FL - Haines City: CITY COMMISSION WORKSHOP

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CITY COMMISSION WORKSHOP

City Commission Workshop April 19, 2018 Page 1 of 1

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CITY OF HAINES CITY, FLORIDA CITY COMMISSION WORKSHOP

6:00 PM Mayor H.L. Roy Tyler
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Vice-Mayor Morris West Commissioner Horace West

Commissioner Don Mason Commissioner Anne Huffman COMMISSION CHAMBERS
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620 E. Main Street, Haines City, FL 33844

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Phone: 863-421-9921 Web: hainescity.com

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1.
CALL TO ORDER

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2.
PRESENTATIONS AND DISCUSSIONS

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2.A. COMPREHENSIVE ANNUAL FINANCIAL REPORT

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Staff Contact: Shantavia Conner, Finance Director

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3.
AGENDA REVIEW

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4.
ADJOURNMENT

Website Address hainescity.com NOTICE Pursuant to Section 286.0105 of the Florida Statutes, if any person decides to appeal any decision made by the City Commission with respect to any matter considered at this public meeting, such person will need a record of the proceedings and for such purpose, such person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which the appeal is to be based. For special accommodations, please notify the City Clerk s Office at least 72 hours in advance.

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Phone: 863-421-9921

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Help for the hearing impaired is available through the

Assistive Listening System. Receivers can be obtained from the City Clerk s Office. In accordance with the Americans with Disabilities Act (ADA), persons with a disability, such as a vision, hearing or speech impairment, or persons needing other types of assistance, and who wish to attend City Commission meetings or any other board or committee meeting may contact the City Clerk s Office in writing, or may call 863-421-9921 for information regarding available aids and services. CITY MANAGER MEMORANDUM
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To: The Honorable Mayor and City Commissioners

Through: Deric C. Feacher, City Manager
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From: Shantavia Conner, Finance Director

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Date: April 19, 2018

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Subject: Comprehensive Annual Financial Report

Introduction
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Presentation of the City of Haines City Comprehensive Annual Financial Report for the year

ended September 30, 2017. Background State statute requires the City prepare annual financial statements and those financial statements be audited by a Certified Public Accounting firm licensed in the State of Florida. City Staff has prepared the Comprehensive Annual Financial Report (CAFR) and the independent audit firm of Mauldin and Jenkins has performed the necessary audit.
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Once again, the City has received a clean opinion. This signifies the financial statements present

fairly, in all material respects, the financial condition of the City as of September 30, 2017. For the fiscal year that ended September 30, 2016, the City received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association
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(GFOA). The City has received this award for the past nine (9) years and staff is confident it will

be ten (10). City Staff will give an overview of the City's financial condition as of September 30, 2017. Also present will be staff members of the auditing firm, Mauldin and Jenkins, to present their audit findings and answer any questions posed. Organizational Goal
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Financial: Develop and maintain fiscal policies based on program and performance measures

while engaging community involvement. Budget Impact 2.A Packet Pg. 2 Page 2 of 2 There is no budget impact as a result of this request. Recommendation

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Presentation of the City of Haines City Comprehensive Annual Financial Report for the year

ended September 30, 2017. Attachments: a) 2017 Haines City (PDF) 2.A Packet Pg. 3 HCFORW RD one city. one vision.
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CITY OF HAINES CITY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR END SEPTEMBER 30, 2017 2.A.a Packet Pg. 4 A tta ch m en t:
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CITY OF HAINES CITY, FLORIDA

COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30, 2017
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Prepared by: Department of Finance

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CITY OF HAINES CITY, FLORIDA

Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2017
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TABLE OF CONTENTS

Page INTRODUCTORY SECTION

Letter of Transmittal i Organization Chart vi Principal City Officials vii Certificate of Achievement for Excellence in Financial Reporting viii

FINANCIAL SECTION Independent Auditor s Report 1 Management s Discussion and Analysis 4
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Basic Financial Statements

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Government-wide Financial Statements

Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Balance Sheet Governmental Funds 17 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 18 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds 19 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 Statement of Net Position Proprietary Funds 21 Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds 23 Statement of Cash Flows Proprietary Funds 24 Statement of Fiduciary Net Position Fiduciary Funds 26 Statement of Changes in Fiduciary Net Position Pension Trust Funds 27 Notes to Financial Statements 28 2.A.a Packet Pg. 7 A tta ch m en t:
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ua l F ina nc ial R ep or t) Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund 61 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual CRA Fund 62 Schedule of Changes in Net Pension Liability and Related Ratios General Employees Pension 63 Schedule of Contributions General Employees Pension 64 Schedules of Pension Investment Returns 65 Schedule of Changes in Net Pension Liability and Related Ratios Police Officers Pension 66 Schedule of Contributions Police Officers Pension 67 Schedule of Changes in Net Pension Liability and Related Ratios Fire Fighters Pension 68 Schedule of Contributions Fire Fighters Pension 69 Schedule of Funding Progress Other Post-Employment Benefits 70

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Other Supplementary Information

Statement of Changes in Assets and Liabilities Right of Way Agency Fund 71

STATISTICAL SECTION Net Position by Component 72 Changes in Net Position 73 Fund Balances, Governmental Funds 75 Changes in Fund Balances, Governmental Funds 76 Assessed Value and Estimated Actual Value of Taxable Property 77 Direct and Overlapping Property Tax Rates 78 Principal Taxpayers 79 Property Tax Levies and Collections 80 Ratios of Outstanding Debt by Type 81 Ratios of General Bonded Debt Outstanding 82 Direct and Overlapping Governmental Activities Debt 83 Legal Debt Margin Information 84 Pledged-Revenue Coverage 85 Demographic and Economic Statistics 86 Principal Employers 87 Full-time Equivalent City Government Employees by Function/Program 88 Operating Indicators by Function/Program 89 Capital Asset Statistics by Function/Program 90 2.A.a Packet Pg. 8 A tta ch m en t:
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ua l F ina nc ial R ep or t) COMPLIANCE SECTION 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 91 Independent Auditor s Report on Compliance for each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance 93 Schedule of Expenditures of Federal Awards 95 Schedule of Findings and Questioned Costs 96 Independent Auditor's Management Letter 98 Independent Accountant s Report Investment Compliance 100 2.A.a Packet Pg. 9 A tta ch m en t:

