FY 2014 CAFR CITY OF EDGEWATER., FLORIDA
COMPREHENSIVE A FINANCIAL 1
Fiscal Yearjndea",L'eptember,3
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended September 30, 2014
Prepared by: The Finance Department
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TABLE OF CONTENTS
Paqe
Introductory Section
Letter of Transmittal I I I
GFOA Certificate of Achievement VI
List of Principal Officials VII
Organizational Chart VIII
Financial Section
Independent Auditor's Report 1
Management's Discussion and Analysis 3
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position 15
Statement of Activities 16
Fund Financial Statements:
Balance Sheet-Governmental Funds 18
Reconciliation of the Balance Sheet of Government Funds to the Statement of
Net Position 19
Statement of Revenues, Expenditures and Changes in
Fund Balances -Governmental Funds 20
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of
Activities 21
Statement of Revenues, Expenditures and Changes in Fund
Balances- Budget and Actual-General Fund 22
Statement of Net Position -Proprietary Funds 23
Statement of Revenues, Expenses and Changes in
Fund Net Position- Proprietary Funds 24
Statement of Cash Flows-Proprietary Funds 25
Statement of Fiduciary Net Position -Fiduciary Funds 26
Statement of Changes in Fiduciary Net Position—Pension Trust Funds 27
Notes to Financial Statements 29
Required Supplementary Information (Unaudited) 60
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds—Fund Descriptions 63
Combining Balance Sheet-Nonmajor Governmental Funds 64
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Nonmajor Governmental Funds 66
Schedule of Revenues, Expenditures and Changes in Fund
Balances- Budget and Actual—Nonmajor Special Revenue Funds 68
Schedule of Revenues, Expenditures and Changes in Fund
Balances- Budget and Actual—Nonmajor Debt Service Funds 72
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual—Major Capital Projects Funds 73
Internal Service Funds—Fund Descriptions 75
Combining Statement of Net Position 76
Combining Statement of Revenues, Expenses, and Changes in Fund
Net Position—Internal Service Funds 77
Combining Statement of Cash Flows—Internal Service Funds 78
I
Paqe
Financial Section -Continued
Other Supplemental Scheduled— Fiduciary Funds—Fund Descriptions 79
Combining Statement of Fiduciary Net Position—Pension Trust Funds 80
Combining Statement of Changes in Fiduciary Net Position—Pension
Trust Funds 81
Statistical Section (Unaudited)
Table of Contents 83
Financial Trends
Net Position by Component 84
Changes in Net Position 85
Fund Balances of Governmental Funds 87
Changes in Fund Balances of Governmental Funds 88
Revenue Capacity:
Tax Revenues by Source of Governmental Funds 89
Assessed Value and Actual Value of Taxable Property 90
Property Tax Rates - Direct and Overlapping Governments 91
Principal Taxpayers 92
Property Tax Levies and Collections 93
Debt Capacity:
Ratios of Outstanding Debt by Type 94
Ratios of General Obligation Bonded Debt Outstanding 96
Direct and Overlapping Debt 97
Legal Debt Margin Information 98
Pledged-Revenue Coverage 99
Demographic and Economic Information:
Demographic and Economic Statistics 100
Principal Employers 101
Operating Information
Full-time Equivalent City Government Employees by Function/Program 102
Operating Indicator by Function/Program 103
Capital Asset Statistics by Function/Program 104
Other Reports:
Schedule of State Financial Assistance 105
Schedule of Findings and Questioned Costs - State Projects 106
Independent Auditors' Report on Compliance For Each Major State Project and
Report on Internal Control Over Compliance in Accordance With Chapter
10.550,Rules of the Auditor General 108
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed In Accordance with Government Auditing Standards 110
Independent Auditors' Management Letter 112
Independent Accountants' Examination Report 114
Reply to the Independent Auditor's Report 115
Affidavit of Impact Fee Compliance 116
II
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City of
,EDGEWATEI?
March 31, 2014
To the Honorable Mayor, and Members of the City Council, and Citizens of the City of Edgewater
City Charter and State law requires that all general-purpose local governments publish a complete set of
financial statements presented in conformity with the generally accepted accounting principles in the
United States of America (GAAP) and that they be audited in accordance with generally accepted
auditing standards in the United States of America by a firm of licensed certified public accountants.
Pursuant to the requirement, it is with great pleasure that we present to the City of Edgewater, the
Comprehensive Annual Financial Report (CAFR)for the fiscal year ended September 30th, 2014.
This report consists of management's representations concerning the finances of the City of Edgewater.
Consequently, management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City of Edgewater has established a comprehensive internal control framework that is
designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of the City of Edgewater's financial statements in conformity with
GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Edgewater's
comprehensive framework of internal controls has been designed to provide reasonable rather than
absolute assurance that the financial statements will be free from material misstatements. As
management, we assert that, to the best of our knowledge and belief, this financial report is complete and
reliable in all material respects.
James Moore & Co., P.L. a firm of licensed certified public accountants, has issued an unmodified
("clean") opinion on the City of Edgewater's financial statements for the fiscal year ended September 30,
2014. The independent auditor's report is located at the front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter
of transmittal is designated to complement the MD&A and should be read in conjunction with it.
Profile of the Government
The City of Edgewater was incorporated in 1952 and has operated under the Council-Manager form of
government since 1981. Primary responsibilities of the City Manager are to implement the policies of the
elected officials. The City Manager assumes responsibilities of the day-to-day operations of the City,
annual budget preparation, appointing/removing officers and employees. In addition to supervising the
daily operations, the City Manager works with elected officials, committees and citizens to plan for the
future of the community.
The City of Edgewater is located in southeast Volusia County, primarily east of I-95 south of New Smyrna
Beach, two miles west of the Atlantic Ocean and runs along 10.5 miles of the Indian River coastline. The
City is within the economic zone of Central Florida, which roughly follows Interstate 4 from Tampa through
Orlando to Daytona Beach and the communities along the Atlantic Coast in Volusia County. There are
14,362 acres of land within the City with an estimated population of 20,748.
III
The City of Edgewater offers a full range of services to its citizens through multiple funds. The City uses
funds to separate resources and assure that the City adheres to restrictions placed upon it by legislators,
grantors, donors, and other outside parties (e.g. GASB, GAAP). The following is a list of services
provided by each fund:
• General Fund - provides planning and zoning, economic development, building (e.g. permits,
inspections, etc), police, fire, fire rescue, animal control, parks, recreation, streets (new and
maintained), code enforcement, and general administrative services.
• Water and Sewer Fund - provides water and sewer services.
• Refuse Fund - uses a combination of City personnel and assets along with private contracted
companies to provide solid waste collection.
• Stormwater Fund — provides and ensures proper water drainage from all properties.
• Internal Service Funds — account for fleet management services, management information
systems, general liability insurance, health insurance, and workers compensation insurance.
Whenever possible the City seeks alternative sources of revenue to provide services, enhance services,
and supplement the existing expenses in the budget. The most prominent example of alternative revenue
is grants through the federal, state, and local levels.
Local economy
Long established businesses such as Boston Whaler, Edgewater Power Boats, R.J. Dougherty Associates,
Inc, Porta Products, Tropical Blossom Honey, Lane Construction, as well as new businesses provide
employment opportunities within the City. NASA and related supporting enterprises at Cape Canaveral as
well as the cruise industry located at Port Canaveral provide further employment opportunities.
The City of Edgewater currently has a 5.9 percent unemployment rate (in line with the state average of
6.1 percent). During the last year, taxable assessment values of property in Edgewater increased 3.85
percent. The City continues exploring several options to increase economic growth within the City and
improve economic development within southeast Volusia County. The City's Economic Development
Board is continuing its emphasis on result-oriented initiatives as well as the City is working with the
County in creating a Community Revelopment Agency to encourage redevelopment along our US. 1 and
Park Ave. corridor. The City continues to develop many partnerships between various economic
development agencies and local businesses.
The City of Edgewater's outlook for fiscal year 2015 is for modest gains in economic growth as the recovery
and expansion from the financial crisis and national and international recessions gain a small degree of
traction in the local economy. With the modest gains, the City of Edgewater continues to apply for Federal
and State and did receive State Revolving Funds for the renewal and replacement of an aging Waste Water
Treatment plant as well as Department of Transportation funds for sidewalks along our major corridor US. 1.
The Waste Water Treatment Plant R&R was completed in FY2014 with the Sidewalks to be completed in
FY2015. Without these funds, this project would not have been completed within the foreseeable future.
Financial planning and budgeting
The City continued to stress expenditure control in preparing the FY2015 General Fund budget. The City ad
valorem millage rate for FY2014 was 6.876, which was 9.98% more than the rolled-back rate. The millage
rate increased from the prior year rate of 6.50, resulting in property tax collections increase of 9.48% due to
an increase in property assessments an annexation.
The City adopts a five-year capital improvement plan that identifies future funding needs to maintain,
repair and upgrade capital assets and infrastructure including road resurfacing, water line upgrades and
vehicle and technology replacement programs within the funding constraints. It should be noted;
however, that the CIP is not a fixed document but a flexible, evolutionary document that may change to
reflect changing priorities, opportunities, costs, or different financing approaches.
IV
Relevant financial policies
The City Council recognizes the need to meet seasonal shortfalls in cash flows, its susceptibility to
emergency or unanticipated expenditures or the possibility of revenue shortfalls during any fiscal year. To
address these issues, the City Council included in its Charter a requirement to maintain reserves at a
minimum of 15 percent to a maximum of 25 percent of the general fund appropriations (excluding operating
transfers). The unassigned fund balance at September 30, 2014 was 23.29% which is within the range of
15-25% per the charter. For Fiscal Year 2014 operating budget cuts were necessary in many areas to offset
increasing operating cost while still maintaining our five year salary step plan.
Budgeting Controls
The annual budget serves as the foundation for the City of Edgewater's financial planning and control. All
departments of the City of Edgewater are required to submit requests for appropriation to the City
Manager. The City Manager then uses these requests as the starting point for developing a proposed
budget. The City Manager then presents this proposed budget to the City Council for review. The City
Council is required to hold public hearings on the proposed budget and to adopt a final budget by no later
than September 30, the close of the City of Edgewater's fiscal year. The appropriated budget is prepared
by fund (i.e., General Fund), department (i.e., Fire Department) and division (i.e., Fire Operations). The
City Manager may make transfers of appropriations within and between divisions and departments;
however, any revisions that alter the total appropriations of any funds must be approved by City Council.
Original and final amended budget-to-actual comparisons are provided in this report for each individual
governmental fund.
Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Edgewater for its
comprehensive annual financial report for the fiscal year ended September 30, 2013. This was the thirtieth
consecutive year that the City of Edgewater has achieved this prestigious award. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report 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 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 of another certificate.
Acknowledgements
The preparation of this report would not have been possible without the efficient and dedicated
commitment of the entire Finance Department. The City departments, although not extensively involved
in year-end audit activities, contributed significantly by ensuring the accuracy and integrity of the
accounting information and statistics compiled throughout the year. Without their diligence, the work of
the Finance Department would have been considerably more difficult. Appreciation must also be
expressed to the City's external auditor whose suggestions and attention to detail enhanced the quality of
this report.
In closing, special thanks to the Mayor and City Council for their support and commitment to maintaining
the financial integrity and sustainability of the City.
Respectfully submitted,
Tracey T. Barlow Jonathan C. McKinney
City Manager Finance Director
V
Government Finance Officers Association
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, 2013
*/�O, A
Executive Director/CEO
VI
CITY OF EDGEWATER FLORIDA
List of Elected and Appointed Officials
September 30, 2014
CITY COUNCIL
Michael L. Thomas, Mayor
Christine Power, Michael Ignasiak,
District 1 District 3
Gigi Bennington, Gene Emter,
District 2 District 4
ADMINISTRATION
CITY MANAGER FINANCE DIRECTOR
Tracey T. Barlow Jonathan McKinney
CITY ATTORNEY FIRE CHIEF
Aaron R. Wolfe Stephen Cousins
CITY CLERK POLICE CHIEF
Bonnie Wenzel David J. Arcieri
PERSONNEL DEVELOPMENT SERVICES
DIRECTOR DIRECTOR
Donna Looney Darren Lear
ENVIRONMENTAL SERVICES LEISURE SERVICES
DIRECTOR DIRECTOR
Brenda Dewees Jack Corder
VII
CITY OF EDGEWATER FLORIDA
City Organization Chart
September 30, 2014
Citizens of Edgewater
Mayor and City Council
]7 1
City Attorney City Manager Ld ,,.ry Boards City Clerk
Community Environmental Support
tRecreation Services Development Services Public Safety Services
Building Utilities I Public Works Fire/Rescue Finance Personnel
Code Economic
aintenance Planning Water Stormwater Enforcement Development
JWastewater Refuse F Animal Control Special Events
Field Information I J�Operations Street Animal Shelter Technology
Wastewater � Fleet Police
Collections
VIII
j m s Moore
,d I ubVic Aceoiti.i._.us and Consultants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor, City Council, and City Manager
City of Edgewater, Florida:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type
activities, each major fund, and the aggregate remaining fund information of the City of Edgewater,
Florida(the City), as of and for the year ended September 30, 2014, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors'Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City as of September 30, 2014, and the respective
changes in financial position and, where applicable, cash flows thereof and the respective budgetary
comparison for the general fund for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
121 Executive Circle 5931 NW 1st Place 2477 Tim Gamble Place,Suite 200
Daytona Beach,FL 32114-1180 Gainesville, FL 32607-2063 Tallahassee,FL 32308-4386
Telephone:3861257-4100 Telephone:352/378-1331 Telephone:850/386-6184
Fax:386/255-3261 Fax:3521372-3741 Fax:850/422-2074
dab @jmco.com gnv @jmco.com tlh @jmco.com
Member ofAGN International with offices in principal cities worldwide
1
Other Matters
Change in Accounting Principle
As discussed in Note V(H) to the financial statements, in 2014, the entity adopted Governmental
Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported As Assets and
Liabilities, and GASB Statement No. 67, Financial Reporting for Pension Plans. See Note V(H) for the
effect of GASB 65 on beginning net position. Our opinion is not modified with respect to this matter.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and other required supplementary information, as listed in the table of contents,
be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements, budgetary comparison schedules, statistical section, and the schedule
of state financial assistance, as required by Section 215.97, Florida Statutes, are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements, budgetary comparison schedules, and
the schedule of state financial assistance are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. hl our opinion, the
information is fairly stated in all material respects in relation to the financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 23,
2015, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control over financial
reporting and compliance.
t
Daytona Beach,Florida f
March 23, 2015
2
Management's Discussion and Analysis
As management of the City of Edgewater, Florida we offer readers of the City of Edgewater's
financial statements this narrative overview and analysis of the financial activities of the City of
Edgewater for the fiscal year ended September 30, 2014. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished in our
letter of transmittal.
Financial Highlights
• Net Position -The assets of the City exceeded its liabilities at the close of FY 2013-14 by
$80,562,682, which represents a decrease in net assets of $2,527,280 or 3.04% from
the prior fiscal year.
• The City's governmental funds reported combined ending fund balance of $4,845,460,
an increase of$925,423 from the prior fiscal year.
• At the end of FY 2013-14, the General Fund unassigned fund balance was $2,770,632
or 23.08% of the budgeted FY 2015 General Fund expenditures, excluding transfers.
This represents an increase of$26,024 from the prior fiscal year.
• During the fiscal year, the City's total debt increased by $1,123,469. Governmental debt
increased by $116,908 and business-type debt reflected an increase of$1,006,561.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Edgewater's
(the City) basic financial statements. The City's basic financial statements comprise three
components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This report also contains other supplementary information in addition to
the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the City of Edgewater's finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the government's net position
changed during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
3
Both of the government-wide financial statements distinguish functions of the City of Edgewater
that are principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs through
user fees and charges (business-type activities). The governmental activities of the City of
Edgewater include general government, public safety, transportation/public works and leisure
services. The business-type activities of the City of Edgewater include water and sewer, refuse
collection and stormwater management.
The government-wide financial statements include only the City of Edgewater itself (known as the
primary government). The City of Edgewater has no component units.
The government-wide financial statements can be found on pages 15-17 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City of Edgewater, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. All of the funds of the City of Edgewater can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental Funds - Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial statements
focus on near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City of Edgewater maintains nine individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the general fund, and the capital
projects fund, both of which are considered to be major funds. Data from the other eight
governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of these non-major governmental funds is provided in the form of combining statements
elsewhere in this report.
The City of Edgewater adopts an annual appropriated budget for all of its governmental funds.
Budgetary comparison statements have been provided for the general fund to demonstrate
compliance with this budget at page 22. Budgetary comparison schedules have been provided for
the non-major, debt service and capital projects funds at pages 68-73.
The basic governmental fund financial statements can be found on pages 18-22 of this report.
4
Proprietary Funds - The City of Edgewater maintains one type of proprietary fund. Enterprise
funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City of Edgewater uses enterprise funds to account for
water and sewer, refuse collection and stormwater management.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for water and sewer, refuse collection and stormwater management which are all
considered to be major funds.
The basic proprietary fund financial statements can be found on pages 23-25 of this report.
Internal Services Funds — Internal Service funds are used to account for the financing of
centralized services to the City departments on a cost-reimbursement basis.
The basic internal services fund financial statements can be found on pages 75-78 of this report.
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City of
Edgewater's own programs. The accounting used for fiduciary funds is much like that used for the
proprietary funds.
The basic fiduciary fund financial statements can be found on pages 79-81 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to financial statements
can be found on pages 29-59 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the City's progress in its obligation to
provide pension benefits to its employees. The combining statements referred to earlier in
connection with non-major governmental funds are presented immediately following the Notes to
Financial Statements. Combining and individual fund statements and schedules can be found on
pages 63-67 of this report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City of Edgewater, assets exceeded liabilities by $80,562,682 at the
close of the most recent fiscal year. The following table reflects the condensed statement of net
position for the current and prior years. For more detail see the Statement of Net Position on page
15.
5
City of Edgewater's Statement of Net Position (in whole dollars)
Governmental Activities Business-Type Activities Total Primary Government
Assets: 2014 2013 2014 2013 2014 2013
Current and other assets $6,237,617 $5,178,148 $10,934,724 $10,627,203 $17,172,341 $15,805,351
Capital Assets 42,267,444 44,948,205 51,461,167 52,601,859 93,728,611 97,550,064
Total Assets 48,505,061 50,126,353 62,395,891 63,229,062 110,900,952 113,355,415
Liabilities:
Long term liabilities 3,788,164 3,625,438 24,431,577 23,340,342 28,219,741 26,965,780
Other liabilities 817,083 710,725 1,392,443 2,588,948 2,209,526 3,299,673
Total Liabilities 4,605,247 4,336,163 25,824,020 25,929,290 30,429,267 30,265,453
Net Position:
Net investment in capital assets 40,480,601 43,278,270 27,962,252 30,199,966 68,442,853 73,478,236
Restricted 1,255,664 1,000,424 1,694,339 1,860,458 2,950,003 2,860,882
Unrestricted 2,163,549 1,511,496 7,006,277 5,239,348 9,169,826 6,750,844
Total Net Position $43,899,814 $45,790,190 $36,662,868 $37,299,772 $80,562,682 $83,089,962
At the end of the current fiscal year, the government's liabilities increased by $163,814 which is
mainly attributed to the increase of long term debt in business-type activities of$1,006,561, and a
decrease of payables in business-type activities of $1,141,391 from the completion of the
wastewater treatment plant refurbishment. Other liabilities increased by $89,181 which is attributed
to increases in OPEB and compensated absence liabilities of the City.
Eighty-five percent (85%) of the City's net position reflect its investment in capital assets (e.g., land,
buildings, improvements, infrastructure and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City of Edgewater's
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the City of Edgewater's net position (4%) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted
net position $9,169,826 may be used to meet the government's ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City of Edgewater is able to report positive balances in all
categories of net position, both for the government as a whole, as well as for its separate
governmental and business-type activities.
The government's net position decreased by $2,527,280 in the current fiscal year. The
government's restricted net position increased by $89,121 in the current fiscal year. This was
mainly attributed to increases in net position being restricted for use in debt service of$66,400 for
business-type activities. Further explanations of the increase are detailed below. The following
table reflects the condensed Statement of Activities for the current and prior years. For more detail
see the Statement of Activities on page 16-17.
6
Statement of Activities
Governmental Activities - Governmental activities decreased the City of Edgewater's net position
by $1,890,376 which is less than the previous year's decrease by $1,810,691. Key elements of
this reduction are as follows:
• Property taxes increased by$356,804 due to increased assessed values, and
intergovernmental revenues increased $215,833 due mainly to increased sales tax
collections.
• Expenses decreased by$205,184 in Public Works and by$326,350 in Public Safety.
• Transfers increased $567,081 from transfers from the Enterprise Funds to the General
Fund for payments in lieu of franchise fees.
Business-Type Activities - Business-type activities decreased the City of Edgewater's net position
by $546,443. Key elements of this decrease are as follows:
• Water and Sewer Fund expenses increased $373,044 due to increased employer
contributions for members of the General Employee's pension, and increased depreciation
expense from the $7M wastewater treatment plant refurbishment.
• Refuse Fund expenses increased $139,090 due to an increase in the cost allocation to the
General Fund, and increased fleet expenses due to larger trucks now being used.
• Transfers out increased $567,081 (377%) during the year due to transfers from the Water
and Sewer, Refuse, and Stormwater Funds to the General Fund for payments in lieu of
franchise fees.
The remainder of this page intentionally left blank.
City of Edgewater's Changes in Revenues, Expenses and Net Position (in whole dollars)
Governmental Activities Business-Type Activities Total Primary Government
2014 2013 2014 2013 2014 2013
Revenues:
Program revenues-
Charges for services $ 949,596 $ 788,185 $ 12,378,319 $ 12,198,937 $ 13,327,915 $ 12,987,122
Operating grants and contributions 442,201 586,345 - - 442,201 586,345
Capital grants and contributions 333,284 515,775 111,295 83,417 444,579 599,192
General revenues-
Property taxes 4,120,260 3,763,456 - - 4,120,260 3,763,456
Franchise and utility taxes 3,182,716 3,051,649 3,182,716 3,051,649
Intergovernmental 2,030,522 1,814,689 2,030,522 1,814,689
Investment income and miscellaneous 201,203 76,082 105,540 74,861 306,743 150,943
Total revenues 11,259,782 10,596,181 12,595,154 12,357,215 23,854,936 22,953,396
Expenses:
General government 2,060,966 2,098,288 - - 2,060,966 2,098,288
Public safety 6,767,861 7,094,211 6,767,861 7,094,211
Transportation/public works 3,514,532 3,719,716 3,514,532 3,719,716
Leisure services 1,464,164 1,490,505 1,464,164 1,490,505
Interest on long-term debt 60,282 45,094 60,282 45,094
Water and sewer - - 8,459,432 8,086,388 8,459,432 8,086,388
Refuse collection 2,697,843 2,558,753 2,697,843 2,558,753
Stormwater management 1,266,675 1,157,256 1,266,675 1,157,256
Total expenses 13,867,805 14,447,814 12,423,950 11,802,397 26,291,755 26,250,211
Excess(deficiency)before transfers (2,608,023) (3,851,633) 171,204 554,818 (2,436,819) (3,296,815)
Transfers in I(out) 717,647 150,566 (717,647) (150,566)
Increase(Decrease)in net position (1,890,376) (3,701,067) (546,443) 404,252 (2,436,819) (3,296,815)
Net Position-Beginning 45,790,190 49,491,257 37,209,311 36,895,520 82,999,501 86,386,777
Net Position-Ending $ 43,899,814 $ 45,790,190 $ 36,662,868 $ 37,299,772 $ 80,562,682 $ 83,089,962
The remainder of this page intentionally left blank.
