A G E N D A - Green Cove Springs, Florida · a g e n d a green cove springs city council 321 walnut...

A G E N D A

GREEN COVE SPRINGS CITY COUNCIL321 WALNUT STREET, GREEN COVE SPRINGS, FLORIDA

REGULAR SESSIONTUESDAY, JUNE 18, 2019 – 7:00 PM

ANYONE WISHING TO ADDRESS THE CITY COUNCIL REGARDING ANY TOPIC ON THIS AGENDA IS REQUESTED TO COMPLETE A CARD AVAILABLE AT THE CITY CLERK'S DESK. SPEAKERS ARE RESPECTFULLY REQUESTED TO LIMIT THEIR COMMENTS TO THREE (3) MINUTES.

THE CITY COUNCIL PROHIBITS THE USE OF CELL PHONES AND OTHER ELECTRONIC DEVICES WHICH EMIT AN AUDIBLE SOUND DURING ALL MEETINGS WITH THE EXCEPTION OF LAW ENFORCEMENT, FIRE AND RESCUE OR HEALTH CARE PROVIDERS ON CALL. PERSONS IN VIOLATION MAY BE REQUESTED TO LEAVE THE MEETING.

Invocation & Pledge of Allegiance to the Flag

Roll Call

Mayor to call on members of the audience wishing to address the Council on matters not on the Agenda.

AWARDS & RECOGNITION

1. Recognition New City Clerk, Erin West.

2. Introduce City Interns Laura Romito Finance Cody Ackerman IT Hannah Grimm Storm Water Jack Taylor GIS Mary Jane Lundy

PUBLIC HEARINGS

1. First Reading of City Ordinance No. O092019, an Ordinance amending City Code Section 117, Article 1 "In General" to include a Future Land Use and Zoning Compatibility Table in Section 1172(c); include a Permitted Use Table in Section 1173; and include a Lot Requirements Table in a new section, 1176. Michael Daniels

CONSENT AGENDA ALL MATTERS UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE BY THE CITY COUNCIL AND WILL BE ENACTED BY ONE MOTION IN THE FORM LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION ON THESE ITEMS. IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND WILL BE CONSIDERED SEPARATELY. BACKUP DOCUMENTATION AND STAFF RECOMMENDATIONS HAVE BEEN PREVIOUSLY SUBMITTED TO THE CITY COUNCIL ON THESE ITEMS.

1. City Council Approval of Minutes from 4162019 Regular, 4162019 Special, 572019 Regular, and 572019 Special Council Meetings. Erin West

AGENDAJune 18, 2019 of 3

2. City Council approval of City of Green Cove Springs External Social Media Policy. Tiffanie Reynolds

3. City Council approval to declare law enforcement items listed on Exhibit “A” as surplus and to dispose of according to approved methods. Scott Schultz, Mike Null

4. City Council approval of, and authorization for the Mayor to execute associated documents for, a Request For Inclusion (RFI) to the Florida Department of Environmental Protection (FDEP), Drinking Water State Revolving Fund (SRF) for $356,800.00 for the design of capital improvements to the City's Water System Mike Null, Scott Schultz

5. Approval of the third extension of the exisiting professional services contract for Engineering Services, for FY 2019/2020 Laurie Copeland, Mike Null

COUNCIL BUSINESS

1. City Council designation of Voting Delegate and Resolution Information for the 93rd Annual Florida League of Cities Conference in Orlando, Florida on August 1517, 2019. Erin West

2. City Council discussion and approval of revised economic development approach to Electric system infrastructure improvements for large customers. Mike Null, Steve Kennedy

3. City Manager and City Attorney Reports and/or Correspondence. 4. City Council Reports and/or Correspondence. Adjournment

The City Council meets the first and third Tuesday of each month beginning at 7:00 p.m., unless otherwise scheduled. Meetings are held in City Hall at 321 Walnut Street. Meetings are livestreamed over the internet. Video and audio recordings of the meetings are posted on the City's website at www.greencovesprings.com.

The City may take action on any matter during this meeting, including items that are not set forth within this agenda.

In accordance with Section 286.26, Florida Statutes, persons with disabilities needing special accommodations to participate in this meeting should contact the City Clerk’s office no later than 5:00 p.m. on the day prior to the meeting.

Public Participation: Pursuant to Section 286.0114, Florida Statutes, effective October 1, 2013, the public is invited to speak on any “proposition” before a board, commission, council, or appointed committee takes official action regardless of whether the issue is on the Agenda. Certain exemptions for emergencies, ministerial acts, etc. apply. This public participation does not affect the right of a person to be heard as otherwise provided by law.

Exparte Communications: Oral or written exchanges (sometimes referred to as lobbying or information gathering) between a Council Member and others, including staff, where there is a substantive discussion regarding a quasijudicial decision by the City Council. The exchanges must be disclosed by the City Council so the public may respond to such exchanges before a vote is taken.

http://www.greencovesprings.com

AGENDAJune 18, 2019 of 3

Minutes of the City Council meetings can be obtained from the City Clerk’s office. The Meetings are usually recorded, but are not transcribed verbatim for the minutes. Persons requiring a verbatim transcript may make arrangements with the City Clerk to duplicate the recordings, if available, or arrange to have a court reporter present at the meeting. The cost of duplication and/or court reporter will be at the expense of the requesting party.

Persons who wish to appeal any decision made by the City Council with respect to any matter considered at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is based. The City is not responsible if the inhouse recording is incomplete for any reason.

CITY OF GREEN COVE SPRINGS, FLORIDA

STAFF REPORTFOR MEETING OF JUNE 18, 2019

SUBJECT: First Reading of City Ordinance No. O-09-2019, an Ordinance amending City Code Section 117, Article 1 "In General" to include a Future Land Use and Zoning Compatibility Table in Section 117-2(c); include a Permitted Use Table in Section 117-3; and include a Lot Requirements Table in a new section, 117-6. BACKGROUND: Staff has created a Future Land Use and Zoning Compatibility Table, Table of Permitted Uses, and a Lot Requirements Table, all of which are intended to make the information more accessible and user-friendly. It also allows for permitted uses and lot requirements to be more easily compared between zoning districts. STAFF COMMENTS Future Land Use and Zoning Compatibility TableThe Future Land Use and Zoning Compatibility Table shows which zoning districts are compatible with each future land use category. Currently, each zoning district states which future land use category it is compatible with in its title section or introductory paragraph, but this table will allow this information to be displayed in one compact, easy to read area. Permitted Use TableThe Permitted Use Table displays the uses allowed by right or by special exception for each zoning district organized categorically. Currently, permitted uses are only listed within each district, and in commercial zones, this results in a long paragraph of permitted uses. In the table, P indicates a use is permitted by right. SE indicates it would be permitted as a Special Exception. A superscript number next to either indicates there is a footnote below the table with further information, such as limitations or additional requirements. Lot Requirements TableThe Lot Requirements Table displays the density controls of each zoning district, organized by category, such as front yard setback or lot width. Within the table, NMR means the City’s Code specifically states there is No Minimum Required for that category in that particular zoning district. MP stands for Minimum Pervious which was used in the City’s Code a few times instead of using a lot coverage percentage or floor area ratio. A superscript number next to either indicates there is a footnote below the table with further information, such as limitations or additional requirements.

Planning & Zoning Board Recommendation

The Planning & Zoning Board held a Public Hearing of the Ordinance at their meeting on May 28, 2019. A motion was made to recommend to City Council the adoption of Ordinance No. O-09-2019. The motion was approved in a unanimous vote, 5-0. FISCAL IMPACT/FUNDING SOURCE: None. RECOMMENDATION: Approve as to form Ordinance No. O-09-2019, amending City Code Section 117, Article 1. MOTION: Approve as to form Ordinance No. O-09-2019, amending City Code Section 117, Article 1.

Created/Initiated By: Heather Glisson, Service Rep on 6/11/2019 12:37 PMFinal Approval By: Steve Kennedy, City Manager on 6/12/2019 10:35 AM

Ordinance No. O-09-2019

Page 1 of 20

ORDINANCE NO. O-09-2019

AN ORDINANCE OF THE CITY OF GREEN COVE SPRINGS,

FLORIDA, AMENDING CITY CODE SECTION 117,

ARTICLE 1 “IN GENERAL” TO INCLUDE A FUTURE LAND

USE AND ZONING COMPATIBILITY TABLE IN SECTION

117-2(C); AND INCLUDE A PERMITTED USE TABLE IN

SECTION 117-3; AND INCLUDE A LOT REQUIREMENTS

TABLE IN SECTION 117-6; PROVIDING FOR REPEALER,

SEVERABILITY AND SETTING AN EFFECTIVE DATE.

WHEREAS, the City desires to amend City Code Section 117-2 (c) to include a Future

Land use and Zoning Compatibility Table; and

WHEREAS, the City desires to amend City Code Section 117-3 to include a Table of

Permitted Uses; and

WHEREAS, the City desires to create City Code Section 117-6 to include a Lot

Requirements Table; and

WHEREAS, such proposed change is in the public interest.

NOW, THEREFORE BE IT ENACTED BY THE CITY COUNCIL OF THE CITY

OF GREEN COVE SPRINGS, FLORIDA AS FOLLOWS:

Section 1. City Code Section 117, Article 1 entitled “In General” is hereby amended to read

as follows:

ARTICLE I. - IN GENERAL

Sec. 117-1. - Purpose.

The purpose of this chapter is to describe the specific uses and restrictions that apply to land use districts

consistent with the future land use element of the comprehensive plan. These regulations are intended to

allow development and use of property only in compliance with the goals, objectives, and policies in the

city comprehensive plan.

(Code 2001, § 102-1; Ord. No. O-01-2000, § 3.00.01, 6-6-2000; Ord. No. O-08-2011, § 6, 12-6-2011)

Sec. 117-2. - Land use districts, generally.

(a) Land use districts for the city are established in the comprehensive plan, future land use element,

including the future land use map of the city comprehensive plan. The land use districts and

classifications defined in the future land use element of the city comprehensive plan and delineated on


Page 2 of 20

the future land use map are the general determinant of permissible activities in the jurisdiction. Specific

determinations on allowable uses on a parcel-by-parcel basis is established in this subpart and

delineated on the tables in the applicable district. Allowable uses are shown in articles II through VI

of this chapter to correlate individual land use activities with land use classifications included on the

future land use map.

(b) The city is divided into the following land use districts:

Residential low density RLD

Residential medium density RMD

Residential high density RHD

Riverfront residential density RRD

Residential professional office RPO

Commercial medium intensity CMI

Commercial high intensity CHI

Mixed use highway MUH

Mixed use Reynolds Park MURP

Industrial, warehouse, light manufacturing IND

Institutional INS

Conservation CONS

Recreational REC

(c) These districts have corresponding zoning categories that are consistent with the future land use and

promote the implementation of the comprehensive plan. The planned unit development zoning

category (PUD) is an allowable zoning category for all land use districts. The uses allowed in the PUD

zoning district must be consistent with the future land use designation, promote the implementation of

the comprehensive plan, and meet the requirements for a planned unit development included in this

subpart.

Future Land Use and Zoning Compatibility Table


Page 3 of 20

RLD RMD RHD RRF INS RPO CMI CHI CBD IND MUH MURP CON REC

R-1 R-2 R-3 PUD INS RPO C-1 C-2 CBD M-1 M-2

70%

M-2 REC REC

GCR GCR

GCN GCN GCC

M-2 C-2

30%

Sec. 117-3. - Specific allowed uses, generally.

This chapter defines and prescribes the specific uses allowed within each land use district described in the

comprehensive plan and this subpart.

Permitted Use Table

Use Category Use Type R-1 R-2 R-3 RRF5 RPO6 C-18 C-2 REC CBD GCR

(RLD)

GCR

(RMD)

GCN20 GCC INS26 M-1 M-2

RESIDENTIAL USES

Residential

Operation

Home Occupation1 SE SE SE

P P P

SE SE P P

Residential

Type

Mobile Home Park SE3

Multifamily Dwelling P4 P P23

Single-family

Dwelling, Detached

P P P P P P P P P P P P

Single-family

Dwelling, Attached

SE2 SE2 P P P P P

SE2 P2 P2

Two-family dwelling P P

RETAIL USES

General

Retail

Antiques

P13 P P P P

Appliance Sales and

Rentals

P P

P

Art Supplies SE7 P13 P P P P

Automobile Parts P SE

Bait and Tackle P

Bakery SE12

P P P

Bicycle Sales and

Service

P P P

Billiards P P P

Book / Stationery Store

P13 P P P P

Bowling Alley P


Page 4 of 20

Building Supplies and

Materials

P

Cabinet Shops P

Cameras and

Photographic Supplies

SE7 P13 P P P P

Carpet Outlets P

Ceramic Sales and

Studios

P P P

Cigar and Smoke

Shops

P13 P P P P

Clock Shops P13 P P P P

Clothing Shops P P P

Commercial Retail

Packaging and Mail

P P

Convenience Stores

(no gas pumps)

P13 P P P P

Convenience Stores

(with gas pumps)

SE

SE

Curio Shops P P P

Decorating Studio /

Shop

P P P

Delicatessen SE7

Department Store P P P

Drapery Shops P13 P P P P

Drug Sales (including

medical marijuana

treatment center

dispensing facilities)

SE7 SE P P P P

Electrical Shops P

Florist SE7 P13 P P P P

Food Outlet Store SE7 SE

P P

Fruit and Vegetables

Sales (retail, no

packing)

P P

Furniture Store P P P

Game Room P P P

Gift Shop SE7 P13 P P P P

Grocery Store

P P

P

Gun Sales and Repair P13 P P P P

Hardware Store

P P

P

Heating and Air

Conditioning Sales and

Service

P


Page 5 of 20

Hobby and Craft SE7 P13 P P P P

Interior Decorating

P13 P P P P

Janitorial Supplies P

Jewelry Store SE7 P13 P P P P

Leather Goods and

Luggage

SE7 P13 P P P P

Locksmiths

P13 P P P P

Meat Markets P P

Medical Supplies P P P

Mobile Home Sales

and Service

P

Motorcycle Sales and

Service

P

Music Store SE10

Newsstands P13 P P P P

Nurseries

P

Office and/or Business

Machines

P13 P P P P

Office and/or Business

Supplies

P13 P P P P

Optical Shops

P P

P

Opticians P13 P P P P

Outdoor Sales SE

Paint / Wallpaper P13 P P P P

Pawn Shops P P P P

Pet Grooming P P P

Pet Shops SE9

P P

Pool Supplies P

Printing Shops P P P

Professional Offices P P13 P P P P

Rentals P P24

Second Hand Retail

P

Shoe Repair P13 P P P P

Shoe Store P P P

Shopping Center P

Skating Rink P P

Sporting Goods Store SE7

P P P

Sundries and Notions

Shops

SE P P P

Tailor / Dressmaker P13 P P P P

Television and Radio

Sales and Service

P P P


Page 6 of 20

Theaters P P P

Toy Stores P P P

Upholstery Shops P

Utility Building Sales P

Watch Repair SE7 P13 P P P P

Wearing Apparel

Shops

P P

P

Wholesaling from

Sample Stock

SE14

Vehicular

Sales

Automobile Sales,

Service, Repair, and

Rentals

SE15 P SE21 SE22

Boat and Motor Sales

and Service

P

Tire Sales and Service P

SERVICE USES

Agricultural

Use

Timber Growing, Tree

Farming, Nursery, or

Agricultural Related

Businesses

SE

Business

Service

Parking Lot SE P P

Parking Garage P

Pest Control Service

Establishments

P P

Radio or TV

Broadcasting Offices,

Studios, Transmitters,

or Antennas

P P

Television and Radio

Studios (excluding

transmission

equipment)

SE11 P

Eating or

Drinking

Establishment

Alcoholic beverages

(all types, sale and

service) for on-

premises consumption

SE SE SE SE

Alcoholic beverages

(beer and wine sales)

for off-premises

consumption

SE SE

Restaurants (with

drive-through)

P SE P

Restaurants (without

drive-through)

SE7 SE P P P P SE

Art Gallery or Studio

P P P


Page 7 of 20

Hospitality

and Tourism

Hotel / Motel P P

P

Museum P P P

Office Use Building Trade

Contractors with Fleet

Parking On-Site

SE

Financial Institutions

(with drive-through)

P P P

Financial Institutions

(without drive-

through)

P13 P P P P

Office Space for

Building Trades

Contractor with No

Fleet Parking On-Site

P

Professional Offices P P13 P P P P P P

Personal

Service

Barbershops / Beauty

Shops

P13 P P P P

Dry Cleaners SE7

P P

P

Funeral Homes

P13 P P P P

Health Spa P P

P

Laundries /

Laundromats

P P

Licensed Masseurs P

Mini-Warehouse SE P P

Palmist / Psychic SE

Well Drilling and

Pump Services

P

EDUCATION/RECREATION/SOCIAL USES

Adult Use

Establishment

Adult Arcade /

Electronic Game

Center

SE

Community

Service

Adult Day Care SE SE SE SE SE SE

SE SE

Child Care SE SE SE SE SE SE SE SE SE P

Church SE SE SE P SE SE SE SE SE SE P

Group Care Home SE

Nursing Home SE SE SE

Educational

Use

Pre-school SE SE SE SE P

Private School SE

School, elementary &

secondary

SE

School, post-secondary SE

Vocational, Technical,

Trade, or Industrial

School

P P

Athletic Complex SE


Page 8 of 20

Recreational

Use

Clubs/Lodges/Fraternal

Organizations

SE

Country Club P P P P P

Dance / Music /

Gymnastics Studio

P

P P

Go-Cart Track SE

Golf Course P P P P P SE28

Race Tracks SE18

PUBLIC USES

Public Use Bus Passages, Parcel

Pick-ups and terminals

SE

HEALTH CARE USES

Health Care

Use

Convalescence Facility SE SE SE

Dental Clinic SE

Hospital SE SE SE SE SE

Medical / Dental

Laboratories

SE

Medical Clinic SE

Nursing Home SE SE SE

Veterinarian Clinics

P P25 P

INDUSTRIAL USES

High-Impact

Industrial Use

Boat and Ship

Manufacturing,

Distributions, Sales,

and Storage

P

Container

Manufacturing

P

Manufacturing, Sales,

and Distribution of

Concrete Products,

Plastic Products,

Fiberglass Products,

Wood Products,

Gypsum Products, and

Foam Products;

P

Metal Fabrication

Shops

P

Fuel Sales and

Services

P

Port and Related

Activities

P

Low-Impact

Industrial Use

Aviation Related

Facilities, Storage, and

Production

P


Page 9 of 20

Boatyard SE

Building Trades

Contractor with

Outside Storage Yard

and Heavy

Construction

Equipment

SE

Bulk Storage Yard SE17 P P

Clinics, in connection

with industrial activity

P P

Distribution

Establishment

P P

Fabrictors SE19

Food Processing,

Storage and

Distribution

P

Light Manufacturing SE16 P P

Outdoor Storage

P27 P27

Packaging Facilities

Printing /

Lithographing /

Publishing

P P

Railroad Rights-of-

Way

P P

Research, experimental

testing laboratories

P P

Storage Trailers for

sale or rental

P

Truck Facilities P

Warehouse / Storage SE P P

Welding Shop SE

Wholesale SE P P

Permitted Use Table Footnotes

P- Permitted, SE – Allowed by Special Exception

1. Subject to the conditions set forth in Sec. 117-789.

2. Single-family attached dwellings, up to four units

3. Subject to the conditions in Sec. 117-122(4)(a-j)

4. Multifamily dwelling units may omit garages through a Special Exception


Page 10 of 20

5. Subject to development criteria in Sec. 117-147. Each RRF parcel requires a PUD rezoning in

compliance with Sec. 117-421 in order to be developed.

6. All permitted uses are subject to the conditions set forth in Sec. 117-199.

7. Subject to the limitations in Sec. 117-200(7).

8. Subject to the limitations in Sec. 117-226.

9. No kennels. Subject to the limitations in Sec. 117-200(7).

10. Musical instruments. Subject to the limitations in Sec. 117-200(7).

11. Including repair incidental to sales. Subject to the limitations in Sec. 117-200(7).

12. Not wholesale bakeries. Subject to the limitations in Sec. 117-200(7).

13. Subject to the limitations of 117-226.

14. Provided no manufacturing or storage for distribution is permitted on-premises.

15. Subject to the limitations outlined in Sec. 117-228(10)

16. Light manufacturing, processing (including food processing but not slaughterhouse), packaging

or fabricating

17. Bulk storage yards, not including bulk storage of flammable liquids

18. Race tracks for animals or vehicles

19. Plumbing, electrical, mechanical, and sheet metal.

20. All uses must be in a totally enclosed building and no more than 20 percent of floor space to be

devoted to storage. The permitted uses per Sec. 117-540 are subject to the limitations in Sec. 117-

541(5)(b)

21. Automobile rental not included as a use permitted by special exception.

22. Establishments or facilities for automobile parts, sales, and service without use of an outdoor

intercom or public address system or speakers, and no vehicle display racks that tilt vehicles in

any way to show underside, unless they are located inside a show room.

23. Through special exception, multifamily dwelling units can be built without garages.

24. Rentals, excluding heavy equipment.

25. Veterinarian clinics within enclosed buildings.

26. The following are permitted uses in the institutional land use category, institutional zoning

category: Any lawful civic, governmental, religious, public utility, and other public necessity uses

or activities.


Page 11 of 20

27. Subject to the limitations of Sec. 117-297(5).

28. Golf courses and pro shop allowed by special exception.

Sec. 117-4. - Prohibited uses.

The following uses are prohibited in any land use category within the city:

(1) Acid manufacture;

(2) Cement and lime manufacture;

(3) Distillation of bones;

(4) Manufacture of explosives;

(5) Fat, tallow or lard rendering;

(6) Garbage, offal or dead animal reduction;

(7) Storage of toxic waste;

(8) Automobile wrecking or junkyards;

(9) Paper and pulp manufacturing;

(10) Mining;

(11) Uses that create smoke or fire unless approved by the city.

Sec. 117-5. - Enclosed garages required for all residential dwelling units.

All residential dwelling units within the city in any land use district or zoning category shall have an

attached or detached enclosed garage of at least ten feet by 20 feet unless otherwise provided in this Code.

Additional conditions and exceptions are as follows:

(1) The requirement for garages may be eliminated in multifamily dwelling units with a special

exception or by rezoning the property to a PUD. This requirement shall apply to all new

construction.

(2) All existing carports as of the date of adoption of the ordinance from which this chapter is derived

in any residential zoning district shall be allowed. This shall not require construction of a garage

at these properties. The size of a carport cannot be increased or another carport constructed on the

site. A carport of the same size can be rebuilt on the site if it is destroyed by a calamity, such as

fire or wind.

(3) Remodeling of an existing dwelling unit, including enclosing a carport to living space, without

a garage would not trigger constructing a garage. This would also include remodeling of an

existing dwelling unit without a garage that increases the square footage.

(4) Converting an existing garage into living space is not permitted, unless a garage is added to site.

(5) Adding a carport to an existing residential site that has a garage is not permitted.

(6) New carports except as set forth in subsection (2) of this section, cannot be constructed in the

city.

(7) Existing carports are permitted to be converted to a garage or living space.


Page 12 of 20

Section 2. City Code Section 117-6 entitled Lot Requirements Table is hereby created to read as follows:

Sec. 117-6. – Lot requirements table.

R-1 R-2 R-3 RPO C-1 C-2 REC CBD1 GCR2

RLD

GCR2

RMD

GCN GCC INS M-1 M-2

FRONT

YARD

(Minimum

feet):

Single-family

dwelling unit,

detached

20 20 20 20 20 20 20 20 10 10

Single-family

dwelling unit,

attached

20 20 20 20 20 20 10

Multi-family

dwelling unit

30 10

Mobile Home

Park /

Subdivision

15

Condominium

/ Townhome

Development

Nonresidential

uses

20 25 25 10 10 20 25 25

INTERIOR

SIDE YARD:

Single-family

dwelling unit,

detached

10 7.5 7.5 7.5 7.5 7.5 10 7.5 5 5

Single-family

dwelling unit,

attached

10 or

10%3

7.5 or

10%3

10 or

10%3

10 or

10%3

10 or

10%3

10 or

10%3

10

Multi-family

dwelling unit

10 4 5 9

Mobile Home

Park /

Subdivision

7.5

Condominium

/ Townhome

Development

25 7

Nonresidential

uses

7.5 or

10%3

NMR8 NMR8 10 10 NMR8 15 15


Page 13 of 20

STREET

SIDE YARD:

Single-family

dwelling unit,

detached

15 15 15 15 15 15 15 15 10 10

Single-family

dwelling unit,

attached

15 or

10%3

15 or

10%3

15 or

10%3

15 or

10%3

15 or

10%3

15 or

10%3

10

Multi-family

dwelling unit

15 10

Mobile Home

Park /

Subdivision

15

Condominium

/ Townhome

Development

15

Nonresidential

uses

15 or

10%3

NMR8 NMR8 10 10 NMR8 15 15

REAR

YARD:

Single-family

dwelling unit,

detached

10 10 10 10 10 10 10 10 10 10

Single-family

dwelling unit,

attached

10 10 10 10 10 10 10

Multi-family

dwelling unit

20 5

10

Mobile Home

Park /

Subdivision

10

Condominium

/ Townhome

Development

25 6

Nonresidential

uses

10 10 7 10 7 10 10 10 7 20 20

LOT WIDTH

(Minimum

feet):

Single-family

dwelling unit,

detached

70 50 50 50 50 50 70 50 50 50

Single-family

dwelling unit,

attached

75 11 75 75 11 75 11 75 11 75 11 75 11


Page 14 of 20

Multi-family

dwelling unit

100 100

Mobile Home

Park /

Subdivision

100 10

Condominium

/ Townhome

Development

400

Nonresidential

uses

50 NMR NMR NMR NMR NMR 100 100

LIVING

AREA

(Minimum

square feet):

Single-family

dwelling unit,

detached

1,250 1,000 1,000 1,000 1,000 1,000

1,250 1,000 1000 1000

Single-family

dwelling unit,

attached

1,000 700 14 1,000 1,000 1,000 1,000 1,000

Multi-family

dwelling unit

800 12 750 13

Mobile Home

Park /

Subdivision

Condominium

/ Townhome

Development

750 13

Nonresidential

uses

LOT AREA

(Minimum-

1,000's square

feet):

Single-family

dwelling unit,

detached

7 5 5 5 5 5

7 5 5 5

Single-family

dwelling unit,

attached

8.5 17 7.5 8.5 17 8.5 17 8.5 17 8.5 17 8.5 17

Multi-family

dwelling unit

7.5 15 7.5 15

Mobile Home

Park /

Subdivision

435.6


Page 15 of 20

Condominium

/ Townhome

Development

7.26 16

Nonresidential

uses

6 NMR NMR NMR NMR NMR NMR NMR

BUILDING

COVERAGE

(%) or Floor

Area Ratio

(FAR):

Single-family

dwelling unit,

detached

35% 35% 35% 35% 35% 35% 35% 35% MP19 MP19

Single-family

dwelling unit,

attached

35% 35% 35% 35% 35% 35% MP18

Multi-family

dwelling unit

40% MP20

Mobile Home

Park /

Subdivision

40%

Condominium

/ Townhome

Development

MP18

Nonresidential

uses

0.2 0.25 0.35 0.2 MP18 MP20 0.3 0.6 0.6

BUILDING

HEIGHT

(Maximum

feet):

35 35 35 21 35 35 35 35 35 35 23 54 24 85 22 55 25 55 25

Lot Requirements Footnotes

NMR – No minimum required MP – Minimum pervious

Districts

1. Central Business District Density Controls: Sec 117-444

1. Where structures are in existence and situated in the central business district at the time

of the adoption of the ordinance from which this section is derived and are demolished, or

destroyed, the structures shall be allowed to be rebuilt to the same footprints as existed at

the time of adoption of the ordinance from which this section is derived, provided the

construction of the new structure meets current building codes and is consistent with the

exterior of the damaged structure or adjoining structures.

2. The requirements for new construction which is proposed to be placed on land which is

vacant at the time of adoption of the ordinance from which this section is derived shall be


Page 16 of 20

site specific. In general, such structures shall be required to conform to the density

requirements of the adjacent structures where deemed practicable. There shall be

continuity in front yard alignment without regard to other requirements in this Code.

2. Gateway Corridor Residential Zoning Category: Sec 117-515

1. The gateway corridor residential zoning category is intended for all property located in

the gateway corridor and designated as RLD (residential low density) and RMD

(residential medium density) on the future land use map. The permitted uses, special

exceptions, and density controls are R-1, single family residential, for the RLD

(residential low density) property and R-2, single-family multifamily residential, for the

RMD (residential medium density) property.

2. Where structures are in existence and situated in the gateway corridor residential zoning

category at the time of the adoption of the ordinance from which this section is derived

and are demolished or destroyed, the structures shall be allowed to be rebuilt to the same

footprints and density as existed at the time of adoption of the ordinance from which this

section is derived, provided the construction of the new structure meets current building

codes.

Setbacks

3. 10% of lot width (the greater amount must be chosen)

4. Not less than ten feet for the first two stories. For each story in excess of two, the required side

yards shall be increased by five feet for each story so added

5. 20 feet for the first two stories. For each story in excess of two, the required rear yards shall be

increased by five feet for each story so added.

6. Sec. 117-113(5)(c-e)

(c) Minimum required from side and rear yard of the structure: Not less than 25 feet for the first

two stories. For each story in excess of two, the required front, side and rear yards shall be

increased by one foot horizontally for every one foot of vertical building rise;

(d) Minimum required rear yard: 25 feet unless it fronts a state-owned property (St. Johns River

or Governors Creek) then a minimum of 30 feet setback;

(e) Minimum required side yard on each side of the structure: Not less than 25 feet for the first

two stories. For each story in excess of two, the required side yards shall be increased by one foot

horizontally for every one foot of vertical building rise;

7. If abutting a dedicated alley, only five feet are required.

8. No minimum required (NMR), except 15 feet on corner lots and 15 feet on interior lots when

abutting a residential zone.


Page 17 of 20

9. Minimum required side yard on each side of the structure: Not less than five feet for the first two

stories. For each story in excess of two, the required side yards shall be increased by five feet for

each story so added;

Lot Width

10. 100 feet on a public street

11. Minimum required lot width:

1. Two-family: 75 feet

2. Three-family: 100 feet

3. Four-family: 150 feet

Living Area

12. Sec. 117-123(3)(f)(1-4)

f. Minimum required living areas:

1. Efficiency apartment: 800 square feet;

2. One bedroom apartment: 800 square feet;

3. Two bedroom apartment: 900 square feet;

4. Three or more bedroom apartment: 900 square feet plus an additional 100 square feet for

each bedroom over two bedrooms;

13. Sec. 117-113(f)(1-4) & Sec. 117-566(2)(f)(1-4)

f. Minimum required living areas:

1. Efficiency unit: 750 square feet;

2. One bedroom unit: 800 square feet;

3. Two bedroom unit: 900 square feet;

4. Three or more bedroom unit: 900 square feet plus an additional 100 square feet for each

bedroom over two bedrooms;

14. Minimum required living area: 700 square feet per family

Lot Area

15. 7,500 square feet for the first two dwelling units and 2,700 square feet for each additional unit

that is added.


Page 18 of 20

16. Minimum required lot area shall be 7,260 square feet for the first two dwelling units and 3,630

square feet for each additional unit that is added;

17. Minimum required lot area:

1. Two-family: 8,500 square feet

2. Three-family: 12,500 square feet

3. Four-family: 16,500 square feet

Minimum Pervious

18. Minimum Pervious is 30%.

19. Minimum pervious surface: 40%

20. Minimum pervious surface: 20%

Structure Height

21. For condominiums and townhome developments up to five stories excluding basement and

parking garage areas - Maximum fifth floor level: Not to exceed 63 feet and the top of the roof

shall not exceed 85 feet, except that an additional ten feet in height may be allowed for

architectural features as provided by the city;

22. Mirror industrial height for utility structures i.e., elevated water storage tanks.

23. Maximum number of stories: Three. Maximum structure height: 35 feet. For commercial and

professional offices: The maximum height may be increased to 50 feet. The building must be

tiered back one foot for every foot over 35 feet;

24. Maximum structure height: 54 feet. Maximum height may be increased to 70 feet. The building

must be tiered back one foot for every foot over 54 feet. Maximum number of stories: Four. For a

single-family detached dwelling permitted by special exception, maximum height would be 35

feet and the maximum number of stories is three.

25. Maximum structure height (buildings): 55 feet. Maximum accessory height (towers only): 85 feet.


Page 19 of 20

Secs. 117-7—117-28. - Reserved.

Section 3. REPEALER. Any Ordinances or parts thereof in conflict with the

provisions of this Ordinance are hereby repealed to the extent of such conflict.

Section 4. SEVERABILITY. The various parts, sections, and clauses of this

Ordinance are hereby declared severable. If any part, sentence, paragraph, section, or clause is

adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of the

Ordinance shall not be affected thereby.

Section 5. EFFECTIVE DATE. This Ordinance shall become effective upon

passage.

INTRODUCED AND APPROVED AS TO FORM ONLY ON THE FIRST

READING BY THE CITY COUNCIL OF THE CITY OF GREEN COVE SPRINGS,

FLORIDA, ON THIS 18TH DAY OF JUNE, 2019.


Steven R. Kelley, Mayor

ATTEST:

Erin West, City Clerk


Page 20 of 20

PASSED ON SECOND AND FINAL READING BY THE CITY COUNCIL OF THE

CITY OF GREEN COVE SPRINGS, FLORIDA, THIS 9th DAY OF JULY, 2019.


Steven R. Kelley, Mayor

ATTEST:

Erin West, City Clerk

APPROVED AS TO FORM:

L. J. Arnold, III, City Attorney



SUBJECT: City Council Approval of Minutes from 4-16-2019 Regular, 4-16-2019 Special, 5-7-2019 Regular, and 5-7-2019 Special Council Meetings. BACKGROUND: FISCAL IMPACT/FUNDING SOURCE: RECOMMENDATION: City Council Approval of Minutes from 4-16-2019 Regular, 4-16-2019 Special, 5-7-2019 Regular, and 5-7-2019 Special Council Meetings. MOTION: City Council Approval of Minutes from 4-16-2019 Regular, 4-16-2019 Special, 5-7-2019 Regular, and 5-7-2019 Special Council Meetings.

Created/Initiated By: Erin West, City Clerk on 6/5/2019 10:27 AMFinal Approval By: Steve Kennedy, City Manager on 6/6/2019 7:33 AM

MINUTES OF THE APRIL 16, 2019 SPECIAL SESSION

GREEN COVE SPRINGS CITY COUNCIL

Call to Order

The special session of the Green Cove Springs City Council was called to order Tuesday, April

16, 2019, at 7:00 p.m. in the City Council Chambers, 321 Walnut Street, Green Cove Springs,

Florida.

Invocation and Pledge of Allegiance to the Flag

The invocation was given by Joe Sobotta, followed by the Pledge of Allegiance to the Flag of the

United States of America.

Roll Call

COUNCIL MEMBERS PRESENT:

Pamela J. Lewis

B. Van Royal

Roy M. Timberlake, Jr.

Steven Kelley, Vice Mayor

Constance W. Butler, Mayor

STAFF MEMBERS PRESENT:


Steve Kennedy, City Manager

Kimberly Thomas, Interim City Clerk

Mayor to call on members of the audience wishing to address

the Council on matters not on the Agenda.

None


None

PUBLIC HEARINGS

None

COUNCIL BUSINESS

1. Question and answer session with communication specialist attorney Tom Cloud,

regarding proposed City Ordinance No. O062019 which regulates use of City ROW

and wireless communication devices. L. J. Arnold, III, Tom Cloud, Special Counsel

Mr. Cloud joined the meeting via conference call. This was a questions and answer meeting

in which Mr. Cloud gave an overview of the ordinance as well as the legislation being

considered by the legislature. Council Member Timberlake proposed adopting the

April 16, 2019 Regular Session

Page 2 of 2

ordinance at the 7:00 pm meeting and then come back and make any necessary changes

once the legislation was passed.

Many inquiries were made by Council and staff such as the City’s right to require all

facilities be placed underground, using existing poles and removal of abandoned poles, and

speaking with telecommunicator officials directly, and.inserting “reasonable discretion” in

paragraph

After much discussion the Council thanked Mr. Cloud for his assistance in answering their

questions and concerns.

Adjournment.

There being no further business to come before the City Council, the meeting was adjourned at

6:30 p.m.



Attest:


MINUTES OF THE APRIL 16, 2019 REGULAR SESSION


Call to Order

The regular session of the Green Cove Springs City Council was called to order Tuesday, April

16, 2019, at 7:00 p.m. in the City Council Chambers, 321 Walnut Street, Green Cove Springs,

Florida.


The invocation was given by Rev. Pernell, followed by the Pledge of Allegiance to the Flag of the

United States of America.

Roll Call


Pamela J. Lewis

B. Van Royal










Council recognized Ed Gaw 1 Elmore Street, Green Cove Springs, however he requested to wait

until Public Hearing for O-06-2019 was addressed.

Council recognized Henrietta Francis 2439 Bonnie Lakes Drive, Green Cove Springs who

thanked Council for their support of the Augusta Savage Festival.


Mayor Butler presented Proclamation for Water Conservation Month to Tammy Bader-Gibbs,

Technical Program Manager with St. Johns River Water Management District.

PUBLIC HEARINGS


Page 2 of 6

1. First Reading of City Ordinance No. O-08-2019, an Ordinance amending City

Code Section 62-138(2) which allows the possession, consumption or serving of

beer and wine at City sponsored events in Spring Park under limited conditions.

The Ordinance was read into the record by City Attorney Arnold.

Mayor Butler opened the Public Hearing. There being no further discussion the Public

Hearing was closed.

Mr. Gaw announced that Food Truck Friday was named Best in Clay County and

requested the alcohol allowed area to be extended due to growth in attendance.

A MOTION WAS MADE BY COUNCIL MEMBER TIMBERLAKE TO APPROVE

THE FIRST READING OF ORDINANCE NO. O-08-2019 AND ALLOW THE

EXTENTION OF THE ALCOHOL ALLOWED AREA. THE MOTION WAS

SECONDED BY COUNCIL MEMBER ROYAL. THERE BEING NO FURTHER

DISCUSSION, THE MOTION WAS APPROVED BY THE FOLLOWING ROLL

CALL VOTE: AYES – COUNCIL MEMBERS PAMELA J. LEWIS, B. VAN ROYAL,

ROY M. TIMBERLAKE, JR., STEVEN R. KELLEY, AND CONSTANCE W.

BUTLER, MAYOR. NAYS – NONE.

The Clerk mentioned the additional street closure that would be needed due to additional

food trucks.

AN AMENDED MOTION WAS MADE BY COUNCIL MEMBER TIMBERLAKE TO

INCLUDE ADDITIONAL STREET CLOSURES. THE MOTION WAS SECONDED

BY COUNCIL MEMBER LEWIS. THERE BEING NO FURTHER DISCUSSION,

THE MOTION WAS APPROVED BY THE FOLLOWING ROLL CALL VOTE: AYES

– COUNCIL MEMBERS PAMELA J. LEWIS, B. VAN ROYAL, ROY M.

TIMBERLAKE, JR., STEVEN R. KELLEY, AND CONSTANCE W. BUTLER,

MAYOR. NAYS – NONE.

Joe Sobotta 212 North Street addressed the Council with an update on AT&T and

possible changes. Discussion followed.

2. Second and Final Reading of City Ordinance No. O-07-2019, an Ordinance

authorizing staff to borrow up to $18,000,000.00 for capital improvements to the

City’s water system. The Ordinance was read into the record by City Attorney

Arnold.

Mayor Butler opened the Public Hearing. There being no further discussion the Public

Hearing was closed.


ORDINANCE NO. O-07-2019. THE MOTION WAS SECONDED BY COUNCIL

MEMBER ROYAL. THERE BEING NO FURTHER DISCUSSION, THE MOTION


Page 3 of 6

WAS APPROVED BY THE FOLLOWING ROLL CALL VOTE: AYES – COUNCIL

MEMBERS PAMELA J. LEWIS, B. VAN ROYAL, ROY M. TIMBERLAKE, JR.,

STEVEN R. KELLEY, AND CONSTANCE W. BUTLER, MAYOR. NAYS – NONE.

CONSENT AGENDA

1. City Council approval of March 5, 2019 Council Minutes. Kimberly Thomas

2. City Council approval of 2019 Augusta Savage Festival After Action Report. Kimberly

Thomas

3. City Council acceptance of the Monthly Legal Report for Spring Park Project March

2019. Total Legal Services are $92,531.94. Marlena Guthrie

4. City Council acceptance of the Monthly Legal Report for Annexation March 2019. Total

Legal Services are $24,967.00. Marlena Guthrie

5. City Council Accept the fifth amendment to the Subaward and Grant Agreement Z0565,

with the Department of Homeland Security for the payment of Hurricane Irma cost, and

authorize the Mayor to sign all related documents. Marlena Guthrie

6. City Council approve the Local Area Project (LAP) agreement with the Department of

Transportation for the design phase of project 4367713802, located at Palmetto Avenue

and Martin Luther King Boulevard in the amount of $50,000. Marlena Guthrie

7. City Council approval of a purchase order in the amount of $55,198.00 to Playworks

Playset, LLC to add new equipment in the Spring Park playground and replace the worn-

out parts on the existing playground equipment. Steve Thomas

8. City Council approval of Pay Request #2 / Mittauer & Associates Invoice # 19141, in the

amount of $15,000.00, totaling $20,000.00 of the $71,000.00 task, for design & bidding

of the SR 16 / SR 15 (US 17) Force Main Modification. Mike Null, Scott Schultz

9. City Council approval of, and authorization for the Mayor to execute, Disbursement

Request #1 / Mittauer Invoice # 19145, in the amount of #7500.00, for the Florida

Department of Environmental Protection (FDEP) State Revolving Fund (SRF)

Construction Loan Agreement WW100402 / Grant Agreement SG100403 for Phase I

Construction of the Consolidated Advanced Wastewater Treatment Plant (AWWTP) and

associated Lift Station Improvements.

10. City Council approval to purchase materials for the relocation of electric infrastructure

due to FDOT construction of the First Coast Expressway in the amount of $150,000 from

various vendors as necessary. Mike Null

11. Subordination of additional Utility Easements in Reynolds Industrial Park to allow for

construction of the First Coast Expressway and approval of Resolution R032019,

authorizing the Mayor to execute same. Mike Null


THE CONSENT AGENDA ITEMS 1 THROUGH 11 EXCLUDING ITEMS 1, 4, 6, AND

7. THE MOTION WAS SECONDED BY COUNCIL MEMBER LEWIS. THERE BEING

NO FURTHER DISCUSSION, THE MOTION WAS APPROVED BY THE

FOLLOWING ROLL CALL VOTE: AYES – COUNCIL MEMBERS PAMELA J.

LEWIS, B. VAN ROYAL, ROY M. TIMBERLAKE, JR., STEVEN R. KELLEY, AND

CONSTANCE W. BUTLER, MAYOR. NAYS – NONE.


Page 4 of 6

Consent Agenda No 1: Mayor Butler requested a correction be made to the March 5th

minutes.


CONSENT AGENDA ITEM NO. 1 WITH CHANGES PER MAYOR BUTLER. THE

MOTION WAS SECONDED BY COUNCIL MEMBER ROYAL. THERE BEING NO

FURTHER DISCUSSION, THE MOTION WAS APPROVED BY THE FOLLOWING

ROLL CALL VOTE: AYES – COUNCIL MEMBERS PAMELA J. LEWIS, B. VAN

ROYAL, ROY M. TIMBERLAKE, JR., STEVEN R. KELLEY, AND CONSTANCE W.

BUTLER, MAYOR. NAYS – NONE.

Consent Agenda No 4: Vice-Mayor Kelley requested an update on Annexation. Mr.

Kennedy stated staff had met and did have a plan in motion.


CONSENT AGENDA ITEM NO. 4. THE MOTION WAS SECONDED BY VICE-

MAYOR KELLEY. THERE BEING NO FURTHER DISCUSSION, THE MOTION




Consent Agenda No 6: Vice-Mayor Kelley requested more details. Mr. Null gave an

overview of the location of the trail and size of sidewalks.


CONSENT AGENDA ITEM NO. 6. THE MOTION WAS SECONDED BY VICE-

MAYOR KELLEY. THERE BEING NO FURTHER DISCUSSION, THE MOTION




Consent Agenda No 7: Mayor Butler inquired if using same company. Mr. Thomas

confirmed and stated due to age of equipment they were the only company parts could be

purchased from.


CONSENT AGENDA ITEM NO. 7. THE MOTION WAS SECONDED BY COUNCIL





COUNCIL BUSINESS


Page 5 of 6

1. FMPA Report March 2019 Bob Page

Mr. Page gave an overview and discussed a new Solar Project. Council Member

Royal mentioned a JEA article he had read on Demand Meters and suggested staff

do something similar in the utility bills.

2. City Council consideration of a request from Clay County to participate in the cost

of removal of an 85-foot derelict vessel in Muddy Cove. Mike Null

Mr. Null explained the County would be removing the vessel and asked for

direction on providing funding to assist with the project.

A MOTION WAS MADE BY COUNCIL MEMBER TIMBERLAKE TO

APPROVED FUNDING REQUEST WITH REQUEST THAT STAFF COME BACK

AT EXT MEETING WITH FUNDING SOURCE. THE MOTION WAS SECONDED

BY COUNCIL MEMBER ROYAL. THERE BEING NO FURTHER DISCUSSION,

THE MOTION WAS APPROVED BY THE FOLLOWING ROLL CALL VOTE:

AYES – COUNCIL MEMBERS PAMELA J. LEWIS, B. VAN ROYAL, ROY M.



1. City Manager and City Attorney Reports and/or Correspondence.

The City Manager and City Attorney made comments regarding various city activities,

events, operations, and projects.

2. City Council Reports and/or Correspondence.

The City Council made comments regarding various city activities, events, operations, and

projects.

Ms. Glisson gave an update on swim lessons. Discussion followed on possible

sponsorships and some cost covered by families.

Adjournment.


9:30 p.m.



Attest:


Page 6 of 6


The remainder of this page intentionally left blank.

MINUTES OF THE MAY 7, 2019 SPECIAL SESSION


Call to Order

The special session of the Green Cove Springs City Council was called to order Tuesday, May 7,

2019, at 5:00 p.m. in the City Council Chambers, 321 Walnut Street, Green Cove Springs, Florida.


The invocation was given by Mitch Timberlake, Council Member followed by the Pledge of

Allegiance to the Flag of the United States of America.

Roll Call


Pamela J. Lewis

B. Van Royal







Mike Null, Asst. City Manager




COUNCIL BUSINESS

1. City Council Interview of Staff Recommendation for Green Cove Springs City Clerk.

Mary Jane Lundy

City Council interviewed Erin West for the position of City Clerk.

A MOTION WAS MADE BY COUNCIL MEMBER TIMBERLAKE TO ACCEPT

STAFF’S RECOMMENDATION AND DIRECTED HUMAN RESOURCES TO

MOVE FORWARD WITH HIRING PROCESS. THE MOTION WAS SECONDED

BY COUNCIL MEMBER ROYAL. THERE BEING NO FURTHER DISCUSSION,

THE MOTION WAS APPROVED BY THE FOLLOWING ROLL CALL VOTE:

AYES – COUNCIL MEMBERS PAMELA J. LEWIS, B. VAN ROYAL, ROY M.



Discussion followed on salary for Ms. West.


Page 2 of 2

A MOTION WAS MADE BY COUNCIL MEMBER TIMBERLAKE TO OFFER

$62,000 ALL IN AND A 5% INCREASE WITH COMPLETION OF MASTER’S

DEGREE. THE MOTION WAS SECONDED BY COUNCIL MEMBER LEWIS.

THERE BEING NO FURTHER DISCUSSION, THE MOTION WAS APPROVED

BY THE FOLLOWING ROLL CALL VOTE: AYES – COUNCIL MEMBERS

PAMELA J. LEWIS, B. VAN ROYAL, ROY M. TIMBERLAKE, JR., STEVEN R.

KELLEY, AND CONSTANCE W. BUTLER, MAYOR. NAYS – NONE.

Adjournment.


5:36 p.m.



Attest:


MINUTES OF THE MAY 7, 2019 REGULAR SESSION


Call to Order

The regular session of the Green Cove Springs City Council was called to order Tuesday, May 7,

2019, at 7:00 p.m. in the City Council Chambers, 321 Walnut Street, Green Cove Springs, Florida.


The invocation was given by Associate Pastor Chad Weeks, Russell Baptist Church followed by

the Pledge of Allegiance to the Flag of the United States of America.

Roll Call


Pamela J. Lewis

B. Van Royal







Mike Null, Asst. City Manager




None


Mayor Butler presented 4 Proclamations:

National Safe Boating Week to Kathy Fisk, Rick Preston & Dan Hess with the Coast Guard

Auxillary

Military Service Day to Carmon Wulf, Jr. Vice Commander with the Green Cove Springs VFW

Post 1988

National Police Week to Chief Derek Asdot and Officers of the Green Cove Springs Police

Department

Public Service Week to all City employees present


THE PROCLAMATIONS. THE MOTION WAS SECONDED BY COUNCIL





May 7, 2019 Regular Session

Page 2 of 4

CONSENT AGENDA

1. City Council approval of April 2, 2019 Council Minutes.

2. City Council approval of the FY 2019 Revenues and Expenditures Report and the

Quarterly Investment Report for the Period Ending March 31, 2019. Marlena

Guthrie

3. City Council acceptance of the Monthly Legal Report for Spring Park Project April

2019. Total Legal Services are $94,606.94. Marlena Guthrie

4. City Council acceptance of the Monthly Legal Report for Annexation April 2019.

Total Legal Services are $25,085.00. Marlena Guthrie

5. City Council approval of the renewal of the LowIncome Energy Assistance

Program (LIHEAP) Vendor Payment Agreement through the Northeast Florida

Community Action Agency, Inc. for the period retroactive to April 1, 2019 through

March 31, 2024 and authorize the Mayor to sign said Agreement. Kimberly

Thomas

6. City Council approval of Pay Request # 3 / Mittauer & Associates Invoice # 19212

in the amount of $2,500.00, totaling $13,500.00 of the $15,000.00 task, for permit

renewals for the Harbor Road WWTF, South WWTF and TMDL Aggregate

permits. Mike Null, Scott Schultz

7. City Council Accept the sixth amendment to the Subaward and Grant Agreement

Z0565, with the Department of Homeland Security for the payment of Hurricane

Irma cost, and authorize the Mayor to sign all related documents. Laurie

Copeland, Marlena Guthrie, Mike Null

8. Approval of Resolution R052019 Requesting the reduction of permit fees by the St.

Johns River Water Management District and the Florida Department of

Environmental Protection. Laurie Copeland, Marlena Guthrie, Mike Null

9. Approval of Staff recommendations for ranking of Engineering Firm submittals

RFQ LC 201903 for the Spring Park Public Access Pier. Laurie Copeland, Mike

Null

10. City Council approval of an Amendment to add Marine Assistance to the current

Mutual Aid Agreement for Combined Operational Assistance and Voluntary

Cooperation between the Green Cove Springs Police Department and the Clay

County Sheriff's Office.


