HomeMy WebLinkAboutCAFR 2016 Updated COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF CAPE CANAVERAL,FLORIDA
FISCAL YEAR ENDED SEPTEMBER 30,2016
Prepared By:
City of Cape Canaveral Finance Department
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CITY OF CAPE CANAVERAL,FLORIDA
TABLE OF CONTENTS
SEPTEMBER 30,2016
Page
Number(s)
INTRODUCTORY SECTION
List of Principal Officials 3
Letter of Transmittal 7 - 14
Organizational Chart 17
Certificate of Achievement for Excellence in Financial Reporting 19
FINANCIAL SECTION
Independent Auditors' Report 25-26
Management's Discussion and Analysis 29-39
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position 42
Statement of Activities 43
Fund Financial Statements:
Balance Sheet—Governmental Funds 44
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 Activities 47
Statement of Revenues,Expenditures, and Changes in Fund Balance—
Budget to Actual-General Fund 48
Statement of Revenues,Expenditures, and Changes in Fund Balance—
Budget to Actual-Cape Canaveral Community Redevelopment Agency
Fund 49
Statement of Net Position—Proprietary Funds 50
Statement of Revenues,Expenses, and Changes in Fund Net Position—
Proprietary Funds 51
Statement of Cash Flows—Proprietary Funds 52
Notes to Financial Statements 54 - 74
Required Supplementary Information
Schedule of Funding Progress—Other Post-Employment Benefits 76
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet—Nonmajor Governmental Funds 80
Combining Statement of Revenues,Expenditures, and Changes in Fund Balances—
Nonmajor Governmental Funds 81
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 30,2016
(Continued)
Page
Number(s)
STATISTICAL SECTION
Table 1 —Net Position by Component 89
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 Funds 96
Table 6—Assessed Value and Actual Value of Taxable Property 97
Table 7—Property Tax Rates—Direct and Overlapping Governments 98
Table 8—Principal Property Taxpayers(Major Taxpayers) 99
Table 9—Property Tax Levies and Collections 100
Table 10—Ratios of Outstanding Debt by Type 101
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 Debt 103
Table 13—Pledged-Revenue Coverage—Wastewater System 104
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/Program 108
Table 18—Capital Asset Statistics by Function/Program 109
Table 19—Water/Wastewater Distribution and Consumption—Unaudited 110
Table 20—Water and Wastewater Rates—Unaudited III
Table 21 —Construction,Property Value and Bank deposits—Unaudited 112
Table 22—Miscellaneous Statistics—Unaudited 113
SINGLE AUDIT AND OTHER REPORTS
Schedule of Expenditures of Federal Awards and State Financial Assistance 117
Notes to Schedule of Expenditures of Federal Awards and State Financial
Assistance 118
Schedule of Findings and Questioned Costs 119
Independent Auditors' Report on Compliance for Each Major Federal Program
and State Project and on Internal Control Over Compliance In Accordance with
the Uniform Guidance and Chapter 10.550,Rules of the Auditor General 122- 123
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 124- 125
Independent Auditors' Management Letter Required by Chapter 10.550, Rules of
the State of Florida Office of the Auditor General 126- 127
Independent Accountants' Examination Report 128
Management's Response to Findings 130
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Introductory Section
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City of Cape Canaveral, Florida
Comprehensive Annual Financial Report
Fiscal year ended September 30, 2016
City Council
Honorable Robert Hoog,Mayor
Betty Walsh,Mayor Pro Tem
John Bond
Michael Brown
Brendan McMillin
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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City of Cape Canaveral
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CAM caMvaMAL
February 8, 2017
Honorable Mayor and Members of City Council
City of Cape Canaveral
Cape Canaveral, Florida 32920
Dear Mayor and Members of City Council:
It is our pleasure to submit this Comprehensive Annual Financial Report (CAFR) for the City of
Cape Canaveral, Florida, for the Fiscal Year ended September 30, 2016. It fulfills the
requirements set forth pursuant to Florida Statutes Section 218.39 and Chapter 10.500 of the
Rules of the Auditor General of the State of Florida.
Responsibility for accuracy of the data and completeness/fairness of the presentation, including
all disclosures, rests with the City. The presentation of this data is fully supported by
management's establishment of a comprehensive internal control framework that is designed
both to protect the government's assets from loss, theft or misuse and to compile sufficient
reliable information for the preparation of the City's financial statements in conformity with
generally accepted accounting principles (GAAP). Because the cost of internal controls should
not outweigh its benefits, the City's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will
be free from material misstatement. As management, we assert that, to the best of our knowledge
and belief, this Report is complete and reliable in all material respects and is reported in a
manner designed to present fairly the financial position and results of operations of the City on a
Government-wide and Fund basis. All disclosures necessary to enable the reader to gain an
understanding of the City's financial activities have been included.
Florida Statutes and the City Charter require that an annual financial audit be performed by
independent certified public accountants. The audit was performed by James Moore & Co., P.L.,
licensed certified public accountants. The goal of the independent audit is to provide reasonable
assurance that the financial statements of the City for the Fiscal Year ended September 30, 2016
are free of material misstatement. The independent audit involved examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditor concluded, based upon the
audit, that there was a reasonable basis for rendering an unqualified opinion that the City's
financial statements for the Fiscal Year ended September 30, 2016 are fairly presented in
conformity with GAAP. The independent auditor's report is located at the front of the financial
section of this Report.
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7 -145 Polk Avenue • Post Offlcc Box 326 Cape Canaveral, FL 32 92 0-03 26
Tcicphone: (321) 868-1220 FAX: (321) 868-1248
tis ww.drynfeapecaraveral.org - email; inFo@6cyoFcaprcanavcra1.arg
The Honorable Mayor,et al
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 10,171 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 1 st, 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
2016 averaged 4.6% and is currently at 5.3%, (according to Homefacts.com). The national
unemployment rate dropped to 5.0% in September 2016 (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
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The Honorable Mayor,et al
2016 Economic Review. The area's median single-family home price has risen by 11.4% over
the previous year and is expected to rise again in 2017. 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
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 Funds (Stormwater and Wastewater), an approved State Revolving
Fund (SRF) loan from Florida Department of Environmental Protection (FDEP), grants from
various agencies (e.g., St. Johns River Water Management District [SJRWMD]) and
appropriations by the State Legislature.
Transportation
The Florida Department of Transportation (FDOT) funded portion of the North Atlantic Avenue
Streetscape Project was completed in December 2016. 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.
The Project included construction of a new pedway and sidewalks, lighting and stormwater
improvements, landscaping improvements and numerous decorative features. Additional
improvements and beautification tasks will be completed in 2017.
The City was awarded a grant from Florida Department of Economic Development (DOE) in the
amount of$24,000 to revise the Draft Pedestrian and Bicycling Plan. The Project was initiated in
November 2016 and will include recommended infrastructure improvements for the benefit of
pedestrians, bicyclists and motorists. The Grant also included funds in the amount of$16,000 for
the development of a Master Plan for Canaveral City Park. Both projects will be completed in
May 2017.
Wastewater System
Lift Stations No. 6 (Imperial Drive) and No. 7 (West Central Boulevard) were replaced and
enlarged in anticipation of continued development in the northern portion of the City. Lift
Station No. 7 was relocated to City-owned property in Manatee Sanctuary Park for easier access
of maintenance activities. Emergency generators were also installed at each of the lift stations.
Project completion was in December 2016.
The construction of a 2.5-million gallon reclaimed water storage tank at the WWTP was
completed. The addition of the new tank increases the City's storage capacity for reclaimed
water to 3.5-million gallons. The new tank will allow the City to limit discharges of treated
wastewater to the Banana River Lagoon (BRL). The Project also included 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 was in March 2016.
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The Honorable Mayor,et al
Phase I of the Holman Road Sanitary Sewer Improvements Project was completed to alleviate
sewer back-up in a residence along Holman Road and to increase sewer capacity. The sanitary
sewer line located beneath Holman Road was replaced with a 10-inch diameter pipe. The work
was the first phase of a three-phased project which would ultimately replace the entire sanitary
sewer line to Lift Station No. 2 located along Center Street. Construction of Phase I was
completed in May 2016.
The two clarifiers at the WWTP were fitted with covers to eliminate algae formation. Previously,
algae formed in the clarifiers due to exposure of partially-treated wastewater to sunlight. Algae
removal was a time-consuming task and a safety hazard to PWS Staff. The covers were installed
in March 2016.
Many smaller-scope improvement projects were also completed at the WWTP in 2016 including:
• RAS pump and motor replacements;
• WAS pump and motor replacements;
• IRP pump and motor replacements;
• Sludge holding blower replacements; and
• Wastewater sampler replacements.
Stormwater System
Major construction was completed on the Canaveral City Park Ex-filtration Project including 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 discharged to the BRL. Major construction was
completed in December 2016; ancillary construction will be completed in January 2017.
The City was awarded an EPA 319 Grant in the amount of $98,000 for the restoration of the
Banana River shoreline along Manatee Sanctuary and Banana River Parks. The shoreline has
been severely eroded over the past several years. Development of engineering drawings and bid
specifications was initiated in November 2016. The Project includes the installation of rip rap,
planting of native vegetation and construction of stormwater swales. Project completion is
scheduled for July 2017.
The City maintained an active stormwater system maintenance program in 2016. 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.
Major 2017 Wastewater and Stormwater Projects
Capital projects to be initiated or completed by PWS in 2017 are numerous and much needed for
improvements to both the City's Wastewater and Stormwater systems. These capital projects will
be funded through a number of sources including Enterprise Funds (Stormwater and
Wastewater), an approved SRF loan from FDEP, and grants from various agencies (e.g.,
SJRWMD).
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The Honorable Mayor,et al
The Oxidation Ditch Improvements Project includes the complete redesign of the Oxidation
Ditch system at the WWTP. 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 installation of a cover
over the existing Oxidation Ditch to limit offsite spray. Construction is scheduled to begin in
January 2017.
Phases II/III of the Holman Road Sanitary Sewer Improvements Project will be completed to
increase sewer capacity in anticipation of further development in the central portion of the City.
The sanitary sewer line from Holman Road to Lift Station No. 2 will be replaced with a 10-inch
diameter pipe. Construction of Phase I was completed in May 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 December
2017.
Numerous other larger-scope wastewater and stormwater projects will be initiated or completed
in 2017 including:
•Emergency generators will be purchased/installed at the following facilities: WWTP, the
new City Hall and the BCSO Annex/old City Hall;
•Lift Station No. 5 located on Columbia Drive will be rehabilitated;
•The Intermediate Pump Station at the WWTP will be rebuilt to allow for larger flows and
eliminate overflows;
•Force Main No. 3 from Lift Station No. 3 (West Central Boulevard) to the WWTP will be
replaced; and
•Five nutrient-separating baffle boxes will be upgraded.
Numerous smaller-scope wastewater and stormwater projects will be completed or initiated in
2017 including:
•RAS pump and motor replacements;
•WAS pump and motor replacements;
•IRP pump and motor replacements;
•Reclaimed water pump replacements;
•Lift station pump replacements;
•Transfer basin pump and motor replacements;
•Improvements to the de-grit system;
•Sludge holding blower replacements;
•Improvements to the WWTP SCADA system; and
•Construction of numerous swales and exfiltration trenches along the BRL shoreline.
PWS Staff will also continue to assist other departments in the completion of City infrastructure
improvement projects.
Branding. The City of Cape Canaveral Branding Initiative was completed in 2015 and 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.
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The Honorable Mayor,et al
City Hall Proiect. The current City Hall facility was built in 1966/67 and has served the City
well; however, it no longer meets the City's needs. Core City Hall services have been separated,
with the Community Development Department located across the street (I 10 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 facility will be utilized as the City's Cultural
Heritage 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.
As part of this project, a portion of the Polk Avenue right-of-way has been closed to
accommodate the creation of a paver brick piazza/plaza adjacent to AIA. 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 was started in
April 2016; occupancy is anticipated in April 2017.
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Economic Opportunity Overlay District (FOOD). 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. The EOOD includes properties adjacent
to Port Canaveral and certain residential properties adjacent to the Banana River. This makes
waterfront destinations possible—another goal of the Visioning Initiative.
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The Honorable Mayor,et al
Special Exception Process. With the adoption of Ordinance No. 02-2016, the City Council
fundamentally retooled the City's special exception process.
In an effort to remain competitive and transform how the City does business, this effort largely
replaced the current special exception process with one that is more predictable and streamlined.
Many uses that were processed as a special exception are now considered permitted uses in the
various zoning districts. To ensure compatibility with adjacent uses, the ordinance also created
use-specific development standards that the newly-created permitted uses will have to meet.
Certain uses will continue to be considered through the special exception process. Due to their
nature, these uses require a heightened level of public scrutiny and involvement. These include
pain management clinics, medical marijuana treatment centers, establishments that serve
alcoholic beverages on-site (bars) and automotive service stations.
Leisure Services Enhancements. The Banana River Park Phase I Project began in September
2015 and was completed in May of 2016. This Phase consisted of a restroom/pavilion, south
parking lot, sidewalk extensions, landscaping and water side amenities. Phase II of construction
followed in FY15/16 and consisted of a north parking lot expansion/paving, synthetic putting
green and kayak dock. Finally, Phase III commenced in August of 2016 and was completed in
December of 2016. This phase consisted of two synthetic bocce ball courts, shade shelter and
shade canopy for existing playground.
The little league field's east dugout at Canaveral City Park was demolished and construction of a
new dugout commenced in September of 2016. Construction is due to be completed in March of
2017. The five tennis courts of the Nancy Hanson Recreation complex were resurfaced. The
process involved repairing cracks, leveling surface, installing a fiberglass membrane over courts
and applying a two-step surfacing product over the courts. The exterior of the racquetball courts
and Nancy Hanson Recreation Complex were painted, completing capital preventative
maintenance projects to the facility.
Community Ensmement. The first community garden was created in 2016 with funds donated
by Council Member Brendan McMillin and with grant funds from the National Recreation and
Parks Association (NRPA). The community garden is located inside Patriots Park between Long
Point Rd and Columbia Rd. The community garden project was an idea submitted by residents
and City Council members. Staff from Community Engagement, Building Department and
Public Works Services worked together to permit, design and build the garden. Gardeners of all
ages and experience levels were invited to plant their boxes in a lottery drawn in September
2016. Gardeners/boxes will be rotated with a new lottery of interested residents biannually.
Staff from Community Engagement, Building Department and Public Works Services installed
two (2) electric vehicle chargers at the Canaveral Public Library in September 2016. These two
(2) designated chargers are the City of Cape Canaveral's first free to the public charging stations.
The electric vehicle chargers were researched and purchased as an initiative in line with the Cape
Canaveral Vision Statement and upcoming Sustainability Plan. The designated chargers were
installed at the Canaveral Public Library because of the proximity to City Hall, the Nancy
Hanson Recreation Complex, future City Hall Plaza and public beach access.
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The Honorable Mayor,et al
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 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 Wastewater and Stormwater enterprise funds have long term debt of$4,107,608. The
City has already secured two new State Revolving Fund Loans for Wastewater Treatment &
Reuse Facilities/Stormwater Management Facilities at a low 1.68% interest rate. The FY 16-17
Budget encompasses $3,250,000 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, 2015. This was the 21st 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 De:Lec David L. Grcenc.
Administrative/Financial Services Directeur City Manager
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Organizational Chart
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Go ve m ent FI nance Officers Assodatto n
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Reporfing
Presented to
City of Cape Canaveral
Florida
For its Comprch nsive Annual
Financial Report
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September 30, 201
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Execukive Director/CEO
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Financial Section
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Independent Auditors' Report
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AA James Moore
Certified PAJ,c Accountants and Cansult$nts
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, 2016, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
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, 2016, and the respective
changes in financial position and where applicable, cash flows and the respective budgetary comparisons
for the General and Cape Canaveral CRA funds for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
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121 Executive Circle 5931 IOW 1st Place 2477 Tim Gamble Place,Suite 200
Daytona Beach,FL 32114-1180 Gainesville,FL 32607-2063 Tallahassee,FL 32308-4386
Telephone:3861257-4109 Telephone:3521378-1331 Telephone:8501386-6184
Fax:3861255-3261 Fax:352/372-3741 Fax:8501422-2074
dab@ijmco.com gnv@jmco.com tlh9jmc0.com
Member of ACM International with offices in principal cities worldwide
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management'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 formingopinions on the financial statements that collectively
comprise the City's financial statements as a whole. The introductory section, combining and individual
nonmajor fund financial statements, and statistical section are presented for purposes of additional
analysis and are not arequired part of the basic financial statements. The accompanying schedule of
expenditures of federal awards and state financial assistance as required by Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirementsor Federal Awards (Uniform Guidance), and Section 215.97, Florida States, Florida
Single Audit Act, 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 federal
awards and 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 combining
and individual nonmajor fund financial statements and schedule of expenditures of federal awards and
state financial assistance are 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,
2017, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control over financial
reporting and compliance.
Daytona Beach,Florida
February 8,2017
- 26 -
Management's Discussion
and Analysis
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THIS PAGE INTENTIONALLY LEFT BLANK.
- 28 -
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, 2016.
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 $46.1
million (net position). Of this amount, $9 million (unrestricted net position) may be used to
meet the City's ongoing obligations.
• The City's total net position increased by $4.98 million. This is the result of construction
projects completed during the year and the addition of capital assets, funded primarily through
capital contributions and grants.
• At the close of the fiscal year, the City's governmental funds reported combined ending fund
balances of$7.63 million,a decrease of$2.1 million in comparison with the prior year.
