6-27-16 Amended Agenda Packet
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CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
June 27, 2016 - 6:30 PM
AMENDED AGENDA
Invocation and pledge to the flag
Call to order
1. A. Approve the minutes of the Commission Meeting of June 13, 2016.
2. Courtesy of Floor to Visitors
*A. 2015 Audit Report - Ron Whitesides with Purvis, Gray & Company
3. Unfinished Business from Previous Meetings
A. Public Hearing - Waiver Request #16-SAFW-97 (535 Atlantic Boulevard)
*B. Purchase of 54 East Coast Drive
*C. Automation of Gates at Dutton Island and Tideview Parks
4. Consent Agenda
ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE
ROUTINE BY THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN
THE FORM LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE
ITEMS. IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE
CONSENT AGENDA AND WILL BE CONSIDERED SEPARATELY. SUPPORTING
DOCUMENTATION AND STAFF RECOMMENDATIONS HAVE BEEN PREVIOUSLY
SUBMITTED TO THE CITY COMMISSION ON THESE ITEMS.
A. Acknowledge receipt of the Monthly Finance Report for May 2016.
B. Approve the Interlocal Agreement for Use of Property Tax Collections to Fund Exemption
Audit Services among the Duval County Property Appraiser, Duval County Tax Collector,
and the City of Atlantic Beach and authorize the Mayor, City Manager and City Clerk to
sign the agreement.
5. Committee Reports
None.
6. Action on Resolutions
None.
7. Action on Ordinances
A. ORDINANCE NO. 20-16-138, Public Hearing and Final Reading
AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC
BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2015 AND ENDING
SEPTEMBER 30, 2016, AND PROVIDING AN EFFECTIVE DATE.
8. Miscellaneous Business (Discussion only)
*A. Safe Routes to Schools Route Selection
B. Review of Land Development Regulations (Commissioner Stinson)
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9. City Manager
*A. 90-Day Calendar (July 2016 through September 2016)
10. Reports and/or requests from City Commissioners and City Attorney
Adjournment
Please Note: This meeting will be live-streamed and videotaped and can be accessed by clicking on the
Commission Meeting Video tab located on the home page of the City’s website at www.coab.us.
If any person decides to appeal any decision made by the City Commission with respect to any matter considered at
any meeting, such person may need a record of the proceedings, and, for such purpose, may need to ensure that a
verbatim record of the proceedings is made, which record shall include the testimony and evidence upon which the
appeal is to be based.
Any person wishing to speak to the City Commission on any matter at this meeting should submit a request to the
City Clerk prior to the meeting. For your convenience, forms for this purpose are available at the entrance to the
Commission Chambers.
Every effort is made to indicate what action the City Commission is expected to take on each agenda item.
However, the City Commission may act upon any agenda subject, regardless of how the matter is stated on the
agenda.
In accordance with the Americans with Disabilities Act and Section 286.26, Florida Statutes, persons with
disabilities needing special accommodation to participate in this meeting should contact the City Clerk by 5:00 PM,
Friday, June 24, 2016.
_____________________________________________________________________________________________
* The backup documents for the following agenda items were amended on 6/22/16:
Item 2A- Audit Report was added.
Item 3B- Additional documents were added.
Item 3C- Staff Report was updated.
Item 8A- Staff Report was updated and the slide presentation was added.
IN ATTENDANCE:
MINUTES
REGULAR CITY COMMISSION MEETING
June 13, 2016
CITY HALL, 800 SEMINOLE ROAD
AGENDA ITEM lA
JUNE 27, 2016
Mayor Mitchell E. Reeves
Commissioner Jimmy Hill
Commissioner M. Blythe Waters
City Attorney Brenna Durden
City Manager Nelson VanLiere
City Clerk Donna L. Bartle
ABSENT:
Commissioner John Stinson (excused)
Commissioner Harding (excused)
Invocation and pledge to the flag
Mayor Reeves paused for a moment of silence for the victims and families of the incident that occmTed
in Orlando over the weekend, and led the Pledge of Allegiance to the Flag.
Call to Order:
Mayor Reeves called the meeting to order at 6:32 p.m. City Clerk Bartle called the roll and Mayor
Reeves noted that a quorum was present. He explained Commissioners Harding and Stinson have
excused absences by the Chair.
Mayor Reeves reported that he would be moving Item 8A up to have a presentation from Jerry Holland
before the Courtesy of Floor and at the request of Commissioner Stinson through the City Clerk, Item
SC will be postponed until our next meeting on June 27, 2016.
1. A. Approve the minutes of the Commission Meeting of May 23, 2016.
Mayor Reeves asked if there were any corrections to the above minutes. There were no corrections, so
Mayor Reeves stated the minutes stand as submitted.
8. Miscellaneous Business (Discussion only)
A. Interlocal Agreement for Use of Property Tax Collections to Fund Exemption Audit
Services among the Duval County Property Appraiser, Duval County Tax
Collector, and the City of Atlantic Beach.
Jerry Holland, Duval County Property Appraiser, explained his request for the agreement with the
various taxing authorities, the process for investigating homestead exemption fraud, the importance of
identifying it, the impact it has on the taxing authorities and the penalties involved. He distributed two
handouts and reported comparisons from the last 11 months to the prior 11 months. He answered
questions from the Commission.
June 13, 2016 REGULAR COMMISSION MEETING
AGENDA ITEM lA
JUNE 27, 2016
Page2
City Attomey Brenna Durden explained there are slight revisions needed in paragraph 4. Mr. Holland
explained the latest agreement had the school district's fiscal year of July 1, but since the City of
Atlantic Beach's fiscal year is October 1, the agreement would need revisions. Ms. Durden reported the
two areas in paragraph 4 that have the incorrect date of July 1 should be revised to October 1.
Motion: To move forward with the agreement with the changes that the City Attorney referenced.
Moved by Hill, Seconded by Waters
Commissioner Hill expressed concerns about liening citizens and asked for some explanation of
protections built in, how it is mitigated and what efforts are made before putting a lien on the property.
Jerry Holland emphasized that no one who has the right for a homestead will be liened because these
properties are someone's second, third or fourth home. He explained how the Tax Collector works with
homeowners on payment plans if needed and reported that of the 524 liens this year, none have been
contested. He stated no one will be evicted from their homes; the liens are placed because state law says
that if the person is not entitled to it, he must lien them, lien them for the back taxes and lien them for
the penalty and interest. He fmiher stated the law does not give him the right to waive it; once he has
identified it by state law, he must place the lien on there. He reiterated that the Tax Collector will work
with the property owner.
Mayor Reeves asked what would happen if Atlantic Beach voted it down. Jerry Holland stated they
would not give (the third patiy vendor) any homesteads in Atlantic Beach and Atlantic Beach would not
get the benefit of it since they m·e not paying for it. He added, the school district and anyone else would
not get the benefit of those homesteads and believes it would send a message that Atlantic Beach is not
concemed if someone cheats on the exemption.
Mayor Reeves clarified that it has nothing to do with Atlantic Beach residents filing their homestead
exemptions; it just has to do with Atlantic Beach not getting turned over to the third party for research.
Mr. Holland stated his staff will continue doing what they do by using the current process, but, the key
is, they (the third party vendor) have the extra data base they can look through which is beneficial.
Mr. Reeves questioned the lien process. Mr. Holland explained they do not place a lien without the
homeowner knowing it and they communicate constantly to make sure their evidence is correct and the
taxpayer agrees with it.
Commissioner Hill asked questions regarding the restrictions and controls they will have over the
company providing the service to ensure they use proper customer service. Mr. Holland answered they
will not be a collection agency; they will be a research firm that will find data and bring it to his office
so that his office can contact the taxpayer. He stated the vendor will not have anything to do with the
collection, filing the lien or contacting the taxpayer.
Mayor Reeves asked for consensus rather than a motion to move the item forward. There was
consensus to move the item forward to the meeting on June 27,2016.
1. B. Approve the minutes of the Gate Petroleum Appeal Hearing of May 12,
2016.
Mayor Reeves asked if there were any corrections to the above minutes. There were no corrections, so
Mayor Reeves stated the minutes stand as submitted.
June 13, 2016 REGULAR COMMISSION MEETING
2. Courtesy of the Floor to Visitors
AGENDA ITEM lA
JUNE 27, 2016
A. Presentation of check to Beaches Resource Center Foundation.
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Mayor Reeves explained how the City helps various organizations and the Commission wanting to
recognize them by presenting the checks at meetings. Timmy Johnson, on behalf of the City of Atlantic
Beach and the Cultural Arts and Recreation Advisory Committee, presented a check to Board President,
Samantha De Carlo in the amount of $2,000 for the Beaches Resource Center Foundation for their
services to the kids in the beaches area.
Samantha De Carlo, 2790 Chesterbrook Ct., Board President of the Beaches Resource Center.
Foundation, explained the programs they offer to youths from Atlantic Beach, Neptune Beach and
Jacksonville Beach including counseling services, intervention programs, and group counseling. She
reported that with the $2,000 check, they will be able to serve an additional 30 to 40 students a year
which is 30 to 40 students more than any of the other full service sites and will be able to offer anywhere
fi·om 5 to 10 additional counseling groups. She expressed her appreciation for the contribution stating
the funds will be well spent on the children of Atlantic Beach.
Commissioner Hill explained there is a Board (Committee) that takes requests and recommends which
organizations and programs the City should help fund. Mayor Reeves reminded everyone that the 2016-
2017 budget is coming up and to contact Timmy Johnson as soon as possible with any request for
funding programs.
Mayor Reeves explained the process for public comments and opened the Courtesy of the Floor to
Visitors. City Clerk Bartle called each speaker to the podium.
Stephen Fouraker, 387 6th Street, expressed his disappointment with the Commission regarding their
decision on the Gate station and explained the efforts to overturn that decision will be continued in the
legal realm. He refened to Maria Mark's remarks on Governor Peterson pushing through a bill in
Delaware legislature which was trying to stop the intense industrial development of the Delaware
Coastline, speaking to his courage, and he wish he would have seen some of this courage from our
Commissioners. He believed each of the Commissioners had an opportunity to stand up for the citizens
and asked who will have the courage to introduce an ordinance banning future gas stations in Atlantic
Beach.
Maria Mark, 1148 Linkside Drive, spoke in opposition to the City Manager's proposal to buy property
across from Al's Pizza to use for parking at a cost of $1.2 million dollars. She expressed her concerns
that this is not being fiscally responsible. She agreed that parking is a major issue, but does not believe
it should be solved by one entity. She offered suggestions on other ways to help with parking that would
better serve Atlantic Beach and the beaches commu:q.ity. She refened to the minutes of the Gate Appeal
hearing and explained she did not come out in support of the Gate development, but rather she was
trying to propose a compromise in the hearing. She congratulated Mr. Van Liere for his daughter,
Danielle, for finishing first in her class.
Chris Jorgensen, 92 W. 3rd St., explained that events such as the Boston Marathon bombing and
Orlando (shootings) make people believe conspiracy theories are credible. He thanked the Commission
for the Gate Hearing and the Commission and the Board for the Cloister Hearing for allowing the
June 13, 2016 REGULAR COMMISSION MEETING
AGENDA ITEM lA
JUNE 27, 2016
Page4
opportunity for every individual to have their voices be heard. He stated he believes the CRA is not
necessary for the City. He spoke about the Memorial Day ceremonies in Atlantic Beach. He expressed
environmental concerns affected by weakening magnetic poles.
Susanne Barker, 1938 Beachside Ct., spoke about the Gate meeting. She referred to and responded to
the comments made at the last meeting by Mayor Reeves regarding there being no evidence presented
from the citizens/appellants. She explained the hearing was their evidence when their attorney presented
the facts about the Codes and about how you must first think about neighborhoods before permitting
anything. She spoke in opposition of the waivers and urged the Commission to listen to the citizens
before they vote. She also spoke in opposition to the proposal to purchase property to build a parking lot
to alleviate parking at the Town Center with the citizens of Atlantic Beach getting stuck with the bill.
Steve Piscitelli, 374 Magnolia St., spoke about his past service on the Cultural Arts and Recreation
Advisory Committee and explained the history of Acoustic Night and Songwriters' Concert and their
popularity. He presented a photograph taken on the first night of the Acoustic Night event in June of
2003 and thanked current and past Commissions for continuing to support these events.
Mike Whalen, 1420 Mayport Rd., stated he is a small business man and believes in government for the
people and by the people. He gave examples of recent projects as he expressed his concerns about City
government being intimidated by threats of a lawsuit and rolling over every time there is a major project
for big developers with no small businesses intended.
Joan McLoud, 176 Magnolia St., spoke on the Saltair subdivision drainage project and how there are
now safety concerns with standing water and the risk of children falling into or down the ditches. She
believes it was a mistake and the project was cut short. She urged the Commission to visit the
neighborhood to get a better understanding of the problems and have the problems addressed. She
·presented pictures to show what has been going on there.
Barry Adeeb, 501 Atlantic Blvd., spoke about Gate Petroleum and responded to a statement Mayor
Reeves made at the last meeting regarding the evidence submitted for the hearing. He explained and
identified 4 documents from the binder that he believes are the only documents that were ever needed.
He stated the Beach Diner is going to stand with the citizens of this community and reported they will
file an appeal and a separate lawsuit, which he has never done in his life.
City Clerk Bartle read the names and comments from the citizens who did not want to speak, as follows:
Jess and Mary Edgar, 76 East Coast Dr., did not speak, but were in support of Item 8B on the
Agenda.
No one else from the audience spoke so the Mayor closed the Comiesy of the Floor to visitors.
3. Unfinished Business from Previous Meetings
A. Waiver Request #16-SAFW-97 (535 Atlantic Boulevard)
Mayor Reeves explained the waiver was a result of the Gate Appeal hearing and reminded everyone that
nine of the ten modifications addressed changes the residents asked for.
June 13, 2016 REGULAR COMMISSION MEETING
AGENDA ITEM lA
JUNE 27,2016
Page 5
Ms. Durden explained the process for addressing waiver requests and stated this item is on the agenda
tonight for discussion purposes only. She explained these 2 waiver requests did come out of the Gate
Appeal Hearing and they were initiated due to the desire of the Commission to allow for 30 parking
spaces for the Beach Diner. She frniher explained Gate Petroleum stated they would be willing to
provide the 30 spaces but they would need to request two waivers; one for the amount of impervious
smface and one for landscaping. She explained that the impervious surface for Commercial Districts is
limited to 70%; at the hearing they said they would like for the Order of the the Commission to allow for
up to 78%; they have had the opportunity to review their plans and they have determined that they are
confident that they will be able to provide the 30 parking spaces and allow up to 75% as opposed to
78%. She stated the second waiver is for landscaping and the request was to delete the terminal tree
islands that are required by the parking code for parking lots from four ( 4) locations on the site. She
stated the Code provides that the City Commission does have the authority to provide waivers for any
provision in the Code and believes that this is what is before you tonight for discussion purposes only.
Motion: Hold a public hearing on June 27, 2016 at 6:30 p.m. to approve the waivers.
Moved by Hill, Seconded by Waters
Commissioner Hill stated he looks forward to the discussion at the next meeting.
Mayor Reeves stated on May 12th we as a Commission made a commitment and we are going to stick
with our commitment and move forward.
Roll Call Votes:
Aye: 3-Hill, Waters, Reeves
Nay: 0
MOTION CARRIED
Mayor Reeves explained the public hearing will be held on June 27, 2016 and invited everyone to come
back on that date with any open comments about this waiver.
4. Consent Agenda
ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE
ROUTINE BY THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN
THE FORM LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE
ITEMS. IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE
CONSENT AGENDA AND WILL BE CONSIDERED SEPARATELY. SUPPORTING
DOCUMENTATION AND STAFF RECOMMENDATIONS HAVE BEEN PREVIOUSLY
SUBMITTED TO THE CITY COMMISSION ON THESE ITEMS.
A. Acknowledge receipt of the Monthly Financial Report for April 2016 and Public
Worl{S Status Report for June 2016.
B. Designate Mayor Mitchell E. Reeves as the Voting Deleg~te for the 90th Annual
FLC Conference in Hollywood, Florida on August 18-20, 2016.
Mayor Reeves explained the Consent Agenda and asked if any Commissioner wanted to pull an item to
discuss. No items were pulled fi·om the Consent Agenda for discussion.
Motion: Approve Consent Agenda as stated.
Moved by Reeves (No second was requested.)
June 13, 2016
Votes:
Aye: 3-Waters, Hill, Reeves
Nay: 0
MOTION CARRIED
5. Committee Reports
REGULAR COMMISSION MEETING
AGENDA ITEM lA
JUNE 27,2016
A. Appointments to the Cultural Arts and Recreation Advisory Committee.
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Mayor Reeves explained that Commissioner Stinson made contact with the City Clerk and the City
Clerk will share his thoughts. City Clerk Bartle reported that the Board Member Review Committee
met on April28, 2016 to address membership on the Cultural Arts and Recreation Advisory Committee
and made recommendations for six upcoming vacancies. She stated Commissioner Stinson is requesting
that the Commission take action on five of those six vacancies tonight as follows: Reappoint Grant
Healy, Pamela White and Jay Wilson to the Cultural Arts and Recreation Advisory Committee for an
additional term beginning July 9, 2016 and ending July 8, 2018 and appoint Beverly Norman and Dawn
Pope to the Cultural Arts and Recreation Advisory Committee for the terms beginning July 9, 2016 and
ending July 8, 2018.
Mayor Reeves recognized Dawn Pope in the audience.
Motion: Reappoint Grant Healy, Pamela White and Jay Wilson to the Cultural Arts and
Recreation Advisory Committee for an additional term beginning July 9, 2016 and ending July 8,
2018 and appoint Beverly Norman and Dawn Pope to the Cultural Arts and Recreation Advisory
Committee for the terms beginning July 9, 2016 and ending July 8, 2018.
Moved by Hill, Seconded by Waters
There being no discussion, Mayor Reeves called for a vote.
Votes:
Aye: 3-Hill, Waters, Reeves
Nay: 0
MOTION CARRIED
B. Actuarial Valuation Report for General Employees' Retirement System.
Finance Director Russell Caffey summarized the General Employees' report on behalf of the Pension
Board, highlighting the plans membership, actuarial accrued liability, value of the plans assets, funded
ratio, unfunded liability balance, next yeax' s contribution, and the estimated rate of return. Mr. Van
Liere explained that every year the Pension Boards hire an Actuary to do a valuation and the purpose is
to tell the City what their commitment is to fund our pension plans. He explained how the assumption
rates affect the data and are chosen by the Pension Boards. He further explained the Pension Boards
determine the interest rates, but the Actuary has input on mortality rates, turnover rates, and raises in
salaries and they prepare information as a result of this activity to give to our auditors to include in the
Financial Statements. Mr. Caffey reported that the funded ratio for this plan is 76% which was
consistent with last year; the City's Contribution to the plan increased $63,000 over last year; and for
June 13, 2016 REGULAR COMMISSION MEETING
AGENDA ITEM lA
JUNE 27, 2016
Page7
every employee, the normal cost is 12.5% of their salary which goes into the Pension Plan. He added,
this plan is closed and in ten years it will be fully funded, every year moving forward the unfunded
liability will drop around $500,000 assuming there are no other changes and assuming we make the 7%
which is the plans assumed rate of retum.
Commissioner Waters expressed concems about the risks involved in having a relatively small plan and
expressed interest in looking at ways to decrease the risk to the City. Discussion ensued and Mr. Caffey
and Mr. Van Liere answered questions from the Commission.
Commissioner Waters reiterated her interest in looking at ways to decrease the risk to the City and
ensuring the employees' pension. Mayor Reeves agreed we need to look into other options including
the State Retirement. Mr. Caffey stated we can look into all options and provide a cost benefit analysis.
C. Actuarial Valuation Report for Police Officers' Retirement System.
Finance Director Russell Caffey summarized the Police Officers' report on behalf of the Pension Board,
highlighting the plans membership, actuarial accrued liability, actuarial value, funded ratio, unfunded
liability balance, next year's contribution, and the estimated rate of return. Mr. Caffey reported that the
funded ratio for this plan is 67% with an unfunded liability of $4.3 million dollars and the City's
Contribution to the plan increased $23,000 over last year.
Mayor Reeves called for a break at 8:02p.m. and reconvened at 8:08p.m.
6. Action on Resolutions
None.
7. Action on Ordinances
A. ORDINANCE NO. 20-16-138, Introduction and First Reading
AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF
ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1,
2015 AND ENDING SEPTEMBER 30, 2016, AND PROVIDING AN EFFECTIVE
DATE.
City Clerk Bartle read the Ordinance by title. City Manager Van Liere explained the Ordinance.
Motion: Approve Ordinance No. 20-16-138 as read.
Moved by Waters, Seconded by Hill
Discussion ensued. Mr. Van Liere and Ms. Durden answered questions from the Commission. There
was a consensus to direct the City Attorney and City Manager to provide the Commission with an
answer to whether or not the insurance would .cover the legal costs if there is an appeal filed against the
decision on Gate.
Mayor Reeves reported that the public hearing will be held on June 27, 2016.
June 13, 2016
Votes:
Aye: 3-Hill, Waters, Reeves
Nay: 0
MOTION CARRIED
REGULAR COMMISSION MEETING
8. Miscellaneous Business (Discussion only)
AGENDA ITEM lA
JUNE 27, 2016
Page 8
A. Interlocal Agreement for Use of Property Tax Collections to Fund Exemption Audit
Services among the Duval County Property Appraiser, Duval County Tax
Collector, and the City of Atlantic Beach.
This item was taken out of order and acted on earlier in the meeting.
B. Purchase of 54 East Coast Drive.
City Manager Van Liere explained he put this on the agenda in order to get feedback fi:om the
Commission and the public. He explained the details in his staff report and asked for guidance on
whether to proceed.
Mayor Reeves explained the background on this item and asked for comments fi:om the Commission.
Commissioner Hill expressed his concems about the issue stating he does not believe it is the City's role
to solve businesses' parking issues by itself, but may be interested in a partnership as long as it pays for
itself and benefits the citizens. Commissioner Waters stated the biggest concem the citizens have is the
cost and a push to look for a public-private partnership. She urged citizens to voice their concems or
support at the next Commission meeting. Mayor Reeves explained his big concem is the cost being $1.2
million. Discussion ensued.
It was the consensus of the Commission to move this forward to the next agenda, but stressed it is
not an endorsement.
Further discussion ensued. Mayor Reeves requested that the City Manager provide the Commission
with a long-term plan about the $1.2 million along with facts regarding the parking lot, parking
machines, the amount of trees to be saved, and the fencing. Commissioner Hill agreed that the
information will be key at the next meeting.
Mayor Reeves reiterated that moving this item forward is not to be taken as an endorsement and
he asked for consensus again. It was the consensus of the Commission to move this item forward
to the next meeting.
C. Review of Land Development Regulations.
This item was postponed to the next meeting on June 27, 2016.
9. City Manager
A. City Manager's Report.
• 90-Day Calendar (June 2016 through August 2016).
June 13,2016 REGULAR COMMISSION MEETING
AGENDA ITEM 1A
JUNE 27, 2016
Page9
Mr. Van Liere reported on upcoming items on the calendar: Groundbreaking Ceremony for the Public
Safety Building on Friday, June 17, 2016; Commission Workshop on June 27, 2016 at 5 p.m. on the
Safe Routes to School project; and Town Hall meeting on July 16, 2016.
He repmied on receiving the value of our City from the property tax appraiser, stating this is the first
chance we get to look at how the values of the City are changing for setting our millage rate; and the
overall taxable value went up 9 112 %.
10. Reports and/or requests from City Commissioners and City Attorney
Commissioner Hill
• Commented on misinformation that continues to come up from citizens regarding the Gate
station. He shared his frustrations, stating that he is tired of being dragged in the middle of a
dispute between a tenant and a landlord; the City Commission had no intent but to stay inside the
law and to do what the law allowed for all pmiies.
• Addressed the Saltair project, stating it is a safety hazard and needs to be fixed immediately. He
asked that it either be an agenda item or have a report from the City Manager at the next meeting
explaining how we are addressing the changes that we made. He stated we did not create swales;
we created dirt bottom ditches which are not acceptable for that neighborhood.
• Stated he would like the City Manager to trim staff in the areas where we have duplication of
staff, explaining that he knows there are people that are project-based that m·e assigned to
projects and his concern is where staff is retired and comes back to help us with long-term
projects and he does not want them to be tagged to the project; once we replace them with staff,
he wants those positions trimmed out; that is where we can get some of our savings back; and we
cannot tie our temporary help to capital improvement projects. He asked for those adjustments
to be made as soon as possible.
• Asked that the footprint for the Public Safety building construction area be scaled back, stating
he is mostly concerned about the area near the park. Mr. VanLiere and Chief Deal responded
and agreed to look into it further. Discussion ensued about safety and parking. Mr. Van Liere
asked about temporarily allowing baseball people to park along Plaza under the trees. The
Commission decided to leave it up to the Police Chief to make that decision. Mayor Reeves
asked that Commissioners get with the Police Chief with their concerns about this topic.
• Spoke about the Gate situation and how it is disturbing that a prior Commissioner speaking out
about it had multiple opportunities to make changes to the Code, but did not, which is part of the
problem.
Commissioner Waters
• Congratulated Acoustic Night on their 13 years and thanked Timmy Johnson, his staff, and the
Community members for the hard work they put in to make programs great for our citizens.
• Appreciated the moment of silence given for the Orlando victims and explained the importance
of being kind when communicating with fellow citizens. She stated that instead of threatening
retribution, it would be helpful if citizens worked with Commissioners to affect change that they
want to see happen in the ways that we can. She explained that when she met with groups, she
offered to work with them to do what we could do legally and has yet to have anyone take her up
on that offer, but will ask them again when it comes time to rewrite Code. She urged citizens to
fmd a way to work with the Commission on changes they would like to see happen.
City Attorney Durden
• Repmied an update on the accident on the beach involving the two ladies, stating
AGENDA ITEM lA
JUNE 27, 2016
June 13,2016 REGULAR COMMISSION MEETING Page 10
the City has received notices pursuant to F.S. 768.28; they have been forwarded to the insurance
canier and the insurance company has accepted obligation to defend those likely lawsuits.
• Confirmed that on Gate, the 30-day appeal period does end on Friday, June 17, 2016.
• Confi1med that on the Cloister, the Code Enforcement made their decision and a Final Order was
executed on June 6, 2016 by the Chairman; that is a 30-day appeal period also, so if there is any
challenge to that, it would be by July 6, 2016. She explained that our Code does allow for a
Rehearing, but changed circumstances would have to exist. She reported that Mr. Eakin inquired
about the process that would be required to allow for the gate to be utilized for any non-
emergency services and Jeremy Hubsch provide the information to Mr. Eakin.
• Reported the Fleet Landing closing has been extended, potentially until the middle of July.
• Reminded the Commission of the July 1 reporting deadline for the Financial Disclosures (Form
1) and also about the annual training and offered to help with getting them information if needed.
Mayor Reeves asked Ms. Durden to confirm the date the Cloister has before fines start. Ms.
Durden explained they have 10 days from June 6, 2016. Ms. Durden explained the information
they provided to Mr. Eakin was in regards to the modification to the PUD, stating initially it is a two public hearing process; the first public hearing would be at the Community Development
Board, but ultimately it is a decision by the City Commission.
Mayor Reeves
• Followed up on Commissioners Hill and Waters comments, explaining he understands
everyone's frustrations, but wants them to understand the Commission's. He explained that this
Commission is willing to move forward and do what other Commissions before did not do which
is reevaluate zoning. He explained that appealing to the Circuit Court is not a threat; it is part of
our system and they have every right to do that. He believes that this Commission is not getting
any credit for what they did for the fourteen hours, but they committed to do things and are
following through. He clarified what point he was trying to make at the last meeting when he
showed the stack of information provided to him by City staff and the City Attorney to study
before the hearing, but nothing was given from the other side prior to the hearing. He explained
he would have preferred to have something to study, so that they were not just listening to facts,
but have a chance to research them and look them up.
• Spoke about his and Mr. Jacobovitz's visit to Saltair, noting that Mr. Jacobovitz agreed to meet
with citizens one-on-one. Mayor Reeves stated we have a Public Works Director that is willing
to do something about it and thanked him.
• Announced that the Florida League of Cities meeting is in Orange Park this week.
• Thanked ChiefDeal, his department and Public Works staff for the great job they did last week
in moving the department.
Commissioner Hill reiterated points made earlier about the Gate station and stated no one needs
to be personal about it because nothing we have done is personal and to make it personal is
unnecessary; we did what we were in position to do by law.
• Mayor Reeves announced he attended Fletcher High School's graduation ceremony and
congratulated the City Manager on his daughter.
• Reported the story behind Walmart not moving to Neptune Beach, explaining that Neptune
Beach did not win and it cost them $95,000 to lose; they were just fortunate that the economy
bottomed out and they did not come.
June 13, 2016 REGULAR COMMISSION MEETING
Adjournment
AGENDA ITEM lA
JUNE 27, 2016
Page 11
There being no further discussion, Mayor Reeves declared the meeting adjourned at 9:19p.m.
ATTEST:
Donna L. Bartle, CMC
City Clerk
Mitchell E. Reeves ·
Mayor/Presiding Officer
DRAFT
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORT
CITY OF ATLANTIC BEACH, FLORIDA
!
