COMPREHENSIVE ANNUAL FINANCIAL REPORT · 2018. 5. 1. · COMPREHENSIVE ANNUAL FINANCIAL REPORT of...

For the Year Ended September 30, 2017 and 2016

Port Canaveral, Florida

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COMPREHENSIVE ANNUAL FINANCIAL REPORT

of the Canaveral Port Authority



Prepared by the Department of Finance

Canaveral Port Authority • 445 Challenger Road, Suite 301 • Cape Canaveral, FL 32920

COMPREHENSIVE ANNUAL FINANCIAL REPORT

of the Canaveral Port Authority



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Canaveral Port Authority


Comprehensive Annual Financial Report

Year Ended September 30, 2017 and 2016

TABLE OF CONTENTS

Page

INTRODUCTORY SECTION

Table of Contents .................................................................................................. i - iv Organizational Chart .......................................................................................................................... v Listing of Principal Officials ..................................................................................................................... vii Letter of Transmittal by Chief Financial Officer ....................................................................................... ix - xiv Certificate of Achievement for Excellence in Financial Reporting ............................................................................ xv

FINANCIAL SECTION

Independent Auditor’s Report ......................................................................... xvii - xix Management’s Discussion and Analysis ...................................................... xxi – xxviii Financial Statements Statements of Net Position .............................................................................. 2 - 3 Statements of Revenues, Expenses and Changes in Net Position ..................................................................................... 4 Statements of Cash Flows ............................................................................... 5 - 6 Notes to Financial Statements ....................................................................... 7 - 42 Required Supplementary Information Schedule of Proportionate Share of Net Pension Liability – Ten Years .............. 44

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FINANCIAL SECTION (CONTINUED) Page Schedule of Contributions – Ten Years ................................................................... 45 Schedule of Funding Progress of Other Postemployment Benefits ......................... 46

Supplementary Information Schedule of Revenues, Expenses and Income before Capital Contributions Compared with Budget ........................................... 49 - 53 Schedule of Comparative Revenues, Expenses and Changes in Net Position, Years Ended September 30, 2017, 2016, 2015, 2014, and 2013 ......................................................................................... 55 - 59 Schedule of Comparative Operating Revenues by Activity, Years Ended September 30, 2017, 2016, 2015, 2014, and 2013 ................................................................................................ 60 Schedule of Construction in Progress and Capital Costs Compared with Budget ................................................................... 61 - 62 Schedule of Expenditures of Federal Awards and State Financial Assistance ................................................................ 63 – 64 Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ....................................................................... 65

STATISTICAL SECTION - NOT COVERED BY AUDITOR’S

OPINION

Narrative for Statistical Section ............................................................................ 68 A. Financial Trend Schedules A-1 Net Position - Last Ten Fiscal Years ...................................................... 69 A-2 Operating Revenues By Source - Last Ten Fiscal Years .................................................................................... 70 - 71 A-3 Operating Revenues By Activity - Last Ten Fiscal Years ..................................................................... 72 - 73

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STATISTICAL SECTION (CONTINUED) Page A-4 Non-Operating Revenues - Last Ten Fiscal Years ................................ 74 A-5 Total Revenue By Activity - Fiscal Year 2017 ........................................ 75

A-6 Operating Expenses - Last Ten Fiscal Years .................................. 76 - 77 A-7 Non-Operating Expenses - Last Ten Fiscal Years ................................. 78

A-8 Changes in Net Position - Last Ten Fiscal Years ................................... 79 A-9 Total Expenses - Fiscal Year 2017 ........................................................ 80 A-10 Operating Revenues and Expenses - Fiscal Years 1997 through 2017 ............................................................................... 81 B. Revenue Capacity Schedules B-1 Cargo Revenue - Last Ten Fiscal Years ......................................... 82 - 83 B-2 Cargo Revenue - Last Ten Fiscal Years ................................................ 84 B-3 Cargo Revenue - Fiscal Year 2017 ........................................................ 85 B-4 Revenue Passengers - Last Ten Fiscal Years ....................................... 86 B-5 Revenue Passengers - Last Ten Fiscal Years ....................................... 87 B-6 Ten Largest Revenue Generating Customers - Fiscal Year 2008 & 2017 ................................................................ 88 - 89 C. Debt Capacity Information Schedule C-1 Revenue Bond Coverage - Last Ten Fiscal Years .......................... 90 - 91 C-2 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ............... 92 D. Demographic and Economic Information Schedules D-1 Demographic Statistics for Brevard County – Last Ten Fiscal Years ........................................................................... 93 D-2 Principal Employers – Brevard County 2017 & 2008 ............................. 94

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STATISTICAL SECTION (CONTINUED) Page

D-3 Map of Port District & Commission District ............................................ 95 E. Operating Information Schedules E-1 Employee Positions by Function - Last Ten Fiscal Years ...................... 96 E-2 World Trading Partners Map .................................................................. 97 E-3 Cargo Tonnage - Last Ten Fiscal Years ......................................... 98 - 99 E-4 Operating Indicators by Function- Last Ten Fiscal Years .................... 100 E-5 Capital Assets by Function – Last Ten Fiscal Years ............................ 101 E-6 Capital Improvements - Last Ten Fiscal Years .................................... 102

COMPLIANCE SECTION

Additional Elements Required by Government Auditing Standards

and the Rules of the Auditor General 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 ............................................. 103 - 104 Report on Compliance for the Major State Project; and Report on Internal Control Over Compliance; Required by Chapter 10.550, Rules of the Florida Auditor General .................................................................. 105 - 106 Schedule of Findings and Questioned Costs .............................................. 107 Summary Schedule of Prior Audit Findings ........................................ 108 - 109

OTHER INFORMATION - NOT COVERED BY AUDITOR’S OPINION

Schedule of Insurance in Force ............................................................................. 110 Map of Port Canaveral ........................................................................................... 111

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THIS PAGE INTENTIONALLY LEFT BLANK

Micah LoydCommissioner

Bob HarveyCommissioner

Jerry W. AllenderCommission Secretary/Treasurer

Thomas “Tom” WeinbergCommission Chairman


2016/2017

Wayne E. JusticeCommission Vice-Chairman

John W. MurrayChief Executive Officer

Patricia G. PostonSenior Director of Finance

Rodger Rees*Deputy Executive Director/Chief Financial Officer

Diana Mims-ReidController

*Resigned January 4, 2018

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Listing of Principal Officials

As of September 30, 2017

Elected Officials

The Canaveral Port Authority, governing body of the Canaveral Harbor Port District, consists of five elected Commissioners. The Board meets on the third or fourth Wednesday of each month at 9:00 A.M. The meetings are held in the Board Room of the Port Authority office building located at 445 Challenger Road. In addition, special meetings and public hearings are scheduled throughout the year.

Years of Term

Commissioner Position Service Expires

Thomas W. Weinberg Chairman 7 12/31/18

Jerry W. Allender Vice Chairman 3 12/31/18

Wayne E. Justice Secretary/Treasurer 7 12/31/18

Bob Harvey Commissioner 1 12/31/20

Micah Loyd Commissioner 1 12/31/20

Appointed Officials

Years of

Service Cpt. John W. Murray Chief Executive Officer 1

Rodger Rees* Deputy Exec. Director/Chief Financial Officer 4

Jim Dubea**

Deputy Exec. Director/ Government & Strategic Partnerships

4

Craig Langley General Counsel 3

George Arocha Director of Cargo & Container Operations 3

Amanda Brailsford-Urbnia Vice President of Human Resources 1

Brian Blanchard Sr. Director of Customer Experience 4

Barry Compagnoni Sr. Director of Public Safety & Security 1

Samantha Cornelius Director of Cargo Business Development 1

William Crowe Sr. Director of Facilities, Construction & Engineering 2

Robert Giangrisostomi Sr. Director of Business Development 17

AJ Jendroch Director of Facilities 4

Diane Luensmann Sr. Director of Government & Strategic Communications 1

Mark Lorusso Sr. Director of Information Technology 6

Clyde Mathis Sr. Director of Operations 3

Diana Mims-Reid Controller 17

Bob Musser Director of Environmental 1

Karen Pappas Director of Procurement & Material Management 16

David T. Poston Director of Cruise Business Dev., Tourism & Hospitality 17

Patricia G. Poston Sr. Director of Finance 20

Scott Shepard Director of Real Estate 2

* Resigned January 4, 2018 ** Resigned February 16, 2018

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Port Canaveral445 Challenger Road Suite 301 Cape Canaveral, Florida 32920 USA321.783.7831 888.767.8226 www.portcanaveral.com

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April 12, 2018 To the Canaveral Port Authority Commissioners, Chief Executive Officer (CEO) and Citizens of the Canaveral Harbor Port District: State law requires that all general-purpose local governments, including special districts, publish within nine months of the close of each fiscal year, a complete set of financial statements presented in conformity with U. S. general accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards and Government Auditing Standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Canaveral Port Authority for the fiscal years ended September 30, 2017 and 2016. This report consists of management’s representations concerning the finances of the Canaveral Port Authority (the Authority). Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Canaveral Port Authority has established a comprehensive internal control framework that is designed to: 1) protect the government’s assets from loss, theft, or misuse and 2) compile sufficient reliable information for the preparation of the Authority’s basic financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Authority’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. RSM US, LLC, a firm of licensed certified public accountants, has audited the Canaveral Port Authority’s basic financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Authority for the fiscal year ended September 30, 2017 and 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Canaveral Port Authority’s basic financial statements for the fiscal years ended September 30, 2017 and 2016, are fairly presented. These statements are included as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Canaveral Port Authority’s MD&A can be found immediately following the report of the independent auditor.

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Profile of the Canaveral Port Authority The Canaveral Harbor Port District, as presently structured, was created by House Bill Number 1136, Chapter 28922, from the Laws of Florida Special Acts of 1953, as amended and restated by Chapter 2003-335, Laws of Florida, Acts of 2003, and acts amendatory thereof and supplemental thereto. This bill created, organized and established a port district in Brevard County, Florida and designated the area as the Canaveral Harbor Port District. The Canaveral Port Authority is a quasi-public governmental body, an independent special taxing district that is a political subdivision of the state of Florida. As such, it is not under the jurisdiction of Brevard County or any neighboring city. The Canaveral Port Authority has operated under the Commission-manager form of government since 1953. Five elected commissioners, representing the five Port districts, serve as a board of directors and have jurisdiction over all fiscal and regulatory policies and operations of the Port. Commissioners are chosen by the public via an at-large election and serve four-year terms. These terms are staggered, with three commissioners up for election at one time, and the remaining two up for election two years hence. As an independent special district of the State of Florida, the Canaveral Port Authority is empowered to levy ad valorem taxes to finance expansion and operation, incur indebtedness through the sale of bonds or use of bank loans, establish tariff rates, negotiate for government grants, condemn necessary land, zone its land, and exercise police powers. The commission is responsible, among other things, for passing policies, adopting a budget, appointing committees, and hiring both the government’s manager (CEO) and attorney. The CEO’s authority and responsibilities are similar to those of both the manager of a local government and the president of a sizable private corporation. The major goals of the Port Authority are to give the residents of the area the benefits of low-cost ocean transportation, a foreign trade zone and to create economic opportunity and jobs. The Authority also provides substantial facilities for recreation for the local population and visitors alike. The annual Operating and Capital Budgets serve as the foundation for the Canaveral Port Authority’s financial planning and control. All departments of the Port Authority are required to submit budget requests to the CEO during June of each year. The CEO uses these requests as the starting point for developing a proposed budget. The Chief Financial Officer (CFO) then prepares and presents this proposed budget to the commission for review prior to September 30. The commission holds two public hearings on the proposed budget and adopts a final budget no later than September 30, the close of the Canaveral Port Authority’s fiscal year (FY). The Operating Budget is prepared by functional department. Due to operating or unforeseen activities during the year, department heads may request modifications to their departmental budget. Any proposed changes to the Operating Budget are approved by the commission at a public hearing. Budget-to-actual comparisons are provided in this report for each individual department. Changes to the Capital Budget are more fluid, but do require the approval of the Commission. Economic Conditions in Fiscal Year 2017 The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Canaveral Port Authority operates.

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Local Economy The Canaveral Harbor Port District encompasses approximately the northern two-thirds of Brevard County. The County is home to a number of large employers, both public and private. According to the U.S Department of Labor; Bureau of Labor Statistics the Nation’s unemployment rate at September 2017 is estimated at 4.2%, the state of Florida unemployment rate is 3.9% and Brevard County Florida is 3.6%. Economic Outlook Port Canaveral is strategically located on the central east coast of the state and enjoys a significant “drive-to” market for cruising. During fiscal year 2017, Port Canaveral served as homeport to twelve different multi-day cruise vessels and twenty-five different port-of-call ships. Of the twenty-five port-of-call ships, thirteen of them made multiple port-of-call visits with twelve ships stopping for a single port-of-call visit. Total revenue passengers for multi-day cruises and port-of-calls in FY2017 were 4,240,942 versus 3,951,127 in FY2016, representing a 7.3% increase. Total revenue passengers, including one day cruises reflected a 7% increase as compared to FY2016. Total revenues from cruise operations excluding cruise parking for FY2017 increased 5.3% over FY2016. Cruise parking revenues for FY2017 increased 11.9% over FY2016. As compared to FY2016, cargo revenue increased by 24.7% and cargo tonnage increased 8.9% for FY2017. Several commodities experienced an increase in volume with lumber, machinery & equipment and new cars increasing 278%, 100% and 933%, respectively, leading the way. FY2017 marked the first receipt of the newest addition to cargo with commercial space voyages. Commercial space carriers launch rockets from Cape Canaveral just north of the Port. After landing on the water, on an unmanned barge, the rockets are brought back to the Port for refurbishment and reuse. These revenues are included in the machinery & equipment commodity. The Authority continues to implement new security measures to ensure the safety of the traveling public as well as Port Canaveral tenants. The annual costs of these services exceeded $8.6 million for FY2017. This is an increase of 10.2% over FY2016. In addition to both police and fire protection provided to cargo and cruise operations and tenants, the Authority added several additional security personnel during peak cruise times to enhance security and aid the flow of traffic from increased passenger counts. As of September 30, 2017, the Port completed $92 thousand in security infrastructure projects with an additional amount of nearly $400 thousand not yet completed. We continue to work with Federal and State agencies to obtain funding assistance to help offset these important costs. Long-Term Financial Planning In addition to the Authority’s operating budget process, a $500 million five-year capital plan has been developed to assess future needs. As part of this capital plan, projects are

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continuously evaluated to determine whether any new projects will yield an appropriate rate of return before any investment is considered when additional funding is needed. The Authority continues to invest its cash resources to achieve the desired results along with prudent borrowing policies using bond financing and bank debt. A key component of capital project analysis also includes the availbility of Federal and State agencies grant funding. Relevant Financial Policies The Authority continues to follow financial policies in effect which includes policies governing budget, investment, fraud, leasing land, travel, purchasing, and Commissioners minor expenses. These policies are reviewed annually, with amendments approved by the Board. Major Initiatives The Authority continues to expand and improve its cruise, cargo, recreational and real estate facilities and infrastructure. FY2016 marked the commencement of several projects completed later in FY2017. These include the Cruise Terminal 8 renovation to include upgrades to the facility with a new roof, interior painting, an HVAC system and replacement of its translucent exterior wall system. The construction phase for the Cruise Terminal 10 improvements began in FY2016 and was completed as planned in FY2017. Of the $9.3 million of projects started in FY2016, $17.3 million were completed and included in those projects closed in FY2017. To fund construction draws associated with the projects during the construction period in FY2016, the Authority maintained a $50 million revolving line of credit with a national bank. During FY2016, the line-of-credit was partially satisfied by permanent financing provided by two national banks in the amount of $62.1 million. While this financing only covered approximately 73% of the financing needed, additional permanent financing was completed in FY2017. Construction began or continued during FY2017 on several major projects for the Authority. The West Turning Basin Cargo Area Deepening project continues. This project will deepen the basin in the cargo area to a depth of -43 feet and is expected to be completed in FY2018, with an estimated cost of $8.5 million. This project will bring the entire turning circle to a navigable depth for deeper draft cargo vessels. Construction continued on a Phase 1 of new northside cargo berth (NCB8), to include dredging, seawall and infrastructure. This project is expected to be completed late 2018 with a budget of $19.1 million. NCB8 will facilitate the rapid growth of the commercial space industry, a new component of cargo carriers and expanded cargo lines that require infrastructure to support much heavier load requirements. Northside cruise and cargo roadway improvements and a new Wayfinding system is a project started in FY2017. This project will improve the roadway network heavily utilized by both cruise and cargo business. The estimated cost is $12 million and is expected to have the first phase completed in mid 2019. All of these projects are supported by grant funding from the State of Florida, Department of Transportation and Department of Economic Opportunity. Other large projects underway are the Commercial Access & Billing system, Portwide Parking Improvements and early design for a new cruise terminal. These projects have an estimated investment of $166 million.

FY2017 had a number of large projects completed. Cruise Terminal 10 underwent a $33.9 million dollar renovation which began in FY2015 and was completed late in FY2017. The renovation to Cruise Terminal 10 was completed to improve security clearance and processing to serve modern class vessels (5000-6000 PAX), improve ship fleet compatibility, improved baggage lay down and a new gangway. The renovation included new entry, second floor additions, elevators and escalators, finishes, doors, windows, hardware, mechanical, electrical, plumbing fire sprinklers, low voltage systems and limited site work and underground utilities to further expand cruise operations. The final work on the West Turning Basin Channel Widening of the Inner Reach was completed at a cost of $3.7 million. Also finalized were improvements to SR401 and Port roadways at a cost of $4.1 million. Cruise Terminal 8 renovation was completed in late FY2017 at a cost of $2.1 million. In total, the capital projects completed in FY2017 were $54.5 million.

Early in FY2018 the Commission of the Authority reviewed and unanimously voted to withdraw the proposal to construct a rail line pending docket of the Surface Transportation Board and notify the agency of this action.

Nearly all of the above improvements will be funded from existing cash flow as a result of the increased revenues from existing and projected cruise, cargo, and land lease operations, Federal and State grants and bank financing. The Port continues to seek federal and state assistance in the form of grants and capital improvement funding. The Authority has received federal funding from FEMA for portions of the security infrastructure and funding from the Florida Department of Transportation for the deepening and widening of the Port’s channel, cargo expansion projects and the Ports road system.

Awards and Acknowledgments

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Canaveral Port Authority for its comprehensive annual financial report for the fiscal year ended September 30, 2016. This was the twenty-sixth consecutive year that the Authority has received this prestigious award. In order to be awarded a Certificate of Achievement, the Authority published an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. I would like to extend my thanks to all members of the department who assisted and contributed to the preparation of this report, with special recognition given to Controller, Diana Mims-Reid. Thanks and appreciation are also extended to the Government and Strategic Communications department Tracy Krutz with her help on reviewing and coordinating this report and also to the firm of RSM US, LLC for their professional approach and high standards in the conduct of their independent audit of the Authority’s financial records and transactions as well as their assistance in the preparation of this report.

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Finally, I would also like to express my appreciation to the Canaveral Port Authority Board of Commissioners and CEO John Murray for their guidance and support throughout the year. I appreciate their interest and leadership in planning and conducting the financial operation of the Authority in a progressive and responsible manner.

Respectfully submitted,

_ Patricia G. Poston Interim Chief Financial Officer

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FINA

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Independent Auditor’s Report

To the Members of the Board of Commissioners Canaveral Port Authority Cape Canaveral, Florida

We have audited the accompanying financial statements of the Canaveral Port Authority (the Authority), as of and for the years ended September 30, 2017 and 2016, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion 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 opinion.

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Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority, as of September 30, 2017 and 2016, and the changes in financial position and cash flows for the years then ended in accordance 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 (MD&A), the schedule of funding progress of other post-employment benefits, the schedules of the Authority’ proportionate share of the net pension liability, and the schedules of Authority contributions 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.

Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority’s basic financial statements. The schedule of revenues, expenses and income before capital contributions compared with budget, schedule of comparative revenues, expenses and changes in net position, schedule of comparative operating revenues by activity, schedule of construction in progress and capital costs compared with budget, the schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and Chapter 10.550, Rules of the Auditor General, State of Florida, and the introductory section, statistical section and other information section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The schedule of expenditures of federal awards and state financial assistance is the responsibility of management and was 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 basic 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 schedule of expenditures of federal awards and state financial assistance is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The schedule of revenues, expenses and income before capital contributions compared with budget, schedule of comparative revenues, expenses and changes in net position, schedule of comparative operating revenues by activity, the schedule of construction in progress and capital costs compared with budget, and the introductory section, statistical section and other information section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and accordingly, we do not express an opinion or provide any assurance on them.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2018 on our consideration of the Authority'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 Authority’s internal control over financial reporting and compliance.

Melbourne, Florida March 27, 2018

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Management’s Discussion and Analysis (Unaudited)

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As management of the Canaveral Port Authority (the “Authority”), we offer readers of the Canaveral Port Authority’s financial statements this narrative overview and analysis of the financial activities of the Canaveral Port Authority for the fiscal years ended September 30, 2017 and 2016. All amounts, unless otherwise indicated, are expressed in thousands of dollars.

Financial Highlights

• The assets of the Canaveral Port Authority exceeded its liabilities at the close of the most recentfiscal year by $344,321 (net position). Of this amount, $37,416 is the unrestricted net positionand is available to meet the Authority’s ongoing obligations to creditors.

• The Authority’s total net position increased by $7,668. This increase consists of $2,813 of incomebefore capital contributions and capital contributions of $4,855.

• At the end of the current fiscal year, the unrestricted net position was 39.3% of total expenses.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the Canaveral Port Authority’s basic financial statements. The Authority’s basic financial statements are comprised of two components: fund financial statements and notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

The basic financial statements report information about the Authority using full accrual basis of accounting as utilized by similar business activities in the private sector. The financial statements include a statement of net position, a statement of revenues, expenses and changes in net position, and a statement of cash flows.

The statement of net position presents information on all of the Authority’s assets and deferred outflows of resources as well as liabilities and deferred inflows of resources, with the difference between the two groups reported as total net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Canaveral Port Authority is improving or deteriorating.

During fiscal year 2016, the Authority adopted GASB Statement No. 72, Fair Value Measurement. This pronouncement required the Authority to report at fair value using quoted market price or other fair value techniques.

The statement of revenues, expenses and changes in net position presents information showing how the Authority’s net position changed during the 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.

The statement of cash flows presents changes in cash and cash equivalents from operational, financing, and investing activities. This statement presents cash receipt and disbursement information without consideration of the earnings event, when an obligation arises, or depreciation of capital assets.

The basic enterprise fund financial statements can be found on pages 2-6 of this report.



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The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements. The notes to the financial statements can be found on pages 9-42 of this report.

In addition to the basic financial statements and accompanying notes, this report also presents other supplementary information. This supplementary information can be found on pages 49-65 of this report.

Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. Assets exceeded liabilities as of September 30, 2017 and 2016 by $344,321 and $336,653, respectively.

The following table reflects the condensed statement of net position:

Canaveral Port Authority’s Net Position (In thousands)

2017 2016 2015

Current and other assets 73,754 $ 39,666 $ 36,632 $ Capital assets 590,263 599,227 522,907

Total assets 664,017 638,893 559,539 Deferred outflows of resources 1,023 1,195 1,171 Current liabilities 38,959 64,224 45,958 Noncurrent liabilities 281,642 239,135 187,790

Total liabilities 320,601 303,359 233,748 Deferred inflows of resources 118 76 79 Net position:

Net investment in capital assets 301,670 305,846 301,897 Restricted 5,235 1,825 1,825 Unrestricted 37,416 28,982 23,161

Total net position 344,321 $ 336,653 $ 326,883 $

By far the largest portion of the Authority’s net position as of September 30, 2017 and 2016 (87.6 % and 90.8%, respectively), reflects its investment in capital assets (e.g., land, buildings, improvements, equipment, intangibles and construction in progress); less any related debt used to acquire those assets that are still outstanding. These assets are not available for future spending. Although the Authority’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from operations, since the capital assets themselves cannot be used to liquidate these liabilities.



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In addition, a portion of the Authority’s net position as of September 30, 2017 and 2016 (1.5% and 0.5%, respectively), represents the reserve for maximum debt service restricted in accordance with existing bond covenants and was funded from operations. The remaining balance of unrestricted net position may be used to meet the Authority’s ongoing obligations to creditors. At the end of the current fiscal year, the Authority’s unrestricted net position increased by $8,434. In the prior year, unrestricted net position increased by $5,821.

The Authority’s total net position increased by $7,668 during the current fiscal year. Of this amount, $2,813 represents net income before capital contributions. The remaining $4,855 represents the capital contributions (grant proceeds) from federal and state sources. There is no assurance that these capital contributions from other sources will continue in the future.

Net Position

$0$40,000$80,000

$120,000$160,000$200,000$240,000$280,000$320,000

2017 2016 2015

Net investment in capital assets

Restricted

Unrestricted



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The following table shows condensed revenue and expense data:

Canaveral Port Authority’s Changes in Net Position (in thousands)

2017 2016 2015Operating revenues:

Fees and charges for services 93,280 $ 85,478 $ 77,705 $ Non-operating revenues:

Investment earnings 446 165 193 Other 4,286 986 181

Total non-operating revenues 4,732 1,151 374 Total revenues 98,012 86,629 78,079

Operating expenses:Operations, facilities and public safety 26,223 23,424 21,647 Executive, finance and administration 9,482 7,909 7,664 Engineering and environmental 5,633 1,936 1,970 Other 5,078 6,230 5,479 Depreciation and amortization 38,880 35,830 33,226

Total operating expenses 85,296 75,329 69,986

Non-operating expenses:Interest 8,726 6,976 5,640 Other 1,177 1,188 380

Total non-operating expenses 9,903 8,164 6,020 Total expenses 95,199 83,493 76,006

Income before contributions 2,813 3,136 2,073 Special item - - (422) Capital contributions 4,855 6,634 27,833 Change in net position 7,668 9,770 29,484 Net position – beginning 336,653 326,883 297,399 Net position – ending 344,321 $ 336,653 $ 326,883 $

Key elements of the increase in net position for the fiscal year ended September 30, 2017, are as follows.

