HomeMy WebLinkAboutCAFR 2014-2015
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF CAPE CANAVERAL, FLORIDA
FISCAL YEAR ENDED SEPTEMBER 30, 2015
Prepared By:
City of Cape Canaveral Finance Department
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CITY OF CAPE CANAVERAL, FLORIDA
TABLE OF CONTENTS
SEPTEMBER 30, 2015
Page
Number(s)
INTRODUCTORY SECTION
List of Princial Officials 3
p
Letter of Transmittal 7-14
Oranizational Char 17
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Certificate of Achievement for Excellence in Financial Reortin19
pg
FINANCIAL SECTION
Indeendent Auditors’ Reort25–26
pp
Manaement’s Discussion and Analsis
29–39
gy
Basic Financial Statements
Governmen-wide Financial Statements:
t
Statement of Net Position 42
Statement of Activities 43
Fund Financial Statements:
Balance Sheet – Governmental Funds44
Reconciliation of the Balance Sheet of the Governmental Funds to the
Statement of Net Position 45
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 46
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities47
Statemen of Revenues, Expenditures, and Changes in Fund Balance –
t
Budet to Actual-General Fund 48
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Statemen of Revenues, Expenditures, and Changes in Fund Balance –
t
Budget to Actual-Cape Canaveral Community Redevelopment Agency
Fund 49
Statement of Net Position – Prorietar Funds50
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Statement of Revenues, Expenses, and Changes in Fund Net Position–
Prorietar Funds 51
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Statement of Cash Flows – Prorietar Funds52
py
Notes to Financial Statements 54-74
Reuired Sulementar Information
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Schedule of Fundin Proress – Other Pos-Emloment Benefits76
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Combinin and Individual Fund Statements and Schedules
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Combinin Balance Sheet – Nonmaor Governmental Funds80
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Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmaor Governmental Funds 81
j
Schedule of Revenues, Expenditures, and Changes in Fund Balances –Budget to
Actual 82-84
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CITY OF CAPE CANAVERAL, FLORIDA
TABLE OF CONTENTS
SEPTEMBER 30, 2015
(Continued)
Page
Number(s)
STATISTICAL SECTION
Table 1 – Net Position y Component 89
b
Table 2 – Changes in Net Position 90–91
Table 3 – Fund Balances of Governmental Funds
92–93
Table 4 – Changes in Fund Balances of Governmental Funds 94–95
Table 5 – Tax Revenues by Source of Governmental Funds96
Table 6 – Assessed Value and Actual Value of Taxable Property97
Table 7 – Property Tax Rates – Direct and Overlapping Governments
98
Table 8 – Principal Property Taxpayers (Major Taxpayers)99
Table 9 – Property Tax Levies and Collections100
Table 10 – Ratios of Outstanding Debt by Type101
Table 11 – Ratio of Net General Obligation Bonded Debt to Assessed Value and Net
Bonded Debt Per Capita 102
Table 12 – Direct and Overlapping Governmental Activities Deb103
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Table 13 – Pledged-Revenue Coverage –WastewateSystem
104
r
Table 14 – Demographic Statistics
105
Table 15 – Principal Employers 106
Table 16 – Full-Time Equivalent City Government Employees by Function/ Program 107
Table 17 – Operating Indicators by Function/Program108
Table 18 – Capital Asset Statistics by Function/Program
109
Table 19 – Water Wastewate Distribution and Consumption –Unaudited110
/r
Table 20 – Water and Wastewate Rates –Unaudited111
r
Table 21 – Construction, Property Value and Bank deposits –Unaudited112
Table 22 – Miscellaneous Statistics – Unaudited
113
SINGLE AUDIT AND OTHER REPORTS
Schedule of Expenditures of State Financial Assistance117
Schedule of Findings and Questioned Costs118
Independent Auditors’ Report on Compliance for Each Major State Project and
on Internal Control Over Compliance In Accordance with Chapter 10.550,
Rules of the Auditor General 119 – 120
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 121 – 120
Independent Auditors’ Management Letter Required by Chapter 10.550, Rules of
the State of Florida Office of the Auditor General 123 – 124
125
Independent Accountants’ Examination Report
Management’s Response to Findings 127
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Introductory Section
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City of Cape Canaveral, Florida
Comprehensive Annual Financial Report
Fiscal year ended September 30, 2015
City Council
Honorable Rocky Randels, Mayor
Robert Hoog, Mayor Pro Tem
John Bond
Buzz Petsos
Betty Walsh
City Manager
David Greene
City Attorney Administrative/Financial
Services Director
Anthony Garganese John DeLeo
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Letter of Transmittal
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The Honorable Mayor, et al
financial statements for the Fiscal Year ended September 30, 2015 are fairly presented in
conformity with GAAP. The independent auditor’s report is located at the front of the financial
section of this Report.
GAAP requires that management provide a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City’s MD&A can be found immediately following the report of the
independent auditors.
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 10,049 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
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The Honorable Mayor, et al
2015 averaged 6.0% and is currently at 5.4%, (according to Homefacts.com). The national
unemployment rate dropped to 5.2% in September 2015 (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 Blue Origin, Space X, Embraer S.A. and Northrup Grumman’s expansion at
the Melbourne International Airport; expansion of Port Canaveral’s Cruise and Cargo 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 8.4% over the
previous year and is expected to rise again in 2016. Overall, foreclosure rates within the county
are down considerably, and 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.
MAJOR INITIATIVES
The Capital Projects completed and/or currently being undertaken by the Public Works Services
(PWS) Department are numerous and much needed for improvements to both the City’s
Wastewater and Stormwater systems. These Capital Projects are funded through a number of
sources including Enterprise Capital Funds (Stormwater and Wastewater), an approved State
Revolving Fund (SRF) loan from the Florida Department of Environmental Protection (FDEP), a
grant from the St. Johns River Water Management District (SJRWMD) and appropriations from
the State Legislature.
Renovations at the Wastewater Treatment Plant (WWTP) Main Building were completed in
December 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 current code requirements. The Main Building was
constructed in 1966.
The Grit/Bar Screen Replacement Project was completed in September 2015 and included the
replacement of a portion of the headworks at the WWTP. Excessive amounts of larger debris
were passing through the former headworks and into the wastewater treatment train thus
reducing treatment efficiency.
The Lift Station #6 (Imperial Drive) Regional Project and #7 (West Central Boulevard)
Replacement Project was initiated in August 2015. The lift stations required upgrade/expansion
due to continued growth in the northern portion of the City. Lift Station #7 is being relocated to
City-owned property in Manatee Park. Emergency generators will also be installed at each of the
lift stations. Project completion is anticipated in March 2016.
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The construction of a 2.5-million gallon reclaimed water storage tank was initiated in September
2015. Completion of the new tank will increase the City’s storage capacity for reclaimed water to
3.5-million gallons. The new tank will allow the City to eliminate discharges of treated
wastewater to the Banana River Lagoon (BRL). The Project also includes expansion of the Belt
Filter Press Building, installation of a second belt filter press and rehab of the existing belt filter
press (over 20 years old). Project completion is anticipated in March 2016.
The stormwater pipe beneath the northern side of West Central Boulevard from Brown Circle to
the Central Ditch was upgraded in July 2015. The pipe is composed of corrugated iron and was
corroded. The pipe was lined with a concrete material especially designed for stormwater pipes
to improve stormwater flow and strengthen metal pipes. The use of this pipe restoration method
eliminated the need to excavate the existing pipe in an area of numerous utilities and high
vehicular traffic. The Project was funded from the City’s SRF loan.
The development of a new Stormwater Master Plan (SWMP) was completed in December 2014.
The Plan includes computer modeling of stormwater flow within the City’s drainage basins and
proposed future projects to meet the City’s Total Maximum Daily Load (TMDL) requirements of
total nitrogen (TN) and total phosphorous (TP) discharged to the BRL.
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 storm water system and provide improved stormwater flow. Street sweeping of
all curbed streets also continues on a monthly basis.
Engineering drawings and bid specifications were completed and/or initiated for numerous other
improvement projects including the following:
SRF Projects:
Holman Road Sanitary Sewer Improvements (Phases I, II and III);
o
Oxidation Ditch Improvements (WWTP); and
o
Canaveral City Park Ex-filtration Project.
o
Non-SRF Projects:
North Atlantic Avenue Streetscape Project;
o
Infrastructure Maintenance Building Replacement;
o
Clarifier System Improvements; and
o
Banana River Park Improvements.
o
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Brief descriptions of projects to be completed in 2016 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 10-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. Construction is scheduled to begin in January 2016.
The Oxidation Ditch Improvements Project includes the complete redesign of the Oxidation
Ditch system at the WWTP. There is currently no redundancy. 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.
Construction is scheduled to begin in Summer 2016.
The Canaveral City Park Ex-filtration Project includes the construction/installation of exfiltration
piping beneath Canaveral City Park. The piping will allow for exfiltration of stormwater from
area streets into the surficial aquifer. This Project will eliminate a substantial amount of
stormwater discharge to the BRL. Construction is scheduled to begin in Summer 2016.
Construction plans were finalized 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) from FDOT and $860,000 in funding was received from Brevard County
Transportation Impact Fees. This Project includes construction of a new pedway and sidewalk,
lighting and stormwater improvements, landscaping improvements and numerous decorative
features. Construction is scheduled to begin in February 2016; project completion is anticipated
in September 2016.
The Infrastructure Maintenance (IM) Building at the WWTP will be demolished and a new,
larger building will be constructed at the site. The existing building has aged with numerous
deficiencies affecting operational efficiency and the work environment. Storage facilities have
limited capacity for IM equipment and vehicles. Construction is scheduled to begin in Summer
2016.
The two clarifiers at the WWTP will be fitted with covers to eliminate algae formation.
Currently, algae forms in the clarifiers due to exposure of partially-treated wastewater to
sunlight. Algae removal is time-consuming and a safety hazard to PWS Staff. The covers will be
installed in March 2016.
PWS Staff is contributing funds and labor to phased improvements at Banana River Park in the
northwestern portion of the City. The work includes expansion of the reclaimed water system,
improvements to the stormwater system and landscaping upgrades. Phase I of the Project was
initiated in September 2015; project completion is anticipated in March 2016.
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Branding.
The City of Cape CanaveralBranding Initiative is increasing overall awareness/
positive perception of the City by engaging residents/businesses to market the City internally and
externally as a vibrant, attractive City in which to live, work, play, learn, invest and visit.
City Hall Project
. The current City Hall facility was built in 1966/67 and has served the City
well; however, it no longer meets the City government’s needs. Core City Hall services have
been separated, with the Community Development Department located across the street (110
Polk Ave.) from City Hall and the City Council Chambers located further down the street at the
Public Library. Accordingly, all are challenged to properly function and serve the public in
separate buildings. Aging and obsolete, the City Hall building and the Community Development
Department buildings, were constructed in the late-1960s and early-1970s. The facility at 110
Polk Ave. will be demolished as part of the overall New City Hall project and all three of these
core services will be available under one roof. The old City Hall building is ripe for
redevelopment and continuation as part of the government services campus. The facility will be
utilized to expand leisure services activities such as a senior center, youth center, multi-
generational center or community center. An extremely competitive construction/financing
opportunity was seized by the City and in July of 2013, GLE Associates was engaged to provide
design and construction support services for a New City Hall resulting in a remarkable classical
Mediterranean Revival design which includes a two story, 18,517 square foot building located on
a 1.29 acre parcel at the northeast corner of the Polk Ave./A1A intersection.
As part of this project, a portion of the Polk Avenue right-of-way will be closed to accommodate
the creation of a paver brick piazza/plaza adjacent to A1A. This area will support the goal of a
connected community campus of buildings as well as provide a public gathering area that will
serve both the current and New City Hall buildings. Construction is anticipated to start late in the
first quarter of 2016; occupancy is anticipated late in the first quarter of 2017.
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Economic Opportunity Overlay District (EOOD).
The EOOD is the City’s primary attractor
for new commercial interests. The EOOD addresses community goals raised in the Visioning
Initiative. The district leverages opportunities for economic development resulting from our
proximity to Port Canaveral by attracting services desired by the citizens/visitors. It facilitates
mixed-use & town center type development. The EOOD includes increased design standards for
architecturally significant buildings, a mechanism for increased building heights, revised hotel
requirements and increased landscaping requirements.
Originally encompassing commercial/industrial properties on and near A1A, north of the N.
Atlantic Ave. split, a southern overlay was approved in 2015, expanding the boundary to
encompass commercial properties on and near the southern half of A1A to Grant Ave. The
expansion includes certain residential properties adjacent to the Banana River. This makes
waterfront destinations possible – another goal of the Visioning. Certain additional properties
adjacent to Port Canaveral were also included in the expansion area.
Leisure Services Enhancements.
The Banana River Park Phase I Project began in September
2015 which consists of a restroom/pavilion construction and water side amenities. Phase II
construction will follow in FY15/16 which will consist of a north parking lot, kayak dock and
landscaping. Finally, Phase III will consist of synthetic putting green, shade shelter, synthetic
bocce ball court, site amenities and landscaping.
The City built the Health Park at Xeriscape in September 2015 which provides residents an array
of state of the art exercise stations to improve their physical fitness and mental well-being.
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 received 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
(completed in October 2014), and Refurbishment of the Wastewater Treatment Plant (completed
in November 2014) and related Capital Improvements.
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The City’s Wastewater enterprise fund has long term debt of $2,105,069. As the City continues
to pay on its existing State Revolving Fund Loan, which will be paid in full by April 2016, this
will reduce the previous financial obligation of $145,996 annually. Moving forward, the City has
already secured two new State Revolving Fund Loans for Wastewater Treatment & Reuse
Facilities/Stormwater Management Facilities totaling $7,964,168 at a low 1.69% interest rate.
The FY 15-16 Budget encompasses $5,157,413 in Wastewater/Stormwater Projects to be funded
by SRF Loans with repayment beginning June 15, 2018, with semi-annual Loan Payments of
$173,207.
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Cape
Canaveral for its Comprehensive Annual Financial Report for the Fiscal Year ended September
30, 2014. This was the 20th consecutive year that the City has achieved this prestigious award. In
order to be awarded a Certificate of Achievement, a government must publish an easily readable
and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. We believe the current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program requirements. It will be submitted to the GFOA to determine eligibility for another
Certificate.
The culmination of this document is attributable to numerous facets of this organization. Special
recognition is credited to the Financial Services Staff for their dedication to accurate and
thorough financial reporting and accountability. Our appreciation is extended to the City Council
for its dedication to proactive fiscal policies. Thanks are also extended to the City’s independent
auditing firm of James Moore & Co., P.L., for their assistance with compiling the City’s
Comprehensive Annual Financial Report.
Respectfully submitted,
John DeLeo David L. Greene
Administrative/Financial Services Director City Manager
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Organizational Chart
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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, 2015, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
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 auditors’ 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, 2015, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that themanagement’s
discussion and analysis, budgetary comparison information, 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
accompanying schedule of expenditures of state financial assistance as required by Section 215.97,
Florida Statutes, is presented for purposes of additional analysis and is not a required part of the basic
financial statements.
The combining and individual nonmajor fund financial statements and schedule of expenditures of state
financial assistance 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. The 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 February 8,
2016, 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
February 8, 2016
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Management’s Discussion
and Analysis
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City of Cape Canaveral, Florida
Management’s Discussion and Analysis
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, 2015.
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 $41.1
million (net position). Of this amount, $10.2 million (unrestricted net position) may be used to
meet the City’s ongoing obligations.
