City of Cocoa Beach, Florida

Transcription

Comprehensive Annual Financial Report
Fiscal Year Ended
September 30, 2011
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
September 30, 2011
Prepared by:
Finance Department
February, 2012
Intentionally Blank Page
ii
Table of Contents
For the Year Ended September 30, 2011
Page
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
City Officials & Management Staff
City Organization Chart
Certificate of Achievement
iii
vii
xiv
xv
xvi
FINANCIAL SECTION
Independent Auditors’ Report
Management’s Discussion and Analysis
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets
Statement of Activities
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund
Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
Statement of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual - General Fund
Statement of Net Assets - Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net
Assets - Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Statement of Fiduciary Net Assets - Fiduciary Funds
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds
Notes to Financial Statements
Required Supplementary Information (RSI):
Schedule of Funding Progress (Pension Plans)
Schedule of Employer Contributions (Pension Plans)
Narrative Summary (Pension Plans)
Narrative Summary (OPEB Obligation)
Schedule of funding Progress (OPEB Obligation)
Schedule of Employer Contributions (OPEB Obligation)
iii
3
5
19
20
22
23
24
26
28
31
32
34
35
37
82
83
84
85
85
86
Table of Contents
Page
Other Supplemental Information:
Combining Balance Sheet - Non-major Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Non-major Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual - Metered Parking Special
Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual - Confiscated Property Special
Revenue Fund
89
90
91
92
STATISTICAL SECTION (Unaudited)
93
Table of Contents & Additional Notes
Financial Trends:
Net Assets by Component
Changes in Net Assets
Fund Balances - Governmental Funds
Changes in Fund Balances - Governmental Funds
Revenue Capacity:
Value of Taxable Property
Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Debt Capacity:
Ratios of Outstanding Debt by Type
Direct and Overlapping Governmental Activities Debt
Pledged Revenue Coverage
Demographic and Economic Information Financial Trends
Demographic and Economic Statistics
Principal Employers
Operating Information
Full-time Equivalent City Government Employees by
Function/Program
Operating Indicators by Function/Program
Capital Asset Statistics by Function/Program
iv
95
96
98
99
100
101
102
103
104
105
107
108
109
110
111
112
Table of Contents
Page
COMPLIANCE SECTION
Independent Auditor’s Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with Government
Auditing Standards
Independent Auditor’s Report on Compliance with Requirements that
Could Have a Direct and Material Effect on Each Major Federal
Program and on Internal Control Over Compliance in Accordance
with OMB Circular A-133
Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Independent Auditors’ Management Letter
Response to Independent Auditors’ Management Letter
v
114
116
118
119
122
124
vi
xiii
CITY OF COCOA BEACH
Elected Officials & Management Staff
Mayor and City Commission
Leon “Skip” Beeler
David Netterstrom
Kenneth Griffin
Kevin Pruett
Skip Williams
Mayor
Elected 11/17/11
Vice Mayor
Commissioner
Commissioner
Commissioner
Charles J. “Chuck” Billias, City Manager
Management Team
Darby Blanchard
Tony Caravella
Ryan Duckworth
Charles H. Holland, Jr.
Bryan Holmes
A. J. Hutson
Lori Kalaghchy
Laird McLean
Joanie Regan
Jerry Stansfield
Jeff Thiel
Robert Torres
Joe Tucker
Sara Joyce-Webb
Director of Water Reclamation
Development Services Director
(Appointed 11/17/11) Fire Chief
Finance Director
Police Chief
Asst. City Manager/Personnel Director
City Clerk
Recreation Supervisor
Stormwater Program Coordinator
Public Information Officer/Grant Writer
Information Technology Director
Public Works Director
Golf Course Manager
Pool Manager
xiv
CITY OF COCOA BEACH
ORGANIZATION CHART
City Commission
Community
Redevelopment
Agency
METERED
PARKING
FUND
GOLF FUND
&
Dept.
City Clerk
City
Manager
City
Attorney
Advisory
Boards
GENERAL
FUND
&
Depts.
UTILITIES FUND
&
Dept.
STORMWATER
FUND
&
Dept.
Finance
Personnel
Recreation
Development
Services
Police
Information
Technology
Public Works
Communications
xv
General
Appropriations
Fire
2
Management’s Discussion and Analysis
Management’s discussion and analysis is designed to (a) assist the reader in focusing on
significant financial issues, (b) provide an overview of the City’s financial activity, (c) identify
changes in the City’s financial position, (d) identify any material deviations from the financial
plan, and (e) identify individual fund issues or concerns. Readers are encouraged to consider
the information presented here in conjunction with additional information that we have furnished
in our letter of transmittal in the Introductory Section of the report.
FINANCIAL HIGHLIGHTS
The assets of the City of Cocoa Beach exceeded its liabilities as of September 30, 2011 by
$ 61,376,494 (net assets). Of this amount, $ 11,191,200 (unrestricted net assets) may be
used to meet the City’s ongoing obligations to citizens and creditors.
The City’s total net assets were increased by $ 1,173,186 over the FY 2010 ending balance
of $ 60,203,308. The increase was shared between governmental activities ($ 744,879) and
business-type activities ($ 428,307).
At September 30, 2011, the City of Cocoa Beach’s governmental fund balance sheet
reported a combined ending fund balances of $ 11,129,580, an increase of $ 93,437 from
the FY 2010 ending fund balance of $ 11,036,143. Of this amount, $ 5,691,311 remains in
the General Fund of the City as unassigned fund balance.
The General Fund reported a total fund balance of $ 9,892,144 at year end, a decrease from
last fiscal year of $ 20,070. The ending fund balance in FY 2010 was $ 9,912,214.
Total external debt decreased $ 410,478 in fiscal year 2011.
MAJOR INITIATIVES
Recommendations to make streetscape improvements in the downtown area are under
consideration. The voters authorized the establishment of a community redevelopment area
(CRA) for downtown on January 29, 2008. A formal budget was approved in FY 2011 and
tax increment financing should be in the FY 2014 budget.
A construction contract for the Ocean Beach Boulevard project was awarded in FY 2010.
This multi-year project began in FY 2006. We received grant funding from several agencies
and this complex project was completed in FY 2011.
A dredging project for the 400 Channel was approved by the Army Corps of Engineers and
was partially funded by a grant from the Florida Inland Navigation District (FIND). This
project was completed in FY 2011.
A multi-year dredging project for the 200 Channel with a projected cost in excess of one
million ($ 1,000,000) dollars was approved in late FY 2011. The initial phase, spoil site
permitting and preparation, is underway. We expect virtually all project costs to be eligible
for grant funding by FIND and those grants to reimburse fifty (50%) percent of the project
costs.
5
Improvements are underway to enhance a five (5) acre property acquired in 2001 for
conservation purposes. The design includes a one (1) acre alum-enhanced pond and will
also include a nature trail and passive recreation features. The pond is complete and the
site plan review for the other features is also complete. The project is now scheduled for
completion in FY 2012, pending notice of receipt of grant funding. This facility will assist in
handling stormwater runoff in the area and from State Road A1A. Funding includes
reimbursable grants from the Florida Department of Environmental Protection, St Johns
River Water Management District and the Florida Department of Transportation.
A roadway project involving upgrades and improvements to the median strip on state road
520 has been approved and will be partially funded by a grant from the Florida Department
of Transportation (FDOT). This project should be completed in FY 2012.
The wastewater facility plan is a multi-year project with an estimated cost of about eighteen
million ($ 18,000,000) dollars. See notes to financial statements (Note O) for more details.
Overview of the Financial Statements. This discussion and analysis is intended to serve as
an introduction to the City of Cocoa Beach’s basic financial statements. The basic financial
statements are comprised of three components: 1) government-wide financial statements, 2)
fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City’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 year. 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
flows. Thus, revenues and expenses are reported in this statement for some items that will
result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges to external users (business-type activities). The governmental activities of the
City include general government, planning and zoning, public safety, transportation, sanitation,
street and park maintenance, public improvements and recreation. The business-type activities
of the City include a golf course, wastewater treatment/reuse and stormwater management.
The government-wide financial statements include only the City of Cocoa Beach itself (the
primary government). The Cocoa Beach Public Library is funded through the Brevard County
Free Public Library District, a separate taxing authority and is not included under the reporting
entity definition in the City’s financial statements.
6
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City
of Cocoa Beach, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City of
Cocoa Beach can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
During FY 2011, the City of Cocoa Beach maintained three (3) 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 which is a major fund. Since the Metered Parking Fund and Confiscated Property
Fund are not considered to be major funds, data from those funds are combined into a single,
aggregated presentation. The City of Cocoa Beach adopts an annual appropriated budget for
its governmental funds. A budgetary comparison statement has been provided for the General
Fund to demonstrate compliance with this budget.
Proprietary funds. This category of funds includes both enterprise and internal service funds.
However, the City does not use internal service funds. The City does maintain three (3) funds
which are considered enterprise funds. The City uses enterprise funds to account for its golf
course, waste collection/disposal/reuse water system, and stormwater management system.
Proprietary funds provide the same type of information as the government-wide financial
statements. The proprietary fund financial statements provide separate information for the Golf
Course Fund, Utilities System Fund, and Stormwater Management Fund, each of which are
considered to be major funds of the City.
7
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 statement because the resources of those funds are not available to support the City’s
programs. The City has three (3) pension (General Employees, Police, & Firefighters) trust
funds, and an OPEB trust fund. Financial information for these funds is provided in the notes to
the financial statements.
Notes to the financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government-wide and fund financial
statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The government-wide financial report represents the approach mandated by the Governmental
Accounting Standards Board (GASB). GASB sets the uniform standards for presenting
government financial reports.
As noted earlier, net
assets may serve over
time
as
a
useful
indicator
of
a
government’s financial
position. In the case of
the City of Cocoa
Beach, net assets were
$ 61,376,494 at the
close of the most recent
fiscal year.
This is a $ 1,173,186
increase in net assets
over the $60,203,308
reported in FY 2010.
MILLIONS OF DOLLARS
70
SCHEDULE OF NET ASSETS
60
50
40
30
20
10
0
Total
Business-type
NET ASSETS
FY 2011
8
FY 2010
Governmental
The City’s net assets totaled $ 61,376,494 at the end of FY 2011. The largest portion of the
City’s net assets reflects the investment in capital assets (e.g. land, buildings, machinery, and
equipment). Although the City’s investment in its capital assets ($ 49,874,233) (81% of total net
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. The City uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending.
Schedule of Net Assets
Governmental
Activities
Current and other
assets
Business-type
Activities
2011
2010
2011
$
3,499,863
Total
2010
$
2011
2010
$ 12,007,096
$ 11,895,106
3,365,437
$ 15,506,959
$ 15,260,543
Capital assets
19,068,421
18,310,910
34,686,664
35,045,899
53,755,085
53,356,809
Total assets
31,075,517
30,206,016
38,186,527
38,411,336
69,262,044
68,617,352
Long-term
liabilities
outstanding
1,842,132
1,681,042
3,800,887
3,930,304
5,643,019
5,611,346
Other liabilities
1,575,889
1,612,357
666,642
1,190,341
2,242,531
2,802,698
Total liabilities
3,418,021
3,293,399
4,467,529
5,120,645
7,885,550
8,414,044
Invested in capital
assets, net of
related debt
18,708,421
17,780,910
31,165,812
31,284,569
49,874,233
49,065,479
Restricted
Unrestricted
Total net assets
205,435
201,550
105,626
112,840
311,061
314,390
8,743,640
8,930,157
2,447,560
1,893,282
11,191,200
10,823,439
$ 27,657,496
$ 26,912,617
$ 33,718,998
$ 33,290,691
$ 61,376,494
$ 60,203,308
An additional portion of the City of Cocoa Beach’s net assets, $ 311,061 (less than one percent)
represents resources that are subject to external restrictions on how they may be used. The
remaining balance of unrestricted net assets ($ 11,191,200) (18%) may be used to meet the
government’s ongoing obligations to citizens and creditors within the respective governmental
and business-type activities.
At the end of the current fiscal year, the City of Cocoa Beach is able to report positive balances
in all three (3) categories of net assets as a whole and individually within the governmental and
business type activities.
The following display of Changes in Net Assets shows the governmental and business-type
activities during the fiscal year. The increase in net assets resulted primarily from reductions in
non-current liabilities and a proactive approach to limit expenditures in the face of declining
revenues.
9
Schedule of Changes in Net Assets
Governmental
Activities
2011
Business-type
Activities
2010
2011
Total
2010
2011
2010
7,774,863
$ 14,386,550
$ 13,117,351
Revenues:
Programs revenues:
Charges for
services
Grants and
contributions
$
6,166,035
$
5,342,488
$
8,220,515
$
1,026,314
639,697
635,021
720,442
1,661,335
1,360,139
Property taxes
6,327,375
6,536,885
-
-
6,327,375
6,536,885
Other taxes
3,651,328
3,761,477
-
-
3,651,328
3,761,477
Intergovernmental
683,612
676,372
-
-
683,612
676,372
Investment earnings
123,315
118,510
79,314
110,547
202,629
229,057
Other
151,322
79,765
-
-
151,322
79,765
18,129,301
17,155,194
8,934,850
8,605,852
27,064,151
25,761,046
General government
3,357,724
3,249,190
-
-
3,357,724
3,249,190
Public safety
8,895,179
8,146,626
-
-
8,895,179
8,146,626
Physical environment
Transportation/public
works
Recreation
Interest on
long-term debt
1,463,330
1,474,627
-
-
1,463,330
1,474,627
3,135,193
1,008,353
3,291,140
967,958
-
-
3,135,193
1,008,353
3,291,140
967,958
General revenues:
Total revenues
Expenses:
15,697
21,608
-
-
15,697
21,608
Utilities System
-
-
4,682,920
4,894,135
4,682,920
4,894,135
Golf Course
Stormwater
Management
-
-
2,821,748
2,691,019
2,821,748
2,691,019
-
-
510,821
586,175
510,821
586,175
17,875,476
17,151,149
8,015,489
8,171,329
25,890,965
25,322,478
Total expenses
Increase in net assets
before transfers
253,825
4,045
919,361
434,523
1,173,186
438,568
Transfers
491,054
441,054
(491,054)
(441,054)
-
-
Increase in net assets
744,879
445,099
428,307
(6,531)
1,173,186
438,568
Net assets, beginning
26,912,617
26,467,518
33,290,691
33,297,222
60,203,308
59,764,740
$ 27,657,496
$ 26,912,617
$ 33,718,998
$ 33,290,691
$ 61,376,494
$ 60,203,308
Net assets, ending
10
FINANCIAL ANALYSIS OF COCOA BEACH’S FUNDS
As noted earlier, the City of Cocoa Beach uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental Funds. The City uses two governmental (General & Special Revenue) fund
types. The purpose of governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the
City’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
As of September 30, 2011, the
City
of
Cocoa
Beach’s
governmental funds reported a
combined fund balance of
$ 11,129,580, an increase of
$ 93,437 from the prior year
balance of $ 11,036,143.
The General Fund is the chief
operating fund of the City. As
of September 30, 2011, total
fund balance in the General
Fund was $ 9,892,144 of
which $ 5,691,311 was
unassigned. As a measure of
liquidity, a comparison of total
and unassigned fund balances
to total expenditures for FY
2011 ($ 18,235,599) & FY
2010 ($ 16,754,766) shows
percentages of 31.2% and
32.4%,
respectively
for
unassigned fund balance.
General Fund
Fund Balance as Percent of Expenditures
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2011
Total Fund Balance
2010
Unassigned Fund Balance
2011
2010
Total Fund Balance
54.2%
59.2%
31.2%
32.4%
Note:FY 2010 fund balance restated for comparative purposes.
The increase in fund balance referenced above is due primarily to the completion of the Ocean
Beach project and receipt of all grant funds associated with this project.
General Fund Budgetary Highlights. A budget to actual statement is provided for the
General Fund. A budget column for both the original budget adopted for fiscal year 2011 as
well as the final budget is presented. A comparison of the original budget to the final budget for
current expenditures shows a final difference of $ 1,658,186. The major portion of the
difference is attributed to the carry over and re-appropriation of incomplete FY 2010 capital
projects ($ 1,814,581) to FY 2011.
11
Special Revenue Funds.
Special Revenue Funds account for specific revenues and
expenditures. The entire fund balance of the Metered Parking Fund is considered committed
fund balance and it increased $ 109,622 from the prior year. The primary reason for the
increase is the meter fee and meter fine increases authorized in FY 2010. Committed fund
balances are budgeted to replace and upgrade the parking meters, replace dune crossovers,
replace police vehicles and the Maritime Hammock Preserve loan payment. See the notes
(Note F) to the financial statements for a detailed discussion of these transfers.
The entire fund balance of the Confiscated Property Fund is considered restricted fund balance
because it can only be used for special purchases for law enforcement purposes. It increased
by $ 3,885 to $ 205,435 for FY 2011.
Proprietary funds. The City currently uses one of the two (Enterprise & Internal Service)
types of proprietary funds, and provides the same type of information found in the governmentwide financial statements, but in more detail.
Enterprise Funds. At September 30, 2011, total net assets amounted to $ 33,718,998 for
enterprise funds as compared to $33,290,691 at September 30, 2010. Net asset changes are a
result of operations, investment earnings, capital contributions and transfers in the Golf Course,
Utilities System and Stormwater Management Funds.