THE CONSENT AGENDA ITEMS 1 THROUGH 10. THE MOTION WAS SECONDED

BY COUNCIL MEMBER ROYAL. THERE BEING NO FURTHER DISCUSSION, THE

MOTION WAS APPROVED BY THE FOLLOWING ROLL CALL VOTE: AYES –

COUNCIL MEMBERS PAMELA J. LEWIS, B. VAN ROYAL, ROY M. TIMBERLAKE,

JR., STEVEN R. KELLEY, AND CONSTANCE W. BUTLER, MAYOR. NAYS –

NONE.


Page 3 of 4

COUNCIL BUSINESS

1. City Council approval of Nominee for Planning & Zoning Board Member, Seat

1. Michael Daniels

Mr. Daniels stated Mr. Robert Lewis had given his resignation from the

Planning & Zoning Board, after 8 years of service and explained the process for

appointing new board members to the Planning and Zoning Board. Ms. Lewis

nominated Ron Baker III as his replacement and Council requested Mr. Lewis

be recognized for his years of service at the next meeting.

A MOTION WAS MADE BY COUNCIL MEMBER TIMBERLAKE TO

APPROVED THE NOMITATION FOR THE PLANNING AND ZONING BOARD.

THE MOTION WAS SECONDED BY COUNCIL MEMBER ROYAL. THERE

BEING NO FURTHER DISCUSSION, THE MOTION WAS APPROVED BY THE


LEWIS, B. VAN ROYAL, ROY M. TIMBERLAKE, JR., STEVEN R. KELLEY,

AND CONSTANCE W. BUTLER, MAYOR. NAYS – NONE.

2. Presentation by North Florida TPO for Transportation Improvement Program

(TIP). Wanda Forest, Transportation Planning Manager

Ms. Forest gave a presentation and overview of the 5 Year Plan and Highlight

Projects. Discussion followed.

3. FMPA Report - April 2019. Bob Page

Mr. Page gave an overview of April and discussion followed.

4. City Council acceptance of the Official Results of the April 9, 2019 Municipal

Election. Kimberly Thomas

Scrivener’s Error was noted – 2020/2022

Winners were named for each seat for the record.

A MOTION WAS MADE BY COUNCIL MEMBER TIMBERLAKE TO ACCEPT

THE OFFICIAL RESULTS OF THE APRIL 9, 2019 MUNICIPAL ELECTION.

THE MOTION WAS SECONDED BY COUNCIL MEMBER LEWIS. THERE

BEING NO FURTHER DISCUSSION, THE MOTION WAS APPROVED BY THE


LEWIS, B. VAN ROYAL, ROY M. TIMBERLAKE, JR., STEVEN R. KELLEY,

AND CONSTANCE W. BUTLER, MAYOR. NAYS – NONE.


Page 4 of 4

5. City Council approval of Resolution No. R062019, a Resolution cancelling and

rescheduling the regularly scheduled meetings of the Green Cove Springs City

Council for July 2019 through January 2020.

Discussion followed. All changes were accepted however Council agreed to

hold a meeting on November 5, November 19, and December 3 and to cancel

the December 17th meeting.


THE RESOLUTION WITH ABOVE SAID CHANGES. THE MOTION WAS

SECONDED BY COUNCIL MEMBER ROYAL. THERE BEING NO FURTHER

DISCUSSION, THE MOTION WAS APPROVED BY THE FOLLOWING ROLL

CALL VOTE: AYES – COUNCIL MEMBERS PAMELA J. LEWIS, B. VAN

ROYAL, ROY M. TIMBERLAKE, JR., STEVEN R. KELLEY, AND CONSTANCE

W. BUTLER, MAYOR. NAYS – NONE.

1. City Manager and City Attorney Reports and/or Correspondence.

The City Manager and City Attorney made comments regarding various city activities,

events, operations, and projects.

2. City Council Reports and/or Correspondence.

The City Council made comments regarding various city activities, events, operations, and

projects.

Ms. Garlinghouse shared Dedication of Monument at Historic Triangle and Porch Play at

Inn to be held on May 18th.

Adjournment.


8:19 p.m.



Attest:


1

City of Green Cove Springs External Social Media Policy

Purpose: The City of Green Cove Springs maintains social media channels to streamline communications with the public, provide transparency on city projects, policy and utilities, keep the public up to date with city meetings and events, and become the first line of communication in the event of an emergency.

Definitions:

Social Media Channels: is the term that refers to internet-based digital communication platforms that integrate user-generated content and user participation to share information, opinion and other content such as photos, videos, articles, and other publications. Social media channels may include but are not limited to Facebook, Twitter, Instagram, YouTube, etc.

Social Media Account: shall mean any registration, login credential, tool, forum, website or network that is created or maintained by an employee on behalf of City of Green Cove Springs for the purpose of establishing or perpetuating a social media presence.

Page: the specific portion of a social media website where content is displayed and managed by an individual or individuals with administrator rights.

Post: shall mean any e-mail, message, picture, graphic, image, advertisement, notification, feed, stream, transmission, broadcast, podcast, video, instant message, text message, blog, microblog, status update, wall post, comment, and any and all other forms, means, or attempts at collaboration or communication that is uploaded, posted to, or otherwise displayed on or transmitted by, any Social Media Account or Network.

Authorized User: shall mean any employee who has been authorized by the City Manager to establish, create, edit, or maintain any social media account, and the posts it may contain, in the transaction of official business of the City of Green Cove Springs.

Scope: This policy covers the social media channels that the City currently maintains, including Facebook, Twitter and Instagram, as well as new social media channels and programs that the City adopts in the future.

Roles and Responsibilities: This section of the policy covers the use of social media platforms by the City of Green Cove Springs employees.

Roles: Authorized social media users include the City of Green Cove Springs Communication Coordinator, City Manager and Network Administrator. This is to ensure that messages from the City on social media remain professional and consistent.

Responsibility: The City of Green Cove Springs Communications Coordinator is responsible for monitoring content and comments on all city maintained social media channels.

2

The City of Green Cove Springs official social media accounts will be used for providing information and transparency on the topics of city policy, City Council business, accomplishments, events, programs, news and announcements, to encourage social engagement with city residents, and for emergency alerts as well as information about various City boards and committees. The Communications Coordinator will work with the City Clerk to make sure that all posts are archived and comply with Florida Public Records Laws.

Content: Each post from the City on any of the City’s social media channels should be treated as an official statement from the City of Green Cove Springs. Content needs to have a professional tone, clearly communicating facts and impact of each policy decision, city program, announcement, and any City Council business. The tone can also be conversational when talking about any awards that the City or city employees receive and talking about upcoming City events or Parks and Recreation Programming.

When posting a link, video, or photo, there must be text in the post to give context and direction to the link, video or photo posted. Credit of who took the photo or video must also be included with the post.

Understand that any published content is in the public domain. When speaking on behalf of the City, it should be assumed that all communications are in the public domain and available for publishing and discussion in all forms of media. All content posted by authorized users should represent the City’s point of view, not the point of view of individual employees.

The City will not use its social media channels to promote a private business, nor will the city “like” or “follow” any social media pages of a private business. The City may only “like” or “follow” pages and social media accounts of other counties and municipalities, state and federal agencies, local and regional law enforcement, and local community groups, nonprofits, charitable, and civic clubs.

The City may only promote other events and programs run by Clay County, Clay municipalities, state and federal agencies, local and regional law enforcement, and local community groups, nonprofits, charitable, and civic clubs, or as further authorized by the City Manager. The City may also promote events that the City co-sponsors with a single person or community organization.

City Social Media Accounts – General Procedures

Establishing Social Media Accounts

All City social media accounts will be approved by the Communications Coordinator and City Manager before becoming established online. Approval includes establishing authorized users of the social media account. This is to ensure consistent messaging and information is broadcast across all City Channels.

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Procedures When Establishing and Maintaining a City Social Media Account

Include an introductory statement that clearly specifies the purpose and topical scope of the social media presence, and have the relevant City department’s contact information prominently displayed. Where possible, department social media accounts should link back to City’s official website.

Post the “Public Comments” and “Notice of Public Record” either directly on the social media site or as a link to the PDFs of both on the City Website. The agreement, in addition to its other language, shall clearly indicate that any post is subject to public records disclosure.

Enable features for public comments, if such capability exists, and comply with and enforce the posted Terms of Use agreement.

Make available to the Information Systems Department all content such as text, images, and video placed on social media accounts.

Maintain compliance with all applicable Federal, State, and City requirements, as well as policies and procedures relating to records retention and public records requests.

Accessibility

All content posted on the City website and City social media pages should be made accessible to be in compliance with the Americans with Disabilities Act (ADA). Compliance includes the following:

Use as little hashtags as possible, and when writing hashtags, abbreviations, or acronyms in a post use camel case (capitalizing the first letter of every word without separating words with spaces or punctuation).

Utilize plain text in all social media posts. This means using words that are common and easy to understand, writing in clear, short sentences and writing in the active voice.

When possible, spell out acronyms in the first instance it is used in a post. This will help those using text readers to better understand the agency that the acronym identifies.

Add captions to all photos posted. A simple caption describing the scene of the photo or how elements are arranged in a graphic will allow users who are sight impaired to better mentally visualize the entire post and better understand the message of the post.

Provide closed captioning, or access to captioning, with every video posted.

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Public Comments:

The City of Green Cove Springs uses social media to interact with residents, businesses and visitors about public issues, city programs and events and policy. Please note that this is a moderated online discussion site and is subject to Florida Public Records Laws.

The City reserves the right to delete unacceptable submissions, after they have been archived for public record. The following are examples of unacceptable social networking content and comments. The list is not intended to be all-inclusive. Examples are:

Profane or obscene language or content;

Content that promotes, fosters, or perpetrates discrimination on the basis of race, color, disabilities, religion, sex, national origin, or age, or any other constitutionally protected right;

Solicitations of commerce;

Conduct of illegal activity;

Infringement of copyrights or trademarks;

Confidential or non-public information; and

Information that may tend to compromise the safety or security of the public or public systems.

Please note that the opinions and comments expressed by others on the City’s social media platforms do not reflect the opinions and positions of the City of Green Cove Springs, its officers or employees.

Notice of Public Record

Any communication via City’s social media platforms (whether by a City Employee or the public) are subject to monitoring and disclosure to third parties. In other words, all content posted or submitted for posting to the City’s social media platforms is subject to public disclosure. Relevant City of Green Cove Springs and Florida public records retention schedules apply to social networking content. Records required to be maintained pursuant to a relevant records retention schedule shall be maintained for the required retention period in a format that preserves the integrity of the original record.



SUBJECT: City Council approval to declare law enforcement items listed on Exhibit “A” as surplus and to dispose of according to approved methods. BACKGROUND: The law enforcement equipment listed on Exhibit "A" has been determined to be surplus. City Staff requests authorization to dispose of surplus equipment through approved methods which are in the best interests of the City.

FISCAL IMPACT/FUNDING SOURCE: Funds received will be allocated to the appropriate department funds RECOMMENDATION: Approve the surplus of law enforcement items listed on Exhibit “A” as surplus and to dispose of according to approved methods. MOTION: Approve the surplus of law enforcement items listed on Exhibit “A” as surplus and to dispose of according to approved methods.

Created/Initiated By: Scott Schultz, Asst. Water Utilities Director on 6/10/2019 8:11 AMFinal Approval By: Steve Kennedy, City Manager on 6/12/2019 5:38 PM

Karbon Arms KA03384

Karbon Arms KA03390

Karbon Arms KA03718

Karbon Arms KA02975

Karbon Arms holsters

Amount 5 total (right handed)

M26 Tasers

M26 P8-025232

M26 P8-025196

M26 P4-019955

M26 P4-024309

M26 P3-049623

M26 P4-023555

M26 P8-026616

M26 P8-025224

M26 P4-024665

M26 P8-025218

M26 P3-049615

M26 Missing SN

M26 P4-013974

M26 P8-025195

M26 battery packs

Amount 28 (total)

M26 holsters Amount 17 (total)

M26 chargers Amount 16 (total)



SUBJECT: City Council approval of, and authorization for the Mayor to execute associated documents for, a Request For Inclusion (RFI) to the Florida Department of Environmental Protection (FDEP), Drinking Water State Revolving Fund (SRF) for $356,800.00 for the design of capital improvements to the City's Water System BACKGROUND:

On June 16, 2016 the City Council approved the Rate Study conducted by Staff and Mittauer & Associates.

On March 21, 2017, Council approved a Task Order with Mittauer & Associates for $50,000.00 for development of a Water Master Plan.

On June 19, 2018, the City Council approved the Water Master Plan conducted by Staff and Mittauer. The Master Plan included a thorough review of the existing Water Capital Improvement Program (CIP) and resulted in an update to the CIP. As a result of the updated CIP, Staff requested an update to the Water portion of the Rate Study to evaluate financing options and alternatives to CIP financing.

On September 4, 2018, City Council approved a Task Authorization with Mittauer & Associates for $12,000.00 to update the Water Rate Study.

At the March 5, 2019 City Council meeting Staff and Mittauer presented the updated Water Rate Study which was subsequently approved by the City Council. The City Council directed staff to return with an Ordinance authorizing the borrowing of funds to complete the immediate and future CIP needs. Staff was also directed to draft an RFP to secure a loan for the “Priority 1” immediate need CIP projects.

The Priority 1, Reynolds Water System Improvements, total design and construction estimate is $1,370,000.00

The Priority 2, Harbor Road, Bonaventure and Magnolia Point Cul-de-sac, total design and construction estimate is $4,850,000.00.

The Priority 3, Reynolds High Service Pumps & Well 2 design and construction estimate is $2,500,000.00.

The Priority 4, asbestos concrete (AC) pipe replacement. Design and construction estimate is $6,620,000.00

The Priority 5, Governors Creek Water Main, design, and construction estimate is $360,000.00

Design and permitting for Priorities 3-5 cost estimate is $1,424,000.00

Total 2019 Water CIP Cost Estimate is $17,124,000.00

Council approved Ordinance No. O-07-2019 on First Reading as to Form Only on 3/19/19 which authorized staff to borrow up to $18,000,000.00 for capital improvements to the City's Water System.

Council approved Ordinance No. O-07-2019 on Second and Final Reading on 4/2/19 which authorized staff to borrow up to $18,000,000.00 for capital improvements to the City's Water System

This request is for authorization to submit an RFI to the FDEP-SRF Program for funding to design certain capital improvements to the City's Water System to be prepared to move into construction as the needs arise.

The application will include the Draft Business Plan (which will become final after FDEP review) and the Facilities Plan which is the previously approved Water Master Plan. The full Facilities Plan (Water Master Plan) was not attached to this agenda due to size. FISCAL IMPACT/FUNDING SOURCE: $356,800.00 (assuming no grant) from the Water Fund Capital Improvement Program budget, Retained Earning or other funding sources as determined and approved. Actual loan amount to be determined by potential grant amount received RECOMMENDATION: Approve of, and authorize the Mayor to execute associated documents for, a Request For Inclusion (RFI) to the Florida Department of Environmental Protection (FDEP), Drinking Water State Revolving Fund (SRF) for $356,800.00 for the design of capital improvements to the City's Water System MOTION: Approve of, and authorize the Mayor to execute associated documents for, a Request For Inclusion (RFI) to the Florida Department of Environmental Protection (FDEP), Drinking Water State Revolving Fund (SRF) for $356,800.00 for the design of capital improvements to the City's Water System

Created/Initiated By: Scott Schultz, Asst. Water Utilities Director on 6/11/2019 1:17 PMFinal Approval By: Steve Kennedy, City Manager on 6/12/2019 5:40 PM

DRINKING WATER STATE REVOLVING FUND BUSINESS PLAN

Sponsor Name: City of Green Cove Springs System Population: 7,900±

DWSRF Project #: PWS ID#: 2100437

Contact Person and Title: Mike Null, Assistant City Manager Telephone: 904-297-7500 x3324

Mailing Address: 321 Walnut Street City: Green Cove Springs State: FL Zip: 32043

Contact for Finance Plan (if different): Telephone:

Mailing Address: City: State: Zip:

e-mail: [email protected] Fax:

Source Type: Ground Water Purchase Water Surface Water Surface/Ground Combined

The Drinking Water State Revolving Fund Program (DWSRF), authorized by the 1996 amendments to the Safe Drinking Water Act, provides financial assistance to public water systems (PWS). To obtain this assistance, project sponsors must demonstrate Capacity Development or demonstrate how the assistance will ensure these requirements are met. The term Capacity Development takes into consideration three vital areas of a public water system: Technical, Managerial, and Financial capabilities.

FINANCIAL A financial capability demonstration (and certification) is required well before the evaluation of the actual loan or grant application. This demonstration is necessary to ensure that the system has the financial capability to repay the loan, if applicable, and to adequately operate and maintain the system. Financial capability also includes funding future capital improvements that may be required. Please see Rule 62-552.700(4) in Chapter 62-552, F.A.C. for further details. It is expected that the revenues to be dedicated to repaying a loan will be generated either from water and sewer utility operations or from water utility operations alone. If the source of revenues will not be from such enterprises, this set of worksheets alone will not satisfy the Department's needs. (Please contact the Department for further guidance if dedicated revenues will be generated externally to such utilities.) The following worksheets have been developed to identify the minimum information needed. The completed worksheets should be used in disclosing DWSRF project financing to the public during the required dedicated revenue hearing. The worksheets can serve to identify the impacts of the SRF project on residential users and how the project fits into the project sponsor’s overall capital improvement program for the water and sewer utility (or water utility, as appropriate). Supplemental capital financing documentation may be submitted with these worksheets and may be presented at the required dedicated revenue hearing. The revenues being dedicated to repayment of the DWSRF loan are: Water System What is the frequency of water system billing? Monthly How often are system rates reviewed for adequacy? Annually When was the last time rates were reviewed? Feb 2019 What resources and guidance does the water system use for setting water

user rates, fees or charges? Rate Studies & Audits

What is your water system bond rating? Is a rate increase necessary as a result of this project? Yes What is the Median Household Income (MHI) for the entire system? $50,366 Which, if any, of the following activities must be undertaken to implement the DWSRF project? Acquire privately held land? Yes No Acquire land held by another public water system entity? Yes No Enter into inter-local or inter-project sponsoring agency’s agreements? Yes No Does the system have an annual budget with a separate reserve account for equipment

replacement and/or capital improvement? Yes No

Does the system have a capital improvement plan? How many years does it cover? 5 Yes No Does the system have a governing board of directors? Yes No Does the water system employ the services of a professional engineer? Yes No

Are there procedures for billing and collection? Yes No Does the system have audited financial statements? Yes No Are there standard purchasing procedures that provide controls over expenditures? Yes No What year will construction be completed and repayments begin (for the first project)? 2022 What is the estimated cost of your SRF project? $4,850,000 ($650,000

Design; $4,200,000 Construction)

Please attach a copy of the user charge ordinance.

Table 1 WATER RATE REVENUE SUMMARY

LAST YR.

2018 YEAR 1

(Current Year) 2019

YEAR 2 2020

YEAR 3 2021 SRF Project

2022

1. Number of Residential Customers ^ 3,850 3,927 4,006 4,086 4,168

2. Number of New Residential Service Connections 75 77 79 81 83

3. Annual Residential Water Sales ^ (Gallons) 212,110,724 216,352,928 220,679,997 225,093,597 229,595,469

4. Avg Daily Residential Usage (Gal/day) ^ (Line 3 divided by line 1 divided by 365)

581,125 592,748 604,603 616,695 629,029

5. Annual Residential Water Sales ($) ^ $941,920 $960,758 $979,973 $999,572 $1,019,563

6. Average Annual Residential Bill (line 5 divided by line 1) $244.65 $249.54 $254.53 $259.62 $264.81

7. Annual Residential Bill Amount Uncollected $3,700 $3,774 $3,849 $3,926 $4,005

8. Total Residential Rates Collected (Line 5 minus line 7) $938,220 $956,984 $976,124 $995,646 $1,015,558

9. Impact and Connection Fees per Residential Service $1,000 $1,020 $1,040 $1,061 $1,082

10. Total Residential Impact and Connection Fees (Line 2 times line 9) $75,000 $78,540 $82,160 $85,941 $89,806

11. Number of Commercial Customers ^ 590 602 614 626 639

12. Number of New Commercial Service Connections 10 10 10 10 10

13. Annual Commercial Water Sales (Gallons) 80,201,300 81,805,326 83,441,433 85,110,262 86,812,467

14. Annual Commercial Water Sales ($) $403,680 $411,754 $419,989 $428,389 $436,957

15. Annual Commercial Bill Amount Uncollected $2,000 $2,040 $2,081 $2,123 $2,165

16. Total Commercial/Industrial Bills Collected (Line 14 minus line 15) $401,680 $409,714 $417,908 $426,266 $434,792

17. Impact and Connection Fees for Commercial Service $2,000 $2,040 $2,081 $2,123 $2,165

18. Total Commercial Impact and Connection Fees (Line 12 times line 17) $20,000 $20,400 $20,810 $21,230 $21,650

19. Bulk Water Sales 0 0 0 0 0

20. Total Projected Water Revenue (Line 8+10+16+18+19) $1,434,900 $1,465,638 $1,497,002 $1,529,083 $1,561,806

* Large meters should be checked annually for accuracy. ^ Includes separate irrigation meter accounts

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Instructions for Completing Table 1

Identify the source of the above information and explain methods used to develop the projections (Attachment # A). Include an explanation of any revenue and expense growth or other adjustments; for example, any rate increases, service growth, inflation adjustments, expense adjustments reflecting the cost of operating additional facilities, or other considerations. In completing this table assume through year 3 that no SRF project is constructed. In the “ SRF Project” column enter the numbers that reflect the first year in which the SRF loan will begin repayments. When completing the numbers in this column assume that the SRF project will be financed using 100% loan funding.

Line 1 Include the actual number of customers for last year and year 1 (current year). The numbers in years 2 and 3 should reflect an estimated number of residential customers, adjusted for growth. In the SRF column include the expected number of customers based on constructing your SRF project.

Line 2 This line is a subset of line 1. It should reflect the number of new customers for that year.

Line 3 This line is your total volume (gallons) of water used by your residential customers. Use actual gallons sold for Last Year and do an estimate for the current year based on total to-date. To determine Year 2 and 3 water sales, first calculate the average daily residential usage in gallons per day on line 4. The estimated water sales for Year 2 and 3 can now be determined by multiplying line 4 by line 1.

Line 4 This is the average daily residential usage (gallons per day) by a single residential customer. To get this number divide line 3 by line 1. Use Last Year and Current Year to project usage for Year 2 and 3. Usage should be fairly constant.

Line 5 This is your total residential water sales in dollars. Year 2 and 3 water sales should reflect any increases in rates (i.e. due to inflation). In the SRF column list what the sales would need to be if the SRF project was a 100% loan (to meet all expenses).

Line 6 To obtain the average annual residential bill, divide line 5 by line 1.

Line 7 This is the amount of the uncollected residential bills outstanding for the year.

Line 8 Line 5 minus line 7.

Line 9 This line is the impact and connection fee for new residential service.

Line 10 Multiply line 2 by line 9.

Line 11 Include the actual number of customers for last year and year 1 (current year). The numbers in years 2 and 3 should reflect an estimated number of commercial customers, adjusted for growth. In the SRF column include the expected number of customers based on constructing your SRF project.

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Line 12 This line is a subset of line 11. It should reflect the number of new customers that will be charged an impact or connection fee.

Line 13 This line is your total volume (gallons) of water used by your commercial accounts.

Line 14 This is your total commercial water sales in dollars. Year 2 and 3 water sales should reflect any increases in rates (i.e. due to inflation). In the SRF column list what the sales would need to be if the SRF project was a 100% loan (to meet all expenses).

Line 15 This is the amount of the uncollected residential bills outstanding for the year.

Line 16 Total revenue collected for commercial accounts (line 14 minus line 15).

Line 17 This line is the impact and connection fee for new commercial/industrial accounts.

Line 18 Multiply line 12 by line 17.

Line 19 Total revenue for bulk water sales to consecutive systems.

Line 20 Total of line 8+10+16+18+19.

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TABLE 2

INCOME, EXPENSES, AND CASH FLOW STATEMENT Income, Expense, and Cash Flow Statement Last Yr.

2018 Year 1 2019

Year 2 2020

Year 3 2021

SRF Project 2022

OPERATING REVENUES 1 Water Rates $1,345,600 $1,372,512 $1,399,962 $1,427,961 $1,456,520

2 Fire Protection $19,600 $19,992 $20,392 $20,800 $21,216

3 Fees and Services & Water Taps $97,800 $99,756 $101,751 $103,786 $105,861

4 Interest Income $10,700 $10,914 $11,132 $11,355 $11,582

5a Other – Extension Reimbursement $1,650 $1,683 $1,717 $1,751 $1,786

5b Other – Misc., Bad Debt, Collection, Consultant Reimbursement

$1,140 $1,163 $1,186 $1,210 $1,234

6 Total (Lines 1 - 5) $1,476,490 $1,506,020 $1,536,140 $1,566,863 $1,598,200

NON-OPERATING REVENUES 7 Interest Income

8 Interfund Transfer

9 Proceeds from the Sale of Assets $1,800 $1,836 $1,873 $1,910 $1,948

10 Leases and Extraction Fees

11 Construction Grants

12 Proceeds from Borrowing

13 Equity Contribution

14 Other -

15 Total (Lines 7 - 14) $1,800 $1,836 $1,873 $1,910 $1,948

OPERATING EXPENSES OPERATION AND MAINTENANCE

16 Salaries (Operators) & Benefits $482,500 $492,150 $501,993 $512,033 $522,274

17 Plant & Line/Hydrant Maintenance $65,200 $66,504 $67,834 $69,191 $70,575

18 Utilities-Electric $67,000 $68,340 $69,707 $71,101 $72,523

19 Chemicals & Treatment $29,000 $29,580 $30,171 $30,774 $31,389

20 Monitoring $47,800 $48,756 $49,731 $50,726 $51,741

21 Materials, Supplies & Parts $37,820 $38,576 $39,348 $40,135 $40,938

22 Transportation $11,700 $11,934 $12,173 $12,416 $12,664

23 Est. Maintenance $36,400 $37,128 $37,870 $38,627 $39,400

24 Outside Services – $10,700 $10,914 $11,132 $11,355 $11,582

25 Other – Auditing, Communications, Insurance, Other

$38,700 $39,474 $40,263 $41,068 $41,889

26 Total (Lines 16 – 25) $826,820 $843,356 $860,223 $877,427 $894,976

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ADMINISTRATIVE 27 Salaries and Benefits Note 1 ----- ----- ----- -----

28 Building Overhead Note 1 ----- ----- ----- -----

29 Office Supplies & Postage Note 1 ----- ----- ----- -----

30 Insurance Note 1 ----- ----- ----- -----

31 Customer Billing & Collection $91,400 $93,228 $95,093 $96,995 $98,935

32 Accounting and Legal Note 1 ----- ----- ----- -----

33 A/E & Professional Services Note 1 ----- ----- ----- -----

34 Other -

35 TOTAL (Lines27 – 34) $91,400 $93,228 $95,093 $96,995 $98,935

36 Net Operating Income (Line 6 minus 26 minus 35)

$558,270 $569,435 $580,824 $592,440 $604,289

NON-OPERATING EXPENSES

37 Debt-Repayment – Principal and Interest

$172,500 $350,000 ----- ----- -----

38 Capital Improvements Acquisition of Plant Equipment

$120,380 $122,788 $125,244 $127,749 $130,304

39 Interfund Transfers $177,000 $180,540 $184,151 $187,834 $191,591

40 To General Fund Note 1 ----- ----- ----- -----

41 To Replacement Fund

42 To Emergency Fund

43 Depreciation Expenses (If money is set aside)

44 Other -

45 TOTAL (Lines 37 + 44) $469,880 $653,328 $309,395 $315,583 $321,895

46 Net Non-Operating Income (Line 15 minus Line 45)

<$468,080> <$651,492> <$307,522> <$313,673> <$319,947>

47 Net Income Before Taxes (Lines 36 + 46)

$90,190 $<82,057> $273,302 $278,767 $284,342

TAXES (N/A for publicly owned systems)

48 Income Taxes N/A

49 Other Taxes N/A

50 TOTAL (Lines 48 + 49) N/A

51 Net Income After Taxes (Line 47 minus 50)

$90,190 <$82,057> $273,302 $278,767 $284,342

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Instructions for Completing Table 2 Identify the source of the above information and explain methods used to develop the projections (Attachment # A). Include an explanation of any revenue and expense growth or other adjustments; for example, any rate increases, service growth, inflation adjustments, expense adjustments reflecting the cost of operating additional facilities, or other considerations. REVENUES- Revenues include all sources of income to the system. They are separated on this form

as: “Operating”, lines 1-6 and “Non-Operating”, lines 7-15. When using the subcategory “other” under any item, please write a descriptive term.

EXPENSES- Expenses include all those activities or purchases which incur cost for the system.

Expenses can be estimated in various ways. One method bases the projections on historical expense. This can be accomplished by using historical costs and escalating them from known and projected changes. An example of a known change would be an increase in labor costs for the budget period due to known or anticipated salary increases. An example of a projected increase or escalation in costs would be a 5% annual inflation rate. Materials and Supplies expense, for instance, would be expected to increase with the projected inflation rate. Expenses are separated on this form in the same fashion as Revenues with further subtopics to more clearly define expenses. When using the subcategory “other” under any item please write a descriptive term and cross out the word “other”. Expenses are separated on this form as “Operating”, lines 16-26, “Administrative”, lines 27-35, “Non-Operating”, lines 37-45, and “Taxes” lines 48-50.

Lines 1 This line includes all money received for supplying water service. Information should

come from completed Attachment 1. Line 2 If a separate fee is charged for fire protection include on this line. Line 3 Include all miscellaneous fees and charges generated by providing water service other

than for the actual water service (for example, connection fees, bad check fees, reconnect fees, meter testing fees, etc.).

Line 4 Interest earned from cash on hand or on fees financed by the utility. Line 5 If used, please describe. Non-operating revenues are funds generated outside the water system and used by the water system to cover expenses. Lines 7-15 Items should be clear, modify topics if needed. Lines 16-17 Salaries and Benefits (Operators), include all compensation to employees of your system

when the work is related to the system's O&M. This account should not include compensation of officers, directors, or general and administrative staff. Volunteer labor cannot be applied.

Line 18 Utilities, includes the cost of all electric power, gas, telephone, water (at least account for

what is being used at the plant), and any other system-related expenses incurred in producing and delivering water.

8

Line 19 Chemicals and treatment is intended to cover the cost of all chemicals used in the

treatment of your water. Line 20 Monitoring, includes all water monitoring costs incurred by the system. This should

include both in-house monitoring and analysis costs as well as outside laboratory costs. Line 21 Materials, supplies, and parts means all materials and supplies used in the O&M of the

water system and in providing and delivering the water to the customer. Include any repairs or parts needed in producing and delivering water. This would include grease, oil, and minor repairs to equipment. This should not include materials for administrative purposes such as postage, copying or copy machine supplies, billing forms, or letterhead.

Line 22 Transportation is intended to include all expenses related to trucks, automobiles,

construction equipment, and other vehicle expense used in producing and delivering water to the customer.

Line 23 Include the cost of purchasing water. Use only if a consecutive system. Administration expenses are considered overhead but not those directly related to O&M of the daily production and delivery of water to the customer. This category includes billing and administrative costs incurred by the system. For example, all meter reading costs, secretarial costs, postage, publications, reference materials, uncollectible debts insurance accounting services, and all other overhead items belong in this subsection. Lines 27 Salaries and Benefits include all compensation to employees of your system in which the

work is related to the administration of the system, such as officers, directors, secretarial, and meter reading salaries and benefits. This account should not include compensation of operators. If an employee performs both operation and meter reading a percentage of their salary should appear under the appropriate topic. For example, if an operator reads meters 25% of the time, ¾ of their salary should be shown on line 16 and ¼ of their salary on line 27.

Line 28 Overhead associated with the building itself such as, mortgage payment, insurance, taxes,

maintenance, etc. Line 29 Office supplies and postage includes all materials and supplies in administration of the

water system. This includes office supplies, postage, copier charges, and paper. Line 30 Insurance (Vehicles, Liability, Workers' Compensation) includes all insurance costs

associated with the coverage for the vehicles, general liability, workers' compensation insurance, and other insurance costs related to the operation and administration of the system.

Line 31 Customer billing and collection should include all expenses specific to this function such

as, special billing forms or software. Lines 32 Accounting and legal expenses includes all salaries and wages with legal and accounting

functions for the system even if they are outside services.

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Line 33 A/E and professional services means all engineering and other professional services

expenses associated with water system planning and design requirements. Line 34 Other means expenses such as employee training and water certification requirements

(classes, registration fees, travel, etc.), public relations campaigns and public notifications, etc. Also include any recurring expenses that did not fit into any of the above line items.

Non-operating expenses are ones that are necessary and paid by the water system, but are not part of daily O&M or Administration of the system. Debt Repayment and Capital Improvements are typical items that may appear on this type of analysis. Lines 37-42 Expenses that are involved in operating or administering the water system that were not

considered in the totals appearing on lines 26 and 35 should be shown in these items, modify if necessary.

Line 38 Capital improvements include facility and non-facility costs related to: 1) Meeting growth

requirements or improving your system’s infrastructure to provide better service and reliability to existing customers, 2) replacing or renovating existing facilities, or 3) to ensure compliance with drinking water regulations.

Line 39-42 Identify any transfer of funds used to offsets other non-water system related capital

expenditures. These lines represent some possible categories, modify if needed. Line 43 Depreciation expense only applies to systems which are currently depreciating

investments made in the past (recovery of previously invested funds). Include amounts on this line only if money is actually set aside.

Line 44 Include any recurring non-operating expenses that did not fit into any of the above line

items. Taxes can be incurred in a variety of ways such as a state utility tax, business and occupation tax, property tax or federal income tax. Each of these taxes can be accounted for separately within the operating budget, modify if necessary. Lines 48-49 Include any incurred taxes.

10

Identify Each Obligation Coverage Insured?#1 N/A N/A#2#3#4#5

Fiscal Year #1 #2 #3 #4 #5

Total Debt Service

Total Debt Service

Incl. Coverage

2018 $172,500 $172,500 $172,5002019 $344,992 ^ $344,992 $344,99220202021202220232024202520262027202820292030203120322033203420352036203720382039^ City paid off debt in FY '19.

Annual Debt Service (Principal Plus Interest)

Table 3SCHEDULE OF PRIOR, PARITY, AND PROJECTED LIENS

List annual debt service beginning two years before the anticipated loan agreement date and continuing at least fifteen fiscal years. Include all existing and projected liens on the system. Use additional pages as necessary.

Hancock Bank

11

SCHEDULE OF PRIOR, PARITY, OR PROJECTED REVENUES AND DEBT COVERAGE FOR RATE-BASED SYSTEM PLEDGED REVENUE

(Provide information beginning with the two fiscal years preceding the anticipated date of the first SRF loan repayment.)

FY FY FY FY FY (a) Net Operating Revenues.

(Table 2 line 36)(b) Debt Service (including required

coverage) pledged to all prior,parity, or projected projects (lastcolumn of Table 3).

(c) Net Revenue (= a – b)

(d) Attach audited annual financial report(s), or pages thereof, and any other documentationnecessary to support the above information. Include any notes or comments from the auditreports regarding compliance with covenants of debt obligations having a prior or parity lienon the revenues pledged for repayment of the SRF loan. (Attachment # B)

(e) Attach worksheets reconciling this page with the appropriate financial statements (forexample, backing out depreciation and interest payments from operating expenses).(Attachment # A)

(f) If the net revenues were not sufficient to satisfy the debt service and coverage requirement,please explain what corrective action was taken. (Attachment # )

(k) Identify the source of the above information and explain methods used to develop theprojections (Attachment # A). Include an explanation of any revenue and expense growthor other adjustments; for example, any rate increases, service growth, inflation adjustments,expense adjustments reflecting the cost of operating additional facilities, or otherconsiderations.

LIST OF ATTACHMENTS (use additional sheets if necessary)

Attachment Number 2019 Water System Rate Analysis A FY ’17 & FY ’18 Audit B

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TECHNICAL: Accurate answers to the following questions will help identify the technical strengths as well as areas that may need improving within your system. If a question or section does not apply to your system, please write N/A for not applicable. For questions that ask you to rate your system from 1 to 5, answer 1 for worst case scenario and answer 5 for the best case scenario. • System has current and accurate data showing average and peak gpd used Yes No • System’s capacity exceeds peak demand by more than 20% (Percentage - 100%) Yes No • System can meet peak demand without pumping at peak capacity for extended periods. Yes No • System has an emergency plan in place to meet system demand during a shortage (natural disaster or largest pump/well out, etc.) Yes No • System has accurate records indicating types and percentage of customers use: Yes No Residential 43% Commercial 20% Industrial 1% Dedicated Irrigation Meter 36% • System has comprehensive water loss program that compares amount of water produced (plant meter) with total delivered through metered and unmetered service connections (system’s unaccounted for water is > 10%) Yes No Purchase Water Systems NA System has a written agreement with the supplier that: • ensures adequate supply of water during shortage conditions, Yes No • does not require the purchase of a minimum amount of water (water is

supplied through a meter), Yes No • assures supplying water system will remain in compliance with the appropriate State or federal regulations, and Yes No • assures purchasing system will be notified of any water quality issues. Yes No Surface Water Systems and Systems Using Ground Water Under the Influence of Surface Water NA • System has redundancy for all critical treatment components 1 2 3 4 5 • System monitors raw, settled, and individual filtered water turbidity 1 2 3 4 5 • System consistently (95% of the time) has a filtered water turbidity of %, which is within the current standard of .3 NTU 1 2 3 4 5 • System has the capability to add coagulant before the filter and disinfect at various points in the treatment process 1 2 3 4 5 • System is evaluating (or has evaluated) changes necessary to meet the Enhanced Surface Water Treatment Rule 1 2 3 4 5

Some needed changes are:

• System is evaluating (or has evaluated) changes needed to meet requirements in the Disinfection By Products Rule 1 2 3 4 5

Some planned modifications are:

Ground Water System NA • A minimum of two sources of groundwater are provided Yes No • Source water protection area provides a minimum 500 foot radius around each drinking water well Yes No • Groundwater source capacity equals or exceeds the design maximum day demand

and equals or exceeds the design average day demand with the largest producing well out of service Yes No

• System monitors raw water quality to determine appropriate treatment 1 2 3 4 5

13

• System’s well(s) have; air/vacuum relief valve, check valve, blow-off, by-pass, meter,working sanitary seal, construction/maintenance records and are properly vented 1 2 3 4 5

• System routinely monitors drawdown 1 2 3 4 5

Disinfection

• System has adequate contact time of > 25 minutes following disinfection andbefore the first user in the distribution system Yes No

• Disinfection equipment is regularly inspected and maintained Yes No • A chlorine residual is maintained throughout the distribution system 1 2 3 4 5

Distribution System

• System has accurate information, including age, for pipe materials thatcurrently make up the distribution system 1 2 3 4 5

• Water mains providing fire protection are a minimum of 6-inches in diameter Yes No • System is free of severe “water hammer” problems 1 2 3 4 5 • System tracks ranges of operating pressure, especially during peak demand 1 2 3 4 5 • System maintains a minimum operating pressure of 20 psi Yes No • Normal operating pressure is kept between 40 and 100 psi 1 2 3 4 5 • System has a routine leak detection program that uses (type of equipment) ,

repairs identified leaks quickly, and keeps water loss in the distribution systembelow 10%. Average number of leak repairs per year is 1 2 3 4 5

• System has a cross connection control program in place that addresses:evaluation of each service connection, installation of specified backflow

preventer, training, record keeping, annual testing, and education 1 2 3 4 5 • System is working to eliminate dead ends in the mains 1 2 3 4 5 • System has a flushing program that operates times a year N/A 1 2 3 4 5 • System has a map showing the bacteriological, lead and copper, and

TTHM (if applicable) sampling points 1 2 3 4 5 • System has accurate “as-built” maps of the distribution system posted that show:

location of sources (or intakes), size of mains, dead end mains, valves, curb stopson service lines, and proximity of mains to other utilities (gas, electric, etc.) 1 2 3 4 5

• System has a routine valve exercise program 1 2 3 4 5 • All customers are metered and all meters are routinely calibrated 1 2 3 4 5 • Customer complaints are relatively infrequent 1 2 3 4 5

List number of complaints in the past year: .

Pumping

• System has a pump maintenance program that includes annual inspection, schedulingof repair, and routine maintenance that is conducted by a qualified contractor 1 2 3 4 5

• System has standby or emergency power equipment that is routinely testedunder load and can provide 100% of the average daily demand for days 1 2 3 4 5

Storage

• System is able to meet peak demand without the high service pumps runningat peak capacity for extended period 1 2 3 4 5

• System has adequate reserve capacity for fire protection. 1 2 3 4 5 Total storage capacity of the system is 1,325,000 gals

• System’s 7 storage tanks receive routine inspection (every 3-5 years) todetermine and schedule any needed maintenance 1 2 3 4 5

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• All storage tanks are equipped with an altitude valve to prevent overflowing and are sized appropriately to ensure adequate turnover and no loss of water quality 1 2 3 4 5 • Storage tanks are covered and the surrounding areas are fenced 1 2 3 4 5 • Storage tanks have a drain valve and an entry hatch to allow access for cleaning and painting of the interior of the tank 1 2 3 4 5

15

MANAGERIAL: Answering the next set of question will help the system clearly define responsible parties, staffing needs, operational needs, policies, and internal standard that guide system performance. For questions that ask you to rate your system from 1 to 5, answer 1 for worst case scenario and answer 5 for the best case scenario.

• System has a current organizational chart and accompanying positiondescriptions that clearly define responsibilities of staff members 1 2 3 4 5

• The plant is a category 5C plant operating 24 hours per day.

List names, class, and license numbers for all operators fulfilling staffing requirements:

• System is satisfied with service provided by contract operator(s) NA 1 2 3 4 5 • The operator’s authority and responsibilities are clearly defined 1 2 3 4 5

Policies and Plans: Please indicate with a check mark the items for which the water system has written policies or plans.

standard specifications connection policies main extension policies bacteriological sampling plan emergency operation plan Lead & Copper sample plan cross connection control plan record management plan TTHM general rules disconnection policy public education & outreach disaster response plan personnel policy Safety/Risk Management Policy

• Based on the answers above the system has: clear organizational structure,defined staffing requirements, and appropriate rules/policies 1 2 3 4 5

Operations and Maintenance: The items that follow are elements that may be contained in a thorough Operations and Maintenance (O&M) manual. A complete O&M manual is useful as a quick reference for anything from trouble shooting to emergency procedures. Please indicate with a check mark those items contained in the system’s O&M manual.

Introduction and Overview location water source

System name: Green Cove Springs Grid design flow capacity available training

System ID#2100437 type of treatment publications available

Statement of the purpose of the manual and relay to the operator how to best obtain pertinent information

organizational chart (note which activities require qualified and licensed/certified personnel)

General System Description a flow schematic (source to distribution) pumping capabilities (source, chemicals, and high service) storage (raw, finished water, and chemicals) system map showing location of all wells, intake structures, pumping stations, storage tanks, and the

defined service area

System Operation and Control identification of major system components including a description of the normal operation of each

component possible alternative operation modes and circumstances under which they would be used schematic diagrams of each treatment process

X

16

preventative maintenance program (include inspections performed when the facility is off-line) common operating problems with methods of bypassing while being repaired importance of and how to use laboratory tests for process control routine system operation for each major system component this should include startup and shutdown

procedures, safety procedures, and meter reading evaluation of overall system performance

Laboratory Testing identification of samples and tests needed for compliance as well as for process control. sampling locations, time, and methods how to interpret laboratory results and the use of these results to improve the process what should be in laboratory supply and chemicals inventory list of laboratory references; instructions for filling out worksheets for a sample (include completed example) for tests to be performed by outside laboratories, the name of the laboratory, contact person, telephone

number, and method of requesting sample pick-up or schedule for sample pick-up

Records and Reports Section a general explanation of the purpose and importance of accurate records and reports a log of complaints and responses daily logs, maintenance records, laboratory records, monthly reports, monitoring reports, sanitary

surveys, annual reports, operating cost reports, and accident reports. historical records (permits, standards, pumping capacity, consumption, and drawdown) list of equipment warranties and provisions specific area for filing records procedures for reporting to appropriate agencies (specify how long records should be kept)

Maintenance general information including purpose and value of scheduled and preventative maintenance preventative maintenance schedule and sample worksheets with instructions specifications for fuels, lubricants, filters, etc. for equipment troubleshooting charts or guides which reference pages in manufacturers' O&M manual or system’s

O&M manual as appropriate a record of data plate information on each piece of equipment maintained, this should include

manufacturers' maintenance schedule for routine adjustments a work order system for maintenance of equipment with sample forms to accurately track O&M costs

for each piece of equipment brief operation instructions for each piece of equipment with reference to the manufacturers’ technical

specifications for major system components a mechanism for storage and check out of specialized equipment used infrequently list of outside contract maintenance tasks contact person and phone numbers for equipment manufacturers, major suppliers, and all utilities

serving the system list of special tools used and how to replace stocks of spare parts, supplies, chemicals and other items vital to system operation

a system of requisitions and/or work orders used to distribute parts, supplies, chemicals, etc. for reorder purposes

Emergency Response Program pre-response activity such as; personnel assignments, emergency equipment inventory, filling a storage

tank before a storm hits, copies of all emergency numbers. Laminated copy of phone numbers to keep readily accessible should include water system personnel responsible for making decisions in specific situations; including name, job title, home and work phone number (pager/cell phone number if available), police, fire departments, and for chemical spills or exposure CHEMTECH 800-424-9300.

XXXX

XX

XXXX

XXX

XXXX

XXXX

X

X

X

XXX

XXX

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safety procedures for all personnel involved in the response a contingency plan to ensure proper treatment of water even in adverse conditions which may include

agreements with nearby water systems for equipment or personnel procedures for putting standby and emergency sources into active service procedures for notifying customers, the local health jurisdiction, and EPA of water quality problems systematic procedure for returning to normal operation

Appendix The appendix can contain documents and other information that cannot be easily incorporated into the body of the manual. Large documents such as copies of plans and specifications may be stored separately from the main manual. The following list has examples of items that might be included in appendices. Please check all that apply to your O&M Manual.

Detailed design criteria User Charge System Approved shop drawings Schematics Piping color codes Valve indices or schedule As-built drawings Drinking water rules/Ordinance Manufacturers' manuals

• Based on the answers above please rate the system’s current O&M Manual. 1 2 3 4 5

The last set of questions is designed to help you evaluate the systems’ source(s). Please read the item then circle the number from 1 (needs improving) to 5 (top notch) that you feel best describes your systems’ current status relative to that item or check boxes as appropriate.

• System has an active Source Water Assessment Program 1 2 3 4 5

For Ground Water Systems: • System has accurate historical information (like well driller’s log

and construction records) for each well 1 2 3 4 5 • Well(s) have the "zone of contribution” identified on a map 1 2 3 4 5 • No storage of potential contaminants in close proximity of well(s) 1 2 3 4 5 • Well(s) are housed and fenced and have an appropriate concrete pad 1 2 3 4 5 • Well casing(s) extend at least 12" above floor or ground 1 2 3 4 5

Name of aquifer is known: Yes No Aquifer is: Upper Floridan Confined Unconfined

For Surface Water Systems: • Commercial, industrial, or agricultural operations up stream are identified 1 2 3 4 5 • System has provided a contact to these facilities in case of an accidental release 1 2 3 4 5 • System performs up stream monitoring 1 2 3 4 5 • System has a raw water reservoir of gallons that acts as a buffer 1 2 3 4 5

Overall: • System has adequate knowledge and program activity to protect and

ensure an adequate supply of drinking water 10 years into the future 1 2 3 4 5

XX

XXX

XX

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CERTIFICATION: I, the undersigned authorized representative of the applicant, hereby certify that all information contained in this form and attachments is true, correct, and complete to the best of my knowledge and belief. I also certify that I have been duly authorized to file the business plan and to provide these assurances.

Signature of Authorized Representative

Name (Please Print)

Title

Address 321 Walnut Street

City Green Cove Springs State FL Zip 32043

Phone (904) 297-7500 Fax

Steven Kelley

Mayor

Attachment A DEP SRF Water System ImprovementsSRF Loan Application (Design Phase) City of Green Cove Springs, FloridaMittauer & Associates, Inc. Project No. 8905-53-1

2019 Water System Rate Analysis

WATER SYSTEM RATE ANALYSIS

FOR


Prepared by:

MITTAUER & ASSOCIATES, INC.Consulting Engineers

Orange Park, FloridaProject No. 8905-48-1

February 2019

2/25/2019

WATER SYSTEM RATE ANALYSIS

FOR


Prepared by:

MITTAUER & ASSOCIATES, INC.Consulting Engineers

Orange Park, FloridaProject No. 8905-48-1

February 2019

EXECUTIVE SUMMARY

In 2010, the City of Green Cove Springs completed a comprehensive water and sewer rate

study that resulted in a modification to their user rates and implementation of a water

conservation rate structure. Prior to 2010, the City had maintained the same water and

sewer rate structure for approximately twelve years. Six years later, an updated water and

sewer rate analysis was completed in August 2016 to determine if rate modifications were

necessary based on the City’s planned sewer system capital improvements and other

water improvements that were being considered. Following long-term capital improvement

decisions associated with the City’s sewer and reclaimed water systems, the City decided

to complete a Water System Master Plan in 2018 to provide a comprehensive review of

their potable water infrastructure and long-term capital needs. As a result of the various

reviews and analysis, an update to the water system’s rates is necessary as the City

considers funding various capital needs.

The enclosed Water Rate Analysis (“Rate Study”) reviews the implications of the known

capital requirements or improvements impacting the City in the coming five (5) years along

with other recommendations for funding the operation and maintenance of the water

system. Consideration is also given towards potable irrigation rates, but further policy

discussions will be needed to define how the rate structure is shaped to promote water

conservation as well as provide reasonable rates for older communities that were

constructed with larger lots with covenants and restrictions relative to landscaping

conditions.