The City’s total net position increased by $1 million. 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 $9.78 million, an increase of $12.5 thousand in comparison with the prior year, due
primarily to continued attention to controlling costs and proper management of assets.
At the close of the fiscal year, fund balance for the General Fund was $8,626,802. Of this
amount $105,275 relates to inventory and prepaids as well as long term advances and is
therefore nonspendable. The remaining fund balance includes: restricted ($542,083), committed
($4,393,882) and unassigned ($3,585,562) balances. Within the committed fund balance
category, the largest piece is $3,739,961 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 $794.7 thousand. This was due primarily to
receipt of additional State Revolving Fund money for various wastewater and stormwater
projects, offset by annual debt service payments on the Capital Improvement Revenue Note.
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).
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,
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City of Cape Canaveral, Florida
Management’s Discussion and Analysis
infrastructure maintenance, 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 fundis 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
asgovernmental 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
ofcombining 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 – 49 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
- 30 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
Benefits. Required supplementary information and the related footnotes can be found on page 76 of this
report.
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 – 84 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 $41.1 million at the
close of the 2015 fiscal year.
By far the largest portion of the City’s net position, $29.03 million (70.6%) reflects its investment in
capital assets (e.g., land, buildings, machinery and equipment); less any related debt used to acquire those
assets that is still outstanding. This is an increase from the previous year due to the completion of the
refurbishment of the Wastewater Treatment Plant Building; continued stormwater system maintenance
program; and the City’s sanitary wastewater improvement Projects. The City uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending. Although the
City’s investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves cannot
be used to liquidate these liabilities.
City of Cape Canaveral, Florida
Statement of Net Position
Governmental ActivitiesBusiness-type ActivitiesTotal
201520142015201420152014
Current and other assets10,858,484$ 10,915,445$ 3,014,558$ 3,564,899$ 13,873,042$ 14,480,344$
Capital Assets (Net)18,324,909 18,419,882 17,943,665 15,812,699 36,268,574 34,232,581
Total Assets29,183,393 29,335,327 20,958,223 19,377,598 50,141,616 48,712,925
Current and other liabilitie 1,838,5781,760,838 545,609 882,790 2,306,447 2,721,368
Long-term Liabilities4,553,380 5,060,938 2,143,668 841,388 6,697,048 5,902,326
Total Liabilities6,314,218 6,899,516 2,689,277 1,724,178 9,003,495 8,623,694
Net Position:
Net Investment in
Capital Assets13,333,909 12,919,882 15,697,879 14,389,471 29,031,788 27,309,353
Restricted1,691,174 1,296,710 175,579 423,939 1,866,753 1,720,649
Unrestricted7,844,092 8,219,219 2,395,488 2,840,010 10,239,580 11,059,229
Total Net Position22,869,175$ 22,435,811$ 18,268,946$ 17,653,420$ 41,138,121$ 40,089,231$
A portion of the City’s net position, $1,866,753, or 4.5% of total net position, represents resources that
are subject to external restriction on how they may be used. The balance of unrestricted net position
- 31 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
totaling $10,239,580 may be used to meet the City’s ongoing obligations to citizens and creditors and to
provide funding for various projects
At September 30, 2015, the City is able to report positive balances in all three categories of net position,
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 increase in net position for Governmental activities of $433,364. The
increase for business-type activities was $615,526.
Cit of Cape Canaveral, Florida
y
Changes in Net Position
Governmental ActivitiesBusiness-type ActivitiesTotal
201520142015201420152014
REVENUES
Program Revenues:
Charges for Services1,765,130$ 1,601,192$ 4,313,504$ 4,149,422$ 6,078,634$ 5,750,614$
Operating Grants and Contributio 283,621303,353 - - 303,353 283,621
s 293,67813,886 - - 13,886 293,678
Capital Grants and Contribution
General Revenues:
Property Taxes3,280,632 3,244,566 - - 3,280,632 3,244,566
Utility and Franchise Taxes2,385,223 2,302,715 - - 2,385,223 2,302,715
Intergovernmental 794,366940,785 - - 940,785 794,366
Investment Income80,687 65,002 26,314 16,903 107,001 81,905
Miscellaneous70,668 121,673 4,688 75,356- 121,673
Total Revenues 8,706,813 4,344,506 4,166,325 13,184,870 12,873,138
8,840,364
EXPENSES
General Government1,506,243 1,196,010 - - 1,506,243 1,196,010
Public Safety4,533,243 4,988,955 - - 4,533,243 4,988,955
Transportation982,291 976,126 - - 982,291 976,126
Physical Environment1,039,747 971,376 - - 1,039,747 971,376
Culture/Recreation570,491 721,749 - - 570,491 721,749
Interest on long-term debt 47,124104,385 - - 104,385 47,124
Wastewater- - 2,873,515 2,867,552 2,873,515 2,867,552
Stormwater- - 526,065 463,618 526,065 463,618
Total Expenses
8,901,3408,736,400 3,399,580 3,331,170 12,135,980 12,232,510
Excess (Deficiency) Before Transfer (194,527)103,964 944,926 835,155 1,048,890 640,628
Transfers329,400 (210,604) (329,400) 210,604 - -
Change in Net Position433,364 (405,131) 615,526 1,045,759 1,048,890 640,628
Net Position - Beginning22,435,811 22,840,942 17,653,420 16,607,661 40,089,231 39,448,603
Net Position - Ending$ 22,435,81122,869,175$ 18,268,946$ 17,653,420$ 41,138,121$ 40,089,231$
- 32 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
Statement of Activities
Governmental activities:
The Changes in Net Position Table on page 32 reflects a governmental revenue increase of $133,551, an
increase of 1.53% from the previous fiscal year. This increase reflects both program and general revenues.
Governmental program revenues decreased $96,122, a 4.41% decrease from 2014. This decrease is
primarily the result of a decrease in Capital Grants and Contributions of $279,792 offset by an increase of
$163,938 in Charges for Services.
Revenues by Source -Governmental Activities
Utility and Franchise
(does not include transfers)
27%
Intergovernmental
revenues
11%
Operating grants and
contributions
3%
Capital grants and
Other
contributions
5%
0%
Property tax
Investment income
37%
1%
Miscellaneous
1%
Charges for services
20%
The remaining change relates to general revenues. Significant factors include the following:
Property taxes increased $36,066 from 2014. However, by the end of Calendar Year 2014
property values increased by 8.1%.
Local Option Fuel Tax revenue increased $19,732 over the prior year. This increase of 7% was
caused by an increase in consumption not tied to price.
Investment income increased 24.1% from the prior year. This $15,685 increase resulted from the
delay in construction of the New City Hall and the increase in the rate of return for these funds.
Utility and Franchise Tax revenues increased $82,508 over the prior year. This increase of 3.6%
was the result of franchise fees included as a part of the new Waste-Pro contract.
Intergovernmental income increased $146,419 over the revenue for 2014. This increase related
to revenues received from the county for the Community Redevelopment Agency and various
State revenue sharing entities.
Expenses for governmental activities decreased slightly, showing a 1.85% decrease over 2014
amounts. The most significant decreases related to Public Safety ($455,712), and Culture and
Recreation ($151,258). These decreases were offset by an increase in General Government of
$310,233. The increase in General Government includes payment of increased Legal Service
fees and additional employee benefits; while the Public Safety decrease resulted from decreased
contract costs; and the decrease in Culture and Recreation was primarily caused by the delay of
Phase I of the Banana River Park Project.
- 33 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
Expenses and Program Revenues -Governmental Activities
100%
50%
Program Revenues
0%
Expenses
Business-type activities
Business-type activities experienced an increase in net position of $615,526, or 3.49%.
The major source of revenue for business-type activities is charges for services, which
increased $164,082 (3.95%). This was the result of a Wastewater rate increase and a Reclaimed
Water rate increase totaling $206,333 during 2015.
Investment income increased by $9,411 (55.7%). Most of this revenue increase related to
higher rates of return being earned on investments.
Expenses for both Wastewater and Stormwater operations remained fairly constant during
2015. The increase for all Business-type activities was only $68,410 or 2.05%.
Expenses & Program Revenues
Expenses
Business-type Activities
Program Revenues
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
WastewaterStormwater
- 34 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
Revenues by Source
Business-type Activities
Charges for Services
Capital Grants and
Contributions
Investment Income
Miscellaneous revenues
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.
The City is strategically using its resources more effectively through the recent Economic Development
restructuring which increased focus and provided leverage for the success on the City’s future. As of the
end of the current fiscal year, the total fund balance of the City’s governmental funds was $9,781,004, an
increase of $12,542, or 0.13% from the prior fiscal year.
The General Fund, the City’s main governmental fund, experienced an overall decrease in fund balance of
$464,995 or 5.1%. The most significant reason for this decrease can be contributed to the purchase of new
software, vehicle replacements and Infrastructure Maintenance projects.
- 35 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
General Fund Current Expenditures by Function
General Government
60.0%
Public Safety
50.0%
Transportation
40.0%
Physical Environment
30.0%
Culture/Recreation
20.0%
Capital Outlay
10.0%
0.0%
FY15FY14
The General Fund is the City’s chief operating fund. At the end of the current fiscal year, total fund
balance was $8,626,802. Of this amount $105,275 relates to inventory and prepaids as well as long term
advances and is therefore nonspendable. The remaining fund balance includes restricted ($542,083),
committed ($4,393,882), and unassigned ($3,585,562). Within the Committed Fund Balance category, the
largest piece is $3,739,961 for the purchase of a new facility. The unassigned fund balance represents
40.33% of the total general fund expenditures. The total fund balance represents 97.04% of the total
general fund expenditures. Unassigned funds are available to fund on-going activities of the City’s
various services and programs.
The City maintains three additional major governmental funds. The Cape Canaveral CRA Fund reflects a
positive restricted fund balance of $21,363 at September 30, 2015. This is a significant improvement over
the $62,968 negative fund balance as of September 30, 2014. This positive fund balance is the result of
the receipt of a $91,034 advance from the General Fund to help defray various start-up costs. At
September 30, 2015, the Enterprise Capital Fund has positive assigned fund balance of $1,998. 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 $18,234
Fire Protection Fund $22,392
School Crossing Guard $3,113
Library Fund $331,866
Special Law Enforcement Trust $8,266
The City also has a Non-major Capital Construction Fund. At September 30, 2015, this fund had
restricted fund balance of $746,970. 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 $1,478,567,
and the Stormwater Utility amounted to $916,921. The total increase in net position for the Wastewater
Utility Fund was $540,781, and the increase for the Stormwater Utility was $74,745. Other factors
concerning the finances of these two funds have already been addressed in the discussion of the City’s
business-type activities.
- 36 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
General Fund Budgetary Highlights
At the end of FY2015, as a result of amendments made during the year, the final amended budget
decreased $1,728,515 from the adopted budget. The most significant change was related to a decrease in
general government, public safety and capital outlay.
General Fund Actual vs Budget
$14,000,000
Original Budget
$12,000,000
Final Budget
$10,000,000
Actual Expenditures
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
During the year, actual revenues on a budgetary basis were $8,632,701. This was equal to the final
budgetary estimate of $8,632,701. All final budgeted expenditures also equaled budgeted amounts.
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, 2015, amounts to $36,268,574, 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
$2,035,993. A decrease of $94,973 (0.5%) in governmental activities and an increase of $2,130,966
(13.5%) for business-type activities make up the total.
Significant capital asset events during the current fiscal year included the following:
Refurbishment of the Wastewater Treatment Plant (WWTP) Main Building was completed in
December 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 Grit/Bar Screen Replacement Project was completed in September 2015 and included the
replacement of a portion of the headworks at the WWTP. Excessive amounts of larger debris
were passing through the former headworks and into the wastewater treatment train thus
reducing treatment efficiency.
- 37 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
The stormwater pipe beneath the northern side of West Central Boulevard from Brown Circle
to the Central Ditch was upgraded in July 2015. The pipe is composed of corrugated iron and
was corroded. The pipe was lined with a concrete material especially designed for stormwater
pipes to improve stormwater flow and strengthen metal pipes. The use of this pipe restoration
method eliminated the need to excavate the existing pipe in an area of numerous utilities and
high vehicular traffic.
The development of a new Stormwater Master Plan (SWMP) was completed in December
2014. The Plan includes computer modeling of stormwater flow within the City’s drainage
basins and proposed future projects to meet the City’s Total Maximum Daily Load (TMDL)
requirements of total nitrogen (TN) and total phosphorous (TP) discharged to the BRL.
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 storm water system and provide improved stormwater flow. Street sweeping
of all curbed streets also continues on a monthly basis.
The City built the Health Park at Xeriscape in September 2015 which provides residents an
array of state of the art exercise stations to improve their physical fitness and mental well-
being.
Additional information on the City’s capital assets can be found onpage 66 – 67 of this report.
City of Cape Canaveral's Capital Assets
(net of depreciation)
Governmental ActivitiesBusiness-type ActivitiesTotal
201520142015201420152014
Land7,248,237$ 7,248,237$ 351,084$ 351,084$ 7,599,321$ 7,599,321$
Buildings and Improvements4,751,031 4,711,610 5,215,495 4,143,124 9,966,526 8,854,734
Machinery and Equipment3,015,508 2,950,180 1,925,611 1,685,981 4,941,119 4,636,161
Infrastructure7,061,579 6,935,854 22,774,057 22,449,569 29,835,636 29,385,423
Construction in Progress964,267 740,105 3,132,555 1,707,728 4,096,822 2,447,833
22,585,98623,040,622 33,398,802 30,337,486 56,439,424 52,923,472
Less: Accumulated Depr(4,715,713) (4,166,104) (15,455,137) (14,524,787) (20,170,850) (18,690,891)
Capital Assets, net18,324,909$ 18,419,882$ 17,943,665$ 15,812,699$ 36,268,574$ 34,232,581$
Long-term debt.
At the end of the current fiscal year, the City had a total long-term debt outstanding of
$7,236,786.
The business-type activities long term debt is from State Revolving Loans with low interest rates related
to Wastewater System improvements. 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 $5.5 Capital Improvement Revenue Note issued to
finance a City Hall project, a Fire Station, the Main Wastewater Treatment Plant Building Refurbishment
and other capital projects throughout the City.
- 38 -
City of Cape Canaveral, Florida
Management’s Discussion and Analysis
Additional information on the City of Cape Canaveral’s long-term debt can be found on pages 66 – 68of
this report.
Governmental ActivitiesBusiness-type ActivitiesTotal
201520142015201420152014
Revenue note4,991,000$ 5,500,000$ -$ -$ 4,991,000$ 5,500,000$
State revolving loans- - 2,245,786 1,423,228 2,245,786 1,423,228
$ 5,500,0004,991,000$ 2,245,786$ 1,423,228$ 7,236,786$ 6,923,228$
Economic Factors and Next Year’s Budgets and Rates
The unemployment rate decreased from 6.4% in the prior year to 5.4%.
The real estate market continues to trend upward. Property values for Calendar Year 2015
showed an increase of 8.4%. The median home sales price rose to $148,678 up from $137,157
at the end of 2014.
Due to accelerated hiring, Cape Canaveral, as well as Brevard County, will continue to show
improvement due to increased industry growth at the Kennedy Space Center and Canaveral
Air Force Station; increased Aerospace and High Technological Manufacturing Companies
such as Blue Origin, Space X, Embraer S.A. and Northrup Grumman’s expansion at the
Melbourne International Airport; and numerous service-oriented companies countywide.