• At the close of the fiscal year, fund balance for the General Fund was $7,004,754. Of this
amount $96,734 relates to inventory and prepaids as well as long term advances and is
therefore nonspendable. The remaining fund balance includes: restricted ($447,214),
committed ($2,479,667) and unassigned ($3,981,139) balances. Within the committed fund
balance category,the largest piece is $2,098,515 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 $1.49 million. This was due primarily to receipt
of additional State Revolving Fund monies 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 cashflows. 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,
-29-
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 fund is a grouping of related accounts used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and
local governments,uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into two categories: governmental funds and
proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements.However,unlike the government-
wide financial statements, governmental fund financial statements focus on near-term inflows and
ouflows of spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government's near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the City's near-term financing decisions. Both
the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The City maintains nine individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and
changes in fund balances for the General Fund, Cape Canaveral Community Redevelopment Agency
Fund, Capital Construction Fund and Enterprise Capital Fund, all of which are considered to be major
funds. Financial data from the other five governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major governmental funds is provided in the form
of combining statements presented in the supplementary information section of this report.
The City adopts an annual appropriated budget for its governmental funds. Budgetary comparison
statements for the major and non-major funds have been provided to demonstrate compliance with the
budget in this report.
The basic governmental fund financial statements can be found on pages 44—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.
- 30-
City of Cape Canaveral,Florida
Management's Discussion and Analysis
Other information. In addition to the basic financial statements and accompanying notes,this report also
presents certain required supplementary information concerning the funding of Other Post-Employment
Benefits. Required supplementary information and the related footnotes can be found on page 76 of this
report.
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 $46.1 million at the
close of the 2016 fiscal year.
By far the largest portion of the City's net position, $35.2 million (76.4%) 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. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
City of Cape Canaveral, Florida
Statement of Net Position
Governmental Activities Business-type Activities Total
2016 2015 2016 2015 2016 2015
Current and other assets $ 9,017,973 $ 10,858,484 $ 3,761,603 $ 3,014,558 $ 12,779,576 $ 13,873,042
Capital Assets(Net) 22,475,928 18,324,999 21,360,095 17,943,665 43,836,023 36,268,664
Total Assets 31,493,901 29,183,483 25,121,698 20,958,223 56,615,599 50,141,706
Current and other liabilitic 2,072,900 1,760,838 241,184 545,609 2,314,084 2,306,447
Long-term Liabilities 4,036,361 4,553,380 4,146,099 2,143,668 8,182,460 6,697,048
Total Liabilities 6,109,261 6,314,218 4,387,283 2,689,277 10,496,544 9,003,495
Net Position:
Net Investment in
Capital Assets 17,995,928 13,333,909 17,252,487 15,697,879 35,248,415 29,031,788
Restricted 1,538,482 1,691,174 327,160 175,579 1,865,642 1,866,753
Unrestricted 5,850,230 7,844,092 3,154,768 2,395,488 9,004,998 10,239,580
Total Net Position $ 25,384,640 $ 22,869,175 $ 20,734,415 $ 18,268,946 $ 46,119,055 $ 41,138,121
- 31 -
City of Cape Canaveral,Florida
Management's Discussion and Analysis
A portion of the City's net position, $1,865,642, or 4% of total net position, represents resources that are
subject to external restriction on how they may be used. The balance of unrestricted net position totaling
$9,004,998 may be used to meet the City's ongoing obligations to citizens and creditors and to provide
funding for various projects.
At September 30, 2016, 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$2,515,465. The
increase for business-type activities was$2,465,469.
City of Cape Canaveral,Florida
Changes in Net Position
Governmental Activities Business-type Activities Total
2016 2015 2016 2015 2016 2015
REVENUES
Program Revenues:
Charges for Services $ 1,666,860 $ 1,763,130 $ 4,681,839 $ 4,313,504 $ 6,348,699 $ 6,076,634
Operating Grants and Contribution: 333,666 303,353 - - 333,666 303,353
Capital Grants and Contnbutions 2,442,355 13,886 1,558,083 - 4,000,438 13,886
General Revenues:
Property Takes 3,349,568 3,280,632 - - 3,349,568 3,280,632
Utility and Franchise Taxes 2,454,174 2,385,223 - - 2,454,174 2,385,223
Intergovernmental 994,390 940,785 - - 994,390 940,785
Investment Income 77,593 80,687 16,769 26,314 94,362 107,001
Miscellaneous 34,642 70,668 4.770 4,688 39.412 75,356
Total Revenues 11,353,248 8,838,364 6,261,461 4,344,506 17,614,709 13,182,870
EXPENSES
General Government 1,610,813 1,506,243 - - 1,610,813 1,506,243
Public Safety 4,806,887 4,533,243 - - 4,806,887 4,533,243
Transportation 968,272 982,291 - - 968,272 982,291
Physical Environment 1,059,367 1,039,747 - - 1,059,367 1,039,747
Culture/Recreation 640,356 570,491 - - 640,356 570,491
Interest on long-term debt 94,236 104,385 - - 94,236 104,385
Wastewater - - 2,916,035 2,873,515 2,916,035 2,873,515
Stomavater - - 537,809 526,065 537,809 526,065
Total Fkpenses 9,179,931 8,736,400 3,453,844 3,399,580 12,633,775 12,135,980
Excess(Deficiency)Before Transfers 2,173,317 103,964 2,807,617 944,926 4,980,934 1,046,890
Transfers 342,148 329,400 (342,148) (329,400) - -
Change in Net Position 2,515,465 433,364 2,465,469 615,526 4,980,934 1,046,890
NetPosition-Beginning 22,869,175 22,435,811 18,268,946 17,653,420 41,138,121 40,089,231
NetPosition-Ending $ 25,384,640 $ 22,869,175 $ 20,734,415 $ 18,268,946 $ 46,119,055 $ 41,136,121
- 32 -
City of Cape Canaveral,Florida
Management's Discussion and Analysis
Statement of Activities
Governmental activities:
The Changes in Net Position Table on page 31 reflects a governmental revenue increase of$2,514,884, an
increase of 28.45% from the previous fiscal year. This increase reflects both program and general
revenues. Governmental program revenues increased $2,362,512, a 113.56% increase from 2015. This
increase is primarily the result of an increase in Capital Grants and Contributions of$2,428,469 offset by
a decrease of$96,270 in Charges for Services.
■ Utility and Franchise Revenues by Source-Governmental Activities
22%
■intergovernmental (does not include transfers)
revenues
9%
■ Operating grants and
contributions
3%
■Property tax
o Investment income
29% _ 1%
Miscellaneous
0%
U Capita is and
contributions Charges for services
21% 15%
The remaining change relates to general revenues and changes in governmental expenses. Significant
factors include the following:
• Property taxes increased $68,936 from 2015. However, by the end of Calendar Year 2015
property values increased by 8.4%.
• Utility and Franchise Tax revenues increased $68,951 over the prior year. This increase of 3%
was the result of increased consumption of both electricity and gas.
• Intergovernmental income increased $53,605 over the revenue for 2015. This increase related to
revenues received from the county for the Community Redevelopment Agency increase in
valuation and various State revenue sharing entities.
• Expenses for governmental activities increased slightly, showing a 5.1% increase over 2015
amounts. The most significant increases related to increases in Public Safety of$273,644,Culture
and Recreation increased $68,865, and General Government $104,570. These increases were
offset by a decrease in Transportation ($14,019) and Interest ($10,149). The increase in General
Government includes payment of increased Legal Service fees and additional employee benefits;
while the Public Safety increase resulted from increased contract costs; and the increase in
Culture and Recreation was primarily caused by the completion of Phase I of the Banana River
Park Project.
- 33 -
City of Cape Canaveral,Florida
Management's Discussion and Analysis
loo°)Expenses and Program Revenues - Governmental Activities
■O- —
50%
0% ■Program
Revenues
CSS' S� �~ `�� � �G•'
Business-type activities
Business-type activities experienced an increase in net position of$2,465,469,or 13.5%.
• The major source of revenue for business-type activities is charges for services, which
increased$368,335 (8.5%). This was the result of a Wastewater rate increase and a Reclaimed
Water rate increase and impact fees for the new hotel totaling $362,195 during 2016.
• Capital grants accounted for approximately $1.56 million of the increase.
• Investment income decreased by $9,545 (36.3%). Most of this revenue decrease related to
smaller cash balances on hand due to construction during 2016.
• Expenses for both Wastewater and Stormwater operations remained fairly constant during
2016. The increase for all Business-type activities was only $54,729 or 1.6%.
Expenses & Program Revenues J Expenses
Business-type Activities
J Program Revenues
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Wastewater Stormwater
- 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 $7,631,744, a
decrease of$2,149,260,or 22%from the prior fiscal year.
The General Fund,the City's main governmental fund,experienced an overall decrease in fund balance of
$1,622,048 or 18.8%. The most significant reason for this decrease can be contributed to a transfer to the
Capital Construction Fund of$1,658,059 for the construction City Hall.
General Fund Current Expenditures by Function
60.0% M General Government
50.0% f r ■Public Safety
Transportation
40.0% ■Physical Environment
30.0% ■Culture/Recreation
20.0% ■Capital Outlay
10.0%
0.0% t
FYI FYI
- 35 -
City of Cape Canaveral,Florida
Management's Discussion and Analysis
The General Fund is the City's chief operating fund. At the end of the current fiscal year, total fund
balance was $7,004,754. Of this amount $96,734 relates to inventory and prepaids as well as long term
advances and is therefore nonspendable. The remaining fund balance includes restricted ($447,214),
committed ($2,479,667), and unassigned ($3,981,139). Within the committed fund balance category, the
largest piece is $2,098,515 for the construction of the new City Hall. The unassigned fund balance
represents 39.23%of the total general fund expenditures. The total fund balance represents 69.02%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
negative fund balance of($466,535) at September 30, 2016. This is a significant decline over the $21,363
positive fund balance as of September 30, 2015. This negative fund balance is the result of $474,929
transferred to the Wastewater Fund for the portion of a wastewater capital project within the CRA district.
The Enterprise Capital Fund has zero fund balance at September 30, 2016. Capital expenditures in this
fund are related to major Wastewater/Stormwater Projects. The Capital Construction Fund has restricted
fund balance of $710,407 at September 30, 2016. This fund is used for the acquisition of land and
construction of major capital facilities for governmental funds.
Nonmajor Special Revenue funds maintained fund balances at the end of the fiscal year of:
• Police Education Fund$19,553
• Fire Protection Fund$7,256
• School Crossing Guard$2,257
• Library Fund$347,432
• Special Law Enforcement Trust$6,620
All fund balances of the Non-major governmental funds are restricted by an outside party as to use,
except the School Crossing Guard Fund which is committed for public safety.
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 $1,414,816,
and the Stormwater Utility amounted to $1,739,952. The total increase in net position for the Wastewater
Utility Fund was $1,557,933, and the increase for the Stormwater Utility was $907,536. The fund level
proprietary statements reflect capital contributions of$4,477,481. These are capital outlay expenditures in
the Enterprise Capital Fund for construction in progress, equipment, and other capital improvements that
were contributed to the Wastewater Fund ($3,497,674) and Stormwater Fund ($979,807). At the entity
wide level,these amounts are reflected as transfers in. Other factors concerning the finances of these two
funds have already been addressed in the discussion of the City's business-type activities.
General Fund Budgetary Highlights
At the end of FY16, as of result of amendments made during the year, the final amended budget
decreased $1,307,442 from the adopted budget. The most significant change was related to a decrease in
general government ($478,539), public safety ($335,473), transportation ($76,933), culture/recreation
($13,619) and capital outlay($411,244),offset by an increase of$8,367 for physical environment.
- 36-
City of Cape Canaveral,Florida
Management's Discussion and Analysis
$16,000,000 General Fund Actual vs Bu ets
$14,000,000
$12,000,000 —E—Final Budget
$10,000,000 --#--Actual Ex nditures
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
��e�
4
During the year, actual revenues on a budgetary basis were $9,335,812. This was equal to the final
budgetary estimate of$9,335,812.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, 2016, amounts to $43,836,023, 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
$7,567,449. An increase of$4,151,019 (23%) in governmental activities and an increase of$3,416,430
(19%)for business-type activities make up the total.
Significant capital asset events during the current fiscal year included the following:
• Florida Department of Transportation (FDOT) funded portion of the North Atlantic Avenue
Strectscape Project was completed in December 2016. 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. The Project included construction of a new pedway and
sidewalks, lighting and stormwater improvements, landscaping improvements and numerous
decorative features. Additional improvements and beautification tasks will be completed in
2017.
• Lift Stations No. 6 (Imperial Drive) and No. 7 (West Central Boulevard) were replaced and
enlarged in anticipation of continued development in the northern portion of the City. Lift
Station No. 7 was relocated to City-owned property in Manatee Sanctuary Park for easier
access to conduct maintenance activities. Emergency generators were also installed at each of
the lift stations. Project completion was in December 2016.
- 37-
City of Cape Canaveral,Florida
Management's Discussion and Analysis
• Phase I of the Holman Road Sanitary Sewer Improvements Project was completed to alleviate
sewer back-up in a residence along Holman Road and to increase sewer capacity. The sanitary
sewer line located beneath Holman Road was replaced with a 10-inch diameter pipe. The
Work was the first phase of a three-phased Project to replace the entire sanitary sewer line to
Lift Station No. 2 located along Center Street. Construction of Phase I was completed in May
2016.
• Major construction was completed on the Canaveral City Park Ex-filtration Project including
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 discharged to the BRL. Major
construction was completed in December 2016; ancillary construction will be completed in
January 2017.
• The City maintained an active stormwater system maintenance program in 2016. 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.
Additional information on the City's capital assets can be found on page 65 - 66 of this report.
City of Cape Canaveral's Capital Assets (net
of depreciation)
Governmental Activities Business-type Activities Total
2016 2015 2016 2015 2016 2015
Land $ 7,248,237 $ 7,248,237 $ 351,084 $ 351,084 $ 7,599,321 $ 7,599,321
Buildings and Improvements 4,749,885 4,751,031 5,290,934 5,215,495 10,040,819 9,966,526
Machinery and Equipment 3,417,620 3,015,508 6,184,510 1,925,611 9,602,130 4,941,119
Infrastructure 7,190,393 7,061,579 24,271,878 22,774,057 31,462,271 29,835,636
Construction in Progress 5,176,002 964,267 1,798,644 3,132,555 6,974,646 4,096,822
27,782,137 23,040,622 37,897,050 33,398,802 65,679,187 56,439,424
Less:Accumulated Depreciation (5,306,209) (4,715,713) (16,536,955) (15,455,137) (21,843,164) (20,170,850)
Capital Assets,net $ 22,475,928 $ 18,324,909 $ 21,360,095 $ 17,943,665 $ 43,836,023 $ 36,268,574
Long-term debt. At the end of the current fiscal year, the City had a total long-term debt outstanding of
$8,587,608.
The business-type activities long term debt is from a State Revolving Loan related to Wastewater System
improvements constructed in 1995. 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 projecting progress, and both completed Fire Station and Main Wastewater Treatment
Plant Building Refurbishment.
Additional information on the City of Cape Canaveral's long-term debt can be found on pages 66 - 68 of
this report.
- 38 -
City of Cape Canaveral,Florida
Management's Discussion and Analysis
City of Cape Canaveral's Outstanding Debt
General Obligation
Governmental Activities Business-type Activities Total
2016 2015 2016 2015 2016 2015
Revenue Note $ 4,480,000 $ 4,991,000 $ - $ - $ 4,480,000 $ 4,991,000
State revolving loans - - 4,107,608 2,245,786 4,107,608 2,245,786
$ 4,480,000 $ 4,991,000 $ 4,107,608 $ 2,245,786 $ 8,587,608 $ 7,236,786
Economic Factors and Next Year's Budgets and Rates
• The unemployment rate decreased from 5.4%in the prior year to 4.6%.
• The real estate market continues to trend upward. Property values for Calendar Year 2016
showed an increase of 11.4%. The median home sales price rose to $175,600 up from
$155,420 at the end of 2015.
• 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 2015 enhanced revenue. The City maintained Ad
valorem taxes at fiscal 2015 rates in the 2016 budget by implementing a millage rate that was
lower than the previous year.
