07-12-2010 - Workshop/Special
A GENERAL FUND AND FUNDED BUDGET WORKSHOP WILL BE HELD AT 5:00 P.M.,
PRIOR TO THE SPECIAL COUNCIL MEETING, IN COUNCIL CHAMBERS
Voting Order
Councilwoman Rogers
Councilwoman Bennington
Councilwoman Rhodes
Councilman Cooper
Mayor Thomas
AGENDA
CITY COUNCIL OF EDGEW A TER
SPECIAL MEETING
July 12,2010
7:00 P.M.
COUNCIL CHAMBERS
We respectfully request that all electronic devices are set for no audible notification.
1. CALL TO ORDER, ROLL CALL, PLEDGE OF ALLEGIANCE, INVOCATION
2. OTHER BUSINESS
a. Authorization for the City Manager to advertise the Maximum Millage rates for ad
valorem and voted debt service for Fiscal Year 201012011.
b. Approval of Change Order No. 1 for $24,465 to Bil1co Construction, Inc., for the
Hawks Park Amphitheater Roof.
3. ADJOURN
Pursuant to Chapter 286. F.s.. if an individual decides to appeal any decision made with respect to any mailer considered at a
meeting or hearing. that individual will need a record of the proceedings and will need to ensure that a verbatim record of the proceedings is
made. The City does not prepare or provide such record.
In accordance with the Americans with Disabilities Act. persons needing assistance to participate in any of these proceedings should
contact City Clerk Bonnie Wenzel. 104 N. Riverside Drive. Edgewater. Florida. telephone number 386-424-2400 x 1101. 5 days prior to the
meeting date. If you are hearing or voice impaired. contact the relay operator at 1-800-955-8771.
AGENDA REQUEST
Date: July 12, 2010
PUBLIC HEARING RESOLUTION ORDINANCE
CONSENT OTHER BUSINESS x CORRESPONDENCE
ITEM DESCRIPTION:
Maximum Millage Levy for Fiscal Year October 1, 2010 through September 30, 2011.
BACKGROUND:
In conjunction with the Notice of Proposed Property Taxes (TRIM Notice) pursuant to section 200.069, F.S., the
Council must authorize advertisement of the maximum millage rate for the upcoming budget year. The current
operating millage rate is $6.36 per $1,000.00 assessed value; the Current year rolled -back millage rate is $7.7048
per $1,000.00 assessed value. With the current year rolled -back rate, the preliminary ad valorem revenues for
the Fiscal year 2011 would be budgeted in the amount of $5,014,625.
The current Voted Debt Service millage rate is $0.0382 per $1,000.00 assessed value. For Fiscal year 2011 the
millage rate levy should be $0.0475 per $1,000.00 assessed value based on the sale of the Limited General
Obligation Note Payable of 2007. The revenues for the Fiscal year 2011 would be budgeted in the amount of
$30,915.
STAFF RECOMMENDATION:
Staff recommends City Council set the millage rates for Fiscal year 2011 to be advertised.
ACTION REQUESTED:
Motion for City Manager to advertise the Maximum Millage rates for ad valorem and voted debt service.
FINANCIAL IMPACT:
(FINANCE DIRECTOR)
(SPECIFY IF BUDGET AMENDMENT IS REQUIRED)
PREVIOUS AGENDA ITEM:
DATE:
Resp tfull ubmitted, 1
�C
J than C. McKinney
ance Director
YES _ NO x
AGENDA ITEM NO.
Concurrence
Robin Matusick
Paralegal
Tracey rlow
City nager
MAXIMUM MILLAGE LEVY CALCULATION
PRELIMINARY DISCLOSURE
For municipal governments, counties, and special districts
OF REVENUE
DR- 420MM -P
R. 6/10
Rule 12D- 16.002
Florida Administrative Code
Year 2010
County VOLUSIA
Principal Authority EDGEWATER
Taxing Authority EDGEWATER OPERATING
1
Is your taxing authority a municipality or independent special district that has levied ad
valorem taxes for less than 5 years?
Yes F] No
(
IF YES, J STOP HERE. SIGN AND SUBMIT. You are not subject to a millage limitation.
2.
Current year rolled -back rate from Current Year Form DR -420, Line 16
7.7048 per $1,000
(2)
3.
Prior year maximum millage rate with a majority vote from 2009 Form DR- 420MM, Line 13
7.3079 per $1,000
(3)
4.
