HomeMy WebLinkAboutCAFR 9-30-14COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF CAPE CANAVERAL, FLORIDA
FISCAL YEAR ENDED SEPTEMBER 30, 2014
Prepared By:
City of Cape Canaveral Finance Department
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CITY OF CAPE CANAVERAL, FLORIDA
TABLE OF CONTENTS
SEPTEMBER 30, 2014
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Page Number(s)
INTRODUCTORY SECTION List of Principal Officials 3
Letter of Transmittal 7 - 14
Organizational Chart 17Certificate of Achievement for Excellence in Financial Reporting 19
FINANCIAL SECTION Independent Auditors’ Report 25 – 26 Management’s Discussion and Analysis 29 – 40 Basic Financial Statements Government-wide Financial Statements:Statement of Net Position 42Statement of Activities 43Fund Financial Statements: Balance Sheet – Governmental Funds 44Reconciliation of the Balance Sheet of the Governmental Funds to theStatement of Net Position 45Statement of Revenues, Expenditures, and Changes in Fund Balances –Governmental Funds 46Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 47Statement of Revenues, Expenditures, and Changes in Fund Balance –Budget to Actual-General Fund 48Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget to Actual-Cape Canaveral Community Redevelopment Agency
Fund 49
Statement of Net Position – Proprietary Funds 50
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds 51
Statement of Cash Flows – Proprietary Funds 52Notes to Financial Statements: 54Note 1 – Summary of Significant Accounting Policies 54 - 59Note 2 – Reconciliation of Government-Wide and Fund Financial Statements59Note 3 – Property Tax Calendar 60Note 4 – Deposits and Investments 61 - 62Note 5 – Receivables 63Note 6 – Interfund Transfers 63 - 64Note 7 – Capital Assets 65 - 66Note 8 – Long-term Debt 66 - 68Note 9 – Employees’ Retirement Plans 69Note 10 – Other Post-Employment Benefits (OPEB)69 - 72Note 11 – Legal Matters 72Note 12 – Commitments and Contingencies 72Note 13 – Encumbrances 73Note 14 – Risk Management 73Note 15 – Restatement of Net Position 73
CITY OF CAPE CANAVERAL, FLORIDA
TABLE OF CONTENTS
SEPTEMBER 30, 2013
(Continued)
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Page
Number(s)
Required Supplementary Information
Schedule of Funding Progress – Other Post-Employment Benefits 76
Combining and Individual Fund Statements and Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to
Actual-Capital Construction Fund 80
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to
Actual-Enterprise Capital Fund 81
Combining Balance Sheet - Nonmajor Governmental Funds 82
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds 83
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to
Actual 84 - 86
STATISTICAL SECTION
Table 1 – Net Position by Component 91
Table 2 – Changes in Net Position 92 – 93
Table 3 – Fund Balances of Governmental Funds 94 – 95
Table 4 – Changes in Fund Balances of Governmental Funds 96 – 97
Table 5 – Tax Revenues by Source of Governmental Funds 98
Table 6 – Assessed Value and Actual Value of Taxable Property 99
Table 7 – Property Tax Rates – Direct and Overlapping Governments 100
Table 8 – Principal Property Taxpayers (Major Taxpayers) 101
Table 9 – Property Tax Levies and Collections 102
Table 10 – Ratios of Outstanding Debt by Type 103
Table 11 – Ratio of Net General Obligation Bonded Debt to Assessed Value and Net
Bonded Debt Per Capita 104
Table 12 – Pledged-Revenue Coverage – Wastewater System 105
Table 13 – Demographic Statistics 106
Table 14 – Principal Employers 107
Table 15 – Full-Time Equivalent City Government Employees by Function/ Program 108
Table 16 – Operating Indicators by Function/Program 109
Table 17 – Capital Asset Statistics by Function/Program 110
Table 18 – Water/ Wastewater Distribution and Consumption – Unaudited 111
Table 19 – Water and Wastewater Rates – Unaudited 112
Table 20 – Construction, Property Value and Bank deposits – Unaudited 113
Table 21 – Miscellaneous Statistics – Unaudited 114
OTHER REPORTS
Independent Auditors’ Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 117 – 118
Independent Auditors’ Management Letter Required by Chapter 10.550, Rules of
the State of Florida Office of the Auditor General 119 – 120
Independent Accountants’ Examination Report 121
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Introductory Section
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City of Cape Canaveral, Florida
Comprehensive Annual Financial Report
Fiscal year ended September 30, 2014
City Council
Honorable Rocky Randels, Mayor
Buzz Petsos, Mayor Pro Tem
John Bond
Robert Hoog
Betty Walsh
City Manager
David Greene
City Attorney Finance Director
Anthony Garganese John DeLeo
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Letter of Transmittal
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The Honorable Mayor, et al
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PROFILE OF THE GOVERNMENT
The City of Cape Canaveral was incorporated as a municipal corporation in May 1963. The City is
located on the Atlantic Ocean approximately midpoint between Miami and Jacksonville and is slightly
over 50 miles east of Orlando. This 1.9 square-mile beach and coastal community serves a population of
10,022 and is bounded on the west by the Banana River, on the north by Port Canaveral, on the east by
the Atlantic Ocean and on the south by the City of Cocoa Beach.
The City is governed by an elected mayor, mayor pro tem and three council members. The Council is
responsible, among other things, for passing ordinances, adopting the budget, approval of property tax
levies, appointing committees and hiring of the City Manager. The City Manager is responsible for
carrying out the policies and ordinances of the Council, overseeing the day-to-day operations of the City,
drafting the annual budget and appointing Directors of the various City departments.
The City provides a full range of services which include police, contracted with the Brevard County
Sheriff’s Office, and fire/EMS protection contracted with the Cape Canaveral Volunteer Fire Department,
Inc. The City provides recreational activities, cultural events, solid waste, wastewater, reclaimed water,
stormwater, community development and maintenance of streets and infrastructure.
The annual budget, adopted prior to October 1st, serves as the foundation for the City’s financial planning
and control. The budget is approved by fund. Amendments to funds and transfers between departments
require Council approval. Budget to actual comparisons are provided in this Report for each
governmental fund for which an appropriated annual budget has been adopted.
ECONOMIC CONDITION AND OUTLOOK
The City’s economy is anchored by Port Canaveral, Canaveral Air Force Station, Patrick Air Force Base
and Kennedy Space Center, along with ancillary defense and aerospace contractors. The City's proximity
to Orlando, coupled with its riverfront parks and beaches, also help spur tourism activity. Income levels
are average. Cape Canaveral unemployment during Fiscal Year 2014 averaged 6.4% and is currently at
6.1%, (according to Homefacts.com). The national unemployment rate dropped to 5.9% in September
2014 (reference the Bureau of Labor Statistics). Due to accelerated hiring, Cape Canaveral, as well as
Brevard County, will continue to show improvement due to increased industry growth at the Kennedy
Space Center and Canaveral Air Force Station; increased Aerospace and High Technological
Manufacturing Companies such as Embraer S.A. and Northrup Grumman’s expansion at the Melbourne
International Airport; expansion of Port Canaveral Cruise Industry; and numerous service-oriented
companies countywide. Housing indicators have risen according to data provided by the Economic
Development Commission of the Space Coast, Winter-Spring 2015 Economic Review. The area's median
single-family home price has risen by 8.1% over the previous year and is expected to rise again in 2015.
There are still pockets of high foreclosure rates within the county, but the City of Cape Canaveral with the
aforementioned proximity to core businesses, military installations and the second busiest cruise ship port
in the world continues to fare better than most municipalities. The above factors will likely lead to
continued moderate increase in assessed property valuation with increased revenues projected for utility
taxes, franchise fees, state shared revenues, building permits, impact fees and utility revenues.
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MAJOR INITIATIVES
The City continues implementation of the community’s strategic vision which will strengthen Cape
Canaveral economically by creating a strong high quality, high service level community in which to live,
work and play.
In September 2014, the City completed the construction of a new Fire Station. This state of the art facility
will provide Cape Canaveral and the surrounding community with increased emergency support and
project increased confidence in the community as a whole.
The Capital Projects completed and/or currently being undertaken by the Public Works Services
Department are numerous and provide for much needed improvements to both of the City’s Wastewater
and Stormwater systems. These Capital Projects are funded through a number of sources including
Enterprise Capital Funds (Stormwater and Wastewater) and an approved State Revolving Fund (SRF)
loan from the Florida Department of Environmental Protection (FDEP).
Refurbishment of the Wastewater Treatment Plant (WWTP) Main Building was initiated in May 2014
and included the construction of new restrooms, storage areas, a training room, kitchen facilities, a second
floor Operations Control Room, a bleach system building and hardening of the exterior of the Building to
code requirements. The renovation was completed in December 2014. The Main Building was
constructed in 1966.
An Emergency Generator was installed in fall 2014 at Lift Station #4 on Coquina Drive in the Harbor
Heights neighborhood. This Lift Station is the 5th in the City to be modified to include an emergency
generator for use during long power outages.
The City maintained an active stormwater system maintenance program. Activities included the
replacement of older style stormwater inlets with new Type “C” inlets. These newer inlets require less
maintenance, are not damaged as easily by vehicular traffic, prohibit larger debris from entering the
stormwater system and provide improved stormwater flow. Exfiltration piping was also installed at two
locations in 2014 where significant street flooding occurred after heavy rainfall events. Street sweeping of
all curbed streets also continues on a monthly basis.
Brief descriptions of projects to be completed in 2015 are as follows:
The Holman Road Sanitary Sewer Improvements Project was developed to alleviate sewer back-up in a
residence along Holman Road and to increase sewer capacity. The sanitary sewer line located beneath
Holman Road will be replaced with a 12-inch diameter pipe. This Work is the first phase of a three-
phased Project to replace the entire sanitary sewer line to Lift Station #2 located along Center Street.
Engineering drawings were completed in summer 2014 and construction will begin in summer 2015.
The City’s Sludge Belt Press is over 20 years old and will be refurbished. Its purpose is to press solids
from the wastewater process and direct the solids into dumpsters for transport and disposal at the Brevard
County Landfill. The Project also includes expansion of the Belt Press Building and purchase/installation
of an additional Sludge Belt Press to provide redundancy in the treatment process. Engineering drawings
will be completed in winter 2015 and construction will begin in winter 2015.
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The Reclaimed Water Tank Project includes the construction of a new 2.5 million gallon Reclaimed
Water Tank at the WWTP. The Tank will allow the City to eliminate discharges of treated wastewater to
the Banana River and provide additional reclaimed water to residents, Port Canaveral and the City of
Cocoa Beach. Engineering drawings will be completed in winter 2015 and construction will begin in
spring 2015.
The Oxidation Ditch Improvements Project includes the complete redesign of the Oxidation Ditch system
at the WWTP. There is currently no redundancy with the Oxidation Ditch design. The redesign will
provide a second Oxidation Ditch process for use in emergency situations and will allow for improved
maintenance. The Work will include refurbishment of all pumps and valves for a more efficient system
and installing a cover over the existing Oxidation Ditch to limit offsite spray. Engineering drawings were
completed in fall 2014 and construction will begin in fall 2015.
The Canaveral City Park Exfiltration Project includes the construction of exfiltration piping beneath Canaveral City Park. The piping will allow for the exfiltration of stormwater from area streets into the
surficial aquifer. This Project will eliminate a substantial amount of stormwater discharge to the Banana River. Engineering drawings will be completed in winter 2015 and construction will begin in fall 2015.
The stormwater pipe beneath the northern side of West Central Boulevard will be repaired. This pipe is composed of corrugated iron and has been in service for an unknown number of years. The pipe will be
lined with a concrete material especially designed for stormwater pipes. Construction drawings will be completed in winter 2015 and construction will begin in spring 2015.
The Central Ditch south of West Central Boulevard will be dredged for a length of approximately 900 feet. The channel contains approximately three feet of muck (organic debris) which is a continuing source
of pollutants to the water column in the Central Ditch. Engineering drawings will be completed in fall
2015 and dredging will begin in fall 2015.
Construction plans will be prepared for the North Atlantic Avenue Streetscape Project. Grant funds in the
amount of $1.9 million were received through the Space Coast Transportation Planning Organization
(SCTPO) and the Florida Department of Transportation (FDOT) and $860,000 in funding was received
from Brevard County Transportation Impact Fees. This Project includes the construction of a new pedway
and sidewalk, lighting and stormwater improvements, vegetative plantings and numerous decorative
features. Engineering drawings will be completed in winter 2015 and construction will begin in spring
2015.
The Force Main #3 Replacement Project includes the replacement of the oldest force main in the City
which was installed over 25 years ago and has experienced numerous breaks over the past few years. The
new force main will connect Lift Station #3 to the force main located along Thurm Boulevard.
Engineering drawings will be completed in winter 2015 and construction will begin in summer 2015.
The Grit/Bar Screen Replacement Project includes the replacement of the headworks at the WWTP.
Excessive amounts of larger debris are currently passing through the existing headworks and into the
wastewater treatment train thus reducing efficiency. Installation will begin in summer 2015.
The Lift Station #6 (Imperial Drive) and #7 (West Central Boulevard) Upgrades include improvements to
these two Lift Stations due to continued growth along the northern State Road A1A corridor. Lift Station
#7 will also be relocated to City-owned property in Manatee Sanctuary Park. Engineering drawings will
be completed in winter 2015 and construction will begin in winter 2015.
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The development of a new Stormwater Master Plan is required since the original Plan is over 14 years
old. The new Plan will include recommendations for the completion of stormwater upgrades to improve
water quality in stormwater runoff. The Plan will be completed in winter 2015.
The Central Ditch north of the Oak Manor Trailer Park will be dredged or cleaned of debris and surficial
muck (organic debris) deposits. This portion of the Central Ditch contains much less muck than the
southern portion of the Central Ditch. Engineering drawings will be completed in fall 2015 and dredging
will begin in fall 2015.
Consistent with direction from the 2009 Community Visioning, the City adopted Ordinance No. 11-2012
creating the A1A Economic Opportunity Overlay District (EOOD) for the north A1A commercial
corridor. The purpose of the EOOD is to create a strong sense of identity for the City’s northern entrance
area, enhance opportunities for economic development and job creation, attract services desired by the
citizens and allow for additional uses such as a mixed use, Town Center type development. To this end,
the EOOD establishes architectural design standards, increases building heights, revises hotel
requirements, increases landscaping requirements and allows for additional uses. Similarly, an upcoming
expansion of the A1A Economic Opportunity Overlay District will address the unique needs of
redevelopment of the southern portion of our City.
In 2012, the City Council created Cape Canaveral’s Community Redevelopment Agency (CRA). A CRA
is a tool to fund and plan for investment and redevelopment in a specific area. Staff is working to develop
Community Redevelopment Area (CRA) incentive programs. There will ultimately be many incentives
offered/available to the property owners including, but not limited to:
Improvement and Beautification Programs such as Commercial Improvement Grants and
Multi-Family Residential or Residential Neighborhood Improvement Grants, matching
Façade Grant, Exterior and/or Interior improvements, Paint Voucher Grant.
Rehabilitation, Redevelopment and Repurposing of Existing Buildings such as repurposing
existing building(s) including commercial projects that are hospitality, entertainment,
industrial, office and technology based businesses, retail or a jobs producing entity.
Rehabilitation Matching Revitalization Grants such as Commercial Life Safety Compliance
Grants and Site Preparation to assist with demolition/removal of obsolete structures.
Incentive Fund for Opportunity Site Grant Programs and Events and Marketing Grants.
Waivers and Reimbursements program for City building permit fees and plan checking fees
deferral plan (Program pays the fees up to $1000 - not a waiver of fees).
Impact Fee Assistance/Deferment Program.
A New City Hall has been part of the community conversation since the mid 1990’s. On July 16, 2013
Task Order No. 1 was approved by City Council for architectural and engineering services related to the
design of a new City Hall. Some of the key tasks contained in the project scope of work are: Site Plan
Development, Final Construction Drawings and Documents, Permitting, Road Closure Design, Meetings
and Public Involvement, Bid Document Preparation and Bidding/Negotiation Services and Geotechnical
Engineering. The proposal currently includes a two story, 18,500 square foot City Hall at the site of the
former Community & Economic Development Department building at 7510 N. Atlantic Ave. The old
building was demolished in January 2015 and the site has been re-addressed to 100 Polk Ave. This site
was selected as the location for the New City Hall because it is centrally located within the City limits, it
is adjacent to many other City facilities and it will accommodate the required parking and stormwater
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and Economic Development Department is currently temporarily located at 110 Polk Ave., which is
adjacent to the New City Hall site. Once construction of the New City Hall is complete, the building at
110 Polk Ave. will be demolished and the lot will be incorporated into the overall City Hall site plan.
Branding. In response to RFP #2014-01, the City distributed twenty-one RFP packets to potential bidders
for the purpose of developing a City Branding Initiative to increase the overall awareness/positive
perception of the City, by engaging residents and businesses to market the City internally and externally
as a vibrant, attractive City in which to live, work, play, learn, invest and visit.
On June 17, 2014, the Business and Economic Development Board met and ranked the top three
responses from a pool of five received. On June 30, 2014, the RFP Review Committee interviewed the
top three Finalists and selected Prismatic as the top firm due to its intimate knowledge of Cape Canaveral,
its unique approach to the City’s branding campaign and the quality of relevant experience. City Council
awarded RFP #2014-01, Branding Contract with Prismatic of Orlando. The six-month project began on
September 2nd. To date:
• Prismatic has developed its strategy for public outreach and requested City participation
to reach the largest audience possible for community input.
• Target audiences for public outreach include the business community, residents and
tourists.
• Leisure Services offers programming to a large variety of citizens. Leisure Services
Director is assisting with outreach to a diverse sample of citizens through its activities,
classes and groups.
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• A two-hour community workshop and possible outdoor guerilla marketing stunt are being
developed to excite and engage Citizens.
• Selected upcoming community events will serve as outreach opportunities, with details to
be determined.
• Prismatic and City to have weekly update calls to establish/maintain community outreach
timeline.
Imperial Boulevard Easements. In support of the Cape Canaveral Vision Statement and as an economic
development initiative, Staff worked with property owners to secure new Public Utility Easements
supporting the infrastructure needs of the undeveloped commercial properties on the east side of
Astronaut Boulevard/A1A at the north end of the City. Initially, the new Easements will be used to
provide sanitary sewer and an 8-inch water line to all of the parcels served. This initiative is related to the
scheduled expansion and enhancement of Lift Station #6 on Imperial Boulevard.
Manatee Sanctuary Park experienced an amazing uplift with paving of the parking lot and the half mile
Pedway. Improvements to the Park include a beautifully landscaped island as well as decorative solar
lighting. As the City’s flagship riverfront park, it has become an even more proud asset.
The old City Hall could be used as a City Welcome Center or to expand Leisure Services activities such
as a senior center, youth center, multi-generational center or community center.
