Table of Contents I. Introductory Section
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CITY OF GULF BREEZE, FLORIDA GULF BREEZE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2019 I. Introductory Section I. Introductory Section Table of Contents Letter of Transmittal Government Finance Officers Certificate of Achievement in Financial Reporting Organizational Chart List of Elected and Appointed Officials CITY OF GULF BREEZE, FLORIDA GULF BREEZE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2019 TABLE OF CONTENTS Page Exhibit TITLE PAGE I. INTRODUCTORY SECTION Table of Contents iv Letter of Transmittal viii GFOA Certificate of Achievement xviii Organizational Chart xx City Officials xxii II. FINANCIAL SECTION Independent Auditor’s Report 1 A. MANAGEMENT’S DISCUSSION AND ANALYSIS 5 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 25 I Statement of Activities 26 II Fund Financial Statements Governmental Fund Financial Statements Balance Sheet 27 III - A Reconciliation of the Balance Sheet to the Statement of Net Position 28 III - B Statement of Revenues, Expenditures and Changes in Fund Balances 29 IV - A Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 30 IV - B Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 31 V Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Urban Core Redevelopment Special Revenue Fund 32 VI iv CITY OF GULF BREEZE, FLORIDA GULF BREEZE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2019 TABLE OF CONTENTS (Continued) Exhibit/ Page Schedule II. FINANCIAL SECTION (CONTINUED) B. BASIC FINANCIAL STATEMENTS (Continued) Proprietary Fund Financial Statements Statement of Net Position 34 VII Statement of Revenues, Expenses and Changes in Net Position 36 VIII Statement of Cash Flows 38 IX Fiduciary Fund Financial Statements Statement of Fiduciary Net Position 40 X Statement of Changes in Fiduciary Net Position 41 XI Notes to Financial Statements 43 C. REQUIRED SUPPLEMENTARY INFORMATION Pension Schedules Schedule of Proportionate Share of Net Pension Liability - Florida Retirement System Pension Plan 103 A-1 Schedule of Proportionate Share of Net Pension Liability - Health Insurance Subsidy Program 104 A-2 Schedule of Changes in Employer Net Pension Liability and Related Ratio - Florida Municipal Pension Trust Fund 105 A-3 Schedule of Contributions - Florida Retirement System Pension Plan 106 A-4 Schedule of Contributions - Health Insurance Subsidy Program 107 A-5 Schedule of Contributions - Florida Municipal Pension Trust Fund 108 A-6 Notes to the Schedule of Contributions - Florida Municipal Pension Trust Fund 109 A-7 Schedule of Changes in Total OPEB Liability and Related Ratios 110 A-8 v CITY OF GULF BREEZE, FLORIDA GULF BREEZE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2019 TABLE OF CONTENTS (Continued) Schedule/ Page Table II. FINANCIAL SECTION (CONTINUED) D. COMBINING AND INDIVIDUAL NON-MAJOR FUND STATEMENTS Non-Major Governmental Funds Combining Balance Sheet 111 B-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 112 B-2 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Traffic Citation Special Revenue Fund 113 B-3 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Tourist Development Special Revenue Fund 114 B-4 Non-Major Proprietary Funds Statement of Net Position 115 C-1 Statement of Revenues, Expenses and Changes in Net Position 116 C-2 Statement of Cash Flows 118 C-3 III. STATISTICAL SECTION (UNAUDITED) Components of Net Position 121 I Changes in Net Position 122 II Charges for Services by Function and Program 124 III Components of Fund Balance 125 IV Changes in Fund Balances - Governmental Funds 126 V Property Tax Levies and Collections 127 VI Assessed Value of Taxable Property 128 VII Property Tax Rates Per $1,000 of Taxable Value - All Direct and Overlapping Governments 129 VIII Principal Taxpayers 130 IX Special Assessment Billings and Collections 131 X Outstanding Debt 132 XI Ratio of Total Debt to Assessed Value and Total Debt per Capita 133 XII Computation of Legal Debt Margin 134 XIII Ratio of Net General Bonded Debt To Assessed Value and Net Bonded Debt Per Capita 135 XIV Computation of Direct and Overlapping Debt - General Obligations 136 XV vi CITY OF GULF BREEZE, FLORIDA GULF BREEZE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2019 TABLE OF CONTENTS (Continued) Page Table III. STATISTICAL SECTION (UNAUDITED) (CONTINUED) Revenue Bond Coverage - South Santa Rosa Utility Certificates 137 XVI Miscellaneous Demographical Statistics 138 XVII Schedule of Property Value, Construction, and Bank Deposits 139 XVIII Principal Employers 140 XIX Permits 141 XX Water Service Rates 142 XXI Sewer Service Rates 143 XXII Solid Waste Service Rates 144 XXIII Natural Gas Service Rates 145 XXIV Insurance Coverage 146 XXV Full-time Equivalent City Government Employees by Function 147 XXVI Operating Indicators by Function 148 XXVII Capital Asset Statistics by Function 149 XXVIII IV. COMPLIANCE SECTION Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 151 Management Letter 153 Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes 156 vii April 16, 2020 To the Honorable Mayor, City Council Members and the Citizens of City of Gulf Breeze, Florida Chapter 218.32, Florida Statutes, requires every local government to publish a complete set of financial statements presented in conformity with generally accepted accounting principles (“GAAP”) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. This report is published to fulfill that requirement for the fiscal year ended September 30, 2019. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. The cost of internal control should not exceed anticipated benefits. Accordingly, the objective of internal control is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Saltmarsh, Cleaveland & Gund, PA, a firm of certified public accountants, has audited the City of Gulf Breeze’s (the City) financial statements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Gulf Breeze financial statements for the fiscal year ended September 30, 2019, are fairly presented in conformity with GAAP. The independent auditor’s report is presented in Section II - Financial Section, as the first component of the Financial Section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A compliments this letter of transmittal and should be read in conjunction with the financial statements. PROFILE OF THE GOVERNMENT The City was incorporated on August 10, 1961 and is located on the end of the Fairpoint Peninsula in Santa Rosa County. The City is 4.5 square miles and has approximately 5,849 residents. The City has 18 miles of waterfront and three protected bayous, where residents enjoy all types of waterfront activities. Gulf Breeze is separated on the north by a three-mile bridge across the Pensacola Bay from the City of Pensacola and Escambia County, and by the Bob Sikes Bridge (commonly known as the Pensacola Beach Bridge) over Santa Rosa Sound to Pensacola Beach. To the east is the Gulf Islands National Seashore, located within the City limits, and covers approximately 1,329 acres including nature trails, picnic facilities, park ranger facilities, and beach access. viii (850) 934-5100 FAX (850) 934-5114 P.O. BOX 640 1070 SHORELINE DRIVE GULF BREEZE, FLORIDA 32562-0640 The City operates under the Council/Manager form of government. The City Council is comprised of five members. Under the City charter, one Council office may be the office of the Mayor and four Council members are elected at large. Council terms run for a period of four years with terms expiring on alternating years. Mayoral and Council terms begin 30 days after the date of election. The Mayor and Council enact ordinances and resolutions relative to municipal services, levy taxes, establish appropriations, issue debt and institute other fees and regulations, which aid in the maintenance of equitable treatment and quality standards within the municipality. All legislative and administrative powers of the municipality and the determination of all matters of policy are vested in the municipal council. Each member of Council, including the Mayor, has one vote in each matter. The City Manager is the head of the administrative branch of the government. The City Manager has complete and full authority, acting on behalf of the City Council,