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2015-06-02CITY OF OKEECHOBEE .JUNE 2, 2015 REGULAR CITY COUNCIL MEETING 55 SE 3RD AVENUE * COUNCIL CHAMBERS * OKEECHOBEE, FL 34974 SUMMARY OF COUNCIL ACTION I. CALL TO ORDER — Mayor June 2, 2015, City Council Regular Meeting, 6:00 P.M. II. OPENING CEREMONIES Invocation to be given by the Director of Children's Ministry, Nancy Vaughan, First United Methodist Church; Pledge of Allegiance led by Mayor Kirk. III. MAYOR, COUNCIL AND STAFF ATTENDANCE - City Clerk Mayor James E. Kirk Council Member Noel A. Chandler Council Member Mike O'Connor Council Member Gary Ritter Council Member Dowling R. Watford, Jr. City Administrator Brian Whitehall City Attorney John R. Cook City Clerk Lane Gamiotea Deputy Clerk Melisa Jahner Police Chief Denny Davis Fire Chief Herb Smith Public Works Director David Allen IV. AGENDA - Mayor A. Requests for the addition, deferral or withdrawal of items on today's agenda V. PRESENTATIONS AND PROCLAMATIONS A. Present a 10-Year Longevity Service Award to Administrator Brian Whitehall. PAGE 1 OF 6 Mayor Kirk called the June 2, 2015, Regular City Council Meeting to order at 6:00 P.M. The invocation was offered by Nancy Vaughan, Director of Children's Ministry, First United Methodist Church; the Pledge of Allegiance was led by Mayor Kirk. City Clerk Gamiotea called the roll: Present Present Present Present Present Present Present Present Present Present Present Present Mayor Kirk asked whether there were any requests for the addition, deferral or withdrawal of items on today's agenda. New Business Item G, Exhibit 5 was added. City Administrator Brian Whitehall was recognized by Mayor Kirk for his ten years of longevity service. He was presented with a leather portfolio embossed with his name and years of service; and a framed Certificate which read `1n Recognition of your 10-years of Service, Hard Work, and Dedication to the City, its citizens, and your fellow employees, from June 1, 2005, to June 1, 2015." This being his last meeting before retirement, Mr. Whitehall addressed the Council, recapping highlights during his ten years, and thanked everyone for their support. The Council each expressed their accolades on his job performance and wished him well. 411 412 JUNE 2, 2015 - REGULAR MEETING - PAGE 2 OF 6 AGENDA COUNCIL ACTION - DISCUSSION - VOTE V. PRESENTATIONS AND PROCLAMATIONS CONTINUED B. Present a 10-Year Longevity Service Award to Fred Sterling. Code Enforcement Officer Fred Sterling was recognized by Chief Smith and Mayor Kirk for his ten years of service. He was presented with a leather portfolio embossed with his name and years of service; and a framed Certificate which read: `9n Recognition of your 10-years of Service, Hard Work, and Dedication to the City, its citizens, and your fellow employees, from May 27, 2005, to May 27, 2015." Mr. Sterling was accompanied by his wife VI. MINUTES -City Clerk Janice to celebrate this milestone. A. Motion to dispense with the reading and approve the Summary of Council Motion and second by Council Members O'Connor and Chandler to dispense with the reading and approve the Action for the May 19, 2015, Regular Meeting. Summary of Council Action for the May 19, 2015, Regular Meeting. There was no discussion on this item. VII. NEW BUSINESS A. Presentation and discussion regarding the City of Fellsmere's experience with a CRA and a TIF District - Jason Nunemaker, Fellsmere City Manager B. Discussion regarding CRA improvements in the City of Okeechobee Downtown Parks - Shade Turgeon, Okeechobee Main Street - (Exhibit 1). VOTE: KIRK — YEA CHANDLER — YEA O'CONNOR — YEA RITTER — YEA WATFORD — YEA MOTION CARRIED. Mr. Jason Nunemaker, City Manager of Fellsmere, presented a power point addressing his City's experience with initiating a Community Redevelopment Area (CRA). He emphasized a critical factor is the CRA is only as effective as your vision. The first step is to create a plan which targets areas that can support the creation of the CRA such as the presence of substandard or inadequate structures, inadequate infrastructure, insufficient roadways, and inadequate parking. The plan should also incorporate ideas and goals through a partnership with the community and downtown business owners. The Council should prioritize the plan, and then set it into action. Mr. Nunemaker advised that the City not incur debt to attract new businesses, nor get into the practice of gentrification or displacement. However, an element to assist the CRA is a Tax Incrementing Financing (TIF), which is revenue produced by the increase in property tax generated over time from increased assessed value in the target area. Proceed with caution and resist the urge to designate the entire incorporated area as the TIF District, as then the City may be left "holding the bag" should there be no increased assessed valuation, or should it fall back down to its previous level toward the end of the TIF period. Training is highly recommended for both the City Council and Staff. Further, to be sure to designate the Council as the CRA Board with the Administrator as the Executive Director, this will give the City the capability to keep control of the program. The Council thanked Mr. Nunemaker for his expert advice and presentation. There was no official action required on this item. The topic of implementing a CRA project was introduced by Okeechobee Main Street (OKMS) Executive Director Shade Turgeon, on May 5, 2015. The item was to be brought back once Mr. Nunemaker could educate the City Council on the pros and cons of a CRA, which was the previous item. OKMS President, Mrs. Maureen Burroughs addressed the Council explaining she took the time since the last meeting to visit the downtown businesses, asking them how they have been impacted by the State Roadway construction and what would they like to see in the downtown area and parks. Surprisingly, the business owners were initially upset when the trees were removed from the parks to widen the roadway. However, this has made their businesses more visible and further are requesting that trees not be replanted on the perimeter of the parks. Additionally, they would like to see more seating and some form of shade in the parks. ` .TUNE 2, 2015 - REGULAR MEETING - PAGE 3 OF 6 413 VII. NEW BUSINESS CONTINUED B. Discussion regarding CRA improvements in the City of Okeechobee Downtown Parks continued. C. Discuss FYE 2014 Audit/Financial Report - Carr, Riggs, & Ingram, LLC. The majority of the Council expressed their agreement that now is the time to proceed forward with formulating a plan to redevelop the downtown area and parks. Several of the Council, Mayor Kirk and Mrs. Burroughs agreed it should but be approached as a 'piece -meal' type of project. There needs to be a vision and some collaboration which also can tie in with the CRA. Council authorized Public Works Director Allen to coordinate with OKMS on their fact finding research and collection of information from all the downtown businesses and land owners. A workshop should be scheduled to review the information gathered, and decide the next course of action . Mr. Chas Hoyman, and Mr. John Taldi of Carr, Riggs & Ingram, LLC, were present to address the Council regarding the City's Financial Statement (Audit Report), for Fiscal Year October 1, 2013, through September 30, 2014. Prior to the meeting, copies of the report were distributed to the Mayor and Council. The independent audit report reflects there were no compliance issues and the City is in a strong financial position, with total assets exceeding liabilities by $18,764,230.00. The total net position decreased from FY 2012-2013 by $206,452.00. This was due to two reasons. The first reason given was a $37,167.00 increase in total assets, caused by a $270,646.00 increase in capital assets offset by a $233,479.00 decrease in current and other assets. The second reason was a $243,619.00 increase of total liabilities and deferred inflows, caused by a $203,901.00 increase of noncurrent liabilities triggered by increases in the net Other -Post -Employment -Benefits (OPEB) obligation. The net change in current and noncurrent liabilities was $239,189.00 as current liabilities increased by $35,288.00 related to the timing of payables. Mr. Hoyman continued by explaining total revenues increased by less than 1 percent (or $12,357.00). This was due to a $114,403.00 increase in general revenues that was offset by a $91,587.00 decrease in capital grants funded by various programs. Property tax revenue decreased due to the declining assessed taxable values by $14,991.00. However, franchise fee revenues increased $38,489.00 based on higher consumer paid utilities as well as an increase in State shared revenues by approximately $72,747.00. Additionally the value of State Board Account investments increased, therefore, the City's investment income was up by $18,950.00. Total expenses decreased by $160,625.00 due primarily to the reduction or end of several grants, which was then offset by higher public safety, transportation, economic development, and general services costs. The highlights noted for the General Fund was the decrease in expenses. The budgeted revenue versus the actual increased by $216,650.00. The budgeted expenditures versus the actual decreased by $127,756.00. Reviewing the Capital Assets and Long -Term Liabilities highlights show the investment in capital assets of $7,940,985.00 which includes land, building, improvements, equipment and construction in progress. The net capital asset balance increased to $270,646.00. I I �. - r _., m „�.�.n�,�'.e..,,..�_., .�`�.:._,,.�`��,, .. �L�.",�'�'°�'�.`'�"'w...,,.�" i'.,Yw..-'��_�._...-,..�.,^'r.ox.'"",�� ..--.,..x;".'"�,.�''�:r��"� ._,.r..-.. .,, __. ..k..,r,.... ..._.. .�.::.._ ,:. x ._., .._....,_ _:3 .,.�,.�=—.� „., ,..., . ... ._. VII. NEW BUSINESS CONTINUED C. Discuss FYE 2014 Audit/Financial Report - Carr, Riggs, & Ingram, LLC Major additions of $1,092,390.00 included the following: replacing four computers and one tablet in the Police continued. Department; replacement of windows for the Police Department and the Chamber of Commerce building; renovations to upgrade the kitchen at City Hall; purchase of 13 police vehicles including equipment; replacement of Firefighters bunker gear; various equipment for Fire and Public Works Departments. The list of capital assets continues: purchase of mobile vehicle radio for Public Works; 12 trash receptacles; various infrastructure improvements including State Road 70 roadway improvement, Taylor Creek Canal (stormwater retrofit) and sidewalk improvements; construction in progress for U.S. Highway 441/State Road 70 crosswalks. These additions were offset by a depreciation expense of $542,457.00, and disposal of the 13 police vehicles previously mentioned. Mr. Hoyman reviewed the Police Officers and Firefighters defined benefits pension plans, whose separate audit information was included. However, the General Employees/OUA plan was not provided in sufficient time to incorporate the information. Members of the Police Officers and Firefighters Plan contribute 5 percent of their covered annual salary, the City is required to contribute an amount equal to the difference in each year between the total aggregate member contributions for the year, plus the state contributions, and the normal cost for the year, as shown by the most recent actuarial valuation of the plan. For this Fiscal Year, the City's contributions were 21.97 percent for the Police Officers Plan, and 15.69 percent for the Firefighters Plan. The City has one of the best funded ratios of all their clients, with the Police Officers funded ratio at 102.1 percent and the Firefighters at 101.8 percent. Projections for the City General/OUA fund were not provided. Administrator Whitehall offered he received the report earlier today and would distribute a copy to the Mayor, Council, and staff later in the week. The audit report also reflects information on economic factors and next year's budget. The current Fiscal Year adopted millage rate is 7.7432, which is one percent of the roll -back rate and will generate an estimated $10,495.00 increase in ad valorem revenues. The adopted budget revenues are approximately $6,030,625.00, a projected decrease of $20,400.00 from the prior year. The change in revenue is based mostly on the expected decrease in grant funds for economic development. The adopted budget expenditures are $8,001,540.00, a projected increase of $195,463.00, than two percent more from last year, based mostly on the increase in grant expenditures. This year, an Independent Accountants' Report on Compliance with Local Government Investment Policies was added which implied, the auditors' examination, on a test basis, was conducted in accordance with standards established by the American Institute of Certified Public Accountants, and in compliance with the requirements of Section 218.415 of the Florida Statutes. Their findings were that the City was in compliance of all requirements. The Council thanked Mr. Hoyman and Mr. Taldi for the report and added their appreciation to City Staff as well. No official action was necessary for this item. .TUNE 2.2015 - REGULAR MEETING - PAGE 5 OF 6 415 VII. NEW BUSINESS CONTINUED D. Discuss placement of the previously discussed Leadership Okeechobee sign in City Hall Park Park - Noel Stephen and Frank DeCarlo (Exhibit 2). D. Motion to approve a Voting Delegate for the 2015 FLC Annual Conference - City Administrator (Exhibit 3). E. Motion to adopt proposed Resolution No. 2015-02, approving the Florida Department of Transportation (FDOT) Traffic Signal Maintenance and Compensation Agreement - City Administrator (Exhibit 4). The Council approved on December 16, 2014, a request by the Okeechobee Chamber of Commerce Leadership Team to erect a civic organizational sign within Park P of FLAGLER PARKS (City Hall Park), on the conditions that the location be coordinated with Staff; the color scheme, design, and construction coordinate with the final product of the FDOT Roadway Improvements; and lamp posts coordinate with those in the park; and the exact rendering be brought back for final approval by the City Council. Mr. Noel Stephen addressed the Council to explain the Leadership Team would like to withdraw the previous design concept and use in place of it, the same design as the "Welcome to the City of Okeechobee" signs. The Council agreed with the simpler and consistent design. Mayor Kirk authorized the Okeechobee Chamber of Commerce Leadership Team to move forward and to coordinate with Public Works Director Allen for any requirements and placement of the sign as previously approved. The matter will come back for a final presentation. The Florida League of Cities has requested a formal designation of one official to be the voting delegate, to cast votes during the Annual Conference to be held August 13 through 15. Council Member Chandler moved to appoint Mayor Kirk as the City's Voting Delegate for the 2015 Florida League of Cities Annual Conference; seconded by Council Member Ritter. VOTE: KIRK — YEA CHANDLER — YEA O'CONNOR — YEA RITTER — YEA WATFORD — YEA MOTION CARRIED. Council Member Watford moved to adopt proposed Resolution No. 2015-02, approving the Florida Department of Transportation (FDOT) Traffic Signal Maintenance and Compensation Agreement; seconded by Council Member O'Connor. Attorney Cook read proposed Resolution No. 2015-02 by title only as follows: "A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA AUTHORIZING THE EXECUTION AND ACCEPTANCE OF A TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION; PROVIDING FOR CONFLICT, PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE." The adoption of this resolution and agreement replaces the current Traffic Signal Maintenance Agreement Contract No. AM978, dated May 6, 2014, as authorized by Resolution No. 2014-05. It regulates the responsibilities of traffic signals and equipment located at intersections on State Roads. The new agreement is for a period of up to 20 years and includes an opt -out clause. Exhibit A contains the inventory list of all items the City is being compensated for as the Maintenance Agency and a breakdown of the current years' compensation. JUNE 2, 2015 - REGULAR MEETING - PAGE 6 OF 6 VII. NEW BUSINESS CONTINUED F. Motion to adopt proposed Resolution No. 2015-02, approving the Florida Department of Transportation (FDOT) Traffic Signal Maintenance and Compensation Agreement continued. ADDED TO AGENDA: Item G. Approval for a 90-day extension of Workers Compensation for Fire Lieutenant Phil Conroy (Exhibit 5). Vlll. ADJOURN MEETING - Mayor Please take notice and be advised that when a person decides to appeal any decision made by the City Council with respect to any matter considered at this meeting, he/she may need to insure that a verbatim record of the proceeding is made, which record includes the testimony and evidence upon which the appeal is to be based. City Clerk m for the sole purpose of backup for official records of the Clerk. C` James E. Kirk, Mayor ATTEST: Lane Gamiotea, CMC, 01ty Clerk Exhibit B lists the proposed compensation for State Fiscal Years 2014 to 2020. The following is the breakdown compensation schedule effective July 1, 2015 through June 30, 2016, $3,040.00 each for South Parrott Avenue (State Road 15) at South 21 st Street, and at North Park Street (State Road 70); North Park Street at West 5th Avenue, at East 8th Avenue and at East loth Avenue; and $1,064.00 for North Park Street at East 3rd Avenue (Emergency Only). The total lump sum amount to be paid quarterly is $16,264.00. Director Allen commented he was very satisfied with the new agreement and method of maintenance. VOTE: KIRK — YEA CHANDLER — YEA O'CONNOR — YEA RITTER — YEA WATFORD — YEA MOTION CARRIED. Motion and second by Council Members O'Connor and Ritter to approve a 90-day extension of Workers' Compensation Supplemental Payment of 100 percent of salary for Fire Lieutenant Phil Conroy, from June 7, 2015 to September 5, 2015, or until he is released to return to duty. Lieutenant Conroy continues to recover from an on-the-job injury that took place on December 8, 2014. The initial 90 calendar days was fulfilled on March 8, 2015. It was requested, and the Council approved a 90-day additional extension, which will be fulfilled on June 6, 2015. Should he return to full working capacity prior to September 5, 2015, the benefit will end. VOTE: KIRK — YEA CHANDLER — YEA O'CONNOR — YEA RITTER — YEA WATFORD — YEA MOTION CARRIED. There being no further discussion, nor items on the agenda, Mayor Kirk adjourned the meeting at 8:03 p.m. The next regular scheduled meeting is June 16, 2015. iM ANDEPENDENT NEWSIMEDIA INC. USA Okeechobee News 107 SW 17th Street, Suite D Okeechobee, Florida 34974 863-763-3134 STATE OF FLORIDA 6-2-15m(hwk COUNTY OF OKEECHOBEE csft Before the undersigned authority personally appeared Katrina Elsken, who on oath says she is the Publisher of the Okeechobee News, a three times a week Newspaper published at Okeechobee, in Okeechobee County, Florida, that the attached copy of advertisement being a h�� ol O' in the matter of in the 19th Judicial District of the Circuit Court of Okeechobee County, Florida, was published in said newspaper in the issues of Affiant further says that the said Okeechobee News is a newspaper published at Okeechobee, in said Okeechobee County, Florida, and that said newspaper has heretofore been published continuously in said Okeechobee County, Florida each week and has been entered as second class mail matter at the post office in Okeechobee, in said Okeechobee County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement, and afliant further says that, she has neither paid nor promised any person, firm or corporation any discount, rebate) commission or refund for the purpose of securing this advert i •emtnt for publication in the said newspaper. Katrina Elsken Sworn to and sbti scribed be ore me this day of — AD Notary Public, State of Florida at Large a , yi' eG'• ANC,IE BRIDGES MY COMMISSION # EE 177653 3•, 7 EXPIRES: April 20, 2016 s.7;pF Bonded Thnt NotaryPublic Underwr ters PUBLIC NOTICE CITY COUNCIL MEETING IS HEREBY GIVEN that the Cty Council for the'City of Okeecho- conduct aregular meeting on Tues, ]un 2, 2035, 6 PM, or as real,,, as possible, at City Hall, 55 SE 3rd Ave, Rm 110, Okeecho- The public is Invited and encouraged to attend. The agenda may led from cityofokeechobee.mm or by calling the Office of the City ator, 863-763-3372 x212. ANY PERSON DECIDING TO APPEAL any decision made by the City Council with respect � any matter considered at this meeting will need to ensure a verbatim record of the proceeding is made and the record includes the testimony and evidence upon which the appeal will be based. In accor- dance with the Americans with Disabilities Act (ADA), any person with a disabil ty as defined by the ADA, that needs special accommodation to par- ticipate in this proceeding, contact the City Cerk's Office no later than two business days prior to proceeding, 863-763-3372. BE ADVISED that should you Intend to show any document, picture, video or items to the Council in support or oppos ,ion to any Rem on the agenda; a coof the document, picture, video, ar item MUST be provided to the City Clerk for the Cityls records. By: Mayor James E. Kirk Clerk lane Gamiotea, CMC 4712 ON 5/29/2015 0 CITY OF OKEECHOBEE JUNE2)2015 55 SE 3RD AVENUE * COUNCIL CHAMBERS * OKEECHOBEE, FL 34974 REGULAR CITY COUNCIL MEETING Owl Nmeeiinq Sp tit endw-ied I. CALL TO ORDER - MAYOR: June 2, 2015, City Council Regular Meeting, 6:00 p.m. OFFICIAL AGENDA II. OPENING CEREMONIES: Invocation given by Nancy Vaughan, First United Methodist Church; Pledge of Allegiance led by Mayor. III. MAYOR, COUNCIL MEMBERS, AND STAFF ATTENDANCE - City Clerk Mayor James E. Kirk vo'- Council Member Noel Chandler ✓ Council Member Mike O'Connor✓ Council Member Gary Ritter,. -- Council Member Dowling R. Watford, Jr ✓ City Administrator Brian Whitehall,-,' �k,4 City Attorney John R. Cook✓' City Clerk Lane Gamiotea v,`� Deputy Clerk Melisa Jahner ,/ Police Chief Denny Davis Fire Chief Herb Smith ;/ Public Works Director David Allen IV. AGENDA - Mayor at-4 et, C e ) A. Requests for the addition, deferral or withdrawal of items on today's agenda. a � 6- Cz- - W,e, (�-q 5) PAGE 1 OF 2 June 2. 2015 PAGE 2 OF 2 V. PRESENTATIONS AND PROCLAMATIONS - Mayor g G1 GbZGR A. Present a 10-Year Longevity Service Award to Administrator Brian Whitehall. B. Present a 10-Year Longevity Service Award to Fred Sterling. (' v. VI. MINUTES - City Clerk V A. Motion to dispense with the reading and approve the Summary of Council Action for the May 19, 2015 Regular Meeting. VII. NEW BUSINESS A. Presentation and discussion regarding the City of Fellsmere's experience with a CRA and a TIF District - Jason Nunemaker, Fellsmere City Manager. B. Discussion regarding CRA improvements in the City of Okeechobee Downtown Parks - Shade Turgeon, Okeechobee Main Street - (Exhibit 1). C. Discuss FYE 2015 Audit/Financial Report - Carr, Riggs, & Ingram, LLC. D. Discuss placement of the previously discussed Leadership Okeechobee sign in City Hall Park - Noel Stephen and Frank DeCarlo (Exhibit 2). E. Motion to approve a Voting Delegate for the 2015 FLC Annual Conference - City Administrator (Exhibit 3). F. Motion to adopt proposed Resolution No. 2015-02, approving an FDOT Traffic Signal Maintenance and Compensation Agreement - City Administrator (Exhibit 4). VIII. ADJOURN MEETING C� PLEASE TAKE NOTICE AND BE ADVISED that if any person desires to appeal any decision made by the City Council with respect to any matter considered at this proceeding, such interested person will need a record of the proceeding, and for such purpose may need to ensure a verbatim record of the proceeding is made, which record includes the testimony and evidence upon which the appeal is to be based. City Clerk tapes are for the sole purpose of backup for official records of the Clerk. - — - In accordance with the Americans with Disabilities Act (ADA), any person with a disability as defined by the ADA, that needs special accommodation to participate in this proceeding, contact the City Clerk's Office no later than two business days prior to proceeding, 863-763-3372. BE ADVISED that should you intend to show any document, picture, video or items to the Council in support or opposition to any item on the agenda; a copy of the document, picture, video, or item must be provided to the City Clerk for the City's records r�,1 C/�ckhrr. 