• Overall fees and charges for services increased 9.1%. Included in the overall fees and chargeswere revenues from cruise operations, cargo and recreation which increased 6.7%, 24.7% and(15.3)%, respectively. The growing number of cruise passengers and additional ship visitsresulted in the increase of cruise revenues of nearly $5 million and 6.7% as compared to theprior year. Cargo tonnage increases of 494 thousand tons and $1.7 million over the prior yearwere the other major component of current year fees and services increased revenues. Thedecrease in recreation was due to Hurricanes Matthew and Irma which closed Jetty Park fortwo and one half months during Fiscal Year 2017. Parking and land leases increased 11.8%and 23.7%, respectively. Other revenues, that include commercial vehicle revenue, increased27.2%.



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• Overall, non-operating revenues increased by 311.1%. Non-operating revenues includeinvestment earnings, grant revenue, and gains on sale of assets or legal settlements. Investmentearnings increased by 170.3%, gain on sale/disposal of assets increased by 337.3%. The sale ofassets included a gain of $3.6 million which is the primary factor in the increase of non-operatingcosts. Grant revenue increased by 84.2%. This is attributable to the increase of operating costscovered by security related grants and timing.

• Capital contributions from federal and state grants for capitalized projects decreased during thecurrent fiscal year by $1,779 or 26.8%. This increase was mainly due to the collection ofpreviously approved grant funds associated with work on the deepening and widening of theCanaveral Port Authority channel and the North Cargo Piers 1 and 2 rehabilitation. These grantfunds contributed $4,855 to the change in net position in the current fiscal year.

Key elements of the increase in net position for the fiscal year ended September 30, 2016, are as follows.

• Overall fees and charges for services increased 10.0%. Included in overall fees and chargeswere revenues from cruise operations, recreation which increased 10.2%, 34.1% and 5.0%,respectively. Parking and land leases increased 2.0% and 13.4%, respectively. Other revenuesincreased 8.6%.

• Overall, non-operating revenues increase by 207.6%. Investment earnings and gains onequipment disposal decreased by 14.7% and 83.4%, respectively but were offset by an increasein grant revenues of 114.0%. A one-time gain from a legal settlement in fiscal year 2016accounted for 70.5% of the non-operating revenues.

• Capital contributions from federal and state grants for capitalized projects decreased during thecurrent fiscal year by $21,199 or 76.2%. This decrease was mainly due to the completion ofpreviously approved grant projects associated with work on our new cargo berths 5 and 6 andassociated storm water systems, refurbishment of cranes, deepening and widening of theAuthority’s channel as well as State Road 401 improvements and close out of fiscal years 2015and 2014 security projects. Also included in the projects was the Canaveral Inlet ManagementPlan with the state Department of Environmental Protection. These grant funds contributed$6,634 to the change in net position in the current fiscal year.

Total Revenues and Expenses

$30,000$35,000$40,000$45,000$50,000$55,000$60,000$65,000$70,000$75,000$80,000$85,000$90,000$95,000

$100,000

2017 2016 2015

Total Revenues

Total Expenses



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Capital Asset and Debt Administration

Capital assets. The Canaveral Port Authority’s capital assets as of September 30, 2017 and 2016, amount to $590,263 and $599,227, respectively, (net of accumulated depreciation). These balances include land, buildings, improvements, equipment, intangibles, and construction in progress. The total decrease in the Authority’s capital assets was 1.5% and increase of 14.6% for fiscal years 2017 and 2016, respectively.

Major capital asset events during the current fiscal year include the following: • Construction began or continued on several major projects for the Authority, including Cruise

Terminal 10 Upgrades, Maritime Center Tenant Improvement, SR401 Improvements and West Turning Basin Cargo Area Deepening. These additions totaled $25,198 and were offset by the total value of projects completed and moved from Construction in Progress to capital assets of $54,462.

Several major projects included in Construction in Progress were completed in fiscal year 2017 including: • Cruise Terminal 10 at a cost of $33,897• West Turning Basin Widening and Deepening at a cost of $3,657• Land, building and lease acquisitions at a cost of $3,751• Cruise Terminal 8 at a cost of $2,075• SR401 Improvements at a cost of $2,988

Additions for the year ended September 30, 2017, were offset by depreciation expense of $38,515 and amortization expense of $365.

Major capital asset events for the fiscal year ended September 30, 2016, were as follows: • Construction began or continued on several major projects for the Authority, including, extensive

Cruise Terminal 5 and 10 renovations, Cruise Terminal 8 upgrades, Marlin Street improvements, automobile terminal, purchase of the off port distribution and warehouse facility, Northside roadway design and cargo backup areas as well as the West Turning Basin Widening and Deepening. These additions totaled $109,933 and were offset by the total value of projects completed and moved from Construction in Progress to capital assets of $137,005.

Several major projects included in Construction in Progress were completed in fiscal year 2016 including: • Cruise Terminal 5, 8, and 10 at a cost of $44,625• West Turning Basin Widening and Deepening at a cost of $44,037• Northside Terminal Backup area and storm water improvements at a cost of $15,203• State Road 401 improvements at a cost of $704• Auto Terminal expansion at a cost of $7,956• Off-Port distribution and warehouse facility at a cost of $17,603

Additions for the year ended September 30, 2016, were offset by depreciation expense of $34,555 and amortization expense of $1,275.



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Canaveral Port Authority’s Capital Assets (net of depreciation)

(in thousands)

2017 2016 2015

Land 4,603 $ 4,603 $ 4,603 $ Buildings 159,699 143,655 99,924 Improvements other than:

Buildings 365,719 370,631 312,820 Equipment 35,748 33,619 33,338 Intangibles 1,602 1,082 2,213 Construction in progress 22,892 45,637 70,009

Total 590,263 $ 599,227 $ 522,907 $

Additional information on the Canaveral Port Authority’s capital assets can be found in note 3.C. on pages 16-17 of this report.

Long-term debt. At September 30, 2017 and 2016, the Canaveral Port Authority had total bonded debt outstanding of $289,433 and $246,427, respectively, net of unamortized discounts and premiums. The Canaveral Port Authority’s debt represents bonds secured solely by operating revenues (i.e., revenue bonds).

Canaveral Port Authority’s Outstanding Debt Revenue Bonds (in thousands)

2017 2016 2015

Revenue Refunding Bonds, Series 2006A -$ 9,760 $ 11,720 $ Revenue Bonds, Series 2006B - 1,330 1,330 Revenue Bonds, Series 2010 21,125 24,280 27,338 Revenue Bonds, Series 2012 4,024 5,049 5,988 Revenue Bonds, Series 2013 11,973 12,875 13,750 Revenue Bonds, Series 2013A 21,168 22,763 24,310 Revenue Bonds, Series 2014 97,825 99,325 102,325 Revenue Bonds, Series 2015 7,255 8,975 10,660 Revenue Bonds, Series 2016A 23,783 24,070 - Revenue Bonds, Series 2016B 38,000 38,000 - Revenue Bonds, Series 2016C 37,135 - - Revenue Bonds, Series 2016D 27,145 - - Less deferred amounts for discounts - - (51)

Total revenue bonds 289,433 $ 246,427 $ 197,370 $



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The Canaveral Port Authority’s total revenue bonds increased by $43,006 (17.5%) during the current fiscal year and increased by $49,057 (24.9%) during the prior year. The major factor for the increase during the current fiscal year was due to the issuance Revenue Bonds Series 2016C and 2016D in the amounts of $37,450 and $27,145, respectively offset by regular scheduled principal payments of $12,539. The major factor for the increase during the prior fiscal year was due to issuance of Revenue Bonds, Series 2016A and 2016B in the amounts of $24,070 and $38,000, respectively offset by regular scheduled principal payments on previously issued revenue bonds of $13,064. Revenue Bonds Series 2016A included proceeds that were used to refund the Series 2005 Bonds. The outstanding Revenue Refunding Bonds Series 2006A and Series 2006B of the Canaveral Port Authority are the only outstanding debt that are insured by Financial Guarantee Insurance Company (FGIC), which is currently not rated by the three national rating agencies. The underlying rating assigned by all three national rating agencies is in the “A” category.

Additional information on the Canaveral Port Authority’s long-term debt can be found in note 3.F. on pages 19 - 24 of this report.

Economic Factors and Next Year’s Budgets and Rates

• Charges for services are budgeted to increase 7.3% for the fiscal year ending September 30,2018 due to anticipated increase in cargo and cruise related business. Operating expensesare budgeted to increase 3.7%, due to a full year depreciation as a result of transfers ofcompleted assets from construction in progress and additions in staffing requirements tosupport operations. Over $54,000 in completed assets were transferred from construction inprogress to completed assets resulting in an increase of 3.9% in depreciation expense overcurrent year levels.

• Income before capital contributions, for the fiscal year ending September 30, 2018 isbudgeted at $3,374. This represents a 19.9% increase over the current year.

Requests for Information

This financial report is designed to provide a general overview of the Canaveral Port Authority’s finances for all those with an interest in the Authority’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, Canaveral Port Authority, 445 Challenger Road, Suite 301, Cape Canaveral, Florida, 32920.

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BASIC FINANCIAL STATEMENTS

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Statements of Net Position

Years Ended September 30, 2017 2016

Assets

Current assets:Cash and cash equivalents 50,759,598 $ 17,709,749 $ Restricted cash and cash equivalents 4,460,354 6,794,737 Investments 469,424 2,220,640 Accounts receivable – trade, net 6,297,666 5,841,025 Prepaid expenses 2,127,231 3,023,432 Due from other governmental units 3,468,027 1,231,041 Inventory 111,428 99,377 Other receivables, current 136,368 169,702

Total current assets 67,830,096 37,089,703

Noncurrent assets:Restricted cash and equivalents 5,234,736 1,824,500 Other receivables, long-term 688,799 751,406 Capital assets (net of accumulated depreciation and amortization):

Land 4,602,954 4,602,954 Buildings 159,698,999 143,654,840 Improvements other than buildings 365,719,391 370,631,311 Equipment 35,747,973 33,619,072

Intangible assets 1,602,435 1,081,947 Construction in progress 22,891,856 45,637,199

Total noncurrent assets 596,187,143 601,803,229

Total assets 664,017,239 638,892,932

Deferred outflows of resources:Deferred outflow – pension 182,589 180,340 Deferred loss on bond refunding 839,973 1,015,102

Total deferred outflows of resources 1,022,562 1,195,442

See notes to financial statements.

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Statements of Net Position (Continued)

Years Ended September 30, 2017 2016

Liabilities

Current liabilities:Accounts payable and accrued expenses 6,334,059 17,633,196 Unearned revenue 1,524,233 880,294 Payroll and sales taxes payable 146,817 131,588 Revenue bonds payable, current portion 11,147,709 11,256,854 Note payable, current portion - 108,027 Compensated absences, current portion 4,618 7,130 Line of credit 15,985,543 31,023,249 Other liabilities, current portion 156,743 173,511 Payable from restricted assets: Accrued interest payable 3,125,445 2,330,139 Revenue bonds payable, current portion 533,333 680,000

Total current liabilities 38,958,500 64,223,988

Noncurrent liabilities:Revenue bonds payable, less current portion 277,751,935 234,489,729 Compensated absences, less current portion 664,236 606,599 Net OPEB obligation 1,819,000 1,704,000 Other liabilities, long-term portion 918,399 1,001,874 Insurance reserve - 816,617Net pension liability 488,784 516,582

Total noncurrent liabilities 281,642,354 239,135,401

Total liabilities 320,600,854 303,359,389

Deferred inflows of resources:Deferred inflow – pension 117,859 75,715

Total deferred inflows of resources 117,859 75,715

Net position:Net investment in capital assets 301,670,604 305,846,091 Restricted for debt service 5,234,736 1,824,500 Unrestricted 37,415,748 28,982,679

Total net position 344,321,088 $ 336,653,270 $


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Statements of Revenues, Expenses and Changes in Net Position

Years Ended September 30, 2017 2016Operating revenues:

Fees and charges for services 93,279,519 $ 85,478,213 $

Operating expenses:Operations 6,943,647 6,650,628 Facilities 10,603,744 8,906,166 Public safety 8,676,092 7,867,211 Parks and recreation 1,456,981 1,475,926 Exploration Tower 631,746 788,997 Fire training facility 190,165 179,964 Commission 327,307 458,217 Executive 1,973,702 1,906,848 Finance and accounting 1,654,795 1,556,369 Administrative services 5,853,782 4,445,721 Engineering and environmental 5,632,860 1,935,733 Business development 1,174,513 1,519,800 Tenant development 630,246 1,111,560 Communications 666,495 695,726 Depreciation 38,515,405 34,555,085 Amortization 365,005 1,274,811

Total operating expenses 85,296,485 75,328,762

Operating income 7,983,034 10,149,451

Non-operating revenues:Investment earnings 445,598 164,880 Grant revenue 288,411 156,592 Gain on legal settlement 369,850 811,944 Gain on sale/disposal of assets 3,629,087 17,922

Total non-operating revenues 4,732,946 1,151,338

Non-operating expenses:Interest expense 8,725,519 6,976,059 Amortization of bond discounts 175,129 226,421 Loss on disposal of capital assets 78,981 626,509 Commissions and fees 878,113 295,368 Grant administration fee 45,000 40,000

Total non-operating expenses 9,902,742 8,164,357

Income before capital contributions and special item 2,813,238 3,136,432

Capital contributions 4,854,580 6,634,056 Change in net position 7,667,818 9,770,488

Net position, beginning of year 336,653,270 326,882,782

Net position, end of year 344,321,088 $ 336,653,270 $


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Statements of Cash Flows

Years Ended September 30, 2017 2016Cash flows from operating activities:

Cash received from customers and users 93,562,758 $ 86,164,815 $ Cash paid to suppliers for goods and services (34,413,067) (31,066,733) Cash payments to employees for services (11,111,594) (10,088,344)

Net cash provided by operating activities 48,038,097 45,009,738

Cash flows from non-capital financing activities:Grant revenue received 288,411 156,592

Net cash provided by non-capital financing activities 288,411 156,592

Cash flows from capital and related financing activities:Interest paid on revenue bonds (7,941,204) (7,248,413) Proceeds from revenue bonds 64,595,000 62,070,000 Costs of bond issuance (1,053,242) (521,789) Principal payments on revenue bonds (21,588,605) (13,064,689) Acquisition and construction of capital assets (43,163,457) (109,228,424) Proceeds from the sale of capital assets 3,629,087 17,922 Repayments on line of credit (15,037,706) - Net draws on line of credit - 19,618,540Contributed capital 4,270,534 11,052,468Principal payments on note payable (108,027) (122,718)

Net cash used in capital and related financing activities (16,397,620) (37,427,103)

Cash flows from investing activities:Interest received on investments 445,598 164,880 Sale of investments 2,220,640 5,463,444 Purchase of investments (469,424) (2,220,640)

Net cash provided by investing activities 2,196,814 3,407,684 Net increase in cash and cash equivalents 34,125,702 11,146,911

Cash and cash equivalents:Beginning of year 26,328,986 15,182,075

End of year 60,454,688 $ 26,328,986 $ - -

(Continued)

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Statements of Cash Flows (Continued)

Years Ended September 30, 2017 2016Reconciliation of operating income to net cash provided by

operating activities:Operating income 7,983,034 $ 10,149,451 $ Adjustment to reconcile operating income to net cash

provided by operating activitiesDepreciation expense 38,515,405 34,555,085 Amortization expense 365,005 1,274,811 Gain on sale of assets 78,981 608,587 Grant administration (45,000) (40,000) Gain on legal settlement 369,850 811,944 (Increase) decrease in assets:

Accounts receivable (456,641) 425,744 Inventory (12,051) (61,432) Other receivables, current 95,941 118,897 Prepaid expenses 896,201 (30,989) Deferred outflows of resources – pension 172,880 (104,552)

Increase (decrease) in liabilities:Accounts payable and accrued expenses 147,713 (3,500,714) Unearned revenue 643,939 141,961 Compensated absences 55,125 27,074 Net OPEB obligation 115,000 113,000 Net pension liability (27,798) 123,655 Deferred inflows of resources – pension 42,144 (2,868) Other liabilities (100,243) (160,103) Payroll and sales tax payable 15,229 27,700 Project insurance liability (816,617) 532,487

Total adjustments 40,055,063 34,860,287

Net cash provided by operating activities 48,038,097 $ 45,009,738 $

Supplemental schedule of noncash investing, capital and financing activities:During 2017 and 2016, the Authority recorded an unrealized gain (loss) on investments of $232,538 and $1,440, respectively.

During 2017 and 2016, the Authority's balance in due from other governmental units relating to capital contributions is $1,815,087 and $1,231,041, respectively.On September 30, 2017 and 2017 the Authority had capital asset additions included in accounts

payable of $2,531,101 and $13,977,951 respectively.


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Notes to Financial Statements

Note Contents PAGE

1. Summary of Significant Accounting PoliciesA. Reporting Entity 9 B. Measurement, Focus, Basis of Accounting and Financial

Statement Presentation 9 C. Assets, Liabilities and Net Position 9 D. Revenues and Expenses 12

2. Budgetary Information 12

3. Detail NotesA. Deposits and Investments 13 B. Restricted Assets and Reserved for Debt Service 15 C. Capital Assets 16 D. Accounts Payable and Accrued Expenses 18 E. Other Liabilities 18 F. Revenue Bonds Payable 19 G. Note Payable 25 H. Line of Credit 25 I. Changes in Long-term Liabilities 26 J. Restricted Net Position 26 K. Retirement Plan 27 L. Defined Contribution Plan 35 M. Other Postemployment Benefits 36 N. Leasing and Operating Agreement Arrangements

With Authority as Lessor 39 O. Major Customers 39 P. Risk Management 39 Q. Concentration – Collective Bargaining Unit 40 R. Capital Contributions 40

4. Commitments and ContingenciesA. Construction 40 B. Marine Terminal Leases 40 C. Litigation 41 D. E.

Employment Agreement Grants Programs

41 41

5. Security Contract 41

6. Future Accounting Pronouncements 42

7. Subsequent Events 42

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Note 1. Summary of Significant Accounting Policies

A. Reporting Entity

The Canaveral Port Authority (the Authority) is the governing body of the Canaveral Harbor Port Authority, an independent special taxing Authority and a political subdivision of the state of Florida which was established in 1953 by Chapter 28922, Laws of Florida, and Special Acts of 1953, as amended in 2014. The Authority is composed of one commissioner elected from each of the five districts created by the Act.

B. Measurement Focus, Basis of Accounting and Financial Statement Presentation

The Authority is a special purpose government entity engaged in business type activities and uses a single enterprise fund for the presentation of its financial statements. Proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows.

The Authority operates as an enterprise fund that accounts for the construction, operation and maintenance of the Authority. An enterprise fund is a type of proprietary fund that provides services to the general public. This fund is used to account for the acquisition, operation and maintenance of governmental facilities and services which are entirely or predominantly self-supported by user charges. The operations of the Authority are accounted for in such a manner as to show a profit or loss similar to comparable private enterprises.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Authority are fees and charges for cruise ships, cargo ships and land leases. Operating expenses include costs to operate and maintain facilities of the Authority, administrative expenses and depreciation and amortization expenses related to long-lived assets. All revenues and expenses not meeting these definitions are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the Authority’s policy to use restricted resources first, then unrestricted resources as they are needed.

C. Assets, Liabilities and Net Position

1. Cash and Cash Equivalents

State statutes authorize the government to invest in the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, SEC registered money market funds with the highest credit quality rating, interest-bearing time deposits or savings accounts in qualified public depositories and direct obligations of the U. S. Treasury.



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Note 1. Summary of Significant Accounting Policies (Continued)

C. Assets, Liabilities and Net Position (Continued)

1. Cash and Cash Equivalents (Continued)

The Authority invests certain surplus funds in an external investment pool, the Local Government Surplus Funds Trust Fund (the State Pool). The State Pool is administered by the Florida State Board of Administration (the SBA), who provides regulatory oversight. The Florida PRIME (formally LGIP) has adopted operating procedures consistent with the requirements for a 2a7-like fund. The Authority’s investment in the Florida PRIME is reported at amortized cost. The fair value of the Authority’s position in the pool is equal to the value of pooled shares.

Cash and cash equivalents include cash deposits, short term investments with original maturities of three months or less from the date of acquisition and investments held in the Florida PRIME.

2. Accounts and Other Receivables

Management considers most accounts and other receivables to be fully collectible; however the Authority has created an allowance for those, where based upon historical attempts at collection, it deems collection to be unlikely. The allowance for the years ended September 31, 2017 and 2016, were $25,000 and $15,000, respectively.

3. Inventory

Inventory is stated at cost, using the first-in, first-out (FIFO) inventory method.

4. Capital Assets

Capital assets are defined by the Authority as assets with an initial cost of more than $1,000 and an estimated useful life in excess of one year. Such assets are recorded at cost, if purchased and at acquisition value at date of gift, if donated. Major additions are capitalized while maintenance and repairs, which do not improve or extend the life of the respective assets, are charged to expense. Contributions received in aid of construction are credited to capital contributions and do not reduce the cost of the assets acquired with such contributions. Costs associated with deepening and widening the channel increases the potential service utility of the port and is recorded as a non-depreciable capital assets.

Depreciation is recognized on the straight-line method over the estimated useful lives of the assets. The following estimated useful lives are used for depreciation purposes:

Range of LivesClassification (Years)

Buildings 30Improvements other than buildings 5-40Equipment 3-20



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Note 1. Summary of Significant Accounting Policies (Continued) C. Assets, Liabilities and Net Position (Continued)

5. Deferred outflows of resources

The deferred amount for loss on bond debt refunding is classified as deferred outflows of resources and was $839,973 and $1,015,102 at September 30, 2017 and 2016, respectively.

The deferred outflows related to pensions are an aggregate of items related to pensions as calculated in accordance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. They consist of contributions subsequent to the measurement date, difference between expected and actual experience, effect of changes and assumptions, net difference between actual and projected investment earnings and change in proportionate share. Total deferred outflows of resources related to pensions were $182,589 and $180,340, for the years ended September 30, 2017 and 2016, respectively.

6. Restricted Assets

Debt proceeds and funds set aside for payment of revenue bonds and construction projects are classified as restricted assets on the statement of net position because their use is limited by applicable debt covenants.

7. Compensated Absences

All permanent employees of the Authority are eligible for annual leave. Each employee working a normal week earns vacation leave at certain rates depending on the employee’s length of service. All annual leave is accrued when earned in the statement of net position. There is no liability for unpaid accumulated sick leave since the Authority does not have a policy to pay such amounts upon termination.

8. Deferred inflows of resources

The deferred inflows related to pensions are an aggregate of items related to pensions as calculated in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions. They consist of differences between expected and actual experience, effect of changes of assumptions, net difference between actual and projected investment earnings and change in proportionate share. Total deferred inflows of resources related to pensions were $117,859 and $75,715, respectively, for the years ended September 30, 2017 and 2016.

9. Net Position – Net Investment in Capital Assets

The net investment in capital assets component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvements of those assets and any deferred losses on bond refunding.

10. Net Position – Restrictions

The Authority’s statement of net position reports a restriction on net position that is maintained for a specific purpose. The nature and purpose of this restriction represent, in accordance with legal restrictions, amounts for payment of principal and interest maturing in later years.



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Note 1. Summary of Significant Accounting Policies (Continued) C. Assets, Liabilities and Net Position (Continued)

11. Net Position – Unrestricted

At September 30, 2017 and at the end of the prior year, the Authority had an unrestricted net position and continued to be funded for normal operations. The Authority made capital investments that were expected to have a significant return on investment.

D. Revenues and Expenses

1. Operating Revenues and Expenses

Operating revenues are recorded when earned and expenses are recorded when incurred. Revenues and expenses relating to the Authority’s property and operations included wharfage, dockage, line handling, water services, crane rentals, property leases, commercial vehicle, parks and recreation entrance and usage fees, fire training, parking fees and other port services. All other revenues and expenses are classified as non-operating. Operating revenues and expenses are reported in the statement of revenues, expenses and changes in net position.

2. Grants

Grants restricted for capital acquisition and construction are recorded as capital contributions. Grant revenue that can be used for operating purposes is recognized when earned. Both are considered earned when all applicable eligibility requirements have been met and it is earned by the Authority.

3. Amortization

The Authority recognizes amortization on these intangible assets as follows:

Category Period (Years) Method

Deferred expenses 3-30 Straight-lineSoftware 10 Straight-lineTrademarks 5 Straight-line

Capitalized Interest

The Authority’s policy is to capitalize interest costs related to construction projects in accordance with generally accepted accounting principles. The net effect of interest expense and interest income generated from borrowings used for construction projects in progress are capitalized through the date the project is substantially complete and ready for its intended use. During the years ended September 30, 2017 and 2016, $799,101 and $0 of interest expense was capitalized.

Note 2. Budgetary Information The Authority’s enabling legislation requires adoption of an annual operating budget. The Authority adopts an annual operating and capital improvement budget resolution prior to September 30, for the next ensuing fiscal year. The Authority’s budgets are prepared on the accrual basis of accounting which is consistent with generally accepted accounting principles. Operating budgets for the enterprise fund are based on level of service expectations. Capital improvement projects are budgeted to provide control over authorized project expenses and ensure legal compliance.



