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FY 2022 CITY OF EDGEWATER, FLORIDA City of EA TER Florida ANNUAL COMPREHENSIVE FINANCIAL REPORT For the fiscal year ended September 30, 2022 Prepared by: The Finance Department City oof ' EDGEWATER This page intentionally left blank r+n rnit TABLE OF CONTENTS ran Page Introductory Section Letter of Transmittal !II fan GFOA Certificate of Achievement VI List of Principal Officials VII Organizational Chart VIII Financial Section Independent Auditors'Report 1 Management's Discussion and Analysis 5 M+ Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position 17 Statement of Activities 18 FIM Fund Financial Statements: Balance Sheet-Governmental Funds 20 Reconciliation of the Balance Sheet of Government Funds to the Statement of MR Net Position 21 Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds 22 Reconciliation of the Statement of Revenues, Expenditures and FW Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual-General Fund 24 S, Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual-CRA Fund 25 Statement of Revenues, Expenditures and Changes in Fund (MI Balances-Budget and Actual—ARPA Economic Impact Fund 26 Fund Net Position-Proprietary Funds 27 Statement of Revenues, Expenses and Changes in Fund Net Position-Proprietary Funds 28 ran Statement of Cash Flows-Proprietary Funds 29 Statement of Fiduciary Net Position-Fiduciary Funds 30 Statement of Changes in Fiduciary Net Position—Pension Trust Funds 31 Notes to the Financial Statements 32 rwr� Required Supplementary Information(Unaudited) Schedules of changes in the City's General Net Pension Liability and Related 76 Ratios Mn Schedules of changes in the City's Police Net Pension Liability and Related 78 Ratios Schedules of changes in the City s Fire Net Pension Liability and Related Ratios 80 Schedules of General Employees'Contributions 82 rw Schedules of Police Officers'Contributions 84 Schedules of Firefighters'Contributions 86 Schedule of changes in the City's Total Other Post Employment Benefit 88 Liability rm Nonmajor Governmental Funds—Fund Descriptions 89 Combining Balance Sheet-Nonmajor Governmental Funds 90 Combining Statement of Revenues, Expenditures and Changes ml� In Fund Balances -Nonmajor Governmental Funds 92 Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual—Nonmajor Special Revenue Funds 96 Schedule of Revenues,Expenditures and Changes in Fund rw+ Balances-Budget and Actual—Nonmajor Debt Service Funds 97 son I 004 Financial Section-Continued Page Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual—Major Capital Projects Funds 99 Internal Service Funds—Fund Descriptions 100 Combining Statement of Net Position 101 '® Combining Statement of Revenues, Expenses, and Changes in Fund 102 Net Position—Intemal Service Funds Combining Statement of Cash Flows—Internal Service Funds 103 Other Supplemental Schedules—Fiduciary Funds—Fund Descriptions 104 Combining Statement of Fiduciary Net Position—Pension Trust Funds 105 Combining Statement of Changes in Fiduciary Net Position—Pension Trust Funds 106 Statistical Section(Unaudited) Table of Contents 107 Financial Trends Net Position by Component 108 Changes in Net Position 110 Fund Balances of Governmental Funds 114 Changes in Fund Balances of Governmental Funds 116 Revenue Capacity: Assessed Value and Actual Value of Taxable Property 118 Tax Revenues by Source of Governmental Funds 119 FOR Property Tax Rates-Direct and Overlapping Governments 120 Principal Taxpayers 121 Property Tax Levies and Collections 122 Debt Capacity: Ratios of General Obligation Bonded Debt Outstanding 123 Ratios of Outstanding Debt by Type 124 Direct and Overlapping Debt 126 F, Pledged-Revenue Coverage 127 Legal Debt Margin Information 128 Demographic and Economic Information: Demographic and Economic Statistics 130 Principal Employers 131 Operating Information: Full-time Equivalent City Government Employees by Function/Program 132 Operating Indicator by Function/Program 133 Capital Asset Statistics by Function/Program 134 Other Reports: Independent Auditors'Report on Internal Control over Financial Reporting 135 and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditors'Management Letter 137 Independent Accountants' Examination Report 139 H �* -W 1111 r— Cit}'of Ei)GEWATER rlonda ^ ^ February 23, 2023 To the Honorable Mayor, and Members of the City Council, and Citizens of the City of Edgewater City Charter and State law requires that all general-purpose local governments publish a complete set of financial statements presented in conformity with the generally accepted accounting principles in the United States of America (GAAP) and that they be audited in accordance with generally accepted auditing standards in the United States of America by a firm of licensed certified public accountants. ^ Pursuant to the requirement, it is with great pleasure that we present to the City of Edgewater, the Annual Comprehensive Financial Report(ACFR)for the fiscal year ended September 301h, 2022. This report consists of management's representations concerning the finances of the City of Edgewater. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Edgewater has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Edgewater's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Edgewater's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that,to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. James Moore & Co., P.L. a firm of licensed certified public accountants, has issued an unmodified ("clean") opinion on the City of Edgewater's financial statements for the fiscal year ended September 30, 2022. The independent auditors' report is located at the front of the financial section of this report. Management's discussion and analysis (MD&A) immediately follows the independent auditor's report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter ^ of transmittal is designated to complement the MD&A and should be read in conjunction with it. Profile of the Government The City of Edgewater was incorporated in 1951 and has operated under the Council-Manager form of government since 1981. Primary responsibilities of the City Manager are to implement the policies of the elected officials. The City Manager assumes responsibilities of the day-to-day operations of the City, ^ annual budget preparation, appointinglremoving officers and employees. In addition to supervising the daily operations, the City Manager works with elected officials, committees and citizens to plan for the future of the community. ^ The City of Edgewater is located in southeast Volusia County, primarily east of 1-95 south of New Smyrna Beach, two miles west of the Atlantic Ocean and runs along 10.5 miles of the Indian River coastline. The City is within the economic zone of Central Florida,which roughly follows Interstate 4 from Tampa through Orlando to Daytona Beach and the communities along the Atlantic Coast in Volusia County. There are approximately 16,014 acres of land within the City with an estimated population of 23,855. III ^ The City of Edgewater offers a full range of services to its citizens through multiple funds. The City uses funds to separate resources and assure that the City adheres to restrictions placed upon it by legislators, grantors, donors, and other outside parties (e.g. GASB, GAAP). The following is a list of services provided by each fund: • General Fund - provides planning and zoning, economic development, building (e.g. permits, inspections, etc), police, fire, fire rescue, animal control, parks, recreation, streets (new and maintained),code enforcement, and general administrative services. • Water and Sewer Fund-provides water and sewer services. • Solid Waste Fund - uses a combination of City personnel and assets along with private contracted companies to provide solid waste collection. • Stormwater Fund—provides and ensures proper water drainage from all properties. • Internal Service Funds — account for fleet management services, management information systems, general liability insurance, health insurance, workers compensation insurance, and public works complex. • CRA Fund-account for the ad valorem proceeds for the redevelopment of the City's US1 and Park Avenue Corridor. • ARPA Economic Impact Fund—account for American Rescue Plan grant funds. Whenever possible the City seeks alternative sources of revenue to provide services, enhance services, and supplement the existing expenses in the budget. The most prominent example of alternative revenue is grants through the federal, state,and local levels. son Local Economy Long established businesses such as Boston Whaler, Everglades Boats, Edgewater Power Boats, R.J. F, Dougherty Associates, Inc., Publix and Winn Dixie Supermarkets provide employment opportunities within the City. NASA and related supporting enterprises at Cape Canaveral as well as the cruise industry located at Port Canaveral provide further employment opportunities. The County of Volusia currently has a 2.5 percent unemployment rate. During the last year, taxable assessment values of property in Edgewater increased 18.18 percent. The City continues exploring several options to increase economic growth within the City and improve economic development within southeast Volusia County. The Community Redevelopment Agency was created to encourage redevelopment along the City's US. 1 and Park Ave. corridor. The City continues to develop many partnerships between various economic development agencies and local businesses. The City of Edgewater's outlook for fiscal year 2023 is for modest gains in economic growth as the recovery from the Covid 19 Pandemic gains traction in the local economy. The City of Edgewater continues to apply for Federal and State grants to fund sewer, wetlands, public works complex, green infrastructure, stormwater, canals, and other hazard mitigation identified projects. Without these funds, these projects FM would not have been completed within the foreseeable future. Financial Planning and Budgeting The City continued to stress expenditure control in preparing the FY2023 General Fund budget. The City ad valorem millage rate for FY2023 was 6.33, which was 7.22% more than the rolled-back rate. The millage rate of 6.33 will result in an anticipated property tax collections increase of 14.16% due to an increase in property assessments and annexations. The increase was influenced by reduced State Shared Revenue estimates related to the economic impact of the Covid 19 Pandemic. The City adopts a five-year capital improvement plan that identifies future funding needs to maintain, repair and upgrade capital assets and infrastructure including road resurfacing, water line upgrades and vehicle and technology replacement programs within the funding constraints. It should be noted; however, that the CIP is not a fixed document but a flexible, evolutionary document that may change to reflect changing priorities, opportunities,costs,or different financing approaches. FM IV OM ^ ^ Relevant Financial Policies The City Council recognizes the need to meet seasonal shortfalls in cash flows, its susceptibility to emergency or unanticipated expenditures or the possibility of revenue shortfalls during any fiscal year. To address these issues, the City Council included in its Charter a requirement to maintain reserves at a minimum of 15 percent for all operating funds. The September 30, 2022 unrestricted fund balance was higher than the range of 15%-25°/a for each of the operating funds per fund balance policy. The unassigned fund balance is reviewed annually and recommendations are made for mid-year budget amendment and carryforward of additional funds. Budgeting Controls The annual budget serves as the foundation for the City of Edgewater's financial planning and control. All departments of the City of Edgewater are required to submit requests for appropriation to the City Manager. The City Manager then uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the City Council for review. The City Council is required to hold public hearings on the proposed budget and to adopt a final budget by no later than September 30, the close of the City of Edgewater's fiscal year. The appropriated budget is prepared by fund (i.e., General Fund), department (i.e., Fire Department) and division (i.e., Fire Operations). The City Manager may make transfers of appropriations within and between divisions and departments; however, any revisions that alter the total appropriations of any funds must be approved by City Council. Original and final amended budget-to-actual comparisons are provided in this report for each individual governmental fund. Certificate of Achievement Award The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Edgewater for its annual comprehensive financial report for the fiscal year ended September 30, 2021. This was the thirty-eighth consecutive year that the City of Edgewater has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and ^ applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility of another certificate. Acknowledgements The preparation of this report would not have been possible without the efficient and dedicated commitment of the entire Finance Department. The City departments, although not extensively involved in year-end audit activities, contributed significantly by ensuring the accuracy and integrity of the accounting information and statistics compiled throughout the year. Without their diligence, the work of ^ the Finance Department would have been considerably more difficult. Appreciation must also be expressed to the City's external auditor whose suggestions and attention to detail enhanced the quality of this report. In closing, special thanks to the Mayor and City Council for their support and commitment to maintaining the financial integrity and sustainability of the City. Respectfully submitted, Glenn A. Irby Bridgette Vaissiere City Manager Finance Director ^ v fm 0M MR Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting ' Presented to City of Edgewater Florida For its Annual Comprehensive FM Financial Report For the Fiscal Year Ended M, September 30, 2021 FSI �.. P A � fm Executive Director/CEO pq pq VI PM rM ram CITY OF EDGEWATER FLORIDA List of Elected and Appointed Officials September 30, 2022 Mn CITY COUNCIL P"' MAYOR Mike Thomas "q DISTRICT 1 DISTRICT 3 Christine Power Debbie Dolbow ran DISTRICT 2 DISTRICT 4 Gigi Bennington Jonah Powers ADMINISTRATION CITY MANAGER CITY ATTORNEY Glenn A. Irby Aaron R.Wolfe FINANCE CITY CLERK DIRECTOR CMC Bridgette Vaissiere Bonnie Zlotnik FIRE CHIEF POLICE CHIEF SI' Jeff Lariscy Joe Mahoney HUMAN RESOURCES DEVELOPMENT SERVICES DIRECTOR DIRECTOR Julie A. Christine Darren Lear ENVIRONMENTAL SERVICES PARKS&RECREATION DIRECTOR DIRECTOR Randy Coslow Samantha Bergeron Pin Vil City of Edgewater Citizens j Mayor&City Council Mayor-Mike Thomas District I-Christine Power _ District 2-Gigi Bennington Olstrict3-Debbie Dolbow District 4-Jonah Powers City Attorney City Manager City Clerk Aaron Wolfe Glenn Irby Bonnie Zlotnik Advisory Boards Assistant to ^ the City Clerk Monique Toupin Operations Support Departments Departments Environmental Parks& Finance Services Police Fire/Rescue '� Recreation Director Director Chief Chief Director Bridgette Valssiere Randy Coslcw Joe Mahoney Jeff Lariscy Samantha Bergeron Information Recreation Technology Utilities Patrol IFire/Rescue Maintenance Operations Economic Development Water PlaCrimal Investigation Life Safety Samantha Bergeron ^ Wastewater?e Plant Community er Citizens Assisting Code Redevelopment Field OperatPolice Enforcement Events/ (CAPS) Communications Wastewater Collections Animal Control Human Resources Director 4— tulle Christine ^ Development Services Director ^ Darren Lear Building Planning ^ ^ VIII ^ JAMESMOORE INDEPENDENT AUDITORS' REPORT To the Honorable Mayor, City Council,and City Manager City of Edgewater,Florida: Report on the Audit of the Financial Statements Opinions ^, We have audited the financial statements of the governmental activities, the business-type activities,each major fund, and the aggregate remaining fund information of the City of Edgewater, Florida (the City), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements 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 the City, as of September 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General, CRA, and ARPA Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis-for Opinions 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. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Implementation of New Accounting Standard As discussed in Note 12(a) to the financial statements, the City adopted the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, (GASB 87). Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements The City's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a rq going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors'Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material FM if there is a substantial likelihood that, individually or in the aggregate,they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS,we: ffl" • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant "' accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events,considered in the aggregate,that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding,among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal controI--related matters that we identified during the audit. OR Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's FIM discussion and analysis and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the O° basic financial statements in an appropriate operational, economic,or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of P„ management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with Fm sufficient evidence to express an opinion or provide any assurance. FM 2 ow M4 min Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's financial statements as a whole. The combining and individual nonmajor fund MR financial statements, and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules, and �' schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the Mr basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the `� information is fairly stated, in all material respects in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory section and statistical sections, but does not FM include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information,and we do not express an opinion or any form of assurance thereon. �*+ In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 23, 2023, on our consideration of the City'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 solely 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 internal control over financial reporting or on compliance. That report is an integral part of an audit ''^ performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. ME' MER Daytona Beach,Florida February 23,2023 rAn Ma MR 3 City of IEDGEWATE-p Florida This page intentionally left blank 4 rr�1 Management's Discussion and Analysis As management of the City of Edgewater, Florida we offer readers of the City of Edgewater's financial statements this narrative overview and analysis of the financial activities of the City of Edgewater for the fiscal year ended September 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. �+ Financial Highlights • Net Position - The assets and deferred outflows of the City exceeded its liabilities and ,., deferred inflows at the close of FY 2021-2022 by $120,261,705, which represents an increase in Net Position of$20,091,833 or 20.06% from the prior fiscal year. • Governmental Activities Net Position increased by $15,369,368.The increase in Net Position was largely from American Rescue Plan funding and interest earned in the amount of$10,047,227. Governmental Revenue also exceeded budgeted revenue in the amount $2,674,180.The remainder of the increase in Net Position was largely from revenues collected to fund future expenditures including revenues related to impact fees, and departmental budget savings. • Business Type Activities Net Position increased by $4,722,465. Business Type activities also had other budget carryforwards in the amount of $9,917,120. The remainder of the increase in Net Position was largely from revenues collected to fund future expenditures, capital projects, including revenues related to impact fees as well departmental budget savings. • At the end of FY 2021-2022, the General Fund unassigned fund balance was $9,740,727 or an estimated 38.63% of the budgeted FY 2023 General Fund expenditures. This represents an increase of$1,149,775 from the prior fiscal year. �e • During the fiscal year, the City's total debt decreased by $2,186,915. Governmental debt decreased by$530,705 and business-type debt decreased by$1,656,210_ Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Edgewater's (the City) basic financial statements. The City's basic financial statements comprise three MR components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City of Edgewater's finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two reported as Net Position. Over time, increases or decreases in Net Position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. run M 5 ML) 4M The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the an underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Edgewater that are principally supported by taxes and intergovernmental revenues (govemmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Edgewater include general administration, public safety, public works, community redevelopment, and culture and recreation. The business-type activities of the City of Edgewater include water and sewer, solid waste, and stormwater management. The government-wide financial statements include only the City of Edgewater itself(known as the primary govemment). The City of Edgewater has one component unit, the Edgewater Community Redevelopment Agency(CRA). The CRA is reported in a separate ACFR Annual Comprehensive Financial Report The government-wide financial statements can be found on pages 17-19 of this report Fund Financial Statements ^ A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Edgewater, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the City of Edgewater can be divided into three categories:governmental funds, proprietary funds and fiduciary funds. Governmental Funds - Governmental funds are used to account for essentially the same ^ functions reported as governmental activities in the government-wide financial statements. However, unlike the government wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial "' statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Edgewater maintains twelve individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the community redevelopment agency (CRA), ARPA and the capital projects fund, all of which are considered to be major funds. Data from the other eight governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is +� provided in the form of combining statements elsewhere in this report. The City of Edgewater adopts an annual appropriated budget for all of its governmental funds. ^ Budgetary comparison statements have been provided for the general fund and community 6 MM redevelopment fund to demonstrate compliance with their budgets on pages 24-25. Budgetary FM comparison schedules have been provided for the non-major, debt service and capital projects funds at pages 90-99.The basic governmental fund financial statements can be found on pages 20-24 of this report. Proprietary Funds - The City of Edgewater maintains two types of proprietary funds, enterprise funds and internal service funds. Enterprise funds are used to report functions presented as business-type activities in the government-wide financial statements. The City of Edgewater uses enterprise funds to account for water and sewer, solid waste collection and stormwater management. Internal service funds are used to account for management information systems, fleet servicing, and property and casualty, health, dental, life, and workers compensation insurances. Because the services of these funds predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government- wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for water and sewer, solid waste collection and stormwater management which are all considered to be major funds. The basic proprietary fund financial statements can be found on pages 27-29 of this report. rim Internal Service funds are used to account for the financing of centralized services to the City departments on a cost-reimbursement basis. `"l' The basic internal services fund financial statements can be found on pages 101-103 of this report Fiduciary Funds- Fiduciary funds are used to account for resources held for the benefit of parties ran outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Edgewater's own programs. The accounting used for fiduciary funds is much like that used for the ,xr, proprietary funds. The basic fiduciary fund financial statements can be found on pages 105-106 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a more complete understanding of the data provided in the government-wide and fund financial statements. The notes to financial statements can be found on pages 32-75 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in its obligation to provide pension and OPEB benefits to its employees which can be found on pages 76-88. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to financial statements and required supplementary �! information. Combining and individual fund statements and schedules can be found on pages 89- 99 of this report. Mal rMq 7 FXQ Government-Wide Financial Analysis am As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Edgewater, assets and deferred outflows exceed liabilities and deferred inflows by $120,261,705 at the close of the most recent fiscal year. The following table reflects the condensed statement of net position for the current and prior years. For more detail see the Statement of Net Position on page 17. City of Edgewatees Statement of Net Position(in whole dollars) "' Governmental Activltles Business-Type Activities Total Primary Government Assets: 2022 2021 2022 2021 2022 2021 Currentandotherassets $ 37,588,687 $21,812,144 $32,559,894 $30,890,352 $ 70,148,581 $52,702,496 CapitalAssets 47,863,748 48,092.002 44,729,035 44,734,394 92,592,783 $92,826,396 Total Assets 85,452,435 69,904,146 77,288,929 75,624,746 162,741,364 129,706,944 Tola I deferred outflows of resources 6,663,040 5,146,771 2,222,502 1,556,947 8,885,542 6,703,718 .s. Liabilities: Long term liabilities 15,089,857 17,460,510 17,939,155 20,060,133 33,029,012 37,520,643 ran Otherliabilities 2,896,312 2,629,598 6,371,460 9,532,331 9,267,772 12,161,929 TotalLiabilitles 17,986,169 20,090,108 24,310,615 29,592,464 42,296,784 49,682,572 aw Total deferred inflows of resources 5,868,520 2,069,391 3,199,897 $10,775 9,068,417 2,380,166 OM Net Position: Net investment In capftal assets 42,612,125 42,309,674 31,013,423 29,362,572 73,625,548 71,672,246 Restricted 7,467,107 5,050,309 3,484,697 3,770,920 10,951,804 8,821,229 P Unrestricted 18,181,554 5,531,435 17,502,799 14,144,962 35,684,353 19,676,397 Total Net Position $68,260,786 $52,891,418 $52,000,919 $47,278,454 $120,261,705 $100,169,872 At the end of the current fiscal year, the Governmental Liabilities decreased by $2,103,939. The Governmental Liability for FY2021 - 2022 changed mainly from decreased by a Net Pension Liability decrease of $1,921,898. Business-Type Liabilities decreased by $5,281,242. The decrease was largely from Unearned Revenue from the American Rescue Plan Act (ARPA) of 2021 in the amount of $4,012,836 , decreases in Notes Payable and Leases of $1,656,210 and decreases in Net Pension Liability of $440,771. These decreases were offset by an increase in FM Account Payable and other current liabilities of $791,757 and with other smaller changes in FY2021-2022. The City's net position reflects sixty-one percent (61%) investment in capital assets (e.g., land, w" buildings, improvements, infrastructure and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Edgewater s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 8 ORP Mn MR An additional portion of the City of Edgewater's net position 9% represents resources that are MM subject to external restrictions on how they may be used. The remaining balance of Net Position is unrestricted and may be used to meet the govemmenfs ongoing obligations to citizens and creditors. rM At the end of the current fiscal year, the City of Edgewater is able to report positive balances in all categories of net position. ^R The government's net position increased $20,091,833 in the current fiscal year.The government's restricted net position increased by$2,130,575 in the current fiscal year.This was mainly attributed to increases in restricted for Pensions$840,686, Capital Projects of$831,631 and Community ,m, Redevelopment$240,715 and Building Permits$189,719. Further explanations of the increase are proceeded in this section. The following table reflects the condensed Statement of Activities for the current and prior years. For more detail see the Statement of Activities on page 18-19. The remainder of this page intentionally left blank. furl I" �, 9 Oct Governmental Activities Business-Type Activities Total Primary Government 2022 2021 2022 2021 2022 2021 Revenues: Program revenues- Charges forseMces $ 2,363,170 $ 2,057,709 $19,804,454 $ 18,374,279 $ 22,167,624 $ 20,431,988 Operating grantsand contributions 10,965,625 1,163,296 - - 10,965,625 1,163,296 r' Capilalgranlsandconlnbutions 1,807,038 1,291,930 1,643,207 1,962,257 3,450,245 3,254,187 General revenues- ao Propenytaxes 8,744,994 8,108,454 - - 8,744,994 8,108,454 Franchise and utiGtytaxes 4,263,593 3,887,989 - - 4,263,593 3,887,989 Intergovernmental 3,132,123 2,757,368 - - 3,132,123 2,757,368 Investment Income and miscellaneous 122,757 53,417 211,773 192,802 334,530 246,219 Totalrevenues 31,399,300 19,320,163 21,659,434 20,529,338 53,058,734 39,849,501 Expenses: General government 3,464,788 2,683,052 - - 3,464,788 2,683,052 Public safety 8,822,595 8,767,933 - - 8,822,595 8,767,933 TransporlaUon/public works 2,729,692 1,779,480 - 2,729,692 1,779,480 Parks and recreation 2,295,671 1,969,040 - - 2,295,671 1,969,040 Community Redevelopment 187,878 177,892 - - 187,678 177,892 Interest on long-termdebt 159,233 174,585 - - 159,233 174,585 arr Waterand sewer - - 10,536,200 9,436,947 10,536,200 9,436,947 Solld waste - - 3,137,039 2,806,094 3,137,039 2,806,094 Slormwatermenagement - - 1,633,805 1,396,460 1,633,605 1,396,460 To(alexpenses 17,659,857 15,551,962 15,307,044 13,639,501 32,966,901 29,191,483 Excess(deficiency)before transfers 13,739,443 3,768,181 6,352,390 6,889,837 20,091,833 10.658,018 cua Transfers In/(out) 1,629,925 709,429 (1,629,925) (709,429) - - Increase(Decrease)in net rn� position 15,369,368 4,477,610 4,722,465 6,180,408 20,091,833 10.658,018 Net Position- Beginning 52.891,418 46,413,808 47,278,454 41,098,046 100,169,872 89,511,854 Net Position- Ending 5 68,260,786 $ 52,891,418 $52,000,919 $ 47,278,454 $ 120,261,705 $ 100,169,872 r� w� 10 *•^ �, Statement of Activities fm Governmental Activities-Governmental activities increased the City of Edgewater's net position by $15,369,368. Key elements of this increase are as follows: `MN' • Governmental Activities net position increased largely from the American Rescue Plan funding and interest earned in the amount of$10,047,227. � • Governmental Revenue also exceeded budgeted revenue in the amount$2,674,180. The remainder of the increase in net Position was largely from revenues collected to fund future expenditures including revenues related to impact fees, and departmental budget savings. Business-Type Activities - Business-type activities increased the City of Edgewater's net position by$4,722,465. Key elements of this increase are as follows: • Business Type activities also had other budget carryforwards in the amount of$9,917,120. • The remainder of the increase in net Position was largely from revenues collected to fund future expenditures, capital projects, including revenues related to impact fees as well departmental budget savings. The remainder of this page intentionally left blank. FMn M �n � 11 Expenses and Program Revenues-Governmental Activities $8,822,595 $9,000,000 $5,000,000 $6,9130,425 $7,000,000 j i $6,000,000 $5,000,000 $3.157.834 1 $3,464,788 $4,000,000 $2,729,692 $2,295,671 $3,000,000 $2268.272 $2.219,301 $2,000,000 i $1,000,000 $187,878 $159,233 1 $0 so Genolal Administmtve Public So'cly Public Works Cullum and Cemmrn,Iy I n'a test on Lnc}Tcrm Rrteation Rodovoloprnonl Debt CExponses oProyamRevenues Revenues by Source — Governmental Activities Other Taxes 45.8% Transfers 4.9% Investment Property Taxes Income & 26.5% Miscellaneous 0,4% Program Revenues Intergovernmental 12.9% 9.5% a Property Taxes olntergovemmental OProgram Revenues alnvestmentIncome&Miscellaneous aTransfers 00therTaxes 12 Expenses and Program Revenues-Business Type Activities $15,289,276 $16,000,000 $14,000,000 { $12,000,000 $10,536,200 I $10,000,000 I � $8,000,000 $6,000,000 $3,931,435 � 53,137,039 $2,326,950 $4,000,000 51,633,805 $2,000,000 $0 1Malorand Swor Sold Waste Stranwater Management oFspcme cPrayom ReJm Revenues by Source - Business-Type Activities Capital Grants and Contributions 7.6% Investment Income 8r Charges for Miscellaneous Services 1.00 0 91.4% aCapltal Grants and Contributions []Charges for Services Olnvestment Income&Miscellaneous r� rev 13 MM FM Financial Analysis of the Government's Funds As noted earlier, the City of Edgewater uses fund accounting to ensure and demonstrate compliance with finance-related requirements. Governmental Funds- The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Edgewater's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Edgewater's governmental funds reported combined ending fund balances of $29,614,732 an increase of$13,664,959 in comparison with the prior year. Approximately 33% of this amount or $9,740,727 constitutes unassigned fund balance, which is available for spending at the City's discretion. The City also has $5,417,000 of fund balance committed to Capital Projects. The City has assigned fund balance for the Capital Projects of $4,630,227, subsequent year's budget of $4,232,364 and replacement of City Hall in the amount of $739,133. Restricted fund balance of $4,835,133 is for scholarships, public safety, debt service, building permits, community redevelopment, manatee preservation, tree mitigation and capital projects. Non-spendable fund balance of $20,148 is held for inventories and prepaids. The General Fund is the chief operating fund of the City of Edgewater. At the end of the current fiscal year, unassigned fund balance of the General Fund was $9,740,727, while total fund balance was $15,018,200. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 38.6% of the total General Fund 2023 budgeted expenditures, while total fund balance represents 59.6% of that same amount. During the current fiscal year, the fund balance of the General Fund increased by $2,232,598 was largely from revenues collected to fund future expenditures including revenues related to impact fees as well departmental budget savings. The remainder of the increase in fund balance was largely from revenues collected to fund future expenditures as well departmental budget savings. Fiscal Year 2022 is the seventh year of activity for the City's established Community Redevelopment Agency Fund (CRA). This agency is established for the purpose of making improvements to core downtown properties to enhance economic activity in the City. Revenues are being collected from the County and City. Future expenditures are budgeted primarily for land acquisitions or qualified community enhancements. Proprietary Funds - The City of Edgewater's proprietary funds provide the same type of FM information found in the government-wide financial statements, but in more detail. Unrestricted net position of the proprietary funds (including enterprise and internal service funds) at the year-end amounted to $20,294,248.The total increase in unrestricted net position "' for the Proprietary Funds was $3,672,606. Other factors concerning the finances of the enterprise funds have already been addressed in the discussion of the City of Edgewater's business-type activities. M+ 14 PM M General Fund Budgetary Highlights MR The final revenue budget was increased from the original budget by $48,118. Actual revenues were $2,674,180 higher than budget due mainly to the following, increased intergovernmental revenue of $1,097,227 which is mostly related to conservative budget estimates for FY2022 P" which were estimated during a time of uncertainty related to how the Covid pandemic would impact these types of revenues, utility and franchise fees of $670,441, Licenses and permits $481,884 and revenues from property tax collections in the amount of$100,126. �t Actual expenditures were $2,410,117 less than budgeted expenditures mostly due to holding positions open in various departments, reduction in operating costs, the timing of Disaster rMt expenditures related to Covid in order to cover the effects of the Covid pandemic. The City also had $4,232,364 of Budget roll forwards related to open purchase orders and approved Capital projects. "`t The final expenditure budget was increased from the original budget by $1,485,941 due mainly to an increase in Capital Outlay expenditures of $321,886 which were related to roll forward purchase orders from the prior year and projects and other capital expenditures approved �+ during FY2022. Capital Asset and Debt Administration Capital Assets- The City of Edgewater's investment in capital assets for its governmental and business-type activities as of September 30, 2022, amounts to $92,592,783 net of accumulated depreciation. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure and Construction in Process. The total decrease in the City's investment in capital assets for the 2022 fiscal year was 0.25%. Mgt City of Edgewater's Capital Assets (net of depreciation)(in whole dollars) Governmental Activities Business-Type Activities Total Primary Government rpt 2022 2021 2022 2021 2022 2021 Land $ 26,226,752 $ 26,226,752 $ 1,397,173 $ 1,397,173 $ 27,623,925 $ 27,623,925 Buildings 3,033,092 3,246,709 3,716,960 4,160,827 6,750,052 7,407,536 Pal Improvements 9,683,607 10,245,358 33,309,698 33,904,743 42,993,305 44,150,101 Machlneryandequipment 1,871,303 2,107,032 4,823,470 3,791,896 6,694,773 5,898,928 tnirastructure 5,145.516 5,670,060 - 5,145,516 5,670,060 Construction En progress 1,845,745 596,091 1,457,692 1,479,755 3,303,437 2,075,846 Right-lo-use assets 57,733 24,042 81,775 - Total $ 47,863,748 $ 48,092,002 $ 44,729,035 $ 44,734,394 $ 92,592,783 $ 92,826,396 r� Additional information on the City of Edgewater's capital assets can be found in the notes to the r.t financial statements on pages 48-49 of this report. run 15 M4 Long-Term Debt At the end of the current fiscal year, the City of Edgewater had total debt outstanding of $18,967,235. This debt includes notes payable, state revolving loans and leases. The City is current on all required debt service obligations. City of Edgewater's Outstanding Debt (in whole dollars) Governmental Activities Business-Type Activities Total Primary Government 2022 2021 2022 2029 2022 2021 Notespayable $ 4,754,289 $ 5,156,081 $ 5,188,711 $ 6,207,920 $ 9,943,000 $ 11,364,001 State revolving loans - - 7,899,609 8,403,949 7,899,609 8,403,949 Leases 497,334 626,247 627,292 759,953 1,124,626 1,386,200 $ 5,251,623 $ 5,782,328 $ 13,715,612 $ 15,371,822 $ 18,967,235 $ 21,154,150 During the current fiscal year, the City's total debt decreased by $2,186,915 which was a 10% reduction. Additional information on the City of Edgewater's long-term debt can be found in the notes to the financial statements on pages 51-58 of this report. Reserve Policy In November 2016, voter's approved a charter amendment requiring the City to maintain reserves at a minimum of 15 percent of all operating funds (General, Water & Sewer, Solid F° Waste and Stormwater).The policy addresses that the City is required to maintain reserves at a minimum of 15 percent with a maximum of 25 percent of the respective fund. The reserve range is established based on a percentage of current years' budget. Reserve levels above the top of MR the range are deemed to be available for capital or other lawful purposes. The minimum Reserve amount per Charter is currently set at$2,929,671 (15%) of the FY2022— 2023 General Fund Budget. The amount available for capital or other lawful purposes less any P' reserves or set asides is$6,811,056 unassigned less reserves at September 30, 2022. Next Year's Budget and Rates ,•• The City Council adopted a conservative budget for Fiscal Year 2023. The proposed budget contains many ambitious work plan objectives that are intended to address the highest priorities in the community and the goals of the City Council. This budget also sets the financial foundation to establish an accurate and understandable assessment and tracking of the uses and sources of all funds. The 2023 budget presents a number of opportunities and challenges to improve overall service to the community. ow Requests for Information This financial report is designed to provide a general overview of the City of Edgewater's "" finances for those with an interest in the government's finances. Questions concerning any of the information should be addressed to the office of the Finance Director, City of Edgewater, P.O. Box 100, Edgewater, Florida 32132-0100. MM PM 16 tM Fan CITY OF EDGEWATER,FLORIDA PER Statement of Net Position September 30,2022 Governmental-type Business-type rpff� Activities Activities Total ASSETS Cash and cash equivalents S 18,537,461 S 19,746,342 S 38,283,803 Investments 12,984,575 4,463,169 17,447,744 Receivables,net 573,989 2,651,994 3,225,983 Lease receivable 147,303 1,646,500 1,793,803 Special assessment receivable - 141,623 I41,623 Due from other 8ovemments 1,935,058 335,029 2,270,087 t�q Inventories and prepaids 79,016 7,421 86,437 Net pension asset 3,331,285 - 3,331,285 Restricted assets: Cash and cash equivalents - 3,567,816 3,567,816 Capital assets: Nondepreciable assets 28,072,497 2,854,865 30,927,362 Depreciable assets,net 19,791,251 41,874,170 61,665,421 Total assets S 85,452,435 $ 77,288,929 S 162,741,364 ran DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions S 3,442,960 S 411,207 S 3,854,167 Deferred outflows related to OPEB 3,220,080 1,611,295 5,031,375 Pr! Total deferred outflows of resources S 6,663,040 S 2.222,502 $ 8,885,542 LIABILITIES Accounts payable and other current liabilities $ 1,311,458 S 1,373,769 S 2,685,227 Accrued interest payable 63,246 83,312 146,558 tai Unearned revenue 90,071 1,979,418 2,069,489 Due to other governments 32,246 - 32,246 Customer deposits - 788,710 788.710 Noncurrent liabilities: Due within one year: Notes and leases payable 505,140 1,708,563 2,213,703 Compensated absences 894,151 437,688 1,331,839 Due in more than one year. Notes and leases payable 4,746,483 12,007,049 16,753,532 t■n Compensated absences 538,872 76,658 615,530 Net pension liability 4,137,269 2,667,628 6,804,897 Total OPEB liability 5,667,233 3,187,820 8,855,053 Total liabilities S 17,986,169 S 24,310,615 S 42,296,784 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions $ 4,151,695 S 713.184 S 4,864,879 Deferred inflows related to OPEB 1,581,554 889,623 2,471,177 Deferred inflows related to leases 135,271 1,597,090 1,732,361 PM1 Total deferred inflows of resources $ 5,868,520 S 3,199,897 S 9,068,417 NET POSITION Net investment in capital assets S 42,612,125 S 31,013,423 S 73,625,548 Restricted for: Debt service 92750 1,097,590 1,189,840 Public safety 46,394 - 46,394 Building permits 23$,037 235,037 Manatee preservation 9,400 - 9,400 ren Pensions 2,680,016 2,680,016 Tree mitigation 108,113 - 108,113 Capital projects 3,641,508 2,387,107 6,028,615 Community redevelopment 647,446 - 647,446 r rt Scholarships 6,943 - 6,943 Unrestricted 18,181,554 17,502,799 35,684,353 Total net position S 68,260,786 S 52,000,919 S 120,261,705 The notes to the financial statements are an integral part of this statement. ron rX14 17 pq FM CITY OF EDGEWATER,FLORIDA Statement of Activities For the Fiscal Year Ended September 30,2022 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities: General administrative $ 3,464,788 $ 1,435,832 $ 2,316,002 $ 6,000 Public works 2,729,692 116,396 1,143,998 1,007,878 Public safety 8,822,595 737,428 5,534,058 618,940 Culture and recreation 2,295,671 73,514 1,971,567 174,220 Community redevelopment 187,878 - - - Interest on long-term debt 159,233 - - - Total governmental activities 17,659,857 2,363,170 10,965,625 1,807,038 Business-type activities: Water/Sewer 10,536,200 13,676,600 - 1,612,676 Solid waste 3,137,039 3,803,187 - 28,248 Stormwater 1,633,805 2,324,667 - 2,283 Total business-type activities 15,307,044 19,804,454 - 1,643,207 Total primary government $ 32,966,901 $ 22,167,624 $ 10,965,625 $ 3,450,245 General revenues: Property taxes Utility and franchise taxes Intergovernmental shared revenue-non-program Investment earnings Miscellaneous revenue Transfers Total general revenues and transfers Change in net position Net position-beginning Net position-ending Wit The notes to the financial statements are an integral part of this statement. an faq PM 18 PM MM FM Net(Expense)Revenue and Changes in Net Position MR Governmental Business-type Activities Activities Total $ 293,046 $ - $ 293,046 (461,420) - (461,420) (1,932,169) - (1,932,169) (76,370) - (76,370) (187,878) - (187,878) �++ (159,233) - (159,233) (2,524,024) - (2,524,024) 4,753,076 4,753,076 694,396 694,396 - 693,145 693,145 6,140,617 6,140,617 (2,524,024) 6,140,617 3,616,593 MR 8,744,994 - 8,744,994 MMI 4,263,593 - 4,263,593 3,132,123 - 3,132,123 86,591 87,396 173,987 36,166 124,377 160,543 1,629,925 (1,629,925) - 17,893,392 (1,418,152) 16,475,240 15,369,368 4,722,465 20,091,833 52,891,418 47,278,454 100,169,872 $ 68,260,786 $ 52,000,919 $ 120,261,705 a.q a� 19 MR Im CITY OF EDGEWATER,FLORIDA Balance Sheet r" Governmental Funds September 30,2022 0M Capital ARPA Other Total General Projects Economic Governmental Governmental Fund Fund CRA Fund Impact Fund Funds Funds om ASSETS Cash $10,764,544 S 288,815 S 647,436 5 - S 3,452,211 S 15,153,006 Investments 2,937,348 - - 10,047,227 - 12,984,575 Receivables,net 573,886 - 10 - 53 573,949 Due from other governments 1,536,038 399,018 - - 2 1,935,058 Lease receivable 147,303 - - - - 147,303 Inventories and prepaids 20,148 - 20,148 Tom assets $15,979,267 S 687,833 S 647,446 $ 10,047,227 $ 3,452,266 S 30,814,039 LIABILITIES Accounts payable $ 198,565 S 237,651 S - S - $ 589 S 436,805 Accrued liabilities 504,914 - - - - 504,914 Due to other governments 32,246 - - - - 32,246 Unearned revenue 90,071 - - - 90,071 Total liabilities 825,796 237,651 - 589 1,064,036 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to leases 135,271 - - - - 135,271 FUND BALANCES Nonspendable: Inventories and prepaids 20,148 - - - - 20,148 Restricted for: Scholarships 6,943 - - - - 6,943 Public safety - - - - 46,394 46,394 Debt service 43,848 - - - 96,444 140,292 Building permits 235,037 - - - - 235,037 Community redevelopment - - 647,446 - - 647,446 Manatee conservation - - - - 9,400 9,400 Tree mitigation - - - - 108,113 108,113 Capital projects - 450,182 - - 3,191,326 3,641,508 Committed to: Capital projects - - - 5,417,000 - 5,417,000 Assigned to: Pw Subsequent year's budget 4,232,364 - - - - 4,232,364 City Hall 739,133 - - - - 739,133 Capital projects - - - 4,630,227 - 4,630,227 Unassigned 9,740,727 - 9,740,727 am Total fund balances 15,018,200 450,182 647,446 10,047,227 3,451,677 29,614,732 Total liabilities,deferred inflows, and fund balances $15,979,267 S 687,833 $ 647,446 S 10,047,227 S 3,452,266 S 30,814,039 Ma The notes to the financial statements are an integral part of this statement. » 20 +� fatl MR CITY OF EDGEWATER,FLORIDA Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position September 30,2022 Total governmental funds fund balance $ 29,614,732 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, rwry therefore,are not reported in the funds-total less accumulated depreciation. Land and land rights 25,289,849 Buildings and improvements 34,399,412 Infrastructure 61,538,602 Furniture and equipment 6,920,039 Construction in progress 683,966 Right to use asset 78,109 Accumulated depreciation (83,192,082) 45,717,895 Internal service funds are used by management to charge the costs of fleet, management information systems and insurance activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. 4,914,721 On the governmental fund statements,a net pension liability/asset is not recorded until an amount is due and payable and the pension plan's fiduciary net position is not sufficient for payment of those benefits(no such liability exists at the end of the current fiscal year).On the Statement of Net Position,the City's net pension liability/asset of the defined benefit pension plans is reported as a noncurrent liability.Additionally,deferred FOR? outflows and deferred inflows related to pensions are also reported. Net pension liability (4,137,269) Net pension asset 3,331,285 Deferred outflows related to pensions 3,442,960 Deferred inflows related to pensions (4,151,695) (1,514,719) On the governmental fund statements,an OPER liability is not recorded unless an amount is due and payable(no such liability exists at the end of the current fiscal year).On the Statement of Net Position,the City's OPER liability is reported as a noncurrent liability.Additionally,deferred outflows and deferred inflows related to OPEB are also reported. Total OPEB liability (5,391,743) Deferred outflows related to OPER 3,063,549 Deferred inflows related to OPER (1,504,673) (3,832,867) Long-term liabilities are not due and payable in the current period and, therefore,are not reported in the funds. Compensated absences (1,346,733) Long-term debt (5,229,042) (6,575,775) Accrued interest payable on bonds that is not recognized on the fund statements. (63,201) Net position of governmental activities $ 68,260,786 r� The notes to the financial statements are an integral part of this statement. MM 21 WMA MM CITY OF EDGEWATER.FLORIDA Statement of Revenues,Expenditures,and Changes in Fund Balances 'm' Governmental Funds For the Fiscal Year Ended September 30,2022 t11M Capital ARPA Other Total General Projects Economic Governmental Governmental Fund Fund CRA Fund Impact Fund Funds Funds �► REVENUES Taxes: Property $ 8,136,885 $ - $ 329,734 S - S 278,375 $ 8,744,994 Utility and franchise taxes 4,263,593 - - - - 4,263,593 �+ Intergovernmental 3,991,868 739,995 10,000,000 - 14,731,863 Licenses and permits 1,087,827 - - 9,305 1,096,132 Charges for services 2,610,790 - - - - 2,610,790 Fines and forfeitures 78,866 - - - 17,111 95,977 .o Investment earnings 39,315 - 117 47,227 507 86,166 Impact fees - - - - 1,286,581 1,286,591 Miscellaneous revenue 80,918 - - - 80,918 Total revenues 20,289,062 739,995 329,851 10,047,227 1,590,879 32,997,014 EXPENDITURES Current: Legislative 92,439 - - - - 92,439 orc+ Executive 660,158 - - - - 660,158 Legal counsel 140,313 - - - - 140,313 Community development 981,320 - 78,486 - - 1,059,806 Public works 1,068,675 949,364 - - 874 2,018,913 Public safety: Law enforcement 4,996,766 - - - - 4,996,766 Fire and emergency services 4,383,367 - - - - 4,383,367 Code enforcement 180,587 - - - - 180,587 Animal services 175,786 - - - - 175,786 Culture and recreation 1,762,895 - - - - 1,762,895 General administrative services 3,130,507 - - - - 3,130,507 Debt service: Principal 292,880 - - - 305,000 597,880 Interest 27,458 - - 130,998 158,456 Capital outlay 234,192 718,684 - - 61,231 1,014,107 Total expenditures 18,127,343 1,668,048 78,486 - 498,103 20,371,980 Excess(deficiency)of revenues over expenditures 2,161,719 (928,053) 251365 10.047-227 1,092,776 12,625,034 OTHER FINANCING SOURCES(USES) Transfers in 1,139,075 857,352 - - 161,013 2,157,440 Transfers out (1,068,196) - (10,650) - (38,669) (1,117,515) Total other financing sources(uses) 70,879 857,352 (10,650) 122,344 1,039,925 Net change in fund balances 2,232,598 (70,701) 240,715 10,047,227 1,215,120 13,664,959 Beginning fund balances 12,785,602 520,883 406,731 2,236,557 15,949,773 am Ending fund balances $15,018,200 S 450,182 $ 647,446 $10,047,227 $ 3,451,677 $ 29,614,732 The notes to the financial statements are an integral part of this statement. PM v.Q » 22 M4 CITY OF EDGEWATER,FLORIDA ram Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balances of Governmental Funds To the Statement of Activities �+ For the Fiscal Year Ended September 30,2022 MM Net change in fund balances-total governmental funds $ 13,664,959 Amounts recorded for governmental activities in the statement of activities are different because: MR Governmental funds report capital outlays as expenditures.However,in the statement of activities the cost of those assets is allocated over their f=9 estimated useful lives and reported as depreciation expense.This is the amount by which capital outlays exceeded depreciation in the current period. Expenditure for capital assets 1,014,107 r+�1 Current year depreciation (1,966,162) (952,055) 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 the governmental funds. Changes in compensated absences (37,513) Changes in interest payable (123) The net revenue of certain activities of internal service funds is reported with governmental activities. 971,396 r� Governmental funds report contributions to defined benefit pension/ OPEB plans as expenditures.However,in the Statement of Activities, ,.� the amount contributed to defined benefit pension/OPEB plans decreases(increases)the future net pension/OPEB liability(asset).Also included in pension/OPEB expense in the Statement of Activities are deferred inflow and deferred outflow amounts required to be amortized. Change in net pension liability/asset and deferred inflows/outflows related to pensions 1,389,509 Change in Total OPEB liability and deferred inflows/outflows related to OPEB (264,685) M The issuance of long-term debt(i.e.,bonds and leases)provides current financial resources to governmental funds,while the repayment of the principal long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net position. F=► Also,governmental funds report the effect of premiums,discounts,and deferred amount on refunding when debt is first issued,whereas these amounts are deferred and amortized in the Statement of Activities. nom► Principal payments 597,880 597,880 Change in net position of governmental activities $ 15,369,368 Q rM The notes to the financial statements are an integral part of this statement. PM 23 P" PM CITY OF EDGEWATER,FLORIDA Statement of Revenues,Expenditures,and PM Changes in Fund Balances-Budget and Actual General Fund For the Fiscal Year Ended September 30,2022 Variance with Final ^, Budgeted Amounts Budget- Actual Positive Original Final Amounts (Negative) REVENUES -. Taxes: Property $ 8,036,759 $ 8,036,759 $ 8,136,885 $ 100,126 Utility and franchise taxes 3,593,152 3,593,152 4,263,593 670,441 Intergovernmental 2,889,016 2,894,641 3,991,868 1,097,227 Licenses and permits 578,450 605,943 1,087,827 481,884 Charges for services 2,346,987 2,346,987 2,610,790 263,803 Fines and forfeitures 92,200 92,200 78,866 (13,334) Investment earnings 4,800 4,800 38,315 33,515 Miscellaneous revenue 25,400 40,400 80,918 40,518 Total revenues 17,566,764 17,614,882 20,289,062 2,674,180 r•+ EXPENDITURES Current: Legislative 115,842 118,842 92,439 26,403 Executive 700,520 776,450 660,158 116,292 Legal counsel 149,500 149,500 140,313 9,187 Community development 1,069,871 1,198,645 981,320 217,325 Public works 1,203,023 1,325,896 1,068,675 257,221 Public safety: Law enforcement 4,977,712 5,223,324 4,996,766 226,558 Fire and emergency services 4,404,447 4,571,005 4,383,367 187,638 Code enforcement 204,336 232,247 180,587 51,660 Animal services 206,111 216,792 175,786 41,006 Culture and recreation 2,001,242 2,101,949 1,762,895 339,054 PM General administrative services 3,117,128 3,399,135 3,130,507 268,628 Debt service: Principal 275,762 275,763 292,880 (17,117) FM Interest 29,577 29,578 27,458 2,120 Capital outlay 596,448 918,334 234,192 684,142 Total expenditures 19,051,519 20,537,460 18,127,343 2,410,117 FM Excess(deficiency)of revenues over expenditures (1,484,755) (2,922,578) 2,161,719 5,084,297 OTHER FINANCING SOURCES(USES) Transfers in 1,094,641 1,094,641 1,139,075 44,434 OR Transfers out (1,802,013) (2,037,145) (1,068,196) 968,949 Total other financing sources(uses) (707,372) (942,504) 70,879 1,013,383 Net change in fund balances (2,192,127) (3,865,082) 2,232,598 6,097,680 f0m Beginning fund balances 12,785,602 12,785,602 12,785,602 - Ending fund balances $ 10,593,475 $ 8,920,520 $ 15,018,200 $ 6,097,680 MA The notes to the financial statements are an integral part of this statement. 24 01M rum CITY OF EDGEWATER,FLORIDA Statement of Revenues,Expenditures,and Changes in Fund Balances—Budget and Actual CRA Fund MR For the Fiscal Year Ended September 30,2022 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) REVENUES Property tax $ 311,992 $ 329,734 $ 329,734 S - "'� Investment earnings - - 117 117 Total revenues 311,992 329,734 329,851 117 EXPENDITURES Other Services&Charges 411,726 597,051 78,486 518,565 Total expenditures 411,726 597,051 78,486 518,565 Excess(deficiency)of revenues over expenditures (99,734) (267,317) 251,365 518,682 OTHER FINANCING SOURCES(USES) Transfers out - (139,414) (10,650) 128,764 Total other financing sources(uses) - (139,414) (10,650) 128,764 Net change in fund balance (99,734) (406,731) 240,715 647,446 req Beginning fund balances 406,731 406,731 406,731 - Ending fund balances $ 306,997 $ - $ 647,446 $ 647,446 The notes to the financial statements are an integral part of this statement. n■► A Foul Rq 25 f1m CITY OF EDGEWATER,FLORIDA Statement of Revenues,Expenditures,and Changes in Fund Balances—Budget and Actual ARPA Economic Impact Fund For the Fiscal Year Ended September 30,2022 Variance with Budgeted Amounts Final Budget- •� Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ - $ - $ 10,000,000 $ 10,000,000 Investment earnings - - 47,227 47,227 Total revenues - - 10,047,227 10,047,227 .� Excess(deficiency)of revenues over expenditures - - 10,047,227 10,047,227 OTHER FINANCING SOURCES(USES) Transfers out - (252,000) - 252,000 Total other financing sources(uses) - (252,000) - 252,000 �*+ Net change in fund balance - (252,000) 10,047,227 10,299,227 Beginning fund balances - - - - Ending fund balances $ - $(252,000) $ 10,047,227 $ 10,299,227 The notes to the financial statements are an integral part of this statement. 