All of these factors were considered in preparing the City's budget for the 2017 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-
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- 40 -
Basic Financial Statements
- 41 -
CITY OF CAPE CANAVERAL,FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30,2016
Primary Government
Governmental Business-Type
Activities Activities Total
Assets
Equity in pooled cash and investments $ 8,240,658 $ 1,229,475 $ 9,470,133
Receivables,net 317,504 - 317,504
Due from other governments 839,985 1,744,567 2,584,552
Interfund balances (420,785) 420,785 -
Inventories and prepaid items 15,012 439 15,451
Restricted assets:
Equity in pooled cash and investments 25,599 366,337 391,936
Capital assets:
Total capital assets,not being depreciated 12,424,239 2,149,728 14,573,967
Total capital assets,being depreciated,net of
accumulated depreciation 10,051,689 19,210,367 29,262,056
Total Assets $ 31,493,901 $ 25,121,698 $ 56,615,599
Liabilities
Accounts payable and accrued liabilities $ 1,298,003 $ 136,274 $ 1,434,277
Unearned revenue and deposits 62,627 - 62,627
Payable from restricted assets:
Accrued interest payable - 39,177 39,177
Zoning escrow 25,599 - 25,599
Noncurrent liabilities:
Due within one year:
Long-term debt 521,000 - 521,000
Compensated absences payable 165,671 65,733 231,404
Due in more than one year:
Long-term debt 3,959,000 4,107,608 8,066,608
Compensated absences payable 41,418 16,434 57,852
Net OPEB obligation 35,943 22,057 58,000
Total Liabilities $ 6,109,261 $ 4,387,283 $ 10,496,544
Net Position
Net investment in capital assets $ 17,995,928 $ 17,252,487 $ 35,248,415
Restricted for:
Recycled products 50,562 - 50,562
Tree mitigation 132,607 - 132,607
Debt service 264,045 - 264,045
Public safety 33,429 - 33,429
Culture/recreation 347,432 - 347,432
Capital expansion 710,407 327,160 1,037,567
Unrestricted 5,850,230 3,154,768 9,004,998
Total Net Position $ 25,384,640 $ 20,734,415 $ 46,119,055
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 30,2016
Net(Expense)Revenue and
Program Revenues Changes in Net Position
Primary Government
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
Functions/Programs
Governmental activities
General government $ 1,610,813 $ 49,413 $ $ $ (1,561,400) $ $ (1,561,400)
Public safety 4,806,887 471,722 (4,335,165) (4,335,165)
Transportation 968,272 - 333,666 2,251,683 1,617,077 1,617,077
Physical environment 1,059,367 1,058,515 - - (852) (852)
Culture/recreation 640,356 87,210 190,672 (362,474) (362,474)
Interest on long-term debt 94,236 - - - (94,236) (94,236)
Total governmental activities 9,179,931 1,666,860 333,666 2,442,355 (41737,050) (4,737,050)
Business-type activities
Wastewater 2,916,035 4,099,508 - 687,079 - 1,870,552 1,870,552
Stormwater 537,809 582,331 871,004 915,526 915,526
Total business-type activities 3,453,844 4,681,839 - 1,558,083 2,786,078 2,786,078
Total primary government $ 12,633,775 $ 6,348,699 $ 333,666 $ 4,000,438 (4,737,050) 2,786,078 (1,950,972)
General revenues
Property taxes 3,349,568 - 3,349,568
Utility and franchise taxes 2,454,174 2,454,174
Intergovernmental revenues,unrestricted 994,390 - 994,390
Investment income 77,593 16,769 94,362
Miscellaneous revenues 34,642 4,770 39,412
Transfers 342,148 (342,148) -
Total general revenues and transfers 7,252,515 (320,609) 6,931,906
Change in net position 2,515,465 2,465,469 4,980,934
Net position,beginning of year 22,869,175 18,268,946 41,138,121
Net position,end of year $ 25,384,640 $20,734,415 $46,119,055
The accompanying notes to financial statements
are an integral part of this statement.
-43-
CITY OF CAPE CANAVERAL,FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30,2016
Cape Canaveral Capital Enterprise Nonmajor Total
General CRA Construction Capital Governmental Governmental
Fund Fund Fund Fund Funds Funds
Assets
Equity in pooled cash and investments $ 6,304,734 $ 38,362 $ 949,832 $ 590,252 $ 383,077 $ 8,266,257
Receivables 317,504 - - - - 317,504
Due from other governments 576,363 263,401 221 839,985
Advances to other funds 81,722 - - 81,722
Inventories and prepaid items 15,012 - - - 15,012
Total assets $ 7,295,335 $ 38,362 $ 1,213,233 $ 590,252 $ 383,298 $ 9,520,480
Liabilities
Accounts payable and accrued liabilities $ 202,355 $ 2,390 $ 502,826 $ 590,252 $ 180 $ 1,298,003
Zoning escrow 25,599 - - - - 25,599
Unearned revenue and deposits 62,627 - - - 62,627
Advances from other funds - 502,507 - - 502,507
Total liabilities $ 290,581 $ 504,897 $ 502,826 $ 590,252 $ 180 $ 1,888,736
Fund Balances
Nonspendable:
Inventories and prepaids $ 15,012 $ - $ - $ - $ - $ 15,012
Long-term interfund advance 81,722 - - 81,722
Restricted for:
Tree mitigation 132,607 - - 132,607
Recycled products 50,562 - - 50,562
Debt Service 264,045 - - - - 264,045
Public safety - - - - 33,429 33,429
Culture/recreation - - - - 347,432 347,432
Capital expansion - - 710,407 - - 710,407
Committed to:
Capital equipment renewal and replacement 190,697 - - - - 190,697
New facility 2,098,515 - - - - 2,098,515
Recreation expansion 110,578 - - - - 110,578
Police expansion 79,877 - - - - 79,877
Public safety - - - - 2,257 2,257
Unassigned 3,981,139 (466,535) - - - 3,514,604
Total fund balances $ 7,004,754 $ (466,535) $ 710,407 $ - $ 383,118 $ 7,631,744
The accompanying notes to financial statements
are an integral part of this statement.
-44-
CITY OF CAPE CANAVERAL,FLORIDA
RECONCILIATION OF THE BALANCE SHEET OF THE
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30,2016
Fund Balances-Total Governmental Funds $ 7,631,744
Amounts reported for governmental activities in the statement
of net position are different because:
Capital assets used in governmental activities are not financial
resources and,therefore, are not reported in the funds.
Governmental capital assets 27,782,137
Accumulated depreciation (5,306,209)
22,475,928
Long-term liabilities are not due and payable in the current
period, and therefore,are not reported in the funds.All liabilities,
both current and non-current, are reported in the statement
of net position. Long term liabilities at year end consist of-
Long-term debt (4,480,000)
Compensated absences payable (207,089)
Net OPEB obligation (35,943)
(4,723,032)
Net Position of Governmental Activities $ 25,384,640
The accompanying notes to financial statements
are an integral part of this statement.
- 45 -
CITY OF CAPE CANAVERAL,FLORIDA
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN
FUND BALANCES-GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2016
Cape Canaveral Capital Enterprise Nonmajor Total
General CRA Construction Capital Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
Taxes:
Property $ 3,289,539 $ $ $ $ 60,029 $ 3,349,568
Local option motor fuel 333,666 - 333,666
Utility and franchise 2,385,437 2,385,437
Intergovernmental 1,210,751 273,356 1,427,636 2,911,743
Licenses and permits 218,773 - - 218,773
Charges for services 1,184,568 - 1,184,568
Fines and forfeitures 28,012 1,678 29,690
Impact fees 534,633 - 22,356 556,989
Investment earnings 66,256 5,954 5,383 77,593
Miscellaneous 84,177 - 2,124 86,301
Total revenues 9,335,812 273,356 1,433,590 - 91,570 11,134,328
Expenditures
Current:
General government 1,679,235 6,709 - 32,297 1,718,241
Public safety 4,543,950 - 3,484 4,547,434
Transportation 714,108 - 714,108
Physical environment 1,059,367 1,059,367
Culture/recreation 529,267 - - - - 529,267
Capital outlay 1,018,281 279,616 3,128,212 4,477,481 30,084 8,933,674
Debt service:
Principal 511,000 - - - - 511,000
Interest 94,236 - - - - 94,236
Total expenditures 10,149,444 286,325 3,128,212 4,477,481 65,865 18,107,327
Excess(deficiency)of revenues
over expenditures (813,632) (12,969) (1,694,622) (4,477,481) 25,705 (6,972,999)
Other financing sources
Proceeds from sale of assets 4,110 - - - 4,110
Transfers in 845,533 1,658,059 4,475,483 6,979,075
Transfers out (1,658,059) (474,929) - - (26,458) (2,159,446)
Total other financing sources(uses) (808,416) (474,929) 1,658,059 4,475,483 (26,458) 4,823,739
Net change in fund balances (1,622,048) (487,898) (36,563) (1,998) (753) (2,149,260)
Fund balances,beginning of year 8,626,802 21,363 746,970 1,998 383,871 9,781,004
Fund balances,end of year $ 7,004,754 $ (466,535) $ 710,407 $ $ 383,118 $ 7,631,744
The accompanying notes to financial statements
are an integral part of this statement.
-46-
CITY OF CAPE CANAVERAL,FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2016
Net Change in Fund Balances - Total Governmental Funds $ (2,149,260)
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 8,933,674
Contributed capital assets 348,747
Less: Current year depreciation (638,448)
8,643,973
Property and equipment contributed from the Enterprise Capital
fund to the Enterprise funds (4,477,481)
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. (15,473)
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. Repayment
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:
Principal repayment of general long-term debt 511,000
Some expenses reported in the statement of activities do not require
the use of current financial resources and,therefore,are not
reported as expenditures in governmental funds.
Compensated absences payable 8,359
Net OPEB obligation (5,653)
2,706
Change in Net Position of Governmental Activities $ 2,515,465
The accompanying notes to financial statements
are an integral part of this statement.
- 47 -
CITY OF CAPE CANAVERAL,FLORIDA
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCES-BUDGET TO ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30,2016
Budgeted Amounts Variance
Positive
Original Final Actual (Negative)
Revenues
Taxes:
Property $ 3,292,961 $ 3,289,539 $ 3,289,539 $ -
Local option motor fuel 319,451 333,666 333,666 -
Utility and franchise 2,424,600 2,385,437 2,385,437 -
Intergovernmental 1,216,211 1,210,751 1,210,751 -
Licenses and permits 220,952 218,773 218,773 -
Charges for services 1,175,577 1,184,568 1,184,568 -
Fines and forfeitures 76,600 28,012 28,012 -
Impact fees 62,434 534,633 534,633 -
Investment earnings 63,096 66,256 66,256 -
Miscellaneous 97,640 84,177 84,177 -
Total revenues 8,949,522 9,335,812 9,335,812 -
Expenditures
Current:
General government 2,157,774 1,679,235 1,679,235 -
Public safety 4,879,423 4,543,950 4,543,950 -
Transportation 791,041 714,108 714,108 -
Physical environment 1,051,000 1,059,367 1,059,367 -
Culture/recreation 489,578 475,959 475,959 -
Capital outlay 1,482,833 1,071,589 1,071,589 -
Debt service:
Principal 511,000 511,000 511,000 -
Interest 94,237 94,236 94,236 -
Total expenditures 11,456,886 10,149,444 10,149,444 -
Excess(deficiency) of revenues
over expenditures (2,507,364) (813,632) (813,632) -
Other financing sources
Proceeds from sale of assets 56,000 4,110 4,110 -
Transfers in 854,845 845,533 845,533 -
Transfers out (2,300,000) (1,658,059) (1,658,059) -
Total other financing sources (1,389,155) (808,416) (808,416) -
Net change in fund balances (3,896,519) (1,622,048) (1,622,048) -
Fund balances,beginning of year 8,626,802 8,626,802 8,626,802 -
Fund balances,end of year $ 4,730,283 $ 7,004,754 $ 7,004,754 $ -
The accompanying notes to financial statements
are an integral part of this statement.
-48 -
CITY OF CAPE CANAVERAL,FLORIDA
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCES-BUDGET TO ACTUAL
CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY FUND
FOR THE YEAR ENDED SEPTEMBER 30,2016
Budgeted Amounts Variance
Positive
Original Final Actual (Negative)
Revenues
Intergovernmental $ 261,562 $ 273,356 $ 273,356 $ -
Investment earnings 501 - - -
Total revenues 262,063 273,356 273,356 -
Expenditures
Current:
General government 58,607 6,709 6,709 -
Capital outlay 140,000 279,616 279,616 -
Total expenditures 198,607 286,325 286,325 -
Excess(deficiency)of revenues
over expenditures 63,456 (12,969) (12,969) -
Other financing sources
Transfers out (63,456) (54,144) (474,929) (420,785)
Total other financing sources (63,456) (54,144) (474,929) (420,785)
Net change in fund balances - (67,113) (487,898) (420,785)
Fund balances,beginning of year 21,363 21,363 21,363 -
Fund balances,end of year $ 21,363 $ (45,750) $ (466,535) $ (420,785)
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 30,2016
Business-type Activities-Enterprise Funds
Wastewater Fund Stormwater Fund Total
Assets
Current assets:
Equity in pooled cash and investments $ 1,152,507 $ 76,968 $ 1,229,475
Due from other governments 761,194 983,373 1,744,567
Due from other funds - 762,620 762,620
Advance to other funds 420,785 - 420,785
Inventories and prepaid items 408 31 439
Restricted assets:
Equity in pooled cash and investments 355,106 11,231 366,337
Total current assets 2,690,000 1,834,223 4,524,223
Capital assets:
Total capital assets,not being depreciated 983,954 1,165,774 2,149,728
Total capital assets,being depreciated,net of
accumulated depreciation 17,399,724 1,810,643 19,210,367
Capital assets,net 18,383,678 2,976,417 21,360,095
Total Assets $ 21,073,678 $ 4,810,640 $ 25,884,318
Liabilities
Current liabilities:
Accounts payable and accrued liabilities $ 79,820 $ 56,454 $ 136,274
Due to other funds 762,620 - 762,620
Current portion of compensated absences 45,741 19,992 65,733
Liabilities payable from current restricted assets:
Accrued interest payable 27,946 11,231 39,177
Total current liabilities 916,127 87,677 1,003,804
Noncurrent liabilities:
Long-term portion of compensated absences 11,436 4,998 16,434
Long-term debt payable after one year 2,936,660 1,170,948 4,107,608
Net OPEB obligation 20,461 1,596 22,057
Total noncurrent liabilities 2,968,557 1,177,542 4,146,099
Total Liabilities $ 3,884,684 $ 1,265,219 $ 5,149,903
Net Position
Net investment in capital assets $ 15,447,018 $ 1,805,469 $ 17,252,487
Restricted for:
Capital expansion 327,160 - 327,160
Unrestricted 1,414,816 1,739,952 3,154,768
Total Net Position
The accompanying notes to fmancial statements
are an integral part of this statement.
-50-
CITY OF CAPE CANAVERAL,FLORIDA
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2016
Business-type Activities-Enterprise Funds
Wastewater Fund Stormwater Fund Total
Operating revenues
Charges for sales and services:
Wastewater charges $ 4,099,508 $ - $ 4,099,508
Stormwater charges - 582,331 582,331
Miscellaneous - 4,770 4,770
Total operating revenues 4,099,508 587,101 4,686,609
Operating expenses
Operating and maintenance:
Personal services 1,106,085 247,812 1,353,897
Contractual services 73,343 59,125 132,468
Repairs and maintenance 470,356 84,093 554,449
Materials and supplies 253,539 5,008 258,547
Other operating and maintenance - 200 200
Depreciation 991,275 130,122 1,121,397
Total operating expenses 2,894,598 526,360 3,420,958
Operating income 1,204,910 60,741 1,265,651
Nonoperating revenues(expenses)
Capital grants 687,079 871,004 1,558,083
Investment earnings 9,962 6,807 16,769
Loss on sale or disposal of assets (4,715) (2,589) (7,304)
Interest expense (16,722) (8,860) (25,582)
Total nonoperating revenues(expenses) 675,604 866,362 1,541,966
Income before contributions and transfers 1,880,514 927,103 2,807,617
Capital contributions 3,497,674 979,807 4,477,481
Transfers in 473,108 - 473,108
Transfers out (4,293,363) (999,374) (5,292,737)
Change in net position 1,557,933 907,536 2,465,469
Total net position,beginning of year 15,631,061 2,637,885 18,268,946
Total net position,end of year $ 17,188,994 $ 3,545,421 $ 20,734,415
The accompanying notes to financial statements
are an integral part of this statement.
-51-
CTTY OF CAPE CANAVERAL,FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2016
Business-type Activities-Enterprise Funds
Wastewater Fund Stormwater Fund Total
Cash flows from operating activities
Cash received from customers $ 4,026,291 $ 583,086 $ 4,609,377
Cash paid to suppliers (1,008,868) (91,118) (1,099,986)
Cash paid to employees (1,112,754) (251,076) (1,363,830)
Net cash provided by operating activities 1,904,669 240,892 2,145,561
Cash flows from noncapital financing activities
Interfund loans 341,835 (762,620) (420,785)
Transfers in 473,108 473,108
Transfers out (4,293,363) (999,374) (5,292,737)
Net cash used in noncapital financing activities (3,478,420) (1,761,994) (5,240,414)
Cash flows from capital and related financing activities
Principal payments on capital debt (212,648) - (212,648)
Proceeds from issuance of capital debt 1,244,229 762,591 2,006,820
Capital grants 687,079 - 687,079
Interest paid (16,722) (8,860) (25,582)
Net cash provided by capital and related
financing activities 1,701,938 753,731 2,455,669
Cash flows from investing activities
Interest received 9,962 6,807 16,769
Net increase(decrease)in cash and cash equivalents 138,149 (760,564) (622,415)
Cash and cash equivalents,beginning of year 1,369,464 848,763 2,218,227
Cash and cash equivalents,end of year $ 1,507,613 $ 88,199 $ 1,595,812
Reconciliation of operating income to net
cash provided by operating activities
Operating income $ 1,204,910 $ 60,741 $ 1,265,651
Adjustment to reconcile operating income to
net cash provided by operating activities:
Depreciation 991,275 130,122 1,121,397
Decrease(increase)in certain assets:
Accounts receivable (73,217) (4,015) (77,232)
Prepaid expenses (408) (31) (439)
Increase(decrease)in certain liabilities:
Compensated absences payable (8,713) (3,567) (12,280)
Accounts payable and accrued liabilities (222,764) 48,479 (174,285)
Accrued interest payable 11,542 8,860 20,402
Net OPEB liability 2,044 303 2,347
Net cash provided by operating activities $ 1,904,669 $ 240,892 $ 2,145,561
Cash and cash equivalents classsiTied as:
Unrestricted $ 1,152,507 $ 76,968 $ 1,229,475
Restricted 355,106 11,231 366,337
Total cash and cash equivalents $ 1,507,613 $ 88,199 $ 1,595,812
Noncash investing,capital and financing activities:
Contributions of capital assets from capital funds $ 3,497,674 $ 979,807 $ 4,477,481
Capitalized interest added to capital debt balances $ 41,942 $ 25,708 $ 67,650
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 30,2016
(1) Summary of Significant Accounting Policies:
The City of Cape Canaveral,Florida, (the City)was created pursuant to Chapter 73-129, Laws of Florida,
in 1963. The legislative branch of the City is composed of an elected Mayor and four Council Members.