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ua l F ina nc ial R ep or t) INTRODUCTORY SECTION This section contains the following subsections:

Letter of Transmittal Organizational Chart Principal City Officials Certificate of Achievement for Excellence in Financial Reporting

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ua l F ina nc ial R ep or t) Our Mission Our team of professionals will provide our residents and business community with the highest quality services in a fiscally responsible manner through cooperation, strong ethical leadership with a lifelong commitment to enriching lives. To the Honorable Mayor, City Commissioners and Citizens of the City of Haines City, Florida: State law requires all local governments publish each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP), and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the City of Haines City for the fiscal year ended September 30, 2017. The report consists of management s representation concerning the finances of the City of Haines City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Haines City has established a comprehensive internal control framework designed both to protect the City s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City of Haines City s financial statements in conformity with GAAP. Furthermore, the cost of internal controls should not outweigh its benefits, the City of Haines City s comprehensive framework of internal controls has been designed to provide reasonable - rather than absolute - assurance the financial statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, the financial report is complete and reliable in all material respects. The City of Haines City s financial statements have been audited by Mauldin Jenkins, L.L.C., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance the basic financial statements of the City of Haines City for the fiscal year ended September 30, 2017, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amount 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 of Haines City s financial statements for the fiscal year ended September 30, 2017, are fairly presented in conformity with GAAP. The independent auditors report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City of Haines City was part of a broader, federal and state mandated Single Audit designed to meet the special needs of the federal 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 City s internal controls and compliance with legal requirements, with special emphasis on the administration of federal awards. 2.A.a Packet Pg. 13 A tta ch m en t:

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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management s Discussion and Analysis (MD A). This letter of transmittal is designed to complement the MD A and should be read in conjunction with it. The City of Haines City s MD A can be found immediately following the independent auditors report.

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Profile of the City

The City of Haines City, Florida, is a municipal corporation of the State of Florida and was incorporated in 1914. The City is located in Central Florida, some 40 miles west of Orlando and 60 miles east of Tampa. Because of this central location, Haines City is referred to as the Heart of Florida . The current permanent population is 23,847. The jurisdiction of the City encompasses 20.56 square miles of territory. The City is empowered to levy a property tax on real estate and personal properties located within its boundaries. It is empowered by state statute to extend its corporate limits by annexation, which occurs when deemed appropriate by the City Commission. The City of Haines City operates under the Commission-Manager form of government. Policy direction and legislative authority are vested in a governing Commission consisting of five members. The City Commission is responsible for, among other things, enacting Ordinances, Resolutions and regulations governing the City, as well as appointing members of various boards, the City Manager, the City Clerk, and the City Attorney. The City Manager is responsible for implementing the policies adopted by the City Commission and for overseeing the day-to-day operations of the government. The City Manager is also charged with the hiring of department directors and with preparing a balanced recommended annual budget for the review and approval by the City Commission. The City of Haines City provides a full range of services to its citizenry. These services include general government, police and fire protection, public works (including solid waste service), recreation and parks, library, economic and community development, and emergency management. In addition, the City operates the Water and Wastewater Utility and Stormwater Utility as enterprise activities and the Haines City Community Redevelopment Agency (CRA) as a Special Revenue Fund. The financial reporting entity (the City of Haines City) includes all funds of the primary government (i.e., the City of Haines City as legally defined), as well as, all of its component units. Component units are legally separate entities for which the City of Haines City is financially accountable or the nature and significance of the relationship between the City and the entity was such that exclusion would cause the City s financial statements to be misleading or incomplete. The City has identified one component unit. The Community Redevelopment Agency (CRA) is reported as a blended component unit of the City and its governing body is composed of the members of the City Commission and two citizens or business owners appointed by the City Commission. Additional information can be found in (Note 1) of the notes to the basic financial statements. The annual budget serves as a foundation for the City of Haines City s financial planning and control systems. All departments of the City are required to submit requests for appropriations to the City Manager and these requests are the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the City Commission for review. The City Commission holds two (2) public hearings on the proposed budget prior to adopting the final budget and setting the tax rates for 2.A.a Packet Pg. 14 A tta ch m en t:
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ua l F ina nc ial R ep or t) iii the budget year. Budgetary control over expenditures is legally maintained at the fund level. Therefore, management must have the City Commission s approval to reallocate resources into or out of the fund. The budget to actual comparison for the General Fund is included as required supplementary information following the notes to the basic financial statements. Factors Affecting Financial Condition The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment with which the City of Haines City operates.

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Local Economy: The City is comprised of extensive residential housing stock with prices covering a broad range. Commercial projects continue to slowly develop in the area surrounding the local hospital in the northwest section of the City, as well as industrial projects in the City s southern industrial park and along the Highway 27 corridor.

The economic condition of the area has been improving in the last couple of years. Property values had declined by forty percent (40 ) through the year ended September 30, 2013, but has since recovered by increasing over thirty percent (30 ) through the year ended September 30, 2017. The unemployment rate continues to drop. It has declined from a high of 13.3 in 2010 to the current rate of 4.6 last year and this year. New housing starts increased over the previous year. The City issued 1,891 building permits for the fiscal year ended September 30, 2017, compared to 1,431 for fiscal year ended September 30, 2016. This is much higher than the 865 issued in the fiscal year ended September 30, 2012. The City will continue to work in unison to be good stewards of the financial resources collected from our residents to ensure we manage the financial resources we have judiciously for future generations. The City is optimistic with the economic growth occurring in the community, but understand there is still work to be done and we have a long way to go. Relevant Financial Practices: The City incorporates fiscal practices within each budgetary cycle, on a fiscal year basis. These include budgetary practices, and financial practices. The fiscal practices encompass the City s budgetary cycle from preparation to adoption. The process for amending the budget, the outline of legal level of budgetary control, as well as the use of revenues and appropriations are addressed. The practices speak to the use of funds from non-recurring revenue sources, the percentage makeup of Ad Valorem, or Property Taxes, of the total General Fund revenues, and process to apply for and subsequently accept grants staff may want to acquire.
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In addition to these budgetary related issues, the fiscal practices also address long-range financial planning strategies, accounting and reporting practices, and establish the capitalization thresholds and capital expenditure limits. These practices allow for the administration of investments and procurements through other external policies, for which the City also maintains separate external policies.

