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FY 2000 CAFRCITY OF EDGEWATER, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT L FOR THE YEAR ENDED L SEPTEMBER 30, 2000 r m an m m HAWK'S PARK RECREATIONAL CENTER Im in M 0101 -0139452 City of Edgewater, Florida Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2000 Prepared by: Finance Department Michele Goins, CPA Finance Director so 0101 - 0139452 This page intentionally left blank. w as do as Id r 1d no w no 0 L L� Introductory Section 0101 -0139452 This page intentionally left blank. J 0101 - 0139452 j a in t t 0101- 0139452 City of Edgewater, Florida Comprehensive Annual Financial Report Fiscal year ended September 30, 2000 Mayor Donald A. Schmidt City Council District 1 —James P. Brown District 2— Dennis Vincenzi District 3— Harriet Rhodes District 4— Judith R. Lichter City Manager Kenneth Hooper City Clerk Susan J. Wadsworth City Attorney Foley and Lardner �I� City Auditors Ernst & Young LLP mi This page intentionally left blank. 0101 - 0139452 as r City of Edgewater, Florida Comprehensive Annual Financial Report Fiscal year ended September 30, 2000 Table of Contents No Introductory Section im Pages Principal Officials ................................................................................. ............................... v y Table of Contents Certificate Achievement ............................................................. ............................... ....... xv Organization ...................................................................................... ............................... xix �r Letter of Transmittal ................................................................................... ............................... 1 -9 Financial Section r Report of Independent Auditors .................................................................... .............................15 General Purpose Financial Statements (Combined Statements — Overview) Combined Balance Sheet —All Fund Types and Account Groups ..... ............................... 18 -21 Sri Combined Statement of Revenues, Expenditures and Changes in Fund Balances —All Governmental Fund Types ................................ .............................22 Statement of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual— General Fund ...................................... .............................23 Combined Statement of Revenues, Expenses and Changes in Retained Earnings —All Proprietary Fund Types ....................................... ............................... Combined Statement of Cash Flows —All Proprietary Fund Types ....... 25 -26 .......................... Combined Statement of Changes in Plan Net Assets —All Pension TrustFunds ....................................................................................... ............................... 27 -28 Notes to Financial Statements Required Supplementary Information: Schedule of Pension Funding Progress ................................................... .............................59 Schedule of Employer Contributions Schedules of Pension Funding and Employer Contributions .................. .............................61 Combining, Individual Fund and Account Group Financial Statements and Schedules in Proprietary Fund Type: Enterprise Funds — Combining Sheet .............................................................. ............................... 66 -67 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ............................................................ .............................68 Combining Statement of Cash Flows ........................................... ............................... 69 -70 0101.0139452 - vii - Financial Section (continued) Statistical Section Statistical Information Pages ' Fiduciary Fund Types: General Governmental Expenditures by Function ........ ............................... 92 -93 Combining Statement of Plan Net Assets —All Pension Trust Funds .... .............................72 Table II – General Governmental Revenues by Source ................. ............................... Combining Statement of Changes in Plan Net Assets —All Pension Table III – TrustFunds .......................................................................................... .............................73 Supporting Schedules ' General Fixed Assets Account Group: ............................96, Assessed and Estimated Actual Value of Taxable Property .............................97 ' Schedule Source ................................................................................. Property Tax Rates —All Direct and Overlapping Governments .....................98 .............................78 Schedule by Function and Activity ......................................................... Special Assessments Collections ......................................... .............................99 p .............................79 Schedule of Changes by Function and Activity ...................................... .............................80 Computation of Overlapping Debt ....... ............................... ' General Long -Term Debt Account Group - Table VIII – ............................100 Demographic Statistics ......................... ............................... ............................101 Schedule of General Long -Term Debt ..................................................... Table IX – Property Value, Construction and Bank Deposits ............... ............................102 .............................82 General Fund: Table X – ' Schedule of Revenues and Other Financing Sources — Budget Table XI – Principal Taxpayers .............................. ............................... ............................104 and Actual ........................................................................................ ............................... Schedule of Expenditures— Budget and Actual .............................. ............................... 83 -84 85 -88 ' Statistical Section Statistical Information Table I – General Governmental Expenditures by Function ........ ............................... 92 -93 ' Table II – General Governmental Revenues by Source ................. ............................... 94 -95 Table III – Property Tax Levies and Collections .................................... a Table IV – ............................96, Assessed and Estimated Actual Value of Taxable Property .............................97 Table V – Property Tax Rates —All Direct and Overlapping Governments .....................98 Table VI – Special Assessments Collections ......................................... .............................99 p Table VII – Computation of Overlapping Debt ....... ............................... Table VIII – ............................100 Demographic Statistics ......................... ............................... ............................101 Table IX – Property Value, Construction and Bank Deposits ............... ............................102 Table X – Summary of Ten Largest Single Unit Water Users ............. ............................103 Table XI – Principal Taxpayers .............................. ............................... ............................104 Table XII – Miscellaneous Statistical Data .............. ............................... ............................105 Table XIII – Water and Sewer Revenue Bond Coverage ......................... ............................106 4 1� - viii - 0101 - 0139452 t r r i i r e e i Other Reports Pages Schedule of State Financial Assistance .......................... ............................... ............................109 Schedule of Expenditures of Federal Awards ................ ............................... ............................110 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards ......................................................................... ............................... 111 -112 ManagementLetter ............................................................................. ............................... 113 -114 Independent Auditors Required Disclosure in Accordance with Government Auditing Standards, 1994 Revision ................... ............................... 115 -116 0101 - 0139452 -lx- This page intentionally left blank. _ X _ 0101 -0139452 �f Ed i so City of Edgewater, Florida Certificate of Achievement ' For the year ended September 30, 1999 ' 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, Florida for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 1999. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of a state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must ' publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR 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 1 our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for ' another certificate. ' 0101 -0179452 - X111 - i This page intentionally left blank. E 0101- 0139452 J l l 1 n 1 1 I� Certificate of Achievement for Excellence in Financial Reporting 1 0002-=700 This page intentionally left blank. 0002-M700 1 1 1 L t 1 C Certificate of Achievement for Excellence in Financial Reporting Presented to City of Edgewater, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. �q3� �TAT 1 <c�` °F T °NTfE° S wi AN° sN G coR P° ArM .a resident CHICAGa Executive Director -XIV' - r This page intentionally left blank. 0101 - 0139452 40 1 1 1 1 1 - 1 1 1 1 1 1 1 1 1 1 1 1 Organization Chart of 4 This page intentionally left blank. 0101 - 0139452 •r 1 1 1 1 1 1 1 1 1 1 1 C i 1 1 C CITY OF EDGEWATER ojGANIZATIONAL CHART I CITIZENS OF EDGEWATER MAYOR AND CITY COUNCIL ADVISORYBOARDS CITYMANAGER CIIYATTORNEY CITY CLERK FINANCE PARKS & RECREATION/ ENVIRONMENTAL MAINTENANCE SERVICES PLANNINGIZONING RECREATION UTILITIES POLICE MAINTENANCE WATER FIREIRESCUE WASTEWATER CIVIL DEFENSE FIELD BUILDING PUBLIC WORKS PERSONNEL STORMWATER REFUSE STREET -Y1X- This page intentionally left blank. w 0002 - 700 r 7 n �I 1 I I t Letter of Transmittal 1 0101- 0139452 as This page intentionally left blank. to r Ow 0101. 0139452 1 L THE CITY OF EDGE WATER POST OFFICE BOX 100 - EDGEWATER, FLORIDA 32132 -0100 February 16, 2001 ' Honorable Mayor and Members of the City Council City of Edgewater, Florida The Comprehensive Annual Financial Report (CAFR) of the City of Edgewater, Florida, (hereinafter referred to as "the City"), for the fiscal year ended September 30, 2000, is submitted herewith pursuant to Chapter 10.500 of the Rules of the Auditor General of the State of Florida. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and ' account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. The comprehensive annual financial report is presented in four sections: introductory, financial, statistical and other reports. The introductory section includes this transmittal letter, the government's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the auditor's report on the financial statements and schedules. The statistical section includes selected financial and demographic ' information, generally presented on a multi -year basis. The other reports section includes various reports and schedules. This report includes all funds and account groups of the City. The City provides a full range of services. These services include police and fire protection; water and sewer services; reclaimed water services; sanitation services; stormwater management; the construction and maintenance of highways, streets, and infrastructure; recreational activities and cultural events. In addition to general government activities, the City Council has financial accountability and oversight of the Police Officers', Firefighters', and the General Employees' Retirement Systems; therefore, these activities are included in the reporting entity. t J Honorable Mayor and Members Of the City Council City of Edgewater, Florida Page 2 February 16, 2001 ECONOMIC CONDITION AND OUTLOOK The City is located in southeast Volusia County, adjacent to I -95 and south of New Smyrna Beach, along the Indian River and two miles west of the Atlantic Ocean. The City is within the economic zone of Central Florida which roughly follows Interstate 4 from Tampa through Orlando to the communities along the Atlantic coast in Volusia County. Edgewater has experienced a moderate rate of growth in the last five years. Edgewater's population during that period increased from 17,484 to 19,343, a 10.6% increase for the period or an average of 2.1 % per year over the last five years. A large and expanded paint factory, a building industry, boat building and other light manufacturing provide employment. NASA and related supporting enterprises at Cape Canaveral provide further employment opportunities. Many residents commute to Deland and Orlando for business employment. Edgewater Landing, an adult manufactured home community, was selected as one of "America's 50 Best Retirement Communities ". To the west, the City has annexed additional property near the Massey Airport. Widening of Indian River Boulevard by the FDOT is expected to commence in late 2001. Within the City limits, the South Campus of Daytona Beach Community College is planned for expansion and continues to meet the educational and commercial needs of a growing community. The community currently has a 2.9% unemployment rate, below the state average of 4.2 %. During the past three years, property taxable assessment values have increased 8.6 %. As the economy grows we expect the recent growth trends experienced by the City to continue. The City continues exploring several options to increase economic growth within the City and improve economic development within southeast Volusia County. Toward this goal the City's Economic Development Board has started to increase its level of activity and focus on action/result oriented initiatives. The City has also initiated many partnerships between various economic development agencies, local businesses and the City. In partnership with the Florida Inland Navigation District (FIND), and their infrastructure improvements of $1,000,000, the City is developing a business /industrial park. Phase I will consist of roadway drainage and underground utility improvements on the 230 acres of property recently acquired by FIND. Construction for Phase I is expected to begin in May, 2001. The proposed business /industrial park is to be located on a 400 acre tract of land zoned for industrial use. The proposed project will provide non - residential economic growth for the City and stimulate additional economic benefits for the Park Avenue corridor. The City has been in the process of providing infrastructure improvements (water, sewer, roads) from the airport to Dale Street/Park Avenue. The Daytona Beach Community College, which has a campus adjacent to the proposed project, may assist in attracting new jobs through the creation of a marine industry technology center on a portion of the proposed project. Honorable Mayor and Members Of the City Council City of Edgewater, Florida Page 3 February 16, 2001 MAJOR INITIATIVES For the Year The City has substantially completed construction of the $1.6 million Hawks Park Recreational Facility that under contract is staffed by the YMCA. The new facility is the first step in developing a 26 acre recreational complex. The 26 acre complex is designed, permitted and planned for additional softball fields, a swimming pool, racquet ball courts, general purpose athletic fields, and tennis facilities. The swimming pool should be completed by December, 2001. The regional partnership between the City and Volusia County for supplying water and sewer service to southeast Volusia County is working well. The regional approach has resulted in cost savings for both entities by eliminating the need for duplicating distribution/collection systems. The roadway, drainage and sanitary sewer improvements have been completed and installed throughout the Florida Shores subdivision. The result has been a significant increase in the �r property values for existing residents and an increase in the building of new homes. The City issued almost 200 new building permits during 2000. Due to the increased property values and City initiated cost savings programs, the City has reduced property taxes for three (3) Y Ir consecutive years (9.9% reduction). For the Future The City is planning the development of the baseball/softball fields adjacent to the Hawks's Park Recreational Center. The addition of these fields will allow the recreational activities to increase ib for the City. The fields should be constructed no later than 2002. The City also initiated the design and permitting for improvements to the City's reclaimed water system. This will result in improved reclaimed water service and savings of the potable water resource. L I Department Focus The Police Department has provided another excellent year of law enforcement service which is reflected in the recently published Crime Statistics. According to the Florida Department of Law Enforcement (FDLE), the City's crime index has decreased for the second year in a row to 543. The Fire/Rescue Department has continued to provide superior service throughout the community, including services for Advanced Life Support Emergency Medical Treatment. This past year, they responded to over 1,900 alarms in the City with an average response time of 4 minutes. In addition to responding to emergency and non - emergency incidents, Fire/Rescue personnel provide many other services to City employees and the community. Some of these Honorable Mayor and Members Of the City Council City of Edgewater, Florida Page 4 February 16, 2001 services are blood pressure screenings, CPR/First Aid training, disaster preparedness, Community Emergency Response Team (CERT) training and immunizations. Future programs to enhance the level of services to City residents include: the ability to complete extensive 12 lead EKG's and to transmit results to the physician from the patient's residence, expanded contract Fire/Rescue service to the unincorporated areas of the City, and to provide emergency transport of unstable medical/trauma patients to the emergency department. The Parks and Recreation Department was responsible for a variety of activities such as maintaining City parks, roadway medians and organizing soccer and baseball activities for Edgewater's youth. These activities allow many children the opportunity to participate in a variety of sports they may not otherwise have an opportunity to do so. In addition, Parks and Recreation personnel also assisted in the completion of the Hawk's Park Recreational Center. FINANCIAL INFORMATION City management is responsible for establishing and maintaining internal control designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control is designed to provide reasonable assurance, but not absolute assurance, that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. During previous years the City implemented investment policies in response to national events, improved internal control measures over cash and investments, and increased legislative review. Budgeting Controls. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City Manager has the authority to exercise legal budgetary control at the fund level. Authority to adjust the various fund budgets is held by the City Council. The legally adopted annual operating budgets consist of : (1) the general fund; (2) the water and sewer fund; (3) the refuse fund; and (4) stormwater management fund. The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbrance amounts lapse at year end. However, encumbrances generally are either absorbed or appropriated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, I the City continues to meet its responsibility for sound fiscal management. t Honorable Mayor and Members Of the City Council City of Edgewater, Florida Page 5 February 16, 2001 General Government Functions The following schedule presents a summary of General Fund revenues for the fiscal year ended September 30, 2000, and percent of the total amount and amount of increases and decreases in relation to prior year revenues. r GENERAL REVENUES BY SOURCE GENERAL FUND Increase Percent (Decrease) Revenue Source Amount of Total From 1999 Taxes $5,648,694 79% $131,721 Licenses and permits 267,252 3% 46,362 Intergovernmental revenues 663,079 10% (143,708) Charges for services 139,931 2% ( 1,508) Fines and forfeitures 77,659 2% ( 13,999) Miscellaneous revenues 305,469 4% 34,390 Totals $7,102,084 100% $ 53,258 Revenues for the General Fund totaled $7,102,084 (which excludes $459,726 in operating transfers ), an increase of $53,258. The increase is due to an increase of $131,721in tax collections and $46,362 in licenses and permits, along with a decrease of $143,708 in intergovernmental revenues. These items are combined with various increases and decreases in other revenues of $18,883. r L, Honorable Mayor and Members Of the City Council City of Edgewater, Florida Page 6 February 16, 2001 The following schedule presents a summary of General Fund expenditures for the fiscal year ended September 30, 2000, and percent of the total amount and amount of increases and decreases in relation to prior year expenditures. EXPENDITURES AND OTHER USES CLASSIFIED BY MAJOR FUNCTIONS GENERAL FUND Expenditures for the General Fund totaled $9,250,313 (which excludes paving and drainage related transfers of $353,429 to the Debt Service Fund and $1,178 to the Stormwater Management Fund), an increase of $2,445,805 over the previous year's expenditures, and $186,649 higher than budgeted. The net increase in expenditures is attributed to several factors: public safety expenditures were up $880,045, with the police department representing the majority of the increase due to improvements to the Police Pension Plan to bring it in conformity with recent Statute changes, as well as capital outlays up $866,117 due to the construction of the new Hawk's Park Recreational Center. Government Fund Balances. The General Fund's reserved/unreserved fund balance of $1,805,160 is lower than last year by $1,958,915. The decrease is primarily the result of capital outlay expenditures being budgeted from fund balance instead of increasing the City's debt. The City is still within its goal of an unreserved fund balance of 15% to 20% of operating expenditures. The undesignated fund balance is $1,275,405, which decreased $2,134,943 from last year's $3,410,348. Cash Management. Residual cash held during the year was invested primarily with the State Board of Administration. 1 Increase Percent (Decrease) Function Amount of Total From 1999 General Government $1,423,439 15% $ 229,047 Public Safety 4,164,037 45% 880,045 Transportation 667,425 7% 365,765 Culture/Recreation 728,209 8% 111,523 Capital Outlay 2,241,616 24% 866,117 Debt Service 25.587 1% (6,692) Totals $9,250,313 100% $2,445,805 Expenditures for the General Fund totaled $9,250,313 (which excludes paving and drainage related transfers of $353,429 to the Debt Service Fund and $1,178 to the Stormwater Management Fund), an increase of $2,445,805 over the previous year's expenditures, and $186,649 higher than budgeted. The net increase in expenditures is attributed to several factors: public safety expenditures were up $880,045, with the police department representing the majority of the increase due to improvements to the Police Pension Plan to bring it in conformity with recent Statute changes, as well as capital outlays up $866,117 due to the construction of the new Hawk's Park Recreational Center. Government Fund Balances. The General Fund's reserved/unreserved fund balance of $1,805,160 is lower than last year by $1,958,915. The decrease is primarily the result of capital outlay expenditures being budgeted from fund balance instead of increasing the City's debt. The City is still within its goal of an unreserved fund balance of 15% to 20% of operating expenditures. The undesignated fund balance is $1,275,405, which decreased $2,134,943 from last year's $3,410,348. Cash Management. Residual cash held during the year was invested primarily with the State Board of Administration. 1 1 F r it L t Honorable Mayor and Members Of the City Council City of Edgewater, Florida Page 7 February 16, 2001 Debt Administration. The City's general long -term debt totaled $7,854,845 at September 30, 2000, a decrease of $444,721. The debt consisted of expected employee benefits payable in future periods, capital road and drainage improvement bonds (Series 1995A and 1995B), and a note payable to Volusia County for the 800 MHZ Radio System. Risk Management. The City of Edgewater contracts for all known risk elements through the purchase of insurance from outside insurance companies. These policies carry low retentions with limits averaging $1,000,000 per risk insured. As a government entity, the City is protected by Florida's sovereign immunity statutes. Under these statutes, liability claims, under most cases, in excess of $100,000 per person or $200,000 per occurrence require that a claim bill be passed by the Florida legislature before judgment can be collected. The City contracts for its worker's compensation exposure through the Preferred Governmental Insurance Trust. The loss experience has been excellent over the previous two years and so the City elected to change to first dollar coverage beginning in October 1, 1997. A medical health and dental plan, as well as an employee assistance program (EAP), are provided to all full time employees. The medical plan provides for two options of coverage under either a Preferred Physician Organization (PPO) or Health Maintenance Organization (HMO) option. Utility Operations. The City's Water and Sewer Fund operations continue to report gains in the number of new customers connecting to the water and sewer system. As of year end, the City served almost 9,000 water customers, over 8,000 sewer customers, and 2,071 reclaimed water customers. The water and sewer rate structure continues to support the system's operational needs, debt service and renewal and replacement requirements. The City has had stable water and sewer rates since 1994. The City's stormwater utility support, the maintenance of the stormwater system and provide debt service for the City's proportionate share of the Florida Shores drainage improvements. Pension Trust Funds. The Municipal Police Officers' Retirement Trust Fund was created by Ordinance under the provisions of Chapter 185, Florida Statues. During the year, no revenues were derived from State of Florida contributions, interest and dividend earnings of $183,919, net change in fair value of plan assets was $(2,656), employees contributions of $76,890 and City contributions of $350,071. At September 30, 2000, the fund balance was $3,167,556. C L Honorable Mayor and Members Of the City Council City of Edgewater, Florida Page 8 February 16, 2001 The General Employees' Pension Trust Fund includes all full time City employees, except police officers, firefighters, City Manager, City Attorney, employees hired after October 1, 1996 and those employees not vested in the General Employees' Plan who opted to participate in the new General Employees' Money Purchase Plan and Trust established October 1, 1996. This plan, as well as the Police Officers' plan, are administered as Flexible Pension Investment contracts by The Principal Financial Group. During the year, the City contributed $301,864 to the general employees' plan, interest and dividends earnings were $594,145, while net change in fair value of plan assets was $(30,822). At September 30, 2000, the fund balance was $8,114,936. The Firefighters' Pension Fund was created by Ordinance under the provisions of Chapter 175, Florida Statutes. This plan is administered by the Firefighters' Pension Board. During the year, revenues were derived from State of Florida contributions of $13,141, interest and dividend earnings of $193, net appreciation in fair value of plan assets of $55,743, employees contributions of $40,695 and City contributions of $156,590. At September 30, 2000, the fund balance was $959,259. General Fixed Assets. The general fixed assets of the City are those fixed assets used in the performance of general governmental functions and exclude the fixed assets of the Enterprise Funds and the cost of , certain public domain or "infrastructure" general fixed assets which have been excluded from the General Fixed Assets Account Group in accordance with generally accepted accounting principles. As of September 30, 2000, the general fixed assets of the City amounted to , $23,097,105. This amount represents the original or estimated cost and is considerably less than present value. Depreciation of general fixed assets is not recognized in the City's accounting system. OTHER INFORMATION Independent Audit. State Statute requires an annual audit by independent certified public accountants. The accounting firm of Ernst & Young LLP was selected by the City Council. The audit was designed to meet the requirements set forth in State and Federal Statutes. The report of independent certified public accountants on the general purpose financial statements and combining and individual fund statements and schedules is included in the financial section of this report. Awards. 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 comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 1999. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of a state and local government financial reports. rj Honorable Mayor and Members Of the City Council City of Edgewater, Florida Page 9 February 16, 2001 In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Edgewater has received a Certificate of Achievement for the last sixteen consecutive years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the Finance. Department Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. '1 In closing, we would also like to thank the Edgewater City Council for their direction, interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Kenneth R. Hooper City Manager Michele L. Goins, CPA Finance Director W W M M W Financial Section This Section is composed of the following parts: IN Report of Independent Auditors General Purpose Financial Statements (Including Notes to Financial Statements) Combining, Individual Fund and Account Group Financial Statements and Schedules r 0101- 0139452 r This page intentionally left blank. ' 1 0101- 0139452 r 0101- 0139452 Report of Independent Auditors This page intentionally left blank. 0101 - 0139452 =i ERNST & YOUNG 1 ■ Ernst & Young ur Suite 1700 390 North Orange Avenue Orlando, Florida 32801 -1671 Report of Independent Auditors The Honorable City Mayor, City Council, and City Manager City of Edgewater, Florida ■ Phone: (407) 872 -6600 www.ey.com We have audited the accompanying general purpose financial statements of the City of Edgewater, Florida (the City) as of and for the year ended September 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial E statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. L The schedule of pension funding progress on page 59 is supplementary information required by the Government Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the method of measurement and presentation of the supplementary information. However, we did not audit and do not express an opinion on such information. L In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Edgewater, Florida as of September 30, 2000 and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States. I In accordance with Government Auditing Standards, we have also issued our report dated February 16, 2001 on our consideration of the City of Edgewater, Florida's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. E 0101 - 0139452 Ernst & Young rrP is a member of Ernst & Young International, Ltd. 15 W Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group financial statements, and related schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such ri information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in ' relation to the general purpose financial statements taken as a whole. The statistical section has not been subjected to the procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion on it. ' UP I February 16, 2001 ' 1 L� L �I 16 0101 -0139452 1 t L t • L 0101. 0139452 General Purpose Financial Statements (Combined Statements — Overview) The diverse nature of a governmental operation and the necessity of complying with legal provisions require accounting systems unlike those commonly used by commercial enterprises. Rather than establishing a single unified set of accounts for recording and summarizing all financial transactions, the accounts of a governmental unit are organized on the basis of funds or account groups. The general purpose financial statements were prepared to allow the user of the financial report to obtain an overview and broad perspective of the City's financial position ahead of the comparable data on a detailed basis by individual funds. City of Edgewater, Florida Combined Balance Sheet All Fund Types and Account Groups September 30, 2000 See accompanying notes 18 moims� Governmental Fund Types Proprietary Fiduciary Debt Fund Tvpe Fund Type General Service Enterprise Trust Assets Pooled cash and cash equivalents $ 2,131,423 $ 342,838 $ 3,925,267 $ - Investments - - - 12,242,761 Receivables: Taxes 90,534 - _ - Accounts 46,393 - 479,126 - Unbilled accounts - - 234,606 - Accrued interest - - - 25 Special assessments — current 13,490 - _ - Due from other governments 2,576 - 6,750 - - Due from other funds - - 2,979 _ Inventory 25,206 - 54,022 - Prepaids 17,257 - 3,608 - Restricted assets: Customer deposits: Cash and cash equivalents - - 448,000 - Sinking fund: Cash and cash equivalents - - 1,057,412 - Accrued interest receivable - - - _ Renewal and replacement fund: Cash and cash equivalents - - 1,682,638 - Development fund: Cash and cash equivalents - - 2,403,650 - Construction fund: Special assessments -- current - 315,920 - _ Special assessments — noncurrent - 3,932,910 - _ Wastewater special assessment fund: Cash and cash equivalents - - 1,329,542 - Special assessments— current - - 669,282 - Special assessments — noncurrent - - 11,236,408 - Accrued interest receivable - - 530,850 - Advances to other funds - - _ _ Land - - 676,827 - Buildings - - 20,023,941 - Improvements - - 32,668,987 - Machinery and equipment - - 1,961,483 - Accumulated depreciation - - (12,081,224) - Construction in progress - - 937,154 - Unamortized debt issuance costs - - - 436,354 - Amount available for debt service - - _ _ Amount to be provided for payment of long -term debt - _ _ - Total assets $ 2,326,879 $ 4, 591,668 $ 68,687,662 $ 12,242,786 See accompanying notes 18 moims� w Page I of 2 Ir do Account Groups - 448,000 415,786 General General Totals - 1,057,412 Fixed Long -Term (Memorandum Only) - Assets Debt 2000 1999 - - 1,682,638 1,515,956 S - S - S 6,399,528 S 9,219,209 - - 12,242,761 10,688,009 - - - 90,534 67,130 - - 525,519 556,886 297,401 - - 234,606 232,396 - 3,932,910 - - 25 1,817 - - - 13,490 16,149 - - 9,326 89,013 638,209 - - - 2,979 197,155 - 11,236,408 - - 79,228 89,810 - - - 20,865 9,496 r w moimxm 19 r - - 448,000 415,786 - - 1,057,412 1,034,571 - - - 117 - - 1,682,638 1,515,956 - - 2,403,650 1,956,527 - - 315,920 297,401 - - 3,932,910 4,261,392 - - 1,329,542 1,778,208 - - 669,282 638,209 - - 11,236,408 11,952,297 - - 530,850 561,325 - - - 80,679 1,415,499 - 2,092,326 2,092,326 2,354,501 - 22,378,442 22,375,356 �1 14,081,344 - 46,750,331 46,284,981 3,204,494 - 5,165,977 4,536,182 - - (12,081,224) (10,546,997) 2,041,267 - 2,978,421 321,898 ft - - 436,354 484,359 - 342,838 342,838 286,219 - 7,512,007 7,512,007 8,013,347 ifr S 23,097,105 S 7,854,845 S 118,800,945 S 119,507,209 r w moimxm 19 r City of Edgewater, Florida Combined Balance Sheet All Fund Types and Account Groups September 30, 2000 See accompanying notes. 20 om1miwv Governmental Fund Types Proprietary Fiduciary Debt Fund Type Fund Type General Service Enterprise Trust Liabilities, equity and other credits Liabilities: Accounts payable $ 343,321 $ – S 450,353 S 1,035 Accrued liabilities 37,422 – 15,667 – Claims payable _ _ Due to other funds 2,979 Deferred revenue 135,662 4,248,830 Refundable deposits 2,335 – _ _ Notes payable -- current – – 4,017 – Payable from restricted assets: Customer deposits – – 445,665 – Accrued interest payable – – 467,599 – Bonds payable— current – – 225,709 – Revenue bonds payable — current – – 345,000 – State revolving loan payable —current – – 1,104,326 – Advances from other funds _ Accumulated employee benefits – – 288,799 – Notes payable — long -term – – 13,314 – Bonds payable— long -term – – 2,666,423 – Revenue bonds payable— net — long -term – – 12,535,734 – State revolving loan payable— long -term – – 18,136,786 – Totalliabilities 521,719 4,248,830 36,699,392 1,035 Fund equity and other credits: Contributed capital: Contributions from governmental agencies – – 2,122,149 – Contributions from customers – – 22,757,441 – Contributions —other – – 866,940 – Investment in general fixed assets – _ _ _ Retained earnings: Reserved – – 2,740,050 – Unreserved – – 3,501,690 – Fund balances: Reserved 510,409 342,838 – 12,241,751 Unreserved: Designated 19,346 – _ _ Undesignated 1,275,405 – – – Total fund equity and other credits 1,805,160 342,838 31,988,270 12,241,751 Total liabilities, fund equity and other credits $ 2,326,879 $ 4,591,668 $ 68,687,662 $ 12,242,786 See accompanying notes. 20 om1miwv Page 2 of 2 IN Account Groups General General Totals Fixed Long -Term (Memorandum Only) Assets Debt 2000 1999 ICI — — 2,122,149 $ — $ — $ 794,709 $ 1,124,131 — — 866,940 — — 53,089 51,203 IN — — — 86,000 — — 2,979 197,155 — — 19,346 — — 4,384,492 4,676,120 23,097,105 — 69,475,124 — — 2,335 2,275 — — 4,017 — 3,825 — — 445,665 415,792 — — 467,599 492,913 — — 225,709 214,152 — — 345,000 325,000 — — 1,104,326 1,065,175 — — — 80,679 — 768,169 1,056,968 943,310 — 91,669 104,983 129,233 — 6,995,007 9,661,430 10,405,093 — — 12,535,734 12,868,796 — — 18,136,786 19,241,113 7,854,845 49,325,821 52,321,965 — — 2,122,149 2,233,532 — — 22,757,441 22,630,294 — — 866,940 901,762 to 23,097,105 — 23,097,105 20,901,927 — — 2,740,050 2,550,644 — — 3,501,690 3,228,772 — — 13,094,998 11,308,619 — — 19,346 19,346 — — 1,275,405 3,410,348 23,097,105 — 69,475,124 67,185,244 $ 23,097,105 $ 7,854,845 $ 118,800,945 $ 119,507,209 w an Ili mo1a13W 21 w City of Edgewater, Florida Combined Statement of Revenues, Expenditures and Changes in Fund Balance All Governmental Fund Types Year ended September 30, 2000 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Special assessments: Principal Interest Miscellaneous Total revenues Expenditures: Current: General government Public safety Transportation Culture /recreation Capital outlay Debt service Miscellaneous Total operating expenditures Deficiency of revenues under expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources Excess of revenues and other financing sources (under) over expenditures and other financing uses Fund balances at beginning of year Residual Equity Transfer from Internal Service Fund Fund balances at end of year See accompanying notes. Governmental Fund Types Totals Debt (Memorandum General Service Only) $5,648,694 $ - $ 5,648,694 267,252 - 267,252 663,079 - 663,079 139,931 - 139,931 77,659 - 77,659 - 39,120 39,120 - 310,973 310,973 - 266,491 266,491 305,469 - 305,469 7,102,084 616,584 7,718,668 1,423,439 - 1,423,439 4,164,037 - 4,164,037 667,425 - 667,425 728,209 - 728,209 2,241,616 - 2,241,616 25,587 911,370 936,957 - 2,025 2,025 9,250,31 913,395 10,163,708 (2,148,229) (296,811) (2,445,040) 459,726 353,430 (354,607) - 813,156 (354,607) 105,119 353,430 458,549 (2,043,110) 56,619 (1,986,491) 3,764,075 84,195 286,219 4,050,294 - 84,195 $1,805,160 $342,838 $ 2,147,998 R ad r r ad r W .r we I � I +trl 22 0101 - 0139452 ft City of Edgewater, Florida Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual General Fund Year ended September 30, 2000 is Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures ;i Miscellaneous Total revenues Expenditures: lrr Current: General government Public safety Transportation Culture /recreation Capital outlay Debt service - principal Debt service - interest Total expenditures as Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources w Excess of revenues and other financing sources (under) over expenditures Fund balances at beginning of year Residual Equity Transfer from Internal Service Fund Fund balances at end of year 6 See accompanying notes. 