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HomeMy WebLinkAboutcocc_cra_annual_report_fy19-20_20210329City of Cape Canaveral March 29, 2021 Brevard County Property Appraiser City of Cape Canaveral City Council Brevard County Manager RE: City of Cape Canaveral Community Redevelopment Agency (CRA) Annual Report—FY2019-2020 Ladies and Gentlemen, Please find enclosed the City of Cape Canaveral Community Redevelopment Agency Annual Financial Report for FY2019-2020. Chapter 163.387 (8), Florida Statute, requires that the City file an annual report of its financial activities with the taxing authorities each year for the preceding fiscal year. Furthermore, the City and Brevard County entered into an Interlocal Agreement, recorded in July of 2018, which establishes additional reporting obligations of the City. This report has been prepared to meet these obligations and is filed for fiscal year 2019/20 ending September 30, 2020. This report sets forth: (1) the organization and membership of the Community Redevelopment Agency, its Board members and administration, (2) an introduction to the CRA, its mission and history, (3) the CRA boundary, (4) financial reports, statement of liabilities, income/operating expenses and certain other performance information, and (5) an overview of public and private construction projects within the CRA. Should you have any questions, please contact me at (321) 868-1220. (continued on next page) THE SPCF 100 Polk Avenue — P.O. Box 326 • Cape Canaveral, FL 32920 BETWEEN' (321) 868-1220 • Fax (321) 868-1248 Visit us at www.cityofcapecanaveral.org • info@cityofcapecanaveral.org • #TheSpaceBetween FY2019/2020 CRA Annual Report March 29, 2021 Page 2 Sincerely, M David Dickey, Community Redevelopment Agency Director Attachment cc: Todd Morley, City Manager/CRA Registered Agent Anthony Garganese, City/CRA Attorney Mia Goforth, City/CRA Clerk THE SPACE 100 Polk Avenue — F.Q. Box 326 • Cape Canaveral, FL 32920 BETWEEN' (321) 868-1220 • Fax (321) 868-1248 Visit us at www.cityofcapecanaveral,org • info@cityofcapecanaveral.org • #TheSpaceBetween City of Cape Canaveral Community Redevelopment Agency (CRA) FY 19/20 Annual Report MARCH 2021 City of Cape Canaveral Community Redevelopment Agency 100 Polk Avenue Cape Canaveral FL 32920 (321) 868-1220 CITY OF CAPE CANAVERAL • 2 Table of Contents Community Redevelopment Agency Officials 3 Introduction, Mission & History 4 City of Cape Canaveral CRA Boundary Map 5 Financial Statements & Taxable Value 6 Statement of Revenues, Expenditures & Changes in Fund Balances —Budget to Actual 7 Projects Overview & Accomplishments (Current Year/FY 19-20) 8 Performance Information 12 Summary 13 Attachment 1 Annual Audit Report (FY 19-20) 3 Community Redevelopment Agency Officials City Staff Todd Morley City Manager/CRA Registered Agent/Primary Contact for the District (321) 868-1220 t.morley@cityofcapecanaveral.org Dave Dickey CRA Director (321) 868-1220 d.dickey@cityofcapecanaveral.org Governing Board Members Bob Hoog, Chairperson b.hoog@cityofcapecanaveral.org Mike Brown, Vice -Chair m.brown@cityofcapecanaveral.org Angela Raymond a.raymond@cityofcapecanaveral.org Mia Goforth CRA Clerk/Recording Secretary (321) 868-1220 m.goforth@cityofcapecanaveral.org Mickie Kellum m.kellum@cityofcapecanaveral.org Wes Morrison w.morrison@cityofcapecanaveral.org Governing Board Members (left to right): Bob Hoog; Mike Brown; Angela Raymond; Mickie Kellum; and Wes Morrison. gni t_ 4 Introduction, Mission & History Chapter 163.387 (8), Florida Statute, requires that the City file an annual report of its financial activities with the taxing authorities each year for the preceding fiscal year. Furthermore, the City and Brevard County entered into an Interlocal Agreement, recorded in July of 2018, which establishes additional reporting obligations of the City. This report has been prepared to meet these obligations and is filed for FY 19/20 ending September 30, 2020. This report sets forth: (1) the organization and membership of the Community Redevelopment Agency, its Board members and administration, (2) an introduction to the CRA, its mission and history, (3) the CRA boundary, (4) financial reports, statement of liabilities, income/operating expenses and certain other performance information, and (5) an overview of public and private construction projects within the CRA. In 2009, the City initiated the "Envision Cape Canaveral" effort, which set the stage for a series of redevelopment activities. One of these, the establishment of a City Vision Statement, ultimately led to the creation of the City's CRA. Between the years of 2007 and 2011, property valuation data, collected by the Brevard County Property Appraiser's Office, indicated an average decline of 41 percent in commercial and industrial areas and 47 percent in residential areas within the Community Redevelopment Area. Pursuant to Resolution No. 2012-10, the City CRA was established in 2012 with the signing of an Interlocal Agreement between the City and Brevard County. The CRA includes 766 acres or 56 percent of the City's land area (Figure 1). 