The City’s computer network acquired the Microsoft Cloud which increased sustainability in the event of
a natural disaster or unexpected power outages. Additionally, every City employee was provided an email
account which broadened access and increased efficiency throughout the City.
LONG TERM FINANCIAL PLANNING
It has been policy to plan financially towards future Capital Projects. With this is mind, annually the City
adopts a Five Year Capital Improvement Plan and has budgeted reserves to provide funding for
acquisition of necessary Fire Rescue Capital Equipment and Vehicles, Public Safety, new parks and
construction of a new City Hall. Although these reserves are not restricted in the legal sense, the intent is
to continue to increase these funds with the goal of reducing future financial needs.
The City’s General Fund obtained a ten year Bank Loan in February 2014 for $5,500,000, at a low
interest rate of 1.99% with an average loan payment of $613,385 annually, which commenced February
2015. This loan included financing for the cost of a City Hall, Fire Station, and Refurbishment of the
Wastewater Treatment Plant and related Capital Improvements.
The City’s Wastewater enterprise fund has long term debt of $802,051. As the City continues to pay on
its existing State Revolving Fund Loans, which will be paid in full by October 2016, this will reduce the
previous financial obligation of $649,383 annually. Moving forward, the City has already secured two
new State Revolving Fund Loans for Wastewater Treatment & Reuse Facilities/Stormwater Management
Facilities totaling $7,031,641 at a low 1.69% interest rate. Repayment begins June 2017, with annual
Loan Payments of $424,552 (a reduction of $224,831 in debt service annually).
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Organizational Chart
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Citizens of Cape CanaveralCity CouncilRocky Randels, Mayor; Buzz Petsos, Mayor Pro-Tem; John Bond, Council Member; Bob Hoog, Council Member; Betty Walsh, Council MemberCity ManagerDavid L. GreeneCity Attorney’s OfficeReview BoardsAdministrative ServicesAngela Apperson, Dir.City Clerk’s OfficeLegislative ActivitiesPublic CommunicationsRecords ManagementInformation TechnologyFinancial ServicesJohn DeLeo, Dir.Financial ReportingBudgetPurchasingPayrollAccounts PayableAccounts ReceivableBuilding/Code EnforcementVacantBldg. PermitsBldg. InspectionsBusiness Tax ReceiptsLicensingCode EnforcementPlanning/ZoningDavid Dickey, Dir.Planning/Zoning ActivitiesComprehensive PlanAdvisory BoardsLeisure ServicesGustavo Vergara, Dir.Recreational ActivitiesCultural ActivitiesSpecial EventsParks/Activity FieldsPublic Works ServicesJeff Ratliff, Dir.Wastewater Systems Operations June Clark,SupervisorPlant Operations/Maint.Collection System Operations/Maint.Reclaimed Water SystemLaboratory OperationsRegulatory ComplianceInfrastructure MaintenanceKay McKee,SupervisorFacilities Maint.Streets/Rights-of-WayStormwater/Drainage Maint.Fire/Rescue ServicesDave Sargeant, ChiefAdministrationEmergency ServicesPrevention, Education &Emergency ManagementProtective ServicesPaul Ring, MajorAdministrationSupport ServicesCommunity ServicesLaw Enforcement OpsSchool Crossing GuardsSolid Waste Collection ServicesWaste Pro, Inc.Solid WasteRecyclingElectronic WasteLibrary ServicesBrevard CountyAdult ServicesChildren ServicesReference ServicesPublic Works Services Deputy DirectorLonnie DunnCommunity& Economic DevelopmentTodd Morley, Dir.Economic DevelopmentRedevelopmentGrant Acquisition Human Resources Jane Ross, OfficerEmployee Relations/Recruitment Volunteer/Intern Coordination Labor RelationsRisk ManagementTraining201314- 17 -
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Financial Section
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Independent Auditors’ Report
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor, City Council, and City Manager, City of Cape Canaveral, 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 City of Cape Canaveral, Florida (the City), as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
The City’s 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 entity’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 entity’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.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2014, and the respective changes in financial position and cash flows, where applicable, thereof, and the respective budgetary comparison for the General and Cape Canaveral CRA Funds for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
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Other Matters
Change in Accounting Principle
As discussed in Note 1(r) and Note 15 to the financial statements, in 2014, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported As Assets and Liabilities. The effects of this standard have also been applied to the financial statements as of September 30, 2013. See Note 15 for the effect of GASB 65 on beginning net position. Our opinion is not modified with respect to this matter.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted 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 introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and budgetary comparison schedules 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 information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 17, 2015 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Daytona Beach, Florida March 17, 2015
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Management’s Discussion
and Analysis
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City of Cape Canaveral, Florida
Management’s Discussion and Analysis
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As management of the City of Cape Canaveral, we provide readers of the City’s financial statements this overview
and analysis of the City’s financial activities for the fiscal year ended September 30, 2014. Readers are encouraged
to consider the information presented in conjunction with additional information furnished in the letter of transmittal,
which can be found on pages 7 - 14 of this report.
Financial Highlights
• The assets of the City exceeded its liabilities at the close of the most recent year by $40.1 million (net
position). Of this amount, $11.1 million (unrestricted net position) may be used to meet the City’s
ongoing obligations.
• The City’s total net position increased by $640,628. This is the result of management’s intense efforts to
always pursue the most cost-effective measures while protecting the City’s resources.
• At the close of the fiscal year, the City’s governmental funds reported combined ending fund balances of
$9.77 million, an increase of $2.6 million in comparison to the prior year, due primarily to issuance of
long-term debt offset by the construction of the New Fire Station and the complete Refurbishment of the
Wastewater Treatment Plant in Fiscal Year 2014.
• At the close of the fiscal year, fund balance for the General Fund was $9,091,797. Of this amount
$124,668 relates to inventory and prepaids as well as long term advances and is therefore
nonspendable. The remaining fund balance includes: restricted ($430,314), committed ($5,024,941)
assigned ($485,543) and unassigned ($3,026,331) balances. The total assigned fund balance category
is assigned for balancing the 2015 budget. Within the committed fund balance category, the largest
piece is $3,742,637 committed for the construction of a new City Hall. Unassigned funds are available to
fund on-going activities of the City’s various General Fund services and programs.
• The City’s total long-term liabilities increased $4.9 million. This was due primarily to issuance of the $5.5
Capital Improvement Revenue Note, offset by annual debt service payments on outstanding obligations
related to a State of Florida Department of Environmental Protection revolving loan for Wastewater
treatment improvements made in 1995 and 1996.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s financial statements. The City’s
basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains other supplementary information in
addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide
readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference
between the two reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the 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. (e.g., uncollected taxes and earned but unused
vacation leave).
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 30 -
Both of the government-wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business-type activities). The governmental
activities of the City include general government, public safety, physical environment, sanitation, economic
development, culture and recreation. The business-type activities of the City include Wastewater and Stormwater
operations. The government-wide financial statements can be found on pages 42-43 of this report.
Fund financial statements. A fund is a grouping of related accounts 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 divided into two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources,
as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful
in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand the
long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains nine individual governmental funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for
the General Fund, Cape Canaveral Community Redevelopment Agency Fund, Capital Construction Fund and
Enterprise Capital Fund, all of which are considered to be major funds. Financial data from the other five
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-
major governmental funds is provided in the form of combining statements presented in the supplementary
information section of this report.
The City adopts an annual appropriated budget for its governmental funds. Budgetary comparison statements for the
major and non-major funds have been provided to demonstrate compliance with the budget in this report.
The basic governmental fund financial statements can be found on pages 44-47 of this report.
Proprietary funds. The City maintains two proprietary (“Enterprise”) funds. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial statements. The City uses
enterprise funds to account for its Wastewater and Stormwater operations.
The statements for the proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information for the
Wastewater and Stormwater operations, which are considered to be major funds of the City. The basic proprietary
fund financial statements can be found on pages 50-52 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 funding of Other Post-Employment Benefits. Required supplementary information and the related footnotes can be found on page 76 of this report.
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 31 -
The combining statements referred to earlier in connection with non-major governmental funds are presented
immediately following the required supplementary information. Combining and individual fund statements can be
found on pages 80-86 of this report.
Government-wide Financial Analysis
As stated earlier, net position may serve over time as a useful indicator of a government’s financial position. In the
case of the City of Cape Canaveral, assets exceeded liabilities by $40.1 million at the close of the 2014 fiscal year.
By far the largest portion of the City’s net position, $27.31 million (68.1%) reflects its investment in capital assets
(e.g., land, buildings, machinery and equipment); less any related debt used to acquire those assets that is still
outstanding. This is a decrease from the previous year due to the impact of the 2014 Capital Improvement Revenue
Note offset by the construction of the New Fire Station and Initial Planning of the New City Hall; the refurbishment of
the Wastewater Treatment Plant Building; and the continued stormwater system maintenance program and the City’s
sanitary sewer improvements Project. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City’s investment in its capital assets
is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Cape Canaveral, Florida
Statement of Net Position
Governmental Activities Business-type Activities Total
2014 2013 2014 2013 2014 2013
Current and other assets 10,915,445$ 8,248,811$ 3,564,899$ 3,881,273$ 14,480,344$ 12,130,084$
Capital Assets (Net) 18,419,882 15,842,742 15,812,699 15,006,494 34,232,581 30,849,236
Total Assets 29,335,327 24,091,553 19,377,598 18,887,767 48,712,925 42,979,320
Current and other liabilities 1,838,578 1,076,800 882,790 161,228 2,721,368 1,238,028
Long-term Liabilities 5,060,938 173,791 841,388 2,105,719 5,902,326 2,279,510
Total Liabilities 6,899,516 1,250,591 1,724,178 2,266,947 8,623,694 3,517,538
Net Position:
Net Investment in
Capital Assets 12,919,882 15,842,742 14,389,471 12,986,307 27,309,353 28,829,049
Restricted 1,296,710 937,204 423,939 396,648 1,720,649 1,333,852
Unrestricted 8,219,219 6,060,996 2,840,010 3,237,865 11,059,229 9,298,861
Total Net Position 22,435,811$ 22,840,942$ 17,653,420$ 16,620,820$ 40,089,231$ 39,461,762$
A portion of the City’s net position, $1,720,649, or 4.3% of total net position, represents resources that are subject to
external restriction on how they may be used. The balance of unrestricted net position totaling $11,059,229 may be
used to meet the City’s ongoing obligations to citizens and creditors and to provide funding for various projects.
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 32 -
At September 30, 2014, the City is able to report positive balances in all three categories of net assets, both for the
City as a whole and for its separate governmental and business-type activities. The same situation held true for the
prior fiscal year.
The City experienced an overall decrease in net position for Governmental activities of $405,131. The increase for
business-type activities was $1,045,759.
Governmental Activities Business-type Activities Total
2014 2013 2014 2013 2014 2013
REVENUES
Program Revenues:
Charges for Services 1,601,192$ 1,612,877$ 4,149,422$ 3,940,736$ 5,750,614$ 5,553,613$
Operating Grants and Contributions 283,621 986 - - 283,621 986
Capital Grants and Contributions 293,678 103,554 - - 293,678 103,554
General Revenues:
Property Taxes 3,244,566 3,545,761 - - 3,244,566 3,545,761
Utility and Franchise Taxes 2,302,715 2,064,043 - - 2,302,715 2,064,043
Intergovernmental 794,366 733,430 - - 794,366 733,430
Investment Income 65,002 118,418 16,903 24,525 81,905 142,943
Miscellaneous 121,673 72,479 - - 121,673 72,479
Total Revenues 8,706,813 8,251,548 4,166,325 3,965,261 12,873,138 12,216,809
EXPENSES
General Government 1,196,010 1,176,016 - - 1,196,010 1,176,016
Public Safety 4,988,955 4,786,742 - - 4,988,955 4,786,742
Transportation 976,126 989,959 - - 976,126 989,959
Physical Environment 971,376 969,778 - - 971,376 969,778
Culture/Recreation 721,749 568,356 - - 721,749 568,356
Interest on long-term debt 47,124 - - - 47,124 -
Sew er - - 2,867,552 2,946,743 2,867,552 2,946,743
Stormw ater - - 463,618 427,634 463,618 427,634
Total Expenses 8,901,340 8,490,851 3,331,170 3,374,377 12,232,510 11,865,228
Excess (Deficiency) Before Transfers (194,527) (239,303) 835,155 590,884 640,628 351,581
Transfers (210,604) 125,000 210,604 (125,000) - -
Change in Net Position (405,131) (114,303) 1,045,759 465,884 640,628 351,581
Net Position - Beginning 22,840,942 22,955,245 16,607,661 16,154,936 39,448,603 39,110,181
Net Position - Ending 22,435,811$ 22,840,942$ 17,653,420$ 16,620,820$ 40,089,231$ 39,461,762$
City of Cape Canaveral, Florida
Changes in Net Position
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 33 -
Statement of Activities
Governmental activities:
The Changes in Net Position Table on page 32 reflects a governmental revenue increase of $455,265, an increase of
5.52% from the previous fiscal year. This increase reflects both program and general revenues. Governmental
program revenues increased $461,074 a 26.85% increase from 2013. This increase is primarily the result of an
increase in Operating Grants and Contributions ($283,621) and Capital Grants and Contributions ($293,678).
Charges for services
18%
Operating grants and
contributions
3%
Capital grants and
contributions
3%
Property tax
37%
Utility and Franchise
27%Intergovernmental
revenues
9%
Investment income
1%
Miscellaneous
2%
Other
9%
Revenues by Source -Governmental Activities
(does not include transfers)
The remaining change relates to general revenues. Significant factors include the following:
• Property taxes decreased $301,195 from 2013. The end of Calendar Year 2014 property values increased
by 8.1%.
• Investment income declined 45.11% from the prior year. This $53,416 decline resulted from significant
declines in cash balances invested (due to construction projects), as well as decreases in the rate of return
for these funds.
• Utility and Franchise Tax revenues increased $238,672 over the prior year. This increase of 11.6% was
the result of a full year’s benefit of the Public Service Tax on water consumption and overall utility usage.
• Intergovernmental income increased $60,936 over the revenue for 2013. This increase related to revenues
received from the county for the Community Redevelopment Agency and various State revenue sharing
sources.
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 34 -
Expenses for governmental activities increased slightly, 4.83% over 2013 amounts. The most significant increases
related to General Government ($19,994), Public Safety ($202,213), and Culture and Recreation ($153,393). There
was a small decrease in Transportation of $13,833. The increase in General Government includes increased legal
service fees and additional employee benefits; while the Public Safety increase resulted from higher contract costs;
and the increase in Culture and Recreation was primarily caused by the improvements made to Manatee Sanctuary
Park. The decline in Transportation expense was created by a decrease in activity on the North Atlantic Avenue
Project.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000 Expenses and Program Revenues -Governmental Activities
Expenses
Program Revenues
Business-type activities.
Business-type activities experienced an increase in net position of $1,045,759 or 6.30%.
• The major source of revenue for business-type activities is charges for services, which is up $208,686
(5.3%). This was the result of a Wastewater and Reclaimed Water rate increase totaling $206,333
during 2014.
• Investment income decreased by $7,622 (31.1%). Most of this revenue decline related to lower rates of
return being earned on investments as well as liquidations of investments due to ongoing Stormwater
projects during the year.
• Expenses for both Wastewater and Stormwater operations remained fairly constant during 2014. The
decrease for Business-type activities was $43,207 or 1.28%.
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 35 -
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Sewer Stormwater
Expenses & Program Revenues
Business-type Activities
Expenses Program Revenues
Revenues by Source
Business-type Activities
Charges for Services
Capital Grants and
Contributions
Investment Income
Miscellaneous revenues
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 36 -
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the City’s reporting of governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of the City’s net resources
available for spending at the end of the fiscal year.
Although the City has experienced a decrease in economic activity during prior years, the tide is turning. Strategic
efforts and plans have been put in place which will spur much needed economic growth. The City continues to
implement various cost-effective initiatives, including the streamlining of processes to effectively utilize its assets. In
the current year, the City issued a $5.5 Capital Improvement Revenue Note to fund various needed capital
improvements. The impact of this cash infusion, which had been only partially expended at September 30, 2014, is
evident in the improved fund balance for governmental funds. As of the end of the current fiscal year, the total fund
balance of the City’s governmental funds was $9,768,462, an increase of $2,614,321 or 36.54% from the prior fiscal
year.
The General Fund, the City’s main governmental fund, experienced an overall increase in fund balance of
$2,850,666 or 45.7%. The most significant reason for this increase is the revenue note mentioned above.
0%
20%
40%
60%
80%
100%
FY14 FY13
General Fund Current Expenditures by Function
Capital Outlay
Culture/Recreation
Physical Environment
Transportation
Public Safety
General Government
The General Fund is the City’s chief operating fund. At the end of the current fiscal year, total fund balance was
$9,091,797. Of this amount $124,668 relates to inventory and prepaids as well as long term advances and is
therefore nonspendable. The remaining fund balance includes restricted ($430,314), committed ($5,024,941),
assigned ($485,543), and unassigned ($3,026,331). Within the Committed Fund Balance category, the largest piece
is $3,742,637 for the construction of a new City Hall. The Assigned Fund Balance category represents $485,543
assigned for use in the 2015 budget. The unassigned fund balance represents 35.91% of the total general fund
expenditures, while total fund balance represents 107.89% of that same amount. Unassigned funds are available to
fund on-going activities of the City’s various services and programs.
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 37 -
The City maintains three additional major governmental funds. The Cape Canaveral CRA Fund reflects a negative
unassigned fund balance of ($62,968) at September 30, 2014. The fund balance represents the difference between
revenues and expenditures. The Capital Construction Fund has restricted fund balance for capital expansion of
$492,118 at year end. This represents a $232,237 decline over 2013 caused primarily by capital outlay expenditures
during 2014 for construction of the New Fire Station. The Enterprise Capital Fund also has negative unassigned fund
balance at September 30, 2014 of ($126,763). Capital expenditures in this fund related to major
Wastewater/Stormwater Projects. Nonmajor Special Revenue funds maintained fund balances at the end of the fiscal
year of:
• Police Education Fund $17,159
• Fire Protection Fund $22,046
• School Crossing Guard $2,691
• Library Fund $325,808
• Special Law Enforcement Trust $6,574
All fund balances of the Non-major governmental funds are restricted by an outside party as to use.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.
Unrestricted net position of the Wastewater Utility Fund at the end of the year amounted to $2,066,982, and the
Stormwater Utility amounted to $773,028. The total decrease in net position for both funds was $363,571 and
$34,284, respectively. Other factors concerning the finances of these two funds have already been addressed in the
discussion of the City’s business-type activities.
General Fund Budgetary Highlights
At the end of FY14, as of result of amendments made during the year, the final amended budget increased
$2,921,090 from the adopted budget. The most significant change was related to the issuance of the $5.5 Capital
Improvement Revenue Note and the appropriation of the same.