8
Expenses and Program Revenues - Governmental Activities
$7,000,000 $6,767,861
$6,000,000
$5,000,000
$4,000,000 $3,514,532
$3,000,000 $2,060,966
$2,000,000 $1,464,164
$882,942
$1,000,000 $632,180
$178,890 $31,069 $60,282 $0
$0 General government Public safety Transportation/public Leisure services Interest on long-term
works debt
❑Expense ■Program Revenues
Revenues by Source — Governmental Activities
Investment Other Taxes
Income & 28%
Miscellaneous
2%
Program
Revenues
15%
Property Taxes
Intergovernmental 37%
18%
❑Property Taxes ■I ntergovernmental
❑Program Revenues ❑Investment Income&Miscellaneous
■Other Taxes
9
Expenses and Program Revenues - Business-Type Activities
$8:459:432 $8.495:101
59,000,000
58,000,000
57,000,000
56,000,000
55,000,000
54,000,000 $2 693 938
53,000,000 $1.266.675
$1:300:575
52,000,000
51 ,000,000
50
Water and Se:-�e Refuse Collection Stromwater wkanagement
[]Expense ■Program Revenues
Revenues by Source - Business-Type Activities
Capital Grants
and Contributions,
1%
Investment _Charges for
Income & Services
Miscellaneous 98%
1%
❑Capital Grants and Contributions
■Charges for Services
❑Investment Income&
Miscellaneous
10
Financial Analysis of the Government's Funds
As noted earlier, the City of Edgewater used fund accounting to ensure and demonstrate
compliance with finance-related requirements.
Governmental Funds - The focus of the City's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Edgewater's financing requirements. In particular, unassigned fund
balance may serve as a useful measure of a government's net resources available for spending
at the end of the fiscal year.
As of the end of the current fiscal year, the City of Edgewater's governmental funds reported
combined ending fund balances of $4,845,460, an increase of $925,423 in comparison with the
prior year. Approximately 57% of this amount or $2,770,632 constitutes unassigned fund
balance, which is available for spending at the City's discretion. The City has assigned fund
balance for the replacement of City Hall in the amount of $600,000, and $150,749 for the
subsequent year's budget appropriation. Restricted fund balance of $901,959 is for
scholarships, public safety, debt service, and capital projects. Nonspendable fund balance of
$422,120 is held for inventories and prepaids.
The General Fund is the chief operating fund of the City of Edgewater. At the end of the current
fiscal year, unassigned fund balance of the General Fund was $2,770,632, while total fund
balance was $3,946,491. As a measure of the General Fund's liquidity, it may be useful to
compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents 23% of the total General Fund expenditures, while total
fund balance represents 33% of that same amount.
During the current fiscal year, the fund balance of the General Fund increased by $675,685.
This increase was attributed to increased ad valorem revenues and utility and franchise tax
revenues in the current year.
During the current fiscal year, the Capital projects fund has undertaken significant infrastructure
projects to design and build sidewalks along U.S. 1 our major corridor thru the City and infill
sidewalks leading to our schools to provide a safer means of travel for pedestrian traffic.
Proprietary Funds - The City of Edgewater's proprietary funds provide the same type of
information found in the government-wide financial statements, but in more detail.
Unrestricted net position of the proprietary funds at the year-end amounted to $7,007,439. The
total decrease in net position for these funds was $579,962. Other factors concerning the
finances of these funds have already been addressed in the discussion of the City of
Edgewater's business-type activities.
General Fund Budgetary Highlights
During the year, actual revenues were $150,483 less than budgeted revenues primarily due to
lesser than anticipated utility and franchise taxes, intergovernmental revenues, and investment
earnings.
Actual expenditures were $527,053 less than budgeted expenditures primarily due to less other
contractual costs and less salary & benefit costs.
11
Capital Asset and Debt Administration
Capital Assets - The City of Edgewater's investment in capital assets for its governmental and
business-type activities as of September 30, 2014, amounts to $93,728,611 net of accumulated
depreciation. This investment in capital assets includes land, buildings, improvements,
machinery and equipment and infrastructure. The total decrease in the City's investment in
capital assets for the current fiscal year was 3.92%.
City of Edgewater's Capital Assets
(net of depreciation)(in whole dollars)
Governmental Activities Business-Type Activities Total Primary Government
2014 2013 2014 2013 2014 2013
Land $ 23,094,587 $ 23,094,577 $ 1,235,467 $ 1,235,467 $ 24,330,054 $ 24,330,044
Buildings 4,106,830 4,343,106 8,590,331 9,517,679 12,697,161 13,860,785
Improvements 8,237,968 8,866,817 37,153,221 30,836,526 45,391,189 39,703,343
Machinery and equipment 1,120,052 1,155,500 4,261,030 4,499,609 5,381,082 5,655,109
Infrastructure 3,727,924 5,912,669 - - 3,727,924 5,912,669
Construction in progress 1,980,083 1,575,536 221,118 6,512,578 2,201,201 8,088,114
Total $ 42,267,444 $ 44,948,205 $ 51,461,167 $ 52,601,859 $ 93,728,611 $ 97,550,064
Additional information on the City of Edgewater's capital assets can be found in Note IV E of the
notes to the financial statements on pages 40-41 of this report.
Long-Term Debt
At the end of the current fiscal year, the City of Edgewater had total debt outstanding of
$25,285,759. This debt includes bonds payable, notes payable, state revolving loan and capital
leases. In FY 2014, the City issued the City of Edgewater, Capital Improvement Revenue Note,
Series 2014 for the purchases of a fire pumper, a Vac-Con truck, Utility website, and
Stormwater projects. Also in FY 2014 the City finished drawing on the State Revolving Loan for
the wastewater treatment plant renewal and replacement. The City is current on all required
debt service obligations.
City of Edgewater's Outstanding Debt
(in whole dollars)
Governmental Activities Business-Type Activities Total Primary Government
2014 2013 2014 2013 2014 2013
Bonds payable $ - $ - $ 12,753,000 $ 13,946,595 $ 12,753,000 $ 13,946,595
Notes payable_ 1,560,000 1,382,019 4,455,000 4,142,717 6,015,000 5,524,736
loan - - 6,290,915 4,403,042 6,290,915 4,403,042
Capital leases 226,844 287,916 - - 226,844 287,916
$ 1,786,844 $ 1,669,935 $ 23,498,915 $ 22,492,354 $ 25,285,759 $ 24,162,289
During the current fiscal year, the City's total debt increased by $1,123,470 (5%).
12
Additional information on the City of Edgewater's long-term debt can be found in Note IV G of
the notes to the financial statements on pages 42-46 of this report.
Reserve Policy
The City Council has approved a Reserve Policy, which was adopted within the City Charter.
The policy addresses that the City is required to maintain reserves at a minimum of 15 percent
with a maximum of 25 percent of the general fund. The reserve range is established based on a
percentage of current years' budget. Reserve levels above the top of the range are deemed to
be available for capital or other lawful purposes.
The Reserve amount per Charter is currently set at $2,045,877 (16.3%) of the FY2014 — 2015
General Fund Budget. The City Council has designated $600,000 towards the future
replacement of City Hall and $150,749 for subsequent year's budget appropriation. The
nonspendable balance is $422,120 with restricted balances of$2,990. The amount available for
capital or other lawful purposes less any reserves or set asides is $2,770,632 at September 30,
2014. The increase in available reserves is attributed to revenues exceeding forecast while
maintaining expenditures at or below forecast.
Next Year's Budget and Rates
The City Council adopted a conservative budget for Fiscal Year 2014/2015. The proposed
budget contains many ambitious work plan objectives that are intended to address the highest
priorities in the community and the goals of the City Council. This budget also sets the financial
foundation to establish an accurate and understandable assessment and tracking of the uses
and sources of all funds. The 2014/2015 budget presents a number of opportunities and
challenges to improve overall service to the community while dealing with the slow recovery as
a result of the severe economic downturn. By any standard this is a very aggressive program of
work that will challenge the capacity of staff and the City Council to accomplish under the slow
recovery.
The proposed General Fund budget for Fiscal Year 2014/2015 includes the following
assumptions:
• Realization of reduced revenues as a result of the current economic conditions.
• Decreases in operating expenditures consistent with the revenue forecasts.
• Maintenance of service levels and program to the extent possible and minimal
reductions in service levels where appropriate.
Requests for Information
This financial report is designed to provide a general overview of the City of Edgewater's
finances for those with an interest in the government's finances. Questions concerning any of
the information should be addressed to the office of the Finance Director, City of Edgewater,
P.O. Box 100, Edgewater, Florida 32132-0100.
13
City of
IBIDGEWATER
Inc. 1951
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14
CITY OF EDGEWATER, FLORIDA
Statement of Net Position
September 30,2014
Governmental- Business-type
type Activities Activities Total
ASSETS
Cash and cash equivalents $ 1,878,204 $ 6,662,209 $ 8,540,413
Investments 2,850,519 - 2,850,519
Receivables, net 402,318 1,609,395 2,011,713
Special assessment receivable,net - 125,357 125,357
Internal balances (362,325) 362,325 -
Due from other governments 504,752 301,360 806,112
Inventories and prepaids 444,618 - 444,618
Restricted assets:
Cash and cash equivalents - 1,874,078 1,874,078
Investment in joint venture 163,209 - 163,209
Pension assets 356,322 - 356,322
Capital Assets
Nondepreciable assets 25,074,670 1,456,585 26,531,255
Depreciable assets,net 17,192,774 50,004,582 67,197,356
Total assets 48,505,061 62,395,891 110,900,952
DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Refunding - 90,997 90,997
Total deferred outflows of resources - 90,997 90,997
LIABILITIES
Accounts payable and other current liabilities 735,206 296,629 1,031,835
Accrued interest payable 17,480 180,618 198,098
Unearned revenue 62,793 - 62,793
Due to other governments 1,604 - 1,604
Customer deposits - 915,196 915,196
Noncurrent liabilities
Due within one year 1,072,467 2,548,323 3,620,790
Due in more than one year 2,715,697 21,883,254 24,598,951
Total liabilities 4,605,247 25,824,020 30,429,267
NET POSITION
Net investment in capital assets 40,480,601 27,962,252 68,442,853
Restricted for:
Debt service - 1,307,886 1,307,886
Public safety 360,889 - 360,889
Capital projects 891,785 386,453 1,278,238
Scholarships 2,990 - 2,990
Unrestricted 2,163,549 7,006,277 9,169,826
Total net position $ 43,899,814 $ 36,662,868 $ 80,562,682
The notes to the financial statements are an integral part of this statement.
15
CITY OF EDGEWATER, FLORIDA
Statement of Activities
For the Fiscal Year Ended September 30, 2014
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities:
General administrative $ 2,060,966 $ 178,890 $ - $ -
Public works 3,514,532 248,531 411,284 223,127
Public safety 6,767,861 507,279 30,917 93,984
Culture and recreation 1,464,164 14,896 - 16,173
Interest on long-term debt 60,282 - - -
Total governmental activities 13,867,805 949,596 442,201 333,284
Business-type activities:
Water/Sewer 8,459,432 8,383,806 - 111,295
Refuse 2,697,843 2,693,938 -
Stormwater 1,266,675 1,300,575 -
Total business-type activities 12,423,950 12,378,319 - 111,295
Total primary government $ 26,291,755 $ 13,327,915 $ 442,201 $ 444,579
General revenues:
Property taxes
Utility and franchise taxes
Intergovernmental shared revenue-non-program
Investment earnings
Gain on sale of assets
Miscellaneous revenue
Transfers
Total general revenues and transfer:
Change in net positior
Net position-beginning,as restated
Net position-ending
The notes to the financial statements are an integral part of this statement.
16
Net(Expense)Revenue and
Changes in Net Position
Governmental Business-type
Activities Activities Total
$ (1,882,076) $ $ (1,882,076)
(2,631,590) (2,631,590)
(6,135,681) (6,135,681)
(1,433,095) (1,433,095)
(60,282) (60,282)
(12,142,724) (12,142,724)
35,669 35,669
(3,905) (3,905)
33,900 33,900
65,664 65,664
(12,142,724) 65,664 (12,077,060)
4,120,260 - 4,120,260
3,182,716 3,182,716
2,030,522 - 2,030,522
52,399 6,517 58,916
14,500 - 14,500
134,304 99,023 233,327
717,647 (717,647) -
10,252,348 (612,107) 9,640,241
(1,890,376) (546,443) (2,436,819)
45,790,190 37,209,311 82,999,501
$ 43,899,814 $ 36,662,868 $ 80,562,682
17
CITY OF EDGEWATER,FLORIDA
Balance Sheet
Governmental Funds
September 30,2014
Other Total
Capital Projects Governmental Governmental
General Fund Fund Funds Funds
ASSETS
Cash $ 626,178 $ 571,577 $ 454,143 $ 1,651,898
Investments 2,850,519 - - 2,850,519
Receivables--net of allowance for uncollectibles 396,245 - 15 396,260
Due from other governments 476,109 28,638 5 504,752
Inventories and prepaids 422,120 - - 422,120
Total assets $ 4,771,171 $ 600,215 $ 454,163 $ 5,825,549
LIABILITIES
Accounts payable $ 234,654 $ 155,280 $ - $ 389,934
Accrued liabilities 163,433 - 163,433
Due to other governments 1,604 1,604
Advances from other funds 362,325 - 362,325
Unearned revenues 62,664 129 62,793
Total liabilities 824,680 155,409 980,089
FUND BALANCES
Nonspendable:
Inventories and prepaids 422,120 - 422,120
Restricted for
Scholarships 2,990 - 2,990
Public safety - 4,567 4,567
Debt service - 2,617 2,617
Capital projects - 444,806 446,979 891,785
Assigned to:
Subsequent year's budget appropriation of fund balance 150,749 - - 150,749
City Hall 600,000 600,000
Unassigned 2,770,632 - - 2,770,632
Total fund balances 3,946,491 444,806 454,163 4,845,460
Total liabilities and fund balances $ 4,771,171 $ 600,215 $ 454,163 $ 5,825,549
The notes to the financial statements are an integral part of this statement.
18
CITY OF EDGEWATER, FLORIDA
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
September 30,2014
Total governmental funds fund balance $4,845,460
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and,therefore,are not reported
in the funds-total less accumulated depreciation.
Land and land rights $ 23,094,587
Buildings and improvements 26,112,398
Infrastructure 56,434,524
Furniture and equipment 4,051,176
Construction in progress 1,955,208
Accumulated depreciation (69,504,587)
42,143,306
Investment in joint venture is not a financial asset and therefore is not reported in the funds. 163,209
Internal service funds are used by management to charge the costs of fleet,management information systems
and insurance activities to individual funds.The assets and liabilities of the internal service funds are included
in governmental activities in the statement of net position. 22,300
The cumulative net pension contribution in excess of the annual required contribution is presented as an asset
on the government-wide statement of net position. 356,322
Long-term liabilities are not due and payable in the current period and,therefore,are not reported in the funds.
Compensated absences $ 1,507,731
OPEB 421,935
Long-term debt 1,683,843
(3,613,509)
Accrued interest payable on bonds that is not recognized on the fund statements. (17,274)
Net position of governmental activities $43,899,814
The notes to the financial statements are an integral part of this statement.
19
CITY OF EDGEWATER, FLORIDA
Statement of Revenues, Expenditures,and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended September 30,2014
Other Total
Capital Projects Governmental Governmental
General Fund Fund Funds Funds
REVENUES
Taxes:
Property $ 4,085,728 $ $ 34,532 $ 4,120,260
Utility and franchise taxes 3,182,716 - 31182,716
Intergovernmental 2,472,551 336,659 3,355 2,812,565
Licenses and permits 263,641 - - 263,641
Charges for services 1,319,396 - 1,319,396
Fines and forfeitures 233,754 6,395 240,149
Investment earnings 52,158 241 52,399
Impact fees - 102,105 102,105
Miscellaneous revenue 134,461 - - 134,461
Total revenues 11,744,405 336,659 146,628 12,227,692
EXPENDITURES
Current:
Legislative 96,597 - - 96,597
Executive 567,755 567,755
Legal counsel 101,398 101,398
Community development 459,651 459,651
Public works 588,415 - 588,415
Public safety:
Law enforcement 3,246,220 16,639 3,262,859
Fire and emergency services 2,942,624 - 2,942,624
Code enforcement 75,725 75,725
Animal services 110,809 110,809
Culture and recreation 1,198,951 1,198,951
General administrative services 1,680,375 - 1,680,375
Debt Service:
Principal 398,092 20,000 418,092
Interest 33,994 - 13,650 47,644
Capital outlay 396,952 412,234 80,082 889,268
Total expenditures 11,897,558 412,234 130,371 12,440,163
Excess(deficiency)of revenues over
(under)expenditures (153,153) (75,575) 16,257 (212,471)
OTHER FINANCING SOURCES(USES)
Transfers in 698,897 379,271 - 1,078,168
Transfers out (309,056) - (70,215) (379,271)
Issuance of debt 432,000 432,000
Sale of capital assets 6,997 - 6,997
Total other financing sources(uses) 828,838 379,271 (70,215) 1,137,894
Net change in fund balances 675,685 303,696 (53,958) 925,423
Beginning fund balances 3,270,806 141,110 508,121 3,920,037
Ending fund balances $ 3,946,491 $ 444,806 $ 454,163 $ 4,845,460
The notes to the financial statements are an integral part of this statement.
20
CITY OF EDGEWATER,FLORIDA
Reconciliation of the Statement of Revenues,
Expenditures,and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
For the Fiscal Year Ended September 30,2014
Net change in fund balances-total governmental funds $ 925,423
Amounts recorded for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures.However,in the statement of activities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense.This
is the amount by which capital outlays exceeded depreciation in the current period.
Expenditure for capital assets $ 747,245
Current year depreciation (3,418,009)
(2,670,764)
The net effect of various miscellaneous transactions involving capital assets(I.e.sales,trade-ins,
donations,CIP project abandoned)is to decrease net position. (43,217)
Some expenses reported in the statement of activities do not require the use of current financial resources
and,therefore,are not reported as expenditures in the governmental funds.
Changes in compensated absences $ 9,484
Changes in OPEB obligation (62,799)
Changes in interest payable (8,506)
(61,821)
The net revenue of certain activities of internal service funds is reported with governmental activities. (33,519)
Pension expenses recorded in the statement of activities which are in excess of the annual required pension contribution
are considered to be assets and not expenses of the period. 7,430
The issuance of long-term debt(I.e.,bonds and leases)provides current financial resources to governmental
funds,while the repayment of the principal long-term debt consumes the current financial resources of
governmental funds. Neither transaction has any effect on net position.Also,governmental funds report the
effect of premiums,discounts,and deferred amount on refunding,when debt is first issued,whereas these
amounts are deferred and amortized in the Statement of Activities.
Principal payments $ 418,092
Debt issued (432,000)
(13,908)
Change in net position of governmental activities $ (1,890,376)
The notes to the financial statements are an integral part of this statement.
21
CITY OF EDGEWATER, FLORIDA
Statement of Revenues, Expenditures,and
Changes in Fund Balances--Budget and Actual
General Fund
For the Fiscal Year Ended September 30,2014
Variance with
Budgeted Amounts Final Budget-
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes:
Property $ 4,034,382 $ 4,082,003 $ 4,085,728 $ 3,725
Utility and franchise taxes 3,134,737 3,274,711 3,182,716 (91,995)
Intergovernmental 2,532,222 2,522,871 2,472,551 (50,320)
Licenses and permits 248,300 272,391 263,641 (8,750)
Charges for services 1,367,143 1,324,044 1,319,396 (4,648)
Fines and forfeitures 191,800 223,108 233,754 10,646
Investment earnings 25,000 72,033 52,158 (19,875)
Miscellaneous revenue 45,149 123,727 134,461 10,734
Total revenues 11,578,733 11,894,888 11,744,405 (150,483)
EXPENDITURES
Current:
Legislative 90,706 97,841 96,597 1,244
Executive 620,764 588,472 567,755 20,717
Legal counsel 104,000 100,900 101,398 (498)
Community development 451,875 447,756 459,651 (11,895)
Public works 585,152 592,934 588,415 4,519
Public safety:
Law enforcement 3,482,960 3,346,500 3,246,220 100,280
Fire and emergency services 2,935,449 2,980,940 2,942,624 38,316
Code enforcement 180,662 80,333 75,725 4,608
Animal services 120,901 120,901 110,809 10,092
Culture and recreation 1,275,105 1,409,347 1,198,951 210,396
General administrative services 1,254,771 1,805,685 1,680,375 125,310
Debt service:
Principal 278,092 278,092 398,092 (120,000)
Interest 31,650 44,230 33,994 10,236
Capital outlay - 530,680 396,952 133,728
Total expenditures 11,412,087 12,424,611 11,897,558 527,053
Excess(deficiency)of revenues over
(under)expenditures 166,646 (529,723) (153,153) 376,570
OTHER FINANCING SOURCES(USES)
Transfers in 698,897 1,083,897 698,897 (385,000)
Transfers out (704,056) (755,152) (309,056) 446,096
Proceeds from issuance of debt - 432,000 432,000 -
Sale of capital assets 10,000 10,000 6,997 (3,003)
Total other financing sources(uses) 4,841 770,745 828,838 58,093
Net change in fund balances 171,487 241,022 675,685 434,663
Beginning fund balances 3,270,806 3,270,806 3,270,806 -
Ending fund balances $ 3,442,293 $ 3,511,828 $ 3,946,491 $ 434,663
The notes to the financial statements are an integral part of this statement.