400"— �s, 5 City of Cape Canaveral CRA Boundary Map Figure 1. City of Cape Canaveral CRA Boundary Map. 6 Financial Statements & Taxable Value CRA Valuation ($Millions) [Bar Graph] 500 450 400 350 300 250 200 150 100 50 0 230 CRA Valuation ($Millions) 266 2 234 48 Base Year 2013 2014 294 2015 2016 395 362 ■ 329 2017 2018 457 2019 2020 Figure 2. CRA Valuation ($Millions) 7 Statement of Revenues, Expenditures & Changes in Fund Balances—Budget to Actual Budgeted Amounts Variance Original Final Actual Positive (Negative) Revenues Taxes Intergovernmental 1,149,156 1,149,156 1,149,156 - Total Revenues 1,149,156 1,149,413 1,149,413 - Expenditures Current: Community Development 4,529,000 263,788 263,788 31,131 Total Expenditures 4,706,198 302,614 271,483 31,131 Excess(deficiency) of revenues over (3,557,042) 846,799 877,930 31,131 expenditures Other financing sources Transfers in 4,409,000 73,809 73,809 - Transfers out (987,527) (1,021,174) (968,850) 52,324 Total other financing sources 3,421,473 (947,365) (895,041) 52,324 Net change in fund balances (135,569) (100,566) (17,111) 83,455 Fund balances, beginning 44,132 44,132 44,132 of year Fund balances, end of year $(91,437) $(56,434) $27,021 $83,455 Source:City of Cape Canaveral Comprehensive Annual Financial Report CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY FUND FOR THE YEAR ENDED SEPTEMBER 30,2020 8 Projects Overview & Accomplishments (FY 19-20) The City of Cape Canaveral CRA is in its 9th year of operation and has 20 years remaining until it expires in FY 2039/2040. The CRA has increased in value approximately $227 million since its creation in 2012. The resulting Tax Increment Revenue allows for the continued expansion of public infrastructure and other programs that directly affects our City. The City continues to fund public improvements through available dollars including the general fund and CRA funds. Some of the notable projects —both public and private —are indicated in the following pages. 4111 9 Public Projects Overview & Accomplishments (FY 19-20) Multi -Generational Facility (MGF) • 7920 Orange Avenue This City facility, budgeted at $5 million, will be a catalyst for community health and engagement. Desired community amenities expressed include: indoor basketball/volleyball, indoor walking path, and specific areas for fitness, youth/teens, and banquet/gathering. The MGF will be utilized by all demographics and will serve as the host site for the City's Youth Center, Summer Camp, PAL and youth basketball programs. The facility will be open to the general public. This project will be publically funded with monies from: the CRA, grants, General Fund and use of SPIA moneys. This is an ongoing project, and Fiscal year costs were $980,000. Mobility & Striping Project This project addressed road striping and pavement marking symbols (turn lane arrows, pedestrian crosswalk blocks, stop bars, etc.) throughout the CRA. Project costs were $115,000. Orange & Polk Drainage This project sought to better manage excessive street flooding in this area. This stormwater improvement project included the upsizing of the stormwater pipes and installation of Type "C" inlets to improve stormwater flow along several City streets. Project costs were $249,500. Corner Improvements This project focused on the corners of Ridgewood Avenue and all Presidential Streets on the west side of the City to replace the ADA mats that were hazardous and in need of repair/replacement. Project costs were $64,000. :WSW- _ 10 W. Central Boulevard & Thurm Boulevard Streetscape This project includes rebuilding these two City streets as well as constructing improvements to the stormwater system and potable water lines. A pedway and additional sidewalks will also be constructed and solar lighting installed. Project costs were $2,870,000. Grant Programs In an effort to increase local business awareness, economic productivity, and aesthetics within the City, a Small Business Sign Assistance pilot program was launched to incentivize certain small business owners to improve business signage by replacing existing older and outdated signage that is not only more aesthetically attractive for the residents and visitors, but to increase their brand exposure and improve the chances of attracting new and repeat clientele. Sidewalk Construction This project included major sidewalk improvements to Pierce Avenue in the City. 11 Private Projects Overview & Accomplishments (FY 19-20) Oceanside Distillery 240 W. Central Avenue This ongoing project, started in 2016, and includes the redevelopment of an industrial site into the City's first micro -distillery. The distillery will be housed in a new 7,000 square foot building (valued at $431,000) that includes a tasting room, where educational tours will be provided, as well as a sales area where visitors can purchase spirits. Ingredients used in making the spirits