FY 2002 CAFRm
CITY OF EDGEWATER,
FLORIDA
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR TIC YEAR ENDED
SEPTEMBER 30, 2002
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CITY OF EDGEWATER, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2002
Prepared by: Finance Department
Jon C. Williams, Acting Finance Director
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INTRODUCTORY SECTION
This section contains the following subsections:
Table of Contents
Letter of Transmittal
GFOA Certificate of Achievement
Organizational Chart
List of Principal Officials
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF EDGEWATER, FLORIDA
TABLE OF CONTENTS
September 30, 2002
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I. Introductory Section:
Table of Contents
Letter of Transmittal
iii -x
GFOA Certificate of Achievement
xi
Organizational Chart
xii
List of Principal Officials
xiii
II. Financial Section:
Independent Auditor's Report
1 -2
General Purpose Financial Statements (Combined Statements -
Overview):
Combined Balance Sheet - All Fund Types and Account Groups
3 -6
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - All Governmental Fund Types
7
Combined Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - All Governmental Fund Types
8 -10
Combined Statement of Revenues, Expenses and Changes in
Retained Earnings — Proprietary Fund Type
11
Combined Statement of Changes in Pension Fund Net Assets
12
Combined Statement of Cash Flows - All Proprietary Fund Types
13 -14
Notes to Financial Statements
15 -41
Combining, Individual Fund and Account Group Statements and
Schedules:
Special Revenue Funds:
Combining Balance Sheet
42
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances
43
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Budget and Actual
44 -47
Proprietary Fund Type:
Enterprise Funds:
Combining Balance Sheet
48 -49
Combining Statement of Revenues, Expenses and Changes in
Retained Earnings
50
Combining Statement of Cash Flows
51 -52
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF EDGEWATER, FLORIDA
TABLE OF CONTENTS - Continued
September 30, 2002
IV. Internal Control and Compliance Section:
Report on Compliance and on Internal Control Over Financial Reporting
Based on an Audit of Financial Statements Performed
In Accordance with Government Auditing Standards 72 -73
Management Letter 74.78
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II. Financial Section (Continued):
Fiduciary Fund Types:
Combining Statement of Pension Fund Net Assets
53
Combining Statement of Changes in Pension Fund Net Assets
54
General Fixed Assets Account Groups:
Schedule of General Fixed Assets by Function and Activity
55
III. Statistical Section:
General Governmental Expenditures by Function
56 -57
General Government Revenues by Source
58 -59
Property Tax Levies and Collections
60
Assessed and Estimated Actual Value of Taxable Property
61
Property Tax Rates - All Direct and Overlapping Governments
62
Special Assessment Collections
63
Computation of Overlapping Debt
64
Demographic Statistics
65
Property Value, Construction and Bank Deposits
66
Summary of Ten Largest Single Unit Water Users
67
Principal Taxpayers
68
Miscellaneous Statistical Data
69 -70
Water and Sewer Revenue Bond Coverage
71
IV. Internal Control and Compliance Section:
Report on Compliance and on Internal Control Over Financial Reporting
Based on an Audit of Financial Statements Performed
In Accordance with Government Auditing Standards 72 -73
Management Letter 74.78
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THE CITY OF EDGE WATER
POST OFFICE BOX 100- EDGEWATER, FLORIDA 32132 -0100
March 21, 2003
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, 2002, 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 aa��
City of Edgewater, Florida
Page 2 of 8
March 21, 2003
ECONOMIC CONDITION AND OUTLOOK
The City is located in southeast Volusia County, adjacent to I -95 and south of New Smyrna Beach, to Ariel
Road, 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 17,820 to 19,515, an 8.7% increase for the period or an average of 1.74% per year
over the last five years. The City's growth rate is increasing and the City is stimulating new industrial growth
with the recently completed ParkTowne Industrial Park. Coronado paint factory, residential home
construction, boat building (Boston Whaler, Edgewater Power Boats, Porta Products) and other light
manufacturing provide employment. NASA and related supporting enterprises at Cape Canaveral provide
further employment opportunities. Many residents commute to Daytona Beach, Deland and Orlando for
business employment.
The community currently has a 5.3% unemployment rate, below the state average of 5.4 %. During the past
five years, property taxable assessment values have increased 17.38 %. As the economy grows, we expect the
recent growth trends experienced by the City to increase. 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 is continuing its emphasis on result -
orientated initiatives. The City has also continued many partnerships between various economic development
agencies, local businesses and the City.
The City completed the purchase of approximately 162 acres from the Florida Inland Navigation District r
(FIND). This land is part of the 250 acres originally purchased by FIND for a containment site (Phase I of the
project) and a business /industrial park (Phase 11 of the project). Construction of Phase I of the project has been
completed. The design, engineering and construction of Phase II of the project, will consist of roadways, rt
drainage and utility improvements, and is expected to begin Fiscal year 2003 and to be completed by 2004.
The City is pleased to announce that purchase /sales agreements have been executed on all available parcels (30
acres or more) within Phase I of the industrial park. The sale of property will spur non - residential economic
growth for the City and stimulate additional economic benefits for the Park Avenue corridor. 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.
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Honorable Mayor and Members
Of the City Council
City of Edgewater, Florida
Page 3 of 8
March 21, 2003
MAJOR INITIATIVES
For the Year
A The City completed the initial phase of the $1.6 million Hawks Park Recreational Facility in November of
2000. The initial phase includes a public /private partnership with the YMCA to provide staffing for the
gymnasium. The City purchased adjacent land to the Recreational Facility, which is used to house the Park
r and Recreation offices as well as a historical museum. The 26 -acre complex is designed, permitted and
planned for additional softball fields, swimming pool, racquetball courts, general - purpose athletic fields, and
tennis facilities. Construction of the swimming pool has been completed and the City is currently constructing
so softball fields utilizing FERDAP grants. The City was recently awarded a $100,000 grant from Volusia
County for improvements to the Hawks Park Facility.
As a result of the demand for residential growth, the Florida Shores subdivision continues to grow and is near
fully developed. Construction of single - family homes remains strong within Florida Shores and the
surrounding vicinity. San Remo, our newest residential community, has seen moderate construction and sales.
The outlook for the future looks positive for continued single - family residential growth. Two additional
single - family communities, Majestic Oaks and Mariners Gate are entering the final stages of
permitting/platting. Construction and sales of single - family homes shall commence during fiscal year 2003.
The City issued approximately 226 new residential building permits during 2002.
The City continues the process of relocating utility lines in conjunction with the widening of State Road 442
by the Florida Department of Transportation. Water, sewer and reclaimed infrastructure was expanded and
extended to many industrial areas in the City during the year. The City completed water distribution and
wastewater collection improvements in the ParkTowne Center project as well as a proposed water distribution
system on Hazelwood River Road to serve approximately forty-six parcels.
For the Future
The City continues to plan for the redevelopment of Kennedy Park east of Riverside Drive /City Hall complex.
This plan will include an expanded landscaped site that will benefit boaters and the sport fishing public of the
area. The redevelopment plan should be completed by 2005.
The City is also in the process of establishing and expanding a variety of programs through the Police
Department such as traffic abatement, mentoring, neighborhood watch, expansion of the Citizens Assisting
Police (CAP) program as well as increasing the focus of activities with local youth and school related issues.
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 violent crime index has decreased for the second year in a row by 9.48 %.
The Fire/Rescue Department continues to provide superior ALS Emergency Medical Services (EMS) with
2098 request for assistance last year. The City achieved its goal of an average response time of 4 minutes or
less to the majority of the incidents. Most of the responses were emergency medical treatment request with
many requiring the need for Advanced Life Support Emergency Medical. Treatment. In addition to the
emergency and non - emergency incidents, Fire/Rescue personnel continued to provide various other services
Honorable Mayor and Members
Of the City Council
City of Edgewater, Florida
Page 4 of 8
March 21, 2003
that include blood pressure screenings, CPR/First Aid training, disaster preparedness, Community Emergency
Response Team (CERT) training and immunizations to City employees and the community. Additionally, the
Department assisted with the initiation of the first Regional Communication Center (partnering with Port
Orange and New Smyrna Beach) within Volusia County. The regional communication concept enhances
partnerships with neighboring communities and provides for the dispatch of the closest emergency response
unit. It also allows for the cost effective sharing of other resources and opportunities for enhanced joint multi -
jurisdictional and multi - company trainings. The computer program associated with the system will give the
dispatchers and emergency responders critical information for facilities within our area. We also continue to
research future programs that will enhance the level of services to City residents as well as the opportunity to
secure 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 assisted in the completion of the new
department offices and the first City Historical Museum located at the Hawks Park Recreational Complex.
FINANCIAL INFORMATION
City management is responsible for establishing and maintaining an internal control structure 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 structure 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; (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, the City
continues to meet its responsibility for sound fiscal management.
General Government Functions
The following schedule presents a summary of General Fund revenues for the fiscal year ended September 30, y
2002, and percent of the total amount and amount of increases and decreases in relation to prior year revenues.
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L Honorable Mayor and Members
Of the City Council
City of Edgewater, Florida
Page 5 of 8
March 21, 2003
GENERAL REVENUES BY SOURCE
GENERAL FUND
Increase
Percent (Decrease)
Revenue Source Amount of Total From 2001
Taxes*
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Investment Income
Miscellaneous revenues
Totals
$5,130,474
61.91%
$(1,059,087)
326,793
3.94%
28,930
2,566,811
30.97%
1,183,856
57,137
.69%
(148,845)
69,297
.84%
(46,311)
13,610
.16%
13,610
123,222
1.49%
(167,249)
986,671,
10.16%
37,226
$8,287,344
*Tax Revenue is comparable to prior year; the apparent decrease is due to a reclassification of Revenue source
to Intergovernmental.
Revenues for the General Fund totaled $8,287,344 (which excludes $918,000 in operating transfers), a
decrease of $195,096. The decrease is due to reduced Interest Earnings of $76,077. This item is combined
with various increases and decreases in other revenues of $ 119,019.
The following schedule presents a summary of General Fund expenditures for the fiscal year ended September
30, 2002, 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 .
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Totals
$9,709,855
100% $ (195,096)
100% $ 114,284
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Increase
Percent
(Decrease)
Function
Amount
of Total
From 2001
General Government
$2,133,671
21.97%
$ 500,647
Public Safety
5,353,367
55.13%
957,500
Transportation
986,671,
10.16%
37,226
Culture/Recreation
1,186,547
12.22%
260,560
Capital Outlay
0
.00 %
(1,665,678)
Debt Service
49,599
.51%
24,029
Totals
$9,709,855
100% $ (195,096)
100% $ 114,284
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Honorable Mayor and Members
Of the City Council
City of Edgewater, Florida
Page 6 of 8
March 21, 2003
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Expenditures for the General Fund totaled $9,709,855 (which excludes paving and drainage related transfers of
$353,429 to the Debt Service Fund), an increase of $114,284 over the previous year's expenditures. The net
increase in expenditures is attributed to several factors: insurance /workers compensation premiums and
pension funding increase. at
Government Fund Balances
The General Fund's reserved/unreserved fund balance of $748,209 is lower than last year by $190,391. The
decrease is primarily the result of capital outlay expenditures being budgeted from fund balance instead of
increasing the City's debt. The undesignated fund balance is $634,286, which increased $1,308 from last
year's $632,978.
Cash Management
Residual cash held during the year was invested primarily with the State Board of Administration.
Debt Administration
The City's general long -term debt totaled $14,253,285 at September 30, 2002, an increase of $6,925,885. The
debt consisted of expected employee benefits payable in future -periods, capital road and drainage improvement
bonds (Series 1995A and 1995B). Note payable to Volusia County for the 800 MHz Radio System, note
payable to FIND for the purchase of ParkTowne Industrial Center and a Revenue note payable to Bank of
America for reclaimed water improvement, Airpark Road realignment, ParkTowne Industrial Center Phase II
improvement and other minor capital improvement projects.
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, Florida's sovereign immunity statutes protect the City. 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.
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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 W
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 yearend, the City served almost 9,001 water customers,
8,457 sewer customers, and 2,526 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.
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on Honorable Mayor and Members
Of the City Council
City of Edgewater, Florida
Page 7 of 8
to March 21, 2003
+r 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, revenues of $83,309 were derived from State of Florida
y contributions; net change in fair value of plan assets was $159,157, employees' contributions of $76,069 and
City contributions of $329,225. At September 30, 2002, the fund balance was $4,031,246.
to 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 $439,160 to the general employees' plan and the net change in fair value of plan assets was
$587,488. At September 30, 2002, the fund balance was $8,365,438.
The Firefighters' Pension Fund was created by Ordinance under the provisions of Chapter 175, Florida
Statutes. The Firefighters' Pension Board administers this plan. During the year, revenues were derived from
so State of Florida contributions of $59,783 net change in fair value of plan assets was (89,680), employees
contributions of $50,922 and City contributions of $140,163. At September 30, 2002, the fund balance was
$1,382,306.
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, 2002, the general fixed
assets of the City amounted to $29,201,566. 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.
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Independent Audit
State Statute requires an annual audit by independent certified public accountants. The accounting firm of
McDirmit Davis Puckett 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, 2001. 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 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.
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Honorable Mayor and Members
Of the City Council
City of Edgewater, Florida
Page 8 of 8
March 21, 2003
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.
