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FY 1989 CAFRCITY OF EDG EWATER, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED September 30, 1989 EDGEWATER VETERANS MEMORIAL PARK MARCH 1989 INTRODUCTORY SECTION 1 CITY OF EDGEWATER, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1989 � I I I I I 1 II Prepared by: Finance Department Ferdinand Munoz, Finance Director CITY OF EDGEWATER, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1989 MAYOR David L. Mitchum CITY COUNCIL Zone 1 - Dan K. Hatfield Zone 2 - Gigi Bennington Zone 3 - Russell A. Gold Zone 4 - Thomas A Fish CITY MANAGER Elly F. Johnson CITY ATTORNEY Jose' B. Alvarez CITY AUDITORS Ernst & Young - iii - CITY OF EDGEWATER, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS IN tODUCTORY SECTION PRINCIPAL CITY OFFICIALS TABLE OF CONTENTS v -Vi CERTIFICATE OF ACHIEVEMENT ix ORGANIZATION CHART xiii LETTER OF TRANSMITTAL 1 - 8 FINANCIAL SECTION I— REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 13 GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) Combined Balance Sheet - All Fund Types and Account Groups 16-21 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 22-23 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 24 -25 Combined Statement of Revenues, Expenses and Changes in Retained Earnings /Fund Balances - All Proprietary and Similar Fiduciary Fund Types 26-27 Combined Statement of Changes in Financial Position - All Proprietary and Similar Fiduciary Fund Types 28-29 Notes to Financial Statements 32-56 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Proprietary Fund Type: Enterprise Funds - '� Combining Balance Sheet 60-61 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 62-63 Combining Statement of Changes in Financial Position 64-65 Fiduciary Fund Types: Combining Balance Sheet - All Fiduciary Funds 68 Combining Statement of Revenues, Expenses and Changes in Fund Balances - All Pension Trust Funds 69 Combining Statement of Changes in Financial Position - .. All Pension Trust Funds 70 Statement of Changes in Assets and Liabilities - Agency Fund 71 -v- M SUPPORTING SCHEDULES General Fund: Schedule of Revenues and Other Financing Sources - Budget and Actual 74-75 Schedule of Expenditures and Other Financing Uses - Budget and Actual 76-78 Water and Sewer Fund: Schedule of Revenues and Contributions - Budget and Actual 79 Schedule of Expenditures and Transfers - Budget and Actual 80 Required Supplementary Information: Schedule of Revenues by Source and Expenses by Type - Police Officers' Retirement Trust Fund 81 Schedule of Revenues by Source and Expenses by Type - General Employees' Pension Fund 82 STATISTICAL SECTION STATISTICAL INFORMATION Comment Relative to Statistical Section 87 Table I - General Governmental Expenditures by Function 88-89 Table II - General Governmental Revenues by Source 90-91 Table III - Property Tax Levies and Collections 92 Table IV - Assessed and Estimated Actual Value of Taxable Property 93 Table V - Property Tax Rates - All Overlapping Governments 94 Table VI - Special Assessments Collections 95 Table VII - Computation of Overlapping Debt % Table VIII - Demographic Statistics 97 Table IX - Property Value, Construction and Bank Deposits 98 Table X - Summary of Ten Largest Single Unit Water Users 99 Table XI - Principal Taxpayers 100 Table XII - Miscellaneous Statistical Data 101 D1 . . �. . Report on Internal Accounting Controls and Management Comments 105-108 Report on Compliance 109 Report on Compliance with CPE Requirements 111 -v1- M am MW MW s. .. W& am M M. aft- i J 1 [l 1 1 CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING CITY OF EDGEWATER, FLORIDA CERTIFICATE OF ACHIEVEMENT for the year ended September 30, 1988 1 The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Edgewater, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 1988. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. 9 - viii - ■ 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, 1988 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 (CAFR's) achieve the highest standards in government accounting and financial reporting. President 4 P2(� zeree Executive Director -1X- 1 1 1 1 1 I L 1 1 1 rl 1 1 1 ORGANIZATION CHART CITY OF EDGEWATER, FLORIDA ORGANIZATION CHART Mayor/ city camcil W � �� I 9 �lm Finanoe and I I Public I I I city I I Plaming, E Admi ni stra tim Library Clerk mg and Development Enforcement I Resc ue Service I I Defense I I Enforcement Parks and I I Public I I utilities I I Collection ReGL'�eat1CY1 Works - Xiii - u 1 1 � I 1 n 1 1 1 I L 1 LETTER OF IMANSNIITTAL 0 CITY OF EDGEWATER aw 104 N. RIVERSIDE DRIVE P.O. Box 100 - Edgewater, Florida 32132 -0100 (904) 428 -3245 SunCom 371 -7005 March 19, 1990 r Honorable Mayor David L. Mitchum 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, 1989, is submitted herewith pursuant to Section 49 of the City Charter and 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 three sections: introductory, financial and statistical. 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 multiyear basis. 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; sanitation services; the construction and maintenance of highways, streets, and infrastructure; recreational activities and cultural events. In addition to general government activities, the City Council exercises, or has the ability to exercise, oversight of the Police Officers' and General Employees' Retirement Systems; therefore, these activities are included in the reporting entity. However, the Volusia County School District, St. Johns River Water Management District and various agencies of the County have not met the established criteria for inclusion in the reporting entity and, accordingly are excluded from this report. Ll Honorable Mayor David L. Mitchum and Members of the City Council City of Edgewater, Florida Page 2 March 19, 1990 ECONOMIC CONDITION AND OUTLOOK The government is located in southeast Volusia County, adjacent to I -95 and just south of New Smyrna Beach, along the Indian River and two miles west of the Atlantic Ocean. The City is within the economic zone of Central Florida which roughly follows Interstate 4 from Tampa through Orlando to the communities along the Atlantic coast in Volusia County. Growth along the Atlantic coast has been exceptional and is expected to continue into the 1990s. Edgewater has experienced a high rate of growth in the last five years. Edgewater's population during that period increased from 8,879 to 13,313, a 49.9% increase for the period or an average of 8.44% per year over the last five years. A large paint factory, a thriving building industry, boat building, garment factories and other light manufacturing provide employment. The community currently has a 5.1 %n unemployment rate as compared to a state rate of 5.6 %. During the past three years, property tax assessments have increased 51.95 %. Growth trends are expected to continue. Maintaining service delivery to the citizens of Edgewater will be met through the Capital Improvement Program being implemented. MAJOR INITIATIVES For the Year. A new IBM -RT computer system was purchased to enable the distribution of computer processing and increase operating efficiencies. In addition, three personal computers were also purchased for the offices of the City Manager, City Clerk and the Superintendent of Public Works. The City Council hired a financial advisor and underwriter and negotiated the sale of a $4,700,000 Bond Anticipation Note (BAN). The proceeds of the loan are the seed money for the implementation of the Capital Improvement Program. For the Future. A new Stormwater Management Utility was created in October 1989. The department will be responsible for handling drainage problems and will be guided by the soon to be completed Stormwater Master Plan. V Honorable Mayor David L. Mitchum and Members of the City Council City of Edgewater, Florida Page 3 March 19, 1990 A separate financial consultant will be hired to advise the City Council on the bond market and how to finance the numerous projects in the Capital Improvement Program. The consultant will also advise the council on the potential benefits of refunding older bonds so as to change or reduce the terms, 6 conditions and restrictive covenants of these issues. The purchase of approximately 50 acres to the west of the City limits has been completed and will be the site for the Western Water Treatment Plant and the expansion of water wellfields. 6 Design of the Western Water Treatment Plant, Western Water Wellfield Expansion, Water Transmission Mains, Wastewater Treatment Plant Upgrade and Expansion, and Wastewater Collection System is currently in progress. Additionally, various engineering design work for infrastructure improvements (water, wastewater, stormwater and paving) for the Florida Shores area is also in progress. These projects will place the City in an excellent position to meet the growth needs of the future. Department Focus. Trash services were moved from the General Fund to the Refuse Fund to achieve operating efficiencies and to properly allocate the cost to the users. An engineering position was approved by the Council for 1990 to cost - effectively #" handle selected tasks presently done by the City's outside engineers and to provide in -house expertise during the design and construction of the major infrastructure G improvements mentioned above. A full time Fire Department is in place for 1990. The Volunteer Fire Department will continue to be a vital part of the City's fire protection service. FINANCIAL INFORMATION to Management of the City 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 6' 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, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. r 60 Honorable Mayor David L. Mitchum and Members of the City Council City of Edgewater, Florida Page 4 March 19, 1990 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. Activities of the General Fund are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department within an individual fund. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year end. However, encumbrances generally are reappropriated 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 financial management. General Government Functions. The following schedule presents a summary of General, Special Revenue and Capital Projects Fund revenues for the fiscal year ended September 30, 1989 and the amount and percentage of increases and decreases in relation to prior year revenues. The assessed valuation of property subject to ad valorem taxes on the 1988 tax rolls amounted to $332.0 million, an increase of $27.5 million or 9.03% over $304.5 million the preceding year. Total exempt values increased $7.6 million from $91.5 million to $99.1 million on the 1988 tax rolls. This increase is primarily the result of the effect of the $25,000 homestead exemption on single family housing which totaled $91.1 million. a* kI WK 0 so Uft INCREASE REVENUE SOURCE PERCENT (DECREASE) AMOUNT OF TOTAL FROM 1988 Taxes $ 2,630,784 66.84% $ 805,975 Licenses and permits 209,853 5.33 44,362 Intergovernmental revenues 522,700 13.28 (581,015) Charges for services 275,850 7.01 30,064 Fines and forfeitures 98,124 2.49 11,303 Miscellaneous revenues 198,693 5,05 85,334 TOTALS $ 3,936,004 100.00% $ 396,023 Revenues for general government functions totaled $3,936,004 for the fiscal year ended September 30, 1989, an increase of 11.19% over fiscal year 1988. General property taxes produced 30.30% and intergovernmental revenues produced 13.28% of the general revenues, compared to 36.64% and 31.18 %, respectively, in 1988. The assessed valuation of property subject to ad valorem taxes on the 1988 tax rolls amounted to $332.0 million, an increase of $27.5 million or 9.03% over $304.5 million the preceding year. Total exempt values increased $7.6 million from $91.5 million to $99.1 million on the 1988 tax rolls. This increase is primarily the result of the effect of the $25,000 homestead exemption on single family housing which totaled $91.1 million. a* kI WK 0 so Uft 61 Honorable Mayor David L. Mitchum and Members of the City Council City of Edgewater, Florida Page 5 March 19, 1990 Fiscal 1989 property tax collections were 96.81% of the tax levy, a decrease of .88% over last years 97.69% collection percent. This is the twelfth consecutive year in which property tax collections have exceeded 96% of the tax levy. Delinquent taxes uncollected increased $1,571 over last years $22,677 which represented 1.83% of the 1988 tax levy. See Table V in the statistical section of this report for a summary of the City's property tax millage rates for the last ten years. L The following schedule presents a summary of General, Special Revenue and Capital Projects Fund expenditures for the fiscal year ended September 30, 1989 and the percentage of increases and decreases in relation to prior year L governmental fund amounts. INCREASE PERCENT (DECREASE) FUNCTION AMOUNT OF TOTAL FROM 1988 General Government $ 686,494 18.2% $ 118 Public Safety 1,283,362 33.9 166 Transportation 758,808 20.0 143 ' Culture/Recreation 303,404 8.0 68 Claims and Judgements (31) Debt Service %W .2 9 Capital Outlay 741.312 19.7 (36 TOTALS $ 3,782,620 100.0% $ 437 Expenditures for the General Fund totaled $3,782,620, an increase of 10.15% over the previous year's expenditures. Decreased expenditures in the culture /recreation function were primarily due to the cost of constructing a new library which was completed during the previous year. The expenditures also increased in the public safety function primarily as a result of increased salary and the need to acquire additional equipment. Governmental Find Balances. Unreserved fund balances in the General Fund have continued to be maintained at adequate levels during the year. The General Fund's unreserved fund balance of $727,877 was up $328,032 from last year. The increase was primarily the result of recording utility service taxes in the General Fund. Utility service taxes were used to subsidize the Water and Sewer Fund prior to 1989. A Capital Projects Fund, started in anticipation of subsequent year revenue collections, developed a negative $87,121 fund balance. This amount will be liquidated upon receipt of stormwater management charges to fund the project. 