A detailed analysis of the City’s various budget items were completed, and the following

general assumptions were built into future revenue requirements for the water enterprise

fund:

1. Non-financed capital improvements being funded from ‘Revenue’ sources were

programmed into year-to-year expenses within the rate review. The City’s current

5-year capital improvement plan was utilized to forecast ‘Revenue’ funding needs

from year to year. Those non-financed capital improvements being funded from

‘Depreciation Reserve’, ‘Reimbursable’, ‘Private Developer’, ‘Trust Fund’, or

‘Retained Earnings’ were not considered in year-to-year revenue needs since

they are funded from sources outside of a particular year’s general revenue

stream derived specifically from the utility’s operation;

Water System Rate AnalysisCity of Green Cove Springs, Florida February 2019Mittauer & Associates, Inc. Project No. 8905-48-1 ES 1

2. Financed capital improvements were considered as defined within the City’s

5-year capital improvement plan as projects either funded via ‘Loan Proceeds’ or

‘Other’ categories;

3. Ongoing maintenance expenses for the Water System are maintained at current

budget percentages into the future;

4. Inter-fund transfers and Customer Service costs are maintained at current

percentages;

5. Water Improvement Trust Fund (WITF) fee and grant fund revenues were

considered within the rate analysis, but amounts of funding from these sources

carry assumptions that could affect long-term revenue needs. If these funds are

not acquired or interest rates exceed projections, then financing costs will be

greater than projected;

6. A 2.5% gross inflationary factor is included in expenditure projections for

Operation & Maintenance costs;

7. A variety of financing options were reviewed for the City’s “large” capital

improvements that were outlined in the City’s 2018 Water System Master Plan

assuming a Florida Department of Environmental Protection (FDEP) State

Revolving Fund (SRF) financing term of 10 and 20 years respectively for Design

and Construction activities;

8. The enclosed rate modifications anticipate funding the following ‘large’ capital

improvements slated for completion within the next five years:

• Priority #1A: Design Services for Reynolds Water System Improvements

= $170,000

• Priority #1B: Construction of Reynolds Water System Improvements

= $1,200,000

• Priority #2A: Design Services for Harbor Road GST No. 3, Bonaventure WTF

Improvements, and Magnolia Point Cul-de-sac Water Main Improvements

= $650,000

• Priority #2B: Construction of Harbor Road GST #3 = $1,000,000


• Priority #2C: Construction of Bonaventure WTF Improvements (Mag Pt 3rd

Feed) = $2,000,000

• Priority #2D: Construction of Magnolia Point Cul-de-sac Improvements

= $1,200,000

• Priority #3: Design & Construction of Reynolds WTF HS Pumps & Well

No. 2 Replacement = $2,500,000

9. The following capital improvements are anticipated outside of the current 5-year

funding period:

• Priority #4: Design & Construction of AC Pipeline Replacement = $6,620,000

• Priority #5: Design & Construction of Governor's Creek WM Replacement

= $360,000

Based on 2018 average water use, the average water utility bill per residential connection

is summarized as follows:

2018 AVERAGE MONTHLY WATER RESIDENTIAL BILL

Category In-City Out of City

3/4" Meter $17.61 $23.41

1" Meter $22.31 $33.64

1-1/2" Meter $24.70 N/A

Based on current rates and average water use of 5,000 gallons per month, the average

monthly bills for various utilities within the region is summarized as follows:

2018 REGIONAL UTILITY COMPARISON FOR AVERAGE MONTHLY WATER BILLA

Utility Estimated Water Monthly Bill

City of Green Cove Springs $17.33

CCUA $22.41

Town of Orange Park $28.09

JEA $25.40

St. Johns County $28.90

A: Estimated bills based on 5,000 gallons per month of use with 3/4" meter.


Based on the analysis summarized herein, the following considerations are important

components related to future rate modifications:

• Water user fees account for 85% (91% if WITF fee revenue is not considered)

of the City’s overall water and sewer revenue;

• For FY ’18, the total ‘Water Sales’ revenue was $1,346,000. The base rate

revenue is approximately 52% or half of the annual value. Of the base rate

revenue, the Residential and Irrigation connections account for approximately

66% and 18% of the annual base rate revenue streams, respectively. Combined,

the two customer pools make up over 84% of the base rate revenue.

• For 2018, the average residential water use for customers within the City was as

follows:

Average Water Use(gal/month)

Number ofConnections

Percentage ofTotal Connections

CumulativePercent Usage

< 2,000 748 26% 26%

2,001 - 4,000 848 30% 56%

4,001 - 6,000 526 18% 74%

6,001 - 10,000 381 13% 87%

10,001 - 12,000 79 3% 90%

12,001 - 14,000 51 2% 92%

> 14,000 234 8% 100%

Total 2867

Based on the current water consumption, over 74% of the City’s residential

connections utilize less than 6,000 gallons per month and approximately 90% use

less than 12,000 gallons per month.


Pending final grant and WITF fee revenues, the City will need to consider mechanisms to

increase revenues to address inflationary cost increases to system operations,

rehabilitation needs, maintenance needs, and system expansion expenditures as follows:

Water System Expenditure Projections(Values in $1,000,000)

Item FY ‘18 FY ‘19A FY ‘20 FY ‘21 FY ‘22 FY ‘23 FY ‘24 FY ‘25 FY ‘26 FY ‘27

TotalExpenditure

$1.39 $1.63 $1.42 $1.45 $1.55 $1.68 $1.75 $1.84 $1.92 $2.05

% Change 17.7% <13.2%> 2.2% 7.0% 8.1% 4.5% 4.9% 4.5% 6.6%

A: The FY ‘19 17.7% increase is mainly attributed to the final payoff of the existing debt service ($342,000).

The following items were considered during the rate modification review:

• Connection growth was increased at a rate of 2.0% per year in FY ‘19 and FY

‘20, then decreased to 0.5% per year beginning in FY ‘21. As a result,

Residential Connections had an increase of approximately 15 units per year while

Commercial Connections increased at approximately 2 units per year. In

comparison, the Water System Master Plan projected growth at rates varying

between 1.0 to 2.2% per year.

• Irrigation meter connection counts were held constant at current values besides

an outside-city irrigation customer loss of approximately 60 customers beginning

in FY ‘22. These irrigation customers, located in the Edgewater Landing

development, will be converted from the potable water irrigation service to

reclaimed water irrigation service following the completion of the Harbor Road

Wastewater Treatment Facility Phase-1 Expansion project.

• User and base rates were increased 2% per year from FY’20 through FY’21. In

FY’22 the user and base rates was increased by 3.5%, followed by a 4.0%

increase in FY ‘23, and a 5.0 % increase per year from FY ‘24 through FY ‘25 to

address financing costs for the ‘financed’ capital improvements currently

contemplated within the City’s Capital Improvement Plan and aggregated per

‘Priority’ as outlined within the Study. The 5.0% increase per fiscal year

addresses capital needs in the projected window of review, but also increase

revenues to support larger capital improvements anticipated beyond FY’28 that

are associated with the AC Water Main improvements.


• Other revenue sources were generally held between 2 to 2.5% year over year

increase.

• Water Improvement Trust Fund (WITF) or Capacity or ‘Impact’ fee revenue and

fees associated with developer agreements were not considered. Proposed

connection growth did include consideration of WITF fee revenue into that

account, but those dollar amounts were not applied to any capital improvement

projects.

• The Depreciation Reserve account increased from an existing $240,000 to a

projected $605,000 in FY ‘28 in preparation of the larger capital needs associated

with the AC water main replacement program.

Irrigation rates were considered with the analysis with the following findings:

• The total City irrigation customer count consisted of a monthly average total of

598 customers in 2011 compared to a monthly average total of 809 customers

in 2018, resulting in a 35% aggregate increase or 5.0% growth per year.

• In 2011, approximately 40% of irrigation connections utilized more than 14,000

gallons per month while 26% of irrigation customers utilized more than 14,000

gallons per month in 2018 (14% decrease).

• In 2011, approximately 30% of irrigation connections utilized less than 2,000

gallons per month while 41% of irrigation customers utilized less than 2,000

gallons per month in 2018 (11% increase).

• Data demonstrate more conservative water irrigation usage in 2018 as compared

to 2011, which could be related to the modified irrigation rate structures in 2010

and 2016 as well as prevailing weather patterns.

• As the City considers appropriate rates for irrigation service, the usage charge

for those volumes above 14,000 to 20,000 gallons per month should be reviewed.

• Average irrigation demand within the Magnolia Point development between

September 2012 and August 2014 was approximately 12,000 gallons per month.

Agronomic calculations using an average of 3/4" or supplemental irrigation water

per week would indicate demands could exceed 20,000 gallons per month


pending actual lot size and irrigable area.

• Newer construction is generally limiting irrigable area by reducing lot sizes and

increasing hardscapes and housing footprints. These two items, along with water

conservation guidance, are likely a cause for the lower tiered growth for irrigation

usage of less than 4,000 gallons per month.

• From a policy perspective, the City will need to consider how larger volume

irrigation rates should be shaped to encourage water conservation while also

providing a reasonable rate for older neighborhoods that were developed with

larger lot sizes. Options could include separate rate structures for areas of the

City but must also consider management and billing activities associated with

various rate schedules.


TABLE OF CONTENTS

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ES 1-ES 7

I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

A. Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

B. Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

II. UTILITY SYSTEM OPERATIONS OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . 3

III. EXISTING WATER SYSTEM FINANCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

A. Existing Financial Review: Water Revenues . . . . . . . . . . . . . . . . . . . . . . . . 5

1. Water Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

B. Existing Financial Review: Water Expenditures . . . . . . . . . . . . . . . . . . . . . 13

1. Water O&M Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2. Remaining Water System Expenditures . . . . . . . . . . . . . . . . . . . . . . . . 19

a. Existing Capital Improvement Debt Service . . . . . . . . . . . . . . . . . 20

b. Water System - Customer Service (Billing) . . . . . . . . . . . . . . . . . . 20

c. Existing Inter-Fund Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

d. Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

e. Financed Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

C. Existing Financial Review: Water Revenue vs. Expenditures. . . . . . . . . . . 23

IV. WATER SYSTEM FINANCE PROJECTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . 26

V. WATER SYSTEM REVENUE REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . 35

A. Existing Rate Structure Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

B. Water System Revenue & Expenditure Requirements . . . . . . . . . . . . . . . . 43

TABLES

II-1 Water System Enterprise Fund Revenue & Expenditure Categories . . . . . . . . . 4

II-2 Wastewater Enterprise Fund Revenue & Expenditure Categories . . . . . . . . . . . 4

III-1 Historic Water System Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

III-2 Historic Water System Revenue Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

III-3 Existing Residential & Commercial Water Rate Schedule . . . . . . . . . . . . . . . . 10

III-4 Existing Residential Water Connections From January 2014

to August 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

III-5 Existing Commercial Water Connections From January 2014

to August 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Water System Rate AnalysisCity of Green Cove Springs, Florida February 2019Mittauer & Associates, Inc. Project No. 8905-48-1 Page i

III-6 Historic Annual Water System Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . 13

III-7 Historic Annual Water System Expenditures Breakdown . . . . . . . . . . . . . . . . . 14

III-8 Annual O&M Budget for Water System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

III-9 Non-Financed Capital Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

III-10 Financed Capital Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

III-11 4-Year Water System Revenue & Expenditures Breakdown . . . . . . . . . . . . . . 23

III-12 FY ‘12 Through FY ‘15 Water System Net Revenue Trend . . . . . . . . . . . . . . . 25

IV-1 Financed Capital Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

IV-2 Water System Capital Improvement Schedule . . . . . . . . . . . . . . . . . . . . . . . . . 31

IV-2 Modified Capital Improvement Plan

V-1 Historic Water Demands Per Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

V-2 August 2018 Water Customer Counts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

V-3 Water System Historic & Projected Fixed Costs . . . . . . . . . . . . . . . . . . . . . . . . 39

V-4 Water System Historic Irrigation Consumption . . . . . . . . . . . . . . . . . . . . . . . . . 41

V-5 Water System Estimated Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

V-6 Water System Estimated Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

V-7 Water System Estimated Revenue vs. Expenditure Projections. . . . . . . . . . . . 48

FIGURES

III-1 Water System Revenue Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

III-2 Water System Revenue Component Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

III-3 Water System Expenditure Trends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

III-4 Water System O&M Expenditure Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

III-5 Water System Revenue vs. Expenditure Trends . . . . . . . . . . . . . . . . . . . . . . . 24

ATTACHMENT

A Water System Rate Projection Model

Water System Rate AnalysisCity of Green Cove Springs, Florida February 2019Mittauer & Associates, Inc. Project No. 8905-48-1 Page ii

I. INTRODUCTION

A. PURPOSE

The City of Green Cove Springs (“City”) owns and operates a water, wastewater

(“sewer”), and reclaimed water (“reuse”) system. Excluding the reclaimed water

and sewer systems, the water system provides necessary services to the citizens

of the City ensuring they have drinkable, potable water that meets or exceeds the

Florida of Department of Environmental Protection (FDEP) requirements as well

as provides sufficient fire protection through the pumping and piping distribution

system.

For purposes of this analysis, the water utility system is defined as follows:

• The “Water System” is broadly comprised of: Two (2) water treatment plants

(WTF) (Harbor Road WTF and Reynolds WTF), four ground storage tanks,

three elevated storage tanks, high service pumps, Supervisory Control and

Data Acquisition (SCADA) system (computers, control components, real-time

records, remote operation capabilities, telemetry systems, etc.), and

distribution system (household services, meters, piping, valves, fire hydrants,

etc.).

At this time, the City operates their Water, Wastewater, and Reclaimed Water

Systems as separate enterprise funds. As an enterprise fund, the City operates

and maintains these systems and charges service and user fees to ensure the

systems are functional as well as meet the required rules and laws for operation.

A previous rate analysis study was completed by the City in August 2016. This

analysis provided a recommended water, sewer, and reclaimed water rate

structure charged to customers based on growth and capital needs defined within

the 2015 Wastewater System Master Plan and 2016 Reclaimed Water System

Master Plan. In July 2018 the City completed a Water System Master Plan, which

reviewed growth expectations and the City’s future capital needs pertaining to the

City’s potable water system. As a result, the City determined an updated review

of their water rates was required to determine if and when future rate

modifications would be required.

Water System Rate AnalysisCity of Green Cove Springs, Florida February 2019Mittauer & Associates, Inc. Project No. 8905-48-1 Page 1

B. SCOPE

Mittauer & Associates, Inc. (M&A) was authorized to complete an updated

analysis of the City’s current water rate structure and provide input for the City’s

use in determining how the enterprise fund may be modified to ensure revenues

are sufficient and equitable to address future capital investment, ongoing

maintenance, inflationary costs, and ongoing operation of the systems.

The analysis detailed further herein is provided based on the recommendations

contained within the American Water Works Association (AWWA) Manual M1

(Principles of Water Rates, Fees, and Charges), Manual M54 (Developing Rates

for Small Systems), and Water Basics for Decision Makers.


II. UTILITY SYSTEM OPERATIONS OVERVIEW

As defined within the AWWA Manual M1, a “cash-needs” utility rate system is the

basis for review of the City’s existing water rate structure and is the typical structure

for government-operated utility systems. The overall revenue requirements for the

utility as a whole, in effect the enterprise fund for the City, are defined as follows:

Total Revenue = Total Expenditures

where,

Total Expenditures = Operation & Maintenance (O&M) Costs + Debt Service

Related to Capital Improvements + Reserve + Non-financed

Capital Improvements + Inter-fund Transfers

For purposes of defining the revenue side of the equation, the Total Revenue for the

City’s Water System is calculated as follows:

Total Revenue = Water Sales [User Fees (Base Charge & Use)] + Water Taps

+ Water Department Services + WITF Fees (Water

Improvement Trust) + Fees related to Developer’s

Agreement + Interest (Florida State Board of Administration

(“FSBA”), Water Improvement Trust Fund (“WITF”), etc.) +

Fire Protection Fees + Sale of Surplus + Bad Debts

Collected + Extension Reimbursement + Consultant Fees

Reimbursement + Late Fees + Miscellaneous Income

Grant funding is also a component of total revenue and is a revenue source that has

benefitted the City over the years. Grant revenue is never a guarantee and as the

City grows those dollars will be more difficult to obtain. However, the City should

continue to explore avenues to obtain grant dollars and incorporate any grant revenue

into a yearly rate review as discussed further herein.

The total revenue and expenditures defined above are related to continuing

operations whereas revenue related to WITF and capital-in-aid-of-construction (CIAC)

fees are not part of this analysis.


In essence, the City attempts to operate the water enterprise to balance the items

listed above. The revenues should equal, or exceed, the expenditures on a year-to-

year basis. Table II-1 and Table II-2 generally defines the various categories the City

utilizes to track revenue and expenditures related to each of their enterprise funds.

TABLE II-1

WATER SYSTEM ENTERPRISE FUND REVENUE & EXPENDITURE CATEGORIES

Revenue Expenditures

• Water Sales [User Fees (Base Charge &Use)]

• Water Taps

• Water Department Services

• Water Improvement Trust (WITF Fees)

• Fees related to Developer’s Agreement

• Interest (FSBA, WITF, etc.)

• Extension Reimbursement

• Consultant Fees Reimbursement

• Sale of Surplus

• Fire Protection Fees

• Bad Debts Collected

• Misc Income

• Late Fees

• CIAC Fees

• Grant Revenue

• Operation & Maintenance (O&M) Costs

• Debt Service Related to CapitalImprovements

• Reserve

• Non-financed Capital Improvements

• Inter-fund Transfers

• Customer Service Fees

Within the above categories, the largest revenue stream is obtained through Water

Use fees while the largest expenditure is related to operation and maintenance of the

various systems. A more specific analysis of the various items is reviewed further

herein.


III. EXISTING WATER SYSTEM FINANCES

In order to further define the Water System revenue and expenditure requirements for

future years, a baseline study was completed of the City’s more recent historic revenue

and expenditure streams. Within Section III.A., the City’s historic revenues and costs for

the various components shown in Table II-1 will be defined. Section III.B. will review

various items that require consideration related to any rate modifications, and

Section III.C. will summarize the existing system review. Sections IV and V will review

future revenue requirements based on estimated expenditure projections.

A. EXISTING FINANCIAL REVIEW: WATER REVENUES

As shown in Table II-1, the Water System revenues are comprised of the

following items:

(1) Water Sales [User Fees (Base Charge & Use)]

(2) Water Taps

(3) Water Department Services

(4) Water Improvement Trust (WITF Fees)

(5) Fees related to Developer’s Agreement

(6) Interest (FSBA, WITF, etc.)

(7) Extension Reimbursement

(8) Consultant Fees Reimbursement

(9) Sale of Surplus

(10) Fire Protection Fees

(11) Bad Debts Collected

(12) Miscellaneous Income

(13) Late Fees

The historic revenue of each category is provided within Table III-1.


TABLE III-1

HISTORIC WATER SYSTEM REVENUE

Item FY ‘12-‘13 FY ‘13-‘14 FY ‘14-‘15 FY ‘15-‘16 FY ‘16-‘17 FY ‘17-‘18

Water Sales $1,163,000 $1,190,000 $1,183,000 $1,276,000 $1,428,400 $1,345,600

Water Taps $19,750 $20,500 $37,600 $48,750 $58,350 $82,400

Water Dept.Services

$6,300 $570 $3,900 $660 $700 $4,500

DeveloperAgreement Fees

$16,700 $10,300 $5,500 $0 $11,800 $0

Interest-FSBA $75 $200 $1,600 $3,250 $6,900 $10,700

Interest-Misc. $1,700 $1,000 $0 $0 $0 $0

Extension

Reimbursement$3,075 $500 $800 $1,550 $700 $1,650

Consultant

Reimbursement$0 $0 $0 $0 $0 $400

Sale of Surplus $0 $0 $0 $0 $39,500 $1,800

Fire ProtectionFees

$25,600 $26,600 $18,500 $15,600 $15,400 $19,600

Late Fees $23,500 $13,000 $11,200 $12,000 $10,900 $10,900

Bad Debts

Collected$0 $0 $0 $0 $150 $180

WITF (Impact orCapacity Fees)A $25,900 $30,900 $104,600 $282,000 $60,900 $207,600

Misc. RevenueB $3,100 $5,000 $4,400 $3,500 $27,000 $560

TOTAL $1,288,700 $1,298,570 $1,371,100 $1,643,310 $1,660,700 $1,685,890

TOTAL lessWITF Fees

$1,262,800 $1,267,670 $1,266,500 $1,361,310 $1,599,800 $1,478,290

A: WITF revenue is slated for capital improvement costs only. The current Water Improvement Trust Fund balance is approximately$577,200.

B: FY ‘15 excludes $55,300 from Retained Earnings.

As shown in Table III-1, the revenue numbers from Fiscal Year 20012/2013 to

2017/2018 trend upward. The largest source of revenue for the City is derived

from Water Sales. Between FY ‘12 and FY ‘18 this component of the revenue

streams has averaged approximately $1,264,000 or 85% of the City’s Total

Water Revenue. Overall Water Sales from Fiscal Year ‘06 through ‘18 are shown

in Figure III-1, while the remaining revenue streams are illustrated within

Figure III-2.


$600,000

$700,000

$800,000

$900,000

$1,000,000

$1,100,000

$1,200,000

$1,300,000

$1,400,000

$1,500,000

City of Green Cove SpringsM&A Project 8905-48-1Water System Rate Analysis UpdateFigure III-1 - Water System Revenue Trends

Water Sales

Gro

ssRe

venu

e($

)

Fiscal Year Ending

Rate Modification to Tiered Rate System

Second Rate Modification

$-

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

City of Green Cove SpringsM&A Project 8905-48-1Water System Rate Analysis UpdateFigure III-2 - Water System Revenue Component Trends

Water Taps

Water Dept Services

Interest - FSBA + Misc + WITF

Fire Protection Fees

Late Fees

WITF

Other Misc Revenue

Reve

nue

($)

Fiscal Year Ending

Figure III-1 illustrates the economic downturn in 2008 and 2009. In addition, the

graphic illustrates the revenue increases that resulted from the rate modifications

that were put into place in 2010 and 2016. Following the rate modifications, the

revenue reduced as customers became accustomed to the tiered rate system

and adjusted their consumption. As a result, revenue from 2012 to 2015 has

been relatively flat. The modified rate structure in 2016 shows another increase

in revenue that resulted from the rate increase of 3% or an average monthly

water and irrigation bill differential of $0.48 and $0.99, respectively. The City’s

customer base has also increased during this time period as reviewed further

herein, and is a contributing factor to the revenue increases.

Figure III-2 illustrates similar trends. The WITF revenue and water tap revenue

dropped from 2008 to 2013 and began to come back up with increases in 2014

and 2017 as a result of growth in Magnolia Point and Edgewater Landing. The

other revenue streams are more consistent.

As a percentage of the total budget, Table III-2 displays each category’s portion

of the City’s total Water System Revenue based on the averaged annual revenue

for the past four (4) years (FY ‘15 to ‘18).

TABLE III-2

HISTORIC WATER SYSTEM REVENUE SUMMARY

Item

Average Revenue(FY ‘15-‘18) Percent Total (%)

Water Sales $1,308,300 81.9%

Water Taps $56,800 3.6%

Water Department Services $2,450 0.2%

Developer Agreement Fees $4,300 0.3%

Interest-FSBA $5,600 0.35%

Interest-Misc. $0 0.00%

Extension Reimbursement $1,200 0.1%

Sale of Surplus $10,300 0.6%

Fire Protection Fees $24,800 1.6%

Late Fees $11,300 0.7%

WITF Fees $163,800 10.3%

Misc. Revenue $8,900 0.5%

TOTAL $1,597,750 100.0%


1. Water Sales: As noted within Table III-2, the revenue derived from water

sales represents 82% of the Water System’s Total Revenue. If WITF

revenue is excluded, the percentage increases to 91%. This subsection will

review this component in more detail. The existing residential and

commercial rate schedule for the Water System is summarized in Table III-3.

TABLE III-3

EXISTING RESIDENTIAL AND COMMERCIAL WATER RATE SCHEDULE

Category(Meter Size) 3/4" 1" 1-1/2" 2" 3" 4" 6" 8" 10"

MonthlyCustomer

BaseChargeA

$11.59 $17.21 $24.50 $33.91 $46.37 $185.47 $341.99 $486.90 $637.61

A: Monthly Customer Base Charge does not include any usage.

RESIDENTIAL POTABLE

Block Size(gal)

0-3,000 3,001-10,000 10,001-15,000 15,001-20,000 20,001 and over

Rate($/1,000 gal)

$0.60 $1.97 $2.03 $2.08 $2.15

RESIDENTIAL IRRIGATION

Block Size(gal)

0-10,000 10,001-15,000 15,001-20,000 20,001 and over

Rate($/1,000 gal)

$2.03 $2.08 $2.67 $3.48

COMMERCIAL POTABLE

Block Size(gal)

0-10,000 10,001-15,00015,001-20,000

20,001 and over

Rate($/1,000 gal)

$1.97 $2.03 $2.08 $2.15

COMMERCIAL IRRIGATION

Block Size(gal)

0-10,000 10,001-15,000 15,001-20,000 20,001 and over

Rate($/1,000 gal)

$2.03 $2.08 $2.67 $3.48


As discussed further herein, a review of the City’s water use and associated

revenue was prepared. As part of that effort, a review of the various

connections was completed. A tabulation of the various residential

connections beginning in January 2014 and ending in August 2018 is

provided within Table III-4.

TABLE III-4

EXISTING RESIDENTIAL WATER CONNECTIONS FROM JANUARY 2014 TO AUGUST 2018

Meter

Size

January 2014 August 2018

Potable Irrigation

Total

Potable Irrigation

Total

Inside

City

Outside

City

Inside

City

Outside

City

Inside

City

Outside

City

Inside

City

Outside

City

3/4" 2,308 258 508 25 3,099 2,606 313 568 73 3,560

1" 252 4 30 1 287 253 4 30 1 288

1-½" 2 0 0 0 2 2 0 0 0 2

2" 0 0 2 0 2 0 0 0 0 0

3" 0 0 0 0 0 0 0 0 0 0

4" 0 0 0 0 0 0 0 0 0 0

6" 0 0 0 0 0 0 0 0 0 0

8" 0 0 0 0 0 0 0 0 0 0

10" 0 0 0 0 0 0 0 0 0 0

TOTAL 2,562 262 540 26 3,390 2,861 317 598 74 3,850

On a percentage basis, the overall connection growth has been

approximately 13.6% over the denoted five year period or 2.72% per year.

Residential irrigation growth has been of a greater magnitude with a

percentage growth of 18.7% over the five year period or 3.74% per year.

A tabulation of the various commercial connections beginning in January

2014 and ending in August 2018 is provided within Table III-5.


TABLE III-5

EXISTING COMMERCIAL WATER CONNECTIONS FROM JANUARY 2014 TO AUGUST 2018

Meter

Size

January 2014 August 2018

Potable Irrigation

Total

Potable Irrigation

TotalInside

City

Outside

City

Inside

City

Outside

City

Inside

City

Outside

City

Inside

City

Outside

City

3/4" 217 38 58 7 320 233 42 59 9 343

1" 34 21 19 5 79 31 22 23 6 82

1-½" 31 7 5 0 43 38 7 9 0 54

2" 48 16 24 2 90 47 17 26 3 93

3" 7 1 2 0 10 8 2 2 0 12

4" 3 2 0 0 5 3 3 0 0 6

6" 1 0 0 0 1 1 0 0 0 1

8" 0 0 0 0 0 0 0 0 0 0

10" 0 0 0 0 0 0 0 0 0 0

TOTAL 341 85 108 14 548 361 93 119 18 591

On a percentage basis, the overall connection growth has been

approximately 7.9% over the denoted five year period or 1.6% per year.

Commercial irrigation growth has been of a greater magnitude with a

percentage growth of 12.3% over the five year period or 2.45% per year.

The City’s tiered rate structure has been in effect for approximately 9 years.

Utilizing the above information, a spreadsheet model was created (see

Attachment A) to prepare a baseline for utilization in future rate analysis

simulations. Through assistance with the Public Works & Finance

Department, water use for the various connections was provided and

historically analyzed.


B. EXISTING FINANCIAL REVIEW: WATER EXPENDITURES

As shown in Table II-1, the Water System expenditures are comprised of the

following items:

(1) Operation & Maintenance (O&M) Costs

(2) Debt Service Related to Capital Improvements

(3) Reserve

(4) Non-financed Capital Improvements

(5) Inter-fund Transfers

The historic expenditure of each category is provided within Table III-6.

TABLE III-6

HISTORIC ANNUAL WATER SYSTEM EXPENDITURES

Item FY ‘12-‘13 FY ‘13-‘14 FY ‘14-‘15C FY ‘15-‘16 FY ‘16-‘17 FY ‘17-‘18

O&M Costs $664,300 $681,400 $712,800 $752,900 $848,700 $826,800

Paying Agent $0 $0 $0 $0 $0 $0

Capital Improvement DebtService (Interest)

$44,000 $39,000 $33,900 $28,500 $22,900 $17,100

Reserve $1,500 $1,500 $0 $0 $0 $0

Bad Debt Expense $10,600 $5,500 $7,700 $7,800 $2,600 $0

Billing Service $84,400 $81,000 $102,400 $87,000 $78,900 $91,400

TransfersA $136,100 $131,400 $169,200 $197,000 $205,100 $177,000

Non-Financed Capital

Improvements

$120,693 $135,206 $120,736 $97,261 $165,138 $120,380D

Capital Improvement Debt

Service (Principal Payment)$128,463 $133,443 $138,600 $144,000 $149,600 $155,400

Miscellaneous $0 $0 $0 $0 $0 $0

TOTAL $1,190,056 $1,208,449 $1,285,336 $1,314,461 $1,472,938 $1,388,080

DepreciationB $488,700 $480,000 $473,700 $451,900 $456,000 $465,200

A: As a percentage of total revenue, the transfers have totaled: 10.6% (FY’13); 10.1% (FY’14), 11.9% (FY ‘15); 12.0% (FY ‘16); 12.4%(FY ‘17); and 10.5% (FY ‘18).

B: The City has begun to track Depreciation Expense, but this value is just an accounting line item and not a cash expense. C: FY ‘15 excludes transfer of $55,300 to Retained Earnings. The large increase to Billing Service was the result of a vehicle purchase

that was split between the enterprise funds. D: FY’18 includes $722,600 for Non-financed Capital Improvements for various water line and treatment installations/replacement

projects, including the CR 209 WM extension from US 17 to Edgewater Landing and the CCUA interconnect for Magnolia Point.The listed FY ‘18 value of $120,380 is utilized as a direct expense from the City’s Revenue and Depreciation Reserves.


The trends are illustrated in Figure III-3. As a percentage of the total budget,

Table III-7 displays each category’s portion of the City’s total Water System

Expenditure based on the average annual expenses for the past six (6) years.

The relatively large non-financed capital needs for FY’18 were funded as follows:

• $61,448 transfer from the City’s retained earnings;

• $96,207 from depreciation reserves;

• $24,173 from City revenue;

• $26,354 from reimbursable;

• $190,000 from the City’s Trust Fund; and

• $324,419 from Private Developers.

The amount funded from FY’18 revenue and depreciation reserves was utilized

for this report ($120,380).

TABLE III-7

HISTORIC ANNUAL WATER SYSTEM EXPENDITURES BREAKDOWN

ItemAverage Expenditure

(FY ‘13-‘18)Percent Total (%)

(FY ‘13-‘18)

O&M Costs $747,800 57.1%

Paying Agent $0 0.0%


Service (interest)$30,900 2.4%

Reserve $500 0.0%

Bad Debt Expense $5,700 0.4%

Billing Service $87,500 6.7%

TransfersA $169,300 12.9%

Capital Expenditures $126,600 9.7%


Service (principal)$141,600 10.8%

Miscellaneous $0 0.0%

TOTAL $1,309,900 100.0%

Depreciation $469,300 35.8%B

A: Percentages shown as a function of total expenditures not revenue. A review of revenue projections is discussedfurther in Section III.B.

B: Percentage of Total Average Expenditures. As noted previously, this is not a cash expense.


$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

9/30/06 9/30/07 9/29/08 9/29/09 9/30/10 9/30/11 9/29/12 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19

City of Green Cove SpringsM&A Project 8905-48-1Water System Rate Analysis UpdateFigure III-3 - Water System Expenditure Trends

O&M CostsCapital Improvement Debt Service (Principal & Interest)ReserveNon-financed Capital ImprovementsTOTAL WATER SYS EXPEND.

Expe

nditu

re (

$)

Fiscal Year Ending

The percentage increase from FY ‘13 to FY ‘18 is summarized for some specific

line items as follows:

• O&M Costs: 24.5% increase from FY ‘13 to FY ‘18 (4.1% increase

per year on average)

• Billing Service: 8.3% increase from FY ‘13 to FY ‘18 (1.4% increase per

year on average)

• Transfers: 30.1% increase from FY ‘13 to FY ‘18 (5.0% increase

per year on average)

1. Water O&M Expenditures: As shown within Table III-7, the costs

associated with the O&M of the Water System reflect over 55% of the annual

expenditures within the budget when depreciation expenses are not

considered. Therefore, specific costs associated with this line item will be

reviewed in further detail. A breakdown of the various line items and costs

for the past six (6) fiscal years is summarized in Table III-8.

TABLE III-8

ANNUAL O&M BUDGET FOR WATER SYSTEM


Labor, Taxes & Fringes $380,720 $406,500 $434,900 $462,500 $475,300 $482,500

Utilities - Electric $59,900 $70,000 $66,100 $67,400 $78,900 $67,000

Professional Fees $13,400 $3,700 $5,800 $11,900 $24,700 $10,700

Office & Lab Expenses/

Supplies$22,800 $11,300 $12,200 $12,100 $12,600 $30,100

Vehicle Fuel & Maintenance $14,200 $11,300 $9,100 $7,400 $6,500 $11,700

Equipment Maintenance $1,800 $2,400 $1,200 $3,700 $1,100 $1,020

Safety Equip./Uniforms $1,100 $800 $1,800 $1,600 $1,000 $1,600

Contract Services & Testing $33,400 $26,200 $16,800 $15,000 $24,500 $47,800

EST Maintenance $30,600 $31,100 $32,800 $34,000 $34,600 $36,400

Travel/Books/Prof. Develop. $1,500 $1,600 $1,200 $1,000 $9,000 $5,100

Auditing ?? $6,000 $5,500 $5,500 $5,500 $5,500


TABLE III-8 (cont.)

ANNUAL O&M BUDGET FOR WATER SYSTEM


Communication, Freight &

Postage$6,200 $2,500 $2,500 $4,300 $4,600 $3,700

Insurance $13,000 $13,000 $19,000 $26,100 $17,300 $16,400

Line/Hydrant Maintenance $38,300 $51,200 $58,300 $57,400 $101,200 $43,900

Plant Maintenance $14,200 $18,500 $15,600 $12,400 $23,300 $21,300

Chemicals $28,100 $24,300 $28,100 $27,700 $27,200 $29,000

Other Expenses $120 $1,100 $1,000 $2,900 $1,600 $13,100

TOTAL $659,300 $681,500 $711,900 $752,900 $848,900 $826,800

Depreciation $488,700 $480,000 $473,700 $451,905 $456,000 $465,200

Figure III-4 illustrates the operation & maintenance expenditures per year.

On an annual basis, the City updates their 5-year capital improvement plan

to budget expenditures associated with ongoing maintenance (rehabilitation

or replacement) items and/or expansion of the City’s utility system. The

City’s current five-year capital improvement budget for non-financed capital

improvements is summarized in Table III-9. The funding for these

improvements are currently designated through a combination of sources

including depreciation reserve and general revenue. The totals per fiscal

year are summarized at the bottom of the table.


$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

9/30/06 9/30/07 9/29/08 9/29/09 9/30/10 9/30/11 9/29/12 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19

City of Green Cove SpringsM&A Project 8905-48-1Water System Rate Analysis UpdateFigure III-4 - Water System O&M Expenditure Trends

Labor, Taxes & Fringes

Utilities - Electric

Professional Fees

Insurance

Repairs & Maintenance

Expe

nditu

re ($

)

Fiscal Year Ending

TABLE III-9

NON-FINANCED CAPITAL IMPROVEMENTS

Item FY ‘18-’19 FY ‘19-’20 FY ‘20-’21 FY ‘21-’22 FY ‘22-’23

CUP Planning

(Timing Driven by Reynolds)$50,000

Loop Energy Cove Court $10,000

Replace Valves $10,000 $10,000 $10,000 $10,000 $10,000

Meter Replacement (333/yr AMR) $20,000 $20,000 $20,000 $20,000 $20,000

New Meters Install $20,000 $20,000 $20,000 $20,000 $20,000

Replace Truck #803-2008

F250 Crew Cab Utility Body$40,000

Replace POLY Svcs. With PVC

Pipe in Cove$70,000

Black Creek Village to Edgewater

Landing Line Ext. $400,000

Line Extensions $10,000 $10,000 $10,000 $10,000 $10,000

Replace Truck #804-2009

F150 Pickup$30,000

TOTAL (Use) $140,000 $530,000 $60,000 $60,000 $110,000

Funding Source: Revenue $100,000 $30,000 $30,000 $30,000 $80,000

Funding Source: Reserves $0 $400,000 $0 $0 $0

Funding Source: Transfers $10,000 $0 $0 $0 $0

Funding Source: Reimbursable $30,000 $30,000 $30,000 $30,000 $30,000

Funding Source: Depreciation Res $0 $70,000 $0 $0 $0

TOTAL (Source) $140,000 $530,000 $60,000 $60,000 $110,000

Table III-8 and Figure III-4 also illustrate the City’s historic expenditures for

maintenance categories. In FY ‘18 the total maintenance costs within the

O&M annual budget were approximately $77,920.

2. Remaining Water System Expenditures: In addition to the annual O&M

expenditures, as noted within Table III-8, the City has the following

expenditure categories which will be discussed in further detail:

• Capital Improvement Debt Service;

• Water System - Customer Service (Billing);


• Inter-Fund Transfers;

• Depreciation; and

• Financed Capital Improvements.

Each of the above will be defined further within the following subsections.

a. Existing Capital Improvement Debt Service: The City currently has

a loan agreement with Hancock Bank that was utilized to finance

improvements at the Harbor Road WTF Expansion. The debt service

has the following conditions:

• Principal: $1,650,0000

• Interest Rate: 3.84% (APR)

• Period: 12 Years

• Payment: $172,496 (annual payment; principal & interest)

• Pay-off Date: October 2020

The City indicated they intend to pay the remaining balance of this loan

($344,992) in FY’19. Future loan agreements are expected to finance

capital improvements discussed further herein.

b. Water System - Customer Service (Billing): These costs address the

outside billing service that issues the City’s monthly utility bills. As

shown in Table III-6, between FY ‘13 and FY ‘18, the annual costs

increased a total of 8.3% resulting in an annual average increase of

1.7% per year. In general, the line item’s expenditure typically represents

6.0% of the total Water System costs.

c. Existing Inter-Fund Transfers: As shown within Table III-6, the

average Inter-fund transfers have continued to remain around 11 to 15%

of the enterprise fund’s expenses less Depreciation expenses. The

transfer amounts are limited based on revenue streams.

d. Depreciation: In annual audits, accountants will include depreciation

expense as it relates to ‘lost value’ within the aging infrastructure. In

most cases, equipment, tanks, building, etc. will have a straight-line

depreciation on 10 to 30-year durations pending specific characteristics

and anticipated service life. In these documents, the ‘depreciation


expense’ is not a ‘cash’ expense but does represent a loss in booked

value.

For most utilities, the depreciation expense is not funded on a year-to-

year basis. Instead, the depreciation expense is ‘capitalized’ once an

improvement program is initiated which will include debt issuance to

replace, rehabilitate, or improve the existing assets.

Depreciation expense is also captured in the City’s annual audit. For the

City’s internal budgeting, the average amount has been $470,000 per

year.

e. Financed Improvements: The City’s current capital improvement

budget also includes considerations related to debt instruments that may

be required to fund future capital improvements. A summary of these

needs are provided in Table III-10.


TABLE III-10

FINANCED CAPITAL IMPROVEMENTS

Item FY ‘18-’19 FY ‘19-’20 FY ‘20-’21 FY ‘21-’22 FY ‘22-’23

Governor’s Creek: Water Main Replacement(Priority #5)

$360,000

Bonaventure WTFImprovements (Mag Pt 3rd Feedand EST Removal - Priority #2C)

$360,000 $1,850,000

Magnolia Point Cul-de-Sac

Water Main Upgrades

(Priority #2D)

$300,000 $300,000 $300,000 $165,000

Reynolds SR 16 Crossing WaterMain Replacements(Priority #1A & 1B)

$350,000

Reynolds Bulkhead Road to Red

Bay Marina Water Main

Extension (Priority #1B)

$175,000

Reynolds Water Distribution &

Fire Hydrant Improvement

(Priority #1B)

$312,000 $300,000

City-Wide AC Water Main

Upgrades (Priority #4)$2,000,000 $2,000,000 $2,000,000 $620,000

Reynolds WTF Well No. 2

Replacement (Priority #3)$240,000 $1,590,000

Harbor Road WTF GST No. 3

(Priority #2B)$140,000 $920,000

Reynolds High Service Pump

Improvements (Priority #3)$650,000

Reynolds WTF GST No. 3(Timing Driven by ReynoldsDevelopment)

$1,000,000

TOTAL $1,337,000 $6,620,000 $3,890,000 $2,300,000 $1,785,000

Financing costs and options related to these improvements are discussed in

Section IV. The funding method will modify the improvement schedule outlined

in Table III-10. The CIP will be amended in the coming FY ‘20 budget to mimic

the City’s desired funding paths and priority selection.


C. EXISTING FINANCIAL REVIEW: WATER REVENUE VS. EXPENDITURES

As shown in Table III-11, the Water System revenue and expenditures over the

past four (4) years are summarized.

TABLE III-11

4-YEAR WATER SYSTEM REVENUE & EXPENDITURES BREAKDOWN

Item

AverageRevenue

(FY ‘15-‘18) Item

AverageExpenditure(FY ‘15-‘18)

Water Sales $1,308,300 O&M Costs $785,300

Water Taps $56,800Capital Improvement Debt

Service (interest)$25,600

Water Depart. Services $2,400 Reserve $0

Developer Agreement Fees $4,300 Bad Debt Expense $4,500

Interest-FSBA $5,600 Customer Service (Billing) $89,900

Interest-Misc. $0 Inter-Fund Transfers $187,100

Fire Protection Fees $17,300 Non-Financed Capital

Improv.

$127,600

Late Fees $11,300 Capital Improvement Debt

Service (principal)$146,900

Misc. Fees $8,900

TOTAL $1,414,900 TOTAL $1,366,900

WITF Fees $163,800

The various items reviewed within this section will provide a foundation to review

future expenditures related to needed capital improvements and the

accompanying revenue requirements. As noted from the total, the Water Utility

currently has an average net revenue of approximately $66,000 per year.

Figure III-5 illustrates the historic revenue versus expenditure trends.


$-

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

$1,800,000.00

9/30/06 9/30/07 9/29/08 9/29/09 9/30/10 9/30/11 9/29/12 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19

City of Green Cove SpringsM&A Project 8905-48-1Water System Rate Analysis UpdateFigure III-5 - Water System Revenue vs. Expenditure Trends

Water System Gross Revenue

Water System Gross Expenditure

Expe

nditu

re ($

)

Fiscal Year Ending

The net revenue for the Water System between FY ‘15 through FY’18 is

summarized in Table III-12.

TABLE III-12

FY’12 THROUGH FY’15 WATER SYSTEM NET REVENUE TREND

Item FY ‘14-‘15 FY ‘15-‘16 FY ‘16-‘17 FY ‘17-‘18

Total RevenueA $1,266,500 $1,361,300 $1,599,800 $1,478,300

Total Expenses $1,285,300 $1,314,500 $1,472,900 $1,388,100

NET REVENUE ($18,800) $46,800 $126,900 $90,200

A: Values are from Tables III-1 and III-6, but do not include WITF Revenue. WITF revenues for the noted fiscal years were:$104,600 (FY ‘15), $282,000 (FY ‘16), $60,900 (FY ‘17), and $207,600 (FY ‘18). A transfer of $55,250 was also excluded fromthe FY ‘15 overall revenue total.


IV. WATER SYSTEM FINANCE PROJECTIONS

Building from the City’s current Water System budget, consideration of future capital

improvements will be reviewed.

As noted within AWWA’s Manual M1 and M54, the horizon of capital improvements should

be contemplated in five-year increments. As will be discussed further herein, the

recommendations and slated improvements reviewed within this study should be reviewed

annually during the City’s regular budget proceedings and re-evaluated/updated annually

with five-year-projection horizons.

The City’s current 5-year capital improvement budget will be utilized as the basis for

review. Modifications to the budget projections are included herein based on discussions

with the City and how improvements are anticipated to be funded and constructed.

Therefore, the time lines within the City’s FY ‘19 Capital Improvement Plan (CIP) will be

adjusted and modified in future Capital Improvement Plans.

As noted within Section III, the City currently has debt service associated with the Harbor

Road WTF expansion, but the note will be paid off in 2019. Section III also presented the

anticipated near-term Water System projects referenced from the most recent 5-year

Capital Improvement Plan that was defined in the City’s 2018 Water System Master Plan.

The City intends to address deficiencies within their existing Reynolds wellfield, which

include improvements to other equipment within the Reynolds WTF, as well as additional

improvements at the Harbor Road WTF, and various city-wide distribution system

improvements. These projects will address growth demands as well as regulatory

requirements into 2040. As a result, the City is considering funding application(s) through

various low-interest/grant entities to finance the capital needed for the 5-year projects with

the long-term improvements in mind. As mentioned previously, the timing of those

improvements are contingent on funding, so the schedule for FY ‘19 CIP improvements are

modified herein to accommodate likely funding timelines. These are planning values with

associated time horizons, so actual rate needs will need to be monitored year-to-year as

the program is implemented and capital improvement schedule becomes more clear.

The capital costs for each of the improvements anticipated within the forthcoming five (5)

year window were summarized in Table III-10 and are presented again in Table IV-1.

These values are from the City’s Fiscal Year 19 Capital Improvement Plan (FY ‘19 CIP).


TABLE IV-1

2019 FINANCED CAPITAL IMPROVEMENT PLANA

Item FY ‘18-‘19 FY ‘19-’20 FY ‘20-’21 FY ‘21-‘22 FY ‘22-’23 TOTAL


$360,000 $360,000

Bonaventure WTFImprovements (Mag Pt 3rd

Feed and EST Removal)(Priority #2C)

$360,000 $1,850,000 $2,210,000


Water Main Upgrades

(Priority #2D)

$300,000 $300,000 $300,000 $165,000 $1,065,000

Reynolds SR 16 CrossingWater Main Replacements(Priority #1B)

$350,000 $350,000

Reynolds Bulkhead Road

to Red Bay Marina Water

Main Extension

(Priority #1B)

$175,000 $175,000

Reynolds Water

Distribution & Fire Hydrant

Improvement

(Priority #1B)

$312,000 $300,000 $612,000


Upgrades (Priority #4)$2,000,000 $2,000,000 $2,000,000 $620,000 $6,620,000


Replacement (Priority #3)$240,000 $1,590,000 $1,830,000

Harbor Road WTF GST

No. 3 (Priority #2B)$140,000 $920,000 $1,060,000

Reynolds High Service

Pump Improvements

(Priority #3)

$650,000 $650,000

Reynolds WTF GST No. 3(Timing Driven byReynolds Development)(TBD)

$1,000,000 $1,000,000

TOTAL $1,337,000 $6,620,000 $3,890,000 $2,300,000 $1,785,000 $15,932,000

A: Listed capital needs are modified from the City’s FY ‘19 CIP to provide a planning fee basis for loan capital needs and other non-construction costs.


The financed capital improvements are conceptual and firm numbers will not be known

until the projects are completely designed and bid for construction.

In order to provide an estimate of potential financing costs, the current interest rates for the

FDEP SRF Program will be utilized. The current rate and payback period is summarized

as follows:

• FDEP Drinking Water SRF Program 2.3% (10-year term for Design | 20-year term

for Construction);

The above rate is comparable to historic lows. If projects do not move forward within the

coming year or two, it is likely the rate will increase to more historic norms, which will have

impacts on the debt repayment needs. Interest increases are considered within the

enclosed analysis.

In addition, it is assumed a loan-reserve requirement will be part of the financing

arrangement. For our purposes, the reserve will require an annual payment equivalent to

10% of the overall annual payment. The reserve would meet its cap at the end of 10 years.

The FDEP Drinking Water SRF Program can also provide grant monies for projects. The

single maximum grant allowable is defined as $2,500,000. Review of recent awards

indicates maximum grant value awarded has ranged between $1,000,000 to $1,500,000.

For this analysis, project funding is anticipated to be awarded in phases with grant funding

assumed to contribute approximately 20% to 50% at each phase with a maximum

contribution of $1,500,000.

Additionally, the infrastructure needs associated with the Reynolds Water System

Improvements will be addressed through direct-bank financing, since the FDEP SRF

program would require additional time to work through the funding steps. Estimated terms

utilized within the rate model were a 10-year note with 4.0% interest rate.

The capital needs are ordered into the following projects based on priority (capital needs

are rounded out and modified from the CIP schedule for funding projection purposes ):

• Priority #1A: Design Services for the Reynolds Water System Improvements

= $170,000

• Priority #1B: Construction of Reynolds Water System Improvements

= $1,200,000


• Priority #2A: Design Services for Harbor Road GST No. 3, Bonaventure WTF

Improvements, and Magnolia Point Cul-de-Sac Water Main

Improvements = $650,000

• Priority #2B: Construction of Harbor Road GST No. 3 = $1,000,000

• Priority #2C: Construction of Bonaventure WTF Improvements = $2,000,000

• Priority #2D: Construction of Magnolia Point Cul-de-Sac Water Main

Improvements = $1,200,000

• Priority #3: Design and Construction of Reynolds WTF HS Pumps & Well No.

2 Replacement = $2,500,000 ($375k± Design and Permitting |

Construction Services Separate)

• Priority #4: Design and Construction of AC Pipeline Replacement =

$6,620,000 ($995k± Design and Permitting | Construction

Services Separate)

• Priority #5: Design and Construction of Governor's Creek WM Replacement

= $360,000 ($54k± Design and Permitting | Construction Services

Separate)

For purposes of this analysis, the Design and Permitting portion of each project are

assumed at a flat 15% of the construction cost estimates listed in the FY’19 CIP. Actual

costs may be greater pending needs per project as it is related to various non-construction

costs other than design & permitting such as loan-service fees, bond counsel, application

documents, surveying, subsurface utility engineering, etc. The project priorities are bundled

together to limit the number of debt instruments and to develop a reasonable project time

line and associated payment schedules. The bundled project priorities are presented with

assumptions as it relates to grant funding and interest rates as follows:

1. PHASE A (Priority #1)

• Conceptual Capital Amt. = $170,000 (Design & Permitting); $1,200,000

(Const.)

• Grant Estimate = $0

• Interest Rate Estimate = 4.00% / 10-year repayment term

• Bank Loan = $1,370,000 Total

• Payment = $169,000 /Yr (Design & Permitting) & (Const.)


2. PHASE B (Priority #2A and #2B)


(Const.)

• Grant Estimate = $130,000 (Design & Permitting); $500,000

(Const.)

• Interest Rate Estimate = 4.00%

• FDEP Loan = $520,000 (Design & Permitting); $500,000

(Const.)

• Payment = $65,000/Yr (Design & Permitting); $37,000/Yr

(Const.)

3. PHASE C (Priority #2C)

• Conceptual Capital Amt. = $2,000,000 (Const.)