22
CITY OF EDGEWATER, FLORIDA
Statement of Net Position
Proprietary Funds
September 30,2014
Business-type Activities-Enterprise Funds
Governmental
Major Funds Activities-
Water/Sewer Stormwater Internal Service
Utility Refuse Utility Utility Total Funds
ASSETS
Current assets:
Cash and cash equivalents $ 4,624,821 $ 684,251 $ 1,353,137 $ 6,662,209 $ 226,306
Receivables,net 1,078,058 361,860 169,477 1,609,395 6,058
Due from other governments 301,360 - - 301,360 -
Inventories - - 22,498
Special assessments receivable 64,339 - - 64,339 -
Total current assets 6,068,578 1,046,111 1,522,614 8,637,303 254,862
Noncurrent assets:
Advances to other funds - - 362,325 362,325 -
Restricted cash and cash equivalents:
Debt service 1,487,625 - 1,487,625
Capital projects 386,453 386,453
Total restricted cash
and cash equivalents 1,874,078 - 1,874,078
Capital assets:
Land and land rights 966,228 - 269,239 1,235,467 -
Buildings and improvements 73,605,725 69,075 8,298,917 81,973,717 60,684
Machinery and equipment 8,314,984 2,248,728 1,024,089 11,587,801 110,134
Construction in progress - 120,090 101,028 221,118 24,875
Less accumulated depreciation (38,026,990) (1,604,355) (3,925,591) (43,556,936) (71,555)
Total capital assets(net
of accumulated depreciation) 44,859,947 833,538 5,767,682 51,461,167 124,138
Special assessment receivable 61,018 - - 61,018 -
Total noncurrent assets 46,795,043 833,538 6,130,007 53,758,588 124,138
Total assets $ 52,863,621 $ 1,879,649 $ 7,652,621 $ 62,395,891 $ 379,000
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding $ 90,997 $ - $ - $ 90,997 $ -
Total deferred outflows of resource: $ 90,997 $ - $ - $ 90,997 $ -
LIABILITIES
Current liabilities:
Accounts payable $ 61,568 $ 70,146 $ 6,441 $ 138,155 $ 172,893
Accrued liabilities 108,769 30,956 18,749 158,474 8,946
Compensated absences 303,443 107,790 70,560 481,793 23,847
Customer deposits 915,196 - - 915,196 -
Accrued interest payable 179,739 879 180,618 206
Notes payable-current 713,607 38,923 752,530 9,112
Revenue bonds payable-current 1,314,000 - - 1,314,000 -
Total current liabilities 3,596,322 208,892 135,552 3,940,766 215,004
Noncurrent liabilities:
Compensated absences 174,130 38,039 15,495 227,664 31,950
OPEB obligation 137,687 60,112 25,406 223,205 15,858
Long-term debt payable after one year 21,031,308 - 401,077 21,432,385 93,888
Total noncurrent liabilities 21,343,125 98,151 441,978 21,883,254 141,696
Total liabilities 24,939,447 307,043 577,530 25,824,020 356,700
NET POSITION
Net investment in capital assets 21,801,032 833,538 5,327,682 27,962,252 21,138
Restricted:
Capital projects 386,453 - - 386,453 -
Debt service 1,307,886 - - 1,307,886 -
Unrestricted 4,519,800 739,068 1,747,409 7,006,277 1,162
Total net position $ 28,015,171 $ 1,572,606 $ 7,075,091 $ 36,662,868 $ 22,300
The notes to the financial statements are an integral part of this statement.
23
CITY OF EDGEWATER, FLORIDA
Statement of Revenues, Expense and
Changes in Fund Net Position
Proprietary Funds
For the Fiscal Year Ended September 30,2014
Business-type Activities-Enterprise Funds
Governmental
Major Funds Activities-
Waterl Sewer Stormwater Internal Service
Utility Refuse Utility Utility Total Funds
Operating revenues:
Charges for sales and services $ 8,383,806 $ 2,693,938 $ 1,300,575 $ 12,378,319 $ 3,924,485
Operating expenses:
Salaries and employee benefits 2,768,025 1,137,636 616,841 4,522,502 2,585,250
Supplies and materials 564,931 158,314 46,193 769,438 492,861
Contract services 452,756 805,210 12,443 1,270,409 177,558
Other services and charges 1,562,959 430,606 254,826 2,248,391 700,705
Depreciation and amortization 2,544,890 166,077 318,727 3,029,694 23,751
Total operating expenses 7,893,561 2,697,843 1,249,030 11,840,434 3,980,125
Operating income(loss) 490,245 (3,905) 51,545 537,885 (55,640)
Nonoperating revenues(expenses):
Investment earnings 5,909 266 342 6,517
Miscellaneous revenues 75,983 17,246 5,794 99,023 -
Gain(Loss)on disposition of capital assets (102,068) - - (102,068) 7,503
Interest expense (463,803) - (17,645) (481,448) (4,132)
Total nonoperating revenues(expenses) (483,979) 17,512 (11,509) (477,976) 3,371
Income before capital contributions
and transfers 6,266 13,607 40,036 59,909 (52,269)
Transfers in - - - - 103,421
Transfers out (489,484) (146,393) (81,770) (717,647) (84,671)
Capital contributions and grants 111,295 111,295
Change in net position (371,923) (132,786) (41,734) (546,443) (33,519)
Total net position-beginning,as restated 28,387,094 1,705,392 7,116,825 37,209,311 55,819
Total net position-ending $ 28,015,171 $ 1,572,606 $ 7,075,091 $ 36,662,868 $ 22,300
The notes to the financial statements are an integral part of this statement.
24
CITY OF EDGEWATER, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30,2014
Business-type Activities-Enterprise Funds
Governmental
Major Funds Activities-
Waterl Sewer Stormwater Internal Service
Utility Refuse Utility Utility Total Funds
Cash flows from operating activities:
Receipts-customers and users $ 8,364,436 $ 2,686,642 $ 1,298,752 $ 12,349,830 $ 3,918,427
Payments-suppliers (3,674,364) (1,403,372) (308,004) (5,385,740) (3,626,403)
Payments-employees (2,739,713) (1,146,364) (592,278) (4,478,355) (344,866)
Net cash provided(used)by operating activities 1,950,359 136,906 398,470 2,485,735 (52,842)
Cash flows from noncapital financing activities:
Cash paid to other funds (489,484) (146,393) (444,095) (1,079,972) -
Cash received from other funds - - - - 18,750
Net cash provided(used)by noncapital financing activities (489,484) (146,393) (444,095) (1,079,972) 18,750
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (1,748,307) (175,677) (67,087) (1,991,071) (56,765)
Proceeds from sale of capital assets - - - - 7,503
Interest payments on debt (478,109) - (16,766) (494,875) (4,132)
Capital contributions and fees 231,405 17,246 5,794 254,445 -
Proceeds from issuance of debt 2,232,538 - 440,000 2,672,538 103,000
Principal paid on debt (1,765,999) - (1,765,999)
Net cash provided(used)by capital and related financing activities (1,528,472) (158,431) 361,941 (1,324,962) 49,606
Cash flows from investing activities:
Interest on investments 5,909 266 342 6,517
Net cash provided(used)by investing activities 5,909 266 342 6,517 -
Net increase(decrease)in cash and cash equivalents (61,688) (167,652) 316,658 87,318 15,514
Beginning cash and cash equivalents 6,560,587 851,903 1,036,479 8,448,969 210,792
Ending cash and cash equivalents $ 6,498,899 $ 684,251 $ 1,353,137 $ 8,536,287 $ 226,306
Reconciliation of operating income(loss)to net cash provided
(used) by operating activities:
Operating income $ 490,245 $ (3,905) $ 51,545 $ 537,885 $ (55,640)
Adjustments to reconcile operating income(loss)to net cash provided
(used)by operating activities:
Depreciation and amortization 2,544,890 166,077 318,727 3,029,694 23,751
(Increase)decrease in assets:
Accounts receivable (6,374) (7,296) (1,823) (15,493) (6,058)
Inventories 2,003 316 1,043 3,362 (2,137)
Increase(decrease)in liabilities:
Accounts payable and accrued expenses (1,121,120) (24,383) 4,112 (1,141,391) (5,261)
Compensated absences 32,530 (2,748) 20,867 50,649 (10,581)
OPEB obligation 21,181 8,845 3,999 34,025 3,084
Customer deposits (12,996) - - (12,996)
Total adjustments 1,460,114 140,811 346,925 1,947,850 2,798
Net cash provided(used)by operating activities $ 1,950,359 $ 136,906 $ 398,470 $ 2,485,735 $ (52,842)
Classified As
Cash and cash equivalents $ 4,624,821 $ 684,251 $ 1,353,137 $ 6,662,209 $ 226,306
Restricted cash and cash equivalents 1,874,078 - - 1,874,078 -
Total $ 6,498,899 $ 684,251 $ 1,353,137 $ 8,536,287 $ 226,306
The notes to the financial statements are an integral part of this statement.
25
CITY OF EDGEWATER, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2014
Pension
Trust Funds
ASSETS
Accrued interest $ 87,776
Investments,at fair value:
Money market funds 1,341,064
Certificates of deposit 50,061
US Treasury notes 137,812
GNMA/FMNA 2,453,713
Municipal bonds 610,410
Corporate bonds 5,957,392
Equities 9,702,398
Mutual fund-equities 10,231,771
Total assets 30,572,397
LIABILITIES
Accounts payable 13,902
Unearned contributions 28,668
Total liabilities 42,570
NET POSITION
Held in trust for pension benefits $ 30,529,827
The notes to the financial statements are an integral part of this statement.
26
CITY OF EDGEWATER, FLORIDA
Statement of Changes in Fiduciary Net Position
Pension Trust Funds
For the Fiscal Year Ended September 30, 2014
Pension Trust
Funds
ADDITIONS
Contributions:
Employer $ 1,657,307
Employee 177,256
State of Florida 280,769
Total contributions 2,115,332
Investment earnings(loss):
Interest and dividends 842,346
Net increase in the fair value of investments 2,240,313
Total investment earnings(loss) 3,082,659
Less investment expenses (18,221)
Net investment earnings(loss) 3,064,438
Total Additions 5,179,770
DEDUCTIONS
Pension benefits 2,286,723
Administrative expenses 201,811
Total deductions 2,488,534
Change in net position 2,691,236
Net position-beginning of year 27,838,591
Net position-end of Year $ 30,529,827
The notes to the financial statements are an integral part of this statement.
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City of
IBIDGEWATER
Inc. 1951
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I. Summary of Significant Accounting Policies
The accompanying financial statements present the financial position, changes in financial position and
cash flows of the applicable fund types governed by the City Council of the City of Edgewater, Florida
("the City") and have been prepared in conformity with accounting principles generally accepted in the
United States of America (GAAP) as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting
and financial reporting principles. The most significant of the City's accounting policies are described
below.
A. Reporting Entity:
The City of Edgewater was originally incorporated under general law on October 20, 1924. The City became
the City of Edgewater and incorporated in 1951 as a political subdivision of the State of Florida and a
municipal corporation with a five-member Council, including a Mayor and Vice-Mayor. The registered
voters of the City of Edgewater elect the Mayor and Council. The Council appoints the City Manager, who
in turn performs as the administrator of the everyday operations of the City. The City provides a full range
of municipal services as directed by the City Charter including general government, public safety, public
improvements, planning and zoning, water and sewer service, refuse collection, a recycling program, a
stormwater management utility program, and related general and administrative services to 20,748
residents.
In evaluating how to define the government, for financial reporting purposes, the City has considered all
potential component units. The definition of the reporting entity is based primarily on the notion of financial
accountability. A primary government is financially accountable for the organizations that make up its legal
entity. It is also financially accountable for legally separate organizations if its officials appoint a voting
majority of an organization's governing body, and either it is able to impose its will on that organization or
there is a potential for the organization to provide specific financial benefits to, or to impose specific financial
burdens on, the primary government. A primary government may also be financially accountable for
governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly influence the
programs, projects or activities of, or the level of services performed or provided by, the organization. A
financial benefit or burden relationship exists if the primary government (a) is entitled to the organizations'
resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or
provide financial support to, the organization; or (c) is obligated in some manner for the debt of the
organization. In applying the above criteria, management has determined that there are no component units
to be included within the reporting entity.
B. Government-wide and Fund Financial Statements:
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non-fiduciary activities of the City. For the most part the effect of
inter-fund activity has been removed from these statements. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent, on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Certain indirect expenses are included in the program expense reported for
individual functions and segments. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
29
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported as general revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation:
The government-wide financial statements are reported using the economic resources measurement
focus and the full accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Grant funds received prior to the incurrence of eligible expenditures are reported as deferred revenues in
the fund financial statements and are included in accounts payable and other current liabilities on the
government-wide financial statements.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded when payment is due.
Property taxes, franchise taxes, certain other tax revenues, intergovernmental revenues, licenses, and
interest associated with the current fiscal period are all considered to be susceptible to accrual and so
have been recognized as revenues of the current fiscal period. All other revenue items are considered to
be measurable and available only when the City receives cash.
The City reports the following major governmental funds:
• The General Fund is the City's primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
• The Capital Projects Fund is used to account for the financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by proprietary
and trust funds).
The City reports the following major proprietary funds:
• The Water and Sewer Utility Fund is used to account for the activities of the City's water and
wastewater systems, which are financed similar to private business enterprises, where the
costs, including depreciation, of providing services to the general public on an ongoing basis
are financed through user charges.
30
• The Refuse Utility Fund accounts for the activities of the City's refuse collection and recycling
services.
• The Stormwater Management Utility Fund accounts for the activities of the City's stormwater
management, conservation, protection, control, use and enhancement of stormwater.
Additionally, the City reports the following fund types:
• Special Revenue Funds account for specific revenue resources that are restricted by law or
administrative action to expenditures for specific purposes.
• Pension Trust Funds account for the activities of the Police Officers Pension Fund, the
Firefighters Pension Fund and the General Employees' Pension Fund, which accumulate
resources for pension benefit payments to qualified employees.
• Internal Services Funds account for fleet management services, management information
systems, general liability insurance, health insurance, and workers' compensation insurance.
As a rule the effect of inter-fund activity has been eliminated from the government-wide financial
statements. Exceptions to the rule are payments-in-lieu of taxes and other charges between the
government's water, sewer, and stormwater functions and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned.
Amounts reported as program revenues include:
1. Charges to customers or applicants for goods, services, or privileges provided,
2. Operating grants and contributions, and
3. Capital grants and contributions.
Internal, dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
Water and Sewer Utility Fund, the Refuse Fund, and the Stormwater Management Utility Fund are
charges to customers for sales and services. The Water and Sewer Utility fund also recognizes as
operating revenue the portion of impact fees intended to recover the cost of connecting new customers to
the system. Operating expenses for the enterprise and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted
bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as
restricted — net position and unrestricted — net position in the government-wide and proprietary fund
financial statements, a flow assumption must be made about the order in which the resources are
considered to be applied. It is the government's policy to consider restricted — net position to have been
depleted before unrestricted —net position is applied.
31
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make use of estimates that affect reported amounts in
the basic financial statements. Actual results could differ from estimates.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
1. Deposits and investments
The City's cash consists of cash on hand, demand deposits, and equity in pooled cash. The equity in
pooled cash represents a fund's share of a cash pool maintained by the City for the use of all funds
except the pension trust funds and funds that require separate bank accounts.
Florida Statutes and/or the City's investment policy authorize the City to invest in the Local Government
Surplus Funds Trust Fund Investment Pool, United States Government Securities, United States
Government Agencies, Federal Instrumentalities, Interest Bearing Time Deposit or Saving Accounts,
Repurchase Agreements, Commercial Paper, High Grade Corporate Notes, Bankers' Acceptances, State
and/or Local Government Taxable and/or Tax-Exempt Debt, Registered Investment Companies (Money
Market Mutual Funds).
Florida Statutes and/or the pension plans' investment policies allow the City's retirement plans' trustees to
invest in time deposits, savings and money market deposit accounts of a national bank, a state bank
insured by the Bank Insurance Fund, a savings/building and loan association insured by the Savings
Association Insurance Fund, a state or federal chartered credit union whose share accounts are insured
by the National Credit Union Share Insurance Fund; Obligations issued by the United States Government
or obligations guaranteed as to principal and interest by the United States Government or by an agency
of the United States Government; stocks, bonds or other evidences of indebtedness issued or guaranteed
by a corporation organized under the laws of the United States or the District of Columbia; foreign stocks,
bonds or other evidences of indebtedness; and real estate investments made through participation in
diversified commingled funds of real properties.
Investments are stated at fair value. Changes in the fair value during the year are included in investment
income. The Local Governmental Surplus Funds Trust Fund (LGSF) is governed by Chapter 19-7 of the
Florida Administrative Code which identifies the Rules of the State Board of Administration (SBA). These
rules provide guidance and establish the general operating procedures for the administration of the
LGSF. Additionally, the Office of the Auditor General performs the operational audit of the activities and
investments of the SBA. The LGSF is not a registrant with the Securities and Exchange Commission;
however, the Board has adopted operating procedures consistent with the requirements for a 2a-7-like
fund. The LGSF Pool's investments are recorded at amortized cost.
2. Receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as either "due to/due from other funds" (i.e., the current portion of inter-
fund loans) or "advances to/from other funds" (i.e., the non-current portion of inter-fund loans). All other
outstanding balances between funds are reported as "due to/due from other funds". Any residual
balances outstanding between governmental activities and business-type activities are reported in the
government-wide financial statements as "internal balances".
Accounts receivable balances are shown net of the allowance for uncollectibles. The allowances are
determined based on management estimates of uncollectible amounts.
32
Advances between funds, as reported in the fund financial statements, are offset by nonspendable fund
balance in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable available financial resources.
3. Inventories and prepaid items
Inventories are valued at cost, using the first-in/first-out (FIFO) method. The costs of governmental fund-
type inventories are recorded as expenditures when consumed rather than when purchased. Payments
made to vendors for services that will benefit periods beyond the current fiscal year are recorded as
prepaid items.
4. Restricted assets
Certain proceeds of revenue bonds, as well as certain resources set aside for their repayment, are
classified as restricted assets on the balance sheet and statement of net position and their use is limited
by applicable bond covenants. Restricted cash and investments in the enterprise funds represent debt
issuance proceeds that are restricted assets for purchase of assets, construction and repayment of
bonded debt respectively. In the enterprise fund statement of net position, bond issuance proceeds as
well as other assets are set aside for their repayment and itemized in the restricted cash and investments.
5. Capital assets
In the Government Wide and Proprietary Fund financial statements, capital assets purchased or acquired
are carried at historical cost or estimated historical cost. Contributed assets are recorded at fair market
value as of the date received. The City defines capital assets as assets with an initial, individual cost of
more than $5,000 and an estimated useful life in excess of one year. The costs of normal maintenance
and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized.
The City has implemented the provisions of GASB Statement No. 34. In this process, infrastructure
assets are being accounted for using different methods. For governmental activities, the cost or estimated
cost of roads and sidewalks are presented. The City compiled this information and recorded all roads and
sidewalks acquired after June 30, 1980 during the fiscal year ending September 30, 2007. For business
type activities, infrastructure assets have been capitalized at cost. Water and sewer utility improvements
are being depreciated over their useful lives. The City has recorded all drainage infrastructure acquired
including pre-GASB 34 assets.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed, net of any interest earnings on specific project debt
issued. In Governmental funds capital outlay (capital assets) are reported as expenditures and no
depreciation expense is reported.
Buildings and improvements, improvements other than buildings, and machinery and equipment
(including assets amortized under lease purchase contracts) are amortized using the straight-line method
over the following estimated useful lives:
Infrastructure 20-30 Years
Buildings and improvements 10-50 Years
Improvements other than buildings 5-65 Years
Machinery and equipment 3-35 Years
33
6. Deferred outflows of resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then.
7. Compensated absences
The City records the vested portion of accumulated unused compensated absences at year-end based on
each employee's unused hours and rate of pay, including the City's share of Social Security and
Medicare taxes and pension costs. All compensated absences are accrued when earned in the
government-wide and proprietary fund financial statements as accrued liabilities. A liability for these
amounts is reported in the governmental funds only if they have matured, for example, as a result of
employee resignations and retirements. The liability for compensated absences in the Proprietary Fund
Types is liquidated in the Proprietary Fund in which the liability originally incurred.
8. Long-term obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and
discounts, are deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are
expenses when paid.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuances costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
9. Deferred inflows of resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time.
10. Fund balance
Beginning with fiscal year 2011, the City implemented GASB Statement No. 54, "Fund Balance Reporting
and Governmental Fund Type Definitions." This Statement provides more clearly defined fund balance
categories to make the nature and extent of the constraints placed on a government's fund balance more
transparent. The following classifications describe the relative strength of the spending constraints:
Nonspendable fund balance - amounts that are not in spendable form (such as prepaid expenses and
advances due from other funds) or are required to be maintained intact.
Restricted fund balance - amounts constrained to specific purposes by their providers (such as grantors,
bondholders, and higher levels of government), through constitutional provisions or by enabling
legislation.
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Committed fund balance - amounts constrained to specific purposes by the City itself, using its highest
level of decision-making authority (City Council). To be reported as committed, amounts cannot be used
for any other purpose unless the City takes the same highest level action to remove or change the
constraint. City Council establishes (and modifies or rescinds) fund balance commitments by passage of
a resolution.
Assigned fund balance - amounts the City intends to use for a specific purpose. Intent can be expressed
by the City Council or as delegated to the City Manager. The City Council has by resolution authorized
City management to assign fund balance. The council may also assign fund balance as it does when
appropriating fund balance to cover a gap between estimated revenue and appropriations in the
subsequent year's appropriated budget. Unlike commitments, assignments generally only exist
temporarily. In other words, an additional action does not normally have to be taken for the removal of an
assignment. Conversely, as discussed above, an additional action is essential to either remove or revise
a commitment.
Unassigned fund balance - amounts that are available for any purpose. Positive amounts are reported
only in the general fund.
Disbursements of fund balances will first be made from restricted amounts when both restricted and
unrestricted fund balance is available. Additionally, the City will first use committed fund balance, followed
by assigned fund balance, and then unassigned fund balance when expenditures are incurred for
purposes which amounts in any of the unrestricted fund balance classifications could be used.
II. Reconciliation of Government-wide and Fund Financial Statements
A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the
Government-wide Statement of Net Position:
The governmental fund balance sheet includes a reconciliation between fund balance — total
governmental funds and net position — governmental activities as reported in the government-wide
statement of net position.
B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities:
The governmental fund statement of revenues, expenditures, and changes in fund balance includes a
reconciliation between net change in fund balance— total governmental funds and change in net position
of governmental activities as reported in the government-wide statement of activities.
III. Stewardship, Compliance and Accountability
A. Budgetary Information:
The annual operating budgets are adopted by City Council using the following procedures:
■ Annual budgets are adopted for all funds of the City except for the Pension Trust funds that are
effectively controlled through governing agreements and related City ordinances. The annual
operating budgets are prepared on a basis consistent with accounting principles generally
accepted in the United States of America. Annual budget appropriations lapse at the end of each
fiscal year, except for unexpended appropriations on open grant programs and capital projects,
which are carried forward in subsequent annual budgets.