1 -�3 Oki - ems ' -max- 0-7 ti� Lii�i LQ�f lt4 � PA C j u L= 0 Fla PW- Wilt VL r � LAU Pit, - z Tpi K U-P � -ca dA"O Y-Zli av'o - Cf-�� /�C a oar v c't C Ot '-/Y 6 k,e i dte-X-j It 1 ," i A, WW -/w) LIA ILAt Ou 6tt r-lu 160 - PZ) m alla, 7'6 0 CITY OF OKEECHOBEE .TUNE 29 2015 REGULAR CITY COUNCIL MEETING 55 SE 3RD AVENUE * COUNCIL CHAMBERS * OKEECHOBEE, FL 34974 SUMMARY OF COUNCIL ACTION I. CALL TO ORDER — Mayor June 2, 2015, City Council Regular Meeting, 6:00 P.M. II. OPENING CEREMONIES Invocation to be given by the Director of Children's Ministry, Nancy Vaughan, First United Methodist Church; Pledge of Allegiance led by Mayor Kirk. III. MAYOR, COUNCIL AND STAFF ATTENDANCE - City Clerk Mayor James E. Kirk Council Member Noel A. Chandler Council Member Mike O'Connor Council Member Gary Ritter Council Member Dowling R. Watford, Jr. City Administrator Brian Whitehall City Attorney John R. Cook City Clerk Lane Gamiotea Deputy Clerk Melisa Jahner Police Chief Denny Davis Fire Chief Herb Smith Public Works Director David Allen IV. AGENDA - Mayor A. Requests for the addition, deferral or withdrawal of items on today's agenda. V. PRESENTATIONS AND PROCLAMATIONS A. Present a 10-Year Longevity Service Award to Administrator Brian Whitehall. PAGE 1 OF Mayor Kirk called the June 2, 2015, Regular City Council Meeting to order at 6:00 P.M. The invocation was offered by Nancy Vaughan, First United Methodist Church, Director of Children's Ministry; the Pledge of Allegiance was led by Mayor Kirk. w7 ttu- City Clerk Gamiotea called the roll: Present Present Present Present Present Present Present Present Present Present Present Present m �7j Yt'r Gt� Mayor Kirk as ed whether there wer�any requests for the addition, deferral or withdrawal of items on today's agenda. Addew�usiness item G, Exhbit 5. City Administrator Brian Whitehall was recognized by Mayor Kirk for his ten years of longevity service. He was presented with leather portfolio embossed with his name and years of service engraved; and a framed Certificate which read `1n Recognition of your 10-years of Service Hard Work, and Dedication to the City its citize s, and your fellow employees, from June 1, 2005, to June 2015." add C� �a� Sa I d G�c�f 5 c,<�C e ��a� �aA C Cl A0 lay lwl-- �VV046#td -11<fxf u7Cj .TUNE 2, 2015 - REGULAR MEETING - PAGE 2 OF PRESENTATIONS AND PROCLAMATIONS CONTINUED Present a 10-Year Longevity Service Award to Fred Sterling. MINUTES - City Clerk Motion to dispense with the reading and approve the Summary of Council Action for the May 19, 2015, Regular Meeting. E VII. NEW BUSINESS A. Presentation and discussion regarding the City of Fellsmere's experience with a CRA and a TIF District - Jason Nunemaker, Fellsmere City Manager. E Code Enforcement Officer Fred Sterling was recognized by Chief Smith and Mayor Kirk for his ten years of longevity service. He was presented with a leather portfolio with his name and years of service embossed; ano a framed Certificate which read: "In Recognition of your 10-years of Service, Hard Work, and Dedication to the City its citizens, and your fellow employees, from May 27, 2005, to May 27, 2015." LAB Motion and second by Council Members O'Conner and Chandler to dispense with the reading and approve the Summary of Council Action for the May 19, 2015, Regular Meeting. There was no discussion„ow � ku) L-4eAA r VOTE: KIRK - YEA CHANDLER - YEA O'CONNOR - YEA RITTER - YEA WATFORD - YEA MOTION CARRIED. Jason Nwiemake FeLgD m City�r It is only as effective as vour vision �1Ne've learned from the Small town environment, six square -ough the citrus industry. First city to allow women to vote south of the mason Dixon line. Diverse city, language is a challenge. Odd lot lay out. 100 year old infrastructure. Substantial number of dirt roads. Code enforcement issues, vacant land and buildings. They made this a priority. We had to educate the public on the laws. Implement a plan and stick with it. Strengthen existing businesses, aggressive annexation policy. Grants, we always have the maximum number of applications submitted each year and awarded of FRDAP applications. CDBG, LWCF, FRDAP, DCA, line item appropriation, division of forestry, division of ??? Partnership. Indian River County BOCC, Indian River County School Board Oculina bank, chambers of commerce aquaculture, TNEC, ALF. Utilities. CRA. City manager as Executive Director, focus on putting $$ back into community facade improvement grants infrastructure improvement grants, farmers market, community gardens, festival support. Planning efforts: PACE -EH, SDAT, YOURTOWN. Sometimes 'ust enough will get a local shareholder. Smart Incentives. Eco-tourism. Gentrification or displacement, don't get into Administrative Review — form based code. Staged implementation for improvements. a-ga a an in ras ruc ire grants. You get a lot of bang for your buck to help local businesses expand. Community gardens funded installation of pumps and water. Surplus property to use by the community for their benefit. TIF rebate program for Zbusinesses to come. Its flexible. Watford, biggest thing i kee con ro of the ro ram Create a Ian You can do this all inhouse, better to hire a consultant to make sure the basics and frame work is done correctly. Resources available to you. Brian use any of the TIF for infrasture? Not a lot, median work. Mostly to throw a bone for water or wastewater connections a check or incur debt to brinq as certain business to town miles. They wanted economic e commun .TUNE 2, 2015 - REGULAR MEETING - PAGE 3 OF VII. NEW BUSINESS CONTINUED A. Presentation and discussion regarding the City of Fellsmere's experience with a TIF 101, money will flow to the TIF fund first not the general fund. Resist�theurge to make the whole city the TIF CRA and a TIF District district. Gary you talked about CRA nd the redevelopment plan. The first step prior to that? A vision a mission? Is is what we want to see for the communit and said thisls t e direction we want to go inj a prioritizatPen The vi Win the council established at the beginning and how they wanted us to grow w a e starte . throug Pr How long did it take you to come up with the vision an was it painless? Yes, small town is easier as peo a are more candid. With at least a year we were up and running the vision lead the entire way. E E .TUNE 2, 2015 - REGULAR MEETING - PAGE 4 OF E E VII. NEW BUSINESS CONTINUED B. Discussion regarding CRA improvements in the City of Okeechobee Downtown Parks - Sharie Turgeon, Okeechobee Main Street - (Exhibit 1). OF] The topic of implementing a Community Redevelopment Area (CRA) project was introduced by Okeechobee Main Street (OKMS) Executive Director Shade Turgeon on May 5, 2015. The item was to be brought back once Mr. Nunemaker could educate the City Council on the pros and cons of a CRA, which was the previous item. Maureen Burroughs, President of OKMS, went down to all the businesses within the downtown. Surprised about the number Forma committee to what we can do down there. Landscaping, engineering, artist. Design area and each park be a differettt hope. Do one park at a time. Working on a grant to do artwork. Is the city going to put a bo line of the money said -aside. The money from FDOT to put the landscaping back within the park. They don't want trees, -on the perimeter. OKMS has been a great partner and appreciate at they do for the community. I think we're ih- time where we need to come up with. Had requests to stuff in the park, some have been approved, some have,not. Up to this point with the votes taken the ncil is not a big proponent to putting things in the park. That's no%to_say we don't want to put nothing in park. And this is probably the time to do it, to see what the majority of the pezlp.ie wanZ we put' ere. Also think it ties in with the discussion with the-Cio what you want the city to look like. And that would include the street scapes, parks and so forus piece meal sections to look at. Think it needs to be done in a comprehensive way. Only done a time. Need to look at the whole process and I think the CRA is the way to go. Not sure if we are qut. Government works very slowly. Whole process could be done at the same time and I think OKI8 needs to be a'pert of the process. Cook FDOT money is for replacing th fees and landscaping of the med�s. They part can be tied into a full plan overall. OKMS can get with us to p. Chandler think we need to ogether and make some changes. We need input tram the downtown businesses. Gary think were on the ' ht track, agree with Watford. And now Chandler is agreeinj-r,With it. One of the things I Zlly ' to see a facilitator that has some knowledge to help direct us and ' d of tease out ideas ses want, that would be a good consideration. OKMS has ideas to include. He us see the forest trees.before. Recall the idea ever gets the property where Carquest Auto Parts is and do a park if I ything done to have that is my dream. Court house plaza plan is still there. Brian what does a city council feel like OKMS spear headin what they were referring to earlier? What them working on that and then we could look at the bli ht and TIF are No just a punch list but gathering ideas from the business community. Put in c a e and then host a workshop we could all go through it. David it on that committee as the City's liaison. David like the holistic approach, not 'just the trees in the parks. Watford agree with the process, need more input than one staff erso MS can continue their fact fin Ing research an collect the data. Inevability I wi a come toward the CRA. Mayor you just need to more forward the direction you are going. .TUNE 2, 2015 - REGULAR MEETING - PAGE 5 OF VII. NEW BUSINESS CONTINUED C. Discuss FYE 2015 Audit/Financial Report - Carr, Riggs, & Ingram, LLC. �Vk*m The presentation of the City's Financial ement (Audit Report), Fiscal Year October 1, 2013, through September 30, 2014, was given by Mr.Afith Carr, Riggs & Ingram, LLC. Prior to the meeting, copies of the report were distributed to the Mayor and Council. The independent audit report reflects there were no compliance issues and the City is in a secure financial position, with total assets being $18,764,230.00. The total net position decreased from 2013 by $206,452.00. This was due to a $37,167.00 increase in total assets, and a $243,619.00 increase of total liabilities and deferred inflows. The increase in total assets was a result of a $270,646.00 increase in capital assets offset by a $233,479.00 decrease in current and other assets. The increase in total liabilities was due to a $203,901 increase of noncurrent liabilities, mainly caused by increases in the net Other Post Employment Benefits (OPEB) obligation. The net change in current and noncurrent liabilities was $239,189.00 as current liabilities increased by $35,288.00 related to the timing of payables. Mode explained the Fund Balance Categories and amounts, total revenues increased by less than 1 percent to $6,120,000.00 primarily due to a $114,403.00 increase in general revenues and is offset by a $91,587 decrease in cpatila grants funded by the CDBG program. The Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual for General Fund reports: Final Budgeted Revenues at $5,439,907.00, compared to actual being $5,543,410.00, an increase of $103,503.00, Final Budgeted Expenditures at $6,238,772.00, compared to actual being $5,668,793.00, spending $569,976.00 less than budgeted. This was largely contributed to the overall decrease in general government expenses, fire and police public safety expenses, and transportation expenses. Reviewing the Capital Assets and Long -Term Liabilities shows the investment in capital assets of $7,670,339.00 which includes land, building, improvements, equipment and construction in progress. The net asset balance decreased by $364,717.00. Major additions of $473,743.00 included computers, Public Works Director office renovations; Police vehicles and equipment; Firefighters bunker gear; Bush -hog mower; and various infrastructure improvements. JUNE 2, 2015 - REGULAR MEETING - PAGE 6 OF VII. NEW BUSINESS CONTINUED C. Discuss FYE 2015 Audit/Financial Report continued. E C However, these were offset by depreciation expense of $533,233.00 and dis sal of the 14 police cars previously mentioned. Ms. Goode th turned to the breakdown of the threvPension Trust Funds: Police Officers, Firefighters and General/OUA Employees, which are defined be s plans. The Plans are audited by a separate firm who then provides the information to the City. Members of the Police Officers and Fi Ighters P n contribute 5 percent of their covered annual salary, the City is required to contribute an amount equa a difference in each year between the total aggregate member contributions for the year, plus the st co ributions, and the normal cost for the year, as shown by the most recent actuarial valuation of the n. For this iscal Year, the City's contributions were 17.59 percent for the Police Officers Plan, and 11.8 percent for the Fi fighters Plan. The City General/OUA Employees contribute 6 percent of their covered ual salary. The City is uired to contribute at an actuarially determined rate, this Fiscal Year's rate wa .19 percent. The Pension Fun are in good shape, the City has one of the best funded ratio's of all their ents, with 85 percent being the target, Police Officers funded ratio is at 98.5 percent and the Firefight is at 101.7 percent. Projections for the City General/OUA fund were not provided. - - - - -. - - - --- ............. - • • Me • - • - • 1 1 1 • - • • ; • • ' - i 7 The audit report also reflects information on economic factors and next year's budget. The current Fiscal Year adopted millage rate is 7.7432, which is .03 percent less than the roll -back rate and will generate an estimated $42,648.00 less in ad valorem revenue than the previous Fiscal Year. The adopted budget revenues are �-' approximately $8,423,558.00, a projected increase of $829,551.00 from the prior year. The total budgeted expenditures are $5,621,007.00, a projected increase of $342,169.00 more than the prior budget year. \ R S%9r , lam` o�_ qrgN(8 -�U'\0,kkClo_Q POSt-1 t0x 0* act he Council thanked 4r G for the report and added their appreciation to City Staff as well. No official action was necessary for this item. .TUNE 2, 2015 - REGULAR MEETING - PAGE 7 OF VII. NEW BUSINESS CONTINUED D. Discuss placement of the previously discussed Leadership Okeechobee sign in The City Council approved a request by the Okeechobee Chamber of Commerce Leadership Team to erect a civic City Hall Park - Noel Stephen and Frank DeCarlo (Exhibit 2). organizational sign December 16, 2014, within Park P of FLAGLER PARK (City Hall Park), on the conditions that the location be coordinated with Staff; the color scheme and design coordinate the final product of the FDOT Roadway Improvements; that it not be erected until the current roadway improvement project be complete; lamp post coordinate with those in the park; the exact rendering be brought back for final approval by the City Council. Proposed to use the same format as the welcome to city signs to use as the civic sign to post on city hall park. Watford like that. Gary its consistent. Kirk, we like it. Authorized to work with David for a location. Proceed and and look forward to the final. C DUNE 2, 2015 - REGULAR MEETING - PAGE 8 OF VII. NEW BUSINESS CONTINUED �--- E. Motion to approve a Voting Delegate for the 2015 FLC Annual Conference - City Administrator (Exhibit 3). E C The Florida League of Cities has requested a formal designation of one official to be the voting delegate, to cast votes during the Annual Conference to be held August 13-15. Council Member Chandler moved to approve Mayor Kirk as a Voting Delegate for the 2015 Florida League of Cities Annual Conference; seconded by Council Member Ritter KIRK - YEA RITTER - YEA VOTE: CHANDLER - YEA O'CONNOR - YEA WATFORD - YEA MOTION CARRIED. MAY 19, 2015 - REGULAR MEETING - PAGE 9 OF VII. NEW BUSINESS CONTINUED F. Motion to adopt proposed Resolution No. 2015-02, approving an FDOT Traffic Signal Maintenance and Compensation Agreement - City Administrator (Exhibit 4). Council Member Watford moved to adopt proposed Resolution No. 2015-02, approving an FDOT Traffic Signal Maintenance and Compensation Agreement; seconded by Council Member O'Connor. Attorney Cook read proposed Resolution No. 2015-02 by title only as follows; "A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA AUTHORIZING THE EXECUTION AND ACCEPTANCE OF A TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE." The new agreement is for a period of up to 20 years, effective July 1, 2015. Exhibits akd)g�will be reviewed and executive annually by the Public Works Director. Exhibit A contains the inventory list of all items the City is being compensated for and a breakdown of the current years compensation. Exhibit B lists the proposed compensation for Fiscal Years 2014 to 2020. Traffic signals at SR 15/US98 and SR 15/Walmart SR15/US98 and SR 70/SR 700/US 98 SR70 and NW 5th Ave SR70 and SE 31d Avenue Emergency/Fire Department SR 70 and SE 8th Avenue SR 70 and SE 101h Avenue, total of $16,264.00 iV us an opt out on this agreement VOTE: KIRK - YEA CHANDLER - YEA O'CONNOR - YEA RITTER - YEA WATFORD - YEA MOTION CARRIED. Council Member O'Connor moved to approve a 90-day extension of workers compensation benefits to Fire Lieutenant Phil Conroy, from Voting Delegate for the 2015 Florida League of Cities Annual Conference; seconded by Council Member Ritter. VOTE: KIRK - YEA CHANDLER - YEA O'CONNOR - YEA RITTER - YEA WATFORD - YEA MOTION CARRIED. 0 E VIII. ADJOURN MEETING - Mayor Please take notice and be advised that when a person decides to appeal any decision made by the City Council with respect to any matter considered at this meeting, he/she may need to insure that a verbatim record of the proceeding is made, which record includes the testimony and evidence upon which the appeal is to be based. City Clerk media are for the sole purpose of backup for official records of the Clerk. ATTEST: Lane Gamiotea, CIVIC, City Clerk James E. Kirk, Mayor MAY 19, 2015 - REGULAR MEETING - PAGE 10 OF MAY 19, 2015 - REGULAR MEETING - PAGE 11 OF There being no further discussion nor items on the agenda, Mayor Kirk adjourned the meeting at 8:03 p.m. The next regular scheduled meeting is June 16, 2015. •`-.♦ .'� id �� ••��•, � ♦ i1 e� :.•.�� . ��i :•s. ��. %•�O• :ice•:" ♦ � O•` ♦ � O.•`:•\ !i• t u; ♦ fij:��.. ♦. i�' •� i/e':♦.,�.: i' � r' 0,... ♦:`�� ii �-= i'%:♦ ♦ ,�ii 1i� \. �,.�'��„��;; IN; -`I,♦., ; ; :�: •a•; e,� H � ;-�'•4.-.:- j �•: •.`�:d�s:l ��L-`q,..,: •..i ;?:•:�..;.�,��i� �;1,�.`I%;I'♦,; •.-:.;,•. Pv,'�nd�� `��I♦.; �::.- - .;. ",.� �♦.. \apf al► ,♦ ;. t'� jo. �♦1... �./ al�.�o♦ ;, �` I`: ♦o, ��/!Iq ullaa�. ♦ .;•♦1 ♦`.. ♦ /nu lun— o♦ ..,G iy`.,. ♦o.I/.w lull ,►ii:♦ .,�♦� Ii'C. ♦••�/nu un ,ti_ `�� ,•-"�iUuln'i�.:/,�i/�' �� i I N"�'IiUtiini'' •iiy"%.'� `' ! � v�• Ivt.• �\II\ )/11\� Iiii� •.; ` /� � ;I`�\.� �\II\ 1I11\� I�,� %i'� 1 �• I`vv`��Sl/1\t 1!U\� .i ♦ I • I`;`,•��l1it_Jil „uuip� ♦;, . �,qum.- ♦;,, • mum.• '♦%'� , ,;,•y;� ��►� l��liiuill �ti:=-=->�� i��i�t ►.::=:..� /f�u�1� ►.,'..=::.� I1i�111��11►.gall 'i1��._ ■_ri: � :71Uhn`KI 7, tt";:,IrkIn Recognition of your 10-Years rn,�•e f \ ` ♦ f \: i ♦ � a'711\�. ♦ / 1 \ ♦ ' Ilif+'all\i...,a j•� �l ► \ 1!�• ' ♦ I \� :'s ♦ ��s 1. t. 1.� ' I �, L� ,- ♦ �\II/ itUl� v I . � \ �, i� •.,.-." �.•� `. i j=:, :'ice.,.._.� ♦i,` ri'�. ;n �. ��.�� .•�i. i /�_:• _.�_ '..fT/it`.Qi ��+ ram•. •.!�-..:•�%••: ��\ r ff City of Okeechobee May 27, 2015 Mr. BrianWhitehall 1933 SE 30th Street Okeechobee, FL 34972 Q.al Dear Mr. Whit I: Office of the Cit Clerk (�- 2-15 InLo Z+em-V- it - Time sure does fly when you are having fun! Can you believe it has been 10 years since you first became a member of the "City Family." At this milestone the Mayor and Council would like to take time during the June 2, 2015 meeting to recognize your contributions to the City. A presentation is being scheduled at the very start of the meeting, which begins at 6:00 p.m., to extend to you a longevity service certificate and award. As a way, of saying "Thank You" to our employees for their dedication, I would also like to point out that by reaching this milestone, there will be changes to your benefits. Beginning this month, your annual leave accrual will increase to 10 hours per month and 50 percent of your sick leave balance is eligible as a paid benefit, so long as separation with employment is on good terms. You have met the number of years of service that Education Reimbursement Contracts are no longer required. It is an honor for me to have the opportunity, along with the Mayor and Council, to offer a most sincere, "Congratulations, for a job well done." May there be several more years to come. Should a scheduling conflict arise, please call my office, 763-3372 ext. 215. We will be sure and give you a reminder call the day of the meeting. Feel free to invite family members and friends so that they too, may share in this occasion. Sincerely, 6* Lane Gawdlutea, CIVIC City Clerk/Personnel Director LG/mj Ecopy: Mayor Kirk, and Council Members, Chandler, O'Connor, Ritter and Watford City Attorney Cook 55 S.E. Third Avenue • Okeechobee, Florida 34974-2903 • (863) 763-3372 • Fax: (863) 763-1686 -i r • � �:f�:�.-i � , � .+.+:i �"l::`. I s . � :•:+7 �r "' I n : ��ii•\Ii '�,::.:�� i i �� r-.g/- - --� .•ii i�,�` �; •�♦':: _ :!��J��•I'f ii ��,lr� `��.:.; : ., �1 Ptt. � u i � rrii: ��'. ♦� �+�J"�ii i.- i •�♦�%' � .� ? �, �/��'. � . � .`�: : 1+i� m uu `; �1i i�•, aI n+ �►�%'♦♦:.'l .',`�+II". /haul ait� W1,%'lt 'I Ia..I�,nU fu,r �1:; 'i �.Ij�o.Z��iiii iiit� ry♦♦� .t J,1I•a,Iiiin n11 w una ♦ � I . l"'Saw�uwt u• r ♦�., , : � .. ♦ uvt au , ♦ ♦ ' �� i I I +\ 1►JIp>•' ♦ �i' ♦ 'Rltlldr• ♦ r " t f/ .. I"•ti� rrr ♦ , �j - ♦ �rtl,t tlft sr ♦ +�r `t •�`` I" '�,flt! rllr f, `f ,r I.. C/ ♦ vtUlNa`n♦ SAW ' I, vn •tlulr e, �� A I`o,' �t►�r: ��Q� �� ` /lii� ►�Q� %��t, �IIi`.=...:.�t1, I�� t1 �fi"""` �� `l, l�i��. Ikli a 11 a Oki IN trAV, Ini'lN I a lk, 11 k Y i. � 1 - i � r, /..•,, .l �� .III .� r f ♦ ♦♦♦♦'r ,�1-iii ii�il�."