The net operating income (loss) for all of the enterprise funds for fiscal years 2011 and 2010 is
as follows:
Enterprise Funds Net Operating Income (Loss)
Utilities System
Golf Course
Stormwater Management
Total
FY 2011
971,040
(643,481)
112,348
$ 439,907
$
FY 2010
684,219
(681,913)
96,013
$
98,319
$
The operating income in the Utilities System was $ 286,821 greater than FY 2010 primarily due
to a midyear rate increase. A reduction in electrical costs accounted for the remainder of the
increase. These cost reductions are attributed to a continuing decline (i.e. lower fuel adjustment
charges) in rates and the installation of some energy efficient technology in the plant.
The operating loss of the Golf Course decreased $ 38,432 in FY 2011. The re-greening project
is complete. Play has still not returned to historical levels, in part because the economy has
reduced play on all Brevard County public courses, and in part because our usual players have
not returned to our course. However, the Golf Course rate structure must be addressed to
provide adequate revenues. The current system of tying rates to CPI increases is not adequate
to cover increasing operating costs. A workshop was held February 8, 2012 and the staff will be
bringing forward some specific measures to address the situation.
The Stormwater Management operating income increase of $ 16,335 results from increased
analysis work, specifically the identification of unbilled and underbilled accounts.
12
CAPITAL ASSET ADMINISTRATION
Capital assets. The City of Cocoa Beach’s investment in capital assets as of September 30,
2011 amounts to $53,755,085 (net of accumulated depreciation). This investment in capital
assets includes land, buildings, improvements, equipment, infrastructure and work in progress.
Governmental activities net investment in capital assets increased by $ 757,511 and businesstype activities decreased by $ 359,235. Major capital assets transactions during the current
fiscal year included the following:
Schedule of Capital Assets (Net)
Governmental
Activities
2011
Land
$
6,697,356
Business-type
Activities
2010
$
6,697,356
2011
$
2,944,894
Total
2010
$
2,944,894
2011
$
9,642,250
2010
$
9,642,250
Buildings
3,552,536
3,505,433
4,013,370
3,933,105
7,565,906
7,438,538
Improvements
4,189,143
3,534,437
1,674,091
1,688,234
5,863,234
5,222,671
Equipment
2,001,653
2,320,331
504,430
710,790
2,506,083
3,031,121
746,735
745,778
23,546,166
23,261,165
24,292,901
24,006,943
1,880,998
1,507,575
2,003,713
2,507,711
3,884,711
4,015,286
$ 19,068,421
$ 18,310,910
$ 34,686,664
$ 35,045,899
$ 53,755,085
$ 53,356,809
Infrastructure
Work in progress
Total
Major governmental acquisitions included the completion of the Ocean Beach Blvd., 400
Channel, and the Orlando Avenue projects. The major acquisition for the business-type
activities was also the Ocean Beach Blvd. project. This very complex project was completed
and all associated grant funding was received in FY 2011.
The City annually updates a five (5) year Capital Improvements Program (CIP) and forecasts
the funding requirements for necessary equipment and facilities. These requirements, as well
as projected costs of operations and maintenance, are compared and adjusted based on
forecasted sources of funding over that timeframe. Additional information on the City’s capital
assets can be found in the notes (Note G) to the financial statements.
DEBT ADMINISTRATION
Long-term Debt. At the end of the current fiscal year, the City of Cocoa Beach had total longterm debt of $ 3,880,852.
The City is participating in the State of Florida Revolving Loan Program. These are low interest,
twenty (20) year loans. The initial loan was for the Utilities System’s share of the construction of
new Public Works and Utilities facilities and has an outstanding balance of $ 3,520,852. A
second loan for the utilities facility upgrades has been approved. See the notes to the financial
statements (Note O) for additional information.
During the 2003 fiscal year, the City obtained a ten (10) year bank note secured by a covenant
to budget and appropriate non-ad valorem funds for the purpose of purchasing property for
preservation. The principal outstanding on the bank note at the end of the current fiscal year
was $ 360,000. This note retires in FY 2013.
13
Schedule of Outstanding Debt
Governmental
Activities
2011
State Revolving Loan
$
Revenue Note (Bank Loan)
Total
2010
-
$
360,000
$
Business-type
Activities
360,000
2011
-
$
3,520,852
530,000
$
530,000
$
$
Total
2010
3,520,852
2011
3,761,330
$
$
3,761,330
3,520,852
2010
$
360,000
$
3,880,852
3,761,330
530,000
$
4,291,330
The City of Cocoa Beach’s total debt was reduced by $ 410,478 during the 2011 fiscal year.
Additional information on the City’s long-term debt can be found in notes (Note H) to the
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City’s elected and appointed officials considered many factors when setting the fiscal year
2012 budget, tax rates, and fees to be charged for the business-type activities. In the past few
years, the City has obligated significant dollars on street resurfacing, new public works facilities
and property purchases. The City has also managed to accumulate an acceptable level of
unassigned reserves. Bordering the ocean, the City wishes to hold reserve balances sufficient
for those immediate expenditures associated with hurricanes, as well as expenditures required
to maintain normal operations. Although a substantial portion of hurricane expenditures are
typically reimbursed, this practice is considered necessary to avoid disruptions in operations.
Since the City is effectively built-out, new construction is not expected to produce large annual
increases in property tax receipts. It is important to the City’s future that property tax revenues
be maintained or increase from year-to-year because it the largest component of the General
Fund’s annual revenues. In addition, other revenues are not likely to increase significantly and
since some of those sources (e. g. state shared revenues, grants) are beyond the City’s control,
property taxes were the most promising source of future funding. The Great Recession has
reversed this trend. Developing new revenue sources and increasing existing ones are of
increasing importance.
Although the City is challenged by increased costs for employee benefits (primarily health
insurance, workers compensation and pension contributions), it does not face demands to add
personnel in order to extend current levels of service into new areas. Staffing levels are now
at the levels of a decade ago and we have reached the point at which budget problems cannot
be solved by further staff attrition.
The five (5) year Capital Improvements Program (CIP) always presumes that operations and
capital replacements are expected to be sufficiently funded without having to increase the ad
valorem tax rate. We will have a real opportunity to test this presumption in the coming years.
The City’s Golf Course enterprise fund continues to be challenged to sustain its operations and
cover necessary equipment replacements. The high salt content in the area is extremely
damaging to the equipment used for maintenance and funding the maintenance expense and
replacement costs is an ongoing burden. The course has been re-greened with a salt-resistant
grass and hopefully play will recover as the economy improves. The City has constructed a
garage for equipment storage to aid in mitigating the salt issue and selectively purchases used
equipment to lower capital costs.
14
The twenty seven (27) hole golf course is already actively used, particularly in the busy winter
season, so strategies to increase play are marginally helpful, not a solution. The improvements
and purchasing practices mentioned in the preceding paragraph are also helpful, but do not
produce immediate, dramatic results.
The City Commission acted during 2005 to increase the rates and build in an automatic
increase each year based on the consumer price index (CPI). However, the costs above are
not linked to the CPI, so a rate increase above the CPI will be required in the very near (i.e. FY
2012 – FY 2013) future. We are also exploring alternate approaches (e.g. corporate
sponsorships, structural rate changes) to expand the revenue stream.
The Utilities System enterprise fund is in a similar situation. Environmental standards for
discharges into the Indian River Lagoon have become stricter. We commissioned a
comprehensive study in FY 2008 to address specific capital replacements and upgrades
required to meet the new discharge requirements schedule. We enacted a rate increase of
twenty-five (25%) over three (3) years (i.e. 6.7% per year) to secure the necessary debt service
for capital items, as well as cover increased costs of operations and the new regulatory
requirements. See the notes to the financial statements (Note O) for additional information.
Forecasts for the Stormwater Management enterprise fund show that large capital
improvements will have to be funded using grants or loans. Revenues are not sufficient to fund
both operations and capital projects of any size. In addition to the budgetary challenges facing
the Stormwater Fund, federal Clean Water Act legislation concerning the Total Maximum Daily
Loads (TMDL) and National Pollutant Discharge Elimination System (NPDES) programs are
unfunded mandates upon local government and require extensive staff resource time and effort.
Operating costs continue to rise, so a rate increase will be required in the near future. We
estimate a rate increase in FY 2013 or FY 2014.
Staffing is provided by this Fund to operate a canal dredging program, which helps the water
quality and improves boat navigation in the City’s canal system. A portion of the dredging
expense considered to be transportation related is billed to the Metered Parking Fund. We have
currently suspended the dredging program.
All of these factors were considered in preparing the City’s budget for the 2012 fiscal year. The
FY 2012 millage rate is 5.024, the rollback rate. This produces the same ad valorem tax
revenue as the previous year and therefore is not a tax increase. See the economic outlook
section of the letter of transmittal for additional details regarding economic conditions.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Cocoa Beach’s
finances for all those with an interest in the City’s finances. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to
Charles H. Holland Jr., CGFO, Finance Director, 2 South Orlando Avenue, Cocoa Beach,
Florida, 32931 or [email protected]. The financial statements are included in
the City’s Comprehensive Annual Financial Report (CAFR) posted on the City’s web site at
www.cityofcocoabeach.com.
15
16
BASIC FINANCIAL STATEMENTS
17
18
25
30
36
September 30, 2011
NOTES TO THE FINANCIAL STATEMENTS
Table of Contents
NOTE
A.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PAGE
38
B.
RECONCILIATION OF GOVERNMENT-WIDE AND FUND
FINANCIAL STATEMENTS
45
C.
BUDGETS
47
D.
CASH AND INVESTMENTS
48
E.
UNEARNED REVENUE
51
F.
INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
52
G.
CAPITAL ASSETS
54
H.
LONG-TERM DEBT
57
I.
COMPENSATED ABSENCES
61
J.
RESTRICTED NET ASSETS
62
K.
RISK MANAGEMENT
62
L.
EMPLOYER RETIREMENT PLANS
63
M.
OTHER POST-EMPLOYMENT BENEFITS
71
N.
GOVERNMENTAL FUNDS – FUND BALANCE
75
O.
SUBSEQUENT EVENT
77
P.
INFORMATION ITEMS
79
37
September 30, 2011
A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Reporting entity
The City of Cocoa Beach, Florida (the City) is a political subdivision of the State of Florida and is
located in Brevard County. The City was incorporated in 1925 and has a Commission/City
Manager form of government. The City Commission consists of a Mayor and four (4)
Commissioners responsible for establishing policies and enacting ordinances and resolutions.
They are elected at large. The City Commission appoints the City Manager who is responsible for
the daily administration of the City’s operations.
The Cocoa Beach Public Library is funded through the Brevard County Free Public Library District,
a separate taxing authority. The City Commissioners appoint an advisory Library Board that has
authority to propose budget recommendations to the County and provide input in the selection of a
library director. The Library’s actual budget is approved and funded by Brevard County and all its
personnel are governed by the policies and procedures of Brevard County. The Cocoa Beach
Public Library is therefore not a component unit of the City.
The accounting policies of the City conform to accounting principles generally accepted in the
United States of America (GAAP) as applicable to governments. The following is a summary of the
more significant policies of the City.
2. Government-wide and fund financial statements
The government-wide financial statements consist of a Statement of Net Assets and a Statement of
Activities. These statements report information on all of the nonfiduciary activities of the primary
government as a whole. As part of the consolidation process, all interfund activities are eliminated
from these statements, except for the residual amounts between governmental and business-type
activities reported as “internal balances.” Net assets, the difference between assets and liabilities,
as presented in the Statement of Net Assets, are categorized as follows:
a. Invested in capital assets, net of related debt; - the portion of net assets which are
associated with capital assets, less outstanding capital assets related debt, net of
unspent bond and loan proceeds.
b. Restricted net assets - have third party (statutory, bond covenant or granting agency)
limitations on their use, or enabling legislation.
c. Unrestricted net assets - have no third party limitations on their use.
The Statement of Activities presents a comparison between the direct and indirect expenses of a
given function or segment and its program revenues, and displays the extent to which each function
or segment contributes to the change in net assets for the fiscal year. Direct expenses are those
that are clearly identifiable to a specific function or segment. Indirect expenses are costs the City
has allocated to functions through various allocation methods. Program revenues consist of
charges for services, operating grants and contributions, and capital grants and contributions.
38
September 30, 2011
A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. Government-wide and fund financial statements (continued)
Charges for services refer to amounts received from those who purchase, use, or directly benefit
from goods, services, or privileges provided by a given function or segment. Grants and
contributions consist of revenues that are restricted to meeting the operational or capital
requirements of a particular function or segment. Revenues not classified as program revenues are
reported as general revenues.
Separate fund financial statements report detailed information about the City's governmental,
proprietary and fiduciary funds. The focus of governmental and proprietary fund financial
statements is on major funds. Therefore, major funds are reported as separate columns in the fund
financial statements and non-major funds are aggregated and presented as a single column on
each statement. The results of governmental fund accounting are converted to the governmentwide presentation by reconciliation.
Generally, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this are payments-in-lieu of taxes and other charges between the City’s
utilities and stormwater management systems 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.
3. Measurement focus, basis of accounting, and financial statement presentation
The government-wide financial statements, as well as the proprietary and fiduciary fund financial
statements, are reported using the economic resources measurement focus and the accrual basis
of accounting. Revenues are recognized in the period earned and expenses are recognized when
a liability is incurred. Property tax revenues are recognized in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
All governmental fund financial statements are reported using a current financial resources
measurement focus on a modified accrual basis of accounting. Under this basis, revenues are
recognized in the accounting period in which they become both measurable and available to
finance expenditures of the current period. Available is defined as collectible within the current
period, or soon enough thereafter to be used to pay liabilities of the current period, usually
considered sixty (60) days.
The primary revenue sources for governmental funds are property taxes, public utility taxes,
franchise fees, and sales and fuel taxes. Primary revenue sources associated with the current
fiscal period are considered to be susceptible to accrual and have been recognized as revenues of
the current fiscal period. All other revenues, such as licenses and permits, charges for services,
and miscellaneous revenues, are considered to be measurable and available only when payment is
received.
39
September 30, 2011
3. Measurement focus, basis of accounting, and financial statement presentation (continued)
Expenditures of governmental funds are generally recorded when a liability is incurred, as under
accrual accounting. However, accumulated sick and vacation pay, prepaid insurance and similar
items, and principal and interest on long-term debt are recorded only when payment is due.
Proprietary funds distinguish between operating and non-operating revenues and expenses.
Operating revenues generally result from producing and delivering goods or providing services,
such as water, sewer and garbage services, to the public. Operating expenses for these operations
include the costs of sales and services, administrative expenses, and depreciation. All revenues
and expenses not meeting the definition of operating are reported as non-operating revenues and
expenses.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and the proprietary fund financial statements to
the extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board (GASB). Governments also have the option of following subsequent
private-sector guidance for their business-type activities and enterprise funds, subject to this same
limitation. The City has elected not to follow subsequent private-sector guidance.
Major funds are those whose assets, revenues, expenditures and liabilities are at least ten (10%)
percent of corresponding totals for all governmental or enterprise funds and at least five (5%)
percent of the aggregate amount for all governmental and enterprise funds for the same item.
The following are major governmental funds:
General Fund - The General Fund is the City’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be accounted for in
other funds.
The following are major enterprise funds:
Utilities System Fund - The Utilities System Fund accounts for the provision of sewer and
water reuse services to City residents and some county areas.
Golf Course Fund - The Golf Course Fund accounts for the activities of the municipal golf
course.
Stormwater Management Fund - The Stormwater Management Fund accounts for the
provision of stormwater drainage services to the residents of the City.
40
September 30, 2011
3. Measurement focus, basis of accounting, and financial statement presentation (continued)
Fiduciary Funds report assets held in a trustee or agency capacity for others and therefore cannot
be used to support the government’s own programs.
The following are trust or agency funds:
Trust Funds - The three (3) pension trust funds account for the accumulation of resources to be
used for pension payments to retiring general employees, police officers, and firefighters of the
City. The OPEB trust fund accounts for the accumulation of resources that are used for
payments of retirement benefits other than pensions.
Agency Fund - The agency fund accounted for the collection and payment of utility deposits. It
has been closed. See Note P for details.
4. Cash and cash equivalents
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits,
and highly liquid short-term investments with original maturities of three months or less from the
date of acquisition. The City maintains centralized checking accounts for all funds (except
fiduciary funds).
Cash equivalents, including those classified as restricted assets include pooled investments
with the Florida State Board of Administration’s (SBA) Local Government Surplus Trust Fund,
which, at September 30, 2011, were earning interest at approximately 0.30%. The SBA is
under the regulatory oversight of the State of Florida and has adopted and met the criteria for a
“2a-7 like” pool as defined in GASB Statement No. 31, “Accounting and Financial Reporting for
Certain Investments and for External Investment Pools.” This pool consists primarily of U.S.
government and government guaranteed instruments, U.S. Agency obligations, U.S. Corporate
obligations, certificates of deposit, certain repurchase agreements, bankers’ acceptances,
commercial paper, asset backed securities and variable rate securities. The pool’s investments
are reported at amortized cost, which approximates fair value.
5. Investments
The City’s investment activities are governed by Chapter 218.415 Florida Statutes. In
accordance with this statute, the City may invest any surplus funds in (a) The Local Government
Surplus Funds Trust Fund (State Board of Administration); (b) Securities and Exchange
Commission registered money market funds with the highest credit quality rating from a
nationally recognized rating agency; (c) interest-bearing time deposits or savings accounts in
qualified public depositories; (d) direct obligations of the U.S. Treasury and (e) federal agencies
and instrumentalities. Securities listed in (c) and (d) must be invested to provide sufficient
liquidity to pay obligations as they come due. The City has adopted a formal investment policy
in compliance with Florida Statutes.