In an effort to take advantage of the opportunities provided by the City’s proximity to Port
Canaveral, Cape Canaveral Air Force Station, Kennedy Space Center, two International
Airports, and Orlando, the City is actively pursuing economic development/redevelopment
through its creation of the Community Redevelopment Agency (CRA).
The City has and will continue to increase its revenue stream. An increase to the wastewater
and reclaimed water rates in October 2014 enhanced revenue. The City maintained Ad
valorem taxes at fiscal 2014 rates in the 2015 budget by implementing a millage rate that
represented the rolled-back rate.
All of these factors were considered in preparing the City’s budget for the 2016 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the City of Cape Canaveral’s finances.
Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Office of the Administrative/Financial Services Director, 105 Polk
Avenue, Cape Canaveral, FL 32920.
- 39 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 40 -
Basic Financial Statements
- 41 -
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
Primary Government
GovernmentalBusiness-Type
ActivitiesActivitiesTotal
Assets
Equity in pooled cash and investments10,025,055$ 2,023,873$ 12,048,928$
Receivables, net 322,088- 322,088
Due from other governments474,521796,331 1,270,852
Inventories and prepaid items14,241- 14,241
Restricted assets:
Equity in pooled cash and investments22,579 194,354 216,933
Capital assets:
Total capital assets, not being depreciated8,212,5043,483,63911,696,143
Total capital assets, being depreciated, net of
accumulated depreciation10,112,40514,460,02624,572,431
Total Assets
$ 20,958,22329,183,393$ 50,141,616$
Liabilities
Accounts payable and accrued liabilities511,116$ 310,559$ 821,675$
Unearned revenue and deposits543,785- 543,785
Payable from restricted assets:
Accrued interest payable- 18,775 18,775
Zoning escrow22,579 - 22,579
oncurrent liabilities:
N
Due within one year:
Long-term deb511,000140,717 651,717
t
Compensated absences payable172,35875,558 247,916
Due in more than one year:
Long-term deb4,480,0002,105,069 6,585,069
t
Compensated absences payable43,09018,889 61,979
et OPEB obligation30,29019,710 50,000
N
Total Liabilities
$ 2,689,2776,314,218$ 9,003,495$
Net Position
et investment in capital assets13,333,909$ 15,697,879$ 29,031,788$
N
Restricted for:
Community redevelopmen -21,363 21,363
t
Recycled products49,712 - 49,712
Tree mitigatio -130,376 130,376
n
Debt service361,995 111,591473,586
Public safety48,892 - 48,892
Culture/recreation331,866 - 331,866
Capital expansion746,970 63,988810,958
Unrestricted7,844,0922,395,48810,239,580
Total Net Position
$ 18,268,94622,869,175$ 41,138,121$
The accompanying notes to financial statements
are an integral part of this statement.
- 42 -
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Net (Expense) Revenue and
Program RevenuesChanges in Net Position
Primary Government
OperatingCapital
Charges forGrants andGrants andGovernmentalBusiness-type
ExpensesServicesContributionsContributionsActivitiesActivitiesTotal
Functions/Programs
Governmental activities
General government 1,506,243$ 20,552$ -$ -$ (1,485,691)$ -$ (1,485,691)$
Public safet4,533,243614,254- - (3,918,989) - (3,918,989)
y
Transportatio982,291- 303,353 13,886 (665,052) - (665,052)
n
Physical environmen1,039,7471,050,377- - 10,630 - 10,630
t
Culture/recreatio570,49179,947- - (490,544) - (490,544)
n
Interest on long-term deb104,385- - - (104,385) - (104,385)
t
Total governmental activities 1,765,1308,736,400 303,353 13,886 (6,654,031) - (6,654,031)
Business-type activities
Wastewate2,873,5153,732,961 - - - 859,446 859,446
r
Stormwate 580,543526,065 - - - 54,478 54,478
r
Total business-type activities 3,399,580 4,313,504 - - - 913,924 913,924
Total primary government$ 6,078,63412,135,980$ 303,353$ 13,886$ (6,654,031) 913,924 (5,740,107)
General revenues
Property taxes 3,280,632- 3,280,632
Utility and franchise taxes 2,385,223- 2,385,223
Intergovernmental revenues, unrestricted 940,785- 940,785
Investment income 80,68726,314107,001
Miscellaneous revenues 70,6684,688 75,356
Capital contribution 3,134,739(3,134,739) -
s
Transfers i 575,000(575,000) -
n
Transfers ou (4,039,139)4,039,139 -
t
Total general revenues and transfers (298,398)7,087,395 6,788,997
Change in net position 615,526433,364 1,048,890
eginning of yea22,435,81117,653,420 40,089,231
Net position,
br
Net position, end of yea
$ 18,268,94622,869,175$ 41,138,121$
r
The accompanying notes to financial statements
are an integral part of this statement.
- 43 -
italGovernmentalGovernmental
$ 10,047,634 322,088 5,190474,521 91,034 14,241$ 10,949,518$ 511,116 22,579 543,785
91,034$ 1,168,514$ 14,241 91,034 130,376 49,712 361,995 21,363 48,892
331,866 746,970 3,739,961 108,718 78,533 3,113 1,998 3,585,562$ 9,781,004
466,670
FundFundFundFundsFunds
orTotal
$$$$$$
$ 1,134,762$ 1,139,952$ 9,111$ 9,111 48,892 331,866 746,970 3,113$
1,130,841
- - - - - -$ - - -
- - - - - - - -
j
riseNonma
$ 237,595$ 237,595$ 235,597$ 235,597 1,998$ 1,998
- - - - - - 91,034-$ - -
- - - - - - - - - - -
- -
p
e CanaveralEnter
p
GeneralCRACa
The accompanying notes to financial statements
CITY OF CAPE CANAVERAL, FLORID
A$ 93,047 21,363
$ 114,410$ 114,410$ 2,013$ 21,363
- - - -22,579-543,785-91,034- -49,712- - - - - - -
- - - - -are an integral part of this statement.
$ -
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
BALANCE SHEET
p
Ca
- 44 -
8,560,867322,088469,33191,03414,241Total assets9,457,561264,395Total liabilities830,75914,241130,376361,995466,6703,739,961108,71878,5333,585,562Total fund balances8,626,802
-------
Capital equipment renewal and replacemen
t
Accounts payable and accrued liabilitie
Equity in pooled cash and investment
s
s
Unearned revenue and deposit
Long-term interfund advanc
Community redevelopmen
e
s
Due from other government
Inventories and prepaid item
s
t
Advances from other fund
s
Inventories and prepaid
s
s
Advances to other fund
Recreation expansio
s
n
Recycled product
Culture/recreatio
Capital expansioCapital expansio
s
Police expansio
n
nn
n
Tree mitigatio
n
Restricted for:
NonspendablePublic safetPublic safet
Debt Servic
Fund Balances
New facilit
Committed to
Zoning escro
yy
e
w:
y
:
Assigned to
Receivable
Unassigne
:
s
d
Liabilities
Assets
CITY OF CAPE CANAVERAL, FLORID
A
RECONCILIATION OF THE BALANCE SHEET OF THE
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITIO
N
SEPTEMBER 30, 2015
Fund Balances - Total Governmental Funds
$9,781,004
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 assets23,040,622
Accumulated depreciation(4,715,713)
18,324,909
Long-term liabilities are not due and payable in the current
eriod, and therefore, are not reported in the funds. All liabilities,
p
oth current and non-current, are reported in the statement
b
of net position. Long term liabilities at year end consist of:
(4,991,000)
Long-term deb
t
Compensated absences payable(215,448)
Net OPEB obligation(30,290)
(5,236,738)
Net Position of Governmental Activities
$22,869,175
The accompanying notes to financial statements
are an integral part of this statement.
- 45 -
(3,464,164) (1,003,625)
$ 3,280,632 303,353 324,649 80,412 16,046 80,687 129,237 8,837,430
734,258 468,430 509,000 104,385 12,301,594 12,567 12,542$ 9,781,004
2,327,660 1,107,604 1,187,150 1,497,117 4,270,231 1,039,747 3,678,426 4,467,764
3,476,706 9,768,462
Governmenta
l
FundsFunds
Tota
l
$$
(159,097) (1,458)
320
$ 58,663 2,730 11,761 5,115 78,589 27,485 3,498
3,134,739206,703 237,686 3,263,500425,000 423,542 264,445 866,396$ 1,130,841
Governmenta
- - - - - - - -
- - -
l
EnterpriseNonmajo
r
(3,134,739) (126,763)
128,761$ 1,998
3,134,739 3,263,500
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
$ - - -981,464126,140- - - - -
- - - - - - - - - -
- -
Capita
Fun
l
d
FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
The accompanying notes to financial statements
CITY OF CAPE CANAVERAL, FLORIDA
(2,167) (2,167)9,091,797(62,968)
are an integral part of this statement.
126,1401,443,73525,897323,23913,745 39,642 86,498 84,331
$ 21,363
Cape Canavera
303,353-2,327,660-Licenses and permits324,649-1,187,150-Fines and forfeitures77,682-Impact fees15,726-68,926-124,122-4,266,733-734,258-1,039,747-468,430- - -Proceeds
from sale of assets12,567-Transfers in779,264-
$ -
l
Fun
GeneralCR
d
A
- 46 -
(256,826)(1,000,000)(208,169)(464,995)
3,221,969509,000104,3858,626,802
Total revenues8,632,701Total expenditures8,889,527
Fun
d
Total other financing sources (uses
)
beginning of yea
) of revenues
r
Net change in fund balances
Local option motor fue
end of yea
sources
r
Physical environmen
l
Utility and franchisGeneral governmen
t
e
t
Charges for service
over expenditures
Investment earning
Culture/recreatio
Intergovernmenta
s
n
s
y
Excess (deficienc
l
Transportatio
g
Fund balances,Fund balances,
Public safet
n
Debt service:
Other financin
Miscellaneou
Capital outla
Transfers ou
endituresy
s
y
t
Principa
Propert
Interes
Current:
l
Revenues
y
Taxes:
t
p
Ex
CITY OF CAPE CANAVERAL, FLORID
A
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUND
S
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Net Change in Fund Balances - Total Governmental Funds
$12,542
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 3,678,426
Less: Current year depreciation(629,027)
3,049,399
Property and equipment contributed from the Enterprise Capital
fund to the Enterprise funds(3,134,739)
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.(9,633)
Note and 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. Repaymen
t
of note and loan principal is an expenditure in the governmental
funds, but the repayment of debt reduces the long-term liabilities in
the statement of net position and consist of the following:
509,000
Principal repayment of general long-term deb
t
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 12,796
Net OPEB obligation (6,001)
6,795
Change in Net Position of Governmental Activities
$433,364
The accompanying notes to financial statements
are an integral part of this statement.
- 47 -
CITY OF CAPE CANAVERAL, FLORID
A
STATEMENT OF REVENUES, EXPENDITURES, AN
D
CHANGES IN FUND BALANCES - BUDGET TO ACTUA
L
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Budgeted Amounts
Variance
Positive
OriginalFinalActual
(Negative)
Revenues
Taxes:
Property3,231,920$ 3,221,969$ 3,221,969$ -$
Local option motor fuel288,072 303,353 303,353 -
Utility and franchise2,296,649 2,327,660 2,327,660 -
Intergovernmental 1,222,996 981,464 981,464 -
Licenses and permits304,199 324,649 324,649 -
Charges for services 1,170,772 1,187,150 1,187,150 -
Fines and forfeitures78,600 77,682 77,682 -
Impact fees42,816 15,726 15,726 -
Investment earnings 83,401 68,926 68,926 -
Miscellaneous93,900 124,122 124,122 -
Total revenues8,813,325 8,632,701 8,632,701 -
Expenditures
Current:
General government2,353,044 1,443,735 1,443,735 -
Public safety4,523,621 4,266,733 4,266,733 -
Transportation800,075 734,258 734,258 -
Physical environment1,019,172 1,039,747 1,039,747 -
Culture/recreation505,270 468,430 468,430 -
Capital outlay907,860 323,239 323,239 -
Debt service:
Principal509,000509,000509,000 -
Interest- 104,385104,385 -
Total expenditures10,618,042 8,889,527 8,889,527 -
Excess (deficiency) of revenues
over expenditures
(256,826)(1,804,717) (256,826) -
Other financing sources
Proceeds from sale of assets 40,000 12,567 12,567 -
Transfers in788,230 779,264 779,264 -
Transfers out(2,800,000) (1,000,000) (1,000,000) -
Total other financing sources(1,971,770) (208,169) (208,169) -
Net change in fund balances
(464,995)(3,776,487) (464,995) -
Fund balances, 9,091,7979,091,797 9,091,797 -
beginning of yea
r
Fund balances,
end of yea
$ 8,626,8025,315,310$ 8,626,802$ -$
r
The accompanying notes to financial statements
are an integral part of this statement.
- 48 -
CITY OF CAPE CANAVERAL, FLORID
A
STATEMENT OF REVENUES, EXPENDITURES, AN
D
CHANGES IN FUND BALANCES - BUDGET TO ACTUA
L
CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY FUN
D
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Budgeted Amounts
Variance
Positive
OriginalFinalActual
(Negative)
Revenues
Taxes:
Property-$ -$ -$ -$
Local option motor fuel- - - -
Utility and franchise- - - -
Intergovernmental 125,330 126,140 126,140 -
Licenses and permits- - - -
Charges for services - - - -
Fines and forfeitures- - - -
Impact fees- - - -
Investment earnings 501 - - -
Miscellaneous- - - -
Total revenues125,831 126,140 126,140 -
Expenditures
Current:
General government26,239 110,228 25,897 84,331
Public safety- - - -
Transportation- - - -
Physical environment- - - -
Culture/recreation- - - -
Capital outlay10,962 13,745 13,745 -
Debt service:
Principal8,966 - - -
Interest2,167 - - -
Total expenditures48,334 123,973 39,642 84,331
Excess (deficiency) of revenues
over expenditures
2,16777,497 86,498 84,331
Other financing sources
Proceeds from sale of assets - - - -
Transfers in- - - -
Transfers out(113,694) (2,167) (2,167) -
Total other financing sources(113,694) (2,167) (2,167) -
Net change in fund balances
-(36,197) 84,331 84,331
Fund balances, (62,968)(62,968) (62,968) -
beginning of yea
r
Fund balances,
end of yea
$ (62,968)(99,165)$ 21,363$ 84,331$
r
The accompanying notes to financial statements
are an integral part of this statement.
- 49 -
CITY OF CAPE CANAVERAL, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2015
Business-type Activities - Enterprise Funds
Wastewater FundStormwater FundTotal
Assets
Current assets:
Equity in pooled cash and investments 1,177,481$ 846,392$ 2,023,873$
687,977108,354796,331
Due from other government
s
Restricted assets:
Equity in pooled cash and investments 191,983 2,371 194,354
Total current assets 2,057,441957,1173,014,558
Capital assets:
Total capital assets, not being depreciated 3,299,085184,5543,483,639
Total capital assets, being depreciated, net of
accumulated depreciation 12,540,9671,919,05914,460,026
Capital assets, net15,840,0522,103,61317,943,665
Total Assets
$ 3,060,73017,897,493$ 20,958,223$
Liabilities
Current liabilities:
Accounts payable and accrued liabilities 302,584$ 7,975$ 310,559$
Current portion of compensated absences 52,71222,84675,558
Current portion of long-term debt 140,717- 140,717
Liabilities payable from current restricted assets:
Accrued interest payable 16,4042,37118,775
Total current liabilities 512,41733,192545,609
oncurrent liabilities:
N
Long-term portion of compensated absences 13,1785,71118,889
Long-term debt payable after one year 1,722,420382,6492,105,069
et OPEB obligation 18,4171,29319,710
N
Total noncurrent liabilities 1,754,015389,6532,143,668
Total Liabilities
$ 422,8452,266,432$ 2,689,277$
Net Position
Net investment in capital assets13,976,915$ 1,720,964$ 15,697,879$
Restricted for:
Debt service111,591 - 111,591
Capital expansion63,988 - 63,988
1,478,567916,9212,395,488
Unrestricte
d
Total Net Position
2,637,88515,631,061 18,268,946
$$$
The accompanying notes to financial statements
are an integral part of this statement.