0101 - 0139452 6 Variance Favorable 1999 Budget Actual (Unfavorable) Actual $5,501,023 $5,648,694 $147,671 $5,516,973 208,050 267,252 59,202 220,890 566,729 663,079 96,350 806,787 107,750 139,931 32,181 141,439 64,900 77,659 12,759 91,658 226,100 305,469 79,369 271,079 6,674,552 7,102,084 427,532 7,048,826 1,440,005 1,423,439 16,566 1,194,392 4,014,562 4,164,037 (149,475) 3,283,992 638,323 667,425 (29,102) 301,660 745,107 728,209 16,898 616,686 2,100,517 2,241,616 (141,099) 1,375,499 125,148 25,587 99,561 19,250 - - - 13,029 9,063,662 9,250,313 (186,651) 6,804,508 (2,389,110) (2,148,229) 240,881 244,318 459,726 459,726 - 388,582 (360,229) (354,607) 5,622 (360,298) 99,497 105,119 5,622 28,284 (2,289,613) (2,043,110) 246,503 272,602 3,764,075 3,764,075 - 3,491,473 - 84,195 84,195 - $1,474,462 $1,805,160 $330,698 $3,764,075 23 .o City of Edgewater, Florida Combined Statement of Revenues, Expenses and Changes in Retained Earnings All Proprietary Fund Types .o W Year ended September 30, 2000 Onerntino revennec- Charges for services Miscellaneous Total operating revenues Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 2000 1999 $6,298,423 54,031 $ - $6,298,423 63,705 117,736 $6,125,074 89,808 6,352,454 63,705 6,416,159 6,214,882 i an 1t Operating expenses: Personal services Contractual services Operating supplies and expenses Repairs and maintenance Claims and judgments Total operating expenses 2,461,674 - 2,461,674 2,397,715 650,390 90,283 740,673 825,037 794,878 81 794,959 658,951 304,000 - 304,000 316,839 - - - 13,570 4,210,942 90,364 4,301,306 4,212,112 Operating income (loss) before depreciation 2,141,512 (26,659) 2,114,853 2,002,770 Less depreciation expense (1,524,859) - (1,524 859 (1504,921) Operating income (loss) 616,653 (26,659) 589,994 497,849 Nonoverating revenues (expenses): Interest revenue State grants Interest/amortization expense Loss on disposal of fixed assets Total nonoperating revenues (expenses) Income (loss) before operating transfers Operating transfers: Operating transfers in Operating transfers out Net loss Add back depreciation expense related to contributed assets Net increase (decrease) in retained earnings Retained earnings at beginning of year Residual equity transfer to general fund Retained earnings at end of year See accompanying notes. 1,330,058 12,138 1,342,196 1,165,509 6,750 - 6,750 7,684 (1,688,775) - (1,688,775) (1,758,327) - - - (1,635) (351,967) 12,138 (339,829) (586,769) 264,686 (14,521) 250,165 (88,920) 1,177 - 1,177 6,869 (459,726) - (459,726) (388,582) (193,863) (14,521) (208,384) (470,633) 754,903 - 754,903 754,754 561,040 (14,521) 546,519 284,121 5,680,700 98,716 5,779,416 5,495,295 - (84,195) (84,195) - $6,241,740 $ - $6,241,740 $5,779,416 it W W J 24 0101- 0139452 e iJ City of Edgewater, Florida Combined Statement of Cash Flows All Proprietary Fund Types Year ended September 30, 2000 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees for services Net cash provided by (used in) operating activities Cash flows provided by (used in) capital and related financing activities: Acquisition and construction of capital assets Interest paid Contributions for acquiring assets Principal payments: Revenue bonds State revolving loan Capital leases Note payable Total cash flows used in capital and related financing activities Page 1 of 2 Totals Internal (Memorandum Only) Enterprise Service 2000 1999 $ 5,998,775 $ — $ 5,998,775 $ 6,127,131 (1,856,305) (107,545) (1,963,850) (1,770,920) (1,875,010) — (1,875,010) (2,278 267) 2,267,460 (107,545) 2,159,915 2,077,944 (674,399) — (674,399) (406,998) (1,628,756) — (1,628,756) (1,612,096) 546,017 — 546,017 1,078,978 (539,152) — (539,152) (398,166) (1,065,175) — (1,065,175) (1,027,413) (9,671) (3,825) — (3,825) (3,640) (3,365,290) — (3,365,290) (2,379,006) Cash flows provided by (used in) noncapital 1,330,157 12,144 1,342,301 and related financing activities: Total cash flows provided by investing Operating transfers to other funds (459,726) — (459,726) (388,582) Operating transfers from other funds 1,177 — 1,177 6,869 Proceeds from state recycling grant 6,750 - — 6,750 1,217 Advance made to General Fund — — — (965) Repayment of advance from General Fund — 80,679 80,679 17,462 Residual equity transfer out — (84,195) (84,195) — Total cash flows used in noncapital and related 10,639,128 Cash and cash equivalents at end of year $10,846,509 financing activities (451,799) (3,516) (455,315) (363,999) Cash flows provided by investing activities: Investment income 1,330,157 12,144 1,342,301 1,190,831 Total cash flows provided by investing activities 1,330,157 12,144 1,342,301 1,190,831 Net (decrease) increase in cash and cash equivalents (219,472) (98,917) (318,389) 525,770 Cash and cash equivalents at beginning of year 11,065,981 98,917 11,164,898 10,639,128 Cash and cash equivalents at end of year $10,846,509 $ — $10,846,509 $11,164,898 See accompanying notes. ' 0101- 0139452 25 City of Edgewater, Florida Combined Statement of Cash Flows All Proprietary Fund Types Year ended September 30, 2000 Totals Internal (Memorandum Only) Enterprise Service 2000 1999 Classified as Unrestricted assets: Cash, cash equivalents and equity in pooled cash $ 3,925,267 $ — $ 3,925,267 $ 4,463,850 Restricted assets: Cash, cash equivalents and equity in pooled cash Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) Depreciation Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Decrease (increase) in accounts receivable Decrease in inventory (Increase) decrease in unbilled accounts receivable Decrease (increase) in prepaids Increase in customer deposits Decrease (increase) in accounts payable Decrease in claims payable Decrease in interfund receivables Decrease in accrued interest receivable Increase (decrease) in accrued liabilities Increase in accrued employee benefits Net cash provided by (used in) operating activities See accompanying notes. Page 2 of 2 ' 6,921,242 — 6,921,242 6,701,048 $10,846,509 $ — $10,846,509 $11,164,898 $ 616,653 $ (26,659) $ 589,994 $ 497,849 1,524,859 — 1,524,859 1,504,921 55,243 — 55,243 (113,860) — — — 1 (2,210) — (2,210) 6,282 (1,007) — (1,007) 5,706 32,214 — 32,214 36,675 35,672 (14,149) 21,523 162,505 — (86,000) (86,000) - - 17,462 17,462 - - 1,801 1,801 — (14,163) — (14,163) (150,677) 20,199 — 20,199 128,542 $ 2,267,460 $(107,545) $ 2,159,915 $ 2,077,944 u II L �' I 26 0101 - 0139452 1 ' City of Edgewater, Florida Combined Statement of Plan Net Assets All Pension Trust Funds September 30, 2000 lrr Liabilities Accounts payable 1,035 Total liabilities 1,035 Net assets Net assets held in trust for pension benefits $12,241,751 See accompanying notes. 0101- 0139452 27 Assets Investments: Debt mutual funds $ 4,482,970 Equity mutual funds Other 5,572,328 mutual funds 2,187,463 Total investments 12,242,761 Interest and dividends receivable 25 Total assets 12,242,786 Liabilities Accounts payable 1,035 Total liabilities 1,035 Net assets Net assets held in trust for pension benefits $12,241,751 See accompanying notes. 0101- 0139452 27 City of Edgewater, Florida Combined Statement of Changes in Plan Net Assets All Pension Trust Funds For the fiscal year ended September 30, 2000 Additions: Contributions: Employer $ 808,525 Employees 117,585 State of Florida 13,141 Total contributions 939,251 Investment income: Investment and dividend income 778,257 Net change in fair value of plan investments 22,265 800,522 Investment expenses (15,221) Net investment income 785,301 Total additions 1,724,552 Deductions: Benefits payments (140,586) Income before administrative expenses 1,583,966 Administrative expenses (30,234) Net increase 1,553,732 Net assets held in trust for pension benefits: Beginning of year 10,688,019 End of year $12,241,751 See accompanying notes. 28 0101. 0139452 City of Edgewater, Florida Notes to Financial Statements September 30, 2000 Significant Accounting Policies The City of Edgewater, Florida is a political subdivision of the State of Florida located in Volusia County. The Town of Edgewater was originally incorporated under the general law on �. October 20, 1924, "Municipal Charters" Volume 4, page 117. The town became the City of Edgewater when its initial charter was adopted by Chapter 275.32 Special Acts of 1951. The legislative branch of the City is composed of a Mayor and four (4) member elected Council. The +r City Council is governed by the City Charter and by state and local laws and regulations. The City Council is responsible for the establishment and adoption of policy. The execution of such policy is the responsibility of the Council appointed City Manager. The accounting policies of the City of Edgewater conform to generally accepted accounting principles as applicable to governments. The following is a summary of the significant policies. A. Reporting Entity: im The accompanying general purpose financial statements present the financial position, results of operations and cash flows of the applicable fund types and account groups governed by the City Council of the City of Edgewater, Florida in accordance with im governmental accounting standards. There are no potential component units which would require inclusion in the City's general r1 purpose financial statements under the requirements of Government Accounting Standards Board Statement No. 14. W B. Basis of Presentation: The City maintains its accounting records in accordance with the principles and policies applicable to governmental units set forth by the Governmental Accounting Standards +• Board (GASB) as well as generally accepted accounting principles (GAAP) as promulgated by the Financial Accounting Standards Board (FASB). For its proprietary funds, the City has elected not to apply FASB statements and interpretations issued after November 30, 1989. C. Fund Accounting: The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund �` equity, revenues and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they In 0101 - 0139452 29 IN City of Edgewater, Florida 1 Notes to Financial Statements (continued) I 1. Significant Accounting Policies (continued) C. Fund Accounting (continued): , are to be spent and the means by which spending activities are controlled. The purposes of the City's various funds and account groups are as follows: Governmental Fund Types: ' General Fund —The General Fund is the general operating fund of the City. It is used to account for all financial resources, except those required to be accounted for in another ' fund. Debt Service Fund —The Debt Service Fund is used to account for the accumulation of ' resources for, and the payment of, general long -term debt principal, interest, and related costs. Proprietary Fund Types: Enterprise Funds — Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises —where the , intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or , recovered primarily through user charges. Internal Service Funds — Internal Service Funds are used to account for the financing of ' goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost - reimbursement basis. The City discontinued the use of its internal service fund during the year ended September 30, , 2000. Fiduciary Fund Type: , Trust Funds — Pension Trust Funds are used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/or other funds. ' Account Groups: General Fixed Assets —The General Fixed Assets Account Group is used to account for ' all fixed assets of the City, except fixed assets of proprietary funds. General Long -Term Debt —The General Long -Term Debt Account Group is used to account for all the outstanding principal balances of any general and special obligation bonds or notes of the City, except long -term debt of proprietary funds. 30 0101-0139452 1 In a City of Edgewater, Florida Notes to Financial Statements (continued) In to 1. Significant Accounting Policies (continued) to D. Measurement Focus: Governmental Fund Type —The General and Debt Service Funds are accounted for on a "spending" or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on the balance sheet. Accordingly, the reported unreserved undesignated fund balance (net current assets) is considered to be the measure of available, spendable or appropriable resources. Governmental Fund Type operating rrn statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. rr Proprietary Fund Types — Enterprise and Internal Service Funds are accounted for on an "income determination" measurement focus. Accordingly, all assets and liabilities are included on their balance sheets, and the reported fund equity (total reported assets, less �r total reported liabilities) provides an indication of the economic net worth of the fund. Operating statements for Proprietary Fund Types (on an income determination measurement focus) report increases (revenues) and decreases (expenses) in total economic net worth. Fiduciary Fund Type— Pension Trust Funds are accounted for in the same manner as in Proprietary Fund Types since capital maintenance is critical. Account Groups —The General Long -Term Debt and General Fixed Assets Account a' Groups are concerned only_with the measurement of financial position. They are not involved with the measurement of results of operations. E. Basis of Accounting: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the general purpose financial statements. Basis of accounting No relates to the timing of the measurements made, regardless of the measurement focus applied. The General and Debt Service Funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. Revenues which are susceptible to accrual include property taxes, franchise taxes, charges for services and investment earnings. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long -term debt which are recognized when due and inventories which are recognized when consumed. 5 0101 -0139452 31 1 City of Edgewater, Florida Notes to Financial Statements (continued) 1. Significant Accounting Policies (continued) E. Basis of Accounting (continued): All Proprietary and Pension Trust Funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned and their expenses are recognized when they are incurred. F. Budgets and Budgetary Accounting: The City follows these procedures in establishing the budgetary data reflected in the financial statements: (1) Prior to the end of the fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. (2) Budget workshops are scheduled by the City Manager as needed. (3) The general summary of the budget and notice of public hearing is published in the local newspaper. (4) Public hearings are conducted to obtain taxpayer comments. (5) Prior to October 1, the budgets are legally enacted through passage of a resolution. (6) The City Manager is authorized to transfer budgeted amounts_ within and between divisions and departments; however, any revisions that alter the total appropriations of any fund must be approved by the City Council. (7) The level of classification detail at which expenditures may not legally exceed appropriations is the fund level. (8) Appropriations lapse at the close of the fiscal year to the extent they have not been expended. (9) Budgets are adopted for the General Fund on a basis consistent with generally accepted accounting principles. Budgets are also adopted for the enterprise and internal service funds; however, these data are not presented under generally accepted accounting principles. 32 0101 -0139452 1 17 r I F 17 IN City of Edgewater, Florida Notes to Financial Statements (continued) M 1. Significant Accounting Policies (continued) F. Budgets and Budgetary Accounting (continued): (10) The City Council, by Ordinance or Resolution, may make supplemental appropriations in excess of those originally estimated for the year up to the amount of available revenues. There were no material supplemental appropriations made in the current year. ft G. Receivables: Unbilled Utility Accounts Receivable — Water, sewer and refuse operating revenues are generally recognized on the basis of cycle billings rendered monthly. The unbilled portion an was accrued at year end by calculating the cycle billing the City sent to its customers and prorating the number of days applicable to the current year. to Property Taxes —Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the IN County Property Appraiser and County Tax Collector. The laws of the state regulating tax assessment are also designed to assure a consistent property valuation method state -wide. State Statutes permit municipalities to levy property taxes at a rate of up to 10 mills. The IN current millage rate assessed by the City is 5.950. The property tax calendar is as follows: Valuation Date January 1, 1999 to Property Appraiser prepares the assessment roll with values as of January 1, 1999, submits this preliminary roll for approval by the State and notifies each taxing authority of their respective valuations. July 1, 1999 City Council holds two required public hearings and adopts a budget and ad valorem tax millage rate(s) for the coming fiscal year. September, 1999 L L Property Appraiser certifies the assessment roll and all real and tangible personal property taxes are due and payable (levy date). November 1, 1999 0101- 0139452 33 City of Edgewater, Florida Notes to Financial Statements (continued) 1. Significant Accounting Policies (continued) G. Receivables (continued): A Notice of Taxes is mailed to each property owner on the assessment roll. Taxes may be paid November 1999 through March 2000, with the following applicable discounts: Month Discount Percent November 4% November 1, 1999 December 3 Through January 2 March 31, 2000 February 1 March 0 All unpaid taxes on real and tangible personal property become delinquent. April 1, 2000 A list of unpaid tangible personal property taxes and a list of unpaid real property taxes is advertised. April and May, 2000 Tax certificates are sold on all real estate parcels with unpaid real property taxes (lien date). June 1, 2000 A court order is obtained authorizing the seizure and sale of personal property if the taxpayer fails to pay the delinquent personal property taxes. June, 2000 In accordance with the modified accrual basis of accounting, property taxes that are measurable, but not available, are reported as taxes receivable and deferred revenue. The deferred revenues will be recognized in the fiscal year in which they become available. H. Investments: Investments consist of amounts placed with the State Board of Administration for participation in the Local Government Surplus Funds Trust Fund investment pool (a 2a -7 like external investment pool), created by Section 218.405, Florida Statutes, and those made locally. A 2a -7 like pool is not registered with the SEC as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's Rule 2a -7 of the Investment Company Act of 1940, which comprises the rules governing money market funds. The Local Government Surplus Funds Trust Fund is administered by the State Board of Administration, under the regulatory oversight of the State of Florida, Chapter 19 -7 of the Florida Administrative Code. The City's investment in �1 J I 34 0101 -0139452 IN City of Edgewater, Florida Notes to Financial Statements (continued) W 1. Significant Accounting Policies (continued) H. Investments (continued): this external investment pool is reported at amortized cost, and the City's investment position in the Local Government Surplus Funds Trust Fund is the same as the value of the pool shares. Investments made locally include investments in equity and debt mutual funds, which are reported at fair value based on quoted market prices. to I. Inventories: Inventories are stated at cost on the first -in, first -out method of accounting. The effect of this method is to flow costs through operations in the order in which they are purchased and on to assign a balance sheet cost more nearly at current replacement values. Inventory in the General Fund is recorded as an expenditure at the time inventory is used (consumption method). J. Fixed Assets: Fixed assets purchased in the Governmental Fund Type are recorded as expenditures at the time of purchase. Assets are capitalized at cost in the General Fixed Assets Account Group. Donated fixed assets are recorded in the general fixed assets at fair market value at the time IN received. No depreciation has been provided on general fixed assets, and the City does not capitalize infrastructure general fixed assets. The fixed assets of the enterprise funds are capitalized at cost when purchased. Donated fixed assets are capitalized at their fair market value at the date received and classified as contributions. Interest is capitalized on enterprise fund assets acquired with tax - exempt debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. Depreciation is provided using the straight -line method over the assets' estimated useful lives. Depreciation expense on assets from contributed capital is added back to retained earnings and deducted from contributed ' capital. The estimated useful lives of the various classes of depreciable assets are as follows: Assets Years Water system 25 -65 years Sewer system 6 -65 years Refuse collection facilities 10 years Machinery and equipment 3 -25 years I Stormwater system 6 -65 years 0101- 0139452 35 City of Edgewater, Florida Notes to Financial Statements (continued) 1. Significant Accounting Policies (continued) K. Unamortized Debt Issuance Costs: Issuance costs include expenses associated with issuance of the revenue bonds and expenses associated with the issuance of state revolving loans. Issuance costs are amortized over the life of the debt using the effective interest method. L. Compensated Absences: The City records compensated absences in the General Fund as an expenditure for the amount accrued during the year that would normally be liquidated with expendable available financial resources. The remainder of the liability is reported in the General Long - Term Debt Account Group. Proprietary Fund Types accrue compensated absences in the period they are earned. M. Reserves: Reserves indicate that portion of fund balance /retained earnings that is not available for appropriation or which is legally segregated for a specific future use. The description of each reserve indicates the purpose for which it was intended. N. Reserve for Encumbrances: Encumbrances outstanding at year end represent the estimated amount of the expenditures ultimately to result if unperformed contracts in process at year end are completed. Such encumbrances do not constitute expenditures or liabilities, but rather reservations of fund balance for subsequent years' appropriation. O. Contributed Capital: Proprietary Fund contributed capital represents outside contributions from other funds, governmental entities, developers and customers. The contributions were collected to establish such funds or to finance fixed asset additions. P. Long -Term Debt: Debt recorded in the General Long -Term Debt Account Group is paid from Governmental Fund resources. Debt recorded in the Enterprise Fund is paid from Enterprise Fund resources. 