�1I � � � • r ! � : ♦� i `r. ,fr Loral'+ ♦ �i i SIR **No, City of Okeechobee Office of the City Clerk 6-2-15m(huU- May 27, 2015 --T-+em 6, Mr. Fred Sterling 1400 Southwest 44th Blvd Okeechobee, FL 34974 U'4,6( Dear Mr.. S g: Time sure does fly when you are having fun! Can you believe it has been 10 years since you first became a member of the "City Family." At this milestone the Mayor and Council would like to take time during the June 2, 2015, meeting to recognize your contributions to the City. A presentation is being scheduled at the very start of the meeting, which begins at 6:00 p.m., to extend to you a longevity service certificate and award. It is an honor for me to have the opportunity, along with the Mayor and Council, to offer a most sincere, "Congratulations, for a job well done." May there be several more years to come. Should a scheduling conflict arise, please call my office, 763-3372 ext. 215. We will be sure and give you a reminder call the day of the meeting. Feel free to invite family members and friends so that they too, may share in this occasion. Sincerely, Maw Lane G otea, CIVIC City Clerk/Personnel Director LG/mj Ecopy: Fire Chief Smith 55 S.E. Third Avenue • Okeechobee, Florida 34974-2903 • (863) 763-3372 • Fax: (863) 763-1686 Tf Lane Gamiotea From: Brian Whitehall <bhitehall@cityofokeechobee.com> Sent: Tuesday, May 19, 2015 8:22 AM To: Robin Brock ; 'Lane Gamiotea'; 'India Riedel'; 'City-Melisa Jahner'; Councilman Dowling Watford; Councilman Gary Ritter; Councilman Noel Chandler; Mayor Kirk Cc: 'Sharie Turgeon'; 'Maureen Burroughs'; 'Terry Burroughs' Subject: Fellsmere mgr to speak on CRAs Good morning - Just thought I would advise that Jason Nunemaker, Fellsmere Cty Mgr, plans to be at the June 2"d meeting to talk about the Fellsmere CRA. I went to the Fellsmere web site and under the Community Redevelopment link and then the Redevelopment link, there are several informative links, including: http://www. cityoffellsmere. or4/redevelopment. php The CRA Plan which incl the Plan, Blight study, Map Facade and infrastructure grant improvements Meeting agenda/minutes etc A quick review of all this info may give us some insight prior to his visit! Thanks! 6 111i/i, rr Brian Whitehall Administrator City of Okeechobee 55 SE 3rd Avenue Okeechobee, FL 34974 863-763-3372, Ext. 212 FAX: 863-763-1686 Email: bwhitehalIO-citvofokeechobee.com Website: http://www.cityofokeechobee.com NOTICE: Due to Florida's broad public record laws, this email may be subject to public disclosure. m :rym ) � -Armory Or �,j U3 i Pit T K 9) U CD CD co I71 4 I ®r. ki. 3 t wi i CD CD W-0 4 a r--1 O 4-4 oil I EN: OV " U ct • FD4 <"r 1 ^0 M—r • r"r Mom•+ • C• M—+ I W C4 D ^ �- L F..A • CD V P•r CD O :640- 04�Are mmmmmaw not woke, a U W h Ll 0 < � 1 r MCC - N C1 O F or = t —�— 0 ct 4� 4� O 4� ct ct r U c75 O W" u tb r ct • 3- J 0 r • r� 1� n r� CD CD • O � � O `J O r� (u C O V � I� CD CD OCD CD O C %c ^CD O CD CD CD CD N � � O• CD CfG cct c� 4� —4 ct U O N ^ U N s, VI �--� Oo Oo 4-4 r oc u o wi z � 0 LI :7 L7 70 b C� /� MA z m x "01w, Exhibit 1 June 2, 2015 CITY OF OKEECHOBEE (863) 763-3372 FAX (863) 763-1686 AGENDA ITEM REQUEST FORM PLEASE SUBMIT COMPLETED FORM TO: CITY ADMINISTRATOR'S OFFICE 55 SE 3Rd AVENUE OKEECHOBEE, FLORIDA 34.974 NAME: Sharie Turgeon ADDRESS: -55 S. Parrott Ave. _�1�e�ckRoh�e� Fl..-34974 - -- -- --- - -- -— TELEPHONE: 863_357-62446 FAX: MEETING: REGULAR 0 SPECIAL ❑ WORKSHOP ❑ DATE: PLEASE STATE THE ITEM YOU WISH TO HAVE PLACED ON THE CITY COUNCIL AGENDA: _ ReNis t_imp-ioN,enlent ideas-fl_om Maid Street for.Flagler P- i ------------ -------------------- PLEASE STATE W HAT DEPA RTM ENT(S) YO U H AVE WORKEDWITH: PLEASE STATE DESIRED ACTION BY THE CITY COUNCIL: Approval to work with Main Street to begin iin-Proveinents in the downtoiNm mrks_ PLEASE SUMMARIZE PERTINENT INFORMATION CONCERNING YOUR REQUEST AND ATTACH APPLICABLE DOCUMENTS: Materials will be made available by_Main Street at time of Council meeting___________ IF A PRESENTATION IS TO BE MADE1 PLEASE LIMIT THE TIME TO TEN MINUTES UNLESS OTHERWISE APPROVED BY THE MAYOR. SIGNED BY:1�--�--- 1 DATE:-- IN& RIGGS & CRIINGRAM CPAs and Advisors CRlcpa.com I hlog.cricpa.com City of Okeechobee, Florida Table of Contents For the year ended September 30, 2014 Introductory Section Title Page 1 Table of Contents 2 City Officials 3 Financial Section •" Independent Auditors' Report 5 Management's Discussion and Analysis 9 Basic Financial Statements Government -wide Financial Statements • Statement of Net Position - Governmental Activities 19 • Statement of Activities - Governmental Activities 20 Fund Financial Statements Governmental Funds • 'Balance Sheet 21 • 'Statement of Revenues, Expenditures and Changes in Fund Balances 22 • ',Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Fiduciary Funds (Component Units that are Fiduciary in Nature) • Statement of Fiduciary Net Position - Pension Trust Funds 24 • Statement of Changes in Fiduciary Net Position - Pension Trust Funds 25 Notes to Financial Statements 27 Required Supplementary Information Other Than Management's Discussion and Analysis • Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 51 +�+ • Required Pension Supplementary Information - Schedule of Funding Progress 52 • Required Other Postemployment Benefits Supplementary Information - Schedule of Funding Progress 53 •" • Notes to Required Supplementary Information 54 Reports on Internal Control and Compliance Matters go • Independent Auditors' Report on Internal Control Over Financial Reporting and on 55 Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards as • Independent Auditors' Management Letter 57 • Independent Accountants' Report on Compliance with Local Government 59 Investment Policies or • Affidavit of Impact Fee Compliance 61 -2- �.. NOVO ..r.... City of Okeechobee, Florida City Officials ' For the year ended September 30, 2014 James E. Kirk .. Mayor, Chairman Devin R Maxwell Dowling R. Watford, Jr. .� Clayton Williams Mike O'Connor Council Members John R. Cook am City Attorney "" Brian Whitehall City Administrator dw Lane Gamiotea City Clerk India Riedel Finance Director Herbert Smith Chief of Fire Denny Davis Chief of Police David Allen Director of Public Works -3- THIS PAGE IS INTENTIONALLY LEFT BLANK. -4- 71 ++ %e Cam, Riggs & Ingram, LLC C A R R 215 Baytree Drive kk R I G G S& Melbourne, Florida 32940 CRI ANEW 1 N G R A M (321) 255-0088 (321) 259-8648 (fax) CPAs and Advisors www.cncpa.com INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund and'',the aggregate remaining fund information of the City of Okeechobee, Florida, as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City of Okeechobee, Florida's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements 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. .w Auditors" Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Police Officers' and Firefighters' Pension Trust Funds and the City of Okeechobee and Okeechobee Utilities Authority Employees' Retirement System, which represent 100% of the assets, net position and additions of the pension trust fiduciary funds. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the Police Officers' and Firefighters' Pension Trust Funds and the City of Okeechobee and Okeechobee Utilities Authority Employees' Retirement System is based on the reports of the other auditors. 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 aw evaluating the overall presentation of the financial statements. -5- 71 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the City of Okeechobee, Florida, as of September 30, 2014, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 1 E. to the financial statements, the City implemented the provisions of GASB Statement 65, Items Previously Reported as Assets and Liabilities. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis (pages 9 through 16), the budgetary comparison information (page 51), and the pension and other postemployment benefits information (pages 52 through 54) 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Okeechobee, Florida's basic financial statements. The introductory section is presented for purposes of additional analysis and is not a required part of the financial statements. The introductory section has 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 it. rr **r.r %ft wl Other Reporting Required by Government Auditing Standards 4 In accordance with Government Auditing Standards, we have also issued our report dated May 26, 2015 on our consideration of the City of Okeechobee, Florida'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, 4" 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 of Okeechobee, Florida's internal control over financial reporting and "r compliance. Melbourne, Florida May 26, 2015 .. low -7- *4w "%w ft THIS PAGE IS INTENTIONALLY LEFT BLANK. 17 IE 711 AW City oYOkeechobee, Florida Management's Discussion and Analysis Our discussion and analysis of the City of Okeechobee, Florida's (the City's) financial performance provides an overview of the City's financial activities for the year ended September 30, 2014. Please read it in conjunction with the City's basic financial statements, which immediately follow this discussion. FINANCIAL HIGHLIGHTS The following are highlights of financial activity for the year ended September 30, 2014: • The City's total assets exceeded its liabilities at September 30, 2014 by $18,764,230. • The City's total revenues were $6,121,830 for the year ended September 30, 2014, compared to total expenses of $6,328,282, which resulted in a $206,452 decrease in net position. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial am statements. The basic financial statements are comprised of three components: 1) government - wide financial statements, 2) fund financial statements and 3) notes to basic financial statements. •"' A. Govetnment-Wide Financial Statements The government -wide financial statements, which consist of the following two 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 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. Over time, 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 Aw during the 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 Ao periods. The government -wide financial statements can be found on pages 19 and 20 of this report. B. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have ,,W been segregated for specific activities or objectives. The City's funds can be divided into two fund types: governmental funds and fiduciary funds. dw MGM C of Okeechobee, Florida Management's Discussion and Analysis B. Fund Financial Statements (Continued) 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 balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government's near - term financing requirements. 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 statement of revenues, expenditures and changes in fund balances provide reconciliations to facilitate this comparison between governmental funds and governmental activities. The basic governmental fund financial statements can be found on pages 21 through 23 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties" outside the government. 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 basic fiduciary fund financial statements can be found on pages 24 and 25 of this report. C. Notes to Basic Financial Statements The notes provide additional information that is essential for a full understanding of the data provided in the government -wide and fund financial statements. The notes to basic financial statements can be found on pages 27 through 47 of this report. -10- 17 0 City oYOkeechobee, Florida Management's Discussion and Analysis GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of financial position. The followingtable reflects the condensed government -wide statement of net position. City of Okeechobee Statement of Net Position ,. 2014 2013: Current and other assets $ 12,409,848 $ 12,643,327 Capital assets 7,940,985 7,670,339 Total assets 20,350,833 20,313,666 Current liabilities 355,696 * 320,408 Noncurrent liabilities 1,184,820 980,919 Total liabilities 1,540,516 1,301,327 Deferred inflows 46,087 * 41,657 Net position: Net investment in capital assets 7,940,985 7,670,339 Restricted 750,171 860,740 WW Unrestricted 10,073,074 10,439,603 Total net position $ 18,764,230 $ 18,970,682 dw Governmental Activities Total net -position decreased by $206,452)primarily as a result of a $37,167 increase in total assets, and a 243,619 increase of total liabilities and deferred inflows. The increase in total assets was primarily due to a $270,646 increase in capital assets offset by a $233,479 decrease in current and �• other assets. The increase in total liabilities was due to a $203,901 increase of noncurrent liabilities' due mainly to increases in the net OPEB obligation. The net change in current and noncurrent liabilities was $239,189 as current liabilities increased by $35,288 related to the'timing of payables. *Reclassed to be consistent with 2014 presentation. .. -11- AW Cof Okeechobee, Florida Management's Discussion and Analysis The following table shows condensed revenue and expense data: City of Okeechobee, Florida Statement of Activities 2014 2013 REVENUES: Program revenues: Charges for services $ 586,335 $ 609,205 Operating grants and contributions 742,240 729,829 ice; Capital grants and contributions 474,276 565,863 General revenues: Property taxes 1,771,380 1,786,371 rr Public utility taxes 775,701 776,493 Franchise fees 515,186 476,697 Shared revenues 1,194,111 1,121,364 Investment income and other 62,601 43,651 Total revenues 6,121,830 6,109,473 EXPENSES: General government 1,188,276 1,107,412 Public safety 3,450,010 3,302,097 Transportation 656,722 632,237 Physical environment 1,021,989 1,447,161 Economic development 11,285 - Total expenses 6,328,282 6,488,907 Change in net position (206,452) (379,434) Net position, beginning 18,970,682 19,350,116 Net position, ending $ 18,764,230 $ 18,970,682 The City experienced an increase of less than 1% in total revenues — a $12,357 increase to $6.12 million. The increase is primarily due to a $114,403 increase in general revenues and is offset by a $91,587 decrease in capital grants funded by the Small Cities Community Development Block Grant Program. A decrease in the assessed taxable values was the contributory factor in the reduction of property tax revenue of $14,991. Franchise Fee revenues increased $38,489 based on higher consumer paid utilities. The Shared Revenue for the State of Florida (SRS) increased approximately $72,747. The $18,950 increase in investment income is due primarily to an increase in the value of the State Board Account investment accounts. Total expenses decreased $160,625 due primarily to the reduction and the end of the rehabilitation grant and the economic grant and was offset by higher public safety costs, transportation costs, economic development costs and general services. r" -12- C City Okeechobee, Florida Management's Discussion and Analysis CAPITAL ASSETS AND LONG-TERM LIABILITIES Capital assets. The City's investment in capital assets as of September 30, 2014, amounted to $7,940,985 (net of accumulated depreciation). This investment in capital assets includes land, buildings,] improvements, equipment and construction in progress. During the year, the City's net capital asset balance increased $270,646. The City's major additions of $1,092,390 to capital assets during the current fiscal year included the following: „g • Replacement computers for (4)-Police Department, and (1) tablet for administration use .. • Replacement windows of Police Department and Chamber buildings • Renovations related to upgrading the City Hall kitchen • Replaced 13 police vehicles including equipment • Replacement bunker gear for firefighters • Various equipment for Public Works and the Fire Department • Replacement trucks within the Public Works Department • Mobile vehicle radio for Public Works • 12 trash receptacles r- W& • Various infrastructure improvements including the SR70 roadway improvement, Taylor Creek Canal (stormwater retrofit) and sidewalk improvements s. • Construction in progress — Highway 441/SR70 crosswalks These additions were offset by depreciation expense of $542,457, and disposals with a net book ab value of $279,287, which largely relates to the sale of 13 police vehicles. 0 -14- 6 ,�,., Cof Okeechobee, Florida Management's Discussion and Analysis FUND FINANCIAL ANALYSIS 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, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal to year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $11,432,851, a decrease of $253,348 in comparison with the prior year. Approximately 79.6% of this total amount $9,102,069, constitutes unassigned fund balance, which is available for spending at the government's discretion. Assigned fund balances include $1,110,541 for subsequent year's expenditures, $373,162 for future capital projects and $63,514 for future qualified impact fee expenditures. Public Facilities fund balance of $745,060 plus law enforcement $5,111 are restricted funds based on their specific stipulated purpose. The remainder of fund balance is non -spendable inventory of $32,764. The general fund is the chief operating fund of the City. At the end of the current fiscal year, assigned and unassigned fund balance of the general fund was $10,673,115 while total fund balance was $11,450,939. As a measure of the general fund's liquidity, it may be useful to compare both assigned and unassigned fund balance and total fund balance to total fund expenditures. The total assigned and unassigned fund balance and total fund balance represent approximately 177% and 190% respectively of total general fund expenditures. The community development and appropriations grant capital project funds, both major funds, had no fund balance. Revenues from grants were used in the construction of infrastructure and other improvements in the City. The FDOT grant capital project fund, a major fund, recorded a year-end fund balance deficit of $86,713. Additional information on the fund equity can be found in Note 1.D. on pages 33 and 34 of do this report. Revenues from the FDOT grant were used in the construction of infrastructure and other improvements to roadways, rights -of -way and medians in the City. General Fund Budgetary Highlights The amount appropriated for expenditures in the original 13/14 budget decreased from $6,788,857 r to $6,155,152 in the final 13/14 budget, a decrease of $633,705. The decrease in general government expenses, fire and police public safety expenses, physical environment expenses and transportation expenses largely contributed to the overall decrease in expenditures. to -13- AK RA - A. City Okeechobee, Florida Management's Discussion and Analysis City's Capital Assets (net of depreciation) 2014 2013 Land $ 1,378,744 $ 1,378,744 Construction in progress 72,114 - Buildings 1,145,751 1,158,562 Improvements other than buildings 4,285,758 4,023,525 Equipment 1,058,618 1,109, 508 Total S 7.940.985 S 7.670.339 Additional information on the City's capital assets can be found in Note 4.C. on page 38 of this l► report. Long-term Liabilities go City's Outstanding Debt Long-term Liabilities 2014 2013 .. Net OPEB obligation $ 811,717 $ 628,643 Compensated absences 373,103 352,276 Total $ 1,184,820 $ 980,919 The City's long-term liabilities increased by $203,901 during the current fiscal year. The largest .. contributing factor is the additional liability for the OPEB liability of $183,074. This is the fourth year of implementation of GASB 45, which caused the increase in Net OPEB liability. Additional information on the City's long-term debt can be found in Note 4.E. on page 39 of this report. AW ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City Council adopted a millage rate 7.7432 for budget year 2015. The adopted millage rate is �. less than 1% of the roll -back rate. A $10,495 increase in budgeted ad valorem revenue for the new year is due to new construction added to this years assessed tax rolls. Revenues for the fiscal year 2015 adopted budget for all funds of the City total approximately $6,030,625, a decrease from the prior year budget of approximately $20,400. These revenues include the General, Public Facility, Capital Projects and Special Law Enforcement fund revenues. The change in revenue is based mostly on the expected decrease in grant funds provided for economic development. -15- 4. CR7 of Okeechobee, Florida Management's Discussion and Analysis Expenditures for the fiscal year 2015 adopted budget for all funds of the City total approximately $8,001,540, an increase of less than 2%, $195,463 from the prior year budget. The increase in expenditures is based mostly on the increase in grant expenditures . REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Okeechobee's finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Okeechobee, 55 S.E. Third Avenue, Okeechobee, Florida 34974. 77 77 -16- +�r AW aw law BASIC FINANCIAL STATEMENTS a aw «w mo 40 aw a. Am ww -17- `ftw *"✓ rob THIS PAGE IS INTENTIONALLY LEFT BLANK. I" so .W September 30, 2014 ASSETS IMF � �R n _.....,� . City of Okeechobee, Florida Statement of Net Position - Governmental Activities Cash and cash equivalents $ 11,283,562 4' Accounts receivable 100,506 Due from other governments 417,802 Inventory 32,764 Overfunded pension costs 575,214 Capital', assets: Nondepreciable La nd 1,378,744 Construction in progress 72,114 Depreciable, net of accumulated depreciation Buildings 1,145,751 Improvements other than buildings 4,285,758 •• Equipment 1,058,618 Total assets 20,350,833 LIABILITIES Accounts payable 166,228 Accrued expenses 189,468 Noncurrent liabilities: Due within one year 155,500 Due in more than one year 1,029,320 <- low Total liabilities 1,540,516 DEFERRED INFLOWS OF RESOURCES Deferred revenue - business tax revenue 46,087 Total deferred inflows of resources 46,087 NET POSITION Net investment in capital assets 71940,985 Restricted for: Law enforcement 5,111 Public facilities 745,060 Unrestricted 10,073,074 Total net position $ 18,764,230 .0 The accompanying notes are an integral part of these financial statements. -19- low INICE C�j of Okeechobee, Florida► Statement of Activities - Governmental Activities Year ended September 30, 2014 Program Revenues Net (Expense) Operating Capital Revenue and Charges for Grants and Grants and Changes in Functions/Programs Expenses Services Contributions Contributions Net Position General government $ 1,188,276 $ 548,093 $ 120,874 $ 248,500 $ (270,809) Public safety 3,450,010 18,626 1,886 - (3,429,498) Transportation 656,722 19,616 619,480 - (17,626) Physical environment 1,021,989 - - 225,776 (796,213) Economic environment 11,285 - - - (11,285) Total governmental activities $ 6,328,282 $ 586,335 $ 742,240 $ 474,276 (4,525,431) General revenues: Property taxes 1,771,380 Public utility taxes 775,701 Franchise fees 515,186 Shared revenues not restricted to specific programs 1,194,111 Unrestricted investment earnings 6,844 Miscellaneous 55,757 Total general revenues 4,318,979 Change in net position (206,452) Net position, beginning 18,970,682 Net position, ending $ 18,764,230 The accompanying notes are an integral part of these financial statements. 46 -20- go ww, lor+ City orOkeechobee, Florida Balance Sheet - Governmental Funds Community Appropriations FDOT Total Development Grant Grant Nonmajor Governmental ,M September 30,',2014 General Capital Project Capital Project Capital Project Funds Funds ASSETS Cash and cash equivalents $ 11,046,122 $ 150,528 $ - $ 18,287 $ 68,625 $ 11,283,562 Accounts receivable 100,506 - - - 100,506 are Due from other funds 504,028 - - - 504,028 Due from other governments 169,302 - 248,500 - 417,802 Inventory 32,764 - - - - 32,764 Total assets $ 11,852,722 $ 150,528 $ 248,500 $ 18,287 $ 68,625 $ 12,338,662 4M LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Accounts payable $ 166,228 $ - $ $ - $ - $ 166,228 40 Accrued expenses 189,468 - - - - 189,468 Due to other; funds - 150,528 248,500 105,000 - 504,028 Total liabilities 355,696 150,528 248,500 105,000 - 859,724 Deferred inflows of resources: "r Deferred revenue - business tax revenue 46,087 - - - - 46,087 Fund balances: NonspendabIle for: Inventory 32,764 - - - - 32,764 wr Restricted for: Public facilities 745,060 - - - 745,060 Law enforcement - - - 5,111 5,111 ,o Assigned fort, Subsequent year's expenditures 1,110,541 - - - 1,110,541 Future capital projects 373,162 - - 373,162 Impact fees - - 63,514 63,514 ,,,w Unassigned 9,189,412 - - (86,713) - 9,102,699 Total fund balances (deficit) 11,450,939 - - (86,713) 68,625 11,432,851 Total liabilities, deferred inflows of resources and fund balances $11,852,722 $ 150,528 $ 248,500 $ 18,287 $ 68,625 rr Amounts reported for governmental activities in the statement of net position are different because: Negative net pension obligation resulting from overfunding of the police officers' and firefighters' pension plans. 