Prior year operating millage rate from Current Year Form DR -420, Line 10
6.3600 per $1,000
(4)
If Line 4 is equal to or greater than Line 3, skip to Line 11. if less, continue to tine 5.
Adjust rolled -back rate based on prior year majority -vote maximum millage rate
5.
Prior year final gross taxable value from Current Year Form DR -420, Line 7
$ 822,687,956
(5)
6 '
Prior year maximum ad valorem proceeds with majority vote
(Line 3 multiplied by Line 5 divided by 1,000)
$ 6,012,121
(
7
Amount, if any, paid or applied in prior year as a consequence of an obligation measured
by a dedicated increment value from Current Year Form DR -420 Line 12
$ 0
(7)
8.
Adjusted prior year ad valorem proceeds with majority vote (Line 6 minus Line 7)
$ 6,012,121
(8)
9.
Adjusted current year taxable value from Current Year form DR -420 Line 15
$ 679,098,616
(
10.
Adjusted current year rolled -back rate (line 8 divided by Line 9, multiplied by 1,000)
8.8531 per $1,000
(10)
Calculate maximum millage levy
11.
Rolled -back rate to be used for maximum millage levy calculation
per $1,000
(11)
(Enter Line 10 if adjusted or else enter Line 2)
8.8531
12.
Change in per capita Florida personal income (See Line 72 Instructions)
.9811
(12)
13.
Majority vote maximum millage rate allowed (Line I7 multiplied by Line 72)
8.6858 per $1,000
(13)
14.
Two - thirds vote maximum millage rate allowed (Multiply Line 73 by 1.10)
9.5544 per $1,000
(14)
15.
Current year proposed millage rate
0.0000 per $1,000
(15)
16.
Minimum vote required to levy proposed millage: (Check one)
(16)
a. Majority vote of the governing body: Check here, if Line 15 is less than or equal to Line 13. The maximum millage rate is
5_(1
equal to the majority vote maximum rate. Enter Line 13 on Line 17.
❑ b. Two - thirds vote of governing body: Check here if Line 15 is less than or equal to Line 14, but greater than Line 13. The
maximum millage rate is equal to proposed rate. Enter Line 15 on Line 17.
Unanimous vote of the governing body, or 3/4 vote if nine members or more: Check here if Line 15 is greater than Line 14.
El
The
The maximum millage rate is equal to the proposed rate. Enter Line 15 on Line 17.
F] d. Referendum: The maximum millage rate is equal to the proposed rate. Enter Line 15 on Line 17.
17.
The selection on Line 16 allows a maximum millage rate of
per $1,000
(17)
(Enter rate indicated by choice on Line 76)
g,685g
18.
Current year gross taxable value from Current Year Form DR -420, Line 4
$ 685,099,203
(18)
Continued on page 2
DR- 420MM -P
R. 6/10
Page 2
19.
Current year proposed taxes (Line 15 multiplied by Line 18, divided by 1,000)
$ 0
(19)
20.
Total taxes levied at the maximum millage rate (Line 17 multiplied by Line 18, divided by
$
(20)
1,000)
5,950,635
DEPENDENT SPECIAL DISTRICTS AND MSTUs I STOP HERE. SIGN AND SUBMIT.
21
Enter the current year proposed taxes of all dependent special districts & MSTUs levying a
$
(21)
millage (The sum of ai/ Lines 19 from each district's Form DR -420 MM -P)
0
22.
Total current year proposed taxes (Line 19 plus Line 21)
$ 0
(22)
Total Maximum Taxes
23
Enter the taxes at the maximum millage of all dependent special districts & MSTUs levying
$
(23)
a millage (The sum of alt Lines 20 from each district's Form DR -420 MM -P)
0
24.
Total taxes at maximum millage rate (Line20 plus line23)
$ 5,950,635
(24)
Total Maximum Versus Total Taxes Levied
25
Are total current year proposed taxes on Line 22 equal to or less than total taxes at the
Yes No
(25)
maximum millage rate on Line 24? (Check one)
Taxing Authority Certification
1 certify the millages and rates are correct to the best of my knowledge. The millages comply
with the provisions of s. 200.065 and the provisions of either s. 200.071 or s. 200.081, F.S.