00 fm va PQ 26 OM lam CITY OF EDGEWATER.FLORIDA MR Statement ofNm Position Proprimay Funds September 30,2022 Business-tv eAvivillej- nterpriseFunds ble or Funds GovtrrtmeotA tial Activities- Wattrl Sewer Solid Waste Stormwater Internal Service utility Utility Utility ToW Funds ASSETS Current assets: MCI Cash and cashcquivnicnss S 13,074,389 S 3,283,206 S 3,388,747 S 19,746,342 S 3.3B4,455 Invcslments 3,644,765 515,070 283,334 4,463,169 Receivables,net 1,852,521 503,878 295,595 2,651,994 40 Due from other 8ovemments 172,517 120,414 42,098 335,029 - Le4se receivable 79,250 - 79,250 - rMn Inventories - - 11,303 Prepaid items 7,421 7,421 47,565 Total current assets 18,830.861 4,442.568 4,009,774 27,283.205 3,443,363 Noncurrent assets: Restricted cash and cosh equivalents: Deblservice 1,180,709 - 1,180,709 - (MR Capital projects 2,387,107 2,387.107 - Total restricted cash and cash equivalents 3,567,816 3,567,616 - Capital assets: Land and land rights 1,079,749 317,424 1,397,173 936.903 fag Buildings andimprovcments 81,591,416 69,075 9,928,002 91,588,493 60,684 Machinery and equipment 11,081,719 2,907,854 2,475,212 16,464,785 451,087 Construction in progress 1,264,513 173,179 1,457,692 1,161,779 Right to use asse is 32,527 - 32,527 - Lessaccumulateddeprceiation (57,438,908) (1,616,207) (7,156,520) (66,211,63.5) (464,600) ral Total capital assets(am of accumulated depreciation) 37,631,016 1,160,722 5,737,297 4.729,035 2,145,853 Leastreceivable 1,567,250 - - 1,567,250 - Special assessment receivable 141,623 - - 141,623 Total noncurrent assets 42,907,705 1,360,722 5,737.297 50,005,724 _ 2,145,853 fall) Total axe+ S 61,738,568 S 5,803,290 S 9,747.071 S 77.288,929 S 5.589.216 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions $ 294,043 S 94,487 S 22,677 $ 411,207 S - Deferred outflows related to OPEB 1,095,721 469,595 245,979 1,811,295 156,531 {al) Total deferred outflows of resources S 1,389,764 S 564,082 S 268,656 S 2,222,502 S 15031 LIABILITIES Current liabilities: Aecotmts payable $ 967,589 S 138,542 S 12.919 S 1,119,050 S 347,226 Mal Accrued liabilities 185,264 38,622 30,833 254,719 22,513 Compensated absences 325,808 61,368 50,512 437,688 52,162 Customer deposits 788.710 - - 788,71Q - Untamed revenue 1,979,418 - 1,979,418 - Accrued interest payable from restricted cash 83,119 - 193 83,312 45 fqn Leases payable 8,376 147,000 - 155,376 - Notes payable 1,195,457 - 47,723 1,243,180 11,172 Revenue bonds payable 310,007 310,007 Total current liabilities 5,843,748 385,532 142,180 6.371,460 433,118 Noncurrent liabilities: 001 Compensated absences 54,711 1,051 18,896 76,658 34,128 Bonds,notes,and Icaws payable 11,502,311 456,000 48,738 12,007,049 11,409 Net pension liability 1,907,550 612,966 147,112 2,667,628 Tout OPEB liability 1,928,434 826,472 432,914 3.187,820 275.490 Toted noncurrent liabilities I5,393.006 1,898,499 647,660 17,939,155 321,027 Total liabilities S 21,236.754 S$284,021 $ 789,940 S 24,310,615 S 754,145 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to passions S 509,979 S 163,875 S 39,330 S 713,184 S - Deferred inflows related to OPER 538,167 230,653 120,813 889,623 76,881 p� Deferred inflows related to leases 1,597,090 !,591,090 - Tolaldeferredinflowsofmsources S 2,645,236 S 394,518 S 160,143 $ 3,199,897 S 76.881 NET POSITION Net inves intent in capital assets S 24,614,865 S 757,722 $ 5,640,836 S 3[,013,423 S 2,123,272 fall Restricted: Capital projects 2,387,107 - - 2,387,107 Debt service 1,097,590 - - 1,097,590 - Unrestrictcd 11,146,780 2,931,111 3,424,908 17,502,799 2,791,449 Total net position S 39,246,342 S 3,668,833 S 9,065,744 S 52,000,919 S 4,914,721 flit The notes to the financial statemmm arc an integral pan of this statement. r>•1 27 .a CITY OF EDGEWATER,FLORIDA Statement of Revenues,Expense and Changes in Fund Net Position Proprietary Funds For the Fiscal Year Ended September 30,2022 .., Business-type Activities-Enterprise Funds Major Funds Governmental Activities- Water/Sewer Solid Waste Stormwater Internal Service Utility Utility Utility Total Funds Operating revenues: NP Charges for sales and services $ 13,676,600 $ 3,803,187 $ 2,324,667 S 19,804,454 $ 6,408,001 Total operating revenues 13,676,600 3,803,187 2,324,667 19,804,454 6,408,001 Operating expenses: MR Salaries and employee benefits 3,830,968 1,060,452 739,379 5,630,799 3,458,428 Supplies and materials 1,037,124 208,995 58,697 1,304,816 751,041 Contract services 476,087 1,204,139 28,385 1,708,611 322,772 Other services and charges 2,385,853 499,614 291,768 3,177,235 879,083 'w Depreciation and amortization 2,585,026 191,755 512,773 3,289,554 25,052 Total operating expenses 10,315,058 3,164,955 1,631,002 15,111,015 5,436,376 Operating income(loss) 3,361,542 638,232 693,665 4,693,439 971,625 F, Nonoperating revenues(expenses): Investment earnings 79,353 5,087 2,956 87,396 424 Miscellaneous revenues 109,883 10,681 3,813 124,377 - Gain on disposition of capital assets - 38,000 - 38,000 - QER Interest expense (221,142) (10,084) (2,803) (234,029) (653) Total nonoperating revenues(expenses) (31,906) 43,684 3,966 15,744 (229) Income(loss)before capital contributions and transfers 3,329,636 681,916 697,631 4,709,183 971,396 Fm Transfers in 10,650 - - 10,650 - Transfers out (1,073,734) (342,372) (224,469) (1,640,575) - Capital grants 339,607 28,248 2,283 370,138 - ,m Capital contributions 1,273,069 - - 1,273,069 - Change in net position 3,879,228 367,792 475,445 4,722,465 971,396 Total net position-beginning 35,367,114 3,321,041 8,590,299 47,278,454 3,943,325 am Total net position-ending $ 39,246,342 $ 3,688,833 $ 9,065,744 $52,000,919 $ 4,914,721 The notes to the financial statements are an integral part of this statement. on RM ww as 28 MR CITY OF EDGEWATER,FLORIDA t� Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30,2022 raq Business-type Activities-Enterprise Funds Governmental Malor Funds Activities- Waler/Sewer Solid Waste Stormwater Internal Service Utility Utility Utility Total Funds Milli Cash flows from operating activities: Receipts-customers and users $ 13,589,990 $ 3,794,383 S 2,306,273 S 19,690,646 5 6,411,246 Payments-suppliers (3,198,738) (1,887,049) (359,824) (5,445,611) (4,940,643) Payments-employees (7,677,922) (971,385) (720,181) (9,369,488) (537,830) Net cash provided(used)by operating activities 2,713,330 935,949 1,226,268 4,875,547 932,773 Cash flows from noncapital financing activities: Cash paid to other funds (1,073,734) (342,372) (224,469) (1,640,575) - Cash received from other funds(net) 10,650 - 10,650 - trq Net cash provided(used)by noncapital financing activities (1,063,084) (342,372) (224,469) (1,629,925) - Cash flows from capital and related financing activities: Acquisition and construction ofeapital assets (2,539,870) (269,900) (494,168) (3,303,938) (670,745) Py Proceeds from sale of capital assets - 57,743 - 57,743 Grant revenue 282,669 33,986 2,889 319,544 - Interest payments on debt (233,843) (10,084) (3,047) (246,974) (675) Capital contributions and fees 1,273,069 - - 1,273,069 - r� Principal paid on debt (1,457,621) (144,000) (54,589) (1,656,210) (10,934) Net cash provided(used)by capital and related financing activities (2,675,596) (332,255) (548,915) (3,556,766) (682,354) Cash flows from investing activities: Interest on investments 79,353 5,087 2,956 87,396 424 Purchase of investment securities 3,977,521 (4,517) (2,392) 3,970,612 Net cash provided(used)by investing activities 4,056,874 570 564 4,058,008 424 Net increase(decrease)in cash and cash equivalents 3,031,524 261,892 453,448 3,746,864 250,843 Plet Beginning cash and cash equivalents 13,610,681 3,021,314 2,935,299 19,567,294 3,133,612 Ending cash and cash equivalents S 16,642,205 S 3,283,206 $3,388,747 S 23,314.158 S 3,384,455 Reconciliation of operating income(loss)to net cash provided(used)by operating activities: Mn Operating income(loss) $ 3,361,542 S 638,232 $ 693,665 S 4,693,439 S 971,625 Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities: Depreciation and amortization 2,585,026 191,755 512,773 3,289,554 25,052 ref Miscellaneous revenues 109,883 10,681 3,813 124,377 - (increase)decrease in assets: Accounts receivable (147,083) (19,485) (22,207) (188,775) 3,246 Lease receivable (1,646,500) (1,646,500) - ram Inventories - - - 22,829 Prepaid items (7,421) - (7,421) (9,325) Increase(decrease)in liabilities: Accounts payable and accrued expenses 703,997 68,734 19,026 791,757 (87,60) P19 Lease liability 1,597,090 - 1,597,090 - Compensated absences (86,287) (7,565) 3,348 (90,504) 345 Net pension liability (300,430) (96,539) (23,169) (420,138) - Total OPER liability (3,460,237) 193,171 39,019 (3,228,047) 6,620 rE4 Customer deposits 3,750 (43,035) - (39,285) - Total adjustments (648,212) 297,717 532,603 182,108 (38,852) Net cash provided(used)by operating activities $ 2,713,330 S 935,949 S 1,226,268 S 4,875,547 S 932,773 Classified As: r+vi Cash and cash equivalents $ 13,074,389 S 3,283,206 S 3,388,747 S 19,746,342 S 3,384,455 Restricted cash and cash equivalents 3,567,816 - - 3,567,816 - TotaI S 16,642,205 S 3,283,206 S 3,388,747 S 23,314,158 S 3,384,455 The notes to the financial statements are an integral part of this statement. rAt 29 FM im CITY OF EDGEWATER,FLORIDA ,m Statement of Fiduciary Net Position Fiduciary Funds September 30,2022 Pension Trust Funds ASSETS Cash and cash equivalents $ 2,405 Accrued interest 102,830 Accounts receivable 3,872 Investments,at fair value: Money market funds 1,801,318 Bonds: US Treasury notes 1,559,604 GNMA/FMNA 2,049,690 Municipal bonds 127,110 Corporate bonds 7,235,313 �^ Mutual fund-fixed income 1,935,921 Mutual fund-equities 22,973,956 Commingled real estate fund 3,084,547 Total assets $40,876,566 NET POSITION Restricted for pensions $40,876,566 The notes to the financial statements are an integral part of this state 30 �* F" CITY OF EDGEWATER,FLORIDA Statement of Changes in Fiduciary Net Position Pension Trust Funds For the Fiscal Year Ended September 30,2022 Pension Trust Funds eR ADDITIONS Contributions: Employer $ 2,145,679 Mn Employee 253,682 State of Florida 396,803 Total contributions 2,796,164 rAa Investment earnings(loss): Interest and dividends 2,012,503 °q Net increase(decrease)in the fair value of investments (9,547,222) Total investment earnings (7,534,719) Less investment expenses (225,195) rmw' Net investment earnings(loss) (7,759,914) Total additions (4,963,750) ria DEDUCTIONS Pension benefits 3,619,720 r+ Administrative expenses 145,232 Total deductions 3,764,952 Change in net position (8,728,702) Net position-beginning of year 49,605,268 Net position-end of year $ 40,876,566 The notes to the financial statements are an integral part of this statement. MR MR rq 31 am CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (1) Summary of Significant Accounting Policies: The accompanying financial statements present the financial position, changes in financial position and cash flows of the applicable fund types governed by the City Council of the City of Edgewater, Florida ("the City") and have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The most significant of the City's accounting policies are described below. (a) Reporting entity The City of Edgewater was originally incorporated under general law on October 20, 1924. The City became the City of Edgewater and incorporated in 1951 as a political subdivision of the State of Florida and a municipal corporation with a five-member Council, A" including a Mayor and Vice-Mayor. The registered voters of the City of Edgewater elect the Mayor and Council. The Council appoints the City Manager,who in turn performs as the administrator of the everyday operations of the City.The City provides a full range of municipal services as directed by the City Charter including general government, public safety,public improvements,planning and zoning, water and sewer service, solid waste collection, a recycling program, a stormwater management utility program,and related general and administrative services to 23,855 residents. In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units.The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government (a)is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the �^ obligation to finance the deficits of, or provide financial support to, the organization; or (c)is obligated in some manner for the debt of the organization. In applying the above criteria, management has determined there is one component unit to be included within the reporting entity. dM The City of Edgewater, Florida,Edgewater Community Redevelopment Agency(CRA)was created by Ordinance No. 2015-0-04 to account for the receipt and expenditure of property tax revenues from the tax increment financing district to support City redevelopment in the designated community redevelopment area. The CRA's focus is mitigation or correction of infrastructure and utilities deficiencies, revitalization of the Ridgewood Avenue (US-1) corridor, various transportation and urban design improvements, and pedestrian safety issues. Although legally separate the City Council declared itself to be the CRA Board,and provided for the appointment of two additional members. Since the City is financially accountable for the activities of the CRA, its governing board is the same,and its relationship to the City is significant, its financial activities are reported on a blended basis as if it were part of the primary government as a major special revenue fund. Activity began in the CRA Fund during the fiscal year ended September 30,2016. 32 No mm CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (1) Summary of Significant Accounting Policies: (Continued) (b) Government-wide and Fund Financial Statements—The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the City. For the most part the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect expenses are included in the program expense FM reported for individual functions and segments. Program revenues include 1)charges to customers or applicants who purchase,use,or directly benefit from goods,services,or privileges provided by a given function or segment and 2)grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate fund financial statements are provided for governmental funds, proprietary funds, and A+ fiduciary funds,even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. (c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Grant funds received prior to the incurrence of eligible expenditures are reported as deferred revenues in the fund financial statements and are included in accounts payable and other current liabilities on the government-wide financial statements. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. When grant terms provide that an expenditure of resources is the prime factor for determining eligibility for Federal, State, and other grant resources, revenue is recognized at the time the expenditure is made. Expenditures generally are recorded when a liability FW is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded when payment is due. �+ Property taxes, franchise taxes,certain other tax revenues,intergovernmental revenues,licenses,and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when the City receives cash. ria r� 33 am r■ CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 MM (1) Summary of Significant Accounting Policies: (Continued) PM The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government,except those required to be accounted for in another fund. F' The Capital Projects Fund is used to account for the financial resources to be used for the acquisition or construction of major capital facilities(other than those financed by proprietary and F, trust funds). The Community Redevelopment Agency (CRA) Fund is used to account for the receipt and expenditure of property tax revenues from the tax increment financing district to support City 9M redevelopment in the designated community redevelopment area. The ARPA Economic Impact Fund is used to account for the receipt and expenditure of ARPA pa funding to support the City's recover from the COVID-19 pandemic. The City reports the following major proprietary funds: FM The Water and Sewer Utility Fund is used to account for the activities of the City's water and wastewater systems, which are financed similar to private business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are Ma financed through user charges. The Solid Waste Utility Fund accounts for the activities of the City's solid waste collection and recycling services. PM The Stormwater Management Utility Fund accounts for the activities of the City's stormwater management,conservation, protection,control,use and enhancement of stormwater. .. Additionally,the City reports the following fund types: The Special Revenue Funds account for specific revenue resources that are restricted by law or +� administrative action to expenditures for specific purposes. The Pension Trust Funds account for the activities of the Police Officers Pension Fund, the Firefighters Pension Fund and the General Employees' Pension Fund, which accumulate resources for pension benefit payments to qualified employees. The Internal Services Funds account for fleet management services, management information •w systems, general liability insurance, health insurance, workers' compensation insurance and the public works complex. As a rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Exceptions to the rule are payments-in-lieu of taxes and other charges between the government's water, sewer, and stormwater functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 34 n. sa CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS ,R SEPTEMBER 34,2422 (1) Summary of Significant Accounting Policies: (Continued) rw Amounts reported as program revenues include I)charges to customers or applicants for goods, services, or privileges provided, 2)operating grants and contributions, and 3)capital grants and contributions. Internal, dedicated resources are reported as general revenues rather than as program revenues. Likewise,general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water and Sewer Utility Fund, the Solid Waste Utility Fund, and the Stormwater Management Utility Fund are charges to customers for sales and services. The Water and Sewer ' Utility fund also recognizes as operating revenue the portion of impact fees intended to recover the cost of connecting new customers to the system. Operating expenses for the enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted – net position to have been depleted before unrestricted–net position is applied. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make use of estimates that affect reported amounts in the basic financial statements.Actual results could differ from estimates. Mot (d) Deposits and investments—The City's cash consists of cash on hand, demand deposits, and equity in pooled cash.The equity in pooled cash represents a fund's share of a cash pool maintained by the City for the use of all funds except the pension trust funds and funds that require separate bank accounts. For the statement of cash flows,the City considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. ,., Florida Statutes and/or the City's investment policy authorize the City to invest in the Local Government Surplus Funds Trust Fund Investment Pool, United States Government Securities, United States Government Agencies, Federal Instrumentalities, Interest Bearing Time Deposit or Saving Accounts, Repurchase Agreements, Commercial Paper, High Grade Corporate Notes, Bankers' Acceptances, State and/or Local Government Taxable and/or Tax-Exempt Debt, Registered Investment Companies (Money Market Mutual Funds), and Intergovernmental Investment Pools. Florida Statutes and/or the pension plans' investment policies allow the City's retirement plans' trustees to invest in time deposits, savings and money market deposit accounts of a national bank, a FM state bank insured by the Bank Insurance Fund, a savings/building and loan association insured by the Savings Association Insurance Fund, a state or federal chartered credit union whose share accounts are insured by the National Credit Union Share Insurance Fund; obligations issued by the United States Government or obligations guaranteed as to principal and interest by the United States rm� 35 am CITY OF EDGEWATER, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 PM (1) Summary of Significant Accounting Policies: (Continued) om Government or by an agency of the United States Government; stocks, bonds or other evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States or the District of Columbia; foreign stocks, bonds or other evidences of indebtedness; and real estate investments made through participation in diversified commingled funds of real properties. PM Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application (generally based on quoted market prices). Accordingly, the change fm in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. FLCLASS securities are valued at the amortized cost ,m of investments, which approximates fair value. Real estate assets are reported at fair value utilizing an income approach to valuation. Changes in the fair value during the year are included in investment income. The Local Governmental Surplus Funds Trust Fund (LGSF) is governed by Chapter 19-7 of the Florida Administrative Code which identifies the Rules of the State Board of `m Administration(SBA). These rules provide guidance and establish the general operating procedures for the administration of the LGSF. The LGSF is not a registrant with the Securities and Exchange Commission. The LGSF Pool's investments are recorded at amortized cost. The fair value of the Im City's position in the pool is the same as the value of the pool shares. (e) Receivables and payables Activity between funds that are representative of om lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/due from other funds" (i.e., the current portion of inter-fund loans) or "advances to/from other funds" (i.e., the non-current portion of inter-fund loans). All other outstanding balances between funds are reported as "due to/due from other funds." Any residual balances outstanding between governmental activities and business-type activities are reported in the government-wide financial statements as"internal balances." 00 Accounts receivable balances are shown net of the allowance for uncollectibles.The allowances are determined based on management estimates of uncollectible amounts. Advances between funds, as reported in the fund financial statements, are offset by nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. (f) Inventories and prepaid items—Inventories are valued at cost, using the first-in/first-out (FIFO)method.The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. Payments made to vendors for services that will benefit periods beyond the current fiscal year are recorded as prepaid items. Costs are recorded as expenditures when consumed rather than when purchased. (g) Restricted assets—Certain proceeds of revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet and statement of net position and their use is limited by applicable bond covenants. Restricted cash and investments in the enterprise funds represent debt issuance proceeds that are restricted assets for purchase of assets, +� construction and repayment of bonded debt respectively. In the enterprise fund statement of net position, bond issuance proceeds as well as other assets are set aside for their repayment and itemized in the restricted cash and investments. PM 36 +� mn rom CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS MR SEPTEMBER 30,2022 (1) Summary of Significant Accounting Policies: (Continued) A`' (h) Capital assets—In the Government Wide and Proprietary Fund financial statements, capital assets purchased or acquired are carried at historical cost or estimated historical cost. Contributed assets are recorded at acquisition value as of the date received. Donated capital assets, donated r+a works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. The City defines capital assets as assets with an initial, individual cost of more than $25,000 for infrastructure and building assets and more than $5,000 for all other capital assets, as well as an estimated useful life in excess of one year. The costs of normal `� maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. 1=9 The City has implemented the provisions of GASB Statement No. 34. In this process, infrastructure assets are being accounted for using different methods. For governmental activities, the cost or estimated cost of roads and sidewalks are presented. The City compiled this information and recorded all roads and sidewalks acquired after June 30, 1980, during the fiscal year ending PEI September 30, 2007. For business type activities, infrastructure assets have been capitalized at cost. Water and sewer utility improvements are being depreciated over their useful lives. The City has recorded all drainage infrastructure acquired including pre-GASB 34 assets. Major outlays for capital assets and improvements are capitalized as projects are constructed. In Governmental funds capital outlay(capital assets) are reported as expenditures and no depreciation expense is reported. Buildings and improvements, improvements other than buildings, and machinery and equipment (including assets amortized under lease purchase contracts) are amortized using the straight-line method over the following estimated useful lives: Assets Years Infrastructure 20–30 Years ro" Buildings and improvements 10–50 Years Improvements other than buildings 5–65 Years Machinery and equipment 3–35 Years rAq (i) Deferred outflows of resources—In addition to assets,the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future period(s) and so will not be recognized as an outflow of resources (expense/expenditure)until then. The City has three items that qualify for reporting as deferred outflows of resources, reported in ri both the government-wide statement of financial position and the proprietary funds statement of financial position.The first item is a deferred loss on refunding of debt which will be amortized and recognized as interest expense through the year ended September 30,2021.The other two items are the deferred outflows related to pensions and other post-employment benefits (OPEB) which are calculated in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The deferred outflows related to pensions and OPEB will be rwl� recognized as either pension/OPEB expense or a reduction in the net pensiorJtotal OPEB liability, respectively, in future reporting years. Details on the composition of deferred outflows related to pensions and OPEB are reported in subsequent notes. am� r++a 37 ow CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (1) Summary of Significant Accounting Policies: (Continued) (j) Compensated absences—The City records the vested portion of accumulated unused compensated absences at year-end based on each employee's unused hours and rate of pay, including the City's share of Social Security and Medicare taxes and pension costs.All compensated absences are accrued when earned in the government-wide and proprietary fund financial statements as accrued liabilities.A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The liability for compensated absences in the proprietary fund types is liquidated in the proprietary fund in which the liability originally incurred. (k) Long-term obligations—In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported jz1 as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expenses when paid. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs,during the current period.The face amount of debt issued is reported 'MP as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs, whether or not withheld from the actual debt proceeds received, are reported as debt service ,o expenditures. The compensated absences, net pension liabilities, and OPEB liabilities are liquidated by the reporting units of the underlying employees, including the general fund,governmental funds,and all im proprietary funds where the respective liability is reported. (1) Deferred inflows of resources—In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element,deferred inflows of resources, represents an acquisition of net assets that applies to future period(s)and so will not be recognized as an inflow of resources(revenue)until that time. Currently,the City has three items that qualify for reporting as deferred inflows of resources,in both the government-wide statement of financial position and the proprietary funds statement of financial position.The first two items are the deferred inflows related to pensions and other post-employment benefits(OPEB),which are calculated in accordance with GASB Statement No.68,Accounting and Financial Reporting for Pensions and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The deferred inflows related to pensions and OPEB will be recognized as a component of expense in future reporting years. The third item is deferred inflows related to leases, which is calculated under GASB Statement No. 87, Leases. Lease-related amounts are recognized at the inception of leases in which the City is the lessor. The deferred inflow of resources is recorded in an amount equal to the corresponding lease .o receivable plus certain additional amounts received from the lessee at or before the commencement of the lease term that relate to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. The inflow of resources is recognized in a systematic and rational manner over the term of the lease. Details on the composition of deferred inflows related to pensions,OPEB, and leases are reported in subsequent notes. 38 �+ ram CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (1) Summary of Significant Accounting Policies: (Continued) (m) Fund balance—In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The following classifications describe the relative strength of the spending constraints: Nonspendable fund balance –amounts that are not in spendable form (such as prepaid expenses and advances due from other funds)or are required to be maintained intact. Restricled fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions or by r� enabling legislation. Committed fund balance –amounts constrained to specific purposes by the City itself, using its highest level of decision-making authority (City Council). To be reported as committed, amounts cannot be used for any other purpose unless the City takes the same highest level action to remove or change the constraint.City Council establishes(and modifies or rescinds)fund balance commitments by passage of a resolution. Assigned fund balance – amounts the City intends to use for a specific purpose. Intent can be expressed by the City Council or as delegated to the City Manager. The City Council has by resolution authorized City management to assign fund balance. The City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not P14 normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. Unassigned fund balance – amounts that are available for any purpose. Positive amounts are `'' reported only in the general fund or the fund balance for any special revenue, debt service, or capital projects fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. PIM Disbursements of fund balances will first be made from restricted amounts when both restricted and unrestricted fund balance is available. Additionally, the City will first use committed fund balance, followed by assigned fund balance, and then unassigned fund balance when expenditures are Mn incurred for purposes which amounts in any of the unrestricted fund balance classifications could be used. N., (n) Net position flow assumption—In order to determine amounts reported as restricted and unrestricted net position, it is the City's policy to consider restricted net position to have been used before unrestricted net position is applied. °"n (o) Pensions—For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's defined benefit retirement plans, as described in Note 1 I(c),and additions to/deductions from the pension plans' fiduciary net position have been determined on the same basis as they are reported by the pension plans. For this purpose, benefit payments(including refunds of employee contributions)are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. 39 im FM CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (1) Summary of Significant Accounting Policies: (Continued) (p) Leases--The City is both a lessee and a lessor in various lease agreements. Lessee: The City currently leases office equipment and determines if an arrangement is a lease at inception. The City recognizes intangible right-to-use (RTU) assets and corresponding lease liabilities for all leases that are not considered short-term. RTU assets represent the City's right to use an underlying asset for the lease term and lease liabilities represent the City's obligation to make lease payments arising from the lease. RTU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Basis of lease classification— Leases that meet the following requirements will not be considered short term: (1) the maximum possible lease term(s) is non-cancelable by both lessee and lessor,and is more than 12 months,and(2)the present value of lease payments for the lease is less than$5,000. Discount Rate — Unless explicitly stated in the lease agreement, known by the City, or the City is able to determine the rate implicit within the lease, the discount rate used to calculate lease right-to- use assets and Iiabilities will be the City's incremental borrowing rate(IBR), which will be the rate utilized for the subsequent fiscal year. The City's IBR was calculated at 2.530% at September 30, 2021, and was the discount rate utilized for applicable leases beginning October 1, 2021 and applicable lease conversions. The City's lessee agreements do not contain any material residual value guarantees or material restrictive covenants. Lessor: The City is the lessor of a building and of cell towers and determines if an arrangement is a lease at inception. The City recognizes lease receivables and corresponding deferred inflows for all leases that are not considered short-term. Lease receivables represent the City's right to receive lease payments arising from the lease. Deferred inflows represent resources recorded in an amount equal to the corresponding lease receivable plus certain additional amounts received from the lessee PER at or before the commencement of the lease term that relate to future periods. Subsequently, the lease receivable is reduced by the principal portion of lease payments received,and deferred inflow of resources are recognized as revenue over the life of the lease term. WQ Basis of lease classification — Leases that meet the following requirements will not be considered short term: (1)the maximum possible lease term(s)is non-cancelable by both lessee and lessor,and is more than 12 months,and(2)the present value of lease payments for the lease is less than$5,000. Discount Rate — Unless explicitly stated in the lease agreement, known by the City, or the City is able to determine the rate implicit within the lease, the discount rate used to calculate lease receivable will be the City's incremental borrowing rate(IBR), which will be the rate utilized for the subsequent fiscal year. The City's IBR was calculated at 2.530% at September 30, 2021, and was the discount rate utilized for applicable leases beginning October 1, 2021 and applicable lease conversions. A The City's lessor agreements do not contain any material residual value guarantees or material restrictive covenants. 