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
Jon C. Williams
City Manager
Acting Finance Director
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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, 2001
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.
�a E
Opp
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WO STA S
AND
CAMU
President
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Executive Director
A
CITY OF ED GE WA TER
ORGANIZATIONAL CHART
CITIZENS OF EDGEWATER
MAYOR AND CITY COUNCIL
ADVISORYBOARDS I I CITYMANAGER I I CITYATTORNEY I I CITYCLERK
FINANCE PARKS & RECREATION/ ENVIRONMENTAL
MAINTENANCE SERVICES
PLANNING /ZONING
RECREATION UTILITIES
POLICE MAINTENANCE
J: EATER
FIRE/RESCUE J WASTEWATER
CIVIL DEFENSE
FIELD
BUILDING
PUBLIC WORKS
PERSONNEL
STORMWATER
REFUSE
STREET
xi i
CITY OF EDGEWATER, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 2002
MAYOR
Donald A. Schmidt
CITY COUNCIL
James P. Brown — District 1
Dennis A. Vincenzi — District 2
Harriet E. Rhodes — District 3
Judith R. Lichter — District 4
CITY MANAGER
Kenneth Hooper
CITY ATTORNEY
Foley and Lardner
CITY CLERK
Susan J. Wadsworth
CITY AUDITOR
McDirmit Davis Puckett
& Company, LLC
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FINANCIAL SECTION
This section contains the following subsections:
Independent Auditor's Report
General Purpose Financial Statements
Combining Statements
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an 71,A MCDIRMIT DAMS PUCKETT
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INDEPENDENT AUDITOR'S REPORT
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Honorable Mayor and City Council
City of Edgewater, Florida
We have audited the accompanying general purpose financial statements of the City of
Edgewater, Florida, as of and for the year ended September 30, 2002, as listed in the table of
contents. These general purpose financial statements are the responsibility of the City's
aw management. O ur responsibility i s to e xpress a n o pinion o n t hese general purpose financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America a nd t he standards a pplicable t o f inancial a udits contained i n G overnment
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 general
purpose financial statements. An audit also includes assessing the accounting principles used
4 and significant estimates made by management, as well as evaluating the overall general
purpose financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
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,
2002, and the results of its operations and the cash flows of its proprietary fund types and the
changes in pension fund net assets for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated
February 25, 2003 on our consideration of the City of Edgewater, Florida's internal control over
financial reporting and 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
L considering the results of our audit.
MCDIRMIT DAVIS PUCKETT & COMPANY, LLC
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32801
TELEPHONE 407 -843 -5406 • FAx 407 -649 -9339 • EMAIL: INFO @MDPCPA.COM
MEMBERS: PRIVATE. COMPANIES PRACTICE SECTION • AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
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Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements, listed in the accompanying table of contents are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of
the City of Edgewater, Florida. Such information has been subjected to the auditing procedures
applied i n t he a udit o f t he g eneral p urpose f inancial s tatements a nd, in our opinion, is fairly
presented in all material respects in relation to the general purpose financial statements taken
as a whole.
The information listed in the Statistical Section is presented for purposes of additional analysis
and is not a required part of the general purpose financial statements. Such information has
not been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, accordingly, we express no opinion on it.
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McDIRMIT DAVIS PUCKETT & COMPANY, LLC
February 25, 2003
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GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
W These basic financial statements provide a summary overview of the
financial position of all funds and account groups as well as the operating
results of all funds. They also serve as an introduction to the detailed
statements that follow in subsequent sections.
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CITY OF EDGEWATER, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 2002
The accompanying Notes to Financial Statements are an integral part of this statement.
3 .„
Governmental Fund Types
Special
Debt
Capital
General
Revenue
Service
Projects
Assets and Other Debits
Assets:
Cash and cash equivalents
$ 827,485
$ 287,837
$ 493,011
$ 1,641,267
Investments
-
-
-
-
Receivables:
Accounts, net
-
-
-
-
Special assessments
17,207
-
-
-
Interest
-
-
-
-
Investment in joint venture
-
-
-
-
Due from other governments
871,940
-
-
-
Due from other funds
1,209
-
-
-
Inventories
12,664
-
-
-
Prepaid costs
4,312
-
-
-
Restricted assets:
Cash and cash equivalents
-
-
-
-
Investments
-
-
-
-
Special assessment receivables
-
-
3,540,535
-
Property and equipment
-
-
-
-
Accumulated depreciation
-
-
-
-
Construction in progress
-
-
-
-
Unamortized debt issuance costs
-
-
-
-°
Special assessment receivables -
long -term
-
-
-
-
Other debits:
Amount available in debt service fund
-
-
-
-
Amount to be provided for retirement
of general long -term debt
-
-
-
-
Total assets
$ 1,734,817
$ 287,837
$ 4,033,546
$ 1,641,267
The accompanying Notes to Financial Statements are an integral part of this statement.
3 .„
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10,021,445 - - - 10,021,445
493,011 493,011
- - 13,760,274 13,760,274
$ 70,444,166 $ 13,780,199 $ 29,537,933 $ 14,253,285 $ 135,713,050
(Continued)
i
Account Groups
Proprietary
Fiduciary
General General
Totals
Fund Type
Fund Type
Fixed Long -Term
(Memorandum
Enterprise
Trust
Assets Debt
Only)
$ 2,635,659 $
4,805
$ - $ -
$ 5,890,064
-
13,775,385
- -
13,775,385
735,894
-
- -
735,894
-
-
- -
17,207
-
9
- -
9
-
-
336,367 -
336,367
-
-
- -
871,940
-
-
- -
1,209
52,681
-
- -
65,345
4,088
-
- -
8,400
7,324,747
-
- -
7,324,747
1,115,568
-
- -
1,115,568
1,507,911
-
- -
5,048,446
58,568,968
-
23,655,322 -
82,224,290
(14,970,985)
-
- -
(14,970,985)
3,100,793
-
5,546,244 -
8,647,037
347,397
-
- -
347,397
10,021,445 - - - 10,021,445
493,011 493,011
- - 13,760,274 13,760,274
$ 70,444,166 $ 13,780,199 $ 29,537,933 $ 14,253,285 $ 135,713,050
(Continued)
i
CITY OF EDGEWATER, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 2002
Liabilities, equity and other credits
Liabilities:
Accounts payable
Retainage payable
Accrued liabilities
Due to other funds
Deferred revenue
Refundable deposits
Notes payable - current
Payable from restricted assets:
Customer deposits
Accrued interest payable
Revenue bonds payable - current
State revolving loan payable - current
Accrued compensated absences
Notes payable - long -term
Revenue bonds payable - net
State revolving loan payable
Total liabilities
Fund equity and other credits:
Contributed capital
Investment in general fixed assets
Retained earnings:
Reserved
Unreserved
Fund balances:
Reserved
Unreserved:
Designated
Undesignated
Total fund equity and other credits
Total liabilities, fund equity and
other credits
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
$ 623,057 $ - $ - $
273,171 - - -
39,469 - -
48,506 - 3,540,535
2,585 - -
986,788 - 3,540,535 -
101,459 - 493,011 -
12,284 287,837 - 1,641,267
634,286 - -
748,029 287,837 493,011 1,641,267
$ 1,734,817 $ 287,837 $ 4,033,546 $ 1,641,267
The accompanying Notes to Financial Statements are an integral part of this statement.
5
Proprietary
Fiduciary
General
General
Totals
Fund Type
Fund Type
Fixed
Long -Term
(Memorandum
Enterprise
Trust
Assets
Debt
Only)
$ 375,571
$ -
$ -
$ -
$ 998,628
100,505
-
-
-
373,676
117,163
-
-
-
156,632
-
1,209
-
-
1,209
-
-
-
-
3,589,041
-
-
-
-
2,585
769,165
-
-
-
769,165
523,086
-
-
-
523,086
423,132
-
-
-
423,132
385,000
-
-
-
385,000
1,187,004
-
-
-
1,187,004
232,004
-
-
839,520
1,071,524
6,808,466
-
-
7,540,032
14,348,498
11,809,037
-
-
5,873,733
17,682,770
15,804,864
-
-
-
15,804,864
38,534,997
1,209
-
14,253,285
57,316,814
24,222,027
-
-
-
24,222,027
-
-
29,537,933
-
29,537,933
2,943,278
-
-
-
2,943,278
4,743,864
-
-
-
4,743,864
-
13,778,990
-
-
14,373,460
-
-
-
-
1,941,388
-
-
-
-
634,286
31,909,169
13,778,990
29,537,933
-
78,396,236
$ 70,444,166
$ 13,780,199
$ 29,537,933
$ 14,253,285
$ 135,713,050
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CITY OF EDGEWATER, FLORIDA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
For The Year Ended September 30, 2002
"
Governmental Fund Types
Totals
Special
Debt
Capital
(Memorandum
General
Revenue
Service
Projects
Only)
Revenues:
Taxes
$ 5,130,474
$
$
$
$ 5,130,474
Licenses and permits
326,793
_
326,793
Intergovernmental revenues
2
2,566,811
Charges for services
57,137
57,137
Fines and forfeitures
69,297
8,211
77,508
Impact fees /special assessments
-
210,981
367,017
577,998
'
Investment income
13,610
4,668
268,294
6,478
293,050
Miscellaneous revenues
123,222
-
-
-
123,222
Total revenues
8,287,344
223,860
635,311
6,478
9,152,993
Expenditures:
Current:
General government
2,133,671
-
-
-
2,133,671
Public safety
5,353,367
9,453
5,362,820
Transportation /public works
986,671
-
986,671
Culture and recreation
1,186,547
149,201
-
1,335,748
'
Capital outlay
-
-
-
4,967,147
4,967,147
Debt service:
Principal retirement
22,012
575,367
-
597,379
Interest and fiscal charges
27,587
338,003
-
365,590
Total expenditures
9,709,855
158,654
913,370
4,967,147
15,749,026
Excess (Deficiency) of Revenues
Over Expenditures
(1,422,511)
65,206
(278,059)
(4,960,669)
(6,596,033)
Other Financing Sources (Uses):
Loan proceeds
Operating transfers in
890,000
918,000
-
-
353,429
6,601,936
7,491,936
1,271,429
Operating transfers out
(353,429)
(353,429)
Net other financing sources (uses)
1,454,571
353,429
6,601,936
8,409,936
'
Excess of Revenues and
Other Sources Over
Expenditures and Other Uses
32,060
65,206
75,370
1,641,267
1,813,903
i
Fund Balances - Beginning of Year
938,600
-
417,641
-
1,356,241
Residual Equity Transfers In (Out)
(222,631)
222,631
-
-
-
l
Fund Balances - End of Year
$ 748,029
$ 287,837
$ 493,011
$1,641,267
$ 3,170,144
� I
' The accompanying Notes to Financial Statements are an integral part of this statement.
7
CITY OF EDGEWATER, FLORIDA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
For The Year Ended September 30, 2002
General Fund
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Impact fees /special assessments
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Culture and recreation
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Loan proceeds
Operating transfers in
Operating transfers out
Net other financing sources (uses)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses
Fund Balances - Beginning of Year
Residual Equity Transfers In (Out)
Fund Balances -End of Year
5,164,989
2,133,671
Variance
5,391,657
5,353,367
Favorable
Budget
Actual
(Unfavorable)
$ 5,026,760
$ 5,130,474
$ 103,714
316,500
326,793
10,293
5,236,973
2,566,811
(2,670,162)
70,700
57,137
(13,563)
92,600
69,297
(23,303)
200,000
13,610
(186,390)
112,350
123,222
10,872
11,055,883
8,287,344
(2,768,539)
5,164,989
2,133,671
3,031,318
5,391,657
5,353,367
38,290
951,775
986,671
(34,896)
1,285,480
1,186,547
98,933
22,325
22,012
313
26,848
27,587
(739)
12,843,074
9,709,855
3,133,645
(1,787,191)
(1,422,511)
364,680
890,000 890,000
918,000 918,000
(353,429) (353,429)
1,454,571 1,454,571 -
(332,620) 32,060 364,680
938,600 938,600
(222,631) (222,631) -
$ 383,349 $ 748,029 $ 364,680
ow
I �
The accompanying Notes to Financial Statements are an integral part of this statement.
8 1
Special Revenue Funds
9,453
Debt Service Fund
Variance
145,136
149,201
Variance
-
-
Favorable
-
-
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
339,197
338,003
1,194
153,800
158,654
(4,854)
916,610
913,370
3,240
6,728
8,211
1,483
-
(278,059)
501
200,250
210,981
10,731
392,015
367,017
(24,998)
2,830
4,668
1,838
246,035
268,294
22,259
209,808
223,860
14,052
638,050
635,311
(2,739)
8,664
9,453
(789)
-
145,136
149,201
(4,065)
-
-
-
-
-
577,413
575,367
2,046
-
-
-
339,197
338,003
1,194
153,800
158,654
(4,854)
916,610
913,370
3,240
56,008
65,206
9,198
(278,560)
(278,059)
501
353,429 353,429
353,429 353,429
56,008 65,206 9,198 74,869 75,370 501
- - - 417,641 417,641 -
222,631 222,631 - - -
$ 278,639 $ 287,837 $ 9,198 $ 492,510 $ 493,011 $ 501
(Continued)
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CITY OF EDGEWATER, FLORIDA
COMBINED STATEMENT OF REVENUE EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES- (CONTINUED)
For The Year Ended September 30, 2002
Capital Projects Fund
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Impact fees /special assessments
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Culture and recreation
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Loan proceeds
Operating transfers in
Operating transfers out
Net other financing sources (uses)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses
Fund Balances - Beginning of Year
Residual Equity Transfers In (Out)
Fund Balances -End of Year
Variance
Favorable
Budget Actual (Unfavorable)
6,478 6,478
6,478 6,478
4,967,147 (4,967,147)
(4,960,669) (4,960,669)
1,650,000 6,601,936 4,951,936
1,650,000 6,601,936 4,951,936
1,650,000 1,641,267 (8,733)
The accompanying Notes to Financial Statements are an integral part of this statement.