- 50 -
CITY OF CAPE CANAVERAL, FLORID
A
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITIO
N
PROPRIETARY FUND
S
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Business-type Activities - Enterprise Funds
Wastewater FundStormwater FundTotal
Operating revenues
Charges for sales and services:
Wastewater charges3,732,961$ -$ 3,732,961$
Stormwater charges- 580,543580,543
Miscellaneous4,688 - 4,688
Total operating revenues3,737,649 580,543 4,318,192
Operating expenses
Operating and maintenance:
Personal services1,172,699218,3651,391,064
Contractual services83,91851,023134,941
Repairs and maintenance446,676122,900569,576
Materials and supplies249,5374,492254,029
Other operating and maintenance- 12,59712,597
Depreciation889,705114,3171,004,022
Total operating expenses2,842,535 523,694 3,366,229
Operating income
56,849895,114 951,963
Nonoperating revenues (expenses)
Investment earnings19,9756,33926,314
Loss on sale or disposal of assets(2,227) - (2,227)
Interest expense(28,753) (2,371) (31,124)
Total nonoperating revenues (expenses)(11,005) 3,968 (7,037)
Income before contributions and transfers
60,817884,109 944,926
Capital contributions2,837,745296,9943,134,739
Transfers in575,000 - 575,000
(283,066)(3,756,073) (4,039,139)
Transfers ou
t
Change in net position
74,745540,781 615,526
Total net position,
beginning of year15,090,2802,563,14017,653,420
Total net position,
end of yea
$ 2,637,88515,631,061$ 18,268,946$
r
The accompanying notes to financial statements
are an integral part of this statement.
- 51 -
CITY OF CAPE CANAVERAL, FLORID
A
STATEMENT OF CASH FLOW
S
PROPRIETARY FUND
S
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Business-type Activities - Enterprise Funds
Wastewater FundStormwater FundTotal
Cash flows from operating activities
Cash received from customers 3,704,244$ 577,797$ 4,282,041$
Cash paid to suppliers (606,674) (206,193) (812,867)
Cash paid to employees (1,184,939) (221,860) (1,406,799)
Net cash provided by operating activities 1,912,631 149,744 2,062,375
Cash flows from noncapital financing activities
Transfers out(3,181,073) (283,066) (3,464,139)
Net cash used in noncapital financing activities(3,181,073) (283,066) (3,464,139)
Cash flows from capital and related financing activities
Principal payments on capital debt (869,057) - (869,057)
Proceeds from issuance of capital debt1,432,821 251,825 1,684,646
Interest paid (28,753) (2,371) (31,124)
Proceeds from sale of capital assets6,720 - 6,720
Acquisition and construction of capital assets (2,227) - (2,227)
Net cash provided by capital and related
financing activities 539,504 249,454 788,958
Cash flows from investing activities
Interest received 19,975 6,339 26,314
6,33919,975 26,314
Net cash provided by investing activitie
s
Net increase (decrease) in cash and cash equivalents
122,471(708,963) (586,492)
Cash and cash equivalents,
beginning of year 2,078,427 726,292 2,804,719
Cash and cash equivalents,
end of year
$ 848,7631,369,464$ 2,218,227$
Reconciliation of operating income to net
cash provided by operating activities
Operating income 895,114$ 56,849$ 951,963$
Adjustment to reconcile operating income to
net cash provided by operating activities:
Depreciation 889,705 114,317 1,004,022
Decrease (increase) in certain assets:
Accounts receivable (33,405) (2,746) (36,151)
Increase (decrease) in certain liabilities:
Compensated absences payable (14,816) (3,870) (18,686)
Accounts payable and accrued liabilities 172,909 (17,552) 155,357
Accrued interest payable548 2,371 2,919
Net OPEB liability 2,576 375 2,951
Net cash provided by operating activities 1,912,631$ 149,744$ 2,062,375$
Noncash investing, capital and financing activities:
Contributions of capital assets from capital funds2,837,745$ 296,994$ 3,134,739$
Capitalized interest5,924$ 1,045$ 6,969$
The accompanying notes to financial statements
are an integral part of this statement.
- 52 -
Notes to Financial Statements
- 53 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Summary of Significant Accounting Policies:
(1)
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.
Reporting entity
(a)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.
Blended component unit
(b)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 and do not issue separate financial statements:
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.
Government-wide and fund financial statements
(c)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 non-
exchange 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.
- 54 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Summary of Significant Accounting Policies:
(1)(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 non-exchange 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.
Measurement focus, basis of accounting, and financial statement presentation
(d)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.
- 55 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Summary of Significant Accounting Policies:
(1)(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.
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.
Capital Projects Funds
These funds account for resources accumulated and payments made
for the acquisition of land and construction of major capital facilities related to governmental
funds.
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.
- 56 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Summary of Significant Accounting Policies:
(1)(Continued)
Budgets and budgetary accounting
(e)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:
th
(i)On or before June 30, 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.
Cash and cash equivalents
(f)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.
Receivables
(g)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, 2015.
Inventories and prepaid items
(h)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.
Restricted assets
(i)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.
- 57 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Summary of Significant Accounting Policies:
(1)(Continued)
Capital assets
(j)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:
AssetsYears
Buildins and imrovements30 -50
gp
Imrovements other than buildins3 -20
pg
Machiner and euimen3 -20
yqpt
Infrastructure 30 -50
Zoning escrow
(k)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.
Compensated absences
(l)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.
Unearned revenue and deposits
(m)Unearned revenue and deposits of $543,785 are recorded
on the governmental fund balance sheet. Of this balance, $12,022 represents local business tax
receipts collected in advance and $531,763 represents 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.
Long-term obligations
(n)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.
Fund balance
(o)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.
- 58 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Summary of Significant Accounting Policies:
(1)(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.
General fund balance policy
(p)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.
Use of estimates
(q)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.
Reconciliation of Government-Wide and Fund Financial Statements:
(2)
Reconciliation of the balance sheet of the governmental funds to the statement of net
(a)
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.
Reconciliation of the statement of revenues, expenditures, and changes in fund balances
(b)
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.
- 59 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Property Tax Calendar:
(3)
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, 2014 was 3.7246
mills (3.6580 for general government and 0.0666 for the library fund).
The property tax calendar is as follows:
Valuation Date January 1
Property Appraiser prepares the assessment roll with values as of January 1, July 1
submits this preliminary roll for approval by the State and notifies each taxing
authority of their respective valuations.
City Council adopts a budget and ad valorem tax millage rate for the coming Septembe
r
fiscal year.
Property Appraiser certifies the assessment roll and all real and tangible November 1
personal property taxes are due and payable (Levy date).
A Notice of Taxes is mailed to each property owner on the assessment roll. November 1
Taxes may be paid November through March, with the following applicable
discounts:
Month Paid Discount Percent
November 1, 2014
November 4 through
December 3 March 31, 2015
January 2
February 1
March 0
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 April and May
property taxes are advertised.
Tax certificates are sold on all real estate parcels with unpaid real property May 31
taxes (Lien date).
A court order is obtained authorizing the seizure and sale of personal property August 29
if the taxpayer fails to pay the delinquent personal property taxes.
- 60 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Deposits and Investments:
(4)
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, 2015, 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, 2015, the City had the following deposits and investments included in cash and
cash equivalents:
Fair Value at
Credit
September 30,
Investment Type Maturity
2015 Rating
Governmen-wide:
t
Cash in banks $3,077,231Less than 1 N/A
year
Florida Division of Treasury –Special Purpose 9,099,7022.67 years A+f
Investment Account
State Board of Administration –Local 88,92829 days AAAm
Government Investment Pool – Prime Fund
Total Governmen-wide deposits and
t
$ 12,265,861
investments
- 61 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Deposits and Investments:
(4) (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 City 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, 2015, the fair value factor for the SPIA was 1.0013. 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, 2015, all investments of the City are held in the pooled
investment accounts administered by the State of Florida.
- 62 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Receivables:
(5)
At September 30, 2015, the City's receivables consist of the following:
Collected, not
yet Remitted Allowance for
to City by UnbilledDoubtfulReceivables,
Receivables Servicer Receivables Accounts net
Governmental Activities:
General Fun $ 104,405$110,780$109,220$(2,317) $322,088
d
104,405 110,780 109,220 (2,317) 322,088
Total Governmental Activities
Business-Type Activities:
Wastewate 67,682325,695301,769(7,169) 687,977
r
Stormwate 14,50851,03443,872(1,060) 108,354
r
Total Business-Type Activities 82,190 376,729 345,641 (8,229) 796,331
$ 186,595 $ 487,509 $ 454,861 $ (10,546) $ 1,118,419
Totals
Interfund Loans and Transfers:
(6)
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. At September 30, 2015, individual fund interfund receivables and payables for
the primary government are comprised of the following:
Due From Due To
Other Other
Funds Funds
General Fun
d
Cape Canaveral CRA Fun$91,034$-
d
Cape Canaveral CRA Fund
- 91,034
General Fund
$ 91,034
$ 91,034
Total—All Funds
- 63 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Interfund Loans and Transfers:
(6) (Continued)
For the year ended September 30, 2015, the composition of interfund transfers is as follows:
Transfers Out
Governmental Activities:
General Fun
d
Capital Construction Fun$425,000
d
Wastewater Fun575,000
d
Cape Canaveral CRA Fun
d
General Fun2,167
d
onmajor Governmental Funds:
N
School Crossing Guard Fund
General Fun1,458
d
Business-Type Activities:
Wastewater Fun
d
General Fun756,073
d
Enterprise Capital fun3,000,000
d
Stormwater Fun
d
General Fun19,566
d
263,500
Enterprise Capital Fund
5,042,764
Transfers In
Governmental Activities:
General Fun
d
School Crossing Guard Fun1,458
d
Cape Canaveral CRA Fun2,167
d
Wastewater Fun756,073
d
Stormwater Fun19,566
d
Enterprise Capital Fund
Wastewater Fun3,000,000
d
Stormwater Fun263,500
d
onmajor Governmental Funds:
N
Capital Construction Fun
d
General Fun425,000
d
Business-Type Activities:
Wastewater Fund
General Fun575,000
d
$ 5,042,764
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 $3,134,739 in capital outlay expenditures in the Enterprise Capital
Fund for construction in progress, equipment, and other capital improvements, of which $2,837,745 and
$296,994 was contributed to the Wastewater Fund and Stormwater Fund, respectively.
- 64 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Capital Assets:
(7)
For the fiscal year ended September 30, 2015, capital asset activity was as follows:
BeginningEnding
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land $7,248,237$- $- $ 7,248,237
Construction in progress 740,105224,162- 964,267
Total capital assets, not being
7,988,342
224,162- 8,212,504
depreciated
Capital assets, being depreciated:
Buildins and imrovements 4,711,61039,421- 4,751,031
gp
Machinery and equipmen 2,950,180154,379(89,051) 3,015,508
t
Infrastructure 6,935,854125,725- 7,061,579
14,597,644319,525 (89,051) 14,828,118
Total capital assets, being depreciated
Accumulated depreciation for:
Buildings and improvements (961,293)(148,375)- (1,109,668)
Machinery and equipmen (1,515,549)(192,323)79,418 (1,628,454)
t
Infrastructure (1,689,262)(288,329)- (1,977,591)
Total accumulated depreciation
(4,166,104)(629,027)79,418 (4,715,713)
Total capital assets being depreciated,
net of accumulated depreciation 10,431,540(309,502)(9,633) 10,112,405
Governmental activities capial assets,
t
$ 18,419,882$ (85,340)$ (9,633) $ 18,324,909
ne
t
Business-te activities:
yp
Capital assets, not being depreciated:
Land $351,084$- $- $ 351,084
Construction in progress 1,707,7282,816,054(1,391,227) 3,132,555
Total capital assets, not being
2,058,8122,816,054(1,391,227) 3,483,639
depreciated
Capital assets, being depreciated:
Buildings and improvements 4,143,1241,072,371- 5,215,495
Machiner and euimen 1,685,981320,02180,391 1,925,611
yqpt()
Infrastructure 22,449,569324,488- 22,774,057
Total capital assets, being
28,278,6741,716,880 (80,391) 29,915,163
depreciated
Accumulated dereciation for
p
Buildings and improvements (1,975,348)(107,266)- (2,082,614)
Infrastructure (668,558)(99,322)73,672 (694,208)
Machinery and equipmen (11,880,881)(797,434)- (12,678,315)
t
Total accumulated depreciation
(14,524,787)(1,004,022)73,672 (15,455,137)
Total capital assets being depreciated,
net of accumulated depreciation 13,753,887712,858(6,719) 14,460,026
Business-type activities capital assets,
$ 15,812,699$ 3,528,912$ (1,397,946) $ 17,943,665
net
- 65 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Capital Assets:
(7) (Continued)
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General governmen $15,921
t
Public safety 263,012
Transportation 248,033
Culture and recreation 102,061
$ 629,027
Total depreciation expense-governmental activities
Business-type activities:
Wastewate $889,705
r
Stormwate 114,317
r
$ 1,004,022
Total depreciation expense-business-type activities
Long-term Debt:
(8)
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 of $1,504,000, (2) the City’s local government half-cent sales tax of $490,000, (3) the
guaranteed entitlement portion of the state revenue sharing funds of $252,100, and (4) franchise fees of
$640,000. These annually pledged revenues collectively support the annual debt repayment of $612,124
which comprises of $594,562 in principal and $17,562 in interest through the maturity date. The pledge of
the pledged revenues would be continuing and cumulative until all amounts under the Series 2014 Note
shall have been paid. 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
$4,991,000.
- 66 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Long-term Debt:
(8) (Continued)
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.
