The URL can be used to link to this page

05/13/2019Monday, May 13, 2019 9:00 AM City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Main Library - Council Chambers Council Work Session Work Session Agenda May 13, 2019Council Work Session Work Session Agenda 1. Call to Order 2. Presentations Police Oaths2. 1 May Service Awards2. 2 3. Finance Comprehensive Annual Financial Report for Fiscal Year 2018 (WSO)3.1 4. Gas System Approve an increase to Purchase Order No. 18001102 with Ultimate CNG, LLC in the amount of $275,600, for the period June 1, 2019 through August 30, 2019, to provide mobile compressed natural gas services at the Clearwater natural gas filling station, approve Agreement No. 9, UCNG Daily Temporary Mobile CNG Fueling Service for Clearwater Gas in Clearwater, FL and authorize the appropriate officials to execute same. (consent) 4.1 5. Parks and Recreation Approve contract for Women’s Softball Promotional Services to Michele Smith, Inc. of St. Petersburg, Florida, in the annual amount of $60,000 and two one-year renewal terms, in accordance with Code of Ordinances Section 2.564 Exceptions to Bid and authorize the appropriate officials to execute same. (consent) 5.1 Approve a proposal by Construction Manager at Risk DeLotto and Sons, Inc. of Tampa, Florida in the amount of $2,168,713 for construction of a multipurpose building at Countryside Sports Complex located at 3060 McMullen Booth Road and authorize the appropriate officials to execute same. (consent) 5.2 6. Police Department Amend the Clearwater Code of Ordinances Section 2.480.2, Miscellaneous Provisions, adding subsection (g), Missing Benefit Recipients relating to the Clearwater Police Officers’ Supplementary Pension and Retirement Plan and pass Ordinance 9278-19 on first reading. 6.1 7. Planning Page 2 City of Clearwater Printed on 5/10/2019 May 13, 2019Council Work Session Work Session Agenda Approve the annexation, initial Future Land Use Map designation of Residential Low (RL) and initial Zoning Atlas designation of Low Medium Density Residential (LMDR) District for 1204 Norwood Avenue and pass Ordinances 9271-19, 9272-19, and 9273-19 on first reading. (ANX2019-03010) 7.1 Approve the annexation, initial Future Land Use Map designation of Residential Low (RL) and initial Zoning Atlas designation of Low Medium Density Residential (LMDR) District for 3019 Lake Vista Drive, and pass Ordinances 9268-19, 9269-19, and 9270-19 on first reading. (ANX2019-03009) 7.2 Approve the annexation, initial Future Land Use Map designation of Residential Low (RL) and initial Zoning Atlas designation of Low Medium Density Residential (LMDR) District for 3057 Terrace View Lane and 3040 Grand View Avenue, and pass Ordinances 9274-19, 9275-19, and 9276-19 on first reading. (ATA2019-03001) 7.3 8. Public Utilities Authorize a blanket purchase order with Xylem, Inc. of Apopka, FL, in the annual amount of $500,000.00 with the option for two, one-year term extensions for the purchase of Flygt Pumps, replacement parts, and factory authorized service. (consent) 8.1 9. Solid Waste Authorize a purchase order to JD Smith Pest Control, Clearwater, FL, for the Main Library termite treatment extended warranty, not to exceed annual amount of $11,541.00; including two one-year renewal terms and authorize the appropriate officials to execute same. (consent) 9.1 10. Official Records and Legislative Services Amend the Clearwater Code of Ordinances, Section 2.251, changing the composition of the of the Sister Cities Advisory Board to include a representative from the Clearwater Arts Alliance, Inc. and pass Ordinance 9248-19 on first reading. 10.1 11. Legal Request for authority to institute a civil action on behalf of the City against the Estate of Mark Leonard Frank Sr. to recover $822.51 for an outstanding Utility Customer Service Bill. (consent) 11.1 Request for authority to institute a civil action on behalf of the City against Calvin Ladd to enforce an order of the Clearwater Municipal Code Enforcement Board. (consent) 11.2 Page 3 City of Clearwater Printed on 5/10/2019 May 13, 2019Council Work Session Work Session Agenda 12. City Manager Verbal Reports Report on Letter of Interest Process for the Adaptive Reuse of the Former Fire Station 45 12.1 Imagine Clearwater12.2 13. City Attorney Verbal Reports 14. Council Discussion Item Parking Study Results - Councilmember Allbritton14.1 15. New Business (items not on the agenda may be brought up asking they be scheduled for subsequent meetings or work sessions in accordance with Rule 1, Paragraph 2). 16. Closing Comments by Mayor 17. Adjourn 18. Presentation(s) for Council Meeting National Garden Week Proclamation - Anne Fogarty France, President of the Clearwater Garden Club 18.1 American Legion Poppy Days Proclamation - Gigi Janesik, American Legion Auxiliary 18.2 Safe Boating Week Proclamation - Ed Chesney, Marine and Aviation Director 18.3 Older Americans Month Proclamation18.4 Emergency Medical Services Week Proclamation18.5 Page 4 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6041 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: PresentationIn Control: Council Work Session Agenda Number: 2. 1 SUBJECT/RECOMMENDATION: Police Oaths SUMMARY: Tammy Barletto Benjamin Bieber Alexander Kaye Jonathan Reid Darrell Whitley APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6043 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: PresentationIn Control: Council Work Session Agenda Number: 2. 2 SUBJECT/RECOMMENDATION: May Service Awards SUMMARY: 5 Years of Service Donna Cacciatore Human Resources Iesha Brown Utility Customer Service 15 Years of Service James Westerman Fire Christopher Nelson Fire Jeffrey Wallace Fire Nathaniel Bowne Public Utilities Paul Roskey Parks and Recreation Patrick Zulla Engineering/Stormwater 20 Years of Service Brian Langille Gas Melissa Jackson Parks and Recreation Randy Higgins Engineering/Stormwater 25 Years of Service Nancy Cantrell Library Adam Athan Parks and Recreation Geraldine Blakley Public Utilities Nathan Ballouz Fire Carl Conyers Police Roberto Beruvides Police Todd Johnson Police Laura Spelman Police Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6149 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Finance Agenda Number: 3.1 SUBJECT/RECOMMENDATION: Comprehensive Annual Financial Report for Fiscal Year 2018 (WSO) SUMMARY: Presentation of the Comprehensive Annual Financial Report for Fiscal Year 2018. Page 1 City of Clearwater Printed on 5/10/2019 2017/2018 CITY OF CLEARWATER, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 On the cover: Focusing on the city’s iconic bluff, Imagine Clearwater is a master plan to revitalize the Downtown Clearwater waterfront area. The plan proposes a design for an expanded and improved waterfront park and recommends a set of programs to activate Downtown Clearwater for the benefit of all Clearwater citizens. This project is expected to be completed in two phases. Phase One is planned for north of Cleveland Street and includes the demolition of the Harborview Center, as well as the development of park features including the north portion of the “Bluff Walk,” “The Green” and “Coachman Garden.” Phase Two is the area south of Cleveland Street and includes the development of park features including “The Estuary,” as well as the south portion of the “Bluff Walk.” imagineclearwater.com George N. Cretekos Mayor David Albritton Doreen Caudell Dr. Bob Cundiff Hoyt Hamilton Councilmember Councilmember Councilmember Councilmember William B. Horne II City Manager Brian Jay Ravins Finance Director Prepared by: City of Clearwater Finance Department City of Clearwater, Florida Comprehensive Annual Financial Report for Fiscal Year Ended September 30, 2018 i ii City of Clearwater, Florida Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2018 TABLE OF CONTENTS INTRODUCTORY SECTION: Title Page and List of Elected and Appointed Officials .......................................................................................... i Letter of Transmittal ............................................................................................................................................... v Certificate of Achievement for Excellence in Financial Reporting ....................................................................... ix Organizational Chart .............................................................................................................................................. x FINANCIAL SECTION: Report of Independent Auditor .............................................................................................................................. 1 Management’s Discussion and Analysis ............................................................................................................... 5 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ........................................................................................................................... 20 Statement of Activities ................................................................................................................................ 21 Fund Financial Statements: Balance Sheet – Governmental Funds ..................................................................................................... 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............ 23 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ......... 24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................................................................... 25 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Non-GAAP Basis) – General Fund ...................................................................... 26 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (GAAP Basis) – Special Development Fund ......................................................... 27 Statement of Net Position – Proprietary Funds ........................................................................................ 28 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ........................ 32 Statement of Cash Flows – Proprietary Funds ......................................................................................... 36 Statement of Fiduciary Net Position – Fiduciary Funds ........................................................................... 40 Statement of Changes in Fiduciary Net Position - Fiduciary Funds ........................................................ 41 Notes to the Basic Financial Statements ...................................................................................................... 42 Required Supplemental Information -– Pension Trust Funds .......................................................................... 105 Required Supplemental Information – Other Postemployment Benefits ......................................................... 111 Combining and Individual Fund Statements and Schedule Combining Balance Sheet – Nonmajor Governmental Funds .................................................................. 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ............................................................................................................... 118 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual (GAAP Basis) – Community Redevelopment Agency Special Revenue Fund ....... 121 Combining Statement of Net Position – Nonmajor Enterprise Funds ....................................................... 124 Combining Statement of Revenues, Expenses, and Changes in Net Position - Nonmajor Enterprise Funds...................................................................................................................... 125 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ....................................................... 126 Combining Statement of Net Position – Internal Service Funds ............................................................... 130 iii City of Clearwater, Florida Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2018 TABLE OF CONTENTS (Continued) Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds ................................................................................................................................. 131 Combining Statement of Cash Flows – Internal Service Funds ......................................................................... 132 Combining Statement of Fiduciary Net Position – Fiduciary Funds ................................................................... 136 Combining Statement of Changes in Fiduciary Net Position – Fiduciary Funds ............................................... 137 Statement of Changes in Assets and Liabilities – Agency Fund ........................................................................ 138 STATISTICAL SECTION: Introduction ............................................................................................................................................ 139 Schedule 1 Net Position by Component .................................................................................................................. 141 Schedule 2 Changes in Net Position ....................................................................................................................... 142 Schedule 2a Program Revenues by Function/Program ............................................................................................ 145 Schedule 3 Fund Balances of Governmental Funds ............................................................................................... 146 Schedule 4 Changes in Fund Balances of Governmental Funds ........................................................................... 147 Schedule 5 Assessed Value and Estimated Actual Value of Taxable Property .................................................... 148 Schedule 6 Direct and Overlapping Property Tax Rates ........................................................................................ 149 Schedule 7 Property Tax Levies and Collections .................................................................................................... 150 Schedule 8a Principal Real Property Taxpayers ....................................................................................................... 151 Schedule 8b Principal Personal Property Taxpayers ................................................................................................ 152 Schedule 9 Ratios of Outstanding Debt by Type .................................................................................................... 153 Schedule 10 Ratios of General Bonded Debt Outstanding ....................................................................................... 154 Schedule 11 Direct and Overlapping Governmental Activities Debt......................................................................... 155 Schedule 12 Legal Debt Margin Information ............................................................................................................. 156 Schedule 13 Pledged-Revenue Coverage ................................................................................................................ 157 Schedule 14 Demographic and Economic Statistics ................................................................................................. 159 Schedule 15 Principal Employers .............................................................................................................................. 160 Schedule 16 Full-time Equivalent City Government Employees by Function/Program ........................................... 161 Schedule 17 Operating Indicators by Function/Program .......................................................................................... 162 Schedule 18 Capital Asset Statistics by Function/Program ...................................................................................... 163 OTHER INFORMATION: Continuing Disclosure – Gas System Revenue Refunding Bonds, Series 2013 and 2014 ........................................ 166 Continuing Disclosure – Water & Sewer Revenue Refunding Bonds, Series 2003, 2009B, 2011, 2014, 2017 and 2017B; and Revenue Bonds Series 2009A ........................................................................................ 171 Continuing Disclosure – Stormwater System Revenue Refunding Bonds, Series 2012, 2013 and 2014 .................. 174 Fire Services Program ................................................................................................................................................... 175 SINGLE AUDIT / GRANTS COMPLIANCE SECTION: Report of Independent Auditor 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 ................................................................................................................................................ 179 Report of Independent Auditor on Compliance for Each Major Federal Program and State Financial Assistance Project, and on Internal Control over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General .............................................................................................. 181 Schedule of Expenditures of Federal Awards and State Financial Assistance Projects ............................................ 183 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects .............................. 185 Schedule of Findings and Questioned Costs ................................................................................................................ 187 Corrective Action Plan.................................................................................................................................................... 190 Independent Auditor’s Management Letter ................................................................................................................... 191 Report of Independent Accountant on Compliance with Local Government Investment Policies .............................. 193 iv This Page Intentionally Left Blank April 19, 2019 The Honorable Mayor, Councilmembers, and Citizens of the City of Clearwater: The City of Clearwater Charter (Section 2.01(c)3), Florida Statutes, and various covenants relating to debt and pension obligations of the City require an annual audit of the financial statements of all funds of the City by a firm of licensed certified public accountants. These statements must be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS). Pursuant to these requirements we hereby issue the comprehensive annual financial report of the City of Clearwater for the fiscal year ended September 30, 2018. This report consists of management’s representations concerning the finances of the City. 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 City has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’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. Cherry Bekaert LLP, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2018, 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 that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended September 30, 2018, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of the report. The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal and state grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal and state awards. These reports are in the Single Audit section of this report. v vi GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management’s Discussion and Analysis report (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. Profile of the City of Clearwater, Florida Clearwater is located on the Pinellas Peninsula on Florida’s west coast. It is directly located on the Gulf of Mexico, 20 miles west of Tampa and 20 miles north of St. Petersburg. Clearwater is the county seat of Pinellas County and one of the largest cities in the Tampa Bay area. The Clearwater area offers a semitropical climate and 28 miles of beautiful beaches. Consequently, tourism is an important component of the economy. In addition to tourism, Clearwater enjoys a diversity of manufacturing businesses, service industries, high-tech companies, and a large retirement population. The City operates under the council/manager form of government. Policymaking and legislative authority are vested in the City Council, which consists of a mayor and four members elected at large on a non- partisan basis. The City Council is responsible for adopting ordinances, adopting the budget, and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the heads of the City’s departments. The City provides police and fire protection; construction and maintenance of streets, bridges, sidewalks, storm drainage, public parks, and recreation facilities; planning, zoning, subdivision, and building code regulation and enforcement; redevelopment of commercial and residential neighborhoods; supervised recreation programs; public libraries; water supply and distribution; waste water collection, treatment, and disposal; natural gas distribution; solid waste collection and recycling; stormwater management; marina, airpark, downtown boat slips, and public fishing pier operations; and operation of the city-wide parking system. The annual budget serves as the foundation for the City’s financial planning and control. Per the City Code of Ordinances, the City Manager is required to provide to the City Council an operating budget for the ensuing fiscal year, a capital improvement budget, and a five-year capital improvement program, along with an accompanying budget message no later than 60 days prior to the end of the fiscal year. The Council is required to hold public hearings on the budget and to adopt a final operating budget and capital improvement budget no later than September 30, the last day of the City’s fiscal year. The appropriated budget is prepared by fund and by department within fund. After five consecutive years of decline in City taxable property values, approximating 33 percent in total, we have now experienced six consecutive years of increases: 3.3%, 6.0%, 6.6%, 7.5%, 8.3%, and 9.6% increases for January 1, 2013, 2014, 2015, 2016, 2017, and 2018 tax rolls, respectively. Additionally, the Tampa Bay metropolitan area experienced an improvement in the unemployment rate as it decreased from the September 1, 2017 rate of 3.7% to 2.9% as of September 30, 2018. The metro area rate of 2.9% compares favorably to a national rate of 3.7% and a state unemployment rate of 3.3% as of September 30, 2018. Local tourism continues to increase at record rates and contributes to optimism that the area’s economy will continue to improve. The City’s Beach by Design Redevelopment Plan, anchored by Beach Walk, resulted in significant economic redevelopment on Clearwater Beach, and contributed to Clearwater Beach’s recent TripAdvisor 2019 ranking as #1 beach in the United States and #6 in the world. The downtown area is well-poised for similar redevelopment due to investment downtown streetscaping, the Clearwater Harbor Marina, Capitol Theatre, the addition of an apartment complex of 257 high-end units adjacent to downtown’s Prospect Lake Park, and construction currently underway on conversion of a 15-story downtown office tower into 134 luxury apartments and townhomes. Contributing to downtown’s potential for redevelopment is the recent update of the Downtown Plan, North Marina Master Plan, and various Community Redevelopment Agency incentive plans for downtown retail. Finally, the City is embarking on a significant development of the downtown waterfront bluff area, discussed under Major Initiatives below, that is expected to contribute to significant economic redevelopment of the downtown area. vii Long-term Financial Planning Financial planning continues to be of critical importance to the City in meeting the challenges of both the immediate and foreseeable future. City staff and the City Council annually participate in a Strategic Planning council meeting to review priorities and financial condition in preparation for the annual budget process. This includes a review of current long-term forecasts for the General Fund and major utility funds. Major projects undertaken by the City will continue to have long term financial implications for existing as well as future resources and revenues. The planning and decisions undertaken by the City are always evaluated in the context of the financial burden that will be placed on both current and prospective residents, as well as the potential economic and environmental impacts. The City has a General Fund Financial Sustainability Analysis performed by a rate study consultant at least every two years that provides a ten-year forecast of the General Fund, which is presented to City Council by the consultant. Similar rate studies for the major utility funds are performed at least every five years, and provide similar ten-year forecasts presented to City Council by the rate study consultant. Relevant Financial Policies It is a policy of the City Council to maintain a minimum fund balance in the General Fund equal to eight and one-half percent (8.5%) of the subsequent year’s budgeted expenditures to meet unanticipated financial needs. Per Council policy, excess funds may be appropriated by the City Council for specific capital improvement projects or other one-time needs. It is a policy of the City Council that all enterprise fund operations shall be self-supporting. Council policy requires a review of rate schedules every five years, at a minimum, to help ensure that enterprise funds are self-supporting. Additionally, Council policy requires that unrestricted fund balances of the utility enterprise funds be maintained at a level equivalent to the greater of six months of operation and maintenance expenses, or other minimum reserve levels indicated in the current rate study for the utility enterprise fund. The minimum reserve level for non-utility enterprise funds is three months of operation and maintenance expenses. Major Initiatives The City continues to proactively fund capital projects to support the City’s five utility operations, which consist of Water and Sewer, Stormwater, Solid Waste, Recycling, and Gas Utility operations. A total of $56.0 million is budgeted for utility capital projects for fiscal 2019 with a total of $331.8 million budgeted over the next six years. In the Spring of 2014, the City sponsored an Urban Land Institute (ULI) Advisory Services Panel to provide strategic advice about the revitalization of the downtown area. A major initiative resulting from the ULI recommendations is “Imagine Clearwater,” a multi-phase redevelopment plan for the downtown waterfront bluff. Phase 1 of the plan seeks to implement key investments north of Cleveland Street and along the waterfront to spark change along Osceola Avenue and into downtown. The plan will create a dynamic new open space from the waterfront to the downtown, activated by new uses and captivating elements that serve a broad pool of users with the flexibility to accommodate a great variety of activities, including passive and active recreation, to promote year-round enjoyment. Phase 2 builds upon the success of Phase 1, bringing redevelopment south of Cleveland Street with the activation of additional key City investments. The current Phase 1 design phase is expected to take up to a year, with construction planned to begin during calendar year 2019. ix City of Clearwater Organizational Chart Deputy City Manager Assistant City Manager Customer Service Police Department Finance & Budget Planning & Development Economic Development & Housing Gas System Internal Audit Information Technology Solid Waste / General Support Services Marine & Aviation Public Communications Library Fire Department Engineering Parks & Recreation Official Records & Legislative Services Human Resources Public Utilities Citizens of Clearwater City Council City Attorney Emergency Management City Manager CRA Operations x Report of Independent Auditor To the Honorable Mayor and City Council Members City of Clearwater, Florida Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the “City”) as of and for the year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. We have also audited the financial statements of each of the City’s nonmajor governmental funds, nonmajor enterprise funds, internal service, and fiduciary funds presented as supplementary information in the accompanying combining and individual fund statements as of and for the year ended September 30, 2018, 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 opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2018, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparisons for the general fund and the special development fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each of the nonmajor governmental funds, nonmajor enterprise funds, internal service and fiduciary funds of the City as of September 30, 2018, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Emphasis of a Matter Change in Accounting Principle As discussed in Note IV.I., to the financial statements, the City adopted the provisions of Governmental Accounting Standards Board (“GASB”) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions effective October 1, 2017. Adoption of the new accounting guidance resulted in a restatement of beginning net position. Our opinions are not modified with respect to this matter. Change in Accounting Principle As discussed in Note I.E., to the financial statements, the City adopted the provisions of GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period effective October 1, 2017. Adoption of new accounting guidance resulted in interest to not be capitalized for the fiscal year ended September 30, 2018—whereas approximately $343,000 of interest expense was capitalized in business-type activities for the fiscal year ended September 30, 2017. Our opinions are not modified with respect to this matter. Change in Estimate Effected by a Change in Accounting Principle As discussed in Notes III.C. and IV.J., to the financial statements, the City implemented a change in accounting estimate over the depreciation method used by the City. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information schedules - Pension Trust Funds and Other Postemployment Benefits, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GASB, 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. 2 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, budgetary comparison for the community redevelopment agency special revenue fund on page 121, and other information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards and state financial assistance projects, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and Chapter 10.550, Rules of the Auditor General of the State of Florida, is also presented for purposes of additional analysis and is not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance projects and the budgetary comparison for the community redevelopment agency special revenue fund are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the 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 projects and the budgetary comparison for the community redevelopment agency special revenue fund are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory, statistical, and other information sections, as listed in the table of contents, 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 19, 2019 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Tampa, Florida April 19, 2019 3 4 This Page Intentionally Left Blank 5 Management’s Discussion and Analysis This Management’s Discussion and Analysis report provides the reader with a narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2018. Management’s Discussion and Analysis (MD&A) should be read in conjunction with the City’s Transmittal Letter, which begins on page v of this report. Financial Highlights  The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2018 by $958.7 million (net position). Of this amount, $251.6 million (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.  The City’s total net position increased by $19.2 million, or 2.0%, from the prior year’s net position, as restated. Net position for governmental activities increased by $3.3 million, or 0.71%, while the business-type net position increased by $15.9 million, or 3.3%.  Governmental net position increased $3.3 million in fiscal 2018, versus an increase of $17.9 million in fiscal 2017. An increase of $22.0 million in governmental program expenses, primarily in the general government, transportation, and culture and recreation programs, offset by an increase in governmental program revenues of $4.6 million, resulted in an increase in net program expenses of $17.4 million. General revenues and transfers increased $2.8 million. Total general revenues for governmental activities increased by $5.3 million, or 5.6%, primarily due to a $3.8 million increase in property taxes, a $1.0 million increase in sales taxes, and a $1.2 million increase in utility, communications services, and other taxes, offset by a decrease of $835 thousand in investment earnings due to a reduction in market values of the City’s investment portfolio. Transfers from business-type activities decreased $2.5 million.  Business-type net position increased $15.9 million in fiscal 2018, versus a $22.8 million increase in fiscal 2017. Net revenue from business-type activities, before investment earnings and transfers, decreased $8.2 million, or 23.7%, as the result of an increase in charges for services of $7.4 million and an increase in grants and contributions of $221 thousand, in addition to an increase in program expenses of $15.8 million. The most significant increases in charges for services were in the Water & Sewer Utility ($2.5 million) due to rate increases of 6.25% and the Gas Utility ($4.5 million) due to fluctuating commodity costs and no change in rates. General revenues decreased $1.1 million as the result of a decrease in investment earnings. Transfers to governmental activities decreased $2.5 million.  At September 30, 2018, the City’s governmental funds reported combined ending fund balances of $117.9 million, an increase of $1.4 million, or 1.2%, in comparison with the prior year. Of this amount, $27.2 million (or 23.1%) is available for spending at the government’s discretion (unassigned fund balance).  At September 30, 2018, unrestricted fund balance (the total of the committed, assigned and unassigned components of fund balance) for the general fund was $27.6 million, or 22.0% of total fiscal 2018 general fund expenditures.  Total outstanding long-term liabilities decreased $5.8 million from the prior year, primarily due to a reduction in bonded debt in the amount of $10.5 million, a net increase in lease purchase contracts of $4.0 million, an increase in the liability for compensated absences of $196 thousand, an increase in the liability for other postemployment benefits of $622 thousand, and a decrease in claims payable of $109 thousand. Overview of the Financial Statements This discussion and analysis (MD&A) is intended to serve as an introduction to the City of Clearwater’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial 6 statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are the statement of net position and the statement of activities. These statements report information about the City as a whole using accounting methods similar to those used by private-sector businesses. Emphasis is placed on the net position of governmental activities and business-type activities, and the change in net position. Governmental activities are principally supported by taxes and intergovernmental revenues. Governmental activities include most of the City’s basic services, including police, fire, public works, parks and recreation, and general administration. Business-type activities are intended to recover all or a significant portion of their costs through user fees and charges. The City’s water and sewer system, stormwater system, gas system, solid waste and recycling, marine, aviation, Clearwater Harbor Marina, and parking system operations are reported as business-type activities.  