36 0101 -0139452 1 1 W 60 City of Edgewater, Florida Notes to Financial Statements (continued) C -- W 1. Significant Accounting Policies (continued) Q. Combined Statements "Memorandum Only" Total Columns: Total columns on the Combined Statements —All Fund Types and Account Groups are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of these data. r. R. Reclassifications: Certain September 30, 1999 account balances have been reclassified in this report to r conform with the financial statement presentation used in 2000. S. Cash and Cash Equivalents: The City classifies all highly liquid investments with an original maturity of ninety days or less as cash and cash equivalents. W 2. Deposits and Investments The City maintains a cash and investment pool that is available for use by all funds, except the fiduciary fund types. Each fund type's portion of this pool is included on the combined balance sheet in "Pooled Cash and Cash Equivalents." In addition, investments are separately held by several of the City's funds. The deposits and investments of the pension trust funds are held separately from those of other City funds. A. Deposits: Florida Statutes require depositories of public funds to provide collateral each month at 1�r least equal to fifty percent of the average daily balance of all public deposits in excess of deposit insurance. The collateral is held by the State Treasurer or other custodian with full legal rights maintained by the Treasurer to transfer ownership. Any loss not covered by the + pledged securities and deposit insurance would be assessed by the State Treasurer and paid by the other public depositories. At September 30, 2000, the carrying amount of the City's deposits and petty cash was $222,135 and the bank balance was $792,204. Since the City's banks are on the list of state qualified public depositories, the entire amount of deposits is considered fully collateralized or insured. The City classifies investments in the State Board of Administration account as cash and cash equivalents due to the liquid nature of the account. 0101- 0139452 37 City of Edgewater, Florida ' Notes to Financial Statements (continued) 2. Deposits and Investments (continued) ' B. Investments: ' The City's investment procedures are regulated by State Statute. Acceptable investment instruments participated in during the year include repurchase agreements and the local government investment trust fund of the State Board of Administration. , Investments of the Municipal Police Officers' Retirement Trust and General Employees' Pension were managed by Principal Mutual Life Insurance Company. Investments consist ' principally of debt and equity mutual funds, all of which are authorized by the City. The Firefighters' Pension Fund's investments are governed by an investment policy adopted by ' the Fund's Board of Trustees. The basic allowable investment instruments include obligations of, or obligations the principal and interest of which are guaranteed by, the U.S. Government; time deposits or savings accounts of a national bank, a state bank insured by ' the Federal Deposit Insurance Corporation; bonds issued by the State of Israel; and bonds, stocks or other evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or 1 the District of Columbia. The following schedule categorizes the level of risk assumed by the City relating to I investments held. Category I includes investments insured or registered or for which the securities are held I by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are I held by the counterparty's trust department or agent in the City's name. F� 38 0101- 0139452 ■r W City of Edgewater, Florida Notes to Financial Statements (continued) W 1r 2. Deposits and Investments (continued) r B. Investments (continued): Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent, but not in the City's name. r Category Total 1 2 3 (fair value) Repurchase agreements $ — $1,057,412 $ — $ 1,057,412 Investments not subject to categorization: Deposits with State Board of Administration 12,041,223 Investments with Principal Mutual Life Insurance Corp. (mutual funds) 11,283,527 Investments with SunTrust Bank of Central Florida, N.A. (mutual funds) 959,234 $25,341,396 r Reconciliation of deposits and investments to amounts reported on the combined balance sheet: r Total deposits and investments: Deposits $ 222,135 Investments 25,341,396 Total - $25,563,531 Combined balance sheet classification: Pooled cash and cash equivalents $ 6,399,528 Restricted cash and cash equivalents 6,921,242 Investments 12,242,761 Total $25,563,531 No 0101- 0139452 39 City of Edgewater, Florida Notes to Financial Statements (continued) 3. Accounts Receivable Accounts receivable and the related allowance for doubtful accounts at September 30, 2000 are as follows: Receivables: Interest Taxes Accounts Special assessments Gross receivables Less allowance for uncollectibles Net total receivables 4. Changes in General Fixed Assets A summary of changes in general fixed assets follows: Land Buildings Improvements other than buildings Equipment Construction in progress Total 5. Capitalization of Interest Balance Balance October 1 September 30 1999 Additions Deletions 2000 $ 1,415,499 $ — $ — $ 1,415,499 2,351,415 3,086 — 2,354,501 13,980,790 104,305 Trust and 2,884,775 General Enterprise Agency _ Total — 2,041,267 $20,901,927 $2,269,690 $74,512 $23,097,105 $ — $ 530,850 $25 $ 530,875 90,534 — — 90,534 46,393 793,403 — 839,796 13,490 11,905,690 — 11,919,180 150,417 13,229,943 25 13,380,385 — (79,671) — (79,671) $150,417 $13,150,272 $25 $13,300,714 4. Changes in General Fixed Assets A summary of changes in general fixed assets follows: Land Buildings Improvements other than buildings Equipment Construction in progress Total 5. Capitalization of Interest Balance Balance October 1 September 30 1999 Additions Deletions 2000 $ 1,415,499 $ — $ — $ 1,415,499 2,351,415 3,086 — 2,354,501 13,980,790 104,305 3,751 14,081,344 2,884,775 390,480 70,761 3,204,494 269,448 1,771,819 — 2,041,267 $20,901,927 $2,269,690 $74,512 $23,097,105 The City did not capitalize any interest costs during the year. Interest costs incurred and charged to expenditure /expense amounted to $2,036,370 for 2000. 40 0101 - 0139452 or to City of Edgewater, Florida Notes to Financial Statements (continued) 6. Changes in General Long -Term Debt Balance General Balance October 1 Stormwater September 30 1999 Additions Deletions 2000 Refuse Management Compensated absences $ 674,711 $93,458 $ - $ 768,169 Capital Improvement Bonds, Fund Total Series 1995 A 5,326,653 - 412,910 4,913,743 Capital Improvement Bonds, Series 1995 B 2,186,308 - 105,044 2,081,264 Note payable - Volusia County 111,894 - 20,225 91,669 $8,299,566 $93,458 $538,179 $7,854,845 896 729 30,406 7. Capital Leases and Notes Payable 25,570 3,211 r The City has a 5% note payable to finance the purchase of additional equipment for the countywide 800 MHz Radio System. Payments are due semi - annually until 2004 and will be made from operating revenues. 3,211 896 The annual requirements to amortize notes payable as of September 30, 2000 are as follows: ft F1 0101- 0139452 41 IN General Stormwater Year ending Long -Term Water and Refuse Management September 30 Debt Sewer Fund Fund Fund Total 2001 $ 25,570 $ 3,211 $ 896 $ 729 $ 30,406 2002 25,570 3,211 896 729 30,406 2003 25,570 3,211 896 729 30,406 2004 25,570 3,211 896 729 30,406 102,280 12,844 3,584 2,916 121,624 Less amount representing interest (10,611) (1,337) (370) (306) (12,624) Total $ 91,669 $11,507 $3,214 $2,610 $109,000 0101- 0139452 41 IN City of Edgewater, Florida Notes to Financial Statements (continued) 8. Special Assessment and Stormwater Revenue Bonds The Special Assessment and Stormwater Revenue Bonds resolutions provide for: (1) Establishment and maintenance of a certain fund and accounts: (a) Special Assessment Improvement Bonds Sinking Fund including; (1) 1995 Debt service account; (2) 1995 Bond amortization account; (3) 1995 Bonds reserve account; (4) 1995 Bonds redemption account. (2) Restrictions on the use of cash from operations in order of priority: (a) All Special Assessments shall be applied and deposited only into the 1995 subaccounts listed above. Moneys and Authorized Investments on deposit at any time in the 1995 subaccounts may be used only for the payment of Debt Service on, or redemption of the price of, the 1995 Bonds. (b) All Stormwater Fees shall be deposited into the Stormwater Utility Management Fund (the "Utility Fund "). After the provision for the payment of operating expenses of the City's Stormwater Utility, the City shall transfer to the 1995 Bonds subaccount Stormwater Utility Fees until the aggregate amount transferred is equal to the amount certified by the City's Director of Finance as the portion of that fiscal year's debt service necessary to be paid out of the Stormwater Utility Fees. (c) All Non - Advalorem Revenues (except Franchise Taxes) shall make up for any deficiency in meeting the debt service requirement after all of the aforementioned pledged revenues have been exhausted. (3) Early redemption: The City may prepay up to 10% without penalty. Should the prepayments exceed the amount allowed by the bank, the prepayments are subject to a penalty using a predetermined formula based on certain interest factors. 42 0101 -0139452 1 a , City of Edgewater, Florida Notes to Financial Statements (continued) 8. Special Assessment and Stormwater Revenue Bonds (continued) W (4) Investment Restrictions: Moneys on deposit in the funds described above may be invested and reinvested in - Authorized Investments as described in the bond resolution. The Special Assessment and Stormwater Revenue Bonds consist of the following: Series 1995A Series 1995B Interest Rates: 5.22% 5.58% Interest Dates: April 1, October 1 April 1, October 1 Final Maturity: October 1, 2010 October 1, 2010 irr Original Amount Issued: $9,234,660 $3,964,740 The 1995 Bonds are secured by the revenues pledged in order of priority; (1) assessment ow revenues, (2) Stormwater Revenues, (3) Utility Taxes, (4) All Non- Advalorem Revenues (except Franchise Taxes). Annual requirements to amortize all bonded debt outstanding as of September 30, 2000 are as follows: 0101 - 0139452 rr 43 General Long -Term Stormwater Bond year ended October 1 Debt Fund Total 2001 $ 911,370 $ 376,813 $ 1,288,183 10 2002 911,370 376,813 1,288,183 2003 911,370 376,813 1,288,183 2004 911,370 376,813 1,288,183 aft 2005 911,370 376,813 1,288,183 2006 -2010 4,556,851 1,884,064 6,440,915 9,113,701 3,768,129 12,881,830 +rr Less interest (2,118,694) (875,997) (2,994,691) Net $6,995,007 $2,892,132 $ 9,887,139 0101 - 0139452 rr 43 City of Edgewater, Florida Notes to Financial Statements (continued) 9. Water and Sewer Revenue Bonds The Water and Sewer Revenue Bonds resolutions provide for: (1) Establishment and maintenance of various funds and accounts– (a) Construction Fund records the cost of the project financed by the bonds; (b) Revenue Fund records all income or earnings derived from the system; (c) Operation and Maintenance Fund records the cost of operation and maintenance of the system; (d) Sinking Fund records the debt service requirements which include principal, interest and bond amortization installments; (e) Renewal and Replacement Fund records the costs of extensions, enlargements, or additions to, or replacements of, capital assets or emergency repairs thereto; and (f) Rate Stabilization Fund records transfers to and from the Revenue Fund as budgeted by the City Council for purposes of rate stabilization. (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 (1/6) of the interest coming due on the next semi - annual interest payment date and one - twelfth (1/12) of the principal coming due on the next annual principal payment date or one - twelfth (1/12) 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 requirement; 44 0101. 0139452 im „„ City of Edgewater, Florida Notes to Financial Statements (continued) ft 9. Water and Sewer Revenue Bonds (continued) (d) Deposits to the Renewal and Replacement Fund are required each month in an amount equal to one - twelfth (1/12) of five per centum (5 %) of the gross revenues of the system for the previous fiscal year; provided, however, that so r„ 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; w. (e) Deposits will next be made into the Rate Stabilization Fund for the amount budgeted for the then current period; and (f) Thereafter for any lawful purposes. No (3) Early redemption— The bond resolution provides for early redemption of outstanding bonds at call rates varying from 100% to 102% of the instruments' face value, dependent upon the call date. U (4) Investment restrictions— (a) Funds are required to be continuously secured in the same manner as the state and municipal deposits of funds are required to be secured by the Laws of the State of Florida; and (b) Moneys on deposit in the funds described above may be invested and reinvested in Authorized Investments as described in the bond resolution. The Revenue Bonds consist of the following: Interest Rates: Interest Dates: Final Maturity: Original Amount Issued: Series 1993 2.75% to 5.5% April 1, October 1 October 1, 2021 $12,460,000 Series 1991 5.4% to 7.0% April 1, October 1 October 1, 2021 $13,580,000 as 0101.0139452 C ft City of Edgewater, Florida Notes to Financial Statements (continued) 9. Water and Sewer Revenue Bonds (continued) The 1993 bonds and remaining 1991 bonds and interest thereon are secured by a first lien on and pledge of the net revenues of the water and sewer system and a first lien on and pledge of Allowable Impact Fees imposed on new users of the system. Bond transactions for the City for the year ended September 30, 2000 are as follows: Annual requirements to amortize all bonded debt outstanding as of September 30, 2000 are as follows: Bond Year ending October 1 Principal Interest Total 2001 Balance $ 722,687 Balance 2002 October 1, Bonded Indebtedness September 30, 2003 1999 Additions Deletions 2000 Water and Sewer Revenue 405,000 663,328 1,068,328 Bonds, Series 1993 $12,110,000 $ — $ 65,000 $12,045,000 Water and Sewer Revenue 2,505,000 2,834,760 5,339,760 Bonds, Series 1991 1,250,000 — 260,000 990,000 2016 -2020 $13,360,000 $ — $3 25,000 $13,035,000 Annual requirements to amortize all bonded debt outstanding as of September 30, 2000 are as follows: Bond Year ending October 1 Principal Interest Total 2001 $ 345,000 $ 722,687 $ 1,067,687 2002 365,000 701,813 1,066,813 2003 385,000 683,262 1,068,262 2004 405,000 663,328 1,068,328 2005 425,000 641,968 1,066,968 2006 -2010 2,505,000 2,834,760 5,339,760 2011 -2015 3,295,000 2,056,088 5,351,088 2016 -2020 4,300,000 1,030,100 5,330,100 2021 1,010,000 56,450 1,066,450 Totals 13,035,000 $9,390,456 $22,425,456 Less unamortized discount (154,266) Net $12,880,734 1 u 1 46 0101 - 0139452 W 10 io im Im City of Edgewater, Florida Notes to Financial Statements (continued) 9. Water and Sewer Revenue Bonds (continued) The City presently has outstanding bonds which have been refunded and are considered defeased as follows: No Water and Sewer Revenue Bonds: Series 1991 Total $12,040,000 $12,040,000 Since U.S. Government obligations are held in escrow for payment of the principal and interest, these bonds are not liabilities of the City. 10. Special Assessments Debt/State Revolving Fund Loans No The City financed a portion of its wastewater improvements for the Florida Shores capital improvement projects with two loans from the State of Florida Revolving Fund loan program. as The City received the loans on a reimbursement basis as costs were incurred. The City executed agreements with the State for these loans in the amount of $25,809,428. The State Revolving Fund (SRF) loans are secured by a junior lien on and pledge of the net revenues of the water and sewer system and the special assessment revenues levied against the benefiting property owners in Florida Shores. The assessments are payable over 20 years with interest of 6.007% until December 1, 1994 and of 5.35% thereafter. Since many taxpayers take advantage of prepayment discounts, actual interest rates paid may be less than the stated amounts. The SRF loans consist of the following: Treatment Loan Collections Loan Interest Rates: 3.16% to 3.78% 3.57% to 3.78% Payment Frequency: 20 annual payments 20 annual payments Payment Amount: $516,458 $1,294,980 Maturity Date: September 30, 2013 October 31, 2013 0101- 0139452 47 1 City of Edgewater, Florida Notes to Financial Statements (continued) 10. Special Assessments Debt /State Revolving Fund Loans (continued) Remaining annual requirements to amortize the full $25,809,428 of loans are as follows: 11. Deferred Revenues Deferred revenues at September 30, 2000 consist of the following: Delinquent taxes $ 90,534 Occupational licenses received in advance 35,241 Deferred special assessments 4,258,717 Total $4,384,492 12. Fund Equity Reserves and Designations At September 30, 2000, the retained earnings of the enterprise funds were reserved as follows: Enterprise Funds Renewal and replacement Revenue bond retirement Equipment purchases $1,466,375 1,057,412 216,263 $2,740,050 1 1 1 1 n 48 0101- 0139452 Treatment Collections Fiscal Year Ending Loan Loan - Total 2001 $ 516,458 $ 1,294,980 $ 1,811,438 2002 516,458 1,294,980 1,811,438 2003 516,458 