• Grant Estimate = $1,000,000 (Const.)


• FDEP Loan = $1,000,000 (Const.)

• Payment = $74,000/Yr (Const.)

4. PHASE D (Priority #2D)

• Conceptual Capital Amt. = $1,200,000 (Const.)

• Grant Estimate = $600,000 (Const.)


• FDEP Loan = $600,000 (Const.)

• Payment = $45,000/Yr (Const.)

5. PHASE E (Priority #3)


(Const.)

• Grant Estimate = $75,000 (Design & Permitting); $1,100,000

(Const.)


• FDEP Loan = $300,000 (Design & Permitting); $1,025,000

(Const.)


(Const.)


6. PHASE F (Priority #4)


(Const.)

• Grant Estimate = $200,000 (Design & Permitting); $1,500,000

(Const.)


• FDEP Loan = $795,000 (Design & Permitting); $4,125,000

(Const.)


(Const.)

7. PHASE G (Priority #5)

• Conceptual Capital Amt. = $54,000 (Design & Permitting); $306,000

(Const.)

• Grant Estimate = $ 0 (Design & Permitting - Assumed funding via

revenue); $153,000 (Const.)


• FDEP Loan = $ 0 (Design & Permitting); $153,000 (Const.)

• Payment = $0/Yr (Design & Permitting); $13,000 /Yr (Const.)

Estimated loan calculations utilized the Uniform Series Present Worth Factor formula

incorporating the specified interest rates over a 10-year and 20-year repayment terms for

Design and Construction, respectively.

The anticipated project and payment schedules are presented in Table IV-2.

TABLE IV-2

WATER SYSTEM CAPITAL IMPROVEMENT SCHEDULE

PHASE A(Priority #1)

TASK Year Payment Start Year

Design FY ‘19/’20 -

Design Complete FY ’20 FY ’20 ($169,000/Yr)

Construction FY ’20/’21 FY ’20 (as above)


TABLE IV-2 (cont.)

WATER SYSTEM CAPITAL IMPROVEMENT SCHEDULE

PHASE B(Priority #2A and #2B)


Design RFI FY ‘19 (Aug) -

Design Complete/Construction RFI

FY ’20 (Aug) FY ’22 ($65,000/Yr)

Construction FY ’21/’22 FY ’23 ($37,000/Yr)

PHASE C(Priority #2C)


Construction RFI FY ‘22 (Aug) -

Construction FY ‘23/’24 FY ‘24 ($74,000/Yr)

PHASE D(Priority #2D)


Construction RFI FY ‘24 (Aug) -

Construction FY ’24/’25 FY’25 ($45,000/Yr)

PHASE E(Priority #3)


Design RFI FY ’25 (Aug) -

Design Complete FY ’26 (Aug) FY ’26 ($39,000/Yr)

Construction FY ’26/’27 FY’27 ($83,000/Yr)

PHASE F(Priority #4)


Design RFI FY ’27 (Aug) -

Design Complete FY ’29 (Aug) FY ’29 ($103,000/Yr)

Construction FY ’29 thru ’31 FY’30 ($331,000/Yr)

PHASE G(Priority #5)


Construction RFI FY ’31 (Aug) -

Construction FY ‘31/’32 FY ‘32 ($13,000/Yr)


The debt service schedule will be incorporated into the City’s proposed water rate structure

reviewed in Section V. Considerations related to WITF fees, and capital reductions

through depreciation reserves will also be discussed within this section of the report. Based

on the capital improvement schedule presented in Table IV-2, a modified 5-year capital

improvement plan is presented in Table IV-3.

TABLE IV-3

MODIFIED CAPITAL IMPROVEMENT PLAN



$0

Bonaventure WTFImprovements (Mag Pt 3rd

Feed and EST Removal)(Priority #2C)

$325,000 $800,000 $1,125,000


Water Main Upgrades

(Priority #2D)

$163,000 $163,000

Reynolds SR 16 CrossingWater Main Replacements(Priority #1B)

$57,000 $400,000 $457,000

Reynolds Bulkhead Road

to Red Bay Marina Water

Main Extension

(Priority #1B)

$57,000 $200,000 $257,000

Reynolds Water

Distribution & Fire Hydrant

Improvement

(Priority #1B)

$56,000 $600,000 $656,000


Upgrades (Priority #4)$0


Replacement (Priority #3)$0

Harbor Road WTF GST

No. 3 (Priority #2B)$162,000 $400,000 $600,000 $1,162,000

Reynolds High Service

Pump Improvements

(Priority #3)

$0


TABLE IV-3

MODIFIED CAPITAL IMPROVEMENT PLAN


Reynolds WTF GST No. 3(Timing Driven byReynolds Development)(TBD)

$0

TOTAL $170,000 $1,850,000 $400,000 $600,000 $800,000 $3,820,000

As noted in Section III, the City’s Water Fund currently includes the following line items

that should be considered as potential revenue sources for debt repayment:

• Water System (see Table III-6)

- Interfund Transfer: Both enterprise funds provide transfers to the general

fund. Since FY ‘13 the annual transfer for the Water

Fund has ranged between $131,400 to $205,100.

- Debt Service: In 2019, the City will pay off its current obligation, and

will not have annual financing costs of $172,500.

- Summary: As shown in Table III-12, the utility has a marginal net

revenue from year to year.


V. WATER SYSTEM REVENUE REQUIREMENTS

Building from the City’s current Water System budget along with the noted planned

expenditures within Section IV, a review of the various revenue streams will be completed

to determine any required adjustments.

As defined within Section II, the largest revenue streams are derived from the user fees

with other portions being more modest or linked to specific facility improvements. Prior to

reviewing the specific revenue projections, the user fee revenue will be considered.

Typically and as currently utilized within the City, user fees are comprised of the following

items:

User Fee = Base Charge + Use Charge

The Base Charge should include all fixed costs related to the utility’s financing, O&M, etc.

A summary of costs typically included within the Base Charge include:

• Meter Reading;

• Billing;

• Accounting;

• Collection Expenses;

• Maintenance; and

• Capital Improvement Financing Costs.

In contrast, the costs related to the volume of water produced or collected are typically

included within the Use Charge. Since 2013, the total annual water withdrawals per year

is summarized in Table V-1.

TABLE V-1

HISTORIC WATER DEMANDS PER YEAR

Calendar YearWater System Demands

[MGD]

2013 0.94

2014 0.99

2015 1.00

2016 1.13

2017 1.16

AVERAGE 1.04


As shown in Table V-1, utility service in an inherently fixed cost enterprise since water

demands do not drastically change year over year. However, the water demand had a

relatively large increase from 2015 to 2016 due to the incorporation of new developments

into the City’s water system.

The Water Utility Revenue categories will be reviewed further herein. For purposes of this

analysis, a projection into fiscal year 2028 is completed due to financing costs that are

projected between 2020 and 2028. However, the City should consider rate modifications

on yearly basis as they consider capital needs in a five-year to ten-year look ahead (i.e.,

capital improvement plan). As noted within Section IV, the City has a number of large

capital improvement needs which may or may not include WITF fee revenue or other

retained earning offsets. The enclosed analysis is a conservative approach to determine

the “worst-case” revenue requirements.

A. EXISTING RATE STRUCTURE CONSIDERATIONS

The City currently has the following water accounts/connections summarized in

Table V-2.

TABLE V-2

AUGUST 2018 WATER CUSTOMER COUNTS

Category

Residential Commercial Irrigation

InsideCity

OutsideCity Total

InsideCity

OutsideCity Total

InsideCity

OutsideCity Total

3/4" Meter 2,606 313 2,919 233 42 275 627 82 709

1" Meter 253 4 257 31 22 53 53 7 60

1-1/2" Meter 2 0 2 38 7 45 9 0 9

2" Meter 0 0 0 47 17 64 26 3 29

3" Meter 0 0 0 8 2 10 2 0 2

4" Meter 0 0 0 3 3 6 0 0 0

6" Meter 0 0 0 1 0 1 0 0 0

TOTAL 2,861 317 3,178 361 93 454 717 92 809


Based on these connections, the current annual revenue from the City’s base

rate is approximately:

Water

• Residential Base Rate Annual Revenue = $456,900

• Commercial Base Rate Annual Revenue = $114,800

• Irrigation Base Rate Annual Revenue = $126,300

Total = $698,000

For FY ’18 the total ‘Water Sales’ revenue was $1,345,600. The base rate

revenue is approximately 52% or half of the annual value. Of the base rate

revenue, the Residential and Irrigation connections account for approximately

66% and 18% of the annual base rate revenue streams, respectively. Combined,

the two customer counts make up over 84% of the base rate revenue.

A review of the total water use within 2018 through December was completed for

all of the residential connections within the City. The average monthly use review

resulted in the following findings:

ItemNumber of

Connections % of Total Cumulative %

Connections Using Less than 2,000 gal/month 748 26% 26%

Connections Using 2,001 to 4,000 gal/month 848 30% 56%





Connections greater than 14,001 gal/month 234 8% 100%

As shown from above, over 74% of the City’s residential connections utilize less

than 6,000 gallons per month and approximately 90% use less than 12,000

gallons per month. The City’s current usage charge for consumption in these

ranges is as follows:

• Use charge for less than 3,000 gal/month: $0.58/1,000 gal

• Use charge for 3,001 to 10,000 gal/month: $1.91/1,000 gal

• Use charge for 10,001 to 15,000 gal/month: $1.97/1,000 gal


Therefore, as rate modifications are considered, the current base rate and water

usage within the noted values should be considered since the majority of revenue

is derived from these customers/connections.

Using the existing rate schedule, the average water bill for customers using

3,000, 4,000, 6,000, and 10,000 gallons per month is summarized as follows:

• 3,000 gal/month = $13.50 (water)

• 4,000 gal/month = $15.60 (water)

• 6,000 gal/month = $19.13 (water)

• 10,000 gal/month = $26.66 (water)

Using the same water consumption data, approximately 87% of the City water

customers have a water bill that is $27 or less per month.

As noted elsewhere, the City’s current rate structure was modified in 2010 to a

tiered rate system with an ‘inverted’ cost structure. Thus, connections that utilized

larger amounts of water are required to pay larger fees associated with that use.

The structure promotes water conservation while providing reasonable rates for

low-volume consumption. The tiered rates are intended to be modified as needed

according to the required revenue of the City. As part of the base rate review of

the inverted rate structure, AWWA Manual M1 recommends a utility’s fixed rate

or base rate should include the following items:

• Meter Reading;

• Billing;

• Accounting;

• Collection Expenses;

• Maintenance; and

• Capital Improvement Financing Costs.

Applying these items to the City’s Water System, the following budget items are

considered fixed costs associated with the operation and maintenance:

• Operation & Maintenance Costs, including:

- Labor, Taxes, and Fringes;

- Repairs & Maintenance;

- Office and Laboratory Expenses/Supplies;


- Elevated Storage Tank Maintenance;

- Travel, Books, and Professional Development;

- Communication, Freight & Postage;

- Insurance;

- Auditing; and

• Capital Improvement Debt Service.

Table V-3 summarizes these fixed costs for each of the projected fiscal years.

TABLE V-3

WATER SYSTEM HISTORIC & PROJECTED FIXED COSTS

ItemAverage Expense

(FY ‘15-’17) FY ‘18 FY ‘23 FY ‘28

Labor, Taxes, &

Fringes$457,600 $482,500 $587,000 $714,200

Repairs & Maintenance $89,400 $65,200 $79,300 $96,500

Office & LabExpenses/Supplies

$12,300 $30,100 $36,600 $44,500

EST Maintenance $33,800 $36,400 $44,300 $53,900

Travel, Books & Prof.Devel.

$3,700 $5,100 $6,200 $7,500

Communication,Freight & Postage $3,800 $3,700 $4,500 $5,500

Insurance $20,800 $16,400 $20,000 $24,300

Auditing $5,500 $5,500 $6,700 $8,200

Debt Service $172,500 $172,500 $271,000 $512,000

TOTAL $799,400 $817,400 $1,055,600 $1,466,600

As shown in Tables III-4 and III-5, the number of connections to the Water

System including irrigation connections were summarized as follows:

• Residential In-City Connections = 2,861 + 598 (irr.) = 3,459

• Residential Out-of-City Connections = 317 + 74 (irr.) = 391

• Commercial In-City Connections = 361 + 119 (irr.) = 480

• Commercial Out-of-City Connections = 93 + 18 (irr.) = 111


Utilizing the following formula, the average base charge will be reviewed:

Annual Fixed Costs = 12 Months * [(In-City Connections (Resid. +

Commercial) * Base Rate) + (Out-of-City Connec-

tions (Resid. + Commercial) * 1.25 * Base Rate)]

$817,400 (FY ‘18) = 12 Months * [((3,459 + 480) * Base Rate) +

((391+111) * 1.25 * Base Rate)]

$817,400 = 47,268 * (Base Rate) + 7,530 * (Base Rate)

Avg. Required Base Rate = $817,400 / (47,268 + 7,530)

= $14.92 (Aggregate Average)

The City’s current base rate is approximately $11.59, which is 25% less than the

calculated value above. In addition, in the outer years the fixed costs increase

which should include considerations for larger base rates. For example,

adjustments to the City’s base rate are explored in Section V.B.

Using the same formula with the increased debt service and customer base in

2023, the average required base rate would be estimated at approximately

$18.42.

Pending any modifications to the base rates, the City’s remaining revenue

streams would have to be addressed through user fees. In the end, revenues and

expenditures will need to match, whether base rates or user rates or a portion of

both are modified. As increases to the user fees are contemplated, the City

should consider historic use patterns which include water use that averages

around 5,000 gallons per month or less.

When determining user and base rate modifications, it is important to analyze

historic irrigation water consumption and connection growth separately from

residential and commercial potable water customers. The City has expressed the

desire to explore water conservation efforts, and irrigation use is commonly much

greater than potable consumption and considered a non-essential use. Irrigation

rate modifications can potentially be a driver for customers to be more conscious

of irrigation usage. As discussed in Section III, residential and commercial

irrigation connections have increased at 3.7% and 2.5% per year for the previous


5 years. This growth is expected to decrease with the build-out of irrigable

neighborhoods such as Magnolia Point, Edgewater Landing, and Black Creek

Village. Historic irrigation consumption for the City over the previous 4 years is

presented in Table V-4.

TABLE V-4

WATER SYSTEM HISTORIC IRRIGATION CONSUMPTION

Item 2015 2016 2017 2018

Total Yearly Irrigation

Consumption (MG)94.5 112.4 112.5 105.4

Percentage of Total

City Water Consump-

tion

34.6% 39.1% 37.4% 34.0%

As shown in Table V-2 and Table V-4, the irrigation customer count accounted

for approximately 18% of total City water customers in 2018, whereas historic

irrigation consumption has accounted for more than a third (>33%) of this total

City water use. The current rate structure incorporates higher user rates for

irrigation service to account for the increased irrigation consumption. The

irrigation water consumption and associated user rates compared to potable

water user rates should continue to be monitored and considered in yearly rate

modifications.

A comparative analysis of the average monthly irrigation use review for 2011 and

2018 is presented in the following:

2011 MONTHLY IRRIGATION USE

ItemNumber of

Connections % of TotalCumulative

%









Total 598


2018 MONTHLY IRRIGATION USE

Item

Number ofConnections % of Total

Cumulative%









Total 809

The total City irrigation customer count consisted of a monthly average total of

598 customers in 2011 compared to a monthly average total of 809 customers

in 2018 resulting in a 35% aggregate increase or 5.0% growth per year. As

shown above, approximately 26% of irrigation customers utilized more than

14,000 gallons per month in 2018, and approximately 40% utilized more than

14,000 gallons per month in 2011 (14% decrease). Conversely, approximately

41% of irrigation customers utilized less than 2,000 gallons per month in 2018,

and approximately 30% utilized less than 2,000 gallons per month in 2011 (11%

increase). The 2011 irrigation consumption data is weighted more towards higher

monthly consumption rates than in 2018. This data appears to demonstrate more

conservative water irrigation usage in 2018 as compared to 2011, which could be

related to the modified irrigation rate structures in 2010 and 2016.

As the City considers appropriate rates for irrigation service, the usage charge

for those volumes above 14,000 to 20,000 gallons per month should be reviewed.

Within the City’s 2016 Reclaimed Water System Master Plan, irrigable demands

were reviewed, and the average irrigation demand within the Magnolia Point

development between September 2012 and August 2014 was approximately

12,000 gallons per month. Agronomic calculations using an average of 3/4" of

supplemental irrigation water per week would indicate demands could exceed

20,000 gallons per month pending actual lot size and irrigable area.


Newer construction is generally limiting irrigable area by reducing lot sizes and

increasing hardscapes and housing footprints. These two items along with water

conservation guidance are likely a cause for the lower tiered growth for irrigation

usage less than 4,000 gallons per month.

From a policy perspective, the City will need to consider how larger volume

irrigation rates should be shaped to encourage water conservation while also

determining a reasonable rate for older neighborhoods that were developed with

larger lot sizes. Options could include separate rate structures for areas of the

City, but must also consider management and billing activities associated with

various rate schedules.

B. WATER SYSTEM REVENUE & EXPENDITURE REQUIREMENTS

The expenditure requirements for the Water System are summarized as follows:

• Operation & Maintenance (O&M) Costs;

• Debt Service Related to Capital Improvements;

• Reserve;

• Billing Service;

• Bad Debt Expense;

• Non-financed Capital Improvements; and

• Inter-fund Transfers.

The City should continue to consider annual inflationary growth factors on rates.

An inflator such as the Municipal Cost Index (MCI) could be utilized to adjust the

rates each fiscal year to address inflationary costs that impact the operation of

the water system.

Projections for each year utilizing the information reviewed in the previous

sections are summarized in Table V-5. In general, a 2.5% inflationary factor was

used for most categories per fiscal year. The Non-Financed Capital

Improvements were inserted based on the current Capital Improvement Plan

(CIP) schedule and detailed schedule defined in Section IV. For years that

extend beyond the CIP, an average value was utilized. Actual inflationary

pressures have been less in the recent past; however, a 2.5% value is utilized

herein for conservative purposes. An inset is provided below the table to

illustrate actual percentage changes for each line item.


As shown in the table, the total revenue requirements change at a different pace

year over year due to fluctuations in debt service and Non-Financed Capital

Improvement items. It is also important to note that the provided projections

intend on fully funding reserve requirements, non-financed capital improvements,

interfund transfers, and projected debt service.

Using the expenditure projections developed in Table V-5, an excel model was

developed to project revenues in order to match expenditure needs. This is a

conceptual model that includes key assumptions. The City will be required to

track expenditure projections and update those values as actual financing costs

are known, CIP needs change, and/or actual inflationary pressures. In order to

balance the City’s expenditure projections through FY ‘28, the following approach

was utilized:

• Water Sales

- Connection growth was increased at a rate of 2.0% per year in FY ‘19

and FY ‘20, then decreased to 0.5% per year beginning in FY ‘21. As

a result, Residential Connections had an increase of approximately 20

units per year while Commercial Connections increased at

approximately 5 units per year beginning in FY ‘21.

- Irrigation meter connection counts were held constant at current values

besides an outside-city irrigation customer loss of approximately 60

customers beginning in FY ‘22. These irrigation customers, located in

the Edgewater Landing development, will be converted from the potable

water irrigation service to reclaimed water irrigation service following the

completion of the Harbor Road Wastewater Treatment Facility Phase-1

Expansion project. The existing rate structure differential between

irrigation and potable water user rates was maintained.

- The modeled projections had an inherent gross revenue reduction of

approximately 2% when compared to current water use with associated

revenue. This provides an allowance for water conservation and

decreased connection growth within the system.


AverageItem (FY ‘15 thru ’18) FY ‘18 FY’19 FY’20 FY'21 FY’22 FY ‘23 FY’24 FY’25 FY ‘26 FY ‘27 FY ‘28Operation & Maintenance 785,300$ 826,800$ 826,800$ 847,500$ 868,700$ 890,400$ 912,700$ 935,500$ 958,900$ 982,900$ 1,007,500$ 1,032,700$ Debt Service (including financing reserves) 172,500$ 172,500$ 345,000$ 169,000$ 169,000$ 234,000$ 271,000$ 345,000$ 390,000$ 429,000$ 512,000$ 512,000$ Reserve (Short-lived assets + Operating reserve) -$ -$ 57,800$ 59,200$ 60,700$ 62,200$ 63,800$ 65,400$ 67,000$ 68,700$ 70,400$ 72,200$ Non-Financed CIP (revenue) 127,593$ 120,400$ 100,000$ 30,000$ 30,000$ 30,000$ 80,000$ 42,500$ 43,600$ 44,700$ 45,800$ 46,900$ Bad Debt Expense 4,500$ -$ 4,600$ 4,700$ 4,800$ 4,900$ 5,000$ 5,100$ 5,200$ 5,300$ 5,400$ 5,500$ Billing Service 89,900$ 91,400$ 93,700$ 96,000$ 98,400$ 100,900$ 103,400$ 106,000$ 108,700$ 111,400$ 114,200$ 117,100$ Interfund Transfers (Payment in Lieu of Taxes) 63,800$ 60,200$ 59,000$ 61,000$ 63,000$ 64,000$ 67,000$ 70,000$ 74,000$ 78,000$ 82,000$ 86,000$ Interfund Transfers (Cost Recovery & Allocation) 129,300$ 116,800$ 148,700$ 153,400$ 156,900$ 161,000$ 167,700$ 176,300$ 185,300$ 194,800$ 204,800$ 215,300$

T 1,372,893$ 1,388,100$ 1,635,600$ 1,420,800$ 1,451,500$ 1,547,400$ 1,670,600$ 1,745,800$ 1,832,700$ 1,914,800$ 2,042,100$ 2,087,700$ Non-Financed CIP (Depreciation Reserve) -$ -$ -$ 70,000$ -$ -$ -$ -$ -$ -$ -$ -$

AverageItem (FY ‘15 thru ’18) FY ‘18 FY’19 FY’20 FY'21 FY’22 FY ‘23 FY’24 FY’25 FY ‘26 FY ‘27 FY ‘28Operation & Maintenance 0.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Debt Service (including financing reserves) 100.0% -51.0% 0.0% 38.5% 15.8% 27.3% 13.0% 10.0% 19.3% 0.0%Reserve (Short-lived assets + Operating reserve) 2.4% 2.5% 2.5% 2.6% 2.5% 2.4% 2.5% 2.5% 2.6%Non-Financed CIP -16.9% -70.0% 0.0% 0.0% 166.7% -46.9% 2.6% 2.5% 2.5% 2.4%Bad Debt Expense 2.2% 2.1% 2.1% 2.0% 2.0% 2.0% 1.9% 1.9% 1.9%Billing Service 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Interfund Transfers (Payment in Lieu of Taxes) 0.0% 3.4% 3.3% 1.6% 4.7% 4.5% 5.7% 5.4% 5.1% 4.9%Interfund Transfers (Cost Recovery & Allocation) 27.3% 3.2% 2.3% 2.6% 4.2% 5.1% 5.1% 5.1% 5.1% 5.1%

% change in Total 17.8% -13.1% 2.2% 6.6% 8.0% 4.5% 5.0% 4.5% 6.6% 2.2%Non-Financed CIP (Depreciation Reserve) -100.0%

TABLE V-5

Revenue Requirement per Fiscal YearWATER SYSTEM ESTIMATED EXPENDITURES

Revenue Requirement per Fiscal Year (% Changes per year)

Water System Rate AnalysisCity of Green Cove Springs, Florida Mittauer Associates, Inc. Project No. 8905-48-1 February 2019

- To accommodate near-term expenses as well as projected capital

needs, user and base rates were increased 2.0% in FY ’20 to FY ‘21,

3.5% in FY ‘22, 4.0% in FY ‘23, and 5.0% per year from FY ‘24 through

FY ‘28. The user and base rates were increased at a higher rate

beginning in FY ‘22 of the rate modification schedule to address debt

service increases as projects begin. The annual 5.0% rate increase from

FY ‘24 creates a positive net revenue for the City and provides a buffer

for larger anticipated debt service increases in FY ‘29 and ‘30.

- Other revenue sources were generally held to a 2.5% year over year

increase.

- WITF fee revenue and fees associated with developer agreements were

not considered.

- The Depreciation Reserve account increased from an existing $240,000

to a projected $605,000 in FY ‘28.

The results of the above modifications are shown per line item in Table V-6 and

overall revenue versus expenditure amounts are summarized in Table V-7.


AverageItem (FY ‘15 thru ’18) FY ‘18 FY’19 FY’20 FY’21 FY’22 FY'23 FY’24 FY’25 FY ‘26 FY ‘27 FY'28Water Sales 1,308,250$ 1,345,600$ 1,389,500$ 1,433,300$ 1,466,400$ 1,504,800$ 1,569,600$ 1,652,900$ 1,740,500$ 1,833,100$ 1,930,200$ 2,033,100$ Water Taps 56,775$ 82,400$ 50,000$ 51,300$ 52,600$ 53,900$ 55,200$ 56,600$ 58,000$ 59,500$ 61,000$ 62,500$ Water Department Services 2,440$ 4,500$ 4,600$ 4,700$ 4,800$ 4,900$ 5,000$ 5,100$ 5,200$ 5,300$ 5,400$ 5,500$ Developer Agreement Fees 4,325$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Interest-FSBA 5,613$ 10,700$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ Interest-Misc. -$ -$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ Fire Protection Fees 17,275$ 19,600$ 20,000$ 20,500$ 21,000$ 21,500$ 22,000$ 22,600$ 23,200$ 23,800$ 24,400$ 25,000$ Late Fees 11,250$ 10,900$ 11,400$ 11,700$ 12,000$ 12,300$ 12,600$ 12,900$ 13,200$ 13,500$ 13,800$ 14,100$ Transfers from Retained Earnings -$ -$ 172,500$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Misc. Fees 8,865$ 560$ 3,000$ 3,100$ 3,200$ 3,300$ 3,400$ 3,500$ 3,600$ 3,700$ 3,800$ 3,900$

T 1,414,793$ 1,474,260$ 1,659,500$ 1,533,100$ 1,568,500$ 1,609,200$ 1,676,300$ 1,762,100$ 1,852,200$ 1,947,400$ 2,047,100$ 2,152,600$ Non-Financed CIP (Depreciation Reserve) -$ 70,000$ -$ -$ -$ -$ -$ -$ -$ -$ Depreciation Reserve (Total Available per FY) 240,000$ 240,000$ 282,300$ 399,300$ 461,100$ 466,800$ 483,100$ 502,600$ 535,200$ 540,200$ 605,100$ WITF (Total Available per FY) 577,181$ 649,800$ 723,900$ 742,800$ 761,800$ 780,900$ 800,100$ 819,400$ 838,800$ 858,300$ 877,900$ Residential Connections (In-City) 2,861 2,918 2,977 2,991 3,006 3,021 3,037 3,052 3,067 3,082 3,098Residential Connections (Out-City) 317 323 330 331 333 335 336 338 340 342 343Irrigation Connections (In-City) 717 717 717 717 717 717 717 717 717 717 717Irrigation Connections (Out-City) 92 92 92 92 32 32 32 32 32 32 32Commercial Connections (In-City) 361 368 376 377 379 381 383 385 387 389 391Commercial Connections (Out-City) 93 95 97 97 98 98 99 99 100 100 101

AverageItem (FY ‘15 thru ’18) FY ‘18 FY’19 FY’20 FY’21 FY’22 FY'23 FY’24 FY’25 FY ‘26 FY ‘27 FY'28Water Sales 3.3% 3.2% 2.3% 2.6% 4.3% 5.3% 5.3% 5.3% 5.3% 5.3%Water Taps -39.3% 2.6% 2.5% 2.5% 2.4% 2.5% 2.5% 2.6% 2.5% 2.5%Water Department Services 2.2% 2.2% 2.1% 2.1% 2.0% 2.0% 2.0% 1.9% 1.9% 1.9%Developer Agreement Fees 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Interest-FSBA -29.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Interest-Misc. 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Fire Protection Fees 2.0% 2.5% 2.4% 2.4% 2.3% 2.7% 2.7% 2.6% 2.5% 2.5%Late Fees 4.6% 2.6% 2.6% 2.5% 2.4% 2.4% 2.3% 2.3% 2.2% 2.2%Misc. Fees 435.7% 3.3% 3.2% 3.1% 3.0% 2.9% 2.9% 2.8% 2.7% 2.6%

% change in Total 12.6% -7.6% 2.3% 2.6% 4.2% 5.1% 5.1% 5.1% 5.1% 5.2%

Depreciation Reserve (Change per FY) -$ 42,300$ 117,000$ 61,800$ 5,700$ 16,300$ 19,500$ 32,600$ 5,000$ 64,900$ WITF (Change per FY) 72,619$ 74,100$ 18,900$ 19,000$ 19,100$ 19,200$ 19,300$ 19,400$ 19,500$ 19,600$ Residential Connections (In-City) 57 58 15 15 15 15 15 15 15 15Residential Connections (Out-City) 6 6 2 2 2 2 2 2 2 2Irrigation Connections (In-City) 0 0 0 0 0 0 0 0 0 0Irrigation Connections (Out-City) 0 0 0 (60) 0 0 0 0 0 0Commercial Connections (In-City) 7 7 2 2 2 2 2 2 2 2Commercial Connections (Out-City) 2 2 0 0 0 0 0 0 0 1

NET CHANGE

TABLE V-6WATER SYSTEM ESTIMATED REVENUES

Estimated Revenue per Fiscal Year

Revenue Projection per Fiscal Year (% Changes per year)


Item FY’19 FY’20 FY’21 FY’22 FY'23 FY’24 FY’25 FY ‘26 FY ‘27 FY'281,659,500$ 1,533,100$ 1,568,500$ 1,609,200$ 1,676,300$ 1,762,100$ 1,852,200$ 1,947,400$ 2,047,100$ 2,152,600$ 1,635,600$ 1,420,800$ 1,451,500$ 1,547,400$ 1,670,600$ 1,745,800$ 1,832,700$ 1,914,800$ 2,042,100$ 2,087,700$

23,900$ 112,300$ 117,000$ 61,800$ 5,700$ 16,300$ 19,500$ 32,600$ 5,000$ 64,900$ 1340000 22.1% -13.1% 2.2% 6.6% 8.0% 4.5% 5.0% 4.5% 6.6% 2.2%

Rate Modifications1) Base Rate Increase: 2.0% per year (FY '20-'21), 3.5% (FY '22), 4.0% (FY '23), and 5.0% per year (FY '24-'28). 2) User Rate Increase: 2.0% per year (FY '20-'21), 3.5% (FY '22), 4.0% (FY '23), and 5.0% per year (FY '24-'28).3) 2% Connection Increase per year (FY '19 - FY '20) & 0.5% Connection Increase per year (FY '21 - FY '28)4) No growth from Reynolds Park considered with enclosed projections. 5) Debt service is based on schedule created in Table IV-2.6)

FY’19 FY’20 FY’21 FY’22 FY'23 FY’24 FY’25 FY ‘26 FY ‘27 FY'2811.59$ 11.82$ 12.06$ 12.48$ 12.98$ 13.63$ 14.31$ 15.03$ 15.78$ 16.57$

0.60$ 0.61$ 0.62$ 0.65$ 0.67$ 0.71$ 0.74$ 0.78$ 0.82$ 0.86$ 1.97$ 2.01$ 2.05$ 2.12$ 2.21$ 2.32$ 2.43$ 2.55$ 2.68$ 2.82$ 2.03$ 2.07$ 2.11$ 2.19$ 2.27$ 2.39$ 2.51$ 2.63$ 2.76$ 2.90$ 2.08$ 2.12$ 2.16$ 2.24$ 2.33$ 2.45$ 2.57$ 2.70$ 2.83$ 2.97$ 2.15$ 2.19$ 2.24$ 2.32$ 2.41$ 2.53$ 2.65$ 2.79$ 2.93$ 3.07$

11.59$ 11.82$ 12.06$ 12.48$ 12.98$ 13.63$ 14.31$ 15.03$ 15.78$ 16.57$ 1.97$ 2.01$ 2.05$ 2.12$ 2.21$ 2.32$ 2.43$ 2.55$ 2.68$ 2.82$ 2.03$ 2.07$ 2.11$ 2.19$ 2.27$ 2.39$ 2.51$ 2.63$ 2.76$ 2.90$ 2.08$ 2.12$ 2.16$ 2.24$ 2.33$ 2.45$ 2.57$ 2.70$ 2.83$ 2.97$ 2.15$ 2.19$ 2.24$ 2.32$ 2.41$ 2.53$ 2.65$ 2.79$ 2.93$ 3.07$

11.59$ 11.82$ 12.06$ 12.48$ 12.98$ 13.63$ 14.31$ 15.03$ 15.78$ 16.57$ 2.03$ 2.07$ 2.11$ 2.19$ 2.27$ 2.39$ 2.51$ 2.63$ 2.76$ 2.90$ 2.08$ 2.12$ 2.16$ 2.24$ 2.33$ 2.45$ 2.57$ 2.70$ 2.83$ 2.97$ 2.67$ 2.72$ 2.78$ 2.88$ 2.99$ 3.14$ 3.30$ 3.46$ 3.63$ 3.82$ 3.48$ 3.55$ 3.62$ 3.75$ 3.90$ 4.09$ 4.30$ 4.51$ 4.74$ 4.97$

Monthly Water Bill @ 5,000 gal/mo = 17.33$ 17.67$ 18.03$ 18.66$ 19.41$ 20.38$ 21.40$ 22.47$ 23.59$ 24.77$ Percent Change = 2.0% 2.0% 3.5% 4.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Monthly Bill Differential = 0.34$ 0.36$ 0.63$ 0.75$ 0.97$ 1.02$ 1.07$ 1.12$ 1.18$ Monthly Irrigation Bill @ 12,000 gal/mo = 36.05$ 36.77$ 37.51$ 38.82$ 40.37$ 42.39$ 44.51$ 46.74$ 49.08$ 51.53$

Percent Change = 2.0% 2.0% 3.5% 4.0% 5.0% 5.0% 5.0% 5.0% 5.0%Monthly Bill Differential = 0.72$ 0.74$ 1.31$ 1.55$ 2.02$ 2.12$ 2.23$ 2.34$ 2.45$

> 20,000 gal/mo

Estimated ExpenditureNet Revenue

10 to 15,000 gal/mo15 to 20,000 gal/mo

> 20,000 gal/mo

Projections per Fiscal YearWATER SYSTEM ESTIMATED REVENUE VS. EXPENDITURE PROJECTIONS

TABLE V-7

Estimated Revenue

Irrig

atio

n

3/4" Base Rate0 - 10,000 gal/mo

Com

mer

cial


10 to 15,000 gal/mo15 to 20,000 gal/mo

> 20,000 gal/mo

The Edgewater Landing development will transition from potable water supplied irrigation to reclaimed water supplied irrigation in FY '22, resulting in a decrease of approximately 60 outside-city irrigation connections from the water fund.

Category Rate ClassificationRate Schedule per Fiscal Year

Resid

entia

l


3 to 10,000 gal/mo10 to 15,000 gal/mo15 to 20,000 gal/mo


ATTACHMENT A

Water System Rate Projection Model

RATE ANALYSIS FOR WATER SYSTEMWATER RATE ANALYSISCITY OF GREEN COVE SPRINGS11-Feb-19Mittauer & Associates, Inc. Project No. 8905-48-1

ESTIMATED ANNUAL EXPENDITURESFY’19 FY’20 FY'21 FY’22 FY ‘23 FY’24 FY’25 FY ‘26 FY ‘27 FY ‘28

DESCRIPTION AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNTOperation & Maintenance 826,800.00$ 847,500.00$ 868,700.00$ 890,400.00$ 912,700.00$ 935,500.00$ 958,900.00$ 982,900.00$ 1,007,500.00$ 1,032,700.00$ Debt Service (including financing reserves) 345,000.00$ 169,000.00$ 169,000.00$ 234,000.00$ 271,000.00$ 345,000.00$ 390,000.00$ 429,000.00$ 512,000.00$ 512,000.00$ Reserve (Short-lived assets + Operating reserve) 57,800.00$ 59,200.00$ 60,700.00$ 62,200.00$ 63,800.00$ 65,400.00$ 67,000.00$ 68,700.00$ 70,400.00$ 72,200.00$ Non-Financed CIP (Revenue) 100,000.00$ 30,000.00$ 30,000.00$ 30,000.00$ 80,000.00$ 42,500.00$ 43,600.00$ 44,700.00$ 45,800.00$ 46,900.00$ Bad Debt Expense 4,600.00$ 4,700.00$ 4,800.00$ 4,900.00$ 5,000.00$ 5,100.00$ 5,200.00$ 5,300.00$ 5,400.00$ 5,500.00$ Billing Service 93,700.00$ 96,000.00$ 98,400.00$ 100,900.00$ 103,400.00$ 106,000.00$ 108,700.00$ 111,400.00$ 114,200.00$ 117,100.00$ Interfund Transfers - Payment in Lieu of Taxes (3% of Revenue) 59,000.00$ 61,000.00$ 63,000.00$ 64,000.00$ 67,000.00$ 70,000.00$ 74,000.00$ 78,000.00$ 82,000.00$ 86,000.00$ Interfund Transfers - Cost Recovery & Allocation (10% of Revenues) 148,700.00$ 153,400.00$ 156,900.00$ 161,000.00$ 167,700.00$ 176,300.00$ 185,300.00$ 194,800.00$ 204,800.00$ 215,300.00$ TOTAL 1,635,600$ 1,420,800$ 1,451,500$ 1,547,400$ 1,670,600$ 1,745,800$ 1,832,700$ 1,914,800$ 2,042,100$ 2,087,700$ Non-Financed CIP (Depreciation Reserve) -$ 70,000.00$ -$ -$ -$ -$ -$ -$ -$ ESTIMATED ANNUAL REVENUE

FY’19 FY’20 FY'21 FY’22 FY ‘23 FY’24 FY’25 FY ‘26 FY ‘27 FY ‘28DESCRIPTION AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNTWater Sales 1,389,500$ 1,433,300.00$ 1,466,400.00$ 1,504,800.00$ 1,569,600.00$ 1,652,900.00$ 1,740,500.00$ 1,833,100.00$ 1,930,200.00$ 2,033,100.00$ Water Taps 50,000.00$ 51,300.00$ 52,600.00$ 53,900.00$ 55,200.00$ 56,600.00$ 58,000.00$ 59,500.00$ 61,000.00$ 62,500.00$ Water Department Services 4,600.00$ 4,700.00$ 4,800.00$ 4,900.00$ 5,000.00$ 5,100.00$ 5,200.00$ 5,300.00$ 5,400.00$ 5,500.00$ Developer Agreement Fees -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Interest-FSBA 7,500.00$ 7,500.00$ 7,500.00$ 7,500.00$ 7,500.00$ 7,500.00$ 7,500.00$ 7,500.00$ 7,500.00$ 7,500.00$ Interest-Misc. 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ Fire Protection Fees 20,000.00$ 20,500.00$ 21,000.00$ 21,500.00$ 22,000.00$ 22,600.00$ 23,200.00$ 23,800.00$ 24,400.00$ 25,000.00$ Late Fees 11,400.00$ 11,700.00$ 12,000.00$ 12,300.00$ 12,600.00$ 12,900.00$ 13,200.00$ 13,500.00$ 13,800.00$ 14,100.00$ Transfers from Retained Earnings 172,500.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Misc. Fees 3,000.00$ 3,100.00$ 3,200.00$ 3,300.00$ 3,400.00$ 3,500.00$ 3,600.00$ 3,700.00$ 3,800.00$ 3,900.00$ TOTAL 1,659,500$ 1,533,100$ 1,568,500$ 1,609,200$ 1,676,300$ 1,762,100$ 1,852,200$ 1,947,400$ 2,047,100$ 2,152,600$ Depreciation Reserve (funds utilized for Capital Exp) -$ 70,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ Estimated Water Demand (gpd-AADF) 1,022,531 1,034,531 1,037,655 1,033,660 1,036,783 1,039,906 1,043,030 1,046,153 1,049,276 1,052,564 % Demand Increase 1.17% 0.30% -0.38% 0.30% 0.30% 0.30% 0.30% 0.30% 0.31%

SUMMARYFY’19 FY’20 FY'21 FY’22 FY ‘23 FY’24 FY’25 FY ‘26 FY ‘27 FY ‘28

DESCRIPTION AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNTEstimated Expenditures 1,635,600$ 1,420,800$ 1,451,500$ 1,547,400$ 1,670,600$ 1,745,800$ 1,832,700$ 1,914,800$ 2,042,100$ 2,087,700$ Estimated Revenue 1,659,500$ 1,533,100$ 1,568,500$ 1,609,200$ 1,676,300$ 1,762,100$ 1,852,200$ 1,947,400$ 2,047,100$ 2,152,600$ Difference 23,900$ 112,300$ 117,000$ 61,800$ 5,700$ 16,300$ 19,500$ 32,600$ 5,000$ 64,900$ Depreciation Reserve 240,000$ 282,300$ 399,300$ 461,100$ 466,800$ 483,100$ 502,600$ 535,200$ 540,200$ 605,100$

2.3% 2.6% 4.2% 5.1% 5.1% 5.1% 5.1% 5.2%

FY’19 FY’20 FY'21 FY’22 FY ‘23 FY’24 FY’25 FY ‘26 FY ‘27 FY ‘2811.59$ 11.82$ 12.06$ 12.48$ 12.98$ 13.63$ 14.31$ 15.03$ 15.78$ 16.57$ 0.60$ 0.61$ 0.62$ 0.65$ 0.67$ 0.71$ 0.74$ 0.78$ 0.82$ 0.86$ 1.97$ 2.01$ 2.05$ 2.12$ 2.21$ 2.32$ 2.43$ 2.55$ 2.68$ 2.82$ 2.03$ 2.07$ 2.11$ 2.19$ 2.27$ 2.39$ 2.51$ 2.63$ 2.76$ 2.90$ 2.08$ 2.12$ 2.16$ 2.24$ 2.33$ 2.45$ 2.57$ 2.70$ 2.83$ 2.97$ 2.15$ 2.19$ 2.24$ 2.32$ 2.41$ 2.53$ 2.65$ 2.79$ 2.93$ 3.07$

11.59$ 11.82$ 12.06$ 12.48$ 12.98$ 13.63$ 14.31$ 15.03$ 15.78$ 16.57$ 1.97$ 2.01$ 2.05$ 2.12$ 2.21$ 2.32$ 2.43$ 2.55$ 2.68$ 2.82$ 2.03$ 2.07$ 2.11$ 2.19$ 2.27$ 2.39$ 2.51$ 2.63$ 2.76$ 2.90$ 2.08$ 2.12$ 2.16$ 2.24$ 2.33$ 2.45$ 2.57$ 2.70$ 2.83$ 2.97$ 2.15$ 2.19$ 2.24$ 2.32$ 2.41$ 2.53$ 2.65$ 2.79$ 2.93$ 3.07$

11.59$ 11.82$ 12.06$ 12.48$ 12.98$ 13.63$ 14.31$ 15.03$ 15.78$ 16.57$ 2.03$ 2.07$ 2.11$ 2.19$ 2.27$ 2.39$ 2.51$ 2.63$ 2.76$ 2.90$ 2.08$ 2.12$ 2.16$ 2.24$ 2.33$ 2.45$ 2.57$ 2.70$ 2.83$ 2.97$ 2.67$ 2.72$ 2.78$ 2.88$ 2.99$ 3.14$ 3.30$ 3.46$ 3.63$ 3.82$ 3.48$ 3.55$ 3.62$ 3.75$ 3.90$ 4.09$ 4.30$ 4.51$ 4.74$ 4.97$

Monthly Water Bill @ 5,000 gal/mo = 17.33$ 17.67$ 18.03$ 18.66$ 19.41$ 20.38$ 21.40$ 22.47$ 23.59$ 24.77$ Percent Increase = 2.0% 2.0% 3.5% 4.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Increase per Month = 0.34$ 0.36$ 0.63$ 0.75$ 0.97$ 1.02$ 1.07$ 1.12$ 1.18$ Monthly Irrigation Bill @ 12,000 gal/mo = 36.05$ 36.77$ 37.51$ 38.82$ 40.37$ 42.39$ 44.51$ 46.74$ 49.08$ 51.53$

Percent Increase = 2.0% 2.0% 3.5% 4.0% 5.0% 5.0% 5.0% 5.0% 5.0%Increase per Month = 0.72$ 0.74$ 1.31$ 1.55$ 2.02$ 2.12$ 2.23$ 2.34$ 2.45$

0 to 10,000 gal/mo10 to 15,000 gal/mo

Com

mer

cial 3/4" Base Rate

15 to 20,000 gal/mo> 20,000 gal/mo

Category Rate Classification Rate Schedule per Fiscal Year

Res

iden

tial 3/4" Base Rate

0 - 3,000 gal/mo3 to 10,000 gal/mo

> 20,000 gal/mo

10 to 15,000 gal/mo15 to 20,000 gal/mo

Irrig

atio

n

3/4" Base Rate0 to 10,000 gal/mo10 to 15,000 gal/mo15 to 20,000 gal/mo

> 20,000 gal/mo

RATE ANALYSIS FOR WATER SYSTEMWATER RATE ANALYSISCITY OF GREEN COVE SPRINGS BLOCK 1 ONLY APPLIES TO RESIDENTIAL CUSTOMERS. 11-Feb-19 COMMERCIAL CUSTOMERS HAVE BLOCK 2 RATES FROM 0 TO 10,000 GALLONS OF USE. Mittauer & Associates, Inc. Project No. 8905-48-1 19.7$

$1.80 $13.79 $10.15 $10.40Block 1 Block 2 Block 3 Block 4 Block 5

WATER - FISCAL YEAR 19 PROJECTIONS RESIDENTIAL COMMERCIAL <3,000 3,000 - 10,000 10,001 - 15,000 15,001 - 20,000 > 20,001 RESIDENTIAL COMMERCIAL RESIDENTIAL COMMERCIALNUMBER OF NUMBER OF BASE CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE AVERAGE AVERAGE AVG UNIT CHARGE AVG UNIT CHARGE TOTAL ANNUAL

CUSTOMER TYPE CUSTOMERS CUSTOMERS ($/MONTH) ($/1000 GAL) ($/1000 GAL) ($/1000 GAL) ($/1000 GAL) ($/1000 GAL) USAGE (GAL/MON) USAGE (GAL/MON) PER MONTH ($) PER MONTH ($) REVENUE ($)

3/4" Meter 1,488 1 $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 1,521 40,725 $12.50 $96.40 $224,6063/4" Meter 843 1 $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 6,233 1,667 $19.76 $14.87 $199,9753/4" Meter 164 1 $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 12,947 74,242 $33.16 $168.46 $67,4563/4" Meter 78 35 $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 18,948 8,253 $45.54 $27.85 $54,0713/4" Meter 49 36 $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 25,906 4,964 $60.43 $21.37 $44,7753/4" Meter 40 173 $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 37,615 5,476 $85.60 $22.38 $87,2903/4" Meter (CCUA) 5 $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 2,745 $0.00 $17.00 $9223/4" Meter $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 $0.00 $0.00 $03/4" Meter $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 $0.00 $0.00 $03/4" Meter $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 $0.00 $0.00 $03/4" Meter $11.59 $0.60 $1.97 $2.03 $2.08 $2.15 $0.00 $0.00 $01" Meter 146 5 $17.21 $0.60 $1.97 $2.03 $2.08 $2.15 2,085 17,856 $18.46 $53.00 $35,1871" Meter 90 1 $17.21 $0.60 $1.97 $2.03 $2.08 $2.15 6,119 1,978 $25.15 $21.11 $27,3811" Meter 22 27 $17.21 $0.60 $1.97 $2.03 $2.08 $2.15 25,634 8,960 $65.46 $34.86 $28,9731-1/2" Meter 2 9 $24.50 $0.60 $1.97 $2.03 $2.08 $2.15 1,954 32,253 $25.67 $91.09 $10,5101-1/2" Meter 5 $24.50 $0.60 $1.97 $2.03 $2.08 $2.15 14,894 $0.00 $54.13 $2,9361-1/2" Meter 21 $24.50 $0.60 $1.97 $2.03 $2.08 $2.15 11,676 $0.00 $47.60 $12,2641-1/2" Meter 1 $24.50 $0.60 $1.97 $2.03 $2.08 $2.15 12,600 $0.00 $49.48 $6712" Meter 5 $33.91 $0.60 $1.97 $2.03 $2.08 $2.15 12,175 $0.00 $58.03 $3,1472" Meter 7 $33.91 $0.60 $1.97 $2.03 $2.08 $2.15 22,622 $0.00 $79.80 $6,4922" Meter 33 $33.91 $0.60 $1.97 $2.03 $2.08 $2.15 14,165 $0.00 $62.06 $24,4062" Meter 1 $33.91 $0.60 $1.97 $2.03 $2.08 $2.15 1,292 $0.00 $36.46 $4942" Meter (CCUA) 1 $33.91 $0.60 $1.97 $2.03 $2.08 $2.15 1,883 $0.00 $37.62 $5102" Meter (CCUA) 5 $33.91 $0.60 $1.97 $2.03 $2.08 $2.15 14,223 $0.00 $62.18 $3,3732" Meter (CCUA) 1 $33.91 $0.60 $1.97 $2.03 $2.08 $2.15 21,885 $0.00 $78.21 $1,0613" Meter 2 $46.37 $0.60 $1.97 $2.03 $2.08 $2.15 39,183 $0.00 $127.86 $3,4683" Meter 3 $46.37 $0.60 $1.97 $2.03 $2.08 $2.15 170,614 $0.00 $410.44 $16,4463" Meter 1 $46.37 $0.60 $1.97 $2.03 $2.08 $2.15 15,720 $0.00 $77.72 $1,0544" Meter 1 $185.47 $0.60 $1.97 $2.03 $2.08 $2.15 232,267 $0.00 $682.09 $9,2494" Meter 2 $185.47 $0.60 $1.97 $2.03 $2.08 $2.15 13,423 $0.00 $212.12 $5,7536" Meter 1 $341.99 $0.60 $1.97 $2.03 $2.08 $2.15 727,000 $0.00 $1,902.29 $25,7958" Meter $486.90 $0.60 $1.97 $2.03 $2.08 $2.15 0 0 $0.00 $0.00 $010" Meter $637.61 $0.60 $1.97 $2.03 $2.08 $2.15 0 0 $0.00 $0.00 $0