The City's SRF loans outstanding at September 30, 2015 are summarized as follows:
2.97% State Revolving Fund promissory note payablein the amount of $2,198,258;
with semiannual loan payments of $72,998 beginning October 15, 1996 through
2017; secured by the wastewater utility revenue of the City $ 212,648
1.69% State Revolving Fund promissory note payablein the amount of $2,033,138;
with semiannual loan payments of $173,207 beginning June 15, 2018 through
2024; secured by the net wastewater and stormwater utility revenue of the City per
Section 4 of Ordinance 01-2013 2,033,138
Total State Revolving Fund loans 2,245,786
Less: current maturities 140,717
$ 2,105,069
Total business-type activities long-term debt
Annual debt service requirements to maturity for the City’s revenue bonds and notes are as follows:
Governmental ActivitiesBusiness-Tpe Activities
y
Year Ending
September 30, Principal InterestPrincipalInterest Total
2016 $ 511,000 $ 94,236$140,717$5,278 $ 751,231
2017 521,000 83,96871,9291,068 677,965
2018 532,000 73,9416,567166,640 779,148
2019 543,000 62,795313,68032,734 952,209
2020 554,000 51,879318,97227,442 952,293
2021-2025 2,330,000 93,8881,393,92133,513 3,851,322
$ 4,991,000 $ 460,707 $ 2,245,786 $ 266,675 $ 7,964,168
Totals
- 67 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Long-term Debt:
(8) (Continued)
B. Change in Long-term Liabilities
Long-term liability activity for the year ended September 30, 2015, was as follows:
inninEndinDue Within
Be
ggg
Balance Increases Decreases Balance One Year
Governmental Activities
Series 2014 Note $ 5,500,000$- $(509,000)$ 4,991,000 $511,000
Compensated absences payable 228,244139,475(152,271) 215,448 172,358
et OPEB obligation 24,2896,001- 30,290 -
N
$ 5,752,533 $ 145,476 $ (661,271)$ 5,236,738
$ 683,358
Total Governmental Activities
Business-Tpe Activities
y
State revolving loans $ 1,423,228$1,691,615$(869,057)$ 2,245,786 $140,717
Compensated absences payable 113,13362,125(80,811) 94,447 75,558
et OPEB obligation 16,7112,999- 19,710 -
N
$ 1,553,072 $ 1,756,739 $ (949,868)$ 2,359,943
$ 216,275
Total Business-Type Activities
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.
There are no debt issues outstanding which have or will have any arbitrage rebate payable as of the report
date.
Employees' Retirement Plan:
(9)
Established with Resolution No. 2006-13 of the City Council, which is responsible for amending the plan
provisions and contribution requirements, 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. Established with Resolution No. 2006-51 of the City Council,
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 of $16,529 were used
to reduce the City’s current period contribution requirement.
For the year ended September 30, 2015, employer and matching contributions to the defined contribution
plan were $107,452 and $34,557, respectively. As of September 30, 2015, the Plan had 31 participating
employees.
- 68 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Other Post-Employment Benefits (OPEB):
(10)
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 September 1, 2015, the date of the latest actuarial valuation, plan participation consisted of:
Active Employees48
Inactive Employees11
59
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.
- 69 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Other Post-Employment Benefits (OPEB):
(10) (Continued)
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:
2015
Fiscal Year
Valuation as
of 9/1/2015
Normal Cost (service cost for one year)$ 10,000
Amortization of Unfunded Actuarial Accrued Liability (UAAL) (1,000)
Amortization of Net OPEB Obligation 5,000
Annual Required Contribution (ARC)
14,000
Interest on Net OPEB Obligation 2,000
Adjustment to ARC (5,000)
Annual OPEB Cost (Expense)
11,000
Less: Employer Contributions Made (2,000)
Increase in Net OPEB Obligation
9,000
Net OPEB Obligation at beginning of yea 41,000
r
Net OPEB Obligation at end of yea
r
$ 50,000
- 70 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Other Post-Employment Benefits (OPEB):
(10) (Continued)
For the year ended September 30, 2015, the City’s annual OPEB cost (expense) was $11,000. The City’s
annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2015 with no applicable preceding years were as follows:
Annual Percentae of Net
g
Year Ended OPEBCity Annual OPEB OPEB
September 30, Cost Contributions Cost Contributed Obligation
2015 $ 11,000$2,00018%$ 50,000
2014 $ 11,000$3,00027%$ 41,000
2013 $ 11,000$3,00027%$ 33,000
In the Statement of Net Position, the City reports a Net OPEB Obligation of $30,290 in governmental
activities and $19,710 in business-type activities.
Funding Status and Funding Progress
The funding status of the plan as of September 1, 2015, the
most recent actuarial valuation date, was as follows:
2015
Fiscal Year
Valuation as
of 9/1/2015
Actuarial Accrued LiabilitAAL$40,000
y()
Actuarial Value of Plan AssetsN/A
Unfunded Actuarial Accrued Liability (UAAL)40,000
Funded Ratio (Actuarial Value of Plan Assets/AAL)N/A
Covered Payroll (Active Plan Members)$2,289,000
UAAL as a Percentage of Covered Payroll 1.7%
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.
- 71 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Other Post-Employment Benefits (OPEB):
(10) (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 9/1/2015
Cost Method Projected Unit Credi
t
UAAL Amortization:
Method Level Dollar Payment
Open/Closed Open
Remaining Amortization Period10Years
Asset Valuation
N/A
Actuarial Assumptions:
Investment Earnings 4.00%
Salary Increases 2.50%
Inflation Rate 2.75%
Healthcare Inflation Rate10.00% Initial
5.00% Ultimate
Legal Matters:
(11)
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.
Commitments and Contingencies:
(12)
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.
- 72 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Encumbrances:
(13)
Encumbrances are reported in the fund balance classification which is going to fund the costs. At
September 30, 2015, no funds had any encumbrances outstanding.
Risk Management:
(14)
The City 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.
Subsequent Events:
(15)
On November 24, 2014, the City secured a State Revolving Loan Fund with the Florida Department of
Environmental Protection in the amount of $2,288,900, in addition to the other business-type activities
long-term debt listed in Note (8). However, the City did not begin the related projects for which the loan
was obtained, and therefore, did not draw down any of the loan funds during the year ended
September 30, 2015, due to delays in other projects within the City. The City expects to begin drawing
the funds in January 2016 and to begin semi-annual loan payments of $66,893 in January 2017.
Recent Accounting Pronouncements:
(16)
The Governmental Accounting Standards Board (“GASB”) has issued several pronouncements that have
effective dates that may impact future financial statements. Listed below are pronouncements with
required implementation dates effective for subsequent fiscal years that have not yet been implemented.
Management has not currently determined what, if any, impact implementation of the following will have
on the City’s financial statements:
(a)GASB issued Statement No. 72, Fair Value Measurement and Application, in February 2015,
which addresses accounting and financial reporting issues related to fair value measurements,
specifically that the definition of fair value is the price that would be received to sell and asset
or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. GASB 72 provides guidance for determining a fair value measurement for
financial reporting purposes and for applying fair value to certain investment and disclosures
related to all fair value measurements. The provisions in GASB 72 are effective for fiscal
years beginning after June 15, 2015.
(b)GASB issued Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other
than Pension Plans, in June 2015, which establishes new accounting and financial reporting
requirements for governments whose employees are provided with OPEB. GASB 73 is
intended to improve the usefulness of information about postemployment benefits other than
pensions included in the general purpose external financial reports of state and local
governmental OPEB plans for making decisions and assessing accountability. The
requirements of GASB 74 are effective for fiscal years beginning after June 15, 2016.
- 73 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Recent Accounting Pronouncements:
(16) (Continued)
(c)GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions, in June 2015, which establishes standards for recognizing and
measuring liabilities, deferred outflows of resources, deferred inflows of resources, and
expense/expenditures. GASB 75 seeks to improve accounting and financial reporting by state
and local governments for postemployment benefits other than pensions. The provisions in
GASB 75 are effective for fiscal years beginning after June 15, 2017.
(d)GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles
for State and Local Governments, in June 2015, which supersedes GASB Statement No. 55.
GASB 76 reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses
the use of authoritative and nonauthoritative literature in the event that the accounting
treatment for a transaction or other event is not specified within a source of authoritative
GAAP. The provisions in GASB 76 are effective for periods beginning after June 15, 2015.
(e)GASB issued Statement No. 77, Tax Abatement Disclosures, in August 2015. GASB 77
requires governments that enter into tax abatement agreements to disclose the following
information about the agreements: (1) brief descriptive information, such as the tax being
abated, the authority under which tax abatements are provided, eligibility criteria, the
mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of
commitments made by tax abatement recipients; (2) the gross dollar amount of taxes abated
during the period; and (3) commitments made by a government, other than to abate taxes, as
part of a tax abatement agreement. The provisions in GASB 77 are effective for periods
beginning after December 15, 2015.
- 74 -
Required Supplementary Information
- 75 -
$1.7%$2.2%$2.3%$2.7%
Covered Payrol
(AAL)UnfundedUAAL as a
Value of Frozen AALFundedCovered Percentage o
l
Date(a)(b)(b-a)(a / b)(c)((b-a) / c)
f
$ 0.00%2,289,000$ 0.00%2,029,000$ 0.00%2,031,000$ 0.00%2,087,000
(UAAL)RatioPayrol
l
(2) This data is reported for the three most recent actual valuations, as only three such valuations have been performe
d
(1) For information regarding contribution percentage rates, assumptions, amortization method, etc. see Note 1
Percentage of Payrol
Contribution as a
l
AND SCHEDULE OF EMPLOYER CONTRIBUTIONS
OTHER POST-EMPLOYMENT BENEFITS
$ 14.29%0.09%$ 21.43%0.13%$ 23.08%0.14%$ 16.67%0.10%$ 9.09%0.05%
SCHEDULE OF FUNDING PROGRESS
CITY OF CAPE CANAVERAL, FLORIDA
Schedule of Funding Progress
SEPTEMBER 30, 2015
$ 40,000$ 45,000$ 46,000$ 56,000
September 30, ContributionsContributionsContribute
Actual Percentag
d
e
- 76 -
Schedule of Employer Contributions
$ 40,000$ 45,000$ 46,000$ 56,000
$ 2,000$ 3,000$ 3,000$ 2,000$ 1,000
Accrued Liabilit
y
Entry Ag
Actuaria
e
l
201514,000201414,000201313,000201212,000201111,000
Annual Require
9/1/2015-7/1/2013-11/1/2011-10/1/2008-
d
Actuaria
Valuation Asset
l
s
Year Ende
Actuaria
d
l
Combining and Individual
Fund Statements and Schedules
- 77 -
THIS PAGE INTENTIONALLY LEFT BLANK.
- 78 -
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.
Capital Project Funds
Capital Projects Funds are used to account for financial resources that are restricted, committed, or
assigned to expenditure for capital outlay, including the acquisition or construction of capital facilities or
other capital assets.
Capital Construction Fund
This Fund accounts for resources accumulated and payments made for the acquisition of land and
construction of major capital facilities related to governmental funds.
- 79 -
5,190 331,866 746,970 3,113
$ 1,134,762$ 1,139,952$ 9,111$ 9,111$ 48,892$ 1,130,841
Tota
l
$$$$$$
$ 755,268$ 755,268$ 8,298$ 8,298 746,970$ 746,970
-$ - - -
Constructio
n
Special LawCapita
l
LibraryEnforcement Trus
$ 3,151 5,115$ 8,266$ 8,266$ 8,266
t
$ -$ - - - -
9$ 193$ 193 331,866
$ 332,050$ 332,059$ 331,866
$ - - -
ecial Revenue Funds
CITY OF CAPE CANAVERAL, FLORIDANONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
$ 620$ 620
$ 3,703 30$ 3,733 3,113$ 3,113
ProtectionCrossing Guar
d
$ -
- -
PoliceFireSchoo
SEPTEMBER 30, 2015
l
- 80 -
p
S
$ 22,392$ 22,392$ 22,392$ 22,392
$ -$ -
- - - -
18,1983618,23418,23418,234
-----
Educatio
n
Accounts payable and accrued liabilitie
Equity in pooled cash and investment
s
s
Due from other government
s
Culture/recreatio
Capital expansio
n
n
Total fund balance
Committed to:
Restricted for:s
Public safetPublic safet
Fund Balances
yy
Total liabilitie
s
Total asset
Liabilities
s
Assets
(159,097)
(1,458)
$ 58,663 2,730 320 11,761 5,115 78,589 237,686 423,542
264,445
27,485 3,498 206,703 425,00017,15922,0462,691325,8086,574492,118866,396$ 1,130,841
-
- - -
Tota
l
$$
(170,148)
6,624 6,624 176,772 176,772 425,000 425,000
254,852$ 746,970
$ - - - - - - - -
- - -
LibraryEnforcement Trust Constructio
n
Special LawCapita
l
75 5,115 5,190 3,498 3,498 1,692 1,692$ 8,266
$ - - - - - - - - - - -
-
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
$ 58,663 320 63,474 57,416 6,058 6,058$ 331,866
4,491 27,485 29,931
CITY OF CAPE CANAVERAL, FLORIDANONMAJOR GOVERNMENTAL FUNDS
- - - - - - - - -
-
CHANGES IN FUND BALANCES
ecial Revenue Funds
(1,458) (1,458)
53 1,880 1,880 422
1,827$ 3,113
ProtectionCrossing Guar
- 81 -
d
$ - - - - - - - - - -
- -
PoliceFireSchoo
l
p
S
346 346 346 346
$ 22,392
$ - - - - - - - - - -
- - - -
-
Fines and forfeitures9031721,0751,075
Total revenues1,07518,234
-Licenses and permits-Impact fees-------Total expenditures-Transfers in--Debt proceeds-sources (uses)-
Educatio
n
beginning of yea
) of revenues
sources (uses)
r
Net change in fund balances
Investment earnings (losses
Total other financing
)
end of yea
r
General governmen
t
over expenditures
Culture/recreatio
n
y
Excess (deficienc
Transportatio
g
Fund balances,
Fund balances,
Public safet
Property Taxe
n
Other financin
Miscellaneou
Capital outla
s
Transfers ou
endituresy
s
y
t
Current:
Revenues
p
Ex
346 346 346 346$ 346
(Negative)
Variance
Positive
- - - - - - - - - - - -
$ - - - - -
$$
346 346 346 346 22,046$ 22,392
- - - - - - - - - - -
inalFinalActual$ - - - - -
Fire Protection
346 346 346 346 22,046$ 22,046
$ - - - - - - - - - -
- - - - - -
Budgeted Amounts
200 9,911$ 22,046
9,711 9,911 9,911 22,046
$ - - - - -
- - - - - - - - - -
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
Special Revenue Funds
g
inalFinalActualOri
SCHEDULE OF REVENUES, EXPENDITURES, AN
D
NONMAJOR GOVERNMENTAL FUNDS
CITY OF CAPE CANAVERAL, FLORID
A
1,075 1,075$ 1,075
1,075 1,075
(Negative)
Variance
Positive
$ - - - - - - - - - - - - -
- - -
SEPTEMBER 30, 2015
- 82 -
172 1,075$ 18,234
903 1,075 1,075 17,159
$ - - - - - - - - - -
- - - - -
Police Education
903 172 1,075 1,075 17,159$ 17,159
1,075
- - - - -
$ - - - - - - - - - -
Budgeted Amounts
1,0501,140Public safety1,1401,14017,15917,159
Investment earnings (losses)90
-----General government-----Transfers in--Debt proceeds---
g
Ori
beginning of yea
Excess (deficiency) of revenues
Other financing sources (uses)
r
Net change in fund balances
over (under) expenditures
Total other financing
end of yea
r
Total expenditure
Licenses and permit
s
Fines and forfeituresources (uses
Culture/recreatio
s
s
Total revenue
Intergovernmenta
)
n
s
l
Transportatio
Fund balances,Fund balances,
n
Property Taxe
Miscellaneou
Capital outla
s
Transfers ou
Expenditures
s
y
t
Impact fee
s
Current:
Revenues
6,058 6,058 6,058 6,058$ 6,058
(Negative)
-
-
Variance
Positive
- - - - - - - - - -
$ - - - - -
$$
$ 58,663 320 4,491 63,474 27,485 29,931 57,416 6,058 6,058 325,808$
331,866
inalFinalActual - - - - - - - - -
- -
Library
$ 58,663 320 4,491 63,474 33,543 29,931 63,474 325,808$ 325,808
- - - - - -
- - - - - - -
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES, AN
D
NONMAJOR GOVERNMENTAL FUNDS
CITY OF CAPE CANAVERAL, FLORID
A
$ 57,769 12,245 1,995 72,009 42,009 30,000 72,009 325,808$ 325,808
- - - - - - - - -
- - - -
Special Revenue Funds
SEPTEMBER 30, 2015
g
inalFinalActualOri
- 83 -
(422)
(422)$ (422)
422 422
(Negative)
Variance
Positive
- - - - - - - - - - -
$ - - - - -
(1,458) (1,458)
1,827 53 1,880 1,880 422 2,691$ 3,113
$ - - - - - - - - - -
- - -
School Crossing Guard
(1,458) (1,458)
1,827 53 1,880 422 422 1,458 2,691$ 2,691
$ - - - - - - - - - -
- -
Budgeted Amounts
(1,458)(1,458)
1,400581,4581,4582,6912,691
--------------
g
Ori
258,130 3,984 262,114 262,114 262,114$ 262,114
(Negative)
Variance
- - - - - - - - - - - -
$ - - - -
Positive
$$
(170,148)
6,624 6,624 176,772 425,000 425,000 254,852 22,046$ 276,898
176,772
inalFinalActual$ - - - - - - - - - - -
-
Capital Construction
(432,262) (7,262)
6,624 6,624 258,130 176,772 438,886 425,000 425,000 22,046$ 14,784
3,984
$ - - - - - -
- - - -
Budgeted Amounts
(Continued)
(870,000)$ (847,954)
(3,783,694)
2,540 18,174 2,913,694
1,944,821 19,618 1,966,979 3,984 5,728,515 5,750,673 2,913,694 22,046
$ - -
- - - - - -
g
inalFinalActualOri
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
SCHEDULE OF REVENUES, EXPENDITURES, AN
D
NONMAJOR GOVERNMENTAL FUNDS
CITY OF CAPE CANAVERAL, FLORID
A
1,692$ 1,692
1,692 1,692 1,692
(Negative)
Variance
$ - - - - - - - - - - - - -
- - - -
Positive
SEPTEMBER 30, 2015
- 84 -
Special Law Enforcement Trust
75 3,498 1,692$ 1,692
5,115 5,190 3,498 1,692
$ - - - - - - - - - -
- - - -
Special Revenue Funds
75 5,190 5,190
5,115 5,190
- - - - -
$ - - - - - - - - - -
-$ -
Budgeted Amounts
(3,498)(3,498)(3,498)
3,5233,523
Investment earnings (losses)2525
------General government----Transfers in--Debt proceeds---
g
Ori
beginning of year
Excess (deficiency) of revenues
Other financing sources (uses)
,
Net change in fund balances
Total other financing
end of yea
r
Total expenditure
Licenses and permit
s
Fines and forfeituresources (uses
over expenditures
Culture/recreatio
s
s
Total revenue
Intergovernmenta
)
n
s
l
Transportatio
Fund balances,Fund balances,
Public safetn
Property Taxe
Miscellaneou
Capital outla
s
y
Transfers ou
Expenditures
s
y
t
Impact fee
s
Current:
Revenues
Statistical Section
- 85 -
THIS PAGE INTENTIONALLY LEFT BLANK.