will be locally -sourced, organic and once the distilling process is over, will be sold to local farmers for feed. This project is privately funded. Springhill Suites 655 W. Central Avenue This project includes a 150-room, Springhill Suites hotel on a 3.12-acre parcel. The development is complete, and opened in Summer 2020. It is anticipated that the project will go on the tax rolls for approximately $11 million, generating $175,000 in total annual ad valorem revenue. This project is privately funded. Dual Brand Hotel 9004 Astronaut Boulevard This project includes a 224-room, dual brand (Home2 and Hampton Inn & Suites) hotel on a 6.9-acre parcel. The building is just over 154,000 square feet, and was completed in Summer 2020. It is anticipated that the project will go on the tax rolls for approximately $18 million, generating $250,000 in total annual ad valorem revenue. This project is privately funded. TownePlace Suites 605 W. Central Avenue This project includes a 154-room TownePlace Suites hotel on a 3.32-acre parcel. The building will begin construction in early 2020 with a projected opening in early 2021. It is anticipated that the project will go on the tax rolls for approximately $11 million, generating $175,000 in total annual ad valorem revenue. This project is privately funded. 12 Performance Information The following information is provided consistent with the Interlocal Agreement recorded in July 2018, between the City and Brevard County. In addition, Attachment 1 to this report includes the CRA audit report prepared by an independent auditor which certifies that TIF revenues have been lawfully expended consistent with Florida Statutes. Total Projects* Started Completed 1* 2 Jobs Created Sector Construction Hospitality Total Temporary 150 100 250 Full-time 0 50 50 Jobs Retained n/a n/a Assessed Property Value CRA Enactment $230M Current $457M Affordable Housing 0 *TownePlace Suites 13 Summary The CRA continues to build forward momentum through the 2019-20 fiscal year as evidenced by a nine percent increase in its assessed value from the prior tax year. The CRA is a tool for the City and property owners to help improve property values, business revenues and economic growth within the City of Cape Canaveral. The CRA strives to provide comprehensive support for the community, property owners and businesses. For more information, visit the CRA's webpage at www.cityofcapecanaveral.org. You can learn about: • Attending upcoming Board meetings; • Minutes and agendas from prior meetings; • Financial information for the CRA; and • Contact information on how the CRA can help you. All CRA Board meetings are open to the public and are held on a quarterly basis —unless cancelled due to no new business —in the Council Chambers at City Hall, 100 Polk Avenue. Please check the City Calendar at www.cityofcapecanaveral.org for meeting dates. We encourage you to attend! Attachment 1 CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY FINANCIAL STATEMENTS SEPTEMBER 30, 2020 CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY TABLE OF CONTENTS SEPTEMBER 30,2020 Page Number(s) Independent Auditors' Report 1 —2 Management's Discussion and Analysis 3 - 5 Basic Financial Statements Balance Sheet/ Statement of Net Position 6 Statement of Revenues, Expenditures, and Changes in Fund Balance/Statement of Activities 7 Notes to Financial Statements 8 — 12 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual 14 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 15 - 16 Independent Auditors' Management Letter Required by Chapter 10.550,Rules of the State of Florida Office of the Auditor General 17 - 18 Independent Accountants' Examination Report 19 -ii - AA ,James Moore Certified public Accountants and Consultants INDEPENDENT AUDITORS' REPORT To the Governing Board, City of Cape Canaveral Community Redevelopment Agency: Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and each major fund of the City of Cape Canaveral Community Redevelopment Agency (the CRA), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the CRA's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements The CRA'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. 121 Executive Circle Daytona Beach, FL 32114-1 Telephone: 386-25 7-41 00 Website: www.jmco,com 133 East Indiana Avenue 180 DeLand, FL 32724-4329 Telephone: 386- 738-3300 5931 NW 1st Place Gainesville, FL 32607-2063 Telephone: 352-378-1331 2477 Tim Gamble Place, Suite 200 Tallahassee, FL 32308-4386 Telephone:850-386-6184 Email; info@jmco.com Member of AGN International with offices in principal cities worldwide -1- Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the CRA, as of September 30, 2020, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and 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 Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 5, 2021, on our consideration of the CRA'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 CRA's internal control over financial reporting and compliance. Daytona Beach, Florida February 5, 2021 4n'tl y l.tl .