575,214 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 7,940,985 .rr Long-term liabilities, including the net OPEB obligation and compensated absences are not due and payable in the current period and, therefore, are not reported in the funds. (1,184,820) a� Net position of governmental activities $ 18,764,230 The accompanying notes are an integral part of these financial statements. -21- of Okeechobee, Florida; Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Community Appropriations FDOT Total Development Grant Grant Nonmajor Governmental Year ended September30, 2014 General Capital Project Capital Project Capital Project Funds Funds Revenues Taxes $ 2,493,500 $ - $ - $ - $ - $ 2,493,500 Intergovernmental 2,091,319 225,776 248,500 - - 2,565,595 Charges for services 398,759 - - - - 398,759 Permits and fees 579,075 - - - - 579,075 Fines and forfeitures 19,493 - - - 2,750 22,243 Miscellaneous 55,682 - - - 57 55,739 Total revenues 5,637,828 225,776 248,500 - 2,807 6,114,911 Expenditures Current: General government 1,072,242 - - - - 1,072,242 Public safety 3,124,312 - - - 873 3,125,185 Transportation 1,000,849 - - - - 1,000,849 Physical environment 204,786 17,913 11,285 104,213 - 338,197 Capital outlay 629,491 211,865 248,500 - 2,534 1,092,390 Total expenditures 6,031,680 229,778 259,785 104,213 3,407 6,628,863 Deficiency of revenues under expenditures (393,852) (4,002) (11,285) (104,213) (600) (513,952) Other financing sources (uses) Transfers in 57 - 11,285 17,500 - 28,842 Transfers out (28,785) - - - (57) (28,842) Proceeds from sale of capital assets 260,604 - - - - 260,604 Total other financing sources (uses) 231,876 - 11,285 17,500 (57) 260,604 Net change in fund balances (161,976) (4,002) - (86,713) (657) (253,348) Fund balances, beginning of year 11,612,915 4,002 - - 69,282 11,686,199 Fund balances (deficit), end of year $11,450,939 $ - $ - $ (86,713) $ 68,625 $ 11,432,851 C� The accompanying notes are an integral part of these financial statements. aw -22- 17 .. City oTOkeechobee, Florida Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended September 30, 2014 Net change in fund balances - total governmental funds $ (253,348) Amount$ reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the •" amount by which capital outlay exceeded depreciation in the current period. 549,933 In the statement of activities, only the gain (loss) on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the +�+ change in fund balance by the net book value of the disposed capital assets. (279,287) The net effect of overfunded pension contributions that are reported as d, expenditures in the fund financial statements and are recorded as a net pension asset on the statement of net position. (19,849) Other postemployment benefit obligation reported in the statement of activities a` does not require the use of current financial resources; therefore, is not reported as an expenditure in governmental funds. (183,074) ON Compensated absences are reported in the statement of activities when earned. As they do not require the use of current financial resources, they are not reported as expenditures on governmental funds until they have matured. This is the amount of compensated absences reported in the statement of activities in the prior year that has matured in the current year. (20,827) Change in net position of governmental activities $ (206,452) The accompanying notes are an integral part of these financial statements. -23- am Cof Okeechobee, Florida Statement of Fiduciary Net Position - Pension Trust Funds Pension September 30, 2014 Trust Funds ASSETS Cash equivalents $ 463,780 Investments: Mutual funds 13,714,063 Common equity securities 6,770,251 Receivables 167,322 Accrued interest and dividends 11,916 Total assets 21,127,332 LIABILITIES Accounts payable 15,317 Total liabilities 15,317 NET POSITION Held in trust for pension benefits $ 21,112,015 The accompanying notes are an integral part of these financial statements. - 24 City 8e6keechobee, Florida Statement of Changes in Fiduciary Net Position - Pension Trust Funds Pension Year ended September 30, 2014 Trust Funds ADDITIONS am Contributions: State $ 120,874 City' 661,675 aw Employees 243,732 Total contributions 1,026,281 Investment earnings: Net appreciation in the fair value of investments 1,675,028 *� Interest and dividends 416,062 Total investment earnings 2,091,090 Less investment expenses (111,153) Net investment earnings 1,979,937 Total additions 3,006,218 Aw DEDUCTIONS Benefits paid to participants 579,755 Refunds on termination 58,072 DROP payment 57,353 Administrative expenses 51,069 Total deductions 746,249 Change in net position 21259,969 Net position held in trust for pension aw benefits, beginning of year 18,852,046 Net position held in trust for pension ,. benefits, end of year $ 21,112,015 ON 0 am The accompanying notes are an integral part of these financial statements. -25- W& THIS PAGE IS INTENTIONALLY LEFT BLANK. 77 -26- 7 City okeechobee, Florida Notes to Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. REPORTING ENTITY The City of Okeechobee (the "City") was originally incorporated in 1915 and its present charter was adopted in 1919 under Chapter 8318 of Special Acts of 1919. The City operates under the council form of government and provides the following services: general government, public safety, transportation and physical environment. These financial statements present the primary government and its component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. Discretely presented component units are entities that are legally separate from the City, but whose relationship with the City are such that the exclusion would cause the City's financial statements to be misleading or incomplete. The City has no discretely presented component units. The City reports the following blended component units: AM MunicipalFirefighters' Pension Trust Fund — The fund is under the supervision of a five member local independent Board of Trustees who are selected for office under the provisions of Florida Statutes, go Chapter 175. The Board of Trustees cannot amend the provisions of the plan without the approval of the City Council. This plan covers all full-time firefighters of the City. The City funds the plan according to any contribution deficit as determined by actuarial valuation for the plan beyond the contributions "" by employees and the State Insurance Premium Tax Contribution. It is accounted for in the Pension Trust funds. Municipal Police Officers' Pension Trust Fund — The fund is under the supervision of a five member local independent Board of Trustees who are selected for office under the provisions of Florida Statutes, Chapter 185. The Board of Trustees cannot amend the provisions of the plan without the 4W approval of the City Council. This plan covers all full-time sworn officers of the City. The City funds the plan according to any contribution deficit as determined by actuarial valuation for the plan beyond the AW contributions by employees and the State Insurance Premium Tax Contribution. It is accounted for in the Pension Trust funds. to The City of Okeechobee and Okeechobee Utility Authority Employees' Retirement System — The fund is under the supervision of a five member local independent Board of Trustees. The Board of Trustees cannot amend the provisions of the plan without the approval of the City Council. This plan benefits AW the City general employees and the Okeechobee Utility Authority employees. The City and the Utility Authority fund the plan. The fund was presented as a discretely presented component unit in the 2013 basic financial statements. It is accounted for in the Pension Trust funds in 2014 as the City does A,„ have fiduciary responsibility. r-- -27- City of Okeechobee, Florida Notes to Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS The government -wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government. Governmental activities are those which normally are supported by taxes and intergovernmental revenues. Likewise the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The City reports the following major governmental funds: 77 -28- 1'7 r City Okeechobee, Florida Notes to Financial Statements "w NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION 0" (Continued) The general fund is the City's primary operating fund. It accounts for all financial resources of '• the general government, except those required to be accounted for in another fund. The community development capital project fund accounts for the financial resources related A. to the construction of infrastructure and other improvements in the City. The appropriations grant capital project fund accounts for the financial resources related to • the construction of infrastructure and other improvements in the City provided by specific grants and matching funds. The FDOT grant capital project fund accounts for the financial resources related to the construction of infrastructure and other improvements to roadways, right-of-way of roads and/or medians of roads in the City. The City reports the following nonmajor governmental funds: The impact fees capital project fund accounts for the City's collection and expenditure of impact fees, which are restricted to be spent on capital projects related to law enforcement, fire protection and transportation. The law enforcement special revenue fund accounts for the assets that are restricted to fund certain expenditures of the City's police department. Additionally, the City reports the following fund types: The pension trust fund account is used to account for assets held by the City in a fiduciary 00 capacity for the general employees', police officers' and firefighters' pension plans. The funds are operated by carrying out specific terms of statutes, ordinances and other governing regulations. so The effect of interfund activity has been eliminated from the government -wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and 4+ contributions. Internally dedicated resources are reported as general revenues rather than as pro- gram revenues. Likewise, general revenues include all taxes. A. Expenses for compensated absences are allocated based on the assigned function of the related employee. .. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. -29- Ciy of Okeechobee, Florida Notes to Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY 1. Cash and investments The investment of municipal funds is authorized by local ordinance and Florida Statutes, which allow the City to invest in the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, SEC registered money market funds with the highest credit quality rating, interest -bearing time deposits or savings accounts in qualified public depositories, direct obligations of the U.S. Treasury, commercial paper with certain ratings, pre -refunded municipal obligations, banker's acceptances maturing within one year, investment agreements, direct and general long-term and short-term obligations of any state with proper credit rating and full faith and credit pledge, municipal obligations with proper credit rating and repurchase agreements with maturities of 30 days or less with organizations with certain stipulations and requirements. The City invests certain surplus funds in an external investment pool, the Local Government Surplus Funds Trust Fund (the "State Pool"). The State Pool is administered by the Florida State Board of Administration ("SBA"), who provides regulatory oversight. On September 30, 2008, the SBA reported that the State Pool was exposed to potential risks due to indirect exposure in the sub -prime mortgage financial market. Consequently, the SBA placed some restriction on how participants could access portions of their surplus funds and ultimately restructured the State Pool into two separate pools ("Florida PRIME" (formerly "LPIG") and "Fund B"). In fiscal year 2014 the SBA distributed the principal Fund B balances in full to each Fund B participant, and the weighted average life of the fund's assets is effectively zero and is considered closed. The Florida PRIME has adopted operating procedures consistent with the requirements for a 2a7-like fund. The City's investment in the Florida PRIME is reported at amortized cost. The fair value of the City's position in the pool is equal to the value of pooled shares. The City pools the investments of its governmental funds. Investment earnings of the pool are allocated to the participating funds at the end of each month based on the ratio of each participant funds' investment to the total pooled investment. Cash and cash equivalents include cash deposits, cash funds held in broker accounts and investments held in the Local Government Surplus Funds Trust Fund (Florida PRIME). Within the firefighters', police officers' and general employees' pension trust funds, plan assets are managed by Bowen, Hanes and Company. The plans follow the investment guidelines as established within the ordinance. The pension trust funds are allowed to invest in the State Pool; obligations of the U.S. Government or agencies thereof; banking institutions within the state and other such institutions within the guidelines of the state statutes which are insured by the Federal Deposit Insurance Corporation; investments agreements; direct and general long-term obligations of any state,,, with proper credit rating and full faith and credit pledge; municipal obligations with proper credit rating; annuity and life insurance contracts; bonds issued by the State of Israel; and stocks, bonds, and -30- .. s �• Fn City CrOkeechobee, Florida Notes to Financial Statements A' NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued) Aw 1. Cash and investments (continued) • commingled funds administered by National or State banks or evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, provided that the corporation is listed on a nationally recognized exchange and holds proper credit ratings as set forth �. by a major credit rating service. These equity investments are not to exceed 60% of the assets of the pension trust funds on a cost basis. Temporary investment funds held by the custodian in a money market fund are classified as cash equivalents within the investment account. Pension trust fund investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are .r valued at the last reported sales price. Shares of mutual funds, including proprietary funds and common and collective funds, are valued at quoted market prices, which represent the net asset value of shares held by the pension trust fund at year end. Interest is recognized when earned. Gains and losses from the sale or exchange of investments are recognized on the transaction date. The difference between the excess of fair value over cost represents unrealized gains. a' 2. Receivables and payables All trade and property tax receivables are considered to be fully collectible. The City's property tax is levied annually on the real and personal property located in the City on January 1st of the prior year. Tax collections by the Okeechobee County tax collector begin in .. November of each year with a due date of March 31 of the following year. All property taxes remaining unpaid at May 30 are subject to a tax certificate sale. Am The City is permitted by State law to levy taxes up to 10 mills on assessed valuation. During a Special Session in June, 2007, the Florida Legislature adopted HB1B which limits municipal property tax rates'' beginning in the 2008 fiscal year. This legislation established reductions in the millage rate am based on a calculated growth in per capita taxes between the 2002 and 2007 fiscal years. The Legislature did authorize local governments to use the rolled back millage rate if approved by a super majority vote of the governing body. The Okeechobee City Council levy for the fiscal year ,. ended September 30, 2014 was 7.7432 mills, which is 5.84% less than the rolled back rate. The City Council determines the millage rates and adopts a tax levy by resolution prior to September 30 to fund the next ensuing fiscal year's budget. The assessment of all properties and collection of municipal taxes are provided by the County's Property Appraiser and Tax Collector. The ad valorem tax calendar is as follows: A Lien date - January 1 Levy date - Prior to September 30 Due date - November 1 Am Delinquent date - April 1 All property taxes remaining unpaid at May 30 are subject to a tax certificate sale by the Tax Collector. -31- C* of Okeechobee, Florida Notes to Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued) 3. Inventory Inventories are valued at cost which approximates market, using the first-in/first-out (FIFO) method. The costs of inventories are recorded as expenditures when used (consumption method). 4. Capital assets Capital assets, which include: property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the government -wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $500 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment are depreciated using the straight-line method over the following esti- mated useful lives: Assets Years Buildings 25-60 Building improvements 12-20 Vehicles 10 Equipment 5-15 5. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All sick and vacation pay is accrued when incurred in the government -wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 6. Deferred inflows of resources Resources received before time requirements were met, which were previously reported as unearned revenue liabilities in the governmental funds, are now classified as deferred inflows of resources due to the implementation of GASB Statement No. 65. I" -32- 77, City eOkeechobee, Florida Notes to Financial Statements .. NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIESam , DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued) 1W 7. Long'.term obligations In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. In the governmental fund financial statements, the face amount of debt issued is reported as other financingsources. 8. Fund equity The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable Fund Balance — Amounts that are (a) not in spendable form or (b) legally or go contractually required to be maintained intact. "Not in spendable form" includes items that are not expected', to be converted to cash (such as inventories and prepaid amounts) and items such as long- term amounts of loans and notes receivables, as well as property acquired for resale. The corpus (or 4M principal)'''of a permanent fund is an example of an amount that is legally or contractually required to be maintained intact. a. Restricted Fund Balance — Amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors or laws or Am regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. r, Committed Fund Balance — Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Council, the Council's highest level of decision making authority. Commitments may be changed or lifted only by the council taking the same formal action (resolution) a, that imposed the constraint originally. The City had no committed fund balance at year end. Assigned' Fund Balance — Includes spendable fund balance amounts established by the City QM Administrator or the Council that are intended to be used for specific purposes that are neither considered restricted or committed. 1W Unassigned Fund Balance — Unassigned fund balance is the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed or assigned to specific purposes within the general fund. so -33- Cl�y of Okeechobee, Florida► Notes to Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued) S. Fund equity (continued) Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those specific purposes. The City would typically use restricted fund balances first, followed by committed resources and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of these other classified funds. Fund Deficit — The FDOT grant capital project fund had a deficit of $86,713 at September 30, 2014. This deficit is due to expenditures exceeding revenues. The City intends to cover this deficit in 2015 to with future years' anticipated reimbursement funds from the Florida Department of Transportation through the Florida Highway Beautification Council (FHBC) Grant. to E. ACCOUNTING CHANGES The City has implemented GASB Statement No. 65, "Items Previously Reported as Assets and Liabilities", which amends or supersedes the accounting and financial reporting guidance for certain items previously required to be reported as assets or liabilities. The Statement requires governments to either properly classify certain items that were previously reported as assets or liabilities as deferred outflows of resources or deferred inflows of resources, or recognize certain items that were previously reported as assets and liabilities as outflows of resources (expenses) or inflows of resources (revenues). Implementation requires the City to analyze items previously reported as "deferred." The City reclassified unavailable revenues in governmental funds and resources received before time requirements were met to deferred revenues in the deferred inflows of resources category. 