- 86 -
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.
ContentsPage
Financial Trends
89
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
96
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
101
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
105
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
106
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.
- 87 -
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- 88 -
Table 1
$ 9,787,271 1,207,600 6,286,692 17,281,563 9,973,299 1,746,186 2,815,412 14,534,897 19,760,570 2,953,786 9,102,104$ 31,816,460
2012201120102009200820072006
$$
$ 13,666,914 1,311,278 4,988,488 19,966,680 10,960,351 1,561,737 2,304,895 14,826,983 24,627,265 2,873,015 7,293,383$ 34,793,663
1,484,290 5,448,970 20,907,457 11,794,443 1,111,214 1,743,418 14,649,075 25,768,640 2,595,504 7,192,388
$ 13,974,197$ 35,556,532
Fiscal YearFiscal Year
$ 13,761,994 1,658,390 6,201,532 21,621,916 11,907,091 500,875 2,656,369 15,064,335 25,669,085 2,159,265 8,857,901$
36,686,251
3,902,039 3,841,426 22,048,896 11,835,287 485,322 2,806,180 15,126,789 26,140,718 4,387,361 6,647,606
$ 14,305,431$ 37,175,685
$ 16,192,759 1,243,408 5,802,065 23,238,232 11,792,700 453,489 3,335,775 15,581,964 27,985,459 1,696,897 9,137,840$ 38,820,196
1,001,741 5,800,091 22,955,245 12,774,301 428,741 2,951,894 16,154,936 28,927,714 1,430,482 8,751,985
$ 16,153,413$ 39,110,181
- 89 -
$ 15,842,742 1,162,204 5,835,996 22,840,942 12,986,307 396,648 3,237,865 16,620,820 28,829,049 1,333,852 9,298,861$ 39,461,762
20142013
423,939
12,919,8821,296,7108,219,21922,435,81114,389,4712,840,01017,653,42027,309,3531,720,64911,059,22940,089,231
13,333,9091,691,1747,844,09222,869,17515,697,879175,5792,395,48818,268,94629,031,7881,866,75310,239,58041,138,121
2015
$$
Total governmental activities net positioTotal governmental activities net positioTotal governmental activities net positio
nnn
e Canaveral, Florida
Net investment in capital assetsNet investment in capital assetsNet investment in capital assets
)
onent
(accrual basis of accountin
g
Last Ten Fiscal Years
p
Governmental activities:
Business-type activities:
Com
Primary government:
y
Net Position b
UnrestrictedUnrestrictedUnrestricted
p RestrictedRestrictedRestricted
of Ca
y
Cit
Table 2
5,018 7,575
4,278,518 381,879 854,557 384,994 11,470 6,816,642 2,765,233 139,646 2,904,879
108,247 296,663 41,615 10,221 1,746,288 3,727,507 358,764 75,000
4,168,846
$ 900,206$ 9,721,521$ 1,289,542$ 5,915,134
- - - - - - - -
-
2012201120102009200820072006
$$$$
3,425$ 2,120 1,439
$ 932,270 4,365,901 1,091,223 865,088 456,429 7,714,336 2,988,110 149,494 3,137,604$
10,851,940 506,131 917,434 49,039 37,631 25,300 1,539,094 2,938,088 348,145
79,972 3,366,205$ 4,905,299
- - - - - - -
- -
1,760
4,760,309 1,040,708 873,470 405,769 7,749,068 3,130,038 179,995 3,310,033$
520 264,618 891,088 45,677 38,129 106,000 1,346,032 2,782,834 349,243
33,184 3,165,261
$ 667,052$ 11,059,101$ 4,511,293
Fiscal YearFiscal Year
- - - - - - - -
- -
$ 186 56,219 28,803 37,656 6,500 6,032 24,662
$ 734,535 4,847,105 1,051,014 884,689 434,924 7,952,267 3,013,820 200,710
3,214,530$ 11,166,797 278,510 897,117 1,304,991 3,028,493 347,171 267,189
3,673,547$ 4,978,538
- - - - - - -
-
26,359 200
4,672,287 1,027,016 900,255 388,430 7,662,741 2,911,651 231,376 3,143,027$
931 287,521 880,494 73,725 1,269,030 3,191,340 345,961 3,537,501
$ 674,753$ 10,805,768$ 4,806,531
- - - - - - -
- - - - -
- - - - - - -
- -
$ 105 8,060
$ 691,932 4,616,255 1,039,001 856,790 467,498 7,671,476 2,934,729 279,213 3,213,942$
10,885,418 324,504 890,489 75,880 490,255 1,789,293 3,376,100 344,596 3,720,696$
5,509,989
- - -
- - - -
$ 3,757 8,922 211 376 2,800 463
$ 1,113,604 4,669,217 1,068,023 879,353 585,452 8,315,649 3,015,636 336,503 3,352,139
368,253 914,873 100,305 1,399,960 3,601,830 400,035 4,001,865
$ 11,667,788$ 5,401,825
- - - - -
- 90 -
- - - -
$ 17,376 986 2,804 7,635 695
$ 1,176,016 4,786,742 989,959 969,778 568,356 8,490,851 2,946,743 427,634 3,374,377$
11,865,228 528,502 978,586 88,413 319,888 92,420 2,037,305 3,363,595 577,141
3,940,736$ 5,978,041
- - - -
20142013
----
1,196,0104,988,95547,1248,901,3402,867,5523,331,17022,89085,8322,178,4913,569,9284,149,4226,327,913
976,126971,376721,749463,61812,232,510509,007983,463283,621293,678579,494
-------
----
1,506,2434,533,2432,873,5153,399,58020,5522,082,3693,732,9614,313,5046,395,873
982,2911,039,747570,491104,385Total governmental activities expenses8,736,400526,06512,135,980614,2541,050,37779,947303,35313,886580,543
-------
$
2015
$
$
$
Total governmental activities program revenue
Total business-type activities program revenue
Total primary government program revenue
s
s
s
City of Cape Canaveral, Florida
Total business-type activities expense
Total primary-government expense
s
(accrual basis of accounting)
s
Operating Grants and Contributions
Operating grants and contributions
Capital Grants and Contributions
Capital grants and contributions
Changes in Net Position
Last Ten Fiscal Years
Interest on long-term debt
Physical environment
Unallocated depreciation
General governmentGeneral governmentGeneral government
Governmental activities:
Physical environment
Charges for Services:
Business-type activities:Business-type activities:
Charges for services:
Governmental activities
Stormwater utilityStormwater utilityStormwater utility
General governmentCulture/recreationCulture/recreationCulture/recreation
Wastewater utilit
Stormwater utility
Culture/recreation
Wastewater utilitTransportationTransportation
y
Sewer utilitySewer utility
Public safetPublic safetPublic safet
Transportation
yProgram revenu
Public safet
yyy
e
y
Expenses:
Table 2
(125,000)
$ (5,070,354)$ (3,806,387)
3,604
1,263,967 252,083 1,959,958 862,176 324,014 68,169 125,000 6,584,464
144,285 22,889 1,286,856
$ 2,993,064$ 6,607,353$ 1,514,110$ 2,800,966
- - -
(Continued)
2012201120102009200820072006
$$$$$$
$ (6,175,242)$ (5,946,641) (125,000)
228,601$ 4,126,664 256,561 1,989,636 816,424 414,755 32,745 88,565
125,000 7,850,350 188,485 63,485$ 7,913,835$ 1,675,108 292,086$ 1,967,194
- - -
(144,772) (125,000) (33,136) (177,908)
$ (6,403,036)$ (6,547,808)
885
250,773 2,005,460 771,490 216,606 35,593 125,000 7,343,813 91,864
$ 3,938,006$ 7,310,677$ 940,777$ 762,869
- - -
Fiscal YearFiscal Year
$ (6,647,276)$ (6,188,259) (125,000) (43,757)
4,665 28,504 40,326 40,917
459,017$ 3,988,772 275,700 2,038,270 698,031 202,793 125,000 7,361,735$
7,317,978$ 714,459 415,260$ 1,129,719
- -
(134,471) (64,344)
$ (6,393,711)$ (5,999,237)
394,474 286,961 2,055,467 691,234 243,926 179,694 25,019 134,471
6,918,370 70,127 330,130
$ 3,301,598$ 6,854,026$ 524,659$ 854,789
- - -
34 in
$ (5,882,183)$ (5,904,597)$ (5,887,187)$ (6,265,963)(5,375,429) (125,000) (51,579)
506,754$ 3,701,683 270,065 2,072,864 662,774 189,713 49,420 125,000 7,071,519
54,761 18,660$ 7,019,940$ 1,189,336 455,175$ 1,644,511
- - -
Note: The city began reporting financial information on the accrual basis of accounting when it implemented GASB Statement No.
(125,000) (76,754)
$ (6,915,689)$ (282,987)
992
649,726 343,960 1,990,307 696,767 177,045 52,788 125,000 6,632,702
47,254 572,972
$ 3,246,835$ 6,555,948$ 289,985
- - -
- 91 -
$ (6,453,546) (125,000) (100,475)$ (114,303)
566,359$ 3,225,873 319,888 2,064,043 733,430 118,418 72,479 125,000
6,659,131 24,525$ 6,558,656 465,884$ 351,581
- - - -
20142013
(405,131)
(6,722,849)(210,604)
3,244,5662,302,71565,0026,317,71816,9036,545,2251,045,759
818,252794,366121,673210,604227,507640,628
-----
(6,654,031)Total primary government net (expense) revenue $ (5,740,107)(329,400)
Total business-type activities(298,398)
4,6886,788,9971,048,890
913,9243,280,6322,385,223940,78580,68770,668329,400Total governmental activities7,087,39526,314433,364615,526
----
2015
$
$ $ $
$
o
t
ini
n net pos
General revenues and other changes in net assets
i
mary government change
City of Cape Canaveral, Florida
Unrestricted intergovernmental revenuesUnrestricted intergovernmental revenues
(accrual basis of accounting)
Gain on disposition of capital assets
Total primary governmen
Changes in Net Position
t
Local option motor fuel taxes
Last Ten Fiscal Years
Contributions and donations
Utility and franchise taxes
Governmental activities
Miscellaneous revenuesMiscellaneous revenues
Business-type activitiesBusiness-type activities
Government activities
Governmental activities:
Business-type activities:
Change in net position
Net (expense) revenu
Investment incomeInvestment income
fiscal year 2004.
:
e
i
Total pr
Property taxes
TransfersTransfers
City of Cape Canaveral, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting
)
Fiscal Year
2015
20142013
2012
General Fun
d
$-
Reserve$ --$ -$
d
-
Unreserve -- -
d
105,275
onspendable 12,394124,668 11,192
N
542,083
Restricte 249,194430,314 227,475
d
4,393,882
Committe 2,264,8385,024,941 -
d
-
Assigne 428,837485,543 2,901,197
d
3,585,562
Unassigned (deficit) 3,285,8683,026,331 3,035,218
$8,626,802
Total general fun$ 6,241,1319,091,797$ 6,175,082$
d
All other Governmental Funds
:
$-
Reserve$ --$ -$
d
Unreserved, reported in:
-
Special revenue funds -- -
-
Capital projects fun -- -
d
-
onspendable -- -
N
1,149,091
Restricte 913,010866,396 774,266
d
3,113
Committe -- 4,119
d
1,998
Assigne -- -
d
-
Unassigned (deficit) -(189,731) -
$1,154,202
Total all other governmental fund$ 913,010676,665$ 778,385$
s
ote: Implementation of GASB 54 in 2011 has changed fund balance designations
N.