1,294,980 1,811,438 2004 516,458 1,294,980 1,811,438 2005 516,458 1,294,980 1,811,438 2006 -2010 2,582,292 6,474,898 9,057,190 2011 -2014 1,549,374 5,179,920 6,729,294 6,713,956 18,129,718 24,843,674 Less interest (1,473,424) (4,129,138) (5,602,562) $5,240,532 $14,000,580 $19,241,112 11. Deferred Revenues Deferred revenues at September 30, 2000 consist of the following: Delinquent taxes $ 90,534 Occupational licenses received in advance 35,241 Deferred special assessments 4,258,717 Total $4,384,492 12. Fund Equity Reserves and Designations At September 30, 2000, the retained earnings of the enterprise funds were reserved as follows: Enterprise Funds Renewal and replacement Revenue bond retirement Equipment purchases $1,466,375 1,057,412 216,263 $2,740,050 1 1 1 1 n 48 0101- 0139452 im 4 City of Edgewater, Florida Notes to Financial Statements (continued) :M +r 12. Fund Equity Reserves and Designations (continued) At September 30, 2000, fund balances were reserved and designated as follows: General Debt Fund Service Trust r Reserved for: Land, parks and open spaces $151,990 $ — $ — Fire donations 2,733 — — Inventories 25,206 — — Prepaids 17,257 — — Encumbrances 267,709 — — Law enforcement trust 40,144 = — Employees' pension benefits — — 12,241,751 DARE program 5,370 — — �" Debt service — 342,838 — 510,409 342,838 12,241,751 1W Designated for: Special road resurfacing 19,346 — — $529,755 $342,838 $12,241,751 0101.0139452 49 City of Edgewater, Florida Notes to Financial Statements (continued) 13. Segment Information for Enterprise Funds The City of Edgewater maintains three Enterprise Funds which provide water, sewer, garbage and stormwater management services. Segment information for the year ended September 30, 2000 follows: 50 0101 -0139452 Water and Refuse Stormwater Sewer Collection Management Fund Fund Fund Total Operating revenues $ 4,319,519 $1,274,488 $ 758,447 $ 6,352,454 Operating expenses 2,593,720 1,223,309 393,913 4,210,942 Depreciation 1,310,366 53,797 160,696 1,524,859 Operating income (loss) 415,433 (2,618) 203,838 616,653 Operating transfers in — — 1,177 1,177 Operating transfers out (279,981) (131,200) (48,545) (459,726) Net income (loss) (130,760) (86,697) 23,693 (193,764) Operating grants — 6,750 — 6,750 Contributed capital: Increases 735,847 — — 735,847 Decreases (747,261) (3,281) (4,361) (754,905) Property, plant and equipment: Additions 1,336,075 183,598 39,903 1,559,576 Working capital 3,713,080 194,737 328,504 4,236,321 Total assets 63,410,352 768,749 4,508,561 68,687,662 Total fund equity 29,813,177 616,704 1,558,389 31,988,270 Long -term liabilities payable from operating revenues 30,879,030 56,281 2,705,745 33,641,056 50 0101 -0139452 W , City of Edgewater, Florida Notes to Financial Statements (continued) ft 14. Pension Plans— Defined Benefit in A. Plan Descriptions: 1. Police Officers' Retirement Trust Fund: The Police Officers' Retirement Trust Fund is a single employer defined benefit retirement system established pursuant to state statute. The funding methods and determination of benefits payable are provided in the various acts of the Florida Legislature, the Board of Trustees, and the City Council. The statutes provide, in r. general, that funds are to be accumulated from employee contributions, City contributions, state appropriations and income from investment of accumulated funds. Actuarial deficiencies, as determined by the state are funded by the City. The investments of the fund are administered, managed and operated by its Board of Trustees using the services of the Finance Department and Principal Mutual Life Insurance Company. Investments are reported at fair value. Full -time police officers are eligible to participate in the Police Officers' Retirement Trust Fund on the first of the month following the completion of three months of continuous service with vesting beginning upon their first day of employment with the City. Participating police employees contribute 6% of their salary to the plan. The IN City is required by statute to contribute remaining amounts necessary based upon actuarial valuations to the fund as performed in accordance with State Statute. Employees vest for full benefits after five years of service. Benefit amounts are In calculated based on the three years which give the highest average out of the last five years. Members will receive a benefit amount equal to 2% of that average multiplied by years of actual service up to October 1, 1987, and 3% of that average multiplied by i years of actual service after October 1, 1987. 2. General Employees' Pension Fund: The General Employees' Pension Fund is a single employer defined benefit retirement system and contains the assets of the General Employees' Pension Fund. The funding methods and determination of benefits payable are provided by various acts of the City Council, including subsequent amendments thereto. The code provides, in general, that funds are to be accumulated from City contributions, and income from investment of accumulated funds. Investments are reported at fair value. The General Employees' Pension Fund includes all full -time City employees, except police, firefighters, City Attorney, Public Works Director and City Manager. im 0101.0139452 51 as 14. 52 City of Edgewater, Florida Notes to Financial Statements (continued) Pension Plans— Defined Benefit (continued) A. Plan Descriptions: (continued) Employees become eligible for the plan after three months of continuous employment with vesting beginning as of the first day of employment. No employee contributions are required. The City's policy is to contribute amounts as determined by actuarial valuations. Employees vest for full benefits after five years of service. Benefit amounts are calculated based on the three consecutive years which give the highest average out of the last ten years. Members will receive a benefit amount equal to 2% of that average multiplied by years of accrual service. 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. 3. Firefighters' Pension Fund: The Firefighters' Pension Fund is a single employer defined benefit retirement system established pursuant to state statute in July 1990, with an effective date of November 1989. The funding methods and determination of benefits payable are provided in the various acts of the Florida Legislature, Firefighters' Pension Board and the City Council. The statutes provide in general, that funds are to be accumulated from employee contributions, City contributions, state appropriations and income from investment of accumulated funds. Investments are reported at fair value. Full -time firefighters are eligible to participate in the Firefighters' Pension Fund upon their first day of employment with the City. Participating fire employees contribute 6% of their salary to the plan. The City is required by statute to contribute remaining amounts necessary based upon actuarial valuations to the fund as performed in accordance with State Statute. Employees vest for full benefits after five years of service. Benefit amounts are calculated based on the five years which give the highest average out of the last ten years. Members will receive a benefit amount equal to 3% of that average multiplied by years of accrual service. r 0101 - 0139452 1 I City of Edgewater, Florida I Notes to Financial Statements (continued) 14. Pension Plans— Defined Benefit (continued) L A. Plan Descriptions: (continued) Membership data of the Pension Plans are summarized as follows: L - Police General Officers Employees Firefighters Retirees and beneficiaries currently receiving benefits and vested terminated employees 8 49 1 Active employees: L Fully vested 25 77 8 Nonvested 9 8 10 I r B. Significant Accounting Policies: City of Edgewater's financial statements for the three pension funds are prepared using the accrual basis of accounting. Employer and plan member contributions are recognized in the period that contributions are due. r Investments in the three pension funds are reported at fair value according to the is independent custodian for each plan using various third party pricing sources. Publicly available financial reports for each plan, that include detailed actuarial data, can be obtained form the City's Finance Department. In 1997 the City adopted GASB Statement No. 25 on pension accounting and reporting. L This Statement requires the disclosure of any investments in any one organization that represents 5% or more of plan net assets. All investments in the Police Officers' Retirement Trust Fund and the General Employees Pension Fund are invested in the Principal Financial 0 Group's various investment portfolios. There are no investments in any one organization in the Firefighters' Pension Fund that exceeds 5% of plan net assets. C. Contribution Requirements and Contributions Made: The Florida Legislature, City Council and each Pension Board governs the City and L employee contribution requirements for the Police Officers' Retirement Trust Fund and Firefighters' Pension Fund. The City's contribution to the General Employees' Pension Fund is an actuarially determined periodic amount that increases gradually over time so that it sufficient assets will be available to pay benefits when due. No employee contributions are required. am in 0101.0139452 53 City of Edgewater, Florida Notes to Financial Statements (continued) 14. Pension Plans— Defined Benefit (continued) C. Contribution Requirements and Contributions Made (continued): The City's contribution to the Police Officers' Retirement Trust Fund and Firefighters' Pension Fund is an actuarially determined periodic amount. The employees' contribution for these plans is 6% of their salary. Contributions provided by the State of Florida are in accordance with State statutes. Annual pension cost and contribution information for the last three fiscal years are as follows: Police Officers' Retirement Trust Fund Year Ended Annual Pension Percentage September 30 Cost Contributed 2000 $350,071 100% 1999 181,224 100 1998 172,948 100 General Emplovees' Pension Fund Year Ended Annual Pension Percentage September 30 Cost Contributed 2000 $301,864 100% 1999 268,589 100 1998 462,796 100 Firefighters' Pension Fund Year Ended Annual Pension Percentage September 30 Cost Contributed 2000 $ 99,161 100% 1999 71,331 100 1998 61,653 100 54 0101-0139452 bi to 14. Pension Plans— Defined Benefit (continued) Notes to Financial Statements (continued) to W M W IN go in ft so D. Actuarial Methods and Significant Assumptions: The valuation method used for funding the Police Officers Pension Fund is the Entry Age Normal — Frozen Initial Liability Actuarial Cost Method. This method spreads the total cost of the projected pension benefits for each employee from the date first eligible for the plan to normal retirement age. The Firefighters Pension Fund and the General Employees Retirement Plan use the Aggregate Actuarial Cost Method, which does not identify or separately amortize unfunded actuarial liabilities. Police General Officers Employees Firefighters Valuation date 10/01/99 10/01/99 10/01/99 City of Edgewater, Florida Amortization method Level Dollar - N/A N/A Closed Period Remaining amortization period 30 years N/A N/A Asset valuation method Smoothed fair value Smoothed fair value over 4 years over 4 years Market Actuarial assumptions: 60 with 5 years of 55 with 5 years of plan participation or Investment rate of service or age 52 20 years of plan after 30 years of return 8.0% 7.5% 7.5% Salary increases: is earliest. Merit A salary scale is A salary scale is 4.5% used which results used which results in a variable rate of in a variable rate of increases for merit increases for merit based on the based on the participant's age. participant's age. Inflation 3.4% 3.5% 3.0% 0101 -0139452 Retirement age 55 and 5 years of 60 with 5 years of 55 with 5 years of plan participation or accrued service or service or age 52 20 years of plan after 30 years of and 25 years of participation, accrued service service, whichever whichever is earliest is earliest. 55 City of Edgewater, Florida Notes to Financial Statements (continued) 15. Pension Plans — Defined Contribution A. Senior Executives The City adopted a defined contribution pension plan effective January 1, 1993. The plan is a money purchase plan administered for the City by the International City Managers Association. Eligible employees are certain senior City executives, presently the City Manager and City Attorney. The plan provides for an employer contribution equal to 15% of employee earnings and a voluntary employee contribution. Employees are 100% vested immediately upon participation. Employees direct the investment of funds contributed to the plan on their behalf. The City amended the defined contribution plan effective June 1, 1997. The amendment Adjusts the City's contribution requirement to 18.75% of employee earnings. There were no employer contributions made during the year. The City adopted a defined contribution pension plan effective January 1, 1998 for the then City Manager, J. Kevin Grace. The plan is a money purchase plan administered for the City by the Public Employees Benefit Services Corporation (PEBSCO). The plan provides for an employer contribution equal to 17.25% of employee earnings. Employees are 100% vested immediately upon participation. Employees direct the investment of funds contributed to the plan on their behalf. There were no employer contributions made during the year. B. 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 Principal Financial Group. 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. The plan provides for an employer contribution equal to 12% of employee earnings. Employees who elect to participate in this plan that were hired prior to October 1, 1996 will have the following contributions made: Term of Employment Prior to October 1, 1996 % Contributed for Earnings Prior to October 1. 1996 % Contributed for Earnings After October 1. 1996 3 months - 2 years 2 years - 4 years 4 years - 5 years 56 10% 11 12 ■6 we we r 12% 12 12 0101 - 0139452 J a IN City of Edgewater, Florida Notes to Financial Statements (continued) to 15. Pension Plans— Defined Contribution (continued) r „ B. General Employees (continued): Employees are 100% vested immediately upon participation. Employees direct the investment of funds contributed to the plan on their behalf. Employer contributions made �.r during the year amounted to $115,560. 16. Commitments and Contingencies A. Litigation: The City is engaged in various liability claims incidental to the conduct of its general government operations at September 30, 2000. While the ultimate outcome of the litigation cannot be determined at this time, management believes that any amounts not covered by insurance, if any, resulting from these lawsuits would not materially affect the financial position of the City. 9b B. 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 to commercial insurance. Liability limits are in excess of $39.1 million and terms associated with property insurance include total deductibles of approximately $11,000, with a 90% coinsurance provision. The City has obtained excess insurance coverage with varying retentions and limits to further limit exposure to large losses. There have been no significant reductions in insurance coverage from the prior year and settlements have not exceeded insurance coverage during the past three years. Due to the fact that the City is no longer self - insured for any of its risks, the City eliminated the self - insurance internal service fund during the year ended September 30, 2000. All go remaining assets of the fund were transferred to the general fund, and shown on the financial statements as a residual equity transfer. to In 60 0101 - 0139452 57 go City of Edgewater, Florida Notes to Financial Statements (continued) 16. Commitments and Contingencies (continued) B. Risk Management (continued): The following is a reconciliation of the changes in aggregate claims liabilities: Balance at Current Year Balance at Beginning of Claims and Changes Claims End of Fiscal Year in Estimates Payments Fiscal Year 1998 -1999 $86,000 1999 -2000 86,000 17. Contributed Capital $ — $ — $86,000 (86,000) — — During the year, contributed capital in the enterprise funds changed by the following amounts: 18. Excess of Expenditures over Appropriations For the year ended September 30, 2000, expenditures exceeded appropriations in the General fund by $186,651. This overexpenditure was funded by available fund balance. 58 0101 -0139452 Water and Refuse Stormwater Source Sewer Collection Management Totals Impact fees —water $ 527,381 $ — $ — $ 527,381 Impact fees — wastewater 71,183 — — 71,183 Connection fees —water 60,714 — — 60,714 Connection fees — wastewater 29,400 — — 29,400 Connection fees — reclaimed water 47,169 — — 47,169 Depreciation on contributed assets: Current year (747,261) (3,281) (4,361) (754,903) Net change (11,414) (3,281) (4,361) (19,056) Contributed capital, October 1 25,619,331 22,971 123,284 25,765,586 Contributed capital, September 30 $25,607,917 $19,690 $118,923 $25,746,530 18. Excess of Expenditures over Appropriations For the year ended September 30, 2000, expenditures exceeded appropriations in the General fund by $186,651. This overexpenditure was funded by available fund balance. 58 0101 -0139452 *The City changed its funding method to the Aggregate Actuarial Cost Method. See accompanying notes to required supplementary information. 0101- 0139452 59 City of Edgewater, Florida Required Supplementary Information • Schedule of Pension Funding Progress Last Six Years Police Officers' Retirement Trust Fund Actuarial Unfunded (Assets in Actuarial Accrued Unfunded Excess of) AAL as a Actuarial Value of Liability (AAL) (Assets in Funded Covered Percentage of Valuation Assets - Entry Age Excess of) AAL Ratio Payroll Covered Payroll Date (a) (b) (b -a) (a /b) (c) ((b -a) /c) 10/01/94 $1,129,976 $1,523,213 $ 393,237 74.2 $ 871,746 45.1% 10/01/95 1,388,559 1,768,521 379,962 78.5 920,059 41.3 10/01/96 1,679,636 2,001,604 321,968 83.9 918,376 35.1 _ 10/01/97 1,827,091 2,166,313 339,222 84.3 1,001,927 33.9 10/01/98 2,344,955 2,694,072 349,117 87.0 1,049,925 33.3 10/01/99 2,672,255 4,313,393 1,641,138 61.0 995,602 164.8 General Employees' Pension Fund Actuarial Unfunded (Assets in Actuarial Accrued Unfunded Excess of) AAL as a Actuarial Value of Liability (AAL) (Assets in Funded Covered Percentage of Valuation Assets - Entry Age Excess of) AAL Ratio Payroll Covered Payroll Date (a) (b) (b -a) (a /b) (c) ((b -a) /c) 10/01/94 $2,612,304 $3,509,876 $897,572 74.4 $2,807,289 32.0% 10/01/95 3,302,594 4,139,201 836,607 79.8 2,738,633 30.5 10/01/96 4,075,673 4,850,901 775,228 84.0 2,912,784 26.6 10/01/97 5,245,266 5,873,295 628,029 89.3 2,682,998 23.4 10/01/98 6,065,741 6,212,561 146,820 97.6 2,476,098 5.9 I 10/01/99* 6,500,455 6,500,455 - 100.0 2,304,768 - Firefighters' Pension Fund Actuarial Unfunded (Assets in Actuarial Accrued Unfunded Excess of) AAL a Actuarial Value of Liability (AAL) (Assets in Funded Covered Percentage of Valuation Assets - Entry Age Excess of) AAL Ratio Payroll Covered Payroll Date (a) (b) (b -a) (alb) (c) ((b -a) /c) 10/01/94 $161,996 $161,996 - 100 $307,944 - 10/01/95 234,236 234,236 - 100 293,818 - 10/01/96 304,103 304,103 - 100 345,757 - 10/01/97 462,670 462,670 - 100 350,613 - 10/01/98 546,593 546,593 - 100 375,472 - 10/01/99 706,553 706,553 - 100 632,671 - *The City changed its funding method to the Aggregate Actuarial Cost Method. See accompanying notes to required supplementary information. 0101- 0139452 59 City of Edgewater, Florida Required Supplementary Information Schedule of Employer Contributions Last Six Years P olice Officers' Retirement Trust Fund Year Ended Sept. 30 1995 1996 1997 1998 1999 2000 Annual Pension Co st $159,583 100% 151,867 100 138,191 100 172,948 100 181,224 100 350,071 100 Percentage Contributed General Emplovees' Pension Fund Year Ended Annual Pension Percentage Sept. 30 Cost Contributed 1995 $568,685 100% 1996 526,514 100 1997 546,020 100 1998 462,796 100 1999 268,589 100 2000 301,864 100 Firefighters' Pension Fund Year Ended Sent. 30 Annual Pension Cost Percentage C ontributed 1995 1996 1997 1998 1999 2000 $48,848 48,530 65,735 61,653 71,331 99,161 See accompanying notes to required supplementary information. 