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Major Initiatives: During Fiscal Year 2017, the City of Haines City achieved many significant accomplishments in furtherance of the goals and objectives established by the City Commission.

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ua l F ina nc ial R ep or t) iv The accomplishments include the following: The City continues to make improvements at the existing water and wastewater treatment facilities. Also, a new 20 inch water line and anionic ion exchange process is being designed to improve water quality, as well as system pressure within the water distribution system. The anionic ion exchange project is funded by a Florida Department of Environmental Protection State Revolving Fund (SRF) loan. It is near completion. A new aerial fire truck and many new police cars were purchased during the year as we continue to equip our firefighters and police officers with adequate supplies.

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Achievement of the Government Finance Officers Association s (GFOA) Distinguished Budget Presentation Award for the second year in a row.

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compression study was done increasing employee wages in line with competing local

governments. Fiscal Year 2017 encompassed a lot of change for the City, but the future will unfold even more rigorous accomplishments for the City, its employees, and its citizens. Awards and Acknowledgements The City of Haines City received the Government Finance Officers Association s (GFOA) Certificate of Achievement for Excellence in Financial Reporting award for the eighth consecutive year for the City s Comprehensive Annual Financial Report for the fiscal year ended September 30, 2016. The City also received its second Government Finance Officers Association s (GFOA) Distinguished Budget Presentation Award in a row. These Certificates of Achievement are the highest form of recognition for excellence in state and local government financial reporting and budgeting.
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In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.

The City considers these awards not merely to be accolades hung on a wall, but yearly goals to hit and surpass the efforts of the previous year. The City understands that idle governments do not grow, yet it is the proactive vision of an organization that will continuously propel itself ahead. The preparation of this report would not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. The unconditional cooperation of the other departments and their respective staff is also greatly appreciated. We also would like to express a special note of thanks to our external auditors, Mauldin Jenkins, L.L.C., for their professional approach and high standards in the conduct of the independent audit of the City s financial records and transactions. 2.A.a

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ua l F ina nc ial R ep or t) v Sincere appreciation is also expressed to the members of the City Commission for their leadership and support in matters pertaining to the financial affairs of the City. Respectfully submitted,

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Deric C. Feacher City Manager

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Tavia Conner, CPA Finance Director

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ua l F ina nc ial R ep or t) vi C IT Y O F H A IN ES C IT Y O R G A N IZ A TI O N A L C H A R T CI TI ZE N S O F HA IN ES CI TY CI TY CO M M IS SI O N CI TY

AT TO

RN EY CI TY M AN AG ER CO M M U N IT Y DE VE LO PM EN T FI N AN CE FI RE HU M AN RE SO U RC ES LE IS U RE SE RV IC ES PO LI CE PU BL IC W O RK S U TI LI TI ES CI TY CL ER K 2.A.a Packet Pg. 18 A tta ch m en t:

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CITY OF HAINES CITY, FLORIDA

PRINCIPAL CITY OFFICIALS SEPTEMBER 30, 2017 CITY COMMISSION H.L. Roy Tyler, Mayor / Commissioner Morris West, Vice Mayor / Commissioner
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Anne Huffman, Commissioner Don Mason, Commissioner Horace West, Commissioner

CITY MANAGER

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Deric C. Feacher

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CITY CLERK Linda Bourgeois

CITY ATTORNEY Fred Reilly CITY AUDITORS Mauldin Jenkins, LLC 2.A.a Packet Pg. 19 A tta ch m en t:
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ua l F ina nc ial R ep or t) viii 2.A.a Packet Pg. 20 A tta ch m en t:

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ua l F ina nc ial R ep or t) FINANCIAL SECTION This section contains the following subsections:

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Independent Auditor's Report Management s Discussion and Analysis Basic Financial Statements Required Supplementary Information

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ua l F ina nc ial R ep or t) 1401 MANATEE AVE WEST, SUITE 1200 BRADENTON, FLORIDA 34205-7440 941-747-4483 855-891-0070 FAX 941-747-6035 MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS www.mjcpa.com INDEPENDENT AUDITOR S REPORT To the Honorable Mayor, Members of the City Council City of Haines City, Florida

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Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Haines City, Florida (the City ), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
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Management s Responsibility for the Financial Statements

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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 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 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. 2.A.a Packet Pg. 23 A tta ch m en t:

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Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2017, 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.
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Other Matters

Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis, budgetary comparison information, and pension and other post-employment benefit schedules on pages 4-14, 61-62 and 63-70, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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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, individual fund 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 accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and by Section 215.97, Florida Statutes, and is also not a required part of the basic financial statements of the City.

The individual fund statements and schedules and the schedule of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. 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. In our opinion, the individual fund statements and schedules and the schedule of expenditures of federal awards and state financial assistance are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2.A.a Packet Pg. 24 A tta ch m en t:
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The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2018, on our consideration of the City s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City s internal control over financial reporting and compliance. Bradenton, Florida March 27, 2018 2.A.a Packet Pg. 25 A tta ch m en t:

Tagged Passions:contract, compliance, audit, financial report, finance, grant, and regulation

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

4
The City of Haines City s (the City ) discussion and analysis is designed to provide the users with a narrative introduction, overview and analysis of the basic financial statements. Please read the information presented here in conjunction with the City s financial statements and footnotes that follow this report.