0 M -34- C! NONE � x �r City oT'Okeechobee, Florida Notes to Financial Statements NOTE 2: RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET POSITION 40 The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds and net position -governmental activities as reported in the government -wide statement of net position. One element of that reconciliation states that "long-term liabilities, M including the net OPEB obligation and compensated absences, are not due and payable in the current period and, therefore, are not reported in the funds." The details of this $(1,184,820) difference are as follows: dW Net pPEB obligation $ (811,717) Compensated absences (373,103) Net adjustment to reduce fund balance - total governmental funds to arrive at net position -governmental activities $ (1,184,820) B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES dw The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the government -wide statement of activities. •W One element of that reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense." The details of this $549,933 difference are as 40 follows: dM Capital outlay Depreciation expense Net adjustment to increase net changes in fund balances - total $ 1,092,390 (542.457 governmental funds to arrive at changes in net position of governmental �. activities $ 549,933 A" 0 -35- 0 C`f Okeechobee, Florida Notes to Financial Statements NOTE 3: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. BUDGETARY INFORMATION As permitted by GASB Statement No. 34, Basic Financial Statements and Management Discussion and Analysis for State and Local Governments, the City has elected to disclose all budgetary information in the notes to the required supplementary information. NOTE 4: DETAILED NOTES ON ALL FUNDS A. DEPOSITS AND INVESTMENTS At September 30, 2014, the City's carrying amount of deposits was $11,283,188 and the bank balance was $11,365,732. In addition, the City maintained $324 of petty cash. As of September 30, 2014, $250,000 of the City's bank balances are covered by federal depository insurance (FDIC). Monies invested in amounts greater than the insurance coverage are secured by the qualified public depositories pledging securities with the State Treasurer in such amounts required by the Florida Security for Public Depositories Act. In the event of a default or insolvency of a qualified public depositor, the State Treasurer will implement procedures for payment of losses according to the validated claims of the City pursuant to Section 280.08, Florida Statutes. At September 30, 2014, the City had the following investments: Investment Maturities (in years) More Investment type Fair Value Less than 1 1-5 6 - 10 than 10 Rating Agency Primary government SBA (Florida Prime) $ 50 $ 50 $ $ $ AAAm S&P No Pension trust funds: Money market fund $ 463,780 $ 463,780 $ $ $ Not rated - Mutual funds 13,714,063 - 13,714,063 BBB - AA S&P Common equity securities -domestic 6,567,536 6,567,536 - Not rated ku Common equity securities -foreign 202,715 202,715 - Not rated $ 20,948,094 $ 7,234,031 $ $ 13,714,063 $ Credit risk Fixed income securities have inherent financial risks, including credit risk and interest rate risk. Credit risk for fixed income securities is the risk that the issuer will not fulfill its obligations. The City's investment policy and the investment policies for the firefighters', police officers' and general employees' pension trust funds limit investments to securities with specific ranking criteria. n -36- ft 4Y City eOkeechobee, Florida Notes to Financial Statements NOTE 4: DETAILED NOTES ON ALL FUNDS (Continued) A. DEPOSITS AND INVESTMENTS (Continued) Interest rate risk air Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect an investment's fair value. In accordance with Florida Statute 218.415(6), the City's policy is to match investment maturities with known cash needs and anticipated cash flow requirements. The City's pension trust funds do not address interest rate risk. * Concentration of credit risk Concentration of credit risk is an increased risk of loss that occurs as more investments are aw acquired from one issuer (i.e. lack of diversification). The City's investment policy and the investment policies for the firefighters', police officers' and general employees' pension trust funds do not specifically address concentration of credit risk. Foreign currency risk 4W The City's firefighters', police officers' and general employees' pension trust funds contain investments in foreign corporate bonds; however, all of the investments are denominated in U.S. dollars and are not exposed to foreign currency risk. .m B. RECEIVABLES .. Receivables as of September 30, 2014 are as follows: Municipal Municipal .W Police Officers' Firefighters' General General Pension Pension Employees aw Fund Trust Trust Pension Trust Franchise/Utility taxes $ 99,847 $ - $ - $ - Contributions - 65,194 28,119 74,009 Other 659 - - - Receivables, net $ 100,506 $ 65,194 $ 28,119 $ 74,009 so -37- «W Cii of Okeechobee, Florida► Notes to Financial Statements NOTE 4: DETAILED NOTES ON ALL FUNDS (Continued) C. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2014 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $ 1,378,744 $ - $ - $1,378,744 Construction in progress - 72,114 - 72,114 Total capital assets, not being depreciated 1,378,744 72,114 - 1,450,858 Capital assets, being depreciated: Buildings 1,919,585 49,882 - 1,969,467 Improvements other than buildings 6,332,055 547,785 - 6,879,840 Equipment 2,592,696 422,609 (359,607) 2,655,698 Total capital assets, being depreciated 10,844,336 1,020,276 (359,607) 11,505,005 Less accumulated depreciation for: Buildings (761,023) (62,693) - (823,716) Improvements other than buildings (2,308,530) (285,552) - (2,594,082) Equipment (1,483,188) (194,212) 80,320 (1,597,080) Total accumulated depreciation (4,552,741) (542,457) 80,320 (5,014,878) Total capital assets, being depreciated, net 6,291,595 477,819 (279,287) 6,490,127 Governmental activities capital assets, net $ 7,670,339 $ 549,933 $ (279,287) $7,940,985 The current year increase in capital assets does not include any donated capital assets. Depreciation expense was charged to functions/programs of the government as follows: Governmental activities: General government $ 58,806 Public safety 160,310 Physical environment 323,341 Total depreciation expense -governmental activities $ 542,457 7 IMM G q yy .r City o4�Okeechobee, Florida Notes to Financial Statements 'w NOTE 4: DETAILED NOTES ON ALL FUNDS (Continued) D. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund loans of $504,028 for short term operating purposes resulted in a due to the General fund from the Community Development Capital Project fund of $150,528, Appropriations Grant Capital Project fund of $248,500, and the FDOT Grant Capital Project fund of $105,000. All amounts are expected to be repaid within one year. During the year ended September 30, 2014, the Impact Fee Capital Project fund (a nonmajor fund) transferred $57 to the General fund. The transfer represented administrative fees that were earned ..► from collecting impact fees for the County, School Board and the City, and was transferred for the purpose of removing all balances and activity unrelated to the collection and expenditure of impact fees. During the year ended September 30, 2014, the General fund transferred $11,285 to the Appropriations Grant Capital Project fund and $17,500 to the FDOT Grant Capital Project fund for a total of $28,785. The transfers represented engineering costs for the respective partially grant funded capital projects. E. CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the year ended September 30, 2014, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Net OPEB obligation $ 628,643 $ 183,074 $ - $ 811,717 $ - Compensated absences 352,276 150,279 (129,452) 373,103 155,500 Long-term liabilities $ 980,919 $ 333,353 $ (129,452) $ 1,184,820 $ 155,500 so For the governmental activities, compensated absences are generally liquidated by the general fund. NOTE 5: OTHER INFORMATION A. RISK MANAGEMENT The City is exposed to various risks of loss, including, but not limited to theft, damage or destruction of aw its buildings, equipment, records and monetary assets, and liability for personal injury, property damage and consequences of employee and public official actions. The City participates in a non - assessable public risk pool to cover significant loss exposure and purchases commercial insurance for ,,, third party pollution liability coverage. The pool maintains a loss reserve and purchases specific excess insurance, aggregate excess insurance and multiple loss coverage from commercial carriers and underwriters. .. -39- C, of Okeechobee, Florida .wr Notes to Financial Statements NOTE 5: OTHER INFORMATION (Continued) B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS Plan Descriptions — The City contributes to two single -employer defined benefit pension plans: City of Okeechobee Municipal Police Officers' Pension Trust Fund and City of Okeechobee Municipal Firefighters' Pension Trust Fund (the Plans). The Plans provide retirement, disability and death benefits to plan members and their beneficiaries. Chapters 185 and 175 of the Florida Statutes establish the minimum benefits and the minimum standards for the operation and funding of the Police Officers' and the Firefighters' Municipal Pension Trust Funds, respectively. Per City Ordinances Nos. 750 and 749, sole responsibility for administering the Plans is vested in the Board of Trustees of each plan. The Boards cannot amend the provisions of the plans without the approval of the City. The Plans issue publicly available financial reports that include financial statements and required supplementary information. The reports are available from the City of Okeechobee, Florida, 55 S.E. Third Avenue, Okeechobee, Florida 34974. Funding Policies — The contribution requirements of plan members and the City are established and may be amended by City ordinance. Plan members are required to contribute 5% of their annual covered salary for the Police Officers' and Firefighters' Municipal Trust Funds. The City is required to contribute an amount equal to the difference in each year between the total aggregate member contributions for the year, plus state contributions for such year, and the normal cost for the year, as shown by the most recent actuarial valuation of the plan; the current contribution rate as a percentage of covered payroll is 21.97% for the Police Officers' plan and 15.69% for the Firefighters' plan. The City recognized as revenues and expenditures on -behalf payments relating to pension contributions for its public safety employees that the State of Florida paid to the Police Officers' and Firefighters' Plans in the amounts of $67,639 and $53,235, respectively. These contributions are funded by an excise tax upon certain casualty insurance companies on their gross receipts of premiums from policy holders. Annual Pension Cost — The annual required pension contributions for the Plans were determined as part of the October 1, 2014 actuarial valuations using the aggregate actuarial cost method. The aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities. The actuarial assumptions included (a) 7% investment rate of return (net of administrative expenses) for both the Police Officers' Trust and Firefighters' Trust and (b) projected salary and cost -of -living increases of 6% and 7% for the Police Officers' Trust and Firefighters' Trust, respectively. Assumption (b) included an inflation component of 2.75% for the Police Officers' Trust and Firefighters' Trust. The actuarial value of assets was determined using a method which recognizes actual investment return in excess of the assumed return evenly over a four year period. M -40- City of Okeechobee, Florida Notes to Financial Statements NOTE 5: OTHER INFORMATION (Continued) da B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS (Continued) Trend information for each of the City's defined benefit plans: 4. Net Annual Percentage Pension am Year Pension Cost Of APC Obligation Ended (APC) Contributed (Asset) Municipal Police Officers' 9/30/12 $ 220,605 95% $ (274,642) AN 9/30/ 13 249,342 95% (263, 654) 9/ 30/ 14 280,303 96% (251, 200) Municipal Firefighters' 9/30/12 $ 103,865 94% $ (338,013) 9/30/13 110,519 94% (331,409) 9/30/14 122,212 94% (324,014) ,r Funding Status and Funding Progress — The funded status of the Plans as of October 1, 2014, the most recent actuarial valuation date, is shown below: Actuarial Overfunded Accrued Liability UAAL as a % of Actuarial Value (AAL) —Entry Age (Assets in excess Funded Ratio Covered Covered Payroll of assets (a) * (b) of) AAL (b) - (a) (a)/(b) Payroll (c) (b-a)/(c) Police Officers': $ 7,075,831 $ 6,930,931 $ (144,900) 102.1% $ 911,189 -15.9% .r Firefighters': $ 3,062,097 $ 3,006,957 $ (55,140) 101.8% $ 523,119 -10.5% * For purposes of this schedule, the AAL for the Plan is determined using the entry age actuarial cost method. Note that the ARC for the Plan is calculated using the aggregate actuarial cost method. 0 rn The schedule of funding progress presented as required supplementary information (RSI) immediately following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the AAL for benefits. -41- Ciof Okeechobee, Florida Notes to Financial Statements NOTE 5: OTHER INFORMATION (Continued) B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (Continued) The City of Okeechobee and Okeechobee Utility Authority Employees' Retirement System Plan Description - The City contributes to the City of Okeechobee and Okeechobee Utility Authority Employees' Retirement System (the "System"), a cost -sharing multiple employer defined benefit pension plan administered by the System's Board of Trustees. Substantially all of the City's general employees and the employees of the Okeechobee Utility Authority participate in this public employee retirement system. The System was established by City Ordinance No. 655, as amended and restated by City Ordinance No. 686. The System provides retirement, disability and death benefits to plan members and their beneficiaries. The Board of Trustees is authorized by City Ordinance No. 686 to establish and amend all plan provisions. The System issues a publicly available financial report that includes financial statements and required supplementary information. That report is available from the City of Okeechobee, Florida, 55 S.E. Third Avenue, Okeechobee, Florida 34974. Funding Policy - The contribution requirements of the plan members and the City are established and may be amended by City ordinance. Plan members are required to contribute 6% of their covered annual salary. The City is required to contribute at an actuarially determined rate; the current rate is 12.10% of covered payroll. The City's contributions for the years ended September 30, 2014, 2013 and 2012 were $379,407 $361,172 and $359,298, respectively and were equal to the required contributions for each year. 17 r" -42- 0 12 ,., r$ City o"iOkeechobee, Florida Notes to Financial Statements .. NOTE 5: OTHER INFORMATION (Continued) B. RETIREMENT COMMITMENTS - DEFINED BENEFIT PLANS (Continued) Pension trust funds fiduciary net position activity as of September 30, 2014 was as follows: A. Police General Firefighters' Officers' Employees' Total Pension go Pension Pension Pension Trust Funds ASSETS' Cash equivalents $ 69,744 $ 145,118 $ 248,918 $ 463,780 Investments: Mutual funds 2,197,448 5,167,789 6,348,826 13,714,063 Common equity securities 959,249 2,329,340 3,481,662 6,770,251 Receivables 28,119 65,194 74,009 167,322 Accrued interest and dividends 1,717 4,242 5,957 11,916 do Total' assets 3,256,277 7,711,683 10,159,372 21,127,332 LIABILITIES A" Accounts payable 3,018 5,021 7,278 15,317 Total liabilities 3,018 5,021 7,278 15,317 an «. NET POSITION Held in trust for pension benefits $ 3,253,259 $ 7,706,662 $ 10,152,094 $ 21,112,015 -43- CI of Okeechobee, Florida Notes to Financial Statements NOTE 5: OTHER INFORMATION (Continued) B. RETIREMENT COMMITMENTS - DEFINED BENEFIT PLANS (Continued) Pension trust funds increase in fiduciary net position activity as of September 30, 2014 was as follows: Police General Firefighters' Officers' Employees' Total Pension Pension Pension Pension Trust Funds ADDITIONS Contributions State $ 53,235 $ 67,639 $ - $ 120,874 City 82,058 200,210 379,407 661,675 Employees 23,854 43,135 176,743 243,732 Total contributions 159,147 310,984 556,150 1,026,281 Investment earnings: Net appreciation in the fair value of investments 281,981 587,391 805,656 1,675,028 Interest and dividends 64,467 150,509 201,086 416,062 Total investment earnings 346,448 737,900 1,006,742 2,091,090 Less investment expenses (27,822) (37,211) (46,120) (111,153) Net investment earnings 318,626 700,689 960,622 1,979,937 Total additions 477,773 1,011,673 1,516,772 3,006,218 DEDUCTIONS Benefits paid to participants 85,100 201,398 293,257 579,755 Refunds on termination - 26,954 31,118 58,072 DROP payment 57,353 - - 57,353 Administrative expenses 16,157 18,098 16,814 51,069 Total deductions 158,610 246,450 341,189 746,249 Change in net position 319,163 765,223 1,175,583 2,259,969 Net position held in trust for pension benefits, beginning of year 2,934,096 6,941,439 8,976,511 18,852,046 Net position held in trust for pension benefits, end of year $ 3,253,259 $ 7,706,662 $ 10,152,094 $ 21,112,015 l7 -44- 77 City oYOkeechobee, Florida .. NOTE 5: OTHER INFORMATION (Continued) C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION 0 Notes to Financial Statements Plan description. The City of Okeechobee, Florida administers a single -employer defined benefit healthcare plan (the "Plan") that provides medical insurance to its employees and their eligible dependents. Pursuant to Section 112.0801 Florida Statutes, the City is required to provide eligible retirees (as defined in the City's pension plans) the opportunity to participate in this Plan at the same cost that is applicable to active employees. Benefit provisions for the Plan were established by City Council on January 7, 1991 and may only be amended by City Council. The City has not established a trust or agency fund for the Plan. The City does not issue stand-alone financial statements for this AW Plan. All 'financial information related to the Plan is accounted for in the City's basic financial statements. .. Employees and their dependents may elect to remain in the Plan upon retirement up to age 65. After age 65 the City's insurance coverage becomes secondary to the retiree's Medicare insurance. The Plan has 2 retirees receiving benefits and has a total of 68 active participants and dependents. Funding policy. The City is funding the plan on a pay-as-you-go basis. Employees and their dependents are required to pay 100% of the insurance premiums charged by the carrier. There is an implied dw subsidy in the insurance premiums for these employees because the premium charged for retirees is the same as the premium charged for active employees, who are younger than retirees on average. 4M For the year ended September 30, 2014, the City's contribution is $34,935, which represents an estimate of the implied subsidy described above. Contributions of plan members totaled approximately $22,382 for the year ended September 30, 2014. Wo Annual OPEB cost and net OPEB obligation. The City's annual OPEB cost (expense) is calculated based • on the annual required contribution (ARC) of the employer, an amount determined using the Alternative Measurement Method, permitted by GASB Statement No. 45 for employers in plans with fewer than 100 total plan members. The ARC represents a level of funding that, if paid on an ongoing 4M basis, is projected to cover normal cost each year and to amortize any unfunded actuarial accrued liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year ended September 30, 2014, the amount .w, actually contributed to the Plan, and changes in the City's net OPEB obligation to the Plan: .r 0 .r ar -45- C*of Okeechobee, Florida + Notes to Financial Statements NOTE 5: OTHER INFORMATION (Continued) C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (Continued) Annual required contribution $ 219,521 Interest on net OPEB obligation 18,859 Adjustment to annual required contribution (20,371) Annual OPEB cost (expense) 218,009 Contributions made (34,935) Increase in net OPEB obligation 183,074 Net OPEB obligation — beginning of year 628,643 Net OPEB obligation — end of year $ 811,717 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for the fiscal year ending September 30, 2014 was as follows: Year Annual OPEB Percentage of Annual Net OPEB Ending Cost OPEB Cost Contributed Obligation 9/30/2014 $ 218,009 16% $ 811,717 9/30/2013 211,120 18% 628,643 9/30/2012 164,841 6% 456,060 Funded status and funding progress. Because the Plan has fewer than 200 members, the City is required to obtain an actuarial valuation at least every three years. The most recent actuarial valuation was performed as of September 30, 2013. Accordingly, the City will be required to obtain a subsequent actuarial valuation within three years of that date. As of September 30, 2013, the actuarial accrued liability for benefits was $1,255,666, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the Plan) was $2,345,956, and the ratio of unfunded actuarial accrued liability (UAAL) to the covered payroll was 54%. The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, future interest rates, mortality, medical cost inflation, Medicare coverage and changes in marital status. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continuous revision as actual results are compared to past expectations and new estimates about the future are formulated. The schedule of funding progress presented as required supplementary information following the notes to the financial statements, will present multiyear trend information that shows whether the actuarial value of Plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Because fiscal year 2010 was the year of implementation of GASB Statement No 45 and the City elected to apply the statement prospectively, only two actuarial valuations are presented in the schedule at this time. In future years, required trend data will be presented. 7 -46- r° !` City of -Okeechobee, Florida Notes to Financial Statements NOTE 5: OTHER INFORMATION (Continued) MW C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (Continued) Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the 40 substantive plan (the plan as understood by the employer and the Plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and Plan members to that point. The methods and assumptions used do include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the September 30, 2013 valuation, the entry age normal cost method was used. The assumptions included a discount rate of 3.0%, a general inflation rate of 2.8%, and an annual healthcare cost trend �+ rate of 10% initially, increased to an ultimate rate of 20% after nine years. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payrolls on a closed basis over a period of 30 years. As authorized by GASB Statement No. 45, the Alternative Measurement Method with its simplifications of certain assumptions was employed in measuring actuarial accrued liabilities and the ARC. "" D. CONCENTRATION — COLLECTIVE BARGAINING UNIT Members of the City's fire department are covered by a collective bargaining agreement. The ON agreement with the employees covered by the International Association of Firefighters (IAFF) extended through September 30, 2009 and has not been renewed as of the date of our report. go r-A —71 NOTE 6: FUTURE ACCOUNTING PRONOUNCEMENTS The Governmental Accounting Standards Board has issued statements that will become effective in 2015. The statements address: • Accounting and financial reporting for pensions; • Mergers, acquisitions and transfers of operations The City is currently evaluating the effects that these statements will have on its 2015 financial statements. NOTE 7: SUBSEQUENT EVENT During November 2014, the City awarded the annual police vehicle purchase bid to an unrelated vendor for 12 police vehicles in the amount of approximately $263,000. -47- r7 THIS PAGE IS INTENTIONALLY LEFT BLANK. -48- v4we *4.re wa s 0 dw r-, REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT'S DISCUSSION AND ANALYSIS -49- *0# to THIS PAGE IS INTENTIONALLY LEFT BLANK. 