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 38 -
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000 General Fund Actual vs Budgets
Actual Expenditures
Final Budget
Original Budget
During the year, actual revenues on a budgetary basis were $8,625,707. This was lower than the final budgetary
estimate of $9,539,076 primarily attributable to budgeted amounts in miscellaneous revenue related to sale of fixed
assets and plan review income. Licenses and Permits revenue exceeded budgeted amounts by $8,500. This shortfall
in revenue was offset by actual expenditures for General Government that were $3,969,807 less than budgeted,
transportation costs that were $33,093 more than budgeted and Capital Outlay expenditures below budget by
$33,606. The General Government under budget variance represents revenue note proceeds appropriated but
unspent at September 30, 2014.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type activities as of
September 30, 2014, amounts to $34,232,581, net of accumulated depreciation. This investment in capital assets
includes land, buildings and system improvements, machinery and equipment, park facilities, roads and construction
work in progress. The City’s investment in capital assets increased $3,383,345; $2,577,140 (16.3%) in governmental
activities and $806,205 (5.4%) for business-type activities.
Significant capital asset events during the current fiscal year included the following:
• Manatee Sanctuary Park experienced an amazing uplift with paving of the parking lot and the half mile
pedway.
• Refurbishment of the Wastewater Treatment Plant (WWTP) Main Building was initiated in May 2014 and
included the construction of new restrooms, storage areas, a training room, kitchen facilities, a second
floor Operations Control Room, a bleach system building and hardening of the exterior of the Building to
code requirements. The renovation was completed in December 2014.
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 39 -
• An Emergency Generator was installed in fall 2014 at Lift Station #4 on Coquina Drive in the Harbor
Heights neighborhood. This Lift Station is the 5th in the City to be modified to include an emergency
generator for use during long power outages.
• The City maintained an active stormwater system maintenance program. Activities included the
replacement of older style stormwater inlets with new Type “C” inlets. These newer inlets require less
maintenance, are not damaged as easily by vehicular traffic, prohibit larger debris from entering the
stormwater system and provide improved stormwater flow. Exfiltration piping was also installed at two
locations in 2014 where significant street flooding occurred after heavy rainfall events. Street sweeping
of all curbed streets also continues on a monthly basis.
• In September 2014, the City completed the construction of a new Fire Station. This state of the art facility
will provide Cape Canaveral and the surrounding community with increased emergency support and
project increased confidence in the community as a whole.
• The New City Hall project got well under way through the purchase of 196 Polk Ave to house the
Community and Economic Development (CED) and Building/Code Enforcement Staff; the demolition of
the old CED building; Site Plan Development and Architectural and Engineering Design.
Additional information on the City’s capital assets can be found on pages 65-66 of this report.
Governmental Activities Business-type Activities Total
2014 2013 2014 2013 2014 2013
Land 7,248,237$ 7,256,030$ 351,084$ 351,084$ 7,599,321$ 7,607,114$
Buildings and Improvements 4,711,610 2,344,423 4,143,124 4,143,124 8,854,734 6,487,547
Machinery and Equipment 2,950,180 2,997,202 1,685,981 1,502,513 4,636,161 4,499,715
Infrastructure 6,935,854 6,724,637 22,449,569 22,450,251 29,385,423 29,174,888
Construction in Progress 740,105 326,464 1,707,728 137,474 2,447,833 463,938
22,585,986 19,648,756 30,337,486 28,584,446 52,923,472 48,233,202
Less: Accumulated Depreciation (4,166,104) (3,806,014) (14,524,787) (13,577,952) (18,690,891) (17,383,966)
Capital Assets, net 18,419,882$ 15,842,742$ 15,812,699$ 15,006,494$ 34,232,581$ 30,849,236$
City of Cape Canaveral's Capital Assets
(net of depreciation)
Long-term debt. At the end of the current fiscal year, the City had a total long-term debt outstanding of $6,923,228.
The business-type activities long term debt is from a State Revolving Loan related to Sewer System improvements
constructed in 1995 and 1996. Note that compensated absences and the liability for other post-employment benefits
are also included in long term liabilities of the City.
The governmental activities long term debt includes a $5.5 Capital Improvement Revenue Note issued to finance the
City Hall project, Fire Station, the Main Wastewater and other capital projects throughout the City.
Additional information on the City of Cape Canaveral’s long-term debt can be found on pages 66-68 of this report.
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
- 40 -
City of Cape Canaveral’s Outstanding Debt
General Obligation
Governmental Activities Business-type Activities Total
2014 2013 2014 2013 2014 2013
Revenue Note 5,500,000 - - - 5,500,000 -
State revolving loans - - 1,423,228 2,020,187 1,423,228 2,020,187
5,500,000$ -$ 1,423,228$ 2,020,187$ 6,923,228$ 2,020,187$
Economic Factors and Next Year’s Budgets and Rates
• The unemployment rate decreased from 7.8% in the prior year to 6.4%.
• The real estate market continues to trend upward. Property values for Calendar Year 2014 showed an
increase of 8.1%. The median home sales price rose to $137,157 up from $126,880 at the end of 2013.
• Cape Canaveral, as well as Brevard County, continues to show improvement due to increased industry
growth at the Kennedy Space Center and Canaveral Air Force Station; increased Aerospace and High
Technological Manufacturing Companies such as Embraer S.A. and Northrup Grumman’s expansion at
the Melbourne International Airport; and numerous service-oriented companies countywide.
• In an effort to take advantage of the opportunities provided by the City’s proximity to Port Canaveral,
Cape Canaveral Air Force Station, Kennedy Space Center, two International Airports, and Orlando, the
City is actively pursuing economic development/redevelopment through its creation of the Community
Redevelopment Agency (CRA).
• The City has and will continue to increase its revenue stream. An increase to the wastewater rate in
October 2013, and the first full year benefit from the Public Service Tax on water consumption enhanced
revenue. The City maintained Ad valorem taxes at fiscal 2013 rates in the 2014 budget by implementing
a millage rate that represented the rolled-back rate.
All of these factors were considered in preparing the City’s budget for the 2015 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the City of Cape Canaveral’s finances. Questions
concerning any of the information provided in this report or requests for additional financial information should be
addressed to the Office of the Administrative/Financial Services Director, 105 Polk Avenue, Cape Canaveral, FL
32920.
- 41 -
Basic Financial Statements
Governmental Business-Type
Activities Activities Total
Assets
Equity in pooled cash and investments 10,119,013$ 2,364,924$ 12,483,937$
Receivables, net 321,595 760,180 1,081,775
Due from other governments 441,815 - 441,815
Inventories and prepaid items 24,668 - 24,668
Restricted assets:
Equity in pooled cash and investments 8,354 439,795 448,149
Capital assets:
Total capital assets, not being depreciated 7,988,342 2,058,812 10,047,154
Total capital assets, being depreciated, net of
accumulated depreciation 10,431,540 13,753,887 24,185,427
Total Assets 29,335,327$ 19,377,598$ 48,712,925$
Liabilities
Accounts payable and accrued liabilities 610,875$ 155,250$ 766,125$
Unearned revenue and deposits 527,754 - 527,754
Payable from restricted assets:
Accrued interest payable - 15,856 15,856
Zoning escrow 8,354 - 8,354
Noncurrent liabilities:
Due within one year:
Long-term debt 509,000 621,177 1,130,177
Compensated absences payable 182,595 90,507 273,102
Due in more than one year:
Long-term debt 4,991,000 802,051 5,793,051
Compensated absences payable 45,649 22,626 68,275
Net OPEB obligation 24,289 16,711 41,000
Total Liabilities 6,899,516$ 1,724,178$ 8,623,694$
Net Position
Net investment in capital assets 12,919,882$ 14,389,471$ 27,309,353$
Restricted for:
Recycled products 48,935 - 48,935
Tree mitigation 128,338 - 128,338
Debt service 253,041 365,291 618,332
Public safety 48,470 - 48,470
Culture/recreation 325,808 - 325,808
Capital expansion 492,118 58,648 550,766
Unrestricted 8,219,219 2,840,010 11,059,229
Total Net Position 22,435,811$ 17,653,420$ 40,089,231$
Primary Government
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
The accompanying notes to financial statements
are an integral part of this statement.
- 42 -
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
Functions/Programs
Governmental activities
General government 1,196,010$ 22,890$ -$ -$ (1,173,120)$ -$ (1,173,120)$
Public safety 4,988,955 509,007 - - (4,479,948) - (4,479,948)
Transportation 976,126 - 283,621 293,678 (398,827) - (398,827)
Physical environment 971,376 983,463 - - 12,087 - 12,087 Culture/recreation 721,749 85,832 - - (635,917) - (635,917)
Interest on long-term debt 47,124 - - - (47,124) - (47,124)
Total governmental activities 8,901,340 1,601,192 283,621 293,678 (6,722,849) - (6,722,849)
Business-type activities
Wastewater 2,867,552 3,569,928 - - - 702,376 702,376
Stormwater 463,618 579,494 - - - 115,876 115,876
Total business-type activities 3,331,170 4,149,422 - - - 818,252 818,252
Total primary government 12,232,510$ 5,750,614$ 283,621$ 293,678$ (6,722,849) 818,252 (5,904,597)
General revenues
Property taxes 3,244,566 - 3,244,566
Utility and franchise taxes 2,302,715 - 2,302,715
Intergovernmental revenues, unrestricted 794,366 - 794,366 Investment income 65,002 16,903 81,905
Miscellaneous revenues 121,673 - 121,673
Transfers (210,604) 210,604 -
Total general revenues and transfers 6,317,718 227,507 6,545,225
Change in net position (405,131) 1,045,759 640,628
Net position, beginning of year, as restated 22,840,942 16,607,661 39,448,603
Net position, end of year 22,435,811$ 17,653,420$ 40,089,231$
Primary Government
Changes in Net PositionProgram Revenues
Net (Expense) Revenue and
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2014
The accompanying notes to financial statements
are an integral part of this statement.
- 43 -
Cape Canaveral Capital Enterprise Nonmajor TotalGeneral CRA Construction Capital Governmental GovernmentalFund Fund Fund Fund Funds FundsAssetsEquity in pooled cash and investments 9,013,882$ 36,619$ 660,264$ 37,296$ 379,306$ 10,127,367$ Receivables 321,182 413 - - - 321,595 Due from other governments441,813 - - - 2 441,815 Advances to other funds 100,000 - - - - 100,000 Inventories and prepaid items 24,668 - - - - 24,668 Total Assets9,901,545$ 37,032$ 660,264$ 37,296$ 379,308$ 11,015,445$ Liabilities and Fund BalancesAccounts payable and accrued liabilities 273,640$ -$ 168,146$ 164,059$ 5,030$ 610,875$ Zoning escrow 8,354 - - - - 8,354 Unearned revenue and deposits 527,754 - - - 527,754 Advances from other funds - 100,000 - - - 100,000 Total liabilities 809,748 100,000 168,146 164,059 5,030 1,246,983 Fund balances:Nonspendable:Inventories and prepaids 24,668 - - - - 24,668 Long-term interfund advance 100,000 - - - - 100,000 Restricted for:Tree mitigation 128,338 - - - - 128,338 North Atlantic Avenue - - - - - - Recycled products 48,935 - - - - 48,935 Public safety- - - - 48,470 48,470 Culture/recreation - - - - 325,808 325,808 Debt Service 253,041 - - - - 253,041 Capital expansion - - 492,118 - - 492,118 Committed to:Capital equipment renewal and replacement 522,979 - - - 522,979 New facility3,742,637 - - - - 3,742,637 Wasterwater Treatment Plant building 575,000 575,000 Recreation expansion 107,019 107,019 Police expansion 77,306 77,306 Assigned to:- 2015 budget 485,543 - - - - 485,543 Unassigned 3,026,331 (62,968) - (126,763) - 2,836,600 Total fund balances 9,091,797 (62,968) 492,118 (126,763) 374,278 9,768,462 Total Liabilities and Fund Balances9,901,545$ 37,032$ 660,264$ 37,296$ 379,308$ 11,015,445$ CITY OF CAPE CANAVERAL, FLORIDABALANCE SHEETSEPTEMBER 30, 2014GOVERNMENTAL FUNDSThe accompanying notes to financial statementsare an integral part of this statement.- 44 -
Fund Balances - Total Governmental Funds 9,768,462$
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.
Governmental capital assets 22,585,986
Accumulated depreciation (4,166,104)
18,419,882
Long-term liabilities are not due and payable in the current
period, and therefore, are not reported in the funds. All liabilities,
both current and non-current, are reported in the statement
of net position. Long term liabilities at year end consist of:
Long-term debt (5,500,000)
Compensated absences payable (228,244)
Net OPEB obligation (24,289)
(5,752,533)
Net Position of Governmental Activities 22,435,811$
CITY OF CAPE CANAVERAL, FLORIDA
RECONCILIATION OF THE BALANCE SHEET OF THE
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
The accompanying notes to financial statements
are an integral part of this statement.
- 45 -
Cape Canaveral Capital Enterprise Nonmajor TotalGeneral CRA Construction Capital Governmental GovernmentalFund Fund Fund Fund Funds FundsRevenuesTaxes:Property3,185,755$ -$ -$ -$ 58,811$ 3,244,566$ Local option motor fuel283,621 - - - - 283,621 Utility and franchise2,242,170 - - - - 2,242,170 Intergovernmental1,206,366 30,794 - - - 1,237,160 Licenses and permits214,674 - - - - 214,674 Charges for services1,178,777 - - - - 1,178,777 Fines and forfeitures80,850 - - - 3,323 84,173 Investment earnings58,974 - 7,741 - (1,713) 65,002 Miscellaneous174,520 - - - 174,520 Total revenues 8,625,707 30,794 7,741 - 60,421 8,724,663 ExpendituresCurrent:General government1,137,376 - - - - 1,137,376 Public safety4,683,591 - - - 2,972 4,686,563 Transportation708,679 - - - - 708,679 Physical environment971,376 - - - - 971,376 Culture/recreation506,028 93,762 - - 29,849 629,639 Capital outlay372,353 - 2,912,945 1,771,029 32,801 5,089,128 Debt service:Interest47,124 - - - - 47,124 Total expenditures 8,426,527 93,762 2,912,945 1,771,029 65,622 13,269,885 Excess (deficiency) of revenuesover expenditures199,180 (62,968) (2,905,204) (1,771,029) (5,201) (4,545,222) Other financing sources Proceeds from sale of assets99,119 - - - - 99,119 Transfers in 537,182 - 3,059,815 1,644,266 193,797 5,435,060 Transfers out(3,484,815) - (386,848) - (2,973) (3,874,636) Issuance of long term debt5,500,000 - - - - 5,500,000 Total other financing sources (uses)2,651,486 - 2,672,967 1,644,266 190,824 7,159,543 Net change in fund balances2,850,666 (62,968) (232,237) (126,763) 185,623 2,614,321 Fund balances, beginning of year6,241,131 - 724,355 - 188,655 7,154,141 Fund balances, end of year9,091,797$ (62,968)$ 492,118$ (126,763)$ 374,278$ 9,768,462$ FOR THE YEAR ENDED SEPTEMBER 30, 2014CITY OF CAPE CANAVERAL, FLORIDASTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES INFUND BALANCES - GOVERNMENTAL FUNDSThe accompanying notes to financial statementsare an integral part of this statement.- 46 -
Net Change in Fund Balances - Total Governmental Funds 2,614,321$
Amounts reported for governmental activities in the statement
of activities are different because:
Governmental funds report capital outlays as expenditures
However, in the statement of activities, the cost of these assets
is depreciated over their estimated useful lives
Expenditures for capital assets 5,089,128
Less: Current year depreciation (555,120)
4,534,008
Property and equipment contributed from the Enterprise Capital
fund to the Enterprise funds (1,771,029)
Certain revenues collected and recognized in governmental
funds in the current year, were recorded as revenue
on the accrual basis in prior years in the statement
of activities (17,850)
Governmental funds only report the disposal of fixed assets to the
extent proceeds are received from the sale. In the statement of
activities, a gain or loss is recorded for each disposal. (185,839)
Loan proceeds are reported as financing sources in the governmental
funds. However, the issuance of debt is reported as long-term debt
payable in the statement of net position.
Issuance of long-term debt (5,500,000)
Some expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not
reported as expenditures in governmental funds.
Compensated absences payable (73,591)
Net OPEB obligation (5,151)
(78,742)
Change in Net Position of Governmental Activities (405,131)$
CITY OF CAPE CANAVERAL, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 2014
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
TO THE STATEMENT OF ACTIVITIES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
The accompanying notes to financial statements
are an integral part of this statement.
- 47 -
Original Final Actual
Revenues
Taxes:
Property 3,191,484$ 3,185,755$ 3,185,755$ -$
Local option motor fuel 365,000 283,621 283,621 -
Utility and franchise 2,304,036 2,242,170 2,242,170 -
Intergovernmental 1,028,567 1,206,366 1,206,366 -
Licenses and permits 236,850 206,174 214,674 8,500
Charges for services 1,224,096 1,178,777 1,178,777 -
Fines and forfeitures 57,900 80,850 80,850 -
Investment earnings 128,409 58,974 58,974 -
Contributions and donations 2,500 - - -
Miscellaneous 1,075,395 1,096,389 174,520 (921,869)
Total revenues 9,614,237 9,539,076 8,625,707 (913,369)
Expenditures
Current:
General government 1,823,495 5,107,183 1,137,376 3,969,807
Public safety 4,699,950 4,683,591 4,683,591 -
Transportation 729,080 675,586 708,679 (33,093)
Physical environment 1,013,100 971,376 971,376 -
Culture/recreation 511,547 506,030 506,028 2
Capital outlay 698,588 405,959 372,353 33,606
Debt service:
Interest - 47,125 47,124 1
Total expenditures 9,475,760 12,396,850 8,426,527 3,970,323
Excess (deficiency) of revenues
over expenditures 138,477 (2,857,774) 199,180 3,056,954
Other financing sources
Proceeds from sale of assets 30,000 99,119 99,119 -
Transfers in 340,273 537,182 537,182 -
Transfers out (908,518) (3,484,815) (3,484,815) -
Issuance of long term debt - 5,500,000 5,500,000 -
Total other financing sources (538,245) 2,651,486 2,651,486 -
Net change in fund balances (399,768) (206,288) 2,850,666 3,056,954
Fund balances, beginning of year 6,241,131 6,241,131 6,241,131 -
Fund balances, end of year 5,841,363$ 6,034,843$ 9,091,797$ 3,056,954$
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Variance
Positive
(Negative)
Budgeted Amounts
The accompanying notes to financial statements
are an integral part of this statement.
