FY 2005 CAFRCITY OF EDGEWATER,
FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
SEPTEMBER 30, 2005
City of Edgewater, Florida
' COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 3, 2006
Prepared by: Finance Department
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INTRODUCTORY SECTION
CITY of EDGEW TER
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE of CONTENTS
Year Ended September 30, 2005
I
Basic Financial Statements
Government -bide Financial Statements:
Statement of Net Assets 1
Statement of Activities 15
Fund Financial Statements:
Balance Sheet - Governmental Funds
1
Introductory Section:
"able of Contents
ki
Letter of Transmittal
iii -Viii
GFCA Certificate of Achievement
ix
List of Pn'ncipal officials
X
Organizational Chart
A
I. Financial section:
1
Independent Auditor's Report
-2
Ma agemenfs Discussion and Analysis
-13
Basic Financial Statements
Government -bide Financial Statements:
Statement of Net Assets 1
Statement of Activities 15
Fund Financial Statements:
Balance Sheet - Governmental Funds
1
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
1
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of
Activities
t
Statement of Revenges, Expenditures and Changes in Fund
Balances - Budget and Actual - General Fund
1
Statement of Net Assets - Proprietary Funds
20-21
Statement of Revenues, Expenses and Changes in
Fund Net Assets - Proprietary Funds
2 2
Statement of Cash Floes - Proprietary Funds
23 -2
Statement of Fiduciary Net Assets - Fiduciary Funds
2
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds
2
Notes to Financial Statements 27 -5
Combining and Individual Fund Statements and Schedules:
Major Governmental Fund:
Schedule of Revenues and Expenditures and Changes in Fund
Balance - Budget and Actual:
Debt Service Fund
CITY of EDGEWATER
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2005
IV. other Reports:
Report on Internal Control over Financial Reporting and on Compliance
Pacie
y
11. Financial Section - Continued,
Nonmajor Governmental Funds.
92-98
Combining Balance Sheet - Nonmajor Governmental Funds
61 -6
Combining Statement of Revenues, Expenditures and Changes
9 -9
In Fund Balances - Nonmajor Governmental Funds
68 -6
Schedule of Revenues, Expenditures and Changes In Fund
97
Balances - Budget and Actual.
98
Special Revenue Funds
6 -70
Capital Project Fund
71
Nonmajor Proprietary Funds:
Combining Statement of Net Assets -
Nonmajor Proprietary Funds
7
Combining Statement of Revenues, Expenses and Changes
In Fund Net Assets - Nonmajor or Proprietary Funds
78
Combining Statement of Cash Flows -
lnrnaor Proprietary Funds
7 -7
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets
76
Combining Statement of Changes in Fiduciary Net Assets
77
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Function and Activity
78
Ill. Statistical Section:
General Governmental Expenditures by Function
79
General Governmental Revenues by Source
80
Property Tax Levies and Collections
8
Assessed and Estimated Actual value of Taxable Property, Net of Exemptions
8
Property Tax Rates, Direct and Overlapping Governments
88
Special Assessment Collections
8
Computation of overlapping Debt
88
Demographic Statistics
86
Property value Construction, and Bank Deposits
87
Summary of Ten Largest Single Unit Water Users
88
Principal Taxpayers
8
Miscellaneous Statistical Data
90
Water and Sewer Revenue Bond Coverage
91
IV. other Reports:
Report on Internal Control over Financial Reporting and on Compliance
And Other Matters Based on an Audit of Financial Statements Performed
In Accordance with Govemment Auditing Standards
92-98
Report on Compliance with Re Applicable to the Major Program
And Internal Control over Compliance in Accordance with 0IIB Circular A -188
9 -9
Schedule of Expenditures of Federal Awards
98
Dotes to Schedule of Expenditures of Federal Awards
97
Schedule of Findings and Questioned Costs - Federal Awards
98
Management Comments
99 -102
THE CITE OF ED GE WA TER
POST OFFICE BOX 10 0, EDGEWATER, FLORIDA 32132 -0100
Honorable Mayor and Members
of the City Council
City of Edgewater, Florida
State law requires that all general - purpose local go en rents publish a complete set of financial statements
presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and
that they be audited in accordance with auditing standards generally ,.accepted in the United. States of Ameri a .by a
firm of licensed certified public accountants. Pursuant to that requirement, it is with great pleasure that we present
to you the City of Edgewater, Florida Comprehensive Annual Financial Deport AF for the fiscal year ended
September 30, 2005.
This report consists of management's representations concerning the finances of the City of Edgewater.
Consequently, management assumes fill responsibility for the completeness and reliability of all of 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 ftanriework 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 financial statements in conformity with GAA. Because the cost of internal controls should
not outweigh their benefits, the City of Edge water's comprehensive ensive frameworl of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be fire from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
The City of dgewater's financial statements have been audited by Mcf. irn it Davis & Company, LL C, a firm of
licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that
the financial statements of the City of Edgewater for the fiscal year ended September 30, 2005, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor concluded, based
upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of dgewater's
financial statements for the fiscal year ended September 30, 2005, are fairly presented in conformity with accounting
principles generally accepted in the United States of America. The independent auditor's report is presented as the
first component of the financial section of this report.
The independent audit of the financial statements of the City of Edgewater was part of a broader, federally mandated
"Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single
Audit engagements require the independent auditor to report not only on the fair Presentation of the financial
statements, but also on the audited government's internal controls and compliance with legal requirements, with
Special emphasis on internal controls and legal requirements involving the administration of federal awards. These
reports are available in the Other Reports section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management"s Management" Discussion and Analysis I A A . This letter of transmittal is
designed to complement MD&A and should be read in conjunction with it. The City of Edgewater's MD&A can be
found immediately following the report of the independent auditors.
Honorable Mayor and Members
of the City Council
Page 2 of
ECONOMIC CONDITION AND OUTLOOK
The City is located in southeast volusia County, primarily east of 1-95, south of New Smyrna Beach, two miles west
of the Atlantic Ocean and runs aloe, 10.5 guiles of the Indian River coastline. The City is within the economic zone
of Central Florida, which roughly follows Interstate 4 ftom Tampa to Daytona Bcach through Orlando to the
cur xnur hies along the Atlantic Coast in olusia County.
Edgewater continues to experience a moderate and increasing rate of growth. The City's population in the last year
increased from 20,637 to 21,156, a 2,5 percent increase. Economic Factors and residential development interest with
the City indicate these treads will continue to rise. As of November 2005, the City has issued 277 single - family
residential home penults, a 42 percent increase from the previous year, with several new subdivisions undergoing
the approval process, this number is expected to continue to increase. Additionally, the City is reviewing several
propose multi - family condominium and town home projects, which are expected to be approved in 2006.
Approximately 6,000 acres of primarily undeveloped property was annexed into the City limits in 2005. The
majority of this property is expected to be developed as either commercial or residential uses. Lang established
businesses such as Coronado paint, Boston whaler, Edgewater Power Boats, R.J. Dougherty Associates, Inc, Prta
Products, Tropical Blossom Honey, as well as an expanding medical community, light manufacturing businesses
and residential home construction 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. Many of the City's residents commute to Daytona Beach, Deland and Orlando for business
employment as well.
The community currently has a 3.94 percent unemployment gate, below the state average of 4.0). ]wring the last
year, taxable assessment values of property in Edgewater have increased 20.72 percent. As the economy grows,
recent growth tr nds experienced by the City are expected to increase. The City continues exploring several options
to increase economic growth within the City and improve economic development within southeast Volusia County.
Toward the goal, the City's Economic Development Board is continuing its emphasis on result -- orientated initiatives.
The City continues to develop marry partnerships between various economic development agencies and local
businesses.
The City's economic'growth initiative intensified with the continuing development ofParkTowne Industrial Center,
Growth within the Park remains strong with the addition of pri ate owner Robert Towe, A.S.D. Properties Manage-
ment, LL C, American In-Line Inspection Services, Inc. and Mersino Properties Company, LLC. On October 2 1
2005, City and County officials gathered at the Park to break ground on an infrastructure project that will further the
City's goal of making ParkTowne the center for new jobs in Edgewater. The ongoing development of the property
will spur nonresidential economic growth for the City and stimulate additional economic benefits for the Park
Avenue corridor. Daytona Beach Community College, which has a campus adjacent to the project site, may assist in
attracting new jobs through the creation of marine industry technology center on a portion of"the project site.
The economic condition and outlook for the City is strong. The major initiative toward economic development such
as ParkTowne is shifting the tax burden from primarily residential to a combination of commercial. and residential.
This approach is creating an atmosphere within southeast Volusla County that is desirable to lure and work ire.
MAJOR INITIATIVES
arkTo ne industrial Center is continuously expanding. Phase I is completely sold out. Currently the City has dive
contracts pending on 11.24 acres — 1.7 acres at $5 0,000, 7.1 acres at $65,000 and 2.44 acres at $71,500. Most of
these contracts are scheduled to close in early 2006. Also, capital projects within the Park include infrastructure
improvement. Included during the First phase of that project are two stormwater ponds, an l ),0 00 square -foot
drainage ditch, a 23,000 square-foot drainage system and 1,800 linear feet of gravity sewer system. Two new roads
will be constructed as well. Base Leg give will run nest from ParkTowne Boulevard. The cast for Phase l
improvements totals approximately S1.3 million, of which $300,000 was provided through the County to assist with
1V
Honorable Mayor and Members
of the City Council
Page 3 of
construction of the project. The City has also completed the planning and design for Phase 11 of the industrial
development
In 2005, the Planning and Building Depaftments were united under the new umbrella of the Development Services
Department. This merging allows for a smoother, more effective flow of information and enables more expedient
processing of development projects by making more efficient use of department resources.
The Police Department has secured financial fading for a fail -time "Victim's Advocate"' position through a VDCA
grant. The Victim Advocate will assist victims of crime in dealing with the aftermath of being a victim and seeking
redress. The Advocate will also provide emotional support, counseling, or financial assistance whenever possible.
A second initiative is the establishment of a local ordinance, which recoups the costs of Officers investigating the
traffic accidents of non - residents. This ordinance will effectively pass on costs for reimbursement to the insurance
companies who greater benefit from local Police services without paying for therm. All Supervisors and critical
training positions within the Edgewater Police Department are now. Late of Flonida.CMS certified instructors, As.
such the Edgewater Police Department can provide its own in- service training that is recognized and sanctioned by
the Florida Department. of Law Enforcement FDLE). This will greatly reduce our training costs while raising
individual and Department standards.
The Fire - Rescue Department continuously experiences increases in request for service, last year the department
responded to over 3,300 incidents, which represents a 0% increase over the previous year alone. The rescue service
request range from anything as simple as basic medical assistance to advanced life support treatments or traumatic
injuries. The fire response may involve anything as basic as assisting with the installation of a smoke detector to
responding to a catastrophic residential or commercial structure fire. The Fire Marshall also remains challenged with
the increase in plans review for new commercial, multi - family residential planned unit developments as well as new
occupational licenses and life safety inspections. The Department recently received three federal rants totaling
$328,000 in order to replace worn out equipment. The Department has also completed grant applications through the
Hazardous Mitigation Grant Program for an additional $192,000. If approved, proceeds wi(i be used for the
acquisition of properties with homes that experience repetitive flooding as well as hurricane protection for critical
municipal facilities.
The Community Service Division of the Fire-Rescue Department, which includes Code Compliance and Animal
Services, has also experienced an influx its request for services. Code Compliance has handled over I, 600 requests
with many requiring extensive research. The Division was successful in closing many old cases with a lengthy
outstanding history. The citation -based system remains effective, as violators are required to pay a fine if they do not
comply within a reasonable amount of'time. They have also noticed a reduction in repeat violations with the
implementation of the citation -based system. The Animal Services Division received over 3,200 requests for service.
Since Animal Services operations continue to operate out of a temporary holding facility until a new shelter is
constructed, they remain aggressive with the return -to-- owner initiatives for all lost owned animals.
The Personnel DepaTtment has revised the City's Peer onneI Policies and Procedures to co -exist with the collective
bargaining agreements, The Personnel Department has developed and implemented a policy and procedure manual
for those employees not covered by a bargaining agreement, as well as separate manuals for management personnel.
. thorough review of al l the City's job positions needs to be per and new emplo yee job descriptions
prepared. The manning level in each department also needs to be reviewed to determine if staffing is sufficient to
provide the services to the community. The upcoming year appears to hold some major Personnel Department
activities, Reacting to the needs of the City employees is the Personnel Department's primary function; they are the
City's most valuable and most expensive resource.
Leisure Services continues to plan for new and redevelopment of the City's current park system. The plan includes
renovating the old bail fields at Hawk Park into a soccer complex, redeveloping Kennedy Park to benefit area
boaters and sport fisherman and design and plan for new shuffleboard facilities to be located at rotary Park. Leisure
V
Honorable Mayor and Members
of the City Council
Page 4 of
Services obtained additional grants from ECHO and F DAP and will be constructing a roof over our new outdoor
amphitheater and restror)m facilities at Hawks Park. Beautification project with landscape thern s along S. R. 442
(Indian River Blvd. ) and U.S. ] (Ridgewood Ave.) is under construction and most likely will be completed in 2005
or early 2006.
The City's Department of Environmental Services is designing and permitting four new potable water production
wells at the Alan R. Thomas Water Treatment Plant Welff eld. The Department is also constructing improvements to
the lirue sludge processing operation and is converting the primary disinfection system from gaseous chlorine to
sodium hypochlorite at the Alan R. Thomas Water Treatment Plant. The Par Towne Industrial Center Phase I
Drainage and Utility Improvements Project is underway and will provide water, sewer, and storwater service to
additional industrial parcels within the center. The Department has acquired 17.94 acres from Volusia County (the
former Hacienda Del Rio water plant site) and is preparing plans and specifications for storage and high service
pumping of both potable and reclaimed outer to be erected on the site. The Radio -Revd Water peter project has
been completed and will result in greater meter reading efficiency in terms of man-hours reading and accuracy of
readings. The wastewater Treatment Facility has installed some rnajx energy saving equipment in the foram of new
compressors for the filters and variable frequency drivers CVD for the Biological Nutrient Removal Basin
{ F . Phase 1 of the Reclaimed Water System Trun line Project is substantially complete and will result in
better product delivery to existing customers.
DEPARTMENT FOCUS
The Development Services Department will continues to focus on ensuring responsible development of the City's
lams and to encourage development of distressed areas. The Department wil l remain proactive in promoting the
City's vies while protecting the wholesome "sin li town" atmosphere it is noted for.
The Police Department's continued focus on reducing crime over the past year has once again reflected a decrease.
In the first portion of the year 2 005 (January -June) they have experienced a —3.3% drop in total crime. Given the
increase in population and boundary growth this figure is very promising. An aggressive approach in responding to
local crime problems and successful follow-up investigations are being credited with making this possible. A
secondary result has been a higher number of offenders arrested. Increases are mainly those of illegal
drug/possession arrests. Increased community involvement and Officers becoming more familiar with local violators
and their activity locations has had a dampening effect on local problems. A continuing community concern and
repeated issue is that of traffic enforcement. Officers are responding to all complaints of speeders or reckless drivers
in residential neighborhoods. Complaints are down from the previous year despite growth.
The Fire- Rescue Departments focus continues to be on providing superior emergency medical advanced life support
services and fire response. The average emergency response time remains - minutes or less to the majority of our
community. Great effort also remains towards the prevention of emergencies. The prevention method begins with
Fire Marshals plans review during the developmental stage and continues through public educational initiatives as
well as life safety inspections, which are conducted annually on all commercial businesses. The Department will
also conduct in- service training for all critical City staff far the implementation of the newly adopted
Comprehensive Emergency Management Plan CEMP) and the National Incident Management System (Nibs). The
Department continues its focus on maintaining cooperative agreements with other agencies in order to enhance our
cost effective services through the sharing of resources. These agreements include every fire - rescue agency within
the county for closest unit response, neighboring cities for regional consolidated dispatching, National Park Services
for mutual aid requests and equipment grants, and the American Red Cross for shelter- management and disaster
logistical support. The Department also plans to enter into a transport agreement with E AC Ambulance Services in
the fall. The agreement will allow for us to transport patients when their ambulances are unavailable or with an
extended response time. Not only will such transports improve patient care to our residents, the ambulance service
will also compensate us for the response.
Vi
Honorable Mayor and Members
of'the City Council
Page 5 of 6
The Code Compliance Division focuses on the maintenance of compliance throughout the City while contributing
efforts towards research and recommending improvements to the current codes. The Division will also implement an
electronic records management system. The system will allow the records process to be streamlined as well as
providing for convenient research of historical records for repeat violation stags. The system will eventually be
accessible through the Internet making it convenient for residents to report and track code enforcement complaints,
The primary focus for the Animal Services Division will be on the construction of the new animal shelter facility;
Animal Services will also focus on recommending improvements to the ordinances that will address animal adoption
fees. Revenues from these fees will assist with the care of the animals and the operations of the shelter.
In the Personnel Department, it was noted that the City made staves this year working with the broad banding
classification system. The directors gained confidence in the system and employees have benefited from it. Salary
range and job position adjustments were administered to keep the City competitive with this area's market. The
employee collective bargaining agreements were negotiated and ratified in 2004. This is always a stressful
undertaking for. the City and the past year was no exception. The Police Department held a representation election in
the middle of the negotiations, Both PEA and FOP contracts were ratified and adopted by the City Council and
distributed to a]l departments. During the hurricanes, employees' needs increased. Though only a handful of
employees suffered injuries, many others suffered personal property damage. Arrangements were made with the
City's deferred compensation company for financial assistance. while these employees were trying to get their
homes back in I1ving conditions, many of them were putting in several extra hours at work In an effort to get
the City back in order. The Personnel Department staff made the transition into a temporary location due to the
storm damage in their previous offices.
Leisure Services will continue to work with the YMCA and other organizations to provide programs for both youth
and adults in our community. As the year progresses, construction will begin at three ) City Pans; soccer
complex, restroom facilities and roof over the outdoor amphitheater at Hawks Park, shuffleboard facilities at Rotar
Park and fishing pier at Kennedy Park. Completion of these projects will hopefully be in late 2006. Along with these
upgrades in facilities of our Park system the Leisure Services Dept. will continue with additional beautification of
our local highways.
FINANCIAL INFORMATION
The information presented in the financial statements is perhaps ]nest understood when it is considered from the
broader perspective of the specific environment within which the City of Edgewater operates.
Budgeting Controls. The annual budget serves as the foundation for the City of dgewater's financial planning and
control. All departments of the City of Edgewater are rewired 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 dgewater's fiscal year. The appropriated budget is prepared by fund e.g., general Rind), department
e.g., fire department) and division e.g., erns). The City Manager may make transfers of appropriations within and
between divisions and departments; however, any revisions that alter the total appropriations of any fund must be
approved by City Council. Original and final amended budget- to- actaal comparisons are provided in this report for
each individual governmental fund. The General fund is presented on page 19 as part of the basic financial
statements for the governmental f unds. For other govemmental hands these comparisons are presented in the
govemmentai fund subsection of this report, wh ich starts on pages 6 l-71.
Lang --term fina, cia1 planning. The City Council updated and adopted a -year Capital Improvements Plan CIP
during fiscal year 2005. The CIF is a multi -gear prioritized schedule of improvements that lists each capital
improvement by year it is intended to be purchased or commenced; the mount to be spent per year; and, the method of
fmancing such improvement. Each year during the annual budget process the CIP is reviewed to ensure incorporation
of all necessary capital improvements. 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, opport hies, costs, or different financing
approaches.
Vii
Honorable Mayor and Members
of the City Council
Page 6 of
Cash management policies and practices. The City administers a cash management and investment program that
seeks to maximize, its order of priority, the preservation of funds, liquidity and interest earnings over its cash and
investments. Cash resources of the individual fads are combined to form a pool of cash and investments. The City's
cash and investment pool balance at September 30, 2005 (not including pension funds) was $6,690,288. investment
income includes the change in the fair value of investments. During the year monies were invested in US. Agencies
and Treasues and the State Board Administration Local Government Investment Pool in accordance with the City's
Investment Policy. Pension fund assets were invested mainly in equity and bond funds in accordance with the City's
Investment policy for Retirement Funds, The total pension fund assets at September 30, 2005 were 1,524,759.
Risk Management During the ordinary course of its operations, the City is exposed to various risks of losses. The
City maintains commercial insurance coverage in amounts management feels is adequate to protect and safeguard the
assets of the City. In the opinion of the City }s management and legal counsel, legal claims and litigation are not
anticipated to have a material impact on the financial position of the City.
Pension and other postretirement benefits. The City of E dgewaler sponsors three single- employer defined benefit
pension plans for its employees. Each year, an independent actuary engaged by the pension plan calculates the amount
of the Annual Required Contribution (ARC) that the City of Edgewater must male to the pension plan to ensure that
the plan will be able to fully meet its obligations to retired employees on a timely basis. In addition, police and
firefighters are required to contribute % of their salary to the plan. General employees must contribute 2.5% of their
salary to the plan.