The City Council is governed by the City Charter and by state and local laws and regulations. The City
Council is responsible for the establishment and adoption of policy. The execution of such policy is the
responsibility of the Council-appointed City Manager.
The financial statements of the City of Cape Canaveral,Florida,have been prepared in conformance with
accounting principles generally accepted in the United States of America as applicable to governmental
units. The Governmental Accounting Standards Board (GASB) is the accepted body for promulgating
governmental accounting and financial reporting principles. The following is a summary of the more
significant policies.
(a) Reporting entity—The accompanying financial statements present the financial position,
results of operations and cash flows of the applicable fund types controlled by or dependent on the
City. In evaluating the City as a reporting entity, management has addressed all potential
component units for which the entity may or may not be financially accountable and, as such, be
included within the City's financial statements.
(b) Blended component unit A blended component unit, although legally separate, is, in
substance, part of the City's operations. The following entities are blended with the primary
government and reported as indicated 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.
(c) Government-wide and fund financial statements—The government-wide financial
statements, comprised of the statement of position and the statement of activities, report aggregated
information for the overall government for all of the activities of the primary government. For the
most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes, intergovernmental revenues, and other 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 30,2016
(1) Summary of Significant Accounting Policies: (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function
or activity is offset by program revenues. Direct expenses are those that are clearly identifiable with
a specific function or activity.Program revenues include (1) charges to customers or applicants who
purchase,use, or directly benefit from goods, services, or privileges provided by a given function or
activity, and (2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or activity. Taxes and other 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.
(d) Measurement focus, basis of accounting, and financial statement presentation—The
government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they
are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
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.
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 Agency 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.
- 55 -
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(1) Summary of Significant Accounting Policies: (Continued)
Capital Construction Fund—The Capital Construction Fund accounts for resources
accumulated and payments made for the acquisition of land and construction of major capital
facilities related to governmental funds.
Enterprise Capital Fund—The Enterprise Capital Fund accounts for resources accumulated
and payments made for the acquisition of land and construction of major capital facilities
related to business-type funds.
The City reports the following major proprietary funds:
Wastewater Fund—The Wastewater Fund accounts for the activities of the City's wastewater
system. The City operates the sewage treatment plant, sewage pumping stations, collection,
and reclaimed water systems, which are financially similar to private business enterprises,
where the costs, including depreciation, of providing services to the general public on an
ongoing basis are financed through user charges.
Stormwater Fund—The Stormwater Fund is used to account for the activities of the City's
stormwater management, conservation, protection, control, use and enhancement of
stormwater,the costs of which are recovered by user charges.
Additionally,the City reports the following fund types:
Special Revenue Funds—These funds account for the proceeds of specific revenue sources
(other than capital projects) which are legally restricted or committed to finance particular
functions or activities of the City.
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 defmition 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 30,2016
(1) Summary of Significant Accounting Policies: (Continued)
(e) Budgets and budgetary accounting—Annual budgets for all governmental and proprietary
funds were adopted in compliance with Florida law. The basis on which the budgets are prepared is
consistent with generally accepted accounting principles. Budgetary integration is established in the
accounting records for management control purposes at the object of expenditure level; however the
City Charter establishes the level at which expenditures may not legally exceed the total City-wide
appropriations. The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
(i) On or before June 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 departmental level.
(vi) Every appropriation lapses at the close of the fiscal year.
(f) Cash and cash equivalents ash and cash equivalents include amounts in demand deposits
as well as investments that are readily convertible to known amounts of cash. Investments with
original maturities of three months or less are considered to be cash equivalents. In addition,
investments in money market funds are sufficiently liquid to permit withdrawal of cash at any time
without prior notice or penalty,thus equity in these funds is also deemed to be a cash equivalent.
(g) Receivables—Accounts receivable balances are stated at the amount management expects to
collect from outstanding balances. The City contracts with the City of Cocoa, Florida, for utility
billing services. Therefore, included in the accounts receivables balances, are amounts which have
been billed on behalf of the City, but not yet collected; amounts which have been collected by the
City of Cocoa, but not yet remitted to the City; and amounts earned by the City, but have not been
billed to the customers as of September 30,2016.
(h) Inventories and prepaid items—The cost of inventory is accounted for on the consumption
method wherein inventories are charged as expenditures when used rather than when purchased. All
inventories are valued at cost, which approximates market, by using the first-in, first-out valuation
method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements. The cost of prepaid items
is recorded as expenditures/expenses when consumed rather than when purchased.
(i) Restricted assets--Certain amounts are classified as restricted assets because their use is
limited by applicable debt covenants or laws/regulations imposed by other governmental agencies.
The restricted assets are used to report resources set aside to 1)provide a reserve for debt service,2)
provide for capital expansion, and 3) acquire capital assets.
- 57-
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(1) Summary of Significant Accounting Policies: (Continued)
0) Capital assets--Capital assets, which include property, plant, equipment and infrastructure
assets, are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Property, plant, and equipment with initial, individual costs
that equal or exceed $1,000 and estimated useful lives of over one year are recorded as capital
assets. Capital assets are recorded at historical cost or estimated historical cost, if purchased or
constructed. Contributed assets are recorded at fair market value as of the date received.
Depreciation is reported for the primary government using the straight-line method calculated on a
service-life basis to amortize the cost of the asset over their estimated economic useful lives, which
are as follows:
Assets Years
Buildings and improvements 30- 50
Improvements other than buildings 3 - 20
Machinery and equipment 3 -20
Infrastructure 30 -50
(k) Zoning escrow—This liability is comprised of amounts received from private business to be
used on their behalf for special projects. If the funds are not used, they are to be returned to the
private business. Amounts used are not reported as revenues or expenditures in the accompanying
financial statements.
(1) Compensated absences—The City records the earned portion of accumulated, unused
compensated absences at year-end based on each employee's unused hours and rate of pay,
including the City's share of payroll taxes. All compensated absences are accrued when incurred in
the government-wide and proprietary fund financial statements as accrued liabilities. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result
of employee resignations or retirements.
(m) Unearned revenue and deposits—Tax receipts are recognized as revenue in the period to
which they relate. Monies for the streetscape project are recognized as revenue as the City incurs
allowable costs associated with this project.
(n) Long-term obligations—In the government-wide financial statements, and proprietary fund
financial statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities,business-type activities,or proprietary fund type statement of net
position.
(o) Fund balance—Fund balance of governmental funds is reported in various categories based
on the nature of any limitations requiring the use of resources for specific purposes. The following
classifications describe the relative strength of the spending constraints:
Nonspendable fund balance - amounts that are not in spendable form (such as prepaid
expenses and advances due from other funds)or are required to be maintained intact.
- 58-
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(1) Summary of Significant Accounting Policies: (Continued)
Restricted fund balance - amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government), through constitutional provisions or
by enabling legislation.
Committed fund balance - amounts constrained to specific purposes by the City itself, via a
City Council ordinance. To be reported as committed, amounts cannot be used for any other
purpose unless the City changes the constraint via ordinance.
Assigned fund balance - amounts the City intends to use for a specific purpose, but do not
meet the criteria to be classified as committed. The City Council has by resolution, authorized
the city manager to assign fund balance.
Unassigned fund balance - amounts that are available for any purpose. Positive amounts are
reported only in the general fund.
Disbursements of fund balance reserves will first be made from restricted amounts when both
restricted and unrestricted fund balance is available. Additionally, the City will first use committed
fund balance, followed by assigned fund balance, and then unassigned fund balance when
expenditures are incurred for purposes which amounts in any of the unrestricted fund balance
classifications could be used.
(p) General Fund fund balance policy—The City has adopted an ordinance whereby the
minimum unassigned fund balance must be at least 20% of the current fiscal year original budgeted
expenditures. The City was in compliance with this policy at September 30,2016.
(q) Use of estimatesManagement 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.
(2) Reconciliation of Government-Wide and Fund Financial Statements:
(a) Reconciliation of the balance sheet of the governmental funds to the statement of net
position Following the governmental fund balance sheet is a reconciliation between fund balance
- total governmental funds and net position — governmental activities as reported in the
government-wide statement of net position. A detailed explanation of these differences is provided
in the above referenced financial statement.
(b) Reconciliation of the statement of revenues, expenditures, and changes in fund balances
of governmental funds to the statement of activitiesFollowing 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 30,2016
(3) Property Tax Calendar:
Under Florida law, the assessment of all properties and the collection of all county, municipal and
school district property taxes are consolidated in the offices of the County Property Appraiser and
County Tax Collector. The laws of the state regulating tax assessment are also designed to assure a
consistent property valuation method statewide. State Statutes permit municipalities to levy property
taxes at a rate of up to 10 mills.
The millage rate assessed by the City on the tax roll certified on November 1, 2015 was 3.5235
mills(3.4600 for general government and 0.0635 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 September
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 1,2015
November 4 through
December 3 March 31,2016
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 30,2016
(4) Deposits and Investments:
Deposits: All bank balance deposit amounts are covered by federal depository insurance or
collateral with the State of Florida under the Florida Security for Public Deposits Act.
The Florida Security for Public Deposits Act establishes guidelines for qualification and
participation by banks and savings associations, procedures for the administration of the collateral
requirements, and characteristics of eligible collateral. Under the Act, City deposits in qualified
public depositories are fully insured. The qualified public depository must pledge 50% of the
average daily balance for each month of all public deposits in excess of any applicable depository
insurance. Additional collateral, up to a maximum of 125% may be required if deemed necessary
under the conditions set forth in the Act. Obligations pledged to secure deposits must be delivered to
the State Treasurer, or with the approval of the State Treasurer, to a bank, savings association, or
trust company provided a power of attorney is delivered to the Treasurer.
Investments: The City's investment policies are governed by state statutes and City Ordinances. As
of September 30, 2016, 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.
The City measures and records its investments, assets whose use is limited, and restricted assets
using fair value measurement guidelines established by GASB Statement No. 72. These guidelines
recognize a three-tiered fair value hierarchy, as follows:
• Level 1: Quoted prices for identical investments in active markets;
• Level 2: Observable inputs other than quoted market prices; and,
• Level 3: Unobservable inputs.
At September 30, 2016, the City had the following deposits and investments included in equity in
pooled cash and investments:
Carrying Value
at September 30, Credit
Investment Type 2016 Maturity Rating
Cash in banks $ 2,860,301 N/A N/A
Florida Division of Treasury—Special Purpose 7,001,768 2.65 years A+f
Investment Account
Total Government-wide deposits and $ 9,862,069
investments
The Florida Division of Treasury—Special Purpose Investment Account was valued at fair value
using significant unobservable inputs(Level 3 on the fair value hierarchy).
- 61 -
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(4) Deposits and Investments: (Continued)
Interest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of investments. In accordance with the provisions of the state statutes governing allowable
investments, the City manages its exposure to declines in fair values by limiting the maturity of
specific investments to provide sufficient liquidity to pay obligations as they come due.
Credit Risk: Credit rate risk is the risk of losses due to the failure of the security issue or backer.
This is mitigated by investing in the assets allowed under 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 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, 2016, the fair value factor for the SPIA was 1.0121. 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, 2016, all investments of the City are held in the pooled
investment accounts administered by the State of Florida.
(5) Receivables:
At September 30, 2016,the City's receivables consist of the following. Receivables in the wastewater and
stormwater funds represent customer receivables but have been included in Due from Other Governments
in the statement of net position as another municipality is responsible for the billing and collection of the
receivables and ultimate payments to the City:
Allowance for
Gross Doubtful Receivables,
Receivables Accounts net
Governmental Activities:
General Fund $ 319,821 $ (2,317) $ 317,504
Total Governmental Activities 319,821 (2,317) 317,504
Business-Type Activities:
Wastewater 768,363 (7,169) 761,194
Stormwater 113,429 (1,060) 112,369
Total Business-Type Activities 881,792 (8,229) 873,563
Totals $ 1,201,613 $ (10,546) $ 1,191,067
- 62-
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(6) Interfund Loans and Transfers:
The outstanding balances between funds result mainly from the time lag between the dates reimbursable
expenditures occur, when transactions are recorded in the accounting system, and when payments
between funds are made. At September 30, 2016, individual fund interfund receivables and payables for
the primary government are comprised of the following:
Due From Due To
Other Other
Funds Funds
Wastewater Fund:
Stormwater Fund $ - $ 762,620
Stormwater Fund:
Wastewater Fund 762,620 -
Total—All Funds $ 762,620 $ 762,620
At September 30, 2016, long-term individual fund advances to and from other funds for the primary
government were for the purposes of providing advance funding for projects in the Cape Canaveral CRA
Fund and comprised of the following:
Advance Advance
To From
General Fund:
Cape Canaveral CRA Fund $ 81,722 $ -
Cape Canaveral CRA Fund:
General Fund - 81,722
Wastewater Fund - 420,785
Wastewater Fund:
Cape Canaveral CRA Fund 420,785 -
Total—All Funds $ 502,507 $ 502,507
- 63 -
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(6) Interfund Loans and Transfers: (Continued)
For the year ended September 30, 2016,the composition of interfund transfers is as follows:
Transfer Transfer
From To
Governmental Activities:
General Fund:
Fire Protection Fund $ 25,000 $ -
School Crossing Guard Fund 1,458 -
Cape Canaveral CRA Fund 1,821 -
Capital Construction Fund - 1,658,059
Wastewater Fund 797,688 -
Stormwater Fund 19,566 -
Cape Canaveral CRA Fund:
General Fund - 1,821
Wastewater Fund - 473,108
Capital Construction Fund:
General Fund 1,658,059 -
Enterprise Capital Fund:
Wastewater Fund 3,495,675 -
Stormwater Fund 979,808 -
Norunajor Governmental Funds:
Fire Protection Fund:
General Fund - 25,000
School Crossing Guard Fund:
General Fund - 1,458
6,979,075 2,159,446
Business-Type Activities:
Wastewater Fund:
General Fund - 797,688
Cape Canaveral CRA Fund 473,108 -
Enterprise Capital fund - 3,495,675
Stormwater Fund:
General Fund - 19,566
Enterprise Capital Fund - 979,808
473,108 5,292,737
$ 7,452,183 $ 7,452,183
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, (4) move unrestricted revenues to fmance 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, and (5) move CRA monies to Wastewater fund for portion of capital project in
CRA district.
During the year,the City also incurred$4,477,481 in capital outlay expenditures in the Enterprise Capital
Fund for construction in progress, equipment, and other capital improvements, of which $3,497,674 and
$979,807 was contributed to the Wastewater Fund and Stormwater Fund,respectively.
- 64-
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(7) Capital Assets:
For the fiscal year ended September 30, 2016, capital asset activity was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets,not being depreciated:
Land $ 7,248,237 $ - $ - $ 7,248,237
Construction in progress 964,267 4,211,735 - 5,176,002
Total capital assets,not being
depreciated 8,212,504 4,211,735 - 12,424,239
Capital assets,being depreciated:
Buildings and improvements 4,751,031 - (11,46) 4,749,885
Machinery and equipment 3,015,508 452,746 (50,634) 3,417,620
Infrastructure 7,061,579 140,459 (11,645) 7,190,393
Total capital assets,being depreciated 14,828,118 593,205 (63,425) 15,357,898
Accumulated depreciation for:
Buildings and improvements (1,109,668) (147,738) 2,058 (1,255,348)
Machinery and equipment (1,628,454) (190,478) 45,894 (1,773,038)
Infrastructure (1,977,591) (300,232) - (2,277,823)
Total accumulated depreciation (4,715,713) (638,448) 47,952 (5,306,209)
Total capital assets being depreciated,
net of accumulated depreciation 10,112,405 (45,243) (15,473) 10,051,689
Governmental activities capital assets,
net $ 18,324,909 $ 4,166,492 $ (15,473) $ 22,475,928
Business-type activities:
Capital assets,not being depreciated:
Land $ 351,084 $ - $ - $ 351,084
Construction in progress 3,132,555 4,246,878 (5,580,789) 1,798,644
Total capital assets,not being
depreciated 3,483,639 4,246,878 (5,580,789) 2,149,728
Capital assets,being depreciated:
Buildings and improvements 5,215,495 78,115 (2,676) 5,290,934
Machinery and equipment 1,925,611 4,297,682 (38,783) 6,184,510
Infrastructure 22,774,057 1,503,243 (5,422) 24,271,878
Total capital assets,being
depreciated 29,915,163 5,879,040 (46,881) 35,747,322
Accumulated depreciation for—
Buildings and improvements (2,082,614) (143,937) 20,883 (2,225,462)
Infrastructure (694,208) (167,789) 17,667 (824,536)
Machinery and equipment (12,678,315) (809,671) 1,029 (13,486,957)
Total accumulated depreciation (15,455,137) (1,121,397) 39,579 (16,536,955)
Total capital assets being depreciated,
net of accumulated depreciation 14,460,026 4,757,643 (7,302) 19,210,367
Business-type activities capital assets,
net $ 17,943,665 $ 9,004,521 $ (5,588,091) $ 21,360,095
- 65 -
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(7) Capital Assets: (Continued)
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $ 13,742
Public safety 259,453
Transportation 254,164
Culture and recreation 111,089
Total depreciation expense-governmental activities $ 638,448
Business-type activities:
Wastewater $ 991,275
Stormwater 130,122
Total depreciation expense-business-type activities $ 1,121,397
(8) Long-term Debt:
A.Revenue Bonds and Notes
Governmental Activities.