40 FM aM MR CITY OF EDGEWATER, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (2) Reconciliation of Government-wide and Fund Financial Statements: as (a) Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position—The governmental fund balance sheet includes reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. (b) Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures,and Changes in Fund Balances and the Government-wide Statement of Activities—The governmental fund statement of revenues, expenditures, and changes in fund balance includes reconciliation between net change in fund balance–total governmental funds and change in net position of governmental activities as reported in the government-wide statement of `a' activities. (3) Stewardship, Compliance and Accountability: (a) Budgetary information—The annual operating budgets are adopted by City Council using the following procedures; Annual budgets are adopted for all funds of the City except for the Pension Trust funds that are effectively controlled through governing agreements and related City ordinances. The annual operating budgets are prepared on a basis consistent with accounting principles generally accepted in the United States of America. Annual budget appropriations lapse at the end of each fiscal year, except for unexpended appropriations on open grant programs and capital projects, which are carried forward in subsequent annual budgets. Encumbrance accounting is employed in governmental funds. Encumbrances represent open purchase orders and other commitments for goods/services that are not yet received and are recorded to reserve that portion of the applicable appropriation.Encumbrances are recognized as expenditures �+ in the period in which the actual goods/services are received and a liability is incurred. Encumbrances outstanding at year-end are canceled and re-appropriated in the succeeding year's budget;such amounts,if material,are disclosed in the notes as commitments. Prior to the first day of August of each year, the City Manager prepares a recommended budget for the next succeeding fiscal year and submits it to the City Council. The recommended budget includes proposed expenditures and the source of receipts to finance them. City Council holds a series of budget workshops in addition to a minimum of two public hearings on the proposed budget and adopts the official annual budget of the City, by ordinance, prior to FXM September 30. The budget,as adopted, may only be amended through formal approval by City Council. Budgetary integration is established in the accounting records for control purposes at the object of expenditure r=1 level; however, the City Charter establishes the level at which expenditures may not legally exceed budget at the fund level. Therefore, the City Manager may transfer budgeted amounts within and between departments of the City without formal approval by City Council. rM o+i 41 om Pq CITY OF EDGEWATER, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 ,m (3) Stewardship,Compliance and Accountability: (Continued) (b) Ad valorem property taxes—Under Florida law, the assessment of all properties and the collections of all county, municipal, and school board property taxes are consolidated in the offices of the County Property Appraiser and the County Tax Collector. Florida Statutes regulating tax assessment are also designed to assure a consistent property valuation method statewide. State Statutes permit cities to levy property taxes at a rate of up to ten(10)mills_ For the fiscal year ended September 30, 2022, the millage rate in effect was 6.7000. Additionally, the Edgewater I&S 2005 voted debt millage was .0301 and the Edgewater Parks voted millage rate was .1983 for a total millage of 6.9284. The tax levy of the City is established by the City Council prior to October 1 of each year and the Volusia County Property Appraiser incorporates the millage into the total tax levy, which includes the municipalities,independent districts and the County School Board tax requirements. Property taxes are levied in November and attached as a lien on property as of January 1 of each year. All unpaid taxes become delinquent on April I following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% for payments received in the month of November, 3% for payments received in the month of December, 2%for payments received in the , month of January and 1%for payments received in the month of February. The taxes paid in March are not subject to discount. Tax certificates on all property for which taxes are delinquent are sold on or about June 1 of each year. (c) Connection fees and impact fees—Water and sewer connection fees represent reimbursement of the costs incurred to perform the connection of the respective utilities. These fees are recorded as non-operating revenue at the time of service. Impact fees, which are not considered connection fees since they substantially exceed the cost of connection,are recorded as non-operating revenue in the period earned in the appropriate Enterprise Fund. (d) Reserve policy—The City Council has approved a reserve policy, which was adopted within the City Charter.The policy addresses that the City is required to maintain reserves at a minimum of 15 percent for all operating funds. The reserve minimum is established based on a percentage of current years' budgeted operating expenditures and transfers out. Reserve levels above the minimum are deemed to be available for capital or other lawful purposes. (4) Deposits and Investments: (a) Deposits—At September 30, 2022, the carrying amount of the City's bank deposits was $41,851,619.The bank balances at September 30,2022, were$41,936,664,all of which was held by a bank that qualifies as a public depository, as required by Chapter 280 of the Florida Statutes. All of the deposits were covered by the FDIC or collateralized in accordance with the"Florida Security for Public Deposits Act". Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral having a fair value equal to 50% of the average daily balance for each month that all public deposits are in excess of any applicable deposit insurance. If the public deposits exceed the total amount of the regulatory capital accounts of a bank or the regulatory net worth of a savings association, the required collateral shall have a fair value equal to 125% of the +� deposits. Of the bank balance, no amount was uninsured and uncollateralized in banks or savings and loans not qualifying under the Act at September 30,2022. 42 fop ate► CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (4) Deposits and Investments: (Continued) (b) Investments—The City Council formally adopted a comprehensive investment policy pursuant to Section 218.415,Florida Statutes that established permitted investments,asset allocation limits and issuer limits,credit ratings requirements and maturity limits to protect the City's cash and investment assets.The City maintains a cash and investment pool for the use of all funds except the pension trust funds and funds that require separate bank accounts. The City's investment policy allows for the following investments: Local Government Surplus Funds Trusts (SBA), SEC registered money market funds, interest-bearing time deposits or savings accounts,direct obligations of the U.S.Treasury, Federal agencies and instrumentalities, Securities of, or other interests in, any open-end or closed-end management-type investment company or investment trust registered under the Investment Company Act of 1940, Intergovernmental Investment Pools (FLCLASS), and Other investments authorized by ordinance. The City invests in the Local Government Investment Pool (State Pool). The State Pool is administered by the Florida Prime Investment Pool, who provides regulatory oversight. Florida Prime Investment Pool (Florida PRIME)is similar to money market funds in which units are owned in the fund rather than the underlying investments. The City also invests in the Florida Cooperative Liquid Assets Securities System (FLCLASS) administered by Public Trust Advisors, LLC. These investments are reported at amortized cost and meet the requirements of GASB Statement No.31,as amended by GASB Statement No. 79, Certain External Investment Pools and Pool Participants, which establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. There is no r1t limitation or restrictions on withdrawals from Florida PRIME or FLCLASS; although in the occurrence of an event that has a material impact on liquidity or operations of the trust fund, the funds' executive director may limit contributions to or withdrawals from the trust fund for a period of 48 hours. Investments of the defined benefit pension plans consist principally of debt and equity mutual funds, all of which are authorized by the plans. The City measures and records its investments, assets whose use is limited, and restricted assets using fair value measurement guidelines established by GAS3.The City has not changed valuation techniques since the prior year. These guidelines recognize a three-tiered fair value hierarchy, as follows: • Level l: Quoted prices for identical investments in active markets; • Level 2: Observable inputs other than quoted market prices;and, • Level 3: Unobservable inputs. As of September 30, 2022, the City had the following investments, effective duration presented in terms of years, and fair value hierarchy level: Investment Maturities(in Years) Fair Value Less More Credit Hierarchy Investment Type Fair Value Than 1 1-5 6-10 Than 10 Rating Level r•� Government-wide: Investments subject to rate risk: FL Prime S 16,924,096 S 16,924,096 $ - $ - $ - AAAm N/A FLCLASS 523,648 523,648 - - - AAAm N/A Total government-wide investments S 17,447,744 S 17,447,744 S - $ - $ - r 43 anq PA CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 IN„ (4) Deposits and Investments: (Continued) Pa Investment Maturities(in Years) Less Mare Credit Fair Value Investment Type Fair Value Than 1 1-5 6-10 Than 10 Rating Hierarchy Level ME Fiduciary funds: Investments subject to rate risk: Money market funds and cash S 1,803,723 $ 1,803,723 $ - $ - $ - N/A 1 Bonds: Pa US treasury notes 1,559,604 484,326 - 559,650 515,628 N/A 1 GNMA 2,049,690 - 154,203 55,697 1,839,790 N/A 2 Municipal obligations 127,110 74,970 - 52,140 - * 2 Corporate bonds 7,235,313 857,066 3,112,430 2,116,446 1,148,971 ** 2 12,775,440 $ 3,220,085 $ 3,267,033 $ 2,783,933 $3,504,389 Other investments: Corporate equities 12,286,056 Mutual funds—equity 10,687,900 1 Mutual funds—fixed income 1,935,921 1 Commingled real estate 3,084,547 3 Total fiduciary investments 40,769,864 Total City investments $ 58,217,608 "" *--The Standard and Poor's credit rating is A-and Moody's credit rating is A2 for the Municipal Obligations. **—The Standard and Poor's credit ratings range from BB to AA+and Moody's credit ratings range from BA3 to AAA for the Corporate bonds. The following is a description of the valuation techniques used for assets measured at fair value: US treasury notes, GNMA,and Municipal obligations—Valued based on a matrix pricing model. Corporate Bonds Valued based on a matrix pricing model. P. Corporate Equities and Mutual Funds Valued at fair value based on quoted market prices at year end. Money Market Funds—Valued at the underlying fund balance. Units in the American Core Realty Fund(the Core Fund)are offered and sold by means of a private placement offering conducted in compliance with Rule 506 of Regulation D under the Securities Act of 1933, as amended. The: Core Fund is an open-end diversified core commingled real estate fund that invests in private real estate and is structured as a Delaware limited partnership. As a result, the City of Edgewater Police Officers' and General Employees' Retirement Plans own units in the Core Fund,and the Core Fund holds no securities on behalf of the Retirement Plan's account P, in the Core Fund. As of September 30,2022,the Retirement Plans held 9.3576 and 9.7410 units for the Police Officers' and General Employee's Retirement Plans, respectively.The net asset value on that date was $1,511,314 and $1,573,233 for the Police Officers' and General Employee's Po Retirement Plans,respectively. Units are purchased and redeemed through periodic transactions and the value of the units purchased or sold in such transactions is based on the unit value applicable to the valuation date at which each individual transaction occurred. Phi ow 44 ON rx" r� CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (4) Deposits and Investments: (Continued) As of September 30, 2022, all of the Core Fund's investments were categorized as Level 3. Valuation techniques used to determine fair value for the assets in the Core Fund vary based on the asset category and include discounted cash flow, direct capitalization sales approach, and cash equivalency. Requests for redemptions of units in the American Core Realty Fund may be made at any time,with ri 10 business day's notification by submitting a Redemption Notice form signed by a representative of the City of Edgewater Police Officers' and General Employees' Retirement Plans, and are effective at the end of the calendar quarter in which the request is received by American Realty Advisors (ARA). The units that are subject to a redemption notice may be redeemed in full or in installments on a pro-rata basis as funds become available for such purpose and the redemption price will be the value per unit based on ARA's estimate of the fair value of the Core Fund's net assets as computed under generally accepted accounting principles at such time that each payment is made. Although ARA is required to use reasonable efforts to cause the Core Fund to pay the redemption price as soon as practicable after the effective date of the request, redemptions are subject to the availability of cash flow arising from investment transactions, sales and other fund r� operations occurring in the normal course of business.ARA is not required to liquidate or encumber assets or defer investments in order to satisfy redemption requests. As of September 30,2022,there were no unfunded commitments. Interest rate risk—The City's investment policy does not specifically address interest rate risk; however,the general investment policy is to apply the prudent-person rule: Investments are made as P09 a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and in general, avoid speculative investments. The City manages its exposure to declines in fair values by investing primarily in pooled investments that have a weighted pq average maturity of one year or less,with a special provision allowing up to 20%of the investment portfolio to have a maturity of not more than five years. Credit risk—The City's investment policy limits credit risk by restricting authorized investments to '1 those described above. Also, the policy requires that investments held are to be diversified to the extent practicable to control the risk of loss resulting from over concentration of assets in a specific maturity,issue, instrument,dealer or bank through which financial instruments are bought and sold. M9 Custodial credit risk—The City's investment policy pursuant to Section 218.415(18), Florida Statutes requires securities,with the exception of certificates of deposits,shall be held with a third- Fm party custodian; and all securities purchased by, and all collateral obtained by the City should be properly designated as an asset of the City. The securities must be held in an account separate and apart from the assets of the financial institution. A third-party custodian is defined as any bank depository chartered by the Federal Government, the State of Florida, or any other state or territory of the United States which has a branch or principal place of business in the State of Florida,or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is doing business in the State of Florida. Certificates of deposits will be placed in the provider's safekeeping department for the term of the deposit. 45 FM PM CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 P, (4) Deposits and Investments: (Continued) As of September 30, 2022, the City's investment portfolio was held with a third-party custodian as required by the City's investment policy. The City's investment policy requires that time deposit investments be made only with banking institutions that are members of the State of Florida collateral pool. Florida Statutes authorize,and the state administers,a collateral pool that ensures no .q loss of public funds. Concentration of Credit Risk—The City's investment policy requires diversification, but does not specify limits on types of investments. (5) Receivables: Receivables as of year-end including the applicable allowances for uncollectible accounts are as follows: Capital Nonma jor *" General Projects CRA Funds Total Governmental Funds Accounts $ 582,282 $ - $ 10 $ 53 $ 582,345 *'* Intergovernmental 1,536,038 399,018 - 2 1,935,058 Leases 146,993 - - - 146,993 Interest 310 - - - 310 ,.4 Gross receivables 2,265,623 399,018 10 55 2,664,706 Less:Allowance for uncollectible (8,396) - - - (8,396) Net total receivables $ 2,257,227 $ 399,018 $ 10 $ 55 $ 2,656,310 PER Water/ Solid Waste Stormwater Internal Sewer Utility Utility Utility Service Total Proprietary Funds '" Accounts $ 2,299,771 $ 621,889 $ 387,888 $ 40 $ 3,309,588 Intergovernmental 172,517 120,414 42,098 - 335,029 Special assessments 141,623 - - - 141,623 am" Leases 1,643,036 - - - 1,643,036 Interest 3,464 - - - 3,464 Gross receivables 4,260,411 742,303 429,986 40 5,432,740 Less:Allowance for uncollectible (447,250) (118,011) (92,293) - (657,554) Iwo Net total receivables $ 3,813,161 $ 624,292 $ 337,693 $ 40 $ 4,775,186 Governmental funds report deferred inflows in connection with receivables for revenues that are not OR considered to be available to liquidate liabilities in the current period. No such deferred inflows are reported as of September 30,2022. Governmental and proprietary funds also defer revenue recognition and report unearned revenue in IMP connection with resources that have been received, but not yet earned. At the end of the fiscal year, unearned revenue, in the amount of$90,071, reported in the major and non-major governmental funds was unearned business tax receipts. Such amounts have also been included as current Iiabilities on the ow government-wide financial statements. At the end of the fiscal year, unearned revenue, in the amount of $1,979,418,reported in the water and sewer utility fund was unearned receipts from the American Rescue Plan Act(ABPA)and not yet expended. , 46 M MR CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS PM SEPTEMBER 30,2022 (6) Interfund Loans Advances and Transfers: The composition of Interfund balances as of September 30,2022, is as follows: There were no due from/to other funds or advances from/to other funds. Interfund transfers were comprised of the following: Transfers are used to 1)move revenues from the fund with collection authorization to the fund that statute or budget requires expending them and, 2) move unrestricted fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations. Transfers from the enterprise funds to the general fund are in lieu of franchisee fees. Transfers In General Debt Capital Water Public Fund Service Projects Sewer Works Total Transfers Out: General Fund $ - $ 161,013 $ 818,683 $ - $ 88,500 $ 1,068,196 CRA - - - 10,650 - 10,650 Recreation Impact - - 38,669 - - 38,669 Enterprise: Water Sewer 778,734 - - - 295,000 1,073,734 Solid Waste 224,372 - - - 118,000 342,372 Stormwater 135,969 - - - 88,500 224,469 Total $ 1,139,075 $ 161,013 $ 957,352 $ 10,650 $ 590,000 $ 2,758,090 ►•a FXq r� 47 ^ ^ CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (7) Capital Assets: Capital asset activity for the year ended September 30,2022,was as follows: Beginning Ending Balance Increases Decreases Balance ^ Governmental activities: Capital assets,not being depreciated Land $ 26,226,752 $ - $ - $ 26,226,752 Construction in progress 596,091 1,375,951 (126,297) 1,845,745 ^ Total capital assets,not being depreciated 26,822,843 1,375,951 (126,297) 28,072,497 Capital assets,being depreciated Buildings 8,256,467 16,925 - 8,273,392 ^ Improvements other than buildings 26,060,407 126,297 - 26,186,704 Machinery and equipment 7,079,151 291,975 - 7,371,126 Infrastructure 61,538,602 - - 61,538,602 Right-to-use assets - 78,109 - 78,109 ^ Total capital assets,being depreciated 102,934,627 513,306 - 103,447,933 Less accumulated depreciation Buildings (5,009,758) (230,542) - (5,240,300) Improvements other than buildings (15,815,049) (688,048) - (16,503,097) Machinery and equipment (4,972,119) (527,704) - (5,499,823) Infrastructure (55,868,542) (524,544) - (56,393,086) Right-to-use assets - (20,376) - (20,376) Total accumulated depreciation (8105,468) (1,991,214) - (83,656,682) Total capital assets,being depreciated,net 21,269,159 (1,477,908) - 19,791,251 Governmental activities capital assets,net $ 48,092,002 $ (101,957) $ (126,297) $ 47,863,748 r� Beginning Ending Balance Increases Decreases Balance ^, Business-type activities: Capital assets,not being depreciated Land $ 1,397,173 $ - $ - $ 1,397,173 Construction in progress 1,479,755 2,459,675 (2,481,738) 1,457,692 Total capital assets,not being depreciated 2,876,928 2,459,675 (2,481,738) 2,854,865 Capital assets,being depreciated Buildings 24,025,550 - - 24,025,550 Improvements other than buildings 66,084,187 1,478,756 - 67,562,943 Machinery and equipment 14,900,338 1,814,718 (250,271) 16,464,785 Right-to-use assets - 32,527 - 32,527 ^ Total capital assets,being depreciated 105,010,075 3,326,001 (250,271) 108,085,805 Less accumulated depreciation Buildings (19,864,723) (443,867) - (20,308,590) Improvements other than buildings (32,179,444) (2,073,801) - (34,253,245) Machinery and equipment (11,108,442) (763,401) 230,528 (11,641,315) Right-to-use assets - (8,485) - (8,485) Total accumulated depreciation (63,152,609) (3,289,554) 230,528 (66,211,635) Total capital assets,being depreciated,net 41,857,466 36,447 (19,743) 41,874,170 Business-type activities capital assets,net $ 44,734,394 $ 2,496,122 $ (2,501,481) $ 44,729,035 ^ 48 PER CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS mm SEPTEMBER 30,2022 (7) Capital Assets: (Continued) MM Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 134,759 Public safety 496,798 Transportation/public works 893,583 Parks and recreation 441,022 Capital assets held by the City's internal service funds are charged to the various functions based on their usage of 25,052 the assets Total depreciation expense—governmental activities $ 1,991,214 Business-type activities: Water Sewer Utility $ 2,585,026 Solid Waste Utility 191,755 Stormwater System 512,773 wn Total depreciation expense—business-type activities $ 3,289,554 (8) Leases: (a) City as Lessor—The City is the lessor in five lease agreements for one building facility and four cell towers. A lease receivable and deferred inflow of resources was recorded for each of these leases. In 2014, the City entered into a lease agreement with the Volusia/Flagler Family Young Men's Christian Association, Inc. (the "YMCA") for the leasing and reimbursement for the expansion of, certain buildings and facilities located at Hawks Park Recreational Complex, which may be renegotiated and renewed at the request of the City Council or the YMCA Board at any time, provided any amendments are in writing and executed by both parties. Based on the terms of the agreement, the initial ten-year lease began on April 1, 2014, and is scheduled to expire on May 1, 2025, with an option to renew for two additional ten-year periods provided the parties mutually agree on the terms at the time of renewal. Annual rentals under the lease agreement include minimum monthly payments of $3,779 until April 1, 2024 when the payment shall increase to $5,779 per month. For the year ended September 30, 2022, the City recognized $49,189 in lease revenue and $4,193 in interest revenue related to this lease. As of September 30, 2022, the City's receivable for lease payments was $146,993 and for interest payments was$310.Also,the City has ,.q a deferred inflow of resources associated with this lease that will be recognized over the lease term. As of September 30,2022,the balance of the deferred inflow of resources was$135,27 1. The principal and interest requirements to maturity for this lease as of September 30, 2022, are as follows: r;+ 49 PM CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (8) Leases: (Continued) Year Ending September 30, Principal Interest Total Payments 2023 $ 42,117 $ 3,233 $ 45,350 2024 59,078 2,051 61,129 2025 45,798 436 46,234 Total future minimum lease payments $ 146,993 $ 5,720 $ 152,713 In 2006, 2007, 2008, and 2014, the City entered into lease agreements with MetroPCS, Sprint, T- Mobile, and Vertex for the leasing of cell towers owned by the City. Based on the terms of the agreements, each lease is for an initial five or ten-year term with four additional five-year renewal periods. For the year ended September 30, 2022,the City recognized$119,177 in lease revenue and $42,388 in interest revenue related to these leases. As of September 30, 2022, the City's receivable for lease payments was $1,643,036 and for interest payments was $3,464. Also, the City has a FOR deferred inflow of resources associated with these leases that will be recognized over the lease terms.As of September 30,2022,the balance of the deferred inflow of resources was$1,597,090. The principal and interest requirements to maturity for these leases as of September 30,2022,are as o' follows: _ Year Ending September 30, Principal Interest Total Payments 2023 $ 75,786 $ 40,702 $ 116,488 2024 82,280 38,710 120,990 2025 89,116 36,550 125,666 FM 2026 96,311 34,213 130,524 2027 103,880 31,689 135,569 2028-2032 610,661 113,604 724,265 ,.., 2033-2037 209,192 60,010 269,202 2038-2042 251,180 32,745 283,925 2043-2045 124,630 3,339 127,969 Total future minimum lease payments $ 1,643,036 $ 391,562 $ 2,034,598 (b) City as Lessee-The City is the lessee in one lease agreement for copier equipment for both the General Fund and the Water Sewer Fund. A lease liability and a right-to-use asset was recorded for this lease in each of those funds. In 2020, the City entered into a 63 month lease agreement with Dex Imaging for the use of copier equipment valued at $110,636. A right-to-use asset and initial lease liability was recorded by the City during the current fiscal year. As of September 30, 2022, the value of the lease liability was $82,626. The City is required to make monthly principal and interest payments of $2,521. The City's IBR was calculated at 2.530% at September 30, 2021, and was the discount rate utilized in the current year for this lease. The equipment has a seven-year estimated useful life. The value of the right-to-use assets as of September 30,2022 was$110,636 and had accumulated depreciation of $28,861. 50 CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS rM9 SEPTEMBER 30,2022 (8) Leases: (Continued) Lease expense for the right-to-use assets for the years ended September 30,2022 was as follows: September 30,2022 Governmental Business-type Activities Activities Equipment depreciation expense $ 20,376 $ 8,485 Interest on lease liabilities 1,704 710 Fln Total $ 22,080_ $ 9195 The principal and interest requirements to maturity for the lease liability as of September 30,2022, �+ is as follows: Governmental Activities Year Ending September 30, _ Principal Interest Total Payments 2023 $ 20,113 $ 1,244 $ 21,357 2024 20,628 729 21,357 2025 17,593 205 17,797 Total future minimum lease payments $ ^ 58,334 $ 2,177 $ .� 60,511 Business-type Activities Year Ending September 30, Principal Interest Total Payments 2023 $ 8,376 $ 518 $ 8,894 2024 8,590 304 8,894 2025 7,326 85 7,411 Total future minimum lease payments $ 24,292 $ 907 $ 25,198 (9) Loup--term Debt: Notes Payable During the year ended September 30,2019,the City executed an agreement with the Florida Department of Environmental Protection(FDEP)to borrow up to $4,533,200, at an interest rate of 3.2% through the State Revolving Fund (SRF) loan program, for the purpose of financing the construction of wastewater pollution control facilities. During the fiscal year 2020, the total amount awarded was reduced by $759,402. The revised total amount awarded is $3,773,798 plus capitalized interest. The loan is payable semi-annually beginning on February 15,2021.The loan will have semi-annual payments of$103,341 on February 15 and August 15 each year until all amounts due under the agreement have been fully paid.The amount of the loan issued and outstanding at year-end is as follows: Interest Rates Original Outstanding and Dates Maturity Amount Balance Business-type activities: Clean Water State Revolving .63% Fund Loan Agreement (2115 and 8115) 8/15/2040 $ 3,773,798 $ 3,508,675 r+� 51 mm CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (9) Long-term Debt: (Continued) fin Annual requirements to amortize the State Revolving Fund loan outstanding as of September 30, 2022, are as follows: Year Ending Business-Type Activities September 30, Principal Interest 2023 $ 184,520 $ 22,161 2024 185,703 20,978 2025 186,894 19,788 2026 188,092 18,590 2027 189,297 17,384 2028-2032 964,844 68,561 2033-2037 996,168 37,238 2038-2040 613,158 6,886 $ 3,508,675 $ 211,586 The General Obligation Note, Series 2017, was issued on April 5, 2017, in the amount of$3,436,000 to finance certain acquisitions and capital improvements consisting of the engineering, permitting, construction, expansion, and renovation of city recreational areas, facilities, parks, and related amenities. PM The loan will have annual payments due on July 1. The interest rate on the note is 3.06%and maturity is on July 1,2036.The original amount of the note issued and outstanding at year-end is as follows: MM Interest Rates Original Outstanding and Dates Maturity Amount Balance Governmental activities: am General Obligation Note 3.06% Series 2017 (7/1) 7/1/2036 $ 3,436,000 $ 2,68I,000 Annual requirements to amortize the General Obligation Note outstanding as of September 30, 2022, are ow as follows: Year Ending Governmental Activities .* September 30, Principal Interest 2023 $ 156,000 $ 82,039 2024 161,000 77,265 2025 166,000 72,338 2026 171,000 67,259 2027 176,000 62,026 2028-2032 966,000 225,859 2033-2036 885,000 68,728 $ 2,681,000 $ 655,514 ,A 52 0" CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (9) Long-term Debt (Continued) The Capital Improvement Revenue Note, Series 2017, was issued on June 19, 2017, in the amount of $2,000,000 to finance the acquisition of approximately 27 acres of land for the construction of a public waterfront park and related amenities. The loan will have semi-annual payments due on June 1 and December 1.The interest rate on the note is 2.47%and maturity is on June 1,2032. The original amount of the note issued and outstanding at year-end is as follows: Interest Rates Original Outstanding and Dates Maturity Amount Balance Governmental activities: r� Capital Improvement Revenue 2.47% Notes Series 2017 (611 and 1211) 6/1/2032 $ 2,000,000 $ 1,416,000 The Capital Improvement Revenue Note resolution provides for: 1) Establishment of a debt covenant to not issue additional obligations secured by the pledged revenues unless the aggregate amount of the pledged revenues received during the 12 months consecutive designated by the City within 24 months immediately preceding the date of delivery of such additional obligation equals at least 1.35 times the maximum annual debt service on all debt secured or payable from the pledged revenues, including debt service on the proposed additional obligations to be issued. 