^ -2- MANAGEMENT'S DISCUSSION AND ANALYSIS The City of Cape Canaveral Community Redevelopment Agency's (the CRA) management's discussion and analysis (MD&A) is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the CRA's financial activity, (c) identify changes in the CRA's financial position (its ability to address the next and subsequent year challenges), (d) identify any material deviations from the financial plan (the approved budget), and (e) identify individual fund issues or concerns. Since the MD&A is designed to focus on current year activities, resulting changes, and currently known facts, it should be read in conjunction with the CRA's financial statements which follow this section. Financial Highlights • The assets of the CRA exceeded its liabilities at September 30, 2020, by $27,021 (net position). Of this amount, the entire balance was restricted for redevelopment purposes. • As of September 30, 2020, the CRA's reported ending fund balances of $27,021. Fund balance saw a change of $(17,111) when compared to the prior year. The MD&A is intended to serve as an introduction to the CRA's basic financial statements, which are comprised of three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. Overview of the Financial Statements This annual report consists of four components: 1) management's discussion and analysis (this section), 2) government -wide and fund financial statements, 3) notes to the financial statements, and 4) required supplementary information. Government -wide Financial Statements Government -wide financial statements provide readers with a broad overview of the CRA's finances in a manner similar to a private -sector business. The governmental activities of the CRA include providing access to healthcare services for the indigent. The statement of net position presents information on all of the CRA's assets and liabilities, with the difference between the two reported as net position. This statement serves a purpose similar to that of the balance sheet of a private -sector business. Over time, increases or decreases in net position may serve as one indicator of whether the financial position of the CRA is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the fiscal year. All changes in net position are reported using the modified cash basis of accounting. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. - 3 - Government-wide Financial Analysis Statement of Net Position The following is a summary of the CRA's governmental activities net position for each of the past two years: Governmental Activities 2020 2019 ASSETS Current and other assets $ 254,693 $ 351,303 Total assets $ 254,693 $ 351,303 LIABILITIES Current liabilities $ 227,672 $ 307,171 Total liabilities $ 227,672 $ 307,171 NET POSITION Restricted $ 27,021 $ 44,132 Total net position $ 27,021 $ 44,132 Statement of Activities The following is a summary of the changes in the CRA's governmental activities net position for each of the past two years: Governmental Activities 2020 2019 REVENUES Intergovernmental and grants $ 1,149,156 $ 937,598 Other revenues 257 510 Total revenues 1,149,413 938,108 EXPENSES Community Redevelopment 294,330 16,879 Capital outlay 260,300 326,487 Total expenses 554,630 343,366 Net income before transfers 594,783 594,742 Transfers from primary government 73,809 83,500 Transfers to primary government (685,703) (685,634) Change in net position (17,111) (7,392) Net position,beginning of year 44,132 51,524 Net position, end of year $ 27,021 $ 44,132 -4 - Financial Analysis of the General Fund The focus of the CRA's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the CRA's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the CRA's general fund reported an ending fund balance of $27,021, a change of $(17,111) in comparison with the prior year. At the end of the current fiscal year, the entire fund balance was restricted for community redevelopment. As the CRA is focused on reinvestment revenues into the CRA district and does not have significant annual operational costs, the CRA does not maintain specific reserve levels for operations. General Fund Budgetary Highlights Significant variations between original and final budget amounts were due to year-end budget true -up modification based on actual activity. Actual expenditures in the general fund were $31,131 less than final budget amounts. The main reason for this is due to the timing of capital project and other one-time expenditures. Budgetary comparisons between the final budget and actual results can be found on page 14 of this report. Economic Factors and Next Year's Budget There are many challenges facing local governments today. Property values have continued to increase in recent years, contributing to related growth in the revenues of the CRA. While property values for the 2020-2021 fiscal year have increased, the future outlook of property values during and after the