Signature of Chief Administrative Officer
Date
W
cc
w
Title
Contact Name
=
FINANCE DIRECTOR
JONATHAN MCKINNEY
Z
Mailin Address
Physical sical Address Y
N
104 NORTH RIVERSIDE DR
City, State, Zip
Phone Number
Fax Number
EDGEWATER, FL 32132
3864242400
Complete and ♦ ►' / ' Maximum Millage ♦ r
Preliminary Disclosure, to your property appraiser with the Form DR-420,
Certific of r r ♦ Va lue.
Instructions on page 3
CERTIFICATION OF TAXABLE VALUE DR -420
*� �! R. 6/10
€XF�V %r Rule 12D- 16.002
01: REVFr UI. Florida Administrative Code
Year 2010
County VOLUSIA
Principal Authority EDGEWATER
Taxing Authority EDGEWATER OPERATING
SECTION I: COMPLETED BY PROPERTY APPRAISER
1.
Current year taxable value of real property for operating purposes
$ 643,030,723
(
2.
Current year taxable value of personal property for operating purposes
$ 39,341,881
(
3.
Current year taxable value of centrally assessed property for operating purposes
$ 2,726,599
(
4.
Current year gross taxable value for operating purposes (Line 1 plus Line 2 plus Line 3)
$ 685,099,203
(
(13)
Current year net new taxable value (Add new construction, additions, rehabilitative
Dedicated increment value, if any (Sum of either Line 6b or Line 7e for all DR- 420TIFforms)
$ 0
5.
improvements increasing assessed value by at least 100 %, annexations, and tangible
$ 6,000,587
(
(15)
personal property value over 115% of the previous year's value. Subtract deletions.)
Current year rolled-back rate (Line 13 divided by Line 15, multiplied by 1,000)
7.7048 per $1000
6.
Current year adjusted taxable value (Line 4 minus Line 5)
$ 679,098,616
(
7.
Prior year FINAL gross taxable value from prior year applicable Form DR -403 series
$ 822,687,956
(
8 '
Does the taxing authority include tax increment financing areas? If yes, enter number of
Yes No
Number
(8)
worksheets (DR- 420TIF) attached. If none, enter 0
0
Does the taxing authority levy a voted debt service millage or a millage voted for 2 years or
Number
9.
less under s. 9(b), Article VII, State Constitution? (If yes, enter the number of forms
0✓ Yes ❑ No
(9)
DR- 420DEBT, Certification of Voted Debt Millage for each debt service levy.)
1
Property Appraiser Certification
I certify the taxable values above are correct to the best of my knowledge.
W
CC
Signature of Property Appraiser
Date
W
V1 Z
SECTION II: COMPLETED BY TAXING AUTHORITY
If this portion of the form is not completed in FULL your authority will be denied TRIM certification and
possibly lose its millage levy privilege for the tax year. If any line is not applicable, -0 -.
10.
Prior year operating millage levy (tfprior year millage was adjusted then use adjusted millage
from Form DR -422)
6.3600 per $1,000
(10)
11.
Prior year ad valorem proceeds (Line 7multiplied by Line 10, divided by 1,000)
$ 5,232,295
(11)
12
Amount, if any, paid or applied in prior year as a consequence of an obligation measured by
a dedicated increment value (Sum of either Lines 6c or Line 7a for all DR- 420TIF forms)
$ 0
(12)
13.
Adjusted prior year ad valorem proceeds (Line 11 minus Line 12)
$ 5,232,295
(13)
14.
Dedicated increment value, if any (Sum of either Line 6b or Line 7e for all DR- 420TIFforms)
$ 0
(14)
15.
Adjusted current year taxable value (Line 6 minus Line 14)
$ 679,098,616
(15)
16.
Current year rolled-back rate (Line 13 divided by Line 15, multiplied by 1,000)
7.7048 per $1000
(16)
17.
Current year proposed operating millage rate
0.0000 per $1000
(17)
18
Total taxes to be levied at proposed millage rate (Line 17 multiplied by Line 4, divided by
1,000)
$ 0
(18)
Continued on page 2
DR-420
R. 6/10
Paqe 2
First public
County Independent Special District
Time
19.
TYPE of principal authority (check one)
(19)
$ 5,232,295
Municipality Water Management District
DR -420 forms)
❑✓ Principal Authority Dependent Special District
20.
Applicable taxing authority (check one)
(20)
(23)
MSTU Water Management District Basin
Current year aggregate rolled-back taxes (Line 4 multiplied by Line 23, divided by 1,000)
21.