2) Pledged revenues consist of half cent state sales tax. � Annual requirements to amortize the Capital Improvement Revenue Note outstanding as of September 30, 2022,are as follows: Year Ending Governmental Activities September 30, Principal Interest 2023 $ 127,000 $ 34,975 run 2024 130,000 31,838 2025 133,000 28,627 2026 136,000 25,342 ME) 2027 139,000 21,983 2028—2032 751,000 56,588 $ 1,416,000 $ 199,353 53 FM CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 FE4 (9) Lone-term Debt: (Continued) Pon During the year ended September 30, 2017, the City executed an agreement with FDEP to borrow up to $336,500 at an interest rate of 3.15%through the State Revolving Fund loan program, for the purpose of financing the design of wastewater pollution control facilities.The agreement allowed the City to borrow up to $336,500 at an interest rate of 3.15%. The loan is payable semi-annually in the amount of Loan "M payments with payments beginning on September 15,2018.The loan will have semi-annual payments of $9,178 on March 15 and September 15 each year until all amounts due under the agreement have been fully paid.The total amount of funding received during fiscal year 2017 was$305,848 with the remaining rs amount received in fiscal year 2018. The amount of the loan issued and outstanding at year-end is as follows: Interest Rates Original Outstanding and Dates Maturity Amount Balance Business-Type activities: Clean Water State Revolving 3.15% Fund Loan Agreement (3/15 and 9/15) 3/15/2038 $ 336,500 $ 270,821 Annual requirements to amortize the State Revolving Fund loan outstanding as of September 30, 2022, are as follows: Year Ending Business-Type Activities September 30, Principal Interest 2023 $ 16,687 $ 1,680 2024 16,792 1,575 2025 16,898 1,469 2026 17,005 1,362 2027 17,112 1,255 2028—2032 87,193 4,640 2033—2037 89,979 1,855 2038 9,155 29 $ 270,821 $ 13,865 In 2016,the City issued Water and Sewer Revenue Refunding Note, Series 2016: Original amount issued $10,000,000 Issue date February 29,2016 Final maturity October 1,2026 Interest due April 1 and October 1 Interest rate Fixed--2.30% The Utility System Refunding Revenue Note is secured by a first lien on and pledge of the net revenues of the City's water,wastewater and stormwater utility systems and a first lien on and pledge of allowable impact fees imposed on new users of the systems. The Utility System Refunding Revenue Note resolution provides for: "a (1) Establishment and maintenance of various funds and accounts 54 r4 P" n•o CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS „q SEPTEMBER 30,2022 (9) Long-term Debt; (Continued) (2) Restrictions on the use of cash from operations in order of priority (a) Deposits are made to the operations and maintenance fund each month in an amount which will pay the costs of operation and maintenance for the next month; (b) Deposits to the sinking fund are made monthly in an amount equal to one-sixth(116)of the interest coming due on the next semi-annual interest payment date and one-twelfth rte, (IA 2)of the bond amortization installment coming due during the next year; (c) Deposits to the reserve fund are required to make up any deficiency in its balance as compared to the reserve equipment; (d) Deposits to the Renewal and Replacement Fund are required each month in an amount equal to one-twelfth(IA2)of five per centum (5%)of the gross revenues of the system for the previous fiscal year; provided, however,that so long as there shall be on deposit in the renewal and replacement fund a balance of at least five per centum (5%) of the value of the fixed assets of the system,no additional deposits shall be required; (e) Deposits will next be made into the rate stabilization fund for the amount budgeted for Mthe then current period;and (f) Thereafter for any lawful purposes. `an Annual requirements to amortize the Utility System Refunding Revenue Note outstanding as of September 30,2022,are as follows: Year Ending Business-Type Activities September 30, Principal Interest 2023 $ 959,000 $ 104,455 2024 981,000 82,145 2025 1,004,000 59,317 2026 1,027,000 35,961 2027 1,050,000 12,075 $ 5,021,000 $ 293,953 In 2010,the City issued Guaranteed Entitlement Revenue Note,Series 2010: Original amount issued $750,000 Issue date November 23,2010 Final maturity October 1,2030 Interest due April 1 and October 1 Interest rate Fixed—2.77% The note is pledged by State Revenue Sharing monies received by the City and the proceeds were used to construct Fire Station Number 55. Debt service requirements for this revenue note using interest rate of t"+ 2.77%at September 30,2022,are as follows: 55 CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (9) Long-term Debt: (Continued) Year Ending Governmental Activities September 30, Principal Interest 2023 $ 40,000 $ 10,666 2024 40,000 9,583 2025 45,000 8,381 2026 45,000 7,134 2027 45,000 5,888 2028-2031 190,000 10,821 $ 405,000 $ 52,473 In March 2006, the City signed a limited general obligation note payable for $500,000 to fund the construction of a new animal shelter.The note is secured by a limited pledge of ad valorem taxes. While the note is outstanding, the City will levy ad valorem taxes, not to exceed .06 mills to pay principal and interest on the note.The note matures in July 2026 and has an interest rate of 3.85%.Annual debt service requirements are as follows: FOR Year Ending Governmental Activities September 30, Principal Interest 2023 $ 30,000 $ 5,191 om 2024 35,000 4,037 2025 35,000 2,692 2026 35,000 1,346 MR $ 135,000 $ 13,266 November 2012, the City executed an agreement with the Florida Department of Environmental Protection to borrow up to$6,438,083 at an interest rate of 1.72-1.84%through the State Revolving Fund loan program, for the purpose of wastewater treatment replacement and renewal. Capitalized interest added to the loan was$89,773. Repayment commenced on December 15, 2014,and is due semiannually thereafter on June 15 and December 15, each year until all amounts due under the agreement have been fully paid in June 2034.Current debt service requirements are as follows: Year Ending Business-Type Activities September 30, Principal Interest 2023 $ 310,007 $ 73,962 2024 315,704 68,265 2025 321,506 62,463 2026 327,415 56,555 2027 333,432 50,538 2028-2032 1,761,356 158,490 2033-2034 750,693 17,245 $4,120,113 $ 487,518 r� 56 R" MR CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS M14 SEPTEMBER 30,2022 (9) Long-term Debt: (Continued) oM In March 2014, the City executed an agreement with a financial institution to borrow $1,300,000 at an interest rate of 2.41%, for the purpose of capital improvements. Interest-only payments are due on September 1, while interest and principal payments are due on March 1 with a maturity date of March FM 2024. Debt service requirements are as follows: Year Ending Business-Type Activities Governmental Activities FE19 September 30, Principal Interest Principal Interest 2023 $ 82,973 $ 3,042 $ 58,027 $ 2,127 2024 84,738 1,022 59,262 715 mm� Total $ 167,711 $ 4,064 $ 117,289 $ 2,842 The City has financed purchase agreements for financing the acquisition of rescue vehicles and other vehicles from BB&T and Truist Bank in 2019 and 2020, respectively. These agreements qualify as `„ financed purchase agreements for accounting purposes and,therefore, were recorded at the present value of their future minimum lease payments as of the inception date. ,.., The assets acquired through the financed purchase agreements are as follows: BB&T Truist Bank Governmental Business-type Activities Activities Machinery and equipment $ 594,457 $ 891,766 „a Less: Accumulated depreciation (122,668) (148,628) Total $ 471,789 $ 743,138 The future minimum obligations and the net present value of these payments as of September 30, 2022 were as follows: BB&T Truist Bank Year Ending Governmental Business-type September 30, Activities Activities 2023 $ 84,726 $ 157,854 2024 83,928 157,208 2025 62,105 157,526 2026 62,758 157,790 2027 62,361 - 2028-2029 124,434 - "�' Total minimum payments 480,312 630,378 Amounts representing interest (41,312) (27,378) Present value of minimum payments $ 439,000 $ 603,000 req r+�n 57 OM CITY OF EDGEWATER, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 OEM (9) Long-term Debt: (Continued) ow Changes in Long-Term Liabilities Long-term liability activity for the year ended September 30,2022 was as follows: FM Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: FM Notes payable: General Obligation Note,2017 $ 2,833,000 $ - $ (152,000) $ 2,681,000 $ 156,000 Capital Improvement Revenue Note,2017 1,539,000 - (123,000) 1,416,000 127,000 Guaranteed Entitlement Note, Series 2010 445,000 - (40,000) 405,000 40,000 General Obligation Note,2007 165,000 - (30,000) 135,000 30,000 Capital Improvement Note 2014 174,081 - (56,792) 117,289 58,027 AEBI 25,066 - (25,066) - - American Vehicle 90,181 - (90,181) - - BB&T Vehicle 511,000 - (72,000) 439,000 74,000 Leases: pa' Dex Copiers - 77,986 (19,652) 58,334 20,113 Compensated absences 1,395,166 932,008 (894,151) 1,433,023 894,151 Total governmental activities long-term liabilities $ 7,177,494 $ I,009,994 $$ (1502=842) $ 6,684,646 $ 1,399,291 "" Business-type activities: Notes payable: g, State Revolving loan,2013 $ 4,424,526 $ - $ (304,413) $ 4,120,113 $ 310,007 State Revolving loan,2017 287,403 - (16,582) 270,821 16,687 State Revolving loan,2018 3,692,020 - (183,345) 3,508,675 184,520 Capital Improvement Note 2014 248,920 - (81,209) 167,711 82,973 ,w, Refunding Revenue Note 2016 5,959,000 - (938,000) 5,021,000 959,000 American Capital 12,953 - (12,953) - - Truist Refuse Trucks 747,000 - (144,000) 603,000 147,000 Leases: Fm Dex Copiers - 32,476 (8,184) 24,292 8,376 Compensated absences 604,850 347,184 (437,688) 514,346 437,688 Total business-type activities long 229,958 $ 2,146,251 �, term debt $ 15,976,672 $ 379,660 $ (2,126,374) $ 14, Internal service funds predominately serve the governmental funds.Accordingly,$86,290 of compensated absences are included in the above governmental activities amounts. Also, for governmental activities, FM compensated absences, net pension liabilities, and OPEB liabilities are generally liquidated by the General Fund. ama an 58 FW a" pin CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS RM SEPTEMBER 30,2022 (10) Other Commitments: ffliq The City has entered into several agreements that are outstanding at September 30,2022,which will result in future financial obligation as follows: Commitments Amount General Fund $ 2,472,514 Fire Impact Fee Fund 50,000 CRA Fund 84,000 Capital Projects Fund 4,231,434 for$ Water and Sewer Utility Fund 16,267,252 Stormwater Utility Fund 5,170,558 Solid Waste Fund 4,805,089 Information Technology Fund 1,227,860 Fleet Fund 74,048 Total $ 34,382,755 (11) Other Matters: rs► (a) Risk Management: The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the City carries commercial insurance. '!+ During 2022, there were no significant reductions in insurance coverage from the previous year or any settlements in excess of insurance coverage in the current year or the prior three years. (b) Other Postemployment Benefits(OPEB): Plan Description—Effective October 1, 2017, the City implemented GASB Statement No. 75, Accounting and Reporting for Post-Employment Benefits Other Than Pensions, for certain post- employment healthcare benefits provided by the City. The City elected to implement the requirements of this statement prospectively. No assets are held in trust for payment of the OPEB liability as the City had no OPEB liability other than as arising from the implicit rate subsidy, as discussed in the following paragraph. Retirees and their dependents are permitted to remain covered under the City's respective health care plans as long as they pay a full premium applicable to the coverage elected. This conforms to the minimum required of Florida governmental employers per Chapter 112.08, Florida Statutes.The Other Post-Employment Benefit Plan does not issue a stand-alone report. Benefits Provided—The Other Post Employment Benefit Plan is a single-employer benefit plan administered by the City. Retirees are charged whatever the insurance company charges for the type of coverage elected, however, the premiums charged by the insurance company are based on a blending of the experience among younger active employees and older retired employees.The older retirees actually have a higher cost which means the City is actually subsidizing the cost of the retiree coverage because it pays all or a significant portion of the premium on behalf of the active employee.This is referred to as the"implicit rate subsidy." My 59 PQ CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (11) Other Matters:(Continued) Plan Membership—At September 30, 2021, the date of the latest actuarial valuation, plan participation consisted of the following: Active Participants 189 Retirees,Beneficiaries,and Disabled Members I2 Covered Spouses 2 203 Total OPEB LiabilityThe City's total OPEB liability of $8,855,053 was measured as of September 30, 202I,and was determined by an actuarial valuation as of September 30,2022. P+ Actuarial Assumptions and Other Inputs—The total OPEB liability in the September 30, 2021 actuarial valuation, updated to September 30, 2022, was determined using the following actuarial ,., assumptions and other inputs,applied to all periods in the measurement,unless otherwise specified: Inflation 2.500/0 Salary increases Varies By Service Discount rate 2.43% Initial Trend Rate 7.50% Ultimate Trend Rate 4.00% Years to Ultimate 53 Given the City's decision not to fund the program, all future benefit payments were discounted using a high-quality municipal bond rate of 2.43%.The high-quality municipal bond rate was based on the S&P Municipal Bond 20 Year High Grade Rate Index as published by S&P Dow Jones Indices as of the measurement date.The S&P Municipal 20 Year High Grade Rate Index consists of bonds in the S&P Municipal Bond Index with a maturity of 20 years.Eligible bonds must be rated at least AA by Standard and Poor's Ratings Services, Aa2 by Moody's or AA by Fitch. If there are multiple ratings,the lowest rating is used. All mortality rates were based on the Pub-2010 mortality tables. All mortality rates are based on those outlined in Miiliman's July 1, 2021 Florida Retirement System (FRS) valuation report with certain demographic adjustments. All tables include fully generational adjustments for mortality �. improvements using gender-specific improvement scale MP-2018. Changes of Assumptions reflect a change in the discount rate from 2.14% for the reporting period ended September 30,2021,to 2.43%for the reporting period ended September 30,2022. FM 60 rM fm CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (11) Other Matters: (Continued) Changes in the OPEB liability for the fiscal year ended September 30,2022,were as follows: Total OPER Liability Balance at September 30,2021 $ 8,660,680 Changes for a year: �+ Service cost 283,368 Interest I89,238 Difference between expected and actual experience 2,522,578 MR Changes of assumptions (2,597,431) Benefit payments—implicit rate subsidy (203,380) Net changes 194,373 Balance at September 30,2022 $ 8,855,053 Sensitivity of the total OPEB liability to changes in the discount rate: The following presents the total OPEB liability of the City calculated using the discount rate of 2.43%, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1%lower(1.43%)or 1%higher(3.43%)than the current rate: n.► 1% Current 1% Decrease Discount Rate Increase Im Total OPEB Liability $ 11,125,447 $ 8,855,053 $ 7,204,174 Sensitivity of the total OPEB liability to changes in the healthcare cost trend rate: `� The following presents the total OPEB liability of the City as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower (3.00%- 6.50%)or I%higher(5.00%-8.50%)than the current healthcare cost trend rates(4.00%-7.500/0): 1% Current 1% Decrease Trend Rates Increase Total OPEB Liability $ 7,202,060 $ 8,855,053 $ 11,071,898 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30,2022;the City recognized OPEB expense of$732,198. rim i•o 61 CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (11) Other Matters: (Continued) At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred ,4 Outflows of Inflows of Resources Resources Differences Between Expected and Actual Experience $ 3,126,377 $ - Changes ofAssumptions 1,709,910 2,471,177 Employer Contributions Subsequent to the Measurement Date 195,088 - Total $ 5,031,375 $ 2,471,177 �. Amounts reported as deferred outflows of resources (except for contributions made subsequent to the measurement date, which will be recognized in the succeeding fiscal year)and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending September 30, Amount 2023 $ 253,820 2024 329,631 2025 390,938 2026 390,938 2027 390,938 Thereafter 608,845 (c) Employee Defined Benefit Retirement Pension Plans: Plan Description and Administration The City maintains three separate single-employer, defined benefit pension plans for full-time general employees, police officers and firefighters,which are administered by and maintained as the respective Pension Trust Funds and included as part of the City's reporting entity. The General Employees Retirement Trust Fund was established by Chapter 13 of the City's Code of Ordinances. The Police Officers' Retirement Trust Fund was established pursuant with Chapter 185, Florida Statutes. The Firefighters' Pension Fund was established pursuant with Chapter 175, Florida Statutes. The applicable Ordinances or Statutes grant the authority to establish and amend the benefit terms to the Boards of Trustees. Separate boards of trustees independently govern each system. The General Employees' Pension Fund is Board of Trustees is comprised of two legal residents of the City, who are appointed by the City Council;two members of the Plan employed by the City and elected by the plan members; one p^ member as a union representative, as appointed by the union. Both the Police Officers' Retirement Trust Fund and the Firefighters' Pension Fund are comprised of two Council appointees; two members of the department elected by the membership; one member elected by the other four members and appointed by the Council. The funding methods and determination of benefits payable are provided in the various acts of the Florida Legislature, the respective board of trustees and the City Council. 62 n• M MR CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (11) Other Matters: (Continued) fop Benefits Provided Each system provides retirement, disability and death benefits. All employees vest for full benefits after five years of service. Retirement benefits for general employees are based on the three consecutive years which give the highest average out of the last ten years. General employees will receive a benefit amount equal to 2% of that average multiplied by years of accrued service. n., Retirement benefits for police officers are based on the three years which give the highest average out of the last five years. Police officers will receive a benefit amount equal to 2% of that average multiplied by years of accrued service up to October 1, 1987, and 3%of that average multiplied by years of accrued service after October 1, 1987. Retirement benefits for firefighters are based on the five years,which give the highest average out of the last ten years. Firefighters will receive a benefit amount equal to 3% of that average multiplied by years of accrued service. All employees with 5 years of accrued service are eligible to retire at age 55. General employees may retire at any age after 25 years of service. Police officers and Firefighters may retire at any age after 20 years of service. All employees are eligible for non-service disability benefits after 5 years of service and for service-related disability benefits upon hire. Disability retirement benefits are determined in the same manner as retirement benefits but are payable immediately without an actuarial reduction. Death benefits for vested general employees prior to retirement and with a 50% qualified joint survivor annuity will be paid monthly. Death benefits are paid for vested police officers, prior to retirement and with a 100% qualified joint survivor annuity. Death benefits for firefighters are paid "' for 10 years. All nonvested employees do not receive a death benefit and the Plan refunds accumulated contributions without interest. An employee that leaves the City prior to reaching 5 years of service may withdraw his or her contributions without interest. After 5 years, the employee rAn may elect to receive the accrued benefit payable at retirement age.There are no annual cost of living adjustments. Employees Covered by Benefit Terms As of the latest actuarial valuation report, the following employees were covered by the benefit terms: ria General Police Fire Grou2 Employees Officers Fighters' Inactive plan members and beneficiaries currently 101 34 14 receiving benefits Inactive plan members entitled to but not receiving 15 13 2 benefits Active plan members 1 31 29 Total 117 78 45 The General Employees' Pension Fund was amended in October 1996,which closed off the plan to any new employees hired by the City after October 1, 1996. Employees hired after October 1, 1996, however, are eligible for the City's 401(a) Defined Contribution Plan. Employees hired prior to October 1, 1996,and not vested in the General Employees' Pension Fund as of September 30, 1997, may elect to participate in the 401(a)Defined Contribution Plan. Py 63 Oak CITY OF EDGEWATER, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 om (1 l) Other Matters: (Continued) With the October 1,2013,valuation, the General Employees Board of Trustees adopted changes to years of service,and the benefit limitation.Starting for the year ending September 30,2014,funding requirements are now based on a dollar funding methodology as compared to the percentage of payroll methodology. "um Contributions PM Legislature grants the authority to establish and amend the contribution requirements of the City and active employees to the respective Boards of Trustees. The Boards establish rates based on an actuarially determined rate recommended by an independent actuary. The actuarially determined no rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.The City is required to contribute the difference between the actuarially determined rate and the contribution rate of the employees. For the year ended September 30, 2022, the average active employee contribution was °w $2,756 for general employees and 6% of annual pay for both police officers and firefighters. The general employee pension fund requires a contribution from City based on a dollar funding methodology. For the year ended September 30,2022, the total required contribution from the City MIR was $755,895 for the general employees' pension fund. The City's average contribution rate was 58.6% and 24.1% of annual payroll for the police officers and firefighters pension funds, respectively. om Investment Policy The pension plan's policy in regard to the allocation of invested assets is established and may be .a amended by the Board of Trustees by a majority vote of its members. It is the policy of the respective Board of Trustees to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes.The pension plan's PM investment policy discourages the use of cash equivalents,except the liquidity purposes,and aims to refrain from dramatically shifting asset class allocations over short time spans. The following was the Board's adopted asset allocation policy as of September 30,2022: General Employees Police Officers Firefighters' Asset Class Target Allocation Target Allocation Target Allocation Domestic equity 40% 45% 50% International equity 10% 15% 15% Bonds/domestic fixed 40% 25% 35% income Global fixed income - 5% - Real estate 10% 10% - Total 100% 100% I00% �• Concentrations The pians did not hold investments in any one organization that represent 5%or more of the Pension Plan's fiduciary net position. 64 CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (11) Other Matters: (Continued) Reserves As of September 30, 2022, there are no amounts legally required to be reserved for the general, police and firefighter pension funds,respectively. Financial Statements The financial statements of the Employee Retirement plans are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The government's contributions are recognized when due and a formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. All plan investments are reported at fair value. These plans do not issue stand-alone financial reports. Individual Fiduciary Fund Statements Individual statements of net position for the three plans included in the City of Edgewater fiduciary funds are as follows: Combining Statement of Fiduciary Net Position Pension Trust Funds September 30,2022 General Employees Police Officers Firefighters ASSETS Accrued income $ 42,609 $ 30,583 $ 29,638 Accounts receivable 3,872 - - Money market funds 462,008 557,642 784,073 Bonds US Treasury notes 813,020 746,584 - GNMA 1,184,397 767,287 98,006 Municipal bonds 30,415 21,725 74,970 Corporate bonds 1,977,516 1,397,011 3,860,788 Mutual fund—fixed income 1,935,921 - - Mutual fund-equities 3,227,486 7,460,413 12,286,055 �+ Commingled real estate fund 1,573,233 1,511,314 - Total assets 11,250,477 12,492,559 17,133,530 LIABILITIES Accounts payable - - - Unearned contributions - - - NET POSITION FW Restricted for pensions $ 11,250,477 $ 12,492,559 $ 17,133,530 wa pin 65 CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (11) Other Matters: (Continued) Combining Statement of Changes in Fiduciary Net Position Pension Trust Funds For the fiscal year ended September 30,2022 General Police Employees Officers Firefighters ADDITIONS Contributions: Employer $ 755,895 $ 1,016,434 $ 373,350 Employee 2,759 114,851 136,072 State of Florida - 195,502 201,301 Total contributions 758,654 1,326,787 710,723 Investment earnings(loss): Interest and dividends 1,266,121 474,351 272,031 Net increase(decrease)in fair value of investments (3,560,689) (2,706,613) (3,279,920) ,. Other income - - Total investment earnings(loss) (2,294,568) (2,232,262) (3,007,889) Less:investment expense (52,536) (55,074) (117,585) FM Net investment earnings(loss) (2,347,104) (2,287,336) (3,125,474) Total additions (1,588,450) (960,549) (2,414,751) DEDUCTIONS ow Pension benefits $ 1,512,145 $ 1,042,545 $ 1,065,030 Administrative expenses 39,954 51,763 53,515 Total deductions 1,552,099 1,094,308 1,118,545 ,n, Change in net position (3,140,549) (2,054,857) (3,533,296) Net position,beginning of year 14,391,026 14,547,416 20,666,826 Net position,end of year $ 11,250,477 $ 12,492,559 $ 17,133,530 Net Pension Liability Actuarial Assumptions: The total pension liability was determined with a measurement date of September 30, 2021 and an actuarial valuation as of October 1, 2020 updated to September 30, 2022, using the following actuarial assumptions to all measurement periods. General Employees Police Officers Firefighters ®, Inflation 2.50% 2.50% 2.50% Salary increases 4.00% Service based Service based Investment rate of return/discount rate 6.25% 7.40% 7.00% 66 �. full MM CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS rAn SEPTEMBER 30,2022 (11) Other Matters: (Continued) MM Mortality rates: Police Officers& General Employees Firefighters Mq Mortaility Rate Healthy Active Lives: Female:PubG.H-2010(Above Female:PubS.H-2010(Below Median)for Employees Median)for Employees,set forward one year. Male:PubG.H-2010(Below Male:PubS.H-2010(Below pq Median)for Employees,set Median)for Employees,set back one year. forward one year. Mortality Rate Healthy Retiree Lives: Female:PubG.H-2010 for Female:PubS.H-2010 for (Art Healthy Retirees Healthy Retirees,set forward one year. Male:PubG.H-2010(Below Male.PubS.H-2010(Below Median)for Healthy Median)for Healthy fowl Retirees,set back one year. Retirees,set forward one year. Mortality Rate Beneficiary Lives: Female:PubG.H-2010(Below Female:PubG.H-2010(Below ,=q Median)for Healthy Median)for Healthy Retirees. Retirees. Male:PubG.H-2010 for Male:PubG.H-2010(Below Healthy Retirees,set back Median)for Healthy rmn one year. Retirees,set back one year. Mortality Rate Disabled Lives: PubG.H-2010 for Disabled 80%PubG.H-2010 for Retirees,set forward three Disabled Retirees 120% r-M years. PubS.H-2010 for Disabled Retirees. Mortality rates for General Employees are projected generationally with mortality Improvements r,.i Scale MP-2018. The above described mortality assumption rates were mandated by Chapter 2015- 157, Laws of Florida. The above rates are those outlined in Milliman's July 1, 2020 FRS valuation report for non-special risk employees, with appropriate adjustments made based on plan demographics. The actuarial assumptions are based upon the most recent actuarial experience study `"n dated June 13, 2013. Mortality rates for the Police Officers are projected generationally with mortality Improvements Mq Scale MP-2018. The above described mortality assumption rates were mandated by Chapter 2015- 157, Laws of Florida. The above rates are those outlined in Milliman's July I, 2020 FRS valuation report for non-special risk employees, with appropriate adjustments made based on plan r,,,n demographics. The actuarial assumptions are based upon the most recent actuarial experience study dated September 17,2020. Mortality rates for the Firefighters are projected generationally with mortality Improvements Scale MM MP-2018. The above described mortality assumption rates were mandated by Chapter 2015-157, Laws of Florida.The above rates are those outlined in Milliman's July 1,2020 FRS valuation report for non-special risk employees, with appropriate adjustments made based on plan demographics. Mn The actuarial assumptions are based upon the most recent actuarial experience study dated December 6,2019. ran A.q 67 CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 {11) Other Matters: (Continued) The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return(expected retums, net of pension plan investment costs and inflation) are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major class as of September 30,2022,are summarized in the following table: Long Term Expected Real Rate of Return General Police Asset Class Employees Officers Firefighters Domestic equity 8.30% 7.50% 7.50% International equity 4.10% 8.50% 8.50% Bonds/domestic fixed income 3.10% 2.50% 2.50% Global fixed income - 3.50% - Real estate 5.50% 4.50% - Discount rate: The discount rate used to measure the total pension liability for the General Pension Plan was 6.25%, 7.40% for Police, and 7.00% Fire Pension Plans. The projection of cash flows used to determine the discount rate assumed the plan member contributions will be made at the current contribution rate and that City contributions will be made as rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future ,M benefit payments of current active and inactive employees.Therefore,the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The components of the net pension liability of the pension plans at September 30, 2022, were as follows: am General Police Employees Officers Firefighters Total pension liability $ 19,287,655 $ 16,378,372 $ 17,292,977 Plan fiduciary net position (14,383,928) X4,477,202) (20,624,262) Net pension liability(asset) $ 4,903,727 $ 1,901,170 $ (3,331,285) Plan fiduciary net position as percentage 74.58% 88.39% 119.26% of total pension liability am 68 tow FENt CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 (l I) Other Matters: (Continued) Changes in the Net Pension Liability General Employee's Retirement Trust Fund Total Pension Plan Net Pension Liability Fiduciary Net Liability (a) Position(b) (a—b) Beginning Balance $ 18,663,267 $ 12,949,298 $ 5,713,969 Changes for year: Pon Service cost 18,922 - 18,922 Interest 1,210,245 - 1,210,245 Differences between expected and actual experience 57,121 - 57,121 Changes of assumptions 843,369 - 843,369 Contributions—employer - 793,823 (793,823) Contributions—employee - 2,564 (2,564) Net investment income - 2,189,050 (2,189,050) Benefit payments,including refunds (1,505,269) (1,505,269) - Administrative expenses - (45,538) 45,538 Net changes 624,388 1,434,630 (810,242) Ending Balance $ 19,287,655 $ 14,383,928 $ 4,903,727 +Rn Police Officer's Retirement Trust Fund Total Pension Plan Fiduciary Net Pension Liability Net Position Liability �+ (a) (b) (a--b) Beginning Balance $ 15,512,256 $ 12,058,659 $ 3,453,597 Changes for year: Service cost 354,462 - 354,462 Interest 1,133,974 - 1,133,974 Share plan allocation 180,475 - 180,475 Differences between expected and actual experience 221,220 - 221,220 Contributions—employer - 999,201 (999,201) Contributions—State - 180,475 (180,475) Contributions—employee - 108,217 (108,217) Contributions—buy back 61,476 61,476 Net investment income - 2,218,422 (2,218,422) "R Benefit payments,including refunds (1,085,491) (1,085,491) - Administrative expenses - (63,757) 63,757 Net changes 866,116 2,418,543 (1,552,427) Ending Balance $ 16,378,372 $ 14,477,202 $ 1,901,170 r� 69 am on CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 OM (11) Other Matters: (Continued) am Firefighter's Retirement Trust Fund Net Pension Total Pension Pian Fiduciary Liability om Liability Net Position (Asset) (a) (b) (a—b) FM Beginning Balance $ I5,696,313 $ 17,668,275 $ (1,971,962) Changes for year: Service cost 388,119 - 388,119 Interest 1,135,760 - 1,135,760 "" Share plan allocation 130,864 - 130,864 Differences between expected and actual experience 288,633 - 288,633 p, Changes of assumptions 442,448 - 442,448 Contributions—employer - 353,847 (353,847) Contributions—State - 186,156 (186,156) FM Contributions—employee - 104,018 (104,018) Contributions—buy back 48,403 48,403 Net investment income - 3,158,726 (3,158,726) Benefit payments,including refunds (837,563) (837,563) - "M Administrative expenses - (57,600} 57,600 Net changes 1,596,664 2,955,987 (1,359,323) Ending Balance $ 17,292,977 $ 20,624,262 $ (3,331,285) FM om Im 70 A+ Mn CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS „q SEPTEMBER 30,2022 (11) Other Matters: (Continued) MM Sensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability of the City calculated using the discount rate of rim 6.25% for the General Employee's Pension, 7.40% for Police, and 7.00% for Firefighters. The information presented below is what the City's net pension liability would be if it were calculated using a discount rate that is I%lower or 1%higher than the current rate: 1% Current Decrease Discount Rate 1%Increase City's Net Pension Liability(Asset) 5.25% 6.25% 7.25% General Employees Retirement Trust Fund $ 6,824,801 $ 4,903,727 $ 3,274,752 1% Current Decrease Discount Rate 1%Increase City's Net Pension Liability(Asset) 6.40% 7.40% 8.40% Police Officers Retirement Trust Fund $ 3,688,448 $ 1,901,170 $ 417,984 1% Current r� Decrease Discount Rate 1%Increase City's Net Pension Liability(Asset) 6.00% 7.00% 8.00% Firefighters Retirement Trust Fund $ (1,341,034) $ (3,331,285) $ (4,975,076) For the year ended September 30, 2022, the annual-money weighted rate of return on each pension plan investments,net of pension plan investment expense was as follows: PER General Police Employees Officers Firefighters Retirement Retirement Retirement paq Trust Fund Trust Fund Trust Fund Annual money-weighted rate of return 17.37% 18.32% 17.98% The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30,2022,the City recognized pension expense of$937,598,$580,256 and $(276,972) in the General Employees, Police Officers, and Firefighters pension plans, respectively,for a total aggregate pension expense of$1,240,882 for all three plans. 