Annual Financial Report - 2015-2016 - v
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS’ REPORT
CITY OF ATLANTIC BEACH, FLORIDA
SEPTEMBER 30, 2016
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS’ REPORT
CITY OF ATLANTIC BEACH, FLORIDA
SEPTEMBER 30, 2016
TABLE OF CONTENTS
Independent Auditors’ Report ..................................................................................................................... i-iii
Management’s Discussion and Analysis.................................................................................................... iv-xi
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position .......................................................................................................................... 1
Statement of Activities .............................................................................................................................. 2
Fund Financial Statements
Balance Sheet -Governmental Funds ....................................................................................................... 3
Reconciliation of Balance Sheet of Governmental Funds to the
Statement of Revenues, Expenditures, and Changes in Fund
Statement of Net Position....................................................................................................................... 4
Balances -Governmental Funds ............................................................................................................ 5
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ........................................................................................................................... 6
Statement of Net 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 ........................................................................................................ 16-45
Required Supplementary Information
General Employees’ Pension Plan:
Schedule of Changes in Net Pension Liability and Related Ratios ........................................................ 46
Schedule of Contributions ....................................................................................................................... 47
Schedule of Investment Returns .............................................................................................................. 48
Police Officers’ Pension Plan:
Schedule of Changes in Net Pension Liability and Related Ratios ........................................................ 49
Schedule of Contributions ....................................................................................................................... 50
Schedule of Investment Returns .............................................................................................................. 51
Other Postemployment Benefits Plan -Schedule of Funding Progress ...................................................... 52
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Note to Schedule of Revenues, Expenditures, and Changes in Fund
Budget and Actual -General Fund .....................................................................................................53-54
Balances -Budget and Actual -General Fund........................................................................................ 55
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS’ REPORT
CITY OF ATLANTIC BEACH, FLORIDA
SEPTEMBER 30, 2016
TABLE OF CONTENTS
(Concluded)
Supplementary Information
Combining Balance Sheet -Nonmajor Governmental Funds ................................................................56-57
Combining Statement of Revenues, Expenditures, and Changes
Schedules of Net Revenues in Accordance with Bond
in Fund Balances -Nonmajor Governmental Funds .........................................................................58-59
Combining Statement of Fiduciary Net Position ......................................................................................... 60
Combining Statement of Changes in Fiduciary Net Position ...................................................................... 61
Historical Revenues and Expenses ............................................................................................................... 62
Resolutions -Enterprise Funds (Water and Sewer) ................................................................................ 63
Other Bond Covenant Disclosures ............................................................................................................... 64
Other Statistical Information
Major Utility Customers ............................................................................................................................... 65
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
Schedule of Source and Expenditure of the City Grant Funds ............................................................... 66
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
Independent Accountants’ Report on Compliance with
with Government Auditing Standards .......................................................................................... 67-68
Section 218.415, Florida Statutes ....................................................................................................... 69
Management Letter ............................................................................................................................ 70-72
Management Response Letter ........................................................................................................... 73-74
INDEPENDENT AUDITORS’ REPORT
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
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, 2016, 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 auditor considers internal control relevant to the City’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting 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.
i
Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
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 information of the City, as of September 30, 2016, 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.
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 46–55 be presented to
supplement the basic financial statements. Such information, 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 information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The supplementary information on pages 56–64, the other
statistical information section on page 65, and the schedule of expenditures of grant funds per the City of
Jacksonville’s Ordinance Code Chapter 118.202(e) on page 66 are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
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 certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. 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.
ii
Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
Atlantic Beach, Florida
INDEPENDENT AUDITORS’ REPORT
(Concluded)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have issued our report dated August 8, 2017, on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Report on Summarized Comparative Information
We have previously audited the City’s 2015 financial statements, and our report dated June 23, 2016,
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, 2015, is consistent,
in all material respects, with the audited financial statements from which it was derived.
August 8, 2017
Gainesville, Florida
iii
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2016
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, 2016.
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 report 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 of Net 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 of the 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 of their costs through user fees and charges,
referred to as “business-type activities.” The governmental activities of the City include public safety, road
maintenance and construction, parks and recreation, conservation and resource management, debt, and
general government, 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
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of available
iv
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2016
(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 of Revenues, Expenditures, and Changes in Fund Balances and Statement
of Activities to facilitate this comparison between governmental funds and governmental activities.
The City maintains eleven 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 ten 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 56 -61 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 of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual -General Fund budgetary comparison schedule and notes on pages 53 - 54 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 information of the utility, stormwater, sanitation and
building code enforcement activities can be found in the basic proprietary fund financial statements on
pages 7 - 13 of this report.
■ 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 information 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 concerning 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 46 of this report.
v
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2016
(Continued)
Government-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 $78,050,000 at the close of the fiscal year
ended September 30, 2016.
By far the largest portion of the City’s net position, $64,277,000 (82%), reflects its investment in capital assets
(i.e., land, buildings, equipment, and infrastructure), 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, $5,528,000 (7%), represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $8,245,000
(11%), is used to meet the government’s ongoing obligations to citizens and creditors.
City of Atlantic Beach’s Net Position
September 30, 2016 and 2015
(In Thousands)
Governmental Business-type
Activities Activities Totals
2016 2015 2016 2015 2016 2015
Current and other assets $12,272 $11,965 $11,365 $9,466 $23,637 $21,431
Capital assets 42,460 39,542 41,084 39,607 83,544 79,149
Total Assets 54,732 51,507 52,449 49,073 107,181 100,580
Deferred Outflow 3,578 2,993 2,136 2,083 5,714 5,076
Long-term liabilities
outstanding 8,860 8,374 20,955 22,235 29,815 30,609
Other liabilities 1,548 707 3,208 2,924 4,756 3,631
Total Liabilities 10,408 9,081 24,163 25,159 34,571 34,240
Deferred Inflow 225 40 49 0 274 40
Net Position:
Invested in capital assets,
net of related debt 42,087 39,542 22,190 19,394 64,277 58,936
Restricted 3,823 3,883 1,705 883 5,528 4,766
Unrestricted 1,767 1,954 6,478 5,720 8,245 7,674
Total Net Position $47,677 $45,379 $30,373 $25,997 $78,050 $71,376
vi
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2016
(Continued)
As illustrated in the schedule on page vi, the City was able to report positive balances in all categories of
net position, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
City of Atlantic Beach’s Change in Net Position
For the Years Ended September 30, 2016 and 2015
(In Thousands)
Governmental Business-type
Activities Activities Totals
2016 2015 2016 2015 2016 2015
Revenues:
Program Revenues:
Charges for Services $1,732 $1,739 $11,538 $11,114 $13,270 $12,853
Operating Grants and
Contributions 667 642 0 0 667 642
Capital Grants and
Contributions 1,913 217 3,828 342 5,741 559
General Revenues:
Property Taxes 4,483 4,113 0 0 4,483 4,113
Sales Taxes 1,331 1,296 0 0 1,331 1,296
Business and Utility Taxes 1,123 1,109 0 0 1,123 1,109
State Revenue Sharing 332 322 0 0 332 322
Discretionary Sales Surtax 806 772 0 0 806 772
Investment Earnings (Loss) 168 3 138 (5) 306 (2)
Miscellaneous 70 53 0 0 70 53
Total Revenues 12,625 10,266 15,504 11,451 28,129 21,717
Expenses:
General Government 2,330 1,935 0 0 2,330 1,935
Public Safety 5,562 5,350 0 0 5,562 5,350
Road Maintenance and
Construction 1,901 1,771 0 0 1,901 1,771
Parks and Recreation 1,385 1,299 0 0 1,385 1,299
Interest/Fiscal Charges on
Long-term Debt 0 0 0 0 0 0
Utility 0 0 7,130 7,278 7,130 7,278
Stormwater 0 0 1,163 1,092 1,163 1,092
Sanitation 0 0 1,546 1,560 1,546 1,560
Building Code Enforcement 0 0 438 350 438 350
Total Expenses 11,178 10,355 10,277 10,280 21,455 20,635
Transfers 851 578 (851) (578) 0 0
Change in Net Position 2,298 489 4,376 593 6,674 1,082
Net Position-Beginning 45,379 44,890 25,997 25,404 71,376 70,294
Net Position-Ending $47,677 $45,379 $30,373 $25,997 $78,050 $71,376
vii
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2016
(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 $10,931,000, a decrease of $517,000 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 $4,217,000, which equated to 36% of total General Fund expenditures
without transfers. The net result of various revenue and expense items resulted in a decrease to the City’s
General Fund of $381,000 or 5% during the current fiscal. The decrease was a result of a transfers of
$200,000 to purchase land for park expansion and $575,000 for the public safety building project. These
transfers were offset by surplus of budget over expenditures, mostly 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 $3,754,000. Of this fund balance, $3,823,334 is
restricted for capital projects and other uses. The net decrease in fund balance after transfers in
nonmajor governmental funds was $136,000.
■ 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
$11,433,000, expenses of $9,648,000, net non-operating costs of $(386,000) and net capital contributions,
grants and transfers of $2,978,000. The net position in the proprietary funds increased $4,376,000 as a
result of the fiscal year’s activities. The unrestricted net position of the enterprise funds amounted to
$6,477,905 at the end of fiscal year 2016.
Stormwater rates stayed constant in fiscal year 2016 as there were no rate changes. The $8.39 per ERU
is approximately 79%, compared to 84% for the prior year, of the total operating expenses of
$1,110,000 needed to fully fund the operation with charges for service.
During fiscal year 2016, the Sanitation Fund netted an increase in net position of $86,000.
General Fund Budgetary Highlights
Net Budget
The overall net difference from the final budgeted revenues and adjusted final budgeted expenses was a
deficit of $1,267,000. The actual decrease in fund balance was $381,000. This resulted in an $885,000
excess variance above what was budgeted.
viii
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2016
(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, 2016, amounted to $83,544,000. 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 $2,918,000 or 7.38% for governmental activities and a increase of $1,477,000 or 3.01% for
business-type activities.
Capital asset events during the current fiscal year included the following:
Governmental Activities
Buildings, net of accumulated depreciation, decreased by $120,000 through annual depreciation of
the capital assets.
Intangible Assets reflected a net increase of $18,000 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 $585,000. This represents capital
asset increase of $1,263,000, offset by depreciation of $678,000.
Equipment reflected a net increase of $74,000. This represents capital asset increase of $292,000,
offset by depreciation of $218,000.
Construction in progress increased $2,160,000.
Land reflected an increase of $201,000.
■ Business-type Activities
Buildings reflected a net decrease in asset value of $9,000 from depreciation.
Improvements Other Than Buildings reflected a net increase of $1,318,000. This represents capital
asset increases of $3,563,000, offset by depreciation of $2,245,000.
Equipment reflected a net decrease of $12,000. This represents capital asset increase of $73,000,
offset by depreciation of $84,000.
Construction in Progress had a net increase of $180,000.
ix
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2016
(Continued)
City of Atlantic Beach’s Capital Assets
(Net of Depreciation)
(In Thousands)
Governmental Business-type
Activities Activities Totals
2016 2015 2016 2015 2016 2015
Land $10,564 $10,363 $1,656 $1,656 $12,220 $12,019
Intangibles 56 38 214 214 270 252
Buildings 2,479 2,599 62 70 2,541 2,669
Improvements-Other 25,736 25,151 37,895 36,577 63,631 61,728
Equipment 1,068 994 517 529 1,585 1,523
Construction in Progress 2,557 397 740 560 3,297 957
Total $42,460 $39,542 $41,084 $39,606 $83,544 $79,148
Additional information on the City’s capital assets can be found in Note 5 on pages 28 - 29 of this report.
Long-term Debt
At the end of the 2016 fiscal year, the City had total bonded debt outstanding of $19,865,000. 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, 2016
(In Thousands)
Business-type
Activities
Utilities System Revenue Bond, Series 2014 $12,870
F.D.E.P. State Revolving Funds Loan, 2010 595
F.D.E.P. State Revolving Funds Loan, 2009 6,400
Total $19,865
Debt service coverage calculations can be found on page 63. Additional information on the City’s long-
term debt can be found in Note 6 on pages 29 – 31 of this report.
x
Revenue Highlights:
CITY OF ATLANTIC BEACH, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2016
(Concluded)
• Total General Revenues for 2016 were $788,000 higher than 2015 revenue (page 2). Lncreases in
property taxes of$369,000 and investment earnings of$308,000 made up majority ofthis increase.
• The 2016 taxable property values were about 12.03% higher t han the 2015 values. The City
Commission voted to reduce the millage rate to 3.2285 mills, instead of the keeping the prior year rate
of 3 .3285. The purpose for adopting the millage rate of 3.2285 was to offer tax re li ef to the citizens
and benefit from the annexation of the Atlantic Beach Country Club fro m Jacksonvi ll e. The final gross
taxable property va lue wa s $1,432,701,000 . Ad valorem taxes of $4,482,739 represent 41 % o f the
General Fund revenues for 2016.
• The 2016 Intergovernmental revenues of $1 ,8 20,000 make up 16.81 % of genera l fund revenues. This
is an increase of$71,000 over 2015 .