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• Encumbrance accounting is employed in governmental funds. Encumbrances represent open
purchase orders and other commitments for goods/services that are not yet received and are
recorded to reserve that portion of the applicable appropriation. Encumbrances are recognized
as expenditures in the period in which the actual goods/services are received and a liability is
incurred. Encumbrances outstanding at year-end are canceled and re-appropriated in the
succeeding year's budget; such amounts, if material, are disclosed in the notes as commitments.
• Prior to the first day of August of each year, the City Manager prepares a recommended budget
for the next succeeding fiscal year and submits it to the City Council. The recommended budget
includes proposed expenditures and the source of receipts to finance them.
• City Council holds a series of budget workshops in addition to a minimum of two public hearings
on the proposed budget and adopts the official annual budget of the City, by ordinance, prior to
September 30.
• The budget, as adopted, may only be amended through formal approval by City Council.
Budgetary integration is established in the accounting records for control purposes at the object
of expenditure level; however, the City Charter establishes the level at which expenditures may
not legally exceed budget at the fund level. Therefore, the City Manager may transfer budgeted
amounts within and between departments of the City without formal approval by City Council.
B. Deficit Net Position:
At September 30, 2014, the Fully Insured internal service fund reported a $161,766 deficit net position.
C. Ad Valorem Property Taxes:
Under Florida law, the assessment of all properties and the collections of all county, municipal, and
school board property taxes are consolidated in the offices of the County Property Appraiser and the
County Tax Collector. Florida Statutes regulating tax assessment are also designed to assure a
consistent property valuation method statewide. State Statutes permit cities to levy property taxes at a
rate of up to ten (10) mills. For the fiscal year ended September 30, 2014, the millage rate in effect was
$6.8760 and the Edgewater I&S 2005 voted debt millage was $.0580 for a total millage of$6.9340.
The tax levy of the City is established by the City Council prior to October 1 of each year and the Volusia
County Property Appraiser incorporates the millage into the total tax levy, which includes the
municipalities, independent districts and the County School Board tax requirements.
Property taxes are levied in November and attached as a lien on property as of January 1 of each year.
All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts
are allowed for early payment at the rate of 4% for payments received in the month of November, 3% for
payments received in the month of December, 2% for payments received in the month of January and 1%
for payments received in the month of February. The taxes paid in March are not subject to discount. Tax
certificates on all property for which taxes are delinquent are sold on or about June 1 of each year.
D. Connection Fees and Impact Fees:
Water and sewer connection fees represent reimbursement of the costs incurred to perform the
connection of the respective utilities. These fees are recorded as non-operating revenue at the time of
service. Impact fees, which are not considered connection fees since they substantially exceed the cost
of connection, are recorded as non-operating revenue in the period earned in the appropriate Enterprise
Fund.
E. Reserve Policy
The City Council has approved a reserve policy, which was adopted within the City Charter. The policy
addresses that the City is required to maintain reserves at a minimum of 15 percent with a maximum of
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25 percent of the General Fund. The reserve range is established based on a percentage of current
years' budget. Reserve levels above the top of the range are deemed to be available for capital or other
lawful purposes.
IV. Detailed Notes on All Funds
A. Deposits:
At September 30, 2014, the carrying amount of the City's bank deposits was $10,400,589. The bank
balance at September 30, 2014 was $10,327,567, all of which is held by a bank that qualifies as a public
depository, as required by Chapter 280 of the Florida Statutes. All of the deposits were covered by the
FDIC or collateralized in accordance with the "Florida Security for Public Deposits Act". (Under the Act,
every qualified public depository shall deposit with the Treasurer eligible collateral having a market value
equal to 50% of the average daily balance for each month that all public deposits are in excess of any
applicable deposit insurance. If the public deposits exceed the total amount of the regulatory capital
accounts of a bank or the regulatory net worth of a savings association, the required collateral shall have
a market value equal to 125% of the deposits). Of the bank balance, no amount was uninsured and
uncollateralized in banks or savings and loans not qualifying under the Act at September 30, 2014.
B. Investments:
The City Council formally adopted a comprehensive investment policy pursuant to Section 218.415,
Florida Statutes that established permitted investments, asset allocation limits and issuer limits, credit
ratings requirements and maturity limits to protect the City's cash and investment assets. The City
maintains a cash and investment pool for the use of all funds except the pension trust funds and funds
that require separate bank accounts.
The City's investment policy allows for the following investments: Local Government Surplus Funds
Trusts (SBA), SEC registered money market funds, Interest- bearing time deposits or savings accounts,
direct obligations of the U.S. Treasury, Federal agencies and instrumentalities, Securities of, or other
interests in, any open-end or closed-end management-type investment company or investment trust
registered under the Investment Company Act of 1940 and Other investments authorized by ordinance.
Investments of the defined benefit pension plans consist principally of debt and equity mutual funds, all of
which are authorized by the plans.
Interest Rate Risk
The City's investment policy does not specifically address interest rate risk; however the general investment
policy is to apply the prudent-person rule: Investments are made as a prudent person would be expected to
act, with discretion and intelligence, to seek reasonable income, preserve capital, and in general, avoid
speculative investments. The City manages its exposure to declines in fair values by investing primarily in
pooled investments that have a weighted average maturity of one year or less, with a special provision
allowing up to 20% of the investment portfolio to have a maturity of not more than five years.
As of September 30, 2014, the City had the following investments and effective duration presented in
terms of years:
Investment Maturities(in Years)
Fair Less More Credit
Investment Type Value Than 1 1-5 6-10 Than 10 Rating
Government-wide
Investments Subject to Rate Risk:
SBA LGIP $ 854,913 $ 854,913 $ $ $ AAAm
Corporate bond 1,995,606 1,995,606 AA+
Total government-wide investments $ 2,850,519 $ 2,850,519 $ $ $
Fiduciary Funds
Investments Subject to Rate Risk:
Money market funds $ 1,341,064 $ 1,341,064 $ $ $ N/A
Certificates of deposit 50,061 - 50,061 N/A
Bonds:
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US treasury notes 137,812 137,812 N/A
GNMA 2,453,713 421,133 298,613 1,733,967 N/A
Municipal obligations 610,410 - 437,913 172,497 -
Corporate bonds 5,957,392 100,013 3,360,447 1,064,958 1,431,974
$ 10,550,452 $ 1,441,077 $ 4,269,554 $1,536,068 $3,303,753
Other Investments:
Corporate equities 9,702,398
Mutual funds—equity 10,231,771
Total other investments 19,934,169
Total fiduciary fund investments 30,484,621
Total City
Investments $ 33,335,140
* -The Standard and Poor's credit ratings range from BBB+to AA- and Moody's credit ratings range from
Baa2 to Aa2 for the Municipal obligations.
** - The Standard and Poor's credit ratings range from BBB- to AAA and Moody's credit ratings range
from Baa3 to Aa2 for the Corporate bonds.
Credit Risk
The City's investment policy limits credit risk by restricting authorized investments to those described
above. Also the policy requires that investments held are to be diversified to the extent practicable to
control the risk of loss resulting from over concentration of assets in a specific maturity, issue, instrument,
dealer or bank through which financial instruments are bought and sold.
Custodial Credit Risk
The City's investment policy pursuant to Section 218.415(18), Florida Statutes requires securities, with
the exception of certificates of deposits, shall be held with a third party custodian; and all securities
purchased by, and all collateral obtained by the City should be properly designated as an asset of the
City. The securities must be held in an account separate and apart from the assets of the financial
institution. A third party custodian is defined as any bank depository chartered by the Federal
Government, the State of Florida, or any other state or territory of the United States which has a branch
or principal place of business in the State of Florida, or by a national association organized and existing
under the laws of the United States which is authorized to accept and execute trusts and which is doing
business in the State of Florida. Certificates of deposits will be placed in the provider's safekeeping
department for the term of the deposit.
As of September 30, 2014, the City's investment portfolio was held with a third-party custodian as
required by the City's investment policy. The City's investment policy requires that time deposit
investments be made only with banking institutions that are members of the State of Florida collateral
pool. Florida Statutes authorize, and the state administers, a collateral pool that ensures no loss of public
funds.
Concentration of Credit Risk
The City's investment policy requires diversification, but does not specify limits on types of investments.
C. Receivables:
Receivables as of year-end including the applicable allowances for uncollectible accounts are as follows:
Capital Nonmajor
Governmental Funds General Projects Funds Total
Receivables:
Accounts $ 472,616 $ - $ 15 $ 472,631
Intergovernmental 476,109 28,638 5 504,752
Gross receivables 948,725 28,638 20 977,383
Less:allowance for uncollectible (76,371) - - (76,371)
Net total receivables $ 872,354 $ 28,638 $ 20 $ 901,012
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Water/ Stormwater Internal
Proprietary Funds Sewer Utility Refuse Utility Utility Service Total
Receivables:
Accounts $ 1,543,296 $ 507,480 $ 236,855 $ 6,058 $ 2,293,689
Intergovernmental 301,360 - - - 301,360
Special Assessments 125,357 - - - 125,357
Gross receivables 1,970,013 507,480 236,855 6,058 2,720,406
Less:allowance for uncollectible (465,238) (145,620) (67,378) - (678,236)
Net total receivables $ 1,504,775 $ 361,860 $ 169,477 $ 6,058 $ 2,042,170
Governmental funds report deferred inflows in connection with receivables for revenues that are not
considered to be available to liquidate liabilities in the current period. No deferred inflows are reported as
of September 30, 2014. Governmental funds also defer revenue recognition and report unearned revenue
in connection with resources that have been received, but not yet earned. At the end of the fiscal year,
unearned revenue, in the amount of $62,664, reported in the major and non-major governmental funds
was deferred business tax receipts. Such amounts have also been included as current liabilities on the
government-wide financial statements.
D. Interfund Receivables, Payables, and Transfers:
The composition of Interfund balances as of September 30, 2014 is as follows:
Transfers In
Capital Internal Service Internal Service
General Fund Projects MIS WC Total
Transfers Out:
General Fund $ $ 309,056 $ $ $ 309,056
Recreation Impact 61,272 61,272
Transportation Impact 8,943 8,943
Enterprise:
Water Sewer 483,234 - 6,250 489,484
Refuse 140,143 6,250 146,393
Stormwater 75,520 6,250 81,770
Internal Service:
Fleet - 25,000 25,000
Fully Insured - - - 59,671 59,671
Total $ 698,897 $ 379,271 $ 43,750 $ 59,671 $ 1,181,589
Transfers are used to 1) move revenues from the fund with collection authorization to the fund that statute
or budget requires expending them and, 2) move unrestricted fund revenues to finance various programs
that the government must account for in other funds in accordance with budgetary authorizations.
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E. Capital Assets:
Capital asset activity for the year ended September 30,2014,was as follows:
Governmental activities:
Beginning Balance Increases Decreases Ending Balance
Capital assets not being depreciated:
Land $ 23,094,577 $ 10 $ - $ 23,094,587
Construction in progress 1,575,536 583,214 (178,667) 1,980,083
Total assets not being depreciated 24,670,113 583,224 (178,667) 25,074,670
Capital assets being depreciated:
Buildings 6,996,035 - (2,720) 6,993,315
Improvement other than buildings 19,179,767 - 19,179,767
Machinery and equipment 4,026,863 281,715 (147,268) 4,161,310
Infrastructure 56,359,796 74,728 56,434,524
Total assets being depreciated 86,562,461 356,443 (149,988) 86,768,916
Less accumulated depreciation for:
Buildings (2,652,929) (236,276) 2,720 (2,886,485)
Improvement other than buildings (10,312,950) (628,849) - (10,941,799)
Machinery and equipment (2,871,363) (317,163) 147,268 (3,041,258)
Infrastructure (50,447,127) (2,259,473) - (52,706,600)
Total accumulated depreciation (66,284,369) (3,441,761) 149,988 (69,576,142)
Total capital assets, being depreciated, net 20,278,092 (3,085,318) - 17,192,774
Governmental activities capital assets,net $ 44,948,205 $ (2,502,094) $ (178,667) $ 42,267,444
Business-type activities:
Beginning Balance Increases Decreases Ending Balance
Capital assets not being depreciated:
Land $ 1,235,467 $ - $ - $ 1,235,467
Construction in progress 6,512,578 1,370,907 (7,662,367) 221,118
Total assets not being depreciated 7,748,045 1,370,907 (7,662,367) 1,456,585
Capital assets being depreciated:
Buildings 24,565,769 - (179,000) 24,386,769
Improvement other than buildings 49,821,189 7,765,759 57,586,948
Machinery and equipment 11,267,184 516,770 (196,153) 11,587,801
Total assets being depreciated 85,654,142 8,282,529 (375,153) 93,561,518
Less accumulated depreciation for:
Buildings (15,048,090) (840,458) 92,110 (15,796,438)
Improvement other than buildings (18,984,663) (1,449,064) - (20,433,727)
Machinery and equipment (6,767,575) (740,172) 180,976 (7,326,771)
Total accumulated depreciation (40,800,328) (3,029,694) 273,086 (43,556,936)
Total capital assets, being depreciated, net 44,853,814 5,252,835 (102,067) 50,004,582
Business-type activities capital assets, net $ 52,601,859 $ 6,623,742 $ (7,764,434) $ 51,461,167
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Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 69,102
Public safety 350,037
Transportation/public works 2,783,424
Leisure services 215,446
Capital assets held by the City's internal service funds 23,751
are charged to the various functions based on their
usage of the assets
Total depreciation expense-governmental activities $3,441,760
Business-type activities:
Water Sewer Utility $ 2,544,890
Refuse collection 166,077
Stormwater System 318,727
Total depreciation expense-business-type activities $ 3,029,694
F. Leases:
Operating Leases — On March 3, 2014, the City entered into an operating lease agreement with the
Volusia/Flagler Family Young Men's Christian Association, Inc. (the "YMCA") for the leasing and
reimbursement for the expansion of, certain buildings and facilities located at Hawks Park Recreational
Complex, which may be renegotiated and renewed at the request of the City Council or the YMCA Board at
any time, provided any amendments are in writing and executed by both parties. Based on the terms of the
agreement, the initial ten year lease began on April 1, 2014 and is scheduled to expire on March 31, 2024,
with an option to renew for two additional ten year periods provided the parties mutually agree on the terms at
the time of renewal. Annual rentals under the lease agreement include minimum monthly payments of
$3,779. During the year ended September 30, 2014, amounts received totaled $22,693.
Capital Leases - The City has lease agreements for financing the acquisition of rescue and other vehicles.
These lease agreements qualify as capital leases for accounting purposes and, therefore, have been
recorded at the present value of their future minimum lease payments as of the inception date.
The assets acquired through capital leases are as follows:
Governmental
Activities
Assets-
Machinery and
equipment $ 366,069
Less: accumulated
depreciation (150,844)
Total $ 215,225
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The future minimum lease obligations and the net present value of these minimum lease payments as of
September 30, 2014 were as follows:
Year Ending Governmental
30-Sep Activities
2015 $ 68,807
2016 68,607
2017 68,607
2018 33,566
Total minimum lease payments 239,987
Less: amount representing
interest (13,144)
$ 226,843
G. Long-term Debt:
Revenue Bonds
The City issues bonds where the City pledges revenue derived from the acquired or constructed assets to
pay debt service. Revenue bonds have been issued for business-type activities. The original amount of the
revenue bonds issued and outstanding at year-end is as follows:
Balance
Interest Rates September 30,
Business-Type Activities and Dates Maturity Original Amount 2014
Water and Sewer
Revenue Refunding Bonds- 3.40%
Series 2009 (4/1 &10/1) 10/1/2016 $7,945,000 $5,675,000
Water and Sewer
Revenue Refunding Bonds- 2.18%
Series 2012 (4/1 &10/1) 10/1/2023 8,310,000 7,078,000
Total Revenue Bonds Outstanding $12,753,000
The Water and Sewer Revenue Bonds are secured by a first lien on and pledge of the net revenues of the
water and sewer system and a first lien on and pledge of allowable impact fees imposed on new users of the
system.
The Water and Sewer Revenue Bond resolution provides for:
(1) Establishment and maintenance of various funds and accounts
(2) Restrictions on the use of cash from operations in order of priority
(a) Deposits are made to the operations and maintenance fund each month in an amount
which will pay the costs of operation and maintenance for the next month;
(b) Deposits to the sinking fund are made monthly in an amount equal to one-sixth (1/6) of
the interest coming due on the next semi-annual interest payment date and one-twelfth
(1/12) of the bond amortization installment coming due during the next year:
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(c) Deposits to the reserve fund are required to make up any deficiency in its balance as
compared to the reserve equipment;
(d) Deposits to the Renewal and Replacement Fund are required each month in an amount
equal to one-twelfth (1/12) of five per centum (5%) of the gross revenues of the system
for the previous fiscal year; provided, however, that so long as there shall be on deposit
in the renewal and replacement fund a balance of at least five per centum (5%) of the
value of the fixed assets of the system, no additional deposits shall be required;
(e) Deposits will next be made into the rate stabilization fund for the amount budgeted for
the then current period; and
(f) Thereafter for any lawful purposes.
(3) Early redemption:
The bond resolution provides for early redemption of outstanding bonds at call rates varying from
100% to 102% of the instruments' face value, dependent upon the call date.
Annual requirements to amortize water and sewer revenue bonds outstanding as of September 30, 2014
are as follows:
Year Ending Business-Type Activities
September 30 Principal Interest
2015 $ 1,314,000 $ 332,793
2016 1,349,000 295,985
2017 5,093,000 195,099
2018 724,000 105,032
2019 740,000 89,162
2020-2024 3,533,000 195,350
Total $ 12,753,000 $ 1,213,421
The Water and Sewer Revenue Refunding Bonds, Series 2009 were issued on November 24, 2009, in
the amount of$7,945,000 to refund the City's outstanding Water and Sewer Revenue Bonds, Series 1991
and Water and Sewer Revenue Refunding Bonds, Series 1993. The bond will have semi-annual
payments due on April 1 and October 1. The stated interest rate on the refunding revenue bond is 3.40%
and maturity is on October 1, 2016. The new issue will reduce debt service payments for the City by
$3,340,233 with an economic gain of$1,082,825 or 11.719%.
The Water and Sewer Revenue Refunding Bonds, Series 2012 were issued on May 18, 2012, in the
amount of$8,310,000 to refund two of the City's outstanding State Revolving Fund Loans. The remaining
State Revolving Loans were paid off with surplus cash during the year. The new bond will have semi-
annual payments due on April 1 and October 1. The stated interest rate on the refunding revenue bond is
2.18% and maturity is on October 1, 2023.
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Notes Payable
The City issued the following revenue note in a prior year:
Guaranteed Entitlement
Revenue Note,Series 2010
Original amount issued $750,000
Issue date November 23,2010
Final maturity October 1, 2030
Interest due April 1 and Oct 1
Interest rate Fixed-2.77%
The note is pledged by State Revenue Sharing monies received by the City and the proceeds were used to
construct fire station, number 55.
Debt service requirements for this revenue note using interest rate of 2.77% at September 30, 2014 are:
Year Ending Governmental Activities
September 30 Principal Interest
2015 $ 30,000 $ 18.699
2016 35,000 17,846
2017 35,000 16,829
2018 35,000 15,860
2019 35,000 14,890
2020-2024 195,000 58,862
2025-2029 225,000 29,451
2030-2031 100,000 2,774
Total $ 690,000 $ 175,211
During 2006, the City signed a limited general obligation note payable for $500,000 to fund the construction
of a new animal shelter. The note is secured by a limited pledge of ad valorem taxes. While the note is
outstanding, the City will levy ad valorem taxes, not to exceed .06 mills to pay principal and interest on the
note. Annual debt service requirements are as follows:
Year Ending Governmental Activities
September 30 Principal Interest
2015 $ 20,000 $ 12,881
2016 20,000 12,112
2017 25,000 11,343
2018 25,000 10,381
2019 25,000 9,420
2020-2024 150,000 31,529
2025-2026 70,000 4,037
Total $ 335,000 $ 91,703
During the year ended September 30, 2013, the City executed an agreement with the Florida Department of
Environmental Protection to borrow up to $6,438,083 at an interest rate of 1.72-1.84% through the State
Revolving Fund loan program, for the purpose of wastewater treatment replacement and renewal. Capitalized
interest added to the loan as of September 30, 2014 was $89,773. Repayment commences on December
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15, 2014, is due semiannually thereafter on June 15 and December 15, each year until all amounts due
under the agreement have been fully paid. Current debt service requirements are as follows:
Year Ending Business-Type Activities
September 30 Principal Interest
2015 $ 151,857 $ 101,822
2016 272,905 112,239
2017 277,920 106,049
2018 283,027 100,942
2019 288,299 95,740
2020-2024 1,522,571 397,274
2025-2029 1,667,714 252,131
2030-2034 1,826,622 93,152
Total $ 6,290,915 $ 1,259,349
During the year ended September 30, 2013, the City executed an agreement with a financial institution to
borrow $4,507,000 at an interest rate of 1.79%, for the purpose of refinancing the capital lease with Johnson
Controls, Inc. for water meters. Principal and interest payments are due quarterly on December 1, March 1,
June 1 and September 1. The note is secured by non-ad valorem revenues of the City. Debt service
requirements are as follows:
Year Ending Business-Type Activities
September 30 Principal Interest
2015 $ 533,000 $ 62,787
2016 576,000 52,917
2017 622,000 42,266
2018 657,000 30,832
2019-2021 1,302,000 26,852
Total $ 3,690,000 $ 215,654
During the year ended September 30, 2014, the City executed an agreement with a financial institution to
borrow $1,300,000 at an interest rate of 2.41%, for the purpose of capital improvements. Interest only
payments are due on September 1St, while interest and principal payments are due on March 1St. Debt
service requirements are as follows:
Year Ending Business-Type Activities Governmental Activities
September 30 Principal Interest Principal Interest
2015 $ 67,673 $ 17,621 $ 47,327 $ 12,323
2016 70,615 15,955 49,385 11,158
2017 72,381 14,230 50,619 9,953
2018 72,969 12,481 51,031 8,728
2019 74,735 10,700 52,265 7,483
2020-2024 406,627 24,911 284,373 17,421
Total $ 765,000 $ 95,898 $ 535,000 $ 67,066
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Changes in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2014 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities:
Notes payable
Guaranteed Entitlement Note,Series
2010 $ 690,000 $ $ - $ 690,000 $ 30,000
FIND Note 337,019 (337,019) - -
General Obligation note 355,000 - (20,000) 335,000 20,000
Capital Improvement Revenue Note - 535,000 535,000 47,327
Capital leases
Ambulance 127,334 - (29,899) 97,435 31,153
Vehicles 160,583 - (31,174) 129,409 31,638
Other post-employment benefits 371,909 65,883 437,792 -
Compensated absences 1,583,593 1,020,549 (1,040,614) 1,563,528 912,349
Total governmental activities long term
liabilities $3,625,438 $1,621,432 $ (1,458,706) $ 3,788,164 $ 1,072,467
Business-type Activities
Bonds payable
Revenue Bonds $14,026,000 $ - $ (1,273,000) $ 12,753,000 $ 1,314,000
Notes payable
State revolving loan 4,403,042 1,887,873 6,290,915 151,857
Lease refunding note 4,183,000 - (493,000) 3,690,000 533,000
Capital Improvement note - 765,000 765,000 67,673
Other post-employment benefits 189,180 34,025 223,205 -
Compensated absences 658,808 481,792 (431,143) 709,457 481,793
Total business-type activities long term
debt $23,460,030 $3,168,690 $ (2,197,143) $ 24,431,577 $2,548,323
Internal service funds predominately serve the governmental funds. Accordingly, $55,797 of
compensated absences and $15,858 of Net OPEB liability are included in the above governmental
activities amounts. Also, for the governmental activities, compensated absences and the net pension
obligation are generally liquidated by the General Fund.