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Note 2. Budgetary Information (Continued) Budget control is maintained at the departmental level. Actions which change the annual budget must be authorized by the Board of Commissioners. Budget amounts have been adjusted for legally authorized revisions of the annual budgets approved during the year. The Authority’s schedule of revenues, expenses and income before capital contributions compared with the legally adopted budget is presented as supplementary information.

The Authority has statutory authority to levy ad valorem taxes up to three (3) mills annually on all taxable property within the Authority’s district boundaries for operation, maintenance and improvement of Authority facilities. The Authority has not levied property taxes since 1986 and does not expect to do so in the foreseeable future.

Note 3. Detail Notes

A. Deposits and Investments

At September 30, 2017 and 2016, the carrying amount of the Authority’s recorded deposits with banks, investments and savings and loans was $11,405,934 and $3,200,050, respectively, and the bank balance was $12,763,850 and $7,840,327, respectively. In addition, the Authority held $500 of petty cash at September 30, 2017 and 2016.

Florida Statues, Chapter 280, Florida Security for Public Deposit Act (the Act) prescribes the deposit authority of the Authority’s policy conforms to state statue. Deposits whose value exceeds the limits of federal depository insurance are entirely insured or collateralized pursuant to Florida Statues, Chapter 280. Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral ofthe depository to be held subject to his or her order. The Treasurer, by rule, shall establish minimumrequired collateral pledging levels. The pledging level may range from 25% to 200% of the averagemonthly balance of public deposits with an approved financial institution. The Public Deposit SecurityTrust Funds have a procedure to allocate and recover losses in the event of default or insolvency. TheAuthority depositories at year end were designated as qualified public depositories. All bank balanceswere covered by the federal deposit insurance and the banks’ participation in the Florida Security forPublic Deposit Act.

Credit Risk

The Authority’s investment policy addresses credit risk by restricting the types of investments in which it can invest, consistent with limitations defined in Florida Statutes, as described in Note 1.C.1.

Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. This risk is generally measured by the assignment of a rating by a nationally recognized statistical rating organization. The Authority’s investment policy permits the following investments, which are limited to credit quality ratings from nationally recognized rating agencies as described below:

Commercial paper of any United States company or foreign company domiciled in the United States that is rated, at the time of purchase, “Prime-1” by Moody’s and “A-1” by Standard & Poor’s (prime commercial paper), or equivalent as provided by two nationally recognized rating agencies. If the commercial paper is backed by a letter of credit (LOC), the long-term debt of the LOC provider must be rated “A” or better by at least two nationally recognized rating agencies.



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Note 3. Detail Notes (Continued) A. Deposits and Investments (Continued)

Credit Risk (Continued)

Corporate bonds issued by corporations organized and operating within the United States or by depository institutions licensed by the United States that have a long-term debt rating, at the time of purchase, at a minimum “A” by Moody’s and a minimum long-term debt rating of “A” by Standard & Poor’s, or equivalent as provided by two nationally recognized rating agencies.

Custodial Credit Risk

For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.

The Authority’s investment policy requires securities be held by a third party custodian and be properly designated as an asset of the Authority and held in the Authority’s name. As of September 30, 2017 and 2016, the Authority’s investment portfolio was held with a third-party custodian, and designated as Authority assets, as required by the Authority’s investment policy.

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. In accordance with the Authority’s investment policy, investments should be invested to match investment maturities with known cash needs and anticipated cash flow requirements. The Authority’s investment policy does not limit the maturities of investments to reduce the interest rate risk.

Fair Value Measurements

The Authority’s investments are reported at fair value using quoted market price or other fair value techniques as required by FASB Statement 72, Fair Value Measurements. Fair value is defined by GASB Statement No. 72, as the price that would be received to sell an asset or to transfer a liability in an orderly transaction between market participants at the measurement date. Categorizes within the fair value hierarchy include: Level 1 inputs are quoted priced in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 are unobservable inputs.

As of September 30, 2017 and 2016, the Authority reported investments at fair value. Fair value for all of the Authority investments was measured using Level 1 techniques, excluding Florida PRIME, which is valued using amortized cost and the certificates of deposits which are not subject to fair value hierarchy.

Concentration of Credit Risk

The Authority’s investment policy does not specifically address concentration of credit risk. However, the policy indicates that investments should be diversified to control the risk of loss resulting from over concentration of assets.



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Note 3. Detail Notes (Continued) A. Deposits and Investments (Continued)

At September 30, 2017, the Authority had the following investments:

Investment Type Fair Value Less than 1 1-5 6-10 Rating Agency

SBA Florida PRIME 1,162,721 $ 1,162,721 $ -$ -$ AAAm S&PCertificates of Deposit 469,424 469,424 - - Not Rated - U.S. Government Securities 2,079,183 2,079,183 - - AA+ S&PAgency Discount Notes 45,806,850 45,806,850 - - AA+ S&P

49,518,178 $ 49,518,178 $ -$ -$

Investment Maturities (in years)

At September 30, 2016, the Authority had the following investments:

Investment Type Fair Value Less than 1 1-5 6-10 Rating Agency

SBA Florida PRIME 1,150,228 $ 1,150,228 $ -$ -$ AAAm S&PCertificates of Deposit 469,035 469,035 - - Note Rated - U.S. Government Securities 2,599,632 2,199,648 399,984 - AA+ S&PAgency Discount Notes 20,178,121 20,178,121 - - AA+ S&PAgency Notes 952,060 952,060 - - AA+ S&P

25,349,076 $ 24,949,092 $ 399,984 $ -$

Investment Maturities (in years)

B. Restricted Assets and Reserved for Debt Service

Debt proceeds and funds set aside for payment of revenue bonds and construction projects are classified as restricted cash and cash equivalents and investments since their use is limited by applicable bond indentures.

2017 2016Series 2010 Bond, Series 2012 Bond, Series 2013 Bond, Series 2013A, Series 2014 Bond, Series 2015 Bond, Series 2016A, 2016B, 2016C,and 2016D Bond Debt Service and Reserve:

Daily Investment Pool 6,684,524 $ 2,658,767 $ Construction Trust Account - 5,960,470Series 2016C 22,217,763 - Series 2016D 11,696,623 -

Total 40,598,910 $ 8,619,237 $



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Note 3. Detail Notes (Continued) C. Capital Assets

Capital asset activity for the years ended September 30, 2017 and 2016, was as follows:

Balance BalanceOctober 1, 2016 Increases Decreases September 30, 2017

Capital assets, not being depreciated/amortized:Land 4,602,954 $ -$ -$ 4,602,954 $ Construction in progress 45,637,199 31,716,607 (54,461,950) 22,891,856

Total capital assets, not beingdepreciated/amortized 50,240,153 31,716,607 (54,461,950) 27,494,810

Capital assets, being depreciated/amortized:Buildings 171,056,533 25,566,552 (3,117,730) 193,505,355 Improvements other than buildings 573,792,796 16,801,801 (5,200,413) 585,394,184 Equipment 67,750,032 11,208,104 (490,671) 78,467,465 Intangible assets 17,101,849 885,494 - 17,987,343

Total capital assets beingdepreciated/amortized 829,701,210 54,461,951 (8,808,814) 875,354,347

Less accumulated depreciation/amortization for:Buildings (27,401,693) (7,801,462) 1,396,799 (33,806,356) Improvements other than buildings (203,161,485) (21,714,112) 5,200,804 (219,674,793) Equipment (34,130,960) (8,999,831) 411,299 (42,719,492) Intangible assets (16,019,902) (365,005) - (16,384,908)

Total accumulated depreciation/amortization (280,714,040) (38,880,410) 7,008,902 (312,585,549) Total capital assets, being depreciated/

amortized, net 548,987,170 15,581,541 (1,799,912) 562,768,798 Capital assets, net 599,227,323 $ 47,298,147 $ (56,261,862) $ 590,263,608 $

2017



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Note 3. Detail Notes (Continued) C. Capital Assets (Continued)

Balance BalanceOctober 1, 2015 Increases Decreases September 30, 2016

Capital assets, not being depreciated/amortized:Land 4,602,954 $ -$ -$ 4,602,954 $ Construction in progress 70,009,436 112,777,097 (137,149,334) 45,637,199

Total capital assets, not beingdepreciated/amortized 74,612,390 112,777,097 (137,149,334) 50,240,153

Capital assets, being depreciated/amortized:Buildings 122,146,379 49,885,112 (974,958) 171,056,533 Improvements other than buildings 500,399,150 77,841,999 (4,448,353) 573,792,796 Equipment 58,808,718 9,278,176 (336,862) 67,750,032 Intangible assets 16,957,800 144,049 - 17,101,849

Total capital assets beingdepreciated/amortized 698,312,047 137,149,336 (5,760,173) 829,701,210

Less accumulated depreciation/amortization for:Buildings (22,222,969) (6,148,415) 969,691 (27,401,693) Improvements other than buildings (187,579,333) (19,412,004) 3,829,852 (203,161,485) Equipment (25,470,414) (8,994,666) 334,120 (34,130,960) Intangible assets (14,745,090) (1,274,812) - (16,019,902)

Total accumulated depreciation/amortization (250,017,806) (35,829,897) 5,133,663 (280,714,040) Total capital assets, being depreciated/

amortized, net 448,294,241 101,319,440 (626,510) 548,987,170 Capital assets, net 522,906,631 $ 214,096,537 $ (137,775,844) $ 599,227,323 $

2016

Intangible assets include deferred expenses, which consist of maintenance dredging; costs incurred in developing an inlet management plan; costs of constructing a spoil dike and an off-shore sand berm; and beach restoration projects. Intangible assets also consist of computer software and a trademark.



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Note 3. Detail Notes (Continued) D. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses are comprised of the following as of September 30:

2017 2016

Accounts and contracts payable 4,770,743 $ 14,054,815 $ Retainages payable 1,086,366 2,857,391 Accrued payroll and employee benefits 476,950 720,990

6,334,059 $ 17,633,196 $

E. Other Liabilities

In 1995, the Authority discovered a toxic, contaminated area east of the Authority’s former office. During fiscal year 1996, the Authority assessed the degree of contamination at the site, removed contaminated materials and prepared a contamination assessment report. A liability for $1,100,000 was recorded on the balance sheet at September 30, 1996. The pollution remediation obligation is an estimate and subject to changes resulting from price increases or reductions, technology, or changes in applicable laws or regulations.

During fiscal year 1996, the Authority reached an agreement, in writing, with the previous lessee of the contaminated site to indemnify the Authority for 75% of the future out-of-pocket costs incurred to monitor and clean-up the site. At September 30, 1996, the Authority accrued a receivable of $1,299,561 for amounts due under this agreement.

During the ensuing years, the Authority retained the services of a professional site assessment and remediation firm to determine an estimated cost to complete the clean-up and recognized any additional expenses, if any, with adjustments recorded annually to the respective liability and receivable accounts.

During fiscal year 2009, the Authority implemented GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, which required a change in the methodology used to calculate the Authority’s liability related to cleanup of the contaminated area. The Authority is now required to utilize the expected cash flow technique, which measures the liability as the sum of probability-weighted amounts in a range of possible estimated amounts. As a result of implementing GASB Statement No. 49 and new estimates provided by the engineers, the Authority accrued an additional liability of approximately $1,132,000 to complete the soil decontamination. A corresponding additional receivable of approximately $849,000 was accrued as the estimated receivable from the former lessee based on the agreement reached in 1996.

In fiscal year 2012, during a collaborative meeting between the Authority, professional site assessment and remediation firm, all related subcontracting firms and with feedback from a state monitoring agency, it was determined that the remediation plan in place was producing successful remediation of the site. It was agreed to maintain the current estimates for a period of five years, barring any unforeseen events. It was further agreed to meet again in five years to review the status of the plan and remediation progress. The group reconvened in September 2016 and again confirmed the current estimates in place were sufficient, and would remain the same with plans to meet again for review in five years. During fiscal years 2017, 2016, 2015, 2014, 2013 and 2012, there were no additional estimated costs for cleanup and therefore no additional accruals necessary.



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Note 3. Detail Notes (Continued) E. Other Liabilities (Continued)

At September 30, 2017 and 2016, the liability balances for the clean-up are $1,075,142 and $1,175,385, respectively. These liabilities are reported as other liabilities, current portion in the amount of $156,743 and $173,511 at September 30, 2017 and 2016, respectively, and as other liabilities, long-term portion in the amount of $918,399 and $1,001,874, respectively. In accordance with GASB Statement No. 49, the September 30, 2017 pollution remediation liability of $1,075,142 is based on the weighted average probability of expected outlays (($302,407 x 0.05) + ($767,436 x 0.45) + ($1,298,284 x 0.45) + ($2,608,961 x 0.05)) for a total other liabilities balance for the clean-up of $1,075,142. The $1,175,385 liability for the year ended September 30, 2016 is based on the weighted average probability of expected outlays as follows: (($330,602 x 0.05) + ($838,989 x 0.45) + ($1,419,331 x 0.45) + ($2,285,211 x 0.05)).

As of September 30, 2017, management believes the actual liability recorded in the Statement of Net Position will cover the future costs expected to be incurred for the clean-up.

The receivable balances remaining at September 30, 2017 and 2016, are $825,167 and $921,108, respectively. These receivables are included in other receivables, current in the amount of $136,368 and $169,702 at September 30, 2017 and 2016, respectively, and in other receivables, long-term in the amount of $688,799 and $751,408, respectively.

A reconciliation of changes in the aggregate liabilities for the claims related to the contamination follows:

Claims Liability Fiscal Year 2017 Fiscal Year 2017 Claims LiabilityOctober 1, 2016 Incurred Claims Payment on Claims September 30, 2017

1,175,385 $ -$ (100,243) $ 1,075,142 $

Claims Liability Fiscal Year 2016 Fiscal Year 2016 Claims LiabilityOctober 1, 2015 Incurred Claims Payment on Claims September 30, 2016

1,335,488 $ -$ (160,103) $ 1,175,385 $

F. Revenue Bonds Payable

The revenue bonds are secured by and payable from the gross operating revenues of the Authority. The proceeds of these issues were used for capital improvements and refunding certain outstanding issues of the Authority.

The resolutions applicable to the revenue bonds require the establishment of various bond principal and interest sinking funds and reserve accounts with various requirements for deposits. These requirements have been met for the fiscal years ended September 30, 2017 and 2016.



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Note 3. Detail Notes (Continued) F. Revenue Bonds Payable (Continued)

A summary of long-term debt at September 30, 2017 and 2016, is as follows:

2017 2016

Port Revenue Refunding Bonds, Series 2006A -$ 9,760,000$ Port Improvement Revenue Bonds, Series 2006B - 1,330,000 Port Improvement Revenue Bonds, Series 2010 21,124,729 24,279,583 Port Revenue Refunding Bonds, Series 2012 4,024,000 5,049,000 Port Improvement Revenue Bonds, Series 2013 11,973,000 12,875,000 Port Improvement Revenue Bonds, Series 2013A 21,168,000 22,763,000 Port Improvement Revenue Bonds, Series 2014 97,825,000 99,325,000 Port Revenue Refunding Bonds, Series 2015 7,255,000 8,975,000 Port Revenue Refunding Bonds, Series 2016A 23,783,248 24,070,000 Port Revenue Refunding Bonds, Series 2016B 38,000,000 38,000,000 Port Improvement and Refunding Revenue Bonds, Series 2016C 37,135,000 - Port Improvement Revenue Bonds, Series 2016D 27,145,000 -

Total revenue bonds 289,432,977 246,426,583 Less: current maturities (11,681,042) (11,936,854) Revenue bonds payable, less current portion 277,751,935 $ 234,489,729 $

PORT REVENUE REFUNDING BONDS, SERIES 2006A

On March 27, 2006, the Authority issued Port Revenue Refunding Bonds, Series 2006A in the principal amount of $16,915,000 (i) to currently refund all of the Authority’s Port Improvement Revenue Refunding Bonds, Series 1996A and (ii) to pay bond issuance costs. Gross revenues are pledged for repayment of these bonds.

The Series 2006A bonds bear interest at rates ranging from 3.4% to 5.0% per annum, payable semi-annually on June 1 and December 1. Principal is due annually beginning June 1, 2006, in amounts increasing from $165,000 to $1,075,000 at final maturity in 2021.

The Series 2006A bonds maturing on or after June 1, 2017, are subject to redemption prior to their respective dates of maturity, on or after June 1, 2016, at the option of the Authority, in whole or in part, at a redemption price equal to 100% of the principal amount of the Series 2006A bonds to be redeemed, plus accrued interest to the redemption date.

PORT IMPROVEMENT REVENUE BONDS, SERIES 2006B

On March 27, 2006, the Authority issued Port Improvement Revenue Bonds, Series 2006B in the principal amount of $1,330,000 to: (i) fund various capital improvements and (ii) to pay bond issuance costs. Gross revenues are pledged for repayment of these bonds.

The Series 2006B bonds bear interest at a rate of 3.40% to 4.25% per annum, payable semi-annually on June 1 and December 1. Principal is due June 1, 2021.

The Series 2006B bonds maturing on or after June 1, 2017, are subject to redemption prior to their respective dates of maturity, on or after June 1, 2016, at the option of the Authority, in whole or in part, at a redemption price equal to 100% of the principal amount of the Series 2006B bonds to be redeemed, plus accrued interest to the redemption date.



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PORT IMPROVEMENT REVENUE BONDS, SERIES 2010

On December 21, 2010, the Authority issued Port Improvement Revenue Bonds, Series 2010 in the principal amount of $42,000,000 to fund various capital improvements. Gross revenues are pledged for repayment of these bonds.

The Series 2010 bonds bear interest at a rate of 3.144% per annum, payable semi-annually on June 1 and December 1. Principal is due annually beginning June 1, 2011, in amounts increasing from $2,702,460 to $3,798,771 at final maturity in 2023.

On or prior to June 1, 2017, the Series 2010 bonds are subject to redemption upon notice prior to maturity, at election of the Issuer, as a whole at any time, or in part on any interest date, at the redemption price of 100% of the principal amount being redeemed, plus accrued interest to the redemption date, plus the cost of prepayment as laid out in the bond document. At any time after June 1, 2017, the Series 2010 bonds shall be subject to redemption upon notice prior to maturity at the election of the Issuer, as a whole at any time, or in part on an interest date, at the redemption price of 100% of the principal amount being redeemed, plus accrued interest to the redemption date.

PORT REVENUE REFUNDING BONDS, SERIES 2012

On March 6, 2012, the Authority issued Port Revenue Refunding Bonds, Series 2012 in the principal amount of $8,747,000: (i) to currently refund all of the Authority’s Port Improvement Revenue Refunding Bonds, Series 2002B and (ii) to pay bond issuance costs. Gross revenues are pledged for repayment of these bonds.

The Series 2012 bonds bear interest at a fixed rate of 1.75% per annum, payable semi-annually on June 1 and December 1. Principal is due annually beginning June 1, 2012, in amounts increasing from $27,000 to $1,030,000 at final maturity in 2021.

The Series 2012 bonds maturing on or after June 1, 2016, are subject to redemption upon notice prior to maturity, in whole or in part on any interest date payment, at a redemption price set forth below, together with accrued interest to the redemption date.

Redemption Date Redemption Price

June 1, 2016 through May 31, 2017 101%June 1, 2017 and thereafter 100%


On November 15, 2013, the Authority issued Port Improvement Revenue Bonds, Series 2013 in the principal amount of $15,053,000 to fund the capital improvement project of a welcome center at the Cove. Gross revenues are pledged for repayment of these bonds.

The Series 2013 bonds bear interest at a rate of 3.10% per annum, payable semi-annually on June 1 and December 1. Principal is due annually beginning June 1, 2014, in amounts increasing from $454,000 to $1,262,000 at final maturity in 2028.



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PORT IMPROVEMENT REVENUE BONDS, SERIES 2013A

On November 15, 2013, the Series 2008 bonds were refinanced to the Series 2013A for $26,613,000. All the Series 2013A bonds now bear and interest rate of 3.10% per annum, payable semi-annually on June 1 and December 1. Principal is due semi-annually beginning December 1, 2013, in amounts increasing from $803,000 to $2,231,000 at final maturity in 2028. The difference in cash flows required to service the new debt versus the old debt is a decrease of approximately $872,416. The economic gain resulting from the refunding is $510,052.

At any time up to and including June 1, 2018, the Series 2013A bonds are subject to redemption in whole or in part on any principal due date, at the option of the Authority, for 103% of the principal amount being redeemed, plus accrued interest to the redemption date. At any time after June 1, 2018, the Series 2013A bonds shall be subject to redemption in whole only, at the option of the Authority, for 100% of the principal amount being redeemed, plus accrued interest to the redemption date.


On June 13, 2014, the Authority issued Port Improvement Revenue Bonds, Series 2014 in the principal amount of $105,000,000 to fund improvements to Cruise Terminal 1. Gross revenues are pledged for repayment of these bonds.

The Series 2014 bonds bear interest at a rate of 3.39% per annum, payable semi-annually on June 1 and December 1. Principal is due semi-annually beginning December 1, 2014, in amounts from $750,000 to $5,335,000 at final maturity in 2034.


PORT REVENUE REFUNDING BONDS, SERIES 2015

On March 3, 2015, the Authority issued Port Revenue Refunding Bonds, Series 2015 in the principal amount of $11,080,000: (i) to currently refund all of the Authority’s Port Revenue Refunding Bonds, Series 2005 and (ii) to pay bond issuance costs. Gross revenues are pledged for repayment of these bonds.



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The refunded bonds are considered defeased and the liability has been removed from the statement of net position. The reacquisition price exceeded the net carrying amount of the old debt by $20,730. This amount is included in the deferred loss on refunding.

The Series 2015 bonds bear interest at rates ranging from 2.08% per annum, payable semi-annually on June 1 and December 1. Principal is due annually beginning June 1, 2015, in amounts increasing from $420,000 to $1,870,000 at final maturity in 2021.

The Series 2015 bonds are subject to redemption prior to their respective dates of maturity, at any time, at the option of the Authority, in whole or in part, at redemption price equal to 100% of the principal amount of the Series 2015 bonds to be redeemed, plus accrued interest to the redemption date.

PORT REVENUE REFUNDING BONDS, SERIES 2016A

On May 26, 2016, the Authority issued Port Revenue Refunding Bonds, Series 2016A in the principal amount of $24,070,000: (i) to finance various cruise terminal improvements and other capital improvements and other capital investments previously financed using short-term funds (ii) to pay bond issuance costs. Gross revenues are pledged for repayment of these bonds.

The Series 2016A bonds bear interest at rates ranging from 2.35% per annum, payable semiannually on June 1 and December 1. Principal is due annually beginning June 1, 2022, in amounts increasing from $2,100,000 to $2,695,000 at final maturity in 2031.

PORT REVENUE REFUNDING BONDS, SERIES 2016B

On August 25, 2016, the Authority issued Port Revenue Refunding Bonds, Series 2016B in the principal amount of $38,000,000 (1) to finance various cruise terminal improvements and other capital investments a portion of which may have been previously financed using short term funds (ii) to pay bond issuance costs. Gross revenues are pledged for repayment of these bonds.

The Series 2016B bond bear interest at rates ranging from 2.19% per annum, payable semiannually on June 1 and December 1. Principal is due annually beginning June 1, 2022, in the amounts increasing from $1,775,000 to $5,040,000 at final maturity in 2031.

The Series 2016B bonds are subject to redemption prior to their respective dates of maturity, at any time, at the option of the Authority, in whole or in part, at redemption price equal to 100% of the principal amount of the Series 2016B bonds to be redeemed, plus accrued interest to the redemption date.

PORT IMPROVEMENT AND REVENUE REFUNDING BONDS, SERIES 2016C

On November 15, 2016, the Authority issued Port Improvement and Revenue Refunding Bonds, Series 2016C in the principal amount of $37,450,000: (i) to refund the Authority’s $16,915,000 Port Revenue Refunding Bonds, Series 2006A in which the outstanding amount was $9,760,000 and was redeemed on December 20, 2016 (ii) to currently refund all of the Authority’s Port Revenue Bonds Series 2006B in the amount of $1,330,000 (iii) to finance various cruise terminal improvements and a centralized maintenance and processing warehouse (iv) to pay bond issuance costs. Gross revenues are pledged for repayment of these bonds.



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Note 3. Detail Notes (Continued) G. Revenue Bonds Payable (Continued)

The Series 2016C bond bear interest at rates ranging from 4.00% per annum, payable semiannually on June 1 and December 1. Principal is due annually beginning June 1, 2017, in the amounts increasing from $315,000 to $2,650,000 at final maturity in 2046.

The Series 2016C bonds are subject to redemption prior to their respective dates of maturity, at any time, at the option of the Authority, in whole or in part, at redemption price equal to 100% of the principal amount of the Series 2016C bonds to be redeemed, plus accrued interest to the redemption date.

PORT IMPROVEMENT REVENUE BONDS, SERIES 2016D

On November 15, 2016, the Authority issued Port Improvement Revenue Bonds, Series 2016D in the principal amount of $27,145,000: (i) to finance an auto processing facility and vehicle staging area with roadway improvements (ii) to pay bond issuance costs.

The Series 2016D bond bear interest at rates ranging from 4.654% per annum, payable semiannually on June 1 and December 1. Principal is due annually beginning June 1, 2032, in the amounts increasing from $1,300,000 to $2,440,000 at final maturity in 2046.

The Series 2016D bonds are subject to redemption prior to their respective dates of maturity, at any time, at the option of the Authority, in whole or in part, at redemption price equal to 100% of the principal amount of the Series 2016D bonds to be redeemed, plus accrued interest to the redemption date.