Investments are stated at fair value. Changes in the fair value during the year are included in
investment income or loss.
41
September 30, 2011
6. Receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as either “due to/from other funds” (the current portion of
interfund loans) or “advances to/from other funds” (the non-current portion of interfund loans). 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, as reported in the fund financial statements, are offset by a
nonspendable fund balance account in the applicable governmental funds to indicate that they are
not available for appropriation and are not expendable available resources.
Trade receivables consist of account balances less than thirty (30) days overdue. Account
balances exceeding thirty (30) days overdue are written off and sent to a collection agency.
Therefore, all trade receivables reported are deemed collectible.
7. Inventory
Inventory is stated at cost, which approximates fair value, using the first-in, first-out (FIFO) inventory
costing method. Inventory in governmental funds is recorded as an expenditure when purchased.
8. Prepayments and deposits
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. These amounts are offset
by a nonspendable fund balance account, which indicates that they do not constitute available
resources.
9. Restricted assets
Certain assets of the City’s enterprise funds are classified as restricted assets on the statement of
net assets because their use is limited by applicable legal restrictions. The restrictions are for the
following:
SRF Loan Repayment Reserve (Clean Water State Revolving Loan) (see Note J for
additional information)
Confiscated Property (see Note J for additional information)
42
September 30, 2011
10. Property and equipment
Capital assets, which include land, buildings, infrastructure, improvements, and equipment, are
reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost
of more than one thousand ($1,000) dollars and an estimated useful life exceeding one year. The
cost of improvements and replacements, which extend the useful lives of assets or increase their
capacity, are capitalized. Repairs and maintenance costs, which do not improve or extend the
useful life of the respective assets, are charged to expense.
Property and equipment purchased by the City is stated at cost or, if contributed, estimated fair
market value at the date of contribution.
Capital assets use straight-line depreciation over the following estimated service lives:
Classification
Infrastructure
Buildings and building improvements
Improvements other than buildings
Machinery, furniture and equipment
Service Life Ranges
30 - 50 years
40 years
10 - 15 years
3 - 5 years
Major outlays for capital assets and improvements are capitalized as projects are commissioned.
For individual proprietary funds, interest incurred during the construction phase of capital assets is
included as part of the capitalized value of the assets constructed. The amount of interest to be
capitalized is calculated using the weighted average of construction expenditures multiplied by the
interest rate on the debt.
11. Compensated absences
The City permits employees to accumulate earned but unused “paid-time-off” (PTO) rather than sick
and vacation leave, as was formerly used. Employees with previously accrued balances of sick or
vacation time have been compensated. All previously accrued sick leave and vacation time was
eliminated in FY 2009. Upon termination PTO is paid in full but limited to four hundred eighty (480)
hours. PTO is accrued when incurred in the government-wide and proprietary fund financial
statements. In governmental funds, a liability for these amounts is reported only if the PTO has
matured, for example, as a result of employee resignations and retirements. See Note I for
additional information.
43
September 30, 2011
12. Long-term liabilities
Long-term debt and other long-term obligations are reported as liabilities in the government-wide
financial statements for both governmental and business type activities and in the individual
proprietary fund statements. Bond premiums and discounts, as well as issuance costs, are
deferred and systematically amortized over the term of the bonds. Bonds payable are reported net
of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges
and amortized over the term of the related debt.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported
as an “other financing” source. Premiums received on debt issuances are reported as other
financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs are reported as debt service expenditures. Losses incurred on refunding debt in
Proprietary Funds is deferred and amortized over the shorter of the life of the new issue or the
remaining life of the refunded issue. Only material amounts of accrued interest are recorded in the
financial statements.
13. Fund Equity
In the fund financial statements, fund balance classifications are:
Non-Spendable Fund Balance
Represents components not in spendable form and legally or contractually required to be
maintained intact. Examples are inventories, prepaid expenditures, long term portion of notes
receivable, property acquired for resale and unrealized gains.
Restricted Fund Balance
Represents spending constraints externally imposed by law through constitutional provisions or
enabling legislation or by agreements with creditors, grantors, or other governments
Committed Fund Balance
Represents amounts that have internally imposed restrictions mandated by the government’s
highest level of decision-making authority (i.e. City Commission).
Assigned Fund Balance
Amounts constrained by the government’s intent that they will be used for specific purposes, but
are neither restricted nor committed.
Represents amounts that have not been assigned to other funds and that have not been
restricted, committed, or assigned to specific purpose within the general fund
44
September 30, 2011
14. Revenues, contributions, expenditures, and expenses
The City’s accounting treatment and recognition policies for certain revenues, expenditures, and
expenses having unique accounting requirements are as follows:
Property taxes
Property taxes are billed November 1st (discounts are available for early payment) for the
calendar year beginning January 1st. Taxes are due March 1st and become delinquent on April
1st and tax certificates on all property on which taxes are delinquent are sold at the end of May
of each year. Property taxes are considered fully collected (i.e. 96% of the levy) during and
prior to the end of the fiscal year. Therefore, no material amounts of property taxes are
receivable.
Administrative Service Charges
Administrative services are provided to certain enterprise fund and special revenue fund
activities by various departments within the general fund. These charges are recorded as
revenues in the general fund and as operating expenses in the fund being charged.
Grants
Operating and capital grants for both governmental and proprietary funds are recorded as
receivables and revenues at the time that eligible (reimbursable) project costs are incurred.
Grant revenues received in advance of meeting all eligibility criteria are deferred.
B - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
1. Explanation of certain differences between the governmental funds balance sheet and the
government-wide statement of net assets
The governmental funds balance sheet includes reconciliation between fund balance-total
governmental funds and net assets-governmental activities as reported in the government-wide
statement of net assets.
An element of that reconciliation explains that “long-term liabilities, including OPEB obligation
payable, are not due and payable in the current period and, therefore, are not reported in the
funds.” The details of this difference are as follows:
Capital Improvement Revenue Note, Series 2003
OPEB Liability
Accrued compensated absences
Net adjustment to reduce fund balance - total governmental funds to arrive at net
assets - governmental activities
45
$ 360,000
876,439
1,304,066
$ 2,540,505
September 30, 2011
(continued)
2. Explanation of certain differences between the governmental funds statement of revenues,
expenditures, and changes in fund balances and government-wide statement of activities
The governmental fund statement of revenues, expenditures, and changes in fund balances
includes reconciliation between net changes in fund balances - total governmental funds and
changes in net assets of governmental activities as reported in the government-wide statement of
activities. One element of that reconciliation explains that “governmental funds report capital
outlays as expenditures. However, in the statement of activities, the cost of those assets is
allocated over their estimated useful lives and reported as depreciation expense.” The details of
this difference are as follows:
Capital outlays and transfers (net - see Note G, paragraph 3)
Depreciation expense
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net assets - governmental
activities
$
2,220,549
(1,463,038)
$
757,511
The net adjustment increases net changes in fund balances-total governmental funds
to arrive at changes in net assets-governmental activities
Another element of that reconciliation explains that “the issuance of long-term debt (e.g., bonds)
provides current financial resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net assets. Also, governmental funds report the effect of
issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these
amounts are deferred and amortized in the statement of activities.”
The detail of this difference is as follows:
Principal payments on long-term debt:
Capital Improvement Revenue Note, Series 2003
Net adjustment to increase net changes in fund balances - total governmental funds
to arrive at changes in net assets - governmental activities
$
170,000
$
170,000
The net adjustment increases net changes in fund balances-total governmental funds
46
September 30, 2011
(continued)
2. Explanation of certain differences between the governmental funds statement of revenues,
expenditures, and changes in fund balances and government-wide statement of activities
(continued)
Another element of that reconciliation states, “some expenses reported in the statement of activities
did not require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.”
The details of this difference are as follows:
Change in accrued compensated absences
Change in OPEB Obligation
Net adjustment to decrease net changes in fund balances - total governmental funds to
arrive at changes in net assets - governmental activities
$
(42,071)
318,140
$
276,069
The net adjustment decreases net changes in fund balances-total governmental funds
C - BUDGETS
Budget policy
Annual budgets are prepared for all funds except the following:
The Confiscated Property Special Revenue Fund is not budgeted because its sole purpose is to
account for property confiscated by law enforcement in accordance with State and Federal Law.
The use of these funds is governed by Chapter 932, Florida statutes. Accordingly, these funds
are held in a separate interest bearing account.
The pension and OPEB trust funds are not budgeted because the funds held in these accounts
are in trust for others; however, the City contributions to those funds are budgeted within the
respective departments. See Notes L and M for additional information.
Annual operating budgets are prepared on a basis consistent with accounting principles generally
accepted in the United States of America. Annual budget appropriations lapse at the end of each
fiscal year. Open purchase orders and other commitments are recognized as expenditures in the
period in which the actual goods or services are received and a liability is incurred. Encumbrances
outstanding at year-end for unfulfilled obligations are canceled and appropriated in the succeeding
year’s budget. Such amounts, if material, are disclosed in the notes to financial statements under
“Commitments.”
47
September 30, 2011
C - BUDGETS (continued)
Budget policy (continued)
The City Commission pursuant to Article V of the City Charter and state statutes, using the following
procedures, adopts annual operating budgets:
Each department, office or agency of the City submits a work program and budget request
to the Finance Director during March of each year.
The City Manager reviews the departmental requests, conducts workshop sessions and
presents the proposed budget to the City Commission in July of each year.
The City Commission holds a series of budget workshops and public hearings on the
proposed budget and adopts the official annual budget of the City by resolution.
The budgets, as adopted, may be amended through formal approval by the City Commission.
Budgetary integration is established in the accounting records for control purposes at the object of
expenditure level; however, the City Charter establishes the level at which expenditures may not
legally exceed budgeted amounts at the department level. The City’s general governmental
appropriations are budgeted within the general fund as if it were a separate department. Items
making up this legal level of budgetary control include current other general government
expenditures, debt service expenditures and other financing uses. Resolution 2010 - 20 adopted
September 16, 2010 contains budgets for the General Fund and Metered Parking Fund
(governmental funds) as well as the Utilities System Fund, Golf Course Fund, and the Stormwater
Management Fund (enterprise funds). The City Manager may transfer budgeted amounts within a
department, office, or agency of the City without formal approval by the City Commission. The final
budget amounts shown in the financial statements include all amendments as approved during the
year by the City Commission.
D - CASH AND INVESTMENTS
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and
certificates of deposit. The City maintains a centralized interest bearing checking account for all
operating funds. At September 30, 2011, cash and cash equivalents consisted of the following:
1. Cash and cash equivalents
Petty cash funds
State Board of Administration (see Note P paragraph 2 for complete details)
Bank balance (all accounts)
Total cash and cash equivalents
Less: cash and equivalents classified as restricted assets
Restricted Assets (see Note J for complete details)
State Board of Administration Fund B (see Note P paragraph 2 for complete details)
Available cash balance
48
$
$
6,909
146,484
7,060,080
7,213,473
(311,061)
(22,774)
6,879,638
September 30, 2011
D - CASH AND INVESTMENTS (continued)
While the total carrying amount of our cash deposits is $ 7,213,473, the available cash balance is
$ 6,880,638. The City has complied with the requirements of the Florida Security for Public
Deposits Act (the Act) by maintaining its accounts at a qualified public depository as provided by
Chapter 280 of the Florida Statutes. Under the Act, qualified public depositories must deposit with
the State Treasurer eligible collateral in such amounts as required by the Act. Therefore, all cash
deposits and certificates of deposit held by banks are classified as fully insured.
2. City investment policy and portfolio
Resolution 2003 – 07 adopted February 20, 2003, established the City's investment policy. It allows
the City to invest surplus money as provided by Florida Statute 218.415. The investment must be
one of the following authorized types:
The Local Government Surplus Funds Trust Fund or any intergovernmental
investment pool authorized pursuant to the Florida Interlocal Cooperation Act as
provided in s. 163.01, Florida Statutes.
Securities and Exchange Commission registered money market funds with the highest
credit quality ratings (AAA/AA) from a nationally recognized rating agency.
Interest-bearing time deposits or savings accounts in qualified public depositories as
defined in s. 280.02, Florida Statutes.
Direct Obligations of the United States Treasury.
Federal agencies and instrumentalities.
Derivative products and margin purchases are expressly prohibited.
The City’s investments at September 30, 2011, consisted of the following:
Maturity Dates
Less than
One Year
Direct Obligations of the
U.S. Treasury (at market value)
Federal Agencies & Instrumentalities
$
1-5
Years
522,703
$ 1,147,633
735,949
3,535,602
Over
Five Years
Fair Value*
$
$ 1,670,336
-
Total investments
4,271,551
$ 5,941,887
*Includes temporarily restricted assets and accrued interest
The investment policy addresses and mitigates the risk types below as shown:
(1) Interest Rate Risk – The policy requires the portfolio be structured with securities that maintain the
greatest degree of liquidity and flexibility. The portfolio will maintain a structure with maturities staged
to meet the City’s obligations as they come due.
(2) Credit Risk – The City primarily invests in direct obligations of the U.S. Treasury, Federal
agencies, and the State of Florida local government surplus trust fund pool.
49
September 30, 2011
(3) Custodial Risk – All cash and securities are held in accounts bearing the name of the City.
Securities in such accounts, held in the “street name,” are considered held in the name of the City.
(4) Concentration of Credit Risk – No more than fifty (50%) percent of the City’s funds will be
invested with the same issuer, except direct obligations of the United States Treasury. No more than
fifty (50%) percent of the City’s funds will be invested through the same investment institution or
dealer. No more than twenty (20%) percent of the City’s funds will be invested beyond five (5) years
in any security with the same maturity date.
3. Pension fund investment policies
A specific City ordinance created each pension fund. The Board of Trustees for each respective
fund determines investment policies for each of the three (3) pension trust funds.
For each fund, no more than five (5%) percent of fund assets may be invested in the securities (of
whatever type) of any one issuing (this excludes the U. S. Government and its agencies) company.
No investment may exceed five (5%) percent of the outstanding capital stock of any one company.
The aggregate investments in common and capital stock and convertible securities (at cost) may not
exceed sixty-five (65%) percent of the assets of the Police and Fire funds, or sixty (60%) percent of
the assets of the General Employees fund.
Each fund maintains a list of prohibited investment security types. The following investment types
are prohibited:
Futures
Hedge funds
Limited partnerships
Options
Margin accounts
Securities lending
General obligations issued by a foreign government
Bonds issued by a state or municipality
Private equities
Private mortgages
Insurance annuities
Internally managed assets
The investment policies address and mitigate the risk types below as shown:
(1) Interest Rate Risk – The funds’ investment policy requires that the portfolio be structured with
sufficient liquidity to meet the funds’ obligations as they come due.
(2) Credit Risk – The three (3) pension trust funds each hold cash in their respective fund accounts.
To mitigate credit risk, the time, savings and money market deposits of each fund in an institution may
not exceed the Federal Deposit Insurance Corporation (FDIC) insurance coverage held by that
institution for those amounts.
(3) Custodial Risk – All cash and securities are held in accounts bearing the name of the respective
fund. Securities in such accounts, even though held in the “street name” are considered held in the
name of the fund. Fund managers are required to carry errors and omissions insurance coverage.
50
September 30, 2011
(4) Concentration of Credit Risk – Each of the investment policies require that investments be
diversified by security type. Each fund allocates the fund assets to a diversified portfolio of equities,
fixed income & cash equivalent securities directed by a professional investment manager. Each fund
has an independent investment consultant to evaluate and report on the performance of the
investment managers.
4. Pension fund portfolio structure
Fair Value
General Employees’ Pension Trust Fund
Investments not subject to categorization:
Mutual Funds
Common stocks
Money market funds
Total Investments
$ 10,471,219
3,874,226
410,544
$ 14,755,989
Police Officers’ Retirement Trust Fund
Mutual Funds
Common stocks
Money market funds
Total Investments
$ 5,572,693
821,668
163,547
$ 6,557,908
Firefighters’ Retirement Trust Fund
Mutual Funds
Common stocks
Money market funds
Total Investments
$ 5,264,507
1,176,326
286,270
$ 6,727,103
Additional information about the City’s pension funds is shown in Note L and in the Required
Supplementary Information (RSI) section. Maturities are considered less than one year for the
above scheduled investments.
E – UNEARNED REVENUE
Governmental funds report unearned revenue in connection with receivables for revenues that are
not considered available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At
September 30, 2011, the various components of unavailable revenue and unearned revenue
reported in the governmental funds were as follows:
Business license fees received in FY 2011 for FY 2012
51
Unavailable
$
-
Unearned
$ 115,973
September 30, 2011
F - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
1. Long-term advances to/from other fund
There are five (5) long-term advances outstanding as of September 30, 2011.
a. In 1992, the Utilities System Enterprise Fund made a long-term advance to the Golf Course
Enterprise Fund in the amount of $594,188 for facility upgrades. This advance is being
repaid over a nineteen (19) year period in annual installments plus interest at 3.90% and will
mature in FY 2012.
b. In 2007, the General Fund made a long-term advance to the Golf Course Enterprise Fund in
the amount of $682,126 for the defeasance of the Public Improvement Bonds Series 2002.
This advance is being repaid over a fifteen (15) year period in annual installments including
interest at 4.54% and will mature in FY 2022.
c. In 2007, the Utilities System Enterprise Fund made a long-term advance to the Stormwater
Enterprise Fund in the amount of $1,280,000 to fund the Ocean Beach Blvd. project
construction phase. This advance is being repaid over a fifteen (15) year period in annual
installments including interest at 5.00% and will mature in FY 2022.
d. In 2009, the problem of salt infiltration of the greens forced a closing of the Golf Course,
which drastically reduced operating revenues. The closure necessitated the advance of
replacement funds by the General Fund to the Golf Course Fund during the year. The loan
with a principal amount of $2,053,374 is being repaid over a forty (40) year period in annual
installments including interest at 2.00% and will mature in FY 2050.
e. In 2011 the General Fund made an additional loan to the Golf Course Fund during the year.