AWARDS AND ACKNOWLEDGEMENTS
The Covemment Finance Officers Association G A awarded a Certificate of Achievement for Excellence in
Financial Reporting to the City of Edgewater for its CA FR for the fiscal year ended September 30, 7-004. The City
of Edgewater has received a Certificate of Achievement for the last twenty -ore consecutive years. In order to be
awarded a Certificate of Achievement, the government published an easily readable and efficiently organized
CAF R. This report satisfied both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. we believe that our cur CAFR continues to
meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its
eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the entire
staff of the finance department. We would like to expTess our appreciation to all members of the department who
assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and the City
Council for their unfailing support for maintaining the highest standards of professionalism in the management of
the City of Edgewater"s finances.
Respectfully submitted,
e . Hooper Jon C. Williams
City Manager Finance Director
V#1i
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented t
City of E
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Faded
September 30, 2004
A Cerlificale of Achieyemmt for Excellence in Financial
Reporting is presented by the Goverment Finance Officers
Association of the United States and Canada to
govcrament units an public employee retirement
systems wbose comprehensive annual financial
reports (As ) achieve the highest
standards in government accountin
tin
and financial reporting.
SAM
�rro
Pres
R
E xecutive Director
IBC
CITY OF EDGEWATE , FLORIDA
LIST OF PRINCIPAL OFFICIALS
Year Ended September 30, 2005
Ado
Donald A. Schmidt
mid
CITY COUNCIL
James P. Brown - District 1
Dennis A. Vincenzi - District 2
CITY MANAG
Kenneth Hooper
CITY ATTORN
Paul E. Rosenthal
Harriet E. Rhodes - District 3
Judith R. Li hter - District
CITY CLERK
K
Susan J. Wadsworth
FINANCE DIRECTOR
Jon C. Williams
12
CITY OF EDGE WA TER
ORGANIZATIONAL CHART
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FINANCIAL SECTION
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M CDIRMIT , /// DA
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
INDEPENDENT AUDITOR "S REPORT
Honorable Mayor and City council
City of Edg Florida
Edgewater, Florida
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
City of ev ater, Florida, as of and for the year ended September 30, 2005, which collectively
comprise the city's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express a n
opinion on these financial statements used on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
State of Ameri and the standards applicable to financial audits contained i Go
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 ar free of materi m isstatement. A n audit includes ex on a test
basis, evidence supporting the amo and disclosures in the financial sta teme nts. A audit also
includes a sses sing the account principles u sed and significant e stimates made b
m ana gement, as well as evaluating the overall financial statement presentati W beli that
our audit provides a reasonable basis for our 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 of Edgewater, Florida, as of
September 30, 2005 and the respective changes In financial position and cash flows, where
applicable, 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.
M DI MIT DAMS & COM
.f C
605 E . R. ISO S`T'R�'rT SUI TE 635 • OR L ANDO, FLORIDA 32801
Tr- ,LEP110Nf; 407-843-5406 a FAx 407-649 * EMAIL: IN-FO@ ITDAVIS.COM
MIVMBCR5: PR IVA TE COM E'AN1E P R AC - rfCr, SGT lON * A M E R I C AN [NSTI'1'UTE 0 F CT. R T I F i r - D 1 1 11 13LIC AC'C'ouNTANT S * r1.0RIDA INF5TITtj rE 0 F C E RTIF1E0 PURL;c A CCOV N TA NT
In accordance with Govemment Auditing Standards, we have also issued a report dated
January 13, 2006 on our consideration of the city of Edgewater, Florida's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations
contracts and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing and internal control over financial reporting and compliance and the
result of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Goverment Auditing Standards and should be considered in conjunction with this report in
considering the results of our audit.
The Management's Discussion and Analysis on pages 3 through 13 is not a required part of the
basic financial statements but is supplemental information required by the accounting principles
generally accepted in the United States of America. We have applied certain limited
procedures, which consisted principally of inquiries of management ement regarding the methods of
measurement and presentation of the supplemental information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the city of dewater's basic financial statements. The introductory section,
combining and individual nonma or fund financial statements and schedules and statistical section
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-
133, Audits of States, Local Governments, # and Nora- Profit Organizations, and is also not a
required part of the basic financial statements of the city of Edgewater, Florida. The combining
and individual nonnajor fund financial statements and schedules and the schedule of
expenditures of federal awards have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are fairly stated in all material respects
in relation to the basic financial statements taken as a whole. The introductory section and the
statistical section have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we express no opinion on then.
r
Mc IRMIT DAMS & COMPANY, LLC
January 13, 2006
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, 2005, 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
The assets of the City of Edgewater exceeded its liabilities at the close of the most recent
fiscal year b $45,751,502 (net assets). Of this amount, $10,498,770 (unrestricted net
assets) may be used to meet the government's ongoing obligations to citizens and
creditors.
• The government's total net assets increased by $861 ,359.
• As of the close of the current fiscal year, the City of Edge eater's governmental funds
reported combined ending fund balances of $3,736,607, an increase of $1,318,924 in
comparison with the prior year. Most of this total amount is available for spending at the
government's discretion (unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the general fund was
$1,199,383, or 11 % of total general fund expenditures.
Overview of the Financial statements
This discussion and analysis are intended to serve as an introduction to the City of dgewater's (the
City) basic financial statements. The City's basic financial statements comprise three components: 1
government -wide financial statements, 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 E gewater'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 assets, over time, increases or decreases in net assets
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 assets changed
during the most recent fiscal gear. All changes in net assets are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flogs. 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
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Both of the government -pride financial statements distinguish functions of the city of Edgewater that
are principally supported by taxes and intergovemmental 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 w ater and sever, refuse collection, stormwater
management, development fees and renewal and replacement.
The government -vide financial statements include only the City of Edgewater itself known as the
primary government). The City of Edgewater has no component units.
The government -vide financial statements can be found on pages 14 - 15 of this report.
Fund Financial Statements
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, life 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 sane functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus can near -term
inflows and oufflo s 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 -vide financial
statements it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -pride financial statements. By
doing so, readers may befter 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 debt service
fund, both of which are considered to be major funds. Data from the other seven governmental funds
are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
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 19. Budgetary comparison schedules have been provided for the
debt service fund and the nonrnajor funds at pages 6 0 and 65 , 71.
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
The basic governmental fund financial statements can be found on pages 16 - 19 of this report.
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 o f Edgewater uses enterprise funds to account for water and sewer,
refuse collection, stormwater management, development fees and renewal and replacement.
Proprietary funds provide the sane type of information as the government -wide financial cial statements,
only in more detail. The proprietary fund financial statements provide separate information for water
and sewer and refuse collection, which are all considered to be major funds. Data for the other
proprietary funds are combined into a single aggregated presentation. Individual fund data for each of
these nonmajor proprietary funds is provided in the form of combining statements else where in this
report,
The basic proprietary fund financial statements can be found on pages 20 - 24 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 - 26 of this report.
Notes to the fi a cull statements* The notes provide additional information that is essential to a
full understanding of the data provided in the government -pride and fund financial statements. The
notes to financial statements can be found on pages 27 - 59 of this report.
Other information. The combining statements referred to earlier in connection with nonma or
governmental and proprietary funds are presented immediately following the Notes to Financial
Statements. combining and individual fund statements and schedules can be found on pages 61 -5
of this report.
Government-Wide Financial Analysis
As Noted earlier, net assets may serge over time as a useful indicator of a government's financial
position. In the case of the City of Edgewater, assets exceeded liabilities by $45,751,502 at the close
of the most recent fiscal year. The following table reflects the condensed statement of net assets for
the current and prior years. For more detail see the Statement of Net Assets on page 14.
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
City of Edgewater
Statement of Net Assets
Assets:
Current e IL a J other assets
Capital Assets
Total Assets
Li blli es:
Long term liabilities
Other liabilities
Total liabilities
Net Assets:
Invested in capital assets,
G overnmental Activites
Business :Type
Actyities
Total Prima
ov m e t
2005
2004
2005
2004
2005
2004
7,201,690
6,765,287
$16,066,309
$ 20,244 } 390
$23,267,999
$27,009,677
-. 1 , 11 41$07 6
1 . 1 6 1 . 9 1 4 33
64
5 0 $ 232,897
7' i 7 580
69
26,342,766
26,384,720
71,708,813
70,477,287
98
96,862,007
11,014,254 12,397,810 37,297,954 33,811,574 48,312,208 46,209,384
1 8 176 1 213 957 2 4 548 623 3 6
12,132 # 430 13,611, 767 40,167,647 38,360,097 52,300,077 51, 971, 864
net of related debt 9,283,844 8,207,197 18 16,796,965 27,924,923 25 # 004,162
Restdcted 3 1 760,701 4,168,822 3,567,108 3,158,533 7,327,809 7,327,355
Unrestricted 1 1 165 191 398 934 9 12161 692 10,498, 770 12,558,626
Total Net Assets 43
Sixty -one percent (61%) of the City's net assets reflects 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 tc citizens;
consequently, these assets are not available for future spending. Although the City of Ed rat is
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 Ed at is net assets (16%) represents resources that are
subject to external restrictions o n how they may be used. The remaining balance of unrestdcted net
assets ($10,498,770) may be used to ,greet the government's ongoing obligations to citizens and
cred itors.
At the end of the current fiscal year, the City of Edgewater is able to report positive balances in all
categories of net assets.
The City's net assets increased by $861,359 dining the current fiscal year. The reasons for this
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 15.
LW
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
City of Edgewater
Changes in Net Assets
Revenues:
Program revenues -
harges for services
Operating grants and
contributions
C apital grants an
ontdbuti ns
General revenues -
Property taxes
Franchise and 01 t
taxes
Intergovernmental
Investment in ome
and miscellaneous
Total revenues
Expenses:
General government
Public safety
Transportation/public works
Leisure services
Interest on long-term debt
Water and serer
Refuse collection
tcrmwater management
D evelopment fees
Renewal and
f �� replacement
Total expenses
Increase (Decrease) in Net
Assets Before Transfers
Transfers
Increase Decrease in
Net Assets
N et Assets - Beginni ng
Net Assets - Fading
2005 2004
Governmental Activffies
1 ,750,505 1,41 9,760
574,193
951,853
326,163
487 ,060
4,125,604
3,884,932
2,721,040
2,616,
X 1, 901 ,1 35
1,746,746
468,314
359,091
11,866
11 ,464,64 0
2,801,630
2,227,242
6235,432
6,212,619
725,242
1 ,257 t 545
1,727
1,572,699
310,433
324
-111799%
1 1..r 94+ 2
67,310
(129,593)
J
., 1,412,650
1,437,383
1,283,057
- 12, 772.953
11,489,896
Business-lype Activities Total Primary Government
2405 2004 2005 2004
$ 9,335,210 $ 8,237,655
1,224,518 2,303,189
1,218,691 9B9,665
$ 1 1 ,085,715 9,657,615
1 ,798,71 3,255,052
1 ,54,854 1 ,476,725
531,757 637,063
„12,316417 6 12,167,772
7,286,475
6,681 ,657
2,951,045
4,288,882
935
929,433
11 0
58,515
• 00,331
248,505
1 71,999
11.522.127
12.140.486
794 27,286
(1 (1 5 412,650 )
(576,024) (1,385,354)
32,117,190 33, 502, 554
31- 54'1__168 $3 2,1 . 1 - 7 1 190
7
4
3,884,932
2,72
2,61 5,'188
1,901,135
1,745,746
1 006.071
996.154
24,183,130 23.532.412
2
2,227,242
6,
6,212,610
y
25,242
1,257,545
1,727,507
1,572,699
31 0,433
324,137
7
5,581,657
2,951,045
4,288,882
935,770
929,433
100,331
68,51
248
'171 999
23.321.771 71
23.734319
861,359 102, 307
861,359 (102,307)
44 _44, % 450
tA4 1 43
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Governmental activities - Governmental activities increased the City of Edgewatecs net assets
by $1,437,383. Key elements ents of this increase are as follows:
• Property taxes increased by almost $240,672 % during the year.
• Charges for services increased by $330,745 (23%) primarily due to increase in building
permits and impact fees.
• Intergovernmental revenues increased by $154,389 % during the year.
Business-type activities - Business-type activities decreased the City of Ed a eater's net assets
by $575,024. Key elements of this decrease are as follows:
Charges for services increased by 13%, however there was a net decrease of 26% in
operating and capital grants since more FEMA revenue was earned in 2004.
• Expenses decreased around $600,000 from 2004. This net decrease was due to a
decrease in hurricane expenses in 2005, as well as increase in grater and suer operating
expenses.
P
M ANAGEMENT'S DISCUSSION AND ANALYSIS CONTINUED
Expenses and Program Revenues - Go vern mental Activiti
$ 7,000.00
$6,000,00D
$5,000,000
$4,000,000
$5,000,000
$2,000,000
$1,000,000
..:...................
4�.
iDEVe ses Wrogram revenues
Revenues y Source - Governmental Activiti
I
1 6%
Property takes
35 %
p }� Prog revenues
r �:,.r rC
���s !, a
�',, ° 1
} k
mmw
' 7tr rvsfis t y,
r
Investment income
miscellaneous
Other taxes ° fie
23 %
[M Intergovernmental Wrogram revenues M invest ent income & miscellaneous 0 Other taxes p Property taxes
9
General government Public safety TwsportOWPublic worM Le isure services Interest on long-tern dabt
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Expenses and Program R evenues - Busi Type Activities
$7,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
0
R evenues Source - B usiness-Type Activitie
E9 Investment income & miscellaneous M Charges for services 0 Capital grants and contributions 0 Operating grants and contribution
Operating grants and
ontriL
1+
C apital grants an.
c ontributions
10%
wrrfur �rw. fAr ser► #ces
7%
1
Watar and sewer Refuse coltection Stormwater management Dav lopment fees Renewal and replace
O E :xpenses ® Pro ram revenue
Investment income
Miscellaneous
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
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, unreserved 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 $3,736,607, an increase of $1,318,924 in comparison with
the prior year. Approximately 92% of this amount ($3,448,463) constitutes unreserved fund
balance, which is available for spending at the City's discretion. The remainder of fund balance
is reserved to indicate that it is not available for new spending because it has already been
committed to 1 pay debt service ($255,589) or for other purposes ($32,555).
The general fund is the chief operating fund of the City of Edgewater. At the end of the current
fiscal year, unreserved fund balance of the general fund was $1,199,383, while total fund
balance was $1 ,231,938. As a measure of the general fund's liquidity, it may useful to compare
both unreserved fund balance and total fund balance to total fund expenditures. Unreserved
fund balance represents 10.5 percent of total general fund -expenditures, while total fund
balance represents 10.8 percent of that same amount.
The fund balance of the general fund increased by $709,849 during the current fiscal year. This
increase was due primarily to FEMA revenue of $365,260 received in 2005. Also, general fund
expenditures were less than budget in all departments except public safety.
Proprietary F unds -- The City Edgewater's proprietary funds provide the same type of
information found in the government -wide financial statements, but in more detail.
Unrestricted net assets of the proprietary funds at the year end amounted to $9,332,979. The
total decrease in net assets for these funds was $576,024. 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 Hi hli hts
Differences between the original budget and the final amended budget were mainly clue to
moving appropriations from the general fund to a new grant fund. During the year actual
revenues were $826,814 more than budgeted revenue and actual expenditures were $724,139
less than budgeted expenditures. However, actual expenditures did exceed budgeted
expenditures in the following functions: public safety,
11
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTIN
Capital Asset and Debt Administration
Capital Assets - The City of Edge w ter's investment in capital assets for its g overnmental and
business - type activities as of September 30, 2005, amounts to $74,783,580 net of accumulated
depreciation). This investment in capital assets includes land, buildings, improvements,
machinery a nd equipment and infrastructure. The total increase in the City's investment i
capital assets fo the current fiscal year wa 7 %. Major capital asset events during the cu rr e nt
fiscal year included the following.
+ The H awks Park Concession/Lighting/Restrooms costing $421,777 was completed.
•
Construction n - - in: progress - - de r as ed for ' usiness 4ype -- activities primarily -- because of
completion of the Western Utilities expansion and Terra Mar village Utilities
improvements.
City of Edgewater
.. Ca pital Ass
A s of September 30,
.and
Buildings
Improvements
nts
Machinery an
equipment
Infrastructur
Construction i
progress
Total
Gov ernmental Activifie
Business -Type
Activities
Total Primary
Govem e t
2005
2004
2005
2004 Y
2005
2004
3 ,779,436 x9,436
3 * 436
$ 676
$ 676
$ 4,456,263
4,456,263
2 ,631 t 446
2
1 3,572,356
14,320,213
16,203,802
1 7,076
0,733
3 * 906,546
39, 56,216
31
47,994,947
39
1 x I ; 996
1 1 224,226
1 �264
1 x 300 2 376
; 403 ; 423
2 ,524,602
737,132
792,740
-
-
787,182
792,740
2, 065.235
2,166.651
372,673
, X 910,33
2,937,958
5,07
9.14 .010
.
z
'4. . 0
.8 .
Additional information on the City of d w t is capital assets can be found in [dote 8 of this
report.
1
MANAGEMENT'S E T'S DISCUSSION AND ANALYSIS - CONTINUED
Long-Term Debt - At the end o f the current fiscal year, the City o f Edgewater had total debt
outstanding of $46,956,884. This debt includes bonds payable, notes p ayable, the state
revolving loan and capital leases, Additional information on long -term debt can be found in
Notes 7 and 8 of this report.
City of Edge
Long -Term Debt
As o f September 30,
E xww
- - -- Business -Type A Total P ei m ag Government
2005 2004 2005 2004
1 1 11 O $11 F 535,
,147,17 7,039543
13 14,574
5,544, 39 5 1 9 52
59 i o
1 1311 0,000 $
1 573, 7 1 7 } 998 1 959
1 3,293 ,345 14 ,574 ,225
875 41 R'�y} 772
�1 �A /a
The City of dgev ater's total debt increased by $1,999,928 percent) during the current fiscal
year. This is includes:
City entered into a capital lease agreement for $6,254,752 for the acquisition and
installation of new eater meters.
Next fear's Budget and Rates
During the current fiscal year, the unreserved fund balance in the general fund increased t
$1,199,383. The City has not appropriated an o f th is amount for spending in the 2005 fiscal
year budget since the plan is to increase the unreserved fund balance so that it at least - 0%
of general fund operating expenditures.
Requests for Information
This financial report is designed to provide a gener al overview o the City o Edgev ater's
finances for all 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
13
G overnmental A tivifie
2005 200_
Bonds payable
-µ
Notes p
9 526 0 110 1 O 5 ,41
St revolvin
Capital leases
3 452,
E xww
- - -- Business -Type A Total P ei m ag Government
2005 2004 2005 2004
1 1 11 O $11 F 535,
,147,17 7,039543
13 14,574
5,544, 39 5 1 9 52
59 i o
1 1311 0,000 $
1 573, 7 1 7 } 998 1 959
1 3,293 ,345 14 ,574 ,225
875 41 R'�y} 772
�1 �A /a
The City of dgev ater's total debt increased by $1,999,928 percent) during the current fiscal
year. This is includes:
City entered into a capital lease agreement for $6,254,752 for the acquisition and
installation of new eater meters.
Next fear's Budget and Rates
During the current fiscal year, the unreserved fund balance in the general fund increased t
$1,199,383. The City has not appropriated an o f th is amount for spending in the 2005 fiscal
year budget since the plan is to increase the unreserved fund balance so that it at least - 0%
of general fund operating expenditures.
Requests for Information
This financial report is designed to provide a gener al overview o the City o Edgev ater's
finances for all 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
13
This page intentionally left blank.
BASIC FINANCIAL STATEMENTS
This page intentionally left blank.
CITY F E DGEWATER, FLORIDA
STATEMENT of NET ASSETS
September 3, 2005
Assets:
Cash and cash equivalents
R eceiva bles, net
Inventories and prepaid costs
Due from other governments
Internal balances
Restricted assets:
Cash and cash equivalents
I nvestments
Special assessments receiva
B ond issuance costs
L and held f resale
Investment in joint vent
Capital assets not being depreciated
Capital assets being depreciated, net of
accumulated depreciation
Total Assets
Liabilities:
Accounts payable and other current liabilities
Due to other g overnment s
U nearne d revenue
Accrued interest payable
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
Net Assets:
Ingested in capital assets, net of related debt
Restricted for:
Capital projects
Debt service
U nrestricted
Total Net Assets
Prima Government
Governmental Business -type
Activities Activites Total
$ 4 381,973 4
1 23 1 316 2 2,6'18,127
32 - 3
72 1, 83,651 1
(130,359) 1 39,359 -
2153%747 Z539
9,283,844 18 F 079 27
1 ,193
1
1 1 156,946
2
7,294
9M8,662
1
3 1,979
231 �9 �!
