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cafr_2014_complete.pdf
COMPREHENSIVE ANNUAL FINANCIAL REPORT
City of Gainesville, Florida Fiscal Year Ended September 30, 2014
Prepared By The Budget & Finance Department
LISTING OF CITY OFFICALS
ELECTED OFFICIALS
Ed Braddy Mayor (At Large) Todd Chase Mayor-Commissioner Pro-Tem (District 2) Craig Carter Commissioner (District 3) Yvonne Hinson-Rawls Commissioner (District 1) Lauren Poe Commissioner (At Large) Helen Warren Commissioner (At Large) Randy Wells Commissioner (District 4)
APPOINTED OFFICIALS Russ Blackburn City Manager Kathy Viehe Interim General Manager for Utilities Nicolle Shalley City Attorney Kurt M. Lannon Clerk of the Commission Brent Godshalk City Auditor Gwendolyn Saffo Interim Equal Opportunity Director
BUDGET & FINANCE PROGRAM STAFF
Mark S. Benton Finance Director April Shuping Assistant Finance Director Daniel Smierciak Accounting Supervisor Alisa Tolbert Grants Fiscal Coordinator Lynn Thigpen Property Control Specialist Sandra Frankenberger Accountant II Belinda Morris Account Clerk, Sr.
INTRODUCTORY SECTION
TABLE OF CONTENTS i-v
LETTER OF TRANSMITTAL
Formal Transmittal of the Comprehensive Annual Financial Report vi-vii
Profile of the City vii-viii
Factors Affecting the City's Financial Condition viii-ix
Awards and Acknowledgements x
Certificate of Achievement xi
Organizational Chart xii
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT AUD-1
MANAGEMENT'S DISCUSSION AND ANALYSIS MDA-1
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements
Statement of Net Position 1
Statement of Activities 2
Fund Financial Statements:
Balance Sheet - Governmental Funds 3
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 4
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 5
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6
Statement of Net Position - Proprietary Funds 7-8
Reconciliation of the Statement of Net Position of Proprietary Funds to the Statement of Net Position 9
Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 10
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Net Position of Proprietary Funds to the Statement of Activities 11
TABLE OF CONTENTS
i
TABLE OF CONTENTS (continued)
Statement of Cash Flows - Proprietary Funds 12-13
Statement of Fiduciary Net Position - Fiduciary Funds 14
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 15
Notes to Financial Statements 16-80
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Revenues and Expenditures - Budget and Actual - General Fund 81
Notes to Schedule of Revenues and Expenditures - Budget and Actual - General Fund 82
Schedules of Changes in Pension Fund Net Pension Liability and Related Ratios: Employees' Pension Plan 83 Disability Pension Plan 84 Police Officers' and Firefighters' Consolidated Pension Plan 85
Schedules of Employer Contributions: Employees' Pension Plan 86 Disability Pension Plan 87 Police Officers' and Firefighters' Consolidated Pension Plan 88
Schedule of Annual Money-Weighted Rate or Return - All Pension Funds 89
Schedule of Funding Progress: Other Post-Employment Benefits (OPEB) Plan 90
SUPPLEMENTARY INFORMATION:
Combining Balance Sheet - Nonmajor Governmental Funds 91-104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 105-115
Schedule of Revenues and Expenditures - Budget and Actual -
Community Development Block Grant Fund 116
Urban Development Action Grant Fund 117
Home Grant Fund 118
Cultural and Nature Projects Fund 119
State Law Enforcement Contraband Forfeiture Fund 120
Federal Law Enforcement Contraband Forfeiture Fund 121
Police Billable Overtime Fund 122 ii
TABLE OF CONTENTS (continued)
Community Redevelopment Agency Fund 123
Economic Development Fund 124
Evergreen Cemetery Trust Fund 125
School Crossing Guard Trust Fund 126
Art in Public Places Trust Fund 127
FFGFC Fund - Series 2005 128
FFGFC Fund - Series 2007 129
Guaranteed Entitlement Revenue and Refunding Bonds Fund - 2004 130
Pension Obligation Bond Series 2003A 131
Pension Obligation Bond Series 2003B 132
Other Post-Employment (OPEB) Bonds 2005 133
Capital Improvement Revenue Bond (CIRB) - Series 2005 134
GPD Energy Conservation Master Lease Fund 135
Capital Improvement Revenue Note (CIRN) - Series 2009 136
Capital Improvement Revenue Bond (CIRB) - Series 2010 137
Revenue Refunding Note Series 2011 138
Capital Improvement Revenue Note Series 2011A 139
Revenue Refunding Note Series 2014 140
Combining Statement of Net Position - Nonmajor Enterprise Funds 141-142
Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Nonmajor Enterprise Funds 143-144
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 145-148
Combining Statement of Net Position - Internal Service Funds 149
Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds 150
Combining Statement of Cash Flows - Internal Service Funds 151-152
Combining Statement of Fiduciary Net Position - Pension and OPEB Trust Funds 153
Combining Statement of Changes in Fiduciary Net Position - Pension and OPEB Trust Funds 154
iii
TABLE OF CONTENTS (continued)
STATISTICAL SECTION
STATISTICAL SECTION SUMMARY 155
FINANCIAL TREND INFORMATION
Net Position by Component 156
Changes in Net Position 157-158
Fund Balances of Governmental Funds 159
Changes in Fund Balances of Governmental Funds 160
REVENUE CAPACITY INFORMATION
Assessed Value of Taxable Property 161
Property Tax Rates - Direct and Overlapping Governments 162
Principal Property Taxpayers 163
Property Tax Levies and Collections 164
Utility Base - Number of Customers and Sales Quantities 165
Utility Rates 166-169
Principal Utility Revenue Contributors 170
DEBT CAPACITY INFORMATION
Ratios of Outstanding Debt by Type 171
Direct and Overlapping Governmental Activities Debt 172
Pledged Revenue Coverage 173
DEMOGRAPHIC AND ECONOMIC INFORMATION
Demographic and Economic Statistics 174
Principal Employers 175
OPERATING INFORMATION
Full-time Equivalent City Governmental Employees by Function/Program 176
Operating Indicators by Functional Department 177-178
Capital Asset Statistics by Functional Department 179
iv
TABLE OF CONTENTS (concluded)
SINGLE AUDIT SECTION
Management Letter - Required by Section 10.557, Rules of the Auditor General 180-181
Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes 182
Independent Auditor's 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 183-184
Schedule of Expenditures of Federal Awards and State Financial Assistance 185-187
Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance 188
Independent Auditor's Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control Over Compliance Required by OMB Circular A-133 and Chapter 10.550 Rules of the Auditor General 189-191
Schedule of Findings and Questioned Costs 192
Schedule of Prior Year Findings and Schedule of Current Year Findings and Corrective Action Plan 193
Independent Certified Public Accountants Report on Internal Control over Financial Reporting and on Compliance and Other Matters for Gainesville Regional Utilities 194-195
v
CITY OF ,/
GAINE )\!ILLE very pa ~i ~ s "'ith passion
FLO!tlOA
March 25, 2015
Honorable Mayor, Members of the City Commission and Citizens of the City of Gainesville, F lorida
Dear Mayor, Commissioners, and Citizens:
Formal Transmittal of the Comprehensive Annual Financial Report
Office of the City Manager PO Box 490, Station 6 Gainesville, FL 32627
(352) 334-5010 (352) 334-3119 (fax)
www.cityofgainesvil le.org
It is our pleasure to submit this Comprehensive Annual Financial Report for the City of Gainesville, Florida for the fiscal year ended September 30, 2014. The report fulfills the requirements set forth in the City Code of Ordinances, Section 2-433; Florida Statutes, Chapter 166.241; and the Rules of the Florida Auditor General, Chapter 10.550. The organization, fonn and contents of this report plus the accompanying financial statements and statistical tables are formulated in accordance with the principles prescribed by the Governmental Accounting Standards Board, the American Institute of Certified Public Accountants, the State of Florida, the City Code of Ordinances, and the Government Finance Officers Association.
This report consists of management's representations concerning the finances of the City of Gainesville. Consequently, management assumes full responsibility for the completeness and reliability of all the infonnation presented in this report. To provide a reasonable basis for making these representations, management of the City has established 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 infonnation 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 their 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 financial report is complete and reliable in all material respects.
Florida Statutes and the City Code of Ordinances require that an annual financial audit be performed by independent certified public accountants. This year the audit was performed jointly by Carr, Riggs & Ingram and Purvis Gray & Company. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2014, 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 unmodified opinion that the City's financial statements for the fiscal year ended September 30, 2014 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report.
vi
OUR VISION: The City of Gainesvt11e will set the standard of excellence for a top ten mid-sized American city; recognized nationally as an innovative provider of high-quality, cost-effective services.
vii
The independent audit of the financial statements of the City was part of a broader, federally and state mandated “Single Audit” designed to meet the special needs of federal and state grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal and state awards. GAAP require 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 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 City The City of Gainesville is the most populous city in, and serves as the county seat of, Alachua County. The City also serves as the cultural, educational and commercial center for the North Central Florida region. Gainesville is located midway between the Gulf of Mexico and the Atlantic Ocean and halfway between Miami and Pensacola. There are approximately 60 square miles of land included within the corporate boundaries of the City. As of April 1, 2014, the official population estimate was 125,661. The City was established in 1854, incorporated in 1869 and has operated under a Commission-Manager form of government since 1927. The City Commission consists of seven elected officials (the Mayor and six Commissioners) who are responsible for enacting the ordinances and resolutions which govern the City. In March of 1998, City voters elected a Mayor for the first time in more than 70 years. The elected Mayor serves a three-year term and presides over public meetings and ceremonial events. The Commission appoints the City Manager, General Manager for Utilities, City Auditor, City Attorney, Clerk of the Commission and Equal Opportunity Director. As chief executive officers, the City Manager and General Manager for Utilities are charged with the enforcement of all ordinances and resolutions passed by the Commission. They accomplish this task through the selection and supervision of two Assistant City Managers, an Administrative Services Director, Assistant General Managers for Utilities, and numerous department heads. The City of Gainesville provides its constituents with a wide variety of public services as listed below: building inspections codes enforcement community development cultural affairs economic development electrical power golf course mass transit natural gas distribution parks and recreation police and fire protection refuse collection small business development stormwater management street maintenance, traffic engineering and parking water and wastewater telecommunications and data transfer
viii
Internal support services include the following: accounting and reporting accounts payable and payroll billing & collections budgeting and budget monitoring cash management City-wide management computer systems support debt management equal opportunity fleet maintenance facilities maintenance human resources information systems investment management labor relations mail services pension administration property control purchasing risk management strategic planning All moneys required to support the above-stated services are reflected in this report. This report includes all funds that are controlled by or are dependent on the City Commission. In addition to these activities, the City exercises oversight responsibility for the Community Redevelopment Agency and the Gainesville Enterprise Zone Development Agency. Accordingly, these activities are included in the reporting entity and are reflected in this report. Note 1(A) in the Notes to the Financial Statements lists the specific criteria used for establishing oversight responsibility. The City also maintains budgetary controls. The objective of these is to ensure compliance with legal provisions contained in the annual appropriated budget approved by the City Commission. Annual budgets are legally adopted for activities of the general fund, certain special revenue funds and debt service funds. Capital projects funds and certain special revenue funds (such as multi-year grant funds and tax increment funds) are appropriated on a project basis. Budgets are controlled at the departmental level and total expenditures may not legally exceed appropriations for each budgeted fund without Commission approval. Encumbrance accounting is utilized in governmental funds and encumbrances are reappropriated as part of the following year’s budget. Factors Affecting the City’s Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local economy. The economic landscape in Gainesville continues to be dominated by the government sector. Statistics compiled by the Bureau of Economic and Business Research at the University of Florida indicate that one of every three jobs in Gainesville is provided by the federal, state or local government. This reliance on jobs from other than the private sector tends to modify Gainesville’s reaction to external economic stimuli, such that the local economy grows less rapidly than others during boom periods but also suffers less during economic declines.
ix
The City’s unemployment rate is 4.9%, which is significantly lower than the state and national averages and is a decrease from 5.3% at the same time last year. Enrollment at the University of Florida, the engine for the area’s economy, has remained steady with a 2014 fall enrollment of 49,555 students. The General Fund’s main revenue sources include Property Tax, Utility Tax, State Revenue Sharing & Half-Cent Sales Tax, Fire Assessment and the transfer from the Utility. The Florida legislature and electorate have passed two initiatives which have resulted in reduced property tax revenues. This has been exacerbated by the recession which has caused the decline or stagnation of the other major revenue sources. The City has responded to this trend by diversifying the revenue base by adding a Fire Assessment Fee and with significant cuts in expenditure budgets during the five year period spanning fiscal years 2007 through 2011. While revenues are beginning to trend upwards, the transfer from the Utility to the General Fund has been renegotiated with a notable decrease in amount starting in fiscal year 2015. A significant expenditure facing the City is long-term pension costs. During fiscal years 2012 and 2013, the City successfully negotiated modifications to its General and Consolidated Pension Plans which reduced the trajectory of the increases in the projected contributions for the City and Utility. Long-term financial planning. Both General Government and the City-owned Utility develop multi-year financial forecasts, including capital improvement plans. Some of the key projects in these capital improvement plans are:
Remediation of the Depot Park Downtown Stormwater Basin and construction of a recreational amenity.
Renovation and relocation of an existing fire station (#1). Fleet Maintenance Facility for the Regional Transit System (RTS). Implementation of recurring annual funding for three new areas:
o Equipment replacement internal service fund o Facilities maintenance internal service fund o Road resurfacing funds
The Utility currently forecasts the need for a new electric supply by about 2022. Details on this project can be found in the accompanying Management’s Discussion and Analysis on page MDA- 10.
Financial policies. The City has adopted and complied with the following financial policies:
General Fund Reserve Policy – The unassigned fund balance of the General Fund will be at least 10% of the proposed General Fund revenue budget.
General Insurance Fund Reserve Policy – The General Insurance Fund will maintain fiscal year-end current assets equal to current liabilities.
Budget Administration Policy – Systematic procedures that are used in the development, review, adoption, monitoring, and revision of the budget.
Debt Management Policy – Outlines allowable debt issuance purposes, debt structure, limitations on debt levels, allowable types of debt, promotes sound financial management and enhances the City’s credit rating.
Capital Improvement Planning Policy – Requires a fully funded five-year Capital Improvement Plan and Capital Budget.
Awards and Acknowledgements
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 Gainesville for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2013. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents confonn to program standards. Such a CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Gainesville has received a Certificate of Achievement since 19 51. We believe our current report continues to conform to the Certificate of Achievement program requirements and are submitting it to GFOA.
Additionally, the City received the Government Finance Officers Association 's Award for Distinguished Budget Presentation for its biennial budget for the period started October 1, 2012. The City of Gainesville has received this award consecutively since the fiscal year beginning October 1, 1984. In order to qualify for the Distinguished Budget Presentation Award, the City's budget document was judged to be proficient in several categories including policy documentation, financial planning and organization.
The City was one of the first to receive recognition by the Government Finance Officers Association for its 1990 Popular (Citizen' s) Report. Jn addition, the City has received the Award for Outstanding Achievement in Popular Annual Reporting from the Government Finance Officers Association since 1992.
This report represents countless hours of preparation. Many individuals are responsible for its completion. The utmost appreciation is extended to the many City employees throughout the organization who maintain the frnancial records upon which this report is based. Special recognition is given to the employees of the Budget and Finance Department who worked diligently to ensure the timeliness and accuracy of the report.
Resp ectfully submitted,
Russ Blackburn City Manager
Mark S. Benton Finance Director
ecky ntree, CPA Administrative Services Director
x
. rl,
Government Finance Officers Association
Certificate of Achievement
for Excellence in Financial Reporting
Presented to
City of Gainesville
Florida
For its Comprehensive Annual Financial Report
for the Fiscal Year Ended
September 30, 2013
Executive Director/CEO
1t .
Assistant City Manager
Police
Fire Rescue
Parks Recreation & Cultural Affairs
Public Works
Regional Transit System
Budget and Finance
Risk Management
Communications Office
Neighborhood Improvement
Community Redevelopment Agency
General Services
Human Resources Administrative Services
Planning & Development Services
Economic Development & Innovation
Assistant City Manager
City Commission
Citizens of City of Gainesville
Equal Opportunity City Attorney City Auditor City Manager General Manager for Utilities
Clerk of the Commission
City Of Gainesville 2014 Organization Chart
xii
CITY OF
GAIN __ every path starts with passion
FLORIDA
AUD-1
INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Commissioners City of Gainesville, 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 discretely presented component unit and remaining fund information of the City of Gainesville, Florida (the “City”), as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Utility Fund, which is both a major fund and 96 percent, 83 percent, and 86 percent, respectively, of the assets, net position, and revenues of the business-type activities. Those statements were audited by other auditors whose report has been furnished to us, and our opinions, insofar as they relate to the amounts included for the Utility Fund and the business-type activities, are based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
AUD-2
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, based on our audit and the report of other auditors, 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 discretely presented component unit and remaining fund information of the City, as of September 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note 15 to the financial statements, the City implemented the provisions of GASB Statement 65, Items Previously Reported as Assets and Liabilities. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedules listed in the table of contents as “required supplementary information” 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 and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and individual nonmajor
AUD-3
fund financial statements and schedules 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 by us and the other auditors in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2015, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. That report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. 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.
Gainesville, Florida March 25, 2015
MDA - 1
MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Gainesville (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2014. Management’s Discussion and Analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City’s financial activity, (c) identify changes in the City’s financial position, (d) identify any material deviations from the financial plan, and (e) identify individual fund issues or concerns. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages vi - xii of this report, and the City’s financial statements which begin on page 1. Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $805,907,734 (net position). Of this amount, $151,440,163 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors.
The City’s total net position increased by $33,559,569 as a result of fiscal year 2014 operations. As of the close of the fiscal year, the City’s governmental funds reported combined ending fund
balances of $73,621,850, a decrease of $10,839,520 in comparison with the prior year. Of the total ending fund balances, $24,886,410 is available for spending at the City’s discretion (committed, assigned and unassigned fund balances).
At the end of the current fiscal year, the unassigned fund balance in the General Fund was $14,520,395.
The City’s total bonded debt decreased by $37.5 million (3.4%) during the current fiscal year. The components of this change are discussed in detail in the bonded debt section below.
Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City’s basic 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 & deferred outflows of resources and liabilities & deferred inflows of resources, with the net amount 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 has changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (such as uncollected taxes and earned but unused sick 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, physical environment, transportation, economic environment, human services and culture and recreation. The business-type activities include electric generation, transmission and distribution, natural gas, water and wastewater, telecommunications, refuse collection, stormwater management, golf course, building code enforcement, and mass transit.
MDA - 2
The government-wide financial statements include not only the City itself, but also a legally separate enterprise zone development agency (discretely reported component unit), and a legally separate redevelopment agency (blended component unit) for which the City is financially accountable. Financial information for the discretely reported component unit is reported separately from the financial information presented for the primary government itself. The blended component unit is reported in five non-major special revenue funds of the primary government and is included in the Governmental Activities section of the government-wide financial statements. The government-wide financial statements can be found on pages 1-2 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of 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 government’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 sixty-five 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, which is considered to be a major fund. Data from the other sixty-four governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 3-6 of this report. Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City maintains six enterprise funds to account for the following operations: utilities (including electric power generation, transmission and distribution, natural gas distribution, water and wastewater treatment and telecommunications), refuse collection, golf course, stormwater management, building code enforcement, and mass transit. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City maintains three internal service funds to account for fleet management operations, general insurance, and employee health insurance programs. Because these services benefit governmental more than business-type functions, they have been included within governmental activities in the government-wide financial statements, however in the government-wide financial statements, a certain portion of the net income of the internal service funds each year is reported in the business-type activities. This amount is allocated based on percentage of service charges. 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 utility fund, which is considered to be a major fund of the City. Data from the other five proprietary funds are combined into a single, aggregated presentation. The three internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the nonmajor enterprise funds as well as for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 7-13 of this report.
MDA - 3
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 14-15 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 16-80 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s compliance with its General Fund budget and the City’s progress in funding its obligation to provide pension and other post- employment benefits to its employees. Required supplementary information can be found on pages 81-90 of this report. The combining statements referred to earlier in connection with nonmajor governmental and proprietary funds, and internal service funds are presented immediately following the required supplementary information. Combining and individual fund statements can be found on pages 91-154 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, net position was $805,907,734 at the close of the most recent fiscal year.
FY14 FY13 FY14 FY13 FY14 FY13
Current and other assets 162,009,141$ 178,667,347$ 392,914,911$ 405,613,436$ 554,924,052$ 584,280,783$
Capital assets 203,888,299 189,426,396 2,289,626,580 1,272,228,344 2,493,514,879 1,461,654,740
Total assets 365,897,440 368,093,743 2,682,541,491 1,677,841,780 3,048,438,931 2,045,935,523
Deferred outflows 1,307,321 - 79,514,805 39,943,039 80,822,126 39,943,039
Long-term liabilities 128,850,603 140,585,173 1,961,353,439 958,794,110 2,090,204,042 1,099,379,283
Other liabilities 14,882,623 15,546,126 153,592,453 194,486,529 168,475,076 210,032,655
Total liabilities 143,733,226 156,131,299 2,114,945,892 1,153,280,639 2,258,679,118 1,309,411,938
Deferred inflows 556,946 - 64,117,259 28,380 64,674,205 28,380
Net position:
Net investment in
capital assets 163,117,931 147,982,728 387,916,136 362,258,572 551,034,067 510,241,300
Restricted 42,462,127 52,874,367 60,971,377 88,409,575 103,433,504 141,283,942
Unrestricted 17,334,531 11,105,349 134,105,632 113,807,653 151,440,163 124,913,002
Total net position 222,914,589$ 211,962,444$ 582,993,145$ 564,475,800$ 805,907,734$ 776,438,244$
City of Gainesville's Net Position
Governmental Activities Business-type Activities Total
Approximately 68% of the City’s net position reflects its investment in capital assets (e.g., land, utility plant and equipment, buildings, improvements, machinery and equipment, and infrastructure), 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. An additional portion of the City’s net position -- $103,433,504 or 13% -- represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position -- $151,440,163) -- may be used to meet the government’s ongoing obligations to citizens and creditors.
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The City’s net position increased by $33,559,569 during the current fiscal year. This increase is explained further in the following sections.
Governmental Business-type
activities activities Total
FY14 FY13 FY14 FY13 FY14 FY13
Revenues:
Program revenues:
Charges for services 25,486,842$ 23,426,078$ 403,232,349$ 359,237,645$ 428,719,191$ 382,663,723$
Operating grants and contrib. 7,036,634 8,170,095 25,213,077 14,074,581 32,249,711 22,244,676
Capital grants and contrib. 5,061,574 7,570,791 5,658,720 3,004,490 10,720,294 10,575,281
General revenues:
Property taxes 26,476,044 26,077,888 - - 26,476,044 26,077,888
Other taxes 21,516,536 21,899,384 - - 21,516,536 21,899,384
State revenue sharing 3,945,358 3,723,420 - - 3,945,358 3,723,420
Investment gain (loss) 6,061,874 (4,908,204) 6,871,499 6,653,021 12,933,373 1,744,817
Other revenues 3,495,904 2,826,862 39,459,939 25,066,581 42,955,843 27,893,443
Total revenues 99,080,766 88,786,314 480,435,584 408,036,318 579,516,350 496,822,632
Expenses:
General government 16,176,189 17,814,078 - - 16,176,189 17,814,078
Public safety 64,021,054 62,938,271 - - 64,021,054 62,938,271
Physical environment 2,871,836 3,799,039 - - 2,871,836 3,799,039
Transportation 15,142,893 18,410,169 - - 15,142,893 18,410,169
Economic environment 8,602,592 6,809,885 - - 8,602,592 6,809,885
Human services 2,216,579 384,825 - - 2,216,579 384,825
Culture & recreation 9,332,876 9,551,902 - - 9,332,876 9,551,902
Interest on long-term debt 6,711,350 7,248,291 - - 6,711,350 7,248,291
Electric - - 291,110,843 227,350,282 291,110,843 227,350,282
Gas - - 22,764,377 21,436,501 22,764,377 21,436,501
Water - - 25,516,070 24,988,038 25,516,070 24,988,038
Wastewater - - 27,740,855 27,618,138 27,740,855 27,618,138
GRUCom - - 11,761,638 10,504,492 11,761,638 10,504,492
Regional transit system - - 24,279,240 23,167,649 24,279,240 23,167,649
Stormwater management - - 6,351,290 6,283,365 6,351,290 6,283,365
Ironwood golf course - - 1,456,632 1,401,017 1,456,632 1,401,017
Florida building code enf. - - 2,306,430 2,042,119 2,306,430 2,042,119
Solid waste - - 7,594,037 7,237,205 7,594,037 7,237,205
Total expenses 125,075,369 126,956,460 420,881,412 352,028,806 545,956,781 478,985,266
Change in net position before
transfers and extraordinary item (25,994,603) (38,170,146) 59,554,172 56,007,512 33,559,569 17,837,366
Extraordinary item - - - (17,891,152) - (17,891,152)
Transfers 38,565,854 36,899,236 (38,565,854) (36,899,236) - -
Change in net position 12,571,251 (1,270,910) 20,988,318 1,217,124 33,559,569 (53,786)
Net position - October 1 211,962,444 213,233,354 564,475,800 563,258,676 776,438,244 776,492,030
Restatement (1,619,106) - (2,470,973) - (4,090,079) -
Net assets - October 1, as restated 210,343,338 213,233,354 562,004,827 563,258,676 772,348,165 776,492,030
Net position - September 30 222,914,589$ 211,962,444$ 582,993,145$ 564,475,800$ 805,907,734$ 776,438,244$
City of Gainesville Changes in Net Position
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Governmental activities. Transportation expenses declined from the prior year due to the completion of large projects in
prior years. As in prior years, fiscal year 2014’s expenses were dominated by public safety expenses.
Key elements of governmental activities revenues are as follows:
The primary change in revenues was the $6 million unrealized investment gain in fiscal year 2014 due to the recovery of market conditions that led to a significant unrealized loss in the prior fiscal year.
Business-type activities. Business-type activities’ key elements for fiscal year 2014 are as follows:
Utilities operating sales and service revenue increased $41.3 million, or 13%. This increase is the result of rate increases implemented in October 2013, along fuel adjustment activity.
The number of customers for electric services increased 0.9%, for water increased 0.6%, for wastewater services increased 0.8%, and for gas services increased 0.9%.
Gainesville Regional Utilities is in the process of remediation efforts at a former manufactured gas plant site. The costs incurred to date total $28.1 million and the total costs of the project are
Charges For Services
26%
Operating Grants & Contributions
7% Capital Grants &
Contributions 5%
Property Taxes 27%
Other Taxes 22%
Other 13%
Revenues by Source - Governmental Activities
$0
$10
$20
$30
$40
$50
$60
$70
General Government
Public Safety Physical Environment
Transportation Economic Environment
Human Services Culture & Recreation
Interest on Long Term Debt
Expenses & Program Revenues - Governmental Activities (in millions of dollars)
Expenses
Program Revenues
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estimated at $28.9 million. A regulatory asset and liability have been accrued to account for the cost and cost recovery of the expense, which is being amortized as costs are incurred and customer revenues are received. The City’s Stormwater Fund is also participating in the remediation of this property.
The Utility transferred $8.9 million to rate stabilization in fiscal year 2014 as a result of rate increases.
For the Utility Fund, amounts to be recovered from future revenue increased $26.4 million in fiscal year 2014 due to the start of the commercial operation of the GREC biomass plant in December 2013.
Long-term debt and capital assets of the Utility both increased by approximately $1 billion due to a capital lease obligation and corresponding asset related to the GREC biomass plant.
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 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, unreserved fund balance may serve as a useful measure of the City’s net resources available for spending at the end of a fiscal year. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $73,621,850, a decrease of $10,839,520 in comparison with the prior year balance. Approximately 3.7% ($2,753,498) of this total amount constitutes nonspendable fund balance, which are amounts that are not in spendable form, primarily constituted of long-term receivables. An additional 62.5% ($45,981,942) is restricted, indicating that funds can only be spent for specific purposes stipulated by external entities. Approximately 16.9% ($1,361,332 and $11,126,119, respectively) are committed and assigned for spending at the government’s discretion. The remaining 16.9% ($12,398,959) of fund balance is unassigned to indicate that it has no internal or external restrictions or commitments.
$0
$50
$100
$150
$200
Electric Gas Water Wastewater Grucom Regional Transit
Stormwater Ironwood Florida Bldg Code
Solid Waste
Expenses & Program Revenues - Business-Type Activities (in millions of dollars)
Expenses
Program Revenues
$ M
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The general fund is the chief operating fund of the City. At the end of the current fiscal year there was $14,520,395 in unassigned fund balance of the general fund, while total fund balance was $18,767,991. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance is 13.8% of total expenditures and transfers, while total fund balance represents 17.8% of that same amount. The fund balance of the City’s general fund increased by $1,627,528 during the current fiscal year. The original budget anticipated the use of fund balance in fiscal year 2014 of $88,000. While communications services taxes came in significantly lower than anticipated, those were offset by other revenues including charges for services and unrealized gains coming in higher than budgeted. The General Fund also experienced departmental budgetary savings of $3.2 million during FY14.
The special revenue funds have a total fund balance of $23,285,218, which represents a decrease of $941,218 from last year’s balance. The debt service funds have a total fund balance of $607,176. The net decrease in fund balance for the current year for these funds was $153,197. Fund balance in the capital projects funds decreased by $11,372,633 to end the fiscal year at $30,961,465. This decrease is primarily due to the planned expenditures of bond funds on capital projects. Proprietary funds. The City’s proprietary fund financial statements provide the same type of information found in the government-wide financial statements, but in more detail. Factors concerning the finances of these funds have been addressed in the discussion of the City’s business-type activities. General Fund Budgetary Highlights The difference between the original and final revenue budget was a decrease of approximately $103,000 or 0.2%. The difference between the original and final general fund budget for expenditures was approximately $718,954, or 0.8%. There were no significant budget amendments. The most significant variances between the final budget and actual results for general fund revenues were for communications services taxes which were realized at $368,159 or 7.7% below budgeted amounts and miscellaneous revenue which came in at $489,154 or 34.4% over budgeted amounts, primarily due to higher unrealized gains than anticipated. The most significant variances between final budget and actual expenditures are found in general government ($899,098 below budgeted amounts), public safety ($1,327,561 below budgeted amounts) and transportation ($910,635 below budgeted amounts). Due to regular budget monitoring, most departments ended the fiscal year with expenditures below budgeted amounts. The largest savings were realized by Public Works ($762,033), Police ($1,217,972), Human Resources ($254,145) and Neighborhood Improvement ($234,145). Capital Asset and Debt Administration Capital assets. The City’s investment in capital assets for its governmental and business type activities as of September 30, 2014 totals $2,493,514,879 (net of accumulated depreciation). The investment in capital assets includes land, buildings, improvements, machinery and equipment, utility plant & equipment, infrastructure, roads, bike paths and sidewalks. Major capital asset events during the fiscal year include:
Approximately $6.7 million in road maintenance, repair and construction. Acquisition of about $2.0 million in vehicles for the fleet. $1 million of that total was spent on
new, more fuel efficient police cruisers. Parks and recreation projects totaling $0.75 million, including Smoky Bear Park improvements. Completion of the GPD Headquarters Building replacement with fiscal year 2014 costs of $5.8
million. Stormwater work at the Depot Park Site of $1.4 million. Improvements to the One Stop Homeless Assistance Center also known as the Grace
Marketplace of $1.4 million. Regional Transit System expended approximately $21.2 million for construction of the new
South Campus site. The addition of approximately $1 billion of Utility plant in service under capital lease for the
GREC biomass plant.
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Electric transmission and distribution expansion was $12.1 million, of which $2.8 million pertained to underground system improvements.
Gas distribution plant was expanded $3.0 million. This included $1.1 million in gas distribution mains, $0.9 million in residential gas services, and $0.5 million in meter change outs.
Telecommunication fiber cable and electronics expansion was $2.1 million, which included approximately $1.7 million in fiber and related infrastructure installation and approximately $376,000 in electronics upgrades.
Energy supply capital expenses included approximately $9.6 million for the JR Kelly (JRK) and Deerhaven plants. These expenditures included $626,000 for the Deerhaven 2 (DH2) Pulverizer Main Gear Box project and $456,000 on the JRK Cooling Tower Improvements project.
Governmental Business-type activities activities Total
FY14 FY13 FY14 FY13 FY14 FY13 Land 32,906,987$ 30,338,302$ 7,279,222$ 7,270,472$ 40,186,209$ 37,608,774$
Utility P&E - - 1,073,866,245 1,084,260,404 1,073,866,245 1,084,260,404 Utility Capital Lease - - 980,375,754 - 980,375,754 - Buildings 51,649,358 34,962,718 5,953,582 5,054,041 57,602,940 40,016,759 Improvements 9,454,894 7,577,013 2,001,637 1,954,066 11,456,531 9,531,079
Mach & equip 10,961,496 10,726,015 18,090,329 19,162,326 29,051,825 29,888,341 Infrastructure 78,021,990 65,172,974 11,891,637 10,596,021 89,913,627 75,768,995
Const in prog 20,893,574 40,649,374 190,168,174 143,931,014 211,061,748 184,580,388
Total 203,888,299$ 189,426,396$ 2,289,626,580$ 1,272,228,344$ 2,493,514,879$ 1,461,654,740$
City of Gainesville's Capital Assets (net of depreciation)
Additional information on the City’s capital assets can be found in Note 6 on pages 62-63 of this report. Bonded debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $1,076,612,626. This entire amount represents bonds secured solely by specified revenue sources (i.e., revenue bonds and notes) and excludes issuance premiums and discounts.
Governmental Business-type activities activities Total
Pension obligation bonds 79,230,933$ -$ 79,230,933$ Revenue bonds & notes 45,250,629 952,131,064 997,381,693 Total 124,481,562$ 952,131,064$ 1,076,612,626$
City of Gainesville's Outstanding Bonded Debt
The City’s total bonded debt decreased by approximately $37.5 million, or 3.4% during the current fiscal year. This represents the scheduled paydown of existing debt. No new debt was issued during fiscal year 2014, although existing debt was refunded. As a result of the start of commercial operation of the GREC biomass plant in December 2013, GRU added a capital lease liability of $994 million. The City’s utility system debt is rated Aa2, AA, and AA- by Moody’s Investors Services, Standard & Poor’s, and Fitch Ratings, respectively for its revenue bonds. The utility system has ratings of VMIG 1, A- 1 and F1+ with Moody’s Investors Services, Standard & Poor’s (S&P), and Fitch Ratings, respectively for
MDA - 9
its commercial paper. The Moody’s underlying rating on the General Government First Florida Governmental Financing Commission Loans are Aa3. The Fitch rating on the City’s pension bonds was increased in fiscal year 2005 from A to A+ and the City’s implied underlying general obligation bond rating was also increased from A+ to AA-. Additional information on the City’s long-term debt can be found in Note 5 on pages 49-61 of this report. Economic Factors and Next Year’s Budgets and Rates Some of the significant factors considered in preparing the City’s fiscal year 2015 budget were: The transfer to the General Fund from the Utility accounts for approximately 33% of General
Fund revenues, and is based on formulas approved by the City Commission. To provide budgetary stability and cash-flow certainty, the transfer was set at fixed amounts for FY 2011 through FY 2014, with an average growth rate of 2.84% over that period. This formula was renegotiated for the years starting in FY2015 at a lower amount, reduced for property tax received by the City from the GREC biomass plant and set to increase annually at a 1.5% rate. This resulted in a reduction of approximately $2.4 million in the transfer amount between FY 2014 and FY 2015.
Property tax revenues have flattened due to a combination of legislative action and a soft real estate market. The taxable values appear to have reached their bottom, as valuations increased from FY 2014 to FY 2015. The City Commission approved setting the millage rate at 4.5079 which was equal to the roll back rate.
Utility tax revenues are generated through taxes levied on utility customers within the City’s corporate limits. The FY15 forecast of utility tax revenues was reduced by $719,185 primarily due to changes in the utility’s rate structure.
Two significant revenues which are expected to improve are State Revenue Sharing and Half Cent Sales Tax which are projected to generate approximately 3% more revenue in FY 2015.
The City Commission maintained the fire assessment, which was added in FY 2011, bringing needed diversification to the revenue base during a period of generally flat revenue growth. Gainesville has the highest percentage of property off the tax roll of any municipality in Florida, with 59% of the value of property exempt. The fire assessment broadens the base of those who pay for services delivered by the City. This is expected to generate approximately $5.2 million in FY 2015.
Pension liabilities are long-term in nature and the investment plan and asset allocation strategy to fund these liabilities should be long-term as well. To that end, approximately 70% of the plan assets of the City’s two defined benefit pension plans are invested in equities. The City has negotiated and implemented pension reform for the General and Consolidated pension plans to mitigate the increases in contributions due to poor market performance during the recession and changing employee and retiree demographics.
The FY 15-19 capital improvement plan includes over $18 million in new funding to address infrastructure and other capital needs. One key feature of this plan is the establishment of recurring funding earmarked for equipment replacement, facilities maintenance and road resurfacing.
Two of every three area jobs are supplied by the government, education and health services sectors. Such an economic structure tends to mitigate the impact of external economic stimuli. Gainesville’s economy does not rise as much as the national average during economic expansions, nor fall as much during economic declines.
This area’s primary economic engine, the University of Florida (UF) has a number of ambitious expansion plans in progress which will contribute to long-term growth for the City:
o The UF Health Science Center and Shands Healthcare have announced a five-year, $580 million plan with the goal of adding 300 faculty positions. This expansion plan includes renovations and additions to the children’s hospital and the addition of a new specialty tower for neuromedicine and cardiovascular specialties. This will result in the infusion of new jobs and the expansion of physical facilities, expanding the local economy.
o The Florida Innovation Hub (the Hub) is a 48,000 square foot “super incubator” located between UF and downtown that currently is housing 21 startup technology companies
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and ten resident service providers (attorneys, auditors, capital). In addition to tech startups, the Hub is home to UF’s Office of Technology Licensing and UF Tech Connect. Both assist with getting emerging technologies on the market. This project is driving job creation and economic development and functions as a bridge between downtown Gainesville and the UF campus along 2nd Avenue. It is expected to produce 3,000 jobs in growing industries such as health technologies and green energy. UF ranked fourth nationally in launching startups in 2013.
o UF is expanding Hull Road as part of the Village Point (Urban Village) project which will feature a mix of residential, retail and a large convention center.
A major redevelopment and redesign of a major retail center, Butler Plaza, in Southwest Gainesville.
The Northwest 13th Street area has been experiencing a revitalization with a new Lucky’s and a Burlington Coat Factory.
A new development plan has been submitted and approved by the City Commission for a significant piece of real estate that has stood undeveloped at the corner of University Avenue and 13th Street.
Utility highlights for the 2015 fiscal year budget are as follows: The primary factors affecting the utility industry include environmental regulations, restructuring
of the wholesale energy market, the formation of independent bulk power transmission systems, the formation of an Electric Reliability Organization (ERO) under FERC jurisdiction and the increasing strategic and price differences among various types of fuels. No state or federal legislation is pending or proposed at this time for retail competition in Florida.
Utilities, and particularly electric utilities, are subject to increasing federal, state and local statutory and regulatory requirements with respect to the location and licensing of facilities, safety and security, air and water quality, land use and other environmental factors.
As of January 1, 2015, the Environmental Protection Agency’s (EPA) Cross State Air Pollution Rule (CSAPR) is in effect but only for ozone season (May to September) in Florida. The EPA promulgated the Mercury Air Toxics Rule (MATS) to reduce emissions of toxic air pollutants from power plants. Results of the 2014 operational testing of the new air quality control systems at DH2 showed that performance targets were achieved and compliance is assumed.
Legislation and regulation at the federal level has been proposed to mandate the use of renewable energy and to constrain the emission of greenhouse gases. GRU’s institution of a solar feed-in-tariff and contract to purchase power from a 100 MW biomass fueled power plant will serve to hedge against these uncertainties.
The Utility’s long term energy supply strategy is to encourage maximum cost-effective energy conservation, renewable energy in combination with GRU owned generation and purchased power while managing potential regulatory requirements. Based on the most recent forecasts, the Utility has adequate reserves of generating capacity to meet forecasted loads plus a reserve margin through 2022. This forecast incorporates new population forecasts and changed economic conditions.
GRU management, with the approval of the City Commission, has entered into a long term contract to obtain dependable capacity, energy, and environmental attributes from GREC’s 100 megawatt biomass fueled power plant. The facility is located on a portion of land leased from the Utility’s Deerhaven power plant site and is owned by a third party. The plant became commercially operable in December 2013. By diversifying GRU’s fuel mix, the plant is expected to provide a long term hedge against volatile fossil fuel costs.
Requests for Information This financial report is designed to provide a general overview of the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 200 East University Avenue, Gainesville, Florida, 32601.
Component Unit Business-
Governmental Type Activities Activities Total GEZDA
ASSETS Cash and cash equivalents 488,000$ 3,550$ 491,550$ -$ Equity in pooled cash and investments 87,675,231 72,702,228 160,377,459 5,217 Investments 1,739,627 - 1,739,627 - Receivables 9,135,019 53,585,924 62,720,943 - Internal balances (7,372,351) 7,372,351 - - Inventories 159,008 19,282,797 19,441,805 - Prepaids 23,204 - 23,204 - Other assets and regulatory assets - 1,876,215 1,876,215 - Assets held for evidence 315,251 - 315,251 - Other noncurrent assets - 44,650,346 44,650,346 - Restricted assets:
Temporarily restricted: Cash and cash equivalents - 193,441,500 193,441,500 -
Negative net pension obligation asset 51,563,599 - 51,563,599 - Negative net OPEB obligation asset 18,282,553 - 18,282,553 - Capital assets (net of accumulated depreciation):
Utility plant and equipment - 1,073,866,245 1,073,866,245 - Utility plant and equipment - under capital lease - 980,375,754 980,375,754 - Buildings 51,649,358 5,953,582 57,602,940 - Improvements other than buildings 9,454,894 2,001,637 11,456,531 - Machinery and equipment 10,961,496 18,090,329 29,051,825 - Infrastructure 78,021,990 11,891,637 89,913,627 -
Capital assets (not depreciated): Land 32,906,987 7,279,222 40,186,209 - Construction in progress 20,893,574 190,168,174 211,061,748 -
Total assets 365,897,440 2,682,541,491 3,048,438,931 5,217
DEFERRED OUTFLOWS OF RESOURCES Unamortized loss on refunding of bonds 1,307,321 28,765,946 30,073,267 - Accumulated decrease in fair value of hedging derivatives - 50,748,859 50,748,859 -
Total deferred outflows of resources 1,307,321 79,514,805 80,822,126 -
LIABILITIES Accounts payable 14,482,826 36,720,609 51,203,435 - Accounts payable - payroll - 487,417 487,417 - Accrued interest payable 310,645 - 310,645 - Unearned revenue 89,152 - 89,152 - Fuel adjustment - 15,963,888 15,963,888 - Liabilities payable from restricted assets:
Accrued interest payable - 18,540,801 18,540,801 - Other liabilities payable from restricted assets - 12,007,780 12,007,780 -
Long-term debt due within one year 5,889,661 38,812,587 44,702,248 - Long-term debt due in more than one year 122,960,942 1,922,540,852 2,045,501,794 - Other noncurrent liabilities - 14,768,443 14,768,443 - Fair value of derivative instruments - 55,103,515 55,103,515 -
Total liabilities 143,733,226 2,114,945,892 2,258,679,118 -
DEFERRED INFLOWS OF RESOURCES Rate stabilization - 64,117,259 64,117,259 - Business taxes not yet earned 556,946 - 556,946 -
Total deferred inflows of resources 556,946 64,117,259 64,674,205 -
NET POSITION Net investment in capital assets 163,117,931 387,916,136 551,034,067 - Restricted for:
Debt service - 21,055,925 21,055,925 - Capital projects 26,128,699 - 26,128,699 - Utility plant improvement - 39,313,780 39,313,780 - Tax increment zones 10,750,009 - 10,750,009 - Federal and state grants 3,801,059 - 3,801,059 - Cemetery care 1,782,360 - 1,782,360 - Other purposes - 601,672 601,672 -
Unrestricted 17,334,531 134,105,632 151,440,163 5,217 Total net position 222,914,589$ 582,993,145$ 805,907,734$ 5,217$
The notes to the financial statements are an integral part of this statement.
CITY OF GAINESVILLE, FLORIDA STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
Primary Government
1
Operating Capital Charges for Grants and Grants and Governmental Business-type
FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions Activities Activities Total GEZDA PRIMARY GOVERNMENT Governmental activities: General government 16,176,189$ 13,124,551$ 7,381$ -$ (3,044,257)$ -$ (3,044,257)$ -$ Public safety 64,021,054 8,399,721 2,976,452 695,145 (51,949,736) - (51,949,736) - Physical environment 2,871,836 60,304 267,977 2,684,312 140,757 - 140,757 - Transportation 15,142,893 2,330,508 815,067 1,682,117 (10,315,201) - (10,315,201) - Economic environment 8,602,592 422,816 1,484,970 - (6,694,806) - (6,694,806) - Human services 2,216,579 - 453,527 - (1,763,052) - (1,763,052) - Culture & recreation 9,332,876 1,148,942 1,031,260 - (7,152,674) - (7,152,674) - Interest on long-term debt 6,711,350 - - - (6,711,350) - (6,711,350) - Total governmental activities 125,075,369 25,486,842 7,036,634 5,061,574 (87,490,319) - (87,490,319) -
Business-type activities: Electric 291,110,843 268,774,902 - - - (22,335,941) (22,335,941) - Gas 22,764,377 23,274,242 - - - 509,865 509,865 - Water 25,516,070 29,768,654 - 856,037 - 5,108,621 5,108,621 - Wastewater 27,740,855 35,579,952 - 668,466 - 8,507,563 8,507,563 - GRUCom 11,761,638 11,257,805 - - - (503,833) (503,833) - Regional Transit System 24,279,240 15,078,622 25,213,077 1,043,947 - 17,056,406 17,056,406 - Stormwater Management 6,351,290 7,238,729 - 3,083,698 - 3,971,137 3,971,137 - Ironwood Golf Course 1,456,632 919,004 - 6,572 - (531,056) (531,056) - Florida Building Code Enforcement 2,306,430 2,297,733 - - - (8,697) (8,697) - Solid Waste 7,594,037 9,042,706 - - - 1,448,669 1,448,669 - Total business-type activities 420,881,412 403,232,349 25,213,077 5,658,720 - 13,222,734 13,222,734 - Total primary government 545,956,781$ 428,719,191$ 32,249,711$ 10,720,294$ (87,490,319) 13,222,734 (74,267,585) -
COMPONENT UNIT Gainesville Enterprise Zone Development Agency -$ -$ -$ -$ - - - -
General revenues: Property taxes 26,476,044 - 26,476,044 - Franchise & utility taxes 10,412,699 - 10,412,699 - Communications services tax 4,431,329 - 4,431,329 - Half cent sales tax 6,672,508 - 6,672,508 - State revenue sharing (unrestricted) 3,945,358 - 3,945,358 - Gain on sale of capital assets 9,275 - 9,275 - Other unrestricted general revenues 3,486,629 39,459,939 42,946,568 - Investment gain 6,061,874 6,871,499 12,933,373 121 Transfers 38,565,854 (38,565,854) - - Total general revenues and transfers 100,061,570 7,765,584 107,827,154 121 Change in net position 12,571,251 20,988,318 33,559,569 121 Net position - beginning of year, as previously reported 211,962,444 564,475,800 776,438,244 5,096 Restatement (1,619,106) (2,470,973) (4,090,079) - Net position - beginning of year 210,343,338 562,004,827 772,348,165 5,096 Net position - end of year 222,914,589$ 582,993,145$ 805,907,734$ 5,217$
The notes to the financial statements are an integral part of this statement.
Primary Government Component Unit
CITY OF GAINESVILLE, FLORIDA STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2014
PROGRAM REVENUES NET(EXPENSE)REVENUE AND CHANGES IN NET POSITION
2
CITY OF GAINESVILLE, FLORIDA BALANCE SHEET
GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
OTHER TOTAL GOVERNMENTAL GOVERNMENTAL
GENERAL FUNDS FUNDS ASSETS
Equity in pooled cash and investments 7,964,073$ 56,761,260$ 64,725,333$
Investments - 1,739,627 1,739,627 Receivables 3,052,484 6,081,688 9,134,172 Due from other funds 9,206,819 11,267 9,218,086 Advances to other funds 2,577,274 - 2,577,274 Inventories 13,249 - 13,249 Assets held for evidence - 315,251 315,251 Total assets 22,813,899$ 64,909,093$ 87,722,992$
LIABILITIES Accounts payable and accrued liabilities 3,488,962$ 2,028,625$ 5,517,587$ Due to other funds - 5,295,497 5,295,497 Unearned revenues - 89,152 89,152 Advances from other funds - 2,577,274 2,577,274 Total liabilities 3,488,962 9,990,548 13,479,510
DEFERRED INFLOWS OF RESOURCES Business taxes not yet earned 556,946 - 556,946 Deferred revenue-notes receivable - 59,838 59,838 Deferred revenue-assessments net yet available - 4,848 4,848 Total deferred inflows of resources 556,946 64,686 621,632
FUND BALANCES Nonspendable 2,753,498 - 2,753,498 Restricted - 45,981,942 45,981,942 Committed - 1,361,332 1,361,332 Assigned 1,494,098 9,632,021 11,126,119 Unassigned 14,520,395 (2,121,436) 12,398,959
Total fund balances 18,767,991 54,853,859 73,621,850
Total liabilities, deferred inflows of resources and fund balances 22,813,899$ 64,909,093$ 87,722,992$
The notes to the financial statements are an integral part of this statement.
3
Total fund balances: governmental funds balance sheet 73,621,850$
Capital assets used in governmental activities are not financial resources and, therefore are not reported in the funds. The cost of the assets is $350,314,334 and the accumulated depreciation is $158,898,071. This excludes internal service fund capital assets which are included in the internal service fund adjustment below. 191,416,263
Long term liabilities, including compensated absences, are not due and payable in the current period and therefore are not reported in the fund financial statements. Long-term liabilities of internal service funds are included in the internal service fund adjustment below. Other governmental long-term liabilities at year end consist of:
Bonds and promissory notes payable 124,481,562 Capital lease payable 352,505 Compensated absences 3,727,235 (128,561,302)
Unamortized losses on refundings of debt are reported in governmental activities but not in governmental funds 1,307,321
Governmental funds do not report a liability for accrued interest until it is due and payable. Accrued interest must be reported as a liability in the government-wide financial statements. (310,645)
In fund financial statements, governmental fund types recognize discounts and premiums during the current period as other financing sources and uses. In the government-wide statements, discounts and premiums are applied against bonds payable.
Discounts 40,484 Premiums (208,282) (167,798)
Unavailable revenue is deferred in governmental funds but not in the government-wide financial statements 64,686
Negative net pension obligation and OPEB obligation assets created through treatment of Taxable Pension Obligation Bonds and OPEB Bonds as employer contributions to defined benefit pension and OPEB plans are not recognized in the funds.
Negative net pension obligation asset 51,563,599 Negative net OPEB obligation asset 18,282,553 69,846,152
Internal service funds are used by management to charge the costs of fleet management, general insurance, employees health insurance, and retirees health insurance. The assets and liabilities of the internal service funds, including net capital assets of $12,472,036 and compensated absences liabilities of $121,502, are included in governmental activities in the statement of net position. 15,698,062
Net position of governmental activities 222,914,589$
The notes to the financial statements are an integral part of this statement.
CITY OF GAINESVILLE, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2014
4
CITY OF GAINESVILLE, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
OTHER TOTAL GOVERNMENTAL GOVERNMENTAL
GENERAL FUNDS FUNDS REVENUES Taxes 39,141,991$ 5,807,425$ 44,949,416$ Licenses and permits 950,644 - 950,644 Intergovernmental 11,847,791 15,654,740 27,502,531 Charges for services 13,697,386 1,835,867 15,533,253 Fines and forfeitures 1,360,788 463,267 1,824,055 Miscellaneous 1,911,866 5,108,598 7,020,464 Total revenues 68,910,466 28,869,897 97,780,363
EXPENDITURES Current: General government 14,867,086 324,819 15,191,905 Public safety 55,009,624 5,040,536 60,050,160 Physical environment 181,997 2,163,814 2,345,811 Transportation 11,159,632 2,333,758 13,493,390 Economic environment 398,114 7,924,388 8,322,502 Human services 112,518 707,018 819,536 Culture and recreation 6,776,558 1,362,014 8,138,572 Debt service: Principal - 12,884,423 12,884,423 Interest and fiscal charges - 6,803,431 6,803,431 Bond issuance costs - 41,837 41,837 Capital outlay - 18,682,145 18,682,145 Total expenditures 88,505,529 58,268,183 146,773,712 Excess of revenues over(under) expenditures (19,595,063) (29,398,286) (48,993,349)
OTHER FINANCING SOURCES(USES) Debt issuance - 14,715,000 14,715,000 Transfers in 37,863,511 21,947,172 59,810,683 Transfers out (16,640,920) (5,015,934) (21,656,854) Payment to refunded bond escrow agent - (14,715,000) (14,715,000) Total other financing sources(uses) 21,222,591 16,931,238 38,153,829 Net change in fund balances 1,627,528 (12,467,048) (10,839,520)
Fund balances - beginning 17,140,463 67,320,907 84,461,370
Fund balances - ending 18,767,991$ 54,853,859$ 73,621,850$
The notes to the financial statements are an integral part of this statement.