- 92 -
Table 3
Fiscal Year
201120102009200820072006
$ 1,319,729-$ 49,172$ 365,929$ 351,716$ 383,053$
5,051,617- 6,306,358 5,123,269 4,757,047 6,017,522
376,436
47,645
-
2,731,899
2,831,584
$ 6,371,3465,987,564$ 6,355,530$ 5,489,198$ 5,108,763$ 6,400,575$
$ 229,488-$ 21,362$ 19,896$ 12,915$ -$
517,503- 855,695 702,131 497,486 421,000
780,229- 781,333 762,263 800,877 786,600
6,247
1,189,516
7,762
-
-
$ 1,527,2201,203,525$ 1,658,390$ 1,484,290$ 1,311,278$ 1,207,600$
- 93 -
Cit of Cae Canaveral, Florida
yp
Chanes in Fund Balances of Governmental Funds
g
Last Ten Fiscal Years
(modified accrual basis of accountin)
g
Fiscal Year
2015201420132012
Revenues:
$3,280,632
Property Taxes$ 3,225,8733,244,566$ 3,246,835$
303,353
Local option fuel taxes 319,888283,621 343,960
2,327,660
Utility and franchise taxes 2,005,2882,242,170 1,926,356
1,107,604
Intergovernmenta 968,2711,237,160 840,488
l
324,649
Licenses and permits 240,605214,674 187,851
1,187,150
Charges for services and impact fees 1,177,4911,178,777 1,052,443
80,412
Fines and forfeitures 68,47784,173 32,810
16,046
Impact fees -- -
80,687
Investment earnings 118,41865,002 177,045
-
Contributions and donation 2,286- 11,722
s
129,237
Miscellaneous 107,101174,520 88,152
Total revenues8,837,430
8,233,6988,724,663 7,907,662
Exenditures:
p
Current:
1,497,117
General governmen 1,158,7451,137,376 1,075,806
t
4,270,231
Public safety 4,536,9674,686,563 4,443,899
734,258
Transportatio 650,836708,679 731,492
n
1,039,747
Physical environmen 958,346971,376 886,445
t
468,430
Culture/recreatio 505,509629,639 505,436
n
3,678,426
Capital outla 386,9685,089,128 741,895
y
Debt service:
509,000
Principal -- -
104,385
Interest -47,124 -
Total exenditures12,301,594
8,197,37113,269,885 8,384,973
p
Excess of revenues over
(under) expenditures(3,464,164)
36,327(4,545,222) (477,311)
Other financin sources (uses):
g
12,567
Proceeds from sale of assets 39,34799,119 114,689
-
Capital lease -- -
4,467,764
Transfers In 353,1205,435,060 125,000
(1,003,625)
Transfers Out (228,120)(3,874,636) -
-
5,500,000
Issuance of long term debt
Total other financin sources (uses)3,476,706
164,3477,159,543 239,689
g
e in fund balances12,542$
Net chan$ 200,6742,614,321$ (237,622)$
g
Debt Service as a Percentage of Noncapital
Expenditures7.66%
0.58%0.00%0.00%
- 94 -
Table 4
Fiscal Year
201120102009200820072006
$ 3,301,5983,701,683$ 3,988,772$ 3,938,006$ 4,126,664$ 2,992,452$
286,961270,065 275,700 250,773 256,561 252,083
2,055,4672,001,431 2,038,270 2,005,460 1,989,636 1,959,958
717,5931,207,232 876,990 809,619 880,794 970,483
184,938174,371 169,165 186,704 313,322 614,945
987,9251,004,528 988,282 978,083 1,003,219 998,000
69,80843,743 74,585 37,116 174,672 24,978
-- - - - -
243,926189,714 202,793 216,606 414,755 324,682
178,32167,578 4,665 885 200,065 -
26,38765,364 28,504 35,593 89,510 68,171
8,052,9248,725,709 8,647,726 8,458,845 9,449,198 8,205,752
662,651661,104 712,862 640,727 895,652 774,186
4,494,9534,457,143 4,579,807 4,554,969 4,164,897 3,532,563
869,194881,311 885,181 894,060 989,750 848,026
827,054855,189 872,318 870,223 865,088 841,246
381,838394,860 365,351 346,513 400,186 332,185
959,9092,318,682 319,875 686,504 3,409,357 644,437
-- - 35,649 33,977 32,384
-- - 1,753 3,425 5,018
8,195,5999,568,289 7,735,394 8,030,398 10,762,332 7,010,045
(142,675)(842,580) 912,332 428,447 (1,313,134) 1,195,707
-10,103 3,100 - - 2,350
-- - - - -
125,000125,000 125,000 125,000 125,000 172,007
-- - - - (47,007)
125,000135,103 128,100 125,000 125,000 127,350
$ (17,675)(707,477)$ 1,040,432$ 553,447$ (1,188,134)$ 1,323,057$
0.00%0.00%0.00%0.51%0.51%0.59%
- 95 -
City of Cape Canaveral, FloridaTable 5
Tax Revenues by Source of Governmental Funds
Last Ten Fiscal Years
Local Option Gas Utility and
Fiscal Year Ending
TaxesFranchise Taxes
September 30TotalProperty Taxes
2015$ 3,280,632$ 303,353$ 2,327,660$ 5,911,645
20143,244,566 283,621 2,242,170 5,770,357
20133,225,873 319,888 2,005,288 5,551,049
20123,246,835 343,960 1,926,356 5,517,151
20113,701,683 270,065 2,001,431 5,973,179
20103,301,598 286,961 2,055,467 5,644,026
20093,988,772 275,700 2,038,270 6,302,742
20083,938,006 250,773 2,005,460 6,194,239
20074,126,664 256,561 1,989,636 6,372,861
20062,992,452 252,083 1,959,958 5,204,493
Tax Revenues by Source -Governmental Funds
FY 2014-2015
Utility and
Franchise Taxes
Property Taxes
Local Option Gas
Taxes
Note: This schedule represents General Fund Revenues and Special Revenue Funds
- 96 -
City of Cape Canaveral, FloridaTable 6
Assessed Value and Actual Value of Taxable Property - Unaudited
Last Ten Fiscal Years
Assessed Value
Fiscal
as a Percentage
Year
Total Direct Tax
of Actual Value
Ending
Exemptions Real Total Taxable Assessed
Rate
Real PropertyPersonal PropertyEstimated Actual Value
Sept. 30
Property Value
2015 $ 1,089,004,140$ 37,779,795$ 1,126,783,935$ 136,211,297$ 911,269,9883.724680.9%
2014997,910,830 32,828,416 1,030,739,246 134,809,299 854,722,277 3.910282.9%
2013941,481,580 29,345,431 970,827,011 133,952,078 819,560,573 4.073984.4%
2012946,202,570 28,849,632 975,052,202 135,604,108 822,683,104 4.073984.4%
20111,086,815,240 37,635,713 1,088,915,973 144,063,544 944,852,429 4.073986.8%
20101,297,016,050 44,355,005 1,341,371,055 256,232,810 1,114,328,062 3.067183.1%
20091,621,339,380 44,924,563 1,666,263,943 316,819,560 1,343,479,136 3.067180.6%
20081,739,019,845 42,792,900 1,781,812,745 321,863,840 1,459,073,335 2.781681.9%
20071,773,047,020 39,450,089 1,812,497,109 386,735,730 1,424,882,519 3.000078.6%
20061,279,256,860 39,350,917 1,318,607,777 284,498,670 1,033,238,067 3.000078.4%
Actual vs
Assessed Value of Taxable Property
2,000
1,800
1,600
Millions
1,400
1,200
1,000
800
600
400
200
0
2006200720082009201020112012201320142015
Actual ValueAssessed Value
Source: Brevard County Property Appraiser (Form DR-403 AM)
- 97 -
City of Cape Canaveral, FloridaTable 7
Property Tax Rates - Direct and Overlapping Governments - Unaudited
Last Ten Fiscal Years
Mills (per $1,000 of assessed valuation)
Total Direct &
Cape Canaveral (1)
Brevard
Brevard School
Overlapping
District
Fiscal YearLibraryPoliceFireBeautificationTotal County
Rates
3.6580***
20150.06663.72465.45897.339016.5225
20140.07091.91871.43900.48163.91025.62547.606017.1416
20130.07392.00001.50000.50004.07396.28578.096018.4556
20120.07392.00001.50000.50004.07396.28578.112018.4716
20110.07392.00001.50000.50004.07395.67527.653017.4021
20100.04531.41661.27150.33373.06714.97147.687015.7255
20090.04531.41661.27150.33373.06715.12657.661015.8546
20080.04531.41660.98600.33372.78165.07137.531015.3839
20070.05001.56201.02000.36803.00005.43757.667016.1045
20060.05001.56201.02000.36803.00005.34057.963016.3035
Tax Rates for Cape Canaveral
Residents
9.0000
8.0000
7.0000
Mills
6.0000
5.0000
4.0000
3.0000
2.0000
1.0000
0.0000
2006200720082009201020112012201320142015
Cape CanaveralBrevard CountyBrevard Schools
*** 2015 is the 1st year of a General Millage for Cape Canaveral
(1) Millage Rate includes General Fund and Library Fund
Data source: Brevard County Tax Collector
- 98 -
City of Cape Canaveral, FloridaTable 8
Principal Property Taxpayers(Major Taxpayers) - Unaudited
Current Year and Ten Years Ago
Year Ended September 30, 2015Year Ended September 30, 2006
Percent of Percent of
Total City Total City
TaxTaxable TaxTaxable
TaxpayerProduct/ServiceAssessedRankValueAssessedRankValue
OLCC Florida, LLC (Cape Caribe)Time Share Dvlpmnt182,173$ 15.37%104,356$ 13.37%
Hotel
Cocoa Beach Motel Two, Inc. 20.86%31,50029,350 21.02%
Cape Canaveral Joint VentureN/A19,163 30.56%21,300 40.69%
Palms East of Cape Canaveral, LLCRental Property15,830 40.47%22,800 30.74%
Portview Inn & Suites, LLCHotel14,079 50.41%
0.49%
Oceanside Treasure, LLCCondominium13,222 60.39%15,300 5
Hotel
C C Hotel Cab & Investors, LLC 70.38%12,943
Contractor80.36%60.43%
IAP World Services, Inc.12,23913,200
Rental Property10,429 90.31%
Logan Commercial Office Center,
LLC
8910 Astronaut, LLCManufacturing10
9,6840.29%
Puerto Del Rio, LLC.70.39%
12,150
9
Coastal Fuels Marketing.10,0750.33%
AJT. Ltd.80.36%
11,100
Total Taxes Assessed319,112$ 9.40%241,781$ 7.82%
Taxes Assesed to Principal Taxpayers
FY 2014 -2015
IAP World Services, Inc.
8910 Astronaut, LLC
4%
3%
Logan Commercial Office Center, LLC
C C Hotel Cab & Investors, LLC
3%
4%
Oceanside Treasure, LLC
4%
Portview Inn & Suites, LLC
5%
Palms East of Cape Canaveral, LLC
5%
Cape Canaveral Joint Venture
6%
OLCC Florida, LLC (Cape Caribe)
57%
Cocoa Beach Motel Two, Inc.
9%
Source: Brevard County Tax Collecto
r
- 99 -
Cit of Cae Canaveral FloridaTable 9
yp,
Proert Tax Levies and Collections - Unaudited
py
Last Ten Fiscal Years
Collections Within the Fiscal Year of
the LevyTotal Collections to Date
Taxes Levied for the Percentage of Total Amount Percentage of
Delinquent Tax
Fiscal YearTax YearAmount CollectedLevyCollections (1)CollectedLevy
20153,393,383$ 3,280,632$ 96.68%-$ 3,280,632$ 97%
20143,344,618 3,178,717 95.04%50,621 3,229,338 97%
20133,338,808 3,109,406 93.13%65,851 3,175,257 95%
20123,350,8723,157,481 94.23%116,468 3,273,949 98%
20113,848,393 3,712,491 96.47%89,3523,801,843 99%
20103,417,270 3,197,358 93.56%100,626 3,297,984 97%
20094,120,587 3,914,799 95.01%53,324 3,968,123 96%
20084,060,992 3,918,689 96.50%64,899 3,983,588 98%
20074,278,807 4,114,800 96.17%20,806 4,135,606 97%
20063,102,035 2,985,472 96.24%32,445 3,017,917 97%
Property Tax Levies
$4,500
$4,000
$3,500
Thousands
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$-
2006200720082009201020112012201320142015
Source: Brevard County Property Appraiser and Tax Collecto
r
(1) Includes delinquent taxes, penalties and tax certificates.
- 100 -
City of Cape Canaveral, FloridaTable 10
Ratios of Outstanding Debt by Type - Unaudited
Last Ten Fiscal Years
Business-
Type
Activities
Governmental Activities
StatePercentage
Per
Revenue Capital Total Personal
Revolvingof Personal
Capita
Fiscal
Note Payable LeasesIncome (a)
LoansIncome
(b)
Total
Year
20154,991,000$ -$ 2,105,069$ 7,096,069$ 340,791,737 2.08%706
20145,500,000 - 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
Source:(a)Economic Development Commission of Florida's Space Coast
(b) See Economic Development Commission Community Data for Cape Canaveral Qtr 1 2015
these ratios are calculated from this information.
Note: Details regarding the City's outstanding debt are located in the Notes to Financial Statements.
- 101 -
City of Cape Canaveral, FloridaTable 11
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita - Unaudited
Last Ten Fiscal Years
Ratio of Net Net Bonded
Bonded Debt to Debt Per
Net Bonded
Assessed ValueCapita
Debt
Fiscal YearPopulation (a)Assessed Value (b)
201510,049 911,269,988 - 0.00%0.00
201410,022 854,722,277 - 0.00%0.00
20139,987 819,560,573 - 0.00%0.00
20129,926 822,683,104 - 0.00%0.00
201110,426 944,852,429 - 0.00%0.00
201010,491 1,114,169,772 - 0.00%0.00
200910,499 1,342,062,936 - 0.00%0.00
200810,635 1,695,471,375 - 0.00%0.00
200710,526 1,424,882,520 - 0.00%0.00
200610,363 1,248,288,980 - 0.00%0.00
Source: (a) Homefacts.com
(b) Brevard County Property Appraiser (Form BC-403V)
- 102 -
City of Cape Canaveral, Florida
Table 12
Direct and Overlapping Governmental Activities Debt
September 30, 2015
City's Estimated Share of
Direct and Overlapping
Applicable Percentage
Debt
Debt
Governmental Unit(2)
Outstanding (1)
Brevard County
$ 1.79%1,784,66699,870,575$
City of Cape Canaveral Direct Debt (Governmental Activities)
Revenue Note4,991,000
Total Direct and Overlapping Debt
$6,775,666
(1) Source: Brevard County Comprehensive Annual Financial Report. Table 12
(2) Based on 2014 population. Cape Canaveral vs Brevard County
Source: (a) Homefacts.com
(b) Brevard County Property Appraiser (Form BC-403V)
- 103 -
City of Cape Canaveral, FloridaTable 13
Pledged Revenue Coverage - Wastewater System - Unaudited
Last Ten Fiscal Years
Direct Operating
Expenses
Debt Coverage Debt Service Debt Service (Excluding Operating
Fiscal
Revenues Requirements Coverage Depreciation) Coverage
(a)(b)(c)(d)(e)
Year
$ 3,732,961
2015$ 5.751,952,830649,383$ 2.74
20143,569,928 649,383 5.501,946,033 2.50
20133,363,595 649,383 5.182,040,297 2.04
20123,602,765 649,383 5.552,101,172 2.31
20113,376,100 645,264 5.232,022,564 2.10
20103,191,341 644,579 4.952,240,191 1.48
20092,988,288 644,730 4.632,322,703 1.03
20082,778,882 644,853 4.312,167,963 0.95
20072,937,665 649,383 4.522,092,434 1.30
20063,727,507 645,127 5.781,883,148 2.86
Coverage Ratio
5.00
4.00
3.00
2.00
1.00
0.00
2006200720082009201020112012201320142015
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)
- 104 -
City of Cape Canaveral, FloridaTable 14
Demographic Statistics - Unaudited
Last Ten Fiscal Years
School
Unemployment Per Capita Personal Median Household
Enrollment
FiscalPopulationMedian Age
RateIncomeIncome
Year(a)(a)(a)(a)(a)(b)
201510,049 53.6 6.0%33,913$ 41,222$ 369
201410,022 52.5 6.4%34,620 45,577 369
20139,987 48.3 7.9%35,204 43,881 368
20129,926 48.3 9.9%35,268 46,060 375
201110,426 50.0 11.1%30,633 40,468 362
201010,491 49.2 11.4%29,920 40,009 367
200910,499 48.4 10.0%24,859 46,279 365
200810,635 48.4 6.5%35,164 50,261 369
200710,526 48.4 4.4%31,800 46,335 324
200610,523 43.1 3.4%31,360 45,089 369
Per Capita Income
Population
11,00038,000
36,000
10,500
34,000
32,000
10,000
30,000
9,500
28,000
26,000
9,000
24,000
8,500
22,000
20,000
8,000
Source: (a) Economic Development Comission of Florida's Space Coast - Median age unavailable for 2013.