SEPTEMBER 30, 2015
AMENDED ITEM 2A
JUNE 27, 2016
DRAFT
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORT
CITY OF ATLANTIC BEACH, FLORIDA
SEPTEMBER 30,2015
TABLE OF CONTENTS
Independent Auditors' Report. ..................................................................................................................... i-iii
Management's Discussion and Analysis .................................................................................................... iv-xi
Basic Financial Statements
Government-wide Financial Statements
Staten1ent of Net Position .......................................................................................................................... !
Statement of Activities ............................................................................................................................... 2
Fund Financial Statements
Balance Sheet-Governmental Funds ........................................................................................................ 3
Reconciliation of Balance Sheet of Governmental Funds to the
Statement of Net Position ....................................................................................................................... 4
Statement of Revenues, Expenditures, and Changes in Fund
Balances -Governmental Funds ............................................................................................................. 5
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Staten1ent of Activities ............................................................................................................................ 6
Statement ofNet Position-Proprietary Funds ...................................................................................... 7-8
Statement of Revenues, Expenses, and Changes in Net Position-
Proprietary Funds .............................................................................................................................. 9-10
Statement of Cash Flows -Proprietary Funds ................................................................................... 11-13
Statement of Fiduciary Net Position ........................................................................................................ 14
Statement of Changes in Fiduciary Net Position ..................................................................................... 15
Notes to Financial Statements ........................................................................................................ 16-44
Required Supplementary Information
General Employees' Pension Plan:
Schedule of Changes in Net Pension Liability and Related Ratios ....................................................... .45
Schedule of Contributions ........................................................................................................................ 46
Police Officers' Pension Plan:
Schedule of Changes in Net Pension Liability and Related Ratios ....................................................... .47
Schedule of Contributions ........................................................................................................................ 48
Other Postemployment Benefits Plan-Schedule of Funding Progress ...................................................... .49
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual-General Fund .................................................................................................... 50-51
Note to Schedule of Revenues, Expenditures, and Changes in Fund
Balances -Budget and Actual-General Fund ........................................................................................ 52
DRAFT
Supplementary Information
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORT
CITY OF ATLANTIC BEACH, FLORIDA
SEPTEMBER 30, 2015
TABLE OF CONTENTS
(Concluded)
Combining Balance Sheet-Nonmajor Governmental Funds ................................................................ 53-54
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances -Nonm~or Governmental Funds ......................................................................... 55-56
Combining Statement of Fiduciary Net Position .......................................................................................... 57
Combining Statement of Changes in Fiduciary Net Position ................................. , .................................... 58
Historical Revenues and Expenses ............................................................................................................... 59
Schedules ofNet Revenues in Accordance with Bond
Resolutions-Enterprise Funds (Water and Sewer) ................................................................................ 60
Other Bond Covenant Disclosures ................................................................................................................ 61
Other Statistical Information
Major Utility Customers ................................................................................................................................ 62
Additional Elements of Report Prepared in Accordance With
Government Auditing Standards, Issued by the Comptroller
General of the United States; the Rules oftlte Auditor General
of the State of Florida; and Other Contract Requirements
Schedule of Source and Expenditure of the City Grant Funds .............................................................. 63
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Basic Financial Statements Perfonned in Accordance
with Government Auditing Standards .......................................................................................... 64-65
Independent Accountants' Report on Compliance with
Section 218.415, Florida Statutes ...................................................................................................... 66
Management Letter ............................................................................................................................ 67-68
DRAFT
INDEPENDENT AUDITORS' REPORT
DRAFT
GPurvis
ray~
____________________ Co_m_· Qany
INDEPENDENT AUDITORS' REPORT
Honorable Mayor, City Commissioners, and
City Manager
Atlantic Beach, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Atlantic Beach,
Florida, (the City), as of and for the year ended September 30, 2015, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auqitor considers internal control relevant to the City's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Certified Public Accountants
P.O. Box 141270 • 222 N.E. 1st Street • Gainesville, Florida 32614-1270 • (352) 378-2461 • FAX (352) 378-2505
L<~urel Ridge Professional Center • 2347 S.E. 17th Street • Ocala, Florida 34471 • (352) 732-3872 ~ FAX (352) 732-0542
443 East College Avenue • Tallahassee, Florida 32301 • (850) 224-7144 • FAX (850) 224-1762
5001 Lakewood Ranch Blvd. N., Suite 101 • Sarasota, Florida 34240 • (941) 907-0350 • FAX (941) 907-0309
Mr:MBFRS Of AMf:RICAI\ AND rL0,11DA INSTITUTES Of CERTIFIW PUBLIC ACCOUNTANTS
M[MBER OF AM::RICAN 11\STITL;TF Or CERTIFifO PUBLIC ACCQUI\TANTS PRIVATF. COMPANIES Ai"O U.r::. PRJ\CTICE SECTI()I\$
DRAFT
Honorable Mayor, City Commissioners, and
City Manager
Atlantic Beach, Florida
INDEPENDENT AUDITORS' REPORT
(Continued)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund infonnation of the City, as of September 30, 2015, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 15 to the financial statements, during the current year, the City adopted
Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial
Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date. These statements require employers pa:tiicipating in defined
benefit pension plans to report the net pension liability and other pension related deferred inflows and
outflows related to these plans. In connection with the implementation of these statements, the City
decreased its beginning net position in the governmental activities by $4,529,366 and decreased
beginning net position in the business-type activities by $1,057,204. Our opinion is not modified with
respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and other required information on pages iv-xi and 45-52 be presented to
supplement the basic financial statements. Such infmmation, although not a part of the basic financial
statements, is required by GASB, who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the infonnation because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The supplementary information on pages 53-61, the other
statistical information section on page 62, and the schedule of expenditures of grant funds per the City of
Jacksonville's Ordinance Code Chapter l18.202(e) are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
ii
DRAFT
Honorable Mayor, City Commissioners, and
City Manager
Atlantic Beach, Florida
INDEPENDENT AUDITORS' REPORT
(Concluded)
Other Matters (Concluded)
Other Information (Concluded)
The supplementary information and schedule of expenditures of grant funds per the City of Jacksonville's
Ordinance Code Chapter 118.202(e) are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and ce1tain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
supplementary information and schedule of expenditures of grant funds per the City of Jacksonville's
Ordinance Code Chapter 118.202( e) are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
The other statistical information section has not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Govemment Auditing Standards
In accordance with Government Auditing Standards, we have issued our report dated , on our
consideration of the City's internal control over financial reporting and on our tests of its compliance with
ce1tain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit perfonned in accordance with
Government Auditing Standards in considering the City's internal control over financial reporting and
compliance.
Repol't on Summarized Comparative Information
We have previously audited the City's 2014 financial statements, and our report dated April 20, 2015,
expressed an unmodified opinion on those audited financial statements. In our opinion, the summarized
comparative information presented herein as of and for the year ended September 30, 2014, is consistent,
in all material respects, with the audited financial statements from which it was derived.
Gainesville, Florida
Ill
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
As management of the City of Atlantic Beach, Florida (the City), we offer readers of our financial
statements this narrative overview and analysis for the fiscal year ended September 30, 2015.
Overview of the Financial Statements
This management's discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's 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 repmt also contains other supplementary information in addition to the basic financial
statements themselves. The purpose of each of the three components of the basic financial statements is
described below.
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. They include the Statement ofNet Position
and the Statement of Activities.
The Statement of Net Position presents information on all of the City's assets, deferred outflows of
resources, liabilities, and deferred inflows of resources with the difference between reported as net position.
Net position is reported as one of three categories: invested in capital assets -net of related debt; restricted;
or unrestricted. Restricted net position is further classified as either net position restricted by enabling
legislation or net position that is otherwise restricted. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position ofthe City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods.
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues, referred to as "governmental activities," from other
functions that are intended to recover all or a significant portion oftheir costs through user fees and charges,
referred to as "business-type activities." The governmental activities ofthe City include public safety, road
maintenance and construction, parks and recreation, conservation and resource management, debt, and
general govemment, which include administration and other support functions. The business-type activities
of the City include the utility, comprised of the water and sewer systems, the stormwater system, the
sanitation service and the building code enforcement enterprise fund. The government-wide financial
statements can be found on pages 1 -2 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, 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 can be categorized into either governmental funds, proprietary funds, or fiduciary funds.
• Governmental Funds
Govemmental funds are used to account for essentially the same functions reported as govemmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-tem1 inflows and outflows of available
iv
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
(Continued)
Fund Financial Statements (Concluded)
• Governmental Funds (Concluded)
resources, as well as on balances of available resources at the end of the fiscal year. Such information
may be useful in evaluating a City'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. Reconciliations are
provided between the Governmental Funds Balance Sheet and the Statement of Net Position and the
Governmental Funds Statement ofRevenues, Expenditures, and Changes in Fund Balances and Statement
of Activities to facilitate this comparison between governmental funds and governmental activities.
The City maintains twelve individual governmental funds. Information is presented separately in the
Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balances for the General Fund, which is considered to be a major fund, Data from
the other eleven governmental funds are combined into a single, aggregated presentation called Nonmajor
Governmental Funds. Fund data for these nonmajor governmental funds is provided in the form of
combining statements. These combining statements can be found on pages 53 -58 of this report.
The City adopts an annual appropriated budget for all funds but is only required to present a budget
comparison for its General Fund. The Schedule ofRevenues, Expenditures, and Changes in Fund Balance
Budget and Actual-General Fund budgetary comparison schedule and notes on pages 50 -52 of this
report has been provided to demonstrate compliance with this budget.
• Proprietary Funds
The City maintains only one type of proprietary fund and that is enterprise funds. The enterprise funds
are used to account for the activities of the water and sewer (utility), stormwater, building code
enforcement and sanitation activities.
The proprietary fund financial statements provide the same type of information as the government-wide
financial statements, only in more detail. Separate infotmation of the utility, stormwater, sanitation and
building code enforcement activities can be found in the basic proprietary fund financial statements on
pages 7 -13 ofthis repmt.
• Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City (i.e.,
pension beneficiaries). Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support the City's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary
fund financial statements can be found on pages 14 -15 of this report.
Notes to Financial Statements
The notes to financial statements provide additional infotmation that is essential to a full understanding of the
data provided in the government -wide and fund financial statements. The notes begin on page 16 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information conceming the City's progress in funding its obligation to provide
pension benefits to its employees and a budgetary comparison schedule for the General Fund. Required
supplementary information can be found beginning on page 45 of this report.
v
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
(Continued)
Govemment-wide Financial Analysis
Net position may serve over time as a useful indicator of a City's financial position. As can be seen in the
summarized table below, the City's assets exceeded liabilities by $71,375,000 at the close of the fiscal year
ended September 30, 2015. During the year, the City's net financial position was negatively impacted by
the implementation of two GASB reporting changes. The City implemented GASB Statement No. 68,
Accounting and Financial Reporting for Pensions; and GASB Statement No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement Date. With the new reporting changes, the City is
allocated its proportionate share of the General Employee Pension Plan and the Police Pension Plan's net
pension assets, deferred outflows of resources, deferred inflows of resources, and pension expenses. A
restatement to record the effects of the new reporting guidance decreased beginning net position by
$4,529,000 in governmental activities and $1,057,000 in business type activities.
By far the largest portion of the City's net position, $58,936,000 (82%), reflects its investment in capital assets
(i.e., land, buildings, equipment, and inft·astructure), less any related, outstanding debt used to acquire those
assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City's investment in capital assets is reported net of related debt,
it should be noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
A portion of the City's net position, $4,765,000 (7%), represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $7,673,000
(11 %), is used to meet the government's ongoing obligations to citizens and creditors.
Current and other assets
Capital assets
Total Assets
Deferred Outflow
Long-term liabilities
outstanding
Other liabilities
Total Liabilities
Deferred Inflow
Net Position:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total Net Position
City of Atlantic Beach's Net Position
September 30, 2015 and 2014
(In Thousands)
Governmental Business-type
Activities Activities
2015 2014 2015 2014
$11,965 $11,345 $9,466 $8,362
39,542 39,215 39,607 41,190
51,507 50,560 49,073 49,552
2,993 0 2,083 1,187
8,374 503 22,235 21,504
707 638 2,924 2,774
9,081 1,141 25,159 24,278
40 0 0 0
39,542 39,214 19,394 20,758
3,883 4,004 883 798
1,954 6,201 5,720 4,905
$45,379 $49,419 $25,997 $26,461
vi
Totals
2015 2014
$21,431 $19,707
79,149 80,405
l 00,580 100,112
5,076 I, 187
30,609 22,007
3,631 3,412
34,240 25,419
40 0
58,936 59,972
4,766 4,802
7,674 11 '106
$71,376 $75,880
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
(Continued)
As illustrated in the schedule on page vi, the City was able to repmt positive balances in all categories of
net position, both for the government as a whole, as well as for its separate govemmental and business-type
activities. The same situation held true for the prior fiscal year.
City of Atlantic Beach's Change in Net Position
For the Years Ended September 30,2015 and 2014
(In Thousands)
Governmental Business-type
Activities Activities Totals
2015 2014 2015 2014 2015 2014
Revenues:
Program Revenues:
Charges for Services $1,739 $1,786 $11,114 $11,015 $12,853 $12,801
Operating Grants and
Contributions 642 627 0 0 642 627
Capital Grants and
Contributions 217 299 342 776 559 1,075
General Revenues:
Property Taxes 4,113 3,908 0 0 4,113 3,908
Sales Taxes 1,296 1,208 0 0 1,296 1,208
Business and Utility Taxes 1,109 1,136 0 0 1,109 1,136
State Revenue Sharing 322 300 0 0 322 300
Discretionary Sales Surtax 772 722 0 0 772 722
Investment Earnings (Loss) 3 313 (5) 213 (2) 526
Miscellaneous 53 64 0 0 53 64
Total Revenues 10,266 10,363 11,451 12,004 21,717 22,367
Expenses:
General Government 1,935 2,054 0 0 1,935 2,054
Public Safety 5,350 5,184 0 0 5,350 5,184
Road Maintenance and
Construction 1,771 1,872 0 0 1,771 1,872
Parks and Recreation 1,299 1,309 0 0 1,299 1,309
Interest/Fiscal Charges on
Long-term Debt 0 0 0 0 0 0
Utility 0 0 7,278 7,309 7,278 7,309
Stormwater 0 0 1,092 1,153 1,092 1,153
Sanitation 0 0 1,560 1,869 1,560 1,869
Building Code Enforcement 0 0 350 239 350 239
Total Expenses 10,355 10,419 10,280 10,570 20,635 20,989
Transfers 578 621 (578) (621} 0 0
Change in Net Position 489 565 593 813 1,082 1,378
Net position-Beginning
(As Restated) 44,890 48,854 25,404 25,648 70,294 74,502
Net Position-Ending $45,379 $49,419 $25,997 $26,461 $71,376 $75,880
vii
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
(Continued)
Fund Financial Analysis
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. Following is a summary of fund activity financial information for the fiscal year,
rounded to the nearest thousand dollars:
• Governmental Funds
At the end of the current fiscal year, the City's governmental funds reported a combined ending fund
balance of $11,449,000, an increase of $51 7,000 in comparison with the prior year.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the
unassigned fund balance was $4,633,000, which equated to 44% of total General Fund expenditures
without transfers. The net result of various revenue and expense items resulted in an increase to the City's
General Fund of $638,000 or 9% during the current fiscal. The expenditures of the General Fund were
lower than expected, mostly from unfilled positions.
Nonmajor governmental funds consisting of special revenue funds, the debt service fund, and the capital
projects fund have a combined fund balance of $3,890,000. Of this fund balance, $3,326,000 is
restricted for capital projects. The net decrease in fund balance after transfers in nonmajor
governmental funds was $121,000.
• Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. During the fiscal year the proprietary funds recorded revenues of
$11,020,000, expenses of$9,572,000, net non-operating costs of$( 619,000) and net capital contributions,
grants and transfers of $(236,000). The net position in the proprietary funds increased $592,000 as a
result of the fiscal year's activities. The unrestricted net position of the enterprise funds amounted to
$5,720,000 at the end of fiscal year 2015.
Stormwater rates stayed constant in Fiscal year 2015 as there were no rate changes. The $8.39 per ERU
is approximately 84%, compared to 79% for the prior year, of the total operating expenses of
$1,029,000 needed to fully fund the operation with charges for service.
During fiscal year 2015, the Sanitation Fund netted an increase in net position of $43,000.
General Fund Budgetary Highlights
The final expense budget included a $405,000 increase in appropriations. The portion ofthe increase in
appropriations for the encumbrances rolling forward from 2014 was $347,000.
Net Budget
The initial budget had a negative variance of $92,000 (page 50). The actual increase in fund balance was
$728,000. This resulted in a $820,000 excess variance above the original budget.
viii
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
(Continued)
Capital Assets and Debt Administration
Capital Assets-The City's investment in capital assets, net of related depreciation, for its governmental
and business-type activities as of September 30,2015, amounted to $79,149,000. This investment in capital
assets includes land, land improvements, land easements, buildings and infrastructure improvements,
equipment, and construction in progress.
The total change in the City's capital assets, net of related depreciation, for the current fiscal year was an
increase of $328,000 (.4%) for governmental activities and a dee1·ease of$1,583,000 (1.97%) for business-
type activities.
Capital asset events during the current fiscal year included the following:
• Governmental Activities
Buildings, net of accumulated depreciation, decreased by $36,000 through annual depreciation of the
capital assets.
Intangible Assets reflected a net increase of $31,000 through annual depreciation of the capital
assets. This asset category includes land easements and computer software.
Improvements Other Than Buildings reflected a net increase of $233,000. This represents capital
asset increase of $920,000, offset by depreciation of $687,000. Major projects in this category
include: Rose Park Development, Marsh Overlook and Kayak Launch, Francis Ave. drainage
improvements, improvements at Bull Park, and renovations at Russell Park.
Equipment reflected a net increase of$121,000. This represents capital asset increase of$414,000,
offset by depreciation of $293,000. Some of the assets acquired in this category were: new phone
system throughout the City, 3 police interceptors, 2 trailers, and computer hardware.
Constr~1ction in progress decreased $21,000. Major projects included in this category are the
Russell Park Renovation, Marsh Project Pedestrian Path, and the Robert Street ditch design.
• Business-type Activities
Buildings reflected a net decrease in asset value of $10,000 from depreciation.
Improvements Other Than Buildings reflected a net decrease of $2,049,000. This represents
capital asset increases of $167,000, offset by depreciation of $2,217,000. The largest increases in
this category are improvements were the reclaimed water plant project and Francis Avenue Drainage
drainage improvements.
Equipment reflected a net increase of $89,000. This represents capital asset increase of $176,000,
offset by depreciation of $88,000. Some of the assets acquired this year consisted of 4 vehicles being
utilized by the Public Works Department.
Construction in Progress had a net increase of $388,000, costs incurred were for design of Saltair
Sidewalk and Drainage Project and Seminole Streetscape.
ix
DRAFT
Land
Intangibles
Buildings
Improvements-Other
Equipment
Construction in Progress
Total
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
(Continued)
City of Atlantic Beach's Capital Assets
(Net of Depreciation)
(In Thousands)
Governmental Business-type
Activities Activities
2015 2014 2015 2014
$10,363 $10,363 $1,656 $1,656
38 7 214 215
2,599 2,635 70 80
25,151 24,918 36,577 38,626
994 874 529 440
397 418 560 173
$39,542 $39,215 $39,606 $41,190
Totals
2015 2014
$12,019 $12,019
252 222
2,669 2,715
61,728 63,544
1,523 1,314
957 591
$79,148 $80,405
Additional information on the City's capital assets can be found in Note 5 on pages 27-28 of this report.
Long-term Debt
At the end of the 2015 fiscal year, the City had total bonded debt outstanding of$20,213,000. This amount
was comprised of debt secured solely by specified revenue sources. A detailed listing of the City's debt
can be found in the table below.
City of Atlantic Beach's Outstanding Debt
September 30, 2015
Utilities System Revenue Bond, Series 2014
F.D.E.P. State Revolving Funds Loan, 2010
F.D.E.P. State Revolving Funds Loan, 2009
Total
(In Thousands)
Business-type
Activities
$12,881
628
6,704
$20,213
Debt service coverage calculations can be found on page 61. Additional information on the City's long-
term debt can be found in Note 6 on pages 28-31 of this report.
X
DRAFT
Revenue Highlights:
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
(Concluded)
• Total revenue for 2015 was $3,000 lower than 2014 revenue (page 2). Most2015 revenue sources were
higher than previous year with the exception of Investment Earnings which came in $524,000 higher
in 2014.
• The 2015 taxable propetiyvalues were about 6.18% higher than the 2014 values. The City Commission
voted to use the same rate of 3.3285 mills, instead of the roll-back rate of 3.1567. The purpose for
adopting the millage rate of 3.3285 was to maintain a level of ad valorem tax revenue sufficient to
maintain adequate funding for the existing level of services at the estimated cost and to continue to
maintain the City's infrastructure and adequate reserves. The final gross taxable property value was
$1,278,868,000. Ad valorem taxes of $4,113,000 represent 40% of the General Fund revenues for
2015.
• The 2015 Intergovernmental revenues of $1,749,000 make up 17.06% of general fund revenues. This
is an increase of $114,000 over 2014.
• The City's investment portfolio is valued at approximately $15,773,000 as of September 30,2015. The
investment showed a loss of$2,000 for the year, compared to a gain of$526,000 in the prior year. Over
the past five years, the City has recognized an overall investment earnings gain of $1,119,000.
Expenditure Highlights:
• Expenditures increased in current year by $143,000 when compared to prior year. This increase was a
result of a $543,000 increased investment in capital outlay being offset by decreases of $160,000 in
General Government and $136,000 in Road Maintenance and Construction.
• In 2015 a larger investment in the City's infrastructure resulted in capital expenditures increasing from
$893,000 in 2014 to $1,436,000 in 2015. The major projects in that were completed or started in 2015
were improvements at Bull Park, improvements at Russell Park, Francis A venue drainage improvements,
and Saltair drainage improvements.
• Transfers in 2015 represents the movement of funds from the Public Utility Funds and the Sanitation
Fund to the General Fund and the Half Cent Sales Tax Funds to a project fund. A transfer of $160,000
from the Gas Tax Fund to the General Fund helped fund street maintenance.
Requests for Information
The financial report is designed to provide a general overview of the City'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 financial information should be addressed to the City of Atlantic Beach, Finance
Director, 800 Seminole Road, Atlantic Beach, Florida 32233.
Russell Caffey
Director of Finance
XI
DRAFT
BASIC FINANCIAL STATEMENTS
These basic financial statements contain Government-wide Financial Statements, Fund Financial
Statements, and Notes to Financial Statements.
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015,
WITH COMPARATNE TOTALS FOR SEPTEMBER 30, 2014
2015
Governmental Business-type 2014
Activities Activities Totals Totals
Assets
Equity in Pooled Cash and Investments $ 10,945,323 $ 7,495,552 $ 18,440,875 $ 16,049,275
Receivables -Net 450 548,386 548,836 632,235
Due fi·om Other Governments 936,932 35,244 972,176 1,216,599
Inventories 20,827 12,827 33,654 42,197
Notes Receivable -Current 760 15,759 16,519 15,759
Restricted Assets:
Equity in Pooled Cash and Cash Equivalents 0 1,218,056 1,218,056 1,578,519
Capital Assets:
Land 10,363,002 1,656,018 12,019,020 12,019,020
Buildings 4,574,646 4,356,384 8,931,030 8,848,043
Improvements Other Than Buildings 40,075,877 79,512,656 119,588,533 118,501,652
Equipment 4,050,946 2,328,381 6,379,327 5,789,079
Intangibles -Easements and Computer Software 381,939 244,709 626,648 585,788
(Accumulated Depreciation and Amortization) (20,301, 137) ( 49,051 ,642) (69,352, 779) (65,929,677)
Construction in Progress 396,861 560,408 957,269 590,420
Prepaid Items 58,786 16,105 74,891 45,218
Notes Receivable-Noncurrent 1,520 124,426 125 946 127,828
Total Assets 51,506,732 49,073 269 100,580,001 100,111,955
Deferred Outflows of Resources-Noncurrent
Unamortized Refunding Loss 0 1,079,432 1,079,432 1,187,375
Pension Related 2,992,625 1,003,201 3,995,826 0
Total Assets and Deferred Outflows 54 499 357 51 155 902 105,655,259 101,299,330
Liabilities
Accounts Payable and Other Current Liabilities 491,380 375,992 867,372 1,477,509
Constn1ction Retainages Payable 0 24,819 24,819 56,696
Due to Other Governments 0 11,066 l1,066 10,194
Uneamed Revenue 22,017 178,289 200,306 187,875
Deposits 2,736 0 2,736 9,199
Compensated Absences -Current 191,157 68,035 259,192 334,127
Payable from Restricted Assets:
Current Portion of Bonds Payable 0 1,090,000 1,090,000 0
Current Portion of Loan Payable 0 336,895 336,895 286,174
Accrued Interest Payable 0 252,483 252,483 97,471
Customer Deposits 0 586,894 586,894 952,496
Noncurrent Liabilities:
Due in More Than One Year 0 19,865,122 19,865,122 21,332,540
Compensated Absences-Noncurrent 382,074 139,787 521,861 465,720
Other Postemployment I3enefits Obligation 178,501 59,798 238,299 208,681
Net Pension Liability 7,813,357 2,170,163 9,983,520 0
Total Liabilities 9,081,222 25,159,343 34,240,565 25,418,682
Deferred Inflow of Resources
Pension Related 39.827 0 39 827 0
Net Position
Net Investment in Captia1 Assets 39,542,134 19,394,329 58,936,463 59,972,986
Restricted for:
Renewal and Replacement 0 250,000 250,000 250,000
Debt Service 0 381,162 381,162 286,174
Public Safety 180,762 0 180,762 168,310
Road Maintenance and Construction 248,141 0 248,141 159,677
Other Capital Projects 3,325,789 0 3,325,789 3,588,843
Other Purposes 128,595 0 128,595 86,906
Building Code Enforcement 0 251,255 251,255 261,288
Unrestricted 1,952 887 5.719,813 7 672,700 11,106,464
Total Net Position $ 45.378 308 $ 25.996,559 s 71.374.867 $ 75.880,648
See accompanying notes.
I
Functions/Programs
Primary Government
Governmental Activities:
General Government $
Public Safety
Road Maintenance and
Construction
Parks and Recreation
Conservation and Resource
Management
Interest/Fiscal Charges on
Long-term Debt
Total Governmental Activities
Business-type Activities:
Utility
Storm water
Sanitation
Building Code Enforcement
Total Business-type Activities
Total Primary Government $
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,2014
2015
0
::D
)>
Program Revenues Net (Expense) Revenue and Changes in Net Position Tl
Expenses
1,935,146
5,349,726
1,771,375
1,298,116
1,800
0
10,356,163
7,277,596
1,091,752
1,560,020
350 671
10.280.039
20,636,202
Operating
Charges for Grants and
Capital
Grants and
Services Contributions Contributions
$ 882,415 $ 0 $ 0
661,428 76,938 0
119,194 559,281 89,937
75,703 0 127,058
0 6,083 0
0 0 0
1,738,740 642,302 216,995
7,988,066 0 341,713
859,315 0 0
1,825,560 0 0
441 588 0 0
11,114,529 0 341,713
~ 12.853.269 $ 642 302 $ 558.708
General Revenues
Property Taxes
Sales Taxes
Business and Utility Taxes
State Revenue Sharing
Discretionary Sales Surtax
Investment Earnings (Loss)
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position, Beginning of Year
Prior Period Adjustment
Net Position, Beginning of Year (as Restated)
Net Position, End of Year
See accompanying notes.
2
Primar Government
Governmental Business-type 2014
Activities Activities Totals Totals
$ (1,052, 731) $ 0 $ (1,052,731) $ (1, 177, 176)
(4,611,360} 0 (4,611,360} ( 4,384,339}
(1,002,963) 0 (1,002,963) (1,079,014)
(1,095,355) 0 (1,095,355} (1,075,088)
4,283 0 4,283 8,180
0 0 0 (486}
{7, 758, 126) 0 {7. 758,126) (7, 707,923)
0 1,052,183 1,052,183 1,409,974
0 (232,437) (232,437) (293,978)
0 265,540 265,540 (78,798)
0 90,917 90.917 183.984
0 I 176 203 I 176.203 1.221,182
{7,758,126} 1,176,203 {6,581,923) (6,486,741)
4,113,476 0 4,113,476 3,908,365
1,296,201 0 1,296,201 1,208,547
1,109,471 0 1,109,471 1,135,931
321,521 0 321,521 300,007
772,098 0 772,098 721,981
3,170 (5,518) (2,348) 525,970
52,293 0 52,293 64,556
578 210 (578,210) 0 0
8,246,440 {583,728) 7,662,712 7,865,357
488,314 592,475 1,080 789 1,378,616
49,419,360 26,461,288 75,880,648 74,502,032
{4,529,366} {1,057,204) {5,586,570} 0
44,889 994 25,404,084 70,294,078 74,502,032
$ 45,378,308 $ 25,996,559 $ 71 374.867 $ 75,880,648
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,2014
Assets
Equity in Pooled Cash and Investments
Receivables-Net
Due from Other Funds
Due from Other Governments
Inventories
Notes Receivable-Current
Prepaid Items
Notes Receivable -Noncurrent
Total Assets
Liabilities and Fund Balances
Liabilities
Accounts Payable and Accrued Liabilities
Due to Other Funds
Deposits
Unearned Revenue
Total Liabilities
Fund Balances
Nonspendable:
Inventories
Prep aids
Restricted for:
Public Safety
Road Maintenance and Construction
Other Capital Projects
Other Purposes
Committed to:
Conservation and Resource Management
Assigned to:
Operating Reserves
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
2015
Non major
Governmental
General
$ 7,122,799 $
450
10,781
689,932
20,827
760
58,786
1,520
7 905 855
322,756
0
2,625
22,017
347,398
20,827
58,786
10,287
0
0
0
0
2,836,042
4,632,515
7,558,457
$ 7,905,855 $
See accompanying notes.