5
Net changes in fund balances - total governmental funds (10,839,520)$
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
This is the capital outlay recorded in the current period, excluding internal service fund activity. 23,124,036
This is the depreciation expense recorded in the current period, excluding internal service fund activity. (6,785,275)
In the governmental funds, revenue cannot be recognized until it is available to liquidate liabilities of the current period. In the statement of activities, revenue is recognized as soon as it is earned regardless of its availability. (97,949)
Issuance of long-term debt provides current financial resources to governmental funds. These transactions have no effect on net position. This is the amount of long-term debt issued in the current period. (14,715,000)
Proceeds of pension obligation bonds issued during FY2003 and other post-employment benefit obligation bonds issued during FY2005 were contributed to the pension plans and the OPEB plan to retire the unfunded obligations. These transactions resulted in contributions in excess of the required amounts which result in the reporting of an asset on the Statement of Net Position. On the Statement of Activities, the impact is the amortization of the Negative NPO and Negative Net OPEB Obligation during the current fiscal year.
Amortization of Negative Net Pension Obligation (4,730,252) Amortization of Negative Net OPEB Obligation (693,726) (5,423,978)
The repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions, however, have no effect on net position This is the amount of repayment of principal of long-term debt, including $13,710,000 of refunded debt. 26,594,423
Governmental funds report the effect of bond premiums and discounts when debt is issued, whereas these amounts are deferred and amortized in the statement of activities. This is the amount of the effect of the difference in treatment of bond premiums and discounts.
Amortization of bond premiums 53,988 Amortization of bond discounts (3,360) 50,628
Losses on refundings of debt are reported in governmental activities but not in governmental funds. Loss on refunding for debt issued in FY14 1,157,994 Amortization of loss on refunding (91,329) 1,066,665
Governmental funds do not recognize expenditures for the long-term accrued liability associated with compensated absences. This is the amount of the change in the liability amount, excluding the amount attributable to internal service funds, which is included in the internal service fund adjustment below. 46,433
Governmental funds do not recognize expenditures for the liability associated with accrued interest payable on long-term debt. This is the amount of the change in the liability amount. 22,585
Internal service funds are used by management to charge the costs of fleet maintenance and insurance to individual funds. A portion of the net revenue of certain activities of internal service funds is reported in governmental activities. (471,797)
Change in net position of governmental activities 12,571,251$
The notes to the financial statements are an integral part of this statement.
FOR THE YEAR ENDED SEPTEMBER 30, 2014
CITY OF GAINESVILLE, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
6
CITY OF GAINESVILLE, FLORIDA STATEMENT OF NET POSITION
PROPRIETARY FUNDS SEPTEMBER 30, 2014
GOVERNMENTAL Other ACTIVITIES -
Enterprise Internal Utility Funds Totals Service Funds
ASSETS Current assets: Cash and cash equivalents -$ 3,550$ 3,550$ 488,000$ Equity in pooled cash and investments 64,756,240 7,945,988 72,702,228 22,949,898 Receivables 45,937,328 7,648,596 53,585,924 847 Due from other funds 2,032,786 3,624,539 5,657,325 650,934 Inventories 18,143,011 1,139,786 19,282,797 145,759 Prepaid expenses - - - 23,204 Other assets and regulatory assets 1,876,215 - 1,876,215 - Restricted assets - cash and investments 52,028,581 - 52,028,581 -
Total current assets 184,774,161 20,362,459 205,136,620 24,258,642 Noncurrent assets: Restricted assets - cash and investments 141,412,919 - 141,412,919 - Other noncurrent assets 44,650,346 - 44,650,346 - Capital assets (net of accumulated depreciation): Utility plant & equipment 1,047,433,245 - 1,047,433,245 - Utility plant & equipment - under capital lease 1,006,808,754 - 1,006,808,754 - Buildings - 5,953,582 5,953,582 3,434,627 Improvements other than buildings - 2,001,637 2,001,637 1,291,876 Machinery and equipment - 18,090,329 18,090,329 6,900,803 Infrastructure - 11,891,637 11,891,637 258,194 Capital assets (not depreciated): Land - 7,279,222 7,279,222 586,536 Construction in progress 141,988,911 48,179,263 190,168,174 -
Total capital assets 2,196,230,910 93,395,670 2,289,626,580 12,472,036
Total noncurrent assets 2,382,294,175 93,395,670 2,475,689,845 12,472,036
Total assets 2,567,068,336 113,758,129 2,680,826,465 36,730,678
DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refundings of bonds 28,765,946 - 28,765,946 -
Accumulated decrease in fair value
of hedging derivatives 50,748,859 - 50,748,859 -
Total deferred outflows of resources 79,514,805 - 79,514,805 -
The notes to the financial statements are an integral part of this statement.
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
(CONTINUED)
7
CITY OF GAINESVILLE, FLORIDA STATEMENT OF NET POSITION
PROPRIETARY FUNDS SEPTEMBER 30, 2014
GOVERNMENTAL Other ACTIVITIES -
Enterprise Internal Utility Funds Totals Service Funds
LIABILITIES Current liabilities: Accounts payable and accrued liabilities 34,779,342 6,614,539 41,393,881 8,947,937 Accounts payable - payroll - 106,718 106,718 17,303 Due to other funds 5,354,857 4,875,991 10,230,848 - Current portion of long-term debt 16,828,193 339,250 17,167,443 4,673 Fuel adjustment 15,963,888 - 15,963,888 - Current liabilities payable from restricted assets: Accrued interest payable 18,540,801 - 18,540,801 - Current portion of long-term debt 21,480,000 - 21,480,000 - Other liabilities payable from restricted assets 12,007,780 - 12,007,780 - Total current liabilities 124,954,861 11,936,498 136,891,359 8,969,913 Noncurrent liabilities: Long-term debt 1,913,979,921 4,433,502 1,918,413,423 116,829 Fair value of derivative instruments 55,103,515 - 55,103,515 - Other noncurrent liabilities 14,768,443 - 14,768,443 -
Total noncurrent liabilities 1,983,851,879 4,433,502 1,988,285,381 116,829
Total liabilities 2,108,806,740 16,370,000 2,125,176,740 9,086,742
DEFERRED INFLOWS OF RESOURCES
Rate stabilization 64,117,259 - 64,117,259 -
NET POSITION Net investment in capital assets 298,056,254 89,859,882 387,916,136 12,472,036 Restricted for: Debt service 21,055,925 - 21,055,925 - Utility plant improvement 39,313,780 - 39,313,780 - Capital improvement surcharge - 133,072 133,072 - RTS grant - 468,600 468,600 - Unrestricted 115,233,183 6,926,575 122,159,758 15,171,900
Total net position 473,659,142$ 97,388,129$ 571,047,271$ 27,643,936$
The notes to the financial statements are an integral part of this statement.
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
(CONCLUDED)
8
Total net position of Enterprise Funds on the statement of net position of proprietary funds 571,047,271$
Internal service funds are used by management to charge the costs of fleet management, general insurance, and employee health insurance. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.
Look-back adjustment for the consolidation of internal service fund activity involving enterprise fund participants. 11,945,874
Net position of business-type activities 582,993,145$
The notes to the financial statements are an integral part of this statement.
CITY OF GAINESVILLE, FLORIDA RECONCILIATION OF THE STATEMENT OF NET POSITION OF PROPRIETARY FUNDS
TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2014
9
CITY OF GAINESVILLE, FLORIDA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
GOVERNMENTAL
Other ACTIVITIES -
Enterprise Internal
Utility Funds Totals Service Funds
Operating revenues:
Sales and service charges 368,655,555$ 34,576,794$ 403,232,349$ 18,671,297$
Employer contributions - - - 11,116,592
Employee contributions - - - 5,781,480
Other operating revenues 37,239,059 451,258 37,690,317 1,760,361
Total operating revenues 405,894,614 35,028,052 440,922,666 37,329,730
Operating expenses:
Operations and maintenance 213,305,250 34,155,001 247,460,251 12,078,548
Administrative and general 42,492,252 3,259,706 45,751,958 2,120,551
Depreciation and amortization 84,449,419 3,856,047 88,305,466 2,048,197
Benefits paid and other expenses - - - 24,912,373
Total operating expenses 340,246,921 41,270,754 381,517,675 41,159,669
Operating income (loss) 65,647,693 (6,242,702) 59,404,991 (3,829,939)
Nonoperating revenues (expenses):
Investment income 6,275,108 596,391 6,871,499 1,398,347
Interest expense (37,815,529) (117,438) (37,932,967) -
Local option gas tax - 1,769,622 1,769,622 -
Operating grants - 25,213,077 25,213,077 -
Total nonoperating revenue (expenses) (31,540,421) 27,461,652 (4,078,769) 1,398,347
Income (loss) before capital contributions and
transfers 34,107,272 21,218,950 55,326,222 (2,431,592)
Capital contributions 1,524,503 4,134,217 5,658,720 117,000
Transfers in - 1,948,579 1,948,579 606,404
Transfers out (37,316,841) (3,197,592) (40,514,433) (194,379)
Change in net position (1,685,066) 24,104,154 22,419,088 (1,902,567)
Net position - beginning of year, as previously reported 477,815,181 73,283,975 551,099,156 29,546,503
Restatement (2,470,973) - (2,470,973) -
Net position - beginning of year, as restated 475,344,208 73,283,975 548,628,183 29,546,503
Net position - end of year 473,659,142$ 97,388,129$ 571,047,271$ 27,643,936$
The notes to the financial statements are an integral part of this statement.
10
Change in net position - Enterprise Funds 22,419,088$
Internal service funds are used by management to charge the costs of fleet maintenance and insurance to individual funds. A portion of the net revenue of certain activities of internal service funds is reported in business-type activities.
Look-back adjustment for the consolidation of internal service fund activity involving enterprise fund participants. (1,430,770)
Change in net position of business-type activities 20,988,318$
The notes to the financial statements are an integral part of this statement.
FOR THE YEAR ENDED SEPTEMBER 30, 2014
CITY OF GAINESVILLE, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENSES, AND CHANGES IN FUND NET POSITION OF PROPRIETARY FUNDS TO THE STATEMENT OF ACTIVITIES
11
BUSINESS-TYPE ACTIVITIES GOVERNMENTAL ENTERPRISE FUNDS ACTIVITIES
OTHER TOTAL INTERNAL UTILITY ENTERPRISE ENTERPRISE SERVICE FUND FUNDS FUNDS FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 369,172,437$ 38,389,128$ 407,561,565$ 37,134,007$ Cash paid to suppliers (156,891,922) (20,088,650) (176,980,572) (35,484,950) Cash paid to employees (55,973,131) (17,374,797) (73,347,928) (3,058,389) Cash paid for operating transactions with other funds (10,517,970) - (10,517,970) - Other operating receipts 7,696,733 - 7,696,733 195,045
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 153,486,147 925,681 154,411,828 (1,214,287)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Local option gas tax - 1,769,622 1,769,622 - Operating grants - 21,085,432 21,085,432 - Interest paid - (139,535) (139,535) - Interfund Borrowing - 106,518 106,518 - Transfers from other funds - 1,948,579 1,948,579 606,404 Transfers to other funds (37,316,841) (3,197,592) (40,514,433) (194,379)
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACITIVITES (37,316,841) 21,573,024 (15,743,817) 412,025
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal repayments and refundings on long-term debt (26,845,000) 1,206,440 (25,638,560) - Proceeds from sale of capital assets 209,774 4,274 214,048 - Interest paid on long-term debt (38,589,064) (117,438) (38,706,502) - Capital contributions - 4,127,645 4,127,645 - Proceeds from interest rebate-Build America Bonds 5,350,928 - 5,350,928 - Acquisition and construction of capital assets (56,990,480) (26,630,351) (83,620,831) (54,339)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (116,863,842) (21,409,430) (138,273,272) (54,339)
CASH FLOWS FROM INVESTING ACTIVITIES Interest received 706,251 735,926 1,442,177 1,398,347 Purchase of investments (295,386,535) (6,432,278) (301,818,813) (18,577,943) Investment in The Energy Authority (5,845,309) - (5,845,309) - Distributions from The Energy Authority 5,403,728 - 5,403,728 - Proceeds from investment maturities 325,999,310 5,583,606 331,582,916 20,807,878
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 30,877,445 (112,746) 30,764,699 3,628,282
NET INCREASE IN CASH 30,182,909 976,529 31,159,438 2,771,681
CASH - OCTOBER 1, as previously reported 42,443,674 540,731 42,984,405 2,088,274 Restatement 2,932,791 - 2,932,791 -
CASH - OCTOBER 1, restated 45,376,465 540,731 45,917,196 2,088,274
CASH - SEPTEMBER 30 75,559,374$ 1,517,260$ 77,076,634$ 4,859,955$
The notes to the financial statements are an integral part of this statement.
(CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2014
CITY OF GAINESVILLE, FLORIDA STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
12
BUSINESS-TYPE ACTIVITIES GOVERNMENTAL ENTERPRISE FUNDS ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2014
CITY OF GAINESVILLE, FLORIDA STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
OTHER TOTAL INTERNAL UTILITY ENTERPRISE ENTERPRISE SERVICE FUND FUNDS FUNDS FUNDS
OPERATING INCOME (LOSS) 65,647,693$ (6,242,702)$ 59,404,991$ (3,829,939)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Depreciation and amortization 84,449,419 3,856,047 88,305,466 2,048,197 Net costs to be recovered in future rates (13,732,765) - (13,732,765) - (Increase)/decrease in receivables 518,004 3,361,076 3,879,080 (678) (Increase)/decrease in due from other funds - - - (245,430) (Increase)/decrease in inventories 3,043,202 (120,130) 2,923,072 (37,660) (Increase)/decrease in other assets and regulatory assets (711,437) - (711,437) - (Increase)/decrease in restricted and internally designated assets (3,109,085) - (3,109,085) - (Increase)/decrease in noncurrent assets 879,007 - 879,007 - Increase/(decrease) in accounts payable and accrued liabilities 12,665,268 71,390 12,736,658 851,223 Increase/(decrease) in due to other funds 171,036 - 171,036 - Increase/(decrease) in fuel adjustment (5,442,608) - (5,442,608) - Increase/(decrease) in other liabilities and regulatory liabilities 241,771 - 241,771 - (Increase)/decrease in rate stabilization 8,867,764 - 8,867,764 - Increase/(decrease) in utility deposits (1,122) - (1,122) -
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 153,486,147$ 925,681$ 154,411,828$ (1,214,287)$
RECONCILIATION OF CASH TO STATEMENT OF NET POSITION Cash 75,559,374$ 1,517,260$ 77,076,634$ 4,859,955$ Accrued interest 356,903 - 356,903 - CR3 decommissioning reserve 11,264,443 - 11,264,443 - Investments 171,017,020 6,432,278 177,449,298 18,577,943
TOTAL CASH, EQUITY IN POOL AND INVESTMENTS 258,197,740$ 7,949,538$ 266,147,278$ 23,437,898$
PER STATEMENT OF NET POSITION
NONCASH CAPITAL, INVESTING AND FINANCING ACTIVITIES Contribution of capital assets -$ -$ -$ 117,000$ Change in fair value of investments 235,808 (1,123,574) (887,766) (2,036,711) Net costs recoverable in future years (13,732,765) - (13,732,765) - Acquisition of utility plant in service under capital lease (1,006,808,754) - (1,006,808,754) - Acquisition of utility plant in service under long term capital lease obligation 994,108,278 - 994,108,278 - Acquisition of utility construction in progress with construction fund payable (5,093,605) - (5,093,605) - Change in utility plant in service (4,999,956) - (4,999,956) - Change in ineffective portion of hedging derivatives (838,440) - (838,440) - Change in hedging derivatives - interest rate swaps (10,515,189) - (10,515,189) - Change in hedging derivatives - fuel options and futures (114,952) - (114,952) - Change in fair value of derivatives 11,353,627 - 11,353,627 - Other noncash capital, investing and financing activities 150,326 - 150,326 -
NET NONCASH CAPITAL, INVESTING AND FINANCING ACTIVITIES (36,255,622)$ (1,123,574)$ (37,379,196)$ (1,919,711)$
The notes to the financial statements are an integral part of this statement.
(CONCLUDED)
13
PENSION AND OPEB
TRUST FUNDS
ASSETS Cash and cash equivalents 8,616,125$ Equity in pooled cash and investments 8,718,941 Investments, at fair value: Equities 522,354,885 Real estate 60,904,358 Alternative investments 12,190,439 Fixed income: Government bonds 2,999,198 Corporate bonds 13,331,285 Mortgage & asset backed securities 3,040,698
Total investments, at fair value 614,820,863
Investment adjustments: Dividends receivable 208,730 Interest receivable 190,616 Receivable for investments sold 829,976 Payable for investments purchased (482,300)
Total investment adjustments 747,022
TOTAL ASSETS 632,902,951
LIABILITIES Accounts payable and accrued liabilities 65,757
TOTAL LIABILITIES 65,757
NET POSITION RESTRICTED FOR PENSION AND OPEB BENEFITS 632,837,194$
The notes to the financial statements are an integral part of this statement.
CITY OF GAINESVILLE, FLORIDA STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS SEPTEMBER 30, 2014
14
PENSION AND OPEB
TRUST FUNDS
ADDITIONS:
Contributions: Employer contributions: Required 18,390,809$ State on behalf payments, through general fund 1,259,995
Total employer contributions 19,650,804
Employee contributions 9,117,141
Total contributions 28,767,945
Investment income: Net appreciation in fair value of investments 57,656,916 Dividends & interest 7,019,181
Total investment income 64,676,097
Less investment expense 3,391,047
Net investment income 61,285,050
TOTAL ADDITIONS 90,052,995
DEDUCTIONS: Benefit payments 46,316,363 Refunds of contributions 522,218 Administrative expenses 1,303,151
TOTAL DEDUCTIONS 48,141,732
CHANGE IN NET POSITION 41,911,263
NET POSITION - beginning 590,925,931
NET POSITION - ending 632,837,194$
The notes to the financial statements are an integral part of this statement.
CITY OF GAINESVILLE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
15
CITY OF
GAIN __ every path starts with passion
FLORIDA
CITY OF GAINESVILLE, FLORIDA Index to Notes to Financial Statements
September 30, 2014
1. Summary of Significant Accounting Policies A. Reporting Entity 16-17 B. Government -wide and Fund Financial Statements 17 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 18-19 D. Deposits with Financial Institutions and Investments 19-27 E. Receivables 27 F. Inventories 27 G. Capital Assets 27-29 H. Long -term Obligations 29 I. Futures and Options Contracts, Derivatives and Deferred Charges/Credits 30 J. Deferred Outflows of Resources 30 K. Deferred Inflows of Resources 30 L. Costs Recoverable in Future Years 30 M. Contributions in Aid of Construction 30 N. Hedging Derivative Instruments 30 O. Compensated Absences 30-31 P. Risk Management 31-32 Q. Interfund Activity 32 R. Property Taxes 32 S. Revenue Recognition 32-33 T. Budgetary Information 33 U. Statement of Cash Flows 33 V. Enterprise Activities 33 W. Rates and Regulation 33-34 X. Fund Balance Reporting 34-38 Y. Future Accounting Pronouncements 38
2. Retirement Plans A. Defined Benefit Plans 39-46 B. Defined Contribution Pension Plan 47
3. Other Post-Employment Benefits Plan 47-49
4. Deferred Compensation Plan 49
5. Long-Term Debt and Capital Leases Governmental Activities 49-50 Business-type Activities 51-53 Non-Utility Notes 53 Utility Notes 53-54 Debt Service Requirements for Long-term Debt 54 Capital Leases and Related Debt Service Requirements 55-56 Hedging Activities 56-60 Pledged Revenues 60 Changes in Long -term Liabilities 61
6. Capital Assets 62-63
7. Individual Fund Deficits 63-64
8. Composition of Receivables and Payables 64
9. Interfund Receivables, Payables, Advances and Transfers 65-66
CITY OF GAINESVILLE, FLORIDA Index to Notes to Financial Statements
September 30, 2014
10. Enterprise Fund (Utility Fund) Transfers to General Fund 67
11. Commitments and Contingencies 67-77 .
12. Lease Revenue 77
13. Investment in The Energy Authority 78-79
14. Conduit Debt 79
15. Restatement 79
16. Subsequent Events 79-80
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
16
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This Summary of Significant Accounting Policies is presented to assist the reader in interpreting the financial statements. The policies are considered essential and should be read in conjunction with the accompanying financial statements. The accounting policies of the City of Gainesville, Florida (City) conform to generally accepted accounting principles (GAAP) as applicable to governmental units. This report, the accounting systems and classification of accounts conform to standards of the Governmental Accounting Standards Board (GASB) or, where applicable, the Financial Accounting Standards Board (FASB). Gainesville Regional Utilities (GRU or the Utility) is a combined municipal utility system operating electric, water, wastewater, natural gas and telecommunications utilities. GRU is a utility enterprise of the City and is reported as an enterprise fund of the City. GRU has adopted the uniform system of accounts prescribed by the Federal Energy Regulatory Commission (FERC) and in conformity with accounting principles generally accepted in the United States of America using the accrual basis of accounting, including the application of regulatory accounting as described in GASB Statement No. 62 – Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Rates are approved annually by the City Commission. (A) Reporting Entity The City is a Florida municipality established by the Laws of Florida, Section 12760, pursuant to the authority provided in Chapter 165, Florida Statutes, and is governed by an elected seven member Commission. It provides most of the traditional municipal services to its citizens including police and fire protection, community development, streets, recreation, parks, cultural affairs, and other general government activities. It also operates transit, stormwater, golf course, building code enforcement, solid waste, water, wastewater, natural gas distribution, telecommunications and electric utility enterprises. The City does not provide educational, health care, court or detention facilities. As required by generally accepted accounting principles, the accompanying financial statements present the City as a primary government and its component units, entities for which the City is considered financially accountable. The component units are included in the reporting entity because of the significance of their operational relationship with the primary government. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of the organization’s governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. The primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. Blended Component Unit - A legally separate entity, the Community Redevelopment Agency (CRA) was created by ordinance of the City to carry out community redevelopment within the City of Gainesville under Chapter 163 of the Florida Statutes. The City Commission sits as the board of this organization and approves its budget. The CRA is reported as if it were a part of the City because the City Commission is its governing body and because of the existence of a financial benefit/burden relationship. The CRA’s operating fund and four Tax Increment District project funds are reported as separate nonmajor governmental funds. This organization has a September 30 year-end. Separate financial statements of the CRA are prepared and are available by contacting the City at PO Box 490, MS 14, Gainesville, Florida 32627. Discretely Presented Component Unit - The Gainesville Enterprise Zone Development Agency (GEZDA) was created by ordinance of the City to carry out community redevelopment within the City of Gainesville under Chapter 163 of the Florida Statutes. The City Commission appoints the board of this organization and approves its budget. This organization has a September 30 year-end. Separate financial statements of this agency are not prepared.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
17
The following entities are not included in the accompanying financial statements: Gainesville Housing Authority (GHA) GHA is a public housing authority (dependent special district) created under Section 421.04 of the Florida Statutes. The GHA is considered a related organization because the City is responsible for appointing a voting majority of GHA’s board members. The City is not financially accountable for the GHA. Gainesville-Alachua County Regional Airport Authority (GACRAA) GACRAA is an independent special district created for the purpose of providing airport services for citizens of Gainesville and Alachua County, Florida and surrounding areas. The GACRAA is considered a related organization because the City is responsible for appointing a voting majority of GACRAA’s board members. The City is not financially accountable for the GACRAA. The only joint venture in which the City participated in fiscal year 2014 was Gainesville Regional Utilities’ investment in The Energy Authority, which is described in Note 13. (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 nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services. Likewise, the primary government is reported separately from the legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes or other items not properly included among program revenues are reported as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City’s expendable financial resources and the related liabilities (except those accounted for in proprietary or fiduciary funds) are accounted for through governmental funds. The following are the City’s governmental fund types:
General Fund Special Revenue Funds Debt Service Funds Capital Projects Funds
Proprietary Funds are used to account for the City’s ongoing activities which are similar to those often found in the private business sector. The following are the City’s proprietary fund types:
Enterprise Funds Internal Service Funds
Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. The City’s fiduciary fund type includes:
Pension and Other Post-Employment Benefit (OPEB) Trust Funds
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
18
(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, as are the proprietary funds and pension and OPEB trust funds within the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the fiscal period. Measurable refers to the ability to quantify in monetary terms the amount of the revenue and receivable. Available means collectible in the current period or soon enough thereafter to be used to pay liabilities at the balance sheet date. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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. Transfers are recognized in the accounting period in which the interfund receivable and payable arise. Expenditures are recognized in the accounting period in which the related fund liability is incurred, if measurable, except for unmatured principal and interest on long-term debt. Material revenues in the following categories are considered susceptible to accrual because they are both measurable and available to finance expenditures of the current period: Ad Valorem Taxes Intergovernmental Revenue Sales & Franchise Taxes Interest Earned Interest and investment income earnings are recognized when earned and allocated monthly based on each fund’s equity in the pool. The following governmental fund revenues are not considered susceptible to accrual because they are not both measurable and available to finance expenditures of the current period: Fees Licenses and Permits Miscellaneous Charges Rents and Concessions The City reports one major governmental fund: The General Fund is the City’s primary operating fund. It accounts for all resources traditionally associated with governments except those accounted for in another fund. The City reports one major proprietary fund:
The Utility Fund accounts for the activities of the City’s electric generation, transmission and distribution operations, as well as its water, wastewater, natural gas transmission, and telecommunications operations.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds are charges to customers for sales and services. The principal operating revenues for the City’s internal service funds related to general insurance and fleet management are charges to other funds for sales and services. For the internal service fund related to health insurance, the principal operating revenues are employer and employee contributions. Operating expenses for enterprise funds and internal service funds include the cost of sales and service, administrative expenses, depreciation on capital assets, and benefits paid. All revenues and expenses not meeting
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
19
this definition are reported as nonoperating revenues and expenses. Substantially all of Gainesville Regional Utility’s revenues are pledged to the repayment of revenue bonds. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as they are needed. (D) Deposits with Financial Institutions and Investments Deposits and Investments Deposits and investments as of September 30, 2014 are classified in the accompanying financial statements as follows: Statement of net position:
Cash and cash equivalents 491,550$ Equity in pooled cash and investments 160,377,459 Investments 1,739,627 Restricted cash and cash equivalents 193,441,500
Statement of fiduciary net position: Cash and cash equivalents 8,616,125 Equity in pooled cash and investments 8,718,941 Investments: Equities 522,354,885 Real Estate 60,904,358 Alternative Investments 12,190,439 Government Bonds 2,999,198 Corporate Bonds 13,331,285 Mortgage & Asset Backed Securities 3,040,698
Total cash and investments 988,206,065$
Deposits and investments as of September 30, 2014 consist of the following: Defined benefit pension:
Deposits with financial institutions 14,614,715$ Investments 557,673,840
Other post employment benefit (OPEB): Deposits with financial institutions 2,720,351 Investments 57,147,023
Other than defined benefit pension and OPEB: Deposits with financial institutions 75,559,374 Investments 268,869,416 Utilities CR3 decommissioning reserve 11,264,443 Accrued interest receivable 356,903
Total cash and investments 988,206,065$
Investment Policies The City’s total deposits and investments are comprised of three major components, each with its own set of legal and contractual provisions as described below. Defined Benefit Pension Investments These funds represent investments administered by the City’s Defined Benefit Pension Fund Investment Managers. They comprise $557,673,840 of the City’s total fair value of investments, and are exclusive of the $14,614,715 held in cash by the Trustees.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
20
These investments are reported at fair value. The fair value of this plan is derived through valuation efforts done by our investment managers in conjunction with our plan custodian. The fair values for the vast majority of these assets are readily available. For those assets whose fair value is less verifiable, the best available information is used. The City maintains separate investment managers for its equity and fixed income portfolios. The managers are required to comply with Florida statutes, City ordinances, other applicable laws and with the fiduciary standards set forth in the Employees Retirement Income Security Act of 1974 at 29 U.S.C. Section 1140(a)(1)(A)(C). The managers of these funds are permitted to invest in the following instruments: Equity Funds (domestic) Common Stocks Stock Index Futures Convertible and Preferred Stocks American Depository Receipts REITS Limited Liability Companies (LLCs) Equity Funds (international) Restricted to managers specifically hired to invest in international equities Common and Preferred Stocks of foreign issuers domiciled in developed and developing countries (emerging markets) Forward Foreign Currency Exchange Contracts for hedging purposes American and Global Depository Receipts and similar securities Fixed Income Funds (domestic) Must have a rating of investment grade (BBB/Baa) or better United States Treasury and Agency Securities Commercial Paper with either a Standard & Poor’s quality rating of A-1 or a Moody’s quality rating of P-1 and a maturity of 270 days or less Certificates of Deposit up to FDIC or FSLIC insurance coverage or any amount fully collateralized by US Government Securities or issued by an institution which is a qualified public depository within the State of Florida Corporate Bonds, Mortgage Backed Securities, or Asset Backed Securities Yankee Bonds Convertible Securities Money Market or Cash Equivalent Securities Fixed Income Funds (international) Investment Grade Sovereign Issued Debt Investment Grade Corporate Bonds and Commercial Paper Cash Equivalents Certificates of Deposit, Commercial Paper, Direct Obligations of the U.S. Government, Repurchase Agreements, Bankers Acceptances, Custodian STIFs, and other appropriate liquid short-term investments Real Estate and Alternative Assets Discretionary commingled vehicles such as insurance company separate accounts, open-end or closed-end funds and real estate investment trusts (REITS) holding either leveraged or unleveraged positions in real property and real property related assets All must be of institutional investment quality and must be diversified by property type and geographic location Pooled or Commingled Funds The fund may invest in commingled vehicles such as mutual funds, LLCs or common trust funds that are invested in substantially the same manner and same investments as stated above
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
21
Derivatives No use of leverage No use of “linked” securities that have the principal value or interest rate tied to anything not specifically allowed as permissible investments in these guidelines Any structured note must maintain a constant spread relationship with its underlying acceptable index Collateralized mortgage obligations cannot be more sensitive to interest-rate changes than the underlying mortgage-backed security Restricted Direct Investments – Prohibited Short Sales or Margin Transactions Investments in Commodities or Commodity Contracts Direct loans or extension lines of credit to any interested party Letter Stock Unregistered securities and private placements (except those regulated by SEC Rule 144a or as specifically permitted by the Board) Investments and assets for which a generally recognized market is not available or for which there is no consistent or generally accepted pricing mechanism, unless specifically permitted by the Board Other Post Employment Benefit (OPEB) Investments These funds represent investments administered by the City’s OPEB Fund Investment Managers. They comprise $57,147,023 of the City’s total fair value of investments, and are exclusive of the $2,720,351 held in cash by the Trustees. These investments are reported at fair value. The fair value of this plan is derived through valuation efforts done by the City’s investment managers in conjunction with the plan custodian. The fair values for the vast majority of these assets are readily available. For those assets whose fair value is less verifiable, the best available information is used. The City maintains separate investment managers for its equity and fixed income portfolios. The managers of these funds are permitted to invest in the following: Equity Funds (domestic) Common Stocks Stock Index Futures Convertible and Preferred Stocks American Depository Receipts REITS Limited Liability Companies (LLCs) Equity Funds (international) Restricted to managers specifically hired to invest in international equities Common and Preferred Stocks of foreign issuers domiciled in developed and developing countries (emerging markets) Forward Foreign Currency Exchange Contracts for hedging purposes American and Global Depository Receipts and similar securities Fixed Income Funds (domestic) Must have a rating of investment grade (BBB/Baa) or better United States Treasury and Agency Securities Commercial Paper with either a Standard & Poor’s quality rating of A-1 or a Moody’s quality rating of P-1 and a maturity of 270 days or less Certificates of Deposit up to FDIC or FSLIC insurance coverage or any amount fully collateralized by US Government Securities or issued by an institution which is a qualified public depository within the State of Florida Corporate Bonds, Mortgage Backed Securities, or Asset Backed Securities
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
22
Yankee Bonds Convertible Securities Money Market or Cash Equivalent Securities Fixed Income Funds (international) Investment Grade Sovereign Issued Debt Investment Grade Corporate Bonds and Commercial Paper Cash Equivalents Certificates of Deposit, Commercial Paper, Direct Obligations of the U.S. Government, Repurchase Agreements, Bankers Acceptances, Custodian STIFs, and other appropriate liquid short-term investments Real Estate and Alternative Assets Discretionary commingled vehicles such as insurance company separate accounts, open-end or closed-end funds and real estate investment trusts (REITS) holding either leveraged or unleveraged positions in real property and real property related assets All must be of institutional investment quality and must be diversified by property type and geographic location Pooled or Commingled Funds The fund may invest in commingled vehicles such as mutual funds, LLCs or common trust funds that are invested in substantially the same manner and same investments as stated above Derivatives No use of leverage No use of “linked” securities that have the principal value or interest rate tied to anything not specifically allowed as permissible investments in these guidelines Any structured note must maintain a constant spread relationship with its underlying acceptable index Collateralized mortgage obligations cannot be more sensitive to interest-rate changes than the underlying mortgage-backed security Restricted Direct Investments – Prohibited Short Sales or Margin Transactions Investments in Commodities or Commodity Contracts Direct loans or extension lines of credit to any interested party Letter Stock Unregistered securities and private placements (except those regulated by SEC Rule 144a or as specifically permitted by the Board) Investments and assets for which a generally recognized market is not available or for which there is no consistent or generally accepted pricing mechanism, unless specifically permitted by the Board The City also imposes the following limitations on its investment managers: Equity Managers The equity portion of each portfolio manager shall not be more than 10% invested in the securities of any one company at fair value. The portfolio manager shall not make short sales or use margin or leverage. The portfolio manager shall not be invested in commodities, private real estate, or investment art objects. The portfolio manager shall not invest in options, including the purchase, sale or writing of options unless options are “covered” by the corresponding security. The portfolio manager shall not invest in warrants, although warrants issued in connection with stocks held by the fund may be sold, held, or converted by the investment manager at its discretion.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
23
Fixed Income Managers Security ratings reduced beneath the three highest classifications after purchase should be sold by the portfolio manager within a reasonable period of time. Except for treasury and agency obligations, the debt portion of the OPEB fund shall contain no more than 10% of a given issuer irrespective of the number of differing issues. If commercial paper is used, it must be only of the highest quality (A-1 or P-1). Private placement debt is not permissible. Other than Defined Benefit Pension and OPEB Investments These funds comprise $268,869,416 of the City’s total fair value of investments. This figure excludes $75,559,374 of deposits with financial institutions. Deposits The institutions in which the City’s monies were deposited were certified as Qualified Public Depositories under the Florida Public Deposits Act. Therefore, the City’s total bank balances on deposit are entirely insured or collateralized by the Federal Depository Insurance Corporation and the Bureau of Collateral Securities, Division of Treasury, State Department of Insurance. Additionally, under the terms of the Gainesville Regional Utilities Bond Resolution, the depository is restricted to be a bank, savings and loan association or trust company of the United States or a national banking association, having capital stock, surplus and undivided earnings aggregating at least $10 million. Investments The City’s other investments are reported at fair value in accordance with GASB Statement No. 31. Fair value is based on market values. Investments in commercial paper are recorded at cost, which approximates fair value. State statutes, City ordinances and Gainesville Regional Utilities Bond Resolutions authorize the City to invest in the following instruments: Any bonds or other obligations that, as to principal and interest, constitute direct obligations of, or are unconditionally guaranteed by, the United States of America; Certain bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any state; Bonds, debentures, or other evidences of indebtedness issued or guaranteed by an agency or corporation that is created pursuant to an Act of Congress as an agency or instrumentality of the United States of America; New Housing Authority Bonds issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by a pledge of annual contributions under an annual contributions contract or contracts with the United States of America; Direct and general obligations of any state of the United States of America, to the payment of the principal of and interest on which the full faith and credit of such state is pledged, provided that at the time of their purchase under the resolution such obligations are rated by a nationally recognized bond rating agency in either of its two highest rating categories; Certain certificates of deposit, provided that the aggregate of principal amount of all certificates of deposit issued by any institution do not at any time exceed 10% of the total of the capital, surplus and undivided earnings of such institution unless such certificates of deposit are fully insured (for classification purposes, only non-negotiable certificates of deposit are considered deposits, with negotiable certificates considered as investments); Bonds, notes, debentures or other evidences of indebtedness issued or guaranteed by any corporation which are, at the time of purchase, rated by a nationally recognized rating agency in its highest rating category, and by at least one other nationally recognized rating agency in either of its two highest rating categories, for comparable types of debt obligations; Any fully collateralized repurchase agreement with any bank or trust company organized under the laws of any state of the United States or any national banking association or government bond dealer reporting to, trading with and recognized as a primary dealer by the Federal Reserve Bank of New York, which agreement is secured; and Domestic equity mutual funds rated four (4) stars or higher by Morningstar, Inc. and investment trusts rated AAA. The City has a contractual relationship with a Qualified Public Depository in the State of Florida. Under the terms of the contract, essentially all bank balances are transferred into a sweep account at the close of each business day.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
24
The money market account underlying securities are AAA obligations of the United States Government and Corporations with maturities not exceeding 365 days. GRU’s investment policy limits investments to securities with terms of ten years or less to reduce exposure to rising interest rates, unless investments are matched to meet specific cash flow needs. Additionally, the average portfolio term is not to exceed seven years. GRU’s Bond Resolution further limits investments in Utility Plant Improvement and Rate Stabilization accounts to five years. GRU’s investment policy and Bond Resolution limit investments in state and local taxable or tax-exempt debt, corporate fixed income securities, and other corporate indebtedness to investments that are rated by a nationally recognized rating agency in its highest category, and at least one other nationally recognized rating agency in either of its two highest rating categories. At September 30, 2014, all of GRU’s corporate holdings were rated Aa1 or better by Moody’s Investor Services and/or AA+ or better by Standard and Poor’s and/or AA+ or better by Fitch. As of September 30, 2014, all of GRU’s commercial paper investments were rated P-2 or better by Moody’s Investor Services and/or A-2 or better by Standard and Poor’s and/or F1 or better by Fitch. Money belonging to the Evergreen Cemetery Trust Fund (a non-major special revenue fund), is invested in accordance with guidelines established by the Evergreen Cemetery Advisory Committee and/or as approved by the City Commission. These guidelines authorize investments in mutual funds including domestic equities, international equities and fixed income funds, as well as in a money market sweep account for cash balances held in the Evergreen Cemetery Trust bank account. Custodial Credit Risk - Deposits Deposits are exposed to custodial credit risk if they are not covered by depository insurance and they are uncollateralized, collateralized with securities held by the pledging financial institution, or collateralized with securities held by the pledging financial institution’s trust department or agent, but not in the City’s name. All deposits of the City are either covered by depository insurance or are collateralized by the pledging financial institution’s trust department or agent in the City’s name. Detailed information on the City’s policies on custodial credit risk for deposits is described above in the subsection titled “Investment Policies”, separately for each major investment category. Custodial Credit Risk - Investments Investment securities are exposed to custodial credit risk if they are uninsured and are not registered in the name of the government and are held by either the counterparty or by the counterparty’s trust department or agent but not in the government’s name. All identifiable investment securities of the City are either insured or are registered in the Custodian’s Street name for the benefit of the City and are held by the counterparty’s trust department or agent. Detailed information on the City’s policies on custodial credit risk for investments is described above in the subsection titled “Investment Policies”, separately for each major investment category. Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by a rating by a nationally recognized statistical rating organization. The City has separate investment policies for its major investment categories. Detailed information on the City’s policies on credit risk for investments is described above in the subsection titled “Investment Policies”, separately for each major investment category. Guidelines for the credit ratings of specific types of investments are listed within each major investment category’s investment policy description.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
25
Presented below is the rating as of year-end for each investment type. Defined Benefit Pension Investments
Inve s tme nt Type Fair Value Unrate d/ Exe mpt AAA AA A BBB
Common Stock 278,393,127$ 278,393,127$ -$ -$ -$ -$
Mutual Funds 258,975,481 258,975,481 - - - -
Real Estate Inv Trust 2,629,415 2,629,415 - - - -
US Government Bonds 2,485,888 2,418,826 67,062 - - -
Corporate Bonds 13,331,284 - 171,222 1,857,871 8,503,081 2,799,110
Mortgage & Asset Backed 1,858,645 689,632 1,169,013 - - -
Totals 557,673,840$ 543,106,481$ 1,407,297$ 1,857,871$ 8,503,081$ 2,799,110$ OPEB Investments
Investment Type Fair Value Exempt from
Disclosure AAA
Common Stock 55,451,660$ 55,451,660$ -$
US Government Bonds 513,310 - 513,310
Mortgage & Asset Backed 1,182,053 - 1,182,053
Totals 57,147,023$ 55,451,660$ 1,695,363$
Other than Defined Benefit Pension and OPEB Investments – Governmental Activities
Investment Type Fair Value Exempt from
Disclosure AA
Mutual Funds 10,171,601$ 10,171,601$ -$ US Government Bonds 79,731,257 - 79,731,257
Totals 89,902,858$ 10,171,601$ 79,731,257$
Other than Defined Benefit Pension and OPEB Investments – Business-Type Activities
Investment Type Fair Value AAA A-1
Money Market 7,949,538$ 7,949,538$ -$ Commercial Paper 63,407,669 - 63,407,669 Government Agencies 90,407,400 90,407,400 - Government Bonds 3,496,757 3,496,757 - Corporate Bonds 13,705,194 13,705,194 -
Totals 178,966,558$ 115,558,889$ 63,407,669$
Concentration of Credit Risk Investments in any one issuer that represent 5% or more of the City’s investments are reported below. This is presented by the three major categories described above, and is additionally shown using governmental and business type categories. The City’s investment policies do not specifically restrict the concentration allowed to be held with any individual issuer, except that the equity portion of each portfolio manager shall not be more than 10% invested in the securities of any one company at fair value. Investments that represent 5% or more by each category are shown below by issuer and percent of total investments.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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Defined Benefit Pension Investments Only mutual fund investments, which are exempt from disclosure requirements, exceed 5% of total defined benefit pension investments. OPEB Investments No investment in any one issuer exceeds 5% of total OPEB investments. Other than Defined Benefit Pension and OPEB Investments – Governmental Activities
Issuer Investment Type Fair Value % Federal Farm Credit Bureau Federal Agency Securities 23,834,265$ 26.5% Federal Home Loan Mortgage Corp. Federal Agency Securities 19,022,690 21.2% Federal National Mortgage Association Federal Agency Securities 32,874,735 36.6%
Other than Defined Benefit Pension and OPEB Investments – Business-Type Activities
Issuer Investment Type Fair Value % Federal Home Loan Bank Federal Agency Securities 18,772,690$ 11.0% Federal Home Loan Mortgage Corporation Federal Agency Securities 23,368,037 13.7% Federal National Mortgage Association Federal Agency Securities 25,759,135 15.1% Federal Farm Credit Bank Federal Agency Securities 22,057,537 13.2%
Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater is the sensitivity of its fair value to changes in market interest rates. The City’s investment policies do not provide specific restrictions as to maturity length of investments. Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided below, using the segmented time distribution method: Defined Benefit Pension Investments
Investment Type Fair Value < 2 years 2-5 years 5-10 yrs > 10 yrs Common Stock * 278,393,127$ -$ -$ -$ -$ Mutual Funds * 258,975,481 - - - - Real Estate Inv Trust * 2,629,415 - - - - US Government Bonds 2,485,888 22,269 269,662 677,073 1,516,884 Corporate Bonds 13,331,284 3,206,303 4,557,430 2,749,694 2,817,857 Mortgage & Asset Backed 1,858,645 430 13,996 697,290 1,146,929
Totals 557,673,840$ 3,229,002$ 4,841,088$ 4,124,057$ 5,481,670$
* Included but not required to be presented by maturity date
OPEB Investments
Investment Type Fair Value n/a < 5 years 5-10 years > 10 years Common Stock 55,451,660$ 55,451,660$ -$ -$ -$ US Government Bonds 513,310 - 381,992 98,844 32,474 Mortgage & Asset Backed Securities 1,182,053 - 113,234 53,928 1,014,891
57,147,023$ 55,451,660$ 495,226$ 152,772$ 1,047,365$
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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Other than Defined Benefit Pension and OPEB Investments – Governmental Activities Investment Type Fair Value n/a > 5 years
Mutual Funds 10,171,601$ 10,171,601$ -$
US Government Bonds 79,731,257 - 79,731,257
Totals 89,902,858$ 10,171,601$ 79,731,257$ Other than Defined Benefit Pension and OPEB Investments – Business-Type Activities
Investment Type Fair Value n/a < 1 year 1-5 years
Money Market 7,949,538$ 7,949,538$ -$ -$
Commercial Paper 63,407,669 - 63,407,669 -
US Agencies 90,407,400 - 4,069,252 86,338,148
US Government Bonds 3,496,757 - 2,019,140 1,477,617
Corporate Bonds 13,705,194 - - 13,705,194
Totals 178,966,558$ 7,949,538$ 69,496,061$ 101,520,959$
(E) Receivables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of the interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are classified as nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. For the most part, receivables and the related revenues are recognized when determined and billed - either for services rendered, grant entitlements, or reimbursements due, or otherwise measurable and available. Utilities service receivables are recorded at year end for services rendered but unbilled. They are calculated by prorating cycle billings subsequent to September 30, 2014 according to the number of days applicable to the current fiscal year. Receivables are reported net of an estimated allowance for uncollectible accounts. At September 30, 2014, the allowance was $635,454 for the General Fund and $1,591,430 for Enterprise Funds. (F) Inventories The City accounts for its General Fund inventory using the “consumption method”; that is, inventory is budgeted and recorded as items are consumed. Except for inventories of the General Fund, inventories are stated at the lower of cost or market. Cost is determined using the weighted average unit cost method except for fuel in Enterprise Funds, which is determined using the last-in, first-out (LIFO) method. Obsolete and unusable items are expensed. The cost of fuel used for electric generation is charged to expense as consumed. Inventory in the General Fund is recorded at cost. Such inventory is written down to a lower market value if the inventory is affected by physical deterioration or obsolescence. (G) Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, sidewalks, bike paths, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets, other than those recorded in the Utility fund, are defined by the City as assets with an initial, individual cost of more than $2,000 and an estimated useful life in excess of one
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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year. Utility fund capital assets are defined as assets with an initial, individual cost of more than $2,500 and a useful life in excess of more than one year. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated market value on the date donated. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Property, plant, and equipment of the primary government is depreciated using the straight line method over the following estimated useful lives: Buildings ------------------------------------------- 20 to 50 years Improvements other than Buildings ------------ 20 to 30 years Infrastructure – Roads, curb & gutter----------- 50 years Infrastructure – Roads, non-curb & gutter- --- 25 years Infrastructure - Sidewalks---------------------- 50 years Infrastructure – Bike paths---------------------- 25 years Equipment ----------------------------------------- 5 to 20 years Stormwater system ------------------------------- 50 years Streetscape ----------------------------------------- 25 years Depreciation of utility plant is computed using the straight-line method over estimated service lives ranging from 6 to 50 years. The overall depreciation rate was 3.62% in fiscal 2014. The City has elected to report infrastructure acquired prior to October 1, 1979, in addition to complying with the requirement to report infrastructure acquired subsequent to that date. GRU entered into a Participation Agreement in 1977 with Florida Power Corporation (FPC) which became Progress Energy, to purchase a 1.4079% undivided ownership interest, approximately 12.7 megawatt (MW) in Progress Energy’s 860-MW nuclear powered electric generating plant called Crystal River Unit No. 3. In July 2012, Progress Energy merged with and became a wholly owned subsidiary of Duke Energy. GRU does not exercise significant influence or control over the operating or financial policies of Duke Energy. The Nuclear Regulatory Commission (NRC) requires utilities owning nuclear powered electric generating plants to provide financial assurance that funds would be sufficient and available when needed to pay the future decommissioning costs. In accordance with the NRC requirements, GRU established a decommissioning trust. GRU’s carrying balance in this decommissioning trust fund at September 30, 2014, including interest earnings, was approximately $11.3 million. GRU and Florida Municipal Power Agency (FMPA) entered into an agreement whereby the FMPA would act as agent for GRU and CR3 minority owner participants to coordinate the administration of the decommissioning trust funds. Contributions to this trust fund are not available to the City for any other purpose except for the decommissioning of CR3. Contributions were based on independent studies, which took into account the anticipated future decommissioning costs and anticipated investment returns. Future contribution amounts were based on updated cost estimates and trust fund earnings. In September 2009, CR3 began an outage for normal refueling and maintenance as well as an uprate project to increase generating capability and to replace two steam generators. During preparations to replace steam generators, workers discovered a delamination (or separation) within the concrete at the periphery of the containment building. After reviewing all options to repair the unit, Duke Energy announced in February 2013 its intention to retire the CR3 nuclear power plant. Duke Energy expects that the current decommissioning fund balances are sufficient to decommission the plant (including future investment growth of the funds). During 2013, Duke Energy provided GRU with insurance proceeds of $3.5 million from Duke Energy’s settlement with its insurance provider Nuclear Electric Insurance, LTD (NEIL). GRU determined $2.9 million of these insurance proceeds were settlement for damages related to the plant and reduced its net investment in CR3 by these
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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amounts. The remaining $600,000 of the $3.5 million insurance proceeds received in 2013 was a result of entitlement from GRU participation as a wholesale purchaser of nuclear energy as part of a five year Power Purchase Agreement for 50 MW with Progress Energy/Duke Energy, ending December 31, 2013. The remaining net investment of $17.9 million in the CR3 plant and $787,000 of nuclear fuel inventory was written off as an extraordinary item as of September 30, 2013. GRU, along with other CR3 minority owners, has designated FMPA as its agent in negotiations with Duke Energy on various matters related to the retirement of CR3. FMPA has negotiated a settlement with Duke Energy on behalf of itself and the other minority owners. The CR3 Settlement, Release, and Acquisition Agreement (settlement agreement) was agreed to and executed by all parties on September 26, 2014. The settlement agreement sets forth the terms and conditions and documents necessary to transfer all of the City’s ownership interest in CR3 to Duke Energy, pending regulatory approval from the NRC. One of the provisions of the settlement agreement would require the minority owners to transfer their ownership interests in CR3 back to Duke Energy along with their decommissioning trust funds. In return, the minority owners would receive certain cash settlements and Duke Energy would agree to be responsible for all costs and liabilities relating to CR3 including costs of decommissioning. CR3 operation and maintenance costs, which represent GRU’s share of the expenses attributable to the operation of CR3, were discontinued as of October 1, 2013, and are no longer obligated to be paid in the future per the settlement agreement. It is anticipated that final NRC approval will be obtained by the end of calendar year 2015. GRU’s cash settlement is expected to be approximately $10 million. The cost and related accumulated depreciation of proprietary fund assets are removed from the accounts upon disposal or retirement, with any resulting gain or loss recognized as nonoperating income or expense. The associated cost of removal, net of salvage, is charged to accumulated depreciation as incurred. The costs of capital assets for GRU include material, labor, vehicle and equipment usage, related overhead items, capitalized interest, and certain administrative and general expenses. When units of depreciable property are retired, the original cost and removal cost, less salvage, are charged to accumulated depreciation. Major outlays for capital assets and improvements are capitalized as projects are constructed. An allowance for interest on borrowed funds used during construction of $757,000 is included in construction in progress for the Utility Fund and as a corresponding reduction in interest expense. It is computed by applying the effective interest rate on the funds borrowed to finance the projects to the monthly balance of projects under construction. The effective interest rate was approximately 4.07% for fiscal year 2014. For assets constructed with governmental fund resources, interest during construction is not capitalized. (H) 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 statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Losses resulting from the refunding of bonds are deferred and amortized over the remaining life of the old debt or the life of the new debt, whichever is shorter. Historically, in the government-wide and proprietary fund statements, the City accounted for debt issuance costs as assets. Pursuant to GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City was required to expense these costs in the year in which the costs were incurred and to restate beginning balances to reflect the retroactive application of this statement. GRU elected to follow GASB Statement No. 62, paragraphs 476-500, Regulated Operations, and recorded debt issuance costs as regulatory assets as of September 30, 2014. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs are reported as debt service expenditures.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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(I) Futures and Options Contracts, Derivatives and Deferred Charges/Credits GRU conducts a risk management program with the intent of reducing the impact of fuel price spikes for its customers. The program utilizes futures and options contracts that are traded on the New York Mercantile Exchange (NYMEX) so that prices may be fixed or reduced for given volumes of gas that the utility projects to consume during a given production month. This program is based on feedback and direction from GRU’s Risk Oversight Committee, consultation and recommendations from reputable risk management sources, and close monitoring of the market.