(b) Cape View Elementary
- 105 -
Percentage of
Total County
City of Cape Canaveral, FloridaTable 15
Employment
13.58% 42.41% 32.57% 51.24%0.00% 80.80% 70.99% 90.79%0.00%0.00% 12.38%
2006
Rank
Number of
Employees
9,0646,1006,5003,1372,0182,5002,000
31,319
Percentage of
Total County
Employment
14.24% 23.23% 32.38% 40.97% 50.86% 60.82% 70.76% 80.67% 90.67% 100.56% 15.16%
Note: Figures are for Brevard County. No City figures are available.
Source: Economic Development Commission of Florida's Space Coast.
- 106 -
2015
Rank
Number of
Employees
Total36,560
7,8005,7502,3502,0701,9751,8401,6151,6051,340
10,215
o
ers - Unaudited
g
Current Year and Ten Years A
Northrop Grumman Corporation
Brevard County School District
Brevard County Government
Eastern Florida State College
Wuesthoff Medical Center
USAF 45th Space Wing
Rockwell Collins Inc.
y
lo
Harris Corporation
Health First, Inc.
p
al Em
Employer
p
Princi
NASA
Table 16
17.0018.0018.0019.5019.5019.5019.5019.5021.5052.5049.0046.5048.5048.5050.0050.0050.0048.00
201120102009200820072006
5.005.004.004.004.004.004.004.004.004.003.503.003.003.003.003.003.001.506.005.005.005.504.505.505.505.503.008.007.007.005.505.506.006.006.005.507.006.006.007.008.008.008.008.009.001.501.501.501.501.5
01.501.501.501.502.002.001.001.501.501.501.501.501.002.001.001.001.001.001.001.001.001.00
Note: Police & Fire Departments are contracted out and Personnel not included in City totals
Full-Time Equivalent City Government Employees by Function/Program - Unaudited
2012
Method: 1.0 for full-time employees and 0.50 for part-time and seasonal employees
- 107 -
20142013
Source: City of Cape Canaveral, Florida's Budget
15.00Totals48.50
2015
5.004.006.007.007.001.502.001.00
City of Cape Canaveral, Florida
Infrastructure Maintenance Dept.
Waste Water Treatment Plant
Executive/Administration
Last Ten Fiscal Years
Building Department
General Government:
Code Enforcement
Function/program
Crossing Guards
Public Works:
Public Safety:
Stormwater
Recreation
Finance
Table 17
1,100,000
872 3,674 1,009 325 2,221 1,405 36 203 1,025 29 8,801 11
31,112
201420132012201120102009200820072006
782 2,355 660 265 2,043 1,305 32 23057,180 8 9,213 10 31,203
1,200,000
707 1,663 1,026 521 1,642 1,328 83 98 24 9,200 10 27,949 1,200,000
-
736 1,663 1,054 860 1,748 1,253 78 630 8 8,481 6 29,333 1,200,000
-
796 1,444 990 623 2,995 1,349 75 830 10 8,452 2 29,286 1,200,000
-
749 1,218 1,003 357 1,706 1,549 79 1,4483,925 24 8,4911 32,1201,070,700
8361,3428322878641,567701,505122,70527,395 1,096,000
- -
- 108 -
1,080 1,773 511 142 852 1,676 25 1,658 30 2,718 10,993 1,096,000
- -
Note: In accordance with Inter-Municipal Agreement, Water & Services provided to
9351,6786253177981,581611,543122,723610,8991,096,000
-
City of Cape Canaveral by City of Cocoa Water Department. Sewer is City of Cape
1,1771,9959431895611,845311,436122,837611,6321,100,000
-
2015
Source: City of Cape Canaveral and City of Cocoa, Florid
a
Canaveral revenue; Water is City of Cocoa revenue.
Operating Indicators by Function - Unaudited
Average daily wastewater treatment
City of Cape Canaveral, Florida
Building inspections conducted
Streets resurfacing (feet)
Average monthly useage
Building permits issued
Last Ten Fiscal Years
General government
Emergency responses
Water main breaks
Parking violations
Fires extinguished
Traffic violations
Potholes repaired
Physical arrests
Public works
Water/Sewer
Wastewater
Inspections
Accounts
Function
Police
Fire
Table 18111111112828293126.5293011111111616161616161662262255655654054054088888884444333555555522222221111111111111148484848484848214214214214214
26.9926.9926.9926.9926.9926.9926.99
16.5
NoneNoneNoneNoneNoneNoneNoneNoneNone
1,100,000
201420132012201120102009200820072006
16.5
1,200,000
-
16.6
1,800,000
-
16.6
1,800,000
-
16.6
1,800,000
-
214214
16.6
1,800,000
-
16.6
1,800,000
-
1 22 1 16 645 8 26.99 4 5 2
1 1 48 214
16.6 1,800,000
- 109 -
-
221648
11645826.994521121416.61,800,000
Note: In accordance with Inter-Municipal Agreement, Water & Services provided to
-
City of Cape Canaveral by City of Cocoa Water Department. Storage Tanks are not
None
122121.864584521148.221416.8
26.991,800,000
-
2015
Source: City of Cape Canaveral and City of Cocoa, Florida
Capital Asset Statistics by Function - Unaudited
Treatment capacity (thousands of gallons)
Storage capacity (thousands of gallons)
located in City of Cape Canaveral .
City of Cape Canaveral, Florida
Baseball/softball diamonds
Recreation and culture
Last Ten Fiscal Years
Sanitary sewers (miles)
Soccer/football fields
Water mains (miles)
Streets (lane miles)
Public works
Tennis courts
Fire hydrants
Parks - acres
Wastewater
Playgrounds
City centers
Substations
Patrol units
Streetlights
Function
StationsStations
Water
Police
Parks
Fire
2,8372,8371,7601,07711,6324.10$298,392
Table 19
Note: In accordance with Inter-Municipality Agreement, water plant & services provided to City of Cape Canaveral by
City of Cocoa Water Department. Wastewater is City of Cape Canaveral revenue; water is City of Cocoa revenue.
Source: City of Cocoa Wastewater Consumption Analysis for FY15 & City of Cape Canaveral
- 110 -
Water/Wastewater Distribution and Consumption - Unaudited
Average Monthly Wastewater Collection (thousands of dollars)
Average Consumption per meter (thousands of gallons)
Water & Wastewater Distribution & Consumption
Average Monthly Useage (thousands of gallons)
City of Cape Canaveral, Florida
Residential Meters (3/4")
Non-residential Meters
Number of Accounts
Total Meters Billed
Fiscal Year 2015
City of Cape Canaveral, FloridaTable 20
Water and Wastewater Rates - Unaudited
Last Ten Fiscal Years
WaterWastewater
Monthly Base Rate per 1,000 Monthly Base Rate per 1,000
RateGallonsRateGallons
Fiscal Year
201514.59$ 3.04$ 18.43$ 5.37$
201414.59 3.04 17.54 5.11
201313.89 3.01 16.70 4.86
201213.23 2.89 15.82 4.60
201112.54 2.61 14.93 4.34
201011.62 2.41 14.08 4.09
200911.52 2.31 13.27 3.85
200811.52 2.31 12.51 3.63
200710.01 2.01 11.45 3.42
200610.01 1.82 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.
- 111 -
City of Cape Canaveral, FloridaTable 21
Construction, Property Value and Bank Deposits - Unaudited
Last Ten Fiscal Years
CommercialResidential(b)(c)
Construction (a)Construction (a)Bank
Fiscal# of# ofDeposits
Brevard County Real and
YearUnitsValueUnitsValue(in thousands)Personal Property Taxable Value
201511,299,738$ 31 466,392$ 27,990,267,285$ n/a
20141557,455 - - 25,745,155,761 n/a
20130- 4 877,749 24,626,876,502 n/a
20120- 2 401,774 24,922,195,924 n/a
20110- 2 436,946 29,089,009,692 n/a
20100- 1 253,243 33,330,608,859 9,293,940
20090- 7 1,594,097 38,013,415,731 9,112,122
200843,683,089 11 2,315,049 40,973,507,774 9,069,186
200735,296,641 25 7,191,839 39,375,931,246 8,423,971
2006270,179 37 7,582,680 31,060,244,010 6,795,498
Commercial and Residential Building Permits
110
100
90
(In Millions)
Permit Value
80
70
60
50
40
30
20
10
0
2005200620072008200920102011201220132014
CommercialResidential
Data source:
(a)City of Cape Canaveral Building Department
(b)Brevard County Tax Collector
(c)Florida Bankers Association (figures are for Brevard County)
- 112 -
City of Cape Canaveral, FloridaTable 22
Miscellaneous Statistics - Unaudited
September 30, 2015
Date of IncorporationMay 16, 1963
Form of GovernmentCouncil - Manager
Area/Square Miles1.9 sq. miles
Miles of Streets:
Paved21.8 miles
Unpaved.2 miles
Street Lights645
Fire Protection:
Number of Stations1
Number of Firefighters (volunteer)15
Number of Firefighters (paid)35
Police Protection:
Number of Stations1
Number of Police Officers28
Recreation:
Parks - acres26.99
Number of special use facilities2
Number of neighborhood parks8
Undeveloped land, dedicated for recreation use (acres)7.88
Wastewater
Gravity Sewer mains16.8 miles
Force mains2.8 miles
Storm sewers9.5 miles
Reclaim lines14 miles
Number of reuse accounts694
Number of accounts (wastewater)2837
Schools:
Elementary1
Building Permits Issued1177
Number of City Employees (excluding police officers and firefighters)48.5
- 113 -
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Single Audit and Other Reports
- 115 -
THIS PAGE INTENTIONALLY LEFT BLANK.
- 116 -
CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2015
State Grantor/ Pass-CSFAContract /
Through Grantor/Program TitleGrant NumbeExpenditures
Numbe
rr
STATE FINANCIAL ASSISTANCE
State of Florida Department of Environmental Protection
Direct Programs:
Wastewater Treatement Facility Construction37.077WW0505001,684,646$
Total State Awards$1,684,646
Notes:
Basis of Presentation:
1)
The accompanying Schedule of State Financial Assistance includes state financial assistance activity of City of Cape
Canaveral, Florida, and is presented on the accrual basis of accounting. The information in this schedule is presented
in accordance with the requirements of Chapter 10.550, Rules of the Florida Auditor General.
2Subrecipients:
)
The City provided no state awards to subrecipients during the year ended September 30, 2015.
- 117 -
CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
A.Summary of Auditors’ Results:
Financial Statements:
Type of audit report issued on the basic financial statements: Unmodified.
Internal control over financial reporting:
There were no material weaknesses related to internal control over financial reporting
disclosed by the audit of the basic financial statements.
The audit did not disclose any noncompliance, which was material to the basic financial
statements.
State Financial Assistance:
Internal control over major State projects:
There were no material weaknesses related to internal control over major State projects
disclosed by the audit.
Type of report issued on compliance for each major program: Unmodified.
The audit did not disclose any audit findings, which are required to be reported under
Chapter 10.550, Rules of the Auditor General.
Major project identification:
CFDA No. 37.077 – Wastewater Treatment Facility Construction
Dollar threshold used to distinguish between Type A and Type B programs was $300,000.
B.Financial Statement Findings:
None
C.State Financial Assistance Findings and Questioned Costs:
None
D.Prior Audit Findings:
None
E.Corrective Action Plan:
Not applicable as no findings have been reported.
- 118 –
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR STATE
PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE
IN ACCORDANCE WITH CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
To the Honorable Mayor, City Council, and City Manager,
City of Cape Canaveral, Florida:
Report on Compliance for Each Major State Project
We have audited City of Cape Canaveral, Florida’s (the City) compliance with the types of compliance
requirements described in the Department of Financial Services’ State Projects Compliance Supplement
that could have a direct and material effect on each of the City’s major State projects for the year ended
September 30, 2015. The City’s major State projects are identified in the summary of auditors’ results
section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its State projects.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the Authority’s major State projects
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Those
standards and Chapter 10.550, Rules of the Auditor General,require that we plan and perform the audit to
obtain reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major State project occurred. An audit
includes 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 audit provides a reasonable basis for our opinion on compliance for each major State
project. However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Each Major State Project
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major State projects for the
year ended September 30, 2015.
- 119 -
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit, we considered the City’s internal control over compliance with the types of requirements that could
have a direct and material effect on each major State project as a basis for designing auditing procedures
that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each
major State Project and to test and report on internal control over compliance in accordance with Chapter
10.550, Rules of the Auditor General, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City’s internal control over compliance.
Adeficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
State project on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a State project will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance
with a type of compliance requirement of a State project that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance 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
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not suitable for any other
purpose
.
Daytona Beach, Florida
February 8, 2016
- 120 -
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 statementsof 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, 2015, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated February 8, 2016.
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.
Adeficiency 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.
- 121 -
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
February 8, 2016
- 122 -
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, 2015, and have issued our report thereon dated February 8, 2016.
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
withGovernment Auditing Standards; Independent Auditors’ Report on Compliance for Each Major State
Project and Report on Internal Control over Compliance; Schedule of Finding and Questioned Costs; 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 February 8, 2016,
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. Corrective actions have been taken to address findings and recommendations made in the
preceding annual financial audit report.
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.
- 123 -
Financial Condition
Section 10.554 (1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate
procedures and report the results of our determination as to whether or not the City has met one or more
of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific
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. and 10.556(7), Rules of the Auditor General, requires that we apply appropriate
procedures and report the results of our determination as to whether the annual financial report for the
City, for the fiscal year ended September 30, 2015, 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, 2015. 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 the
below recommendation.
2015-001 Administrative Access
– We noted two users with administrator access to Springbrook,
the accounting software, that are responsible for the financial reporting process, creating a segregation
of duties issue. This combination of access allows the employee to have the ability to override
controls on the application used for financial reporting functions. We recommend the City consider
regularly running a transaction by user report from Springbrook and have it reviewed by someone
outside the financial reporting process in order to look for any transactions created due to
inappropriate user access.
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
February 8, 2016
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INDEPENDENT ACCOUNTANTS’ EXAMINATION REPORT
To the Honorable Mayor, City Council, and City Manager,
City of Cape Canaveral, Florida
have examined the City of Cape Canaveral, Florida’s (the City) compliance with Section 218.415,
We
Florida Statutes, Local Government Investment Policies, for the year ended September 30, 2015.
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, 2015.
Daytona Beach, Florida
February 8, 2016
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