FINANCIAL HIGHLIGHTS

Tagged Passions:financial report and finance

The assets and deferred outflows of the City exceeded its liabilities and deferred inflows on September

30, 2017, by 89,938,192 (net position). This amount includes 66,249,418 invested in capital assets net of all related debt. Of this amount, unrestricted net position totals 14,348,604. The City s total net position increased by 6,040,629 or 7.20 .

As of September 30, 2017, the City s governmental funds reported combined ending fund balances of 15,547,669, an increase of 2,093,477 from the prior year. The improvement in the local economy along with extreme cost saving measures implemented by the City are the reasons for the modest improvement in the ending fund balance amount.

The City s total debt (including compensated absences and net pension liability) increased by 534,915 (0.8 ) during the current fiscal year.
Tagged Passions:retirement, funding, and economy

OVERVIEW OF THE FINANCIAL STATEMENTS

The financial statements focus on both the City as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the City s accountability. The City s basic financial statements are comprised of three components: (1) government-wide financial statements; (2) fund financial statements; and (3) notes to the financial statements. The comprehensive annual financial report also contains other supplementary information in addition to the basic financial statements. During the year ended September 30, 2016, the City adopted the provisions of GASB Statement No. 72 which improves the accounting and financial reporting related to fair value measurements impacting related disclosures. For the fiscal year ending September 30, 2015, the City implemented the provisions of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27, as well as Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date an amendment of FASB Statement No. 68, which required the restatement of the September 30, 2014, net position of the governmental activities, business-type activities and enterprise funds.
Tagged Passions:financial report, accountability, retirement, funding, finance, and business

In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflow of resources, represents consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City currently has 4,941,154 that qualifies for reporting in this category.

No additional detail provided

Tagged Passions:recognition, financial report, and finance

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflow of resources, represents consumption of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until then. The City currently has 658,993 that qualifies for reporting in this category.

2.A.a Packet Pg. 27 A tta ch m en t:

Tagged Passions:recognition, financial report, and finance

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

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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 focus is on activities rather than (the previous model s) fund types.

The Statement of Net Position presents information on all of the City s assets and liabilities, with the difference between the two reported as net position. The focus of the Statement of Net Position (the unrestricted net position ) is designed to be similar to bottom line results for the City and its governmental and business-type activities. Over time, the increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related 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 (e.g. uncollected revenues and earned but unused compensated absences).
Tagged Passions:financial report, finance, events, and business

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, and culture and recreation. The business-type activities of the City consist of water/sewer utility and stormwater utility.

The government-wide financial statements include not only the City itself (the primary government) but also the legally separate community redevelopment agency ( CRA ). Financial information for this component unit is blended with the financial information presented for the primary government itself since its board members are primarily the same as the members of the City Commission. The City has three defined benefit pension plans established for the exclusive benefit of its employees and beneficiaries. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over the 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: (1) governmental funds, (2) proprietary funds, and (3) fiduciary funds. Traditional users of governmental financial statements will find the fund financial statements presentation more familiar. 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 the City s near-term financing requirements. 2.A.a Packet Pg. 28 A tta ch m en t:
Tagged Passions:compliance, taxes, legal, public safety, Taxes, boards and commissions, Utility, financial report, intergovernmental, retirement, Conservation, funding, environment, finance, recreation, utility, transportation, stormwater, sewer, business, and water

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

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Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City s near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains four 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, the Capital Projects Fund, the CRA Fund, and the Debt Service Fund, all of which are considered to be major funds. The City adopts an annual appropriated budget for its General Fund and the CRA Fund. Budgetary comparison schedules have been provided for the General Fund and CRA Fund to demonstrate compliance with the budget. Proprietary funds. The City maintains two proprietary fund types. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water/sewer and stormwater utility systems. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. 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 City s pension trust funds are included in the fiduciary fund type.
Tagged Passions:budget, compliance, capital spending, Capital Spending, Utility, financial report, retirement, funding, finance, program, utility, stormwater, sewer, business, and water

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. GOVERNMENT-WIDE FINANCIAL ANALYSIS
Tagged Passions:financial report and finance

Statements of Net Position As noted earlier, net position may serve as a useful indicator of a government s financial position over time. For the current year, the City s assets exceeded liabilities by 89,938,192.

2.A.a Packet Pg. 29 A tta ch m en t:
Tagged Passions:finance

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

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The following table reflects the condensed Statements of Net Position for the current and prior years:

Current and other assets 16,861,380 14,937,444 16,924,040 17,124,177 33,785,420 32,061,621 Capital assets 60,541,645 61,546,558 59,907,116 56,618,204 120,448,761 118,164,762 Total assets 77,403,025 76,484,002 76,831,156 73,742,381 154,234,181 150,226,383 Deferred outflows 4,354,974 3,441,796 586,180 476,623 4,941,154 3,918,419

Long-term liabilities outstanding 47,810,000 46,773,892 15,755,730 16,092,085 63,565,730 62,865,977

Other liabilities 1,659,485 1,629,411 3,352,935 4,575,831 5,012,420 6,205,242 Total liabilities 49,469,485 48,403,303 19,108,665 20,667,916 68,578,150 69,071,219

Deferred inflows 531,718 999,678 127,275 176,342 658,993 1,176,020 Net investment in capital assets 22,040,679 21,719,202 44,208,739 39,912,100 66,249,418 61,631,302 Restricted 5,420,884 4,677,821 3,919,286 3,919,286 9,340,170 8,597,107 Unrestricted 4,295,233 4,125,794 10,053,371 9,543,360 14,348,604 13,669,154 Total net position 31,756,796 30,522,817 58,181,396 53,374,746 89,938,192 83,897,563 Governmental Activities Business-type Activities Total
Tagged Passions:investment and business

Seventy-three percent (73.7 ) of the City s net position reflects its investment in capital assets (e.g., land, buildings, improvements, infrastructure, and vehicles and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Tagged Passions:services, investment, and equipment

Ten percent (10.4 ) of the City s net position represents resources that are subject to external restrictions on how they may be used.