• The C ity 's investment portfolio is valued at approximately $16, I 09,000 as of September 30, 2016. The
investments showed a gain of $306,000 for the year, compared to a loss of $2,000 in the prior year.
Expenditure Highlights:
• Total Governmental Fund Expenditures increased in current yea r by $2,384,000 when compared to prior
year. This increase wa s a result of the Public Safety Building Project as well as other Capital Projects.
• ln 2016 , a larger investment in the City's infrastructure resulted in capital expenditures increasing f rom
$1,436,000 in 2015 to $2,765,000 in 2016. Some of the projects include the Phosphorous Treatment
Facility, Effluent Outfall Project, and the Publi c Safety Building Project.
Requests for Information
The fmancial 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.
Director of Finance
XI
BASIC FINANCIAL STATEMENTS
These basic financial statements contain Government-wide Financial Statements, Fund Financial
Statements, and Notes to Financial Statements.
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2015
2016
Governmental Business-type 2015
Activities Activities Totals Totals
Assets Equity in Pooled Cash and Investments 11,206,230 $ 8,581,809 $ 19,788,039 $ 18,440,875 $
Receivables - Net 50 611,071 611,121 548,836
Due from Other Governments 1,047,929 35,244 1,083,173 972,176
Inventories 8,986 12,827 21,813 33,654
Notes Receivable - Current 760 15,759 16,519 16,519
Restricted Assets:
Equity in Pooled Cash and Cash Equivalents 0 1,984,814 1,984,814 1,218,056
Capital Assets:
Land 10,563,572 1,656,018 12,219,590 12,019,020 Buildings 4,574,646 4,356,384 8,931,030 8,931,030 Improvements Other Than Buildings 41,339,136 83,075,473 124,414,609 119,588,533 Equipment 4,343,033 2,401,082 6,744,115 6,379,327 Intangibles - Easements and Computer Software 409,797 244,709 654,506 626,648 (Accumulated Depreciation and Amortization) (21,327,563) (51,390,230) (72,717,793) (69,352,779) Construction in Progress 2,557,045 740,411 3,297,456 957,269 Prepaid Items 6,686 0 6,686 74,891 Notes Receivable - Noncurrent 1,520 123,346 124,866 125,946
Total Assets 54,731,827 52,448,717 107,180,544 100,580,001
Deferred Outflows of Resources
Unamortized Refunding Loss 0 971,489 971,489 1,079,432 Pension Related 3,578,578 1,164,708 4,743,286 3,995,826
Total Deferred Outflows of Resources 3,578,578 2,136,197 5,714,775 5,075,258
Liabilities Accounts Payable and Other Current Liabilities 1,091,004 549,903 1,640,907 867,372
Construction Retainages Payable 141,942 6,255 148,197 24,819
Due to Other Governments 0 10,934 10,934 11,066
Unearned Revenue 1,689 181,993 183,682 200,306 Deposits 4,172 0 4,172 2,736 Compensated Absences - Current 308,643 106,084 414,727 259,192 Payable from Restricted Assets:
Current Portion of Bonds Payable 0 1,160,000 1,160,000 1,090,000 Current Portion of Loan Payable 0 347,412 347,412 336,895 Accrued Interest Payable 0 235,654 235,654 252,483 Customer Deposits 0 609,753 609,753 586,894 Noncurrent Liabilities:
Due in More Than One Year 0 18,357,709 18,357,709 19,865,122 Compensated Absences - Noncurrent 368,822 128,226 497,048 521,861 Other Postemployment Benefits Obligation 203,704 67,974 271,678 238,299 Net Pension Liability 8,288,194 2,401,103 10,689,297 9,983,520
Total Liabilities 10,408,170 24,163,000 34,571,170 34,240,565
Deferred Inflow of Resources Pension Related 224,998 49,180 274,178 39,827
Net Position Net Investment in Capital Assets 42,087,081 22,190,215 64,277,296 58,936,463 Restricted for:
Renewal and Replacement 0 250,000 250,000 250,000 Debt Service 0 390,038 390,038 381,162 Public Safety 161,166 0 161,166 180,762 Road Maintenance and Construction 1,067,154 0 1,067,154 248,141 System Development Fees 0 735,023 735,023 290,885 Other Capital Projects 2,433,056 0 2,433,056 3,325,789 Other Purposes 161,958 0 161,958 128,595 Building Code Enforcement 0 329,553 329,553 251,255 Unrestricted 1,766,822 6,477,905 8,244,727 7,381,815
Total Net Position $ 47,677,237 $ 30,372,734 $ 78,049,971 $ 71,374,867
See accompanying notes.
1
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
2016
Program Revenues Net (Expense) Revenue and Changes in Net Position
Operating Capital Primary Government
Charges for Grants and Grants and Governmental Business-type 2015
Functions/Programs Expenses Services Contributions Contributions Activities Activities Totals Totals
Primary Government
Governmental Activities:
General Government $ 2,329,703 857,798 $ 25,000 $ 167,000 $ (1,279,905) $ 0$ (1,279,905) $ $ (1,052,731)
Public Safety 5,561,978 659,933 67,946 0 (4,834,099) 0 (4,834,099) (4,611,360)
Road Maintenance and
Construction 1,901,075 140,898 573,739 1,619,675 433,237 0 433,237 (1,002,963)
Parks and Recreation 1,384,448 73,533 0 126,652 (1,184,263) 0 (1,184,263) (1,095,355)
Conservation and Resource
Management 0 0 0 0 0 0 0 4,283
Total Governmental Activities 11,177,204 1,732,162 666,685 1,913,327 (6,865,030) 0 (6,865,030) (7,758,126)
Business-type Activities:
Utility 7,129,895 8,285,467 0 1,996,750 0 3,152,322 3,152,322 1,052,183
Stormwater 1,163,005 872,880 0 1,831,683 0 1,541,558 1,541,558 (232,437)
Sanitation 1,545,461 1,853,511 0 0 0 308,050 308,050 265,540
Building Code Enforcement 438,389 525,820 0 0 0 87,431 87,431 90,917
Total Business-type Activities 10,276,750 11,537,678 0 3,828,433 0 5,089,361 5,089,361 1,176,203
Total Primary Government $ 21,453,954 13,269,840 $ 666,685 $ 5,741,760 $ (6,865,030) 5,089,361 (1,775,669) (6,581,923)
General Revenues
Property Taxes 4,482,739 0 4,482,739 4,113,476
Sales Taxes 1,330,946 0 1,330,946 1,296,201
Business and Utility Taxes 1,123,011 0 1,123,011 1,109,471
State Revenue Sharing 331,606 0 331,606 321,521
Discretionary Sales Surtax 806,405 0 806,405 772,098
Investment Earnings (Loss) 167,993 137,638 305,631 (2,348)
Miscellaneous 70,435 0 70,435 52,293
Transfers 850,824 (850,824) 0 0
Total General Revenues and Transfers 9,163,959 (713,186) 8,450,773 7,662,712
Change in Net Position 2,298,929 4,376,175 6,675,104 1,080,789
Net Position, Beginning of Year 45,378,308 25,996,559 71,374,867 75,880,648
Prior Period Adjustment 0 0 0 (5,586,570)
Net Position, Beginning of Year (as Restated) 45,378,308 25,996,559 71,374,867 70,294,078
Net Position, End of Year 47,677,237 $ 30,372,734 $ 78,049,971 $ $ 71,374,867
See accompanying notes.
2
CITY OF ATLANTIC BEACH, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2015
2016
Nonmajor Totals
Governmental Governmental 2015
General Funds Funds Totals
Assets
Equity in Pooled Cash and Investments $ 7,105,473 4,100,757 $ 11,206,230 $ 10,945,323 $
Receivables - Net 50 0 50 450
Due from Other Funds 75,035 0 75,035 10,781
Due from Other Governments 636,272 411,657 1,047,929 936,932
Inventories 8,986 0 8,986 20,827
Notes Receivable - Current 760 0 760 760
Prepaid Items 6,686 0 6,686 58,786
Notes Receivable - Noncurrent 1,520 0 1,520 1,520
Total Assets 7,834,782 4,512,414 12,347,196 11,975,379
Liabilities and Fund Balances
Liabilities
Accounts Payable and Accrued Liabilities 653,290 437,714 1,091,004 491,380
Construction Retainages Payable 0 141,942 141,942 0
Due to Other Funds 0 75,035 75,035 10,781
Deposits 2,746 1,426 4,172 2,736
Unearned Revenue 1,689 0 1,689 22,017
Total Liabilities 657,725 656,117 1,313,842 526,914
Deferred Inflows of Resources 0 102,723 102,723 0
Fund Balances
Nonspendable:
Inventories 8,986 0 8,986 20,827
Prepaids 6,686 0 6,686 58,786
Restricted for:
Public Safety 0 161,166 161,166 180,762
Road Maintenance and Construction 0 1,067,154 1,067,154 248,141
Other Capital Projects 0 2,433,056 2,433,056 3,325,789
Other Purposes 0 161,958 161,958 128,595
Committed to:
Conservation and Resource Management 0 34,911 34,911 18,956
Assigned to:
Operating Reserves 2,944,071 0 2,944,071 2,836,042
Unassigned 4,217,314 (104,671) 4,112,643 4,630,567
Total Fund Balances 7,177,057 3,753,574 10,930,631 11,448,465
Total Liabilities and Fund Balances $ 7,834,782 4,512,414 $ 12,347,196 $ $ 11,975,379
See accompanying notes.
3
CITY OF ATLANTIC BEACH, FLORIDA
RECONCILIATION OF BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2015
Total Fund Balances of Governmental Funds
Amounts Reported for Governmental
Activities in the Statement of Net Position
are Different Because:
Capital assets used in governmental
activities are not financial resources
and, therefore, are not reported in
the funds:
Total Capital Assets
(Accumulated Depreciation)
Nonexchange receivables that do not
provide current financial resoures and,
therefore, are not reported revenues
in the funds.
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
Deferred Inflows Related to Pensions
Long-term liabilities are not due and payable
in the current period and, therefore, are
not reported in the governmental funds:
Compensated Absences
Other Postemployment Benefits Obligation
Net Pension Liability
$ 10,930,631
63,787,229 $
(21,327,563)
42,459,666
102,723
3,578,578
(224,998)
3,353,580
(677,465)
(203,704)
(8,288,194)
(9,169,363)
2016
$
$ 59,843,271
(20,301,137)
2,992,625
(39,827)
(573,231)
(178,501)
(7,813,357)
2015
11,448,465
39,542,134
0
2,952,798
(8,565,089)
Total Net Position of Governmental Activities $ 47,677,237 $ 45,378,308
See accompanying notes.
4
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
2016
Nonmajor Totals
Governmental Governmental 2015
General Funds Funds Totals
Revenues
Property Taxes 4,482,739 $ 0$ 4,482,739 $ 4,113,476 $
Nonproperty Taxes 1,123,010 1,398,230 2,521,240 2,471,639
Permits, Fees, and Special Assessments 848,308 0 848,308 858,232
Intergovernmental Revenues 1,819,735 567,734 2,387,469 1,913,613
Fines and Forfeitures 54,333 21,589 75,922 89,782
Charges for Services 786,053 0 786,053 742,416
Investment Earnings (Loss) 107,460 60,534 167,994 2,410
Miscellaneous Revenues 53,674 15,955 69,629 57,090
Interfund Charges 1,550,320 0 1,550,320 1,545,981
Total Revenues 10,825,632 2,064,042 12,889,674 11,794,639
Expenditures
Current:
General Government 3,221,836 0 3,221,836 2,845,102
Public Safety 5,349,975 84,547 5,434,522 4,971,742
Road Maintenance and Construction 1,419,317 308,532 1,727,849 1,591,334
Parks and Recreation 1,109,060 0 1,109,060 1,028,105
Conservation and Resource
Management 0 0 0 1,800
Capital Outlay 577,418 2,187,647 2,765,065 1,436,086
(Total Expenditures) (11,677,606) (2,580,726) (14,258,332) (11,874,169)
(Deficiency) of Revenues (Under)
Expenditures (851,974) (516,684) (1,368,658) (79,530)
Other Financing Sources (Uses)
Transfers in 1,045,874 1,140,300 2,186,174 1,088,210
Transfers (out) (575,300) (760,050) (1,335,350) (510,000)
Sale of General Fixed Assets 0 0 0 17,611
Total Other Financing Sources (Uses) 470,574 380,250 850,824 595,821
Net Change in Fund Balances (381,400) (136,434) (517,834) 516,291
Fund Balances, Beginning of Year 7,558,457 3,890,008 11,448,465 10,932,174
Fund Balances, End of Year 7,177,057 $ 3,753,574 $ 10,930,631 $ 11,448,465 $
See accompanying notes.
5
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, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
2016 2015
Net Change in Fund Balances - Total Governmental Funds (517,834) $ $ 516,291
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
Donated Infrastructure
(Current Year Depreciation)
2,765,065 $ 1,436,084 $
1,178,893 0
(1,026,427) (1,108,501)
2,917,531 327,583
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. 102,723 0
The changes in net pension liability and pension
related deferred outflows and inflows of
resources result in an adjustment to pension
expense in the statement of activities, but
not in the governmental fund statements. (74,055) (331,193)
Some expenses/revenues reported in the statement
of activities do not require the use of or provide
current financial resources and, therefore, are not
reported as expenditures in governmental funds:
Compensated Absences
Other Postemployment Benefits Obligation
(104,233)
(25,203)
(129,436)
(2,711)
(21,656)
(24,367)
Change in Net Position - Governmental Activities 2,298,929 $ $ 488,314
See accompanying notes.