6W Honorable Mayor David L. Mitchum and Members of the City Council City of Edgewater, Florida Page 6 March 19, 1990 Cash Management. Residual cash held during the year was invested in time deposits ranging from 1 to 90 days to maturity including certificates of deposit and money market certificates. At year end, investment yields ranged from a low of 8% to a high of 9.6 %. Interest earnings for the year, excluding earnings from pension trust fund investments, totaled $360,475. Debt Administration. The City's general long -term debt totaled $382,905 at September 30, 1989. The debt consisted of the long -term portions of expected employee benefits payable in future periods and capital lease obligations for fire equipment purchased during the year and a note payable for a computer system. The City's Water and Sewer Fund long -term debt net of current maturities totaled $1,360,777 at September 30, 1989, and consisted of the following: 1964 Waterworks and Sewer System Refunding and Improvement Revenue Bonds, Series B $ 683,000 Note Payable - City of Gulf Breeze, Florida, Local Government Loan Program 640,000 Accrued vacation and sick leave QF7 r7"" TOTAL LONG -TERM DEBT 1360,777 On July 11, 1989, the City entered into a note payable with a local financial institution for $4,700,000. The proceeds are to provide for the initial costs to improve water and sewer system facilities and to pay certain costs of issuance on the bonds. Principal and interest are due within one year from the date of the note. The note provides for an interest rate of 6.67 %. The note is secured by the proceeds of a planned bond issue. At present, no decision has been made as to the amount of the bonds to be issued, yet preliminary estimates of project costs indicate that total funds needed will be in the mid $30,000,000 range. The bonds are to be sold no later than July 1990. The note is also secured by a pledge of the City's water and sewer system revenues which shall be subordinate to existing senior and subordinated debt obligations. Utility Operations. The City's Water and Sewer Fund operations continue to report consistent gains in operating revenues and in the number of new customers connecting to the utility system. r r Honorable Mayor David L. Mitchum L and Members of the City Council City of Edgewater, Florida Page 7 L March 19, 1990 Effective October 1988, the City amended its utility rate structure to ensure that water and sewer utility revenues derived exclusively from its customer base would be sufficient to (1) fund its operating expenses, (2) fund its annual debt service requirements, and (3) provide net income necessary to fund the City's routine future capital investment needs for the year. Similarly, the utility tax revenues previously received in the utility fund were budgeted to be recognized in the General Fund where they will be used to finance the cost of providing traditional governmental services. Financial performance of the utility improved considerably over the prior year. Operating losses of $441,807 in 1988 were replaced with operating income of $297,820 in 1989. Furthermore, the City was able to reduce the subsidy of utility service taxes amounting to $441,444 in the 1988 fiscal year to zero in 1989, thereby freeing this revenue to general governmental purposes. Pension Trust Funds. The Municipal Police Officers' Retirement Trust Fund was created by Ordinance under the provisions of Chapter 185, Florida Statutes. During the year, revenues were derived from State of Florida contributions of $35,528, interest and dividend earnings of $35,593 and employee contributions of $4,627. At September 30, 1989, the fund balance was $408,794. The General Employees' Pension Trust Fund includes all City employees, except police officers. This plan, as well as the Police Officer's plan, are administered as Immediate Participation Guarantee Contracts by Principal Mutual Life Insurance Company. During the year, the City contributed $126,021 to the general employees' plan, while interest and dividend earnings were $79,511. At September 30, 1989, the fund balance was $919,485. 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 Fund 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 auditing standards. As of September 30, 1989, the general fixed assets of the City amounted to $6,289,574. 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. Honorable Mayor David L. Mitchum and Members of the City Council City of Edgewater, Florida Page 8 March 19, 1990 OTHER INFORMATION Independent Audit. State Statutes require an annual audit by independent certified public accountants. The accounting firm of Ernst & Young was selected by the City Council. The audit was designed to meet the requirements set forth in State Statutes. The auditor's report on the general purpose financial statements is included in the financial section of this report. Awards. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the government for its comprehensive annual financial report for the fiscal year ended September 30, 1988. This was the sixth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 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, without the leadership and support of the City Council, preparation of this report would not have been possible. Sincerely, Mr. Ell F. hnson City Mana Mr. Ferdinand Munoz Finance Director 'J 1 1 FINANCIAL SECTION MW This Section is composed of the following four parts: AM REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS GENERAL PURPOSE FINANCIAL STATEMENTS WW NOTES TO FINANCIAL STATEMENTS COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES mw MIN am REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S ME r AN mm t Ernst &Young Box N 149 South Ridgewood Avenue Daytona Beach, Florida 32114 Telephone: (904) 255 -1981 Fax: (904) 255 -8030 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Honorable Mayor, City Council and City Manager City of Edgewater, Florida We have audited the accompanying general purpose financial statements of the City of Edgewater, Florida as of September 30, 1989 and for the year then ended. These general purpose financial statements are the responsibility of City of Edgewater, Florida management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. 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 and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 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 at September 30, 1989, and the results of operations and the changes in financial position of its proprietary fund type and pension trust funds for the year then ended in conformity with generally accepted accounting principles. W ft Our audit has been made primarily for the purpose of expressing an opinion on the general purpose financial statements taken as a whole. The combining, individual fund financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Edgewater, Florida. Such additional information has been subjected to the procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical section has not been subjected to the procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion. December 14, 1989 1 � 13. IN 1 P, GENERAL PURPOSE FINANCIAL STA (COMBINED STA - OVERVIEW) The diverse nature of a governmental operation and the necessity of complying with legal provisions require accounting systems unlike those commonly used by commercial enterprises. Rather than establishing a single unified set of accounts for recording and summarizing all financial transactions, the accounts of a governmental unit are organized on the basis of funds or account groups. The general purpose financial statements were prepared to allow the user of the financial report to obtain an overview and broad perspective of the City's financial position ahead of the comparable data on a detailed basis by individual funds. no CITY OF EDGEWATER, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1989 ASS ETS Pooled cash and investments Investments Cash and investments with trustee Receivables: Taxes Accounts Unbilled accounts Accrued interest Special assessments Due from other funds Due from other governments Inventory Prepaids Restricted assets: Customer deposits Sinking Fund - Cash and investments Accrued interest Renewal and Replacement Fund - Investments Development Fund - Cash and investments Accrued interest Construction Fund - Investments Accrued interest Advances to other funds Land Buildings Improvements Machinery and equipment Accumulated depreciation Construction in progress Unamortized bond issuance costs Amount to be provided for retirement of general long -term debt TOTAL ASSETS 1 F UND-TU _ SPECIAL CAPITAL GENERAL REVENUE PROJECTS $ 1,168,309 $ 24,249 - - 54,303 - - 12,307 - - 29,635 - - 16,459 - - 23,246 - - 9,406 - - 6,105 - - 36,227 - - $ 1,380,246 $ See accompanying notes. 16. so .m WN PAGE 1 OF 3 PROPRIETARY FIDUCIARY FUND TYPES FUND TYPE ACCOUNT GROUPS TRUST GENERAL GENERAL TOTALS INTERNAL AND FIXED LONG -TERM (MEMORANDUM ONLY) ENTERPRISE SERVICE AGENCY ASSETS DE3T 1989 1988 $1,721,155 $ 64,246 $ - $ - $ - $ 2,953,710 $ 1,991,667 - 775,000 1,328,279 - - 2,103,279 3,315,665 - - 800 - - 800 - - - - - - 24,249 22,679 129,045 - - - - 183,348 89,806 102,440 - - - - 102,440 86,236 - 4,409 - - - 16,716 8,389 - - - - - 29,635 38,516 - - - - - 16,459 - - - - - - 23,246 113,651 34,687 - - - - 44,093 54,511 - - - - - 6,105 1,908 ;r , 201,731 - - - - 201,731 188,975 170,611 - - - _ 170,611 270,336 541 541 ' 114,208 - - - - 114,208 85,826 633,899 - - - - 633,899 321,016 2,163 - - - - 2,163 - 3,978,317 - - - - 3,978,317 - 18,412 - - - - 18,412 - 36,227 ' 546,209 - - 9,809 74 - 1,296,018 777,701 8,626,463 - - 1,269,287 - 9,895,750 8,280,440 - - - 2,264,168 - 2,264,168 2,322,422 666,830 _ _ 1,999,751 - 2,666,581 2,165,704 (2 (2,226,310) (1,976,517) 767,582 - - 6,559 - 774,141 277,206 49,377 - - - - 49,377 5,663 - $15,537,360 - $__843,655 - $ 1,329,079 - $ 6,289,574 382,905 $ 382,905 382,905 $25762 19 85,594 $ 18,527,394 ' 17. CITY OF EDGEWATER, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1989 LIABILITIES AND FUND EQUITY LIABILITIES Interfund overdraft - pooled cash and investments Accounts payable Accrued liabilities Claims payable Accrued interest Payable from restricted assets: Accounts payable Customer deposits Accrued interest payable Revenue bonds payable Notes payable Deferred revenue Refundable deposits Maintenance bonds Accumulated compensated absences Revenue bonds payable Notes payable Obligations under capital lease Due to other funds Advances from other funds Deferred compensation TOTAL LIABILITIES GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS 40,203 - 34,435 131,785 - - 9,240 - - 103,541 - 225 - - - 16,459 36,227 284,994 - 87,121 See accompanying notes. PAGE 2OF3 " PROPRIETARY FIDUCIARY GROUPS FUND TYPES FUND TYPE TRUST ACCOUNT GENERAL GENERAL TOTALS INTERNAL AND FIXED LONG -TERM (MEMORANDUM ONLY) ENTERPRISE SERVICE AGENCY ASSETS DEBT 1989 1988 $ - $ - $ - $ - $ - $ - $ 1,474,454 227,261 - - - - 301,899 109,677 69,216 - - - - 201,001 162,722 - 624 - - - 624 - 55,291 - - - - 64,531 - 201,731 - - - - 201,731 188,975 21,486 - - - - 21,486 9,448 62,000 - - - - 62,000 60,000 4,700,000 10,000 - - - - 4,700,000 250,000 10,000 - - - - - 103,541 79,530 _ - 225 100 - 12,000 51,583 - 105,705 157,288 126,761 683,000 - - - - 683,000 650,000 640,000 66,000 706,000 745,000 - - - 211,200 211,200 - - - - - 16,459 - - - 800 - - 36,227 800 - 6,721,568 624 800 - 382,905 7.478,012 3,868,667 ' 19. CITY OF EDGEWATER, FLORIDA COMBINED'BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1989 FUND EQUITY Contributed capital: Contributions from governmental agencies Contributions from customers Contributions - other Investment in general fixed assets Retained earnings: Reserved for renewal and replacement Reserved for revenue bond retirement. Reserved for self - insurance Reserved for equipment purchases Unreserved Fund balances: Reserved for land, parks and open spaces Reserved for inventories Reserved for prepaids Reserved for encumbrances Reserved for police and fire pensions Reserved for advances to other funds Reserved for Department of Natural Resource Grant Reserved for law enforcement trust Reserved for other Unreserved - Undesignated - (deficit) TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY SPECIAL CAPITAL GENERAL REVENUE PROJECTS 213,379 9,406 6,105 32,460 36,227 - - 39,686 - - 4,646 - - 25,466 - - 727,877 - (87,121 1,095,252 - (87,121) $ 1,380,246 $ - $ - See accompanying notes. 20. om PAGE 3 OF 3 PROPRIETARY FUND TYPES INTERNAL ENTERPRISE SERVICE FIDUCIARY FUND TYPE TRUST AND AGENCY ACCOUNT GROUPS GENERAL GENERAL FIXED LONG -TERM ASSETS DEBT TOTALS (MEMORANDUM ONLY) 1989 1988 $ 714,812 $ - $ - $ - $ - $ 714,812 $ 714,812 4,589,803 - - - - 4,589,803 3,909,842 1,193,062 - - - - 1,193,062 - - - - 6,289,574 - 6,289,574 5,657,763 L 50,000 - - - - 50,000 50,000 77,666 - - - - 77,666 200,888 - 843,031 843,031 638,427 64,208 - - - 64,208 81,098 2,126,241 - - - - 2,126,241 1,663,077 - - - - - 213,379 150,727 - 9,406 8,967 - - - - - 6,105 1,677 - - - 32,460 91,867 = 1,328,279 _ 1,328,279 1,073,413 - - - - - 36,227 - ' - - - - - 39,686 - - - - - - 4,646 - - - - - - 25,466 16,324 } ar. - - - - - 640.756 399,845 8,815,792 843,031 $15,537,360 $ 843,655 1.328279 $ 1,329,079 6,289-57A - $ 6,289,574 $ 382,905 18,228 ,807 $ 25,762,819 14,658,727 $ 18,527,394 21. CITY OF EDGEWATER, FLORIDA PAGE 1 OF 2 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDEI) SEPTEMBER 30, 1989 TOTALS SPECIAL CAPITAL (MEMORANDUM ONLY) GENERAL REVENUE PROJECTS 1989 1988 REVENUES Taxes $ 2,630,784 $ - $ - $ 2,630,784 $ 2,213,577 Licenses and permits 209,853 - - 209,853 165,491 Intergovernmental revenues 522,700 - - 522,700 714,947 Charges for services 275,850 - - 275,850 245,786 Fines and forfeitures 98,124 - - 98,124 86,821 Miscellaneous revenues 198,693 - - 198,693 113,359 TOTAL REVENUES 3,936,004 - - 3,936.004 3,539,981 EXPENDITURES Current: General Government 686,494 - - 686,494 586,022 Public Safety 1,283,362 - - 1,283,362 1,117,322 Transportation 758,808 - - 758,808 615,827 Culture /Recreation 303,404 - - 303,404 242,247 Claims and judgements - - - - 30,796 Capital outlay 741,312 1,239 87,121 829,672 841,779 Debt service: Interest 9.240 - - 9,240 - TOTAL EXPENDITURES 3,782,620 1,239 87,121 3,870,980 3,433,993 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 153,384 (1,239 (87,121) 65,024 105,988 OTHER FINANCING SOURCES (USES) Operating transfers in 106,500 - - 106,500 50,000 Operating transfers out (110,000) - - (110,000) (220,000) Proceeds from capital lease 211,200 - - 211,200 - Proceeds from long -term debt 66 OOQ - - 66,000 - TOTAL OTHER FINANCING SOURCES (USES) 273,700 - - 273,700 (170,000) See accompanying notes. 22. CITY OF EDGEWATER, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30, 1989 PAGE 2 OF 2 TOTALS SPECIAL CAPITAL (MEMORANDUM ONLY) GENERAL REVENUE PROTECTS 1989 1988 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 427,084 (1,239) (87,121) 338,724 (64,012) FUND BALANCES AT BEGINNING OF YEAR 668,168 1,239 - 669,407 733.419 FUND BALANCES AT END OF YEAR - (deficit) $ 1,095,252 $ - $ (87,121 $ 1,008,131 $ 669,407 See accompanying notes. 23. CITY OF EDGEWATER, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1989 REVENUES Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Miscellaneous revenues TOTAL REVENUES EXPENDITURES Current: General Government Public Safety Transportation Culture /Recreation Claims and judgements Capital outlay Debt service interest TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out Proceeds from capital lease Proceeds from long -term debt TOTAL OTHER FINANCING SOURCES (USES) PAGE 1 OF 2 $ 2,654,752 $ 2,630,784 $ (23,968) 156,550 1988 GENERAL FUND TOTALS VARIANCE (MEMO - FAVORABLE RANDUM (UN- ONLY) BUDGET ACTUAL FAVORABLE) ACTUAL - $ 2,654,752 $ 2,630,784 $ (23,968) 156,550 209,853 53,303 551,760 522,700 (29,060) 173,000 275,850 102,850 74,000 98,124 24,12A 65-991 198,693 132,702 3,676.053 3,936,004 259,951 702,646 686,494 16,152 1,345,854 1,283,362 62,492 765,862 758,808 7,054 327,641 303,404 24,237 874,860 741,312 133,548 - 9,240 (9.240 4,016,863 3,782,620 234,243 $ 2,213,577 165,491 714,947 245,786 86,821 113.359 w* r -� 586,022 1,117,322 615,827 242,247 30,796 841,779 3,433.993 106,500 106,500 - 50,000 (110,000) (110,000) - (220,000) 211,200 66.000 211,200 - - 66.000 - _ 273,700 273,700 - (170,000 See accompanying notes. qw CITY OF EDGEWATER, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1989 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDI- TURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR PAGE 2 OF 2 1988 GENERAL FUND TOTALS VARIANCE (MEMO - FAVORABLE RANDUM (UN- ONLY) BUDGET ACTUAL FAVORABLE) ACTUAL (67,110) 427,084 494,194 (64,012) 668,168 $ 601,058 668,168 - 494 732,180 $ 668,168 $1 2 See accompanying notes. 