10
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CITY OF EDGEWATER, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
For The Year Ended September 30, 2002
Operating Revenues:
User charges
' Operating Expenses:
Personal services
Materials and supplies
Contractual services
Depreciation and amortization
Total operating expenses
Operating income (loss)
Nonoperating Revenue (Expenses):
Capital contributions
Investment income
Interest expense
Gain (loss) on disposal of property
Total nonoperating revenue
Income before operating transfers
Operating Transfers:
Operating transfers out
Net operating transfers
Net income (loss)
Add back depreciation expense on
contributed assets
Retained Earnings -
Beginning of Year
End of Year
Enterprise
$ 6,709,274
2,818,088
1,192,201
695,503
1,633,183
6,338,975
370,299
1,313,962
751,360
(1,551,908)
68
513,482
883.781
(918,000)
(918,000)
(34,219)
756,532
6,964,829
$ 7,687,142
The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF EDGEWATER, FLORIDA
COMBINED STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS
For The Year Ended September 30, 2002
Additions:
Contributions:
Employer
Plan members
State
Total contributions
Investment income:
Investment income
Less: investment expense
Net investment income (loss)
Total additions
Deductions:
Benefits /distributions
Administrative expenses
Total deductions
Net Increase
Net Assets Held in Trust for Pension Benefits:
Beginning of Year
End of Year
$ 908,548
189,945
143,092
1,241,585
681,884
(24,919)
656,965
1,898,550
273,409
30,345
303,754
1,594,796
12,184,194
$ 13,778,990
The accompanying Notes to Financial Statements are an integral part of this statement.
12
CITY OF EDCEWATER, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
For The Year Ended September 30, 2002
Enterprise
Cash Flows from Operating Activities:
Receipts from customers $ 6,725,133
Payments to suppliers (1,623,825)
Payments to employees (2,784,569) „
Net cash provided by operating activities 2,316,739
Cash Flows from Non - Capital Financing Activities:
Operating transfers out
(918,000)
Net cash used in non - capital
financing activities
(918,000) �.
Cash Flows from Capital and Related Financing Activities:
Proceeds from note payable
5,140,000
Payments on bonds and notes payable
(1,752,030)
Proceeds from sale of capital assets
3,137
Acquisition of capital assets
(2,800,615)
Interest paid on bonds and notes
(1,558,701)
Impact fees received
1,462,302
Net cash provided by capital and
related financing activities
494,093
Cash Flows from Investing Activities:
Purchase of investments
(1,115,568)
Interest received
751,360
Net cash used in investing activities
(364,208)
Net Increase in Cash and Cash Equivalents
1,528,624
Cash and Cash Equivalents at Beginning of Year
8,431,782
Cash and Cash Equivalents at End of Year $ 9,960,406
Classified As:
Current assets $ 2,635,659
Restricted assets 7,324,747
Total $ 9,960,406
The accompanying Notes to Financial Statements are an integral part of this statement.
13
Enterprise
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating income
$ 370,299
Adjustments Not Affecting Cash:
Depreciation and amortization
1,633,183
Change in Assets and Liabilities:
Increase in accounts receivable
(27,358)
Increase in prepaids
(300)
Decrease in inventory
1,341
Increase in accounts payable
162,333
Decrease in accrued expenses
33,519
Decrease in contracts payable
100,505
Increase in accrued annual leave
2,345
Increase in customer deposits
40,872
Total adjustments
1,946,440
Net Cash Provided by Operating Activities $ 2,316,739
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NOTES TO FINANCIAL STATEMENTS
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an CITY OF EDGEWATER, FLORIDA
r
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
W
Note 1 — Summary of 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 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 accounting principles generally
accepted in the United States of America as applicable to governments. The following is a
summary of the significant policies.
Reporting Entity — Accounting principles generally accepted in the United Sates of
America require that these financial statements present the City (the primary government)
and its component units. Component units generally are legally separate entities which a
primary government is financially accountable. Financial accountability ordinarily involves
meeting both of the following criteria: the primary government is accountable for the
potential component unit (i.e., the primary government appoints the voting majority of its
board) and the primary government is able to impose its will upon the potential component
unit, or there is a possibility that the potential component unit may provide specific financial
benefits or impose specific financial burdens on the primary government. In applying the
above criteria management has determined that there are no component units to be
included within the reporting entity.
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 are to be spent and the means by which spending activities are
controlled.
Accounts groups are a reporting device to account for certain assets and liabilities of the
governmental funds not recorded directly in those funds. The purposes of the City's various
funds and account groups are as follows:
1 15
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 1 — Summary of Significant Accounting Policies (Continued):
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.
Special Revenue Funds - To account for revenue sources that are legally restricted to
expenditure for specific purposes (not including major capital projects).
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.
Capital Projects Funds - To account for the acquisition of fixed assets or construction
of major capital projects not being financed by proprietary funds.
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.
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.
16
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CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 1 — Summary of Significant Accounting Policies (Continued):
Measurement Focus and Basis of Accounting - Governmental funds are used to account
for the government's general government activities. Governmental fund types use the flow
of current financial resources measurement focus and the modified accrual basis of
accounting. Under the modified accrual basis of accounting revenues are recognized when
susceptible to accrual (i.e., when they are "measurable and available "). "Measurable"
means the amount of the transaction can be determined and "available" means collectible
within the current period or soon enough thereafter to pay liabilities of the current period.
The government considers all revenues available if they are collected within 60 days after
year end. Expenditures are recorded when the related fund liability is incurred, except for
unmatured interest on general long -term debt which is recognized when due, and certain
compensated absences and claims and judgments which are recognized when the
obligations are expected to be liquidated with expendable available financial resources.
Property taxes, franchise taxes, licenses, interest and special assessments are susceptible
to accrual. Sale taxes collected and held by the state at year end on behalf of the
government are also recognized as revenue. Other receipts and taxes become measurable
and available when cash is received by the government and are recognized as revenue at
that time.
Entitlements are shared revenues are recorded at the time of receipt or earlier if the
susceptible to accrual criteria are met. Expenditure driven grants are recognized as
revenue when the qualifying expenditures have been incurred and all other grant
requirements have been met.
Proprietary funds are accounted for on the flow of economic resources measurement focus
and use the accrual basis of accounting. Under this method, revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred. The government
applies all applicable FASB pronouncements issued prior to November 30, 1989 in
accounting and reporting for its proprietary operations.
Pension trust funds are accounted for in essentially the same manner as the proprietary
funds.
Cash and Cash Equivalents - For purposes of cash flows, cash includes amounts in
demand deposits as well as short -term investments with a maturity date within three months
of the date acquired by the government.
Accounts Receivable From Other Governments - Those amounts that represent a claim
against another government, and are measurable, have been accrued.
1 17
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 1 — Summary of Significant Accounting Policies (Continued):
Inventories - Inventories are stated at cost, using the FIFO method. Inventories are
maintained by the General Fund and the Enterprise Funds. The City uses the consumption
method in expensing governmental fund inventories.
r
Restricted Assets - The restricted assets shown on the Enterprise Fund balance sheet
represent those assets of the Enterprise Fund which are earmarked for specific purposes
and cannot be used for paying general obligations of the Fund. The corresponding liability
designated as payable for restricted assets represents the current maturities for which the
restricted assets are accumulated.
Receivables and Payables - Transactions between funds that are representative of
lending /borrowing arrangements outstanding at the end of the fiscal year are referred to as
either "interfund receivables /payabies" (i.e., the current portion of interfund loans) or
"advances to /from other funds" (i.e., the non - current portion of interfund loans). All other
outstanding balances between funds are reported as "due to /from other funds."
All trade and property tax receivables are shown net of an allowance for uncollectibles.
Property taxes are levied on October 1 of each year, on property values assessed on
January 1 of the same year, are due and payable on March 31 of the following year.
Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in
the month of December, 2% in the month of January and 1% in the month of February.
Taxes paid in March are not subject to discount. Delinquent taxes on real property bear
interest at 18% per year. All unpaid taxes are delinquent on April 1 following the year in
which they are assessed. On or about May 31 following the tax year, certificates are sold
for all delinquent taxes on real property. Application for a tax deed on any unredeemed tax
certificates may be made to the certificate holder after a period of two years. Unsold
certificates are held by the County.
Water, sewer and refuse operating revenues are generally recognized on the basis of cycle
billings rendered monthly. The unbilled portion 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.
iull
1
1
1
1
I
1
1
I CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 1 — Summary of Significant Accounting Policies (Continued):
Investments - Investments in all fund types are stated at fair value, which is the amount at
which an investment could be exchanged in a current transaction between willing parties,
other than in a forced liquidation sale. Fair value is based on quoted market prices. Income
from investments held by the individual funds is recorded in the respective fund as it is
earned. Changes in the fair value of investments is recognized as revenue and included in
investment income.
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 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:
Water system
Sewer system
Refuse collection facilities
Machinery and equipment
Stormwater system
Assets
Years
25 -65 years
6 -65 years
10 years
3 -25 years
6 -65 years
IF
r
C
Amortization of Bond Discounts and Issuance Costs - Bond discounts and issuance
costs are being amortized on a straight -line basis, which approximate the interest method,
over the life of the bonds. Amortization of bond issuance costs amounted to $41,316 for the
2002 fiscal year. Amortization of bond discount, included in interest expense, amounted to
$11,545 for 2002 fiscal year.
19
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 1 - Summary of Significant Accounting Policies (Continued):
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.
Long -term Obligations - Long -term debt is recognized as a liability of a governmental fund
when due. For other long -term obligations, only that portion expected to be financed from
expendable available financial resources is reported as a fund liability of a governmental
fund. The remaining portion of such obligations is reported in the general long -term debt
account group. Long -term liabilities expected to be financed from proprietary fund
operations are accounted for in those funds.
Fund Equity
Proprietary Funds - Contributed capital consists of funds from developers, and federal
and state (capital) grants through September 30, 2000. There have been no additions
to contributed capital since then because the City was required to implement GASB
Statement No. 33. This statement requires governmental entities that use proprietary
fund accounting to recognize capital contributions and impact fees received as
revenues, not contributed capital. However, governments are not allowed to restate
contributed capital arising from periods prior to implementation of Statement No. 33 until
implementation of GASB Statement No. 34. Grants received for operating assistance
are recorded as non - operating revenue.
Reservations of retained earnings are created by increases in assets restricted for debt
service, renewal and replacement, and other contractual obligations. These increases -
result from earnings on restricted assets and other intrafund transfers to (from)
restricted accounts. Earnings on restricted assets are included in net income of the
Proprietary Funds. Reserves are not established for bond proceeds deposited into
construction accounts.
Governmental Funds - Reserves of the governmental funds are limited to the portions -�
of fund balance, which are either not subsequently appropriated for expenditures or
legally segregated for specific use.
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.
20
- CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 2 — Stewardship, Compliance and Accountability:
Budgetary Information -
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
ordinance.
(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, Special Revenue Funds, Debt
Service Funds and the Capital Projects Fund 'on a basis consistent with generally
accepted accounting principles. Budgets are also adopted for the enterprise
funds: however, these data are not presented under generally accepted
accounting principles.
(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. Budgeted amounts presented in the
accompanying financial statements have been adjusted for legally authorized
revisions.
Excess of Expenditures Over Appropriations — Actual expenditures exceeded
appropriations in the following funds: Special Law Enforcement Trust Special Revenue
Fund, $789; Recreation Impact Fees Special Revenue Fund, $4065; and the Capital
Projects Fund $4,967,147. All of the above funds had revenue and funds available to cover
the expenditures.
21
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 3 — 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 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.
Deposits - Florida Statutes require depositories of public funds to provide collateral each
month at 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, 2002, the carrying amount of
the City's deposits and petty cash was $1,326,925 and the bank balance was $1,335,953.
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.
Investments - The City's investment policies are governed by State Statute and City
ordinance. Authorized investments are:
(a) The Local Government Surplus Funds Trust (SBA)
(b) SEC registered money market funds
(c) Interest - bearing time deposits or savings accounts
(d) Direct obligations of the U.S. Treasury
(e) Federal agencies and instrumentalities
(f) Securities of, or other interests in, any open -end or closed -end management -type
investment company or investment trust registered under the Investment Company
Act of 1940
(g) Other investments authorized by ordinance
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. Investments consist of debt and equity mutual funds, all of
which are allowed by the policy.
22
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 3 — Deposits and Investments (Continued):
Investments (Continued) - Most of the City's investments beside pension funds are
invested in the SBA, the Local Government Surplus Funds Trust Fund investment pool (a
2a -7 like external investment pool). 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 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.
The following schedule categorizes the level of risk assumed by the City relating to
investments held.