The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator as to whether the financial position of the City is improving or deteriorating. Net position is reported in three major categories: 1) net investment in capital assets; 2) restricted; and 3) unrestricted.  The statement of activities presents information showing how the City’s net position changed as a result of the year’s activities. All changes in net position are recorded in the period in which the underlying event takes place, which may differ from the period in which cash is received or disbursed. The Statement of Activities displays the expense of the City’s various programs net of related revenues, as well as a separate presentation of revenues available for general purposes. The government-wide financial statements include not only the City of Clearwater itself but also the Clearwater Redevelopment Agency (CRA). The CRA, though legally separate, is reported as part of the primary government as a blended component unit because the City Council serves as the CRA’s governing board and City management has operational responsibility for the CRA. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements provide detailed information about the City’s major funds – not the City as a whole. Fund accounting helps to ensure and demonstrate compliance with finance-related legal requirements. Based on restrictions on the use of monies, the City has established many funds that account for the multitude of services provided to residents. These fund financial statements focus on the City’s most significant funds: governmental, proprietary, and fiduciary. Governmental funds. Governmental funds are used to report most of the City’s basic services. These funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. The funds focus on the inflows and outflows of current resources and the balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains ten individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General, Special Development, and Capital Improvement funds, which are considered to be major funds. Data from the other seven governmental funds are combined into a single aggregated columnar presentation. Individual fund data for each of these nonmajor governmental funds is provided in Combining and Individual Fund Statements and Schedules section of this report. 7 Annual appropriated budgets are adopted for the General Fund, the Special Development Special Revenue Fund, and the Community Redevelopment Agency Special Revenue Fund. Budgetary comparison statements and/or schedules have been provided for these funds to demonstrate budgetary compliance. The basic governmental fund financial statements can be found on pages 22-27 of this report. Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the fiscal activities related to water and sewer, gas, solid waste & recycling and stormwater utilities, along with marine, aviation, parking system, and Clearwater Harbor Marina downtown boat slip operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for the City’s building maintenance, custodial services, self- insurance program, risk management program, employee group insurance, vehicle acquisition and maintenance, and various support activities including data processing, telecommunications, and postal services. All of the City’s internal service funds predominantly benefit governmental activities and consequently have been aggregated and included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Gas Utility, Solid Waste & Recycling Utility, and Stormwater Utility enterprise funds, which are considered to be major funds of the City. The remaining four non-major enterprise funds are combined into a single aggregated presentation in the proprietary fund financial statements. Similarly, governmental activity internal service funds are aggregated into a single presentation. Individual fund data for the non-major enterprise funds and the internal service funds is provided in the form of combining statements in the supplementary information section of this report. The basic proprietary fund financial statements can be found on pages 28-39 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of the fiduciary funds are not available to support the City’s own programs. The accounting used for fiduciary funds is similar to proprietary funds. The City of Clearwater maintains two different types of fiduciary funds. Pension trust funds are used to report resources held in trust for retirees and beneficiaries covered by the City’s pension plans. An agency fund is used to report resources held by the City in a custodial capacity for individuals, private organizations and other governments, such as the Clearwater Downtown Development Board. The fiduciary fund statements can be found on pages 40-41 of this report. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential for a full understanding of the information provided in the government-wide and fund financial statements, including the City’s progress in funding its obligations to provide pension benefits and other post-employment benefits to its employees. The notes to the financial statements can be found on pages 42-104 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligations to provide pension benefits and other post-employment benefits to its employees. Required supplementary information can be found on pages 105-111 of this report. The combining statements referred to earlier in connection with non-major governmental funds, non-major enterprise funds, and internal service funds, are presented immediately following the required supplementary information. Combining and individual fund statements can be found on pages 116-138 of this report. 8 Government-Wide Financial Analysis The total net position of the City increased in both fiscal 2018 and fiscal 2017. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities by $958.7 million at the close of the fiscal year ended September 30, 2018. This represents an increase of $19.2 million from the September 30, 2017 total net position of $939.5 million, as restated. The City reports positive balances in all three categories of net position, both for the government as a whole as well as for its separate governmental and business-type activities, for both the current year and the prior year, as indicated in the following table: (Restated) (Restated) (Restated) 2018 2017 2018 2017 2018 2017 Assets Current and other assets 290,370,845$ 258,571,971$ 291,290,293$ 265,815,486$ 581,661,138$ 524,387,457$ Capital assets 288,091,527 300,089,363 422,314,479 434,914,983 710,406,006 735,004,346 Total assets 578,462,372 558,661,334 713,604,772 700,730,469 1,292,067,144 1,259,391,803 Deferred Outflows of Resources 6,208,613 3,243,712 14,400,606 14,806,580 20,609,219 18,050,292 Liabilities Current and other liabilities 14,672,641 11,695,301 22,084,705 19,552,496 36,757,346 31,247,797 Long-term debt outstanding: Due within one year 16,934,771 15,678,212 11,080,872 10,579,272 28,015,643 26,257,484 Due in more than one year 52,828,862 50,526,294 183,999,852 193,872,083 236,828,714 244,398,377 Total liabilities 84,436,274 77,899,807 217,165,429 224,003,851 301,601,703 301,903,658 Deferred Inflows of Resources 40,558,673 27,590,333 11,848,451 8,431,935 52,407,124 36,022,268 Net position Net investment in capital assets 256,608,202 271,834,091 250,409,877 254,503,208 507,018,079 526,337,299 Restricted 145,996,231 119,002,793 54,034,436 47,946,129 200,030,667 166,948,922 Unrestricted 57,071,605 65,578,022 194,547,185 180,651,926 251,618,790 246,229,948 Total net position 459,676,038$ 456,414,906$ 498,991,498$ 483,101,263$ 958,667,536$ 939,516,169$ Governmental Activities Business-type Activities Total A large portion of the City’s net position (52.9%) represents its net investment in capital assets (e.g., land, infrastructure, land improvements, buildings, and equipment, less any related outstanding debt used to acquire those assets). The City uses these capital assets to provide services to citizens, and consequently these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves will not be used to liquidate these liabilities. There was a decrease of $15.2 million (5.6%) in net investment in capital assets for governmental activities versus the previous year. The decrease was due to a decrease in related revenue bond debt of $741 thousand and a net increase of $3.9 million in capital lease purchase contracts, plus a net decrease of $12.0 million in governmental capital assets for the current fiscal year. The decrease in governmental capital assets of $12.0 million resulted from capital asset additions of $19.7 million offset by depreciation expense of $30.7 million, net capital asset retirements of $1.0 million, and net transfers from business-type activities of $7 thousand. Net investment in capital assets for business-type activities decreased by $4.1 million, or 1.6%, due to a net decrease in business-type capital assets of $12.6 million consisting of $30.7 million of net capital asset additions, $43.3 million in 9 current year depreciation expense, net capital asset retirements of $25 thousand, and transfers to governmental activities of $7 thousand, plus a decrease of $8.5 million in related debt, net of unspent bond proceeds. An additional portion of the City’s net position (20.9%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($251.6 million or 26.2%) may be used to meet the government’s ongoing obligations to citizens and creditors. Changes in Net Position The following table reflects the changes in net position for the years ended September 30, 2018, and September 30, 2017: 2018 2017 2018 2017 2018 2017 Revenues Program revenues: Charges for services 44,768,013$ 43,832,862$ 185,595,134$ 178,247,501$ 230,363,147$ 222,080,363$ Operating grants and contributions 7,456,355 7,012,218 82,821 82,541 7,539,176 7,094,759 Capital grants and contributions 7,146,133 3,893,460 3,785,420 3,564,204 10,931,553 7,457,664 General revenues: Property taxes 50,609,855 46,852,628 - - 50,609,855 46,852,628 Sales taxes 19,014,835 18,008,997 - - 19,014,835 18,008,997 Utility taxes 15,544,160 14,834,609 - - 15,544,160 14,834,609 Communications services taxes 4,721,390 4,511,892 - - 4,721,390 4,511,892 Other taxes 8,727,550 8,395,207 - - 8,727,550 8,395,207 Other (35,930) 734,965 (350,107) 782,396 (386,037) 1,517,361 Total revenues 157,952,361 148,076,838 189,113,268 182,676,642 347,065,629 330,753,480 Expenses General Government 18,322,909 14,876,267 - - 18,322,909 14,876,267 Public Safety 67,737,092 66,794,715 - - 67,737,092 66,794,715 Physical Environment 4,054,997 3,992,892 - - 4,054,997 3,992,892 Transportation 17,019,774 14,338,591 - - 17,019,774 14,338,591 Economic Environment 6,205,041 5,304,679 - - 6,205,041 5,304,679 Human Services 462,569 455,615 - - 462,569 455,615 Culture and Recreation 50,484,936 36,497,439 - - 50,484,936 36,497,439 Interest on Long-term Debt 744,723 747,990 - - 744,723 747,990 Water and Sewer Utility - - 82,197,278 73,252,799 82,197,278 73,252,799 Gas Utility - - 35,568,928 30,716,158 35,568,928 30,716,158 Solid Waste Utility - - 17,053,411 17,625,829 17,053,411 17,625,829 Stormwater Utility - - 14,550,070 13,147,863 14,550,070 13,147,863 Recycling Utility - - 3,041,556 2,864,457 3,041,556 2,864,457 Other - - 10,470,978 9,453,186 10,470,978 9,453,186 Total expenses 165,032,041 143,008,188 162,882,221 147,060,292 327,914,262 290,068,480 (7,079,680) 5,068,650 26,231,047 35,616,350 19,151,367 40,685,000 Transfers 10,340,812 12,830,669 (10,340,812) (12,830,669) - - Increase in net position 3,261,132 17,899,319 15,890,235 22,785,681 19,151,367 40,685,000 Net position - beginning (as previously reported) 456,414,906 445,532,155 483,101,263 463,389,565 939,516,169 908,921,720 Prior period restatements (See Note IV.I.) - (7,016,568) - (3,073,983) - (10,090,551) Net position - beginning (restated) 456,414,906 438,515,587 483,101,263 460,315,582 939,516,169 898,831,169 Total net position - ending 459,676,038$ 456,414,906$ 498,991,498$ 483,101,263$ 958,667,536$ 939,516,169$ City of Clearwater, Florida - Changes in Net Position transfers Governmental Activities Business-type Activities Totals Increase in net position before 10 Governmental Activities Net position of governmental activities increased by $3.3 million from to $456.4 million, as restated, to $459.7 million as of September 30, 2018. This represents a 0.71% increase in net position for governmental activities. Total expenses for governmental activities increased by $22.0 million, or 15.4%, versus the prior year. The most significant increases were in the general government program ($3.4 million), the culture and recreation program ($14.0 million), and the transportation program ($2.7 million). Total program revenues for governmental activities increased by $4.6 million, or 8.9%, versus the prior year. This increase was due to a $935 thousand increase in charges for services, an increase in operating grants and contributions of $444 thousand, and an increase of $3.3 million in capital grants and contributions, primarily in the transportation and culture and recreation programs. Total general revenues for governmental activities increased by $5.3 million, or 5.6%, primarily due to a $3.8 million increase in property taxes, a $1.0 million increase in sales taxes, and a $1.3 million increase in utility, communications services, and other taxes, offset by a decrease of $835 thousand in investment earnings due to a reduction in market values of the City’s investment portfolio. Transfers from business-type activities decreased $2.5 million. The cost of all governmental activities this year was $165.0 million. This reflects an increase of $22.0 million, or 15.4%, from the fiscal 2017 total of $143.0 million. However, as shown on the Statement of Activities, the amount that the City’s taxpayers ultimately financed for fiscal 2018 activities totaled $105.7 million, because some of the cost was paid for by those who directly benefited from the programs ($44.8 million) or by other governments and organizations that subsidized certain programs with grants and contributions ($14.6 million). This total of $105.7 million is $17.4 million, or 19.7%, greater than the fiscal 2017 amount financed from general revenues. $0 $10 $20 $30 $40 $50 $60 $70 Millions Expenses and Program Revenues - Governmental Activities For the Year Ended September 30, 2018 Expenses Revenues General Government PublicSafety Physical Transportation Economic Environment Human Culture and Recreation Interest on Long-term Debt 11 Business-type Activities Net position for business-type activities increased by $15.9 million from $483.1 million as restated at September 30, 2017, to $499.0 million as of September 30, 2018. This represents a 3.3% increase in net position for business-type activities. Net revenue from business-type activities, before investment earnings and transfers, decreased from $34.8 million for the prior year to $26.6 million for fiscal 2018. This $8.2 million, or 23.7%, decrease was primarily the result of an increase in charges for services of $7.4 million and an increase in grants and contributions of $221 thousand, in addition to an increase in program expenses of $15.8 million. Total program revenues for business-type activities increased by $7.6 million, or 4.2%, to $189.5 million versus the prior year total of $181.9 million, due primarily to an increase of $7.3 million (4.1%) in charges for services. In the Water & Sewer Utility, charges for services increased as a result of a 6.25% rate increase effective October 1, 2017, and in the Gas Utility due to fluctuating commodity costs and no change in rates, as well as additional installations. Total expenses for business-type activities increased by $15.8 million, or 10.8%, from $147.1 million in fiscal 2017 to $162.9 million for fiscal 2018. The majority of this increase is in the Water & Sewer Utility ($8.9 million), the Stormwater Utility ($1.4 million), and the Gas Utility $4.9 million. Transfers to governmental activities decreased $2.5 million, or 19.4%. Charges for services 28.32% Operating grants and contributions 4.72% Capital grants and contributions 4.52% Property taxes 32.01% Sales taxes 12.03% Utility taxes 9.83% Communications services taxes 2.99% Other taxes 5.52% Other revenues .06% Revenues by Sources - Governmental Activities For the Year Ended September 30, 2018 12 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 Water and Sewer Utility Gas Utility Solid Waste Utility Stormwater Utility Recycling Other Expenses and Program Revenue - Business-type Activities For the Year Ended September 30, 2018 Expenses Revenues Charges for services 97.96% Operating grants and contributions .04% Capital grants and contributions 2.00% Revenues by Source - Business-type Activities For the Year Ended September 30, 2018 13 Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. The City reports the General Fund, Special Development Fund, and Capital Improvement Fund as major governmental funds. The City’s governmental funds for the year ended September 30, 2018, reflect a combined fund balance of $117.9 million versus $116.5 million for the prior year, an increase of $1.4 million. A total of $27.2 million, or 23.05%, represents unassigned fund balance available for spending at the government’s discretion. The remainder of the fund balance is classified as assigned ($3.5 million or 2.95%) to indicate that it is intended to be used for specific purposes supported by management’s intent; committed ($19.8 million or 16.82%) to indicate that it can be used only for the specific purposes determined by a formal vote of the City Council; restricted ($67.3 million or 57.11%) to indicate that it can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation; or nonspendable ($76 thousand or 0.07%) to indicate that it cannot be spent or is legally or contractually required to remain intact. The General Fund is the chief operating fund of the City. At September 30, 2018, unassigned fund balance of the General Fund totaled $27.2 million, with the remaining $512 thousand in fund balance classified as nonspendable or assigned. As a measure of the general fund’s liquidity it is useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 21.6% of total general fund expenditures (GAAP basis before transfers) for the current fiscal year. The fund balance of the Special Development Fund decreased from $12.9 million to $4.8 million, a decrease of $8.1 million or 63.0%, during the current fiscal year versus an increase of $512 thousand for fiscal 2017. Total revenues decreased by $179 thousand, caused by an increase in taxes of $831 thousand, offset by a decrease in licenses, permits and fees of $623 thousand and a decrease in investment earnings of $387 thousand. Transfers in decreased by $22 thousand, while transfers out increased by $8.4 million primarily due to an increase in Penny for Pinellas revenues transferred to the Capital Improvement Fund to fund projects in the Capital Improvement Plan. The fund balance for the Capital Improvement Fund increased from $51.3 million to $59.9 million during the current fiscal year. This increase of $8.6 million is primarily the result of current year capital project funding received from other funds in excess of year capital project expenditures. This is typical volatility for the Capital Improvement Fund due to timing differences between project funding and project spending. The fund balances for Other (non-major) Governmental Funds posted an increase of $1.8 million (from $23.7 million to $25.5 million) during the current fiscal year. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The City reports the Water and Sewer Utility Fund, the Gas Utility Fund, the Solid Waste & Recycling Utility Fund, and the Stormwater Utility Fund as major funds. The Water and Sewer Utility Fund realized a $178 thousand decrease in net position versus a $4.9 million increase for the prior year. Operating revenues increased by $2.5 million, or 3.0%, while operating expenses increased $10.5 million, or 15.9%. This resulted in a net decrease in operating income of $8.1 from $15.3 million in fiscal 2017 to $7.2 million in 2018. Additionally, capital grants and contributions increased by $1.7 million, or 164.5%, and investment earnings decreased by $638 thousand (166.8%). The increase in operating revenues was primarily the result of a 6.25% rate increase effective October 1, 2017, offset by a decrease in other revenues due to $2.4 million insurance proceeds received from tropical storm damage in fiscal year 2017. The increase in capital grants and contributions was primarily the result of grant revenues received from the Department of Environmental Protection and the Southwest Florida Water 14 Management District for various capital projects, as well as increased contributions from developers. The increase in operating expenses was primarily due to additional depreciation expense of $17.5 million recognized in fiscal 2018 due to a change in accounting estimate (See Note IV.J.), offset by decreased repair and maintenance costs and rental costs incurred by damages caused by Tropical Storm Hermine in fiscal year 2017. Operating expenses also decreased as a result of a decrease in water purchased from Pinellas County due to Reverse Osmosis Plant #2 operating closer to capacity in fiscal year 2018. The Gas Utility Fund realized an increase of $6.4 million in net position versus a $5.4 million increase for the prior year. Operating revenues increased by $4.5 million, or 11.1%, from the prior year, and operating expenses also increased by $5.0 million (16.5%). This resulted in a net decrease in operating income of $492 thousand from $10.2 million in 2017 to $9.7 million in 2018. Operating revenues increased due to additional installations. The increase in operating expenses was primarily due to increased fuel purchases for resale in the amount of $1.0 million, increased advertising costs of $1.1 million due to promotional fees paid to builders as an incentive to build with gas, as well as additional depreciation expense of $2.5 million recognized in fiscal 2018 due to a change in accounting estimate (See Note IV.J.). Transfers to other funds decreased by $1.6 million, or 36.4%, primarily due to the decreased dividend to the General Fund computed on the fiscal 2017 change in net position. The Solid Waste & Recycling Utility Fund realized a $3.4 million increase in net position versus a $3.2 increase in the prior year. Operating revenues increased by $512 thousand, or 2.0%, while operating expenses increased by $19 thousand (0.09%), resulting in an increase of $493 thousand in operating income. The increase in operating revenues was primarily due to a rate increase of 3.75% effective October 1, 2017. Additional depreciation expense of $153 thousand was recognized in fiscal 2018 due to a change in accounting estimate (See Note IV.J.). The Stormwater Utility Fund realized an increase in net position of $3.8 million versus a prior year increase of $6.7 million. Operating revenues decreased by $115 thousand, or 0.62%, and operating expenses increased $1.5 million, or 12.2%, resulting in a decrease of $1.6 million in operating income. There was a rate increase of 0.5% effective October 1, 2017. Operating expenses increased primarily due to additional depreciation expense of $2.6 million recognized in fiscal 2018 due to a change in accounting estimate (See Note IV.J.), offset by a decrease in interfund administration charges of $303 thousand as a result of decreased billings to departments for engineering staff charges, a decrease of $253 thousand in professional fees as a result of decreased project activity, and a reduction in repairs and maintenance due to decreased project activity in stormwater repair projects. There was also a decrease in capital grants and contributions of $1.6 million (63.6%) as a result of decreased contributions from the Southwest Florida Water Management District due to completion of the Mango and Magnolia drainage projects. Unrestricted net position and changes in net position of the proprietary funds for fiscal years 2018 and 2017: (Restated) Fund 2018 2017 2018 2017 Water and Sewer Utility 67,936,966$ 54,697,148$ (178,160)$ 4,919,150$ Gas Utility 36,320,368 41,054,890 6,410,549 5,441,658 Solid Waste & Recycling Utility 32,600,009 33,753,543 3,409,843 3,230,973 Stormwater Utility 36,783,576 33,631,476 3,787,834 6,661,074 Other funds 18,354,734 16,179,954 1,243,552 2,305,071 Totals 191,995,653$ 179,317,011$ 14,673,618$ 22,557,926$ Unrestricted Net Position Change in Net Position 15 General Fund Budgetary Highlights The final amended budget for General Fund expenditures reflected a net increase of $2,156,489, or 1.7%, from the original budget. Key elements of this increase were as follows:  First Quarter Budget Amendments included an increase of $440,560 to fund merit increases for CWA employees; an increase of $50,000 to fund complete streets concept planning; an increase of $1,500,000 for the capital funding agreement with Ruth Eckerd Hall; an increase of $501,070 to fund City Manager approved merit increases for SAMP employees; an increase of $1,474 to for employee recognition in various departments for the safety award; and a decrease of $14,560 in Parks and Recreation variable garage services.  Mid-Year Budget Amendments included a decrease of $30,458 in Parks and Recreation garage services.  Third Quarter Budget Amendments included an increase of $30,000 in the CRA Administration to fund leave payouts of former employees; an increase of $336 in Engineering employee recognition for the safety award; a decrease of $201,656 to the Fire Supplemental Pension Plan; an increase of $163,100 in Fire Department overtime; an increase of $20,000 in Fire Department operating supplies; a decrease of $295,000 in Parks and Recreation salaries; an increase of $200,000 in Planning and Development for construction inspection services; an increase of $123,623 to the Police Supplemental Pension Plan; a decrease of $400,000 in Police Department salaries and operating expenses; an increase of $38,000 in professional services for MSB and City Hall security services; and an increase of $30,000 in legal settlements. Final budgeted revenues reflect a net increase of $1,727,657, or 1.4%, from the original budget primarily due to the following:  Third Quarter Budget Amendments included an increase of $254,990 to ad valorem property tax revenue; an increase of $400,000 to water utility taxes; a decrease of $100,000 to electric franchise fees; an increase of $700,000 to building permit revenues; a decrease of $78,033 to supplemental pension revenue; an increase of $41,600 to county fire reimbursement revenue; an increase of $40,500 to fire inspection fees; a decrease of $134,000 to various parks and recreation fees; a decrease of $93,150 to Pier 60 revenues; a decrease of $25,000 to lot mowing/clearing revenues; an increase of $280,000 to red light camera fine revenues; an increase of $335,000 to beach rental revenues; a decrease of $48,250 to CMA rental revenue; an increase of $30,000 to insurance proceeds from traffic devices; an increase of $23,000 to other general revenue; an increase of $20,000 to fire donations; and an increase of $81,000 to miscellaneous fire revenues. Final budgeted “transfers in” from other funds reflect a net increase of $300,331, or 2.8%, from the original budget primarily due to:  A transfer of $1,810 from the Central Insurance Fund for safety award funding; and  A transfer of $298,521 from the Gas Utility Fund for an increase to the gas dividend. Final budgeted “transfers out” reflect an increase of $5,901,132 or 77.3%, from the original budget primarily due to:  A transfer of $200,000 to the Capital Improvement Fund for the Police Equipment Replacement project;  A transfer of $200,000 to the Capital Improvement Fund for the Police Command Bus Refurbishment project;  A transfer of $295,000 to the Capital Improvement Fund for the Eddie C. Moore Softball Complex Renovation project;  A transfer of $45,018 to the Garage Fund for the purchase of Parks and Recreation vehicles;  A transfer of $5,000,000 to the Special Programs Fund for the Clearwater Marine Aquarium Capital Project Agreement; and  A transfer of $161,114 to the Capital Improvement Fund for the Traffic Calming project. Total actual revenues for the General Fund for fiscal 2018 were $1,382,753, or 1.1%, greater than final budgeted revenues. Although most categories posted a surplus of actual revenues versus final budgeted revenues, there was a budget deficit in investment earnings of $320 thousand to reflect an unrealized loss on investments. Fiscal 2018 actual expenditures for the General Fund were $3,965,415 (3.1%) less than final budgeted expenditures, primarily due to budget savings across all City departments for fiscal 2018. 16 Capital Asset and Debt Administration Capital Assets Capital assets include land, buildings and building improvements, improvements other than buildings, machinery and equipment, and infrastructure. The infrastructure asset category includes long-lived capital assets, typically stationary in nature, such as roads, sidewalks, and bridges. At September 30, 2018, the City had investments in capital assets totaling $710,406,006 (net of accumulated depreciation). 2018 2017 2018 2017 2018 2017 Land 87,589$ 87,325$ 31,969$ 31,745$ 119,558$ 119,070$ Buildings 90,316 97,020 36,089 37,900 126,405 134,920 Improvements other than buildings 12,581 18,590 312,838 344,348 325,419 362,938 Machinery and equipment 29,496 26,982 7,935 8,381 37,431 35,363 Infrastructure 53,064 56,932 - - 53,064 56,932 Construction in progress 15,046 13,240 33,483 12,541 48,529 25,781 Total 288,092$ 300,089$ 422,314$ 434,915$ 710,406$ 735,004$ * Net of accumulated depreciation Governmental Activities TotalBusiness-type Activities City of Clearwater, Florida - Capital Assets* (amounts in thousands) Net capital assets for the City’s governmental activities decreased from $300.1 million to $288.1 million, reflecting a decrease of $12.0 million for the current fiscal year. Capital asset additions of $19.7 million were offset by depreciation expense of $30.7 million, including additional depreciation expense of $9.6 million due to a change in accounting estimate (See Note IV.J), net capital asset retirements totaling approximately $1.0 million and net transfers from business-type activities of $7 thousand. Major fiscal 2018 completed governmental capital projects included $3.1 million for the Countryside Fire Station, $455 thousand for the Marina District Boardwalk and Entry Nodes, $216 thousand for expansion of the Barefoot Beach House, and $145 thousand for the restrooms and concession stand at Phillip Jones Park. Net capital assets for the City’s business-type activities decreased from $434.9 million to $422.3 million, reflecting a decrease of $12.6 million for the current fiscal year. Capital asset additions of $30.7 million were offset by depreciation expense of $43.3 million, including additional depreciation expense of $23.2 million due to a change in accounting estimate (See Note IV.J.), net capital asset retirements totaling approximately $25 thousand and net transfers to governmental activities of $7 thousand. Major fiscal 2018 completed business-type capital projects included $1.1 million for Allen’s Creek stormwater improvements, $134 thousand for Reverse Osmosis plant expansions, $101 thousand for sanitary sewer upgrades and improvements, and $52 thousand in Water and Sewer Facilities Upgrades and Improvements. Additional information on the City’s capital assets can be found in Note III (C) on the notes to the financial statements. Long-term debt and other long-term liabilities The City’s total long-term liabilities decreased from $270.7 million (as restated) to $264.8 million, a decrease of $5.8 million or 2.1%. Long-term liabilities for governmental activities increased by $3.6 million, or 5.4%, while long-term liabilities for business-type activities decreased by $9.4 million or 4.6%. Key factors contributing to these changes included: 17  The increase in long-term liabilities for governmental activities is primarily due to an increase in lease purchase contracts of $4.0 million; an increase in compensated absences of $77 thousand; an increase in other postemployment benefits of $363 thousand; a decrease of $109 thousand in claims payable; and a reduction of $741 thousand in bonded debt.  The decrease in long-term liabilities for business-type activities is primarily due to an increase in lease purchase contracts of $9 thousand; an increase in compensated absences of $119 thousand; an increase in other postemployment benefits of $259 thousand; and a reduction of $9.8 million in bonded debt. The City’s bonded debt as of September 30, 2018, consists entirely of revenue bonds (secured solely by specified revenue sources) with no general obligation debt or special assessment debt outstanding. Governmental activities revenue bonds totaled $6.3 million while revenue bonds for business-type activities totaled $183.3 million. The City’s Charter limits indebtedness to 20% of the assessed valuation of non-exempt real estate. The current debt limitation is approximately $2.5 billion, which is significantly in excess of the City’s applicable indebtedness of approximately $193 million at September 30, 2018. Additional information on the City’s long-term debt can be found in Note III (F) of the notes to the financial statements. Economic Factors and Year 2019 Budgets and Rates Factors considered in preparing the City of Clearwater’s budget for fiscal year 2019 included:  An increase of 9.8% in property values, from $10.2 billion to $11.2 billion, including new construction. This is the sixth year of increased valuations that the City has recognized since the recessionary years 2008-2012. City taxable values have fully restored, and are approximately the same as the peak values of 2007.  The approved millage rate of 5.9550 mills for fiscal year 2019 reflects an increase of 0.8 mills from the previous millage of 5.1550 mills. This was the first increase since fiscal year 2010.  A net increase of 0.9 full-time equivalent positions for all City operations to a total of 1833.5 FTE’s. This net increase affected the General Fund. There were no changes to enterprise or internal services funds.  An increase of $150 thousand in the actuarially required contribution to the Employees’ Pension Plan, from $8.65 million, or 10.91% of covered payroll, for fiscal 2018 to $8.8 million, or 10.69% of covered payroll, for fiscal 2019. The approved budget plans for a contribution rate of 13% of covered payroll, which will provide for the actuarially required contribution of 10.69% as well as restore approximately $2.7 million to the credit balance (contributions in excess of the actuarially required amount) to prepare us for future economic challenges.  An increase in employee medical insurance costs of $979,050 to a total of $18.3 million across all City operations. Included in the budget is $1.7 million of health clinic operating costs. Savings in claims costs should continue to offset the cost of the health clinic.  Budgeted Water and Sewer utility revenues for 2019 reflect a 4.00% rate increase effective October 1, 2018, per a rate study adopted in September 2017. Fiscal 2019 budgeted Stormwater utility revenues reflect a 0.5% rate increase effective October 1, 2018, per a rate study adopted in August 2017. Budgeted revenue for the Solid Waste & Recycling Utility reflect an increase of 3.75% effective October 1, 2018 based upon a rate structure that was approved in August 2015. There are no planned rate increases for the Gas Utility. Contacting the City’s Financial Management This financial report is designed to provide a general overview of the City’s finances for all those with an interest in our government and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of Clearwater, Finance Department, 100 South Myrtle Avenue, Clearwater, Florida 33756-5520. 