"'
400
-
406, 473
32,988
32
5,844,721
1,549,500
7,394,221
13
54
67
26 ,342 3 766
71, 98
98,051
642
2, ,332
3,043
3,17'1
-
3
473
W
473
W
338,376
338 376
1
3 3,580
4
9,391 1 950
34
43716
12,132430
40137
52,300,077
9,283,844 18 F 079 27
1 ,193
2,4'11,062
3 # 602 1 255
2 1 569 2 508
1
3
1
9
1 9,498
$ 1421O
$ 31,541,166
$ 45,75'1,502
The accompanying Notes to F inancial Statements are an integral part of these statements.
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CITY OF EDGE 1ATE , FLORIDA
Assets:
Cash and cash equivalents
Receivables, net
Inventories, at cost
Clue from other governments
Due from other funds
Special assessments receivable
Land held for resale
Total A sset s
Liabilities an d F und Bal ances :
Accounts parable
Accrued liabilities
D to o ther governments
D to other funds
Deferred revenue
Unearned revenue
Total Liabilities
Fund balances:
Reserved:
Inventories an d prepaid costs
Debt service
Unreserved, reported in:
Genera fund
Special revenue funds
Capital projects fun ds
Total fund balances
CE SHEET
GOVERNMENTAL FUNDS
September 3, 2005
Other Total
Debt Governmental Governmental
1 . — —1 — T^_ _ A-
1, 7 ,203 255 2 $ 4
123,316 - 123,31
32 - 32
72 ,531 - 72531
1 1 1 90 352 - W 1 , 1 9%352
- 2 2,31 3,919
$ 562,043 -
6 1,390 323,438
18 -
18,566
3 -
- 3,'171
1,320,711 -
- 1,320,711
- 2
- 2,33
473
. 473,001
2 2,313,919
61, 4 93
32 - 32,555
255 ` 255,589
1,199,333 - 1 , 199,383
1 1
A A A nn w * ^ A A
s f �v s v1JL! .,+f r uVU - 7V4{L+1!
Total Liabilities and Fund
Balances 3,609 $ 2 2 0,479
Amounts reported for governmental activities in the statement of net
assets are different because:
Capital assets used in governmental activities are not financial resources
and, therefore are not reported in the funds
Investment in joint venture is not a financial asset and therefore is not
reported in the funds
Other l ong-term assets are not ava ilable to p a ir for current period
expenditures and, therefore, are deferred in the funds
Long -terra liabilities are not due and parable in the current
period and therefore are not reported in the funds
Net assets of governmental activities
19,141,076
32, 933
2,313,919
11 f o1,25
14,210,336
The accompanying Notes to Financial State are a integr part of these stateme
1
CITY F EDGEWATER, FLORIDA
STATEMENT OF REVENUES EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
For The Year Ended September 3, 2005
Revenues:
Taxes
Licenses and permits
Inter ovemmental revenues
Charges for services
Fines and Jorfeitures
Impact fees/special assessments
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation/public works
Leisure services
Debt service:
Pdncipal retirement
Interest and fiscal charges
Capital outlay:
General government
Total expenditures
Excess (Deficiency) of
Revenues Over Expenditures
Other Financing sources (Uses)
Transfers In
Transfers out
Net other financing sources
(uses)
Not Changein Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
3, 4, 551 , 3 ' 596,151 1,149
1
353,429
Other
Total
(495,10 N
!Y I rTl
Debt
Governmental
Governmental
General
Service
Funds
Funds
1 84 1 44
-
W
81840,044
657,920
--
1,651,5852,417
657
2,700
-
326,163
3,032,676
305,320
305
104
48,215
153,178
101,853
420,885
532
1
14,231
159,693
15,928
189,852
325,512
842
328,354
11,052
580 * 578
923
12,580,915
21716,664
-
-
2
51808,488
-
157,681
519001 109
450,738
-
450,738
1,449,505
-
1409391
1 t 595,890
881,354
573,550
-
1,555
70,755
2392577
31 0,433
3 101
23 181
11,377,505
913,327
3271233
12,618 + 055
3, 4, 551 , 3 ' 596,151 1,149
1
353,429
14,397
11788,326
(495,10 N
!Y I rTl
(13,153
(41 8 t 253
11015,400
353
1 ,244
1 ,379,973
700,849
20,080
597,395
1,318,924
,089
234,909
1,651,5852,417
x 531
$ '1 1 231,938
255,589
2
$ 3,7360,607
The accompanying Notes to Financial Statements are are integral part of these statements.
17
CITY of EDGEWATER, FLORIDA
RE CONCILIATION of THE STATEMENT OF REVENUES
E XPENDITURES, AND CHANGES 1 1 FUND A AI IC S of
GOVERNMENTAL FUNDS To THE STATEMENT OF ACTIVITIES.
For The Year Ended September 30, 200
Amounts reported for the governmental activities in the statement of
activities (page are different because:
Net change in fund balances - total governmental funds (page 1 1 X8
8,92{4
Governmental funds report capital outlays as expenditures. lowever, 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. (472,419
The net effect of various transactions involving capital: a set (i.e, sales,
trade -ins and transfers to proprietary funds) is to decrease net assets. (5
FEMA revenues reported in the funds in the current year must be
eliminated from the statement of activities since revenue was (279,077)
recognized in a prior year
The issuance of long -term debt provides current financial resources to
governmental funds, while the repayment of the principal of long -tern
debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net assets. This
amount is the net effect of these differences in the treatment of
long -term debt and related items. 1 04
Special assessment revenue reported in the funds in the current
year must b e eliminated from the statement of activities since
revenue was recognized in a prior gear. (420,885)
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 governmental funds.
Change in net assets of governmental activities (page 1 1 2 437,383
The accompanying g Notes to Financial Statements are an integral part of these statements.
This page intentionally left blank.
l,."
CITE' OF EDGEWATE , FLORIDA
GENERAL AL FU D
STATEMENT REVENUES, EXPENDITURES BIND CHANGES I
FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended September 3, 2005
Revenues:
Takes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Impact fees /special assessments
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation/public works
Leisure services
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
31047,326
3
2, 71 6,664
Variance With
5 6,960
5,720,673
5,303,488
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative
$ 6,317,671
5,817,071
6,846,644
23,973
585,350
585,350
657,920
72,570
2
2,205,219
2
500,294
253,200
251 ,300
305,320
53,526
182
183
104,961
(78,439)
10500
10,500
101 ,353
91,353
50,000
50,000
14,231
(35,760)
131,200
131,200
325,512
194,312
1016%910
10,236,140
1 1,062,054
326,814
31047,326
3
2, 71 6,664
326,868
5 6,960
5,720,673
5,303,488
(07,815)
786,030
785810
450,733
335,072
1,934,139
1, 502 754
1 1 449, 505
143,249
831,355
881 ,355
881,354
1
77,520
77,520
70,756
0
12
12 t 644
1'1,377
724,139
Over Expenditures (1 1 t 665,504 (314,551 ) '1,550,953
Other Financing Sources (Uses)
Transfers in
11670,500
1,556,500
1,420,500
(238,000)
Transfers out
(353,429)
(352,879)
(405,100)
(42,221)
Sale of land held for resale
1
1,300,000
-
(1,300
Net other financing sources (uses)
2,617,07 1
2,505,621
1,015,400
{1
Net Change in Fund Balance
834,642
730,117
700,840
(29,268)
Fund Balances - Beginning
531,689
531,089
5311089
Fund Balances - Ending
$ 1,365
$ 1,251
1,231
$ (29263)
The accompanying Notes to Financial Statements are an integral pant o f these statements.
19
CITY O E DGEWATER, FLORID
STATEMENT NET ASSETS - PROPRIETARY Fu Ds
September 3 2005
Assets
C urrent a ssets:
Cash and cash equivalents
Receivables, net
Special assessments receivable
Due from ether g ove . rnment s
Due from other funds
restricted cash and cash equivalents
Taal current assets
Noncurrent assets:
Restricted ted cash and cash equivalents
Restricted investments
Special assessments receivable
Band I ssuance costs
Capital assets:
L an d, b and equipment
Construction in progress
L ess accumulated depreciation
Tota capital assets ne of
accumu lated depreciation)
Tot noncurrent assets
Total assets
The accompanying panyin Notes to Financial Statements are a n integral part of these statements.
Other
Water an
Refuse
B usiness -Type
Sewer
Collection
Funds
Total
381
$
-
381,973
780
231
121 ,191
1
1
-
,»
'1, 360, 912
-
1
1,836,651
392,695
-
1,329,711
1,713,406
1,022
-
1,022
3 w 938, 895
2,968 1 456
1,441,902
7,449,163
-
1
'1, 517,
1 , 156 , 046
-
1 t 156,046
7, 294 l 743
-
W
7 1 294 2 743
228,707
-
3,272
231
67,636
1
6t215272
76, 687 541
642
230,
872
17,954
wwewew�
L 0;676L
�. 1,2 592 1 893
6,317,719 -
66
464 3 232
4
55,642
59,604
464,232
6,373,736
65,842,697
62
2
7,819,638
73
The accompanying panyin Notes to Financial Statements are a n integral part of these statements.
Noncurrent liabilities.
Revenue bonds parable
10,561
252,400 3 1172,031
Other
State revolving loan
11,975,569
Water and
Refuse
Business-Type
6,094,924 180
28,402
Sever
Collection
Funds
Total
Liabilities
Total noncurrent liabilities
32,530 130
12369 # 859
34
Current liabilities.
36,558 2
2
41
Accounts payable
82,946
11504,735
16,025
1
Accrued liabilities
4
51560
1
11,999
Retalnae payable
-
56
56,992
Compensated absences
295,634
91,459
39
426,514
Due to other funds
-
397,051
+'
1,185,996
1
Customer deposits payable
728
-
-
728,725
Capital leases payable - current
1912543
31
17,589
290,235
Notes payable - current
614,000
-
293,560
997,559
Revenue bonds payable- current
4502000
-
-
450,000
State revolving loan- current
1
-
`
1,322,785
Accrued interest payable
338 # 376
-
-
338,376
Total current liabilities
4,028,647
21979,908
1 ,611
7
Noncurrent liabilities.
Revenue bonds parable
10,561
252,400 3 1172,031
1 0,561,773
State revolving loan
11,975,569
-
11,975,560
Capital Lease
6,094,924 180
28,402
8
Notes payable
3,898,000 w
1
5
Total noncurrent liabilities
32,530 130
12369 # 859
34
Total liabilities
36,558 2
2
41
Net Assets
Invested in capital assets, net of
related debt
15,216,648
252,400 3 1172,031
18,641,079
Restricted.
Capital projects
-
21411,062
2
Debt service
1 ,1 K046
-
111 56,046
Unrestricted
19, 9'11, 935
69,651 X748, 608
9
Total net assets
26,384
322,951 4
$ 31,541,106
21
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CITY OF EDGE 1 T R F LORIDA
S TATEMENT OF REVENUES EXPENSES AND CHANGE
IN FUND NET ASSETS - PRO PRIETARY FUNDS
Fo Th Year E September 3 , 2005
O perating Revenues
User charges
Op erating Expenses
Salaries and benefits
Materials and supplies
Depreciation an amortization
Contractual Services
Total operating expenses
Operating income (less)
onoper ti Revenue (Expenses)
Grant revenue
Investment income
Interest e
Total neneper tin revenue (expense)
Less before contributions and transfers
Capital contributions:
Fees an assessments
Transfers in
Transfers out
Change in net assets
Total Net Assets - Beginning
Total Net A ssets - Ending
Other
Water and Defuse Business -type
Sewer Collection Funds Total
6 1 11 2 * 32 6 $ 21 085,965 1 1 136,919 9,335,210
2,489
98%950
433,552
3,903
1
98,143
104,448
1
1,079
107,484
23
2
180,098
1 1 637, 303
412,183
2
5
2
1
19 # 09 , 28
230 a .............................. .. t 2
VV qVV 4 18
27,321,879 266,799 4 3 ,117,190
20 384,030 322 4 31 } 541 ,1860
The accompanying Notes to 'i cial Statements are an integral part of these statements.
22
1
12 4� 18
446,457
4
8 {
90 T 486
537
_ , 1 1 404 t
/
� # R M �
( 1 0 1 J 86)
r
( 15161 49 ?)
(958,991)
1
--1-- 1 1 - 1 1 300 J ..
245,77
770)
369,252
(57,292)
(424,642)
204,980
1
I ,218 9'
898 k81
308
1 1 1
/
KI 131 31354)
QQ
4w 94 [[ )
i w
9 918ti11{
rww�•w ww�wYwYwww'wr+w
1 ; 44
_wvwvwL
(937,249)
68
294,973
7 r 4)
27,321,879 266,799 4 3 ,117,190
20 384,030 322 4 31 } 541 ,1860
The accompanying Notes to 'i cial Statements are an integral part of these statements.
22
CITY OF EDGEWATER, FLORIDA
STATEMENT OF CASH Flows
P ROPRIETARY FN H S
For The Year Ended September 30, 2005
Cash Flows from Operating Activities:
Receipts from customers
Payments to suppliers
Payments to employee
Net cash provided (used) by operating
activities
Water and
Sewer
Other
Defuse Business
Collection Funds
Total
Gash Flows from Non- Capital
Financing Activitle w
(Increase) in due from other funds
Increase (decrease) due to other funds
Increase In due from other governments
Grant revenue
Operating transfers in
Operating transfers out
Net cash provided (used) by non -
capital financing activities
Cash Flows from Capital and Related
Financing Activities:
Proceeds from sale of capital assets
Acquisition of capital assets
Principal paid on long -term debt
Interest paid on long -term debt
Fees and assessments received
Net cash provided (used) by capital
and related financing activities
6,400,032 $'1,960,187 1 t 989,636 9 1 449,855
(1,846 (2,785 # 471) (1,314,918) (5,947,327)
L9 454,395) (3 ,844,97 8)__
2 _1,794,21 ): .. 2 )-
(392 -
848,169
455,974
397
(1
(923,680)
- 466,538
466,638
1,224,518
-
1,224,518
898,817 -
308,354
1
'fi , 31 1 354 294, 000
969,
577,
4 - 80 ,2 1,794,107 '1,133,678)
603 883
(785, 249) (254, 899) (238,120) (1,270,268)
(2,326536) (77,855) (295,429) (2,839,820)
{1 x 299 1 752} 11 ,298) (190,494) (11402,454)
1 t 265,988 U13,711 2,279,879
. (3,35,90 8 _ . 34,1 387,888 ...
Cash Flows from investing Activities:
Purchase of investments (23,022) - (23,022)
Investment income 446,457 814 90,486 537,757
Net cash provided by investing activities 423 814 99 # 486 514,735
Net Increase (Decrease) in Cash and
Cash Equivalents
Cash and Cash Equivalents - Beginning
Cash and Cash Equivalents . End
Classified As.
Cash and cash equivalents
Restricted cash and cash equivalents
Total
(1,388,264) (343, 253) (1,335,101) (3,066,618)
2 343,253 2,852,528 8
$ 1,404,295 $ ft $ 1,517A25 $ 2,921 t 720
$ 331,973 $ - $ 381,973
1,922,322 - 1,517,425 21539,747
1,404,295 $ $ 1,517 * 425 2,921
The accompanying Notes to Financial Statements are are integral part of these statements.
23
Change in Assets and Liabilities;
(Increase) decrease I n accounts receivable
20
Other
(47,283)
Q
W ater an d Refuse
B usiness - typ e
7,142
Sewer Collection
Funds Total
R of Op Income
(Decrease) in accounts payable
(131,826)
(Loss) to Net Cash Provided (la
(737,220)
1 ,811,13
By operating Activities
-
-
Operat income (loss)
230,399 ( l
�4 k AL
Adjustments Not Affecting Cash,
2,609
894
D an d a MDrt ization
1,679,234 107,484
232 2,019,356
Change in Assets and Liabilities;
(Increase) decrease I n accounts receivable
20
(125,778)
(47,283)
31,505
D ecrease in p costs
7,142
115
7,257 '
(Decrease) in accounts payable
(131,826)
(942,140)
(737,220)
1 ,811,13
(Decrease) in reta i nage parable
-
-
(61,067)
(61,067
Increase in accrued liabilities
4,583
2,609
894
3,091
Increase In cust orner deposits
83J40
-
-
83,140
Increase (d ecrease) in accrued
compensated absences
54 J
1 8,413
21,73
50,872
Total adjustments
1,901,040
t 2
33�
327
Net Cash Provided(Used) by perarting
Activities
_ 2,131,4 - - - - - --
(1I 794 212212
�
--------- @'9,77_
$ 3,49
Non- F inancing Activities
Water meters acquire through capital
lease agreement
$ 6,124
6,124,
24
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CITY OF EDGEWATER, FLORIDA
STATEMENT OF FIDUCIARY ET ASSETS
F IDUCIARY FUNDS
September 3, 2005
Assets;
Investments, at fair value
Debt mutual funds
Equity mutual funds
Total investments
Total assets
Liabilities:
Accounts payable
Net Assets:
Held in trust for pension benefits
Total Employee
Pension Funds
11
10
21 ,524
21
1.034
21,523,725
The accompanying Notes to Financial Statements are an integral part of these statements.
25
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CITY OF E GE 1lATE , FLORID
STATEMENT of CHANGES IN FIDUCIARY ET ASSETS
FIDUCIARY FUNDS
For The Year Ended September 30, 2005
Investment income',
Net increase in fair value of investments 1,7 79
Net investment income 1
Total additions 3
Deductions:
Benefits/distributions 707,901
Administrative expenses 84,757
Total deductions 792,658
Change in Net Assets 21811,882
Net Assets - Beginning 18
Net Assets - End 21,523,725
The accompanying Notes to Financial Statements are an integral part of these statements.
c
Total Employee
Pension Funds
Additions*
Contributions:
Employer
$ 1 x o t 98
Plan members
228,287
State
191,058
Total contributions
1
Investment income',
Net increase in fair value of investments 1,7 79
Net investment income 1
Total additions 3
Deductions:
Benefits/distributions 707,901
Administrative expenses 84,757
Total deductions 792,658
Change in Net Assets 21811,882
Net Assets - Beginning 18
Net Assets - End 21,523,725
The accompanying Notes to Financial Statements are an integral part of these statements.
c
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NOTES TO FINANCIAL STATEMENTS
This page intentionally left blank.
CITY OF EDGEW T E , FLORIDA
NOTES To FINANCIAL STATEMENTS
September 30, 2005
Note I - summary of significant Accounting Policies:
A. Reportin Entit
The city of Edgewater, Florida (the city) is a political subdivision of the state of Florida located
in Volsia County. The City of Edgewater was originally incorporated under the general laver
on October 20, 1024, "Munici al Charters' Volume 4, page 117. The City became the city of
Edgewater when its initial charter was adopted by chapter 275.32 special Acts of 1051. The
legislative branch of the City is composed of a Mayor and four member elected council.
The City council is responsible for the establishment and adoption of policy, The execution of
such policy is the responsibility of the Council appointed City Manager.
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 l benefits to, or to impose
specific financial burdens on, the primary government. A primary government may also be
financially accountable for governmental organizations ations 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; o c is obligated in some manner for the debt of the organization. In applying
the above criteria, management has determined that there are no components units to be
included within the reporting entity.
C ITY Y F EDGEWATER, FLORIDA
NOTES TO FINANCIAL, STATEMENTS - continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (continued):
B. Government-Wide and Fund Financial S
The government-wide financial statements i.e., the statement of net assets and the
statement of changes i n net as report information on all of the nonfiduciary activities of
thCity. e ..For the m m s't part, r p, .pf ..i.p rfund ctivi ,ty bee removed from these
statements. Govement activities, �rhich nor 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 e of a given
function or segment are offset by program reve Direct expenses are those tha are
clearly identifiable with a specific function or segment. 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 o r segment and grants and
contributions that are restricted to meeting the operational or capital requirements of
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements a r e 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 uremen Focus., Basis of A ccounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the 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 tinning of related cash flogs. Property
taxes are recognized as revenues in the year for wh ich they are levied, Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
M
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (Continued).-
C. Measurement Focus, Basis of Accounting, and Financial Statement Pre en a ion
( Continue d)
Governmental fund financial statements are reported using the current financial resource
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 government 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 only when payment is
due.
Property taxes, franchise takes, 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. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and .available
only when cash is received by the City.
The government reports the following funds:
a' Goverinme tall Funds
The General Puna is the government'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 Debt Service Fund was established to account for the accumulation of
resources for, and the payment of principal and interest on certain long -term debt.
29
CITY OF EDGEWATER, FLORIDA
Nos TO FINANCIAL STATEMENTS - continued
September 30 200
Note I - summary of significant Accounting Policies (Continued):
C. Measurement , urement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Non -Ma *or Governmental Fund TY es
Special Revenue Funds account for specific revenue sources that are restricted by
lave or administrative action to expenditures for specific purposes.
Capital Proj Fund account for financial resources se for the acquisition
or construction of major capital facilities.
Major Proprietary Funds
Water and Serer Fund is used to account for the operations of the city's water and
wastewater systems, which are financed in a manner similar to private business
enterprises, where the costs, including depreciation, of providing services to the
general public on an ongoing basis are financed primarily through user charges.
Refuse Collection card is used to account for the fiscal activities of the City's refuse
collection and disposal operation.