Category 1 includes investments insured or registered or for which the securities are held by
the City or its agent in the City's name.
r Category 2 includes uninsured and unregistered investments for which the securities are
is held by the counterparty's trust department or agent in the City's name.
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.
Category Total
1 2 3 (fair value)
U.S. Government Securities
Investments not subject to
categorization:
Deposits with State Board of
Administration
Investments with Principal Mutual
Life Insurance Corp. (mutual
funds)
Investments with SunTrust Bank
of Central Florida, N.A. (mutual
funds)
1 11 $-- $ - $ 1,115,568
11,887,886
12,397,805
1,377,580
26.778.839
C,
23
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 3 — Deposits and Investments (Continued):
Investments (Continued)
Reconciliation of deposits and investments to amounts reported on the combined balance
sheet:
Total deposits and investments:
Deposits $ 1,326,925
Investments 26,778,839
Total $28,105,764
Combined balance sheet classification:
Cash and cash equivalents $ 5,890,064
Investments 13,775,385
Restricted cash and cash equivalents 7,324,747
Restricted investments 1,115,568
Total $28,105,764
Note 4 — Receivables:
Accounts and special assessments receivable and the related allowance for doubtful
accounts at September 30, 2002 are as follows:
Debt
General Service Enterprise Trust Total
Receivables:
Interest
$ -
$ - $ 460,749 $ 9
$ 460,758
Taxes
47,120
- - -
47,120
Accounts
-
- 815,573 -
815,753
Special assessments
17,207
3.540.535 11,068,607 -
14,626,349
Total receivables
64,327
3,540,535 12,344,929 9
15,949,800
Less allowance for
Uncollectibles
47120)
- (79.679 -
(126.799
Net Receivables
1 7
3.540.535 12.265.250 $ 9
$15.823.001
24
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 5 - Changes in General Fixed Assets:
A summary of changes in general fixed assets follows:
Balance
Balance
September 30, 2002
$ 1,845,196
4,370,864
14,210,363
3,228,899
5,546,244
336,367
29.537.933
General Fund $21,105,461
Federal Grants 614,227
Gifts 7,818,245
29.537.933
The sources of investment in general fixed assets are as follows:
Note 6 - Changes in General Long -Term Debt:
October 1, 2001
Additions
Deletions
Land
$ 1,841,847
$ 3,349
$ -
Buildings
4,298,781
72,083
-
Improvements other
2001
Additions
Deletions
than buildings
14,121,825
88,538
-
Equipment
3,203,954
231,966
207,021
Construction in
progress
686,178
5,563,995
703,929
Investment in joint
405,830
4,173,682
venture
-
336,367
-
Total
$24,152,585
6.296.298
$ 910
Balance
September 30, 2002
$ 1,845,196
4,370,864
14,210,363
3,228,899
5,546,244
336,367
29.537.933
General Fund $21,105,461
Federal Grants 614,227
Gifts 7,818,245
29.537.933
The sources of investment in general fixed assets are as follows:
Note 6 - Changes in General Long -Term Debt:
25
Balance
Balance
October 1,
September 30,
2001
Additions
Deletions
2002
Compensated absences
$ 807,879
$31,641
$ -
$ 839,520
Capital Improvements Bonds,
Series 1995 A
4,579,512
405,830
4,173,682
Capital Improvements Bonds,
Series 1995 B
1,869,589
-
169,538
1,700,051
Lease payable — Volusia
County
70,420
-
22,324
48,096
Note payable — FIND
-
4,951,936
-
4,951,936
Revenue note, Series 2002A
-
2,540,000
-
2,540,000
Total
$7,523,577
S 597,692
S14,25a.2K
25
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 7 - Capital Lease and Notes Payable:
Capital Lease - The City has a 5% capital lease 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.
The annual requirements to amortize capital lease payable as of September 30, 2002 are
as follows:
Notes Payable - During the year 2002, the City entered into three notes payable
agreements. The City purchased land from Florida Inland Navigation District (FIND) in
August 2002 for a cost of $4,951,936. The note shall be paid in ten equal annual
installments of $495,194 each starting August 26, 2003. For the first five years, no interest
shall accrue on the outstanding principle balance. Starting on August 26, 2007, interest
shall begin to accrue on the outstanding principal balance at an interest rate equal to rate of
interest available from the State Board of Administration (SBA).
Debt service requirements for the FIND note are as follows:
Year
Ended General Long -Term Debt
September 30 Principal Interest Total
2003 $ 495,194 $ - $ 495,194
2004 495,194 - 495,194
2005 495,194 - 495,194
2006 495,194 - 495,194
2007 495,194 - 495,194
2008 -2012 2,475,966 148,588 2,624,524
4.951.936 iL4a.5U 5.100.494
General
Stormwater
Year ending
Long -Term
Water and
Refuse
Management
September 30
Debt
Sewer Fund
Fund
Fund
Total
2003
$ 25,570
$ 3,211
$ 896
$ 729
$30,406
2004
25,570
3,211
896
729
30,406
51,140
6,422
1,792
1,458
60,812
Less amount
representing
interest
(3,044)
381)
104)
89)
(3,618)
Total
48.096
41
1.688
$
X571 4
Notes Payable - During the year 2002, the City entered into three notes payable
agreements. The City purchased land from Florida Inland Navigation District (FIND) in
August 2002 for a cost of $4,951,936. The note shall be paid in ten equal annual
installments of $495,194 each starting August 26, 2003. For the first five years, no interest
shall accrue on the outstanding principle balance. Starting on August 26, 2007, interest
shall begin to accrue on the outstanding principal balance at an interest rate equal to rate of
interest available from the State Board of Administration (SBA).
Debt service requirements for the FIND note are as follows:
Year
Ended General Long -Term Debt
September 30 Principal Interest Total
2003 $ 495,194 $ - $ 495,194
2004 495,194 - 495,194
2005 495,194 - 495,194
2006 495,194 - 495,194
2007 495,194 - 495,194
2008 -2012 2,475,966 148,588 2,624,524
4.951.936 iL4a.5U 5.100.494
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 7 - Capital Lease and Notes Payable (Continued):
In addition to the above, the City issued the following revenue notes:
Water and Sewer General Long -term Debt
Revenue Note, Series 2002 Revenue Note, Series 2002A
Original amount issued $5,140,000 $2,540,000
Issue date March 13, 2002 March 13, 2002
Final maturity October 1, 2012 October 1, 2012
Interest due Monthly Monthly
Interest rate Adjusted Libor Adjusted Libor
The Water and Sewer Revenue, Series 2002, notes are secured by all water and sewer
revenues of the City. Water and sewer revenues include revenue from the operation of the
water and sewer system as well as the special assessments payable to the City with respect
to water service to be provided by the City to the residents of Waterway Park.
The Revenue Note, Series 2002A, is secured by a covenant to budget and appropriate from
Non -Ad Valorem funds.
Debt service requirements for these revenue notes are:
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1 27
Year
Water and Sewer
General Long
-Term Debt
Ended
Revenue Note,
Series 2002
Revenue Note,
Series 2002A
September 30
Principal
Interest
Principal
Interest
2003
$ 514,000
$105,833
$ 254,000
$ 52,299
2004
514,000
95,249
254,000
47,069
2005
514,000
84,666
254,000
41,839
2006
514,000
74,083
254,000
36,609
2007
514,000
63,500
254,000
31,379
2008 -2012
2,570,000
158,749
1,270,000
78,448
Total:
$ 5140,_00-0
$582,_079
$2.540.000
7 42
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1 27
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 8 - Special Assessment and Stormwater Revenue Bonds:
The Special Assessment and Stormwater Revenue Bonds consist of the following:
Series 1995A
Interest Rates:
Interest Dates:
Final Maturity:
Original Amount Issued:
5.22%
April 1, October 1
October 1, 2010
$9,234,660
Series 1995B
5.58%
April 1, October 1
October 1, 2010
$3,964,740
The 1995 Bonds are secured by the revenues pledged in order of priority; (1) assessment
revenues, (2) Stormwater Revenues, (3) Utility Taxes, (4) All Non - Advalorem Revenues
(except Franchise Taxes).
The Special Assessment and Stormwater Revenue Bonds resolutions provide for:
(1) Establishment and maintenance of Special Assessment Improvement Bonds Sinking
Fund and related accounts.
(2) Restrictions on the use of cash from operations in order of priority.
(a) All Special Assessments shall be applied and deposited only inot 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 " Utiltiy 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.
28
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 8 - Special Assessment and Stormwater Revenue Bonds (Continued):
Annual requirements to amortize the Special Assessment and Stormwater Revenue Bonds
as of September 30, 2002 are as follows:
L
L
29
Bond Year
Enterprise Fund
Ended General Long
-Term Debt Stormwater
October 1 Principal
Interest Principal
Interest
2003 $ 606,420
$ 304,950 $ 250,729
$126,084
'
2004 639,151
272,220 264,262
112,551
2005 673,650
237,721 278,525
98,287
2006 710,012
201,358 293,560
83,253
2007 748,340
163,030 309,407
67,406
2008 -2010 2,496,160
237,850 1,032,050
98,341
Total: 5.873.733
1.417.129 $2,428,533
22
Note 9 - Water and Sewer Revenue Bonds:
The Water and Sewer Revenue Bonds consist
of the following:
Series 1993
Series 1991
Interest Rates:
2.75% to 5.5%
5.4% to 7.0%
Interest Dates:
April 1, October 1
April 1, October 1
Final Maturity:
October 1, 2021
October 1, 2021
Original Amount Issued:
$12,460,000
$13,580,000
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.
L
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29
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 9 - Water and Sewer Revenue Bonds (Continued):
The Water and Sewer Revenue Bonds resolution provide for:
(1) Establishment and maintenance of various funds and accounts
(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 bond amortization
t
installment coming due during the next year:
(c)
Deposits to the Reserve Fund are required to make up any deficiency in
'
its balance as compared to the reserve equipment;
(d)
Deposits to the Renewal and Replacement Fund are required each
month in an amount equal to one - twelfth (1/12) of five per centum (5 %)
of the gross revenues of the system for the previous fiscal year;
provided, however, that so long as there shall be on deposit in the
Renewal and Replacement Fund a balance of at least five per centum
(5 %) of the value of the fixed assets of the system, no additional
deposits shall be required;
(e) Deposits will next be made into the Rate Stabilization Fund for the
amount budgeted for the then current period; and
(f) Thereafter for any lawful purposes.
(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.
L�
30
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 9 - Water and Sewer Revenue Bonds (Continued):
im
�M 31
Bond transactions for the City for the year ended September 30, 2002 are as follows:
Balance
Balance
October 1,
September
2001
Additions
Deletions
302002
Water and Sewer Revenue
Bonds, Series 1993 $11,975,000
$ -
$345,000
$11,630,000
ar►
Water and Sewer Revenue
Bonds, Series 1991 715,000
-
20,000
695,000
12.690.000
$ -
$12.325.000
Annual requirements to amortize water and
sewer revenue
bonds outstanding as of
September 30, 2002 are as follows:
Bond Year ending October 1
Principal
Interest
Total
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
450,000
619,143
1,069,143
2007
470,000
594,480
1,064,480
2008 -2012
2,795,000
2,549,362
5,344,362
2013 -2017
3,665,000
1,678,537
5,343,537
2018 -2021
3,730,000
535,875
4,265,875
Totals
12,325,000
$7.965.955
$20,290,955
Less unamortized discount
(130,963
Net
$12,194.037
im
�M 31
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 10 - State Revolving Fund Loans:
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. 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:
Interest Rates:
Payment Frequency:
Payment Amount:
Maturity Date:
Treatment Loan
3.16% to 3.78%
20 annual payments
$516,458
September 30, 2013
Collections Loan
3.57% to 3.78%
20 annual payments
$1,294,980
October 31, 2013
Debt Service requirements for Enterprise Fund State Revolving Fund loans are as follows:
Fiscal year
Endin
Principal
Interest
Total
2003
$ 1,187,004
$ 624,433
$ 1,811,437
2004
1,230,638
580,799
1,811,437
2005
1,275,879
535,558
1,811,437
2006
1,322,786
488,653
1,811,439
2007
1,371,417
440,021
1,811,438
2008 -2012
7,651,577
1,405,614
9,057,191
2013 -2014
2.952.567
153.851
3.106.418
4,228.92 $21,220,797
Note 11 - Deferred Revenues:
Deferred revenues at September 30, 2002 consist of the following:
Occupational licenses received in advance $ 38,619
Deferred special assessments 3.550.422
Total $$UB 41
32
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 12 - Fund Equity Reserves and Designations:
At September 30, 2002, the retained earnings of the enterprise funds were reserved as
follows:
Renewal and replacement
Water /Sewer development
At September 30, 2002, fund balances were reserved and designated as follows:
Enterprise
Funds
$ 731,109
2,212,169
$2,943
1 7 4 11 13.778.990
33
General
Debt
Fund
Service Trust
Reserved for -
Encumbrances
$ 81,750
$ - $ -
Inventories
12,664
- -
Prepaid costs
4,312
- -
Fire donations
2,733
- -
Debt service
-
493,011 -
Employees pension benefits
-
- 13,778,990
101,459
493,011 13,778,990
Designated for -
Special road resurfacing
12,284
- -
1 7 4 11 13.778.990
33
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 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, 2002 follows:
Note 14 — Contributed Capital:
The following is a summary of changes in contributed capital for the Enterprise Funds
during the year ended September 30, 2002:
Water and
Refuse
Stormwater
Sewer
Collection
Management
Total
Balance - Beginning of year
Fund
Fund
Fund
Total
Operating revenues
$4,530,617
$1,345,691
$832,966
$6,709,274
Depreciation and amortization
1,399,729
62,430
171,024
1,633,183
Operating income
84,778
52,285
233,236
370,299
Operating transfers out
712,000
154,500
51,500
918,000
Net income (loss)
4,287
(92,503)
53,997
(34,219)
Transfer of depreciation on
34
contributed assets
748,890
3,281
4,361
756,532
Capital contributions
1,306,052
-
7,910
1,313,962
Property, plant and equipment:
Additions
1,320,698
124,879
1,847
1,447,424
Deletions
(33,067)
(45,602)
(10,712)
(89,351)
Working capital
1,776,432
173,634
(116,152)
1,833,914
Total assets
65,762,730
605,901
4,075,535
70,444,166
Total fund equity
29,794,284
513,757
1,601,128
31,909,169
Long -term liabilities payable
from operating revenues
32,242,997
866
2,178,504
34,422,367
Note 14 — Contributed Capital:
The following is a summary of changes in contributed capital for the Enterprise Funds
during the year ended September 30, 2002:
Water and
Refuse
Stormwater
Sewer
Collection
Management
Total
Balance - Beginning of year
$24,847,579
$16,417
$114,563
$24,978,555
Depreciation on contributed
Assets
(748,890
(3,281)
(4,361)
(756,532
Balance - End of year
$224 98.689
$ 24,222,027
34
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CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 15 - Defined Benefit Retirement Plans:
Plan Descriptions:
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 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 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
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 years of actual
service after October 1, 1987.