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H. Other Commitments and Contingencies
The City has entered into several agreements that are outstanding at September 30, 2014, which will
result in future financial obligation as follows:
Description Amount
General Fund commitments $ 291,301
Capital Projects Fund commitments 1,121,710
MIS Fund commitments 74,625
Water and Sewer Utility Fund commitments 96,237
Refuse Utility Fund commitments 7,300
Stormwater Utility Fund commitments 8,914
$ 1,600,087
V. Other Matters
A. Risk Management:
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; and natural disasters for which the City carries commercial insurance. During 2014,
there were no significant reductions in insurance coverage from the previous year or any settlements in
excess of insurance coverage in the current year or the prior three years.
B. Other Postemployment Benefits:
Plan Description and Summary of Benefits - The City provides retirees with the option to purchase
health insurance from the City's single employer, experience rated health insurance plan (Plan) that
provides medical benefits to active and eligible retirees at the City's group rate as mandated by Florida
Statute 112.0801. This requirement creates an implicit rate subsidy benefit for the retirees' participation.
Retirees are required to pay the full amount of the health insurance premium during their eligibility period.
As of the valuation dated October 1, 2013, the Plan had approximately 170 active participants, 3 spouses,
and 5 retirees receiving benefits. The plan does not issue a separate publicly available financial report.
Transition Year - GASB Statement No. 45 was implemented prospectively resulting in a zero net OPEB
obligation at transition, which was October 1, 2008. There was neither an OPEB asset nor liability at
transition.
Funding Policy - The City has followed the pay-as-you-go funding policy, contributing only those
amounts necessary to provide for its portion of current year benefit costs and expenses plus any addition
to the reserve for accrued costs incurred but not yet reported, as determined as part of the insurance
contract. The contribution requirements of Plan members are established annually by the City. The City
pays any remaining required amounts after contributions of plan members are taken into account.
Currently, retired members pay the full premium associated with the coverage elected; no direct City
subsidy is applicable; however there is an implicit cost outlined below. Spouses and other dependents are
also eligible for coverage, and the member is responsible for payment of the applicable premiums.
State of Florida law prohibits the City from separately rating retirees and active employees. The City
therefore assigns both groups equal, blended-rate premiums. Although both groups are assigned the
same blended rate premiums, GAAP requires actuarial liabilities to be calculated using age-adjusted
premiums approximating claim costs for retirees separate from active members. The use of age-adjusted
premiums results in the full expected retiree obligation recognized in this disclosure.
47
Annual OPEB Cost and Net OPEB Obligation - The City's annual other postemployment benefit cost
(expense) is calculated based on the annual required contribution of the employer (ARC). The City has
elected to calculate the ARC and related information using the Entry Age Normal actuarial cost method.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal
costs each year and to amortize any unfunded actuarial liability (or funding excess) using a level
percentage of payroll method and closed amortization over a period not to exceed 30 years. Annual
requirements include a 4.5% discount rate, compounded annually, and based on assumptions that the
plan will be unfunded. The annual health care cost trend rate was assumed to decline gradually over the
next several years from 7.5% in 2014 to an ultimate rate of 4.5% on and after 2017. The economic rates
are based on an assumed inflation rate of 3% per annum.
The actuarial accrued liability (AAL) was determined as of September 30, 2014, based on the above
assumptions and cost method, and applied to member data current at October 1, 2013. Liabilities were
developed based on age adjusted costs for retirees currently receiving plan benefits as of October 1,
2013, with an AAL calculated to be $1,849,238, which is unfunded (or 0% funded). The annual covered
payroll is $7.2 million, resulting in a ratio of unfunded AAL to covered payroll of 25.8%. The actuarial
calculations reflect a long-term perspective using methods and assumptions that are designed to reduce
short-term volatility in AAL and actuarial value of assets. The Plan provisions affecting the valuation were
those in effect on October 1, 2013.
OPEB GASB No. 45 results are not based on the assumption that all members terminate services as of
the valuation date, but rather on assumptions of future mortality, retirement, and termination.
2014
Fiscal Year
Valuation as
of 10/1/2013
Annual Required Contribution (ARC) $ 226,496
Interest on Net OPEB Obligation 25,250
Adjustment to ARC (24,942)
Annual OPEB Cost (Expense) 226,804
Less: Employer Contributions Made (126,896)
Increase in Net OPEB Obligation 99,908
Net OPEB Obligation at beginning of year 561,090
Net OPEB Obligation at end of year $ 660,998
In the Statement of Net Position, as of September 30, 2014, the City reports a Net OPEB obligation of
$437,793 in governmental activities and $223,205 in business-type activities.
The schedule of funding progress, presented as required supplementary information following the notes
to the financial statements, presents multi-year trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for the past three years was as follows:
Annual Percentage of Net
Year Ended OPEB City Annual OPEB OPEB
September 30, Cost Contributions Cost Contributed Obligation
2014 $ 226,804 $ 126,896 56.0% $ 660,998
2013 $ 217,722 $ 117,354 53.9% $ 561,090
2012 $ 195,528 $ 80,788 41.3% $ 460,722
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C. Employee Defined Benefit Retirement Pension Plans:
The City maintains three separate single-employer, defined benefit pension plans for general employees,
police officers and firefighters, which are maintained as Pension Trust Funds and included as part of the
City's reporting entity. These pension plans do not issue stand-alone financial reports. These plans also
provide for disability and survivor benefits.
Separate boards of trustees independently govern each system. Assets may not be transferred from one
plan to another or used for any purpose other than to benefit each system's participants as defined in
their authorizing ordinances. Administrative expenses and fees attributable to each plan are deducted
from the plan assets. These funds are reported using the full accrual basis of accounting. The benefits
and refunds of each defined benefit plan are recognized when due and payable in accordance with the
terms of the plan.
Investments are reported at fair value. Short-term investments are reported at cost, which approximates
fair value. Securities traded on a national or international exchange are valued at the last reported sales
price at current exchange rates. Investments that do not have an established market are reported at
estimated fair value.
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
General Employees' Pension Fund includes all full-time City employees, except police, firefighters and
the City Manager. The board of trustees consists of five members as follows: two legal residents of the
City, two current or retired members of the plan, and one member who is a union representative for the
General Employees.
The funding methods and determination of benefits payable are provided by various acts of the City
Council, including subsequent amendments thereto. The code provides, in general, that funds are to be
accumulated from City and active member contributions, and income from investment of accumulated
funds. Investments are reported at fair value.
Employees become eligible for the plan after three months of continuous employment with vesting
beginning as of the first day of employment. Active members are required to contribute 2.5% of salary to
the plan. The City's policy is to contribute amounts as determined by actuarial valuations. Employees
vest for full benefits after five years of service. Benefit amounts are calculated based on the three
consecutive years which give the highest average out of the last ten years. Members will receive a benefit
amount equal to 2% of that average multiplied by years of accrued service.
The General Employees' Pension Fund was amended in October 1996, which closed off the plan to any
new employees hired by the City after October 1, 1996. Employees hired after October 1, 1996, however,
are eligible for the City's 401(a) Defined Contribution Plan. Employees hired prior to October 1, 1996, and
not vested in the General Employees' Pension Fund as of September 30, 1997, may elect to participate in
the 401(a) Defined Contribution Plan.
With the October 1, 2013 valuation the Board of Trustees adopted changes to years of service, and the
benefit limitation. Starting for the year ending September 30, 2014, funding requirements are now based
on a dollar funding methodology as compared to the percentage of payroll methodology. For the year
ended September 30, 2014, the total required contribution from the City was $766,179.
49
Police Officers' Retirement Trust Fund - The Police Officers' Retirement Trust Fund is a single
employer defined benefit retirement system established pursuant with Chapter 185, Florida Statutes. The
funding methods and determination of benefits payable are provided in the various acts of the Florida
Legislature, the Board of Trustees, and the City Council. The statutes provide, in general, that funds are
to be accumulated from employee contributions, City contributions, state appropriations and income from
investment of accumulated funds. The City funds actuarial deficiencies, as determined by the state. The
investments of the fund are administered, managed and operated by its Board of Trustees. Investments
are reported at fair value. The board of trustees consists of five members as follows: two legal residents
of the City, two police officers of the City, and one member chosen by a majority of the previous four
members.
Full-time police officers are eligible to participate in the Police Officers' Retirement Trust Fund on the first
of the month following the completion of three months of continuous service with vesting beginning upon
their first day of employment with the City. Participating police employees contribute 6% of their salary to
the plan. The City is required by statute to contribute remaining amounts necessary based upon actuarial
valuations to the fund as performed in accordance with State Statute. Employees vest for full benefits
after five years of service. Benefit amounts are calculated based on the three years which give the
highest average out of the last five years. Members will receive a benefit amount equal to 2% of that
average multiplied by years of actual service up to October 1, 1987, and 3% of that average multiplied by
years of actual service after October 1, 1987.
Firefighters' Pension Fund - The Firefighters' Pension Fund is a single employer defined benefit
retirement system established pursuant with Chapter 175, Florida Statutes in July 1990, with an effective
date of November 1989. The funding methods and determination of benefits payable are provided in the
various acts of the Florida Legislature, Firefighters' Pension Board and the City Council. The statutes
provide in general, that funds are to be accumulated from employee contributions, City contributions,
state appropriations and income from investment of accumulated funds. Investments are reported at fair
value. The board of trustees consists of five members as follows: two legal residents of the City, two
full-time firefighters of the City, and one member chosen by a majority of the previous four members.
Full-time firefighters are eligible to participate in the Firefighters' Pension Fund upon their first day of
employment with the City. Participating fire employees contribute 6% of their salary to the plan. The City
is required by statute to contribute remaining amounts necessary based upon actuarial valuations to the
fund as performed in accordance with State Statute. Employees vest for full benefits after five years of
service. Benefit amounts are calculated based on the five years, which give the highest average out of
the last ten years. Members will receive a benefit amount equal to 3% of that average multiplied by years
of accrual service.
Current membership in the Employees' Pension Plans is comprised of the following as of the latest
actuarial valuation report:
General Police Fire
Group Employees Officers' Fighters'
Retirees and beneficiaries currently receiving benefits and terminated
employees entitled to benefits but not yet receiving them (vested) 108 33 6
Actively employed participants 11 23 26
Totals 119 56 32
Funding Policy - The City has traditionally contributed the annual required contribution (ARC) and thus
had never been required to report a net pension obligation (NPO). The State of Florida Department of
Management Services, Division of Retirement has required the City of Edgewater to change their
contribution method to a fixed percentage of actual payroll. In accordance with GASB Statement No. 27,
Accounting for Pensions by State and Local Government Employers, the total NPA at year end was
$356,322. The Net Pension Assets (NPA) is the cumulative net contribution in excess of the annual
required contribution, is presented as an asset on the City's entity-wide Statement of Net Position. In
accordance with GAAP, the City recorded the approved state police and firefighter pension contribution
from insurance premium payments and excise tax in the amount of $280,769 as an intergovernmental
revenue and pension contribution expense in the General Fund.
50
At September 30, 2014 the Police Officers plan has $359,310 of accumulated funding in the Funding
Standard Account, as determined by the actuary. The Funding Standard Account balance can be utilized
in future years to reduce the City's contributions into the Police Officers Retirement Trust Fund. In
addition, for the year ended September 30, 2014 the City did not utilize the Funding Standard Account to
meet the Annual Required Contribution.
The schedule of funding progress, presented as RSI following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets are increasing or
decreasing overtime relative to the actuarial accrued liability for benefits.
As of September 30, 2014, the amounts legally required to be reserved for the general, police and
firefighter pension funds are $12,534,303, $8,076,363, and $9,919,161, respectively.
Annual Pension Cost and Annual Pension Obligation - The annual pension cost, net pension
obligation and required contribution for September 30, 2013, were determined as part of the latest
actuarial valuation of each plan, using the respective actuarial cost method for each plan. The City's
annual pension cost and net pension obligation based on the most recent actuarial valuation were as
follows:
General Police
Employees' Officers' Firefighters'
Pension Fund Pension Fund Pension Fund
Annual Required Contribution(ARC) $ 475,794 $ 874,513 $ 534,041
Interest on Net Pension Obligation(NPO) 1 (17,738) (8,429)
Adjustment to ARC (1) 21,580 12,466
Annual Pension Cost 475,793 878,355 538,078
City and State Contributions Made 475,793 889,822 534,041
Increase/(Decrease)in NPO - (11,467) 4,037
NPO(NPA)beginning of year (236,501) (112,391)
NPO(NPA)end of year $ $ (247,968) $ (108,354)
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Three Year Trend Information:
General Employee's Pension
Annual
Pension Percentage
Cost of APC Net Pension
Fiscal Year Ending (APC) Contributed Obligation
September 30,2013 475,793 100%
September 30,2012 484,340 100%
September 30, 2011 443,258 100%
Police Officers' Pension
Annual
Pension Percentage
Cost of APC Net Pension
Fiscal Year Ending (APC) Contributed Obligation
September 30,2013 878,355 101.30% (247,968)
September 30,2012 787,116 75.40% (236,501)
September 30,2011 701,166 86.50% (430,115)
Firefighters'Pension
Annual
Pension Percentage
Cost of APC Net Pension
Fiscal Year Ending (APC) Contributed Obligation
September 30, 2013 538,078 99.20% (108,354)
September 30,2012 455,352 98.10% (112,391)
September 30,2011 362,093 98.20% (116,578)
As of October 1, 2013, the most recent actuarial valuation date, the General Employees' plan was 64.88
percent funded. The actuarial accrued liability for benefits was $17,101,109, and the actuarial value of
assets was $11,095,862, resulting in an unfunded actuarial accrued liability (UAAL) of $6,005,247. The
covered payroll (annual payroll of active employees covered by the plan) was $550,178 and the ratio of
the UAAL to the covered payroll was 1,091.51 percent.
As of October 1, 2013, the most recent actuarial valuation date, the Police Officers' plan was 59.20
percent funded. The actuarial accrued liability for benefits was $11,771,068 and the actuarial value of
assets was $6,968,226 resulting in an unfunded actuarial accrued liability (UAAL) of $4,802,842. The
covered payroll (annual payroll of active employees covered by the plan) was $1,159,490 and the ratio of
the UAAL to the covered payroll was 414.22 percent.
As of October 1, 2013, the most recent actuarial valuation date, the Firefighters' plan was 90.69 percent
funded. The actuarial accrued liability for benefits was $8,618,577, and the actuarial value of assets was
$7,816,177, resulting in an unfunded actuarial accrued liability (UAAL) of $802,400. The covered payroll
(annual payroll of active employees covered by the plan) was $1,502,209, and the ratio of the UAAL to
the covered payroll was 53.41 percent.
52
Description of Plan Benefits-All Plans
The benefit provisions and all other requirements of the employees' pension retirement systems are
established by Chapter 13 of the City's Code of Ordinances and comply with all applicable Florida State
Statutes. Notable points of the plans are summarized below. The Florida Constitution requires local
governments to make the actuarially determined contribution. The Florida Division of Retirement reviews
and approves each local government's actuarial report prior to it being appropriated for funding purposes.
The funding methods and determination of benefits payable are provided in various acts of the Florida
Legislature, which created the funds including subsequent amendments thereto.
Actuarial methods and significant assumptions
General Employees Police Officers Firefighters
Valuation date 10/1/2013 10/1/2013 10/1/2013
Actuarial cost method Aggregate Entry Age Normal Entry age Normal
Amortization method N/A Level Dollar Level%of pay,Closed
Remaining amortization period N/A 20 years 21 years
Asset valuation method 4-year smoothed market 4-year smoothed market 4-year smoothed market
Actuarial assumptions:
Investment rate of return 7.5% 7.5% 7.5%
Projected salary increases" 5.5% 4.2-7.5% 7.5%
"Includes inflation at 3.0% 3.0% 3.0%
Cost-of-living adjustments None None None
Individual Fiduciary Fund Statements
Individual statements of net position for the three plans included in the City of Edgewater fiduciary funds
are as follows:
CITY OF EDGEWATER,FLORIDA
Combining Statement of Fiduciary Net Position
Pension Trust Funds
September 30,2014
General
Employees Police Officers Firefighters
ASSETS
Investments,at fair value:
Accrued income $ 43,111 $ 32,105 $ 12,560
Investments,at fair value
Money market funds 455,485 343,105 542,474
Certificates of deposit - - 50,061
Bonds 3,942,029 2,737,893 2,479,405
Equities - 2,840,457 6,861,941
Mutual fund—equities 8,101,432 2,130,339 -
Total assets 12,542,057 8,083,899 9,946,441
LIABILITIES
Accounts payable 3,804 7,536 2,562
Unearned Contributions 3,950 - 24,718
NET POSITION
Held in trust for pension benefits $ 12,534,303 $ 8,076,363 $ 9,919,161
53
CITY OF EDGEWATER,FLORIDA
Combining Statement of Changes in Fiduciary Net Position
Pension Trust Funds
For the fiscal year ended September 30,2014
General
Employees Police Officers Firefighters
ADDITIONS
Contributions:
Employer $ 762,229 $ 539,470 $355,608
Employee 13,178 76,054 88,024
State of Florida - 125,387 155,382
Total contributions 775,407 740,911 599,014
Investment earnings:
Interest and dividends 485,595 200,816 155,935
Net increase/(decrease)in the fair value of investments 582,117 587,347 1,070,849
Less investment expenses (5,939) (5,400) (6,882)
Net investment earnings 1,061,773 782,763 1,219,902
Total Additions 1,837,180 1,523,674 1,818,916
DEDUCTIONS
Pension benefits 1,288,586 776,041 222,096
Administrative expenses 44,683 53,366 103,762
Total deductions 1,333,269 829,407 325,858
Change in net position 503,911 694,267 1,493,058
Net position-beginning of year 12,030,392 7,382,096 8,426,103
Net position-end of Year $ 12,534,303 $ 8,076,363 $ 9,919,161
Net Pension Liability
The components of the net pension liability of the pension plans at September 30, 2014, were as follows:
General
Employees Police Officers Firefighters
Total pension liability $ 17,101,117 $ 11,638,599 $ 8,481,797
Plan fiduciary net position (12,030,936) (7,401,395) (8,418,701)
Net pension liability $ 5,070,181 $ 4,237,204 $ 63,096
Plan fiduciary net position as percentage of total pension
liability 70.35% 63.59% 99.26%
The total pension liability was determined by an actuarial valuation as of October 1, 2013 updated to
September 30, 2014 using the following actuarial assumptions to all measurement periods.
General
Employees Police Officers Firefighters
Inflation 3.00% 3.00% 3.00%
Salary increases 4.00% 6.40% 5.90%
Investment rate of return 7.50% 7.50% 7.50%
54
Mortality rates for the General Employees Pension were based on the RP-2000 Combined Healthy
projected to the valuation date with schedule AA—Sex Distinct. The actuarial assumptions used in the
October 1, 2013 valuation were based on results of an actuarial experience study for the period 2003-
2012.
Mortality rates for the Police Officers were based on the RP-2000 Combined Healthy Mortality, projected
to 2005 using scale AA. Based on a study of over 650 public safety funds, the RP-2000 table (with no
projection) reflects a 10% margin for future mortality improvements.
Mortality rates for the Firefighters were based on the RP-2000 Combined Healthy Mortality Table, Sex
Distinct. Disabled lives are set forward five years. Based on a study of over 650 public safety funds, the
RP-2000 table (with no projection) reflects a 10% margin for future mortality improvements. Based on a
study of over 650 public safety funds, this table reflects a % margin for future mortality improvements.
Disability mortality is set forward five years.
The actuarial assumptions used in the October 1, 2013 Police and Firefighters valuations were based on
results of an actuarial experience study for the period 1990-2012.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expenses and inflation) are developed for each major asset class. These ranges
are combined to produce the long term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major class included in the pension plan's target
asset allocation as of September 30, 2013 are summarized in the following table:
Long Term Expected Real Rate of Return
General
Asset Class Employees Police Officers Firefighters
Domestic equity 7.50% 7.50% 7.50%
International equity 8.50% 8.50% 8.50%
Broad Market Fixed income 2.50% 2.50% 2.50%
TIPS 2.50% 2.50% -
Real estate 4.50% 4.50%
Discount rate:
The discount rate used to measure the total pension liability for each pension plan was 7.50%. The
projection of cash flows used to determine the discount rate assumed the plan member contributions will
be made at the current contribution rate and that City contributions will be made as rates equal to the
difference between actuarially determined contribution rates and the member rate. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
Sensitivity of the net pension liability to changes in the discount rate:
The following presents the net pension liability of the City calculated using the discount rate of 7.50%, as
well as what the City's net pension liability would be if it were calculated using a discount rate that is 1%
lower(6.50%) or 1% higher (8.50%)than the current rate:
55
Current Discount
1% Decrease Rate 1% Increase
City's Net Pension Liability 6.50% 7.50% 8.50%
General Employees Retirement Trust Fund $ 6,770,058 $ 5,070,181 $ 3,623,711
Police Officers Retirement Trust Fund 5,548,382 4,237,204 3,143,995
Firefighters Retirement Trust Fund 1,154,197 63,096 (840,241)
For the year ended September 30, 2013, the annual-money weighted rate of return on each pension plan
investments, net of pension plan investment expense was as follows:
General
Employees Police Officers Firefighters
Retirement Retirement Retirement
Trust Fund Trust Fund Trust Fund
Annual money-weighted rate of return 13.50% 10.40% 10.25%
The money-weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amounts actually invested.