The increase in assets and net position of the City s business-type activities is primarily due to the additions made to the City s water distribution and sewer collection systems and a slight decrease of the City s long term liabilities offset by a small increase in the net pension liability. 2.A.a Packet Pg. 30 A tta ch m en t:
Tagged Passions:Utility, retirement, utility, sewer, business, and water

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

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Statements of Activities

The following table reflects the condensed Statements of Activities for the current and prior years: General revenues Property taxes 8,275,047 7,797,395 - - 8,275,047 7,797,395 Franchise taxes 1,869,686 1,810,206 - - 1,869,686 1,810,206 Utility taxes 1,839,880 1,771,016 - - 1,839,880 1,771,016 Communications service tax 566,800 518,919 - - 566,800 518,919 Local business tax 76,335 73,739 - - 76,335 73,739 Gas and fuel taxes 950,758 962,003 - - 950,758 962,003 State revenue sharing 2,310,556 2,184,678 - - 2,310,556 2,184,678 Unrestricted investment earnings 249,119 254,099 27,880 21,888 276,999 275,987 Gain on dispoal 106,870 7,258 - - 106,870 7,258 Total revenues 25,681,630 24,330,829 15,779,798 13,989,465 41,461,428 38,320,294 Expenses General government 4,703,311 3,468,800 - - 4,703,311 3,468,800 Public safety 9,053,067 8,703,603 - - 9,053,067 8,703,603 Physical environment 2,470,348 1,834,507 - - 2,470,348 1,834,507 Transportation 2,725,828 1,305,397 - - 2,725,828 1,305,397 Economic environment 237,847 292,272 - - 237,847 292,272 Culture and recreation 5,889,679 4,610,486 - - 5,889,679 4,610,486 Interest on long-term debt 1,367,571 1,976,589 - - 1,367,571 1,976,589 Water/sewer utility - - 8,461,798 6,349,429 8,461,798 6,349,429 Stormwater utility - - 511,350 297,363 511,350 297,363 Total expenses 26,447,651 22,191,654 8,973,148 6,646,792 35,420,799 28,838,446 Change in net position before transfers (766,021) 2,139,175 6,806,650 7,342,673 6,040,629 9,481,848 Transfers 2,000,000 1,600,000 (2,000,000) (1,600,000) - - Change in net position 1,233,979 3,739,175 4,806,650 5,742,673 6,040,629 9,481,848 Net position, beginning - as restated 30,522,817 26,783,642 53,374,746 47,632,073 83,897,563 74,415,715 Net position, ending 31,756,796 30,522,817 58,181,396 53,374,746 89,938,192 83,897,563 Governmental Activities Business-type Activities Total 2.A.a Packet Pg. 31 A tta ch m en t:
Tagged Passions:taxes, property, public safety, Taxes, Utility, Communications, Tony Taylor Custom, investment, communications, Conservation, environment, recreation, utility, transportation, stormwater, property tax, sewer, business, and water

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

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2.A.a

Packet Pg. 32 A tta ch m en t:

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

10
Governmental Activities

Governmental activities net position increased by 1,239,979. General revenues of governmental activities increased by 865,738 which indicates the local economy is stabilizing and property values have increased. Program revenues of governmental activities increased by 485,063, showing a modest increase over last year s gains from the City s red light camera program revenues. Charges for services increased by 406,362 as operating grants and contributions decreased by 78,701 and capital grants and contributions remained stagnant. The City has been and will continue to be active in securing grant funding for its looming infrastructure needs. The expenses for governmental activities increased by 4,255,997 compared to the prior year. This increase is primarily due to a more aggressive road paving program where 8.4 miles of roads were paved. Additionally, salaries were increased due to a compression study as well as hurricane related cleanup expenses. Business-type Activities Business-type activities net position increased by 4,806,650. Program revenues of business type activities increased by 1,784,341, due to an increase in the amount the City received in capital grant funding and water and sewer service revenues. Expenses of business-type activities increased by 2,326,356 or 35 due to the undertaking of major projects. The City continues to develop the most effective and efficient ways to provide services to its citizens while maintaining its current infrastructure as new developments are built. 2.A.a Packet Pg. 33 A tta ch m en t:
Tagged Passions:streets, property, services, Utility, development, funding, Development, program, grant, utility, economy, sewer, business, and water

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

11
FINANCIAL ANALYSIS OF THE CITY 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 a government s net resources available for spending at the end of the fiscal year.

Tagged Passions:compliance, legal, funding, and finance

As of September 30, 2017, the City s governmental funds reported combined ending fund balances of 15,547,669, an increase of 2,093,477 in comparison with the prior year. The increase is due to the improvement of the overall economic condition of the City. The City has implemented a non-ad valorem assessment for fire services to assist in offsetting a portion of the cost to provide fire protection. Each parcel of property is assessed 144.93. Additionally, any relative improvements upon the property are assessed at 0.85 per 1,000 of value. The data used to develop the assessment amount was obtained from the Polk County Property Appraiser. Also, the growth of the City superseded revenue projections.

The City has implemented the requirements of GASB 54 defining the manner in which Governmental Funds fund balance is classified. Fund balance is now divided into five categories: (1) non-spendable, (2) restricted, (3) committed, (4) assigned, and (5) unassigned. Non-spendable fund balance includes amounts that are not in spendable form (inventory or long-term receivables) or amounts that are required to be maintained intact (corpus of a permanent fund). Approximately 223,119 or 1.4 of total fund balance is classified as non-spendable. Restricted fund balance includes amounts that can be spent only for specific purposes stipulated by external resource providers such as creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Approximately 5,420,876 or 34.9 of total fund balance is classified as restricted. Committed fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action (resolution or ordinance) of the City Commission, the City s highest level of decision-making authority. Committed amounts cannot be used for any other purposes unless the City Commission removes or changes the specified use by taking the same type of formal action (resolution or ordinance) it employed to commit those funds. Approximately 385,282 or 2.5 of total fund balance is classified as committed. During the fiscal year of 2015, the City Commission committed funding of approximately 138,000, for the future construction of youth baseball/softball athletic fields. This revenue was generated due to the sale of East Park, to the City s Utility Department (Enterprise Fund) for the construction of a composting facility vis- -vis a public-private partnership. A corresponding resolution was adopted by the City Commission to restrict this revenue for recreational purposes specific to youth athletics. Capital construction has yet occurred, but staff has embarked upon a recreational master plan to address recreational programmatic needs for the next 15 to 20 years that was presented in fiscal year 2017. 2.A.a Packet Pg. 34 A tta ch m en t:
Tagged Passions:property, boards and commissions, services, ordinance, Utility, youth, athletics, ad valorem, parks, funding, recreation, utility, regulation, sale, construction, facility, and growth

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

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Assigned fund balance includes amounts established by City Management intended to be used for specific purposes.