Capital Improvement Revenue Note,Series 2014
The $5,500,000 Capital Improvement Revenue Note, Series 2014 was issued in February 2014 to finance
various general government capital improvements and acquisitions including but not limited to a City
Hall project, Fire Station, Main Wastewater Treatment Plant Building Refurbishment, and other capital
improvements and to pay the cost of issuance related to the financing. The Series 2014 Note is secured by
an irrevocable first lien pledge and dedication of the pledged revenues which would consist of(1)public
service tax 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°/x,is payable semi-annually on February I and August 1 of
each year until final maturity on February 1, 2024. Total principal remaining to be paid on the note is
$4,480,000.
- 66-
CITY OF CAPE CANAVERAL,FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
(8) Long-term Debt: (Continued)
Business-Type Activities:
State Revolving Loan
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 one SRF loan outstanding at September 30,2016 is summarized as follows:
1.68% State Revolving Fund promissory note payable in the amount of$5,298,601;
with semiannual loan payments of $173,207 beginning June 15, 2018 through
2031; secured by the net wastewater and stormwater utility revenue of the City per
Section 4 of Ordinance 01-2013 $ 4,107,608
Less: current maturities -
Total business-type activities long-term debt $ 4,107,608
Annual debt service requirements to maturity for the City's revenue bonds and notes are as follows:
Year Ending Governmental Activities Business-Type Activities
September 30, Principal Interest Principal Interest Total
2017 $ 521,000 $ 83,968 $ - $ - $ 604,968
2018 532,000 73,941 234,374 151,675 991,990
2019 543,000 62,795 282,525 63,889 952,209
2020 554,000 51,879 287,292 59,122 952,293
2021 565,000 40,745 292,138 54,276 952,159
2022-2026 1,765,000 53,143 1,536,305 195,765 3,550,213
2027-2031 - - 1,474,974 61,913 1,536,887
Totals $ 4,480,000 $ 366,471 $ 4,107,608 $ 586,640 $ 9,540,719
- 67 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(8) Lone -term Debt: (Continued)
B. Change in Long-term Liabilities
Long-term liability activity for the year ended September 30, 2016, was as follows:
Beginning
Ending
Due Within
Balance Increases
Decreases
Balance
One Year
Governmental Activities
Series 2014 Note
$ 4,991,000 $ -
$ (511,000) $
4,480,000
$ 521,000
Compensated absences payable
215,448 135,090
(143,449)
207,089
165,671
Total Governmental Activities
$ 5,206,448 $ 135,090
$ (654,449) $
4,687,089
$ 686,671
Business -Type Activities
State revolving loans $ 2,245,786 $ 2,074,470 $ (212,648) $ 4,107,608 $ -
Compensated absences payable 94,447 54,867 (67,147) 82,167 65,733
Total Business -Type Activities $ 2,340,233 $ 2,129,337 $ (279,795) $ 4,189,775 $ 65,733
Compensated absences are typically paid from the General Fund, Wastewater Fund, and the Stormwater
Fund. With respect to governmental activities, compensated absences are primarily liquidated from the
General Fund. The liability for compensated absences 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.
(9) Employees' Retirement Plan:
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 $27,969 were used
to reduce the City's current period contribution requirement.
For the year ended September 30, 2016, employer and matching contributions to the defined contribution
plan were $79,200 and $42,938, respectively. As of September 30, 2016, the Plan had 36 participating
employees.
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(10) Other Post -Employment Benefits (OPEB):
Plan Description—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 Employees 48
Inactive Employees 11
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.
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).
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(10) Other Post -Employment Benefits (OPEB): (Continued)
The components of the annual OPEB cost for the current year, the total contributions and the changes in
the net obligation are as follows:
Normal Cost (service cost for one year)
$ 10,000
Amortization of Unfunded Actuarial Accrued Liability (UAAL)
(1,000)
Amortization of Net OPEB Obligation
6,000
Annual Required Contribution (ARC)
15,000
Interest on Net OPEB Obligation
2,000
Adjustment to ARC
(6,000)
Annual OPEB Cost (Expense)
11,000
Less: Employer Contributions Made
(3,000)
Increase in Net OPEB Obligation
8,000
Net OPEB Obligation at beginning of year
50,000
Net OPEB Obligation at end of year
$ 58,000
For the year ended September 30, 2016, 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 the past 3 years is as follows:
Year Ended
September 30,
2016
2015
2014
Annual
OPEB
Cost
City
Contributions
Percentage of Net
Annual OPEB OPEB
Cost Contributed Obligation
11,000 $ 3,000 27% $ 58,000
11,000 $ 2,000 18% $ 50,000
11,000 $ 3,000 27% $ 41,000
In the Statement of Net Position, the City reports a Net OPEB Obligation of $35,943 in governmental
activities and $22,057 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:
Fiscal Year
Valuation as
of 9/1/2015
Actuarial Accrued Liability (AAL) $ 40,000
Actuarial Value of Plan Assets N/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%
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CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(10) Other Post -Employment Benefits (OPEB): (Continued)
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.
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 Credit
UAAL Amortization:
Method
Level Dollar Payment
Open/Closed
Open
Remaining Amortization Period
10 Years
Asset Valuation
N/A
Actuarial Assumptions:
Investment Earnings
4.00%
Salary Increases
2.50%
Inflation Rate
2.75%
Healthcare Inflation Rate
10.00% Initial
5.00% Ultimate
(11) Legal Matters:
The City is engaged in routine litigation incidental to the conduct of its business and municipal affairs. In
the opinion of its Counsel, no other legal proceedings are pending against them, not covered by insurance,
which would inhibit the City's ability to perform its operations or materially affect its financial condition.
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CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(12) Commitments and Contingencies:
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state governments. Any disallowed claims, including amounts
already collected, may constitute a liability of the applicable fund(s). The amount, if any, of expenditures
from current or prior years which may be disallowed by the grantor cannot be determined at this time
although the City expects such amounts, if any, to be immaterial.
(13) Risk Management:
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; 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.
(14) Fund Deficits:
The Cape Canaveral CRA Fund deficit of $466,535 represents the cumulative costs associated with
capital improvements and excess of expenditures over revenues. This deficit is to be funded by future tax
increment revenues.
(15) Recent Accounting Pronouncements:
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. 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 74 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.
(b) 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 or 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.
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CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(15) Recent Accounting Pronouncements: (Continued)
(c) 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.
(d) GASB issued Statement No. 78, Pensions Provided through Certain Multiple -Employer
Defined Benefit Pension Plans, in December 2015. GASB 78 addresses practice issues
regarding the scope and applicability of GASB 68. The provisions in GASB 78 are effective
for periods beginning after December 15, 2015.
(e) GASB issued Statement No. 79, Certain External Investment Pools, in December 2015. GASB
79 addressing accounting and financial reporting for certain external investment pools and
pool participants by establishing criteria for an external investment pool to qualify for making
the election to measure all of its investments at amortized cost for financial reporting purposes.
The provisions in GASB 79 are effective for periods beginning after December 15, 2015.
(f) GASB issued Statement No. 80, Blending Requirements for Certain Component Units An
Amendment of GASB Statement No. 14, in January 2016, which amends the blending
requirements for the financial statement presentation of component units of all state and local
governments. GASB 80 enhances the comparability of financial statements among
governments. The provisions in GASB 80 are effective for fiscal years beginning after June
15, 2016.
(g) GASB issued Statement No. 81, Irrevocable Split -Interest Agreements, in March 2016, which
requires that a government that receives resources pursuant to an irrevocable split -interest
agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the
agreement. GASB 81 enhances comparability of financial statements by providing accounting
and financial reporting guidance for irrevocable split -interest agreements in which a
government is a beneficiary. The provisions in GASB 81 are effective for fiscal years
beginning after December 15, 2016.
(h) GASB issued Statement No. 82, Pension Issues An Amendment of GASB Statements No. 67,
No. 68, and No. 73, in March 2016. GASB 82 addresses issues regarding (1) the presentation
of payroll -related measures in required supplementary information, (2) the selection of
assumptions and the treatment of deviations from the guidance in an Actuarial Standard of
Practice for financial reporting purposes, and (3) the classification of payments made by
employers to satisfy employee (plan member) contribution requirements. The provisions in
GASB 82 are effective for periods beginning after either June 15, 2016 or June 15, 2017, if
certain assumptions are met.
-73-
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(15) Recent Accounting Pronouncements: (Continued)
(i) GASB issued Statement No. 83, Certain Asset Retirement Obligations, in November 2016.
GASB 83 addresses accounting and financial reporting for certain asset retirement obligations
(AROs), which are legally enforceable liabilities associated with the retirement of a tangible
capital asset. The provisions in GASB 83 are effective for periods beginning after June 15,
2018.
(j) GASB issued Statement No. 84, Fiduciary Activities, in January 2017. GASB 84 improves
guidance regarding the identification and reporting of fiduciary activities. The provisions in
GASB 84 are effective for periods beginning after December 15, 2018.
-74-
Required Supplementary Information
-75-
CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF FUNDING PROGRESS
AND SCHEDULE OF EMPLOYER CONTRIBUTIONS
OTHER POST -EMPLOYMENT BENEFITS
SEPTEMBER 30, 2016
Schedule of
(1) For information regarding contribution percentage rates, assumptions, amortization method, etc. see Note 1
(2) This data is reported for the three most recent actual valuations, as only three such valuations have been performer
-76-
Accrued Liability
Actuarial
(AAL)
Unfunded
UAAL as a
Actuarial
Value of
Frozen
AAL
Funded
Covered
Percentage of
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Covered Payroll
Date
(a)
(b)
(b -a)
(a / b)
(c)
((b -a) / c)
9/1/2015
$
-
$
40,000
$ 40,000
0.00%
$2,289,000
1.7%
7/1/2013
$
-
$
45,000
$ 45,000
0.00%
$2,029,000
2.2%
11/1/2011
$
-
$
46,000
$ 46,000
0.00%
$2,031,000
2.3%
10/1/2008
$
-
$
56,000
$ 56,000
0.00%
$2,087,000
2.7%
Schedule
of
Employer Contributions
Year Ended
Annual Required
Actual
Percentage
Contribution as a
September 30,
Contributions
Contributions
Contributed
Percentage of Payroll
2016
$
15,000
$
3,000
20.00%
0.13%
2015
$
14,000
$
2,000
14.29%
0.09%
2014
$
14,000
$
3,000
21.43%
0.13%
2013
$
13,000
$
3,000
23.08%
0.14%
2012
$
12,000
$
2,000
16.67%
0.10%
2011
$
11,000
$
1,000
9.09%
0.05%
(1) For information regarding contribution percentage rates, assumptions, amortization method, etc. see Note 1
(2) This data is reported for the three most recent actual valuations, as only three such valuations have been performer
-76-
Combining and Individual
Fund Statements and Schedules
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.
-79-
Assets
Equity in pooled cash and investments
Due from other governments
Total assets
Liabilities
Accounts payable and accrued liabilities
Total liabilities
Fund Balances
Restricted for:
Public safety
Culture/recreation
Committed to:
Public safety
Total fund balances
CITY OF CAPE CANAVERAL, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
Special Revenue Funds
Police Fire School Special Law
Education Protection Crossing Guard Library Enforcement Trust Total
$ 19,461 $ 7,256 $ 2,160 $ 347,580 $ 6,620 $ 383,077
92 - 97 32 - 221
$ 19,553 $ 7,256 $ 2,257 $ 347,612 $ 6,620 $ 383,298
$ $ $ $ 180 $ $ 180
$ $ $ $ 180 $ $ 180
$ 19,553 $ 7,256 $ $ - $ 6,620 $ 33,429
- - 347,432 - 347,432
- - 2,257 - - 2,257
$ 19,553 $ 7,256 $ 2,257 $ 347,432 $ 6,620 $ 383,118
-80-
CITY OF CAPE CANAVERAL, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
-81-
Special Revenue Funds
Police
Fire
School
Special Law
Education
Protection
Crossing Guard
Library
Enforcement Trust
Total
Revenues
Property taxes
$
$
$ - $
60,029
$
$ 60,029
Fines and forfeitures
1,131
-
547
-
1,678
Impact fees
-
9,711
-
12,645
22,356
Investment earnings (losses)
188
153
55
4,933
54
5,383
Miscellaneous
-
-
-
340
1,784
2,124
Total revenues
1,319
9,864
602
77,947
1,838
91,570
Expenditures
Current:
General government
-
-
-
32,297
-
32,297
Public safety
-
3,484
3,484
Capital outlay
30,084
-
30,084
Total expenditures
-
-
62,381
3,484
65,865
Excess (deficiency) of revenues
over expenditures
1,319
9,864
602
15,566
(1,646)
25,705
Other financing sources (uses)
Transfers out
-
(25,000)
(1,458)
-
(26,458)
Total other financing
sources (uses)
-
(25,000)
(1,458)
-
(26,458)
Net change in fund balances
1,319
(15,136)
(856)
15,566
(1,646)
(753)
Fund balances, beginning of year
18,234
22,392
3,113
331,866
8,266
383,871
Fund balances, end of year
$ 19,553
$ 7,256
$ 2,257 $
347,432
$ 6,620
$ 383,118
-81-
Revenues
Property taxes
Fines and forfeitures
Impact fees
Investment earnings (losses)
Miscellaneous
Total revenues
Expenditures
Current:
General government
Public safety
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
Special Revenue Funds
Police Education Fire Protection
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Variance
Variance
Budgeted Amounts
Positive
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Original
Final
Actual (Negative)
804
1,131
1,131
-
-
-
- -
-
-
-
-
9,711
9,711
9,711 -
138
189
188
(1)
396
153
153 -
942
1,320
1,319
(1)
10,107
9,864
9,864 -
-
-
-
-
396
-
- -
942
1,320
-
1,320
-
-
- -
942
1,320
-
1,320
396
-
- -
9,864 -
-
1,319
1,319
-
9,711
9,864
-
-
-
-
(25,000)
(25,000)
(25,000) -
-
-
-
-
(25,000)
(25,000)
(25,000) -
-
-
1,319
1,319
(15,289)
(15,136)
(15,136) -
18,234
18,234
18,234
-
22,392
22,392
22,392 -
$ 18,234
$ 18,234
$ 19,553
$ 1,319
$ 7,103
$ 7,256
$ 7,256 $ -
-82-
CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
Special Revenue Funds
School Crossing Guard Library
Variance Variance
Budgeted Amounts Positive Budgeted Amounts Positive
Original Final Actual (Negative) Original Final Actual (Negative)
$ - $ - $ - $ - $ 59,016 $ 60,029 $ 60,029 $ -
1,100 547 547 - - - - -
- - - - 12,245 12,645 12,645 -
59 55 55 - 4,914 4,933 4,933 -
- - - - - 340 340 -
1,159 602 602 - 76,175 77,947 77,947 -
- - - - 42,175 47,863 32,297 15,566
- - - - 34,000 30,084 30,084 -
- - - - 76,175 77,947 62,381 15,566
1,159 602 602 - - - 15,566 15,566
(1,159) (1,458) (1,458) - - - - -
(1,159) (1,458) (1,458) - - - - -
- (856) (856) - - - 15,566 15,566
3,113 3,113 3,113 - 331,866 331,866 331,866 -
$ 3,113 $ 2,257 $ 2,257 $ - $ 331,866 $ 331,866 $ 347,432 $ 15,566
-83-
CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL (Continued)
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
Revenues
Investment earnings (losses)
Miscellaneous
Total revenues
Expenditures
Current:
Public safety
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Special Revenue Funds
Special Law Enforcement Trust
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 86 $ 54 $ 54 $ -
- 1,784 1,784 -
86 1,838 1,838 -
3,570 3,484 3,484 -
3,570 3,484 3,484 -
(3,484) (1,646) (1,646) -
8,266 8,266 8,266 -
-84-
Statistical Section
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-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.
Contents
Page
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.