D. Employee Defined Contribution Retirement Pension Plans:
General Employees- The City adopted a defined contribution plan effective October 1, 1996. The plan is
a money purchase plan administered for the City by the Salem Trust. Eligible employees are employees
hired effective October 1, 1996, or thereafter that would otherwise qualify for the General Employees'
Pension Plan. Employees hired prior to October 1, 1996, and not vested in the General Employees'
Pension Plan may also elect, instead, to participate in the defined contribution plan. Employee
participation is immediate upon hiring and are 100% vested after five years of employment. Employees
direct the investment of funds contributed to the plan on their behalf. Employer contributions made during
the year amounted to $488,085. The City Council has the authority to amend the Plan's provisions
including amending contribution requirements.
E. Deferred Compensation Plans:
The City offers its employees a choice of two deferred compensation plans created in accordance with
Internal Revenue Code Section 457; i.e., International City/County Management Association (ICMA). The
plans are available to all City employees and permit employees to defer a portion of their salary until
future years. Participation in either of the plans is optional. Deferred compensation withdrawals are not
available to employees until termination, retirement, death, or an unforeseeable emergency. In
accordance with current professional pronouncements, the City has not included such funds in its
financial statements.
F. Joint Venture
Communications Interlocal Agency.
On January 11, 2002, the cities of New Smyrna Beach, Port Orange and Edgewater entered into an
interlocal agreement to provide a consolidated dispatch communications and records system servicing
law enforcement, fire, rescue and emergency communications for each of the cities. This entity, known as
the Communications Interlocal Agency (CIA), was established pursuant to Florida Statutes, Section
163.01(7). The CI Agency operates as a public entity using the same fiscal year as the City of New
Smyrna Beach, ending on September 30th.
The CI Agency is an instrumentality of the municipal parties and is entitled to sovereign immunity, except
where waived by general law. It operates pursuant to direction from its governing board. The governing
board is comprised of three mayors from the respective cities mentioned above. Operating guidelines,
procedures, designations and restrictions are determined by this governing body.
56
Substantially all costs of the Cl Agency are allocated to Port Orange, New Smyrna Beach, and Edgewater
in the respective amounts of 44%, 33%, and 23%. The books and records are maintained using
accounting principles generally accepted in the United States of America. The City of Port Orange, as
agent, performs all cash and accounting transactions.
The financial statements of the joint venture can be obtained by contacting the Finance Director of the
City of Port Orange, Florida, at the following address:
Tracey Riehm, Finance Director
City of Port Orange
1000 City Center Circle
Port Orange, FL 32129
Summarized audited information of the Communications Interlocal Agency for the year ended September
30, 2014 is as follows:
Operating revenues $ -
Operating expenses (54,809)
Non-operating revenues 2,267
Net loss $ (52,542)
Total assets $ 307,290
Total liabilities $ -
Total net position $ 307,290
A summary of the changes in the City's investment in the Communications Interlocal Agency for the year
ended September 30, 2014 is as follows:
September 30, 2012, balance $ 242,278
Fiscal year 2013 activity (79,069)
September 30, 2013, balance $ 163,209
Effective September 30, 2011, the CIA was dissolved as the County of Volusia, Florida voted to go to a
centralized dispatch service for the entire County. The CIA is still determining the dissolution of assets
between the three cities, and the remaining assets are expected to be distributed during the year ended
September 30, 2015.
G. Contingencies:
The City has been involved in miscellaneous collections, lot cleaning, stormwater, and other liens. In
addition, the City has numerous pending/threatened claims against it. In the opinion of City management
the loss if any, resulting from these actions will not have a material adverse effect on the financial
condition of the City.
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may
be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if
any, to be immaterial.
57
H. Restatement of Net Position:
In March 2012, the Government Accounting Standards Board (GASB) issued GASB Statement No. 65,
Items Previously Reported as Assets and Liabilities. GASB 65 clarifies the appropriate reporting of
deferred outflows of resources and deferred inflows of resources to ensure consistency in financial
reporting. GASB Concepts Statement (CON) No. 4, Elements of Financial Statements, specifies that
recognition of deferred outflows and deferred inflows should be limited to those instances specifically
identified in authoritative GASB pronouncements. Consequently, guidance was needed to determine
which balances being reported as assets and liabilities should actually be reported as deferred outflows of
resources or deferred inflows of resources, according to the definitions in CON 4. Based on those
definitions, GASB 65 reclassifies certain items currently being reported as assets and liabilities as
deferred outflows of resources and deferred inflows of resources. In addition, GASB 65 recognizes
certain items currently being reported as assets and liabilities as outflows of resources and inflows of
resources. The requirements of GASB 65 are effective for fiscal year 2014 and have been implemented
as of and for the year ended September 30, 2014. The implementation GASB 65 will result in the removal
of unamortized bond issuance costs as of September 30, 2013, and result in the reduction of beginning
unrestricted net position in the government-wide statement of net position by the same amount. The
effect of the restatement on the impacted reporting units' beginning net position is as follows:
Business-
Water and type
Sewer Activities
Balance, 9/30/2013 $ 28,477,555 $ 37,299,772
Less: Bond issuance costs, net,
9/30/2013 (90,461) (90,461)
Restated balance, 9/30/2013 $ 28,387,094 $ 37,209,311
I. Subsequent Events:
On March 2, 2015, the City Council authorized the creation of the Edgewater Community Redevelopment
Agency with Ordinance 2015-0-04.
On January 5, 2015, the City Council authorized the issuance of $600,000 capital improvement debt for
the acquisition of land for the Public Works complex with Resolution 2015-R-05.
On November 13, 2014, a City contractor drilled through a City power line and now owes the City
approximately $200,000 in damages.
J. Recently Issued Pronouncements:
The Governmental Accounting Standards Board ("GASB") has issued several pronouncements that have
effective dates that may impact future financial statements. Listed below are pronouncements with
required implementation dates effective for subsequent fiscal years that have not yet been implemented.
Management has not currently determined what, if any, impact implementation of the following will have
on the City's financial statements:
(a) GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions, in June 2012,
which replaces the requirements of GASB Statement No. 27, Accounting for Pensions by State and
Local Governmental Employers, and GASB 50, as they relate to governments that provide pensions
through pension plans administered as trusts or similar arrangements that meet certain criteria.
GASB 68 requires governments providing defined benefit pensions to recognize their long-term
58
obligation for pension benefits as a liability for the first time, and to more comprehensively and
comparably measure the annual costs of pension benefits. GASB 68 also enhances accountability
and transparency through revised and new note disclosures and required supplementary information.
The provisions in GASB 68 are effective for fiscal years beginning after June 15, 2014 and will result
in the net pension liability being recorded on the City's statement of net position.
(b) GASB issued Statement No. 69, Government Combinations and Disposals of Government
Operations, in January 2013. GASB 69 is intended to improve accounting and financial reporting for
U.S state and local government combinations and disposals of government operations. Government
combinations include mergers, acquisitions, and transfers of operations. A disposal of government
operations can occur through a transfer to another government or sale. The requirements of GASB
69 are effective for periods beginning after December 15, 2013, and should be applied on a
prospective basis.
(c) GASB issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the
Measurement Date, in November 2013. GASB 71 seeks to improve accounting and financial
reporting by addressing an issue in GASB 68 concerning transaction provisions related to certain
pension contributions made to defined benefit pension plans prior to implementation of GASB 68 by
employers and nonemployer contributing entities. The provisions in GASB 68 are effective for fiscal
years beginning after June 15, 2014
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59
CITY OF EDGEWATER, FLORIDA
Required Supplementary Information(unaudited)
Schedules of Funding Progress
Other Post Employment Benefit Plan
Unfunded or Unfunded or
Actuarial Actuarial Actuarial (Assets in (Assets in Excess of)
Valuation Value of Accrued Liability Excess of) Funded Covered AAL as a Percentage
Date Assets (AAL)--Entry Age AAL Ratio Payroll of Covered Payroll
(a) (b) (b-a) (alb) (c) ((b-a)/c)
10/1/2012 $ $ 1,849,238 $ 1,849,238 0.00% $ 7,177,127 25.8%
10/2/2010 1,676,652 1,676,652 0.00% 5,765,693 29.1%
10/1/2008 3,009,113 3,009,113 0.00% 6,080,589 49.5%
General Employees'Retirement Trust
Unfunded or Unfunded or
Actuarial Actuarial Actuarial (Assets in (Assets in Excess of)
Valuation Value of Accrued Liability Excess of) Funded Covered AAL as a Percentage
Date Assets (AAL)--Entry Age AAL Ratio Payroll of Covered Payroll
(a) (b) (b-a) (alb) (c) ((b-a)/c)
10/1/2013 $ 11,095,862 $ 17,101,109 $ 6,005,247 64.88% $ 550,178 1091.51%
10/1/2012 10,795,757 17,138,842 6,343,085 62.99% 580,324 1093.02%
10/1/2011 12,227,558 17,289,981 5,062,423 70.72% 1,017,953 497.31%
10/1/2010 13,310,777 17,088,869 3,778,092 77.89% 1,077,877 350.51%
10/1/2009 13,876,405 16,842,925 2,966,520 82.39% 1,204,161 246.36%
10/1/2008 14,472,525 16,636,744 2,164,219 86.99% 1,254,441 172.52%
Police Officers'Pension Trust
Actuarial Unfunded or Unfunded or
Actuarial Actuarial Accrued Liability (Assets in (Assets in Excess of)
Valuation Value of (AAL)--Frozen Excess of) Funded Covered AAL as a Percentage
Date Assets Entry Age AAL Ratio Payroll of Covered Payroll
(a) (b) (b-a) (a/b) (c) ((b-a)/c)
10/1/2013 $ 6,968,226 $ 11,771,068 $ 4,802,842 59.20% $ 1,159,490 414.22%
10/1/2012 6,132,725 11,153,497 5,020,772 54.98% 1,117,545 449.27%
10/1/2011 5,828,463 11,013,027 5,184,564 52.92% 972,222 533.27%
10/1/2010 7,801,777 8,944,282 1,142,505 87.23% 1,063,774 107.40%
10/1/2009 7,980,169 9,081,117 1,100,948 87.88% 1,105,895 99.55%
10/1/2008 8,040,328 9,229,229 1,188,901 87.12% 1,032,166 115.19%
Firefighters'Pension Trust
Unfunded or Unfunded or
Actuarial Actuarial Actuarial (Assets in (Assets in Excess of)
Valuation Value of Accrued Liability Excess of) Funded Covered AAL as a Percentage
Date Assets (AAL)--Entry Age AAL Ratio Payroll of Covered Payroll
(a) (b) (b-a) (alb) (c) ((b-a)/c)
10/1/2013 $ 7,816,177 $ 8,618,577 $ 802,400 90.69% $ 1,502,209 53.41%
10/1/2012 6,776,342 8,068,598 1,292,256 83.98% 1,528,795 84.53%
10/1/2011 5,513,147 7,319,117 1,805,970 75.33% 1,439,711 125.44%
10/1/2010 5,315,976 6,499,389 1,183,413 81.79% 1,475,291 80.22%
10/1/2009 4,977,603 5,652,885 675,282 88.05% 1,475,963 45.75%
10/1/2008 4,700,591 4,813,031 112,440 97.66% 1,556,068 7.23%
60
CITY OF EDGEWATER, FLORIDA
Required Supplementary Information (unaudited)
Schedules of Contributions from the Employer and Other Contributing Entities
Other Post Employment Benefit Plan
Annual
Year Ended Required City Percentage
Sept 30, Contribution City Contribution Contribution
2014 $ 226,496 $ 126,896 56.0%
2013 217,079 117,354 54.1%
2012 194,676 80,788 41.5%
2011 187,837 72,926 38.8%
2010 236,130 116,928 49.5%
2009 225,651 114,752 50.9%
General Employees'Retirement Trust
Annual
Year Ended Required City Percentage
Sept 30, Contribution City Contribution Contribution
2014 $ 762,229 $ 762,229 100%
2013 484,341 484,341 100%
2012 484,341 484,341 100%
2011 443,259 443,259 100%
2010 358,255 358,255 100%
2009 746,270 746,270 100%
Police Officers'Pension Trust
Annual
Year Ended Required City City State Percentage
Sept 30, Contribution Contribution Contribution` Contribution
2014 664,857 539,470 125,387 100.00%
2013 874,513 768,448 121,375 101.75%
2012 762,743 1 471,463 122,039 77.81%
2011 673,391 2 547,752 125,639 100.00%
2010 600,715 3 475,560 125,156 100.00%
2009 474,810 407,647 131,228 113.49%
1)Includes$169,241 from the Funding Standard Accunt to meet
the annual required City contribution.
2)Includes$66,954 from the Funding Standard Account to meet
the annual required City contribution.
3)Includes$117,184 from the Funding Standard Account to meet
the annual required City contribution.
Firefighters'Pension Trust
Annual
Year Ended Required City City State Percentage
Sept 30, Contribution Contribution Contribution` Contribution
2014 $ 510,990 $ 355,608 $ 155,382 100.00%
2013 534,041 469,302 64,740 100.00%
2012 451,165 388,329 62,836 100.00%
2011 355,689 288,744 66,946 100.00%
2010 354,059 287,113 66,946 100.00%
2009 292,806 254,858 66,946 109.90%
Frozen pursuant to Chapter 175 or 185, Florida Statutes
61
CITY OF EDGEWATER, FLORIDA
Required Supplementary Information (unaudited)
Schedules of Investment Returns
Asset Valuation
Date Annual Money-Weighted Rate of Return
Year Ended General
Employees' Police Officers' Firefighters'
Sept 30, Retirement Trust Pension Trust Pension Trust
2013 13.50% 10.40% 10.25%
Information relating to this schedule is not available prior to fiscal years ended September 30,2013.
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62
CITY OF EDGEWATER, FLORIDA
Nonmajor Governmental Funds
September 30, 2014
SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other
earmarked revenue sources (other than for major capital projects) that are restricted by law or
administrative action to expenditures for specified purposes.
Justice Assistance Grant Fund—This fund was established to receive revenues derived from
money received from the Department of Justice for the Victims Of Crime Act grant for the Victim
Advocate salaries and benefits.
Special Law Enforcement Trust Fund—This fund was established to receive revenues derived
from confiscated property obtained during the enforcement purposes, exclusive of salaries and
vehicles. Such purposes may include drug education programs such as DARE.
Transportation Impact Fees Fund—This fund was established to account for road impact fees
collected from new developments constructed in the City.
Police Impact fees Fund —This fund was established to account for police impact fees collected
from new developments constructed in the City.
Fire Impact Fees Fund —This fund was established to account for fire impact fees collected from
new developments constructed in the City.
Recreation Impact Fees Fund—This fund was established to account for recreation impact fees
collected from new developments constructed in the City.
DEBT SERVICE FUNDS are established to account for the accumulation of resources for, and the
payment of, general long-term debt principal and interest.
Debt Service Fund—This fund was established to account for the payment of general long-term
debt principal and interest for the Station 55 replacement and Animal Shelter.
CAPITAL PROJECTS FUNDS are established to account for resources used for the acquisition and
construction of capital facilities by the City, except for those financed by proprietary funds.
Capital Projects Fund —This fund was established to account for the acquisition of fixed assets
or construction of major capital projects not being financed by proprietary funds.
63
CITY OF EDGEWATER, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30,2014
Special Revenue
Justice
Assistance Transportation
Grants SLETF Impact Police Impact
ASSETS
Cash $ 2,749 $ 1,818 $ 338,346 $ 71,299
Receivables-net - - 11 3
Due from other governments - - - -
Total assets $ 2,749 $ 1,818 $ 338,357 $ 71,302
FUND BALANCES
Spendable:
Restricted for:
Public safety 2,749 1,818
Debt service - - - -
Capital projects - - 338,357 71,302
Total fund balances 2,749 1,818 338,357 71,302
Total liabilities and fund balance $ 2,749 $ 1,818 $ 338,357 $ 71,302
64
Total Nonmajor
Recreation Governmental
Fire Impact Impact Debt Service Funds
$ 27,437 $ 9,882 $ 2,612 $ 454,143
1 - - 15
5 5
$ 27,438 $ 9,882 $ 2,617 $ 454,163
- - 4,567
- - 2,617 2,617
27,438 9,882 - 446,979
27,438 9,882 2,617 454,163
$ 27,438 $ 9,882 $ 2,617 $ 454,163
65
CITY OF EDGEWATER, FLORIDA
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended September 30,2014
Special Revenue
Justice
Assistance Transportation
Grants SLETF Impact Police Impact
REVENUES
Taxes:
Property $ - $ $ $
Intergovernmental 3,355
Fines and forfeitures - 6,395 -
Investment earnings 2 158 46
Impact fees - - 63,973 5,702
Total revenues 3,355 6,397 64,131 5,748
EXPENDITURES
Current:
Public safety 3,355 10,284 3,000
Debt Service:
Principal - - -
Interest -
Capital outlay - - 80,082
Total expenditures 3,355 10,284 - 83,082
Excess(deficiency)of revenues
over(under)expenditures - (3,887) 64,131 (77,334)
OTHER FINANCING SOURCES(USES)
Transfers out (8,943)
Total other financing sources(uses) (8,943)
Net change in fund balances - (3,887) 55,188 (77,334)
Beginning fund balances 2,749 5,705 283,169 148,636
Ending fund balances(deficit) $ 2,749 $ 1,818 $ 338,357 $ 71,302
66
Total Nonmajor
Recreation Governmental
Fire Impact Impact Debt Service Funds
$ $ $ 34,532 $ 34,532
- 3,355
6,395
10 17 8 241
10,199 22,231 102,105
10,209 22,248 34,540 146,628
- - - 16,639
20,000 20,000
13,650 13,650
- 80,082
- - 33,650 130,371
10,209 22,248 890 16,257
- (61,272) - (70,215)
- (61,272) (70,215)
10,209 (39,024) 890 (53,958)
17,229 48,906 1,727 508,121
$ 27,438 $ 9,882 $ 2,617 $ 454,163
67
CITY OF EDGEWATER, FLORIDA
Schedule of Revenues, Expenditures,and
Changes in Fund Balances--Budget and Actual
Annually- Budgeted Nonmajor Special Revenue Funds
For the Fiscal Year Ended September 30,2014
Special Revenue
Justice Assistance Grants SLETF
Budgeted Amounts Variance Budgeted Amounts Variance
with Final with Final
Budget- Budget-
Actual Positive Actual Positive
Original Final Amounts (Negative) Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 3,000 $ 3,355 $ 3,355 $ $ - $ - $ - $
Fines and forfeitures - - - 3,000 6,395 6,395
Investment earnings - - 2 2
Impact fees - - - - - -
Total revenues 3,000 3,355 3,355 3,000 6,395 6,397 2
EXPENDITURES
Current:
Public Safety 3,000 3,355 3,355 18,000 12,100 10,284 1,816
Capital outlay - - - - - - -
Total expenditures 3,000 3,355 3,355 18,000 12,100 10,284 1,816
Excess(deficiency)of revenues
over(under)expenditures - - - (15,000) (5,705) (3,887) 1,818
OTHER FINANCING SOURCES(USES)
Transfers out -
Total other financing sources(uses)
Net change in fund balances - - - (15,000) (5,705) (3,887) 1,818
Beginning fund balances 2,749 2,749 2,749 5,705 5,705 5,705 -
Ending fund balances(deficit) $ 2,749 $ 2,749 $ 2,749 $ $ (9,295) $ - $ 1,818 $ 1,818
68
CITY OF EDGEWATER, FLORIDA
Schedule of Revenues, Expenditures,and
Changes in Fund Balances--Budget and Actual--
Annually-Budgeted Nonmajor Special Revenue Funds(continued)
For the Fiscal Year Ended September 30,2014
Special Revenue
Transportation Impact Police Impact
Budgeted Amounts Variance Budgeted Amounts Variance
with Final with Final
Budget- Budget-
Actual Positive Actual Positive
Original Final Amounts (Negative) Original Final Amounts (Negative)
REVENUES
Intergovernmental $ $ $ $ $ $ $ $
Fines and forfeitures
Investment earnings 158 158 46 46
Impact fees 20,500 64,500 63,973 (527) 2,500 5,880 5,702 (178)
Total revenues 20,500 64,500 64,131 (369) 2,500 5,880 5,748 (132)
EXPENDITURES
Current:
Public Safety - - - - - 3,380 3,000 380
Capital outlay 85,727 85,727 80,082 5,645
Total expenditures - - - - 85,727 89,107 83,082 6,025
Excess(deficiency)of revenues
over(under)expenditures 20,500 64,500 64,131 (369) (83,227) (83,227) (77,334) 5,893
OTHER FINANCING SOURCES(USES)
Transfers out - (35,770) (8,943) 26,827 -
Total other financing sources(uses) (35,770) (8,943) 26,827
Net change in fund balances 20,500 28,730 55,188 26,458 (83,227) (83,227) (77,334) 5,893
Beginning fund balances 283,169 283,169 283,169 - 148,636 148,636 148,636 -
Ending fund balances(deficit) $ 303,669 $ 311,899 $ 338,357 $ 26,458 $ 65,409 $ 65,409 $ 71,302 $ 5,893
69
CITY OF EDGEWATER, FLORIDA
Schedule of Revenues, Expenditures,and
Changes in Fund Balances--Budget and Actual--
Annually-Budgeted Nonmajor Special Revenue Funds(continued)
For the Fiscal Year Ended September 30,2014
Special Revenue
Fire Impact Recreation Impact
Budgeted Amounts Variance Budgeted Amounts Variance
with Final with Final
Budget- Budget-
Actual Positive Actual Positive
Original Final Amounts (Negative) Original Final Amounts (Negative)
REVENUES
Intergovernmental $ $ $ $ $ $ $ $
Fines and forfeitures
Investment earnings 10 10 17 17
Impact fees 5,000 10,199 10,199 10,000 21,154 22,231 1,077
Total revenues 5,000 10,199 10,209 10 10,000 21,154 22,248 1,094
EXPENDITURES
Current:
Public Safety - - - - - - -
Capital outlay
Total expenditures - - - - - - -
Excess(deficiency)of revenues
over(under)expenditures 5,000 10,199 10,209 10 10,000 21,154 22,248 1,094
OTHER FINANCING SOURCES(USES)
Transfers out - - - (25,000) (61,272) (61,272) -
Total other financing sources(uses) (25,000) (61,272) (61,272)
Net change in fund balances 5,000 10,199 10,209 10 (15,000) (40,118) (39,024) 1,094
Beginning fund balances 17,229 17,229 17,229 48,906 48,906 48,906 -
Ending fund balances(deficit) $ 22,229 $ 27,428 $ 27,438 $ 10 $ 33,906 $ 8,788 $ 9,882 $ 1,094
70
CITY OF EDGEWATER, FLORIDA
Schedule of Revenues, Expenditures,and
Changes in Fund Balances--Budget and Actual--
Annually-Budgeted Nonmajor Special Revenue Funds(continued)
For the Fiscal Year Ended September 30,2014
Total
Budgeted Amounts Variance with
Final Budget-
Positive
Actual (Negative)
Original Final Amounts
REVENUES
Intergovernmental $ 3,000 $ 3,355 $ 3,355 $
Fines and forfeitures 3,000 6,395 6,395
Investment earnings - - 233 233
Impact fees 38,000 101,733 102,105 372
Total revenues 44,000 111,483 112,088 605
EXPENDITURES
Current:
Public Safety 21,000 18,835 16,639 2,196
Capital outlay 85,727 85,727 80,082 5,645
Total expenditures 106,727 104,562 96,721 7,841
Excess(deficiency)of revenues
over(under)expenditures (62,727) 6,921 15,367 8,446
OTHER FINANCING SOURCES(USES)
Transfers out (25,000) (97,042) (70,215) 26,827
Total other financing sources(uses) (25,000) (97,042) (70,215) 26,827
Net change in fund balances (87,727) (90,121) (54,848) 35,273
Beginning fund balances 506,394 506,394 506,394 -
Ending fund balances(deficit) $ 418,667 $ 416,273 $ 451,546 $ 35,273
71
CITY OF EDGEWATER, FLORIDA
Schedule of Revenues, Expenditures, and
Changes in Fund Balances--Budget and Actual
Annually- Budgeted Nonmajor Debt Service Funds
For the Fiscal Year Ended September 30,2014
Variance with
Budgeted Amounts Final Budget-
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes:
Property $ 33,946 $ 33,946 $ 34,532 $ 586
Investment earnings - - 8 8
Total revenues 33,946 33,946 34,540 594
EXPENDITURES
Debt Service:
Principal 20,000 20,000 20,000 -
Interest 13,650 13,650 13,650
Total expenditures 33,650 33,650 33,650 -
Excess(deficiency)of revenues over(under)
expenditures 296 296 890 594
OTHER FINANCING SOURCES(USES)
Proceeds from issuance of debt 385,000 3,205 - (3,205)
Total other financing sources(uses) 385,000 3,205 (3,205)
Net change in fund balances 385,296 3,501 890 (2,611)
Beginning fund balances 1,727 1,727 1,727
Ending fund balances $ 387,023 $ 5,228 $ 2,617 $ (2,611)
72
CITY OF EDGEWATER, FLORIDA
Schedule of Revenues, Expenditures, and
Changes in Fund Balances--Budget and Actual
Annually- Budgeted Major Capital Projects Fund
For the Fiscal Year Ended September 30, 2014
General Construction
Budgeted Amounts Variance with
Final Budget-
Positive
Actual (Negative)
Original Final Amounts
REVENUES
Intergovernmental $ 341,545 $ 341,545 $ 336,659 $ (4,886)
Total revenues 341,545 341,545 336,659 (4,886)
EXPENDITURES
Capital outlay 720,601 747,643 412,234 335,409
Total expenditures 720,601 747,643 412,234 335,409
Excess(deficiency)of revenues
over(under)expenditures (379,056) (406,098) (75,575) 330,523
OTHER FINANCING SOURCES(USES)
Transfers in 379,056 406,098 379,271 (26,827)
Total other financing sources(uses) 379,056 406,098 379,271 (26,827)
Net change in fund balance - - 303,696 303,696
Beginning fund balances 141,110 141,110 141,110 -
Ending fund balances $ 141,110 $ 141,110 $ 444,806 $ 303,696
73
City of
IBIDGEWATER
Inc. 1951
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74
CITY OF EDGEWATER, FLORIDA
Internal Service Funds
September 30, 2014
INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to City
departments on a cost-reimbursement basis (including depreciation).