18 This Page Intentionally Left Blank 19 Basic Financial Statements Governmental Business-type Activities Activities Total ASSETS Cash and investments $ 186,411,358 $ 207,106,540 $ 393,517,898 Receivables (net) 9,013,794 15,902,482 24,916,276 Internal balances 948,468 (948,468) - Due from other governments 10,312,474 1,895,548 12,208,022 Prepaid items 1,504,673 413,419 1,918,092 Inventories 498,488 2,661,614 3,160,102 Restricted assets: Cash and investments - 40,614,917 40,614,917 Net pension asset 81,681,590 23,644,241 105,325,831 Capital assets: Land 87,588,999 31,968,620 119,557,619 Buildings 90,315,475 36,088,989 126,404,464 Improvements other than buildings 12,580,851 312,838,094 325,418,945 Machinery and equipment 29,496,156 7,935,335 37,431,491 Infrastructure 53,063,554 - 53,063,554 Construction in progress 15,046,492 33,483,441 48,529,933 Total assets 578,462,372 713,604,772 1,292,067,144 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - bond refunding - 12,584,334 12,584,334 Deferred outflows - pension 6,208,613 1,816,272 8,024,885 Total deferred outflows of resources 6,208,613 14,400,606 20,609,219 LIABILITIES Accounts payable and other current liabilities 9,557,068 10,745,081 20,302,149 Accrued liabilities 3,023,333 897,405 3,920,738 Accrued interest payable 26,922 93,491 120,413 Due to other governments 377,257 - 377,257 Deposits 5,300 92,201 97,501 Unearned revenue and liens 1,682,761 17,487 1,700,248 Payable from restricted assets: Construction contracts payable - 240,150 240,150 Accrued interest payable - 2,161,976 2,161,976 Customers deposits - 7,836,914 7,836,914 Non-current liabilities due within one year: Compensated absences 4,547,586 1,198,488 5,746,074 Capital lease purchases payable 7,740,620 312,384 8,053,004 Revenue bonds payable 760,000 9,570,000 10,330,000 Claims payable 3,886,565 - 3,886,565 Long-term debt and liabilities: Compensated absences 3,864,156 1,018,373 4,882,529 Other postemployment benefits 18,887,201 8,374,927 27,262,128 Capital lease purchases payable 17,470,040 837,533 18,307,573 Revenue bonds payable 5,512,665 173,769,019 179,281,684 Claims payable 7,094,800 - 7,094,800 Total liabilities 84,436,274 217,165,429 301,601,703 DEFERRED INFLOWS OF RESOURCES Deferred inflows - property taxes 80,514 - 80,514 Deferred inflows - code enforcement liens 284,750 - 284,750 Deferred inflows - pension 39,595,312 11,583,243 51,178,555 Deferred inflows - other postemployment benefits 598,097 265,208 863,305 Total deferred inflows of resources 40,558,673 11,848,451 52,407,124 NET POSITION Net investment in capital assets 256,608,202 250,409,877 507,018,079 Restricted for: Capital projects 50,682,163 - 50,682,163 Debt service 683,053 16,615,678 17,298,731 Renewal and replacement - 10,811,133 10,811,133 Grant programs 12,949,425 - 12,949,425 Impact fees - 2,949,066 2,949,066 Stormwater system fees - 14,318 14,318 Pensions 81,681,590 23,644,241 105,325,831 Unrestricted 57,071,605 194,547,185 251,618,790 Total net position $ 459,676,038 $ 498,991,498 $ 958,667,536 The notes to the financial statements are an integral part of this statement. Primary Government City of Clearwater, Florida Statement of Net Position September 30, 2018 20 Program RevenuesOperating Primary Government Charges for Grants and Capital Grants & Governmental Business-TypeFunctions/Programs Expenses Services Contributions Contributions Activities Activities TotalPrimary government:Governmental activities:General government 18,322,909$ 24,390,892$ 16$ 6,626$ 6,074,625$ -$ 6,074,625$ Public safety 67,737,092 11,317,528 3,021,864 115,224 (53,282,476) - (53,282,476) Physical environment 4,054,997 236,806 - 1,492,366 (2,325,825) - (2,325,825) Transportation 17,019,774 126,510 575,718 2,186,943 (14,130,603) - (14,130,603) Economic environment 6,205,041 312,146 1,412,801 - (4,480,094) - (4,480,094) Human services 462,569 - 430,799 - (31,770) - (31,770) Culture and recreation 50,484,936 8,384,131 2,015,157 3,344,974 (36,740,674) - (36,740,674) Interest on long-term debt 744,723 - - - (744,723) - (744,723) Total governmental activities 165,032,041 44,768,013 7,456,355 7,146,133 (105,661,540) - (105,661,540) Business-type activities:Water & Sewer Utility 82,197,278 83,994,310 - 2,711,951 - 4,508,983 4,508,983 Gas Utility 35,568,928 45,119,516 - - - 9,550,588 9,550,588 Solid Waste Utility 17,053,411 23,233,733 - - - 6,180,322 6,180,322 Stormwater Utility 14,550,070 18,396,593 - 961,324 - 4,807,847 4,807,847 Recycling Utility 3,041,556 2,315,829 82,821 - - (642,906) (642,906) Marine 4,119,043 5,065,457 - 4,929 - 951,343 951,343 Aviation 639,695 317,421 - 107,216 - (215,058) (215,058) Parking System 4,817,492 6,348,031 - - - 1,530,539 1,530,539 Clearwater Harbor Marina 894,748 804,244 - - - (90,504) (90,504) Total business-type activities 162,882,221 185,595,134 82,821 3,785,420 - 26,581,154 26,581,154 Total primary government 327,914,262$ 230,363,147$ 7,539,176$ 10,931,553$ (105,661,540) 26,581,154 (79,080,386) General revenues: Taxes: Property taxes 50,609,855 - 50,609,855 Sales taxes 19,014,835 - 19,014,835 Utility taxes 15,544,160 - 15,544,160 Communications services taxes 4,721,390 - 4,721,390 Other taxes 8,727,550 - 8,727,550 Investment loss (136,110) (350,107) (486,217) Miscellaneous 100,180 - 100,180 Transfers 10,340,812 (10,340,812) - Total general revenues, transfers, and change in estimate 108,922,672 (10,690,919) 98,231,753 Change in net position 3,261,132 15,890,235 19,151,367 Net position - beginning (Restated - See Note IV.I.) 456,414,906 483,101,263 939,516,169 Net position - ending 459,676,038$ 498,991,498$ 958,667,536$ The notes to the financial statements are an integral part of this statement.City of Clearwater, FloridaStatement of ActivitiesFor the Year Ended September 30, 2018 Net (Expense) Revenue and Changes in Net Position21 Special Capital Other Totals General Development Improvement Governmental Governmental Fund Fund Fund Funds Funds ASSETS Cash and investments $ 28,879,120 $ 1,670,366 $ 60,365,954 $ 20,765,230 $ 111,680,670 Receivables (net where applicable, of allowances for estimated uncollectible amounts): Accrued interest 191,019 144,850 59,151 84,146 479,166 Accounts and contracts 551,178 - - - 551,178 Mortgages, notes and other loans - - - 4,845,449 4,845,449 Property taxes 75,253 5,261 - - 80,514 Utility taxes 1,100,343 - - - 1,100,343 Franchise fees 943,833 - - - 943,833 Other 94,511 - 488,530 9,348 592,389 Due from other governmental entities - grants - - 1,739,515 232,221 1,971,736 Due from other governmental entities - other 2,235,674 3,139,302 2,824,861 110,100 8,309,937 Inventories, at cost 75,728 - - - 75,728 Advances to other funds - - - 325,440 325,440 Total assets $ 34,146,659 $ 4,959,779 $ 65,478,011 $ 26,371,934 $ 130,956,383 LIABILITIES Accounts and contracts payable $ 1,614,830 $ - $ 5,527,652 $ 425,388 $ 7,567,870 Accrued payroll 2,680,021 - - 43,011 2,723,032 Due to other governmental entities 103,181 200,047 - 74,029 377,257 Deposits 5,300 - - - 5,300 Construction escrows - - - 3,383 3,383 Unearned revenue 1,695,188 - - 5,208 1,700,396 Advances from other funds - - - 325,440 325,440 Total liabilities 6,098,520 200,047 5,527,652 876,459 12,702,678 DEFERRED INFLOWS OF RESOURCES Deferred inflows - property taxes 75,253 5,261 - - 80,514 Deferred inflows - code enforcement liens 284,750 - - - 284,750 Total deferred inflows of resources 360,003 5,261 - - 365,264 FUND BALANCES Nonspendable inventories 75,728 - - - 75,728 Restricted - 3,013,756 44,058,553 20,256,088 67,328,397 Committed - 296,548 15,820,876 3,711,591 19,829,015 Assigned 435,975 1,444,167 70,930 1,527,796 3,478,868 Unassigned 27,176,433 - - - 27,176,433 Total fund balances 27,688,136 4,754,471 59,950,359 25,495,475 117,888,441 Total liabilities, deferred inflows and fund balances $ 34,146,659 $4,959,779 $ 65,478,011 $ 26,371,934 $ 130,956,383 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Balance Sheet Governmental Funds September 30, 2018 22 Total fund balances of governmental funds 117,888,441$ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. The cost of the assets totals $568,691,456 and the accumulated depreciation totals $280,599,929.288,091,527 Other assets are prepaid or are not available as financial resources and, therefore, are not recognized in the funds: Accrued liens 262,687$ Accrued permit fees 10,170 272,857 The net pension asset related to governmental activities does not represent financial resources and is not reported in the funds. Deferred outflows relating to deferred amounts on refundings and pensions are not financial resources and, therefore, are not reported in the funds 6,208,613 Deferred inflows relating to pensions and other postemployment benefits are not current liabilities or financial uses and, therefore, are not reported in the funds (40,193,409) Accrued pollution remediation obligation expenses are not financial uses and, therefore, are not reported in the funds. Accrued general long-term debt interest expenses are not financial uses and, therefore, are not reported in the funds. The assets and liabilities of the internal service funds (funds used to charge the costs of certain activities to individual funds) are included in the governmental activities in the statement of net position. Net position of internal service funds 75,869,953 Less: Capital assets included in total governmental capital assets above (29,297,483) Less: Net pension asset included in total governmental net pension asset above (8,444,146) Less: Deferred outflows included in total governmental above (648,651) Add: Deferred inflows included in total governmental above 4,210,531 Add: Capital lease purchases payable included in total governmental below 22,384,758 Add: Compensated absences included in total governmental below 919,949 Add: Other post-employment benefits included in total governmental below 2,329,548 Less: Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 64,772,927 Long-term liabilities, including bonds payable, are not due and payable in the current period and, accordingly, are not reported in the funds. Long-term liabilities at year-end consist of: Bonds payable (6,185,000) Add: Issuance premium (to be amortized as a reduction of interest expense) (87,665) Capital lease purchases payable (25,210,660) Other post-employment benefits (18,887,201) Compensated absences (8,411,742) (58,782,268) Total net position of governmental activities 459,676,038$ The notes to the financial statements are an integral part of this statement. (237,318) (26,922) City of Clearwater, Florida Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position September 30, 2018 (2,551,532) 81,681,590 23 Special Capital Other Total General Development Improvement Governmental Governmental Fund Fund Fund Funds Funds REVENUES Taxes: Property $ 48,294,661 $ 2,416,217 $ - $ - $ 50,710,878 Sales - 11,669,871 - - 11,669,871 Utility 15,544,160 - - - 15,544,160 Communications services 4,721,390 - - - 4,721,390 Other taxes 1,956,325 1,536,462 - - 3,492,787 Total taxes 70,516,536 15,622,550 - - 86,139,086 Franchise fees 9,992,264 - - - 9,992,264 Licenses, permits, and fees 3,372,026 375,824 - - 3,747,850 Intergovernmental: Federal - - 7,148 1,073,533 1,080,681 State 14,147,038 - 2,346,022 1,056,877 17,549,937 Local 9,051,276 1,341,676 2,865,224 2,387,653 15,645,829 Total intergovernmental 23,198,314 1,341,676 5,218,394 4,518,063 34,276,447 Charges for services 15,915,397 - - 1,465,066 17,380,463 Fines and forfeitures 1,724,608 - - 440,506 2,165,114 Investment earnings (loss): Interest 665,862 839,962 1,444 599,729 2,106,997 Net appreciation (depreciation) in fair value (485,789) (1,038,564) 1,807 (390,160) (1,912,706) Total investment earnings (loss)180,073 (198,602) 3,251 209,569 194,291 Miscellaneous 2,435,312 - 222,078 1,841,623 4,499,013 Total revenues 127,334,530 17,141,448 5,443,723 8,474,827 158,394,528 EXPENDITURES Current: General government 14,077,727 - 160,846 3,011,401 17,249,974 Public safety 70,099,153 - 1,213,398 3,173,629 74,486,180 Physical environment 3,358,593 - 1,000,930 43,995 4,403,518 Transportation 5,762,954 - 3,734,108 132,325 9,629,387 Economic environment 2,037,686 - - 2,067,921 4,105,607 Human services 172,211 - - 317,551 489,762 Culture and recreation 30,229,124 - 10,932,825 1,868,267 43,030,216 Debt service: Principal - - - 1,270,745 1,270,745 Interest & fiscal charges - - - 380,392 380,392 Capital outlay - - 8,579,987 340,696 8,920,683 Total expenditures 125,737,448 - 25,622,094 12,606,922 163,966,464 Excess (deficiency) of revenues over (under) expenditures 1,597,082 17,141,448 (20,178,371) (4,132,095) (5,571,936) OTHER FINANCING SOURCES (USES) Transfers in 10,848,018 - 28,671,654 9,831,238 49,350,910 Transfers out (13,326,667) (25,251,170) (1,569,152) (3,897,305) (44,044,294) Other long-term debt issued - - 1,677,000 - 1,677,000 Total other financing sources (uses) (2,478,649) (25,251,170) 28,779,502 5,933,933 6,983,616 Net change in fund balances (881,567) (8,109,722) 8,601,131 1,801,838 1,411,680 Fund balances - beginning 28,569,703 12,864,193 51,349,228 23,693,637 116,476,761 Fund balances - ending $ 27,688,136 $ 4,754,471 $ 59,950,359 $ 25,495,475 $ 117,888,441 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2018 24 Net change in fund balances - total governmental funds 1,411,680$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those costs over the life of the assets. This is the amount by which capital outlays exceeded depreciation in the current period. Expenditures for capital assets 7,410,709$ Less current year depreciation (21,282,130) (13,871,421) In the Statement of Activities, capital assets donated from enterprise funds are reported. Governmental funds do not report capital assets.6,626 In the Statement of Activities the gain on disposition of capital assets is reported. The gain is not a use of current resources and thus is not reported in the funds.569,647 Capital lease proceeds provide current financial resources to governmental funds; however, capital leases increase long-term liabilities in the Statement of Net Position. In the current year these amounts are: Capital lease proceeds (1,677,000) Deferred outflows and deferred inflows are not current resources or uses of current financial resources and consequently are not reported in the funds: Current year change in deferred outflows 2,645,267 Current year change in deferred inflows (11,208,541) Repayment of long term debt principal is an expenditure in the governmental funds; however, the repayment reduces long-term liabilities in the Statement of Net Position. Current year amounts are: Revenue bond principal payments 725,000 Capital lease principal payments 545,745 1,270,745 Net pension asset is not a current financial resource and consequently is not reported in the funds; however, it is an asset in the Statement of Net Position. Current year change in the net pension asset 18,965,251 Liability for other post-employment benefits (OPEB) does not require the use of current financial resources and consequently is not reported in the funds; however, it is a liability in the Statement of Net Position. Current year change in the liability for other post-employment benefits (363,538) Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds: Current year change in compensated absences 29,679 Amortization of bond discounts and premiums 16,242 Current year change in pollution remediation obligation (12,592) Current year change in accrued interest expense 3,247 36,576 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds: Current year change in accrued property taxes receivable (101,023) Current year change in accrued liens receivable (246,101) Current year change in deferred permit fees (3,430) The net revenues of internal service funds (funds used to charge the costs of certain activities to individual funds) for governmental activities are reported in the Statement of Activities but not in the governmental funds.5,826,394 Total change in net position of governmental activities 3,261,132$ The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds For the Year Ended September 30, 2018 to the Statement of Activities 25 Variance with Actual Final Budget Original Final Amounts Positive (Negative) Taxes: Property $ 48,026,390 $ 48,281,380 $ 48,294,661 $ 13,281 Utility taxes 14,741,900 15,141,900 15,544,160 402,260 Communications services 4,560,000 4,560,000 4,721,390 161,390 Other taxes 2,135,000 2,135,000 1,956,325 (178,675) Total taxes 69,463,290 70,118,280 70,516,536 398,256 Franchise fees 10,030,000 9,930,000 9,992,264 62,264 Licenses, permits, and fees 2,191,500 2,891,500 3,372,026 480,526 Intergovernmental: State 13,733,230 13,655,197 14,147,038 491,841 Local 8,978,210 9,019,810 9,051,276 31,466 Total intergovernmental 22,711,440 22,675,007 23,198,314 523,307 Charges for services 16,311,460 15,976,060 15,915,397 (60,663) Fines and forfeitures 1,189,000 1,469,000 1,724,608 255,608 Investment earnings (loss): Interest 500,000 500,000 665,862 165,862 Net appreciation (depreciation) in fair value - - (485,789) (485,789) Total investment earnings (loss) 500,000 500,000 180,073 (319,927) Miscellaneous 1,827,430 2,391,930 2,435,312 43,382 Total revenues 124,224,120 125,951,777 127,334,530 1,382,753 EXPENDITURES General government City Council 318,580 319,960 318,650 1,310 City Manager's Office 1,009,620 1,028,486 1,000,009 28,477 City Attorney's Office 1,666,230 1,695,529 1,523,084 172,445 Official Records & Legislative Services 1,172,830 1,186,058 1,127,501 58,557 Public Communications 1,025,640 1,043,740 1,030,070 13,670 Finance 2,478,120 2,526,130 2,197,929 328,201 Human Resources 1,231,480 1,250,817 962,697 288,120 Non-Departmental 2,191,610 3,759,610 3,742,590 17,020 Engineering 62,327 63,650 58,486 5,164 Planning 2,004,710 2,089,840 1,874,565 215,275 City Auditor's Office 218,270 222,810 210,541 12,269 Total general government 13,379,417 15,186,630 14,046,122 1,140,508 Public safety Police 41,176,420 41,036,813 40,166,221 870,592 Fire 26,317,890 26,360,498 26,031,488 329,010 Development & Neighborhood Services 3,667,520 3,929,600 3,840,286 89,314 Total public safety 71,161,830 71,326,911 70,037,995 1,288,916 Physical environment Engineering 2,773,552 2,832,407 2,602,627 229,780 Parks and Recreation 1,043,130 1,022,160 807,470 214,690 Total physical environment 3,816,682 3,854,567 3,410,097 444,470 Transportation Engineering 4,708,131 4,750,579 4,556,934 193,645 Parks and Recreation 1,237,300 1,211,084 1,170,666 40,418 Total transportation 5,945,431 5,961,663 5,727,600 234,063 Economic environment CRA Administration 397,890 437,170 417,605 19,565 Economic Development 1,828,900 1,850,810 1,551,881 298,929 Total economic environment 2,226,790 2,287,980 1,969,486 318,494 Human Services Human Resources / Equity Services 175,140 177,980 172,211 5,769 Total human services 175,140 177,980 172,211 5,769 Culture and recreation Parks and Recreation 22,261,980 22,241,668 22,183,410 58,258 Library 7,122,220 7,200,870 6,864,970 335,900 Marine 1,225,420 1,233,130 1,094,093 139,037 Total culture and recreation 30,609,620 30,675,668 30,142,473 533,195 Total expenditures (budgetary basis) 127,314,910 129,471,399 125,505,984 3,965,415 Excess (deficiency) of revenues over (under) expenditures (budgetary basis) (3,090,790) (3,519,622) 1,828,546 5,348,168 OTHER FINANCING SOURCES (USES) Transfers in 10,721,600 11,021,931 10,848,018 (173,913) Transfers out (7,630,810) (13,531,942) (13,326,667) 205,275 Total other financing sources (uses) (budgetary basis) 3,090,790 (2,510,011) (2,478,649) 31,362 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (budgetary basis) Encumbered purchase orders, beginning of year - - (231,464) (231,464) Encumbered purchase orders, end of year - - - - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (GAAP basis) Fund balances - beginning 28,569,703 28,569,703 28,569,703 - Fund balances - ending $ 28,569,703 $ 22,540,070 $ 27,688,136 $ 5,148,066 The notes to the financial statements are an integral part of this statement. REVENUES - (6,029,633) (650,103) City of Clearwater, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) General Fund For the Year Ended September 30, 2018 - (6,029,633) (881,567) 5,148,066 Budgeted Amounts 5,379,530 26 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes: Property $ 2,402,590 $ 2,415,550 $ 2,416,217 $ 667 Sales 11,588,900 11,588,900 11,669,871 80,971 Other taxes 1,540,550 1,540,550 1,536,462 (4,088) Total taxes 15,532,040 15,545,000 15,622,550 77,550 Licenses, permits, and fees 270,000 377,090 375,824 (1,266) Intergovernmental: Local - - 1,341,676 1,341,676 Investment earnings (loss): Interest 450,000 450,000 839,962 389,962 Net appreciation (depreciation) in fair value - - (1,038,564) (1,038,564) Total investment earnings (loss) 450,000 450,000 (198,602) (648,602) Total revenues 16,252,040 16,372,090 17,141,448 769,358 EXPENDITURES Total expenditures - - - - Excess of revenues over expenditures 16,252,040 16,372,090 17,141,448 769,358 OTHER FINANCING SOURCES (USES) Transfers out (25,016,170) (25,251,170) (25,251,170) - Total other financing sources (uses) (25,016,170) (25,251,170) (25,251,170) - Excess of revenues and other sources over expenditures and other uses (8,764,130) (8,879,080) (8,109,722) 769,358 Fund balances - beginning 12,864,193 12,864,193 12,864,193 - Fund balances - ending $ 4,100,063 $ 3,985,113 $ 4,754,471 $ 769,358 The notes to the financial statements are an integral part of this statement. For the Year Ended September 30, 2018 Budgeted Amounts City of Clearwater, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (GAAP Basis) Special Development Fund 27 Water Solid Waste and Sewer Gas & Recycling Utility Utility Utility ASSETS Current assets: Cash and investments $ 69,309,544 $39,773,089 $ 39,938,631 Accrued interest receivable 340,845 169,789 142,923 Accounts and contracts receivable: Billed 3,821,905 1,330,813 1,184,641 Unbilled charges estimated 3,588,600 1,823,800 1,003,382 7,410,505 3,154,613 2,188,023 Less: Allowance for uncollectable accounts (64,396) (58,349) (17,551) Total receivables, net 7,346,109 3,096,264 2,170,472 Other receivables 41,079 - 343 Due from other funds - - - Due from other governmental entities 1,349,285 246,386 82,821 Inventories, at cost 863,295 1,761,302 - Prepaid expenses and other assets 413,419 - - Total current assets - unrestricted 79,663,576 45,046,830 42,335,190 Current assets - restricted: Restricted cash and investments 11,651,299 3,175,077 1,150,666 Total current assets - restricted 11,651,299 3,175,077 1,150,666 Total current assets 91,314,875 48,221,907 43,485,856 Noncurrent assets: Restricted: Restricted cash and investments 21,086,399 300,000 - Advances to other funds - - - Net pension asset 8,729,345 4,755,383 5,712,310 Capital assets: Land and other nondepreciable assets 17,033,968 9,066,112 5,319,233 Capital assets, net of accumulated depreciation 218,632,633 64,562,597 1,687,174 Total noncurrent assets 265,482,345 78,684,092 12,718,717 Total assets 356,797,220 126,905,999 56,204,573 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - bond refunding 11,276,974 355,387 - Deferred outflows - pension 670,559 365,293 438,801 Total deferred outflows of resources 11,947,533 720,680 438,801 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Statement of Net Position Proprietary Funds September 30, 2018 Business-type Enterprise 28 Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds $ 37,436,816 $20,648,460 $207,106,540 $ 74,730,688 141,782 88,125 883,464 255,611 877,267 - 7,214,626 - 1,500,900 - 7,916,682 - 2,378,167 - 15,131,308 - (13,536) - (153,832) - 2,364,631 - 14,977,476 - - - 120 41,542 165,311 - - - 314,562 201,164 15,892 1,895,548 30,801 - 37,017 2,661,614 422,760 - - 413,419 1,504,673 40,144,393 20,789,614 227,979,603 77,424,406 1,876,164 - 17,853,206 - 1,876,164 - 17,853,206 - 42,020,557 20,789,614 245,832,809 77,424,406 1,375,312 - 22,761,711 - - - - 3,185,438 2,696,319 1,750,884 23,644,241 8,444,146 31,086,506 2,946,242 65,452,061 729,591 44,084,620 27,895,394 356,862,418 28,567,892 79,242,757 32,592,520 468,720,431 40,927,067 121,263,314 53,382,134 714,553,240 118,351,473 951,973 - 12,584,334 - 207,122 134,497 1,816,272 648,651 1,159,095 134,497 14,400,606 648,651 (Continued) Activities Funds 29 Water Solid Waste and Sewer Gas & Recycling Utility Utility Utility City of Clearwater, Florida Statement of Net Position Proprietary Funds September 30, 2018 Business-type Enterprise LIABILITIES Current liabilities: Accounts and contracts payable 3,998,214 4,155,607 1,225,042 Accrued payroll 342,061 185,903 194,005 Accrued interest payable 41,883 37,936 13,672 Deposits - - - Unearned revenue and liens - - - Current portion of long-term liabilities: Compensated absences 394,934 375,502 213,094 Revenue bonds 1,216,667 605,000 - Capital lease purchases payable 127,810 121,014 - Due to other funds - - 314,562 Claims payable - - - Total current liabilities (payable from current assets) 6,121,569 5,480,962 1,960,375 Current liabilities (payable from restricted assets): Construction contracts payable 240,150 - - Accrued interest payable 1,740,800 20,845 - Current portion of long-term liabilities, revenue bonds 6,083,333 55,000 - Customer deposits 3,587,016 3,099,232 1,150,666 Total current liabilities (payable from restricted assets) 11,651,299 3,175,077 1,150,666 Total current liabilities 17,772,868 8,656,039 3,111,041 Noncurrent liabilities: Compensated absences 335,582 319,070 181,069 Other postemployment benefits 2,915,685 1,636,273 1,985,774 Revenue bonds (net of unamortized premiums/discounts) 136,077,136 9,245,000 - Capital lease purchases payable 282,261 378,561 - Advances from other funds - - 3,185,438 Claims payable - - - Total noncurrent liabilities 139,610,664 11,578,904 5,352,281 Total liabilities 157,383,532 20,234,943 8,463,322 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension 4,276,480 2,329,648 2,798,443 Deferred inflows - other postemployment benefits 92,330 51,816 62,883 Total deferred inflows of resources 4,368,810 2,381,464 2,861,326 NET POSITION Net investment in capital assets 103,156,368 63,579,521 7,006,407 Restricted for: Revenue bond debt service and sinking fund requirements 13,709,533 55,000 - Revenue bond renewal and replacement requirements 10,511,133 300,000 - Water and sewer impact fees 2,949,066 - - Stormwater system fees - - - Pensions 8,729,345 4,755,383 5,712,310 Unrestricted 67,936,966 36,320,368 32,600,009 Total net position $ 206,992,411 $105,010,272 $ 45,318,726 The notes to the financial statements are an integral part of this statement. 30 Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds Activities Funds 1,083,622 282,596 10,745,081 1,748,497 88,698 86,738 897,405 300,301 - - 93,491 - - 92,201 92,201 - - 17,487 17,487 255,222 141,894 73,064 1,198,488 497,346 134,167 - 1,955,834 - 59,527 4,033 312,384 7,014,291 - - 314,562 - - - - 3,886,565 1,507,908 556,119 15,626,933 13,702,222 - - 240,150 - 400,331 - 2,161,976 - 1,475,833 - 7,614,166 - - - 7,836,914 - 1,876,164 - 17,853,206 - 3,384,072 556,119 33,480,139 13,702,222 120,569 62,083 1,018,373 422,603 773,427 1,063,768 8,374,927 2,329,548 28,446,883 - 173,769,019 - 165,195 11,516 837,533 15,370,467 - - 3,185,438 - - - - 7,094,800 29,506,074 1,137,367 187,185,290 25,217,418 32,890,146 1,693,486 220,665,429 38,919,640 1,320,919 857,753 11,583,243 4,136,762 24,492 33,687 265,208 73,769 1,345,411 891,440 11,848,451 4,210,531 45,841,494 30,826,087 250,409,877 6,912,725 2,851,145 - 16,615,678 - - - 10,811,133 - - - 2,949,066 - 14,318 - 14,318 - 2,696,319 1,750,884 23,644,241 8,444,146 36,783,576 18,354,734 191,995,653 60,513,082 $ 88,186,852 $50,931,705 496,439,966 $ 75,869,953 Net position of business-type activities $ 498,991,498 2,551,532 Adjustment to reflect consolidation of internal service fund activities related to enterprise funds 31 Water Solid Waste and Sewer Gas & Recycling Utility Utility Utility Operating revenues: Sales to customers $ 83,260,310 $42,141,031 $ 24,963,254 Service charges to customers 278,859 2,214,380 - User charges to customers - - - Billings to departments - - - Rentals 72,692 - 309,803 Other 382,449 764,105 359,326 Total operating revenues 83,994,310 45,119,516 25,632,383 Operating expenses: Personal services 11,010,115 5,025,137 6,585,270 Purchases for resale 6,942,125 13,076,490 3,336 Operating materials and supplies 4,874,212 1,311,001 368,495 Transportation 1,527,942 774,484 5,624,359 Utility service 2,908,943 135,007 101,481 Dumping charges 5,159 - 4,266,466 Depreciation 30,322,563 5,113,151 489,823 Interfund administrative charges 6,985,080 2,685,290 1,541,000 Other current charges: Professional fees 2,001,426 905,154 461,800 Advertising 27,235 2,583,351 131,802 Communications 225,752 139,818 97,075 Printing and binding 9,780 17,644 6,956 Insurance 827,100 256,760 270,870 Repairs and maintenance 7,030,722 250,435 91,396 Rentals 1,048,080 19,003 6,294 Miscellaneous 253,291 480,791 143,378 Data processing charges 773,630 534,120 243,000 Taxes 33,356 2,112,568 9,578 Total other current charges 12,230,372 7,299,644 1,462,149 Total operating expenses 76,806,511 35,420,204 20,442,379 Operating income 7,187,799 9,699,312 5,190,004 The notes to the financial statements are an integral part of this statement. Enterprise City of Clearwater, Florida Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended September 30, 2018 Business-type 32 Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds $ 18,225,768 $ 8,591,709 $177,182,072 $ - - - 2,493,239 - - 256,299 256,299 - - - - 56,968,014 - 2,777,066 3,159,561 43,868 230,052 916,705 2,652,637 1,579,218 18,455,820 12,541,779 185,743,808 58,591,100 2,677,067 2,880,275 28,177,864 8,891,993 - 2,113,236 22,135,187 4,059,298 295,771 140,037 6,989,516 1,028,313 1,082,160 162,416 9,171,361 311,492 39,567 512,968 3,697,966 525,739 120,990 - 4,392,615 - 5,818,805 1,562,454 43,306,796 9,386,104 1,424,940 1,475,660 14,111,970 235,450 361,361 490,335 4,220,076 7,733,381 - 5,471 2,747,859 - 42,788 86,258 591,691 1,205,970 867 2,903 38,150 30,330 114,630 117,800 1,587,160 20,145,832 1,338,041 194,540 8,905,134 1,902,402 2,811 20,311 1,096,499 600,124 63,026 620,602 1,561,088 310,154 279,880 140,470 1,971,100 500,250 - 1,204 2,156,706 24,822 2,203,404 1,679,894 24,875,463 32,453,265 13,662,704 10,526,940 156,858,738 56,891,654 4,793,116 2,014,839 28,885,070 1,699,446 (Continued) Activities Funds 33 Water Solid Waste and Sewer Gas & Recycling Utility Utility Utility Enterprise City of Clearwater, Florida Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended September 30, 2018 Business-type Nonoperating revenues (expenses): Investment earnings (loss): Interest 1,600,978 725,289 644,466 Net appreciation (depreciation) in fair value (1,856,694) (725,326) (701,328) Total investment earnings (loss) (255,716) (37) (56,862) Interest expense (5,809,367) (380,125) (15,326) Gain (loss) on disposal of capital assets (819) (24,035) 19,000 Total nonoperating revenue (expenses) (6,065,902) (404,197) (53,188) Income before contributions and transfers 1,121,897 9,295,115 5,136,816 Capital grants and contributions 2,711,951 - - Transfers in 335,862 660 - Transfers out (4,347,870) (2,885,226) (1,726,973) Change in net position (178,160) 6,410,549 3,409,843 Net position - beginning (as previously reported) 208,230,179 99,185,883 42,661,334 Prior period restatements (See Note IV.I.) (1,059,608) (586,160) (752,451) Net position - restated 207,170,571 98,599,723 41,908,883 Total net position - ending $ 206,992,411 $105,010,272 $ 45,318,726 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in net position of business-type activities (page 21) The notes to the financial statements are an integral part of this statement. 34 Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds Activities Funds 691,871 319,950 3,982,554 1,149,612 (696,513) (352,800) (4,332,661) (1,247,851) (4,642) (32,850) (350,107) (98,239) (1,029,067) (361) (7,234,246) (389,022) - (6,626) (12,480) 796,630 (1,033,709) (39,837) (7,596,833) 309,369 3,759,407 1,975,002 21,288,237 2,008,815 902,097 112,145 3,726,193 - 112,070 167 448,759 5,593,954 (985,740) (843,762) (10,789,571) (559,758) 3,787,834 1,243,552 14,673,618 7,043,011 84,692,149 50,070,786 69,709,663 (293,131) (382,633) (882,721) 84,399,018 49,688,153 68,826,942 $ 88,186,852 $ 50,931,705 $ 75,869,953 1,216,617 $ 15,890,235 35 Water Solid Waste and Sewer Gas & Recycling Utility Utility Utility CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 84,329,001 $ 45,249,154 $ 25,703,971 Cash received from other funds - - - Cash payments to suppliers (24,101,942) (19,404,739) (5,066,245) Cash payments to employees (11,964,121) (6,635,356) (7,207,005) Cash payments to other funds (11,136,587) (4,564,195) (7,867,699) Net cash provided by operating activities 37,126,351 14,644,864 5,563,022 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 335,862 660 - Transfers to other funds (4,347,870) (2,885,226) (1,726,973) Receipt of cash on loans to/from other funds - - 3,500,000 Payment of cash on loans to/from other funds - - - Net cash provided (used) by noncapital financing activities (4,012,008) (2,884,566) 1,773,027 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on debt (6,549,578) (680,330) - Interest paid (5,761,515) (363,317) (8,829) Acquisition of capital assets (7,835,399) (13,248,462) (3,864,911) Proceeds from issuance of debt 103,584 173,410 - Capital contributed by: Other governmental entities 333,703 - - Property owners 7,072 - - Developers 1,034,055 - - Net cash provided (used) by capital and related financing activities (18,668,078) (14,118,699) (3,873,740) CASH FLOWS FROM INVESTING ACTIVITIES Investment loss (255,716) (63,411) (114,038) Net cash used by investing activities (255,716) (63,411) (114,038) Net increase (decrease) in cash and cash equivalents 14,190,549 (2,421,812) 3,348,271 Cash and cash equivalents at beginning of year 87,856,693 45,669,978 37,741,026 Cash and cash equivalents at end of year $ 102,047,242 $ 43,248,166 $ 41,089,297 Cash and cash equivalents classified as: Cash and investments $69,309,544 $ 39,773,089 $ 39,938,631 Restricted cash and investments 32,737,698 3,475,077 1,150,666 Total cash and cash equivalents $ 102,047,242 $ 43,248,166 $ 41,089,297 The notes to the financial statements are an integral part of this statement. Enterprise City of Clearwater, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2018 Business-type 36 Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds $ 18,547,093 $ 12,553,402 $ 186,382,621 $ - - - - 58,482,437 (2,365,130) (4,093,036) (55,031,092) (33,723,398) (3,094,899) (3,122,174) (32,023,555) (10,091,439) (2,992,351) (2,130,142) (28,690,974) (4,575,567) 10,094,713 3,208,050 70,637,000 10,092,033 112,070 167 448,759 5,593,955 (985,740) (843,762) (10,789,571) (559,758) - - 3,500,000 316,667 - - - (3,500,000) (873,670) (843,595) (6,840,812) 1,850,864 (1,550,304) (3,955) (8,784,167) (6,504,671) (1,054,068) (361) (7,188,090) (389,022) (4,072,295) (61,869) (29,082,936) (9,886,787) - - 276,994 9,342,712 1,350,519 96,253 1,780,475 - - - 7,072 - 14,318 - 1,048,373 - (5,311,830) 30,068 (41,942,279) (7,437,768) (63,483) (61,275) (557,923) (202,682) (63,483) (61,275) (557,923) (202,682) 3,845,730 2,333,248 21,295,986 4,302,447 36,842,562 18,315,212 226,425,471 70,428,241 $ 40,688,292 $ 20,648,460 $ 247,721,457 $ 74,730,688 $ 37,436,816 $ 20,648,460 $ 207,106,540 $ 74,730,688 3,251,476 - 40,614,917 - $ 40,688,292 $ 20,648,460 $ 247,721,457 $ 74,730,688 (Continued) Activities Funds 37 Water Solid Waste and Sewer Gas & Recycling Utility Utility Utility Enterprise City of Clearwater, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2018 Business-type Reconciliation of operating income to net cash provided by operating activities: Operating income $ 7,187,799 $ 9,699,312 $ 5,190,004 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 30,322,563 5,113,151 489,823 Capitalized labor and materials (75,207) (1,260,631) - Change in assets, deferred outflows, liabilities and deferred inflows: (Increase) decrease in accounts receivable 150,883 265,907 126,496 (Increase) decrease in amount due from other governments - - (82,821) (Increase) decrease in inventory 64,640 (246,386) - (Increase) decrease in prepaid expenses (409,019) (26,863) - (Increase) decrease in net pension asset (1,858,123) (1,265,411) (1,169,289) (Increase) decrease in deferred outflows (296,856) (175,485) (191,722) Increase (decrease) in accounts and contracts payable 579,683 1,528,940 433,342 Increase (decrease) in accrued payroll (6,551) 64,388 2,587 Increase (decrease) in deposits 183,808 110,117 27,913 Increase (decrease) in unearned revenue - - - Increase (decrease) in other postemployment benefits 118,186 28,944 (77,550) Increase (decrease) in deferred inflows 1,164,545 808,881 814,239 Total adjustments 29,938,552 4,945,552 373,018 Net cash provided by operating activities $ 37,126,351 $ 14,644,864 $ 5,563,022 Non-cash investing, capital and financing activities: Contributions from developers $ 299,999 $ - $ - The notes to the financial statements are an integral part of this statement. 