21-3231 - Comprehensive Annual Financial Report FY 20

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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 2020 decreased by $562,126 related to the Police Officers' and Firefighters' Pension Plan liability and increased $723,207 related to the Florida Retirement System liability. This information is presented in the Government -Wide Statement of Activities and the Proprietary Statement of Net Position. Additional information is provided in Note 10 of the financial statements, FIDUCIARY OPERATIONS The City has a fiduciary responsibility for a self-directed deferred compensation plan, which allows employees to defer a portion of salary for future years. The City also has a fiduciary responsibility for a Police Officers/Firefighters Pension Plan organized under F.S. Chapters 175 and 185 that began operations January 1, 1996. This Plan is a cost-sharing defined benefit, public retirement system, and a component unit (reporting as a Pension Trust Fund) of the City's financial reporting entity. Both the employer and the employee contribute to this Plan. Currently, there are 74 active participants and 28 inactive plan members or beneficiaries receiving benefits. The fair market value of the plan's assets at the close of the fiscal year are $30,645,698 and the plan is 102.45% funded. OTHER POST EMPLOYMENT BENEFITS (OPEB) Casselberry does not pay for any direct post employment benefits to retirees; however, State law allows retirees to elect to remain on the City's health plan at the same cost as regular employees. The inclusion of retirees in the group plan is considered to add to the overall cost to provide the benefit and create a future obligation. This future implicit benefit is required to be actuarially measured and disclosed. OPEB benefits are funded on a pay -as -you go basis. Additional information is provided in Note 9 of the financial statements. STATUTORY REQUIREMENTS - INDEPENDENT AUDIT Florida Statutes require the City's financial statements to be subjected to an annual examination by an independent Certified Public Accountant. Those provisions have been satisfied and the opinion of the independent accountant is included. CERTIFICATE OF ACHIEVEMENT PROGRAM The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Casselberry, Florida for its financial report for the fiscal year ended September 30, 2019. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. vii