3/4" Meter 146 2 $14.49 $0.75 $2.46 $2.54 $2.60 $2.69 1,468 76,449 $15.59 $206.44 $32,8843/4" Meter 121 34 $14.49 $0.75 $2.46 $2.54 $2.60 $2.69 6,275 2,563 $19.19 $20.80 $36,4183/4" Meter 27 7 $14.49 $0.75 $2.46 $2.54 $2.60 $2.69 12,933 35,798 $41.42 $97.19 $21,0883/4" Meter 20 $14.49 $0.75 $2.46 $2.54 $2.60 $2.69 20,969 $62.27 $0.00 $15,2433/4" Meter $14.49 $0.75 $2.46 $2.54 $2.60 $2.69 $0.00 $0.00 $01" Meter 2 1 $21.51 $0.75 $2.46 $2.54 $2.60 $2.69 3,206 1,244 $23.92 $24.58 $8751" Meter 2 18 $21.51 $0.75 $2.46 $2.54 $2.60 $2.69 7,796 15,567 $27.36 $52.84 $12,1201" Meter 3 $21.51 $0.75 $2.46 $2.54 $2.60 $2.69 11,524 $0.00 $45.08 $1,6231-1/2" Meter 6 $30.63 $0.75 $2.46 $2.54 $2.60 $2.69 15,394 $0.00 $61.50 $4,4281-1/2" Meter 1 $30.63 $0.75 $2.46 $2.54 $2.60 $2.69 118,317 $0.00 $335.10 $4,0212" Meter 7 $42.39 $0.75 $2.46 $2.54 $2.60 $2.69 26,115 $0.00 $99.07 $8,3222" Meter 6 $42.39 $0.75 $2.46 $2.54 $2.60 $2.69 20,363 $0.00 $83.61 $6,0203" Meter 1 $57.96 $0.75 $2.46 $2.54 $2.60 $2.69 792 $0.00 $59.91 $7193" Meter $57.96 $0.75 $2.46 $2.54 $2.60 $2.69 $0.00 $0.00 $04" Meter 1 $231.84 $0.75 $2.46 $2.54 $2.60 $2.69 134,917 $0.00 $580.93 $6,9714" Meter 1 $231.84 $0.75 $2.46 $2.54 $2.60 $2.69 2,542 $0.00 $238.10 $2,8574" Meter $231.84 $0.75 $2.46 $2.54 $2.60 $2.69 $0.00 $0.00 $06" Meter $427.49 $0.75 $2.46 $2.54 $2.60 $2.69 0 0 $0.00 $0.00 $08" Meter $608.63 $0.75 $2.46 $2.54 $2.60 $2.69 0 0 $0.00 $0.00 $010" Meter $797.01 $0.75 $2.46 $2.54 $2.60 $2.69 0 0 $0.00 $0.00 $0TOTAL 3,239 472 $1,051,855

ADF (gpd) 561,215 214,961TOTAL (gpd)

0

Flow Estimates776,176

INSIDE CITY CUSTOMERS

OUTSIDE CITY CUSTOMERS

RATE ANALYSIS FOR WATER SYSTEMWATER RATE ANALYSISCITY OF GREEN COVE SPRINGS BLOCK 1 DOES NOT APPLY TO POTABLE IRRIGATION BLOCKS. 11-Feb-19 ALL CUSTOMERS HAVE BLOCK 2 RATES FROM 0 TO 10,000 GALLONS OF USE. Mittauer & Associates, Inc. Project No. 8905-48-1 20.3$


IRRIGATION - FISCAL YEAR 19 PROJECTIONS RESIDENTIAL COMMERCIAL <3,000 3,000 - 10,000 10,001 - 15,000 15,001 - 20,000 > 20,001 RESIDENTIAL COMMERCIAL RESIDENTIAL COMMERCIALNUMBER OF NUMBER OF BASE CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE AVERAGE AVERAGE AVG UNIT CHARGE AVG UNIT CHARGE TOTAL ANNUAL


3/4" Meter 141 21 $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 3,854 7,026 $19.41 $25.85 $39,3633/4" Meter 173 11 $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 5,890 13,457 $23.55 $39.08 $54,0423/4" Meter 283 $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 9,429 6,505 $30.73 $0.00 $104,3623/4" Meter $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03/4" Meter $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03/4" Meter $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03/4" Meter (CCUA) $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03/4" Meter $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03/4" Meter $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03/4" Meter $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03/4" Meter $11.59 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $01" Meter 27 7 $17.21 $2.03 $2.03 $2.08 $2.67 $3.48 13,220 1,050 $44.21 $19.34 $15,9481" Meter 3 15 $17.21 $2.03 $2.03 $2.08 $2.67 $3.48 5,417 26,077 $28.21 $82.41 $15,8491" Meter $17.21 $2.03 $2.03 $2.08 $2.67 $3.48 14,340 $0.00 $0.00 $01-1/2" Meter 3 $24.50 $2.03 $2.03 $2.08 $2.67 $3.48 7,700 $0.00 $40.13 $1,4451-1/2" Meter 6 $24.50 $2.03 $2.03 $2.08 $2.67 $3.48 42,533 $0.00 $146.96 $10,5811-1/2" Meter $24.50 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $01-1/2" Meter $24.50 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $02" Meter 16 $33.91 $2.03 $2.03 $2.08 $2.67 $3.48 12,974 $0.00 $60.40 $11,5962" Meter 4 $33.91 $2.03 $2.03 $2.08 $2.67 $3.48 81,000 $0.00 $290.24 $13,9322" Meter 3 $33.91 $2.03 $2.03 $2.08 $2.67 $3.48 221,000 $0.00 $777.44 $27,9882" Meter $33.91 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $02" Meter (CCUA) $33.91 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $02" Meter (CCUA) $33.91 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $02" Meter (CCUA) $33.91 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03" Meter 2 $46.37 $2.03 $2.03 $2.08 $2.67 $3.48 68,700 $0.00 $259.90 $6,2383" Meter $46.37 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $03" Meter $46.37 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $04" Meter $185.47 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $04" Meter $185.47 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $06" Meter $341.99 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $08" Meter $486.90 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $010" Meter $637.61 $2.03 $2.03 $2.08 $2.67 $3.48 $0.00 $0.00 $0

3/4" Meter 63 4 $14.49 $2.54 $2.54 $2.60 $3.34 $4.35 3,256 36,945 $21.23 $132.25 $22,3963/4" Meter 15 5 $14.49 $2.54 $2.54 $2.60 $3.34 $4.35 4,214 15,778 $23.66 $47.78 $7,1253/4" Meter 5 $14.49 $2.54 $2.54 $2.60 $3.34 $4.35 10,000 $38.34 $0.00 $2,3003/4" Meter $14.49 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $03/4" Meter $14.49 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $01" Meter 1 4 $21.51 $2.54 $2.54 $2.60 $3.34 $4.35 1,050 3,770 $24.18 $31.08 $1,7821" Meter 2 $21.51 $2.54 $2.54 $2.60 $3.34 $4.35 11,915 $0.00 $46.79 $1,1231" Meter $21.51 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $01-1/2" Meter $30.63 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $01-1/2" Meter $30.63 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $02" Meter 3 $42.39 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $42.39 $1,5262" Meter $42.39 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $03" Meter $57.96 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $03" Meter $57.96 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $04" Meter $231.84 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $04" Meter $231.84 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $04" Meter $231.84 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $06" Meter $427.49 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $08" Meter $608.63 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $010" Meter $797.01 $2.54 $2.54 $2.60 $3.34 $4.35 $0.00 $0.00 $0TOTAL 711 106 $337,595

ADF (gpd) 161,864 84,491TOTAL (gpd)



0



ESTIMATED ANNUAL EXPENDITURES ESTIMATED ANNUAL REVENUEFY '20 FY '20

DESCRIPTION AMOUNT DESCRIPTION AMOUNTOperation & Maintenance 847,500.00$ Water Sales 1,433,300.00$ Debt Service (including financing reserves) 169,000.00$ Water Taps 51,300.00$ Reserve (Short-lived assets + Operating reserve) 59,200.00$ Water Department Services 4,700.00$ Capital Expenditures (Revenue) 30,000.00$ Developer Agreement Fees -$ Bad Debt Expense 4,700.00$ Interest-FSBA 7,500.00$ Billing Service 96,000.00$ Interest-Misc. 1,000.00$ Interfund Transfers - Payment in Lieu of Taxes (3% of Revenue) 61,000.00$ Fire Protection Fees 20,500.00$ Interfund Transfers - Cost Recovery & Allocation (10% of Revenues) 153,400.00$ Late Fees 11,700.00$ TOTAL 1,420,800$ Misc. Fees 3,100.00$ Capital Expenditures (Depreciation Reserve) 70,000.00$ TOTAL 1,533,100$

Depreciation Reserve (funds utilized for Capital Exp) 70,000.00$ SUMMARY

FY '20DESCRIPTION AMOUNTEstimated Expenditures 1,420,800$ Estimated Revenue 1,533,100$ Difference 112,300$ Percentage increase #REF!

3/4" Meter Base Rate Increase: 0.23$ 2.0% BLOCK 1 ONLY APPLIES TO RESIDENTIAL CUSTOMERS. User Rate Increase: 2.0% COMMERCIAL CUSTOMERS HAVE BLOCK 2 RATES FROM 0 TO 10,000 GALLONS OF USE.

20.1$ $1.84 $14.07 $10.35 $10.61

Block 1 Block 2 Block 3 Block 4 Block 5WATER - FISCAL YEAR 20 PROJECTIONS RESIDENTIAL COMMERCIAL <3,000 3,000 - 10,000 10,001 - 15,000 15,001 - 20,000 > 20,001 RESIDENTIAL COMMERCIAL RESIDENTIAL COMMERCIAL

NUMBER OF NUMBER OF BASE CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE AVERAGE AVERAGE AVG UNIT CHARGE AVG UNIT CHARGE TOTAL ANNUALCUSTOMER TYPE CUSTOMERS CUSTOMERS ($/MONTH) ($/1000 GAL) ($/1000 GAL) ($/1000 GAL) ($/1000 GAL) ($/1000 GAL) USAGE (GAL/MON) USAGE (GAL/MON) PER MONTH ($) PER MONTH ($) REVENUE ($)

NEW CONNECTIONS 58 7 $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 5,000.0 5,000.0 $17.67 $21.87 $14,1383/4" Meter 1,488 1 $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 1,521 40,725 $12.75 $98.32 $229,0663/4" Meter 843 1 $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 6,233 1,667 $20.15 $15.17 $203,9563/4" Meter 164 1 $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 12,947 74,242 $33.82 $171.83 $68,8023/4" Meter 78 35 $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 18,948 8,253 $46.45 $28.40 $55,1503/4" Meter 49 36 $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 25,906 4,964 $61.63 $21.79 $45,6693/4" Meter 40 173 $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 37,615 5,476 $87.31 $22.82 $89,0313/4" Meter 5 $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 2,745 $0.00 $17.34 $9403/4" Meter $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 $0.00 $0.00 $03/4" Meter $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 $0.00 $0.00 $03/4" Meter $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 $0.00 $0.00 $03/4" Meter $11.82 $0.61 $2.01 $2.07 $2.12 $2.19 $0.00 $0.00 $01" Meter 146 5 $17.55 $0.61 $2.01 $2.07 $2.12 $2.19 2,085 17,856 $18.83 $54.06 $35,8861" Meter 90 1 $17.55 $0.61 $2.01 $2.07 $2.12 $2.19 6,119 1,978 $25.65 $21.53 $27,9251" Meter 22 27 $17.55 $0.61 $2.01 $2.07 $2.12 $2.19 25,634 8,960 $66.77 $35.56 $29,5511-1/2" Meter 2 9 $24.99 $0.61 $2.01 $2.07 $2.12 $2.19 1,954 32,253 $26.18 $92.91 $10,7201-1/2" Meter 5 $24.99 $0.61 $2.01 $2.07 $2.12 $2.19 14,894 $0.00 $55.21 $2,9951-1/2" Meter 21 $24.99 $0.61 $2.01 $2.07 $2.12 $2.19 11,676 $0.00 $48.55 $12,5091-1/2" Meter 1 $24.99 $0.61 $2.01 $2.07 $2.12 $2.19 12,600 $0.00 $50.46 $6842" Meter 5 $34.58 $0.61 $2.01 $2.07 $2.12 $2.19 12,175 $0.00 $59.18 $3,2102" Meter 7 $34.58 $0.61 $2.01 $2.07 $2.12 $2.19 22,622 $0.00 $81.39 $6,6222" Meter 33 $34.58 $0.61 $2.01 $2.07 $2.12 $2.19 14,165 $0.00 $63.30 $24,8922" Meter 1 $34.58 $0.61 $2.01 $2.07 $2.12 $2.19 1,292 $0.00 $37.18 $5042" Meter (CCUA) 1 $34.58 $0.61 $2.01 $2.07 $2.12 $2.19 1,883 $0.00 $38.37 $5202" Meter (CCUA) 5 $34.58 $0.61 $2.01 $2.07 $2.12 $2.19 14,223 $0.00 $63.42 $3,4402" Meter (CCUA) 1 $34.58 $0.61 $2.01 $2.07 $2.12 $2.19 21,885 $0.00 $79.77 $1,0823" Meter 2 $47.29 $0.61 $2.01 $2.07 $2.12 $2.19 39,183 $0.00 $130.41 $3,5373" Meter 3 $47.29 $0.61 $2.01 $2.07 $2.12 $2.19 170,614 $0.00 $418.64 $16,7743" Meter 1 $47.29 $0.61 $2.01 $2.07 $2.12 $2.19 15,720 $0.00 $79.26 $1,0754" Meter 1 $189.15 $0.61 $2.01 $2.07 $2.12 $2.19 232,267 $0.00 $695.71 $9,4344" Meter 2 $189.15 $0.61 $2.01 $2.07 $2.12 $2.19 13,423 $0.00 $216.33 $5,8676" Meter 1 $348.78 $0.61 $2.01 $2.07 $2.12 $2.19 727,000 $0.00 $1,940.28 $26,3108" Meter $496.56 $0.61 $2.01 $2.07 $2.12 $2.19 0 0 $0.00 $0.00 $010" Meter $650.26 $0.61 $2.01 $2.07 $2.12 $2.19 0 0 $0.00 $0.00 $0

NEW CONNECTIONS 6 2 $14.78 $0.77 $2.51 $2.59 $2.65 $2.74 5,000 5,000 $18.60 $27.33 $1,9953/4" Meter 146 2 $14.78 $0.77 $2.51 $2.59 $2.65 $2.74 1,468 76,449 $15.90 $210.57 $33,5373/4" Meter 121 34 $14.78 $0.77 $2.51 $2.59 $2.65 $2.74 6,275 2,563 $19.58 $21.21 $37,1423/4" Meter 27 7 $14.78 $0.77 $2.51 $2.59 $2.65 $2.74 12,933 35,798 $42.24 $99.14 $21,5093/4" Meter 20 $14.78 $0.77 $2.51 $2.59 $2.65 $2.74 20,969 $63.51 $0.00 $15,5473/4" Meter $14.78 $0.77 $2.51 $2.59 $2.65 $2.74 $0.00 $0.00 $01" Meter 2 1 $21.94 $0.77 $2.51 $2.59 $2.65 $2.74 3,206 1,244 $24.39 $25.06 $8921" Meter 2 18 $21.94 $0.77 $2.51 $2.59 $2.65 $2.74 7,796 15,567 $27.90 $53.89 $12,3621" Meter 3 $21.94 $0.77 $2.51 $2.59 $2.65 $2.74 11,524 $0.00 $45.98 $1,6551-1/2" Meter 6 $31.23 $0.77 $2.51 $2.59 $2.65 $2.74 15,394 $0.00 $62.72 $4,5161-1/2" Meter 1 $31.23 $0.77 $2.51 $2.59 $2.65 $2.74 118,317 $0.00 $341.80 $4,1022" Meter 7 $43.23 $0.77 $2.51 $2.59 $2.65 $2.74 26,115 $0.00 $101.05 $8,4882" Meter 6 $43.23 $0.77 $2.51 $2.59 $2.65 $2.74 20,363 $0.00 $85.28 $6,1403" Meter 1 $59.11 $0.77 $2.51 $2.59 $2.65 $2.74 792 $0.00 $61.10 $7333" Meter $59.11 $0.77 $2.51 $2.59 $2.65 $2.74 $0.00 $0.00 $04" Meter 1 $236.44 $0.77 $2.51 $2.59 $2.65 $2.74 134,917 $0.00 $592.51 $7,1104" Meter 1 $236.44 $0.77 $2.51 $2.59 $2.65 $2.74 2,542 $0.00 $242.82 $2,9144" Meter $236.44 $0.77 $2.51 $2.59 $2.65 $2.74 $0.00 $0.00 $06" Meter $435.97 $0.77 $2.51 $2.59 $2.65 $2.74 0 0 $0.00 $0.00 $08" Meter $620.70 $0.77 $2.51 $2.59 $2.65 $2.74 0 0 $0.00 $0.00 $010" Meter $812.83 $0.77 $2.51 $2.59 $2.65 $2.74 0 0 $0.00 $0.00 $0TOTAL 3,303 481 $1,088,933

ADF (gpd) 571,736 216,440TOTAL (gpd)



0










0





DESCRIPTION AMOUNT DESCRIPTION AMOUNTOperation & Maintenance 868,700.00$ Water Sales 1,466,400.00$ Debt Service (including financing reserves) 169,000.00$ Water Taps 52,600.00$ Reserve (Short-lived assets + Operating reserve) 60,700.00$ Water Department Services 4,800.00$ Capital Expenditures (Revenue) 30,000.00$ Developer Agreement Fees -$ Bad Debt Expense 4,800.00$ Interest-FSBA 7,500.00$ Billing Service 98,400.00$ Interest-Misc. 1,000.00$ Interfund Transfers - Payment in Lieu of Taxes (3% of Revenue) 63,000.00$ Fire Protection Fees 21,000.00$ Interfund Transfers - Cost Recovery & Allocation (10% of Revenues) 156,900.00$ Late Fees 12,000.00$ TOTAL 1,451,500$ Misc. Fees 3,200.00$ Capital Expenditures (Depreciation Reserve) -$ TOTAL 1,568,500$

Depreciation Reserve (funds utilized for Capital Exp) -$ SUMMARY

FY '21DESCRIPTION AMOUNTEstimated Expenditures 1,451,500$ Estimated Revenue 1,568,500$ Difference 117,000$ Percentage increase BLOCK 1 ONLY APPLIES TO RESIDENTIAL CUSTOMERS.

3/4" Meter Base Rate Increase: 0.24$ 2.0% COMMERCIAL CUSTOMERS HAVE BLOCK 2 RATES FROM 0 TO 10,000 GALLONS OF USE. User Rate Increase: 2.0% 20.5$


WATER- FISCAL YEAR 21 PROJECTIONS RESIDENTIAL COMMERCIAL <3,000 3,000 - 10,000 10,001 - 15,000 15,001 - 20,000 > 20,001 RESIDENTIAL COMMERCIAL RESIDENTIAL COMMERCIALNUMBER OF NUMBER OF BASE CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE AVERAGE AVERAGE AVG UNIT CHARGE AVG UNIT CHARGE TOTAL ANNUAL




ADF (gpd) 574,531 216,769TOTAL (gpd)



0






3/4" Meter 141 21 $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 3,854 7,026 $20.20 $26.90 $40,9563/4" Meter 173 11 $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 5,890 13,457 $24.50 $40.66 $56,2293/4" Meter 283 $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 9,429 6,505 $31.97 $0.00 $108,5843/4" Meter $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03/4" Meter $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03/4" Meter $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03/4" Meter (CCUA) $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03/4" Meter $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03/4" Meter $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03/4" Meter $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03/4" Meter $12.06 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $01" Meter 27 7 $17.91 $2.11 $2.11 $2.16 $2.78 $3.62 13,220 1,050 $46.00 $20.13 $16,5931" Meter 3 15 $17.91 $2.11 $2.11 $2.16 $2.78 $3.62 5,417 26,077 $29.35 $85.74 $16,4901" Meter $17.91 $2.11 $2.11 $2.16 $2.78 $3.62 14,340 $0.00 $0.00 $01-1/2" Meter 3 $25.49 $2.11 $2.11 $2.16 $2.78 $3.62 7,700 $0.00 $41.76 $1,5031-1/2" Meter 6 $25.49 $2.11 $2.11 $2.16 $2.78 $3.62 42,533 $0.00 $152.91 $11,0091-1/2" Meter $25.49 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $01-1/2" Meter $25.49 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $02" Meter 16 $35.29 $2.11 $2.11 $2.16 $2.78 $3.62 12,974 $0.00 $62.84 $12,0652" Meter 4 $35.29 $2.11 $2.11 $2.16 $2.78 $3.62 81,000 $0.00 $301.97 $14,4952" Meter 3 $35.29 $2.11 $2.11 $2.16 $2.78 $3.62 221,000 $0.00 $808.85 $29,1192" Meter $35.29 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $02" Meter (CCUA) $35.29 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.002" Meter (CCUA) $35.29 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.002" Meter (CCUA) $35.29 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03" Meter 2 $48.25 $2.11 $2.11 $2.16 $2.78 $3.62 68,700 $0.00 $270.40 $6,4903" Meter $48.25 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $03" Meter $48.25 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $04" Meter $192.99 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $04" Meter $192.99 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $06" Meter $355.86 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $08" Meter $506.64 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $010" Meter $663.47 $2.11 $2.11 $2.16 $2.78 $3.62 $0.00 $0.00 $0





0





Depreciation Reserve (funds utilized for Capital Exp) -$

SUMMARYFY '22

DESCRIPTION AMOUNTEstimated Expenditures 1,547,400$ Estimated Revenue 1,609,200$ Difference 61,800$ Percentage increase 12.4218 0.36 BLOCK 1 ONLY APPLIES TO RESIDENTIAL CUSTOMERS.







ADF (gpd) 577,325 217,098TOTAL (gpd)



0











0






FY '23DESCRIPTION AMOUNTEstimated Expenditures 1,670,600$ Estimated Revenue 1,676,300$ Difference 5,700$ Percentage increase #REF! 12.8544 0.37 BLOCK 1 ONLY APPLIES TO RESIDENTIAL CUSTOMERS.





NEW CONNECTIONS 103 13 $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 5,000.0 5,000.0 $19.41 $24.01 $27,7343/4" Meter 1,488 1 $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 1,521 40,725 $14.00 $107.96 $251,5433/4" Meter 843 1 $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 6,233 1,667 $22.13 $16.66 $223,9543/4" Meter 164 1 $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 12,947 74,242 $37.14 $188.66 $75,5453/4" Meter 78 35 $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 18,948 8,253 $51.00 $31.19 $60,5543/4" Meter 49 36 $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 25,906 4,964 $67.67 $23.93 $50,1443/4" Meter 40 173 $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 37,615 5,476 $95.87 $25.06 $97,7563/4" Meter 5 $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 2,745 $0.00 $19.04 $1,0333/4" Meter $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 $0.00 $0.00 $03/4" Meter $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 $0.00 $0.00 $03/4" Meter $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 $0.00 $0.00 $03/4" Meter $12.98 $0.67 $2.21 $2.27 $2.33 $2.41 $0.00 $0.00 $01" Meter 146 5 $19.27 $0.67 $2.21 $2.27 $2.33 $2.41 2,085 17,856 $20.67 $59.36 $39,4071" Meter 90 1 $19.27 $0.67 $2.21 $2.27 $2.33 $2.41 6,119 1,978 $28.17 $23.64 $30,6641" Meter 22 27 $19.27 $0.67 $2.21 $2.27 $2.33 $2.41 25,634 8,960 $73.31 $39.04 $32,4471-1/2" Meter 2 9 $27.44 $0.67 $2.21 $2.27 $2.33 $2.41 1,954 32,253 $28.75 $102.02 $11,7711-1/2" Meter 5 $27.44 $0.67 $2.21 $2.27 $2.33 $2.41 14,894 $0.00 $60.63 $3,2881-1/2" Meter 21 $27.44 $0.67 $2.21 $2.27 $2.33 $2.41 11,676 $0.00 $53.31 $13,7351-1/2" Meter 1 $27.44 $0.67 $2.21 $2.27 $2.33 $2.41 12,600 $0.00 $55.41 $7512" Meter 5 $37.98 $0.67 $2.21 $2.27 $2.33 $2.41 12,175 $0.00 $64.98 $3,5252" Meter 7 $37.98 $0.67 $2.21 $2.27 $2.33 $2.41 22,622 $0.00 $89.37 $7,2712" Meter 33 $37.98 $0.67 $2.21 $2.27 $2.33 $2.41 14,165 $0.00 $69.51 $27,3332" Meter 1 $37.98 $0.67 $2.21 $2.27 $2.33 $2.41 1,292 $0.00 $40.83 $5542" Meter (CCUA) 1 $37.98 $0.67 $2.21 $2.27 $2.33 $2.41 1,883 $0.00 $42.13 $5712" Meter (CCUA) 5 $37.98 $0.67 $2.21 $2.27 $2.33 $2.41 14,223 $0.00 $69.64 $3,7772" Meter (CCUA) 1 $37.98 $0.67 $2.21 $2.27 $2.33 $2.41 21,885 $0.00 $87.59 $1,1883" Meter 2 $51.93 $0.67 $2.21 $2.27 $2.33 $2.41 39,183 $0.00 $143.19 $3,8833" Meter 3 $51.93 $0.67 $2.21 $2.27 $2.33 $2.41 170,614 $0.00 $459.65 $18,4173" Meter 1 $51.93 $0.67 $2.21 $2.27 $2.33 $2.41 15,720 $0.00 $87.04 $1,1804" Meter 1 $207.71 $0.67 $2.21 $2.27 $2.33 $2.41 232,267 $0.00 $763.88 $10,3584" Meter 2 $207.71 $0.67 $2.21 $2.27 $2.33 $2.41 13,423 $0.00 $237.56 $6,4436" Meter 1 $383.01 $0.67 $2.21 $2.27 $2.33 $2.41 727,000 $0.00 $2,130.36 $28,8888" Meter $545.29 $0.67 $2.21 $2.27 $2.33 $2.41 0 0 $0.00 $0.00 $010" Meter $714.08 $0.67 $2.21 $2.27 $2.33 $2.41 0 0 $0.00 $0.00 $0


ADF (gpd) 580,120 217,426TOTAL (gpd)



0











0






FY '24DESCRIPTION AMOUNTEstimated Expenditures 1,745,800$ Estimated Revenue 1,762,100$ Difference 16,300$ Percentage increase #REF! BLOCK 1 ONLY APPLIES TO RESIDENTIAL CUSTOMERS.






NEW CONNECTIONS 14 2 $17.04 $0.88 $2.90 $2.98 $3.06 $3.16 5,000 5,000 $21.45 $31.52 $4,3593/4" Meter 146 2 $17.04 $0.88 $2.90 $2.98 $3.06 $3.16 1,468 76,449 $18.33 $242.76 $38,6713/4" Meter 121 34 $17.04 $0.88 $2.90 $2.98 $3.06 $3.16 6,275 2,563 $22.57 $24.46 $42,8273/4" Meter 27 7 $17.04 $0.88 $2.90 $2.98 $3.06 $3.16 12,933 35,798 $48.70 $114.29 $24,7983/4" Meter 20 $17.04 $0.88 $2.90 $2.98 $3.06 $3.16 20,969 $73.22 $0.00 $17,9243/4" Meter $17.04 $0.88 $2.90 $2.98 $3.06 $3.16 $0.00 $0.00 $01" Meter 2 1 $25.30 $0.88 $2.90 $2.98 $3.06 $3.16 3,206 1,244 $28.13 $28.90 $1,0291" Meter 2 18 $25.30 $0.88 $2.90 $2.98 $3.06 $3.16 7,796 15,567 $32.17 $62.13 $14,2521" Meter 3 $25.30 $0.88 $2.90 $2.98 $3.06 $3.16 11,524 $0.00 $53.01 $1,9081-1/2" Meter 6 $36.02 $0.88 $2.90 $2.98 $3.06 $3.16 15,394 $0.00 $72.32 $5,2071-1/2" Meter 1 $36.02 $0.88 $2.90 $2.98 $3.06 $3.16 118,317 $0.00 $394.04 $4,7292" Meter 7 $49.85 $0.88 $2.90 $2.98 $3.06 $3.16 26,115 $0.00 $116.50 $9,7862" Meter 6 $49.85 $0.88 $2.90 $2.98 $3.06 $3.16 20,363 $0.00 $98.32 $7,0793" Meter 1 $68.16 $0.88 $2.90 $2.98 $3.06 $3.16 792 $0.00 $70.46 $8453" Meter $68.16 $0.88 $2.90 $2.98 $3.06 $3.16 $0.00 $0.00 $04" Meter 1 $272.64 $0.88 $2.90 $2.98 $3.06 $3.16 134,917 $0.00 $683.13 $8,1984" Meter 1 $272.64 $0.88 $2.90 $2.98 $3.06 $3.16 2,542 $0.00 $280.00 $3,3604" Meter $272.64 $0.88 $2.90 $2.98 $3.06 $3.16 $0.00 $0.00 $06" Meter $502.73 $0.88 $2.90 $2.98 $3.06 $3.16 0 0 $0.00 $0.00 $08" Meter $715.75 $0.88 $2.90 $2.98 $3.06 $3.16 0 0 $0.00 $0.00 $010" Meter $937.30 $0.88 $2.90 $2.98 $3.06 $3.16 0 0 $0.00 $0.00 $0TOTAL 3,371 489 $1,274,691

ADF (gpd) 582,914 217,755TOTAL (gpd)



0











0









WATER- FISCAL YEAR 25 PROJECTIONS RESIDENTIAL COMMERCIAL <3,000 3,000 - 10,000 10,001 - 15,000 15,001 - 20,000 > 20,001 RESIDENTIAL COMMERCIAL RESIDENTIAL COMMERCIAL. NUMBER OF NUMBER OF BASE CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE UNIT CHARGE AVERAGE AVERAGE AVG UNIT CHARGE AVG UNIT CHARGE TOTAL ANNUAL



NEW CONNECTIONS 16 2 $17.89 $0.93 $3.04 $3.13 $3.21 $3.32 5,000 5,000 $22.52 $33.09 $5,1183/4" Meter 146 2 $17.89 $0.93 $3.04 $3.13 $3.21 $3.32 1,468 76,449 $19.25 $254.89 $40,6013/4" Meter 121 34 $17.89 $0.93 $3.04 $3.13 $3.21 $3.32 6,275 2,563 $23.70 $25.68 $44,9643/4" Meter 27 7 $17.89 $0.93 $3.04 $3.13 $3.21 $3.32 12,933 35,798 $51.14 $120.00 $26,0373/4" Meter 20 $17.89 $0.93 $3.04 $3.13 $3.21 $3.32 20,969 $76.88 $0.00 $18,8203/4" Meter $17.89 $0.93 $3.04 $3.13 $3.21 $3.32 $0.00 $0.00 $01" Meter 2 1 $26.56 $0.93 $3.04 $3.13 $3.21 $3.32 3,206 1,244 $29.53 $30.34 $1,0801" Meter 2 18 $26.56 $0.93 $3.04 $3.13 $3.21 $3.32 7,796 15,567 $33.78 $65.24 $14,9641" Meter 3 $26.56 $0.93 $3.04 $3.13 $3.21 $3.32 11,524 $0.00 $55.66 $2,0041-1/2" Meter 6 $37.81 $0.93 $3.04 $3.13 $3.21 $3.32 15,394 $0.00 $75.93 $5,4671-1/2" Meter 1 $37.81 $0.93 $3.04 $3.13 $3.21 $3.32 118,317 $0.00 $413.74 $4,9652" Meter 7 $52.34 $0.93 $3.04 $3.13 $3.21 $3.32 26,115 $0.00 $122.32 $10,2752" Meter 6 $52.34 $0.93 $3.04 $3.13 $3.21 $3.32 20,363 $0.00 $103.24 $7,4333" Meter 1 $71.57 $0.93 $3.04 $3.13 $3.21 $3.32 792 $0.00 $73.97 $8883" Meter $71.57 $0.93 $3.04 $3.13 $3.21 $3.32 $0.00 $0.00 $04" Meter 1 $286.25 $0.93 $3.04 $3.13 $3.21 $3.32 134,917 $0.00 $717.26 $8,6074" Meter 1 $286.25 $0.93 $3.04 $3.13 $3.21 $3.32 2,542 $0.00 $293.97 $3,5284" Meter $286.25 $0.93 $3.04 $3.13 $3.21 $3.32 $0.00 $0.00 $06" Meter $527.81 $0.93 $3.04 $3.13 $3.21 $3.32 0 0 $0.00 $0.00 $08" Meter $751.46 $0.93 $3.04 $3.13 $3.21 $3.32 0 0 $0.00 $0.00 $010" Meter $984.06 $0.93 $3.04 $3.13 $3.21 $3.32 0 0 $0.00 $0.00 $0TOTAL 3,388 491 $1,343,372

ADF (gpd) 585,709 218,084TOTAL (gpd)



0






3/4" Meter 141 21 $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 3,854 7,026 $23.97 $31.92 $48,6003/4" Meter 173 11 $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 5,890 13,457 $29.07 $48.25 $66,7243/4" Meter 283 $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 9,429 6,505 $37.94 $0.00 $128,8543/4" Meter $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03/4" Meter $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03/4" Meter $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03/4" Meter (CCUA) $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03/4" Meter $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03/4" Meter $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03/4" Meter $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03/4" Meter $14.31 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $01" Meter 27 7 $21.25 $2.51 $2.51 $2.57 $3.30 $4.30 13,220 1,050 $54.58 $23.88 $19,6911" Meter 3 15 $21.25 $2.51 $2.51 $2.57 $3.30 $4.30 5,417 26,077 $34.83 $101.75 $19,5681" Meter $21.25 $2.51 $2.51 $2.57 $3.30 $4.30 14,340 $0.00 $0.00 $01-1/2" Meter 3 $30.25 $2.51 $2.51 $2.57 $3.30 $4.30 7,700 $0.00 $49.55 $1,7841-1/2" Meter 6 $30.25 $2.51 $2.51 $2.57 $3.30 $4.30 42,533 $0.00 $181.45 $13,0651-1/2" Meter $30.25 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $01-1/2" Meter $30.25 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $02" Meter 16 $41.87 $2.51 $2.51 $2.57 $3.30 $4.30 12,974 $0.00 $74.57 $14,3172" Meter 4 $41.87 $2.51 $2.51 $2.57 $3.30 $4.30 81,000 $0.00 $358.35 $17,2012" Meter 3 $41.87 $2.51 $2.51 $2.57 $3.30 $4.30 221,000 $0.00 $959.89 $34,5562" Meter $41.87 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $02" Meter (CCUA) $41.87 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.002" Meter (CCUA) $41.87 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.002" Meter (CCUA) $41.87 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03" Meter 2 $57.25 $2.51 $2.51 $2.57 $3.30 $4.30 68,700 $0.00 $320.89 $7,7013" Meter $57.25 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $03" Meter $57.25 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $04" Meter $229.00 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $04" Meter $229.00 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $06" Meter $422.25 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $08" Meter $601.17 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $010" Meter $787.25 $2.51 $2.51 $2.57 $3.30 $4.30 $0.00 $0.00 $0





0












NEW CONNECTIONS 18 2 $18.79 $0.97 $3.19 $3.29 $3.37 $3.48 5,000 5,000 $23.65 $34.75 $5,9423/4" Meter 146 2 $18.79 $0.97 $3.19 $3.29 $3.37 $3.48 1,468 76,449 $20.21 $267.64 $42,6413/4" Meter 121 34 $18.79 $0.97 $3.19 $3.29 $3.37 $3.48 6,275 2,563 $24.89 $26.97 $47,2233/4" Meter 27 7 $18.79 $0.97 $3.19 $3.29 $3.37 $3.48 12,933 35,798 $53.70 $126.01 $27,3423/4" Meter 20 $18.79 $0.97 $3.19 $3.29 $3.37 $3.48 20,969 $80.73 $0.00 $19,7623/4" Meter $18.79 $0.97 $3.19 $3.29 $3.37 $3.48 $0.00 $0.00 $01" Meter 2 1 $27.90 $0.97 $3.19 $3.29 $3.37 $3.48 3,206 1,244 $31.01 $31.87 $1,1341" Meter 2 18 $27.90 $0.97 $3.19 $3.29 $3.37 $3.48 7,796 15,567 $35.48 $68.51 $15,7151" Meter 3 $27.90 $0.97 $3.19 $3.29 $3.37 $3.48 11,524 $0.00 $58.45 $2,1041-1/2" Meter 6 $39.71 $0.97 $3.19 $3.29 $3.37 $3.48 15,394 $0.00 $79.74 $5,7411-1/2" Meter 1 $39.71 $0.97 $3.19 $3.29 $3.37 $3.48 118,317 $0.00 $434.44 $5,2132" Meter 7 $54.97 $0.97 $3.19 $3.29 $3.37 $3.48 26,115 $0.00 $128.45 $10,7902" Meter 6 $54.97 $0.97 $3.19 $3.29 $3.37 $3.48 20,363 $0.00 $108.41 $7,8063" Meter 1 $75.17 $0.97 $3.19 $3.29 $3.37 $3.48 792 $0.00 $77.69 $9323" Meter $75.17 $0.97 $3.19 $3.29 $3.37 $3.48 $0.00 $0.00 $04" Meter 1 $300.65 $0.97 $3.19 $3.29 $3.37 $3.48 134,917 $0.00 $753.21 $9,0394" Meter 1 $300.65 $0.97 $3.19 $3.29 $3.37 $3.48 2,542 $0.00 $308.76 $3,7054" Meter $300.65 $0.97 $3.19 $3.29 $3.37 $3.48 $0.00 $0.00 $06" Meter $554.37 $0.97 $3.19 $3.29 $3.37 $3.48 0 0 $0.00 $0.00 $08" Meter $789.27 $0.97 $3.19 $3.29 $3.37 $3.48 0 0 $0.00 $0.00 $010" Meter $1,033.57 $0.97 $3.19 $3.29 $3.37 $3.48 0 0 $0.00 $0.00 $0TOTAL 3,405 493 $1,416,062

ADF (gpd) 588,503 218,413TOTAL (gpd)



0






3/4" Meter 141 21 $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 3,854 7,026 $25.17 $33.52 $51,0393/4" Meter 173 11 $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 5,890 13,457 $30.53 $50.67 $70,0703/4" Meter 283 $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 9,429 6,505 $39.84 $0.00 $135,3123/4" Meter $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03/4" Meter $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03/4" Meter $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03/4" Meter (CCUA) $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03/4" Meter $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03/4" Meter $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03/4" Meter $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03/4" Meter $15.03 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $01" Meter 27 7 $22.32 $2.63 $2.63 $2.70 $3.46 $4.51 13,220 1,050 $57.32 $25.08 $20,6781" Meter 3 15 $22.32 $2.63 $2.63 $2.70 $3.46 $4.51 5,417 26,077 $36.57 $106.84 $20,5481" Meter $22.32 $2.63 $2.63 $2.70 $3.46 $4.51 14,340 $0.00 $0.00 $01-1/2" Meter 3 $31.77 $2.63 $2.63 $2.70 $3.46 $4.51 7,700 $0.00 $52.04 $1,8731-1/2" Meter 6 $31.77 $2.63 $2.63 $2.70 $3.46 $4.51 42,533 $0.00 $190.54 $13,7191-1/2" Meter $31.77 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $01-1/2" Meter $31.77 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $02" Meter 16 $43.97 $2.63 $2.63 $2.70 $3.46 $4.51 12,974 $0.00 $78.31 $15,0362" Meter 4 $43.97 $2.63 $2.63 $2.70 $3.46 $4.51 81,000 $0.00 $376.28 $18,0622" Meter 3 $43.97 $2.63 $2.63 $2.70 $3.46 $4.51 221,000 $0.00 $1,007.89 $36,2842" Meter $43.97 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $02" Meter (CCUA) $43.97 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $02" Meter (CCUA) $43.97 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $02" Meter (CCUA) $43.97 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03" Meter 2 $60.13 $2.63 $2.63 $2.70 $3.46 $4.51 68,700 $0.00 $336.95 $8,0873" Meter $60.13 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $03" Meter $60.13 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $04" Meter $240.52 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $04" Meter $240.52 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $06" Meter $443.50 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $08" Meter $631.42 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $010" Meter $826.86 $2.63 $2.63 $2.70 $3.46 $4.51 $0.00 $0.00 $0

3/4" Meter 13 4 $18.79 $3.29 $3.29 $3.37 $4.33 $5.64 3,256 36,945 $27.52 $171.45 $12,5243/4" Meter 7 5 $18.79 $3.29 $3.29 $3.37 $4.33 $5.64 4,214 15,778 $30.68 $61.95 $6,2943/4" Meter 3 $18.79 $3.29 $3.29 $3.37 $4.33 $5.64 10,000 $49.71 $0.00 $1,7903/4" Meter $18.79 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $03/4" Meter $18.79 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $01" Meter 1 4 $27.90 $3.29 $3.29 $3.37 $4.33 $5.64 1,050 3,770 $31.35 $40.30 $2,3111" Meter 2 $27.90 $3.29 $3.29 $3.37 $4.33 $5.64 11,915 $0.00 $60.67 $1,4561" Meter $27.90 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $01-1/2" Meter $39.71 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $01-1/2" Meter $39.71 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $02" Meter 3 $54.97 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $54.97 $1,9792" Meter $54.97 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $03" Meter $75.17 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $03" Meter $75.17 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $04" Meter $300.65 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $04" Meter $300.65 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $04" Meter $300.65 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $06" Meter $554.37 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $08" Meter $789.27 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $010" Meter $1,033.57 $3.29 $3.29 $3.37 $4.33 $5.64 $0.00 $0.00 $0TOTAL 651 106 $417,060




0




DESCRIPTION AMOUNT DESCRIPTION AMOUNTOperation & Maintenance 1,007,500.00$ Water Sales 1,930,200.00$ Debt Service (including financing reserves) 512,000.00$ Water Taps 61,000.00$ Reserve (Short-lived assets + Operating reserve) 70,400.00$ Water Department Services 5,400.00$ Capital Expenditures (Revenue) 45,800.00$ Developer Agreement Fees -$ Bad Debt Expense 5,400.00$ Interest-FSBA 7,500.00$ Billing Service 114,200.00$ Interest-Misc. 1,000.00$ Interfund Transfers - Payment in Lieu of Taxes (3% of Revenue) 82,000.00$ Fire Protection Fees 24,400.00$ Interfund Transfers - Cost Recovery & Allocation (10% of Revenues) 204,800.00$ Late Fees 13,800.00$ TOTAL 2,042,100$ Misc. Fees 3,800.00$ Capital Expenditures (Depreciation Reserve) -$ TOTAL 2,047,100$








NEW CONNECTIONS 20 2 $19.73 $1.02 $3.35 $3.45 $3.54 $3.66 5,000 5,000 $24.83 $36.49 $6,8353/4" Meter 146 2 $19.73 $1.02 $3.35 $3.45 $3.54 $3.66 1,468 76,449 $21.22 $281.02 $44,7703/4" Meter 121 34 $19.73 $1.02 $3.35 $3.45 $3.54 $3.66 6,275 2,563 $26.13 $28.32 $49,5813/4" Meter 27 7 $19.73 $1.02 $3.35 $3.45 $3.54 $3.66 12,933 35,798 $56.38 $132.31 $28,7083/4" Meter 20 $19.73 $1.02 $3.35 $3.45 $3.54 $3.66 20,969 $84.76 $0.00 $20,7503/4" Meter $19.73 $1.02 $3.35 $3.45 $3.54 $3.66 $0.00 $0.00 $01" Meter 2 1 $29.29 $1.02 $3.35 $3.45 $3.54 $3.66 3,206 1,244 $32.56 $33.46 $1,1911" Meter 2 18 $29.29 $1.02 $3.35 $3.45 $3.54 $3.66 7,796 15,567 $37.25 $71.93 $16,5001" Meter 3 $29.29 $1.02 $3.35 $3.45 $3.54 $3.66 11,524 $0.00 $61.37 $2,2091-1/2" Meter 6 $41.70 $1.02 $3.35 $3.45 $3.54 $3.66 15,394 $0.00 $83.72 $6,0281-1/2" Meter 1 $41.70 $1.02 $3.35 $3.45 $3.54 $3.66 118,317 $0.00 $456.16 $5,4742" Meter 7 $57.71 $1.02 $3.35 $3.45 $3.54 $3.66 26,115 $0.00 $134.87 $11,3292" Meter 6 $57.71 $1.02 $3.35 $3.45 $3.54 $3.66 20,363 $0.00 $113.83 $8,1963" Meter 1 $78.92 $1.02 $3.35 $3.45 $3.54 $3.66 792 $0.00 $81.57 $9793" Meter $78.92 $1.02 $3.35 $3.45 $3.54 $3.66 $0.00 $0.00 $04" Meter 1 $315.65 $1.02 $3.35 $3.45 $3.54 $3.66 134,917 $0.00 $790.84 $9,4904" Meter 1 $315.65 $1.02 $3.35 $3.45 $3.54 $3.66 2,542 $0.00 $324.17 $3,8904" Meter $315.65 $1.02 $3.35 $3.45 $3.54 $3.66 $0.00 $0.00 $06" Meter $582.03 $1.02 $3.35 $3.45 $3.54 $3.66 0 0 $0.00 $0.00 $08" Meter $828.65 $1.02 $3.35 $3.45 $3.54 $3.66 0 0 $0.00 $0.00 $010" Meter $1,085.15 $1.02 $3.35 $3.45 $3.54 $3.66 0 0 $0.00 $0.00 $0TOTAL 3,422 495 $1,492,328

ADF (gpd) 591,298 218,741TOTAL (gpd)

810,039



0






3/4" Meter 141 21 $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 3,854 7,026 $26.43 $35.19 $53,5883/4" Meter 173 11 $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 5,890 13,457 $32.06 $53.20 $73,5703/4" Meter 283 $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 9,429 6,505 $41.84 $0.00 $142,0723/4" Meter $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03/4" Meter $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03/4" Meter $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03/4" Meter (CCUA) $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03/4" Meter $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03/4" Meter $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03/4" Meter $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03/4" Meter $15.78 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $01" Meter 27 7 $23.43 $2.76 $2.76 $2.83 $3.63 $4.74 13,220 1,050 $60.18 $26.33 $21,7111" Meter 3 15 $23.43 $2.76 $2.76 $2.83 $3.63 $4.74 5,417 26,077 $38.40 $112.18 $21,5751" Meter $23.43 $2.76 $2.76 $2.83 $3.63 $4.74 14,340 $0.00 $0.00 $01-1/2" Meter 3 $33.36 $2.76 $2.76 $2.83 $3.63 $4.74 7,700 $0.00 $54.63 $1,9671-1/2" Meter 6 $33.36 $2.76 $2.76 $2.83 $3.63 $4.74 42,533 $0.00 $200.06 $14,4041-1/2" Meter $33.36 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $01-1/2" Meter $33.36 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $02" Meter 16 $46.17 $2.76 $2.76 $2.83 $3.63 $4.74 12,974 $0.00 $82.22 $15,7872" Meter 4 $46.17 $2.76 $2.76 $2.83 $3.63 $4.74 81,000 $0.00 $395.09 $18,9642" Meter 3 $46.17 $2.76 $2.76 $2.83 $3.63 $4.74 221,000 $0.00 $1,058.28 $38,0982" Meter $46.17 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $02" Meter (CCUA) $46.17 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.002" Meter (CCUA) $46.17 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.002" Meter (CCUA) $46.17 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03" Meter 2 $63.13 $2.76 $2.76 $2.83 $3.63 $4.74 68,700 $0.00 $353.79 $8,4913" Meter $63.13 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $03" Meter $63.13 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $04" Meter $252.52 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $04" Meter $252.52 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $06" Meter $465.63 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $08" Meter $662.92 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $010" Meter $868.12 $2.76 $2.76 $2.83 $3.63 $4.74 $0.00 $0.00 $0





0




DESCRIPTION AMOUNT DESCRIPTION AMOUNTOperation & Maintenance 1,032,700.00$ Water Sales 2,033,100.00$ Debt Service (including financing reserves) 512,000.00$ Water Taps 62,500.00$ Reserve (Short-lived assets + Operating reserve) 72,200.00$ Water Department Services 5,500.00$ Capital Expenditures (Revenue) 46,900.00$ Developer Agreement Fees -$ Bad Debt Expense 5,500.00$ Interest-FSBA 7,500.00$ Billing Service 117,100.00$ Interest-Misc. 1,000.00$ Interfund Transfers - Payment in Lieu of Taxes (3% of Revenue) 86,000.00$ Fire Protection Fees 25,000.00$ Interfund Transfers - Cost Recovery & Allocation (10% of Revenues) 215,300.00$ Late Fees 14,100.00$ TOTAL 2,087,700$ Misc. Fees 3,900.00$ Capital Expenditures (Depreciation Reserve) -$ TOTAL 2,152,600$








NEW CONNECTIONS 22 3 $20.71 $1.07 $3.52 $3.63 $3.72 $3.84 5,000 5,000 $26.07 $38.31 $8,2623/4" Meter 146 2 $20.71 $1.07 $3.52 $3.63 $3.72 $3.84 1,468 76,449 $22.29 $295.07 $47,0103/4" Meter 121 34 $20.71 $1.07 $3.52 $3.63 $3.72 $3.84 6,275 2,563 $27.44 $29.73 $52,0623/4" Meter 27 7 $20.71 $1.07 $3.52 $3.63 $3.72 $3.84 12,933 35,798 $59.20 $138.93 $30,1443/4" Meter 20 $20.71 $1.07 $3.52 $3.63 $3.72 $3.84 20,969 $89.00 $0.00 $21,7883/4" Meter $20.71 $1.07 $3.52 $3.63 $3.72 $3.84 $0.00 $0.00 $01" Meter 2 1 $30.76 $1.07 $3.52 $3.63 $3.72 $3.84 3,206 1,244 $34.19 $35.13 $1,2511" Meter 2 18 $30.76 $1.07 $3.52 $3.63 $3.72 $3.84 7,796 15,567 $39.11 $75.53 $17,3251" Meter 3 $30.76 $1.07 $3.52 $3.63 $3.72 $3.84 11,524 $0.00 $64.44 $2,3201-1/2" Meter 6 $43.78 $1.07 $3.52 $3.63 $3.72 $3.84 15,394 $0.00 $87.91 $6,3301-1/2" Meter 1 $43.78 $1.07 $3.52 $3.63 $3.72 $3.84 118,317 $0.00 $478.97 $5,7482" Meter 7 $60.60 $1.07 $3.52 $3.63 $3.72 $3.84 26,115 $0.00 $141.62 $11,8962" Meter 6 $60.60 $1.07 $3.52 $3.63 $3.72 $3.84 20,363 $0.00 $119.52 $8,6063" Meter 1 $82.87 $1.07 $3.52 $3.63 $3.72 $3.84 792 $0.00 $85.66 $1,0283" Meter $82.87 $1.07 $3.52 $3.63 $3.72 $3.84 $0.00 $0.00 $04" Meter 1 $331.45 $1.07 $3.52 $3.63 $3.72 $3.84 134,917 $0.00 $830.40 $9,9654" Meter 1 $331.45 $1.07 $3.52 $3.63 $3.72 $3.84 2,542 $0.00 $340.40 $4,0854" Meter $331.45 $1.07 $3.52 $3.63 $3.72 $3.84 $0.00 $0.00 $06" Meter $611.17 $1.07 $3.52 $3.63 $3.72 $3.84 0 0 $0.00 $0.00 $08" Meter $870.14 $1.07 $3.52 $3.63 $3.72 $3.84 0 0 $0.00 $0.00 $010" Meter $1,139.47 $1.07 $3.52 $3.63 $3.72 $3.84 0 0 $0.00 $0.00 $0TOTAL 3,439 498 $1,573,278

ADF (gpd) 594,092 219,235TOTAL (gpd)



0






3/4" Meter 141 21 $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 3,854 7,026 $27.75 $36.96 $56,2703/4" Meter 173 11 $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 5,890 13,457 $33.66 $55.86 $77,2513/4" Meter 283 $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 9,429 6,505 $43.93 $0.00 $149,1793/4" Meter $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03/4" Meter $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03/4" Meter $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03/4" Meter (CCUA) $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03/4" Meter $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03/4" Meter $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03/4" Meter $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03/4" Meter $16.57 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $01" Meter 27 7 $24.60 $2.90 $2.90 $2.97 $3.82 $4.97 13,220 1,050 $63.19 $27.65 $22,7971" Meter 3 15 $24.60 $2.90 $2.90 $2.97 $3.82 $4.97 5,417 26,077 $40.32 $117.79 $22,6541" Meter $24.60 $2.90 $2.90 $2.97 $3.82 $4.97 14,340 $0.00 $0.00 $01-1/2" Meter 3 $35.03 $2.90 $2.90 $2.97 $3.82 $4.97 7,700 $0.00 $57.37 $2,0651-1/2" Meter 6 $35.03 $2.90 $2.90 $2.97 $3.82 $4.97 42,533 $0.00 $210.07 $15,1251-1/2" Meter $35.03 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $01-1/2" Meter $35.03 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $02" Meter 16 $48.48 $2.90 $2.90 $2.97 $3.82 $4.97 12,974 $0.00 $86.34 $16,5772" Meter 4 $48.48 $2.90 $2.90 $2.97 $3.82 $4.97 81,000 $0.00 $414.85 $19,9132" Meter 3 $48.48 $2.90 $2.90 $2.97 $3.82 $4.97 221,000 $0.00 $1,111.20 $40,0032" Meter $48.48 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $02" Meter (CCUA) $48.48 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $02" Meter (CCUA) $48.48 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $02" Meter (CCUA) $48.48 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03" Meter 2 $66.29 $2.90 $2.90 $2.97 $3.82 $4.97 68,700 $0.00 $371.48 $8,9163" Meter $66.29 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $03" Meter $66.29 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $04" Meter $265.16 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $04" Meter $265.16 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $06" Meter $488.94 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $08" Meter $696.11 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $010" Meter $911.58 $2.90 $2.90 $2.97 $3.82 $4.97 $0.00 $0.00 $0





0


Attachment B DEP SRF Water System ImprovementsSRF Loan Application (Design Phase) City of Green Cove Springs, FloridaMittauer & Associates, Inc. Project No. 8905-53-1

FY ‘17 and ‘18 Audits

Connie Butler, Mayor Steven Kelley, Vice Mayor

Mitch Timberlake Pamela Lewis

Van Royal

Steve Kennedy

Kim Thomas Marlena Guthrie

Government Auditing Standards

Management’s Responsibility for the Financial Statements

Auditors’ Responsibility


Opinions

Other Matters

Change in Accounting Principle

Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions

Required Supplementary Information

Other Information

Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

Continued)

(Concluded)

government-wide financial statements

Statement of Net Position (the “Unrestricted Net Position”)

Statement of Activities

(governmental activities)(business-type

activities).

fund

(Continued)

(Concluded)

Governmental funds (1) Governmental fundsgovernmental activities

near-term inflows and outflows of spendable resources

near-term

governmental fundsgovernmental activities

near-term

governmental fundsgovernmental activities

Proprietary funds— proprietary fundsbusiness-type activities

Fiduciary funds—

Notes to the Financial Statements—

Government-wide Financial Analysis—

(1)Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. The focus is now on Major funds, rather than fund type.