(J) Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense) until that future time.
(K) Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net assets that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. (L) Costs Recoverable in Future Years GRU has recorded the Power Purchase Agreement (PPA) with the Gainesville Renewable Energy Center (GREC) as a capital lease. Activity related to this lease generates a non-cash flow related to depreciation expense which is recorded as costs recoverable in future years. These net deferred costs recoverable in future years represent the amount by which depreciation exceeds principal repayment on the capital lease obligation of $13.7 million for the period ended September 30, 2014. (M) Contributions in Aid of Construction GRU recognizes capital contributions to the electric and gas systems as revenues which are subsequently expensed in the same period for capital contributions that will not be recovered in rates in accordance with GASB Statement No. 62 – Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. GRU recognizes capital contributions to the water, wastewater, and GRUCom systems as revenues in the periods received. Depreciation on these assets is recorded on a straight-line basis over the lives of the assets. (N) Hedging Derivative Instruments GRU records fuel and financial related derivative instruments in accordance with GASB Statement No. 53, Accounting and Reporting for Financial and Derivative Instruments. All effective derivative instruments are included in the Statement of Net Position as either an asset or liability measured at fair market value. All ineffective derivative instruments are recorded as a regulatory asset. Changes in the fair value of the hedging derivative instruments during the year are recorded as either deferred outflows or deferred inflows and are recognized in the period in which the derivative is settled. The settlement of fuel and financial related hedging derivative instruments are included as a part of fuel costs and interest expense, respectively, in the Statements of Revenues, Expenses and Changes in Net Position and Statement of Activities. (O) Compensated Absences The City’s policy is to allow limited vesting of employee vacation and sick pay. The limitation of vacation time is governed by the period of employment and is determinable. Unused sick leave may be added to an employee’s length of service at the time of retirement for the purpose of computing retirement benefits or, in some cases, received partially in cash upon election at retirement. The resulting liability is not determinable in advance,
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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however. All vacation pay and applicable sick leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. For governmental activities, these liabilities are generally liquidated by the General Fund. (P) Risk Management The City is exposed to various risks of loss related to theft of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters. The City maintains a General Insurance Fund (an Internal Service Fund) to account for some of its uninsured risk of loss. Under the current program, the City is self-insured for workers’ compensation, auto, and general liability. Third-party coverage is currently maintained for workers’ compensation claims in excess of $350,000. Settlements have not exceeded insurance coverage for each of the last three years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs), and are shown at current dollar value. All funds other than the Utility Fund participate in the general insurance program. Risk management/ insurance related activities of the Utility fund are accounted for within the Utility Fund. The Utility Fund purchases plant and machinery insurance from a commercial carrier. There have been no significant reductions in insurance coverage from that in the prior year and settlements have not exceeded insurance coverage for the past three fiscal years. In addition, an actuarially computed liability of $3,337,000 is recorded in the Utility Fund as a fully amortized deferred credit. The present value calculation assumes a rate of return of 4.5% with a confidence level of 75%. All claims for fiscal year 2014 were paid from current year’s revenues. Changes in the Utility Fund’s claims liability for the last two years are as follows:
BEGINNING OF END OF FISCAL YEAR FISCAL YEAR LIABILITY INCURRED PAYMENTS LIABILITY 2013-2014 $3,337,000 $1,724,682 $1,724,682 $3,337,000 2012-2013 3,337,000 1,487,246 1,487,246 3,337,000 There is a claims liability of $6,854,000 included in the General Insurance Fund as the result of actuarial estimates. Changes in the General Insurance Fund’s claims liability were:
BEGINNING OF END OF FISCAL YEAR FISCAL YEAR LIABILITY INCURRED PAYMENTS LIABILITY 2013-2014 $6,854,000 $2,364,187 $2,364,187 $6,854,000 2012-2013 6,854,000 2,758,488 2,758,488 6,854,000 The City is also self-insured for its Employee Health and Accident Benefit Plan (the Plan). The Plan is accounted for in an Internal Service Fund and is externally administered, for an annually contracted amount that is based upon the volume of claims processed. Contributions for City employees and their dependents are shared by the City and the employee. Administrative fees are paid primarily out of this fund. Stop-loss insurance is maintained for this program at $250,000 per individual. No claims have exceeded insurance coverage in the last three years.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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Changes in claims liability for the last two years are as follows: BEGINNING OF END OF FISCAL YEAR FISCAL YEAR LIABILITY INCURRED PAYMENTS LIABILITY 2013-2014 $1,363,358 $22,466,739 $22,519,426 $1,310,671 2012-2013 1,304,271 20,657,770 20,598,683 1,363,358 These claims liability amounts are all considered to be due within one year and are classified as current liabilities in the accompanying financial statements. (Q) Interfund Activity During the course of normal operations, the City has various nonreciprocal interfund activities. Following is a summary of the accounting treatment applied to such interfund transactions: Reimbursement Transactions Reimbursements from one fund to another are recorded as expenditures or expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. Transfers Interfund transfers affect the results of operations in the affected funds. An example is the payment to the General Fund from the Utility Fund. (R) Property Taxes Ad valorem property tax revenue is recognized as revenue in the fiscal year for which taxes are levied, measurable and available. Only property taxes collected within 60 days after year end are recognized as revenue. The total millage levy is assessed at 4.5780 mills. Taxes are levied and collected according to Florida State Statutes under the following calendar: Lien Date January 1 Levy Date October 1 Due Date November 1 Delinquency Date April 1 The County Tax Collector bills and collects ad valorem taxes for the City. State Statutes provide for tax discounts for installment prepayments or full payments before certain dates. Installment prepayment dates and discounts of each installment (one-fourth of estimated taxes) are: June 30 - 6%, September 30 - 4.5%, December 31 - 3% and March 31 - 0%. Full payment dates and discounts are: November 30 - 4%, December 31 - 3%, January 31 - 2%, February 28 - 1% and March 31 - 0%. The Tax Collector remits current taxes collected to the City several times a month during the first two months of the collection period. Thereafter, remittances are made to the City on a monthly basis. (S) Revenue Recognition Revenue is recorded as earned. GRU accrues for services rendered but unbilled, which amounted to approximately $16.1 million for fiscal year 2014. Fuel and purchased gas adjustment levelization revenue is recognized as expenses are incurred. Amounts charged to customers for fuel are based on estimated costs. The amount charged in the fuel adjustment is adjusted and approved by the City Commission as deemed necessary. If the amount recovered through billings exceeds actual fuel expenses, GRU records the excess billings as a liability. If the amount recovered through billings is less than actual fuel expenses, GRU records the excess fuel expense as a reduction of the liability or as an asset. Electric and natural gas customers are billed a monthly fuel and purchased gas adjustment charge based on a number of factors including fuel and fuel related costs. GRU establishes this fuel and purchased gas adjustment charge based on ordinances approved by the City Commission. A fuel and purchased gas adjustment levelization account is
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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utilized to stabilize the monthly impact of the fuel and purchased gas adjustment charge included in customer billings. The following table represents total revenues and expenses associated with the fuel and purchased gas adjustment and the subsequent impact on the fuel and purchased gas levelization balance as of September 30, 2014:
Fuel Purchased Gas Adjustment Adjustment Total
Revenues 136,495,288$ 10,245,052$ 146,740,340$ Expenses (141,632,520) (10,550,428) (152,182,948) To (From) Levelization Account (5,137,232)$ (305,376)$ (5,442,608)$
Levelization Acct Beginning Balance 20,435,627$ 970,869$ 21,406,496$ To (From) Levelization Account (5,137,232) (305,376) (5,442,608) Levelization Acct Ending Balance 15,298,395$ 665,493$ 15,963,888$
(T) Budgetary Information
The City has elected to report budgetary comparisons as required supplementary information (RSI). Please refer to the accompanying notes to the RSI for the City’s budgetary information. (U) Statement of Cash Flows For purposes of the Statement of Cash Flows, cash equivalents are defined as all liquid investments with an original maturity of three months or less. These include cash on hand, bank demand accounts, and overnight repurchase agreements. (V) Enterprise Activities For its enterprise activities, the City applies all applicable GASB pronouncements. In accordance with the Utilities System Revenue Bond Resolution as Supplemented and Amended (Resolution), utility rates are designed to cover operating and maintenance expense, debt service, utility plant improvement fund contributions and other revenue requirements, which exclude depreciation expense and other noncash expense items. This method of rate setting results in costs being included in the determination of rates in different periods than when these costs are recognized for financial statement purposes. The effects of these differences are recognized in the determination of operating income in the period that they occur, in accordance with the Utility’s accounting policies. The Utility has adopted the uniform system of accounts prescribed by the Federal Energy Regulatory Commission (FERC) and substantially all provisions of the National Association of Regulatory Utility Commissioners (NARUC). Rates for the Utility Fund are approved annually by the City Commission. (W) Rates and Regulation GRU is regulated by the City Commission of the City of Gainesville, Florida. GRU’s rates are established in accordance with the Resolution. The Resolution requires that rates are set to recover operation and maintenance expenses, debt service, utility plant improvement fund contributions, and costs for any other lawful purpose such as the general fund transfer to the City. Each year during the budget process, and at any other time deemed necessary, the City Commission approves rate changes and other changes to GRU’s system charges. GRU’s cost of fuel and purchased power for the electric and natural gas systems is passed directly through to its customers through the Fuel and Purchased Gas Adjustments. The Florida Public Service Commission (PSC) does not regulate rate levels in any of GRU’s utility systems. They do, however, have jurisdiction over rate structure for the electric system.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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GRU prepares its financial statements in accordance with GASB No. 62, paragraphs 476-500, Regulated Operations, and records various regulatory assets and liabilities. For a government to report under GASB No. 62, its rates must be designed to recover its costs of providing services, and the Utility must be able to collect those rates from customers. If it were determined, whether due to competition or regulatory action, that these standards no longer applied, GRU could be required to write off its regulatory assets and liabilities. Management believes that GRU currently meets the criteria for continued application of GASB No. 62, but will continue to evaluate significant changes in the regulatory and competitive environment to assess continuing applicability of the criteria. (X) Fund Balance Reporting
As prescribed by GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the fund can be spent. As of September 30, 2014, fund balances for governmental funds are comprised of the following: Nonspendable Fund Balance - includes amounts that are (a) not in spendable form, or (b) legally or
contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories, prepaid amounts and long-term note receivables.
Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated
by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of the resource provider.
Committed Fund Balance – includes amounts that can only be used for the specific purposes determined
by a formal action of the City’s highest level of decision-making authority, an ordinance adopted by the City Commission. Commitments may be changed or lifted only by the City Commission taking the same formal action that imposed the constraint originally.
Assigned Fund Balance – comprised of amounts intended to be used by the City for specific purposes
that are neither restricted nor committed. Intent is expressed by a body (for example a budget or finance committee) or official to whom the City’s Commission has delegated the authority to assign amounts to be used for specific purposes. The City Commission has delegated such authority to the City Manager.
Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts
not contained in the other classifications. Unassigned amounts are technically available for any purpose. Unassigned Fund Balance also includes the negative fund balance of Special Revenue Funds due to expenditures incurred exceeding the amounts restricted, committed and assigned.
In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned and unassigned.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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Fund balances for major and nonmajor governmental funds as of September 30, 2014 are classified as follows:
General Fund Nonmajor
Governmental Funds Total Nonspendable
Inventory 13,249$ -$ 13,249$ Long-term receivable 2,740,249 - 2,740,249
2,753,498 - 2,753,498
Restricted for: Cemetery Trust - 1,782,360 1,782,360 City Building Improvements - 141,856 141,856 Community Redevelopment - 12,869,699 12,869,699 Cultural Events - 103,076 103,076 Depot Avenue Project - 3,271,305 3,271,305 Economic Development - 653,586 653,586 Fire Equipment - 6,037 6,037 Fire Programs - 28,993 28,993 Fire Station - 25,000 25,000 Homeless Assistance - 1,624,492 1,624,492 Housing & Community Development - 1,528,320 1,528,320 Land Acquisitions - 251,348 251,348 Neighborhood Improvements - 110,826 110,826 Other Purposes - 1,574,942 1,574,942 Parking Improvements - 18,189 18,189 Police Equipment - 170,466 170,466 Police Mentoring Programs - 191,911 191,911 Police Services-Other - 1,420,749 1,420,749 Recreation Equipment - 152,732 152,732 Recreation Facilities - 1,868,005 1,868,005 Recreation Programs - 1,066,734 1,066,734 Road Improvements - 9,878,050 9,878,050 Sidewalks/Pedestrian & Bike Paths - 738,375 738,375 Streetscapes - 534,019 534,019 Tourist Development - 245,241 245,241 Traffic Signals - 2,627,178 2,627,178 Transportation Improvements - 3,098,453 3,098,453
- 45,981,942 45,981,942
Committed for: Cultural Events - 65,062 65,062 Homeless Assistance - 572,852 572,852 Housing & Community Development - 71,201 71,201 Infrastructure Improvements - 649,974 649,974 Police Services-Other - 2,243 2,243
- 1,361,332 1,361,332
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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Fund balances for major and nonmajor governmental funds as of September 30, 2014 are classified as follows (Continued)
General Fund Nonmajor
Governmental Funds Total
Assigned for: City Building Improvements 7,202 713,223 720,425 Community Redevelopment 37,207 198,218 235,425 Contract Issues 411,518 - 411,518 Debt Service Principal & Interest - 608,922 608,922 Depot Avenue Project - 978,983 978,983 Economic Development - 99,925 99,925 Fire Programs 26,588 300,036 326,624 FY15 Budget 884,024 - 884,024 Homeless Assistance 15,000 - 15,000 Housing & Community Development - 699,708 699,708 Information Technologies - 747,206 747,206 Land Acquisitions - 1,474,483 1,474,483 Neighborhood Improvements 6,000 16,271 22,271 Other Purposes 77,395 8,475 85,870 Parking Improvements 837 103,180 104,017 Police Equipment 21,827 32,117 53,944 Recreation Facilities - 331,319 331,319 Road Improvements - 2,309,535 2,309,535 Sidewalks/Pedestrian & Bike Paths - 198,800 198,800 Traffic Signals - 622,762 622,762 Transportation Improvements 6,500 188,858 195,358
1,494,098 9,632,021 11,126,119
Unassigned 14,520,395 (2,121,436) 12,398,959
Total 18,767,991$ 54,853,859$ 73,621,850$
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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Encumbrances for major and nonmajor governmental funds as of September 30, 2014 are clas sified as follows :
General Fund
Nonmajor Governmental
Funds Total City Buildings 7,202$ 27,828$ 35,030$ Community Redevolopment 29,109 73,902 103,011 Cultural Events - 105,713 105,713 Depot Avenue Project - 5,599,812 5,599,812 Fire Programs 1,588 7,500 9,088 Homeles s Ass is tance - 297,570 297,570 Hous ing & Community Development - 312,381 312,381 Information Technologies - 386,141 386,141 Other 41,395 - 41,395 Parking Improvements 837 - 837 Police Equipment - 5,697 5,697 Police Programs 21,827 13,500 35,327 Public Facilities - 85,238 85,238 Recreation Equipment - 6,622 6,622 Recreation Facilities - 144,167 144,167 Streets capes - 11,998 11,998 Traffic Signals - 632,272 632,272 Transportation Improvements 6,500 1,748,799 1,755,299
108,458$ 9,459,140$ 9,567,598$
Restricted Net Position In the accompanying government-wide and proprietary funds’ statements of net position, restricted net position is subject to restrictions beyond the City’s control. The restriction is either externally imposed (for instance, by creditors, grantors, contributors, or laws and regulations of other governments) or is imposed by law through constitutional provisions or enabling legislation. The composition of net position “restricted for other purposes”, based on third party external restrictions, at September 30, 2014 is: Business-type activities
Capital Surcharge 133,072$ Regional Transit Capital Acquisition Reserve 468,600
Total 601,672$
The government-wide statement of net position reports $103,433,504 of restricted net position, of which $38,661,068 is restricted by enabling legislation. Reserve Policy During Fiscal Year 2014, the City Commission amended the General Fund Reserve Policy which was originally adopted during Fiscal Year 2005 to ensure General Government’s orderly provision of services to its citizens, availability of adequate working capital, plan for contingencies, and retain the City’s good standing with the rating agencies and the credit markets.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
38
For each fiscal year, the unassigned Fund Balance of the General Fund will be at least 10% of the Proposed General Fund Revenue Budget (excluding one-time appropriations from fund balance). This balance is to provide for the following: Budget fluctuations Unanticipated emergencies (e.g. natural disasters, public safety emergencies, capital emergencies, etc.) Any other financial uncertainties The General Fund unassigned fund balance will not be used to solve recurring revenue shortfalls. That portion of the General Fund unassigned fund balance that exceeds the minimum required level may be appropriated as needed and expended. No amount of the minimum required level of the General Fund unassigned fund balance may be expended unless it meets the purposes stated above and until appropriated by the City Commission, except as provided below for anticipated emergencies. In those unanticipated emergency situations which demand immediate government action in the interest of public safety and welfare, the City Manager is authorized by the City Commission to spend up to a maximum of 20% of the minimum required level of General Fund unassigned fund balance in accordance with procedures provided in the City of Gainesville Purchasing Policies. A financial accounting related to such emergency expenditures will be submitted to the City Commission by the City Manager as expeditiously as possible after the end of the emergency. During the budget process, the required level of General Fund unassigned fund balance shall be calculated by the Budget and Finance Department based on the Proposed General Fund Revenue Budget. The additional amount required each year shall be included as a line item appropriation in the General Fund Uses Budget. Upon completion of the audited financial statements, the Finance Director will review the final year-end results. If the General Fund unassigned fund balance falls below the required minimum level, the shortfall, if less than five percent, will be budgeted in its entirety in the succeeding budget year. In the case of an event that creates a differential between the required General Fund unassigned fund balance amount and current available funds of equal to, or more than five percent, a funding plan will be developed to meet the requirements of the General Fund Reserve Policy within three years of the event. It is the policy of the City of Gainesville that any excess General Fund unassigned fund balance remaining after meeting financial reserve requirements may be appropriated to finance any one-time expenses, as determined by the City Commission. At least every five years, a review of this reserve policy will be completed by the City Manager or designee, and recommendations for changes, if appropriate, will be submitted to the City Commission. (Y) Future Accounting Pronouncements The Governmental Accounting Standards Board has issued statements that will become effective in subsequent fiscal years. The statements address:
Accounting and financial reporting for pensions; Mergers, acquisitions and transfers of operations; and Fair value measurement and application.
The City is currently evaluating the effects that these statements will have on its financial statements for subsequent fiscal years.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
39
NOTE 2 - RETIREMENT PLANS The City sponsors and administers two single-employer retirement plans and a single-employer disability plan, which are accounted for in separate Pension Trust Funds in the fiduciary category herein. The Employees’ Pension Plan (Employees Plan) The Employees’ Disability Plan (Disability Plan) The Consolidated Police Officers’ and Firefighters’ Retirement Plan (Consolidated Plan) (A) Defined Benefit Plans Employees’ Plan: Plan Description. The Employees’ Plan is a contributory defined benefit single-employer pension plan that covers all permanent employees of the City, except certain personnel who elected to participate in the Defined Contribution Plan and who were grandfathered into that plan, and police officers and firefighters who participate in the Consolidated Plan. Benefits and refunds of the defined benefit pension plan are recognized when due and payable in accordance with the terms of the plan. The costs of administering the plan, like other plan costs, are captured within the plan itself and financed through contribution and investment income, as appropriate. The City of Gainesville issues a publicly available financial report that includes financial statements and required supplementary information for the Employees’ Plan. That report may be obtained by writing to City of Gainesville, Finance Department, P.O. Box 490, Gainesville, Florida 32627 or by calling (352) 334-5054. Contribution Requirements. The contribution requirements of plan members and the City are established and may be amended by City Ordinance approved by the City Commission. Plan members are required to contribute 5% of their annual covered salary. The City is required to contribute at an actuarially determined rate; the rate for fiscal year 2014 for retirement and death benefits was 14.56% of covered payroll. This rate was influenced by the issuance of the Taxable Pension Obligation Bonds, Series 2003A. The proceeds from this issue were utilized to retire the unfunded actuarial accrued liability at that time in the Employees’ Plan. Administrative costs are financed through investment earnings. Net Pension Liability. The components of the net pension liability at September 30, 2014 were as follows:
Components of Net Pension Liability Total pension liability 436,067,871$ Plan fiduciary net position (347,480,565) City's net pension liability 88,587,306$
Plan fiduciary net position as a percentage of the total pension liability 79.68%
Significant Actuarial Assumptions. The total pension liability as of September 30, 2014 was determined based on a roll-forward of entry age normal liabilities from the October 1, 2013 actuarial valuation to the pension plan’s fiscal year end of September 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement.
Actuarial Assumptions Inflation 3.75% Salary Increases 7.00% to 3.75% Investment Rate of Return 8.40%, net of pension investment expenses
Mortality Rate:
Mortality rates were based on the RP-2000 Table.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
40
Discount Rate: The discount rate used to measure the total pension liability was 8.40%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the actuarially determined contribution rates less the member contributions. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on the pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability, in accordance with the method prescribed by GASB Statement No. 67. We believe this assumption is reasonable for the purposes of the measurements required by the Statement. In the event that benefit payments are not covered by the Plan’s fiduciary net position, a municipal bond rate of 3.51% would be used to discount the benefit payments not covered by the Plan’s fiduciary net position. The 3.51% rate equals the S&P Municipal Bond 20-Year High Grade Rate Index at September 30, 2014.
Long-Term Expected Rate of Return: The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These estimates are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation are summarized in the following table:
Real Risk Total Free Risk Expected Policy Policy
Inflation Return Premium Return Allocation Return Domestic Equity 3.00% 2.00% 4.50% 9.50% 47.00% 4.47% Intnl Equity 3.00% 2.00% 5.50% 10.50% 28.00% 2.94% Domestic Bonds 3.00% 2.00% 0.50% 5.50% 8.00% 0.44% Intnl Bonds 3.00% 2.00% 1.50% 6.50% 0.00% 0.00% Real Estate 3.00% 2.00% 2.50% 7.50% 17.00% 1.28% US Treasuries 3.00% 2.00% -2.00% 3.00% 0.00% 0.00% Cash 3.00% 0.00% -1.00% 2.00% 0.00% 0.00% Total 100.00% 9.12%
Development of Long Term Discount Rate for General Employees' Pension Plan
Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following presents the net pension liability, calculated using the discount rate of 8.4%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (7.4%) or 1 percentage-point higher (9.4%%) than the current rate:
Current 1% Decrease Discount 1% Increase
(7.4%) Rate (8.4%) (9.4%) Net pension liability 134,888,950$ 88,587,306$ 49,367,707$
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
41
Annual Pension Cost and Net Pension Obligation. The City’s annual pension cost and net pension obligation to the Employees’ Plan for the current year were as follows:
Annual required contribution 12,230,751$ Interest on net pension obligation (2,528,314) Adjustment to annual required contribution 2,766,069 Annual Pension Cost 12,468,506$ Contributions Made 11,519,431 Change in net pension obligation 949,075$ Net Pension Obligation (Asset), beginning of year (28,360,440) Net Pension Obligation(Asset), end of year (27,411,365)$
The annual required contribution for the current year was determined as part of the September 30, 2012 actuarial valuation using the Individual Entry Age Actuarial Cost method. The actuarial assumptions included (a) 8.50% investment rate of return (net of administrative expenses) and (b) projected salary increases of 3.75%-7% per year, based on years of service. Both (a) and (b) included an inflation component of 3.75%. The assumptions include post-retirement benefit increases for those retirees who meet eligibility criteria. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. Any unfunded actuarial accrued liability is traditionally amortized as a level percentage of projected payroll on a closed basis. The amortization period at September 30, 2014 was 30 years.
Fiscal Annual Percentage Net Year Pension of APC Pension
Ending Cost (APC) Contribution Contributed Obligation (Asset) 09/30/12 9,454,422$ 8,684,927$ 91.9% (28,921,540)$ 09/30/13 10,767,434 10,206,334 94.8% (28,360,440) 09/30/14 12,470,214 11,521,139 92.4% (27,411,365)
Funded Status.
Actuarial Actuarial Accrued UAAL as %
Actuarial Value of Liability (AAL) Unfunded Funded Covered of covered Valuation Assets Entry Age (UAAL) Ratio Payroll payroll
Date (a) (b) (b) - (a) (a/b) ( c ) (b-a)/c 9/30/14 295,606,000$ 424,756,000$ 129,150,000$ 69.59% 81,654,532$ 158.17%
Disability Plan: Plan Description. The Disability Plan is a contributory defined benefit single-employer plan that covers all permanent employees of the City, except police officers and firefighters whose disability plan is incorporated in the Consolidated Plan. The Disability Plan’s basis of accounting is accrual; the policy is to recognize costs of the plan under accrual. Benefits are recognized when due and payable in accordance with the terms of the plan. The costs of administering the plan, like other plan costs, are captured within the plan itself and financed through contribution and investment income, as appropriate. The City of Gainesville issues a publicly available financial report that includes financial statements and required supplementary information for the Disability Plan. That report may be obtained by writing to City of Gainesville, Finance Department, P.O. Box 490, Gainesville, Florida 32627 or by calling (352) 334-5054. See Note16, Subsequent Events for discussion of significant modifications to the Plan after September 30, 2014.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
42
Contribution Requirements. The contribution requirements of the City are established and may be amended by City Ordinance approved by the City Commission. The City is required to contribute at an actuarially determined rate; the rate for fiscal year 2014 for disability benefits was 0.34% of covered payroll. Plan members do not contribute to this Plan. Administrative costs are financed through investment earnings. Net Pension Liability. The components of the net pension liability at September 30, 2014 were as follows:
Components of Net Pens ion Liability Total pens ion liability 2,455,848$ Plan fiduciary net position (8,441,405) City's net pension liability (ass et) (5,985,557)$
Plan fiduciary net position as a percentage of the total pension liability 343.73%
Significant Actuarial Assumptions. The total pension liability as of September 30, 2014 was determined based on a roll-forward of aggregate liabilities from the October 1, 2013 actuarial valuation to the pension plan’s fiscal year end of September 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement.
Actuarial As sumptions Inflation 3.75% Salary Increas es for employees age less than 30 7.00% to 3.75% Inves tment Rate of Return 8.40%, net of pension inves tment expenses
Mortality Rate:
Mortality rates were based on the RP-2000 Table.
Discount Rate: The discount rate used to measure the total pension liability was 8.40%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on the pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability, in accordance with the method prescribed by GASB Statement No. 67. We believe this assumption is reasonable for the purposes of the measurements required by the Statement. In the event that benefit payments are not covered by the Plan’s fiduciary net position, a municipal bond rate of 3.51% would be used to discount the benefit payments not covered by the Plan’s fiduciary net position. The 3.51% rate equals the S&P Municipal Bond 20-Year High Grade Rate Index at September 30, 2014.
Long-Term Expected Rate of Return: The long-term expected rate of return on pension plan investments was deteremined as described for the General Employees’ Pension Plan.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
43
Sensitivity of the Net Pension Liability to Changes in the Discount Rate:
The following presents the net pension liability, calculated using the discount rate of 8.4%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (7.4%) or 1 percentage-point higher (9.4%) than the current rate:
Current
1% Decrease Discount 1% Increase (7.4%) Rate (8.4%) (9.4%)
Net pension liability (asset) (5,888,072)$ (5,985,557)$ (6,119,226)$
Annual Pension Cost and Net Pension Obligation. The City’s annual pension cost and net pension obligation to the Disability Plan for the current year were as follows:
Annual required contribution -$ Interest on net pension obligation (6,217) Adjustment to annual required contribution 6,806 Annual Pension Cost 589$ Contributions Made 269,682 Change in net pension obligation (269,093)$ Net Pension Obligation (Asset), beginning of year (73,138) Net Pension Obligation(Asset), end of year (342,231)$
Annual Contribution: The annual contribution for the current year was determined as part of the September 30, 2012 actuarial valuation using the individual entry age actuarial cost method. The actuarial assumptions included (a) 8.50% investment rate of return (net of administrative expenses) and (b) projected salary increase of between 3.75% and 7% per year, based on years of service. Both (a) and (b) included an inflation component of 3.75%. The actuarial value of assets was set at market value. Any unfunded actuarial accrued liability is traditionally amortized as a level percentage of projected payroll on a closed basis. The amortization period at September 30, 2014 was 15 years.
Fiscal Annual Percentage Year Pension of APC Net Pension
Ending Cost (APC) Contribution Contributed Obligation (Asset) 09/30/12 288,426$ 274,696$ 95.2% (95,471)$ 09/30/13 301,257 278,924 92.6% (73,138) 09/30/14 589 269,682 45786.4% (342,231)
Funded Status.
Actuarial Actuarial Accrued UAAL as %
Actuarial Value of Liability (AAL) Unfunded Funded Covered of covered Valuation Assets Entry Age (UAAL) Ratio Payroll payroll
Date (a) (b) (b) - (a) (a/b) ( c ) (b-a)/c 09/30/14 8,441,405$ 2,455,848$ (5,985,557)$ 343.73% 81,654,532$ -7.33%
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
44
Consolidated Plan: Plan Description. The Consolidated Plan is a contributory defined benefit single-employer pension plan that covers City sworn police officers and firefighters. The Plan is established under City of Gainesville Code of Ordinances, Article 7, Chapter 2, Division 8. It complies with the provisions of Chapter 112, Part VII, Florida Statutes; Chapter 22D-1 of the Florida Administrative Code; Chapters 175 and 185, Florida Statutes; and Article X, Section 14 of the Florida Constitution, governing the establishment, operation and administration of plans. The basis of accounting for the Consolidated Plan is accrual. Benefits and refunds of the defined benefit pension plan are recognized when due and payable in accordance with the terms of the plan. The costs of administering the plan, like other plan costs, are captured within the plan itself and financed through contribution and investment income, as appropriate. The City of Gainesville issues a publicly available financial report that includes financial statements and required supplementary information for the Consolidated Plan. That report may be obtained by writing to City of Gainesville, Finance Department, P.O. Box 490, Gainesville, Florida 32627 or by calling (352) 334-5054. Contribution Requirements . The contribution requirements of plan members and the City are established and may be amended by City Ordinance approved by the City Commission in accordance with Part V11, Chapter 112, Florida Statutes. Firefighters contribute 9.0% of gross pay and police officers contribute 7.5% of gross pay. The City is required to contribute at an actuarially determined rate; the rate for fiscal year 2014 was 15.20% of covered payroll for police personnel and 17.00% for fire personnel. This rate was influenced by the issuance of the Taxable Pension Obligation Bonds, Series 2003B. In addition, State contributions, which totaled $1,259,995, are also made to the plan on behalf of the City under Chapters 175/185, Florida Statutes. These State contributions are recorded as revenue and personnel expenditures in the City’s General Fund before they are recorded as contributions in the Consolidated Pension Fund. Administrative costs are financed through investment earnings. Net Pension Liability. The components of the net pension liability at September 30, 2014 were as follows:
Components of Net Pension Liability Total pens ion liability 245,915,632$ Plan fiduciary net position (217,047,910) City's net pension liability 28,867,722$
Plan fiduciary net position as a percentage of the total pension liability 88.26%
Significant Actuarial Assumptions. The total pension liability as of September 30, 2014 was determined based on a roll-forward of entry age normal liabilities from the October 1, 2013 actuarial valuation, using the following actuarial assumptions, applied to all periods included in the measurement.
Actuarial Assumptions Inflation 3.00% Salary Increases for employees age less than 30 7.00% Salary Increases for employees age 30 to 34 6.00% Salary Increases for employees age 35 to 39 5.00% Salary Increases for employees age 40 and older 4.00% Investment Rate of Return 8.30%, net of pension investment expenses
Mortality Rate:
Mortality rates were based on the RP-2000 Combined Fully Generated Mortality Table with Blue Collar adjustment. 50% of deaths among active members are assumed to be service incurred, and 50% are assumed to be non-service incurred. Disabled mortality is based on the RP-2000 Disability Retiree Mortality Table.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
45
Other Assumptions:
The actuarial assumptions used as of September 30, 2014 were based on the assumptions approved by the Board in conjunction with an experience study covering the 5 year period ending on September 30, 2010. Due to plan changes first valued in the October 1, 2012 actuarial valuation, changes to the assumed retirement rates and the valuation methodology for the assumed increase in benefit service for accumulated sick leave and accumulated vacation paid upon termination were made. Payroll growth assumptions were updated in 2012 and investments was reviewed by the Board in February of 2015 based on an asset liability study reflecting the current investment policy.
Discount Rate:
The discount rate used to measure the total pension liability was 8.3%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the actuarially determined contribution rates less the member and State contributions. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on the pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability, in accordance with the method prescribed by GASB Statement No. 67. In the event that benefit payments are not covered by the Plan’s fiduciary net position, a municipal bond rate of 3.51% would be used to discount the benefit payments not covered by the Plan’s fiduciary net position. The 3.51% rate equals the S&P Municipal Bond 20- Year High Grade Rate Index at September 30, 2014.
Long-Term Expected Rate of Return: The long-term expected rate of return on pension plan investments was determined over a 30 year time horizon based on the allocation of assets as shown in the current investment policy using the expected geometric return, expected arithmetic return and the standard deviation arithmetic return. The analysis represented investment rates of return net of investment expenses. The return is expected to be above 8.75% for 60% of market simulations and below 8.75% for 40% of the market simulations. The current discount rate meets the requirements of GASB Statement No. 67. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation are summarized in the following table:
Total 30-Year Expected Policy Policy
Inflation Return Allocation Return US Large Cap 3.01% 11.23% 35.00% 3.93% US Small Cap 3.01% 13.99% 15.00% 2.10% Global Equity ex US 3.01% 11.58% 10.00% 1.16% Private Equity 3.01% 16.03% 10.00% 1.60% US Govt Credit 3.01% 5.34% 7.50% 0.40% NCREIF 3.01% 8.81% 7.50% 0.66% Hedge Funds 3.01% 7.93% 15.00% 1.19% Total 100.00% 11.04%
Development of Long Term Discount Rate - Arithmetic
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
46
Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following presents the net pension liability, calculated using the discount rate of 8.3%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (7.3%) or 1 percentage-point higher (9.3%) than the current rate:
Current 1% Decrease Discount 1% Increase
(7.3%) Rate (8.3%) (9.3%) Net pension liability 56,835,618$ 28,867,722$ 5,548,250$
Annual Pension Cost and Net Pension Obligation. The City’s annual pension cost and net pension obligation to the Consolidated Plan for the current year were as follows:
Annual required contribution 4,880,970$ Interest on net pension obligation (2,559,824) Adjustment to annual required contribution 6,844,139 Annual Pension Cost 9,165,285$ Contributions Made 5,115,015 Change in net pension obligation 4,050,270$ Net Pension Obligation (Asset), beginning of year (27,860,273) Net Pension Obligation(Asset), end of year (23,810,003)$
The annual required contribution for the current year was determined as part of the September 30, 2012 actuarial valuation using the Entry Age Normal Cost method. The actuarial assumptions included (a) 8.5% investment rate of return (net of administrative expenses) and (b) projected salary increases of 4%-7% per year, based on years of service. Both (a) and (b) included an inflation component of 3.75%. The assumptions include post-retirement benefit increases for those retirees meeting eligibility criteria. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. Any unfunded actuarial accrued liability is traditionally amortized as a level percentage of projected payroll on a closed basis. The amortization period at September 30, 2014 was 30 years.
Fiscal Annual Percentage Net Year Pension of APC Pension
Ending Cost (APC) Contribution Contributed Obligation (Asset) 09/30/12 7,109,238$ 4,138,993$ 58.2% (31,561,396)$ 09/30/13 8,630,421 4,929,298 57.1% (27,860,273) 09/30/14 9,165,285 5,115,015 55.8% (23,810,003)
Benefits and refunds of the defined benefit pension plans are recognized when due and payable in accordance with the terms of the plan. Costs of administering the pension plans are financed through contributions and/or investment income, as appropriate. Funded Status.
Actuarial Actuarial Accrued UAAL as %
Actuarial Value of Liability (AAL) Unfunded Funded Covered of covered Valuation Assets Entry Age (UAAL) Ratio Payroll payroll
Date (a) (b) (b) - (a) (a/b) ( c ) (b-a)/c 10/01/13 194,732,675$ 231,007,337$ 36,274,662$ 84.30% 23,668,480$ 153.26%
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
47
(B) Defined Contribution Pension Plan Plan Description. As noted above, the Defined Contribution Pension Plan is open to certain existing City professional and managerial employees. It is no longer available to newly hired professional and managerial employees. The Commission of the City of Gainesville adopted this plan and related amendments through a City Ordinance. The plan is qualified under the provisions of Section 401A of the Internal Revenue Code. Assets of the Defined Contribution Plan are self-directed, and investment results are reported to employees quarterly. The City does not have fiduciary accountability for the Defined Contribution Pension Plan and, accordingly, the Plan is not reported in the accompanying financial statements. Funding Policy. The contribution requirements of plan members and the City are established and may be amended by City Ordinance approved by the City Commission in accordance with applicable State Statute. Plan members are required to contribute 5.0% of their annual covered salary. The City is required to contribute 10% of covered payroll. During fiscal year 2014, plan members contributed $150,262 and the City contributed $233,466. NOTE 3 – OTHER POST-EMPLOYMENT BENEFITS PLAN Plan Description. By ordinance enacted by the City Commission, the City has established the Retiree Health Care Plan (RHCP), providing for the payment of a portion of the health care insurance premiums for eligible retired employees. The RHCP is a single-employer defined benefit healthcare plan administered by the City which provides medical insurance benefits to eligible retirees and their beneficiaries. The City of Gainesville issues a publicly available financial report that includes financial statements and required supplementary information for the RHCP. That report may be obtained by writing to City of Gainesville, Finance Department, P.O. Box 490, Gainesville, Florida 32627 or by calling (352) 334-5054. The RHCP has 1,024 retirees, spouses and dependents receiving benefits and has a total of 1,717 active participants. Of that total, 1,335 are not yet eligible to receive benefits. Ordinance 991457 of the City of Gainesville assigned the authority to establish and amend benefit provisions to the City Commission. Annual OPEB Cost and Net OPEB Obligation. For fiscal year 2014, the City’s annual OPEB cost for the RHCP was $3,440,402. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the fiscal year ended September 30, 2014 were as follows:
Annual required contribution 3,300,708$ Interest on net OPEB obligation (1,474,228) Adjustment to annual required contribution 1,613,922 Annual OPEB cost 3,440,402$ Contributions made 2,746,676 Change in net OPEB obligation (asset) 693,726$ Net OPEB obligation (asset), beginning of year (18,976,279) Net OPEB obligation(asset), end of year (18,282,553)$
Trend Information
Year Ended Annual OPEB
Cost Actual Employer
Contribution Percentage Contributed
Net Ending OPEB Obligation (Asset)
09/30/12 3,292,685$ 2,909,942$ 88.38% (19,266,231)$ 09/30/13 3,318,685 3,028,733 91.26% (18,976,279) 09/30/14 3,440,342 2,746,676 79.84% (18,282,553)
Fiscal year 2005 was the year of implementation of GASB 43 and 45 and the City elected to implement prospectively. The City’s contributions include $2,228,139, $2,490,213 and $2,396,511 in payments made by the
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
48
City for the implicit rate subsidy included in the blended rate premiums for active employees which fund the implicit rate subsidy discount provided to the retirees for fiscal years 2014, 2013, and 2012, respectively. Funding Policy. In 1995, the City instituted a cost sharing agreement with retired employees for individual coverage only, based on a formula taking into account age at the time the benefit is first accessed and service at time of retirement. The contribution requirements of plan members and the City are established and may be amended by the City Commission. These contributions are neither mandated nor guaranteed. The City has retained the right to unilaterally modify its payment for retiree health care benefits. Administrative costs are financed through investment earnings. RHCP members receiving benefits contribute a percentage of the monthly insurance premium. Based on this plan, the RHCP pays up to 50% of the individual premium for each insured according to the age/service formula factor of the retiree. Spouses and other dependents are eligible for coverage, but the employee is responsible for the entire cost, there is no direct RHCP subsidy. The employee contributes the premium cost each month, less the RHCP subsidy calculated as a percentage of the individual premium. The State of Florida prohibits the City from separately rating retirees and active employees. The City therefore charges both groups an equal, blended rate premium. Although both groups are charged the same blended rate premium, GAAP require the actuarial figures presented above to be calculated using age adjusted premiums approximating claim costs for retirees separate from active employees. The use of age adjusted premiums results in the addition of an implicit rate subsidy into the actuarial accrued liability. However, the City has elected to contribute to the RHCP at a rate that is based on an actuarial valuation prepared using the blended rate premium that is actually charged to the RHCP. In July 2005, the City issued $35,210,000 Taxable Other Post Employment Benefit (OPEB) bonds to retire the unfunded actuarial accrued liability then existing in the RHCP Trust Fund. This allowed the City to reduce its contribution rate. The City’s actual regular contribution was less than the annual required contribution calculated using the age-adjusted premiums instead of the blended rate premiums. The difference between the annual required calculation and the City’s actual regular contribution was due to two factors. The first is the amortization of the negative net OPEB obligation created in fiscal year 2005 by the issuance of the OPEB bonds. The other factor is that the City has elected to contribute based on the blended rate premium instead of the age-adjusted premium, described above as the implicit rate subsidy. In September 2008, the City approved Ordinance 0-08-52, terminating the existing program and trust and creating a new program and trust, effective January 1, 2009. This action changed the benefits provided to retirees, such that the City will contribute towards the premium of those who retire after August 31, 2008 under a formula that provides ten dollars per year of credited service, adjusted for age at first access of the benefit. Current retirees receive a similar benefit, however the age adjustment is modified to be set at the date the retiree first accesses the benefit or January 1, 2009, whichever is later. For current retirees that are 65 or older as of January 1, 2009, the City’s contribution towards the premium will be the greater of the amount calculated under this method or the amount provided under the existing Ordinance. The City’s contribution towards the premium will be adjusted annually at the rate of 50% of the annual percentage change in the individual premium compared to the prior year. Actuarial Methods and Assumptions. Calculations of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used 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. In the September 30, 2012, actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions used included a 8.5% investment rate of return, compounded annually, net of investment expenses. The annual healthcare cost trend rate of 6% is the ultimate rate. The select rate was 12% but was decreased to the ultimate rate in 2002. Both the rate of return and the healthcare cost trend rate include an assumed inflation rate of
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
49
3.75%. The actuarial valuation of RHCP assets was set at fair market value of investments as of the measurement date. The RCHP’s initial unfunded actuarial accrued liability (UAAL) as of 1994 is being amortized as a level percentage of projected payroll over a closed period of twenty years from 1994 and changes in the UAAL from 1994 through 2003 are amortized over the remaining portion of the twenty-year period. Future changes in the UAAL will be amortized on an open period of ten years from inception. Funded Status.