FUTURE MATURITIES

Future maturities requirements for all outstanding revenue bonds payable, as of September 30, 2017, are as follows:

Principal Interest Total

2018 11,681,042 $ 9,363,621 $ 21,044,663 $ 2019 12,045,350 8,999,972 21,045,322 2020 12,399,873 8,645,814 21,045,687 2021 12,766,714 8,280,269 21,046,983 2022 12,855,227 7,906,659 20,761,886 2023 to 2027 72,176,771 33,300,326 105,477,097 2028 to 2032 79,523,000 21,989,174 101,512,174 2033 to 2037 37,070,000 11,361,641 48,431,641 2038 to 2042 19,790,000 6,721,853 26,511,853 2043 to 2046 19,125,000 2,105,745 21,230,745

Total 289,432,977 $ 118,675,074 $ 408,108,051 $

The total future principal and interest on all the bonds is $408,108,051 and the current principal and interest is $21,044,663. The current pledged revenue is $93,279,519. The current principal and interest due is 22.6% of current pledged revenue. The bonds may be redeemed at the option of the Authority.



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Note 3. Detail Notes (Continued) G. Note Payable

During 2007, the Authority entered into a $1,000,000 note payable agreement related to the purchase of certain capital assets. Monthly repayments of $11,102 are required for 120 months, which include interest at a fixed rate of 6%. The note matured on July 1, 2017 and final payment was made to fulfill this note.

H. Line of Credit

PNC Bank On March 2, 2015, the Authority authorized entering into an agreement with PNC bank for a line of credit not to exceed $30,000,000. On December 16, 2015, the Authority authorized an increase in the line of credit to $50,000,000. This line of credit was used for the pipeline, Brevard Crossings and Sunrise Marina purchase, auto processing design costs and west turning basin dredging costs. The interest rate on the debt is the highest of the: (i) the bank’s prime rate, (ii) Daily Libor + 100 basis points or (iii) Federal Funds Open Rate + 50 basis points.

On April 30, 2016, the Authority executed a Second Amendment that redefined Maturity Date in the Revolving Credit Agreement to July 29, 2016.

On August 25, 2016, the Authority executed a Third Amendment to the Revolving Credit Agreement that redefined the Maturity Date to December 15, 2016.

On December 20, 2016, the Authority adopted Resolution No. RES-2016-017-3, the Fourth Amendment which authorized the acceptance by the Authority of the Fourth Amendment which provided the Authority with new Authorized Amount in the aggregate amount not exceed Twenty Five Million Dollars and No Cents ($25,000,000) and redefined the Maturity Date to December 15, 2017.

The interest rate as of September 30, 2017 was based on the one-month LIBOR rate plus 50 basis points and was 1.94%. The balance at September 30, 2017 and 2016, is $0 and $19,037,706 respectively.

SUNTRUST On May 25, 2016, the Authority authorized entering into an agreement with SunTrust bank for a line of credit not to exceed $12,000,000. This line of credit was used to purchase the Titusville Logistics Center. The interest rate on the debt is the Index plus .75% per annum.

On September 25, 2016, the Authority approved an increase to revolving line of credit to a new ceiling of $16,000,000. This would be used to complete the purchase of the Titusville Logistics Center which was $16,375,967 at time of closing.

The interest rate as of September 30, 2017 and 2016, was 1.99% and 1.27% respectively. The line of credit balance at September 30, 2017 and 2016, was $15,985,543 and $11,985,543 respectively.



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Note 3. Detail Notes (Continued) I. Changes in Long-Term Liabilities

Long-term liability activity for the years ended September 30, 2017 and 2016, was as follows:

Balance Balance Due WithinOctober 1, 2016 Additions Reductions September 30, 2017 One Year

Revenue bonds payable 246,426,583 $ 64,595,000 $ (21,588,605) $ 289,432,978 $ 11,681,042 $ Note payable 108,027 - (108,027) - - Compensated absences 613,729 55,125 - 668,854 4,618 Net OPEB liability 1,704,000 115,000 - 1,819,000 - Other liabilities, long-term 1,175,385 - (100,243) 1,075,142 73,268 Project insurance liability 816,617 - (816,617) - - Net pension liability 516,582 - (27,798) 488,784 -

Long-term liabilities 251,360,923 $ 64,765,125 $ (22,641,290) $ 293,484,758 $ 11,758,928 $

Balance Balance Due WithinOctober 1, 2015 Additions Reductions September 30, 2016 One Year

Revenue bonds payable 197,421,272 $ 62,070,000 $ (13,064,689) $ 246,426,583 $ 11,936,854 $ For issuance discounts (51,293) - 51,293 - -

Note payable 230,745 - (122,718) 108,027 108,027 Compensated absences 586,655 27,074 - 613,729 7,130 Net OPEB liability 1,591,000 113,000 - 1,704,000 - Other liabilities, long term 1,335,488 - (160,103) 1,175,385 173,511 Project insurance liability 284,130 532,487 - 816,617 - Net pension liability 392,927 123,655 - 516,582 -

Long-term liabilities 201,790,924 $ 62,866,216 $ (13,296,217) $ 251,360,923 $ 12,225,522 $

J. Restricted Net Position

The following schedule lists the amounts of net position that are restricted as of September 30, 2017 and 2016, in accordance with the provisions of the respective bond indentures. These amounts represent restricted assets less certain current liabilities payable from restricted assets included in the various debt service, reserve, bond and interest sinking fund accounts.

2017 2016Restricted for Future Debt Service

Series 2006A -$ 1,691,500$ Series 2006B - 133,000Series 2016C 3,034,923 - Series 2016D 2,199,813 -

Total debt service restrictions 5,234,736 $ 1,824,500 $



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Note 3. Detail Notes (Continued) K. Retirement Plan (Continued)

Florida Retirement System:

General Information – The Authority participates in the Florida Retirement System (the System). Generally, membership is compulsory for all full time and part time employees hired prior to January 1, 1996. The employer paid all contributions through June 30, 2011. Effective July 1, 2011, employees were required to contribute 3% of gross salary. As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (Pension Plan) and the Retiree Health Insurance Subsidy (HIS Plan). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (Investment Plan) alternative to the FRS Pension Plan, which is administered by the State Board of Administration (SBA). As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, Authority government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature.

The State of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the website: www.dms.myflorida.com/workforce_operations/retirement/publications.

Pension Plan

Plan Description – The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees.

Benefits Provided – Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers’ class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their final average compensation based on the five highest years of salary for each year of credited service.



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For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of credited service for all these members and increasing normal retirement to age 65 or 33 years of service regardless of age for Regular, Senior Management Service, and Elected Officers’ class members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class members. Also, the final average compensation for all these members will be based on the eight highest years of salary.

As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is three% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement.

In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants.

Contributions – Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute 3% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates established by the Florida Legislature. These rates are updated as of July 1 of each year. Employer contribution rates ranged from 7.92% to 13.26% during 2017, 7.52% to 12.99% during 2016. The amount of covered payroll for the years ended September 30, 2017 and 2016, was $477,841 and $517,920, respectively. The Authority’s contributions to the System for the years ended September 30, 2017 and 2016, were $29,082 and $39,942, respectively and are equal to the required contributions for each year.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions – At September 30, 2017 and 2016, the Authority reported a liability of $329,722 and $327,425, respectively, for its proportionate share of the Pension Plan’s net pension liability. 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 July 1, 2017. The Authority’s proportionate share of the net pension liability was based on the Authority’s 2016-17 fiscal year contributions relative to the 2015-16 fiscal year contributions of all participating members. At June 30, 2017, the Authority’s proportionate share was .0011%, which was a decrease of .0002% from its proportionate share measured as of June 30, 2016.

For the fiscal years ended September 30, 2017 and 2016, the Authority recognized pension expense of $35,980 and $35,182 a pension benefit of $4,886 and $10,417, respectively. In addition the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



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Deferred Outflows Deferred InflowsSeptember 30, 2017 of Resources of ResourcesDifferences between expected and

actual experience 30,261 $ 1,826 $

Change of assumptions 110,810 -

Net difference between projected and actual - 8,171 earnings on Pension Plan investments

Changes in proportion and differencesbetween Authority Pension Plan contributionsand proportionate share of contributions 8,626 65,714

Authority Pension Plan contributions subsequentto the measurement date 7,910 -

Total 157,607 $ 75,711 $

Deferred Outflows Deferred InflowsSeptember 30, 2016 of Resources of ResourcesDifferences between expected and

actual experience 25,070 $ 3,049 $


Net difference between projected and actualearnings on Pension Plan investments 84,635 -

Changes in proportion and differencesbetween Authority Pension Plan contributionsand proportionate share of contributions 12,376 52,283

Authority Pension Plan contributions subsequentto the measurement date 8,123 -

Total 150,012 $ 55,332 $



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The deferred outflows of resources related to the Pension Plan, totaling $7,910 and $8,123 for the years ending September 30, 2017 and 2016, respectively, resulting from Authority contributions to the Plan subsequent to the measurement date, will be recognized as a decrease in net pension liability in the fiscal year ended September 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the Pension Plan will be recognized in pension expense as follows:

Fiscal Year EndingSeptember 30: Amount

2018 6,012 $ 2019 34,848 2020 20,430 2021 (4,474) 2022 11,255

Thereafter 5,915 Total 73,986 $

Actuarial Assumptions – The total pension liability in the June 30, 2017 and 2016 actuarial valuation was determined using the following actuarial assumption, applied to all period included in the measurement:

Inflation 2.60%Salary increases 3.25%, average, including inflationInvestment rate or return 7.10% (2017) and 7.60% (2016), net of

pension plan investment including inflation

Mortality rates were based on the Generational RP-2000 with Projection Scale BB tables.

The actuarial assumptions used in the July 1, 2017 and 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008 through June 30, 2013.



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The long-term expected rate of return on Pension Plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. 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. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table:

CompoundAnnual Annual

Target Arithmetic (Geometric) StandardAsset Class Allocation (1) Return Return Deviation

Cash 1% 3.0% 3.00% 1.8%Fixed income 18% 4.5% 4.40% 4.2%Global equity 53% 7.8% 6.60% 17.0%Real estate 10% 6.6% 5.90% 12.8%Private equity 6% 11.5% 7.80% 30.0%Strategic investments 12% 6.1% 5.60% 9.7%

100%

Assumed inflation – mean 2.60% 1.90%

(1) As outlined in the Pension Plan's investment policy

Discount Rate – The discount rate used to measure the total pension liability was 7.10% in 2017 and 7.6% in 2016. The Pension 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 calculation the total pension liability is equal to the long-term expected rate of return.

The FRS Actuarial Assumption Conference is responsible for setting the assumptions used in the valuations of the defined benefit pension plans pursuant to Section 216.136(10), Florida Statutes. The 7.10% rate of return assumption used in the June 30, 2017 calculations was determined by the Plan's consulting actuary to be reasonable and appropriate per Actuarial Standard of Practice No. 27 (ASOP 27) for accounting purposes which differs from the rate used for funding purposes which is used to establish the contribution rates for the Plan.



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Sensitivity of the Authority’s Proportionate Share of the Net Position Liability to Changes in the Discount Rate – The following represents the Authority’s proportionate share of the net pension liability calculated at September 30, 2017 and 2016, using the discount rate of 7.10% and 7.60%, respectively. If the Authority’s proportionate share of the net pension liability using a discount rate that is one percentage point lower or one percentage point higher than the current rate, the effect of that is reflected in the table below:

Current1% Decrease Discount Rate 1% Increase

September 30, 2017 (6.10%) (7.10%) (8.10%)Authority’s proportionate share of the net pension liability 596,776$ 329,722$ 108,005$


September 30, 2016 (6.60%) (7.60%) (8.60%)Authority’s proportionate share of the net pension liability 602,811$ 327,425$ 98,202$

Pension Plan Fiduciary Net Position – Detailed information regarding the Pension Plan’s fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report.

HIS Plan

Plan Description – The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement.

Benefits Provided – For the fiscal years ended September 30, 2017 and 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these benefits, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare.

Contributions – The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal years ended September 30, 2017 and 2016, the HIS contribution for the period October 1, 2015 through June 30, 2016, and from October 1, 2016 through September 30, 2017, was 1.65% and 1.61%, respectively. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled.



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The Authority’s contributions to the HIS Plan totaled $7,932 and $8,319 for the fiscal years ended September 30, 2017 and 2016, respectively.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions – At September 30, 2017 and 2016, the Authority reported a liability of $159,062 and $189,157, respectively, for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2017 and June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017 and July 1, 2016. The Authority’s proportionate share of the net pension liability was based on the Authority’s 2016-17 and 2015-16 fiscal year contributions relative to the 2016-17 and 2015-16 fiscal year contributions of all participating members. At June 30, 2017, the Authority’s proportionate share was .0015%, which was a decrease of .0001% from its proportionate share measured as of June 30, 2016. At June 30, 2016, the Authority’s proportionate share was .0016% which was a decrease of .0002% from its proportionate share measured as of June 30, 2015.

For the fiscal year ended September 30, 2017 and 2016, the Authority recognized pension expense of $12,098 and $10,417, respectively. In addition the Authority reported deferred outflows of resources and deferred in flows of resources related to pensions from the following sources:

Deferred Outflows Deferred InflowsSeptember 30, 2017 of Resources of ResourcesDifferences between expected and actual experience -$ -$

Change of assumptions 22,359 13,755

Net difference between projected and actualearnings on HIS Plan investments 88 -

Changes in proportion and differencesbetween Authority HIS Plan contributionsand proportionate share of contributions 419 28,062

Authority HIS Plan contributions subsequentto the measurement date 2,116 -

Total 24,982 $ 42,148 $



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Deferred Outflows Deferred InflowsSeptember 30, 2016 of Resources of ResourcesDifferences between expected and actual experience -$ -$


Net difference between projected and actualearnings on HIS Plan investments 96 -

Changes in proportion and differencesbetween Authority HIS Plan contributionsand proportionate share of contributions 549 19,952

Authority HIS Plan contributions subsequentto the measurement date 2,057 -

Total 30,328 $ 20,383$

The deferred outflows of resources related to the HIS Plan, totaling $2,116 and $2,057 for the years ending September 30, 2017 and 2016, respectively, resulting from Authority contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIS Plan will be recognized in pension expense as follows:

Fiscal Year EndingSeptember 30: Amount

2018 (2,502) $ 2019 (2,502) 2020 (2,502) 2021 (3,171) 2022 (2,881)

Thereafter (5,724) Total (19,282) $

Actuarial Assumptions – The total pension liability in the July 1, 2017 and 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 2.60 % Salary increases 3.25%, average, including inflation Municipal bond rate 3.58 % (2017) and 2.85% (2016)

Mortality rates were based on the Generational RP-2000 with Projection Scale BB tables.

The actuarial assumptions used in the July 1, 2017 and 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008 through June 30, 2013.



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Discount Rate - The discount rate used to measure the total pension liability was 3.58% in 2017 and 2.85% in 2016. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index.

Sensitivity of the Authority’s Proportionate Share of the Net Position Liability to Changes in the Discount Rate - The following represents the Authority’s proportionate share of the net pension liability calculated at September 30, 2017 and 2016, using the discount rate of 3.58% and 2.85%, respectively. If the Authority’s proportionate share of the net pension liability using a discount rate that is one percentage point lower or one percentage point higher than the current rate, the effect of that is reflected in the table below:


September 30, 2017 (2.58%) (3.58%) (4.58%)Authority’s proportionate share of the net pension liability 181,510 $ 159,062 $ 140,363 $


September 30, 2016 (1.85%) (2.85%) (3.85%)Authority’s proportionate share of the net pension liability 217,006 $ 189,157 $ 166,044 $

Pension Plan Fiduciary Net Position - Detailed information regarding the HIS Plan’s fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report.

L. Defined Contribution Plan

Effective January 1, 1996, the Authority adopted Resolution 96-12, pursuant to 95-338 Laws of Florida, whereby the Authority revoked its participation in the System and established the Canaveral Port Authority Defined Contribution Plan and Trust (the Plan) for employees hired after January 1, 1996.

The Plan is administered by the Authority as a Qualified Retirement Plan as defined by Section 401 (a) of the Internal Revenue Service Code. Plan provisions and contribution requirements are established and may be amended by the Board of Commissioners. The Authority contributes 10.77% of the employees’ eligible compensation to the Plan; employee contributions to the Plan are not permitted. The amount of covered payroll by the Plan for the years ended September 30, 2017 and 2016, was $10,815,647 and $9,901,799, respectively. The amount of retirement expense related to the Plan for the years ended September 30, 2017 and 2016, was $1,164,846 and $1,066,424, respectively.



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Note 3. Detail Notes (Continued) M. Other Postemployment Benefits

The Authority follows GASB Statement No. 45, Accounting and Reporting by Employers for Postemployment Benefits Other than Pensions (OPEB), for certain postemployment health care benefits provided by the Authority.

Plan description. The Authority administers a single-employer defined benefit healthcare plan (the Healthcare Plan) that provides health care benefits including medical coverage and prescription drug benefits to its employees and their eligible dependents. Pursuant to Section 112.0801 Florida Statutes, the Authority is required to provide eligible retirees (as defined in the Authority’s ordinances) the opportunity to participate in this Healthcare Plan at the same cost that is applicable to active employees.

Employees who are active participants in the Healthcare Plan at the time of retirement and are either age 62 with completion of six years of service or have 30 years of service are eligible to receive benefits. The Healthcare Plan has 17 retirees and spouses receiving benefits and has a total of 190 active participants and dependents. Of that total, 173 are not yet eligible to receive benefits.

Benefit provisions can only be amended by the Board of Commissioners of the Authority. The Board approves the Authority’s annual budget and, therefore, indirectly approves the annual costs associated with the Healthcare Plan. The Authority has not established a trust or agency fund for the Healthcare Plan. The Authority does not issue standalone financial statements for the Healthcare Plan. All financial information related to the Healthcare Plan is accounted for in the Authority’s basic financial statements.

Funding policy. The Authority is funding the Healthcare Plan on a pay-as-you-go basis. The annual premium costs are between $9,660 and $22,869 for retirees and spouses under age 65 and between $2,028 and $3,552 for retirees and spouses over age 65. Employees who retired from CPA prior to October 1, 2014, elected medical insurance plan coverage under either the employee group medical insurance plan or the Medicare-eligible medical insurance plan with the majority of cost incurred by the retiree. CPA may subsidize a portion of the premium cost based on retiree only vs. retiree/spouse/family elections and increased costs of the Medicare-eligible Point of Service (POS) and employee group insurance coverage premiums. Employees and Commissioners who retire after October 1, 2014, will be able to elect medical insurance coverage under either the employee medical insurance plan or the Medicare-eligible medical insurance plan per the guidelines set in policy outlined vesting schedule, cost share and age limitations for both employees and Commissioners.

For the years ended September 30, 2017 and 2016, the contributions made by the Authority were $38,000 and $29,000, respectively, which includes both an estimate of the implied subsidy described above and the explicit subsidy paid on behalf of eligible retirees.



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Note 3. Detail Notes (Continued) M. Other Postemployment Benefits (Continued)

Annual OPEB cost and net OPEB obligation. The Authority’s annual OPEB cost (expense) is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial accrued liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the Authority’s annual OPEB cost for the last two fiscal years, the amount actually contributed to the Healthcare Plan, and changes in the Authority’s net OPEB obligation to the Healthcare Plan:

September 30, 2016 2017

Annual required contribution 268,000 $ 288,000 $ Interest on net OPEB obligation 64,000 68,000 Adjustment to annual required contribution (189,000) (202,000)

Annual OPEB cost (expense) 143,000 154,000 Contributions made (29,000) (38,000) Interest on employer contributions (1,000) (1,000)

Increase in net OPEB obligation 113,000 115,000 Net OPEB obligation – beginning of year 1,591,000 1,704,000 Net OPEB obligation – end of year 1,704,000 $ 1,819,000 $

The Authority’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Healthcare Plan, and the net OPEB obligation for the fiscal years ending September 30, 2017, 2016 and 2015, were as follows:

Year Ending Annual OPEB Cost Percentage of Annual

OPEB Cost Contributed Net OPEB Obligation

September 30, 2017 154,000 $ 25% 1,819,000 $ September 30, 2016 143,000 21% 1,704,000 September 30, 2015 133,000 23% 1,591,000

Funded status and funding progress. Because the Authority has greater than 200 members in the prior year, the Authority is required to obtain an actuarial valuation at least every two years. The most recent actuarial valuation was performed as of March 10, 2017. The report provided a roll forward of the valuation results to September 30, 2017. Accordingly, the Authority will be required to obtain a subsequent actuarial valuation within two years of that date, normally but will have to have a new valuation for next year’s audit to comply with the new accounting standard. As of the October 1, 2015 valuation, the actuarial accrued liability for benefits for the Authority was $915,000 all of which was unfunded. The covered payroll (annual payroll of active employees covered by the Healthcare Plan) was approximately $9,345,000, and the ratio of unfunded actuarial accrued liability (UAAL) to the covered payroll was 9.8%.



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Note 3. Detail Notes (Continued) M. Other Postemployment Benefits (Continued)

Actuarial valuations for an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Actuarially determined amounts are subject to continuous revision as actual results are compared to past expectations and new estimates about the future are formulated. Although the valuation results reflect a long-term perspective and, as such, are merely an estimate of what future costs may be, deviations in any of several factors, such as future interest rates, medical cost inflation, Medicare coverage and changes in marital status, could result in actual costs being less or greater than estimated.

The schedule of funding progress presented as required supplementary information following the notes to the financial statements, will present multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Fiscal year 2009 was the first year of implementation of GASB Statement No. 45. The Authority elected to apply the statement prospectively.

Actuarial methods and assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

In the October 1, 2015 actuarial valuation, the projected unit credit cost method was used. The actuarial assumptions included a 4.0% investment rate of return (including inflation of 2.75%) and an annual healthcare cost trend rate of 8% initially, reduced by decrements to an ultimate rate of 5.5% after seven years. The actuarial methods and assumptions used 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. The UAAL is being amortized using a level-dollar payment method over a ten-year open period.



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Note 3. Detail Notes (Continued) N. Leasing and Operating Agreement Arrangements With Authority as Lessor

The Authority leases land and enters into marine terminal facilities agreements with various businesses throughout the Port Authority area. All of the leases and agreements are accounted for as operating leases and agreements. Revenue from leases and agreements was $6,914,194 for 2017 and $5,588,459 for 2016. Future lease payments to be received are as follows:

2018 7,312,366 $ 2019 6,925,928 2020 6,345,934 2021 5,981,605 2022 5,369,305 2023 to 2027 21,505,665 2028 to 2032 17,241,070 2033 to 2037 14,084,640 2038 to 2042 7,145,946 2043 to 2047 4,114,990 2048 to 2052 348,480 2053 to 2057 348,480 2058 to 2062 348,480 2063 to 2067 209,088

Total 97,281,977 $

O. Major Customers

Gross revenues from three cruise line companies totaled $18,985,721, $15,681,454 and $15,271,504 in 2017. At September 30, 2017, the outstanding trade accounts receivable balances of these three cruise line companies amounted to $1,454,369, $645,153 and $915,864.

Gross revenues from three cruise line companies totaled $17,193,579, $15,693,378 and $15,356,510 in 2016. At September 30, 2016, the outstanding trade accounts receivable balances of these three cruise line companies amounted to $1,310,452, $1,305,192 and $1,452,504.

P. Risk Management

The Authority purchases commercial insurance to cover risk of loss for general liability, property and casualty, comprehensive crime and flood and fire.

The Authority bases its need for commercial insurance on “An Analysis of Risk Exposures to Natural Hazards” prepared by the Authority’s engineering consulting firm. This analysis showed the Authority has limited exposure in the area of piers and bulkheads and therefore the costs of carrying such insurance do not outweigh the benefits. The Authority is, in essence, insuring itself in these areas. In the past three years, there have been no claims settled exceeding the Authority’s insurance coverage. As of September 30, 2017 and 2016, there were no outstanding claims.



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Note 3. Detail Notes (Continued) Q. Concentration – Collective Bargaining Unit

Substantially all of the Authority’s non-management operations, maintenance and security employees are covered by a collective bargaining agreement. The Authority’s initial agreement with the Authority 2A, transportation, technical, warehouse, industrial and service employees became effective December 12, 2000 and ran through December 31, 2002. That agreement was renewed for additional terms through December 31, 2008. Upon the termination of that agreement, the Authority entered into a new collective bargaining agreement covering substantially all public safety, parking operations, enforcement, support, maintenance, supply and safety employees. The agreement became effective January 1, 2009 and ran through December 31, 2014. The agreement was renewed effective January 2, 2015, and now runs through December 31, 2018.

R. Capital Contributions

For the years ending September 30, 2017 and 2016, the Authority recognized capital contributions of $4,854,580 and $6,634,056, respectively, composed primarily of federal and state grants used for various capital projects.

Note 4. Commitments and Contingencies A. Construction

Commitments for the repair, modification, improvements, materials and new construction of Port Authority owned property at September 30, 2017 totaled approximately $48,167,719.

B. Marine Terminal Leases

During 2008, the Authority entered into a marine terminal lease agreement with a commercial cruise line company, whereby the cruise line company will offer new passenger cruise services initiating from the Canaveral Port Authority. The agreement requires a commitment from the cruise line company through December 31, 2022. The agreement requires the Authority to complete cruise terminal improvements, including dock extension, gangway modifications and an additional parking garage. The estimated costs of such improvements were approximately $22,000,000. The improvements were completed by December 31, 2010. In return, the cruise line company guaranteed repayment to the Authority over the life of the agreement, in an amount equal to the cost of the improvements, via a fee per passenger paid to the Authority by the cruise line company. This repayment is considered as revenues from the cruise line. The Authority bills the cruise line based on passenger count until the entire cost of the improvements plus interest is recovered. During fiscal year 2017, the total amount collected for these passenger fees completed the obligation of the cruise line for this agreement. The Authority collected $2,123,732 and $4,427,721 in fees under this agreement, for fiscal years 2017 and 2016 respectively, under this agreement.