- 48 -
Original Final Actual
Revenues
Taxes:
Intergovernmental 22,600$ 30,794$ 30,794$ -
Investment earnings 500 - - -
Total revenues 23,100 30,794 30,794 -
Expenditures
Current:
Culture/recreation 106,300 130,794 93,762 37,032
Capital outlay 16,800 - - -
Total expenditures 123,100 130,794 93,762 37,032
Excess (deficiency) of revenues
over expenditures (100,000) (100,000) (62,968) 37,032
Other financing sources
Transfers in 100,000 100,000 - (100,000)
Transfers out - - - -
Total other financing sources 100,000 100,000 - (100,000)
Net change in fund balances - - (62,968) (62,968)
Fund balances, beginning of year - - - -
Fund balances, end of year -$ -$ (62,968)$ (62,968)$
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Budgeted Amounts Variance
Positive
(Negative)
The accompanying notes to financial statements
are an integral part of this statement.
- 49 -
Wastewater Fund Stormwater Fund Total
Assets
Current assets:
Equity in pooled cash and investments 1,638,632$ 726,292$ 2,364,924$
Receivables, net 654,572 105,608 760,180
Restricted assets:
Equity in pooled cash and investments 439,795 - 439,795
Total current assets 2,732,999 831,900 3,564,899
Capital assets:
Total capital assets, not being depreciated 1,847,809 211,003 2,058,812
Total capital assets, being depreciated, net of
accumulated depreciation 12,044,999 1,708,888 13,753,887
Capital assets, net 13,892,808 1,919,891 15,812,699
Total Assets 16,625,807$ 2,751,791$ 19,377,598$
Liabilities
Current liabilities:Accounts payable and accrued liabilities 129,723$ 25,527$ 155,250$
Current portion of compensated absences 64,565 25,942 90,507
Current portion of long-term debt 621,177 - 621,177
Liabilities payable from current restricted assets:
Accrued interest payable 15,856 - 15,856
Total current liabilities 831,321 51,469 882,790
Noncurrent liabilities:
Long-term portion of compensated absences 16,141 6,485 22,626
Long-term debt payable after one year 672,272 129,779 802,051
Net OPEB obligation 15,793 918 16,711
Total noncurrent liabilities 704,206 137,182 841,388
Total Liabilities 1,535,527$ 188,651$ 1,724,178$
Net Position
Net investment in capital assets 12,599,359$ 1,790,112$ 14,389,471$ Restricted for:
Debt service 365,291 - 365,291
Capital expansion 58,648 - 58,648
Unrestricted 2,066,982 773,028 2,840,010
Total Net Position 15,090,280$ 2,563,140$ 17,653,420$
Business-type Activities - Enterprise Funds
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDSSEPTEMBER 30, 2014
The accompanying notes to financial statements
are an integral part of this statement.
- 50 -
Wastewater Fund Stormwater Fund Total
Operating revenues
Charges for sales and services:
Wastewater charges 3,569,928$ -$ 3,569,928$
Stormwater charges - 579,494 579,494
Total operating revenues 3,569,928 579,494 4,149,422
Operating expenses
Operating and maintenance:
Personal services 1,175,980 200,493 1,376,473
Materials and supplies 133,382 1,012 134,394
Other operating and maintenance 636,671 154,404 791,075
Depreciation 867,181 107,369 974,550
Total operating expenses 2,813,214 463,278 3,276,492
Operating income 756,714 116,216 872,930
Nonoperating revenues (expenses)
Investment earnings 9,883 7,020 16,903
Loss on sale or disposal of assets (7,590) (340) (7,930)
Interest expense (46,748) - (46,748)
Total nonoperating revenues (expenses) (44,455) 6,680 (37,775)
Income before contributions and transfers 712,259 122,896 835,155
Capital contributions 1,540,002 231,026 1,771,028
Transfers out (1,295,535) (264,889) (1,560,424)
Change in net position 956,726 89,033 1,045,759
Total net position, beginning of year, as restated 14,133,554 2,474,107 16,607,661
Total net position, end of year 15,090,280$ 2,563,140$ 17,653,420$
Business-type Activities - Enterprise Funds
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
The accompanying notes to financial statements
are an integral part of this statement.
- 51 -
Wastewater Fund Stormwater Fund Total
Cash flows from operating activities
Cash received from customers 3,497,395$ 573,064$ 4,070,459$
Cash paid to suppliers (773,192) (144,672) (917,864)
Cash paid to employees (1,145,939) (183,949) (1,329,888)
Net cash provided by operating activities 1,578,264 244,443 1,822,707
Cash flows from noncapital financing activities
Transfers in (out) (1,295,535) (264,889) (1,560,424)
Net cash used in noncapital financing activities (1,295,535) (264,889) (1,560,424)
Cash flows from capital and related financing activities
Principal payments on capital debt (602,635) - (602,635)
Interest paid (46,748) - (46,748)
Acquisition and construction of capital assets (11,981) - (11,981)
Net cash used in capital and related
financing activities (661,364) - (661,364)
Cash flows from investing activities Interest received 9,883 7,020 16,903
Net cash used in investing activities 9,883 7,020 16,903
Net increase (decrease) in cash and cash equivalents (368,752) (13,426) (382,178)
Cash and cash equivalents, beginning of year 2,447,179 739,718 3,186,897
Cash and cash equivalents, end of year 2,078,427$ 726,292$ 2,804,719$
Reconciliation of operating income to net
cash provided by operating activities
Operating income 756,714$ 116,216$ 872,930$
Adjustment to reconcile operating income to net cash provided by operating activities:
Depreciation 867,181 107,369 974,550
Decrease (increase) in certain assets: Accounts receivable (72,533) (6,430) (78,963)
Inventories and prepaid items - - -
Increase (decrease) in certain liabilities:
Compensated absences payable 27,504 14,007 41,511
Accounts payable and accrued liabilities (3,139) 10,744 7,605 Net OPEB liability 2,537 2,537 5,074
Net cash provided by operating activities 1,578,264$ 244,443$ 1,822,707$
Noncash investing, capital and financing activities:
Contributions of capital assets from capital funds 1,540,002$ 231,026$ 1,771,028$
Capitalized interest 3,519$ 2,157$ 5,676$
Business-type Activities - Enterprise Funds
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
The accompanying notes to financial statements
are an integral part of this statement.
- 52 -
- 53 -
Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 54 -
(1) Summary of Significant Accounting Policies:
The City of Cape Canaveral, Florida, (the City) was created pursuant to Chapter 73-129, Laws of Florida,
in 1963. The legislative branch of the City is composed of an elected Mayor and four Council Members.
The City Council is governed by the City Charter and by state and local laws and regulations. The City
Council is responsible for the establishment and adoption of policy. The execution of such policy is the
responsibility of the Council-appointed City Manager.
The financial statements of the City of Cape Canaveral, Florida, have been prepared in conformance with
accounting principles generally accepted in the United States of America as applicable to governmental
units. The Governmental Accounting Standards Board (GASB) is the accepted body for promulgating
governmental accounting and financial reporting principles. The following is a summary of the more
significant policies.
(a) Reporting entity⎯The accompanying financial statements present the financial position,
results of operations and cash flows of the applicable fund types controlled by or dependent on the
City. In evaluating the City as a reporting entity, management has addressed all potential component
units for which the entity may or may not be financially accountable and, as such, be included
within the City's financial statements.
(b) Blended component unit⎯A blended component unit, although legally separate, is, in
substance, part of the City’s operations. The following entities are blended with the primary
government and reported as indicated:
The Cape Canaveral Free Public Library fund is responsible for exterior maintenance and risk
management of the City-owned library. The members of the advisory board are appointed by the
City Council and are tasked to act on the City’s behalf. Funding for these specific purposes are
derived by voter-approved ad valorem taxes and the legal liability remains with the City Council.
Library operations are funded through the Brevard County Free Public Library District (the
District), a separate taxing authority, and is therefore not included under the reporting entity
definition of the City’s financial statements.
The Cape Canaveral Community Redevelopment Agency (the Cape Canaveral CRA) was created
by Ordinance No. 23-2013 to account for the receipt and expenditure of property tax revenues from
the tax increment financing district to support City redevelopment in the designated community
redevelopment area. Although legally separate, the City Council declared itself to be the Cape
Canaveral CRA. Since the City is financially accountable for the activities of the Cape Canaveral
CRA, its governing board is the same, and its relationship to the City is significant, its financial
activities are reported on a blended basis as if it were part of the primary government as a major
special revenue fund.
(c) Government-wide and fund financial statements⎯The government-wide financial
statements, comprised of the statement of position and the statement of activities, report aggregated
information for the overall government for all of the activities of the primary government. For the
most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes, intergovernmental revenues, and other
nonexchange revenues are reported separately from business-type activities, which rely, to a
significant extent, on fees charged to external parties for goods or services for support.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 55 -
(1) Summary of Significant Accounting Policies: (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function
or activity is offset by program revenues. Direct expenses are those that are clearly identifiable with
a specific function or activity. Program revenues include (l) 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 nonexchange revenues not
properly included among program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported in separate
columns in the fund financial statements.
(d) Measurement focus, basis of accounting, and financial statement presentation⎯The
government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund 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.
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary 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.
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 60
days of the end of the current fiscal period except for grant revenues which are considered earned
when expenditures are incurred. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, intergovernmental revenues, 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 the government receives cash.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 56 -
(1) Summary of Significant Accounting Policies: (Continued)
The City reports the following major governmental funds:
General Fund⎯The General Fund is the principal fund of the City which accounts for all
financial transactions not accounted for in other funds.
Cape Canaveral Community Redevelopment Fund⎯The Cape Canaveral CRA Fund
accounts for the receipt and expenditure of property tax revenues from the tax increment
financing district to support City redevelopment in the Cape Canaveral community
redevelopment area.
Capital Construction Fund⎯The Capital Construction Fund accounts for resources
accumulated and payments made for the acquisition of land and construction of major capital
facilities related to governmental funds.
Enterprise Capital Fund⎯The Enterprise Capital Fund accounts for resources accumulated and payments made for the acquisition of land and construction of major capital facilities
related to business-type funds.
The City reports the following major proprietary funds:
Wastewater Fund⎯The Wastewater Fund accounts for the activities of the City’s wastewater
system. The City operates the sewage treatment plant, sewage pumping stations, collection,
and reclaimed water systems, which are financially similar to private business enterprises,
where the costs, including depreciation, of providing services to the general public on an
ongoing basis are financed through user charges.
Stormwater Fund⎯The Stormwater Fund is used to account for the activities of the City’s
stormwater management, conservation, protection, control, use and enhancement of
stormwater, the costs of which are recovered by user charges.
Additionally, the City reports the following fund types:
Special Revenue Funds⎯These funds account for the proceeds of specific revenue sources
(other than capital projects) which are legally restricted or committed to finance particular
functions or activities of the City.
Amounts reported in the funds as interfund receivables and payables have been eliminated in the governmental and business-type activities columns, except for the net residual amounts due between
governmental and business-type activities, which are presented as internal balances due to and due from these different types of activities within the primary government.
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 activities. For the City, operating revenues
come from fees for wastewater and stormwater services, which are the principal ongoing operations of the City's Wastewater and Stormwater Fund. Operating expenses include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 57 -
(1) Summary of Significant Accounting Policies: (Continued)
(e) Budgets and budgetary accounting⎯Annual budgets for all governmental and proprietary
funds were adopted in compliance with Florida law. The basis on which the budgets are prepared is
consistent with generally accepted accounting principles. Budgetary integration is established in the
accounting records for management control purposes at the object of expenditure level; however the
City Charter establishes the level at which expenditures may not legally exceed the total City-wide appropriations. The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
(i) On or before June 30th, the City Manager submits a preliminary budget to the City
Council for the ensuing fiscal year.
(ii) Budget workshop sessions are scheduled by the City Manager as needed.
(iii) Prior to October 1, the budgets are legally enacted through passage of an ordinance.
(iv) The City Council reviews the monthly financial reports.
(v) The City Manager has the authority to approve budget transfers between line items,
expenditure classifications, and departments. The City Council must approve all inter-
departmental budget amendments and/or transfers that increase the total appropriations.
Budgetary control is exercised at the fund level.
(vi) Every appropriation lapses at the close of the fiscal year.
(f) Cash and cash equivalents⎯Cash and cash equivalents include amounts in demand deposits
as well as investments that are readily convertible to known amounts of cash. Investments with
original maturities of three months or less are considered to be cash equivalents. In addition,
investments in money market funds are sufficiently liquid to permit withdrawal of cash at any time
without prior notice or penalty, thus equity in these funds is also deemed to be a cash equivalent.
(g) Receivables⎯Accounts receivable balances are stated at the amount management expects to
collect from outstanding balances. The City contracts with the City of Cocoa, Florida for utility
billing services. Therefore, included in the accounts receivables balances, are amounts which have
been billed on behalf of the City, but not yet collected; amounts which have been collected by the
City of Cocoa, but not yet remitted to the City; and amounts earned by the City, but have not been billed to the customers as of September 30, 2014.
(h) Inventories and prepaid items⎯The cost of inventory is accounted for on the consumption
method wherein inventories are charged as expenditures when used rather than when purchased. All inventories are valued at cost, which approximates market, by using the first-in, first-out valuation
method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements. The cost of prepaid items
is recorded as expenditures/expenses when consumed rather than when purchased.
(i) Restricted assets⎯Certain amounts are classified as restricted assets because their use is
limited by applicable debt covenants or laws/regulations imposed by other governmental agencies.
The restricted assets are used to report resources set aside to 1) provide a reserve for debt service, 2)
provide for capital expansion, and 3) acquire capital assets.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 58 -
(1) Summary of Significant Accounting Policies: (Continued)
(j) Capital assets⎯Capital assets, which include property, plant, equipment and infrastructure assets, 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. Contributed assets are recorded at fair market value as of the date received.
Depreciation is reported for the primary government using the straight-line method calculated on a service-life basis to amortize the cost of the asset over their estimated economic useful lives, which are as follows:
Assets Years
Buildings and improvements 30 - 50 Improvements other than buildings3 -20
Machinery and equipment 3 - 20
Infrastructure 30 - 50
(k) Zoning escrow⎯This liability is comprised of amounts received from private business to be used on their behalf for special projects. If the funds are not used, they are to be returned to the
private business. Amounts used are not reported as revenues or expenditures in the accompanying
financial statements.
(l) Compensated absences⎯The City records the earned portion of accumulated, unused compensated absences at year-end based on each employee’s unused hours and rate of pay,
including the City’s share of payroll taxes. All compensated absences are accrued when incurred in
the government-wide and proprietary fund financial statements as accrued liabilities. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result
of employee resignations or retirements.
(m) Unearned revenue and deposits⎯Unearned revenue and deposits of $527,754 are recorded on the governmental fund balance sheet. This represents local business tax receipts collected in
advance, and funds received from Brevard County for the North Atlantic Avenue Streetscape
Project. Tax receipts are recognized as revenue in the period to which they relate. Monies for the
streetscape project are recognized as revenue as the City incurs allowable costs associated with this
project.
(n) Long-term obligations⎯In the government-wide financial statements, and proprietary 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.
(o) Fund balance⎯Fund balance of governmental funds is reported in various categories based
on the nature of any limitations requiring the use of resources for specific purposes. The following
classifications describe the relative strength of the spending constraints:
Nonspendable fund balance - amounts that are not in spendable form (such as prepaid
expenses and advances due from other funds) or are required to be maintained intact.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 59 -
(1) Summary of Significant Accounting Policies: (Continued)
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.
Committed fund balance - amounts constrained to specific purposes by the City itself, via a City Council ordinance. To be reported as committed, amounts cannot be used for any other purpose unless the City changes the constraint via ordinance.
Assigned fund balance - amounts the City intends to use for a specific purpose, but do not meet the criteria to be classified as committed. The City Council has by resolution, authorized the city manager to assign fund balance.
Unassigned fund balance - amounts that are available for any purpose. Positive amounts are reported only in the general fund.
Disbursements of fund balance reserves will first be made from restricted amounts when both restricted and unrestricted fund balance is available. Additionally, the City will first use committed fund balance, followed by assigned fund balance, and then unassigned fund balance when
expenditures are incurred for purposes which amounts in any of the unrestricted fund balance
classifications could be used.
(p) General fund balance policy⎯The City has adopted an ordinance whereby the minimum unassigned fund balance must be at least 20% of the current fiscal year original budgeted expenditures.
(q) Use of estimates⎯Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates
assumed in preparing the financial statements.
(r) Implementation of new accounting standards⎯At September 30, 2014 and for the year then ended, the City has implemented Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported As Assets and Liabilities. See Note 16 for the effect of GASB 65
on beginning net position.
(2) Reconciliation of Government-Wide and Fund Financial Statements:
(a) Reconciliation of the balance sheet of the governmental funds to the statement of net
position⎯Following the governmental fund balance sheet is a reconciliation between fund balance - total governmental funds and net position – governmental activities as reported in the government-
wide statement of net position. A detailed explanation of these differences is provided in the above
referenced financial statement.
(b) Reconciliation of the statement of revenues, expenditures, and changes in fund balances
of governmental funds to the statement of activities⎯Following the governmental fund statement of revenues, expenditures, and changes in fund balances, there is a reconciliation between net
changes in fund balances – total governmental funds and changes in net position of governmental
activities as reported in the government-wide statement of activities. A detailed explanation of these
differences is provided in the above referenced financial statement.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 60 -
(3) Property Tax Calendar:
Under Florida law, the assessment of all properties and the collection of all county, municipal and
school district property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws of the state regulating tax assessment are also designed to assure a
consistent property valuation method statewide. State Statutes permit municipalities to levy property
taxes at a rate of up to 10 mills.
The millage rate assessed by the City on the tax roll certified on November 1, 2013 was 3.9102
mills (.4816 for beautification projects; .0709 for the library fund, 1.4390 for fire rescue, and 1.9187
for police operations).
The property tax calendar is as follows:
Valuation Date January 1
Property Appraiser prepares the assessment roll with values as of January 1,
submits this preliminary roll for approval by the State and notifies each taxing
authority of their respective valuations.
July 1
City Council adopts a budget and ad valorem tax millage rate for the coming fiscal year. September
Property Appraiser certifies the assessment roll and all real and tangible personal property taxes are due and payable (Levy date). November 1
A Notice of Taxes is mailed to each property owner on the assessment roll.
Taxes may be paid November through March, with the following applicable
discounts:
November 1
Month Paid Discount Percent November 4
December 3 January 2
February 1
March 0
November 1, 2013through
March 31, 2014
All unpaid taxes on real and tangible personal property become delinquent. April 1
A list of unpaid tangible personal property taxes and a list of unpaid real
property taxes are advertised.
April and May
Tax certificates are sold on all real estate parcels with unpaid real property
taxes (Lien date).
May 31
A court order is obtained authorizing the seizure and sale of personal property
if the taxpayer fails to pay the delinquent personal property taxes.
August 29
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 61 -
(4) Deposits and Investments:
Deposits: All bank balance deposit amounts are covered by federal depository insurance or
collateral with the State of Florida under the Florida Security for Public Deposits Act.