Is millage levied in more than one county? (check one) Yes ./❑ No
(21)
DEPENDENT SPECIAL DISTRICTS AND MSTUS STOP HERE - SIGN AND SUBMIT
$ 0
First public
Enter the total adjusted prior year ad valorem proceeds of the principal authority, all
Time
Place
22.
dependent special districts, and MSTUs levying a millage. (Thesum ofLine 13 from all
$ 5,232,295
(22)
DR -420 forms)
23•
Current year aggregate rolled -back rate (Line 22 divided by Line 15, multiplied by 1,000)
7.7048 per $1,000
(23)
24•
Current year aggregate rolled-back taxes (Line 4 multiplied by Line 23, divided by 1,000)
$ 5,278,552
(24)
25
Enter total of all operating ad valorem taxes proposed to be levied by the principal taxing
$ 0
(25)
s. 200.071 or s. 200.081, F.S.
authority, all dependent districts, and MSTUs, if any. (Total of Line 18 from ail DR -420 forms)
Signature of Chief Administrative Officer
Date
26
Current year proposed aggregate millage rate (Line 25 divided by Line 4, multiplied
0.0000 per $1,000
(26)
cc
by 1,000)
W
Current year proposed rate as a percent change of rolled -back rate (Line 26 divided by Line
%
(27)
27
f, multiplied by 100)
- 100.00
Contact Name
First public
Date
Time
Place
budget
hearing
I certify the millages and rates are correct to the best of my knowledge. The
Taxing Authority Certification
millages comply with the provisions of s. 200.065 and the provisions of either
s. 200.071 or s. 200.081, F.S.
Signature of Chief Administrative Officer
Date
W
cc
W
=
Title
Contact Name
Z
kD
FINANCE DIRECTOR
JONATHAN MCKINNEY
N
Mailing Address
Physical Address
104 NORTH RIVERSIDE DR
City, State, Zip
Phone Number
Fax Number
EDGEWATER,FL32132
3864242400
Instructions on page 3
r
cj RLVIAL::
CERTIFICATION OF VOTED DEBT MILLAGE
DR- 420DEBT
R. 6/10
Rule 12D- 16.002
Florida Administrative Code
Year 2010
County VOLUSIA
I certify the taxable values above are correct to the best of my knowledge.
cc
l7 w
Principal Authority EDGEWATER
Taxing Authority
EDGEWATER OPERATING
Levy Description EDGEWATER I &S 2005
SECTION II: COMPLETED BY TAXING AUTHORITY
5.
SECTION I: COMPLETED BY PROPERTY APPRAISER
0.0475 per $1,000
(5)
1.
Current year taxable value of real property for operating purposes
$ 643,030,723
(1)
2.
Current year taxable value of personal property for operating purposes
$ 39,341,881
(
3.
Current year taxable value of centrally assessed property for operating purposes
$ 2,726,599
(
4.
Current year gross taxable value for operating purposes (Line 1 plus Line 2 plus Line 3)
$ 685,099,203
(4)
Z w
Property Appraiser Certification
I certify the taxable values above are correct to the best of my knowledge.
cc
l7 w
Signature of Property Appraiser
Date
to 2
SECTION II: COMPLETED BY TAXING AUTHORITY
5.
Current year proposed voted debt millage rate
0.0475 per $1,000
(5)
6
Current year proposed millage voted for 2 years or less under s. 9(b) Article VII, State
per $1,000
(6)
Constitution
0.0000
Taxing Authority Certification
I certify the proposed millages and rates are correct to the best of my knowledge.
Signature of Chief Administrative Officer
Date
W
Q:
W
Title
Contact Name
=
Z
FINANCE DIRECTOR
JONATHAN MCKINNEY
Q
Mailing Address
Physical Address
N
104 NORTH RIVERSIDE DR
City, State, Zip
Phone Number
Fax Number
EDGEWATER, FL 32132
3864242400
INSTRUCTIONS
Property appraisers must complete and sign Section I of this form with the DR -420, Certification of Taxable Value,
and DR -420S, Certification of School Taxable Value, and provide it to all taxing authorities levying a
- Voted debt service millage levied under Section 12, Article VII of the State Constitution or
- Millage voted for two years or less under s. 9(b), Article VII of the State Constitution
Section I: Property Appraiser
Use a separate DR- 420DEBT for each voted debt service millage
that's levied by a taxing authority. The property appraiser should
check the Yes box on Line 9 of DR -420, Certification of Taxable
Value, or Line 8 of DR -420S, Certification of School Taxable Value.