6
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2015
2016
Business-type Activities - Enterprise Funds
Building Code 2015
Utility Stormwater Sanitation Enforcement Totals Totals
Assets
Current Assets:
Equity in Pooled Cash and Investments 5,600,046 $ 1,874,372 $ 602,390 $ 505,001 $ $ 8,581,809 $ 7,495,552
Accounts Receivable - Net 491,462 49,634 69,975 0 611,071 548,386
Due from Other Governments 35,244 0 0 0 35,244 35,244
Inventories 12,827 0 0 0 12,827 12,827
Notes Receivable - Current 15,759 0 0 0 15,759 15,759
Prepaid Items 0 0 0 0 0 16,105
Restricted Assets:
Equity in Pooled Cash and Cash Equivalents 1,984,814 0 0 0 1,984,814 1,218,056
Capital Assets:
Land 749,499 906,519 0 0 1,656,018 1,656,018
Buildings 4,356,384 0 0 0 4,356,384 4,356,384
Improvements Other Than Buildings 64,778,738 18,296,735 0 0 83,075,473 79,512,656
Equipment 1,813,407 337,447 189,877 60,351 2,401,082 2,328,381
Intangibles - Easements and Computer Software 226,394 0 0 18,315 244,709 244,709
(Accumulated Depreciation and Amortization) (41,976,372) (9,170,623) (182,903) (60,332) (51,390,230) (49,051,642)
Construction in Progress 416,244 324,167 0 0 740,411 560,408
Notes Receivable - Noncurrent 123,346 0 0 0 123,346 124,426
Total Assets 38,627,792 12,618,251 679,339 523,335 52,448,717 49,073,269
Deferred Outflows of Resources
Unamortized Refunding Loss 845,195 126,294 0 0 971,489 1,079,432
Pension Related 987,046 49,070 11,842 116,750 1,164,708 1,003,201
Total Deferred Outflows 1,832,241 175,364 11,842 116,750 2,136,197 2,082,633
See accompanying notes.
7
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2015
(Concluded)
2016
Business-type Activities - Enterprise Funds
Building Code 2015
Utility Stormwater Sanitation Enforcement Totals Totals
Liabilities
Current Liabilities Payable from Current Assets:
Accounts Payable and Other Current Liabilities 254,523 $ 50,130 $ 231,772 $ 13,478 $ $ 549,903 $ 375,992
Construction Retainages Payable 6,255 0 0 0 6,255 24,819
Due to Other Governments 7,179 0 0 3,755 10,934 11,066
Unearned Revenue 90,605 29,898 61,490 0 181,993 178,289
Compensated Absences - Current 97,607 472 0 8,005 106,084 68,035
Current Liabilities Payable from Restricted Assets:
Current Portion of Bonds Payable 1,009,200 150,800 0 0 1,160,000 1,090,000
Current Portion of Loans Payable 347,412 0 0 0 347,412 336,895
Accrued Interest Payable 216,162 19,492 0 0 235,654 252,483
Customer Deposits 609,753 0 0 0 609,753 586,894
Noncurrent Liabilities:
Due in More Than One Year 16,835,409 1,522,300 0 0 18,357,709 19,865,122
Compensated Absences - Noncurrent 117,793 0 0 10,433 128,226 139,787
Other Postemployment Benefits Obligation 48,244 10,741 0 8,989 67,974 59,798
Net Pension Liability 2,030,912 101,840 24,378 243,973 2,401,103 2,170,163
Total Liabilities 21,671,054 1,885,673 317,640 288,633 24,163,000 25,159,343
Deferred Inflows of Resources
Pension Related 43,311 1,790 514 3,565 49,180 0
Net Position
Net Investment in Capital Assets 13,017,468 9,147,439 6,974 18,334 22,190,215 19,394,329
Restricted for:
Renewal and Replacement 250,000 0 0 0 250,000 250,000
Debt Service 390,038 0 0 0 390,038 381,162
System Development Fees 735,023 0 0 0 735,023 290,885
Building Code Enforcement 0 0 0 329,553 329,553 251,255
Unrestricted 4,353,139 1,758,713 366,053 0 6,477,905 5,428,928
Total Net Position 18,745,668 $ 10,906,152 $ 373,027 $ 347,887 $ $ 30,372,734 $ 25,996,559
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, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
2016
Business-type Activities - Enterprise Funds
Building Code 2015
Utility Stormwater Sanitation Enforcement Totals Totals
Operating Revenues
Charges for Services:
Customer Charges $ 8,184,344 872,041 $ 1,778,897 $ 525,820 $ $ 11,361,102 $ 10,950,408
Franchise Permits 0 0 8,500 0 8,500 7,500
Miscellaneous Revenues 62,460 839 0 0 63,299 62,419
Total Operating Revenues 8,246,804 872,880 1,787,397 525,820 11,432,901 11,020,327
Operating Expenses
Personal Services 2,074,762 208,286 47,758 337,627 2,668,433 2,483,232
Contractual Services 552,627 149,029 1,351,606 43,910 2,097,172 2,153,781
Supplies 307,175 38,021 0 6,161 351,357 432,888
Repairs and Maintenance 121,248 24,470 5,625 3,817 155,160 147,702
Utilities 360,485 0 0 0 360,485 372,361
Depreciation 1,824,226 510,724 1,543 2,094 2,338,587 2,314,601
Intergovernmental Charges 1,113,777 160,883 137,737 35,027 1,447,424 1,447,424
Other Expenses 199,992 18,576 1,192 9,753 229,513 220,045
(Total Operating Expenses) (6,554,292) (1,109,989) (1,545,461) (438,389) (9,648,131) (9,572,034)
Operating Income (Loss) 1,692,512 (237,109) 241,936 87,431 1,784,770 1,448,293
Nonoperating Revenues (Expenses)
Connection Charges 38,663 0 0 0 38,663 32,750
Franchise Fees 0 0 66,114 0 66,114 61,452
Investment Earnings (Loss) 97,021 26,060 7,780 6,777 137,638 (5,518)
Interest Expense (481,693) (38,983) 0 0 (520,676) (604,675)
Gain on Disposal of Fixed Assets 0 0 0 0 0 9,897
Amortization of Refunding Loss (93,910) (14,033) 0 0 (107,943) (113,227)
Total Nonoperating Revenues (Expenses) (439,919) (26,956) 73,894 6,777 (386,204) (619,321)
See accompanying notes.
9
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
(Concluded)
2016
Income (Loss) Before Contributions
and Transfers $
Utility
1,252,593
Building Code
Stormwater Sanitation Enforcement
(264,065) $ 315,830 $ 94,208 $
Business-type Activities - Enterprise Funds
$
Totals
1,398,566 $
2015
Totals
828,972
Capital Contributions and Grants
and Transfers
Capital Contributions and Grants
Transfers in
Transfers (out)
Total Capital Contributions and Grants
and Transfers
1,996,750
0
(621,090)
1,375,660
1,831,683
0
0
1,831,683
0
0
(229,734)
(229,734)
0
0
0
0
3,828,433
0
(850,824)
2,977,609
341,713
260,000
(838,210)
(236,497)
Change in Net Position 2,628,253 1,567,618 86,096 94,208 4,376,175 592,475
Net Position, Beginning of Year 16,117,415 9,338,534 286,931 253,679 25,996,559 25,404,084
Net Position, End of Year $ 18,745,668 10,906,152 $ 373,027 $ 347,887 $ $ 30,372,734 $ 25,996,559
See accompanying notes.
10
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
2016
Business-type Activities - Enterprise Funds
Building Code 2015
Utility Stormwater Sanitation Enforcement Totals Totals
Cash Flows from Operating Activities
Cash Received from Customers $ 8,209,670 878,034 $ 1,784,334 $ 525,820 $ $ 11,397,858 $ 11,088,675
Cash Paid to Customer for Return of Deposit 0 0 0 0 0 (355,732)
Cash Paid to Suppliers (1,478,217) (245,469) (1,239,049) (59,500) (3,022,235) (4,068,790)
Cash Paid to Employees (1,945,548) (203,962) (46,519) (319,127) (2,515,156) (2,369,207)
Cash Paid for Interfund Services (1,113,777) (160,883) (137,737) (35,027) (1,447,424) (1,447,427)
Net Cash Provided by (Used in) Operating
Activities 3,672,128 267,720 361,029 112,166 4,413,043 2,847,519
Cash Flows from Noncapital Financing
Activities
Connection Charges 38,663 0 66,114 0 104,777 94,202
Transfers in 0 0 0 0 0 260,000
Transfers (out) (621,090) 0 (229,734) 0 (850,824) (838,210)
Net Cash Provided by (Used in) Noncapital
Financing Activities (582,427) 0 (163,620) 0 (746,047) (484,008)
Capital and Related Financing Activities
Capital Grants 454,198 0 0 0 454,198 535,001
Fixed Asset Additions (406,378) (16,808) 0 (18,003) (441,189) (731,740)
Proceeds from Sale of PPE 0 0 0 0 0 9,897
Principal Payments on Long-term Debt (1,285,196) (141,700) 0 0 (1,426,896) (326,697)
Interest Paid (496,872) (40,634) 0 0 (537,506) (447,162)
Net Cash Provided by (Used in) Capital
and Related Financing Activities (1,734,248) (199,142) 0 (18,003) (1,951,393) (960,701)
See accompanying notes.
11
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
(Continued)
2016
Business-type Activities - Enterprise Funds
Building Code 2015
Utility Stormwater Sanitation Enforcement Totals Totals
Cash Flows from Investing Activities
Sale (Purchase) of Investments $ (1,184,347) $ (82,008) $ (165,666) $ (82,049) $ (1,514,070) $ (422,889)
Interest Received 97,021 26,060 7,780 6,551 137,412 (4,810)
Net Cash Provided by (Used in)
Investing Activities (1,087,326) (55,948) (157,886) (75,498) (1,376,658) (427,699)
Net Increase (Decrease) in Cash and
Cash Equivalents 268,127 12,630 39,523 18,665 338,945 975,111
Cash and Cash Equivalents, Beginning of Year 1,244,350 361,134 80,598 82,036 1,768,118 793,007
Cash and Cash Equivalents, End of Year 1,512,477 $ 373,764 $ 120,121 $ 100,701 $ $ 2,107,063 $ 1,768,118
Reconciliation of Operating Income (Loss) to Net
Cash Provided by (Used in) Operating Activities
Operating Income (Loss) $ 1,692,512 (237,109) $ 241,936 $ 87,431 $ $ 1,784,770 $ 1,448,293
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided by
(Used in) Operating Activities:
Depreciation 1,824,226 510,724 1,543 2,094 2,338,587 2,314,601
Change in Assets and Liabilities:
Accounts Receivable (61,559) 4,358 (4,404) 0 (61,605) 84,521
Prepaids 16,105 0 0 0 16,105 16,105
Compensated Absences 18,406 (622) 0 8,704 26,488 (21,641)
OPEB Obligation 6,348 629 0 1,199 8,176 7,962
Accounts Payable and Accrued Liabilities 47,205 (15,373) 119,374 4,141 155,347 (740,311)
Customer Deposits 22,859 0 0 0 22,859 (373,088)
Unearned Revenue 1,566 796 1,341 0 3,703 1,319
Change in Deferred Outflow (142,234) (5,877) (1,689) (11,707) (161,507) (610,538)
Change in Deferred Inflow 43,311 1,790 514 3,565 49,180 0
Change in Net Pension Liability 203,383 8,404 2,414 16,739 230,940 720,296 Net Cash Provided by (Used in) Operating Activities 3,672,128 $ 267,720 $ 361,029 $ 112,166 $ $ 4,413,043 $ 2,847,519
See accompanying notes.
12
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
(Concluded)
2016
Reconciliation of Cash and Cash Equivalents
to Balance Sheet
Utility
Building Code
Stormwater Sanitation Enforcement
Business-type Activities - Enterprise Funds
Totals
2015
Totals
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
$
$
5,600,046
1,984,814
(6,072,383)
1,512,477
1,874,372 $ 602,390 $ 505,001 $
0 0 0
(1,500,608) (482,269) (404,300)
373,764 $ 120,121 $ 100,701 $
$
$
8,581,809
1,984,814
(8,459,560)
2,107,063
$
$
7,495,552
1,218,056
(6,945,490)
1,768,118
Supplemental Disclosure of Noncash Activities
Contributed Assets $ 1,542,649 1,831,683 $ $ 0 0$ $ 3,374,332 $ 0
See accompanying notes.
13
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF FIDUCIARY
NET POSITION
SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2015
Pension Trust Funds
2016 2015
Assets
Cash and Cash Equivalents 358,042 $ $ 137,107
Money Markets 1,975,324 4,846,615
Due from Other Governments 112,972 0
Interest Receivable 17,821 8,921
Investments at Fair Value 23,535,349 18,508,817
Total Assets 25,999,508 23,501,460
Liabilities
Accounts Payable and Accrued Liabilities 0 0
Total Liabilities 0 0
Net Position
Net Position Restricted for Pensions 25,999,508 $ $ 23,501,460
See accompanying notes.