3
Funds
3,822,524
0
0
247,000
0
0
0
0
4,069,524
168,624
10,781
111
0
179,516
0
0
170,475
248,141
3,325,789
128,595
18,956
0
(1,948)
3,890,008
4,069,524
Totals
Governmental
Funds
$ 10,945,323
450
10,781
936,932
20,827
760
58,786
1,520
11 975 379
491,380
10,781
2,736
22,017
526,914
20,827
58,786
180,762
248,141
3,325,789
128,595
18,956
2,836,042
4,630,567
11,448,465
$ 11,975,379
2014
Totals
$ 10,312,186
2,730
6,531
988,067
29,370
0
13,008
0
11,351,892
393,083
6,531
9,199
10,905
419,718
29,370
13,008
168,310
159,677
3,588,843
86,906
14,673
2,685,355
4,186,032
10,932,174
$ 11,351,892
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
RECONCILIATION OF BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,2014
2015 2014
Total Fund Balances of Governmental Funds
Amounts Reported for Governmental
Activities in the Statement of Net Position
are Different Because:
Capital assets used in govemmental
activities are not financial resources
and, therefore, are not reported in
the funds:
Total Capital Assets
(Accumulated Depreciation)
Certain pension related amounts are being
deferred and amortized over a period of
years or are being deferred as contributions
to the pension plan made after the
measurement date:
Deferred Outflows Related to Pensions
Defen-ed Inflows Related to Pensions
Long-term liabilities are not due and payable
in the current period and, therefore, are
not reported in the govenunental funds:
Compensated Absences
Other Postemployment Benefits Obligation
Net Pension Liability
Total Net Position of Governmental Activities
$ 59,843,271
(20,301,137)
2,992,625
(39,827)
(573,231)
(178,501)
(7 ,813 ,3 57)
$ 1 l ,448,465
39,542,134
2,952,798
(8,565,089)
$ 45,378,308
See accompanying notes.
4
$ 58,407,187
(19,192,636)
0
0
(570,520)
(156,845)
0
$ 10,932,174
39,214,551
0
(727,365)
$ 49,419,360
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
2015
Non major Totals
Governmental Governmental 2014
General Funds Funds Totals
Revenues
Property Taxes $ 4,113,476 $ 0 $ 4,113,476 $ 3,908,365
Nonproperty Taxes 1,109,470 1,362,169 2,471,639 2,388,508
Permits, Fees, and Special Assessments 858,232 0 858,232 863,978
Intergovemmental Revenues 1,748,737 164,876 1,913,61} 1,912,864
Fines and Forfeitures 77,434 12,348 89,782 154,443
Charges for Services 742,416 0 742,416 756,446
Investment Eamings (Loss) 4,435 (2,025) 2,410 312,039
Miscellaneous Revenues 49,909 7,181 57,090 57,870
Interfund Charges 1,545,981 0 1,545,981 1,443,440
Total Revenues 10,250,090 1,544,549 11,794,639 11,797,953
Expenditures
Current:
General Government 2,845,102 0 2,845,102 3,004,357
Public Safety 4,868,455 103,287 4,971,742 4,973,414
Road Maintenance and Construction 1,317,266 274,068 1,591,334 1,727,874
Parks and Recreation 1,027,605 500 1,028,105 1,060,821
Conservation and Resource
Management 0 1,800 1,800 0
Debt Service:
Principal 0 0 0 69,203
Interest and Other 0 0 0 1,457
Capital Outlay 575,334 860,752 1,436,086 892,798
(Total Expenditures) (10,633,762) (1,240,407) (11,874,169) (11,729,924)
(Deficiency) Excess of Revenues (Under)
Over Expenditures (383,672) 304,142 (79,530) 68,029
Other Financing Sources (Uses)
Transfers in 1,003,210 85,000 1,088,210 1,342,003
Transfers (out) 0 (510,000) {51 0,000) (721,208)
Sale of General Fixed Assets 17,611 0 17,611 31,654
Total Other Financing Sources (Uses) 1,020,821 (425,000) 595,821 652,449
Net Change in Fund Balances 637,149 (120,858) 516,291 720,478
Fund Balances, Beginning of Year 6,921,308 4,010,866 10,932,174 10,211,696
Fund Balances, End of Year $ 7 558 457 $ 3,890,008 $ 11.448,465 $ 10,932,174
See accompanying notes.
5
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
2015 2014
Net Change in Fund Balances-TotafDovernmental Funds
Amounts Reported for Governmental Activities in the
Statement of Activities are Different Because:
Governmental funds report capital purchases as
expenditures. However, in the statement of
activities, the cost of those assets is depreciated
over their estimated useful lives and reported as
depreciation expense;
Expenditures for Capital Assets $ 1,436,084
(Current Year Depreciation) (1,108,501)
Certain nonexchange revenues reported in the
statement of activities are not considered current
financial resources and, therefore, are not reported
as revenue in the governmental funds.
Repayment of long-tem1 debt principal is an
expenditure in the governmental funds, but the
repayment reduces long-tetm liabilities in the
statement of net assets.
The changes in net pension liability and pension related
defeiTed outflows and inflows of resources result in
an adjustment to pension expense in the statement of
activities, but not in the govermnental fund statements.
Some expenses/revenues reported in the statement
of activities do not require the use of or provide
cun·ent financial resources and, therefore, are not
reported as expenditures in governmental funds:
Debt Interest Expense 0
Compensated Absences (2,711)
Net Pension Asset 0
Other Postemployment Benefits Obligation (21,656)
Change in Net Position-Governmental Activities
See accompanying notes.
6
$ 516,291 $
$ 892,798
{1,099,082)
327,583
0
0
(331, 193)
970
(5,719)
(2,271)
(21,119)
(24,367)
$ 488,314 $
720,478
(206,284)
9,799
69,203
0
(28,139)
565,057
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,2014
2015
Business-type Activities -Enterprise Funds
Building Code
Utility Stormwater Sanitation Enforcement
Assets
Current Assets:
Equity in Pooled Cash and Investments $ 4,914,330 $ 1,779,734 $ 397,201 $ 404,287
Accounts Receivable-Net 428,823 53,992 65,571 0
Due from Other Governments 35,244 0 0 0
Inventories 12,827 0 0 0
Notes Receivable-Current 15,759 0 0 0
Prepaid Items 16,105 0 0 0
Restricted Assets:
Equity in Pooled Cash and Cash Equivalents 1,218,056 0 0 0
Capital Assets:
Land 749,499 906,519 0 0
Buildings 4,356,384 0 0 0
Improvements Other Than Buildings 63,047,605 16,465,051 0 0
Equipment 1,758,710 337,447 189,877 42,347
Intangibles -Easements and Computer Software 226,394 0 0 18,315
(Accumulated Depreciation and Amortization) (40,152,145) (8,659,899) (181,360) (58,238)
Construction in Progress 253,048 307,360 0 0
Notes Receivable-Noncurrent 124,426 0 0 0
Total Assets 3720052065 11,190,204 471 289 406,71 I
Deferred Outflows of Resources-Noncurrent
Unamortized Refunding Loss 939,106 140,326 0 0
Pension Related 844,812 43,193 10,153 105,043
Total Assets and Deferred Outflows 1,783,918 183,519 10,153 105,043
See accompanying notes.
7
Totals
$ 7,495,552
548,386
35,244
12,827
15,759
16,105
1,218,056
1,656,018
4,356,384
79,512,656
2,328,381
244,709
(49,051,642)
560,408
124,426
49,0732269
1,079,432
1,003,201
2,082,633
$
2014
Totals
5,737,089
629,505
228,532
12,827
15,759
32,210
1,578,519
1,656,018
4,356,384
79,345,283
2,151,907
244,709
(46,737,041)
172,514
127,828
49,552,043
1,187,375
0
1,187,375
0
::D
)>
11
-I
0
CITY OF ATLANTIC BEACH, FLORIDA :D STATEMENT OF NET POSITION
PROPRIETARY FUNDS )> SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR SEPTEMBER30, 2014 11 (Concluded)
2015 -I Business-tyEe Activities -Enteq~rise Funds
Building Code 2014
Utility Stormwater Sanitation Enforcement Totals Totals
Liabilities
Current Liabilities Payable from Current Assets:
Accounts Payable and Other Current Liabilities $ 207,318 $ 46,939 $ 112,398 $ 9,337 $ 375,992 $ 1,084,426
Construction Retainages Payable 6,255 18,564 0 0 24,819 56,696
Due to Other Governments 7,086 0 0 3,980 11,066 10,194
Unearned Revenue 89,038 29,102 60,149 0 178,289 176,970
Compensated Absences -Current 62,125 1,094 0 4,816 68,035 109,167
Current Liabilities Payable from Restricted Assets:
Current Portion of Bonds Payable 948,300 141,700 0 0 1,090,000 0
Current Portion of Loans Payable 336,895 0 0 0 336,895 286,174
Accrued Interest Payable 231,341 21,142 0 0 252,483 97,471
Customer Deposits 586,894 0 0 0 586,894 952,496
Noncurrent Liabilities:
Due in More Than One Year 18,192,022 1,673,100 0 0 19,865,122 21,332,540
Compensated Absences-Noncurrent 134,869 0 0 4,918 139,787 120,160
Other Postemployment Benefits Obligation 41,896 10,112 0 7,790 59,798 51,836
Net Pension Liability 1,827,529 93,436 21,964 227,234 2,170,163 0
Total Liabilities 22,671,568 2,035,189 194,511 258,075 25,159,343 24,278,130
Net Position
Net Investment in Capital Assets 11,701,384 7,682,004 8,517 2,424 19,394,329 20,758,435
Restricted for:
Renewal and Replacement 250,000 0 0 0 250,000 250,000
Debt Service 381,162 0 0 0 381,162 286,174
Building Code Enforcement 0 0 0 251,255 251,255 261,288
Unrestricted 3,784,869 1,656,530 278,414 0 5,719,813 4,905,391
Total Net Position $ 16,117,415 $ 9,338,534 $ 286 931 $ 253,679 $ 25,996,559 $ 26,461,288
See accompanying notes.
8
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COlV.IPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER30, 2014
2015
Business-type Activities -Enterprise Funds
Building Code
Utility Stormwater Sanitation Enforcement
Operating Revenues
Charges for Services:
Customer Charges $ 7,892,897 $ 859,315 $ 1,756,608 $ 441,588 $
Franchise Permits 0 0 7,500 0
Miscellaneous Revenues 62 419 0 0 0
Total Operating Revenues 7,955,316 859,315 1,764,108 441,588
Operating Expenses
Personal Services 1,968,049 190,302 25,736 299,145
Contractual Services 638,961 127,173 1,386,682 965
Supplies 388,737 40,291 1,115 2,745
Repairs and Maintenance 120,049 18,015 5,858 3,780
Utilities 372,361 0 0 0
Depreciation 1,835,798 474,295 2,892 1,616
Intergovernmental Charges 1,113,777 160,883 137,737 35,027
Other Expenses 194 619 I 8,033 0 7 393
(Total Operating Expenses) (6,632,351) (1,028,992) (1,560,020) (350,671)
Operating Income (Loss) 1,322,965 (169,677) 204,088 90,917
Nonoperating Revenues (Expenses)
Connection Charges 32,750 0 0 0
Franchise Fees 0 0 61,452 0
Investment Earnings (Loss) (11,976) (2, 166) 491 8,133
Interest Expense (556,635) (48,040) 0 0
Gain on Disposal of Fixed Assets 9,897 0 0 0
Amortization of Refunding Loss {98,5072 {14,720} 0 0
Total Nonoperating Revenues (Expenses) (624,471) (64,926) 61,943 8,133
See accompanying notes.
9
Totals
10,950,408
7,500
62,419
11,020,327
2,483,232
2,153,781
432,888
147,702
372,361
2,314,601
1,447,424
220 045
(9,572,034)
1,448,293
32,750
61,452
(5,518)
(604,675)
9,897
(113,2272
(619,321)
$
2014
Totals
10,897,732
2,500
60,333
10,960,565
2,186,305
2,664,229
402,441
170,509
367,452
2,289,758
1,345,224
254 643
(9,680,561)
1,280,004
9,189
45,699
213,172
(861,481)
24,685
~52,8432
(621,579)
0
::D
)> ,
-I
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,2014
Income (Loss) Before Contributions
and Transfers $
Capital Contributions and Grants
and Transfers
Capital Contributions and Grants
Transfers in
Transfers (out)
Total Capital Contributions and Grants
and Transfers
Change in Net Position
Net Position, Beginning of Year
Prior Period Adjustments
Net Position, Beginning of Year (As Restated)
Net Position, End of Year $
(Concluded)
2015
Business-tyEe Activities -Enteq;!rise Funds
Utility Storm water Sanitation
698,494 $ (234,603) $
341,713 0
0 260,000
(615,167) 0
(273,454) 260,000
425,040 25,397
16,582,663 9,358,655
(890,288) (45,518)
15,692,375 9,313,137
16,117,415 $ 9,338,534 $
See accompanying notes.
10
266,031
0
0
(223,043)
(223,043)
42,988
254,643
(10,700)
243,943
286,931
Building Code
Enforcement
$ 99,050
0
0
0
0
99,050
265,327
(110,698)
154,629
$ 253,679
$
$
0
:D
)>
Tl _,
2014
Totals Totals
828,972 $ 658,425
341,713 775,929
260,000 285,000
(838,210) (905,795)
(236,497) 155,134
592,475 813,559
26,461,288 25,647,729
(1,057,204) 0
25,404,084 25,647,729
25,996,559 $ 26,461,288
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,2014
Cash Flows from Operating Activities
Cash Received from Customers
Cash Paid to Customer for Return of Deposit
Cash Paid to Suppliers
Cash Paid to Employees
Cash Paid for Interfund Services
Net Cash Provided by (Used in) Operating
Activities
Cash Flows from Noncapital Financing
Activities
Connection Charges
Franchise Fees
Transfers in
Transfers (out)
Net Cash Provided by (Used in) Noncapital
Financing Activities
Capital and Related Financing Activities
Capital Grants
Proceeds from Loan
Fixed Asset Additions
Proceeds from Sale ofPPE
Principal Payments on Long-term Debt
Issuance Costs Paid
Interest Paid
Net Cash Provided by (Used in) Capital
and Related Financing Activities
$
2015
Business-type Activities -Enterprise Funds
Building Code
Utility Stormwater Sanitation Enforcement Totals
8,027,673 $ 855,370 $ 1,764,044 $ 441,588 $ 11,088,675
0 0 0 (355,732) (355,732)
(2, 146,833) (178,164) (1,719,936) (23,857) (4,068,790)
(1,894,067) (179,444) (24,625) (271,071) (2,369,207)
(1,113,777) (160,886) (137,737) (35,027) (1,447,427)
2,872,996 336,876 (118,254) (244,099) 2,847,519
32,750 0 61,452 0 94,202
0 0 0 0 0
0 260,000 0 0 260,000
(615,167) 0 (223,043) 0 (838,210)
(582,417) 260,000 (161,591) 0 (484,008)
535,00 I 0 0 0 535,001
0 0 0 0 0
(456,090) (275,650) 0 0 (731,740)
9,897 0 0 0 9,897
(326,697) 0 0 0 (326,697)
0 0 0 0 0
(419,577) (27,585) 0 0 (447,162)
(657,466) (303,235) 0 0 (960,701)
See accompanying notes.
11
$
2014
Totals
11,325,520
0
(2,957,20 1)
(2,210,303)
(1,345,224)
4,812,792
9,189
45,699
285,000
(905,795)
(565,907)
547,397
13,960,000
(2,399,801)
24,685
(16,087, 763)
(52,843)
(1,187,382)
(5,195,707)
0
::D
)>
11
--i
CITY OF ATLANTIC BEACH, FLORIDA 0
STATEMENT OF CASH FLOWS JJ PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015, )> WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,2014
(Continued)
2015 11
Business-tyEe Activities -Enterprise Funds -1 Building Code 2014
Utility Storm water Sanitation Enforcement Totals Totals
Cash Flows from Investing Activities
Sale (Purchase) of Investments $ (865,804) $ (91,667) $ 286,614 $ 247,968 $ (422,889) $ (435,976)
Interest Received (11,976) (2,166) 491 8,841 (4,810) 213,985
Net Cash Provided by (Used in)
Investing Activities (877,780) ~93,833) 287,105 256,809 ~427,699) (221,991)
Net Increase (Decrease) in Cash and
Cash Equivalents 755,333 199,808 7,260 12,710 975,111 (1,170,813)
Cash and Cash Equivalents, Beginning of Year 489,017 161,326 73,338 69,326 793,007 1,963,820
Cash and Cash Equivalents, End of Year $ 1,244,350 $ 361,134 $ 80,598 $ 82,036 $ 1,768,118 $ 793,007
Reconciliation of O~erating Income (Loss} to
Net Cash Provided b:y (Used in} O~erating
Activities
Operating Income (Loss) $ 1,322,965 $ (169,677) $ 204,088 $ 90,917 $ 1,448,293 $ 1,280,004
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided by
(Used in) Operating Activities:
Depreciation 1,835,798 474,295 2,892 1,616 2,314,601 2,289,758
Change in Assets and Liabilities:
Accounts Receivable 88,923 (4,415) 13 0 84,521 (8,188)
Inventory 0 0 0 0 0 50,049
Prep aids 16,105 0 0 0 16,105 148,937
Compensated Absences (24,817) 0 0 3,176 (21,641) (31,762)
OPEB Obligation 6,370 636 0 956 7,962 7,764
Accounts Payable and Accrued Liabilities (448,211) 30,706 (326,281) 3,475 (740,311) 703,087
Customer Deposits (17,492) 136 0 (355,732) (373,088) 378,617
Unearned Revenue 926 470 (77) 0 1,319 (5,474)
Change in Deferred Outflow (514,144) (26,287) (6,179) (63,928) (610,538) 0
Change in Net Pension Liability 606,573 31,012 7,290 75,421 720,296 0
Net Cash Provided by (Used in) Operating Activities $ 2.872.996 $ 336 876 $ {118.254) $ (244.099) $ 2.847.519 $ 4.812.792
See accompanying notes.
12
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,2014
(Concluded)
Reconciliation of Cash and Cash Eguivalents
to Balance Sheet
Equity in Pooled Cash and Cash
Equivalents in Current Assets $
Restricted Equity in Pooled Cash
and Cash Equivalents
Equity in Pooled Investments
Total Cash and Cash Equivalents $
2015
Business-type Activities -Enterprise Funds
Building Code
Utility Stormwater Sanitation Enforcement
4,914,330 $ 1,779,734 $
1,218,056 0
(4,888,036) ~I ,418,6002
1,244,350 $ 361,134 $
See accompanying notes.
13
397,201 $ 404,287
0 0
(316,603) (322,251)
80,598 $ 82,036
Totals
$ 7,495,552
1,218,056
(6,945,490)
$ 1,768,118
$
$
2014
Totals
5,737,089
1,578,519
(6,522,6012
793,007
0
JJ
)> .,.,
-I
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF FIDUCIARY
NET POSITION
SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,2014
Pension Trust Funds
Assets
Cash and Cash Equivalents
Interest Receivable
Investments at Fair Value
Total Assets
Liabilities
Accounts Payable and Accrued Liabilities
Total Liabilities
Net Position
Net Position Restricted for Pensions
See accompanying notes.
14
$
$
2015 2014
137,107 $ 37,480
8,921 64,250
23,355,432 23,066,411
23,501,460 23,168,141
0 114
0 114
23,501,460 $ 23,168,027
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY
NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
Pension Trust Funds
2015 2014
Additions
Contributions:
Employer $ 1,437,627 $ 1,514,183
Employees 248,545 260,478
State of Florida 103,528 96,217
Total Contributions 1,789,700 1,870,878
Net (Decrease) Increase in
Fair Value oflnvestments 189,300 792,566
Interest and Dividends 139,274 441,637
Total Additions 2,118,274 3,105,081
Deductions
Refunds of Contributions 28,505 70,596
Benefits 1,555,728 1,222,239
Investment Expenses 122,714 101,021
Administrative Expenses 77,894 54,272
Total Deductions 1,784,841 1,448,128
Change in Net Position 333,433 1,656,953
Net Position, Beginning of Year (as Restated) 23,168,027 21,511,074
Net Position, End of Year
See accompanying notes.
15
$ 23,501,460 $ 23,168,027
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 1 -Summary of Significant Accounting Policies
The accounting policies of the City of Atlantic Beach, Florida, (the City), conform to accounting
principles generally accepted in the United States of America as applicable to governments. The
following is a summary of the more significant policies used in the preparation of these financial
statements.
Reporting Entity
The City was incorporated in 1957, under a charter in accordance with the laws of the State of
Florida, Florida Statutes Section 57-1126. The City operates under a form of goveniment which
comprises an elected City Commission (foUl' Commissioners and a Mayor-Commissioner) and
provides, under the administration of an appointed City Manager, the following se1vices: public
safety, public works (streets and infrastructure), recreation, sanitation, stormwater, reuse,
planning, zoning, water and sewer, and general government setvices.
In accordance with the Codification qf Governmental and Financial Reporting Standards, the
financial reporting entity consists of the primary government, organizations for which the
primary government is financially accountable, and other organizations whose exclusions would
cause the reporting entity's financial statements to be misleading or incomplete. The
Governmental Accounting Standards Board (GASB) has set forth criteria for consideration in
determining financial accountability. These criteria include appointing a majority of an
organization's governing body and: (1) the ability of the City to impose its will on that
organization; or (2) the potential for that organization to provide specific benefits to or impose
specific financial burdens on the City. Other considerations are whether the organization is
legally separate, whether the City holds the corporate powers of the organization, and whether
there is fiscal dependency by the organization on the City. Based upon the application of these
criteria, the City has no component units.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all of the non fiduciary activities of the City. For the most
part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges
for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or activity. Indirect costs are included in the program
expense reported for individual functions and activities. Program revenues include: (1) charges
to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or activity; and (2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or activity.
Taxes and other items not properly included among program revenues are reported instead as
general revenues.
16
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 1 -Summary of Significant Accounting Policies (Continued)
Government-wide and Fund Financial Statements (Concluded)
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-wide Financial Statements
The government-wide financial statements are repm1ed using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary
fund financial statements. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. The major exception to this general rule is charges between the City's water
and sewer function and various other functions of the City. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Amounts repmted as program revenues include: (1) charges to customers or applicants for goods,
services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and
contributions, including special assessments. General revenues include all taxes.
Net position is reported as one of three categories: (1) Net Investment in Capital Assets;
(2) Resh·icted; or (3) Unrestricted.
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accmal basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within sixty days of the end of the CUITent fiscal period. Expenditures· generally are
recorded when a liability is incurred, as under accmal accounting. However, debt service
expenditures, as well as expenditures related to compensated absences, other postemployment
benefits, pension expense, and claims and judgments, are recorded only when payment is due.
Taxes, intergovernmental revenue, licenses and pennits, charges for services, and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the cunent fiscal period. All other revenue items are considered
to be measurable and available only when cash is received by the City.
17
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 1 -Summary of Significant Accounting Policies (Continued)
Fund Financial Statements (Concluded)
The City repmts the following major governmental fund:
• The Geneml Fund is the City's primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The City reports the following major proprietary funds:
• The Utility Fund accounts for the activities ofthe City's water distribution, sewer collection
and treatment systems, and reuse system.
• The Sanitation Fund accounts for the activities of the City's sanitation system.
• The Stormwatcr Fund accounts for the activities of the City's stormwater system.
• The Building Code Enforcement Fund accounts for the activities of the City's Building
Department.
Additionally, the City reports the following fund types:
• Special Revenue Funds-The special revenue funds are used to account for the proceeds
of specific revenue sources (other than major capital projects) that are legally restricted to
expenditures for specified purposes.
• Debt Service Funds-The debt service fund is used to account for the accumulation of
resources for, and the payment of, long-term general obligation debt principal, interest, and
related costs other than obligations payable from the operations of the proprietary funds.
• Capital Projects Funds-The capital projects funds are used to account for the financial
resources to be used for the acquisition or construction of major capital facilities and
improvement projects (other than those financed by proprietary funds or special revenue
funds).
• Pension Trust Funds-These funds account for the activities of the Employees'
Retirement System, which accumulates resources for pension benefit payments to qualified
police officers and general employees.
Fund Balance Classification
Fund Balance is reported in five components -nonspendable, restricted, committed, assigned,
and unassigned:
• Nonspendable Fund Balance--amounts that are not in spendable form (such as inventory)
or are required to be maintained intact.
• Restricted Fund Balance--amounts constrained to specific purposes by their providers
(such as grantors, bondholders, and higher levels of government), through constitutional
provisions, or by enabling legislation.
18
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 1 -Summary of Significant Accounting Policies (Continued)
Fund Balance Classification (Concluded)
• Committed Fund Balance-amounts constrained to specific purposes by the City itself,
using its highest level of decision-making authority (i.e., ordinance passed by City
Commission). To be reported as committed, amounts cannot be used for any other purpose
unless the City takes the same highest level action to remove or change the constraint.
• Assigned Fund Balance-amounts the City intends to use for a specific purpose. Intent
can be expressed by the City Commission or by an official or body to which the City
Commission delegates the authority.
• Unassigned Fund Balance-amounts that are available for any purpose. Positive amounts
are reported only in the General Fund.
When both restricted and unrestricted resources are available for use, it is the City's practice to
use restricted resources first, then unrestricted resources as they are needed. When unrestricted
resources (committed, assigned, and unassigned) are available for use in any governmental fund,
it is the City's practice to use committed resources first, then assigned, and then unassigned as
needed.
The City Commission establishes (and modifies or rescinds) fund balance commitments by
passage of an ordinance. This is typically done through adoption and amendment of the budget.
A fund balance commitment is further indicated in the budget document as a designation or
commitment of the fund. Assigned fund balance is established by City Commission through
adoption or amendment of the budget as intended for specific purpose (such as the purchase of
fixed assets, construction, debt service, or for other purposes).
In the General Fund, the City strives to maintain a fund balance operating reserve to be used for
unanticipated emergencies of approximately 25% of the subsequent year's budgeted General
Fund payroll and operating expenditures.
Proprietary Funds
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the City's enterprise funds are charges to customers for sales
and services. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are repmted as nonoperating revenues and expenses.
Budgets
General governmental revenue and expenditures accounted for in budgetary funds are controlled
by a budgetary accounting system in accordance with various legal requirements which govern
the City's operations. Budgets are monitored at varying levels of classification detail; however,
expenditures cannot legally exceed total appropriations at the individual fund level.
19
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 1 -Summary of Significant Accounting Policies (Continued)
Budgets (Concluded)
Budgets are adopted for all governmental funds (general, special revenue, debt service, and
capital projects). The City Manager is authorized to transfer budgeted amounts within
departments within any fund; however, any revisions that increase the total expenditures of any
department or fund must be approved by the City Commission. All necessary supplemental
appropriations are adopted by the City Commission and are included in the reported budgetary
data. The budget presented in the accompanying required supplemental information is prepared
in conformity with accounting principles generally accepted in the United States of America.
Cash and Investments
Except where prohibited, cash resources of the individual funds are combined to form a pool of
cash and investments. Investment earnings and losses on the pooled cash and investments are
distributed to the appropriate funds based on the average monthly balance of investments in
each fund.
Investments are valued at fair market value (see Note 2).
For the purposes of the statement of cash flows, the City's proprietary funds consider cash and
cash equivalents to include cash and investments with an original maturity of three months or less.
Receivables
Receivables are recorded at their net realizable value.
Interfund 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" (i.e., the culTent
portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of
interfund loans).
Inventories
Inventories consisting principally of expendable materials, supplies, and fuel are determined by
physical count at the City's year-end on an annual basis and are valued at the lower of cost (first-
in, first-out) or market. On the balance sheet -governmental funds, the inventory balance
reported is considered nonspendable fund balance, which indicates that it does not constitute
"available spendable resources" even though it is a component of net current assets. The cost
of governmental fund-type inventories is recorded as expenditure when consumed.
Restricted Assets
Certain enterprise fund assets are required to be segregated from other current assets due to
various bond indenture agreements and City ordinances. These assets are legally restricted for
specific purposes, such as debt service, new construction, and renewals and replacements.