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-88-
City of Cape Canaveral, Florida
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
Fiscal Year
Table 1
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Governmental activities:
Net investment in capital assets
$ 17,995,928
$ 13,333,909
$ 12,919,882
$ 15,842,742
$ 16,153,413
$ 16,192,759
$ 14,305,431
$ 13,761,994
$ 13,974,197
$ 13,666,914
Restricted
1,538,482
1,691,174
1,296,710
1,162,204
1,001,741
1,243,408
3,902,039
1,658,390
1,484,290
1,311,278
Unrestricted
5,850,230
7,844,092
8,219,219
5,835,996
5,800,091
5,802,065
3,841,426
6,201,532
5,448,970
4,988,488
Total governmental activities net position
25,384,640
22,869,175
22,435,811
22,840,942
22,955,245
23,238,232
22,048,896
21,621,916
20,907,457
19,966,680
Business -type activities:
Net investment in capital assets
17,252,487
15,697,879
14,389,471
12,986,307
12,774,301
11,792,700
11,835287
11,907,091
11,794,443
10,960,351
Restricted
327,160
175,579
423,939
396,648
428,741
453,489
485,322
500,875
1,111,214
1,561,737
Unrestricted
3,154,768
2,395,488
2,840,010
3,237,865
2,951,894
3,335,775
2,806,180
2,656,369
1,743,418
2,304,895
Total governmental activities net position
20,734,415
18,268,946
17,653,420
16,620,820
16,154,936
15,581,964
15,126,789
15,064,335
14,649,075
14,826,983
Primary government:
Net investment in capital assets
35,248,415
29,031,788
27,309,353
28,829,049
28,927,714
27,985,459
26,140,718
25,669,085
25,768,640
24,627265
Restricted
1,865,642
1,866,753
1,720,649
1,333,852
1,430,482
1,696,897
4,387,361
2,159,265
2,595,504
2,873,015
Unrestricted
9,004,998
10,239,580
11,059,229
9,298,861
8,751,985
9,137,840
6,647,606
8,857,901
7,192,388
7,293,383
Total governmental activities net position
$ 46,119,055
$ 41,138,121
$ 40,089,231
$ 39,461,762
$ 39,110,181
$ 38,820,196
$ 37,175,685
$ 36,686,251
$ 35,556,532
$ 34,793,663
_89-
City of Cape Canaveral, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
Fiscal Year
Table 2
-90-
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
Expenses:
Governmental activities
General government
$ 1,610,813
$
1,506,243 $
1,196,010
$ 1,176,016
$ 1,113,604
$ 691,932
$
674,753 $
734,535
$ 667,052
$ 932,270
Public safety
4,806,887
4,533,243
4,988,955
4,786,742
4,669,217
4,616,255
4,672,287
4,847,105
4,760,309
4,365,901
Transportation
968,272
982,291
976,126
989,959
1,068,023
1,039,001
1,027,016
1,051,014
1,040,708
1,091,223
Physical environment
1,059,367
1,039,747
971,376
969,778
879,353
856,790
900,255
884,689
873,470
865,088
Culture/recreation
640,356
570,491
721,749
568,356
585,452
467,498
388,430
434,924
405,769
456,429
Unallocated depreciation
-
-
-
-
-
-
-
-
-
-
Interestonlong-tem debt
94,236
104,385
47,124
1,760
3,425
Total governmental activities expenses
9,179,931
8,736,400
8,901,340
8,490,851
8,315,649
7,671,476
7,662,741
7,952,267
7,749,068
7,714,336
Business -type activities:
Wastewater utility
2,916,035
2,873,515
2,867,552
2,946,743
3,015,636
2,934,729
2,911,651
3,013,820
3,130,038
2,988,110
Stormwater utility
537,809
526,065
463,618
427,634
336,503
279,213
231,376
200,710
179,995
149,494
Total business -Type activities expenses
3,453,844
3,399,580
3,331,170
3,374,377
3,352,139
3,213,942
3,143,027
3,214,530
3,310,033
3,137,604
Total primary -government expenses
$ 12,633,775
$
12,135,980 $
12,232,510
$ 11,865,228
$ 11,667,788
$ 10,885,418
$
10,805,768 $
11,166,797
$ 11,059,101
$ 10,851,940
Program revenue
Governmental activities:
Charges for Services:
General government
$ 49,413
$
20,552 $
22,890
$ 17,376
$ 3,757
$ 105
$
931 $
186
$ 520
$ 2,120
Public safety
471,722
614,254
509,007
528,502
368,253
324,504
287,521
278,510
264,618
506,131
Physical environment
1,058,515
1,050,377
983,463
978,586
914,873
890,489
880,494
897,117
891,088
917,434
Culture/recreation
87,210
79,947
85,832
88,413
100,305
75,880
73,725
56,219
45,677
49,039
Operating Grants and Contributions
General government
-
-
-
-
-
-
-
28,803
-
1,439
Public safety
-
-
-
-
-
-
26,359
37,656
38,129
37,631
Transportation
333,666
303,353
283,621
319,888
-
-
-
-
-
-
Culture/recreation
-
-
-
986
8,922
8,060
-
-
-
-
Capital Grants and Contributions
General government
-
-
-
2,804
211
-
-
-
-
-
Public safety
-
-
-
7,635
376
-
-
-
-
-
Transportation
2,251,683
13,886
293,678
92,420
2,800
490,255
-
-
-
-
Culture/recreation
190,672
695
463
6,500
106,000
25,300
Total governmental activities program revenues
4,442,881
2,082,369
2,178,491
2,037,305
1,399,960
1,789,293
1,269,030
1,304,991
1,346,032
1,539,094
Business -type activities:
Charges for services:
Wastewaterutility
4,099,508
3,732,961
3,569,928
3,363,595
3,601,830
3,376,100
3,191,340
3,028,493
2,782,834
2,938,088
Stormwater utility
582,331
580,543
579,494
577,141
400,035
344,596
345,961
347,171
349,243
348,145
Operating grants and contributions
Sewer utility
-
-
-
-
-
-
-
6,032
-
-
Stormwater utility
-
-
-
-
-
-
-
-
-
-
Capital grants and contributions
Sewer utility
687,079
-
-
-
-
-
-
24,662
33,184
-
Stormwaterutility
871,004
200
267,189
79,972
Total business -type activities program revenues
6,239,922
4,313,504
4,149,422
3,940,736
4,001,865
3,720,696
3,537,501
3,673,547
3,165,261
3,366,205
Total primary government program revenues
$ 10,682,803
$
6,395,873 $
6,327,913
$ 5,978,041
$ 5,401,825
$ 5,509,989
$
4,806,531 $
4,978,538
$ 4,511,293
$ 4,905,299
-90-
City of Cape Canaveral, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(Continued)
Table 2
Note: The city began reporting financial information on the accrual basis of accounting when it implemented GASB Statement No. 34 in
fiscal year 2004.
-91-
2016
2015
Fiscal Year
2014 2013
2012
2011
Fiscal Year
2010 2009
2008
2007
Net (expense) revenue
Governmental activities
$ (4,737,050)
$ (6,654,031)
$ (6,722,849)
$ (6,453,546)
$ (6,915,689)
$ (5,882,183)
$ (6,393,711)
$ (6,647,276)
$ (6,403,036)
$ (6,175,242)
Business -type activities
2,786,078
913,924
818,252
566,359
649,726
506,754
394,474
459,017
(144,772)
228,601
Total primary government net (expense) revenue
$ (1,950,972)
$ (5,740,107)
$ (5,904,597)
$ (5,887,187)
$ (6,265,963)
$ (5,375,429)
$ (5,999,237)
$ (6,188,259)
$ (6,547,808)
$ (5,946,641)
General revenues and other changes in net assets
Governmental activities:
Property taxes
$ 3,349,568
$ 3,280,632
$ 3,244,566
$ 3,225,873
$ 3,246,835
$ 3,701,683
$ 3,301,598
$ 3,988,772
$ 3,938,006
$ 4,126,664
Local option motor fuel taxes
-
-
-
319,888
343,960
270,065
286,961
275,700
250,773
256,561
Utility and franchise taxes
2,454,174
2,385,223
2,302,715
2,064,043
1,990,307
2,072,864
2,055,467
2,038,270
2,005,460
1,989,636
Unrestricted intergovernmental revenues
994,390
940,785
794,366
733,430
696,767
662,774
691,234
698,031
771,490
816,424
Investment income
77,593
80,687
65,002
118,418
177,045
189,713
243,926
202,793
216,606
414,755
Gain on disposition of capital assets
-
-
-
-
-
-
-
-
-
-
Contributions and donations
-
-
-
-
-
-
179,694
4,665
885
32,745
Miscellaneous revenues
34,642
70,668
121,673
72,479
52,788
49,420
25,019
28,504
35,593
88,565
Transfers
342,148
329,400
(210,604)
125,000
125,000
125,000
134,471
125,000
125,000
125,000
Total governmental activities
7,252,515
7,087,395
6,317,718
6,659,131
6,632,702
7,071,519
6,918,370
7,361,735
7,343,813
7,850,350
Business -type activities:
Investment income
16,769
26,314
16,903
24,525
47,254
54,761
70,127
40,326
91,864
188,485
Unrestricted intergovernmental revenues
-
-
-
-
-
-
-
40,917
-
-
Miscellaneous revenues
4,770
4,688
-
-
992
18,660
-
-
-
-
Transfers
(342,148)
(329,400)
210,604
(125,000)
(125,000)
(125,000)
(134,471)
(125,000)
(125,000)
(125,000)
Total business -type activities
(320,609)
(298,398)
227,507
(100,475)
(76,754)
(51,579)
(64,344)
(43,757)
(33,136)
63,485
Total primary government
$ 6,931,906
$ 6,788,997
$ 6,545,225
$ 6,558,656
$ 6,555,948
$ 7,019,940
$ 6,854,026
$ 7,317,978
$ 7,310,677
$ 7,913,835
Change in net position:
Government activities
$ 2,515,465
$ 433,364
$ (405,131)
$ (114,303)
$ (282,987)
$ 1,189,336
$ 524,659
$ 714,459
$ 940,777
$ 1,675,108
Business -type activities
2,465,469
615,526
1,045,759
465,884
572,972
455,175
330,130
415,260
(177,908)
292,086
Total primary government change in net position
$ 4,980,934
$ 1,048,890
$ 640,628
$ 351,581
$ 289,985
$ 1,644,511
$ 854,789
$ 1,129,719
$ 762,869
$ 1,967,194
Note: The city began reporting financial information on the accrual basis of accounting when it implemented GASB Statement No. 34 in
fiscal year 2004.
-91-
City of Cape Canaveral, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Nonspendable
Restricted
Committed
Assigned
Unassigned (deficit)
Total general fund
All other Governmental Funds:
Reserved
Unreserved, reported in:
Special revenue funds
Capital projects fund
Nonspendable
Restricted
Committed
Assigned
Unassigned (deficit)
Total all other governmental funds
Fiscal Year
2016 2015 2014 2013
Note: Implementation of GASB 54 in 2011 has changed fund balance designations.
-92-
96,734
105,275
124,668
12,394
447,214
542,083
430,314
249,194
2,479,667
4,393,882
5,024,941
2,264,838
-
-
485,543
428,837
3,981,139
3,585,562
3,026,331
3,285,868
$
7,004,754
$
8,626,802
$
9,091,797
$
6,241,131
1,091,268
1,149,091
866,396
913,010
2,257
3,113
-
-
-
1,998
-
-
(466,535)
-
(189,731)
-
$
626,990
$
1,154,202
$
676,665
$
913,010
Note: Implementation of GASB 54 in 2011 has changed fund balance designations.
-92-
Table 3
Fiscal Year
2012
2011
2010
2009
2008
2007
517,503
855,695
702,131
497,486
- -
780,229
$ -
$ -
$ 1,319,729
$ 49,172
$ 365,929
$ 351,716
-
-
5,051,617
6,306,358
5,123,269
4,757,047
11,192
376,436
227,475
47,645
$ 1,527,220
2,901,197
2,731,899
$ 1,311,278
3,035,218
2,831,584
$ 6,175,082
$ 5,987,564
$ 6,371,346
$ 6,355,530
$ 5,489,198
$ 5,108,763
$ - $ -
$ 229,488
$ 21,362
$ 19,896
$ 12,915
- -
517,503
855,695
702,131
497,486
- -
780,229
781,333
762,263
800,877
- 6,247
774,266 1,189,516
4,119 7,762
$ 778,385 $ 1,203,525
$ 1,527,220
$ 1,658,390
$ 1,484,290
$ 1,311,278
-93-
City of Cape Canaveral, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues:
Property Taxes
Local option fuel taxes
Utility and franchise taxes
Intergovernmental
Licenses and permits
Charges for services and impact fees
Fines and forfeitures
Impact fees
Investment earnings
Contributions and donations
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Physical environment
Culture/recreation
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over
(under) expenditures
Other financing sources (uses):
Proceeds from sale of assets
Capital lease
Transfers In
Transfers Out
Issuance of long term debt
Total other financing sources (uses)
Net change in fund balances
Debt Service as a Percentage of Noncapital
Expenditures
Fiscal Year
2016 2015 2014 2013
$ 3,349,568
$ 3,280,632
$ 3,244,566
$ 3,225,873
333,666
303,353
283,621
319,888
2,385,437
2,327,660
2,242,170
2,005,288
2,911,743
1,107,604
1,237,160
968,271
218,773
324,649
214,674
240,605
1,184,568
1,187,150
1,178,777
1,177,491
29,690
80,412
84,173
68,477
556,989
16,046
-
-
77,593
80,687
65,002
118,418
-
-
-
2,286
86,301
129,237
174,520
107,101
11,134,328
8,837,430
8,724,663
8,233,698
1,718,241
1,497,117
1,137,376
1,158,745
4,547,434
4,270,231
4,686,563
4,536,967
714,108
734,258
708,679
650,836
1,059,367
1,039,747
971,376
958,346
529,267
468,430
629,639
505,509
8,933,674
3,678,426
5,089,128
386,968
511,000
509,000
-
-
94,236
104,385
47,124
-
18,107,327
12,301,594
13,269,885
8,197,371
(6,972,999) (3,464,164) (4,545,222) 36,327
4,110
12,567
99,119
39,347
6,979,075
4,467,764
5,435,060
353,120
(2,159,446)
(1,003,625)
(3,874,636)
(228,120)
-
-
5,500,000
4,823,739
3,476,706
7,159,543
164,347
$ (2,149,260)
$ 12,542
$ 2,614,321
$ 200,674
6.60%
7.11%
0.58%
0.00%
-94-
Table 4
Fiscal Year
2012 2011 2010 2009 2008 2007
$ 3,246,835
$ 3,701,683
$ 3,301,598
$ 3,988,772
$ 3,938,006
$ 4,126,664
343,960
270,065
286,961
275,700
250,773
256,561
1,926,356
2,001,431
2,055,467
2,038,270
2,005,460
1,989,636
840,488
1,207,232
717,593
876,990
809,619
880,794
187,851
174,371
184,938
169,165
186,704
313,322
1,052,443
1,004,528
987,925
988,282
978,083
1,003,219
32,810
43,743
69,808
74,585
37,116
174,672
177,045
189,714
243,926
202,793
216,606
414,755
11,722
67,578
178,321
4,665
885
200,065
88,152
65,364
26,387
28,504
35,593
89,510
7,907,662
8,725,709
8,052,924
8,647,726
8,458,845
9,449,198
1,075,806
661,104
662,651
712,862
640,727
895,652
4,443,899
4,457,143
4,494,953
4,579,807
4,554,969
4,164,897
731,492
881,311
869,194
885,181
894,060
989,750
886,445
855,189
827,054
872,318
870,223
865,088
505,436
394,860
381,838
365,351
346,513
400,186
741,895
2,318,682
959,909
319,875
686,504
3,409,357
-
-
-
-
35,649
33,977
-
-
-
-
1,753
3,425
8,384,973
9,568,289
8,195,599
7,735,394
8,030,398
10,762,332
(477,311)
(842,580)
(142,675)
912,332
428,447
(1,313,134)
114,689
10,103
-
3,100
-
-
125,000
125,000
125,000
125,000
125,000
125,000
239,689
135,103
125,000
128,100
125,000
125,000
$ (237,622)
$ (707,477)
$ (17,675)
$ 1,040,432
$ 553,447
$ (1,188,134)
0.00%
0.00%
0.00%
0.00%
0.51%
0.51%
-95-
City of Cape Canaveral, Florida
Tax Revenues by Source of Governmental Funds
Last Ten Fiscal Years
Table 5
Fiscal Year Ending Local Option Gas Utility and
September 30 Property Taxes Taxes Franchise Taxes Total
2016
$ 3,349,568 $
333,666 $
2,385,437 $
6,068,671
2015
3,280,632
303,353
2,327,660
5,911,645
2014
3,244,566
283,621
2,242,170
5,770,357
2013
3,225,873
319,888
2,005,288
5,551,049
2012
3,246,835
343,960
1,926,356
5,517,151
2011
3,701,683
270,065
2,001,431
5,973,179
2010
3,301,598
286,961
2,055,467
5,644,026
2009
3,988,772
275,700
2,038,270
6,302,742
2008
3,938,006
250,773
2,005,460
6,194,239
2007
4,126,664
256,561
1,989,636
6,372,861
E7evenues by Source - Governmental Funds
FY 2015-2016
Utility and
Franchise Taxes
oil
Property Taxes
Local Option Gas
Taxes
Note: This schedule represents General Fund Revenues and Special Revenue Funds
•e
City of Cape Canaveral, Florida
Assessed Value and Actual Value of Taxable Property - Unaudited
Last Ten Fiscal Years
Table 6
Fiscal
Year
Ending
Sept. 30
P
Real Property
Personal Property
Estimated Actual Value
Exemptions Real
Property
Total Taxable Assessed
Value
Assessed Value
as a Percentage
Total Direct Tax of Actual Value
Rate
2016 $
1,210,304,710
$ 37,596,222
$ 1,247,900,932
$ 139,827,608
$ 976,475,444
3.5432
78.2%
2015
1,089,004,140
37,779,795
1,126,783,935
136,211,297
911,269,988
3.7246
80.9%
2014
997,910,830
32,828,416
1,030,739,246
134,809,299
854,722,277
3.9102
82.9%
2013
941,481,580
29,345,431
970,827,011
133,952,078
819,560,573
4.0739
84.4%
2012
946,202,570
28,849,632
975,052,202
135,604,108
822,683,104
4.0739
84.4%
2011
1,086,815,240
37,635,713
1,088,915,973
144,063,544
944,852,429
4.0739
86.8%
2010
1,297,016,050
44,355,005
1,341,371,055
256,232,810
1,114,328,062
3.0671
83.1%
2009
1,621,339,380
44,924,563
1,666,263,943
316,819,560
1,343,479,136
3.0671
80.6%
2008
1,739,019,845
42,792,900
1,781,812,745
321,863,840
1,459,073,335
2.7816
81.9%
2007
1,773,047,020
39,450,089
1,812,497,109
386,735,730
1,424,882,519
3.0000
78.6%
2,000
1,800
1,600
1,400
c 1,200
1,000
800
600
400
200
0
Actual vs
Assessed Value of Taxable Property
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
■Actual Value ■Assessed Value
Source: Brevard County Property Appraiser (Form DR -403 AM)
-97-
City of Cape Canaveral, Florida
Property Tax Rates - Direct and Overlapping Governments - Unaudited
Last Ten Fiscal Years
Table 7
9.0000
8.0000
7.0000
6.0000
5.0000
4.0000
3.0000
2.0000
1.0000
0.0000
Tax Rates for Cape Canaveral
Residents
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
■Cape Canaveral ❑Brevard County ■Brevard 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-
Mills (per $1,000 of assessed valuation)
Cape Canaveral 1
Brevard
Brevard School
Direct &
Overlapping
Fiscal Year
Library
Police
Fire
Beautification
Total
County
District
Rates
2016
0.0635
3.4797***
3.5432
5.8035
7.2750
16.6217
2015
0.0666
3.6580***
3.7246
5.4589
7.3390
16.5225
2014
0.0709
1.9187
1.4390
0.4816
3.9102
5.6254
7.6060
17.1416
2013
0.0739
2.0000
1.5000
0.5000
4.0739
6.2857
8.0960
18.4556
2012
0.0739
2.0000
1.5000
0.5000
4.0739
6.2857
8.1120
18.4716
2011
0.0739
2.0000
1.5000
0.5000
4.0739
5.6752
7.6530
17.4021
2010
0.0453
1.4166
1.2715
0.3337
3.0671
4.9714
7.6870
15.7255
2009
0.0453
1.4166
1.2715
0.3337
3.0671
5.1265
7.6610
15.8546
2008
0.0453
1.4166
0.9860
0.3337
2.7816
5.0713
7.5310
15.3839
2007
0.0500
1.5620
1.0200
0.3680
3.0000
5.4375
7.6670
16.1045
9.0000
8.0000
7.0000
6.0000
5.0000
4.0000
3.0000
2.0000
1.0000
0.0000
Tax Rates for Cape Canaveral
Residents
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
■Cape Canaveral ❑Brevard County ■Brevard 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, Florida
Principal Property Taxpayers (Major Taxpayers) - Unaudited
Current Year and Ten Years Ago
OLCC Florida, LLC (Cape Caribe)
Cocoa Beach Motel Two, Inc.