14
CITY OF ATLANTIC BEACH, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY
NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
Pension Trust Funds
2016 2015
Additions
Contributions:
Employer 1,841,817 $ 1,437,627 $
Employees 245,218 248,545
State of Florida 112,972 103,528
Total Contributions 2,200,007 1,789,700
Net (Decrease) Increase in
Fair Value of Investments 2,032,332 189,300
Interest and Dividends 390,564 139,274
Total Additions 4,622,903 2,118,274
Deductions
Refunds of Contributions 55,569 28,505
Benefits 1,906,700 1,555,728
Investment Expenses 100,158 122,714
Administrative Expenses 62,428 77,894
Total Deductions 2,124,855 1,784,841
Change in Net Position 2,498,048 333,433
Net Position, Beginning of Year 23,501,460 23,168,027
Net Position, End of Year 25,999,508 $ 23,501,460 $
See accompanying notes.
15
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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 government which
comprises an elected City Commission (four Commissioners and a Mayor-Commissioner) and
provides, under the administration of an appointed City Manager, the following services: public
safety, public works (streets and infrastructure), recreation, sanitation, stormwater, reuse,
planning, zoning, water and sewer, and general government services.
In accordance with the Codification of 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 nonfiduciary 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
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(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 reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the 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 reported as program revenues include: (1) charges to customers or applicants for goods,
services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and
contributions, including special assessments. General revenues include all taxes.
Net position is reported as one of three categories: (1) Net Investment in Capital Assets;
(2) Restricted; or (3) Unrestricted.
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within
sixty days of the end of the current fiscal period. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences, other postemployment benefits, pension expense,
and claims and judgments, are recorded only when payment is due.
Taxes, intergovernmental revenue, licenses and permits, 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 current fiscal period. All other revenue items are considered
to be measurable and available only when cash is received by the City.
17
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 1 -Summary of Significant Accounting Policies (Continued)
Fund Financial Statements (Concluded)
The City reports the following major governmental fund:
■ The General Fund is the City’s primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The City reports the following major proprietary funds:
■ The Utility Fund accounts for the activities of the 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 Stormwater 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
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(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 reported 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
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(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 current
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 funds, it is the
City’s policy to use restricted resources first, then unrestricted resources as they are needed.
20
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(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 Years
Buildings and Improvements 10 – 40
Improvements Other Than Buildings 10 – 50
Infrastructure 25 – 100
Machinery and Equipment 3 – 40
Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of
net position. Bond premiums, discounts, and refunding losses are deferred and amortized over
the life of the bonds using the effective interest method. Bond issuance costs are expensed when
incurred with the exception of bond insurance, which is amortized over the term of the related
debt.
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 government-wide
and proprietary fund financial statements.
21
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 1 -Summary of Significant Accounting Policies (Continued)
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.
Unamortized Refunding Loss—the difference between the net reacquisition cost of new debt and
the net carrying amount of the old debt is recorded as a deferred outflow of resources. The
unamortized refunding loss is recognized as expense over the remaining term of the new debt
using the straight-line method.
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 reported 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 properties and the collection of all property taxes are made through the
Property Appraiser and Tax Collector of the City of Jacksonville, Florida. General property 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 normal 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.
22
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 1 -Summary of Significant Accounting Policies (Concluded)
Prior Period Information
The financial statements include certain prior year summarized comparative information 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, 2015, from
which the summarized information was derived.
Future GASB Pronouncement Implementations
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions, replaces the requirements of Statements No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and
No. 57, OPEB Measurements by Agent Employers and Agent Multi-Employer Plans, for OPEB.
This Statement establishes new accounting and financial reporting requirements for governments
whose employees are provided with OPEB, including the recognition and measurement of
liabilities, deferred outflows of resources, deferred inflows of resources, and expenses. For each
qualifying plan providing postemployment benefits other than pensions, employers are required
to report the difference between the actuarial OPEB liability and the related plan’s fiduciary net
position as the net OPEB liability on the statement of net position. Previously, a liability was
recognized only to the extent that contributions made to each plan were exceeded by the actuarially
calculated contributions for those plans. Additionally, Statement No. 75 sets forth note disclosure
and required supplementary disclosure requirements for defined contribution OPEB. The City is
currently evaluating the impact that adoption of this Statement will have on its financial
statements. This statement is effective for fiscal years beginning after June 15, 2017.
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. In addition,
investments are separately held and individually accounted for where contractual arrangements
and bond covenants provide for and require such arrangements.
At September 30, 2016, the carrying amount of cash on hand and on deposit with banks, including
interest-bearing deposits was $6,021,553, and the related bank balance was $6,321,970. 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.
23
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 2 -Cash and Investments (Continued)
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, 2016:
Investment Maturities
Less More
Investment Credit Fair Than 1-5 6-10 Than
Type Rating Value 1 Year Years Years 10 Years Total
Money Market Funds:
Morgan Stanley, N.A. Unrated $ 4,239,633 $ 4,239,633 $ 0 $ 0 $ 0 $ 0
Mutual Funds:
Delaware Diversified Income A Unrated 2,557,311 2,557,311 0 0 0 0
Guggenheim Floating Rate
Strategy Class A Unrated 4,301,668 4,301,668 0 0 0 0
Invesco Floating Rate
Income Class A Unrated 769,809 769,809 0 0 0 0
Voya Floating Rate A Unrated 4,217,987 4,217,987 0 0 0 0
Florida PRIME A-1 22,934 22,934 0 0 0 0
Total $ 16,109,342 $ 16,109,342 $ 0 $ 0 $ 0 $ 0
Listed below are the investments and maturities in the City’s pension trust funds at September 30,
2016:
Investment Maturities
Investment Fair Less Than 1-5 6-10 More Than
Type Value* 1 Year Years Years 10 Years Total
Cash Deposits and
Money Markets $ 2,333,366 $ 2,333,366 $ 0 $ 0 $ 0 $ 2,333,366
Common Stocks 14,461,526 14,461,526 0 0 0 14,461,526
Corporate Bonds 2,895,480 229,075 1,752,637 642,789 270,979 2,895,480
Mutual Funds 2,512,926 2,512,926 0 0 0 2,512,926
Government and
GSE Bonds 3,202,176 52,004 1,516,148 737,958 896,066 3,202,176
ICMA Self Directed 481,062 481,062 0 0 0 481,062
Total $ 25,886,536 $ 20,069,959 $ 3,268,785 $ 1,380,747 $ 1,167,045 $ 25,886,536
* Fair value balances reported include interest receivable.
The total pension investment balances of the City at September 30, 2016, are comprised of the
following items:
24
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 2 -Cash and Investments (Continued)
Moody’s Percent
Investment Credit of
Type Rating Total
Corporate Bonds A1 0.478%
Corporate Bonds A2 0.487%
Corporate Bonds A3 2.561%
Corporate Bonds AA1 0.481%
Corporate Bonds AAA 1.854%
Corporate Bonds BAA1 3.820%
Corporate Bonds BAA2 0.501%
Corporate Bonds BAA3 1.004%
Government and GSE Bonds AAA 8.908%
Federal MBS Pool NR 3.462%
Mutual Funds NR 1.599%
Stocks NR 63.973%
Cash and Money Market NR 9.014%
ICMA Self Directed NR 1.858%
Credit Risk—It 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.
Fair Value Measurements
The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value
into three levels:
25
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 2 -Cash and Investments (Continued)
Fair Value Measurements (Concluded)
Level 1 Inputs―are quoted prices (unadjusted) for identical assets or liabilities in active
markets that a government can access at the measurement date.
Level 2 Inputs―are inputs other than quoted prices included within Level 1 that are
observable for an asset or liability, either directly or indirectly.
Level 3 Inputs―are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to
Level 3 inputs. If a price for an identical asset or liability is not observable, a government should
measure fair value using another valuation technique that maximizes the use of relevant
observable inputs and minimizes the use of unobservable inputs.
The City’s investments are measured at fair value on a recurring basis. Fair value measurements
are categorized based on the valuation inputs used to measure an asset’s fair value in the hierarchy
described above. The fair value measurements for the City’s operating investments are as follows
at September 30, 2016:
Inves tments by Fair Value Level
City Inves tments :
Mutual Funds
Subtotal - City Inves tments
General Employees ' Pens ion Plan:
U.S. Treas ury Obligations and
Federal Agency Securities
Corporate Bonds
Mutual Funds
Equ ities
ICMA Self Directed
Subtotal - General Employees ' Pens ion Plan
Police Officers ' Pens ion Plan:
U.S. Treas ury Obligations and
Federal Agency Securities
Corporate Bonds
Mutual Funds
Equities
ICMA Self Directed
Subtotal - Police Officers ' Pens ion Plan
Total Inves tments Meas ured at Fair Value
Fair Value Meas urements Us ing
Amount
Quoted Prices in
Active Markets for
Identical As s ets
(Level 1)
S ignificant Other
Obers ervable
Inputs
(Level 2)
S ignificant
Unobs ervable
Inputs
(Level 3)
$ 11,846,775
11,846,775
$ 11,846,775
11,846,775
$ 0
0
$ 0
0
2,216,672 1,202,100 1,014,572 0
1,999,681 0 1,999,681 0
862,144 862,144 0 0
9,890,620 9,890,620 0 0
41,298 41,298 0 0
15,010,415 11,996,162 3,014,253 0
985,504 531,391 454,113 0
895,799 0 895,799 0
1,650,782 1,650,782 0 0
4,570,906 4,570,906 0 0
439,764 439,764 0 0
8,542,755
35,399,945 $ $
7,192,843
31,035,780 $
Weighted
1,349,912
4,364,165 $
0
0
Inves tments Meas ured at the Net As s et
Value (NAV) Amount
Average
Maturity
Credit
Ri s k
Governmental Funds :
State Board of A dminis tration (SBA ):
Flo rid a Prime $ 22,934 50 Day s AAAm (S&P)
26
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 2 -Cash and Investments (Concluded)
Restricted cash and investments at September 30, 2016, in the enterprise funds follows:
Renewal System
Enterprise Customer and Debt Development
Funds Deposits Replacement Service Fees Totals
Utility Fund $ 609,753 $ 250,000 $ 390,038 $ 735,023 $ 1,984,814
Note 3 -Receivables
Receivables, net of the allowance for doubtful accounts at September 30, 2016, consist of the
following:
Less
Total Allowance Accounts
Accounts for Doubtful Receivable
Fund Receivable Accounts Net
General $ 50 $ 0 $ 50
Utility 511,151 (19,689) 491,462
Stormwater 49,634 0 49,634
Sanitation 80,648 (10,673) 69,975
Total $ 641,483 $ (30,362) $ 611,121
Included in accounts receivable are $239,334 of water and sewer revenues earned, but not billed
as of September 30, 2016.