Management Information Systems (MIS)—To account for data processing operations and the
cost of computer services used by other City departments.
Fleet—To account for the cost of operating a maintenance facility for automotive equipment used
by other City departments /divisions.
Loss Fund—To account for the general liability and property insurances of the City.
Fully Insured —To account for the health, dental and life insurance of the City's employees and
retirees.
Workers Comp—To account for the workers compensation insurance of the City.
75
CITY OF EDGEWATER, FLORIDA
Combining Statement of Net Position
Internal Service Funds
September 30,2014
Loss Fully Workers
MIS FLEET Fund Insured Comp Total
ASSETS
Current assets:
Cash $ 103,613 $ 103,723 $ 15,010 $ 3,960 $ - $ 226,306
Receivables--net - - - - 6,058 6,058
Inventories 1,856 20,642 - 22,498
Total current assets 105,469 124,365 15,010 3,960 6,058 254,862
Noncurrent assets:
Capital assets:
Buildings and improvements 60,684 - - - - 60,684
Machinery and equipment 64,530 45,604 110,134
Construction in progress 24,875 - 24,875
Less accumulated depreciation (38,383) (33,172) (71,555)
Total capital assets(net of
accumulated depreciation) 111,706 12,432 124,138
Total noncurrent assets 111,706 12,432 - 124,138
Total assets 217,175 136,797 15,010 3,960 6,058 379,000
LIABILITIES
Current liabilities:
Accounts payable 3,724 3,443 - 165,726 - 172,893
Accrued liabilities 5,108 3,838 - 8,946
Compensated absences 10,292 13,555 23,847
Accrued interest payable 206 - 206
Notes payable-current 9,112 - 9,112
Total current liabilities 28,442 20,836 165,726 215,004
Noncurrent liabilities:
Compensated absences 14,519 17,431 - 31,950
OPEB obligation 7,845 8,013 15,858
Long-term debt payable after one year 93,888 - 93,888
Total noncurrent liabilities 116,252 25,444 141,696
Total liabilities 144,694 46,280 165,726 356,700
NET POSITION
Net investment in capital assets 8,706 12,432 - - - 21,138
Unrestricted 63,775 78,085 15,010 (161,766) 6,058 1,162
Total net position $ 72,481 $ 90,517 $ 15,010 $ (161,766) $ 6,058 $ 22,300
76
CITY OF EDGEWATER, FLORIDA
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position
Internal Service Funds
For the Fiscal Year Ended September 30,2014
Loss Fully Workers
MIS FLEET Fund Insured Comp Total
Operating revenues:
Billings to City departments $ 423,530 $ 996,169 $ 322,798 $ 1,989,037 $ 192,951 $ 3,924,485
Operating expenses:
Salaries and employee benefits 164,290 169,227 - 2,006,640 245,093 2,585,250
Supplies and materials 21,299 471,562 - - 492,861
Contract services 177,380 178 - 177,558
Other services and charges 74,080 304,157 322,468 700,705
Depreciation 18,283 5,468 - - - 23,751
Total operating expenses 455,332 950,592 322,468 2,006,640 245,093 3,980,125
Operating income(loss) (31,802) 45,577 330 (17,603) (52,142) (55,640)
Nonoperating revenues(expenses)
Gain on disposition of capital assets 7,503 - - 7,503
Interest expense (4,132) (4,132)
Total nonoperating revenues 3,371 3,371
Income(loss)before
contributions and transfers (28,431) 45,577 330 (17,603) (52,142) (52,269)
Transfers in 43,750 - - 59,671 103,421
Transfers out - (25,000) - (59,671) - (84,671)
Change in net position 15,319 20,577 330 (77,274) 7,529 (33,519)
Total net position-beginning 57,162 69,940 14,680 (84,492) (1,471) 55,819
Total net position-ending $ 72,481 $ 90,517 $ 15,010 $ (161,766) $ 6,058 $ 22,300
77
CITY OF EDGEWATER,FLORIDA
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended September 30,2014
Loss Fully Workers
MIS FLEET Fund Insured Comp Total
Cash flows from operating activities:
Receipts-customers and users $ 423,530 $ 996,169 $ 322,798 $ 1,989,037 $ 186,893 $ 3,918,427
Payments-suppliers (272,502) (773,018) (322,468) (2,011,192) (247,223) (3,626,403)
Payments-employees (179,255) (165,611) (344,866)
Net cash provided(used)by operating activities (28,227) 57,540 330 (22,155) (60,330) (52,842)
Cash flows from noncapital financing activities:
Cash received from(paid to)other funds 43,750 (25,000) - (59,671) 59,671 18,750
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (56,764) (1) - (56,765)
Proceeds from sale of capital assets 7,503 7,503
Interest payments on debt (4,132) (4,132)
Proceeds from issuance of debt 103,000 103,000
Net cash provided(used)by capital and related financing
activities 49,607 (1) - - 49,606
Net increase(decrease)in cash and cash equivalents 65,130 32,539 330 (81,826) (659) 15,514
Beginning cash and cash equivalents 38,483 71,184 14,680 85,786 659 210,792
Ending cash and cash equivalents $ 103,613 $ 103,723 $ 15,010 $ 3,960 $ - $ 226,306
Reconciliation of operating income(loss)to net cash provided
(used)by operating activities:
Operating income(loss) $ (31,802) $ 45,577 $ 330 $ (17,603) $ (52,142) $ (55,640)
Adjustments to reconcile operating income(loss)to net cash
provided(used)by operating activities:
Depreciation and amortization 18,283 5,468 - 23,751
(Increase)decrease in assets:
Receivables-net - - (6,058) (6,058)
Inventories (1,856) (281) (2,137)
Increase(decrease)in liabilities:
Accounts payable 2,113 3,160 (4,552) (2,130) (1,409)
Accrued liabilities (1,291) (2,561) (3,852)
OPEB obligation 1,682 1,402 3,084
Compensated absences (15,356) 4,775 (10,581)
Total adjustments 3,575 11,963 (4,552) (8,188) 2,798
Net cash provided(used)by operating activities $ (28,227) $ 57,540 $ 330 $ (22,155) $ (60,330) $ (52,842)
78
CITY OF EDGEWATER, FLORIDA
Other Supplemental Schedules
September 30, 2014
Fiduciary Funds— Pension trust Funds
Police, Firefighter and General Employees' Pension Funds — These funds are used to account for the
accumulation of resources to be used for retirement annuity payments at the appropriate amounts and
times in the future. Resources are contributed by employees at a rate fixed by law and by the City and
the State at amounts determined by an annual actuarial study.
79
CITY OF EDGEWATER, FLORIDA
Combining Statement of Fiduciary Net Position
Pension Trust Funds
September 30,2014
General
Employees Police Officers Firefighters Total
ASSETS
Accrued income $ 43,111 $ 32,105 $ 12,560 $ 87,776
Investments,at fair value:
Money market funds 455,485 343,105 542,474 1,341,064
Certificates of deposit - - 50,061 50,061
Bonds
US Treasury notes 19,681 29,522 88,609 137,812
GNMA/FNMA 1,335,155 904,821 213,737 2,453,713
Municipal bonds 206,552 199,993 203,865 610,410
Corporate bonds 2,380,641 1,603,557 1,973,194 5,957,392
Equities - 2,840,457 6,861,941 9,702,398
Mutual fund-equities 8,101,432 2,130,339 - 10,231,771
Total assets 12,542,057 8,083,899 9,946,441 30,572,397
LIABILITIES
Accounts payable 3,804 7,536 2,562 13,902
Unearned contributions 3,950 - 24,718 28,668
Total liabilities 7,754 7,536 27,280 42,570
NET POSITION
Held in trust for pension benefits $ 12,534,303 $ 8,076,363 $ 9,919,161 $ 30,529,827
80
CITY OF EDGEWATER, FLORIDA
Combining Statement of Changes in Fiduciary Net Position
Pension Trust Funds
For the Fiscal Year Ended September 30, 2014
General Police
Employees Officers Firefighters Total
ADDITIONS
Contributions:
Employer $ 762,229 $ 539,470 $ 355,608 $ 1,657,307
Employee 13,178 76,054 88,024 177,256
State of Florida - 125,387 155,382 280,769
Total contributions 775,407 740,911 599,014 2,115,332
Investment earnings(loss):
Interest and dividends 485,595 200,816 155,935 842,346
Net increase in the fair value of investments 582,117 587,347 1,070,849 2,240,313
Total investment earnings 1,067,712 788,163 1,226,784 3,082,659
Less investment expenses (5,939) (5,400) (6,882) (18,221)
Net investment earnings(loss) 1,061,773 782,763 1,219,902 3,064,438
Total Additions 1,837,180 1,523,674 1,818,916 5,179,770
DEDUCTIONS
Pension benefits 1,288,586 776,041 222,096 2,286,723
Administrative expenses 44,683 53,366 103,762 201,811
Total deductions 1,333,269 829,407 325,858 2,488,534
Change in net position 503,911 694,267 1,493,058 2,691,236
Net position-beginning 12,030,392 7,382,096 8,426,103 27,838,591
Net position-ending $ 12,534,303 $ 8,076,363 $ 9,919,161 $ 30,529,827
81
City of
IBIDGEWATER
Inc. 1951
This page intentionally left blank
82
CITY OF EDGEWATER, FLORIDA
Statistical Secton
This part of the City of Edgewater, Florida's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the City's overall financial health and is
unaudited.
Contents Page(s)
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time. 84-88
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax, and the municipal sales tax. 89-93
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in
the future.
Demographic and Economic Information
These schedules offer economic and demographic indicators to help the reader
understand the environment within which the City's financial activities take place. 100-101
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City's financial report relates to the services the City provides
and the activities it performs. 102-104
Sources: Unless otherwise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Report for the relevant fiscal year.
83
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88
CITY OF EDGEWATER, FLORIDA
Tax Revenues by Source of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended Utility and franchise Intergovernmental
September 30 Property Taxes taxes Revenue Total
2005 $ 4,125,604 $ 2,721,040 $ 3,032,676 $ 9,879,320
2006 5,045,677 3,098,230 3,302,877 11,446,784
2007 5,983,622 3,134,569 2,703,201 11,821,392
2008 6,053,935 2,822,644 2,353,662 11,230,241
2009 5,638,194 3,109,453 2,724,831 11,472,478
2010 5,083,616 3,076,195 2,436,438 10,596,249
2011 4,459,591 3,047,731 3,400,644 10,907,966
2012 3,669,228 2,947,266 3,758,487 10,374,981
2013 3,763,456 3,051,649 2,933,095 9,748,200
2014 4,120,260 3,182,716 2,812,565 10,115,541
89
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90
CITY OF EDGEWATER, FLORIDA
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
City of Debt Total Volusia
Fiscal Edgewater Service Direct County(') School District Grand
Year Operating Millage Millage Rate Millage Millage Other(2) Total
2005 6.4500 0.0000 6.4500 8.8820 8.5170 0.5910 24.4400
2006 6.4500 0.0600 6.5100 7.7210 8.2590 0.5910 23.0810
2007 5.7000 0.0317 5.7317 5.3235 7.6850 2.7886 21.5288
2008 5.2000 0.0271 5.2271 4.8819 7.4670 2.6866 20.2626
2009 5.9000 0.0330 5.9330 5.4037 7.4590 3.5865 22.3823
2010 6.3600 0.0382 6.3982 6.4233 8.2370 3.7932 24.8517
2011 6.5910 0.0475 6.6385 6.3025 8.2370 4.0012 25.1792
2012 6.4700 0.0604 6.5304 6.7791 8.0630 3.9682 25.3407
2013 6.5000 0.0612 6.5612 6.8809 7.8880 3.6967 25.0268
2014 6.8760 0.0580 6.9340 7.2709 7.3580 3.6028 25.1657
(1) Millage includes General Fund and Voter Approved Debt service
(2) Inlet and Port Authority, Florida Inland Navigation District and St. Johns River Water
Management District, Mosquito Control, and Hospital Operating
91
CITY OF EDGEWATER, FLORIDA
Principal Taxpayers
Current year and ten years ago
2014 2005
Real Percentage Real Percentage
Property of Total Property of Total
Assessed Assessed Assessed Assessed
Taxpayer Valuation Rank Valuation Valuation Rank Valuation
NS CS Hammock Creek, LLC $ 39,989,590 1 6.13%
Florida Power&Light Company 14,685,691 2 2.25% 10,839,554 1 1.07%
RJ Doughtery Associates Inc. 6,001,185 3 0.92%
Bright House Networks 3,583,026 4 0.55% 2,932,915 7 0.29%
Carder, James C TR 3,422,493 5 0.52%
Revenue Properties Florida 3,395,722 6 0.52%
3050 Holdings, LLC 3,390,162 7 0.52% 3,745,934 4 0.37%
Florida East Coast Railway Company 3,158,229 8 0.48%
Holly Investments, LTD 2,785,567 9 0.43%
Edgewater Power Boats, LLC 2,757,112 10 0.42%
308 Realty, LLC - - 4,785,181 2 0.47%
Spishores, LLC - - 4,142,507 3 0.41%
Bellsouth Telecommunications, Inc. - - 3,645,141 5 0.36%
Porta, Scott - - 3,143,132 6 0.31%
Bel Aire Investments, Inc - - 2,538,000 8 0.25%
Seaedge Partners, LLC - - 2,535,400 9 0.25%
Edgewater Harbor, LLC - - 2,462,769 10 0.24%
$ 83,168,777 12.74°/a $ 40,770,533 4.02%
Total Assessed Valuation $ 652,131,330 $ 1,009,447,000
Source:Volusia County Property Appraiser's Office &2005 City of Edgewater CAM
92
CITY OF EDGEWATER, FLORIDA
Property Tax Levies And Collections
Last Ten Fiscal Years
Percent of Percent of
Total Current Current Tax Delinquent Total Total Tax
Fiscal Tax Tax Collections Tax Tax Collections
Year Levy Collections To Tax Levy Collections Collections To Tax Levy
2005 $ 4,283,690 $ 4,115,041 96.06 % $ 5,140 $ 4,120,181 96.18 %
2006 5,243,485 5,040,537 96.13 % 17,219 5,057,756 96.46 %
2007 6,209,694 5,933,287 95.55 % 218,300 6,151,587 99.06 %
2008 6,219,068 5,835,665 93.84 % - 5,835,665 93.84 %
2009 5,822,971 5,611,299 96.36 % 26,895 5,638,194 96.83 %
2010 5,230,103 5,035,560 96.28 % 17,704 5,053,264 96.62 %
2011 4,515,489 4,343,936 96.20 % 83,812 4,427,748 98.06 %
2012 3,752,808 3,625,224 96.60 % 10,100 3,635,324 96.87 %
2013 3,836,165 3,558,179 92.75 % 170,189 3,728,368 97.19 %
2014 4,216,606 4,072,002 96.57 % 13,726 4,085,728 96.90 %
Source: Volusia County Property Appraiser and Tax Collector
93
CITY OF EDGEWATER, FLORIDA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Special General Capital
Fiscal Notes Assessment Obligation Improvement Capital Line Notes
Year Payable Notes Note Revenue Bonds Leases of Credit Payable
2005 $ 5,571,596 $3,954,514 $ - $ - $ 331,123 $ - $6,147,017
2006 4,811,939 3,244,502 470,000 - 357,544 - 5,239,457
2007 4,052,282 2,874,549 455,000 - 224,579 12,500 4,472,504
2008 3,292,112 2,106,625 440,000 - 181,415 50,000 3,541,000
2009 2,701,092 1,297,442 425,000 - 225,466 - 2,592,437
2010 2,110,073 - 410,000 - 388,424 - 1,542,000
2011 2,269,055 - 395,000 - 183,569 - 1,028,000
2012 1,424,037 - 375,000 - 156,029 - -
2013 1,027,019 - 355,000 - 287,916 - 4,142,717
2014 1,225,000 - 335,000 - 226,843 - 4,455,000
Note-1: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Note-2: Net of deferred amount refunding for FY2013 and prior years.
(1) See Demographic and Economic Statistics for personal income and population data.
94
Business-Type Activities
State Percentage
Capital Revolving Revenue Line of Personal Per
Leases Loan Bonds of Credit Total Income (1) Capita (1)
$6,544,290 $13,298,345 $ 11,011,773 $ - $ 46,858,658 7.81% 2,215
6,750,820 11,975,560 10,660,000 - 43,509,822 6.91% 2,017
6,391,335 10,604,143 10,215,000 37,500 39,339,392 6.00% 1,825
5,971,878 9,182,304 10,146,086 - 34,911,420 5.04% 1,604
5,548,388 8,137,963 9,679,987 - 30,607,775 5.70% 1,431
5,258,430 8,388,828 7,814,973 - 25,912,728 4.72% 1,233
4,881,594 8,582,920 7,331,611 - 24,671,749 5.70% 1,181
4,527,471 - 15,077,524 - 21,560,061 5.10% 1,038
- 4,403,042 13,946,595 - 24,162,289 5.45% 1,165
- 6,290,915 12,753,000 - 25,285,758 5.53% 1,219
95
CITY OF EDGEWATER, FLORIDA
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Percentage of Net
Estimated General Actual Taxable Bonded
Fiscal Actual Obligation Value of Debt Per
Year Population (1) Taxable Value Bonded Debt Property Capita
2005 21,156 $ 664,137,932 $ - - -
2006 21,572 812,943,450 470,000 0.058% 21.79
2007 21,558 1,089,419,939 455,000 0.042% 21.11
2008 21,770 1,195,974,542 440,000 0.037% 20.21
2009 21,394 981,617,652 425,000 0.043% 19.87
2010 21,017 822,343,254 410,000 0.050% 19.51
2011 20,885 688,838,957 395,000 0.057% 18.91
2012 20,775 580,032,073 375,000 0.065% 18.05
2013 20,737 590,466,100 355,000 0.060% 17.12
2014 20,748 613,235,365 335,000 0.055% 16.15
Source: Volusia County Property Appraiser and Tax Collector
(1) See Demographic and Economic Statistics for population data.
96
CITY OF EDGEWATER, FLORIDA
Direct and Overlapping Debt
Net General Percentage City of
Obligation Applicable to Edgewater
Debt the City of Share of
Governmental Unit Outstanding Edgewater Debt
Volusia County $ 23,025,000 2.54% $ 584,835
Volusia County School District - 0% -
Subtotal Overlapping Debt 23,025,000 2.54% 584,835
City Direct Debt 1,683,844 100% 1,683,844
Total Direct and Overlapping Debt $ 24,708,844 $ 2,268,679
Note: The county-wide debt amount is comprised of$23,025,000 of the County of Volusia's
Limited Tax general obligation bonds.
The County's debt is overlapping to the City's in relation to its taxable property value
compared to the County's as a whole. The City's general obligation debt is listed above and
is direct debt to the City and underlapping to the County.