This loan has enabled the Golf Course to continue operations. The repayment schedule of
this loan with a principal amount of $ 504,826 begins in October 2012 (FY 2013).
Advance
(a)
(b)
(c)
(d)
(e)
Outstanding
Balance at
9/30/11
$
38,757
522,766
994,252
2,032,104
504,826
$
4,092,705
52
Principal Due
in FY 2012
$
38,757
39,953
75,463
27,182
$
181,355
September 30, 2011
F - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (continued)
2. Interfund transfers
Amounts are transferred from one fund to support expenditures of another fund in accordance with
legally established budgets. Transfers between funds during the year ended September 30, 2011
were as follows:
Transfer out:
General Fund
Metered Parking Special Revenue Fund
Utilities System Enterprise Fund
Transfer in:
General
Golf Course
Fund
Enterprise Fund
$
$
8,946
335,798
500,000
9,000
Total transfers
$
835,798
$
17,946
The General Fund transfer to the Golf Course Enterprise Fund of eight thousand nine hundred
forty-six ($ 8,946) dollars offsets the advance (see note 1a above) from the Utility Enterprise Fund
for a pro-rata share of the Golf Course improvements, which benefited the General Fund.
The Metered Parking Fund transfer to the General Fund has three (3) components. A component
of one hundred eighty five thousand seven hundred ninety-eight ($ 185,798) dollars offsets a
portion of the revenue note used to purchase the Maritime Hammock Preserve property; and a one
hundred thousand ($ 100,000) dollar component provides a contribution for public safety and beach
vehicles; a fifty thousand ($ 50,000) dollar component offsets the cost of a maintenance worker
used to maintain beaches and landscaping.
The Utility System Enterprise Fund transfer of five hundred thousand ($ 500,000) dollars to the
General Fund has two (2) components. Four hundred fifty thousand ($ 450,000) is a payment in
lieu of property taxes equivalent to the value of services received from the government as a
property owner in its own right. Fifty thousand ($ 50,000) is to offset the cost of a General Fund
maintenance worker used on projects which benefit the utility. The Utility Fund transfer to the Golf
Course Enterprise Fund of nine thousand ($ 9,000) dollars is a payment for use of retention ponds.
The amounts shown above specifically exclude the amounts the General Fund charges the
enterprise funds each year for administrative (e.g. payroll, accounts payable disbursements, etc.)
support and services. These amounts are identified in the proprietary fund financial statements.
53
September 30, 2011
G - CAPITAL ASSETS
1. Governmental capital asset activity for the year ended September 30, 2011, was as follows:
Governmental activities:
Capital assets,
not being depreciated:
Land
Construction in progress
Total capital assets,
not being depreciated
Capital assets,
being depreciated:
Buildings
Infrastructure
Improvements other
than buildings
Machinery and equipment
being depreciated
Less accumulated depreciation for:
Buildings
Infrastructure
Improvements other
than buildings
Beginning
Balance
Increases
$ 6,697,356
$
Decreases
-
$
-
Ending
Balance
$ 6,697,356
1,507,575
1,076,334
(702,911)
1,880,998
8,204,931
1,076,334
(702,911)
8,578,354
5,162,251
857,693
165,231
18,137
(2,435)
-
5,325,047
875,830
13,289,045
10,116,366
1,006,280
657,478
(3,336)
(140,286)
14,291,989
10,633,558
29,425,355
1,847,126
(146,057)
31,126,424
(1,656,818)
(111,915)
(118,128)
(17,180)
2,435
-
(1,772,511)
(129,095)
(9,754,608)
(351,574)
3,336
(10,102,846)
(7,796,035)
(976,156)
140,286
(8,631,905)
Total accumulated
depreciation
(19,319,376)
(1,463,038)
146,057
(20,636,357)
being depreciated, net
Governmental activities
capital assets, net
10,105,979
384,088
$ 18,310,910
$ 1,460,422
54
$ (702,911)
10,490,067
$ 19,068,421
September 30, 2011
G - CAPITAL ASSETS (continued)
2. Business type capital asset activity for the year ended September 30, 2011, was as follows:
Business-type activities:
Capital assets,
not being depreciated:
Land
Construction in progress
not being depreciated
Capital assets,
being depreciated:
Buildings
Infrastructure
Improvements other
than buildings
being depreciated
Less accumulated depreciation for:
Buildings
Infrastructure
Improvements other
than buildings
Total accumulated
depreciation
being depreciated, net
Business-type activities
capital assets, net
Beginning
Balance
Increases
$ 2,944,894
2,507,711
$
717,381
Decreases
$
Ending
Balance
(1,221,379)
$ 2,944,894
2,003,713
(1,221,379)
4,948,607
5,452,605
717,381
6,114,545
36,111,142
223,812
997,567
4,094,092
4,548,245
121,698
116,101
(98,101)
4,215,790
4,566,245
50,868,024
1,459,178
(98,101)
52,229,101
-
6,338,357
37,108,709
(2,181,440)
(12,849,977)
(143,547)
(712,566)
-
(2,324,987)
(13,562,543)
(2,405,858)
(3,837,455)
(135,841)
(322,461)
98,101
(2,541,699)
(4,061,815)
(21,274,730)
(1,314,415)
98,101
(22,491,044)
29,593,294
$ 35,045,899
55
144,763
$
862,144
$ (1,221,379)
29,738,057
$ 34,686,664
September 30, 2011
3. Depreciation expense charged to functions/programs of the City is as follows:
General government
Public safety
Transportation/public works
Recreation
Total depreciation expense -governmental activities
Utility
Golf course
Stormwater
Total depreciation expense - business-type activities
Assets being depreciated
Construction in progress - increase
Construction in progress - decrease
Capital outlays and transfers (net)
$
288,738
467,740
604,336
102,224
$
1,463,038
$
1,004,797
273,753
35,865
$
1,314,415
$
1,847,126
1,076,334
(702,911)
$
2,220,549
4. Construction (estimated) commitments are as follows:
The scope of work for most projects is preliminary. The commitments shown are order of
magnitude (i.e. plus/minus thirty (+30%) percent) estimates for most projects. Replacements of
existing equipment units are omitted.
Project Description
Ocean Beach Blvd.
Wastewater Facility Upgrades
Public Safety/Admin. Facilities
Other projects (22)
Total
Remaining Commitment
Beyond
FY 2012
FY 2012
Spent-to-date
$
1,848,458
788,934
1,092,676
1,215,455
$
$
4,945,523
$ 11,924,355
56
1,000
10,785,000
1,138,355
$
8,260,000
20,000,000
1,500,000
$ 29,760,000
September 30, 2011
5. Invested in capital assets, net of related debt:
Enterprise Funds
Govenmental
Utility
Golf
Stormwater
Funds
Fund
Fund
Fund
$ 39,704,778 $ 46,887,464 $ 7,017,911 $ 3,272,333
(20,636,357)
(18,212,645)
(3,874,521)
(403,878)
(360,000)
(3,520,852)
$ 18,708,421 $ 25,153,967 $ 3,143,390 $ 2,868,455
Capital Assets
Less: Accumulated Depreciation
Less: Outstanding Principal of Capital-related Debt
Net Assets invested in Capital Assets,Net of Related Debt
H - LONG-TERM DEBT
1. Revenue bonds and other debt instruments
Outstanding
Principal
$ 1,540,000 Capital Improvement Revenue Note, Series 2003 issued by
a local bank, payable in annual installments of $130,000 to $185,000
beginning November 2003 through January 2013; interest at 3.55%;
issued to finance the purchase of a 5.4 acres parcel of undeveloped
land in the City; secured by and payable from pledged funds including
the proceeds from this note and moneys budgeted pursuant to the
loan agreement. The ad valorum taxing power of the City will never
be necessary or authorized to pay the amounts due.
$ 5,193,174 Clean Water State Revolving Loan, payable in semi-annual
installments of $177,690 beginning January 15, 2004 through July 15, 2023;
interest from 1.45% to 1.635% plus service charges. Issued to finance
sewer treatment and rehabilitation projects; secured by and payable
from the net revenues derived from the operation of the City's sewer system.
Total
57
$
360,000
3,520,852
$ 3,880,852
September 30, 2011
H - LONG-TERM DEBT (continued)
2. Changes in long-term liabilities
Long-term liability activity for the year ended September 30, 2011 (excluding long-term advances
between funds) was as follows:
Beginning
Balance
Ending
Balance
Due Within
One Year
Additions
Reductions
$
318,140
498,187
$ (170,000)
(540,258)
$
360,000
876,439
1,304,066
$ 175,000
523,373
$ 2,434,436
$ 816,327
$ (710,258)
$ 2,540,505
$ 698,373
Note payable:
State Revolving Loan
OPEB Liability
Compensated absences
$ 3,761,330
178,656
401,757
$
100,433
147,089
$ (240,478)
(151,273)
$ 3,520,852
279,089
397,573
$ 247,749
148,878
Business-type activity
long-term liabilities
$ 4,341,743
$ 247,522
$ (391,751)
$ 4,197,514
$ 396,627
Note payable:
Capital Improvement
Revenue Note, Series 2003
OPEB Liability
Compensated absences
Governmental activity
long-term liabilities
$
530,000
558,299
1,346,137
58
September 30, 2011
3. Bond & note debt service requirements to maturity for governmental activities
Governmental Activities
Capital Improvement
Revenue Note, Series 2003
Year Ending
September 30,
2012
Principal
$
Interest
175,000
$
9,674
2013
185,000
3,284
2014
-
-
2015
-
-
2016
-
-
2017
-
-
2018
-
-
2019
-
-
2020
-
-
2021
-
-
2022
-
-
2023
-
-
Total
$
59
360,000
$
12,958
September 30, 2011
4. Bond & note debt service requirements to maturity for business-type activities
Business-type Activities
Clean Water
State Revolving Fund Loan
Year Ending
September 30,
2012
Principal
$
247,749
Interest
$
103,843
2013
255,239
96,353
2014
262,957
88,635
2015
270,908
80,684
2016
279,100
72,492
2017
287,540
64,052
2018
296,236
55,356
2019
305,195
46,397
2020
314,426
37,166
2021
323,936
27,656
2022
333,736
17,856
2023
343,830
7,762
Total
$ 3,520,852
60
$
698,252
September 30, 2011
5. Comprehensive summary of debt service requirements to maturity
Summary
Year Ending
September 30,
2012
Principal
$
Interest
422,749
$
113,517
2013
440,239
99,637
2014
262,957
88,635
2015
270,908
80,684
2016
279,100
72,492
2017
287,540
64,052
2018
296,236
55,356
2019
305,195
46,397
2020
314,426
37,166
2021
323,936
27,656
2022
333,736
17,856
2023
343,830
7,762
Total
$ 3,880,852
$
711,210
I – COMPENSATED ABSENCES
An explanation of the compensated absences policy is given in Note A, paragraph 11.
A comprehensive recap of the liability is as follows:
Beginning
Balance
General Fund
Enterprise Funds:
Utilities System
Golf Course
Stormwater Management
Total Enterprise Funds
Additions
Ending
Balance
Reductions
Due Within
One Year
$
1,346,137
$ 498,187
$
(540,258)
$ 1,304,066
$
523,373
$
232,526
128,404
40,827
$ 101,227
26,581
19,281
$
(101,445)
(26,490)
(23,338)
$
232,308
128,495
36,770
$
101,350
26,509
21,019
$
401,757
$ 147,089
$
(151,273)
$
397,573
$
148,878
61
September 30, 2011
J - RESTRICTED NET ASSETS
The restricted net asset account balances in the government-wide business-type activities are:
SRF Loan Repayment Reserve
$
105,626
The restricted net asset account balances in the government-wide governmental activities are:
Conficated Property Fund
$ 205,435
The Confiscated Property Fund is maintained in a separate interest bearing bank account.
For cash purposes (see Note D – Cash & Investments) both of the above items are considered
restricted.
K - RISK MANAGEMENT
1. Property and liability insurance programs
The City is exposed to various risks of loss related to torts; injuries to employees, theft of, damage
to and/or destruction of assets, errors and omissions, general liabilities and natural disasters. In
order to limit its exposure to these risks, the City participates in the Florida League of Cities (FLOC)
(a not-for-profit corporation) insurance program for workers’ compensation, general and auto
liability, and property insurance. The FLOC purchases both excess and specific coverages from
third party insurance carriers. Program participants purchase excess and specific coverages and
are not assessed for unanticipated losses incurred by the program. The City has insurance
programs with other carriers for floods, liability insurance for public officials and other specialized
coverages.
Premiums paid by the City during FY 2011 totaled six hundred nine eight hundred forty-two
($609,842) dollars. This is a reduction from $ 649,773 paid in FY 2010. There were no significant
reductions in insurance coverages during FY 2011. The cost reduction may be attributed to a
favorable experience rate for workers’ compensation as well as a realignment of liability coverage
that reflected the results and recommendations of a comprehensive appraisal report prepared in FY
2007. Settled claims have not exceeded commercial excess coverages in any of the past five (5)
years.
2. Hurricane & other event costs, damages and reimbursements
All eligible costs for Hurricanes Charley, Frances, Jeanne (2004) and Wilma (2005) have been
reimbursed. Formal closeout documentation for these events is in progress.
Tropical Storm Fay impacted the City in August 2008. A shoreline stabilization and repair project
with a construction value of about two hundred fifty thousand ($250,000) dollars is moving through
the approval process required by the various federal and state agencies. All other eligible costs
have been paid.
There were no events in FY 2009, FY 2010 or FY 2011.
62
September 30, 2011
L - EMPLOYER RETIREMENT PLANS
The City maintains three (3) contributory single-employer defined benefit pension plans (Plans) as
described below. These Plans are:
City of Cocoa Beach General Employees’ Pension Trust Fund (General Employees)
City of Cocoa Beach Police Officers’ Retirement Trust Fund (Police Employees)
City of Cocoa Beach Firefighters’ Retirement Trust Fund (Fire Employees)
1. Summary of significant accounting policies (all Plans)
Basis of Accounting. The Plans’ financial statements are prepared using the accrual basis of
accounting. Plan member contributions are recognized in the period in which the contributions
are due. Employer contributions to each plan are recognized when due and the employer has
made a formal commitment to provide the contributions. Benefits, refunds and administrative
costs are recognized when due and payable in accordance with the terms of each plan. Onbehalf payments, made by the state totaling $ 88,671 and $ 131,040 for the Police Officers’ and
Firefighters’ plans respectively, were recognized as revenues and expenditures in the general
Fund during the year ended September 30, 2011.
Method Used to Value Investments. Investments are reported at fair value. Short-term
investments are reported at cost, which approximates fair value. Securities traded on a national
or international exchange are valued at the last reported sales price at current exchange rates.
Investments that do not have an established market are reported at estimated fair value.
Presentation of Financial Statements The Plans do not issue stand-alone financial reports and
are not included in the reports of any other entity.
Funding Requirements. At the request of the Division of Retirement, the City is required to fund
the reported percentage of payroll for fiscal years beginning October 1, 2009 instead of a
disclosed dollar requirement.
2. Participant data
Participant Category
Actively employed participants
Service Retirees
Beneficiaries
Terminated vested*
Disability Retirees
DROP** Retirees
Totals
Participants as of October 1, 2011
General
Police
Fire
Employees Employees Employees
125
33
24
45
21
15
3
5
15
5
6
3
1
1
N/A
1
191
*Entitled to benefits but not yet receiving them.
**Deferred Retirement Option Plan
63
65
47
September 30, 2011
L - EMPLOYER RETIREMENT PLANS (continued)
3. Description of plan benefits - all plans
Plan provisions are established by City ordinance and may be amended by the City Commission.
Each plan provides retirement, death and disability benefits to participating employees. Retirement
benefits vest with the participants based on years of credited service. Employees qualifying for
normal retirements are entitled to a monthly annuity based on a percentage of average
compensation multiplied by the number of years of credited service. Early retirement benefits are
available using reduced benefit formulas. Disability benefits available to employees with ten (10)
years of plan participation provide monthly income (as defined by the respective plan) payable to
normal retirement, death or recovery. In the event of death, the plan provides for a single sum
death benefit equal to the participant’s contribution account on date of death. Optional forms of
benefits are available and may be elected by the employee as provided in the respective plans.
The information presented in the supplementary schedules below was determined as part of the
actuarial valuation at the dates indicated.
General
Employees
Police
Employees
Fire
Employees
100% vested at:
and
Age 52
Five years service
Age 55
Ten years service
Age 55
Ten years service
Before 11/18/99
After 11/18/99
Before 11/18/98
After 11/18/98
3%
2.50%
N/A
N/A
N/A
N/A
4%
3%
N/A
N/A
4%
3%
Normal Retirement
and
Age 62
Five years service
Age 55
Ten years service
Age 55
Ten years service
Early Retirement
and
Age 52
Five years service
Age 50
Ten years service
Age 45
Ten years service
Actuarial valuation date
Remaining amortization period*
Actuarial cost method
10/1/2011
18 years
Frozen entry age
10/1/2011
24 years
Entry age normal
10/1/2011
24 years
Entry age normal
Level dollar
amount
Level percentage of
pay, closed
Level percentage of
pay, closed
Compensation
Percentages
Amortization method
Asset valuation method (all funds)
Actuarial assumptions:
Investment rate of return
Projected salary increases**
Post Retirement COLA
4-year smooth
8.0%
6.0%
None
* From longest lived benefit and/or assumption change
64
8.0%
6.0%
None
8.0%
6.5%
None
**Includes inflation at 3%
September 30, 2011
4. City of Cocoa Beach General Employees’ Pension Trust Fund
Plan description
The General Employees’ Pension Trust Fund (the Plan) covers full-time regular employees of the
City and is administered by a Board composed of the City’s Finance Director (chairman), a City
Commissioner, two (2) general employees (elected by the general employees) and a resident of the
City (selected by the City Commission). The Board’s administrative authority includes, but is not
limited to, eligibility determination for participation in the plan, early and late retirement, disability,
contribution schedules, withdrawals and such investment determination as may be necessary.