COVID- 19 pandemic, and any potential impact they will have on the CRA's finances, are unknown. Requests for Information This report is designed to provide an overview of the CRA's finances for those with an interest in this area. Questions concerning any of the information found in this report, or requests for additional information, should be directed to the City of Cape Canaveral. - 5 - CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY BALANCE SHEET/STATEMENT OF NET POSITION SEPTEMBER 30,2020 Balance Sheet Statement of Cape Canaveral Net Position CRA Governmental Fund Adjustments Activities ASSETS Cash and cash equivalents $ 254,693 $ - $ 254,693 Total assets $ 254,693 $ - $ 254,693 LIABILITIES Accounts payable and accrued liabilities $ 6,685 $ - $ 6,685 Due to primary government 9,498 - 9,498 Advances from primary government 211,489 - 211,489 Total liabilities 227,672 - 227,672 FUND BALANCE/NET POSITION Fund Balance: Restricted for: Community redevelopment 27,021 (27,021)Net Position: Restricted for: Community redevelopment - 27,021 27,021 Total fund balance/net position 27,021 - 27,021 Total liabilities and fund balance/net position $ 254,693 $ - $ 254,693 The accompanying notes to financial statements are an integral part of this statement. -6 - CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE I STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30,2020 Statement of Revenues, Expenditures, and Changes in Fund Balance Statement of Cape Canaveral Activities CRA Governmental Fund Adjustments Activities Revenues Intergovernmental $ 1,149,156 $ - $ 1,149,156 Investment income 257 - 257 Total revenues 1,149,413 - 1,149,413 Expenditures/expenses Current: Community redevelopment 7,695 - 7,695 Capital outlay 263,788 - 263,788 Total expenditures/expenses 271,483 - 271,483 Excess (deficiency) of revenues over expenditures/operating income (loss) 877,930 - 877,930 Other financing sources (uses) Transfers in from primary government 73,809 - 73,809 Transfers out to primary government (968,850) - (968,850) Total other financing sources (uses) (895,041) - (895,041) Net change in fund balance/net position (17,111) - (17,111) Fund balance/net position,beginning of year 44,132 - 44,132 Fund balance/net position, end of year $ 27,021 $ - $ 27,021 The accompanying notes to financial statements are an integral part of this statement. -7 - CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 (1) Summary of Significant Accounting Policies: The financial statements of the City of Cape Canaveral Community Redevelopment Agency (the CRA), 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 and the CRA has adopted the GASB Codification. The following is a summary of the CRA's significant accounting policies: (a) Reporting entity —The City of Cape Canaveral Community Redevelopment Agency was created in 2016, by City Ordinance 2015-0-04 of the City of Cape Canaveral, Florida (the City), pursuant to Florida Statute 163.387, to account for the receipt and expenditure of property tax revenues from the tax increment financing district to support redevelopment in the designated community redevelopment area. Since the City is financially accountable for the activities of the CRA, its governing board is the same, and its relationship to the CRA is significant, the CRA is considered to be a blended component unit in the City's financial statements, where it is also reported as a major special revenue fund. The CRA has determined there are no component units that meet criteria for inclusion in the CRA's financial statements. (b) Government -wide and fund financial statements —The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the CRA. The CRA only has governmental activities and does not engage in any business -type activity. Direct expenses are those that are clearly identifiable with a specific function or segment. General revenues include ad valorem taxes and interest income. Fund financial statements are presented for the CRA's General Fund. The General Fund, which accounts for all financial operations of the CRA, is considered to be a major fund and is the only fund of the CRA. (c) 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. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue when all eligibility requirements imposed by the grantor 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 when 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 CRA considers property revenues to be available if they are collected within 60 days of the end of the current period. Grants, other intergovernmental revenues, charges for services, licenses 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. Expenditures generally are recorded when a liability is incurred. However, expenditures related to long-term agreements are recorded only when payment is due. (d) Budgets and budgetary accounting —The governing board of the CRA adopts an annual operating budget, which is prepared on a modified accrual basis and can be amended by the