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, 2016:
Notes Receivable $ 139,105
(Current Portion) (15,759)
Total Notes Receivable -Noncurrent $ 123,346
27
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 5 -Capital Assets
Capital asset activity for the fiscal year ended September 30, 2016, is as follows:
Beginning Ending
Balance Increases (Decreases) Balance
Governmental Activities
Capital Assets Not Being Depreciated:
Land $ 10,363,002 $ 200,570 $ 0 $ 10,563,572
Construction in Progress 396,861 2,185,413 (25,229) 2,557,045
Total Capital Assets Not
Being Depreciated 10,759,863 2,385,983 (25,229) 13,120,617
Capital Assets Being Depreciated:
Buildings 4,574,646 0 0 4,574,646
Intangible Assets 381,939 27,858 0 409,797
Improvements Other Than Buildings 40,075,877 1,263,259 0 41,339,136
Machinery and Equipment 4,050,946 292,087 0 4,343,033
Total Capital Assets Being Depreciated 49,083,408 1,583,204 0 50,666,612
Less Accumulated Depreciation for:
Buildings (1,975,693) (119,803) 0 (2,095,496)
Intangible Assets (343,956) (10,289) 0 (354,245)
Improvements Other Than Buildings (14,925,041) (677,862) 0 (15,602,903)
Machinery and Equipment (3,056,447) (218,472) 0 (3,274,919)
Total Accumulated Depreciation (20,301,137) (1,026,426) 0 (21,327,563)
Total Capital Assets Being
Depreciated, Net 28,782,271 556,778 0 29,339,049
Governmental Activities Capital
Assets, Net $ 39,542,134 $ 2,942,761 $ (25,229) $ 42,459,666
Business-type Activities
Capital Assets Not Being Depreciated:
Land $ 1,656,018 $ 0 $ 0 $ 1,656,018
Construction in Progress 560,408 368,486 (188,483) 740,411
Total Capital Assets Not Being Depreciated 2,216,426 368,486 (188,483) 2,396,429
Capital Assets Being Depreciated:
Buildings 4,356,384 0 0 4,356,384
Intangible Assets 244,709 0 0 244,709
Improvements Other Than Buildings 79,512,656 3,562,816 0 83,075,472
Machinery and Equipment 2,328,381 72,702 0 2,401,083
Total Capital Assets Being Depreciated 86,442,130 3,635,518 0 90,077,648
Less Accumulated Depreciation for:
Buildings (4,285,890) (8,812) 0 (4,294,702)
Intangible Assets (30,473) (190) 0 (30,663)
Improvements Other Than Buildings (42,935,659) (2,245,268) 0 (45,180,927)
Machinery and Equipment (1,799,622) (84,316) 0 (1,883,938)
Total Accumulated Depreciation (49,051,644) (2,338,586) 0 (51,390,230)
Total Capital Assets Being Depreciated,
Net 37,390,486 1,296,932 0 38,687,418
Business-type Activities Capital Assets,
Net $ 39,606,912 $ 1,665,418 $ (188,483) $ 41,083,847
28
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(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
$
$
127,738
151,640
517,354
229,694
1,026,426
Business-type Activities
Utility
Stormwater
Sanitation
Building Code Enforcement
Total Depreciation Expense -Business-type Activities
$
$
1,824,225
510,724
1,543
2,094
2,338,586
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 Annual
Installments of Principal and Semiannual Installments of Interest Through
October 1, 2025, Bearing Coupon Rates of 2.330%, 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 $ 12,870,000
Loans Payable
Florida Department of Environmental Protection, Disbursements and
Capitalized Interest for a $773,030 State of Florida Revolving Loan
#DW160710, 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 of Principal
and Interest Through November 15, 2030, with Financing Rates of
2.71%, 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 594,779
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 6,400,342
Total Revenue Bonds and Loans Payable $ 19,865,121
29
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 6 -Long-term Debt (Continued)
The annual requirements to amortize all revenue bonds and loans payable outstanding at
September 30, 2016, are as follows:
Business-type Activities
Year Ending Long-term Debt
September 30 Principal Interest Total
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 1,657,875 342,251 2,000,126
2022-2026 8,961,251 1,056,521 10,017,772
2027-2031 2,489,757 294,461 2,784,218
2032 500,144 11,809 511,953
Total $ 19,865,121 $ 3,475,225 $ 23,340,346
Interest and amortization incurred during the year ended September 30, 2016, amounted to
$628,619. Of the 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, 2016, 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, 2016:
Balance Balance Due
October 1, September 30, Within
2015 Additions Reductions 2016 One Year
Governmental Activities
Compensated Absences $ 573,231 $ 384,711 $ (280,477) $ 677,465 $ 308,643
OPEB Obligation 178,501 25,203 0 203,704 0
Net Pension Liability 7,813,357 474,837 0 8,288,194 0
Total Governmental Activities
Long-term Liabilities $ 8,565,089 $ 884,751 $ (280,477) $ 9,169,363 $ 308,643
Business-type Activities
State Revolving Fund Loans $ 7,332,017 $ 0 $ (336,896) $ 6,995,121 $ 347,412
Revenue Bonds Payable 13,960,000 0 (1,090,000) 12,870,000 1,160,000
Total Bonds/Loans Payable 21,292,017 0 (1,426,896) 19,865,121 1,507,412
Compensated Absences 207,822 142,197 (115,709) 234,310 106,084
OPEB Obligation 59,798 8,176 0 67,974 0
Net Pension Liability 2,170,163 230,940 0 2,401,103 0
Total Business-type Activities
Long-term Liabilities $ 23,729,800 $ 381,313 $ (1,542,605) $ 22,568,508 $ 1,613,496
30
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 6 -Long-term Debt (Concluded)
Conduit Debt
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, 2016, there are two series of Health Facility Revenue and
Refunding Bonds outstanding, with an aggregate principal amount payable of $55,085,000.
Pledged Revenue
The City has pledged certain revenues to repay certain bonds and notes outstanding as of
September 30, 2016. 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, 2016:
Outstanding
Net Principal Estimated Principal
Pledged Revenue and Interest Percentage and Pledged
Description Revenue Received Paid Pledged Interest Through
2014 – Utility System Utility
Refunding Bonds Revenues $ 3,652,076 $ 1,402,569 38.40% $ 14,425,858 2026
Florida Department of
Environmental Utility
Protection, SRF Loan Revenues 3,652,076 49,879 1.37% 723,242 2031
Florida Department of
Environmental Utility
Protection, SRF Loan Revenues 3,652,076 511,953 14.02% 8,191,246 2032
Note 7 -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.
31
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
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 governed 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, 2016 and 2015, is as follows:
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
September 30,
2016
67
12
39
118
September 30,
2015
64
12
43
119
Plan Benefits
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
April 24, 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, 2016, Plan
net position included $41,298 of DROP account balances.
Contributions
The City is required to contribute at an actuarially determined rate (52.06%) of valuation payroll
for the year ended September 30, 2016. City contributions to the Plan were $1,112,344 for the
year ended September 30, 2016. Plan members are required to contribute 6.0% of their annual
covered salary. Contribution requirements are established by City code, which may be amended
by the City Commission.
Measurement Date
The City elected to use a measurement date to value the net pension liability and related deferred
inflows and outflows as of September 30, 2015, one year prior to the reporting date. The City’s
Pension Plans do not issue separate financial statements. Therefore, the disclosures required for
the Plan as of September 30, 2016, are also included below.
32
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
General Employees’ Retirement Plan (Continued)
Total Pens ion Plan Fiduciary Net Pens ion
Liability Net Pos ition Liability
Balances at September 30, 2014 20,175,164 $ 14,919,308 $ 5,255,856 $
Changes for the Year:
Service Cos t 402,093 0 402,093
Interes t 1,404,316 0 1,404,316
Difference Between Expected and Actual
Experience of the Total Pens ion Liability (162,280) 0 (162,280)
Contributions - Employer 0 863,613 (863,613)
Contributions - State 0 0 0
Contributions - Employee 0 136,191 (136,191)
Net Inves tment Income 0 162,326 (162,326)
Benefit Payments , Including
Refunds of Contributions (1,031,191) (1,031,191) 0
Adminis trative Expens es 0 (41,909) 41,909
Net Changes 612,938 89,030 523,908
Balances at September 30, 2015 20,788,102 $ 15,008,338 $ 5,779,764 $
September 30, 2016
Total Pension Liability $ 21,530,799
Plan Net Position (16,524,333)
Net Pension Liability $ 5,006,466
General Employees’ Retirement Plan Net Position as a Percentage
of Total Pension Liability 76.75%
For the year ended September 30, 2016, the City recognized total pension expense of $1,381,429.
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 $ 777,626
Net Difference Between Projected and Actual Earnings 906,045
Contributions Made Subsequent to Measurement Date 1,112,344
Total Deferred Outflows of Resources $ 2,796,015
Deferred Inflows of Resources
Difference Between Expected and Actual Experience $ 111,567
Total Deferred Inflows of Resources $ 111,567
33
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
General Employees’ Retirement Plan (Continued)
Contributions made after the measurement date (shown above) will be recognized in the fiscal
year ended September 30, 2017. Other amounts reported as deferred outflows of resources related
to pensions will be recognized in pension expense as follows:
Year Ended
September 30 Amount
2017 $ 711,088
2018 451,880
2019 233,244
2020 175,892
Total $ 1,572,104
Plan Investments
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%. The money-weighted
rate of return on Plan investments, net of investment related expenses, was 10.18% and 1.10% for
the years ended September 30, 2016 and 2015, respectively.
Actuarial Assumptions
The total pension liability was determined by actuarial valuations for the Plan as of September 30,
2015, rolled forward to September 30, 2016, using the following actuarial assumptions, applied to
all periods included in the measurement:
Inflation: 2.50%
Salary Increases: Age based ranging from 5.00% - 13.50%
Investment Rate of Return: 7.00%, net of investment expenses, including
inflation
Mortality: RP2000 Combined Health Participant Mortality
Table for males and females with generational
projections from the Year 2000 Projection Scale
AA
Date of Experience Study: Other significant actuarial assumptions used in the
September 30, 2015 valuation were based on the
results of an actuarial experience study (dated
February 15, 2011) for the period October 1, 2001
- September 30, 2010
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense of 0.50% and inflation of 2.50%) 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 of the pension plans’ investment policy) are summarized in the following table:
34
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
General Employees’ Retirement Plan (Concluded)
Actuarial Assumptions (Concluded)
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-bill) 10% 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 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 return on 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 of 7.00%, 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 1-percentage-point higher (8.00%) than the current rate:
As of September 30, 2016:
Net Pension 1% Decrease Current Discount 1% Increase
Liability (6.00%) Rate (7.00%) (8.00%)
General Employees’
Pension Plan $ 7,323,796 $ 5,006,466 $ 3,014,515
As of September 30, 2015:
Net Pension 1% Decrease Current Discount 1% Increase
Liability (6.00%) Rate (7.00%) (8.00%)
General Employees’
Pension Plan $ 8,074,170 $ 5,779,764 $ 3,819,787
35
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
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 of which 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 of the Police Plan, and one of which will be elected by the other
four trustees. Membership in the Police Officers’ Retirement Plan as of September 30, 2016 and
2015, is as follows:
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
September 30,
2016
21
5
23
49
September 30,
2015
21
6
19
46
Plan Benefits
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 of ten 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 of ten 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 equal 3.00% of
average final compensation for each year of credited service. For members hired on or after
January 1, 2013, the normal retirement benefit shall equal 2.00% 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, 2016, Police
Plan net position included $439,764 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 57.47% of valuation payroll for
the year ended September 30, 2016). City and State contributions to the Police Plan were
$842,455 for the year ended September 30, 2016. Police Plan members are required to contribute
8.0% of their annual covered salary. Per City Code, the City Commission may amend established
contribution requirements.
36
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
Police Officers’ Retirement Plan (Continued)
Measurement Date
The City elected to use a measurement date to value the net pension liability and related deferred
inflows and outflows as of September 30, 2015, one year prior to the reporting date. The City’s
Pension Plans do no issue separate financial statements. Therefore, the disclosures required for
the Plan as of September 30, 2016, are also included below:
Total Pens ion Plan Fiduciary Net Pens ion
Liability Net Pos ition Liability
Balances at S eptember 30, 2014 12,855,926 $ 8,128,264 $ 4,727,662 $
Changes for the Year:
Service Cos t 291,761 0 291,761
Interes t 900,982 0 900,982
Changes of As s umptions 0 0 0
Difference Between Expected and Actual
Experience of the Total Pens ion Liability (213,426) 0 (213,426)
Contributions - Employer 0 574,014 (574,014)
Contributions - State 0 103,528 (103,528)
Contributions - Employee 0 112,354 (112,354)
Net Inves tment Income 0 43,534 (43,534)
Benefit Payments , including
Refunds of Contributions (553,042) (553,042) 0
Pens ion Plan Adminis trative Expens e 0 (35,984) 35,984
Other 120,454 120,454 0
Net Changes 546,729 364,858 181,871
Balances at S eptember 30, 2015 13,402,655 $ 8,493,122 $ 4,909,533 $
September 30, 2016
Total Pension Liability $ 13,856,425
Plan Net Position (9,473,354)
Net Pension Liability $ 4,383,071
Police Officers’ Retirement Plan Net Position as a Percentage
of Total Pension Liability 68.37%
For the year ended September 30, 2016, the City recognized total pension expense of $869,568. The
City reported deferred outflows of resources and deferred inflows of resources related to the Police
Plan from the following sources:
37
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
Police Officers’ Retirement Plan (Continued)
Measurement Date (Concluded)
Deferred Outflows of Resources
Net Difference Between Projected and Actual Earnings
on Pension Plan Investments $ 396,110
Assumption Changes 708,705
Contributions Made Subsequent to Measurement Date 842,455
Total Deferred Outflows of Resources $ 1,947,270
Deferred Inflows of Resources
Differences Between Project and Actual Experience $ 162,610
Total Deferred Outflows of Resources $ 162,610
Contributions made after the measurement date (shown above) will be recognized in the fiscal
year ended September 30, 2017. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended
September 30 Amount
2017 $ 329,204
2018 329,204
2019 187,464
2020 96,333
2021 0
Thereafter 0
Total $ 942,205
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%. The money-weighted rate of return on Plan investments, net of investment related
expenses, was 9.93% and 0.53% for the years ended September 30, 2016 and 2015, respectively.