25. M CITY OF EDGEWATER, FLORIDA PAGE 1 OF 2 COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS /FUND BALANCES ALL PROPRIETARY AND SIMILAR FIDUCIARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1989 PROPRIETARY FIDUCIARY .� FUND TYPES FUND TYPE TOTALS INTERNAL PENSION (MEMORANDUM ONLY) ENTERPRISE SERVICE TRUST 1989 1988 OPERATING REVENUES Charges for services $ 2,169,823 $ - $ - $ 2,169,823 $ 1,486,815 Interest - - 115,104 115,104 129,214 a Contributions - - 166.176 166.176 153,848 TOTAL OPERATING REVENUES 2,169,823 - 281,280 2.451,103 1,769,877 OPERATING EXPENSES Personal services 987,623 - - 988,394 831,397 Contractual services 128,864 4,407 9,576 142,847 143,342 Operating supplies and expenses 347,870 771 - 347,870 354,884 Repairs and maintenance 82,892 - - 82,892 270,662 Claims and judgements - 6,249 - 6,249 985 Benefit payments - - 16,838 16,838 14.066 TOTAL OPERATING EXPENSES 1.547,249 11,427 26,414 1-585-090 1,61 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 622,574 (11,427) 254,866 866,013 154,541 LESS: DEPRECIATION EXPENSE 258,929 - - 258,929 255,162 OPERATING INCOME (LOSS) 363,645 (11,427) 254,866 607,084 (100,621 NONOPERATING REVENUES (EXPENSES) Interest revenue 194,000 66,031 - 260,031 138,037 Utility services taxes - - - - 441,444 Miscellaneous revenue 6,480 - - 6,480 9,387 Interest (amortization expense) (96,216) - - (96,216) (113,307) Gain on disposal of equipment 1.643 - - 1,643 - .. TOTAL NONOPERATING REVENUES (EXPENSES) 105,90 66,031 - 171,938 475,561 See accompanying notes. .. 26. CITY OF EDGEWATER, FLORIDA PAGE 2 OF 2 COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS /FUND BALANCES ALL PROPRIETARY AND SIMILAR FIDUCIARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1989 PROPRIETARY FIDUCIARY FUND TYP FUND TYPE TOTALS INTERNAL PENSION (MEMORANDUM ONLY) ENTERPRISE SEMCE TRUST 1989 1w 11 1 L INCOME BEFORE OPERATING TRANSFERS 469,552 54,604 254,866 779,022 374,940 OPERATING TRANSFERS Operating transfers in (out) (146,500) 150,000 - 3.500 170,000 INCOME BEFORE EXTRAORDINARY ITEM 323,052 204,604 254,866 782,522 544,940 EXTRAORDINARY ITEM Gain on defeasance of debt - - - - 302,685 NET INCOME 323,052 204,604 254,866 782,522 847,625 RETAINED EARNINGS /FUND BALANCES AT BEGINNING OF YEAR 1,995-06a 638,427 1,073 3.706,903 2,859 -278 RETAINED EARNINGS /FUND BALANCES AT END OF YEAR 2,318,11 843,03 $ 1,328,279 $ 4,489,425 $ 3,706,903 See accompanying notes. 27. CITY OF EDGEWATER, FLORIDA PAGE 1 OF 2 COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY AND SIMILAR FIDUCIARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1989 PROPRIETARY FIDUCIARY FUND TYPES FUND TYPE TOTALS INTERNAL PENSION (MEMORANDUM ONLY) ENTERPRISE SERVICE TRUST 1989 1988 SOURCES OF WORKING CAPITAL .. From operations: Income before extraordinary item $ 323,052 $ 204,604 $ 254,866 $ 782,522 $ 544,940 .., Add: Expenses not creating current liabilities or using current assets - depreciation 258,929 - - 258,929 255,162 loss on disposal of fixed assets 746 - - 746 _ amortization 311 - _ 11 _ .. WORKING CAPITAL PROVIDED BY OPERATIONS BEFORE EXTRAORDINARY ITEM 583,038 204,604 254,866 1,042,508 800,102 Extraordinary item - gain from defeasance of debt - - - - 302,685 WORKING CAPITAL PROVIDED BY OPERATIONS 583,038 204,604 254,866 1,042,508 1,102,787 .Y Increase in other current liabilities payable from restricted assets 24,794 - - 24 - Contributions from customers 679,961 - - 679,961 550,554 Contributions - other 1,193,062 - - 1,193,062 - Reduction in construction in progress 13,348 - - 13,348 - Increase in noncurrent portion of employee compensated absences 10,416 - - 10,416 8,194 Decrease in current maturities of long -term debt - - - - 16,000 " Increase in current maturities of revenue bonds 62,000 - - 62,000 - Increase in current maturities of notes payable 10,000 - - 10,000 - Proceeds from bond anticipation note 4,700 - - 4.700,000 650,000 TOTAL SOURCES OF WORKING CAPITAL 7,276.619 204.604 254,866 7.736.089 2.327,535 See accompanying notes. 28. See accompanying notes. 29. CITY OF EDGEWATER, FLORIDA PAGE 2 OF 2 COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY AND SIMILAR FIDUCIARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1989 PROPRIETARY FIDUCIARY FUND TYPES FUND TYPE TOTALS INTERNAL PENSION (MEMORANDUM ONLY) ENTERPRISE SERVICE TRUST 1989 1988 APPLICATIONS OF WORKING CAPITAL Additions to land 20,698 - 20,698 - Additions to machinery and equipment 518,317 - - 518,317 Additions to utility plant 1,925,589 - - 1,925,589 348,701 Increase in restricted assets 4,225,347 - - 4,225,347 132,883 Increase in other assets 44,025 - - 44,025 5,663 Decrease in current liabilities payable from restricted assets - - - 24,900 Reduction of long -term debt 72,000 - - 72,000 1,211,000 Principal payments of long- term debt 250,000 - - 250,000 - Principal payments of revenue bonds 60,000 - - 60,000 - TOTAL APPLICATIONS OF WORKING CAPITAL 7,115.976 - - 7,115-976 1,723,147 INCREASE IN WORKING CAPITAL $ 160,643 $ 204,604 $ 254,866 $ 620,113 $ 604,388 CHANGES IN WORKING CAPITAL Increase (decrease) in current assets: Pooled cash and investments $ 369,380 $ 203,091 $ 254,866 $ 827,337 $ 581,598 Accounts receivable 62,201 - - 62,201 37,644 Accrued interest - 2,137 - 2,137 - Inventory (10,857) - - (10,857) 1,558 Prepaids - - - - (16,057 420,724 205,228 254,866 88 0,818 604.743 Increase (decrease) in current liabilities: Accounts payable 187,775 624 - 188,399 (1,650) Accrued liabilities 17,015 - - 17,015 2,005 Accrued interest 55,291 - - 55,291 �. 260,081 624 - 260,705 355 INCREASE IN WORKING CAPITAL $ 160,643 $ 204,604 $ 254,866 $ 620,113 $ 604,388 See accompanying notes. 29. 1 1 1 1 1 1 NOTES TO FINANCIAL STAIMEENTS 1 CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 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 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 generally accepted accounting principles as applicable to governments. The following is a summary of the significant policies. A. Reporting Entity: The accompanying financial statements present the financial position, results of operations and changes in financial position of the applicable fund types and account groups governed by the City Council of the City of Edgewater, Florida. The reporting entity for the City includes all functions of government in which the City Council exercises oversight responsibility. Oversight responsibility includes, but is not limited to, financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. As a result of applying the above reporting entity criteria, no component units exist in which the City has any oversight responsibilities which would require inclusion in the City's financial statements. The following overlapping governmental reporting entities are excluded from the City's financial statements because the City does not exercise any direct or indirect oversight responsibilities: Volusia County Volusia County School District St. Johns River Water Management District r f' 32. ? CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 L Special Revenue Fund - The Special Revenue Fund is used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally L restricted to expenditures for specified purposes. The Special Revenue Fund closed during the year ended September 30, 1989. L Capital Projects Fund - Capital Projects Funds are used to account for equipment replacement or the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust 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. Internal Service Fund - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost - reimbursement basis. 33. B. 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. The purposes of the City's various funds and account groups are as follows - Governmental Fund Types: General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources, except those required to be accounted for in another fund. L Special Revenue Fund - The Special Revenue Fund is used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally L restricted to expenditures for specified purposes. The Special Revenue Fund closed during the year ended September 30, 1989. L Capital Projects Fund - Capital Projects Funds are used to account for equipment replacement or the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust 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. Internal Service Fund - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost - reimbursement basis. 33. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 Fiduciary Fund Type: Trust and Agency Funds - Pension Trust Funds and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent 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. C. Measurement Focus: Governmental Fund Types - General, Special Revenue and Capital Project Funds are accounted for on a "spending" or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on the balance sheets. Accordingly, the reported undesignated fund balances (net current assets) are considered to be measures of available, spendable or appropriable resources. Governmental Fund Type operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Proprietary Fund Types - Enterprise and Internal Service Funds are accounted for on an "income determination" measurement focus. Accordingly, all assets and liabilities are included on their balance sheets, and the reported fund equity (total reported assets, less total reported liabilities) provides an indication of the economic net worth of the fund. Operating statements for Proprietary Fund Types (on an income determination measurement focus) report increases (revenues) and decreases (expenses) in total economic net worth. Fiduciary Fund Type - Pension Trust Funds are accounted for in the same manner as Proprietary Fund Types since capital maintenance is critical. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 34. me CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 Account Groups - The General Long -Term Debt and General Fixed Assets Account Groups are concerned only with the measurement of financial position. They are not involved with the measurement of results of operations. Long -term debts, which are not intended to be financed through Proprietary or Fiduciary Funds, are accounted for in the General Long -Term Debt Account Group. Fixed assets, which are not used in Proprietary or Fiduciary Fund operations, are accounted for in the General Fixed Assets Account Group. ' (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. I (2) Budget workshops are scheduled by the City Manager as needed. I (3) The general summary of the budget and notice of public hearing is published in the local newspaper. 1 35. D. Basis of Accounting: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All Governmental Funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. Revenues which are susceptible to accrual include property taxes, franchise taxes, licenses, charges for services and investment earnings. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long -term debt which are recognized when due. All Proprietary and Pension Trust Funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned and their expenses are recognized when they are incurred. E. Budgets and Budgetary Accounting: The City follows these procedures in establishing the budgetary data reflected in the financial statements - ' (1) Prior to the end of the fiscal year, the City Manager submits to the City Council a proposed operating budget ' for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. I (2) Budget workshops are scheduled by the City Manager as needed. I (3) The general summary of the budget and notice of public hearing is published in the local newspaper. 1 35. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 (4) Public hearings are conducted to obtain taxpayer comments. (5) Prior to October 1, the budgets are legally enacted through passage of an ordinance. (6) The City Manager is authorized to transfer budgeted ° amounts within 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 department level. (8) Appropriations lapse at the close of the fiscal year to the no extent they have not been expended. Appropriations for capital expenditures lapse five years henceforth. (9) Budgets are adopted for the General Fund on a basis consistent with generally accepted accounting principles. Legally enacted fiscal year budgets were not adopted for any other governmental fund type and, therefore, budgetary comparisons were not presented in the budgetary statement for any other fund than the General Fund. ffm (10) The City Council, by Ordinance, may make supplemental appropriations in excess of those originally estimated for the year up to the amount of available revenues. Two such appropriations were approved for the 1988/89 budget on March 20, 1989 through Ordinance No. 89 -0 -9, and on August 30, 1989 through Ordinance No. 89 -0 -23, in accordance with the City Charter. F. Receivables: Unbilled Utility Accounts Receivable - Water, sewer and refuse operating revenues are generally recognized on the basis of cycle billings rendered monthly. The unbilled portion 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. 36. M on l CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 Property Taxes - Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the County Property Appraiser and County Finance Director. The laws of the state regulating tax assessment are also designed to assure a consistent property valuation method state -wide. State Statutes permit municipalities to levy property taxes at a rate of up to 10 mills. The current millage rate assessed by the City is 5.3. The property tax calendar is as follows: Valuation Date January 1, 1988 k 37. Property Appraiser prepares the assessment roll with values as of roll and all real and tangible personal January 1, 1988, submits this preliminary roll for approval by the State and notifies each taxing authority of their respective valuations. July 1, 1988 date). City Council holds two required public hearings and adopts a budget and ad valorem tax millage rate(s) for the coming A Notice of Taxes is mailed to each property fiscal year. September, 1988 k 37. Property Appraiser certifies the assessment roll and all real and tangible personal property taxes are due and payable (levy date). November 1, 1988 A Notice of Taxes is mailed to each property owner on the assessment roll. Taxes may be paid November 1988 through March 1989, with the following applicable discounts - Month Discount Percent November 4% December 3 January 2 November 1, 1988 February 1 through March 0 March 31, 1989 All unpaid taxes on real and tangible personal property become delinquent. April 1, 1989 k 37. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 A list of unpaid tangible personal property taxes and a list of unpaid real property taxes is advertised. April and May, 1989 Tax certificates are sold on all real estate parcels with unpaid real property taxes (lien date). June 1, 1989 A court order is obtained authorizing the seizure and sale of personal property if the taxpayer fails to pay the delinquent personal property taxes. June, 1989 In accordance with the modified accrual basis of accounting, property taxes that are measurable, but not available, are reported as deferred revenue. The deferred revenues will be recognized in the fiscal year in which they become available. G. Investments: Investments are stated at cost or amortized cost, which approximates market. H. Inventories: Inventories are stated at cost on the basis of the first -in, first -out method of accounting. The effect of this method is to flow costs through operations in the order in which they are purchased and to assign a balance sheet cost more nearly at current replacement values. 1. Hxed Assets: Fixed assets purchased in the Governmental Fund Types are recorded as expenditures at the time of purchase. Public domain ( "infrastructure ") general fixed assets, consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems are not capitalized in the accounting records. 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. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 The fixed assets of the Enterprise Fund are capitalized at cost when purchased. Donated fixed assets are capitalized at their fair market value at the date received and classified as contributions. Depreciation is provided using the straight -line method over the assets' estimated useful lives. The estimated useful lives of the various classes of depreciable assets are as follows - A SSETS YEARS Water system 25 - 65 years Sewer system 6 - 65 years Refuse collection facilities 10 years Machinery and equipment 3 - 25 years ' J. Unamortlzed Bond Discount and Issuance Costs: Bond discounts and issuance costs are amortized using the bonds outstanding method. The difference between the bonds outstanding method and the interest method is immaterial. K. Compensated Absences: ' The City records compensated absences in the Governmental Fund Types 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. ' L. Reserves: Reserves indicate that portion of fund balance /retained earnings that is not available for appropriation or which is legally segregated for a specific future use. The description of each reserve indicates the purpose for which it was intended. M. Reserve for Encumbrances: Encumbrances outstanding at year end represent the estimated amount of the expenditures ultimately to result if unperformed M contracts in process at year end are completed. Such encumbrances do not constitute expenditures or liabilities, but rather reservations of fund balance for subsequent years' appropriation. N. Contributed CapitaL• Proprietary Fund contributed capital represents outside contributions from other funds, governmental entities, developers and customers. The contributions were collected to establish such funds or to finance fixed asset additions. 39. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 O. Long -Term Debt: Debt recorded in the General paid from Governmental Fund Long -Term Debt Account Group is resources. Debt recorded in the Enterprise Fund is paid from Enterprise Fund resources. P. 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 changes in f nancial position in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of these data. Q. Reclassifications: Certain September 30, 1.988 account balances have been reclassified in this report to conform with the financial statement presentation used in 1989. 2. DEPOSITS AND INVESTMENTS The City maintains a cash and investments pool that is available for use by all funds, except the general and police pension trust funds. Each fund type's portion of this pool is included on the combined balance sheet in "Pooled Cash and Investments." In addition, investments are separately held by several of the City's funds. The deposits and investments of the general and police pension trust funds are held separately from those of other City funds. A. Deposits: At September 30, 1989, the carrying amount of the City's deposits and petty cash was $4,849,159 and the bank balance was $5,035,565. Since the City's banks are on the list of state qualified public depositories, the entire amount of deposits is considered fully collateralized. All City- managed deposits were covered by Federal Depository Insurance. B. Investments: The City's investment procedures are regulated by State Statute. Acceptable investment instruments participated in during the year include U.S. Treasury Notes; and Obligations of the Federal Farm Credit Bank. .1 M M M .. oft M CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS •• SEPTEMBER 30, 1989 ow Investments of the Municipal Police Officers' Retirement Trust and General Employees' Pension were managed by Principal Mutual L Life Insurance Company. Investments consist principally of bonds and commercial and residential mortgages, all of which are 1 authorized by the City. The following schedule categorizes the level of risk assumed by the City relating to investments held at September 30, 1989. Cate -aory 1 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. Category 2 Category 2 includes uninsured and unregistered investments for which the securities are held by the broker's or dealer's trust department or agent in the City's name. 1 41. Category 3 Category 3 includes uninsured and unregistered investments for which the securities are held by the broker or dealer or by its trust L department or agent, but not in the City's name. L CATEGORY CARRYING 1 2 3 AMOUNT MARKET i E VALUE Federal Farm Credit Bank discount note $1,203,125 $ - $ - $ 1,203,125 $ 1,203 125 Repurchase Agreement ' (U.S. Treasury Notes) - - 2,775,192 2,775,192 2,775,192 Investments with Principal Mutual Life Insurance Corp. (pension investments) - - 1,328,279 1,328,279 Investment with the 1,328,279 International City Managers 1 Association - - 800 800 800 1,203, $4,104,27 1 J_§2 07 396 tjqL7396 t 1 41. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 C. Equity in Pooled Cash: The City consolidates the cash resources of all its funds into a single pooled account in order to maximize investment earnings. Overdrafts of the account which represent investment of excess funds in the General Fund are netted against investment balances for purposes of financial statement display. Overdrafts of pooled cash equity which represent loans are reflected as interfund payables /receivables. 3. CHANGES IN GENERAL FIXED ASSETS A summary of changes in general fixed assets follows: Land Buildings Improvements other than buildings Equipment Construction in progress TOTAL BALANCE BALANCE OCTOBER 1, SEPTEMBER 30, 1988 ADDITIONS DELETIONS 1989 $ 749,809 $ - $ - $ 749,809 1,000,825 268,462 - 1,269,287 2,264,168 - - 2,264,168 1,563,439 547,052 110,740 1,999,751 79,522 6,536 5,657,763 $ 822,050 4. CAPITALIZATION OF INTEREST 79,499 6,559 190,239 6 289 574 Net interest costs capitalized in the Water and Sewer Fund during the year (interest expense less any interest earned on the investment of bond proceeds) amounted to a credit of $13,348 for 1989. Interest expense incurred during the current fiscal year totaled $151,184 and was comprised of $96,216 of debt associated with nonconstruction activities and $54,968 associated with construction activity. Capitalized interest for 1989 was calculated as follows: Total interest expense Less: Interest revenue INTEREST CAPITALIZED $ 54,968 (68,316 (13,348 M 42. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 r 5. GENERAL LONG -TERM DEBT ow A summary of changes in general long -term debt follows: 43. r OBLIGATION FOR BALANCE COMPENSATED BALANCE OCTOBER 1, NOTE AND LEASE ABSENCES SEPTEMBER 30 1988 ADDITIONS DELETIONS EARNED USED 1989 Compensated absences $ 85,594 $ - $ $ 115,936 $ 95,825 $ 105,705 Computer note - 66,000 - - - 66,000 Capital lease obligation - 211.200 - - 211,200 $ 85,594 $__277 200 $ - $ 115,936 $ 95,825 $ 382,905 -- The computer note for $66,000 represents a note with a local financial institution which provides for payment in three equal annual installments of $22,000 plus interest at 7.53% commencing on April 27, 1990 and continuing through April 27, 1992. The computer equipment financed by the note is capitalized in the General Fixed Assets Account Group. .., The assets acquired under capital lease are fire trucks. They have been capitalized in General Fixed Assets at a cost of $264,000. The interest rate on the lease is 7.5 %. The following is a schedule by years of future minimum installments under capital leases and notes payable, together with the present value of the net minimum lease and installment note payments as of September 30, 1989: GENERAL YEAR ENDING LONG -TERM SEPTEMBER 30 DEBT 1990 $ 66,017 1991 64,360 1992 62,703 1993 39,875 t 1994 39,874 1995-1996 79.748 1 TOTAL MINIMUM LEASE AND INSTALLMENT NOTE PAYMENTS 352,577 Less: Amount representing interest 75.377 TOTAL $ 277,200 43. r CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 6. ENTERPRISE FUND DEBT - WATER AND SEWER SYSTEM A. Revenue Bonds Payable: MR 1. Repayment Terms of the Water and Sewer System Revenue Bonds: Revenue bonds payable at September 30, 1989 are as follows - so FISCAL YEAR ENDING WATER AND SEWER REVENUE BOND to SEPTEMBER 30, PRINCIPAL INTEREST TOTAL 1990 $ 62,000 $ 27,668 $ 89,668 1991 65,000 25,207 90,207 1992 67,000 22,649 89,649 1993 70,000 19,995 89,995 1994 73,000 17,224 90,224 1995-1999 _ 408,000 40,494 448,494 -$-- -7-45,-000 $ 153,237 898,237 The bonds and interest thereon are payable solely from and secured by a lien upon and a pledge of the net revenues to be derived from the operation of the water and sewer system, the proceeds of certain municipal excise taxes ( "utility tax ") and all money derived from sources other than ad valorem taxation and legally available for such purpose. 2. Restrictive Covenants of the Water and Sewer System Revenue Bond Ordinance: (a) Establishment and maintenance of various funds - (1) Revenue Fund records all the operating revenue and expense of the system; .. go ANNUAL AMOUNT RATES AND FINAL SERIAL AMOUNT OUT- DATE`S _MATS= PAYMIIM I82JED i STANDING 1964 Water and Sewer Revenue 3.875 $15,000- Bonds (2/1;8/1) 1999 $89,000 $ 1,323,000 r $ 745,000 Less: Current maturities (62.000 BONDS PAYABLE - LONG -TERM PORTION $ 683,000 Revenue bond debt service requirements to maturity, including interest of $153,237, are as follows: FISCAL YEAR ENDING WATER AND SEWER REVENUE BOND to SEPTEMBER 30, PRINCIPAL INTEREST TOTAL 1990 $ 62,000 $ 27,668 $ 89,668 1991 65,000 25,207 90,207 1992 67,000 22,649 89,649 1993 70,000 19,995 89,995 1994 73,000 17,224 90,224 1995-1999 _ 408,000 40,494 448,494 -$-- -7-45,-000 $ 153,237 898,237 The bonds and interest thereon are payable solely from and secured by a lien upon and a pledge of the net revenues to be derived from the operation of the water and sewer system, the proceeds of certain municipal excise taxes ( "utility tax ") and all money derived from sources other than ad valorem taxation and legally available for such purpose. 2. Restrictive Covenants of the Water and Sewer System Revenue Bond Ordinance: (a) Establishment and maintenance of various funds - (1) Revenue Fund records all the operating revenue and expense of the system; .. go L CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 (2) Operation and Maintenance Fund records the operating expenses of the system; (3) Sinking Fund records the debt service requirements of the bonds; (4) Renewal and Replacement Fund records the cost of extensions, enlargements or additions to, or the replacement of capital assets, of the Water and Sewer System assets; (5) Construction Trust Fund records construction or acquisition of the system assets; and (6) Debt service reserve. (b) Restrictions on the use of cash from operations in order of priority - (1) Revenues shall first be used for payment of the cost of operating and maintaining the water and sewer system; (2) Deposits in the Sinking Fund to be made each month in an amount equal to 1/6 of the next interest payment due and 1/12 of the next principal payment due; (3) Deposit to a Reserve Account up to a stated maximum of $100,000; and (4) Deposits are to be made to the Renewal and me Replacement Fund up to a stated maximum. B. Gulf Breeze - Notes Payable: 1. Repayment Terms of the City of Gulf Breeze Note Payable: to On September 1, 1988, the City borrowed $650,000 from the City of Gulf Breeze, Florida, Local Government Loan Program. Principal payments on the note are due December 1st each year ,. beginning December 1, 1989. Interest is payable semi- annually on December 1st and June 1st of each year beginning December 1, 1988. The note provides for interest rates varying from 7.37% to 8.0% and contains an average interest rate of 7.72 %. go 45. VW CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 The note and interest thereon are payable solely from and secured by a junior and subordinate lien upon and a pledge of the net revenues derived from the City's water and sewer system and the utilities service taxes. Under the terms of the note agreement, the City has agreed to maintain certain restricted funds and to comply with the covenants contained in such agreements. 2. Restrictive Provisions of the City of Gulf Breeze Note Payable provided for: (a) Establishment and maintenance of various funds - Revenue Fund - Revenue Fund records all pledged revenues remaining after payment of the prior lien bonds (1964 water and sewer bonds). Sinking Fund - The Sinking Fund records debt service requirements of the bonds. `v (b) Restrictions on the use of cash from operations - Deposits in the Sinking Fund to be made each month in an amount equal to 1/6 of the next interest payment due and 1/12 of the next principal payment due. (c) Early redemption - None. (d) Investment restrictions - Monies on deposit may be invested in permitted investments maturing as specified in the ordinance. C . Bond Anticipation Note Payable: 1. Repayment Terms of the Bond Anticipation Note Payable: On July 11, 1989, the City sold bond anticipation notes to a local financial institution in the amount of $4,700,000. The proceeds are to provide for the initial costs to improve water and sewer system facilities and to pay certain costs of issuance on the bonds. Principal and interest are due within one year from the date of the note. The note provides for an interest rate of 6.67 %. u I 46. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 2. Restrictive Provisions of the Bond Anticipation Note Payable: P y ® The note is secured by the proceeds of a planned bond issue. At ■ present, no decision has been made as to the amount of the bonds to be issued. Preliminary estimates of project costs are approximately $35 million. The bonds are to be sold by July 1990. The note is also secured by a pledge of the City's water and sewer system revenues which shall be subordinate to existing senior and subordinated debt obligations. D. Amortization of Water and Sewer System Notes Payable: Note payable debt service requirements to maturity, including interest of $1,224,662, are as follows: E. Advance Refunding (Full Defeasance): In the prior year, the City obtained a note from the Gulf Breeze, Florida Local Government Loan Program in the amount of $650,000 to advance refund $619,000 and $281,000 of outstanding 1977 and 1978 Water and Sewer Revenue Bonds, respectively. At September 30, 1989, the 1977 and 1978 Water and Sewer Revenue Bonds had outstanding balances of $597,000 and $273,000, respectively. IJ 47. FISCAL YEAR BOND ENDING GULF BREEZE ANTICIPATION NOTES SEPTEMBER 30, PRINCIPAL INTEREST PRINCIPAL INTEREST TOTAL 1990 $ 10,000 $ 50,625 $ 4,700,000 $ 313,490 $ 5,074,115 1991 10,000 49,887 - - 59,887 1992 10,000 49,150 - - 59,150 1993 10,000 48,413 - - 58,413 1994 10,000 47,675 57,675 1995-1999 65,000 225,653 - - 290,653 2000-2004 90,000 196,025 - - 286,025 2005-2009 140,000 150,744 - _ 290,744 2010-2014 200,000 84,400 284,400 2015-2018 105,000 8,600 - 113,600 $ 650,000 $ 911,172 $ 4,700,000 $ 313,490 $ 6,574,662 E. Advance Refunding (Full Defeasance): In the prior year, the City obtained a note from the Gulf Breeze, Florida Local Government Loan Program in the amount of $650,000 to advance refund $619,000 and $281,000 of outstanding 1977 and 1978 Water and Sewer Revenue Bonds, respectively. At September 30, 1989, the 1977 and 1978 Water and Sewer Revenue Bonds had outstanding balances of $597,000 and $273,000, respectively. IJ 47. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 ow 7. UNAMORTIZED BOND ISSUANCE COSTS Unamortized bond issuance costs, at September 30, 1989, consist of the following: -w GULF ANTICIPATION BREEZE NOTES TOTAL Original costs $ 5,974 $ 44,025 $ 49,999 Less: Accumulated amortization 622 - 622 5,352 44,025 49,377 8. DEFERRED REVENUES Deferred revenues at September 30, 1989 consists of the following: Delinquent taxes $ 24,249 Occupational licenses received in advance 18,667 Recreation and park grant revenue received in advance 38,464 Deferred special assessments 22,161 TOTAL 103,541 9. INTERFUND ACCOUNTS Individual fund interfund receivables and payables, at September 30, 1989, consist of the following: DUE FROM DUE TO .. OTHER OTHER FUNDS FUNDS General Fund $ 16,459 $ - Capital projects - 16.459 16,459 16,459 � .- W. ,. L CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 10. DEFERRED COMPENSATION The City employees may participate in a deferred compensation plan created in accordance with Internal Revenue Code Section 457. Accordingly, they may defer a portion of their salary until future years. This deferred compensation is not available until termination, retirement, death or unforeseeable emergency. Program investments are administered by the International City Management Association Retirement Corporation (ICMA -RC). All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or designated beneficiary) solely the property and rights of the City ' (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equivalent to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City does not believe that it will use the assets to satisfy claims of general creditors in the future. 11. OTHER REQUIRED DISCLOSURES Q R S e 1 Fund Balance Deficits: Capital Projects - $87,121 The deficit in fund balance for the Capital Projects Fund at September 30, 1989 is anticipated by management to be alleviated in future years with revenues from stormwater user fees. 12. SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City of Edgewater maintains two Enterprise Funds which provide water, sewer and garbage services. Segment information for the year ended September 30, 1989 follows: Total operating revenues Operating expenses Depreciation Operating income Net income WATER AND REFUSE SEWER COLLECTION FUND FUND TOTAL $ 1,635,084 $ 534,739 $ 2,169,823 1,122,505 424,744 1,547,249 214,759 44,170 258,929 297,820 65,825 363,645 262,894 100,158 363,052 49. CITY OF EDGEWATER, NOTES TO FINANCIAL SEPTEMBER 30, 1989 FLORIDA STATEMENTS Segment information - (continued): 13. PENSION PLANS A. Plan Descriptions: 1. Police Officers' Retirement Trust Fund: The Police Officers' Retirement Trust Fund is a single employer defined benefit retirement system established pursuant to state statute. The funding methods and determination of benefits payable are provided in the various acts of the Florida Legislature. The 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 cost, subject to adjustments for market declines judged to be other than temporary. Full -time police officers are eligible to participate in the Police Officers' Retirement System upon 3 months employment with the City. Participating police employees contribute 1% of their base salary to the plan. Employees vest for full benefits after five years of service. 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. 50. WATER AND REFUSE SEWER FUND COLLECTION FUND TOTAL Contributed capital: Increases 1,873,023 - 1,873,023 Property, plant and equipment: Additions 2,410,855 53,749 2,464,604 Disposal net of accumulated depreciation 746 - 746 Working capital 1,222,236 413,323 1,632,559 Total assets 14,849,607 687,753 15,537,360 Bonds payable 807,000 - 807,000 Total fund equity 8,166,317 649,475 8,815,792 13. PENSION PLANS A. Plan Descriptions: 1. Police Officers' Retirement Trust Fund: The Police Officers' Retirement Trust Fund is a single employer defined benefit retirement system established pursuant to state statute. The funding methods and determination of benefits payable are provided in the various acts of the Florida Legislature. The 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 cost, subject to adjustments for market declines judged to be other than temporary. Full -time police officers are eligible to participate in the Police Officers' Retirement System upon 3 months employment with the City. Participating police employees contribute 1% of their base salary to the plan. Employees vest for full benefits after five years of service. 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. 50. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 2. General Employees' Pension Fund: The General Employees' Pension Fund is a single employer defined benefit retirement system and contains the assets of the General Employees' Pension Fund. The funding methods and determination of benefits payable are provided by various acts of the City Council, including subsequent amendments thereto. w The code provides, in general, that funds are to be accumulated from employee contributions, City contributions, and income from investment of accumulated funds. Investments are �. reported at cost, subject to adjustments for market declines judged to be other than temporary. C. Related Party Transactions: The City had no securities included in the assets of either the Police Officers' Retirement Trust Fund or the General Employees' Pension Fund. Similarly, there were no loans between the City and the funds. 1 51. The General Employees' Pension Fund includes all City employees, except police and the City Manager. Employees become eligible for the plan after three months of continuous employment. Employees vest for full benefits after five years of service. B. Payroll and Participant Data POLICE GENERAL OFFICERS EMPLOYEES Payroll for covered employees $ 410,988 $1,379,409 Total City payroll of eligible employees $ 763,773 $1,808,392 Retirees and beneficiaries currently receiving benefits and vested terminated employees 3 6 Active employees: Fully vested 5 29 Nonvested 16 66 City contributions during the current year $ $ 126,021 C. Related Party Transactions: The City had no securities included in the assets of either the Police Officers' Retirement Trust Fund or the General Employees' Pension Fund. Similarly, there were no loans between the City and the funds. 1 51. 1 CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 D. Pension Benefit Obligation: The Pension Benefit Obligation is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the plans on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the plans. Pension benefit obligation as of: Terminated employees not yet receiving benefits Current employees - Accumulated employees contributions Employer financed - Vested Nonvested Total pension benefit obligation Net assets available for benefits Unfunded pension benefit obligation (assets in excess of pension benefit obligation) POLICE GENERAL OFFICERS EMPLOYEES TOTAL 192,366 October 1, October 1, 1988 1988 $ 15,514 $ 51,401 $ 66,915 7,182 33,077 457,972 136,593 314,188 192,366 823,561 340,093 733,320 7,182 491,049 450,781 1,015,927 1,073.413 $ (147,727 $ 90,241 $ (57,486 M o, .i M so me go no 52. r CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 an E. Funding Methods and Assumptions: The valuation method used for funding the police and general employees pension funds is the Entry Age Normal - Frozen Initial Liability Actuarial Cost Method. This method spreads the total cost of the projected pension benefits for each employee from the date he - is first eligible for the plan to his normal retirement age. POLICE GENERAL OFFICERS EMPLOYEES Significant actuarial assumptions: Life expectancy mo Interest return Salary increases Retirement age 1971 Group Annuity 1971 Group Annuity Mortality Table Mortality Table 8% 8% 7.5% 7.5% 60 but no later than 60 with 5 years of 65 accrued service or after 30 years of accrued service The City's funding policy is to provide for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll which, when combined with employee and state contributions, are designed to accumulate sufficient assets to pay benefits when due. The latest actuarial information used for funding the Municipal Police Officers' Retirement Trust in fiscal 1989 was dated October 1, 1988. Assets of $318,720, valued at market, were used to compute " funding requirements. The latest actuarial information used for funding the General Employees' Pension in fiscal 1989 was dated October 1, 1988. Assets of $640,324, valued at market, were used to compute funding requirements. I 1 53. CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 Information related to the actuarial valuations and contributions is set forth below: Unfunded actuarial liability $ F. MStoricalInformation: The following information is available for the years ended September 30, 1989 and 1988: 54. Pension benefit obligation Net assets available for benefits Net assets available for benefits as a percentage of the pension benefit obligation Unfunded pension benefit obligation - Assets less than (in excess of) pension benefits Unfunded pension benefit obligation as a percent of annual covered payroll Annual covered payroll Employer contributions as a percent of annual covered payroll (made in accordance with actuarial requirements) POLICE GENERAL OFFICERS EMPLOYEES 12$2 12$$ 12$2 12$$ $ 192,366 $ 158,706 $ 823,561 $ 717,320 340,093 252,093 733.320 475,963 177% 159% (147,727) (93,387) 1,379,409 1,144,007 89% 66% 90,241 241,357 21.9% 68.9% 410,988 350,335 9% 10% POLICE GENERAL OFFICERS EMPLOYEES Actuarial contribution required to fund: Normal Cost $ 22,255 $ 88,042 Unfunded actuarial liability $ 2,265 $ 45,966 Percent of payroll 5.4% 6.4% Amortization period to cover unfunded actuarial accrued liabilities 20 years 20 .years Actuarial present value of accumulated plan benefits: Vested $ 55,773 $ 509,373 Nonvested 31,396 80,083 $ 87,169 $ 589,456 Unfunded actuarial liability $ F. MStoricalInformation: The following information is available for the years ended September 30, 1989 and 1988: 54. Pension benefit obligation Net assets available for benefits Net assets available for benefits as a percentage of the pension benefit obligation Unfunded pension benefit obligation - Assets less than (in excess of) pension benefits Unfunded pension benefit obligation as a percent of annual covered payroll Annual covered payroll Employer contributions as a percent of annual covered payroll (made in accordance with actuarial requirements) POLICE GENERAL OFFICERS EMPLOYEES 12$2 12$$ 12$2 12$$ $ 192,366 $ 158,706 $ 823,561 $ 717,320 340,093 252,093 733.320 475,963 177% 159% (147,727) (93,387) 1,379,409 1,144,007 89% 66% 90,241 241,357 21.9% 68.9% 410,988 350,335 9% 10% L CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 All contributions were made in accordance with actuarially determined requirements. Ten -year trend information regarding operating data for the pension funds is included in the Supporting Schedules. 14. COMMITMENTS AND CONTINGENCIES A. Litigation: The City is engaged in various liability claims incidental to the conduct of its general government operations at September 30, 1989. It is expected that the City's liability carrier would pay any judgment which might be entered, less any applicable deductible. B. Capital Improvement Project: The City is currently committed to various planners, engineers and 7 surveyors in connection with the completion of a Capital Improvement Program which will include improving and expanding current wastewater retention and treatment facilities as well as water, wastewater and stormwater drainage treatment. The projects expected date of completion is in the 1991 and 1992 fiscal year. Current and prior year funding payments to the self insurance fund were recorded as operating transfers. In addition, no determination of reserves was made for either year as a result of no actuarially determined assumed risk made by the City. an 55. ow C. Self - Insurance Fund: The City is self insured and assumes the following risk categories: 1. The payment of claims and judgements involving the acts of officers or employees of the City or property belonging to the City. 2. Providing for the insurance of any real or personal property or operation of the City against risks or hazards. 3. The maintenance of hurricane disaster funds. 4. The recovery of tort claims against other parties. 5. Fines and forfeitures levied against employees as a result of being found responsible for preventable accidents. 6. Amounts received from parties contracting with the City for providing insurance coverage to protect parties for risks involving activities or property associated with the contracts. Current and prior year funding payments to the self insurance fund were recorded as operating transfers. In addition, no determination of reserves was made for either year as a result of no actuarially determined assumed risk made by the City. an 55. ow CITY OF EDGEWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 In addition to the self insurance programs, the City has various other insurance policies covering various business risks including property and general liability. Liability limits are in excess of $6.2 million and terms associated with property insurance include a $250 deductible, with a 90% coinsurance provision. 15. SUBSEQUENT EVENTS A. Stormwater Management Utility: A Stormwater Management Utility was created October 1, 1989. The utility charges a user fee based upon actual or average impervious surfaces located on the users property. Fees generated by the utility will be used to finance improvements to the stormwater management system. B. Water and Sewer Improvements: The City Council is in the process of studying issuance of significant Water and Sewer System debt for the acquisition and development of additional wellfields. A fifty (50) acre parcel has been purchased for a proposed water treatment plant and expansion of wellfields. 