Current eligibility requirements provide that regular full-time general employees (not police officers
or firefighters) may participate in the plan.
Funding policy
The City Commission establishes and may amend the contribution requirements of the Plan
members and the City. Employees are required to contribute five (5%) percent of their gross pay to
fund the Plan and the City is required to contribute funds at an actuarially determined rate, as a
percentage of annual covered payroll. For the fiscal year ended September 30, 2011, the City’s
contribution rate was 16.03%, which amounted to a required contribution of $ 773,188.
Annual pension costs
The annual required contribution for the current year was determined as a part of the October 1,
2010 actuarial valuation using the frozen entry age actuarial cost method with the initial unfunded
actuarial accrued liability determined by the entry age actuarial cost method and amortization of
unfunded past service liability over a twenty- five (25) year period. The actuarial assumptions
included an eight (8%) percent investment rate of return (net of investment-related expenses) and
projected salary increases of six (6%) percent per year (including inflation at three (3%) percent).
The assumptions did not include post-retirement benefit increases.
Three-year Trend Information - General Employees
Fiscal
Year
Ended
9/30/2011
9/30/2010
9/30/2009
Annual
Pension
Cost (APC)
$
773,188
627,451
692,405
Percentage
of APC*
Contributed
100%
100%
100%
Net
Pension
Obligation
$
-
*Annual Pension Cost from City sources
Changes in benefit provisions/actuarial assumptions since the prior valuation
There have been no changes in benefits since the prior valuation. There have been no changes in
methods or assumptions since the prior valuation.
65
September 30, 2011
5. City of Cocoa Beach Police Officers’ Retirement Trust Fund
Plan description
The City’s Police Officers’ Retirement Trust Fund (the Plan) covers full-time police officers
employed by the City’s Police Department. A five (5) member Board of Trustees administers the
Plan. Two (2) Board members are appointed by the City Commission and two (2) are police officer
representatives elected by the employees. The initial four (4) trustees appoint the fifth member.
Funding policy
The City Commission establishes and may amend the contribution requirements of plan members
and the City. Employees are required to contribute five percent (5%) of their gross pay to fund the
Plan and the City is required to contribute funds at an actuarially determined rate, as a percentage
of the annual covered payroll. For fiscal year ended September 30, 2011, the City’s contribution
rate was 41.06%, which amounted to an actual contribution of $792,672, which, when combined
with the change in the Net Pension Obligation (NPO), equaled the required contribution.
The annual required contribution for the current year was determined as part of the October 1, 2010
actuarial valuation using the frozen entry age actuarial cost method with the initial unfunded
actuarial accrued liability determined by the entry age normal actuarial cost method and
amortization of unfunded past service liability over a thirty (30) year period. The actuarial
assumptions included an eight (8%) percent investment rate of return (net of administrative
expenses) and projected salary increases of six (6%) percent per year (including three (3%) percent
inflation). The assumptions do not include post-retirement benefit increases.
Three-year Trend Information - Police Employees
Fiscal
Year
Ended
9/30/2011
9/30/2010
9/30/2009**
Actuarially
Determined
Contribution
$
793,155
668,093
391,848
Percentage
of APC*
Contributed
99.94%
99.93%
101.13%
Net
Pension
Obligation
$ (7,963)
(8,446)
(8,924)
**excludes state on behalf payments
There have been no changes in benefits since the prior valuation. There have been no changes in
methods or assumptions since the prior valuation.
66
September 30, 2011
6. City of Cocoa Beach Firefighters’ Retirement Trust Fund
Plan description
The City’s Firefighters’ Retirement Trust Fund (the Plan) covers full-time firefighters. A five (5)
member Board of Trustees administers the plan. The City Commission appoints two (2) members.
The employees elect two (2) Firefighter representatives. The initial four (4) trustees appoint the fifth
member.
Funding policy
The City Commission establishes and may amend the contribution requirements of plan members
and the City. Employees are required to contribute five percent (5%) of their gross pay to fund the
plan and the City is required to contribute funds at an actuarially determined rate, as a percentage
of annual covered payroll. For fiscal year ended September 30, 2011, the City’s contribution rate
was 40.22%, which amounted to a required contribution of $521,671.
The annual required contribution for the current year was determined as part of the October 1, 2010
actuarial valuation using the frozen entry age actuarial cost method with the initial unfunded
actuarial accrued liability determined by the entry age normal actuarial cost method and
amortization of unfunded past service liability over a thirty (30) year period. The actuarial
assumptions included an eight (8%) percent investment rate of return (net of administrative
expenses) and projected salary increases of six and one-half (6.5%) percent per year (including
three (3%) percent inflation). The assumptions do not include post-retirement benefit increases.
Three-year Trend Information - Fire Employees
Fiscal
Year
Ended
9/30/2011
9/30/2010**
9/30/2009**
Actuarially
Determined
Contribution
$
521,671
407,287
400,489
Percentage
of APC*
Contributed
100%
100%
100%
Net
Pension
Obligation
$
-
**excludes state on behalf payments
There have been no changes in benefits since the prior valuation. To comply with statutory
requirements the payroll growth assumption was decreased from three (3%) percent to the ten (10)
year average of two (2.9%) and nine tenths percent.
67
September 30, 2011
7. Pension plan financial statements
a) Statement of Plan Net Assets
General
Employees'
Pension Trust
Fund
ASSETS
Accrued income
Investments, at fair value:
Cash and money market
Mutual funds
Common stocks
Total investments
Total assets
LIABILITIES
Pre-paid contributions
NET ASSETS
Held in trust for pension benefits
Total net assets
$
-
Police
Officers'
Retirement
Trust Fund
$
9,012
Firefighters'
Retirement
Trust Fund
$
9,531
410,544
10,471,219
3,874,226
14,755,989
163,547
5,572,693
821,668
6,557,908
286,270
5,264,507
1,176,326
6,727,103
14,755,989
6,566,920
6,736,634
25,839
36,695
141,789
14,730,150
6,530,225
6,594,845
6,530,225
$ 6,594,845
$ 14,730,150
68
$
September 30, 2011
7. Pension plan financial statements (continued)
b) Statement of Changes in Plan Net Assets
General
Employees'
Pension Trust
Fund
ADDITIONS
Contributions:
Employer
Plan members
State (on behalf payments)
Citizen
Total contributions
Investment earnings:
Net increase (decrease) in fair
value of investments
Interest and dividends
Total investment earnings
Less investment expenses
Net investment earnings
Total additions
$
773,188
248,135
1,021,323
Police
Officers'
Retirement
Trust Fund
$
704,001
92,537
88,671
124
885,333
Firefighters'
Retirement
Trust Fund
$
436,864
64,277
131,040
632,181
(416,259)
62,275
(353,984)
66,718
(420,702)
600,621
(256,389)
140,500
(115,889)
30,187
(146,076)
739,257
(232,710)
143,698
(89,012)
31,911
(120,923)
511,258
DEDUCTIONS
Benefits
Other expenses
Total deductions
Change in net assets
583,848
11,391
595,239
5,382
1,152,233
20,916
1,173,149
(433,892)
779,859
24,880
804,739
(293,481)
Net assets, beginning of year
14,724,768
Net assets, end of year
$
14,730,150
69
$
6,964,117
6,888,326
6,530,225
$ 6,594,845
September 30, 2011
8. Funded Status and Funding Progress
City of Cocoa Beach General Employees’ Pension Trust Fund
As of September 30, 2011, the actuarial accrued liability (AAL) for benefits was $ 15,623,261
and the actuarial value of assets was $ 16,055,038, resulting in an unfunded actuarial
accrued liability (UAAL) of ($ 431,777). The covered payroll was $4,879,634 and the ratio of
the UAAL to the covered payroll was (8.85%).
City of Cocoa Beach Police Officers’ Retirement Trust Fund
As of September 30, 2011, the actuarial accrued liability (AAL) for benefits was $ 14,287,613
and the actuarial value of assets was $ 7,066,831, resulting in an unfunded actuarial accrued
liability (UAAL) of $ 7,220,782. The covered payroll was $ 1,852,447 and the ratio of the
UAAL to the covered payroll was 389.80%.
City of Cocoa Beach Firefighters Retirement Trust Fund
As of September 30, 2011, the actuarial accrued liability (AAL) for benefits was $12,180,832
and the actuarial value of assets was $ 6,963,778, resulting in an unfunded actuarial accrued
liability (UAAL) of $ 5,217,074. The covered payroll was $ 1,362,467 and the ratio of the
UAAL to the covered payroll was 382.91%.
The schedule of funding progress immediately following the notes to the financial statements
presents multi-year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
70
September 30, 2011
M - OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Effective for the 2009 fiscal year, the City implemented GASB No. 45, Accounting and Financial
Reporting by Employers for Post-Employment Benefits Other Than Pensions, for certain
postemployment benefits provided by the City.
The statement generally requires that state and local governmental employers account for and
report the annual cost of OPEB and the outstanding obligations and commitments related to OPEB
in essentially the same manner as they currently do for pensions.
1. Description of Healthcare Benefits
The post-employment health care benefits are administered by the City pursuant to the
provisions of section 112.0801, Florida Statutes. Former employees and eligible dependents
who retire from the City may continue to participate in the City’s fully insured health and
hospitalization plan for medical coverage.
However, the City subsidizes the premium rates paid by retirees by allowing them to participate
in the plans at reduced or blended group premium rates for both active and retired employees.
These rates provide an implicit subsidy for retirees because, on an actuarial basis, their current
and future claims are expected to result in higher costs to the plan on average than those of
active employees. In addition, the City contributes a portion of the premium cost (explicit
subsidy) with the retirees responsible for the remainder of the payment.
Significant changes were made to the OPEB benefit plan effective January 1, 2009. These
changes reduce benefits for current employees retiring after January 1, 2014 and for new
employees hired after January 1, 2009. The cumulative effect is expected to be a significant
reduction in OPEB liability.
Pre-Medicare retirees who retired prior to January 1, 2009 and participate in the group
insurance plan offered by the City are required to contribute fifty (50%) percent of the active
premium. Once these retirees are Medicare eligible, the City converts the health insurance to a
Medicare supplement policy and pays one hundred (100%) percent of the premium. Retirees
who retire after January 1, 2009, but were hired prior to January 1, 2009, must meet certain age
and service requirements in order to be eligible for any City-paid premiums.
For retirees hired after January 1, 2009, at least twenty-five (25) years of service is required
before the City will contribute 33% of Pre-Medicare premiums. In addition, General employees
must be at least age sixty-two (62) and Police Officers and Firefighters must be at least age
fifty-five (55). Retirees are eligible for coverage in the Medicare supplement policy but pay
100% of the premium. In future years, contributions are assumed to increase at the same rate
as premiums.
Dental and Vision coverage is currently not available to retirees.
As of September 30, 2011, the City provided healthcare benefits for forty-eight (48) eligible
retired employees and beneficiaries.
71
September 30, 2011
M – OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
2. Description of Life Insurance Benefits
Life Insurance in the amount of $ 5,000 may be provided to some current retirees up to age 70,
and then coverage drops to $ 2,500. The retiree contributes 100% of the premium for this
benefit. The City provides a pass-through billing service at no charge to the employee. This
benefit provides an implicit subsidy because the retiree receives the same rate as an active City
employee. However, Life Insurance is not offered to employees retiring after October 1, 2006.
At September 30, 2011, there were twenty-five (25) retirees and eligible dependents remaining
in this program.
3. Summary of Significant Accounting Policies
Basis of Accounting. The financial statements are prepared using the accrual basis of
accounting. Contributions are recognized in the period in which the contributions are due.
Benefits, refunds and administrative costs are recognized when due and payable in accordance
with the terms of the plan.
Method Used to Value Investments. Investments are reported at fair value. The Florida
Municipal Pension Trust Fund (FMPTF) provides monthly statements for this purpose.
Presentation of Financial Statements The OPEB trust does not issue stand-alone financial
reports and is not included in the reports of any other entity.
4. Funding Policy
The Plan was established by Resolution 2008 – 31 in 2008. The Plan may be amended or
terminated as circumstances require by Resolution.
The numbers shown below reflect a decision to partially fund the program. Therefore, the
contributions made to the program are the benefits paid to retirees (both on an explicit and
implicit basis) and administrative expenses.
An initial $100,000 was contributed to the OPEB fund run by the FMPTF administered by the
Florida League of Cities in October 2008. As of September 30, 2011, three (3) annual
payments of $ 100,000 each had been made to the FMPTF. The annual payment for FY 2012
of $ 100,000 was made in December 2011.
The program was amended as of January 1, 2009, as described above (i.e. benefit changes for
employees hired after January 1, 2009) and those new provisions were used to determine the
Net OPEB Obligation for FY 2009 and years following.
Benefits may be changed from time to time by management as noted above. Under the current
policy, if a retiree does not make his or her payments for the benefits as described above the
benefit is forfeited and cannot be reinstated.
72
September 30, 2011
5. Annual OPEB Cost and Net OPEB Obligation
Fiscal Year Ending September 30, 2011
Normal Cost
Interest on Normal Cost
Normal Cost Component
$
Amortization Amount
Amortization Interest
Amortization Component
$
Annual Required Contribution (ARC)
Interest on net OPEB Obligation
Adjustment to Annual Required Contribution
Annual OPEB Cost (Expense)
Estimated Net Contribution Made
Anticipated Increase (Decrease) in Net OPEB Obligation
Net OPEB Obligation - Beginning of Year
Estimated Net OPEB Obligation - End of Year
$
$
$
222,393
13,088
235,481
286,045
17,163
303,208
538,689
44,217
(45,132)
$ 537,774
(119,201)
$ 418,573
736,955
$ 1,155,528
Allocation of the OPEB Obligation
Fund
Personnel
General Fund
Golf Course
Utility System
Stormwater
Total
179
26
27
4
236
Percent
75.85%
11.02%
11.44%
1.69%
100.00%
Amount
$
876,439
127,304
132,200
19,585
$ 1,155,528
6. Funded Status and Funding Progress
As of September 30, 2011, the actuarial accrued liability (AAL) for benefits was $ 4,797,993,
and the actuarial value of assets was $ 217,284 dollars, resulting in an unfunded actuarial
accrued liability (UAAL) of $ 4,580,709. The covered payroll was $ 7,854,652 and the ratio of
the UAAL to the covered payroll was 58.3%. As of October 1, 2010, there were forty-three (43)
retirees and seven (7) eligible dependents receiving postemployment health care benefits.
In FY 2011 the City contribution of $ 462,186 consists of three (3) components: $119,201 for the
current year as noted above, $ 100,000 to partially fund the program, and $ 242,985 of prior
year annual contributions.
The Required Supplementary Information (RSI) immediately following the notes to the financial
statements presents additional multi-year trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
73
September 30, 2011
7. Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment and termination, mortality, and the healthcare cost
trends. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared
with past expectations and new estimates are made about the future. Projections of benefits for
financial reporting purposes are based on the substantive plan provisions, as understood by the
employer and participating members, and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and
participating members. The actuarial methods and assumptions used include techniques that
are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the
actuarial value of assets, consistent with the long-term perspective of the calculations.
The OPEB liability is currently partially funded, with a combination of annual contributions to a
professionally managed fund and City premium payments on a pay-as-you-go basis.
The City’s actuarial valuation as of October 1, 2010, was used to estimate the unfunded
actuarial liability and to determine the annual required contribution for the fiscal year ended
September 30, 2011.
The actuarial assumptions included the following:
Funding Method - Entry age normal actuarial cost method (level Percent of Pay)
Retirement age for active employees - Based on historical average retirement ages
for General, Fire & Police employee categories.
Mortality - RP- 2000 Combined Healthy Mortality Table
Turnover - City’s historical data by age in General, Fire & Police employee
categories.
Healthcare cost trend rate – eight (8 %) percent in 2010; decreasing 1% each year to
the ultimate rate of five (5%) percent in 2013.
Health insurance premiums - Actual 2011 premiums were used to calculate the
values of benefits to be paid.
Payroll growth rate - three (3.0%) percent per year/ (0% for General employees).
Inflation rate - three (3.0%) percent per year.
Interest rate - six (6.0%) percent per year, compounded annually, net of investment
related expenses.
The unfunded actuarial accrued liability is being amortized as a level percentage of (closed
amortization over thirty (30) years) payroll.
74
September 30, 2011
N – GOVERNMENTAL FUNDS - FUND BALANCE
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions
establishes accounting and financial reporting standards for governmental funds. It establishes
criteria for classifying fund balances into specifically defined classification and clarifies
definitions for governmental fund types. Fund balances for governmental funds are reported in
classifications that comprise a hierarchy based primarily on the extent to which the government
is bound to honor constraints on the specific purposes for which amounts in those funds can be
spent.