71 OEM RM CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 p„ (11) Other Matters: (Continued) At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: General Employees' Police Officers' Firefighters' Retirement Retirement Retirement Trust Fund Trust Fund Trust Fund Deferred Deferred Outflows Deferred Deferred Deferred Outflows Deferred of Inflows of Outflows of Inflows of of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and actual experience $ - $ - $ 256,103 $ - $ 375,814 $ 146,562 Changes of assumptions - - - 75,945 690,705 111,232 Net difference between projected and actual investment earnings - 1,311,001 - 1,196,431 - 2,023,708 Contributions made subsequent +� to measurement date 755,895 - 1,211,936 - 574,651 - $ 755,895 $1,311,001 $1,468,039 $1,272,376 $1,641,170 $2,281,502 Amounts reported as deferred outflows of resources (except for contributions made subsequent to the measurement date, which will be recognized in the succeeding fiscal year) and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended General Police September 30: Employees Officers Firefighters 2023 $ (335,319) $ (223,796) $ (397,664) 2024 (338,248) (233,508) (269,985) 2025 (369,347) (295,234) (437,511) 2026 (268,087) (263,735) (231,670) p 2027 - - 121,847 (d) Employee Defined Contribution Retirement Pension Plans: General Employees—The City adopted a defined contribution plan effective October 1, 1996.The plan is a money purchase plan administered for the City by the 1CMA. Eligible employees are employees hired effective October 1, 1996, or thereafter that would otherwise qualify for the General Employees' Pension Plan. Employees hired prior to October 1, 1996, and not vested in the General Employees' Pension Plan may also elect, instead,to participate in the defined contribution plan. Employee participation is immediate upon hiring and are 100% vested after five years of employment. Employees direct the investment of funds contributed to the plan on their behalf. Employer contributions made during the year amounted to $779,571. The City Council has the authority to amend the Plan's provisions including amending contribution requirements. PM 72 am Mh 014 CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS ren SEPTEMBER 30,2022 (11) Other Matters: (Continued) Mn (e) Deferred Compensation Plans—The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457; i.e., International City/County Management Association (ICMA). The plan is available to all City employees and permit `'" employees to defer a portion of their salary until future years. Participation in the plan is optional. Deferred compensation withdrawals are not available to employees until termination, retirement, death,or an unforeseeable emergency. In accordance with current professional pronouncements, the City has not included such funds in its financial statements. (f) Tax Abatement—The City entered into an agreement with a local organization to abate certain ad valorem taxes in exchange for economic incentives. Article VII, Section 3 of the Florida Constitution and Section 16.1995, Florida Statutes, and the electorate of the City, have granted City Council the authority to grant property tax exemptions for new business and expansions of existing businesses. The City Council approved Ordinance 2017-0-22, granting the organization an ad valorem tax exemption for a term of ten years expiring in 2026. There was $31,250 in taxes abated during the year ended September 30,2022,as scheduled. (g) Contingencies—The City has been involved in miscellaneous collections, lot cleaning, stormwater,and other liens. In addition,the City has numerous pending/threatened claims against it. In the opinion of City management, the loss, if any, resulting from these actions will not have a material adverse effect on the financial condition of the City. Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts,if any,to be immaterial. (h) Subsequent Events—At the end of September 2022, the city was affected by Hurricane Ian, and again in November 2022, by Hurricane Nicole. These hurricanes were primarily wind and flooding events,causing damage to many of the city facilities along with debris, power outages,and flooding damages. Debris removal and cleanup costs, facility damage, and emergency protective measures incurred due to these hurricanes are estimated at$3 million. Expected reimbursements of over 95%are expected from FEMA,and state, and insurance proceeds. 73 PM aer CITY OF EDGEWATER,FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 „# (12) Recently Issued Pronouncements: pop The Governmental Accounting Standards Board ("GASB") has issued several pronouncements that have effective dates that may impact future financial statements. Listed below are pronouncements with required implementation dates effective for subsequent fiscal years that have not yet been implemented. oft Management has not currently determined what, if any,impact implementation of the following will have on the City's financial statements: (a) GASB issued Statement No. 87, Leases, in June 2017. GASB 87 increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model �.. for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The City implemented this Statement and its various provisions during the year ended September 30,2022 with an effective date of October 1,2021. FM (b) GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements, in May 2020. provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This ow Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset---an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87,Leases,as amended.The provisions in GASB 96 are effective for periods beginning after June 15,2022. (c) GASB issued Statement No. 101, Compensated Absences, in June 2022. GASB Statement No. 101 amends various provisions regarding the calculation methodology and required disclosures related to the liability for compensated absences. The provisions for GASB 101 are effective for fm fiscal years beginning after December 15,2023. 74 FM I City Of EDGEWATERFl This page intentionally left blank fm FM CITY OF EDGEWATER,FLORIDA OR Required Supplementary Information(unaudited) Gseneml Employees'Retirement Trust Schedules of Changes in the City's Net Pension Liability and Related Ratios am Reporting Period Ending 9/30/2022 9/30/2021 9/30/2020 9/30/2019 Measurement Date 9/30/2021 9/30/2020 9/30/2019 9/30/2018 Total pension liability Service cost $ 18,922 $ 18,087 $ 17,847 $ 29,715 Interest 1,210,245 1,241,131 1,255,470 1,254,084 Differences between expected and actual experience Differences between Expected and Actual Experience 57.121 16,468 39,215 248,369 Changes of assumptions 843,369 (221,363) Contributions—buy back - - - - Benefit payments,including refunds of employee contributions (1,505,269) (1,520,177) (1,530,253) (1,469,263) Net change to total pension liability 624,388 (465,854) (217,721) 62,905 ¢'" Total pension liability,beginning 18,663,267 19,129,121 19,346,842 19,283,937 Total pension liability,ending(a) $ 19,287,655 $ 118,663,267 $ 19,129,121 $ 19,346,842 Plan fiduciary net position Contributions—employer $ 793,823 $ 799,291 $ 782,806 $ 744,629 Contributions—employee 2,564 2,465 2,615 4,662 Contributions—buy back - - -Net investment income 2,189,050 1,317,329 663,572 803,070 Benefit payments,including refunds of employee contributions (1,505,269) (1,520,177) (1,530,253) (1,469,263) Administrative expense (45,537) 4( 8.073) (54,055) (47,203) �a Net change in plan fiduciary net position 1.434,631 550,835 (135,315) 35,895 Plan fiduciary net position,beginning 12,949,297 I2,398,462 12,533,777 12,497,882 Plan fiduciary net position,ending(b) S 14,383,928 $ 12,949,297 S 12,398,462 S 12,533,777 FIP Net pension liability(asset)—ending(a)-(b) $ 4,903,727 S 5,713,970 S 6,730,659 $ 6,813,065 Plan fiduciary net position as a percentage of the total pension liability 74.58% 69.38% 64.81% 64.78% w Covered payroll $ 102,558 S 98,612 S 104,603 S 193,713 Net pension liability as a percentage of payroll 4781.42% 5794.40% 6434.48% 3517.09% ¢+ Annual Money-Weighted Rate of Return 17.37% 10.95% 5.47% 6.63% Note-Additional years'information will be displayed as it becomes available to present 10 years. 76 fn mm fmq 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 9/3012017 9/30/2016 9/30/2015 9/30/2014 9/30/2013 rwf $ 53,793 S 34,222 $ 60,573 S 91,269 S 84,901 1,254,173 1,250,244 1,238,859 1,241,107 1,237,145 176,321 (50,657) 259,399 - - rum - 1,777,486 - - - 299,746 - - - (1,453,783) (1,386,624) (1,374,722) (1,288,586) (1,262,597) MR 30,504 1,924,417 184,109 43,790 59,449 14,253,433 17,329,016 17,144,907 17,101,117 17,041,668 $ 19,283,937 S 19,253,433 S 17,329,016 S 17,144,907 $ 17,101,117 mq S 667,440 $ 661,699 $ 713,396 $ 772,605 S 475,794 6,091 5,851 8,535 13,178 15,348 - 299,746 - - - F" 1,055,669 950,355 (67,754) 1,059,400 1,563,721 (1,453,783) (1,386,624) (1,374,722) (1,288,586) (1,262,597) (44,217) (40,442) (48,589) (42,302) (76,889) 231,200 490,585 (769.134) 514,295 715,377 12,266,682 11,776,097 12,545,231 12,030,936 11,315559 S 12,497,882 $ 12,266,682 S 11,776.097 S 12,545,231 S 12,030,936 $ 6,786,055 S 6,986,751 $ 5,552,919 S 4,599,676 S 5,070,181 Pon 64.81% 63.71% 67.96% 73.17% 70.35% S 236,414 $ 349,034 S 341,408 S 567,030 S 613,927 raq 2870.41% 2001.74% 1626,48% 811.19% 825.86% 8.92% 8.40% -0.56% 8.94% 13.50% r� Pon rAm 77 as R CITY OF EDGEWATER,FLORIDA R Required Supplementary Information(unaudited) Police Officers'Pension Trust Schedules of Changes in the City's Net Pension Liability and Related Ratios R Reporting Period Ending 9/30/2022 9/30/2021 9/30/2020 9/30/2019 Measurement Date 9/30/2021 9/30/2020 9/30/2019 9/30/2018 Total pension liability Service cost $ 354,462 $ 254,215 $ 256,785 $ 264,098 Interest 1,133,974 1,105,408 1,066,672 989,631 R Change in Funding Standard Account - - - - Share Plan Allocation 180,475 177,890 177,174 163,282 Differences between expected and actual experience Differences between Expected and Actual Experience 221,220 233,955 48,813 565,564 Changes of assumptions - (227,835) - - Contributions-buy back 61,476 - - - R contributions (1,085,491) (1,031,883) (1,028,888) (867,226) Net change in total pension liability 866,116 511,750 520,556 1,115,349 Total pension liability,beginning 15,512,256 15,000,506 14,479,950 13,364,601 Total pension liability,ending(a) $ 16,378,372 S 15,512,256 S 15,000,506 $ 14,479,950 R Plan fiduciary net position Contributions-employer $ 999,201 $ 891,041 $ 781,147 $ 777,360 R Contributions-state 180,475 177,890 177,174 163,282 Contributions-employee 108,217 98,822 90,656 86,174 Contributions-buy back 61,476 - - - R Net investment income 2,218,422 1,242,126 463,243 736,836 Benefit payments,including refunds of employee contributions (1,085,491) (1,031,883) (1,028,888) (867,226) Administrative expense (63,757) (52,255) (63,994) (50,879) Net change in plan fiduciary net position 2,418,543 1,325,741 419,338 845,547 Plan fiduciary net position,beginning 12,058,659 10,732,918 10,313,580 9,468,033 "M Plan fiduciary net position,ending(b) $ 14,477,202 S 12,058,659 $ 10,732,918 $ 10,313,580 Net pension liability(asset)-ending(a)-(b) $ 1,901,170 S 3,453,597 $ 4,267,588 $ 4,166,370 FM Plan fiduciary net position as a percentage of the total pension liability 88.39% 77.74% 71.55% 71.23% '" Covered payroll $ 1,803,615 S 1,647,026 $ 1,510,925 $ 1,503,600 am Net pension liability as a percentage of payroll 105.41% 209.69% 282.45% 277.09% Annual Money-Weighted Rate of Return 18.32% 11.61% 4.52% 7.78% R Note-Additional years'information will be displayed as it becomes available to present 10 years. R 78 R Mq om r+n mm 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 rMIR 9/30/2017 9/30/2016 9/30/2015 9/30/2014 9/30/2013 $ 241,471 $ 248,453 $ 209,572 $ 206,976 $ 84,901 ran 939,389 874,946 855,433 859,397 1,237,145 - - - (386,259) - 147,327 138,245 - - - 148,378 230,533 (19,907) - - - 244,939 - - - (791,362) (950,417) (697,208) (773,904) (1,262,597) 685,203 786,699 347,890 (93,790) 59,449 12,679,398 11,892,699 11,544,809 11,638,599 17,041,668 $ 13,364,601 $ 12,679,398 $ 11,892,699 $ 11,544,809 $ 17,101,117 MR $ 578,155 $ 621,470 $ 618,054 $ 534,795 $ 475,794 147,327 138,245 127,668 125,387 - 96,436 84,939 79,610 76,054 15,348 n•► 950,106 568,335 (15,324) 759,444 1,563,721 (791,362) (950,417) (697,208) (773,904) (1,262,597) (58,416) (67,029) (49,324) (36,403) (76,889) 922,246 395,543 63,476 685,373 715,377 8,545,787 8,150,244 8,086,768 7,401,395 11,315,559 $ 9,468,033 $ 8,545,787 $ 8,150,244 $ 8,086,768 $ 12,030,936 `=' $ 3,896,568 $ 4,133,611 $ 3,742,455 $ 3,458,041 $ 5,070,181 "" 70.84% 67.40% 68.53% 70.05% 70.35% $ 1,539,919 $ 1,415,650 $ 1,396,624 $ 1,267,568 $ 613,927 min 253.04% 291.99% 267.96% 272.81% 825.86% 11.26% 7.05% -0.19% 10.40% 13.50% ruin Fmt) 79 WR Pam CITY OF EDGEWATER,FLORIDA FM Required Supplementary Information(unaudited) Firefighters'Pension Trust Schedules of Changes in the City's Net Pension Liability and Related Ratios am Reporting Period Ending 9/30/2022 9/30/2021 9/30/2020 9/30/2019 Measurement Date 9/30/2021 9/30/2020 9/30/2019 9/30/2018 Total pension Iiability Service cost $ 388,119 $ 393,523 $ 349,645 $ 354,548 Interest 1,135,760 1,081,097 1,011,898 922,206 Share Plan Allocation 130,864 110,814 98,967 96,388 Changes of Benefit Terms 437,981 Differences between Expected and Actual Experience 288,633 (27,143) (172,618) (89,479) Changes of assumptions 442,448 (166,848) 563,502 - m Contributions-buy back 48,403 24,931 17,854 17,703 Benefit payments,including refunds of employee contributions (837,563) (476,428) (510,414) (566,702) Net change in total pension liability 1,596,664 939,946 1,796,815 734,664 Total pension liability,beginning 15,696,313 14,756,367 12,959,552 12,224,888 Total pension liability,ending(a) $ 17,292,977 $ 15,696,313 $ 14,756,367 $ 12,959,552 Plan fiduciary net position Contributions-employer $ 353,847 $ 434,699 $ 409,471 $ 358,424 Contributions-state 186,156 166,106 154,258 151,680 AM Contributions-employee 104,018 103,245 105,323 91,166 Contributions-buy back 48,403 24,931 17,854 17,703 Net investment income 3,158,726 2,147,750 531,717 1,618,036 Benefit payments,including refunds of employee contributions (837,563) (476,428) (510,414) (566,702) Administrative expense (57,600) (67,890) (53,585) (49,647) ,.■, Net change in plan fiduciary net position 2,955,987 2,332,413 654,624 1,620,660 Plan fiduciary net position,beginning 17,668,275 15,335,862 14,681,238 13,060,578 Plan fiduciary net position,ending(b) $ 20,624,262 $ 17,668,275 $ 15,335,862 $ 14,681,238 F= Net pension liability(asset)--ending(a)-(b) $ (3,331,285) $ (1,971,962) $ (579,495) $ (1,721,686) Plan fiduciary net position as a percentage of the total pension liability 119.26% 112.56% 103.93% 113.29% Covered payroll $ 1,733,638 $ 1,720,751 $ 1,755,385 $ 1,674,877 Net pension liability as a percentage of payroll -192.16% -114.60% -33.01% -102.79% Annual Money-Weighted Rate of Return 17.98% 14.00% 3.61% 12.44% Note-Additional years'information will be displayed as it becomes available to present 10 years. 80 fxm FREI 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 9/30/2017 9/30/2016 9/30/2015 9/30/2014 9/30/2013 rR $ 358,456 $ 322,776 $ 317,342 $ 323,511 $ 300,940 825,460 752,753 715,242 652,070 601,821 92,260 84,235 90,777 88,962 - 473,491 (45,934) (367,566) - - - 147,249 - - - 8,544 9,721 - - - (362,003) (312,107) (210,052) (222,096) (288,611) 1,396,208 958,693 545,743 842,447 614,150 10,828,680 9,869,987 9,324,244 8,481,797 7,867,647 $ 12,224,888 $ 10,828,680 $ 9,869,987 $ 9,324,244 $ 8,481,797 $ 317,000 $ 358,086 $ 354,899 $ 392,863 $ 469,302 147,551 139,527 150,763 155,382 129,103 117,483 107,966 93,950 88,869 87,309 8,544 9,721 - - - 1,734,571 1,143,088 (536,507) 1,160,776 766,338 (362,003) (312,107) (210,052) (222,096) (288,611) (44,046) (58,960) (48,746) (44,645) (18,869) 1,919,100 1,387,321 (195,693) 1,531,149 1,144,572 11,141,478 9,754,157 9,949,850 8,418,701 7,274,129 $ 13,060,578 $ 11,141,478 $ 9,754,157 $ 9,949,850 $ 8,418,701 $ (835,690) $ (312,798) $ 115,830 $ (625,606) $ 63,096 r+a 106.84% 102.89% 98.83% 106.71% 99.26% $ 1,802,605 $ 1,799,429 $ 1,579,650 $ 1,467,330 $ 1,455,154 -46.36% -17.38% 7.33% -42.64% 4.34% 15.51% 11.64% -5.33% 13.59% 10.25% MR n.m faq 81 ,aa CITY OF EDGEWATER,FLORIDA Required Supplementary Information(unaudited) Schedules of General Employees'Contributions R' Reporting Period Ending September 30,2022 September 30,2021 September 30,2020 September 30,2019 Measurement Date September 30,2021 September 30,2020 September 30,2019 September 30,2018 Actuarially Determined Contribution(ADC) $ 755,898 $ 793,736 $ 799,181 $ 781,161 Contributions in Relation to ADC 755,895 793,823 799,291 782,806 Contribution Deficiency(Excess) $ 3 $ (87) $ (110) $ (1,645) Covered Payroll $ 110,371 $ 102,558 $ 98,612 $ 98,639 Contributions as a Percentage of Covered Payroll 684.87% 774.02% 810.54% 793.61% Notes to Schedule: Valuation Date: 10/12021 Actuarially determined contribution rates are calculated as of October 1,two years prior to the end of the fiscal year in which contributions are reported. Additional years'information will be displayed as it becomes available to present 10 years. r•. Methods and assumptions used to determine contribution rates: Funding Method: Entry Age Normal Actuarial Cost Method Interest-A half year,based on the current 6.25%assumption. Salary-A full year,based on the current average assumption of 4.0%. rw Mortality: PubG.H-2010 for Employees Interest Rate: 6.25%per year compounded annually,net of investment related expenses. Normal Retirement: Age Retirement Probability om 55 50% 56-59 0% 60 and older 100% In addition to the above table, 100%Retirement is assumed upon the completion of 25 years "" of Credited Service. Salary Increases: 4%per year. Termination Rates: None assumed. RM Early Retirement: None assumed. Actuarial Asset Method: All assets are valued at fair value with an adjustment made to uniformly spread actuarial investment gains and losses(as measured by actual fair value investment return against expected fair value investment return)over a four-year period. Disability Rates: 0.30%-1.55% Poo PM PM 82 �+ FER MM fan September 30,2018 September 30,2017 September 30,2016 September 30,2015 September 34,2014 September 30,2017 September 30,2016 Se_pt_em_ber 30,2015 September 30,2014 September 30,2013 n� $ 744,629 $ 667,440 $ 657,825 $ 719,822 $ 766,179 744,629 667,440 661,699 713,396 772,605 $ (3,874) $ 6,426 $ (6,426) $ 104,603 $ 193,713 $ 236,414 $ 349,034 $ 341,408 711.86% 344.55% 279.89% 204.39% 226.30% fAq F" f" F" MR PER FE" 83 FAM, RM CITY OF EDGEWATER,FLORIDA Required Supplementary Information(unaudited) Schedules of Police Officers'Contributions am Reporting Period Ending September 30,2022 September 30,2021 September 30,2020 September 30,2019 Measurement Date September 30,2021 September 30,2020 September 30,2019 September 30,2018 Actuarially Determined Contribution(ADC) $ 1,016,434 $ 999,201 $ 891,041 $ 781,148 r.e Contributions in Relation to ADC 1,016,434 999,201 891,041 781,147 Contribution Deficiency(Excess) $ - $ - $ - $ 1 Covered Payroll $ 1,9I4,198 $ 1,803,615 $ 1,647,026 $ 1,510,925 Contributions as a Percentage of Covered Payroll 53.10% 55.40% 54.10% 51.70% Notes to Schedule: Valuation Date: 10/1/2021 Actuarially determined contribution rates are calculated as of October 1,two years prior to the end of the fiscal year in which contributions are reported. p.0 Additional years'information will be displayed as it becomes available to present 10 years. Methods and assumptions used to determine contribution rates: Funding Method: Entry Age Normal Actuarial Cost Method. New UAAL amortization amounts are established according to the following amortization Amortization Method: periods: Experience: 10 years Assumption/Method Changes:20 years °" Benefit Changes:30 years Mortality: PubS.H.-2010 Combined Healthy. Interest Rate: 7.4% per year compounded annually,net of investment related expenses. wm Retirement Age: Years Eligible for Normal Retirement Retirement Probability 1-2 50% more than 2 100% on In addition to the above, 100%Retirement is assumed upon the attainment of age 55 if eligible to retire. Early Retirement: None assumed Salary Increases: 14%for less than 2 years credited service. AM 6.5%for 2 years to 9 years of credited service. 4%for 10 years or more of credited service Actuarial Asset Method: All assets are valued at fair value with an adjustment made to uniformly spread actuarial investment gains and losses(as measured by actual fair value investment return against expected FM fair value investment retum)over a four-year period. Termination Rates: 10%for less than 10 years credited service. 1%per year thereafter Disability Rates: 0.82%-8.45% ffim e.. 0M 84 ..� September 30,2018 September 30,2017 September 30,2016 September 30,2015 September 30,2014 September 30,2013 September 30,2017 September 30,2016 September 30,2015 September 30,2014 _September 30,2013 September 30,2012 S 777,361 $ 742,241 $ 746,047 $ 768,235 $ 766,878 $ 874,513 777,360 578,155 621,470 745,722 660,182 768,448 $ 1 $ 164,086 S 124,577 $ 22,513 $ 106,696 $ 106,065 $ 1,503,600 S 1,539,919 S 1,415,650 S 1,396,624 $ 1,267,568 S 1,267,568 51.70% 37.54% 43.90% 53.39% 52.08% 60.62% rmt r+4 rM9 rWO rE4 rR M r+r r=4 MR rMR rm 85 CITY OF EDGEWATER,FLORIDA Required Supplementary Information(unaudited) Schedules of Firefighters'Contributions Reporting Period Ending September 30,2022 September 30,2021 September 30,2020 September 30,2019 Measurement Date September 30,2021 September 30,2020 _September 30,2019 September 30,2018 Actuarially Determined Contribution(ADC) $ 428,642 $ 409,139 $ 531,712 $ 423,048 roc+ Contributions in Relation to ADC 428,642 409,139 489,991 464,763 Contribution Deficiency(Excess) $ - $ - $ 41,721 $ (41,715) Covered Payroll $ 1,839,664 $ 1,733,638 $ 1,720,751 $ 1,755,385 Contributions as a Percentage of Covered Payroll 23.30% 23.60% 28.48% 26.48% Notes to Schedule: Valuation Date: 10/1!2021 Actuarially determined contribution rates are calculated as of October 1,two years prior to the end of the fiscal year in which contributions are reported. Additional years'information will be displayed as it becomes available to present 10 years. Methods and assumptions used to determine contribution rates: Funding Method: Entry Age Normal Actuarial Cost Method. ao Amortization Method: All new UAAL amortization bases are amortized over 15 years Mortality: PubS.H-2010 Combined Healthy. Interest Rate: 7.00% per year compounded annually,net of investment related expenses. Normal Retirement: Years Eligible for Normal Retirement Retirement Probability �+ 0 60% 14 0% 5 and greater 100% In addition to the above,100%Retirement is assumed upon the attainment of age 55 with 5 years of Credited Service. Disability Rates: 0.06%-.36% Payroll Growth: None Asset Smoothing Methodology: The Actuarial Value of Assets is brought forward using the historical four-year geometric "" average of Fair Value Returns(net-of-fees).Over time,this may result in a negligible bias that is above or below the FairValue of Assets. Salary Increases: 5.5%for less than 10 years credited service. �. 5.0%for 10-15 years credited service. 4.5%for 15 years or greater of credited service. Final Salary Load: No load for 0 years of credited service. 10.0%for less than 10 years of credited service. 20.0%for 10 or more years of credited service. Termination Rates: 7.5%for less than 5 years credited service. 2.0%for 5 years or greater of credited service. Commencing at eligibility for Early Retirement,Members are assumed to retire with an immediate benefit at the rate of 5%per year. �o 86 MR fm rim September 30,2018 September 30,2017 September 30,2016 September 30,2015 September 30,2014 September 30,2013 September 30,2017 September 30,2016 September 30,2015 September 30,2014 September 30,2013 September 30,2012 s" $ 413,695 $ 389,363 $ 430,063 $ 407,550 $ 432,862 $ 534,041 413,716 372,292 413,378 414,885 459,283 534,041 $ (21) $ 17,071 $ 16,685 $ (7,335) $ (26,421) $ - am $ 1,674,877 $ 1,802,605 $ 1,799,429 $ 1,579,650 $ 1,467,330 $ 1,455,I54 24.70% 20.65% 22.97% 26.26% 31.30% 36.70% fan ra" FER (En f=Q rte► M" fR M� PIP FM 87 rM CITY OF EDGEWATER,FLORIDA to Required Supplementary Information(unaudited) Schedule of Changes in the City's Total OPE6 Liability and Related Ratios Reporting Period Ending September 30,2022 September 30,2021 September 30,2020 September 30,2019 September 30,2018 Measurement Date September 30,2021 September 30,2020 September 30,2019 September 30,201 B September 30,2017 4=4 Total OPEB Liahllity Serviceeost $ 283,368 E 211,112 S 106,831 $ 112,011 S 118,498 Interest 189,238 231,941 197,470 182,927 165,495 Differences between expected and actual experience 2,522,578 - 1,378,682 - - am Changes of assumptions (2,597,431) 2,045,375 178,595 (367,847) (454,875) Benefit payments-implicit rate subsidy (203,380) (189,191) (232.555) (214,336) (197,091) Net change in total OPER liability 194,373 2,299,237 1,629,023 (287,245) (367,973) Total OPEB liability-beginning 8.660,680 6,361,443 4,732,420 3,019,665 5,387,638 am Tow]OPEBliability-ending S 8.855,053 S 8,660,680 S 6,3Gi,443 $ 4,732,420 5019665 Covered cnployecpayroll(projected) 8,553,735 9,565,197 9,180,533 9,596,433 9,163,898 Total OPER liability as a percentage of covered 103.52°/. 90.54% 69.29°/. 