Non-Major Funds
Stormwater Management Fund is used to account for the fiscal activities of the City's
stormy ater drainage operation, as well as the funding and payment of related debt.
Water and Sewer Development Fee Fund and the Renewal and Replacement Fund
account for amounts reserved for s pecific enterprise activities.
Fidciay nd
Pension Trust Funds account for activities of police officers, firefighters and general
employees retirement plans which accumulate resources for pension benefit
payments to qualified employees.
Frigate- sector standards of accounting and financial reporting issued prier to December 1,
1989, generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of
the Governmental Accounting Standards Board. Governments also have the option of
following subsequent private- sector guidance for their business-type activities and
enterprise funds, subject to this sane limitation. The g overnment has elected not to follow
subsequent private- sector guidance.
Of,
CITY of EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of significant Accounting Policies (continued):
C. Measurement Focus, Basi's of Accounting, and Financial Statement re erg is rr -
(Continued)
As a general rule the effect of interund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are other charges between the
City's water and serer function 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, including special assessments. internally dedicated resources are
reported as general revenues rather than as program revenues. Likewise, general
revenues include all takes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund's principal ongoing ng o perat ions.
The principal operating revenues of the City's water, server and stormwater utility funds are
charges to customers for sales and services. The city also recognizes as operating
revenue the portion of tap fees intended to recover the cost of connecting new customers to
the system. Operating expenses for enterprise 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 nonoperating revenues and expenses,
When both restricted and unrestricted resources are available for use, it is the government's
policy to use restricted resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand,
demand deposits, and short -term investments with original maturities of three
months or less from the date of acquisition.
Investments of the city are reported at fair value. The City's investments consist
of investments authorized per their investment policy adopted in accordance with
Section 218.415, Florida Statutes. The city implemented Governmental
Accounting standards Board GAS Statement Igo. 40, Deposit and Investment
Kish Disclosures, for fiscal year 20D5. The effect of this statement is the
inclusion of new disclosures for deposit and investment risks.
31
CITY OF E GEWAT R, FLORI
N OTES To F INANCIAL STATEMENTS - continued
September 30, 200
Note 1 - summary of significant Accounting Policies (Continued):
Assets,, Liabilities, and Net Assets or Equity - (Continued)
2. Receivables and P a y ab l es
Ac tivity between funds that are representative f...... ndin rr.p ir�g
. . arrangements outstanding at the end of the fiscal year are referred to as either
"due to /from other funds" i.e., the current p of interfund loans o
"advances to from other funds" i.e., the n on - current portion of interfund loan
All other outstanding balances between funds are reported as `due to/from other
funds.' Any residual balances outstanding between the governmental activities
and business -type activities are reported in the government -wide , financial
statements as "Internal balances ".
Advances between funds a reported In the fund financial sta are offset
by a fund balance reserve account In applicable governmental funds to indicate
that they are not available for appropriation and are not expendable available
financial resources.
All receivables are shown net of an allowance for uncollectibles. The county
bills and collects property takes and remits them to the city. City property tax
revenues are recognized when levied to the extent that they result in current
receivables.
All property is reassessed according to its fair value on the lien date, or January
of each year. Taxes are levied on October 1 of each year. Discounts are
allowed for early payment at the rate of o in the month of November, 3 in the
month of December, 2% in the month of January, and I % in the month of
February. The takes paid In Ma are without discount. All unpaid taxes
become delinquent on April 1 following the year in which they are assessed. on
or around May 31 following the tax year, certificates are sold for all delinquent
taxes on real property.
3. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out FIFO method.
od.
Inventories of governmental funds are recorded as expenditures when
consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items in both government -wide and fund financial
statements.
32
CITY OF EDGEWATER, FLORIDA
NOTES To FINANCIAL STATEMENTS - Continued
Septem 30, 2 005
Note I - Summary f Significant Accounting Policies (Continued):
D. ,assets, Liabilities, and Net Assets or Equity - (Continued)
Restricted assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain
resources set aside for their repayment, t, are classified as restricted assets on the
balance sheet because they are maintained in separate bank accounts and their
use.,is limited by applicable bond covenants. Assets so designated are identified
as restricted assets on the balance sheet.
5. Capital assets
Capital assets, which include property, plant, equipment, and infrastructure
assets e.g., roads, bridges, sidewalks, s, and similar items), are reported in the
applicable governmental or business -type activities columns in the government-
wide financial statements. Capital assets are defined by the City, in accordance
with Chapter 274.02, Florida Statutes, as assets with an initial, individual cost of
50 or more and an estimated useful life in excess of one year. Such assets
are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value
at the date of donation.
Pursuant to GASB GAS Statement No. 34, an extended period of deferral F1 2007)
is available before the requirement to record and depreciate infrastructure assets
(e.g. roads, bridges, side walks and similar item acquired before the
implementation date becomes effective. The City currently intends an early
implementation of this requirement. Infrastructure acquired prior to October 1 ,
2002 has not been recorded for governmental activities.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized.
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,
33
CITY OF EDGEWATER, FLORIDA
NOTES To FINANCIAL STATEMENTS - continued
September 30 200
N ote 1 - su mmary of Sig Accounting P (c on t inue d):
D. Assets, Liabilities, and Net Assets or uity - (Continued
5* Capital assets - (continued)
C p l....a� t the City... r ..depreciated using the.. straight line method over the ...... .. . ..... . . ...
following estimated useful lives:
Assets
Years
Buildings
10 -0
Improvements
15-50
I nfrastructure
30-0
Equipment
3-15
6 . compensated absences
It is the City's policy to permit employees to accumulate earned but unused
vacation and sick pay benefits. Since the City's policy is to pay both vacation
and sick pay when employees separate from service, all vacation and sick pay is
accrued when incurred in the government -guide and proprietary fund financial
statements. A liability for these amounts is reported i govern funds only
if they have matured, for example, as a result of employee resignations and
retirements. For governmental activities, compensated absences are generally
liquidated by the general fund.
7. Long -term obligations
In the government -ride 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 assets. Bond premiums and
discounts, as well as issuance costs, 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. Woad issuance costs are reported
as deferred charges and amortized over the tern of the related debt.
In the fund financial statements, gover fund typos recognize bond
premiums and discounts, as well a bond issuan 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.
34
CITY O F E GEW TEf , FLORID
NOTES To FINANCIAL STATEMENTS - Continued
Se ptember 30, 2005
Note I - Summary of Significant Accounting Policies (continued):
D . Assets, Liabilities, and Net Assets o Equity Continued
8. Fund equity
In the fund financial statements, g overnmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally
restricted b y outside parties for use for a specific purpose. Designations of fund
balance represent tentative management plans that are subject to change.
Note 2 - Reconciliation of Government-Wide and F und Financial statements:
A. Explanation natlo of certain Differences Between the Governmental Fund statement o
Revenues, Expenditures, and Changes in Fund Balances and the Govemment-Wid
Statement of Activities
The governmental fund statement of revenues, expenditure, and changes in fund
balances includes a reconciliation between net changes in fund balances - total
govemmental funds and changes In net assets of govemmental activities as reported in
the government -wide statement of activities. One element of that reconciliation explains
that `Governmental funds report capital outlays as expenditures. Ho wever in the
statement of activities the cost of those assets is allocated over their estimated useful lives
and reported as depreciation expense. " The details of this 7,1 difference are as
follows:
Capital outlay 572 1 966
Depreciation expense (1 ,0 45 ,385 )
Net adjustment to decrease net changes in fund balances
total govemmerr al funds to arrive at changes In net
assets of over mental activities �
35
CITY of EDGEWATER, FLORIDA
NOTES To FINANCIAL STATEMENTS - continued
September 30, 2005
Note 2 -- Reconciliation of Govern m -Wide and Fund Financial Statements (Continued)*
A. Explanation of Certain Differences Between the Governmental Fund Statement
Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide
Statement f Activities (Continued)
I otl r l meat . of that reconciliation states that "the issuance of long-term debt (e.g
v.... ........... .................I............. v............._...._..._ ._........I -.._ ...................... ............................... v.._...._.._..........:...
bonds, leases) provides current financial resources to governmental funds, while the
repayment of the principal of long -tern debt: consumes the current financial resources of
governmental funds. Neither transaction, ho wever, has any effect on net assets. The
details of this $1 ,555,004 difference are as follows:
Principal repayment $1,555,00 4
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net assets of
g overnmental activities
Another element of that reconciliation states that icSorne expenses reported in the
statement of activities do not require the use of current financial resources and therefore
are not reported as expenditures i governmental funds.' The details of this difference are
as follows:
Compensated absences $(171 # 448)
Decrease in investment in joint venture (86 ,778)
Net adjustment to decrease net charges in fund balances
total govemmental funds to arr*ve at charges in net assets of
governmental al ac ivit es $(258
Note 3 - Stewardship, Compliance, and Accountability:
A. Appropriations in excess of Funds Available - Appropriations in 2005 for Recreation
Impact Fees special revenue Fund were in excess of anticipated revenue and prier years
fund balance. Appropriations totaled $302,695 while anticipated revenue and prior years
fund balance totaled $302,612.
B. Budget Ar en ments Not Approved - During 2005, the Grants Special Revenue Fund
was set up by moving budget amounts for revenue and expenditures from the General
Fund and the Recreation impact Fees Special Revenue Fund to the Grants special
Revenue Fund. Total appropriations for the General Fund decreased and Grants Fund
appropriations increased by the sane amount. In addition, transfers out of Recreation
Impact Fees Special Revenue Fund were charged by same amount as transfers in the
Grants Fund. The net amount of these transactions did not increase total appropriations
of the City's governmental funds for fiscal year 2005, however, they should have been
authorized by the city council.
C
CITY OF EDGEWATER, FLORIDA
NOTES To FINANCIAL CIAL STATEMENTS - Continued
September 30, 200
Dote 3 - Stewardship, Compliance, and Accountability (Continued):
C. Deficit Fund Equity — The Story water Management Fund has a deficit unrestricted net
asset balance of $748,608 at September 30, 2 005.
D. Budgetary Information -- The City follows these procedures in establishing the
budgetary data reflected in the financial statements:
1 Prior to the end of the fiscal year, the City Manager submits to the City Council a
proposed operating budget for the fiscal year commencing the following October
1, which includes proposed expenditures and the means of financing them.
(2) Budget workshops are scheduled by the City Manager as needed.
(3) The general summary of the budget and notice of public hearing is published in
the local newspaper.
(4) Public hearings are conducted to obtain taxpayer comments.
(5) Prior to October 1, the budgets are legally enacted through passage of an
ordinance.
( 6) The City Manager is authorized to transfer budgeted amounts within and
between divisions and departments; however, any revisions that alter the total
appropriations of any fund must be approved by the City Council.
( 7) The level of Classification detail at which expenditures may not legally exceed
appropriations is the fund level.
(8) Appropriations lapse at the close of the fiscal year to the extent they have not
been expended.
( 9) Budgets are adopted for the General Fund, Special Revenue Funds, Debt
Service Funds and the Capital Projects Fund on basis consistent with generally
accepted accounting principles. Budgets are also adopted for the enterprise
funds: however, these data are not presented under generally accepted
accounting principles.
(10) The City Council may make supplemental appropriations in excess of those
originally estimated for the year up to the amount of available revenues.
Budgeted amounts presented in the accompanying financial statements have
been adjusted for le authorized revisions.
CITY OF EDGEW TER, FLORI
NOTES TO FINANCIAL STATEMENTS - Continu
September 3, 2005
Nate 4 - Cash a nd Inv estme nts:
Deposits - At year-end, the carrying amount of the City's deposits was $ ,737,746 and the
bank balance was $1 ,948,257. Petty cash fund of $1,750 are not on deposit with a financial
institution. All bank deposits we fully covered by federal depository insurance or by
collateral held in bars that are members of the state of Fl dda's Collateral Pool as specified
under Florida law. Florida statutes provide for collateral pooling by bank and savings and
...................................................................... ............................... :...... ............................. ............................... .
loans. This riritsal rrnrnt deps it t 'authorized dpsitris�.
Investments - The City's investment policies are governed by State Statutes and City
ordinances and do not apply to pension funds. City ordinance allows investments in any
financial al institution that is a qualified public depository o f the state o f Florida as identified by
the state Treasu i accordance with Chapter 280 o the Florida statutes. Au thorized
investments are:
1. The Local Government Surplus Funds Trusts (SBA)
2. SEC registered money m arket funds with the highest credit quality rating from a
nationally recognized rating agen
& Interest - bearing time deposits or savings accounts in qualified public depositories
a s defined in section 280.02
4 . Direct obligations o the J.S. Treasury
5 . Federal agencies and instrumentalities
6 . securities o o r other interests in, any open -end o closed -end management-type
investment company or investment trust registered under the investment Company
Act of 1940
Other investments authorized by ordinance.
The SBA is not a registrant with the securities and Exchange Commission (SEC),
however, the Board has adopted operating procedures consistent with the
requirements far a 2a-7 fund. Therefore, the pool account balance can be used as
fair value for finan ial reporting..
Investments of the defined benefit pension plans consist principally of debt and
equity mutual funds, all o whi are authorized by the plans.
W
CITY OF EDGEWATER, FLORIDA
MOTES TO FINANCIAL ST T 1 TS - Continued
Year Ended September 36, 2005
Nate 4 - and Investments (Continued):
Investments made by the city of Edgewater at September 36, 2006 are summarized
below. Defined benefit pension plan investments, other than $10,256,313 ire mutual
funds investing in equity securities, acre included below. In accordance with GASB 31,
investments are reported at fair value.
Investment Fair value Credit Rai Weighted
,average Maturity
( Year s)
S Government Securities
$ 1, 156,046
ILIA
< 90 days
State Board of Administration
6
Unrated
< 90 days
Pension Plan Investmer t&
SunTrust Retirement High
Grade Bond Fund
1 1 622,709
AAA
T20
Principal Global Investors (POI)
Bond & Mortgage Fund
8,776
AA
6.96
POI Inflation Protection Fund
5610659
AAA
10.66
Spectrum Preferred
Securities Fund
3450975
A
<90 days
Post Advisory Group
High Yield Fund
562,199
I .g.4
B
6.61
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, issued, instrument, dealer or bank through which financial instruments are bought and
sold.
Custodial credit Risk:
In the case of deposits, this is the risk that in the event of a bank failure, the city's deposits may
not be returned to it. The city's investment policy requires that bark deposits be secured as
provided by chapter 266, Florida Statutes. This law requires local governments to deposit funds
only in financial institutions designated as qualified public depositories by the chief Financial
Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial
institution pool with the ability to assess its member financial institutions for collateral shortfalls if a
default or insolvency has occurred. At September 36, 2666, all of the city's bank deposits were in
qualified public depositories.
39
CITY OF EDGE ATE , FLORI
NOTES TO FINANCIAL STATEMENTS w Continued
Year Ended September 30, 2005
Note 4 - Cash and Investments (Continued):
Custodial Credit Risk Continued
For an investment, ent, this is the risk that, in the event of the failure of the counterparty, the
government will not be able to recover the value of its investments ents or collateral securities that
are in the possession of an outside party. At September 3 , 2005, none of the inves
listed are exposed to custodial credit risk because their existence is not evidenced by
securities that exist in physical or boob entry form.
Concentration of Credit list:
The City's investment policy requires diversification, but does not specify limits on types of
i
ents.
Interest Rate is:
The City's investment policy does not specifically address interest r r * however the
general investment policy is to apply the prudent- person rule: Investments are made as
prudent person would be expected to a ct, 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 Arles by ingesting pdmarily in pooled investments that have
weighted average maturity one year or less, with a special provision a llowing up to % of the
investment portfolio to have a maturity of not more than five years,
Note 6 - Receivables*
R eceivables as of year end for the City's individual major funds, and nonmajor funds in the
aggregate including the applicable all for uncolle accounts, are as follo
Water and
Refuse
Nonmajor
General Sewer
Collection
Proprietary
Fund Fund
Fund
Total
Receivables:
Accounts $171,301 $845,145
$251,262
$13 , 749 $1
Less allowance for
ncollectible accounts 4 .�.. (6
�1 � '
(10 558) .. 1 2,242
$121.191 $j
F4 11]
CITY F EDGEWATER, FLORIDA
NOTES To FINANCIAL STATEMENTS - Continued
Se ptem ber 30, 2005
N ote 6 - Capital Assets:
Capital asset activity for the year ended September 80, 2005 was as follows:
Governmental al ao ivf ie :
Capital assets, not being
depreciated:
Land
Construction in progress
Total capital assets, not being
depreciated
Capital assets, being depreciated
Buildings
Improvements
Machinery and equipment
Infrastructure
Total capital assets, being
depreciated
Less accumulated depreciation for:
Buildings
Im provements
Machinery and equipment
Infrastructur
Total accumulated depreciation
Total capital assets, being
depreciated, net
Governmental activities capital
assets, net
Beginning Ending
Balance Increases Decreases Balance
3
--
W
$ 3
2
327
(421
-- 2 065.
. , 39
327,011
4 1,7
5,844,
4,357
-
-
4
14, 537, 389
424
-
14
8, 620 $ 881
221
(353,013)
3
829,228
2,5
�-
851 ,E
23,345
667,732
- - . ( 353,
2 3 2 . 659,827
(1 ,601,178)
1 24,988)
--
(1,726, 160)
(5,630
(592,277)
--
(6,223
( 2 1 396 ) 655)
(300, 356)
347,
(2
(30,486)
. (27
-
(04,250)
(9
(1 y 045, 385)
347 y 07i
10, 303 4 '2)
13 (377,65x) Y..�......YY.. ....131
$ 19.61 433 50 C42) -.027. ) $
41
CITE O F EDGEWATER, FLORI
NOTES TO FINANCIAL STATEMENTS - Contin
September 3, 2005
Note 6 - Capital Assets (Continued):
Business -type activities;
Capital as n being
depreciated
Land
......... .......
onstruction i n progress
Total capital assets, not being
depreciated
Capital assets, being depreciated:
Buildings
Impro
Machinery and eq uipment
Total capital assets, being
depreciated
Less accumulated depreciation for;
Beginning Fading
Balance Increases Decreases Balance
676, 827
,._. ..... ..
(8,012,857)
$ -�
676,827
2,9 10,343
978,690
(3,01 6,360),
872
3,587,170
(1
(3,016,3
1 9
22, 333, 070
-
(343)
22,332,727
39
9 1 1 41 1 127
-
48, 921, 041
2
(27,343
1 56,946
65
9
^ �7,6
......74,41.0,714
Buildings
(8,012,857)
(747,857)
343 (8,760,371 )
I mprovements
(8,754,776)
(910,049)
- (9,664,825)
Machinery and equipment
(1
(326
26 (1
Total accumulated depreciation
(18
(1
27023 (20
Total capital assets, being
depreciated, net 461. 2 7 94 0 4 663) 54
Business -type activities capital
assets, net 5 .232.897 M26 $55,642.504
Depreciation expense was charged to r ti ns /programs as follows:
Governmental activities:
General government $ 55,098
Public safety 228,557
Transportation /public works 582,688
Leisure services 284 X02
Total depreciation expense - governmental ac tiviti es $1.4.OA5.385
Business -type ac tivities:
Water and severer $1 ,844
Refuse collection 107
St rmw t r ,management 23
Total depreciation expense - business -type activities $1
W
CITY OF EDGEWATER, FLORIDA
N OTES To FINANCIAL L STATISTS - Continued
September 30, 2005
Note 7 - Leases:
Ca pital Leases - The city has entered into lease agreements as lessee for financing the
acquisition of several light and heavy vehicles such as a fire truck, police cars, refuse trucks,
tractors a nd trailers, as well as computer equipment. Also, in March of 2005 the city entered into
a lease agreement as lessee With Johnson controls, Inc. for financing the upgrade and
replacement of 12,872 grater meters. These lease agreements qualify as capital leases for
accounting purposes a nd, therefore, have been recorded at the pre s ent value of their future
minimum lease payments as of the inception date.
The assets acquirers through capital leases are as follows
Governmental Business - tire
Activities Activities
Assets --
Machinery and equipment 555, $8
Less: accumulated depreciation o 95� (95,428
Total 4 ti48`
The future minimum lease obligations and the net present value of these minimum lease
payments as of September 80, 2005 were as follows:
Governmental
Yea E er Activities
-... ._... � �Y g rr�n �mnn�nmw� �nnnnnn�
2006 $ 1
2007 107,772
2098 107,771
2009
2010
2011-2015
2016-2020 20 21
--
Total minimum lease payments 354
Less: amount representing interest (
Business -type
Activities
497,39
54j 9
547,552
476
500, 87
2,91 5,085
3 : 429 124
127.409
9041 # 845
(2
5� .54490
Operat Leases - The City has enured into an o perati ng lease for are integrated mailing
system which contains cancellation provision and is subject to annual appropriations. For fiscal
year 2005, rentals approximated $1 3,208. This lease supports governmental activities.
