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

18909 $ 512, 060 Commonit, Redevdopmeut Agen,, 71. 981 71. 981 Vonmajorgovcromental 44343 44,343 Utilities 1. 177. 785 1. 177. 785 Sanitation 426. 577 37.363 461940 Golf 53. 432 53. 432 Nonmajor pmprteary 1Z 147 17. 147 1. 791791 2-65265 - SS 493.493. 151151 3736337363 SS 18,18, 909909 2.2. 340,340, 688688 7272  F3 1.. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 17 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS CONTINUED) The transfers out of the General Fund of $512, 060 consist of 1) $ 455, 333 transfer to the Debt Service Fund ( nonmajor governmental fund) for principal and interest payments on debt, 2) $ 37, 818 transfer to the Beal Cemetery Perpetual Care Fund for lot sales, and 3) 18, 909 transfer to the Golf Fund ( major proprietary fund) for salary enhancement costs based on a City policy. Transfers in to the General Fund of $1, 791, 265 consist of 1) $ 21, 486 transfer from the Beal Cemetery Perpetual Care Fund ( nonmajor governmental fund) to cover improvements made to the Beal Memorial Cemetery. 2) $ 22, 857 transfer from the Community Development Block Grant Fund to cover administrative costs, 3) $ 301, 024 from the Utility Fund to cover 4% franchise " right of way access fee ", and 4) $ 130, 000 from the Sanitation Fund to cover the wear and tear on roadways due to sanitation trucks. The remaining transfers, not previously mentioned, were made to cover shared expenses per the City's cost allocation plan, and to transfer the dental self -insurance program refunds received due to the discontinuance of the program. 73 a.Packet Pg. 99  3. I. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE IS - GOVERNMENTAL FUND BALANCES At September 30. 2012, the City' s governmental fund balances were classified as follows Comm mtv Other Total Redevelopment Govemmenlal Governmental General Fund Agency Funds Funds N'onspeadable Inventory 197. 278 197. 278 Advances 1660. 685 1, 660. 685 Total oonspendable 2857 963 1, 857 963 Restricted for Improccmcnt districts 3936. 100 3. 736. 100 Library 191068 193. 068 Low enforcement 262. 648 261648 Debt service 111507 113. 507 Other purposes 1. 125 1. 125 Coal restr a d 194. 193 3, 736, 100 376. 155 4_306448 Committed Canute.. malnuumacc 1 959. 836 1. 959. 836 Natural disaster recover 5, 040, 585 5. 040. 585 1 oral committed 5040585 1, 959, 936 7. 000, 421 Assigned Assigned toto PublicPublic safety'safety' 35,35, 550550 35550 Culture and recreation GcncralGcncral gawrnmentgawrnment Capital Po' ects 174.174. 824824 174. 824 self-insurance dental program refund 80. 100 W100 C itiirn police academe 3.3. 020020 3.3. 020020 MeeMee StreetStreet 5,5, 504504 5504 Other 853 853 FY 2013 budget appropriation 55, 148 s5 -148 AssignedAssigned 354.354. 999999 354. 999 Unassigned 1611. 12( 1 302)302) 1. 610.610. 818818 TOTALTOTAL FUNDFUND BALANCF BALANCF S 10. 058. 860 3. 736, 100 $ 2, 335, 689 S 16. 130. 649 74  3. 1. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 19- ENCUMBRANCES The amount of encumbrances outstanding as of September 30, 2012, is as follows Governmental Funds - General Fund 35, 550 Community Redevelopment Agency 284. 841 I otal S 320391 Encumbrances at year end do not constitute expenditures or liabilities; therefore, they are not reflected in the financial statements. NOTE 20 - COMMITMENTS AND CONTINGENCIES Grants Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal govertunent. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount. if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the City expects such amount, if any, to be immaterial. Soundside Apartments Planned Unit Development In June 2010, the City entered into a Memorandum of Understanding with the City of Fort Walton Beach Community Redevelopment Agency, the Fort Walton Beach Housing Authority, and Soundside Apartments, LTC for the Soundside Apartments planned unit development ( PUD). According to the Memorandum, Germany Terrace, a 50 -unit public housing development. will be redeveloped into a 200 -unit affordable housing complex. The City also entered into a related Interlocal Agreement whereby the City approved the use of of up to $ 700, 000 in Community Redevelopment Agency Special Revenue Trust Funds for site demolition. infrastructure improvements, site restoration and other costs for the project. The total amount will be assessed to, and eventually repaid by the property owner, Soundside LLC to the City, at no more than $ 52, 142 per year at 1. 5 % interest, and shall become payable no sooner than 3 years after the closing date, payable over a 30 -year period. This Soundside special assessment is included in the Community Redevelopment Agency ( component unit). The special assessment receivable at September 30, 2012 was 147, 840. 75 kaeket P'' A1  3. 1. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 20 - COMMITMENTS AND CONTINGENCIES ( CONTINUED) Wastewater Service / nterlocal Agreement with Okaloosa County On August 11, 2009, the City adopted the Wastewater Service Interlocal Agreement with Okaloosa County ( Agreement). The Agreement outlines a long -term association with Okaloosa County Water & Sewer for the treatment of the City 's influent wastewater flow at a set percentage of the County's base sewer rate plus a locked -in annual rate escalator. The agreement provides other ancillary benefits to the CAN such as the provision of "no cost" tertiary treated effluent for use as irrigation water at the City's 36 -hole municipal Golf Club. The Agreement is effective for 30 years and can be automatically extended for up to two additional terns for a period of ten years for each extension term. On a monthly basis, the County will bill the City at a rate equal to $ 2. 46 per each 1, 000 gallons of wastewater flow. Additionally, the City will pay to the County the Sewer Readiness to Serve Fee, which is equal to $ 3, 750 per month. Beginning March 2011, and each year thereafter, the Readiness to Serve Fee will increase by 3 %, annually. The minimum commitment by the City under the Agreement is as follows: Fiscal Year Ending Senternber 30 2013 48, 576 2014 50, 033 2015