(Continued)

(Continued)

(Concluded)

(Continued)

Economic Condition

Increase/Decrease in Council-approved rates

(Continued)

(Concluded)

(Concluded)

Changing Patterns in Intergovernmental and Grant Revenue

Contribution from the Electric, Water and Sewer, and Solid Waste Funds

Market Impacts on Investment Income

Introduction of New Programs

Authorized Personnel

Personnel Costs (cost of living, merit, and market adjustment)

Inflation

(Continued)

(Concluded)

(Concluded)

(Continued)

(Continued)

(Concluded)

In (000s)

(Concluded)

General Fun

Disaster Fun

Electric Utility Fund

Water Utility Fund

Sewer Utility Fund

Solid Waste Utility Fund

Storm Water Utility Fund

Pension Trust Fund

Special Revenue Funds

Capital Project Funds

Internal Service Fund—

Nonspendable

Restricted

Committed

Assigned

Unassigned

Florida Security for Public Deposits Act

Certain External Investment Pools and Pool Participants

Municipal Police Officers’ Retirement Trust Fund Investment Portfolio

Level 1: Level 2: Level 3:

Interest Rate Risk:

Credit Risk:

Concentration of Credit Risk:

Custodial Credit Risk

Foreign Currency Risk

Deferred outflows/inflows related to pensions:

Actuarial assumptions:

Long-term expected rate of return:

Sensitivity of the net pension liability to changes in the discount rate:

Discount rate:

Changes in net pension liability:


Money-weighted rate of return:

Sensitivity of the total OPEB liability to changes in the discount rate:

Sensitivity of the total OPEB liability to changes in the healthcare cost trend rate:

Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions;

Accounting for Postemployment Benefits Other Than PensionsOPEB Measurements by Agent Employers and Agent Multiple-

Employer Plan, for OPEB

Changes of assumptions.

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY – FRS/HIS

SEPTEMBER 30, 2018 (UNAUDITED)

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*10 years of data will be presented as it becomes available

2018 2017 2016 2015

Florida Retirement System (FRS) Proportion of the net pension liability (NPL) 0.007796896% 0.007345438% 0.008451778% 0.007974291% Proportionate share of the NPL $ 2,348,466 $ 2,172,731 $ 2,134,081 $ 1,029,986 Covered payroll 2,563,966 2,330,206 2,484,644 2,386,450 Proportionate share of the NPL as percentage of covered

payroll 91.60% 93.24% 85.89% 43.16% Plan fiduciary net position as a percentage of the NPL 84.26% 83.89% 84.88% 92.00%

Health Insurance Subsidy Program (HIS)

Proportion of the net pension liability (NPL) 0.007848355% 0.007194699% 0.008436522% 0.007652351% Proportionate share of the NPL $ 830,679 $ 769,290 $ 983,242 $ 780,419 Covered payroll 2,563,966 2,330,206 2,484,644 2,386,450 Proportionate share of the NPL as percentage of covered

payroll 32.40% 33.01% 39.57% 32.70% Plan fiduciary net position as a percentage of the NPL 2.15% 1.64% 0.97% 0.50%

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS – FRS/HIS


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For the Plan Year ended June 30, 2018 2017 2016 2015

Florida Retirement System (FRS)

Contractually required contribution $ 222,205 $ 207,762 $ 206,110 $ 194,420 Contributions in relation to contractually required contribution 222,205 207,762 206,110 206,890

Contribution deficiency (excess) $ - $ - $ - $ (12,470)

Covered payroll $ 2,563,966 $ 2,330,206 $ 2,484,644 $ 2,386,450 Contributions as percentage of covered payroll 8.67% 8.92% 8.30% 8.15%


Contractually required contribution $ 42,562 $ 38,681 $ 43,243 $ 29,252 Contributions in relation to contractually required contribution 42,562 38,681 43,243 32,711

Contribution deficiency (excess) $ - $ - $ - $ (3,459)

Covered payroll $ 2,563,966 $ 2,330,206 $ 2,484,644 $ 2,386,450 Contributions as percentage of covered payroll 1.66% 1.66% 1.74% 1.23%

Financial Statements:

Unmodified

Federal Awards:

Unmodified

Office of Management and Budget (OMB) Compliance Supplement

Management’s Responsibility


Government Auditing Standards,


Opinion on Each Major Federal Program

deficiency in internal control over compliance

material weakness in internal control over compliance

significant deficiency in internal control over compliance

GOVERNMENT AUDITING STANDARDS


Internal Control over Financial Reporting

deficiency in internal control

material weakness

significant deficiency

Compliance and Other Matters

Government Auditing Standards.


Government Auditing StandardsU.S. Code of Federal

Regulations Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards


AICPA Professional Standards

Local Government Investment Policies,

Local Government Investment Policies,

CITY OF GREEN COVE SPRINGS, FLORIDA FINANCIAL STATEMENTS

SEPTEMBER 30, 2017

CITY COUNCIL

Mitch Timberlake, Mayor Constance Butler, Vice Mayor

Steven Kelley Pamela Lewis

Van Royal

CITY MANAGER

Danielle Judd

CITY CLERK FINANCE DIRECTOR Julie Clevinger Marlena Guthrie

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CITY OF GREEN COVE SPRINGS TABLE OF CONTENTS SEPTEMBER 30, 2017

Independent Auditors’ Report .............................................................................................................. 1 - 3

Management’s Discussion and Analysis ............................................................................................ 4 - 14

Basic Financial Statements Government-wide Financial Statements Statement of Net Position .................................................................................................................. 16 Statement of Activities ...................................................................................................................... 17 Governmental Fund Financial Statements Balance Sheet—Governmental Funds .............................................................................................. 18 Reconciliation of the Balance Sheet − Governmental Funds to the Statement of Net Position ........ 19 Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds ....... 20 Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................... 21 Statement of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – General Fund ................................................................................................ 22 Statement of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Disaster Fund ................................................................................................ 23 Statement of Net Position – Proprietary Funds ................................................................................. 24 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ............................................................................................................................. 25 Statement of Cash Flows – Proprietary Funds .................................................................................. 26 Statement of Fiduciary Net Position – Pension Trust Fund .............................................................. 27 Statement of Changes in Fiduciary Net Position –Pension Trust Fund ............................................ 28 Notes to Financial Statements ......................................................................................................... 29 - 54 Required Supplementary Information Schedule of Funding Progress – OPEB .................................................................................................. 55 Schedule of Contributions – OPEB ........................................................................................................ 56 Schedule of Changes in Net Pension Liability and Related Ratios – Police Pension ............................ 57 Schedule of Contributions – Police Pension .......................................................................................... 58 Schedule of Investment Returns – Police Pension ................................................................................. 59 Schedule of Proportionate Share of Net Pension Liability – FRS/HIS .................................................. 60 Schedule of Contributions – FRS/HIS ................................................................................................... 61 Supplementary Information Combining Balance Sheet – Nonmajor Governmental Funds ............................................................... 63 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds .............................................................................. 64 Single Audit and Other Reports

Schedule of Expenditures of Federal Awards ........................................................................................ 65 Notes to the Schedule of Expenditures of Federal Awards .................................................................... 66 Schedule of Findings and Questioned Costs .......................................................................................... 67 Independent Auditors’ Report on Compliance for Each Major Federal Program and on Internal Control

over Compliance in Accordance with the Uniform Guidance ..................................................... 69 - 70 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements in Accordance with Government Auditing Standards .................................................................................................. 71 - 72 Independent Auditors’ Management Letter Required by Chapter 10.550, Rules of the State of Florida Office of the Auditor General ........................................................ 73 - 74 Independent Accountants’ Examination Report............................................................................... ...... 75 Management’s Response to Findings…........................................................................................... ...... 76

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INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor, City Council, and City Manager, City of Green Cove Springs, Florida:

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Green Cove Springs, Florida (the City), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

The City’s 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.


Our responsibility is to express opinions on these financial statements based on our audit. 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 evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2017, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information, as listed in the table of contents, 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’s financial statements as a whole. The combining nonmajor fund financial statements and schedule of expenditures of federal awards are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining nonmajor fund financial statements and schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor fund financial statements and schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated April 30, 2018, on our consideration of the City’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, 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’s internal control over financial reporting and compliance.

Daytona Beach, Florida April 30, 2018

CITY OF GREEN COVE SPRINGS, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS

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The City of Green Cove Springs’ (the City) Management’s Discussion and Analysis (MD&A) is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City’s financial activity, (c) identify changes in the City’s financial position (its ability to address the next and subsequent year challenges), (d) identify any material deviations from the financial plan (the approved budget), and (e) identify individual fund issues or concerns. Since the MD&A is designed to focus on the current year’s activities, resulting changes, and currently known facts, please read it in conjunction with the City’s financial statements.

HIGHLIGHTS Financial Highlights • The City’s assets exceeded its liabilities at September 30, 2017, by $56.4 million. Unrestricted net

position was $9.1 million at September 30, 2017. • The City’s net position increased by $2,418,883 or 4.48%. The governmental net position increased

$881,710 or 3.51% and the business-type net position increased by $1,537,173 or 5.34%. • The business-type activities revenues, including capital grants and investment revenue, increased by

$1.1 million or 6.75% and the net results from activities increased by $664,147 or 76%.

• The governmental net position increased due to an increase in capital grants and contributions.

• The business-type net position increased mainly due to the stormwater and wastewater capital grants and contributions received during fiscal year 2017.

City Highlights • The City spent approximately $2.5 million on capital improvements, of which $2.1 million was for

the Historic Spring Park project. The City also purchased approximately $28K in equipment for the Equipment and Maintenance Fund during the fiscal year. $30K was spent on the Augusta Savage Community Center Library Building, $71K was spent on Clay Street Stormwater repairs, $20K was spent on sidewalks throughout the City, $21K was spent on a Ford Truck in the Right of Way Department. $142K was spent replacing vehicles and equipment within the Public Works Department.

• During this fiscal year, the Electric Department spent $156K on Line Extensions for the Asphalt

Plant. $60K was spent on 27kV Electric Reclosers. $9K was spent on Electric GOAB Switches. Additional transformers were also purchased during the year for $3K. $42K was expended for other electric transmission improvements. $606K was spent on the electric 4kV project.

• The Water Department continued the electronic meter replacement program and spent $102K during

the fiscal year. $51K was spent on a Mini Hydraulic Excavator. $9K was spent on the Interconnect Control Valve. $4K was spent on the Water Main Replacement at US 17 and S.R. 16.

• The Wastewater Department expended $533K for the Wastewater system improvements pre-

construction phase and $311K for the North Grid Reclaimed Water System. $9K was spent on lift station pumps.


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(Continued) City Highlights (Concluded)

• The Solid Waste Department entered into a lease/purchase agreement in the amount of $166K for a

2018 Freightliner M2 106 Recycle Truck.

• The Stormwater Department expended $613K for stormwater repairs on Citizen Street and $15K for stormwater repairs on MLK Boulevard.

• $11K was used to purchase new Neptune Data Collectors and a laptop for the Customer Service

Department. Overview of Financial Statements The MD&A is intended to serve as an introduction to the City’s Basic Financial Statements. The City’s Basic Financial Statements consist of three components: (1) Government-wide Financial Statements; (2) Fund Balance Statements; and (3) Notes to Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a timely manner similar to a private-sector business. The focus of the Statement of Net Position (the “Unrestricted Net Position”) is designed to be similar to a bottom line for the City and its governmental and business-type activities. This statement combines and consolidates the governmental fund’s current financial resources, short-term spendable resources with capital assets, and long-term obligations. Over time, increases and 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 during the most recent fiscal 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 periods (e.g., uncollected taxes and earned but unused sick leave.) This statement is intended to summarize and simplify the user’s analysis of the cost of various governmental services and/or subsidy to various business-type activities. Both the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, physical environment, transportation, economic environment and culture, and recreation. The business-type activities include electric, water and wastewater, stormwater and solid waste collection. The business-type activities reflect private sector type operations where the fee for service typically covers all or most of the cost of operation including depreciation. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three (3) categories: governmental funds, proprietary funds, and fiduciary funds.


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(Continued)

Fund Financial Statements (Concluded) Governmental funds (1)—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 on balances of spendable resources available at the end of the fiscal 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 government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Proprietary funds—The City maintains five (5) proprietary funds. These funds and one Internal Service Fund “Customer Service” are used to report the same functions presented as business-type activities in the government-wide financial statements. The City accounts for five (5) activities in the enterprise fund: electric power distribution, water, wastewater, stormwater, and solid waste collection. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the five (5) utility funds, which are considered to be major funds of the City. 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 accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the Financial Statements—The notes provide additional information that is essential to a full understanding of the data provided in the government-wide fund financial statements. The Notes to the Financial Statements can be found on pages 29 through 54 of this report. Government-wide Financial Analysis—Net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $56.2 million or a 4.26% increase at the close of the fiscal year ended September 30, 2017. A portion of the City’s net position, $2,819,739, represents resources that are subject to external restrictions on how they may be used. Governmental activities had $1,358,350 in restricted net position and the business-type activities had $1,461,389 in restricted net position at September 30, 2017. (1) Traditional users of governmental financial statements will find the Fund Financial Statements presentation

more familiar. The focus is now on Major funds, rather than fund type.


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(Continued)

GOVERNMENT-WIDE STATEMENT Statement of Net Position The following reflects the condensed Statement of Net Position compared to the prior year.

Statement of Net PositionAs of September 30, 2017 (In 000s)

Governmental Business-type Total Primary Total %Activities Activities Government Change

2016 2017 2016 2017 2016 2017 Current and Other Assets $ 4,159 $ 4,121 $ 14,013 $ 15,070 $ 18,172 $ 19,191 5.61%Capital Assets 25,361 26,926 19,746 20,976 45,107 47,902 6.20%Total Assets $ 29,520 $ 31,047 $ 33,759 $ 36,046 $ 63,279 $ 67,093 6.03% Deferred Outflows $ 1,549 $ 1,324 $ 435 $ 439 $ 1,984 $ 1,763 -11.14% Current Liabilities $ 736 $ 1,127 $ 2,664 $ 3,519 $ 3,400 $ 4,646 36.65%Long-term Liabilities 4,997 4,719 2,702 2,480 7,699 7,199 -6.49%Total Liabilities $ 5,733 $ 5,846 $ 5,366 $ 5,999 $ 11,099 $ 11,845 6.72% Deferred Inflows $ 213 $ 520 $ 18 $ 139 $ 231

$ 659 185.28%

Net Position: Net Investment in Capital Assets $ 22,861 $ 24,620 $ 17,942 $ 19,336 $ 40,803 $ 43,956 7.73%Restricted 1,115 1,876 1,263 1,461 2,378 3,337 40.33%Unrestricted 1,147 (491) 9,605 9,550 10,752 9,059 -15.75%

$ 25,123 $ 26,005 $ 28,810 $ 30,347 $ 53,933 $ 56,352Total Net Position 4.49% Normal Impacts There are six (6) basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net Results of Activities—which will impact (increase/decrease) current assets and unrestricted net position. Borrowing for Capital—which will increase current assets and long-term debt. Spending Borrowed Proceeds on New Capital—which will reduce current assets and increase capital assets.


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(Continued) Normal Impacts (Concluded) Spending of Non-Borrowed Current Assets on New Capital—which will: (a) reduce current assets and increase capital assets; and (b) reduce unrestricted net position and increase net investment in capital assets. Principal Payment on Debt—which will: (a) reduce current assets and reduce long-term debt; and (b) reduce unrestricted net position and increase net investment in capital assets. Reduction of Capital Assets through Depreciation—which will reduce capital assets and net investment in capital assets. Statement of Activities The following schedule compares the revenues and expenses for the current and previous fiscal year.

Change in Net Position As of September 30, 2017 (In 000s)

Governmental Business-type Total Primary Total %

Activities Activities Government Change2016 2017 2016 2017 2016 2017

REVENUES Charges for Services $ 1,176 $ 1,253 $ 16,647 $ 16,603 $ 17,823 17,856 .185% Operating Grants and Contributions 446 1,039 0 0 446 1,018

128%

Capital Grants and Contributions 226 772 41 935 267 1,707

539%

General Revenues: Property Taxes 1,195 1,299 0 0 1,195 1,299 8.70% State Revenue Sharing 214 211 0 0 214 211 -1.40% Sales and Use Tax 376 414 0 0 376 414 10.11% Discretionary Sales Surtax 804 888 0 0 804 888

10.45%

Investment Income 7 17 22 48 29 65 124% Business and Utility Taxes 505 566 0 0 505 566

12.08%

Sale of Fixed Assets 0 0 0 0 0 0 0.00% Other General Revenues 100 29 133 393 233 422

81.12%

Total Revenues $ 5,049 $ 6,488 $ 16,843 $17,979 $ 21,892 $ 24,467 11.76%


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(Continued)

Governmental Business-type Total Primary Total %Activities Activities Government Change

2016 2017 2016 2017 2016 2017 EXPENSES Governmental Activities:

General Government $ 1,516 $ 2,068 $ 0 $ 0 $ 1,516 $ 2,068

36.41%

Public Safety 2,908 2,560 0 0 2,908 2,560 -11.97% Transportation 1,303 1,280 0 0 1,303 1,280 -1.77% Physical Environment 190 157 0 0 190 157

-17.37%

Culture and Recreation 419 441 0 0 419 441

5.25%

Interest on Long-term Debt 72 46 0 0 72 46

-36.11%

Business-type Activities:

Electric 0 0 10,758 11,288 10,758 11,288 4.93% Water 0 0 1,371 1,558 1,371 1,558 13.64% Wastewater 0 0 1,686 1,829 1,686 1,829 8.48% Stormwater 0 0 128 139 128 139 8.59% Solid Waste 0 0 634 683 634 683 7.73%

Total Expenses $ 6,408 $ 6,552 $14,577 $15,497 $ 20,985 $ 22,049 5.07% Excess of Revenues Over Expenses $ (1,359) $ (64) $ 2,266 $ 2,482 $ 907 $ 2,418

167%

Transfers 1,393 946 (1,393) (946) 0 0

NET INCREASE $ 34 $ 882 $ 873 $ 1,536 $ 907 $ 2,418 167% Normal Impacts There are nine (9) basic impacts on revenues and expenses as reflected below. Revenues Economic Condition—which can reflect a declining, stable or growing economic environment and has a substantial impact on ad valorem, sales, gas, or other tax revenue as well as public spending habits for building permits and utility user fees. Increase/Decrease in Council-approved rates—while certain tax rates are set by statute, the City Council has significant authority to impose and periodically increase/decrease rates (electric, water, wastewater, solid waste, permitting, impact fee, recreation user fees, etc.)


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(Continued) Normal Impacts (Concluded) Revenues (Concluded) Changing Patterns in Intergovernmental and Grant Revenue—(both recurring and nonrecurring) certain recurring rates (state revenue sharing, grants, etc.) may experience significant changes periodically while nonrecurring (or one-time) grants are less predictable and often distorting in their impact on year-to-year comparisons. Contribution from the Electric, Water and Sewer, and Solid Waste Funds—the City owns and operates the Electric, Water, Wastewater, and Solid Waste Utility systems and provides administrative and support services for these utilities. In return, the City receives payments from the utilities. Therefore, the ongoing competitiveness and vitality of the utilities are important to the City’s well-being. Market Impacts on Investment Income—due to varying maturities on the City’s investments and the varying nature of the market in general, the City investment income may fluctuate from year to year. During 2017, investment income increased 124% due to market conditions. Expenses Introduction of New Programs—within the functional expense categories (General Government, Public Safety, and Transportation) individual programs may be added or deleted to meet changing community needs. Authorized Personnel—changes in service demand may cause the Council to increase/decrease authorized staffing. Staffing costs (salary and related benefits) represent 31.60% of the City’s total net operating budget. Personnel Costs (cost of living, merit, and market adjustment)—the ability to attract and retain human and intellectual resources requires the City to strive to approach a competitive salary range position in the marketplace. A classification and compensation study was completed for the City by Cody & Associates, Inc. It was presented and received by the Council on May 20, 2014. Implementation of the classification and compensation study began in fiscal year 2015 and was fully implemented in fiscal year 2016. Inflation—the City is a major consumer of certain commodities such as chemicals, supplies, fuels, and parts. Some functions may experience unusual commodity-specific increases. Current Year Impacts Revenues Economic reports indicate the local, state, and national economy is showing signs of recovery, as is also evidenced by the increase in sales taxes and shared revenues collected. The City’s property tax revenue increased by 8.68% for fiscal year 2017. The City’s millage rate for this fiscal year is 3.60 mils. The passing of Amendment 1, Property Tax Reform, limits governments in their ability to collect additional ad valorem tax. In government activities, total revenues increased primarily due to an increase in property tax revenue, sales tax revenue, shared state revenues, operating grants and capital grants. General fund revenues, including transfers-in, increased from the previous year with an overall increase of 13.5%.


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(Continued)

Current Year Impacts (Concluded) Revenues (Concluded) Interest revenues are increasing due to increasing market rates. The business-type activities (Proprietary Fund) revenues increased by approximately 6.75%, due mainly to an increase in stormwater and wastewater capital grants and contributions. Expenses The Governmental activities expenses increased by approximately 2.23%, primarily due to an increase in general government expenses. The primary increase in the business-type activities is a result of an increase in contractual services for electric. The business-type activities expenses, excluding transfers, increased by 6.31%. Proprietary Funds The Utility Fund accounting for the Electric, Water, Wastewater, Stormwater, and Solid Waste activities had an increase in net position of $873,026. Operating revenues decreased by $44,841 and operating expenses increased by $919,924. Utility fund operating expenses (excluding depreciation) increased by 6.07%. Budgetary Highlights The most significant budget adjustments were as follows: General Fund • The budget was increased by $116,550 in Compensated Absences Reserve to fund employees’ payouts

in the General Fund for vacation and attendance incentive pay payouts.

Business-type Funds • The budget was increased by $37,857 in Compensated Absences Reserve to fund employees’ payouts

in the Utility Funds for vacation and attendance incentive pay payouts. • The Electric Utility Fund Budget was increased by $313,843 due to increased Electric revenue. Special Revenue Funds • Increased Building Fund revenue of $130,273 for unanticipated revenues and expenditures due to

increased building permit activity for Magnolia West and Magnolia Phase VIII. Capital Improvement Funds • Increased Spring Park Capital Improvement Fund by $588,122 to reflect unanticipated revenues and

expenditures.


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(Continued)

CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets As of year-end, the City had $47,901,935 invested in a variety of capital assets, as reflected in the following schedule, which represents a net increase (addition, deductions, and depreciation) of $2,794,891 or 6.20% from the end of last year. Capital Asset Activity is further outlined in the Notes to Financial Statements, Note No. 4.

Net of Depreciation

(In 000s)

Governmental

Activities Business-type

Activities Total Primary Government

2016 2017 2016 2017 2016 2017 Land and Land Rights $ 8,014 $ 8,016 $ 227 $ 227 $ 8,241 $ 8,243 Construction in Progress 939 0 80 925 1,019 925 Buildings and Plants 10,357 10,408 43,884 44,340 54,241 54,748 Improvements Other than Buildings 3,544 6,678 0 0 3,544 6,678 Equipment 2,807 2,994 0 0 2,807 2,994 Infrastructure 9,216 9,236 4,792 6,153 14,008 15,389 Less: Accumulated Depreciation (9,517) (10,406) (29,237) (30,669) (38,754) (41,075) Total $ 25,360 $ 26,926 $ 19,746 $ 20,976 $ 45,106 $ 47,902

The following reconciliation summarizes the change in Capital Assets.

Change in Capital Assets

(In 000s)

Governmental

Activities Business-type

Activities Total Primary

Government 2016 2017 2016 2017 2016 2017

Beginning Balance, Net $ 25,174 $ 25,361

$ 19,577 $ 19,746

$ 44,751 $ 45,107

Additions 1,102 5,548 1,884 3,196 2,986 8,744 Retirement Other (177) (3,094) (421) (534) (598) (3,628) Depreciation (739) (889) (1,294) (1,432) (2,033) (2,321) Ending Balance, Net $ 25,360 $ 26,926 $ 19,746 $ 20,976 $ 45,106 $ 47,902


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(Continued) Capital Assets (Concluded) This year’s major additions were:

Governmental Activities: In (000s) Augusta Savage Library Building $ 30 Clay Street Stormwater Repairs 71 City Hall A/C Unit 5 Spring Park Project 2,128 Police Vehicles 4 Streets Vehicles 21 Building Dept. Permit Software 13 Sidewalks Throughout City 20 Public Works Vehicles & Equipment 142 Computer Equipment 16 Time Card Software 7 Garage Equipment 28 Business-type Activities: Electric Magnolia 3rd Feed Easement Survey 7 Electric Line Extension – Asphalt Plant 156 Electric Reclosers 27kV 60 Electric GOAB Switches 9 Electric 4kV Project 606 Water Meter Replacement 102 Water Main Replacement US 17 & S.R. 16 4 Water Mini Hydraulic Excavator 51 Wastewater Lift Station Pumps 9 Wastewater System Improvements Pre-Construction Phase 533 North Grid Reclaimed Water System 311 Sanitation Recycling Truck 166 Stormwater Citizen Street Project 613 Stormwater MLK Blvd. Project 15 Water Main Replacement US 17 & S.R. 16 4 Customer Service Meter Reader Neptune Data Collectors 9


- 14 -

(Concluded)

Debt Outstanding As of year-end, the City had the following debt. The City Debt is further outlined in the Notes to the Financial Statements, Note No. 7.

Outstanding Debt, at Year-end

(In 000s)

Totals 2017 2016

Governmental: Compensated Absences $ 540 $ 500 Net OPEB Obligation 299 268 Sales Tax Revenue Note Series 2013 0

0

Series 2016A 1,334 1,470 Series 2016B 972 1,030 Net Pension Liability 1,935 2,072 Sub-Total – Governmental 5,080 5,340 Business-type: Utility Notes 1,108 1,331 Equipment Notes 533 474 Compensated Absences 354 330 Net OPEB Obligation 132 118 Net Pension Liability 1,007 1,045 Sub-Total – Business-Type 3,134 3,298 Total $ 8,214 $ 8,638

ECONOMIC FACTORS

The State of Florida, by Constitution, does not have a state personal income tax and, therefore, the state operates primarily using sales, gasoline, and corporate income taxes. Local governments primarily rely on property and a limited array of permitted other taxes (sales, gasoline, utilities services, local business, etc.) and franchise fees for their governmental activities. There are a limited number of state-shared revenues and recurring and nonrecurring (one-time) grants from both the state and federal governments. For the business-type and certain governmental activities, the user (of services) pays a related fee (or charge) associated therewith.

FINANCIAL CONTACT The City’s financial statements are designed to present users (citizens, taxpayers, customers, investors, and creditors) with a general overview of the City’s finances and to demonstrate the City’s accountability. If you have any questions about the report or need additional financial information, contact the City’s Finance Director at City Hall at 321 Walnut Street, Green Cove Springs, Florida 32043, telephone (904) 297-7500.

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BASIC FINANCIAL STATEMENTS

These basic financial statements contain Government-wide Financial Statements, Fund Financial Statements and Notes to the Financial Statements.

CITY OF GREEN COVE SPRINGSSTATEMENT OF NET POSITION

Governmental Business-typeActivities Activities Total

ASSETSEquity in pooled cash 157,503$ 6,364,720$ 6,522,223$ Investments 1,538,643 4,436,715 5,975,358 Receivables, net 48,530 1,974,589 2,023,119 Internal balances 447,710 (447,710) - Due from other governments 1,128,720 821,412 1,950,132 Inventories 38,048 459,262 497,310 Prepaids 104,677 - 104,677 Restricted assets:

Equity in pooled cash 60,903 1,378,206 1,439,109 Investments - 83,183 83,183 Net pension asset 596,484 - 596,484

Capital assets:Capital assets, not being depreciated 8,015,952 1,151,651 9,167,603 Other capital assets, net of depreciation 18,910,054 19,824,278 38,734,332

Total assets 31,047,224$ 36,046,306$ 67,093,530$

DEFERRED OUTFLOWS OF RESOURCESDeferred outflows related to pensions 1,324,460$ 439,218$ 1,763,678$

LIABILITIESAccounts payable and accrued liabilities 755,395$ 1,759,776$ 2,515,171$ Customer deposits - 670,334 670,334 Unearned revenue - 431,351 431,351 Accrued interest payable 10,993 5,176 16,169 Noncurrent liabilities:

Due within one year:Bonds, notes, and capital leases payable 199,000 546,561 745,561 Compensated absences 161,977 106,079 268,056

Due in more than one year:Bonds, notes, and capital leases payable 2,107,000 1,093,678 3,200,678 Compensated absences 377,947 247,517 625,464

Net OPEB obligation 298,911 131,823 430,734 Net pension liability 1,935,216 1,006,805 2,942,021

Total liabilities 5,846,439$ 5,999,100$ 11,845,539$

DEFERRED INFLOWS OF RESOURCESDeferred inflows related to pensions 520,581$ 139,343$ 659,924$

NET POSITIONNet investment in capital assets 24,620,006$ 19,335,690$ 43,955,696$ Restricted for:

Public safety 702,322 - 702,322 Pensions 596,484 - 596,484 Disaster - - - Debt service 70,379 83,463 153,842 Capital projects 507,038 - 507,038 System Improvements - 1,377,926 1,377,926

Unrestricted (491,565) 9,550,002 9,058,437 Total net position 26,004,664$ 30,347,081$ 56,351,745$

SEPTEMBER 30, 2017

The accompanying notes to financial statements are an integral part of this statement.

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Changes in Net PositionOperating Capital

Charges for Grants and Grants and Governmental Business-typeFunctions/Programs Expenses Services Contributions Contributions Activities Activities Total

Governmental activities:General government 2,068,305$ 97,988$ 10,000$ -$ (1,960,317)$ -$ (1,960,317)$ Public safety 2,560,071 1,072,459 102,304 - (1,385,308) - (1,385,308) Transportation 1,279,567 - 926,705 - (352,862) - (352,862) Physical environment 156,593 - - 14,682 (141,911) - (141,911) Culture and recreation 440,918 82,505 - 757,265 398,852 - 398,852 Interest on long-term debt 46,427 - - - (46,427) - (46,427)

Total governmental activities 6,551,881 1,252,952 1,039,009 771,947 (3,487,973) - (3,487,973)

Business-type activities:Electric 11,287,800 12,336,002 - - - 1,048,202 1,048,202 Water 1,557,536 1,584,628 - - - 27,092 27,092 Sewer 1,828,511 1,870,851 - 439,586 - 481,926 481,926 Solid Waste 683,520 669,549 - - - (13,971) (13,971) Stormwater 139,366 141,535 - 495,739 - 497,908 497,908

Total business-type activities 15,496,733 16,602,565 - 935,325 - 2,041,157 2,041,157

Total primary government 22,048,614$ 17,855,517$ 1,039,009$ 1,707,272$ (3,487,973) 2,041,157 (1,446,816)

General revenues:Property taxes 1,299,092 - 1,299,092 Sales taxes 1,302,150 - 1,302,150 Public service taxes 366,690 - 366,690

Other taxes 35,390 - 35,390 Franchise and utility taxes 164,356 - 164,356 State revenue sharing 210,924 - 210,924

Other intergovernmental revenues 5,971 - 5,971 Investment earnings 16,533 48,565 65,098 Miscellaneous revenues 22,633 393,395 416,028

Transfers 945,944 (945,944) - Total general revenues and transfers 4,369,683 (503,984) 3,865,699

Change in net position 881,710 1,537,173 2,418,883 Net position - beginning 25,122,954 28,809,908 53,932,862

Net position - ending 26,004,664$ 30,347,081$ 56,351,745$

Program Revenues

CITY OF GREEN COVE SPRINGSSTATEMENT OF ACTIVITIES

FOR THE YEAR ENDED SEPTEMBER 30, 2017

Net (Expense) Revenue and


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CITY OF GREEN COVE SPRINGSBALANCE SHEET

GOVERNMENTAL FUNDSSEPTEMBER 30, 2017

Spring Park Nonmajor TotalDisaster Capital Improvement Governmental Governmental

General Fund Fund Funds Funds

ASSETSEquity in pooled cash and investments 362,847$ -$ 734,969$ 659,233$ 1,757,049$ Accounts receivable, net 48,530 - - - 48,530 Due from other governments 599,198 529,522 - - 1,128,720 Due from other funds 742,479 - - - 742,479 Inventories 38,048 - - - 38,048 Prepaid items 104,677 - - - 104,677

Total assets 1,895,779$ 529,522$ 734,969$ 659,233$ 3,819,503$

LIABILITIESAccounts payable and accrued liabilities 237,296$ 240,709$ 154,459$ 122,931$ 755,395$ Due to other funds - 294,769 - - 294,769

Total liabilities 237,296 535,478 154,459 122,931 1,050,164

FUND BALANCESNonspendable:

Inventories 38,048 - - - 38,048 Prepaid items 104,677 - - - 104,677

Restricted for:Public safety 193,186 - - 509,136 702,322 Debt service 60,904 - 20,468 - 81,372 Capital projects 507,038 - - - 507,038

Assigned to:Capital projects - - 560,042 27,166 587,208 Subsequent year's budget 754,630 - - - 754,630

Unassigned - (5,956) - - (5,956) Total fund balances 1,658,483 (5,956) 580,510 536,302 2,769,339

Total liabilities and fund balances 1,895,779$ 529,522$ 734,969$ 659,233$ 3,819,503$


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Fund balances - total governmental funds 2,769,339$

Amounts reported for governmental activities in the statement of activities aredifferent because:

Capital assets used in governmental activities are not financial resources and,therefore, are not reported in the funds

Total governmental capital assets 37,332,493Less: accumulated depreciation (10,406,487) 26,926,006

On the governmental fund statements, a net pension liability is not recorded until an

amount is due and payable and the pension plan’s fiduciary net position is not sufficientfor payment of those benefits (no such liability exists at the end of the current fiscal year). On the Statement of Net Position, the City's net pension liability (asset) of the definedbenefit pension plans is reported as a noncurrent liability (asset). Additionally, deferredoutflows and deferred inflows related to pensions are also reported.

Net pension liability (1,935,216) Net pension asset 596,484 Deferred outflows related to pensions 1,324,460 Deferred inflows related to pensions (520,581) (534,853)

Long-term liabilities, including bonds payable and notes payable, are not due and payablein the current period and, therefore, are not reported in the funds. These liabilities,deferred outflows, and other debt-related deferred charges consist of the following:

Bonds and notes payable (2,306,000) Accrued interest payable (10,993) Net OPEB obligation (298,911) Compensated absences (539,924) (3,155,828)

Net position of governmental activities 26,004,664$

TO THE STATEMENT OF NET POSITIONSEPTEMBER 30, 2017

CITY OF GREEN COVE SPRINGSRECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS


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CITY OF GREEN COVE SPRINGSSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2017

Spring Park Nonmajor TotalDisaster Capital Improvement Governmental Governmental

General Fund Fund Funds FundsRevenues

Taxes 3,045,480$ -$ -$ -$ 3,045,480$ Permits and fees 6,424 - - 385,505 391,929 Intergovernmental 1,551,601 529,522 - - 2,081,123 Charges for services 810,382 - - - 810,382 Fines and forfeitures 751,410 - - 12,856 764,266 Investment income 16,533 - - - 16,533 Miscellaneous 25,588 961 - 13,614 40,163

6,207,418 530,483 - 411,975 7,149,876

ExpendituresCurrent:

General government 1,300,930 737,939 - 256,894 2,295,763 Public safety 2,463,548 - - 422 2,463,970 Transportation 916,531 - - - 916,531 Physical environment 140,443 - - - 140,443 Culture and recreation 308,996 - - - 308,996

Capital outlay 343,393 - 2,127,971 14,532 2,485,896 Debt service:

Principal retirement - - 58,000 136,000 194,000 Interest and fiscal charges - - 23,376 23,939 47,315

Total expenditures 5,473,841 737,939 2,209,347 431,787 8,852,914

Excess (deficiency) of revenues over expenditures 733,577 (207,456) (2,209,347) (19,812) (1,703,038)

Other financing sources (uses)Transfers in 997,277 201,500 2,132,000 159,939 3,490,716 Transfers out (2,544,772) - - - (2,544,772)

Total other financing sources (uses) (1,547,495) 201,500 2,132,000 159,939 945,944

Net change in fund balances (813,918) (5,956) (77,347) 140,127 (757,094)

Fund balances, beginning of year 2,472,401 - 657,857 396,175 3,526,433

Fund balances, end of year 1,658,483$ (5,956)$ 580,510$ 536,302$ 2,769,339$

The accompanying notes to financial statements are an integral part of this statement

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Net change in fund balances - total governmental funds (757,094)$

Differences in amounts reported for governmental activities in the statement of activities are:

Governmental funds report capital outlays as expenditures. However, in the statement ofactivities, the cost of those assets is depreciated over their estimated useful lives.

Capital outlay expenditures 2,485,896 Depreciation expense (920,494)

Bond and loan proceeds are reported as financing sources in the governmental funds. However,the issuance of debt is reported as long-term debt payable in the statement of net position.Repayment of bond and note principal is an expenditure in the governmental funds, butthe repayment of debt principal reduces long-term liabilities in the statement of net position.These amounts are as follows:

Principal repayment of general long-term debt 194,000

Governmental funds report contributions to defined benefit pension plans as expenditures.However, in the Statement of Activities, the amount contributed to defined benefit pension plansreduces future net pension liability (asset). Also included in pension expense in the Statement of Activitiesare amounts required to be amortized.

Change in net pension liability (asset) and deferred inflows/outflows related to pensions (50,933)

Under the modified accrual basis of accounting used in the governmental funds, expendituresare not recognized for transactions that are not normally paid with expendable availablefinancial resources. In the statement of activities, however, which is presented on the accrualbasis, expenses and liabilities are reported regardless of when financial resources are available.In addition, interest on long-term debt is not recognized under the modified accrual basis ofaccounting until due, rather than as it accrues. These adjustments are as follows:

Change in accrued interest on long-term debt 888 Change in compensated absences liability (39,394) Change in net OPEB obligation (31,159)

Change in net position of governmental activities 881,710$

CITY OF GREEN COVE SPRINGSRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

TO THE STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2017

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


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BUDGET AND ACTUAL - GENERAL FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2017

Variance withBudgeted Amounts Final Budget -

PositiveOriginal Final Actual (Negative)

REVENUES Taxes 2,911,963$ 2,911,963$ 3,045,480$ 133,517$ Permits and fees 15,000 15,000 6,424 (8,576) Intergovernmental 2,693,719 2,723,411 1,551,601 (1,171,810) Charges for services 779,014 779,014 810,382 31,368 Fines and forfeitures 531,880 531,880 751,410 219,530 Investment income 5,000 5,000 16,533 11,533 Miscellaneous 24,298 24,298 25,588 1,290

Total revenues 6,960,874 6,990,566 6,207,418 (783,148)

EXPENDITURESCurrent:

General government 1,540,152 1,550,927 1,300,930 249,997 Public safety 2,496,917 2,612,284 2,463,548 148,736 Transportation 1,369,375 1,387,667 916,531 471,136 Physical environment 185,446 186,489 140,443 46,046 Culture and recreation 390,381 391,146 308,996 82,150

Capital outlay 1,393,466 1,492,858 343,393 1,149,465 Total expenditures 7,375,737 7,621,371 5,473,841 2,147,530

Excess (deficiency) of revenues over (under) expenditures (414,863) (630,805) 733,577 1,364,382

Other financing sources (uses)Transfers in 997,277 997,277 997,277 - Transfers out (2,091,500) (2,712,700) (2,544,772) 167,928 Proceeds from sale of capital assets 45,000 45,000 - (45,000)

Total other financing sources (uses) (1,049,223) (1,670,423) (1,547,495) 122,928

Net change in fund balances (1,464,086) (2,301,228) (813,918) 1,487,310

Fund balances, beginning of year 2,472,401 2,472,401 2,472,401 -

Fund balances, end of year 1,008,315$ 171,173$ 1,658,483$ 1,487,310$


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BUDGET AND ACTUAL - GENERAL FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2017

Variance withBudgeted Amounts Final Budget -

PositiveOriginal Final Actual (Negative)

REVENUES Intergovernmental -$ 597,500$ 529,522$ (67,978)$ Miscellaneous - 1,000 961 (39)

Total revenues - 598,500 530,483 (68,017)


General government - 800,000 737,939 62,061

Excess (deficiency) of revenues over (under) expenditures - (201,500) (207,456) (5,956)

Other financing sources (uses)Transfers in - 201,500 201,500 -

Net change in fund balances - - (5,956) (5,956)

Fund balances, beginning of year - - - -

Fund balances, end of year -$ -$ (5,956)$ (5,956)$


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CITY OF GREEN COVE SPRINGSSTATEMENT OF NET POSITION

PROPRIETARY FUNDSSEPTEMBER 30, 2017

Nonmajor Fund Business-typeElectric Water Sewer Solid Waste Stormwater Activities - InternalUtility Utility Utility Utility Utility Total Service Funds

ASSETSCurrent assets:

Equity in pooled cash 4,538,395$ 1,197,635$ 541,896$ 68,661$ -$ 6,346,587$ 18,133$ Investments 4,145,679 291,036 - - - 4,436,715 - Restricted cash - 453,431 924,775 - - 1,378,206 - Restricted investments 68,808 14,375 - - - 83,183 - Accounts receivable, net 1,491,101 189,984 210,222 67,723 15,559 1,974,589 - Due from other governments - - 325,666 - 495,746 821,412 - Inventories 398,716 60,028 518 - - 459,262 -

Total current assets 10,642,699 2,206,489 2,003,077 136,384 511,305 15,499,954 18,133

Noncurrent assets:Capital assets:

Nondepreciable capital assets - 147,670 1,003,981 - - 1,151,651 - Depreciable capital assets, net 8,557,543 6,259,477 3,807,075 502,509 645,256 19,771,860 52,418

Total noncurrent assets 8,557,543 6,407,147 4,811,056 502,509 645,256 20,923,511 52,418

Total assets 19,200,242$ 8,613,636$ 6,814,133$ 638,893$ 1,156,561$ 36,423,465$ 70,551$

DEFERRED OUTFLOWS OF RESOURCESDeferred outflows related to pensions -$ 128,826$ 127,697$ 91,979$ 8,220$ 356,722$ 82,496$

LIABILITIESCurrent liabilities:

Accounts payable and accrued liabilities 1,150,175$ 48,717$ 529,830$ 19,960$ 2,853$ 1,751,535$ 8,241$ Deposits 565,762 42,475 37,900 24,197 - 670,334 - Unearned revenue 431,351 - - - - 431,351 - Due to other funds - - - - 447,710 447,710 - Compensated absences 4,111 30,924 30,924 20,540 4,305 90,804 15,275 Payable from restricted assets:

Capital leases payable - current 55,166 - - 70,891 - 126,057 - Current maturities on long-term debt 263,269 155,372 1,863 - - 420,504 - Accrued interest payable 3,576 - - 1,600 - 5,176 -

Total current liabilities 2,473,410 277,488 600,517 137,188 454,868 3,943,471 23,516

Noncurrent liabilities:Bonds, notes, and capital leases payable, net 339,243 329,047 222,795 202,593 - 1,093,678 - Compensated absences 9,593 72,155 72,155 47,928 10,045 211,876 35,641 Net OPEB obligation 4,594 29,273 28,960 32,855 8,862 104,544 27,279 Net pension liability - 295,302 292,717 210,839 18,843 817,701 189,104

Total noncurrent liabilities 353,430 725,777 616,627 494,215 37,750 2,227,799 252,024

Total liabilities 2,826,840$ 1,003,265$ 1,217,144$ 631,403$ 492,618$ 6,171,270$ 275,540$ DEFERRED INFLOWS OF RESOURCES

Deferred inflows related to pensions -$ 40,870$ 40,512$ 29,180$ 2,608$ 113,170$ 26,173$

NET POSITIONNet investment in capital assets 7,899,865$ 5,922,728$ 4,586,398$ 229,025$ 645,256$ 19,283,272$ 52,418$ Restricted for debt service 68,808 14,375 280 - - 83,463 - Restricted for system improvements - 453,431 924,495 - - 1,377,926 - Unrestricted 8,404,729 1,307,793 173,001 (158,736) 24,299 9,751,086 (201,084)

Total net position 16,373,402$ 7,698,327$ 5,684,174$ 70,289$ 669,555$ 30,495,747$ (148,666)$

Cumulative adjustment to reflect consolidation of internal service fund activities related to enterprise fund (148,666) Net position, business-type activities 30,347,081$

Business-type Activities - Enterprise FundsMajor Funds


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CITY OF GREEN COVE SPRINGSSTATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2017


Operating revenuesCharges for services 12,251,113$ 1,573,724$ 1,858,138$ 664,559$ 141,535$ 16,489,069$ 358,509$ Other revenues 84,889 10,904 12,713 4,990 - 113,496 -

Total operating revenues 12,336,002 1,584,628 1,870,851 669,549 141,535 16,602,565 358,509

Operating expensesElectric power expense 8,841,703 - - - - 8,841,703 - Personnel services 57,684 506,869 498,178 361,379 81,998 1,506,108 291,710 Billing and administrative 434,345 218,402 249,415 103,576 - 1,005,738 - Contractual services 1,095,904 50,280 41,895 32,200 8,798 1,229,077 26,085 Utilities 8,920 79,788 158,330 6,174 - 253,212 - Repairs and Maintenance 21,381 141,216 223,870 14,563 10,038 411,068 1,697 Materials and supplies 172,854 64,710 183,191 58,563 7,269 486,587 11,699 Insurance 22,510 17,342 - 4,944 - 44,796 906 Depreciation 603,538 456,006 471,006 93,015 31,263 1,654,828 14,292

Total operating expenses 11,258,839 1,534,613 1,825,885 674,414 139,366 15,433,117 346,389

Operating income (loss) 1,077,163 50,015 44,966 (4,865) 2,169 1,169,448 12,120

Nonoperating revenues (expenses)Interest earnings 33,963 6,904 4,528 3,170 - 48,565 - Miscellaneous 334,830 46,445 - - - 381,275 - Interest expense (28,961) (22,923) (2,626) (9,106) - (63,616) -

Total nonoperating revenues (expenses) 339,832 30,426 1,902 (5,936) - 366,224 -

Income (loss) before contributionsand transfers 1,416,995 80,441 46,868 (10,801) 2,169 1,535,672 12,120

Capital grants - - 439,586 - 495,739 935,325 - Transfers in - - - - 131,633 131,633 - Transfers out (930,300) (65,638) (65,639) (16,000) - (1,077,577) -

Change in net position 486,695 14,803 420,815 (26,801) 629,541 1,525,053 12,120

Net position, beginning of year 15,886,707 7,683,524 5,263,359 97,090 40,014 28,970,694 (160,786)

Net position, end of year 16,373,402$ 7,698,327$ 5,684,174$ 70,289$ 669,555$ 30,495,747$ (148,666)$

Change in proprietary funds net position 1,525,053$ Adjustment to reflect consolidation of internal service fund activities related to enterprise funds 12,120 Change in net position of business-type activities 1,537,173$



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CITY OF GREEN COVE SPRINGSSTATEMENT OF CASH FLOWS

PROPRIETARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2017


Cash flows from operating activitiesCash received from customers 12,587,865$ 1,584,868$ 1,846,898$ 672,341$ 156,766$ 16,848,738$ 358,509$ Cash paid to employees (491,847) (682,167) (706,992) (437,470) (81,036) (2,399,512) (286,477) Cash paid to suppliers (10,267,812) (339,630) (112,281) (108,086) (25,572) (10,853,381) (41,647) Other receipts 334,830 46,445 - - - 381,275 -

Net cash provided by (used in)Personnel services 2,163,036 609,516 1,027,625 126,785 50,158 3,977,120 30,385

Cash flows from noncapital financing activitiesTransfers from other funds - - - - 131,633 131,633 - Transfers to other funds (930,300) (65,638) (65,639) (16,000) - (1,077,577) - Interfund loans - - - - 445,581 445,581 (1,311)

Net cash provided by (used in)noncapital financing activities (930,300) (65,638) (65,639) (16,000) 577,214 (500,363) (1,311)

Cash flows from capital and related financing activitiesAcquisition and construction of capital assets (1,075,765) (165,138) (853,505) (165,887) (627,372) (2,887,667) (10,941) Capital grants - - 113,920 - - 113,920 - Principal payments of long-term debt (307,352) - - - - (307,352) - Proceeds from issuance of long-term debt - - 180,652 111,902 - 292,554 - Interest paid (31,241) (172,496) (2,626) (7,506) - (213,869) -

Net cash provided by (used in) capitaland related financing activities (1,414,358) (337,634) (561,559) (61,491) (627,372) (3,002,414) (10,941)

Cash flows from investing activities

Interest received 33,963 6,904 4,528 3,170 - 48,565 - Purchases of investments (45,284) (3,281) - - - (48,565) -

Net cash provided by (used in)investing activities (11,321) 3,623 4,528 3,170 - - -

Net change in cash and cash equivalents (192,943) 209,867 404,955 52,464 - 474,343 18,133

Cash and cash equivalents, beginning of year 4,731,338 1,441,199 1,061,716 16,197 - 7,250,450 -

Cash and cash equivalents, end of year 4,538,395$ 1,651,066$ 1,466,671$ 68,661$ -$ 7,724,793$ 18,133$

Cash and cash equivalents classified as:Unrestricted 4,538,395$ 1,197,635$ 541,896$ 68,661$ -$ 6,346,587$ 18,133$ Restricted - 453,431 924,775 - - 1,378,206 -

Total cash and cash equivalents 4,538,395$ 1,651,066$ 1,466,671$ 68,661$ -$ 7,724,793$ 18,133$

Reconciliation of operating income to netcash provided by operating activities:

Operating income (loss) 1,077,163$ 50,015$ 44,966$ (4,865)$ 2,169$ 1,169,448$ 12,120$ Adjustments to reconcile net operating

income (loss) to net cash provided by (used in)operating activities:

Depreciation 603,538 456,006 471,006 93,015 31,263 1,654,828 14,292 Nonoperating revenues (expenses) 334,830 46,445 - - - 381,275 - Changes in assets and liabilities: -

Accounts receivable 90,823 240 (29,003) (4,955) 15,238 72,343 - Due from other governments - - - - (7) (7) - Inventories (189,695) (22,617) 528 - - (211,784) - Prepaid items - - - - - - - Accounts payable and accrued liabilities 85,155 36,323 494,477 8,358 533 624,846 (1,260) Deposits 5,692 - 5,050 7,747 - 18,489 - Unearned revenue 155,348 - - - - 155,348 - Compensated absences (314) 11,574 11,574 (1,126) 163 21,871 1,698 Net pension liability - 27,500 25,309 25,834 132 78,775 843 Net OPEB obligation 496 4,030 3,718 2,777 667 11,688 2,692

Net cash provided by (used in) operating activities 2,163,036$ 609,516$ 1,027,625$ 126,785$ 50,158$ 3,977,120$ 30,385$



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CITY OF GREEN COVE SPRINGSSTATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDSSEPTEMBER 30, 2017

PensionTrustFund

ASSETS

Cash and cash equivalents with trustee 19,085$

Investments, at fair valuePooled Funds – Fixed Income 749,069 Pooled Funds – Fixed Income Funds 1,102,134 Pooled Funds – Equities 2,900,853

Total investments 4,752,056

Total assets 4,771,141$

NET POSITIONHeld in trust for pension benefits 4,771,141$


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CITY OF GREEN COVE SPRINGSSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2017

PensionTrustFund

Additions

Contributions:Employer 181,998$ Members 9,860 State 93,609

Total contributions 285,467

Investment Income:Net appreciation (depreciation) in fair value of investments 545,313

Total additions 830,780

DeductionsMember benefits 19,348 Administration fees 15,546

Total deductions 34,894

Change in net position 795,886

Net position restricted for pensions, beginning of year 3,975,255

Net position restricted for pensions, end of year 4,771,141$


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CITY OF GREEN COVE SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2017

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(1) Summary of Significant Accounting Policies:

The financial statements of the City of Green Cove Springs (the City), have been prepared in conformance with accounting principles generally accepted in the United States of America as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted body for promulgating governmental accounting and financial reporting principles. The following is a summary of the City’s significant accounting policies:

(a) Reporting entity⎯The City which is located in northeast Florida, is a political subdivision of the State of Florida and was established in 1911 by Chapter 6350, Laws of Florida. The City is governed by a five-member City Council and provides utility services (electric, water, sewer, stormwater, and refuse collection), as well as public safety, road and street maintenance, parks, recreation, and general administrative services.