The property appraiser should provide the levy description and
complete Section I, Lines 1 through 4 of this form, for each voted
debt service millage levied.
Enter only taxable values that apply to the voted debt service millage
indicated.
Sign, date, and forward the form to the taxing authority with the
DR -420.
Section II: Taxing Authority
Each taxing authority levying a voted debt service millage
requiring this form must provide the proposed voted debt millage
rate on Line 5.
If a DR- 420DEBT wasn't received for any
- Voted debt service millages or
- Millages voted for two years or less
contact the property appraiser as soon as possible and request
a DR- 420DEBT.
Sign, date, and return the form to your property appraiser
with the DR -420 or DR -420S.
All forms for taxing authorities are available on our website at
h_ttp: / /d my fiqr dda.c_om /dor /property /trimmax.htmi
AGENDA REQUEST
Date: July 12, 2010
PUBLIC
HEARING RESOLUTION ORDINANCE
OTHER
BOARD APPOINTMENT CONSENT BUSINESS X
ITEM DESCRIPTION:
Change Order for Hawks Park Amphitheater Roof
BACKGROUND:
Billco Construction, Inc. was awarded the Bid for the Hawks Park Amphitheater Roof for the
sum of $79,100.00. Staff has requested a design change to the bid design, requiring a change
order for an additional amount of $24,465.00 to construct the roof. The new design will allow the
roof structure to be adjustable in height, easier to maintain and with a removable roof cover.
Total cost of the project will be $103,565. This project is being funded with Recreational Impact
Fees, matched with ECHO Grant Funds. The additional funding will come from Recreational
Impact Fees and ECHO Grant Funds.
STAFF RECOMMENDATION:
Staff recommends City Council approve the Change Order for $24,465.00 to Billco Construction
Inc.
ACTION REQUESTED:
Motion to approve Change Order No. 1 for $24,465.00 to Billco Construction Inc. and authorize
the City Manager to execute Change Order No. 1 and make appropriate budget amendments.
FINANCIAL IMPACT: (FINANCE DIRECTOR) A-1Z
(SPECIFY IF BUDGET AMENDMENT IS REQUIRED) YES
PREVIOUS AGENDA ITEM: YES NO X
DATE: AGENDA ITEM NO.
Respectfully submitted,
Jack'Corder Tracey arlow
Denartment Director City pager
CITY OF EDGEWATER
CHANGE ORDER FORM
Project: City of Edgewater
Amphitheater Roof
Design
CHANGE ORDER NO. 1
DATED: July 12, 2010
CONTRACTOR: Billco Construction, Inc.
OWNER: City of Edgewater Project Manager: Jack Corder
The following changes are hereby made to agreement for construction of amphitheater roof
Original Contract Price: $ 79,100.00
Net Addition Resulting
from this Change Order
The current Contract Price
including this Change Order
$ 24,465.00
$ 103,565.00
1) JUSTIFICATION
The City required a design change to the agreement with Billco Construction, Inc. for
construction of amphitheater roof.
2) PAYMENT
Compensation listed in Change Order No. 1 shall be amended in the amount as listed
below:
1)
2)
Agreement
Change Order #1
$79,100.00
TOTAL:
TOTAL ADDITION:
24,465.00
$103,565.00
$ 24,465.00
(Change Order #I /Billeo)
ACKNOWLEDGMENTS:
The aforementioned change, and work affected thereby, is subject to all provisions of the
original contract not specifically changed by this Change Order; and,
It is expressly understood and agreed that the approval of the Change Order shall have no
effect on the original contract other than matters expressly provided herein.
Change Order Requested by:
Change(s) Ordered by:
Jack Corder. Director of Leisure Services
Jack Corder. Director of Leisure Services
APPROVED BY:
CITY OF EDGEWATER
BILLCO CONSTRUCTION, INC.
Tracey Barlow
City Manager
Dated:
Rick Lennis
Vice President
Dated:
(Change Order 4 1Billco)
i
(1\\ ,\P
Chairman Frank Bruno
This memorandum is intended to validate that the City of Edgewater City Council has confirmed
our continuing interest in being provided the ability to provide contingency emergency medical
transport services. The initiative was discussed again at our regularly scheduled City Council
meeting and it was by decision to continue such pursuit. This letter is formal recognition
confirming our position.