49.31% 54.780% ra employee payroll Covered Employee Payroll was prajccted one year forward from the valuation date for die reporting period ending September 30,2022. Notes to Schedule: Valuation Date: 9!302021 Changer ofassumptfons.Changes of assumptions and other inputs reflect the effects of changes in the discos t rate each period.The fallowing are the discount rates used in am each period FY 2022 2.43% FY 2021 2.14% FY 2020 3.58% FY 2019 4.18% Q+ FY 2018 3.64% Benefit A4-menr5.The Pian sponsor did not provide actual net bemfits paid by the Plan for each fiscal year shown above.Expected net benefits payments produced by the valuation model for the same periods are shown in the table above. am D perettces Between Expectedand Actual Erperlence.Differences Between Expected and Actual Experience reflects the impact of changes to the census data from the prior valuation. m •l0 years of data will be presented as it becomes available. rte a.r rare w.. rsa >p 88 FM fan CITY OF EDGEWATER, FLORIDA Nonmajor Governmental Funds September 30, 2022 SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes. Manatee Conservation — This fund was established to account for revenues and associated expenditures for protecting Manatees and conserving natural habitat. Special Law Enforcement Trust Fund—This fund was established to receive revenues derived from confiscated property obtained during the enforcement purposes,exclusive of salaries and vehicles. Such purposes may include drug education programs such as DARE. Transportation Impact Fees Fund—This fund was established to account for road impact fees collected from new developments constructed in the City. �+ Police Impact fees Fund—This fund was established to account for police impact fees collected from new developments constructed in the City. Fire Impact Fees Fund—This fund was established to account for fire impact fees collected from new developments constructed in the City. Recreation Impact Fees Fund—This fund was established to account for recreation impact fees collected from new developments constructed in the City. Tree Mitigation Fund — This fund was established to account for revenues and associated expenditures of tree mitigation restricted to replace trees extinguished by development activities. ran DEBT SERVICE FUNDS are established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Debt Service Fund—This fund was established to account for the payment of general long-term debt principal and interest for the Animal Shelter. Mn CAPITAL PROJECTS FUNDS are established to account for resources used for the acquisition and construction of capital facilities by the City, except for those financed by proprietary funds. run Capital Projects Fund—This fund was established to account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. rAn mrn PRI rAq rAn 89 PM CITY OF EDGEWATER,FLORIDA Combining Balance Sheet Nonmajor Governmental Funds September 30,2022 Special Revenue Manatee Transportation Police Conservation SLETF _ Impact Impact ASSETS Cash $ 9,400 $ 46,393 $ 1,818,510 $ 512,804 Receivables - 1 28 8 Pot Due from other governments - - - - Total assets $ 9,400 $ 46,394 $ 1,818,538 $ 512,812 LIABILITIES Accounts payable $ - $ - $ - $ 589 Total liabilities - - - 589 FUND BALANCES Spendable: Restricted for: Public safety - 46,394 - - Debt service - - - - F' Manatee Conservation 9,400 - - - Tree mitigation - - - - Capital projects - - 1,818,538 512,223 Total fund balances 9,400 46,394 1,818,538 512,223 Total liabilities and fund balances $ 9,400 $ 46,394 $ 1,818,538 $ 512,812 90 Total Nonmajor Fire Recreation Tree Governmental Impact Impact Mitigation Debt Service Funds $ 327,855 $ 532,697 $ 108,111 $ 96,441 $ 3,452,211 5 8 2 1 53 2 2 $ 327,860 $ 532,705 $ 108,113 $ 96,444 $ 3,452,266 $ - $ - $ - $ - $ 589 589 p, - 46,394 - - 96,444 96,444 - - - - 9,400 108,113 - 108,113 327,860 532,705 - - 3,191,326 327,860 532,705 108,113 96,444 3,451,677 $ 327,860 $ 532,705 $ 108,113 $ 96,444 $ 3,452,266 p" s� CITY OF EDGEWATER,FLORIDA Combining Statement of Revenues,Expenses,and Changes in Fund Net Position Internal Service Funds For the Fiscal Year Ended September 30,2022 r Public Loss Fully Workers Works MIS FLEET Fund Insured Comp Complex Total Operating revenues: Billings to City departments $1,009,258 $1,242,392 $ 398,871 $2,855,910 $ 311,570 $ 590,000 $6,408,001 Operating expenses: Salaries and employee benefits 297,777 247,018 - 2,596,592 317,041 - 3,458,428 Supplies and materials 181,289 569,752 - - - - 751,041 Contract services 254,436 1,620 - 66,716 - - 322,772 Other services and charges 93,967 391,601 393,515 - - - 879,083 r Depreciation 19,397 5,655 - - - - 25,052 Total operating expenses 846,866 1,215,646 393,515 2,663,308 317,041 - 5,436,376 Operating income(loss) 162,392 26,746 5,356 192,602 (5,471) 590,000 971,625 Nonoperating revenues(expenses) Investment earnings 16 51 2 137 - 218 424 Interest expense (653) - - - - - (653) r Total nonoperating revenues (637) 51 2 137 - 218 (229) Income(loss)before contributions and transfers 16I,755 26,797 5,358 192,739 (5,471) 590,218 971,396 r"I Change in net position 161,755 26,797 5,358 192,739 (5,471) 590,218 971,396 Total net position-beginning 12,981 230,939 7,341 963,640 27,023 2,701,401 3,943,325 Total net position-ending $$ 1� $ 2� $ 12,699 $1,156,379 $ 21,552 $ 3,291,619 $4,914,721 r r n r 102 n Pon rM FOR Total Nonmajor Fire Recreation Tree Governmental Impact Impact Mitigation Debt Service Funds $ 327,855 $ 532,697 $ 108,111 $ 96,441 $ 3,452,211 5 8 2 1 53 - - - 2 2 $ 327,860 $ 532,705 $ 108,113 $ 96,444 $ 3,452,266 $ - $ - $ - $ - $ 589 - - - - 589 46,394 - - - 96,444 96,444 - 9,400 - - 108,113 - 108,113 "e 327,860 532,705 - - 3,191,326 327,860 532,705 108,113 96,444 3,451,677 $ 327,860 $ 532,705 $ 108,113 $ 96,444 $ 3,452,266 91 w4 Am CITY OF EDGEWATER,FLORIDA an Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Nonmajor Governmental Funds For the Fiscal Year Ended September 30,2022 P' Special Revenue PM Manatee Transportation Police Conservation SLETF Impact Impact REVENUES OR Taxes: Property $ - $ - $ - $ - Licenses and permits - - Fines and forfeitures - 17,111 - - Investment earnings - 9 260 64 Impact fees - - 647,894 280,089 Total revenues - 17,120 648,154 280,153 rRi EXPENDITURES Current: Public works - - - - Debt Service: Principal - - - - Interest - - - - Capital outlay - 24,342 - 16,924 Total expenditures - 24,342 - 16,924 expenditures - (7,222) 648,154 263,229 OTHER FINANCING SOURCES(USES) Transfers in - - - - Transfers out - - - - got Total other financing sources(uses) - - - - Net change in fund balances - (7,222) 648,154 263,229 Beginning fund balances 9,400 53,616 1,170,384 248,994 fm Ending fund balances $ 9,400 $ 46,394 $ 1,818,538 $ 512,223 �s► rte+ R P� pq 92 MR Total An Nonmajor Recreation Tree Governmental Fire Impact Impact Mitigation Debt Service Funds $ - $ - $ - $ 278,375 $ 278,375 8,305 - 8,305 mm - - - - 17,111 40 82 17 35 507 184,378 174,220 - - 1,286,581 184,418 174,302 8,322 278,410 1,590,879 FM - - 874 874 - 305,000 305,000 - - - 130,998 130,998 19,965 - - - 61,231 19,965 - 874 435,998 498,103 164,453 174,302 7,448 (157,588) 1,092,776 - - - 161,013 161,013 - (38,669) - - (38,669) - (38,669) - 161,013 122,344 164,453 135,633 7,448 3,425 1,215,120 163,407 397,072 100,665 93,019 2,236,557 $ 327,860 $ 532,705 $ 108,113 $ 96,444 $ 3,451,677 FOR P" 93 FEM 0M CITY OF EDGEWATER,FLORIDA Schedule of Revenues,Expenditures,and FM Changes in Fund Balances-Budget and Actual Annually-Budgeted Nonmajor Special Revenue Funds For the Fiscal Year Ended September 30,2022 rM Special Revenue Manatee Conservation SLETF Budgeted Amounts Variance with Budgeted Amounts Variance with Final Budget- Finat Budget- *� Actual Positive Actual Positive Original Final Amounts (Negative) Original Final Amounts (Negative) REVENUES Licenses and permits $ - S - 5 - $ - S - E - S - $ - �* Fines and forfeitures - - - - - - 17,111 17,111 Investment earnings - - - - - - 9 9 Impact fees Total revenues - - - - - - 17,120 17,120 FIM EXPENDITURES Current: Public Safety - - - - - - - - w Public Works Capital outlay - - - - 53,500 53,500 24,342 29,158 Tota]expenditures - - - - 53,500 53,500 24,342 29,158 Excess(deficiency)of revenues ro over expenditures - - - - (53,500) (53,500) (7,222) 46,278 OTHER FINANCING SOURCES(USES) Transfers out Total other financing sources(uses) - - - - - ro Net change in fund balances _ (53,500) (53,500) (7,222) 46,278 Beginning fund balances 9,400 9,400 9,400 - 53,616 53,616 53,616 - Ending fund balances(deficit) $9,400 S 9,400 $ 9,400 $ - $ 116 $ 116 $ 46.394 S 46,278 FIM A. 0M ra r4 go tin P� 94 v+ CITY OF EDGEWATER,FLORIDA n� Schedule of Revenues,Expenditures,and Changes in Fund Balances--Budget and Actual- Annually-Budgeted Nonmajor Special Revenue Funds(continued) For the Fiscal Year Ended September 30,2022 Special Revenue Transportation Impact Police Impact Budgeted Amounts Variance with Budgeted Amounts Variance with ran Final Budget- Final Budget- Actual Positive Actual positive Original Final Amounts (Negative) Original Final Amounts (Negative) REVENUES F41 Licenses and permits $ $ $ - $ - $ $ - $ - $ - Fines and forfeitures - - - - - - -Investment earnings - - 260 260 - 64 64 Impact fees - - 647,894 647,894 - - 280,089 280,089 Total revenues - 648,154 648,154 - 280,153 280,153 EXPENDITURES Current: p.t Public Safety - - - - - - - Public Works - - - - - - - - Capital outlay - - - 20,031 20,031 16,924 3,107 Total expenditures - - - 20,031 20,031 16,924 3,107 t� Excess(deficiency)of revenues over expenditures - 648,154 648,154 (20,031) (20,031) 263,229 283,260 OTHER FINANCING SOURCES(USES) Transfers out - - - - - - - - Pon Total other financing sources(uses) - - - - - - - Net change in fund balances - - 648,154 648,154 (20,031) (20,031) 26%229 283,260 Beginning fund balances 1,170,384 1,170,384 1,170,384 - 248,994 248,994 248,994 - Ending fund balances(deficit) $1,170,384 $1,170,384 $1,818,538 $ 648,154 $228,963 $228,963 $512,223 $ 283,260 ran r� rs1 n.n r� a+q �t 95 CITY OF EDGEWATER,FLORIDA Schedule of Revenues.Expenditures,and Changes in Fund Balances--Budget and Actual- Annually-Budgeted Nonmajor Special Revenue Funds(continued) For the Fiscal Year Ended September 30,2022 ■.w _Special Revenue Fire Impact Recreation Im act Budgeted Amounts Variance with Budgeted Amounts Variance with Final Budget- Final Budget- av Actual Positive Actual Positive Original Final Amounts (Negative) Original Final Amounts (Negative) REVENUES Licenses and permits S - 5 - $ - S - S - S - 3 Fines and forfeitures - - - - - - -investment earnings - - 40 40 - - 82 82 Impact fees 184,378 184,378 - 174,220 174,220 Total revenues - - 184,418 184,418 - - 174,302 174,302 .r EXPENDITURES Current: Public Safety 20,000 20,000 - 20,000 - - - - Public Works - - - - - - - - Capital outlay 70,000 70,000 19,965 50,035 - - Total expenditures 90,000 90,000 19,965 70,035 - - - - Excess(deficiency)of revenues over expenditures (90,000) (90,000) 164,453 254,453 - - 174,302 174,302 OTHER FINANCING SOURCES(USES) Transfers out - - - - 152,000 (188,292) (38,669) 149,623 Total other financing sources(uses) - - - - 152,000 (188,292) (38,669) 149,623 Net change in fund balances (90,000) (90,000) 164,453 254,453 152,000 (188,292) 135,633 323,925 Beginning fund balances 163,407 163,407 163,407 - 397,072 397,072 397,072 - Ending fund balances(deficit) $73,407 $73,407 $327,860 S 254,453 $549,072 $208,780 $532,705 S 323,925 m PM aW PM am a� »v MR 96 PM Mn me CITY OF EDGEWATER,FLORIDA MR Schedule of Revenues,Expenditures,and Changes in Fund Balances-Budget and Actual- Annually-Budgeted Nonmajor Special Revenue Funds(continued) For the Fiscal Year Ended September 30,2022 rlqA Special Revenue Tree Mitigation Total Budgeted Amounts .. Variance with Budgeted Amounts Variance with (Sol Final Budget- Final Budget. Actual positive Actual Positive Original Final Amounts (Negative) Original Final Amounts (Negative) REVENUES Mwf Licenses and permits $ - S - $ 8,305 $ 8,305 $ $ - $ 8,305 $ 8,305 Fines and forfeitures - - - - - 17,111 17,111 Investment earnings - 17 17 - 472 472 Impact fees - - 1,286,581 1,286,581 0M Total revenues - 8,322 8,322 - 1,312,469 1,312,469 EXPENDITURES Current: rim Public Safety - - - 20,000 20,000 - 20,000 Public Works - 70,000 874 69,126 - 70,000 874 69,126 Capital outlay - 143,531 143,531 61,231 82,300 Total expenditures - 70,000 874 69,126 163,531 233,531 62,105 171,426 t� Excess(deficiency)of revenues over expenditures - (70,000) 7,448 77,448 (163,531) (233,531) 1,250,364 1,483,895 OTHER FINANCING SOURCES(USES) Transfers out - - - 152.000 (188,292) (38,669) 149,623 r>� Total other financing sources(uses) - - 152,000 (188,292) (38,669) 149,623 Net change in fund balances - (70,000) 7,448 77,448 (11,531) (421,823) 1,211,695 1,633,518 Beginning fund balances 100,665 100,665 100,665 - 2,143,538 2,143,538 2,143,538 - Ending fund balances(deficit) $100,665 $ 30,665 $108,113 $ 77,448 $2.132.007 $1,721,715 S 3,355,233 S 1,633,518 rutR Mn rion fowl �A1�1 FMR am Glut Glut 97 FM MOP CITY OF EDGEWATER,FLORIDA MR Schedule of Revenues,Expenditures,and Changes in Fund Balances--Budget and Actual Annually-Budgeted Nonmajor Debt Service Fund For the Fiscal Year Ended September 30,2022 "" Variance with Final ■. Budgeted Amounts Budget- Actual Positive 4M Original Final Amounts (Negative) REVENUES Taxes: Property $ 274,897 $ 274,897 $ 278,375 $ 3,478 MM Investment earnings - - 35 35 Total revenues 274,897 274,897 278,410 3,513 EXPENDITURES P' Debt Service: Principal 305,000 305,000 305,000 - Interest 131,047 131,047 130,998 49 '® Total expenditures 436,047 436,047 435,998 49 Excess(deficiency)of revenues over expenditures (161,150) (161,150) (157,588) 3,562 OTHER FINANCING SOURCES(USES) Transfers in 161,013 161,013 161,013 - Net change in fund balances (137) (137) 3,425 3,562 Beginning fund balances 93,019 93,019 93,019 - Ending fund balances $ 92,882 $ 92,882 $ 96,444 $ 3,562 as Awa PM ac+ Ion P94 98 M CITY OF EDGEWATER,FLORIDA Schedule of Revenues,Expenditures,and Changes in Fund Balances—Budget and Actual Annually-Budgeted Major Capital Projects Fund For the Fiscal Year Ended September 30,2022 General Construction Variance with Final et- Budgeted Amounts Budget- Actual ud g Actual Positive Original Final Amounts (Negative) ►.► REVENUES Intergovernmental $ 184,000 $ 2,945,223 $ 739,995 $(2,205,228) Total revenues 184,000 2,945,223 739,995 (2,205,228) EXPENDITURES Capital outlay 562,000 3,626,115 718,684 2,907,43I re Other Services&Charges 1,415,000 1,547,032 949,364 597,668 Total expenditures 1,977,000 5,173,147 1,668,048 3,505,099 Excess(deficiency)of revenues over expenditures (1,793,000) (2,227,924) (928,053) 1,299,871 OTHER FINANCING SOURCES(USES) Transfers in 1,793,000 2,227,924 857,352 (1,370,572) Total other fmancing sources(uses) 1,793,000 2,227,924 857,352 (1,370,572) Net change in fund balance - - (70,701) (70,701) Beginning fund balances 520,883 520,883 520,883 - Ending fund balances $ 520,883 $ 520,883 $ 450,182 $ (70,701) ra, s� 99 MM CITY OF EDGEWATER, FLORIDA Internal Service Funds September 30, 2022 INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to City departments on a cost-reimbursement basis(including depreciation). Management Information Systems (MIS)—To account for data processing operations and the cost of computer services used by other City departments. Fleet—To account for the cost of operating a maintenance facility for automotive equipment used by other City departments/divisions. Loss Fund—To account for the general liability and property insurances of the City. Fully Insured—To account for the health,dental and life insurance of the City's employees and retirees. Workers Comp—To account for the workers compensation insurance of the City. Public Works Complex—To account for costs associated a public works complex. ru 100 ron Mn CITY OF EDGEWATER,FLORIDA Combining Statement of Net Position Internal Service Funds September 30,2022 Public Loss Fully Workers Works MIS FLEET Fund Insured Comp Complex Total ASSETS fowl Current assets: Cash $278,168 $472,059 $ i2,699 $1,379,865 $ 48,745 $1,192,919 $3,384,455 Receivables-net 3 4 - 15 - 18 40 Inventories - 11,303 - - - - 11,303 MR Prepaid items 39,385 8,180 - - - - 47,565 Total current assets 317,556 491,546 12,699 1,379,880 48,745 1,192,937 3,443,363 Noncurrent assets: rr Capital assets: Land and land rights - - - - - 936,903 936,903 Buildings and improvements 60,684 - - - - - 60,684 Machinery and equipment 312,228 138,859 - - - - 451,087 Construction in progress - - - - - 1,161,779 1,161,779 Less accumulated depreciation (358,187) (106,413) - - - - (464,600) Total capital assets(net of FEn accumulated depreciation) 14,725 32,446 - - - 2,098,682 2,145,853 Total noncurrent assets 14,725 32,446 - - - 2,098,682 2,145,853 Total assets $332,281 $523,992 $ 12,699 $1,379,880 $ 48,745 $3,291,619 $5,589,216 pq DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB $ 67,085 $ 89,446 $ - $ - $ - $ - $ 156,531 LIABILITIES mrn Current liabilities: Accounts payable $ 2,529 $ 94,003 $ - $ 223,501 $ 27,193 $ - $ 347,226 Accrued liabilities 11,904 10,609 - - - - 22,513 Compensated absences 25,854 26,308 - - - - 52,162 rw1 Accrued interest payable 45 - - - - - 45 Notes payable-current 11,172 - - - - - 11,172 Total current liabilities 51,504 130,920 - 223,501 27,193 - 433,118 rpt Noncurrent liabilities: Compensated absences 10,701 23,427 - - - - 34,128 Long-term debt payable after one year 11,409 - - - - 11,409 OPEB liability 118,067 157,423 - - - - 275,490 rm" Total noncurrent liabilities 140,177 180,850 - - - - 321,027 Total liabilities $ 191,681 $311,770 $ - $ 223,501 $ 27,193 $ - $ 754,145 DEFERRED INFLOWS OF RESOURCES F" $ 32,949 $ 43,932 $ - $ - $ - $ - $ 76,881 Net investment in capital assets $ (7,856) $ 32,446 $ - $ - $ - $2,098,682 $2,123,272 rXM Unrestricted 182,592 225,290 12,699 1,156,379 21,552 1,192,937 2,791,449 Total net position $ 174,736 $257,736 $ 12,699 $1,156,379 $ 21,552 $3,291,619 $4,914,721 rMn r� rpt 101 am PR CITY OF EDGEWATER,FLORIDA Combining Statement of Revenues,Expenses,and PM Changes in Fund Net Position Internal Service Funds For the Fiscal Year Ended September 30,2022 ap Public Loss Fully Workers Works MIS FLEET Fund Insured Comp Complex Total am Operating revenues: Billings to City departments $1,009,258 $1,242,392 $ 398,871 $2,855,910 $ 311,570 $ 590,000 $6,408,001 Operating expenses: Salaries and employee benefits 297,777 247,018 - 2,596,592 317,041 - 3,458,428 Supplies and materials 181,289 569,752 - - - - 751,041 Contract services 254,436 1,620 - 66,716 - - 322,772 Other services and charges 93,967 391,601 393,515 - - - 879,083 Depreciation 19,397 5,655 - - - - 25,052 Total operating expenses 846,866 1,215,646 393,515 2,663,308 317,041 - 5,436,376 Operating income(loss) 162,392 26,746 5,356 192,602 (5,471) 590,000 971,625 PM Nonoperating revenues(expenses) Investment earnings 16 51 2 137 - 218 424 Interest expense (653) - - - - - (653) am Total nonoperating revenues (637) 51 2 137 - 218 (229) Income(loss)before contributions and transfers 161,755 26,797 5,358 192,739 (5,471) 590,218 971,396 ^ Change in net position 161,755 26,797 5,358 192,739 (5,471) 590,218 971,396 Total net position-beginning 12,981 230,939 7,341 963,640 27,023 2,701,401 3,943,325 Total net position-ending $ 174,736 $ 257,736 $ 12,699 $1,156,379 $ 21,552 $ 3,291,619 $4,914,721 FM on 102 # CITY OF EDGEWATER,FLORIDA f§M Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended September 30,2022 Public r"111 Loss Fully Workers Works Nils FLEET Fund Insured Comp Complex Total Cash flows from operating activities: Receipts-customers and users $1,009,255 $1.242.393 $398,871 $2,855,906 $314,821 S 590,000 $6,41(,246 tM Payments-suppliers (529,036) (868,317) (393,515) (2,649,928) (289,848) (209,999) (4,940,643) Payments-employees (293,178) (244,652) - - - (537,830) Net cash provided(used)by operating activities 187,041 129,424 5,356 205,978 24,973 380,001 932,773 tnq Cash flows from capital and related financing activities: Acquisition and construction of capital assets - (13,478) - - - (657,267) (670,745) Interest payments on debt (675) - - - (675) Principal paid on debt (10,934) - - - - (10,934) Net cash used in capital and related financing activities (11,609) (13,478) - - (657,267) (682,354) Cash flows from investing activities: Interest on investments I6 51 2 137 - 218 424 Net increase(decrease)in cash and cash equivalents 175,448 115,997 5,358 206,115 24,973 (277,048) 250,843 Beginning cash and cash equivalents 102,720 356,062 7,341 1,173,750 23,772 1,469,967 3,133,612 Ending cash and cash equivalents S 278,168 S 472,059 $ 12,699 S 1,379,865 $ 48,745 S1.192.919 $3,384,455 Reconciliation of operating income(lass)to net cash provided(used)by operating activities- Operating income(loss) ctivities:Operatingincome(loss) S 162,392 $ 26,746 S 5,356 $ 192,602 $ (5,471) $ 590,000 $ 971,625 Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities: Depreciation and amortization 19,397 5,655 - - 25,052 (Increase)decrease in assets: Receivables-net (3) 1 (4) 3,251 l 3,246 Inventories - 22,829 - - - 22,829 Prepaid Items (1,145) (8,180) - - - (9,325) Increase(decrease)in liabilities: Accounts payable (329) 79,128 13,380 27,193 (210,000) (90,628) Accrued liabilities 2,130 879 - - - 3,009 F=1 OPEB liability 2,837 3,783 - - - 6,620 Compensated absences 1,762 (1,417) - 345 Total adjustments 24,649 102,678 - 13,376 30,444 (209,999) (38,852) Net cash provided(used)by operating activities S 187,041 $ 129,424 $ 5,356 $ 205,978 $ 24,973 $ 380,001 S 932,773 r+9 F3119 Fill" trot run 103 OM CITY OF EDGEWATER, FLORIDA Other Supplemental Schedules September 30, 2021 Fiduciary Funds—Pension Trust Funds Police, Firefighter and General Employees' Pension Funds — These funds are used to account for the accumulation of resources to be used for retirement annuity payments at the appropriate amounts and times in the future. Resources are contributed by employees at a rate fixed by law and by the City and the State at amounts determined by an annual actuarial study. 104 Rol rAq CITY OF EDGEWATER,FLORIDA Combining Statement of Fiduciary Net Position Pension Trust Funds September 30,2022 General Police Employees Officers Firefighters Total ASSETS Cash and cash equivalents $ - $ - $ 2,405 $ 2,405 Accrued income 42,609 30,583 29,638 102,830 Accounts receivable 3,872 - - 3,872 Investments,at fair value: Money market funds 462,008 557,642 781,668 1,801,318 Bonds: US Treasury notes 813,020 746,584 - 1,559,604 GNMA 1,184,397 767,287 98,006 2,049,690 Municipal bonds 30,415 21,725 74,970 127,110 Corporate bonds 1,977,516 1,397,010 3,860,787 7,235,313 Mutual fund-fixed income 1,935,921 - - 1,935,921 MR Mutual fund-equities 3,227,486 7,460,414 12,286,056 22,973,956 Commingled real estate fund 1,573,233 1,511,314 - 3,084,547 Total assets $ 11,250,477 $ 12,492,559 $ 17,133,530 $40,876,566 Fliq NET POSITION Restricted for pensions $ 11,250,477 $ 12,492,559 $ 17,133,530 $40,876,566 105 MM an CITY OF EDGEWATER,FLORIDA P Combining Statement of Changes in Fiduciary Net Position Pension Trust Funds For the Fiscal Year Ended September 30,2022 0M General Police ADDITIONS Employees Officers Firefighters Total Contributions: FM Employer $ 755,895 $ 1,016,434 $ 373,350 $ 2,145,679 Employee 2,759 114,851 136,072 253,682 State of Florida - 195,502 201,301 396,803 PM Total contributions 758,654 1,326,787 710,723 2,796,164 Investment earnings(loss): Interest and dividends 1,266,121 474,351 272,031 2,012,503 ' Net increase(decrease)in the fair value of investments (3,560,689) (2,706,613) (3,279,920) (9,547,222) Total investment earnings(loss) (2,294,568) (2,232,262) (3,007,889) (7,534,719) Less investment expenses (52,536) (55,074) (117,585) (225,195) Net investment earnings(loss) (2,347,104) (2,287,336) (3,125,474) (7,759,914) Total additions (1,588,450) (960,549) (2,414,751) (4,963,750) DEDUCTIONS Pension benefits 1,512,145 1,042,545 1,065,030 3,619,720 Administrative expenses 39,954 51,763 53,515 145,232 Total deductions 1,552,099 1,094,308 1,I18,545 3,764,952 r' Change in net position (3,140,549) (2,054,857) (3,533,296) (8,728,702) Net position-beginning 14,391,026 14,547,416 20,666,826 49,605,268 Net position-ending $11,250,477 $12,492,559 $17,133,530 $40,876,566 a.a �w 106 CITY OF EDGEWATER, FLORIDA Statistical Secton PM This part of the City of Edgewater, Florida's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information conveys about the City's overall financial standing and is unaudited. FEEI Contents Page(s) Financial Trends These schedules contain trend information to help the reader understand how the City's ran financial performance and well-being have changed over time. 108-117 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source,the property tax,and the municipal sales tax. 118.122 Debt Capacity r� These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 123-129 Demographic and Economic Information These schedules offer economic and demographic indicators to help the reader understand the environment within which the City's financial activities take place. 130.131 MOperating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 132.134 Sources:Unless otherwise noted,the information in these schedules is derived from the Annual Comprehensive Financial Report for the relevant fiscal year. Poll rAq f.r rnl� FAMI M 107 OR CITY OF EDGEWATER, FLORIDA Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2022 2021 2020 2019 Governmental Activities Net Investment in Capital Assets $ 42,612,125 $ 42,309,674 $ 42,407,665 $ 41,180,772 Restricted 7,467,107 5,050,309 3,093,854 3,474,736 Unrestricted 18,181,554 5,531,435 2,912,289 681,925 Total Governmental Activities Net Position $ 68,260,786 $ 52,891,418 $ 48,413,808 $ 43,973,583 rte+ Business-Type Activities Net Investment in Capital Assets $ 31,013,423 $ 29,362,572 $ 28,941,594 $ 28,541,299 Restricted 3,484,697 3,770,920 2,391,607 1,863,314 Unrestricted 17,502,799 14,144,962 9,764,845 9,348,106 Total Business-Type Activities Net Position $ 52,000,919 $ 47,278,454 $ 41,098,046 $ 39,752,719 �•, Total Net Investment in Capital Assets $ 73,625,548 $ 71,672,246 $ 71,349,259 $ 69,722,071 Restricted 10,951,804 8,821,229 5,485,461 5,338,050 Unrestricted 35,684,353 19,676,397 12,677,134 8,666,181 Total Net Position $ 120,261,705 $ 100,169,872 $ 89,511,854 $ 83,726,302 FM ON 108 FEM r� 2018 2017 2016 2015 2014 2013 $ 41,987,558 $ 41,696,283 $ 41,225,542 $ 41,696,833 $ 40,480,601 $ 43,278,270 pot 2,077,678 1,438,666 783,398 1,325,008 1,255,664 1,000,424 (3,647,781) (3,049,568) (2,675,115) (3,555,109) 2,163,549 1,511,496 req $ 40,417,455 $ 40,085,381 $ 39,333,825 $ 39,466,732 $ 43,899,814 $ 45,790,190 $ 28,304,107 $ 29,261,065 $ 29,634,955 $ 29,142,964 $ 27,962,252 $ 30,199,966 1,641,390 1,386,492 1,302,217 1,900,301 1,694,339 1,860,458 5,778,281 4,590,333 4,060,782 2,703,234 7,006,277 5,239,348 $ 35,723,778 $ 35,237,890 $ 34,997,954 $ 33,746,499 $ 36,662,868 $ 37,299,772 $ 70,291,665 $ 70,957,348 $ 70,850,497 $ 70,839,797 $ 68,442,853 $ 73,478,236 3,719,068 2,825,158 2,085,615 3,225,309 2,950,003 2,860,882 2,130,500 1,540,765 1,385,667 (851,875) 9,169,826 6,750,844 $ 76,141,233 $ 75,323,271 $ 74,331,779 $ 73,213,231 $ 80,562,682 $ 83,089,962 r•q 109 OR am fm CITY OF EDGEWATER, FLORIDA Changes in Net Position Last Ten Fiscal Years FM (accrual basis of accounting) Fiscal Year 2022 2021 2020 2019 MW Program Revenues Governmental Activities: Charges for Services: PM General Administrative $ 1,435,832 $ 1,181,901 $ 763,962 $ 709,513 Public Safety 737,428 739,019 721,016 762,914 Public Works 116,396 100,619 94,256 88,366 Culture and recreation 73,514 36,170 59,715 61,091 Operating Grants and Contributions 10,965,625 1,163,296 1,863,557 1,729,846 Capital Grants and Contributions 1,807,038 1,291,930 942,885 426,590 Total Governmental Activities Program Revenues $ 15,135,833 $ 4,512,935 $ 4,445,392 $ 3,778,320 Business-Type Activities: Charges for Services: Water/Sewer Utility $ 13,676,600 $ 12,533,913 $ 11,748,365 $ 11,084,416 Solid Waste Utility 3,803,187 3,685,613 4,011,195 3,767,242 Stormwater Utility 2,324,667 2,154,753 2,089,492 1,897,185 Capital Grants and Contributions 1,643,207 1,962,257 603,251 1,647,841 Total Business-Type Activities Program Revenues $ 21,447,661 $ 20,336,536 $ 18,452,303 $ 18,396,684 Total Government Program Revenues $ 36,583,494 $ 24,849,471 $ 22,897,695 $ 22,175,004 Expenses Governmental Activities: General administrative $ 3,464,788 $ 2,683,052 $ 2,953,514 $ 2,661,429 Culture and recreation 2,295,671 1,969,040 1,818,683 1,778,174 'O" Public Works 2,729,692 1,779,480 2,809,163 1,958,770 Public Safety 8,822,595 8,767,933 8,968,716 7,503,374 Community Redevelopment 187,878 177,892 116,568 85,486 M„ Interest on long-term debt 159,233 174,585 218,638 188,327 Total Governmental Activities Expenses $ 17,659,857 $ 15,551,982 $ 16,885,282 $ 14,175,560 Business-Type Activities: am Water/Sewer Utility $ 10,536,200 $ 9,436,947 $ 9,674,743 $ 9,086,584 Solid Waste Utility 3,137,039 2,806,094 2,815,826 2,939,631 Stormwater Utility 1,633,805 1,396,460 1,452,765 1,547,998 Total Business-Type Activities Expenses $ 15,307,044 $ 13,639,501 $ 13,943,334 $ 13,574,213 Total Government Expenses $ 32,966,901 $ 29,191,483 $ 30,828,616 $ 27,749,773 FM MR 110 a+ ain mn rin an MIR 2018 2017 2016 2015 2014 2013 r+a $ 197,951 $ 204,378 $ 193,140 $ 208,769 $ 178,890 $ 165,479 825,894 785,462 773,067 591,642 507,279 439,680 507,365 455,431 382,989 306,981 248,531 169,864 �1 69,562 62,967 51,991 - 14,896 13,162 754,837 3,899,222 832,376 643,363 442,201 586,345 1,244,620 1,550,007 702,644 1,689,173 333,284 515,775 $ 3,500,229 $ 6,957,467 $ 2,936,207 $ 3,439,928 $ 1,725,081 $ 1,890,305 rsn $ 10,216,833 $ 9,742,911 $ 9,284,327 $ 8,651,318 $ 8,383,806 $ 8,238,099 3,570,233 3,248,848 2,962,543 2,732,961 2,693,938 2,673,005 1,720,625 1,479,727 1,466,495 1,313,221 1,300,575 1,287,833 306,841 1,085,533 334,843 281,527 111,295 83,417 "R' $ 15,814,532 $ 15,557,019 $ 14,048,208 $ 12,979,027 $ 12,489,614 $ 12,282,354 $ 19,414,761 $ 22,514,486 $ 16,984,415 $ 16,418,955 $ 14,214,695 $ 14,172,659 �rt $ 2,445,179 $ 6,430,834 $ 3,112,845 $ 2,345,704 $ 2,060,966 $ 2,098,288 for 1,325,064 1,393,064 1,534,765 1,552,489 1,464,164 1,490,505 1,863,482 1,696,747 1,914,982 2,022,008 3,514,532 3,719,716 7,583,092 8,109,942 7,164,944 6,636,406 6,767,861 7,094,211 �.y 60,174 22,063 4,955 - - - 227,505 190,935 56,794 49,891 60,282 45,094 $ 13,504,496 $ 17,843,585 $ 13,789,285 $ 12,606,498 $ 13,867,805 $ 14,447,814 $ 9,218,732 $ 10,090,938 $ 8,697,283 $ 8,816,554 $ 8,459,432 $ 8,086,388 2,678,923 3,313,117 2,427,299 2,588,581 2,697,843 2,558,753 1,373,361 1,430,987 1,336,821 1,239,072 1,266,675 1,157,256 $ 13,271,016 $ 14,835,042 $ 12,461,403 $ 12,644,207 $ 12,423,950 $ 11,802,397 $ 26,775,512 $ 32,678,627 $ 26,250,688 $ 25,250,705 $ 26,291,755 $ 26,250,211 MIR m raa fw� 111 Am 0M am City of Edgewater, Florida Changes in Net Position(continued) Last Ten Fiscal Years MM (accrual basis of accounting) Fiscal Year 2022 2021 2020 2019 Not(Expense)lRevenue Governmental Activities $ (2,524,024) $ (11,039,047) $ (12,439,890) $ (10,397,240) Business-Type Activities 6,140,617 6,697,035 4,508,969 4,822,471 Total Government Net Expense $ 3,616,593 $ (4,342,012) $ (7,930,921) $ (5,574,769) OEM General Revenues and Other Changes in Net Position Governmental Activities: Property taxes $ 8,744,994 $ 8,108,454 $ 7,236,722 $ 6,641,903 am Utility and franchise taxes 4,263,593 3,887,989 3,716,918 3,723,199 Intergovernmental shared revenue 3,132,123 2,757,368 2,395,284 2,480,837 Investment earnings 86,591 33,895 57,294 106,239 Miscellaneous revenue 36,166 19,522 18,991 29,692 PM Transfers 1,629,925 709,429 2,156,666 971,498 Total Governmental Activities $ 17,893,392 $ 15,516,657 $ 15,581,875 $ 13,953,368 Business-Type Activities: Investment earnings $ 87,396 $ 23,189 $ 51,955 $ 37,838 Miscellaneous revenue 124,377 169,613 239,309 140,130 MR Transfers (1,629,925) (709,429) (2,156,666) (971,498) Total Business-Type Activities $ (1,418,152) $ (516,627) $ (1,865,402) $ (793,530) aq Total Government $ 16,475,240 $ 15,000,030 $ 13,716,473 $ 13,159,838 Change in Net Position Governmental Activities $ 15,369,368 $ 4,477,610 $ 3,141,985 $ 3,556,128 Business-Type Activities 4,722,465 6,180,408 2,643,567 4,028,941 Total Government Change in Net Position $ 20,091,833 $ 10,658,018 $ 5,785,552 $ 7,585,069 .p 112 wQ f" Fpq mn FIM r 2018 2017 2016 2015 2014 2013 $ (9,904,267) $ (10,886,118) $ (10,853,078) $ (9,166,570) $ (12,142,724) $ (12,557,509) r� 2,543,516 721,977 1,586,805 334,820 65,664 479,957 $ (7,360,751) $ (10,164,141) $ (9,266,273) $ (8,831,750) $ (12,077,0 _ $ (12,077,552) Min $ 6,025,937 $ 5,095,759 $ 4,572,959 $ 4,282,331 $ 4,120,260 $ 3,763,456 3,608,538 3,303,147 3,222,232 3,249,749 3,182,716 3,051,649 2,327,579 2,144,426 2,028,373 1,967,348 2,030,522 1,814,689 111,156 61,213 38,006 48,705 52,399 25,339 r*a 66,061 75,659 106,099 140,093 134,304 38,888 914,544 957,470 752,502 727,491 717,647 150,566 $ 13,053,815 $ 11,637,674 $ 10,720,171 $ 10,415,717 $ 10,252,348 $ 8,856,442 $ 39,732 $ 13,067 $ 5,704 $ 6,796 $ 6,517 $ 3,879 126,466 462,362 411,448 132,423 99,023 70,982 (914,544) (957,470) 752,502 (727,491) (717,647) 150,566 $ (748,346) $ (482,041) $ (335,350) $ (588,272) $ 612,107 $ (75,705) rim $ 12,305,469 $ 11,155,633 $ 10,384,821 $ 9,827,445 $ 9,640,241 $ 8,780,737 $ 3,149,548 $ 751,556 $ (132,907) $ 1,249,147 $ (1,890,376) $ (3,701,067) 1,795,170 239,936 1,251,455 (253,452) (546,443) 404,252 "m $ 4,944,718 $ 991,492 $ 