77 -50- m City of Okeechobee, Florida Schedule of Revenues, Expenditures and Changes in Fund Balances - .. Budget and Actual - General Fund Actual Variance with "' Original Final (on Budgetary Final Budget Year ended September 30, 2014 Budget Budget Basis) Positive (Negative) 4W Revenues Taxes $ 2,342,468 $ 2,467,416 $ 2,493,500 $ 26,084 Intergovernmental 1,916,634 1,975,863 2,091,319 115,456 Charges for services 402,130 394,083 398,759 4,676 AW Permits and fees 495,156 557,739 579,075 21,336 Fines and forfeitures 21,500 14,867 19,493 4,626 Investment earnings 7,100 6,984 - (6,984) 1W Miscellaneous 3,000 4,226 55,682 51,456 Expenditures Current: General government: Legislative 137,627 112,059 111,229 830 Executive 179,816 172,037 169,827 2,210 City clerk 200,355 188,550 184,874 3,676 Financial services 251,123 236,962 229,550 7,412 Legal council 72,253 71,975 70,031 1,944 General services 327,111 325,244 321,327 3,917 Total general government 1,168,285 1,106,827 1,086,838 19,989 Public safety: Fire 1,370,181 1,306,642 1,275,385 31,257 .., Police 2,007,082 1,887,279 1,856,427 30,852 Total public safety 3,377,263 3,193,921 3,131,812 62,109 Transportation 1,075,459 1,015,757 993,049 22,708 Physical environment 675,500 434,218 428,497 5,721 Capitaloutlay 492,350 404,429 387,200 17,229 Total expenditures 6,788,857 6,155,152 6,027,396 127,756 De iciency of revenues under ,., expenditures (1,600,869) (733,974) (389,568) 344,406 Other financing sources uses Operating transfers in 500 55 57 2 Operating transfers out - - (28,785) (28,785) Sale of capital assets 257,400 260,940 260,604 (336) Net other financing sources uses 257,900 260,995 231,876 29,119 ueticiency or revenues ana oiner ,- financing sources under expenditures and other financing uses (1,342,969) (472,979) (157,692) 315,287 Fund balances, beginning of year 11,612,915 11,612,915 11,612,915 - Fund balances, end of year $10,269,946 $11,139,936 11,455,223 $ 315,287 aw Reconciliation of budgetary to GAAP basis Current year encumbrances 15,329 .. Prior year encumbrances (19,613) Fund balance on GAAP basis $ 11,450,939 AW F�j The accompanying notes to required supplementary information are an integral part of this schedule -51- Police Officers' Pension Plan Actuarial Unfunded Accrued (Assets in UAAL as a % Actuarial Actuarial Liability excess of) AAL Funded of Covered Valuation Value of AAL* (UAAL) Ratio Covered Payroll Date Assets (a) Entry Age (b) (b-a) (a/b) Payroll (c) ((b-a)/c) 2014 $ 7,075,831 $ 6,930,931 $ (144,900) 102.1% $ 911,189 -15.9% 2013 6,534,588 6,631,287 96,699 98.5% 928,602 10.4% 2012 6,044,391 6,187,990 143,599 97.7% 928,285 15.5% 2011 5,712,560 5,886,480 173,920 97.0% 936,580 18.6% 2010 5,666,207 5,546,001 (120,206) 102.2% 959,376 -12.5% 2009 5,424,146 5,201,828 (222,318) 104.3% 1,001,123 -22.2% Firefighters' Pension Plan Actuarial Accrued Overfunded UAAL as a % Actuarial Actuarial Liability (Assets in Funded of Covered Valuation Value of AAL* excess of) AAL Ratio Covered Payroll Date Assets (a) Entry Age (b) (b-a) (a/b) Payroll (c) ((b-a)/c) 2014 $ 3,062,097 $ 3,006,957 $ (55,140) 101.8% $ 523,119 -10.5% 2013 2,795,908 2,749,620 (46,288) 101.7% 473,939 -9.8% 2012 2,595,508 2,556,559 (38,949) 101.5% 429,008 -9.1% 2011 2,428,618 2,318,524 (110,094) 104.7% 457,776 -24.0% 2010 2,416,595 2,215,619 (200,976) 109.1% 461,752 -43.5% 2009 2,330,746 2,104,641 (226,105) 110.7% 459,952 -49.2% *The annual required contribution (ARC) is calculated using the aggregate actuarial cost method. Information in this schedule is calculated using the entry age actuarial cost method as a surrogate for the funding progress of the Plan. io The accompanying notes to required supplementary information are an integral part of this schedule -52- 77 City of Okeechobee, Florida Required Other Postemployment Benefits Supplementary Information - Schedule of Funding Progress UAAL Actuarial Unfunded a % of Actuarial Actuarial Accrued AAL Funded Covered *" Valuation Value of Liability (UAAL) Ratio Covered Payroll Date Assets (a) AAL (b) (b-a) (a/b) Payroll (c) ((b-a)/c) 9/30/2013 $ - $1,255,666 $1,255,666 0.0% $ 2,345,956 53.5% 8/1/2010 $ - $ 776,235 $ 776,235 0.0% $ 2,515,729 30.9% Note, Because fiscal year 2010 was the first year of implementation of GASB Statement No. 45 and the City elected to apply the statement prospectively, only two am actuarial valuations are presented in the schedule at this time. In future years, required trend data will be presented. .. .. AW The accompanying notes to required supplementary information are an integral part of this schedule -53- a IV City of Okeechobee, Florida Notes to Required Supplementary Information A. BUDGETARY INFORMATION Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year-end. The City Administrator may make transfers of appropriations within a department as long as the total budget of the department is not increased. Transfers of appropriations between departments require the approval of the council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level. The council made certain supplemental budgetary appropriations during the year. Encumbrances accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as restricted or assigned fund balances and do not constitute expenditures or liabilities because the commitments will be re -appropriated and honored during the subsequent year. B. ADDITIONAL ACTUARIAL INFORMATION The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Police Firefighters' Officers' Pension Plan Pension Plan Actuarial valuation date 10/01/14 10/01/14 Actuarial cost method Entry age Entry age Amortization method N/A N/A Remaining amortization period N/A N/A Asset valuation method Four year smoothed Four year smoothed Market Market Actuarial assumptions: Investment rate of return 7.0% 7.0% Salary increases 7.0%, including 6.0%, including inflation inflation Inflation 2.75% 2.75% Retirement age 100% when first 100% when first eligible for normal eligible for normal retirement or DROP retirement or DROP entry entry 7" -54- Carr, Riggs & Ingram, LLC /♦ C A'" rrC R 4"W R I G G S& CRI I N G R A M 215 Baytree Drive Melbourne, Florida 32940 (321) 255-0088 (321) 259-86488648 (fax) CPAs and Advisors www.cricpa.com 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 The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida We have, audited, in accordance with auditing standards generally accepted in the United States of so America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Okeechobee, Florida, as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City of Okeechobee, Florida's basic financial statements, and have issued our report thereon dated May 26, 2015. Other auditors audited the financial statements of the Police Officers' and Firefighters' Pension Trust Funds and the City of Okeechobee and Okeechobee Utilities Authority Employees' Retirement System, as described in our report on the City of Okeechobee, Florida's financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. 4" Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of *■ Okeechobee, Florida's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Okeechobee, Florida's internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Okeechobee, Florida's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, 'o in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. .. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be ,w material weaknesses or significant deficiencies, and therefore material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, +, material weaknesses may exist that have not been identified. -55- 46 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Okeechobee, Florida's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Melbourne, Florida May 26, 2015 771 -56- rr Carr, Riggs & Ingram, LLC ow ♦♦ C AV R r..✓ 215 Baytree Drive R I G G S& Melbourne, Florida 32940 ®`\ I N G R A M (321) 255-0088 (321) 259-8648 (fax) -� CPAs and Advisors www.cricpa.com INDEPENDENT AUDITORS' MANAGEMENT LETTER The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida .. Report on the Financial Statements We have audited the financial statements of the City of Okeechobee, Florida as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated May 26, 2015. Auditors" Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Other Reports We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Y. Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports, which are dated May 26, 2015, should be considered in conjunction with this management letter. 60 Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority s. Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The legal authority of the City of Okeechobee, Florida and its component units are disclosed in the footnotes. Financial Condition Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our determination as to whether or not the City of Okeechobee, Florida has met one or more of the -57- AW conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City of Okeechobee, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor City of Okeechobee, Florida's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our determination as to whether the annual financial report for the City of Okeechobee, Florida for the fiscal year ended September 30, 2014, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2014. In connection with our audit, we determined that these two reports were in agreement. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the members of the City Council, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Melbourne, Florida May 26, 2015 77 -58- .wrr C A R R Carr, Riggs & Ingram, LLC �®CRI R I G G S& 215 Baytree Drive ®� I N G R A M Melbourne, Florida 32940 a.r (321)255-0088 CPAs and Advisors (321) 259-8648 (fax) www.cricpa.conn ar INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE WITH LOCAL GOVERNMENT INVESTMENT POLICIES The Honorable Mayor and Members of the City Council Of the City of Okeechobee, Florida We have lexamined the City of Okeechobee's compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2014. Management is responsible for the City of Okeechobee's compliance with those requirements. Our responsibility is to express an opinion on the City of Okeechobee's compliance based on our examination. "' Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test �.---� basis, evidence about the City of Okeechobee's compliance with those requirements and performing aw such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City of Okeechobee's compliance with specified requirements. AM In our opinion, the City of Okeechobee complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these am specified parties. Melbourne, Florida May 26, 2015 -59- ,%W *40 lib THIS PAGE IS INTENTIONALLY LEFT BLANK. .m 7, .. AW .. Von City of Okeechobee AFFIDAVIT OF IMPACT FEE COMPLIANCE The City of Okeechobee, Florida has complied with Section 163.31801 of Florida Statute regarding accounting and reporting of impact fee collections and expenditures for Fiscal Year 2014. City ASdministrator aw Sworn to and subscribed before me this of arG%, 2015. I hereby state Cj11 ��ih t�t2,�`la 1 personally know to me or provided as personal identification hereby signed the above document. a cow HARNES#11fCOIl1HSSiOIiN EEit1906Notary Public signature umi6 Print, Type of Stamp, Name of Notary Public ndia Riedel Finance Director Sworn to and subscribed before me this. of ])aLftb 2015. low I hereby state T(j i CL ', Cd e' � personally know to me or provided •• as personal identification hereby signed the above document. Moutow �. �Q� 1 �X11/ ��b KIM SARNES otary Public signature MT0011M18ApRAEIl06 �►d„e�` : his, AW Print, Type of Stamp, Name of Nary otublic 55 S.E. Third Avenue • Okeechobee, Florida 34974-2903 • (863) 763-3372 • Fax: (863) 763-1686 -61- I *4w nXil (d t di CAR R RIGGS & CRIINGRAM CPAs and Advisors Required Communications a D l 3- ad 14 F4 SaM(;2-n w ouL R"tt_ 4t jAatL C A R C R RIGGS & INGRAM CPAs and Advisors May 26, 2015 Honorable Mayor and City Council City of Okeechobee, Florida 55 S.E. Third Avenue Okeechobee, FL 34974 Carr, Biggs & Ingram, LLC 215 Baftee Drive Melboume, Florida 32940 (321)255-0088 (321) 259-8548 (fax) www.cr cpa.com We are pleased to present the results of our audit of the financial statements of the City of Okeechobee, Florida (the "City") for the year ended September 30, 2014. This report to the Honorable Mayor and City Council summarizes our audit, the report issued and various analyses and observations related to the City's accounting and reporting. The document also contains the communications required by our professional standards. Our audit was designed, primarily, to express an opinion on the City's basic financial statements for the year ended September 30, 2014. We considered the City's current and emerging needs, along with an assessment of risks that could materially affect the financial statements, and aligned our audit procedures accordingly. We conducted the audit with the objectivity and independence that the City expects. We received the full support and assistance of City personnel. At Carr, 'Riggs & Ingram, LLC (CRI), we are continually evaluating the quality of our professionals' work in order to deliver audit services of the highest quality that will meet or exceed your expectations. We encourage you to provide any feedback you believe is appropriate to ensure that we do not overlook a single detail as it relates to the quality of our services. This report is intended solely for the information and use of the Honorable Mayor, City Council and management of the City and should not be used by anyone other than these specified parties. We appreciate this opportunity to work with you. If you have any questions or comments, please contact me at 321.255.0088 or dgoode@cricpa.com. Very truly yours, Deborah A. Goode, CPA Carr, Riggs & Ingram, LLC - 1 - Required Communications As discussed with management during our planning process, our audit plan represented an approach responsive to the assessment of risk for the City. Specifically, we planned and performed our audit to: • Perform an audit, as requested by the Honorable Mayor and City Council, in accordance with auditing standards generally accepted in the United States of America, in order to express an opinion on the City's financial statements for the year ended September 30, 2014; e • Communicate directly with the Honorable Mayor and City Council and management regarding the results of our procedures; • Address with the Honorable Mayor, City Council and management any accounting and financial reporting issues; • Anticipate and respond to concerns of the Honorable Mayor, City Council and management; and • Other audit -related projects as they arise and upon request. -2- Required Communications We have audited the financial statements of the City for the year ended September 30, 2014, and have issued our report thereon dated May 26, 2015. Professional standards require that we provide you with the following information related to our audit: MATTER TO BE COMMUNICATED•RRESPONSE Auditor's responsibility under Generally As stated in our engagement letter dated Accepted Auditing Standards, Government September 23, 2013, our responsibility, as Auditing Standards and Chapter 10.550, Rules described by professional standards, is to express of the Florida Auditor General an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America (GAAP). Our audit of the financial statements does not relieve you or management of your responsibilities. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. Client's responsibility Management, with oversight from those charged with governance, is responsible for establishing and maintaining internal controls, including monitoring ongoing activities; for the selection and application of accounting principles; and for the fair presentation in the financial statements of financial position, results of operations, and cash flows in conformity with the applicable framework. Management is responsible for the design and implementation of programs and controls to prevent and detect fraud. Planned scope and timing of the audit Our initial audit plan was not significantly altered during our fieldwork. Management judgments and accounting Please see the following section titled "Accounting estimates Policies, Judgments and Sensitive Estimates and The process used by management in forming CRI Comments on Quality." particularly sensitive accounting estimates and the basis for the auditor's conclusion regarding the reasonableness of those estimates. Potential effect on the financial statements No such risks or exposures were noted. of any significant risks and exposures Major risks and exposures facing the Plan and how they are disclosed. -3- Significant accounting policies, including critical accounting policies and alternative treatments within generally accepted accounting principles and the auditor's judgment about the quality of accounting principles • The initial selection of and changes in significant accounting policies or their application; methods used to account for significant unusual transactions, and effect of significant policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. • Alternative treatments within GAAP for accounting policies and practices related to material items, including recognition, measurement, presentation and disclosure alternatives, that have been discussed with client management during the current audit period, the ramifications of the use of such alternative disclosures and treatments. Required Communications Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Significant difficulties encountered in the I None. audit Any significant difficulties, for example, unreasonable logistical constraints or lack of cooperation by management. Disagreements with management Disagreements, whether or not subsequently resolved, about matters significant to the financial stateme0ts or auditor's report. This does not include those that came about based on incomplete facts or preliminary information. Other findings or issues Matters significant to oversight of the financial reporting practices by those charged with governance. For example, an entity's failure to obtain the necessary type of audit, such as one under Government Auditing Standards, in addition to GARS. None. None. -4- Required Communications MATTER TO BE COMMUNICATED••RESPONSE Matters arising from the audit that were None. discussed with, or the subject of correspondence with, management Business conditions that might affect risk or discussions regarding accounting practices or application of auditing standards. Corrected and uncorrected misstatements There were no adjustments, either corrected or All significant audit adjustments arising from the uncorrected, as a result of our audit procedures. audit, whether or not recorded by the Plan, that could individually or in the aggregate have a significant effect on the financial statements. We should also inform the Committee about uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented, that were determined by management to be immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Any internal control deficiencies that could have prevented the misstatements. Major issues discussed with management We generally discuss a variety of matters, prior tolretention including the application of accounting principles Any major accounting, auditing or reporting issues and auditing standards, with management each discussed with management in connection with our year prior to retention as the governmental unit's initial or recurring retention. auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Consultations with other accountants In some cases, management may decide to consult with other accountants about auditing and When management has consulted with other accounting matters, similar to obtaining a "second accountants about significant accounting or auditing matters. opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Written representations See "Management Representation Letter" section. A description of the written representations the auditor requested (or a copy of the representation letter). -5- Required Communications MATTER TO BE . ••RESPONSE Internal control deficiencies None. Any significant deficiencies or material weaknesses in the design or operation of internal control that came to the auditor's attention during the audit. Fraud and illegal acts We are unaware of any fraud or illegal acts Fraud involving senior management, the Plan involving management or causing material Administrator or those responsible for internal misstatement of the financial statements. controls, or causing a material misstatement of the financial statements, where the auditor determines there is evidence that such fraud may exist. Any illegal acts coming to the auditor's attention involving senior management and any other illegal acts, unless clearly inconsequential. Other information in documents containing Our responsibility related to documents (including audited financial statements annual reports, websites, etc.) containing the The external auditor's responsibility for information in financial statements is to read the other a document containing audited financial statements, information to consider whether: as well as any procedures performed and the results. * Such information is materially inconsistent with the financial statements; and • We believe such information represents a material misstatement of fact. We applied certain limited procedures to management's discussion and analysis and the required supplementary information ("RSI") as listed in the table of contents of the financial statements that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquires, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. M Accounting Policies, Judgments and Sensitive Estimates & CRI Comments on Quality We are required to communicate our judgments about the quality, not just the acceptability, of the City's accounting principles as applied in its financial reporting. We are also required to communicate critical accounting policies and sensitive accounting estimates. Management may wish to monitor throughout the year the process used to compute and record these accounting estimates. The table below summarizes our communications regarding these matters. ACCOUNTING CRITICAL JUDGMENTS & COMMENTSON QUALITY AREA POLICY .• OF • POLICY APPLICATIONESTIMATE & Other Post- Based on the audit X Management's We evaluated the key Employment procedures we estimate of the factors and assumptions Benefits performed with other in determining they are respect to the City's postemployment reasonable in relation to OPEB Plan, we benefit liability is the financial statements noted that it based on taken as a whole. appears the City healthcare costs accounts for its and employment OPEB liability and assumptions related costs in developed by accordance with all management. A applicable third party actuary standards and utilized these guidelines of GASB. assumptions to calculate the year - The City follows the end liability. provisions of Section P50: Postemployment Benefits Other Than Pensions — Employer Reporting, of the GASB Codification when reporting its OPEB liability and related costs. -7- Accounting Policies, Judgments and Sensitive Estimates & CRI Comments on Quality ON AREA ACCOUNTING POLICYCOMMENTS ., POLICY & APPLICATION Depreciation Based on the audit X Management's estimate We evaluated the key of Capital procedures we of the useful lives of factors and assumptions Assets performed with capital assets is based used to develop the respect to the City's on the historical lives of estimated useful lives in capital assets, we similar assets and determining that they noted that the City market prices. are reasonable in estimates the useful relation to the financial lives of capital assets statements taken as a in accordance with all whole. applicable standards and guidelines of GASB. The City follows the provisions of Section 1400: Reporting Capital Assets, of the GASB Codification when reporting depreciation of its capital assets. Certain financial statement disclosures are particularly sensitive because of their significance to financialstatement users. The most sensitive disclosures affecting the financial statements were: The disclosure of pension trust funds in Note S.B. to the financial statements due to the reported performance of plan assets. The disclosure of Post -Employment Benefit Obligations in Note S.C. to the financial statements since this represents a future liability to the City. Management Representation Letter May 26, 2015 Carr, Riggs & Ingram, LLC 215 Baytree Drive Melbourne, Florida 32940 This representation letter is provided in connection with your audit of the financial statements of the City of Okeechobee, Florida, which comprise the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information as of September 30, 2014 and the respective changes in financial position and the related notes to the financial statements, for the purpose of expressing opinions as to whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission, or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm, to the best of our knowledge and belief, as of May 26, 2015, the following representations made to you during your audit. Financial Statements 1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated September 23, 2013, including our responsibility for the preparation and fair presentation of the financial statements and for preparation of the supplementary information in accordance with the applicable criteria. 