43
CITY OF EDGEWATER, FLORIDA
HOTS TO FINANCIAL STATEMENTS - Continued
September 30, 20
Note 8 - Long -Term Debt:
Re venue 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 amounts of revenue bonds issued in prior years is described . ..
below. Revenue bonds outstanding at year end are as follows:
Business-Type Activities
Balance
Interest Rates
Original September 30,
and Dates l l turit
Amount 2005
Water and sever
2.75-5.5
Revenue Bonds - Series 1 993
(411 & 10/1) 10/1/21
$12 10A75 ,00
Water and Sever
5.4-7.0%
Revenue Bonds - series 1991
1 & 10/1) 1011/21
_ T 635,000
Total
.$11 1 11
These Water and sever Revenue Bonds are secured by s first lien on and pledge of the net
revenues of the water and sever system and a first lien on and pledge of allowable impact
fees imposed on new users of the system.
The Mater and Sewer Revenue Bonds resolution provide for:
(7) Establishment and maintenance of various funds and accounts
(2) Restrictions on the use of cash from operations in artier 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 (116) of the interest coming due on the next semi- annual
interest payment date and one - twelfth (1/12) of the bead amortization
installment coring due during the next year;
( c ) Deposits to the reserve fund are required to make up any deficiency in
its balance as compared to the reserve equipment,
CITY F EDGEWATER, FLORIDA
IDA
NOTES To FINANCIAL STATEMENTS - Continued
September 39, 2905
Note 8 - Long -Tern debt Coinue*
Revenue Bonds - LContin
( d) Deposits to the Renewal and Replacement er ent and are required each
month in a n a mount equal to one - twelfth (1/12) of fire 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 c entum
( 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 them current period; and
(fi) 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 02 % of the instruments' face value, dependent upon the call
date.
Annual requirements to amortize a grater and serer revenue bonds outstanding as of
September 30, 2005 are as follows:
Year ending September 80
2098
2097
2098
2099
2019
2011 -2015
2016-2020
2021
Total
Business :e Aoiiiles
Principal Interest
459
$ 619, 143
479
594 # 480
500
568,763
530 1 000
540,
555
511,425
3
2
4, 300
1
1
56
�11.110.000 5.977.399
4
CITY OF EDGEWATER, FLORIDA
TES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Nate 8 - Long-Term t (Continued):
State R Fund Loans
The City financed a portion of its wastewater improvements for the Florida shores
capital improvement projects with two loans from the state of Florida Revolving Fund
loan ..p. ogr m. The City received the loans on reimbursement basis s costs wer
. .... ..... ............................ ............................
incurred. The City executed agreements with the state for these loans In the amount of
$
The State Revolving Fund S F loans are secured b a junior lien on and pledge of the
n revenues of the water and sewer system and the special assessment revenues
levied lint the benefiting property owners in Florida Shores. The ss ssrm nts are
payable over 20 years with interest of 6.007% until December 1, 1994 and of 5.35
thereafter. Since many taxpayers take advantage of prepayment discounts, actual
interest rates paid may be less than the stated amounts.
The SIF loans consist of the following:
Interest rates:
Pa yment frequency
Payment amount:
Maturity date:
Treatment Loan
8.16% to 3.78%
0 annual payments
$516A58
September 80, 2013
Collections L oan
3. to 3 .7 8 %
annual payments
$1
October 81, 2018
Annual debt service requirements to maturity on the state Revolving Fund Loan are as
follows:
Year ending S ternber 8
2008
2087
2008
2889
201
2011-2014
T ota l
Business -Type ctivitl s
ri oil i nterest
$ 1, 822 785
488,653
371 ,417
440
1
889, 599
1 117
887,821
1 ,528XO
2831
6 1 179 : 867
... 2
�88,1
CITY OF E GEWAT R, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 8 - Long -Term Debt (Cont inued) :
Notes Payabl
The City issued the following revenue notes in a prior year:
Water and sewer General Lang -term Debt
Revenue Note saves 2002 Revenue Note series 2002A
Original amount issued
Issue date
Final maturity
Inte rest due
I nterest rate
$5,'140,000
March 13, 2002
October 1, 201
Monthly
Adjusted Libor
$2
March 13, 2002
October 1, 201
Monthly
Adjusted Libor
The Water and Serer Revenue, Series 2002, notes a r e sec ured by all w ater a nd se ver
revenues of the City. hater and sever revenues include revenue fr the operatio of the
water and severer system as well as the special assessments payable to the City with respect
to water service to be provided by the City to the residents of Waterway Park.
The revenue Note, Series 2002A, is secured by a covenant to budget and appropriate from
Non-Ad V alorem funds.
Debt service requirements for these revenue notes using interest rate of 3.252% at
September 30, 2005 are:
Year Ending
Governmental Activities
Business Type
Activities
S epte m be r, 30
Princ
interest
Prime
Interest
2000
$ 254,000
57 1 821
514 2 000
$117
2007
254
49560
514 1 000
100
2008
254 x 000
41 ,300
514
3, 576
2009
254,
33,040
514 1 000
0, 80 1
010
254 , 000
24, 780
5 . 000
50
201 1-2013
� 762
� 23, 7
, 1,542
, 146
Total.
$2.02
$230
$4.11
So 0
The City also entered into an agreement to borrow money from Florida Inland Navigation
District (FIND) for land and improvements ents in a business /industrial park. The final amount of
the note payable is $5,050,567 and shall be paid in ten equal installments ents of $505,057 each
year starting August 20, 20034 For the first fire years, no interest shall accrue on the
outstanding principal balance, Starting August 26, 2007, interest shall begin to accrue on the
outstanding principal balance at an interest rate equal to interest available from the State
Board Administration (SBA).
:17
CITY OF EDGEWATER, FLORIDA
A
NOTES TO FINANCIAL STATEMENTS 4 continued
Se ptember 30, 2005
Note 8 _ gong -Term Debt (Continued):
Notes le - L C on fi nue j d wnrw�.mnr
Debt service requirements for the FIND note payable are as follows:
............... ..rig.................... .
September 301
2006
2007
2008
2009
2010
2011-2012
Governmental Activities
Principal
Interest
$ 505
,.
505557
505, 557
95,822
505 � 557
76,657
595
57493
1
3.539.598
57, X493
The City also incurred notes payable relating to paving and storm ter improvements at
Florida Shores. The original amount of these notes issued in prior years is described below.
A. portion of these notes are secured by a pledge of assessments levied on property within the
assessed area. In the event that a deficiency e because of unpaid or delinquent
a ssessments, the City must provide resources to cover the deficiency until ether resources, for
example, foreclosure proceeds, are received.
The special assessment and storm ter notes payable consist of the following:
S erojes 1995
Interest rates:
I nterest dates:
Final maturity:
Original amount issued:
5.22/0
April 1, October 1
October 1, 201
$9
Series 1 995B
5.58%
April 1, October 1
O ctober 1, 2010
$3X4
The 1995 Notes are secured by the revenues pledged in order of priority; (1) assessment
revenues, (2) Stormwater Revenues, (3) Utility Taxes, (4) All Non-Ad Valorem Revenues
(except Franchise Taxes).
CITY OF EDGEWATER, FLORIDA
NOTES To FINANCIAL CIAL STATEMENTS - continued
September 30, 200
Note 8 - Long-Term C t (Continued):
Notes Payable- -__ ntinue l
The Special Assessment and Stormwater Revenue Notes resolutions provide for:
1. Establishment and maintenance of Spacial Assessment Improvement Notes
Sinking Fund and related accounts.
2. Restrictions on the use of cash from operations in order of priority.
(a) All Special Assessments shall be applied and deposited only into the 1995
subaccounts listed above. Moneys and Authorized Investments on deposit at
any time in the 1995 subaccounts may be used only for the payment of Debt
Service ors or redemption of the price of, the 1995 Bonds.
(b) All Stormwater Fees shall be deposited into the Stormwater Utility Management
Fund (the Utility Fund). After the provision for the payment of operating
expenses of the city's Stormwater Utility, the City shall transfer to the 1995
Notes suba count Stormwater Utility Fees until the aggregate amount
transferred is equal to the amount certified by the City's Director of Finance as
the portion of that fiscal year's debt service necessary to be paid out of the
Stormwater Utility Fees.
( c) All Non-Ad V alorem revenues ( except Franchise Taxes) shall make up for any
deficiency in Meeting the debt service requirement after all of the
aforementioned pledged revenues have been exhausted.
3. Early redemption:
The city may prepay up to 0% without penalty. Should the prepayments
exceed the amount allowed by the bank, the prepayments are subject to a
penalty using a predetermined formula based on certain interest factors.
CITY OF EDGEWATER, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30 2005
Note 8 - Long -Term Debt (Continued):
Notes Payable Xontinue
Annual requirements to amortize the special as sessment and stormwater notes are as follows.
ws.
Year Ending
. ...
Governmental A tlrrl le
Business
.. Activ
Sep tember 30
Principal
Interest
Principal
Interest
2006
$ 710,012
$201
$ 293 560
$ 83,253
2007
743
163
309,407
67,408
2008
788
1
326, 1
50 # 703
2000
831
80
343,715
33,097
2010
876
3
362
14,54
Totak $3. $002 $1.;635A1_Z $24-8.999
During 2003 the City purchased from Te Mar Utilities a utility co of w ater supply
treatment a nd distribution system and a sewage collection, treatment and disposal system for
$750,000. A down payment of $150,000 was H ale in July 2003 and the balance of $600,000
is to he paid annually in six payments of $100,000. All annual payments are interest free.
Annual debt service requirements are as follows:
:
Year Ending
Business-Type Activitie
Se t„e�r 30
Princ Interest
2006
$100 # 000 $
2007
100
20 08
100,000
2009
100 000
CITY OF EDGEWATER, FLORIDA
MOTES To FINANCIAL STATEMENTS - Conti nued
Sep tember 30 2005
Note 8 - Long -Terra Debt (Continued):
Changes in L n-g -Term Liabilities
Long liability activity for the year ended September 30, 2005 was s follows:
Beginning E nding D Wi th in
Balance Additions Reductions Balance One Year
Governmental activities:
Capital lease 452,820 $_. ..... ... (. 1..x 3311 $1 26
, 35
Notes payable
Revenue note,
Series 2A
2 1 286 1 000
(254,000)
2,032
254 1 000
F IND Dote
4 253
(505,657)
3 # 505
505
Special assessment
note with
government
commitment
4 528 'l3
R
(673,649
3,954
i_
Total notes
payable
10 41 /1 LJ
--
(1,4
,526,11
[
- _
+
Compensated a
985 574
171 448
1,1571022
116. 0
G overnmenta l act
long -terra l
�. 5
- $ - UO1 25
B usiness - typ e activities:
B payable -
R evenue b onds
$117 535 000
--
(425, 000)
$11 1 11 O, 000
$ 450,000
Less deterred amount;
I ssuance d iscount
(103,733
--
10,561
(93,227
..
Tota bonds
payable
11 ,426,
-
_L414,439)
1,011,773
4 5 4
State revo l oan
14,574,225
(1,275,380)
13,293,345
1 ) 3
Cap lease
395,952
5
(106,414)
6
290
Not paya
Re � t ,
venu n ote
Series 2002
4,626
(514 } 000)
4, 11 ,
514
Stormwater note
1,913,543
(278
1 35
293
Terra Mar Note
500 - 00
100 #000
4,0
100 #000
Total notes
payable
74039,543
-
3g 526)
0,147 017,
907,560
C ompensated absences
375,642
72
,�,�.. 1, 737)
426,514
3
Business -type activity
long -term l
574
la " 6 1
05
$37,42.7
51
CITY OF EDGEW TE , FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 3, 2005
Note 9 M Ierd Receivables, Pa and Transfers:
The composition of due to from other funds at September 30, 2005 is follows:
Receivable Fund Pay&bje Fund Amount
General Refuse Collection $ 39 ',9 'l
St rmwat r 793,301
Water and Sewer Water and Sewer Development r ent 376
Renewal & Replacement 6246
Water and Sewer
Development General 1,012
Renewal and replacement General 303,354
The outstanding balances between the General Fund and Refuse Collection and Stor mw t r
Funds resulted from working in capital loans made by the General Fund which the General Fund
expects to collect in the subsequent year. The outstanding balances between Water and
Sewer Development and Renewal and Replacement Funds and the General Fund resulted
from deposits being put in the wrong bank account and fund.
it terfund transfers for the year ended September 30, 2005 consisted of the following:
Transfer I
Transfer out:
General Fund
Nonajor
Governmental
Water and
Sewer
Refuse
Collection
N nrnaj r
Business
Taal
Water
and
Serer major
Fund Business
General Debt service major
Fund Fund Governmental
12,000
1,005
294
1 X00
$353,429
w
$13
1
$33
-
308,354
39, 390
T otal
405,'l99
13,153
1,31 3,354
294,099
Transfers are used to 1 move revenues from the fund that statute or budget requires to
collect then to the fund that statute or budget requires to expend them and 2 move
receipts restricted to debt service from the funds as debt service payments become due.
CITY OF EDGEWATER, FLORIDA
NOTES To FINANCIAL STATEMENTS - continued
September So 2005
Note 10 - Defined Benefit Retirement Flans:
P lan est bons
Police officers' Retirement Trust Fund - The Police officers' Retirement Trust Fund
is a single employer defined benefit retirement system established pursuant to state
statute. The funding methods and determination of benefits payable are provided in the
various acts of the Florida Legislature, the Board of Trustees, and the City Council. The
statutes provide, in general, that funds are to be accumulated from employee
contributions, city contributions, state appropriations and income from investment of
accumulated funds. Actuarial deficiencies as determined by the state are funded by the
City. The investments of the fund are administered, managed and operated by its B oard
of Trustees using the services of the Finance Department and Principal Mutual Life
Insurance Company. investments are reported at fair value.
Full -tine 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 % of their salary to the plan. The City is
required by statute to contribute remaining amounts accessary 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 is 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 % of that average multiplied by years of actual
service up to October 1, 1987, and 3% of that average multiplied by years of actual
service after October 1, 1987.
General Employees' Pension Fund - The General Employees' Pension Fund is a
single employer defined benefit retirement system and contains the assets of the
General Employees} Pension Fund. The funding methods and determination of benefits
payable are provided by various acts of the City council, including subsequent
amendments thereto. The code provides, in general, that funds are to be accumulated
from city contributions, and income from investment of accumulated funds. Investments
are reported at fair value.
The General Employees' Pension Fund includes all full -time City employees, except
police, firefighters and City Manager.
53
CITY OF EDGEWATER, FLORI
NOTES To FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 10 - Defined B Reti Plans (Con
Flan Descdptions inn
General Employees' Pension Fund (continued) - Employees become eligible for the
plan after three months of continuous employment with vesting beginning a of the first
d y.... f Tpl y n nt. Active members ark requ contribute t ...2.5.��n... o tl ...plan. The
............ .. Y.._.,_._ .. _.. .. .. . .. 1 - 1 .
City's policy is to contribu am ounts as determined by actuarial valuations. Employees
vest for full be after five years of service. Benefit amounts are calculated based on
the three consecutive years which give the highest average out of the last ten years.
Members will receive a benefit amount equal to 2% of that average multiplied by years of
accrual service.
The General Employees' Pension Fund was amended in October 1996, which closed off
the plan to any new employees Fired by the city after October 1, 1996. Employees fired
after October 1, 1996, ho wever, are eligible for the city's 4 Defined contribution
Plan. Employees hired prior to October 1 1996, and not vested in the General
Employees' Pension Fund as of September 30, 1997, may elect to participate in the
401 a Defined contribution Plan.
Firefighters' Pension Fund - The Firefighters' Pension Fund is a single employer
defined benefit retirement system established pursuant to state statute in July 1990, with
an effective date of November 1989. The funding methods and determination of benefits
payable are provided in the various acts of the Florida Legislature, Firefighters' Pension
Board and the city council. The statutes provide in ge 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.
Pull -time firefighters are eligible to participate in the Firefighters' Pension Fund upon
their fiat day of employment with the city. Participating fire employees contribute % 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 w ith
State Statute. Employees v est for full benefits after five years of service. Ben
amounts a r e 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 av
multiplied by years of accrual service.
CITE OF EDGE vATE , FLORIDA
NOTES To FINANCIAL STATEMENTS - continued
September 30, 200
Note 10 - Defined Benefit Retirement Plans (continued)*
Flan !esri bons LCon
Membership data of the Pension Plans are summarized as follows:
Police General
Officers E luees Firefighters
Retirees and beneficiaries currently
receiving benefits and vested
terminated employees 21 99 1
Active employees:
Fully vested 22 65 1
No ve ted 10 O
Significant Accounting Policies y- city of Edge water's financial statements for the three
pension funds are prepared using the accrual basis of accounting. Employer and plan
member contributions are recognized in the period that contributions are due.
Investments in the three pension funds are reported at fair value according to the
independent custodian for each plan using various third party pricing sources.
Publicly available financial reports for each plan, that include detailed actuarial data, can be
obtained from the City's Finance Department.
In 1997 the city adopted GASB GAS Statement No. 25 on pension accounting and reporting.
This Statement requires the disclosure of any investments in any one organization that
represents % or more of plan net assets. All investments in the PoUce Officers' Retirement
Trust Fund and the General Employees Pension Fund are invested in the Principal Financial
Group's various investment portfolios. There are no investments in any one organization in
the Firefighters' Pension Fund that exceeds % of plan net assets. None of the plans held
securities issued by the employer.
Contribution Requirements and Contributions Mad -- The Florida Legislature, city
Council and each Pension Board governs the City and employee contribution requirements
for the Police Officers' Retirement Trust Fund and Firefighters' Pension Fund. The City's
contribution to the General Employees' Pension Fund is an actuarially determined periodic
amount that increases gradually over time so that sufficient assets will be available to pair
benefits when due. The employees' contribution is 2.5% of their salary.
The city's contribution to the Police Officers' Retirement Trust Fund and Firefighters'
Pension Fund is an actuarially determined periodic amount. The employees' contribution for
these plans is % of their salary. contributions provided by the State of Florida are in
accordance with State statutes.
CITY OF EDGEWATER, FLORIDA
A
NOTES TO FINANCIAL. STAT - Continued
September 3, 2005
Note 10 - Defined Benefit Reti rement Flan (Co ntinued) :
nnua i Pension Cost and Net Pension Obligation - The City has contributed the Annual
Required Contribution (ARC) each year since plan Inception and thus has not had, or had
need to report, a Net Pension Obligation (N 0 . In accordance with GASB ,statement No.
27 the City calculated the potential for a net pension liability (asset) and reaffirmed that
none existed t September 30, 2005.
Required supplementary information is a follows:
Schedule of Contributions from the Emolover and Other Contributina Entities
3.
General Em
Police Offi
Firefighters
A
Percentage
Annual
Percentage
Annual Percentage
Year Faded Required
of ARC
Required
of ARC
Req of ARC
September 30 Contribution Contributed
Contribution
Contributed
Contribution Contributed
2000
$301 ,804
1 00%
$380,071
00%
99,161
00 %
2001
300,709
100%
351,770
100%
140,103
00%
2002
439 ; 160
100%
329,225
100%
140
00%
2003
438
00%
410
100%
140
00%
2004
584
00%
461
100
1 87
00%
2005
844227
100%
448, 1 79
100
181
100%
Schedule of Funds ro ' ess - Pol ice Officers' Ret irement Trust Fund
U
Actuarial
(Assets in
Accrued
E xcess of ) AAA.
Act ariial
Liabili AA -
Unfun
as a Percent
Actuatial
V a l ue of
Frozen Entry
(Asset in
Funded
Covered
of C overe d
V alu ation atio,
A sse ts
Ag e
Excess ss of ) AAL. R atio
Payroll
P
Dat
a
b )
(b - a)
(ab )
(a
b - ale
0101199
$2,672,255
$4 3,803
$1 j 13
01.0 $ 995
1 84.8
1 0/01/00
8,807, 503
4 , 704
1 1 554 1 261
68.0
1
1 49.,E
10101/01
3
5
1
72.
980
149.5
10101
4,514711
0
1 ,825,' 75
71.0
1
1 70.0
10/01/
4,995
0 � 954
1
71.9
1 $ 042 # 103
1 88A
10101/04
5 5
7
1,903,
74.3
1
162.1
3.
CITY OF EDGEWATER, FLORIDA
NOTES To FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 10 - Defined Benefit Retirement Plans (Continued)
Schedule of din Pry rss -ire titers'
Retirement Trust Fund
Unfunded
Actuarial
(Assets in
Accrued
Excess of) AAL
Actuarial Liability AAL - Unfunded
as a Percentage
Actuarial Value of Frozen Entry (Assets in
Funded Covered
of Covered
Valuation Assets Age Excess of) AAL
Ratio Payroll
Payroll
Date a - a
b
b - a/
10/01/99 $ 706 706 R
19 632
10/01/00 959,259 959 -
100 632
10/01/01 1 1 t 287 r 780 -
190 725 345
10101/02 1 4 X 489 1 M
190 838
W
10/01/03 1 1 W
100 980
10/01104 2 2 017
78.03 1
55.88
Notes to the Required Supplementary Information
- The information presented in the
required supplementary schedule was determined as part of the actuarial valuation at
October 1, 2004. Additional information applies as follows:
General
Police
Empl!