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 and City Manager.
35
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 15 - Defined Benefit Retirement Plans (Continued):
Plan Descriptions (Continued):
General Employees' Pension Fund (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.
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.
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CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 15 — Defined Benefit Retirement Plans (Continued):
Plan Descriptions (Continued):
Membership data of the Pension Plans are summarized as follows:
Retirees and beneficiaries currently
receiving benefits and vested
terminated employees
Active employees:
Fully vested
Nonvested
Police General
Officers Employees Firefighters
12 75 1
24 77 9
8 0 9
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.
Investments in the three pension funds are reported at fair value according to the
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 from the City's Finance Department.
In 1997 the City adopted GASB Statement No. 25 on pension accounting and reporting.
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
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. None of the plans held
securities issued by the employer.
Contribution Requirements and Contributions Made - The Florida Legislature, City
Council and each Pension Board governs the City and 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 sufficient assets will be available to pay
benefits when due. The employees' contribution is 2.5% of their salary.
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.
1 37
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 15 — Defined Benefit Retirement Plans (Continued):
Annual Pension Cost and Net Pension Obligation — The City has contributed the Annual
Required Contribution (ARC) each year since plan inception and thus has not had, or had
need to report, a - Net Pension Obligation (NPO). In accordance with GASB Statement No.
27 the City calculated the potential for a net pension liability (asset) and reaffirmed that
none existed at September 30, 2002.
i—
Required supplementary information is as follows:
Schedule of Contributions from the Employer
General Employees
Police Officers
Firefighters
Annual
Percentage
Annual
Percentage
Annual Percentage
Year Ended Required
of ARC
Required
of ARC
Required of ARC
September 30 Contribution Contributed
Contribution
Contributed Contribution Contributed
1997
$546,020
100%
$138,191
100%
$65,735
100%
1998
462,796
100%
172,948
100%
61,653
100%
1999
268,589
100%
181,224
100%
71,331
100%
2000
301,864
100%
350,071
100%
99,161
100%
2001
360,769
100%
351,770
100%
140,163
100%
..
2002
439,160
100%
329,225
100%
140,163
100%
Schedule of Funding Progress - Police Officers' Retirement Trust Fund
Unfunded
Actuarial
(Assets in
Accrued
Excess of) AAL
Actuarial
Liability (AAL) -
Unfunded
as a Percentage
Actuarial
Value of
Frozen Entry
(Assets in
Funded
Covered
of Covered
Valuation
Assets
Age
Excess of) AAL Ratio
Payroll
Payroll
Date
(a)
(b)
(b -a)
(b -a)
(c)
((b -a) /c)
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
10/01/00
3,307,503
4,861,764
1,554,261
68.0
1,041,134
149.2
10/01/01
3,868,547
5,334,718
1,466,171
72.5
980,382
149.5
38 1
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
As noted above, the General Employees and Firefighters Plan use the aggregate actuarial
cost method, which does not identify or separately amortize unfounded actuarial liabilities.
Therefore, presentation of a schedule of funding progress is not required. Since the Police
Officers Plan uses the frozen entry age actuarial cost method, a schedule of funding
progress has been presented above.
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Note 15 — Defined Benefit Retirement Plans (Continued):
Notes to the Required Supplementary Information - The information
presented in the
required supplementary schedule was determined
as part of the actuarial valuation at
October 1, 2001. Additional information
applies as follows:
General
Police
Employees
Officers
Firefighters
Valuation Date
10/01/01
10/01/01
10/01/01
Actuarial Cost Method
Aggregate Cost
Frozen Entry Age
Aggregate Cost
Amortization Method
N/A
Level Percentage
N/A
Remaining Amortization Period
N/A
28 open
N/A
4 Year Smoothed
Asset Valuation Method
Market Value
Market
Market Value
Actuarial Assumptions:
Investment rate of return
8.0%
7.5%
7.5%
Projected salary increases
(including inflation of 3.0 %)
7.5%
7.5%
7.5%
Retirement age
55 and 5 years of
55 with 5 years of
55 with 5 years
plan participation or
accrued service
of accrued
20 years of plan
or after 25 years
service or after
i
participation,
of accrued
25 years of
whichever is
service
accrued service
earliest
As noted above, the General Employees and Firefighters Plan use the aggregate actuarial
cost method, which does not identify or separately amortize unfounded actuarial liabilities.
Therefore, presentation of a schedule of funding progress is not required. Since the Police
Officers Plan uses the frozen entry age actuarial cost method, a schedule of funding
progress has been presented above.
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CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
Note 16 - Defined Contribution Pension Plans:
General Employees - The City adopted a defined contribution plan effective October 1,
1996. The plan is a money purchase plan administered for the City by the 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 % Contributed for % Contributed for
Employment Prior Earnings Prior to Earnings After
to October 1, 1996 October 1, 1996 October 1, 1996
3 months - 2 years 10% 12%
2 years — 4 years 11 12
4 years — 5 years 12 12
Employees are 100% vested immediately upon participation. Employees direct the
investment of funds contributed to the plan on their behalf. Employer contributions made
during the year amounted to $178,326.
Note 17 - Commitments and Contingencies:
Litigation - The City is engaged in various liability claims incidental to the conduct of its
general government operations at September 30, 2002. 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.
Risk Management - The City is exposed to various risks of loss related to torts; theft of,
damage to and destruction of assets; errors and omissions; and natural disasters for which
the City carries commercial insurance. 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.
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CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2002
E
k
Note 18 - Joint Venture:
On January 11, 2002 the Cities of Port Orange, New Smyrna and Edgewater entered into
an interlocal agreement to provide a consolidated (Dispatch) communications and record
system servicing law enforcement, fire, rescue and emergency communications for each of
the Cities. This entity, know as Communications Interlocal Agency (CI Agency) was
established pursuant to Florida Statute Section 163.01 (7). The Cl Agency operates as a
public entity using a fiscal year ending September 30. The interlocal agreement expires on
January 1, 2007, unless renewed by the three cities. On dissolution of the Cl Agency, the
net assets will be distributed in the same proportional share to the financial contribution
made by the cities.
The Cl Agency is an instrumentality of the municipal parties and is entitled to sovereign
immunity except where waived by general law. It operates pursuant to direction from its
governing board. The governing board is comprised of three mayors for the respective
Cities, mentioned above. Operating guidelines, procedures, designations and restrictions
are determined by this governing body.
All cost of the Cl Agency is allocated to Port Orange, New Smyrna and Edgewater in the
respective amounts of 50 %, 25% and 25 %. Therefore, the City of Edgewater has an
ongoing financial responsibility to pay its share of the cost of operations.
The majority of initial, first year charges to the respective Cities were for the acquisitions of
capital purchases. These initial charges were not in accordance with the above allocations,
as some Cities owned certain pieces of equipment prior to the inception of the Entity. The
different proportions of existing equipment and other capital already owned by the three
participating Cities gives rise to a disproportionate allocation of net assets. The City of
Edgewater's net investment in the joint venture is reported in the General Fixed Assets
Account Group and totals $336,367 at September 30, 2002. Complete financial statements
for the Cl Agency are available upon request.
Note 19 — Interfund Receivables and Payables:
Due from and due to other funds at September 30, 2002-are as follows:
Due From Due To
General Fund $1,209 $ -
Trust Funds:
General employees - 1,034
Police officers - 87
Firefighters - 88
12 12
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COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP STATEMENTS
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 are more than one fund of a
given fund type.
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SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues from specific taxes or other earmarked
revenue sources, which legally restricted to expenditures for particular purposes. The City has the
following special revenue funds:
Special Law Enforcement Trust Fund This fund was established to receive revenues
derived from confiscated property obtained during
the enforcement of illegal operations. Proceeds are
utilized strictly for law enforcement purposes,
exclusive of salaries and vehicles. Such purposes
may include drug education programs such as
DARE.
Police Impact Fees Fund
Fire Impact Fees Fund
Recreation Impact Fees Fund
This fund was established to account for police
impact fees collected from new developments
constructed in the City.
This fund was established to account for fire impact
fees collected from new developments constructed
in the City.
This fund was established to account for recreation
impact fees collected from new developments
constructed in the City.
CITY OF EDGEWATER, FLORIDA
COMBINING BALANCE SHEET
ALL SPECIAL REVENUE FUNDS
September 30, 2002
1
oft
Special
42
Total
Law
Police
Fire
Recreation
Special
Enforcemert
Impact
Impact
Impact
Revenue
Trust
Fees
Fees
Fees
Funds
Assets:
Cash and cash equivalents
$ 24,267
$ 49,115
$ 107,403
$ 107,052
$ 287,837 r "
Total assets
$ 24,267
$ 49,115
$ 107,403
$ 107,052
$ 287,837
Liabilities and Fund Balances:
Fund Balances:
Unreserved:
Designated for subsequent
year's budget
24,267
49,115
107,403
107,052
287,837
Total fund balances
24,267
49,115
107,403
107,052
287,837
Total liabilities and fund
balances
$ 24,267
$ 49,115
$ 107,403
$ 107,052
$ 287,837
42
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF REVENUES.
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL SPECIAL REVENUE FUNDS
rr
For The Year Ended September 30, 2002
M
In
Expenditures:
Current:
Public safety
Culture and recreation
Total expenditures
Excess (Deficiency) of
Revenues Over Expenditures
Fund Balance - Beginning of Year
Residual Equity Transfers In
Fund Balance - End of Year
9,453 - - - 9,453
149,201 149,201
9,453 - - 149,201 158,654
(1,141) 43,226 75,770 (52,649) 65,206
25,408
Special
31,633
159,701
222,631
Total
$ 49,115
Law
Police
Fire
Recreation
Special
Enforcement
Impact
Impact
Impact
Revenue
Trust
Fees
Fees
Fees
Funds
Revenues:
Fines and forfeitures
$ 8,211
$ -
$ -
$ -
$ 8,211
Impact fees /special
assessments
-
42,618
74,326
94,037
210,981
Investment income
101
608
1,444
2,515
4,668
Total revenues
8,312
43,226
75,770
96,552
223,860
In
Expenditures:
Current:
Public safety
Culture and recreation
Total expenditures
Excess (Deficiency) of
Revenues Over Expenditures
Fund Balance - Beginning of Year
Residual Equity Transfers In
Fund Balance - End of Year
9,453 - - - 9,453
149,201 149,201
9,453 - - 149,201 158,654
(1,141) 43,226 75,770 (52,649) 65,206
25,408
5,889
31,633
159,701
222,631
$ 24,267
$ 49,115
$ 107,403
$ 107,052
287,837
43
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUA
ALL SPECIAL REVENUE FUNDS
For The Year Ended September 30, 2002
44
Special Law Enforcement Trust
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Fines and forfeitures
$ 6,728
$ 8,211
$ 1,483 ..