2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. 3) We acknowledge our responsibility for 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. 4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 5) Significant assumptions we used in making accounting estimates are reasonable. 6) All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements. Management Representation Letter 7) The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with U.S. GAAP. There have been no such issues. Information Provided 8) We have provided you with: a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters and all audit or relevant monitoring reports, if any, received from funding sources. b) Additional information that you have requested from us for the purpose of the audit. c) Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. d) Minutes of the meetings of City Council or summaries of actions of recent meetings for which minutes have not yet been prepared. 9) All material transactions have been recorded in the accounting records and are reflected in the financial statements. 10) We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 11) We have no knowledge of any fraud or suspected fraud that affects the entity and involves: a) Management, b) Employees who have significant roles in internal control, or c) Others where the fraud could have a material effect on the financial statements. 12) We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial statements communicated by employees, former employees, regulators, or others. 13) We, have no knowledge of instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when preparing financial statements. 14) There are no actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. Government —specific 15) We have made available to you all financial records and related data and all audit or relevant monitoring reports, if any, received from funding sources. 16) There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 17) We have identified to you any previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. 18) The City has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity. -10- Management Representation Letter 19) We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and disclosed to you all laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts or other financial data significant to the audit objectives, including legal and contractual provisions for reporting specific activities in separate funds. 20) There are no violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting, approving and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on noncompliance. 21) There are no — a) Related party relationships and transactions, including revenues, expenditures/ expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties of which we are aware. b) Guarantees, whether written or oral, under which the City is contingently liable. c) Joint ventures with an equity interest in which the City is a participant. 22) As part of your audit, you assisted with preparation of the financial statements and related notes. We have designated an individual with suitable skill, knowledge, or experience to oversee your services and have assumed all management responsibilities. We have reviewed, approved, and accepted responsibility for those financial statements and related notes. 23) The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. 24) The City has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 25) We have followed all applicable laws and regulations in adopting, approving and amending budgets. 26) The financial statements include and properly disclose all component units and other related organizations. 27) The financial statements properly classify all funds and activities. 28) All funds that meet the quantitative criteria in GASB Statements No. 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. 29) Components of net position (net investment in capital assets; restricted; and unrestricted) and equity amounts are properly classified and, if applicable, approved. 30) Provisions for uncollectible receivables have been properly identified and recorded. 31) Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. - 11 - Management Representation Letter 32) Revenues are appropriately classified in the statement of activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 33) Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 34) Deposits and investment securities and derivative instruments are properly classified as to risk and are properly disclosed. 35) Receivables recorded in the financial statements represent valid claims against debtors for transactions arising on or before the balance sheet date and have been reduced to their estimated net realizable value. 36) The City is in compliance with Florida Statute 218.415, local government investment policies, in all respects. 37) Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if applicable, depreciated. 38) Capital assets have been evaluated for impairment as a result of significant and unexpected decline in service utility. Impairment loss and insurance recoveries have been properly recorded. 39) Provision has been made to reduce excess or obsolete inventories to their estimated net realizable value. 40) We believe that the actuarial assumptions and methods used to measure pension and OPEB liabilities and costs for financial accounting purposes are appropriate in the circumstances. 41) We have appropriately disclosed the City's policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available and have determined that net position is properly recognized under the policy. 42) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. 43) We have not completed the process of evaluating the impact that will result from adopting Governmental Accounting Standards Board (GASB) Statements No. 68 through 71, as discussed in Note 6. The City is therefore unable to disclose the impact that adopting these GAS'B Statements will have on its financial position and the results of its operations when the Statements are adopted. 44) With respect to the introductory section ("supplementary information"): a) We acknowledge our responsibility for presenting the supplementary information in accordance with accounting principles generally accepted in the United States of America, and we believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. The methods of measurement and presentation of the -12- Management Representation letter supplementary information have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. Signed: Title: Cit Administrator/ r Title: Finance Director -13- 14400 Exhibit 2 June 2, 2015 CITY OF OIZEECHOBEE (863) 763-3372 FAX (863) 763-1686 AGENDA ITEM REQUEST FORM PLEASE'SUBMIT COMPLETED FORM TO. CITY ADMINISTRATORS OFFICE 55 SE 3RD AVENUE OKEECHOBEE, FLORIDA 34974 NAME: Noel Stephen /Frank DeCarlo ADDRESS: 504 NW 4th Street Okeechobee, Florida 34972 TELEPHONE: (863) 763-3117 FAX: (863) 763-6366 MEETING: REGULAR M SPECIAL ❑ WORKSHOP ❑ DATE: June 2, 2015 PLEASE STATE THE ITEM YOU WISH TO HAVE PLACED ON THE CITY COUNCIL AGENDA: Discussion about Leadership Okeechobee sign to be placed in City - ------ ------------------------------------------------------------------------------- - PLEASE STATE W HAT DEPA RTM ENT(S) YOU HAVE WORKED W ITH: First Graduating_Class of Leadership_Okeechobee --------------------------------------------------------------------- PLEASE',STATE DESIRED ACTION BY THE CITY COUNCIL: Determine -location -and -design -of sign --------------------------------------------------------------------- PLEASE SUMMARIZE PERTINENT INFORMATION CONCERNING YOUR REQUEST AND ATTACH APPLICABLE DOCUM ENTS: ------------------------------------------------------------------------ IF A PRESENTATION IS TO BE MADE1 PLEASE LIMIT THE TIME TO TEN MINUTES UNLESS OTHERWISE APPROVED BY THE MAYOR. SIGNED BY: DATE: May 19, 2015 �oGUE op - ,. Exhibit 3 June 2, 2015 o -' ft 301 South Bronough Street • Suite 300 • P.O. Box 1757 • Tallahassee, FL 32302-1757 - (850) 222-9684 - Fax (850) 222-3806 - www.floridaleagueofeities.com TO: Municipal Key Official FROM: Michael Sittig, Executive Dire,or DATE: May 20, 2015 SUBJECT: 89th Annual FLC Conference — Florida Cities: A Public Conversation VOTING DELEGATE INFORMATION August 13-15, 2015 — World Center Marriott, Orlando As you know, the Florida League of Cities' Annual Conference will be held at the World Center Marriott, Orlando, Florida on August 13-15. This year the theme for this year's conference is Florida Cities: A Public Conversation, which will provide valuable educational opportunities to help Florida's municipal officials serve their citizenry more effectively. It is important that each municipality designate one official to be the voting delegate. Election of League leadership and adoption of resolutions are undertaken during the business meeting. Voting delegates will also adopt the FLC 2016 Legislative Action Agenda because the 2016 Legislative Session will begin early next year. One official from each municipality will make decisions that determine the direction of the League. In accordance with the League's by-laws, each municipality's vote is determined by population, and the League will use the Estimates of Population fiom the University of Florida for 2014. Conference registration materials will be sent to each municipality in the month of June. Materials will also be posted on-line. Call us if you need additional copies. If you have any questions on voting delegates, please call Gail Dennard at the League (850) 701-3619 or (800) 616-1513, extension 3619. Voting delegate forms must be received by the League no later than August 7, 2015. Attachments: Form Designating Voting Delegate President Matthew D. Surrency, Mayor. Hawthorne First Vice President Susan Haynie, Mayor, Boca Raton - Second Vice President Vacancy Executive Director Michael Sittig • General Counsel Harry Morrison, Jr. 89th Annual Conference Florida League of Cities, Inc. August 13-15, 2015 Orlando, Florida It is important that each member municipality sending delegates to the Annual Conference of the Florida League of Cities, designate one of their officials to cast their votes at the Annual Business Session. League By -Laws requires that each municipality select one person to serve as the municipalities voting delegate. Municipalities do not need to adopt a resolution to designate a voting delegate. Please fill out this form and return it to the League office so that your voting delegate may be properly identified. Designation of Voting Delegate Name of Voting Delegate: Title: Municipality of. AUTHORIZED BY: Name Title Return this form to: Gail Dennard Florida League of Cities, Inc. Post Office Box 1757 Tallahassee, FL 32302-1757 Fax to Gail Dennard at (850) 222-3806 or email gdennard@,flcities.com ,or Exhibit 4 RESOLUTION NO. 2015-02June 2, 2015 A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA AUTHORIZING THE EXECUTION AND ACCEPTANCE OF A TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the State of Florida Department of Transportation (FDOT) has requested that the City of Okeechobee, Florida, consider an agreement with the FDOT to transfer the responsibility of maintenance of traffic signal devices within the City of Okeechobee, from FDOT to the City of Okeechobee; and WHEREAS, in return for such responsibility FDOT has agreed to pay compensation to the City of Okeechobee for such maintenance; and WHEREAS, the City of Okeechobee finds that the compensation for maintenance in relation to the responsibility is reasonable and within the capabilities of existing City Public Works Department; and WHEREAS, the City Council of the City of Okeechobee, Florida, believes such an agreement to be in the best interest of the citizens of the City of Okeechobee. NOW, THEREFORE, be it resolved before the City Council for the City of Okeechobee, Florida; presented at a duly advertised public meeting; and passed by majority vote of the City Council; and properly executed by the Mayor or designee, as Chief Presiding Officer for the City: 1. The Mayor is authorized to execute an agreement entitled "Traffic Signal Maintenance and Compensation Agreement" between the City of Okeechobee, Florida, and the FDOT upon terms and conditions set out in said Agreement, attached herewith as Attachment No. 1. 2. That, upon acceptance by FDOT, the City of Okeechobee Public Works Department, shall thereafter, maintain the traffic signal devices within the Limits of the City of Okeechobee at the locations set out in Exhibit A of said Agreement, and amended annually, approved and executed by the City of Okeechobee Director of Public Works Director. 3. That, the term of said Agreement is 20 years as provided; effective July 1, 2015, annual terms of compensation are set forth in Exhibit B of said Agreement, and amended annually, approved and executed by the City of Okeechobee Director of Public Works Director. 4. That, said Agreement is contingent upon annual funding to FDOT by the legislature, the authorization by this Resolution for entry into said Agreement and continued maintenance shall terminate upon notice from FDOT that funding is not available for maintenance during any fiscal year without further action by the City Council. 5. Conflict. All Resolution or parts of Resolutions in conflict herewith are hereby repealed. 6. Severability. If any section, subsection, sentence, clause, phrase or portion of this Resolution, or application thereof shall for any reason be held invalid or unconstitutional by any court of competent jurisdiction, such portion or provision and such holding shall not affect the validity of the remaining portions or applications here. 7. Effective Date. This resolution shall become effective immediately upon its adoption. INTRODUCED AND ADOPTED in regular session this 2nd day of June. 2015. ATTEST: James E. Kirk, Mayor Lane Gamiotea, CMC, City Clerk REVIEWED FOR LEGAL SUFFICIENCY: John R. Cook, City Attorney Resolution No. 2015-02 Page 1 of 9 STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION 750-010-22 TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT OPETRAFFIC RATIONS 04115 Page 2 of 5 incurred due to traffic impacts to mast arms, which reimbursements will be processed after the Department receives a properly completed. and supported invoice from the Maintaining Agency. The Department will pursue reimbursements from individuals and/or the third parties who cause damages to mast arms and are liable for replacement/repair costs. Failure to perform preventative maintenance after notification of an inspection deficiency will result in the Maintaining Agency being responsible for the corrective actions. If spot painting or any other described preventative maintenance is not carried out, there shall be a 25% retainage of the annual compensation amount for the affected signal locations until the preventative maintenance is performed. For each month subsequent to the expiration of the 90-day notice given to the Maintaining Agency that preventative maintenance deficiencies exist, 1/12'^ of the annual compensation amount for the affected signal locations will be forfeited up to 25% of the annual compensation amount. In the case of a total paint failure on a mast arm installed prior to the date of this Agreement, the Department will fund the cost of repainting. This does not include any mast arm that was installed with a separate mast arm painted finish agreement. The terms of that agreement will control. 6. Periodic maintenance includes but is not limited to: repair of cracks in the mast arm structure; removal and/or repair of grout pads; resetting of anchor bolts; and repair or replacement of deteriorated anchor bolts and nuts. For any new mast arm installations after the date of this Agreement, if a Maintaining Agency requests a painted mast arm, the Maintaining Agency agrees to perform all required periodic and preventative maintenance. Any periodic maintenance performed on the mast arm structure by the Maintaining Agency needs Department approval prior to commencement of work and shall be performed within 90 days unless under an emergency situation. Any and all work performed by the Maintaining Agency must conform to the current Department Standard Specifications for Road and Bridge Construction as applicable. Mast arms that the Department determines to be at the end of its useful life will be replaced by the Department so long as documented preventative maintenance and any applicable periodic maintenance was satisfactorily performed by the Maintaining Agency. The Table below summarizes the roles of the Maintaining Agency and the Department with regard to preventative and periodic maintenance of mast arms: Maintainin Agency Florida DOT Preventative maintenance of all mast arm structures Periodic maintenance of all mast arm structures (except for any new painted and existing painted structures with signed separate Agreement) Periodic maintenance of structures (for any new painted' and existing painted structures with signed separate Agreement) Damage repair or replacement of structures Compensate Maintaining Agency for damage repair or replacement of structures Replacement at end of life cycle of the structure 7. The Department will reimburse the Maintaining Agency for costs incurred due to traffic impacts to traffic signal controller cabinet assemblies, traffic signal battery backup, UPS cabinet assemblies, pedestrian flashing beacons, strain pole repair or replacement, and all devices shown in Exhibit A, if the Maintaining Agency is not successful in recovering damage costs from responsible parties. The Maintaining Agency will be responsible for pursuing reimbursements from individuals and/or the third parties that cause damages. However, if the Maintaining Agency is not successful in recovering damage costs from responsible party(ies) Within 180 days from the occurrence of damage, the Department will pursue reimbursements from individuals and/or the third parties who cause damages and are liable for replacement/repair costs to the traffic signal controller cabinet assemblies, traffic signal battery backup, UPS cabinet assemblies, pedestrian flashing beacons, strain poles, and all devices shown in Exhibit A. Applicable reimbursements will be processed after the Department receives a properly completed and supported invoice from the Maintaining Agency. 8. The Maintaining Agency may remove any component of the installed equipment for repair or testing; however, it shall only make permanent modifications or equipment replacements and only if the equipment provided is capable of performing at minimum the same functions as the equipment being replaced. The Department shall not make any modifications or equipment replacements without prior written notice to and consultation with the Maintaining Agency. a. The Maintaining Agency shall implement and maintain the timing and phasing of the traffic signals in accordance with the Department's timing and phasing plans, specifications, special provisions, Department re -timing projects, and the Departments Traffic Engineering Manual. The Maintaining Agency shall obtain prior written approval from the Department for any modification in phasing of signals and flash times (where applicable). Signal Systems timings (cycle length, split, offsets, sequence) are considered operational changes and may be changed by the Maintaining Agency to accommodate changing needs of traffic. The Maintaining Agency may make changes in the signal timing provided these changes are made under the direction of a qualified Professional Engineer registered in the State of Florida. The Maintaining Agency shall make available a copy of the timings to the Department upon request. The Department reserves the right to examine equipment, timing and phasing at any time and, after consultation with the Maintaining Agency, may specify modifications. If the Department specifies modification in timing or phasing, implementation of such modifications will be coordinated with, or made by, the Maintaining Agency. All signal timing and phasing records shall be retained by the Maintaining Agency for at least three (3) years, and will be made available to the Department upon request. STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION 750-010-22 TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT OPETRAFFIC RATIONS 04115 Page 4 of 5 19. The Department's obligation to pay is contingent upon an annual appropriation by the Florida Legislature. 20. An entity of affiliate who has been placed on the discriminatory vendor list may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity. 21. A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may, not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, Florida Statutes, for CATEGORY TWO for a period of thirty-six (36) months from the date of being placed on the convicted vendor list.' 22. The Department shall consider the employment by any contractor of unauthorized aliens a violation of Section 274A(e) of the Immigration and Nationality Act. If the contractor knowingly employs unauthorized aliens, such violation will be cause for unilateral cancellation of this Agreement. 23. The Maintaining Agency may be subject to inspections of Traffic Signals and Devices by the Department. Such findings will be shared with the Maintaining Agency and will be the basis of all decisions regarding payment reduction, reworking, Agreement termination, or renewal. If at any time the Maintaining Agency has not performed the maintenance responsibility on the locations specified in the Exhibit A, the Department has the option of (a) notifying the Maintaining Agency of the deficiency with a requirement that it be corrected within a specified time, otherwise the Department shall deduct payment for any deficient Traffic Signal(s) and Device(s) maintenance not corrected at the end of such time, or (b) take whatever action is deemed appropriate by the Deportment. Any suspension or termination of funds does not relieve any obligation of the Maintaining Agency under the terms and conditions of this Agreement. 