2018 Comprehensive Annual Financial Report

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this report. This report, together with the accounting and budgeting systems, have been designed to conform to the standards set forth by the Governmental Accounting Standards Board and the American Institute of Certified Public Accountants. Fund structure has also been designed to comply with the legal requirements of the various revenue bond covenants and resolutions. MAJOR INITIATIVES During fiscal year 2018, several significant actions occurred within the City that will have lasting impacts going forward. • Smart Meter Technology - The City applied for, and was awarded, a low interest rate loan from the Florida Department of Environmental Protection to study the need for (Phase 1) and possibly the design of (Phase 11), Advanced Meter Infrastructure (AMI) and Automated Meter Reading (AMR). The program will assist the City in evaluating and planning for the most appropriate smart meter technology and infrastructure for the City's utility system. The Study, Phase 1, is expected to be complete in the Spring of 2019. Depending of the results of the study, the City may move into Phase 11, Design. • Police Community Response Team — Casselberry applied for and was awarded a Department of Justice COPS grant. The grant makes possible the hiring of three additional police officers. With this capacity the City will deploy a new squad called the Community Response Team (CRT). The CRT will work varying hours and will serve to troubleshoot nuisance problems ranging from traffic to burglaries and drug enforcement. • New Park Addition — The City Commission recognizes that the City does not have sufficient park land to meet its own standards as expressed in the Comprehensive Plan based on the City's growing population. Ten acres of undeveloped land was withdrawn from surplus property status and re -zoned as Recreation/Open Space. It will be a new, active park to serve residents on the north end of the City. • Gee Creek and Howell Creek Grant — Gee Creek and Howell Creek are essential to convey heavy rainfall between lakes and ultimately to the St. Johns River. The City was awarded a grant from the National Resources Conservation Service in the US Department of Agriculture. The grant will fund erosion control improvements that will also protect adjacent private property interest. It is in design and will be constructed in 2019. • Casselton Drive Improvements — The City has planned improvements along Casselton Drive that include road narrowing and reconstruction, bike lanes and a linear park with wide sidewalks along its length. The park will have enhanced landscaping, canopy trees and park amenities. Also, the project will provide for improvements to water and sewer mains and stormwater infrastructure. The construction contract was awarded in 2018 and will be completed late in 2019. DEBT ISSUES The City's new debt issues in FY 2018 pertained to debt issuances for capital leases. The City financed the purchase of generators, pumps, several trucks and police vehicles, all fully equipped, through a capital lease agreement with SunTrust Bank. The total principal increase in lease debt for FY 2018 was $1,345,304 and is financed over three to five years. FISCAL POLICIES The City's policy applicable to the General Fund and the Water and Sewer Utility Fund is to preserve unrestricted fund balance (General Fund) or net position (Water and Sewer) above 25% of operating expenses excluding capital outlay, transfers and debt. Long-range forecasts have been developed and relied on in budget planning to assure that fund balance is preserved and that recurring revenues closely match recurring expenses. In accordance with GASB 68, the City records a net pension liability related to the City's pension plans. Net pension liability represents the present value of projected benefit payments for current and active employees to be provided through the cost-sharing defined benefit pension plans that is attributed to those employees' past periods of service, less the amount of the pension plan's fiduciary net position. The City's share of pension expense for FY 2018 increased $665,443 related to the Police