Use of Restricted Funds
When both restricted and unrestricted resources are available for use in the City's enterprise
funds, it is the City's policy to use restricted resources first, then unrestricted resources as they
are needed.
20
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 1 -Summary of Significant Accounting Policies (Continued)
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
drainage improvements, sidewalks, and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements.
Property, plant, and equipment with initial, individual costs that equal or exceed $1,000 and
estimated useful lives of over one year are recorded as capital assets. Capital assets are recorded
at historical cost or estimated historical cost if purchased or constructed. Donated capital assets
are recorded at estimated fair market value at the date of donation.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets' lives are not capitalized.
Property, plant and equipment are depreciated using the straight-line method over the following
estimated useful lives:
Assets
Buildings and lmprovements
Improvements Other Than Buildings
Infrastructure
Machinery and Equipment
Long-term Obligations
Years
10-40
10-50
25-100
3-40
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement
of net position. Bond premiums, discounts, and refunding losses are deferred and amortized
over the life of the bonds using the effective interest method. Issuance costs, whether or not
withheld from the actual debt proceeds, are reported as debt service expenditures.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Compensated Absences
Accumulated unpaid vacation and sick pay are accrued when incurred in the govemment-wide
and proprietary fund financial statements.
21
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Co~ttinued)
Note 1 -Summary of Significant Accounting Policies (Concluded)
Deferred Inflows/Outflows of Resources
Deferred inflows of resources reported on applicable governmental fund types represent
revenues which are measureable but not available in accordance with the modified accrual basis
of accounting. The deferred inflows will be recognized as revenue in the fiscal year they are
earned or become available. Deferred outflows of resources represent consumption of net
position that is applicable to a future reporting period. Deferred outflows have a positive effect
on net position, similar to assets.
Pension Related -Pension Related Deferred Inflows and Outflows represent the difference
between expected and actual experience with regard to economic or demographic factors and
changes to assumptions in the measurement of total pension liability, and the differences
between expected and actual earnings on pension plan investments. These amounts are reported
as deferred inflows or outflows of resources, to be recognized in expense over time. Also
included in deferred outflows are amounts contributed to the pension plans subsequent to the
measurement date. See Note 7 for information on Pension Related Deferred Inflows and
Outflows.
Revenue Recognition
Utility revenues are repmted on the accrual basis in the accompanying financial statements.
Grant revenues are recorded using the modified accrual basis in governmental funds and the
accrual basis in the proprietary funds. Restricted grant revenues, which are received but not
expended, are recorded as unearned revenues.
Property Taxes
The assessment of all propetties and the collection of all property taxes are made through the
Propetty Appraiser and Tax Collector of the City of Jacksonville, Florida. General propetty
taxes are recorded as received, in cash, which approximates taxes levied less discounts for the
current fiscal year.
Taxes are levied on November 1 of each year. All taxes become delinquent on April 1 of the
following year. Discounts are allowed for early payment. On or prior to June 1, interest-bearing
certificates are sold for all uncollected real property taxes. Unsold certificates are held by the
City of Jacksonville, Florida.
Interfund Transactions
During the course of nonnal operations, the City has various transactions between funds to
construct assets and comply with local ordinances and other legal restrictions. These
transactions are reflected as transfers. In addition, certain transfers have been made between
systems and accounts of the utility enterprise fund as required by bond covenants.
Prior Period Information
The financial statements include cettain prior year summarized comparative infonnation in total.
Such information does not include sufficient detail to constitute a presentation in conformity
with generally accepted accounting principles. Accordingly, such information should be read
in conjunction with the City's financial statements for the year ended September 30, 2014, from
which the summarized information was derived.
22
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 2-Cash and Investments
The City maintains a cash and investment pool that is designed for use by all funds, except for
those monies which are periodically transferred for pension investment purposes. ln addition,
investments are separately held and individually accounted for where contractual arrangements
and bond covenants provide for and require such arrangements.
At September 30, 2015, the carrying amount of cash on hand and on deposit with banks, including
interest-bearing deposits was $4,022,717, and the related bank balance was $4,369,095. Monies
which are placed on deposit with financial institutions in the form of demand deposit accounts,
time deposit accounts, and certificates of deposit are defined as public deposits. All of the City's
public deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280,
Florida Security for Public Deposits Act (the Act). Under the Act, all qualified public
depositories are required to pledge eligible collateral having a market value equal to or greater
than the average daily or monthly balance of all public deposits, times the depository's collateral
pledged level. The pledging level may range from 25% to 125% depending upon the depository's
financial condition and establishment period. All collateral must be deposited with an approved
financial institution.
Any losses to public depositors are covered by applicable deposit insurance, sale of securities
pledged as collateral and, if necessary, assessments against other qualified public depositories of
the same type as the depository in default.
The City elected to adopt a written investment policy as authorized under Florida Statutes.
Under the City's investment policies, general investments' activities are authorized to invest in
obligations of the U.S. Treasury, demand deposits, U.S. government agency securities,
certificates of deposit, U.S. government sponsored enterprises, government and corporate fixed
income mutual funds, corporate notes and bonds, and local government investment pools.
Pension trust funds can invest in the aforementioned and, additionally, authorized investments
include domestic and foreign equity securities, domestic and foreign fixed income securities, and
cash equivalent securities.
Following are the investments, credit ratings, and maturities of the City's governmental and
business-type activities at September 30,2015:
23
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 2 -Cash and Investments (Continued)
Investment Maturities
Less More
Investment Credit Fair Than 1-5 6-10 Than
TyQe Rating Value I Year Years Years 10 Years
Money Market Funds:
Morgan Stanley, N.A. Unrated $ 7,168 $ 7,168 $ 0 $ 0 $ 0
Mutual Funds:
Alliance Limited Duration
High Income Mutual Fund Unrated 1,189,005 1,189,005 0 0 0
Delaware Diversified Income A Unrated 2,483,596 2,483,596 0 0 0
Guggenheim Floating Rate
Strategy Class A Unrated 4,165,322 4,165,322 0 0 0
Invesco Floating Rate
Income Class A Unrated 727,801 727,801 0 0 0
Lord Abbett Short Duration
Income Class A Mutual Fund Unrated 3,011,218 3,011,218 0 0 0
Voya Floating Rate A Unrated 4,166,004 4,166,004 0 0 0
Florida PRIME A-I 22,817 22 817 0 0 0
Total $15,712931 $ 15112 231 $ Q $ 0 $ Q
Total
$ 7,168
1,189,005
2,483,596
4,165,322
727,801
3,011,218
4,166,004
22,817
$15112 231
Listed below are the investments and maturities in the City's pension trust funds at September 30,
2015:
Investment Maturities
Investment Fair Less Than 1-5 6-10 More Than
Ty[!e Value* 1 Year Years Years 10 Years Total
Cash Deposits and
Money Markets $ 7,381,526 $ 7,381,526 $ 0 $ 0 $ 0 $ 7,381,526
Common Stocks 14,302,996 14,302,996 0 0 0 14,302,996
Corporate Bonds 1,011,304 119,447 364,489 527,368 0 1,011,304
Government and
GSE Bonds 151,447 0 110,387 41,060 0 151,447
ICMA Self Directed 517 080 517 080 0 0 0 517,080
Total $ 23 364.353 $ 22 3?1 049 $ 474 816 .$_____568 428 $ 0 $ 23 364 353
* Fair value balances reported include interest receivable.
The total pension investment balances ofthe City at September 30, 2015, are comprised ofthe
following items:
24
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 2-Cash and Investments (Continued)
Moody's
Investment Credit
Ty(!e Rating
Corporate Bonds AI
Corporate Bonds A2
Corporate Bonds A3
Corporate Bonds AAI
Corporate Bonds AA3
Corporate Bonds AAA
Corporate Bonds BAAl
Corporate Bonds BAA2
Corporate Bonds BAA3
Government and GSE Bonds AAA
Stocks NR
Cash and Money Market NR
ICMA Self Directed NR
Percent
of
Total
0.32%
0.21%
0.74%
0.11%
0.21%
0.10%
1.64%
0.63%
0.39%
0.64%
61.21%
31.59%
2.21%
Credit Risl<-lt is the City's Police Officers' Retirement System Trust Fund's and the City's
General Employees' Retirement System Trust Fund's investment policies to, at a minimum,
limit 80% of the total fixed income portfolio to those that are rated investment grade of higher.
The Police Officers' Retirement System Trust Fund's investment policy defines investment
grade as "BBB", Baa", or their equivalent.
Also, no more than 10% (at cost) of the fixed income portfolio total value can be invested in the
securities of any single corporate issuer. The maximum allocation to International Equities is
25%.
Custodial Credit Risk-For an investment, custodial credit risk is the risk that, in the event of
the failure of the counterparty, the City will not be able to recover the value of its investments
or collateral securities that are in the possession of an outside party.
The City's investment policy does not contain legal or policy requirements that would limit the
exposure to custodial credit risk for deposits or investments, other than the following provision
for deposits: The Finance Director may execute a third party Custodial Safekeeping Agreement
with a commercial bank having trust powers or a trust company which is chartered by the United
States government or the State of Florida. All securities purchased and/or collateral obtained
by the City shall be properly designated as an asset of the City and held in safekeeping by the
trust department or trust company, and no withdrawal of such securities, in whole or in part,
shall be made from safekeeping, except by an authorized City staff member. The third party
Custodial Safekeeping Agreement shall include letters of authority from the City with details as
to responsibilities of parties, notification of security purchases, sales, deliver, repurchase
agreements, wire transfers, safekeeping and transaction costs, procedures in case of wire failure
or other unforeseen mishaps, including liability of each party.
25
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 2-Cash and Investments (Concluded)
Restricted cash and investments at September 30, 2015, in the enterprise funds follows:
Enterprise
Fnnds
Renewal
Customer and
Deposits Replacement
Debt
Service Totals
Utility Fund $ 586.894 $ 250.000 $ 3 81.162 !!!,$ ===l1,.,;2~18g..g,05~6
Note 3-Receivables
Receivables, net of the allowance for doubtful accounts at September 30, 2015, consist of the
following:
Less
Total Allowance Accounts
Accounts for Doubtful Receivable
Fund Receivable Accounts Net
General $ 1,210 $ 0 $ 1,210
Utility 447,683 (18,860) 428,823
Storm water 69,589 (15,597) 53,992
Sanitation 119 173 (53,602) 65 571
Total $ 637,655 $ (88,059) s; 542,596
Included in accounts receivable are $203,390 of water and sewer revenues earned, but not billed
as of September 30, 2015.
Note 4-Notes Receivable
It is the City's policy to allow its water and sewer customers to pay connection fees over an
extended period.
Following is a summary of the outstanding balance at September 30, 2015:
Notes Receivable
(Current Portion)
Total Notes Receivable -Noncurrent
26
$
$
140,185
05.759)
124.426
DRAFT
Note 5-Capital Assets
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Capital asset activity for the fiscal year ended September 30, 2015, is as follows:
Beginning
Balance Increases (Decreases)
Governmental Activities
Capital Assets Not Being Depreciated:
Land $ 10,363,002 $ 0 $ 0 $
Construction in Progress 417 906 898 463 (919,508)
Total Capital Assets Not
Being Depreciated 10,780,908 898.463 (919,508)
Capital Assets Being Depreciated:
Buildings 4,491,659 82,987 0
Intangible Assets 341,079 40,860 0
Improvements Other Than Buildings 39,156,369 919,508 0
Machinery and Equipment 3,637,172 413 774 0
Total Capital Assets Being Depreciated 47,626.279 1 457 129 0
Less Accumulated Depreciation for:
Buildings (1,856,760) (118,933) 0
Intangible Assets (334,215) (9,741) 0
Improvements Other Than Buildings (14,238,285) (686,756) 0
Machinery and Equipment (2,763,376) (293,071) 0
Total Accumulated Depreciation (19.192,636) (1, 1 08,501) 0
Total Capital Assets Being
Depreciated, Net 28,433,643 348 628 0
Governmental Activities Capital
Assets, Net L39 214 551 $ 1 247 091 $ (919.508) $
Business-type Activities
Capital Assets Not Being Depreciated:
Land $ 1,656,018 $ 0 $ 0 $
Construction in Progress 172 514 555 267 (167,373)
Total Capital Assets Not Being Depreciated 1,828,532 555.267 (167,373)
Capital Assets Being Depreciated:
Buildings 4,356,384 0 0
Intangible Assets 244,709 0 0
Improvements Other Than Buildings 79,345,283 167,373 0
Machinery and Equipment 2,151,907 176 474 0
Total Capital Assets Being Depreciated 86,098,283 343 847 0
Less Accumulated Depreciation for:
Buildings (4,275,987) (9,903) 0
Intangible Assets (30,282) (190) 0
Improvements Other Than Buildings (40,718,977) (2,216,682) 0
Machinery and Equipment (1,711,795) (87,826) 0
Total Accumulated Depreciation (46,737,041) (2,314,601) 0
Total Capital Assets Being Depreciated,
Net 39,361,242 (1,970,754) 0
Business-type Activities Capital Assets,
Net $ 41 189 774 $ (1.415Aal) $ (167 373) $
27
Ending
Balance
10,363,002
396 861
10,759,863
4,574,646
381,939
40,075,877
4 050 946
49,083,408
( 1,975,693)
(343,956)
(14,925,041)
(3,056,447)
(20,301,137)
28,782,271
39 542 134
1,656,018
560 408
2 216 426
4,356,384
244,709
79,512,656
2,328.381
86,442,130
(4,285,890)
(30,472)
(42,935,659)
(1,799,621)
(49,051,642)
37,390,488
39 606 914
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 5 -Capital Assets (Concluded)
Depreciation expense was charged to functions/programs as follows:
Governmental Activities
General Governmental
Public Safety
Road Maintenance and Construction
Parks and Recreation
Total Depreciation Expense -Governmental Activities
Business-type Activities
Utility
Storm water
Sanitation
Building Code Enforcement
Total Depreciation Expense-Business-type Activities
Note 6-Long-term Debt
Revenue Bonds and Loans payable are comprised of the following:
Revenue Bond Payable
Utilities System Revenue Refunding Bond, Series 2014, Payable in Atmual
Installments of Principal and Semiannual Installments oflnterest Through
October 1, 2025, Bearing Coupon Rates of2.330%, Secured Solely by a
Pledge of and Lien on Net Water and Sewer System Revenues and Certain
Other Revenues as Defined in the Bond Ordinance
Loans Payable
Florida Department of Environmental Protection, Disbursements and
Capitalized Interest for a $773,030 State of Florida Revolving Loan
#DW\60710, Issued to Finance the Construction Costs to Replace a
Well at Water Treatment Plant No. 1 and a Transmission Main on
Ocean Boulevard, Payable in Semiannual Installments ofPrincipal
and Interest Through November 15,2030, with Financing Rates of
2.71%, Secured Solely by a Pledge ofNet Water and Sewer System
Revenues, After Payment of all Yearly Payment Obligations on Account
of the Senior Revenue Obligations, as Defined in the Loan Agreement
Florida Department of Environmental Protection, Disbursements, Service
Fee, and Capitalized Interest for a Combined $9,368,576 State of Florida
Revolving Loan #WW160700, Issued to Finance the Construction of
Treatment and Transmission Facilities for the Buccaneer WWTP
Phase-out Improvements and TMDL Compliance Program WWTP #1,
Payable in Semiannual Installments of Principal and Interest Through
May 15, 2032, with Financing Rates of 3.14% and 2.88%, Secured Solely
by a Pledge of Net Water and Sewer System Revenues, After Payment
of all Yearly Payment Obligations on Account of the Senior Revenue
Obligations, as Defined in the Loan Agreement
Total Revenue Bonds and Loans Payable
28
$ 141,838
193,301
535,805
237 557
$ 1.108 501
$ 1,835,798
474,295
2,892
1 616
$ 2.314.601
$ 13,960,000
627,866
6 704 151
$ 21 222,017
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 6-Long-term Debt (Continued)
The annual requirements to amortize all revenue bonds and loans payable outstanding at
September 30, 2015, are as follows:
Business-type Activities
Year Ending Long-term Debt
September 30 PrinciQal Interest Total
2016 $ 1,426,895 $ 537,506 $ 1,964,401
2017 1,507,413 500,776 2,008,189
2018 1,543,259 462,611 2,005,870
2019 1,584,443 423,466 2,007,909
2020 1,620,979 383,330 2,004,309
2021-2025 8,735,952 1,278,514 I 0,014,466
2026-2030 3,863,525 387,235 4,250,760
2031-2032 1 009 551 39 294 I 048 845
Total $ 21 222 017 $ 4 012,732 $ 25 304742
Interest and amortization incurred during the year ended September 30, 2015, amounted to
$717,902. Ofthe amount incurred, no interest was capitalized.
The City is also required to maintain certain debt service coverage ratios in accordance with
bond resolutions. As of September 30, 2015, and during the year then ended, the City was in
compliance with those ratios.
The following is a summary of the changes in long-term debt of the City for the year ended
September 30, 2015:
Balance Balance Due
October 1, September 30, Within
2014 Additions Reductions 2015 One Year
Governmental Activities
Compensated Absences $ 570,520 $ 377,045 $ (374,334)$ 573,231 $ 191,157
OPEB Obligation 156,845 21,656 0 178,501 0
Net Pension Liability 5,747,103 2,066,254 0 7 813 357 0
Total Governmental Activities-
Long-term Liabilities $ 6,474,468 $ 2 464955 $ (314 334)$ 8 565 089 $ 19] 151
29
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 6-Long-term Debt (Continued)
Balance Balance
October 1, September 30,
2014 Additions Reductions 2015
Business-type Activities
State Revolving Fund Loans $ 7,658,714 $ 0 $ (326,697)$ 7,332,017
Revenue Bonds Payable 13,960,000 0 0 13,960,000
Less Deferred Amounts:
Loss on Bond Refunding (1,187,375) 0 107 943 ( 1,079,432)
Total Revenue Bonds Payable 12,772,625 0 107 943 12,880,568
Total Bonds/Loans Payable 20,431,339 0 (218,754) 20,212,585
Compensated Absences 229,327 123,786 (145,291) 207,822
OPEB Obligation 51,836 7,962 0 59,798
Net Pension Liability 1,449,865 720,298 0 2,170.163
Total Business-type Activities.
Long-term Liabilities $ 22 162.161 $ 852 Q46 $ (364.045)$ 22,65Q 368
Conduit Debt
Due
Within
One Year
:!! 336,895
1,090,000
0
1,090,000
1,426,895
68,035
0
0
$ 1 494 23Q
The City has issued Health Facility Revenue and Refunding Bonds to provide financial
assistance to private sector entities for the acquisition and construction of health care facilities
deemed to be in the public interest. These bonds are secured by the financed property and are
payable solely from the payments received on the underlying mortgage loans.
There is no obligation on the part of the City or any political subdivision for repayment of the
bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial
statements. As of September 30, 2015, there are two series of Health Facility Revenue and
Refunding Bonds outstanding, with an aggregate principal amount payable of $56,080,000.
Pledged Revenue
The City has pledged certain revenues to repay cetiain bonds and notes outstanding as of
September 30, 2015. The following table reports the revenues, sometimes net of related
operating expenses, pledged for each debt issue, the amounts of such revenues received in the
current year, the current year principal and interest paid on the debt, the approximate percentage
of each revenue which is pledged to meet the debt obligation, and the date through which the
revenue is pledged under the debt agreement, and the total pledged future revenues for each
debt, which is the amount of the remaining principal and interest on the bonds and notes at
September 30,2015:
30
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 6-Long-term Debt (Concluded)
Note 7-
Outstanding
Net Principal Estimated Principal
Pledged Revenue and Interest Percentage and Pledged
Descri[!tion Revenue Received Paid Pledged Interest Through
2014-Utility System Utility
Refunding Bonds Revenues $ 3,180,693 $ 206,907 * 6.51% $15,828,426 2026
Florida Department of
Environmental Utility
Protection, SRF Loan Revenues 3,180,693 49,879 1.57% 773,121 2031
Florida Department of
Environmental Utility
Protection, SRF Loan Revenues 3,180,693 511,953 16.10% 8,703,202 2032
* First principal payment was not due until October I, 2015.
Defined Benefit Pension Plans
Plan Descriptions
The City maintains two separate single-employer defined benefit pension plans, one for police
officers and one for general employees, which cover substantially all full-time City employees
hired before September 1, 2008. The general employees' defined benefit plan is closed to new
entrants. Full-time general employees hired on or after September 1, 2008, are covered by the
defined contribution plan disclosed in Note 8. The pension plans do not issue separate stand-
alone financial statements. Combining statements are included in the supplementary
information to the basic financial statements.
General Employees' Retirement Plan
Plan Description
The General Employees' Retirement Plan (Plan) provides retirement, disability, and death
benefits to Plan members and their beneficiaries. The City Commission has the authority to
establish and amend the benefit provisions of the Plan. The Plan is govemed by a Retirement
Plan Board appointed by the City Commission and comprised of five members, two of which
will be eligible legal residents of the City, two of which will be general employees elected by
the majority of general employees who are members of the Plan, and one of which will be elected
by the other four members. Plan membership in the General Employees' Retirement Plan as of
September 30, 2015 and 2014, is as follows:
31
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 7-Defined Benefit Pension Plans (Continued)
General Employees' Retirement Plan (Continued)
Plan Description (Concluded)
September 30,
Retirees and Beneficiaries
Inactive Plan Members or Beneficiaries
Currently Receiving Benefits
Inactive Plan Members Entitled to but Not Yet Receiving Benefits
Active Plan Members
Total
Plan Benefits
2015
59
12
48
112
September 30,
2014
56
11
56
123
Normal retirement is available upon the attainment of age sixty and the completion of five years
of credited service. Early retirement is available with a reduced benefit upon the attainment of
age fifty-five and the completion of five years of credited service. For members hired before
April24, 2005, the normal retirement benefit shall equal 2.85% of average final compensation
for each year of credited service. For members hired on or after April 24, 2005, the normal
retirement benefit shall equal 2.50% of average final compensation for each year of credited
service. The Plan includes a deferred retirement option program (DROP) under which members
eligible for normal retirement may have their monthly pension benefit credited to an account
while continuing to be actively employed for up to five years. As of September 30, 2015, Plan
net position included $29,039 of DROP account balances.
Contributions
The City is required to contribute at an actuarially dete1mined rate (32.67%) of valuation payroll
for the year ended September 30, 2015. City contributions to the Plan were $863,613 for the
year ended September 30,2015. Plan members are required to contribute 6.0% oftheir annual
covered salary. Contribution requirements are established by City code, which may be amended
by the City Commission.
Measurement Date
As previously described, the City implemented GASB 68 during the current year for its pension
plans. As permitted by the standard, the City elected to use a measurement date to value the net
pension liability and related deferred inflows and outflows as of September 30, 2014, one year
prior to the reporting date. The City's Pension Plans do no issue separate financial statements.
Therefore, the disclosures required by GASB 67 as of September 30, 2015, are also included
below.
Total Pension Plan Fiduciary Net Pension
Liabili!l: Net Position Liabili!l:
Balances at September 30,2013 $ 17,282,101 $ 13,770,7ll $ 3,511,390
Changes for the Year:
SetVice Cost 399,576 0 399,576
Interest 1,386,245 0 1,386,245
Changes in Assumptions 1,814,460 0 1,814,460
Contnbutions -Employer 0 950,980 (950,980)
Contributions -State 0 0 0
Contributions -Employee 0 157,383 (157,383)
Net Investment Income 0 778,981 (778,981)
Benefit Payments, Including
Refunds of Contributions (707,218) (707,218) 0
Administrative &penses 0 {31,529~ 31,529
Net Changes 2,893,063 1,148,597 1,744,466
Balances at September 30,2014 $ 20,175,164 $ 14,919,308 $ 5,255,g56
32
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
General Employees' Retirement Plan (Continued)
Measurement Date (Concluded)
September 30, 2015
Total Pension Liability
Plan Net Position
Net Pension Liability
General Employees' Retirement Plan Net Position as a Percentage
of Total Pension Liability
$
$
20,788,102
(15,008.338)
5.779 764
72.20%
For the year ended September 30, 2015, the City recognized total pension expense of $1,129,434.
The City reported deferred outflows of resources and deferred inflows of resources related to the
General Employees' Pension Plan from the following sources:
Deferred Outflows of Resources
Changes in Assumptions
Differences Between Project and Actual Eamings
Contributions Made Subsequent to Measurement Date
Total Deferred Outflows of Resources
$
$
1,296,043
269,969
863 613
2.429.625
Contributions made after the measurement date (shown above) will be recognized in the fiscal
year ended September 30, 2016. Other amounts reported as deferred outflows of resources
related to pensions will be recognized in pension expense as follows:
Year Ended
September 30
Plan Investments
2016
2017
2018
2019
2020
Thereafter
Total
$
$
Amount
585,909
585,909
326,701
67,493
0
0
1 566.012
The Retirement Plan Board is responsible for establishing and amending the Plan's investment
policies. The Plan's current investment policy gives the Board discretion to allocate assets with
assistance of the Plan's investment consultant No formal targets are stated in the investment
policy although the maximum allocation to international equities is 25%.
33
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 7-Defined Benefit Pension Plans (Continued)
General Employees' Retirement Plan (Continued)
Actuarial Assumptions
The total pension liability was determined by actuarial valuations for the Plan as of
September 30, 2014, rolled forward to September 30, 2015, using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation:
Salary Increases:
Investment Rate of Return:
Mortality:
Date of Experience Study:
2.50%
Age based ranging from 5.00%-13.50%
7 .00%, net of investment expenses, including
inflation
RP2000 Combined Health Participant Mortality
Table for males and females with generational
projections from the Year 2000 Projection Scale
AA
Other significant actuarial assumptions used in
the September 30, 2013 valuation were based on
the results of an actuarial experience study for the
period October 1, 2001 -September 30, 2010.
The long-tenn expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense of0.50% and intlation of2.50%) are
developed for each major asset class. These ranges are combined to produce the long-term
expected rate of retum by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inf1ation. Best estimates of arithmetic real rates
of return for each major asset class included in the pension plan's target asset allocation (see the
discussion of the pension plans' investment policy) are stunmarized in the following table:
Target Long-term Expected
Asset Class Allocation Real Net Rate of Return
US Large-Cap Growth Stocks 13% 7.4%
US Large-Cap Value Stocks 12% 7.0%
US Mid-Cap Growth Stocks 3% 8.6%
US Mid-Cap Value Stocks 4% 7.8%
US Mid-Cap Core Stocks 3% 6.9%
US Small-Cap Growth Stocks 5% 9.6%
US Small-Cap Value Stocks 5% 8.6%
International Equities 5% 7.2%
US Investment Grade Bonds 40% 1.8%
Cash (US 90-day T-hill) 10% 0.2%
34
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 7-Defined Benefit Pension Plans (Continued)
General Employees' Retirement Plan (Concluded)
Actuarial Assumptions (Concluded)
Discount rate. A single discount rate was used to measure the total pension liability. The single
discount rate was based on the expected rate of return on Plan investments of 7.00%. The
projection of cash flows used to determine the single discount rate assumed that plan member
contributions will be made at the current contribution rate and that City contributions will be
made at rates equal to the difference between actuarially determined contribution rates and the
member rate. Based on those assumptions, the Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of retum on Plan investments (7.00%) was applied to all periods of
projected benefit payments to detetmine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents
the net pension liability ofthe City, calculated using the discount rate of7.00%, as well as what
the City's net pension liability would be if it were calculated using a discount rate that is !-
percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate:
As of September 30, 2015:
Net Pension 1% Decrease Cunent Discount 1% Increase
Liability (6.00%) Rate (7.00%) (8.00%}
General Employees'
Pension Plan $ 8,074,170 $ 5,779,764 $ 3,819,787
As of September 30,2014:
Net Pension 1% Decrease Current Discount 1% Increase
Liabilit~ (6.00%) Rate (7.00%) (8.00%)
General Employees'
Pension Plan $ 7,489,269 $ 5,255,856 $ 3,344,704
Police Officers' Retirement Plan
Plan Description
The Police Officers' Retirement Plan (Police Plan) provides retirement, disability, and death
benefits to Police Plan members and their beneficiaries. The Police Plan is governed by the
Policemen's Pension Board of Trustees, although the City Commission retains the authority to
establish and amend the benefit provisions of the Police Plan. The Policemen's Pension Board of
Trustees is appointed by the City Commission and comprised of five members, two ofwhich will
be eligible legal residents of the City, two of which will be police officers elected by the majority
of police officers who are members ofthe Police Plan, and one ofwhich will be elected by the
other four trustees. Membership in the Police Officers' Retirement Plan as of September 30,
2015 and 2014, is as follows:
35
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
Police Officers' Retirement Plan (Continued)
Plan Description (Concluded)
September 30,
Retirees and Beneficiaries 2015
Inactive Plan Members or Beneficiaries
Currently Receiving Benefits 20
Im;~ctive Plan Members Entitled to but Not Yet Receiving Benefits 5
Active Plan Members 21
Total 46
Plan Benefits
September 30,
2014
20
4
22
46
For members hired before January 1, 2013, normal retirement is available upon the attainment
of age fifty and the completion of twenty years of credited service, the attainment of age fifty-
five and the completion often years of credited service, the completion of twenty-five years of
credited service regardless of age, or the attainment of age sixty and the completion of five years
of credited service. For members hired on or after January 1, 2013, normal retirement is
available upon the attainment of age fifty-five and the completion often years of credited service
or the attainment of age fifty-two and the completion of twenty-five years of credited service.