During 2014, the Authority entered into a marine terminal lease agreement with a commercial cruise line company. The agreement requires a commitment from the cruise line company through March 30, 2024. The agreement requires the Authority to construct a new cruise terminal, including building, landside, waterside, gangway and parking garage. The estimated cost of the new construction including related relocation of existing infrastructure was $111 million. The new construction was completed and the facility received its first cruise passenger ship in December 2014. The cruise line company guaranteed repayment of the cost of the cruise terminal building, an agreed $48.5 million, plus the debt service interest. This repayment is considered as revenues from the cruise line. The cruise line’s guarantee to the Authority is based on a certain number of ships calling at the Authority’s terminals annually. The repayment is to be spread over the life of the agreement which is ten years. The repayment agreement went into effect April 1, 2015. During fiscal years 2017 and 2016, the Authority collected $7,105,830 and $5,873,676, respectively, in fees under this agreement.



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B. Marine Terminal Leases (Continued)

Revenue from these cruise contracts is reported in the statement of revenues, expenses and changes in net position under Operating revenues.

C. Litigation

The Authority is named as a defendant in various other lawsuits. The outcome of the lawsuits is not determinable at this time. It is the opinion of management and of the Authority’s legal counsel that the resolution of these matters will not have a material adverse effect on the financial condition of the Authority.

D. Employment Agreement

On January 20, 2016, the Port entered into a three year, with successive one year options for extension by the Board, agreement with a new CEO commencing February 15, 2016. The agreement between the Board of Commissioners of the Authority (the “Board”) and the Chief Executive Officer (CEO) provides for termination benefits. If the Board terminates its agreement with the CEO without cause, the Board shall continue to pay his then current base salary and supplemental deferred income benefits for a period of twenty weeks from the date of termination as an agreed upon severance payment and pay for employee and family coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 for a period of six months. In the event the CEO terminates his employment agreement or the Board terminates its agreement with the CEO for cause, the Board shall have no further obligation to the CEO other than for base salary and benefits accrued and/or earned to the date of termination.

E. Grants Programs

The Authority participates in Federal and state assisted grant programs that are subject to review and audit by the grantor agencies. Entitlement to these resources is general conditional upon compliance with the terms and conditions of the grant agreements and applicable federal and state regulations. Any disallowance resulting from a regulatory audit may become a liability to the Authority. Assessments from such audits, if any, are recorded when the amounts of such assessments become reasonably determinable.

Note 5. Security Contract In September 2014, the Canaveral Port Authority executed an agreement with the Brevard County Sheriff’s Department to provide seaport security and law enforcement services on behalf of the Canaveral Port Authority. The three year agreement commenced on October 1, 2014 and requires the Sheriff to provide services in compliance with the Standing Port Security Plan and encompasses duties and functions under the jurisdiction of and customarily rendered by the Sheriff pursuant to Florida Statutes. The agreement included provisions that both parties will agree on the contract amount every 12 months. The Sheriff’s department is responsible for security at each cruise terminal, parking lots and garages, debarkation and embarkation processing, assistance to the U.S. Customs and Border Protection agency and concealed weapons enforcement. Also included in the agreement are marine services including waterside security sweeps, vessel escort and zone enforcement as well as special event staffing.

For fiscal year 2017, the Authority agreed to a contract amount of $5,688,000 and will be paid in twelve equal monthly installments beginning on October 1, 2016.



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Note 6. Future Accounting Pronouncements The Government Accounting Standards Board has issued statements that will become effective in 2017. The statements address:

• GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits OtherThan Pensions in June 2015. This statement is effective for fiscal years beginning after June 15,2017.

The implementation of GASB No. 75 will require the Authority to record net OPEB liability wherewe currently record the net OPEB obligation. Management does not believe that this change inaccounting principle will result in a significant change to the Authority’s financial position.

• GASB Statement No. 87, Leases was issued in June 2017 and will be effective for the Authorityin fiscal year 2021. This Statement increases the usefulness of governments’ financial statementsby requiring recognition of certain lease assets and liabilities that previously were classified asinflows of resources or outflows of resources based upon payment provisions of the contract. Itestablishes a single model for lease accounting based on the foundational principle that leasesare financings of the right to use an underlying asset. The Statement also includes an exceptionfor short-term leases, and exceptions for contracts that transfer ownership, leases of assets thatare investments, and certain regulated leases. Management has not yet determined the impact ofGASB Statement No. 87 on the Authority’s financial statements.

Note 7 Subsequent Events On October 25, 2017, the Authority’s Board of Commissioners approved the selection of an Engineering and Architectural firm for the engineering, design, permitting and bidding services for a new cruise terminal, parking garage and site work at the location of old Cruise Terminal 3. The firm has a budget of an amount not to exceed $5.194 million. The Commission also approved a Reimbursing Resolution for the same project to allow for future funding and reimbursement for expenditures for the project.

On December 6, 2017, the Authority’s Board of Commissioners approved a Joint Participation Agreement with the State of Florida Department of Transportation for $5.58 million. This grant is reimbursable 50/50 cost share for the construction of North Cargo Berth 8. The project has an estimated cost of $17.5 million.

On January 24, 2018, the Authority’s Board of Commissioners approved Amendment 5 to the existing Line of Credit agreement with PNC, which extended the renewal date to December 15, 2018. The line of credit currently has a limit of $25 million, with a balance of $0.

On February 7, 2018, the Authority’s Board of Commissioners approved a grant agreement with the State of Florida, Department of Economic Opportunity for $8.245 million. This grant is reimbursable with a 75/25 cost share for the project. The estimated cost of the project is $12 million for Northside Road access to cruise and cargo terminals, signalization at the northside and Portwide Wayfinding and signage.

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REQUIRED SUPPLEMENTARY INFORMATION

- 44 -


Schedule of Proportionate Share of Net Pension LiabilityFlorida Retirement System (FRS)Last Ten Fiscal Years

2017 2016 2015 2014

Authority’s proportion of the net pension liability 0.001114703% 0.001296727% 0.001614396% 0.001750831%

Authority’s proportionate share of the net pension liability 329,722$ 327,425$ 208,521$ 106,826$

Authority’s covered-employee payroll 474,167$ 501,039$ 551,404$ 559,971$

Authority’s proportionate share of the net pension liability asa percentage of its covered-employee payroll 69.54% 65.35% 37.82% 19.08%

Plan fiduciary net position as a percentage of the total 83.89% 84.88% 92.00% 96.09%pension liability (Note 2)

2017 2016 2015 2014

Authority’s proportion of the net pension liability 0.00148761% 0.00162302% 0.00180818% 0.00188468%

Authority’s proportionate share of the net pension liability 159,062$ 189,157$ 184,406$ 176,222$

Authority’s covered-employee payroll 474,167$ 501,039$ 551,404$ 559,971$

Authority’s proportionate share of the net pension liability asa percentage of its covered-employee payroll 33.55% 37.75% 33.44% 31.47%

Plan fiduciary net position as a percentage of the total pension liability (Note 2) 1.64% 0.97% 0.50% 0.99%

Note 1: GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled, the Authority is presenting information for only those years for which information is available.

Note 2: The Plan's fiduciary net position as a percentage of the total pension liability is published in Note 3K of the Plan's Comprehensive Annual Financial Report.

* The amounts presented for each fiscal year were determined as of 6/30.

Florida Retirement System (FRS)*

Health Insurance Subsidy (HIS)*

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Schedule of ContributionsTen Years

2017 2016 2015 2014

Contractually required contribution 29,082 $ 31,623 $ 39,360 $ 38,351 $

Contributions in relation to the contractually required contribution (29,082) (31,623) (39,360) (38,351)

Contribution deficiency (excess) -$ -$ -$ -$

Authority's covered-employee payroll 477,841$ 517,920$ 527,368$ 567,320$

Contributions as a percentage of covered-employee payroll 6.09% 6.11% 7.46% 6.76%

2017 2016 2015 2014

Contractually required contribution 7,932 $ 8,319 $ 4,468 $ 9,111 $

Contributions in relation to the contractually required contribution

(7,932) (8,319) (4,468) (9,111) Contribution deficiency (excess) -$ -$ -$ -$

Authority's covered-employee payroll 477,841$ 517,920$ 527,368$ 567,320$

Contributions as a percentage of covered-employee payroll 1.66% 1.61% 0.85% 1.61%

Note 1: GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled, the Authority is presenting information for only those years for which information is available.

Florida Retirement System (FRS)*

Health Insurance Subsidy (HIS)*

* Payroll as of the valuation measurement date 9/30.

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Schedule of Funding Progress of Other Postemployment BenefitsMost Recent Actuarial Valuation

UAAL asActuarial Unfunded a % of

Actuarial Actuarial Accrued AAL Funded Covered Valuation Value of Liability (UAAL) Ratio Covered Payroll

Date Assets (a) AAL (b) (b-a) (a/b) Payroll (c) ((b-a)/c)

10/01/15 - 915,000$ 915,000$ 0% 9,345,000$ 9.8%12/01/13 - 1,762,000 1,762,000 0% 8,731,000 20.2%07/01/11 - 1,692,000 1,692,000 0% 6,696,000 25.3%

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SUPPLEMENTARY INFORMATION

- 48 -


- 49 -


Schedule of Revenues, Expenses and Income Before Capital Contributions Compared With Budget

#REF!

Year Ended September 30, 2017 Budget Actual

VariancePositive

(Negative)Operating revenues

Dockage 7,238,900 $ 7,837,207 $ 598,307 $ Wharfage 54,723,100 54,157,885 (565,215) Water 1,632,200 1,459,841 (172,359) Parking 16,080,900 16,739,081 658,181 Line handling 1,319,800 1,160,118 (159,682) Terminal/crane 290,000 15,750 (274,250) Leases 6,760,700 6,914,194 153,494 Permits 60,000 64,709 4,709 Badging fees 50,000 36,859 (13,141) Commercial vehicle 729,960 1,104,587 374,627 Miscellaneous 387,300 987,466 600,166 Camping 1,786,000 1,383,394 (402,606) Recreational parking 660,000 698,411 38,411 Fire training 125,000 112,847 (12,153) Other park revenues 284,900 180,565 (104,335) Exploration Tower 461,000 417,248 (43,752) Concessions 35,000 9,357 (25,643)

Total operating revenues 92,624,760 93,279,519 654,759

Non-operating revenuesInvestment earnings 127,000 445,598 318,598 Grant revenue 300,200 288,411 (11,789) Gain on sale/disposal of assets - 3,629,087 3,629,087 Gain on legal settlement - 369,850 369,850

Total non-operating revenues 427,200 4,732,946 4,305,746 Total revenues 93,051,960 98,012,465 4,960,505

Operating expensesOperations

Salaries 2,969,330 2,865,888 103,442 Benefits 1,715,760 1,680,365 35,395 Service contracts 623,800 546,934 76,866 Utilities 18,000 59,580 (41,580) Maintenance and supplies 196,400 182,216 14,184 Fender maintenance - 18,630 (18,630) Office 84,200 62,138 22,062 Fuel 75,800 88,016 (12,216) Promotions 1,710,000 1,394,194 315,806 Travel 23,200 21,144 2,056 Education and seminars 5,700 1,750 3,950 Other 30,200 22,792 7,408

Total operations 7,452,390 6,943,647 508,743

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Schedule of Revenues, Expenses and Income Before Capital Contributions Compared With Budget (Continued)


VariancePositive

(Negative)Facilities

Salaries 2,580,930 2,459,606 121,324 Benefits 1,518,670 1,464,822 53,848 Service contracts 2,142,050 2,078,573 63,477 Utilities 3,257,150 3,659,201 (402,051) Maintenance and supplies 956,400 808,414 147,986 Office 23,900 26,291 (2,391) Fuel 89,100 86,804 2,296 Travel 9,200 1,574 7,626 Education and seminars 4,500 4,042 458 Other 17,500 14,417 3,083

Total facilities 10,599,400 10,603,744 (4,344) Public safety

Salaries 344,720 345,309 (589) Benefits 113,210 112,597 613 Service contracts 10,000 2,220 7,780 Fire protection 2,195,365 2,199,799 (4,434) Police protection 5,685,500 5,965,973 (280,473) Security badging 4,500 3,360 1,140 Maintenance and supplies 20,000 13,683 6,317 Office 43,535 15,738 27,797 Communications services 8,000 6,216 1,784 Security 5,000 - 5,000 Travel 3,000 4,533 (1,533) Education and seminars 3,000 3,169 (169) Other 3,100 3,495 (395)

Total public safety 8,438,930 8,676,092 (237,162) Parks and recreation

Salaries 507,900 484,981 22,919 Benefits 381,100 370,389 10,711 Service contracts 253,750 229,434 24,316 Store merchandise 52,000 75,733 (23,733) Utilities 262,700 243,584 19,116 Maintenance and supplies 13,800 14,510 (710) Office 19,600 24,147 (4,547) Travel 400 378 22 Education and seminars 400 1,211 (811) Other 17,100 12,614 4,486

Total parks and recreation 1,508,750 1,456,981 51,769 Exploration tower

Salaries 291,760 285,170 6,590 Benefits 202,450 192,561 9,889 Service contracts 19,800 23,808 (4,008) Store merchandise 60,500 24,440 36,060

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VariancePositive

(Negative)

Utilities 83,100 46,817 36,283 Exhibit and special events 42,200 23,438 18,762 Merchandise and supplies 10,200 11,574 (1,374) Office 4,700 5,582 (882) Promotions 4,200 585 3,615 Advertising 14,000 16,124 (2,124) Travel 1,600 701 899 Education and seminars 300 288 12 Other 1,100 658 442

Total exploration tower 735,910 631,746 104,164

Fire training facilityService contracts 72,300 90,326 (18,026) Utilities 31,900 24,807 7,093 Insurance 42,250 42,468 (218) Maintenance and supplies 83,250 32,564 50,686 Office 500 - 500 Accounting 1,000 - 1,000

Total fire training facility 231,200 190,165 41,035 Commission

Salaries 115,500 113,018 2,482 Benefits 105,660 102,631 3,029 Legal 80,000 55,847 24,153 Office 28,950 8,580 20,370 Promotions 32,500 26,900 5,600 Advertising 1,200 557 643 Travel staff 2,200 2,080 120 Travel commissioners 40,000 16,442 23,558 Education and seminars 1,200 1,252 (52)

Total commission 407,210 327,307 79,903 Executive

Salaries 976,500 1,003,429 (26,929) Benefits 335,620 309,379 26,241 Legal 260,000 134,277 125,723 Office 204,000 198,634 5,366 Planning and studies 77,500 68,349 9,151 Fraud hotline 2,000 2,339 (339) Sponsorship - 20,000 (20,000) Travel 37,500 35,069 2,431 State legislative consultant 125,000 105,000 20,000 Federal legislative consultant 96,000 92,000 4,000 Education/seminars 10,000 5,226 4,774

Total executive 2,124,120 1,973,702 150,418

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VariancePositive

(Negative)Finance and accounting

Salaries 857,200 856,557 643 Benefits 397,240 391,511 5,729 Service contracts 24,000 517 23,483 Office 57,450 82,922 (25,472) Computer support & training 141,000 216,189 (75,189) Advertising 6,500 7,444 (944) Travel 6,500 4,490 2,010 Education and seminars 8,750 1,788 6,962 Accounting 106,000 93,377 12,623

Total finance and accounting 1,604,640 1,654,795 (50,155) Administrative services

Salaries 1,323,320 1,287,872 35,448 Benefits 625,860 596,528 29,332 Service contracts 61,200 63,517 (2,317) Utilities - 230 (230) Legal 30,000 27,142 2,858 Insurance 2,500,000 2,535,975 (35,975) Office 118,100 95,098 23,002 Personnel training and recruiting 173,000 156,098 16,902 Computer support and training 1,025,150 1,076,282 (51,132) Advertising 4,000 1,871 2,129 Travel 21,650 7,603 14,047 Education and seminars 28,400 5,566 22,834

Total administrative services 5,910,680 5,853,782 56,898 Engineering and environmental

Salaries 848,980 849,096 (116) Benefits 387,530 391,406 (3,876) Office 65,300 28,093 37,207 Advertising 4,800 1,392 3,408 Travel 23,600 12,151 11,449 Education and seminars 20,200 5,659 14,541 Engineering – general 318,000 4,028,254 (3,710,254) Engineering – environment 579,000 316,809 262,191

Total engineering and environmental 2,247,410 5,632,860 (3,385,450) Business development

Salaries 548,490 452,974 95,516 Benefits 193,640 158,523 35,117 Office 76,950 61,790 15,160 Promotions 700 810 (110) Advertising 346,500 254,914 91,586 Trade development 357,100 186,819 170,281 Travel 166,500 58,070 108,430 Education and seminars 2,500 613 1,887

Total business development 1,692,380 1,174,513 517,867

- 53 -




VariancePositive

(Negative)Tenant development

Salaries 222,900 213,416 9,484 Benefits 79,630 71,558 8,072 Office 17,800 11,329 6,471 Land use planning 30,000 66,030 (36,030) Lease preparation 456,000 255,452 200,548 Promotions 2,000 162 1,838 Advertising 15,000 12,018 2,982 Travel 7,000 76 6,924 Education and seminars 7,000 205 6,795

Total tenant development 837,330 630,246 207,084 Communications

Salaries 313,980 266,858 47,122 Benefits 121,180 99,792 21,388 Office 7,400 5,267 2,133 Promotions 136,800 72,075 64,725 Publications 153,500 79,513 73,987 Electronic media 114,000 57,660 56,340 Advertising 70,000 38,828 31,172 Sponsorship 200,000 40,150 159,850 Travel 8,000 2,803 5,197 Education and seminars 5,500 3,549 1,951

Total communications 1,130,360 666,495 463,865

Depreciation 36,200,000 38,515,405 (2,315,405) Amortization 358,100 365,005 (6,905)

Total operating expenses 81,478,810 85,296,485 (3,817,675) Non-operating expenses

Amortization of bond discounts 175,130 175,129 1 Commissions and fees 876,000 878,113 (2,113) Interest expense 8,201,020 8,725,519 (524,499) Loss on disposal of capital assets - 78,981 (78,981) Grant administration fee 45,000 45,000 -

Total non-operating expense 9,297,150 9,902,742 (605,592) Total expenses 90,775,960 95,199,227 (4,423,267) Income before capital contributions and

special item 2,276,000 $ 2,813,238 $ 537,238 $

- 54 -


- 55 -


Schedule of Comparative Revenues, Expenses and Changes in Net Position

Years Ended September 30, 2017 2016 2015 2014 2013

Operating revenuesDockage 7,837,207 $ 7,106,444 $ 6,571,994 $ 6,613,071 $ 7,518,459 $ Wharfage 54,157,885 50,601,459 44,584,996 40,006,862 35,933,607 Water 1,459,841 1,365,761 1,268,708 1,280,968 1,625,124 Parking 16,739,081 14,967,052 14,666,522 13,684,515 12,337,901 Line handling 1,160,118 1,048,527 1,037,664 1,124,910 1,272,129 Terminal/crane 15,750 - - - - Leases 6,914,194 5,588,459 5,069,270 4,951,406 5,744,753 Permits 64,709 63,236 85,526 85,031 90,567 Badging fees 36,859 48,777 102,573 61,923 40,185 Commercial vehicle 1,104,587 633,874 654,018 813,757 898,947 Miscellaneous 987,466 824,894 554,619 519,910 605,018 Camping 1,383,394 1,530,277 1,444,462 1,298,392 1,189,898 Recreational parking 698,411 762,217 744,002 688,713 601,686 Fire training 112,847 110,403 175,657 159,150 153,512 Other park revenues 180,565 322,005 264,090 226,463 168,536 Exploration Tower 417,248 494,102 433,417 363,188 - Concessions 9,357 10,726 47,685 50,326 43,640

Total operating revenues 93,279,519 85,478,213 77,705,203 71,928,585 68,223,962

Non-operating revenuesInvestment earnings 445,598 164,880 193,291 66,985 226,349 Grant revenue 288,411 156,592 73,179 180,716 1,044,042 Gain on sale/ disposal of assets 3,629,087 829,866 107,814 126,384 48,184 Gain on legal settlement 369,850 - - - -

Total revenues 98,012,465 $ 86,629,551 $ 78,079,487 $ 72,302,670 $ 69,542,537 $

Operating expensesOperations

Salaries 2,865,888 $ 2,089,601 $ 2,196,696 $ 2,028,852 $ 1,678,861 $ Benefits 1,680,365 1,070,478 995,430 816,967 567,365 Service contracts 546,934 1,290,477 1,121,111 15,820 7,076 Utilities 59,580 39,865 3,451 4,321 19,303 Maintenance and supplies 182,216 132,168 96,789 11,771 8,634 Fender maintenance 18,630 - - - - Office 62,138 - - - - Fuel 88,016 - - - - Promotions 1,394,194 1,548,017 - - - Travel 21,144 14,176 15,761 15,649 4,912 Education and seminars 1,750 - - - - Cruise terminal maintenance - 323,251 343,243 35,092 28,920 Other 22,792 142,595 829,450 51,290 46,842

Total operations 6,943,647 6,650,628 5,601,931 2,979,762 2,361,913

FacilitiesSalaries 2,459,606 2,318,349 2,164,630 1,629,547 1,452,868 Benefits 1,464,822 1,435,644 1,228,881 1,011,337 947,557 Service contracts 2,078,573 1,126,621 685,126 2,270,884 1,412,394 Utilities 3,659,201 3,219,918 3,380,330 3,340,318 3,104,911 Maintenance and support 808,414 702,277 842,568 1,090,543 1,190,346 Office 26,291 - - - -

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Schedule of Comparative Revenues, Expenses and Changes in Net Position (Continued)

Years Ended September 30, 2017 2016 2015 2014 2013

Fuel 86,804 70,643 150,971 271,558 252,807 Travel 1,574 792 1,551 732 37 Education and seminars 4,042 - - - - Other 14,417 31,922 47,541 10,742 16,541

Total facilities 10,603,744 8,906,166 8,501,598 9,625,661 8,377,461

Public SafetySalaries 345,309 266,993 411,472 3,106,616 3,332,249 Benefits 112,597 97,716 206,901 1,465,149 1,637,826 Service contracts 2,220 - - - - Fire protection 2,199,799 2,156,817 2,017,754 1,791,183 1,671,179 Police services 5,965,973 5,306,799 4,861,060 173,000 - Security badging 3,360 3,208 4,368 3,221 3,410 Maintenance and supplies 13,683 6,117 6,418 93,746 151,442 Office 15,738 - - - - Communications services 6,216 1,194 5,059 8,023 15,794 Harbor patrol - - 712 5,004 3,218 Security - - - 6,435 - Travel 4,533 1,654 155 3,821 7,077 Education and seminars 3,169 - - - - Training - - 132 12,316 16,621 Other 3,495 26,713 29,532 59,693 108,674

Total public safety 8,676,092 7,867,211 7,543,563 6,728,207 6,947,490

Parks and recreationSalaries 484,981 468,562 509,054 467,572 350,563 Benefits 370,389 331,203 314,035 264,247 157,743 Service contracts 229,434 198,808 193,824 190,019 173,589 Store merchandise 75,733 102,451 86,019 90,106 38,216 Utilities 243,584 272,422 294,622 269,443 214,732 Maintenance and supplies 14,510 16,510 12,995 43,263 34,974 Office 24,147 - - - - Travel 378 - - - - Education and seminars 1,211 - - - - Other park expense 12,614 85,970 68,631 66,374 74,576

Total parks and recreation 1,456,981 1,475,926 1,479,180 1,391,024 1,044,393

Exploration towerSalaries 285,170 315,681 276,018 216,319 - Benefits 192,561 216,665 158,467 115,614 - Service contracts 23,808 11,976 - 67,407 - Store merchandise 24,440 77,339 71,034 51,601 - Utilities 46,817 79,781 100,623 54,488 - Exhibit and special events 23,438 14,912 32,804 9,035 - Maintenance and supplies 11,574 7,437 13,112 130,657 - Office expense 5,582 1,882 285 - - Promotions 585 3,989 - - - Advertising 16,124 56,523 82,827 96,909 - Cove marketplace - - - 4,040 - Travel 701 1,542 2,394 371 - Education and seminars 288 - - - - Other expenses 658 1,270 7,654 3,518 -

Total exploration tower 631,746 788,997 745,218 749,959 -

- 57 -



Years Ended September 30, 2017 2016 2015 2014 2013Fire training facility

Service contracts 90,326 79,729 81,447 70,370 63,189 Utilities 24,807 16,187 31,960 48,179 35,122 Insurance 42,468 40,941 42,493 40,842 37,450 Maintenance and supplies 32,564 43,107 40,291 29,404 41,106 Other - - 470 470 -

Total fire training facility 190,165 179,964 196,661 189,265 176,867

CommissionSalaries 113,018 107,544 104,772 99,910 74,035 Benefits 102,631 96,801 87,843 89,386 91,691 Legal 55,847 92,310 57,575 26,884 - Office 8,580 140,156 3,736 3,564 3,923 Planning and studies - - - - 45,818 Promotions 26,900 1,000 16,300 2,107 - Advertising 557 - - - - Travel 18,522 19,411 40,619 17,908 28,368 Education and seminars 1,252 995 - - -