As outlined in the attached letter and accompanying draft application that was submitted to Mr.
Wolcott of the Volusia County Emergency Medical Services Division on and
subsequently denied on , it remains our desire to be considered, at a minimum, for the
provision of contingency transport services. As outlined in our initial request, we envision
contingency transport for situations when a patient's condition requires immediate transport to the
closest appropriate receiving facility or during periods when the County contracted transport service
is unable to provide transport services within a time most beneficial to the treatment of the patient.
It is our fervent intent to reduce any cause for delayed transport of a critically ill or injured patient as
such as was experienced on January 8, 2010 in our city.
It is also our request that any modification and subsequent issuance of any applicable regulating
Certificate of Public Convenience and Necessity (COPCN) applications/certifications be modified
only at the direction of the County Council. We also request you to consider issuance of the
COPCN for contingency transport to be issued by the County of Volusia versus subletting
authorization and/or regulation through the contracted patient transport service provider. The City
of Edgewater City Council desires to work cooperatively with Volusia County Council in an effort
to enhance the efficiencies and level of Emergency Medical Services provided in southeast Volusia
County. We are confident that our existing resources, to include the Regional Communication
Center (RCC), can provide such services and efficiencies to expedite the transport of those patients
with emergent needs.
l^/ r
3
i 4„y 4 �� L.� ? VT
;T A� :. S � F a.
City of
E WATER
Inc.1951
MEMO TO: The Honorable Mayor and City Commission
THRU: Tracey T. Barlow, City Manager - '
, M CH
FROM: Jonathan C. McKinney, Finance Director - I r.,
DATE: July 12, 2010
SUBJECT: Remediation Response for Fiscal Year Ended September 30, 2009
Below are the individual audit comments with management's remediation plan for each item with
expected completion times.
2009-01 Reconciliation of Balance Sheet Accounts—CAFR page 105
Management's Response: Finance
The City received the same comment for FY2008. The City engaged our prior auditor to work out a plan.
This plan was not finalized until November 2009. This finalization did not afford us the time to implement
and make all necessary changes to FY2009 in time for the FY2009 audit. We fully intend to have all
accounts reconciled prior to field work for the FY2010 audit.
Time to complete: January 2011
2009-02 Prior and Current Period Adjustments to Revenue—CAFR page 106
Management's Response: Finance
Traditionally, the City has utilized a twelve month posting per Fiscal year of all major revenues and
expenditures for many years. With the switch in Auditors, they are encouraging that staff adhere to all City
policies and procedures and generally accepted accounting principles when posting revenues and
expenditures at year end.
This was an area that had not yet been addressed in my tenure as Finance Director.
Time to complete: September 2010
2009-03 Journal Entry Process—CAFR page 106
Management's Response: Finance
The City is currently reviewing and rewriting all policy and procedures as it relates to Finance. In
particular we will standardize the approval process prior to entries being updated. We have already
implemented a tracking mechanism for the approval process prior to posting. Furthermore, staff has
addressed the documentation required with all entries.
Department of Finance
P.O. Box 100•Edgewater,FL 32132-0100
(386) 424-2400 Ext. 1300 •Fax(386)424-2409
www.cityofedgewater.org
Time to complete: January 2011
2009-04 Tracking of Restricted Resources—CAFR page 106
Management's Response: Finance
All projects in question were approved by Council as part of the budgetary process. The Finance
Department utilizes separate funds to track all revenues for grants and impact fees. The proper tracking
mechanisms are in place. Funds were transferred prior to the completion of projects authorized by
Council. Finance staff has been instructed to the purpose of the restricted funds and transfers should
only be made once a project is completed or any funds expended.
In addition the Auditor has recommended that staff update the ordinances written in 1975 that specifically
address that impact fees are authorized to be used for debt payments.
Time to complete: May 2010
2009-05 Cash Disbursement Controls—CAFR page 107
Management's Response: Finance
The City is currently reviewing and rewriting all policy and procedures as it relates to cash disbursements.
The practice has been that the Finance Department coded invoices to the ledgers. The practice has
been stopped. Departments are responsible for the coding of all invoices that they have signed off on.
The lost documentation was an isolated event and not a representation of the organization of the Finance
Department. However, controls have been put in place limiting access to the information by the finance
clerk II only. All other individuals seeking copies, review etc, must go thru the finance clerk II.