Impact fees /special assessments
-
-
-
Investment income
130
101
(29)
Total revenues
6,858
8,312
1,454
Expenditures:
Current:
Public safety
8,664
9,453
(789)
Culture and recreation
-
-
-
Debt service:
Principal retirement
-
-
-
Interest and fiscal charges
-
-
-
Total expenditures
8,664
9,453
(789)
Excess (Deficiency) of Revenues
Over Expenditures
(1,806)
(1,141)
665
Fund Balances - Beginning of Year
-
-
-
Residual Equity Transfers In
25,408
25,408
Fund Balances - End of Year
S 23.602
S 24.267
$ 665
44
Police Impact Fees Fire Impact Fees
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
32,250 42,618 10,368 72,000 74,326 2,326
500 608 108 1,000 1,444 444
32,750 43,226 10,476 73,000 75,770 2,770
32,750 43,226 10,476 73,000 75,770 2,770
5,889 5,889 31,633 31,633
$ 38,639 $ 49,115 $ 10,476 $ 104,633 $ 107,403 $ 2,770
(Continued)
45
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUA
ALL SPECIAL REVENUE FUNDS (Continued)
For The Year Ended September 30, 2002
Revenues:
Recreation Impact Fees
Variance
Favorable
Budget Actual (Unfavorable)
Fines and forfeitures $ - $ - $ -
Impact fees /special assessments 96,000 94,037 (1,963)
Investment income 1,200 2,515 1,315
Total revenues 97,200 96,552 (648)
Expenditures:
Current:
Public safety
Culture and recreation
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Fund Balances - Beginning of Year
Residual Equity Transfers In
Fund Balances - End of Year
145,136 149,201 (4,065)
145,136 149,201 (4,065)
(47,936) (52,649) (4,713)
159,701 159,701 -
$ 111,765 $ 107,052 $ (4,713)
M.
6
go
Totals
Variance
Favorable
Budget Actual (Unfavorable)
$ 6,728 $ 8,211 $ 1,483
200,250 210,981 10,731
2,830 4,668 1,838
209,808 223,860 14,052
8,664 9,453 (789)
145,136 149,201 (4,065)
153 158,654 (4,854)
56,008 65,206 9,198
222,631 222,631 -
$ 278,639 $ 287,837 $ 9,198
47
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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.
Water and Sewer Fund The Water and Sewer Fund accounts for the fiscal
Refuse Collection Fund
Stormwater Management Fund
activities of the City's water and sewer treatment
and distribution operations, as well as the funding
and payment of related debt.
The Refuse Collection Fund accounts for the fiscal
activities of the City's refuse collection and disposal
operation.
The Stormwater Management Fund accounts for
the fiscal activities of the City's storm water
drainage operation, as well as the funding and
payment of related debt.
CITY OF EDGEWATER, FLORIDA
COMBINING BALANCE SHEET
ALL ENTERPRISE FUNDS
September 30, 2002
Water and
Sewer
Assets:
Current assets:
Cash and cash equivalents
Receivables (net of allowance
(for uncollectibles)
Inventory - materials
Prepaid costs
Total current assets
Restricted assets:
Cash and cash equivalents
Investments
Special assessments receivable -
current portion
Total restricted assets
Fixed assets:
Property, plant and equipment
Less: accumulated depreciation
Construction in progress
Total fixed assets - net
Other assets:
Special assessments receivable
Unamortized bond issuance costs
Total other assets
Total assets
Total
Refuse Stormwater Enterprise
Collection Management Funds
$ 2,297,170 $ 203,064 $ 135,425 $ 2,635,659
638,689
61,733
35,472
735,894
43,827
-
8,854
52,681
3,973
115
-
4,088
2,983,659
264,912
179,751
3,428,322
7,324,747
-
-
7,324,747
1,115,568
-
-
1,115,568
1,507,911
-
-
1,507,911
9,948,226
-
-
9,948,226
52,801,186
895,363
4,872,419
58,568,968
(13,422,834)
(554,374)
(993,777)
(14,970,985)
3,091,349
-
9,444
3,100,793
42,469,701
340,989
3,888,086
46,698,776
10,021,445
-
-
10,021,445
339,699
-
7,698
347,397
10,361,144
-
7,698
10,368,842
$ 65,762,730 $ 605,901 $ 4,075,535 $ 70,444,166
48
ft
M
in
r•
Liabilities and Fund Equity:
Current liabilities (payable from
current assets):
Accounts payable
Retainage payable
Accrued liabilities
Notes payable- current
Total current liabilities
'1
7
CITY OF EDGEWATER, FLORIDA
COMBINING BALANCE SHEET
ALL ENTERPRISE FUNDS
Current liabilities (payable from
restricted assets):
Customer deposits
Accrued interest payable
Revenue bonds payable- current
State revolving loan- current
Total current liabilities (payable
from restricted assets)
Long -term liabilities:
Accrued compensated absences
Notes payable
Revenue bonds payable
State revolving loan
Total long -term liabilities
Total liabilities
Fund Equity:
Contributed capital
Retained earnings:
Reserved for renewal & replacement
Reserved for development
Unreserved
Total retained earnings
Total fund equity
Total liabilities & fund equity
i
September 30, 2002
Water and Refuse Stormwater
Sewer Collection Management
Total
Enterprise
Funds
$ 346,176 $
26,671
$ 2,724 $
375,571
100,505
-
-
100,505
11,596
63,785
41,782
117,163
516,946
822
251,397
769,165
975,223
91,278
295,903
1,362,404
523,086 -
- 523,086
423,132 -
- 423,132
385,000
- 385,000
1,187,004 -
- 1,187,004
2,518,222 - - 2,518,222
232,004
-
-
232,004
4,629,096
866
2,178,504
6,808,466
11,809,037
-
-
11,809,037
15,804,864
-
-
15,804,864
32,475,001
866
2,178,504
34,654,371
35,968,446
92,144
2,474,407
38,534,997
24,098,689
13,136
110,202
24,222,027
731,109
-
-
731,109
2,212,169
-
-
2,212,169
2,752,317
500,621
1,490,926
4,743,864
5,695,595
500,621
1,490,926
1,687,142
29,794,284
513,757
1,601,128
31,909,169
$ 65,762,730 $ 605,901 $ 4,075,535 $ 70,444,166
49
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' CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
ALL ENTERPRISE FUNDS
For The Year Ended September 30, 2002
i
Water and
Sewer
Refuse
Collection
Stormwater
Management
Total
Enterprise
Funds
I
50
Operating Revenues:
User charges
$ 4,530,617
$ 1,345,691
$ 832,966
$ 6,709,274
Operating Expenses:
Personal services
1,833,134
632,408
352,546
2,818,088
Materials and supplies
1,000,516
141,712
49,973
1,192,201
r
Contractual services
Depreciation and amorization
212,460
1,399,729
456,856
62,430
26,187
171,024
695,503
1,633,183
Total operating expenses
4,445,839
1,293,406
599,730
6,338,975
Operating income
84,778
52,285
233,236
370,299
Nonoperating Revenue
(Expenses):
Capital contributions
1,306,052
-
7,910
1,313,962
Investment Income
739,327
6,686
5,347
751,360
Interest expense
(1,412,784)
(111)
(139,013)
(1,551,908)
Gain (loss) on disposal of
property
(1,086)
3,137
(1,983)
68
Total nonoperating revenue
631,509
9,712
(127,739)
513,482
Income before operating
transfers
716,287
61,997
105,497
883,781
Operating Transfers:
Operating transfers out
(712,000)
(154,500)
(51,500)
(918,000)
L Net
operating transfers
(712,000)
(154,500)
(51,500)
(918,000)
Net income (loss)
4,287
(92,503)
53,997
(34,219)
Add back depreciation
L
on contributed assets
748,890
3,281
4,361
756,532
Retained Earnings -
Beginning of Year
4,942,418
589,843
1,432,568
6,964,829
End of Year
$ 5,695,595
$ 500,621
$ 1,490,926
$ 7,687,142
I
50
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
ALL ENTERPRISE FUNDS
For The Year Ended September 30, 2002
Cash Flows from Non - Capital Financing Activities:
Operating transfers out
(712,000)
(154,500)
(51,500)
Total
Net cash used in non - capital
Water and
Refuse
Stormwater
Enterprise
financing activities
Sewer
Collection
Management
Funds
Cash Flows from Operating Activities:
Activities:
6,686
5,347
(364,208)
Receipts from customers
$ 4,580,856
$ 1,346,783
$ 797,494
$ 6,725,133
Payments to suppliers
(945,531)
(599,711)
(78,583)
(1,623,825)
Payments to employees
(1,806,433)
(632,342)
(345,794)
(2,784,569)
Net cash provided by operating activities
1,828,892
114,730
373,117
2,316,739
Cash Flows from Non - Capital Financing Activities:
Operating transfers out
(712,000)
(154,500)
(51,500)
(918,000)
Net cash used in non - capital
739,327
6,686
5,347
751,360
financing activities
(712,000)
(154,500)
(51,500)
(918,000)
Cash Flows from Capital and Related Financing
Activities:
6,686
5,347
(364,208)
Proceeds from note payable
5,140,000
-
-
5,140,000
Payments on bonds and notes payable
(1,512,722)
(782)
(238,526)
(1,752,030)
Proceeds from sale of capital assets
-
3,137
-
3,137
Acquisition of capital assets
(2,665,978)
(124,879)
(9,758)
(2,800,615)
Interest paid on bonds and notes payable
(1,419,561)
(119)
(139,021)
(1,558,701)
Impact fees received
1,454,392
-
7,910
1,462,302
Net cash provided by (used in)
203,064 $
135,425
$ 2,635,659
Restricted assets
capital and related financing activities
996,131
(122,643)
(379,395)
494,093
Cash Flows from Investing Activities:
Purchase of investments
(1,115,568)
-
-
(1,115,568)
Interest received
739,327
6,686
5,347
751,360
Net cash provided by (used in)
investing activities
(376,241)
6,686
5,347
(364,208)
Net (Decrease) Increase in Cash and
1,736,782
(155,727)
(52,431)
1,528,624
Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
7,885,135
358,791
187,856
8,431,782
Cash and Cash Equivalents at End of Year
$ 9,621,917 $
203,064 $
135,425
$ 9,960,406
Classified As:
Current assets
$ 2,297,170 $
203,064 $
135,425
$ 2,635,659
Restricted assets
7,324,747
-
-
7,324,747
Total
$ 9,621,917 $
203,064 $
135,425
$ 9,960,406
51
4
Net Cash Provided by Operating Activities
1
1
i
1
1
i
1
Reconciliation of Operating Income to Net
Cash Provided byOperating Activities:
Water and
Operating income
Stormwater
Adjustments Not Affecting Cash:
Sewer
Depreciation and amortization
Management
Change in Assets and Liabilities:
( Increase)decrease in accounts receivable
( Increase) in prepaids
$ 84,778
Decrease in inventory
$ 233,236
Increase (decrease) in accounts payable
Increase in accrued liabilities
Increase in retainage payable
1,399,729
Decrease in due from other government
171,024
Increase in customer deposits
9,367
Total adjustments
Net Cash Provided by Operating Activities
1
1
i
1
1
i
1
$ 1,828,892 $ 114,730 $ 373,117 $ 2,316,739
52
Total
Water and
Refuse
Stormwater
Enterprise
Sewer
Collection
Management
Funds
$ 84,778
$ 52,285
$ 233,236
$ 370,299
1,399,729
62,430
171,024
1,633,183
9,367
(1,253)
(35,472)
(27,358)
(300)
-
-
(300)
1,341
-
-
1,341
165,899
(1,143)
(2,423)
162,333
26,701
66
6,752
33,519
100,505
-
-
100,505
-
2,345
-
2,345
40,872
-
-
40,872
1,744,114
62,445
139,881
1,946,440
$ 1,828,892 $ 114,730 $ 373,117 $ 2,316,739
52
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FIDUCIARY FUND TYPES
These funds account for assets 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
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.
General Employees' Pension Fund
Municipal Firefighters' Retirement Trust
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.
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 qualified
retirees of the Edgewater Fire Department in
accordance with a defined benefit plan.
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF PENSION FUND NET ASSETS
September 30, 2002
Net Assets Held in Trust for
Pension Benefits (A schedule
of funding progress for
Police Officers Plan is
presented on page 38 )
$ 8,365,438 $ 4,031,246 $ 1,382,306 $ 13,778,990
53
General
Police
Employees
Officers
Firefighters
Totals
Assets:
Cash and short -term investments
$ -
$ -
$ 4,805
$ 4,805
Receivables:
Interest
-
-
9
9
Total receivables
-
-
9
9
Investments, at fair value:
Debt mutual funds
3,583,999
1,723,428
610,641
5,918,068
Equity mutual funds
3,985,525
1,911,546
766,939
6,664,010
Other mutual funds
796,948
396,359
-
1,193,307
Total investments
8,366,472
4,031,333
1,377,580
13,775,385
Total assets
8,366,472
4,031,333
1,382,394
13,780,199
Liabilities:
Due to other funds
1,034
87
88
1,209
Net Assets Held in Trust for
Pension Benefits (A schedule
of funding progress for
Police Officers Plan is
presented on page 38 )
$ 8,365,438 $ 4,031,246 $ 1,382,306 $ 13,778,990
53
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF CHANGES IN PENSION FUND NET ASSETS
For The Year Ended September 30, 2002
54
General
Police
Employe
Officers
Firefighters
To
Additions:
Contributions:
Employer
$ 439,160
$ 329,225
$ 140,163 $
908,548
Plan members
62,954
76,069
50,922
189,945
State
-
83,309
59,783
143,092
Total contributions
502,114
488,603
250,868
1,241,585
Investments income:
Investment income(loss)
587,488
173,982
(79,586)
681,884
Less investment expense
-
(14,825)
(10,094)
(24,919)
Net investment income(loss)
587,488
159,157
(89,680)
656,965
Total additions
1 ,089,602
647,760
161,188
1,898,550
Deductions:
Benefits /distributions
168,417
91,150
13,842
273,409
Administrative expenses
23,045
238
7,062
30,345
Total deductions
191,462
91,388
20,904
303,754
Net Increase(Decrease)
898,140
556,372
140,284
1,594,796
Net Assets Held in Trust for
Pension Benefits :
Beginning of Year
7,467,298
3,474,874
1,242,022
12,184,194
End of Year
$ 8,365,438
$ 4,031,246
$ 1,382,306 $
13,778,990
54
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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 that the current fiscal year; and
(3) a significant value.