When both restricted and unrestricted amounts are available for use, it is the City’s practice to
use restricted resources first. Additionally, the City would first use committed, then assigned,
and lastly unassigned amounts of unrestricted fund balance. The City reported the following
governmental fund balances:
o
Nonspendable Fund Balance – These amounts cannot be spent because they are not in
spendable form.
o
Restricted Fund Balance - These amounts are restricted to specific purposes when
constraints placed on the use of resources are either by:

(a) externally imposed by creditors (such as debt covenants), grantors,
contributors, or laws or regulations of other governments;
Or

(b) imposed by law through constitutional provisions or enabling legislations.
o
Committed Fund Balance – These amounts can only be used for specific purposes
pursuant to constraints imposed by the City Commission. The constraints cannot be
removed unless the Commission remove it in the same manner it was implemented.
o
Assigned Fund Balance – These amounts are constrained by the government’s intent
they be used for specific purposes. Decisions with regard to these amounts may be
made by a committee or other government official (i.e. City Manager etc.)
o
Unassigned Fund Balance – includes residual positive fund balance within the General
Fund which has not been classified within the other above mentioned categories.
Unassigned fund balance may also include negative balances for any governmental fund
if expenditures exceed amounts restricted, committed, or assigned for those specific
purposes.
75
September 30, 2011
N – GOVERNMENTAL FUNDS - FUND BALANCE (continued)
FUND BALANCE - GOVERNMENTAL FUNDS
CONFISCATED METERED
GENERAL
PROPERTY
PARKING
TOTALS
Fund balances:
Non-spendable:
Advances
Prepaid expenses
Restricted:
Public safety
Committed:
Capital projects
Other
Assigned:
None
Unassigned:
General government
Total Fund Balance
$ 2,992,561
124,666
$ 2,992,561
124,666
$
205,435
1,083,606
205,435
$
135,880
896,121
1,219,486
896,121
-
5,691,311
$ 9,892,144
$
205,435
$ 1,032,001
5,691,311
$ 11,129,580
Non-Spendable Fund Balance
Advances are the non-current portion of the interfund receivables. See Note F for details. Prepaid
expenses are costs applicable to future accounting periods (e.g. insurance premiums) and do not
constitute available resources.
Restricted Fund Balance
Public Safety - The Confiscated Property Fund monies are governed by Chapter 932, Florida Statutes.
Committed Fund Balance
Resolution 2011 – 32 passed November 17, 2011 amended the FY 2012 budget to appropriate funds
for capital projects not completed in the prior fiscal year. The amount shown in the Metered Parking
Fund must be used for specific purposes pursuant to constraints imposed by the Commission in
creating the Fund.
Assigned Fund Balance
None
Limited to the General Fund and represents fund balance not classified in the other categories.
76
September 30, 2011
O – SUBSEQUENT EVENT
1. Clean Water State Revolving Fund Loan Agreement
The wastewater treatment plant operated by the City does not meet the Total Maximum Daily
Load (TMDL) standards finalized by the EPA in 2007. The City commissioned a study to
determine what upgrades, with an appropriate timeline for construction, were required to meet
the new TMDL standards.
A series of public meetings were held on the subject and Resolution 2009 – 29 on August 20,
2009, adopted the final report. Concurrent with the report, a study of financing options
concluded that the most favorable option was the state revolving loan agreement. The City also
determined that an aquifer storage and recovery (ASR) well could be included in the project
financing plan. Resolution 2011 - 16 on June 2, 2011 authorized the application for and
acceptance of the state revolving loan. The maximum authorization is shown below:
Category
Allowance cost
Construction & demolition
Contingencies
Technical services after bid opening
SUBTOTAL (disbursable amount)
Capitalized interest
TOTAL (loan principal amount)
Loan service fee
TOTAL AMOUNT
Cost
$ 1,439,911
17,275,000
1,727,500
1,296,000
21,738,411
636,600
22,375,011
434,768
$ 22,809,779
Forty (40) loan payments of $ 749,740 each are scheduled to begin with the initial payment due
March 15, 2014 and continue semiannually each September 15 and March 15 thereafter until
paid. The financing rate is 2.89% per annum. There are reserve requirements and revenue
pledges associated with the loan. The payment start date is based on the assumption that the
project will be completed six months prior (i.e. October 2013) to the initial payment. The data
above assumes the full amount would be borrowed.
77
September 30, 2011
O – SUBSEQUENT EVENT (continued)
The primary contract for the plant upgrade was awarded in August 2011 for $ 15,142,000. The
ASR well procurement is currently in progress. We are also using an Owner Direct Purchase
Plan (ODP). Based on the competitive bidding environment and the ODP, it appears certain
that our costs will be lower than the amounts shown above. Estimated costs are as follows:
Estimated
Project
Code
Cost
Project Phase Description
WRFP08
Wastewater Facility Plan
LS4CON
Lift station # 4 conversion
WRFIMP
WRF Improvements
ASRPH1
ASR Well Phase 1
140,000
ASRPH2
ASR Well Phase 2
1,500,000
$ 16,740,000
250,000
984,000
$ 17,974,000
Project Totals
Engineering fees (ASR well)
Engineering fees (other projects)
TOTAL ESTIMATED COST
$
300,000
500,000
14,300,000
As the project progresses contract amendments to reflect actual circumstances are common, so
the loan payment will be recalculated accordingly. An initial cash draw of $ 1,007,938 was
received on October 6, 2011.
78
September 30, 2011
P – INFORMATION ITEMS
1. Community Redevelopment Agency
In 2008, the City’s electorate approved the formation of a Community Redevelopment Agency
(CRA). As of September 30, 2011 the CRA has been formed, and the plan is scheduled for
delivery to the taxing authorities in April, 2012. Tax increment funding (TIF) will not be available
for the FY 2013 budget. The FY 2012 budget was prepared without the TIF. The TIF funding is
expected in FY 2014.
2. State Board of Administration (SBA) Florida Prime (formerly Local Government Surplus Trust
Funds Investment Pool – Fund A) (LGIP-A)
In December 2008, all Florida Prime balances became 100% liquid.
Currently, LGIP Fund B participants are prohibited from withdrawing from that pool. Fund B
cash holdings are being distributed as they become available from maturities, sales, investment
interest and other income received from the assets in Fund B to the Florida Prime accounts of
participants in proportion to their original adjusted Fund B balances. The investment objective
of Fund B is to maximize the present value of distributions to participants.
The Fund B balance as of September 30, 2011, is $ 22,774. The SBA has, in accordance with
GASB 31, provided a fair value factor of .7568386 to value the City’s investment. Our adjusted
balance is $ 17,236. The weighted average life (WAL) is estimated at 4.82 years.
Additional information regarding these funds may be obtained from the State Board of
Administration.
3. Utility Billing change
The City entered an interlocal agreement with the City of Cocoa regarding the billing of utility
accounts. The transition began in June 2011 and is continuing smoothly. The deposits of our
utility customers have been transferred to the City of Cocoa. Customer deposits are now
collected and administered in accordance with their policies. Our agency fund for such deposits
has been closed.
79
80
REQUIRED
SUPPLEMENTARY
INFORMATION
(RSI)
81
Required Supplementary Information
September 30, 2011
Two schedules of actuarial trend information typically must be presented in connection with defined
benefit pension plans.
1. Schedule of Funding Progress (Pension Plans)
The schedule of funding progress is designed to show the extent to which a plan has over time set
aside assets sufficient to cover its actuarial accrued liability.
Actuarial
Actuarial
Accrued
Actuarial
Value of
Liability
Valuation
Assets
(AAL)
Date
(a)
(b)
General Employees' Pension Trust Fund
10/1/2011
$ 16,055,038
$ 15,623,261
10/1/2010
15,944,467
15,509,486
10/1/2009
15,340,869
14,790,697
10/1/2008
14,594,805
13,834,187
10/1/2007
12,857,634
12,882,425
10/1/2006
10,962,987
11,265,446
10/1/2005
9,390,224
9,841,362
10/1/2004
7,856,525
8,471,448
10/1/2003
6,877,248
7,644,786
10/1/2002
5,977,396
6,875,026
Police Officers' Retirement Trust Fund
10/1/2011
$ 7,066,831
$ 14,287,613
10/1/2010
7,206,808
14,638,112
10/1/2009
7,027,836
13,975,918
10/1/2008
7,098,373
13,177,991
10/1/2007
7,342,820
12,263,527
10/1/2006
6,951,162
11,523,256
10/1/2005
6,606,725
11,019,222
10/1/2004
6,496,318
10,432,694
10/1/2003
6,701,023
9,633,760
10/1/2002
6,045,655
5,954,261
Firefighters' Retirement Trust Fund
10/1/2011
$ 6,963,778
$
10/1/2010
7,045,162
10/1/2009
6,991,841
10/1/2008
6,687,635
10/1/2007
6,086,462
10/1/2006
5,519,891
10/1/2005
4,964,802
10/1/2004
4,705,949
10/1/2003
4,828,035
10/1/2002
4,589,143
12,180,852
12,366,572
11,935,259
11,522,353
10,496,385
9,681,202
8,660,400
7,921,292
7,671,211
7,180,158
Unfunded
AAL
(UAAL)
( b-a )
Funded
Ratio
( a/b )
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
( b-a/c )
$
(431,777)
(434,981)
(550,173)
(760,618)
24,791
302,460
451,138
614,924
767,538
897,629
102.76%
102.80%
103.72%
105.50%
99.81%
97.32%
95.42%
92.74%
89.96%
86.94%
$
4,879,634
4,871,767
4,915,439
4,952,206
4,944,917
4,612,421
4,542,130
4,150,108
4,140,527
3,640,104
-8.85%
-8.93%
-11.19%
-15.36%
0.50%
6.56%
9.93%
14.82%
18.54%
24.66%
$
7,220,782
7,431,304
6,948,082
6,079,619
4,920,707
4,572,094
4,412,497
3,936,376
2,932,737
(91,394)
49.46%
49.23%
50.29%
53.87%
59.88%
60.32%
59.96%
62.27%
69.56%
101.53%
$
1,852,447
1,841,483
1,778,691
1,710,197
1,618,378
1,458,935
1,486,347
1,497,959
1,413,962
1,334,058
389.80%
403.55%
390.63%
355.49%
304.05%
313.39%
296.87%
262.78%
207.41%
-6.85%
$
5,217,074
5,321,410
4,943,418
4,834,718
4,409,924
4,161,310
3,695,598
3,215,343
2,843,176
2,591,015
57.17%
56.97%
58.58%
58.04%
57.99%
57.02%
57.33%
59.41%
62.94%
63.91%
$
1,362,467
1,365,285
1,376,546
1,478,539
1,337,513
1,391,950
1,318,190
1,151,460
1,220,498
1,083,118
382.91%
389.77%
359.12%
326.99%
329.71%
298.96%
280.35%
279.24%
232.95%
239.22%
82
September 30, 2011
2. Schedule of Employer Contributions (Pension Plans)
The schedule of employer contributions is designed to show the extent to which employers have
actually funded their actuarially determined annual required contribution over time.
Schedule of Required Contributions From
Employers and Other Contributing Entities
Year Ended
Sept. 30
2011
2010
2009
2008
2007
2006
Annual
Required
Contribution
$ 773,188
627,451
692,405
786,426
867,925
819,319
Percentage
Contributed
(Employer)
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
State
Contribution
N/A
N/A
N/A
N/A
N/A
N/A
Year Ended
Sept. 30
2011
2010
2009
2008
2007
2006
Annual
Required
Contribution
$ 792,672
667,614
488,842
438,734
455,328
397,297
City
Contribution
$ 704,001
573,850
396,286
344,948
362,772
329,337
State
(on behalf)
Contribution
$
88,671
93,765
96,994
98,452
92,556
67,960*
Percentage
Contributed
100.00%
100.00%
100.91%
101.06%
100.00%
100.00%
Year Ended
Sept. 30
2011
2010
2009
2008
2007
2006
Annual
Required
Contribution
$ 521,671
492,095
485,296
446,557
407,466
341,677
City
Contribution
$ 436,864
407,287
400,489
361,750
322,659
269,342
State
(on behalf)
Contribution
$ 84,807**
84,807**
84,807**
84,807**
84,807**
72,335**
*Frozen per Chapter 185, F.S., as amended
**Frozen per Chapter 175, F.S., as amended
83
Percentage
Contributed
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
September 30, 2011
3. Narrative Summary (Pension Plans)
During the past twelve (12) months, the experience has been mostly in line with the Plan’s actuarial
assumptions.
The primary source of unfavorable experience is due to a -2.0 % investment return (actuarial asset
basis) that was less than the 8.0% assumption. This loss was offset by average increases in
pensionable compensation that were less than the assumed rate by more than two (2%) percent.
1. Plan Changes Since Prior Valuation
There have been no changes in benefits since the prior valuation.
2. Actuarial Assumptions & Method Changes Since Prior Valuation
There have been no changes in methods or actuarial assumptions since the prior valuation.
During the past twelve (12) months, the experience has been more favorable than expected on the
basis of the Plan’s actuarial assumptions.
The primary components of gain included average pensionable earnings that were less than the
assumed rate, greater than expected turnover, and greater than expected retiree mortality. These
gains were partially offset by a -0.3% investment return (Actuarial Asset Basis) that was less than
the 8% assumption.
There have been no changes in methods or actuarial assumptions since the prior valuation.
84
September 30, 2011
3. Narrative Summary (Pension Plans) (continued)
During the past twelve (12) months, the experience has been slightly more favorable than expected
on the basis of the Plan’s actuarial assumptions.
The primary components of gain included average pensionable earnings that were less than the
assumption by more than 6% and greater than expected retiree mortality. Partially offsetting this
gain was a -0.7% investment return (Actuarial Asset Basis) that was less than the 8% assumption.
There have been no changes in benefits since the prior valuation. To comply with statutory
requirements the payroll growth assumption was decreased from three (3%) percent to the
ten (10) year average of two (2.9%) and nine tenths percent.
4. Narrative Summary (OPEB Obligation)
The OPEB liability is currently partially funded, with a combination of annual contributions to a
professionally managed fund and City premium payments on a pay-as-you-go basis. See note M,
paragraph 4 for additional details.
5. Schedule of Funding Progress (OPEB Obligation)
Schedule of Funding Progress
Actuarial
Valuation
Date
10/1/2010
10/1/2009
10/1/2008
Actuarial
Value of
Assets
(AVA)
(a)
$ 217,284
101,350
-
Actuarial
Accrued
Liability
(AAL)
(b)
$4,797,993
4,522,910
4,592,459
Unfunded
AAL
(UAAL)
( b-a )
$4,580,709
4,421,560
4,592,459
85
Funded
Ratio
( a/b )
4.50%
2.20%
-
Covered
Payroll
(c)
$7,854,652
8,665,346
7,719,503
Ratio of
UAAL to
Covered
Payroll
( b-a/c )
58.30%
51.00%
59.50%
September 30, 2011
6. Schedule of Employer Contributions (OPEB Obligation)
Contributions began in October 2008 (FY 2009)
Schedule of Employer Contributions
Fiscal
Year
Ended
9/30/2011
9/30/2010
9/30/2009
Annual
OPEB
Cost
$ 537,774
529,764
503,956
Percentage
Contributed
22.2%
28.1%
29.3%
86
Net
OPEB
Obligation
$ 1,155,528
736,955
356,273
OTHER SUPPLEMENTAL INFORMATION
87
92
This part of the City of Cocoa Beach’s Comprehensive Annual Financial Report
presents detailed information as a context for understanding what the information in
the financial statements, note disclosures, and required supplementary information
says about the city’s overall financial health.
Table of Contents & Additional Notes
A. Financial Trends
These schedules contain trend information to help the reader understand how the city’s
financial performance and well-being have changed over time.
Page
Table A - 1
95
Table A - 2
96
Table A - 3
Fund Balances - Governmental Funds
98
Table A - 4
Changes in Fund Balances - Governmental Funds
99
B. Revenue Capacity
These schedules contain information to help the reader assess the city’s most significant local
revenue source, the property tax.
Page
Table B - 1
100
Table B - 2
101
Table B - 3
102
Table B - 4
103
C. Debt Capacity
These schedules present information to help the reader assess the affordability of the city’s
current levels of outstanding debt and the city’s ability to issue additional debt in the future.
Page
Table C - 1
104
Table C - 2
Ratios of General Bonded Debt Outstanding (See Notes)
Table C - 3
105
Table C - 4
Legal Debt Margin Information (See Notes)
Table C - 5
107
D. Demographic and Economic Information Financial Trends
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the city’s financial activities take place.
Page
Table D - 1
108
Table D - 2
Principal Employers
109
(Continued)
93
(Continued)
E. Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the city’s financial report relates to the services the city provides and the activities
it performs.
Page
Table E - 1
Full-time Equivalent City Government Employees by
Function/Program
110
Table E - 2
111
Table E - 3
112
Additional Notes
Unless otherwise noted, the information in these schedules is derived from the City’s Comprehensive
Annual Financial Report (CAFR) for the relevant year.
In 2004 the Governmental Accounting Standards Board (GASB) issued Statement 44, which governs
the preparation of the statistical section with an effective date for periods beginning after June 15,
2005. Financial statements present the financial position of a government as of a particular date. The
intention of Statement 44 is to present detailed information, in ten-year trends, to assist users in
evaluating the economic condition of a government over time. This gives a much broader view than
the financial statements themselves.
Most schedules require data presentation retroactively only to the implementation date of GASB
Statement 34. The City implemented GASB Statement 34 in Fiscal Year 2002. The tenth
presentation year was reached in FY 2011.