board throughout the year. At the fund level, actual expenditures cannot exceed the budgeted amounts. The accompanying budgeted financial statements for the General Fund reflect the final budget authorization amounts, including all amendments. -8- CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 (1) Summary of Significant Accounting Policies: (Continued) (e) Deposits and investments —The CRA's cash and cash equivalents include cash on hand, demand deposits and short-term 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. (f) Receivables and payables—Activity between the CRA and the City has been classified as amount due to/from the primary government on the balance sheet and statement of net position. All trade and property tax receivables are reported net of an allowance for uncollectible accounts, which is based upon management's analysis of outstanding balances and historical trends. At September 30, 2020, all of the CRA's receivables were considered fully collectible. (g) Prepaid items —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. (h) Capital assets —The CRA does not own any capital assets. Any capital outlay expenditures made by the CRA are deemed to be on behalf of the City who takes ownership of the assets along with the perpetual maintenance obligation for those assets. (i) Long-term obligations —The CRA does not have any legal indebtedness. Any use of funds for debt service, which is included in transfers to the primary government, represents payments toward long-term debt issued in the name of the City for which CRA revenues have been pledged. The CRA does not have any employees. Any employees who provide services to the CRA are employees of the primary government and do so at either no charge to the CRA, or any allocations made to the CRA represent reimbursements by the CRA to the primary government for services rendered (any items recorded to personnel expense accounts are only for ease of tracking the reimbursement amounts). As a result, there is no compensated absences, other post -employment benefits (OPEB), or pension liabilities recorded on the CRA's financial statements. (j) Fund equity —In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the CRA is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Those classifications are as follows: Nonspendable — amounts not available to be spent or not in spendable form, such as inventory and prepaid items. Restricted — amounts constrained to specific purposes by their providers (such as grantors and higher levels of government), through constitutional provisions or by enabling legislation. Committed — amounts constrained to specific purposes based on actions taken by the CRA governing board through ordinance Assigned — amounts the CRA intends to use for a specific purpose. Intent can be expressed by the CRA governing board or by an official or body which the Board delegates authority. Unassigned — amounts that are available for any purpose. -9- CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 (1) Summary of Significant Accounting Policies: (Continued) When an expenditure is incurred for purposes for which both restricted and unrestricted resources are available; the CRA considers restricted funds to have been spent first. When expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the CRA considers amounts to have been spent first out of committed funds, then assigned funds and finally, unassigned funds, as needed. (k) Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The CRA has no items that meet this reporting criteria. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The CRA has no items that meet this reporting criteria. (1) Net position flow assumption —Sometimes the CRA will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to determine amounts reported as restricted and unrestricted net position, it is the CRA's policy to consider restricted net position to have been used before unrestricted net position is applied. (m) Use of estimates —Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates assumed in preparing the financial statements. (2) Reconciliation of Government -Wide and Fund Financial Statements: (a) Explanation of certain differences between the governmental fund balance sheet and the government -wide 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. The CRA has no items reported differently between these two statements. (b) Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government -wide statement of activities — Following the governmental fund statement of revenues, expenditures, and changes in fund balances, there is a reconciliation between net changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the government -wide statement of activities. The CRA has no items reported differently between these two statements. - 10 - CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 (3) Deposits and Investments: The CRA is subject to the investment policy of the primary government and has no cash