Early retirement is available with a reduced benefit upon the attainment of age fifty and the
completion of ten years of credited service.
For members hired before January 1, 2013, the normal retirement benefit shall equal3.00% of
average final compensation for each year of credited service. For members hired on or after
Janumy 1, 2013, the normal retirement benefit shall equal2.00% of average final compensation
for each year of credited service. The Police Plan includes a DROP under which members
eligible for normal retirement may have their monthly pension benefit credited to an account
while continuing to be actively employed for up to five years. As of September 30, 2015, Police
Plan net position included $488,041 of DROP account balances.
Contributions
The City is required to contribute, at actuarially determined rates, if State of Florida
contributions are not sufficient (combined City and State contributions were 41.48% of
valuation payroll for the year ended September 30, 2015). City and State contributions to the
Police Plan were $677,542 for the year ended September 30, 2015. Police Plan members are
required to contribute 7.0% of their annual covered salary. Per City Code, the City Commission
may amend established contribution requirements.
Measurement Date
As previously described, the City implemented GASB 68 during the current year for its pension
plans. As permitted by the standard, the City elected to use a measurement date to value the net
pension liability and related deferred inflows and outflows as of September 30,2014, one year
prior to the reporting date. The City's Pension Plans do no issue separate financial statements.
Therefore, the disclosures required by GASB 67 as of September 30, 2015, are also included
below:
36
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 7-Defined Benefit Pension Plans (Continued)
Police Officers' Retirement Plan (Continued)
Measurement Date (Concluded)
Total Pension Plan Fiduciary
Balances at September 30,2013
Changes for the Year:
Service Cost
Interest
Changes of Assumptions
Contributions -Employer
Contributions -State
Contributions -Employee
Net Investment Income
Benefit Payments, including
Refunds ofContributions
Administrative Expenses
Net Changes
Balances at September 30,2014
September 30, 2015
Total Pension Liability
Plan Net Position
Net Pension Liability
Liabili!l:
$ 11,017,205
269,182
879,486
1,275,669
0
0
0
0
(585,616)
0
1,838,721
$ 12,855,926
Police Officers' Retirement Plan Net Position as a Percentage
of Total Pension Liability
Net Position
$ 7,331,627
0
0
0
563,203
96,217
103,095
642,480
(585,616}
(22,742)
796,637
$ 8,128,264
$
$
Net Pension
$
$
Uabili!l:
3,685,578
269,182
879,486
1,275,669
(563,203}
(96,217)
(103,095)
(642,480)
0
22,742
1,042,084
4,727,662
13,402,655
(8,493, 122)
4.909 533
63.37%
For the year ended September 30,2015, the City recognized total pension expense of$749,144.
The City repmied deferred outflows of resources and deferred inflows of resources related to the
Police Officers' Pension Plan from the following sources:
Defened Outflows of Resources
Differences Between Project and Actual Earnings
Contributions Made Subsequent to Measurement Date
Total Deferred Outflows of Resources
Deferred Inflows of Resources
Differences Between Project and Actual Eamings
Total Deferred Outflows of Resources
37
$
$
$
_$
992,187
574 014
1 566 201
39.827
39 827
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 7-Defined Benefit Pension Plans (Continued)
Police Officers' Retirement Plan (Coutinued)
Deferred Inflows of Resources (Concluded)
Contributions made after the measurement date (shown above) will be recognized in the fiscal
year ended September 30, 2016. Other amounts repmted as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended
September 30 Amount
2016 $ 273,525
2017 273,525
2018 273,525
2019 131,785
2020 0
Thereafter 0
Total $______ 952,360
Plan Investments
The Policemen's Pension Board of Trustees is responsible for establishing and amending the
Police Plan's investment policies. The Police Plan's current investment policy gives the Board
discretion to allocate assets with assistance of the Police Plan's investment consultant. No
formal targets are stated in the investment policy although the maximum allocation to
international equities is 25%.
Actuarial Assumptions
The total pension liability was determined by actuarial valuations for the Plan as of
September 30, 2014, rolled forward to September 30, 2015, using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation:
Salary Increases:
Investment Rate of Return:
Mortality:
Date of Experience Study:
2.50%
Age based ranging from 4.50%-22.50%
7.00%, net of investment expenses, including
inflation
RP2000 Combined Health Patticipant Mortality
Table for males and females with generational
projections from the Year 2000 Projection Scale AA
Other significant actuarial assumptions used in the
September 30, 2014, valuation were based on the
results of an actuarial experience study for the period
October 1, 2001 -September 30, 20 I 0.
The long-term expected rate of return on pension plan investments was detennined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense of 0.50% and inflation of2.50%) are
developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates
of return for each major asset class included in the pension plan's target asset allocation (see the
discussion ofthe pension plans' investment policy) are summarized in the following table:
38
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 7-Defined Benefit Pension Plans (Concluded)
Police Officers' Retirement Plan (Concluded)
Actuarial Assumptions (Concluded)
Asset Class Target Allocation
US Large-Cap Growth Stocks 13%
US Large-Cap Value Stocks 12%
US Mid-Cap Growth Stocks 3%
US Mid-Cap Value Stocks 4%
US Mid-Cap Core Stocks 3%
US Small-Cap Growth Stocks 5%
US Small-Cap Value Stocks 5%
International Equities 5%
US Investment Grade Bonds 40%
Cash (US 90-day T-bill) 10%
Long-term Expected
Real Net Rate of Return
7.4%
7.0%
8.6%
7.8%
6.9%
9.6%
8.6%
7.2%
1.8%
0.2%
Discount rate. A single discount rate was used to measure the total pension liability. The single
discount rate was based on the expected rate of return on Police Plan investments of7.00%. The
projection of cash flows used to determine the single discount rate assumed that plan member
contributions will be made at the current contribution rate and that City contributions will be
made at rates equal to the difference between actuarially determined contribution rates and the
member rate. Based on those assumptions, the Police Plan's fiduciary net position was projected
to be available to make all projected future benefit payments of current Police Plan members.
Therefore, the long-term expected rate of return on Police Plan investments (7 .00%) was applied
to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents
the net pension liability of the City, calculated using the discount rate of7.00%, as well as what
the City's net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (6.00%) or !-percentage-point higher (8.00%) than the current rate:
September 30, 2015
Net Pension
Liabilitv
1% Decrease
(6.00%)
Current Discount
Rate (7.00%)
1% Increase
(8.00%)
Police Officers'
Pension Plan $ 6,525,880 $ 4,909,533 $ 3,565,056
September 30, 2014
Net Pension
Liability
Police Officers'
Pension Plan $
1% Decrease
(6.00%)
6,321,181 $
39
Current Discount
Rate (7.00%)
4,727,662 $
1% Increase
(8.00%)
3,399,917
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 8-Defined Contribution Plan
The City passed an ordinance in 2013 closing the General Employees' defined benefit plan to
new entrants and creating the City of Atlantic Beach Defined Contribution Plan. The City's 457
defined contribution plan is administered through ICMA, which covers all eligible employees
employed with the City on or after September 1, 2008, who are not covered by the City's Police
Officers' defined benefit plan. Under the 457 Plan, the City contributes an employer matching
contribution of up to 6% of earnings during the first ten years of service. Following ten years
of service, the City contributes a fixed contribution of 4% of earnings. Employees have the
option to voluntarily contribute to the 457 Plan. Employer matching contributions from the City
were $57,604 and $44,268 for the years ended September 30, 2015 and 2014, respectively.
Under the 457 Plan, an employee is considered fully vested after 5 years of completed service.
Note 9-Postemployment Benefits Other Than Pensions
Plan Description
The City of Atlantic Beach administers a single-employer defined benefit health care plan (Plan)
that provides medical insurance benefits to its employees and their eligible dependents. In
accordance with Section 112.0801 of the Florida Statutes, because the City provides a medical
plan to active employees of the City and their eligible dependents, the City is also required to
provide retirees with the opp01tunity to pmticipate in this Plan. Benefit provisions for the Plan
are established by the City Commission and may be amended by the City Commission. The
City does not issue stand-alone financial statements for the Plan.
Membership in the Plan consisted of the following, as of October 1, 2012, the date of the latest
actuarial valuation:
Retirees and Beneficiaries Receiving Benefits
Active Plan Members
Total
Funding Policy
2
90
92
Contribution rates for the Plan are established on an annual basis by the City Commission.
Eligible retirees and their covered dependents receiving benefits contribute I 00% of the blended
(active and retiree combined) equivalent premium rates. While the City does not directly
contribute towards the costs of retiree premiums via an explicit subsidy, the ability of retirees to
obtain health insurance coverage at a blended, group rate constitutes a significant economic
benefit to retirees, or an "implicit" subsidy. This implicit subsidy is considered to be another
postemployment benefit (OPEB) obligation of the City. The City is currently funding this
OPEB obligation on a pay-as-you-go basis. Annual Required Contribution (ARC) amounted to
$49,705 for the current fiscal year. The ARC is based on a rate of 1.0% of projected payroll of
$4,204,177 or an average $486 per active pa1ticipant. For the year ended September 30, 2015,
the City estimated it implicitly subsidized $19,740 of health care costs for its retirees and
covered dependents. This implied subsidy reduced the annual OPES cost to a net expense of
$29,617 after interest on the Net OPEB Obligation and adjustments to ARC.
40
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 9-Postemployment Benefits Other Than Pensions (Continued)
Annual OPEB Cost and Net OPEB Obligation
The City's annual OPEB cost (expense) is calculated based on the ARC of the employer, an
amount actuarially determined in accordance with the parameters of GASB Statement No. 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year to amortize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed 30 years. The following table shows the components of the City's annual
OPEB cost for the year, the amount actually contributed to the Plan, and changes in the City's
net OPEB obligation to the retiree health plan:
Annual Required Contribution
Interest on Net OPEB Obligation
Adjustment to Annual Required Contribution
Annual OPEB Cost (Expense)
Employer Contribution
Increase in Net OPEB Obligation
Net OPEB Obligation-Beginning ofYear
Net OPEB Obligation-End of Year
$
$
49,705
8,347
(8,695)
49,357
(19,740)
29,617
208.681
238.298
The City reflected the $29,617 increase in net OPEB obligation at September 30, 2015, by
recording an obligation of $21,655 for governmental activities and $7,962 for business-type
activities in its government-wide statement of net position. The utility fund reported a net OPEB
obligation of$41,896, while the stormwater fund, sanitation fund, and building code enforcement
fund reported $10,112, $0, and $7,790, respectively. The OPEB obligation is a function of ARCs,
interest, adjustments to the ARC, annual pension costs, and actual employers' contributions made
to the Plan.
No trust or agency fund has been established for the Plan.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and
the net OPEB obligation as of September 30, 2015, are presented below.
Percentage
Fiscal Annual of Annual Net
Year OPEB OPEB Cost OPEB
Ended Cost Contributed Ob1igation
September 30, 2013 $ 43,987 28.5% $ 179,798
September 30, 2014 46,487 37.9% 208,681
September 30, 2015 49,357 20.7% 238,298
Funded Status and Funding Progress
As of October 1, 2012, the date of the latest actuarial valuation, the actuarial accrued liability for
benefits was $360,584, all of which was unfunded. The covered payroll (annual payroll of active
employees covered by the Plan) was $4,204,177, and the ratio of the unfunded actuarial accrued
liability to the covered payroll was 8.58%. The projection of future benefit payments for an
ongoing plan involves 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, mortality, and the health care cost trend. Amounts determined regarding the
funded status of the Plan and the ARCs of the employer are subject to continual revision as actual
results are compared with past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary information following the
notes to the financial statements, presents multiyear trend information about whether the actuarial
value of Plan assets is increasing or decreasing over time, relative to the actuarial accrued
liabilities for benefits.
41
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
Note 9 -Postemployment Benefits Other Than Pensions (Concluded)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan 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 plan members to that point. The methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities, consistent with the long-term perspective of the calculations.
In the actuarial valuation as of October 1, 2012, the date of the latest actuarial valuation, the
Entry-Age Normal Actuarial Cost Method was used, which spreads the costs evenly as a percent
of pay throughout the collective careers of those in the covered workforce. The unfunded
actuarial accrued liability is being amortized using a level (principal and interest combined)
percent of payroll over a 26-year period.
Other significant actuarial assumptions include a 4% discount rate, an annual health care cost
trend rate of -17%, followed by 11% for the next year, followed by 7.5% for the next year,
reduced by decrements of 0.5% each year to the ultimate value of 5%, projected salary increases
of 4% annually (including general price inflation of3%), and future participation rates of 15%
up to Medicare eligibility with a 2% participation rate thereafter.
Note 10-Interfund Accounts
Individual fund interfund receivables and payables at September 30, 2015, consist of the
following:
Due Due
from Other to Other
Funds Funds
General $ 10,781 $ 0
Nonmajor Governmental 0 10,781
Interfund receivable/payables are due to timing differences associated with grant reimbursements.
The receivable/payables are expected to be received/paid within one year.
Note 11 -Iuterfund Transfers
Transfers of resources from a fund receiving revenue to the fund through which the resources
are to be expended are recorded as transfers and are repotied as other financing sources (uses)
in the governmental funds and as transfers in (out) in the proprietary funds. Following is a
summary of interfund transfers for the year ended September 30, 2015:
Transfers In
Nonmajor
Storm water General Governmental Total
Transfers Out Fund Fund Funds Transfers
Nonmajor Govemmental Funds $ 260,000 $ 165,000 $ 85,000 $ 510,000
Utility Fund 0 615,167 0 615,167
Sanitation Fund 0 223,043 0 223 043
Total Transfers $ 260,000 $ I 003 210 $ 85 000 $ 1 348 210
Transfers are used to move revenues from the fund that ordinance or budget requires to collect
them to the fund that ordinance or budget requires to expend them.
42
DRAFT
Note 12-Commitments
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Continued)
As of September 30, 2015, the City had outstanding commitments on contracts in progress as
follows:
Project Type
Utility System Improvements
Stormwater System Improvements
General Government Improvements
Unexpended
Contract Amounts
$ 225,819
82,399
578,207
On June 2, 1999, the City entered into an agreement with the City of Jacksonville, Florida,
whereas the City of Jacksonville will provide advanced life support and fire services to the
residents and businesses located in the City. The term of the agreement shall be from the
effective date and continuing for a period of 25 years unless terminated earlier by the parties
(such parties must provide a one-year notice). For the year ended September 30, 2015, the City
incurred $1,066,557 in services under this agreement. The amount will be adjusted annually by
an amount equal to 103% of the previous year's amount for all services provided by the City of
Jacksonville.
Note 13-Contingencies
The City is a defendant in several lawsuits which arose in the ordinary course of the City's
business. To the extent the outcome of such I itigation has been determined to result in probable
loss to the City, an estimated loss has been accrued in the accompanying financial statements.
The outcome of the remaining claims cannot be determined at this time.
Note 14-Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions; and natural disasters for which the City can·ies commercial
insurance. Insurance against losses are provided through the Public Risk Insurance Agency and
LB Bryan and Company for the following types of risk:
• Workers' Compensation and Employer's Liability • General Liability
• Automobile Liability • Public Officials' Liability
• Automobile Physical Damage • Property Coverage
• Accidental Death and Dismemberment
The City's coverage for workers' compensation is under a retrospectively rated policy.
Premiums are accrued based on the ultimate cost to-date of the City's experience for this type
of risk.
43
DRAFT
Note 15-Other Disclosures
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
(Concluded)
New Accounting Pronouncements
During the year, the City implemented GASB Statement No. 68, Accounting and Financial
Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date. GASB 68 establishes standards for measuring and
recognizing liabilities, deferred outflows of resources, deferred inflows of resources, and
expenses/expenditures related to the City's pension plans. For defined benefit pensions,
GASB 68 identifies the methods and assumptions that should be used to project benefit payments,
discount projected benefit payments to their present value, and attribute that present value to
periods of employee service. GASB 68 also addresses note disclosure and required
supplementary information. As permitted by the standard, the City chose to use a measurement
date of the net pension liability one year prior to the reporting date. GASB 71 requires a
government that is transitioning to the new standards to recognize a beginning deferred outflow
of resources to its pension contributions made subsequent to the measurement date of the
beginning net pension liability of the initial fiscal year of implementation.
As a result of these statements, beginning Net Position was reduced as follows:
Govemmental Activities
Governmental Activities
Business-type Activities
Utility
Stormwater
Sanitation
Building Code Enforcement
Total Business-type Activities-
Enterprise Funds
Total Restatement of Net Position
Components ofthe restatement consist of the following:
Net Pension Liability
Deferred Outflows -Contributions Made During
Fiscal Year Ended September 30, 2015
Total Restatement of Net Position
44
$
$
$
4,529,366
890,288
45,518
10,700
110 698
1,057,204
5,586,570
7,196,968
( 1, 61 0.398)
5.586,570
DRAFT
REQUIRED SUPPLEMENTARY INFORMATION
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
GENERAL EMPLOYEES' PENSION PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
Total Pension Liability
Setvice Cost
Interest
Difference Between Actual and Expected Experience
Changes in Assumptions
Benefit Payments
Refunds
Net Change in Total Pension Liability
Total Pension Liability -Beginning
Total Pension Liability -Ending (a)
Plan Fiduciary Net Position
Contributions-Employer
Contributions-Employee
Net Investment Income
Benefit Payments
Refunds
Administrative Expenses
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position -Beginning
Plan Fiduciary Net Position-Ending (b)
Net Pension Liability-Ending (a) -(b)
Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability
Covered Employee Payroll
Net Pension Liability as a Percentage of Covered
Employee Payroll
September 30, 2015
$ 402,093
1,404,316
(162,280)
0
(1,031,191)
0
612,938
20,175,164
20,788,102
863,613
136,191
162,326
(1,031, 191)
0
(41,909)
89,030
14,919,308
15,008,338
$ 5,779,764
72.20%
$ 2,643,589
218.63%
The data presented above was measured using actuarial methods prescribed by GASB 67/68.
Additional years will be added to this schedule annually, until 10 years of data is presented.
45
September 30,2014
$ 399,576
1,386,245
0
1,814,460
(697,702)
(9,516)
2,893,063
17,282,101
20,175,164
950,980
157,383
778,981
(697,702)
(9,516)
(31,5291
1,148,597
13,770,711
14,919,308
$ 5,255,856
73.95%
$ 3,026,642
173.65%
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
GENERAL EMPLOYEES' PENSION PLAN
SCHEDULE OF CONTRIBUTIONS
Actuarially Determined Contribution
September 30, 2015
$ 863,613
863,613
September 30, 2014
$ 950,980
950,980 Contributions in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess) $ 0 $ 0
Covered Employee Payroll $ 2,643,589 $ 3,026,642
Contributions as a Percentage of Covered
Employee Payroll 32.67% 31.42%
Additional years wi II be added to this schedule annually until 1 0 years of data is presented.
NOTES TO SCHEDULE
Valuation Date: October 1, 2013
Actuarially determined contribution rates are calculated as of September 30, two years prior to the end of the fiscal year in which
contributions are reported.
Methods and assumptions used to determine contribution rates:
Funding Method:
Amortization Method:
Remaining Amortization Period:
Asset Valuation Method:
Inflation:
Salary Increases:
Interest Rate:
Members' Contribution Rate:
Retirement Age:
Post Retirement COLA:
Mottality:
Date of the Most Recent
Experience Study:
Entry Age Normal Cost Method
Closed, Level Dollar Method
10 years
4-year Smoothed Market Value: Difference between the expected and actual return on
market value of assets phased in over a period of four (4) years (at the rate of25% per
year), adjusted to be no greater than 120% and no less than 80% of the fair market value.
3.0% per year
5.5%-14.0%
7.0% per year compounded annually, net of investment related expenses.
6.00%
Experience-based table of rates that vary by age.
None
RP2000 Combined Healthy Pmticipant Mortality Table for males and females with
generational projections from the year 2000 Projection Scale AA.
Other significant actuarial assumptions used in the September 30, 2013 valuation were
based on the results of an actuarial experience study for the period October 1, 2001-
September 30, 2010.
46
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
POLICE OFFICERS' PENSION PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
Se~tember 30, 2015 SeEtember 30, 2014
Total Pension Liability
Service Cost $ 291,761 $ 269,182
Interest on the Total Pension Liability 900,982 879,486
Difference Between Actual and Expected Experience (213,426) 0
Changes in Assumptions 0 1,275,669
Benefit Payments (524,537) (524,537)
Refunds (28,505) (61,079)
Other (Excess Premium Tax Liability) 120,454 0
Net Change in Total Pension Liability 546,729 1,838,721
Total Pension Liability -Beginning 12,855,926 11,017,205
Total Pension Liability-Ending (a) 13,402,655 12,855,926
Plan Fiduciary Net Position
Contributions -Employer 574,014 563,203
Contributions -State I 03,528 96,217
Contributions -Member 112,354 103,095
Net Investment Income 43,534 642,480
Benefit Payments (524,537) (524,537)
Refunds (28,505) (61,079)
Administrative Expenses (35,984) (22,742)
Other (Excess Premium Tax Liability) 120,454 0
Net Change in Plan Fiduciary Net Position 364,858 796,637
Plan Fiduciary Net Position -Beginning 8,128,264 7,331,627
Plan Fiduciary Net Position-Ending (b) 8,493,122 8,128,264
Net Pension Liability-Ending (a)-(b) $ 4,909,533 $ 4,727,662
Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 63.37% 63.23%
Covered Employee Payroll $ 1,633,327 $ 1,696,583
Net Pension Liability as a Percentage of Covered
Employee Payroll 300.58% 278.66%
The data presented above was measured using actuarial methods prescribed by GASB 67/68.
Additional years will be added to this schedule annually until 10 years of data is presented.
47
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
POLICE OFFICERS' PENSION PLAN
SCHEDULE OF CONTRIBUTIONS
Actuarially Dete1mined Contribution*
Contributions in Relation to the Actuarially Determined Contribution*
Contribution Deficiency (Excess)
September 30, 2015
$ 665,091
677,542
September 30, 2014
$ 654,280
659,420
$ (12,451) $ (5, 140)
Covered Employee Payroll $ 1,633,327 $ 1,696,583
Contributions as a Percentage of Covered Employee Payroll 41.48% 38.87%
*Amounts include the contribution from the State ofFlorida.
Additional years will be added to this schedule annually untillO years of data is presented.
NOTES TO SCHEDULE
Valuation Date: October 1, 2013
Actuarially determined contribution rates are calculated as of September 3 0, two years prior to the end of the fiscal year in which
contributions are reported.
Methods and assumptions used to determine contribution rates:
Funding Method:
Amortization Method:
Remaining Amortization Period:
Asset Valuation Method:
Inflation:
Salary Increases:
Payroll Growth:
Interest Rate:
Retirement Age:
Post Retirement COLA:
Mm1ality:
Date of the Most Recent
Experience Study:
Entry Age Normal Cost Method
Closed, Level% of Pay Method
26 years
Smoothed market value over a period of four (4) years, as prescribed under
Internal Revenue Procedure 2000-40, adjusted to be no greater than 120% and
no less than 80% of the fair market value.
3.0% per year
5.0%-23.0%
1.88% per year
7.0% per year compotmded annually, net of in_vestment related expenses.
Experience-based table ofratcs based on year of eligibility.
None
RP2000 Combined Healthy Participant Mm1ality Table for males and females
with generational projections from the year 2000 Projection Scale AA.
Significant assumptions used in the September 30, 2013 valuation were based on the
results of an actuarial experience study for the period of October 1, 2001 -
September 30,2010.
48
DRAFT
Valuation
Date
9/30/06 $
10/1/09
10/1/12
CITY OF ATLANTIC BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
SEPTEMBER 30, 2015
Actuarial
Actuarial Accrued Unfunded Annual
Value of Liability AAL Funded Covered
Assets (AAL} (UAAL} Ratio Payroll
0 $ 470,703 $ 470,703 0.0% $ 4,812,000
0 497,883 497,883 0.0% 5,828,339
0 360,584 360,584 0.0% 4,204,177
UAALas
Percentage
of Covered
Payroll
9.78%
8.54%
8.58%
Analysis of the dollar amounts of actuarial value of assets, actuarial accrued liability, or unfunded actuarial
accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of
the actuarial accrued liability provides one indication of the system's funded status on a going concern
basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger
or weaker. Generally, the greater this percentage, the stronger the plan. The unfunded actuarial accrued
liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial
accrued liability as a percentage of covered payroll approximately adjusts for the effects of inflation and
aids analysis of the progress being made in accumulating sufficient assets to pay benefits when due.
Generally, the smaller this percentage, the stronger the plan.
49
DRAFT
Revenues
Property Taxes
Nonproperty Taxes
CITY OF ATLANTIC BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL-GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Budgeted Amounts Actual
Original Final Amounts*
$ 4,055,229 $ 4,055,229 $ 4,113,476
1,133,812 1,133,812 1,109,470
Permits, Fees, and Special Assessments 857,743 857,743 858,232
Intergovernmental Revenues 1,704,051 1,704,051 1,748,737
Fines and Forfeitures 83,700 83,700 77,434
Charges for Services 774,658 774,658 742,416
Interest Income 116,250 116,250 4,435
Miscellaneous Revenues 49,385 56,885 49,909
Interfund Charges 1,549,137 1,549,137 1,545,981
Total Revenues 10,323,965 10,331,465 10,250,090
Expenditures
Governing Body:
City Commission 41,665 41,665 38,708
City Clerk 288,265 292,368 253,017
City Attorney 132,000 132,000 96,150
Total Governing Body
' 461,930 466,033 387,875
City Administration:
City Manager 261,506 261,506 235,093
General Government 521,706 557,322 461,303
Human Resources 194,531 194,531 187,215
Information Technology 835,706 876,662 809,654
Finance 906,827 934,421 859,608
Total City Administration 2,720,276 2,824,442 2,552,873
Planning and Zoning 152,292 245,166 145,206
Public Safety:
Police 3,941,813 3,955,249 3,597,391
School Crossing Guards 9,693 9,693 9,850
Animal Control 96,506 96,627 91,161
Fire 1,310,639 1,314,338 1,312,786
Code Enforcement 64,455 64,455 50,204
Total Public Safety 5,423,106 5,440,362 5,061,392
50
Variance With
Final Budget -
Positive
(Negative)
$ 58,247
(24,342)
489
44,686
(6,266)
(32,242)
(111,815)
(6,976)
(3, 156)
(81,375)
2,957
39,351
35,850
78,158
26,413
96,019
7,316
67,008
74,813
271,569
99,960
357,858
(157)
5,466
1,552
14,251
378,970
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL-GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(Concluded)
Budgeted Amounts Actual
Original Final Amounts*
Expenditures (Concluded)
Public Works:
Administration and Streets $ 1,292,899 $ 1,318,688
Fleet Maintenance 269,624 269,624
Total Public Works 1,562,523 I ,588,312
Parks and Recreation:
Recreation and Special Events 364,353 364,353
Parks Maintenance 735,210 896,491
Total Parks and Recreation 1,099,563 1,260,844
(Total Expenditures) (11,419,690) (11,825,159)
(Deficiency) of Revenues (Under)
Expenditures (1,095,725) (1,493,694)
Other Financing Sources (Uses)
Transfers in 1,003,210 1,003,210
Transfers (out) 0 (322,709)
Sale of General Fixed Assets 0 0
Total Other Financing Sources (Uses) 1,003,210 680,501
Excess of Revenues and Other
Financing Sources Over Expenditures
and Other Financing Uses (92,515) (813,193)
Fund Balances, Beginning of Year 5,637,789 5,236,590
Fund Balances, End of Year $ 5,545,274 $ 4,423,397
* Actual amounts include a reversal of $(346, 721) prior year encumbrance roll-forward,
plus current year encumbrance roll-forward of $257,113.
51
$ 1,150,691
261,471
1,412,162
346,294
637,421
983,715
(10,543,223)
(293, 133)
1,003,210
0
17,611
1,020,821
727,688
6,574,588
$ 7,302,276
Variance With
Final Budget -
Positive
(Negative)
$ 167,997
8,153
176,150
18,059
259,070
277,129
1,281,936
1,200,561
0
322,709
17,611
340,320
1,540,881
1,337,998
$ 2,878,879
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
NOTE TO SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL-GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Budgets and Budgetary Accounting
General governmental revenues and expenditures accounted for in budgetary funds are controlled by a
budgetary accounting system in accordance with various legal requirements which govern the City's
operations. Budgets are monitored at varying levels of classification detail; however, expenditures cannot
legally exceed total appropriations at the individual fund level. Encumbrances are recorded. Unexpended
items which are unencumbered at year-end must be re-appropriated in the subsequent year.
Budgets are adopted for all governmental funds (general, special revenue, debt service, and capital projects
funds). The City Manager is authorized to transfer budgeted amounts within departments within any fund;
however, any revisions that increase the total expenditures of any department or fund must be approved by
the City Commission. All necessary supplemental appropriations are adopted by the City Commission and
are included in the reported budgetary data. The budget presented in the accompanying required
supplemental information is prepared in confonnity with accounting principles generally accepted in the
United States of America.
