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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. 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