As required by U.S. generally accepted accounting principles, the accompanying financial statements present the City as a primary government. Component units, if any, would also be presented. Component units are entities for which a primary government is considered to be financially accountable. The City has no component units.

(b) Basis of presentation⎯The financial statements of the City have been prepared in accordance with generally accepted accounting principles (GAAP) as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are hereafter described.

(c) Government-wide financial statements⎯The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external parties.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: a) charges for services that are directly related to a given function; and b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other revenues not properly included among program revenues are reported instead as general revenues.

(d) Fund financial statements⎯Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements, but all nonmajor funds are aggregated and displayed in a single column.

The governmental fund financial statements include reconciliations with brief explanations to better identify the relationship between the government-wide statements and the statements for the governmental funds.

The city reports the following major governmental funds:

General Fund—the primary operating fund, used to account for all activities except those required to be accounted for in another fund.


SEPTEMBER 30, 2017

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(1) Summary of Significant Accounting Policies: (Continued)

Disaster Fund—a special revenue fund, used to account for the revenues and expenditures related to Hurricane Matthew and Hurricane Irma.

Spring Park Capital Improvement Fund—a capital project fund, used to account for the capital improvements to Spring Park.

The City reports the following proprietary funds:

Electric Utility Fund—an enterprise fund, used to account for the activities of the City’s electric utility.

Water Utility Fund—an enterprise fund, used to account for the activities of the City’s water utility.

Sewer Utility Fund—an enterprise fund, used to account for the activities of the City’s wastewater utility.

Solid Waste Utility Fund—an enterprise fund, used to account for the activities of the City’s sanitation utility.

Storm Water Utility Fund—an enterprise fund, used to account for the activities of the City’s storm water utility.

The City reports the following fiduciary fund:

Pension Trust Fund—to account for activities of the City’s police officers’ pension plan.

In addition, the government reports the following types of funds:

Special Revenue Funds—to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purpose.

Capital Project Funds—to account for the costs of constructing public buildings and renovations.

Internal Service Fund—to account for customer services provided to the proprietary funds.

(e) Measurement focus, basis of accounting, and financial statement presentation⎯The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and 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.

Governmental funds are accounted for using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they become measurable and available as net current assets. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Taxes and certain intergovernmental revenues constitute the most significant sources of revenue considered susceptible to accrual. In governmental funds, expenditures are generally recognized when the related liability is incurred. However, debt service expenditures, pension expenditures, other postretirement benefit expenditures, and expenditures related to compensated absences, claims, and judgments, are recorded only when payment is due.


SEPTEMBER 30, 2017

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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.

(f) Fund balance—Fund balance classifications are comprised of a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. Fund balance is reported in five components: nonspendable, restricted, committed, assigned, and unassigned:

Nonspendable—this component of fund balance consists of amounts that cannot be spent because: (a) they are not expected to be converted to cash; or (b) they are legally or contractually required to remain intact. Examples of this classification are prepaid items, inventories, and principal (corpus) of an endowment fund. On the governmental funds balance sheet, the inventory balance reported is offset by a nonspendable fund balance classification, which indicates it does not constitute “available spendable resources” even though it is a component of net current assets.

Restricted—this component of fund balance consists of amounts that are constrained either: (a) externally by third parties (creditors, grantors, contributors, or laws or regulations of other governments); or (b) by law through constitutional provisions or enabling legislation.

Committed—this component of fund balance consists of amounts that can only be used for the specific purposes determined by a formal action of the City Council’s highest level of decision-making authority (i.e., by ordinance). These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action employed to constrain those amounts.

Assigned—this component of fund balance consists of amounts that are constrained by a less-than-formal action of the organization’s governing authority, or by an individual or body to whom the governing authority has delegated this responsibility. The City Council has not formally delegated this authority. In addition, residual balances in capital projects and debt service funds are considered assigned for the general purpose of the respective fund.

Unassigned—this classification is used for: (a) deficit unrestricted fund balances in any governmental fund; or (b) fund balances within the general fund that are not restricted, committed, or assigned.

The City’s fiscal policy establishes a reservation of fund balance equal to 90 days for utility funds and 30 days for the general fund of the current fiscal year operating budget.

(g) Fund balance flow assumption—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. When unrestricted resources (committed, assigned, and unassigned) are available for use in any governmental fund, it is the City’s policy to use committed resources first, then assigned, and then unassigned, as needed.

(h) Deposits and investments—For purpose of the statement of cash flows, the City considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Investments are reported at fair value based on quoted market prices, except for the City’s investments in the Florida PRIME portion of the State Investment Pool, which are reported at amortized cost, and certificates of deposit, which are reported at cost, which approximates fair value.


SEPTEMBER 30, 2017

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(i) Accounts receivable—Receivables are stated at net realizable value, reduced by an allowance for uncollectable accounts, where appropriate, which is based upon management's analysis of historical trends. Utility operating sales are generally recognized on the basis of cycle billings rendered monthly. Unbilled accounts receivable are accrued by the City at September 30th, to recognize the sales revenues earned between the last meter reading and bill dates in mid-September through the end of the fiscal year.

(j) Inventories—Governmental fund inventories are reported at cost, first-in, first-out (FIFO) under the consumption method. Inventories of the enterprise fund are valued at the lower of cost or market as determined by the average unit cost method.

(k) Capital assets—Capital assets are recorded at historical cost or estimated historical cost, except for contributed assets, which are recorded at acquisition value at the date of contribution. The City uses a capitalization threshold of $1,000 for all classes of capital assets. Depreciation of capital assets is provided using the straight-line method over the estimated useful lives of the assets, which range as follows:

Assets Years

Water and Wastewater Treatment Plant 20 – 30 Water and Wastewater Pumping and Collecting Plant

20 – 30

General Plant and Equipment 10 – 20 Buildings 30 Improvements Other than Buildings 10 - 30 Machinery and equipment 5 – 35 years Infrastructure 20 - 50

For its business-type activities, the City’s policy is to capitalize construction period interest costs on projects funded specifically through debt financing. Interest earnings are offset against construction costs for qualified projects financed with tax-exempt debt. No interest costs were capitalized during 2017.

(l) Claims and judgments—For governmental funds, a fund liability is reported to account for the portion of the liability that will be liquidated with expendable available financial resources. The liability is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements.

(m) Compensated absences—The City’s policy is to allow limited vesting of employee vacation pay and accumulated sick leave. A liability for accrued compensated absences of employees of the governmental funds has been accrued. Since this liability will not be liquidated with expendable available financial resources, the liability has not been reported in the governmental funds. A liability for compensated absences is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. In prior years, compensated absences liabilities associated with governmental funds were liquidated by the General Fund which incurred the liabilities.


SEPTEMBER 30, 2017

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(n) Deferred inflows and outflows of resources—In addition to assets, the statement of financial position will, if required, report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Currently, the only item in this category is deferred amounts related to pension, as discussed further in Note (8).

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Currently, the only item in this category is deferred inflows of resources related to pensions, as discussed further in Note (8).

(o) Property taxes—The Clay County Tax Collector bills and collects property taxes for the City. At September 30, 2017, the property taxes receivable were not material.

Details of the City’s tax calendar are presented below:

Lien Date January 1 Levy Date October 1 Discount Period November through February No Discount Period March Delinquent Date April 1

(p) Operating revenues and expenses—Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund’s principal ongoing operations. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

(q) Restricted net position—In the accompanying government-wide and proprietary funds’ statements of net position, restricted net position is subject to restrictions beyond the City’s control. The restriction is either externally imposed (for instance, by creditors, grantors, contributors, or laws/regulations of other governments) or is imposed by law through constitutional provisions or enabling legislation.

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.

(r) Use of estimates—The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make various estimates. Actual results could differ from those estimates.


SEPTEMBER 30, 2017

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(2) Reconciliation of Government-Wide and Fund Financial Statement:

(a) Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net position⎯Following the governmental fund balance sheet is a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. A detailed explanation of these differences is provided in this reconciliation.

(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⎯ Following the governmental fund statement of revenues, expenditures, and changes in fund balances, there is 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. A detailed explanation of these differences is provided in this reconciliation.

(3) Deposits and Investments:

(a) Deposits⎯All of the City’s deposits are held in qualified public depositories pursuant to Chapter 280, Florida Statutes and, accordingly, are entirely insured by Federal Depository Insurance or collateralized pursuant to the Florida Security for Public Deposits Act.

(b) Investments⎯The general investments are governed by the City’s Investment Policy and by Florida Statutes. The City’s investment policy authorizes investments in the Florida Local Government Surplus Funds Trust Fund, U.S. government securities, U.S. government agencies, federal instrumentalities, interest-bearing time deposits, saving accounts, state/local government debt, money market mutual funds, and intergovernmental investment pools.

The City invests temporarily idle resources in Certificates of Deposit and the Local Government Investment Pool (State Pool). The State Pool is administered by the Florida State Board of Administration (SBA), who provides regulatory oversight.

Florida Prime Investment Pool (Florida PRIME) is similar to money market funds in which units are owned in the fund rather than the underlying investments. These investments are reported at amortized cost and meet the requirements of GASB Statement No.31, as amended by GASB Statement No. 79, Certain External Investment Pools and Pool Participants, which establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. There is no limitation or restrictions on withdrawals from Florida PRIME; although in the occurrence of an event that has a material impact on liquidity or operations of the trust fund, the funds’ executive director may limit contributions to or withdrawals from the trust fund for a period of 48 hours.


SEPTEMBER 30, 2017

- 35 -

(3) Deposits and Investments: (Continued)

The City is exposed to the following risks associated with its non-pension investment portfolio:

Credit risk—The risk that an issuer or other counterparty to an investment will not fulfill its obligations. Investment in state or local government debt must be rated at least AA by Moody’s or Standard & Poor’s.

Interest rate risk—The risk that changes in interest rates will adversely affect the fair value of an investment. The City limits its investments to maturities of less than five years.

The City’s investment policy does not formally address the risks noted above.

The City’s investments consisted of the following at September 30, 2017:

Investment Type Amount

Weighted Average Maturity Credit Risk

Florida PRIME $ 6,058,541 51 days AAAM(S&P)

Municipal Police Officers’ Retirement Trust Fund Investment Portfolio

The Municipal Police Officers’ Retirement Trust Fund has adopted an investment policy which authorizes the pension manager to invest in equities, fixed income investments, money market funds, and pooled funds.

The Plan is subject to using fair value measurement guidelines established by GASB Statement No. 72. These guidelines recognize a three-tiered fair value hierarchy, as follows:

• Level 1: Quoted prices for identical investments in active markets; • Level 2: Observable inputs other than quoted market prices; and, • Level 3: Unobservable inputs.

The following chart shows the Municipal Police Officers’ Retirement Trust Fund cash and investment accounts by investment portfolios and their respective maturities (in years) and fair value measurement levels:

Investment Type Carrying

Value

Weighted Average Maturity (years)

Credit Rating (Fitch)

Fair Value Hierarchy

Classification

Pooled Funds – Fixed Income $ 749,069 6.10 AAf/S4 Level 2

Pooled Funds – Fixed Income Funds 1,102,134 7.40 NR Level 3

Pooled Funds – Equities 2,900,853 N/A NR Level 2Cash 19,085 N/A NR N/A

Total Portfolio $ 4,771,141


SEPTEMBER 30, 2017

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(3) Deposits and Investments: (Continued)

Interest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of investments. Generally, the longer the time to maturity, the greater the exposure to interest rate risk. The established performance objectives of the Pension Plan require investment maturities to provide sufficient liquidity to pay obligations as they become due. At September 30, 2017, all investments were held in cash or other assets that could be liquidated at any time.

Credit Risk: Credit risk is the risk that a debt issuer or other counter-party to an investment will not fulfill its obligations. The Pension Plan utilizes portfolio diversification in order to limit investments to the highest rated securities as rated by nationally recognized rating agencies. All investments are rated within the investment policy guidelines at September 30, 2017.

Concentration of Credit Risk: Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The Police Pension trust fund policy does not allow more than five (5) percent of its assets in the common stock, capital stock, or convertible securities of any one issuing company. At September 30, 2017, the investment portfolios met these limitations.

Custodial Credit Risk: Custodial credit risk is the risk that the City may not recover cash and investments held by another party in the event of financial failure. Custodial credit risk is limited since investments are held in independent custodial safekeeping accounts or mutual funds.

Foreign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. At September 30, 2017, the investment portfolio had no foreign investments.

(4) Interfund Balances and Transfers:

The outstanding balances between funds result mainly from the time lag between the dates reimbursable expenditures occur, when transactions are recorded in the accounting system, and when payments between funds are made. Individual fund interfund receivables and payables were comprised amounts due to the general fund of $294,769 and $447,710 from the disaster and stormwater utility funds, respectively.

The following is a summary of interfund transfers made during the 2017 fiscal year:

Fund Transfers In Transfers Out

General Fund $ 997,277 $ (2,544,772)Nonmajor Governmental Funds 2,493,439 - Electric Fund - (930,300)Water Fund - (65,638)Sewer Fund - (65,639)Solid Waste Fund - (16,000)Stormwater Fund 131,633 -

Totals $ 3,622,349 $ (3,622,349)

The interfund transfers resulted from the normal course of operations. Transfers to the nonmajor governmental funds were for the debt service of the new police building and the construction of the renovations to the historic Spring Park. Transfers from the utility funds were made for the services provided to such funds by the general fund.


SEPTEMBER 30, 2017

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(5) Receivables:

Receivables as of year-end include the applicable allowances for uncollectible accounts. The allowance for uncollectible accounts in the electric utility fund was $80,000. No other funds had an allowance for uncollectible accounts recorded at September 30, 2017.

Approximately $530,000 of the intergovernmental receivable amounts relate to Federal and State reimbursements related to Hurricane Matthew and Hurricane Irma, both of which impacted the City in fiscal year 2017. These amounts reflect management’s best estimate of recoveries based on costs incurred and approved project worksheets, and are subject to change pending adjustments made by the respective Federal and/or State agencies.

(6) Capital Assets:

Capital asset activity for the fiscal year ended September 30, 2017, is as follows:

Beginning Balance Increases Decreases

Ending Balance

Governmental activities: Capital assets, not being depreciated −

Land $ 8,014,273 $ 1,679 $ - $ 8,015,952Construction in progress 939,117 2,123,471 (3,062,588) -

Total capital assets, not being depreciated 8,953,390 2,125,150 (3,062,588) 8,015,952 Capital assets, being depreciated −

Buildings 10,357,414 50,539 - 10,407,953Improvements 3,544,261 3,133,486 - 6,677,747Machinery and equipment 2,806,822 218,898 (31,341) 2,994,379Infrastructure 9,216,051 20,411 - 9,236,462

Total capital assets, being depreciated 25,924,548 3,423,334 (31,341) 29,316,541 Less accumulated depreciation for− Total accumulated depreciation (9,517,334) (920,494) 31,341 (10,406,487)Total capital assets, being depreciated, net 16,407,214 2,502,840 - 18,910,054

Governmental activities capital assets, net $ 25,360,604 $ 4,627,990 $ (3,062,588) $ 26,926,006

Business-type activities: Capital assets, not being depreciated −

Land $ 227,136 $ - $ - $ 227,136 Construction in progress 80,000 844,515 - 924,515

Total capital assets, not being depreciated 307,136 844,515 - 1,151,651

Capital assets, being depreciated − Electric Transmission and Distribution

Plant 18,960,843 785,820 (262,016) 19,484,647 Water/Wastewater Treatment Plant 9,869,398 64,940 (72,976) 9,861,362 Water/Wastewater Pumping and

Collection Plant 15,053,976 12,671 (72,498) 14,994,149 General Plant and Equipment 4,848,027 1,431,783 (126,603) 6,153,207

Total capital assets, being depreciated 48,732,244 2,295,214 (534,093) 50,493,365

Less accumulated depreciation for − Total accumulated depreciation (29,237,071) (1,669,120) 237,104 (30,669,087) Total capital assets, being depreciated, net 19,495,173 626,094 (296,989) 19,824,278

Business-type activities capital assets, net $ 19,802,309 $ 1,470,609 $ (296,989) $ 20,975,929


SEPTEMBER 30, 2017

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(6) Capital Assets: (Continued)

Depreciation expense was charged to functions/programs as follows:

Governmental activities: General governmental $ 359,285Public safety 80,101Transportation 353,036Physical environment 6,150Culture and recreation 121,922

Total depreciation expense - governmental activities $ 920,494 Business-type activities:

Electric $ 603,538Water 456,006Wastewater 471,006Solid Waste 93,015Internal Service 14,292Stormwater 31,263

Total depreciation expense - business-type activities $ 1,669,120

(7) Long-Term Obligations:

Long-term liability activity for the year ended September 30, 2017, was as follows:

Beginning Balance Additions Deletions

Ending Balance

Due Within One Year

Governmental activities: Bonds and notes payable:

Sales Tax Revenue Note Series 2016A $ 1,470,000 $ - $ (136,000) $ 1,334,000 $ 139,000 Series 2016B 1,030,000 - (58,000) 972,000 60,000

Total bonds and notes payable 2,500,000 - (194,000) 2,306,000 199,000

Compensated absences 500,530 191,384 (151,990) 539,924 161,977 Governmental activities – Total long-term liabilities $ 3,000,530 $ 191,384 $ (345,990) $ 2,845,924 $ 360,977

Business-type activities:

Bonds and notes payable $ 1,330,523 $ 180,880 $ (403,868) $ 1,107,535 $ 420,504 Capital leases payable 474,087 150,911 (92,294) 532,704 126,057 Compensated absences 330,027 113,462 (89,893) 353,596 106,079

Business-type activities – Total long-term liabilities $ 2,134,637 $ 445,253 $ (586,055) $ 1,993,835 $ 652,640


SEPTEMBER 30, 2017

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(7) Long-Term Obligations: (Continued)

Bonds and notes payable in the City’s business-type activities at September 30, 2017, were comprised of the following obligations:

$2,270,000 - 2009 Electric Utility Revenue Note, for improvements to the City’s electrical distribution system. The note is payable in semi-annual installments of $137,616 (including interest of 3.59%) through January 1, 2019. This note is payable from and secured by the net revenues of the City’s electric utility system. $ 398,458

$1,650,000 - 2008 Water Revenue Note, for improvements to the City’s water system. The note is payable in semi-annual installments of $86,248 (including interest of 3.84%) through October 1, 2020. This note is payable from and secured by the net revenues of the City’s utility system. 484,419

$44,006 - 2016 Wastewater SRF Loan, for improvements to the City’s wastewater system. The loan is payable in semi-annual installments of $1,427 (including interest of 2.29%) through September 15, 2036. This loan is payable from and secured by the net revenues of the City’s utility system. 43,778

$180,880 - 2017 Wastewater SRF Loan, for improvements to the City’s wastewater system. The loan is payable in semi-annual installments of $21,914 (including interest of 0.66%) through May 15, 2023. This loan is payable from and secured by the net revenues of the City’s utility system. 180,880

$199,701 - 2016 Equipment Capital Lease, for the purchase of two garbage trucks. The lease is payable in annual installments of $42,779 (including interest of 2.33%) beginning June 30, 2016 through June 30, 2020. 122,573

$343,475 - 2016 Equipment Capital Leases, for the purchase of two electric utility trucks. The leases are payable in monthly installments of $2,346 (including interest of 3.40-3.45%) beginning March 1, 2016 through February 1, 2022. 259,220

$150,911 - 2017 Equipment Capital Lease, for the purchase of a recycling truck. The lease is payable in semiannual installments of $18,712 (including interest of 4.50%) beginning July 24, 2017 through January 24, 2022. 150,911

Total bonds and notes payable – business-type activities $ 1,640,239


SEPTEMBER 30, 2017

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(7) Long-Term Obligations: (Continued)

Bonds and notes payable in the City’s governmental activities at September 30, 2017, were comprised of the following obligations:

$1,470,000 - Refunding Revenue Note, Series 2016A, refunded Sales Tax Revenue Note, Series 2013, which was issued for the construction of the City’s new police station and emergency operations center. The note is payable in semi-annual installments of $80,513 (including interest of 1.63%) beginning January 1, 2017 through July 1, 2026. This note is payable from and secured solely by Sales Tax Revenue and Communication Service Tax Revenue. The approximate amount of this pledge is equal to the remaining principal and interest payments of $1,439,616. $ 1,334,000

$1,030,000 - Revenue Note, Series 2016B, for the construction of the City’s Spring Park Project. The note is payable in semi-annual installments of $40,103 (including interest of 2.25%) beginning January 1, 2017 through July 1, 2031. This note is payable from and secured solely by Sales Tax Revenue and Communication Service Tax Revenue. The approximate amount of this pledge is equal to the remaining principal and interest payments of $1,138,421. 972,000

Total bonds and notes payable – governmental activities $ 2,306,000

The annual requirements to amortize notes payable as of September 30, 2017, are as follows:

Governmental Activities

Year Ending September 30, Principal Interest Total

2018 $ 199,000 $ 42,706 $ 241,706 2019 202,000 39,091 241,091 2020 206,000 35,389 241,389 2021 210,000 31,636 241,636 2022 213,000 27,796 240,796

2023-2027 967,000 79,591 1,046,591 2028-2032 309,000 15,829 324,829

Total $ 2,306,000 $ 272,038 $ 2,578,038

Proprietary Funds

Year Ending September 30, Principal Interest Total

2018 $ 546,560 $ 47,585 $ 594,145 2019 469,375 30,982 500,357 2020 347,394 15,348 362,742 2021 141,915 5,551 147,466 2022 90,336 20,529 110,865

2023-2027 21,513 3,380 24,893 2028-2032 12,246 2,027 14,273 2033-2037 10,900 566 11,466

Total $ 1,640,239 $ 125,968 $ 1,766,207


SEPTEMBER 30, 2017

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(8) Employees’ Retirement Plans and Other-Postemployment Benefits:

A. Florida Retirement System

Plan Description and Administration

The City participates in the Florida Retirement System (FRS), a multiple-employer, cost sharing defined public employee retirement system which covers all of the City’s full-time employees, with the exception of police officers. The System is a noncontributory retirement plan, administered by the State of Florida, Department of Administration, Division of Retirement to provide retirement and survivor benefits to participating public employees. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. The FRS is a single retirement system administered by the Department of Management Services, Division of Retirement, and consists of two cost-sharing, multiple-employer retirement plans and other nonintegrated programs. These include a defined-benefit pension plan (Plan), with a Deferred Retirement Option Program (DROP), and a defined-contribution plan, referred to as the FRS Investment Plan (Investment Plan).

In addition, all regular employees of the City are eligible to enroll as members of the Retiree Health Insurance Subsidy (HIS) Program. The HIS is a cost-sharing, multiple-employer defined benefit pension plan established and administered in accordance with section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of the state-administered retirement systems in paying their health insurance costs. For the fiscal year ended September 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of service credited at retirement multiplied by $5. The minimum payment is $30 and the maximum payment is $150 per month, pursuant to section 112.363, Florida Statutes. To be eligible to receive a HIS benefit, a retiree under one of the state-administered retirement systems must provide proof of eligible health insurance coverage, which can include Medicare.

Benefits Provided and Employees Covered

Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable service and employees enrolled in the Plan on or after July 1, 2011, vest at eight years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service. All members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service. Members of both Plans may include up to 4 years of credit for military service toward creditable service. The Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments. Benefits under the Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the five highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement plan and/or class to which the member belonged when the service credit was earned.


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(8) Employees’ Retirement Plans and Other-Postemployment Benefits: (Continued)

DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the Plan to defer receipt of monthly benefit payments while continuing employment with an FRS employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest.

Employees may elect to participate in the Investment Plan in lieu of the FRS defined-benefit plan. Employer and employee contributions are defined by law, but the ultimate benefit depends in part on the performance of investment funds. The Investment Plan is funded by employer and employee contributions that are based on salary and membership class (Regular, DROP, etc.). Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Employees in the Investment Plan vest at one year of service.

Financial Statements

Financial statements and other supplementary information of the FRS are included in the State’s Comprehensive Annual Financial Report, which is available from the Florida Department of Financial Services, Bureau of Financial Reporting Statewide Financial Reporting Section by mail at 200 E. Gaines Street, Tallahassee, Florida 32399-0364; by telephone at (850) 413-5511; or at the Department’s Web site (www.myfloridacfo.com). An annual report on the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from:

Florida Department of Management Services Division of Retirement, Research and Education Services P.O. Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737

Contributions

The City participates in certain classes of FRS membership. Each class has descriptions and contribution rates in effect at September 30, 2017, as follows (contribution rates are in agreement with the actuarially determined rates):

FRS Membership Plan & Class

Employee Contribution

Rate

Employer Contribution

Rate

Regular Class 3.00% 7.52% Elected Officials 3.00% 45.50% Senior Management 3.00% 22.71%

Current-year employer HIS contributions were made at a rate of 1.66% of covered payroll.

Actual contributions made for City employees participating in FRS and HIS for the each of last three fiscal years ended September 30 were as follows:


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2017 2016 2015

City Contributions – FRS $ 207,762 $ 191,220 $ 206,110

City Contributions – HIS 38,681 38,076 43,243

Employee Contributions – FRS 66,709 51,761 55,791

Net Pension Liability, Pension Expense, and Deferred Outflows and Inflows of Resources Related to Pensions

At September 30, 2017, the City reported a liability of $2,942,021 for its proportionate share of the net pension liability, $2,172,731 related to FRS and $769,290 to HIS. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating governmental entities, as actuarially determined. At June 30, 2017 and June 30, 2016, the City’s FRS proportion was 0.007345438% and 0.008451778%, respectively. At June 30, 2017 and June 30, 2016, the City’s HIS proportion was 0.007194699% and 0.008436522%, respectively. For the year ended September 30, 2017, the City’s recognized pension expense of $378,640 from FRS and $44,941 from HIS, for a grand total of $423,581.

Deferred outflows/inflows related to pensions:

At September 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

FRS HIS

Deferred Outflows of Resources

Deferred Inflows of Resources



Differences between expected and actual experience $ 199,404 $ (12,036) $ - $ (1,602)

Changes of assumptions 730,191 - 108,136 (66,521)

Net difference between projected and actual investment earnings

- (53,846) 427 -

Change in City’s proportionate share 132,127 (144,665) 55,021 (128,508)

Contributions subsequent to measurement date 49,136 - 9,015 -

$ 1,110,858 $ (210,547) $ 172,599 $ (196,631)

The above amounts for deferred outflows of resources for contributions related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2017. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions being amortized for a period of greater than one year will be recognized in pension expense in succeeding years as follows:

2018 $ 135,7842019 322,6122020 216,2422021 312,5412022 119,225

Thereafter (8,276)

Total $ 818,128


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Actuarial assumptions:

The Actuarial assumptions for both defined benefit plans are reviewed annually by the Florida Retirement System Actuarial Assumptions Conference. The FRS has a valuation performed annually. The HIS Program has a valuation performed biennially that is updated for GASB reporting in the year a valuation is not performed. The most recent experience study for the FRS was completed in 2014 for the period July 1, 2008, through June 30, 2013. Because HIS is funded on a pay-as-you-go basis, no experience study has been completed.

The total pension liability for each of the defined benefit plans was determined by an actuarial valuation, using the entry age normal actuarial cost method. Inflation increases for both plans is assumed at 2.60%. Payroll growth, including inflation, for both plans is assumed at 3.25%. Both the discount rate and the long-term expected rate of return used for FRS investments is 7.10%. The plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Because HIS Program uses a pay-as-you-go funding structure, a municipal bond rate of 3.58% was used to determine the total pension for the program. This rate increased from the prior year rate, which was 2.85%. Mortality assumptions for both plans were based on the Generational RP-2000 with Projection Scale BB tables.

Long-term expected rate of return:

To develop an analytical basis for the selection of the long-term expected rate of return assumption, in October 2017, the FRS Actuarial Assumptions conference reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and by a capital market assumptions team from Aon Hewitt Investment Consulting, which consults to the Florida State Board of Administration. The table below shows Milliman’s assumptions for each of the asset classes in which the plan was invested at that time based on the long-term target asset allocation. The allocation policy’s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model.

Asset Class Target

Allocation

Long-Term Arithmetic Expected Rate of Return

Cash 1.0% 3.0% Fixed income 18.0% 4.5% Global equities 53.0% 7.8% Real estate 10.0% 6.6% Private equity 6.0% 11.5% Strategic investments 12.0% 6.1% Total 100.0%


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The following presents the proportionate shares of the FRS and HIS net pension liability of the City calculated using the current discount rates, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate:

Plan Current

Discount Rate NPL with

1% Decrease

NPL at Current

Discount Rate NPL with

1% Increase

FRS 7.10% $ 3,932,513 $ 2,172,731 $ 711,710 HIS 3.58% 877,862 769,290 678,856

B. Municipal Police Officers’ Retirement Trust Fund

Plan Description and Administration

The City participates in the Florida Municipal Pension Trust Fund for Police Officers (the Plan), an agent, multiple-employer, defined benefit pension plan sponsored by the Florida League of Cities to collectively manage individually designed employee pension plans of participating Florida municipalities. The City has established a Board of Trustees, which is solely responsible for administration of the Plan. The Board of Trustees establishes and may amend provisions of the Plan related to participant eligibility, contribution requirements, vesting, and benefit provisions. However, these plan provisions are subject to minimum requirements established in Chapters 112 and 185, Florida Statutes. The Plan does not issue a stand-alone financial report.

Benefits Provided and Employees Covered

The Plan provides retirement, disability and death benefits to plan participants and beneficiaries. No cost of living adjustments are provided to retirees and beneficiaries. The Plan’s Board of Trustees has contracted with an actuary to provide an actuarial valuation of each plan as of October 1 of every other year. Current membership in the Plan was composed of the following at October 1, 2017:

Inactive participants 8Active participants 18Retired participants 2

Total current membership 28

Employees vest with 100% full benefits after 6 years of service. Employees are eligible for normal retirement after attaining age 55 with 6 years of credited service, or 25 years of credited service, regardless of age. The Plan also provides for disability, retirement, and death benefits with eligibility and benefit provisions as described in the authorizing ordinance. Benefits at normal retirement are equal to 3.00% of average earnings (average of the highest five years of pensionable wages out of the last 10 years) time years of service. The minimum benefit for duty disability is 65% of final average compensation. The minimum benefit for nonduty disability is 25% of final average compensation.


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Financial Statements

The financial statements of the Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The government’s contributions are recognized when due and a formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. All plan investments are reported at fair value. Separate financial statements have not been prepared for the Plan.

Contributions

The participant contribution rates for the Plan are established by and may be amended by the City Council. Employees covered under the plan are required to make contributions of 1% of their compensation. The City’s annual required contribution for the current year was determined as part of the October 1, 2017 actuarial valuations. The City is required under the Florida Protection of Public Employee Retirement Benefits Act to contribute a payment which represents annual normal cost plus amortization of the unfunded actuarial accrued liability over various periods as prescribed by law. The City’s contributions (and if applicable, any liquidations of a net pension liability) to the Plan are funded by the General Fund.

The State of Florida also makes contributions to the Plan in accordance with Chapter 185 of the Florida Statutes as amended by the State Legislature. The City’s actual annual contribution for the plan is determined by subtracting estimated employee contributions and actual State of Florida contributions from the total annual required contribution as determined by the actuary.

Contributions to the Plan for the year ended September 30, 2017, were as follows:

Employee contributions $ 181,998City contributions 9,860State contributions 93,609

Total contributions $ 285,467

Investment Policy

See Note (3) for additional discussion of the investment policies for the Plan.

Net Pension Liability (Asset)

The components of the net pension liability (asset) for the Plan at September 30, 2017, was as follows:

Total pension liability $ 4,174,657Plan fiduciary net position (4,771,141)

Net pension liability (asset) $ (596,484)

Plan fiduciary net position as percentage of total pension liability 114.29%


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The total pension liability (asset) was determined by an actuarial valuation as of October 1, 2017, with a measurement date of September 30, 2017, using the following actuarial assumptions to all measurement periods.

Inflation 2.92% Salary increases 4.00% Investment rate of return 7.00%

Mortality rates for the Plan were based on the RP-2000 Combined Mortality Table, projected to 2015 by Scale AA.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

Best estimates of arithmetic real rates of return for each major class included in the pension plan’s target asset allocation as of September 30, 2017, are summarized in the following table:

Asset Class Target

Allocation

Long-Term Arithmetic Expected Rate of Return

Core Bonds 16.0% 0.50% Multi-sector 24.0% 1.00% Large Cap Equity 39.0% 6.00% Small Cap Equity 11.0% 6.75% Foreign Equity 10.0% 6.75% Total 100.0% 4.08%

Discount rate:

The discount rate used to measure the total pension liability for the pension plan was 7.00%. The projection of cash flows used to determine the discount rate assumed the plan member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.


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Changes in net pension liability:

Changes in the plan’s net pension liability were as follows:

Total Pension Liability

(a)

Plan Fiduciary Net Position (b)

Net Pension Liability (Asset) (a – b)

Beginning Balance $ 3,722,971 $ 3,975,255 $ (252,284)Changes for year: Service cost 219,094 - 219,094 Interest 274,502 286,900 (12,398) Contributions – employer/state - 275,607 (275,607) Contributions – employee - 10,155 (10,155) Net investment income - 258,118 (258,118) Benefit payments, including refunds (41,910) (19,348) (22,562) Administrative expenses - (15,546) 15,546New changes 451,686 795,886 (344,200)

Ending Balance $ 4,174,657 $ 4,771,141 $ (596,484)


The following presents the net pension liability (asset) of the City calculated using the current discount rate of 7.00%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate:

City’s Net Pension Liability (Asset) 1% Decrease

6.00%

Current Discount Rate

7.00% 1% Increase

8.00%

Municipal Police Officers’ Retirement Trust Fund 110,284 (596,484) (1,172,926)

Money-weighted rate of return:

For the year ended September 30, 2017, the annual money-weighted rate of return on Plan investments, net of pension plan investment expense was as follows:

Annual money-weighted rate of return 12.46%

The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.


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Pension Expense and Deferred Outflows and Inflows of Resources Related to Pensions

For the year ended September 30, 2017, the City recognized pension expense of $211,873 in the Plan.

At September 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Differences between expected and actual experience

$ - $ (132,370)

Changes of assumptions 480,221 - Net different between projected and actual

investment earnings - (120,376)

$ 480,221 $ (252,746)

Amounts reported as deferred outflows and deferred inflows of resources related to pensions being amortized for a period of greater than one year will be recognized in pension expense in succeeding years as follows:

2018 $ 22,3482019 24,2812020 (31,698)2021 (23,727)2022 27,895

Thereafter 208,376

Total $ 227,475

C. Other Post-Employment Benefits (OPEB)

The City of Green Cove Springs Post-Employment Benefits Plan is a single-employer healthcare plan administered by the City. Pursuant to Section 112.0801, Florida Statutes, the City is required to permit participation in the Plan to retirees and their eligible dependents at a cost to the retiree that is no greater than the cost at which coverage is available for active employees. Eligible individuals include all regular employees of the City who retire from active service under one of the pension plans sponsored by the City. Under certain conditions, eligible individuals also include spouses and dependent children. The Plan does not issue a publicly available financial report.

The City’s OPEB cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of the GASB Codification. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.


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The following table shows the components of the City’s annual OPEB activity for the year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation:

Annual Required Contribution $ 80,869 Interest on Net OPEB Obligation 11,535 Adjustment to Annual Required Contribution (16,736) Annual OPEB Cost 75,668 City Contributions Made (30,130) Increase (Decrease) in Net OPEB Obligation 45,338 Net OPEB Obligation (beginning of year) 379,444

Net OPEB Obligation (end of year) $ 430,734

Three-year trend information is summarized as follows:

Plan Fiscal Year Ended

September 30, Annual

OPEB Cost

Percentage of APC

Contributed

Net OPEB Obligation

(Asset)

2017 $ 75,668 39.8% $ 430,734 2016 75,668 39.8% 385,195 2015 75,668 39.8% 339,657

The funded status of the plan as of October 1, 2014, the most recent valuation date, was as follows:

Actuarial accrued liability (AAL) $ 506,735 Actuarial value of plan assets -

Unfunded actuarial accrued liability (UAAL) $ 506,735 Funded ratio (actuarial value of plan assets/AAL) 0.00% Covered payroll (Active plan members) $ 3,361,442 UAAL as a percentage of covered payroll 15.07%


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Actuarial valuations of an ongoing plan involve 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, mortality, and healthcare cost. Amounts determined regarding the funded status of the plan and the annual required contributions of the City are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The calculations are based on the type of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of cost between the City and the plan member at that point. The actuarial method and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Significant methods and assumptions were as follows:

Actuarial Valuation Date October 1, 2014 Actuarial Cost Method Entry Age Normal

Amortization Method Level percentage of payroll,

closed Remaining Amortization Period 30 years Actuarial Assumptions: Investment Rate of Return with Inflation 4.00%

Health Care Inflation 8.0% in 2015, trending to 4.5% in 2018

It should be noted that the percent of Annual OPEB Cost contributed is based upon actuarial calculations regarding the City’s and State’s contribution. The City’s contribution is dependent upon the estimated state contributions that are not known and received at the end of the fiscal year. The City has typically used the general fund to liquidate net pension obligations.

Additional trend information related to the retirement plan is presented in the required supplementary information, as listed in the table of contents. The information is presented to enable the reader to assess the progress made by the City retirement plans in accumulating sufficient assets to pay retirement benefits as they become due.

No actuarial accrued liability has been calculated for the Plan as the Plan utilizes the aggregate actuarial cost method.

(9) Risk Management:

The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the City carries commercial insurance. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. There were no significant reductions in coverage from the prior year.

The City is engaged in routine litigation incidental to the conduct of its municipal affairs. In the opinion of the City’s legal counsel, no legal proceedings are pending which would have a material adverse effect on the financial position or results of operations of the City.


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(10) Power Supply Agreements:

General

The City currently purchases all of its power requirements from the Florida Municipal Power Agency (FMPA) under an “All Requirements Contracts” (see below). FMPA, a legal entity organized in 1978 and existing under the laws of the State of Florida, consists of 28 member municipal electric systems, including the City. One of FMPA’s responsibilities is to develop electric projects and offer participation therein to its members. Its members individually determine in which project or projects they wish to participate. FMPA is governed by a Board of Directors on which the City is represented. The City, by agreement, has no equity interest in any of the assets owned by FMPA, or any obligation for liabilities of the Agency. FMPA does not constitute a joint venture nor does it meet the criteria for inclusion in the City’s reporting entity.

St. Lucie Project

In May 1983, FMPA issued $290,000,000 St. Lucie Project Revenue Bonds, Series 1983 (Series 1983) in order to purchase an 8.806% undivided ownership interest in Florida Power and Light Company’s (FP&L) St. Lucie Unit No. 2. In March 1986, FMPA issued $284,810,000 in St. Lucie Project Refunding Revenue Bonds, Series 1986, to advance refund $250,910,000 of the outstanding Series 1983 bonds in a legal defeasance of that portion of the Series 1983 bonds. In July 1992, FMPA issued $326,090,000 St. Lucie Project Refunding Revenue Bonds, Series 1992 (Series 1992), to advance refund in the prior two issues. In 2000 and 2002, FMPA issued two additional refunding bonds to partially refund the 1992 issue. In addition, FMPA has issued several additional bonds. At September 30, 2016, the total outstanding amount related to the St. Lucie Project is $321,595,000. The City is contingently liable for 1.757% of the total amount of outstanding debt, (approximately $5,650,424) at September 30, 2016. Pursuant to a power sales contract and a project support contract with FMPA, the City acquired an entitlement share of 1.757% (approximately 1.241MW) of FMPA’s 8.806% interest in St. Lucie No. 2. Payments are required by the City whether or not the St. Lucie Project is operable or operating, and are due each month based upon a budget prepared by FMPA, adjusted annually. Total costs under this contract during 2017 were $921,935.

All Requirements Power Supply Agreement

On February 12, 1985, the City, along with several other municipalities (the project participants), entered into separate agreements with FMPA, whereby FMPA agreed to sell and deliver to the project participants, and the project participants agreed to purchase and receive from FMPA, all electric capacity and energy which the project participants shall require (excluding St. Lucie) for the operation of their municipal electric systems. The City has given FMPA notice pursuant to Section 2 of the All-Requirements Power Supply Contract that the term of their contract will not renew automatically each year after the initial contract term. The term of the contract is now fixed and will terminate on October 1, 2037. Effective December 31, 2014, the City has issued a Contract Rate of Delivery (CROD) notice to FMPA. This notice will fix capacity of power being provided by FMPA to the City within a five-year time frame. The fixed capacity will be placed into effect January 1, 2020, and will be determined by measurement of the peak demand of the City during the 12 months preceding the date one month prior to the effective date of CROD.

Power rates are determined by the Board, subject to the approval of the project participants, but must be sufficient to meet FMPA’s revenue requirements. Charges to the City are payable solely from utility revenues and in no way can FMPA compel the City to exercise its taxing power. Total costs under this contract during 2017 were $7,919,768.


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(11) Contingencies:

Amounts received or receivable from grantor agencies in current and prior years are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute, a liability of the applicable fund(s). The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial.

The City is involved in various legal proceedings incidental to the conduct of its affairs. It is the City’s policy to accrue for amounts related to these legal matters if it is possible that a liability has been incurred and an amount is reasonably estimable. At September 30, 2017, no amounts have been accrued.

On March 17, 2009, the City entered into an agreement with the Florida Communities Trust (FCT), an agency within the State of Florida Department of Economic Opportunity, formerly the Department of Community Affairs, which imposes several terms and conditions with regards to land acquired through a grant from FCT. The City has committed to maintaining the land perpetually as well to making certain improvements which include, but are not limited to, providing recreational facilities including a skateboard park, swimming pool, dog park, tennis, racquetball and shuffleboard courts, and baseball and soccer fields, planting native vegetation throughout a significant portion of the land, and developing stormwater facilities to improve the quality of surface waters. In addition, a staffed recreation center is to be developed on the project site to provide year-round education classes or programs.

(12) Recent Accounting Pronouncements:

The Governmental Accounting Standards Board (GASB) has issued several pronouncements that have effective dates that may impact future financial statements. Listed below are pronouncements with required implementation dates effective for fiscal years subsequent to September 30, 2017, that have not yet been implemented. Management has not currently determined what, if any, impact implementation of the following will have on the City’s financial statements:

(a) GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, in June 2015, which establishes standards for recognizing and measuring liabilities, deferred outflows or resources, deferred inflows of resources, and expense/expenditures. GASB 75 seeks to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions. The provisions in GASB 75 are effective for fiscal years beginning after June 15, 2017.

(b) GASB issued Statement No. 81, Irrevocable Split-Interest Agreements, in March 2016, which requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. GASB 81 enhances comparability of financial statements by providing accounting and financial reporting guidance for irrevocable split-interest agreements in which a government is a beneficiary.The provisions in GASB 81 are effective for fiscal years beginning after December 15, 2016.


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(12) Recent Accounting Pronouncements: (Continued)

(c) GASB issued Statement No. 83, Certain Asset Retirement Obligations, in November 2016. GASB 83 addresses accounting and financial reporting for certain asset retirement obligations (AROs), which are legally enforceable liabilities associated with the retirement of a tangible capital asset. The provisions in GASB 81 are effective for periods beginning after June 15, 2018.

(d) GASB issued Statement No. 84, Fiduciary Activities, in January 2017. GASB 84 improves guidance regarding the identification and reporting of fiduciary activities. The provisions in GASB 84 are effective for periods beginning after December 15, 2018.

(e) GASB issued Statement No. 85, Omnibus 2017, in March 2017. GASB 85 improves guidance addressing several different accounting and financial reporting issues identified during the implementation and application of certain GASB pronouncements. The provisions in GASB 85 are effective for periods beginning after June 15, 2017.

(f) GASB issued Statement No. 86, Certain Debt Extinguishment Issues, in June 2017. GASB 86 provides guidance for transactions in which cash and other monetary assets acquired with only existing resources—resources other than the proceeds of refunding debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The provisions in GASB 86 are effective for periods beginning after June 15, 2017.

(g) GASB issued Statement No. 87, Leases, in June 2017. GASB 87 increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The provisions in GASB 86 are effective for periods beginning after December 15, 2019.

(h) GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, in April 2018. GASB 88 expands debt disclosure requirements related to direct borrowings and direct placements, while also clarifying which liabilities should be included when disclosing information related to debt. The provisions in GASB 86 are effective for periods beginning after December 15, 2019.