The General Fixed Assets are a self - balancing account group which requires
adequate accounting procedures and records to assure their protective
custody.
11
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CITY OF EDGEWATER, FLORIDA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
For The Year Ended September 30, 2002
Function and Activity
Total
Land
Buildings
Improvements
Other than
Buildings
Machinery
and
Equipment
General government
$ 585,833
$ 300
$ 175,818
$ 74,943
$ 334,772
Public safety
3,507,457
105,591
1,225,060
23,055
2,153,751
Highways and streets
13,118,539
6,906
58,268
12,762,624
290,741
Library
672,503
45,811
512,526
114,166
-
Recreation
5,770,990
1,686,588
2,399,192
1,235,575
449,635
Total allocated
Investment in joint
to function
venture
$ 1,845,196
$ 4,370,864
$ 14,210,363
$ 3,228,899
Construction in progress
5,546,244
$ 24,152,585
$ 6,338,947
$ 953,599
$ 29,537,933
Investment in joint
venture
336,367
Total
$ 29,537,933
Balance Balance
10/1/2001 Additions Deletions 9/30/2002
I
40
55
General government
$ 520,093
$ 80,499
$ 14,759
$ 585,833
Public safety
3,467,164
241,712
201,419
3,507,457
Highways and streets
13,118,908
3,990
4,359
13,118,539
Library
672,503
-
-
672,503
Recreation
5,687,739
112,384
29,133
5,770,990
Consruction in progress
686,178
5,563,995
703,929
5,546,244
Investment in joint
venture
-
336,367
-
336,367
Totals
$ 24,152,585
$ 6,338,947
$ 953,599
$ 29,537,933
I
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55
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m
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E-A
STATISTICAL SECTION
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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. Ration 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.
11
P',
CITY OF EDGEWATER, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES
BY FUNCTION (1)
Last Ten Fiscal Years
Fiscal Year
General
Ended
Total
Government
Public Safety
Transportation
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
2001
10,508,931
1,633,024
4,395,867
949,445
2002
15,749,026
2,133,671
5,362,820
986,671
(1) Includes General, Special Revenue, Capital Projects and Debt Service Funds.
56
■s
in
an
�.
Culture and
Capital
Debt
Recreation
Outlay
Service
$522,092
$426,366
$134,516
559,520
402,505
41,704
r
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
925,987
1,665,678
936,940
1,335,748
4,967,147
962,969
r
�r 57
CITY OF EDGEWATER, FLORIDA
GENERAL GOVERNMENTAL REVENUES
BY SOURCE (1)
Last Ten Fiscal Years
(1) Includes General, Special Revenue„ Capital Projects and Debt Service Funds.
58
Licenses
Fiscal Year
and
InterGovernmental
Ended
Total
Taxes
Permits
Revenues
1993
$4,989,875
$3,774,500
$133,884
$778,541
1994
5,507,841
4,333,768
169,855
580,153
1995
6,830,328
4,386,811
160,758
549,529
1996
7,547,035
5,016,151
181,459
574,174
1997
7,293,444
5,147,962
179,136
688,286
1998
7,468,670
5,484,239
185,503
667,988
1999
7,672,589
5,516,973
220,890
806,787
2000
7,718,669
5,648,694
267,252
663,079
2001
9,117,174
6,189,561
297,863
1,382,955
2002
9,152,993
5,130,474
326,793
2,566,811
(1) Includes General, Special Revenue„ Capital Projects and Debt Service Funds.
58
it
Pit
In
to
is
Charges for
Fines and
Investment
Special
Miscellaneous
Services
Forfeitures
Income
Assessments
Revenue
$100,463
$104,826
$ -
$ -
$ 97,661
195,180
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
205,982
115,608
36,420
598,314
290,471
57,137
77,508
293,050
577,998
123,222
59
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
1993
$1,592,474 (2)
$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
2001
2,647,837
2,599,328
98.17
2002
2,794,043
2,704,707
96.80
(1) Each fiscal year contains data from the ad valorem assessment roll of the preceding year
(i.e., fiscal year 2002 contains the 2001 assessment roll tax collections).
(2) Source: "Certification of Final Taxable Value" (Form DR -422).
-
im
CITY OF EDGEWATER, FLORIDA
+� ASSESSED AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY (1)
Last Ten Fiscal Years (1)
61
(In Thousands)
Ratio of Total
Ratio of Total
Assessed to
Assessed
(2) Total
(3)
Taxable Value
Fiscal Year Assessed Estimated Estimated
Assessed
to Estimated
Ended Value Actual Value Actual Value
Taxable Value
Actual Value
r.
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
w
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
2001 632,205 632,205 100.00
445,014
70.39
2002 694,658 694,658 100.00
469,587
67.59
err
(1) Obtained from the Revised Recapitulation of the Ad Valorem Assessment Rolls of
Edgewater, Florida provided by Volusia County, Florida Finance Department.
M
(2) Each fiscal year contains the ad valorem assessment roll of the preceding year (i.e., fiscal
year 2002, contains data on the 2001 assessment roll).
(3) Assessed taxable values for all fiscal years presented are stated
net of the constitutional
homestead exemption of $25,000 and the additional senior
homestead exemption of
$25,000.
61
CITY OF EDGEWATER, FLORIDA
PROPERTY TAX RATES - ALL DIRECT
AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years (1)
Tax rates per $1,000 of assessed taxable values
62
Edgewater
Fiscal Year
General
Ended
Fund
1993
4.600
1994
5.888
1995
5.840
1996
7.101
1997
6.590
1998
6.440
1999
6.290
2000
5.950
2001
5.950
2002
5.950
Tax rates per $1,000 of assessed taxable values
62
Southeast
Florida
St Johns
Volusia
Inlet and
Inland
Wafter
School
Volusia
Flospital
Mosquibo
Port
Navigation
Management
District
Cour
District
Control
District
District
Total
9.548
5.063
2.329
0.315
0.093
0.052
0.358
22.358
9.869
5.627
2.332
0.318
0.094
0.051
0.470
24.649
10.277
5.716
2.292
0.287
0.094
0.049
0.482
25.037
10.887
6.172
2.285
0.262
0.094
0.040
0.482
27.323
10.821
6.217
2.247
0.238
0.093
0.038
0.482
26.726
10.487
6.381
2.132
0.238
0.090
0.050
0.482
26.300
10.376
6.378
2.052
0.238
0.090
0.047
0.482
25.953
9.158
6.367
2.528
0.238
0.090
0.041
0.472
24.844
9.158
6.367
2.528
0.238
0.090
0.041
0.472
24.844
8.899
6.604
2.320
0.238
0.090
0.0385
0.462
24.602
Tax rates per $1,000 of assessed taxable values
62
CITY
OF EDGEWATER,
FLORIDA
SPECIAL
ASSESSMENT COLLECTIONS
Last Ten Fiscal Years
rr
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
2001
670,901
762,235
315,347
341,279
2002
731,162
823,170
352,167
383,260
63
CITY OF EDGEWATER, FLORIDA
COMPUTATION OF OVERLAPPING DEBT
September 30, 2002
Overlapping Governments
Volusia County School District
Total overlapping debt
Percentage
Applicable to
Net Debt the City of
Outstanding Edgewater
$44,385,000 2.76
City of
Edgewater
Share of
Debt
$1,225,026
$1,225,026
(1) Data provided by above agencies.
(2) The City does not have any general obligation long -term debt outstanding.
64
CITY OF EDGEWATER, FLORIDA
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
L
(1) Obtained from University of Florida, Bureau of Economics and Business Research.
Census Bureau estimate for April 2000 and City of Edgewater Planning Dept.
L (2)
(1)
(2)
(3) Per
(4) County
(5)
School
(6)
Fiscal
Estimated
Registered
Capita
Unemployment
Percent
Median
L (6)
Year
Population
Voters
Income
Rate
Enrollment Attendance
Age
`
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
-
2001
19,390
12,484
22,520
4.0
1,457
95
2002
19,515
12,406
23,195
5.3
1,603
93
-
L
(1) Obtained from University of Florida, Bureau of Economics and Business Research.
Census Bureau estimate for April 2000 and City of Edgewater Planning Dept.
L (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.
L (5)
Volusia County School Board - includes grades K -5, Edgewater Elementary School and
Indian River Elementary School.
L (6)
Census Bureau (1990) and New Smyrna Beach, Edgewater, Oak Hill, Chamber of
Commerce Age Distribution (1987 -CACI Source book).
65
CITY OF EDGEWATER, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Last Ten Fiscal Years
(!n Thousands)
(1) Provided by Florida Bankers Association.
(2) Obtained from revised recapitulation of the ad valorem assessment rolls of the City of
Edgewater.
..
(
(
Commercial
Residential
(1)
Assessed
Fiscal
Construction
Construction
Deposits
Savings
Value
Year
Units
Value
Units
Value
Banks
and Loan
1993
2
$138
106
$6,877
$76,568
$89,859
$474,058
1994
5
900
126
8,015
88,750
91,544
484,289
1995
8
1,987
70
5,799
93,927
95,542
499,443
1996
13
2,379
124
10,068
96,342
87,419
516,875
1997
20
2,224
105
7,626
190,381
-
542,399
1998
35
2,465
116
9,944
209,575
-
561,103
1999
11
1,755
201
15,834
201,653
-
572,804
2000
23
6,743
195
19,077
201,494
-
589,101
2001
9
1,159
285
28,892
206,981
-
632,205
2002
17
3,953
226
23,495
206,960
-
694,658
(1) Provided by Florida Bankers Association.
(2) Obtained from revised recapitulation of the ad valorem assessment rolls of the City of
Edgewater.
..
CITY OF EDGEWATER, FLORIDA
SUMMARY OF TEN LARGEST
SINGLE UNIT WATER USERS
September 30, 2002
Customers
County of Volusia
Average
Consumption Percent of
Per Month Total Gallons
(Gallons) (1) Consumed
6,514,000
Eastern Shores Mobile Village
693,000
Coronado Paint Company
380,000
Halifax Court (Hendry)
e
Volusia County Schools
118,000
Blue Gables, Inc.(Naco, Inc.)
105,000
Pyramid Park
101,000
Friendly Shores HOA
92,000
Publix Supermarket, Inc.
91,000
Winn Dixie
Average
Consumption Percent of
Per Month Total Gallons
(Gallons) (1) Consumed
6,514,000
13.32%
693,000
1.42
380,000
.78
157,000
.32
118,000
.24
105,000
.21
101,000
.21
92,000
.19
91,000
.19
65,000
.13
8,316,000
17.00%
a
FY -2002 average monthly consumption: 48,890,330 gallons
(1) Based on individual meter connections per City of Edgewater, Florida, records.
(2) The total average monthly consumption for the ten largest water users decreased from
�. the previous year by a total of 161,000 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 2,599 customers were
connected to the reclaimed /reuse water system at year end.
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e
P
CITY OF EDGEWATER, FLORIDA
PRINCIPAL TAXPAYERS
September 30, 2002
Customers
Florida Power & Light
Coronado Paint Company, Inc.
BellSouth Communications, Inc.
Edgewater Commons
Laramie Florida Shores, LP
Time Warner Entertainment
Bel Aire Investments, Inc.
First Federal Savings and Loan Association
Porta, Scott
Carder, James and Rosemary
Source: 2002 ad valorem tax rolls of the City of Edgewater, Florida. DR -403AM
FY -2002 total assessed valuation $ 694,658,101.
.:
Percent of
Assessed
Total Assessed
Valuation
Valuation
$ 8,078,287
1.16%
6,602,260
.95
3,488,626
.50
3,236,924
.47
2,811,944
.40
2,805,513
.40
1,903,500
.27
1,788,553
.26
1,670,366
.24
1,513,472
.22
$ 33,899,445
4.88%
Source: 2002 ad valorem tax rolls of the City of Edgewater, Florida. DR -403AM
FY -2002 total assessed valuation $ 694,658,101.
.:
i
W
CITY OF EDGEWATER, FLORIDA
MISCELLANEOUS STATISTICAL DATA
September 30, 2002
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:
Police Department:
Sworn Officers
Civilian Employees
Reserve Officers
35
5
5
Fire Department:
Insurance rating
Number of stations
Full -time firefighters
Volunteer firefighters
Civilian employees
Animal Control
Reserves
City Parks (Active and Open Space)
Park acreage
Community Facilities
Nearest Commercial Airport:
Daytona Beach International
Financial Institutions
Churches
Libraries
Post office locations
Electric Service:
Florida Power & Light
Telephone Service:
Bell South
Cable TV Service:
Time Warner Communications, Inc.