1,118,548 $ 995,695 $ (2,436,819) $ (3,296,815) rmq r•t FUR r�s1 F=rt 113 am FMP PM CITY OF EDGEWATER, FLORIDA Fund Balances of Governmental Funds Last Ten Fiscal Years am (modified accrual basis of accounting) Fiscal Year 2022 2021 2020 2019 General Fund Nonspendable $ 20,148 $ 4,983 $ 11,315 $ 136,150 Restricted 285,828 94,850 650,834 51,165 Assigned 4,971,497 4,094,817 2,224,395 2,547,190 Unassigned 9,740,727 8,590,952 7,899,216 5,481,191 Total General Fund $ 15,018,200 $ 12,785,602 $ 10,785,760 $ 8,215,696 All Other Governmental Funds Restricted $ 4,549,305 $ 3,164,171 $ 1,752,258 $ 1,752,115 Committed $ 5,417,000 Assigned 4,630,227 - - - Total All Other Governmental Funds $ 14,596,532 $ 3,164,171 $ 1,752,258 $ 1,752,115 Total Governmental Funds $ 29,614,732 $ 15,949,773 $ 12,538,018 $ 9.967,811 FM 00 PM pia 114 O+ m MR ron FM, ?w 2018 2017 2016 2015 2014 2013 $ 14,485 $ 28,664 $ 30,041 $ 1,198 $ 422,120 $ 22,170 50,278 46,073 45,538 456,809 2,990 4,028 2,193,018 807,749 1,083,984 780,323 750,749 500,000 3,180,919 3,018,746 2,376,555 2,808,975 2,770,632 2,744,608 $ 5,438,700 $ 3,901,232 $ 3,536,118 $ 4,047,305 $ 3,946,491 $ 3,270,806 $ 2,937,739 $ 4,441,391 $ 746,891 $ 666,096 $ 898,969 $ 649,231 ne► $ 2,937,739 $ 4,441,391 $ 746,891 $ 666,096 $ 898,969 $ 649,231 $ 8,376,439 $ 8,342,623 $ 4,283,009 $ 4,713,401 $ 4,845,460 $ 3,920,037 r+n r+i Pon 115 OR FRD MP CITY OF EDGEWATER, FLORIDA Changes in Fund Balances of Govemmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) am Fiscal Year 2022 2021 2020 2019 Revenues Taxes $ 13,008,587 $ 11,996,443 $ 10,953,640 $ 10,365,102 Intergovernmental 14,731,863 4,074,319 4,888,172 4,582,125 Licenses and permits 1,096,132 1,011,043 595,206 556,145 Charges for services 2,610,790 2,123,609 2,126,525 2,108,874 Fines and forfeitures 95,977 105,392 106,211 155,058 Investment Earnings 86,166 31,147 54,564 105,120 Impact fees 1,286,581 1,257,087 422,811 151,056 Miscellaneous 80,918 67,477 123,672 65,978 Total Revenues $ 32,997,014 $ 20,666,517 $ 19,270,801 $ 18,089,458 Expenditures Current: �. General administrative services $ 3,130,507 $ 2,688,032 $ 2,679,056 $ 2,725,148 Legislative 92,439 102,180 85,624 99,990 Executive 660,158 647,166 558,331 757,013 Legal Counsel 140,313 131,493 116,745 113,682 FM Community Development 1,059,806 772,342 753,879 727,440 Cultural and recreation 1,762,895 1,399,914 1,379,292 1,238,162 Public works 2,018,913 862,385 1,817,029 944,770 on Public safety Law enforcement 4,996,765 4,723,307 4,252,364 3,990,383 Fire and emergency services 4,383,367 3,932,412 3,752,972 3,579,140 Code enforcement 180,587 169,672 173,677 168,193 Animal services 175,786 158,139 161,337 143,551 Debt service: Principal 597,880 566,002 514,289 476,647 Interest and Fiscal Charges 158,456 173,669 217,465 186,906 Capital outlay 1,014,107 1,637,478 1,638,952 2,305,359 Total Expenditures $ 20,371,980 $ 17,964,191 $ 18,101,012 $ 17,456,384 Excess of Revenues Over(tinder)Expenditures 12,625,034 2,702,326 1,169,789 633,074 Other Financing Sources(Uses) Transfers In $ 2,157,440 $ 1,651,270 $ 2,201,023 $ 1,305,186 Transfers Out (1,117,515) (941,841) (1,444,357) (346,888) Leases 620,000 Debt Issued - - - - General obligation note - - - - Sale of capital assets - - 23,752 - Total Other Financing Sources(Uses) 1,039,925 709,429 1,400,418 958,298 Net Change in Fund Balances $ 13,664,959 $ 3,411,755 $ 2,570,207 $ 1,591,372 Debt Service as a Percentage of Noncapital Expenditures 3.91% 4.53% 4.45% 4.38% 116 own rR Mpt MR 2018 2017 2016 2015 2014 2013 $ 9,634,475 $ 8,398,906 $ 7,795,191 $ 7,532,080 $ 7,302,976 $ 6,815,105 r'q 4,233,086 7,513,956 3,506,532 4,244,105 2,812,565 2,933,095 499,510 455,435 398,346 320,954 263,641 236,820 2,011,630 1,860,657 1,736,070 1,560,007 1,319,396 1,132,520 151,461 194,901 266,864 171,998 240,149 195,851 110,204 60,436 37,833 48,612 52,399 25,338 185,507 151,151 160,103 183,385 102,105 44,136 108,149 166,841 265,625 137,921 134,461 38,539 $ 16,934,022 $ 18,802,283 $ 14,166,564 $ 14,199,062 $ 12,227,692 $ 11,421,404 FlM $ 2,813,463 $ 5,697,152 $ 2,234,076 $ 2,198,362 $ 1,680,375 $ 1,590,455 103,794 109,377 99,820 91,954 96,597 93,377 521,481 560,939 619,910 614,357 567,755 558,357 P54 113,286 89,708 158,443 89,589 101,398 89,195 610,462 618,871 983,354 774,022 459,651 419,476 1,066,734 1,154,810 1,265,641 1,289,790 1,198,951 1,237,586 r+l 876,198 739,971 1,051,075 1,127,990 588,415 562,286 3,928,928 3,725,582 3,524,244 3,285,144 3,262,859 3,232,114 3,398,597 3,656,321 3,460,655 3,103,765 2,942,624 2,942,859 r� 142,907 113,069 125,334 103,301 75,725 144,716 129.980 113,304 109,865 107.507 110,809 132,794 520,000 231,586 375,675 151,007 418,092 445,714 "owl 225,844 140,369 49,848 47,542 47,644 52,715 3,335,123 4,583,159 1,249,938 2,501,416 889,268 1,320,804 $ 17,786,797 $ 21,534,218 $ 15,307,878 $ 15,485,746 $ 12,440,163 $ 12,822,448 (852,775) (2,731,935)_ (1,141,314) (1,286,684) (212,4 (1,401,044) $ 1,127,109 $ 3,401,828 $ 1,018,996 $ 1,342,491 $ 1,078,168 $ 676,660 (240,518) (2,479,558) (314,584) (615,000) (379,271) (568,994) 433,279 - 410,894 - - 5,436,000 - - 432,000 160,583 6,510 16,240 6,997 11,856 886,591 6,791,549 710,922 1,154,625 1,137,894 280,105 ran $ 33,816 $ 4,059,614 $ (430,392) $ (132,059) $ 925,423 $ (1,120,939) 5.16% 2.19% 3.03% 1.53% 4.03% 4.33% r"9 rmq 117 0m PM CITY OF EDGEWATER,FLORIDA Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years rR Fiscal Centrally Exemptions Total Taxable Total Year Real Personal Assessed Estimated Real Assessed Dfrect w� Ended _ Property Property Property Actual Value Property Value Tax Rate 2013 $ 869,698,616 5 44,709,945 $ 2.419,118 $ 916,827,680 $ 326,361.580 $ 590,466,100 6.5612 2014 893,847,254 46,863,494 2,615,633 943,326,381 330,091,016 613,235,365 6.9340 2015 934,739,055 49,197,000 3,085,203 987,021,258 334,889,928 652,131,330 6.7530 2016 985,904,666 53,797,067 3,590,304 1,043,292,037 343.753,169 699,538,868 6.7486 �+ 2017 1,152,173.102 82,395,064 4,403,969 1,238,972,135 374,040,287 864,931,848 6.7445 2018 1,245,616,754 92,091,785 4,487,966 1,342,196.507 394,071,253 948,125.254 7.0040 2019 1,344,364,414 100,155,114 4,497,383 1,449,016,911 408,076,606 1,040,940,305 6.9737 2020 1,479,116.741 108.444,187 4,439,949 1,592,000,877 429,755,270 1.162,245.607 6.9479 2021 1,579,632,391 118,653,510 4,554,064 1,702,839,965 444,395,076 1,258.444.889 6.9284 2022 1,817.976.793 134,724,089 4,923,275 1,957,624,157 470,344,120 1,487,280,037 6.5230 Source:Volusia County Property Appraiser's Office&City of EdgewaterACFRs. IMP P� Aw ma r3R oft PM 118 PM rmw� CITY OF EDGEWATER, FLORIDA Tax Revenues by Source of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) r� Fiscal Year Ended Utility and franchise Intergovernmental September 30 Property Taxes taxes Revenue Total 2013 $ 3,763,456 $ 3,051,649 $ 2,933,095 $ 9,748,200 n� 2014 4,120,260 3,182,716 2,812,565 10,115,541 2015 4,282,331 3,249,749 4,244,105 11,776,185 2016 4,572,959 3,222,232 3,506,532 11,301,723 PM1 2017 5,095,759 3,303,147 7,513,956 15,912,862 2018 6,025,937 3,608,538 4,233,086 13,867,561 Mn 2019 6,641,903 3,723,199 4,582,125 14,947,227 2020 7,236,722 3,716,918 4,888,172 15,841,812 2021 8,108,454 3,887,989 4,074,319 16,070,762 2022 8,744,994 4,263,593 14,731,863 27,740,450 na ran FMq rMq rM Pon 119 CITY OF EDGEWATER, FLORIDA Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years City of Debt Total Volusia Fiscal Edgewatert" Service Direct County(') School District Grand Year Operating Millage Millage Rate Millage Millage Other(3) Total 2013 6.5000 0.0612 6.5612 6.8809 7.8880 3.6967 25.0268 s+ 2014 6.8760 0.0580 6.9340 7.2709 7.3580 3.6028 25.1657 2015 6.7000 0.0530 6.7530 7.2709 7.3360 3.4160 24.7759 2016 6.7000 0.0486 6.7486 7.2709 7.1970 3.2492 24.4657 2017 6.7000 0.0445 6.7445 7.0520 6.5200 1.8643 22.1808 2018 6.7000 0.3040 7.0040 6.6464 6.2810 1.7675 21.6989 2019 6.7000 0.2737 6.9737 6.5420 6.0810 1.6756 21.2723 2020 6.7000 0.2479 6.9479 6.1509 5.9070 1.5842 20.5900 2021 6.7000 0.2284 6.9284 6.2986 5.8020 1.5210 20.5500 2022 6.3300 0.1930 6.5230 5.7134 5.4820 1.3852 19.1036 (1) Millage includes City of Edgewater General Fund. (2) Millage includes County General Fund, Library,Forever,Echo and Voter Approved Debt service. MP (3) Millage includes Ponce Inlet and Port Authority,Florida Inland Navigation District,St.Johns River Water Management Districts,Mosquito Control,and Hospital Operating. PM .. FM 120 Mn run fun CITY OF EDGEWATER, FLORIDA Principal Taxpayers Current Year and Nine Years Ago rMq 2022 2013 MM Real Percentage Real Percentage Property of Total Property of Total Assessed Assessed Assessed Assessed Taxpayer Valuation Rank Valuation Valuation Rank Valuation ri" Sun Hacienda Del Rio LLC $ 38,647,006 1 2.13% Brunswick Corporation $ 37,752,389 2 2.08% Florida Power&Light Company $ 35,481,366 3 1.95% $ 14,993,832 1 1.72% fW Boston Whaler Inc. $ 21,123,284 4 1.16% RJ Doughtery Associates Inc. $ 17,507,919 5 0.96% $ 5,944,337 2 0.68% HPA III Acquisitions LLC $ 6,340,474 6 0.35% 3050 Holdings LLC $ 5,355,019 7 0.29% $ 3,145,155 6 0.36% fun Revenue Properties Florida Shores LLC $ 5,112,771 8 0.28% $ 3,289,478 5 0.38% Brillance Edgewater LLC $ 5,027,856 9 0.28% Cubesmart LP $ 4,856,787 10 0.27% Edgewater Power Boats LLC $ 2,906,995 7 0.33% Bright House Networks LLC $ 3,490,519 3 0.40% Bellsouth Telecommunication LLC $ 2,589,732 10 0.30% Holly Investments LTD $ 2,669,209 8 0.31% rpt Transcapital Bank $ 2,637,047 9 0.30% Carder James C TR $ 3,307,988 4 0.38% $ 177,204,871 9.75% $ 44,974,292 5.17% raaart Total Assessed Valuation $ 1,817,976,793 $ 869,698,616 Source:Volusia County Properly Appraiser's Office and 2013 City of Edgewater ACFR. ran rxrf fall fat Mot MPP rat rRip 121 FM fm aA CITY OF EDGEWATER, FLORIDA Property Tax Levies And Collections Last Ten Fiscal Years as Percent of Percent of Total Current Current Tax Delinquent Total Total Tax a. Fiscal Tax Tax Collections Tax Tax Collections Year Levy Collections To Tax Levy Collections Collections To Tax LeMy 2013 $ 3,836,165 $ 3,558,179 92.75 % $ 170,189 $ 3,728,368 97.19 % MM 2014 4,216,606 4,072,002 96.57 % 13,726 4,085,728 96.90 % 2015 4,365,036 4,219,641 96.67 % 29,065 4,248,706 97.33 % lam 2016 4,686,910 4,387,633 93.61 % 143,061 4,530,694 96.67 % 2017 5,024,786 4,848,641 96.49 % 23,795 4,872,436 96.97 % "' 2018 5,791,342 5,589,817 96.52 % 35,559 5,625,376 97.13 % as 2019 6,352,439 6,206,999 97.71 % 41,382 6,248,381 98.36 % 2020 6,974,300 6,749,013 96.77 % 35,104 6,784,117 97.27 % ow 2021 7,787,046 7,514,400 96.50 % 32,674 7,547,074 96.92 % 2022 8,441,222 8,136,885 96.39 % 31,180 8,168,065 96.76 % ,m Source: Volusia County Property Appraiser and Tax Collector. ow am FM wR 122 Pon am flaq CITY OF EDGEWATER, FLORIDA Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years paq General Bonded Debt Outstanding M+ Percentage of Net Estimated General Actual Taxable Bonded Fiscal Actual Obligation Value of Debt Per M" Year Population(1) Taxable Value Bonded Debt Property Capita 2013 20,737 $ 590,466,100 $ 355,000 0.060% 17.12 riq 2014 20,748 613,235,365 335,000 0.055% 16.15 2015 20,958 652,131,330 315,000 0.048% 15.03 2016 21,280 699,538,868 295,000 0.042% 13.86 2017 21,509 864,931,848 3,667,000 0.424% 170.49 r� 2018 23,319 948,125,254 3,507,000 0.370% 143.36 2019 23,455 1,040,940,305 3,343,000 0.321% 135.37 r-"a 2020 23,818 1,162,245,607 3,175,000 0.273% 133.30 2021 23,310 1,258,444,889 2,998,000 0.238% 128.61 2022 23,855 1,487,280,037 2,816,000 0.189% 118.05 Source: Volusia County Property Appraiser and Tax Collector. (1) See Demographic and Economic Statlstics Information for references �f r� r*n MR Mn 123 MR CITY OF EDGEWATER,FLORIDA Ratios of Outstanding Debt by Type Last Ten Fiscal Years a. Governmental Activities Business Type Activities _ Special General Fiscal Notes Assessment Obligation Line Notes Year Payable Notes Note Leases of Credit Payable Leases 2013 $ 1,027,019 $ - $ 355,000 $ 287,916 $ - $ 4,142,717 $ 2014 1,225,000 - 335,000 226,843 - 4,455,000 - 2015 1,147,674 - 315,000 574,947 - 4,454,327 - 2016 1,063,288 - 295,000 294,150 - 13,692,712 - 2017 2,903,034 - 3,667,000 635,717 - 12,090,966 62,220 2018 2,784,638 - 3,507,000 458,923 - 10,430,362 50,282 2019 2,582,373 - 3,343,000 338,479 - 8,805,627 38,088 2020 2,375,050 - 3,175,000 809,055 - 7,291,950 25,647 2021 2,158,081 - 2,998,000 626,246 - 6,954,919 12,953 2022 1,938,288 - 2,816,000 439,000 - 5,791,712 24,292 Note-1: Details regarding the City's outstanding debt can be found In the notes to the financial statements. Note-2: Net of deferred amount refunding for FY2013 and prior years. (1) See Demographic and Economic Statistics for personal income and population data. a� ao, 124 +'^ am rim State Percentage Revolving Revenue Line of Personal Per Personal Loan Bonds of Credit Total Income(1) Capita(1) Income Population $ 4,403,042 $13,946,595 $ - $ 24,162,289 5.55% 1,165 $ 443,418,346 20,737 6,290,915 12,753,000 - 25,285,758 5.59% 1,219 457,057,692 20,748 F" 6,139,058 11,439,000 - 24,070,006 6.41% 1,148 513,471,000 20,958 5,866,152 - - 21,211,302 5.05% 997 499,079,840 21,280 5,894,079 - - 25,253,016 4.50% 1,174 514,323,208 21,509 5,635,032 - - 22,866,237 3.68% 981 562,990,617 23,319 8,840,950 - - 23,948,517 4.23% 1,021 566,274,065 23,455 8,826,049 - - 22,502,752 3.57% 945 629,795,556 23,818 rmn 8,403,950 - - 21,154,149 3.10% 908 682,703,280 23,310 7,899,609 - - 18,908,901 2.50% 793 757,447,431 23,855 rmq rim? rmq rmn rnai rmrt Mn ran M4 125 .m NIP CITY OF EDGEWATER, FLORIDA Direct and Overlapping Debt Net General Percentage City of Obligation Applicable to Edgewater Debt the City of Share of Governmental Unit Outstanding Edgewater Debt Volusia County $ - 3.04% $ - Volusia County School District - 0.00% - Subtotal Overlapping Debt - 3.04% - City Direct Debt 5.193,288 100.00% 5,193,288 Total Direct and Overlapping Debt $ 5,193,288 $ 5,193,288 Note:The county-wide debt amount is comprised of$0 of the County of Volusia's Limited Tax general obligation bonds. The County's debt is overlapping to the City's in relation to its taxable property value compared to the County's as a whole. The City's general obligation debt is listed above and is direct debt to the City and undedapping to the County. Source: Volusia County. .•a wn on r.o wo FM MR 126 +M CITY OF EDGEWATER,FLORIDA Pledged-Revenue Coverage Last Ten Fiscal Years PEM (dollars in thousands) Water and Wastewater Refunding Revenue Bond,Series 2016('} Less: Available Net Fiscal Gross Operating Impact Revenue& Debt Service Yearm RevenuesO) Expenses") Fees Im a_ pct Fees Principal Interest Total Coverage f=1 2013 $ 8,238,099 $ 5,140,343 $ 61,907 $ 3,159,663 $ 1,154,000 $ 378,526 $ 1,532,526 2.06 2014 8,383,806 5,348,671 80,102 3,115,237 1,273,000 368,499 1,641,499 1.90 2015 8,651,318 5,288,285 220,056 3,583,089 1,314,000 325,392 1,639,392 2.19 2016 9,284,327 5.457,041 102,899 3,930,185 1,473,500 260,024 1,733,524 2.27 port 2017 9,742,911 6,826,218 100,988 3,017,681 497,00 218,569 715,569 4.22 2018 10,216,833 6,019,564 231,688 4,428,957 856,000 198,881 1,054,881 4.20 2019 11,084,416 6,329,690 216,890 4,971,616 876,000 178,733 1,054,733 4.71 2020 11,748,365 6,800,478 389,302 5,337,189 896,000 158,125 1,054,125 5.06 rlw� 2021 12,533,913 6,693,068 1,494,459 7,335,304 916,000 137,057 1,053,057 6.97 2022 13,676,600 7,730,032 1,060,761 7,007,329 938,000 115,483 1,053,483 6.65 Note:Detail regarding the Citys outstanding debt can be found in the notes to the financial statements. (1) The two Water and Wastewater Refunding Revenue Bond Series(2009 and 2012)have been retroactively combined as of 9/30/2015 through a refinancing that occurred on 2125/2016. (2) The Water and Wastewater Refunding Revenue Bond has not been active for fourteen years. (3) According to the Resolution,Gross Revenues should exclude interest eamings on the Renewal and Replacement Fund and Construction Fund. (4) Total direct operating expenses excludes depreciation,amortization and overhead charges. r=M can r;l r+l nq n� M" 127 CITY OF EDGEWATER, FLORIDA Legal Debt Margin Information Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Years Assessed Valuation 2022 2021 2020 2019 Assessed taxable real property value $ 1,357,441,810 $ 1,057,679,617 $ 944,575,170 $ 860,690,466 Add back:exempt real property 460,534,983 421,155,760 399,789,244 384,926,288 Total assessed value of real property $ 1,817,976,793 $ 1,478,835,377 $ 1,344,364,414 $ 1,245,616,754 ro Legal debt margin: Debt limit $ 13,634,826 $ 11,091,265 $ 10,082,733 $ 9,342,126 Total net debt applicable to limit 5,193,288 5,782,327 6,359,105 6,263,852 �. Legal debt margin $ 8,441,538 $ 5,308,938 $ 3,723,628 $ 3,078,274 FM Total net debt applicable to the limit as a percentage of debt limit 38.09% 52.13% 63.07% 72.81% am Note 1: Per City of Edgewater City Charter, the City's outstanding legal debt should not exceed.75%of total assessed property value. Note 2: Total net debt applicable to limit includes govemmental activities notes payable and leases. am rQ ma ,su n.4 Baa 128 Pa POR mq Fon mn Fmq 2018 2017 2016 2015 2014 2013 $ 787,008,907 $ 696,387,893 $ 649,384,830 $ 607,562,754 $ 571,414,914 $ 550,695,413 365,113,414 348,289,949 336,519,836 327,176,301 322,432.340 319,003,203 $ 1,152.122,321 $ 1,044,677.842 $ 985,904,666 $ 934,739,055 $ 893,847,254 $ 869,698,616 $ 8,640,917 $ 7,835,084 $ 7,394,285 $ 7,010,543 $ 6,703,854 $ 6,522,740 6,291,638 6,570,034 1,357,438 1,722,621 1,451,843 1,314,935 $ 2,349,279 $ 1,265,050 $ 6,036,847 $ 5,287.922 $ 5,252,011 $ 5,207,805 83.85% 18.36% 24.57% 21.66% 20.16% 24.50% r� mn red a4 r� 129 fm CITY OF EDGEWATER, FLORIDA Demographic and Economic Statistics Last Ten Fiscal Years Total Per Capita County Calendar Personal Personal Median Unemployment School Year Population(1) Income Income(2) Age(3) Rate(4) Enrollment(5) 2013 20,737 $ 443,418,346 $ 21,765 47.9 6.8% 1,933 2014 20,748 457,057,692 22,029 46.6 5.9% 1,388 2015 20,958 513,471,000 24,500 49.1 5.8% 1,361 2016 21,280 499,079,840 23,453 49.8 5.1% 1,369 2017 21,509 514,323,208 23,912 51 4.2% 1,332 2018 23,319 562,990,617 24,143 50.9 3.1% 1,321 2019 23,455 566,274,065 25,914 49.9 3.2% 1,276 2020 23,818 629,795,556 26,442 51.1 5.6% 1,091 2021 23,310 682,703,280 29,288 51.1 4.3% 1,238 2022 23,855 777,458,305 32,591 55.3 2.5% 1,291 2022 Sources: (1)Source:University of Florida.Bureau of Economic and Business Research,2022 Estimate. (2)US Census Bureau,2016-2020 American Community Survey 5-Year Estimates. (3)US Census Bureau,2016-2020 American Community Survey 5-Year Estimates. (4)US Bureau of Labor Statistics,Local Area Unemployment Statistics,Volusia County,FL,Civilian Labor Force,not seasonally adjusted,September 2021. (5)Received from Schools Directly as of 9-30-21 (includes Discovery Academy,Indian River Elementary,and Edgewater Public Elementary) (*)2021 estimates not available at time of preperation so US Census Bureau,2015-2019 American Community Survey pop 5-Year Estimates were used for Personal Income and Median Age. R.o 130 �+ rzn+ CE, CITY OF EDGEWATER, FLORIDA Principal Employers Pin Current Year and Nine Years Ago 2022 2013 P'n Percentage Percentage Number of of Total County Number of of Total County Employer Employees(1) Employment Employees(2) Employment r-Em Boston Whaler 1,208.0 0.46% 0.00% Everglades Boats 317.0 0.12% 159 0.07% City of Edgewater 197.0 0.08% 194 0.08% VR EdgeWater Power Boats 16D.0 0.06% 92 0.04% Publix Supermarkets 155.0 0.06% 137 0.06% Winn Dixie Supermarkets 101.0 0.04% 95 0.04% Edgewater Elementary 97.0 0.04% 85 0.04% Indian River Elementary 82.0 0.03% 81 0.03% Southeast Volusia YMCA 62.0 0.02% 77 0.03% Troson Corporation DBA Alberto's Pizza 39.0 0.01% Dustin's Bar-B-Q - 30 0.01% Brunswick Commercial&Government Products - 105 0.04% Total 2,418.0 0.92% 1055 0.45% nm Total County Employment(3) 261,769 235,231 Sources: (1)Information provided by each company. (2)City of Edgewater ACFR 2012. (3)US Bureau of Labor Statistics,Local Area Unemployment Statistics,Volusia County,FL, labor force data,not seasonally adjusted, September 2021.2012 Data provided by Labor Market Statistics,Florida Research and Economic Database. (lei MIR rMn reM f�f 131 OR FM CITY OF EDGEWATER, FLORIDA Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years PM Fiscal Year Function/program 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 General Government: Mayor and Commission 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 City Manager 3.0 3.0 2.0 2.0 2.0 3.0 3.0 2.0 2.0 2.0 City Clerk 3.0 2.0 2.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 Support Departments �+ Finance 12.0 12.0 11.0 11.5 12.5 9.0 10.0 11.0 10.5 9.5 IT/MIS/GIS 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 2.0 Economic Development 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0 1.0 Human Resources 3.0 3.0 3.0 3.0 3.0 3.0 2.0 2.0 2.0 2.0 Community Development Planning and Zoning 3.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Building 4.0 4.0 3.0 4.0 4.0 4.0 4.0 4.0 4.0 3.5 �. Public Safety: Police Department 34.0 34.0 36.0 33.0 35.0 34.0 33.5 34.0 34.5 35.0 Fire Department 36.0 37.0 32.0 33.0 32.0 31.0 33.5 30.5 29.5 29.5 Animal Contr&Shelter 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0 Code Enforcement 3.0 3.0 3.0 3.0 3.0 2.0 1.0 2.0 2.0 2.0 Water Resources Water Utility 10.0 10.0 10.0 10.5 9.0 10.0 15.0 14.0 11.0 11.0 Wastewater Utility 15.0 15.0 14.0 14.0 14.0 15.0 15.0 15.0 16.0 15.0 Field Operations 11.0 11.0 8.0 10.0 12.0 10.0 11.0 11.0 11.0 11.0 Stormwater 7.0 7.0 8.0 9.0 10.0 9.0 11.0 10.0 9.5 9.5 Solid Waste Utility 11.0 11.0 13.0 22.5 19.5 25.0 24.0 23.5 26.0 26.0 Parks and Recreation 20.0 19.5 21.0 22.0 17.5 17.0 15.0 15.0 15.0 15.0 Fleet 4.0 4.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Public Works 9.0 9.0 9.0 9.0 8.0 7.0 9.0 7.0 8.5 9.0 Totals: 197.0 196.5 190.0 203.5 197.5 195.0 204.0 198.0 198.5 196.0 Source:Provided by the City of Edgewater Finance Department. 132 +�+ OR r-n MR CITY OF EDGEWATER,FLORIDA Operating Indicators by FunctionlProgrem Lest Tan Fiscal Years rxq Fiscal Year Functlon11�rogram 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 MVI General Government Employment Applications Received 509 858 906 1,401 922 428 471 638 665 641 Personnel Actions Processed 205 177 210 196 205 156 211 125 113 138 Accidents&Injuries Reviewed 33 59 73 56 53 61 49 54 51 60 Buslness Tax Receipts Issued 2,742 2,452 934 1,866 1,075 837 970 1,032 763 1,269 0" Checks Issued 1,842 1,565 1,683 1,430 1.413 1.810 2.369 2.316 2,279 2,414 Competitive Procurements(ITB.RFP,)Issued 12 14 11 18 8 16 13 11 23 Purchase Orders Issued 1.205 783 868 850 618 690 815 886 718 757 Public Safety pq Police Department Accidents 296 412 533 470 454 489 471 408 367 239 Traffic citations issued 1,195 2,192 1.806 2,001 3.215 4,677 3,100 3.017 3,450 3,168 Evidence Processed 1,063 1,127 1,996 2,592 2,824 2,799 2,654 2.178 2,153 1,803 Physical arrests 1.026 1,026 924 1,332 1,282 861 1,311 1,236 1,151 1,128 Calls for service 25.642 27,126 29,202 25.493 27,663 34.179 32,426 31,991 31,503 34,395 Fire Department Emergency responses 4.556 6,834 6,434 3,601 3,509 3,605 3,333 3,024 2,565 2,738 Average response time•minutes 331 525 5.40 5.31 5.50 4.48 5.08 4.28 4.32 4.19 fom Public Education Programs 19 15 38 80 72 68 62 71 67 64 Fire inspections 350 325 287 379 525 1,288 1,203 1,182 1,123 1,015 Public Works Mlles of street Resurfaced 7 0 11 0 0 0 2 2 3 1 Mites of unpaved streets 14 8 8 8 8 8 14 4 4 Sidewalks-new construction•miles - 3 4 0 1 0 4 1 1 Parks and Recreation Bail games.practices&field rentals 686 459 319 635 823 538 372 720 786 1.226 EventafPrograms 18 16 4 24 24 33 23 15 8 17 Min Water Resources Water main breaks 69 44 169 73 109 90 103 74 100 84 Average daily consumption-m9d 1.66 1,91 1.96 1.97 1.99 1.92 1.746 1.718 1.846 1.900 Number of water customers 11,727 11,571 10,995 10,661 10,864 10,757 10,879 10,724 10.632 10,603 New Connections 210 348 101 46 64 27 24 67 29 23 Sewer Resources New Connections 179 273 85 46 57 19 20 63 27 10 Average dally consumption-mgd 1.569 1.523 1.699 1.730 1.710 1.493 1.719 1,541 1A22 1,264 Number at customers 10,782 10.481 10,323 10.224 10,185 10,008 10.416 10,016 9,896 9.869 1`9111 Solid Waste Utility Number of Customers 10,388 10.386 10,094 9,502 9,707 9,920 9,631 9,591 9,463 9,451 Souroes:Provided by the respective departments of the City of Edgewater fwq Information not available. �1 r+i't MCI PRI 133 M0 W3 fm CITY OF EDGEWATER, FLORIDA Capital Asset Statistics by Function/Program Last Ten Fiscal Years MM Fiscal Year Functiontprogram 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 90 Police Police Stations i 1 1 1 1 1 1 1 1 1 PM Police Vehicles 40 42 40 34 33 34 30 30 29 27 Patrol Zones 2 2 2 2 2 2 2 2 2 2 Fire Fire Stations 2 2 2 2 2 2 2 2 2 2 PM Fire Vehicles 13 14 16 17 19 17 19 18 17 17 Public Works Vehicles 13 10 10 10 10 10 11 8 8 9 Parks and Recreation MR Vehicles 11 10 10 10 13 15 15 15 11 12 Parks Acreage 151 151 151 151 151 151 151 151 151 151 Parks 12 12 12 12 12 12 12 12 12 12 ow Baseball Fields 5 5 5 5 4 5 5 5 7 7 Tennis Courts 2 2 2 2 - 4 4 4 4 4 Basketball Courts 2 2 2 2 1 3 3 3 3 2 Racquetball Courts 2 2 2 2 - 4 4 4 4 4 P" Shuffleboard Courts 0 0 - - - - - - 2 2 Boat Ramps 3 3 3 3 3 5 5 5 5 5 Paddling Trails 6 6 6 6 6 6 6 6 - - o, Gymnasiums(YMCA) 1 1 1 1 1 1 1 1 1 1 Water Resources Water mains(miles) 175 170 168 166 165 165 165 275 275 275 Fire hydrants 884 884 874 860 719 719 720 720 718 701 s' Vehicles 27 26 26 26 26 26 26 26 26 24 Sewer mains(miles) 225 225 223 221 220 220 189 189 189 189 Reclaim Water(miles) 90 87 85 79 79 79 79 72 72 72 O, Stormwater Utility Storm Sewers(miles) 36 36 36 36 36 36 36 36 36 36 Vehicles 28 21 21 21 19 18 18 17 17 16 Solid Waste Utility *■+ Garbage Trucks 10 8 8 8 9 8 9 10 10 10 Other Vehicles 8 10 10 10 10 10 11 13 13 13 Ao Sources: Provided by the respective departments of the City of Edgewater nn 134 r+o JAMES MOORS INDEPENDENT AUDITORS'REPORT ON INTERNAL CONTROL OVER FINANCIAL, REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS To the Honorable Mayor,City Council, and City Manager. City of Edgewater,Florida: ,.� We have audited, 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Edgewater, Florida, (the City) as of and for the year ended September 30, 2022, and the related notes to the financial statements,which collectively comprise the City's basic financial statements, and have issued our report thereon dated January 1,2030. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements,we considered the City's internal control '^ over financial reporting(internal control)as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do A, not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis.A material weakness is a deficiency,or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any .., deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,and grant agreements,noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests 135 4M Fwa disclosed no instances of noncompliance or other matters that are required to be reported under MM Government Auditing Standards. Purpose of this Report OM The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. �d�eC ; Daytona Beach,Florida February 23,2023 FM PW fm am FM 136 +m+ am JAMES MOORS INDEPENDENT AUDITORS'MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550, RULES OF THE STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL To the Honorable Mayor,City Council,and City Manager, City of Edgewater,Florida: Report on the Financial Statements We have audited the financial statements of City of Edgewater, Florida(the City),as of and for the fiscal year ended September 30,2022,and have issued our report thereon dated January I,2030. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States; and Chapter 10.550,Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountants' Examination Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule,which are dated January 1, 2030,should be considered in conjunction with this management letter. OR Prior Audit Findings Section 10.554(1)(i)I.,Rules of the Auditor General,requires.that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. Official Title and Legal Authority Section 10.554(l)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The official title and legal authority for the primary government are discussed in Note 1 to the financial statements. Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and report the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific 137 as condition(s) met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1),Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor the City's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2.,Rules of the Auditor General,requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district �++ component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3Xb),Florida Statutes. Specific Special District Information-City of Edgewater Community Redevelopment Agency The required reporting items in accordance with Section 218.39(3)(c), Florida Statutes for the City of Edgewater Community Redevelopment Agency (the CRA) have been reported in the separately-issued MP audited financial statements of the CRA. Additional Matters PW Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements,or abuse,that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of ^, those charged with governance. In connection with our audit,we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee,members of the Florida Senate and the Florida House of Representatives,the Florida Auditor General, Federal and other granting agencies, Honorable Mayor, City Council, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. W{Q9�C *6 L8• f-I- r Daytona Beach,Florida February 23,2023 138 JAMESMOORE .� INDEPENDENT ACCOUNTANTS' EXAMINATION REPORT To the Honorable Mayor,City Council,and City Manager, City of Edgewater,Florida: We have examined the City of Edgewater, Florida's (the City)compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, for the year ended September 30, 2022. The City's management is responsible for the City's compliance with those requirements. Our responsibility is to express an opinion on the City's compliance based on our examination. Our responsibility is to obtain ., reasonable assurance by evaluating the City's compliance with those requirements and performing other procedures to obtain sufficient appropriate evidence to express an opinion that conveys the results of our evaluation based on our examination. Our examination was conducted in accordance with the attestation standards for a direct examination engagement established by the AICPA. Those standards require that we obtain reasonable assurance by evaluating whether the City complied with Section 218.415, Florida Statutes, Local Government Investment Policies, for the year ended September 30, 2022 and performing other procedures to obtain sufficient appropriate evidence to express an opinion that conveys the results of evaluation of the City's compliance based on our examination during the year ended September 30,2022.The nature,timing, and extent of the procedures selected depend on our judgment, including an assessment of risks of material noncompliance with those requirements, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. '^ We are required to be independent of City of Edgewater, Florida, and to meet our other ethical responsibilities,in accordance with relevant ethical requirements relating to our examination engagement. ., In our opinion,the City of Edgewater,Florida complied, in all material respects, with the aforementioned requirements for the year ended September 30,2022. �. Daytona Beach,Florida February 23,2023 i 139