Unassigned fund balance is the residual classification representing fund balance that has not been restricted, committed or assigned. Approximately 9,518,384 or 61.2 of total fund balance is classified as unassigned.

The General Fund is the chief operating fund of the City. At September 30, 2017, total fund balance of the General Fund is 13,741,305. Non-spendable fund balance equals 223,119 or 1.4 ; restricted fund balance equals 3,614,520 or 26.3 ; committed fund balance equals 385,282 or 2.8 : and unassigned fund balance equals 9,518,384 or 69.3 .

The fund balance of the City s General Fund increased by 1,274,265 during the current fiscal year. As stated earlier, this increase is due to an overall improvement in the City s economic condition, as well as new realized revenue streams and improved efficiencies in the delivery of services. The fund balance of the City s CRA fund increased by 812,383 during the current fiscal year. It is essential that governments maintain an adequate level of fund balance to mitigate risks and provide a back- up for revenue shortfalls. Therefore, the City has established the target minimum reserve balance in the City s General Fund Unassigned Fund Balance equal to 17 of the General fund s current fiscal year operating budget as recommended by the Governmental Finance Officers Association (GFOA). Currently the City is maintaining a 35.5 unassigned balance. Proprietary Funds The City s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the Water and Sewer Fund and the Stormwater Utility Fund at September 30, 2017, amounted to 9,570,622 and 482,749, respectively. All stormwater fees are being collected through an assessment process on an annual basis. The stormwater fees will be collected in arrears going forward; therefore there is a natural lag in the collection cycle. Net position invested in capital assets, net of related debt, was 43,329,772 in the Water and Sewer Fund at year end. The change in net position for these funds was an increase of 4,705,587 and 101,063, respectively. The change in net position for the Water and Sewer Fund was due to a positive result from operating activities along with large capital contributions during the year. GENERAL FUND BUDGETARY HIGHLIGHTS There is a 645,220 difference in appropriations between the original budget and the final amended budget for this fiscal year. The major reason for the difference is an increase in funding for the purchase of new police cars for our growing police department and to allow for leave payouts of employees retiring and departing the organization. The difference between the final amended budget and actual expenditures was 1,145,957 and can be summarized as follows:

Tagged Passions:budget, public safety, purchasing, services, Utility, grocery, financial report, risk, funding, finance, utility, stormwater, sewer, and water

Various General Government departments under budget. Solid Waste division reuse savings.

2.A.a Packet Pg. 35 A tta ch m en t:
Tagged Passions:budget, Utility, utility, and solid waste

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CITY OF HAINES CITY, FLORIDA MANAGEMENT S DISCUSSION AND ANALYSIS

Year Ended September 30, 2017

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Public safety personnel attrition vacancies. Impact fees budgeted but not expended. Salary savings within other departments throughout the City due to vacant positions. Fuel costs decreased resulting from a decrease in gas prices.

No additional detail provided

Tagged Passions:budget, personnel, and public safety

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets The City s investment in capital assets for its governmental and business-type activities, net of related debt, amounts to 66,249,418 (net of accumulated depreciation) as of September 30, 2017. This investment in capital assets includes land, buildings, improvements, infrastructure, vehicles and equipment. The total increase in the City s investment in capital assets, net of related debt, for the current fiscal year (net of accumulated depreciation) was 2,354,661 (an increase of 321,477 and an increase of 4,296,639 for governmental activities and business-type activities, respectively).
Tagged Passions:investment, equipment, and business

Major capital projects with substantial expenditures during the current fiscal year included the following:

Wastewater Treatment Plant Upgrades (Compost Facility and Anionic Ion Exchange System)

Tagged Passions:capital spending, Capital Spending, plant, facility, and sewer

City of Haines City, Florida Capital Assets (Net of Accumulated Depreciation)

Land 9,208,573 8,986,434 728,150 728,150 9,936,723 9,714,584 Plant improvements - - 44,377,423 40,691,274 44,377,423 40,691,274 Buildings and improvements 39,917,777 42,089,580 259,621 191,495 40,177,398 42,281,075 Equipment 1,716,333 1,502,826 4,632,794 5,016,008 6,349,127 6,518,834 Transportation equipment 2,416,770 1,351,883 495,227 392,905 2,911,997 1,744,788 Infrastructure 6,077,516 6,398,553 427,093 440,158 6,504,609 6,838,711 Library books 88,598 142,422 - - 88,598 142,422 Construction in progress 1,116,078 1,074,860 8,986,808 9,158,214 10,102,886 10,233,074 Governmental Activities Business-type Activities Total Additional information on the City s capital assets can be found in Note 4 to the Financial Statements on pages 40 - 41 of this report. Long-term Debt At the end of the current fiscal year, the City had total long term liabilities of 64,527,257, an increase of 534,915 from the prior year.
Tagged Passions:Tony Taylor Custom, financial report, plant, equipment, library, finance, transportation, construction, 911, and business

City of Haines City, Florida Long-Term Debt

Total long term liabilities 47,810,000 46,773,892 16,717,257 17,218,450 64,527,257 63,992,342 Governmental Activities Business-type Activities Total 2.A.a Packet Pg. 36 A tta ch m en t:
Tagged Passions:business

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Additional information on the City s long-term debt can be found in Note 7 to the Financial Statements on pages 43 - 47 of this report.