Source: Volusia County
97
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98
CITY OF EDGEWATER, FLORIDA
Pledged-Revenue Coverage
Last Ten Fiscal Years
(dollars in thousands)
Water and Wastewater Refunding Revenue Bond, Series 2009
Less: Net
Fiscal Gross Operating Impact Available Debt Service
Year Revenues(l) Expenses(2) Fees Revenue Principal Interest Total Coverage
2010 $ 7,085,984 $ 4,863,198 $ 226,897 $ 2,449,683 $ - $ 95,296 $ 95,296 25.71
2011 7,474,168 4,372,447 70,550 3,172,271 505,000 261,545 766,545 4.14
2012 7,634,056 4,849,002 42,979 2,828,033 570,000 243,378 813,378 3.48
2013 8,238,099 5,140,343 61,907 3,159,663 585,000 223,635 808,635 3.91
2014 8,383,806 5,348,671 80,102 3,115,237 610,000 203,320 813,320 3.83
Water and Wastewater System Refunding Revenue Bond, Series 2012
Available Net
Fiscal Revenue& Debt Service
Year Impact Fees Principal Interest Total Coverage
2012 $ 2,014,655 $ - $ - $ - 0.00
2013 2,351,028 569,000 154,891 723,891 3.25
2014 2,301,917 663,000 165,179 828,179 2.78
Note: Detail regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) According to the Resolution, Gross Revenues should exclude interest earnings on the
Renewal and Replacement Fund and Construction Fund.
(2) Total direct operating expenses excludes depreciation,amortization and overhead
charges.
Required coverage of 1.05 refers to the Series 2009 Bonds.
99
CITY OF EDGEWATER, FLORIDA
Demographic and Economic Statistics
Last Ten Fiscal Years
Total Per Capita County
Calendar Personal Personal Median Unemployment School
Year Population(1) Income Income(2) Age(3) Rate(4) Enrollment (5)
2004 20,637 $ 538,997,166 $ 26,118 43.6 5.0% 2,179
2005 21,156 575,675,916 27,211 43.7 3.4% 2,191
2006 21,572 611,501,484 28,347 43.8 3.1% 2,203
2007 21,558 535,586,952 24,844 45.4 3.4% 2,166
2008 21,997 561,319,446 25,518 46.0 7.2% 2,180
2009 21,394 536,989,400 25,100 46.3 11.8% 2,188
2010 21,017 549,153,193 26,129 46.1 12.6% 2,144
2011 20,885 432,528,350 20,710 46.4 10.3% 1,900
2012 20,775 423,020,550 20,362 47.5 8.8% 1,895
2013 20,737 443,418,346 21,765 47.9 6.8% 1,933
2014 20,748 457,057,692 22,029 46.6 5.9% 1,388
2014 Sources:
(1)Source:University of Florida,Bureau of Economic and Business Research,10/15/2014
(2)US Census Bureau,2011 -2013 3-Year American Community Survey Estimates
(3)Volusia County Statistics
(4)Bureau of Labor Statistics Data
(5)Received from Schools Directly as of 9-30-14(Includes Discovery Academy(elementary),Indian River Elementary,and Edgewater Public Elementary)
Footnote:
Daytona State College South Campus Total Enrollment=700;671 live in Edgewater. DSC total staff 59(16 staff&43 faculty)
NSB High School Total Enrollment=1,843;838 live in Edgewater.Total Staff=157(113 teachers)
NSB Middle School Total Enrollment=1,176;550 live in Edgewater.Total Staff 107
Edgewater Public Elementary Total Enrollment=612/Staff=55
Indian River Elementary Total Enrollment= 648/staff=80
Discovery Academy Total Enrollment=128/Staff=13
100
CITY OF EDGEWATER, FLORIDA
Principal Employers
Current Year and Ten Years Ago
2014 2005
Percentage Percentage
Number of of Total County Number of of Total County
Employer (1)(2) Employees Employment Employees Employment
City of Edgewater 198.5 0.08%
Everglades Boats by Dougherty 189.0 0.08%
Publix Supermarkets 142.0 0.06%
Winn Dixie Supermarkets 119.0 0.05%
Edgewater Power Boats 105.0 0.04%
Brunswick Commercial&Government Products 97.0 0.04%
Indian River Elementary 80.0 0.03%
Edgewater Family YMCA of S.E.Volusia 57.0 0.02%
Edgewater Elementary 55.0 0.02%
Dustin's BBQ 32.0 0.02%
Total 1,074.5 0.44%
Total County Employment(3) 244,863
Sources:
(1)Information provided by each company
(2)Information not available for 2005
(3)Bureau of Labor Statistics Data
101
CITY OF EDGEWATER, FLORIDA
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
Fiscal Year
Function/program 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
General Government:
Mayor and Commission 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
City Manager 2.0 2.0 2.0 2.0 2.0 2.0 1.0 2.0 3.0 3.0
City Clerk 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Support Departments
Finance 10.5 9.5 9.5 6.5 6.5 7.0 8.0 9.0 10.0 10.0
IT/MIS/GIS 3.0 2.0 2.0 2.0 2.0 2.0 2.0 0.0 0.0 0.0
Economic Development 1.0
Human Resources 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 3.0 2.0
Community Development
Planning and Zoning 2.0 2.0 2.0 3.0 3.0 3.0 3.0 4.0 3.0 3.0
Building 4.0 3.5 3.5 3.5 3.5 3.5 4.0 4.0 6.0 5.0
Public Safety:
Police Department 34.5 35.0 33.5 33.0 34.0 33.5 36.0 33.0 40.0 37.0
Fire Department 29.5 29.5 29.0 30.0 30.0 31.0 32.0 35.0 38.0 28.0
Animal Control/Shelter 1.0 2.0 2.0 5.0 4.0 4.0 5.0 2.0 3.0 2.0
Code Enforcement 2.0 2.0 2.0 1.0 3.0 3.0 3.0 2.0 3.0 4.0
Water Resources
Water Utility 11.0 11.0 9.0 10.0 10.0 10.0 10.0 9.0 10.0 10.0
Wastewater Utility 16.0 15.0 14.0 15.0 15.0 15.0 15.0 16.0 11.0 11.0
Field Operations 11.0 11.0 10.0 9.0 10.0 10.0 9.0 10.0 5.0 13.0
Stormwater 9.5 9.5 9.0 8.0 7.0 6.0 8.0 9.0 10.0 5.0
Refuse 26.0 26.0 24.0 23.0 23.0 23.0 24.0 27.0 28.0 22.0
Parks and Recreation 15.0 15.0 15.0 15.0 16.0 16.0 16.0 12.0 20.0 14.0
Fleet 3.0 3.0 3.0 3.0 2.0 2.0 3.0 0.0 0.0 0.0
Public Works 8.5 9.0 7.0 7.0 7.0 8.0 0.0 0.0 0.0 7.0
Totals: 198.5 196.0 185.5 185.0 187.0 188.0 188.0 183.0 200.0 183.0
102
CITY OF EDGEWATER,FLORIDA
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year
Function/program 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
General Government
Employment Applications Received 665 541 543 401 339 625 763 392 275 298
Personnel Actions Processed 113 138 136 81 90 94 116 89 157 152
Accidents&Injuries Reviewed 51 60 52 29 40 51 45 30 18 20
Business Tax Receipts Issued 763 1,269 1,544 982 1,401 1,707 1,699 1,722 1,720 1,681
Checks Issued 2,279 2,414 1,727 1,727 983 2,947 3,253 3,682 4,883 4,243
Competitive Procurements(ITB,RFP,)issued 23
Purchase Orders Issued 718 757 734 408 449 766 1,000 1,124 1,962 1,975
Public Safety
Police Department
Accidents 367 239 246 328 259 250 257 281 254 341
Traffic citations issued 3,450 3,188 5,245 5,958 4,780 5,514 3,419 6,528 6,000 6,319
Evidence Processed 2,153 1,803 1,800 2,130 2,027 1,582 1,703 2,197 2,203 2,153
Physical arrests 1,151 1,128 1,393 1,327 1,227 1,649 1,378 1,287 1,141 1,113
Calls for service 31,503 34,395 29,752 34,228 31,168 31,394 33,379 41,909 33,115 32,706
Fire Department
Emergency responses 2,565 2,738 2,679 2,825 2,873 2,841 2,991 3,035 3,069 2,922
Average response time-minutes 4.32 4.19 4.18 425 4.56 4.41 4.50 4.50 4.40 4.10
Public Education Programs 67 64 63 62 60 70 41 56 19 10
Fire inspections 1,123 1,015 1,002 920 810 807 860 867 171 168
Burn Permits Issued - - - - 1 - 5 - 4 8
Public Works
Miles of street paved 3 1 -
Miles of street Resurfaced 3 1 2 4 3 7
Miles of unpaved streets 4
Sidewalks-new construction-miles 1 1 1 14
Leisure Services
Ball games&field rentals 786 1,226 1,598 1,726 1,887 1,974 1,958 1,935 2,003
Events/Programs 8 17 19 14 19 21 23 26 11
Water Resources
Water main breaks 100 84 80 88 88 63 76 81 60 64
Average daily consumption-mgd 1.846 1.900 1929. 1.931 1.931 1.941 1.944 1.989 1.850 1.770
Number of water customers 10,632 10,603 10,580 10,542 10,542 10,504 10,487 10,467 10,387 10,164
New Connections 29 23 18 38 38 16 35 54 175 278
Sewer Resources
New Connections 27 19 11 26 26 8 30 42 162 261
Average daily consumption-mgd 1.422 1,264 1 1 1.179 1.324 1.523 1225 1.070 1.180
Number of customers 9,896 9,869 9,850 9,823 9,823 9,797 9,784 9,761 9,626 9,394
Refuse Collection
Number of Customers 9,463 9,451 9,403 9,378 9,378 9,356 9,326 9,272 9,205 8,977
Sources:Provided by the respective departments of the City of Edgewater
*Infornation not available.
103
CITY OF EDGEWATER,FLORIDA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
Function/program 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Police
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Vehicles 29 27 28 30 30 30 24 26 30 24
Patrol Zones 2 2 2 2 2 2 2 2 2 2
Fire
Fire Stations 2 2 2 2 2 2 2 2 2 2
Fire Vehicles 17 17 17 18 15 15 13 13 15 11
Public Works
Streets(miles) 124 124 124 124 124 124 124 124 124 123
Number of street lights 1,071 1,068 1,068 1,068 1,068 1,068 1,068 1,068 1,068 1,068
Number of traffic signals 3 3 3 3 3 3 3 3 3 3
Vehicles 8 9 8 5 5 5 5 5 5 4
Leisure Services
Vehicles 11 12 12 12 12 12 9 9 10 10
Parks Acreage 151 151 151 151 151 151 151 151 143 150
Parks 28 28 28 28 28 28 28 28 28 28
Baseball Fields 7 7 7 7 7 7 7 7 7 7
Tennis Courts 4 4 4 4 4 4 4 4 4 4
Basketball Courts 3 2 2 2 2 2 2 2 2 2
Racquetball Courts 4 4 4 4 4 4 4 4 4 4
Shuffleboard Courts 2 2 2 2 2 2 2 2 2 2
Boat Ramps 5
Paddling Trails Awaiting Designation
East Central Regional Rail Trail Awaiting Designation
Gymnasiums(YMCA) 1 1 1 1 1 1 1 1 1 1
Water Resources
Water mains(miles) 275 275 275 274 274 274 274 274 194 186
Fire hydrants 718 701 700 700 700 695 694 694 691 686
Vehicles 26 24 24 23 23 23 23 23 14 13
Sewer mains(miles) 189 189 189 189 189 189 189 189 189 180
Reclaim Water(miles) 72 72 71 71 71 71 71 71 71 71
Stormwater Utility
Storm Sewers(miles) 36 36 36 35 35 35 35 35 35 35
Retention Ponds
Vehicles 17 16 15 7 7 10 10 10 10 7
Solid Waste
Garbage Trucks 10 10 9 7 7 8 7 10 10 7
Other Vehicles 13 13 13 12 12 14 14 15 15 12
Sources:Provided by the respective departments of the City of Edgewater
104
CITY OF EDGEWATER, FLORIDA
Schedule of State Financial Assistance
For the Fiscal Year Ended September 30,2014
CSFA
State Agency/Pass-Through Entity/State Project Number Contract/Grant Number Expenditures
State Agency
Department of Environmental Protection
Direct
Wastewater Treatment Facility Construction 37.077 WW64052 $ 1,798,100
Total Department of Environmental Protection 1,798,100
Total State Financial Assistance $ 1,798,100
Notes:
1) The accompanying Schedule of State Financial Assistance includes state financial assistance activity of the City of Edgewater, Florida and
is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of
Chapter 10.550, Rules of the Florida Auditor General.
105
CITY OF EDGEWATER,FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS— STATE PROJECTS
FOR THE YEAR ENDED SEPTEMBER 30,2014
A. Summary of Auditors' Results:
Financial Statements:
• Type of audit report issued on the basic financial statements: Unmodified.
Internal control over financial reporting:
• There were two significant deficiencies related to internal control over financial reporting
disclosed by the audit of the basic financial statements, of which none were considered a
material weakness.
• The audit did not disclose any noncompliance, which was material to the basic financial
statements.
State Financial Assistance:
Internal control over major State projects:
• There were no significant deficiencies or material weaknesses related to internal control
over major State projects disclosed by the audit.
• Type of report issued on compliance for each major program: Unmodified.
• The audit did not disclose any audit findings, which are required to be reported under
Chapter 10.550, Rules of the Auditor General.
• Major project identification:
CFDA No. 37.077—Wastewater Treatment Facility Construction
• Dollar threshold used to distinguish between Type A and Type B programs was $300,000.
B. Financial Statement Findings
2014-01 Firetruck Prepaid Deposit
We noted the City made a significant deposit($422,018) for the purchase of a fire truck, which, as
of September 30, 2014, had not been delivered. The City initially recorded this transaction as a
capital outlay expenditure in the General Fund and Construction in Progress in the Governmental
Activities financial statements. The proper accounting treatment is to record a prepaid deposit in the
general fund and governmental activities financial statements. We recommend the City implement
controls to ensure all such non-routine transactions are properly recorded.
106
2014-02 Stormwater Interfund Transfer
During our audit procedures, we noted the City recorded a significant transfer ($385,000) from the
Stormwater Fund to the General Fund. However, this transaction was properly approved as an
interfund advance by City Council to the General Fund. We recommend the City implement
controls to ensure all interfund transactions are properly recorded in accordance with City Council
actions.
C. State Financial Assistance Findings and Questioned Costs: None
D. Prior Audit Findings:
2013-001 Retaina=Withheld: Corrective action taken.
E. Corrective Action Plan:
See attached response to findings as listed in the table of contents.
107
Jaynes Moore
Certified Public Accountants and Consultants
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR STATE
PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE
IN ACCORDANCE WITH CHAPTER 10.550,RULES OF THE AUDITOR GENERAL
To the Honorable Mayor, City Council, and City Manager,
City of Edgewater, Florida:
Report on Compliance for Each Major State Project
We have audited the City of Edgewater, Florida's (the City) compliance with the types of compliance
requirements described in the Department of Financial Services' State Projects Compliance Supplement
that could have a direct and material effect on each of the City's major State projects for the year ended
September 30, 2014. The City's major State projects are identified in the summary of auditors' results
section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its State projects.
Auditors'Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major State projects
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America;the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Those
standards and Chapter 10.550, Rules of the Auditor General, require that we plan and perform the audit to
obtain reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major State project occurred. An audit
includes examining, on a test basis, evidence about the City's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major State
project. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major State Project
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major State projects for the
year ended September 30, 2014.
121 Executive Circle 5931 NW 1st Place 2477 Tim Gamble Place,Suite 200
Daytona Beach,FL 32114-1180 Gainesville,FL 32607-2063 Tallahassee,FL 32308-4386
Telephone:386/257-4100 Telephone:352/378-1331 Telephone:850/386-6184
Fax:386/255-3261 Fax:352/372-3741 Fax:850 1422-2074
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Member ofAGN International with offices in principal cities worldwide
108
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit,we considered the City's internal control over compliance with the types of requirements that could
have a direct and material effect on each major State project as a basis for designing auditing procedures
that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each
major State Project and to test and report on internal control over compliance in accordance with Chapter
10.550, Rules of the Auditor General, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
State project on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a State project will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance
with a type of compliance requirement of a State project that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not suitable for any other
purpose.
C)11�
Daytona Beach,Florida
March 23, 2015
109
Jarvis Moore
Certified Public Accountants and Consultants
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
To the Honorable Mayor, City Council, and City Manager
City of Edgewater, Florida:
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Edgewater,Florida(the City) as of and for the year ended September 30, 2014, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements, and
have issued our report thereon dated March 23, 2015.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements,we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies, and therefore, material
weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during
our audit,we did not identify any deficiencies in internal control over financial reporting that we consider
to be material weaknesses. However,material weaknesses may exist that have not been identified. We did
identify certain deficiencies in internal control, described in the accompanying schedule of findings and
questioned costs that we consider to be significant deficiencies. [2014-01 and 2014-02]
121 Executive Circle 5931 NW 1st Place 2477 Tim Gamble Place,Suite 200
Daytona Beach,FL 32114-1180 Gainesville, FL 32607-2063 Tallahassee,FL 32308-4386
Telephone:3861257-4100 Telephone:352/378-1331 Telephone:850/386-6184
Fax:386/255-3261 Fax:3521372-3741 Fax:850/422-2074
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Member ofAGN International with offices in principal cities worldwide
110
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements,noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
City of Edgewater,Florida's Response to Findings
City of Edgewater, Florida's response to the findings identified in our audit are described in the attached
response to findings as listed in the table of contents. City of Edgewater, Florida's response was not
subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we
express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Daytona Beach,Florida
March 23, 2015
111
" amen Moore
Certified Public Accountants and Consultants
INDEPENDENT AUDITORS' MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550,
RULES OF THE STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL
To the Honorable Mayor, City Council, and City Manager,
City of Edgewater, Florida:
Report on the Financial Statements
We have audited the financial statements of City of Edgewater, Florida, as of and for the fiscal year ended
September 30, 2014, and have issued our report thereon dated March 23, 2015.
Auditors' Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America, and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor
General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditors' Report on Compliance for Each Major State
Project and Report on Internal Control Over Compliance Required by Chapter 10.550, Rules of the
Auditor General; Schedule of Findings and Questioned Costs; and Independent Accountant's Report on
an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor Generals. Disclosures
in those reports and schedule, which are dated March 23, 2015, should be considered in conjunction with
this management letter.
Prior Audit Findings
Section 10.554(1)(1)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
audit report. Findings and recommendations made in the preceding annual financial audit and their status
is summarized in the schedule of findings and questioned costs and below:
2013-002 Fully Insured and Workers Comp Deficit Net Position—Corrective action taken.
2013-003 City's Police Pension Contribution— Corrective action taken.
All findings included in the second preceding fiscal year financial audit report under the same paragraph
headings were corrected.
121 Executive Circle 5431 NW 1st Place 2477 Tim Gamble Place,Suite 200
Daytona Beach,FL 32114-1180 Gainesville,FL 32607-2063 Tallahassee,FL 32308-4386
Telephone:386/257-4100 Telephone:352/378-1331 Telephone:850/386-6184
Fax:386/255-3261 Fax:352/372-3741 Fax:850/422-2074
dab @jmco.com gnv @jmco.com tlh @jmco.com
Memher ofAGN International with offices in principal cities worldwide
112
Official Title and Legal Authority
Section 10.554(1)(1)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. The official title and legal
authority for the primary government are discussed in Note 1 to the financial statements. The City does
not report any component units
Financial Condition
Section 10.554(1)(1)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the City of Edgewater, Florida has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In
connection with our audit, we determined that the City of Edgewater, Florida did not meet any of the
conditions described in Section 218.503(1),Florida Statutes.
Pursuant to Sections 10.554(1)(1)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City of Edgewater,
Florida's financial condition, and our financial condition assessment was based in part on representations
made by management and the review of financial information provided by same.
Annual Financial Report
Section 10.554(1)(1)5.b., Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the City of Edgewater, Florida for the fiscal
year ended September 30, 2014, filed with the Florida Department of Financial Services pursuant to
Section 218.32(1)(a), Florida Statutes,is in agreement with the annual financial audit report for the fiscal
year ended September 30, 2014. In connection with our audit, we determined that these two reports were
in agreement.
Other Matters
Section 10.554(1)(1)2., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Section 10.554(1)(1)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but which warrants the attention of
those charged with governance. In connection with our audit,we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives,the Florida Auditor
General, Federal and other granting agencies, and applicable management, and is not intended to be and
should not be used by anyone other than these specified parties.
Daytona Beach,Florida
March 23, 2015
113
James Moore
certified Public Accountants and Consultants
INDEPENDENT ACCOUNTANTS' EXAMINATION REPORT
To the Honorable Mayor, City Council, and City Manager,
City of Edgewater, Florida:
We have examined the City of Edgewater, Florida's (the City) compliance with Section 218.415, Florida
Statutes,Local Government Investment Policies, for the year ended September 30, 2014. Management is
responsible for the City's compliance with those requirements. Our responsibility is to express an opinion
on the City's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence
about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides a reasonable basis
for our opinion. Our examination does not provide a legal determination on the City's compliance with
specified requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for the
year ended September 30, 2014.
Daytona Beach,Florida
March 23, 2015
121 Executive Circle 5431 NW 1st Place 2477 Tim Gamble Place,Suite 200
Daytona Beach,FL 32114-1180 Gainesville,FL 32607-2063 Tallahassee,FL 32308-4386
Telephone:386/257-4100 Telephone:352/378-1331 Telephone:850/386-6184
Fax:386/255-3261 Fax:352/372-3741 Fax:850/422-2074
dab @jmco.com gnv @jmco.com tlh @jmco.com
Memher ofAGN International with offices in principal cities worldwide
114
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Inc. 1951
MEMO TO: The Honorable Mayor and City Council
The State Auditor General
THRU: Tracey T. Barlow, City Manager
FROM: Jonathan C. McKinney, Finance Director
DATE: March 31, 2014
SUBJECT: Reply to the Independent Auditor's Report on Internal Control and Management
Letter Comments for Fiscal Year Ended September 30, 2014
FINANCIAL STATEMENT FINDINGS
Firetruck Prepaid Deposit
Management concurs with this comment and recommendation to review more carefully non-routine
transactions are properly recorded.
Stormwater Interfund Transfers
Management concurs with this comment and recommendation to review more carefully non-routine
transactions are properly recorded according to City Council Actions.
115
City of
E-'GEWATER
AFFIDAVIT OF IMPACT FEE COMPLIANCE
The City of Edgewater, Florida has complied with Section 163.31801 of Florida
Statues regarding accounting and reporting of impact fee collections and
expenditures.
Tracey T. Barlow Jonathan C. McKinney
City Manager Finance Director
STATE OF FLORIDA
COUNTY OF VOLUSIA
I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the
State and County aforesaid to take acknowledgments, personally appeared Tracey
T. Barlow and Jonathan C. McKinney, whom I know personally and whom executed
the foregoing instrument and acknowledged before me that he executed the same.
WITNESS my hand and official seal in the County and State last aforesaid this 31St
day of March 2015.
Cmmf o #L
E210821
:a Expires Wtember 13 2016
•' e,,drl7hM Yroy Fan,wsorarc.gp}g5.7or9
(Seal/Stamp) Notary Public
(Commission Expiration Date) State of Florida at Large
116