Actuarial Assumptions
The total pension liability was determined by actuarial valuations for the Plan as of September 30,
2015, rolled forward to September 30, 2016, using the following actuarial assumptions, applied to
all periods included in the measurement:
38
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Continued)
Police Officers’ Retirement Plan (Continued)
Actuarial Assumptions (Continued)
Inflation: 2.50%
Salary Increases: Age based ranging from 4.50% - 22.50% (including
2.5% price inflation)
Investment Rate of Return: 7.00% per year compounded annually, net of
investment expenses
Mortality: RP2000 Combined Health Participant Mortality
Table for males and females with generational
projections from the Year 2000 Projection Scale AA
Date of Experience Study: Other significant actuarial assumptions used in the
September 30, 2015, valuation were based on the
results of an actuarial experience study for the period
October 1, 2001 -September 30, 2010.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense of 0.50% and inflation of 2.50%) 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 of the pension plans’ investment policy) are summarized in the following table:
Long-term Expected
Asset Class Target 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-bill) 10% 0.2%
39
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 7 -Defined Benefit Pension Plans (Concluded)
Police Officers’ 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 Police 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 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 of 7.00%, 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 1-percentage-point higher (8.00%) than the current rate:
September 30, 2016
Net Pension
Liability
Police Officers’
Pension Plan
1% Decrease
(6.00%)
$ 6,035,220
Current Discount
Rate (7.00%)
$ 4,383,071
1% Increase
(8.00%)
$ 3,000,045
September 30, 2015
Net Pension
Liability
Police Officers’
Pension Plan
1% Decrease
(6.00%)
$ 6,525,880
Current Discount
Rate (7.00%)
$ 4,909,533
1% Increase
(8.00%)
$ 3,565,056
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
$64,723 and $57,604 for the years ended September 30, 2016 and 2015, respectively. Under the
457 Plan, an employee is considered fully vested after 5 years of completed service.
40
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
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 opportunity to participate 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, 2015, the date of the latest
actuarial valuation:
Retirees and Beneficiaries Receiving Benefits
Active Plan Members
Total
2
108
110
Funding Policy
Contribution rates for the Plan are established on an annual basis by the City Commission.
Eligible retirees and their covered dependents receiving benefits contribute 100% 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 $49,250
for the current fiscal year. The ARC is based on a rate of .09% of projected payroll of $5,459,992
or an average $456 per active participant. For the year ended September 30, 2016, the City
estimated it implicitly subsidized $15,042 of health care costs for its retirees and covered
dependents. This implied subsidy reduced the annual OPEB cost to a net expense of $33,379
after interest on the Net OPEB Obligation and adjustments to ARC.
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:
41
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 9 -Postemployment Benefits Other Than Pensions (Continued)
Annual OPEB Cost and Net OPEB Obligation
Annual Required Contribution $ 49,250
Interest on Net OPEB Obligation 9,532
Adjustment to Annual Required Contribution (10,361)
Annual OPEB Cost (Expense) 48,421
Employer Contribution (15,042)
Increase in Net OPEB Obligation 33,379
Net OPEB Obligation -Beginning of Year 238,298
Net OPEB Obligation -End of Year $ 271,677
The City reflected the $33,379 increase in net OPEB obligation at September 30, 2016, by
recording an obligation of $25,203 for governmental activities and $8,176 for business-type
activities in its government-wide statement of net position. The utility fund reported a net OPEB
obligation of $48,244, while the stormwater fund and building code enforcement fund reported
$10,741 and $8,989, 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, 2016, are presented below.
Percentage
Fiscal Annual of Annual Net
Year OPEB OPEB Cost OPEB
Ended Cost Contributed Obligation
September 30, 2014 $ 46,487 37.87% $ 208,681
September 30, 2015 49,357 39.99% 238,298
September 30, 2016 48,421 31.07% 271,677
Funded Status and Funding Progress
As of October 1, 2015, the date of the latest actuarial valuation, the actuarial accrued liability for
benefits was $406,200, all of which was unfunded. The covered payroll (annual payroll of active
employees covered by the Plan) was $5,459,992, and the ratio of the unfunded actuarial accrued
liability to the covered payroll was 7.44%. 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.
42
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(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, 2015, 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 23-year period.
Other significant actuarial assumptions include a 4% discount rate, an annual health care cost
trend rate of 9%, followed by 8% for the next year, followed by 6.25% for the next year, reduced
by decrements of 0.45% each year to the ultimate value of 4.45%, and projected salary increases
of 4% annually (including general price inflation of 2.5%).
Note 10 -Interfund Accounts
Individual fund interfund receivables and payables at September 30, 2016, consist of the following:
Due Due
from Other to Other
Funds Funds
General $ 75,035 $ 0
Nonmajor Governmental 0 75,035
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 -Interfund 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 reported 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, 2016:
Transfers In
Nonmajor
General Governmental Total
Transfers Out Fund Funds Transfers
General Fund $ 0 $ 575,300 $ 575,300
Nonmajor Governmental Funds 195,050 565,000 760,050
Utility Fund 621,090 0 621,090
Sanitation Fund 229,734 0 229,734
Total Transfers $ 1,045,874 $ 1,140,300 $ 2,186,174
43
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Continued)
Note 11 -Interfund Transfers (Concluded)
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.
Note 12 -Commitments
As of September 30, 2016, the City had outstanding commitments on contracts in progress as
follows:
Unexpended
Project Type Contract Amounts
Utility System Improvements $ 911,064
Stormwater System Improvements 21,684
Building Department 8,854
General Government Improvements 880,245
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, 2016, the City incurred
$1,099,125 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 litigation 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 carries 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.
44
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Concluded)
Note 15 -Other Disclosures
Deficit Fund Balance
CDBG Fund
The City has an accumulated negative fund balance of $104,671 at September 30, 2016, in the
CDBG fund. This is due to a timing difference between when the expenditures occurred and when
the related reimbursements were received. This negative fund balance will be recovered in fiscal
year 2017.
Subsequent Event
On October 7, 2016, Hurricane Matthew hit Atlantic Beach, causing extensive damage to the
City’s beaches requiring substantial debris clean up. The cost of removing debris was
approximately $341,187. A portion of the costs to remove debris and repair damages are expected
to be reimbursed by the Federal Emergency Management Agency, however, these amounts are not
yet known.
45
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ATLANTIC BEACH, FLORIDA
GENERAL EMPLOYEES' PENSION PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
September 30, September 30, September 30,
2016 2015 2014
Total Pension Liability
Service Cost $ 348,604 $ 402,093 $ 399,576
Interest 1,437,296 1,404,316 1,386,245
Difference Between Actual and
Expected Experience 164,601 (162,280) 0
Changes in Assumptions 0 0 1,814,460
Benefit Payments (1,175,906) (1,031,191) (697,702)
Refunds (31,898) 0 (9,516)
Net Change in Total Pension Liability 742,697 612,938 2,893,063
Total Pension Liability - Beginning 20,788,102 20,175,164 17,282,101
Total Pension Liability - Ending (a) 21,530,799 20,788,102 20,175,164
Plan Fiduciary Net Position
Contributions - Employer 1,112,344 863,613 950,980
Contributions - Employee 128,204 136,191 157,383
Net Investment Income 1,515,746 162,326 778,981
Benefit Payments (1,175,906) (1,031,191) (697,702)
Refunds (31,898) 0 (9,516)
Administrative Expenses (32,495) (41,909) (31,529)
Net Change in Plan Fiduciary Net Position 1,515,995 89,030 1,148,597
Plan Fiduciary Net Position - Beginning 15,008,338 14,919,308 13,770,711
Plan Fiduciary Net Position - Ending (b) 16,524,333 15,008,338 14,919,308
Net Pension Liability - Ending (a) - (b) $ 5,006,466 $ 5,779,764 $ 5,255,856
Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 76.75% 72.20% 73.95%
Covered Employee Payroll $ 2,136,733 $ 2,269,850 $ 2,623,050
Net Pension Liability as a Percentage of Covered
Employee Payroll 234.30% 254.63% 200.37%
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.
46
CITY OF ATLANTIC BEACH, FLORIDA
GENERAL EMPLOYEES' PENSION PLAN
SCHEDULE OF CONTRIBUTIONS
September 30, September 30, September 30,
2016 2015 2014
Actuarially Determined Contribution 1,112,344 $ 863,613 $ 950,980 $
Contributions in Relation to the Actuarially
Determined Contribution 1,112,344 863,613 950,980
Contribution Deficiency (Excess) $ 0 $ 0 $ 0
Covered Employee Payroll 2,136,733 $ 2,269,850 $ 2,623,050 $
Contributions as a Percentage of Covered
Employee Payroll 52.06% 38.05% 36.25%
Additional years will be added to this schedule annually until 10 years of data is presented.
NOTES TO SCHEDULE OF CONTRIBUTIONS
Valuation Date: September 30, 2014
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: Entry Age Normal Cost Method
Amortization Method: Closed, Level Dollar Method
Remaining Amortization Period: 10 years
Asset Valuation Method: 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 of 25% per
year), adjusted to be no greater than 120% and no less than 80% of the fair market value.
Inflation: 2.5% per year
Salary Increases: Age Based Ranging from 5.0% to 13.5% (including 2.5% price inflation)
Interest Rate: 7.0% per year compounded annually, net of investment related expenses.
Retirement Age: Experience-based table of rates that vary by age.
Post Retirement COLA: None
Mortality: RP2000 Combined Healthy Participant Mortality Table for males and females with
generational projections from the year 2000 Projection Scale AA.
Date of the Most Recent
Experience Study: 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.
47
SCHEDULE OF INVESTMENT RETURNS
GENERAL EMPLOYEES' PENSION PLAN
FOR THE YEAR ENDED SEPTEMBER 30, 2016
CITY OF ATLANTIC BEACH, FLORIDA
September 30, September 30,
2016 2015
Annual Money - Weighted Rate of Return
Net of Investment Expense 10.18% 1.10%
Additional years will be added to this schedule annually until 10 years of data is presented.
48
CITY OF ATLANTIC BEACH, FLORIDA
POLICE OFFICERS' PENSION PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
September 30, September 30, September 30,
2016 2015 2014
Total Pension Liability
Service Cost 279,863 $ 291,761 $ 269,182 $
Interest on the Total Pension Liability 931,370 900,982 879,486
Difference Between Actual and Expected Experience (2,998) (213,426) 0
Changes in Assumptions 0 0 1,275,669
Benefit Payments (730,794) (524,537) (524,537)
Refunds (23,671) (28,505) (61,079)
Other (Excess Premium Tax Liability) 0 120,454 0
Net Change in Total Pension Liability 453,770 546,729 1,838,721
Total Pension Liability - Beginning 13,402,655 12,855,926 11,017,205
Total Pension Liability - Ending (a) 13,856,425 13,402,655 12,855,926
Plan Fiduciary Net Position
Contributions - Employer 729,483 574,014 563,203
Contributions - State 112,972 103,528 96,217
Contributions - Member 117,274 112,354 103,095
Net Investment Income 804,901 43,534 642,480
Benefit Payments (730,794) (524,537) (524,537)
Refunds (23,671) (28,505) (61,079)
Administrative Expenses (29,933) (35,984) (22,742)
Other (Excess Premium Tax Liability) 0 120,454 0
Net Change in Plan Fiduciary Net Position 980,232 364,858 796,637
Plan Fiduciary Net Position - Beginning 8,493,122 8,128,264 7,331,627
Plan Fiduciary Net Position - Ending (b) 9,473,354 8,493,122 8,128,264
Net Pension Liability - Ending (a) - (b) 4,383,071 $ 4,909,533 $ 4,727,662 $
Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 68.37% 63.37% 63.23%
Covered Employee Payroll 1,465,925 $ 1,404,425 $ 1,472,786 $
Net Pension Liability as a Percentage of Covered
Employee Payroll 299.00% 349.58% 321.00%
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.
49
CITY OF ATLANTIC BEACH, FLORIDA
POLICE OFFICERS' PENSION PLAN
SCHEDULE OF CONTRIBUTIONS
September 30, September 30, September 30,
2016 2015 2014
Actuarially Determined Contribution* 825,700 $ 665,091 $ 654,280 $
Contributions in Relation to the Actuarially
Determined Contribution* 842,455 677,542 659,420
Contribution Deficiency (Excess) $ (16,755) $ (12,451) $ (5,140)
Covered Employee Payroll 1,465,925 $ 1,404,425 $ 1,472,786 $
Contributions as a Percentage of Covered
Employee Payroll 57.47% 48.24% 44.77%
*Amounts include the contribution from the State of Florida.
Additional years will be added to this schedule annually until 10 years of data is presented.
NOTES TO SCHEDULE
Valuation Date: September 30, 2014
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: Entry Age Normal Cost Method
Amortization Method: Closed, Level % of Pay Method
Remaining Amortization Period: 30 years
Asset Valuation Method: 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.
Inflation: 2.5% per year
Salary Increases: Age Based Ranging from 4.5% to 22.5% (including 2.5% price inflation)
Payroll Growth: 3.50%
Interest Rate: 7.0% per year compounded annually, net of investment related expenses.
Retirement Age: Experience-based table of rates that vary by age
Post Retirement COLA: None
Mortality: RP2000 Combined Healthy Participant Mortality Table for males and females
with generational projections from the year 2000 Projection Scale AA.
Date of the Most Recent
Experience Study: Significant assumptions used in the September 30, 2014 valuation were based on the
results of an actuarial experience study for the period of October 1, 2001
September 30, 2010.
50
SCHEDULE OF INVESTMENT RETURNS
POLICE OFFICERS' PENSION PLAN
FOR THE YEAR ENDED SEPTEMBER 30, 2016
CITY OF ATLANTIC BEACH, FLORIDA
September 30, September 30,
2016 2015
Annual Money - Weighted Rate of Return
Net of Investment Expense 9.93% 0.53%
Additional years will be added to this schedule annually until 10 years of data is presented.