52
DRAFT
SUPPLEMENTARY INFORMATION
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
2015
Special Revenue Funds
Convention
Tree Local Option Development Half-cent Court Cost
Replacement Gas Tax Tax Sales Tax Training
Assets
Equity in Pooled Cash and
Investments $ 18,956 $ 169,795 $ 102,939 $ 637,775 $ 105,927
Due from Other Governments 0 78,346 25,656 131,190 230
Total Assets 18,956 248,141 128,595 768,965 106,157
Liabilities and Fund Balances
Liabilities
Accounts Payable and
Accrued Liabilities 0 0 0 124,107 0
Due to Other Funds 0 0 0 0 0
Deposits 0 0 0 0 0
Total Liabilities 0 0 0 124,107 0
Fund Balances
Restricted for:
Public Safety 0 0 0 0 106,157
Road Maintenance and
Construction 0 248,141 0 0 0
Other Capital Projects 0 0 0 644,858 0
Other Purposes 0 0 128,595 0 0
Committed:
Conservation and Resource
Management 18,956 0 0 0 0
Unassigned 0 0 0 0 0
Total Fund Balances 18,956 248,141 128,595 644,858 106,157
Total Liabilities and Fund
Balances $ 18,956 $ 248,141 $ 128,595 $ 768,965 $ 106,157
53
DRAFT
Special Revenue Funds
Radio
Communication
$ 14,208
797
15,005
0
0
0
0
15,005
0
0
0
0
0
15,005
Contraband
$
Forfeiture
47,231
0
47,231
0
0
111
111
47,120
0
0
0
0
0
47,120
Community
Development
Block Grants
$ 2,314
0
2,314
4,262
0
0
4,262
0
0
0
0
0
(1,948)
(1,948)
$
2015
Police
Grants
5,828
10,781
16,609
3,635
10,781
0
14,416
2,193
0
0
0
0
0
2,193
$
Totals
Special
Revenues
Funds
1,104,973
247,000
1,351,973
132,004
10,781
Ill
142,896
170,475
248,141
644,858
128,595
18,956
(1,948)
1,209,077
$
Capital
Projects
2,717,551
0
2, 717,551
36,620
0
0
36,620
0
0
2,680,931
0
0
0
2,680,931
Totals
Nonmajor
Governmental
$
Funds
3,822,524
247,000
4,069,524
168,624
10,781
Ill
179,516
170,475
248,141
3,325,789
128,595
18,956
(1,948)
3,890,008
$
2014
Totals
3,739,371
287,946
4,027,317
3,521
6,531
6,399
16,451
160,767
159,677
3,588,843
86,906
14,673
0
4,010,866
$ 15,005 $ 47,231 $ 2,314 =$===1=6,=6=09= $ 1,351,973 $ 2,717,551 $ 4,069,524 $ 4,027,317
54
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
2015
Special Revenue Funds
Convention
Tree Local Option Development Half-cent Court Cost
Replacement Gas Tax Tax Sales Tax Training
Revenues
Taxes $ 0 $ 450,707 $ 127,059 $ 772,098 $ 0
Other Intergovernmental
Revenues 0 0 0 0 0
Fines and Forfeitures 0 0 0 0 3,859
Investment Earnings (Loss) 0 567 (370) 340 (119)
Miscellaneous Revenues 6,083 0 0 0 0
Total Revenues 6,083 451,274 126,689 772,438 3,740
Expenditures
Current:
Culture and Recreation 0 0 0 0 0
Public Safety 0 0 0 0 12,999
Road Maintenance and
Construction 0 202,810 0 71,258 0
Conservation and Resource
Management 1,800 0 0 0 0
Debt Service:
Principal 0 0 0 0 0
Interest and Other 0 0 0 0 0
Capital Outlay 0 0 0 344,186 0
(Total Expenditures) (1,800) (202,810) 0 (415,444) (12,999)
Excess (Deficiency) ofRevenues
Over (Under) Expenditures 4,283 248,464 126,689 356,994 (9,259)
Other Financing Sources (Uses)
Transfers in 0 0 0 0 0
Transfers (out) 0 (160,000) (85,000) (260,000) 0
Total Other Financing
Sources (Uses) 0 (160,000) (85,000) (260,000) 0
Net Change in Fund Balances 4,283 88,464 41,689 96,994 (9,259)
Fund Balances, Beginning of Year 14,673 159,677 86,906 547,864 115,416
Fund Balances, End of Year $ 18,956 $ 248,141 $ 128,595 $ 644,858 $ 106,157
55
DRAFT
2015
Special Revenue Funds
Totals Totals
Community Special Nonmajor
Radio Contraband Development Police Revenue Capital Governmental 2014
Communication Forfeiture Block Grants Grants Funds Projects Funds Totals
$ 12,305 $ 0 $ 0 $ 0 $ 1,362,169 $ 0 $ 1,362,169 $ 1,252,577
0 0 89,937 74,939 164,876 0 164,876 278,510
0 8,489 0 0 12,348 0 12,348 59,909
(47) (71) 0 0 300 (2,325) (2,025) 96,491
0 1,098 0 0 7,181 0 7,181 3,724
12,258 9,516 89,937 74,939 1,546,874 (2,325) 1,544,549 1,691,211
0 0 500 0 500 0 500 0
0 0 0 72,746 85,745 17,542 103,287 122,354
0 0 0 0 274,068 0 274,068 285,478
0 0 0 0 1,800 0 1,800 0
0 0 0 0 0 0 0 69,203
0 0 0 0 0 0 0 1,457
0 0 91,385 0 435,571 425,181 860,752 390,159
0 0 (91,885) (72,746) (797,684) (442,723) (1,240,407) (868,651)
12,258 9,516 (1,948) 2,193 749,190 (445,048) 304,142 822,560
0 0 0 0 0 85,000 85,000 275,500
0 (5,000) 0 0 (510,000) 0 (510,000) (721,208)
0 (5,000) 0 0 (510,000) 85,000 (425,000) (445,708)
12,258 4,516 (1,948) 2,193 239,190 (360,048) (120,858) 376,852
2,747 42,604 0 0 969,887 3,040,979 4,010,866 3,634,014
$ 15,005 $ 47,120 $ (1 .. 948) $ 2,193 $ 1,209,077 $ 2,680,931 $ 3,890,008 $ 4,010,866
56
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
COMBINING STATEMENT OF FIDUCIARY
NET POSITION
SEPTEMBER 30, 2015,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2014
Pension Trust Funds
Police General
Officers' Employees'
Retirement Retirement 2015
Plan Plan Totals
Assets
Cash and Cash Equivalents $ 68,372 $ 68,735 $ 137,107
Interest Receivable 3,355 5,566 8,921
Investments at Fair Value 8,421,395 14,934,037 23,355,432
Total Assets 8,493,122 15,008,338 23,501,460
Liabilities
Accounts Payable and Accrued Liabilities 0 0 0
Total Liabilities 0 0 0
Total Net Position
Held in Trust for Pension
Benefits (as Restated) $ 8,493,122 $ 15,008,338 $ 23,501,460
57
2014
Totals
$ 37,480
64,250
23,066,411
23,168,141
114
114
$ 23,168,027
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY
NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
Pension Trust Funds
Police General
Officers' Employees'
Retirement Retirement 2015 2014
Plan Plan Totals Totals
Additions
Contributions:
Employer $ 574,014 $ 863,613 $ 1,437,627 $ 1,514,183
Employees 112,354 136,191 248,545 260,478
State of Florida 103,528 0 103,528 96,217
Total Contributions 789,896 999,804 1,789,700 1,870,878
Net (Decrease) Increase in Fair
Value oflnvestments 37,142 152,158 189,300 792,566
Interest and Dividends 50,642 88,632 139,274 441,637
Total Additions 877,680 1,240,594 2,118,274 3,105,081
Deductions
Refunds of Contributions 28,505 0 28,505 70,596
Benefits 524,537 1,031,191 1,555,728 1,222,239
Investment Expenses 44,250 78,464 122,714 101,021
Administrative Expenses 35,985. 41,909 77,894 54,272
Total Deductions 633,277 1,151,564 1,784,841 1,448,128
Change in Net Position 244,403 89,030 333,433 1,656,953
Net Position, Beginning of
Year (as Restated) 8,248,719 14,919,308 23,168,027 21,511,074
Net Position, End of Year $ 8,493,122 $ 15,008,338 $ 23,501,460 $ 23,168,027
58
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
IDSTORICAL REVENUES AND EXPENSES
FOR THE YEARS ENDED SEPTEMBER 30, 2011 THROUGH SEPTEMBER 30, 2015
2011 2012 2013 2014 2015
Revenues
Operating Revenues:
Water:
Customer Charges $ 3,382,973 $ 3,069,998 $ 3,006,787 $ 2,955,863 $ 2,992,677
Miscellaneous Charges 46,424 48,815 52,996 54,852 62,286
Total Water 3,429,397 3,118,813 3,059,783 3,010,715 3,054,963
Sewer:
Customer Charges 5,085,318 5,015,358 5,109,868 4,938,510 4,934,151
Miscellaneous Charges 20,006 3,303 1,651 1,237 107
Total Sewer 5,105,324 5,018,661 5,111,519 4,939,747 4,934,258
Total Operating Revenues 8,534,721 8,137,474 8,171,302 7,950,462 7,989,221
Nonoperating Revenues:
Investment Income (Loss):
Water 108,762 197,492 (115,023) 186,681 (7,718)
Sewer (16,367) (21,010) 18,426 (43,954) (4,257)
Total Nonoperating Revenues 92,395 176,482 {96,597) 142,727 (11 ,975~
Total Revenues 8,627,116 8,313,956 8,074,705 8,093,189 7,977,246
Expenses
Operating Expenses:
Water 1,292,948 1,303,708 1,228,763 1,287,783 1,442,578
Sewer 2,569,748 2,493,500 2,005,653 2,170,495 2,055,780
Total Operating Expenses 3,862,696 3,797,208 3,234,416 3,458,278 3,498,358
Administrative, Nondivisional
and Other:
Water 545,971 518,506 521,600 530,715 563,356
Sewer 685,074 696,922 674,514 677,464 734,839
Total Administrative, Non-
divisional and Other 1,231,045 1,215,428 1,196,114 1,208,179 1,298,195
{Total Expenses) (5,093,741) (5,012,636) (4,430,530) ( 4,666,457) (4,796,553)
Net Revenues Available for
Debt Service 3,533,375 3,301,320 3,644,175 3,426,732 3,180,693
Nonoperating Income (Expense)
Interest Expense (710,196) (726,058) (766,111) (896,571) (556,635)
Loan Amortization (14,730) (25, 712) (12,787) {162,552) (98,507~
Total Nonoperating Income
(Expense) (724,926) (751,770) (778,898) (1,059,123) (655,142)
Net Income Before Depreciation
and Operating Transfers $ 2,808,449 $ 2,549,550 $ 2,865,277 $ 2,367,609 $ 2,525,551
59
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
SCHEDULESOFNETREVENUESINACCORDANCE
WITH BOND RESOLUTIONS
ENTERPRISE FUNDS (WATER AND SEWER)
FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND SEPTEMBER 30, 2014
2015
Gross Revenues
Utility $ 7,955,290 $
Connection Charges 33,932
Interest (11,977)
Total Gross Revenues 7,977,245
Operating Expenses
Personal Services 1,968,047
Contractual Services 638,961
Supplies 388,737
Repairs and Maintenance 120,049
Utilities 372,361
Intergovernmental Charges 1,113,777
Other Expenses 194,619
(Total Operating Expenses) (4,796,551)
Total Net Revenues in Accordance with Bond Resolutions $ 3,180,694 $
Total Debt Service $ 768,739 * $
Debt Service Coverage Ratio 413.75%
Required Debt Service Coverage Ratio 100.00%
(a) Rate Stabilization Fund:
Balance, Beginning of Year $ 400,000 $
Transfer/Redeposit to Revenue Fund 0
Balance, End of Year $ 400,000 $
*The 2014 Series Refunding Bonds' first principal payment was not due until October 1, 2015.
60
2014
7,933,418
17,044
142,727
8,093,189
1,802,458
788,322
366,425
133,621
367,452
986,547
221,633
( 4,666,45 8)
3,426,731
2,001,479
171.21%
100.00%
400,000
0
400,000
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
OTHER BOND COVENANT DISCLOSURES
FOR THE YEARS ENDED SEPTEMBER 30, 2011 THROUGH SEPTEMBER 30, 2015
Year
2011
2012
2013
2014
2015
Electricity
$ 487,585
452,183
459,672
473,097
476,997
Utility Service Tax Collections
(Last Five Years)
Communications
$ 604,567
567,909
576,839
522,654
526,996
Gas
$ 28,062
23,187
20,849
16,911
15,555
Ad Valorem Tax Collections
(Last Five Years)
Year Total
2011 $ 3,968,233
2012 3,961,395
2013 3,843,755
2014 3,908,365
2015 4,113,476
61
Fuel Oil Total
$ 33 $ 1,120,247
14 1,043,293
17 1,057,377
29 1,012,691
7 1,019,555
DRAFT
OTHER STATISTICAL INFORMATION
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
MAJOR UTILITY CUSTOMERS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(UNAUDITED)
Fleet Landing (Retirement Community)
Oaks of Atlantic Beach (Mobile Home Park)
Navy (Federal Government)
City of Atlantic Beach, Florida
Arium Atlantic Beach (Apartment Complex)
John Creek Estate (Mobile Home Park)
Hanna Park (Regional Park)
A vesta Homes (Apartment Complex)
One Ocean Resort (Hotel)
Sea Oats Plantation (Apartment Complex)
Total
62
Annual
Billings
$ 386,590
1,644,484
294,668
143,636
129,311
126,044
105,919
81,911
77,958
60,727
$ 3,051,248
DRAFT
ADDITIONAL ELEMENTS OF REPORT PREPARED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS,
ISSUED BY THE COMPTROLLER GENERAL OF
THE UNITED STATES; THE RULES OF THE AUDITOR GENERAL OF
THE STATE OF FLORIDA; AND OTHER CONTRACT REQUIREMENTS
DRAFT
CITY OF ATLANTIC BEACH, FLORIDA
SCHEDULE OF SOURCE AND EXPENDITURE OF THE CITY GRANT FUNDS
PER ORDINANCE CODE CHAPTER 118.301(e)
Source of City Funds
FOR FISCAL YEAR 2014-2015
City of Jacksonville Public Service Grants Received as a
Subgrant Recipient Per Interlocal Agreement
Fiscal Year
2014-2015
Grant No. 5629-57
Amount of Award (Per City of Jacksonville
Budget Ordinance) $ 91,386
Actual Funds Received from City of
Jacksonville in Last Audit Period
Actual Funds Received this Period
Amount Earned but Not Received this Period
Unspent Award Amount
Expenditure of City Funds
$
0
(89,937)
0
1,449
(A) City Fiscal Year 2014-2015 Grant #5629-76-includes carry-over of$9,192fi"om 2013-2014 Grant #5629-56.
Project I Federal Grant Number
Area Neighborhood Infrastructure Improvements
# 005525/Bl4UC120017
Total
63
Budgeted
$ 91,386
$ 91,386
Actual
10/1/2014 Remaining
9/30/2015 Balance
$ 89,937 $ 1,449
$ 89,937 $ 1,449
(A)
DRAFT Purvis Gray&.. ____________________ C_om_Qany
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor, City Commissioners, and
City Manager
Atlantic Beach, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
City of Atlantic Beach, Florida, (the City), as of and for the year ended September 30, 2015, and the
related notes to the financial statements, which collectively comprise the City's basic financial statements,
and have issued our report thereon dated ____ _
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and conect, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the City's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial repmiing was for the limited purpose described in the
first paragraph of this section and was not designed to identifY all deficiencies in internal control that
might be material weaknesses or, significant deficiencies. We consider the following deficiency in
internal control to be a material weakness:
Certified Public Accountants
P.O. Box 141270 • 222 N.E. 1st Street w Gainesville, Florida 32614·1270 • (352) 378-2461 • FAX (352) 378-2505
L;rurel Ridge Professional Center ~ 2347 S.E. 17th Street • Ocala, Florida 34471 • (352) 732-3872 • FAX (352) 732-0542
443 East College Avenue ~ Tallahassee, Florida 32301 • (850) 224-7144 • FAX (850) 224-1762
5001 Lakewood Ranch Blvd. N., Suite "101 • Sarasota, Florida 34240 • (941) 907-03.50 • FAX (941) 907-0309
MI:MBERS OF AMERIC\N AND FLORIDA INS!IruTES Of CEJ(TirJED PUIJLIC ACCOUNTANTS
Mllv\ll[R Of AMERICAN INSTITUT[ OF CERTifiELll'llilUC ,\('COl''HAi-iTS PRIVATE CCJ,\-WANIES A~'() ~.LC. PRACTICE SECfiDNS
64
DRAFT
Honorable Mayor, City Commissioners, and
City Manager
Atlantic Beach, Florida
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
(Concluded)
Internal Control Over Financial Reporting (Concluded)
15-1-Financial Close and Reporting
Condition-At the commencement of final fieldwork it was noted that the preliminary working trial
balance did not reflect all of the required closing entries, including but not limited to the accrual and
reversal of numerous balance sheet accounts. It was also noted that a large prior year accrual was
improperly booked to expense in fiscal year 2015. A deficiency in the financial repmting and close
process could result in numerous errors and increases the risk of undetected misstatements.
Recommendation-We recommend that the City's finance department evaluates their monthly and yearly
financial close and repmting process. In addition, the finance department should perform variance
analysis throughout the year over major balance and income statement accounts in order to identify and
correct any errors in a timely manner.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
repmted under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the .results of that testing, and not to provide an opinion on the effectiveness of the City's internal
contml or on compliance. This report is an integral pa11 of an audit perfmmed in accordance with
Government Auditing Standards in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Gainesville, Florida
65
DRAFT
GPurvis
ray~ ____________________ Co_m_Qany
JNDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
Honorable Mayor, City Commissioners, and
City Manager
Atlantic Beach, Florida
We have examined the City of Atlantic Beach, Florida's (the City) compliance with Section 218.415,
Florida Statutes during the period ended September 30, 2015, as required by Section 10.556(10)(a), Rules
of the Auditor General. Management is responsible for the City's compliance with those requirements.
Our responsibility is to express an opinion on the City's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants (AICPA) and, accordingly, included examining, on a test basis,
evidence about the City's compliance with those requirements and petforming such other procedures as
we considered necessary in the circumstances. We believe that our examination provides a reasonable
basis for our opinion. Our examination does not provide a legal determination of the City's compliance
with specified requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for the
year ended September 30, 2015.
This report is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, the
City, its management, and is not intended to be, and should not be, used by anyone other than these
specified pmties.
Gainesville, Florida
Certified Public Accountants
P.O. Box 141270 "222 N.E. 1st Street • Gainesville, Florida 32614-1270 • (352) 378-2461 • FAX (352) 378-2505
Laurel Ridge Professional Center • 2347 S.E. 17th Street • Ocala, Florida 34471 • (352) 732-3872 ~ FAX (352) 732-0542
443 East College Avenue • Tallahassee, Florida 32301 • (850j 224-7144 • FAX (850) 224-1762
5001 Lakewood Ranci1 Blvd. N .. Suite 101 .. Sarasota, Florida 34240 • (941) 907-0350 • FAX (941) 907-0309
MFMBFRS OF AMERICAN AND FL(JRIOA INoTITLJTF.S Of CfRTIFifO i'URI.IC ACCOUNTANTS
MfMRF.R OF AMERICAN 11--'STITl.lTE OF GRTIFIHJ PUBLIC ACCOl ''-iT ANTS PRIVATE COMPANIES ANO S.f.C PRACTICE SFCTIOK!,
66
DRAFT
GPurvis
ray~ ____________________ C_om_P-any
MANAGEMENT LETTER
Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
Atlantic Beach, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Atlantic Beach, Florida (the City) as of and for the
year ended September 30,2015, and have issued our report thereon dated _____ _
Auditors' Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Perfonned in Accordance
with Government Auditing Standards, and Independent Accountants' Report on an examination conducted
in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in
accordance with Chapter I 0.550, Rules of the Auditor General. Disclosures in those reports and schedule,
which are dated , should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
report. There were no recommendations made in the preceding annual financial repott.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This information is included in
Note 1 to the financial statements.
Financial Condition
Section 10.554(1)(i)5.(a), Rules of the Auditor General, requires a statement to be included as to whether or
not the local government entity has met one or more of the conditions described in Section 218.503(1),
Florida Statutes, and identification of the specific conditions met In connection with our audit, we
detennined that the City did not meet any of the conditions described in Section 218.503(1), Florida
Statutes.
Certified Public Accountants
P.O. Box 141270 • 222 N.E. 1st Street • Gainesville, Florida 32614-1270 "(352) 378-2461 • FAX (352) 378-2505
Laurel Ridge Proiessional Center .. 2347 S.E. 17th Street .. Ocala, Florida 3447"1 • (352) 732-3872 • FAX (352) 732-0542
. 443 East College Avenue • Tallahassee, Florida 32301 • (850) 224-71 44 ~ FAX (850) 224-1 762
5001 Lakewood Ranch Blvd, 1~., Suite 101 • Sarasota, Florida 34240 • (941) 907-03.50 • FAX (941) 907-0309
ML~\B[RS OF AMlRi\At-; AND ~LORIDA />;Sl/TUHS Or O:Rrtr!EO PUUL!C ACCOUNTANTS
ML~llJER Of AMERICA!~ /.\;STIT\JTE or C[I{Tif"I[LJI'UB!.Il ACCOUNTANTS PRI\'AH COMPANIES A',_.) S.LC. PRACT!G SlCT/01\S
67
DRAFT
Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
At,lantic Beach, Florida
Financial Condition (Concluded)
MANAGEMENT LETTER
(Concluded)
Pursuant to Sections 10.554(l)(i)5(c) and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City's financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by same.
Annual Financial Report
Section 10.554(1)(i)5.(b), Rules of the Auditor General, requires that we detennine whether the annual
financial repmt for the City for the fiscal year ended September 30, 2015, filed with the Florida Department
of Financial Services pursuant to Section 218.32(l)(a), Florida Statutes, is in agreement with the annual
financial audit report for the fiscal year ended September 30, 2015. In connection with our audit, we
determined that these two reports were in agreement.
Special District Component Units
Section 10.554(1)(i)5.(d), Rules of the Auditor General, requires that we determine whether or not a special
district that is a component unit of a county, municipality, or special district, provided the financial
infmmation necessary for proper reporting of the component unit, within the audited financial statements of
the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In
connection with our audit, we determined that there were no special district component units that were
required to be reported in accordance with Section 218.39(3)(b), Florida Statutes.
Other Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any
recommendations to improve financial management. In connection with our audit, we did not have any
such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that
have an effect on the financial statements that is less than material but which warrants the attention of those
charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the infmmation and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, and applicable management, and is not intended to be and
should not be used by anyone other than these specified patties.
We wish to take this oppmtunity to thank you and your staff for the cooperation and courtesies extended to
us during the course of our audit. Please let us know if you have any questions or comments conceming this
letter, our accompanying reports, or other matters.
Gainesville, Florida
68
C ITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM 3A
JUNE 2 7, 2016
AGENDA ITEM:
SUBMITTED BY:
DATE:
Waiver# 16-SAFW -97
Jeremy Hubsch, Building and Zoning Dire ctor ~
June 2, 2016
STRATEGIC PLAN L I NK: None
BACKGROUND: The City of Atlantic Beach is initiating a waiver request at 535 Atlantic Boulevard
as the result of conditions agreed upon by the applicant (Gate Petroleum) of Preliminary Site
Development Plan, 15-CVPR-2411 during an appeal on May 12, 20 16. D uring the appeal process, an
appellant (Beach Diner) alleged that the applicant was not providing sufficient parking. Gate agreed to
provide 30 spaces for the restaurant, which is more than required by City Code. H owever, in order to
provide the additional parking, Gate needs relief from other code standards. At the appeal hearing, the
City Commission approved a final order requiring that the City i11i tiate waiver applications to allow an
increase in impervious surface from 70% up to a maximum of 78% and to eliminate terminal tree islands
from four locations on site.
The specific code provisions that require waivers are Sections 24-111 (g) ( 1) and 24-177 (c) ( 4 ). Section
24-111 (g) (1) has a maximum allowance of 70% impervious surface coverage. The applicants need
additional impervious surface coverage in order to provide additional parlcing for Beach Diner. They are
seelcing a maximum of up to 75% impervious surface coverage on site, which is 3% less than allowed by
the ordeL T he other provision needing a waiver is Section 24-177 (c) (4) of the landscape code. This code
provision requires a landscape island at the end of parking rows. In order to provide more parking for the
Beach Diner, the applicant is seeking a reduction from this standard. It is worth noting that Section 24-
177 (c) (5} states, "If it can be shown to the satisfaction of the community development director that the
strict application of this section will seriously limit the use of the property, the community development
director may approve the location of the required interior landscape area near the perime ter of the VUA or
adjacent to the building on the property, so long as the landscape area is within twenty (20) feet of the
perimeter of the VUA." The applicants are providing substantially more landscaping throughout the site,
particularly around the perimeter of the site. Based on this, it is quite possible that a waiver may not even
be needed for the landscape islands. However, in an abundance of caution, the City js still initiating the
waiver based on the final order of the May 12th appeal.
BUDGET: None.
RECOMMENDATION: To h o ld a P ublic Hearing on June 27,2016 to Approve Waiver
# 16-SAFW -97
ATTACHMENTS : Waiver Application, 15-CVPR-2411 Appeal Order; Beaches
Leader notice; mailers to adjacent property owners; pictures of signs
REVIEWED BY CITY MANAGER:
~Va..,~~
AGENDA ITEM 3A
JUNE 27,2016
B. That no error was made by the Community Development Director in the approval
of Site Development Plan, 15CVPR-2411.
NOW, THEREFORE, it is ORDERED by the City Commission:
I. The approval of the Site Development Plan, 15CVPR-2411 IS hereby
CONFIRMED, as described in the City's approval dated February 9, 2016; and
2. The following modifications to the Site Plan as proposed by Gate Petroleum, Inc.
shall be incorporated into and made a part of the approval of Site Development Plan, 15CVPR-
2411:
a. Thirty (30) parking spaces shall be dedicated for use by the tenant for the
operation of a restaurant located at 501 Atlantic Boulevard;
b. The two access points to Sturdivant Avenue shall be limited to "ingress/
entrance" only with signage to prohibit any egress;
c. Except as provided in Section 2(i) below, plans to be submitted shall be
consistent with the Enhanced Landscaping Plan, dated February 22, 20 16
(attached hereto as Exhibit A), with due consideration for any "line of sight"
issues;
d. Except as provided in Section 2(i) below, plans to be submitted shall be
consistent with the Architectural Renderings, dated February 17, 2016
(attached hereto as Exhibit B);
e. The vacuum equipment shall be relocated to the Atlantic Boulevard side of
the main structure;
f. Dumpster service shall occur between 7:00a.m. and 9:00p.m. only;
g. No outdoor speakers shall be permitted, except as required by law;
2
Copies furnished to:
T.R. Hainline, Esq.
Emily G. Pierce, Esq.
Rogers Towers, P.A.
1301 Riverplace Blvd., Suite 1500
Jacksonville, FL 32207
Jane West, Esq.
6277 AlAS., Suite 101
St. Augustine, FL 32080
Jeff Sneed, Esq.
599 Atlantic Blvd., Suite 6
Atlantic Beach, FL 32233
Paul Eakin, Esq.
599 Atlantic Blvd., Suite 6
Atlantic Beach, FL 32233
4
AGENDA ITEM 3A
JUNE 27, 2016
-om
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Enhanced Landscape Plans Exceed Code
GATE
February 22, 2016
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AGENDA ITEM:
SUBMITTED BY:
DATE:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Purchase of 54 East Coast Drive
Nelson VanLiere, City Manager t:2fCJ
June 16, 2016
AGENDA ITEM 38
JUNE 27, 2016
This Agenda item will be amended the middle of next week with additional information
including a sample parking layout and some cost projections as well as information on how this
can be accomplished. This additional information will be included in an amended agenda packet
by Wednesday afternoon.
Attached is the previous staff report for informational purposes.
AGENDA ITEM:
SUBMITTED BY:
DATE:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Purchase of 54 East Coast Drive
Nelson VanLiere, City Manager c;;?O
June 1, 2016
AGENDA ITEM 3B
JUNE 27, 2016
BACKGROUND: Recently, it was brought to the City's attention that the property located at
54 East Coast Drive is for sale. Being that this property is strategically located just a short
walking distance from our Town Center Business District, I wanted to put forth the topic of the
purchase of this property for discussion. The public purpose for the acquisition would be to
provide much needed parking to the business district. Discussion points would include the
following information:
• The need for public parking in the area.
• The acquisition price is $1,200,000. These funds are available in the General Fund
unrestricted fund balance. A budget ordinance would have to be passed to fund the
purchase.
• The lot is 130ft by 150ft or 19,500 sq feet.
• Changing the current zoning from RG-M to something that a commercial parking lot
would be allowed.
• Current taxes are approximately $6,000/year, but would increase due to sale of the
property. If the City acquires the property, there will be no taxes received.