Total commission 327,307 458,217 310,845 239,759 243,835

ExecutiveSalaries 1,003,429 1,063,817 712,204 511,540 527,067 Benefits 309,379 341,168 248,335 194,898 242,214 Legal 134,277 40,264 183,466 435,910 449,026 Office 198,634 198,439 198,336 211,705 174,344 Planning and studies 68,349 69,494 13,386 57,038 162,538 Fraud hotline 2,339 2,053 2,000 2,333 1,667 Sponsorship 20,000 - - - - Travel 35,069 21,024 36,694 39,250 30,143 State legislative consultant 105,000 63,750 55,389 50,000 51,021 Federal legislative consultant 92,000 96,000 96,647 96,000 96,000 Education and seminars 5,226 10,839 8,573 4,172 1,890 Joint marketing initiative - - - 8,750

Total executive 1,973,702 1,906,848 1,555,030 1,602,846 1,744,660

Finance and accountingSalaries 856,557 775,917 754,934 704,048 564,278 Benefits 391,511 329,262 303,366 274,541 232,183 Service contracts 517 - - - - Office 82,922 60,012 76,375 60,627 51,458 Computer support and training 216,189 228,931 253,782 220,025 189,098 Advertising 7,444 - - - - Travel 4,490 6,202 4,363 5,171 951 Education and seminars 1,788 5,385 182 6,768 1,534 Accounting 93,377 150,660 137,152 128,510 131,740

Total finance andaccounting 1,654,795 1,556,369 1,530,154 1,399,690 1,171,242

- 58 -



Years Ended September 30, 2017 2016 2015 2014 2013Administrative services

Salaries 1,287,872 1,085,961 1,013,275 1,026,658 535,795 Benefits 596,528 511,038 425,124 384,693 252,147 Service contracts 63,517 - - - - Utilities 230 - - - - Legal 27,142 28,932 48,201 78,843 - Insurance 2,535,975 2,013,410 2,439,592 2,784,698 2,672,787 Office 95,098 122,505 160,379 162,009 89,276 Personnel training and recruiting 156,098 123,733 29,028 39,681 99,366 Computer support and training 1,076,282 551,299 450,676 235,685 159,048 Advertising 1,871 - - - - Travel 7,603 5,133 7,111 10,483 2,748 Education and seminars 5,566 3,710 5,480 4,007 5,167

Total administrativeservices 5,853,782 4,445,721 4,578,866 4,726,757 3,816,334

Engineering and environmentalSalaries 849,096 822,085 809,214 843,350 623,465 Benefits 391,406 366,458 309,183 301,126 244,867 Office 28,093 25,248 62,635 38,189 70,298 Advertising 1,392 - - - - Travel 12,151 12,078 11,445 4,724 4,160 Education and seminars 5,659 12,631 10,391 4,731 5,603 Engineering – general 4,028,254 425,090 349,384 386,865 183,191 Engineering – planning - - - 16,498 49,500 Engineering – environment 316,809 272,143 417,682 405,835 403,946

Total engineering and environmental 5,632,860 1,935,733 1,969,934 2,001,318 1,585,030

Business developmentSalaries 452,974 519,532 473,610 542,727 276,540 Benefits 158,523 181,574 156,915 194,798 110,391 Office 61,790 - - - - Promotions 810 - - - - Advertising 254,914 250,424 285,287 248,518 357,105 Trade development 186,819 476,350 501,474 235,457 249,750 FTZ development - 5,687 4,314 6,776 15,518 Travel 58,070 86,233 95,677 94,776 50,605 Education and seminars 613 - - - -

Total business development 1,174,513 1,519,800 1,517,277 1,323,052 1,059,909

Tenant developmentSalaries 213,416 207,126 143,239 71,165 65,557 Benefits 71,558 71,409 38,949 17,991 18,259 Office 11,329 11,295 2,934 1,197 2,061 Land use planning 66,030 201,668 20,445 104,078 28,100 Lease preparation 255,452 585,441 310,896 193,405 180,095 Promotions 162 - - - - Advertising 12,018 30,431 - - - Travel 76 4,190 2,925 - - Education and seminars 205 - - - -

Total tenant development 630,246 1,111,560 519,388 387,836 294,072

- 59 -



Years Ended September 30, 2017 2016 2015 2014 2013Communications

Salaries 266,858 231,186 227,591 183,290 155,153 Benefits 99,792 108,206 91,005 80,022 57,743 Office 5,267 6,739 4,822 13,419 8,146 Promotions 72,075 87,699 84,089 1,202,581 178,288 Publications 79,513 147,100 145,672 175,631 188,527 Electronic media 57,660 59,409 86,522 128,758 97,956 Advertising 38,828 48,093 64,977 78,043 145,126 Sponsorship 40,150 - - - - Travel 2,803 7,294 6,003 3,985 7,542 Cove marketplace - - - - 4,813 Education and seminars 3,549 - - - -

Total communications 666,495 695,726 710,681 1,865,729 843,294

Depreciation 38,515,405 34,555,085 31,506,831 24,666,694 21,932,610 Amortization 365,005 1,274,811 1,718,755 1,513,820 1,190,100

Total operating expenses 85,296,485 75,328,762 69,985,912 61,391,379 52,789,210

Non-operating expensesAmortization of bond discounts 175,129 226,421 182,870 167,489 237,015 Commissions and fees 878,113 295,368 100,474 432,562 - Interest expense 8,725,519 6,976,059 5,639,606 3,707,926 3,980,652 Loss on disposal of capital assets 78,981 626,509 60,692 2,723,558 - State grant expense - 40,000 - - - Federal grant expense - - - 50,500 53,474 Grant administration fee 45,000 - 36,866 69,534 48,300

Total non-operating expense 9,902,742 8,164,357 6,020,508 7,151,569 4,319,441

Total expenses 95,199,227 $ 83,493,119 $ 76,006,420 $ 68,542,948 $ 57,108,651 $

Total operating revenues 93,279,519 $ 85,478,213 $ 77,705,203 $ 71,928,585 $ 68,223,962 $ Total operating expenses 85,296,485 75,328,762 69,985,912 61,391,379 52,789,210

Net operating income 7,983,034 $ 10,149,451 $ 7,719,291 $ 10,537,206 $ 15,434,752 $

Total non-operating revenues 4,732,946 $ 1,151,338 $ 374,284 $ 374,085 $ 1,318,575 $ Total non-operating expenses 9,902,742 8,164,357 6,020,508 7,151,569 4,319,441

Net non-operating loss (5,169,796) $ (7,013,019) $ (5,646,224) $ (6,777,484) $ (3,000,866) $

Total revenues 98,012,465 $ 86,629,551 $ 78,079,487 $ 72,302,670 $ 69,542,537 $ Total expenses 95,199,227 83,493,119 76,006,420 68,542,948 57,108,651

Net income before capitalcontributions and special item 2,813,238 3,136,432 2,073,067 3,759,722 12,433,886

Special Item - - (421,690) (693,999) - Capital contributions 4,854,580 6,634,056 27,832,677 13,184,167 10,005,978

Changes in net position 7,667,818 $ 9,770,488 $ 29,484,054 $ 16,249,890 $ 22,439,864 $

- 60 -


Schedule of Comparative Operating Revenues by Activity

Years ended September 30, 2017 2016 2015 2014 2013

Cruise ships 72,799,989 $ 68,214,524 $ 63,006,688 $ 58,284,973 $ 53,135,894 $ Cargo ships 8,569,893 6,870,898 5,123,196 4,425,353 5,551,327

Total ship related operating revenue 81,369,882 75,085,422 68,129,884 62,710,326 58,687,221

Land leases 6,914,194 5,588,459 5,069,270 4,951,406 5,744,753 Park operations 2,223,627 2,625,225 2,500,239 2,263,894 2,003,759 Miscellaneous 2,771,816 2,179,107 2,005,810 2,002,959 1,788,229

Total non-ship relatedoperating revenue 11,909,637 10,392,791 9,575,319 9,218,259 9,536,741

Total operating revenue 93,279,519 $ 85,478,213 $ 77,705,203 $ 71,928,585 $ 68,223,962 $ - - #VALUE!

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Schedule of Construction in Progress and Capital Costs Compared With Budget(Prior to Transfer of Completed Projects to Capital Assets)

BudgetYear Ended September 30, 2017 Prior Years Current Year Cumulative Total Cumulative Total

Road Improvements $ 916,106 $ 252,195 1,168,301 $ $ 4,231,299 Portwide Parking Lot Improvement 640,823 584,575 1,225,398 2,445,649 Other Computer Equipment - 195,215 195,215 675,786 Park Upgrades 6,750 43,223 49,973 106,750 Improve Piers, Bldgs, Structures - 103,881 103,881 142,385 Northside Land Improvements 72,622 - 72,622 145,758 Marine Terminal Ph2-10 Acre - 181,550 181,550 1,556,086 Fire Fighting Equipment 278,577 113,469 392,046 411,218 Fire Training Equipment - 5,310 5,310 15,000 Utilities and Improvements - 12,195 12,195 128,100 Minor Equipment - 7,304 7,304 55,962 New/Replacement Vehicles - 211,155 211,155 467,746 Welcome Center 878,992 229,461 1,108,453 1,108,992 CT Furniture/Equipment - - - 50,000 Northside Cargo Backup Area 1,004,968 (1,004,968) - 1,504,968 Northside Pier Rejuvenation 301,299 64,591 365,890 733,339 North Cargo Pier 8 1,577,069 - 1,577,069 1,581,256 Financial System Upgrade 307,483 269,077 576,560 710,258 South Side Pier Rejuvenation 39,353 - 39,353 39,353 SCP4 East Extension/Widening 274,134 - 274,134 274,134 Portwide Signage 109,844 (109,844) - 864,156 Cove Roads Phase 2 2,046,085 1,657,738 3,703,823 3,771,116 Equipment - 24,171 24,171 185,088 CT 5 Terminal Upgrades 983,576 251,250 1,234,826 2,182,750 CT10 Terminal Improvements 23,691,723 10,394,768 34,086,491 34,501,996 CT10 Waterside Berth Expansion 13,799 (13,799) - 13,799 Maritime Center Tenant Improvement 32,597 3,405,325 3,437,922 4,727,964 CT# 8 Renovations 1,738,978 349,977 2,088,955 2,453,283 WTB Channel Widen/Inner Reach 3,386,695 270,559 3,657,254 4,464,041 WTB Phase 1 Widen & Deepen - - - 1,598,913 WTB Channel Entrance Phase 2 1,862,211 422,391 2,284,602 5,278,000 WTB-Cargo Area Deepening 293,223 7,184,651 7,477,874 9,612,000

Actual

(Continued)

- 62 -


Schedule of Construction in Progress and Capital Costs Compared With Budget(Prior to Transfer of Completed Projects to Capital Assets) (Continued)

BudgetYear Ended September 30, 2017 Prior Years Current Year Cumulative Total Cumulative Total

North Cargo Piers 1&2 - 177,191 177,191 765,850 Commercial Access & Billing 15,000 1,077,226 1,092,226 2,867,000 Improved Fender System 20,636 175,344 195,980 2,410,669 SR 401 Improvements 226,298 2,808,902 3,035,200 5,196,110 Tug Piers 150,174 - 150,174 1,200,293 CT#1 Cruise Terminal 6,628 1,163,987 1,170,615 2,098,073 Rail Connectivity Ph1 (State) 2,104,977 (2,104,977) - 4,700,000 Cargo Berth & Terminal Phase 2 450,477 177,772 628,249 1,814,000 Cargo Berth & Terminal Phase 3 107,837 90,742 198,579 199,000 Land Acquisitions 592,619 1,404,224 1,996,843 2,815,006 CT Rental Car Facility 67,738 - 67,738 67,738 Auto Terminal 95,390 - 95,390 794,221 EUL-USAF 424,572 - 424,572 1,125,000 SR524 ILC 345,545 (345,545) - - Port Master Plan 571,473 547,896 1,119,369 1,232,000 New Cruise Terminal - 666,186 666,186 1,750,000 Contingency New Projects/Lease - - - 2,281,788 NCP 3-A Barge Berth - 55,077 55,077 500,000 North Cargo Power Project - 47,261 47,261 200,000 Portwide Wayfinding 928 503,594 504,522 2,751,000 Fire Station Remodel - 91,647 91,647 268,385 South Intermodal Gate Rehab - 6,804 6,804 25,000 CT6 Pax Bridge/Lighting System - 28,310 28,310 80,000 Bollards at Terminals - 18,270 18,270 19,000 Mobile Harbor Crane - 21,276 21,276 100,000

45,637,199$ 31,716,607$ 77,353,806$ 121,297,278$

Actual

- 63 -


Schedule of Expenditures of Federal Awards and State Financial AssistanceFor the Fiscal Year Ended September 30, 2017

Federal Agency/ Program Title/ CFDA Contract / Pass Through Pass-through Entity Number Entity Identifying Number Expenditures

Federal Programs:

Department of Homeland SecurityDirect Programs Port Security Grant Program

FY2015 Port Security Grant 97.056 EMW-2015-PU-00183-S01 $ 280,939

Total expenditures of federal awards $ 280,939

See notes to Schedule of Expenditures of Federal Awards and State Financial Assistance.

- 64 -


Schedule of Expenditures of Federal Awards and State Financial Assistance (Ccontinued)For the Fiscal Year Ended September 30, 2017

State Agency/ Program Title/ CSFA Contract / Pass Through Pass-through Entity Number Entity Identifying Number Expenditures

State Projects:

Florida Department of TransportationDirect Programs Seaport Grants

North Cargo Development –– North Cargo Berths 1 and 2 Improvements 55.005 ARN50/422533-2-94-01 4,753 $

Widen West Turning Channel Widening

West Turning Basin Cargo Area Deepening 55.034AR956/431203-1-94-02 and

431203-2-94-01 4,805,056 Total Florida Department of Transportation 4,809,809

Florida Department of Environmental ProtectionDirect Programs

Canaveral Inlet Management Plan 37.003 15BE2 20,740

Total expenditures of state financial assistance 4,830,549

Total expenditures of federal and state financial assistance 5,111,488 $

See notes to Schedule of Expenditures of Federal Awards and State Financial Assistance.

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Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance

(1) Basis of PresentationThe accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance (theSchedules) present the activity of all federal awards and state financial assistance of the Authority for the yearended September 30, 2017. The information in the Schedules is presented in accordance with therequirements 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 Rulesof the Florida Auditor General. Because the Schedules present only a selected portion of the operations of theAuthority, they are not intended to and do not present the financial position, changes in net positions, or cashflows of the Authority. The Authority’s reporting entity is defined in Note 1 to the Authority special purposefinancial statements.

(2) Summary of Significant Accounting PoliciesThe Schedules are presented using the accrual basis of accounting for expenses, which are described inNote 1 to the Authority’s basic financial statements. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or arelimited as to reimbursement.

(3) Indirect Cost RecoveryThe Authority did not recover its indirect costs using the 10% de minims indirect cost rate provided underSection 200.414 of the Uniform Guidance.

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STATISTIC

AL SEC

TION

- 67 -

STATISTICAL SECTION

(unaudited)

- 68 -

CANAVERAL PORT AUTHORITY

Statistical Section Narrative

This section of the Authority’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and supplementary information says about the Authority’s overall financial position. This information has not been audited.

PAGE

A. FINANCIAL TRENDS 69-81

These schedules contain trend information to help the reader understand how the Authority’s financial performance and well-being has changed over time. The Authority engages in business-type activities and presents revenues by major source and distinguishes between operating and non-operating revenues and expenses.

B. REVENUE CAPACITY 82-89 These schedules contain information to help the reader assess the Authority’s most significant revenue sources: cargo and cruise revenue.

C. DEBT CAPACITY 90-92 These schedules present information that assist the reader in analyzing the affordability of the Authority’s current levels of outstanding debt and the Authority’s ability to issue additional debt in the future. Details regarding the Authority’s outstanding debt can be found in the notes to the financial statements.

D. DEMOGRAPHIC AND ECONOMIC INFORMATION 93-95 These schedules offer demographic and economic indicators that are commonly used for financial analysis and that can enhance one’s understanding of the Authority’s

present and ongoing financial status. E. OPERATING INFORMATION 96-102 These schedules contain information about the Authority’s operations and resources to help the reader understand how the Authority’s financial information relates to the services it provides and the activities it performs. Source: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the relevant year.

Schedule A-1


Net Position (in thousands)

Fiscal Years ended September 30, 2008 through 2017

Net Investment Restricted

Fiscal in Capital for Debt Unrestricted Total

Year Assets Service

2008 * 156,102$ 6,016$ 32,909$ 195,027$

2009 167,915 6,016 29,292 203,223

2010 170,233 6,016 35,116 211,365

2011 186,803 6,016 40,760 233,579

2012 232,306 4,566 22,732 259,604

2013 ** 265,049 4,566 11,534 281,149

2014 ** 245,995 4,566 46,838 297,399

2015 *** 301,897 1,825 23,161 326,883

2016 305,846 1,825 28,982 336,653

2017 301,670 5,235 37,416 344,321

* Balances have been reclassified to conform to September 30, 2009 financial presentation.

** Balances have been restated as of September 30, 2014 and 2013 due to implementing

GASB 68

***Balances have been reclassified to conform to September 30, 2016 financial presentation.

- 69 -

Schedule A-2


Operating Revenues by Source


Foreign

Fiscal Line- Trade

Year Dockage Wharfage Leases Water Parking handling Zone

2008 5,146,752$ 22,013,965$ ** 5,234,516$ 1,202,840$ 9,343,286$ 1,190,739$ 34,453$

2009 5,179,737 18,564,588 ** 4,961,324 1,198,144 9,871,355 1,141,142 29,968

2010 6,124,205 21,026,079 5,325,455 1,348,997 9,580,489 1,089,165 17,500

2011 7,798,486 27,701,101 5,315,084 1,349,609 9,962,760 1,330,848 13,500

2012 8,655,205 32,916,999 5,465,805 1,784,161 12,823,140 1,566,581 17,042

2013 7,518,459 35,933,607 5,744,753 1,625,124 12,337,901 1,272,129 10,000

2014 6,613,071 40,006,862 4,951,406 1,280,968 13,684,515 1,124,910 10,000

2015 6,571,994 44,584,996 5,069,270 1,268,708 14,666,522 1,037,664 10,750

2016 7,106,444 50,601,459 5,588,459 1,365,761 14,967,052 1,048,527 8,125

2017 7,837,207 54,157,885 6,914,194 1,459,841 16,739,081 1,160,118 7,500

* These items have been reclassified to conform to the September 30, 2009 financial statement presentation.

** These items have been reclassified to conform to the September 30, 2010 financial statement presentation.

*** These items have been reclassified to conform to the September 30, 2015 financial statement presentation.

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Schedule A-2 (cont'd)


Operating Revenues by Source


Camping and Fire

Fiscal Recreational Exploration Training Commercial

Year Parking Tower Facility Vehicle Miscellaneous Total

2008 1,309,645$ * -$ 132,865$ -$ 496,658$ * 46,105,719 **

2009 1,606,984 - 130,163 - 481,029 43,164,434 **

2010 1,539,766 - 107,505 - 861,397 47,020,558

2011 1,542,226 - 106,176 158 *** 952,544 *** 56,072,492

2012 1,535,064 - 149,514 799,538 *** 642,443 *** 66,355,492

2013 2,003,760 - 153,512 898,947 *** 725,770 *** 68,223,962

2014 2,263,894 363,188 159,150 813,757 *** 656,864 *** 71,928,585

2015 2,500,239 433,417 175,657 654,018 731,968 77,705,203

2016 2,625,225 494,102 110,403 633,874 928,782 85,478,213

2017 2,271,727 417,248 112,847 1,104,587 1,097,284 93,279,519

- 71 -

Schedule A-3


Operating Revenues by Activity


Fiscal Park

Year Cruise Ships Cargo Ships Operations

2008 34,969,584$ ** 3,948,920$ 1,309,645$ *

2009 32,037,675 ** 3,936,169 1,606,984

2010 34,488,305 4,686,092 1,539,766

2011 42,270,635 5,872,169 1,542,226

2012 52,401,125 5,344,961 1,535,064

2013 53,135,894 5,551,327 2,003,759

2014 58,284,973 4,425,353 2,263,894

2015 63,006,688 5,123,196 2,500,239

2016 68,214,524 6,870,898 2,625,225

2017 72,799,989 8,569,893 2,223,627


** These items have been reclassified to conform to the September 30, 2010 financial statement presentation.

- 72 -



Operating Revenues by Activity


Fiscal Foreign

Year Land Leases Trade Zone Other Total

2008 5,234,516$ 34,453$ 608,601$ * 46,105,719$ **

2009 4,961,324 29,968 592,314 43,164,434 **

2010 5,325,455 17,500 963,440 47,020,558

2011 5,315,084 13,500 1,058,878 56,072,492

2012 5,465,805 17,042 1,591,495 66,355,492

2013 5,744,753 10,000 1,778,229 68,223,962

2014 4,951,406 10,000 1,992,959 71,928,585

2015 5,069,270 10,750 1,995,060 77,705,203

2016 5,588,459 8,125 2,170,982 85,478,213

2017 6,914,194 7,500 2,764,316 93,279,519

- 73 -

Schedule A-4


Non-Operating Revenues


Fiscal Interest Grant

Year Earnings Revenue Other Total

2008 650,194$ * 384,047$ 38,554$ 1,072,795$ *

2009 410,363 271,809 42 682,214

2010 427,989 1,327,866 39,122 1,794,977

2011 264,570 2,146,632 205,761 2,616,963

2012 331,304 2,183,352 40,895 2,555,551

2013 226,349 1,044,042 48,184 1,318,575

2014 66,985 180,716 126,384 374,085

2015 193,291 73,179 107,814 374,284

2016 164,880 156,592 829,866 1,151,338

2017 445,598 288,411 3,998,937 ** 4,732,946


** Included in this amount is a gain on sale of an asset for $3.6M.

- 74 -

- 75 -

Schedule A-5


Total Revenue by Activity - FY2017

Cruise Ships74%

Cargo Ships9%

Land Leases7%

Other Non-Operating4%

Other Operating3%

Park Operations2%

Interest Earnings1%

$98,012,465

Schedule A-6

Ex-

Fiscal Public Parks & ploration Fire

Year Operations Facilities Safety Recreation Tower Training Commission Executive

2008 * 10,148,744$ -$ 7,221,901$ 1,177,051$ -$ 189,165$ 163,155$ *** 1,098,373$ ***

2009 ** 9,333,672 - 6,779,382 1,226,187 - 174,658 129,910 *** 1,124,743 ***

2010 8,731,013 - 7,030,095 969,248 - 164,207 138,096 *** 1,157,410 ***

2011 1,910,600 **** 7,435,823 **** 7,551,547 860,105 - 173,241 154,826 *** 1,156,616 ***

2012 2,365,377 **** 7,524,050 **** 6,497,971 891,181 - 185,959 151,705 *** 1,336,653 ***

2013 2,361,913 **** 8,377,461 **** 6,947,490 1,044,393 - 176,867 243,835 1,744,660

2014 2,979,762 **** 9,625,661 **** 6,728,207 **** 1,391,024 749,959 189,265 239,759 **** 1,602,846 ****

2015 5,601,931 8,501,598 7,543,563 1,479,180 745,218 196,661 310,845 1,555,030

2016 6,650,628 8,906,166 7,867,211 1,475,926 788,997 179,964 458,217 1,906,848

2017 6,943,647 10,603,744 8,676,092 1,456,981 631,746 190,165 327,307 1,973,702

* FY2008 expenses have been reclassified to conform to the September 30, 2009 financial statement presentation.

** FY2009 expenses have been reclassified to conform to the September 30, 2010 financial statement presentation.

*** FY2006-2012 expenses have been reclassified to conform to the September 30, 2013 financial statement presentation.

**** FY2011-2014 expenses have been reclassified to conform to the September 30, 2015 financial statement presentation.


Operating Expenses


- 76 -



Operating Expenses


Admini- Engineering Business Tenant

Fiscal Finance & strative & Environ- Develop- Develop- Comm-

Year Accounting Services mental ment ment unications Depreciation Amortization Total

2008 * 846,443$ 3,293,793$ 2,352,466$ 934,804$ 489,910$ 592,642$ 12,436,688$ 1,076,006$ 42,021,141$

2009 ** 910,855 2,942,404 1,659,732 805,548 344,705 582,543 12,733,871 1,227,743 39,975,953

2010 847,530 2,855,999 1,518,036 713,148 246,852 624,356 13,557,270 1,227,075 39,780,335

2011 **** 1,003,355 3,083,240 2,520,538 878,375 182,564 789,038 14,709,184 1,302,388 43,711,440

2012 **** 1,043,874 3,259,000 1,544,442 916,194 276,677 842,667 16,935,458 1,699,522 45,470,730

2013 **** 1,171,242 3,816,334 1,585,030 1,059,909 294,072 843,294 21,932,610 1,190,100 52,789,210

2014 **** 1,399,690 4,726,757 2,001,318 1,323,052 387,836 1,865,729 24,666,694 1,513,820 61,391,379

2015 1,530,154 4,578,866 1,969,934 1,517,277 519,388 710,681 31,506,831 1,718,755 69,985,912

2016 1,556,369 4,445,721 1,935,733 1,519,800 1,111,560 695,726 34,555,085 1,274,811 75,328,762

2017 1,654,795 5,853,782 5,632,860 1,174,513 630,246 666,495 38,515,405 365,005 85,296,485

* FY2008 expenses have been reclassified to conform to the September 30, 2009 financial statement presentation.