Officers
Firefighters
Valuation date 10101
10101104
10101/
Actuarial cost method Aggregate Cost
Frozen Entry Age
Entry Age
Amortization method N/A
Level Percentage
Normal Actuarial
Cost Method
Remaining amortization period N/A
27 open
30 open
4 Year smoothed
4 Year smoothed
Asset valuation method Market Value
Market
Market
Actuarial assumptions:
Investment rate of return 7.5%
7.25%
7.5%
Projected salary increases
(including inflation of 3. 0%) 7.5%
7.5%
7.5%
Retirement age 55 and 5 years of
55 with 5 years of
5 with 5 years of
plan participation or
accrued service
accrued service or
25 years of plan
or after 20 years
after 20 years of
participation,
of accrued
accrued service
whichever is
service
earliest
5
CITY OF EDGEWATE , FLORIDA
N OTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 10 - Defined Benefit Ret irement Plans (C on t inue d) :
Notes to the Rectuired Syo lementaa Informationo LContin e
As noted above, the General Employees plan uses the aggregate actuarial cost method,
Bich does not identify or separately amortize unfounded actuarial liabilities. Therefore,
presentation of a schedule of funding progress is not required. Since the Police officers
and lIrefighters Flan use the frozen entry age actuarial cost method, a schedule of funding
progress has been presented above. The Firefighter Plan .. changed from the aggregate
a ctuarial cost method to the entry age actuarial method, therefore the schedule of funding
progress on the previous page does net report unfunded actuarial accrued liability for
actuarial valuation dates prior to October 1, Zoo.
Note 11 - Defined Contribution Pension Plans*
General Employees - The City adopted a defined contribution plan effective October 1,
1996. The plan Is a money purchase plan administered for the City by the Principal
Financial Group. Eligible employees are employees hired effective October 1, 1996, or
thereafter that would otherwise qualify for the General Employees' Pension Ilan.
Employees hired prior to October 1, 1996, and not vested in the General Employees}
Pension Plan may also elect, instead, to participate in the defined contribution plan. The
plan provides for an employer contribution equal to 1 2% o f employee earnings. Employees
who elect to participate in this plan that were Fired prior to October 1, 1996 'will have the
following contributions made:
Term of
Employment Prior
to cot ber 1, 1996
% Contributed for
E arnings Prior to
October 1, 1996
% Contributed o r
Earnings After
October I � 1996
months - 2 years 10 12
years - 4 gears 11 12
years - 5 years 12 12
Employees are 100 vested immediately upon participation. Employees direct the
investment of funds contributed to the plan on their behalf. Employer contributions made
during the year amounted to $218,466.
Note 1 - Commitments and Contingencies:
Litigator - The City is engaged In various liability claims incidental to the conduct of Its
general government operations a September 30, 2095. While the ultimate outcome of the
litigation cannot be determined at this time, management believes that any amounts not
covered by insurance if any, resulting from these lawsuits ould not materially affect the
financial position of the City.
0
CITY F EDGEWATER, FLORIDA
A
NOTES To FINANCIAL STATEMENTS - continued
September 30, 2005
Note 12 - commitments and contingencies (continued),
Risk Management - The city is exposed to various rids of loss related to torts; theft of,
damage to and destruction of assets; errors and omissions; and natural disasters for which
the city carries commercial insurance. Liability limits are in excess of $39.1 million and
terms associated with property insurance include total deductibles of approximately
,coo, with a o coinsurance provision. The city has obtained excess insurance
coverage w ith varying retentions and limits to further limit exposure to large losses. There
have been no significant reductions in insurance coverage from the prior year and
settlements have not exceeded insurance coverage during the past three years.
Note 13 - Joint Venture:
On January 11, 2003 the Cities of Fort orange, New r Smyrna and E dgewater entered into
an interlocal agreement to provide a consolidated (Dispatch) communications and record
system servicing laver enforcement, fire, rescue and emergency communications for each of
the cities. This entity, know as Communications Interlooal Agency (Cl Agency) was
established pursuant to Florida statute Section 163.01 ), The Cl Agency operates as a
public entity using a fiscal year ending September 30. The interlocal agreement expires on
January 1, 2007, unless renewed by the three cities, on dissolution of the Cl Agency, the
net assets will be distributed in the same proportional share to the financial contribution
made by the cities.
The Cl Agency is an instrumentality of the municipal parties and is entitled to sovereign
immunity except where waived by general laver. It operates pursuant to direction from its
governing board. The governing board is comprised of three mayors for the respective
Cities, mentioned above. operating guidelines, procedures, designations and restrictions
are determined by this governing body,
All operating cost of the cl Agency is allocated to Port orange, New Smyrna and
Edgewater in the respective amounts of 0 %, 5% and %. Allocated costs may be at a
different percentage rate due to direct expenditures for specific goods or services requested
by an individual City. These expenditures generally reflect items that are unique to the
operations of the City and do not provide an overall benefit to the interlocal agency.
Therefore, the City of Edgewater has an ongoing financial responsibility to pay its share of
the cost of operations.
The majority of initial, first year charges to the respective Cities were for the acquisitions of
capital purchases. These initial charges were not in accordance Frith the above allocations,
as some Cities owned certain pieces of equipment prior to the inception of the Entity. The
different proportions of existing equipment t ar other capital already owned by the three
participating Cities gives rise to a disproportionate allocation of net assets. The City of
Edgewater }s net investment in the joint venture is reported in the government-wide
statement of net assets and totals $32,988 at September 30, 200 5. The net investment in
the joint venture decreased $86,778 from September So, 2004. Complete financial
statements for the cl Agency are available upon request.
59
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COMBINING AND INDIVIDUAL FUNS]
STATEMENTS AND SCHEDULES
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MAJOR GOVERNMENTAL FUNDS
Debt Service
Debt Service Eland - This fund was established to account for the accumulation
of principal and Interest for certain general long -term debt.
This page i ntent i onally left blank.
�
�r
� � � / :�� ' ■
�
rA IL 0
CITY F EDGEWATER, FLORIDA
DEBT" SERVICE FUND
SCHEDULE OF EV NUES EXPENDITURES AND CHANGES I
FUND BALANCES - BUDGET AND ACTUAL
For The Year laded September 30, 2005
Re]
Variance With
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts nt
(Negative
Revenues:
Impact feed special assessments
595,000
595,000
$ 420 # 885
(1 7 1 1 5)
Investment income
810
8
159,693
1611693
Total revenues
603
603,000
580,578
(22,422)
Expenditures:
Debt service:
Principal retirement
573,659
673
573,550
-
Interest and fiscal charges
239,721
239,721
239,677
44
Total expenditures
913
913,371
913,327
44
Excess (Deficiency) of
Revenues Over Expenditures
310,371 310,371
(332,749)
(22,378)
Other Financing Sources (Uses)
Transfers in
353,429
353,429
353,429
Net other financing sources (uses)
353
353,429
353,429
Net Change in Fund Balance
43X8
43,058
20,680
(22,378)
Fund Balances - Beginning
234,909
234,909
234,909
Fund Balances - Ending
$ 277,967 $
277,967
$ 255589
X222378)
Re]
This page If left blank.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Law Enforcement This fund was established to receive revenues derived
Trust Fund from confiscated property obtained during the
enforcement of illegal operations. Proceeds are utilized
strictly for law enforcement purposes, exclusive of
salaries and vehicles. Such purposes may include drug
education programs such as DARE.
Police Impact Fees Fund - 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 ation Impact Fees This fund was established to account for recreation
Fund impact fees collected from new developments constructed
in the City.
Grants Fund - This fund was established to account for restricted grant
funds.
Road Impact Fees Fund This fund was established to account for roach impact fees
collected from new developments constructed In the city.
Capital Projects Funds
Capital Projects Fund This fund was established to account for the acquisition of
fined assets or construction of major capital projects not
being financed by proprietary funds.
CITY of EDGE AT R, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2 005
Special Revenue
Special Law Police Fire Recreation
Enforcement Impact Tact Impact
Assets
Cash and cash equivalents 44,353 113,114 $ 341,563 $ 312,429
Total Assets $ 44 $ 113,114 341 312,429
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ $ $
Total Liabilities
Fund Balances:
Unreserved 44 113J14 341 t 3 3122429
Total Fund Balances 44,368 1 13J 14 341 312,429
Total Liabilities and Farad Balances $ 44,358 113,114 $ 341,563 $ 312,429
61
A
Special Revenue a
Total
Road
Nonmajor
Impact
Capital
Governmental
ental
Grants
Fees
Total
Projects
Funds
$
78
168
$ 1,057,887
1 ,252,583
2,31 ,
78,293
$
168,130
$ 11057,887
$
1
$ 2
'
61,390
61,390
61,390
61
78
168,130
11057
1"191
2
78
168,130
1, 057
1
2,249 # 080
78,293
168,130
1 t 07 t 37
1
2
A
CITY OF EDGEW TE , FLORIDA
COMBINING STATEMENT O REVENUE
EXPENDI AND CHANGES I FUND BALANCES
N ONMAJOR GOVERNMENTAL FUNDS
For The Year Ended September 3, 2005
63
Specia revenue
Special L aw
P o l ice
Fire
recreation
Enforcement
Impact
Impact
Impact
Trust
Fees
Fees
Fees
Revenges:
Intergovernmental revenues
-
..
Fires and forf eit ures
4 } 215
-
Impac t e l i l rx��rnt
-.
65,141
2 72.1.
190,244.
Invest income
1
156
321
206
Miscellaneous
842
-
Totai revenues
49
06,297
109, 042
100,450
E xpenditures:
Current.
Public safety
807
-
Leisure services
-
32,938
Capital outla
General government
-
Tot l expenditures
8
32,933
x ess(Defi len y) of Revenue
Over Expenditures
40,191
606,297
199,94
157,512
Other Financing Sources(Use .
Transfers in
--
-
Transfers out
( 1 t 163
(4,000)
(4,000)
(4, 000)
Net other financing sources(uses)
(4,900)
(4,000)
(4
Net Change in Fun B a lances
39,088
81,297
106,04
163,512
F und B a l ances # B e ginning
5,32
51,817
236, 821
168,
F und Balances - E n din g
44,368
113,114
341 t 63
812,429
63
63,896 168,130 604, ,�rrlrwo__(T, 1 596,15
14,394 *` 14,397
Sp Revenue
M (13, 153)
(1
Total
1
Road
(7,917 ) 597
Nonma
Impact
Capital
Governmental
G r ants
Fees
Tota
E'0'
Fund
326, 1 6 3
$
326,
T
326
48,215
48,21
w
' 68,1
532,2
'-
/'�
532,236
--
684
15,244
1 5, 928
-
8 42
-
842
r
326 t 163
168,130
908,140
1 6, 244
923,384
148,814
-
157,681
-
157,681
1
146,391
146
-
-
-
3
23,161
262
-
304,07
2
327,233
63,896 168,130 604, ,�rrlrwo__(T, 1 596,15
14,394 *` 14,397
14,397
M (13, 153)
(1
14, - 1 , 244
1
78,293 1 6M31
(7,917 ) 597
452, 1,199,110 1,651 ,686
78,293 $ 1 68 s 130 1 ,057,887 1,191,19 $ 2 1 249,080
I ire 5 tl liil5l ��
CITY OF EDGEWATER, FLORIDA
SPECIAL LAW ENFORCEMENT TRUST SPECIAL REVENUE FUN
SCHEDULE O F REVENUES EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Yea Ended September 30, 2005
Revenues:
Intergovernmental revenues
Fires and forfeitures
I m p a ct fees /special assessments
Investment income
M iscellaneous
Total revenues
E xpenditures:
C u rrent:
Pu blic safety
Leisure services
Capital outlay:
General government
ent
Total expenditures
cess(Deficlenc of Revenues
Over Expenditures
Oth F inancin g Sou cies(U e's):
Transfers in
Transfers out
Net other financing sources
N et Chan in Fund Balance
Fund Bal ances - Beginning
Fund Balances - Ending
Budgeted Amounts
Original Final
12,000 12,000
500 500
Variance with
Final budget
Actual Positive
Amounts (Negative)
4 8,215 36,2
(499)
------------- ............_..._. ......... -- -
12,500
..._- ...-- ....- _.......... - ... ...................
1 2 j 500
- -- - -- ................... .. .............
49,088
..._
38,568
14,000
12
807
3
i
iF
rtF
8,867
14
14,000
12,847
3,980
(1 ,500)
40,191
40,538
( 1,153)
1,�i8
.�
(11153)
(Is153)
(1, 500)
1,500)
39,038
40,53
5
5 ,320
5,320
-
3,820
3,320
44 $
40,838
65
CITY E GEWATE1 , FLORIDA
POLICE IMPACT FEES SPECIAL REVENUE FUND
SCHEDULE OF REVEN E EXPENDITURES AN
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
For The Year Ended September 3, 2005
Revenues:
Intergovernmental revenues
Fines and forfeitures
Impact fees /special assessments
Investment income
Miscellaneous
Total revenues
xpendlitures:
Current:
Public safety
Leisure services
Capital outlay:
General govemment
Total expenditures
Excess (De clency) of Revenues
Over Expenditures
Otter Financing ur e U e ):
Transfers In
Transfers out
Net other financing sourc
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balance's - Ending
Budgeted Amounts
riginal Final
35,370
85,370
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
65,141 29,771
156 156
15,000 15,000 15
1 t oo 15,000 - 115
20,370 20,370 65,297 44,927
.. ... .. ...............................
(4,000 r OOO ( 0)
16,370 16,370 61 44
51 51,817 5 ,817 -
8187 68 3 187 113,114 44,927
MOO
CITY F EDGEWATER, FLORIDA
FIRE IMPACT FEES SPECIAL REVENUE
FUND
SCHEDULE OF REVEN U ES RES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The
Year Ended September 3, 2005
Variance with
Budgeted Amounts
Final Budget-
Actual
Positive
Original Final
Amounts
(Negative)
Revenues:
Intergovernmental revenues
$ - F
$
$ -
Fines and forfeitures
- -
-
-
Impact feesls ecial assessments
78,418 78,418
103,721
30,303
Investment income
- -
321
321
Miscellaneous
-
-
w
Total revenues
78,418 78241
109,042
30,624
Expenditures:
Current:
Public safety
15,000 15,000
-
15
Leisure services
- -
-
Capltal outlay:
General g ovemment
- -
..
-
Total expenditures
15, 00 15,000
15,000
ExessDeficlency of Revenues
Over Expenditures
63 419 63,410
109,042
45,024
Other Financing our es( e :
Transfers in
- -
-
-
Transfers out
(4 (4,000)
(4,000)
..
Net ether financing sources(uses)
(4,000 (4,000)
(4,000)
Net Change in Fund Balances
59,416 59
1052042
45,624
Fund Balances - Beginning
236,521 236,52'
236,521
-
Fund Balances - Ending
295 $ 295,039
341
$ 45,624
CITY F EDGEWATER, FLORIDA
RECREATION IMPACT FEES SPECIAL. REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND AAA.
For The Year Ended September 3, 2005
Revenues
Intergovernmental revenues
Fires and forfeitures
Impact fees/special assessments
Investment income
Miscellaneous
Total revenues
Expenditures;
Current:
Public safety
Leisure services
Capital outlay:
General government
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing ourc s( ses ),
Transfers in
Transfers out
Net other financing source uses
Net Charge in Fund Balances
Fund Balances - Beginning
Fund Balances - Endin
B udgeted Amounts
Original Final
_
14305 143,695
Variance %Vith
Final Budget-
Actual Positive
Amounts (Negative
1 99,244 46
06 206
190.,4 . 46,765
125,090
125,000
32,933
92,962
126
92
125
32,938
18 696
13,695
157,512
138,817
(4
(177,695)
(4,000)
173,695
(4,900)
(177,695)
(4,000
1 73,695
14,695
(159,900)
153
312,512
158
1 3, 917
158,917
-
173,612
(83 )
312
312
Me
CITY OF EDGEWATER, FLORIDA
G RANTS 1 S SPECI L REVENUE FUND
SCHEDULE V NUES EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
For The Year Ended September 3, 2005
Variance vVjth
Budeted Amounts Final Budget-
Actual Positive
Original Final Amounts (Negativ
Revenues:
Intergovernmental revenues $ $ 536,935 $ 326,153 210, 772)
Fines and forfeitures -
.......... .
Impact fees /special assessments - =
Investment income
Miscellaneous
r
Total revenues
535
326,153
(210,772)
Expenditurew
Current:
Public safety
- -
148,01
(148,814)
Leisure services
- 605,830
113 # 453
492
Capital outlay:
General government
- -
-
-
T"otal expenditures
- 605,830
252,287
343,383
Excess(Deficiency) of Revenues
Over Expenditures
- (68
53,896
132,591
Other Financing ources(Uses ).
Transfers In
' 173,695
14,397
159
Transfers out
- -
-
_
Net other financing sources(
- 173,695
14,397
159,293
Net Change in Fund Balances
- 105,000
78,293
29'1,689
Fund Balances , Beginning
- -
-
-
Fund Balances - Ending
' 105,000
78,293
291,889
w"
CITY OF EDGEWATER, FLORIDA
ROAD IMPACT" FEES SPECIAL REVENUE U
SCHEDULE OF REVENUES, ENUES EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGES` AND ACTUAL
For The Year Faded September 3, 2005
Budgeted Amounts
Revenues:
Intergovernmental revenges
Fines and forfeitures
Impact fees /special assessments
Investment income
Miscellaneous
Total revenues
Expenditures;
Current.
Public safety
Leisure services
Capital outlay;
General government
Total expenditures
Excess( efficiency) of Revenges
Over Expenditures
Offer Financing Source (Uses ):
Transfers in
Transfers out
Net ether financing sources uses
Not Change in Fund Balances
Fund Balances - Beginnin
■ and B alances - Ending
Original Final
00 t OOO 200,000
" nnn 1 > nnn
0 202
202,000 202
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
168,130 (31,870)
!9 [1f' M
168,130 (33,870)
188,13 (33,870)
I iju IOU U koo f %J)
0
CITY OF EDGEWATER, FLORIDA
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
For The Year Ended September 30, 2005
Revenues:
:
Inter ove mental revenges
Fines and forfeitures
lr 'Pie f si pe aI a se nt
Investment Income
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Leisure services
Capital outlay:
General government
Total expenditures
Excess(Deficiency) of Revenues
Over Expenditures
Other Financing ourees (Use ):
Transfers in
Transfers out
Net other financing sources(uses
Net Chan to Puna Balances
Fund Balances - Beginning
Fund Balances » Fading
Budgeted Amounts
Original Final
20,000 20,000
20 20
Variance with
Final Budget-
Actual Positive
Amounts Negative
15.244 (44756)
15,244 {4,756)
(1,140,934) (1,140,034 ( 91 l o l3U
(I 2 140 t 934) 1,1 0 34 (7,917) 1
5 8,176 58,1 1 $ 1,133,017
NON MAJOR PROPRIETARY FUNDS
nterl] rise Funds
st rmwater Management - This fund is used to account for the fiscal activities of the
Fund City's storwater drainage operation, as well as the
funding and payment of related debt,
Water and sewer - This fund was established at October 1, 2002 with net
Development Fee Fund assets of the water and sewer fund that were reserved for
development. Water and sewer d evelopment fees
received each year are de posited into this fund to be used
primarily for capital improvements is to the water and surer
system.
Renewal and Replacement This fund was established at October 1, 2002 with net
Fund assets of the water and sewer fund that were reserved for
renewal and replacement. Bond covenants require that
transfers be made to the renewal and replacement fund
equivalent to 5% of the gross revenues of the system for
the previous fiscal year,
This page intentionally left blank.
�fi�
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF NET ASSETS
NON MAJOR PROP RIETARY FUNDS
S 3, 2005
Liabilities
Current llabllties:
A ccounts payable
Stormwater
Water and Sewer
F ene wral and
Total 1 onrnajor
A l
Management
Development
Replacement
Proprietary
l etainage payable
Fund
Fee Fund
Fund
Funds
Assets
39
-
-
39
Current assets:
793 2 391
370,
16,246
1
Receivables, net
$ 92,995
23,196
$
121,191
Due f rom o th er f
293, 560
1 1 012,3 5 7
308,354
1
Total current assets
92, 995
1
303
1 1 441,902
Noncurrent liabilities.
N oncurrent asset
Capital leases payable
R estricte d cash an cash
'
-
23
Notes parable
e quivalents
-
1,517
-
1
B on d issuance costs
3,272
1 1 369,359
3 # 272
Capital assets.