or investment held outside of the CRA's interest in the City's pooled cash and investments. Additional accounts are held for various other purposes, or to segregate cash balances for amounts which are restricted or held on behalf of others. State statutes authorize the CRA to invest excess funds in time deposits, or obligations of the principal and interest of which are unconditionally guaranteed by, the United States Government, commercial paper, corporate bonds, repurchase agreements and/or the State Board of Administration (SBA) Local Government Surplus Trust Fund Investment Pool or other investment vehicles authorized by local ordinance As of September 30, 2020, all CRA deposits were covered by private bank acquired insurance, Securities Investor Protection Corporation (SIPC) insurance, private broker/dealer acquired insurance, Federal Depository Insurance Corporation (FDIC) insurance, and/or the State of Florida collateral pool established under the Florida Security for Public Deposits Act (the Act). The Act established guidelines for qualification and participation by banks and savings associations, procedures for administration of the collateral requirements and characteristics of eligible collateral. Under the Act, the qualified depository must pledge at least 50% of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance. Additional collateral, up to 125% may be required if deemed necessary. All of the CRA's deposits are held with public depositories and as of September 30, 2020, the CRA's deposits and investments were not subject to any substantial interest rate, credit, or concentration risks. (4) Commitments and Contingencies: The CRA is engaged in various liability claims incidental to the conduct of its general government operations at September 30, 2020. The outcomes of established claims are included in these financial statements. In the opinion of the CRA and the primary government's legal counsel, no legal proceedings are pending or threatened against the CRA which are not covered by applicable insurance which would inhibit its ability to perform its operations or materially affect its financial condition. The CRA 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 is satisfactorily insured by limited risk, high deductible commercial general liability insurance. Commercial insurance policies are also obtained for other risks of loss, including employee health and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years. During the year ended September 30, 2020, local, U.S., and world governments have encouraged self - isolation to curtail the spread of the global pandemic, coronavirus disease (COVID-19), by mandating temporary work stoppage in many sectors and imposing limitations on travel and size and duration of group meetings. Most industries are experiencing disruption to business operations and the impact of reduced consumer spending and investment markets have been substantially impacted. There is unprecedented uncertainty surrounding the duration of the pandemic, its potential economic ramifications, and any government actions to mitigate them. Accordingly, while management cannot quantify the financial and other future impact to the CRA as of February 5, 2021, management believes that a material impact on the CRA's financial position and results of future operations is reasonably possible. - 11 - CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 (5) 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, as adjusted based on the impacts of GASB Statement No. 95, 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 CRA's financial statements: (a) 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, 2019. (b) GASB issued Statement No. 87, Leases, in June 2017. GASB 87 increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The provisions in GASB 87 are effective for periods beginning after June 15, 2021. - 12 - REQUIRED SUPPLEMENTARY INFORMATION - 13 - CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL-GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30,2020 Variance with Budgeted Amounts Final Budget- Positive Original Final Actual (Negative) Revenues Intergovernmental $ 1,149,156 $ 1,149,156 $ 1,149,156 $ - Investment income - 257 257 - Total revenues 1,149,156 1,149,413 1,149,413 - Expenditures Current: Community redevelopment 177,198 38,826 7,695 31,131 Capital outlay 4,529,000 263,788 263,788 - Total expenditures 4,706,198 302,614 271,483 31,131 Excess(deficiency)of revenues over expenditures (3,557,042) 846,799 877,930 31,131 Other financing sources(uses) Transfers in from primary government 4,409,000 73,809 73,809 - Transfers out to primary government (987,527) (1,021,174) (968,850) 52,324 Total other financing sources(uses) 3,421,473 (947,365) (895,041) 52,324 Net change in fund balances (135,569) (100,566) (17,111) 83,455 Fund balances,beginning of year 44,132 44,132 44,132 - Fund balances,end of year $ (91,437) $ (56,434) $ 27,021 $ 83,455 - 14- James Moore Certified Public Accountants and Consultants 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 Governing Board, City of Cape Canaveral Community Redevelopment Agency: We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the City of Cape Canaveral Community Redevelopment Agency (the CRA), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the CRA's basic financial statements and have issued our report thereon dated February 5, 2021. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the CRA's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the CRA's internal control. Accordingly, we do not express an opinion on the effectiveness of the CRA'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 CRA's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 121 Executive Circle 133 East Indiana Avenue Daytona Beach, FL 32114-1180 DeLand, FL 32724-4329 Telephone: 386-257-4100 Telephone: 386-738-3300 5931 NW 1st Place 2477 Tim Gamble Place, Suite 200 Gainesville, FL 32607-2063 Tallahassee, FL 32308-4386 Telephone: 352-378-1331 Telephone: 850-386-6184 Website: www.jmco,com I Email; info@jmco.com Member of AGN International with offices in principal cities worldwide - 15 - Compliance and Other Matters As part of obtaining reasonable assurance about whether the CRA's financial statements are free of 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 statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Daytona Beach, Florida February 5, 2021 01A-eg got 'if- -16- James Moore Certified Public Accountants and Consultants INDEPENDENT AUDITORS' MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550, RULES OF THE STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL To the Governing Board, City of Cape Canaveral Community Redevelopment Agency: Report on the Financial Statements We have audited the basic financial statements of the City of Cape Canaveral Community Redevelopment Agency (the CRA), as of and for the fiscal year ended September 30, 2020, and have issued our report thereon dated February 5, 2021. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 5, 2021, 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. No prior separate audit has been performed for the CRA, therefore there are no prior findings and recommendations. 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 CRA is disclosed in Note 1 of the basic financial statements. 121 Executive Circle 133 East Indiana Avenue Daytona Beach, FL 32114-1180 DeLand, FL 32724-4329 Telephone: 386-257-4100 Telephone: 386-738-3300 5931 NW 1st Place 2477 Tim Gamble Place, Suite 200 Gainesville, FL 32607-2063 Tallahassee, FL 32308-4386 Telephone: 352-378-1331 Telephone: 850-386-6184 Website: www.jmco,com I Email; info@jmco.com Member of AGN International with offices in principal cities worldwide - 17 - Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the CRA has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that the CRA, did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the CRA. It is management's responsibility to monitor the CRA'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. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we had no such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the CRA's governing board and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Daytona Beach, Florida February 5, 2021 - 18 - James Moore Certified Public Accountants and Consultants INDEPENDENT ACCOUNTANTS' EXAMINATION REPORT To the Governing Board, City of Cape Canaveral Community Redevelopment Agency: We have examined the City of Cape Canaveral Community Redevelopment Agency's (the CRA) compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, and Sections 163.387(6) and (7), Florida Statutes, Redevelopment Trust Fund (collectively, the "Statutes"), for the year ended September 30, 2020. Management is responsible for the CRA's compliance with those requirements. Our responsibility is to express an opinion on the CRA's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the CRA complied with the Statutes, for the year ended September 30, 2020, in all material respects. An examination involves performing procedures to obtain evidence about the CRA's compliance with those requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of risks of material noncompliance with those requirements, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. In our opinion, the City of Cape Canaveral Community Redevelopment Agency complied, in all material respects, with the Statutes for the year ended September 30, 2020. Daytona Beach, Florida February 5, 2021 121 Executive Circle Daytona Beach, FL 32114-1 Telephone: 386-25 7-41 00 Website: www.jmco,com 133 East Indiana Avenue 180 DeLand, FL 32724-4329 Telephone: 386- 738-3300 5931 NW 1st Place Gainesville, FL 32607-2063 Telephone: 352-378-1331 2477 Tim Gamble Place, Suite 200 Tallahassee, FL 32308-4386 Telephone:850-386-6184 Email; info@jmco.com Member of AGN International with offices in principal cities worldwide - 19 -