No additional detail provided

Tagged Passions:financial report and finance

NEXT YEAR S BUDGETS AND RATES

Tagged Passions:budget and rates

For fiscal year 2018, the City s millage rate remained the same at 7.5895 mills. For the fiscal year 2017, the City s property tax valuation increased by 98,336,875 (10.4 ). The increase is due to the upturn in property values as well as new growth on old agriculture properties now being developed. However, balancing the annual budget continues to be a struggle as the City moves forward and grows. The City has approved the levy of a Fire Service Assessment for property within the city limits of Haines City for the third year. Each parcel of land will be assessed a flat amount of 144.93 plus 0.85 per every 1,000 of value for all relative improvements upon that parcel. The billing for the assessment will be included on the property owner s tax bill which is issued by the Polk County Tax Collector.

ECONOMIC FACTORS With all major market indicators showing that the economy is slowly recovering, the City is optimistic about what lies ahead in the coming fiscal years. Although the City s housing market remains well below what it was in 2007, activity is slowly gaining momentum. The City issued 1,891 building permits in fiscal year 2017, compared to 1,431 last year and is currently trending at record levels of permits issued in 2006. Therefore, optimism remains high that this upward momentum will continue. The area s unemployment rate continues to drop. The current rate is 4.6 , well below the double digit rate of several years ago. The City will continue to work in unison to be good stewards of the financial resources collected from our residents to ensure that we manage the financial resources we have judiciously for future generations. The City is optimistic with the economic growth that is occurring in the community but understand there is still work to be done and we have a long way to go. When you look at Haines City s geographical location you see that it is the heart of Florida. It is within a short driving distance of some of the major tourist attractions of the world. The City has begun a campaign to take advantage of its location and become a destination point. With events like the Florida Iron Man competition, Ribs on the Ridge-Jack Daniels qualifying bar-b-que competition and Thunder on the Ridge Fourth of July Celebration, the City hopes to attract other events to stimulate the local economy. The City has invested 25 million in Lake Eva Park located in the City boundaries. The park is a multi-purpose recreational facility that rivals any in the area and has the capacity to accommodate a variety of different type and size events. The City wants to become a destination point. We found our heartbeat in the heart of Florida; we invite everyone to come find theirs. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City s finances for all those with an interest in 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, City of Haines City, 620 E. Main Street, Haines City, Florida 33844. 2.A.a Packet Pg. 37 A tta ch m en t:

Tagged Passions:budget, taxes, streets, property, Taxes, financial report, agriculture, parks, market, finance, recreation, housing, facility, growth, events, property tax, and economy

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ua l F ina nc ial R ep or t) Governmental Business-type Activities Activities Total

Tagged Passions:business

ASSETS Cash and cash equivalents 12,098,129 9,972,431 22,070,560 Accounts receivable, net 970,665 1,386,756 2,357,421 Internal balances 18,036 (18,036) - Due from other governments 308,255 468,377 776,632 Inventory 51,265 92,006 143,271 Prepaid items 171,409 - 171,409 Restricted cash and cash equivalents 3,243,176 5,022,506 8,265,682 Long-term receivables 445 - 445 Capital assets

Non-depreciable assets 10,324,651 9,714,958 20,039,609 Depreciable assets, net of depreciation 50,216,994 50,192,158 100,409,152 TOTAL ASSETS 77,403,025 76,831,156 154,234,181 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - pensions 3,373,161 586,180 3,959,341 Deferred loss on refunding 981,813 - 981,813 Total deferred outlows of resources 4,354,974 586,180 4,941,154 LIABILITIES Accounts payable 992,550 1,045,263 2,037,813 Due to other governments 22,344 - 22,344 Accrued interest 345,774 - 345,774 Accrued payroll 233,323 69,423 302,746 Deposits 46,279 - 46,279 Unearned revenues 19,215 - 19,215 Current liabilities payable from restricted assets

Tagged Passions:retirement

Accrued interest payable - 92,767 92,767 Current portion of long-term debt - 961,527 961,527 Deposits - 1,170,940 1,170,940 Other liabilities - 13,015 13,015

No additional detail provided

Noncurrent liabilities Portion due within one year 2,693,920 150,290 2,844,210 Portion due after one year 45,116,080 15,605,440 60,721,520

TOTAL LIABILITIES 49,469,485 19,108,665 68,578,150 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions 531,718 127,275 658,993 NET POSITION Net investment in capital assets 22,040,679 44,208,739 66,249,418 Restricted for Unrestricted 4,295,233 10,053,371 14,348,604 TOTAL NET POSITION 31,756,796 58,181,396 89,938,192 Primary Government
Tagged Passions:investment and retirement

STATEMENT OF NET POSITION

CITY OF HAINES CITY, FLORIDA

The notes to the financial statements are an integral part of this statement. 15 2.A.a Packet Pg. 39 A tta ch m en t:
Tagged Passions:financial report and finance

20
17

H ai ne s Ci ty (C om pr eh en siv

e
A nn

ua l F ina nc ial R ep or t) O pe ra tin g C ap ita l C ha rg es fo r G ra nt s a nd G ra nt s a nd G ov er nm en ta l B us in es s- ty pe E xp en se s Se rv ic es C on tr ib ut io ns C on tr ib ut io ns A ct iv iti es A ct iv iti es T ot al PR IM A R Y G O V E R N M E N T G ov er nm en ta l a ct iv iti es G en er al g ov er nm en

31
1

1, 52 9, 73

9
7,

- (3 ,1 65 ,8 94 ) -

94
)

Pu bl ic sa fe 3, 58 3, 28

2
55

,0 87 -

14
,6

No additional detail provided

98
)

- (5 ,4 14 ,6 98 ) Ph ys ic al

e
nv

iro nm en t 2, 47 0, 34

8
2,

23
8

- - - Tr an sp or ta tio n 2, 72 5, 82

8
35

0, 07

8
-

-

50
)