Cape Canaveral Joint Venture
Palms East of Cape Canaveral, LLC
Portview Inn & Suites, LLC
C C Hotel Cab & Investors, LLC
Oceanside Treasure, LLC
IAP World Services, Inc.
Logan Commercial Office Center, LLC
8910 Astronaut, LLC
Puerto Del Rio, LLC.
Coastal Fuels Marketing.
AIA Acquisition Group, LTD., LLC
Total Taxes Assessed
Table 8
Year Ended September 30, 2016 Year Ended September 30, 2007
Taxes Assessed to Principal Taxpayers
FY 2015 - 2016
IAP World Services, Inc.
4% 8910 Astronaut, LLC
Logan Commercial Office Center, LLC 3
Oceanside Treasure i i csuc
4%
C C Hotel Cab & Investors;
4%
Portview Inn & Suites, LLC
4%
Palms East of Cape Canaveral, LLC
5%
Cape Canaveral Joint Venture
6%
Cocoa Beach Mc
9%
Source: Brevard County Tax Collector
-99-
_CC Florida, LLC (Cape Caribe)
58%
Percent of
Percent of
Total City
Total City
Tax
Taxable
Tax
Taxable
Product/Service
Assessed
Rank
Value
Assessed
Rank
Value
Time Share Dvlpmnt
$ 185,844
1
6.36%
$ 107,481
1
2.72%
Hotel
30,153
2
1.03%
31,988
2
0.81%
N/A
18,779
3
0.64%
19,749
3
0.50%
Rental Property
15,502
4
0.53%
15,577
6
039%
Hotel
14,492
5
0.50%
16,968
5
0.43%
Hotel
13,298
7
0.46%
Condominium
13,021
6
0.45%
12,239
9
031%
Contractor
11,994
8
0.41%
12,795
8
032%
Rental Property
10,222
9
0.35%
Manufacturing
9,496
10
0.32%
13,903
7
035%
17,802
4
0.45%
$ 322,799
11.05%
$ 248,502
6.28%
Taxes Assessed to Principal Taxpayers
FY 2015 - 2016
IAP World Services, Inc.
4% 8910 Astronaut, LLC
Logan Commercial Office Center, LLC 3
Oceanside Treasure i i csuc
4%
C C Hotel Cab & Investors;
4%
Portview Inn & Suites, LLC
4%
Palms East of Cape Canaveral, LLC
5%
Cape Canaveral Joint Venture
6%
Cocoa Beach Mc
9%
Source: Brevard County Tax Collector
-99-
_CC Florida, LLC (Cape Caribe)
58%
City of Cape Canaveral, Florida
Property Tax Levies and Collections - Unaudited
Last Ten Fiscal Years
Table 9
$4,500
$4,000
$3,500
$3,000
-a
a
c $2,500
s
F■
$2,000
$1,500
$1,000
$_500
Property Tax Levies
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Brevard County Property Appraiser and Tax Collector
(1) Includes delinquent taxes, penalties and tax certificates.
-100-
Collections Within the Fiscal Year of
the Levy
Total Collections to Date
Taxes Levied for the
Percentage of
Delinquent Tax
Total Amount
Percentage of
Fiscal Year
Tax Year
Amount Collected
Levy
Collections (1)
Collected
Levy
2016
$ 3,459,846
$ 3,285,438
94.96%
$ 64,129
$ 3,349,567
97%
2015
3,393,383
3,280,632
96.68%
50,621
3,331,253
98%
2014
3,344,618
3,244,566
97.01%
65,851
3,310,417
99%
2013
3,338,808
3,175,256
95.10%
116,468
3,291,724
99%
2012
3,350,872
3,184,597
95.04%
89,352
3,273,949
98%
2011
3,848,393
3,701,217
96.18%
100,626
3,801,843
99%
2010
3,417,270
3,244,660
94.95%
53,324
3,297,984
97%
2009
4,120,587
3,903,224
94.72%
64,899
3,968,123
96%
2008
4,060,992
3,962,782
97.58%
20,806
3,983,588
98%
2007
4,278,807
4,103,161
95.89%
32,445
4,135,606
97%
$4,500
$4,000
$3,500
$3,000
-a
a
c $2,500
s
F■
$2,000
$1,500
$1,000
$_500
Property Tax Levies
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Brevard County Property Appraiser and Tax Collector
(1) Includes delinquent taxes, penalties and tax certificates.
-100-
City of Cape Canaveral, Florida Table 10
Ratios of Outstanding Debt by Type - Unaudited
Last Ten Fiscal Years
Business -
Type
Governmental Activities Activities
Revenue Capital State Total Personal Percentage Per
Fiscal Note Payable Leases Revolving Income (a) of Personal Capita
Year Loans Total Income (b)
2016
$ 4,480,000 $ - $ 4,107,608
$ 8,587,608
393,719,410
2.18%
844
2015
4,991,000 - 2,245,786
7,236,786
340,791,737
2.12%
720
2014
5,500,000 - 1,423,228
6,923,228
346,961,640
2.00%
691
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
Source:(a) Economic Development Commission of Florida's Space Coast
(b) See Economic Development Commission Community Data for
Cape Canaveral Qtr 12015
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, Florida Table 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
Net Bonded Bonded Debt to Debt Per
Fiscal Year Population (a) Assessed Value (b) Debt Assessed Value Capita
2016
10,171
976,221,712
- 0.00%
0.00
2015
10,049
911,269,988
- 0.00%
0.00
2014
10,022
854,722,277
- 0.00%
0.00
2013
9,987
819,560,573
- 0.00%
0.00
2012
9,926
822,683,104
- 0.00%
0.00
2011
10,426
944,852,429
- 0.00%
0.00
2010
10,491
1,114,169,772
- 0.00%
0.00
2009
10,499
1,342,062,936
- 0.00%
0.00
2008
10,635
1,695,471,375
- 0.00%
0.00
2007
10,526
1,737,951,290
- 0.00%
0.00
Source: (a) Homefacts.com
(b) Brevard County Property Appraiser (Form BC -403V)
-102-
City of Cape Canaveral, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2016
Table 12
City's Estimated Share of
Debt Applicable Percentage Direct and Overlapping
Governmental Unit Outstanding (1) (2) Debt
Brevard County
89,788,697 1.77% $ 1,590,728
City of Cape Canaveral Direct Debt (Governmental Activities)
Revenue Note 4,480,000
Total Direct and Overlapping Debt $ 6,070,728
(1) Source: Brevard County Comprehensive Annual Financial Report. Table 12
(2) Based on 2015 population. Cape Canaveral vs Brevard County
Source: (a) Homefacts.com
(b) Brevard County Property Appraiser (Form BC -403V)
-103-
City of Cape Canaveral, Florida
Pledged Revenue Coverage - Wastewater System - Unaudited
Last Ten Fiscal Years
Table 13
Direct Operating
Expenses
Debt Coverage Debt Service Debt Service (Excluding Operating
Fiscal Revenues Requirements Coverage Depreciation) Coverage
Year (a) (b) (c) (d) (e)
2016 $
4,099,508 $
229,370
17.87
$ 1,903,323
9.57
2015
3,732,961
649,383
5.75
1,952,830
2.74
2014
3,569,928
649,383
5.50
1,946,033
2.50
2013
3,363,595
649,383
5.18
2,040,297
2.04
2012
3,602,765
649,383
5.55
2,101,172
2.31
2011
3,376,100
641,383
5.26
2,022,564
2.11
2010
3,191,341
644,579
4.95
2,240,191
1.48
2009
2,988,288
644,727
4.63
2,322,703
1.03
2008
2,778,882
644,853
4.31
2,167,963
0.95
2007
2,937,665
649,383
4.52
2,092,434
1.30
5.00
4.00
3.00
2.00
1.00
0.00
Coverage Ratio
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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-
2007
104-
City of Cape Canaveral, Florida
Demographic Statistics - Unaudited
Last Ten Fiscal Years
Table 14
Fiscal
Year
Population
(a)
Median Age
(a)
Unemployment
Rate
(a)
Per Capita Personal
Income
(a)
Median Household
Income
(a)
School
Enrollment
(b)
2016
10,171
53.7
5.5%
$ 38,710
$ 44,768
427
2015
10,049
53.6
6.0%
33,913
41,222
369
2014
10,022
52.5
6.4%
34,620
45,577
369
2013
9,987
48.3
7.9%
35,204
43,881
368
2012
9,926
48.3
9.9%
35,268
46,060
375
2011
10,426
50.0
11.1%
30,633
40,468
362
2010
10,491
49.2
11.4%
29,920
40,009
367
2009
10,499
48.4
10.0%
24,859
46,279
365
2008
10,635
48.4
6.5%
35,164
50,261
369
2007
10,526
48.4
4.4%
31,800
46,335
324
11,000
10,500
10,000
9,500
9,000
8,500
8,000
Population
40,000
38,000
36,000
34,000
32,000
30,000
28,000
26,000
24,000
22,000
20,000
,y0 ,y0 NO NO ry0 ry0 ,y0 ry0 NO ,�O
I
Per Capita Income
Source: (a) Economic Development Commission of Florida's Space Coast - Median age unavailable for 2013.
(b) Cape View Elementary
- 105-
City of Cape Canaveral, Florida
Principal Employers - Unaudited
Current Year and Ten Years Ago
Table 15
2016 2007
Percentage of Percentage of
Number of Total County Number of Total County
Employer Employees Rank Employment Employees Rank Employment
Brevard County School District
Health First, Inc.
Harris Corporation
Brevard County Government
USAF 45th Space Wing
NASA
Northrop Grumman Corporation
Wuesthoff Medical Center
Rockwell Collins Inc.
Brevard County Sheriffs Office
Brevard Community College
Space Gateway Support
United Space Alliance
Total
8,998
1
3.68%
9,442
1
3.95%
7,800
2
3.19%
6,291
4
2.63%
5,750
3
2.35%
6,582
2
2.76%
2,360
4
0.96%
3,137
5
1.31%
2,285
5
0.93%
0.00%
2,005
6
0.82%
2,018
7
0.84%
1,915
8
0.78%
2,000
8
0.84%
1,785
7
0.73%
1,918
9
0.80%
1,605
9
0.66%
0.00%
1,280
10
0.52%
0.00%
2,300
6
0.96%
1,800
10
0.75%
6,400
3
2.68%
35,783
14.62%
41,888
17.52%
Source: Economic Development Commission of Florida's Space Coast.
Note: Figures are for Brevard County. No City figures are available.
- 106-
City of Cape Canaveral, Florida
Full -Time Equivalent City Government Employees by Function/Program - Unaudited
Last Ten Fiscal Years
Table 16
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Function/two2ram
General Government:
Executive/Administration
5.00
5.00
5.00
5.00
4.00
4.00
4.00
4.00
4.00
4.00
Finance
4.00
4.00
4.00
3.50
3.00
3.00
3.00
3.00
3.00
3.00
Building Department
6.50
6.00
6.00
5.00
5.00
5.50
4.50
5.50
5.50
5.50
Recreation
6.40
7.00
8.00
7.00
7.00
5.50
5.50
6.00
6.00
6.00
Infrastructure Maintenance Dept.
7.00
7.00
7.00
6.00
6.00
7.00
8.00
8.00
8.00
8.00
Public Safety:
Crossing Guards
1.00
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
Code Enforcement
2.00
2.00
2.00
2.00
1.00
1.50
1.50
1.50
1.50
1.50
Public Works:
Waste Water Treatment Plant
17.00
15.00
17.00
18.00
18.00
19.50
19.50
19.50
19.50
19.50
Stormwater
1.00
1.00
2.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Totals
49.90
48.50
52.50
49.00
46.50
48.50
48.50
50.00
50.00
50.00
Source: City of Cape Canaveral, Florida's Budget
Method: 1.0 for full-time employees and 0.50 for part-time and seasonal employees
Note: Police & Fire Departments are contracted out and Personnel not included in City totals
-107-
City of Cape Canaveral, Florida Table 17
Operating Indicators by Function - Unaudited
Last Ten Fiscal Years
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Function
General government
Building permits issued
1,184
1,177
935
1,080
836
749
796
736
707
782
Building inspections conducted
1,848
1,995
1,773
1,773
1,342
1,218
1,444
1,663
1,663
2,355
Police
Physical arrests
996
943
625
511
832
1,003
990
1,054
1,026
660
Parking violations
102
189
317
142
287
357
623
860
521
265
Traffic violations
2,558
561
798
852
864
1,706
2,995
1,748
1,642
2,043
Fire
Emergency responses
2,730
1,845
1,581
1,676
1,567
1,549
1,349
1,253
1,328
1,305
Fires extinguished
47
31
61
25
70
79
75
78
83
32
Inspections
1,613
1,436
1,543
1,658
1,505
1,448
830
630
98
230
Public works
Streets resurfacing (feet)
-
-
-
-
-
3,925
-
-
-
57,180
Potholes repaired
14
12
12
30
12
24
10
8
24
8
Water/Sewer
Accounts
2,752
2,837
2,723
2,718
2,705
8,491
8,452
8,481
9,200
9,213
Water main breaks
2
6
6
-
-
1
2
6
10
10
Average monthly usage
11,487
11,632
10,899
10,993
27,395
32,120
29,286
29,333
27,949
31,203
Wastewater
Average daily wastewater treatment
1,300,000
1,100,000
1,096,000
1,096,000
1,096,000
1,070,700
1,200,000
1,200,000
1,200,000
1,200,000
Source: City of Cape Canaveral and City of Cocoa, Florid,
Note: In accordance with Inter -Municipal Agreement, Water & Services provided to
City of Cape Canaveral by City of Cocoa Water Department_ Sewer is City of Cape
Canaveral revenue; Water is City of Cocoa revenue.
-108-
City of Cape Canaveral, Florida Table 18
Capital Asset Statistics by Function - Unaudited
Last Ten Fiscal Years
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Function
Police
Stations
1
1
1
1
1
1
1
1
1
1
Substations
-
-
-
-
-
Patrol units
23
22
22
22
28
28
29
31
26.5
29
Fire
Stations
1
1
1
1
1
1
1
1
1
1
Public works
Streets (lane miles)
21.8
22
16
16
16
16
16
16
16
16
Streetlights
645
645
645
645
622
622
556
556
540
540
Recreation and culture
Parks
8
8
8
8
8
8
8
8
8
8
Parks - acres
26.99
26.99
26.99
26.99
26.99
26.99
26.99
26.99
26.99
26.99
Playgrounds
4
4
4
4
4
4
4
4
3
3
Tennis courts
5
5
5
5
5
5
5
5
5
5
Baseball/softball diamonds
2
2
2
2
2
2
2
2
2
2
Soccer/football fields
1
1
1
1
1
1
1
1
1
1
City centers
1
1
1
1
1
1
1
1
1
1
Water
Water mains (miles)
48.2
48
48
48
48
48
48
48
48
48
Fire hydrants
254
214
214
214
214
214
214
214
214
214
Storage capacity (thousands of gallons)
None
None
None
None
None
None
None
None
None
None
Wastewater
Sanitary sewers (miles)
16.8
16.8
16.6
16.6
16.6
16.6
16.6
16.6
16.6
16.5
Treatment capacity (thousands of gallons)
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,200,000
Source: City of Cape Canaveral and City of Cocoa, Florida
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
located in City of Cape Canaveral.