100% 100 100 100 100 100 60 0101 -0139452 City of Edgewater, Florida Notes to the Required Supplementary Information Schedules of Pension Funding Progress and Employer Contributions 1. Actuarial Methods and Significant Assumptions: The valuation method used for funding the Police Officers Pension Fund is the Entry Age Normal— Frozen Initial Liability Actuarial Cost Method. This method spreads the total cost of the projected pension benefits for each employee from the date he is first eligible for the plan to his normal retirement age. The Firefighters Pension Fund and the General Employees Pension Eund uses the Aggregate Actuarial Cost Method, which does not identify or separately amortize unfunded actuarial liabilities. ' - Police General Officers Employees Firefighters Valuation date 10/01/99 10/01/99 10/01/99 Amortization method Level Dollar — Closed N/A N/A ' Period Remaining amortization 'i period 30 years N/A N/A Asset valuation method Actuarial assumptions: Investment rate of return Salary increases: Merit Inflation Retirement age Smoothed fair value over Smoothed fair value over 4 years 4 years Market n C 8% 7.5% A salary scale is used A salary scale is used which results in a which results in a variable rate of increases variable rate of increases for merit based on the for merit based on the participant's age. participant's age. 3.4% 3.5% 55 and 5 years of plan participation or 20 years of plan participation, whichever is earliest 60 with 5 years of accrued service or after 30 years of accrued service 2. Schedule of Pension Funding Progress 7.5% 4.5% 3.0% 55 with 5 years of service or age 52 and 25 years of service, whichever is earliest. Both the Firefighters' Pension Fund and the General Employees' Pension Fund (effective October 1, 1999) use the aggregate actuarial cost method for funding purposes, under which the inclusion of a schedule of funding progress is optional. The City has voluntarily chosen to include schedules of funding progress for these plans assuming the frozen entry age actuarial method, which is the funding method used for the Police Officers' Retirement Trust Fund. 0101- 0139451 61 This a e intentional) left blank. ' Pg Y t 1 0101- 0139452 r 1. W rr Combining, Individual Fund and Account Group Financial Statements and Schedules .. In 1 1 1 1 1 1 1 1 0101 -0139152 These financial statements provide a more detailed view of the "General Purpose Financial Statements" presented in the preceding subsection. Combining statements are presented when there is more than one fund of a given fund type. Individual fund statements are presented when there is only one fund of a given type. They are also necessary to present budgetary comparisons. This page intentionally left blank. so so so Mi 0101- 0139452 im in W 0 Proprietary Fund Type Enterprise Funds Enterprise Funds account for operations that are financed and operated in a manner similar to private enterprise, where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. r, Water and Sewer Fund The Water and Sewer Fund accounts for the fiscal activities of the r City's water and sewer treatment and distribution operations, as well as the funding and payment of related debt. Refuse Collection Fund The Refuse Collection Fund accounts for the fiscal activities of the City's refuse collection and disposal operation. Stormwater Management Fund The Stormwater Management Fund accounts for the fiscal activities of the City's stormwater drainage operation, as well as the funding and r payment of related debt. ors 0101- 0139452 r r City of Edgewater, Florida Combining Balance Sheet All Enterprise Funds ad September 30, 2000 Water and Refuse Stormwater September 30 Sewer Collection Management 2000 1999 Fund Fund Fund Total Total r Assets Current assets: Pooled cash and cash equivalents S 3,365,424 S 225,170 S 334,673 S 3,925,267 S 4,364,933 Accounts receivable 478,410 - 716 479,126 534,370 r Unbilled accounts receivable 176,025 58,581 - 234,606 232,396 Due from other governments - 6,750 - 6,750 6,677 Due from other funds - - 2,979 2,979 2,979 Inventory 45,168 - 8,854 54,022 54,021 Prepaid expenses - 3,608 - - 3,608 2,601 Total current assets 4,068,635 290,501 347,222 4,706,358 5,197,977 Restricted assets: Customer deposits: Cash and cash equivalents 448,000 - - 448,000 415,786 Revenue bond sinking fund: Cash and cash equivalents 1,057,412 - - 1,057,412 1,034,571 Accrued interest receivable - - - - 117 Renewal and replacement fund: Cash and cash equivalents 1,466,375 216,263 - 1,682,638 1,515,956 Development fund: Cash and cash equivalents 2,403,650 - - 2,403,650 1,956,527 j Wastewater special assessment funds: Cash and cash equivalents 1,329,542 - - 1,329,542 1,778,208 Special assessments - current 669,282 - - 669,282 638,209 Special assessments - noncurrent 11,236,408 - - 11,236,408 11,952,297 Accrued interest receivable 530,850 - - 530,850 561,325 Total restricted assets 19,141,519 216,263 - 19,357,782 19,852,996 Plant and equipment: Plant in service: Land 676,827 - - 676,827 676,827 Water plant 9,522,507 - - 9,522,507 9,522,507 Sewer plant 10,464,117 - - 10,464,117 10,464,117 Refuse collection facility - 37,317 - 37,317 37,317 Improvements other than buildings 28,169,471 75,273 4,424,243 32,668,987 32,304,191 Machinery and equipment 829,705 757,720 374,058 1,961,483 1,651,407 " 49,662,627 870,310 4,798,301 55,331,238 54,656,366 Less accumulated depreciation (10,814,984) (608,325) (657,915) (12,081,224 (10 546,997) 38,847,643 261,985 4,140,386 43,250,014 44,109,369 Construction in progress 927,710 - 9,444 937,154 52,450 39,775,353 261,985 4,149,830 44,187,168 44,161,819 Other assets: Unamortized debt issuance costs 424,845 - 11,509 436,354 484,359 Total assets S 63,410,352 S 768,749 S 4,508,561 S 68,687,662 S 69,697,151 rf r 66 oioauwu r r 10 lm to to Fund equity: Water and Refuse Stormwater September 30 Sewer Collection Management 2000 1999 Fund Fund Fund Total Total 2,233,532 Liabilities and fund equity Contributions from customers 22,757,441 - - 22,757,441 22,630,294 Current liabilities (payable from current assets): Contributions- -other 866,940 - - 866,940 901,762 Accounts payable S 341,517 S 93,394 S 15,442 S 450,353 S 414,681 25,765,588 Accrued liabilities 11,370 1,613 2,660 15,643 31,317 Accrued interest payable - 13 11 24 29 1,303,536 Notes payable- current 2,668 744 605 4,017 3,825 1,034,688 Total current liabilities (payable Reserved for equipment purchases - 216,263 - 216,263 212,420 from current assets) 355,555 95,764 18,718 470,037 449,852 3,130,056 Current liabilities (payable from 4,205,260 597,014 1,439,466 6,241,740 5,680,700 restricted assets): Total fund equity 29,813,177 616,704 1,558,389 31,988,270 31,446,288 Customer deposits 445,665 - - 445,665 415,792 Accrued interest payable 467,599 - - 467,599 492,913 69,697,151 Bonds payable --- current - - 225,709 225,709 214,152 Revenue bonds payable - current 345,000 - - 345,000 325,000 State revolving loan payable 1,104,326 - - 1,104,326 1,065,175 Total current liabilities (payable r from restricted assets) 2,362,590 - 225,709 2,588,299 2,513,032 Other liabilities: Accumulated employee benefits 197,671 53,811 37,317 288,799 268,599 r Notes payable- long -term 8,839 2,470 2,005 13,314 17,339 Bonds payable- long -term - - 2,666,423 2,666,423 2,892,132 Revenue bonds payable- net - long -term 12,535,734 - - 12,535,734 12,868,796 State revolving loan payable -long -term 18,136,786 - - 18,136,786 19,241,113 a 30,879,030 56,281 2,705,745 33,641,056 35,287,979 Total liabilities 33,597,175 152,045 2,950,172 36,699,392 38,250,863 to Fund equity: 67 Contributed capital: - Contributions from governmental agencies 1,983,536 19,690 118,923 2,122,149 2,233,532 Contributions from customers 22,757,441 - - 22,757,441 22,630,294 in Contributions- -other 866,940 - - 866,940 901,762 25,607,917 19,690 118,923 25,746,530 25,765,588 Retained earnings: Reserved for renewal and replacement 1,466,375 - - 1,466,375 1,303,536 IN Reserved for revenue bond retirement 1,057,412 - - 1,057,412 1,034,688 Reserved for equipment purchases - 216,263 - 216,263 212,420 Unreserved 1,681,473 380,751 1,439,466 3,501,690 3,130,056 N5 4,205,260 597,014 1,439,466 6,241,740 5,680,700 Total fund equity 29,813,177 616,704 1,558,389 31,988,270 31,446,288 L Total liabilities and fund equity S 63,410,352 S 768,749 S 4,508,561 S 68,687,662 S 69,697,151 67 ad City of Edgewater, Florida Combining Statement of Revenues, Expenses and Changes in Retained Earnings All Enterprise Funds Operating expenses: Refuse Stormwater Year ended September 30 Water and Collection Management 2000 1999 2,397,715 Sewer Fund Fund Fund Total Total Operating revenues: Materials and supplies 665,990 95,670 33,218 794,878 Charges for services: Repairs and maintenance 289,095 3,835 11,070 304,000 Water sales $2,282,241 $ - $ - $2,282,241 $2,166,244 Sewer sales 1,874,764 - - 1,874,764 1,862,677 Refuse collection charges - 1,272,278 - 1,272,278 1,247,107 Stormwater utility fees - - 758,447 758,447 742,279 Penalties 110,693 - - 110,693 106,767 Miscellaneous 51,821 2,210 - 54,031 89,808 Total operating revenues 4,319,519 1,274,488 758,447 6,352,454 6,214,882 Operating expenses: Personal services 1,572,968 586,961 301,745 2,461,674 2,397,715 Contractual services 65,667 536,843 47,880 650,390 610,157 Materials and supplies 665,990 95,670 33,218 794,878 658,179 Repairs and maintenance 289,095 3,835 11,070 304,000 316,839 Total operating expenses 2,593,720 1,223,309 393,913 4,210,942 3,982,890 Operating income before depreciation 1,725,799 51,179 364,534 2,141,512 2,231,992 Less depreciation expense (1,310,366) (53,797) (160,696) (1,524,859) (1,504,921) Operating income (loss) 415,433 (2,618) 203,838 616,653 727,071 Nonoperating revenues (expenses): Interest revenue 1,257,345 40,549 32,164 1,330,058 1,150,964 State Recycling Grant - 6,750 - 6,750 6,677 State DCA Grant - - - - - 1,007 Loss on disposal of fixed assets - - - - (1,635) Interest/amortization expense (1,523,659) (175) (164,941) (1,688,775) (1,758,327) Total nonoperating revenues (expenses) (266,314) 47,124 (132,777) (351,967) (601,314) Income before operating transfers 149,119 44,506 71,061 264,686 125,757 Operating transfers in - - 1,177 1,177 6,869 Operating transfers out (279,981) (131,200) (48,545) (459,726) (388,582) Net income (loss) (130,862) (86,694) 23,693 (193,863) (255,956) Add back depreciation expense related to contributed assets 747,261 \3,281 4,361 754,903 754,754 Net increase (decrease) in retained earnings 616,399 (83,413) 28,054 561,040 498,798 Retained earnings at beginning of year 3,588,861 680,427 1,411,412 5,680,700 5,181,902 Retained earnings at end of year $4,205,260 $ 597,014 $1,439,466 $6,241,740 $5,680,700 No id Id 40 No 10 Ed Id Id 68 0101.0139452 .i Ylr r 4r w City of Edgewater, Florida Page 1 of 2 Combining Statement of Cash Flows All Enterprise Funds Water and Refuse Stormwater Year ended September 30 Sewer Collection Management 2000 1999 Fund Fund Fund Total Total Cash flows from operating activities: Cash received from customers $ 4,157,005 $1,267,278 $574,492 $ 5,998,775 $ 6,127,131 Cash payments to suppliers for goods and services (1,020,752) (743,385) (92,168) (1,856,305) (1,552,220) Cash payments to employees for services (1,152,924) (420,341) (301,745) (1,875 010) (2,278 267) Net cash provided by operating activities 1,983,329 103,552 180,579 2,267,460 2,296,644 Cash flows used in capital and related financing activities: Acquisition and construction of capital assets Interest paid Contributions for acquiring assets Principal payments: Revenue bonds State revolving loan Capital leases Note payable Total cash flows used in capital and related financing activities Cash flows used in noncapital and related financing activities: Operating transfers to other funds Operating transfers from other funds Proceeds from state recycling grant Total cash flows used in noncapital and related financing activities Cash flows provided by investing activities: Interest revenue Total cash flows provided by investing activities Net increase (decrease) in cash and cash equivalents (460,815) (185,185) (28,399) (674,399) (406,998) (1,463,640) (175) (164,941) (1,628,756) (1,612,096) 546,017 - - 546,017 1,078,978 (325,000) - (214,152) (539,152) (398,166) (1,065,175) - - (1,065,175) (1,027,413) (9,671) (2,540) (709) (576) (3,825) (3,640) (2,771,153) (186,069) (408,068) (3,365,290) (2,379,006) (279,981) (131,200) (48,545) (459,726) (388,582) - - 1,177 1,177 6,869 6,750 - 6,750 1,217 (279,981) (124,450) (47,368) (451,799) (380,496) 1,257,447 40,546 32,164 1,330,157 1,176,402 1,257,447 40,546 32,164 1,330,157 1,176,402 189,642 (166,421) (242,693) (219,472) 713,544 ■ Cash and cash equivalents at beginning of year 9,880,761 607,854 577,366 11,065,981 10,352,437 Cash and cash equivalents at end of year $10,070,403 $ 441,433 $334,673 $10,846,509 $11,065,981 ' 0101- 0139452 69 I City of Edgewater, Florida Page 2 of 2 ad Combining Statement of Cash Flows All Enterprise Funds as rll 70 0101.0139452 dw Water and Refuse Stormwater Year ended September 30 Sewer Collection Management 2000 1999 Fund Fund Fund Total Total Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) $ 415,433 $ (2,618) $203,838 $ 616,653 $ 727,071 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 1,310,366 53,797 160,696 1,524,859 1,504,921 Decrease (increase) in accounts receivable 55,383 577 (717) 55,243 (113,860 ) (Increase) decrease in unbilled accounts receivable (2,392) 182 — (2,210) 6,282 Decrease in inventory — — — — 1 Increase in customer deposits 32,214 — — 32,214 36,675 (Increase) decrease in prepaid expenses (1,007) — — (1,007) 4,665 Increase (decrease) in accounts payable 170,412 51,616 (186,356) 35,672 153,024 Decrease in accrued liabilities (8,778) (4,123) (1,262) (14,163) (150,677) Increase in accrued employee benefits 11,698 4,121 4,380 20,199 128,542 Net cash provided by operating activities $1,983,329 $103,552 $180,579 $2,267,460 $2,296,644 as rll 70 0101.0139452 dw a IN Fiduciary Fund Types These funds account for assets held by a governmental unit in a trustee capacity or as an agent for individual private organizations, other governmental units, and/or other funds. Pension Trust Funds W Municipal Police Officers' Retirement Trust Fund The Police Officers' Retirement Trust Fund is used to account for the fiscal activities of the Edgewater Police Pension Board, which accumulates assets and ultimately pays benefits to qualified retirees of the Edgewater Police Department in accordance with a defined benefit plan. ft General Employees' Pension Fund The General Employees' Pension Fund is used to account for the fiscal activities of the Board of Trustees for the City of Edgewater's General Employees' Pension Fund, which accumulates assets and will ultimately pay benefits to qualified retirees of the City of Edgewater in accordance with a defined benefit plan. Municipal Firefighters' Retirement Trust Fund The Firefighters' Retirement Trust Fund is used to account for the fiscal activities of the Edgewater Firefighter Pension Board, which accumulates assets and ultimately pays benefits to an qualified retirees of the Edgewater Fire Department in accordance with a defined benefit plan. an r 0101.0139452 r City of Edgewater, Florida Combining Statement of Plan Net Assets All Pension Trust Funds Assets Investments: Debt mutual funds Equity mutual funds Other mutual funds Total investments Interest and dividends receivables Total assets Liabilities Accounts payable Total liabilities September 30, 2000 Municipal $2,820,942 Police General Officers' Employees' Firefighters' Retirement Pension Pension Trust Fund Trust F und Fund Total $1,331,716 $2,820,942 $330,312 $ 4,482,970 1,259,384 3,827,529 485,415 5,572,328 576,456 1,467,500 143,507 2,187,463 3,167,556 8,115,971 959,234 12,242,761 — — 25 25 3,167,556 8,115,971 959,259 12,242,786 1,035 — 1,035 1,035 — 1,035 Net Assets Net assets held in trust for pension benefits $3,167,556 $8,114,936 $959,259 $12,241,751 r r r-� 72 0101 - 013 City of Edgewater, Florida Combining Statement of Changes in Plan Net Assets All Pension Trust Funds For the fiscal year ended September 30, 2000 Additions: Contributions: Employer Employees State of Florida Total contributions Investment income: Investment and dividend income Net change in fair value of plan investments Investment expenses Net investment income Total revenues Deductions: Municipal $ 808,525 Police General Officers' Employees' Firefighters' Retirement Pension Pension - Trust Fund Trust Fund Fund Total $ 350,071 $ 301,864 76,890 - 426,961 301,864 $156,590 $ 808,525 40,695 117,585 13,141 13,141 210,426 939,251 183,919 594,145 193 778,257 (2,656) (30,822) 55,743 22,265 260,761 1,583,966 Administrative expenses _ 9,521 (9,620) - (5,601) (15,221) 171,643 563,323 50,335 785,301 598,604 865,187 260,761 1,724,552 Benefits payments 25,997 114,589 - 140,586 Income before administrative expenses 572,607 750,598 260,761 1,583,966 Administrative expenses _ 9,521 16,163 4,550 30,234 Net increase 563,086 734,435 256,211 1,553,732 Net assets held in trust for pension benefits: - Beginning of year 2,604,470 7,380,501 703,048 10,688,019 End of year $3,167,556 $8,114,936 $959,259 $12,241,751 0101- 0139452 73 This page intentionally left blank. 0101 - 0139452 1 Supporting Schedules Financial schedules are presented to provide greater detailed information than reported in ' the preceding financial statements. This information, in many cases, has been spread throughout the report and is brought together here for greater clarity. Financial schedules ' are not necessary for fair presentation in conformity with generally accepted accounting principles. 1 0101 -0139452 J This page intentionally left blank. J 0101 -0139452 j General Fixed Assets Account Group General Fixed Assets are those fixed assets of the City which are not accounted for in an Enterprise or Trust Fund. To be classified as a fixed asset in this category ' a specific piece of property must possess three attributes: (1) tangible nature; (2) a life longer than the current fiscal year; and (3) a significant value. The General Fixed Assets are a self - balancing account group which require adequate accounting procedures and records to assure their protective custody. 