• To develop the site as a parking lot could cost $100,000 to $150,000 depending on how it
is constructed.
• The number of spaces created would depend on stormwater drainage requirements; a
desire to keep some of the trees and the organization of the spaces chosen.
Approximately 50 spaces may be configured.
• The possibility of making it a paid parking lot to recover the costs over time.
BUDGET: The immediate budget impact would be to increase the budget by $1,200,000 plus
closing costs and the cost of razing the existing structure. Subsequently, the City would incur
cost to make the property useful as a parking lot.
RECOMMENDATION: Upon reaching a consensus of the City Commission, direct the City
Manager and City Attorney to negotiate a purchase agreement for 54 East Coast Drive for City
Commission approval and direct staff to prepare an ordinance amending the operating budget to
fund the estimated costs of acquisition.
ATTACHMENTS: COJ Property Appraiser parcel information on 54 East Coast Drive
Atlantic Beach Zoning Map
Aerial Photo of 54 East Coast Drive
General Fund Long Term Financial Projection of2016
Photo of House
City of Atlantic Beach
Long Term Financial Plan Projection Summary
General Fund
Actual Actual Estimate Budget Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj.
FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23 FY-24 FY-25
Cash Balance Forward 5,999,741 6,178,222 6,522,475 6,603,516 6,603,516 6,109,072 5,842,229 5,652,023 5,759,464 5,959,845 6,499,296 7,052,613 8,082,327
Revenues
Taxes 5,069,752 5,044,296 5,191,889 5,489,037 5,697,169 5,913,284 6,137,692 6,370,712 6,612,680 6,863,941 7,124,856 7,395,799 7,677,159
Licenses and Permits 830,708 863,978 880,975 903,350 930,351 958,159 986,800 1,016,298 1,046,678 1,077,968 1,110,195 1,143,386 1,177,570
Intergovernmental Revenues 1,567,424 1,634,354 1,686,170 1,779,142 1,832,284 1,887,020 1,943,398 2,001,467 2,061,279 2,122,885 2,186,339 2,251,696 2,319,015
Charges for Services 2,161,325 2,200,952 2,328,435 2,259,665 2,326,196 2,394,707 2,465,259 2,537,913 2,612,730 2,689,776 2,769,118 2,850,824 2,934,965
Fines and Forfeitures 224,294 93,469 82,320 82,000 84,460 86,994 89,604 92,292 95,060 97,912 100,850 103,875 106,991
Miscellaneous Revenues 280,707 301,347 179,293 163,731 145,303 139,173 136,494 135,004 111,626 113,070 114,556 116,085 57,659
lnterfund Transfers 975,454 1,066,503 999,210 1,045,874 1,071,487 897,776 1,118,766 1,146 291 1,174 548 1 203,556 1,233,335 1,263,376 1,313,362
Total Revenues 11,109,664 11,204,899 11,348,292 11,722,799 12,087,248 12,277,113 12,878,012 13,299,977 13,714,601 14,169,108 14,639,248 15,125,041 15,586,722
Other Financing Sources
Total Resources 17,109 405 17,383,121 17,870,767 18,326,315 18 690 765 18,386,186 18,720,241 18,952,000 19,474 065 20 128,953 21138,544 22177,654 23 669 049
Expenditures by Department
Governing Body 40,225 38,324 41,315 40,384 40,892 41,412 41,939 42,476 43,022 43,577 44,141 44,715 45,298
City Administration 2,363,786 2,487,038 2,508,734 2,418,498 2,812,328 2,584,362 2,844,004 2,792,896 2,824,837 2,870,576 2,922,650 2,885,531 2,972,051
Planning and Zoning 151,766 116,794 250,710 149,364 157,616 163,604 166,911 171,171 175,774 179,709 182,909 178,355 184,513
Public Safety 4,916,804 5,011,182 5,167,154 5,767,701 6,079,112 6,200,279 6,337,681 6,498,419 6,594,943 6,642,625 6,967,675 6,995,852 7,027,688
Public Works-Streets 1,457,343 1,658,766 1,546,301 1,572,712 1,663,247 1,692,076 1,714,148 1,694,462 1,803,183 1,807,634 1,830,530 1,838,226 1,896,722
Parks and Recreation 1,035,707 1,159,263 1,271,066 1,286,900 1,331,771 1,350,594 1,436,358 1,450,601 1,491,928 1,511,289 1,548,436 1,555,095 1,605,742
General Government 782,697 389 280 481,971 487,240 496 726 511,629 527,176 542 511 580,534 574,246 589,590 597,553 616,629
Total Expenditures 10,748,328 10,860,646 11,267,251 11,722,799 12,581,692 12,543,957 13,068,217 13,192,536 13,514.220 13,629,656 14,085,931 14,095,327 14,348,643
Revenues Less Expenditures 361,336 344,253 81,041 0 -494,444 -266,844 -190,205 107,440 200,381 539,452 553,317 1,029,715 1,238,078
Other Financing Uses 182,855
Total Cash Reserves 6,178,222 6,522,475 6,603,516 6,603,516 6,109,072 5,842,229 5,652,023 5,759,464 5,959,845 6,499,296 7,052,613 8,082,327 9,320,406
Restricted Cash 2,842,745 2,589,502 2,657,904 2,836,042 2,923,853 2,998,196 3,088,386 3,150,151 3,226,447 3,292,379 3,384,299 3,406,334 3,474,163
Unrestricted Cash 3,335,478 3,932,974 3,945,613 3,767,474 3,185,219 2,844,033 2,563,637 2,609,313 2,733,398 3,206,917 3,668,314 4,675,993 5,846,242
Total Exp. & Cash Reserves 17,109,405 17,383,121 17,870,767 18,326,315 18,690,765 18,386,186 18,720,241 18,952,000 19,474,065 20,128,953 21,138,544 22,177,654 23,669,049
Resource Allocation
l> Personnel Services 7,002,341 6,889,650 6,820,003 7,453,033 7,655,611 7,849,166 8,071,989 8,207,282 8,368,226 8,512,742 8,742,821 8,689,504 8,815,390 .... G')
Operating 3,168,637 3,468,357 3,811,612 3,891,136 4,039,801 4,143,617 4,281,556 4,393,322 4,537,561 4,656,773 4,794,374 4,935,832 5,081,263 c m
Capital Outlay 546,350 502,639 635,636 378,630 886,280 551,173 714,673 591,933 608,433 460,141 548,736 469,990 451,990 2 2 m c Transfers Out 31,000 0 0 0 0 0 0 0 0 0 0 0 0 N l> .:..a ::::j Total Expenditures 10 748 8 10,860,646 11,267 251 11 722,799 12,581 692 12,543,957 13,068,217 13 192,536 13,514 220 13,629,656 14 085,931 14,095 327 14 348,643 N m
139 0 s: ~ en w
lXI
AGENDA ITEM:
SUBMITTED BY:
DATE:
BACKGROUND:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Purchase of 54 East Coast Drive
Nelson Van Liere, City Manager 6?
June 22, 2016
This is additional information to supplement the previously provided staff report.
A list of cost items to develop a parking lot would include the following:
Capital Investment
Drawings and Surveys
Site Cleaning
Site Prep
Landscaping
Sidewalk Repair
Paving/pavers
Stripping
Wheel stops and signs
Fencing/wall
Stucco
Lighting
General conditions and GC fee
Contingency
Total
$11,000
10,000
7,500
10,000
2,500
60,000
500
4,500
12,000
4,000
20,000
20,000
20,000
$182.000
Annual Maintenance
Landscaping
Electricity
Water
Kiosk Maintenance
Monitoring
Total
AMENDED ITEM 38
JUNE 27, 2016
$7,200
5,000
2,000
2,000
in-kind
$16.200
Conservative revenue projections include an estimate of days not used and days that will have
multiple turnover of spaces as well as different projections of revenue with different pricing.
These are summarized as follows:
Case 1-$3.00 Mon-Wed and $5.00 Thur-Sun
Revenues $54,880
Expenses -16,200
Net $38.680
Case 2 -$1.50 Mon-Wed and $3.00 Thur-Sun
Revenues $32,550
Expenses -16,200
Net $16.350
Case 3-$5.00 Mon-Wed and $10.00 Thur-Sun
Revenues $98,700
Expenses -16,200
Net $82.500
AMENDED ITEM 38
JUNE 27, 2016
Additional Information:
To proceed with this project, the Commission will need to commit to an agreement to purchase
the property for $1,200,000.
Purchase Price
Site Development
Total Investment
$1,200,000
200,000
$1,400,000
Less Private Contribution
Less Other Contributions
Total Outside Sources
< $100,000>
< 75 000>
< $175,000>
Net Investment $1.225.000
Notes:
• The other interested party has committed to guaranteeing the valuation if the price
exceeds the appraised value, he will make up the difference.
• The other party will contribute $100,000 towards the creation of the parking lot and has a
good indication that he may be able to secure an additional $75,000.
• The City will have complete control of the lot if owned as long as the need exists. It may
of course be reverted back to its present status in the future if the parking lot does not
work out.
• The General Fund has funds above restricted reserves available. This transaction would
reduce the cash balance for the purchase price and replace it with an investment in
income producing land. A better investment for the City than cash.
• This could become the cornerstone of a more extensive parking program for Town
Center. The City has met numerous times with the Beaches Town Center to try to find
ways to alleviate the parking problems. There have been few solutions that would make
as big an impact as this proposal.
• The existing "Dirt Parking Lot" that is in the same area is not within the City's control.
This has been a parking lot for years without any formal designation as such. The status
of this lot could change at anytime depriving citizens of much needed spaces.
• The trees on the parcel are mostly on the perimeter. We would be taking down at least
one large tree depending on final design. The configuration of the lot would be more
specific if we go forward. In my opinion, a treed parking lot would make a better
transition into the neighborhood than a multi-story townhome.
• The alternative scenario is that the lot is developed as 3 townhomes with a value of $1.5
million each. This equates to about $14,300 in tax revenue to Atlantic Beach for the
entire site.
• Interest rates are very low for conservative investments like those owned by the City.
Therefore, any funds derived by a paid parking lot would be more of a return than those
funds invested.
In Summary, We have a proposal to finally make a dent in the Town Center parking
problem for the benefit of our residents. The funding is available to invest, the
businesses in Town Center support it, there are no other lots available that better serve
this purpose and we can make this happen now. Residents and visitors have been
frustrated with the lack of parking for years. This project is a great way to help the
AMENDED ITEM 38
JUNE 27, 2016
residents who visit Town Center on a regular basis have a more positive experience for
years to come. The lot will cover its own costs and return some back to the General
Fund.
RECOMMENDATION:
To authorize the City Manager and City Attorney to negotiate a contract to
procure the property at 54 East Coast Drive and to include the commitment of the
existing buyer to contribute funds towards the project and bring that agreement back to
the City Commission for approval along with a Budget Ordinance for funding.
ATTACHMENTS:
Conceptual drawing of a proposed parking lot layout.
Photo of typical Kiosk
Revenue Projection details
AMENDED ITEM 38
JUNE 27, 2016
Ahern Lot Projections-Case 1
35 Spaces
Mon Tues Wed Thurs Fri Sat Sun
$3.00 $3.00 $3.00 $5.00 $5.00 $5.00 $5.00
Jan 0 0 0 0 1 1 0
Feb 0 0 0 0 1 1 1
Mar 1 0 1 2 1 1 1
Apr 1 0 1 2 2 3 2
May 1 1 1 2 2 3 2
June 1 1 1 2 2 3 2
July 1 1 1 2 2 3 2
Aug 1 1 1 2 2 3 2
Sept 0 0 0 0 1 1 1
Oct 0 0 0 0 1 1 1
Nov 0 0 0 1 1 1 1
Dec 0 0 1 1 1 1 1
Mon Tues Wed Thur Fri Sat Sun Per week x4 weeks per month
(48 weeks)
Jan $0 $0 $0 $0 $105 $105 $0 $ 210 $ 840
Feb $0 $0 $0 $0 $175 $175 $175 525 2,100
Mar $105 $0 $105 $350 $175 $175 $175 1,085 4,340
Apr $105 $0 $105 $350 $350 $525 $350 1,785 7,140
May $105 $105 $105 $350 $350 $525 $350 1,890 7,560
June $105 $105 $105 $350 $350 $525 $350 1,890 7,560
July $105 $105 $105 $350 $350 $525 $350 1,890 7,560
Aug $105 $105 $105 $350 $350 $525 $350 1,890 7,560
Sept $0 $0 $0 $0 $175 $175 $175 525 2,100
Oct $0 $0 $0 $0 $175 $175 $175 525 2,100
Nov $0 $0 $0 $175 $175 $175 $175 700 2,800
Dec $0 $0 $105 $175 $175 $175 $175 805 3,220
$ 54,880
J>
Annual Ex!:lenses .... 3:
100% 90% 80% 70% 60% Landscape $ 7,200 em zZ
Revenue $ 54,880 $ 49,392 $ 43,904 $ 38,416 $ 32,928 Electicity 5,000 mC Nm
Expenses 16,200 -16,200 -16,200 -16,200 -16,200 Water 2,000 ,:o-~C
$ 38,680.00 $ 33,192.00 $ 27,704.00 $ 22,216.00 $ 16,728.00 Kiosk Maintennce 2,000 N=i em
Monitoring(1) $ ~3:
$ 16,200.00 w
c::l
Note
{1) Lot to be monitored 4 or 5 times a week by existing staff.
Case 2
Mon Tues Wed Thurs Fri Sat Sun
$1.50 $1.50 $1.50 $3.00 $3.00 $3.00 $3.00
Jan 0 0 0 0 1 1 0
Feb 0 0 0 0 1 1 1
Mar 1 0 1 2 1 1 1
Apr 1 0 1 2 2 3 2
May 1 1 1 2 2 3 2
June 1 1 1 2 2 3 2
July 1 1 1 2 2 3 2
Aug 1 1 1 2 2 3 2
Sept 0 0 0 0 1 1 1
Oct 0 0 0 0 1 1 1
Nov 0 0 0 1 1 1 1
Dec 0 0 1 1 1 1 1
Mon Tues Wed Thur Fri Sat Sun x4 weeks per month
Per week {48 weeks)
Jan $0 $0 $0 $0 $105 $105 $0 $210 $ 840
Feb $0 $0 $0 $0 $105 $105 $105 $315 1,260
Mar $53 $0 $53 $210 $105 $105 $105 $630 2,520
Apr $53 $0 $53 $210 $210 $315 $210 $1,050 4,200
May $53 $53 $53 $210 $210 $315 $210 $1,103 4,410 l>
June $53 $53 $53 $210 $210 $315 $210 $1,103 4,410 ..... s: c:rn
July $53 $53 $53 $210 $210 $315 $210 $1,103 4,410 zZ rnC
Aug $53 $53 $53 $210 $210 $315 $210 $1,103 4,410 Nrn ,:--~0
Sept $0 $0 $0 $0 $105 $105 $105 $315 1,260 N=i orn
Oct $0 $0 $0 $0 $105 $105 $105 $315 1,260 ~s:
w
c:J
Nov
Dec
Note
(1)
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
$0
$0
Revenue
Expenses
$
$
$0
$0
100%
32,550
16,200 -
16,350.00
$
$
$0
$53
90%
29,295
16,200 -
13,095.00
$
$
$105
$105
80%
26,040
16,200 -
9,840.00
Lot to be monitored 4 or 5 times a week by existing staff.
Case 3
Mon Tues Wed Thurs
$5.00 $5.00 $5.00 $5.00
0 0 0 0
0 0 0 0
1 0 1 2
1 0 1 2
1 1 1 2
1 1 1 2
1 1 1 2
1 1 1 2
0 0 0 0
0 0 0 0
0 0 0 1
0 0 1 1
$
$
$105
$105
70%
22,785
16,200 -
6,585.00
Fri
$10.00
1
1
1
2
2
2
2
2
1
1
1
1
$
$
$105
$105
60%
19,530
16,200
3,330.00
Sat
$10.00
1
1
1
3
3
3
3
3
1
1
1
1
$105
$105
Sun
$10.00
0
1
1
2
2
2
2
2
1
1
1
1
$420
$473
Annual ExQenses
Landscape
Electicity
Water
Kiosk Maintenanc
Monitoring(1)
1,680
1,890
$ 32,550
$ 7,200
5,000
2,000
2,000
$
$ 16,200
l> .... s:
em zZ
mO
Nm
........ 0
N :::::j
0 m
~ s: en w
aJ
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Automation of Gates at Dutton Island and Tideview Parks
DATE: June 14, 2016
SUBMITTED BY: Donald D. Jacobovitz, P.E., Public Works Director
AGENDA ITEM 3C
JUNE 27,2016
BACKGROUND: The Dutton Island and Tideview Parks have many users at sunset and
beyond. In the case of Dutton Island, the night time users are campers. In
the case ofTideview, the sunset time frame users are those that fish off the
deck, remove kayaks at the launch site, or observe the sunset. City Park
Rangers are tasked with checking for unauthorized users being in either
park after hours. Each park closes one hour after sunset.
After performing checks of each park, the Park Rangers inform all users
they find to leave the park by one hour after sunset. Park Rangers are
tasked to lock the gates at each park one hour after sunset. If users are still
in the parks after sunset (except for authorized campers in Dutton Island
Park), the Park Rangers leave the gates unlocked and inform the Police
Department (PD). The PD will check the park later and will roust any
unauthorized users and lock the gates.
Sometimes users are locked in either park by the Park Rangers because
they could not find these individuals when it was time to lock the gates.
Another problem is that the closing time changes when the time of sunset
changes. This creates confusion with users and scheduling problems for
the Park Rangers. The later closing hours during the summer causes more
overtime and less daylight park service availability.
There are three options available for solutions to the gate problems at
these parks. The first solution is to not close the gates at night and let
these parks operate like the other City parks. The second solution is to
leave the situation as it is. The third solution is to install automatic gates
at these parks that would close automatically at a designated time.
The first solution would be acceptable if the City Commission deems it
appropriate for the users of these parks. This solution frees up the Park
Rangers from their end of day gate-locking task.
The second solution continues the problems the City currently has, i.e., it
creates later hours for Park Rangers, it removes them from daylight park
service, it requires more overtime pay, it creates confusion among the park
users as to what time the parks actually close, it sometimes leads to park
BUDGET:
AGENDA ITEM 3C
JUNE 27, 2016
users being locked in a park with arrangements having to be made to let
them out, and it puts Park Rangers in w1safe situations as they try to find
and roust park users in the dark.
The third solution provides an automated, unmanned closing of each park
with the ability to allow users to leave each park if they are inadvertently
locked in. Sensors would open ga tes fo r departures without allowing
ingress to the parks after they are closed. D utton Island campers would be
given pass codes to allow them afterhours access to the park. These codes
would be erased after their camping use is completed. Gates can be
monitored or adjusted remotely. It allows Park Rangers to perform more
daytime duties at these parks while reducing overtime costs without
placing Park Rangers in unsafe conditions. It also reduces caJls to the PD
to check these parks at closing and to lock the gate s.
First Option:
Section Option:
Third Option:
No Cost
No Cost (other than the
regular operational
expenses the City already
incurs)
$25,000
(The cost to purchase one ann, light-weight, automated gates with their
associated hardware and to install them is a pproximately $8,000 to
$11 ,000 each. The cost to provide electtical service to the Tideview gate
area is approximately $3,000. The total cost for automating these gates is
estimated to be $25,000. New signage at each park could also be erected
at each park's gate entrances for approximately $500 each.
RECOMMENDATION: Staffs recommendation i s Option 1, i.e., to not lock the gates at
each park, but to l eave them in place in case a decision requires them to be
locked in the futw-e . This does not cost anythin g and r equires no checking
on the part of City staff each night. It does not place Park Rangers in an
unsafe situation, reduces overtime, and allows Park Rangers to provide
more daytime park service when more users are in the parks.
REVIEWED BY CITY MANAGER: ~ U -d%7 dfu.e
...
City of Atlantic Beach AGENDA ITEM 4A
FINANCIAL REPORT JUNE 27,2016
May 2016
Cash Balances
Prior Current Dollar Percent
Fund(s) 04/30/16 05/31/16 Change Change
General $ 8,885,074 $ 7,880,820 $ (1 ,004,253) -11.30%
Tree Replacement 26,470 26,470 0.00%
Convention Development Tax 107,556 99,758 (7,798) -7.25%
Local Option Gas Tax 326,658 351,534 24,876 7.62%
Better Jax 1/2 Cent Sales Tax 606,550 647,324 40,775 6.72%
Police Training, Forfeiture, Grants, etc. 129,555 140,036 10,481 8.09%
Capital Projects 3,088,792 3,711,999 623,207 20.18%
Utility 6,363,165 6,374,379 11,214 0.18%
Sanitation 461,474 464,355 2,881 0.62%
Building Code Enforcement 458,231 464,266 6,034 1.32%
Storm Water 1,760,847 1,794,452 33,605 1.91%
Pension -Police 143,312 156,865 13,553 0.00%
Pension -General 67965 88,759 20 794 30.59%
Total $ 22,425,649 $ 22,201,017 $ (224,631) -1.00%
Total Restricted Cash 7,231,593
Total Unrestricted Cash $14,969,424
Cash and Investments
Prior Current Dollar Percent
Account 04/30/16 05/31/16 Change Change
Bank of America -Depository $ 6,521,310 $ 6,268,325 $ (252,985) -3.88%
Delaware Limited-Term Diversified Inc A 2,523,445 2,526,878 3,433 0.14%
Global X Gold Explorers ETF 4,188,064 4,210,115 22,051 0.53%
lnvesco Floating Rate A 737,571 743,422 5,852 0.79%
Voya Short Term Bond Fund Class A 4,189,925 4,186,932 (2,994) -0.07%
MSSB Money MarkeUCash 4,239,314 4,239,314 0.00%
SBA -Florida Prime 22,869 22,880 12 0.05%
Cash on Hand 3,150 3,150 0.00%
Subtotal $ 22,425,649 $ 22,201,017 $ (224,631) -1.00%
Police Pension Investments $ 8,918,469 $ 9,007,677 $ 89,208 1.00%
General Pension Investments 15,620,319 15,800,290 179 971 1.15%
Subtotal $ 24,538,788 $ 24,807,967 $ 269,179 1.10%
Total $ 46,964,435 $ 47,008,984 $ 44,548 0.09%
AGENDA ITEM 4A
JUNE 27, 2016
City of Atlantic Beach
FINANCIAL REPORT
May 2016
Revenues
Annual YTD YTD Dollar
Fund I (Footnote) Estimate Estimate Actual Variance
General $ 11,762,799 $ 7,841,584 $ 9,105,833 $ 1,264,249
Convention Development Tax 96,307 64,192 60,156 (4,036)
Local Option Gas Tax 461,611 307,736 309,611 1,875
Better Jax 1/2 Ct Sales Tax 790,128 526,744 539,593 12,849
Police Training, Forfeiture & Grants 89,150 64,648 61,923 (2,725)
Grants -CDBG 650,000 433,328 (433,328)
Capital Projects 855,000 685,044 1,121,230 436,186
Utility 8,335,711 5,557,032 5,709,206 152,174
Sanitation 1,840,330 1,226,872 1,303,519 76,647
Building Code Enforcement 439,134 292,728 338,890 46,162
Storm Water 875,708 583,800 622,664 38,864
Pension -Police 1,530,544 1,020,352 1,069,275 48,923
Pension -General 2,336,217 1,557,472 1,809,090 251,618
Total $ 30,062,639 $ 20,161,532 $ 22,050,990 $ 1,889,458
Analysis of Major Variances
In general, the major variances are created when the actual funds received-to-date are
different from the percentage of the budget elapsed-to-date. Highlighted variance explanations
follow:
General Fund revenues show a net positive variance of $1,264,249. Most of this variance
is due to the timing of receipt of ad valorem taxes, the majority of which are received in
December.
Grant Funds reflected a negative variance of $433,328, Grant revenue is reimbursement
based, revenue was billed in April and will be collected in May.
Capital Project Fund reflected a positive variance of $436,186. This variance is a result of
a mid year budget modification and subsequent transfer of funding to the Public Safety
Building Project.
Percent
Variance
16.12%
-6.29%
0.61%
2.44%
-4.22%
-100.00%
63.67%
2.74%
6.25%
15.77%
6.66%
4.79%
16.16%
9.37%
City of Atlantic Beach AGENDA ITEM 4A
FINANCIAL REPORT JUNE 27, 2016
May 2016
Project Activity-Current Year Activity Only
Project YTD YTD
Project Name Number Budget Actual Encumbrances Balance Status
General Government
RUSSELL PK RENOVATION PM1501 $ 233,180 $ 61,844 $ 5,980 $ 165,356 I
DONNER PK PLAYGRND LIGHTS PM1503 6,500 6,146 354 E
BULL PK PLAYGRND EQUIPMT PM1504 35,000 5,300 (0) 29,700 I
DUTION ISLE RD IMPROVMENT PM1505 25,000 7,386 17,234 380 E
NEW POLICE BLDG-DES/CONST PS1501 3,601,967 69,881 3,532,086
SALTAIRISTURDIVAN SIDEWLK PW1406 32,090 2,080 2 30,008 I
SEMINOLE STREET SCAPE 1 PW1407 258,092 7,684 11,383 239,025 D
MARSH PROJECT PED PATH PW1408 56,504 12,075 44,429 1 I
BIKE RACKS & STREET LIGHT PW1501 6,789 6,789 I
CH PARK LOT LIGHTS-LAST PW1504 9,554 9,554 (0) I
TOWNCENTER IMPR DECK & BR PW1601 40,000 40,000 E
VET PARK PLAYSET PW1602 40,000 40,000 E
MARSH PRESERVE PATH PHZ-1 PW1603 540,000 820 458,840 80,340
Subtotal $ 4,884,676 $ 189,559 $ 4,069,954 $ 625,163
Planing, Zoning & Building
FRANCIS AVE DRAINAGE IMPR PW1502 650,000 145,155 492,942 11,903
Subtotal $ 650,000 $ 145 155 $ 492,942 $ 11,903
Public Works:
SEMINOLE STREET SCAPE 1 PW1407 $ 13,487 $ 12,807 $ 680 $ 0 D
SAL TAIR DRAINAGE UPGRADE PW1411 61,707 4,000 (2) 57,709 I
SE SEMINOLE RD DRAIN IMPR PW1412 650,000 650,000 D
Subtotal $ 725194 $ 16 807 $ 678 $ 707 709
Public Utilities:
INLINE VALVE INSTALLATION PU1404 $ 16,355 $ 16,253 $ $ 102 D
EFFLUENT OUTFALL REPLCMT PU1408 2,625 3,653 (1,028) I
WELL LOGGING-6 WELLS PU1501 130,000 130,000 s
UPDATE MODELS PU1502 23,442 16,831 6,611 I
EFF OUTFALL @ SHERMAN PT PU1504 320,000 64 319,936 I
WETWLL LINE-MIM COVE LS PU1505 13,954 13,954 (0) I
WETWELL LINE-FAIRWAY V LS PU1506 14,141 14,141 0 I
NORTH FENCE REPLACE WTP2 PU1601 10,000 9,295 705 E
SOFT STARTS -WTP1, 2 &3 PU1602 48,000 552 (1) 47,449 A
CHLORINE AUTO CONTROL VAL PU1603 31,000 356 23,441 7,202 A
CONTROL BUBBLER SYSTEM PU1604 15,000 172 14,828 A
REPLACE SEASPRAY H20 SERV PU1605 100,000 97,339 2,661 A
ATLANTIC WATER MAIN REPLA PU1606 100,000 100,000 E
SEWER SYSTEM REHAB SEAOAT PU1607 200,000 200,000 E
CONTROL PANEL LIFT STA WW PU1608 19,000 218 13,853 4,929 A
SOFTSTARTS LIFT ST. ABC&D PU1609 55,000 6,310 13,821 34,869 A
2 POINT REP. EFF GRAV ICW PU1610 30,000 30,000 E
PHORPHOROUS TREATMENT FAG PU1611 225,000 17,658 7,174 200,167 I
REPLACE DISKS KRUGER DISF PU1612 6,000 5,999 1 A
INFLUENT SCREENS (2) PU1613 20,000 230 0 19,770 A
REPLACE EFF PUMP #2 PU1614 50,000 575 0 49,425 A
REPLACE RAS PUMP & MOTOR PU1615 50,000 575 49,425 A
REPLAC INFLUENT PUMP WWTP PU1616 22,000 253 21,747 A
SEMINOLE STREET SCAPE 1 PW1407 705,395 5,123 11,247 689,025 D
Subtotal $ 2,206,912 $ 181,457 $ 103,213 $ 1,922,242
Total $ 8,466,782 $ 532,977 $ 4,666,787 $ 3,267,018
Status Key
A -Bid/RFP Advertised I -Project In-progress
B -Bid Awarded N -Complete/Non-Capital
C -Project Completed R-Re-budget Next Fiscal Year OR Re-Evaluated
D -Design Completed S -Staff Researching
DE -Deferred X -Project Cancelled
E -Design Phase
1 -Seminole Road Street Scape Project totals $976,974
Interlocal Agreement
for Use of Property Tax Collections to Fund
Exemption Audit Services
AGENDA ITEM 48
JUNE 27, 2016
THIS AGREEMENT is made and entered into as of the "Effective Date" defined below,
and is by and among the DUVAL COUNTY PROPERTY APPRAISER ("PROPERTY
APPRAISER"), DUVAL COUNTY TAX COLLECTOR ("TAX COLLECTOR"), and the
CITY OF ATLANTIC BEACH, FLORIDA, a municipal government under the laws of the State
of Florida (the "TAXING AUTHORITY"). This agreement shall hereinafter be referred to as the
"Interlocal Agreement."