- (2 ,3 75 ,7 50 ) Ec on om ic

e
nv

iro nm en t

23
7,

- - - (2

37
,8

No additional detail provided

47
)

- ,8 47 ) C ul tu re a nd re cr ea tio n 5, 88 9, 67

9
56

8, 41

8
34 9,

- (4 ,9 72 ,2 02 ) -

02
)

In te re st o n lo ng -te rm d eb t 1, 36 7, 57

1
-

- - (1 ,3 67 ,5 71 ) -

71
)

T ot al g ov er nm en ta l a ct iv iti ,4 47 ,6 51 9,

41
1,

- (1 7, 01 1, 07 2) - (1 7, 01 1, 07 2) B us in es s- ty pe a ct iv iti es W at er a nd se w er 8, 46 1, 79

8
12

,2 54 ,9 74 - 2,

40
7

- 6, 6, 67 9, 58

3
St or

m w at er

35
0

61 0, 53

7
-

- - 99 ,1 87 87 T ot al b us in es s- ty pe a ct iv iti

14
8

No additional detail provided

12
,8

No additional detail provided

11
-

2, 88 6, 40

7
-

6, 77 8, 77

0
6,

T ot al p ri m ar y go ve rn m en ,4 20 ,7 99

21
,8 90

,2 66

41
1, 82

4
2, 88

6, 40

7
(1

7, 01 1, 07 2) 6,

23
2,

No additional detail provided

30
2)

G E N E R A L R E V E N U E S Pr op er ty ta xe s 8, 27 5, 04

7
-

8, 27 5, 04

7
G as

a nd fu el ta xe s 95 0, 75

8
-

95 0, 75

8
U til

ity ta xe s 1, 83 9, 88

0
-

1, 83 9, 88

0
C om

m un ic at io ns se rv ic e ta x - Lo ca l b us in es s t ax 76 ,3 35 - 76 ,3 35 Fr an ch is e ta xe - 1, St at e re ve nu e sh ar in g 2, 31 0, 55

6
-

2, 31 0, 55

6
G ai

n on d is po sa l o f c ap ita l a ss et s

10
6,

-

10
6,

U nr es tri ct ed in ve st m en t e ar ni ng 9, 11

9
27

,8 80

27
6,

T ot al g en er al r ev en ue ,2 45 ,0 51

27
,8

80

16
,2 72

,9 31 Tr an sf er (2 ,0 00 ,0 00 ) - T ot al g en er al r ev en ue s a nd tr an sf er ,2 45 ,0 51

20
)

No additional detail provided

16
,2

No additional detail provided

31
C ha

ng e in n et p os iti on 1, 23 3, 97

9
4, 80

6, 65

0
6,

N et p os iti on , b eg in ni ng o f y ea ,5 22 ,8 17 46 83 ,8 97 ,5 63 N et p os iti on , e nd o f y ea ,7 56 ,7 96 96 89 ,9 38 ,1 92 The notes to the financial statements are an integral part of this statement. 16 C IT Y O F H A IN E S C IT Y , F L O R ID A ST A T E M E N T O F A C T IV IT IE S FO R T H E F IS C A L Y E A R E N D E D S E PT E M B E R
Tagged Passions:financial report and finance

3
0,

2
01

7
Pr og

ra m R ev en ue s N et (E xp en se ) R ev en ue a nd C ha ng es in N et P os iti on 2.A.a Packet Pg. 40 A tta ch m en t:

20
17

H ai ne s Ci ty (C om pr eh en siv

e
A nn

ua l F ina nc ial R ep or t) Capital Debt Total General Projects CRA Service Governmental

Fund Fund Fund Fund Funds Assets Cash and cash equivalents 10,167,692 8 1,930,429 - 12,098,129 Accounts receivable 970,665 - - - 970,665 Due from other funds 18,036 - - - 18,036 Due from other governments 308,255 - - - 308,255 Inventory 51,265 - - - 51,265 Prepaid items 171,409 - - - 171,409 Restricted cash and cash equivalents 3,173,525 - - 69,651 3,243,176 Long-term receivables 445 - - - 445

Total assets 14,861,292 8 1,930,429 69,651 16,861,380

Tagged Passions:funding

Liabilities Accounts payable 801,901 - 190,649 - 992,550 Due to other governments 22,344 - - - 22,344 Accrued payroll 230,248 - 3,075 - 233,323 Other current liabilities 46,279 - - - 46,279 Unearned revenue 19,215 - - - 19,215

Fund Balances Nonspendable Restricted for Building permits 440,995 - - - 440,995 Impact fee requirements 3,102,195 - - - 3,102,195 Confiscated property 58,991 - - - 58,991 Law enforcement training 12,339 - - - 12,339 Community development - - 1,736,705 - 1,736,705 Debt Service - - - 69,651 69,651 Committed for capital projects 385,282 - - - 385,282 Unassigned 9,518,384 - - - 9,518,384 Total fund balances 13,741,305 8 1,736,705 69,651 15,547,669 Total liabilities and fund balances 14,861,292 8 1,930,429 69,651 16,861,380

Tagged Passions:property, capital spending, public safety, Capital Spending, development, training, Development, and community development

CITY OF HAINES CITY, FLORIDA

BALANCE SHEET The notes to the financial statements are an integral part of this statement. 17 2.A.a Packet Pg. 41 A tta ch m en t:
Tagged Passions:financial report and finance

20
17

H ai ne s Ci ty (C om pr eh en siv

e
A nn

ua l F ina nc ial R ep or t)

CITY OF HAINES CITY, FLORIDA

RECONCILIATION OF BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION

Total fund balances for governmental funds 15,547,669
Tagged Passions:funding

1.
Land 9,208,573

39,917,777 Equipment, net of 5,513,558 accumulated depreciation 1,716,333 2,416,770 Infrastructure, net of 4,043,567 accumulated depreciation 6,077,516 Library books, net of 669,841 accumulated depreciation 88,598 Construction in progress 1,116,078 Total capital assets, net 60,541,645

Tagged Passions:equipment, library, and construction

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