-109-
City of Cape Canaveral, Florida
Table 19
Water/Wastewater Distribution and Consumption - Unaudited
Fiscal Year 2016
Water & Wastewater Distribution & Consumption
Number of Accounts
Total Meters Billed
Residential Meters (3/4")
Non-residential Meters
Average Monthly Usage (thousands of gallons)
Average Consumption per meter (thousands of gallons)
Average Monthly Wastewater Collection (thousands of dollars)
2,752
2,752
1,729
1,023
11,487
4.17
$314,875
Source: City of Cocoa Wastewater Consumption Analysis for FY16 & City of Cape Canaveral GL
Note: In accordance with Inter -Municipality Agreement, Water & Other Services provided to City of Cape Canaveral
billed by City of Cocoa Water Department. Wastewater is City of Cape Canaveral's revenue; Water is City of Cocoa's
revenue.
_110-
City of Cape Canaveral, Florida
Water and Wastewater Rates - Unaudited
Last Ten Fiscal Years
Water
Monthly Base Rate per 1,000
Fiscal Year Rate Gallons
Table 20
Wastewater
Monthly Base Rate per 1,000
Rate Gallons
2016
$ 15.32 $
3.28 $
19.35 $
5.64
2015
14.59
3.04
18.43
5.37
2014
14.59
3.04
17.54
5.11
2013
13.89
3.01
16.70
4.86
2012
13.23
2.89
15.82
4.60
2011
12.54
2.61
14.93
4.34
2010
11.62
2.41
14.08
4.09
2009
11.52
2.31
13.27
3.85
2008
11.52
2.31
12.51
3.63
2007
10.01
2.01
11.45
3.42
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 & Other Services provided to
City of Cape Canaveral billed by City of Cocoa Water Department. Wastewater is City of Cape
Canaveral's revenue; Water is City of Cocoa's Revenue.
City of Cape Canaveral, Florida
Construction, Property Value and Bank Deposits - Unaudited
Last Ten Fiscal Years
Fiscal
Year
Commercial
Construction (a)
# of
Units Value
2016
2
$ 280,025
2015
1
1,299,738
2014
1
557,455
2013
0
-
2012
0
-
2011
0
-
2010
0
-
2009
0
-
2008
4
3,683,089
2007
3
5,296,641
8
7
6
5
4
�C 3
2
1
0
Commercial and Residential Building Permits
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
■ Commercial ■ Residential
Data source:
(a) City of Cape Canaveral Building Department
(b) Brevard County Tax Collector
(c) Florida Bankers Association (figures are for Brevard County)
-112-
Table 21
(c)
Bank
Deposits
n/a
n/a
n/a
n/a
n/a
n/a
9,293,940
9,112,122
9,069,186
8,423,971
Residential
(b)
Construction (a)
# of
Brevard County Real and
Units
Value
Personal Property Taxable Value
5
$ 1,594,464
$ 29,684,313,125
31
466,392
27,990,267,285
-
-
25,745,155,761
4
877,749
24,626,876,502
2
401,774
24,922,195,924
2
436,946
29,089,009,692
1
253,243
33,330,608,859
7
1,594,097
38,013,415,731
11
2,315,049
40,973,507,774
25
7,191,839
39,375,931,246
Commercial and Residential Building Permits
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
■ Commercial ■ Residential
Data source:
(a) City of Cape Canaveral Building Department
(b) Brevard County Tax Collector
(c) Florida Bankers Association (figures are for Brevard County)
-112-
Table 21
(c)
Bank
Deposits
n/a
n/a
n/a
n/a
n/a
n/a
9,293,940
9,112,122
9,069,186
8,423,971
City of Cape Canaveral, Florida
Miscellaneous Statistics - Unaudited
September 30, 2015
Table 22
Date of Incorporation
May 16, 1963
Form of Government
Council - Manager
Area/Square Miles
1.9 sq. miles
Miles of Streets:
14 miles
Paved
21.8 miles
Unpaved
.2 miles
Street Lights
645
Fire Protection:
1
Number of Stations
1
Number of Firefighters (volunteer)
15
Number of Firefighters (paid)
35
Police Protection:
Number of Stations
1
Number of Police Officers
29
Recreation:
Parks - acres 26.99
Number of special use facilities 2
Number of neighborhood parks 8
Undeveloped land, dedicated for recreation use (acres) 7.88
Wastewater
Gravity Sewer mains
16.8 miles
Force mains
2.8 miles
Storm sewers
9.5 miles
Reclaim lines
14 miles
Number of reuse accounts
702
Number of accounts (wastewater)
2751
Schools:
Elementary
1
Building Permits Issued 1184
Number of City Employees (excluding police officers and firefighters) 49.9
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Single Audit and Other Reports
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CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2016
CFDA /
Federal or State Grantor/ Pass- CSFA Contract /
Through Grantor/Program Title Number Grant Number Expenditures
FEDERAL AWARDS
U.S. Federal Environmental Protection Agency
Passed through Florida Department of Environmental Protection
Nonpoint Source Implementation Grants 66.460 LP05052 $ 456,489
U.S. Department of Transportation
Passed through Florida Department of Transportation
Highway Planning and Construction 20.205 ARR91 1,427,636
Total Federal Awards $ 1,884,125
STATE FINANCIAL ASSISTANCE
State of Florida Department of Environmental Protection
Direct Programs:
Wastewater Treatment Facility Construction 37.077 WW050500 $ 2,004,361
Statewide Surface Restoration Projects 37.039 LP05052 414,515
Florida Recreation Development Assistance Program 37.017 A6088 50,000
Total State Financial Assistance $ 2,468,876
The accompanying notes to the schedule of expenditures of federal awards
and state financial assistance are an integral part of this schedule.
- 117 -
CITY OF CAPE CANAVERAL, FLORIDA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2016
(1) Basis of Presentation:
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance include
the federal award and state financial assistance activity of City of Cape Canaveral, Florida. The
information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance) and Section 215.97, Florida Statutes. Because the
Schedule presents only a selected portion of the operations of the City, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the City.
(2) Summary of Significant Accounting Policies:
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost
Principles for Non -Profit Organizations, or the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Pass-through entity identifying numbers are presented where available.
No amounts were passed through to subrecipients during the fiscal year ended September 30, 2016.
(3) De Minimis Indirect Cost Rate Election:
The City did not elect to use the 10% de minimis indirect cost rate as covered in §200.414, Indirect
(F&A) costs, of the Uniform Guidance.
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CITY OF CAPE CANAVERAL, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
A. Summary of Auditors' Results:
Financial Statements:
Type of audit report issued on the financial statements:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Noncompliance material to financial statements noted?
Federal Awards:
Internal control over major Federal programs:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for major
Federal programs:
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)?
Auditee qualified as a low-risk auditee?
Unmodified
yes X no
X yes none reported
X yes no
yes X no
yes X none reported
Unmodified
Dollar threshold used to distinguish between type A and type
B programs:
Identification of major Federal programs:
CFDA Number Program Name
20.205 Highway Planning and Construction
State Financial Assistance:
Internal control over major State projects:
Material weakness(es) identified?
Significant deficiency(ies) identified?
_119-
yes X none reported
yes X no
$750.000
yes X no
yes X none reported
Type of auditor's report issued on compliance for major
State projects:
Any audit findings disclosed that are required to be
reported for state financial assistance projects in
accordance with Chapter 10.550?
Dollar threshold used to distinguish between type A and
type B programs:
Identification of major State projects:
Unmodified
CSFA Number Project Name
37.039 Statewide Surface Water Restoration
37.077 Water Treatment Facility Construction
B. Financial Statement Findings:
2016-001 Grant -Funded Retainage Pavable
yes X none reported
$300,000
Criteria: Generally accepted accounting standards dictate that intergovernmental revenues for grant
reimbursements should be recognized in the same period as the related expenditures occur.
Condition: We noted actual expenditures in the Capital Construction Fund included $82,000 of
amounts still outstanding in retainage payable related to a grant -funded project. In reconciling these
expenditures to the related grant revenues, we noted no provision had been made to record the
revenue associated with these costs. As a result, a significant audit adjustment was required to
record the unbilled grant receivable and intergovernmental revenue related to these expenditures
Cause: The grant expenditures were not reconciled to the related revenues to ensure all related
reimbursements had been accrued, whether billed or unbilled.
Effect: Had the audit adjustment not been recorded, revenues and fund balance would have been
significantly understated.
Recommendation: We recommend all grant expenditures be reconciled to the related revenues on
no less than an annual basis to ensure all grant -related items are recorded in the proper accounting
period.
2016-002 Interfund Activity and Budeetary Compliance
Criteria: Generally accepted accounting standards establish recognition and measurement criteria
for interfund transaction, including long-term advances. Florida Statutes and the City Charter
require the City to approve an annual budget for the Cape Canaveral CRA fund and for
expenditures and transfers out to stay within the confines of the approved budget.
Condition: During the year, the City Council approved a $470,000 advance from the Wastewater
Fund to the Cape Canaveral CRA Fund (the CRA) to fund an interfund transfer from the CRA Fund
to the Wastewater Fund for the CRA's contribution toward a wastewater project in the CRA
District. However, no accounting entry was made at the time of the Resolution's approval to record
the transaction. As a result, a significant audit adjustment was required to correct the recording of
this transaction and record the interfund transfer and advance. This adjustment also resulted in the
CRA Fund's transfers out exceeding the approved budget.
-120-
Cause: The interfund transfer and advance was not recorded properly upon the approval of the
related resolution by the City Council. As a result, the necessary budget amendment was not
identified or made.
Effect: Had the audit adjustment not been recorded, ending fund balance and net position in the
CRA Fund and Wastewater Fund would have been significantly misstated, and the advance to/from
the two funds would not have been established consistent with the resolution approved by the City
Council.
Recommendation: We recommend all one-time or otherwise unusual transactions be reviewed in
detail and any uncertainties be resolved at the time of recording the initial transaction to ensure all
elements of the activity are properly identified and recorded.
C. Federal Awards Programs Findings and Questioned Costs: None
D. State Financial Assistance Projects Findings and Questioned Costs: None
E. Prior Audit Findings: None
F. Corrective Action Plan: See Management's Response to Findings as listed in the table of contents.
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J' i ames Moore
Certified Puhlic Accountants and Consultants
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND
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 Federal Program and State Project
We have audited City of Cape Canaveral, Florida's (the City) compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget Compliance Supplement, and the
Florida Department of Financial Services State Project Compliance Supplement that could have a direct
and material effect on each of the City's major federal programs and state projects for the year ended
September 30, 2016. The City's major federal programs and 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 federal program and state projects.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs
and 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 the audit requirements of Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Chapter 10.550, Rules
of the Florida Auditor General. Those standards and the Uniform Guidance 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 federal
program or 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
federal program and state project. However, our audit does not provide a legal determination of the City's
compliance.
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121
122-
121 Executive Circle 5931 NW 1st Place 2477 Tim Gamble Place, Suite 200
Daytona Beach, FL 32114-1180 Gainesville, FL 32607-2063 Tallahassee, FL 32308-4386
Telephone; 386/257-4100 Tetephone: 352/378.1331 Telephone: 8501386-6184
Fax: 3861255-3261 Fax: 352/372-3741 Fax: 8501422-2074
dab@jmco.com gnvpjmco.com tlh@jmco.com
Member ofAGN International with offlces in principal cities worldwide
Opinion on Each Major Federal Program and 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 federal programs and
state projects for the year ended September 30, 2016.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs and state projects. In planning and performing our audit, we considered the City's internal
control over compliance with the requirements that could have a direct and material effect on a major
federal program or state project to determine the auditing procedures for the purpose of expressing our
opinion on compliance and to test and report on internal control over compliance in accordance with the
Uniform Guidance and 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 internal control over compliance.
A deficiency 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 federal program or
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 federal program or 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 the
Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor General. Accordingly, this report is
not suitable for any other purpose.
Daytona Beach, Florida
February 8, 2017
-123-
+ lames Moore
certified PAJ,c Accountants and Cansult$nts
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor, City Council, and City Manager,
City of Cape Canaveral, Florida:
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate remaining fund information of
City of Cape Canaveral, Florida, (the City) as of and for the year ended September 30, 2016, and the
related notes to the financial statements, which collectively comprise the City's basic financial statements,
and have issued our report thereon dated February 8, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies, and therefore, material
weaknesses or significant deficiencies may exist that are not identified. 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. We did
identify certain deficiencies in internal control, described in the accompanying schedule of findings and
questioned costs as item 2016-001 and 2016-002, that we consider to be significant deficiencies.
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121
124-
121 Executive Circle
5931 NW 1st Place
2477 Tim Gamble Place, Suite 200
Daytona Beach, FL 32114-1190
Gainesville, FL 32607-2063
Tallahassee, FL 32308-4386
Telephone: 386/257-4140
Telephone; 352/378-1331
Telephone: 8501386-6184
Fax: 386/255-3261
Fax: 3521372-3741
Fax: 850/422-2074
dab@jmco,com
gnv@jmco.com
tlh@jmeo.com
Member ofACN International with offices in principal cities worldwide
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 one instance of noncompliance or other matters that is required to be
reported under Government Auditing Standards, and which is described in the accompanying schedule of
findings and questioned costs as item 2016-002.
We noted certain matters that we reported to the City Commission and management of the City in a
separate letter dated February 8, 2017.
City of Cape Canaveral, Florida's Response to Findings
The City's response to the findings identified in our audit is described in the accompanying
management's response as listed in the table of contents. The City's response was not subjected to the
auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on it.
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, 2017
-125-
+ fames Moore
certified PAJ,c Accountants and Cansult$nts
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, 2016, and have issued our report thereon dated February 8, 2017.
Auditors' Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements of
Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Florida Auditor General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditors' Report on Compliance for Each Major
Federal Program and State Project and Report on Internal Control over Compliance in accordance with
the Uniformed Guidance and Chapter 10.550, Rules of the Florida Auditor General; 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 Florida Auditor General. Disclosures in those reports and
schedule, which are dated February 8, 2017, should be considered in conjunction with this management
letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
audit report. Corrective actions have been taken to address findings and recommendations (2015-001 —
Administrative Access) 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 I of the basic financial statements.
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121
126-
121 Executive Circle
5931 IOW 1st Place
2477 Tim Gamble Place, Suite 200
Daytona Beach, FL 32114-1180
Gainesville, FL 32607-2063
Tallahassee, FL 32308-4386
Telephone: 3861257-4109
Telephone: 3521378-1331
Telephone: 8501386-6184
Fax: 3861255-3261
Fax: 352/372-3741
Fax: 8501422-2074
dab@ijmco.com
gnv@jmco.com
tlh9jmc0.com
Member ofAGN International with offices in principal cities worldwide
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, 2016, filed with the Florida Department of Financial
Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit
report for the fiscal year ended September 30, 2016. In connection with our audit, we determined 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 did not have
any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but which warrants the attention of
those charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, and applicable management and the City Council, and is not
intended to be and should not be used by anyone other than these specified parties.
Daytona Beach, Florida
February 8, 2017
- 127-
J' James Moore
Certified Puhllc Accountants and Consultants
INDEPENDENT ACCOUNTANTS' EXAMINATION REPORT
To the Honorable Mayor, City Council, and City Manager,
City of Cape Canaveral, Florida
We have examined the City of Cape Canaveral, Florida's (the City) compliance with Section 218.415,
Florida Statutes, Local Government Investment Policies, for the year ended September 30, 2016.
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, 2016.
Daytona Beach, Florida
February 8, 2017
r
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121
128-
121 Executive Circle
5931 IOW 1st Place
2477 Tim Gamble Place, Suite 200
Daytona Beach, FL 32114-1180
Gainesville, FL 32607-2063
Tallahassee, FL 32308-4386
Telephone: 3861257-4109
Telephone: 3521378-1331
Telephone: 8501386-6184
Fax: 3861255-3261
Fax: 352/372-3741
Fax: 8501422-2074
dab@ijmco.com
gnv@jmco.com
tlh9jmc0.com
Member ofACN International with offices in principal cities worldwide
THIS PAGE INTENTIONALLY LEFT BLANK.
-129-
City of Cape CanaveraJ
Management's responses to auditor findings are as follows:
2016-001 Grant -Funded Retainage Payable — The Financial Services Department will ensure
that when expenditures for an outstanding retainage payable related to a grant—funded project is
expensed, a corresponding entry for an unbilled receivable will be entered into the accounting
system during the same Fiscal Year which will ensure accurate reporting of revenue and fund
balance.
2016-002 Interfund Activity and Budgetary Compliance — The Financial Services Department
will ensure that any interfund transfer and advance is recorded at the time of Resolution approval
and expensed to the CRA. Resolution No. 2015-04 was approved by the City Council for a
$470,000 loan to the CRA, from the Wastewater Fund to fund a wastewater project. At that time,
a debt repayment schedule was recorded in the CRA as stated in the resolution and the $470,000
expense was recorded in the Enterprise Capital Fund. The CRA has already paid two years of a
10 year loan.
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105
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