WHEREAS, the PROPERTY APPRAISER is responsible under Florida law for the
administration of ad valorem property tax exemptions, including homestead exemption, and the
preparing and filing of tax liens for back taxes related to the removal of undeserved exemptions;
and
WHEREAS, the TAX COLLECTOR is responsible under Florida law for the collection
and distribution of ad valorem property taxes, including back taxes and tax liens, and associated
penalties, fees, and interest; and
WHEREAS, the TAXING AUTHORITY receives local property tax revenue to fund
essential public services; and
WHEREAS, the Parties to this Interlocal Agreement recognize that there may be property
owners on the Duval County tax roll claiming undeserved and/or fraudulent personal exemptions
from ad valorem property tax, such as the homestead exemption (hereinafter collectively referred
to as "Personal Exemptions"), which reduces property tax revenue or unfairly shifts the property
tax burden to other property owners; and
WHEREAS, the PROPERTY APPRAISER and TAX COLLECTOR intend to contract
with a duly procured third party vendor (the "Vendor") for audit services to identify properties
with undeserved Personal Exemptions for the purpose of collecting taxes due on those properties,
which funds would otherwise be unavailable to the TAXING AUTHORITY (hereinafter the
"Vendor Audit Agreement"); and
WHEREAS, the Vendor shall provide said audit services in exchange for the fee
established in the Vendor Audit Agreement, which fee consists of an amount subject to the
procurement process but shall in no event exceed twenty-eight percent (28%) of any tax,
penalties, and interest collected from tax liens filed by the PROPERTY APPRAISER on parcels
identified through a Vendor audit as not being entitled to Personal Exemption(s) (hereinafter, the
"Fee"); and
WHEREAS, the Fee shall be paid exclusively from the taxes, penalties, and interest
collected in relation to the removal of Personal Exemptions as a result of audits performed by the
Vendor, it being understood that said Fee: (a) shall not be payable from any current or future
taxes that have not yet resulted in a lien; (b) shall not be payable from any tax lien filed by the
PROPERTY APPRAISER as a result of the PROPERTY APPRAISER's discovery of an
1
AGENDA ITEM 48
JUNE 27, 2016
undeserved Personal Exemption; and (c) shall not constitute a pledge or general obligation of tax
funds or create an obligation on the TAXING AUTHORITY to appropriate or make monies
available for the purpose of this Interlocal Agreement; and
NOW, THEREFORE, the PROPERTY APPRAISER, TAX COLLECTOR, and the
TAXING AUTHORITY agree as follows:
TERMS
1. Vendor Audit Agreement. The parties acknowledge and agree that the Vend or Audit
Agreement is presently being procured by the PROPERTY APPRAISER and/or TAX
COLLECTOR, and shall set forth such terms and conditions associated with that procurement
process. Once executed, the Property Appraiser and/or Tax Collector shall deliver a true and
correct copy of the Vendor Audit Agreement to the TAXING AUTHORITY for its records. A
draft Vendor Audit Agreement is attached hereto as Exhibit A and incorporated herein by this
reference; however, the parties understand and agree that during the procurement process, the
draft Vendor Audit Agreement may be adjusted to provide for indemnification, insurance, and
other legal provisions, and shall provide for the Vendor's Fee in an amount not to exceed twenty-
eight percent (28%) of the collected lien resulting from the removal of the undeserved Personal
Exemption, and shall provide for the TAX COLLECTOR's administrative fee of two percent
(2%) of the collected lien resulting from the removal of the undeserved Personal Exemption.
The parties to this Interlocal Agreement agree that in no event shall the fees deducted from the
collected Personal Exemption lien payable to the TAXING AUTHORITY exceed thirty percent
(30%) (which is the sum of the TAX COLLECTOR's administrative fee and the maximum
potential fee payable to the Vendor), which cap is intended to be commensurate with the cap
established in the authorizing legislation in Ordinance 2016-168-E of the City of Jacksonville for
that respective taxing authority. Once the Vend or Audit Agreement is procured, executed, and
a copy delivered to the TAXING AUTHORITY, the PROPERTY APPRAISER and TAX
COLLECTOR agree that the Vendor Audit Agreement may not be subsequently amended
without the prior written approval of the TAXING AUTHORITY; however, the foregoing
condition does not apply to any annual renewals of the Vendor Audit Agreement so long as such
renewals are on the same terms and conditions as the original Vendor Audit Agreement and do
not extend the expiration date beyond April12, 2021.
2. Effective Date. This Interlocal Agreement shall become effective on the last date of
the following: (a) the date that all other taxing authorities in Duval County (to wit: the City of
Jacksonville, City of Jacksonville Beach, City of Neptune Beach, School Board of Duval
County, St. Johns River Water Management District, and Florida Inland Navigation District)
fully execute and deliver their respective interlocal agreements for this matter; (b) the date of
execution and delivery of a duly procured and executed Vendor Audit Agreement; and (c) the
complete signature and delivery of this Interlocal Agreement.
3. Authorization of Reduced Collections for Fee Payment:
As noted in section 1 above, the TAX COLLECTOR is also authorized to deduct an
additional two percent (2%) of the lien monies resulting from the removal of the undeserved
Personal Exemption collected as an administrative fee; the TAX COLLECTOR's administrative
2
AGENDA ITEM 48
JUNE 27, 2016
fee shall be paid exclusively from the taxes, penalties, and interest collected in relation to lien
associated with the removal of Personal Exemptions as a result of audits performed by the
Vendor, said administrative fee shall not be payable from any current or future taxes that have
not yet resulted in a lien, shall not be payable from any tax lien filed by the PROPERTY
APPRAISER as a result of the PROPERTY APPRAISER's discovery of an undeserved Personal
Exemption, and shall not be a pledge or general obligation of tax funds or create an obligation of
the TAXING AUTHORITY to appropriate or make monies available for the purpose of this
Interlocal Agreement. The TAX COLLECTOR shall distribute the remaining tax revenue after
deduction of Vendor's Fee and the TAX COLLECTOR'S administrative fee to the TAXING
AUTHORITY according to governing Florida law.
This Interlocal Agreement does not constitute a pledge or general obligation of ad
valorem taxation, or create any obligation on the TAXING AUTHORITY to appropriate or make
monies available for any tax year, and does not create the right in any party to compel the
exercise of the ad valorem taxing power of the TAXING AUTHORITY or any taxing authority.
The TAX COLLECTOR agrees, on no less than a quarterly basis, to provide to the
TAXING AUTHORITY an accounting of all tax proceeds collected pursuant to the Vendor
Audit Agreement, the Fees paid to Vendor, the administrative fees retained by the TAX
COLLECTOR, and the total funds distributed to the TAXING AUTHORITY and each taxing
authority. Within sixty ( 60) days of the Effective Date of this Interlocal Agreement, the
representatives of each party agree to meet to develop the format and content of the quarterly
reports, and also agree to meet at least annually (at a time or times to be determined by the
parties) to review the results ofthe Vendor Audit Agreement and this Interlocal Agreement. The
TAX COLLECTOR agrees to provide the TAXING AUTHORITY access to its records for
review and audit purposes.
4. Termination: This Interlocal Agreement shall automatically renew at the beginning of
the TAXING AUTHORITY's fiscal year (October 1) until such time as the Vendor Audit
Agreement is terminated or otherwise expires (it being understood, however, that the Vendor
Audit Agreement natural expiration date shall be no later than April12, 2021). Upon termination
or expiration of the Vendor Audit Agreement, this Interlocal Agreement automatically expires
except for such provisions as survive termination as further agreed herein.
Any taxing authority, including the TAXING AUTHORITY, may opt out of the
Interlocal Agreement provided it notifies the PROPERTY APPRAISER and TAX COLLECTOR
in writing at least ninety (90) days before the end of the taxing authority's fiscal year, and such
termination shall be effective upon the first day of the following fiscal year of such taxing
authority. Notwithstanding the foregoing, the parties recognize that the TAXING
AUTHORITY's fiscal year is October 1 through September 30, and as such, its fiscal year
commences before the municipal taxing authorities' respective fiscal years that commence
October 1. Accordingly, the TAX COLLECTOR and PROPERTY APPRAISER agree to give
the TAXING AUTHORITY written notice within ten (10) business days of any other taxing
authority's subsequent termination during the TAXING AUTHORITY's fiscal year. Upon receipt
of notice regarding such third party taxing authority's subsequent termination, the TAXING
AUTHORITY may elect, at its option, to terminate this Interlocal Agreement by written notice to
3
AGENDA ITEM 48
JUNE 27, 2016
written notice to be delivered to the PROPERTY APPRAISER and TAX COLLECTOR and to
be effective no later than December 31 of that fiscal year.
The parties acknowledge that, to the extent feasible, Vendor audit services shall not be
provided for any parcel in a specific tax district if any taxing authority in that tax district
subsequently withdraws from an agreement or memorandum of understanding for use of
property tax collections to fund exemption audit services.
Upon termination of this Interlocal Agreement, Fees for all tax liens collected from audits
completed by the Vendor in affected taxing authority districts up to the date of the notification of
termination shall be payable in accordance with the terms provided by the Vendor Audit
Agreement. Because tax liens may not be paid within the term of this Interlocal Agreement, the
authorization of reduced collections for Fee payment shall survive the termination of this
Interlocal Agreement as follows: the TAXING AUTHORITY's responsibility for payment of
the Fees for tax liens collected from audits completed by the Vendor pursuant to the Vendor
Audit Agreement during the term of this Interlocal Agreement shall terminate upon the earlier of:
(a) the collection and payment of all liens resulting from Vendor audits pursuant to the Vendor
Audit Agreement, or (b) such time as agreed to between the Vendor, the PROPERTY
APPRAISER, and the TAX COLLECTOR; provided, however, in no event shall Vendor be paid
for Fees for tax liens that have expired pursuant to section 95.091, Florida Statutes (providing for
the expiration of such liens within twenty (20) years from the date the lien was filed).
5. Severability: Should any provision, portion, or application of this Agreement be
determined by a court of competent jurisdiction to be illegal, unenforceable, or in conflict with
any applicable law or constitutional provision, or should future changes to Florida law conflict
with any portion of this Interlocal Agreement, the parties shall negotiate an equitable adjustment
in the affected provisions of this Interlocal Agreement with a view toward effecting the purpose
of this Interlocal Agreement, and the validity and enforceability of the remaining provisions,
portions, or applications thereof, shall not be impaired. If a future change to Florida law conflicts
with or preempts the entirety of this Interlocal Agreement, the Interlocal Agreement will be
immediately terminated.
6. Public Records: The parties are public agencies subject to Florida's public records
laws, including records retention, production, and confidentiality provisions. The PROPERTY
APPRAISER and TAX COLLECTOR agree to retain all records maintained by their agencies
and associated with the performance of this Interlocal Agreement in compliance with applicable
Florida records retention schedules, and to make all non-confidential or exempt records available
for inspection or copying upon request and in compliance with Florida's public records laws.
7. Liability: The PROPERTY APPRAISER retains sole discretion and authority to
grant, deny or remove exemptions, or file liens for undeserved Personal Exemptions in
accordance with Florida law. All legal costs involving appeals of the removal of Personal
Exemptions resulting from audits shall be the responsibility of the PROPERTY APPRAISER.
The TAXING AUTHORITY has no decision-making authority in relation to exemptions or liens
under this Interlocal Agreement and assumes no liability for any claims, damages, losses, or
expenses, direct, indirect or consequential, arising out of or resulting from the actions of Vendor,
the PROPERTY APPRAISER, or the TAX COLLECTOR under this lnterlocal Agreement or
4
AGENDA ITEM 48
JUNE 27, 2016
the Vendor Audit Agreement other than the payment of Vendor's Fees and the TAX
COLLECTOR'S administrative fee, as aforesaid.
8. Notice: Any notice required to be given under this Interlocal Agreement shall be
made in writing and sent by first class mail, postage paid, or by hand delivery to, the contact and
address for the party as it appears on the signatory page of this Interlocal Agreement.
9. Applicable Law: The terms and conditions of this Interlocal Agreement shall be
governed by the laws of the State of Florida.
10. No Third Party Beneficiaries: This Interlocal Agreement is for the sole benefit of the
parties hereto, and in no event shall this Interlocal Agreement be construed to be for the benefit
of any third party, nor shall any party be liable for any loss, liability, damages or expenses to any
person not a party to this Interlocal Agreement other than the Fees owed the Vendor pursuant to
the Vendor Audit Agreement.
11. Sovereign Immunity. Except as otherwise provided by Florida Law, neither the
execution of this Interlocal Agreement by the parties, nor any other conduct, action or inaction of
any of the parties relating to the Interlocal Agreement is a waiver of their respective sovereign
immunity.
12. Headings: Headings herein are for convenience of reference only and shall not be
considered in any interpretation of this Interlocal Agreement.
13. Conflicts. In the event of any conflict between this Interlocal Agreement and the
Vendor Audit Agreement, as among the TAX COLLECTOR, the PROPERTY APPRAISER,
and the TAXING AUTHORITY, the terms of this Interlocal Agreement shall control
notwithstanding any provisions to the contrary in the Vendor Audit Agreement.
14. Execution: The parties agree that this Interlocal Agreement may be signed in
counterparts and facsimile signature; the counterparts and facsimiles of which, when taken
together, shall comprise an entire and original Interlocal Agreement.
[Signatures continued on next page]
5
[Signature page to Interlocal Agreement
for Use of Property Tax Collections to Fund
Exemption Audit Services}
AGENDA ITEM 48
JUNE 27, 2016
IN WITNESS WHEREOF, the parties hereto have caused this Interlocal Agreement to be
executed by the proper officer of each, as of the date first written above.
PROPERTY APPRAISER:
JERRY HOLLAND
As PROPERTY APPRAISER
231 E. FORSYTH ST. SUITE 270
JACKSONVILLE, FL 32202
904-630-2014
jholland@coj .net
DATE: ______________________ __
APPROVED AS TO LEGAL FORM
For the Property Appraiser:
Signature: _______________________ _
Office of General Counsel
TAX COLLECTOR:
MICHAEL CORRIGAN
As TAX COLLECTOR
231 E. FORSYTH ST. SUITE 200
JACKSONVILLE, FL 32202
904-630-2087
mcorrigan@coj .net
DATE: _____________________ __
APPROVED AS TO LEGAL FORM
For the Tax Collector:
Signature: ________________________ __
Office of General Counsel
[Signatures continued on next page]
6
[Continued signature page to Inter local Agreement
for Use of Property Tax Collections to Fund
Exemption Audit Services]
AGENDA ITEM 48
JUNE 27, 2016
TAXING AUTHORITY THE CITY OF ATLANTIC BEACH, FLORIDA
MITCHELL E. REEVES
As MAYOR
800 SEMINOLE RD.
ATLANTIC BEACH, FL 32233
NELSON VANLIERE
As CITY MANAGER
800 SEMINOLE RD.
ATLANTIC BEACH, FL 32233
DONNA L. BARTLE, CMC
As CITY CLERK
800 SEMINOLE RD.
ATLANTIC BEACH, FL 32233
DATE: ______________________ ___
DATE: ------------------------
DATE: ______________________ ___
APPROVED AS TO LEGAL FORM
For the City of Atlantic Beach:
Signature: ---:----------------------
City Attorney
7
AGENDA ITEM:
STAFF REPORT
City of Atlantic Beach
Commission Meetin g
ORDINANCE NO. 20-16-138
A GENDA ITEM 7 A
JUNE 27, 2016
AN ORDINANCE AMENDING THE OPERATING
BUDGET FOR THE CITY OF ATLANTIC BEACH,
FLORIDA FOR FISCAL YEAR BEGINNING
OCTOBER 1, 201 5 AND ENDING SEPTEMBER 3 0,
2016, AND PROVIDING AN EFFECTIVE DATE.
DATE: May27, 2016
SUBMITTED BY: Russel1 Caffey, Finance Director
BACKGROUND: The City of Atlantic Beach 's Legal Budget for fiscal year 2017 (FY17) is
$96,000. Following the Gate Hearing, the City has incurred $86,835 in
legal expenditures for the year. Legal fees not associated with Gate
Petroleum are currently averaging $8 ,260 a month. City Staff is
requesting an increase to the legal budget of $75 ,000 to cover estimated
lega1 costs for the remainder ofFYl7.
BUDGET: Mid-year budget modification to transfer$ 75 ,000 from the Fund Balance
to the Legal Services Division.
RECOMMENDATION: To adopt Ordinance NO. 20-16-138 amending the2015-16 Annual
Budget.
ATTACHMENT: 1. Ordinance No. 20-16-138
REVIEWED BY CITY MANAGER: ~~ 1/'-rz /u,.~
AGENDA ITEM 7 A
JUNE 27, 2016
ORDINANCE NO. 20-16-138
AN ORDINANCE AMENDING THE OPERATING BUDGET
FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR
FISCAL YEAR BEGINNING OCTOBER 1, 2015 AND
ENDING SEPTEMBER 30, 2016, AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Chmier of the City of Atlantic Beach requires that the City
Commission approve all budgetary increases and transfers at the fund level, and
WHEREAS, the nature of budgetary systems and those day-to-day decisions affecting
such budgetary systems require adjustments from time-to-time, and
WHEREAS, the City is amending the operating budget to add net funds totaling $75,000
to cover an estimated increase to legal fees for the balance of the fiscal year.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON
BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that;
1. The Fiscal Year 2015/2016 Budget to be amended as follows:
GENERAL FUND
Expenditures:
City Administration -Legal Services
Fund Balance:
Professional Services -City Attorney
Total Expenses:
2. This ordinance shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this 13th day of June 2016.
$ 75 000
$ 75.000
<$ 75.000>
Passed by the City Commission on second and final reading this __ day of 2016.
Mitchell E. Reeves
Mayor I Presiding Officer
Approved as to form and correctness:
Brenna M. Durden
City Attorney
ATTEST:
Donna L. Bartle, CMC
City Clerk
STAFF REPORT
City of Atlantic Beach
Commission Meeting
AMENDED ITEM SA
JUNE 27, 2016
AGENDA ITEM: Safe Routes to Schools Route Selection
DATE: June 8, 2016
SUBMITTED BY: Donald D. Jacobovitz, P.E., Public Works Director
BACKGROUND: In late 2012, the City Commission asked Staff to investigate whether the
FOOT Safe Routes to Schools (SRTS) Grant Program would be a viable means to get
funding for improving bicycle access to Atlantic Beach Elementary School (ABE) by
connecting and upgrading the current Multi-Purpose (bicycle & pedestrian) Path I
sidewalk network on Seminole Road and Sherry Drive.
Staff applied for the SRTS grant, which was approved in late 2013. Under this grant,
FOOT was responsible for engineering design and construction of the Multi-Purpose
Path (MPP), with no requirement for matching funds from the City.
The proposed project, which will construct an eight foot multi-purpose path on Sherry
Drive from Ahern Street to Plaza Drive, and on Seminole Road from Plaza Drive to 1 yth
Street, was presented at public meetings in March 2013 and May 2016 and received
enthusiastic support from attendees, including the Friends of Atlantic Beach Elementary
(FABE), ABE SAC and PTA.
Two options for the path are under consideration and are to be presented to the
Commission at a Workshop before the June 23rd Commission meeting. The first option
is the original proposed route constructing the entire path along the eastern side of
Sherry Drive and Seminole Road. The second option is to use the existing MPP on the
west side of Seminole Road from Plaza Drive to Selva Marina Drive ( -1300 LF) and
continue on the west side to the existing crosswalk near 151h St I Country Club Lane.
Staff has evaluated the options and lists some Pros & Cons of each alternative in
Attachment 1. A third option is for the Commission to decide the project is not in the
best interests of the City and to terminate design and surrender the grant. Under Federal
Law, the city will be obligated for the funds already expended to bring design to the
current point ($50,000 as of April 8, 2016).
The Commission proposed alternative for routing a portion of the path through Howell
park was not considered based on community comments at the May yth Town Hall
meeting regarding safety concerns and also because the longer route through the park
would further reduce the length of path to the north.
Preliminary design for the project began in 2014. After changes in project funding source
and engineering consultant, final design was begun by Element Engineering in October
2015. Design is being held at the Conceptual (30%) stage pending City selection of the
route to follow for the SRTS path. Construction is anticipated to begin after July 1, 2017.
AMENDED ITEM SA
JUNE 27, 2016
The Jacksonville Transportation Authority (JTA) has agreed to serve as the Local
Agency Project (LAP) Administrator for the FOOT on this project.
BUDG ET: The negotiated public involvement support fee ($6, 136.57) is being paid from the
Public Works Professional Services account (001-5002-541-3100) with no additional
funding required .
The City will be obligated for design fees (-$50,000) if the project is canceled, funding
source to be determined , if needed.
FOOT has budgeted $687,000 for design , construction and construction support efforts .
RECOMMENDATIONS: Staff recommends the Commission approve the original route keeping
the entire multi-purpose path on the eastern side of Sherry Drive and Seminole Road.
ATTACHMENTS: 1. SRTS Path Alternatives -Pros & Cons
2 . Powerpoint presentation
REVIEWED BY CITY MANAGER: --P1._ t/~ ~
Safe Routes to Schools Route Options
1) Original Route-East Side Sherry and Seminole-Ahern to 17th St.
• Pros:
AGENDA ITEM SA
JUNE 27, 2016
o Minimizes main route crossings of high traffic volume streets (crosses Plaza
Drive at a five way Stop controlled intersection).
o Route already field verified as having no significant obstacles and requiring
minimal tree removal.
o Design already at 30% level, no additional survey required.
• Cons:
o Funding limitations dictate construction stops at 1 yth St. (instead of tying into
existing MPP at Garden Lane as requested in initial grant application).
o Constructs new concrete walkway where there is no existing path (east side of
Seminole, Plaza to 151h St), while there is an existing MPP and sidewalk on the
west side of Seminole.
2) Alternate Route -West Side Seminole -Plaza to 15th St.
• Pros:
o Uses existing MPP from Plaza to Selva Marina Dr. and replaces existing
sidewalk from Selva Marina Dr. to 15th St.
o Use of existing path may allow extending path north to 18th St.
o Reduces number of driveway crossings because one block is along south edge
of Johansen Park.
• Cons:
o Requires two additional main route crossings of high traffic volume streets
(Seminole at 15th and at Plaza Dr.). 15th St crossing is not Stop controlled.
Because of heavy traffic volume, Seminole at Plaza may require a Crossing
Guard.
o Crossing at 15th St is on a curve in Seminole Road.
o Additional survey required, est. cost $5,250 from Plaza to 15 1h St. (also additional
survey if path is extended to 18th St., -$8,000). Probably at City expense.
Safe Routes To Schools
• FHWA I FOOT Sponsored Program
-To improve the bicycle and pedestrian safety of
Kindergarten through eighth grade school children,
-To enable and encourage children, including those with
disabilities, to walk and bicycle to school,
-To make bicycling and walking to school a safer and more
appealing transportation alternative, thereby encouraging
a healthy and active lifestyle from an early age, and
-To facilitate the planning, development, and
implementation of projects and activities that will improve
safety and reduce traffic, fuel consumption, and air
pollution in the vicinity of schools. l> .... s: em zZ
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Desired outcomes of the Safe
Routes to School Program include:
• Increased bicycle,
pedestrian, and traffic
safety
• Encouragement of healthy
and active lifestyles
• Improved air quality
• More children walking • Improved community
and bicycling to and from safety
schools
• Decreased traffic
congestion
• Improved childhood
health
• Reduced childhood
obesity
• Reduced fuel
consumption
• Increased community
security
• Enhanced community
accessibility
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Desired outcomes of the Safe
Routes to School Program include:
{Continued)
• Increased community involvement
• Improvements to the physical environment
that increase the ability to walk and bicycle to
and from schools
• Increased interest in bicycle and pedestrian
accommodations throughout a community
• Improved partnerships among schools, local
municipalities, parents, and other community
groups, including non-profit organizations
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The Five E's of Safe Routes to School:
The Federal Highway Administration (FHWA) recommends that SRTS efforts incorporate
-directly or indirectly-five components, often referred to as the "5 E's". They are:
• Engineering-Creating operational and physical improvements to the infrastructure
surrounding schools that reduce speeds and potential conflicts with motor vehicle
traffic, and establish safer and fully accessible crossings, walkways, trails and bikeways.
• Education-Teaching children about the broad range of transportation choices,
instructing them in important lifelong bicycling and walking safety skills, and launching
driver safety campaigns in the vicinity of schools.
• Encouragement-Using events and activities to promote walking and bicycling.
• Enforcement-Partnering with local law enforcement to ensure traffic laws are
obeyed in the vicinity of schools (this includes enforcement of speeds, yielding to
pedestrians in crossings, and proper walking and bicycling behaviors), and initiating
community enforcement such as crossing guard programs.
• Evaluation-Monitoring and documenting outcomes and trends through the
collection of data, including the collection of data before and after the intervention (s).
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Timeline
• Grant Application approved-2013
-Funds 100% of Design and Construction Costs
• Survey & Engineering Design-In Progress
• Town Hall meeting held May 7th, 2016
• City Approved MOA with JTA to move forward
with the project on May 23rd, 2016
• Workshop held June 27th, 2016 to discuss the
selection of a path for the SRTS
• Construction -FY 2017 -2018 )> .... s:
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AGENDA ITEM:
SUBMITTED BY:
DATE:
STRATEGIC PLAN LINK:
BACKGROUND:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AMENDED ITEM 9A
JUNE 27, 2016
90-Day Calendar for the Mayor and Commission
Yvonne Calverley, Executive Assistant to the City Manager~ C....
June 21, 2016
None
The 90-day calendar is included on the agenda for the purpose of setting
meeting dates, determining the location, time and whether or not to
videotape special meetings and workshops if the Commission desires.
The rolling 90-day calendar will be revised after receiving input from City
staff and the Commission and will be included in each agenda for
consideration.
Special notes:
• The next quarterly Town Hall Meeting is scheduled for Saturday,
July 16th at 10 am in the Commission Chamber.
• Budget Workshops are tentatively scheduled for Wednesday, August
lOth and Wednesday, August 17th from 5 to 9 pm.
BUDGET: None
RECOMMENDATION: Approve the 90-Day Calendar for July through September 2016
ATTACHMENT: 1) Mayor and Commission 90-Day Calendar (July through September
2016)
CITY MANAGER: ~ ~ c;I_CLA...e!
SL 'i'-D .\Y .\J( )~[).\ y
3 4 5
Son g writers ' Concert 4th of July
6-8 pm City Offices Adele Grage
Closed
10 11 12
Commission Mtg
6:30pm
(Invoc-Hill)
Videotaped
17 18 19
24 25 26
Acoustic Nights Commission Mtg
6-8 pm 6:30pm
Bull Park (lnvoc-Harding)
Videotaped
31
MAYOR AND COMMISSION
July 2016
'Jl'I ·:SD .\Y \\'1-:D~I ·:SD .\ Y TIIL 'RSD .\Y
1
6 7 8
13 14 15
20 21 22
27 28 29
1·1\JI).\ y
Newsletter Due
(Mayor)
Due Date for
7/25
Agenda Items
Due Date for
8/8
Agenda Items
S \Tl'RD .\Y
2
9
16
T own Hall Me et ing
lOam
Chamber
23
30
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SUNDAY MONDAY
1
7 8
Songwriters'
Concert Commission Mtg
6-8 pm 6:30pm
Adele Grage (Invoc -Waters)
14 15
21 22
Commission Mtg
6:30pm
(lnvoc -Reeves)
28 29
Acoustic Nights
6-8 pm
Bull Park
MAYOR AND COMMISSION
August 2016
TUESDAY WEDNESDAY THURSDAY
2 3 4
9 10 11
Budget Workshop
Newsletter Due 5-9 pm
(Stinson) Chamber
(Tentative)
16 17 18
Budget Workshop
5-9 pm
Chamber
(Tentative)
23 24 25
30 31
FRIDAY
5
Due Date for
8/22
Agenda Items
12
19
26
Due Date for
9/12
Agenda Items
6
13
20
27
SATURDAY
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MAYOR AND COMMISSION
September 2016
SL ':-\D .\Y :W1:-\D .\Y H 'I ·:SD .\ Y \\'!-:[)~ I ·:SD .\ Y TIIU I{SD .\ Y
1
Labor Day
City Offices
Closed
4 5 6 7 8
Newsletter Due
(Waters)
11 12 13 14 15
Commission Mtg
6 :30pm
(lnvoc-Stinson)
Videotaped
18 19 20 21 22
25 26 27 28 29
Commission Mtg
6 :30pm
(Invoc-Hill)
Videotaped
I · RID .\ Y
2
9
Due Date for
9/26
Agenda Items
16
23
Due Date for
10/10
Agenda Items
30
S.\'ll 'IW .\Y
3
10
17
24
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