Source: City of Edgewater Finance Department
Class 5/9
2
21
16
3
2
3
14
144
5
14
1
1
.r
so
an
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CITY OF EDGEWATER, FLORIDA
MISCELLANEOUS STATISTICAL DATA - CONTINUED
September 30, 2002
Garbage/Trash Collection:
Type:
Residential service
Commercial /Industrial service
Recycling
Water Service:
Source
Plant capacity
Average daily demand
Treatment
Monthly Residential and Commercial Rates
Sewer Service:
System Type:
Average Daily Flow
Plant Capacity
Avg. Capacity Used Daily
Avg. Daily Reclaimed Water
Consumption
Minimum
Additional 1,000 gallons
Stormwater Management Fee
Per Equivalent Drainage Unit (EDU)
Without site mitigation
With site mitigation
Pickups /wk 10/1/96
2 $11.50
1 $13.00
1 $1.50
Florida Upper Aquifer
5.0 mgd
1.778 mgd
Lime softening
Effective 10/1/94
Advanced Wastewater Treatment
1.664 mgd
2.750 mgd
60.5%
1.171 mgd
Relcaimed
Water Sewer Water
$8.00 $9.55 $5.00
$1.25 -3.90 $3.18
Effective 10/1/94
$6.00
$2.92
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CITY OF EDGEWATER, FLORIDA
WATER AND SEWER REVENUE BOND COVERAGE
September 30, 2002
Net (4) Total
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
9,
Year Revenues Expenses
Funds
Bonds Funds Bonds
Requirement Coveraqe
2002 $4,898,298 $3,047,196
$276,222
$1,574,879 $1,600,311 $3,175,190
$2,879,701 1.10
2001 4,949,424 2,901,684
278,780
1,768,960 1,332,986 3,101,946
2,878,250 1.08
2000 4,984,683 2,593,721
267,969
2,122,993 1,305,116 3,428,109
2,878,463 1.19
1999 4,713,972 2,468,742
261,066
1,984,164 1,329,440 3,313,604
2,881,456 1.15
1998 4,576,320 2,325,604
252,675
1,998,041 1,335,682 3,333,723
2,877,834 1.16
Total Funds
Total Bond
(2)
Fiscal Available
Allowable
Service
Bond Service
t
Year for All Bonds
Impact Fees Total Requirement
Coverage
2002 $3,175,190
$503,152
$3,678,342 $2,879,701
1.28
2001 3,101,946
502,468
3,604,414 2,878,250
1.25
2000 3,428,109
502,569
3,930,678 2,878,463
1.37
1999 3,313,604
503,978
3,817,582 2,881,456
1.32
1998 3,333,723
502,273
3,835,996 2,877,834
1.33
Fiscal year 2002 calculations:
Gross revenues:
Operating revenues
$4,530,617
Connection fees
200,994
Interest revenues (3)
166,687
$4,898,298
Operation and maintenance expenses:
Depreciation
$4,446,925
Total operating expenses
(1,399,729)
$3,047,196
Allowable impact fees:
Bond service requirement
$1,068,263
Impact fee percentage
47.1%
$503,152
Bond service requirements:
6.
Sr. Lien Jr. Lien
Total
Principal
$ 385,000 $ 1,144,918 $ 1,529,918
Aft
Interest
683,263 666,520 1,349,783
$ 1,068,263 $ 1,811,438 $ 2,879,701
(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
71
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INTERNAL CONTROL AND COMPLIANCE SECTION
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MCDIRMIT DAMS PUCKETT
om
Im
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
go
The Honorable Mayor and
City Council
I.. City of Edgewater, Florida
, We have audited the general purpose financial statements of the City of Edgewater, Florida, as of
and for the year ended September 30, 2002, and have issued our report thereon dated February
25, 2003. We conducted our audit in accordance with auditing standards generally accepted in the
ow United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Compliance — As part of obtaining reasonable assurance about whether the City of Edgewater,
ow Florida's general purpose 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
4W 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
rr. Auditing Standards. However, we noted certain immaterial instances of noncompliance that we
have reported to management of the City of Edgewater, Florida, in a separate letter dated February
25, 2003.
+r
Internal Control Over Financial Reporting — In planning and performing our audit, we considered
the City of Edgewater, Florida's internal control over financial reporting in order to determine our
auditing procedures for the purpose of expressing our opinion on the basic financial statements
and not to provide assurance on the internal control over financial 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 audited may occur and not be detected within a timely
•� period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operation that we consider to
be material weaknesses. However, we noted other matters involving the internal control over
,. financial reporting that we have reported to management of City of Edgewater, Florida in a
separate letter dated February 25, 2003.
ra MCDIRMIT DAVIS PUCKETT & COMPANY, LLC
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32501
TELEPHONE 407 - 543 -5406 • FAx 407- 649 -9339 • EMAIL: INFO a@MDPCPA.COM
MEMBERS; PRIVATE COMPANIES PRACTICE SECTION • AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
72
0
This report is intended solely for the information and use of management, the City Commission and an
the Auditor General of the State of Florida, and is not intended to be, and should not be used by
anyone other than these specified parties.
McDIRMIT DAVIS PUCKETT & COMPANY, LLC
February 25, 2003
..
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1
MANAGEMENT LETTER
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MCDIRMIT DAVIS PUCKETT
MANAGEMENT LETTER
Honorable Mayor and City Council
City of Edgewater, Florida
In planning and performing our audit of the general purpose financial statements of the City of
40 Edgewater, Florida fort he year ended September 30, 2002, 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 accompanying findings
and recommendations, which resulted f rom o ur consideration of i nternal control, are s ubmitted to
assist in improving procedures and controls.
Since the comments and observations contained in this letter are a by- product of the audit of financial
statements, the cost justification and other aspects of our suggestions have not been fully evaluated;
these evaluations should be made by , management. Therefore, we recognize that, after
consideration, certain suggestions and recommendations may not be practical to implement.
We have also provided comments as required by the Rules of the Auditor General of the State of
Florida.
We appreciate the cooperation we have received from the City's personnel in connection with
developing these recommendations. We appreciate the opportunity to have been of service to you.
Should you have any questions about our recommendations, this letter, or other matters, please
contact us at your convenience.
February 25, 2003
MCDIRMIT DAVIS PUCKETT & COMPANY, LLC
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32801
TELEPHONE 407 - 843 -5406 • FAx 407 - 649 -9339 • EMAIL: INFO a@MDPCPA.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION • AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
74
Management Comments
City of Edgewater, Florida
A. Status of Prior Year Recommendations
1. Fixed Assets
February 25, 2003
Page Two
In the prior year, we noted that fixed assets purchased during the year were not
marked in any way as required by the Rules of the Auditor General. While we
noted again in the current year that the City did not have these procedures in
place, the City did approve the purchase of a bar coding system for the 2002 fiscal
year and plans to have all assets tagged with bar codes by September 30, 2002.
We recommend that management continue this process to ensure compliance with
applicable requirements and safeguarding of City -owned assets.
Corrective Action
The City did purchase a bar coding system and is using it. No further comment is
needed for fixed assets.
2. Financial Condition Assessment
As required by Rules of the Auditor General (Sections 10.554 (g)(6)c and 10.566),
we applied financial condition assessment procedures. While the overall results of
the prescribed procedures were inconclusive, we did note several unfavorable
trends or comparisons. The City's unreserved general fund balance at September
30, 2001 equals approximately 8% of current general fund operating expenditures
for the fiscal year then ended, and has decreased more than $2,700,000 since
September 30, 1999. We understand that the predominant uses of these funds
were for capital outlay purposes, and were authorized by the City Council with the
knowledge of the reduction in the general fund balance. The City's general fund
cash and investments balances have decreased similarly over this period. During
the 2002 fiscal year the City has issued ten (10) year bank notes for the purpose of
specific planned capital outlay projects. We recommend that the City monitor the
unreserved general fund balance, and set goals for unreserved general fund
balance as a percentage of operating expenditures. While we realize that there is
no exact guidance for goals of this sort, we recommend 10 -20% as a starting point
and that the City establish a plan and timetable for reaching set goals. We also
recommend that the City consider the use of a capital projects fund to assist in
tracking the pending capital projects activity and related funds. We have also
noted that the City's water and sewer bond service coverage ratios, while in
compliance with the coverage limits as required by the City's bond covenants,
have decreased from the prior year. In light of the recent increase in subordinate
water and sewer debt, it is very important that the City actively monitor these
coverage ratios and trends to ensure continued compliance with covenants.
Corrective Action
The City's ratio of unreserved general fund balance to current general fund
operating expenditures for the fiscal year ending September 30, 2002 is less than
7 %. The City's general fund cash and investments balances in relation to
expenditures also continues to be low. The City did establish a capital projects
fund in 2002 to keep track of capital projects activities.
u
75
Management Comments
City of Edgewater, Florida
February 25, 2003
Page Three
Also, the City is in compliance with the coverage limits required by the City's bond
covenants for water and sewer bonds for 2002, however, since subordinate water
and s ewer d ebt w as issued i n 2 002, t he C ity n eeds t o m onitor t hese coverage
ratios to ensure continued compliance. We will address these comments under
current year recommendations.
' 3. Investment of Public Funds
During our review of the City's investment policy, we noted that the policy did not
provide requirements for continuing education in courses of study related to
investment practices and products as required in Section 218.415, Florida
Statutes. We recommend that the City review and revise its investment policy as
necessary to ensure compliance with Section 218.415, Florida Statutes and to
properly safeguard assets.
Corrective Action
The City amended their investment policy in 2002 and it is now in compliance with
Florida Statutes Section 218.415. However, the City did not meet the continuing
education requirements until after September 30, 2002.
4. Business Continuity Planninq
The City does not currently have a comprehensive City -wide business continuity
plan. Without appropriate business continuity plans, the City may be unable to
continue key system processes. In addition, personnel may be unaware of their
role in the continuation of the business in the event of a disaster or significant
system outage. As a result, business processes can be unnecessarily interrupted,
valuable recovery time may be lost, and revenues and customer satisfaction can
be lost due to confusion and lack of information on responsibilities in the event of a
disaster.
Business continuity is highly dependent on the uninterrupted flow of information,
t both i nternally a nd a xternally. P rotection f rom u nexpected I oss o r d isruption of
information processing resources and business functions is a vital issue. The
threats to business continuity include both natural disasters such as floods, fires,
and storms and intentional sabotage by hackers or computer viruses.
Management should develop and document a formal City -wide business continuity
plan that provides for the recovery of data server and network operations,
prevention of disruptions, and recovery of all critical business functions. The plan
should include cost estimates and detailed instructions for recovery.
Corrective Action
The City has not developed a business continuity plan. Management does not
believe this recommendation is practical to implement at this time.
I
1 76
Management Comments February 25, 2003 Sk
City of Edgewater, Florida Page Four
B. Current Year Recommendations
1. Financial Condition Assessment
The City continued to have some unfavorable ratios when the Auditor General
financial condition assessment procedures were applied. The City's ratio of
unreserved general fund balance to operating expenditures of the general fund for
2002 is less than 7 %. In addition, the City's general fund cash and investments
balances in relation to expenditures also continues to be low. We did note that
there was an excess of revenues over expenditures of $32,060 in the General
Fund for 2002 compared to large deficits of revenues over expenditures in the past
two prior years. This is a favorable trend that the City should continue. The City
Council did increase the property tax millage rate for fiscal year ending September
30, 2003, which should have a favorable impact on the financial condition of the
City.
Recommendation
We recommend the City set some goals to increase the ratio of unreserved
general fund balance to general fund operating expenditures to at least 10 -20 %.
By doing this the other ratio of cash to expenditures will automatically increase.
im
2. Water and Sewer Revenue Bond Coverage
The City is in compliance with the water and
but as noted in prior year comments, this
years. Actually, there was a slight increa
Waterway Park special assessments being
probably go back down in 2003 since
assessments will be collected over ten years.
sewer bond coverage requirements,
coverage has decreased from prior
se coverage in 2002 due to some
paid in full. However, coverage will
remaining Waterway Park special
Recommendation
Since the City issued subordinate water and sewer debt in 2002, their debt service
requirements will increase in 2003. We recommend the City monitor the coverage
ratios including the new debt to ensure continued compliance with covenants.
3. Investment Policy
The City's investment policy was revised in
Florida Statutes, however, the City did
requirements until after September 30, 2002.
Recommendation
2002 to comply with Section 218.415,
not meet the continuing education
We recommend the City make sure they get at least 8 hours per year of continuing
education.
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a m Management Comments
City of Edgewater, Florida
aw
February 25, 2003
Page Five
4. Excess Expenditures Over Appropriations
ii.
Actual expenditures exceeded appropriations in the following funds: Special Law
Enforcement Trust Special Revenue Fund, $789; Recreation Impact Fees Special
`.. Revenue Fund, $4065; and the Capital Projects Fund $4,967,147. All of the above
funds had revenue and funds available to cover the expenditures.
Recommendation
I.
We recommend the City amend the budget during the year so that expenditures do
not exceed appropriations.
C. Comments Required by the Rules of the Auditor General
1K 1. The financial report filed with the Department of Banking and Finance pursuant to
Section 218.32(1)(b), Florida Statutes, is in agreement in all material respects with
the annual financial audit report for the same period.
2. The City is not, or during the fiscal year was not, in a state of financial emergency
as a consequence of conditions described in Section 218.503(1) Florida Statutes.
3. The City of Edgewater, Florida, has complied with Section 218.415, Florida
Statutes, regarding the investment of public funds, except as noted above.
4. As required by the Rules of the Auditor General Section 10.554(g)(6)c and
10.556(8), we applied financial condition assessment procedures.
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