Fort Walton Beach Council agenda — 03-19-12--special--audit — reading text

has been delayed due to the decision to bring engineering work in house. We anticipate completion of these plans in FY2013. During FY2011 the City determined the thirty inch pre -stressed concrete cylinder pressure PCCP) force main would need to be replaced during FY2013. In FY2012, $ 966,758 was expended on design work, permitting, and bid issuance to replace the force main and for related pump station upgrades. The projected total cost for these projects is $ 16,000,000 which will be funded with a State Revolving Fund (SRF) loan from the Florida Department of Environmental Protection ( FDEP), available proceeds from the 2005 Utility Improvement Bond, and cost sharing with Okaloosa County for the common portion of the force main. In 2011, the City began the next phase of streetscape and pedestrian crosswalk improvements in the downtown area. To date $ 18, 550 has been spent. These projects are funded by the Fort Walton Beach Community Redevelopment Agency ( CRA) and the anticipated date of completion is dependent upon the Department of Transportation' s DOT) approval of the plans. In 2012, the City began construction on a new parking lot for the downtown area. To date 317,286 has been spent and completion is expected in early FY2013. The total cost is projected to be $ 330, 000 and is funded by the CRA. In FY2011 the City began a project to extend the boat ramp at Liza Jackson Park. A Florida Boating Improvement Program ( FBIP) Grant in the amount of $ 18.000 was awarded by the Florida Fish and Wildlife Conservation Commission ( FWC) and additional grant funding is being applied for as the total cost is estimated to be $60. 000. To date $ 121 has been spent on the permitting process The City is continuing the expansion of the water reuse line. " this project began in 2001 as a partnership between Fludburt Field and the City to install over 30,000 linear feet of re- use water main. Initial funding received from the Florida Defense Infrastructure Grant FDIG) program provided for the installation of approximately 11, 500 linear feet. In 2012 the City awarded a bid to install an additional 17, 500 linear feet of reuse water line. The City expended $ 324,690 in FY12 installing approximately 5000 linear feet of reuse piping and the project is expected to be complete in FY2013. To date the City has spent 1, 564, 579 and the total cost is estimated to be $ 2, 170.918. The current portion of the project was funded with $500, 000 in FDIG funds and Utility Fund net assets. 51 Pick P. 77.  3. t. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 5 - CHANGES IN CAPITAL ASSETS (CONTINUED) Construction Commitments ( Continued) In FY12, the City began a project to consolidate four recreation centers into a new recreation facility. During 2012, 35% drawings were completed at a cost of $123, 980. In early FY13, an architect was selected and the project approved by City Council. The estimated cost of the facility is $ 8. 1 million dollars. The City intends to obtain funding for this project by applying for grants, obtaining private sponsors, evaluating current City properties for lease or sale opportunities, and issuing debt. NOTE 6 - CHANGE IN ESTIMATE OF USEFUL LIVES During the year ended September 30. 2012, the City determined that the City' s Pmnp Station 41 would need to be replaced due to the planned installation of a new Force Main and the interconnect with Okaloosa County for waste water treatment. The Pump Station was upgraded in 2001 with an average expected life of twenty five years. The City determined the Pump Station had a revised average life of thirteen years and a remaining life of eight months as of September 30, 2012. The change in the estimated life of the Pump Station resulted in an impairment loss of $588,652 for the year ending September 30, 2012. NOTE 7 - DEFINED BENEFIT PENSION PLANS The City of Fort Walton Beach, Florida sponsors three single -employer defined benefit pension plans: the General Employees' Retirement Fund ( GERF). Police Officers' Retirement Fund ( PORF) and the Firefighters' Retirement Fund ( FRF). These plans provide benefits for all qualifying employees of the City. The financial activity of each plan is reported as a Pension Trust Fund in the City of Fort Walton Beach, Florida' s internal combined financial statements and can also be found in Section E of this note. There is no separate report available for the individual pension plans. A. Basis of Accounting and Method Used to Value Investments Each plan's financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to the plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. 52 PaekefPg 78;  3. t. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 7 - DEFINED BENEFIT PENSION PLANS (CONTINUED) A. Basis of Accounting and Method Used to Value Investments ( Continued) Administrative costs are financed from each respective fund's investment earnings. B. Plan Descriptions Membership of each plan consisted of the following as of the date of the latest actuarial valuation: 2) PORT 3) FRF I1) GFRF ( 130 37 24 Retirees and beneficiaries receiving benefits Terminated plan members entitled to but not yet 9 12 receiving benefits 6 6 Disabled participants 44 35 138 Active plan members 286 96 59 Total 1) Ltcsi actuarial valuation 10 1, 2011 2) Latest actuarial valuatiuu 10, 12012 3) Latust actuarial valuation 10/ V2012 General Employees' Retirement Fund ( GERF) - Plan Description Plan Description - The GERF provides retirement, disability, and death benefits to plan members and beneficiaries. Participation in the plan is mandatory for all full - time general municipal employees hired after May 14. 1996 through December 31. 2009. Employees hired after this date are not eligible to participate. Cost -of-living increases of up to 3% are provided to retirees and beneficiaries every year. City ordinance assigns the authority to establish and amend benefit provisions to the City. Police Officers' Retirement Fund (PORF) - Plan Description Plan Description - The PORT is administered by the Police Officers' Pension Fund Board of Trustees. rile PORE provides retirement, disability, and death benefits to plan members and beneficiaries. Participation in the plan is mandatory for all certified police officers. Cost -of-living increases of up to 3% are provided to retirees and beneficiaries every year. City ordinance assigns the authority to establish and amend benefit provisions to the Board of Trustees, with final approval resting with City Council. 53  3. t. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 7 - DEFINED BENEFIT PENSION PLANS (CONTINUED) B. Plan Descriptions ( Continued) Firefiehters I Retirement F,, d ( FRF) - Plan Description Plan Description - The FRF is administered by the Firefighters' Pension Fund Board of Trustees. The FRF provides retirement, disability, and death benefits to plan members and beneficiaries. Participation in the plan is mandatory for all firefighters. Cost -of-living increases of up to 3% are provided to retirees and beneficiaries every year. City ordinance assigns the authority to establish and amend benefit provisions to the Board of Tmstees, with final approval resting with City Council. C. Contributions, Funding Policy and Annual Pension Cost The contribution requirements of plan members and the City are established annually and amended by City ordinance. Plan members are required to contribute at a set percentage of their annual covered salaries. The City is required to contribute at an actuarially determined rate. The State of Florida also contributes to the Police officers' Retirement Fund ( PORT) and the Firefighters' Retirement Fund ( FRF). Contributions from the State for the PORT of $168,042 and $ 193, 034 for the FRF are included in the governmental activities revenue and expenses for the year ending September 30, 2012. None of the three Plans addresses maximum contribution rates. 54 PackefP#. 80  31. City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 7 - DEFINED BENEFIT PENSION PLANS ( CONTINUED) C. Contributions, Funding Policy and Annual Pension Cost (Continued) The City' s annual pension cost as of the most recent actuarial date and related information for each plan is as follows: GERF PORT Contribution rates ( percentage of