56. so am am Im W. Im M +n rn oft 0. an r M M "' COMBINING AND INDIVIDUAL FUND FINANCIAL STATF.ME NTS AND SCHEDULES These financial statements provide a more detailed view of the "General Purpose Financial Statements" presented in the preceding subsection. Combining statements are presented when there is more than one fund of a given fund type. Individual fund statements are presented when there is only one fund of a given type. They are also necessary to present budgetary comparisons. r M 0 A 7 PROP=TMY 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 6 The Water and Sewer Fund accounts for the fiscal activities of the City's water and sewer treatment and distribution operations, as well as the funding and payment of related debt. Refuse Collection Fund The Refuse Collection Fund accounts for the fiscal activities of the City's refuse collection and disposal operation. 1 1 L7 n CITY OF EDGEWATER, FLORIDA COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS SEPTEMBER 30, 1989 r. WATER AND REFUSE SEWER COLLECTION 1989 1988 FUND FUND TOTAL TOT L ASS CURRENT ASSETS Pooled cash and investments $ 1,319,186 $ 401,969 $ 1,721,155 $ 1,334,075 Accounts receivable 129,045 - 129,045 82,969 Unbilled accounts receivable 66,614 35,826 102,440 86,236 Accrued interest receivable - - - 79 Inventory 34,687 - 34,687 45, 544 TOTAL CURRENT ASSETS 1,549,532 437,795 1,987,327 1.548,903 RESTRICTED ASSETS Customer deposits: .. Cash 201,7'1 - 201,731 188,975 Revenue bond sinking funds: Cash 2,911 - 2,911 15,042 Investments, at cost 167,700 - 167,700 254,304 Accrued interest receivable 541 - 541 990 Renewal and replacement fund: Investments, at cost 50,000 64,208 114,208 131,908 Development funds: Cash 103,899 - 103,899 190,459 Investments, at cost 530,000 - 530,000 130,000 Accrued interest receivable 2,163 - 2,163 557 Construction fund: Investments, at cost 3,978,317 - 3,978,317 - Accrued interest receivable 18,412 - 18,412 - TOTAL RESTRICTED ASSETS 5.055,674 64,208 5,119,882 912.235 PLANT AND EQUIPMENT Plant in service: Land 546,209 - 546,209 27,892 Water plant 5,254,742 - 5,254,742 4,843,325 Sewer plant 3,313,467 - 3,313,467 2,436,290 Refuse collection facility - 58,254 58,254 58,254 Machinery and equipment 251.138 415,692 666.830 602,265 9,365,556 473,946 9,839,502 7,968,026 less: accumulated depreciation 1,938,114 288,196 2,226,310 1,976,517 7,427,442 185,750 7,613,192 5,991,509 Construction in progress 767,582 - 767,582 197,684 8.195,024 185.750 8,380.774 6,189,193 OTHER ASSETS Unamortized bond issue costs 49,377 - 49,377 5,663 TOTAL ASSETS $14,849,607 $ 687,753 $ 15,537,360 $ 8,655,994 60. 1 1 WATER AND REFUSE SEWER FLJND COLLECTION FUND 1989 TOTAL 1988 TOTAL LIABILITIES AND FUND EQUITY CURRENT LIABILITIES (PAYABLE FROM CURRENT ASSETS) Accounts payable $ 221,872 $ 5,389 $ 227,261 $ 39,486 Accrued liabilities 50,133 19,083 69,216 52,201 Accrued interest payable 55,291 - 55,291 - TOTAL CURRENT LIABILITIES (PAYABLE FROM CURRENT ASSETS) 327,296 24,472 351,768 91,687 r CURRENT LIABILITIES (PAYABLE FROM RESTRICTED ASSETS) Customer deposits 201,731 - 201,731 188,975 Accrued interest payable 21,486 - 21,486 9,448 Revenue Bonds payable 62,000 - 62,000 60,000 i, Notes payable 10,000 - 10,000 250,000 Bond anticipation note 4.700000 - 4,700,000 - TOTAL CURRENT LIABILITIES (PAYABLE FROM RESTRICTED ASSETS) 4,995,217 4,995,217 508,423 OTHER LIABILITIES Revenue bonds payable - net 745,000 - 745,000 805,000 +• Accrued employee benefits 37,777 13,806 51,583 41,167 Notes payable 5,350,000 - 5,350,000 900.000 6,132,777 13,806 6,146,583 1,746,167 less: current portion 4,772,000 4,772.000 310,000 1,360.777 13,806 1,374,583 1.436.167 TOTAL LIABILITIES 6,683.290 38,278 6,721,568 2.036,277 FUND EQUITY Contributed capital: Contributions from governmental 6 agencies 535,603 179,209 714,812 714,812 Contributions from customers 4,581,735 8,068 4,589,803 3,909,842 Contributions - other 1,193,062 - 1,193,062 - 6.310,400 18.7,277 6,497.677 4.624,654 Retained earnings: Reserved for renewal and replacement 50,000 - 50,000 50,000 Reserved for debt retirement 77,666 - 77,666 200,888 Reserved for equipment purchases - 64,208 64,208 81,098 Unreserved 1.728,251 397,990 2.126.241 1.663,077 1,855,917 462,198 2,318,115 1,995,063 TOTAL FUND EQUITY 8.166,317 649,475 8,815.792 6.619,717 TOTAL LIABILITIES AND FUND EQUITY $14,849,607 $ 687,753 $ 15,537,360 $ 8,655,994 61. CITY OF EDGEWATER, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1989 OPERATING REVENUES Charges for services: Water sales Sewer sales Hydrant rental Refuse collection charges Penalties Miscellaneous TOTAL OPERATING REVENUES OPERATING EXPENSES Personal services Contractual services Materials and supplies Repairs and maintenance TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) BEFORE DEPRECIATION LESS: DEPRECIATION EXPENSE OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Utility service taxes Interest revenue Miscellaneous revenue Gain on disposal of equipment Interest/amortization expense and fiscal charges TOTAL NONOPERATING REVENUES (EXPENSES) PAGE 1 OF 2 WATER AND REFUSE SEWER COLLECTION 1989 1988 FUND FUND TOTAL TOTAL $ 1,027,807 $ - $ 1,027,807 $ 644,672 540,944 - 540,944 290,889 13,375 - 13,375 12,000 - 534,739 534,739 498,744 32,708 - 32,708 21,225 20,250 - 20,250 19.285 1.635,084 534,739 2,169,823 1,486,815 693,272 294,351 987,623 830,682 55,028 73,836 128,864 133,710 313,006 34,864 347,870 353,127 61,199 21,693 82,892 270,662 1,122.505 424,744 1,547,249 1,588,181 512,579 109,995 622,574 (101,366) 214.759 44,170 258,929 255,162 9,387 1,643 - 1,643 - 297,820 65,825 363.645 (356,528) - - - 441,444 161,429 32,571 194,000 138,037 4,718 1,762 6,480 9,387 1,643 - 1,643 - (96,216 - (96.216) (113.307) 71,574 34,333 105,907 475,561 M ow ow am as 62. oft CITY OF EDGEWATER, FLORIDA PAGE 2 OF 2 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1989 4W WATER AND REFUSE SEWER COLLECTION 1989 1988 FUND FUND TOTAL TOTAL INCOME BEFORE OPERATING TRANSFERS 369,394 100,158 469,552 119,033 OPERATING TRANSFERS Operating transfers out (136500 (10,000 (146,500 (130.000) INCOME (LOSS) BEFORE EXTRAORDINARY ITEM 232,894 90,158 323,052 (10,967) EXTRAORDINARY ITEM Gain on defeasance of debt - - - 302,685 NET INCOME 232,894 90,158 323,052 291,718 RETAINED EARNINGS AT BEGINNING OF YEAR 1,623,023 372,040 1,995,063 1,703,345 RETAINED EARNINGS AT END OF YEAR $ 1,855,917 $ 462,198 $ 2,318,115 $ 1,995,063 63. CITY OF EDGEWATER, FLORIDA PAGE 1 OF 2 COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ALL ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1989 WATER AND REFUSE SEWER COLLECTION 1989 1988 FUND FUND TOTAL TOTAL SOURCES OF WORKING CAPITAL From operations: Income (loss) before extraordinary item $ 232,894 Add: Expenses not creating current liabilities or using current assets - depreciation 214,759 loss on disposal of property, plant and equipment 746 amortization 311 WORKING CAPITAL PROVIDED BY OPERATIONS BEFORE EXTRAORDINARY ITEM 448,710 Extraordinary item - gain from defeasance of debt WORKING CAPITAL PROVIDED BY OPERATIONS 448,710 Increase in other current liabilities payable from restricted assets 24,794 Contributions from customers 679,961 Contributions - other 1,193,062 Reduction in construction in progress 13,348 Increase in noncurrent portion of employee compensated absences 6,987 Proceeds from long -term debt - Decrease in current maturities of long -term debt 90,158 $ 323,052 $ (10,967) 44,170 258,929 255,162 - 746 - 311 134,328 583,038 244,195 - - 302,685 134,328 583,038 546,880 24,794 679,961 1,193,062 13,348 3,429 10,416 Increase in current maturities of revenue bonds 62,000 - 62,000 Increase in current maturities of notes payable 10,000 - 10,000 Proceeds from bond anticipation note 4,700,000 - 4,700,000 550,554 8,194 650,000 16,000 TOTAL SOURCES OF WORKING CAPITAL 7,138,862 137,757 7,276,619 1.771,628 .- ho CITY OF EDGEWATER, FLORIDA COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ALL ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1989 L PAGE 2 OF 2 CHANGES IN WORKING CAPITAL Increase (decrease) in current assets: Pooled cash and investments Accounts receivable Inventory Prepaid expenses $ 298,886 $ 70,494 $ 369,380 $ 25,691 48,751 13,450 62,201 37,644 (10,857) - (10,857) 1,558 - - (16,057 336,780 83,944 420.724 48,836 Increase (decrease) in current liabilities: Accounts payable Accrued liabilities ' Accrued interest payable INCREASE IN WORKING CAPITAL � I � I � I 191,628 (3,853) 187,775 1,650 13,226 3,789 17,015 (2,005) 55,291 - 55,291 260,145 (64) 260,081 (355) L $ 84,008 $ 160,643 $ 48,481 WATER AND REFUSE SEWER COLLECTION 1989 1988 FUND FUND TOTAL TOTAL APPLICATIONS OF WORKING CAPITAL Additions to land 20,698 - 20,698 - Additions to machinery and equipment 518,317 - 518,317 - Additions to utility plant 1,871,840 53,749 1,925,589 348,701 Increase in restricted assets 4,225,347 - 4,225,347 132,883 Increase in other assets 44,025 - 44,025 5,663 Decrease in current liabilities payable from restricted assets - - - 24,900 Reduction of long -term debt 72,000 - 72,000 1,211,000 Principal payments of long -term debt 250,000 - 250,000 - Principal payments of revenue bonds 60,000 - 60,000 - TOTAL APPLICATIONS OF WORKING CAPITAL 7,062,227 53,749 7,115,976 1,723,147 INCREASE IN WORKING CAPITAL $ 76,635 $ 84,008 $ 160,643 $ 48,481 CHANGES IN WORKING CAPITAL Increase (decrease) in current assets: Pooled cash and investments Accounts receivable Inventory Prepaid expenses $ 298,886 $ 70,494 $ 369,380 $ 25,691 48,751 13,450 62,201 37,644 (10,857) - (10,857) 1,558 - - (16,057 336,780 83,944 420.724 48,836 Increase (decrease) in current liabilities: Accounts payable Accrued liabilities ' Accrued interest payable INCREASE IN WORKING CAPITAL � I � I � I 191,628 (3,853) 187,775 1,650 13,226 3,789 17,015 (2,005) 55,291 - 55,291 260,145 (64) 260,081 (355) L $ 84,008 $ 160,643 $ 48,481 L� I FIDUCIARY FUND TYPES These funds account for assets held by a governmental unit in a trustee capacity or as an agent for individual private organizations, other governmental units, and/or other funds. PENSION TRUST FUNDS Municipal Police Officers' Retirement Trust Fund The Police Officers' Retirement Trust 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 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. AGENCY FUND L. Deferred Compensation Fund The Deferred Compensation Fund is used to account for receipt and disbursement of amounts withheld from wages of employees participating in the deferred compensation plan with ICMA. All City employees are eligible to participate and may contribute the lesser of $7,500 or 25% of gross annual compensation. Deferred compensation amounts withheld from participating employees' pay are not taxable as current income until withdrawn from the plan. �r. CITY OF EDGEWATER, FLORIDA COMBINING BALANCE SHEET ALL FIDUCIARY FUND TYPES SEPTEMBER 30, 1989 PENSION AGENCY TRUST MUNICIPAL FUNDS FUND POLICE OFFICERS' GENERAL DEFERRED RETIREMENT EMPLOYEES' COMPEN- 1989 1988 TRUST PENSION SATION TOTALS TOTALS ASSET CURRENT ASSETS Cash and investments $ 408,794 $ 919,485 $ - $ 1,328,279 $ 1,073,413 Cash and investments with trustee - 800 800 TOTAL ASSETS $ 408,794 $ 919,485 $ 800 $ 1,329,079 $ 1,073,413 LIABILITIES AND FUND BALANCES LIABILITIES Deferred compensation $ - $ - $ 800 $ 800 $ TOTAL LIABILITIES - - 800 800 FUND BALANCES Reserved for employer's contribution 83,038 646,314 - 729,352 603,330 Reserved for employees' contribution 11,929 - - 11,929 7,302 Reserved for retirement benefits 313,827 273,171 - 586 -998 462,781 TOTAL FUND BALANCES 408,794 919,485 - 1.328,279 1,073,413 TOTAL LIABILITIES AND FUND BALANCES 408 794 $ 919,485 800 $ 1,329,079 $ 1,073,413 .: CITY OF EDGEWATER, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES ALL PENSION TRUST FUNDS YEAR ENDED SEPTEMBER 30, 1989 MUNICIPAL POLICE OFFICERS' GENERAL RETIREMENT EMPLOYEES' 1989 1988 TRUST PENSION TOTALS TOTALS OPERATING REVENUES Miscellaneous revenues $ 35,593 $ 79,511 $ 115,104 $ 93,529 Contributions 40,155 126.021 166,176 153.848 TOTAL OPERATING REVENUES 75,748 205,532 281,280 247.377 OPERATING EXPENSES Contractual services 3,742 5,834 9,576 7,271 Benefit payments 3,305 13,E 16,838 14,066 TOTAL OPERATING EXPENSES 7.047 19,367 26,414 21.337 NET INCOME 68,701 186,165 254,866 226,040 FUND BALANCES AT BEGINNING OF YEAR 340-M 733,320 1.073,413 847,373 FUND BALANCES AT END OF YEAR $ 408,794 $ 919,485 $ 1,328,279 $ 1,073,413 a CITY OF EDGEWATER, FLORIDA COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PENSION TRUST FUNDS YEAR ENDED SEPTEMBER 30, 1989 SOURCES OF WORKING CAPITAL From operations: Net income APPLICATIONS OF WORKING CAPITAL NET INCREASE IN WORKING CAPITAL CHANGES IN WORKING CAPITAL Increase (decrease) in current assets Increase (decrease) in current liabilities NET INCREASE IN WORKING CAPITAL MUNICIPAL POLICE OFFICERS' GENERAL RETIREMENT EMPLOYEES' 1989 1988 TRUST PENSION TOTALS S TOTALS $ 68,701 $ 186,165 $ 254,866 $ 226,040 $ 68,701 $ 186,165 $ 254,866 $ 226,040 $ 68,701 $ 186,165 $ 254,866 $ 226,040 $ 68,701 $ 186,165 $ 254,866 $ 226,040 70. CITY OF EDGEWATER, FLORIDA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND YEAR ENDED SEPTEMBER 30, 1989 DEFERRED COMPENSATION FUND Restricted Assets: Cash and investments with trustee Liabilities: Deferred compensation BALANCE BALANCE OCTOBER 1, SEPTEMBER 30. 1988 ADDITIONS DELETIONS 1989 $ - $ 4,661 $ 3,861 $ 800 $ - $ 4,661 $ 3,861 $ 800 $ - $ 4,661 $ 3.861 $ 800 $ $ 4,661 $ 3,861 $ 800 71. 