438,394
16,376
2 1 981,153
Net Assets
,.end, buildings and equipment
6
6,215,722
Construction in progress
239,129
-
239,129
L ess accumu depreciation
X 1,592,393 1
w
-
2 592, 303}
.. irryryrnrwnr rri rruwmn�F
w��n�
Total capita asset net of
2 34
291
2 ; 41 1 1 062
Un restricte d
accumulated depreciati
4
-
-
4 3
Tota noncurrent assets
4
1
4
6
Total assets
4 1 949 1 306
2
303,354
7
Liabilities
Current llabllties:
A ccounts payable
19, 442
4 1 953
630
16,025
A l
1 X 761
-
1 1 761
l etainage payable
-
56,992
--
50, 992
C om p ensate d a b sences
39
-
-
39
Due to o funds
793 2 391
370,
16,246
1
Capita leases payable - current
17,539
1 7 3 589
N otes payable current
293, 560
'
293
Total current liabilities
1 x 156,024
438, 394
16,876
1 # 011 1 294
Noncurrent liabilities.
Capital leases payable
23,402
'
-
23
Notes parable
1
Total noncurrent l
1
1 1 369,359
Total liabilities
2
438,394
16,376
2 1 981,153
Net Assets
Invested in capital assets, net
of related d e bt
3
'
-
3 } 931
Rest ricted for capital protects
'-
2 34
291
2 ; 41 1 1 062
Un restricte d
748, 62L
-
-
X748 # 6081 .
Total net assets
2 $
2
$ 291,478
4
W
This page intentionally left blank.
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF REVENUES EXPENSES
AND CHANGES IN FUND NET ASSETS
NONMAJOR PROPRIETARY FUNDS
For the Year Ended September 3, 2005
73
tormwater
Water and Sewer
Renewal and
Total lnmejer
Management
Development
Replacement
Proprietary
Fund
Fee Fund
Fund
Funds
Operating Revenue
U ser Charges
$ 953,752
-
183,107
$ 1,136,919
Operatin E
Sa l aries and b enefits
433
-
433,552
Materials an d supplies
104,448
-
-
104,448
Dep reciation and amortization
232,838
-
232, 838
C ontractua l se rvices
03
100,331
248,506
4'12 183
Total o peratin g ex penses
833,984
100,331
248,506
'1 182,
O p erat in g income(loss)
119,768
(100,33
(65,339)
(45,904.1
Nonoperating Revenu
I nvest ment income
938
67,121
22,427
90,486
I nterest ex
I 0
-
x. '101,786)
iwwxwwx�w'xw
T ota l nono erating revenue
(190
87,121
22
1,300)
Income before contributions
an d trans
18,920
(33,210)
(42,912)
(57,202)
Capital nti utio Is,
Develo fees
1 1 013,71 1
1
T ransfers in
-
-
308,354
308,354
T ransf e rs t
109
(892,595)
(267,795)
(989,8901
Ch ange in net assets
(90,580)
387,008
(2
294,973
Total Net Asse - Begiinniing
2
1 ,731,678
293
4
T N A ssets - End
2
2 1 11 9,584
291 ,478
4
73
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
N ONMAJOR PROPRIETARY iETAi FUNDS
Fo The Y ear Ended Se ptember 30, 2005
Cas Flows from Investing Activities:
Investm income
torrnwater
Water and Sewer
Renewal and
Total Nont ajor
938 67,121
Management
Development
Replacement
Prop rietary
F un d
F Fund
Fund
F unds
Cash Flows f rom Operating Activities:
Cash and C Eq uival en t s - B ni
3 1
973, 592
2
R from customers
$ 905,21
1
83
1 t V t
P ayments to suppliers
1 75 1 )
(211,370)
(927
(1,314,913)
Payments to e
� _ 54 ,395
.
,
L454
�� ,
N et cash provided ( b operating
$
$ 1
1 1 5 17,425
'�
1 15179425
4
activities
activities
274, 913
2 1 ,1
1 ��MMXXiYi/'�R
44,
RMSMhM�+i�
( 67967D
NYYMI�I�I
C Fl from Non - C a pital
F inancin g Activities:
(Increase) in due from other funds
-
(1,912,357)
(303,354)
(1
Increase In due t o ther f
455,974
376,449
16,246
343
Operating transfers in
-
-
303,354
306
O p erat in g transfers out
109150
..r i ( 59 22 595 )
,��. � 67,795
u � 96 , 99
N et gash provided ( u s ed) by non-ca
Ci1i.`
3
� (
«:x.
( 251 x
( 1 . ,1339578)
C Fl from Ca an d r
F inancing Activities;
Acquisition of capital assets
(230,1
(230,120
P rincip al p o long -t de bt
(295,429)
(295,429)
Interest p on long-term debt
(109,494)
(190,494)
Development foes receive
T
1
1,913,711
N cas provide (used) by cap and
related finanding acts it
- -- -- 6 6,043
1,913,711
387,568
Cas Flows from Investing Activities:
Investm income
933 6' , 1
22,427'
90,486
�-y
Net cas p by Investin a ctivities
938 67,121
22,427
99,436
N Increase (Decrease) in Cash an d
C Equival
(3 357
(973
1 �335
Cash and C Eq uival en t s - B ni
3 1
973, 592
2
Cash and Cash Equivalents - End
- $ 1,517,425 $
1 0 517 3 4 5
Classified As;.
Cash and cash equivalent $
- $ $
-
restricted ca and cash equivalents
1 t 5 l 7,425
-
1,51 "2425
$
$ 1
1 1 5 17,425
'�
1 15179425
4
74
Stor water Water and Sewer Renewal and Total Non major
Management Development Replacement Proprietary
Fund - -- Fee Fu nd - F und Funds
-- u - -
Reconciliation f Operating Income
(Loss) to Net Cash Provided By
Operating Activities
Operating Income (loss
119,70800,33 (45,902)
Adjustments Not Affecting Cash:
Depreciation and amortization
C hange is Assets and Liabilities:
(I ncrease ) decrease in accounts receivable
(D ecrease ) in accounts paya
Increase decrease. in retaina a payable
Increase in accrued l
(Decrease) in accrued compensated absences
Total adjustments
Net Cash Provided(Used) by Operating
Activities
232,633
232,638
(48, 533)
1 --
(47, 283)
11 7 )
( 168,031) (501 r 072)
(737, 220)
56,992 18, 059)
(61,067
894
"" "'
894
( 21 s 737)
-� -
21,737
155,145
1 09,735 ... .......................... .. --- (679,1311
033 * 775
27 9 3 w 210,12 $ ...............( . ........... - ... 79,577
75
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FIDUCIARY FUNDS
Pension Trust Funds
Police, Firefighter and - These funds are used to account for the alY1latl
General Employees' resources to be used for retirement annuity payments at
Pension Funds the appropriate amounts and tines i the future.
Resources ources are contributed by employees at rates fixed by
law and by the City and the State at amounts determined
by an annual actuarial study.
This page intentionally left blank.
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF FIDUCIARYNET ASSETS
FIDUCIARY F
September 3, 2005
Assets:
Investments, a fair value:
Debt mutual funds
Equity mutual funds
Total investments
Total assets
Liabilities:
Acc o u nts payable
Gene ral
Employees
Pension Trust
Police
Officers Firefighters
Pension Trust Pension Trust
T
Employee
Pension Funds
5
$4
$ 1
$ 11 # 263, 446
61 318,538
2,209
1
10 256, 313
12 084
1 4 6� 84
; 751,391
21,524,759
1 , 307,084 6 21 751,391 21 ,524 # 759
1 X 034
1
Net Assets Held in Trust for
P ensio n Benefits $12, 306, 050 $ 6 $2,751,391 $ 21, 523, 725
This page 'Intentionally left blank,
CITY OF EDGEWATER, FLORIDA
COMBINING STATEMENT OF CHANGES S III FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For The Year Ended September 30, 2005
7
General
Police
Total
Employees
Officers
Firefighters
Employee
Pension Trust
Pension Trust
Pension Trust
Pension Funds
Additions:
Contributions:
Employer
8442227
$ 379
$ '181 1 391
$ 1,405,598
Plan members
66,445
81,561
228,237
State
w`
1 14,552
" 80,231
1 6,406
191,058
Total contributions
910
575,193
338,028
'1
Investments income:
Net increase in fair value
1
450
188,356
1
Net investment income
1,1 40,792
450,499
133
1 t 77 # 547
Total additions
2 ,454
1 t 026,692
520,384
3,654
eduebons#
Benefits /distributions
479,290
228,505
707
Administrative expenses
30,727
28,552
252478
84
Total deduebons
510,023
257,157
25,478
792 1 558
Change in Met Assets
1 1 541 + 441
769
500,906
2
Net Assets Held in Trust for
Pension Benefits
Beginning of Year
10
5
21250,485
13 # 711 1 343
End of Year
$12
6,466
$ 2 1 391
$ 21
7
This page intentionally left blank.
�, �,1
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL EI TAL FUNDS
This page intent o n a � left bla n �.
#�
� )
z�&
� 4
�
• 4 to L
CITY OF EDGEWATER, FLORIDA
CAPITAL SSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
For the Ye ar Ended September 3, 2005
Land
Buildings
Improvement
Machinery & equipment
I nfrastructu re
Construction in
p rogre ss
T
G enera l Government
Public Safety
Public Work
L eisure S ervices
Total
Ge neral
Public
Public
Leisure
G overnment
Safety
Works
Services
Total
$ 1
166,691
6,906
1
3
178,538
'l ,226, 069
60
2 895, 746
4 367
74
25,905
12,810,510
2
14,96 ,851
400,672
2,295
234,899
667 } 430
3
W
..
861 ,432
-
851,432
- 8 1 200 1 1 637,667 619A18 2 065,285
$ Z588 $ 3 $15 $ 7 29 } 604,548
Balance
$ 2
3
5,255,9'4
D e letions
and Balance
i -0.100** OWN . . t 1\0& w" A M
40,682 142,912 2
64,'172 193,728 3
247,401 3 16,499,673
+y. ��..�rwv #vwry y+ v•r
•t* ■+ 14, ■ r tJt Wrt • wj# w 4 #3 • w
78
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STATISTICAL SECTION
This page intent left blank.
! �
\ �
� ��
,. �
`'�� •� . ;�
■ ` ` � ■
�
STATISTICAL INFORMATION
Comments Relative to statistical Section
The following statistical tables that are recommended for inclusion by the Government Finance
Officers Association are not included for the reasons stated below:
A Ration of Net General bonded Debt t to Assessed Value and Net Bonded Debt per
Capita - Last Ten Fiscal bears - The City has not had any general bonded debt over
the past ten fiscal years.
B. Ratio of Annual Debt Service for General bonded Debt to Total General Expenditures -
Last Ten Fiscal Years - The City has not had any general bonded debt over the past
ten fiscal years.
C. Florida Statutes and the charter of the city of Edgewater, Florida, set no legal debt
margin.
CITY OF ECWAT, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION 'I
LAST TEN FISCAL YEARS
Fiscal
General
Public
Leisure
Capital
Debt
Year
T otal
Governmen
,Safe!y
Transkortation
Services
Ou
Service
1996
12,357998
1
2,762 925
42%734
623, 604
6
990,099
1997
11,563,627
1
2
400,222
590,121
51061 X 279
954,129
1996
7 1 177,744
1,371
3
323 # 927
601,396
414,308
944
1999
7 720 t 050
1
3
301,660
61 6
1
943, 649
2000
10
11423,439
4,164,037
667
728
21241,616
938,981
2901
10,506,931
1,633,024
4,395
949,445
925
1
936
2092
15, 749, 026
2,133, 671
5
986
1, 335, 743
4,967, 147
962,969
2003
11 t 212,699
2,033
5 r 308 t 937
359,916
1 1 609, 971
409,383
1,491 t 050
2004
14,120,307
2
5,873
390,755
1,978
658,277
1 ,376,252
2005
12,61 8,005
2,710
5
450,736
1,595,090
23 161
1,865
1 Includes General, Special revenue, Capital Projects and Debt Service Funds.
79
CITE OF EDGEWATER, FL ORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE f1)
Last Ten Fiscal bears
Fiscal
Year
T otal
T a
1996
7
8,016,181
1 997
7,293,444
6,1 47 t 962
1 998
7,468
8,484,289
1999
7,67
5,6'16,973
2666
7 , 718,669
6,4
2961
9 1 4
6 1 89 61
2092
9,152,993
,1 , 998
5
2663
`
9
5
2004
11 , 248, 546
6,500,120
2605
12,566,916
6
Licenses tervern-
an d
mental
Permi
R evenue s
181 t 459
574,
179,186
688,286
1 86,893
667,988
220
806,787
267
663,079
297,863
1, 382,965
326,793
2
445,741
2
508
2
657,920
3, 032,676
Charges for
Fires an
Investment
Specia
Miscellaneous
Services
Fo rfeitures
Income
Assessments
B ellevue
146, 434
97,828
813,'149
298,767
419,673
111 t 8
�
547,977
288
246,507
123,692
75,309
24,910
609,286
297,743
141 ,439
91,668
27,978
598,790
271
139,931
77 1 669
39,121
677
866,469
265
116,698
36,426
598,314
299, 471
57
77,508
293
577,998
123,222
112,985
193,962
264
644 0 426
44
128,
148, 416
236,291
699,969
869,476
305,320
153
189,852
1,054 ,974
326,354
1 Includ G enera l, Special R evenue, Capital Projects and Debt Service F
w o
CITY OF EDGEWATER, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS (1)
[ a I
Total
T Tax
Pe rcent of Leer
Year
Tax rev
Coll ections
Collected
1996
2
2 681
96.47%
1997
2
2
96.49
1998
2
2
96,70%
1 999
2 1 538,138
2
96.27%
2096
2 013
2
96.48%
2681
2,647
2
98. 17°
2902
2 1 794,043
2
98.80%
2093
3 6�9 3
3
96.34%
2004
4 4
3
96.24
2095
4
4 8 041
96,06%
(1) Each fiscal year contains data from the ad valorem assessment roll of the preceding year
I.e., fiscal year 2002 c ontains the 2601 assessment roll tax collections)
8
CITY OF EDGEWATER, FLORIDA
ASSESSES AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY 1
LAST TEN FISCAL YEARS
F S
(!n Thousands)
1 Obtained from the Revised Recapitulation of the Ad V alorem Assessment Rolls of
Edgewater, Florida provided by Volusia County, Florida Finance Department.
(2) Each fiscal year contains the ad Valorem assessment roll of the preceding year
1.e., fiscal year 2002, contains data on the 2001 assessment roll.
( 3) Assessed taxable values for all fiscal years presented are stated net of the constitutional
homestead exemption of $25,000 and the additional senior homestead exemption of $25,000.
,A
Ratio of Total
Ratio of " t l
Assessed to
Assessed to
(2)
Total
)
Taxable Value
Fiscal
Assessed
Estimated
Estimated
Assessed
To Estimated
Year
Value
Actual Value
Actual Value
Taxable Value
Ac tual Value
1996
510,875
516,875
100,0%
3607,272
71 .06%
1997
542,399
542,399
1 00.0%
383,761
70.75%
1993
501,103
561,103
100.0%
400
71.30%
1999
572,304
572 } 304
100.0%
403,519
79.45%
2000
9
589J01
100.0%
13,951
79.27%
2001
/y 9,
X73
632
100.0%
445
70,39%
2002
694
694 r 53
1 o o%
469,587
67.60%
2003
842,981
842,931
100.0%
539,238
03.97%
2004
974,105
974,155
199.0%
7,57
9.29 0
2005
'1,009
1,009,447
100.0%
044
63-81%
1 Obtained from the Revised Recapitulation of the Ad V alorem Assessment Rolls of
Edgewater, Florida provided by Volusia County, Florida Finance Department.
(2) Each fiscal year contains the ad Valorem assessment roll of the preceding year
1.e., fiscal year 2002, contains data on the 2001 assessment roll.
( 3) Assessed taxable values for all fiscal years presented are stated net of the constitutional
homestead exemption of $25,000 and the additional senior homestead exemption of $25,000.
,A
CITY OF E GEWATE , FLORIDA
P ROPERTY ER1Y TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
T rates per $1,000 of assessed taxa ble va
83
Ed g e water
F iscal
General
Year
Fun
996
7.101
1997
6.590
1998
6.440
1999
6.290
2000
5.950
2001
8.950
2002
8.9
2 003
6. / 50
2 004
6.950
2 008
6.450
T rates per $1,000 of assessed taxa ble va
83
South
Florida a
s . John
Vo lusia
Inlet an d
I nland
Wat
Debt
School
Vol usia
Hospital
M
Port
Navigation
Management
S ervice District
C oup
District
Control
Author's
D ist rict
District
T otal
0 .000
10.887
6.172
2.285
0.262
0.094
U40
0.482
2 7.323
0.000
10.821
6.
2.247
0.238
0.093
0.038
0.48
26.726
0.000
10.487
6.381
2.132
0.238
0.090
0.050
0.482
26,300
0.000
10.376
6.378
2.052
0.238
0.090
0.047
0,482
25.953
0.000
9.166
6.367
2.528
0.288
0.090
0.041
0.472
24.844
0.000
9.166
6.367
2.528
0.
9.999
9.941
0A72
24.844
0 .000
8.899
6.604
2.320
0.238
9.090
0.039
0.462
24,60
0.000
8
6.604
2.820
0.238
0.090
0.402
25.402
0.000
8 .699
8
6
2.820
0. 238
0.090
' 0.089
4/.03 '
0,462
28.002
0.000
8,259
�./ .29
2.350
0.238
0,090
0.039
0.482
24.182
T rates per $1,000 of assessed taxa ble va
83
CITY OF EDGEWATER, FLORIDA
SPECIAL ASSESSMENTS COLLECTIONS
LASS" TEN FISCAL YEARS
4
Water and Seaver
Fund since Levy
Road
Assessments
Current
Current
Current
Current
is c a
Assessments
Assessments
Assessments
Assessments
Yea
Due
Collected
Due
Collected
1996
529,579
608631
238,813
298,767
1997
554,850
644,377
251,480
288
1998
580,364
624
265,575
293,139
1999
008,750
6552258
281 ,544
299,546
2000
838,209
684,687
297,401
3100973
2001
670,901
762,235
31 5,347
341
2002
731,162
823
352,167
383,260
2003
762 r 55
834 1 005
369,351
399,888
2004
7953000
845
390,000
402,421
2005
825,311
889,393
408,869
420,588
4
CITY OF EDGEWATER, FLORIDA
COMPUTATION of OVERLAPPING DEBT
September 30, 2005
Percentage City of
Applicable to Edgewater
Net Debt the City of Share of
Overianping Governments Outstanding Edgewater Debt
Volusia County School District $ 395 700 2.76% $10
Total overlapping debt $ ' 9,906,169
1 Data provided by above agencies.
The City does not have any general obfigafion long -term debt outstanding.
85
CITY OF Er GEWATER, FLORIDA
D EMOGRAPHIC STATISTICS
Last Ten Fiscal Years
1 Obtained from University of Florida, Bureau of Economics and Business Research.
Census Bureau estimate for April 2000 and City of Edgewater planning Dept.
2 Obtained from V olusla County Supervisor of Elections.
3 Obtained from U.B. Department of Commerce, Bureau of Economic Analysis.
State of Florida, Department of Labor and Employment Security.
Vclusia County School Board - includes grades K-5, } Ed ev ater Elementary School and
Indian River Elementary school
(6) Volusia Canty - Census Bureau (2000)
E
4)
(
County
School
Fiscal
Estimated
Registered
Per capita
Unemployment
Percent
Median
Y ear
Population
Voters
Income
Rate
Enrollment
Attendance
1996
17,829
11
18,815
4.2%
1,524
95
-
1 997
18
11 ,196
19 455
4.0%
11546
95
1998
18
11 t 821
19 787
3.2%
1
9
1999
18,865
'1 '1 , 786
20,309
3.0%
1 T 4 4
95
47
2900
19,343
12
21
2.9%
1,491
9
-
2901
1 93399
12,484
22,520
4.0%
1 ,467
9
2092
19
12,496
23
5 .3%
1
9
--
9 3
20
1 2,763
23,832
5.2%
1 ,412
95
4
2994
203637
14 F 79
19,460
4.5%
1
95
-
2005
1 1 1 6
14
22 t 582
3.4%
1
96
43
1 Obtained from University of Florida, Bureau of Economics and Business Research.
Census Bureau estimate for April 2000 and City of Edgewater planning Dept.
2 Obtained from V olusla County Supervisor of Elections.
3 Obtained from U.B. Department of Commerce, Bureau of Economic Analysis.
State of Florida, Department of Labor and Employment Security.
Vclusia County School Board - includes grades K-5, } Ed ev ater Elementary School and
Indian River Elementary school
(6) Volusia Canty - Census Bureau (2000)
E
CITY Off' E G 11 T, FLORIDA
PROPERTY AL CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(In Thousands)
1 Provided by Florida Bankers Association
(2 ) Obtained from revised recapitulation of the ad valorem assessment roils of the City of Edgewater
3 Provided by City of Edgewater Building Department
8
(1)
()
Deposits
(2
Assessed
Commercial
residential
Fiscal
Construction
construction
Year
Units
Value
Units
Ile
1996
13
..2
124.