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF FUNDING PROGRESS – OPEB


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Other Post Employment Benefit PlanUnfunded or Unfunded or

Actuarial Actuarial Actuarial (Assets in (Assets in Excess of)Valuation Value of Accrued Liability Excess of) Funded Covered AAL as a Percentage

Date Assets (AAL)--Entry Age AAL Ratio Payroll of Covered Payroll (a) (b) (b-a) (a/b) (c) ((b-a)/c)

10/1/2014 $ - $506,735 $506,735 0.00% $3,361,442 15.1%10/1/2011 - 408,964 408,964 0.00% 3,484,107 11.7%10/1/2008 - 609,131 609,131 0.00% 3,438,653 17.7%

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF CONTRIBUTIONS FROM THE EMPLOYER – OPEB


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Other Post Employment Benefit PlanAnnual Required

City Contribution

Actual City Contribution

Year Ended Sept 30,

Percentage Contribution

2017 $ 75,668 $ 30,130 39.80%2016 75,668 30,130 39.80% 2015 75,668 30,130 39.80% 2014 66,463 27,582 41.50%

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

POLICE OFFICERS’ PENSION PLAN SEPTEMBER 30, 2017

(UNAUDITED)

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For the Year Ended September 30, 2017 2016 2015 2014 Total Pension Liability Service cost $ 219,094 $ 219,094 $ 150,177 $ 150,177Interest 274,502 215,822 216,948 (49,064)Difference between actual and expected experience - (136,512) (18,269) (1,935)Employee contributions - - - (7,497)Benefit payments (41,910) (19,062) (18,780) (13,844)Assumption changes - 557,241 - - Administrative expenses - - - 23,305Net change in total pension liability 232,592 836,583 330,076 101,142Total pension liability – beginning 3,722,971 2,886,388 2,556,312 2,455,170

Total pension liability – ending (a) $ 4,174,657 $ 3,722,971 $ 2,886,388 $ 2,556,312

Total Fiduciary Net Position Contributions – employer $ 181,998 $ 235,252 $ 212,216 $ 195,747Contributions – state 93,609 - - - Contributions – employee 10,155 - - - Net investment income (loss) 545,018 291,007 (4,872) 256,130Benefit payments, including refunds of contributions (19,348) (19,062) (18,780) (22,317)Administrative expense (15,546) (27,174) (16,444) (23,305)Net change in plan fiduciary net position 795,886 480,023 172,120 406,255Plan fiduciary net position – beginning 3,975,255 3,495,232 3,323,112 2,916,857

Plan fiduciary net position – ending (b) $ 4,771,141 $ 3,975,255 $ 3,495,232 $ 3,323,112

Net pension liability – ending (a) - (b) $ (596,484) $ (252,284) $ (608,844) $ (766,800)

Plan fiduciary net position as a percentage of the total pension liability 114.29% 106.78% 121.09% 130.00%

Covered employee payroll $ 1,015,500 $ 795,911 $ N/A $ 693,444Net pension liability as a percentage of covered

employee payroll -58.74% -31.70% N/A -110.58%

*Information only available since GASB 67 implementation in FY14. Additional years’ information will be added as it becomes available until a 10-year history is shown. **Contributions in FY16 and in years prior are not split out between employer, state, and employee.

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS


(UNAUDITED)

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Fiscal Year

Actuarially Determined

Contribution (ADC)

Contributions in Relation to

ADC

Contribution Deficiency (Excess)

Covered Payroll

Contributions as Percentage of Employee

Payroll

2017 $ 276,728 $ 275,607 $ (1,121) $ 1,015,500 27.14%2016 230,927 226,777 4,150 795,911 28.49%2015 203,387 203,965 (578) N/A N/A2014 188,250 193,375 (5,125) 693,444 27.89%2013 231,594 231,594 - N/A N/A2012 218,682 218,682 - 719,300 30.40%2011 218,693 218,693 - 727,111 30.08%2010 249,232 249,232 - 725,727 34.34%2009 204,951 204,951 - N/A N/A2008 197,286 197,286 - 651,768 30.27%

Notes to Schedule: Valuation Date: 10/01/2016 Actuarially determined contribution rates are calculated as of October 1, one year prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to determine contribution rates: Funding Method: Current: Aggregate Method (Level Percentage) Amortization Method Level Percentage Remaining Amortization Period: 30 years Asset Valuation Method: Market value Inflation: 2.92% per year. Salary Increases: 4.0% per year. Interest Rate: 7.0% per year, compounded annually, net of investment-related expenses. Cost-of-living Adjustments: 1.50% Payroll Growth: None. Retirement Age: Normal: Age 55 with 6 years of service or any age with 25 years of service

Early: Age 50 with 10 years of service Mortality: Sex-distinct rates set forth in the RP-2000 Mortality Table for annuitants,

projects to 2015 by Scale AA, as published by the Internal Revenue Services (IRS) for purposes of Internal Revenue Code (IRC) Section 430; future generation improvements in mortality have not been reflected

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS


(UNAUDITED)

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Year

Annual Money-

Weighted Rate of Return

2017 13.29% 2016 8.11% 2015 -0.14% 2014 8.39%

*Information only available since GASB 67 implementation in FY14. Additional years’ information will be added as it becomes available until a 10-year history is shown.

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY – FRS/HIS


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2017 2016 2015

Florida Retirement System (FRS) Proportion of the net pension liability (NPL) 0.007345438% 0.008451778% 0.007974291%Proportionate share of the NPL $ 2,172,731 $ 2,134,081 $ 1,029,986 Covered payroll 2,330,206 2,484,644 2,386,450Proportionate share of the NPL as percentage of covered

payroll 93.24% 85.89% 43.16%Plan fiduciary net position as a percentage of the NPL 83.89% 84.88% 92.00%


Proportion of the net pension liability (NPL) 0.007194699% 0.008436522% 0.007652351%Proportionate share of the NPL $ 769,290 $ 983,242 $ 780,419Covered payroll 2,330,206 2,484,644 2,386,450Proportionate share of the NPL as percentage of covered

payroll 33.01% 39.57% 32.70%Plan fiduciary net position as a percentage of the NPL 1.64% 0.97% 0.50%

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS – FRS/HIS


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For the Plan Year ended June 30, 2017 2016 2015

Florida Retirement System (FRS)

Contractually required contribution $ 207,762 $ 206,110 $ 194,420Contributions in relation to contractually required contribution 207,762 206,110 206,890

Contribution deficiency (excess) $ - $ - $ (12,470)

Covered payroll $ 2,330,206 $ 2,484,644 $ 2,386,450Contributions as percentage of covered payroll 8.92% 8.30% 8.15%


Contractually required contribution $ 38,681 $ 43,243 $ 29,252Contributions in relation to contractually required contribution 38,681 43,243 32,711

Contribution deficiency (excess) $ - $ - $ (3,459)

Covered payroll $ 2,330,206 $ 2,484,644 $ 2,386,450Contributions as percentage of covered payroll 1.66% 1.74% 1.23%

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SUPPORTING SCHEDULES

Financial schedules are presented to provide greater detailed information than reported in the preceding financial statements. This information, in many cases, has been spread throughout the report and is brought together here for greater clarity. Financial schedules are not necessary for fair presentation in conformity with generally accepted accounting principles.

CITY OF GREEN COVE SPRINGSCOMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS

Capital ProjectSpecial Revenue Funds Fund

TotalBuilding Special Law General Capital NonmajorPermit Enforcement Improvement GovernmentalFund Fund Fund Funds

ASSETSEquity in pooled cash and investments 566,781$ 65,286$ 27,166$ 659,233$

Total assets 566,781$ 65,286$ 27,166$ 659,233$

LIABILITIESAccounts payable and accrued liabilities 122,931$ -$ -$ 122,931$

Total liabilities 122,931 - - 122,931

FUND BALANCESRestricted for:

Public safety 443,850 65,286 - 509,136 Assigned to:

Capital improvements - - 27,166 27,166 Unassigned - - - -

Total fund balances 443,850 65,286 27,166 536,302

Total liabilities and fund balances 566,781$ 65,286$ 27,166$ 659,233$

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CITY OF GREEN COVE SPRINGSCOMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCENONMAJOR GOVERNMENTAL FUNDS


Capital ProjectSpecial Revenue Funds Fund

TotalBuilding Special Law General Capital NonmajorPermit Enforcement Improvement GovernmentalFund Fund Fund Funds

REVENUESLicenses and permits 385,505$ -$ -$ 385,505$ Fines and forfeitures - 12,856 - 12,856 Miscellaneous 13,134 480 - 13,614

Total revenues 398,639 13,336 - 411,975


General government 256,894 - - 256,894 Public safety - 422 - 422

Capital outlay 14,532 - - 14,532 Debt service:

Principal retirement - - 136,000 136,000 Interest and fiscal charges - - 23,939 23,939

Total expenditures 271,426 422 159,939 431,787 Excess (deficiency) of revenues over

expenditures 127,213 12,914 (159,939) (19,812)

Other financing sources (uses)Transfers in - - 159,939 159,939 Transfers out - - - -

Total other financing sources (uses) - - 159,939 159,939

Net change in fund balances 127,213 12,914 - 140,127

Fund balances, beginning of year 316,637 52,372 27,166 396,175

Fund balances, end of year 443,850$ 65,286$ 27,166$ 536,302$

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CITY OF GREEN COVE SPRINGSSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Federal Agency / Pass-Through Entity / CFDA Contract /Federal Project Number Grant Number Expenditures

Federal Awards

State of Florida Department of Environmental ProtectionDirect Programs: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2017-JAGD-CLAY-1-F8-077 1,698$ Total U.S. Department of Justice 1,698

U.S. Department of Agriculture Forest ServiceDirect Programs: Cooperative Forestry Assistance 10.664 022780 14,682 Total U.S. Department of Agriculture Forest Service 14,682

U.S. Environmental Protection AgencyIndirect Programs:

Pass through Florida Division of Environmental Protection Capitalization Grants for Clean Water State Revolving Funds 66.458 CS-120001-016 532,300 Total U.S. Environmental Protection Agency / Clean Water State Revolving Fund Cluster 532,300

Federal Emergency Management AgencyIndirect Programs:

Pass through Florida Division of Emergency Management Hurricane Matthew Disaster Grant - Public Assistance 97.036 17-PA-U5-04-20-01-165 65,988 Total Federal Emergency Management Agency 65,988

U.S. Department of Homeland SecurityIndirect Programs:

Pass through Florida Division of Emergency Management Hazard Mitigation Grant -MLK Blvd. Drainage Improvements Project Phase II 97.039 16HM-6B-04-20-02-354 41,149 Hazard Mitigation Grant -Citizen Street Drainage Improvements Project Phase II 97.039 16HM-6B-04-20-02-353 454,590 Total U.S. Department of Homeland Security 495,739

Total Federal Awards 1,110,407$

The accompanying notes to the schedule of expenditures of federal awards are an integral part of this statement.

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CITY OF GREEN COVE SPRINGS, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


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(1) Basis of Presentation:

The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Green Cove Springs (the City), and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

(2) Summary of Significant Accounting Policies:

Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.

(3) De Minimis Indirect Cost Rate Election:

The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.

(4) Subreceipients:

During the year ended September 30, 2017, the City provided no federal awards to subrecipients.

(5) Deferred FEMA Expenditures:

During the fiscal year ended September 30, 2017, the City incurred substantial costs related to Hurricane Matthew and Hurricane Irma. Per the OMB Compliance Supplement, any reimbursements from the Federal Emergency Management Agency (FEMA) under CFDA 97.036 are not to be recognized as expenditures for purposes of the Schedule of Expenditures of Federal Awards until the respective Project Worksheets (PW) have been approved. At September 30, 2017, none of the City’s PWs from these storms had been approved by FEMA, except those related to cost category F costs for Hurricane Matthew of $76,986. $529,522 of expenditures and the related revenues have been recorded for financial statement purposes and will be recognized on the Schedule of Expenditures of Federal Awards in future years once approved by FEMA. Because only $76,986 of the Hurricane Matthew costs were obligated in FY2017, only that amount will be recognized on the FY2017 SEFA.

(6) Contingency:

Project expenditures are subject to audit and adjustment. If any expenditures were to be disallowed by the grantor agency as a result of such an audit, any claim for reimbursement to the grantor agency would become a liability of the City. In the opinion of management, all project expenditures included on the accompanying schedule are in compliance with the terms of the project agreements and applicable federal and state laws and regulations.

CITY OF GREEN COVE SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS


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A. Summary of Auditors’ Results:

Financial Statements:

Type of audit report issued on the financial statements: Unmodified

Internal control over financial reporting:

Material weakness(es) identified? yes X no

Significant deficiency(ies) identified? X yes none reported

Noncompliance material to financial statements noted? yes X no

Federal Awards:

Internal control over major Federal programs:

Material weakness(es) identified? yes X no

Significant deficiency(ies) identified? yes X none reported

Type of auditor’s report issued on compliance for major Federal programs: Unmodified

Any audit findings disclosed that are required to be reported for federal award programs in accordance with Uniform Guidance? yes X none reported

Auditee qualified as a low-risk auditee? yes X no

Dollar threshold used to distinguish between type A and type B programs: $750,000

Identification of major Federal programs:

CSFA Number Program Name

66.458 Capitalization Grants for Clean Water State Revolving Funds

CITY OF GREEN COVE SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS


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B. Financial Statement Findings:

2017-001 Cutoff of Expense Transactions

Criteria: Generally accepted accounting standards dictate that expenditures should be reported in the period incurred, regardless of when paid.

Condition: We noted a significant audit adjustment was required to accrue additional 2017 expenditures in the sewer utility fund along with the related accounts payable and retainage payable liabilities.

Cause: The expenses that did not get accrued were not properly identified as fiscal year 2017 expenditures based on review of the invoice date and service period when the invoice was processed.

Effect: Had the audit adjustments not been recorded the related capital expenditures toward construction in progress and related liabilities at year-end would have been significantly understated.

Recommendation: We recommend all invoices received and other payments made near year-end be reviewed for proper cutoff to ensure all items are recorded in the appropriate accounting period.

C. Federal Program Findings and Questioned Costs: None.

D. Summary Schedule of Prior Audit Findings: Not applicable as there are not prior year findings.

E. Corrective Action Plan: See Management’s Response to Current Year Findings as listed in the table of contents.

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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN

ACCORDANCE WITH THE UNIFORM GUIDANCE


Report on Compliance for Each Major Federal Project

We have audited the City of Green Cove Springs, Florida’s (the City) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended September 30, 2017. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.


Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance 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; and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

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Opinion on Each Major Federal Program

In our opinion, the City complied, in all material respects, with the requirements referred to above that could have a direct and material effect on each of its major federal program for the year ended September 30, 2017.

Report on Internal Control over Compliance

Management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.


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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


We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Green Cove Springs (the City), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated April 30, 2018.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City'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’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’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 a 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, 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be 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 over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described as item 2017-001 in the accompanying schedule of findings and questioned costs that we consider to be a significant deficiency.

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Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City'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.

City of Green Cove Springs, Florida’s Response to Findings

The City’s response to the findings identified in our audit is described in the accompanying management’s response as listed in the table of contents. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

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 results 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.


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INDEPENDENT AUDITORS’ MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550, RULES OF THE STATE OF FLORIDA

OFFICE OF THE AUDITOR GENERAL


Report on the Financial Statements

We have audited the basic financial statements of City of Green Cove Springs, Florida (the City), as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated April 30, 2018.


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; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General.

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance in Accordance with the Uniform Guidance; schedule of findings and questioned costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated April 30, 2018, should be considered in conjunction with this management letter.

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 prior year comments.

Official Title and Legal Authority

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 for the primary government and component units of the reporting entity is disclosed in Note 1 of the basic financial statements.

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Financial Condition and Management

Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and report the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific conditions met. In connection with our audit, we determined that the City, 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 the City’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.

Section 10.554(1)(i)2., Rules of the Auditor General, requires us to address in the management letter any recommendations to improve financial management. In connection with our audit, we had no such recommendations.

Annual Financial Report

Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and report the results of our determination as to whether the annual financial report for the City for the fiscal year ended September 30, 2017, 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, 2017. In connection with our audit, we determined that these two reports were in agreement.

Other Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to 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 Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, City Council, management, others within the City, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.


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INDEPENDENT ACCOUNTANTS’ EXAMINATION REPORT

To the Honorable Mayor, City Council, and City Manager, City of Green Cove Springs:

We have examined the City of Green Cove Springs’s (the City) compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, for the year ended September 30, 2017. Management is responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied with Section 218.415, Florida Statutes, Local Government Investment Policies, for the year ended September 30, 2017, in all material respects. An examination involves performing procedures to obtain evidence about the City’s compliance with those requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of risks of material noncompliance with those requirements, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

In our opinion, the City of Green Cove Springs complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2017.


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AUDITEE’S RESPONSE TO: Independent Auditors’ Management Letter April 30, 2018 The Independent Auditors’ Findings provided comments and recommendations for improved financial management accounting procedures. The following is Management’s response. The Auditors’ comment numbers and descriptions are included as reference. 2017-001 Cutoff of Expenditures Response

Florida Department of Environmental Protection

REQUEST FOR INCLUSION ON THEDRINKING WATER PRIORITY LIST

Form RFI-DW1; Incorporated in paragraph 62-552.300(1)(a), F.A.C. Page 1 of 5 Effective Date: July 2017

Drinking Water State Revolving Fund Program Douglas Building, 3900 Commonwealth Blvd, Tallahassee, Florida 32399-3000

The information contained in this Request for Inclusion (RFI) application is used to determine project eligibility and priority scoring. The priority score is used to rank projects for placement on the State Revolving Fund (SRF) priority list. Only projects placed on the fundable portion of the priority list receive consideration for a loan. Please note that costs incurred before the adoption of the project on the fundable portion of the priority list at a public meeting are not eligible for reimbursement. The loan service fee, based on a percentage of the loan amount, will be determined in accordance with 62-552.200(18), F.A.C.

Please Note: This application must be completed in its entirety before it can be processed to determine sponsor eligibility.

1. Applicant's Name and Address.

Project Sponsor: Contact Person: Title:

(street address)

(city) (county) (zip code)

(telephone) (ext.) (e-mail)

Contact Person Address (if different):

(street address) (city) (state) (zip code)

2. Name and Address of Applicant's Consultant (if any).

Firm: Contact Person: Title:

(street address)

(city) (zip code)

(telephone) (ext.) (e-mail)

3. Type of Loan Requested in this Application. Select only one loan category.

Planning Loan Design Loan Planning and Design Loan Construction Loan

Select Type of Project: Design/Bid/Build Design/Build (D/B) Construction Manager at Risk (CMAR)

Eligibility for a Loan. In order to be considered for a priority listing, the following conditions must be met:The respondent to this solicitation must qualify as a “project sponsor” as defined in 62-552.200(26), F.A.C.;The minimum construction loan amount is $75,000;The project sponsor must agree to submit biddable plans and specifications within 1-year after being placed on the fundableportion of the priority list to qualify for a combined planning and design loan; and

City of Green Cove Springs Mike Null Asst. City Mgr.321 Walnut Street

Green Cove Springs Clay 32043

(904) 297-7500 3324 [email protected]

Mittauer & Associates, Inc. Jason R. Shepler, P.E. VP-Environ. Services

580-1 Wells Road

Orange Park 32073

(904) 278-0030 [email protected]

REQUEST FOR INCLUSION ON THE DRINKING WATER PRIORITY LIST


The project is part of a public water system as defined in 62-552.200(27), F.A.C., and may include drinking water supply,storage, transmission, treatment, disinfection, distribution, residuals management, and appurtenant facilities.

4. Principal Forgiveness Percentage (PF%). Is project sponsor eligible for a loan with principal forgiveness? Yes No(see eligibility requirements below). All applicants must complete a. and b. below. a. Is project sponsor applying for a planning and/or design loan with principal forgiveness? Yes No . If yes, then PF 50%.

Only a sponsor that directly qualifies as a financially disadvantaged small community is eligible for a planning and/or design loan with principal forgiveness.

b. Is project sponsor applying for a construction loan with principal forgiveness? Yes No . If yes, then calculate PF%using the formula: PF% = 1760/9 – 160 x (MHI/SMHI) – 7/4500 x P. All applicants must complete 1. through 5. below.

1. Median household income (MHI): (per recent ACS 5-yr estimate U.S. Census Bureau or verifiable estimates)2. State median household income (SMHI): (per recent ACS 5-year estimate U.S. Census Bureau)3. Population (P) served: (no. of service connections x persons/connection, include proposed connections)4. Calculated PF% for a construction loan:

20% principal forgiveness if MHI SMHI and P 10,000 or 0% if MHI > SMHI, unless sponsor is specifically exempted.A maximum of 50% principal forgiveness if the sponsor is connecting a disadvantaged community or has a separate watersystem as defined below.

5. Select Type of Project Sponsor:Disadvantaged/Small Disadvantaged Only Separate or Connecting Disadvantaged/Small Other

Please note that the calculated PF% is an estimate and the actual percentage will be determined by the Department. The maximum principal forgiveness percentage for a construction loan is 90% and the minimum is 20%. A qualifying sponsor is eligible to receive a maximum 50% principal forgiveness for the costs to complete an asset management plan in accordance with 62-552.700(7), F.A.C., if part of a construction loan. The amount of loan available with principal forgiveness for a project is dependent upon allocated funds for the fiscal year.

Eligibility for a loan with principal forgiveness. In order to be considered for a loan with principal forgiveness, the following conditions must be met:

The project sponsor must qualify as a financially disadvantaged small community public water system as defined in Rule 62-552.200, F.A.C., unless the sponsor is specifically exempted from this requirement.The median household income (MHI) of the sponsor’s service area must be less than the state median household income(SMHI) as reported from the most recent census data or from verifiable estimates, unless the sponsor is specifically exemptedfrom this requirement.The population (P) of the sponsor’s service area must be less than 10,000 (including future connections proposed by theproject), unless the sponsor is specifically exempted from this requirement.The project sponsor shall have only one open loan with principal forgiveness. A loan shall be considered open until the finaldisbursement has been paid by the department.A sponsor that connects less than 250 residential private wells or connects an existing public water system with less than 250service connections is eligible for a construction loan with principal forgiveness up to a maximum of 50% if the connectedcommunity qualifies as financially disadvantaged.A sponsor that owns and operates a separate, non-interconnected, public water system that qualifies as a financiallydisadvantaged small community, regardless of the number of systems owned and operated by the sponsor, is eligible for aconstruction loan with principal forgiveness for that system up to a maximum of 50%.A financially disadvantaged community with a population of 10,000 or more is eligible for a construction loan with 20%principal forgiveness if dollars are available after funding all eligible financially disadvantaged small community systems.

5. Interest Rate Percentage.The interest rate for a loan with the Department is determined using the formula:

% of MR = 40 x (MHI/SMHI) + 15% of MR = Percentage of Market Rate.

Calculate and complete the % of MR below:% of MR for a loan:

(35% % of MR 75%)

20% principal fl orgivenessff if Mf HIMM SMHIHH and P 10,000 or 0% ifi MHIMM > SMHI, II

(35% % of MR 75%)

p g yThe maximum principal forgiveness percentage for a construction loan is 90% and the minimum is 20%.

$49,969$50,883

8,75024.82%

54.28%



Please note that the calculated % of MR is an estimate and the actual interest rate will be determined by the Department. The market rate shall be established using the Thomson Publishing Corporation’s “Bond Buyer” 20-Bond GO Index. Projects with adrinking water supply component as defined in 403.8532(9)(a), F.S. or a water conservation component per 62-552.300(1)(e)1.d.;and sponsors with an accepted/implemented asset management plan may qualify for additional interest rate reductions in accordance with 62-552.300(6)(b), F.A.C. Interest rate reductions are also available for implementation of EPA’s Davis-Bacon (DB) and American Iron & Steel (AIS) requirements. The interest rate for a loan shall not be less than zero percent.

6. Base Priority Score. Each project shall receive a base priority score (BPS) dependent on the weighted average of itscomponents. The BPS shall be determined using the below formula where CPS means the component priority score and CCCmeans component construction cost.

BPS = [CPS1 x CCC1 + … + CPSn x CCCn]/Total Construction Cost

Select each component and component score in Table 1 below that applies to the project, fill in the estimated construction cost,and calculate the base priority score.

Component priority scores that are based on contaminant levels must be justified by sample analytical data (see exception innotes at bottom of Table 1). The date that samples were collected must be less than 24-months from the date of submittal of aRequest for Inclusion. The sampling data must show an ongoing and current problem with a drinking water quality standard.The project sponsor must provide documentation demonstrating that contaminant levels (e.g. disinfection byproducts) cannotbe reduced by adjusting system operations, if applicable.A compliance-1 category component score of 400 points, if selected in Table 1, must be supported by documentationdemonstrating the need for the project; otherwise, a component score of 300 points shall be assigned.

Table 1 Project Component(Check all items that apply)

Component Priority Score

Component Construction Cost

Acute Public Health Risk1a. E-Coli or Fecal Coliform Exceed MCL (62-550.310(5), F.A.C.)1b. Nitrate, Nitrite, or Total Nitrogen Exceed MCL (62-550.310(1), F.A.C., Table 1)1c. Lead or Copper Exceed Action Level (62-550.800, F.A.C)1d. Surface Water Filtration and Disinfection Noncompliance (62-550.817(2), F.A.C.)

800 points

Potential Acute Public Health Risk2a. Nitrate, Nitrite, or Total Nitrogen 50% of MCL (62-550.310(1), F.A.C., Table 1) 2b. Microbiologicals Exceed MCL (62-550.310(5), F.A.C.) 2c. Surface Water Enhanced Filtration and Disinfect. Noncompliance (62-550.817(3), F.A.C.)2d. State Health Certification of Acute Health Risk, Unregulated Microbiological Contaminant2e. Violation of Disinfection Requirement (62-550.310(2), F.A.C., Table 2)

700 points

Chronic Public Health Risk3a. Inorganic or Organic Contaminant Exceed MCL (62-550.310(1 & 4), F.A.C., Tables 1,4,5)3b. Disinfection Byproducts Exceed MCL (62-550.310(3), F.A.C., Table 3)3c. Radionuclides Exceed MCL (62-550.310(6), F.A.C)

600 points

Potential Chronic Public Health Risk4a. Inorganic or Organic Contaminant 50% of MCL (62-550.310(1 & 4), F.A.C., Tables 1,4,5)4b. Disinfection Byproducts 80% of MCL (62-550.310(3), F.A.C., Table 3)4c. State Health Certification of Chronic Health Risk, Unregulated Chemical Contaminant

500 points

Compliance-1/System does not meet or requires the following:5a. Infrastructure upgrade to facilities undersized, exceed useful life, or with equipment failures5b. Insufficient water supply source, treatment capacity, or storage5c. Water distribution system pressure less than 20 psi5d. Eliminate dead ends and provide adequate looping in a distribution system5e. Replace distribution mains to correct continual leaks, pipe breaks, and water outages5f. New water system or extension of existing system to replace contaminated/low yield wells5g. Lack of significant safety measures (e.g. chemical containment)

400 points



5h. Secondary Contaminant MCL Exceedance (62-550.320, F.A.C.)5i. Drinking water supply project as defined in 403.8532(9)(a), F.S.

Compliance-2/System does not meet or requires the following:6a. Treatment, Storage, Power, and Distribution Requirements (62-555.320, F.A.C)6b. Minimum Required Number of Wells (62-555.315(2), F.A.C)6c. Well Set-back and Construction Requirements (62-555.312 and 62-555.315, F.A.C)6d. Cross-Connection Control Requirements (62-555.360, F.A.C)6e. Physical Security Project Documented in a Vulnerability Analysis6f. Consolidation or regionalization of public water systems6g. Water/Energy Conservation Project

300 points

All Other Projects 100 points

Note: If item 2d. or 4c. of Table 1 is selected, then a State Health Officer must complete the form “Certification of a Public Health Risk”. If 50% or more of residential wells meet contaminant levels indicated in Table 1, then check the appropriate public health risk category that applies. Flooded wells and wells under the direct influence of surface water are considered an unregulated microbiological potential acute public health risk and require substantiated documentation of occurrence in lieu of sampling data.

7. Affordability Score. The extent of affordability existing in a small community to be served by the project shall be reflected in thepriority score. Points shall be awarded based upon two affordability criteria: namely, median household income (MHI) andservice area population (P). These points are to be added to the base priority score. Calculate the affordability score using thefollowing formula:

Affordability Score = (MHI Score + Population Score)MHI Score = 100 x (1.00 – MHI/SMHI)

Zero MHI score 75, rounded to nearest wholenumber Population Score = 50.0 - (P/200)

Population score zero, rounded to nearest whole number

8. Water Conservation Score. A project sponsor with a qualifying water conservation project is eligible to receive an additional100 points added to their priority score if the sponsor provides a water conservation plan in accordance with EPA’s WaterConservation Plan Guidelines web site https://www3.epa.gov/watersense/pubs/guide.html, document number EPA-832-D-98-001.The sponsor must also demonstrate that the proposed project meets the objective of the conservation plan.

9. Total Priority Score. The total priority score equals the base priority score plus the affordability score and water conservationscore. Calculate and complete a. through d. below.a. Base priority score: points.b. Affordability score: points.c. Water conservation score: points.d. Total priority score: points (sum of items a. through c.)

10. Estimated Project Cost. Complete a. through k. below, including loan amount requested.(Indicate $0 if activity is not applicable)

Project Activity CostPlanning.Design (not applicable if a D/B project).Technical services per 62-552.300(3)(h), F.A.C., for planning and design.Administration before bid opening (only include if not part of procurement in ‘f’ below).Eligible land (necessary land divided by total land times purchase price).Constr., equip., material, demo. & related procurement (include design if D/B project)Administration during construction and after bid opening.Construction contingency (10% of ‘f’, only applicable for Design/Bid/Build projects).Technical services during construction and after bid opening.

Zero MHI score 75,

Population score zero,

$4,850,000

30080

308

Complete$288,700

$57,500$10,600

N/A$3,792,300

$93,000$380,000$197,900

2 6



j. Asset management plan per 62-552.700(7), F.A.C.k. Total project costs (sum of a. through j.).

Loan amount requested by the sponsor in this RFI (assume no principal forgiveness).

List all funding sources for this project:

11. Project Schedule. Complete a. through d. below.

Project Activity ( M/ D/YY)

a. Submit planning documents.b. Submit design/bid documents or RFQ/RFP for CMAR & D/B projects.c. Start construction.d. Complete construction.

12. Project Information. Provide the following information, if applicable.(Check all items that are attached to this RFI)

Project description, location with lat/long (degrees), water system PWS ID, and project need (this is a required attachment). Map of city/county limits, existing/proposed service area, and project area (this is a required attachment). Lab data, lab data w/operational records, or substantiated documentation in lieu of lab data for public health risk projects. The form “Certification of a Public Health Risk” completed by a State Health Officer. Supporting documentation for projects identified under the compliance-1 categories of Table 1.DWSRF business plan for a design or construction loan, not a planning or combined planning/design loan. Detailed project schedule showing plans/specs completion in 1-year of loan execution for a combined planning/design loan.MHI supporting documentation if MHI not taken from the most recent ACS 5-yr estimate of the U.S. Census Bureau. Water Conservation Plan, including demonstration that project meets plan objectives.

13. Certification by an Authorized Representative. I certify that this form and attachments have been completed by me or atmy direction and that the information presented herein is, to the best of my knowledge, accurate and true.

(date) (e-mail)

(print name) (print title)

Email the completed RFI form with attachments to [email protected] or mail to the Florida Department of Environmental Protection, State Revolving Fund Program, 3900 Commonwealth Blvd, Tallahassee, Florida 32399-3000.

For DEP Use Only

Project Number

Total Priority Score

Total Project Cost

Pop MHI SMHI PF% % of MR

AttachmentsComplete?

RFI Complete?

DW Yes No Yes No

DEP Comments:

$30,000$4,850,000

Water System Revenues

Complete

12/31/20

08/31/21

08/31/22

(signature)

Steven Kelley

[email protected]

Mayor

$ 356,800

RFI PROJECT DESCRIPTION SUMMARY

Enclosed separately is a Water Facilities Plan (“Plan”) which provides a comprehensive

review of the City’s potable water infrastructure (“Water System”). The City desired to

complete the Plan to:

1. Develop an approach to address the City’s Water System needs as it relates to:

existing system deficiencies, rehabilitation needs, capacity upgrades, and potential

modifications for more efficient service;

2. Review environmental and growth related issues as it relates to the North Florida

Regional Water Supply findings and recommendations; and

3. Provide direction related to Water System expansion needs to serve existing and

future residents as well as utility customers beyond the municipal limits.

The City’s Public Water System (PWS) Identification Number is 2100437. The City’s

Overall Service Area Map is provided as Figure 1.

Water Infrastructure Improvement Summary

The Plan reviewed a variety of infrastructure needs. The most critical elements are

included within the RFI for funding approval by FDEP. Those improvements are

summarized as follows:

1. Magnolia Point Service Pressure Improvements via Bonaventure Water Treatment

Facility (WTF) Improvements (29o59'17" N 81o41'43" W)

2. Magnolia Point Cul-de-Sac Improvements (30o00'15" N 81o42'56" W)

3. Harbor Road WTF Improvements (30o00'23" N 81o41'49" W)

Each component is summarized as follows:

1. Magnolia Point Service Pressure Improvements via Bonaventure WTF

Improvements

A variety of options were considered to address reduced service pressures

within the City’s Magnolia Point development. The recommended alternative

that would address those needs as well as some relatively low-pressure areas

within the Core City was defined as the Bonaventure WTF Improvement project.

DEP SRF Water System Improvements 1May 20198905-53-1

The project would develop a separate pumping system to serve elevated

portions (i.e. higher topographic elevations) of the City's Service Area. The

benefit to this approach is that a ground storage tank would be constructed to

provide supply water to the High Service Pumps in lieu of an ‘in-line' system that

requires sufficient volume and suction pressure for the ‘active' distribution

system. The Bonaventure ground storage tank (GST) could be filled via the

existing Bonaventure well that is currently out of service or the distribution

system could fill the tank via a control valve.

The conceptual approach is to construct a HS Pump Building and include a

200,000 gallon ground storage tank for storage and supply purposes. Additional

isolation valves would be installed, if required, to close portions of the City's

Service Area so they are only served via the Bonaventure WTF. The conceptual

site plan for the Bonaventure WTF is provided as Figure 2 and the WTF's

Service Area is depicted in Figure 3.

The estimated demands for the service area are summarized as follows:

• Connections = 1,300

• ADF Demand = 385 gpd

• MDF Demand = 775 gpm (2.0 Peaking Factor)

• PHF Demand = 1,250 gpm

Due to site constrictions, a 200,000 gallon GST is proposed. A back-up fill line

from the distribution system would be able to supplement additional flow

requirements to ensure the Bonaventure WTF would have sufficient pumps to

meet firm capacity requirements. Therefore, the storage volume would be

sufficient to meet 25% of the MDF (280,000 gallons) plus 2 hours of 1,000 gpm

fire suppression capacity (120,000 gallons). The Bonaventure well would be

reactivated to allow the distribution system to supplement or back-up the

production well should it require maintenance, and the entire Bonaventure

Service Area could always be served by the Harbor Road and Reynolds WTFs

as currently in operation.

A summary of probable project costs is provided in Table 1.

DEP SRF Water System ImprovementsCity of Green Cove Springs, Florida May 2019Mittauer & Associates, Inc. Project No. 8905-53-1 Page iii

TABLE 1

OPINION OF PROBABLE COSTBONAVENTURE WTF IMPROVEMENTS

Description Cost

1. Mobilization & General Conditions (25%) $250,000

2. EST Removal $50,000

3. Yard Piping Improvements $35,000

4. Well Pump and Motor & Wellhead Improvements $50,000

5. 0.20 MG Ground Storage Tank $450,000

6. High-service Pump Building and Equipment $400,000

7. Electrical/Instrumentation $125,000

8. Distribution System Isolation & GST Fill Line Extension $140,000

9. Miscellaneous $50,000

SUBTOTAL CONSTRUCTION COST $1,550,000

CONSTRUCTION CONTINGENCY (25%) $375,000

TOTAL ESTIMATED CONSTRUCTION COST $1,925,000

2. Magnolia Point Cul-de-Sac Improvements

Approximately seventeen cul-de-sac roadways within the Magnolia Point

development were constructed with 2-inch ‘mainline’ piping to serve between 7

to 10 homes. During peak hourly flow demands, the 2-inch piping does not

provide sufficient service pressure. It is recommended these areas be replaced

with 4-inch service lines. Priority for re-piping of the 2-inch cul-de-sac’s should

be given from west to east. The westerly cul-de-sacs provide lower service

pressures during peak demand flows, whereas the easterly cul-de-sac’s are not

as affected.

The locations to be reserviced are illustrated in Figure 4. Table 2 summarizes

the opinion of probable costs.

DEP SRF Water System ImprovementsCity of Green Cove Springs, Florida May 2019Mittauer & Associates, Inc. Project No. 8905-53-1 Page vi

TABLE 2

OPINION OF PROBABLE COSTMAGNOLIA POINT CUL-DE-SAC IMPROVEMENTS

Description Cost


2. 8"x4" Tapping Sleeve & Valve (17 @ $4,500/EA) $76,500

3. 4" Water Main Piping (17 * 350 LF @ $50/LF) $297,500

4. 1" Water Service (17 * 6 Connections @ $750/EA) $76,500

5. 2" Water Main Abandonment (17 @ $1,500/EA) $25,500

6. Flushing Hydrant (17 @ $1,500/EA) $25,500

7. Pavement Restoration (17 * 50 SY @ $45/SY) $38,250


SUBTOTAL CONSTRUCTION COST $739,750


TOTAL ESTIMATED CONSTRUCTION COST $924,750

3. Harbor Road WTF Improvements

An additional ground storage tank (GST No. 3) is recommended to address

storage deficiencies during peak hourly flows. The project would also include

an extension from the distribution system to provide a back-up ‘fill line’ should

Harbor Road have any wellfield issues.

The project’s scope is illustrated in Figure 5. Table 3 summarizes the opinion

of probable costs.

DEP SRF Water System ImprovementsCity of Green Cove Springs, Florida May 2019Mittauer & Associates, Inc. Project No. 8905-53-1 Page viii

580 1 Wells Road, Orange Park, Florida 32073-Tel. (904) 278-0030 Fax. (904) 278-0840 Florida CA No. 6569

DEP SRF Water System Improvements5

May 20198905-53-1

TABLE 3

OPINION OF PROBABLE COSTHRWTF GST NO. 3 IMPROVEMENTS

Description Cost


2. Yard Piping Improvements & ‘Emergency’ Fill Line with Valves $75,000

3. 0.20 MG Ground Storage Tank $450,000

4. Electrical/Instrumentation $50,000


SUBTOTAL CONSTRUCTION COST $730,000


TOTAL ESTIMATED CONSTRUCTION COST $915,000

DEP SRF Water System ImprovementsCity of Green Cove Springs, Florida May 2019Mittauer & Associates, Inc. Project No. 8905-53-1 Page x



SUBJECT: Approval of the third extension of the exisiting professional services contract for Engineering Services, for FY 2019/2020 BACKGROUND:

At the June 21, 2015 regular meeting, City Council approved negotiations of contracts with seven (7) ranked firms, Applied Technology & Management, Inc.,CPH Inc., CHW, GAI Consultants Inc., Matthews Design, Mittauer & Associates Inc., and Wantman Group Inc., the original contract provided for an original contract and three annual renewals. This is the third (3) renewal of the original contract. FISCAL IMPACT/FUNDING SOURCE: Unknown at this time as firms are selected and assigned projects as they occur. RECOMMENDATION:

Staff recommends approval of the third renewal of contract for Engineering Services. MOTION:

Staff recommends approval of the third renewal of contract for Engineering Services.

Created/Initiated By: Laurie Copeland on 6/12/2019 7:35 AMFinal Approval By: Steve Kennedy, City Manager on 6/12/2019 10:33 AM



SUBJECT: City Council designation of Voting Delegate and Resolution Information for the 93rd Annual Florida League of Cities Conference in Orlando, Florida on August 15-17, 2019. BACKGROUND: The attached information from the Florida League of Cities concerns selection of the City's delegate for voting on issues / items discussed at the 93rd Annual Conference sessions in Orlando, Florida on August 15-17, 2019. In addition, I have provided information regarding procedures to submit proposed Resolutions for consideration at the 93rd Annual Conference.

In the past, the City Council has designated the Mayor as its voting delegate representing the City. Should the Mayor be unable to attend, then another Council Member would be designated as the City's representative at the Annual Conference.

I have attached Resolution No. R-13-2018 (St. Johns River - Maritime Highway) that was submitted for the Florida League of Cities' consideration at the Annual Conference in 2018. City Staff requests direction from the City Council regarding submitting Resolutions for consideration by the Florida League. These will be presented for approval at the July 9, 2019 City Council meeting. FISCAL IMPACT/FUNDING SOURCE: N/A. RECOMMENDATION: Approve the selection of a member of the City Council as the City's Voting Delegate for the Florida League of Cities' 93rd Annual Conference in Orlando, Florida, on August 15-17, 2019.

Staff requests direction from the City Council regarding submitting Resolutions for consideration by the Florida League at their Annual Conference. MOTION: Approve the selection of a member of the City Council as the City's Voting Delegate for the Florida League of Cities' 93rd Annual Conference in Orlando, Florida, on August 15-17, 2019.

Staff requests direction from the City Council regarding submitting Resolutions for consideration by the Florida League at their Annual Conference.

Created/Initiated By: Erin West, City Clerk on 6/5/2019 11:13 AMFinal Approval By: Steve Kennedy, City Manager on 6/6/2019 7:33 AM



SUBJECT: City Council discussion and approval of revised economic development approach to Electric system infrastructure improvements for large customers. BACKGROUND: For many years now, the City's approach to new development has been that new development should pay for 100% of the costs related to their development. The City has recently been approached by two electric customers on CR 315 that are requesting upgraded electric services. The services will be upgraded significantly, to the extent that they will become large customers (larger than an 800 amp service for the sake of this discussion).

This will require that the main electric feed on CR315 be converted from 13 kV to 23 kV. The 13 kV system in this area does not have the capacity to serve these new loads and other potential new loads in this same area. This will require the replacement of all transformers on this section of CR315.

In addition to the main electric feed on CR315, the service lateral to each of these upgraded facilities will require upgrades.

Historically, the City's approach would have been to charge the first customer to request service for the entire upgrade on CR315 as well as on their lateral. The second customer would then only have to pay for the upgrades on their lateral. However, given the potential economic impact of these two customers along with the potential for further expansion, City staff is asking Council to consider a new approach; a change in philosophy if you will.

In this case, we are looking at two customers; PASS and AMMCON. The costs are broken down as follows:

CR315 main feed - $200,000 AMMCON lateral - $56,000 PASS lateral - $40,000

A map is attached to help illustrate these areas.

City staff is proposing that each customer pay for the upgrade on their lateral at 100% plus a pro rata share of the main feed upgrade. This pro rata share is supported by section 90-123(i) of the City Code (attached for reference). In this particular case, City staff is proposing that the Electric Department absorb 50% of the main feed upgrade ($100,000). This upgrade does add

some benefit to the overall electric system. We would then propose to recover the remaining $100,000 by charging $20,000 (20%) to each of the first five (5) customers to request a new or expanded service greater than 800 amps. Both PASS and AMMCON fit this description, so we would collect $20,000 from each in the near future. This cost-sharing arrangement would likely be captured in a Development agreement similar to the one that governs recovering the cost of utility development on Energy Cove Ct. Also similar to the Energy Cove Ct agreement, staff recommends that interest be charged at 3% per annum.

So in this scenario, instead of the first customer to the table paying $250,000 for expanded electric service and the second one reaping the benefits, the costs would be shared as follows:

PASS - $40,000 for their lateral + $20,000 = $60,000 AMMCON - $56,000 for their lateral + $20,000 = $76,000 City - $160,000 with the ability to recover $60,000 at 3% interest per annum.

While this sharing of costs is supported by the current City Code, staff is requesting Council approval of the concept since it is a philosophical change to the way the City has been doing business. If this approach is approved by Council, then staff would also ask that the City Manager and/or his designee be given the latitude to make these financial decisions (within the confines of the approved budget) during the review of new large electric loads. The City Manager and/or his designee would then report back to Council with the results and any agreements, etc. that need to be executed by the Mayor.

Additionally, PASS has approached the City about the possibility of spreading the cost of this upgrade over a certain number of months on their monthly electric bill. City Code Section 90-123(j) requires this cost be paid in cash at the time service is requested. Obviously there is a certain amount of exposure if we spread the cost over five years; for example, and the business leaves after three. Therefore, this item is being presented for Council discussion and direction, if any. To help further alleviate concerns as to the risk the City would be taking on, PASS has purchased the building through a Small Business Administration (SBA) loan. They have also approached the Clay County Economic Development Council (CCEDC) about a loan for up to $145,000 to fund the necessary electric improvements both inside and outside of the building. FISCAL IMPACT/FUNDING SOURCE: The $160,000 for the City portion would be funded from retained earnings and require a budget adjustment. RECOMMENDATION: Approve the change in philosophy for sharing and assigning costs of Electric expansion and upgrades within the confines of the City Code and the approved budget. MOTION: Approve the change in philosophy for sharing and assigning costs of Electric expansion and upgrades within the confines of the City Code and the approved budget.

Created/Initiated By: Mike Null, Asst. City Manager on 6/13/2019 11:46 AMFinal Approval By: Steve Kennedy, City Manager on 6/13/2019 11:49 AM

of 3

Sec. 90-123. - Fees for capital installation in the electric department.

(a) New facilities for permanent service. As required under this Code, electrical supply systems shall be placed underground. Any exceptions must be approved by city council during the application process defined in this Code. This section covers the addition, modification, or upgrading of the city's existing power distribution system to provide or expand electric service to new or existing customers.

(b) Single-phase customers. The city will determine the cost of new underground single-phase service facilities and the current costs for providing standard single-phase service as indicated in subsection (h) of this section. If the total cost of new facilities is higher than the cost for providing standard single-phase service, the customer shall pay to the city a contribution in aid of construction (CIAC) equal to the difference between the total estimated installed cost of the new facilities and the cost for standard single-phase service as updated from time to time. Payment of the CIAC shall be as indicated in subsection (i) of this section.

(c) Three-phase customers. The city will determine the cost of new underground three-phase service facilities and the current costs for providing standard three-phase service as indicated in subsection (h) of this section. The customer shall pay to the city a contribution in aid of construction (CIAC) equal to the difference between the total estimated installed cost of the new facilities and the cost for standard three-phase service as updated from time to time. The minimum CIAC shall be one-half of the estimated installed cost of the new facilities. Payment of the CIAC for commercial accounts shall be as indicated in subsection (i) of this section.

(d) New subdivisions. As required under this Code, electrical supply systems in new subdivisions shall be placed underground. Any exceptions must be approved by city council during the application process defined in this Code.

(e) Responsibilities of developer. The developer shall be responsible for paying a capital installation fee of $1,300.00 per lot. The fee shall be paid to the city within 30 days of the subdivision plat recording date. The developer is also responsible for providing and installing a complete underground electric conduit system from the city's designated primary connection point for the subdivision to the city's designated service point for each lot as required under this Code and as approved by the city. Conduit quantities and sizes shall be as directed by the city. The developer shall also be responsible for providing and installing concrete pads for electrical equipment as specified by the city, and for reimbursing the city for all design engineering costs associated with the installation of the underground system. Installation of underground conduits and concrete pads shall adhere to the requirements of the National Electrical Safety Code (ANSI C2, latest edition), section 32, Underground Conduit Systems. Conduit routing and terminations, and locations of equipment pads, shall be provided by the city during the application process. All charges hereunder for platted subdivisions in the city's service area shall be due within 30 days from the date of platting.

(1) Installing equipment; making service connections. The city will furnish, install, and connect underground supply cables, pad mounted transformers, switches and other equipment associated with the underground primary distribution system. The city will also make final service connections within the subdivision as indicated in subsection (f) of this section.

(2) Contribution in aid of construction for overhead power supply system within new subdivision. Contribution in aid of construction will be required if city council approves overhead placement of the power supply system within a subdivision. Contribution in aid of construction will be estimated by the city and shall include all material, labor, equipment and engineering costs for furnishing and installing the facilities required to provide service to all lots within the subdivision. Payment of contribution in aid of construction shall be as indicated in subsection (i) of this section.

(f) New underground services from an overhead source. When a customer desires placement of new service facilities underground, where the city's distribution facilities are located overhead, the customer shall furnish and install meter housing, conduit and conductors from meter housing to an overhead source pole as identified by the city, and terminate conductors at the meter housing; none of which will be undertaken by the city with the exception of furnishing the meter and meter socket if

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the service is single phase, 200 amps or less. The customer shall furnish enough additional conductor coiled at the base of the overhead source pole for the city to make the necessary connections to such pole. The length of additional conductor to be furnished will vary with pole height and shall be as determined by the city. The customer shall be responsible for the maintenance of these types of services.

(g) New underground services from an underground source. In areas where the city's distribution facilities are located underground, a customer shall furnish and install meter housing, conduit and conductors from meter housing to an underground source facility as identified by the city, and terminate conductors at the meter housing; none of which will be undertaken by the city with the exception of furnishing the meter and meter socket if the service is single phase, 200 amps or less. The customer shall furnish enough additional conductor coiled within the underground source facility for the city to make the necessary connections to such facility. The customer shall coordinate conductor installation with the city to gain access into underground source facility. The customer shall be responsible for the maintenance of these types of service.

(h) Placement of existing overhead services underground. If a customer desires to place an existing overhead service underground, the customer shall pay the entire cost for converting from overhead to underground service. The city will waive connection fees for such conversions. The customer shall furnish and install meter housing, conduit and conductors from meter housing to an overhead source pole as identified by the city, and terminate conductors at the meter housing; none of which will be undertaken by the city. The customer shall furnish enough additional conductor coiled at the base of the overhead source pole for the city to make the necessary connections to such pole. The length of additional conductor to be furnished will vary with pole height and shall be as determined by the city. The customer shall be responsible for the maintenance of these types of services.

(i) Determination of cost of an expanded service. Total cost of an expanded service shall be determined by the city and shall include all material, labor, equipment and engineering costs associated with designing, constructing and decommissioning facilities required to accomplish the expanded service. If some facilities are intended to serve other or future customers, the city may assign a pro-rata share of the total cost to such customers. If the city constructs additional facilities in conjunction with the expanded service to improve overall system operations, the resulting incremental portion of the total cost will be borne by the city. The city will provide an estimate of material, labor, equipment and engineering costs for installing the facilities required to provide the requested expanded service. The city's estimate will be based on historical information on labor, equipment and engineering costs and vendor-provided information for material costs together with a 35 percent fee applied to such costs for city administrative overhead. Such estimate will be used to determine potential contribution in aid of construction charges to the customer. Actual costs will be based on actual material, labor, equipment and engineering costs incurred by the city in providing the requested expanded service together with a 35 percent fee applied to such costs for city administrative overhead. The city may collect from the customer the difference between the estimated and actual contribution in aid of construction costs.

(j) Payment of contribution in aid of construction. If a contribution in aid of construction is required, it shall be paid in cash at the time service is requested. Installation of new service facilities will commence when the city receives full payment of contribution in aid of construction.

(k) Power and distribution services purchase agreement. A power and distribution services purchase agreement will be required if the city determines that such an agreement is needed to ensure continuity of service allowing the city to recover its investment. The agreement period shall be a minimum of five years.

(l) Contract surety. At the discretion of the city, a contract surety such as a payment bond, letter of credit, or other such guarantee of payment may also be required. The amount of surety shall not exceed the cost for new or expanded service determined in accordance with subsection (e) of this section. The customer shall sign the agreement before installation of new facilities begins.

(m) Waiver of contribution in aid of construction. At its sole discretion, the city council may waive the surety requirement and contribution in aid of construction requirement in part or in whole, if it

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determines it is in the best interest of the city to do so after considering the costs of providing new facilities, any savings resulting from providing more than one utility to the customer, the return on investment, and the current standing of customer with other utilities provided by the city.

(Code 1983, § 23-56; Code 2001, § 78-86; Ord. No. O-14-2001, art. I, 8-7-2001; Ord. No. O-21-

2005, § I, 12-6-2005; Ord. No. O-13-2014, § 1, 12-9-2014)

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