Actuarial Actuarial Accrued UAAL as %
Actuarial Value of Liability (AAL) Unfunded Funded Covered of covered Valuation Assets Entry Age (UAAL) Ratio Payroll payroll
Date (a) (b) (b) - (a) (a/b) ( c ) (b-a)/c 9/30/2014 59,867,314$ 66,343,732$ 6,476,418$ 90.24% 126,000,000$ 5.14%
The required schedule of funding progress immediately following the notes to the financial statements presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations. NOTE 4 - DEFERRED COMPENSATION PLAN The City of Gainesville offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The City has complied with the requirements of subsection (g) of IRC Section 457 and, accordingly, all assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. NOTE 5 – LONG-TERM DEBT AND CAPITAL LEASES GOVERNMENTAL ACTIVITIES: $15,892,220 Guaranteed Entitlement Revenue and Refunding Bonds, Series 1994 - 3.0-6.1%, final maturity 2024; payable solely from and secured by a lien upon and pledge of monies from the City’s Guaranteed Entitlement Funds (Intergovernmental Revenues). Current Interest Paying Bonds were paid in full August 1, 2006. For Capital Appreciation Bonds, principal is payable August 1 and February 1 beginning August 1, 2018. Interest accrues to principal and is payable upon maturity or prior redemption. $40,042,953 Taxable Pension Obligation Bonds, Series 2003A – 1.71% - 6.19%, issued March 14, 2003, final maturity October 2032, payable solely from non-ad valorem revenues. Principal payable annually on October 1, beginning 2004. Interest payable semi-annually beginning October 1, 2003. The bonds are not subject to redemption prior to maturity. $49,851,806 Taxable Pension Obligation Bonds, Series 2003B – 3.07% - 5.42%, issued March 14, 2003, final maturity October, 2033, payable solely from non-ad valorem revenues. Principal payable annually on October 1, beginning 2006. Interest payable semi-annually beginning October 1, 2003. The bonds are not subject to redemption prior to maturity. $9,805,000 Guaranteed Entitlement Refunding Bonds Series 2004 3.5%-5.5%; issued May 4, 2004, final maturity August 1, 2017; payable solely from and secured by a lien upon and pledge of monies from the City’s Guaranteed Entitlement Funds. The proceeds were used to refund $10,010,000 of the City’s Guaranteed Entitlement Revenue and Refunding Bonds, Series 1994. Principal is payable annually on August 1, beginning 2005. Interest is payable semi-annually beginning August 1, 2004. This current refunding resulted in a reduction of total debt service payments over 13 years of approximately $735,000 and an economic gain of approximately $572,000.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
50
$5,640,000 First Florida Governmental Financing Commission Loan, Series 2005 – 2.5% - 4.125%, issued March 10, 2005, final maturity July 1, 2025; payable solely from non-ad valorem revenues. Principal payable annually on July 1, beginning 2006. interest payable semi-annually beginning July 1, 2005. $35,210,000 Taxable Other Post Employment Benefit (OPEB) Obligation Bonds, Series 2005 – 4.05% -4.71%, issued July 28, 2005, final maturity October 2014, payable solely from non-ad valorem revenues. Principal payable annually on October 1, beginning 2006. Interest payable semi-annually beginning October 1, 2005. The bonds are not subject to redemption prior to maturity. $22,695,000 Capital Improvement Revenue Bonds, Series 2005 – 4.00% -4.50%, issued November 30, 2005, final maturity October 2025, payable solely from non-ad valorem revenues. Principal payable annually on October 1, beginning 2006. Interest payable semi-annually beginning April 1, 2006. The bonds are not subject to redemption prior to maturity. $1,540,000 First Florida Governmental Financing Commission Loan, Series 2007 –3.7% - 4.375%, issued April 17, 2007, final maturity July 1, 2027; payable solely from non-ad valorem revenues. Principal payable annually on July 1, beginning 2008. interest payable semi-annually beginning July 1, 2007. $11,500,000 Capital Improvement Revenue Note, 2009 (CIRN) – 5.15%, issued July 3, 2009, final maturity November 1, 2028, payable solely from non-ad valorem revenues. Principal payable annually on November 1, beginning in fiscal year 2011, interest payable semi-annually beginning November 1, 2009. This note also funded an additional $1.5 million of capital projects for which the debt and assets are reported in the Solid Waste and Stormwater enterprise funds. $3,036,907 Capital Improvement Revenue Bonds, Series 2010 – 2.00% -4.375%, issued July 13, 2010, final maturity October 2030, payable solely from non-ad valorem revenues. Principal payable annually on October 1, beginning 2011. Interest payable semi-annually beginning October 1, 2010. The bonds are not subject to redemption prior to maturity. This note also funded an additional $1,313,093 of capital improvements for which the debt and assets are reported in the Ironwood Golf Course enterprise fund. $361,856 Construction Promissory Note – Variable interest rate based on 5 Year Treasury Index plus 2.75%. In December 2009, a promissory note was entered into for construction of the CRA office building with Sunstate Federal Credit Union to be repaid from tax increment proceeds. Interest payable monthly beginning February 2010 and principal payable monthly beginning February 2011. Loan payments are amortized over a 360 month period with a balloon payment due February 2025. The interest rate was 5.99% at September 30, 2014. $6,230,000 Revenue Refunding Note Series 2011 – 2.36% fixed, issued November 1, 2011, final maturity July 1, 2022; payable solely from non-ad valorem revenues. Proceeds from the Note were used to refinance all of the First Florida Governmental Finance Commission Series 2002 Bonds along with closing costs incurred. This advance refunding resulted in a reduction of total debt service payments over 10 years of approximately $912,000 and an economic gain of approximately $705,000. $3,730,000 Revenue Note Series 2011A – 2.29% fixed issued December 21, 2011, final maturity October 1, 2021; payable solely from non-ad valorem revenues. Proceeds from the Note are to be used for partial funding of the renovation and reconstruction of the Police Department Headquarters, capital improvements and remediation improvements at Depot Park and other capital improvements. $14,715,000 Revenue Refunding Note Series 2014 – 2.4% fixed, issued February 14, 2014, final maturity October 1, 2025; payable solely from non-ad valorem revenues. Proceeds from the Note were used to refinance all of the Capital Improvement Revenue Bond Series 2005 Bonds along with closing costs incurred. This advance refunding resulted in a reduction of total debt service payments over 10 years of approximately $1,023,600 and an economic gain of approximately $893,900.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
51
BUSINESS-TYPE ACTIVITIES: $186,000,000 Utilities System Revenue Bonds, Series 1983 - 6.0%, dated August 1, 1983, final maturity October 1, 2014; payable solely from and secured by an irrevocable lien of Gainesville Regional Utilities (Utility) net revenues. Interest is payable on April 1 and October 1. Principal is payable on October 1. The bonds are subject to redemption at the option of the City as a whole or in part on any interest payment date, at a redemption price of 100% plus accrued interest to the date of redemption. $134,920,000 Utilities System Revenue Bonds, Series 1992B - 6.5%, dated March 1, 1992, final maturity October 1, 2013. The 1992B Bonds mature at various dates through October 1, 2013. Those bonds maturing on or after October 1, 2004 to October 1, 2007, amounting to $14.3 million were redeemed at the option of the City on October 1, 2002. $7,625,000 2003 Utilities System Revenue Bonds Series 2003B( Federally Taxable) – 4.4%, dated January 30, 2003, final maturity October 1, 2013. The 2003B bonds are not subject to redemption prior to maturity. $115,925,000 2003 Utilities System Revenue Bonds Series 2003C – 5.0%, dated August 20, 2003, final maturity October 1, 2013. The 2003C bonds are not subject to redemption prior to maturity. $196,950,000 2005 Utilities System Revenue Bonds Series 2005A – 4.75%-5.0%, dated November 16, 2005, mature on various dates through October 1, 2036 and were partially refunded as part of the 2012A Utilities System Revenue Bond issuance. The 2005A bonds will be subject to redemption at the option of the City on and after October 1, 2015 as a whole or in part at any time, at a redemption price of 100% of the principal amount, plus accrued interest to the date of redemption. The 2005A bonds were issued to pay a portion of the cost of acquisition and construction of certain improvements to the City’s electric, natural gas, water, wastewater and telecommunications systems and to refund the City’s Utilities System Commercial Paper Notes, Series C. In March 2007, the 2007 Series A Bonds ($139,505,000) were issued to advance-refund to the maturity dates a portion of the bonds maturing from October 1, 2030 to October 1, 2036. The proceeds related to the refunded bonds were deposited into an escrow account to refund the bonds on October 1, 2015 at 100% of par. $61,590,000 2005 Utilities System Revenue Bonds Series 2005B (Federally Taxable) – 5.14%-5.31%, dated November 16, 2005, final maturity October 1, 2021. The 2005B bonds will be subject to redemption at the option of the City, in whole or in part, on any date, at a redemption price equal to the greater of: 100% of the principal amount, plus accrued and unpaid interest to the date of redemption; or the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed discounted to the date of redemption on a semiannual basis plus 12.5 basis points. The 2005B bonds were issued to pay a portion of the cost of acquisition and construction of certain improvements to the City’s electric, natural gas, water, wastewater and telecommunications systems and to refund the City’s Utilities System Commercial Paper Notes, Series D. $55,135,000 2005 Utilities System Revenue Bonds Series 2005C – Variable interest rates based on market rates, 0.03% at September 30, 2014, dated November 16, 2005, final maturity October 1, 2026. The 2005C bonds will be subject to redemption at the option of the City at a redemption price of 100% of the principal amount, plus accrued interest to the date of redemption. The 2005C bonds were issued to refund a portion of the City’s Utilities System Revenue Bonds, 1996 Series A and created a net present value savings of over $6,700,000, with yearly cash savings ranging from approximately $370,000 to over $1,085,000. $53,305,000 2006 Utilities System Revenue Bonds Series 2006A – Variable interest rates based on market rates, 0.02% at September 30, 2014, dated July 6, 2006, final maturity October 1, 2026. The 2006A bonds will be subject to redemption at the option of the City, in whole or in part, at a redemption price equal to 100% of the principal amount plus accrued interest to the date of redemption. The 2006A Bonds were issued to pay a portion of the cost of acquisition and construction of certain improvements to the City’s electric, natural gas, water, wastewater and telecommunications systems and to refund a portion of the City’s Utilities System Revenue Bonds, 1996 Series A. The 2006A Bonds created a net present value savings of over $6,200,000, with yearly cash savings ranging from approximately $371,000 to over $890,000.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
52
$139,505,000 2007 Utilities System Revenue Bonds Series 2007A – Variable interest rates based on market rates, 0.05% at September 30, 2014, dated July 6, 2006, final maturity October 1, 2036. The 2007A bonds will be subject to redemption at the option of the City, in whole or in part, at a redemption price equal to 100% of the principal amount plus accrued interest to the date of redemption. The 2007A Bonds were issued to refund a portion of the City’s Utilities System Revenue Bonds, 2003 Series A and a portion of the City’s Utilities System Revenue Bonds, 2005 Series A. The 2007A Bonds created a net present value savings of over $8,500,000, with yearly cash savings ranging from $136,266 to $504,969. $105,000,000 Utilities System Revenue Bonds, Series 2008A (Federally Taxable) – 4.49% - 5.27%, dated February 13, 2008, final maturity October 1, 2020. The 2008A bonds are subject to redemption prior to maturity at the election of the City in whole or in part, at a redemption price equal to the greater of: 100% of the principal amount plus accrued interest to the date of redemption; or the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed discounted to the date of redemption on a semiannual basis plus 12.5 basis points. The 2008A Bonds were issued to pay costs of acquisition and construction of the City’s utilities system. $90,000,000 Utilities System Revenue Bonds Series 2008B – Variable interest rates based on market rates, 0.03% at September 30, 2014, dated February 13, 2008, final maturity October 1, 2038. The 2008B bonds are subject to redemption prior to maturity at the election of the City in whole or in part, at a redemption price of 100% of the principal amount plus accrued interest to the date of redemption. The 2008B Bonds were issued to pay costs of acquisition and construction of the City’s utilities system. $24,190,000 Utilities System Revenue Bonds Series 2009A (Federally Taxable) – 3.44% - 3.59%, dated September 16, 2009, final maturity October 1, 2015. The 2009A bonds are subject to redemption prior to maturity at the election of the City at a redemption price equal to the greater of: 100% of the principal amount plus accrued interest to the redemption date; or the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed discounted to the date of redemption on a semiannual basis plus 12.5 basis points. The 2009A bonds were issued to pay costs of acquisition and construction of the City’s utilities system. $156,900,000 Utilities System Revenue Bonds Series 2009B – Issuer Subsidy – Build America Bonds (Federally Taxable) – 3.59%-5.65%, dated September 16, 2009, final maturity October 1, 2039. The 2009B bonds will be subject to redemption prior to maturity at the election of the City at a redemption price equal to the greater of: 100% of the principal amount plus accrued interest to the redemption date; or the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed discounted to the date of redemption on a semiannual basis plus 12.5 basis points. The 2009B bonds were issued to pay costs of acquisition and construction of the City’s utilities system. $12,930,000 Utilities System Revenue Bonds Series 2010A (Federally Taxable) – 5.87%, dated November 1, 2010, final maturity October 1, 2030. The 2010A bonds are subject to redemption prior to maturity at the election of the City at a redemption price equal to the greater of: 100% of the principal amount plus accrued interest to the redemption date; or the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed discounted to the date of redemption on a semiannual basis plus 12.5 basis points.. The 2010A bonds were issued to (a) pay costs of acquisition and construction of the City’s utilities system, (b) to provide for the payment of certain capitalized interest on the Taxable 2010 Series A Bonds, and (c) to pay the costs of issuance of the Taxable 2010 Series A Bonds. $132,445,000 Utilities System Revenue Bonds Series 2010B – Issuer Subsidy – Build America Bonds (Federally Taxable) – 6.02%, dated November 1, 2010, final maturity October 1, 2040. The 2010B bonds will be subject to redemption prior to maturity at the election of the City at a redemption price equal to the greater of: 100% of the principal amount plus accrued interest to the redemption date; or the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed discounted to the date of redemption on a semiannual basis plus 12.5 basis points.. The 2010B bonds were issued to (a) pay costs of acquisition and construction of the City’s utilities system, (b) to provide for the payment of certain capitalized interest on the Taxable 2010 Series B Bonds, and (c) to pay the costs of issuance of the Taxable 2010 Series B Bonds.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
53
$16,365,000 Utilities System Revenue Bonds Series 2010C – 5.00% – 5.25%, dated November 1, 2010, final maturity October 1, 2034. The 2010C bonds are subject to redemption prior to maturity at the election of the City at a redemption price so specified. The 2010C bonds were issued to (a) refund $5,860,000 in aggregate principal amount of the 2003 Series A Bonds, and (b) to provide funds to refund $10,505,000 in aggregate principal amount of the 2008 Series A Bonds. $81,860,000 Utility System Revenue Bonds Series 2012A – 2.50% - 5.00% dated August 1, 2012 final maturity October 1, 2028. The 2012A bonds were issued to (a) provide funds to refund $1,605,000 in aggregate principal amount of the 2003 Series A Bonds, (b) to provide funds to refund $78,690,000 in aggregate principal amount of the 2005 Series A Bonds, and (c) to pay cost of issuance of the 2012 Series A Bonds. These bonds mature at various dates from October 1, 2021 to October 1, 2028. Those bonds maturing on and after October 1, 2023 will be subject to redemption prior to maturity, at a redemption price so specified. $100,470,000 Utility System Revenue Bonds Series 2012B - Variable interest rates based on market rates, 0.03% at September 30, 2014, dated August 1, 2012, final maturity October 1, 2042. The 2012B bonds were issued (a) to refund $31,560,000 in aggregate principal amount of the 2005 Series B Bonds, (b) to provide funds to refund $17,570,000 in aggregate principal amount of the 2005 Series C Bonds, (c) to provide funds to refund $25,930,000 in aggregate principal amount of the 2006 Series A Bonds, (d) to provide funds to refund $14,405,000 in aggregate principal amount of the 2008 Series A Bonds, and (e) to pay costs of issuance of the 2012 Series B Bonds. These bonds mature at various dates through October 1, 2042. The 2012 Series B Bonds are subject to redemption prior to maturity, at a redemption price so specified. Non-Utility Notes: $4,312,000 State Revolving Loan – Depot Park Remediation (FDEP) – In an agreement dated December 9, 2004, FDEP issued the City a loan not to exceed $16,360,500 (including $360,500 of capitalized interest) for remediation of the Depot Park area for stormwater improvements. The loan was amended on September 9, 2008 to reduce the available principal from $16,000,000 to $4,312,000 as the Utility chose to withdraw from the program before drawing any funds. The loan is made interest-free, but includes a 1.97% annual grant allocation assessment rate and a one-time 2% loan service fee. Repayment began in September 2007 and will continue semi-annually until the balance is repaid. Payable from non-ad valorem revenues, including stormwater fees. The principal balance outstanding at September 30, 2014 was $202,728. $1,500,000 Capital Improvement Revenue Note, 2009 (CIRN) – 5.15%, issued July 3, 2009, final maturity November 1, 2028, payable solely from non-ad valorem revenues. Principal payable annually on November 1, beginning in fiscal year 2011, interest payable semi-annually beginning November 1, 2009. This note also funded an additional $11.5 million of capital projects for governmental activities. $1,313,093 Capital Improvement Revenue Bonds, Series 2010 – 2.00% -4.375%, issued July 13, 2010, final maturity October 2030, payable solely from non-ad valorem revenues. Principal payable annually on October 1, beginning 2011. Interest payable semi-annually beginning October 1, 2010. The bonds are not subject to redemption prior to maturity. This note also funded an additional $3,036,907 of capital projects for governmental activities. Utility Notes $85,000,000 Utilities System Commercial Paper Notes, Series C Notes- These tax-exempt notes may continue to be issued to refinance maturing Series C Notes or provide for other costs. Liquidity support for the Series C Notes is provided under a long-term credit agreement dated as of March 1, 2000 with Bayerische Landesbank Gironzentrale. This agreement has been extended to November 30, 2015. The obligation of the bank may be substituted by another bank that meets certain credit standards and which is approved by the Utility and the Agent. Under terms of the agreement, the Utility may borrow up to $85,000,000 with same day availability ending on the termination date, as defined in the agreement. Interest is at a variable market rate which was 0.17% at September 30, 2014. Series C Notes of $62,000,000 are outstanding as of September 30, 2014.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
54
$25,000,000 Utilities System Commercial Paper Notes, Series D Notes - In June 2000, a Utilities System Commercial Paper Note Program, Series D (taxable) was established in a principal amount not to exceed $25,000,000. Liquidity support for the Series D Notes was provided by SunTrust Bank until it was replaced in August 2014. Liquidity support for the Series D Notes is provided under a letter of credit agreement effective August 28, 2014, with State Street Bank and Trust Company. The termination date of the credit agreement is August 28, 2017. There were no Series D Notes outstanding as of September 30, 2014. DEBT SERVICE REQUIREMENTS FOR LONG-TERM DEBT: Annual debt service requirements to maturity for long-term debt are as follows:
Year ending September 30, Principal Interest Principal Interest
2015 5,658,597$ 6,563,409$ 21,796,494$ 21,565,606$ 2016 5,882,976 6,738,434 24,015,101 20,810,515 2017 7,281,600 5,786,992 23,291,044 20,065,944 2018 6,993,976 6,566,436 24,221,017 19,291,125 2019 5,705,255 6,569,063 25,202,496 18,454,515
2020-2024 31,313,530 34,133,070 130,903,834 79,466,188 2025-2029 32,408,166 27,296,208 157,879,010 62,617,111 2030-2034 29,237,462 3,370,800 204,592,068 44,895,226 2035-2039 - - 212,980,000 29,690,524 2040-2043 - - 127,250,000 3,370,215
Total 124,481,562$ 97,024,412$ 952,131,064$ 320,226,969$
Governmental Activities Business-type Activities
Interest rates used are per GASB No. 38, which requires the rate used in the calculations be that in effect as of September 30, 2014. Interest rates on variable-rate long-term debt belonging to the Utility were valued to be equal to 0.03% for the 2005C Series Bonds, 0.02% for the 2006A Series Bonds, 0.05% for the 2007A Series Bonds, 0.03% for the 2008B Series Bonds, 0.03% for the 2012 Series B Bonds and 0.17% for the 2008 Commercial Paper Notes, Series C. Interest expense for the 2009B and 2010B Bonds have been shown net of the federal interest subsidy, which is equal to 32.5% of the annual interest expense and is assumed to remain at said rate for the duration of the bonds. The subsidy is recorded as non-operating revenue on the statement of revenue, expense and changes in net position and statement of activities. For the Utility’s variable rate demand obligations (VRDO), support is provided in connection with tenders for purchase with various liquidity providers pursuant to standby bond purchase agreements (SBPA) or credit agreements relating to that series of obligation. The purchase price of the obligations tendered or deemed tendered for purchase is payable solely from the proceeds of the remarketing thereof and moneys drawn under the applicable SBPA or credit agreement. The current stated termination dates of the SBPA and credit agreements range from December 31, 2014 to December 21, 2015. Each of the SBPA and credit agreement termination dates may be extended. At September 30, 2014, there were no outstanding draws under the SBPA or credit agreements. For the commercial paper notes appearing in the above schedule, to provide liquidity support, GRU has entered into revolving credit agreements with commercial banks. If moneys are not available to pay the principal of any maturing commercial paper notes during the term of the credit agreements, GRU is entitled to make a borrowing under the credit agreements. The termination dates of the credit agreements as of September 30, 2014 are November 30, 2015 and August 28, 2017. The credit agreement termination dates may be extended. The credit agreement supporting the tax-exempt Commercial Paper Notes, Series C (which expires November 30, 2015) had no outstanding draws as of September 30, 2014. The credit agreement supporting the taxable Commercial Paper Notes, Series D (which expires on August 28, 2017) had no outstanding draws as of September 30, 2014. The balance outstanding at September 30, 2014 for defeased utility bonds was $183.3 million.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
55
CAPITAL LEASES General Government Capital Lease: Siemens Buildings Technologies, GPD Energy Project Capital Lease This lease had an initial value of $942,136 and an interest rate of 4.18%, with lease payments due monthly for 144 months, beginning October 10, 2006. The lease will be repaid using non-ad valorem revenues, and it is expected that the building improvements being leased will result in energy savings equal to or greater than the lease payments. During fiscal year 2007 the proceeds were fully expended and capitalized. These assets are being amortized as part of depreciation expense. Debt Service Requirements for General Government Siemens Capital Lease
Year ending
September 30, Principal Interest Total
2015 87,765$ 13,627$ 101,392$ 2016 91,507 9,885 101,392 2017 95,409 5,983 101,392 2018 77,824 1,915 79,739
Total 352,505$ 31,410$ 383,915$
Governmental Activities
Utility Capital Lease:
Gainesville Renewable Energy Center Capital Lease GRU executed a PPA with the Gainesville Renewable Energy Center (GREC). The plant, a 100 megawatt biomass- fired power production facility located in Alachua County, Florida, utilizes woody biomass comprised of urban wood waste, forest wood waste and mill residue. The nature of these are further limited by Forest Sustainability Standards that are included as part of the PPA. The PPA requires that GREC provide available energy, delivered energy and environmental attributes exclusively to GRU and began commercial operations on December 17, 2013. GRU is required to pay for all available energy from the plant at fixed prices, adjusted for liquidated damages and other penalties. GRU is also required to pay a variable operations and maintenance charge for all delivered energy, a fuel charge for all delivered energy, a shutdown charge as applicable and ad valorem taxes paid by GREC. The PPA has been accounted for as a long-term capital lease for a term of 30 years with a capital lease asset and liability recorded. The capital lease asset was recorded at $1,006,808,754 at September 30, 2014. The total payments applicable to the lease were $48.2 million for the fiscal year ended September 30, 2014. The payments for fiscal year 2014 included $35.5 million for interest expense included in fuel costs. The capital lease asset will be amortized over the life of the PPA. Amortization of $26,433,241 was recorded for the fiscal year ended September 30, 2014.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
56
The following lists the minimum payments due under the PPA as of September 30, 2014.
Year Payments 2015 61,216,224$ 2016 61,216,224 2017 61,216,224 2018 61,216,224 2019 61,216,224
2020-2024 306,081,120 2025-2029 306,081,120 2030-2034 306,081,120 2035-2039 306,081,120 2040-2044 257,865,157
Total minimum lease payments 1,788,270,757 Less: Amounts representing interest (794,162,479) Net minimum lease payments 994,108,278$
If at any time GRU’s senior unsecured debt rating is rated below a Standard & Poor’s rating of A- or a Moody’s rating of A3 (such rating levels to be equitably adjusted if either rating agency were in the future to change its rating standards), GRU is required to pay or provide to GREC a security deposit equal to $40 million as security for GRU’s performance of its obligations under the PPA. If required, such security shall be in the form of cash deposited in either an interest bearing escrow account mutually acceptable to GREC and GRU, an unconditional and irrevocable direct pay letter of credit in form and substance reasonably satisfactory to GREC, or a performance bond in form and substance reasonably satisfactory to GREC. As of September 30, 2014, GRU’s credit ratings were in compliance with the performance security requirements. A land lease was executed on September 28, 2009 between GRU and GREC for the land on which the biomass plant is located. The payment per year is $100 for a term of 47 years on the condition that GREC provides dependable energy to GRU. If a condition occurs in which GREC does not provide dependable energy to GRU, the payment will be adjusted to the fair market value of the land at that time. Rental income of $100 was received for the fiscal year ended September 30, 2014.
HEDGING ACTIVITIES
Interest Rate Hedges The Utility is a party to certain interest rate swap agreements. GRU applies hedge accounting where applicable. Under GRU’s interest rate swap programs, GRU either pays a variable rate of interest, which is based on various indices, and receives a fixed rate of interest for a specific period of time (unless earlier terminated), or GRU pays a fixed rate of interest and receives a variable rate of interest, which is based on various indices for a specified period of time (unless earlier terminated). These indices are affected by changes in the market. The net amounts received or paid under the swap agreements are recorded as an adjustment to interest on debt in the statements of revenues, expenses, and changes in net position. No money is initially exchanged when GRU enters into a new interest rate swap transaction. Following is a disclosure of key aspects of the agreements.
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September 30, 2014
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Objective of the interest rate swap. To protect against the potential of rising interest rates, GRU has entered into interest rate swap transactions. Terms, fair values and credit risk. The terms, fair values and credit ratings of the outstanding swaps as of September 30, 2014 were as follows. The notional amounts of the swaps match the principal amounts of the associated debt. Associated Bond Issue 2008CP* 2005B* 2005C* Notional Amounts $ 22,000,000 $45,000,000 $ 45,525,000
Effective Date 07/03/2002 11/16/2005 06/01/2008 Fixed Payer Rate 4.100% SIFMA 3.200% Variable Receiver Rate SIFMA 77.14% of 1 MO
LIBOR 60.36% of 10 YR LIBOR
Fair Value $(1,649,438) $76,316 $(2,273,255) Termination Date 10/01/2017 10/01/2021 10/01/2026 Counterparty Credit Rating Baa2/A-/A Aa2/AAA Aa3/A+/A+
Associated Bond Issue
2006A*
2008B*
2008B*
Notional Amounts $ 41,145,000 $ 58,500,000 $ 31,500,000 Effective Date 07/06/2006 02/13/2008 02/13/2008 Fixed Payer Rate 3.224% 4.229% 4.229% Variable Receiver Rate 68% of 10 YR
LIBOR-0.365% SIFMA SIFMA
Fair Value $(2,448,278) $(13,769,665) $(7,416,897) Termination Date 10/01/2026 10/01/2038 10/01/2038 Counterparty Credit Rating Aa2/AAA Aa3/A+/A+ Aa3/A+/A+
Associated Bond Issue 2007A* Notional Amounts $ 137,875,000 Effective Date 03/01/2007 Fixed Payer Rate 3.944% Variable Receiver Rate SIFMA Fair Value $(27,622,299) Termination Date 10/01/2036 Counterparty Credit Rating Aa2/AAA * See “Basis Risk” section below in Note 5 “Long Term Debt” for details. Fair Value. Excluding the basis swap, six of the swap agreements had a negative fair value as of September 30, 2014. Due to the low interest rate environment, as compared to the period when the swaps were entered into, the fixed payer rates currently exceed the variable receiver rates. These swaps are based on a different variable receiver rate, which is partially responsible for the difference in performance.
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Swap payments and associated debt. Assuming interest rates remain the same as at September 30, 2014, debt service requirements on the interest rate swap would be as follows:
Fiscal Year Net Swap Ending Sept 30, Principal Interest Principal Interest Interest Total
2015 5,410,000$ 204,752$ 485,000$ 1,306,974$ 11,134,546$ 18,541,272$ 2016 6,425,000 195,308 3,320,000 1,209,186 10,756,351 21,905,845 2017 6,620,000 185,415 3,495,000 1,031,069 10,368,175 21,699,659 2018 6,915,000 175,010 3,680,000 840,573 9,965,548 21,576,131 2019 6,505,000 173,886 3,875,000 639,988 9,800,479 20,994,353
2020-2024 43,270,000 835,771 10,115,000 681,140 46,103,340 101,005,251 2025-2029 63,585,000 732,538 - - 37,362,556 101,680,094 2030-2034 123,890,000 377,893 - - 23,695,498 147,963,391 2035-2039 73,930,000 56,348 - - 4,080,824 78,067,172
Total 336,550,000$ 2,936,921$ 24,970,000$ 5,708,930$ 163,267,317$ 533,433,168$
Variable Rate Fixed Rate
The interest rates used are those in effect as of September 30, 2014.
Fair Value of Interest Rate
Swaps at September 30,
2014 Changes in Fair
Value
Changes in Deferred (Inflows)/ Outflows
Changes in Regulatory
(Asset)/ Liability for Ineffective Instruments
2008CP (1,649,438)$ 795,369$ (788,386)$ (6,983)$ 2005B 76,316 143,486 - (143,486) 2005C (2,273,255) (470,718) - 470,718 2006A (2,448,278) (518,191) - 518,191 2008B (13,769,665) (2,558,840) 2,558,840 - 2008B (7,416,897) (1,380,896) 1,380,896 - 2007A (27,622,299) (7,363,839) 7,363,839 -
(55,103,516)$ (11,353,629)$ 10,515,189$ 838,440$
Credit Risk. As of September 30, 2014 the fair value of six of the swaps were negative, therefore the City is not subject to credit risk. To mitigate the potential for credit risk, the City has negotiated additional termination event and collateralization requirements in the event of a ratings downgrade. Failure to deliver the Collateral Agreement to the City as negotiated and detailed in the Schedule to the International Swap and Derivative Agreement (ISDA) for each counterparty would constitute an event of default with respect to that counterparty.
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September 30, 2014
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Basis Risk. The swaps expose the City to basis risk. The 2005 Series B Swap is exposed to basis risk through the potential mismatch of 77.14% of one-month
LIBOR and the SIFMA rate. As a result, savings may not be realized. As of September 30, 2014, the one month LIBOR rate was 0.1565%, which places the SIFMA at approximately 25.56% of one month LIBOR at that date.
The 2005 Series C Swap is exposed to basis risk through the potential mismatch of 60.36% of 10-year LIBOR and the variable 31-day rollover rate. As a result, savings may not be realized.
The 2006 Series A Swap is exposed to basis risk through the potential mismatch of 68% of 10-year LIBOR less .365% and the variable 31-day rollover rate. As a result, savings may not be realized. As of September 30, 2014, the 10-year LIBOR rate was at 2.635%.
The 2007 Series A and the 2008 Series B Swaps are exposed to the difference between SIFMA and the variable 31-day rollover rate.
The 2008 Commercial Paper Series C Notes Swap (formerly the 2002 Series A Swap) is exposed to the difference between the weekly SIFMA index and CP maturity rate of less than 90 days based on current market conditions. As a result, savings may not be realized. As of September 30, 2014, the SIFMA rate was 0.04%.
Termination Risk. The swap agreement will be terminated at any time if certain events occur that result in one party not performing in accordance with the agreement. The swap can be terminated due to illegality, a credit event upon merger, an event of default, or if credit ratings fall below established levels. Interest Rate Risk. This risk is associated with the changes in interest rates that will adversely affect the fair values of GRU’s swaps and derivatives. GRU’s exposure to this risk is through its pay-fixed, variable interest rate swap agreements. GRU mitigates this risk by actively reviewing and negotiating its swap agreements. Rollover Risk. GRU is exposed to this risk when its interest rates swap agreements mature or terminate prior to the maturity of the hedged debt. When the counterparty to the interest rate swap agreements chooses to terminate early, GRU will be re-exposed to the rollover risk. Currently, there is no early termination option being exercised by any of GRU’s interest rate swap counterparties. Market Access Risk. This risk is associated with the event that GRU will not be able to enter credit markets for interest rate swap agreements or that the credit market becomes more costly. GRU maintains a strong credit rating of “Aa2” from Moody’s, “AA” from Standard and Poor’s, and “AA-” from Fitch Ratings. Currently GRU has not encountered any credit market barriers. Effectiveness. Of the interest rate swap agreements, three have been determined to be effective, while four have been deemed ineffective as of September 30, 2014. The ineffective portion related to interest rate swap agreements is recorded as a regulatory asset for $4.6 million as of September 30, 2014. Fair value changes of $50.4 million have been recorded for interest rate swap agreements in accumulated decrease in fair value of hedging derivatives at September 30, 2014. There were no realized gains or losses related to interest rate swaps as of September 30, 2014.
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September 30, 2014
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Fuel Hedges. GRU utilizes commodity price swap contracts to hedge the effects of fluctuations in the prices for natural gas. These transactions meet the requirements of GASB Statement No. 53. Realized gains and losses related to gas hedging positions were recorded as a reduction of fuel costs of $1.1 million for September 30, 2014. Fair value changes have been recorded of $300,000 for natural gas hedging agreements in accumulated decrease in fair value of hedging derivatives at September 30, 2014. Unrealized gains and losses related to gas hedging agreements are deferred in a regulatory account and recognized in earnings as fuel costs are incurred. All fuel hedges have been determined to be effective. The information below provides a summary of results based on GRU’s risk management activity for fiscal year 2014.
Fair Value of Cash Flow Hedges at September 30,
2014 Changes in Fair Value Deferred (Inflows)/
Outflows of Resources Notional Amount
(MMBTU's) Natural Gas 373,615$ 345,231$ (414,690)$ 4,130,000
PLEDGED REVENUES: The 1994 and 2004 Guaranteed Entitlement Revenue and Refunding Bonds were issued to refund multiple prior issues and to fund road and building construction and repair projects. Both issues are secured by a lien upon and pledge of the City’s Guaranteed Entitlement Funds. The remaining principal and interest payments on these bonds at September 30, 2014 total $10,799,900, payable semiannually through July 1, 2024. Pledged revenue is $1,100,340 each year, which is slightly greater than the annual debt requirement (in 2014, the coverage ratio was 1.0003). Under the terms of the Bond Resolution relating to the sale of the Utilities System Revenue Bonds, payment of the principal and interest is secured by an irrevocable lien on GRU’s net revenue (exclusive of any funds that may be established pursuant to the Bond Resolution for decommissioning and certain other specified purposes), including any investments and income thereof. The Utilities System Revenue Bonds have a first lien and the Commercial Paper Series C and D Notes have a second lien. The Bond Resolution contains certain restrictions and commitments, including GRU’s covenant to establish and maintain rates and other charges to produce revenue sufficient to pay operation and maintenance expenses, amounts required for deposit in the debt service fund, and amounts required for deposit into the utility plant improvement fund.
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CHANGES IN LONG-TERM LIABILITIES:
Long-term liability activity for the year ended September 30, 2014 was as follows:
Beginning Ending Due Within Balance Additions Reductions Balance one year
Governmental activities: Bonds payable: Revenue bonds and loans 28,730,057$ -$ 16,042,174$ 12,687,883$ 2,435,665$ Bond premium 262,270 - 53,988 208,282 - Pension obligation bonds 80,790,291 - 1,559,358 79,230,933 1,651,777 OPEB obligation bonds 7,430,000 - 7,430,000 - - Less deferred amounts: For issuance discounts 43,844 - 3,360 40,484 -
Total bonds payable 117,168,774 - 25,082,160 92,086,614 4,087,442 Capital lease 436,681 - 84,176 352,505 87,765 Revenue note 19,326,461 14,715,000 1,478,715 32,562,746 1,571,154 Compensated absences 3,893,913 2,018,221 2,063,396 3,848,738 143,300
Total 140,825,829$ 16,733,221$ 28,708,447$ 128,850,603$ 5,889,661$
Typically, the General Fund has been used in prior years to liquidate the liability for compensated absences.
Beginning Ending Due Within Balance Additions Reductions Balance one year
Business-type activities: Bonds payable: Utility revenue bonds 912,795,000$ -$ 26,845,000$ 885,950,000$ 16,380,000$ Add: Issuance premiums 10,931,346 - 701,510 10,229,836 - Less deferred amounts: For issuance discounts 25,575 - 25,575 - -
Total bonds payable 923,700,771 - 27,520,935 896,179,836 16,380,000 Utility notes payable 62,000,000 - - 62,000,000 5,100,000 Capital Lease - 994,108,278 - 994,108,278 16,828,193 Other notes payable 2,974,623 1,578,448 372,007 4,181,064 316,494 Compensated absences 3,494,698 2,627,415 1,237,852 4,884,261 187,900
Total 992,170,092$ 998,314,141$ 29,130,794$ 1,961,353,439$ 38,812,587$
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NOTE 6 – CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2014 was as follows:
Beginning Balance Increases Decreases Ending Balance Governmental activities: Capital assets, not being depreciated: Land 30,338,302$ 3,954,076$ 1,385,391$ 32,906,987$ Construction in progress 40,649,374 4,008,490 23,764,290 20,893,574
Total capital assets, not being depreciated 70,987,676 7,962,566 25,149,681 53,800,561
Capital assets, being depreciated: Buildings 57,252,590 18,853,067 455,838 75,649,819 Improvements other than buildings 14,304,665 2,523,507 232,096 16,596,076 Machinery and equipment 42,544,998 3,665,684 1,919,413 44,291,269 Infrastructure 172,651,877 15,753,881 - 188,405,758
Total capital assets being depreciated 286,754,130 40,796,139 2,607,347 324,942,922
Less accumulated depreciation for: Buildings (22,289,872) (1,918,667) (208,078) (24,000,461) Improvements other than buildings (6,727,652) (645,626) (232,096) (7,141,182) Machinery and equipment (31,818,983) (3,364,314) (1,853,524) (33,329,773) Infrastructure (107,478,903) (2,904,865) - (110,383,768)
Total accumulated depreciation (168,315,410) (8,833,472) (2,293,698) (174,855,184)
Total capital assets, being depreciated, net 118,438,720 31,962,667 313,649 150,087,738
Governmental activities capital assets, net 189,426,396$ 39,925,233$ 25,463,330$ 203,888,299$
Depreciation expense was charged to governmental activities functions/programs of the primary government as follows:
General Government 941,061$ Public Safety 1,289,835 Transportation 3,279,461 Economic Environment 2,482 Culture & Recreation 1,272,433 Depreciation on capital assets held by the City's internal service
funds is charged to the various functions based on their usage of the assets 2,048,200
Total depreciation expense - governmental activities 8,833,472$
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
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Beginning Ending Balance Increases Decreases Balance
Business-type activities: Capital assets, not being depreciated: Land 7,270,472$ 200,182$ 191,432$ 7,279,222$ Construction in progress 143,931,014 93,337,750 47,100,590 190,168,174
Total capital assets, not being depreciated 151,201,486 93,537,932 47,292,022 197,447,396
Capital assets, being depreciated: Utility plant and equipment 1,687,784,363 43,166,917 6,301,726 1,724,649,554 Utility plant and equipment - capital lease - 1,006,808,995 - 1,006,808,995 Buildings 7,941,995 1,200,679 7,670 9,135,004 Improvements other than buildings 4,379,266 200,319 - 4,579,585 Machinery and equipment 39,254,892 2,045,580 617,617 40,682,855 Infrastructure 29,408,014 1,599,540 - 31,007,554
Total capital assets, being depreciated 1,768,768,530 1,055,022,030 6,927,013 2,816,863,547
Less accumulated depreciation for: Utility plant and equipment (603,523,959) (53,551,854) (6,292,504) (650,783,309) Utility plant and equipment - capital lease - (26,433,241) - (26,433,241) Buildings (2,887,954) (301,136) (7,668) (3,181,422) Improvements other than buildings (2,425,200) (152,748) - (2,577,948) Machinery and equipment (20,092,566) (3,098,239) (598,279) (22,592,526) Infrastructure (18,811,993) (303,924) - (19,115,917)
Total accumulated depreciation (647,741,672) (83,841,142) (6,898,451) (724,684,363)
Total capital assets, being depreciated, net 1,121,026,858 971,180,888 28,562 2,092,179,184
Business-type activities capital assets, net 1,272,228,344$ 1,064,718,820$ 47,320,584$ 2,289,626,580$
Depreciation expense was charged to business-type activities functions/programs of the primary government as follows:
Utility 79,985,095$ Regional Transit System 3,167,925 Stormwater 480,853 Ironwood 152,865 Florida Building Code Enforcement 3,000 Solid Waste 51,404
Total depreciation expense - business type activities 83,841,142$
For the Utility, the average depreciation rate was 3.62% for utility plant and equipment for fiscal year 2014. NOTE 7 - INDIVIDUAL FUND DEFICITS The following funds had deficit net position or fund balances at September 30, 2014: Special Revenue Funds Community Redevelopment Agency Fund $(2,119,690) FFGFC 2007 Series Debt Service Fund $(1,746)
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Enterprise Fund Ironwood Golf Course $(167,730) The Community Redevelopment Agency Fund has a negative fund balance due to long term advances from the General Fund for redevelopment projects. These advances are described in more detail in Note 9. The FFGFC 2007 Series Debt Service incurred a negative fund balance because not enough cash was transferred to cover the fiscal charges for fiscal year 2014. In fiscal year 2015, additional transfers from the General Fund will be made to cover this deficit. The Ironwood Golf Course Fund has reported expenses in excess of revenues for several years, which has depleted the fund’s net position. Management has implemented a variety of cost saving plans, including significantly reducing expenses for the clubhouse and pro shop. In 2006, a capital improvement surcharge was added to each round of play, which is expected to generate restricted revenues for long-term capital maintenance and additions. The City is currently implementing a plan to reverse the ongoing deficits which included major capital improvements in fiscal year 2010 and changes in the rate structures. In addition, in FY2010, the City began a ten- year series of transfers from the General Fund to fully fund the deficit balance. In FY2020, the City plans to incorporate the Golf Course into the General Fund as a part of the Parks, Recreation, and Cultural Affairs Department. NOTE 8 – COMPOSITION OF RECEIVABLES AND PAYABLES Governmental activities Receivables: General Fund – Net accounts receivable as of September 30, 2014 are comprised of approximately 26% taxes (communications services tax and payment in lieu of taxes), 7% due from other governments, 5% receivables from employees, and 62% other receivables. Nonmajor governmental funds – Net accounts receivable as of September 30, 2014 consist of approximately 87% intergovernmental receivables, and 13% other receivables. Payables: General Fund – As of September 30, 2014, the payables balance in the General Fund consists of 43% wages payable and 57% other payables. Nonmajor governmental funds – Payables balances as of September 30, 2014 are comprised of 8% construction related obligations, 91% other payables and 1% wages payable. Business-type activities Receivables: Utility Fund – As of September 30, 2014 the net accounts receivable balance in the Utility Fund consists of 100%. customer receivables for billed and unbilled utility services. Nonmajor Enterprise Funds – Net accounts receivable as of September 30, 2014 are comprised of approximately 69% intergovernmental receivables and 31% other receivables. Payables: Utility Fund – As of September 30, 2014 the payables balance in the Utility Fund consists of 15% fuels payable, 45% standard vendor payables, 10% intergovernmental payables, 22% wages payable and 8% other payables. Nonmajor Enterprise Funds – As of September 30, 2014 payables balances consist of 100% standard vendor payables.
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September 30, 2014
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NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, ADVANCES AND TRANSFERS Due to/from other funds:
Nonmajor Nonmajor Due to: Utility governmental Enterprise Total
General 4,038,218$ 5,168,601$ -$ 9,206,819$ Utility - 126,896 1,905,890 2,032,786 Nonmajor Governmental 11,267 - - 11,267 Internal Service 650,934 - - 650,934 Nonmajor Enterprise 654,438 - 2,970,101 3,624,539
Total 5,354,857$ 5,295,497$ 4,875,991$ 15,526,345$
Due from:
The $2,970,101 interfund payable between enterprise funds resulted from Ironwood and Regional Transit overdrawing their share of the pooled cash account. The $5,168,601 due to the General Fund from nonmajor governmental funds is entirely composed of an interfund payable resulting from certain funds overdrawing their share of the pooled cash account. All remaining balances resulted from the time lag between the dates that (1) interfund good and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Advances to/from other funds: The Advance to Other Funds balance in the General Fund and the Advance from Other Funds in the Nonmajor Governmental Funds resulted from various notes between the City and the Community for Redevelopment Agency (CRA) blended component unit for various projects within the four CRA districts. A description of each note is listed below: $836,900 Commerce Building/AMJ Project, Downtown Promissory Note – 1.05% to 4.28% fixed annual interest rate. In September 1999, a promissory note payable was established from the City to CRA to be repaid from tax increment proceeds associated with the Commerce Building project. In July 2004, the note was amended to specify that repayment will be from all tax increment proceeds from the Downtown Redevelopment Area. The final repayment is scheduled for January 2020. $434,955 The Lofts (Old Stringfellow) – 609 West University Avenue, College Park Promissory Note – 1.57% to 4.96% fixed annual interest rate. In April 2001, a promissory note payable was established from the City to CRA to be repaid from tax increment proceeds. In October 2004, the note was amended for the redevelopment of the area known as The Lofts. The final repayment is scheduled for November 2024. $650,000 Fifth Avenue/Pleasant Street Projects, Fifth Avenue/Pleasant Street Promissory Note –6.72% fixed annual interest rate. In April 2002, a promissory note payable was established from the City to CRA to be repaid from tax increment proceeds. The final repayment is scheduled for July 2022. $1,400,600 Courthouse Parking Facility Project, Downtown Promissory Note – 6.72% fixed annual interest rate. In April 2002, a promissory note payable was established from the City to CRA to be repaid from tax increment proceeds. The final repayment is scheduled for July 2024. $300,000 Eastside District Redevelopment Trust Promissory Note – 4.5% to 6.2% fixed annual interest rate. In May 2005, a promissory note payable was established from the City to CRA to be repaid from tax increment proceeds. The final repayment is scheduled for July 2025.
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$800,000 College Park / 2nd Avenue Redevelopment Trust, College Park Promissory Note – 4.5% to 6.2% fixed annual interest rate. In May 2005, a promissory note payable was established from the City to CRA to be repaid from tax increment proceeds. The final repayment is scheduled for July 2025. Following is the repayment schedule of advances from the City’s General Fund to the CRA:
Year ending
September 30, Principal Interest Total
2015 235,599$ 114,708$ 350,307$ 2016 246,392 104,872 351,264 2017 255,096 94,267 349,363 2018 267,505 83,051 350,556 2019 282,257 70,511 352,768
2020-2024 1,180,764 175,598 1,356,362 2025 109,661 4,044 113,705
Total 2,577,274$ 647,051$ 3,224,325$
Advances from General Fund to CRA
Interfund transfers:
Nonmajor Internal Nonmajor General Utility governmental Service Enterprise Total
Transfers to: General -$ 37,316,841$ 185,899$ -$ 360,771$ 37,863,511$ Nonmajor Governmental 15,132,341 - 3,783,631 194,379 2,836,821 21,947,172 Internal Service - - 606,404 - - 606,404 Nonmajor Enterprise 1,508,579 - 440,000 - - 1,948,579
Total 16,640,920$ 37,316,841$ 5,015,934$ 194,379$ 3,197,592$ 62,365,666$
Transfers from:
The Utility transfer totaling $37,316,841 to the General Fund is based on a formula adopted by the City Commission. Please refer to Note 10 for more detail. $11,191,798 was transferred from the General Fund to Debt Service Funds for scheduled debt service payments. Other interfund transfers were made in the normal course of operations and are consistent with the activities of the fund making the transfer.
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September 30, 2014
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NOTE 10 - ENTERPRISE FUND (UTILITY FUND) TRANSFERS TO GENERAL FUND
In 1986, the City Commission established a formula to determine the amount of Utility System revenues to be transferred to the General Fund of the City from the Utility Fund. The formula predominately tied the transfer directly to the financial performance of the Utility System. The transfer to the General Fund may be made only to the extent such monies are not necessary to pay operating and maintenance expense and to pay debt service on the outstanding bonds and subordinated debt or to make other necessary transfers under the Bond Resolution. The formula-based transfer to the General Fund was suspended for the four year period from fiscal year 2011 to fiscal year 2014. For each year in that period, a jointly negotiated amount was transferred and adjusted subsequent to each year by comparing the negotiated amount transferred to the amount that would have been transferred under the prior formula. If the difference between the fixed agreed upon transfer amount and the General Fund Transfer formula calculated amount is no greater than $500,000, then the transfer amount will remain unchanged for that fiscal year. If the difference is greater than $500,000 over or under, then the General Fund and GRU will equally share in the gain or loss for amounts greater than $500,000 for that fiscal year. The transfer to the General Fund for the year ended September 30, 2014 was $37,316,841. Effective for fiscal year 2015, the City Commission approved a change to the transfer formula. This new transfer formula will contain the following components:
A new base equal to the fiscal year 2014 General Fund Transfer level that would have been produced under the formula methodology that was in place from fiscal years 2001 through 2010.
Growth of the base by 1.5% per year for fiscal years 2016 through 2019.
Reduction of this amount by an amount equal to the property tax revenue that would accrue to the City of Gainesville related to the GREC Biomass Facility.
In addition to the components above, a further one-time reduction of $250,000 for fiscal year 2015 only.
NOTE 11 - COMMITMENTS AND CONTINGENCIES General The primary factors currently affecting the utility industry include environmental regulations, restructuring of the wholesale energy markets, the formation of independent bulk power transmission systems, the formation of an Electric Reliability Organization (ERO) under FERC jurisdiction, and the increasing strategic and price differences among various types of fuels. No state or federal legislation is pending or proposed at this time for retail competition in Florida. The emerging role of municipalities as telecommunications providers pursuant to the 1996 Federal Telecommunications Act has resulted in a number of state-level legislative initiatives across the nation to curtail this activity. In Florida, this issue culminated in the passage, in 2005, of legislation codified in Section 350.81, Florida Statutes (Section 350.81) that defined the conditions under which municipalities are allowed to provide retail telecommunications services. Although GRU has special status as a grandfathered entity under the legislation, the provision of certain additional retail telecommunications services by the Utility would implicate certain of the requirements of Section 350.81. Management does not expect that any required compliance with the requirements of Section 350.81 would have a material adverse effect on the operations of financial condition of GRUCom. GRU cannot predict what effects these factors will have on the business, operations and financial condition of the Utility, but the effects could be significant.
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Environmental and Other Natural Resource Regulations GRU and its operations are subject to federal, state and local environmental regulations which include, among other things, control of emissions of particulates, SO2 and NOx into the air; discharges of pollutants, including heat, into surface or ground water; the disposal of wastes and reuse of products generated by wastewater treatment and combustion processes; management of hazardous material; and the nature of waste materials discharged into the wastewater system’s collection facilities. Environmental regulations generally are becoming more numerous and more stringent and, as a result, may substantially increase costs of the Utility’s services by requiring changes in the operation of existing facilities as well as changes in the location, design, construction and operation of new facilities (including both facilities that are owned and operated by GRU as well as facilities that are owned and operated by others (including, particularly, GREC), from which the Utility purchases output, services, commodities and other materials). There is no assurance that the facilities in operation, under construction or contemplated will always remain subject to the regulations currently in effect or will always be in compliance with future regulations. Compliance with applicable regulations could result in increases in costs of construction and/or operation of affected facilities, including associated costs such as transmission and transportation, as well as limitations on the operation of such facilities. Failure to comply with regulatory requirements could result in reduced operating levels or the complete shutdown of those facilities not in compliance as well as the imposition of civil and criminal penalties. Increasing concerns about climate change and the effects of greenhouse gases (GHG) on the environment have resulted in the EPA proposing on June 2, 2014 carbon regulations for existing power plants. Because of how recently the proposed rules for existing units were issued by the EPA, they could change significantly before becoming final. Therefore, management is unable to predict what impact such regulations will have on GRU. Air Emissions The Clean Air Act The Clean Air Act regulates emissions of air pollutants, establishes national air quality standards for major pollutants, and requires permitting of both new and existing sources of air pollution. Among the provisions of the Clean Air Act that affect GRU’s operations are (1) the acid rain program, which requires nationwide reductions of SO2 and NOx from existing and new fossil-fueled generating plants, (2) provisions related to toxic or hazardous pollutants, (3) requirements to address regional haze, and (4) requirements to address effects on ambient air quality standards from transport of fine particulate matter and ozone (Clean Air Interstate Rule, Clean Air Transport Rule, Cross State Air Pollution Rule). The Clean Air Act also requires constructing new major air pollution sources or implementing significant modifications to existing air pollution sources to obtain a permit prior to such construction or modifications. Significant modifications include operational changes that increase the emissions expected from an air pollution source above specified thresholds. In order to obtain a permit for those purposes, the owner or operator of the affected facility must undergo a new source review, which requires the identification and implementation of Best Available Control Technology (BACT) for all regulated air pollutants and an analysis of the ambient air quality impacts of a facility/ In 2009, the EPA announced plans to actively pursue new source review enforcement actions against electric utilities for making such changes to their coal-fired power plants without completing new source review. Under Section 114 of the Clean Air Act, the EPA has the authority to request from any person who owns or operates an emission source information and records about operation, maintenance, emissions, and other data relating to such source for the purpose of developing regulatory programs, determining if a violation occurred (such as the failure to undergo new source review), or carrying out other statutory responsibilities. The Clean Air Interstate Rule (CAIR) In March 2005, the EPA issued CAIR, which requires reductions of overall SO2 and NOx emissions. CAIR is a two- phase cap and trade program under which utilities have several options for complying with the emissions cap, including installation of emission controls, purchasing allowances or switching fuels. GRU’s DH and JRK Stations are subject to CAIR. Significant capital and operating and maintenance expenditures have been incurred to meet the 2009 and 2010 CAIR compliance dates for Phase I of the SO2 and NOx emission caps respectively. GRU installed an SCR, a dry circulating scrubber system, and a fabric filter system at DH 2, all of which went on-line May 1, 2009.
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On July 11, 2008, a three judge panel of the United States Court of Appeals for the District of Columbia (D.C. Circuit Court) in North Carolina v. Environmental Protection Agency, 531 F.3d 896 (North Carolina v. EPA), unanimously vacated CAIR. On December 23, 2008, the D.C Circuit Court remanded the CAIR case to the EPA to revise CAIR consistent with its July 11, 2008 decision in North Carolina v. EPA. In a subsequent decision in response to petitions for rehearing, however, the court in December 2008 decided to remand CAIR to the EPA without vacating it. This had the effect of reinstating CAIR, including the trading programs until the EPA issued a new rule consistent with the court’s decision. The Clean Air Transport Rule On August 2, 2010, the EPA published in the Federal Register a proposed Clean Air Transport Rule (Transport Rule) to reduce the interstate transport of fine particulate matter and ozone. Under Section 110(a)(2)(D)(i)(I) of the Clean Air Act, states are required to prohibit emissions that contribute significantly to nonattainment in, or interfere with maintenance by, any other state with respect to any primary or secondary National Ambient Air Quality Standards (NAAQS). In the proposed Transport Rule, the EPA asserts that emissions of SO2 and NOx in 32 eastern states contribute significantly to nonattainment or interfere with maintenance of NAAQS in one or more downwind states, more specifically with respect to the annual PM2.5 NAAQS, the 24 hour average PM2.5 NAAQS, and the ozone NAAQS. The proposed Transport Rule contained on preferred remedy option and two alternate schemes. The EPA’s preferred option proposed to establish a cap-and-trade program with certain variance provisions and limited interstate trading. The proposed transport Rule has been superseded by the Cross-State Air Pollution Rule (CSAPR). The Cross-State Air Pollution Rule (CSAPR) On July 6, 2011, the EPA released its final Cross-State Air Pollution Rule. This rule is the final version of the transport Rule and replaces CAIR. In Florida, only ozone season NOx emissions are regulated by CSAPR through use of allowances. Using historical generation figures to project future emission, Management believes that GRU will have sufficient ozone season NOx allowances to operate into the foreseeable future. Various states, local governments and other stakeholders challenged CSAPR and, on August 21, 2012, a three-judge panel of the D.C. Circuit Court, by a 2-1 vote, held that the EPA had exceeded its statutory authority in issuing CSAPR and vacated CSAPR along with certain related federal implementation plan. As part of its holding, the D.C. Circuit Court panel held that the EPA should continue to administer the original CAIR program until the EPA promulgates a valid replacement. On October 5, 2012, the EPA filed a petition for rehearing en banc with the D.C. Circuit Court requesting that the full court reconsider the August 21, 2012 decision. That request was denied. On March 29, 2013, the Department of Justice and several environmental groups filed Petitions for certiorari, asking the Supreme Court to accept the case and overturn CSAPR. The Supreme Court granted certiorari on June 24, 2013. On April 29, 2014, the Supreme Court reversed part of the D.C. Circuit Court’s decision, upholding parts of the CSAPR program, and remanded other issues back to the D.C Circuit Court for further proceedings. The D.C. Circuit Court set a deadline of July 3, 204, for parties to brief on how they would like to proceed with the remaining issues and lawsuits. On June 26, 2014, the EPA filed a motion with the D.C. Circuit Court to lift the stay of the CSAPR. EPA has indicated that, at this time, CAIR remains in place and that no immediate action by the states or affected sources is expected. EPA is reviewing the Supreme Court’s decision and is evaluating next steps, including how to address compliance deadlines that passed during the ongoing litigation and stay. On October 23, 2014, the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) granted EPA’s request that the court lift the stay of the Cross State Air Pollution Rule. While the court did not specifically address EPA’s request that the court extend CSAPR’s compliance deadlines by three years, GRU believes that, by granting EPA’s motion, the court granted the EPA’s request. Since Florida only has to comply for ozone season NOx, only the following deadlines apply to GRU’s operations:
May 1, 2015: Phase 1 begins for ozone season NOx trading program. Existing units must begin monitoring and reporting NOx emissions.
December 1, 2015 (and each December 1 thereafter) date by which sources must demonstrate compliance with ozone season NOx, trading program (i.e. allowance transfer deadline).
May 1, 2017: Phase 2 (2017 and beyond) begins for ozone season NOx, trading program. Assurance provisions in effect.
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Mercury and Air Toxics Standards (MATS) On December 16, 2011, the EPA promulgated a rule to reduce emissions of toxic air pollutants from power plants. Specifically, these mercury and air toxics standards of MATS for power plants will reduce emissions from new and existing coal and oil-fired electric utility steam generating units (EGUs). The EPA also signed revisions to the new source performance standards for fossil fuel-fired EGUs. Such revisions revised the standards that new coal and oil- fired power plants must meet for particulate matter, SO2 and NOx . On November 25, 2014, the United States Supreme Court accepted certiorari to hear challenges to the mercury admission rules. A review of existing emissions data confirms GRU’s compliance with all of the new standards without the installation of additional pollution control equipment. Effluent Limitation Guidelines In November 2010, the EPA agreed to propose the power plant Effluent Limitation Guidelines (ELGs) for coal-fired steam electric plants by July 23, 2012, and finalize the guidelines in May 2014. The ELGs were last revised in 1982. The EPA is considering more stringent limits for new metals and parameters for individual wastewater streams generated by steam electric power plants, with emphasis on coal-fired power plants. The EPA will evaluate the technologies and cost to remove those metals and identify the Best Available Technology (BAT) to affect their control in coal-fired power plant effluent. After a number of delays in issuing the proposed ELG rule, the EPA issued a draft rule on June 7, 2013 and accepted comments on the rule until September 20, 2013. The agency is under a consent decree to take final action by May 22, 2014. Under the proposed approach, new requirements for existing power plants would be phased in between 2017 and 2022 and would leverage flexibilities as necessary. The City continues to evaluate the potential impact on the rule on the Utility. Regional Haze On June 15, 2005, the EPA issued the Clean Air Visibility Rule, amending its 1999 regional haze rule, which had established timelines for states to improve visibility in national parks and wilderness areas throughout the United States. Under the emended rule, certain types of older sources may be required to install best available retrofit technology (BART). Some of the effects of the amended rule could be requirements for newer and cleaned technologies and additional controls for particulate matter, SO2 and NOx emissions from utility sources. The states were to develop their regional haze implementation plans by December 2007, identifying the facilities that will have to reduce emissions and then set emissions limits for those facilities. However, state have not met that schedule and on January 15, 2009, the EPA published a notice finding that 37 states, the District of Columbia and the Virgin Islands failed to submit all or a portion of their regional haze implementation plans. The EPA’s notice initiates a two-year period during which each jurisdiction must submit a haze implementation plan or become subject to a Federal Implementation Plan issued by the EPA that would set the basic program requirements. GRU has installed additional emission control equipment at DH 2 to reduce SO2 and NOx emissions that potentially contribute to regional haze. Recently, emissions modeling was completed for DH 1 to determine its impact on visibility in the Class I areas within 300 km of DH. Results of this modeling confirmed that DH 1 had impacts on the applicable Class I areas below the .05 deciview threshold and therefore is exempt from the BART program associated with the regional haze program. The Reasonable Further Progress (RFP) section of Florida’s regional haze state implementation plan, which has been approved by the EPA, applies to DH 2. GRU has voluntarily requested a cap on SO2 emissions, which provides DH 2 with an exemption from RFP section. A draft permit from the FDEP was issued on June 1, 2012 approving GRU’s requested cap on SO2 emissions, and the final permit was issued on June 26, 2012. Internal Combustion Engine MACT On August 20, 2010, the EPA published a final rule for the National Emissions Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines, which covers existing stationary spark ignition reciprocating internal combustion engines located at major sources of hazardous air pollutant emissions such as power plant sites. This final rule, which became effective on October 19, 2010, requires the reduction of emissions of hazardous air pollutants from covered engines. Several of GRU’s reciprocating engines are covered by this new rule and all are in full compliance.