1 0101 -0139452 City of Edgewater, Florida General Fixed Assets Account Group Schedule of General Fixed Assets By Source September 30 2000 1999 General fixed assets: Land $ 1,415,499 $ 1,415,499 Buildings 2,354,501 2,351,415 Improvements other than buildings 14,081,344 13,980,790 Machinery and equipment 3,204,494 2,884,775 Construction in progress 2,041,267 269,448 Total general fixed assets $23,097,105 $20,901,927 Investment in general fixed assets from: General Fund revenues $14,610,171 $12,414,992 Federal grants and entitlements 668,689 668,689 Gifts 7,818,245 7,818,246 Total investment in general fixed assets $23,097,105 $20,901,927 78 0101 - 0139452 1 1 1 1 1 1 1 1 1 1 1 1 1 City of Edgewater, Florida General Fixed Assets Account Group Schedule of General Fixed Assets By Function and Activity September 30, 2000 0101.0139452 79 Improvements Machinery Otherthan and Function and Activity Total Land Buildings Buildings Equipment General government $ 562,884 $ 300 $ 175,818 - $ 29,382 $ 357,384 Public safety 3,313,792 105,591 1,152,977 10,635 2,044,589 Highways and streets 13,223,017 6,906 58,268 12,743,724 414,119 Library 672,503 45,811 512,526 114,166 — Recreation 3,283,642 1,256,891 454,912 1,183,437 388,402 Total general fixed assets allocated to function $1,415,499 $2,354,501 $14,081,344 $3,204,494 Construction in progress 2,041,267 Total general fixed assets $23,097,105 0101.0139452 79 City of Edgewater, Florida General Fixed Assets Account Group Schedule of Changes In General Fixed Assets By Function and Activity For the year ended September 30, 2000 r 80 0101 -0199452 ' General Fixed General Fixed Assets Assets October 1, September 30, Function and Activity - 1999 Additions Deletions 2000 General government $ 545,232 $ 56,727 $ 39,075 $ 562,884 Public safety 3,138,562 213,284 38,054 3,313,792 Highways and streets 13,205,482 60,030 42,496 13,223,016 Library 679,239 — 6,736 672,503 Recreation 3,063,964 231,709 12,030 3,283,643 Construction in progress 269,448 1,771,819 — 2,041,267 $20,901,927 $2,333,569 $138,391 $23,097,105 r 80 0101 -0199452 ' 1 1 1 E L Y r 1 1 1 1 1 1 1 1 1 1 0101- 0139452 General Long -Term Debt Account Group The General Long -Term Debt Account Group is a self - balancing account group set up to account for the unmatured general long-term debt of a government. General long -term debt consists of the noncurrent portion of all debt other than interfund advances expected to be repaid from funds received by governmental fund types. In the City of Edgewater, Florida, the account group has been established to account for the noncurrent liability associated with the accrual of employee compensated absences. Rather, that portion of the total liability for compensated absences which is not expected to be liquidated with expendable available financial resources within the next year. City of Edgewater, Florida General Long -Term Debt Account Group Schedule of General Long -Term Debt September 30 2000 1999 Amount available for debt service Amount to be provided for the payment of general long- term debt Total available and to be provided General long -term debt payable: Accrued noncurrent portion of employee compensated absences payable Capital improvement bonds —Series 1995A Capital improvement bonds —Series 1995B Note payable — Volusia County Total general. long -term debt payable $ 342,838 $ 286,219 7,512,007 8,013,347 $7,854,845 $8,299,566 $ 768,169 $ 674,711 4,913,743 5,326,653 2,081,264 2,186,308 91,669 11 1,894 $7,854,845 $8,299,566 82 0101- 0139452 ' City of Edgewater, Florida Page 1 of 2 Schedule of Revenues and Other Financing Sources- ' Budget and Actual General Fund t 010"139452 83 Year ended September 30, 2000 Variance Favorable Budget Actual (Unfavorable) Revenues Taxes: Ad valorem taxes $2,366,223 $2,376,413 $ 10,190 Franchise fees Utility service taxes 659,800 1,407,000 655,118 1,428,008 (4,682) 21,008 State sales tax 750,000 842,835 92,835 Local option gas 318,000 346,320 28,320 5,501,023 5,648,694 147,671 Licenses and permits: ' Occupational licenses 60,200 65,290 5,090 Building permits 147,850 201,962 54,112 208,050 267,252 59,202 Intergovernmental revenues: ' State revenue sharing 420,000 436,300 16,300 Mobile home fees 23,000 22,045 (955) Gasoline tax rebate 9,000 - (9,000) Cigarette tax 2¢ additional 52,000 45,612 (6,388) Beverage licenses 9,000 6,872 (2,128) County occupational licenses 20,000 21,858 1,858 Federal grants 22,500 - (22,500) State grants - 112,702 112,702 fi County grants - - - Firefighters' supplemental compensation 2,520 3,120 600 Other transportation 8,709 14,570 5,861 566,729 663,079 96,350 Charges for services: Zoning fees 6,000 4,462 (1,538) Recreation fees and charges 85,000 118,499 33,499 Miscellaneous 10,500 9,393 (1,107) Driveway use permit 6,250 7,577 1,327 107,750 139,931 32,181 t 010"139452 83 City of Edgewater, Florida Page 2 of 2 Schedule of Revenues and Other Financing Sources (continued) Budget and Actual General Fund Year e nded September 30, 2000 Fines and forfeitures: Court fines Police education Parking Miscellaneous: Interest revenue Sale of property and equipment Miscellaneous Total revenues Other financing sources: Transfer from Water /Sewer, Refuse and Stormwater Funds Total other financing sources Total revenues and other financing sources 200,000 212,578 Variance 3,000 — Favorable Budget Actual (Unfavorable) 226,100 305,469 79,369 64,000 76,467 12,467 500 302 (198) 400 890 490 64,900 77,659 12,759 200,000 212,578 12,578 3,000 — (3,000) 23,100 92,891 69,791 226,100 305,469 79,369 6,674,552 7,102,084 427,532 459,726 459,726 — 459,726 459,726 — $7,134,278 $7,561,810 $427,532 84 010"139452 1 ' City of Edgewater, Florida Schedule of Expenditures Budget and Actual General Fund 1 IL Financial and administrative: $ 2,526 General government 23,994 City Council: Personal services 49,027 Operating expenditures (9,718) Total legislative 39,020 City Manager: 5,512 Personal services Operating expenditures (100,497) Capital outlay .� Total executive IL Financial and administrative: $ 2,526 Personal services Operating expenditures 23,994 Capital outlay 49,027 Total financial and administrative (9,718) Legal department: 39,020 Personal services 5,512 Operating expenditures (100,497) Total legal department IL City Clerk: $ 2,526 Personal services 23,994 Operating expenditures 49,027 Capital outlay (9,718) Debt service 39,020 Total City Clerk Other government services: Personal services Operating expenditures Capital outlay Operating contingency Total other government services Page 1 of 4 Year ended September 30, 2000 Actual Budget Actual (Over) Under (Revised) Expenditures Budget $ 37,277 $ 34,751 $ 2,526 11,750 23,994 (12,244) 49,027 58,745 (9,718) 120,532 39,020 81,512 5,512 106,009 (100,497) - 6,144 (6,144) 126,044 151,173 (25,129) 167,964 200,731 (32,767) 29,425 59,678 (30,253) 1,500 14,054 (12,554) 198,889 274,463 (75,574) 38,834 41,782 (2,948) 113,312 70,286 43,026 152,146 112,068 40,078 104,407 100,829 3,578 97,612 102,859 (5,247) 2,450 2,450 - 19,916 16 19,900 224,385 206,154 18,231 207,682 21,845 185,837 73,488 127 (54,388) - 144,706 (144,706) - 41,200 (41,200) 281,170 335,627 (54,457) 1 010"139452 85 r City of Edgewater, Florida - Schedule of Expenditures (continued) Budget and Actual General Fund General government (continued) Planning and zoning: Personal services Operating expenditures Capital outlay Debt service Total planning and zoning Personnel administration: Personal services Operating expenditures Total personnel administration Maintenance: Personal services Operating expenditures Capital outlay Debt service Total maintenance Total general government Page 2 of 4 Year ended September 30, 2000 Actual Budget Actual (Over) Under (Revised) Expenditures Budget 121,298 130,139 (8,841) 78,525 67,925 10,600 6,500 6,179 321 369 369 — 206,692 204,612 2,080 89,230 127,999 (38,769) 19,442 17,838 1,604 108,672 145,837 (37,165) 119,991 105,785 14,205 3,724 2,893 831 17,225 17,205 20 168 168 — 141,108 126,051 15,057 1,488,133 1,614,730 (126,597) 86 0101 -0139452 a e J 1 1 1 1 1 1 Public safety Police division: Personal services Operating expenditures Capital outlay Debt service Total police division Fire division: Personal services Operating expenditures Capital outlay Debt service Total fire division Building division: Personal services Operating expenditures Capital outlay L Debt service Total building division t L Civil defense: Operating expenses Capital outlay Total civil defense Total public safety City of Edgewater, Florida Page 3 of 4 Schedule of Expenditures (continued) Budget and Actual General Fund Year ended September 30, 2000 Actual Budget Actual (Over) Under (Revised) Expenditures Budget 2,238,945 2,337,284 (98,339) 223,777 271,324 (47,547) 144,550 153,234 (8,684) 94,706 15,045 79,661 2,701,978 2,776,887 (74,909) 1,045,407 1,136,281 (90,874) 231,753 185,145 46,608 76,396 49,547 26,849 6,827 6,827 — 1,360,383 1,377,800 (17,417) 244,206 213,246 30,960 16,674 15,037 1,637 694 694 — 261,574 228,977 32,597 13,800 5,720 — 15,151 8,080 (15,151) 13,800 20,871 (7,071) 4,337,735 4,404,535 (66,800) 0101.0139452 87 di City of Edgewater, Florida Page 4 of 4 Schedule of Expenditures (continued) Budget and Actual General Fund Culture /recreation Libraries: Operating expenditures 1,500 1,047 453 Total libraries 1,500 1,047 453 Parks department: Personal services Year ended September 30, 2000 457,603 640 Operating expenditures Actual 269,559 Budget Actual (Over) Under 1,759,693 (Revised) Expenditures Budget Transportation - Total parks department 2,579,234 Public works: 91,118 Total culture /recreation 2,580,734 Personal services 247,825 256,560 (8,735) Operating expenditures - 390,498 410,865 (20,367) Capital outlay 17,532 73,253 (55,721) Debt service 1,205 1,205 - Total public works 657,060 741,883 (84,823) Total transportation 657,060 741,883 (84,823) Culture /recreation Libraries: Operating expenditures 1,500 1,047 453 Total libraries 1,500 1,047 453 Parks department: Personal services 458,244 457,603 640 Operating expenditures 285,363 269,559 15,806 Capital outlay 1,834,364 1,759,693 74,671 Debt service 1,263 1,263 - Total parks department 2,579,234 2,488,118 91,118 Total culture /recreation 2,580,734 2,489,165 91,571 Total expenditures 9,063,662 9,250,313 (186,649) Other financing uses: Transfer to Debt Service Fund 353,429 353,429 - Transfer to Stormwater Management Fund 6,800 1,178 5,622 Total other financing uses 360,229 354,607 5,622 Total expenditures and other financing uses $9,423,891 $9,604,920 $181,029 Note: The capital outlay and debt service expenditures have been allocated to each of the functional expenditures. ft as W M as 0 so 88 0101- 0139452 1 1 ' Statistical Section 1 1 ll 1 0101-0139452 This page intentionally left blank. w 0101 - 0139452 i r 1 0101.0139452 Statistical Information Comments Relative to Statistical Section The following statistical tables that are recommended for inclusion by the Government Finance Officers Association are not included for the reasons stated below: A. Ratio of Net General bonded Debt to Assessed Value and Net Bonded Debt per Capita —Last Ten Fiscal Years —The City has not had any general bonded debt over the past ten fiscal years. B. Ratio of Annual Debt Service for General bonded Debt to Total General Expenditures —Last Ten Fiscal Years —The City has not had any general bonded debt over the past ten fiscal years. C. Florida Statutes and the Charter of the City of Edgewater, Florida, set no legal debt margin. Table I City of Edgewater, Florida General Governmental Expenditures by Function (1) Last Ten Fiscal Years Fiscal Year General Ended Total Government Public Safety Transportation 1991 $ 4,964,456 $1,124,113 $1,923,639 $713,485 1992 4,864,427 1,236,591 2,268,333 577,909 1993 5,412,429 1,283,289 2,429,353 616,813 1994 5,536,175 1,374,732 2,618,319 539,395 1995 5,965,527 1,475,527 2,774,643 484,726 1996 12,357,998 1,496,667 2,762,925 429,734 1997 11,563,627 1,578,623 2,979,253 400,222 1998 7,177,744 1,871,415 3,012,478 328,927 1999 7,720,056 1,194,392 3,283,992 301,660 2000 10,163,707 1,423,439 4,164,037 667,425 (1) Includes General, Capital Projects and Debt Service Funds. 92 0101- 0139452 Culture and Capital Debt Claims and Recreation Outlay Service Judgments $391,747 $ 684,116 $247,362 $ — 521,751 106,456 153,387 — 522,092 426,366 134,516 — 559,520 402,505 41,704 — 599,877 557,493 73,261 — 623,604 6,054,969 990,099 — 590,121 5,061,279 954,129 — 601,396 414,808 944,559 — 616,686 1,375,499 943,649 — 728,209 2,241,616 938,981 — 0101- 0139052 93 Table II City of Edgewater, Florida General Governmental Revenues by Source (1) Last Ten Fiscal Years Licenses Inter - Fiscal Year and Governmental Ended Total Taxes Per mits Revenu 1991 $4,291,774 $3,320,548 $120,803 1992 4,558,741 3,549,919 123,279 1993 4,989,875 3,774,500 133,884 1994 5,507,841 4,333,768 169,855 1995 6,830,328 4,386,811 160,758 1996 7,547,035 5,016,151 181,459 1997 7,293,444 5,147,962 179,136 1998 7,468,670 5,484,239 185,503 1999 7,672,589 5,516,973 220,890 2000 7,718,669 5,648,694 267,252 (1) Includes General, Capital Projects and Debt Service Funds. $513,480 546,840 778,541 580,153 549,529 574,174 688,286 667,988 806,787 663,079 94 0101.0139452 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Charges for Services Fines and Forfeitures Interest Special Assessments Miscellaneous Revenue $ 87,037 $100,194 $ - $ - $149,712 105,811 89,233 - - 143,659 100,463 104,826 - - 97,661 1 95,180 108,739 - - 120,146 1,380,438 96,340 - - 256,452 146,434 97,328 813,149 298,767 419,573 111,478 83,247 547,977 288,851 246,507 123,692 75,309 24,910 609,286 297,743 141,439 91,658 27,973 595,790 271,079 139,931 77,659 39,121 577,464 305,469 0101- 01N452 95 Table III City of Edgewater, Florida Property Tax Levies and Collections Last Ten Fiscal Years (1) Fiscal Total Total Tax Percent of Levy Year Ended Tax Levy Collections Collected 1991 $1,414,943 $1,368,737 96.73% 1992 1,528,324 (2) 1,490,549 97.52 1993 1,592,474 1,534,987 96.39 1994 2,073,547 2,010,161 96.94 1995 2,113,146 2,040,928 96.58 1996 2,608,024 2,516,081 96.47 1997 2,528,985 2,440,210 96.49 1998 2,576,393 2,491,303 96.70 1999 2,538,138 2,443,445 96.27 2000 2,463,013 2,376,413 96.48 (1) Each fiscal year contains data from the ad valorem assessment roll of the preceding year (i.e., fiscal year 2000 contains the 1999 assessment roll tax collections). (2) Source: "Certification of Final Taxable Value" (Form DR -422). 96 0101.013W2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 L L l Table IV City of Edgewater, Florida Assessed and Estimated Actual Value of Taxable Property (1) Last Ten Fiscal Years (In thousands) Ratio of Total Ratio of Total Assessed to Assessed ( Total (3) Taxable Value Fiscal Year Assessed Estimated Actual Estimated Assessed to Estimated Ended Value Value Actual Value Taxable Value Actual Value 1991 $424,565 $424,565 100.00 $308,805 - 72.73 1992 453,643 453,643 100.00 332,346 73.26 1993 474,058 474,058 100.00 346,190 73.03 1994 484,289 484,289 100.00 352,153 72.72 1995 499,443 499,443 100.00 361,840 72.45 1996 516,875 516,875 100.00 367,272 71.06 1997 542,399 542,399 100.00 383,761 70.75 1998 561,103 561,103 100.00 400,061 71.29 1999 572,804 572,804 100.00 403,519 70.44 2000 589,101 589,101 100.00 413,951 70.26 (1) Obtained from the Revised Recapitulation of the Ad Valorem Assessment Rolls of Edgewater, Florida provided by Volusia County, Florida Finance Department. (2) Each fiscal year contains the ad valorem assessment roll of the preceding year (i.e., fiscal year 2000, contains data on the 1999 assessment roll). (3) Assessed taxable values for all fiscal years presented are stated net of the constitutional homestead exemption of $25,000. 0101 - 0139452 97 as Table V City of Edgewater, Florida Property Tax Rates -All Direct and Overlapping Governments Last Ten Fiscal Years Tax rates per $1,000 of assessed taxable values 98 0101.0139452 FAWwater soudwast Volrma Inlet and Florida Inland St Johns Water Final Year C Ameral School Volusia HoWltal Mosquito Port Navigation Managenient Ended Fund District County District Control Authority District District Total 1991 4.600 9.548 5.191 2.218 0.324 0.095 0.055 0.358 22.389 - 1992 4.600 9.548 5.070 2.218 0.316 0.093 0.053 0.358 22.256 1993 4.600 9.548 5.063 2.329 0.315 0.093 0.052 0.358 22.358 1994 5.888 9.869 5.627 2.332 0.318 0.094 0.051 0.470 24.649 1995 5.840 10.277 5.716 2.292 0.287 0.094 0.049 0.482 25.037 1996 7.101 10.887 6.172 2.285 0.262 0.094 0.040 0.482 27.323 1997 6.590 10.821 6.217 2.247 0.238 0.093 0.038 0.482 26.726 1998 6.440 10.487 6.381 2.132 0.238 0.090 0.050 0.482 26.300 1999 6.290 10.376 6.378 2.052 0.238 0.090 0.047 0.482 25.953 2000 5.950 9.158 6.367 2.528 .238 0.090 0.041 0.472 24.844 Tax rates per $1,000 of assessed taxable values 98 0101.0139452 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Table VI City of Edgewater, Florida Special Assessments Collections NOTE: Special assessments program began in 1992. Therefore, this schedule only has activity from 1993 -2000. 0101 -0139452 .. Water and Sewer Fund Since Levy Road Improvement Assessments Current Current Current Current Fiscal Assessments Assessments Assessments Assessments Year Ended Due Collected Due Collected 1993 $ 87,975 $257,497 $ — $ — 1994 453,668 766,062 — — 1995 473,499 586,927 771,418 1,366,243 1996 529,579 608,631 238,813 298,767 1997 554,850 644,377 251,480 288,851 1998 580,364 624,088 265,575 293,139 1999 608,750 655,258 281,544 299,546 2000 638,209 684,687 297,401 310,973 NOTE: Special assessments program began in 1992. Therefore, this schedule only has activity from 1993 -2000. 0101 -0139452 .. Table VII City of Edgewater, Florida Computation of Overlapping Debt September 30, 2000 (1) . Data provided by above agencies. (2) The City does not have any general obligation long -term debt outstanding. 100 0101.0139452 Percentage City of Applicable to Edgewater Net Debt the City of Share of Overlapping Governments Outstanding Edgewater Debt Volusia County Endangered Land $ 3,999,582 2.75% $ 109,837 Volusia County School District 171,047,585 2.75 4,697,369 Total overlapping debt $4,807,206 (1) . Data provided by above agencies. (2) The City does not have any general obligation long -term debt outstanding. 100 0101.0139452 Table VIII City of Edgewater, Florida Demographic Statistics Last Ten Fiscal Years (1) Obtained from University of Florida, Bureau of Economics and Business Research. Census Bureau estimate for April 2000 and City of Edgewater Planning Dept. (2) Obtained from Volusia County Supervisor of Elections. (3) Obtained from U.S. Department of Commerce, Bureau of Economic Analysis. (4) State of Florida, Department of Labor and Employment Security. (5) Volusia County School Board - includes grades K -5, Edgewater Elementary School and Indian River Elementary School. (6) Census Bureau (1990) and New Smyrna Beach, Edgewater, Oak Hill, Chamber of Commerce Age Distribution (1987 -CACI Source book). 0101- 0139452 101 (1) (2) (3) Per (4) County (5) School (6) Fiscal Estimated Registered Capita Unemployment Percent Median Year Population Voters Income Rate Enrollment Attendance Age 1991 15,975 8,481 16,183 7.3 1,381 97 - 1992 16,394 8,910 16,609 8.3 1,449 95 - 1993 16,745 9,261 17,261 6.4 1,495 96 - 1994 17,096 9,024 16,526 6.4 1,540 95 - 1995 17,484 10,942 18,730 4.9 1,534 95 - 1996 17,820 11,158 18,815 4.2 1,524 95 - 1997 18,077 11,196 19,455 4.0 1,546 95 - 1998 18,761 11,821 19,787 3.2 1,495 96 - 1999 18,865 11,786 20,309 3.0 1,484 95 46.7 2000 19,343 12,839 21,920 2.9 1,491 95 - (1) Obtained from University of Florida, Bureau of Economics and Business Research. Census Bureau estimate for April 2000 and City of Edgewater Planning Dept. (2) Obtained from Volusia County Supervisor of Elections. (3) Obtained from U.S. Department of Commerce, Bureau of Economic Analysis. (4) State of Florida, Department of Labor and Employment Security. (5) Volusia County School Board - includes grades K -5, Edgewater Elementary School and Indian River Elementary School. (6) Census Bureau (1990) and New Smyrna Beach, Edgewater, Oak Hill, Chamber of Commerce Age Distribution (1987 -CACI Source book). 0101- 0139452 101 Table IX City of Edgewater, Florida Property Value, Construction and Bank Deposits Last Ten Fiscal Years Fiscal Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 (1) Commercial Construction Units Value 6 $ 727 15 11,073 2 138 5 900 8 1,987 13 2,379 20 2,224 35 2,465 11 1,755 23 6,743 Deposits Banks 56,382 80,794 76,568 88,750 93,927 96,342 190,381 209,575 201,653 201,494 (1) Savings and Loan 86,469 84,285 89,859 91,544 95,542 87,419 Assessed Value $424,565 453,643 474,058 484,289 499,443 516,875 542,399 561,103 572,804 589,101 (1) Provided by Florida Bankers Association. (2) Obtained from revised recapitulation of the ad valorem assessment rolls of the City of Edgewater. 102 0101 - 0139452 (In thousands) (2) Residential Construction Units Value 125 $ 7,740 141 6,816 106 6,877 126 8,015 70 5,799 124 10,068 105 7,626 116 9,944 201 15,834 195 19,077 Deposits Banks 56,382 80,794 76,568 88,750 93,927 96,342 190,381 209,575 201,653 201,494 (1) Savings and Loan 86,469 84,285 89,859 91,544 95,542 87,419 Assessed Value $424,565 453,643 474,058 484,289 499,443 516,875 542,399 561,103 572,804 589,101 (1) Provided by Florida Bankers Association. (2) Obtained from revised recapitulation of the ad valorem assessment rolls of the City of Edgewater. 102 0101 - 0139452 1 11 J -1 Table X City Of Edgewater, Florida Summary of Ten Largest Single Unit Water Users Customers County of Volusia Eastern Shores Mobile Village Coronado Paint Company Volusia County Schools Halifax Court Publix Supermarket, Inc. Pyramid Park Blue Gables, Inc. Winn Dixie Friendly Shores HOA September 30, 2000 Average Consumption Percent of Per Month (Gallons) Total Gallons (1) Consumed 7,064,000 15.10% 513,000 1.10 343,000 .73 167,000 .36 123,000 .26 122,000 .26 105,000 .22 104,000 .22 88,000 .19 87,000 .19 8,716,000 18.63% I FY -2000 average monthly consumption: 46,929,420 gallons ' (1) Based on individual meter connections per City of Edgewater, Florida, records. 