The Florida Security for Public Deposits Act establishes guidelines for qualification and
participation by banks and savings associations, procedures for the administration of the collateral
requirements, and characteristics of eligible collateral. Under the Act, City deposits in qualified
public depositories are fully insured. The qualified public depository must pledge 50% of the
average daily balance for each month of all public deposits in excess of any applicable depository
insurance. Additional collateral, up to a maximum of 125% may be required if deemed necessary
under the conditions set forth in the Act. Obligations pledged to secure deposits must be delivered to
the State Treasurer, or with the approval of the State Treasurer, to a bank, savings association, or
trust company provided a power of attorney is delivered to the Treasurer.
Investments: The City’s investment policies are governed by state statutes and City Ordinances. As
of September 30, 2014, the City follows guidelines of authorized investments under Section
218.415(17), Florida Statutes. Investments authorized under this provision of the state statutes are
limited to: the Florida Local Government Surplus Funds Trust Fund (SBA), or any
intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality
rating from a nationally recognized rating agency; interest bearing time deposits or savings
accounts in state-certified qualified public depositories; direct obligations of the U.S. Treasury, and
securities of, or other interests in, any open-end or closed-end management-type investment
company or investment trust registered under the Investment Company Act of 1940.
At September 30, 2014, the City had the following deposits and investments included in cash and
cash equivalents:
Investment Type
Fair Value at September 30,
2014 Maturity
Credit
Rating
Government-wide:
Cash in banks $ 2,281,561 Less than 1
year
N/A
Florida Division of Treasury – Special Purpose
Investment Account
10,577,357 2.57 years A+f
State Board of Administration – Local Government Investment Pool – Prime Fund 73,168 39 days AAAm
Total Government-wide deposits and investments $ 12,932,086
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 62 -
(4) Deposits and Investments: (Continued)
Interest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of investments. In accordance with the provisions of the state statutes governing allowable
investments, the City manages its exposure to declines in fair values by limiting the maturity of
specific investments to provide sufficient liquidity to pay obligations as they come due.
Credit Risk: Credit rate risk is the risk of losses due to the failure of the security issue or backer.
This is mitigated by investing in the assets allowed under State Ordinance and by diversifying the
portfolio so that potential losses on individual securities will be minimized.
Custodial Credit Risk: For an investment, this 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 investments in the Florida Local Government Surplus Funds Trust Fund Investment Pool
(LGIP), a Securities and Exchange Commission rule 2a7-like external investment pool, are similar
to money market funds in which shares are owned in the fund rather than the underlying
investments. The LGIP is administered by the State Board of Administration (SBA) pursuant to
section 218.405 of the Florida Statutes.
Fund A, currently known as the Local Government Surplus Funds Trust Fund (Florida PRIME), is a
Securities and Exchange Commission rule 2a7-like external investment pool. The pool invests in
short–term, high-quality fixed income securities. To be considered high-quality, the security must be
rated highest in the short-term rating category by one or more nationally recognized statistical
ratings organizations, or deemed to be of comparable quality by the investment manager. The
account balance of this fund is considered to be the fair value of this investment.
The City also has investments in the State of Florida Division of Treasury’s Special Purpose
Investment Account (SPIA), of which the City owns a share of the Pool, not the underlying
securities. At June 30, 2014, the fair value factor for the SPIA was 1.0074. Additional valuation
information is available in the State of Florida’s Comprehensive Annual Financial Report, which
can be obtained through their website, www.myfloridacfo.com.
Concentrations of Credit Risk: The City’s policy does not limit the amount that can be invested in
any one issuer. As of September 30, 2014, all investments of the City are held in the pooled
investment accounts administered by the State of Florida.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 63 -
(5) Receivables:
The City's receivables at September 30, 2014, consist of the following:
Receivables
Collected,
not yet
Remitted to
City by
Servicer
Unbilled
Receivables
Allowance
for Doubtful
Accounts
Receivables,
net
Governmental Activities:
General Fund $ 112,866 $ 101,333 $ 109,300 $ (2,317) $ 321,182
CRA Fund 413 - - - 413
Total Governmental Activities 113,279 101,333 109,300 (2,317) 321,595
Business-Type Activities:
Wastewater 61,285 303,857 296,599 (7,169) 654,572
Stormwater 13,655 48,648 44,365 (1,060) 105,608
Total Business-Type Activities 74,940 352,505 340,964 (8,229) 760,180
Totals $ 188,219 $ 435,838 $ 450,264 $ (10,546) $ 1,081,775
(6) Interfund Loans and Transfers:
The outstanding balances between funds result mainly from the time lag between the dates reimbursable
expenditures occur, when transactions are recorded in the accounting system, and when payments
between funds are made. Individual fund interfund receivables and payables for the primary government
at September 30, 2014, are comprised of the following:
Due From
Other
Funds
Due To
Other
Funds
General Fund, due from
Cape Canaveral CRA Fund $ 100,000 $ -
Cape Canaveral CRA Fund, due to
General Fund - 100,000
Total—All Funds $ 100,000 $ 100,000
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 64 -
(6) Interfund Loans and Transfers: (Continued)
The composition of interfund transfers for the year ended September 30, 2014 is as follows:
Transfers Out
General Fund:
Capital Construction Fund $ 3,059,815
Wastewater Fund 425,000
School Crossing Guard Fund
General Fund 2,973
Capital Construction Fund:
General Fund 193,051
Library Fund 193,797
Wastewater Fund
General Fund 341,158
Enterprise Capital fund 1,379,377
Stormwater Fund
Enterprise Capital Fund 264,889
5,860,060
Transfers In
General Fund:
School Crossing Guard Fund (2,973)
Capital Construction Fund (193,051)
Wastewater Fund (341,158)
Enterprise Capital Fund
Wastewater Fund (1,379,377)
Stormwater Fund (264,889)
Library Fund
Capital Construction Fund (193,797)
Capital Construction Fund
General Fund (3,059,815)
Wastewater Fund
General Fund (425,000)
$(5,860,060)
Transfers are used to (1) move revenues from the fund with collection authorization to the debt service
fund as debt service principal and interest payments become due, (2) move restricted amounts from
borrowings to the debt service funds to establish and maintain mandatory reserve and sinking fund
accounts, (3) move revenues from proprietary fund operations to the general fund for payments in lieu of
taxes, and (4) move unrestricted revenues to finance various programs that the City must account for in
other funds in accordance with budgetary authorizations, including amounts provided as matching funds
for various grant programs.
During the year, the City also incurred $1,711,029 in capital outlay expenditures in the Enterprise Capital
Fund for construction in progress, equipment, and other capital improvements, of which $1,540,002 and
$231,026 was contributed to the Wastewater Fund and Stormwater Fund, respectively.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 65 -
(7) Capital Assets:
Capital asset activity for the fiscal year ended September 30, 2014 was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Governmental activities:
Capital assets, not being depreciated:
Land $ 7,256,030 $ - $ (7,793) $ 7,248,237Construction in progress 326,464 2,919,272 (2,505,632) 740,105
Total capital assets, not being
depreciated 7,582,494 2,919,272 (2,513,425) 7,988,342
Capital assets, being depreciated:
Buildings and improvements 2,344,423 2,367,187 - 4,711,610
Machinery and equipment 2,997,202 352,496 (399,518) 2,950,180
Infrastructure 6,724,637 211,217 - 6,935,854
Total capital assets, being depreciated 12,066,262 2,930,900 (399,518) 14,597,644
Accumulated depreciation for:
Buildings and improvements (862,467) (98,826) - (961,293)
Machinery and equipment (1,534,162) (176,417) 195,030 (1,515,549)
Infrastructure (1,409,385) (279,877) - (1,689,262)
Total accumulated depreciation (3,806,014)(555,120)195,030 (4,166,104)
Total capital assets being depreciated,
net of accumulated depreciation 8,260,248 2,375,780 (204,488) 10,431,540
Governmental activities capital assets,
net $ 15,842,742 $ 5,295,052 $ (2,717,913) $ 18,419,882
Business-type activities:
Capital assets, not being depreciated:
Land $ 351,084 $ - $ - $ 351,084
Construction in progress 137,474 1,570,254 - 1,707,728
Total capital assets, not being
depreciated 488,558 1,570,254 - 2,058,812
Capital assets, being depreciated: Buildings and improvements 4,143,124 - - 4,143,124
Infrastructure 22,450,251 10,190 (10,872) 22,449,569
Machinery and equipment 1,502,513 208,241 (24,773) 1,685,981
Total capital assets, being
depreciated 28,095,888 218,431 (35,645) 28,278,674
Accumulated depreciation for −
Buildings and improvements (1,868,027) (107,321) - (1,975,348)
Infrastructure (11,120,740) (767,899) 7,758 (11,880,881)
Machinery and equipment (589,185) (99,330) 19,957 (668,558)
Total accumulated depreciation (13,577,952)(974,550)27,715 (14,524,787)
Total capital assets being depreciated,
net of accumulated depreciation 14,517,936 (756,119)(7,930) 13,753,887
Business-type activities capital assets,
net $ 15,006,494 $ 814,135 $ (7,930) $ 15,812,699
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 66 -
(7) Capital Assets: (Continued)
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $ 19,765
Public safety 178,246
Transportation 268,883
Culture and recreation 88,226
Total depreciation expense-governmental activities $ 555,120
Business-type activities:
Wastewater $ 867,181
Stormwater 107,369
Total depreciation expense-business-type activities $ 974,550
(8) Long-term Debt:
A. Revenue Bonds and Notes
Governmental Activities:
Capital Improvement Revenue Note, Series 2014
The $5,500,000 Capital Improvement Revenue Note, Series 2014 was issued in February 2014 to finance
various general government capital improvements and acquisitions including but not limited to a City
Hall project, Fire Station, Main Wastewater Treatment Plant Building Refurbishment, and other capital
improvements and to pay the cost of issuance related to the financing. The Series 2014 Note is secured by
an irrevocable first lien pledge and dedication of the pledged revenues which would consist of (1) public
service tax, (2) the City’s local government half-cent sales tax, (3) the guaranteed entitlement portion of
the state revenue sharing funds, and (4) franchise fees. The City directly collects the public service taxes,
whereas the sales tax, state revenue sharing funds, and franchise fees are collected through third parties
and subsequently remitted to the City. The note, which bears interest at 1.99%, is payable semi-annually
on February 1 and August 1 of each year until final maturity on February 1, 2024. Total principal
remaining to be paid on the note is $5,500,000.
Business-Type Activities:
State Revolving Loans
The City has applied for and received various loans under Florida’s State Revolving Fund (SRF) loan
program. These loans, granted by the State, fund various wastewater and stormwater projects.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 67 -
(8) Long-term Debt: (Continued)
The City's SRF loans outstanding at September 30, 2014 are summarized as follows:
2.92-3.17% State Revolving Fund promissory note payable; with semiannual loan
payments of $251,694 beginning January 11, 1996 through 2016; secured by the
wastewater utility revenue of the City $ 732,429
2.97% State Revolving Fund promissory note payable; with semiannual loan
payments of $72,998 beginning October 15, 1996 through 2017; secured by the
wastewater utility revenue of the City 349,276
1.69% State Revolving Fund promissory note payable; with semiannual loan
payments of $16,971 beginning March 15, 2016 through 2036; secured by the net
wastewater and stormwater utility revenue of the City per Section 4 of Ordinance
01-2013 341,523
Total State Revolving Fund loans 1,423,228
Less: current maturities 621,177
Total business-type activities long-term debt $ 802,051
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 68 -
(8) Long-term Debt: (Continued)
Annual debt service requirements to maturity for the City’s revenue bonds and notes are as follows:
Year Ending
Governmental
Activities Business-Type Activities
September 30, Principal Interest Principal Interest Total
2015 $ 509,000 $ 104,385 $ 621,177 $ 28,206 $ 1,262,768
2016 511,000 94,236 405,269 26,362 1,036,867
2017 521,000 83,968 100,502 6,438 711,908
2018 532,000 73,491 29,057 4,885 639,433
2019 543,000 62,795 29,550 4,392 639,737
2020-2024 2,884,000 145,770 155,448 14,264 3,199,482
2025-2029 - - 82,225 2,087 84,312
Totals $ 5,500,000 $ 564,645 $ 1,423,228 $ 86,634 $ 7,574,507
B. Change in Long-term Liabilities
Long-term liability activity for the year ended September 30, 2014, was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Due Within
One Year
Governmental Activities
Series 2014 Note $ - $ 5,500,000 $ - $ 5,500,000 $ 509,000
Compensated absences payable 154,653 128,542 (54,951) 228,244 182,595
Net OPEB obligation 19,138 5,151 - 24,289 -
Total Governmental Activities $ 173,791 $ 5,633,693 $ (54,951)$ 5,752,533 $ 691,595
Business-Type Activities
State revolving loans $ 2,020,187 $ 5,676 $ (602,635) $ 1,423,228 $ 621,177
Compensated absences payable 71,622 75,901 (34,390) 113,133 90,507
Net OPEB obligation 13,862 2,849 - 16,711 -
Total Business-Type Activities $ 2,105,671 $ 84,426 $ (637,025)$ 1,553,072 $ 711,684
Compensated absences and the net OPEB obligation are typically paid from the General Fund,
Wastewater Fund, and the Stormwater Fund. With respect to governmental activities, compensated
absences and the net OPEB obligation are primarily liquidated from the General Fund. The liability for
compensated absences and the net OPEB obligation in the business-type activities is liquidated in the
fund in which the liability was incurred.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 69 -
(9) Employees' Retirement Plan:
Established with Resolution No. 2006-13 of the City Council, the City contributes to a defined
contribution plan which is administered by the Florida League of Cities, P. O. Box 1757, Tallahassee, FL
32302, and features participant-directed investments. The City established the plan for all regular full time
and regular part time employees with one year of employment and 1,000 hours of service each year. All
qualifying employees at least 18 years of age participate in the plan on the date of employment.
Retirement benefits are available after 5 years of service. Employer contributions to the plan are 7% of
the employee gross wages and the City allows for a matching contribution of up to 3% of employee’s
basic compensation. Forfeitures are used to reduce the City’s current period contribution requirement.
For the year ended September 30, 2014, employer and matching contributions to the defined contribution
plan were $110,609 and $40,134, respectively. The Plan had 30 participating employees as of
September 30, 2014.
(10) Other Post-Employment Benefits (OPEB):
Plan Description⎯Effective October 1, 2009, the City implemented GASB Statement No. 45,
Accounting and Reporting for Post-Employment Benefits Other Than Pensions (OPEB), for certain post-
employment healthcare benefits provided by the City. The requirements of this statement were
implemented prospectively, with the actuarially determined liability of $56,000 at October 1, 2009, the
date of transition, amortized over 10 years. Accordingly, for financial reporting purposes, no liability is
reported for the post-employment healthcare benefit liability at the date of transition.
The OPEB Plan is a single-employer benefit plan administered by the City. Retirees are charged what the
insurance company charges for the type of coverages elected, however, the premiums charged by the
insurance company are based on a blending of the experience among younger active employees and older
retired employees. The older retirees actually have a higher cost which means the City is subsidizing the
cost of the retiree coverage because it pays all or a significant portion of the premium on behalf of the
active employee. GASB No. 45 calls this the “implicit rate subsidy.”
Retirees and their dependents are permitted to remain covered under the City’s respective health care
plans as long as they pay a full premium applicable to the coverages elected. This conforms to the
minimum required of Florida governmental employers per Chapter 112.08 of Florida Statutes. The OPEB
Plan does not issue a stand-alone report.
At July 1, 2013, the date of the latest actuarial valuation, plan participation consisted of:
Active Employees 48
Inactive Employees 0
48
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 70 -
(10) Other Post-Employment Benefits (OPEB): (Continued)
Funding Policy⎯For the OPEB Plan, contribution requirements of the City are established and may be
amended through action from the City Council. Currently, the City’s OPEB Benefits are unfunded. The
required contributions are based on pay-as-you-go financing requirements. There is no separate Trust
fund or equivalent into which the City would make contributions to advance-fund the obligation.
Therefore, ultimate subsidies which are provided over time are financed directly by general assets of the
City, which are invested in very short-term fixed income instruments according to its current investment
policy. The interest rate used to calculate the present value and costs of OPEB must be the long-range
expected return on such short-term fixed income instruments. The City selected an interest discount of
4.00% for this purpose.
Annual OPEB Cost and Net OPEB Obligation⎯The City’s annual other post-employment benefit
(OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount
actuarially determined in accordance with the parameters of GASB No. 45. The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial accrued liabilities over a period not to exceed thirty years. The unfunded actuarial
accrued liability represents an actuarial measurement of the obligation that has accrued so far based on the
promise that has been made to current retirees and to current employees. Since the City’s OPEB is
currently unfunded, the offset to that expense comes from actual subsidies paid on behalf of the current
retirees and their dependents for the current year. This offset is called the Employer Contribution and
equals the total age-adjusted costs paid by the City for coverage for the retirees and their dependents for
the year (net of the retiree’s own payments for the year). The components of the annual OPEB cost for the
current year, the total contributions and the changes in the net obligation are as follows:
2014
Fiscal Year
Valuation as
of 7/1/2013
Normal Cost (service cost for one year) $ 8,000
Amortization of Unfunded Actuarial Accrued Liability (UAAL) 6,000
Interest on Normal Cost and Amortization -
Annual Required Contribution (ARC) 14,000
Interest on Net OPEB Obligation 1,000
Adjustment to ARC (4,000)
Annual OPEB Cost (Expense) 11,000
Less: Employer Contributions Made (3,000)
Increase in Net OPEB Obligation 8,000
Net OPEB Obligation at beginning of year 33,000
Net OPEB Obligation at end of year $ 41,000
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
- 71 -
(10) Other Post-Employment Benefits (OPEB): (Continued)
The City’s annual OPEB cost (expense) was $11,000 for the year ended September 30, 2014. The City’s
annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 with no applicable preceding years were as follows:
Year Ended September 30,
Annual
OPEB Cost City Contributions
Percentage of
Annual OPEB Cost Contributed
Net
OPEB Obligation
2014 $ 11,000 $ 3,000 27% $ 41,000
2013 $ 11,000 $ 3,000 27% $ 33,0002012 $ 11,000 $ 4,000 36% $ 25,000
2011 $ 10,000 $ 4,000 40% $ 18,000
2010 $ 15,000 $ 3,000 20% $ 12,000
In the Statement of Net Position, the City reports a Net OPEB Obligation of $24,289 in governmental activities and $16,711 in business-type activities.