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Climate Change Control of GHGs such as CO2 is receiving a great deal of attention within the United States. On April 2, 2007, the United Supreme Court issued a decision in Massachusetts v. Environmental Protection Agency, 549 U.S. 497, holding that GHG emissions are air pollutants under the Clean Air Act requiring the EPA to determine whether GHGs pose a threat to health and welfare. On December 15, 2009, the EPA published the final rule for the endangerment finding under the Clean Air Act. In the finding, the EPA declared that the six identified GHGs, CO2, methane, nitrous oxide, hydro-fluorocarbons, perfluorocarbons, and sulfur hexafluoride cause or contribute to global warming, and that the effects of climate change endanger public health and welfare by increasing the likelihood of severe weather events and the other related consequences of climate change (the Endangerment Finding). The issuance of the Endangerment Finding triggered the statutory requirement that the EPA regulate emissions of GHGs as air pollutants from motor vehicles. Such regulations were finalized on April 1, 2010 when the EPA and the United States Department of Transportation issued a joint final rule imposing GHG emission standards on light-duty vehicles (cars and light trucks) (Tailpipe Rule). That regulation took effect on January 2, 2011. On March 29, 2010, the EPA affirmed its position that air pollutant emissions that are actually controlled by regulation under the Clean Air Act under any program must be taken into account when considering permits issued under other programs, such as the PSD permit program (Timing Rule). A PSD permit is required before commencement of construction of new major stationary sources or major modifications of such sources. As a result of this determination, the effect of the new motor vehicle rule is to require the analysis of emissions and control options with respect to GHG emissions from new and modified major stationary sources as of January 2, 2011, which is the date the new major vehicle rule took effect. Permitting requirements for GHGs include, but are not limited to, the application of BACT for GHG emissions, and monitoring, reporting and recordkeeping for GHGs. On May 13, 2010, the EPA issued a final rule for determining the applicability of the PSD program to GHG emissions from major sources. The rule, known as the Tailoring Rule, established criteria for identifying facilities required to obtain PSD permits and the emissions thresholds at which permitting and other regulatory requirements apply. The applicability threshold levels established by this includes both a mass-based calculation and a metric known as the carbon dioxide equivalent, or CO2e, which incorporates the global warming potential for each of the six individual gases that comprise the collective GHG defined in the endangerment finding. As of January 2, 2011, sources that are subject to PSD and/or Title V permits due to their non-GHG emissions (such as fossil fuel based electric generating facilities for their NOx, SO2 and other emissions) will have to address GHG emissions in new permit applications or renewals. Construction or modification of major sources will become subject to PSD requirements for their GHG emissions of the construction or modification results in a net increase in the overall mass of GHF emissions exceeding 75,000 tons per year on a CO2e basis. New and modified major sources required to obtain a PSD permit would be required to conduct a BACT review for their GHG emissions. With respect to Title V requirements, as of January 2, 2011, sources that are required to have Title V permits for non-GHG pollutants will be required to address GHGs as part of their Title V permitting. The 75,000 tons per year CO2e applicability threshold does not apply, so when any source applies for, renews, or revises a Title V permit, the Clean Air Act requirements for monitoring, record keeping and reporting will be included. On June 26, 2012, the United State Court of Appeals for the D.C. Circuit Court upheld the Endangerment Finding and the Tailpipe Rule and found that the petitions did not have standing to challenge the Timing and Tailoring Rules. The court dismissed all petitions for review of the Timing and Tailoring Rules for lack of jurisdiction and denied the petitions for review of the Endangerment Finding and the Tailpipe Rule. On October 15, 2013, following a December 2012 denial of rehearing en banc, the United States Supreme Court granted six of nine petitions for certiorari, agreeing to review the single issue of whether the EPA acted within its authority under the Clean Air Act when it determined that its regulation of GHG emissions from motor vehicles triggered permitting requirements for stationary sources that emit GHGs (Utility Air Regulatory Group v. Environmental Protection Agency, Case No. 12-1146). Petitioners filed briefs in support of their petitions in December 2013. They argued that the EPA’s automatic trigger interpretation was impermissible because the EPA could have avoided the results by interpreting the PSD provisions as applying only to certain pollutants that do not include GHGs, or by reading section 166 of the Clean Air Act as the only mechanism for adding pollutants to the PSD program. In Addition, petitioners argued that the EPA’s tailored regulation of GHGs under the PSD program
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would be an unconstitutional delegation of authority because the Clean Air Act provides no intelligible principle for such an exercise of discretionary power. They also requested that the Supreme Court revisit Massachusetts v. EPA and possibly overrule it if it requires coverage of GHGs under the PSD program. Respondents, EPA and several other states filed response briefs on January 21, 2014. Respondents argued that the EPA’s position of GHG emissions are automatically covered by the PSD program as a result of their regulation under other parts of the Clean Air Act is consistent with the statute and EPA’s long standing interpretation of the statute. Respondents asserted, moreover, that the EPA’s interpretation is consistent with the Supreme Court’s decision in Massachusetts v. EPA that GHGs are air pollutants under the Clean Air Act and its decision in EPA v. Connecticut, that the Clean Air Act displaces federal common law with respect to GHG emissions from stationary sources. The Supreme Court heard oral arguments on February 24, 2014. On June 23, 2014, the Supreme Court issued its opinion in the case, holding that the EPA’s automatic trigger interpretation in the Tailoring Rule that triggered certain permitting requirements for stationary sources based solely in GHG emissions was invalid. The Court also held, however, that regulation of GHG emissions under PSD permits and Title V for facilities constituting major sources for other pollutants under the Clean Air Act, including most electric generating facilities, is permissible. GRU does not expect that the results of this case will provide relief from the Tailoring Rule for any of its planned or existing facilities. However, this decision is not likely to forestall all further legal challenges to EPA regulation of GHG emissions from stationary sources. For example, as discussed further below, the EPA proposed new source performance standards limiting GHG emissions from fossil fuel-fired electric utility generating units that will likely see challenges of its own. On October 30, 2009, the EPA published the final rule for mandatory monitoring and annual reporting of GHG emissions from various categories of facilities including fossil fuel suppliers, industrial gas suppliers, direct GHG emitters (such as electric generating facilities and industrial processes), and manufacturers of heavy-duty and off- road vehicles and engines. This rule does not require controls or limits on emissions, but requires data collection beginning January 1, 2010. GRU’s costs of compliance with these new regulations are not fully known at this time. The requirements for monitoring, reporting and record keeping with respect to GHG emissions from existing units should not have a material adverse effect, based on the Utility’s understanding of the rules at this time. The Utility timely submitted its 2010 and 2011 annual reports of GHG emissions. GRU cannot currently predict how GHG emissions issues will arise in connection with pending or future permit proceedings or whether litigation based on climate change issues will adversely affect the Utility’s construction and development plans. On March 27, 2012, the EPA proposed a rule entitled Carbon Pollution Standard for New Power Plants. The proposed rule would apply only to new fossil fuel-fired EGUs. For purposes of this rule, fossil fuel-fired EGUs include fossil fuel-fired boilers, integrated gasification combing cycle units and stationary combined cycle turbine units that generate electricity for sale and are larger than 25 MW. This rule has no immediate effect on GRU’s facilities or on the GREC biomass facility. On June 25, 2013, President Obama issued a Presidential Memorandum directing the EPA to work expeditiously to complete GHG standards for the power sector. The agency is using its authority under section 111(d) of the Clean Air Act to issue emission guidelines, to address GHG emissions from existing power plants. The Presidential Memorandum specifically directed the EPA to build on state leadership, provide flexibility and take advantage of a wide range of energy sources and technologies towards building a cleaner power sector. The Presidential Memorandum directed the EPA to issue proposed GHG standards, regulations or guidelines, as appropriate, for existing power plants by no later than June 1, 2014, and issue final standards, regulations or guidelines, as appropriate, by no later than June 1, 2015. In addition, the Presidential Memorandum directed the EPA to include in the guidelines addressing existing power plants a requirement that states submit to the EPA the implementation plans required under section 111(d) of the Clean Air Act and its implementing regulations by no later than June 30, 2016, subject to states being able to request more time to submit complete implementation plans and the EPA being able to allow states until June 30, 2017 or June 30, 2018, as appropriate, to submit additional information completing the submittal plan no later than June 30, 2016.
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Accordingly, on June 2, 2014, the EPA released a proposed rule, the Clean Power Plan Rule, that would limit and reduce carbon dioxide emissions from certain fossil fuel power plants, including existing plants. The proposed rule includes target emissions rates for each of the 50 states that are designed to reduce carbon dioxide emissions by 30% of 2005 levels by 2030. While the EPA based its determination on emissions reductions by evaluating technical feasibility costs, size of reductions and technology and by developing building blocks through which reductions can be most easily achieved, including (1) energy efficiency through retrofits at individual facilities. (2) switching dispatch from coal to less carbon intensive natural gas combined cycle units, (3) investments in renewable energy and nuclear and (4) increasing energy efficiency in homes and businesses, the proposed rule provides states with flexibility in designing their plans to meet those emissions, as long as the emission reductions are enforceable, quantifiable and verifiable. The EPA anticipates finalizing the rule no sooner that June 2015, and plans to provide states with on to three years after that to develop the plans. While it is unclear what form the EPA’s rule will take if and when finalized, this rule could have a material effect on GRU’s operations and costs. It is also unclear what effect, if any, the Supreme Court’s recent decision in Utility Air Regulatory Group v. Environmental Protection Agency will have on the proposed Clean Power Plan Rule. GRU is currently analyzing the proposed rule and the Supreme Court’s recent decision, and is continuing to follow this and related activities very closely. Coal Ash On May 4, 2010, the EPA released the text of a proposed rule describing two possible regulatory options it is considering under the Resource Conservation and Recovery Act (RCRA) for the disposal of coal ash generated from the combustion of coal by electric utilities and independent power producers. Under either option, the EPA would regulate the construction of impoundments and landfills, and seek to ensure both the physical and environmental integrity of disposal facilities. Under the first proposed regulatory option, the EPA would list coal ash destined for disposal in landfills or surface impoundments as special wastes subject to regulation under Subtitle C of RCRA. Subtitle C regulations set forth the EPA’s hazardous waste regulatory program, which regulate the generation, handling, transport and disposal of wastes. The proposed rule would create a new category of waste under Subtitle C, so that coal ash would not be classified as a hazardous waste, but would be subject to many regulatory requirements applicable to such wastes. Under this option, coal ash would be subject to technical and permitting requirements from the point of generation to final disposal. Generators, transporters and treatment, storage and disposal facilities would be subject to federal requirements and permits. The EPA is considering imposing disposal facility requirements such as liners, groundwater monitoring, fugitive dust controls, financial assurance, corrective action, closure of units and post closure care. This first option also proposed requirements for dam safety and stability for surface impoundments, land disposal restrictions, treatment standards for coal ash, and a prohibition on the disposal of treated coal ash below the natural water table. The first option would not apply to certain beneficial reuses of coal ash. Under the second proposed regulatory option, the EPA would regulate the disposal of coal ash under Subtitle D of RCRA, the regulatory program for non-hazardous solid wastes. Under this option, the EPA is considering issuing national minimum criteria to ensure the safe disposal of coal ash, which would subject disposal units to location standards, composite liner requirements, groundwater monitoring and corrective action standards for release, closure and post-closure care requirements, and requirements to address the stability of surface impoundments. Existing surface impoundments would not have to close or install composite liners and could continue to operate for their useful life. The second option would not regulate the generation, storage or treatment of coal ash prior to disposal, and no federal permits would be required. The proposed rule also states that the EPA is considering listing coal ash as a hazardous substance under the Comprehensive Environmental Response, Comprehensive and Liability Act of 1980, as amended (CERCLA, which is commonly known as Superfund), and includes proposals for alternative methods to adjust the statutory reportable quantity for coal ash. The extension of CERCLA to coal ash could significantly increase the Utility’s liability for cleanup of past and future coal ash disposal. On January 29, 2014, the EPA agreed to finalize the first ever federal regulations for the disposal of coal ash by December 19, 2014, according to a settlement in a lawsuit brought by environmental and public health groups and a Native American tribe. The EPA Administrator, Gina McCarthy, signed the Disposal of Coal Combustions Residuals from Electric Utilities final rule on December 19, 2014, and it was submitted for publication in the
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Federal Register. The rule is effective six months after publication in the Federal Register. The rule established technical requirements for coal combustion residuals landfills and surface impoundments under Subtitle D of the RCRA. GRU is unable to determine the effects of this rule at this time. In August of 2012, the Process Water Ponds at DH, which receive some fly and bottom ash, were inspected by a contractor at the request of the EPA. This effort was part of a federal initiative to inspect coal combustion residual (CCR) impoundments following a dike failure at a Tennessee Valley Authority facility in 2008. A final report was issued on June 2, 2014. The report includes a specific condition rating for the CCR management units and recommendations and actions that the contractor for the EPA recommended be undertaken to ensure the stability of the CCR impoundments located at DH. GRU submitted to the EPA a work scope response to the recommendations which was accepted by the Agency on October 29, 2014 Additionally, numerous monitoring wells, in place since initial construction, provide assurance of the containment, or structural stability of the ponds. The results of routine groundwater sampling are submitted to the FDEP. Fly ash from the coal combustion process is typically transported from the site for beneficial commercial uses. Currently, beneficial use of flue gas scrubber by-product is limited; the majority is deposited in the onsite landfill. GRU adheres to a best management practices plan for ash and by-product handling deposited in the onsite landfill. Storage Tanks GRU is required to demonstrate financial responsibility for the costs of corrective actions and compensation of third-parties for bodily injury and property damage arising from releases of petroleum products and hazardous substances from certain underground and above ground storage tanks system. GRU has eleven fuel oil storage tanks. The South Energy Center has two underground distillate No. 2 oil tanks, the JRK Station has four above ground distillate oil tanks and two above ground No. 6 oil tanks, and DH has one above ground distillate and two above ground No. 6 oil tanks. All of GRU’s fuel storage tanks have secondary containment and/or interstitial monitoring and the Utility is insured for the requisite amounts. Nuclear Decommissioning The NRC has promulgated regulations mandating the establishment of funded reserves to assure financial capability for the eventual decommissioning of licensed nuclear facilities. GRU and several other municipal utilities have entered into an agreement with FMPA wherein FMPA has engaged a fiduciary to act as trustee of the reserve to fund the participants’ share of decommissioning CR-3. The external fund is accruing from revenues in amounts currently estimated to be sufficient to pay for decommissioning costs. However, actual decommissioning costs may vary due to changes in the assumed dates of decommissioning, NRC funding requirements, regulatory requirements, cost of labor and equipment or other assumptions used in determining the estimates. Superfund and Remediation Sites CERCLA, as well as parallel state statutes, require cleanup of sites from which there has been a release or threatened release of hazardous substances and authorizes the EPA to take any necessary response action at Superfund sites, including ordering a potentially responsible party (PRP) liable for the release to take or pay for such actions. PRPs are broadly defined under CERCLA to include past and present owners and operators of, as well as generators of wastes sent to a site. GRU is a PRP at the Bill Johns Waste Oil Site in Jacksonville, Florida under these statutes. GRU’s liability at this site was incurred through the improper management of waste oils by operators providing services under contract to the Utility. GRU is no more than a de minimis party at this site and has already resolved its liability with the EPA and its currently working with the State to resolve State liability issues. GRU also was a PRP at the following sites: Rose Chemical in Holden, Missouri; Peak Oil in Tampa, Florida; PCB Treatment, Inc. in Kansas City, Missouri; Osage Metals in Kansas City, Missouri; and Mowbray Engineering in Greenville, Alabama. GRU’s liability for these sites has been resolved through settlements reached with the EPA and, in the case of Rose Chemical, the Rose Chemical Steering Committee. Management is not aware of any actions by private third-parties which have been brought or are imminent against the parties that contributed wastes to any of the sites described above. The extent of any potential third-party liability cannot be predicted at this time.
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Several site investigations have been completed at the JRK Station, most recently in 2011. According to previous assessments, the horizontal extent of soils impacted with No. 6 fuel oil extends from the northern containment wall of the above-ground storage tanks (ASTs) to the wastewater filter beds and from the old plant building to Sweetwater Branch Creek. The results of the most recent soil assessment document the presence of benzo(a)pyrene in one soil sample at a concentration greater than its default commercial/industrial direct exposure based soil cleanup target levels (SCTLs). Four of the soil samples contained benzo(a)pyrene equivalents at concentrations greater than its default commercial/industrial direct exposure based SCTLs. In addition, two of the soil samples contained total recoverable petroleum hydrocarbons (TRPH) at concentrations greater than its default commercial/industrial direct exposure based SCTLs. In the Site-Wide Monitoring Report dated March 24, 2011, measurable free product was detected in four wells. An inspection in April 2013 showed that groundwater contains four of the polynuclear aromatic hydrocarbons (PAHs) (benzo(a)anthracene, benzo(a)pyrene, benzo(b)fluoranthene, and dibenzo(a,h)anthracene) at concentrations greater than their groundwater cleanup target levels (GCTLs). With the exception of benzo(a)pyrene, the concentration of the remainder of these parameters did not exceed their Natural Attenuation Default Concentrations. The groundwater quality data reported in the 2011 Site-Wide Groundwater Monitoring Report documents that groundwater quality meets applicable GCTLs at the locations sampled. It is likely that groundwater quality impacts exist in the area where residual number 6 Fuel Oil is present as a non-aqueous phase liquid. In August 2013, the Utility submitted a no further action proposal to the FDEP requesting that the site be granted a no further action status based on an evaluation of the soil and groundwater data with respect to site conditions and operations. GRU is currently responding to comments raised by the FDEP. Water Use Restrictions Pursuant to Florida law, a water management district in Florida may mandate restrictions on water use for non- essential purposes when it determines such restrictions are necessary. The restrictions may either be temporary or permanent. The St. Johns River Water Management District (SJRWMD) has mandated permanent district-wide restrictions on residential and commercial landscape irrigation. The restrictions limit irrigation to no more than two days per week during Daylight Savings Time, and one day per week during Eastern Standard Time. The restrictions apply to centralized potable water as provided by the Utility as well as private wells. All irrigation between the hours of 10:00 a.m. and 4:00 p.m. is prohibited. In addition, in April 2010, the County adopted, and the City subsequently opted into, an Irrigation Ordinance that codified the above-referenced water restrictions which promote and encourage water conservation. County personnel enforce this ordinance, which further assists in reducing water use and thereby extending the Utility’s water supply. The SJRWMD and the Suwannee River Water Management District (SRWMD) each have promulgated regulations referred to as Year-Round Water Conservation Measures, for the purpose of increasing long-term water use efficiency through regulatory means. In addition, the SJRWMD and the SRWMD each have promulgated regulations referred to as a Water Shortage Plan, for the purpose of allocating and conserving the water resource during periods of water shortage and maintaining a uniform approach towards water use restrictions. Each Water Shortage Plan sets forth the framework for imposing restrictions on water use for non-essential purposes when deemed necessary by the applicable water management district. On August 7, 2012, in order to assist the SJRWMD and the SRWMD in the implementation and enforcement of such Water Conservation Measures and such Water Shortage Plans, the Board of County Commissioners of Alachua County enacted an ordinance creating year-round water conservation measures and water shortage regulations (County Water Use Ordinance), thereby making such Water Conservation Measures and such Water Shortage Plans applicable to the unincorporated areas of the County. On December 20, 2012, the City Commission adopted a resolution to opt into the County’s year round water conservation measures and water shortage regulations ordinances in order to give the Alachua County Environmental Protection Department the authority to enforce water shortage orders and water shortage emergencies within the City.
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September 30, 2014
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GRU cannot predict what effects these factors will have on the business, operations, and financial condition of the Utility, but the effects could be significant. Manufactured Gas Plant Gainesville’s natural gas system originally distributed blue water gas, which was produced in town by gasification of coal using distillate oil. Although manufactured gas was replaced by pipeline gas in the mid-1950’s, coal residuals and spilt fuel contaminated soils at and adjacent to the manufactured gas plant (MGP) site. When the natural gas system was purchased, GRU assumed responsibility for the investigation and remediation of environmental impacts related to the operation of the former MGP. GRU has pursued recovery for the MGP from past insurance policies and, to date, has recovered $2.2 million from such policies. Site investigations on properties affected by MGP residuals have been completed and the Utility has completed limited removal actions. GRU has received final approval of its proposed overall Remedial Action Plan which will entail the excavation and landfilling of impacted soils at a specially designed facility. This plan was implemented pursuant to a Brownfield Site Rehabilitation Agreement with the State. Following remediation, the property will be redeveloped by the City as a park that will have stormwater ponds, nature trails, and recreational space, all of which were considered in the remediation plan’s design. The duration of the groundwater monitoring program will be for the duration of the permit, and that timeframe is open to the results of what the sampling data shows. Based upon GRU’s analysis of the cost to clean up this site, GRU has accrued a liability to reflect the costs associated with the cleanup effort. During fiscal years 2014 and 2013, expenditures which reduced the liability balance were approximately $900,000 and $600,000, respectively. In accordance with GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, the reserve was increased $100,000 due to new project estimates and probabilities, bringing the reserve balance at September 30, 2014, to approximately $800,000. GRU is recovering the costs of this cleanup through customer charges. A regulatory asset was established as a deferred charge in the accompanying statements of net position to represent the recovery of remediation costs from customers. Fiscal 2014 billings were $1.1 million. The regulatory asset balance was $16.6 million as of September 30, 2014. Although some uncertainties associated with environmental assessment and remediation activities remain, GRU believes that the current provision for such costs is adequate and additional costs, if any, will not have an adverse material effect on GRU’s financial position, results of operations, or liquidity. Operating Leases GRU leases various equipment, facilities and property under operating leases that are cancelable only under certain circumstances. Rental costs under operating leases for the year ended September 30, 2014 were $800,000.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
77
Future minimum rental payments for various operating leases are:
Years Ending Future Minimum September 30: Rental Payments
2015 60,174$ 2016 58,796 2017 47,085 2018 47,085 2019 9,794
2020-2024 30,250 2025-2029 30,250 2030-2034 30,250 2035-2039 30,250 2040-2044 30,250 2045-2049 12,100
386,284$
NOTE 12. LEASE REVENUE
GRU leases communication tower antenna space to various wireless communications service providers on eleven communications towers and two water towers throughout its service territory. Two of the five transmitter sites for the countywide public safety radio system are also located on these communications towers. GRU also receives payments annually in advance for land leased to GREC for the biomass power plant site. Future minimum rental revenue for various operating leases are:
Future Mini mum
Year endi ng Rental September 30: Revenue
2015 1,234,180$ 2016 1,161,073 2017 1,115,886 2018 1,115,886 2019 1,042,542
2020-2024 3,936,412 2025-2029 1,912,174 2030-2034 508,871 2035-2039 500 2040-2044 500 2045-2049 500 2050-2054 500 2055-2059 200
12,029,224$
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
78
NOTE 13 – INVESTMENT IN THE ENERGY AUTHORITY GRU has an equity investment in The Energy Authority (TEA), a power marketing corporation comprised of eight municipal utilities as of December 31, 2014: MEAG Power, JEA (Florida), South Carolina Public Service Authority, Nebraska Public Power District, GRU, City Utilities of Springfield (Missouri), Public Utility District No. 1 of Cowlitz County (Washington), and American Municipal Power, Inc. (Ohio). TEA provides energy products and resource management services to equity members and non-members and allocates transaction savings and operating expenses to equity members pursuant to Settlement Procedures under the Operating Agreement. In the Statement of Revenues, Expenses, and Changes in Net Position, GRU’s sales to and purchases from TEA are recorded in sales and service charges and operations and maintenance, respectively. For the year ended September 30, 2014, sales to TEA totaled $1.6 million and purchases from TEA totaled $13.2 million. GRU’s equity interest was 5.6% for fiscal year 2014, and GRU accounted for this investment using equity accounting. As of September 30, 2014, GRU’s investment in TEA was $2.7 million. Through a combination of agreements, GRU guarantees credit received by TEA up to $13.3 million as of September 30, 2014. TEA evaluates its credit needs periodically and requests equity members to adjust their guarantees accordingly. The guarantee agreements are intended to provide credit support for TEA when entering into transactions on behalf of equity members. Such guarantees are within the scope of GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, and would require the equity members to make payments to TEA’s counterparties if TEA failed to deliver energy, capacity or natural gas as required by contract, or if TEA failed to make payment for the purchases of such commodities. If guarantee payments are required, GRU has rights with other equity members that such payments be apportioned based on certain criteria. The guarantees generally have indefinite terms, however, GRU can terminate its guarantee obligations by providing notice to counterparties and others, as required by the agreements. Such terminations would not pertain to any transactions TEA entered into prior to notice being given. As of September 30, 2014, GRU had not recorded a liability related to these guarantees. TEA’s accounting records are maintained in conformity with the pronouncements of the GASB. The table below contains unaudited condensed financial information for TEA for the period ended September 30, 2014.
Condensed Statement of Operations: (in thousands) Total Revenue 1,752,124$ Total Cost of Sales and Expense (1,647,387) Operating Income 104,737 Nonoperating (Expens e) (40) Change in Net Pos ition 104,697$
Condensed Balance Sheet: Assets : Current Assets 148,981$ Other Assets 15,497 Total Assets 164,478$
Liabilities: Current Liabilities 116,005$ Noncurrent Liabilities 22 Total Liabilities 116,027$ Total Net Pos ition 48,451 Total Liabilities and Net Position 164,478$
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
79
As of September 30, 2014, GRU’s accounts receivable due from TEA totaled $90,000. TEA issues stand-alone audited financial statements on a calendar year basis which may be obtained by writing to 76 South Laura Street; Suite 1500; Jacksonville, Florida 32202. NOTE 14 – CONDUIT DEBT From time to time, the City has issued Industrial Development Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial facilities deemed to be in the public interest. These bonds are secured by the financed property and are payable solely by the private-sector entity served by the bond issuance. There is no obligation on the part of the City, County, State, or any political subdivision for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2014, there was one Industrial Revenue bond outstanding, with an aggregate principal amount payable of $5,000,000. NOTE 15 – RESTATEMENT The restatement for the Governmental Activities resulted from the implementation of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, which required the City to expense debt issuance costs beginning in Fiscal Year 2014 and to restate beginning net position to reflect the retroactive implementation of that concept, effectively writing off the deferrals previously reported as an asset. The restatement of beginning net position of governmental activities of $(1,619,106) was entirely due to this implementation. The restatements for business-type activities and the Utility Fund resulted from corrections of statement of net position accounts to actual balances and corrections of various revenues and expenses. Beginning net positions were restated as shown below for fiscal year 2014:
Business-Ty p e Activities Utility Fund
Net p osition, beginning of y ear, as p reviously rep orted 564,475,800$ 477,815,181$ Restatements:
Electric 1,383,075 1,383,075 Water 63,312 63,312 Wastewater (1,009,508) (1,009,508) Gas (2,231,228) (2,231,228) GRUCom (676,624) (676,624)
Net p osition, beginning of y ear, as restated 562,004,827$ 475,344,208$ NOTE 16 – SUBSEQUENT EVENTS Disability Pension Plan The Disability Pension fund has been over funded for a number of years and due to legal constraints of the trust fund the assets could not be reallocated without dissolving the fund and reopening in another trust fund. During FY15, the City is closing down the Disability Pension Plan and is moving the assets equal to 150% of the Disability Plan’s actuarial liability with the remaining assets to be returned to the General Fund and GRU. Commercial Paper Issuance On December 16, 2014, GRU issued $8 million of Utilities System Commercial Paper Notes, Series D (Federally Taxable) to provide funds for the cost of acquisition and construction of certain improvements to the GRUCom system. Following this issuance, the availability of the Series D Notes was reduced to $17 million from $25 million available as of September 30, 2014. Liquidity support for the Series D Notes is provided by State Street Bank and Trust Company under an agreement effective August 28, 2014, which extends through August 28, 2017.
CITY OF GAINESVILLE, FLORIDA Notes to Financial Statements
September 30, 2014
80
Bond Issuance – General Government In December 2014, the City issued Capital Improvement Revenue Bonds, Series 2014 to assist in the financing of several capital projects. The Bonds amount total $14,535,000 payable with Non-Ad Valorem Revenues commencing on April 15, 2015 with final payment due October 1, 2034. Interest varies from 2.0% to 5.0%. Bond Issuance - Utility On December 19, 2014, GRU issued two series of 2014 Utilities System Revenue Bonds. The 2014 Series A Bonds in the amount of $37,980,000 were issued to (a) provide funds for the payment of the cost of acquisition and construction of certain improvements to the System, and (b) pay costs of issuance of the 2014 Series A Bonds. These bonds mature at various dates beginning October 1, 2015, from October 1, 2021 to October 1, 2034, October 1, 2039, and October 1, 2044. The bonds maturing prior to October 1, 2024 are not subject to redemption prior to maturity. The bonds maturing after October 1, 2025 are subject to redemption prior to maturity at the option of GRU on and after October 1, 2024, as whole or in part at any time, at a redemption price plus interest so specified. The 2014 Series B Bonds in the amount of $30,970,000 were issued to (a) provide funds to refund $12,725,000 in aggregate principal amount of a portion of the 2005 Series A Bonds; (b) provide funds to refund $20.0 million in aggregate principal amount of a portion of the 2008 Series A Bonds; and (c) pay costs of issuance of the 2014 Series B Bonds. These bonds mature at various dates from October 1, 2015 through October 1, 2020, from October 1, 2029 to October 1, 2030, and October 1, 2036. The bonds maturing prior to October 1, 2024 are not subject to redemption prior to maturity. The bonds maturing after October 1, 2025 are subject to redemption prior to maturity at the option of GRU on and after October 1, 2024, as whole or in part at any time, at a redemption price plus interest so specified. Subsequent Liquidity Facility The December 31, 2014 expiration of the 2012 Series B Standby Bond Purchase Agreement (SBPA) with J.P. Morgan Chase Bank NA was extended by 60 days to February 28, 2015. On January 15, 2015, GRU closed on the substitution of this facility with a facility from Sumitomo Mitsui Banking Corporation (SMBC), with an effective date of February 2, 2015. The 2012 Series B Bonds will bear interest on a weekly mode under SMBC, whereas under the J.P. Morgan Chase Bank NA facility it bore interest on a daily mode.
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ORIGINAL FINAL ACTUAL ENCUMBRANCES BASIS (NEGATIVE)
REVENUES Taxes 39,884,830$ 39,893,966$ 39,141,991$ -$ 39,141,991$ (751,975)$ Licenses and permits 947,668 947,668 950,644 - 950,644 2,976 Intergovernmental 11,400,172 11,400,172 11,847,791 - 11,847,791 447,619 Charges for services 13,587,038 13,549,590 13,697,386 - 13,697,386 147,796 Fines and forfeitures 1,301,400 1,301,400 1,360,788 - 1,360,788 59,388 Miscellaneous 1,497,598 1,422,712 1,911,866 - 1,911,866 489,154
TOTAL REVENUES 68,618,706 68,515,508 68,910,466 - 68,910,466 394,958
EXPENDITURES Current: General government 15,722,381 15,827,489 14,867,086 61,305 14,928,391 899,098 Public safety 55,811,095 56,369,437 55,009,624 32,252 55,041,876 1,327,561 Physical environment 183,324 183,324 181,997 - 181,997 1,327 Transportation 11,982,612 12,084,210 11,159,632 13,943 11,173,575 910,635 Economic environment 421,489 436,551 398,114 - 398,114 38,437 Human services 125,021 145,221 112,518 - 112,518 32,703 Culture and recreation 6,881,517 6,800,161 6,776,558 958 6,777,516 22,645
TOTAL EXPENDITURES 91,127,439 91,846,393 88,505,529 108,458 88,613,987 3,232,406
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (22,508,733) (23,330,885) (19,595,063) (108,458) (19,703,521) 3,627,364
OTHER FINANCING SOURCES (USES) Transfers in 38,637,889 38,649,211 37,863,511 - 37,863,511 (785,700) Transfers out (16,217,156) (16,809,258) (16,640,920) - (16,640,920) 168,338
TOTAL OTHER FINANCING SOURCES (USES) 22,420,733 21,839,953 21,222,591 - 21,222,591 (617,362)
NET CHANGE IN FUND BALANCES (88,000)$ (1,490,932)$ 1,627,528$ (108,458)$ 1,519,070$ 3,010,002$
BUDGETED AMOUNTS
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
81
CITY OF GAINESVILLE, FLORIDA NOTES TO SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL GENERAL FUND
SEPTEMBER 30, 2014
Annual budgets are legally adopted for all governmental funds other than Capital Projects Funds and certain Special Revenue Funds (such as grant funds and tax increment funds), which are appropriated on a project-length basis. Budgets are controlled at the department level throughout the year and total expenditures plus encumbrances may not legally exceed appropriations for each budgeted fund. The Special Revenue Funds which are budgeted annually are the Community Development Block Grant Fund, the Urban Development Action Grant Fund, the Home Grant Fund, the Cultural and Nature Projects Fund, the State Law Enforcement Contraband Forfeiture Fund, the Federal Law Enforcement Contraband Forfeiture Fund, the Police Billable Overtime Fund, the Community Redevelopment Agency Fund, the Economic Development Fund, the Evergreen Cemetery Trust Fund, the School Crossing Guard Trust Fund and the Art in Public Places Trust Fund. All other Special Revenue Funds are appropriated on a project-length, multi-year basis.
Budget amounts reflected in the accompanying schedule incorporate all budgetary amendments (including supplemental appropriations) to the original budget. Budget amendments are approved by the City Commission during the year, with a final amendatory ordinance approved after the end of the fiscal year.
The City Manager can approve budget transfers within and between operating departments and divisions of the same fund. All interfund budget transfers require prior approval of the City Commission, as do transfers from contingency funds exceeding $25,000. Transfers concerning personnel can be made as long as the total number of permanent positions approved in the budget is not exceeded.
Budget appropriations lapse at year-end. Encumbrances at year-end do not represent GAAP expenditures or liabilities but represent budgetary accounting controls. All governmental fund budgets are maintained on the modified accrual basis of accounting except that budgetary basis expenditures include purchase orders and contracts (encumbrances) issued for goods or services not received at year-end.
The actual results of operations are presented in accordance with GAAP, and the City does not recognize encumbrances as expenditures until the period in which the goods or services are actually received and a liability is incurred. It is necessary to include the budgetary encumbrances to reflect actual revenues and expenditures on a budgetary basis consistent with the City's legally adopted budget. The following fiscal year's budget is amended to reappropriate the fund balance represented by encumbrances.
As illustrated on the previous page, on the budgetary basis, total expenditures were $3,232,406 less than the final budget. Revenues were recognized in an amount $394,958 greater than the final budget. Including other financing sources and uses, the General Fund fund balance increased by $3,010,002 more than was budgeted.
82
2014
Total pension liability Service costs 6,612,646$ Interest 36,171,225 Differences between expected and actual experience 1,105,967 Benefit payments, including refunds of employee contributions (31,819,142) Net Change in total pension liability 12,070,696 Total pension liability-beginning 423,997,175 Total pension liability-ending (a) 436,067,871$
Plan fiduciary net position Employer contributions 11,519,431 Employee contributions 4,260,476 Net investment income 34,176,892 Benefit payments, including refunds of employee contributions (26,161,924) Administrative expense (613,886) Net change in plan fiduciary net position 23,180,989 Plan fiduciary net position-beginning 324,299,576
Plan fiduciary net position-ending (b) 347,480,565$
City's net pension liability-ending (a)-(b) 88,587,306$
Plan fiduciary net position as a percentage of the total pension liability 79.68%
Annual covered payroll 81,654,532$
Net pension liability as a percentage of covered employee payroll 108.49%
Notes to Schedule: Benefit Payments in Total Pension Liability include an interest calculation. This amount does not represent actual Benefit Payments as shown in the changes in Plan fiduciary net position. The schedule will present ten years comparative data in the future. GASB 67 was implemented in FY 2014.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF CHANGES IN PENSION FUND NET PENSION LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2014 EMPLOYEES' PENSION FUND
83
2014
Total pension liability Service costs 251,104$ Interest 209,093 Differences between expected and actual experience (24,466) Benefit payments, including refunds of employee contributions (217,981) Net Change in total pension liability 217,750 Total pension liability-beginning 2,238,098 Total pension liability-ending (a) 2,455,848$
Plan fiduciary net position Employer contributions 269,682 Net investment income 659,652 Benefit payments, including refunds of employee contributions (209,268) Administrative expense (68,508) Net change in plan fiduciary net position 651,558 Plan fiduciary net position-beginning 7,789,847
Plan fiduciary net position-ending (b) 8,441,405$
City's net pension liability (asset) -ending (a)-(b) (5,985,557)$
Plan fiduciary net position as a percentage of the total pension liability 343.73%
Annual covered payroll 81,654,532$
Net pension liability as a percentage of covered employee payroll -7.33%
Notes to Schedule: Benefit Payments in Total Pension Liability include an interest calculation. This amount does not represent actual Benefit Payments as shown in the changes in Plan fiduciary net position. The schedule will present ten years comparative data in the future. GASB 67 was implemented in FY 2014.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF CHANGES IN PENSION FUND NET PENSION LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2014 DISABILITY PLAN
84
2014
Total pension liability Service costs 3,730,365$ Interest 19,299,422 Changes of assumptions 2,523,158 Benefit payments, including refunds of employee contributions (12,898,782) Net change in total pension liability 12,654,163 Total pension liability-beginning 233,261,469 Total pension liability-ending (a) 245,915,632$
Plan fiduciary net position Employer contributions 3,855,020 Employee contributions 2,067,685 State contributions 1,259,995 Net investment income 21,911,535 Benefit payments, including refunds of employee contributions (12,898,782) Administrative expense (609,264) Net change in plan fiduciary net position 15,586,189 Plan fiduciary net position-beginning 201,461,721
Plan fiduciary net position-ending (b) 217,047,910$
City's net pension liability-ending (a)-(b) 28,867,722$
Plan fiduciary net position as a percentage of the total pension liability 88.26%
Annual covered payroll 24,364,333$
Net pension liability as a percentage of covered employee payroll 118.48%
Notes to Schedule: Changes of Assumptions: The investment rate of return was changed from 8.4% to 8.3% for 2014. The schedule will present ten years comparative data in the future. GASB 67 was implemented in FY 2014.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF CHANGES IN PENSION FUND NET PENSION LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2014 POLICE OFFICERS' AND FIREFIGHTERS' CONSOLIDATED RETIREMENT FUND
85
2014 2013
Actuarially determined contribution 12,700,223$ 10,927,391$
Contributions in relation to the actuarially determined contribution 11,519,431 10,206,334
Contribution deficiency (excess) 1,180,792 721,057
Covered payroll 81,654,532 80,365,984
Contributions as percentage of covered payroll 14.11% 12.70%
Notes to Schedule: Methods and assumptions used to determine contribution rates Actuarial cost method Individual entry age, level percent of pay Amortization method Level percentage, closed Remaining amortization period 21 to 30 years based on year established; gains/losses, assumption
plan changes over 30 years from inceptions Asset valuation method Actuarial value, based on 5-year recognition of returns greater or less
than the assumed investment return Inflation rate 3.75% Future rate of growth in 4.50% valuation payroll Investment return rate 8.40% Salary increase rate 3.75% to 7.00% Retirement rates Schedule of probabilities based on age and service, increasing as age
and service increase Mortality rates RP-2000 mortality table
The schedule will present ten years comparative data in the future. GASB 67 was implemented in FY 2014.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF EMPLOYEES' PENSION FUND EMPLOYER CONTRIBUTIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
86
2014 2013
Actuarially determined contribution -$ 312,021$
Contributions in relation to the actuarially determined contribution 269,682 278,924
Contribution deficiency (excess) (269,682) 33,097
Covered payroll 81,654,532 80,365,984 Contributions as percentage of covered payroll 0.33% 0.35%
Notes to Schedule: Methods and assumptions used to determine contribution rates Actuarial cost method Aggregate Amortization method Level percentage, closed Remaining amortization period N/A Asset valuation method Market Value Inflation rate 3.75% Future rate of growth in 4.50% valuation payroll Investment return rate 8.40% Salary increase rate 3.75% to 7.00% Retirement rates Schedule of probabilities based on age and service, increasing as age
and service increase Mortality rates RP-2000 mortality table
The schedule will present ten years comparative data in the future. GASB 67 was implemented in FY 2014.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF DISABILITY FUND EMPLOYER CONTRIBUTIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
87
2014
Actuarially determined contribution 3,855,020$
Contributions in relation to the actuarially determined contribution 3,855,020
Contribution deficiency (excess) -
Covered payroll 24,364,333 Contributions as percentage of covered payroll 15.82%
Notes to Schedule: Methods and assumptions used to determine contribution rates Actuarial cost method Entry age normal Amortization method Level percentage, closed Remaining amortization period 30 years Asset valuation method Actuarial value Inflation rate 3.00% Future rate of growth in valuation payroll 3.22% Investment return rate 8.50%, net of investment expenses Salary increase rate 4.00% to 7.00% Retirement rates Schedule of probabilities based on age and service, increasing as age
and service increase Mortality rates RP-2000 combined fully generational mortality table with
blue collar adjustment
The schedule will present ten years comparative data in the future. GASB 67 was implemented in FY 2014.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF POLICE OFFICERS' AND FIREFIGHTERS' CONSOLIDATED
FOR THE YEAR ENDED SEPTEMBER 30, 2014 PENSION FUND EMPLOYER CONTRIBUTIONS
88
FY General Pension Plan Disability Plan Consolidated Plan
2014 10.61% 10.61% 11.01%
Note to Schedule:
The schedule will present ten years comparative data in the future. GASB 67 was implemented
in FY 2014.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF ANNUAL MONEY-WEIGHTED RATE OF RETURN
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Annual Money‐Weighted Rate of Return on Pension Plan Investments
89
Actuarial Actuarial Accrued UAAL as %
Actuarial Value of Liability (AAL) Unfunded Covered of covered Valuation Assets Entry Age (UAAL) Funded ratio Payroll payroll
Date (a) (b) (b) - (a) (a/b) ( c ) (b-a)/c
09/30/14 59,867,314$ 66,343,732$ 6,476,418$ 90.24% 126,000,000$ 5.14%
09/30/13 57,374,787 65,560,356 8,185,569 87.51% 124,000,000 6.60%
09/30/12 50,448,282 61,493,434 11,045,152 82.04% 122,000,000 9.05%
Notes to Schedule:
Valuation Date 09/30/14
Actuarial Cost Method Entry Age Normal
Amortization Method Level percent
Asset Valuation Method Market value
Actuarial Assumptions: Investment Rate of Return* 8.40% per annum
Health Care Cost Trend Rate 6%
* Includes inflation of 3.75%.
FOR THE YEAR ENDED SEPTEMBER 30, 2014
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF FUNDING PROGRESS
OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
90
NONMAJOR GOVERNMENT FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are restricted to expenditures for specific purposes. The City maintains the following Special Revenue Funds:
Community Development Block Grant Fund - to maintain unique accounting requirements for Federal funds being used to refurbish and rehabilitate deteriorated neighborhoods.
Urban Development Action Grant Fund - to account for Urban Development Action Grant Funds loaned to a local developer for construction of a downtown-parking garage. The loan is to be repaid based on provisions of an agreement.
Home Grant Fund - to maintain unique accounting requirements for HOME Investment Partnerships Program Grant funds. This program was created under Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990. Cultural and Nature Projects Fund - to account for revenues and expenditures associated with various cultural activities provided for the benefit of the citizens of the City. Financing is provided by various charges for services and miscellaneous revenue sources. State Law Enforcement Contraband Forfeiture Fund - to account for law enforcement related projects funded by the proceeds from state confiscated property forfeited under the provisions of Sections 932.701 through 932.704, Florida Statutes.
Federal Law Enforcement Contraband Forfeiture Fund - to account for law enforcement related projects funded by the proceeds from federal confiscated property forfeited under the provisions of USC 21 SS 881 and U.S. Department of Justice, Guide to Equitable Sharing of Federally Forfeited Property for State and Local Law Enforcement Agencies. Police Billable Overtime Fund – to account for revenues and expenditures associated billable overtime that the Police Department performs outside of their regular duties for both City events and non-City events. Fees are set with the intent to cover variable costs including overtime pay and benefits. Community Redevelopment Agency Fund – to account for the administrative operations of the City’s four tax increment districts. This fund is a component unit of the City and is reported as a blended component unit in the nonmajor governmental funds section. American Recovery & Reinvestment Act (ARRA) Grants Fund – to account for multiple ARRA grants, which are restricted in purpose and are segregated from other grants to provide for more transparent reporting of stimulus funding. Street, Sidewalk and Ditch Improvement Fund - to account for the provision and financing of paving and ditch improvement projects. Financing is provided by assessments levied against property owners in a limited geographical area as improvement projects are approved.
Economic Development Fund - to account for revenue and expenditures made to promote economic development. Includes operating expense and rental revenue generated by the GTEC (Gainesville Technology Incubator) facility.
Miscellaneous Gifts and Grants Fund - to account for a large number of miscellaneous gifts and grants, which are single purpose in nature and require minimal special accounting features. Transportation Concurrency Exception Area Fund – to account for revenue and expenditures generated in connection with transportation improvements made in conjunction with new developments. Funds are provided by real estate developers to mitigate the development’s impact on transportation in accordance with Ordinance #981310. Water and Wastewater Surcharge Infrastructure Fund – to account for surcharge collections and interest earnings which are to be expended on related infrastructure improvements for water and wastewater. Half of the funds collected are transferred to this fund. Resolution #030223 specifies that the expenditures are to be used as follows: 20% health/safety/environmental projects. 20% affordable housing projects, and 60% programmed extension projects. Supportive Housing Investment Partnership (SHIP) Fund – to account for documentary stamp proceeds from real estate transactions to be used as funding for the entitlement program. Expenditures made by the City include grants to improve housing options for lower income and less advantaged citizens.
Small Business Loan Fund – to account for revenue and expenditures associated with revolving loan funds to local small businesses. This fund was established in fiscal year 2005 with the funds received through an insurance settlement associated with the United Gainesville Community Development Corporation. Miscellaneous Special Revenue Fund – to account for several miscellaneous programs that are of small dollar value and are restricted to a specific project or activity. Tourist Destination Enhancement Fund – to account for Tourist Development tax dollars passed through from the County and awarded as grants to artistic, eco-tourism and new program projects that will promote tourism in the area. Proportionate Fair Share Program Fund – to account for developer contributions and related projects associated with proportionate fair share agreements in accordance with the City’s Land Development Code’s Proportionate Fair-Share Program, as authorized by FS 163.3180, allowing developments outside of the TCEA to proceed by contributing towards the cost of traffic management system and transit improvements. Tourist Product Development Fund-FY12 - to account for Tourist Product Development tax dollars passed through from the County and awarded as grants to artistic, eco-tourism and new program projects that will promote tourism in the area during fiscal year 2012. The City’s Parks, Recreation and Cultural Affairs Department administers the program for Alachua County. Tourist Product Development Fund-FY13 - to account for Tourist Product Development tax dollars passed through from the County and awarded as grants to artistic, eco-tourism and new program projects that will promote tourism in the area during fiscal year 2013. The City’s Parks, Recreation and Cultural Affairs Department administers the program for Alachua County. Tourist Product Development Fund-FY14 - to account for Tourist Product Development tax dollars passed through from the County and awarded as grants to artistic, eco-tourism and new program projects that will promote tourism in the area during fiscal year 2014. The City’s Parks, Recreation and Cultural Affairs Department administers the program for Alachua County. Evergreen Cemetery Trust Fund - to account for revenues, which will be used to finance perpetual care expenses incurred by the General Fund for cemetery gravesites. Interest income and income from lot sales and perpetual care contracts provide the financing sources.
School Crossing Guard Trust Fund - to account for the surcharge imposed on parking fines to fund the School Crossing Guard Program. Art in Public Places Trust Fund - to account for the use of funds to purchase art for new or majorly- renovated City buildings, and to accumulate funds to provide art that is accessible to the public in accordance with City Ordinance #3509.
Downtown Redevelopment Tax Increment Fund - to account for certain property tax increments, and interest earned on such funds, which are to be used for specific projects involving downtown redevelopment.
Fifth Avenue Tax Increment Fund - to account for certain property tax increments, and interest earned on such funds, which are to be used for specific projects involving redevelopment of the Fifth Avenue and Pleasant Street neighborhoods. College Park Tax Increment Fund - to account for certain property tax increments and interest earned on such funds, which are to be used for specific projects involving redevelopment of the College Park and University Heights neighborhoods.
Eastside Tax Increment Fund - to account for certain property tax increments and interest earned on such funds, which are to be used for specific projects involving redevelopment of the Eastside Redevelopment District.
DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long- term debt principal and interest. The City maintains the following Debt Service Funds:
First Florida Governmental Financing Commission (FFGFC) Fund – Series 2005 – to account for funds to accumulate the debt service requirements of the 2005 borrowing from the First Florida Governmental Financing Commission. First Florida Governmental Financing Commission (FFGFC) Fund – Series 2007 – to account for funds to accumulate the debt service requirements of the 2007 borrowing from the First Florida Governmental Financing Commission. Guaranteed Entitlement Revenue and Refunding Bonds 2004 Fund – to receive and account for funds (Guaranteed Entitlement funds) to accumulate the debt service requirements of the Guaranteed Entitlement Refunding Bonds of 2004. Pension Obligation Bonds Series 2003 A – to account for funds to accumulate the debt service requirements of the pension obligation bonds for the General Employee’s Pension Plan. Pension Obligation Bonds Series 2003 B – to account for funds to accumulate the debt service requirements of the pension obligation bonds for the Consolidated Police Officers’ and Firefighters’ Pension Plan. Other Post-Employment Benefit (OPEB) Obligation Bonds Series 2005 – to account for funds to accumulate the debt service requirements of the other post-employment benefit obligation bonds. Capital Improvement Revenue Bond (CIRB) Series 2005 – to account for funds to accumulate the debt service requirements of the CIRB of 2005. GPD Energy Conservation Master Capital Lease – to account for funds to accumulate the capital lease required payments for the Siemens GPD Energy Conservation Capital Lease. Capital Improvement Revenue Note (CIRN) 2009 – to account for funds to accumulate the debt service requirements of the CIRN of 2009. Capital Improvement Revenue Bond (CIRB) Series 2010 – to account for funds to accumulate the debt service requirements of the CIRB of 2010. Revenue Refunding Note Series 2011 – to account for funds to accumulate the debt service requirements of the Revenue Refunding Note of 2011. Capital Improvement Revenue Note Series 2011A – to account for funds to accumulate the debt service requirements of the CIRN of 2011. Revenue Refunding Note Series 2014 – to account for funds to accumulate the debt service requirements of the Revenue Refunding Note of 2014.
CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). The City maintains the following Capital Projects Funds:
General Capital Projects Fund - to account for costs of various projects, which are of relatively small dollar value in nature. Financing is generally provided by operating transfers from other funds of the City and interest earnings. Public Improvement Construction Fund - to account for the costs of various capital projects funded by the nonrefunding portion of the 1994 Guaranteed Entitlement Revenue & Refunding Bonds & interest earnings. Greenspace Acquisition Fund - to account for the costs of acquiring undeveloped land. Financing is provided by operating transfers from other funds of the City and interest earnings. Roadway Construction Fund 96 - to account for the costs of roadway improvements financed through First Florida Governmental Financing Commission borrowings (1996) and interest earnings.
Capital Projects Fund 02 – to account for the costs of various capital projects financed by the First Florida Governmental Financing Commission 2002 and interest earnings. Fifth Avenue/Pleasant Street Rehabilitation Project Fund 02 – to account for the acquisition and rehabilitation of properties in the Fifth Avenue/Pleasant Street district financed through the First Florida Governmental Financing Commission 2002 and interest earnings. Downtown Parking Garage Sales Tax Fund – to account for construction costs of the Alachua County Criminal Courthouse parking facilities financed by the local option sales tax. FFGFC 05 Capital Projects Fund – to account for the costs of various capital projects financed by the First Florida Governmental Financing Commission 2005 and interest earnings. 39th Avenue Fleet Garage Expansion Fund – to account for the costs of the expansion of the 39th Avenue Fleet garage. Capital Improvement Revenue Bond (CIRB) 2005 CIP Fund – to account for the costs of various capital projects financed by the CIRB 2005 and interest earnings. Kennedy Homes Acquisition/Demolition Fund – to account for the costs of acquiring the Kennedy Homes property, and for associated demolition and remodeling costs associated with the property’s rehabilitation. Campus Development Agreement (CDA) Capital Projects Fund – to account for the costs of projects specified to be funded by the Campus Development Agreement, provided by the University of Florida. Energy Conservation Capital Projects Fund – to account for the costs of projects related to energy conservation funded by the CIRN 2009 debt issue. Additional 5 Cents Local Option Gas Tax (LOGT) Capital Projects Fund – to account for the receipt and expenditure of the additional five cent local option gas tax.