24. The Department shall monitor the performance of the Maintaining Agency in the fulfillment of the agreement. The Maintaining Agency shall submit an annual Report prior to June 30 of each year detailing the following: a. Critical Detection device malfunctions: Critical detection is defined as the detection on side -streets and in left turn lanes on the main streets, and all pedestrian/bicycle detection. Repairs to the side -street and main street left turn detections shall be made within sixty (60) days of discovery and repairs to the pedestrian detection shall be made within 72 hours after notification. All these events shall be logged into the annual report. If repairs cannot be performed within 60 days, the agency shall document the reasons why. Discovery of such events shall be logged into the annual report. The Maintaining Agency shall ensure that 90% of all critical detectors systemwide are operating properly at all time. Any time the level drops below 90%, the Agency would have ninety (90) days to correct the situation. A 5% retainage of the total annual compensation amount (as shown in Exhibit A) will be withheld whenever the 90% critical detection requirement is not met within the 90-day period. b. Traffic signal preventative maintenance inspections: All traffic signals shall receive at least one (1) minor preventative maintenance inspection, preferably two inspections, within a twelve (12) month period. Preventative maintenance inspection shall include verification that all detection is working, the signal is cycling properly, the ventilation system is functioning and filters are clean. Basic traffic cabinet maintenance shall also verify power feed voltages, verify that the vehicle and pedestrian indications are functioning properly, test the effective functioning of pedestrian push buttons, and check hinges and door locks. At least one (1) conflict monitor test shall be performed during a twelve (12) month period. Each test is to be documented and included in the annual report to the Department. The inspection report should note the location, date of inspection and any items noted. If the traffic signals do not receive at least one (1) minor preventative maintenance inspection during a twelve (12) month period, there shall be a 20% retainage of the annual compensation amount for the affected signal locations until the preventative maintenance inspection is made. If not performed within the state's fiscal year, the 20% retainage of the annual compensation amount for the affected signal locations will be forfeited. c. For any traffic signals that are interconnected with telecommunications and their real-time operation is electronically monitored via software by personnel at a central location and are therefore receiving the higher compensation amount as described in Exhibit B, the name(s), titles of those monitoring those intersections, and the location of the central monitoring facility(s) are to be documented and contained in the annual report submitted to the Department. d. In addition to the above requirements, if at least 50% of the traffic signals are not inspected and if at least half of the critical detection requirements as stated in 24a are not met, the Department will retain an additional 25% of the remaining compensation amount. *V. i0of c m E 0 0 o 0 0 0 0 0 00 0 0 0 z ° m p o c 0 v o o VO y � 0 0 0 0 0 C0 ? 0 0 0 a ni ni rri .ti vi " N E o „ u C 'c VI N VI V/ u! N N V/ V/ V) V) H N V/ V) N V/ ut N V) VI V• N V) VI VS Vl V) VI V/ N m a N .- _ n 22Na W � `u C a E y N L W J > U p F N Q r m' > An m c w 2 ` a0i c m m c c c o m L � � A u u W m 6 C E W ut c c o o n w m m w o G = o Q u F m c x m w O N C W 0 O F C m o 0 0 0 0 ^�+C> c ai m m ao m m V} N VY V1 V/ N N m 0 LL w N 0 `m L 0 o co m NN C O W W c m d 3 m a>> rA d n no��x x a a F ` 3 m a~o N n cc cc h N 2 w w V1 H m c w n o c C N � y iCp O Q> G e\1 lJ w n C c ui ° m a m iooc m m aD mm > 7 7 w E tc ro v��n0000 .-� n C u W � H ' cc VI STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION •m✓ 750-010.22 TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT TRAFFIC OPERATIONS 04/15 Exhibit C Page 1 of 1 EXHIBIT C TRAFFIC SIGNAL MAST ARM CHECKLIST Traffic Signal Mast ,Arm Checklist • Foundation, including condition of grout pad if present • Anchor bolts and nuts • Base plate' • Base plateconnection to vertical member • Hand hole and hand hole covers and inside of vertical member by removing hand hole covers • Connections between vertical and horizontal members • Any member splices • Attachments • Member caps �. CITY OF OKEECH For June 2, 2015 Council Meeting TO: Mayor & City CouncilA I 1,, 5 BEE MEMORANDUM FR: City Administrator qC6* mith ',. L�ir1• I'is,.ec:fin� Spr.fi( (.relitrdlJ RE: AGENDA ADDITION 90 day extension of Wk Comp related benefit paying Fire Lt. Phil Conroy dill between Wk Comp pay and normal' pay as provided for by Personnel Code Employee Benefits section (pg 13) Job Connected Injury Benefits requiring City Council to approve said extension. Date of Accident (DOA) — December 8, 2014 Date of first Wk Comp City -benefit expiration - March 8, 2014 (90 days after DOA) approved 3/17/15 Please consider a motion to extend an additional 90 day extension as provided for by the Code wherein 'the employee will receive the difference between what the Worker's Compensation benefit pays and his/her normal salary...' 1June 2015 To: Administrator Whitehall Mayor Kirk/Council Members From: Chief Smith (Fire Dept.) Re: 90 Day extension request for fire department employee in relation to workers compensation benefits This request is in reference to a fire department employee who was injured (back) while working on the scene of a motor vehicle accident. The Firefighter is approaching the conclusion of the second 90 days provided by the City for the supplemental compensation to the workers compensation benefits. The firefighter has improved and continues to work a light duty schedule doing fire inspections. The Department Head requests approval to continue the supplemental benefit supplied by the City of Okeechobee in order for the firefighter to receive full pay (contingent to policies of the City and the Finance 'Department). The last report from the employee's doctor advised that Firefighter Conroy is expected to be released to full duty on the next doctor's appointment scheduled on the 6th of June 2015. In the event that Firefighter'Conroy should not get released this department requests extension of benefits. Respectfully, Herb Smith Fire Chief The U dates! � Cn 15rpcn �� r. ti from the City Administrator's Desk LL 55 SE 3rd Av., Okeechobee, FL 34974 'k1915°° City Council meeting OLJune 2, 2015 • CRA — Jason Nunemaker, Fellsmere City Manager is on the Agenda to discuss their communities experience w/ a CRA and a TIF District. • CRA — Main Street is on the Agenda to discuss planning an organizational approach to the CRA in the downtown area. • Parks — In light of our discussion about CRAs and funding for parks/downtown improvements, I want to remind you that the City reed $405, 000 as a judgment settlement in the FDOT taking of land. Of that, we (FDOT & City) estimated $48,000 for the `cost -to -cure' issues previously decided upon and $188,900 in landscaping improvement that were anticipated to be made by FDOT which was moved to the City's responsibility during mediation... for a total of $236, 900 in improvements. Naturely, there's many improvements to be made that are defined on the cost -to -cure side, but there remains a substantial amount left to spend. Would the City be interested in developing a professional plan for rejuvenation of the parks? • Top of the Lake Spirit Festival & coffin races Main St en the Aelds - next meeting - request an Oct 31 — close Park Street, 3rd & 4t" Av (park 3 closed) for the event which apparently includes a beer garden. Note: the trunk/treat project normally is the same time/same location but they are making arrangements to move farther west (as per the City Clerk). • Leadership sign in City Hall park — Noel Stephen/Frank DeCarlo on Agenda to discuss placement or the previously discussed chamber Leadership Class sign. As you recall, back in Dec they approached the City with a design (attached) able to hold civic groups' placards. • FLC Annual Conference in Orlando Aug 13-15 — Normally we have a representative at this conference and the Council determines whom is the voting delegate. The FLC no longer requires a designation Resolution, however it's on the Agenda to discuss. • FDOT Signal Maintenance Agreement on Agenda —The Council has been asked to approve two versions within the last year and now a third, as they try to perfect the language soliciting sate -wide input. The latest proposal increases the potential reimbursement to about $16,000. In Aug we rec'd $9000 in reimbursement. For comparative purposes, the City rec'd — 2007 - $7200, 2011 - $8300. 1 asked DPWks Allen to review ... his notes: There are significant changes to the FDOT Traffic Signal Maintenance and Compensation agreement from the previous agreement, however in contrast to the amended agreements that FDOT has recently proposed, this new agreement is more balanced. As you remember, FDOT made an effort to shift responsibility almost entirely to the maintaining agencies for signal mast arms. This latest agreement maintains a shared responsibility for mast arms with the maintaining agency taking the responsibility for preventative and periodic maintenance with FDOT covering replacement at the end of the life cycle. Page 1 612115 Activity Rpt (DPWkr!� DOT Signal Maint Agreement analyshwCont'd) In reviewing the old and proposed agreements, I would like to highlight the following: • The proposed funding from FDOT is increased significantly, from $9,713.71 for FY 15 to $16,264.00 in FY 16 • Mast arm maintenance is more clearly defined o FDOT will conduct a structural inspection of all mast arms every 60 months. Maintaining agencies have 90 days to address any preventative and periodic maintenance deficiencies identified o New painted mast arms installed after this agreement will either have a separate maintenance agreement or be subject to specific maintenance tasks outlined in the proposed agreement. There are two substantial changes in the language addressing mast arm structures that are damaged in an accident where the P party involved does not compensate the city for the damage. o The old agreement stated that FDOT "intends" to reimburse the maintaining agency for replacement of mast arms damaged in an accident, the new agreement states that FDOT will reimburse the maintaining agency. o The new agreement also sets a deadline of 180 days. If the responsible party does not provide compensation for the damage in 180 days, FDOT will reimburse the maintaining agency and then seek compensation from the 3rd party. • The proposed agreement sets specific penalties for required maintenance that is not performed by the maintaining agency such as a 25% retainage of the compensation of a mast arm that requires spot painting if the painting is not performed. • The proposed agreement has new specific reporting and monitoring criteria that the City would be required to meet. o The City would be required to submit detailed annual reports of maintenance activities. Specific maintenance tasks are included in the agreement. o The City would be required to provide records of maintenance costs incurred under the agreement and provide those records to FDOT upon request. o Any timing changes made to the signals must be made under the supervision of a professional engineer. • The term of the agreement is 20 years versus the life of the installed equipment as specified in the old agreement. • Language has been added to the new agreement allowing FDOT to take control of signals key critical corridors as determined by FDOT. Page 2 612115 Activity Rpt (DPWI�PFDOT Signal Maint Agreement analysrwrc,ont'd) I do not have the major reservations that I had with the previously proposed agreement, particularly mast arms. The new agreement appears to be much more balanced, particularly mast arms. I do have two recommendations regarding signal maintenance that the City should consider along with the proposed agreement. 1. The City should consider establishing an accounting method for tracking signal maintenance and repair costs that would allow the City to easily supply FDOT with costs associated with this agreement. Additionally, similar accounting methods should be established for all maintenance tasks performed by the City that are FDOT funded. 2. The City should strongly consider contracting signal maintenance to a qualified signal maintenance company. Signal maintenance is becoming increasingly technical and the city lacks the required expertise. Given the small number of signals that the City maintains, it is becoming difficult to perform the required signal maintenance in house. Additionally, the potential liability for the signals is very high should a signal related accident occur. • QUA concerns — Mayor Kirk and I met w/ Steve Nelson an reviewed the OUA issues mentioned in my last report. We suggested that he gather support from the Board and seek legal findings on ideas that included allowing ample time for residents to pay the connection fees, which he estimated averaged $6000, and the perhaps a one-year moratorium on fees, followed by a mandated connection. 1. Requesting a quorum is 315 (vs. 415) — the City considered this in Mar 2011 and it failed to pass. 2. a) Requiring mandatory connection to already available wtr/swr mains: Nelson supplied me w/ the County's Devel regs (Page V11-54-5) Utilities- A. 2. wherein connection to the wtr/swr shall be required when such system is available. b) as for the City regs on this matter, the Comp Plan states for new development they must connect and for pre-existing, only when there's an ownership change. The Code, to the best of my recollect'n, doesn't echo the Comp Plan ... it's silent on the matter. • Garbage rates —As indicated in the last report, the rates are expected to be slightly lower and will have the appropriate adopting Resolutions at the July 21St meeting, including the commercial rate matrix Resolution. • SCOP GRANT APPROVED $57,750 — Street reparation (& storm sewer) at SW 2 Av & 8" St. Again, the timeline that FDOT arrived at: Design plans contract to begin on or before July 1", 2015 and design plans to be completed by December 31 ", 2015 Actual construction shall begin no later than March Is', 2016 and be completed by December 31, 2016 (the Agreement end date) Page 3 612115 Activity Rpt Cont'd'"' • Playground proposal for Park 6 — I sent an email to J D Mixon last Tuesday, 5/26/15, indicating that we need to start working on a site plan which might include additional room for benches/landscaping and a parking plan ... but haven't heard anything back. • FEMA flood map (FIRM) and required Code changes. Floodplain Management (FM) ordinance 2" rdg last scheduled for 6/16/15 and then to be submitted to FL Dept of Emergency Management (DEM). • Legislative issues — Extended session is scheduled for June 1 — June 20. City Atty: •' Potential downtown parking lot, SW Park & SW 4 Av — At the May 19tn meeting Atty cook was authorized to meet w/ Haines & Susan Williams to make an offer based on D R Willson Land Co, 455 Hwy 441 SE, submitted commercial appraisal for the parcel at the market value of $43,000. • Railroad xinq improvement at NW 9tn Av City invoiced — Atty Cook's 4/27/15 letter about why the City is refusing to pay for the railroad crossing at NW 91n Av & 9tn St drew a call from CSX who implied that the matter is negotiable (this Friday, 5/15/15 at noon)... (Translation: they still expect the city to pay something). Atty Cook reed a 3110115 CSX response to his inquiry about the new RR crossing at NW 9th Av and the price tag-$38,000+/- (100% City payable). John and 1 have discussed what might separate the City from the commitment is that in '92 the City was looking for a smoother surface and perhaps agreed to pay a premium for that, hence the "rubber" surface. CSX did not reinstall a rubber surface at the location this time. They refer to a 1992 Agreement and a $16k submittal by the City in 1992 as evidence of the City's commitment. The only commitment we are able to get out of CSX is that they expect the cost to be less than the estimate and that they would be willing to stretch the $39k over several months. City Clerk: • Centennial Celebration — Voting Members: Advisory Members: Staff. Magi Cable, Jeanne Enfinger Justin Domer Brian Whitehall, City Administrator Shade Turgeon, John Williams Katrina Elsken David Allen, Public Works Director Dawn Hoover, Vice Chair Donna Gaiser Lane Gamiotea, City Clerk J.D. Mixon, Chair Susan Giddings Antoinette Rodriguez -(Resigning - no longer Chamber of Commerce affiliated) General Services / Planning Board: • Planning Bd — May 21 meeting- The Historic preservation ordinance was quickly reviewed but has been rescheduled for review at the next meeting. Finance: • Auditors fye 9/30/14 financial report on Agenda. Just had a post -audit exit interview last week and the hard copies should be enclosed in the packet. Page 4 6/2115 Activity Rpt Cont'd`Ap* r.r Fire/Code Enforcement: • Smoke Alarm initiative — City/County seeks a $68k grant w/ a 5 % match ($1700- City) to purchase some 2000, 10-yr battery operated smoke/CO detectors. The grant ap is $250 for ea entity and, according to Smith, is pretty much a `slam dunk'. Chief is investigating other communities' methodology, but it sounds promising and is certainly a great cause for our people to involve themselves in. • Sign Ord issues Signage enforcement - The proliferation of banners being used as signs is one of the issues. Banner means a sign having letters, illustrations or ornamentations applied to paper- or fabric of any kind, with only such material for a backing. A flag is not a banner. A banner is an exempt sign requiring no permit and businesses are using the 'temporary' banners as permanent, cheaper alternatives. Another cheaper alternative that has become a problem that 1 believe the Council may have inadvertently passed with the sign ordinance is the categories of `exempt signs' (no permit required) is the sticky -back or signs inside of a window (Sectn 90-567 (10): d. Window signs affixed to the interior of windows which are visible from the exterior. The area of such window signs shall not be counted as part of the allowable area for building signs. e. "Sticky -back" window coatings or thin coverings affixed to the outside of windows by an adhesive shall not be counted as part of the allowable area for building signs. Public Works: • Hiring summer part-time help — Accepting applications for three (3) part- time summer personnel each working 24 hours/week budgeted from May to Sep. • 441/70 intersection project — The crosswalks are suppose to be installed the week of June 1. There was a slight change on the design, after speaking with the subcontractor. Our original border called for a 4-brick design (two outside perpendicular and two inside horizontal) but the border would look obtuse and leave a smaller crosswalk, especially on the side streets. So, the new border is a simple square black brick. The crosswalk brick are `brick red'. The $110,209 City funded project covers all the project area SR 70 side streets as well as the main intersection. • Trees for landscaping available — Marcus Lowe, NW 59th Terrace, has a variety of Queen and Washingtonian palms avail from a former tree farm he is clearing and at the OUA facility at the west side of the water treatment plant, a former tree/landscape business that has the same varieties. We plan to move on these trees in the near future. • CANAL CLEANING PROJECT: A. GRANT APPROVED - Canals - Legislative Grant $100k - Agreement w/ DEP — Executed the Grant Agreement for the water conveyance project. The grant expires Nov 5. The City requested $450k but was only funded to the $100k. For the 2015 legislative requests, the City again requested $450k. Page 5 6/2/15 Activity Rpt Cont'd jeanal Cleaning project grant funding) r.. B. GRANT— Canals — SFWMD grant— On 11118114 submitted a grant ("cooperative funding Program CFP') application for additional funding ($185k) to assist the City in completing the canal cleaning project ... have nothing new to report. The Part I applications/projects will be presented to our Governing Board to determine which projects should be further considered for FY2016 cost sharing in Part 2. Applicants reaching Part 2 will be requested via a second application to submit detailed project information, timelines, and funding commitments and benefit quantifications. CENTENNIAL PARK PROJECT. - I mentioned in my last report that we were given a new proposed Engineering Agreement from Culpepper & Terpening, as part of a continuing, underlying, continuing Services Contract, for development of the park, from geotech (probing, soil test/etc), construction plans, project permitting ( SFWMD, DEP), through the bidding process.. I've spoken to Steve Doyle (C&T) and he forwarded the following: 1. We added more chickee huts to the plan. 2. The large pavilion shall be built as a chickee hut. 3. Metal roofing is acceptable for the restrooms. 4. The proposed restroom was rotated to make it safe for moms to watch the playground, restrooms and parking lot. 5. Fencing for playground area limited to just the perimeter of the playground (edge of sand or mulch). The chickee huts are left outside of the fenced area. Only one means of egress to the playground, again for child safety. 6. Councilman O'Connor wanted to know why the bio-swale had been reduced in length. Note: OUA had encroached on the western property line causing us to reduce the bio-swale area. 7. Installed trees between the parking lot and OUA to mask the utility infrastructure that is encroaching. 8. Councilman O'Connor wanted to know why the beach is not on the corner of the parcel. We explained the beach access on the north east side of the bank only. A section of beach on the corner is not desirable. The flowing canal would scour the bank and waste the beach sand. 9. Stormwater - We show inlets on the neighbored road right of way to illustrate the offsite collection of stormwater. Explained the stormwater routing for the offsite stormwater flow from the community and how it will travel thru the park Explained the function of the baffle box and the outfall location and the need to maintain the existing outfall. 10. The pier and gazebo had been put back onto the plans. The piers/gazebo was shifted north to avoid the potential obstruction for boaters exiting the southern canal. 11. Councilman O'Connor suggested no lighting and if lighting was considered, then use wood poles with halogen lights. Note: This should be discussed when we sit down to review the latest plan set. Page 6 612115 Activity Rpt Cont'd"tCentennial Park) 1420 CENTENNIAL PARK GRANT FUNDING: A. FWC - GRANT- Centennial Park (fka Taylor Creek Park) -grant application As mentioned prior hereto, in we met w/FWC reps Steve Gornak & Beacham Furse along with Stef Matthes, C&T and DPWks Allen and reviewed the grant status and coordination of C&T activities to date meshing w/FWC funded (reimbursement) services. I believe 1 mentioned that C&T essentially finished surveying and that info was sent to FWC...no additional surveying is needed from FWC. After June (new fly, assuming funding) FWC plans on reimbursing the bank stabilization ($35k) and bio-swale exc ($4k), and various plantings ($15k). B. FL DEP GRANTS - Centennial Park grant application — As reported prior hereto the City reed rejection letters from the FL DEP for both the TMDL (total max daily load) and Sect'n 319 grants. I reed a completed draft that we anticipate submitting. The new application info was prepared after a conf call w/ Connie Becker, DEP. The new TMDL grant funding, if approved, timeline: 2015 summer— submittal - award notification 2015 Sept — EPA approval of plans 2016 early - City advertise/award 2016 July— construction commence 2016 Dec, 2017 Jan — figure 6 months to complete construction Background. TMDL Water Quality Grant App for $367, 260 of which requires a 50 % match ($183, 630). Section 319 calls for a $367k grant and a $147,052 (409,o) match. • Finis • Este es el final • C'est la fin Page 7 From: 111191201A 16:16 #795 P-0021003 A- il ti 71 Lrk