Time to complete: September 2010
2009-06 Recording of Unusual/Infrequent Transactions—CAFR page 107
Management's Response: Finance
The City utilizes many different sources when unusual / infrequent transactions take place. All infrequent
or unusual transactions must be brought to the attention of the Finance Director. I will consult with auditor
if required.
Time to complete: Ongoing
2009-07 Centralization of Grants—CAFR page 107
Management's Response: Finance
The City agrees and has contracted with Quentin Hampton to monitor compliance with all major and
Federally funded grants received for FY2010. The individual departments along with Finance are also
continually reviewed monthly and quarterly as required to ensure compliance is maintained.
Time to complete: Ongoing
2009-08 Excess Expenditures over Appropriations —CAFR page 109
Management's Response: Finance
Department of Finance
P.O.Box 100 • Edgewater,FL 32132-0100
(386)424-2400 Ext. 1300• Fax(386)424-2409
www.cityofedgewater.org
This comment goes along with comment 2009-04. Subsequent to the 60 day window allowed by Florida
Statutes transfers, which were approved by the City Council and / or within purchasing policy guidelines,
were reversed that created the excess expenditure over appropriations. The Final Year End
amendments were completed November 16, 2010 as allowed by Florida Statutes. The Finance
Department will allow for such yearend adjustments in the future to account for any year end entries that
might be made or proposed.
Time to complete: November 2010
2009-09 Deficit Fund Equity—CAFR page 109
Management's Response: Finance
Staff acknowledges weakness & a procedure should be written to address how fund balances should be
addressed. Final entries to remedy the deficit fund equity should have been completed. This would have
involved an additional transfer from the General fund for MIS and Animal Services which was already
budgeted. For LLEBG this would have been an adjustment of expenditures with the Police Department's
budget in General fund as well. More oversight by the Finance Director will ensure this will not occur
again.
Time to complete: September 2010
2009-10 Check Number Differences—CAFR page 110
Management's Response: Finance
This was an isolated incident due to a software conversion. With the switch to H.T.E. ASP in August
2008, the City lost the ability to print checks. For over six months staff typed checks issued to Vendors
and employees. The City secured the Mind Gate software Print Chef in late 2008. MindGate
encountered numerous issues in implementing a solution due to the many irregularities between payroll
and accounts payable within H.T.E. Both MindGate and H.T.E. were a part of this implementation. The
only problem encountered was with our Accounts Payable checks. The issue involved remittance length
and checks over$100,000. We had six check runs affected with a check count of 466 from March 31 —
June 11, 2009. From day one a cross reference was created to log the H.T.E. check reference to
MindGate reference. We installed numerous batches to correct. Our former external auditors were onsite
and they were involved to make sure we were keeping the proper files for bank reconciliation to H.T.E.
outstanding check reconciliation. As Finance Director I authorized this switch as I felt more errors were
possible from manually typing checks versus check number out of sequence. We had more control with
the later. MindGate was very responsive in revising the software to accommodate the check dollar value.
H.T.E. assisted us to switching to a summary description versus detail account description for our
vendors. At no time did the City not know that there was a problem with the check numbers. All steps
were taken to remedy the situation.
Time to complete: June 2009
2009-11 Accounting Policies and Procedures—CAFR page 110
Management's Response: Finance
The City is currently reviewing and rewriting all policy and procedures as it relates to Finance. Policies
are being written and shared with the Auditor to cover the following:
• Financial Reporting
• Accounting Operations
• Grants Management
• Treasury
Department of Finance
P.O. Box 100•Edgewater, FL 32132-0100
(386) 424-2400 Ext. 1300•Fax(386)424-2409
www.cityofedgewater.org
• • Risk Management
• Management and Budget
• Purchasing and Materials management
• Information Technology
The above topics are meant to cover the Finance Departments major areas of responsibility as it relates
to the City Charter, Ordinances, Resolutions and other policies and procedures approved by Council.
Time to complete: January 2011
2009-12 Cash Receipts—CAFR page 111
Management's Response: Finance
Staff acknowledges weakness & a procedure has been implemented to address. H.T.E. cannot limit
access to individual's batches for editing. However, we can monitor zero dollar transactions. Therefore, if
an individual makes a change to a transaction they must complete a form and have a finance clerk II or
accounting technician review the transaction. Also, at the end of the day the person responsible for the
daily closeout is reviewing all zero dollar transactions to make sure they were handled correctly.