Additional 5 Cents Local Option Gas Tax (LOGT) CIRN 2009 Capital Projects Fund – to account for the expenditure of the CIRN 2009 proceeds to be repaid with additional five cent local option gas tax. Traffic Management System Building Capital Projects Fund – to account for the costs of the traffic management system building project. Capital Improvement Revenue Note (CIRN) 2009 Capital Projects Fund – to account for the costs of various capital projects financed by the CIRN 2009 and interest earnings. Wild Spaces Public Places ½ Cent Sales Tax Capital Projects Fund – to account for the receipt of a portion of the Wild Spaces Public Places two-year ½ cent sales tax and the related capital projects associated with public recreation funded by the tax and interest earnings. Wild Spaces Public Places Land Acquisition Capital Projects Fund – to account for the receipt of a portion of the Wild Spaces Public Places two-year ½ cent sales tax and the related capital projects associated with land acquisition funded by the tax and interest earnings. Senior Recreation Center Capital Projects Fund – to account for the costs of the construction of the Senior Recreation Center. Capital Improvement Revenue Bond (CIRB) 2010 CIP Fund – to account for the costs of various capital projects financed by the CIRB 2010 and interest earnings. Capital Improvement Revenue Note (CIRN) 2011 CIP Fund – to account for the costs of various capital projects financed by the CIRN 2011 and interest earnings.
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
COMMUNITY URBAN STATE LAW DEVELOP- DEVELOP- CULTURAL ENFORCE-
MENT MENT AND MENT
BLOCK ACTION HOME NATURE CONTRABAND
GRANT GRANT GRANT PROJECTS FORFEITURE FUND FUND FUND FUND FUND
ASSETS Equity in pooled cash and investments -$ 1,267,419$ -$ 116,628$ 86,970$ Investments - - - - - Receivables 368,471 - 638,316 649 - Due from other funds - - - - - Assets held for evidence - - - - 315,251
TOTAL ASSETS 368,471$ 1,267,419$ 638,316$ 117,277$ 402,221$
LIABILITIES Accounts payable and accrued liabilities 12,587$ -$ 56,337$ 23,162$ 323,915$ Due to other funds 150,257 - 456,711 - - Unearned revenues - - - - - Advances from other funds - - - - -
Total Liabilities 162,844 - 513,048 23,162 323,915
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable 33,165 - 26,673 - - Deferred revenue-assessments net yet available - - - - -
Total Deferred Inflows of Resources 33,165 - 26,673 - -
FUND BALANCES Restricted 172,462 1,267,419 98,595 94,115 78,306 Committed - - - - - Assigned - - - - - Unassigned - - - - -
Total Fund Balances 172,462 1,267,419 98,595 94,115 78,306
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 368,471$ 1,267,419$ 638,316$ 117,277$ 402,221$
(CONTINUED)
SPECIAL REVENUE FUNDS
91
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
FEDERAL AMERICAN LAW EN- COMMUNITY RECOVERY STREET,
FORCEMENT POLICE REDEVEL- & REINVEST- SIDEWALK
CONTRABAND BILLABLE OPMENT MENT ACT AND DITCH
FORFEITURE OVERTIME AGENCY GRANTS IMPROVE- FUND FUND FUND FUND MENT FUND
1,556,151$ -$ 465,891$ -$ 164,492$ - - - - - - 224,029 3,434 - 3,458 - - - - - - - - - -
1,556,151$ 224,029$ 469,325$ -$ 167,950$
48,153$ 6,977$ 11,741$ -$ -$ - 214,809 - - - - - - - - - - 2,577,274 - -
48,153 221,786 2,589,015 - -
- - - - - - - - - 3,458
- - - - 3,458
1,507,998 - - - 164,492 - 2,243 - - - - - - - - - - (2,119,690) - -
1,507,998 2,243 (2,119,690) - 164,492
1,556,151$ 224,029$ 469,325$ -$ 167,950$
(CONTINUED)
SPECIAL REVENUE FUNDS (continued)
92
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
TRANSPOR- WATER AND MISCEL- TATION WASTEWATER
ECONOMIC LANEOUS CONCURRENCY SURCHARGE
DEVELOP- GIFTS AND EXCEPTION INFRA-
MENT GRANTS AREA STRUCTURE SHIP FUND FUND FUND FUND FUND
248,115$ -$ 2,986,210$ 1,239,068$ 625,720$ - - - - -
40,300 4,521,091 - - - - - - - - - - - - -
288,415$ 4,521,091$ 2,986,210$ 1,239,068$ 625,720$
558$ 37,796$ 85,772$ 16,242$ 30,000$ - 4,313,584 - - - - 89,152 - - - - - - - -
558 4,440,532 85,772 16,242 30,000
- - - - - - - - - -
- - - - -
287,857 80,559 2,900,438 - 595,720 - - - 1,222,826 - - - - - - - - - - -
287,857 80,559 2,900,438 1,222,826 595,720
288,415$ 4,521,091$ 2,986,210$ 1,239,068$ 625,720$
(CONTINUED)
SPECIAL REVENUE FUNDS (continued)
93
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
MISC- TOURIST PROPOR- TOURIST SMALL ELLANEOUS DESTINATION TIONATE PRODUCT
BUSINESS SPECIAL ENHANCE- FAIR SHARE DEVELOP
LOAN REVENUE MENT PROGRAM FY12 FUND FUND FUND FUND FUND
71,201$ 1,678,267$ 32,245$ -$ -$ - - - - - - 191,619 - - 41,060 - - - - - - - - - -
71,201$ 1,869,886$ 32,245$ -$ 41,060$
-$ 23,705$ -$ -$ -$ - - - - 41,060 - - - - - - - - - -
- 23,705 - - 41,060
- - - - - - - - - -
- - - - -
- 1,846,181 32,245 - - 71,201 - - - -
- - - - - - - - - -
71,201 1,846,181 32,245 - -
71,201$ 1,869,886$ 32,245$ -$ 41,060$
(CONTINUED)
SPECIAL REVENUE FUNDS (continued)
94
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
TOURIST TOURIST SCHOOL ART IN DOWNTOWN PRODUCT PRODUCT EVERGREEN CROSSING PUBLIC REDEVELOP-
DEVELOP DEVELOP CEMETERY GUARD PLACES MENT TAX
FY13 FY14 TRUST TRUST TRUST INCREMENT FUND FUND FUND FUND FUND FUND
11,840$ 261,246$ 42,733$ 52,134$ 84,262$ 3,186,161$ - - 1,739,627 - - -
14,449 - - - - 10,949 - - - - - 11,267 - - - - - -
26,289$ 261,246$ 1,782,360$ 52,134$ 84,262$ 3,208,377$
-$ 74,539$ -$ -$ 19,200$ 3,468$ - - - - - - - - - - - - - - - - - -
- 74,539 - - 19,200 3,468
- - - - - - - - - - - -
- - - - - -
26,289 186,707 1,782,360 52,134 - 3,204,909 - - - - 65,062 - - - - - - - - - - - - -
26,289 186,707 1,782,360 52,134 65,062 3,204,909
26,289$ 261,246$ 1,782,360$ 52,134$ 84,262$ 3,208,377$
(CONTINUED)
SPECIAL REVENUE FUNDS (continued)
95
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
FIFTH AVENUE COLLEGE EASTSIDE
TAX PARK TAX TAX FFGFC FFGFC
INCREMENT INCREMENT INCREMENT SERIES SERIES FUND FUND FUND 2005 2007
827,413$ 6,955,593$ 1,920,228$ 19,665$ -$ - - - - -
2,788 - 1,575 - - - - - - - - - - - -
830,201$ 6,955,593$ 1,921,803$ 19,665$ -$
13,085$ 27,247$ 1,085$ -$ -$ - - - - 1,746 - - - - - - - - - -
13,085 27,247 1,085 - 1,746
- - - - - 1,390 - - - -
1,390 - - - -
815,726 6,928,346 1,920,718 - - - - - - - - - - 19,665 - - - - - (1,746)
815,726 6,928,346 1,920,718 19,665 (1,746)
830,201$ 6,955,593$ 1,921,803$ 19,665$ -$
(CONTINUED)
DEBT SERVICE FUNDSSPECIAL REVENUE FUNDS (concluded)
96
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
PENSION PENSION OTHER CAPITAL GUARANTEED OBLIGATION OBLIGATION POST- IMPROVEMENT
ENTITLEMENT BOND BOND EMPLOYMENT REVENUE BOND
REFUNDING SERIES SERIES (OPEB) (CIRB) BONDS 2004 2003A 2003B BONDS 2005 SERIES 2005
115,546$ 102,740$ 116,035$ 120,968$ 5,547$ - - - - - - - - - - - - - - - - - - - -
115,546$ 102,740$ 116,035$ 120,968$ 5,547$
-$ -$ -$ 120,968$ -$ - - - - - - - - - - - - - - -
- - - 120,968 -
- - - - - - - - - -
- - - - -
- - - - - - - - - -
115,546 102,740 116,035 - 5,547 - - - - -
115,546 102,740 116,035 - 5,547
115,546$ 102,740$ 116,035$ 120,968$ 5,547$
(CONTINUED)
DEBT SERVICE FUNDS (continued)
97
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
GPD ENERGY CAPITAL CAPITAL CONSERV. IMPROVEMENT IMPROVEMENT REVENUE
MASTER REVENUE REVENUE BOND REFUNDING
CAPITAL NOTE (CIRB) NOTE LEASE (CIRN) 2009 SERIES 2010 SERIES 2011
71,010$ 82,687$ 54,559$ 9,028$ - - - - - - - - - - - - - - - -
71,010$ 82,687$ 54,559$ 9,028$
8,449$ -$ -$ -$ - - - - - - - - - - - -
8,449 - - -
- - - - - - - -
- - - -
- - - - - - - -
62,561 82,687 54,559 9,028 - - - -
62,561 82,687 54,559 9,028
71,010$ 82,687$ 54,559$ 9,028$
(CONTINUED)
DEBT SERVICE FUNDS (continued)
98
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
CAPITAL IMPROVEMENT REVENUE GENERAL PUBLIC
REVENUE REFUNDING CAPITAL IMPROVEMENT GREENSPACE
NOTE NOTE PROJECTS CONSTRUCTION ACQUISITION SERIES 2011A SERIES 2014 FUND FUND FUND
28,041$ 12,513$ 5,574,412$ 11,876$ 1,474,483$ - - - - - - - 19,500 - - - - - - - - - - - -
28,041$ 12,513$ 5,593,912$ 11,876$ 1,474,483$
-$ -$ 186,247$ -$ -$ - - 117,330 - - - - - - - - - - - -
- - 303,577 - -
- - - - - - - - - -
- - - - -
- - - - - - - - - -
28,041 12,513 5,290,335 11,876 1,474,483 - - - - -
28,041 12,513 5,290,335 11,876 1,474,483
28,041$ 12,513$ 5,593,912$ 11,876$ 1,474,483$
(CONTINUED)
DEBT SERVICE FUNDS (concl) CAPITAL PROJECTS FUNDS
99
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
FIFTH DOWNTOWN AVENUE/ PARKING FFGFC 05
ROADWAY CAPITAL PLEASANT ST GARAGE CAPITAL
CONSTRUCTION PROJECTS REHAB PROJ SALES PROJECTS FUND 96 FUND 02 FUND 02 TAX FUND FUND
61,261$ 1,116,846$ 73,526$ 18,189$ 248,407$ - - - - - - - - - - - - - - - - - - - -
61,261$ 1,116,846$ 73,526$ 18,189$ 248,407$
-$ 44,773$ -$ -$ 13,554$ - - - - - - - - - - - - - - -
- 44,773 - - 13,554
- - - - - - - - - -
- - - - -
- - - 18,189 - - - - - -
61,261 1,072,073 73,526 - 234,853 - - - - -
61,261 1,072,073 73,526 18,189 234,853
61,261$ 1,116,846$ 73,526$ 18,189$ 248,407$
(CONTINUED)
CAPITAL PROJECTS FUNDS (continued)
100
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
CAMPUS CAPITAL KENNEDY DEVELOPMENT
39TH AVENUE IMPROVEMENT HOMES AGREEMENT
FLEET GARAGE REVENUE BOND ACQUISITION/ CAPITAL
EXPANSION (CIRB) 2005 DEMOLITION PROJECTS FUND CIP FUND FUND FUND
-$ 4,128,491$ 699,708$ 8,898,061$ - - - - - - - - - - - - - - - -
-$ 4,128,491$ 699,708$ 8,898,061$
-$ 316,398$ -$ 174,981$ - - - - - - - - - - - -
- 316,398 - 174,981
- - - - - - - -
- - - -
- 3,812,093 - 8,723,080 - - - - - - 699,708 - - - - -
- 3,812,093 699,708 8,723,080
-$ 4,128,491$ 699,708$ 8,898,061$
(CONTINUED)
CAPITAL PROJECTS FUNDS (continued)
101
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
ADD'L 5 CENTS ADD'L 5 CENTS TRAFFIC ENERGY LOCAL OPTION GAS TAX (LOGT) MANAGEMENT
CONSERVATION GAS TAX (LOGT) CIRN 2009 SYSTEM BLDG
CAPITAL CAPITAL CAPITAL CAPITAL
PROJECTS PROJECTS PROJECTS PROJECTS FUND FUND FUND FUND
64,243$ 4,187,855$ 2,866,933$ 140,502$ - - - - - - - - - - - - - - - -
64,243$ 4,187,855$ 2,866,933$ 140,502$
-$ 50,496$ 183,262$ 99,761$ - - - - - - - - - - - -
- 50,496 183,262 99,761
- - - - - - - -
- - - -
- 4,137,359 2,683,671 - - - - -
64,243 - - 40,741 - - - -
64,243 4,137,359 2,683,671 40,741
64,243$ 4,187,855$ 2,866,933$ 140,502$
(CONTINUED)
CAPITAL PROJECTS FUNDS (continued)
102
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
CAPITAL IMP WILD SPACES WILD SPACES SENIOR REVENUE NOTE PUBLIC PLACES PUBLIC PLACES RECREATION
(CIRN) 2009 1/2 CENT SALES LAND ACQ. CENTER
CAPITAL TAX CAPITAL CAPITAL CAPITAL
PROJECTS PROJECTS PROJECTS PROJECTS FUND FUND FUND FUND
130,207$ 664,174$ 251,348$ 134,496$ - - - - - - - - - - - - - - - -
130,207$ 664,174$ 251,348$ 134,496$
-$ 36$ -$ -$ - - - - - - - - - - - -
- 36 - -
- - - - - - - -
- - - -
130,207 664,138 251,348 134,496 - - - - - - - - - - - -
130,207 664,138 251,348 134,496
130,207$ 664,174$ 251,348$ 134,496$
(CONTINUED)
CAPITAL PROJECTS FUNDS (concluded)
103
CITY OF GAINESVILLE, FLORIDA COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014
ASSETS Equity in pooled cash and investments Investments Receivables Due from other funds Assets held for evidence
TOTAL ASSETS
LIABILITIES Accounts payable and accrued liabilities Due to other funds Unearned revenues Advances from other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Deferred revenue-notes receivable Deferred revenue-assessments net yet available
Total Deferred Inflows of Resources
FUND BALANCES Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
CAPITAL IMP CAPITAL IMP REVENUE BOND REVENUE NOTE
(CIRB) 2010 (CIRN) 2011 TOTAL
CAPITAL CAPITAL NONMAJOR
PROJECTS PROJECTS GOVERNMENTAL FUND FUND FUNDS
1,293,282$ 104,634$ 56,761,260$ - - 1,739,627 - - 6,081,688 - - 11,267 - - 315,251
1,293,282$ 104,634$ 64,909,093$
-$ 14,131$ 2,028,625$ - - 5,295,497 - - 89,152 - - 2,577,274
- 14,131 9,990,548
- - 59,838 - - 4,848
- - 64,686
1,293,282 90,503 45,981,942 - - 1,361,332 - - 9,632,021 - - (2,121,436)
1,293,282 90,503 54,853,859
1,293,282$ 104,634$ 64,909,093$
(CONCLUDED)
CAPITAL PROJECTS FUNDS (concl)
104
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
COMMUNITY URBAN STATE LAW FEDERAL LAW DEVELOP- DEVELOP- CULTURAL ENFORCE- ENFORCE-
MENT MENT AND MENT MENT
BLOCK ACTION HOME NATURE CONTRABAND CONTRABAND GRANT GRANT GRANT PROJECTS FORFEITURE FORFEITURE FUND FUND FUND FUND FUND FUND
REVENUES Taxes -$ -$ -$ -$ -$ -$ Intergovernmental 1,189,045 - 475,722 - - - Charges for services 4,060 - - 404,659 - - Fines and forfeitures - - - - 57,916 317,646 Miscellaneous 2,045 - 177,985 60,630 15,514 -
TOTAL REVENUES 1,195,150 - 653,707 465,289 73,430 317,646
EXPENDITURES Current: General government - - - - - - Public safety 178,748 - - - 75,308 1,821,788 Physical environment - - - - - - Transportation - - - - - - Economic environment 801,415 - 649,537 - - - Human services 164,111 - - - - - Culture and recreation - - - 504,807 - - Debt service: Principal - - - - - - Interest and fiscal charges - - - - - - Bond issuance costs - - - - - - Capital outlay - - - - - -
TOTAL EXPENDITURES 1,144,274 - 649,537 504,807 75,308 1,821,788
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 50,876 - 4,170 (39,518) (1,878) (1,504,142)
OTHER FINANCING SOURCES (USES) Debt issuance - - - - - - Transfers in - - - - - 88,305 Transfers out (50,876) - (4,170) (15,890) - (1,204,755) Payment to refunded bond escrow agent - - - - - -
TOTAL OTHER FINANCING SOURCES (USES) (50,876) - (4,170) (15,890) - (1,116,450)
NET CHANGE IN FUND BALANCES - - - (55,408) (1,878) (2,620,592)
FUND BALANCES, October 1 172,462 1,267,419 98,595 149,523 80,184 4,128,590
FUND BALANCES, September 30 172,462$ 1,267,419$ 98,595$ 94,115$ 78,306$ 1,507,998$
(CONTINUED)
SPECIAL REVENUE FUNDS
105
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
AMERICAN RECOVERY STREET, MISCEL-
POLICE COMMUNITY & REINVEST- SIDEWALK ECONOMIC LANEOUS
BILLABLE REDEVELOPMENT MENT ACT AND DITCH DEVELOP- GIFTS AND OVERTIME AGENCY GRANTS IMPROVEMENT MENT GRANTS
FUND FUND FUND FUND FUND FUND
-$ -$ -$ -$ -$ -$ - - 7,345 - - 5,441,567
645,844 - - - - - - - - - - - - 5,830 - 7,823 72,902 -
645,844 5,830 7,345 7,823 72,902 5,441,567
- 62,417 - - - 5,880 646,837 - 7,345 - - 2,164,090
- - - - - 2,118,552 - - - - - 1,701,945 - 1,208,040 - - 76,674 176,477 - - - - - - - - - - - 65,180
- 5,261 - - - - - 20,753 - - - - - - - - - - - - - - - -
646,837 1,296,471 7,345 - 76,674 6,232,124
(993) (1,290,641) - 7,823 (3,772) (790,557)
- - - - - - 1,648 1,730,911 - - 50,000 766,583
- (60,854) - - - (12,611) - - - - - -
1,648 1,670,057 - - 50,000 753,972
655 379,416 - 7,823 46,228 (36,585)
1,588 (2,499,106) - 156,669 241,629 117,144
2,243$ (2,119,690)$ -$ 164,492$ 287,857$ 80,559$
(CONTINUED)
SPECIAL REVENUE FUNDS (continued)
106
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
TRANSPORTATION WATER AND MISC- TOURIST CONCURRENCY WASTEWATER SMALL ELLANEOUS DESTINATION
EXCEPTION SURCHARGE BUSINESS SPECIAL ENHANCE- AREA INFRASTRUCTURE SHIP LOAN REVENUE MENT FUND FUND FUND FUND FUND FUND
-$ -$ -$ -$ -$ -$ - - 248,801 - 210,516 (14,343)
648,863 - - - 127,735 - - - - - 52,430 -
41,592 58,317 24,400 - 792,532 -
690,455 58,317 273,201 - 1,183,213 (14,343)
- - - - 256,522 - - - - - 146,420 - - 45,262 - - - -
476,192 - - - 97,328 - - - 246,271 - 1,744 - - 52,148 - - 490,759 - - - - - 89,483 3,675
- - - - - - - - - - - - - - - - - - - - - - - -
476,192 97,410 246,271 - 1,082,256 3,675
214,263 (39,093) 26,930 - 100,957 (18,018)
- - - - - - - 115,266 - - 293,067 - - - - - (15,000) - - - - - - -
- 115,266 - - 278,067 -
214,263 76,173 26,930 - 379,024 (18,018)
2,686,175 1,146,653 568,790 71,201 1,467,157 50,263
2,900,438$ 1,222,826$ 595,720$ 71,201$ 1,846,181$ 32,245$
(CONTINUED)
SPECIAL REVENUE FUNDS (continued)
107
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
PROPOR- TOURIST TOURIST TOURIST SCHOOL ART IN TIONATE PRODUCT PRODUCT PRODUCT EVERGREEN CROSSING PUBLIC
FAIR SHARE DEVELOP DEVELOP DEVELOP CEMETERY GUARD PLACES PROGRAM FY12 FY13 FY14 TRUST TRUST TRUST
FUND FUND FUND FUND FUND FUND FUND
-$ -$ -$ -$ -$ -$ -$ - - - 675,368 - - - - - - - 4,706 - - - - - - - 35,275 - - - - - 233,800 3,324 2,189
- - - 675,368 238,506 38,599 2,189
- - - - - - - - - - - - - - - - - - - - -
58,293 - - - - - - - - - - - - - - - - - - - - - 66,885 24,485 488,661 - - 118,838
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
58,293 66,885 24,485 488,661 - - 118,838
(58,293) (66,885) (24,485) 186,707 238,506 38,599 (116,649)
- - - - - - - - - 1,289 - - - 62,500 - - - - (131,105) (43,472) - - - - - - - -
- - 1,289 - (131,105) (43,472) 62,500
(58,293) (66,885) (23,196) 186,707 107,401 (4,873) (54,149)
58,293 66,885 49,485 - 1,674,959 57,007 119,211
-$ -$ 26,289$ 186,707$ 1,782,360$ 52,134$ 65,062$
(CONTINUED)
SPECIAL REVENUE FUNDS (continued)
108
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
DOWNTOWN REDEVELOP- FIFTH COLLEGE EASTSIDE
MENT TAX AVENUE TAX PARK TAX TAX FFGFC FFGFC INCREMENT INCREMENT INCREMENT INCREMENT SERIES SERIES
FUND FUND FUND FUND 2005 2007
1,227,112$ 335,504$ 1,985,275$ 357,179$ -$ -$ - - - - - - - - - - - - - - - - - -
127,761 50,637 866,072 87,886 1,622 311
1,354,873 386,141 2,851,347 445,065 1,622 311
- - - - - - - - - - - - - - - - - - - - - - - -
504,056 209,438 3,921,641 129,095 - - - - - - - - - - - - - -
- - - - 260,000 65,000 - - - - 158,837 51,062 - - - - - - - - - - - -
504,056 209,438 3,921,641 129,095 418,837 116,062
850,817 176,703 (1,070,294) 315,970 (417,215) (115,751)
- - - - - - 638,449 174,558 1,032,912 185,835 426,934 114,005
(661,876) (246,487) (613,775) (208,773) - - - - - - - -
(23,427) (71,929) 419,137 (22,938) 426,934 114,005
827,390 104,774 (651,157) 293,032 9,719 (1,746)
2,377,519 710,952 7,579,503 1,627,686 9,946 -
3,204,909$ 815,726$ 6,928,346$ 1,920,718$ 19,665$ (1,746)$
(CONTINUED)
DEBT SERVICE FUNDSSPECIAL REVENUE FUNDS (concluded)
109
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
PENSION PENSION OTHER CAPITAL GPD GUARANTEED OBLIGATION OBLIGATION POST- IMPROV. ENERGY ENTITLEMENT BOND BOND EMPLOYMENT REVENUE CONSERV. REFUNDING SERIES SERIES (OPEB) BOND (CIRB) CAPITAL BONDS 2004 2003A 2003B BONDS 2005 SERIES 2005 LEASE
-$ -$ -$ -$ -$ -$ 1,040,563 1,567,824 - 3,486,572 - -
- - - - - - - - - - - -
12,442 22,703 21,688 59,597 5,547 1,606
1,053,005 1,590,527 21,688 3,546,169 5,547 1,606
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
850,000 755,144 804,214 7,430,000 1,035,000 84,176 193,657 1,720,631 3,004,706 349,953 89,200 17,216
- - - - - - - - - - - -
1,043,657 2,475,775 3,808,920 7,779,953 1,124,200 101,392
9,348 (885,248) (3,787,232) (4,233,784) (1,118,653) (99,786)
- - - - - - - 907,951 3,808,921 4,024,025 1,124,200 115,393 - - - - (73,363) - - - - - - -
- 907,951 3,808,921 4,024,025 1,050,837 115,393
9,348 22,703 21,689 (209,759) (67,816) 15,607
106,198 80,037 94,346 209,759 73,363 46,954
115,546$ 102,740$ 116,035$ -$ 5,547$ 62,561$
(CONTINUED)
DEBT SERVICE FUNDS (continued)
110
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
CAPITAL CAPITAL REVENUE CAPITAL IMPROV. IMPROV. REFUNDING IMPROV. REVENUE
REVENUE REV BOND NOTE REVENUE REFUNDING NOTE (CIRB) SERIES NOTE NOTE
(CIRN) 2009 SERIES 2010 2011 2011A SERIES 2014
-$ -$ -$ -$ -$ - - - - - - - - - - - - - - -
3,778 2,029 1,705 3,697 6,287
3,778 2,029 1,705 3,697 6,287
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
433,454 122,174 560,000 355,000 125,000 520,715 99,058 130,744 71,219 375,680
- - - - 41,837 - - - - -
954,169 221,232 690,744 426,219 542,517
(950,391) (219,203) (689,039) (422,522) (536,230)
- - - - 14,715,000 957,792 240,946 690,744 426,218 548,743
- - - - - - - - - (14,715,000)
957,792 240,946 690,744 426,218 548,743
7,401 21,743 1,705 3,696 12,513
75,286 32,816 7,323 24,345 -
82,687$ 54,559$ 9,028$ 28,041$ 12,513$
(CONTINUED)
DEBT SERVICE FUNDS (concluded)
111
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
GENERAL PUBLIC
CAPITAL IMPROVEMENT GREENSPACE ROADWAY CAPITAL PROJECTS CONSTRUCTION ACQUISITION CONSTRUCTION PROJECTS
FUND FUND FUND FUND 96 FUND 02
-$ -$ -$ -$ -$ 60,000 - - - -
- - - - - - - - - -
485,031 674 86,882 3,020 80,543
545,031 674 86,882 3,020 80,543
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - -
6,461,135 - 269,770 4,808 327,117
6,461,135 - 269,770 4,808 327,117
(5,916,104) 674 (182,888) (1,788) (246,574)
- - - - - 2,699,136 - - - -
(62,500) - - - - - - - - -
2,636,636 - - - -
(3,279,468) 674 (182,888) (1,788) (246,574)
8,569,803 11,202 1,657,371 63,049 1,318,647
5,290,335$ 11,876$ 1,474,483$ 61,261$ 1,072,073$
(CONTINUED)
CAPITAL PROJECTS FUNDS
112
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
DOWNTOWN 39TH AVE CAPITAL KENNEDY FIFTH AVENUE/ PARKING FFGFC 05 FLEET IMPROVEMENT HOMES
PLEASANT ST. GARAGE CAPITAL GARAGE REVENUE BOND ACQUISITION/ REHAB. PROJ. SALES PROJECTS EXPANSION (CIRB) 2005 DEMOLITION
FUND 02 TAX FUND FUND FUND CIP FUND FUND
-$ -$ -$ -$ -$ -$ - - - 1,265,760 - - - - - - - - - - - - - -
3,655 2,201 37,717 (2,361) 226,621 -
3,655 2,201 37,717 1,263,399 226,621 -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - 21,055 885,441 2,019,081 779,614 11,328
- 21,055 885,441 2,019,081 779,614 11,328
3,655 (18,854) (847,724) (755,682) (552,993) (11,328)
- - - - - - - - 500,144 - - - - - - (606,404) - - - - - - - -
- - 500,144 (606,404) - -
3,655 (18,854) (347,580) (1,362,086) (552,993) (11,328)
69,871 37,043 582,433 1,362,086 4,365,086 711,036
73,526$ 18,189$ 234,853$ -$ 3,812,093$ 699,708$
(CONTINUED)
CAPITAL PROJECTS FUNDS (continued)
113
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
CAMPUS ENERGY ADD'L 5 CENT ADD'L 5 CENT TRAFFIC CAPITAL IMP DEVELOP CONSER- LOCAL OPT GAS TAX MGMT REV NOTE
AGREEMENT VATION GAS TAX CIRN 2009 BLDG (CIRN) 2009
CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL PROJECTS PROJECTS PROJECTS PROJECTS PROJECTS PROJECTS
FUND FUND FUND FUND FUND FUND
-$ -$ 1,902,355$ -$ -$ -$ - - - - - - - - - - - - - - - - - -
520,027 2,558 187,172 287,089 7,321 2,672
520,027 2,558 2,089,527 287,089 7,321 2,672
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - -
1,548,930 - 722,329 2,101,042 111,083 117,477
1,548,930 - 722,329 2,101,042 111,083 117,477
(1,028,903) 2,558 1,367,198 (1,813,953) (103,762) (114,805)
- - - - - - - - - - - 220,697 - - (1,004,023) - - - - - - - - -
- - (1,004,023) - - 220,697
(1,028,903) 2,558 363,175 (1,813,953) (103,762) 105,892
9,751,983 61,685 3,774,184 4,497,624 144,503 24,315
8,723,080$ 64,243$ 4,137,359$ 2,683,671$ 40,741$ 130,207$
(CONTINUED)
CAPITAL PROJECTS FUNDS (continued)
114
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Miscellaneous
TOTAL REVENUES
EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Debt issuance Transfers in Transfers out Payment to refunded bond escrow agent
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, October 1
FUND BALANCES, September 30
WILD SPACES WILD SPACES SENIOR CAPITAL IMP CAPITAL IMP PUBLIC PLACES PUBLIC PLACES RECREATION REVENUE BOND REVENUE NOTE 1/2 CENT SALES LAND ACQ. CENTER (CIRB) 2010 (CIRN) 2011 TOTAL
TAX CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL NONMAJOR PROJECTS PROJECTS PROJECTS PROJECTS PROJECTS GOVERNMENTAL
FUND FUND FUND FUND FUND FUNDS
-$ -$ -$ -$ -$ 5,807,425$ - - - - - 15,654,740 - - - - - 1,835,867 - - - - - 463,267
79,412 13,282 6,198 169,310 135,323 5,108,598
79,412 13,282 6,198 169,310 135,323 28,869,897
- - - - - 324,819 - - - - - 5,040,536 - - - - - 2,163,814 - - - - - 2,333,758 - - - - - 7,924,388 - - - - - 707,018 - - - - - 1,362,014
- - - - - 12,884,423 - - - - - 6,803,431 - - - - - 41,837
501,294 - 6,591 1,474,374 1,319,676 18,682,145
501,294 - 6,591 1,474,374 1,319,676 58,268,183
(421,882) 13,282 (393) (1,305,064) (1,184,353) (29,398,286)
- - - - - 14,715,000 - - - - - 21,947,172 - - - - - (5,015,934) - - - - - (14,715,000)
- - - - - 16,931,238
(421,882) 13,282 (393) (1,305,064) (1,184,353) (12,467,048)
1,086,020 238,066 134,889 2,598,346 1,274,856 67,320,907
664,138$ 251,348$ 134,496$ 1,293,282$ 90,503$ 54,853,859$
(CONCLUDED)
CAPITAL PROJECTS FUNDS (concluded)
115
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Intergovernmental 1,189,045$ -$ 1,189,045$ 1,353,663$ (164,618)$ Charges for services 4,060 - 4,060 4,060 - Miscellaneous 2,045 - 2,045 2,045 -
TOTAL REVENUES 1,195,150 - 1,195,150 1,359,768 (164,618)
EXPENDITURES Public safety 178,748 - 178,748 208,845 30,097 Transportation - 60,494 60,494 160,179 99,685 Economic environment 801,415 17,286 818,701 1,262,220 443,519 Human services 164,111 34,274 198,385 209,414 11,029
TOTAL EXPENDITURES 1,144,274 112,054 1,256,328 1,840,658 584,330
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 50,876 (112,054) (61,178) (480,890) 419,712
OTHER FINANCING USES
Transfers out (50,876) - (50,876) (52,223) 1,347
NET CHANGE IN FUND BALANCES -$ (112,054)$ (112,054)$ (533,113)$ 421,059$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
116
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES
TOTAL REVENUES -$ -$ -$ -$ -$
EXPENDITURES Culture and recreation - - - 1,167,866 1,167,866
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES -$ -$ -$ (1,167,866)$ 1,167,866$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL URBAN DEVELOPMENT ACTION GRANT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2014
117
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Intergovernmental 475,722$ -$ 475,722$ 541,229$ (65,507)$ Miscellaneous 177,985 - 177,985 177,985 -
TOTAL REVENUES 653,707 - 653,707 719,214 (65,507)
EXPENDITURES Economic environment 649,537 193,326 842,863 2,128,079 1,285,216
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 4,170 (193,326) (189,156) (1,408,865) 1,219,709
OTHER FINANCING USES
Transfers out (4,170) - (4,170) (4,304) 134
NET CHANGE IN FUND BALANCES -$ (193,326)$ (193,326)$ (1,413,169)$ 1,219,843$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL HOME GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
118
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Charges for services: Entry fees and ticket sales 404,659$ -$ 404,659$ 412,512$ (7,853)$
Miscellaneous: Donations 34,028 - 34,028 33,000 1,028 Other miscellaneous 26,602 - 26,602 59,644 (33,042)
Total miscellaneous 60,630 - 60,630 92,644 (32,014)
TOTAL REVENUES 465,289 - 465,289 505,156 (39,867)
EXPENDITURES Culture and recreation 504,807 - 504,807 502,967 (1,840)
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (39,518) - (39,518) 2,189 (41,707)
OTHER FINANCING USES Transfers out (15,890) - (15,890) (19,102) 3,212
NET CHANGE IN FUND BALANCES (55,408)$ -$ (55,408)$ (16,913)$ (38,495)$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL CULTURAL AND NATURE PROJECTS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
119
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Fines and forfeitures: Confiscated property 57,916$ -$ 57,916$ -$ 57,916$
Miscellaneous: Investment income 2,983 - 2,983 - 2,983 Other miscellaneous 12,531 - 12,531 - 12,531
Total miscellaneous 15,514 - 15,514 - 15,514
TOTAL REVENUES 73,430 - 73,430 - 73,430
EXPENDITURES Public safety 75,308 - 75,308 118,323 43,015
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,878)$ -$ (1,878)$ (118,323)$ 116,445$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL STATE LAW ENFORCEMENT CONTRABAND FORFEITURE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
120
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Fines and forfeitures: Confiscated property 317,646$ -$ 317,646$ -$ 317,646$
EXPENDITURES Public safety 1,821,788 5,697 1,827,485 2,062,325 234,840
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,504,142) (5,697) (1,509,839) (2,062,325) 552,486
OTHER FINANCING SOURCES (USES) Transfers in 88,305 - 88,305 88,305 - Transfers out (1,204,755) - (1,204,755) (1,267,045) 62,290
TOTAL OTHER FINANCING
SOURCES (USES) (1,116,450) - (1,116,450) (1,178,740) 62,290
NET CHANGE IN FUND BALANCES (2,620,592)$ (5,697)$ (2,626,289)$ (3,241,065)$ 614,776$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL FEDERAL LAW ENFORCEMENT CONTRABAND FORFEITURE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
121
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Charges for services: Billable overtime 645,844$ -$ 645,844$ 645,189$ 655$
EXPENDITURES Public safety 646,837 - 646,837 646,837 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (993) - (993) (1,648) 655
OTHER FINANCING SOURCES Transfers in 1,648 - 1,648 1,648 -
NET CHANGE IN FUND BALANCES 655$ -$ 655$ -$ 655$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL POLICE BILLABLE OVERTIME FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
122
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 5,830$ -$ 5,830$ -$ 5,830$
EXPENDITURES General government 62,417 - 62,417 62,059 (358) Economic environment 1,208,040 2,250 1,210,290 1,580,994 370,704 Debt service Principal 5,261 - 5,261 5,261 - Interest 20,753 - 20,753 20,753 -
TOTAL EXPENDITURES 1,296,471 2,250 1,298,721 1,669,067 370,346
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,290,641) (2,250) (1,292,891) (1,669,067) 376,176
OTHER FINANCING SOURCES (USES)
Transfers in 1,730,911 - 1,730,911 1,730,917 (6) Transfers out (60,854) - (60,854) (61,850) 996
TOTAL OTHER FINANCING
SOURCES (USES) 1,670,057 - 1,670,057 1,669,067 990
NET CHANGE IN FUND BALANCES 379,416$ (2,250)$ 377,166$ -$ 377,166$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL COMMUNITY REDEVELOPMENT AGENCY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
123
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Miscellaneous: Rental income 66,279$ -$ 66,279$ 220,000$ (153,721)$ Investment income 6,623 - 6,623 1,800 4,823
Total miscellaneous revenue 72,902 - 72,902 221,800 (148,898)
TOTAL REVENUES 72,902 - 72,902 221,800 (148,898)
EXPENDITURES Economic environment 76,674 - 76,674 329,500 252,826
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,772) - (3,772) (107,700) 103,928
OTHER FINANCING SOURCES
Transfers in 50,000 - 50,000 50,000 -
NET CHANGE IN FUND BALANCES 46,228$ -$ 46,228$ (57,700)$ 103,928$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL ECONOMIC DEVELOPMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
124
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Charges for services 4,706$ -$ 4,706$ 8,400$ (3,694)$
Miscellaneous: Investment income 233,800 - 233,800 26,775 207,025
TOTAL REVENUES 238,506 - 238,506 35,175 203,331
EXPENDITURES
Physical environment: - - - 36,981 36,981
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 238,506 - 238,506 (1,806) 240,312
OTHER FINANCING USES
Transfers out (131,105) - (131,105) (131,105) -
NET CHANGE IN FUND BALANCES 107,401$ -$ 107,401$ (132,911)$ 240,312$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL EVERGREEN CEMETERY TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
125
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Fines and forfeitures 35,275$ -$ 35,275$ 27,500$ 7,775$ Miscellaneous: Investment income 3,324 - 3,324 - 3,324
TOTAL REVENUES 38,599 - 38,599 27,500 11,099
EXPENDITURES - - - - -
EXCESS OF REVENUES OVER EXPENDITURES 38,599 - 38,599 27,500 11,099
OTHER FINANCING USES
Transfers out (43,472) - (43,472) (43,472) -
NET CHANGE IN FUND BALANCES (4,873)$ -$ (4,873)$ (15,972)$ 11,099$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL SCHOOL CROSSING GUARD TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
126
VARIANCE WITH FINAL BUDGET -
BUDGETARY POSITIVE ACTUAL ENCUMBRANCES BASIS BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 2,189$ -$ 2,189$ -$ 2,189$
EXPENDITURES
Culture and recreation 118,838 - 118,838 239,970 121,132
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (116,649) - (116,649) (239,970) 123,321
OTHER FINANCING SOURCES
Transfers in 62,500 - 62,500 62,500 -
NET CHANGE IN FUND BALANCES (54,149)$ -$ (54,149)$ (177,470)$ 123,321$
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL ART IN PUBLIC PLACES TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
127
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL FFGFC FUND - SERIES 2005
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 1,622$ 121$ 1,501$
EXPENDITURES Debt service: Principal 260,000 260,000 - Interest and fiscal charges 158,837 159,934 1,097
TOTAL EXPENDITURES 418,837 419,934 1,097
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (417,215) (419,813) 2,598
OTHER FINANCING SOURCES Transfers in 426,934 426,934 -
NET CHANGE IN FUND BALANCES 9,719$ 7,121$ 2,598$
128
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL FFGFC FUND - SERIES 2007
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 311$ -$ 311$
EXPENDITURES Debt service: Principal 65,000 65,000 - Interest and fiscal charges 51,062 52,005 943
TOTAL EXPENDITURES 116,062 117,005 943
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (115,751) (117,005) 1,254
OTHER FINANCING SOURCES Transfers in 114,005 114,005 -
NET CHANGE IN FUND BALANCES (1,746)$ (3,000)$ 1,254$
129
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL GUARANTEED ENTITLEMENT REVENUE AND REFUNDING BONDS 2004
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Intergovernmental: State revenue sharing 1,040,563$ 1,040,563$ -$
Miscellaneous:
Investment income 12,442 3,461 8,981
TOTAL REVENUES 1,053,005 1,044,024 8,981
EXPENDITURES Debt service: Principal 850,000 850,000 - Interest and fiscal charges 193,657 194,313 656
TOTAL EXPENDITURES 1,043,657 1,044,313 656
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 9,348$ (289)$ 9,637$
130
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL PENSION OBLIGATION BOND SERIES 2003A FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Intergovernmental: Local cost sharing - GRU 1,559,187$ 1,559,187$ -$ Other local cost sharing 8,637 8,637 -
Total intergovernmental 1,567,824 1,567,824 - Miscellaneous: Investment income 22,703 1,393 21,310
TOTAL REVENUES 1,590,527 1,569,217 21,310
EXPENDITURES Debt service: Principal 755,144 755,144 - Interest & fiscal charges 1,720,631 1,720,631 -
TOTAL EXPENDITURES 2,475,775 2,475,775 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (885,248) (906,558) 21,310
OTHER FINANCING SOURCES Transfers in 907,951 907,951 -
NET CHANGE IN FUND BALANCES 22,703$ 1,393$ 21,310$
131
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL PENSION OBLIGATION BOND SERIES 2003B FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 21,688$ 2,047$ 19,641$
EXPENDITURES Debt service: Principal 804,214 804,214 - Interest & fiscal charges 3,004,706 3,004,706 -
TOTAL EXPENDITURES 3,808,920 3,808,920 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,787,232) (3,806,873) 19,641
OTHER FINANCING SOURCES Transfers in 3,808,921 3,808,921 -
NET CHANGE IN FUND BALANCES 21,689$ 2,048$ 19,641$
132
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL OTHER POST EMPLOYMENT (OPEB) BONDS 2005
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES
Intergovernmental: Local cost sharing - GRU 3,467,052$ 3,588,020$ (120,968)$ Other local cost sharing 19,520 19,871 (351)
Total intergovernmental 3,486,572 3,607,891 (121,319) Miscellaneous: Investment income 59,597 4,184 55,413
TOTAL REVENUES 3,546,169 3,612,075 (65,906)
EXPENDITURES Debt service: Principal 7,430,000 7,430,000 - Interest and fiscal charges 349,953 349,953 -
TOTAL EXPENDITURES 7,779,953 7,779,953 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (4,233,784) (4,167,878) (65,906)
OTHER FINANCING SOURCES Transfers in 4,024,025 4,172,063 (148,038)
NET CHANGE IN FUND BALANCES (209,759)$ 4,185$ (213,944)$
133
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL CAPITAL IMPROVEMENT REVENUE BOND (CIRB) - SERIES 2005
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 5,547$ -$ 5,547$
EXPENDITURES Debt service: Principal 1,035,000 1,035,000 - Interest and fiscal charges 89,200 89,200 -
TOTAL EXPENDITURES 1,124,200 1,124,200 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,118,653) (1,124,200) 5,547
OTHER FINANCING SOURCES (USES) Transfers in 1,124,200 1,124,200 - Transfers out (73,363) (73,363) -
TOTAL OTHER FINANCING SOURCES (USES) 1,050,837 1,050,837 -
NET CHANGE IN FUND BALANCES (67,816)$ (73,363)$ 5,547$
134
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL GPD ENERGY CONSERVATION MASTER CAPITAL LEASE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 1,606$ 1,749$ (143)$
EXPENDITURES Debt service: Principal 83,883 83,883 - Interest and fiscal charges 17,509 17,509 -
TOTAL EXPENDITURES 101,392 101,392 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (99,786) (99,643) (143)
OTHER FINANCING SOURCES Transfers in 115,393 115,393 -
NET CHANGE IN FUND BALANCES 15,607$ 15,750$ (143)$
135
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL CAPITAL IMPROVEMENT REVENUE NOTE (CIRN) - SERIES 2009
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 3,778$ -$ 3,778$
EXPENDITURES Debt service: Principal 433,454 490,000 56,546 Interest and fiscal charges 520,715 593,645 72,930
TOTAL EXPENDITURES 954,169 1,083,645 129,476
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (950,391) (1,083,645) 133,254
OTHER FINANCING SOURCES Transfers in 957,792 957,792 -
NET CHANGE IN FUND BALANCES 7,401$ (125,853)$ 133,254$
136
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL CAPITAL IMPROVEMENT REVENUE BOND (CIRB) - SERIES 2010
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 2,029$ 1,110$ 919$
EXPENDITURES Debt service: Principal 122,174 122,174 - Interest and fiscal charges 99,058 99,058 -
TOTAL EXPENDITURES 221,232 221,232 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (219,203) (220,122) 919
OTHER FINANCING SOURCES Transfers in 240,946 240,946 -
NET CHANGE IN FUND BALANCES 21,743$ 20,824$ 919$
137
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL REVENUE REFUNDING NOTE SERIES 2011
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 1,705$ -$ 1,705$
EXPENDITURES Debt service: Principal 560,000 560,000 - Interest and fiscal charges 130,744 130,744 -
TOTAL EXPENDITURES 690,744 690,744 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (689,039) (690,744) 1,705
OTHER FINANCING SOURCES Transfers in 690,744 690,744 -
NET CHANGE IN FUND BALANCES 1,705$ -$ 1,705$
138
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL CAPITAL IMPROVEMENT REVENUE NOTE SERIES 2011A
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 3,697$ -$ 3,697$
EXPENDITURES Debt service: Principal 355,000 355,000 - Interest and fiscal charges 71,219 71,219 -
TOTAL EXPENDITURES 426,219 426,219 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (422,522) (426,219) 3,697
OTHER FINANCING SOURCES Transfers in 426,218 426,219 (1)
NET CHANGE IN FUND BALANCES 3,696$ -$ 3,696$
139
CITY OF GAINESVILLE, FLORIDA SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL REVENUE REFUNDING NOTE SERIES 2014
FOR THE YEAR ENDED SEPTEMBER 30, 2014
VARIANCE WITH FINAL BUDGET -
POSITIVE ACTUAL BUDGET (NEGATIVE)
REVENUES Miscellaneous: Investment income 6,287$ -$ 6,287$
EXPENDITURES Debt service: Principal 125,000 125,000 - Interest and fiscal charges 375,680 375,680 - Bond issuance costs 41,837 48,063 6,226
TOTAL EXPENDITURES 542,517 548,743 6,226
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (536,230) (548,743) 12,513
OTHER FINANCING SOURCES (USES) Debt issuance 14,715,000 14,715,000 - Transfers in 548,743 548,743 - Payment to refunded bond escrow agent (14,715,000) (14,715,000) -
TOTAL OTHER FINANCING SOURCES (USES) 548,743 548,743 -
NET CHANGE IN FUND BALANCES 12,513$ -$ 12,513$
140
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations: (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City maintains the following non-major Enterprise Funds:
Regional Transit System Fund - to account for the operations of the City’s mass transit system, funded by user fees and state and federal grants. Stormwater Management Utility Fund - to account for the operations of a program designed to maintain, replace and expand the City’s stormwater-related infrastructure, funded by user fees. Ironwood Golf Course Fund - to account for the operations of the City owned golf course, funded by user fees. Florida Building Code Enforcement Fund – to account for the operations of the City’s code enforcement operations, funded by building permit revenues. Solid Waste Fund - to account for the City’s refuse and recycling collection program. The refuse and recycling collections are performed by private contractors and are funded through user fees.
