FY 2000 CAFRCITY OF EDGEWATER, FLORIDA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
L FOR THE YEAR ENDED
L SEPTEMBER 30, 2000
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City of Edgewater, Florida
Comprehensive Annual Financial Report
Fiscal Year Ended September 30, 2000
Prepared by:
Finance Department
Michele Goins, CPA
Finance Director
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Introductory Section
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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
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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
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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
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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
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.............................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 ....................................
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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
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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
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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
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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.
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Certificate of Achievement for
Excellence in Financial Reporting
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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
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G coR P° ArM .a resident
CHICAGa
Executive Director
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Organization Chart
of
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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-
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Letter of Transmittal
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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0101- 0139452
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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
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16 0101 -0139452 1
t
L
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•
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�
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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
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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
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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
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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
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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
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24 0101- 0139452 e
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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
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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
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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
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4r
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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
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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
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0101 - 0139452
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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.
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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
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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
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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
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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.
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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
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1
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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
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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
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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
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Other Reports
1 0101 -0139452
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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
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ar
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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
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I Comparative Financial Analysis
1
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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
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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