Funding Status and Funding Progress⎯The funding status of the plan as of July 1, 2013, the most
recent actuarial valuation date, was as follows:
2014
Fiscal Year Valuation as
of 7/1/2013
Actuarial Accrued Liability (AAL) $ 45,000
Actuarial Value of Plan Assets N/A Unfunded Actuarial Accrued Liability (UAAL) 45,000
Funded Ratio (Actuarial Value of Plan Assets/AAL) N/A
Covered Payroll (Active Plan Members) $ 2,029,000
UAAL as a Percentage of Covered Payroll 2.2%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, termination, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and annual required contributions of the City are
subject to continual revision and 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 multi-year trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial Methods and Assumptions⎯Projections of benefits for financial reporting purposes are based
on the substantive plan (the plan as understood by the City 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 City and plan members to that point. The projections do not explicitly incorporate the potential effects of legal or contractual funding limitations. The actuarial methods and assumptions used
include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the
actuarial value of assets, consistent with the long-term perspective of the calculations.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
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(10) Other Post-Employment Benefits (OPEB): (Continued)
The projected unit cost method is used to determine the Plan’s liabilities and costs. For each participant,
benefits earned to date are calculated using projected benefits based on accrual to the date of expected
retirement and the participant’s benefit service, when eligible. Costs are attributed from the date of hire to
the date first eligible for full benefits. The individual’s service cost is the actuarial present value of the
benefit earned at the end of the plan year less the actuarial present value of benefits earned at the
beginning of the plan year. The individual’s actuarial accrued liability is the actuarial present value of
benefits earned as of the beginning of the plan year.
The following is a summary of the significant actuarial methods and assumptions:
Actuarial Valuation:
Frequency Bi-Annual
Latest Date 7/1/2013
Cost Method Projected Unit Credit
UAAL Amortization:
Method Level Dollar Payment
Open/Closed Open
Remaining Amortization Period 10 Years
Asset Valuation N/A
Actuarial Assumptions:
Investment Earnings 4.00%
Salary Increases 2.50%
Inflation Rate 2.75%
Healthcare Inflation Rate 10.00% Initial
5.00% Ultimate
(11) Legal Matters:
The City is engaged in routine litigation incidental to the conduct of its business and municipal affairs. In
the opinion of its Counsel, no other legal proceedings are pending against them, not covered by insurance,
which would inhibit the City's ability to perform its operations or materially affect its financial condition.
(12) Commitments and Contingencies:
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state governments. Any disallowed claims, including amounts
already collected, may constitute a liability of the applicable fund(s). The amount, if any, of expenditures
from current or prior years which may be disallowed by the grantor cannot be determined at this time
although the City expects such amounts, if any, to be immaterial.
NOTES TO FINANCIAL STATEMENTS
CITY OF CAPE CANAVERAL, FLORIDA
SEPTEMBER 30, 2014
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(13) Encumbrances:
Encumbrances are reported in the fund balance classification which is going to fund the costs. No funds
had any encumbrances outstanding at September 30, 2014.
(14) Risk Management:
The City of Cape Canaveral is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters, all of which are,
in the opinion of management, satisfactorily insured by general liability insurance. Commercial insurance
policies are also obtained for all other risks of loss, including workers’ compensation and employee health
and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance
coverage in any of the past three years.
(15) Restatement of Net Position:
In March 2012, the Government Accounting Standards Board (GASB) issued GASB Statement No. 65,
Items Previously Reported as Assets and Liabilities. GASB 65 clarifies the appropriate reporting of
deferred outflows of resources and deferred inflows of resources to ensure consistency in financial
reporting. GASB Concepts Statement (CON) No. 4, Elements of Financial Statements, specifies that
recognition of deferred outflows and deferred inflows should be limited to those instances specifically
identified in authoritative GASB pronouncements. Consequently, guidance was needed to determine
which balances being reported as assets and liabilities should actually be reported as deferred outflows of
resources or deferred inflows of resources, according to the definitions in CON 4. Based on those
definitions, GASB 65 reclassifies certain items currently being reported as assets and liabilities as
deferred outflows of resources and deferred inflows of resources. In addition, GASB 65 recognizes
certain items currently being reported as assets and liabilities as outflows of resources and inflows of
resources. The implementation of GASB 65 resulted in the removal of unamortized bond issuance costs
as of September 30, 2013 and resulted in the reduction of beginning unrestricted net position in the
government-wide statement of net assets by the same amount. The effect of the restatement on the
impacted reporting units beginning net position is as follows:
Wastewater
Business-Type
Activities
Balance, 9/30/2013 $ 14,146,713 $ 16,620,820
Less: Bond issuance costs,
net, 9/30/2013
(13,159) (13,159)
Restated balance, 9/30/2013 $ 14,133,554 $ 16,607,661
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Required Supplementary Information
ActuarialAccrued LiabilityActuarial(AAL) Unfunded UAAL as a ActuarialValue of Frozen AAL Funded Covered Percentage ofValuation AssetsEntry Age(UAAL) Ratio PayrollCovered PayrollDate (a) (b) (b-a) (a / b) (c) ((b-a) / c)7/1/2013 -$ 45,000$ 45,000$ 0.00% 2,029,000$ 2.2%11/1/2011 -$ 46,000$ 46,000$ 0.00% 2,031,000$ 2.3%10/1/2008 -$ 56,000$ 56,000$ 0.00% 2,087,000$ 2.7%Year EndedAnnual RequiredActual PercentageContribution as aSeptember 30, Contributions Contributions ContributedPercentage of Payroll2014 14,000$ 3,000$ 21.43% 0.15%2013 13,000$ 3,000$ 23.08% 0.14%2012 12,000$ 2,000$ 16.67% 0.10%2011 11,000$ 1,000$ 9.09% 0.05%(1) For information regarding contribution percentage rates, assumptions, amortization method, etc. see Note 1(2) This data is reported for the three most recent actual valuations, as only three such valuations have been performedSchedule of Employer ContributionsCITY OF CAPE CANAVERAL, FLORIDASCHEDULE OF FUNDING PROGRESS OTHER POST-EMPLOYMENT BENEFITS SEPTEMBER 30, 2014AND SCHEDULE OF EMPLOYER CONTRIBUTIONSSchedule of Funding Progress- 76 -
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Combining and Individual
Fund Statements and Schedules
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Special Revenue Funds
Special Revenue Funds are used to account for specific taxes or other earmarked revenue sources that are
legally restricted to expenditure for particular purposes.
Police Education
This Fund accounts for training costs for police. Revenues are provided from court fees collected from
Cape Canaveral proceedings.
Fire Protection
This Fund accounts for fire protection costs. Revenues are provided from impact fees assessed on new
residential and commercial construction over two stories high.
School Crossing Guard
This Fund accounts for the cost of a school crossing guard. Revenues are derived from a $10 surcharge on
parking citations issued within the City.
Library
This Fund accounts for revenues levied within the property tax millage for maintenance of the public
library.
Special Law Enforcement Trust
This Fund accounts for the receipt and disbursement of confiscated contraband property proceeds from
certain criminal cases pursuant to Florida Statutes.
Original Final Actual
Revenues
Taxes:
Intergovernmental 736,038$ -$ -$ -$
Licenses and permits 874 - - -
Investment earnings 6,006 7,768 7,741 (27)
Total revenues 742,918 7,768 7,741 (27)
Expenditures
Current:
Transportation - 557,329 - 557,329
Capital outlay 7,278,640 2,878,489 2,912,945 (34,456)
Total expenditures 7,278,640 3,435,818 2,912,945 522,873
Excess (deficiency) of revenues
over expenditures (6,535,722) (3,428,050) (2,905,204) 522,846
Other financing sources
Transfers in 981,928 3,059,815 3,059,815 -
Transfers out (34,700) (386,848) (386,848) -
Issuance of long term debt 468,300 - - -
Total other financing sources 1,415,528 2,672,967 2,672,967 -
Net change in fund balances (5,120,194) (755,083) (232,237) 522,846
Fund balances, beginning of year 724,355 724,355 724,355 -
Fund balances, end of year (4,395,839)$ (30,728)$ 492,118$ 522,846$
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
CAPITAL CONSTRUCTION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Budgeted Amounts Variance
Positive
(Negative)
The accompanying notes to financial statements
are an integral part of this statement.
- 80 -
Original Final Actual
Revenues
Taxes:
Property -$ -$ -$ -$
Local option motor fuel - - - -
Utility and franchise - - - -
Intergovernmental - - - -
Licenses and permits - - - -
Charges for services - - - -
Fines and forfeitures - - - -
Investment earnings - - - -
Contributions and donations - - - -
Miscellaneous - - -
Total revenues - - - -
Expenditures
Current:
General government - - - -
Public safety - - - -
Transportation - - - -
Physical environment - - - -
Culture/recreation - - - -
Capital outlay 5,854,686 1,816,306 1,771,029 45,277
Total expenditures 5,854,686 1,816,306 1,771,029 45,277
Excess (deficiency) of revenues
over expenditures (5,854,686) (1,816,306) (1,771,029) 45,277
Other financing sources
Transfers in 1,753,486 1,655,678 1,644,266 (11,412)
Transfers out - - - -
Issuance of long term debt 4,101,200 - - -
Total other financing sources 5,854,686 1,655,678 1,644,266 (11,412)
Net change in fund balances - (160,628) (126,763) 33,865
Fund balances, beginning of year - - - -
Fund balances, end of year -$ (160,628)$ (126,763)$ 33,865$
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
ENTERPRISE CAPITAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Budgeted Amounts Variance
Positive
(Negative)
The accompanying notes to financial statements
are an integral part of this statement.
- 81 -
Police Fire School Special LawEducation Protection Crossing Guard Library Enforcement Trust TotalAssetsEquity in pooled cash and investments17,159$ 22,046$ 3,311$ 330,216$ 6,574$ 379,306$ Due from other governments- - - 2 - 2 Total Assets17,159$ 22,046$ 3,311$ 330,218$ 6,574$ 379,308$ Liabilities and Fund BalancesAccounts payable and accrued liabilities-$ -$ 620$ 4,410$ -$ 5,030$ Total liabilities - - 620 4,410 - 5,030 Fund balances:Restricted for:Public safety17,159 22,046 2,691 6,574 48,470 Culture/recreation- - - 325,808 - 325,808 Capital expansion- - - - - - Total fund balances 17,159 22,046 2,691 325,808 6,574 374,278 Total Liabilities and Fund Balances17,159$ 22,046$ 3,311$ 330,218$ 6,574$ 379,308$ Special Revenue FundsCITY OF CAPE CANAVERAL, FLORIDACOMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSSEPTEMBER 30, 2014- 82 -
Police Fire School Special LawEducation Protection Crossing Guard Library Enforcement Trust TotalRevenuesProperty Taxes-$ -$ -$ 58,811$ -$ 58,811$ Fines and forfeitures798 - 2,525 - - 3,323 Investment earnings (losses)137 (74) 41 (1,701) (116) (1,713) Total revenues 935 (74) 2,566 57,110 (116) 60,421 ExpendituresCurrent:Public safety- - - - 2,972 2,972 Culture/recreation- - - 29,849 - 29,849 Capital outlay- - - 32,801 - 32,801 Total expenditures - - - 62,650 2,972 65,622 Excess (deficiency) of revenuesover expenditures935 (74) 2,566 (5,540) (3,088) (5,201) Other financing sources (uses)Transfers in- - - 193,797 - 193,797 Transfers out- - (2,973) - - (2,973) Total other financing sources (uses)- - (2,973) 193,797 - 190,824 Net change in fund balances935 (74) (407) 188,257 (3,088) 185,623 Fund balances, beginning of year16,224 22,120 3,098 137,551 9,662 188,655 Fund balances, end of year17,159$ 22,046$ 2,691$ 325,808$ 6,574$ 374,278$ FOR THE YEAR ENDED SEPTEMBER 30, 2014Special Revenue FundsCITY OF CAPE CANAVERAL, FLORIDACOMBINING STATEMENT OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDS- 83 -
Original Final Actual Original Final Actual
Revenues
Property Taxes -$ -$ -$ -$ -$ -$ -$ -$
Intergovernmental - - - - - - - -
Licenses and permits - - - - 1,000 - - - Fines and forfeitures 1,050 848 798 (50) - - - -
Investment earnings (losses) 200 138 137 (1) 475 332 (74) (406)
Total revenues 1,250 986 935 (51) 1,475 332 (74) (406)
Expenditures
Current:
Public safety 1,250 986 - 986 1,475 218 - 218
Culture/recreation - - - - - - - -
Capital outlay - - - - - - - - Total expenditures 1,250 986 - 986 1,475 218 - 218
Excess (deficiency) of revenues
over (under) expenditures - - 935 935 - 114 (74) (188)
Other financing sources (uses)
Transfers in - - - - - - - - Transfers out - - - - - - - -
Total other financing
sources (uses) - - - - - - - -
Net change in fund balances - - 935 935 - 114 (74) (188)
Fund balances, beginning of year 16,224 16,224 16,224 - 22,120 22,120 22,120 -
Fund balances, end of year 16,224$ 16,224$ 17,159$ 935$ 22,120$ 22,234$ 22,046$ (188)$
Special Revenue Funds
Variance
Positive
(Negative)
Variance
Positive
(Negative)
Budgeted Amounts
Police Education
Budgeted Amounts
Fire Protection
CITY OF CAPE CANAVERAL, FLORIDASCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2014
- 84 -
Original Final Actual Original Final Actual
-$ -$ -$ -$ 57,738$ 58,811$ 58,811$ -$
- - - - 410 - - -
- - - - - - - - 1,400 2,775 2,525 (250) - - - -
58 42 41 (1) 4,560 4,645 (1,701) (6,346)
1,458 2,817 2,566 (251) 62,708 63,456 57,110 (6,346)
1,458 - - - - - - -
- - - - 59,898 226,530 29,849 196,681
- - - - 37,510 28,873 32,801 (3,928) 1,458 - - - 97,408 255,403 62,650 192,753
- 2,817 2,566 (251) (34,700) (191,947) (5,540) 186,407
- - - - 34,700 193,797 193,797 - (3,200) (2,973) (2,973) - - - - -
(3,200) (2,973) (2,973) - 34,700 193,797 193,797 -
(3,200) (156) (407) (251) - 1,850 188,257 186,407
3,098 3,098 3,098 - 137,551 137,551 137,551 -
(102)$ 2,942$ 2,691$ (251)$ 137,551$ 139,401$ 325,808$ 186,407$
School Crossing Guard
Budgeted Amounts
Variance
Positive
(Negative)
Budgeted Amounts
Variance
Positive
(Negative)
Library
SEPTEMBER 30, 2014
CITY OF CAPE CANAVERAL, FLORIDASCHEDULE OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCES - BUDGET TO ACTUAL
NONMAJOR GOVERNMENTAL FUNDS
- 85 -
Original Final Actual
Revenues
Property Taxes -$ -$ -$ -$
Intergovernmental - - - -
Licenses and permits - - - -
Fines and forfeitures - - - -
Investment earnings (losses) 195 258 (116) (374)
Total revenues 195 258 (116) (374)
Expenditures
Current:
Public safety 3,168 2,973 2,972 1
Culture/recreation - - - -
Capital outlay - - - -
Total expenditures 3,168 2,973 2,972 1
Excess (deficiency) of revenues
over expenditures (2,973) (2,715) (3,088) (373)
Other financing sources (uses)
Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balances (2,973) (2,715) (3,088) (373)
Fund balances, beginning of year, 9,662 9,662 9,662 -
Fund balances, end of year 6,689$ 6,947$ 6,574$ (373)$
Budgeted Amounts
Variance
Positive
(Negative)
Special Law Enforcement Trust
Special Revenue Funds (Continued)
CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL (Continued)
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2014
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Statistical Section
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- 89 -
Statistical Section
This part of the City of Cape Canaveral, Florida’s Comprehensive Annual Financial Report
presents detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the City’s
overall financial health.
Contents Page
Financial Trends 91
These schedules contain trend information to help the reader understand how the City’s
financial performance and well-being have changed over time.
Revenue Capacity 98
These schedules contain information to help the reader assess the factors affecting the
City’s ability to generate its property and sales taxes.
Debt Capacity 103
These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt in
the future.
Demographic and Economic Information 106
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information 108
These schedules contain information about the City’s operations and resources to help the
reader understand how the City’s financial information relates to the services the City
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Report for the relevant fiscal year.