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2014
REGIONAL STORMWATER IRONWOOD TRANSIT MANAGEMENT GOLF SYSTEM UTILITY COURSE
FUND FUND FUND ASSETS Current assets: Cash and cash equivalents 150$ -$ 3,400$ Equity in pooled cash and investments - 1,421,503 - Receivables 5,346,748 1,938,605 1,400 Due from other funds - 2,970,101 - Inventories 1,070,241 - 65,403
Total current assets 6,417,139 6,330,209 70,203
Noncurrent assets: Capital assets (net of accumulated depreciation): Buildings 3,407,850 1,674,123 374,549 Improvements other than buildings 867,217 - 1,134,420 Machinery and equipment 17,634,871 244,910 152,392 Infrastructure - 11,891,637 - Capital assets (not depreciated): Land 2,690,877 3,967,091 520,265 Construction in progress 33,677,511 14,501,752 -
Total noncurrent assets 58,278,326 32,279,513 2,181,626
TOTAL ASSETS 64,695,465 38,609,722 2,251,829
LIABILITIES Current liabilities: Accounts payable and accrued liabilities 5,345,653 445,154 81,388 Accounts payable - payroll 75,830 16,740 1,050 Due to other funds 1,750,349 1,905,724 1,219,918 Current portion of long-term debt 15,132 235,242 54,638
Total current liabilities 7,186,964 2,602,860 1,356,994 Noncurrent liabilities: Long-term debt 378,299 2,263,985 1,062,565
Total noncurrent liabilities 378,299 2,263,985 1,062,565
TOTAL LIABILITIES 7,565,263 4,866,845 2,419,559
NET POSITION Net investment in capital assets 58,278,326 29,853,062 1,072,289 Restricted for: Capital improvement surcharge - - 133,072 RTS grant 468,600 - - Unrestricted (1,616,724) 3,889,815 (1,373,091)
TOTAL NET POSITION 57,130,202$ 33,742,877$ (167,730)$
(CONTINUED)
141
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2014
ASSETS Current assets: Cash and cash equivalents Equity in pooled cash and investments Receivables Due from other funds Inventories
Total current assets
Noncurrent assets: Capital assets (net of accumulated depreciation): Buildings Improvements other than buildings Machinery and equipment Infrastructure Capital assets (not depreciated): Land Construction in progress
Total noncurrent assets
TOTAL ASSETS
LIABILITIES Current liabilities: Accounts payable and accrued liabilities Accounts payable - payroll Due to other funds Current portion of long-term debt
Total current liabilities Noncurrent liabilities: Long-term debt
Total noncurrent liabilities
TOTAL LIABILITIES
NET POSITION Net investment in capital assets Restricted for: Capital improvement surcharge RTS grant Unrestricted
TOTAL NET POSITION
FLORIDA TOTAL BUILDING CODE SOLID NONMAJOR ENFORCEMENT WASTE ENTERPRISE
FUND FUND FUNDS
-$ -$ 3,550$ 3,435,665 3,088,820 7,945,988
- 361,843 7,648,596 - 654,438 3,624,539
4,142 - 1,139,786
3,439,807 4,105,101 20,362,459
- 497,060 5,953,582 - - 2,001,637
2,934 55,222 18,090,329 - - 11,891,637
- 100,989 7,279,222 - - 48,179,263
2,934 653,271 93,395,670
3,442,741 4,758,372 113,758,129
283,566 458,778 6,614,539 8,540 4,558 106,718
- - 4,875,991 3,269 30,969 339,250
295,375 494,305 11,936,498
81,732 646,921 4,433,502
81,732 646,921 4,433,502
377,107 1,141,226 16,370,000
2,934 653,271 89,859,882
- - 133,072 - - 468,600
3,062,700 2,963,875 6,926,575
3,065,634$ 3,617,146$ 97,388,129$
(CONCLUDED)
142
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REGIONAL STORMWATER IRONWOOD TRANSIT MANAGEMENT GOLF SYSTEM UTILITY COURSE
FUND FUND FUND OPERATING REVENUES Sales and service charges 15,078,622$ 7,238,729$ 919,004$ Other operating revenues 315,868 135,390 -
TOTAL OPERATING REVENUES 15,394,490 7,374,119 919,004
OPERATING EXPENSES Operations and maintenance 19,391,383 4,780,249 793,526 Administrative and general 1,378,149 871,871 451,111 Depreciation and amortization 3,167,925 480,853 152,865
TOTAL OPERATING EXPENSES 23,937,457 6,132,973 1,397,502
OPERATING INCOME (LOSS) (8,542,967) 1,241,146 (478,498)
NON OPERATING REVENUES (EXPENSES) Investment income /(loss) (107,892) 477,362 (31,643) Interest expense - (41,244) (42,831) Local option gas tax 1,769,622 - - Operating grants 25,213,077 - -
TOTAL NON OPERATING REVENUE(EXPENSES) 26,874,807 436,118 (74,474)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 18,331,840 1,677,264 (552,972)
Capital contributions 1,043,947 3,083,698 6,572 Transfers in 1,027,639 - 864,540 Transfers out (841,631) (1,116,482) (19,415)
CHANGE IN NET POSITION 19,561,795 3,644,480 298,725
TOTAL NET POSITION October 1 37,568,407 30,098,397 (466,455)
TOTAL NET POSITION September 30 57,130,202$ 33,742,877$ (167,730)$
(CONTINUED)
143
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
OPERATING REVENUES Sales and service charges Other operating revenues
TOTAL OPERATING REVENUES
OPERATING EXPENSES Operations and maintenance Administrative and general Depreciation and amortization
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON OPERATING REVENUES (EXPENSES) Investment income /(loss) Interest expense Local option gas tax Operating grants
TOTAL NON OPERATING REVENUE(EXPENSES)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions Transfers in Transfers out
CHANGE IN NET POSITION
TOTAL NET POSITION October 1
TOTAL NET POSITION September 30
FLORIDA TOTAL BUILDING CODE SOLID NONMAJOR ENFORCEMENT WASTE ENTERPRISE
FUND FUND FUNDS
2,297,733$ 9,042,706$ 34,576,794$ - - 451,258
2,297,733 9,042,706 35,028,052
1,992,682 7,197,161 34,155,001 274,326 284,249 3,259,706
3,000 51,404 3,856,047
2,270,008 7,532,814 41,270,754
27,725 1,509,892 (6,242,702)
145,275 113,289 596,391 - (33,363) (117,438) - - 1,769,622 - - 25,213,077
145,275 79,926 27,461,652
173,000 1,589,818 21,218,950
- - 4,134,217 50,000 6,400 1,948,579
(116,092) (1,103,972) (3,197,592)
106,908 492,246 24,104,154
2,958,726 3,124,900 73,283,975
3,065,634$ 3,617,146$ 97,388,129$
(CONCLUDED)
144
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REGIONAL STORMWATER IRONWOOD TRANSIT MANAGEMENT GOLF SYSTEM UTILITY COURSE
FUND FUND FUND CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 20,334,074$ 5,795,671$ 919,004$ Cash paid to suppliers (8,951,674) (2,911,910) (987,100) Cash paid to employees (11,737,925) (2,970,205) (191,233)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (355,525) (86,444) (259,329)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Local option gas tax 1,769,622 - - Operating grants 24,169,130 (3,083,698) - Interest paid (107,892) - (31,643) Interfund borrowing (4,330,431) 4,817,607 (384,934) Transfers from other funds 1,027,639 - 864,540 Transfers to other funds (841,631) (1,116,482) (19,415)
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACITIVITES 21,686,437 617,427 428,548
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal repayments on long-term debt - 1,287,540 (52,826) Proceeds from sale of capital assets - - - Interest paid on long-term debt - (41,244) (42,831) Capital contributions 1,043,947 3,083,698 - Acquisition and construction of capital assets (22,378,559) (4,181,505) (70,287)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (21,334,612) 148,489 (165,944)
CASH FLOWS FROM INVESTING ACTIVITIES Interest received - 477,362 - Purchase of investments - (1,150,707) - Proceeds from investment maturities - 241,458 -
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES - (431,887) -
NET INCREASE (DECREASE) IN CASH (3,700) 247,585 3,275
CASH - OCTOBER 1 3,850 23,211 125
CASH - SEPTEMBER 30 150$ 270,796$ 3,400$
(continued) 145
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash paid to suppliers Cash paid to employees
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Local option gas tax Operating grants Interest paid Interfund borrowing Transfers from other funds Transfers to other funds
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACITIVITES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal repayments on long-term debt Proceeds from sale of capital assets Interest paid on long-term debt Capital contributions Acquisition and construction of capital assets
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES Interest received Purchase of investments Proceeds from investment maturities
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES
NET INCREASE (DECREASE) IN CASH
CASH - OCTOBER 1
CASH - SEPTEMBER 30
FLORIDA TOTAL BUILDING CODE SOLID NONMAJOR ENFORCEMENT WASTE ENTERPRISE
FUND FUND FUNDS
2,297,733$ 9,042,646$ 38,389,128$ (477,407) (6,760,559) (20,088,650)
(1,689,392) (786,042) (17,374,797)
130,934 1,496,045 925,681
- - 1,769,622 - - 21,085,432 - - (139,535)
13,397 (9,121) 106,518 50,000 6,400 1,948,579
(116,092) (1,103,972) (3,197,592)
(52,695) (1,106,693) 21,573,024
- (28,274) 1,206,440 - 4,274 4,274 - (33,363) (117,438) - - 4,127,645 - - (26,630,351)
- (57,363) (21,409,430)
145,275 113,289 735,926 (2,781,171) (2,500,400) (6,432,278) 2,930,445 2,411,703 5,583,606
294,549 24,592 (112,746)
372,788 356,581 976,529
281,706 231,839 540,731
654,494$ 588,420$ 1,517,260$
(continued) 146
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REGIONAL STORMWATER IRONWOOD TRANSIT MANAGEMENT GOLF SYSTEM UTILITY COURSE
FUND FUND FUND
OPERATING INCOME (LOSS) (8,542,967)$ 1,241,146$ (478,498)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Depreciation and amortization 3,167,925 480,853 152,865 (Increase)/decrease in receivables 4,939,584 (1,578,448) - (Increase)/decrease in inventories (114,364) - (5,766) Increase/(decrease) in accounts payable and accrued liabilities 194,297 (229,995) 72,070
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (355,525)$ (86,444)$ (259,329)$
RECONCILIATION OF CASH TO STATEMENT OF NET POSITION Cash 150$ 270,796$ 3,400$ Investments - 1,150,707 -
TOTAL CASH, EQUITY IN POOL AND INVESTMENTS 150$ 1,421,503$ 3,400$
PER STATEMENT OF NET POSITION
NONCASH CAPITAL, INVESTING AND FINANCING ACTIVITIES Change in fair value of investments -$ (657,941)$ -$
(continued) 147
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
OPERATING INCOME (LOSS)
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Depreciation and amortization (Increase)/decrease in receivables (Increase)/decrease in inventories Increase/(decrease) in accounts payable and accrued liabilities
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
RECONCILIATION OF CASH TO STATEMENT OF NET POSITION Cash Investments
TOTAL CASH, EQUITY IN POOL AND INVESTMENTS
PER STATEMENT OF NET POSITION
NONCASH CAPITAL, INVESTING AND FINANCING ACTIVITIES Change in fair value of investments
FLORIDA TOTAL BUILDING CODE SOLID NONMAJOR ENFORCEMENT WASTE ENTERPRISE
FUND FUND FUNDS
27,725$ 1,509,892$ (6,242,702)$
3,000 51,404 3,856,047 - (60) 3,361,076 - - (120,130)
100,209 (65,191) 71,390
130,934$ 1,496,045$ 925,681$
654,494$ 588,420$ 1,517,260$ 2,781,171 2,500,400 6,432,278
3,435,665$ 3,088,820$ 7,949,538$
(255,638)$ (209,995)$ (1,123,574)$
(concluded) 148
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost- reimbursement basis. The City maintains the following Internal Service Funds:
General Insurance Fund - to account for costs associated with administering a self-insurance plan for worker’s compensation, automobile, and general liability benefits. The plan is externally administered. Employees Health and Accident Benefits Fund - to account for costs associated with administering a self-insurance plan for employees’ and retirees’ health and accident claims. The plan is externally administered for an annually contracted amount, which is based upon volume of claims. Fleet Management Fund - to account for the costs of vehicle acquisition and replacements and operating a maintenance facility for vehicles used by various City departments.
EMPLOYEES HEALTH AND
GENERAL ACCIDENT FLEET INSURANCE BENEFITS MANAGEMENT
FUND FUND FUND TOTALS ASSETS Current assets: Cash and cash equivalents 400,000$ 88,000$ -$ 488,000$ Equity in pooled cash and investments 11,598,154 4,232,711 7,119,033 22,949,898 Receivables - 169 678 847 Due from other funds 425,178 - 225,756 650,934 Inventories - - 145,759 145,759 Prepaid expenses 23,204 - - 23,204
Total current assets 12,446,536 4,320,880 7,491,226 24,258,642
Noncurrent assets: Capital assets (net of accumulated depreciation): Buildings - - 3,434,627 3,434,627 Improvements other than buildings - - 1,291,876 1,291,876 Machinery and equipment 22,384 - 6,878,419 6,900,803 Infrastructure - - 258,194 258,194 Capital assets (non depreciable): Land - - 586,536 586,536 Construction in progress - - - -
Total noncurrent assets 22,384 - 12,449,652 12,472,036
TOTAL ASSETS 12,468,920 4,320,880 19,940,878 36,730,678
LIABILITIES Current liabilities: Accounts payable and accrued liabilities 7,000,596 1,316,400 630,941 8,947,937 Accounts payable - payroll 7,551 1,539 8,213 17,303 Current portion of long-term debt 1,863 - 2,810 4,673
Total current liabilities 7,010,010 1,317,939 641,964 8,969,913 Noncurrent liabilities:
Long-term debt 46,575 - 70,254 116,829
TOTAL LIABILITIES 7,056,585 1,317,939 712,218 9,086,742
NET POSITION Invested in capital assets 22,384 - 12,449,652 12,472,036 Unrestricted 5,389,951 3,002,941 6,779,008 15,171,900
TOTAL NET POSITION 5,412,335$ 3,002,941$ 19,228,660$ 27,643,936$
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS SEPTEMBER 30, 2014
149
EMPLOYEES HEALTH AND
GENERAL ACCIDENT FLEET INSURANCE BENEFITS MANAGEMENT
FUND FUND FUND TOTALS OPERATING REVENUES Sales and service charges 5,770,065$ 5,305,268$ 7,595,964$ 18,671,297$ Employer contributions - 11,116,592 - 11,116,592 Employee contributions - 5,781,480 - 5,781,480 Other operating revenues 186,583 1,565,316 8,462 1,760,361
TOTAL OPERATING REVENUES 5,956,648 23,768,656 7,604,426 37,329,730
OPERATING EXPENSES Operations and maintenance 5,640,635 - 6,437,913 12,078,548 Administrative and general 1,018,177 368,112 734,262 2,120,551 Depreciation and amortization 12,497 - 2,035,700 2,048,197 Benefits paid and other expenses - 24,912,373 - 24,912,373
TOTAL OPERATING EXPENSES 6,671,309 25,280,485 9,207,875 41,159,669
OPERATING INCOME (LOSS) (714,661) (1,511,829) (1,603,449) (3,829,939)
NON OPERATING REVENUES Investment income 613,527 362,007 422,813 1,398,347
TOTAL NON OPERATING REVENUES 613,527 362,007 422,813 1,398,347
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS (101,134) (1,149,822) (1,180,636) (2,431,592)
Capital contributions - - 117,000 117,000 Transfers in - - 606,404 606,404 Transfers out (81,648) (7,467) (105,264) (194,379)
CHANGE IN NET POSITION (182,782) (1,157,289) (562,496) (1,902,567)
NET POSITION, October 1 5,595,117 4,160,230 19,791,156 29,546,503
NET POSITION, September 30 5,412,335$ 3,002,941$ 19,228,660$ 27,643,936$
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
150
EMPLOYEES HEALTH AND
GENERAL ACCIDENT FLEET INSURANCE BENEFITS MANAGEMENT
FUND FUND FUND TOTALS
CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 5,770,065$ 23,768,656$ 7,595,286$ 37,134,007$ Cash paid to suppliers (5,189,993) (25,236,555) (5,058,402) (35,484,950) Cash paid to employees (1,340,589) (96,794) (1,621,006) (3,058,389) Other operating receipts 186,583 - 8,462 195,045
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (573,934) (1,564,693) 924,340 (1,214,287)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES Transfers from other funds - - 606,404 606,404 Transfers to other funds (81,648) (7,467) (105,264) (194,379)
NET CASH PROVIDED (USED) BY NONCAPITAL
FINANCING ACTIVITIES (81,648) (7,467) 501,140 412,025
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets - - (54,339) (54,339)
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES - - (54,339) (54,339)
CASH FLOWS FROM INVESTING ACTIVITIES Interest received 613,527 362,007 422,813 1,398,347 Purchase of investments (9,388,706) (3,426,380) (5,762,857) (18,577,943) Proceeds from investment maturities 10,984,283 4,965,525 4,858,070 20,807,878
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 2,209,104 1,901,152 (481,974) 3,628,282
NET INCREASE IN CASH 1,553,522 328,992 889,167 2,771,681
CASH - OCTOBER 1 1,055,926 565,339 467,009 2,088,274
CASH - SEPTEMBER 30 2,609,448$ 894,331$ 1,356,176$ 4,859,955$
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
(continued)
151
EMPLOYEES HEALTH AND
GENERAL ACCIDENT FLEET INSURANCE BENEFITS MANAGEMENT
FUND FUND FUND TOTALS
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS) (714,661)$ (1,511,829)$ (1,603,449)$ (3,829,939)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Depreciation and amortization 12,497 - 2,035,700 2,048,197 (Increase)/decrease in receivables - - (678) (678) (Increase)/decrease in due from other funds (243,094) - (2,336) (245,430) (Increase)/decrease in inventories - - (37,660) (37,660) Increase/(decrease) in accounts payable and accrued liabilities 371,324 (52,864) 532,763 851,223
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (573,934)$ (1,564,693)$ 924,340$ (1,214,287)$
RECONCILIATION OF CASH TO STATEMENT OF NET POSITION Cash 2,609,448$ 894,331$ 1,356,176$ 4,859,955$ Investments 9,388,706 3,426,380 5,762,857 18,577,943
TOTAL CASH AND EQUITY IN POOL 11,998,154$ 4,320,711$ 7,119,033$ 23,437,898$
PER STATEMENT OF NET POSITION
NONCASH CAPITAL, INVESTING AND
FINANCING ACTIVITIES
Contribution of capital assets -$ -$ 117,000$ 117,000$
Change in fair value of investments (959,757) (434,854) (642,100) (2,036,711)
NET NONCASH CAPITAL, INVESTING (959,757)$ (434,854)$ (525,100)$ (1,919,711)$
AND FINANCING ACTIVITIES
(concluded)
152
FIDUCIARY FUNDS
TRUST FUNDS Trust Funds are used to account for public employee retirement systems and the other post-employment benefit trust fund. The City maintains the following Trust Funds:
Employees’ Pension Fund - to account for the accumulation of resources to be used for pension payments to participants of the City’s Employees’ Pension Plan. Employees’ Disability Pension Fund - to account for the accumulation of resources to be used for pension payments to participants of the City’s Disability Pension Plan. Police Officers’ and Firefighters’ Consolidated Retirement Fund - to account for the accumulation of resources to be used for pension payments to participants of the City’s Consolidated Police Officers’ and Firefighters’ Retirement Plan. Other Post-Employment Benefits (OPEB) Fund - to account for the accumulation of resources to be used for the City’s portion of the premium cost for providing health insurance to the City’s retired employees participating in the OPEB plan.
POLICE OFFICERS' OTHER AND POST-
EMPLOYEES' FIREFIGHTERS' EMPLOYMENT EMPLOYEES' DISABILITY CONSOLIDATED BENEFITS
PENSION PENSION RETIREMENT (OPEB) FUND FUND FUND FUND TOTALS
ASSETS Cash and cash equivalents 4,342,464$ 345,609$ 2,051,252$ 1,876,800$ 8,616,125$ Equity in pooled cash and investments 4,941,603 58,097 2,875,690 843,551 8,718,941 Investments, at fair value: Equities 284,495,017 6,650,500 185,547,321 45,662,047 522,354,885 Real estate 47,675,575 - 13,228,783 - 60,904,358 Alternative investments 667,228 1,167,781 565,817 9,789,613 12,190,439 Fixed income: Government bonds 604,823 67,062 1,814,003 513,310 2,999,198 Corporate bonds 3,837,918 - 9,493,367 - 13,331,285 Mortgage & asset backed securities 450,000 153,593 1,255,052 1,182,053 3,040,698
Total investments, at fair value: 337,730,561 8,038,936 211,904,343 57,147,023 614,820,863
Investment adjustments: Dividends receivable 147,781 - 60,949 - 208,730 Interest receivable 57,397 - 133,219 - 190,616 Receivable for investments sold 553,857 - 276,119 - 829,976 Payable for investments purchased (235,035) - (247,265) - (482,300)
Total investment adjustments 524,000 - 223,022 - 747,022
TOTAL ASSETS 347,538,628 8,442,642 217,054,307 59,867,374 632,902,951
LIABILITIES Accounts payable and accrued liabilities 58,063 1,237 6,397 60 65,757
TOTAL LIABILITIES 58,063 1,237 6,397 60 65,757
NET POSITION RESTRICTED FOR PENSION AND OPEB BENEFITS 347,480,565$ 8,441,405$ 217,047,910$ 59,867,314$ 632,837,194$
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION AND OPEB TRUST FUNDS SEPTEMBER 30, 2014
153
POLICE OFFICERS' OTHER AND POST-
EMPLOYEES' FIREFIGHTERS' EMPLOYMENT EMPLOYEES' DISABILITY CONSOLIDATED BENEFITS
PENSION PENSION RETIREMENT (OPEB) FUND FUND FUND FUND TOTALS
ADDITIONS:
Contributions: Employer contributions: Required 11,519,431$ 269,682$ 3,855,020$ 2,746,676$ 18,390,809$ State on behalf payments, through general fund - - 1,259,995 - 1,259,995
Total employer contributions 11,519,431 269,682 5,115,015 2,746,676 19,650,804
Employee contributions 4,260,476 - 2,067,685 2,788,980 9,117,141
Total contributions 15,779,907 269,682 7,182,700 5,535,656 28,767,945
Investment income: Net appreciation in fair value of investments 32,367,007 591,251 20,632,438 4,066,220 57,656,916 Dividends & interest 3,506,593 130,119 2,465,205 917,264 7,019,181
Total investment income 35,873,600 721,370 23,097,643 4,983,484 64,676,097
Less investment expense 1,696,708 61,718 1,186,108 446,513 3,391,047
Net investment income 34,176,892 659,652 21,911,535 4,536,971 61,285,050
TOTAL ADDITIONS 49,956,799 929,334 29,094,235 10,072,627 90,052,995
DEDUCTIONS: Benefit payments 25,872,678 209,268 12,665,810 7,568,607 46,316,363 Refunds of contributions 289,246 - 232,972 - 522,218 Administrative expenses 613,886 68,508 609,264 11,493 1,303,151
TOTAL DEDUCTIONS 26,775,810 277,776 13,508,046 7,580,100 48,141,732
CHANGE IN NET POSITION 23,180,989 651,558 15,586,189 2,492,527 41,911,263
NET POSITION - October 1 324,299,576 7,789,847 201,461,721 57,374,787 590,925,931
NET POSITION - September 30 347,480,565$ 8,441,405$ 217,047,910$ 59,867,314$ 632,837,194$
CITY OF GAINESVILLE, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION AND OPEB TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014
154
Schedules Page
Financial Trends 156 These schedules provide financial trend information, which shows how the City's financial performance has changed over time.
Revenue Capacity 161 These schedules provide additional information about Property Tax and Utility Revenues, the City's most significant local revenue sources.
Debt Capacity 171
These schedules provide detailed information about the City's current levels of outstanding debt, and can help the financial statement user assess the City's ability to issue additional debt in the future.
Demographic and Economic Information 174
These schedules present demographic and economic indicators to assist the financial statement user in understanding the environment in which the City's financial activities occur.
Operating Information 176 These schedules contain service and infrastructure data to help the financial statement user understand how the information in the City's financial statements relates to the services the City provides.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
This part of the City of Gainesville, Florida's comprehensive annual financial report presents additional information to assist users in understanding how the information provided in the financial statements, note disclosures, and required supplementary information impacts the City's overall financial health.
STATISTICAL SECTION SUMMARY
155
City of Gainesville Net Position By Component
Last Ten Fiscal Years (accrual basis of accounting)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmental activities: Invested in capital assets, net of related debt 82,168,018$ 81,644,688$ 92,860,038$ 96,668,703$ 109,776,558$ 116,698,998$ 127,383,906$ 133,198,609$ 147,982,728$ 163,117,931$ Restricted 23,255,620 23,804,426 24,744,773 32,633,862 54,338,573 63,393,549 66,834,959 63,041,610 52,874,367 42,462,127 Unrestricted (3,020,760) 4,675,292 8,536,785 11,236,904 8,569,078 10,754,370 17,050,427 16,993,135 11,105,349 17,334,531
Total governmental activities net position 102,402,878$ 110,124,406$ 126,141,596$ 140,539,469$ 172,684,209$ 190,846,917$ 211,269,292$ 213,233,354$ 211,962,444$ 222,914,589$
Business-type activities: Invested in capital assets, net of related debt 322,442,298$ 331,146,120$ 349,405,887$ 355,005,449$ 355,449,225$ 373,193,617$ 350,932,231$ 368,031,597$ 362,258,572$ 387,916,136$ Restricted 48,655,890 41,927,823 38,409,591 47,479,252 59,072,730 74,411,130 84,940,717 85,067,843 88,409,575 60,971,377 Unrestricted 15,864,688 12,602,059 21,512,560 30,115,444 57,894,750 55,460,731 102,951,974 110,159,236 113,807,653 134,105,632
Total business-type activities net position 386,962,876$ 385,676,002$ 409,328,038$ 432,600,145$ 472,416,705$ 503,065,478$ 538,824,922$ 563,258,676$ 564,475,800$ 582,993,145$
Total primary government: Invested in capital assets, net of related debt 404,610,316$ 412,790,808$ 442,265,925$ 451,674,152$ 465,225,783$ 489,892,615$ 478,316,137$ 501,230,206$ 510,241,300$ 551,034,067$ Restricted 71,911,510 65,732,249 63,154,364 80,113,114 113,411,303 137,804,679 151,775,676 148,109,453 141,283,942 103,433,504 Unrestricted 12,843,928 17,277,351 30,049,345 41,352,348 66,463,828 66,215,101 120,002,401 127,152,371 124,913,002 151,440,163
Total primary government net position 489,365,754$ 495,800,408$ 535,469,634$ 573,139,614$ 645,100,914$ 693,912,395$ 750,094,214$ 776,492,030$ 776,438,244$ 805,907,734$
156
City of Gainesville Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
2005 2006 2007 2008 2009 Expenses Governmental activities: General government 23,677,037$ 24,048,427$ 17,066,712$ 19,676,597$ 20,156,210$ Public safety 54,281,144 47,701,143 49,394,763 51,608,781 52,968,413 Physical environment 3,055,388 3,243,727 2,790,089 1,144,211 1,126,951 Transportation 8,548,157 10,506,470 12,220,979 11,787,373 4,527,795 Economic environment 4,616,810 5,787,916 8,492,950 8,118,429 7,537,152 Human services 1,268,499 1,043,843 284,999 367,706 293,829 Culture & recreation 5,641,593 5,916,408 6,527,215 8,784,045 9,479,058 Interest on long-term debt 5,296,200 7,539,632 7,504,485 7,420,509 7,367,850 Total governmental activities expenses 106,384,828 105,787,566 104,282,192 108,907,651 103,457,258
Business-type activities: Electric 165,714,007 200,086,670 192,569,894 226,444,987 230,822,719 Gas 25,011,786 30,563,089 27,732,906 29,688,866 24,405,725 Water 16,373,985 18,267,647 18,895,269 21,282,566 21,323,742 Wastewater 20,179,076 22,266,780 22,704,103 26,027,811 24,722,167 GRUCom 7,763,554 8,481,545 8,421,765 10,437,988 9,993,228 Regional transit system 15,407,545 16,521,738 17,282,667 19,234,349 18,275,948 Stormwater management 4,563,029 5,061,984 5,095,939 4,774,960 4,650,703 Ironwood golf course 1,243,518 1,309,847 1,325,727 1,317,753 1,259,517 Florida building code enforcement - - 1,783,856 2,025,997 2,577,306 Solid waste 5,441,243 6,635,067 10,009,758 6,993,233 6,285,562 Total business-type activities expenses 261,697,743 309,194,367 305,821,884 348,228,510 344,316,617 Total primary government expenses 368,082,571$ 414,981,933$ 410,104,076$ 457,136,161$ 447,773,875$
Program Revenues Governmental activities: Charges for services: General government 6,656,239$ 8,120,988$ 8,923,828$ 9,822,901$ 9,949,536$ Public safety 8,000,564 4,704,098 3,903,871 3,571,167 3,824,888 Other charges for services 3,182,821 3,983,052 4,958,140 4,648,919 3,933,103 Operating grants and contributions 13,058,351 8,097,602 6,109,549 7,606,468 7,634,880 Capital grants and contributions 191,600 1,617,534 8,093,971 6,822,160 15,249,638 Total governmental activities program revenues 31,089,575 26,523,274 31,989,359 32,471,615 40,592,045 Business-type activities: Charges for services: Electric 174,046,207 207,023,570 206,552,756 238,595,628 249,761,764 Other utilities 65,854,837 78,332,531 85,133,356 94,775,804 96,097,911 Other charges for services 21,373,897 22,639,670 29,289,277 28,055,330 27,672,309 Operating grants and contributions 3,400,623 3,567,605 6,191,062 9,103,954 7,739,337 Capital grants and contributions 9,632,321 9,492,873 15,903,334 5,134,693 4,253,489 Total business-type activities program revenues 274,307,885 321,056,249 343,069,785 375,665,409 385,524,810 Total primary government program revenues 305,397,460$ 347,579,523$ 375,059,144$ 408,137,024$ 426,116,855$
Net (Expense)/Revenue Governmental activities (75,295,253)$ (79,264,292)$ (72,292,833)$ (76,436,036)$ (62,865,213)$ Business-type activities 12,610,142 11,861,882 37,247,901 27,436,899 41,208,193 Total primary government net revenue (62,685,111)$ (67,402,410)$ (35,044,932)$ (48,999,137)$ (21,657,020)$
General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes 19,365,334$ 22,094,936$ 25,974,094$ 26,163,266$ 26,499,911$ Other taxes 18,928,506 19,989,122 19,906,074 22,432,162 24,326,238 State revenue sharing 4,117,607 4,258,238 4,190,182 3,919,560 3,523,204 Intvestment gain (loss) 1,564,126 3,413,776 5,862,894 2,744,915 3,240,737 Other revenues 1,894,572 2,312,756 1,318,358 3,142,232 2,817,165 Total governmental activities 45,870,145 52,068,828 57,251,602 58,402,135 60,407,255 Business-type activities: Interest 4,388,999 10,217,610 11,581,622 9,370,421 6,930,659 Other revenues 14,624,051 6,944,982 5,880,934 18,896,561 26,280,406 Total business-type activities 19,013,050 17,162,592 17,462,556 28,266,982 33,211,065 Total primary government 64,883,195$ 69,231,420$ 74,714,158$ 86,669,117$ 93,618,320$
Changes in Net Position (including transfers, special items and extraordinary items) Governmental activities (1,189,518)$ 3,115,884$ 16,017,190$ 14,397,873$ 32,049,638$ Business-type activities 3,387,602 (1,286,874) 23,652,036 23,272,107 39,911,662 Total primary government 2,198,084$ 1,829,010$ 39,669,226$ 37,669,980$ 71,961,300$
157
Expenses Governmental activities: General government Public safety Physical environment Transportation Economic environment Human services Culture & recreation Interest on long-term debt Total governmental activities expenses
Business-type activities: Electric Gas Water Wastewater GRUCom Regional transit system Stormwater management Ironwood golf course Florida building code enforcement Solid waste Total business-type activities expenses Total primary government expenses
Program Revenues Governmental activities: Charges for services: General government Public safety Other charges for services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business-type activities: Charges for services: Electric Other utilities Other charges for services Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues
Net (Expense)/Revenue Governmental activities Business-type activities Total primary government net revenue
General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes Other taxes State revenue sharing Intvestment gain (loss) Other revenues Total governmental activities Business-type activities: Interest Other revenues Total business-type activities Total primary government
Changes in Net Position (including transfers, sp Governmental activities Business-type activities Total primary government
2010 2011 2012 2013 2014
18,762,647$ 18,698,649$ 16,546,820$ 17,814,078$ 16,176,189$ 56,238,741 57,166,952 59,735,600 62,938,271 64,021,054 1,510,055 1,116,462 2,218,153 3,799,039 2,871,836
14,089,516 13,982,396 18,686,598 18,410,169 15,142,893 7,239,951 6,402,656 9,164,986 6,809,885 8,602,592
593,420 1,250,715 581,239 384,825 2,216,579 8,713,366 8,433,374 9,705,943 9,551,902 9,332,876 7,632,165 7,580,944 7,390,511 7,248,291 6,711,350
114,779,861 114,632,148 124,029,850 126,956,460 125,075,369
234,835,876 228,544,484 221,494,502 227,350,282 291,110,843 24,599,071 24,336,197 21,898,283 21,436,501 22,764,377 22,290,808 22,945,996 24,458,151 24,988,038 25,516,070 24,925,561 27,068,964 27,072,938 27,618,138 27,740,855 10,719,866 10,907,359 11,160,732 10,504,492 11,761,638 20,299,166 20,196,358 21,458,507 23,167,649 24,279,240 5,486,082 5,030,742 6,376,271 6,283,365 6,351,290 1,304,741 1,419,653 1,454,435 1,401,017 1,456,632 2,362,379 2,263,325 2,156,163 2,042,119 2,306,430 7,101,229 7,320,642 7,377,876 7,237,205 7,594,037
353,924,779 350,033,720 344,907,858 352,028,806 420,881,412 468,704,640$ 464,665,868$ 468,937,708$ 478,985,266$ 545,956,781$
10,078,544$ 10,434,927$ 10,701,617$ 11,418,234$ 13,124,551$ 2,692,994 8,696,812 7,945,799 8,238,633 8,399,721 4,474,776 3,427,670 4,500,224 3,769,211 3,962,570 6,817,388 8,405,085 8,537,676 8,170,095 7,036,634 8,224,492 7,130,480 2,862,493 7,570,791 5,061,574
32,288,194 38,094,974 34,547,809 39,166,964 37,585,050
262,530,880 250,057,292 230,805,656 228,822,572 268,774,902 95,053,793 101,100,900 96,875,398 97,083,057 99,880,653 28,617,567 30,630,504 32,257,122 33,332,016 34,576,794 11,661,662 5,886,603 6,384,981 14,074,581 25,213,077 3,554,922 5,146,531 7,148,130 3,004,490 5,658,720
401,418,824 392,821,830 373,471,287 376,316,716 434,104,146 433,707,018$ 430,916,804$ 408,019,096$ 415,483,680$ 471,689,196$
(82,491,667)$ (76,537,174)$ (89,482,041)$ (87,789,496)$ (87,490,319)$ 47,494,045 42,788,110 28,563,429 24,287,910 13,222,734
(34,997,622)$ (33,749,064)$ (60,918,612)$ (63,501,586)$ (74,267,585)$
29,016,964$ 26,833,852$ 25,871,976$ 26,077,888$ 26,476,044$ 27,865,426 25,444,169 21,952,397 21,899,384 21,516,536 3,487,190 3,653,017 3,712,905 3,723,420 3,945,358 2,706,332 2,317,663 3,556,870 (4,908,204) 6,061,874 3,593,703 3,082,853 2,993,407 2,826,862 3,495,904
66,669,615 61,331,554 58,087,555 49,619,350 61,495,716
7,176,761 9,242,257 9,234,751 6,653,021 6,871,499 9,962,727 19,357,072 23,308,136 7,175,429 39,459,939
17,139,488 28,599,329 32,542,887 13,828,450 46,331,438 83,809,103$ 89,930,883$ 90,630,442$ 63,447,800$ 107,827,154$
18,162,708$ 20,422,375$ 5,278,076$ (1,270,910)$ 12,571,251$ 30,648,773 35,759,444 24,433,754 1,217,124 20,988,318 48,811,481$ 56,181,819$ 29,711,830$ (53,786)$ 33,559,569$
(concluded)
City of Gainesville Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
158
City of Gainesville Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis of accounting)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General fund: Nonspendable -$ -$ -$ -$ -$ -$ 3,474,278$ 3,363,691$ 2,959,587$ 2,753,498$ Assigned - - - - - - 1,060,672 2,236,549 772,730 1,494,098 Unassigned - - - - - - 16,433,938 12,087,485 13,408,146 14,520,395 Reserved * 4,911,387 8,397,572 4,925,724 4,629,909 4,768,553 4,051,937 - - - - Unreserved * 7,235,562 7,844,042 11,826,843 9,818,911 9,659,258 11,264,725 - - - - Total general fund 12,146,949$ 16,241,614$ 16,752,567$ 14,448,820$ 14,427,811$ 15,316,662$ 20,968,888$ 17,687,725$ 17,140,463$ 18,767,991$
All other governmental funds: Restricted -$ -$ -$ -$ -$ -$ 70,813,952$ 64,831,266$ 56,363,125$ 45,981,942$ Committed - - - - - - 782,237 782,237 901,448 1,361,332 Assigned - - - - - - 10,370,993 16,633,174 12,555,440 9,632,021 Unassigned - - - - - - (29,288) (3,067,169) (2,499,106) (2,121,436) Reserved * 4,882,686 4,744,154 5,215,953 8,635,651 12,958,151 12,066,838 - - - - Unreserved, reported in: * Special revenue funds 8,385,893 14,016,419 17,059,686 19,457,506 20,652,435 17,677,648 - - - - Capital projects funds 9,630,545 32,065,513 30,400,097 26,667,704 47,356,632 54,624,332 - - - - Debt service funds 356,496 231,073 544,869 784,834 819,434 965,256 - - - - Total all other governmental funds 23,255,620$ 51,057,159$ 53,220,605$ 55,545,695$ 81,786,652$ 85,334,074$ 81,937,894$ 79,179,508$ 67,320,907$ 54,853,859$
* GASB 54 was implemented in FY11, which changed the presentation of fund balance components.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General Fund - Fund Balance
159
City of Gainesville Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis of accounting)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Revenues Taxes 32,679,841$ 35,853,540$ 40,954,740$ 44,919,849$ 48,660,333$ 55,238,898$ 49,781,834$ 45,404,192$ 45,099,581$ 44,949,416$ Licenses and permits 2,896,874 3,073,214 648,571 1,060,465 770,664 745,274 832,814 866,236 899,441 950,644 Intergovernmental 22,974,018 26,284,052 28,253,027 25,763,178 35,152,327 26,966,627 28,665,033 24,685,016 29,719,620 27,502,531 Charges for services 8,856,453 8,755,754 9,285,755 9,380,880 8,918,343 9,134,011 13,375,534 15,054,350 14,389,653 15,533,253 Fines and forfeitures 5,262,937 1,615,725 2,119,270 2,274,774 2,502,515 1,726,229 2,629,506 1,796,110 1,985,956 1,824,055 Miscellaneous 3,291,883 5,186,443 6,875,578 7,227,407 4,263,958 4,727,669 3,936,894 4,450,048 (1,599,295) 7,020,464 Total revenues 75,962,006 80,768,728 88,136,941 90,626,553 100,268,140 98,538,708 99,221,615 92,255,952 90,494,956 97,780,363
Expenditures General government 51,239,460 15,054,459 15,920,764 16,470,644 16,588,882 16,110,505 14,707,657 14,999,927 14,857,602 15,191,905 Public safety 52,511,787 48,188,830 48,197,056 49,867,812 51,474,948 52,936,750 54,085,573 55,405,967 57,644,637 60,050,160 Physical environment 2,454,447 2,783,658 2,853,920 971,472 1,220,036 949,027 746,462 1,020,714 3,422,270 2,345,811 Transportation 8,771,221 10,128,414 10,993,376 11,590,424 12,043,680 12,669,257 13,165,523 12,481,951 12,117,326 13,493,390 Economic environment 4,414,062 5,530,992 6,009,987 7,634,661 7,938,012 9,710,604 9,040,688 7,961,882 7,324,538 8,322,502 Human services 1,188,621 1,031,754 336,491 410,920 293,829 593,420 1,123,442 554,740 390,769 819,536 Culture and recreation 5,483,963 6,117,126 6,206,272 8,165,959 8,727,210 8,813,164 7,683,761 7,998,869 8,282,530 8,138,572 Debt service: Principal 4,010,000 6,227,053 6,920,902 7,747,796 7,822,049 8,511,383 9,192,493 10,332,810 9,886,531 12,884,423 Interest 5,255,490 7,422,640 7,442,180 7,336,659 7,125,182 7,472,387 7,489,706 7,283,092 7,127,610 6,803,431 Bond issuance costs 628,399 301,727 26,566 - 36,004 84,974 - 67,243 - 41,837 Capital outlay 5,160,215 5,801,349 13,609,187 12,967,402 9,801,087 13,410,389 15,369,816 17,741,445 21,958,840 18,682,145 Total expenditures 141,117,665 108,588,002 118,516,701 123,163,749 123,070,919 131,261,860 132,605,121 135,848,640 143,012,653 146,773,712
Excess of revenues under expenditures (65,155,659) (27,819,274) (30,379,760) (32,537,196) (22,802,779) (32,723,152) (33,383,506) (43,592,688) (52,517,697) (48,993,349)
Other Financing Sources (Uses) Debt issuance 40,850,000 25,956,621 1,540,000 - 11,500,000 3,036,907 - 9,960,000 - 14,715,000 Bond premium/discount (38,314) 39,168 (13,434) - - (15,320) - - - - Deposit to refund escrow - - - - - - - - - - Transfers in 45,341,847 70,441,342 46,789,277 50,638,004 67,675,683 54,268,164 54,072,623 67,533,715 61,955,075 59,810,683 Transfers out (17,106,257) (39,695,572) (15,261,684) (18,079,465) (29,013,693) (20,130,326) (18,433,071) (30,755,032) (21,843,241) (21,656,854) Payments to refunded bond escrow age - - - - - - - (6,230,000) - (14,715,000) Total other financing sources (uses) 69,047,276 56,741,559 33,054,159 32,558,539 50,161,990 37,159,425 35,639,552 40,508,683 40,111,834 38,153,829
Net change in fund balances 3,891,617$ 28,922,285$ 2,674,399$ 21,343$ 27,359,211$ 4,436,273$ 2,256,046$ (3,084,005)$ (12,405,863)$ (10,839,520)$
Debt service as a percentage of noncapital expenditures 7.48% 14.11% 13.95% 13.99% 14.61% 14.33% 14.80% 14.38% 13.22% 15.96%
160
City of Gainesville Assessed Value of Taxable Property
Last Ten Fiscal Years
Fiscal Year Centrally Total Taxable Total
Ended Tax Real Personal Assessed Assessed Direct September 30, Year Property Property Property Governmental Agricultural Institutional Homestead Other Value Tax Rate
2005 2004 7,244,067,100 1,493,401,961 1,737,804 3,641,123,420 34,963,100 369,084,360 876,134,257 12,690,560 3,805,211,168 4.9416
2006 2005 7,991,469,700 1,523,306,918 1,033,801 3,723,073,730 39,875,900 388,002,325 1,014,315,873 13,456,130 4,337,086,461 4.9355
2007 2006 9,127,221,600 1,475,928,616 1,025,098 3,801,414,175 34,506,400 562,036,537 1,221,910,900 15,135,250 4,969,172,052 4.8509
2008 2007 10,059,735,400 1,931,740,674 1,111,824 4,354,225,897 28,451,900 574,033,101 1,385,629,369 16,885,367 5,633,362,264 4.2544
2009 2008 10,599,500,250 1,732,004,529 1,149,322 4,195,267,980 35,549,700 647,733,978 1,773,423,757 14,341,607 5,666,337,079 4.2544
2010 2009 10,534,674,944 2,245,414,910 1,234,487 4,251,801,982 39,408,200 874,389,881 1,594,957,710 134,747,020 5,886,019,548 4.3963
2011 2010 10,569,755,018 2,241,968,355 987,726 4,815,548,071 37,517,700 896,937,822 1,313,405,085 141,081,893 5,608,220,528 4.2544
2012 2011 10,756,478,800 2,308,068,145 1,130,083 5,343,081,038 39,115,900 1,029,746,160 1,134,254,774 117,240,859 5,402,238,297 4.2544
2013 2012 10,437,604,712 2,386,565,278 1,073,991 5,408,327,315 37,576,500 1,112,522,902 993,996,869 109,161,684 5,163,658,711 4.4946
2014 2013 10,508,455,900 2,979,114,148 2,210,823 5,603,063,413 39,298,000 1,119,027,154 895,414,243 178,841,271 5,654,136,790 4.5780
Source: Alachua County Property Appraiser
Note: The Property Appraiser assesses the value of property in a manner that does not provide a reasonable basis for estimating the actual value of property.
Exempt property makes up 58% of total assed value. Disclosing the nature of the exemptions provides more relevant information than detailing real property categories.
Just Value Exemptions
-
2
4
6
8
10
12
14
16
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
B il li o
n s
Just and Taxable Values
Total Just Value
Total Taxable Assesed Value
161
City of Gainesville Property Tax Rates
Direct and Overlapping Governments Last Ten Fiscal Years
(rate per $1,000 assessed value)
City of Alachua St. Johns Alachua Total Gainesville County Water County Direct &
Fiscal Tax Direct Alachua School Management Library Overlapping Year Year Rate County District District District Rates
2005 2004 4.9416 9.2387 9.2240 0.4620 1.6566 25.5229
2006 2005 4.9355 9.2387 9.0340 0.4620 1.5920 25.2622
2007 2006 4.8509 9.1387 8.5710 0.4620 1.5615 24.5841
2008 2007 4.2544 7.8968 8.3950 0.4158 1.3560 22.3180
2009 2008 4.2544 7.8208 8.3590 0.4158 1.3406 22.1906
2010 2009 4.3963 8.2995 9.4080 0.4158 1.3771 23.8967
2011 2010 4.2544 8.6263 9.1070 0.4158 1.4736 23.8771
2012 2011 4.2544 8.5956 9.0920 0.3313 1.4790 23.7523
2013 2012 4.4946 8.5956 8.5490 0.3313 1.4768 23.4473
2014 2013 4.5780 8.7990 8.4020 0.3283 1.4588 23.5661
Source: Alachua County Property Appraiser
Notes: The City's direct property tax rate is limited to a maximum rate of 10.0. Overlapping rates are those of other local and county governments that apply to property owners within the City.
