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.
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
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:
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:
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.
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.
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
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
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:
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:
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
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.
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:
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:
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
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
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
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
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