** FY2009 expenses have been reclassified to conform to the September 30, 2010 financial statement presentation.

*** FY2006-2012 expenses have been reclassified to conform to the September 30, 2013 financial statement presentation.

**** FY2011-2014 expenses have been reclassified to conform to the September 30, 2015 financial statement presentation.

- 77 -

Schedule A-7


Non-Operating Expenses


Loss on

Fiscal Interest & Commissions Capital Asset

Year Amortization & Fees Disposals Other Total

2008 ** 2,890,928$ 1,500$ 4,559$ 554,137$ * 3,451,124$

2009 2,742,600 1,000 21,888 181,580 2,947,068

2010 2,613,926 3,000 - 357,709 2,974,635

2011 3,196,955 2,500 - 289,048 3,488,503

2012 3,709,313 2,500 - 109,972 3,821,785

2013 4,217,667 - - 101,774 4,319,441

2014 3,875,415 432,562 2,723,558 120,034 7,151,569

2015 5,822,476 100,474 60,692 36,866 6,020,508

2016 7,202,480 295,368 626,509 40,000 8,164,357

2017 8,900,648 878,113 78,981 45,000 9,902,742

* Includes $517,137 in casualty loss from a tropical storm.

** FY2008 expenses have been reclassified to conform to the September 30, 2009 financial statement

presentation.

- 78 -

Schedule A-8

Net

Net Non-Operating Income before

Fiscal Operating Revenue or Contributions Special Capital Change in

Year Income (Expense) & Special Items Item Contributions Net Position

2008 4,084,578$ (2,378,329)$ 1,706,249$ -$ 1,279,271$ 2,985,520$

2009 3,188,481 (2,264,854) 923,627 - 7,272,236 8,195,863

2010 7,240,223 (1,179,658) 6,060,565 - 2,081,489 8,142,054

2011 12,361,052 * (871,540) 11,489,512 * - 10,724,264 22,213,776 *

2012 20,884,762 (1,266,234) 19,618,528 - 6,407,256 26,025,784

2013 15,434,752 (3,000,866) 12,433,886 - 10,005,978 22,439,864

2014 10,537,206 ** (6,777,484) 3,759,722 ** (693,999) 13,184,167 16,249,890 **

2015 7,719,291 (5,646,224) 2,073,067 (421,690) 27,832,677 29,484,054

2016 10,149,451 (7,013,019) 3,136,432 - 6,634,056 9,770,488

2017 7,983,034 (5,169,796) 2,813,238 - 4,854,580 7,667,818

* FY 2011 income has been reclassified to conform to the September 30, 2012 financial statement presentation.

** FY 2014 income has been reclassified to conform to the September 30, 2015 financial statement presentation.


Changes in Net Position


- 79 -

Depreciation/Amortization41%

Exploration Tower1%

Tenant Development1%

Communications1%

Business Development1%

Parks & Recreation2%

Finance & Accounting2%

Executive2%

Engineering &Environmental6%

Administrative Services6%

Operations7%

Public Safety9%

Non-Operating10%

Facilities11%

- 80 -

$95,199,227


Total Expenses - FY2017

Schedule A-9

- 81 -


Operating Revenues & Expenses FY1997 - FY2017

Schedule A-10

Mill

ions

of D

olla

rs

Fiscal Years

0

20

40

60

80

100

20172012200720021997

0

20000000

40000000

60000000

80000000

100000000

'2016''2011''2006''2001''1996'

0

20000000

40000000

60000000

80000000

100000000

'2016''2011''2006''2001''1996'

OPERATING REVENUES OPERATING EXPENSES

Schedule B-1

Commodity 2008 2009 2010 2011 2012

Petroleum 1,033,953$ 1,187,035$ 1,823,733$ 2,628,105$ 2,587,916$

Cement*** 64,922 20,000 60,000 40,000 40,000

Newsprint 191,926 170,013 145,061 - -

Scrap Metal - - 13,841 ** 20,671 -

Salt 357,481 369,065 388,900 421,546 417,027

Pumice - 13,823 - - -

Lumber 277,060 90,569 33,473 23,418 15,360

Concentrate 89,105 103,549 105,044 161,650 139,218

Single Strength Juice 117,601 195,985 108,655 122,630 76,018

Fresh Citrus/Produce 216,511 239,381 80,894 41,335 544

General Misc.* 609,802 305,595 798,943 1,354,181 1,253,024

Containers ** 67,646 106,883 57,361 43,174 48,389

Automobiles/Trucks 379,940 224,890 235,968 214,324 104,976

Bulk Fertilizer - - 16,034 ** 82,874 98,205

Limestone/Aggregate 268,474 582,620 388,535 314,572 256,786

Granite/Rock 105,520 243,363 211,784 224,285 119,657

Slag/Sand 168,979 83,398 217,866 179,404 187,841

Totals 3,948,920$ 3,936,169$ 4,686,092$ 5,872,169$ 5,344,961$

* Included in FY2010 $536,652, FY2011 $740,815, FY2012 $496,002, FY2013 $479,268,

FY14 $469,290 in revenue on northside and southside cargo contracts from required

minimum guarantees.

** FY2010 balances have been reclassified to appropriate commoditites out of the General

Miscellaneous category.

*** FY2009-2016 Revenue is from a contract with required shortage minimum guarantee.


Cargo Revenue


- 82 -

Schedule B-1 (cont'd)


Cargo Revenue


Commodity 2013 2014 2015 2016 2017

Petroleum 2,427,711$ 2,017,413$ 2,581,687$ 3,261,288$ 3,460,935$

Cement*** 35,000 73,153 162,868 198,832 246,483

Newsprint - 22,330 - 123,857 282,757

Scrap Metal - - 129,612 5,930 477

Salt 463,705 332,004 269,032 371,229 505,788

Pumice - - - - -

Lumber 36,934 29,759 38,958 131,123 367,015

Concentrate 138,119 108,709 108,458 102,878 39,275


Fresh Citrus/Produce 532 - - - -

General Misc.* 1,143,920 698,192 354,966 558,141 906,420

Containers ** 47,334 17,708 30,583 206,941 540,687


Bulk Fertilizer 175,307 106,130 129,218 164,544 102,870


Granite/Rock 320,386 275,022 344,450 455,887 509,905

Slag/Sand 275,360 184,741 501,450 700,496 885,651

Totals 5,551,327$ 4,425,353$ 5,123,196$ 6,870,898$ 8,569,893$

* Included in FY2010 $536,652, FY2011 $740,815, FY2012 $496,002 FY2013 $479,268

FY14 $469,290 in revenue on northside and southside cargo contracts from required

minimum guarantees.

** Fiscal years balances have been reclassified to appropriate commoditites out of the General


*** FY2009-2016 Revenue is from a contract with required shortage minimum guarantee.

- 83 -

- 84 -


Cargo Revenue FY2008 - FY2017

Schedule B-2

Fiscal Years

Mill

ions

of D

olla

rs

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000Bulk Fertilizer

Scrap Metal

Other

Granite/Aggregate

Limestone

Automobiles/Trucks

Concentrate/Juice

Slag/Sand

Fresh Citrus/Produce

Lumber

Salt

Newsprint

Cement

Petroleum

2016201520142013201220112010200920082007

0

2000000

4000000

6000000

8000000

10000000

Containers

Bulk Fertilizer

Scrap Metal

Other

Granite/Aggregate

Limestone

Automobiles/Trucks

Concentrate/Juice

Slag/Sand


Lumber

Salt

Newsprint

Cement

Petroleum

2017201620152014201320122011201020092008

0

1

2

3

4

5

6

7

9

8

2016 201720152014201320122011201020092008


Automobiles/Trucks

Limestone/Aggregate

Slag/Sand

Salt

Cement

Newsprint

Petroleum

Containers

Concentrate/Juice

Lumber

Granite/Rock

update this chart above with new data and then braek apart just the bar graphs and overlay on to chart on page.... apply bevel already set up as graphic style... expand to fill width...slant 179 to straigthen bars after extruded .... watch for RED color and replace as needed.

Other*

Scrap Metal

Bulk Fertilizer

Lorem ipsum

*Fiscal years balances have been reclassified to appropriate commodities out of the Other category.

- 85 -

$8,569,893


Cargo Revenue - FY2017

Schedule B-3

Petroleum 40%Bulk Fertilizer 1%Concentrate/Juice 1%Newsprint 3%Cement 3%Lumber4%Automobiles/Trucks4%Limestone/Aggregate 5%Salt 6%Granite/Rock 6%Containers6%Slag/Sand 10%Other 11%

Schedule B-4


Revenue Passengers


Fiscal Greater Than

Year One Day Cruises One Day Cruises Total

2008 1,089,456 2,484,504 3,573,960

2009 782,336 2,468,439 3,250,775

2010 80,200 2,722,751 2,802,951

2011 44,469 3,100,199 3,144,668

2012 243,227 3,761,056 4,004,283

2013 269,408 3,717,586 3,986,994

2014 303,652 3,863,606 4,167,258

2015 308,441 3,860,225 4,168,666

2016 297,169 3,951,127 4,248,296

2017 285,684 4,240,942 4,526,626

- 86 -

- 87 -


Revenue Passengers FY2008 - FY2017

Schedule B-5

Thou

sand

s of

Rev

enue

Pas

seng

ers

One Day Cruises Longer Cruises

Fiscal Years

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

'2016''2015''2014''2013''2012''2011''2010''2009''2008''2007'

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2017201620152014201320122011201020092008

Schedule B-6

FY 2008 FY 2008 Percentage of

Customer Revenue Rank Total Revenue

Quay Cruise Lines 10,520,963$ * 1 22.2%

Carnival Cruise Lines 10,294,542 * 2 21.7%

Magical Cruise Lines 5,869,816 * 3 12.4%

Sterling Cruise Lines 4,199,264 4 8.8%

Ambassador Services, Inc & LLC 3,436,576 5 7.2%

Florida Transportation 1,567,190 6 3.3%

Oceans Casino Cruises 1,053,369 7 2.2%

Coastal Fuels Marketing & Refining 1,008,402 8 2.1%

Fillette Green & Company 659,623 9 1.4%

Las Vegas Casino Lines 547,321 10 1.2%

Totals 39,157,066$ 82.5%

* These amounts differ from those in the notes to the financial statements due to the

inclusion of parking lot revenue.

This report is generated by the Finance Department.


Ten Largest Revenue Generating Customers

Fiscal Years ended September 30, 2008 and 2017

- 88 -

Schedule B-6 (cont'd)

FY 2017 FY 2017 Percentage of

Customer Revenue Rank Total Revenue

MLSBC Cruise Ltd. 24,126,934$ * 1 24.6%

Carnival Cruise Lines 22,103,789 * 2 22.6%

Magical Cruise Company 19,538,432 * 3 19.9%

Norwegian Cruise Line 4,411,076 * 4 4.5%

Victory Casino Cruise 2,428,687 5 2.5%

Ambassador Services, Inc & LLC 2,278,246 6 2.3%

Seaport Canaveral 2,113,919 7 2.2%

GT USA 1,092,871 8 1.1%

Moran Gulf Shipping 835,155 9 0.9%

Martin Marietta 723,711 10 0.7%

Totals 79,652,820$ 81.3%

* These amounts differ from those in the notes to the financial statements due to the

inclusion of parking lot revenue.

This report is generated by the Finance Department.


Ten Largest Revenue Generating Customers

Fiscal Years ended September 30, 2008 and 2017

- 89 -

Schedule C-1


Revenue Bond Coverage


Net Revenue

Fiscal Gross Revenue Total Expenses Available

Year (1) (2) for Debt Service

2008 46,757,126$ * 29,027,084$ * 17,730,042$

2009 44,132,230 26,015,339 18,116,891

2010 47,588,935 24,998,990 22,589,945

2011 56,337,062 27,702,248 28,634,814

2012 66,686,796 26,838,250 39,848,546

2013 68,450,311 29,666,500 38,783,811

2014 71,995,570 35,643,427 ** 36,352,143

2015 77,898,494 36,860,800 41,037,694

2016 85,643,093 39,794,234 45,848,859

2017 93,725,117 47,294,188 46,430,929

(1) Gross revenue includes operating revenues, investment earnings, adding back bad debt per bond covenant.

(2) Expenses do not include non-cash outlays such as depreciation, amortization, bad debt expense, loss on

equipment disposals, interest or any grant related expenses.

* These items have been reclassified to conform to the FY09 financial statement presentation.

** These items have been reclassified to conform to the FY15 financial statement presentation.

- 90 -

Schedule C-1 (cont'd)


Revenue Bond Coverage


Fiscal Coverage

Year Principal Interest Total (3)

2008 3,575,000$ 2,437,154$ 6,012,154$ 2.95

2009 4,585,000 3,722,974 8,307,974 2.18

2010 4,610,000 3,695,413 8,305,413 2.72

2011 8,106,324 4,119,687 12,226,011 2.34

2012 7,679,461 4,611,109 12,290,570 3.24

2013 7,298,426 4,033,486 11,331,912 3.42

2014 8,295,063 3,779,364 12,074,427 3.01

2015 12,346,205 6,834,674 19,180,879 2.14

2016 13,064,689 6,350,480 19,415,169 2.36

2017 12,538,605 8,442,510 20,981,115 2.21

(3) Required coverage is 1.25

Debt Service Requirements

- 91 -

Schedule C-2

Ratio of Total Debt

Fiscal Revenue Capital Notes Total Debt to Ship Per

Year Bonds Leases Payable Debt Revenue Passenger

(1) (2)

2008 87,733,284$ * -$ 911,739$ 88,645,023$ 228% 25$

2009 83,358,532 * - 831,022 84,189,554 234% 26

2010 78,960,608 * - 745,328 79,705,936 203% 28

2011 113,068,377 * - 654,348 113,722,725 236% 36

2012 104,807,323 * - 557,757 105,365,080 182% 26

2013 98,573,438 ** - 455,209 99,028,647 169% 25

2014 209,610,409 *** - 346,335 209,956,744 335% 50

2015 197,369,979 *** - 230,745 197,600,724 290% 47

2016 246,426,583 *** - 108,027 246,534,610 328% 58

2017 289,432,978 *** - - 289,432,978 356% 64

(1) Ship Revenue (Cruise and Cargo) used to find Ratio to Debt can be found in Schedule A-3.

(2 ) To find Total Debt per Passenger Schedule B-4 was used.

* Revenue bonds payable net of unamortized discounts, premiums, and loss on refunding.

** FY2013 has been restated due to implementation of GASB 65 which requires deferred loss on refunding to be shown as an asset,

deferred outflow of resources, instead of netted against revenue bonds to conform to the FY2014 financial statement presentation.

*** Revenue bonds payable net of unamortized discounts and premiums.


Ratios of Outstanding Debt By Type


- 92 -

Schedule D-1


Demographic Statistics for Brevard County

(Estimates)


Personal Per Capita

Fiscal Income Personal Unemployment

Year Population (in thousands) Income Rate

(1) (2) (2) (1)

2008 556,213 20,440,080$ 37,686$ 7.3%

2009 555,657 19,521,711 36,011 11.3

2010 543,376 19,945,159 36,675 11.9

2011 543,566 * 20,670,931 38,028 11.6

2012 547,307 * 21,766,214 39,770 9.1

2013 548,424 21,713,658 39,420 7.2

2014 558,489 21,829,233 ** 39,198 ** 6.4

2015 561,714 23,013,606 ** 40,511 ** 5.6

2016 568,088 N/A N/A 5.2

2017 579,130 N/A N/A 3.6

(1) Florida Research and Economic Database of Labor Market Information.

(2) U.S. Bureau of Economic Analysis

N/A- information not available for this year.

* Revised numbers for FY2013 presentation.

** Revised numbers for FY2016 presentation.

- 93 -

Schedule D-2

Number of Percentage Number of Percentage

Employer Employees of Total Rank Employees of Total Rank

Brevard County School Board 9,000 3.64% 1 8,535 3.51% 1

Health First, Inc. 7,700 3.11% 2 6,000 2.47% 4

Harris Corporation 5,600 2.27% 3 6,391 2.63% 2

Northrop Grumman Corporation 3,930 1.59% 4 2000 0.82% 9

Brevard County Government 2,500 1.01% 5 2,500 1.03% 7

Florida Institute of Technology 2,380 0.96% 6 - - -

NASA 1,800 0.73% 7 - - -

Space Gateway Support 1,750 0.71% 8 3,000 1.23% 6

Wuesthoff Health System 1,500 0.61% 9 2,400 0.99% 8

Rockwell Collins 1,455 0.59% 10 - - -

United Space Alliance - - - 6,300 2.59% 3

45th Space Wing - - - 4,174 1.72% 5

The Boeing Company - - - 1,962 0.81% 10

Total 37,615 15.22% 43,262 17.80%

Total County Employment 247,198 243,264

Source: Florida Research and Economic Database & Economic Development of Florida's Space Coast,

and Brevard County.


Principal Employers

Brevard County 2017 and 2008

2017 2008

- 94 -

Titusville

Cocoa

Kennedy Space Center

SR 405

SR 4

07

SR 3

SR 528

SR 520

Rockledge

Cocoa Beach

Port Canaveral

Cape Canaveral

SR A

1A

34,223Voters

36,525 Voters

32,690 Voters

36,985 Voters

31,316 Voters

Canaveral Port AuthorityApproved Commissioner Districts and Registered Voters, January 2018

-95-

Schedule D-3

Schedule E-1

Parks and

Fiscal Operations Recreation & Public

Year Administration & Facilities Exploration Safety TotalTower

2008 39.0 110.0 ** 16.5 27.0 192.5

2009 36.0 93.0 ** 19.5 32.0 180.5

2010 39.0 93.0 ** 9.0 40.5 181.5

2011 35.0 100.0 ** 7.0 66.5 208.5

2012 36.0 78.5 ** 10.0 66.5 191.0

2013 41.0 83.5 ** 14.5 66.5 205.5

2014 57.0 93.0 ** 24.0 50.0 224.0

2015 58.0 94.0 ** 23.5 8.0 183.5

2016 55.0 125.0 26.0 5.0 211.0

2017 53.0 140.5 25.0 5.0 223.5

Source: Full time equivalent employees per the adopted budget.

** Balances have been reclassified to remove Parks and Recreation,

& Exploration Tower.


Employee Positions by Function- Full Time Equivalent


- 96 -

Schedule E-2

- 97 -

COUNTRY COMMODITYArgentina Petroleum, Juice ConcentrateAscension Island Containers, Cars/Trucks, General The Bahamas Petroleum, Limestone, Salt, Containers, GeneralCanada Petroleum, Granite, NewsprintChile Fertilizer, SupersacksChina Machinery/EquipmentColombia PetroleumCosta Rica ContainersCuracao PetroleumFinland PetroleumGermany Lumber, Steel, Machinery/ Equipment, General Guatemala ContainersHonduras ContainersIndia PetroleumJapan Petroleum, SlagMexico Cars/Trucks The Netherlands Petroleum, SaltNorway PetroleumPoland Cars/TrucksRussia PetroleumSouth Korea Petroleum, Machinery/Equipment, Genera;Spain Petroleum, Gypsum

COUNTRY COMMODITYArgentina Juice ConcentrateAscension Island Cars/Trucks, Containers, GeneralThe Bahamas Petroleum, Containers, Salt, GeneralColombia Cars/TrucksCosta Rica Cars/TrucksDominican Republic Cars/TrucksGuatemala Cars/TrucksHonduras Cars/TrucksJordan Cars/TrucksMexico Cars/TrucksThe Netherlands Concentrate, Single-Strength JuiceSaudi Arabia Cars/TrucksTurkey Cars/TrucksUnited Kingdom ContainersU.S.A. Petroleum, Slag, Containers, Machinery/Equipment, General

IMPORTS

EXPORTS

Sweden Lumber, Machinery/EquipmentTrinidad & Tobago Cars/TrucksUnited Kingdom PetroleumU.S.A. Petroleum, Newsprint, Machinery/Equipment, GeneralVenezuela PetroleumVirgin Islands Petroleum

Port Canaveral World Trading Partners

Schedule E-3

Commodity 2008 2009 2010 2011 2012

Petroleum 920,585 990,594 1,892,632 3,399,958 2,949,703

Cement 34,667 33,898 32,787 - -

Newsprint 71,381 56,377 42,404 - -

Scrap Metal - - 7,498 * 9,985 -

Salt 204,100 210,900 192,050 227,708 219,311

Pumice - 8,818 - - -

Lumber 113,601 30,733 9,297 7,533 4,477

Concentrate 39,427 46,448 37,539 50,972 34,871


Fresh Citrus/Produce 67,035 78,672 16,261 10,159 279

General Miscellaneous 57,719 10,075 5,261 14,477 15,196

Containers - - - - -


Bulk Fertilizer - - 9,320 * 55,914 52,378


Granite/Rock 147,170 292,004 185,263 193,607 102,016

Slag/Sand 232,122 137,169 296,064 235,856 243,835

Totals 2,395,779 2,626,795 3,218,144 4,547,724 3,904,986

* FY2010 balances have been reclassified to appropriate commodities out of the General



Cargo Tonnage

(in short tons)


- 98 -

Schedule E-3 (cont'd)


Cargo Tonnage

(in short tons)


Commodity 2013 2014 2015 2016 2017

Petroleum 2,556,890 2,280,510 2,817,361 3,845,853 3,957,363

Cement - - - - -

Newsprint - 4,907 - 21,428 46,692

Scrap Metal - - 27,528 - -

Salt 241,910 192,125 224,272 220,329 277,976

Pumice - - - - -

Lumber 11,758 9,383 15,151 29,410 111,185

Concentrate 37,159 29,693 25,163 25,125 10,510


Fresh Citrus/Produce 258 - - - -

General Miscellaneous 8,323 6,777 10,162 20,259 57,585

Containers - - - - 41,943


Bulk Fertilizer 86,613 48,122 67,100 81,411 43,552


Granite/Rock 291,367 234,786 281,395 318,261 404,229

Slag/Sand 306,637 176,236 397,903 595,697 650,249

Totals 3,874,266 3,362,282 4,148,243 5,497,028 5,990,763

- 99 -

Schedule E-4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cruise

Multi Day Cruises 482 495 524 590 705 682 698 679 668 658

Gaming Vessels 1,064 1,088 94 115 658 722 721 702 720 737

Public Safety

Arrests* - - - - 23 32 24 - - -

Uniform Traffic Citations* - - - - 80 252 199 - - -

Parking Citations* - - - - 76 74 5 - - -

Fire Calls 83 75 75 79 70 61 241 231 262 296 Non-Fire Response

Calls 1,926 1,844 1,964 2,204 2,315 2,497 2,225 2,256 2,512 2,541

County Sheriff's Office.

Source: Cruise information comes from the Finance Department, Public Safety information comes from the Public

Safety Department and Fire Department


Operating Indicators by Function


*The Port Police were disbanded as of Sept. 30th, 2014. The Authority now contracts with the Brevard

- 100 -

Schedule E-5

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

General

Cruise Terminals 6 6 6 6 7 7 7 7 7 7

Cargo Terminals 11 11 11 11 11 10 10 11 11 11

Warehouse Storage

-sq ft (in thousands) 70.8 70.8 106.5 106.5 106.5 106.5 317 317 567 567

Developed Land 535 535 535 535 535 603 643 715 715 715

Public Boat Docks 9 9 9 9 9 9 10 10 10 10

Public Safety

Security Building 1 1 1 1 1 1 1 1 1 0

Interagency Maritime

Operations Center 0 0 0 1 1 1 1 1 1 1

Patrol Vehicles 0 3 12 12 19 21 21 0 0 0 *

Sargeant Vehicles 0 0 3 3 3 4 4 0 0 0 *

Chief/Lieutenant Vehicles 0 1 1 3 3 3 3 0 0 0 *

Patrol Boats 4 4 4 4 4 5 5 0 0 0 *

Mobile Command Center 1 1 1 1 1 1 1 1 1 1

Fire Station 1 1 1 1 1 2 2 2 2 2

Fire/Rescue Vehicles 5 5 5 5 5 6 6 6 6 6

Source: Gerenal information section comes from the Engineering and Tenant & Property Development department.

Public safety section is supplied by the Public Safety Department and Fire Department.

* The Port Police were disbanded as of Sept. 30th, 2014. Assets were transferred to the Sherriff's office.


Capital Assets by Function


- 101 -

Schedule E-6


Capital Improvements


Fiscal

Year Total

2008 11,901,462$

2009 27,308,361

2010 23,897,711

2011 35,227,062

2012 93,531,719

2013 54,273,091 *

2014 124,336,508

2015 101,881,393

2016 112,777,097

2017 31,716,607

* Corrected to conform with FY2013 Financial Statements

- 102 -

CO

MPLIA

NC

E SECTIO

N

- 103 -

Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit

of Financial Statements Performed in Accordance With Governmental Auditing Standards



We have audited, in accordance with the 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, the financial statements of the Canaveral Port Authority (the Authority), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated March 27, 2018.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority'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 Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’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 was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

- 104 -

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the 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.


- 105 -

Report on Compliance for the Major State Project; and Report on Internal Control Over Compliance;

Required by Chapter 10.550, Rules of the Florida Auditor General



Report on Compliance for Each Major State Project We have audited the Canaveral Port Authority’s (the Authority) compliance with the types of compliance requirements described in the Department of Financial Services’ State Projects Compliance Supplement that could have a direct and material effect on the Authority’s major state project for the year ended September 30, 2017. The Authority’s major state project is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility Management is responsible for compliance with the state statutes, regulations, and the terms and conditions of its state financial assistance applicable to its state projects.

Auditor’s Responsibility Our responsibility is to express an opinion on compliance for the Authority’s major state project 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 the audit requirements of Chapter 10.550, Rules of the Florida Auditor General. Those standards and Chapter 10.550 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 state project occurred. An audit includes examining, on a test basis, evidence about the Authority’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 the major state project. However, our audit does not provide a legal determination of the Authority’s compliance.

- 106 -

Opinion on the Major State Project In our opinion, the Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major state project for the year ended September 30, 2017.