1 7 Ij SUPPORTING SCHEDULES Financial schedules are presented to provide greater detailed information than reported in the preceding financial statements. This information, in many cases, has been spread throughout the report and is brought together here for greater clarity. Financial schedules are not necessary for fair presentation in conformity with generally accepted accounting principles. �I 1 CITY OF EDGEWATER, FLORIDA PAGE 1 OF 2 SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1989 REVENUES Taxes: Ad valorem taxes Franchise fees Utility service taxes State sales tax Local option gas Licenses and permits: Occupational licenses Building permits Intergovernmental revenues: State Revenue Sharing Mobile home fees Gasoline tax rebate Cigarette tax 2¢ additional Beverage licenses County occupational licenses State grants County grants Charges for services: Zoning fees Recreation fees and charges Street light fees Miscellaneous Driveway use permit Fines and forfeitures: Court fines Code enforcement fines Parking VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) $ 1,171,994 $ 1,192,780 $ 20,786 430,150 409,906 (20,244) 480,000 470,028 (9,972) 417,417 380,923 (36,494) 155,191 177,147 21,956 2,654,752 2,630.784 (23,968 35,500 38,102 2,602 121,050 171,751 50,701 156,550 209,853 53,303 343,373 358,881 15,508 11,000 12,652 1,652 11,000 13,152 2,152 51,987 51,419 (568) 6,000 5,438 (562) 18,500 20,705 2,205 72,900 23,453 (49,447) 37,000 37,000 - 551,760 522.700 (29,060 8,000 19,603 11,603 112,000 153,383 41,383 45,000 89,766 44,766 2,000 1,851 (149) 6,000 11,247 5,247 173,000 275,850 102,850 70,000 92,773 22,773 3,500 4,916 1,416 500 435 (65 74,000 98,124 24,124 MW L_3 I1 74. MP CITY OF EDGEWATER, FLORIDA SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1989 Miscellaneous: Interest revenue Sale of property and equipment Miscellaneous TOTAL REVENUES OTHER FINANCING SOURCES Transfer from Water /Sewer and Solid Waste Funds Proceeds from capital lease Proceeds from long -term debt TOTAL OTHER FINANCING SOURCES TOTAL REVENUES AND OTHER FINANCING SOURCES PAGE 2 OF 2 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) 50,000 100,444 50,444 5,191 5,191 - 10,800 93,058 82,258 65,991 198,693 132,702 3,676,053 3,936,004 259.951 106,500 106,500 - 211,200 211,200 - 66,000 66,000 - 11 1 1 $ 4,059,753 $ 4,319,704 259,951 75. CITY OF EDGEWATER, FLORIDA PAGE 1 OF 3 SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1989 GENERAL GOVERNMENT Legislative: Personal services Operating expenditures TOTAL LEGISLATIVE Executive: Personal services Operating expenditures Capital outlay TOTAL EXECUTIVE Financial and Administrative: Personal services Operating expenditures Capital outlay Debt service TOTAL FINANCIAL AND ADMINISTRATIVE Legal Department: Personal services Operating expenditures TOTAL LEGAL DEPARTMENT City Clerk: Personal Services Operating expenditures Capital outlay TOTAL CITY CLERK Other Government Services: Personal services Operating expenditures Capital outlay TOTAL OTHER GOVERNMENT SERVICES 76. ACTUAL BUDGET ACTUAL (OVER)UNDER (REVISED) EXPENDITURES BUDGET $ 35,033 $ 35,046 $ (13) 22,450 24,728 (2,278 57,483 59,774 (2,291 82,884 107,090 (24,206) 11,300 10,200 1,100 3,000 3,125 (125 97,184 120,415 (23,231 124,210 113,202 11,008 35,431 35,143 288 8,028 1,640 6,388 9,240 (9,240 167,669 159,225 8,444 45,000 41,365 3,635 7,000 6,666 334 52,000 48,031 3,969 45,463 47,438 (1,975) 31,463 29,558 1,905 2,760 644 2,116 79,686 77,640 2,046 4,137 3,865 272 130,837 136,635 (5,798) 172,554 142,450 30,104 307,528 282,950 24,578 CITY OF EDGEWATER, FLORIDA PAGE 2 OF 3 SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - .. BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1989 ACTUAL BUDGET (REVISED) ACTUAL EXPENDITi s (OVER) UNDER BUDGET Planning and Development: Personal services 83,454 51,854 31,600 Operating expenditures 43,984 43,704 280 TOTAL PLANNING AND DEVELOPMENT 127,438 95,558 31,880 TOTAL GENERAL GOVERNMENT 888,988 843,593 45,395 PUBLIC SAFETY Police Division: Personal services 868,018 867,075 943 Operating expenditures 153,797 155,340 (1,543) Capital outlay 98,041 97,320 721 TOTAL POLICE DIVISION 1,119,856 1,119,735 121 Fire Division: Personal services 100,175 44,559 55,616 Operating expenditures 80,720 84,380 (3,660) Capital outlay 336,047 305,182 30,865 TOTAL FIRE DIVISION 516,942 434,121 82,821 Building and General Inspections: Personal services 121,388 113,746 7,642 Operating expenditures 18,725 16,628 2,097 Capital outlay 11,000 9,932 1,068 TOTAL BUILDING AND GENERAL INSPECTIONS 151,113 140,306 10,807 Civil Defense: Personal services 1,416 1,406 10 Operating expenditures 1,615 228 1,387 Capital outlay 60 600 - 600 ' TOTAL CIVIL DEFENSE 3,631 1,634 1,997 TOTAL PUBLIC SAFETY 1,791,542 1,695,796 95,746 77. CITY OF EDGEWATER, FLORIDA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1989 TRANSPORTATION Public Works: Personal services Operating expenditures Capital outlay TOTAL PUBLIC WORKS TOTAL TRANSPORTATION CULTURE /RECREATION Libraries: Operating expenditures Capital outlay TOTAL LIBRARIES Parks Department: Personal services Operating expenditures Capital outlay TOTAL PARKS DEPARTMENT Special Recreation Facilities: Personal services Operating expenditures Capital outlay TOTAL SPECIAL RECREATION FACILITIES TOTAL CULTURE/ RECREATION TOTAL EXPENDITURES OTHER FINANCING USES Operating transfers to Self Insurance Fund TOTAL EXPENDITURES AND OTHER FINANCING USES PAGE 3OF3 ACTUAL BUDGET ACTUAL (OVER) UNDER (REVISED) EXPENDITURES BUDGET 546,577 536,754 9,823 219,285 222,054 (2,769) 49,540 50,359 (819 815,402 809,167 6,235 815,402 809,167 6,235 5,050 2,058 2,992 - 664 (664 5,050 2,722 2,328 221,957 190,917 31,040 69,942 82,927 (12,985) 193,290 127,858 65,432 485,189 401,702 83,487 19,281 18,868 413 11,411 8,634 2,777 - 2,138 (2,138 30,692 29,640 1,052 520,931 434,064 86,867 4,069,663 3,782,620 287,043 110,000 110,000 $ 4,126,863 $ 3,892,620 $ 234,243 ffil � I � k 1 t CITY OF EDGEWATER, FLORIDA SCHEDULE OF REVENUES AND CONTRIBUTIONS - BUDGET AND ACTUAL NON -GAAP BASIS WATER AND SEWER ENTERPRISE FUND YEAR ENDED SEPTEMBER 30, 1989 OPERATING REVENUES VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) Water sales $ 1,000,800 Sewer service 495,357 Hydrant rental 12,500 Penalties 25,000 Miscellaneous 19,000 TOTAL OPERATING REVENUES 1.552.657 NONOPERATING REVENUES Interest Sale of equipment Miscellaneous TOTAL NONOPERATING REVENUES TOTAL REVENUES INCREASE IN CONTRIBUTIONS Sewer connection fees Water connections Water development Sewer development TOTAL REVENUES AND CONTRIBUTIONS 65,000 1.250 66,250 1,618,907 15,000 95,000 317,000 57.000 $ 1,027,807 $ 27,007 540,944 45,587 13,375 875 32,708 7,708 20.250 1. 250 1.635.084 82.427 161,429 96,429 2,389 2,389 4.718 3.468 168,536 102,286 1,803,620 184,713 - (15,000) 136,450 41,450 432,400 115,400 111.111 54.111 $ 2,102,907 $ 2,483,581 $ 380,674 This schedule is prepared on a budgetary basis and, as such, does not present the results of operations on a basis consistent with generally accepted accounting principles. 79. Water Field Operations: Personal services 228,684 oft CITY OF EDGEWATER, FLORIDA Operating expenditures 28,600 SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL Operating supplies NON -GAAP BASIS 7,672 (1,222) WATER AND SEWER ENTERPRISE FUND 75,000 60,000 YEAR ENDED SEPTEMBER 30, 1989 Debt service - interest and 54,968 (54,968) VARIANCE , 75,000 FAVORABLE (5,953) _BUDGET ACTUAL (UNFAVORABLE) 113,282 EXPENDITURES (1,101,158 ' Water Utility Service: (35,813 1,638,407 Personal services $ 250,254 $ 267,363 $ (17,109) Operating expenditures 135,350 139,116 (3,766) Operating supplies 111,000 120,236 (9,236) Debt service - principal 250,000 250,000 - 106,500 Debt service - interest 19,380 15,263 4,117 ' Capital outlay 620 730 (110 766,604 792,708 (26,104 Self Insurance Fund Water Field Operations: Personal services 228,684 236,490 (7,806) Operating expenditures 28,600 38,950 (10,350) Operating supplies 6,450 7,672 (1,222) Debt service - principal 75,000 60,000 15,000 MA Debt service - interest and 54,968 (54,968) other fiscal charges 75,000 80,953 (5,953) Capital outlay 87,800 113,282 (25,482 I (1,101,158 501,534 537,347 (35,813 Sewer Services: Personal services 178,219 189,420 (11,201) Operating expenditures 175,550 110,397 65,153 Operating supplies 13,305 12,861 444 Debt service - interest - 54,968 (54,968) Capital outlay 3,195 1,103,781 (1,100,586 370,269 1,471,427 (1,101,158 TOTAL EXPENDITURES 1,638,407 2,801,482 (1,163,075 TRANSFERS Operating transfer to General Fund 106,500 106,500 - ' Operating transfer to Self Insurance Fund 30,000 30,000 - TOTAL TRANSFERS 136,500 136,500 - TOTAL EXPENDITURES AND TRANSFERS $ 1,774,907 $ 2,937,982 $ (1,163,075 This schedule is prepared on a budgetary basis and, as such, does not present the results of operations on a basis consistent with generally accepted accounting principles. :1 CITY OF EDGEWATER, FLORIDA POLICE OFFICERS' RETIREMENT TRUST FUND REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE LAST TEN FISCAL YEARS EXPENSES BY TYPE REVENUES BY INVESTMENT SOURCE CONTRI- Y AR INCOME BUTIONS 1989 $ 35,593 $ 40,155 1988 31,214 35,422 1987 25,340 31,339 1986 23,929 21,713 1985 19,224 16,933 1984 13,991 24,529 1983 11,452 25,278 1982 3,351 21,134 1981 5,248 17,675 1980 3,284 16,425 EXPENSES BY TYPE ADMINI- BENEFITS REFUNDS STRATION $ 3,305 $ - $ 3,742 3,305 - 2 1,171 - 1,220 5,440 - 1,917 3,305 - 1,540 3,305 - 2,321 3,305 - 1,073 32,335 - 169 L m m CITY OF EDGEWATER, FLORIDA GENERAL EMPLOYEES' PENSION FUND REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE LAST TEN FISCAL YEARS REVENUES BY SOURCE EXPENSES BY TYP INVESTMENT CONTRI- ADMINI- YEAR INCO BUTIONS BENEFITS REFUNDS STRATION 1989 $ 79,511 $ 126,021 $ 13,533 $ - $ 5,834 1988 62,315 11_8,426 10,761 - 4,984 1987 50,176 74,869 11,405 - 2,608 1986 48,342 45,122 2,480 - 2,995 1985 37,306 35,000 1,927 - 2,140 1984 29,116 35,338 1,927 - 4,314 1983 22,244 48,897 1,927 - 1,127 1982 5,897 41,274 6,469 - 354 1981 8,084 38,786 6,469 - 285 1980 4,678 40,065 6,469 - 556 m m r bw r. an 0 sr do ft No an im i. an .. STATISTICAL SECTION im 1 1 STATISTICAL INFORMATION CITY OF EDGEWATER, FLORIDA COMMENTS RELATIVE TO STATISTICAL SECTION SEPTEMBER 30, 1989 The following statistical tables that are recommended for inclusion by the National Council on Governmental Accounting Statement No. 1 are not included for the reasons stated below: A . Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita - Last Ten Fiscal Years - The City has not had any general bonded debt over the past ten fiscal years. B. Ratio of Annual Debt Service for General Bonded Debt to Total General Expenditures - Last Ten Fiscal years - The City has not had any general bonded debt over the past ten fiscal years. (1) Includes General, Special Revenue and Capital Projects Funds. (2) Includes construction of Florida Shores street paving projects. (3) Segregation of capital outlays from functional classifications began in 1988. M I 1 1 TABLE I CITY OF EDGEWATER, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS SEPTEMBER 30, 1989 FISCAL GENERAL PUBLIC PHYSICAL YEARENDED TOTAL GO VERNMENT SAFF"f'V E NVIRONMENT 1980 $ 936,594 $ 177,447 $ 383,357 $ 21,320 1981 1,050,009 211,366 442,576 59,196 1982 1,158,222 237,097 433,229 52,682 1983 1,600,292 329,754 527,916 - 1984 1,523,711 396,617 538,881 - 1985 2,443,035 420,393 831,816 - 1986 2,592,713 531,380 864,499 38,322 1987 3,223,032 563,612 1,062,038 �: - 1988 3,433,993 586,022 1,117,322 - am 1989 3,782,620 686,494 1,283,362 - (1) Includes General, Special Revenue and Capital Projects Funds. (2) Includes construction of Florida Shores street paving projects. (3) Segregation of capital outlays from functional classifications began in 1988. M I 1 1 m CULTURE CLAIMS TRANSPOR- ECONOMIC AND CAPITAL DEBT AND TATION ENVIRONMENT RECREATION OUTLAY SERVICE JUDGEMENT'S $ 283,366 $ 74 $ 71,030 $ - $ - $ - 258,533 591 77,747 - - - 336,917 - 98,297 - - - 634,378(2) - 108,244 - - - 437,754 - 97,054 - 3,390 50,015 r 805,617(2) - 330,696 - 54,513 - 783,300(2) - 296,370 - 78,842 - 1,225,250 (2) - 316,780 - 55,352 - 615,827 - 242,247 841,779 - 30,796 ' 758,808 - 303,404 741,312 9,240 - 89. TABLE II CITY OF EDGEWATER, FLORIDA GENERAL GOVERNMENTAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS SEPTEMBER 30, 1989 wm (1) Includes General, Special Revenue and Capital Projects Funds. aft 90. M am, LICENSES INTER - FISCAL YEAR ENDED TOTAL TAXES AND Foam GOVERNMENTAL REVENUES 1980 $ 890,119 $ 416,211 $ 83,269 $ 313,992 1981 1,091,971 571,919 80,280 350,577 1982 1,220,030 672,700 53,043 413,400 1983 1, 510 ,736 681,859 122,433 541,104 1984 2,218,200 867,873 142,809 671,479 1985 2,323,471 953,203 135,223 833,796 1986 2,595,497 1,305,677 130,025 748,089 1987 3,253,662 1,589,138 128,991 733,038 1988 3,539,981 1,824,809 165,491 1,103,715 1989 3,936,004 2,630,784 209,853 522,700 (1) Includes General, Special Revenue and Capital Projects Funds. aft 90. M am, CHARGES FINES FOR SERVICES AND FKFFErTURKS MISCELLANEOUS REVENUE $ 31,972 $ 18,596 $ 26,079 26,178 22,274 40,743 18,004 23,405 39,478 88,297 27,189 49,854 197,493 27,799 310,747 194,303 28,787 178,159 199,135 33,337 179,234 336,240 66,366 399,889 245,786 86,821 113,359 ' 275,850 98,124 198,693 91. TABLE III CITY OF EDGEWATER, FLORIDA PROPERTY TAX. LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS SEPTEMBER 30, 1989 PERCENT FISCAL TOTAL TOTAL TAX OF LEVY YEAR ENDED TAXL COLLECTIONS CO i F.(�TE _ 1980 $ 332,899 $ 323,065 97.04 1981 466,406 451,509 96.81 1982 523,185 507,437 96.99 1983 529,176 515,705 97.45 1984 601,143 581,578 96.75 1985 673,189 653,256 97.04 1986 889,078 865,559 97.35 1987 1,159,436 1,118,628 96.48 1988 1,327,745 1,297,075 97.69 1989 1,232,093 1,192,780 96.81 (1) Each fiscal year contains data from the ad valorem assessment roll of the preceding year (i.e., fiscal year 1989 contains the 1988 assessment roll tax collections). FA TABLE IV CITY OF EDGEWATER, FLORIDA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (1) LAST TEN FISCAL YEARS SEPTEMBER 30, 1989 (In thousands) .� (2) FISCAL YEAR ENDED ASSESSED VALUE ESTIMATED ACTUAL VALUE RATIO OF TOTAL ASSESSED TO TOTAL ESTIMATED ACI TAT VALUE (3) ASSESSED TAXABLE VA LUE i E RATIO OF TOTAL ASSESSED TAXABLE VALUE TO ESTIMATED A C" f'i TAT VALU 1980 $ 72,424 $ 72,424 100.00 $ 55,781 77.02 1981 93,417 93,417 100.00 64,128 80.31 1982 129,691 129,691 100.00 89,403 68.94 1983 151,838 151,838 100.00 104,808 69.03 1984 169,936 169,936 100.00 103,645 60.99 1985 190,987 190,987 100.00 123,725 64.78 1986 229,290 229,290 100.00 153,289 66.85 1987 269,178 269,178 100.00 183,993 68.35 .� 1988 304,468 304,468 100.00 213,013 69.96 1989 331,993 331,993 100.00 232,917 70.16 (1) Obtained from the Revised Recapitulation of the Ad Valorem Assessment Rolls of Edgewater, Florida provided by Volusia County, Florida Finance Department. (2) Each fiscal year contains the ad valorem assessment roll of the preceding year (i.e., fiscal year 1989, contains data on the 1988 assessment roll). (3) Assessed taxable values for all fiscal years presented are stated net of the constitutional homestead exemption (pre -1981 - $5,000, 1981 - $15,000, 1983 - $20,000, post -1983 - $25,000). 1 1 1 93. Tax rates per $1,000 of assessed taxable values am S& WIN 94. im TABLE V CITY OF EDGEWATER, FLORIDA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS SEP'T'EMBER 30, 1989 ..� ST. JOHNS FISCAL EDGEWATER SOUTHEAST VOLUSIA INLET AND WATER MANAGE - YEAR ENDED GENERAL SCHOOL VOLUSIA HOSPITAL MOSQUITO PORT MENT FUND DISTRICT C OUNTY DISTRICT CONTROL AUTHORITY DISTRICT TOTAL 1980 5.968 6.990 4.979 2.362 0.574 0.452 0.139 21.464 1981 7.273 8.477 5.368 2.016 0.546 0.399 0.088 24.167 r 1982 5.852 7.670 5.131 2.020 0.464 0.108 1.121 22.366 rr 1983 5.049 7.011 4.433 1.860 0.408 0.368 0.290 19.419 1984 5.800 7.043 4.458 1.774 0.340 0.354 0.284 20.053 1985 5.441 7.911 4.133 2.149 0.278 0.327 0.326 20.565 1986 5.800 8.210 4.335 1.923 0.265 0.311 0.206 21.050 1987 6.300 8.637 4.064 1.715 0.272 0.291 0.221 21.500 1988 6.300 8.439 4.993 1.554 0.260 0.108 0.207 21.861 1989 5.300 8.803 5.122 1.898 0.309 0.144 0.281 21.857 ., Tax rates per $1,000 of assessed taxable values am S& WIN 94. im TABLE VI CITY OF EDGEWATER, FLORIDA SPECIAL ASSESSMENTS COLLECTIONS LAST TEN FISCAL YEARS SEPTEMBER 30, 1989 CURRENT CURRENT FISCAL YEAR ASSESSMENTS ASSESSMENTS ENDED DUE COLLECIEED I•:1 I •: 218,764 21,231 97,518 95,607 11,254 7,418 199,869 21,231 62,652 239,732 107,969 8,882 95. TABLE VII CITY OF EDGEWATER, FLORIDA COMPUTATION OF OVERLAPPING DEBT SEPTEMBER 30, 1989 PERCENTAGE APPLICABLE CITY OF TO THE EDGEWATER DIRECT AND OVERLAPPING NET DEBT CITY OF SHARE OF COVERNAIENZS O ISTANDING ?WATER DEBT Volusia County Endangered Land $ 18,501,588 2.47% $ 457,063 Volusia County School District 155,785,000 2.47% 3,847,890 Southeast Volusia Hospital District 246,600 15.42% 38,026 TOTAL OVERLAPPING DEBT $ 4,342,979 (1) Data provided by above agencies. (2) The city does not have any general obligation long -term debt outstanding. .. TABLE VIII CITY OF EDGEWATER, FLORIDA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS SEPTEMBER 30, 1989 (2) (3) COUNTY (1) REGI- PER UNEMPLOY- SCHOOL (6) (7) FISCAL ESTIMATED STERED CAPITA MENT ENROLL- PERCENT MEDIAN YEAR POPULATION VOTERS INCOME RATE (5) MENT ATTENDANCE AGE 1980 6,726 3,738 $ 8,305 6.5% 633 97 42.2 1981 7,341 3,924 9,396 4.8 669 97 - 1982 7,846 4,109 9,916 6.8 676 98 - 1983 8,138 4,368 10,631 6.7 709 97 - 1984 8,879 5,159 11,718 5.2 860 97 - 1985 9,996 5,559 11,054(4) 5.1 992 96 - 1986 11,039 5,864 11,719(4) 5.2 940 97 - 1987 11,718 6,326 11,719(4) 4.2 1,021 97 40.6 1988 12,461 7,249 13,041 4.4 1,094 97 - 1989 13,313 7,262 13,895 4.5 1,227 97 - (1) Obtained from University of Florida, Bureau of Economics and Business Research. (2) Obtained from Volusia County Supervisor of Elections. (3) Obtained from U.S. Department of Commerce, Bureau of Economic Analysis. (4) Estimated, amounts not available. (5) State of Florida, Department of Labor and Employment Security. (6) Volusia County School Board - includes grades K -5, Edgewater Elementary School (only one public school within corporate limits). (7) Census Bureau (1980) and New Smyrna Beach, Edgewater, Oak Hill, Chamber of Commerce Age Distribution (1987 - CACI Source book). 