51
CITY OF ATLANTIC BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
SEPTEMBER 30, 2016
Actuarial UAAL as
Actuarial Accrued Unfunded Annual Percentage
Valuation Value of Liability AAL Funded Covered of Covered
Date Assets (AAL) (UAAL) Ratio Payroll Payroll
10/1/09 $ 0 $ 497,883 $ 497,883 0.0% $ 5,828,339 8.54%
10/1/12 0 360,584 360,584 0.0% 4,204,177 8.58%
10/1/15 0 406,200 406,200 0.0% 5,459,992 7.44%
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. The actuarial accrued liability (AAL)
decreased significantly from the last valuation due to a decrease in the number of retirees receiving post-
employment health benefits, as well as a change in the medical trend assumption.
52
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, 2016
Variance With
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Property Taxes $ 4,351,110 $ 4,351,110 $ 4,482,739 $ 131,629
Nonproperty Taxes 1,137,927 1,137,927 1,123,010 (14,917)
Permits, Fees, and Special Assessments 903,350 903,350 848,308 (55,042)
Intergovernmental Revenues 1,779,142 1,779,142 1,819,735 40,593
Fines and Forfeitures 82,900 82,900 54,333 (28,567)
Charges for Services 709,628 709,628 786,053 76,425
Interest Income 118,731 118,731 107,460 (11,271)
Miscellaneous Revenues 45,000 45,000 53,674 8,674
Interfund Charges 1,549,137 1,549,137 1,550,320 1,183
Total Revenues 10,676,925 10,676,925 10,825,632 148,707
Expenditures
Governing Body:
City Commission 40,384 40,384 39,951 433
City Clerk 277,768 281,793 263,460 18,333
City Attorney 96,000 237,185 235,824 1,361
Total Governing Body 414,152 559,362 539,235 20,127
City Administration:
City Manager 244,939 244,939 243,675 1,264
General Government 487,240 492,118 433,450 58,668
Human Resources 211,041 211,041 213,383 (2,342)
Information Technology 701,149 785,697 777,644 8,053
Finance 887,601 925,084 884,840 40,244
Total City Administration 2,531,970 2,658,879 2,552,992 105,887
Planning and Zoning 149,364 241,811 237,466 4,345
Public Safety:
Police 4,250,977 4,286,598 4,081,284 205,314
School Crossing Guards 9,890 9,890 10,017 (127)
Animal Control 96,887 97,288 74,055 23,233
Fire 1,341,455 1,341,469 1,322,614 18,855
Code Enforcement 68,492 68,492 44,372 24,120
Total Public Safety 5,767,701 5,803,737 5,532,342 271,395
53
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, 2016
(Concluded)
Variance With
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (Concluded)
Public Works:
Administration and Streets 1,297,622 $ 1,337,879 $ 1,222,994 $ 114,885 $
Fleet Maintenance 275,090 304,919 234,030 70,889
Total Public Works 1,572,712 1,642,798 1,457,024 185,774
Parks and Recreation:
Recreation and Special Events 432,501 634,888 589,887 45,001
Parks Maintenance 854,399 872,586 768,660 103,926
Total Parks and Recreation 1,286,900 1,507,474 1,358,547 148,927
(Total Expenditures) (11,722,799) (12,414,061) (11,677,606) 736,455
(Deficiency) of Revenues (Under)
Expenditures (1,045,874) (1,737,136) (851,974) 885,162
Other Financing Sources (Uses)
Transfers in 1,045,874 1,045,874 1,045,874 0
Transfers (out) 0 (575,300) (575,300) 0
Total Other Financing Sources (Uses) 1,045,874 470,574 470,574 0
(Deficiency) of Revenues and Other
Financing Sources (Under) Expenditures
and Other Financing Uses 0 (1,266,562) (381,400) 885,162
Fund Balances, Beginning of Year 5,936,554 5,936,554 7,558,457 1,621,903
Fund Balances, End of Year 5,936,554 $ 4,669,992 $ 7,177,057 $ 2,507,065 $
54
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, 2016
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 conformity with accounting principles generally accepted in the
United States of America.
55
SUPPLEMENTARY INFORMATION
CITY OF ATLANTIC BEACH, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
2016
Special Revenue Funds
Assets
Equity in Pooled Cash
and Investments
Due from Other
Governments
Total Assets
Tree
Replacement
34,911 $
0
34,911
$
Local Convention
Option Development Half-cent
Gas Tax Tax Sales Tax
220,546 146,684 $ 628,966 $
78,800 15,274 138,842
299,346 161,958 767,808
Court Cost
Training
87,466 $
220
87,686
Liabilities, Deferred
Inflows of Resources
and Fund Balances
Liabilities
Accounts Payable and
Accrued Liabilities
Construction Retainages Payable
Due to Other Funds
Deposits
Total Liabilities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20
0
0
0
20
Deferred Inflows 0 0 0 0 0
Fund Balances
Restricted for:
Public Safety
Road Maintenance and
Construction
Other Capital Projects
Other Purposes
Committed:
Conservation and Resource
Management
Unassigned
Total Fund Balances
0
0
0
0
34,911
0
34,911
0
299,346
0
0
0
0
299,346
0
0
0
161,958
0
0
161,958
0
767,808
0
0
0
0
767,808
87,666
0
0
0
0
0
87,666
Total Liabilities, Deferred
Inflows of Resources and
Fund Balances 34,911 $ $ 299,346 161,958 $ 767,808 $ 87,686 $
56
2016
Radio
Communication
Community
Contraband Development
Forfeiture Block Grants
Special Revenue Funds
Police
Grants
Totals
Special
Revenues
Funds
Capital
Projects
Totals
Nonmajor
Governmental
Funds
2015
Totals
23,683 $ 49,447 $ 2,314 $ $ 2,193 $ 1,196,210 $ 2,904,547 4,100,757 $ $ 3,822,524
763
24,446
0
49,447
167,856
170,170
9,902
12,095
411,657
1,607,867
0
2,904,547
411,657
4,512,414
247,000
4,069,524
0
0
0
0
0
1,160
0
0
1,426
2,586
106,985
0
65,133
0
172,118
0
0
9,902
0
9,902
108,165
0
75,035
1,426
184,626
329,549
141,942
0
0
471,491
437,714
141,942
75,035
1,426
656,117
168,624
0
10,781
111
179,516
0 0 102,723 0 102,723 0 102,723 0
24,446 46,861 0 2,193 161,166 0 161,166 170,475
0
0
0
0
0
0
0
0
0
0
0
0
1,067,154
0
161,958
0
2,433,056
0
1,067,154
2,433,056
161,958
248,141
3,325,789
128,595
0
0
24,446
0
0
46,861
0
(104,671)
(104,671)
0
0
2,193
34,911
(104,671)
1,320,518
0
0
2,433,056
34,911
(104,671)
3,753,574
18,956
(1,948)
3,890,008
24,446 $ 49,447 $ 170,170 $ $ 12,095 $ 1,607,867 $ 2,904,547 4,512,414 $ $ 4,069,524
57
CITY OF ATLANTIC BEACH, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
2016
Special Revenue Funds
Revenues
Taxes
Other Intergovernmental
Revenues
Fines and Forfeitures
Investment Earnings (Loss)
Miscellaneous Revenues
Total Revenues
Tree
Replacement
0$
0
0
0
15,955
15,955
$
Local
Option
Gas Tax
465,173
0
0
4,151
0
469,324
Convention
Development
Tax
126,652 $
0
0
1,711
0
128,363
Half-cent
Sales Tax
806,405 $
0
0
8,825
0
815,230
Court Cost
Training
0$
0
2,776
1,293
0
4,069
Expenditures
Current:
Culture and Recreation
Public Safety
Road Maintenance and
Construction
Conservation and Resource
Management
Capital Outlay
(Total Expenditures)
0
0
0
0
0
0
0
0
228,119
0
0
(228,119)
0
0
0
0
0
0
0
0
80,413
0
141,867
(222,280)
0
22,560
0
0
0
(22,560)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 15,955 241,205 128,363 592,950 (18,491)
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Total Other Financing
Sources (Uses)
0
0
0
0
(190,000)
(190,000)
0
(95,000)
(95,000)
0
(470,000)
(470,000)
0
0
0
Net Change in Fund Balances 15,955 51,205 33,363 122,950 (18,491)
Fund Balances, Beginning of Year 18,956 248,141 128,595 644,858 106,157
Fund Balances, End of Year 34,911 $ $ 299,346 161,958 $ 767,808 $ 87,666 $
58
2016
Radio
Communication
0$
0
9,138
303
0
9,441
Special Revenue Funds
Community
Contraband Development
Forfeiture Block Grants
0$ 0$
0 335,317
9,675 0
709 0
0 0
10,384 335,317
$
Police
Grants
0
65,417
0
0
0
65,417
Totals
Special
Revenue
Funds
$ 1,398,230
400,734
21,589
16,992
15,955
1,853,500
Capital
Projects
0$
167,000
0
43,542
0
210,542
Totals
Nonmajor
Governmental
Funds
1,398,230 $
567,734
21,589
60,534
15,955
2,064,042
$
2015
Totals
1,362,169
164,876
12,348
(2,025)
7,181
1,544,549
0 0 0 0 0 0 0 500
0 738 0 61,249 84,547 0 84,547 103,287
0 0 0 0 308,532 0 308,532 274,068
0 0 0 0 0 0 0 1,800
0 4,855 438,040 4,168 588,930 1,598,717 2,187,647 860,752
0 (5,593) (438,040) (65,417) (982,009) (1,598,717) (2,580,726) (1,240,407)
9,441 4,791 (102,723) 0 871,491 (1,388,175) (516,684) 304,142
0 0 0 0 0 1,140,300 1,140,300 85,000
0 (5,050) 0 0 (760,050) 0 (760,050) (510,000)
0 (5,050) 0 0 (760,050) 1,140,300 380,250 (425,000)
9,441 (259) (102,723) 0 111,441 (247,875) (136,434) (120,858)
15,005 47,120 (1,948) 2,193 1,209,077 2,680,931 3,890,008 4,010,866
$ 24,446 $ 46,861 $ (104,671) $ 2,193 $ 1,320,518 $ 2,433,056 $ 3,753,574 $ 3,890,008
59
CITY OF ATLANTIC BEACH, FLORIDA
COMBINING STATEMENT OF FIDUCIARY
NET POSITION
SEPTEMBER 30, 2016,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2015
Pension Trust Funds
Police General
Officers' Employees'
Retirement Retirement 2016 2015
Plan Plan Totals Totals
Assets
Cash and Cash Equivalents 197,427 $ 160,615 $ $ 358,042 137,107 $
Money Markets 620,200 1,355,124 1,975,324 4,846,615
Due from Other Governments 112,972 0 112,972 0
Interest Receivable 8,660 9,161 17,821 8,921
Investments at Fair Value 8,534,095 15,001,254 23,535,349 18,508,817
Total Assets 9,473,354 16,526,154 25,999,508 23,501,460
Liabilities
Accounts Payable and Accrued Liabilities 0 0 0 0
Total Liabilities 0 0 0 0
Total Net Position
Held in Trust for Pension
Benefits 9,473,354 $ 16,526,154 $ $ 25,999,508 $ 23,501,460
60
CITY OF ATLANTIC BEACH, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY
NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2016
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015
Pension Trust Funds
Additions
Contributions:
Employer
Employees
State of Florida
Total Contributions
Net Increase in Fair Value
of Investments
Interest and Dividends
Total Additions
Police
Officers'
Retirement
Plan
729,483 $
117,014
112,972
959,469
697,075
141,007
1,797,551
General
Employees'
Retirement
Plan
1,112,334 $
128,204
0
1,240,538
1,335,257
249,557
2,825,352
$
2016
Totals
1,841,817
245,218
112,972
2,200,007
2,032,332
390,564
4,622,903
$
2015
Totals
1,437,627
248,545
103,528
1,789,700
189,300
139,274
2,118,274
Deductions
Refunds of Contributions
Benefits
Investment Expenses
Administrative Expenses
Total Deductions
23,671
730,794
32,921
29,933
817,319
31,898
1,175,906
67,237
32,495
1,307,536
55,569
1,906,700
100,158
62,428
2,124,855
28,505
1,555,728
122,714
77,894
1,784,841
Change in Net Position 980,232 1,517,816 2,498,048 333,433
Net Position, Beginning of Year 8,493,122 15,008,338 23,501,460 23,168,027
Net Position, End of Year 9,473,354 $ 16,526,154 $ $ 25,999,508 $ 23,501,460
61
CITY OF ATLANTIC BEACH, FLORIDA
HISTORICAL REVENUES AND EXPENSES
FOR THE YEARS ENDED SEPTEMBER 30, 2012 THROUGH SEPTEMBER 30, 2016
2012 2013 2014 2015 2016
Revenues
Operating Revenues:
Water:
Customer Charges $ 3,069,998 $ 3,006,787 $ 2,955,863 $ 2,992,677 $ 3,177,331
Miscellaneous Charges 48,815 52,996 54,852 62,286 62,477
Total Water 3,118,813 3,059,783 3,010,715 3,054,963 3,239,808
Sewer:
Customer Charges 5,015,358 5,109,868 4,938,510 4,934,151 5,045,673
Miscellaneous Charges 3,303 1,651 1,237 107 0
Total Sewer 5,018,661 5,111,519 4,939,747 4,934,258 5,045,673
Total Operating Revenues 8,137,474 8,171,302 7,950,462 7,989,221 8,285,481
Nonoperating Revenues:
Investment Income (Loss):
Water 197,492 (115,023) 186,681 (7,718) 58,092
Sewer (21,010) 18,426 (43,954) (4,257) 38,929
Total Nonoperating Revenues 176,482 (96,597) 142,727 (11,975) 97,021
Total Revenues 8,313,956 8,074,705 8,093,189 7,977,246 8,382,502
Expenses
Operating Expenses:
Water 1,303,708 1,228,763 1,287,783 1,442,578 1,379,495
Sewer 2,493,500 2,005,653 2,170,495 2,055,780 2,064,614
Total Operating Expenses 3,797,208 3,234,416 3,458,278 3,498,358 3,444,109
Administrative, Nondivisional
and Other:
Water 518,506 521,600 530,715 563,356 561,069
Sewer 696,922 674,514 677,464 734,839 725,248
Total Administrative, Non-
divisional and Other 1,215,428 1,196,114 1,208,179 1,298,195 1,286,317
(Total Expenses) (5,012,636) (4,430,530) (4,666,457) (4,796,553) (4,730,426)
Net Revenues Available for
Debt Service 3,301,320 3,644,175 3,426,732 3,180,693 3,652,076
Nonoperating Income (Expense)
Interest Expense (726,058) (766,111) (896,571) (556,635) (481,693)
Loan Amortization (25,712) (12,787) (162,552) (98,507) (93,910)
Total Nonoperating Income
(Expense) (751,770) (778,898) (1,059,123) (655,142) (575,603)
Net Income Before Depreciation
and Operating Transfers $ 2,549,550 $ 2,865,277 $ 2,367,609 $ 2,525,551 $ 3,076,473
62
CITY OF ATLANTIC BEACH, FLORIDA
SCHEDULES OF NET REVENUES IN ACCORDANCE
WITH BOND RESOLUTIONS
ENTERPRISE FUNDS (WATER AND SEWER)
FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND SEPTEMBER 30, 2015
2016 2015
Gross Revenues
Utility $ 8,246,818 $ 7,955,290
Connection Charges 38,664 33,932
Interest 97,020 (11,977)
Total Gross Revenues 8,382,502 7,977,245
Operating Expenses
Personal Services 2,074,762 1,968,047
Contractual Services 552,627 638,961
Supplies 307,175 388,737
Repairs and Maintenance 121,248 120,049
Utilities 360,845 372,361
Intergovernmental Charges 1,113,777 1,113,777
Other Expenses 199,992 194,619
(Total Operating Expenses) (4,730,426) (4,796,551)
Total Net Revenues in Accordance with Bond Resolutions $ 3,652,076 $ 3,180,694
Total Debt Service $ 2,104,658 $ 768,739 *
Debt Service Coverage Ratio 173.52% 413.75%
Required Debt Service Coverage Ratio 110.00% 110.00%
* The 2014 Series Refunding Bonds' first principal payment was not due until October 1, 2015.