Time to complete: January 2011
2009-13 Permitting Process—CAFR page 111
Management's Response: Community Development
Staff acknowledges weakness & a procedure has been implemented to correct. When a customer is
referred to City Hall to pay for his permit, he will be given an invoice to take with him which will be
stamped paid by the cashier who is processing the payment. He will return this to the Building
Department as proof of payment. This invoice will then be attached to the actual permit and filed with the
permit application and supporting documents.
Time to complete: January 2011
2009-14 Information Technology —CAFR page 111
Management's Response: MIS
Documentation of the City of Edgewater's Information technology procedures is an ongoing event. We
currently have Network diagrams and IP topography on our web server utilizing Google Maps. We are
researching ways to meet today's demands dynamically without undue use of paper.
The City's enterprise program H.T.E. Naviline which includes all financial programs, is currently an
internet cloud based, on demand program that meets or exceeds all PCI compliance standards for
password and securities protection. Our data is backed up nightly in Atlanta, Ga. and then copied to Lake
Mary Fl. thus achieving double redundancy.
The IT department at the start of fiscal year 2010 purchased a host virtual machine and has been moving
server applications to it. Industry standards dictate that many server applications such as Exchange
server and domain controllers not be virtualized and we adhere to that standard.
Time to complete: January 2011
2009-15 Interest Earnings Allocation—CAFR page 111
Department of Finance
P.O. Box 100•Edgewater,FL 32132-0100
(386) 424-2400 Ext. 1300 •Fax(386)424-2409
www.cityofedgewater.org
Management's Response: Finance
The City is in the process of implementing Interest Earning Allocation within H.T.E. H.T.E. will allocate
monthly interest based on total monthly fund cash balances. Currently the City of Ormond Beach is
utilizing H.T.E. and has already addressed this issue. We have requested their assistance in helping to
resolve. When implemented, H.T.E. will create all necessary postings for staff.
Time to complete: September 2010.
2009-16 Errors in Documentation Supporting Special Assessments—CAFR page 111
Management's Response: Finance
The City going forward will work with the County to ensure the accuracy of all documentation regarding
the special assessments. The County and the City are currently in balance and all changes within the
database are being logged and reconciled quarterly.
Time to complete: January 2011
2009-17 Calculation of Charges for Services— CAFR page 111
Management's Response: Finance
Currently all fee changes made to utilities maintenance are performed by a finance clerk II. These
changes were not verified by anyone else within the finance department.
Effective immediately, all fee changes made to utilities maintenance will be the primary responsibility of
the finance clerk II and be reviewed by the finance director to ensure accurate input of information into the
system. In the event the finance director makes a change, the finance clerk II will review.
Time to complete: January 2011
2009-18 Review of Personnel Changes—CAFR page 112
Management's Response: Personnel
Currently all personnel changes made through employee maintenance are performed by either the
personnel director or the personnel administrator. These changes are verified by the finance department
during the payroll processing steps.
Effective immediately, all personnel changes made through employee maintenance will be the primary
responsibility of the personnel administrator and reviewed by the personnel director to ensure accurate
input of information into the system. In the event the personnel director makes a change, the personnel
administrator will review.
Time to complete: June 2010
2009-19 Employee Reimbursements—CAFR page 112
Management's Response: Finance
The City is currently reviewing and rewriting all policy and procedures as it relates to Finance. A policy is
being written to address employee reimbursements and will be incorporated as part of the roll out of the
Works Program with the Bank of America Purchasing Card as these are both interrelated.
Department of Finance
P.O. Box 100 •Edgewater,FL 32132-0100
(386)424-2400 Ext. 1300 •Fax(386) 424-2409
www.cityofedgewater.org
Yime to complete: August 2010.
2009-20 Access to Information System—CAFR page 112
Management's Response: MIS
The IT department will establish a policy of continually reviewing Naviline (H.T.E.) access. The policy will
require the City Manager to approve various access levels based on employees responsibilities.
Time to complete: September 2010
2009-21 New Accounting Pronouncements (GASB No. 54)—CAFR page 112
Management's Response: Finance
The City will be revising the fund balance classification to be more consistent and to clarify the existing
fund balance presentation within the CAFR. This is not required until the presentation of the FY2011
CAFR.
Time to complete: September 2011
Department of Finance
P.O. Box 100• Edgewater, FL 32132-0100
(386)424-2400 Ext. 1300•Fax(386)424-2409
www.cityofedgewater.org
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