97. TABLE IX CITY OF EDGEWATER, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS SEPTEMBER 30, 1989 (In thousands) COMMERCIAL RESIDENTIAL DEPOSITS (2) ASSESSED FISCAL CONSTRUCTION CONSTRUCTION SAVINGS VALUE YEAR UNITS VALUE UNITS VALUE BANKS(1) AND LO (3) 1980 10 $ 1,093 554 $ 11,126 $ - $ 17,246 $ 72,424 1981 29 1,678 512 9,899 - 21,436 93,417 1982 40 1,454 314 4,803 4,206 23,009 129,691 1983 23 4,185 654 15,882 7,442 27,652 151,838 1984 46 2,588 712 24,974 9,446 40,223 169,936 1985 15 1,456 532 18,294 16,031 48,730 190,987 1986 15 1,818 443 16,235 20,256 48,563 229,290 1987 13 884 339 15,261 24,778 54,351 269,178 1988 9 1,334 324 20,551 30,356 59,370 304,468 1989 8 2,228 374 22,459 42,142 64,014 331,993 (1) The City's first commercial bank was not opened until December 1981. (2) Provided directly from bank and savings and loan associations. (3) Obtained from revised recapitulation of the ad valorem assessment rolls of the City of Edgewater. TABLE X CITY OF EDGEWATER, FLORIDA SUMMARY OF TEN LARGEST SINGLE UNIT WATER USERS SEPTEMBER 30, 1989 AVERAGE CONSUMPTION PERCENT OF PER MONTH TOTAL GALLONS CUSTOMERS (GALLONS) (1) CONSUMED Eastern Shores Mobile Village 448,00 .108 % Coronado Paint 207,000 .050 Pyramid Park Corp. 142,000 .034 Carters Motel & Village 129,000 .031 Board of Public Instruction 125,000 .030 James Powell 112,000 .027 Friendly Shores (Trailer Park) 110,000 .027 Sherman Taylor (Trailer Park) 99,000 .024 Becks Enterprises 91,000 .022 Edgewater Mobile Home Park 64.000 .01 ,.. 1,527,000 .368 �J (1) Based on individual meter connections per City of Edgewater, Florida, records. The total average monthly consumption dropped from the previous year (from 1,751,000). This occurrence can be partially explained as follows: a. Flounder Associates, a laundromat, went out of business. b. The increase in water rates - both basic and per gallon. c. Water restrictions implemented by the St. Johns River Water Management District, Volusia County, and the City of Edgewater. TABLE XI CITY OF EDGEWATER, FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30, 1989 PERCENT OF ASSESSED TOTAL ASSESSED T YF'R VAI_1JATION VALUATION T TATION Southern Bell Telephone Co. $ 4,494,437 1.35 % Florida Power & Light 4,016,131 1.21 Florida Shores Partners, Ltd. 2,788,610 0,84 Coronado Paint Company, Inc. 2,482,212 0.75 Eastern Shores Mobile Village 1,174,243 0.35 Cablevision Industries of Central. Florida 1,081,381 0.33 Edgewater Park Apartments, Ltd. 835,164 0.25 James and Rosemary Carder 720,187 0.22 John Wilber and Allan K. Dyer 528,485 0.16 $18,120,850 5.46% Source: 1988 ad valorem tax rolls of the City of Edgewater, Florida. 11 101. TABLE XII CITY OF EDGEWATER, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 1989 The City of Edgewater lies just south of New Smyrna Beach, along the Atlantic coastline. Beginning as the small village of Hawk's Park with 115 permanent residents in 1871, the name was formally changed to Edgewater in 1925. The apiaries of the early days evolved into a large honey company which exports internationally. A large paint factory, a thriving building industry, boat building, garment factories and other light manufacturing provide employment. A friendly city with a small town flavor, Edgewater has a wide variety of residential options. CITY OPERATIONS: COMMUNITY FACILITIES: .� Police Department: Nearest Commercial Airport: Sworn Officers 23 Daytona Beach Regional Civilian Employees 9 Financial Institutions 4 Fire Department: Total branches 4 Insurance rating Class 7 Churches (total) 9 Number of stations 2 Libraries 1 Full time firefighters (6- 10/1/89) 0 Post Office locations 1 Volunteer firefighters 40 Electric service: Civilian employees 1 Florida Power & Light Telephone Service: City Parks 14 Southern Bell Park acreage 81 Cable TV Service: '— Cablevision, Inc. GARBAGEIMA►SH COLLECTION: Pre Effective Pickups /wk 10/1189 1011189 Type: 2 $ 7.00 $10.00 Residential service 2 $ 8.50 $11.50 Commercial /Industrial service WATER SERVICE: SEWER SERVICE: Source: Wells System Type: Extended Aireation Daily capacity: 2.4 mgd Average Daily Use: .75 mgd .Average daily demand 1.25 mgd Peak Use: 2.5 mgd Treatment Lime softening Avg. Capacity Used Daily 75 % Residential and Commercial Rates EFFECTIVE 10/1/88 Consumption WATER SEWER 0 - 2,000 gallons $ 5.85 $ 7.25 Additional 1,000 gallons $ 2.05 $ 2.60 Stormwater Management Fee EFFECTIVE 10/1/89 ~° Per Equivalent Drainage Unit (EDU) Without site mitigation $ 3.00 With site mitigation $1.46 Sources: Volusia County, Florida, County Data Profile 1989 -1990 Compiled by the Volusia County Business Development Corporation. 101. 1 1 1 1 1 �l n �l L� 1 OTHER REPORTS Ernst &Young Box N 149 South Ridgewood Avenue Daytona Beach. Florida 32114 Telephone: (904) 255 -1981 Fax: (904) 255 -8030 to The Honorable Mayor, City Council and City Manager City of Edgewater, Florida REPORT ON INTERNAL ACCOUNTING CONTROLS AND MANAGEMENT COMMENTS We have audited the general purpose financial statements of the City of in Edgewater, Florida, for the year ended September 30, 1989, and have issued our report thereon dated December 14, 1989. As part of our audit, we made a study and evaluation of the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial and compliance audits contained in the Government Auditing Standards (1988), issued by the Comptroller General of the United States. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: General Ledger/EDP Investments Billings, Receivables and Cash Receipts Inventory Purchasing Fixed Assets Accounts Payable and Cash Disbursements Long -Term Debt Payroll and Personnel Budget Our study included all of the control categories listed above. The purpose of our err study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the City's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. The management of the City of Edgewater, Florida is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial ' statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk ' that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. ' 105. of Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. ri Accordingly, we do not express an opinion on the system of internal accounting control of the City of Edgewater, Florida taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and evaluation disclosed no condition that we believe to be a material weakness. MANAGEMENT COMMENTS Our Report on Internal Accounting Controls has been presented in the previous section of this report. The purpose of this section is to disclose conditions which do not materially affect the City's financial statements and disclose other items as required by the Rules of the Auditor General, State of Florida. The following comments and recommendations are made to assist the City Council and management in administering future operations. Appropriate action was taken on all other comments incorporated in the 1988 management letter except for the comments noted in this report. REPORTED IN PRIOR YEAR'S REPORT ON INTERNAL ACCOUNTIN CONTROLS AND MANAGEMENT COMMENTS. NOT IMPLEMENTED AS OF SEPTEMBER 30, 1989 We noted, during the course of our audit of the financial statements of the City, that certain recommendations and suggested accounting procedures, as outlined in the Management Comments section of the Report on Internal Accounting Controls and Management Comments for the year ended September 30, 1988, described below, are still in need of attention. We understand that action to address this matter has already begun. SELF INSURANCE FUND The City did not record a liability for incurred but not reported claims and, furthermore, relied solely on internal expertise to evaluate the adequacy of established self insurance reserves for the current fiscal year. We understand that the City has accepted a proposal from an independent insurance consultation service to examine the City's self insurance program in the next fiscal year, and we encourage the City to maintain its effort in this regard to ensure establishment of adequate reserves and for presentation of fund liabilities. 106. -� VA L CURRENT YEAR FINDINGS During the course of our audit of the financial statements of the City, certain matters came to our attention. We offer the following suggestions which we feel could both strengthen controls and increase operating efficiency. After you consider these suggestions, we are available to discuss methods of implementation at your convenience. L DATA PROCESSING ' As a component of the contingency plan, the City should enter into formal agreements for the use of off -site systems. The City should also consider off -site storage of copies of all critical materials (manuals, software, grandfather backups, etc.). The plan should also consider the manner in which data processing driven services would be delivered during a crisis which results in extended loss of computer facility services. REPURCHASE AGREEMENTS Collateral which secures the City's repurchase agreements are not specifically identified in the City's name and are not held by a third party. Although this security arrangement is adequate, more favorable terms are commonly negotiated with banks and investing institutions to minimize investment risks. 107. A. Data Processing Management and Planning: City executives charged with the responsibility for planning and implementing data processing department activities in a ' manner which satisfy the needs of the departments users should consider development of formal short and long -range plans which anticipate the needs of the City's changing business environment. Short -range plans should identify tasks attainable during the next year. A similar long -range plan should be established for ' the next three to five years. Tasks described in the short -range plan should be compatible with the goals described in the long- ' range plan and should be appropriately prioritized. B. Contingency Plan: The City's contingency plan is a vendor driven plan which relies exclusively on an external hardware provider for support. We recommend that the City develop a more comprehensive plan to direct crisis oriented activities resulting from facility loss. ' As a component of the contingency plan, the City should enter into formal agreements for the use of off -site systems. The City should also consider off -site storage of copies of all critical materials (manuals, software, grandfather backups, etc.). The plan should also consider the manner in which data processing driven services would be delivered during a crisis which results in extended loss of computer facility services. REPURCHASE AGREEMENTS Collateral which secures the City's repurchase agreements are not specifically identified in the City's name and are not held by a third party. Although this security arrangement is adequate, more favorable terms are commonly negotiated with banks and investing institutions to minimize investment risks. 107. Management should consider negotiation of its master repurchase agreements relative to security to include third -part custody of specifically identified collateral maintained in the City's name. This would result in decreased risk for repurchase agreements since these funds are not collateralized with FDIC insurance or with the state collateral pool. ANNUAL FINANCIAL REPORT OF UNITS OF LOCAL GOVERNMENT, 1988 The City filed its annual financial report with the Department of Banking and Finance for the fiscal year ended September 30, 1988, as required by Section 218.32 of the Florida Statutes. Based on our review of the financial information contained in that report, no material differences were found in comparing this information to that of the City's audited financial statements. We believe that implementation of the above recommendations will improve the efficiency and effectiveness of your accounting system and operations. This report is intended solely for the use of management and the Auditor General, State of Florida. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Council, is a matter of Public Record. We wish to thank the City Manager, Finance Director, department heads and all their staff for their assistance and cooperation during our recent audit. If we can be of any further assistance or service regarding these matters, please do not hesitate to call us. �� * t7 Certified Public Accountants December 14, 1989 1: 1 Ernst &Young Box N 149 South Ridgewood Avenue Daytona Beach, Florida 32114 Telephone: (904) 255 -1981 Fax: (904) 255 -8030 69 The Honorable Mayor, City Council No and City Manager City of Edgewater, Florida We have audited the general purpose financial statements of the City of Edgewater, Florida, for the year ended September 30, 1989, and have issued our report thereon dated December 14, 1989. Our audit was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Government Auditing Standards (1988), issued by the Comptroller General of the United States and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the City of Edgewater, Florida, is responsible for the City's compliance with laws and regulations. In connection with our audit referred to above, we selected and tested transactions and records to determine the City's compliance with laws and regulations noncompliance with which could have a material effect on the general purpose financial statements of the City. The results of our tests indicate that for the items tested, the City of Edgewater, Florida, complied with those provisions of laws and regulations noncompliance with which could have a material effect on the general purpose financial ' statements. Nothing came to our attention that caused us to believe that for the items not tested the City of Edgewater, Florida, was not in compliance with laws or regulations noncompliance with which could have a material effect on the City's general purpose financial statements. Certified Public Accountants December 14, 1989 an 109. 1W ON ille Ernst &Young December 14, 1989 The Honorable Mayor, City Council "r and City Manager City of Edgewater, Florida Box N 149 South Ridgewood Avenue Daytona Beach, Florida 32114 Telephone: (904) 255 -1981 Fax: (904) 255 -8030 as REPORT ON COMPLIANCE WITH CPE REQUIREMENTS W. In accordance with Florida Statutes Section 11.45(3)(a)4.p., we are required to designate the auditor -in- charge of your engagement and confirm the educational criteria have been met. The auditor -in- charge of your engagement is John P. Vodenicker, CPA, and he has attended at least 24 hours of continuing professional education programs directly related to the governmental environment and government auditing within the immediate preceding three r years. Very truly yours, No 1 1 1 111.