Overlapping Rates
-
5.00
10.00
15.00
20.00
25.00
30.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Overlapping Millage Rates (for City Residents)
City of Gainesville Alachua County Alachua County School District St Johns Water Mgmt Alachua Co Library
162
Percentage of Percentage of Total Total Taxable Total Total Taxable
Assessed Assessed Assessed Assessed Value Rank Value Value Rank Value
Gainesville Renewable Energy Center Inc. 362,134,210$ 1 6.40% - n/a Oaks Mall Gainesville LTD 125,384,280 2 2.22% 83,529,900$ 1 2.20% HCA Health Services of Florida, Inc. 80,859,200 3 1.43% 53,575,100 3 1.41% AT & T Mobility LLC 61,564,717 4 1.09% - n/a Oak Hammock at the Univ of Florida, Inc. 55,558,520 5 0.98% - n/a North Florida Regional Hospital 50,955,190 6 0.90% 20,115,040 8 0.53% S Clark Butler Properties Land Trust 42,296,670 7 0.75% - n/a Duke Energy Florida Inc. 34,233,266 8 0.61% - n/a Cox Comm Inc. 33,260,931 9 0.59% 18,717,390 10 0.49% Walmart Stores East LP 30,798,740 10 0.54% - n/a Bellsouth Telecommunications - n/a 64,389,000 2 1.69% Florida Power Corp - n/a 39,382,900 4 1.03% Metal Container Corporation - n/a 22,499,000 5 0.59% Colonial Realty Ltd partnership - n/a 21,582,400 6 0.57% Gainesville Place LLC - n/a 20,159,100 7 0.53% Campus Lodge of Gainesville, LTD - n/a 18,814,970 9 0.49%
Total 877,045,724$ 15.51% 362,764,800$ 9.53%
Source: Alachua County Property Appraiser
City of Gainesville Principal Property Taxpayers
Current Year and Nine Years Ago
2014 2005
163
Fiscal Year Total Tax Collections in Ended Levy for Subsequent
September 30, Fiscal Year Amount Percentage of Levy Years Amount Percentage of Levy
2005 18,725,816 18,055,672 96.4% 38,366 18,094,038 96.6% 2006 21,201,414 20,448,202 96.4% 39,470 20,487,672 96.6% 2007 24,010,640 23,172,540 96.5% 28,915 23,201,455 96.6% 2008 23,854,419 23,035,894 96.6% 29,460 23,065,354 96.7% 2009 24,020,009 23,191,605 96.6% 50,404 23,242,009 96.8% 2010 25,782,262 24,912,341 96.6% 64,268 24,976,609 96.9% 2011 23,802,971 23,007,885 96.7% 15,953 23,023,838 96.7% 2012 22,865,258 22,085,295 96.6% 32,170 22,117,465 96.7% 2013 23,183,944 22,288,394 96.1% 28,362 22,316,756 96.3% 2014 23,585,587 22,573,803 95.7% n/a 22,573,803 95.7%
Source: Alachua County Tax Collector
Fiscal Year of the Levy Total Collections to Date
City of Gainesville Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
164
City of Gainesville Utility Base
Number of Customers and Sales Quantities Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Number of Customers Electric: Residential Electric 77,918 79,262 80,237 82,399 82,668 82,038 81,900 82,039 82,440 83,117 Non-residential Electric 9,342 9,555 9,675 10,450 10,461 10,383 10,372 10,422 10,467 10,602 Water 64,620 66,405 67,774 69,784 69,496 68,819 68,952 69,329 69,847 70,300 Wastewater 57,166 59,206 60,205 61,552 62,071 61,999 62,164 62,536 63,001 63,501 Natural Gas 31,700 32,520 33,125 33,777 33,451 33,202 33,208 33,264 33,465 33,780
Sales Electric (gigawatt hours): Residential Electric 875 901 878 829 807 857 821 754 752 772 Non-residential Electric 1,164 981 983 992 964 994 967 945 930 942 Gallons of Water (million gallons) 7,697 8,315 9,053 8,435 7,892 7,371 7,775 7,369 6,964 6,822 Gallons of Wastewater (million gallons) 5,322 5,402 6,271 5,229 4,899 4,696 4,666 4,706 4,603 4,528 Therms of Natural Gas (million therms) 22 22 21 21 21 23 22 18 19 21
Source: GRU Annual Reports
-
50,000
100,000
150,000
200,000
250,000
300,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of Utility Customers
Natural Gas
Wastewater
Water
Non-residential Electric
Residential Electric
165
City of Gainesville Utility Rates
Last Ten Fiscal Years
2005 2006 2007 2008 2009
Electric: Residential Service - Standard
Customer Charge per month 4.89$ 5.17$ 5.17$ 5.54$ 7.60$ Energy Charge 2 per kWh
0-250 kWh n/a n/a 0.02400 0.02500 0.02600 250-750 kWh 0.04613 0.04982 0.05800 0.06500 0.06600 over 750 kWh 0.05966 0.07398 0.08300 0.09700 0.09800
Residential Service - Peak Periods Customer Charge per month 8.25 8.75 8.75 9.36 17.60 Energy Charge 2 per kWh
On-Peak 0.09880 0.12251 0.10280 0.11000 0.13900 Off-Peak 0.03100 0.03351 0.03230 0.03500 0.03500
General Service Non-Demand & Demand < 50 kW Customer Charge per month 8.79 15.18 15.18 16.00 16.00 Energy Charge 2 per kWh
0-1500 kWh 0.05090 0.05548 0.05548 0.06200 0.06800 over 1500 kWh 0.06087 0.07183 0.07183 0.08000 0.09500
Business Partner Discount Rate 7% 7% 7% 0% 0% General Service Demand - 50kW > Demand < 1000 kW
Customer Charge per month 16.61 30.92 30.92 33.00 45.00 Demand Charge per kW 6.33 7.56 7.56 9.00 9.20 Energy Charge 2 per kWh 0.02400 0.02633 0.02633 0.02900 0.03200 Business Partner Discount Rate 10% 10% 10% 0% 0%
Large Power Service - Demand > 1000 kW Customer Charge per month 63.88 245.05 245.05 265.00 300.00 Demand Charge per kW 5.85 7.08 7.08 9.00 9.20 Energy Charge 2 per kWh 0.02350 0.02597 0.02597 0.02700 0.03100 Business Partner Discount Rate 13% 13% 13% 0% 0%
Water: Residential Service
Customer Charge per month 3.53 4.86 4.86 5.35 7.00 Usage Charge 3 per kGal
1,000 - 6,000 1.27 1.42 1.42 1.56 1.59 7,000 - 20,000 1.69 2.35 2.35 2.82 3.11 Over 21,000 2.91 4.04 4.04 4.93 5.50
Non-Residential Service Customer Charge per month 3.53 4.86 4.86 5.35 7.00 Usage Charge per kGal 1.69 2.35 2.35 2.82 3.11
Irrigation Service Customer Charge 4 per month 3.53 4.86 4.86 4.86 4.86 Usage Charge per kGal
1,000 - 14,000 1.69 2.35 2.35 2.82 3.11 15,000 or more 2.91 4.04 4.04 4.93 5.50 Non-residential n/a n/a n/a n/a n/a
University of Florida Customer Charge per month 3.53 4.86 4.86 5.35 7.00 Usage Charge per kGal
On-Campus 0.91 1.04 1.04 1.13 1.54 Off-Campus 1.11 1.15 1.15 1.30 1.80
City of Alachua Customer Charge per month 3.53 3.53 4.86 5.35 7.00 Usage Charge per kGal 1.08 1.35 1.21 1.33 1.45
Fire Hydrant History of Monthly Charges Installed, Maintained, Supported Maintained, Supported Supported only (UF)
(continued)
166
City of Gainesville Utility Rates
Last Ten Fiscal Years
Electric: Residential Service - Standard
Customer Charge per month Energy Charge 2 per kWh
0-250 kWh 250-750 kWh over 750 kWh
Residential Service - Peak Periods Customer Charge per month Energy Charge 2 per kWh
On-Peak Off-Peak
General Service Non-Demand & Demand < 50 kW Customer Charge per month Energy Charge 2 per kWh
0-1500 kWh over 1500 kWh
Business Partner Discount Rate General Service Demand - 50kW > Demand < 1000 kW
Customer Charge per month Demand Charge per kW Energy Charge 2 per kWh Business Partner Discount Rate
Large Power Service - Demand > 1000 kW Customer Charge per month Demand Charge per kW Energy Charge 2 per kWh Business Partner Discount Rate
Water: Residential Service
Customer Charge per month Usage Charge 3 per kGal
1,000 - 6,000 7,000 - 20,000 Over 21,000
Non-Residential Service Customer Charge per month Usage Charge per kGal
Irrigation Service Customer Charge 4 per month Usage Charge per kGal
1,000 - 14,000 15,000 or more Non-residential
University of Florida Customer Charge per month Usage Charge per kGal
On-Campus Off-Campus
City of Alachua Customer Charge per month Usage Charge per kGal
Fire Hydrant History of Monthly Charges Installed, Maintained, Supported Maintained, Supported Supported only (UF)
2010 2011 2012 2013 2014
8.45$ 8.45$ 8.67$ 8.67$ 11.90$
0.02800 0.03200 0.03400 0.03400 0.03900 0.06700 0.06800 0.06800 0.06800 0.05000 0.10200 0.10200 0.10200 0.10200 0.09400
17.60 17.60 17.60 17.60 17.60
0.13900 0.13900 0.13900 0.13900 0.13900 0.03500 0.03500 0.03500 0.03500 0.03500
25.50 26.00 26.00 26.00 30.00
0.07000 0.08000 0.08000 0.08000 0.07600 0.10300 0.10800 0.10800 0.10800 0.10600
0% 0% 0% 0% 0%
45.00 50.00 50.00 50.00 100.00 9.25 9.25 9.25 9.25 9.25
0.04200 0.05100 0.05100 0.05100 0.04500 0% 0% 2% 2% 2%
300.00 300.00 300.00 300.00 350.00 9.25 9.25 9.25 9.25 9.25
0.03900 0.04600 0.04600 0.04600 0.04050 0% 0% 2% 2% 2%
7.30 7.75 8.65 8.70 9.00
1.65 1.99 2.05 2.20 2.30 3.30 3.65 3.65 3.75 3.75 6.00 6.00 6.00 6.00 6.00
7.30 7.75 8.65 8.70 9.00 3.30 3.40 3.65 3.75 3.80
7.30 7.75 8.65 8.70 9.00
3.30 3.65 3.65 3.75 3.75 6.00 6.00 6.00 6.00 6.00 4.35 4.40 4.40 4.45 4.50
7.30 7.75 8.65 8.70 9.00
1.92 1.67 2.17 2.16 2.18 2.67 2.57 3.21 3.13 2.77
7.30 7.75 8.65 8.70 9.00 1.51 1.62 1.62 1.62 1.62
(continued)
167
City of Gainesville Utility Rates
Last Ten Fiscal Years
2005 2006 2007 2008 2009
Wastewater: Residential Service
Customer Charge per month 2.75 3.52 3.52 4.00 6.00 Usage Charge per kGal 3.16 3.94 3.94 4.63 4.94
Residential not connected , but required to be by ordinance 18.55 23.22 23.22 23.22 23.22
Residential, on wells, flat rate per month 18.55 23.22 23.22 23.22 23.22
Multi-family Customer Charge per month 2.75 3.52 3.52 4.00 6.00 Usage Charge - flat rate per month 15.70 19.70 19.70 23.15 24.70
Non-Residential Service Customer Charge per month 2.75 3.52 3.52 4.00 6.00 Usage Charge per kGal 3.16 3.94 3.94 4.63 4.94
Tacachale Customer Charge per month 3,370.69 4,213.36 4,213.36 4,929.63 5,259.69 Usage Charge per kGal 1.07 1.34 1.34 1.36 1.44
University of Florida - Maguire Village Customer Charge per month 2.11 2.70 n/a n/a n/a Usage Charge per kGal 1.55 1.98 n/a n/a n/a
Natural Gas: Residential Service
Customer Charge per month 7.04 7.04 7.04 7.15 9.52 Energy Charge1 per therm 0.40537 0.40537 0.40537 0.42400 0.48300 MGP per therm 0.03210 0.03210 0.03210 0.03210 0.03700
General Firm Service Customer Charge per month 17.60$ 17.60$ 17.60$ 19.89$ 30.00$ Energy Charge1 per therm 0.23490$ 0.23490$ 0.23490$ 0.26990$ 0.30800$ MGP per therm 0.03210$ 0.03210$ 0.03210$ 0.32100$ 0.03700$
Interruptible Service Customer Charge per month 351.90$ 351.90$ 351.90$ 360.00$ 375.00$ Energy Charge2 per therm 0.17153$ 0.17153$ 0.17153$ 0.20590$ 0.28600$ MGP per therm 0.03210$ 0.03210$ 0.03210$ 0.03210$ 0.03700$
Contract Interruptible Service Customer Charge per month 351.90$ 351.90$ 351.90$ 360.00$ 375.00$ Energy Charge3 per therm by contract by contract MGP per therm 0.03210$ 0.03210$ 0.03210$ 0.03210$ 0.03700$
Large Volume Interruptible Service Customer Charge per month 351.90$ 351.90$ 351.90$ 351.90$ 375.00$ Energy Charge2 per therm 0.10486$ 0.10486$ 0.10486$ 0.11990$ 0.14268$ MGP per therm 0.03210$ 0.03210$ 0.03210$ 0.03210$ 0.03700$
Liquid Propane (LP) Service Customer Charge per month 7.04$ 7.04$ 7.04$ 7.15$ 9.52$ Energy Charge4 per gallon 3-yr recovery 0.64513$ 0.64513$ 0.64513$ 0.64513$ 0.64513$ 5-yr recovery 0.59513$ 0.59513$ 0.59513$ 0.59513$ 0.59513$ 7-yr recovery 0.57013$ 0.57013$ 0.57013$ 0.57013$ 0.57013$ > 7-yr recovery 0.52513$ 0.52513$ 0.52513$ 0.52513$ 0.52513$ Basic (no recovery) n/a n/a n/a n/a n/a
Average Annual PGA per therm 1.03350$
Notes: (continued) 1 Includes $0.06906 per therm of fuel 2 Includes 6.5 mills/kWh of fuel 4 Effective October 1, 2013 previously 0-15,000, over 15,000 3 Effective October 1, 2013; previously
2011-2012 0-7,000,7001-20,000; Source: GRU Annual Reports
168
City of Gainesville Utility Rates
Last Ten Fiscal Years
Wastewater: Residential Service
Customer Charge per month Usage Charge per kGal
Residential not connected , but required to be by ordinance
Residential, on wells, flat rate per month
Multi-family Customer Charge per month Usage Charge - flat rate per month
Non-Residential Service Customer Charge per month Usage Charge per kGal
Tacachale Customer Charge per month Usage Charge per kGal
University of Florida - Maguire Village Customer Charge per month Usage Charge per kGal
Natural Gas: Residential Service
Customer Charge per month Energy Charge1 per therm MGP per therm
General Firm Service Customer Charge per month Energy Charge1 per therm MGP per therm
Interruptible Service Customer Charge per month Energy Charge2 per therm MGP per therm
Contract Interruptible Service Customer Charge per month Energy Charge3 per therm MGP per therm
Large Volume Interruptible Service Customer Charge per month Energy Charge2 per therm MGP per therm
Liquid Propane (LP) Service Customer Charge per month Energy Charge4 per gallon 3-yr recovery 5-yr recovery 7-yr recovery > 7-yr recovery Basic (no recovery)
Average Annual PGA per therm
Notes: 1 Includes $0.06906 per therm of fuel 2 Includes 6.5 mills/kWh of fuel 3 Effective October 1, 2013; previously
2011-2012 0-7,000,7001-20,000; Source: GRU Annual Reports
2010 2011 2012 2013 2014
6.00 6.50 7.40 7.40 7.85 5.07 5.29 5.50 5.80 5.85
31.35 32.95 34.90 36.40 37.10
31.35 32.95 34.90 36.40 37.10
6.00 6.50 7.40 7.40 7.85 25.35 26.45 27.50 29.00 29.25
6.00 6.50 7.40 7.40 7.85 5.07 5.29 5.50 5.80 5.85
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
9.52 9.52 9.52 9.52 9.52 0.48300 0.48300 0.48300 0.47370 0.48200 0.03700 0.04340 0.05050 0.05050 0.05050
30.00$ 35.00$ 35.00$ 35.00$ 40.00$ 0.30800$ 0.34300$ 0.34300$ 0.34300$ 0.34300$ 0.03700$ 0.04340$ 0.05050$ 0.05050$ 0.05000$
375.00$ 375.00$ 375.00$ 375.00$ n/a 0.28600$ 0.31500$ 0.31500$ 0.31500$ n/a 0.03700$ 0.04340$ 0.05050$ 0.05050$ n/a
375.00$ 375.00$ 375.00$ n/a n/a
0.03700$ 0.04340$ 0.05050$ n/a n/a
375.00$ 375.00$ 375.00$ 375.00$ 375.00$ 0.14268$ 0.15730$ 0.15730$ 0.20394$ 0.20394$ 0.03700$ 0.04340$ 0.05050$ 0.05050$ 0.05050$
9.52$ 9.52$ 9.52$ 9.52$ 9.52$
0.64513$ 0.64513$ 0.64513$ n/a n/a 0.59513$ 0.59513$ 0.59513$ n/a n/a 0.57013$ 0.57013$ 0.57013$ 0.63846$ 0.64676$ 0.52513$ 0.52513$ 0.52513$ 0.59346$ 0.60176$ n/a n/a n/a 0.56346$ 0.57176$
(concluded)
169
City of Gainesville Principal Utility Revenue Contributors
Current Year and Nine Years Ago
Percentage Percentage of of
Total Total Utility Total Total Utility Payments Rank Value Payments Rank Value
City of Gainesville $ 9,073,387 1 2.24% $ 7,802,558 1 3.07% Alachua County School Board 6,029,318 2 1.49% 3,454,908 2 1.36% VA Medical Center 5,089,144 3 1.25% 2,082,081 4 0.82% Shands Healthcare 5,067,202 4 1.25% 2,419,960 3 0.95% Publix Super Markets Inc 4,726,285 5 1.16% 1,915,038 5 0.75% North FL Regional Medical Center 4,695,354 6 1.16% 1,723,409 6 0.68% University of Florida 3,478,756 7 0.86% 1,177,283 9 0.46% Alachua County Board of County Comm 2,500,147 8 0.62% 1,409,286 7 0.55% Santa Fe College 2,063,706 9 0.51% 1,220,500 8 0.48% Bell South Telecommunications 1,623,729 10 0.40% - - n/a Metal Container Corp - - 0.00% 1,082,807 10 0.43%
Total $ 44,347,028 10.93% $ 24,287,830 9.55%
Source: GRU Annual Reports
2014 2005
170
Total % of Fiscal Revenue Capital Revenue Revenue Capital Primary Personal Per Year Bonds Notes Lease Bonds Notes Lease Government Income Capita 2005 158,791,270 - - 354,697,051 96,822,250 - 610,310,571 16.48% 5,091 2006 174,699,926 2,319,485 942,136 620,165,000 - - 798,126,547 20.30% 6,601 2007 169,864,822 1,836,310 879,513 616,050,000 - - 788,630,645 19.17% 6,491 2008 162,789,829 1,234,366 808,654 730,495,000 62,000,000 - 957,327,849 21.78% 7,690 2009 155,036,095 11,500,000 740,339 889,600,000 78,965,901 - 1,135,842,335 27.30% 9,021 2010 149,632,743 11,500,000 669,111 859,725,000 66,036,166 - 1,087,563,020 23.18% 8,226 2011 140,886,047 11,128,468 594,846 963,180,000 65,690,256 - 1,181,479,617 25.77% 9,499 2012 125,439,382 20,643,225 517,414 944,695,000 65,337,135 - 1,156,632,156 24.54% 9,335 2013 109,520,348 19,326,461 436,681 912,795,000 64,974,623 - 1,107,053,113 23.46% 8,900 2014 91,918,816 32,562,746 352,505 885,950,000 66,181,064 994,108,278 2,071,073,409 43.02% 16,481
Total % of % of Fiscal City Primary Personal Per Personal Per Year Government Government Income Capita Income Customer 2005 158,791,270 451,519,301 610,310,571 4.29% 1,324 5.91% 1,826 2006 177,961,547 620,165,000 798,126,547 4.53% 1,472 7.54% 2,453 2007 172,580,645 616,050,000 788,630,645 4.19% 1,420 7.08% 2,397 2008 164,832,849 792,495,000 957,327,849 3.75% 1,324 8.49% 2,997 2009 170,242,335 965,600,000 1,135,842,335 4.09% 1,352 11.04% 3,649 2010 165,838,020 921,725,000 1,087,563,020 3.53% 1,254 9.86% 3,500 2011 156,299,617 1,025,180,000 1,181,479,617 3.41% 1,257 10.57% 3,895 2012 149,937,156 1,006,695,000 1,156,632,156 3.18% 1,210 10.01% 3,810 2013 132,258,113 974,795,000 1,107,053,113 2.80% 1,063 9.65% 3,661 2014 129,015,131 1,942,058,278 2,071,073,409 2.68% 1,027 19.02% 7,287
Sources: Personal income information was obtained from the Bureau of Economic Analysis. Population figures were obtained from the Bureau of Economic and Business Research. Customer information was obtained from GRU's Annual Report.
Notes: Details regarding the City's outstanding debt may be found in the Notes to the Financial Statements.
City Government Utility (GRU)
The debt ratios for the primary government include both General Government and GRU. These ratios are shown separately as well to provide more meaningful information.
Utility (GRU)
City of Gainesville Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Presented by City Government and Gainesville Regional Utilities (GRU)
Presented by Governmental and Business-Type Activities
Governmental Activities Business-Type Activities Total
171
Debt Outstanding
Estimated Percentage Applicable
Estimated Share of Direct and
Overlapping Debt
Sales Tax Revenue Bonds 62,180$ 47.91% 29,788$ Alachua County Forever bank loan 4,870,200 47.91% 2,333,152 Capital Improvement bank loan 5,262,000 47.91% 2,520,850 Local Option Gas Tax bank loan 6,404,000 47.91% 3,067,944 Public Improvement Revenue Note 9,900,000 47.91% 4,742,762
Alachua County Library District: Bank loan 3,072,000 47.71% 1,465,798
Alachua County School Board District General Obligation Bonds 2,120,000 43.90% 930,686 State Motor Vehicle License Tax Revenue Bonds 1,067,945 43.90% 468,831 Certificates of Participation 75,455,216 43.90% 33,125,068
Subtotal, Overlapping Debt 48,684,880
City of Gainesville Governmental Activities Direct Debt 124,834,067
Total Direct and Overlapping Governmental Activities Debt 173,518,947$
Notes:
Sources: Alachua County Finance Department, Alachua County School Board and Alachua County Property Appraiser
The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were estimated by dividing the portion of another government unit's taxable value that is within the City's boundaries and dividing it by each unit's total taxable value.
City of Gainesville Direct and Overlapping Governmental Activities Debt
As of September 30, 2014
Governmental Unit Alachua County:
Overlaping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long- term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
172
Principal Interest Coverage Principal Interest Coverage 2005 1,100,340$ 580,000$ 462,613$ 1.0554 254,112,058$ 177,618,895$ 76,493,163$ 9,385,000$ 15,491,978$ 3.0749 2006 1,100,340 600,000 442,613 1.0554 292,422,154 215,149,976 77,272,178 9,815,000 24,292,669 2.2655 2007 1,100,340 620,000 421,313 1.0567 297,747,273 203,665,825 94,081,448 13,015,000 27,530,456 2.3204 2008 1,100,340 645,000 396,513 1.0565 352,615,563 241,084,088 111,531,475 18,555,000 28,572,033 2.3666 2009 1,100,340 670,000 370,713 1.0573 363,585,373 237,644,597 125,940,776 21,985,000 29,077,280 2.4664 2010 1,100,340 700,000 341,163 1.0568 376,339,759 234,351,801 141,987,958 35,045,000 27,123,819 2.2839 2011 1,100,340 735,000 309,362 1.0536 376,167,181 222,620,162 153,547,019 31,055,000 32,952,046 2.3989 2012 1,100,340 770,000 272,683 1.0553 356,680,648 207,130,769 149,549,879 31,900,000 31,855,940 2.3457 2013 1,100,340 810,000 234,813 1.0531 356,409,450 214,466,006 141,943,444 31,900,000 21,964,939 2.6352 2014 1,100,340 850,000 194,313 1.0536 412,169,722 255,797,502 156,372,220 26,845,000 23,392,328 3.1127
Notes: (1)
(2)
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
City of Gainesville Pledged Revenue Coverage
Last Ten Fiscal Years
State Guaranteed Entitlement Revenue Bonds Utilities System Revenue Bonds
Net Available Revenues
Debt Service
Utilities revenues include electric, gas, water, wastewater and telecommunications charges to customers, other utilities revenues (including fees for connection, installation and backflow prevention), rate stabilization transfers, and interest income (excluding interest income earned on construction funds). Source: GRU Annual Reports Operating expenses exclude depreciation and debt service charges.
Fiscal Year
State Guaranteed Entitlement Revenue
Debt Service Utilities
Revenues (1) Less: Operating
Expenses (2)
173
City of Gainesville Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year
(1)
Population
(2) Personal Income
(2) Per Capita
Personal Income
(1) Median Age
(Alachua County)
(3) Public School
Enrollment (Alachua County)
(4)
Unemployment Rate
2005 119,889 7,708,777,000$ 30,890$ 29.4 28,043 3.00% 2006 120,919 8,313,660,000 32,510 29.2 28,118 2.80% 2007 121,497 8,781,243,000 33,866 29.3 27,535 3.00% 2008 124,491 9,240,924,000 35,313 29.6 28,198 4.70% 2009 125,904 8,706,501,000 33,044 29.7 27,100 7.40% 2010 132,217 9,386,000,000 35,488 30.1 28,581 8.30% 2011 124,379 9,819,000,000 36,858 30.5 28,085 8.10% 2012 123,903 10,205,000,000 38,045 30.8 27,491 6.90% 2013 124,391 10,255,284,000 37,929 25.8 27,506 5.30% 2014 125,661 10,357,836,840 38,308 N/A 28,390 4.90%
Note: (a) At the 2012 Year-end, the BEA published revised Personal Income and Per Capita Personal Income
Statistics for years prior. The revised statistics are reflected in this publication. (b) 2012 Personal Income and Per Capital Personal Income are estimates based on a 1% growth rate
from the 2011 BEA data published November 26, 2012.
Sources: (1) The Population and Median Age of Gainesville were obtained from the University of Florida Bureau
of Economic and Business Research
(2) Total Personal Income and Per Capita Personal Income amounts obtained from Bureau of Economic Anaylsis (BEA)
(3) Public School Enrollment information obtained from Alachua County School Board
(4) Unemployment Rates obtained from the United States Department of Labor
174
2014 Percentage Percentage Of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment University of Florida 27,870 1 23.32% 12,297 1 10.57% UF Health 12,000 2 10.04% 8,225 2 7.07% Alachua County School Board 4,200 3 3.51% 4,064 3 3.49% VA Hospital 3,500 4 2.93% 1,627 7 1.40% City of Gainesville 2,270 5 1.90% 2,369 4 2.04% Publix Supermarkets 2,160 6 1.81% 1,876 6 1.61% North Florida Regional Medical Ctr. 2,100 7 1.76% 1,560 8 1.34% Gator Dining Services 1,200 8 1.00% - - n/a Nationwide Insurance 950 9 0.79% 1,058 9 0.91% Wal-Mart Stores 910 10 0.76% - - n/a Alachua County - - n/a 860 10 n/a Florida Dept. Of Children & Family - - n/a 2,319 5 1.99%
Total 57,160 47.83% 36,255 30.44%
Source: Gainesville Area Chamber of Commerce/FloridaWorks
Note: (1) Alachua County employment includes employees of constitutional officers, such as the Sheriff's Office.
2005
City of Gainesville Principal Employers
Current Year and Nine Years Ago
175
City of Gainesville Full-time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Charter Offices: City Commission 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Clerk of the Commission 8.00 8.00 8.00 8.00 8.00 6.50 6.50 5.50 5.50 5.50 Assistant City Manager 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 City Manager's Office 6.00 6.00 6.00 6.00 5.00 4.00 4.00 5.00 5.00 5.00 City Auditor's Office 5.50 5.50 5.50 5.50 5.50 4.50 4.50 4.50 4.50 4.50 City Attorney's Office 14.50 16.00 16.00 16.00 16.00 15.00 15.00 17.00 17.00 18.00 Equal Opportunity Office 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 7.00
General Government: Administrative Services 2.00 5.00 4.50 4.50 4.50 4.00 4.00 4.00 4.00 4.00 Computer Services 16.00 18.00 18.00 18.00 17.00 19.00 17.00 - - - Budget & Finance - 49.00 45.50 45.50 47.00 36.00 37.00 37.00 37.00 37.00
Finance 45.50 - - - - - - - - - Office of Management and Budget 7.50 - - - - - - - - -
Human Resources 21.50 19.00 19.00 19.00 19.00 15.00 15.00 16.00 16.00 17.00 Risk Management 13.00 15.00 15.00 15.00 15.00 15.00 15.00 16.00 16.00 16.50 Communications and Marketing - 7.00 7.00 7.00 5.00 4.00 4.00 4.00 4.00 4.00
Public Safety: Police Officers 278.00 284.00 284.00 284.00 299.00 295.00 301.00 301.00 301.00 306.00 Civilians 73.00 90.00 88.00 94.00 87.00 80.00 80.00 80.00 80.00 85.00 Fire Rescue Officers 143.00 144.00 144.00 144.00 144.00 155.00 158.00 158.00 158.00 166.00 Civilians 8.00 10.00 10.00 10.00 9.00 10.00 7.00 7.00 7.00 8.00
Physical Environment: Codes Enforcement - - 19.00 19.00 19.00 16.00 16.00 16.08 16.08 16.02 Planning & Development Services - - 45.50 46.50 48.00 38.00 38.50 39.50 39.50 40.50
Community Development 59.00 82.50 - - - - - - - - Building Inspection 20.00 - - - - - - - - -
Public Works 158.75 161.75 163.75 163.75 164.75 160.38 161.87 163.38 163.38 162.38 Facilities Management 28.00 - - - - - - - - -
Transportation: Regional Transit System 219.50 232.00 232.00 235.00 236.00 238.00 262.50 272.50 269.50 289.50
- 53.00 52.00 52.00 51.00 48.38 48.38 48.38 48.38 22.00 Fleet Management 30.00 - - - - - - - - 25.38
Economic Environment: Housing - - 8.00 8.00 5.00 1.00 1.70 1.57 1.60 1.57 Community Development Block Grant - - 4.00 4.00 4.00 9.00 8.30 8.30 8.30 8.41 Community Redevelopment Agency - - - 8.00 10.00 11.00 11.00 11.00 11.00 11.00
Economic Development 3.00 3.00 3.00 - - - - 1.00 1.00 1.00
Culture & Recreation: Parks, Recreation and Cultural Affairs - 108.13 103.13 103.00 102.00 80.50 80.50 78.50 78.50 79.50
Cultural Affairs 14.88 - - - - - - - - - Recreation & Parks 87.25 - - - - - - - - -
General Manager for Utilities 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Source: City of Gainesville Budget Division, FTE Report
Notes: In 2014 the General Services Department was restructured into Facilities Management and Fleet Management.
In 2011 the General Government Computer Services department merged with that of Gainesville Regional Utility (GRU). These positions were absorbed by GRU and now provide support to the General Government as contract services.
In 2007, a reorganization was put in place to streamline planning & permitting processes.
In 2006, a major reorganization was implemented which combined various departments. Finance and the Office of Management and Budget were combined into Budget and Finance, Building Inspections was combined with Public Works, Facilities Management and Fleet were combined into General Services, and Cultural Affairs and Recreation & Parks were combined into Parks, Recreation and Cultural Affairs.
General Services/Facilities Management
176
City of Gainesville Operating Indicators by Functional Department
Last Ten Fiscal Years
2005 2006 2007 2008 2009 Fire & EMS 3
Total EMS incidents per 1,000 population served 1.70 1.15 33.78 29.90 33.70 Total Non-EMS incidents per 1,000 population served 96.93 84.65 81.10 90.12 96.20 Total arson incidents per 10,000 population served 0.92 0.66 0.41 1.46 0.64 90th percentile Turnout Time for Fire Apparatus to EMS Incidents - - - - - 90th percentile Turnout Time for Fire Apparatus to Building Fires - - - - - 90th percentile Travel Time for Fire Apparatus to EMS Incidents - - - - - 90th percentile Travel Time for First Arriving Unit at Building Fires - - - - - % of fire calls with a response time of 8 min or less 77.1% 72.4% 91.0% 85.0% 87.0% % of fire calls with a response time of 4 min or less 38.0% 41.0% 41.0% 42.0% 40.0% % of EMS calls with a response time of 4 min or less 45.0% 46.0% 48.0% 48.0% 47.0%
Fleet Average age of police vehicles (months) 43 40 52 56 44 Average age of fire apparatus (months) 57 91 88 81 92 Hours billed as a percentage of hours available n/a 82.9% 82.4% 79.1% 78.3% No. of work orders completed - police vehicles n/a n/a 1,106 1,697 1,736 No. of work orders completed - fire apparatus n/a n/a 164 170 152 Total vehicle and heavy equipment work orders n/a 8,025 8,814 8,025 7,711
Highway and Road Maintenance Number of potholes repaired 22,445 17,848 23,062 14,335 16,943 % lane miles assessed as satisfactory or better 69.9% 88.0% 70.0% 66.0% 64.0% Number of linear miles swept 17,136 16,073 20,319 19,293 18,337 Number of traffic signals repaired or replaced 1,595 1,533
Housing # of homes purchased or constructed 25 6 31 30 2 Number of properties rehabilitated 50 66 58 68 66 Number of families served through housing programs 658 697 978 784 798
Police Police 911 calls received 144,279 119,090 124,138 124,955 133,768 UCR Part I violent crimes reported per 1,000 pop 8.29 8.62 9.43 8.46 9.18 % of UCR Part I violent crimes cleared 39.96% 54.03% 43.72% 56.41% 65.14% UCR Part I property crimes reported per 1,000 pop 41.39 57.77 49.78 47.11 50.71 % of UCR Part I property crimes cleared 16.83% 20.53% 19.00% 23.56% 29.95% Injury-producing traffic accidents per 1,000 pop 7.47 27.33 5.89 5.35 6.03 Traffic fatalities per 1,000 population 0.07 0.03 0.15 0.05 0.06 Moving violation citations issued per 1,000 pop 199.29 168.82 219.08 233.25 176.48 DUI arrests per 1,000 population 2.64 1.58 2.06 2.96 2.75
Purchasing Dollar amount of purchasing card expenditures 2,612,506$ 2,824,290$ 2,731,400$ 4,049,230$ 4,370,367$ Number of purchasing card transactions 16,500 17,442 15,575 17,008 14,919 Average number of days for a formal bid process 44 45 45 45 53
Refuse & Recycling Avg # accounts served per on-route hour 99 150 139 133 133 Tons of refuse collected & disposed 20,266 18,000 20,423 19,720 19,501 Tons yard waste collected & composted 2 9,000 11,280 4,604 8,494 8,481 Tons recycling materials collected n/a 6,000 4,783 4,693 4,692 Complaints per 1,000 accounts 84 137 135 93 67
Utility Residential customers - Electric 77,918 79,125 80,237 82,399 82,668 Commercial & industrial - Electric 9,342 9,538 9,675 10,450 10,461 Customers - Natural Gas 31,704 32,522 33,125 33,777 33,451 Customers - Water 64,692 66,475 67,774 69,784 69,496 Customers - Wastewater 57,553 59,206 60,205 61,552 62,071
Sources: Gainesville Regional Utilities Annual Report; ICMA Center for Performance Measurement
Note: 1 GASB Statement 44 was implemented in fiscal year 2005, in future years, additional years will be reported. 1 As of 2008 the yard trash situation has changed; it all still gets reused, but much of it becomes boiler fuel instead of being composted now.
It depends on the markets for composted materials vs. boiler fuel. 2 In 2011 the Fire department adapted new reporting software for tracking operational indicators using the 90th percentile
The 90th percentile is the performance baseline that indicates that 90% of the performance occurs below the time stated in mm:ss format
Fiscal Year
177
City of Gainesville Operating Indicators by Functional Department
Last Ten Fiscal Years
Fire & EMS 3
Total EMS incidents per 1,000 population served Total Non-EMS incidents per 1,000 population served Total arson incidents per 10,000 population served 90th percentile Turnout Time for Fire Apparatus to EMS Incidents 90th percentile Turnout Time for Fire Apparatus to Building Fires 90th percentile Travel Time for Fire Apparatus to EMS Incidents 90th percentile Travel Time for First Arriving Unit at Building Fires % of fire calls with a response time of 8 min or less % of fire calls with a response time of 4 min or less % of EMS calls with a response time of 4 min or less
Fleet Average age of police vehicles (months) Average age of fire apparatus (months) Hours billed as a percentage of hours available No. of work orders completed - police vehicles No. of work orders completed - fire apparatus Total vehicle and heavy equipment work orders
Highway and Road Maintenance Number of potholes repaired % lane miles assessed as satisfactory or better Number of linear miles swept Number of traffic signals repaired or replaced
Housing # of homes purchased or constructed Number of properties rehabilitated Number of families served through housing programs
Police Police 911 calls received UCR Part I violent crimes reported per 1,000 pop % of UCR Part I violent crimes cleared UCR Part I property crimes reported per 1,000 pop % of UCR Part I property crimes cleared Injury-producing traffic accidents per 1,000 pop Traffic fatalities per 1,000 population Moving violation citations issued per 1,000 pop DUI arrests per 1,000 population
Purchasing Dollar amount of purchasing card expenditures Number of purchasing card transactions Average number of days for a formal bid process
Refuse & Recycling Avg # accounts served per on-route hour Tons of refuse collected & disposed Tons yard waste collected & composted 2
Tons recycling materials collected Complaints per 1,000 accounts
Utility Residential customers - Electric Commercial & industrial - Electric Customers - Natural Gas Customers - Water Customers - Wastewater
Sources: Gainesville Regional Utilities Annual Report; ICMA Center for Performan
Note: 1 GASB Statement 44 was implemented in fiscal year 2005, in future years 1 As of 2008 the yard trash situation has changed; it all still gets reused, bu
It depends on the markets for composted materials vs. boiler fuel. 2 In 2011 the Fire department adapted new reporting software for tracking
The 90th percentile is the performance baseline that indicates that 90% o
2010 2011 2012 2013 2014
27.80 99.60 114.30 118.01 143.92 92.70 27.90 23.15 24.74 17.19
0.54 - 1.13 1.29 1.84 - 1:08 1:18 1:27 1:34 - 1:26 1:27 1:28 1:41 - 7:27 7:04 7:47 6:37 - 6:21 6:20 6:33 6:24
83.0% - - - - 47.0% - - - - 44.0% - - - -
50 46 49 53 49 106 107 79 120 128
79.9% 95.2% 82.7% 80.3% 78.0% 1,822 1,063 1,362 1,220 1,243
279 235 160 174 190 7,327 7,466 8,243 8,175 9,397
16,375 10,940 2,630 2,360 6,094 60.0% 71.5% 73.7% 72.0% 75.0%
14,016 11,998 13,668 14,337 14,337
10 7 26 12 8 49 50 48 40 30
558 314 367 344 210
142,486 136,085 137,943 132,229 121,872 7.11 7.26 7.33 6.37 6.56
66.60% 62.56% 62.22% 64.65% 63.83% 43.05 42.17 42.08 40.88 37.70
29.85% 29.93% 30.42% 31.19% 31.07% 5.67 6.42 6.80 11.21 6.77 0.05 0.05 0.07 0.02 0.08
216.00 215.89 214.18 208.44 198.72 3.06 3.88 2.50 2.93 2.38
4,001,232$ 3,898,638$ 4,167,550$ 4,450,648$ 4,139,136$ 13,815 14,971 14,917 15,191 14,586
53 53 53 53 45
138 138 133 133 139 19,189 18,274 19,856 20,081 20,522 8,099 7,814 8,325 8,576 9,079 5,017 4,890 4,795 4,912 5,043
51 48 50 54 119
82,038 81,900 82,039 82,440 83,117 10,383 10,372 10,422 10,467 10,602 33,202 33,208 33,264 33,465 33,780 68,819 68,952 69,329 69,847 70,300 61,999 62,164 62,536 63,001 63,501
e Measurement
additional years will be reported. much of it becomes boiler fuel instead of being composted now.
perational indicators using the 90th percentile the performance occurs below the time stated in mm:ss format
(concluded)
Fiscal Year
178
City of Gainesville Capital Asset Statistics by Functional Department
Last Ten Fiscal Years
Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fire & EMS Total number of fire apparatus 12 13 13 13 13 13 14 14 14 14 Average age of fire apparatus (in months) 61 91 89 81 92 106 107 79 120 128 Average annual mileage per fire apparatus 9,794 7,673 8,337 8,839 8,998 13,912 8,345 8,561 8,244 7,819 Number of fire stations 7 7 7 7 7 7 8 8 8 8
Fleet Light vehicles: Number 1,279 591 543 549 347 339 616 574 670 877 Number using alternative fuel 5 6 4 4 4 4 40 52 136 172 Average age (in months) 81 92 44 52 67 78 73 73 79 86 Medium-duty vehicles: Number 65 48 36 36 79 82 68 120 122 127 Average age (in months) 81 87 112 87 91 68 72 91 98 101 Heavy-duty vehicles: Number 164 126 48 36 128 107 90 96 46 47 Average age (in months) 53 93 108 101 103 89 103 78 72 88 Heavy equipment: Number 14 12 11 11 22 13 14 18 75 90 Average age (in months) 68 132 142 67 132 67 126 121 172 130
Highway and Road Maintenance Total paved lane miles maintained 1,473 1,473 779 779 764 773 773 777 857 778 Number of traffic signals 4,004 4,049 4,275 4,495 7,994 8,042 8,279 8,279 8,279 8,279
Parks and Recreation Park acres per 1,000 population 20.94 20.77 19.10 19.24 18.90 20.28 21.56 21.64 21.55 21.34 Total park acres 2,511 2,512 2,321 2,395 2,379 2,681 2,681 2,681 2,681 2,681 Recreation/community centers 8 8 8 8 8 8 8 8 8 8 Athletic fields 37 37 37 35 35 35 35 36 36 24 Play structures 78 89 93 112 112 98 98 98 98 96 Tennis courts 23 23 23 23 23 23 23 23 23 23 Basketball courts 24 24 24 23 23 23 23 23 23 23 Swimming pools 3 3 3 3 3 3 3 3 3 3 Miles of bike, walking, and hiking trails 24.7 24.7 24.7 30.6 31.4 37.4 49.8 50.9 50.9 51.0
Police Number of police vehicles - marked 244 244 223 201 268 210 227 232 222 239 Average age of police vehicles (in months) 44 40 52 56 44 50 46 49 53 49 Average annual mileage per police vehicle 11,297 11,000 10,554 6,856 5,311 8,472 9,087 10,783 9,180 9,411
Regional Transit System Number of buses 104 113 107 110 105 105 106 116 123 123 Number of buses using alternative fuel 2 2 2 2 2 3 - - - - Average age of buses (in months) 125 126 125 118 108 82 88 77 89 98
Electricity Combined system net capability (megawatts) 611 611 611 611 611 611 616 610 532 523 Distribution - overhead (circuit miles) 594 595 589 583 580 575 575 568 567 564 Distribution - underground (circuit miles) 753 772 798 814 832 838 849 846 850 852 Distribution substations 9 9 10 10 10 11 11 11 11 11
Natural Gas Distribution mains (miles) 692 713 723 731 739 742 747 752 758 766 Delivery points 5 6 6 6 6 6 5 5 6 6
Water FDEP permitted treatment capacity (mgd) 54 54 54 54 54 54 54 54 54 54 Storage capacity (million gallons) 19.5 19.5 19.5 19.5 19.5 19.5 19.5 18.5 18.5 18.5 Consumptive Use Permit (mgd) 28.5 29.0 29.0 29.0 29.4 29.9 30.0 30.0 30.0 30.0 Distribution mains (miles) 1,034 1,051 1,069 1,095 1,102 1,106 1,115 1,128 1,130 1,139 Supply wells 15 15 16 16 16 16 16 16 16 16
Wastewater Gravity mains (miles) 568 568 568 607 608 612 618 629 630 631 Force mains (miles) 127 127 127 133 137 137 139 139 139 139 Lift stations 154 154 154 165 164 164 164 165 165 165 Treatment capacity (million gallons per day) 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
GRUCom Fiber optic cable (miles) 268 275 301 318 341 351 389 420 449 438 Maximum bandwidth (2.5 gigabits/second) OC-48 OC-48 OC-48 OC-48 OC-48 OC-192 OC-192 OC-192 OC-192 OC-192 On-net locations 302 343 363 436 463 454 524 503 523 555
Sources: Gainesville Regional Utilities Annual Report ICMA Center for Performance Measurement
179
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MANAGEMENT LETTER REQUIRED BY SECTION 10.557, RULES OF THE AUDITOR GENERAL Honorable Mayor and City Commissioners City of Gainesville, Florida We have audited the basic financial statements of the City of Gainesville, Florida (the “City”), as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated March 25, 2015. Our report on the basic financial statements included a reference to the report of other auditors who issued separate communications relative to Gainesville Regional Utilities. Our audit was conducted 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; Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General.
Pursuant to the Rules of the Auditor General, which govern the conduct of governmental audits performed in the State of Florida, we make the following representations:
As required by the Rules of the Auditor General, we determined that the annual financial report for the City, for the fiscal year ended September 30, 2014, was filed with the Department of Financial Services pursuant to Section 218.32, Florida Statutes, and is in substantial agreement with the audit report.
The scope of our audit included a review of the provisions of Section 218.503(1), Florida
Statutes, Determination of Financial Emergency. We determined that the City has not met one or more of the conditions described in that section that are indicative of a state of financial emergency.
As required by the Rules of the Auditor General, we applied financial condition assessment
procedures, as of the end of the fiscal year, pursuant to Rule 10.556(8). It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by management. The application of such procedures did not reveal evidence of “deteriorating financial condition” as that term is defined in Rule 10.554.
The Rules of the Auditor General stipulate that auditors should review the status of prior- audit findings. If the audit findings in the preceding audit report are uncorrected, auditors are required to identify those findings that were also included in the second preceding audit report. In that regard, there are no uncorrected prior audit findings.
Accompanying this letter are our reports on internal control and compliance relative to financial reporting and financial assistance programs. Also, other auditors have issued separate communications relative to Gainesville Regional Utilities. The comments in those documents should be considered in conjunction with this management letter.
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The purpose of this management letter is solely to comply with the requirements of Chapter 10.550, Rules of the Auditor General. Accordingly, this communication is not suitable for any other purpose.
Thank you for the cooperation and courtesies extended to us during the course of our audit. We have sincerely enjoyed our association with the City and look forward to a continuing relationship. Please let us know if you have any questions or comments concerning this letter, our accompanying reports, or other matters.
Gainesville, Florida March 25, 2015
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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES Honorable Mayor and City Commissioners City of Gainesville, Florida We have examined the City of Gainesville’s (the “City”) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2014. Management is responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City’s compliance with the specified requirements. In our opinion, the City complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.
Gainesville, Florida March 25, 2015
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INDEPENDENT AUDITOR’S 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 Honorable Mayor and City Commissioners City of Gainesville, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate discretely presented component unit and remaining fund information of City of Gainesville, Florida (the “City”) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 25, 2015. Other auditors audited the financial statements of the Utility Fund, as described in our report on the City’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.
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 was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Gainesville, Florida March 25, 2015
Federal Grantor/ Program Title Contract/Grant No. Expenditures Program Total Cluster Total
DEPARTMENT OF AGICULTURE FOREST SERVICE Passed Through Florida Department of Agiculture and Consumer Services Tree Inventory Data Collection & Improvements 10.664 991-365 9,588
DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed Through Florida Department of Health Grant to States to Support Oral Health Workforce Activities 93.236 COHC7 54,150 Preventive Health Services Block Grant 93.991 COHC7 2,850
DEPARTMENT OF HOMELAND SECURITY FEMA FY 2012 Assistance to Firefighters Grant Program 97.044 EMW-2012-FO-01449 488,362 FY 2013 Staffing for Adequate Fire and Emergency Response (SAFER) 97.083 EMW-2013-FH-00366 168,938 Passed Through DEM via Florida Department of Financial Services 2011 State Homeland Security Grant Program 97.067 12-DS-20-13-00-16-501 3,822 2012 State Homeland Security Grant Program 97.067 13-DS-97-13-00-16-409 12,414 2004 State Homeland Security Grant Program 97.067 FM164 1,248 Passed Through Alachua County ISAT Phones 97.067 12-DS-20-03-11-01-476 2,250 19,734
EXECUTIVE OFFICE OF THE PRESIDENT-OFFICE OF NATIONAL DRUG POLICY Passed Through St. Johns County Sheriff Office North Florida HIDTA-Highway Interdiction 95.001 G12NF0001A 15,490 North Florida HIDTA-Cadet Initiative-via Alachua County Sheriff Office 95.001 G12NF0001A/G13NF0001A 18,871 North Florida HIDTA-Vehicle Allowance 95.001 G12NF0001A/G13NF0001A 7,031 41,393
ENVIRONMENTAL PROTECTION AGENCY Passed Through Florida Department of Environmental Protection Depot Park Stormwater Treatment Pond - Phase II 66.202 XP-95479012 203,512 Capitalization Grant for State Revolving Funds 66.458 NP49717S 1,411,943
U.S. DEPARTMENT OF EDUCATION Passed Through FL Dept. of Edu. Via School Board of Alachua County 21st Century Community Learning Center Year 4 84.287 010-2444A-4CCC2 73,608
U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT Community Development Block Grant-Entitlement Program 14.218 B-12/13-MC-12-007 1,196,097 Supportive Housing Program-MHS 14.267 FL0110L4H081205 76,404 75,574 Supportive Housing Program-VETSPACE 14.267 FL0112L4H081205 100,073 176,477 99,105 HOME Investment Partnership Grant 14.239 M-12/13/MC-12-0206 653,842
U.S. DEPARTMENT OF JUSTICE Federal Equitable Sharing Proceeds 16.922 N/A 3,026,543 ARRA- OJJDP FY09 Recovery Act Internet Crimes Against Children 16.800 2009-SN-B9-K015 7,345 2012 Internet Crimes Against Children 16.543 2012-MC-FX-K014 376,295 125,884 A Coordinated Community Response to Preventing Violence Against Women 16.590 2007-WE-AX-0054 121,824 90,638 2010 COPS Hiring Program 16.710 2010-UM-WX-0066 367,105 2013 COPS Hiring Program 16.710 2013-UM-WX-0067 70,919 438,024 BPV 16.607 2012 Regular Solicitation 4,550 BPV 16.607 2013 Regular Solicitation 8,286 12,836 Law Enforcement & Technological Enhancement Program 16.738 2011-DJ-BX-2842 7,885 Edward Byrne Memorial Justice Assistance -FY12 16.738 2012-DJ-BX-0810 1,600 Edward Byrne Memorial Justice Assistance -FY13 16.738 2013-DJ-BX-1051 64,723 Passed Through Florida Department of Law Enforcement: Sexual Predator & Offender Tracking 16.738 2013-JAGC-ALAC-3-D7-222 9,920 BOLD 16.738 2013-JAGC-ALAC-4-D7-212 9,673 Passed Through Alachua County Sheriff Department 2013 Problem Oriented Policing 16.738 2013-JAGC-ALAC-7-D7-088 766 2014 Problem Oriented Policing 16.738 2014-JAGC-ALAC-7-D7-088 21,943 116,510 Passed Through The Center for Childrens Law of Policy Racial and Ethic Disparities Project 16.541 2011-JF-FX-0014 25,714
Federal Amount
Provided to Subrecipients
Federal CFDA
NUMBER
Schedule of Federal Awards and State Financial Assistance September 30, 2014
City of Gainesville, FL
185
Federal Grantor/ Program Title Contract/Grant No. Expenditures Program Total Cluster Total
Federal Amount
Provided to Subrecipients
Federal CFDA
NUMBER
Schedule of Federal Awards and State Financial Assistance September 30, 2014
City of Gainesville, FL
U.S. DEPARTMENT OF TRANSPORTATION FY07 Section 5309 Grant-Facility Expansion 20.500 FL-04-0089 25,289 FY11 SGR Facility Expansion 20.500 FL-04-0126 987,221 FY11 Livability Grant 20.500 FL-04-0150 6,881,052 FY12 SGR -RTS Facility 20.500 FL-04-0175 12,521,480 20,415,042 FY08 Urbanized Area Formula Grant 20.507 FL-90-X655 109,180 FY10 Urbanized Area Formula Grant 20.507 FL-90-X737 135,359 FY11 Urbanized Area Formula Grant 20.507 FL-90-X763 160,132 FY12 Urbanized Area Formula Grant 20.507 FL-90-X798 55,337 FY13 Urbanized Area Formula Grant 20.507 FL-90-X824 770,635 FY14 Urbanized Area Formula Grant 20.507 FL-90-X851 1,874,311 3,104,954 23,519,996 Bus Rapid Transit Analysis 20.522 FL-39-0009 255,222 Passed Through Florida Department of Transportation Non-Urbanized Alachua County, Route 20.509 AR915 243,424 5317 Non-Urbanized Alachua County 20.521 AQP25 49,389 5317 Op.-Assistance 20.521 ARB02 9,775 5317 Capital Assistance 20.521 ARB03 49,659 108,823 LAPA/ Bike Path/Trail W. 6th Street 20.205 211363-2-58-01 / AQ849 642,844 Passed Through Florida Department of Environmental Protection Recreational Trails Program 20.219 T1223/RTP T12023 179,107 821,951 GPD Comprehensive Traffic Enforcement & Education Project 20.600 PT-14-12-13/ARD10 83,199 Passed Through NHTSA via Western Michigan University GPD Aggressive Driving Project 20.614 DTNH22-06-00036 8,059
TOTAL EXPENDITURES OF FEDERAL AWARDS 33,666,258 391,201
186
Schedule of Federal Awards and State Financial Assistance September 30, 2014
City of Gainesville, FL
State Grantor/ Program Title State CSFA NUMBER
Contract/Grant No. Expenditures Program
Total
FLORIDA FISH AND WILDLIFE CONSERVATION COMMISSION
Aquatic Habitat Restoration and Enhancement Sub-Section 77.016 FWC12096 167,690
FLORIDA HOUSING FINANCE CORPORATION
SHIP 2011/2012 52.901 N/A 177,914
SHIP 2012/2013 52.901 N/A 29,540
SHIP 2013/2014 52.901 N/A 38,817 246,271
DEPARTMENT OF EMERGENCY MANAGEMENT Hurricane Shelter Retrofit Senior Center 31.068 14-SR-94-03-11-02-492 5,881
DEPARTMENT OF ENVIRONMENTAL PROTECTION Paynes Prairie Sheetflow Restoration Phase I 37.039 G0312/C9-99451510-0 500,000
Gainesville Depot Park Stormwater Treatment 37.039 LP6027 31,417 531,417
DEPARTMENT OF HEALTH Pass through Alachua County EMS 2007-2008 EMS- Pass through from County 64.005 C7001 439 EMS 2008-2009 EMS- Pass through from County 64.005 C8001 10,074 EMS- Pass through from County 64.005 C0001 1,430 11,943 DEPARTMENT OF STATE Division of Cultural Affairs General Program Support 45.061 14.6.500.296 34,100
DEPARTMENT OF TRANSPORTATION County Incentive Grant Program 55.008 100,084 FY 13/14 Block Grant 55.010 AR894 1,747,550 FY11-13 Service Development Funds- Route 46, Yrs. 1 & 2 55.012 AQC93: #1 & 2 121,921 FY12-14 Service Development Funds - Route 76 Yrs. 1 & 2 55.012 AQT70: #1 & 2 57,276 FY12/13 Service Development Funds - Route 28, Yr. 2 55.012 AQC92: #2 51,748 FY12/13 Service Development Funds - Route 62, Yr. 2 55.012 AQD46: #2 45,770 FY13/14 Service Development Funds - Route 41 55.012 ARA52 57,537 FY13/14 Service Development Funds - Route 77 55.012 ARA53 12,701 FY13/14 Service Development Funds - Route 2 & 24 55.012 ARA56 60,000 FY13/14 Service Development Funds - Route 39 55.012 ARA64 27,592 FY12-14 Bus Pass Program Yr. 1 & 2 55.012 AQT98: #1 & 2 7,991 FY10/11 Bus Stop Amenities 55.012, 55.007 AQ757 51,657 494,193 FY11/12 Bus Stop Amenities 55.013 AQE90 1,571 Comprehensive Operational Analysis 55.030 AQA46 108,560
Transportation Regional Incentive Program 55.026 423306-1-58-01 & 423306-3-58-01 1,049,817
TOTAL EXPENDITURES OF STATE AWARDS 4,499,076
187
Note 1. Basis of Presentation
Note 2. Sub recipients
Federal CFDA Program Title Number Amount Supportive Housing Programs 14.267 174,679$
Sub recipients: Meridian Health Services VETSPACE
A Coordinated Community Response to Preventing Violence Against Women 14.235 90,638$
Sub recipients: Alachua County Board of Commissioners Black on Black Crime Task Force
2009/2012 Internet Crimes Against Children 16.543 125,884$ Sub recipients:
Brevard County Sheriff's Office Clay County Sheriff's Office Daytona Beach Police Department Florida Department of Law Enforcement Jacksonville Sheriff's Office Marion County Sheriff's Office Pensacola Police Department St Johns County Sherriff's Office Tallahassee Police Department TF Affiliates Crestview Police Department Escambia County Sheriffs Office Volusia County Sheriff's Office Walton County Sheriff's Office 14th Judicial Circuit- Panama City & Bay County 17th Judicial Circuit-Flagler, Putnam, St. Johns , & Volusia County
Notes to the Schedule of Federal Awards and State Financial Assistance For the Fiscal Year Ended September 30, 2014
City of Gainesville, Florida
The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal and state grant activity of the City of Gainesville, Florida and is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organization and the Florida Single Audit Act. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
The City provided federal awards to sub recipients as follows:
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL Honorable Mayor and City Commissioners City of Gainesville, Florida
Report on Compliance for Each Major Federal Program and Each State Project
We have audited the City of Gainesville, Florida’s (the “City”) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement and the Department of Financial Services’ 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, 2014. The City’s major federal program and state projects are identified in the summary of auditor’s 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 programs and state projects.
Auditor’s 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; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major 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 the major federal program and each major state project. However, our audit does not provide a legal determination of the City’s compliance.
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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 its major federal program and each of its major state projects for the year ended September 30, 2014.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program and state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with OMB Circular A-133 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 City’s 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 federal program or 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 OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not suitable for any other purpose.
Schedule of Expenditures of Federal Awards and State Financial Assistance
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate discretely presented component unit and remaining fund information of the City as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 25, 2015, which contained unmodified opinions on those financial statements. Our report on the basic financial statements included a reference to the report of other auditors. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards and state
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financial assistance is presented for purposes of additional analysis as required by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates 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 by us and the other auditors 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, based on our audit and the report of other auditors, the schedule of expenditures of federal awards and state financial assistance is fairly stated in all material respects in relation to the basic financial statements as a whole.
Gainesville, Florida March 25, 2015
Schedule of Findings and Questioned Costs For the Fiscal Year Ended September 30, 2014
City of Gainesville, Florida
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Part I – Summary of Auditor’s Results 1. The auditor's report on the basic financial statements was unmodified.
2. The audit did not report significant deficiencies or disclose material weaknesses in internal control over financial reporting.
3. No instances of noncompliance considered material to the financial statements were disclosed by the audit.
4. The audit did not report significant deficiencies or disclose material weaknesses in internal control over the major federal program and major state projects.
5. The auditor’s report on compliance for the major federal program and major state projects was unmodified.
6. The audit did not disclose findings relative to the major federal program and major state projects.
7. The City's major programs/projects were: Federal Program CFDA No. Federal Transit Cluster 20.500 & 20.507 State Projects CSFA No. County Incentive Grant Program 55.008 Public Transit Block Grant Program 55.010 Public Transit Service Development Program 55.012 8. A threshold of $1,009,988 was used to distinguish between Type A and Type B programs for
federal programs and $300,000 was used for state projects.
9. The City qualified as a low-risk auditee as that term is defined in OMB Circular A-133. Part II – Financial Statement Findings No matters are reportable. Part III – Findings and Questioned Costs – Federal Programs
No matters are reportable. Part IV – Findings and Questioned Costs – State Programs
No matters are reportable.
CITYOF /
GAINE ~LLE every path 1th n
FLORIDA
Schedule of and Response to Prior Year Audit Findings
Budget and Accounting PO Box 490 •Station 14
Gainesville, FL 32627-0490 352-334-5034
352-334-2263 (Fax) www.cityofgainesville.org
We are pleased to report that in connection with our September 30, 2013 financial statement audit and single audit, our external auditors listed no findings. Therefore, there was no plan required for corrective action and no discussion of current status is necessary.
Response to Current Year Audit Findings and Corrective Action Plan
We are pleased to report that in connection with our September 30, 2014 financial statement audit and single audit, our external auditors listed no findings. Therefore, there is currently no plan required for corrective action.
We would like to take this opportunity to thank Carr, Riggs & Ingram for their professional and thorough audit. It is a pleasure to work with their partners and staff.
OUR VISION: The City of Gainesville w111 set the standard of excellence for a top ten mid-sized American city; recognized nationally as an innovative proVJder of high-quality, cost-effective services.
Purvis Gray&..
___________________ C_oIDQany 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 and City Commissioners Gainesville, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Gainesville Regional Utilities (the Utility) of the City of Gainesville, Florida (the City), as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Utility's basic financial statements and have issued our report thereon dated February 17, 2015.
Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Utility'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 Utility's internal control. Accordingly, we do not express an opinion on the effectiveness of the Utility'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 Utility'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 was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Certified Public Accountants P.O. Box 141270 • 222 N.E. 1st Street • Gainesville, Florida 32614-1270 • (352) 378-2461 •FAX (352) 378-2505
Laurel Ridge Professional Center • 2347 S.E. 17th Street • Ocala, Florida 34471 • (352) 732-3872 • FAX (352) 732-0542 443 East College Avenue • Tallahassee, Florida 32301 • (850) 224-7144 • FAX (850) 224-1762
5001 Lakewood Ranch Blvd. N., Suite 101 • Sarasota, Florida 34240 • (941) 907-0350 • FAX (941) 907-03 09 MEMBERS O F AMERICAN AND FLORIDA INSTITUTES OF CERTIFIED PUBLIC ACCOUNTANTS
MCMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES AND S.E.C. PRACTICE SECTIONS
To the Honorable Mayor and City Commissioners Gainesville, Florida
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
(Concluded)
Compliance and Other Matters As part of obtaining reasonable assurance about whether the Utility's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing , and not to provide an opin ion on the effectiveness of the Utility'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 Utility's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
~.~~~,uf' February 17, 2015 Gainesville, Florida
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