Actual titles of some schedules will vary from the general titles shown above.
Neither the City of Cocoa Beach Charter or Code, nor the Florida Statutes limit the amount of debt the
City of Cocoa Beach can issue; therefore tables showing the City’s legal debt limit and debt margins
are not applicable. The City has not issued any General Bonded Debt in the last ten (10) years.
The following statistical tables which are normally included in a government’s Comprehensive Annual
Financial Report are not applicable and, accordingly, are not included in this report.
Table C - 2
Table C - 4
Ratios of General Bonded Debt Outstanding
Legal Debt Margin Information
94
Table A-1
Last Ten Fiscal Years
2002
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
$
9,786,494
129,016
9,742,123
19,657,633
2003
$
11,307,449
100,562
9,815,606
21,223,617
2004
$
2005
2006
2007
12,301,764
97,940
9,481,827
21,881,531
$ 12,665,490
239,158
10,595,813
23,500,461
$ 13,349,185
313,723
11,190,726
24,853,634
$ 17,216,916
384,506
6,413,259
24,014,681
2008
$
2009
2010
2011
17,410,323
245,917
7,504,212
25,160,452
$ 17,427,319
225,227
8,814,972
26,467,518
$ 17,780,910
201,550
8,930,157
26,912,617
$ 18,708,421
205,435
8,743,640
27,657,496
Restricted
Unrestricted
Total business-type activities net assets
11,911,790
4,176,306
8,619,549
24,707,645
17,129,299
2,709,115
8,938,629
28,777,043
17,844,203
2,652,722
9,084,785
29,581,710
18,763,584
2,566,935
8,853,721
30,184,240
19,954,446
2,580,670
8,501,514
31,036,630
23,286,859
1,927,068
8,451,326
33,665,253
25,798,570
2,041,853
6,480,832
34,321,255
27,284,398
2,025,593
3,987,231
33,297,222
31,284,569
112,840
1,893,282
33,290,691
31,165,812
105,626
2,447,560
33,718,998
Primary government
Restricted
Unrestricted
Total primary government net assets
21,698,284
4,305,322
18,361,672
44,365,278
28,436,748
2,809,677
18,754,235
50,000,660
30,145,967
2,750,662
18,566,612
51,463,241
31,429,074
2,806,093
19,449,534
$ 53,684,701
33,303,631
2,894,393
19,692,240
$ 55,890,264
40,503,775
2,311,574
14,864,585
$ 57,679,934
43,208,893
2,287,770
13,985,044
59,481,707
44,711,717
2,250,820
12,802,203
$ 59,764,740
49,065,479
314,390
10,823,439
$ 60,203,308
49,874,233
311,061
11,191,200
$ 61,376,494
$
$
$
Notes:
1.
Accrual basis of accounting.
2.
Accounting standards require that net assets be
reported in three (3) components in the
financial statements: invested in capital
assets, net of related debt; restricted; and
unrestricted.
3.
Net assets are considered restricted only
when an external party, such as the state
or federal government, places a restriction
on how the resources may be used, or
through enabling legeslation enacted
by the City.
95
$
Table A-2, Part 1
2002
Program Expenses
2003
2004
2005
2006
2007
2008
2009
2010
2011
General Government
$
Public Safety
Physical Environment
Transportation/Public Works
Recreation
Interest on long-term debt
Total governmental activities program
expenses
2,463,930
5,374,869
1,145,755
3,287,336
1,025,329
55,737
$
2,243,760
5,634,022
1,167,381
3,062,277
834,416
72,834
$
2,707,193
6,202,393
1,205,702
3,731,067
861,985
92,597
$
3,312,362
5,960,791
1,254,638
3,337,931
899,680
98,331
$
3,582,822
6,644,722
1,322,685
3,658,984
718,373
80,381
$
4,041,326
7,280,825
1,419,442
3,695,886
942,451
68,190
$
3,558,863
7,628,097
1,472,568
3,043,125
957,307
32,660
$
3,802,676
7,382,335
1,529,693
3,037,158
899,025
27,292
$
3,249,190
8,146,626
1,474,627
3,291,140
967,958
21,608
$
3,357,724
8,895,179
1,463,330
3,135,193
1,008,353
15,697
13,352,956
13,014,690
14,800,937
14,863,733
16,007,967
17,448,120
16,692,620
16,678,179
17,151,149
17,875,476
4,773,981
2,193,177
430,773
4,224,605
2,298,850
456,592
4,377,204
2,365,398
477,606
4,875,069
2,341,842
494,752
4,957,482
2,495,109
583,562
4,880,873
3,156,264
606,592
4,895,213
2,577,661
582,439
5,242,467
2,693,504
606,009
4,894,135
2,691,019
586,175
4,682,920
2,821,748
510,821
7,397,931
6,980,047
7,220,208
7,711,663
8,036,153
8,643,729
8,055,313
8,541,980
8,171,329
8,015,489
$ 20,750,887
$ 19,994,737
$ 22,021,145
$ 22,575,396
$ 24,044,120
$ 26,091,849
$ 24,747,933
$ 25,220,159
$ 25,322,478
$
$
$
$
$
$
$
$
$
$
$
Utilities System
Golf
Stormwater
Total business-type activities program
expenses
Total primary government program
expenses
25,890,965
Program Revenues
Capital grants and contributions
931,057
405,636
1,441,756
299,114
209,149
101,953
-
Total governmental activities program
revenues
3,388,665
3,319,963
4,858,240
5,393,290
5,084,562
5,462,739
5,229,605
6,059,255
5,982,185
7,192,349
Capital grants and contributions
5,236,047
2,219,234
449,225
15,000
-
5,212,772
2,200,922
528,931
105,600
36,065
5,194,029
2,242,289
570,784
25,000
-
5,092,130
2,353,821
576,467
161,540
5,038,354
2,466,258
576,097
431,272
-
4,941,702
2,429,321
649,478
1,176,127
5,042,600
2,364,654
673,545
655,508
5,009,239
1,749,352
665,794
177,425
5,169,109
1,977,061
628,693
720,442
5,544,368
2,103,128
573,019
635,021
Total business-type activities program
revenues
7,919,506
8,084,290
8,032,102
8,183,958
8,511,981
9,196,628
8,736,307
7,601,810
8,495,305
8,855,536
$ 11,308,171
$ 11,404,253
$ 12,890,342
$ 13,577,248
$ 13,596,543
$ 14,659,367
$ 13,965,912
$ 13,661,065
$ 14,477,490
General government
Public Safety
Recreation
Operating grants and contributions
979,539
323,170
1,479,497
312,301
193,647
31,809
-
1,178,295
334,693
1,475,062
448,782
201,339
1,220,069
-
1,749,595
398,368
1,476,766
815,176
211,852
741,533
-
1,569,992
620,812
1,525,285
889,516
205,218
273,739
-
1,771,039
623,467
1,537,120
1,128,888
205,513
196,712
-
1,501,714
572,548
1,586,746
963,093
218,196
387,308
-
2,139,597
402,905
1,575,950
1,068,118
245,272
627,413
-
2,112,700
434,621
1,544,614
1,026,787
223,766
639,697
2,747,622
420,858
1,588,430
1,159,062
250,063
1,026,314
Charges for services:
Utilities System
Golf
Stormwater
Operating grants and contributions
Total primary government program
revenues
96
$
16,047,885
Table A-2, Part 2
General Revenues and Other Changes in Net Assets
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ (9,964,291)
$ 5,246,406
$ (9,942,697)
$
813,153
$ (9,151,138)
$ 5,246,406
905,640
$ (9,037,057)
(9,470,443)
$ (10,923,405)
$ (11,985,381)
$ (11,463,015)
$ (10,618,924) $ (11,168,964)
$
(10,683,127)
$
472,295
(8,998,148)
475,828
$ (10,447,577)
552,899
$ (11,432,482)
680,994
$ (10,782,021)
(940,170)
323,976
$ (11,559,094) $ (10,844,988)
$
840,047.00
(9,843,080)
$
4,947,655
$ 5,246,406
$
327,997
380,924
387,568
$
6,144,630
408,544
$
423,150
$
428,811
$
413,309
$
396,620
360,065
$
6,327,375
366,540
Franchise taxes
1,062,479
1,074,565
1,163,260
1,188,000
1,454,603
1,545,098
1,460,119
1,550,539
1,424,131
1,357,980
Excise Taxes
1,943,202
1,891,561
1,836,706
1,865,377
1,878,965
1,833,416
1,811,006
1,915,443
1,977,281
1,926,808
Intergovernmental
1,361,929
1,071,509
1,125,972
1,168,907
1,230,616
1,107,088
739,803
690,753
676,372
683,612
185,379
153,547
99,400
222,861
565,345
452,083
413,916
135,186
118,510
123,315
-
-
-
-
-
-
424,447
33,943
79,765
151,322
22,584
8,344
16,540
-
-
-
-
-
-
-
300,000
246,568
210,544
91,054
91,054
341,054
221,054
441,054
491,054
10,151,225
10,073,424
10,600,611
11,089,373
12,276,578
11,146,428
12,608,786
11,925,990
11,614,063
11,428,006
323,231
138,304
109,571
221,289
467,616
514,399
316,061
137,191
110,547
79,314
-
-
-
-
-
-
-
Net (Expense) Revenue
Total primary government net expense
General Revenues
and Other Changes in Net Assets
General Revenues
Property taxes
Local Option Gas Tax
Unrestricted investment earnings
Miscellaneous revenues
Gain on sale of capital assets
Transfers
Total governmental activities
5,760,621
6,632,845
7,341,257
(1,561,325)
7,005,132
6,982,452
$
6,536,885
Unrestricted investment earnings
440
Gain on sale of capital assets
Transfers
Total business-type activities
Total primary government
(2,503)
-
(300,000)
(246,568)
(210,544)
(91,054)
(91,054)
1,561,325
(341,054)
(221,054)
(441,054)
(491,054)
23,671
(110,767)
(100,973)
130,235
376,562
2,075,724
(24,993)
(83,863)
(330,507)
(411,740)
$ 10,174,896
$ 9,962,657
$ 10,499,638
$
11,219,608
$
12,653,140
$
13,222,152
$
12,583,793
$
11,842,127
$
11,283,556
$
11,016,266
(141,063)
378,697
657,914
1,618,930
1,353,173
836,824
993,476
804,667
602,530
852,390
695,761
$ 1,372,173
Total primary government
$
$
1,462,581
$
2,221,460
$
2,205,563
Note: Modified Accrual Basis of Accounting
97
(838,953)
1,145,771
2,628,623
$
1,789,670
1,307,066
656,001
$
1,801,772
445,099
(1,024,033)
$
283,033
744,879
(6,531)
$
438,568
428,307
$
1,173,186
Table A-3
Fund Balances, Governmental Funds
Last Nine Fiscal Years
Fiscal Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
General Fund
Reserved
$
Unreserved
112,576
$
9,624,619
159,999
$
9,552,635
141,392
$
8,498,184
279,013
$
10,001,075
740,067
$
10,416,471
1,263,382
$
5,288,000
800,507
$
6,737,924
686,318
$
8,667,363
2,665,004
$
7,247,210
-
Nonspendable
3,117,227
Restricted
Committed
1,083,606
Assigned
Unassigned
5,691,311
Total general fund
9,737,195
9,712,634
8,639,576
10,280,088
11,156,538
6,551,382
7,538,431
9,353,681
9,912,214
9,892,144
73,007
100,562
97,940
108,191
124,576
192,470
245,917
225,227
201,550
-
657,475
853,880
1,244,392
1,322,727
1,190,326
1,105,283
1,127,927
988,057
922,379
-
All Other Governmental Funds
Reserved, reported in:
Confiscated Property Fund
Unreserved, reported in:
Metered Parking Fund
Nonspendable
Restricted
205,435
Committed
1,032,001
Assigned
Unassigned
Total all other governmental funds
Note:
$
730,482
$
954,442
$
1,342,332
$
1,430,918
$
1,314,902
Modified Accrual Basis of Accounting
The city implemented GASB # 54 for the fiscal year ending September 30, 2011
See Note N to the financial statements for details
98
$
1,297,753
$
1,373,844
$
1,213,284
$
1,123,929
$
1,237,436
Table A-4
Changes in Fund Balances, Governmental Funds
`
2002
2003
2004
2005
Fiscal Year
2006
2007
2008
2009
2010
2011
Revenues
Taxes
Licenses and permits
Intergovernmental Revenues
Charges for services
Fines & Forfeitures
Investment earnings
Miscellaneous Revenues
Total Revenues
$
Expenditures
General government
Public Safety
Recreation
Debt Service
Principal
Interest
Capital Outlay
Total Expenditures
Excess of Revenues
Over (under) Expenditures
Notes:
$
7,710,702
405,513
1,093,433
4,167,991
260,491
153,547
43,214
13,834,891
$
8,201,776
420,144
1,922,339
4,576,624
236,137
99,400
172,243
15,628,663
$
9,606,551
528,133
2,320,440
3,717,123
278,298
222,861
128,203
16,801,609
$
10,389,563
459,922
1,504,355
3,961,940
365,883
565,345
23,078
17,270,086
$
11,148,582
494,035
1,303,800
4,172,475
503,051
452,083
96,466
18,170,492
$
10,689,566
352,169
1,127,111
4,072,471
417,657
413,916
424,447
17,497,337
$
10,845,054
359,821
1,318,166
4,718,683
353,338
135,186
33,943
17,764,191
$
10,298,362
353,869
1,321,858
4,552,958
429,872
118,510
79,765
17,155,194
$ 9,978,703
386,320
1,719,712
4,576,197
1,193,286
123,315
151,768
18,129,301
2,435,486
5,078,382
1,145,755
3,089,877
663,219
2,569,600
5,407,203
1,167,381
2,000,273
671,226
3,160,116
5,905,643
1,205,702
2,631,099
697,401
3,310,610
5,826,948
1,254,638
3,726,237
773,380
3,531,853
6,508,885
1,322,685
4,107,006
871,544
3,982,911
7,900,145
6,243,149
1,109,540
3,409,279
7,543,517
1,472,568
3,222,585
944,642
3,300,052
7,382,335
1,529,693
3,037,158
899,025
3,205,018
7,869,464
1,474,627
3,509,852
886,501
3,118,375
8,678,916
1,463,330
4,153,674
926,926
26,153
46,823
1,091,435
13,577,130
69,584
3,596,670
15,481,937
164,091
92,938
2,681,938
16,538,928
167,286
86,045
15,145,144
178,352
80,381
16,600,706
965,300
68,190
20,269,235
150,000
32,660
16,775,251
155,000
27,292
16,330,555
160,000
21,608
17,127,070
170,000
15,697
18,526,918
1,656,465
669,380
(2,098,743)
722,086
1,433,636
28,124
(397,617)
400,000
(308,946)
453,000
(361,946)
(962,237)
559,931
(2,121,256)
608,873
(267,819)
782,246
(561,192)
781,655
(340,601)
835,798
(344,744)
91,054
91,054
(2,523,562)
341,054
221,054
441,054
491,054
1,241,936
(941,936)
300,000
Total other financing sources
Debt service as a percentage of
non-capital expenditures
$
89,683
Other Financing Sources (Uses)
Land Purchases
Transfers in
Transfers out
Net change in fund balances
7,091,642
332,345
1,457,877
4,124,783
340,144
185,379
134,643
13,666,813
389,683
0.58%
(1,647,046)
(910,265)
1,421,799
(1,175,231)
1,422,926
(1,212,382)
246,568
$
(1,400,478) $
0.59%
210,544
(699,721)
1.85%
$
1,747,519
1.67%
$
760,434
1.56%
Negative net change in Fund Balance for FY2004 is the result of unbudgeted hurricane expenditures.
See Note J, Paragraph 2 of the FY 2005 financial statement notes for details.
Due to change in presentation, capital outlays are no longer segregated after FY 2004.
Rise of debt service percentage in FY 2007 is attributed to legal defeasance of a bond issue.
Modified accrual basis of accounting.
99
$
(4,622,305)
5.10%
$
1,063,140
1.18%
$
1,654,690
1.13%
$
469,178
1.07%
$
93,437
1.01%
Table B-1
Fiscal
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Taxable Value
Real Property
for Operating
Purposes
$ 967,244,490
1,065,850,840
1,197,114,330
1,363,553,950
1,621,506,020
2,063,281,760
2,036,579,260
1,639,162,920
1,417,116,320
1,273,147,270
Personal
Property for
Operating
Purposes
$ 48,974,275
49,440,074
49,118,695
48,819,916
50,841,054
58,788,193
57,643,659
53,665,754
43,261,675
34,617,909
$
Gross
Taxable
Value
1,016,218,765
1,115,290,914
1,246,233,025
1,412,373,866
1,672,347,074
2,122,069,953
2,094,222,919
1,692,828,674
1,460,377,995
1,307,765,179
New
Construction
Taxable
Value
$
6,428,743
20,573,681
18,093,909
8,840,412
31,630,124
15,507,817
17,133,370
5,605,130
2,756,180
2,615,190
Adjusted
Taxable
Value
$ 1,009,790,022
1,094,717,233
1,228,139,116
1,403,533,454
1,640,716,950
2,106,562,136
2,077,089,549
1,687,223,544
1,457,621,815
1,305,149,989
Source: Brevard County Property Appraiser (Forms DR-422 and DR-420)
Notes: *Final Taxable Value determined after Valuation Board rulings
**The rate used in the calculation for property taxes. One mil equals $1 per $1,000 of taxable
value. A millage of 4.500 which is the current (FY 2011) rate in effect for the City of Cocoa Beach is equal
to $4.50 for each $1,000 of taxable value on real property.