10,058
1997
20
21224
105
71626
1998
35
2 } 465
116
9
999
11
1 t755
201
15
2009
23
601743
195
19,077
2001
9
1
285
28
2902
17
3
226
23
2003
17
4,052
281
29,6028
2004
1 1
2
226
27
2005
12
4
291
38,048
1 Provided by Florida Bankers Association
(2 ) Obtained from revised recapitulation of the ad valorem assessment roils of the City of Edgewater
3 Provided by City of Edgewater Building Department
8
(1)
( 2 )
Deposits
Savings
Assessed
Bank
and Loan
V alue
96,342...
87,419
516 2 875
190 } 381
-
542,399
209,575
561
291
572
201
-
589
206, 981
-
6322205
206,960
694,658
215,130
-
842
2160,213
974 165
230,486
1 t 009 t 7
1 Provided by Florida Bankers Association
(2 ) Obtained from revised recapitulation of the ad valorem assessment roils of the City of Edgewater
3 Provided by City of Edgewater Building Department
8
CITY OF EDGEWATER FLORIDA
SUMMARY of TEN LARGEST SINGLE WATER USERS
September 3, 2005
Customers
Average
Consumption Percent o f
Per Month Total Gallons
(G „1.,!,..4,1, consumed
County of olusia
10J56
3.3910
Eastern Shores Mobile 'Village
488,439
0.64
Coronado Paint Company
420 x 252
0.55%
Halifax Court (Hendry)
127
0, 7%
lolusia County Schools
146,917
0.19%
Blue Gables, Inc. 4Nac t Inc.
95
0.13%
Pyramid Park
70,91 1
0.10
Friendly Shores HC A
64,298
0.08%
Publix Supermarkets, Inc. Showplace )
80 # 613
0.11%
Winn Dixie 4Spl hores
51,320
0.0
1 ! , 709, 872
1 5.43%
FY-2005 average monthly consumption: 75,043,1 gallons
1 Based on individual meter connections per City Edgewater, Florida records
(2 ) The total average monthly consumption for the ten largest water users increased from
the previous year by the total of 3,281,566 gallons.
43 Water restrictions implemented by the St. Johns liver Water Management District,
Volusla Counter, and the city of Ed gewater continue to b in effect. Reclaimed water has
been available to the Florida Shores area since 1 994.
..
CITY OF EDGEWATER, FLORIDA
PRINCIPAL TAXPAYERS
September 30, 2005
Customers
Florida Power & Light
308 Realty, LLC
Sisre LLC
3050 Holdings, LLC
BellSouth Telecom mun i ation s , Inc.
ra Scotts
B right Douse Networks, rks, LL
Bel Aire Investments, Inc.
Seaedge Partners, LL
Edgewater Harbor, LLC
Percent of
Assessed Total Assessed
Valafo Valaor
1038392554
.07 °
4,785, 181
0.47%
41142p6O7
0.
8,745
.........0.37%
3,645,1 1
0.36%
143,132
31 %
23932,915
8.29%
2;538,000
0.25%
2,535
0.25%
2 A62 1 769
0.2410
40,778
4.04%
Source.- 2004 ad valorem tax rolls of the City of Edgewater, Florida. DR-403 AM
F - 2005 total assessed valuation
1,000,447
0
CITY OF E GEWA ER, FLORIDA
MISCELLANEOUS STATISTICAL DATA
September 30, 2005
The City of Edgewater lies just south of New Smyrna Beach, along the Atlantic coastline.
Beginning as the small village of Hawk's Park with I 15 permanent residents in 1 871, the name
was formally changed to Edgewater in 1926. The aplanes of the early days evolved into a large
honey company which export inter ationally. A large paint factory, a thdving building industry,
boat building, garment factories and other light manufactudng provide employment, A friendly
city with a small town flavor, Edgewater has a wide variety of residential options.
City Operations:
Police Department:
om Officers 3
Civilian Employees
Reserve Officers
Fire Department:
Insurance rating
Class
Number of Stations
Full -tine firefighters
27
Volunteer firefighters
Civilian employees
Animal Control
Deserves
I
City Parks (Active and Open Space)
76 Passive
74 Active
Park acreage
150
Community Facilities,
Financial Institutions
Churches
14
Libraries
1
Post Me Locations
I
Dearest Commerdial Airport
Daytona Beach intemational
Electric Service
Florida Power & Light
Telephone Service
Bell Sant
Cable TV Service
13(ighthouse network
arbaelTrash Collection:
Type
Plakupsfwk
Re identiai service
17.10
Dornmerciaillndustrial service
2 $ 19.10
Retying
1 1.70
Water Service;
Source
Florida Upper Aquifer
Plant Capacity
5,0 mgd
Average daily demand
1.765 m9d
Treatment
time softening
Monthly residential and commercial ercial rates;
Effective 10/1194
Sewer Service:
System type
Advance Wastewater Treatment
Average daily flow
1.181 mgd
Plant capacity
2.75 mgd
Avg. Capacity used Daily
4 %
Avg. Daily Reclaimed Water
1.13 mgd
Reclaimed .
Consumption
Water Seger
Minimum
$ 8.10 9.77
Additional 1,000 gallons
1.28 3.26
Stormwater Management Fee
E,f#ecUve 1€11194
Per equivalent drainage unit (EDU
Without site mitigation
$ 6.pD
With site mitigation
2.92
01
CITY OF EDGE AT R, FLORIDA
TITER AND SEWER SYSTEM
HISTORICAL RICA DEBT SERVICE COVERAGE SUMMARY
September 3, 2005
Surplus Revenu
FY2001
FY 2002
FY2003
FY 2004
FY 2805
perabng Revenues:
310,000
City Transfers (outside o 0 & M Expenses above)
- - 500,000
115,000
1,005,000
User Charges
4,428, 520
4,530,617
4,808,221
5,403,409
5,772,910
Interest Inc
353,547
1 66,687
11 ,998
1,9L
35,345
Connection Fees
187 357
200
1
2 3,326
2 4 0
Total
4,949,424
4,898,298
5,108,991
5,657,904
6,013,236
O perafing Expenses
2,901 684
... 3 $ 047, 196
3,300
3,747,041
3,1 59,111
Net Revenues
2,047,740
1,851,102
1,808,586
1,916,863
2,854,125
A vailable Impact Fees
502,881
502,468
503,182
503,
502,542
Total Revenues Available for Debt Servi
2,550,
2,353,570
2,311
2,414,045
3,356,656
Sr. Lien Debt Service
Total Series 1991 .1993
1,057
1,066,812
1,068,328
1,068,328
1,066,963
Rate Coverage
N Revenues nl� 0x R
1.92
1.74
1.69
139
2.67
N et Re venues veues W1 I Fee
2.3
2.21
2.16
2.26
3,16
A vailable Net Revenues & impact Fees For
SRI" Debt
1
1,286,758
1,243,440
1,345,717
2,289,699
Special Assessments
762,235
823,170
834,005
845,063
889 303
Total Revenues Available for S RF Debt
2245,169
2,109,928
?,077,445
2,190,780
3,179,092
SRI^ Bonds
1,811,437
1,811,437
1,811,437
1,811,437
1,811,437
C overage ( 1 . 15x F eq)
1 .24
1.16
1.15
1.21
1.76
Net Revenues For BOA Loan
433,732
298,491
266,008
379,343
1,367,655
Speci Assessments
-
-
144,592
303,116
Impact Fees
500,000
500,000
500,000
-
Total Revenes for Jr. Lien
BOA Bank moan
433,732
798,491
766,008
1,023,935
1,760,770
Junior Lien Bonds
588,340
588,340
588,340
588,340
568,340
Coverage (1.10x Required)
0.74
1.36
1. 30
1.74
2.99
Surplus Revenu
15{4,?08
1 210,151 177 668
435 695
'x,'172
R & R Fund `ran tors
278,780 276,222 270,809
270,809
310,000
City Transfers (outside o 0 & M Expenses above)
- - 500,000
115,000
1,005,000
B al an a
X33, 383 , 071 503,1 1
49,786
142,570
OTHER REPORTS
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r ii
M CDIRMIrl IJ
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
REPORT ON INTERNAL AL. C NT OLR OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS LASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOV RNMENT A ITING STAN ARDS
%
The Honorable M ayor and City Commi ssioners
City of Edgewater, Florida
Edgew Florida
We have audited the basic financial statements o f the City of gewater, Flor as of and for the
year ended September 30, 2005, and have issued our report thereon dated January 13, 20 0&
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
uditin . Standards, issued by the Comptroller General of the United States.
internal Control Over Financial Reporting - In planning and performing our audit, we
considered the City of Edgewater, Florida's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinion o the basic financial
statem a nd n t o provide assuran on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all
matters in the internal control over financial reporting that might be material weaknesses. A
material weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively lour level the risk that misstatements in
amounts that would be material in relation to the basic financial statements being audited may
occur and not b e detected within a timely period by employees in the normal course of performing
their assigned functions. We noted no rnatters involving the internal control over financial reporting
and its operation that we consider to be material weaknesses. H owever, we noted other matters
involving the internal control over financial reporting that we have reported to management of the
City of Edgewater, Florida in a separate letter dated ,unary 1, 2006.
Compliance and Die Matters - s part of obtaining reasonable assurance about whether the
Ci o E Florida's basic financial statements are free of material misstatement, we
performed tests of its compliance with certa provisi of lags, 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. However, we noted certain
immaterial instances of noncompliance that we have reported to management of the, City of
Edgewater, Florida in a separate letter dated January 1 3, 2006.
MCDIRMIT DA VIS & COMPANY, LLC
605 E. ROB INSON IN TREET, €11TE 635 0 OR LANDO, F LORIDA 32801
TEL.E- 1i0? 407- 843-5406 ° F Ax 407- 649 - 9339 ° AIL: 1N1
MEMBERS. PRIVATE COMPANIES PRACTI SKMN • M ,� 1CAN INS 7tTVTE O F CF9,TIF1�'D PU BLIC ACCOUNT ANTS • PLOPI NST M, OF C ERTIFIED P UBLIC A
92
This report is intended solely for the i nformation and use of management, ent, tine City Commissi
and the Auditor General of the State of Florida and is not intended to b e, and should not be used
b anyone other than these specified parties.
�[L�mitG�vr� & �e,n�cvu�cc6
.January 13, 200
93
ivi- CDIRMIT DAVI
CERTIFIED Pi1BL,IC ACCOUNTANTS AND ADVISORS
REPORT CAN COMPLIANCE WI REQUIREMENTS APPLICABLE To THE MAJO
PROGRAM AND INTERNAL COQ T# OL OVER COMPLIANCE IN ACCORDANCE WITH
OMB CIRCULAR A-13
The Honorable Mayor and City Commissioners
City of Edgewater, Florida
Edgewater, Florida
Compliance
We have audited the compliance of the City of Edgewater, Florida with the types of compliance
requirements described in the U.S. Office of Management and Budget 1 C ircular A -933
Compliance Supplement, that are applicable to the major federal program for the year ended
September 30, 200 5. The City of dgew ter ' major federal program is identified in the summary
of auditor's results sec tio n of the accompanying Schedule of Findings a n d Questioned Co sts,
Compliance rith the requirements of lags, regulations, contracts and grants applicable to its
rnaj0or state pr oject is the responsibility of the City of Edgew Florida management. Our
responsibility is to express an opinion on the City of Edgewater, Florida compliance ba sed on our
audit.
We conducted our audit of compliance a ire 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
O MB Circular A -133, Audits of states, Local Goverrrmen s, and Non-Profit Organizations. Those
standards, and OMB Circular A -133 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 federal program
occurred. An audit includes examining, on a test basis, evidence about City of E dgewater, Florida
compliance vVith 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, our audit does not provide a legal determination on the City of Edgewater, Florida
compliance with those requirements.
In our opinion, the City of E dgewater, Florida, complied, in all material respects, with the
requirements referred to above that are applicable to its major federal program for the year ended
September 30, 2005.
.MCDI MIT D AVIS & COMPANY, LLC
605 E. R BINSO S 7Rf �T. C.F iTT 635 ° RLANDo, FLORIDA 3280
TELE PHONE 407 • FAx 407-649-9339 # IL: IN-F0 rr [)1 1'r A 1 .00
ME MBERS'. 1 "RIVATE COMi'ANIFSa PEtAC' (%,c. E-c:TpN * l NAFR)CAN INSTITUTE of CERTIFIED 1'IJRu ACC OU TANTS * FLORIDA INST ITUTE of C VRTIFKM Pun ic ACCOUNTANTS
Internal control Over Compliance
The m anagement of the City of Edgewater Floridan is responsible for establishing and maintaining
effective intemal l control over compliance with requirements of lags, regulations, contracts and
grants applicable to federal programs. In planning and performing our audit, we considered the
City of gew ter, Florida intemal control over compliance c with requirements that could have a
direct and materi i effect on a major federal program in order to determine our auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on
internal control over compliance in accordance with COMB circular -133.
Our consideration of the intemal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components does
not reduce to a relatively low level the risk that noncompliance with applicable requirements of
laws, regulations,. contracts r d grants that would be material in relation to a major state program
being audited may occur and not be detected within a timely period b y employees in the normal
course of performing their assigned functions. We noted no mafters involving the internal control
over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management of the City, the Auditor
General of the State of Florida and federal awarding agencies and is not intended to be are
should not be used by anyone other than these specified parties.
WISM =A PT
M % r PA 71
January 13, 2006
95
CITY OF EGlATR, FLORIDA
SCHEDULE PENDITURES
OF FEDE AL A11 ARDS
Year Ended September 30, 2005
r" a s -th ` uI
Federal Grantor/Pass4hrough
Federal E n i
Federal
Grantor/Program title
CF DA No. Number
Ex enditure
U. S. Department of Homeland Security:
Federal Emergency Management Agency
Public Assistance Grants
97.036
$1
Federal Emergency Management
Agency Assistance to Firefighters
Grant
97.044
123
Total U.S. Department r ent f Homeland
Security
298 101
U.S. Department of Justice:
Office of Justice Program
Local Law Enforcement Block Grant
16.592
6,847
Total expenditures of federal awards
$13041 DA 8
See accompanying rotes to schedule of expenditures of federal awards
CITY EWAT , FLORIDA
NOTES TO SCHEDULE P N TUBES OF FEDERAL AWARDS
Year Ended September 30, 2005
Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant 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 COMB Circular A-
133. Audits of States, Local Governments, and Non-Profit i rgan Lions. Therefore, some
amounts presented in this schedule may differ from amounts presented in, or used in the
Preparation of, the basic financial i stater ents.
CITY OF EDGEWATER, FLORIDA
SCHEDULE of FINDINGS AND QUESTIONED COSTS
FEDERAL AWARDS
Year Ended September 30, 2 005
A. Summary of Auditor's Findings
1. The auditor's report expresses am unqualified opinion on the financial statements of the
City of Edgewater, Florida.
2, No instances of noncompliance material to the financial statements of the City of
Edgewater, Florida were disclosed during the audit.
3. The auditor's report on compliance for the major federal award for the City of Edgewater,
Florida, expresses an unqualified opinion.
4. The program tested as major program `included the following:
Federal
. 0 FDA A o.
I.Q.S. Department of Homeland Security public
Assistance Grant 97.03
5. The threshold for distinguishing ng Typo A and Typo B programs /projects was $500,000 for
major federal a wards.
WIM
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`�w�
MANAGEMENT ET A ER
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1 1aR ' Y. • �r1
1
MCD IRMIT fff
CERTIFFED PUBLIC ACCOUNTANTS AND ADVISORS
MANAGEMENT LETTER
Ho n o rable Mayor and City Cou
City of Edgewater, Florida
In planning and performing our audit of the basic financial statements of the City of Edgewater,
Florida for the year ended September 30, 2005, we considered its internal al control to determine our
auditing procedures for the purpose of expressing our opinion on the financial statements and not to
provide assurance on internal control. The,following findings and recommendations, which resulted
from our c onsideration of internal control, pre submitted to assist in improving procedures and
controls. In addition, this report includes other disclosures required by Rules of the Auditor General,
State of Florida.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America eric and the standards applicable to financial audits contained in Government uditing
Standards, issued by the Comptroller General of the United States. We have issued our Deport on
Internal Control over Financial Deporting and Compliance and Other hatters, in accordance with
Go error ant Auditing Stan ar l , Deport on Compliance and Internal Control over Compliance nce in
accordance with OMB Circular A -13 , and Schedule of Findings and Questioned Costs, D isclosures
in those reports and schedule, which are dated January 13, 2006, should be considered In
co njunction with this management lefter.
This management lefter is intended solely for the informa of the City of rewa er, Florida and
management, ement, and the state of Florida Office of the Auditor General and federal awarding agencies
and i not intended to be and should not b e us e d by any o ther th those specified parties.
qQLunit Lht�id & ernpcuu� LLC
January 13, Zoo
M DAMS & COMPANY, LC
005 E. Ro RIN ON' S S UITF, 635 O RLAN. Do, F C..oRIDA 3 801
F-ix -P 0Nf-- 407- 843 -5400 • FAx 407 -- 649 -9339 • EMAIL.: )NF VMCD1 M[T Vx .0
r;h' ERS'r PRIVATL C OMPANIFS PRAC.M K *i�MER N' TATUTC O F 0` 87 I VIED PUBLIC ACCOUNTANT - FE,€7i RDA IN STITUTE O FRTIF +FD PUI LicACCOUNTANTS
Management Commcibntt
City of Edgewater, Florida Page Two
A . Status of Prior Ye ar Recommendations
1 . Financi Condition Ass doted i
The City continues to have several unfavorable ratios as discussed above under
status of prior year recommendations. The general fund had a deficit of revenue
over expenditures of approximately $2,000,000 before transfers in from other
funds and sale of land held for resale. The transfers in from the grater and surer
fund increased from $500,000 in 2003 to $1,1 50,000 in 2004.
R ecommendation for 2005
We recommended the City t ake steps to balance the general fund budget without
relying on such large transfers in from the water and severer fund. The City must
set goals to increase the ratio of unreserved general fund balance to general fund
operating expenditures to at least 15 %. The City Charter requires the City
maintain reserves of at least 15%. The City Charter requires the city maintain
reserves of at least 15% of general fund expenditures.
Corrective Action Taken
At September 30, 2005, the ratio of unreserved general fund balance to general
fund operating expenditures is 10.5 %. The ratio at September 30, 2004 was %,
so the City has made considerable progress in reaching the 15% requirement of
the City Charter.
2. Deficit Fund Eguity (Noted in 2004
4 �j
The Storm water Management Fund has a deficit unrestricted net asset balance
f$36 ,119.
R ecommendation for 2005
We recommend the City carefully review the budget for this fund and determine
ghat must he done to increase revenues or decrease e
Corrective Action Taken
A t September 30, 2005, the unrestricted net asset balance of the Storm water
Management Fund is a deficit of $748,608. The financial condition of this fund
continues to deteriorate and the city needs to determine what to do to reverse
this deteriorating financial condition.
100
Management Comments
City of Edgewater, Florida 'age Three
3. Excess Expenditures Over ApDropflations (Noted in 20
Actual expenditures exceeded appropriations in the following funds: special Law
Enforcement Trust special Revenue Fund, 21 ,836; Police Impact Fees special
Revenue Fund, $5,245; and Fire Impact Fees Special revenue Fund, $20,245.
R ecommendation for 2005
We recommend the City amend the budget as allowed by Florida Statutes within
o days of year end so that expenditures do not exceed appropriations.
Corrective Action Taken
At September 30, 200 5, no funds had expenditures in excess of appropriations.
B current Year Recommendations
1. Deficit Fund Ea uity
The Stormwater Management Fund has a deficit unrestricted net asset balance of
$748 at September 30, 2005. Current assets at September 30, 2005 are only
$92,995 compared to current liabilities of $1
R ecommendations
We strongly recommend a rate increase and cost savings measures be done to
reverse this deteriorating financial condition in the stcrmwater Management Fund.
2. Budget Amendments
During 2005 the Grants Special revenue Fund was set up by moving budget
amounts for revenue and expenditures from the General Fund and the recreation
Impact Fees Special revenue Fund to the Grants Special Revenue Fund. Total
appropriations for the General Fund decreased and Grant Fund appropriation
increased by the same amount. In addition, transfers out of the Recreation Impact
Fees special Revenue Fund were changed by the same amount as transfers In to
the Grants Fund, The net amount of these transactions did not increase total
appropriations of the city's governmental funds for fiscal year 2005, however, they
should have been authorized b the city Council.
Recommendation
We recommend that any budget et revision that alter the total appropriations are any
fund be approved by City Council within 60 days of year end as allowed by Florida
Statutes.
1
Management Comments
City of Edgewater, Florida Page Four
C. Comments Regui the Rules of the Auditor General
The financial report filed with the Department of Banking and Finance pursuant to
Section 218.32(l )(b), Florida Statutes, is in agreement in all material respects Wth
the annual financial audit re port for the sane period.
2. The City has not met any of the conditions described in Section 218.603(l) Florida
Statutes.
3. The city of Edgewater, Florida, has complied plied with Section 218.415, Florida
Statutes, regarding the investment of public funds, except as note above.
4. As required by the Rules of the Auditor General Section 10.554 6 0 and
10,556(8), we applied financial condition assessment procedures.
1