63
CITY OF ATLANTIC BEACH, FLORIDA
OTHER BOND COVENANT DISCLOSURES
FOR THE YEARS ENDED SEPTEMBER 30, 2012 THROUGH SEPTEMBER 30, 2016
Utility Service Tax Collections
(Last Five Years)
Year Electricity Communications Gas Fuel Oil Total
2012 $ 452,183 $ 567,909 $ 23,187 $ 14 $ 1,043,293
2013 459,672 576,839 20,849 17 1,057,377
2014 473,097 522,654 16,911 29 1,012,691
2015 476,997 526,996 15,555 7 1,019,555
2016 483,516 500,295 17,881 6 1,001,698
Ad Valorem Tax Collections
(Last Five Years)
Year Total
2012 $ 3,961,395
2013 3,843,755
2014 3,908,365
2015 4,113,476
2016 4,482,739
64
OTHER STATISTICAL INFORMATION
CITY OF ATLANTIC BEACH, FLORIDA
MAJOR UTILITY CUSTOMERS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
(UNAUDITED)
Annual
Billings
Fleet Landing (Retirement Community) $ 382,806
Navy (Federal Government) 315,648
John Creek Estate (Mobile Home Park) 128,853
PBH Mayport LLC 123,396
Oaks of Atlantic Beach (Mobile Home Park) 123,611
Arium Atlantic Beach (Apartment Complex) 116,908
City of Atlantic Beach, Florida 111,115
Hanna Park (Regional Park) 108,730
Avesta Homes (Apartment Complex) 83,150
One Ocean Resort (Hotel) 81,635
Total $ 1,575,852
65
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
CITY OF ATLANTIC BEACH, FLORIDA
SCHEDULE OF SOURCE AND EXPENDITURE OF THE CITY GRANT FUNDS
PER ORDINANCE CODE CHAPTER 118.301(e)
FOR FISCAL YEAR 2015-2016
City of Jacksonville Public Service Grants Received as a
Subgrant Recipient Per Interlocal Agreement
Source of City Funds
Fiscal Year
2015-2016
Grant No. 5629-57
Amount of Award (Per City of Jacksonville
Budget Ordinance) $ 676,549 (A)
Actual Funds Received from City of
Jacksonville in Last Audit Period 0
Actual Funds Received this Period (335,318)
Amount Earned but Not Received this Period (102,722) (B)
Unspent Award Amount $ 238,509
Expenditure of City Funds
(A) City Fiscal Year 2015-2016 Grant #5629-76 - includes carry-over of $1,449 from 2014-2015 Grant.
(B) Includes receivable at September 30, 2016 in the amount of $64,793, received in December of 2016
and $37,929 of retainage payable, which has not yet been requested for reimbursement.
Actual
10/1/2015 Remaining
Project / Federal Grant Number Budgeted 9/30/2016 Balance
Area Neighborhood Infrastructure Improvements
# 005525 / B14UC120017 $ 676,549 $ 438,040 $ 238,509
Total $ 676,549 $ 438,040 $ 238,509
66
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
City of Atlantic Beach
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, 2016, and the related
notes to the financial statements, which collectively comprise the City’s basic financial statements, and
have issued our report thereon dated August 8, 2017.
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 correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the 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 reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control that might
be material weaknesses or, significant deficiencies. We consider the following deficiency in internal
control to be a material weakness:
67
Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
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 reporting 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 reporting process. In addition, the finance department should perform variance analysis
throughout the year over major balance sheet and income statement accounts in order to identify and correct
any errors in a timely manner.
FY 2016 Update―During the 2016 audit we noted improvements in the accrual and reversal of routine
balance sheet accounts; however, significant journal entries relating to donated infrastructure, capital
outlay, and payroll clearing accounts were needed. We recommend that the City’s finance department
continues to improve their process for closing out the City’s books.
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 reported
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
control or on compliance. This report is an integral part of an audit performed 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.
August 8, 2017
Gainesville, Florida
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INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
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, 2016, 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 performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides a reasonable basis
for our opinion. Our examination does not provide a legal determination 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, 2016.
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 parties.
August 8, 2017
Gainesville, Florida
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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, 2016, and have issued our report thereon dated August 8, 2017.
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; and Chapter 10.550, Rules of the Auditor General.
Other Reports and Schedule
We have issued our Independent Auditors’ Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed 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 10.550, Rules of the Auditor General. Disclosures in those reports and schedule,
which are dated August 8, 2017, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
report. Corrective actions have not been taken to address the prior year audit finding 15-01.
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
Sections 10.554(1)(i)5.(a) and 10.556(7), Rules of the Auditor General, require that we apply appropriate
procedures and report the results of our determination as to whether or not the City has met one or more of
the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s)
met. In connection with our audit, we determined that the City did not meet any of the conditions described
in Section 218.503(1), Florida Statutes.
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Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
Atlantic Beach, Florida
MANAGEMENT LETTER
(Continued)
Financial Condition (Concluded)
Pursuant to Sections 10.554(1)(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
Sections 10.554(1)(i)5.(b.) and 10.556(7), Rules of the Auditor General, require that we apply appropriate
procedures and report the results of our determination as to whether the annual financial report for the City
for the fiscal year ended September 30, 2016, filed with the Florida Department of Financial Services pursuant
to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal
year ended September 30, 2016. 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
information 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)2., Rules of the Auditor General, requires that we address in the management letter any
recommendations to improve financial management. In connection with our audit, we have the following
recommendations:
16-1 – Payroll Clearing Fund
Condition―During the audit it was noted that the payroll clearing fund was not properly cleared as of
September 30, 2016. Currently, the clearing account has a cash balance and offsetting liability of
approximately $60,000.
Recommendation―We recommend that management review this fund to determine the reason for the balance.
We also recommend that management periodically review the fund during each fiscal year in order to reduce
the likelihood of an uncleared balance sheet.
16-2 – Donated Infrastructure
Condition―During the review of capital assets it was noted that donated infrastructure that was accepted by
the City in the amount of $1,900,496 had not been recorded in the City’s fixed asset records. These amounts
have since been recorded into the fixed asset records.
Recommendation―We recommend that the management implement procedures in order to properly identify
donated infrastructure in the correct accounting period.
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Honorable Mayor, City Commissioners, and
City Manager
City of Atlantic Beach
Atlantic Beach, Florida
MANAGEMENT LETTER
(Concluded)
Other Matters (Concluded)
16-3 – Timeliness of the Financial Report
Condition―Florida Statutes 218.39 requires that municipalities have an annual financial audit of its accounts
and records completed within nine months after the end of its fiscal year. Due to delays as a result of not all
the necessary information being provided in a timely manner, the audit was not completed until the end of
July 2017.
Recommendation―We recommend that management evaluate and implement procedures to expedite the
closing and finalizing of the City’s accounting records.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions
of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an
effect on the financial statements that is less than material but which warrants the attention of those charged
with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal
and other granting agencies, and applicable management, and is not intended to be and should not be used by
anyone other than these specified parties.
August 8, 2017
Gainesville, Florida
72
August8,2017
Pu rv is, Gray and Company, LLP
P.O. Box 141270
Gainesville, FL 32614
RE: Management Letter dated August 8, 2017
Internal Control Over Financial Reporting
15-1-Financial Close and Reporting
City of Atlantic Beach
800 Sem in ole Road
Atlantic Beach, Florida 32233 -5445
T e lephone (904) 24 7 -5800
Fax (904) 247 -5819
http://www .coab .us
Condition -At the commencement of final fieldwork it was noted that th e pr elimina r y wor k ing tria l balan ce did not
reflect all of the requ ired clos ing entries , inclu ding bu t not limite d to the accrual and reversal of numerou s balance
sheet accounts. It was also noted that a large prior yea r accrual was improperly booked to expense in fiscal year
2015 . A deficiency in the finan c ial reporting and close process could result in numerou s errors and i ncreases the
risk of undetected misstatements .
FY 2016 Update -During the 2016 audit we noted improvements in the accrual and reversal of routine balance
s heet accounts ; however, significant journal entries relating to donated infra structure , capital outlay, and
payroll clearing accounts were needed. We recommend that the City's finance department Continues to im prove
their pro cess for closing out the City's books .
Management Response to Comment 15-1-Financial Close and Reporting
The City ha s taken steps to maintain continuity in the department and make sign ificant reporting impro vements
mov ing forward .
Other Matters
16-1-Payroll Clearing Fund
Condition -During the audit it was noted that the payroll clearing fund was not prope rl y cleared as of September
30 , 2016. Currently, th e clearing acco unt has a cash balance and offsetting liab ili ty of approximate ly $60 ,000 .
Recommendation-We recommend that management re view this fund to determine the re ason for the balance .
We also re co mmend that management periodically review the fund durin g eac h fi scal year in order to redu ce t he
likelihood of an uncleared balan ce sheet.
Management Response to Comment 16-1 -Payroll Clearing Fund
The City w ill re v iew and re co nci le the balance in question . Additionally, the fund w ill be reviewed on a monthly
basis and uncleared balances will be reconciled each month .
16-2-Donated Infrastructure
Condition -During the re vi ew of capital assets it was noted tha t donated infrast ructure that was accepted by the
City in the amount of $1,900 ,496 had not been re co rde d in th e City's fixed asset record s . These amounts have
since been recorded into the fi xed asset re cords.
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2
Recommendation -We recommend that the management implement procedures in order to properly identity
donated infrastructure in the correct accounting period.
Management Response to Comment 16-2 -Donated Infrastructure
The City will adopt a new fixed asset reconciliation procedure to be completed on a monthly bas is .
16-3-Timeliness of the Financial Report
Condition -Florida Statutes 218 .39 requires that municipalities have an annual financial audit of its accounts and
records completed within nine months after the end of its fiscal year. Due to delays as a result of not all the
necessary information being provided in a timely manner, the audit was not completed until the end of July 2017 .
Recommendation-We recommend that management evaluate and implement procedures to ex pedite the closing
and finalizing of the City's accounting records .
Management Response to Comment 16-3-Timeliness of Financial Report
The City has scheduled earlier closeouts for FY17 in an effort to alleviate this problem moving forward.
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