Property is assessed at actual value and therefore a separate table for assessed
and actual data is not presented.
100
Final
Taxable
Value*
$ 1,015,386,455
1,110,250,364
1,246,422,512
1,412,942,707
1,674,992,031
2,115,735,252
2,087,281,923
1,938,070,723
1,457,361,276
1,457,119,766
Millage
Rate **
5.0374
4.8900
4.7800
4.5000
4.1000
3.5800
3.4642
3.7186
4.0000
4.5000
Table B-2
City
Direct Rates
Fiscal
Year
Basic
Rate *
Overlapping Rates
Brevard
County
Brevard County Schools
Operating
Capital Outlay
Other **
Total
Millage
2002
5.0374
5.8618
6.6050
2.0000
0.5005
20.0047
2003
4.8900
5.8395
6.6050
2.0000
0.5228
19.8573
2004
2005
4.7800
4.5000
5.8536
5.4211
6.4050
6.1940
2.0000
2.0000
0.5005
0.5005
19.5391
18.6156
2006
4.1000
4.8245
5.9630
2.0000
0.5160
17.4035
2007
3.5800
4.9370
5.6670
2.0000
0.5005
16.6845
2008
3.4642
4.6762
5.9110
1.7500
0.4503
16.2517
2009
3.7186
4.5211
6.1870
1.5000
0.4503
16.3770
2010
4.0000
5.2249
6.1530
1.5000
0.4503
17.3282
2011
4.5000
5.9199
6.6120
1.5000
0.3658
18.8977
Sources: Brevard County Property Appraiser website
Notes: * The rate used in the calculation for property taxes. One mil equals $1 per $1,000 of taxable value.
The tax rate on real property is based on $1 per $1,000 of assessed property value.
** "Other" includes Florida Inland Navigation District
and St. John's River Water Management District
Overlapping rates are those of local and county governments that apply to property owners within
the City of Cocoa Beach.
The total millage column applies to all property owners within the City limits.
101
Table B-3
Current Year and Nine Years Ago
2011
Taxpayer
5500 North Corp. (Days Inn/Best Western)
International Palms (LSREF ORANGE (COCOA) LLC)
Cocoa Beach Development, Inc.(Cocoa Beach Resort)
Cocoa Beach Hotel Fund (Doubletree)
Cocoa Beach Hotels, Ltd (Hilton)
Cocoa Beach Surf Company
Discovery Resort, Inc.
Inland Western Cocoa Beach
Las Olas Beach Club
Northport, Inc.(Ocean Landings)
Ocean Partners Assoc., Ltd (Hampton/Marriot)
Ron Jon Surf Shop of Florida, Inc.
TOTALS
Total City Final Taxable Value
Source:
$
Taxable
Assessed
Value
11,350,040
8,500,000
20,632,860
4,400,000
8,500,000
4,000,000
10,791,890
5,600,000
8,934,200
11,498,870
6,404,870
100,612,730
$
1,457,119,766
$
Rank
3
6
1
9
6
10
4
8
5
2
7
Brevard County Property Appraiser
Multiple properties may be included in some Taxable Assessed Value Totals
102
2003
Percentage
of Total City
Taxable
Assessed
Value
0.78%
0.58%
1.42%
0.30%
0.58%
0.27%
0.74%
0.38%
0.61%
0.79%
0.44%
6.90%
$
Taxable
Assessed
Value
9,450,000
13,300,000
24,908,250
7,500,000
12,000,000
14,846,810
5,092,000
15,853,490
11,600,000
7,061,910
121,612,460
$
1,110,250,364
$
Rank
7
4
1
8
5
3
10
2
6
9
Percentage
of Total City
Taxable
Assessed
Value
0.85%
1.20%
2.24%
0.68%
1.08%
1.34%
0.46%
1.43%
1.04%
0.64%
10.95%
Table B-4
Fiscal
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$
Gross
Tax
Levy (1)
4,681,065
5,119,100
5,541,546
5,956,994
6,355,683
6,856,623
7,582,302
7,230,762
7,210,039
6,558,125
6,563,416
Collected Within the
Fiscal Year of the Levy
Percentage
Amount
of Levy
$ 4,516,989
96.49%
4,921,996
96.15%
5,228,619
94.35%
5,743,981
96.42%
6,042,789
95.08%
6,621,255
96.57%
7,283,600
96.06%
6,969,487
96.39%
6,949,361
96.38%
6,502,384
99.15%
6,302,345
96.02%
Current Year
Collections
for Prior
Years
$
12,602
16,481
11,132
11,420
101,031
11,590
57,656
35,645
33,091
45,134
25,030
Total Collections
Percentage
Amount
of Levy
$ 4,529,591
96.76%
4,938,477
96.47%
5,239,751
94.55%
5,755,401
96.62%
6,143,820
96.67%
6,632,845
96.74%
7,341,256
96.82%
7,005,132
96.88%
6,982,452
96.84%
6,547,518
99.84%
6,327,375
96.40%
Source: (1) Calculated from Brevard County Tax Collector's Office Report.
(Final Taxable Value multiplied by millage rate, less allowance for adjustments and discounts)
Notes: Reference the financial statements, Note A, Paragraph 14.
103
Table C-1
Governmental Activities
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
Notes:
Public
Improvement
Revenue
Bonds
$
930,029
895,938
858,652
820,300
-
Capital
Improvement
Revenue
Note
$
1,540,000
1,410,000
1,280,000
1,140,000
995,000
845,000
690,000
530,000
360,000
Business Type Activities
Utility
Clean
System
Public
Water
Improvement
Improvement
State
Revenue
Revenue
Revolving
Bonds
Bonds
Loan
$ 13,145,000
$ 3,434,971
$ 3,604,499
11,660,000
3,309,062
5,064,955
10,115,000
3,171,348
4,861,926
8,535,000
3,029,700
4,654,718
6,910,000
4,441,247
5,260,000
4,221,323
3,565,000
3,994,751
3,761,330
3,520,852
Total
Debt of
Primary
Government
$ 22,654,499
22,339,955
20,286,926
18,179,718
12,346,247
10,326,323
8,249,751
4,291,330
3,880,852
The Public Improvement Revenue Refunding Bonds, Series 2002 were
apportioned between the General Fund and the Golf Course Enterprise Fund.
The bonds were legally defeased in 2007.
Percentage of personal income and per capita amounts calculated from information in Table D-1
The Utility System Bonds Series 2002 were legally defeased March 3, 2010.
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
104
Debt as
Percentage
of
Personal
Income
6.30%
6.10%
5.40%
3.99%
2.68%
2.26%
1.85%
0.87%
0.83%
Debt
Per
Capita
1811
1751
1579
1411
966
806
645
340
346
Table C-3
As of September 30, 2011
Governmental Unit
City Direct Debt (governmental activities)
Overlapping Debt
Brevard County:
Governmental Activities Debt
Total Direct and Overlapping Debt
Debt
Outstanding
$
Estimated
Percentage
Applicable
360,000
100.00%
328,859,398
5.2775%
$ 329,219,398
Estimated
Share of
Overlapping
Debt
$
360,000
17,355,555
$ 17,715,555
Source: Brevard County Finance Department - Comprehensive Annual Financial Report 2010, Table 11
Note: Percentage based on the Brevard County Property Appraiser website 2011 taxable assessed valuation
105
106
Table C-5
Utilities System Improvement
Utilities System Improvement Revenue Refunding Bonds, Series 2002
Fiscal
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Fiscal
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
Notes:
(1)
Utility
Gross
Pledged
Revenue
$ 5,843,639
5,379,480
5,410,513
5,253,670
5,469,626
5,467,882
5,371,208
5,181,664
-
(2)
Less:
Operating
Expenses
$
3,439,321
3,112,730
2,880,146
3,137,640
3,104,397
3,371,389
3,420,178
3,785,669
-
(3)(8)
Debt Service
Principal
Interest
$ 960,000
$ 889,405
1,010,000
623,321
1,485,000
311,100
1,545,000
280,800
1,580,000
249,550
1,625,000
216,688
1,650,000
179,825
1,695,000
135,643
-
Coverage
1.30
1.39
1.41
1.16
1.29
1.14
1.07
0.76
-
(4)
Gross
Pledged
Revenue
$ 3,278,118
3,360,662
3,512,373
3,820,258
-
General Fund & Golf Course
Public Improvement Revenue Refunding Bonds, Series 2002
(2)
Less
Net
(5)(6)(7)
Operating
Pledged
Debt Service
Expenses
Revenue
Principal
Interest
$
2,059,399
$ 1,218,719
$
$ 198,293
1,897,317
1,463,345
160,000
180,640
1,945,770
1,566,603
175,000
175,615
2,137,219
1,683,039
180,000
170,290
-
Coverage
6.15
4.30
4.47
4.80
-
Net
Pledged
Revenue
$ 2,404,318
2,266,750
2,530,367
2,116,030
2,365,229
2,096,493
1,951,030
1,395,995
-
(1) Gross pledged revenues include sewer system connection fees accounted for as contributed capital in the
financial statements but available for debt service in accordance with the bond resolution.
(2) Direct operating expenses exclude depreciation and amortization.
(3) The Utility bonds were advance refunded in November 2002. The debt service requirement for FY 2003
includes the November principal & interest requirements for the Series 1993 Bonds and the May interest
requirement for the Series 2002 Bonds.
(4) Gross pledged revenues include golf course operating revenue, electric franchise fees and occupational
licenses.
(5) The Public Improvement Revenue Refunding Bonds, Series 2002 payments are split between
the General Fund and the Golf Course Fund. Refer to Footnote H of the Financial Statements
for a detailed explanation.
(6) The Public Improvement Bonds were advance refunded in August 2002. The debt service requirement
for FY 2003 was on the Series 1993 Public Improvement Revenue Bonds, which had principal & interest
payments of $135,000 & $233,760 respectively prior to their retirement.
(7) The Public Improvement Bonds were legally defeased as of April 2007.
(8) The Utilities System Improvement Bonds were legally defeased as of March 3, 2010.
107
Table D-1
(1)
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Population
12,482
12,661
12,509
12,761
12,850
12,880
12,785
12,805
12,800
12,631
11,231
(2)
Personal
Income
$ 340,721,154
351,494,682
357,369,621
384,642,062
408,630,000
458,927,280
460,260,000
456,254,955
445,977,600
492,583,738
468,939,174
(3)
Per Capita
Personal
Income
$ 27,297
27,762
28,569
30,142
31,800
35,631
36,000
35,631
34,842
38,998
41,754
(4)
Median
Age
53.6
53.6
52.7
53.0
53.6
52.7
53.0
53.3
53.2
53.9
54.3
(5)
Unemployment
Rate
4.9%
5.2%
4.2%
4.7%
3.7%
3.4%
3.3%
6.5%
12.1%
12.9%
10.8%
Sources: (1) Local Government Financial Information Handbook
(2) Estimate (col. #1 x col. #3)
(3) State of Florida Bureau of Labor Market Information - rate is for Brevard County
(4 & 5) Economic Development Commission of Florida's Space Coast
(6) Brevard County Public Schools - Includes all three (3) schools within City limits
108
(6)
School
Enrollment
1,865
2,010
1,988
2,449
2,416
2,485
2,369
2,402
2,226
2,175
2,226
Table D-2
Principal Employers
Current Year and Ten Years Ago
2011
Employer
Brevard County Schools
Health First, Inc.
Harris Corporation
United Space Alliance
Brevard County Government
45th Space Wing DOD
Health Management Associates
NASA @ Kennedy Space Ctr.
Brevard Community College
Rockwell Collins Inc.
TOTALS
Employees
9,140
6,350
6,130
3,830
2,390
2,260
2,220
2,210
1,580
1,500
Rank
1
2
3
4
5
6
7
8
9
10
2002
Percentage of
Total County
Employment
4.80%
3.33%
3.22%
2.01%
1.25%
1.19%
1.16%
1.16%
0.83%
0.79%
Employees
8,152
6,300
5,000
5,624
2,466
1,951
1,835
19.74%
31,328
37,610
Source:
Note:
-
Economic Development Commission of Florida's Space Coast
Employers exclude retail operations
* Indicates figures for 2002 are unavailable at the time of publication
Employment figures are for Brevard County. No City figures are available
109
*
*
*
Rank
1
2
4
3
5
6
7
Percentage of
Total County
Employment
3.81%
2.95%
2.34%
2.63%
1.15%
0.91%
0.86%
14.65%
Table E-1
Full-time Equivalent
City Government Employees by Function/Program
Function/Program
General Government
Full-time Equivalent Employees as of September 30
2003
2004
2005
2006
31.3
32.3
33.3
33.3
2007
33.5
2008
32.8
2009
31.50
2010
31.65
2011
31.50
Police
53.5
53.0
54.0
56.5
58.5
56.5
53.50
51.50
53.60
Fire
29.0
29.0
29.0
30.0
30.0
29.0
28.00
27.00
28.00
Public Works
32.5
32.5
31.0
33.6
33.6
32.6
28.75
28.50
28.50
Parks and Recreation
26.0
25.5
26.0
26.0
21.0
21.4
24.38
19.17
19.56
Utilities
30.0
29.0
29.0
29.0
28.0
27.0
25.00
25.00
24.00
Stormwater
5.0
7.0
7.0
7.0
7.0
7.0
7.00
5.00
4.00
Golf Course
40.0
38.0
41.0
43.0
44.3
44.3
43.00
40.43
39.14
2.5
249.8
2.5
248.8
3.0
253.3
3.3
261.6
3.3
259.2
4.0
254.6
4.00
245.13
5.68
233.93
5.35
233.65
Metered Parking
Totals
Source:
Notes:
City Finance and Personnel Departments
Refers to the number of personnel authorized for an accounting period, including part-time
personnel converted to the decimal equivalent of a full-time position based on 2,080 hours
per year. For example, a part-time recreation aide working twenty (20) hours per week for
fifty-two (52) weeks a year equals one half (.5) of a full-time position. Elected officials are carried
as General Government employees for payroll purposes, but are excluded from the figures above.
110
Table E-2
Last Ten Years
Function/Program
Police
Physical arrests
Parking violations
Traffic violations
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
828
6,585
6,791
1,155
6,436
6,000
1,141
6,512
5,580
1,187
4,498
6,279
1,299
4,629
7,495
1,522
5,945
7,590
1,253
6,819
6,466
1,215
7,059
5,469
822
5,405
4,863
801
5,529
3,798
2,073
55
273
2,114
78
281
2,241
75
254
2,191
57
391
1,596
151
382
2,373
65
281
1,648
63
316
2,184
63
504
2,149
46
323
2,513
62
206
14
-
306
-
5
104
200,000
150
253,397
150
-
115
-
100
-
1,150
-
126
530,109
1.3
243
-
4,152
16,656
2,568
15,112
2,455
14,765
2,562
14,390
2,836
14,704
3,014
19,731
2,668
20,124
2,621
19,624
2,158
19,003
2,542
22,627
Water
Total Metered Connections*
Average daily consumption
(thousands of gallons)
4,569
1,954
4,603
1,923
4,604
1,949
4,614
1,851
4,648
1,872
4,535
1,849
4,545
2,116
4,526
2,136
4,507
1,902
4,518
1,913
Wastewater
Average daily sewage treatment **
(thousands of gallons)
3,608
3,451
3,435
3,555
3,650
3,170
4,000
3,208
3,368
4,037
Fire
Emergency responses
Fires extinguished
Inspections
Public Works
Street resurfacing (miles)
Pothole Repair/Patching (square yards)
Asphalt Rejuvenation (square yards)
Attendees at Gym
Pool Attendees
Notes: Refuse collection - Contracted out
Library - County provided
Transit - County provided
* Excludes Patrick AFB
** Includes Patrick AFB
Sources: Data provided by City of Cocoa Water Sewer Distribution Report
Water data provided by City of Cocoa
Wastewater data provided by City of Cocoa Beach
111
Table E-3
Function/Program
Schools*
Elementary
Junior/Senior High
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
Police
Stations
Police Officers**
1
36
1
37
1
35
1
37
1
36
1
35
1
37
1
33
1
37
1
34
Fire
Stations
Firefighters
2
28
2
28
2
26
2
28
2
28
2
28
2
28
2
27
2
27
2
27
35
1,265
35
1,265
35
1,265
35
1,265
35
1,265
35
1,265
35
1,265
35
1,265
35
1,265
35
1265
Parks & Playgrounds***
Golf Course (27 holes)
Tennis courts (2 clay)
Swimming pools (1 adult ;1 children)
Maritime Hammock Preserve****
Skateboard park
12
1
12
2
-
12
1
12
2
-
12
1
12
2
1
-
12
1
12
2
1
1
12
1
12
2
1
1
12
1
12
2
1
1
12
1
12
2
1
1
12
1
12
2
1
1
12
1
12
2
1
1
12
1
12
2
1
1
Utilities
Wastewater
Sanitary sewers (miles)
Storm sewers (miles)
64
18
64
18
64
18
64
18
64
18
64
18
64
18
64
18
64
22
64
22
Electricity
Meter Connections
*****
*****
*****
*****
10,390
10,230
10,122
10,120
10,121
Other Public Works
Streets (linear miles)
Streetlights
Notes:
*
**
***
****
*****
Schools owned & operated by Brevard County School Board
Sworn officers
City and County parks in City limits
Purchased 5.4 acres unimproved land in November 2003
Figures unavailable
112
10,341
114
122
126
Excellent Recreation and Quality Living
www.CityofCocoaBeach.com

City of Cocoa Beach, Florida

Transcription

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