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City of Cape Canaveral, FloridaTable 1Net Assets by ComponentLast Ten Fiscal Years(accrual basis of accounting)20142013 20122011 2010 2009 2008 2007 2006 2005Governmental activities:Invested in capital assets, net of related debt12,919,882$ 15,842,742$ 16,153,413$ 16,192,759$ 14,305,431$ 13,761,994$ 13,974,197$ 13,666,914$ 9,787,271$ 9,587,117$ Restricted1,296,710 1,162,204 1,001,741 1,243,408 3,902,039 1,658,390 1,484,290 1,311,278 1,207,600 892,248 Unrestricted8,219,219 5,835,996 5,800,091 5,802,065 3,841,426 6,201,532 5,448,970 4,988,488 6,286,692 5,288,088 Total governmental activities net assets22,435,811 22,840,942 22,955,245 23,238,232 22,048,896 21,621,916 20,907,457 19,966,680 17,281,563 15,767,453 Business-type activities:Invested in capital assets, net of related debt14,389,471 12,986,307 12,774,301 11,792,700 11,835,287 11,907,091 11,794,443 10,960,351 9,973,299 9,839,270 Restricted423,939 396,648 428,741 453,489 485,322 500,875 1,111,214 1,561,737 1,746,186 844,152 Unrestricted2,840,010 3,237,865 2,951,894 3,335,775 2,806,180 2,656,369 1,743,418 2,304,895 2,815,412 2,564,618 Total business-type activities net assets17,653,420 16,620,820 16,154,936 15,581,964 15,126,789 15,064,335 14,649,075 14,826,983 14,534,897 13,248,040 Primary government:Invested in capital assets, net of related debt27,309,353 28,829,049 28,927,714 27,985,459 26,140,718 25,669,085 25,768,640 24,627,265 19,760,570 19,426,387 Restricted1,720,649 1,333,852 1,430,482 1,696,897 4,387,361 2,159,265 2,595,504 2,873,015 2,953,786 1,736,400 Unrestricted11,059,229 9,298,861 8,751,985 9,137,840 6,647,606 8,857,901 7,192,388 7,293,383 9,102,104 7,852,706 Total primary government net assets40,089,231$ 39,461,762$ 39,110,181$ 38,820,196$ 37,175,685$ 36,686,251$ 35,556,532$ 34,793,663$ 31,816,460$ 29,015,493$ Fiscal Year Fiscal Year- 91 -
City of Cape Canaveral, FloridaChanges in Net AssetsLast Ten Fiscal Years(accrual basis of accounting)201420132012 2011 2010 2009 2008 2007 2006 2005Expenses:Governmental activitiesGeneral government1,196,010$ 1,176,016$ 1,113,604$ 691,932$ 674,753$ 734,535$ 667,052$ 932,270$ 900,206$ 830,987$ Public safety4,988,955 4,786,742 4,669,217 4,616,255 4,672,287 4,847,105 4,760,309 4,365,901 4,278,518 3,425,847 Transportation976,126 989,959 1,068,023 1,039,001 1,027,016 1,051,014 1,040,708 1,091,223 381,879 996,331 Physical environment971,376 969,778 879,353 856,790 900,255 884,689 873,470 865,088 854,557 801,233 Culture/recreation721,749 568,356 585,452 467,498 388,430 434,924 405,769 456,429 384,994 340,688 Unallocated depreciation- - - - - - - - 11,470 11,741 Interest on long-term debt47,124 - - - - - 1,760 3,425 5,018 6,536 Total governmental activities expenses8,901,340 8,490,851 8,315,649 7,671,476 7,662,741 7,952,267 7,749,068 7,714,336 6,816,642 6,413,363 Business-type activities:Wastewater utility2,867,552 2,946,743 3,015,636 2,934,729 2,911,651 3,013,820 3,130,038 2,988,110 2,765,233 2,648,827 Stormwater utility463,618 427,634 336,503 279,213 231,376 200,710 179,995 149,494 139,646 77,341 Total business-type activities expenses3,331,170 3,374,377 3,352,139 3,213,942 3,143,027 3,214,530 3,310,033 3,137,604 2,904,879 2,726,168 Total primary-government expenses 12,232,510$ 11,865,228$ 11,667,788$ 10,885,418 10,805,768 11,166,797 11,059,101 10,851,940 9,721,521 9,139,531 Program revenueGovernmental activities:Charges for Services:General government22,890$ 17,376$ 3,757$ 105 931 186 520 2,120 1,289,542 284,787 Public safety509,007 528,502 368,253 324,504 287,521 278,510 264,618 506,131 108,247 643,070 Physical environment983,463 978,586 914,873 890,489 880,494 897,117 891,088 917,434 296,663 872,050 Culture/recreation85,832 88,413 100,305 75,880 73,725 56,219 45,677 49,039 41,615 109,036 Operating Grants and ContributionsGeneral government- - - - - 28,803 - 1,439 - - Public safety- - - - 26,359 37,656 38,129 37,631 10,221 21,593 Transportation283,621 319,888 - - - - - - - - Culture/recreation- 986 8,922 8,060 - - - - - - Capital Grants and ContributionsGeneral government- 2,804 211 - - - - - - - Public safety- 7,635 376 - - - - - - - Transportation293,678 92,420 2,800 490,255 - - - - - - Culture/recreation- 695 463 - - 6,500 106,000 25,300 - 87,200 Total governmental activities program revenues 2,178,491 2,037,305 1,399,960 1,789,293 1,269,030 1,304,991 1,346,032 1,539,094 1,746,288 2,017,736 Business-type activities:Charges for services:Wastewater utility3,569,928 3,363,595 3,601,830 3,376,100 3,191,340 3,028,493 2,782,834 2,938,088 3,727,507 3,151,095 Stormwater utility579,494 577,141 400,035 344,596 345,961 347,171 349,243 348,145 358,764 319,095 Operating grants and contributionsSewer utility- - - - - 6,032 - - - - Stormwater utility- - - - - - - - - 246,772 Capital grants and contributionsSewer utility- - - - - 24,662 33,184 - 75,000 - Stormwater utility- - - - 200 267,189 - 79,972 7,575 - Total business-type activities program revenues4,149,422 3,940,736 4,001,865 3,720,696 3,537,501 3,673,547 3,165,261 3,366,205 4,168,846 3,716,962 Total primary government program revenues 6,327,913$ 5,978,041$ 5,401,825$ 5,509,989 4,806,531 4,978,538 4,511,293 4,905,299 5,915,134 5,734,698 Table 2Fiscal Year Fiscal Year- 92 -
(Continued)City of Cape Canaveral, FloridaChanges in Net AssetsLast Ten Fiscal Years(accrual basis of accounting)Fiscal Year Fiscal Year201420132012 2011 2010 2009 2008 2007 2006 2005Net (expense) revenueGovernmental activities(6,722,849)$ (6,453,546)$ (6,915,689)$ (5,882,183)$ (6,393,711)$ (6,647,276)$ (6,403,036)$ (6,175,242)$ (5,070,354)$ (4,395,627)$ Business-type activities818,252 566,359 649,726 506,754 394,474 459,017 (144,772) 228,601 1,263,967 990,794 Total primary government net (expense) revenue (5,904,597) (5,887,187) (6,265,963) (5,375,429) (5,999,237) (6,188,259) (6,547,808) (5,946,641) (3,806,387) (3,404,833) Governmental activities:Property taxes3,244,566 3,225,873 3,246,835 3,701,683 3,301,598 3,988,772 3,938,006 4,126,664 2,993,064 2,557,357 Local option motor fuel taxes- - 343,960 270,065 286,961 275,700 250,773 256,561 252,083 224,376 Utility and franchise taxes2,302,715 2,064,043 1,990,307 2,072,864 2,055,467 2,038,270 2,005,460 1,989,636 1,959,958 1,822,758 Unrestricted intergovernmental revenues794,366 733,430 696,767 662,774 691,234 698,031 771,490 816,424 862,176 1,127,304 Investment income65,002 118,418 177,045 189,713 243,926 202,793 216,606 414,755 324,014 139,048 Gain on disposition of capital assets- - - - - - - - - - Contributions and donations- - - - 179,694 4,665 885 32,745 - - Miscellaneous revenues121,673 72,479 52,788 49,420 25,019 28,504 35,593 88,565 68,169 30,650 Transfers(210,604) 125,000 125,000 125,000 134,471 125,000 125,000 125,000 125,000 100,000 Total governmental activities6,317,718 6,339,243 6,632,702 7,071,519 6,918,370 7,361,735 7,343,813 7,850,350 6,584,464 6,001,493 Business-type activities:Investment income16,903 24,525 47,254 54,761 70,127 40,326 91,864 188,485 144,285 66,841 Unrestricted intergovernmental revenues- - - - - 40,917 - - 3,604 5,204 Miscellaneous revenues- - 992 18,660 - - - - - - Transfers210,604 (125,000) (125,000) (125,000) (134,471) (125,000) (125,000) (125,000) (125,000) (100,000) Total business-type activities227,507 (100,475) (76,754) (51,579) (64,344) (43,757) (33,136) 63,485 22,889 (27,955) Total primary government 6,545,225 6,238,768 6,555,948 7,019,940 6,854,026 7,317,978 7,310,677 7,913,835 6,607,353 5,973,538 Change in net assets:Government activities(405,131) (114,303) (282,987) 1,189,336 524,659 714,459 940,777 1,675,108 1,514,110 1,605,866 Business-type activities1,045,759 465,884 572,972 455,175 330,130 415,260 (177,908) 292,086 1,286,856 962,839 Total primary government change in net assets640,628$ 351,581$ 289,985$ 1,644,511$ 854,789$ 1,129,719$ 762,869$ 1,967,194$ 2,800,966$ 2,568,705$ Table 2General revenues and other changes in net assets- 93 -
City of Cape Canaveral, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2014 2013 2012 2011
General fund
Reserved -$ -$ -$ -$
Unreserved - - - -
Nonspendable 124,668 12,394 11,192 376,436
Restricted 430,314 249,194 227,475 47,645
Committed 5,024,941 2,264,838 - -
Assigned 485,543 428,837 2,901,197 2,731,899
Unassigned (deficit)3,026,331 3,285,868 3,035,218 2,831,584
Total general fund 9,091,797$ 6,241,131$ 6,175,082$ 5,987,564$
All other governmental funds:
Reserved -$ -$ -$ -$
Unreserved, reported in:
Special revenue funds - - - -
Capital projects fund - - - -
Nonspendable - - - 6,247
Restricted 866,396 913,010 774,266 1,189,516
Committed - - 4,119 7,762
Assigned - - - -
Unassigned (deficit)(189,731) - - -
Total all other governmental funds 676,665$ 913,010$ 778,385$ 1,203,525$
Note: Implementation of GASB 54 in 2011 has changed fund balance designations.
Fiscal Year
- 94 -
Table 3
2010 2009 2008 2007 2006 2005
1,319,729$ 49,172$ 365,929$ 351,716$ 383,053$ 284,628$
5,051,617 6,306,358 5,123,269 4,757,047 6,017,522 5,108,242
6,371,346$ 6,355,530$ 5,489,198$ 5,108,763$ 6,400,575$ 5,392,870$
229,488$ 21,362$ 19,896$ 12,915$ -$ -$
517,503 855,695 702,131 497,486 421,000 393,540
780,229 781,333 762,263 800,877 786,600 498,708
1,527,220$ 1,658,390$ 1,484,290$ 1,311,278$ 1,207,600$ 892,248$
Fiscal Year
- 95 -
City of Cape Canaveral, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2014 2013 2012 2011 2010Revenues:
Property Taxes 3,244,566$ 3,225,873$ 3,246,835$ 3,701,683$ 3,301,598$
Local option fuel taxes 283,621 319,888 343,960 270,065 286,961
Utility and franchise taxes 2,242,170 2,005,288 1,926,356 2,001,431 2,055,467
Intergovernmental 1,237,160 968,271 840,488 1,207,232 717,593
Licenses and permits 214,674 240,605 187,851 174,371 184,938
Charges for services and impact fees 1,178,777 1,177,491 1,052,443 1,004,528 987,925
Fines and forfeitures 84,173 68,477 32,810 43,743 69,808
Investment earnings 65,002 118,418 177,045 189,714 243,926
Contributions and donations - 2,286 11,722 67,578 178,321
Miscellaneous 174,520 107,101 88,152 65,364 26,387
Total revenues 8,724,663 8,233,698 7,907,662 8,725,709 8,052,924
Expenditures:
Current:
General government 1,137,376 1,158,745 1,075,806 661,104 662,651
Public safety 4,686,563 4,536,967 4,443,899 4,457,143 4,494,953
Transportation 708,679 650,836 731,492 881,311 869,194
Physical environment 971,376 958,346 886,445 855,189 827,054
Culture/recreation 629,639 505,509 505,436 394,860 381,838
Capital outlay 5,089,128 386,968 741,895 2,318,682 959,909
Debt service:
Principal - - - - -
Interest 47,124 - - - -
Total expenditures 13,269,885 8,197,371 8,384,973 9,568,289 8,195,599
Excess of revenues over (under)
expenditures (4,545,222) 36,327 (477,311) (842,580) (142,675)
Other financing sources (uses):
Proceeds from sale of assets 99,119 39,347 114,689 10,103 -
Capital lease - - - - -
Transfers In 5,435,060 353,120 125,000 125,000 125,000
Transfers Out (3,874,636) (228,120) - - -
Issuance of long term debt 5,500,000
Total other financing sources (uses) 7,159,543 164,347 239,689 135,103 125,000
Net change in fund balances 2,614,321 200,674 (237,622) (707,477) (17,675)
0.58%0.00% 0.00% 0.00% 0.00%
Debt Service as a Percentage of Noncapital
Expenditures
Fiscal Year
- 96 -
Table 4
2009 2008 2007 2006 2005
3,988,772$ 3,938,006$ 4,126,664$ 2,992,452$ 2,557,357$
275,700 250,773 256,561 252,083 224,376
2,038,270 2,005,460 1,989,636 1,959,958 1,822,758
876,990 809,619 880,794 970,483 1,442,176
169,165 186,704 313,322 614,945 601,447
988,282 978,083 1,003,219 998,000 1,072,131
74,585 37,116 174,672 24,978 29,286
202,793 216,606 414,755 324,682 139,048
4,665 885 200,065 - -
28,504 35,593 89,510 68,171 39,197
8,647,726 8,458,845 9,449,198 8,205,752 7,927,776
712,862 640,727 895,652 774,186 797,537
4,579,807 4,554,969 4,164,897 3,532,563 3,237,073
885,181 894,060 989,750 848,026 890,973
872,318 870,223 865,088 841,246 787,540
365,351 346,513 400,186 332,185 291,206
319,875 686,504 3,409,357 644,437 610,919
- 35,649 33,977 32,384 30,866
- 1,753 3,425 5,018 6,536
7,735,394 8,030,398 10,762,332 7,010,045 6,652,650
912,332 428,447 (1,313,134) 1,195,707 1,275,126
3,100 - - 2,350 -
- - - - -
125,000 125,000 125,000 172,007 130,804
- - - (47,007) (30,804)
128,100 125,000 125,000 127,350 100,000
1,040,432 553,447 (1,188,134) 1,323,057 1,375,126
0.00% 0.51% 0.51% 0.59% 0.62%
Fiscal Year
- 97 -
City of Cape Canaveral, Florida Table 5
Tax Revenues by Source of Governmental Funds
Last Ten Fiscal Years
2014 3,244,566 283,621 2,242,170 5,770,357
2013 3,225,874 319,888 2,005,288 5,551,050
2012 3,246,835 343,960 1,926,356 5,517,151
2011 3,701,683 270,065 2,001,431 5,973,179
2010 3,301,598 286,961 2,055,467 5,644,026
2009 3,988,772 275,700 2,038,270 6,302,742
2008 3,938,006 250,773 2,005,460 6,194,239
2007 4,126,664 256,561 1,989,636 6,372,861
2006 2,992,452 252,083 1,959,958 5,204,493
2005 2,557,357 224,376 1,822,758 4,604,491
Note: This schedule represents General Fund Revenues and Special Revenue Funds
Property Taxes
Local Option Gas
Taxes
Utility and Franchise
Taxes
Fiscal Year Ending
September 30 Total
Property Taxes
Local Option
Gas Taxes
Utility and
Franchise
Taxes
Tax Revenues by Source - Governmental Funds
FY 2013-2014
- 98 -
City of Cape Canaveral, Florida Table 6
Assessed Value and Actual Value of Taxable Property - Unaudited
Last Ten Fiscal Years
Real Property
2014 $ 989,531,576 $ 32,828,416 $ 1,030,739,246 $ 130,106,420 $ 854,722,277 3.9102 82.9%
2013 953,512,651 29,345,431 970,827,011 129,335,640 819,560,573 4.0739 84.4%
2012 958,287,212 28,849,632 975,052,202 130,946,400 822,683,104 4.0739 84.4%
2011 1,088,815,240 37,635,713 1,124,450,953 138,574,430 944,852,429 4.0739 84.0%
2010 1,297,016,050 44,355,005 1,341,371,055 256,232,810 1,114,328,062 3.0671 83.1%
2009 1,621,339,380 44,924,563 1,666,263,943 316,819,560 1,343,479,136 3.0671 80.6%
2008 1,739,019,845 42,792,900 1,781,812,745 321,863,840 1,459,073,335 2.7816 81.9%
2007 1,773,047,020 39,450,089 1,812,497,109 386,735,730 1,424,882,519 3.0000 78.6%
2006 1,279,256,860 39,350,917 1,318,607,777 284,498,670 1,033,238,067 3.0000 78.4%
2005 934,515,330 34,151,150 968,666,480 185,091,110 782,698,200 3.3740 80.8%
Source: Brevard County Property Appraiser (Form DR-403 AM)
Assessed Value
as a Percentage
of Actual ValueTotal Direct Tax
RateTotal Taxable Assessed
Value Exemptions Real Property Estimated Actual ValuePersonal Property
Fiscal
Year
Ending
Sept. 30
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2006 2007 2008 2009 2010 2011 2012 2013 2014MillionsActual vs Assessed Value of Taxable Property
Actual Value Assessed Value
- 99 -
City of Cape Canaveral, Florida Table 7
Property Tax Rates - Direct and Overlapping Governments - Unaudited
Last Ten Fiscal Years
Brevard
Fiscal Year Library Police Fire Beautification Total County
2014 0.0709 1.9187 1.4390 0.4816 3.9102 5.6200 7.6060 17.1362
2013 0.0739 2.0000 1.5000 0.5000 4.0739 6.2857 8.0960 18.4556
2012 0.0739 2.0000 1.5000 0.5000 4.0739 6.2857 8.1120 18.4716
2011 0.0739 2.0000 1.5000 0.5000 4.0739 5.6752 7.6530 17.4021
2010 0.0453 1.4166 1.2715 0.3337 3.0671 4.9714 7.6870 15.7255
2009 0.0453 1.4166 1.2715 0.3337 3.0671 5.1265 7.6610 15.8546
2008 0.0453 1.4166 0.9860 0.3337 2.7816 5.0713 7.5310 15.3839
2007 0.0500 1.5620 1.0200 0.3680 3.0000 5.4375 7.6670 16.1045
2006 0.0500 1.5620 1.0200 0.3680 3.0000 5.3405 7.9630 16.3035
2005 0.0500 1.7500 1.2060 0.3680 3.3740 5.9216 8.1940 17.4896
(1) Millage Rate includes General Fund and Library Fund
Data source: Brevard County Tax Collector
Brevard School
District
Total Direct &
Overlapping Rates
Mills (per $1,000 of assessed valuation)
Cape Canaveral (1)
0.0000
1.0000
2.0000
3.0000
4.0000
5.0000
6.0000
7.0000
8.0000
9.0000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014MillsTax Rates for Cape Canaveral
Residents
Cape Canaveral Brevard County Brevard Schools
- 100 -
City of Cape Canaveral, Florida Table 8
Principal Property Taxpayers (Major Taxpayers) - Unaudited
Current Year and Ten Years Ago
Tax
Percent of
Total City
Taxable Tax
Percent of
Total City
Taxable
Taxpayer Product/Service Assessed Rank Value Assessed Rank Value
Cape Caribe, Inc. Time Share Development 207,834$ 1 6.22% 98,158$ 1 3.71%
Cocoa Beach Motel Two, Inc.Hotel 29,913 2 0.90% 43,838 2 1.66%
Cape Canaveral Joint Venture Manufacturing 19,531 3 0.58% 29,828 3 1.13%
Palms East of Cape Canaveral, LLC Rental Property 15,895 4 0.48% 24,857 4 0.94%
Portview Inn & Suites, LLC Hotel 14,390 5 0.43%
Transmontaigne Terminals, LLC 14,036 6 0.42%
A1A Acquisition Group Ltd., LLP 13,197 7 0.39%
Oceanside Treasure, LLC Rental Property 12,982 8 0.39%20,337 5 0.77%
IAP World Services, Inc. Contractor 12,474 9 0.37% 14,688 8 0.56%
Canaveral Properties, LLC 11,026 10 0.33%
Puerto Del Rio LLC. Condominium 19,542 6 0.74%
Coastal Fuels Marketing.15,403 7 0.58%
AJT. Ltd.12,700 10 0.48%
Sheldon Cove, Ltd 13,112 9 0.50%
Total Taxes Assessed 351,278$ 10.51% 292,463$ 11.07%
Source: Brevard County Tax Collector
Year Ended September 30, 2014 Year Ended September 30, 2005
Cape Caribe, Inc.59%Cocoa Beach Motel Two, Inc.8%
Cape Canaveral Joint Venture
6%
Palms East of Cape Canaveral, LLC
4%
Portview Inn & Suites, LLC
4%
Transmontaigne Terminals, LLC
4%
A1A Acquisition Group Ltd., LLP4%
Oceanside Treasure, LLC4%IAP World Services, Inc.4%
Canaveral Properties, LLC3%
Taxes Assesed to Principal Taxpayers
FY 2013 - 2014
- 101 -
City of Cape Canaveral, Florida Table 9
Property Tax Levies and Collections - Unaudited
Last Ten Fiscal Years
2014 3,344,618$ 3,178,717$ 95.04% -$ 3,178,717$ 95%
2013 3,338,808 3,109,406 93.13% 65,851 3,175,257 95%
2012 3,350,872 3,157,481 94.23% 116,468 3,273,949 98%
2011 3,848,393 3,712,491 96.47% 89,352 3,801,843 99%
2010 3,417,270 3,197,358 93.56% 100,626 3,297,984 97%
2009 4,120,587 3,914,799 95.01% 53,324 3,968,123 96%
2008 4,060,992 3,918,689 96.50% 64,899 3,983,588 98%
2007 4,278,807 4,114,800 96.17% 20,806 4,135,606 97%
2006 3,102,035 2,985,472 96.24% 32,445 3,017,917 97%
2005 2,642,881 2,523,350 95.48% 3,464 2,526,814 96%
Source: Brevard County Property Appraiser and Tax Collector
Collections in
Subsequent Years Amount
Percentage of
Levy
Total Collections to Date
Fiscal Year
Taxes Levied for the Tax
Year Amount Collected
Percentage of
Levy
Collections Within The Fiscal Year of the
Levy
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014ThousandsProperty Tax Levies
- 102 -
City of Cape Canaveral, Florida Table 10
Ratios of Outstanding Debt by Type - Unaudited
Last Ten Fiscal Years
Total
2014 5,500,000$ -$ 802,051$ 6,302,051$ 346,961,640 1.82% 629
2013 - - 1,417,551 1,417,551 351,582,346 0.40% 142
2012 - - 1,684,340 1,684,340 350,070,168 0.48% 170
2011 - - 2,268,987 2,268,987 319,379,658 0.71% 218
2010 - - 2,836,184 2,836,184 313,890,720 0.90% 270
2009 - - 3,386,452 3,386,452 260,994,641 1.30% 323
2008 - - 4,438,210 4,438,210 373,969,140 1.19% 417
2007 - 35,649 4,940,666 4,976,315 334,726,800 1.49% 473
2006 - 69,626 5,901,044 5,970,670 330,000,228 1.81% 567
2005 - 102,010 5,428,128 5,530,138 308,495,330 1.79% 551
Source:(a) Economic Development Commission of Florida's Space Coast
these ratios are calculated from this information.