Report on Internal Control Over Compliance Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority’s internal control over compliance with the types of requirements that could have a direct and material effect on the major state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major state project and to test and report on internal control over compliance in accordance with Chapter 10.550, 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 Authority’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 state project 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 state project 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 state project 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 Chapter 10.550. Accordingly, this report is not suitable for any other purpose.


Canaveral Port Authority, Florida

Schedule of Findings and Questioned Costs For the Year Ended September 30, 2017

- 107 -

I - Summary of Independent Auditor's Results

Financial Statements

Type of auditor's report issued:

Internal control over financial reporting:Material weakness(es) identified? Yes X NoSignificant deficiency(ies) identified? Yes X None Reported

Noncompliance material to financial statements noted? Yes X No

State Financial Assistance

Internal control over major state projects:Material weakness(es) identified? Yes X NoSignificant deficiency(ies) identified? Yes X None Reported

Type of auditor's report issued on compliance formajor projects:Any audit findings disclosed that are requiredto be reported in accordance with state projectspursuant to Chapter 10.550, Rules of the Auditor General Yes X No

Identification of major projects:

CSFA Number(s)55.034

Dollar threshold used to distinguish between type A and type B projects: $300,000

Unmodified

Unmodified

Name of State ProjectSeaport Investment Program


Schedule of Findings and Questioned Costs (Continued) For the Year Ended September 30, 2017

- 108 -

II – Financial Statement Findings

A. Internal Control Over Financial Reporting

No Matters to Report.

B. Compliance and Other Matters


III – State Financial Assistance Findings and Questioned Costs

A. Internal Control Over Compliance


B. Compliance



Summary Schedule of Prior Audit Findings For the Year Ended September 30, 2017

- 109 -

None Reported.

OTH

ER IN

FOR

MA

TION

- 110 -


Appendix B – Schedule of Insurance in ForceFor the Year Ended September 30, 2017

Property CoverageTotal insured values 548,738,812$ Limit on buildings, contents, EDP, flood, equipment, terrorism and boats 200,042,200$

Port LiabilityComprehensive per occurrence/bodily injury and property damage 10,000,000$

Automobile Liability and Physical DamageBodily Injury and Property Damage 1,000,000$ Auto Medical Payments, any one accident or loss 5,000$ Personal Injury Protection StatutoryHired Auto Liability 1,000,000$

Excess Port LiabilityPer occurrence/aggregate 90,000,000$

Public Officials Liability, Claims Made Policy, includes D&O and EPLIEach claim and aggregate, including claims expense 50,000,000$

Comprehensive Crime insuranceEmployee Theft, per loss/aggregate 500,000$ Forgery or alteration IncludedComputer fraud Included

Florida Storage TankEach incident/Aggregate 2,000,000$

Fiduciary Liability, Claims Made PolicyAggregate 1,000,000$

Privacy & Network Protection PolicyPrivacy Liability, Network Security per occurrence/aggregate 3,000,000$

Kidnap & RansomKidnap, Ransom, & Extortion – Each insured event/aggregate 1,000,000$ Threat – each insured event 75,000$ Death & Dismemberment – each insured person 250,000$ Death & Dismemberment – each insured event/aggregate 1,250,000$

Workers’ Compensation, Employers LiabilityBodily injury by accident/each accident 1,000,000$ Bodily injury by disease/each employee 1,000,000$ Bodily injury by disease/aggregate 1,000,000$

PORT CANAVERAL FACILITIES

AVOCETLAGOON

RODNEY S. KETCHAMPARK

BOAT RAMPSCANAVERAL LOCKS

PAR

KIN

GG

AR

AG

E

PORTENTRANCE

NORTH

WEST TURNING

BASIN

BANANA RIVER

CAPECANAVERALAIR FORCE STATION


MARITIME CENTER

CUSTOMS & BORDER PATROL

(CBP)

TRIDENTBASIN

ATLANTICOCEAN

S.R. 528 BEACHLINETO COCOA/ORLANDO

GLEN CHEEK DR.

MULLET ROAD

SCALLOP DR. BLUEWATER DR.

FLO

UN

DER

ST.

CO

LUM

BIA

RD

.

DIS

CO

VER

Y R

D.

MA

RLI

N S

T.

POM

PAN

O S

T.

WAREHOUSE RD.

SPRINT RD

.

HERCULES RD.

HER

RIN

G S

T.

BA

SIN

RD

.

MARINA DISTRICT

COMMERCIAL PARK

CT10

CT5

CT8

THE COVE RESTAURANT, RETAIL

& MARKET AREA FREDDIE PATRICK PARK

CANAVERALPILOTS FUTURE CT3

NCB3NCB4

WHSE. NC

B2

NC

B1

SCB4 TB1 SCB3 SCB2 SCB1

GATE

CAMPGROUND & CABINS

CT2

HANSON SLAG

CEMEX

MORTONSALT

CPACARGOYARD

SEAPORTCANAVERAL

FUEL TERMINAL

RO/RO RAMP

COASTGUARD

PORTSECURITY

OPERATIONSCENTER

SPACEXFACILITY

FIRESTATION

CANAVERAL CONTAINER TERMINAL(GT USA)

TO LOCK/BARGE CANAL/ INTRACOASTAL WATERWAY

DISNEYCRUISE

LINE

CRUISE TERMINALS 5 & 6

ENTRANCE


ENTRANCE

SR 4

01

SR 401

POSEIDON WHARF

CT2 PARKING

PARKING

PA

RK

ING

BEA

CHES

& F

ISH

ING

CT3 PARKING

JETTY PARK

GEORGE J. KING BLVD. YEAR-ROUND LIFEGUARDS

PAVILION

BOAT RAMPS

BAIT & TACKLE SHOP

REGISTRATION

CONCESSIONS,BAIT & SNACK BAR

BEACH CONCESSIONS& RENTALS

NAVALORDNANCETEST UNIT

(NOTU)

KENNEDY SPACE CENTER

CAPE CANAVERAL LIGHTHOUSE

MILITARYPROPERTY

MALCOLM E. McLOUTHFISHING PIER

SDDC 832ND

CAPE CANAVERAL DETACHMENT

PASS & I.D.

ARMYTRANSPORTATION

WHARF

SUBMARINEWHARF

FIRE STATION,PORT CANAVERAL

MARITIME ACADEMY& TOWER

SOUTHINTERMODAL

GATE

ASI WAREHOUSESAND STORAGE

YARDS

HERRING ST.CONTINENTAL

CEMENT

BULKCONVEYOR

MARTIN MARIETTAMATERIALSAGGREGATE TERMINAL

MARITIME PURCHASING/RECEIVING

CENTER MARITIME FACILITIES

CENTER

CARGO RD.

PAY

NE

WA

Y

FRA

NK

A. K

ENN

EDY

RD

.

MAGELLAN RD.

SNAPPER RD.

GR

OU

PER

RD

.

DOLPHIN RD.

SNOOK RD.

JETTY PARK DR.

BEACH

ES/HO

TELS

A1A

SOU

TH

(ASTRO

NA

UT BLV

D.)

DA

VE

NIS

BET

DR

.

CH

AR

LES

M. R

OW

LAN

D D

R.

CR

UIS

E TE

RM

INA

L D

R.

GEORGE J. KING BLVD.

CHALLENGER RD.

CONTAINER RD.

NC

B8

NCB5

NCB6

CHRISTOPHER COLUMBUS DR.

PORT PROPERTY

PORT PROPERTY

TRANSMONTAIGNE FUEL TERMINAL

CITY OF CAPE CANAVERAL

COCOA BEACH

CT6

CT1

EXPLORATIONTOWER

PARKINGGARAGE

PARKING

PARKING

PAR

KIN

G

CABINS

NO

RTH

ATL

AN

TIC

AV

E.

ATLANTIS RD.

MIDDLE TURNING

BASIN

PORTENTRANCE

SOUTH

PARKING

PARKING

CT1 PLAZA KIOSKS

PARKING

OVER

PASS

C

GT USAGATE

NORTHINTERMODAL

GATE

VSA 7

AIR FORCEEUL AREA

SPACE FLORIDA

BOARDWALK/BEACH ACCESS

445 Challenger Rd., Suite 301Cape Canaveral, FL 32920 USATEL: 1-888-767-8226 | 321-783-7831 | FAX: 321-784-6223www.portcanaveral.com

INTER-AGENCYMARITIME

OPERATIONSCENTER

IC2053/3/2018

FEC Railroad

FEC R

ailroad

COCOA

TITUSVILLE

COCOA BEACH

CAPE CANAVERAL

KENNEDYSPACE

CENTER

Beachline Expressway

Florid

a Turn

pike

A1A

ORLANDOINTERNATIONAL

AIRPORT

ORLANDO/SANFORDINTERNATIONAL

AIRPORT

DAYTONAINTERNATIONAL

AIRPORT

SPACE COASTREGIONALAIRPORT

ORLANDO MELBOURNEINTERNATIONAL

AIRPORT

528

408

46

50

417

92

520

PORT CANAVERALINLAND LOGISTICS CENTER

AT TITUSVILLE

ATLANTICOCEAN

Port Canaveral

Orlando

PARKINGGARAGE

AUTO PORT, INC.

GT USA

PARRISH HEALTHCARE

CENTER

PARKINGGARAGE

PARKING

GARAGE

Atlanta, GA(436 miles/703 km)

Birmingham, AL(507 miles/817 km)

Charleston, SC(310 miles/499 km)

Charlotte, NC(471 miles/757 km)

Freeport, The Bahamas(171 miles/275 km)

Jacksonville, FL(140 miles/226 km)

Knoxville, TN(560 miles/901 km)

Miami, FL(183 miles/295 km)

Nassau, The Bahamas(314 miles/505 km)

Orlando, FL(31 miles/50 km)

Raleigh, NC(522 miles/840 km)

Richmond, VA(653 miles/1053 km)

Savannah, GA(254 miles/410 km)

Tampa, FL(123 miles/198 km)

Gulf of Mexico

AtlanticOcean

Distances to key markets from the Port FL

OR

ID

A

Port CanaveralLatitude: 28° 24’ 46” NorthLongitude: 80° 3’ 49” West

CT1

CT2

CT3

= SOUTH SIDE OF PORT

B SIDE CRUISE TERMINALS— Royal Caribbean International

— Victory Casino Cruises

— Under Development

= GATE

CT = CRUISE TERMINAL

NCB = NORTH CARGO BERTH

SCB = SOUTH CARGO BERTH

TB = TANKER BERTH

= NORTH SIDE OF PORT

A SIDE CRUISE TERMINALS

CT5 — Carnival Cruise Lines CT6 — Carnival Cruise Lines

CT8 — Disney Cruise Line

CT10 — Carnival Cruise Lines Royal Caribbean International

Legend


AVOCETLAGOON



PAR

KIN

GG

AR

AG

E

PORTENTRANCE

NORTH

WEST TURNING

BASIN

BANANA RIVER



MARITIME CENTER


(CBP)

TRIDENTBASIN

ATLANTICOCEAN


GLEN CHEEK DR.

MULLET ROAD


FLO

UN

DER

ST.

CO

LUM

BIA

RD

.

DIS

CO

VER

Y R

D.

MA

RLI

N S

T.

POM

PAN

O S

T.

WAREHOUSE RD.

SPRINT RD

.

HERCULES RD.

HER

RIN

G S

T.

BA

SIN

RD

.

MARINA DISTRICT

COMMERCIAL PARK

CT10

CT5

CT8




NCB3NCB4

WHSE. NC

B2

NC

B1


GATE

CAMPGROUND & CABINS

CT2

HANSON SLAG

CEMEX

MORTONSALT

CPACARGOYARD

SEAPORTCANAVERAL

FUEL TERMINAL

RO/RO RAMP

COASTGUARD

PORTSECURITY

OPERATIONSCENTER

SPACEXFACILITY

FIRESTATION



DISNEYCRUISE

LINE


ENTRANCE


ENTRANCE

SR 4

01

SR 401

POSEIDON WHARF

CT2 PARKING

PARKING

PA

RK

ING

BEA

CHES

& F

ISH

ING

CT3 PARKING

JETTY PARK


PAVILION

BOAT RAMPS

BAIT & TACKLE SHOP

REGISTRATION




(NOTU)



MILITARYPROPERTY


SDDC 832ND


PASS & I.D.

ARMYTRANSPORTATION

WHARF

SUBMARINEWHARF



SOUTHINTERMODAL

GATE


YARDS


CEMENT

BULKCONVEYOR




CENTER

CARGO RD.

PAY

NE

WA

Y

FRA

NK

A. K

ENN

EDY

RD

.

MAGELLAN RD.

SNAPPER RD.

GR

OU

PER

RD

.

DOLPHIN RD.

SNOOK RD.

JETTY PARK DR.

BEACH

ES/HO

TELS

A1A

SOU

TH

(ASTRO

NA

UT BLV

D.)

DA

VE

NIS

BET

DR

.

CH

AR

LES

M. R

OW

LAN

D D

R.

CR

UIS

E TE

RM

INA

L D

R.


CHALLENGER RD.

CONTAINER RD.

NC

B8

NCB5

NCB6


PORT PROPERTY

PORT PROPERTY



COCOA BEACH

CT6

CT1

EXPLORATIONTOWER

PARKINGGARAGE

PARKING

PARKING

PAR

KIN

G

CABINS

NO

RTH

ATL

AN

TIC

AV

E.

ATLANTIS RD.

MIDDLE TURNING

BASIN

PORTENTRANCE

SOUTH

PARKING

PARKING

CT1 PLAZA KIOSKS

PARKING

OVER

PASS

C

GT USAGATE

NORTHINTERMODAL

GATE

VSA 7

AIR FORCEEUL AREA

SPACE FLORIDA




OPERATIONSCENTER

IC2053/3/2018

FEC Railroad

FEC R

ailroad

COCOA

TITUSVILLE

COCOA BEACH

CAPE CANAVERAL

KENNEDYSPACE

CENTER


Florid

a Turn

pike

A1A


AIRPORT


AIRPORT


AIRPORT



AIRPORT

528

408

46

50

417

92

520


AT TITUSVILLE

ATLANTICOCEAN

Port Canaveral

Orlando

PARKINGGARAGE

AUTO PORT, INC.

GT USA

PARRISH HEALTHCARE

CENTER

PARKINGGARAGE

PARKING

GARAGE















Gulf of Mexico

AtlanticOcean


OR

ID

A


CT1

CT2

CT3





= GATE




TB = TANKER BERTH






Legend


AVOCETLAGOON



PAR

KIN

GG

AR

AG

E

PORTENTRANCE

NORTH

WEST TURNING

BASIN

BANANA RIVER



MARITIME CENTER


(CBP)

TRIDENTBASIN

ATLANTICOCEAN


GLEN CHEEK DR.

MULLET ROAD


FLO

UN

DER

ST.

CO

LUM

BIA

RD

.

DIS

CO

VER

Y R

D.

MA

RLI

N S

T.

POM

PAN

O S

T.

WAREHOUSE RD.

SPRINT RD

.

HERCULES RD.

HER

RIN

G S

T.

BA

SIN

RD

.

MARINA DISTRICT

COMMERCIAL PARK

CT10

CT5

CT8




NCB3NCB4

WHSE. NC

B2

NC

B1


GATE

CAMPGROUND & CABINS

CT2

HANSON SLAG

CEMEX

MORTONSALT

CPACARGOYARD

SEAPORTCANAVERAL

FUEL TERMINAL

RO/RO RAMP

COASTGUARD

PORTSECURITY

OPERATIONSCENTER

SPACEXFACILITY

FIRESTATION



DISNEYCRUISE

LINE


ENTRANCE


ENTRANCE

SR 4

01

SR 401

POSEIDON WHARF

CT2 PARKING

PARKING

PA

RK

ING

BEA

CHES

& F

ISH

ING

CT3 PARKING

JETTY PARK


PAVILION

BOAT RAMPS

BAIT & TACKLE SHOP

REGISTRATION




(NOTU)



MILITARYPROPERTY


SDDC 832ND


PASS & I.D.

ARMYTRANSPORTATION

WHARF

SUBMARINEWHARF



SOUTHINTERMODAL

GATE


YARDS


CEMENT

BULKCONVEYOR




CENTER

CARGO RD.

PAY

NE

WA

Y

FRA

NK

A. K

ENN

EDY

RD

.

MAGELLAN RD.

SNAPPER RD.

GR

OU

PER

RD

.

DOLPHIN RD.

SNOOK RD.

JETTY PARK DR.

BEACH

ES/HO

TELS

A1A

SOU

TH

(ASTRO

NA

UT BLV

D.)

DA

VE

NIS

BET

DR

.

CH

AR

LES

M. R

OW

LAN

D D

R.

CR

UIS

E TE

RM

INA

L D

R.


CHALLENGER RD.

CONTAINER RD.

NC

B8

NCB5

NCB6


PORT PROPERTY

PORT PROPERTY



COCOA BEACH

CT6

CT1

EXPLORATIONTOWER

PARKINGGARAGE

PARKING

PARKING

PAR

KIN

G

CABINS

NO

RTH

ATL

AN

TIC

AV

E.

ATLANTIS RD.

MIDDLE TURNING

BASIN

PORTENTRANCE

SOUTH

PARKING

PARKING

CT1 PLAZA KIOSKS

PARKING

OVER

PASS

C

GT USAGATE

NORTHINTERMODAL

GATE

VSA 7

AIR FORCEEUL AREA

SPACE FLORIDA




OPERATIONSCENTER

IC2053/3/2018

FEC Railroad

FEC R

ailroad

COCOA

TITUSVILLE

COCOA BEACH

CAPE CANAVERAL

KENNEDYSPACE

CENTER


Florid

a Turn

pike

A1A


AIRPORT


AIRPORT


AIRPORT



AIRPORT

528

408

46

50

417

92

520


AT TITUSVILLE

ATLANTICOCEAN

Port Canaveral

Orlando

PARKINGGARAGE

AUTO PORT, INC.

GT USA

PARRISH HEALTHCARE

CENTER

PARKINGGARAGE

PARKING

GARAGE















Gulf of Mexico

AtlanticOcean


OR

ID

A


CT1

CT2

CT3





= GATE




TB = TANKER BERTH






Legend


AVOCETLAGOON



PAR

KIN

GG

AR

AG

E

PORTENTRANCE

NORTH

WEST TURNING

BASIN

BANANA RIVER



MARITIME CENTER


(CBP)

TRIDENTBASIN

ATLANTICOCEAN


GLEN CHEEK DR.

MULLET ROAD


FLO

UN

DER

ST.

CO

LUM

BIA

RD

.

DIS

CO

VER

Y R

D.

MA

RLI

N S

T.

POM

PAN

O S

T.

WAREHOUSE RD.

SPRINT RD

.

HERCULES RD.

HER

RIN

G S

T.

BA

SIN

RD

.

MARINA DISTRICT

COMMERCIAL PARK

CT10

CT5

CT8




NCB3NCB4

WHSE. NC

B2

NC

B1


GATE

CAMPGROUND & CABINS

CT2

HANSON SLAG

CEMEX

MORTONSALT

CPACARGOYARD

SEAPORTCANAVERAL

FUEL TERMINAL

RO/RO RAMP

COASTGUARD

PORTSECURITY

OPERATIONSCENTER

SPACEXFACILITY

FIRESTATION



DISNEYCRUISE

LINE


ENTRANCE


ENTRANCE

SR 4

01

SR 401

POSEIDON WHARF

CT2 PARKING

PARKING

PA

RK

ING

BEA

CHES

& F

ISH

ING

CT3 PARKING

JETTY PARK


PAVILION

BOAT RAMPS

BAIT & TACKLE SHOP

REGISTRATION




(NOTU)



MILITARYPROPERTY


SDDC 832ND


PASS & I.D.

ARMYTRANSPORTATION

WHARF

SUBMARINEWHARF



SOUTHINTERMODAL

GATE


YARDS


CEMENT

BULKCONVEYOR




CENTER

CARGO RD.

PAY

NE

WA

Y

FRA

NK

A. K

ENN

EDY

RD

.

MAGELLAN RD.

SNAPPER RD.

GR

OU

PER

RD

.

DOLPHIN RD.

SNOOK RD.

JETTY PARK DR.

BEACH

ES/HO

TELS

A1A

SOU

TH

(ASTRO

NA

UT BLV

D.)

DA

VE

NIS

BET

DR

.

CH

AR

LES

M. R

OW

LAN

D D

R.

CR

UIS

E TE

RM

INA

L D

R.


CHALLENGER RD.

CONTAINER RD.

NC

B8

NCB5

NCB6


PORT PROPERTY

PORT PROPERTY



COCOA BEACH

CT6

CT1

EXPLORATIONTOWER

PARKINGGARAGE

PARKING

PARKING

PAR

KIN

G

CABINS

NO

RTH

ATL

AN

TIC

AV

E.

ATLANTIS RD.

MIDDLE TURNING

BASIN

PORTENTRANCE

SOUTH

PARKING

PARKING

CT1 PLAZA KIOSKS

PARKING

OVER

PASS

C

GT USAGATE

NORTHINTERMODAL

GATE

VSA 7

AIR FORCEEUL AREA

SPACE FLORIDA




OPERATIONSCENTER

IC2053/3/2018

FEC Railroad

FEC R

ailroad

COCOA

TITUSVILLE

COCOA BEACH

CAPE CANAVERAL

KENNEDYSPACE

CENTER


Florid

a Turn

pike

A1A


AIRPORT


AIRPORT


AIRPORT



AIRPORT

528

408

46

50

417

92

520


AT TITUSVILLE

ATLANTICOCEAN

Port Canaveral

Orlando

PARKINGGARAGE

AUTO PORT, INC.

GT USA

PARRISH HEALTHCARE

CENTER

PARKINGGARAGE

PARKING

GARAGE















Gulf of Mexico

AtlanticOcean


OR

ID

A


CT1

CT2

CT3





= GATE




TB = TANKER BERTH






Legend


AVOCETLAGOON



PAR

KIN

GG

AR

AG

E

PORTENTRANCE

NORTH

WEST TURNING

BASIN

BANANA RIVER



MARITIME CENTER


(CBP)

TRIDENTBASIN

ATLANTICOCEAN


GLEN CHEEK DR.

MULLET ROAD


FLO

UN

DER

ST.

CO

LUM

BIA

RD

.

DIS

CO

VER

Y R

D.

MA

RLI

N S

T.

POM

PAN

O S

T.

WAREHOUSE RD.

SPRINT RD

.

HERCULES RD.

HER

RIN

G S

T.

BA

SIN

RD

.

MARINA DISTRICT

COMMERCIAL PARK

CT10

CT5

CT8




NCB3NCB4

WHSE. NC

B2

NC

B1


GATE

CAMPGROUND & CABINS

CT2

HANSON SLAG

CEMEX

MORTONSALT

CPACARGOYARD

SEAPORTCANAVERAL

FUEL TERMINAL

RO/RO RAMP

COASTGUARD

PORTSECURITY

OPERATIONSCENTER

SPACEXFACILITY

FIRESTATION



DISNEYCRUISE

LINE


ENTRANCE


ENTRANCE

SR 4

01

SR 401

POSEIDON WHARF

CT2 PARKING

PARKING

PA

RK

ING

BEA

CHES

& F

ISH

ING

CT3 PARKING

JETTY PARK


PAVILION

BOAT RAMPS

BAIT & TACKLE SHOP

REGISTRATION




(NOTU)



MILITARYPROPERTY


SDDC 832ND


PASS & I.D.

ARMYTRANSPORTATION

WHARF

SUBMARINEWHARF



SOUTHINTERMODAL

GATE


YARDS


CEMENT

BULKCONVEYOR




CENTER

CARGO RD.

PAY

NE

WA

Y

FRA

NK

A. K

ENN

EDY

RD

.

MAGELLAN RD.

SNAPPER RD.

GR

OU

PER

RD

.

DOLPHIN RD.

SNOOK RD.

JETTY PARK DR.

BEACH

ES/HO

TELS

A1A

SOU

TH

(ASTRO

NA

UT BLV

D.)

DA

VE

NIS

BET

DR

.

CH

AR

LES

M. R

OW

LAN

D D

R.

CR

UIS

E TE

RM

INA

L D

R.


CHALLENGER RD.

CONTAINER RD.

NC

B8

NCB5

NCB6


PORT PROPERTY

PORT PROPERTY



COCOA BEACH

CT6

CT1

EXPLORATIONTOWER

PARKINGGARAGE

PARKING

PARKING

PAR

KIN

G

CABINS

NO

RTH

ATL

AN

TIC

AV

E.

ATLANTIS RD.

MIDDLE TURNING

BASIN

PORTENTRANCE

SOUTH

PARKING

PARKING

CT1 PLAZA KIOSKS

PARKING

OVER

PASS

C

GT USAGATE

NORTHINTERMODAL

GATE

VSA 7

AIR FORCEEUL AREA

SPACE FLORIDA




OPERATIONSCENTER

IC2053/3/2018

FEC Railroad

FEC R

ailroad

COCOA

TITUSVILLE

COCOA BEACH

CAPE CANAVERAL

KENNEDYSPACE

CENTER


Florid

a Turn

pike

A1A


AIRPORT


AIRPORT


AIRPORT



AIRPORT

528

408

46

50

417

92

520


AT TITUSVILLE

ATLANTICOCEAN

Port Canaveral

Orlando

PARKINGGARAGE

AUTO PORT, INC.

GT USA

PARRISH HEALTHCARE

CENTER

PARKINGGARAGE

PARKING

GARAGE















Gulf of Mexico

AtlanticOcean


OR

ID

A


CT1

CT2

CT3





= GATE




TB = TANKER BERTH






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COMPREHENSIVE ANNUAL FINANCIAL REPORT · 2018. 5. 1. · COMPREHENSIVE ANNUAL FINANCIAL REPORT of...

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