City of jacksonville Comprehensive Annual Financial Report Fiscal Year 2017 CCITY OF JJACKSONVILLE,, FFLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 PREPARED BY THE DEPARTMENT OF FINANCE ACCOUNTING DIVISION DRAFT (This page is intentionally left blank.) City of Jacksonville, Florida Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2017 TABLE OF CONTENTS INTRODUCTORY SECTION LETTER OF TRANSMITTAL ............................................................................................. i – xvii CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING ............................................................................................ xviii ORGANIZATIONAL CHART ................................................................................................... xix LISTING OF CITY OFFICERS, CONSTITUTIONAL OFFICEHOLDERS, AND CITY COUNCIL OFFICIALS AND STAFF ....................................................... xx - xxi FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ..............................1 – 3 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 .......................................................................................................4 – 5 MANAGEMENT'S DISCUSSION AND ANALYSIS ........................................................... 7 - 20 BASIC FINANCIAL STATEMENTS CITYWIDE FINANCIAL STATEMENTS Statement of Net Position ..............................................................................................................22 Statement of Activities ...................................................................................................................23 FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds .................................................................................... 28 - 29 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .....................................................................................31 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ........................................................................................................ 32 - 33 FINANCIAL SECTION (CONTINUED) Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities .................................34 Statement of Net Position - Proprietary Funds ...................................................................... 36 - 37 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds .....................................................................................................................39 Statement of Cash Flows - Proprietary Funds ....................................................................... 40 - 43 Statement of Fiduciary Net Position ..............................................................................................46 Statement of Changes in Fiduciary Net Position ...........................................................................47 MAJOR COMPONENT UNITS Combining Statement of Net Position – Component Units ................................................... 50 - 51 Combining Statement of Activities – Component Units ...................................................... 52 - 53 NOTES TO THE FINANCIAL STATEMENTS ............................................................. 55 -151 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund .........................................................................................154 Notes to Required Supplemental Information ................................................................... 155 - 156 Schedule of Contributions - City of Jacksonville Retirement System.................................................................................157 Schedule of Changes in Net Pension Liability - City of Jacksonville Retirement System........................................................................ 158 -159 Schedule of Money-Weighted Rate of Return City of Jacksonville Retirement System.................................................................................160 Notes to Required Supplementary Information - City of Jacksonville Retirement System....................................................................... 161 - 162 Schedule of the City’s Proportionate Share of Net Pension Liability ..............................................................................................................163 FINANCIAL SECTION (CONTINUED) Schedule of Contributions - Police and Fire Retirement System ........................................................................................164 Schedule of Contributions - Police and Fire Pension Fund, Senior Staff Voluntary Retirement Plan ................................165 Schedule of Changes in Net Pension Liability - Police and Fire Retirement System .............................................................................. 166 - 167 Schedule of Changes in Net Pension Liability - Police and Fire Pension Fund, Senior Staff Voluntary Retirement Plan ................................168 Schedule of Money-Weighted Rate of Return Police and Fire Retirement System ........................................................................................169 Schedule of Funding Progress - Employment Benefits Other than Pension (OPEB) ...............................................................170 COMBINING INDIVIDUAL FUND STATEMENTS AND SCHEDULES GOVERNMENTAL FUNDS Combining Balance Sheet - Nonmajor Governmental Funds ...................................... 174 - 180 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ............................... 182 - 188 Budgetary Comparison Schedules - Nonmajor Governmental Funds ......................... 190 - 197 PROPRIETARY FUNDS Combining Statement of Net Position - Nonmajor Enterprise Funds .......................... 200 - 201 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Nonmajor Enterprise Funds ................................ 202 - 203 Combining Statement of Cash Flows - Nonmajor Enterprise Funds ........................... 204 - 207 FINANCIAL SECTION (CONTINUED) INTERNAL SERVICE FUNDS Combining Statement of Net Position - Internal Service Funds .................................. 210 - 211 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds ........................................ 212 - 213 Combining Statement of Cash Flows - Internal Service Funds ................................... 214 - 217 FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Fiduciary Net Position - Pension Trust Funds .........................220 Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds ....................................................................................................221 AGENCY FUNDS Combining Statement of Fiduciary Assets and Liabilities - Agency Funds .................................................................................................... 222 - 223 Combining Statement of Changes in Assets and Liabilities Fiduciary Funds - All Agency Funds .............................................................................................. 224 - 226 COMPONENT UNITS Balance Sheet – Jacksonville Housing Finance Authority ....................................................228 Statement of Revenues, Expenditures and Changes in Fund Balances - Jacksonville Housing Finance Authority...........................................................................229 FINANCIAL SECTION (CONTINUED) SUPPLEMENTAL INFORMATION Schedule of Long-Term Bonded Indebtedness ............................................................ 232 - 237 Schedule of Debt Service Requirements Compared to Cash in Sinking Fund Long-Term Obligations .................................................. 238 - 241 Schedule of Debt Service Requirements to Maturity - Governmental Activities Revenue Bonds Supported by General Fund ......................................................... 242 - 249 Schedule of Debt Service Requirements to Maturity - Governmental Activities Special Revenue Bonds Supported by Better Jacksonville Plan Revenues ........... 250 - 252 Schedule of Debt Service Requirements to Maturity - Governmental Activities Revenue Bonds Supported by Better Jacksonville Plan Revenues ........................ 254 - 257 Schedule of Debt Service Requirements to Maturity - Governmental Activities Notes Payable Supported by Better Jacksonville Plan Revenues ....................................258 Schedule of Debt Service Requirements to Maturity - Governmental Activities Special Revenue Bonds and Notes Payable from Internal Service Operations ..... 260 - 264 Schedule of Debt Service Requirements to Maturity - Payable from Enterprise Funds .............................................................................. 266 - 270 Schedule of Self Insurance - Workers Compensation ................................................. 272 - 273 Schedule of Self Insurance – General Liability ..........................................................