(b) See Economic Development Commission Community Data for Cape Canaveral Qtr 1 2014
Governmental Activities
Note: Details regarding the City's outstanding debt are located in the Notes to Financial Statements.
Revenue
Note Payable
Capital Leases
State
Revolving
LoansFiscal
Year
Total Personal
Income (a)
Business-Type
Activities
Percentage
of Personal
Income Per
Capita (b)
- 103 -
City of Cape Canaveral, Florida Table 11
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita - Unaudited
Last Ten Fiscal Years
Fiscal Year Population (a) Assessed Value (b)
2014 10,022 854,722,277 - 0.00% 0.00
2013 9,987 819,560,573 - 0.00% 0.00
2012 9,926 822,683,104 - 0.00% 0.00
2011 10,426 944,852,429 - 0.00% 0.00
2010 10,491 1,114,169,772 - 0.00% 0.00
2009 10,499 1,342,062,936 - 0.00% 0.00
2008 10,635 1,695,471,375 - 0.00% 0.00
2007 10,526 1,424,882,520 - 0.00% 0.00
2006 10,363 1,248,288,980 - 0.00% 0.00
2005 10,034 911,271,870 - 0.00% 0.00
Source: (a) Bureau of Economic & Business Research, UF
(b) Brevard County Property Appraiser (Form BC-403AV)
Net Bonded Debt
Ratio of Net
Bonded Debt to
Assessed Value
Net Bonded
Debt Per Capita
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City of Cape Canaveral, Florida Table 12
Pledged Revenue Coverage - Sewer System - Unaudited
Last Ten Fiscal Years
(a) (b) (c) (d) (e)
2014 3,569,928$ 649,383$ 5.50 1,946,033$ 2.50
2013 3,363,595 649,383 5.18 2,040,297 2.04
2012 3,602,765 649,383 5.55 2,101,172 2.31
2011 3,376,100 645,264 5.23 2,022,564 2.10
2010 3,191,341 644,579 4.95 2,240,191 1.48
2009 2,988,288 644,730 4.63 2,322,703 1.03
2008 2,778,882 644,853 4.31 2,167,963 0.95
2007 2,937,665 649,383 4.52 2,092,434 1.30
2006 3,727,507 645,127 5.78 1,883,148 2.86
2005 3,151,095 645,254 4.88 1,756,427 2.16
Notes: (a) Total debt coverage revenues and connection fees
(b) Total operating expenses net of depreciation
(c) Debt Service Coverage based on Operating Revenues
(d) Required coverage is 1.25 for Bonds (1.15 and 1.20 for state loans)
Operating
Coverage
Fiscal Year
Debt Coverage
Revenues
Debt Service
Requirements
Debt Service
Coverage
Direct Operating
Expenses
(Excluding
Depreciation)
0.00
1.00
2.00
3.00
4.00
5.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Coverage Ratio
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City of Cape Canaveral, Florida Table 13
Demographic Statistics - Unaudited
Last Ten Fiscal Years
Fiscal Population Median Age
Year (a) (a) (a) (a) (a) (b)
2014 10,022 52.5 6.4% 34,620$ 45,577$ 369
2013 9,987 48.3 7.9% 35,204 43,881 368
2012 9,926 48.3 9.9% 35,268 46,060 375
2011 10,426 50.0 11.1% 30,633 40,468 362
2010 10,491 49.2 11.4% 29,920 40,009 367
2009 10,499 48.4 10.0% 24,859 46,279 365
2008 10,635 48.4 6.5% 35,164 50,261 369
2007 10,526 48.4 4.4% 31,800 46,335 324
2006 10,523 43.1 3.4% 31,360 45,089 369
2005 10,034 46.2 3.7% 30,745 44,205 363
Source: (a) EDC & Bureau of Labor Statistics - Median age unavailable for 2013.
(b) Cape View Elementary
Unemployment
Rate
Per Capita Personal
Income
Median Household
Income
School
Enrollment
20,000
22,000
24,000
26,000
28,000
30,000
32,000
34,000
36,000
38,000
Per Capita Income
8,000
8,500
9,000
9,500
10,000
10,500
11,000
Population
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City of Cape Canaveral, Florida Table 14Principal Employers - UnauditedCurrent Year and Nine Years AgoEmployerRankRankBrevard County School District10,115 1 4.12%9,064 1 3.58%Health First, Inc.7,800 2 3.18%6,100 4 2.41%Harris Corporation6,005 3 2.45%6,500 3 2.57%Brevard County Government2,405 4 0.98%3,137 5 1.24%USAF 45th Space Wing2,090 5 0.85%0.00%NASA2,040 6 0.83%2,018 8 0.80%Wuesthoff Medical Center1,610 7 0.66%2,500 7 0.99%Eastern Florida State College1,490 8 0.61%0.00%Rockwell Collins Inc.1,445 9 0.59%0.00%Florida Institute of Technology1,340 10 0.55%0.00%Northrop Grumman Corporation 2,000 90.79%Total 36,340 14.82%31,319 12.38%Source: Economic Development Commission of Florida's Space CoastNote: Figures are for Brevard County. No City figures are available. No data available for Fiscal Year 200520142006Percentage of Total County EmploymentNumber of EmployeesNumber of EmployeesPercentage of Total County Employment- 107 -
City of Cape Canaveral, FloridaTable 15Full-Time Equivalent City Government Employees by Function/Program - UnauditedLast Ten Fiscal Years2014201320122011 2010 2009 2008 2007 2006 2005Function/programGeneral Government: Executive/Administration5.005.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Finance4.003.50 3.00 3.00 3.00 3.00 3.00 3.00 1.50 1.50 Building Department6.005.00 5.00 5.50 4.50 5.50 5.50 5.50 3.00 3.00 Recreation8.007.00 7.00 5.50 5.50 6.00 6.00 6.00 5.50 4.50Infrastructure Maintenance Dept.7.006.00 6.00 7.00 8.00 8.00 8.00 8.00 9.00 9.00Public Safety: Crossing Guards1.501.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Code Enforcement2.002.00 1.00 1.50 1.50 1.50 1.50 1.50 1.00 1.00Public Works: Waste Water Treatment Plant17.0018.00 18.00 19.50 19.50 19.50 19.50 19.50 21.50 21.50 Stormwater2.001.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00Totals 52.5049.00 46.50 48.50 48.50 50.00 50.00 50.00 48.00 47.00Source: City of Cape Canaveral, Florida's CAFRsMethod: 1.0 for full-time employees and 0.50 for part-time and seasonal employeesNote: Police & Fire Departments are contracted out and Personnel not included in City totals- 108-
City of Cape Canaveral, FloridaTable 16Operating Indicators by Function - UnauditedLast Ten Fiscal Years20142013 2012 2011 2010 2009 2008 2007 2006 2005FunctionGeneral governmentBuilding permits issued935 1,080 836 749 796 736 707 782 872 N/ABuilding inspections conducted1,678 1,773 1,342 1,218 1,444 1,663 1,663 2,355 3,674 N/APolicePhysical arrests625 511 832 1,003 990 1,054 1,026 660 1,009 N/AParking violations317 142 287 357 623 860 521 265 325 N/ATraffic violations798 852 864 1,706 2,995 1,748 1,642 2,043 2,221 N/AFireEmergency responses1,581 1,676 1,567 1,549 1,349 1,253 1,328 1,305 1,405 N/AFires extinguished61 25 70 79 75 78 83 32 36 N/AInspections1,543 1,658 1,505 1,448 830 630 98 230 203 N/APublic worksStreets resurfacing (feet)- - - 3,925 - - - 57,180 1,025 N/APotholes repaired12 30 12 24 10 8 24 8 29 N/AWater/SewerAccounts2,723 2,718 2,705 8,491 8,452 8,481 9,200 9,213 8,801 N/AWater main breaks6 - - 1 2 6 10 10 11 N/AAverage monthly useage10,899 10,993 27,395 32,120 29,286 29,333 27,949 31,203 31,112 N/AWastewaterAverage daily wastewater treatment 1,096,000 1,096,000 1,096,000 1,070,700 1,200,000 1,200,000 1,200,000 1,200,000 1,100,000 N/ASource: City of Cape Canaveral and City of Cocoa, FloridaNote: In accordance with Inter-Municipal Agreement, Water & Services provided to City of Cape Canaveral by City of Cocoa Water Department. Sewer is City of Cape Canaveral revenue; Water is City of Cocoa revenue.Fiscal Year 2005 figures not available.- 109 -
City of Cape Canaveral, FloridaTable 17Capital Asset Statistics by Function - UnauditedLast Ten Fiscal Years 20142013 2012 2011 2010 2009 2008 2007 2006 2005FunctionPoliceStations1 1 1 1111111Substations1 1 1 1111111Patrol units22 22 28 2829 31 26.5 29 30 25FireStations1 1 1 1111111Public worksStreets (lane miles)16 16 16 1616 16 16 16 16 16Streetlights645 645 622 622556 556 540 540 540 540Recreation and cultureParks8 8 8 8888884Parks - acres26.99 26.99 26.99 26.9926.99 26.99 26.99 26.99 26.99 21.29Playgrounds4 4 4 4443333Tennis courts5 5 55555555Baseball/softball diamonds2 2 2 2222222Soccer/football fields1 1 11111111City centers1 1 11111111WaterWater mains (miles)48 48 48 48 48 48 48 48 48 48Fire hydrants214 214 214 214214 214 214 214 214 214Storage capacity (thousands of gallons)NoneNone None None None None None None None NoneWastewaterSanitary sewers (miles)16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.5 16.5 16.5 Treatment capacity (thousands of gallons)1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,200,000 1,100,000 1,100,000 Source: City of Cape Canaveral and City of Cocoa, FloridaNote: In accordance with Inter-Municipal Agreement, Water & Services provided to City of Cape Canaveral by City of Cocoa Water Department. Storage Tanks are not located in City of Cape Canaveral .- 110 -
City of Cape Canaveral, FloridaTable 18Water/Wastewater Distribution and Consumption - UnauditedFiscal Year 2014Water & Wastewater Distribution & ConsumptionNumber of Accounts2,725Total Meters Billed2,725Residential Meters (3/4")1,708Non-residential Meters1,017Average Monthly Useage (thousands of gallons)10,899Average Consumption per meter (thousands of gallons)4.00 Average Monthly Wastewater Collection (thousands of dollars)$282,320 Source: City of Cocoa Water/Sewer Distribution Report FY 2013-14 & City of Cape Canaveral General Ledger Note: In accordance with Inter-Municipality Agreement, water plant & services provided to City of Cape Canaveral by City of Cocoa Water Department. Sewer is City of Cape Canaveral revenue; water is City of Cocoa revenue. - 111 -
City of Cape Canaveral, Florida Table 19
Water and Wastewater Rates - Unaudited
Last Ten Fiscal Years
Water Wastewater
Fiscal Year
2014 14.59$ 3.04$ 17.54$ 5.11$
2013 14.59 3.04 16.70 4.86
2012 13.89 2.89 15.82 4.60
2011 12.54 2.61 14.93 4.34
2010 11.62 2.41 14.08 4.09
2009 11.52 2.31 13.27 3.85
2008 11.52 2.31 12.51 3.63
2007 10.01 2.01 11.45 3.42
2006 10.01 1.82 11.45 3.42
2005 9.61 1.75 11.45 3.42
Note: Rates are based on 3/4" meter, the standard household meter size.
Source: City of Cape Canaveral, Financial Services Department
Note: In accordance with Inter-Municipality Agreement, Water Plant & Services provided to City of Cape
Canaveral by City of Cocoa Water Department. Sewage is City of Cape Canaveral revenue; Water is City of
Cocoa Revenue.
Monthly Base Rate Rate per 1,000
Gallons Monthly Base Rate Rate per 1,000
Gallons
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City of Cape Canaveral, Florida Table 20
Construction, Property Value and Bank Deposits - Unaudited
Last Ten Fiscal Years
(b) (c)
Bank
Fiscal # of # of Deposits
Year Units Value Units Value (in thousands)
2014 1 557,455$ - -$ 25,763,338,328$ n/a
2013 0 - 4 877,749 24,623,285,124 n/a
2012 0 - 2 401,774 24,940,629,760 n/a
2011 0 - 2 436,946 29,200,360,669 n/a
2010 0 - 1 253,243 33,481,448,591 9,293,940
2009 0 - 7 1,594,097 38,082,052,116 9,112,122
2008 4 3,683,089 11 2,315,049 40,973,507,774 9,069,186
2007 3 5,296,641 25 7,191,839 39,375,931,246 8,423,971
2006 2 70,179 37 7,582,680 31,060,244,010 6,795,498
2005 3 22,435,578 292 56,489,380 25,334,959,340 7,009,385
Data source:
(a) City of Cape Canaveral Building Department
(b) Brevard County Tax Collector
(c) Florida Bankers Association (figures are for Brevard County)
Commercial
Construction (a)
Residential
Construction (a)
Brevard County Real and Personal
Property Taxable Value
0
10
20
30
40
50
60
70
80
90
100
110
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Permit Value(In Millions)Commercial and Residential Building Permits
Commercial Residential
- 113 -
City of Cape Canaveral, Florida Table 21
Miscellaneous Statistics - Unaudited
September 30, 2014
Date of Incorporation May 16, 1963
Form of Government Council - Manager
Area/Square Miles 1.9 sq. miles
Miles of Streets:
Paved 16
Unpaved .2 miles
Street Lights 645
Fire Protection:
Number of Stations 1
Number of Firefighters (volunteer) 14
Number of Firefighters (paid) 35
Police Protection:
Number of Stations 1
Number of Police Officers 27.5
Recreation:
Parks - acres 26.99
Number of special use facilities 2
Number of neighborhood parks 8
Undeveloped land, dedicated for recreation use (acres) 7.88
Wastewater
Gravity Sewer mains 16.6 miles
Force mains 2.8 miles
Storm sewers 9.5 miles
Reclaim lines 14 miles
Number of reuse accounts 692
Number of accounts (wastewater) 2725
Schools:
Elementary 1
Building Permits Issued 935
Number of City Employees (excluding police officers and firefighters) 52.5
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Other Reports
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INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor, City Council, and City Manager,
City of Cape Canaveral, Florida:
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of
City of Cape Canaveral, Florida, (the City) as of and for the year ended September 30, 2014, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated March 17, 2015.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we
consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
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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 entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Daytona Beach, Florida
March 17, 2015
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INDEPENDENT AUDITORS’ MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550, RULES OF THE STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL
To the Honorable Mayor, City Council, and City Manager,
City of Cape Canaveral, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Cape Canaveral, Florida (the City), as of and for
the fiscal year ended September 30, 2014, and have issued our report thereon dated March 17, 2015.
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 Florida Auditor General.
Other Reports and Schedule
We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountants’ Examination 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, which are dated March 17, 2015, 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 audit report. The following summarizes the status of prior year findings and recommendations:
2013-001 Approval of Transfers: Corrective action taken.
2013-002 Noncompliance with Debt Covenant for Escrow Account: Corrective action taken
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. The legal authority for the primary government of the reporting entity is disclosed in Note 1 of the basic financial statements.
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Financial Condition
Section 10.554 (1)(i)5.a., Rules of the Auditor General, requires that we 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 conditions 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.
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
Section 10.554(1)(i)6.b., Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the City, for the fiscal year ended
September 30, 2014, filed with the Florida Department of Financial Services pursuant to Section
218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year
ended September 30, 2014. In connection with our audit, we determined these two reports were in
agreement.
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 noted no such
recommendations.
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 the City Council, and is not
intended to be and should not be used by anyone other than these specified parties.
Daytona Beach, Florida
March 17, 2015
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INDEPENDENT ACCOUNTANTS’ EXAMINATION REPORT
To the Honorable Mayor, City Council, and City Manager,
City of Cape Canaveral, Florida
We have examined the City of Cape Canaveral, Florida’s (the City) compliance with Section 218.415,
Florida Statutes, Local Government Investment Policies, for the year ended September 30, 2014.
Management is responsible for the City’s compliance with those requirements. Our responsibility is to
express an opinion on the City’s compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence
about the City’s compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides a reasonable basis
for our opinion. Our examination does not provide a legal determination on the City’s compliance with
specified requirements.
In our opinion, the City of Cape Canaveral, Florida complied, in all material respects, with the
aforementioned requirements for the year ended September 30, 2014.
Daytona Beach, Florida
March 17, 2015
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