0 (2) The total average monthly consumption for the ten largest water users increased from the previous year by a total of 3,775,000 gallons. (3) Water restrictions implemented by the St. Johns River Water Management District, Volusia County, and the City of Edgewater continue to be in effect. Reclaimed water has been available to the Florida Shores area since 1994. A total of 2,071 customers were connected to the reclaimed/reuse water system at year end. 0101.0139452 103 Table XI City of Edgewater, Florida Principal Taxpayers September 30, 2000 Assessed Custome Valuation Percent of Total Assessed Valuation Florida Power & Light Coronado Paint Company, Inc. BellSouth Communications, Inc. Edgewater Commons Laramie Florida Shores, LP Bel Aire Investments, Inc. First Federal Savings and Loan Association Carder, James and Rosemary Tarmac Florida Inc. Time Warner Entertainment $10,001,235 1.70% 5,821,814 .98 4,242,793 .73 3,144,401 .53 2,749,269 .47 2,162,842 .37 1,903,500 .32 1,805,748 .31 1,746,848 .29 1,717,686 .29 $35,296,136 5.99% Source: 1999 ad valorem tax rolls of the City of Edgewater, Florida. DR -403AM FY -2000 total assessed valuation $589,101,000. 104 0101 -0139452 1 S Table XII City of Edgewater, Florida ' Miscellaneous Statistical Data September 30, 2000 0101- 0139451 105 The City of Edgewater lies just south of New Smyrna Beach, along the Atlantic coastline. Beginning as the small village of Hawk's Park with 115 permanent residents in 1871, the name was formally changed to Edgewater in 1925. The apiaries of the early days evolved into a large honey company which exports internationally. A large paint factory, a thriving building industry, boat building, garment factories and other light manufacturing provide employment. A friendly city with a small town flavor, Edgewater has a wide variety of residential options. City Operations: Community Facilities: ' Police Department: Nearest Commercial Airport: Sworn Officers 34 Daytona Beach International Civilian Employees 14 Reserve Officers 1 Financial Institutions Animal Control Officers 2 Churches Fire Department: Libraries Post Office locations Insurance rating Class 5/9 Electric service: Number of stations 2 Florida Power & Light Full time firefighters 18 Telephone Service: Volunteer firefighters 21 Bell South Civilian employees 2 Cable TV Service: Reserves 1 Time Warner Communications, Inc. City Parks (Active and Open Space) 14 Park acreage 137 Garbage/Trash Collection: Type: Pickups /wk 10/1/96 Residential service 2 $11.50 Commercial/Industrial service 2 $13.00 Recycling 1 $1.50 Water Service: Sewer Service: Source: Florida Upper Aquifer System Type: Advanced Wastewater Treatment Plant capacity: 5.0 mgd Average Daily Flow: 1.689 mgd Average daily demand 1.749 mgd Plant Capacity: 2.750 mgd Treatment Lime softening Avg. Capacity Used Daily 61.4% Avg. Daily Reclaimed Water 1.344 mgd Monthly Residential and Commercial Rates: Effective 10/1/94 Reclaimed Consumption Water Sewer Water Minimum $8.00 $9.55 $5.00 Additional 1,000 gallons $ 1.25 -$3.90 $3.18 Stormwater Management Fee Effective 10/1/94 I' Per Equivalent Drainage Unit (EDU) Without site mitigation $6.00 With site mitigation $2.92 Sources: Volusia County, Florida, County Data Profile 1990 -1991 Compiled by the Volusia County Business Development Corporation. L 0101- 0139451 105 J Table XIII City of Edgewater, Florida +� Water and Sewer Revenue Bond Coverage Y Fiscal year 2000 calculations: Gross revenues: Operating revenues $4,319,521 Connection fees 137,282 Net (4) Total $5,575,607 Operation and maintenance expenses: Operating Payments to Revenues Pledged Funds (1) and Renewal & Available Special Available Total Bond Bond Fiscal Gross Maintenance Replacement for All Assessment for All Service Service Year Revenues Expenses Funds Bonds Funds Bonds Requirement Coverage 2000 $5,575,607 $2,593,721 $267,969 $2,713,917 $1,117,381 $3,831,298 $2,878,463 1.33 1999 5,359,379 2,468,742 261,066 2,629,571 1,569,950 4,199,521 2,881,456 1.46 1998 5,221,320 2,325,604 252,675 2,643,041 2,014,536 4,657,577 2,877,834 1.62 1997 5,053,500 2,344,814 254,359 2,454,327 2,591,850 5,046,177 3,016,930 1.67 - Total Funds Total Bond (2) _ Fiscal Available Allowable Impact Service Bond Service Year for All Bonds Fees Total Requirement Coverage 2000 $3,831,298 $502,569 $4,333,867 $2,878,463 1.51 1999 4,199,521 503,978 4,703,499 2,881,456 1.63 1998 4,657,577 502,273 5,159,850 2,877,834 1.79 1997 5,046,177 504,807 5,550,984 3,016,930 1.84 Fiscal year 2000 calculations: Gross revenues: Operating revenues $4,319,521 Connection fees 137,282 Interest revenues (3) 1,118,804 $5,575,607 Operation and maintenance expenses: Total operating expenses $3,799,355 Depreciation (1,310,367) $2,488,988 Allowable impact fees: Bond service requirement $1,067,025 - Impact fee percentage 47.1 $ 502,569 Bond service requirements: Sr. Lien Jr. Lien Total Principal $ 325,000 $1,065,175 $1,390,175 Interest 742,025 746,263 1,488,288 $1,067,025 $1,811,438 $2,878,463 +r (1) Required coverage is 1.00 (2) Required coverage is 1.15 (3) Excludes interest earned on construction and impact fee funds (4) Includes cumulative collection of assessment principal and interest less amounts used for debt service payments less collections recognized as revenue in current year wl 106 0101 - 0139452 1 Other Reports 1 0101 -0139452 This page intentionally left blank. 0101- 0139452 r City of Edgewater, Florida Schedule of State Financial Assistance Year ended September 30, 2000 M an on State of Florida: Department of Environmental Protection: Recycling and Education Grant Department of Community Affairs: Disaster Relief Funding Agreement (98- RM- M9- 06 -74 -02 -130) Total State Financial Assistance Program Program Receipts Disbursements $6,677 $6,750 750 — $7,427 $6,750 0101- 0139452 109 im City of Edgewater, Florida Schedule of Expenditures of Federal Awards Year ended September 30, 2000 110 0101 - 0139452 Federal Pass - Through Actual Actual Actual CFDA Grantor's Program Program Matching Number Number Receipts Expenditures Expenditures rr U.S. Department of Justice (Direct) Public Safety Partnership and Community Policing Grants— _ Universal Hiring/FAST Grant 16.710 95 -CF -WX -1526 $ – $6,279 _ $5,137 110 0101 - 0139452 HERNST & YOUNG ■ Ernst & Young uP ■ Phone: (407) 872 -6600 Suite 1700 www.ey.com 390 North Orange Avenue Orlando, Florida 32801 -1671 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards The Honorable City Mayor, City Council, and City Manager City of Edgewater, Florida We have audited the general purpose financial statements of City of Edgewater, Florida (the City) as of and for the year ended September 30, 2000, and have issued our report thereon dated February 16, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. to Compliance As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. We did, however, note immaterial instances of noncompliance, which we have reported to management of the City in a separate letter dated February 16, 2001. as Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial as reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial to reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being 0101- 0139452 Ernst & Young LuP is a member of Ernst & Young International, Ltd. 111 J Internal Control Over Financial Reporting (continued)] audited may occur and not be detected within a timely period by employees in the normal course I � of performing their assigned functions. We noted no matters involving the internal control over �1 financial reporting and its operation that we consider to be material weaknesses. However, we did note one matter involving the internal control over financial reporting, which we have reported to management of the City in a separate letter dated February 16, 2001. This report is intended solely for the information and use of the City Council, management and federal awarding agencies and pass - through entities and is not intended to be and should not be used by anyone other than these specified parties. wit LLi' r u a February 16, 2001 112 0101. 0139452 ' L _ - ERNST & YOUNG ■ Ernst & Young uP ■ Phone: (407) 872 -6600 Suite 1700 www.ey.com 390 North Orange Avenue Orlando, Florida 32801 -1671 Management Letter Honorable Mayor, City Council and City Manager City of Edgewater, Florida In planning and performing our audit of the general purpose financial statements of the City of Edgewater, Florida (City) for the year ended September 30, 2000, we considered its internal control to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on internal control. The following findings and recommendations, which resulted from our consideration of internal control, are submitted to assist in improving procedures and controls. In addition, this report includes other disclosures required by Rules of the Auditor General, State of Florida. Status of Prior Audit Recommendations t E t I im Appropriate action was taken on all comments included in the prior year management letter. Current Year Findings and Recommendations Fixed Assets Based on our observations and inquiry of City personnel, it came to our attention that tangible personal property items purchased during the year were not marked or tagged as required by Chapter 10.400, Rules of the Auditor General. To ensure that the City's furniture and fixtures, and various other equipment are accounted for and safeguarded, all tangible personal property purchased by the City should be tagged or otherwise permanently marked pursuant to the guidance contained in Section 10.460, Rules of the Auditor General. The current property records should then be updated and modified to reflect the results of the annual physical inventory. Budgetary Compliance For the year ended September 30, 2000, expenditures exceeded legal appropriations in the General fund by $186,651. The overexpenditure resulted primarily from increased pension costs for police necessitated by statutory changes and excess capital outlay expenditures. Pursuant to Section 166.241(3), Florida Statutes, the budget must regulate expenditures of the municipality, and it is unlawful for any officer of a municipal government to expend or contract for expenditures in any fiscal year except in pursuance of budgeted appropriations. Accordingly, we recommend that the City review its budgetary monitoring process and make whatever changes are necessary to ensure that required budget amendments are identified timely and approved by the City Council to preclude future overexpenditures. 0002 - 0000700 Ernst & Young uP is a member of Ernst & Young International, Ltd. 113 Other Required Disclosures I Annual Financial Report I The City filed its annual financial report with the Department of Banking and Finance for the year ended September 30, 1999, as required by Section 218.32(1)(b), Florida Statutes. Based on our review of the financial information contained in that report, no material differences were found in comparing this information to that included in the City's audited financial statements. The Annual Financial Report for the year ended September 30, 2000 has not been prepared as of , this date. State of Financial Emergency Disclosure During the course of our audit, nothing came to our attention that would cause us to believe that the City was in a state of financial emergency as a consequence of conditions described in Section 218.503(1), Florida Statutes. Investment of Public Funds Nothing came to our attention that would cause us to believe that the City had not complied with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2000. Other ,r During the course of our audit, nothing came to our attention to indicate that the City failed to comply with applicable State Revolving Fund loan covenants. We wish to thank the City Manager, Finance Director, department heads and all of their staff for their assistance and cooperation during our recent audit. If we can be of any further assistance regarding these matters, please do not hesitate to call us. This report is intended solely for the information and use of the City Council, management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties. � f e"l UP February 16, 2001 to go 0 114 0002 - 0000700 U6 go W M in _M M so to ON Independent Auditors Required Disclosure in Accordance with Government Auditing Standards, 1994 Revision You have engaged us to conduct an audit of the City of Edgewater, Florida's general purpose financial statements for the year ended September 30, 2000, in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities for testing and reporting on internal controls and on compliance with applicable laws and regulations under those standards are described in the table below. In addition, the table contrasts our responsibilities in this engagement with other procedures that could be performed in other financial - related audits. Our Responsibility Regarding Service Our Responsibility Regarding Compliance with Laws and Provided Internal Controls Regulations Financial Statement Audit — Generally Accepted Auditing Standards (GAAS) We consider internal control to plan the nature, timing and extent of audit procedures for the purpose of expressing our opinion on the general purpose financial statements. We report, orally or in writing, any reportable conditions, including material weaknesses that we identify as a result of our audit procedures Our report does not provide assurance on the internal control structure. We design the audit to provide reasonable assurance of detecting irregularities that are material to the general purpose financial statements and illegal acts that have a direct and material effect on the general purpose financial statement amounts. Financial Statement Audit— In addition to the GAAS responsibilities, Government identify material weaknesses and Auditing reportable conditions, if any. Our reports Standards do not provide assurance on internal control. In addition to the GAAS detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a direct and material effect on the general purpose financial statements. We issue a written report on the results of these procedures; however, our report does not express an opinion on compliance. to r 0101 - 0139452 115 we are required to issue a written report on responsibilities, we design our audit our consideration of internal control and to provide reasonable assurance of rri Our Responsibility Regarding Service Our Responsibility Regarding Compliance with Laws and Provided Internal Controls Regulations OMB We consider internal control over federal We perform procedures for the Circular A- award program compliance. Our tests of purpose of expressing an opinion 133 controls include the controls over all major whether major federal programs federal programs (aggregate expenditures (aggregate expenditures of all major of all major programs that are to programs are to encompass at least encompass at least 25% of total federal 25% of total federal program program expenditures). We report on such expenditures) have been consideration and testing, and disclose administered in compliance with reportable conditions including material applicable laws and regulations. weaknesses we identify. Our report does not provide assurance on the internal control over compliance. Other We could be engaged to perform agreed- We could be engaged to perform Procedures upon procedures related to, or examine and agreed -upon procedures related to, report on, management's written assertion or examine and report on, as to the design and operating effectiveness management's written assertion of internal control. The engagement would regarding compliance. The be conducted in accordance with American engagement could be conducted at Institute of Certified Public Accountants the financial statement level, or ( AICPA) standards for attestation could result in a determination as to engagements. whether nonmajor federal financial assistance programs have been administered in accordance with applicable laws _and regulations. The engagement would be conducted in accordance with AICPA standards for attestation engagements. 116 0101 -0139452 ad ar r • we • r n t t d 11 1 1 f� I 0003. 0034081 City of Edgewater Financial Overview September 30, 2000 City of Edgewater Financial Analysis Selected Balance Sheet Items September 30, 2000 (In Thousands) Assets Cash and investments: Increase 2000 1999 (Decrease) Operating $18,642 $19,907 $(1,265) Restricted 6,921 6,701 220 Receivables: 45,886 48,544 (2,658) Current 864 874 (10) Restricted 16,685 17,711 (1,026) Property, plant and equipment —net 67,284 65,064 2,220 Liabilities Current liabilities 851 1,265 (414) Liabilities payable from restricted assets 2,588 2,513 75 Long -term liabilities 45,886 48,544 (2,658) Equity Contributed capital 25,747 25,766 (19) Investment in general fixed assets 23,097 20,902 2,195 Retained earnings 6,242 5,779 463 Fund balances 14,390 14,738 (348) 0003.0034081 1 10 up City of Edgewater VV Financial Analysis Per Capita Revenues General Fund Years ended September 30, 2000, 1999, 1998, 1997 and 1996 2000 1999 1998 1997 1996 Taxes $292 $292 $292 $285 $281 Licenses and permits 14 12 10 10 10 Intergovernmental 34 43 36 38 32 Charges for services 7 7 7 6 8 Fines and forfeitures 4 5 4 5 5 Miscellaneous 14 14 16 14 24 Total 365 $373 $365 $358 $360 Population 19,343 18,865 18,761 18,077 17,820 0105 -0185521 2 City of Edgewater Financial Analysis Per Capita Expenditures General Fund Years ended September 30, 2000, 1999, 1998, 1997 and 1996 0003 - 0034081 3 2000 1999 1998 1997 1996 Operating: General government $ 74 $ 63 $100 $ 87 $ 84 Public safety 215 174 161 165 155 Transportation 35 16 18 22 24 Culture /recreation 38 33 32 33 35 362 286 311 307 298 Capital outlay 116 73 22 18 12 Debt service 1 2 2 2 4 Totals $479 $361 $335 $327 $314 0003 - 0034081 3 4) C� Q� 7� i b N R3 • U � W h Z•1 Ct N Q� r C` 0 M 0 b � U t O� O �i U C. O e' y ai O U N l� M M O\ y N N U UO �; ri b4 M A fA- O U � M 00 U C. O e' y ai O U N l� M M O\ � N N U M .- 0 ri O � � N N U M .- 0 ri b4 M A fA- 0 U � M 00 N M O � � cq 0 U M M A � U � U A U U G� U U U > 0 0 o z H z 0 U Ct 4 --J Ct U a� a �o �o �o y c� w ct x 01 O 01 O O O r N rT 0 L 0 Q E E 0 m x 0 0 61% 60- 61% rn o a� o o� o r N a� W U ct •r ^ y ?�I U a� W.is ° o W� w W M �J m 0 =o - c a� - M x W EA O H Efl N L_ O Q c 0 M - Y U c 0 CO 0 o a c N cfl > N fd U) r M EA d � 03. C N E C co co E9 N > o <C N c N 0 0 0 0 0 0 0 0 0 0 0 O r M � � M M N N T � m 0 c� 3 ao w O U N N w O v O ;o a o U � C ZA w W. e o o e e o e ° o ° o ° o o r ii i 11r' b* Im low 1 a� ap w o U ct Ct Ct U a � � o 0 a N wi�' m 0 0 0 0 0 0 0 0 1 1 d J t 1 I Comparative Financial Analysis 1 I i L � I 1 0003- 0034081 City of Edgewater General Government Total Revenues (per capita dollars) $800 $748 $700 3' $600 $495 $500 $365 ❑ New Smyrna $400 ® Edgewater $300 ❑ South Daytona $200 $100 $0 Population: 18,977 19,343 13,573 0105.0185521 9 IW $600 $500 $400 $300 $200 L $100 L $0 0105A185521 City of Edgewater General Government Tax Revenues (per capita dollars) City of Edgewater Ad Valorem Taxable Assessed Value (per capita dollars) $90,000 8, $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 LI Millage rate 5.134 7,95 4.18 5 New Smyrna ® Edgewater ❑ South Davtona 01 05-0185521 11 City of Edgewater General Government Intergovernmental Revenues (per capita dollars) $160 $145 $140 $111 $120 $100 13 New Smyrna $80 {_ ® Edgewater $60 ;34 ❑ Sou Day tona $40 $20 $0 -: 0105 - 0185521 12 � I J �J 1� 1 0105 -0185521 City of Edgewater General Government Administrative Expenditures (per capita dollars) $160 $140 i $120 $100 $80 $60 $40 $20 $0 1 �J 1� 1 0105 -0185521 City of Edgewater General Government Administrative Expenditures (per capita dollars) City of Edgewater $350 $300 $250 $200 $150 $100 $50 $0 General Government Public Safety Expenditures (per capita dollars) $348 0105-0155521 1.4 City of Edgewater General Government Debt Service Expenditures (per capita dollars) $60 48 $50 $39 ❑ New Smyrna $40 ■ Edgewater $30 ❑ South Daytona $20 $10 $0 0105- 0185521 15 .. City of Edgewater �. General Government Days Fund Balance meets Total Expenditures a. $120 $100 $80 $60 $40 $20 $0 108 80 • New Smyrna • Edgewater ❑ South Davtona 0105-0185521 16 City of Edgewater Proprietary Fund Equity (per capita dollars) $600 $520 $500 $400 $323 ❑ New Smyrna $300 ® Edgewater $200 $1 1 El South Daytona MM $0 0105 - 0185521 17