38 Governmental Activities - Stormwater Other Internal Service Utility Funds Total Funds Activities Funds $ 4,793,116 $ 2,014,839 $ 28,885,070 $ 1,699,446 5,818,805 1,562,454 43,306,796 9,386,104 - - (1,335,838) - 91,273 18,289 652,848 (82,365) - - (82,821) (30,801) - 10,961 (170,785) (18,361) - - (435,882) 558,482 (762,623) (572,028) (5,627,474) (2,394,551) (101,955) (70,383) (836,401) (319,634) (190,649) (149,928) 2,201,388 (157,220) 3,035 25,729 89,188 121,150 - 2,301 324,139 - - (8,967) (8,967) (63,806) (474) 38,282 107,388 (90,991) 444,185 336,501 3,568,351 1,484,580 5,301,597 1,193,211 41,751,930 8,392,587 $ 10,094,713 $ 3,208,050 $ 70,637,000 $ 10,092,033 $- $ - $299,999 $ - 39 Pension Trust Agency Funds Fund ASSETS Cash and investments $ 4,966,299 $ 453,926 Managed investment accounts, at fair value: Cash and cash equivalents 24,185,045 - Government bonds 79,938,292 - Index linked government bonds 879,538 - Agency bonds 9,653,262 - Municipal bonds 3,568,938 - Domestic corporate bonds 96,980,812 - International equity securities 126,665,608 - Domestic stocks 409,617,551 - Mortgage backed bonds 105,732,965 - Asset backed securities 9,009,234 - Other/Rights/Warrants 1,655 - Domestic equity mutual funds 62,515,720 - International equity mutual funds 46,054,821 - Infrastructure 36,724,132 - Real estate 96,566,163 - Total managed investment accounts 1,108,093,736 - Securities lending collateral 149,473,650 - Receivables: Interest and dividends 3,301,327 445 Unsettled investment sales 2,236,427 - Securities lending earnings 43,672 - Due from others 116,173 - Total receivables 5,697,599 445 Total assets 1,268,231,284 454,371 LIABILITIES Accounts payable 1,115,122 - Unsettled investment purchases 32,160,613 - Other payables 91,975 - Obligations under securities lending 149,473,650 - Other miscellaneous payables: Downtown Development Board - 224,798 Other - 229,573 Total miscellaneous payables - 454,371 Total liabilities 182,841,360 $ 454,371 FIDUCIARY NET POSITION Restricted for pensions 1,085,389,924 Total fiduciary net position $ 1,085,389,924 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Statement of Fiduciary Net Position Fiduciary Funds September 30, 2018 40 City of Clearwater, Florida Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended September 30, 2018 Pension Trust Funds ADDITIONS Contributions: Contributions from employer $ 10,650,462 Contributions from employer - state tax 2,151,967 Contributions from employees 7,127,965 Total contributions 19,930,394 Investment income: Net appreciation in fair value of investments 81,640,712 Interest 9,951,365 Dividends 10,752,801 102,344,878 Less investment expenses: Investment management / custodian fees (6,812,571) Net income from investing activities 95,532,307 Securities lending income: Gross earnings 3,147,789 Rebate received (paid) (2,358,344) Bank fees (276,150) Net income from securities lending 513,295 Total additions 115,975,996 DEDUCTIONS Benefits and withdrawal payments: Benefits 51,389,638 Withdrawal payments 892,181 Total benefits and withdrawal payments 52,281,819 Income before administrative expenses 63,694,177 Administrative expenses (389,069) Net increase 63,305,108 Fiduciary net position restricted for pensions Fiduciary net position - beginning 1,022,084,816 Fiduciary net position - ending $ 1,085,389,924 The notes to the financial statements are an integral part of this statement. 41 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 42 Note I – Summary of Significant Accounting Policies The City of Clearwater was first incorporated in 1915 and reestablished in 1923 as a municipal corporation by Chapter 9710, Special Laws of Florida, 1923, as amended. The City is a Florida municipal corporation governed by a five-member City Council including a mayor-council-member. The City has an estimated population of 115,589 and is located in the four- county Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area (MSA), which has an estimated population of 3,080,077. The financial statements of the City of Clearwater, Florida, reporting entity (City) have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The City’s more significant accounting policies are described below. I.A. Financial Reporting Entity In evaluating the City as a reporting entity, management has included in the accompanying financial statements the City of Clearwater (the primary government) and its component units, entities for which the government is financially accountable. The City has adhered to the standards set forth in GASB Statement No. 14, as amended by GASB Statement No. 39 and GASB Statement No. 61, in reporting the primary government (including blended component units), the reporting entity, and related organizations. Blended Component Unit – Clearwater Community Redevelopment Agency: Component units that meet the criteria for blended presentation in accordance with GASB Statement No. 14, as amended by GASB Statement No. 39 and GASB Statement No. 61, are reported in a manner similar to that of the primary government itself. Accordingly, throughout this report, data presented for the primary government includes data of the following blended component unit. The Clearwater Community Redevelopment Agency (CRA), created by authority of Florida Statute Chapter 163, Part III, and City of Clearwater Resolutions 81-67 and 81-68, although it is legally separate, is reported as if it were part of the City (blended component unit) because the City Council serves as the governing board of the CRA, and City management has operational responsibility for the CRA. Separate financial statements for the CRA are not available. However, financial statements for the CRA are included in the City’s comprehensive annual financial report as a governmental non-major special revenue fund and a governmental non-major capital projects fund. Related Organization – Clearwater Housing Authority (CHA): CHA is a public housing authority created by City Resolution 69-5 (1969), under Section 421.04 of the Florida Statutes. CHA receives primary funding from the Federal Department of Housing and Urban Development (HUD). The City Council appoints the governing board; however, the City Council is not able to impose its will on the CHA, nor does the City have any responsibility for the budget, debt, financing deficits, or fiscal management of CHA. Consequently, it is not a component unit of the City of Clearwater. Separate audited financial statements of CHA as of March 31, 2018 are available from CHA. Related Organization – Downtown Development Board: The City of Clearwater serves as administrative agent for the Clearwater Downtown Development Board (DDB). The Downtown Development Board is an independent special district of the City of Clearwater with an independent board elected by its members, with its own levy (0.9700 mills for fiscal 2018) on downtown properties, and is not financially dependent upon the City. Consequently, it is not a component unit of the City of Clearwater. The DDB’s cash balance held by the City as administrative agent is reflected in the City’s fiduciary agency fund. Separate audited financial statements of the DDB as of September 30, 2018 are available from the DDB. Jointly governed organization – Florida Gas Utility: The City of Clearwater is a member of the Florida Gas Utility (FGU), a non-profit municipal public entity created for the primary purpose of reducing the costs of purchased gas for its members. FGU is a public body corporate and politic pursuant to Section 163.01 Florida Statutes (the Florida Interlocal Cooperation Act), as amended, and the Interlocal Agreement, dated September 1, 1989, which was subsequently amended by the Amended Interlocal Agreement on June 1, 1992, amended and restated by the Amended and Restated Interlocal City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 43 Agreement, dated July 1, 1996, then amended and restated by the Second Amended and Restated Interlocal Agreement, dated July 27, 1999, and then amended and restated by the Third Amended and Restated Interlocal Agreement dated March 25, 2011 (the Interlocal Agreement), executed and delivered among FGU and its members, which include municipalities, municipal utilities, and an interlocal agreement consisting of such entities. Due to the diverse needs of municipal utility systems, FGU established itself as a project-oriented agency. Under this structure, each member has the option to participate in a project. FGU has the authority to, among other things, plan, finance, acquire, construct, manage, operate, deliver, service, utilize, own, broker, exchange, and distribute natural gas, or other energy and energy services, pursuant to the Interlocal Agreement. As of September 30, 2018, FGU has 23 members. Separate audited financial statements of FGU as of September 30, 2018, are available from FGU. I.B. Basis of Presentation The City’s Basic Financial Statements contain three components: government-wide financial statements, fund financial statements, and notes to the financial statements. I.B.1. Government-wide financial statements. The government-wide financial statements report information on all of the nonfiduciary activities of the primary government and its component unit using the accrual basis of accounting, which is similar to the accounting used by private-sector businesses. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of net position presents information on all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City. Net position is defined as the residual of all other elements presented in a statement of financial position. Net position is the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. Changes in net position may serve as an indicator of whether the financial position of the City is improving or deteriorating. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. The operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. Taxes and other items not properly included among program revenues are reported instead as general revenues. All revenues and expenses are reported as soon as the underlying transaction has occurred, regardless of when cash is received or paid. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other interfund services provided and used. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. I.B.2. Fund financial statements. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. An emphasis is on the major funds in either the governmental or business-type categories. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Non-major funds (by category) are summarized into a single column. The City reports the following major governmental funds: The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 44 The Special Development Fund is a special revenue fund used to account for impact fees, property taxes for road improvements, local option gas taxes, infrastructure taxes, and other revenues which are restricted legally or by City Council policy to be used for specific capital improvement projects. The Capital Improvement Fund is used to provide combined accounting presentation for all City capital improvement projects except those financed from proprietary funds or bond proceeds where bond ordinance provisions require the segregation of bond proceeds in separate funds. The City reports the following major enterprise funds: The Water and Sewer Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the water and sewer services of the City from charges made to users of the service. The Gas Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the gas services of the City from charges made to the users of the service. The Solid Waste & Recycling Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the solid waste and recycling services of the City from charges made to the users of the service. The Stormwater Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the stormwater management system of the City from charges assessed against each developed property. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund’s principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and service, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Additionally, the City reports the following fund types: Internal service funds account for fleet management, information technology, telephone, employee relations, facilities management, radio communications, insurance, and risk management services provided to other City departments on a cost reimbursement basis. The Garage, Administrative Services, General Services, and Central Insurance funds primarily benefit governmental funds and are consequently included as governmental activities. Pension trust funds account for the financial operation and condition of the Employees’ Pension Plan, the Firefighters’ Relief and Pension Plan, the Police Supplemental Pension Plan, and the Firefighters’ Supplemental Pension Plan. The Treasurer’s Escrow Agency Fund accounts for the receipt, custody, and expenditure of monies held temporarily in an agency capacity for other parties. The pension trust funds and the agency fund are fiduciary funds used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government-wide financial statements because the resources of these funds are not available to support the City’s own programs. I.C. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The agency fund included within the fiduciary fund financial statements also uses the accrual basis of accounting but does not have a measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 45 Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers property tax revenues to be available if they are collected within 60 days of the end of the current fiscal year. Other revenues are considered to be available if they are collected within 90 days of fiscal year-end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Intergovernmental revenues, representing grants and assistance received from other governmental units, are generally recognized as revenues in the period when all eligibility requirements, as defined by GASB Statement No. 33, have been met, and funds are available from the grantor agency or government. Taxes, franchise fees, licenses, and interest associated with the current fiscal period are all considered susceptible to accrual and so have been recognized as revenues of the current fiscal period for the governmental funds. All other revenue items are considered to be measurable and available only when cash is received by the City. I.D. Assets, Liabilities, and Net position or Fund Balance I.D.1. Deposits, pooled cash, and investments Cash and investments are presented on the balance sheet in the basic financial statements at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools; and GASB Statement No. 72, Fair Value Measurement and Application. Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The majority of the investments are held by the City's consolidated pool of cash and investments. The City utilizes the consolidated cash pool to account for cash and investments of all City funds other than those that are required by ordinance to be physically segregated. The consolidated cash pool concept allows each participating fund to benefit from the economies of scale and improved yield that are inherent to a larger investment pool. Formal accounting records detail the individual equities of the participating funds. The cash pool utilizes a single checking account for all City receipts and disbursements. Since fund equities in this cash management pool have the general characteristics of demand deposits in that additional funds may be deposited at any time and funds may be withdrawn at any time without prior notice or penalty, each fund's equity in pooled cash account is considered a cash equivalent, regardless of the maturities of investments held by the pool. All individual fund cash equity in a deficit (overdraft) position with respect to the consolidated cash pool is reclassified at year-end to short-term interfund payables to the Capital Improvement Fund. The Capital Improvement Fund is the fund selected by management to reflect the offsetting interfund receivables in such cases. The City Charter and the current Investment Policy, adopted by the City Council on September 9, 2010, authorize consolidated cash pool investments in the following: direct federal government obligations; federal agencies and instrumentalities; SEC registered money market funds with the highest credit quality rating; interest bearing time deposits or savings accounts in qualified public depositories; debt issued by the State of Florida or any political subdivision thereof including pools; securities of open-end or closed-end management-type investment companies as defined in the policy; collateralized repurchase agreements and reverse repurchase agreements; local government investment pools per Section 163.01, Florida Statutes; and commercial paper of prime quality as defined in the policy. All investments are reported at fair value. The City utilizes a very conservative investment philosophy when it invests its pooled cash funds in that the return of the principal is more important than the return on the principal. The City does not actively trade its portfolio and generally holds investments until maturity. Using a laddered approach to maturities and timing maturities to cash needs, the City does not anticipate selling investments to meet cash flow requirements. Under the City’s Investment Policy, a performance measurement standard has been established. The performance measure chosen is a weighted average of the overnight interest rate; and three month, six month, one year, three year, five year, and City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 46 ten year Treasury rates, respectively. For the fiscal year ended September 30, 2018, the performance measure weighted average was 2.10%. The actual pooled cash earnings performance before bank charges was 1.64%. Investments being held outside of the consolidated cash pool include escrowed debt service investments and employee retirement investments. Permissible escrowed debt service investments are specifically defined in each individual debt instrument, but generally follow the same limitations applicable to consolidated cash pool investments. The City maintains four different employee retirement programs, and each one has its own list of permitted investments. Generally, each plan allows the same type of investments as the consolidated cash pool, but additionally allows some portion of its assets to be invested in corporate bonds, notes of corporations, and stocks that are listed on one or more of the recognized national or international stock exchanges. I.D.2. Receivables and payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e. the current portion of interfund loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”. All trade and property tax receivables are shown net of an allowance for uncollectible accounts. Trade accounts receivable less than 60 days are included in the trade accounts receivable allowance for uncollectible accounts at the five-year average loss experience rate of 2.28%. Trade accounts receivable in excess of 60 days are reserved at 40%. The property tax receivable allowance for uncollectible accounts is 10% of the current year portion of the receivable, and 30%, 50%, 70%, 90%, and 95% for the receivable portions attributable to the prior five years respectively (fiscal 2013 thru 2017), and 100% of the receivable attributable to fiscal years 2012 and prior. Property tax revenue is recognized in the fiscal year for which the taxes are levied, provided the availability test is met, in conformance with National Council on Governmental Accounting Interpretation No. 3. Property taxes for the following fiscal year are levied by City Council action in September of each year. This levy is apportioned to property owners based on the previous January 1 assessed values. Tax bills are mailed out on or about November 1, and the collection period runs from November 1 through March 31. On April 1, unpaid property taxes are considered delinquent and become a lien. Tax certificates are sold in June for real property with delinquent taxes. Since taxes are not collected prior to November 1, the City does not record revenue for advance collections. Uncollected taxes receivable at year-end are recorded, with an appropriate allowance for estimated uncollectible amounts. The net amount deemed to be collectible but not current (not expected to be collected within sixty days after the close of the fiscal year) is shown as deferred inflows in the appropriate fund. All delinquent property taxes, except those levied specifically for the restricted purposes of financing activities accounted for in the Special Development Fund, are recorded in the General Fund. Property tax revenues are recognized in the General Fund and the required transfers to the appropriate debt service or pension fund are recorded as operating transfers from the General Fund. The City is permitted by State law to levy ten mills without referendum. Additional millage not subject to the ten mill limitation is authorized if approved by referendum, for a period not to exceed two years. The tax rate of 5.1550 mills for the year ended September 30, 2018 was the same rate that was levied for the eight preceding fiscal years. Water, gas, stormwater, solid waste and recycling charges to customers are based on actual consumption. Consumption is determined on a monthly cycle basis. The City recognizes the unbilled consumption as revenue as of September 30th. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 47 I.D.3. Inventories and prepaid items Inventories of proprietary funds are stated at cost and valued on the first-in first-out (FIFO) basis. In governmental funds, the majority of inventory items are accounted for under the purchases method, which provides that expenditures are recognized when the inventory item is purchased. The only governmental fund inventory that is accounted for under the consumption method is the General Fund inventory of items for resale at the City’s public fishing pier. Under the consumption method, the expenditure/expense is recognized when the inventory item is sold (or consumed). Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. I.D.4. Restricted assets Certain resources of the City’s enterprise funds are classified as restricted assets. Restricted assets include: Water and Sewer improvement charges restricted by the authorizing ordinances to the construction of additions and improvements to the water and sewer systems; Water & Sewer Utility, Gas Utility and Solid Waste & Recycling Utility restricted customer deposits; assets of the Water & Sewer Utility, Gas Utility, and Stormwater Utility funds restricted under the provisions of authorizing ordinances for revenue bonds to the payment of future revenue bond debt service, system construction, and renewals and replacements; and the net pension assets of the Water & Sewer Utility, Gas Utility, Solid Waste & Recycling Utility and Stormwater Utility funds that are in an irrevocable trust are restricted for pensions. I.D.5. Capital assets Capital assets, which include property, plant, equipment, and certain infrastructure assets, (e.g. roads, bridges, etc.) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets, as defined by the City, are assets with an initial individual cost of more than $5,000 (amount not rounded) and useful life greater than one year. Individual assets that cost less than $5,000, but that operate as part of a network system, may be capitalized in the aggregate, using the group method. Additionally, higher thresholds for capitalization apply to the following categories: land improvements, $50,000; buildings, building improvements, and utility systems, $100,000; intangible assets, $100,000; and infrastructure, $500,000. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. In accordance with GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period, interest incurred during the construction phase of capital assets of business-type activities is not capitalized after September 30, 2017. Property, plant, equipment, and intangible assets of the primary government are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings 10 – 40 Public domain infrastructure 20 – 40 Utility systems 18 – 40 Machinery & equipment 3 – 15 Vehicles 5 – 10 Intangible assets 5 – 20 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 48 I.D.6. Compensated absences It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation and sick leave “caps” vary depending upon an employee’s bargaining unit, hire date, etc, but generally employees may accumulate vacation time not exceeding 320 hours and sick leave not exceeding 1,560 hours. Upon retirement from City service a qualified employee is paid for all vacation time not exceeding the applicable vacation “cap” and one-half of accumulated unused sick leave not exceeding the sick leave cap (i.e. maximum pay-out of 780 hours for an employee with a 1,560 hour cap). The City accrues for all earned but unused vacation pay up to the applicable cap and the portion of unused sick leave estimated to be payable upon retirement. The current portion of compensated absences is the amount estimated to be used in the following year. For governmental activities, compensated absences are liquidated within the same governmental funds where the employee vacation and/or sick leave was earned. I.D.7. Long-term obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expended when incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. I.D.8. Deferred outflows/inflows of resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption on net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenditure/expense) until that time. The City reports deferred outflows related to bond refundings and pensions. Similarly, in addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies for a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports deferred inflows related to pensions, other post-employment benefits (OPEB), property taxes receivable and code enforcement liens. In accordance with GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, deferred outflows related to deferred amounts on bond refundings are reported in the Water and Sewer Utility, Gas Utility and Stormwater Utility funds, as well as in the government-wide statements. These amounts represent the difference between the reacquisition price and the net carrying amount of the old debt, which is amortized over the remaining life of the old debt or the life of the new debt, whichever is shorter. In accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions, changes in total pension liability arising from the differences between expected and actual experience, changes of assumption of future economic and demographic factors and the net difference between projected and actual earnings on pension plan investments are recognized as deferred outflows of resources or deferred inflows of resources and are reported in all enterprise and internal service funds, as well as in the government-wide statements. Changes between expected and actual experience and changes City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 49 of assumptions are recognized in pension expense over a closed period equal to the average of the expected remaining service lives of all active and inactive employees, while the difference between projected and actual earnings is recognized in pension expense over a closed five-year period. In accordance with GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, differences between expected and actual experience and changes in assumptions are recognized in OPEB expense using a systematic and rational method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with OPEB through the OPEB plan (active employees and inactive employees), determined as of the beginning of the measurement period. At October 1, 2017, the beginning of the current measurement period, the average of the expected remaining services lives for purposes of recognizing the applicable deferred outflows and inflows of resources established in the current measurement period is 6.20 years. I.D.9. Net position flow assumption Sometimes the City will fund outlays for a particular purpose from both unrestricted resources and restricted resources, such as restricted bond or grant proceeds. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made regarding the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. I.D.10. Fund balance flow assumption Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made regarding the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. I.D.11. Fund balance policies The fund balance of governmental funds is reported in various classifications that comprise a hierarchy based primarily on the extent to which the government is bound to observe constraints imposed upon the use of the resources reported in the governmental funds. Each classification of fund balance is based on the relative strength of the constraints that control how specific amounts can be spent. The order of spending follows the same hierarchy. Restricted resources are applied first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned or unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Nonspendable fund balance represents amounts that cannot be spent, such as inventories, prepaid amounts, and amounts that are legally or contractually required to remain intact. Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Committed fund balance includes amounts that can be used only for the specific purposes determined by the adoption of an ordinance prior to the end of the fiscal year by the City Council, the highest level of decision-making authority. Once adopted by ordinance, a commitment can only be revised or removed by the adoption of another ordinance. Assigned fund balance includes amounts that are intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed because they are supported by management’s intent rather than City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 50 a formal action of the City Council. The Finance Director is authorized by Section 2.511 of the Code of Ordinances to assign fund balance. Since assignments only exist temporarily, no further action is required to revise or remove them. Unassigned fund balance includes amounts not classified in the above categories. Positive unassigned fund balance may only be reported in the general fund. In all other funds, unassigned fund balance is limited to negative residual fund balances. Minimum fund balance. Per City Council Policy, a minimum General Fund unassigned balance of 8.0% of the subsequent year’s budgeted expenditures must be maintained as a contingency fund for unanticipated financial needs. In addition, 0.5% of the subsequent year’s budgeted expenditures must be maintained to fund unanticipated retirements of employees residing in General Fund departments. Budgeted appropriations will maintain these minimum reserves of 8.5% of subsequent year’s budgeted expenditures, with excess reserves available for specific capital improvement projects or other “one-time” needs. Stabilization arrangement. As of September 30, 2018, the City Council has not established a revenue stabilization reserve. I.D.12. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from the estimates. I.E. Adoption of new GASB pronouncements During the fiscal year ended September 30, 2018, the City implemented the following GASB pronouncements: GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Issued in June 2015, this statement addresses accounting and financial reporting for other postemployment benefits (OPEB) provided to the employees of state and local governmental employers, and establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expenses. Beginning net position was restated to increase the OPEB liability in the amount of $9,061,226, and to establish a deferred inflow of $1,029,325 as of October 1, 2017 (see Note IV.I.). The Schedule of Changes in Long-Term Liabilities in Note III.F.5. reflects restated beginning balances for the OPEB liability, an increase of $6,300,816 in the Governmental Activities and an increase of $2,760,410 in the Business-Type Activities. GASB Statement No. 81, Irrevocable Split-Interest Agreements. Issued in March 2016, this statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement; that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests; and that a government recognize revenue when the resources become applicable to the reporting period. The City is not a party to any split-interest agreements; therefore, the provisions of this statement do not apply. GASB Statement No. 83, Certain Asset Retirement Obligations. Issued in November 2016, this statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. The City does not have any legally enforceable liabilities associated with the retirement of capital assets; therefore, the provisions of this statement do not apply. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 51 GASB Statement No. 85, Omnibus 2017. Issued in March 2017, this statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). The City does not have blended component units, goodwill, real estate held by insurance entities, money market investments or participating interest-bearing investment contracts; therefore, the provisions of Statement 85 related to these topics do not apply. The City measures the OPEB liability as of the fiscal year ending date (reporting date), and all expenditures are measured for the same reporting period. The City estimates covered-employee payroll as the payroll of employees that are provided with OPEB through the OPEB plan, including employees terminating during the measurement period, based on data collected for the January 1 actuarial valuation. GASB Statement No. 86, Certain Debt Extinguishment Issues. Issued in May 2017, this statement requires that debt be considered defeased in substance when a government places cash and other monetary assets acquired with only existing resources in an irrevocable trust to extinguish the debt, and that in financial statements using the economic resources measurement focus, governments should recognize any difference between the reacquisition price (the amount required to be placed in the trust) and the net carrying amount of the debt defeased in substance using only existing resources as a separately identified gain or loss in the period of the defeasance. The City has not defeased any bonds with only existing resources; therefore, the provisions of this statement do not apply. GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. Issued in June 2018, this statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. The City capitalized interest in the Water and Sewer Utility enterprise fund, the Gas Utility enterprise fund, and the Stormwater Utility enterprise fund through September 30, 2017. Note II – Stewardship, Compliance, and Accountability II.A. Budgets and budgetary accounting Annual budgets are legally adopted for the General Fund, Special Development special revenue fund, and the Community Redevelopment Agency special revenue fund. The budget for the Special Development Fund is adopted on a basis consistent with GAAP, and appropriations lapse at year-end. Appropriations for open encumbered purchase orders at year-end in the General Fund do not lapse, but rather continue until liquidated or otherwise cancelled by City Council action. For the General Fund budgetary comparison statements, actual expenditures have been adjusted to include end-of-year encumbrances and to exclude beginning-of-year encumbrances, in order to provide a meaningful comparison. Except for the treatment of encumbrances and certain transactions relating to interfund loans, the General Fund Budget is adopted on a basis consistent with GAAP, and all non-encumbered appropriations lapse at year-end. The level of budgetary control established by the legislative body, the level on which expenditures may not legally exceed appropriations, is the individual fund. In accordance with provisions of Ordinance 5025-90 and with Section 2.519(4) of the Clearwater Code, the City Manager may transfer part or all of any unencumbered appropriation balance among programs within an operating fund, provided such action does not result in the discontinuance of a program. Such transfers must be included in the next budget review presented to the City Council. Upon detailed written request by the City Manager, the City Council may by ordinance transfer part or all of any unencumbered appropriation balance from one fund to another. As established by administrative policy, department directors may transfer money from one operating code to another within a program without a formal written amendment. Formal requests for budget amendments from department directors are required for transfers, capital expenditures, and reserves. Thus, certain object classifications within departmental and/or program budget appropriations are subject to administratively imposed controls, in addition to the legal controls imposed by City Council action described above. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 52 The Community Redevelopment Agency (CRA) Fund annual budget is adopted by the trustees of that agency in accordance with state law. The level of budgetary control is the total fund. The CRA Fund Budget is adopted on a basis consistent with GAAP, and all appropriations lapse at year-end. Budget amounts presented in the accompanying financial statements reflect all amendments adopted by the City Council and the governing board of the component unit. All amendments were adopted in conformance with legal requirements. Individual amendments, as well as the net effects of all amendments during the fiscal year, were not material in relation to the original appropriations for the governmental funds in the aggregate. Budgets for the Capital Projects Funds, the Special Programs Fund, the SHIP Local Housing Assistance Trust Fund, and the Pinellas County Local Housing Assistance Trust Fund are adopted on a multi-year completed program basis, where budgetary appropriations do not lapse at year-end, but may extend across two or more fiscal years. A comparison of annual results with these budgets would not be meaningful and is therefore not included in this report. All City Council adopted budgets are integrated into the formal accounting system to allow for monthly comparison of projected and actual results in all funds for which budgets are adopted. Note III – Detailed Notes on All Funds III.A. Deposits and investments Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The majority of the investments in which the City's proprietary funds have equity are held by the City's consolidated pool of cash and investments. Since fund equities in this cash management pool have the general characteristics of demand deposits, in that additional funds may be deposited at any time, and funds may be withdrawn at any time without prior notice or penalty, each fund's equity account is considered a cash-equivalent regardless of the maturities of investments held by the pool. Funds with deficit (overdraft) positions within the consolidated pool report the deficits as interfund payables to the City's Capital Improvement Fund. Fair Value The City of Clearwater and the City’s pension plans categorize fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the securities and assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 are significant unobservable inputs. Certain investments held by the City and the pension plans are valued at net asset value (NAV) per share when an investment does not have a readily determined fair value, provided that the NAV is calculated and used as a practical expedient to estimate fair value in accordance with GAAP requirements. Equity and Fixed Income Securities – Equity securities, classified in Level 1 of the fair value hierarchy, are valued using prices quoted in active markets issued by pricing vendors for these securities. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the City’s custodian bank, Bank of America, for the City’s pooled cash investments. Prices for pension investments are obtained by the custodial agents for each of the pension plans. Debt and equity securities classified in Level 2 of the fair value hierarchy are valued using prices determined by matrix pricing techniques maintained by various pricing vendors for these securities. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Debt and equity securities classified in Level 3 of the fair value hierarchy, when applicable, are securities whose stated market price is unobservable by the marketplace; often these securities are priced by the issuer or industry groups. Real Estate Funds – Investments in real estate funds are valued at estimated fair value, as determined in good faith by the General Partner (GP). These investments are initially valued at cost with subsequent adjustments that reflect third party transactions, financial operating results, and other factors deemed relevant by the GP. These assets are valued at NAV. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 53 Deposits All cash of the City is entirely insured either by federal depository insurance or via banks’ participation as qualified public depositories pursuant to Florida Statutes, Chapter 280, “Security for Public Deposits”. The City is required to verify that monies are invested in “qualified public depositories” as defined in Florida Statutes section 280.02. Pooled Cash and Investments To increase returns and minimize fees, the City follows the practice of pooling available cash and investments of all funds, with the exception of retirement plan investments and assets held under Bond Trust Indenture Agreements. Please refer to Note (I)(D)(1) for a discussion of allowable investments under the pooled cash and investments investment policy. All investments at year-end were in compliance with the pooled cash and investments investment policy. Pooled cash and investments as of September 30, 2018 are classified in the accompanying financial statements as follows: Statement of net position 9/30/2018 Primary Government: Cash and investments 393,517,898$ Restricted cash and investments 40,614,917 Fiduciary Funds: Cash and investments-agency fund 453,926 Total pooled cash and investments 434,586,741$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 54 Carrying % of Pooled Cash and Investments Amount Portfolio Less than 1 1-3 Years More than 3 Moody's Rating Cash and cash equivalents: Cash on hand 39,551$ 0.01% N/A Time / interest bearing account 5,924,361 1.36% N/A Total cash and cash equivalents 5,963,912 Investments:Standard & Local Government Investment Pools:Poor's Rating Florida Safe Investment Pool 4,139,259 0.95% 4,139,259 - - AAAm Florida Cooperative Liquid Assets Securities System 61,333,945 14.11% 61,333,945 - - AAAm - 70,319,988 65,473,204 4,846,784 - Moody's Rating Treasuries 5,962,617 1.37% 1,003,828 - 4,958,789 N/A U.S. Agencies: Federal Home Loan Bank (FHLB) 46,356,912 10.67% 4,972,165 25,333,663 16,051,084 Aaa Federal National Mortgage Assn (FNMA) 48,697,109 11.21% 9,896,850 38,800,259 - Aaa Federal Farm Credit Bank (FFCB) 39,099,005 9.00% 4,944,315 4,929,300 29,225,390 Aaa Federal Home Loan Mortgage Corp (FHLMC) 122,351,500 28.15% 9,923,770 63,517,905 48,909,825 Aaa Federal Home Loan Mortgage Corp Zeroes 1,764,559 0.41% - - 1,764,559 Aaa Dept of Housing and Urban Development (HUD) 170,918 0.04% 170,918 - - Aaa Federal National Mortgage Assn (FNMA) Zeroes 8,988,502 2.07% - - 8,988,502 Aaa Farmer Mac (FAMCA) 3,530,685 0.81% - - 3,530,685 Aaa Tennessee Valley Authority (TVA) Zeroes 2,615,239 0.60% - 2,615,239 - Aaa Total U.S. Agencies 273,574,429 29,908,018 135,196,366 108,470,045 Municipal bonds 5,735,195 1.32% 2,791,415 2,943,780 - Aa1/Aa2/Aa3 Municipal bonds 776,938 0.18% 776,938 - - A1/A2/A3 Total municipal bonds 6,512,133 3,568,353 2,943,780 - Mortgage backed securities 70,617,066 16.25% 3,326,371 33,723,018 33,567,677 Aaa Asset backed securities 1,636,596 0.38% 35,267 1,405,273 196,056 Aaa Total investments 428,622,829 103,315,041 178,115,221 147,192,567 Total pooled cash and investments 434,586,741$ 100.00% AAAf Florida Local Government Investment Trust - Short Term Bonds Investment Maturities in Years 4,846,784 1.11% - 4,846,784 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 55 Interest Rate Risk – Pooled Cash and Investments: As a means of limiting exposure to fair value losses arising from rising interest rates, the City’s pooled cash investment policy prohibits investments in securities maturing more than fifteen years from the date of purchase, unless matched to a specific cash flow requirement. Additionally, the policy allows no more than 10% of the portfolio to have maturities in excess of ten years unless specifically matched against a debt or obligation. Finally, the investment policy states that it is the City’s intent to keep the weighted average maturity to three years or less, except for temporary situations due to market conditions and/or cash needs when the average maturity may exceed three years but shall not exceed five years. Weighted average maturities for the City’s pooled cash investments are indicated in the table above. Credit Risk – Pooled Cash and Investments: The City’s pooled cash investment policy, in accordance with Florida Statutes, allows investments to direct obligations of the United States, federal agencies, debt issued by the State of Florida or any political subdivision, and commercial paper of prime quality of the highest letter and numerical rating as provided by at least one nationally recognized rating service. Ratings for the City’s pooled cash investments are disclosed in the preceding table. Concentration of Credit Risk – Pooled Cash and Investments: The City’s pooled cash investment policy limits the investment in any one issuer to 40% of the portfolio. Concentrations of the various issuers are disclosed in the preceding table. Fair Value Measurement: The City has adopted the provisions of GASB Statements No. 72 and No. 79 and fully disclosed in the notes to the financial statements the fair value hierarchy and the methods of valuing the related investments as required under generally accepted accounting principles. The City of Clearwater categorizes fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the securities and assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 are significant unobservable inputs. Certain investments held by the City are valued at net asset value (NAV) per share when an investment does not have a readily determined fair value, provided that the NAV is calculated and used as a practical expedient to estimate fair value in accordance with GAAP requirements. Fixed Income Securities – Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the City’s custodian bank, Bank of America, for the City’s pooled cash investments. Debt securities classified in Level 2 of the fair value hierarchy are valued using prices determined by matrix pricing techniques maintained by various pricing vendors for these securities. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. The City has the following recurring fair value measurements as of September 30, 2018: City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 56 Quoted Prices in Significant Active Markets Other Significant Measured for Identical Observable Unobservable at (in thousands)Fair Value Assets (Level 1)Inputs (Level 2)Inputs (Level 3)Net Asset Value U.S. Government securities 5,963$ -$ 5,963$ -$ -$ Federal Agency securities 273,574 - 273,574 - - Municipal obligations 6,512 - 6,512 - - Mortgage backed securities 70,617 - 70,617 - - Asset backed securities 1,637 - 1,637 - - Florida Safe Investment Pool 4,139 - - - 4,139 Florida Cooperative Liquid Assets Securities System 61,334 - - - 61,334 Florida Local Govt. Investment Trust-Short Term Bonds 4,847 - - - 4,847 428,623$ -$ 358,303$ -$ 70,320$ The Florida SAFE Investment Pool (FLSAFE), the Florida Cooperative Liquid Assets Securities System (FLCLASS), and the Florida Local Government Investment Trust – Short Term Bonds (FLGIT-Short Term Bonds), are independent local government investment pools created under the laws of Florida to provide eligible units of local government with investment vehicles to pool their surplus funds. FLSAFE and FLCLASS investment pools are Stable Net Asset Value investment pools rated AAAm by Standard & Poors, while FLGIT – Short Term Bonds pool is a Variable Net Asset Value investment pool rated AAAf by Standard & Poors. The investment advisor and administrator for the FLSAFE investment pool is PMA Financial Network, Inc.; the investment advisor and administrator for the FLCLASS investment pool is Public Trust Advisors, LLC; while Payden & Rygel serves as the investment advisor for the FLGIT Short Term Bonds investment pool and CiviTek as administrator. The three local government investment pools, Florida Safe Investment Pool (FLSAFE), Florida Cooperative Liquid Assets Securities System (FLCLASS), and the Florida Local Government Investment Trust (FLGIT) Short Term Bonds Fund, have no unfunded commitments and all provide same day or next day redemption. The investment strategies of all three prioritize safety of principal and liquidity over return, consistent with the City’s investment strategy, investing in high-quality short- term investments. Pension Plan Assets The City reports four pension funds in the accompanying financial statements. Each of the plans has a separate governing board of trustees, a separate investment policy, and differing investment restrictions/risks. Consequently, each is disclosed separately below. All investments at year-end were in compliance with the respective plan investment policies. Please refer to Note (I)(D)(1) for a discussion of allowable investments under the pension plans. Investments are reported at fair value or net asset value, as disclosed, and are managed by third party money managers. The City’s independent custodian and the individual money managers price each instrument (using various third-party pricing sources) and reconcile material differences. Investments in certain alternative investments are valued using the net asset value (NAV) per shares outstanding. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 57 Employees’ Pension Plan At year-end, the Employees’ Pension Plan cash and investment balances were as follows: Carrying % of Weighted avg Moody's Employees' Pension Plan Cash and Investments Amount Portfolio maturity (years)Rating Cash and cash equivalents: Cash and cash equivalents - pooled cash 3,351,572$ 0.31% N/A N/A Cash in managed investment accounts 22,618,361 2.11% N/A N/A Total cash and cash equivalents 25,969,933 Investments: Government bonds 2,248,206 0.21% AGY Government bonds 74,545,505 6.96% Aaa Government bonds 2,157,502 0.20% A Government bonds 215,000 0.02% Baa Government bonds 398,041 0.04% NR Index linked treasuries 879,538 0.08%22.4 Aaa U.S. agencies 2,150,205 0.20% AGY U.S. agencies 2,991,983 0.28% Aaa U.S. agencies 2,582,268 0.24% Baa Municipal bonds 1,269,288 0.12% Aa Municipal bonds 654,593 0.06% A Municipal bonds 902,889 0.08% Baa Municipal bonds 647,831 0.06% NR Domestic corporate bonds 1,235,162 0.12% Aaa Domestic corporate bonds 3,816,837 0.36% Aa Domestic corporate bonds 22,246,128 2.08% A Domestic corporate bonds 60,897,053 5.68% Baa Domestic corporate bonds 3,794,134 0.35% Ba Domestic corporate bonds 3,015,863 0.28% NR Asset backed bonds 64,828 0.01% AGY Asset backed bonds 7,791,053 0.73% Aaa Asset backed bonds 1,153,353 0.11% NR Other/Rights/Warrants 1,655 0.00% N/A NR Domestic stocks 405,214,802 37.81% N/A N/A International equity securities 126,640,082 11.82% N/A N/A Mortgage backed bonds 104,224,384 9.73% AGY Mortgage backed bonds 60,950 0.01% Aaa Mortgage backed bonds 111,504 0.01% NR International equity mutual funds 37,403,244 3.49% N/A N/A Domestic equity mutual funds 45,600,850 4.26% N/A N/A Infrastructure 36,724,132 3.43% N/A N/A Real Estate/Timber 93,718,176 8.75% N/A N/A Total investments 1,045,357,039 Total cash and investments 1,071,326,972$ 100.00% 33.5 10.9 27.5 15.2 5.8 6.8 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 58 Interest Rate Risk – Employees’ Pension Plan: As a means of limiting exposure to fair value losses arising from rising interest rates, the Employees’ Pension Plan investment policy limits the investment in fixed income investments to no more than 50% of the portfolio. There are no limits related to weighted average maturities due to the long-term nature of pension plan investing. Credit Risk – Employees’ Pension Plan: The Employees’ Pension Plan investment policy limits credit risk by restricting equity investments to corporations that are listed on one of the national or international stock exchanges. Additionally, fixed income corporate bonds must carry an “investment grade” rating as established by one of the nationally recognized rating agencies. At September 30, 2018, the Plan had $3,794,134 invested in domestic corporate bonds that had fallen below investment grade (Ba1 and lower) as the result of investment downgrades, as indicated on the previous table. The respective money managers notified the Plan administrators of the downgrades and the planned courses of action related to these securities on a timely basis, consistent with the policy’s individual manager guidelines. Concentration of Credit Risk – Employees’ Pension Plan: The Employees’ Pension Plan investment policy limits concentration of credit risk by limiting the investment in common stock or capital stock of any one corporation to 3% of the plan equity assets, unless due to a higher percentage included in a nationally recognized market index at least as broad as the Standard and Poor’s Composite Index of 500 companies, or upon a specific finding by the investment committee that such higher percentage is in the best interest of the fund. Additionally, the individual manager guidelines associated with the policy provide further diversification of both equity and fixed income investments to minimize concentration of credit risk. Foreign Currency Risk – Employees’ Pension Plan: Risk of loss arises from changes in currency exchange rates. The Employees’ Pension Plan investment policy does not have a formal policy to limit foreign currency risk, other than a guideline of no more than 25% of the plan assets invested in international equities. The Pension Plan’s exposure to foreign currency risk at September 30, 2018 is as follows: Investment Currency Fair Value Common Stock Euro currency 21,919,793$ Common Stock Japanese yen 16,123,609 Common Stock British pound sterling 10,645,730 Common Stock Swiss franc 5,488,189 Common Stock Hong Kong dollar 4,241,270 Common Stock Australian dollar 1,677,065 Common Stock Singapore dollar 975,738 Common Stock Danish krone 561,963 Common Stock Swedish krona 494,140 Common Stock South Korean won 418,751 Common Stock Norwegian krone 400,564 Total 62,946,812$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 59 Fair Value Measurement: The Employees’ Pension Plan has adopted the provisions of GASB Statement No. 72 and fully disclosed in the notes to the financial statements the fair value hierarchy and the methods of valuing the related investments as required under the generally accepted accounting principles. The City’s independent custodian and the individual money managers price each instrument (using various third-party pricing sources) and reconcile material differences. Investments in certain alternative investments are valued using the net asset value (NAV) per shares outstanding. The Employees’ Pension Plan categorizes fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the securities and assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 are significant unobservable inputs. Certain investments held by the pension plan are valued at net asset value (NAV) per share when an investment does not have a readily determined fair value, provided that the NAV is calculated and used as a practical expedient to estimate fair value in accordance with GAAP requirements. Equity and Fixed Income Securities – Equity securities, classified in Level 1 of the fair value hierarchy, are valued using prices quoted in active markets issued by pricing vendors for these securities. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the City’s custodian bank, Bank of America, for the City’s pooled cash investments. Prices for pension investments are obtained by the custodial agents for each of the pension plans. Debt and equity securities classified in Level 2 of the fair value hierarchy are valued using prices determined by matrix pricing techniques maintained by various pricing vendors for these securities. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Debt and equity securities classified in Level 3 of the fair value hierarchy, when applicable, are securities whose stated market price is unobservable by the marketplace; often these securities are priced by the issuer or industry groups. Real Estate Funds – Investments in real estate funds are valued at estimated fair value, as determined in good faith by the General Partner (GP). These investments are initially valued at cost with subsequent adjustments that reflect third party transactions, financial operating results, and other factors deemed relevant by the GP. These assets are valued at NAV. The Plan has the following recurring fair value measurements as of September 30, 2018: Quoted Prices in Significant Active Markets Other Significant Measured for Identical Observable Unobservable at (in thousands)Fair Value Assets (Level 1)Inputs (Level 2)Inputs (Level 3)Net Asset Value Government bonds 79,564$ -$ 79,564$ -$ -$ Index linked treasuries 880 - 880 - - U.S. agencies 7,724 - 7,724 - - Municipal bonds 3,475 - 3,475 - - Domestic corporate bonds 95,005 - 95,005 - - Asset backed bonds 9,009 - 9,009 - - Other/Rights/Warrants 2 - - 2 - Domestic stocks 405,215 405,215 - - - International equity securities 126,640 126,640 - - - Mortgage backed bonds 104,397 - 104,397 - - Emerging markets mutual funds 37,403 - - - 37,403 Domestic equity mutual funds 45,601 - 45,601 - - Infrastructure 36,724 - - - 36,724 Real Estate/Timber 93,718 - - - 93,718 1,045,357$ 531,855$ 345,655$ 2$ 167,845$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 60 Net Asset Value Investments (in thousands): Money Manager Value Unfunded Commitments Investment Strategy Redemption Restrictions Dimensional $ 37,403 $ - Emerging markets equity collective investment trust seeking long term capital appreciation by investing at least 80% of net assets in equity securities of companies located in emerging market countries. None Multi-Employer Property Trust 49,090 - An open-end commingled real estate equity fund organized as a bank collective trust. Strategy to create top- quality, core, income-producing assets through development, rehab, or acquisition and repositioning of undervalued assets. Quarterly redemptions with 45 days notice. Molpus Woodlands Group Funds III & IV 11,951 1,255 Limited Partnership providing income through acquisition, holding, and distribution of timberland No redemption due to Limited Partnership term of up to 14 years, ending 10/22/2027. Hancock Timberland XI LP 8,182 559 Limited Partnership providing income through acquisition, holding, and distribution of timberland No redemption due to Limited Partnership. Two-year wind-up period begins 12/31/2025 and ends 12/31/2027. IFM Infrastructure 36,724 - Limited Partnership investing in a diversified portfolio of global infrastructure assets, favoring proprietary investment opportunities over competitive bidding processes. Quarterly redemptions with 90 days notice; manager's best efforts within 36 months of end of quarter. USAA U.S. Government Buildings 11,677 - Core plus real estate strategy for acquisition and build-to- suit development of high quality assets leased to agencies of the U.S. Federal and State Governments. Quarterly redemptions with 60 days notice. Intercontinental U.S. Real Estate Investment Trust 12,818 - Primarily investing in high-quality core and core plus properties for stable predictable cash flow and opportunity for capital appreciation. To a lesser degree, additional enhanced-core and value properties to further enhance diversification and return. Quarterly redemptions with 60 days notice. 167,845$ 1,814$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 61 Firefighters’ Relief and Pension Plan At year-end, the Firefighters’ Relief and Pension Plan cash and investment balances were as follows: Carrying % of Weighted avg Moody's Amount Portfolio maturity (years)Rating Cash and cash equivalents: Cash and cash equivalents 1,610,360$ 45.50% N/A N/A Total cash and cash equivalents 1,610,360 Investments: U.S. agency - Federal Agricultural Mortgage Corp (FAMCA) 1,096,321 30.98% 5.62 Aaa U.S. agency - Federal Home Loan Bank (FHLB) 832,485 23.52% 17.92 Aaa Total investments 1,928,806 Total managed cash and investments 3,539,166$ 100.00% Interest Rate Risk – Firefighters’ Relief and Pension Plan: As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighters’ Relief and Pension Plan investment policy stipulates that the Plan does not trade securities and will typically hold securities to maturity. There are no limits related to weighted average maturities due to the long-term nature of pension plan investing. Credit Risk – Firefighters’ Relief and Pension Plan: The Firefighters’ Relief and Pension Plan investment policy limits credit risk by restricting the fixed income investments to investment grade securities, per a nationally recognized ranking agency. Concentration of Credit Risk – Firefighters’ Relief and Pension Plan: The Firefighters’ Relief and Pension Plan investment policy limits concentration of credit risk by limiting the recommended target allocation of the plan to domestic fixed income to 70% of the portfolio, with the remainder of the portfolio allocated to the City’s well-diversified pooled cash portfolio (see above disclosure). There are no additional limitations on concentrations with individual issuers or agencies due to the relatively small portfolio of this closed pension plan. Foreign Currency Risk – Firefighters’ Relief and Pension Plan: The Firefighters’ Relief and Pension Plan investment policy does not permit investment in foreign fixed income or equity securities. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 62 Fair Value Measurement: The Firefighters’ Relief and Pension Plan has adopted the provisions of GASB Statement No. 72 and fully disclosed in the notes to the financial statements the fair value hierarchy and the methods of valuing the related investments as required under the generally accepted accounting principles. The Plan has the following recurring fair value measurements as of September 30, 2018: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets (Level 1)Inputs (Level 2)Inputs (Level 3) Federal agency securities - 1,928,806$ - Police Supplemental Pension Plan At year-end, the Police Supplemental Pension Plan cash and investment balances were as follows: Carrying % of Weighted avg Moody's Amount Portfolio maturity (years)Rating Cash and cash equivalents: Cash in bank 4,367$ 0.02% N/A N/A Cash in managed investment accounts 1,072,575 5.76% N/A N/A Total cash and cash equivalents 1,076,942 Investments: Domestic equity mutual funds 10,417,369 55.91%N/A N/R International equity mutual funds 7,136,871 38.31%N/A N/R Total investments 17,554,240 Total managed cash and investments 18,631,182$ 100.00% Interest Rate Risk – Police Supplemental Pension Plan: As a means of limiting exposure to fair value losses arising from rising interest rates, the Police Supplemental Pension Plan investment policy limits the duration of the fixed income portfolio to 125% of the duration of the Barclays Intermediate Government/Credit Bond Index subject to quarterly review. Additionally, no issues, Treasury, or Corporate Bonds may be purchased with more than 15 years to maturity. Credit Risk – Police Supplemental Pension Plan: The Police Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to corporations that are listed on any one or more of the recognized national stock exchanges. Additionally, fixed income security investments are limited to U.S. Government and agency obligations; “BBB” rated or higher corporate bonds, debentures City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 63 and preferred stocks; and bonds and other evidence of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state, or organized territory of the United States or District of Columbia provided the corporation meets the standards set forth in section 185.06(1)(b), Florida Statutes, as amended from time to time. Finally, the investment policy requires that investment managers dispose of any issue that has been downgraded below “BBB” as soon as is economically feasible. Concentration of Credit Risk – Police Supplemental Pension Plan: The Police Supplemental Pension Plan investment policy limits concentration of credit risk by limiting the stock position of the equity portfolio to no more than 3 percentage points in excess of the S&P 500. Additionally, any sector position of the equity portfolio may not exceed the S&P 500 sector weighting by more than 10 percentage points without written approval from the Board. Investments in fixed income securities of a single issuer, with the exception of the U.S. Government and its agencies, may not exceed 5 percent of the fixed income portfolio’s value at cost. Foreign Currency Risk – Police Supplemental Pension Plan: Risk of loss arises from changes in currency exchange rates. The Police Supplemental Pension Plan investment policy does not have a formal policy to limit foreign currency risk, other than a guideline of that no more than 25% of the total portfolio at cost may be invested in foreign securities. The Plan has no current exposure to foreign currency risk. Fair Value Measurement: The Police Supplemental Pension Plan has adopted the provisions of GASB Statement No. 72 and fully disclosed in the notes to the financial statements the fair value hierarchy and the methods of valuing the related investments as required under generally accepted accounting principles. The Plan has the following recurring fair value measurements as of September 30, 2018: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets (Level 1)Inputs (Level 2)Inputs (Level 3) Domestic equity mutual funds 10,417,369$ -$ 10,417,369$ -$ International equity mutual funds 7,136,871 - 7,136,871 - 17,554,240$ -$ 17,554,240$ -$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 64 Firefighters’ Supplemental Pension Plan At year-end, the Firefighters Supplemental Pension Plan cash and investment balances were as follows: Carrying % of Weighted avg Moody's Amount Portfolio maturity (years)Rating Cash and cash equivalents: Cash in managed investment accounts 494,109$ 2.53% N/A N/A Total cash and cash equivalents 494,109 Investments: U.S. Treasury obligations 374,038 1.91% 9.9 Aaa Municipal obligations 94,337 0.48%1.1 N/R Domestic corporate bonds 1,021,413 5.22% A1/A2/A3 Domestic corporate bonds 220,380 1.13% Aaa/Aa1/Aa3 Domestic corporate bonds 699,274 3.57% Baa1/Baa2/Baa3 Domestic corporate bonds 34,568 0.18% N/R International equity securities 25,526 0.13%N/A N/R Domestic stocks 4,402,749 22.51% N/A N/R Mortgage backed bonds 1,336,127 6.83% 35.7 N/R Domestic equity mutual funds 6,497,501 33.21% N/A N/R International equity mutual funds 1,514,706 7.74% N/A N/R Real estate 2,847,987 14.56% N/A N/R Total investments 19,068,606 Total managed cash and investments 19,562,715$ 100.00% 5.5 Interest Rate Risk – Firefighters Supplemental Pension Plan: As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighters Supplemental Pension Plan investment policy limits the duration of the fixed income portfolio to less than 135% of the duration of the Bloomberg Barclay’s Capital Aggregate Bond Index. Credit Risk – Firefighters Supplemental Pension Plan: The Firefighters Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to securities that are fully and easily negotiable. Investments in corporations whose stock has been publicly traded for less than one year are limited to 15% at cost value of the equity portfolio. Investment in equity securities whose market capitalization is less than $10 billion dollars shall be limited to 25% of the total equity portfolio. The average credit quality of the bond portfolio shall be “A” or higher, and those securities rated below “BBB” shall not exceed 15% of the entire fixed income portfolio. Concentration of Credit Risk – Firefighters Supplemental Pension Plan: The Firefighters Supplemental Pension Plan investment policy limits concentration of credit risk by limiting the investment in common stock or capital stock of any one issuing company within an investment manager’s portfolio to 5% of the portfolio. Similarly, no more than 5% at cost value of a fixed income investment manager’s portfolio may be invested in the securities of any single corporate issuer per the plan investment policy. Finally, investments in collateralized mortgage obligations are limited to 25% of the fair value of the investment manager’s total portfolio. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 65 Foreign Currency Risk – Firefighters Supplemental Pension Plan: Risk of loss arises from changes in currency exchange rates. The Firefighters Supplemental Pension Plan requires that no more than 25% of the market value of the plan’s total assets may be invested in foreign equity securities, commingled or mutual funds. Direct investment in foreign companies is limited to those traded on a national exchange and/or American Depository Receipts (ADR’s). Fair Value Measurement: The Firefighters Supplemental Pension Plan has adopted the provisions of GASB Statement No. 72 and fully disclosed in the notes to the financial statements the fair value hierarchy and the methods of valuing the related investments as required under generally accepted accounting principles. The Plan has the following recurring fair value measurements as of September 30, 2018: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets (Level 1)Inputs (Level 2)Inputs (Level 3) U.S. Treasury obligations 374,038$ 374,038$ -$ -$ Municipal obligations 94,337 - 94,337 - Domestic corporate bonds 1,975,635 - 1,975,635 - International equity securities 25,526 25,526 Domestic stocks 4,402,749 4,402,749 - - Mortgage backed bonds 1,336,127 1,336,127 - - Domestic equity mutual funds 6,497,501 6,497,501 - - International equity mutual funds 1,514,706 - - 1,514,706 Real estate 2,847,987 - - 2,847,987 19,068,606$ 12,635,941$ 2,069,972$ 4,362,693$ III.B. Receivables Receivables as of year-end for the City’s governmental, proprietary and internal service funds, including the applicable allowances for uncollectible accounts for the proprietary funds, are segregated on the fund financial statements. Mortgages, Notes, and Other Loans in the amount of $4,845,449 are reported on the Governmental Funds Balance Sheet, net of an allowance for uncollectible accounts in the amount of $12,445,097. The gross receivable of $17,290,546 includes $545,238 of long-term loans receivable that are not expected to be collected within the next fiscal year. Mortgage notes receivable and the related payment history are reviewed individually on an annual basis to determine collectability for allowance and bad debt determinations. Receivables as of year-end for the primary government’s individual major funds, as well as non-major funds and internal service funds in the aggregate, are as follows: City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 66 Receivables, net of applicable allowances for uncollectible accounts (amounts in thousands): Franchise Accounts Taxes Fees Interest and Contracts Notes Other Total General fund 1,411$ 944$ 191$ 551$ -$ 95$ 3,192$ Special Development 42 - 145 - - 489 676 Capital Improvement - - 59 - - 9 68 Non-major governmental funds - - 84 - 17,290 165 17,539 Internal service funds - - 256 - - - 256 Total governmental 1,453 944 735 551 17,290 758 21,731 Less: Allowance for uncollectable accounts (272) - - - (12,445) - (12,717) Net governmental receivables 1,181$ 944$ 735$ 551$ 4,845$ 758$ 9,014$ Water and Sewer Utility -$ -$ 341$ 7,410$ -$ 41$ 7,792$ Gas Utility - - 170 3,155 - - 3,325 Solid Waste and Recycling Utility - - 143 2,188 - - 2,331 Stormwater Utility - - 142 2,378 - - 2,520 Non-major enterprise funds - - 88 - - - 88 Total business-type - - 884 15,131 - 41 16,056 Less: Allowance for uncollectable accounts - - - (154) - - (154) Net business-type receivables -$ -$ 884$ 14,977$ -$ 41$ 15,902$ III.C. Capital assets Capital asset activity for the year ended September 30, 2018: Beginning Change in Transfers / Ending Governmental Activities:Balance Estimate Increases Decreases Reclassifications Balance Non-depreciable capital assets: Land 87,325,195$ -$ 257,178$ -$ 6,626$ 87,588,999$ Construction in progress 13,240,050 - 13,208,900 (11,402,458) - 15,046,492 Total non-depreciable capital assets 100,565,245 - 13,466,078 (11,402,458) 6,626 102,635,491 Depreciable capital assets: Buildings 174,141,644 - 4,086,158 (12,872,851) - 165,354,951 Improvements other than buildings 39,545,673 - - - - 39,545,673 Machinery and equipment 96,422,607 - 12,491,420 (5,667,428) - 103,246,599 Infrastructure 156,853,407 - 1,055,335 - - 157,908,742 Total depreciable capital assets 466,963,331 - 17,632,913 (18,540,279) - 466,055,965 Less accumulated depreciation for: Buildings (77,121,562) (4,337,211) (5,454,095) 11,873,392 - (75,039,476) Improvements other than buildings (20,955,569) (4,367,867) (1,641,386) - - (26,964,822) Machinery and equipment (69,440,643) (736,545) (9,207,381) 5,634,126 - (73,750,443) Infrastructure (99,921,439) (110,515) (4,813,234) - - (104,845,188) Total accumulated depreciation (267,439,213) (9,552,138) (21,116,096) 17,507,518 - (280,599,929) Net depreciable capital assets 199,524,118 (9,552,138) (3,483,183) (1,032,761) - 185,456,036 Net governmental activities capital assets 300,089,363$ (9,552,138)$ 9,982,895$ (12,435,219)$ 6,626$ 288,091,527$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 67 Beginning Change in Transfers / Ending Business-type activities:Balance Estimate Increases Decreases Reclassifications Balance Non-depreciable capital assets: Land 31,745,237$ -$ 230,009$ -$ (6,626)$ 31,968,620$ Construction in progress 12,540,823 - 26,104,278 (5,161,660) - 33,483,441 Total non-depreciable capital assets 44,286,060 - 26,334,287 (5,161,660) (6,626) 65,452,061 Depreciable capital assets: Buildings 47,729,929 - - - - 47,729,929 Improvements other than buildings 663,013,033 - 8,289,306 - - 671,302,339 Machinery and equipment 17,768,379 - 1,275,838 (879,023) - 18,165,194 Total depreciable capital assets 728,511,341 - 9,565,144 (879,023) - 737,197,462 Less accumulated depreciation for: Buildings (9,830,420) (429,176) (1,381,344) - - (11,640,940) Improvements other than buildings (318,664,921) (22,421,852) (17,377,472) - - (358,464,245) Machinery and equipment (9,387,077) (346,487) (1,350,465) 854,170 - (10,229,859) Total accumulated depreciation (337,882,418) (23,197,515) (20,109,281) 854,170 - (380,335,044) Net depreciable capital assets 390,628,923 (23,197,515) (10,544,137) (24,853) - 356,862,418 Net business-type activities capital assets 434,914,983$ (23,197,515)$ 15,790,150$ (5,186,513)$ (6,626)$ 422,314,479$ Depreciation expense was charged to functions / programs of the primary government as follows: Change in Current Year Total Depreciation Estimate Depreciation Expense Governmental activities: General government 1,232,123$ 681,060$ 1,913,183$ Public safety 412,421 1,090,469 1,502,890 Transportation, including depreciation on infrastructure assets 2,802,231 4,885,059 7,687,290 Economic environment 761,213 525,747 1,286,960 Culture and recreation 3,777,728 5,114,079 8,891,807 Capital assets held by governmental internal service funds are charged to the various functions based on their usage of assets 566,422 8,819,682 9,386,104 9,552,138$ 21,116,096$ 30,668,234$ Business-type activities: Water and sewer utility 17,548,826$ 12,773,737$ 30,322,563$ Gas utility 2,469,020 2,644,131 5,113,151 Solid waste and recycling utility 153,026 336,797 489,823 Stormwater utility 2,602,089 3,216,716 5,818,805 Marine operations 36,678 48,880 85,558 Aviation operations 130,546 233,523 364,069 Parking system operations 216,454 519,584 736,038 Clearwater Harbor Marina operations 40,876 335,913 376,789 23,197,515$ 20,109,281$ 43,306,796$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 68 Construction commitments At September 30, 2018, material outstanding construction commitments were as follows: Construction Commitments Project Fund Outstanding Solid Waste Transfer Station Solid Waste & Recycling Enterprise Fund 13,721,852$ Sanitary Sewer Repairs and Replacements Water & Sewer Utility Enterprise Fund 13,707,333 Clearwater Gas System Facility Redevelopment Gas Utility Enterprise Fund 13,089,269 Hillcrest Bypass Culvert Water & Sewer Utility Enterprise Fund 3,721,749 Druid Road/Allen's Creek Stormwater Improvements Stormwater Utility Enterprise Fund 2,032,727 East Gateway Sewer Improvements Water & Sewer Utility Enterprise Fund 1,974,836 Kapok Terrace Sanitary Sewer Improvements Water & Sewer Utility Enterprise Fund 1,939,938 Sidewalks Capital Improvement Fund 1,061,214 East Gateway Stormwater Improvements Stormwater Utility Enterprise Fund 860,490 Reclaimed Water Booster Pump Station Water & Sewer Utility Enterprise Fund 660,405 Street Resurfacing Capital Improvement Fund 596,058 Total Construction Commitments 53,365,871$ III.D. Interfund receivables, payables, and transfers III.D.1. Interfund balances As discussed in Note III-A, individual fund deficits in the consolidated cash pool, if any, have been reclassified as of September 30, 2018, as interfund loans from the Capital Improvement Fund, which was selected by management for this purpose. This reclassification results in a corresponding reduction in the cash equity in the Capital Improvement Fund, offset by an increase in interfund receivables. As of September 30, 2018, there were no funds reporting a cash pool deficit. The amounts of the reclassified cash pool deficits, if any, as well as the current portion of other individual fund interfund payable and receivable balances are classified as Due from/to Other Funds. The long-term portions of other interfund balances are classified as Advances to/from Other Funds. Due from Due to Advances to Advances from Fund Other Funds Other Funds Other Funds Other Funds Special Revenue Funds: Special Programs -$ -$ 325,440$ -$ Community Redevelopment Agency - - - 325,440 Enterprise Funds: Solid Waste & Recycling Fund - 314,562 - 3,185,438 Internal Service Funds: Central Insurance 314,562 - 3,185,438 - 314,562$ 314,562$ 3,510,878$ 3,510,878$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 69 Descriptions of interfund loans as of September 30, 2018: An internal loan from the Special Programs special revenue fund to the Community Redevelopment Agency special revenue fund in the amount of $325,440, approved on September 1, 2011, for the environmental cleanup of the Car Pro site in the East Gateway area of the downtown. This loan is interest-free and is to be repaid upon the sale of the developed parcel. Because the first principal payment is not due within one year, this loan is classified as an advance. An internal loan from the Central Insurance Fund to the Solid Waste/Recycling Utility Fund in the amount of $3.5 million to partially fund the construction of a Solid Waste Transfer Station. This loan provides for 10 equal payments of $396,812, including interest at 2.35%, beginning September 30, 2019 and ending September 30, 2028. The current portion of this loan ($314,562) is due within one year and is therefore classified as due to/due from other funds, while the long-term portion ($3,185,438) is classified as an advance. III.D.2. Interfund transfers Transfers are primarily used to 1) transfer revenues that have been collected in the required fund per state law to the funds and activities that state law allows for expenditures; 2) transfer of “payment in lieu of taxes” contributions from the utility funds to the General Fund; 3) transfer funding from governmental funds to debt service and capital improvements funds; and 4) transfer matching funds from the General Fund to various grant programs. Other non-routine interfund transfers occurring during the current fiscal year included: A transfer of $3,377 from Central Insurance Fund to various funds to recognize safety award funding; a transfer of $5,000,000 from General Fund to Special Programs Fund for the CMA Capital Project Agreement Program to fund the agreement approved by Council on October 19, 2017; a transfer of $235,000 from Special Development Fund to Capital Improvement Fund for the Moccasin Lake Park project; a transfer of $298,521 from Gas Fund to General Fund for an increase in the gas dividend payment; and a transfer of $161,114 from General Fund to Capital Improvement Fund for the Traffic Calming project. Interfund transfers for the year ended September 30, 2018 consisted of the following: City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 70 Transfers to General Fund from: Water & Sewer Utility Enterprise Fund 4,136,160$ Gas Utility Enterprise Fund 2,698,521 Solid Waste & Recycling Utility Enterprise Fund 1,330,990 Stormwater Utility Enterprise Fund 985,740 Nonmajor governmental funds 960,595 Nonmajor enterprise funds 734,202 Internal service funds 1,810 Total 10,848,018 Transfers to Capital Improvement Fund from: General Fund 4,605,726 Special Development Fund 24,065,928 Total 28,671,654 Transfers to Stormwater Utility Enterprise Fund from: Capital Improvement Fund 111,758 Internal service funds 312 112,070 Transfers to Water & Sewer Utility Enterprise Fund from: Capital Improvement Fund 335,862 Transfers to Gas Utility Enterprise Fund from: Internal service funds 660 Transfers to Nonmajor governmental funds from: General Fund 6,906,261 Gas Utility Enterprise Fund 40,000 Nonmajor governmental funds 2,884,977 Total 9,831,238 Transfer to Nonmajor enterprise funds from: Internal service funds 167 Transfers to Internal service funds from: General Fund 1,814,680 Special Development Fund 1,185,242 Capital Improvement Fund 1,121,532 Water & Sewer Utility Enterprise Fund 211,710 Gas Utility Enterprise Fund 146,705 Solid Waste & Recycling Utility Enterprise Fund 395,983 Nonmajor governmental funds 51,733 Nonmajor enterprise funds 109,560 Internal service funds 556,809 Total 5,593,954 Total interfund transfers 55,393,623$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 71 III.E. Leases The City purchases various equipment for governmental and business-type activities under lease purchase financing agreements. The equipment is purchased with cash and subsequently provided as collateral via a “lease purchase” financing arrangement, typically for a five-year term. Obligations under these lease purchase agreements are recorded at the present value of their future minimum lease payments as of date of inception. Purchase of the assets is recorded as a cash outflow and the subsequent receipt of the financing proceeds is recorded as “proceeds from issuance of debt” for Statement of Cash Flows reporting. Capitalized equipment subject to lease purchase financing as of September 30, 2018: Governmental Business-type Activities Activities Equipment 41,516,581$ 1,598,195$ Less: Accumulated Depreciation (13,706,471) (355,134) Total 27,810,110$ 1,243,061$ The future minimum lease payments under capital lease purchase agreements are as follows as of September 30, 2018: Governmental Business-type Year Ending Sept. 30 Activities Activities 2019 8,162,574$ 332,699$ 2020 7,370,452 325,737 2021 5,223,948 290,351 2022 3,402,884 197,549 2023 1,786,349 46,345 2024 252,658 3,987 26,198,865 1,196,668 Deduction of the amount of imputed interest necessary to reduce net minimum lease payments to present value 25,210,660$ 1,149,917$ (988,205) (46,751) The City also leases personal computers under a three-year operating lease that is cancelable on an annual basis. Lease payments for fiscal year ended September 30, 2018, totaled $411,460. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 72 III.F. Long-term debt III.F.1. Revenue Bonds $14,810,000 in Spring Training Facility Revenue Bonds, Series 2002; issued to provide a portion of the costs of the acquisition, construction, rehabilitation and equipping of a spring training facility to be used by the Philadelphia Phillies major league baseball team; serial bonds due in annual installments of $760,000 on March 1, 2019, to $295,000 on March 1, 2022, with maximum principal of $845,000 due March 1, 2021; interest at 4.50% to 5.375%; 5.375% term bonds in the amount of $1,730,000 due March 1, 2027; and 5.375% term bonds in the amount of $1,750,000 due March 1, 2031. $6,185,000 Total revenue bonds for governmental activities 6,185,000 $8,410,000 Water and Sewer Revenue Refunding Bonds, Series 2003; issued to refund and redeem on December 1, 2003, all of the City’s Water and Sewer Refunding Revenue Bonds, Series 1993, maturing after December 1, 2003; serial bonds of $260,000 due December 1, 2018; interest at 4.00%. 260,000 $420,000 Water and Sewer Revenue Bonds, Series 2009A; issued to pay the costs of the design, acquisition, construction, or reconstruction of capital improvements to the City’s water and sewer system; serial bonds of $420,000 due December 1, 2019; interest at 5.00%. 420,000 $41,700,000 Water and Sewer Revenue Refunding Bonds, Series 2009B; issued to currently refund and redeem all of the outstanding principal amount of the City’s Water and Sewer Refunding Revenue Bonds, Series 1998; serial bonds of $5,150,000 due December 1, 2018; interest at 5.00%. 5,150,000 $9,175,000 Water and Sewer Revenue Refunding Bonds, Series 2011; issued to refund and redeem on December 1, 2011 the City’s callable Water and Sewer Revenue Bonds, Series 2002, maturing after December 1, 2011; serial bonds due in annual installments of $1,730,000 on December 1, 2018, to $2,020,000 on December 1, 2021, interest at 5.00%. 7,490,000 $27,520,000 Water and Sewer Revenue Refunding Bonds, Series 2014; issued to refund and redeem the outstanding principal of the City’s Water and Sewer Revenue Bonds, Series 2006, maturing on and after December 1, 2019; term bonds due in annual installments of $160,000 on December 1, 2017, to $2,305,000 on December 1, 2032; interest at 3.18%. 27,045,000 $69,270,000 Water and Sewer Revenue Refunding Bonds, Series 2017; issued to refund and redeem the outstanding principal of the City’s Water and Sewer Revenue Bonds, Series 2009A, maturing on and after December 1, 2020; term bonds due in annual installments of $670,000 on December 1, 2020, to $9,265,000 on December 1, 2039; interest at 3.50% to 5.00%. 69,270,000 $29,080,000 Water and Sewer Revenue Refunding Bonds, Series 2017B; issued to refund and redeem the outstanding principal of the City’s Water and Sewer Revenue Refunding Bonds, Series 2011, maturing on and after December 1, 2022; term bonds due in annual installments of $375,000 on December 1, 2019, to $2,895,000 on December 1, 2032; interest at 2.40%. 29,080,000 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 73 $7,365,000 Gas System Revenue Refunding Bonds, Series 2013; issued to current refund the City’s callable Gas System Revenue Refunding Bonds, Series 2004, maturing after September 1, 2013; term bonds due in annual installments of $395,000 on September 1, 2019, to $1,520,000 on September 1, 2026; interest at 2.41%. 5,510,000 $5,405,000 Gas System Revenue Refunding Bonds, Series 2014; issued to current refund the City’s callable Gas System Revenue Refunding Bonds, Series 2005, maturing after September 1, 2014; term bonds due in annual installments of $265,000 on September 1, 2019, to $2,040,000 on September 1, 2027; interest at 2.67%. 4,395,000 $19,365,000 Stormwater System Revenue Refunding Bonds, Series 2012, issued to pay and redeem all of the Stormwater Revenue Bonds, Series 2002, currently outstanding; serial bonds due in annual installments of $765,000 on November 1, 2018, to $1,350,000 on November 1, 2032, interest at 2.00% to 5.00%. 15,470,000 $11,025,000 Stormwater System Revenue Refunding Bonds, Series 2013; issued to advance refund the City’s callable Stormwater System Revenue Bonds, Series 2004, maturing after November 1, 2014; term bonds due in annual installments of $520,000 on November 1, 2018, to $780,000 on November 1, 2032; interest at 2.98%. 9,485,000 $5,450,000 Stormwater System Revenue Refunding Bonds, Series 2014; issued to advance refund the City’s callable Stormwater System Revenue Bonds, Series 2005, maturing after November 1, 2014; term bonds due in annual installments of $325,000 on November 1, 2018, to $435,000 on November 1, 2029; interest at 2.72%. 4,530,000 Total revenue bonds for business-type activities 178,105,000 Total revenue bonds $184,290,000 III.F.2. Restrictive covenants and collateral requirements The Spring Training Facility Revenue Bonds are special, limited obligations of the City, payable solely from and secured by a lien upon and pledge of the (i) payments received by the City from the State of Florida pursuant to Section 212.20, Florida Statutes (State payments); and (ii) payments received by the City from Pinellas County, Florida pursuant to the Interlocal Agreement dated December 1, 2000 (County payments). The pledge of the State Payments and County Payments does not constitute a lien upon any property of the City. Furthermore, neither the City, Pinellas County, the State of Florida, nor any political subdivision thereof has pledged its faith or credit or taxing power to the payment of the bonds. However, the City has pledged, per a municipal bond insurance debt service agreement, to supplement State and County payments on deposit in the Revenue Fund with non-ad valorem City revenues, if necessary, to pay debt service. The Water and Sewer Revenue Bonds, Series 2009A; and the Water and Sewer Revenue Refunding Bonds, Series 2003, Series 2009B, Series 2011, Series 2014, Series 2017 and Series 2017B; are limited obligations of the City payable solely from and secured by a lien upon and pledge of the net revenues of the City’s water and sewer system (System). The pledge of the System’s net revenues does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix and maintain such rates, and collect such fees, rentals and other charges for the services and facilities of the System and revise the same from time to time whenever necessary, which will provide gross revenues in each fiscal year sufficient to pay the cost of operation and maintenance of the system; one hundred fifteen percent (115%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds; plus one hundred percent (100%) of all reserve and other payments required to be made pursuant to City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 74 the ordinances authorizing the bonds. The City further covenants that such rates, fees, rentals and other charges will not be reduced so as to render them insufficient to provide gross revenues for such purpose. A Reserve Fund has been funded for the 2003, 2009A, 2009B and 2011 bonds. The Gas System Revenue Refunding Bonds, Series 2013 and Series 2014 are limited obligations of the City payable solely from and secured by a lien upon and pledge of the net revenues of the City’s gas system (System). The pledge of the System’s net revenues does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix, establish, revise from time to time whenever necessary, maintain and collect always, such fees, rates, rentals and other charges for the use of the product, services and facilities of the System which will always provide revenues in each year sufficient to pay, and out of such funds pay, 100% of the cost of operations and maintenance of the System in such year and all reserve and other payments provided for in the ordinances authorizing the bonds, along with one hundred twenty five percent (125%) of the bond service requirement due in such year on all outstanding bonds. The Stormwater Revenue Refunding Bonds, Series 2012, Series 2013 and Series 2014, are limited obligations of the City payable solely from and secured by a lien upon and pledge of the net revenues of the City’s stormwater management system (System). The pledge of the System’s net revenues does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix, revise from time to time whenever necessary, and maintain and collect always such fees, rates, rentals and other charges for use of the products, services, and facilities which will always provide net revenues in each year sufficient to pay one hundred fifteen percent (115%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds. The City further covenants that such rates, fees, rentals and other charges will not be reduced so as to render them insufficient to provide revenues for such purpose. Additionally, the covenants of each of the above issues includes a “Reserve Requirement” equal to the lesser of the Maximum Bond Service Requirement for any given year; 125% of the Average Annual Bond Service Requirement; or the largest amount as shall not adversely affect the exclusion of interest on the Bonds from gross income for Federal income tax purposes. A Reserve Fund has been funded for the Series 2012 Bonds. Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending September 30 Principal Interest Principal Interest 2019 760,000$ 302,634$ 9,570,000$ 6,229,943$ 2020 805,000 260,574 6,530,000 5,903,944 2021 845,000 219,927 6,765,000 5,659,500 2022 295,000 193,983 7,020,000 5,394,010 2023 1,730,000 178,719 7,295,000 5,143,013 2024-2028 1,750,000 617,453 42,515,000 21,932,540 2029-2033 - 110,859 40,850,000 15,383,764 2034-2038 - - 39,390,000 7,883,725 2039-2040 - - 18,170,000 734,000 Totals 6,185,000$ 1,884,149$ 178,105,000$ 74,264,439$ Business-type ActivitiesGovernmental Activities City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 75 III.F.3. Pledged revenues State of Florida and Pinellas County Payments Pledged: The City has pledged future revenues derived from payments received from the State of Florida pursuant to Section 212.20, Florida Statutes, and payments from Pinellas County, Florida pursuant to an Interlocal Agreement, together with any investment income earned on the revenues, to repay $14.8 million in Spring Training Facility Revenue bonds issued in September 2002. Proceeds from the bonds provided financing for a portion of the costs of the acquisition, construction, rehabilitation, and equipping of a spring training facility to be used by the Philadelphia Phillies major league baseball team. The bonds are payable solely from the State of Florida and Pinellas County, Florida payments and are payable through March 2031. Annual principal and interest payments on the bonds are expected to require less than 100 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $8,069,149. Principal and interest paid for the current year and total revenue received were $1,067,543 and $1,083,728, respectively. Water and Sewer Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater, Florida, Water & Sewer Utility, defined as all income or earnings, including any income from the investment of funds, derived by the City from the operation of the utility after deduction of current expenses for the operation, maintenance and repair of the system, but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for depreciation to repay: $8.4 million in Water & Sewer Revenue Refunding bonds issued in October 2003. Proceeds from the bonds provided financing to refund and redeem the City’s then outstanding Water and Sewer Revenue Refunding Bonds, Series 1993. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2018. $67.7 million in Water & Sewer Revenue bonds issued in May 2009. Proceeds from the bonds provided financing for the costs of design, acquisition, construction or reconstruction of capital improvements to the City’s water and sewer system. The bonds are payable solely from the Water and Sewer Utility net revenues and, after a partial refunding in February 2017, are payable through December 2019. $41.7 million in Water and Sewer Revenue Refunding bonds issued in May 2009. Proceeds from the bonds provided financing to refund and redeem the City’s then outstanding Water and Sewer Revenue Refunding Bonds, Series 1998. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2018. $47.0 million in Water and Sewer Revenue Refunding bonds issued in September 2011. Proceeds from the bonds provided financing to refund and redeem the outstanding principal maturing after December 1, 2011 of the City’s Water and Sewer Revenue Bonds, Series 2002. The bonds are payable solely from the Water and Sewer Utility net revenues and, after a partial refunding in September 2017, are payable through December 2021. $27.5 million in Water and Sewer Revenue Refunding bonds issued in December 2014. Proceeds from the bonds provided financing to refund and redeem the outstanding principal maturing on and after December 1, 2019 of the City’s Water and Sewer Revenue Bonds, Series 2006. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2032. $69.3 million in Water and Sewer Revenue Refunding bonds issued in February 2017. Proceeds from the bonds provided financing to refund and redeem the outstanding principal maturing on or after December 1, 2020 of the City’s Water and Sewer Revenue Bonds, Series 2009A. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2039. $29.1 million in Water and Sewer Revenue Refunding bonds issued in September 2017. Proceeds from the bonds provided financing to refund and redeem the outstanding principal maturing on or after December 1, 2022 of the City’s Water and Sewer Revenue Refunding Bonds, Series 2011. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2032. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 76 Annual principal and interest payments on the bonds are expected to require less than 85 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $203,788,953. Principal and interest paid for the current year ($12,166,112) required 32.66% of total net revenue ($37,254,646). Stormwater Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater, Florida, Stormwater Utility defined as all income or earnings, including any income from the investment of funds, derived by the City from the operation of the utility after deduction of current expenses for the operation, maintenance and repair of the system, but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for depreciation to repay: $19.4 million in Stormwater Revenue Refunding bonds issued in February 2012. Proceeds from the bonds provided sufficient funds to be available on March 5, 2012 to pay and redeem the City’s outstanding Stormwater Revenue Bonds, Series 2002. The bonds are payable solely from the Stormwater Utility net revenues and are payable through November 2032. $11.0 million in Stormwater Revenue Refunding bonds issued in June 2013. Proceeds from the bonds provided sufficient funds to pay and redeem the City’s Stormwater Revenue Bonds, Series 2004, maturing after November 1, 2014. The bonds are payable solely from the Stormwater Utility net revenues and are payable through November 2032. $5.4 million in Stormwater Revenue Refunding bonds issued in August 2014. Proceeds from the bonds provided sufficient funds to pay and redeem the City’s Stormwater Revenue Refunding Bonds, Series, 2005, maturing after November 1, 2014. The bonds are payable solely from the Stormwater Utility net revenues and are payable through November 2029. Annual principal and interest payments on the bonds are expected to require less than 60 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $37,134,013. Principal and interest paid for the current year ($2,540,796) required 23.95% of total net revenue ($10,607,279). Gas System Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater, Florida, Gas System Utility defined as all income or earnings, including any income from the investment of funds, derived by the City from the operation of the utility after deduction of current expenses for the operation, maintenance and repair of the system, but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for depreciation to repay: $7.4 million in Gas System Revenue Refunding Bonds issued in June 2013. Proceeds from the bonds provided financing to refund the outstanding principal of the Gas System Revenue Refunding bonds, Series 2004. The bonds are payable solely from the Gas System Utility net revenues and are payable through September 2026. $5.4 million in Gas System Revenue Refunding Bonds issued in June 2014. Proceeds from the bonds provided financing to refund the outstanding principal of the Gas System Revenue Refunding bonds, Series 2005. The bonds are payable solely from the Gas System Utility net revenues and are payable through September 2027. Annual principal and interest payments on the bonds are expected to require less than 60 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $11,446,473. Principal and interest paid for the current year ($916,479) required 6.19% of total net revenue ($14,812,426). City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 77 III.F.4. Advance refunding of bonds On February 28, 2017, the City issued at a premium $69,270,000 of Water & Sewer Revenue Refunding Bonds, Series 2017, for the purpose of advance refunding and redeeming on December 1, 2019, $67,295,000 principal of Water & Sewer Revenue Bonds, Series 2009A, maturing on or after December 1, 2020. The net proceeds in the amount of $75,014,549 (after payment of $553,863 plus additional cash of $1,394,248 from released debt service reserve escrow), were deposited into an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded bonds. The refunding transaction resulted in an aggregate debt service reduction in the amount of $11,505,504 and an economic gain (difference between the present value of the debt service payments on the old and new debt) of $6,335,204. The outstanding principal of the refunded bonds was $67,295,000 at September 30, 2018. On September 21, 2017, the City issued at a discount $29,080,000 of Water & Sewer Revenue Refunding Bonds, Series 2017B, for the purpose of advance refunding and redeeming on December 1, 2021, $30,465,000 principal of Water & Sewer Revenue Refunding Bonds, Series 2011, maturing on or after December 1, 2022. The net proceeds in the amount of $34,708,045 (after payment of $91,402 plus additional cash of $5,792,147 from released debt service reserve escrow), were deposited into an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded bonds. The refunding transaction resulted in an aggregate debt service reduction in the amount of $9,757,105 and an economic gain (difference between the present value of the debt service payments on the old and new debt) of $2,336,358. The outstanding principal of the refunded bonds was $30,465,000 at September 30, 2018. A portion of the proceeds of the above-referenced bond issues was deposited into an irrevocable trust with an escrow agent and used to purchase securities of the United States Government and related agencies at various maturities and interest rates sufficient to meet all debt service requirements of the refunded debt. These assets are administered by trustees and are restricted to use for retirement of the refunded debt. The liability for the refunded bonds and the related securities and escrow accounts are not included in the accompanying financial statements as the City defeased its obligation for payment of the refunded debt upon completion of the refunding transactions. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 78 III.F. 5. Changes in long-term liabilities Beginning Balance Ending Due Within (Restated)Additions Reductions Balance One Year Governmental activities: Revenue bonds payable 6,910,000$ -$ (725,000)$ 6,185,000$ 760,000$ Add (subtract) deferred amounts: For issuance premiums (discounts) 103,907 - (16,242) 87,665 - Net revenue bonds payable 7,013,907 - (741,242) 6,272,665 760,000 Lease purchase contracts (a) 21,241,365 11,019,713 (7,050,418) 25,210,660 7,740,620 Compensated absences (b) 8,334,556 4,673,404 (4,596,216) 8,411,744 4,547,586 Other postemployment benefits (c) 18,524,609 1,481,078 (1,118,486) 18,887,201 - Claims payable (d) 11,090,069 16,832,488 (16,941,192) 10,981,365 3,886,565 Governmental activity Long-term liabilities 66,204,506$ 34,006,683$ (30,447,554)$ 69,763,635$ 16,934,771$ Business-type activities: Revenue bonds payable 187,290,000$ -$ (9,185,000)$ 178,105,000$ 9,570,000$ Less deferred amounts: For issuance premiums (discounts) 5,807,256 - (573,237) 5,234,019 - Net revenue bonds payable 193,097,256 - (9,758,237) 183,339,019 9,570,000 Lease purchase contracts (a) 1,141,228 276,994 (268,305) 1,149,917 312,384 Compensated absences (b) 2,097,166 1,330,998 (1,211,303) 2,216,861 1,198,488 Other postemployment benefits (c) 8,115,704 1,058,847 (799,624) 8,374,927 - Business-type activity Long-term liabilities 204,451,354$ 2,666,839$ (12,037,469)$ 195,080,724$ 11,080,872$ (a) Governmental activities lease purchase contract additions of $11,019,713 includes $9,342,713 attributable to internal service funds and $1,677,000 attributable to governmental funds. The lease purchase contracts reduction of $7,050,418 includes $6,504,673 for internal service funds and $545,745 for governmental funds. (b) Compensated absences are paid by the fund where salaries are incurred, which is primarily the General Fund for governmental activities. (c) Since the plan’s inception in fiscal 2008, other postemployment benefits costs are allocated to and paid by funds based on their percentage of full-time equivalent employees, which is primarily the General Fund for governmental activities. (d) The Central Insurance Fund, an internal service fund, accrues for estimated claims and pays claims for all departments. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 79 III.G. Restricted assets Restricted assets are classified as current or noncurrent on the Statement of Net Position based on the underlying liabilities payable from the restricted assets. III.G.1. Water and Sewer Utility Fund Assets in the Water and Sewer Utility Fund restricted for construction include: Sewer Improvement charges, the use of which is restricted by the authorizing ordinance to the construction of additions to the sewer system; assets remaining at September 30, 2018, are: Cash and Investments $2,949,066 Assets of the Water and Sewer Utility Fund restricted under the provisions of the ordinances authorizing the issuance of Water and Sewer Revenue Bonds consisted of the following at September 30, 2018: Water and Sewer Revenue Bonds Debt Service: Cash and Investments 15,450,333 Water and Sewer Revenue Bonds Renewals and Replacements: Cash and Investments 10,751,283 Assets of the Water and Sewer Utility Fund representing Customers' Deposits and therefore restricted, consisting entirely of Cash and Investments at September 30, 2018 3,587,016 Total restricted assets – Water and Sewer Utility Fund $32,737,698 III.G.2. Gas Utility Fund Assets in the Gas Utility Fund restricted under the provisions of the ordinance authorizing the issuance of revenue bonds consisted of the following at September 30, 2018: Gas System Revenue Bonds Debt Service: Cash and Investments $ 75,845 Renewals and Replacements: Cash and Investments 300,000 Assets of the Gas Utility Fund representing Customers' Deposits at September 30, 2018: Cash and Investments 3,099,232 Total restricted assets – Gas Utility Fund $ 3,475,077 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 80 III.G.3. Solid Waste & Recycling Utility Fund Restricted assets in the Solid Waste & Recycling Utility Fund represent customer deposits in the amount of $1,150,666 at September 30, 2018, consisting entirely of Cash and Investments. III.G.4. Stormwater Utility Fund Assets restricted under the provisions of the ordinances for the issuance of revenue bonds consisted of the following at September 30, 2018: Stormwater Revenue Refunding Bonds – Series 2012 Debt Service: Cash and Investments $2,307,781 Stormwater Revenue Refunding Bonds – Series 2013 Debt Service: Cash and Investments 594,439 Stormwater Revenue Refunding Bonds – Series 2014 Debt Service: Cash and Investments 349,256 Total restricted assets – Stormwater Utility Fund $ 3,251,476 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 81 II.H. Fund Balance Classification Special Capital Non-Major General Development Improvement Governmental Fund Fund Fund Funds Non Spendable: Inventories 75,728$ -$ -$ -$ Restricted for: General government - - 3,781,337 95,682 Public safety - - 8,975,644 2,009,465 Physical environment - 18,083 5,286,712 665,089 Transportation - 1,560,884 14,639,807 - Economic environment - - - 16,249,930 Human services - - - 427,260 Culture and recreation - 1,434,789 11,375,053 808,662 Infrastructure capital projects - - - - Committed to: General government - - 499,520 2,242,269 Public safety - - 1,340,029 898,595 Physical environment - - 3,221,652 - Transportation - 296,548 5,425,130 56,279 Economic environment - - - 367,396 Human services - - - 1,462 Culture and recreation - - 5,334,545 145,590 Assigned to: General government 36,223 - - 387,540 Public safety 130,485 - - 482,041 Physical environment 7,310 - - 110,246 Transportation 20,369 - - 9,329 Economic environment 41,376 - - 422,621 Human services - - - 71,065 Culture and recreation 200,212 31,665 70,930 44,954 Infrastructure capital projects - 1,412,502 - - Unassigned 27,176,433 - - - Total Fund Balances 27,688,136$ 4,754,471$ 59,950,359$ 25,495,475$ General Fund assigned fund balance ($435,975) relates to encumbrances. In the Special Development Fund, restricted amounts relate to collections from drainage fees ($18,083), sidewalk fees ($210,541), transportation impact fees ($1,259,774), local option gas tax ($90,569), and recreation impact fees ($1,434,789). Committed amounts relate to the portion of property tax revenues that is set aside in the budget process to provide funding for road maintenance projects ($296,548). Assigned amounts relate to interest earned on recreation impact fees ($31,665) and interest earned on local infrastructure sales tax balances ($1,412,502). City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 82 Amounts in the Capital Improvement Fund all relate to funding for various capital projects. Significant restrictions in the non-major governmental funds include public safety restrictions for law enforcement programs ($1,980,853) and EMS programs ($28,612); physical environment restrictions for tree replacements ($665,089); economic environment restrictions for economic development programs ($1,070,809), low income housing ($8,555,511) and community redevelopment ($6,623,610); and culture and recreation restrictions for debt service ($683,053) and library programs ($125,609). Significant commitments include general government commitments for the Clearwater Marine Aquarium capital agreement ($2,000,000) and consulting services for various general government programs ($242,269); and commitments to public safety for police vehicles ($164,914), emergency operations ($431,211) and law enforcement programs ($302,470). Assigned amounts relate to interest earned on program balances for general government ($387,540), public safety ($482,041), physical environment ($110,246), transportation ($9,329), economic environment ($238,398), human services ($71,065), and culture and recreation ($44,954). Additional amounts assigned for economic environment purposes are for low income housing ($126,211) and community redevelopment ($58,012). Note IV - Other Information IV.A. Risk management The City is self-insured within certain parameters for losses arising from claims for general liability, auto liability, police professional liability, public official’s liability, property damage, and workers' compensation. Insurance coverage has been maintained by the City to pay for or indemnify the City for losses in excess of certain specific retentions and up to specified maximum limits in the case of claims for liability, property damage, and workers' compensation. The liability excess coverage is $7,000,000 per occurrence ($14,000,000 aggregate) with self-insured retention of $500,000. There is workers’ compensation coverage to the statutory limit, with self-insured retention of $600,000. The property damage excess coverage is $100 million per occurrence, except $60 million for the perils of Named Storm (per occurrence), Flood (annual aggregate) and Earth Movement (annual aggregate) after either a $100,000 self-insured retention for perils other than a named storm or 5% self-insured retention for named storm and High Hazard Flood with a $100,000 minimum and a maximum of $5,000,000 any one occurrence. Settled claims have not exceeded excess coverage in any of the past three years. On October 17, 2012, City Council authorized a partial self-insured funding arrangement with Cigna for health insurance effective for the plan year beginning January 1, 2013. Per this arrangement, the City is self-insured for medical and pharmacy claims up to $250,000 per person per year. The City has purchased stop loss insurance from Cigna which covers 50% of individual claims for any amount of the claim between the amounts of $250,000 and $350,000 and covers 100% of individual claims for any amount of the claim exceeding the amount of $350,000 per person per year. In accordance with the fully insured arrangement between the City and Cigna prior to January 1, 2013, the City has no liability for health insurance claims incurred prior to this date. The City estimates a liability for health insurance claims incurred but not yet paid as of September 30, 2018 in the amount of $1,191,365. The transactions relating to the self-insurance program are accounted for in the Central Insurance Fund, an internal service fund. The billings by the Central Insurance Fund to the various operating funds (the interfund premiums) are based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability reported at September 30, 2018, is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 83 Changes in the claims liability amounts in fiscal years 2018 and 2017 were: Self Insurance Balance at September 30, 2016 9,985,005$ Current year claims and changes in estimates 16,321,912 Claims paid (15,216,848) Balance at September 30, 2017 11,090,069 Current year claims and changes in estimates 16,832,488 Claims paid (16,941,192) Balance at September 30, 2018 10,981,365$ IV.B. Statements of cash flows For purposes of the statements of cash flows, investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The majority of the investments in which the City's proprietary funds have equity are held by the City's consolidated pool of cash and investments. Since fund equities in this cash management pool have the general characteristics of demand deposits in that additional funds may be deposited at any time, and funds may be withdrawn at any time without prior notice or penalty, each fund's equity account is considered a cash equivalent regardless of the maturities of investments held by the pool. Funds with deficit (overdraft) positions within the consolidated pool report the deficits as interfund payables to the City's Capital Improvement Fund. IV.D. Employee retirement systems and pension plans IV.D.1. Defined benefit pension plans The City contributes to two separate single-employer, self-administered defined benefit pension plans covering approximately three-fourths of all City employees. The Employees' Pension Plan covers all permanent, full-time City employees who successfully pass the required physical examination, except for firefighters employed prior to July 1, 1963, and certain unclassified (primarily managerial) employees. The Firefighters’ Relief and Pension Plan covered eligible firefighters hired prior to July 1, 1963 and is closed to new entrants. As indicated, both plans are self-administered, and the administrative costs of the plans are financed from the respective plan assets. Each pension fund is accounted for as a pension trust fund; therefore, each is accounted for in substantially the same manner as proprietary funds with an economic resources measurement focus and the accrual basis of accounting. Fund assets, primarily investments, are valued at fair value for balance sheet purposes. Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained from three or more nationally recognized brokers. For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans, and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Detailed information about each plan’s fiduciary net position is available on pages 105-110 and pages 136-137 of this Comprehensive Annual Financial Report. Neither of these plans issues a stand-alone financial report. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 84 The Employees' Pension Plan is authorized by and operates under the provisions of Sections 2.391 through 2.428 of the Municipal Code of the City of Clearwater. Sections 2.391 through 2.401 apply to those participants who attained a vested benefit and terminated employment prior to January 1, 2013. Sections 2.410 through 2.428 apply to those participants who are actively employed by the City of Clearwater as of or after January 1, 2013. Plan provisions have been duly approved as required by the voters in referendums. Since the last valuation, there have been no revisions in benefits and no revisions in actuarial assumptions or methods. Management of the Employees’ Pension Plan is vested in the Clearwater City Council, serving as the Pension Trustees. Plan membership/Employees covered by benefit terms. As of the most recent actuarial valuation date, January 1, 2018, the membership of the Employees’ Pension Plan was as follows: Employees' Pension Plan Retirees and beneficiaries currently receiving benefits 1,259 Terminated employees entitled to benefits but not yet receiving them 75 Active employees 1,523 Total number of participants 2,857 Benefits provided. The normal retirement benefit is a monthly benefit equal to 2.75% of average monthly compensation (2.00% for participants in non-hazardous duty hired on or after January 1, 2013) for the highest five of the final ten years of service multiplied by the number of years of service to date of retirement. Eligibility for normal retirement occurs upon completion of 10 years of service and the attainment of age 65, or completion of 20 years of service and the attainment of age 55, or completion of 30 years of service regardless of age, for employees hired before January 1, 2013 who are engaged in non- hazardous duty. For employees hired on or after January 1, 2013 who are engaged in non-hazardous duty, eligibility for normal retirement occurs upon completion of 25 years of service and attainment of age 60 or completion of 10 years of service and attainment of age 65. For those engaged in hazardous duty, eligibility occurs upon completion of 20 years of service or upon completion of 10 years of service and attainment of age 55. For all hazardous duty participants and non-hazardous duty participants eligible to retire as of January 1, 2013, the normal monthly benefit is payable for the life of the participant and will continue, after the participant's death, to be paid at the same amount for 5 years to the surviving spouse; after 5 years, the survivor annuity is reduced to 50% of the original amount and ceases upon death or remarriage of the spouse. For non- hazardous duty participants not eligible to retire as of January 1, 2013, the normal benefit is a monthly annuity paid for the life of the participant. There are several other benefit payment options that are computed to be the actuarial equivalent of the normal benefit. The plan provides for an annual cost of living increase of up to 1.5% for benefits accrued prior to January 1, 2013. For non-hazardous duty members, there is a five-year delay until the cost of living increase is applied to benefits accrued after January 1, 2013, and for hazardous duty members, there is no cost of living increase for benefits accrued after January 1, 2013. The plan also provides for disability and death benefits, vesting after completion of 10 years of service and the refund of employee contributions in case of a non-vested termination. Covered employees in non-hazardous duty and employees in hazardous duty who are eligible to retire as of January 1, 2013 contribute 8% of their compensation. Covered employees in hazardous duty who are not eligible to retire as of January 1, 2013 contribute 10% of their compensation. It is the City's obligation to provide a sufficient additional contribution to maintain the actuarial soundness of the fund but, in any event, not less than 7% of participating employee’s compensation per the ordinance governing the plan. Contributions. Employer contributions are made in equal installments during the first two quarters of the fiscal year based upon the actuarially determined percentage of payroll and the actual payroll payable at the time contributions are made. The minimum required City contribution is 7% of covered payroll. Member contributions are made continuously throughout the year. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 85 Investment policy. The Employees’ Pension Plan investment policy was adopted by the Pension Trustees on June 13, 2016. The policy requires an annual review by the Pension Investment Committee with a recommendation to the Pension Trustees to confirm or revise. The following was the Trustees’ adopted asset allocation policy as of September 30, 2018: The Employees’ Pension Plan has invested in real estate, timber, and infrastructure limited partnership funds. The strategies of these funds are long term and illiquid in nature. As a result, investors are subject to redemption restrictions which generally limit distributions and restrict the ability of limited partners to exit a partnership investment prior to its dissolution. These investments partnerships are valued using their respective net asset value (NAV) and are audited annually. The most significant input into the NAV of such an entity is the fair value of its investment holdings. These holdings are valued by the general partners on a quarterly or semi-annual basis, in conjunction with management and investment advisors, and consultation with valuation specialists. The management assumptions are based upon the nature of the investment and the underlying business. The valuation techniques vary based upon investment type and involve a certain degree of expert judgment. All timber acquisitions are valued per an independent expert third party appraisal within one year of acquisition and similar independent third-party appraisals of fair value are conducted at least every three years thereafter. The infrastructure fund’s assets are valued by international recognized accounting firms and/or internationally recognized appraisal firms (independent appraisers) on a quarterly basis, with the independent appraisers rotated at three-year intervals. Concentrations. As of September 30, 2018, the Employees' Pension Plan held no investments (other than U.S. Government or U.S. Government guaranteed obligations) in any one organization comprising 5% or more of the net position available for benefits. Rate of return. For the fiscal year ended September 30, 2018, the annual money-weighted rate of return on investments of the Employees’ Pension Plan, net of pension plan investment expense, was 9.69%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Net pension liability (asset). The components of the net pension liability (asset) of the City for the Employees’ Pension Plan at September 30, 2018, were as follows: Total pension liability 939,291,240$ Plan fiduciary net position 1,043,759,224 City's net pension liability (asset) (104,467,984)$ Plan fiduciary net position as a percentage of 111.12% the total pension liability Asset Class Target Allocation U.S. Large Cap Equities 26.00% U.S. Mid Cap Equities 8.00% U.S. Small Cap Equities 5.00% U.S. Core Fixed Income 28.00% International Equities 14.00% Emerging Markets Equities 4.00% U.S. Public Real Estate 1.50% Global Infrastructure & Timber 13.50% 100.00% City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 86 The changes in the net pension liability (asset) of the City for the Employees’ Pension Plan for the year ending September 30, 2018 were as follows: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset) (a) (b) (a) - (b) Balances at 9/30/17 902,629,886$ 980,288,359$ (77,658,473)$ Changes for the year: Service cost 15,065,668 - 15,065,668 Interest 62,567,359 - 62,567,359 Differences between expected and actual experience 6,780,611 - 6,780,611 Assumption changes - - - Contributions - employer - 10,650,462 (10,650,462) Contributions - employee - 7,127,965 (7,127,965) Contributions - state tax - 12,000 (12,000) Net investment income - 93,775,837 (93,775,837) Benefit payments, including refunds of employee contributions (47,752,284) (47,752,284) - Administrative expense - (343,115) 343,115 Net changes 36,661,354 63,470,865 (26,809,511) Balances at 9/30/18 939,291,240$ 1,043,759,224$ (104,467,984)$ Increase (Decrease) Actuarial assumptions. The total pension liability was determined by an actuarial valuation as of January 1, 2018 (Valuation Date), using the following actuarial assumptions, applied to September 30, 2018 (Measurement Date): Inflation 2.50% Salary increases 3.50% to 7.90% depending on service, including inflation Investment rate of return 7.00% net of investment expense The actuarial assumptions used in the January 1, 2018 valuation were based on the results of an experience study of the 5-year period from January 1, 2007 to January 1, 2012. There were no changes to the plan provisions during the year; nor were there changes in actuarial assumptions. Long-term expected rate of return. The long-term expected rate of return on investments of the Employees’ Pension Plan was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. For each major asset class that is included in the pension plan’s target asset allocation as of September 30, 2018, these best estimates are summarized in the following table: City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 87 Long-Term Expected Asset Class Real Rate of Return U.S. Large Cap Equities 4.75% U.S. Mid Cap Equities 5.00% U.S. Small Cap Equities 5.00% U.S. Core Fixed Income 0.75% International Equities 4.75% Emerging Markets Equities 5.50% U.S. Public Real Estate 3.50% Global Infrastructure & Timber 3.75% Discount rate. A single discount rate of 7.00% was used to measure the total pension liability. The single discount rate was based on the expected rate of return on pension plan investments of 7.00%. The projection of cash flows used to determine single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the net pension liability (asset) to changes in the discount rate. The following presents the Employee Pension Plan’s net pension liability (asset), calculated using a single discount rate of 7.00%, as well as what the plan’s net pension liability (asset) would be if it were calculated using a single discount rate that is one percent lower or one percent higher. 1% Discount Rate 1% Decrease Assumption Increase 6.00% 7.00% 8.00% 14,106,958$ (104,467,984)$ (172,541,928)$ Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions. For the year ended September 30, 2018, the City recognized negative pension expense of $3,762,739 for the Employees’ Pension Plan. At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: Deferred Outflows Deferred Inflows Net Deferred Outflows of Resources of Resources of Resources Differences between expected and actual experience 7,809,110$ 5,151,068$ 2,658,042$ Changes in assumptions 215,775 1,717,577 (1,501,802) Net differences between projected and actual earnings on pension plan investments - 44,309,910 (44,309,910) Total 8,024,885$ 51,178,555$ (43,153,670)$ City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 88 Amounts reported as deferred outflows or resources and deferred inflows on resources related to pensions will be recognized in pension expense as follows: Year ended September 30: 2019 (6,904,201)$ 2020 (19,237,544) 2021 (12,778,538) 2022 (4,233,387) 2023 - Thereafter - (43,153,670)$ The Firefighters’ Relief and Pension Plan is authorized and operated under the provisions of Subpart B, Article I (Laws of Florida, Chapter 30658, 1955 and amendments), Sections 1 through 27 of the Municipal Charter and Related Law of the City of Clearwater and Chapter 26, Article III, Sections 26.50 through 26.52 of the Municipal Code of the City of Clearwater. Since the last actuarial valuation as of October 1, 2017, there have been no changes in actuarial assumptions. Management of the Firefighters’ Relief and Pension Plan rests with the Board of Trustees, which consists of the Mayor, the Fire Chief and three members of the Fire Department, which can be either active or retired members of the Firefighters’ Relief and Pension Plan, as stipulated in Chapter 2008-287, Laws of Florida. In the event that no member of the plan is available to stand for election, then a current firefighter of the department below the rank of chief who is willing to serve shall be placed on the ballot. If no one is available to stand for election, or if no one is available to participate in the voting, then members of the Board of Trustees will be appointed by the City Council from membership of the City Council. Plan membership/Employees covered by benefit terms. As of the most recent actuarial valuation date, October 1, 2018, the membership of the Firefighters’ Relief and Pension Plan was as follows: Firefighters' Relief and Pension Plan Retirees and beneficiaries currently receiving benefits 15 Terminated employees entitled to benefits but not yet receiving them - Active employees - Total number of participants 15 Benefits provided. The normal retirement benefit is a monthly benefit in the amount of 50% of the prevailing wage at the date of retirement of the lowest rank held by the participant during the three years immediately preceding retirement plus 2% of such prevailing wage for each year of service in excess of 20 years up to a maximum of 60%. Participants retiring at the age of 65 years are entitled to a benefit of 60% of the prevailing wage of the lowest rank held by the participant during the three years immediately preceding retirement. The ending rate of pay specified above may not exceed the highest rate of pay for the rank of Captain. Eligibility for normal retirement occurs upon completion of 20 years of service or attainment of age 65. The monthly benefits are payable for the life of the participant and continue, after the participant's death, to be paid to certain eligible surviving beneficiaries at an amount that is one-half of the amount received by the participant. Benefits are also provided for children of the deceased participant who are less than 18 years of age subject to certain limitations as to amount. The plan also provides for disability and death benefits and for vesting upon completion of at least 12 years of service. The plan provides for post-retirement cost of living increases equal to the increase in the prevailing wage for the rank at which the participant retired with a limitation for those retiring on or after January 1, 1972, of 100% of the initial pension benefit for total cost of living increases. Participating employees are required to contribute 6% of their City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 89 salaries up to the equivalent of the salary of a fireman holding the rank of Captain. Effective with the fiscal year ended September 30, 2007, the Firefighters’ Relief and Pension Plan, with no remaining active members (only retirees), is fully funded per the requirements of the governing Ordinance. The City may elect to contribute should future valuations show an actuarial need for such. Contributions. Effective with the fiscal year ended September 30, 2007, the Firefighters’ Relief and Pension Plan, with no remaining active members (only retirees), was fully funded per the requirements of the governing Ordinance. The City may elect to contribute should future annual valuations show an actuarial need for such. Investment policy. The Firefighters’ Relief and Pension Plan investment policy was adopted on September 28, 2000. It must be reviewed annually by the Board of Trustees. The following was the adopted asset allocation policy as of September 30, 2018: Asset Class Target Allocation Domestic Fixed Income 0 - 70% Pooled Cash 30% - 100% Concentrations. As of September 30, 2018, the Firefighters’ Relief and Pension Plan held no investments (other than U.S. Government or U.S. Government guaranteed obligations) in any one organization comprising 5% or more of the net position available for benefits. Rate of return. For the fiscal year ended September 30, 2018, the annual money-weighted rate of return on investments of the Firefighters’ Relief and Pension Plan, net of pension plan investment expense, was 1.82%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Net pension liability (asset). The components of the net pension liability (asset) of the City for the Firefighters’ Relief and Pension Plan at September 30, 2018, were as follows: Total pension liability 2,709,051$ Plan fiduciary net position 3,566,898 City's net pension liability (asset) (857,847)$ Plan fiduciary net position as a percentage of 131.67% the total pension liability The changes in the net pension liability (asset) of the City for the Firefighters’ Relief and Pension Plan for the year ending September 30, 2018 were as follows: City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 90 Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset) (a) (b) (a) - (b) Balances at 9/30/17 3,162,699$ 3,842,781$ (680,082)$ Changes for the year: Service cost - - - Interest 84,902 - 84,902 Differences between expected and actual experience (205,912) - (205,912) Contributions - employer - - - Contributions - employee - - - Net investment income - 59,255 (59,255) Benefit payments, including refunds of employee contributions (332,638) (332,638) - Administrative expense - (2,500) 2,500 Other changes - - - Net changes (453,648) (275,883) (177,765) Balances at 9/30/18 2,709,051$ 3,566,898$ (857,847)$ Increase (Decrease) Actuarial assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2018 (Valuation Date), using the following actuarial assumptions, applied to September 30, 2018 (Measurement Date): Inflation 2.00% Salary increases N/A Investment rate of return 3.00% net of investment expense Mortality rates for non-disabled males are based on the RP2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB. Mortality rates for non-disabled females are based on RP2000 Generational, 100% Annuitant White Collar, Scale BB. Mortality rates for disabled males are based on 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale. There is no projection of mortality improvement due to the small number of participants and their advanced age. Long-term expected rate of return. Because the Firefighters’ Relief and Pension Plan is limited to investments in fixed income securities and pooled cash, the long-term expected rate of return will approximate the discount rate of 3.00%. Discount rate. A discount rate of 3.00% was used to measure the total pension liability. The discount rate was based on the actuary’s expectation of future yields and consideration of the City’s projection of future weighted yield based on current asset holdings. Sensitivity of the net pension liability (asset) to changes in the discount rate. The following presents the Firefighters’ Relief and Pension Plan’s net pension liability (asset), calculated using a discount rate of 3.00%, as well as what the plan’s net pension liability (asset) would be if it were calculated using a single discount rate that is one percent lower or one percent higher. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 91 1% Discount Rate 1% Decrease Assumption Increase 2.00% 3.00% 4.00% (669,882)$ (857,847)$ (1,024,470)$ Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions. For the year ended September 30, 2018, the City recognized pension expense of $0 for the Firefighters’ Relief and Pension Plan as it is a fully funded plan with no active participants. As such, there are no deferred inflows or deferred outflows of resources related to pensions. IV.D.2. Police Supplemental Pension Fund A supplemental defined contribution pension plan exists for all eligible policemen, which is funded by earmarked revenues received from the State and is administered by the Board of the Police Supplemental Pension Plan. The revenues received from the State are allocated among eligible police officers based on the number of days employed as Clearwater Police Officers. These revenues received from the State of Florida “on-behalf” of the City’s employees, which comprise the plan contributions, totaled $1,046,623 for the year ended September 30, 2018, and are obtained from an eighty-five one hundredths of one percent (0.85%) excise tax on the gross receipts from premiums collected on casualty insurance policies covering property within the City's corporate limits. These monies were recognized as General Fund revenues and General Fund police department expenditures in the current year. The current year contributions represent 5.26% of covered employees’ gross payroll. The fair value of cash and investments at September 30, 2018, totaled $18,626,815. The Police Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.471 through 2.480 of the Municipal Code of the City of Clearwater and Chapter 185 of Florida Statutes. Under the plan provisions, the total monies received during each fiscal year, after payment or provision for all costs and expenses of management and operation of the plan, are allocated to participants based on the total number of shares to which each participant is entitled. Each participant is entitled to one share in the fund for each day of service as a police officer of the City. All police officers, as defined in Section 26.70(g) of the Code of Ordinances of the City of Clearwater, who are elected, appointed, or employed full-time by the City are eligible to participate in the plan. There are no employee contributions to the supplemental plan. Benefits are fully vested for a lump sum distribution after twenty years from the date of hire, with provision for partial vesting after ten or more years under the plan. Accumulated benefits are payable in full in case of death while employed by the City or in case of total and permanent job-related disability. Non-vested participants' account values upon termination of employment during any fiscal year are added to the monies received during that fiscal year for allocation to the remaining participants in the plan based on total days worked. Plan assets, primarily investments, are valued at fair value for balance sheet purposes. Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained from three or more nationally recognized brokers. For the fiscal year ended September 30, 2018, the gross payroll of the covered officers was $19,907,195; the City's total gross payroll for the same period was $95,772,794. Since the entitlement to benefits is based entirely upon the allocation of monies received by the plan to the participants' share accounts, there is no actuarial liability on the part of either the State or the City. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 92 IV.D. 3. Firefighters Supplemental Pension Fund A supplemental defined contribution pension plan exists for all eligible firefighters, which is funded by earmarked revenues received from the State and is administered by the Board of the Clearwater Firefighters Supplemental Pension Plan. The revenues received from the State are allocated among eligible firefighters based on the number of days worked during the previous year. These revenues received from the State of Florida “on-behalf” of the City’s employees, which comprise the plan contributions, amounted to $1,093,344 in the year ended September 30, 2018, and are obtained from a one and eighty- five one hundredths percent (1.85%) excise tax on the gross receipts from premiums collected on property insurance policies covering property within the City's corporate limits. These monies were recognized as General Fund revenues and General Fund fire department expenditures in the current year. The current year contributions represent 6.91% of covered employees’ gross payroll. The fair value of cash and investments at September 30, 2018, totaled $19,562,715. As the plan is described as a money purchase pension plan, whereby contributions are allocated based on the number of days worked during the fiscal year ended September 30, and interest earnings allocated based on the beginning balances in each participant's account, there is no actuarial liability on the part of the State or the City. The Firefighters Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.441 through 2.455 of the Municipal Code of the City of Clearwater and Chapter 175 of Florida Statutes. Eligibility requires two years of credited calendar year service as a firefighter with concurrent participation in the Employees' Pension Plan. There is no employee contribution to the supplemental plan, and benefits are vested for a lump sum distribution at ten years unless there is early retirement, disability or death. Non-vested participants' account values upon termination of employment are reallocated among the remaining participants based on days worked during the previous year. Plan assets, primarily investments, are valued at fair value for balance sheet purposes. Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained from three or more nationally recognized brokers. For the fiscal year ended September 30, 2018, the gross payroll of covered firefighters was $15,813,599; the City's total gross payroll for the same period was $95,772,794. IV.D.4. Pension Plan Financial Statements Separate financial statements are provided in the Notes per the guidance of GASB Statement No. 34 as follows: City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 93 Statement of Fiduciary Net Position: Defined Benefit Defined Contribution Pension Trust Funds Pension Trust Funds Firefighters' Police Firefighters Employees' Relief and Supplemental Supplemental Pension Fund Pension Fund Pension Fund Pension Fund ASSETS Cash and cash equivalents $ 3,351,572 $ 1,610,360 $ 4,367 $ - Managed investment accounts, at fair value: Cash and cash equivalents 22,618,361 - 1,072,575 494,109 Government bonds 79,564,254 - - 374,038 Index linked government bonds 879,538 - - - Agency bonds 7,724,456 1,928,806 - - Municipal bonds 3,474,601 - - 94,337 Domestic corporate bonds 95,005,177 - - 1,975,635 International equity securities 126,640,082 - - 25,526 Domestic stocks 405,214,802 - - 4,402,749 Mortgage backed bonds 104,396,838 - - 1,336,127 Asset backed securities 9,009,234 - - - Other/rights/warrants 1,655 - - - Domestic equity mutual funds 45,600,850 - 10,417,369 6,497,501 International equity mutual funds 37,403,244 - 7,136,871 1,514,706 Infrastructure 36,724,132 - - - Real estate 93,718,176 - - 2,847,987 Total managed investment accounts 1,067,975,400 1,928,806 18,626,815 19,562,715 Securities lending collateral 149,473,650 - - - Receivables: Interest and dividends 3,232,989 27,732 1,411 39,195 Unsettled investment sales 2,236,427 - - - Securities lending earnings 43,672 - - - Due from others 116,173 - - - Total receivables 5,629,261 27,732 1,411 39,195 Total assets 1,226,429,883 3,566,898 18,632,593 19,601,910 LIABILITIES Accounts payable 944,421 - 170,701 - Unsettled investment purchases 32,160,613 - - - Other payables 91,975 - - - Obligations under securities lending 149,473,650 - - - Total liabilities 182,670,659 - 170,701 - FIDUCIARY NET POSITION Net position restricted for pensions $ 1,043,759,224 $ 3,566,898 $ 18,461,892 $ 19,601,910 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 94 Statement of Changes in Fiduciary Net Position: Defined Benefit Defined Contribution Pension Trust Funds Pension Trust Funds Firefighters' Police Firefighters Employees' Relief and Supplemental Supplemental Pension Fund Pension Fund Pension Fund Pension Fund ADDITIONS Contributions: Contributions from employer $ 10,650,462 $ - $ - $ - Contributions from employer - state tax 12,000 - 1,046,623 1,093,344 Contributions from employees 7,127,965 - - - Total contributions 17,790,427 - 1,046,623 1,093,344 Investment income: Net appreciation (depreciation) in fair value of investments 80,265,824 (44,678) 522,036 897,530 Interest 9,536,628 103,933 - 310,804 Dividends 10,126,075 - 44,289 582,437 99,928,527 59,255 566,325 1,790,771 Less investment expenses: Investment management / custodian fees (6,665,985) - (31,106) (115,480) Net income from investment activities 93,262,542 59,255 535,219 1,675,291 Securities lending income: Gross earnings 3,147,789 - - - Rebate paid (2,358,344) - - - Bank fees (276,150) - - - Net income from securities lending 513,295 - - - Total additions 111,566,264 59,255 1,581,842 2,768,635 DEDUCTIONS Benefits and withdrawal payments: Benefits 46,860,103 332,638 2,087,699 2,109,198 Withdrawal payments 892,181 - - - Total benefits and withdrawal payments 47,752,284 332,638 2,087,699 2,109,198 Income (loss) before administrative expenses 63,813,980 (273,383) (505,857) 659,437 Administrative expenses (343,115) (2,500) (18,670) (24,784) Net increase (decrease)63,470,865 (275,883) (524,527) 634,653 Fiduciary net position restricted for pensions Fiduciary net position - beginning 980,288,359 3,842,781 18,986,419 18,967,257 Fiduciary net position - ending $ 1,043,759,224 $ 3,566,898 $ 18,461,892 $ 19,601,910 City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 95 IV.D.5. 401(a) defined contribution plan For all management employees not covered under either of the defined benefit pension plans, the City provides pension benefits through a 401(a) defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are participants from the date of employment and are fully vested upon enrollment. The plan is totally contributory on the part of the City in an amount equal to 15% of compensation on behalf of the City Manager and the City Attorney and 8% of compensation on behalf of all other management contract employees and Assistant City Attorneys. The City makes bi-weekly contributions to the Trust throughout the plan year to meet its funding obligations under the plan. Plan provisions and contribution requirements are established and may be amended by the City Council. The International City Management Association Retirement Corporation (ICMA-RC), the trustee for the defined annuity, offers participants a variety of investment options. The City’s total gross payroll for the fiscal year ended September 30, 2018 was $95,772,794. The Plan members’ payroll for the same period totaled $4,606,107. The City’s contribution, per the above contribution rates, totaled $396,774. IV.D.6. Deferred compensation plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Effective January 1, 1997, Federal legislation converted the Section 457 deferred compensation assets from City assets to employee assets. As a result of these changes, plan assets are no longer subject to the claims of the City’s general creditors. Consequently, these assets are no longer reported in the accompanying financial statements, in compliance with GASB Statement No. 32. IV.E. Post-employment Benefits Other Than Pension (OPEB) The City implemented GASB Statement No. 75 during fiscal year 2018. The statement requires state and local government employers to recognize the net OPEB liability and the OPEB expense on their financial statements, along with the related deferred inflows of resources and deferred outflows of resources. The net OPEB liability is the difference between the total OPEB liability and the plan’s fiduciary net position. Since City’s plan is currently unfunded, the net OPEB liability is equal to the total OPEB liability. The OPEB expense recognized each fiscal year is equal to the change in the total OPEB liability from the beginning of the year to the end of the year, not including the impact of employer contributions, adjusted for deferred recognition of the liability. Plan Description. The City of Clearwater administers a single-employer defined benefit healthcare plan (the “Plan”) that provides medical insurance benefits to its employees and their eligible dependents. Because the City provides a medical plan to active employees of the City and their eligible dependents, the City is also required by Section 112.0801, Florida Statutes, to provide retirees with the opportunity to participate in this Plan. While the City does not directly contribute towards the costs of retiree premiums via an explicit subsidy, the ability of retirees to obtain health insurance coverage at a group rate which includes active employees, constitutes a significant economic benefit to retirees, or an “implicit” subsidy. This implicit subsidy is considered an “other post-employment benefit” (OPEB) obligation of the City. Since the City is currently funding this OPEB obligation on a pay-as-you-go basis, there are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 96 Benefits provided. Benefit provisions for the Plan are established by the City Council and may be amended by the City Council. The retirees pay the full group premium amount for health insurance with no explicit subsidy from the City. Additionally, the City provides and pays for $1,000 of term life insurance for retirees who retired before October 1, 2008. The term life insurance benefit provision was also established, and may be amended, by action of the City Council. Contribution rates for the Plan are established on an annual basis by the City Council. Eligible retirees and their covered dependents receiving benefits contribute 100% of their premium costs for health insurance and 0% of the cost for the $1,000 term life insurance. Employees covered by benefit terms. As of September 30, 2018 (measurement date), the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefits 631 Inactive plan members entitled to but not yet receiving benefits75 Active plan members 1,517 Total plan members 2,223 Total OPEB Liability. The City’s total OPEB liability of $27,262,128 was measured as of September 30, 2018 and was determined by an actuarial valuation as of January 1, 2018. Actuarial assumptions and other inputs. The total OPEB liability in the January 1, 2018 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial cost method Entry age normal Inflation 2.50% Discount rate 3.83% Salary increases 3.5% to 7.9%, depending on service, including inflation Healthcare cost trend rates Based on the Getzen Model, with trend starting at 6.75% and gradually decreasing to an ultimate trend rate of 4.24% plus 0.52% increase for excise tax. The discount rate is based on Fidelity’s “20-Year Municipal GO AA Index” as of the most recent date available on or before the measurement date. Mortality rates are based on the RP-2000 Combined Healthy Participant Mortality Table for active members and the RP- 2000 Mortality Table for Annuitants for non-disabled active members, with mortality improvement projected to all future years from the year 2000 using Projection Scale BB. Rates for Special Risk Class members are a blend of 10% White Collar and 90% Blue Collar (male) and 100% White Collar (female). Rates applicable to members other than Special Risk are a blend of 50% White Collar and 50% Blue Collar (male) and 100% White Collar (female). Mortality rates for impaired (from disability) lives are based on the RP-2000 Disabled Retiree tables and Healthy White Collar tables for males and females. Rates for Special Risk Class members are a blend of 60% Disabled Retiree tables with setback four years (male) and set forward two years (female) and 40% Annuitant While Collar with no setback. Rates applicable to members other than Special Risk have been adjusted to be 100% Disabled Retiree with setback four years (male) and set forward two City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 97 years (female). These are the same rates currently in use for Regular Class and Special Risk Class members of the Florida Retirement System, and are based on the results of a statewide experience study covering the period 2008 through 2013. The changes in the total OPEB liability for the measurement year ending September 30, 2018 were as follows: Total OPEB Liability Balance at 9/30/17 26,640,313$ Changes for the year: Service cost 1,731,394 Interest 974,551 Changes in benefit terms - Differences between expected and actual experience - Changes in assumptions and other inputs (1,029,325) Benefit payments (1,054,805) Net changes 621,815 Balance at 9/30/18 27,262,128$ Changes in assumptions and other inputs reflect a change in the discount rate from 3.50% at the beginning of the measurement period to 3.83% at the end of the measurement period. Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the City’s total OPEB liability calculated using a discount rate of 3.83%, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percent lower or one percent higher. 1% Discount Rate 1% Decrease Assumption Increase 2.83% 3.83% 4.83% 30,626,744$ 27,262,128$ 24,336,392$ Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the City’s total OPEB liability calculated using the current healthcare cost trend rate assumption based on the Getzen Model of 6.75% and gradually decreasing to an ultimate trend rate of 4.24% plus 0.52% increase for excise tax, as well as what the City’s total OPEB liability would be if it were calculated using a trend rate that is one percent lower or one percent higher. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 98 Current Healthcare 1% Cost Trend Rate 1% Decrease Assumption Increase 23,651,271$ 27,262,128$ 31,632,301$ OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB. For the year ended September 30, 2018, the City recognized OPEB expense of $2,539,925. At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows Net Deferred Outflows of Resources of Resources of Resources Changes in assumptions -$ 863,305$ (863,305)$ Total -$ 863,305$ (863,305)$ Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended September 30: 2019 (166,020)$ 2020 (166,020) 2021 (166,020) 2022 (166,020) 2023 (166,020) Thereafter (33,205) (863,305)$ IV.F. Securities lending transactions The City of Clearwater Employees’ Pension Plan participates in securities lending transactions, as authorized by the Pension Trustees on April 14, 2003, via a Securities Lending Authorization Agreement with Northern Trust Company, which is also the pension plan’s custodian. Securities are loaned versus collateral that may include cash, U.S government securities, and irrevocable letters of credit. U.S. securities are loaned versus collateral at 102% of the market value of the securities plus any accrued interest. Non-U.S. securities are loaned versus collateral at 105% of the market value plus any accrued interest. The Plan’s investment policy places no restrictions on the amount of securities that can be loaned. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 99 Non-cash collateral cannot be pledged or sold unless the borrower defaults. All securities loans can be terminated on demand by either the lender or the borrower. The average term for the pension plan’s loans at September 30, 2018 was 73 days. Cash open collateral is invested in a short-term investment pool, NT Coll SL Core S/T Inv Fund, which had an interest sensitivity of 31 days as of September 30, 2018. There were no significant violations of legal or contractual provisions, nor any borrower or lending agent default losses known to the securities lending agent. The Plan did not impose any restrictions on the amount of loans made by Northern Trust during fiscal year 2018. There are no dividends or coupon payments owing on the securities lent. Securities lending earnings are credited to participating clients on approximately the fifteenth day of the following month. Indemnification deals with the situation in which a client's securities are not returned due to the insolvency of a borrower and Northern Trust has failed to live up to its contractual responsibilities relating to the lending of those securities. Northern Trust’s responsibilities include performing appropriate borrower and collateral investment credit analyses, demanding adequate types and levels of collateral, and complying with applicable Department of Labor and Federal Financial Institutions Examination Council regulations concerning securities lending. The following is a summary of securities on loan and their collateral at fair value: Security Type Loaned Securities Cash Collateral Loaned Securities Cash Collateral U.S. Equity 81,832,082$ 83,845,511$ -$ -$ U.S. Corporate Fixed 5,006,034 5,129,901 - - U.S. Government Fixed 56,707,200 57,961,234 - - U.S. Agencies 2,095,181 2,156,372 - - Global Equities 358,613 380,632 - - Total 145,999,110$ 149,473,650$ -$ -$ Securities Collateralized by Non- CashSecurities Collateralized by Cash On the statement of fiduciary net position, a securities lending asset of $149,473,650 was reported that represents the fair value of the investments made with cash collateral at September 30, 2018. In addition, a securities lending obligation of $149,473,650 was reported that represents the collateral that the City is required to maintain to cover the fair value of the loaned securities. IV.G. Contingencies and commitments Loan Guarantee - PACT, Inc. PACT, Inc. is a nonprofit corporation formed in 1978, for the purpose of financing, constructing, and operating a performing arts center. Per a Guaranty Agreement dated May 18, 2001, the City guaranteed $1,000,0000 on a $5,000,000 mortgage note for PACT, Inc., used to refinance a previous mortgage with a similar City guarantee. A Facilities Use Agreement dated March 7, 2001 provided that the City would enter into the Guaranty Agreement. On March 8, 2018, the City entered into an agreement with Ruth Eckerd Hall which terminated the Facilities Use Agreement, and effectively removed the City’s obligation to provide the $1,000,000 loan guarantee. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 100 Loan Guarantee – Chi Chi Rodriquez Youth Foundation, Inc. On March 30, 1992, the City Council approved a contingent loan guarantee of $1,000,000 on a $2,500,000 note for the Chi Chi Rodriquez Youth Foundation, Inc. The proceeds of the note were used to refinance existing foundation debt incurred to construct a golf course on a parcel of City-owned land. Subsequently, the note was refinanced with Variable Rate Demand Revenue Bonds (Chi Chi Rodriquez Youth Foundation Project), Series 1998, on August 1, 1998. In the event of default, the City is obligated to contribute $1,000,000 out of legally available non-ad valorem revenues. In addition, the City has the option to retire the entire unpaid balance and assume ownership and operation of the golf course facility. City management does not consider it probable that this guarantee will be called, and, accordingly, no amounts have yet been accrued or otherwise recorded in the accompanying financial statements to reflect this possibility. Pollution Remediation Claims Liabilities Pursuant to GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, the City is required to analyze known polluted sites to determine future component cost outlays, including estimation where required, for pollution remediation. At September 30, 2017, accruals totaled $391,222, consisting of $224,726 for the Harbor Drive Fill Area site, which was a former landfill area, and $156,496 for assessment and remediation at the Gas Plant site (see the Soil and groundwater contamination site note below), and $10,000 for the City’s share of cleanup costs associated with a petroleum discharge at Lift Station #24 on September 30, 1994. A Site Rehabilitation Completion Order was issued by the FDEP for this site on August 1, 2018. During fiscal year 2018 there was an increase to estimates and contractual commitments in the amount of $216,581, and payments totaled $140,623. At September 30, 2018, accruals totaled $467,180, consisting of $223,934 for the Harbor Drive Fill Area site, $13,384 for the Joe DiMaggio Sports Complex site, and $229,862 for assessment and remediation at the Gas Plant site. In addition to the above sites for which accruals exist, the City has 16 other sites that have known contamination from petroleum products, metals, arsenic, chlorine or coal tar. Ten of these sites are on the State of Florida Petroleum Clean-up Program. A Site Rehabilitation Completion Order was issued for the Atrium Hotel site at 1707 North Fort Harrison Avenue on March 18, 2019; when any of the nine outstanding sites will be scheduled for cleanup cannot be determined at this time. The remaining six sites are under monitoring plans or are awaiting responses from the FDEP on data submitted by the City. Any additional cleanup costs for these sites cannot be estimated at this time. On November 19, 2013, the FDEP approved the certification of closure construction completion of the former fill area at Philip Jones Field. However, this site remains on the list as it includes the Harbor Drive Fill Area. Based on groundwater sampling completed in February 2017, and site assessment previously completed for the site, the City believes that no further site assessment is warranted and is working with the FDEP to bring about site closure and develop of long-term monitoring requirements. Soil and groundwater contamination site The City is the owner of property located at 400 North Myrtle Avenue, Clearwater, Pinellas County, Florida ("Property"). The Property occupies approximately six acres and is currently used by the City Gas Division (“CGS”) as its administrative offices and operating facility. The City operated a manufactured gas plant at the Property from approximately 1929 to 1960. Following the discovery in June 1990 of soil and groundwater impacts at the Property allegedly resulting from the prior operation of the manufactured gas plant, the Florida Department of Environmental Protection ("FDEP") directed the City to implement measures to delineate the area and vertical extent of the impacts at the Property and, if necessary, implement appropriate remedial actions. Contamination assessment activities were initiated at the Property in 1995. On April 17, 1996, the City executed an Intergovernmental Agreement with FDEP, governing the scope of assessment and remediation work performed at the Property. The material terms and conditions of the Intergovernmental Agreement require the City to perform contamination assessment activities to delineate the area and vertical extent of soil and groundwater impacts and, if necessary, to remediate such impacts to the extent required by Florida law. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 101 Field activities to delineate the extent of impacts were performed from 1995 to 2003. The results of the final field work are presented in a Supplemental Assessment Report dated May 2003, in which the City's consultant concluded that field activities to delineate the extent of soil and groundwater impacts were complete and that a risk assessment should be undertaken to evaluate an appropriate remedy for the reported impacts. By letter dated April 19, 2004, FDEP directed the City to install two additional monitoring wells within the source area on site to delineate the vertical extent of groundwater impacts. The City and FDEP previously discussed the potential harm to the underlying aquifer that may result from the installation of monitoring wells through a source area and the underlying clay confining unit during a meeting with FDEP held on November 29, 2003. Based on the advice of its environmental consultant and other specialists consulted concerning this issue, the City has consistently maintained that the installation of the additional monitoring wells requested by FDEP will likely provide a pathway for the migration of impacts into the aquifer underlying the clay confining unit that is otherwise not presently impacted by the former operations of the MGP based on existing perimeter monitoring well data. The City responded to the FDEP by letter dated April 29, 2004, requesting that FDEP advise the City whether the directive to install the additional vertical extent wells was deemed by FDEP to be final agency action that would otherwise be subject to review in an administrative proceeding. The City's April 29, 2004 response included a request for an extension of time to file an administrative proceeding in the event that FDEP deemed the April 19, 2004 FDEP communication to be final agency action. During fiscal 2005, the Myrtle Avenue Utility and Roadway Widening project began, requiring extensive dewatering during construction. Consulting, equipment, laboratory, permitting, and labor costs for dewatering in areas where there was suspected or known contamination from the former MGP plant were charged to the City of Clearwater Gas Division. All activities related to the Myrtle Avenue dewatering project were documented in the “Supplemental Site Assessment Report – North Myrtle Ave Roadway Corridor” dated March 2007. On January 17, 2008, FDEP issued a letter to the City stating FDEP was willing to replace the need for additional vertical delineation wells with periodic sampling of existing deep wells, as long as they remain unaffected by the contaminants of concern on the site. In May 2009, FDEP issued a status report on all Manufactured Gas Plant sites in Florida. In the report it referenced the January 17, 2008 letter and reaffirmed FDEP’s agreement to forego additional on-site vertical delineation if the City continues to monitor the perimeter wells on the facility. On June 22, 2009, the perimeter monitoring wells were tested, and the results were reported to FDEP. On February 3, 2010, FDEP issued a letter that formally accepted Clearwater Gas System’s Contamination Assessment Report (CAR) and required no further site assessment activities. Furthermore, the DEP required CGS to re-sample all monitoring wells on the site within 60 days of the February 3, 2010 letter. In May 2010, CGS issued a Request for Proposal (RFP) to prepare a Feasibility Study, for DEP approval, that would offer a long-term corrective action plan for the gas plant site. Arcadis, Inc. was selected to conduct the Feasibility Study; however, two months into the project the City’s environmental legal counsel recommended an alternate method of site remediation. He proposed that the City work with the University of Waterloo (Canada) to treat the contaminated soils with sodium persulfate, a chemical oxidant, which would stop the off-site groundwater impacts that were experienced on the Pinellas County Health Department site. Chemical oxidation is accepted as a very effective method of dealing with Manufactured Gas Plant residuals. This project was approved by the City Council in January 2011, and was scheduled to last approximately 6 years at an estimated cost of $600,000. In May 2017 it was determined that the University of Waterloo project was not working as originally projected. The sodium persulfate was not oxidizing the source material enough to grant site closure. Therefore, it was determined to abandon the project and look at other remedies for the site. The City’s environmental legal counsel proposed to convert the site to a Brownfield site in order to obtain full site closure. This would be done in conjunction with the site redevelopment of all CGS buildings at 400 North Myrtle Avenue. On December 7, 2018, City Council approved a Brownfield Site Rehabilitation Agreement (BSRA) with the FDEP. Under this agreement, no further active remediation will be required, and the site will be closed with a restrictive covenant to include City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 102 an impervious cap to address remaining soil contamination at the site and prohibit the withdrawal of groundwater for any purpose within the site property. The groundwater use restriction will also be required to be imposed on the adjacent Pinellas County Health Department property. A Site Environmental Management Plan (“SEMP”) was subsequently created to provide guidance to contractors performing work at the site for encountering, handling and managing contaminated soils. In addition, a Remedial Action Plan (“RAP”) was administered in March 2018, which includes the SEMP, and Engineering Control Maintenance Plan and a Declaration of Restrictive Covenant (“DRC”) that will be required by the FDEP to obtain final site closure. Once the CGS redevelopment project is complete in late 2020, the City will request final site closure. Benefits of closing the site under the Brownfield Program include liability projections to the City as set forth in F.S. Section 376.82(2)(a) and the opportunity for the City to obtain voluntary cleanup tax credits (“VCTC”) for the cost of constructing the impervious cap and completion of site closure activities. For eligible costs recovered by the City through VCTC’s, the City will be able to then sell the VCTC’s on the market. Such sales typically net 80-90% recovery for municipalities taking similar actions. The City has pursued insurance claims under certain insurance policies covering the Property for the period from June 1961 through July 1986. On September 17, 2001, the City agreed to reduce its claim against Southern American Insurance Company ("SAIC"), the sole remaining excess carrier with the City, at an undiscounted value of $300,000. In December 2007, the liquidator managing the SAIC liquidation made an initial payment to the City in the amount of $96,000. In September 2008, a second distribution payment of $174,000 was issued to the City. Finally, in December 2009, the City received a payment of $30,000 for a total collection amount of $300,000. In total, the City has recovered $787,500 on all outstanding insurance claims. From 1993 through September 30, 2018, the City has spent $1,612,388 on MGP assessment activities, which includes both environmental consultant and legal fees. Contractual Commitment – Water and Sewer Utility Under the terms of a 30-year contract between the City and Pinellas County, which is effective through September 30, 2035, the maximum amount of water available to the City is 15 million gallons per day on an annual average basis with no minimum quantity purchase requirement. Effective October 1, 2017, the rate, which is set by the Pinellas County Board of County Commissioners (BOCC), was $4.0618 per 1,000 gallons. The rate effective October 1, 2018 is $4.1329 per 1,000 gallons. The cost of water purchased from the County during fiscal years 2017 and 2018 was $7,582,089 and $6,942,125 respectively. Grant Revenues During the current fiscal year and prior fiscal years, the City received revenues and contributions related to grants from the State of Florida, the federal government, and other grantors. These grants are for specific purposes and are subject to review and audit by the grantor agencies. Such audits could result in requests for reimbursement for expenditures disallowed under the terms of the grants. Based upon prior experience, City management believes such disallowances, if any, will not be significant. Encumbrances Encumbrance accounting is used in governmental funds to ensure effective budgetary control and accountability and to facilitate effective cash planning and control. At September 30, 2018, encumbrances expected to be honored upon performance by the vendor in the coming year were: City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 103 General fund 435,975$ Capital Improvement fund 6,962,479 Nonmajor governmental funds 1,439,097 8,837,551$ Tax Abatements In accordance with Chapter 29, Article VII of the Clearwater Code of Ordinances, Article VII, Section 3 of the Constitution of the State of Florida, and Section 196-1995, Florida Statutes, the City Council may grant Economic Development Ad Valorem Tax Exemptions of up to 75 percent of the assessed value of the qualifying property for up to ten years to new businesses and expansions of existing businesses which create employment opportunities that will benefit the entire community. For the fiscal year ending September 30, 2018, the City abated real and tangible personal property taxes totaling $137,043 under this program, consisting of the following agreements: A Business Maintenance and Continued Performance Agreement with Skye Lane Properties, LLC dated January 14, 2014, for the relocation of 54 jobs from St. Petersburg, the creation of 11 new jobs, and the investment of $6.1 million in the expansion of the property, including the renovation of the facility, construction of a tri-level parking deck, and the purchase of new furniture, fixtures and equipment. This agreement, which commenced in fiscal 2016, grants an exemption of ad valorem taxes of 75 percent for the first five years and 50 percent for the next five years. In the event of default, Skye Lane Properties, LLC will be subject to the taxes exempted plus annual interest at the maximum rate allowed by law. Tax abatements since inception total $35,310. A Business Maintenance and Continued Performance Agreement with Instrument Transformers, Inc. dated March 10, 2014 and amended February 11, 2016, for the creation of 143 new jobs and the investment of $49 million in the expansion of the Clearwater facility, including the purchase or lease of new equipment. This agreement, which commenced in fiscal 2017, grants an exemption of ad valorem taxes of 75 percent for ten years. In the event of default, Instrument Transformers, Inc. will be subject to the taxes exempted plus annual interest at the maximum rate allowed by law. Tax abatements since inception total $170,316. IV.H. Pending litigation In the normal course of operations, the City is a defendant in various legal actions, the ultimate resolution of which is not expected to have a material effect on the financial statements, other than for amounts that have been reserved and recorded as liabilities in the Central Insurance Fund. IV.I. Restatement of Prior Year Net Position During the fiscal year ended September 30, 2018, the City implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The objective of this statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). The statement established standards for recognizing and measuring the OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense. In addition to establishing a deferred inflow of resources as described in Note I.D.8, implementation of this statement resulted in a restatement of net position as of October 1, 2017, which decreased the net position of governmental and business-type activities in the amounts of $7,016,568 and $3,073,983, respectively. City of Clearwater, Florida Notes to the Basic Financial Statements For the Year Ended September 30, 2018 104 Governmental Business-Type Activities Activities Beginning net position, as previously reported 463,431,474$ 486,175,246$ OPEB Liability (6,300,816) (2,760,410) Deferred Inflows - OPEB (715,752) (313,573) Restatements related to other postemployment benefits (7,016,568) (3,073,983) Beginning net position, as restated 456,414,906$ 483,101,263$ IV.J. Change in accounting estimate effected by a change in accounting principle During the current year, the City implemented a new financial accounting software program, and it was determined that the City’s depreciation method should be changed from annual to monthly straight line to more accurately reflect the accumulated depreciation and net book value of the City’s depreciable capital assets. In accordance with GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, this change in accounting estimate effected by a change in accounting principle is reported in the current year. This resulted in an increase to current year depreciation expense of $9,552,138 and $23,197,515 in the governmental and business-type activities, respectively. IV.K. Conduit debt The City has one issue of conduit debt outstanding as follows: Original Amount Amount Issue Outstanding Outstanding Description / Purpose Amount at 9/30/17 at 9/30/18 Drew Gardens Refunding Bonds / residential rental facility 3,425,000$ 1,675,000$ 1,525,000$ The bonds do not constitute a debt, liability, or obligation of the City of Clearwater, the State of Florida, or any political subdivision thereof and, accordingly, have not been reported in the accompanying financial statements. IV.L. Deepwater Horizon Oil Spill Following the Deepwater Horizon Oil Spill of April 2010, the City incurred reduced revenues that were determined to be directly or indirectly attributed to the oil spill. On July 13, 2015, the City adopted Resolution 15-18 and accepted a full and final settlement of all claims against BP Exploration and Production, Inc. and others in the amount of $6,480,352, net of $1,658,687 attorney’s fees. As of September 30, 2018, none of the proceeds, which are included in General Fund unassigned fund balance, have been expended. 2018 2017 2016 2015 2014 Total Pension Liability Service Cost $ 15,065,668 14,770,113 $ 15,173,452 $ 14,585,979 $ 14,670,375 Interest on the Total Pension Liability 62,567,359 61,050,474 58,870,815 56,983,247 55,622,257 Difference between Expected and Actual Experience 6,780,611 (8,071,653) 6,832,090 (3,532,969) (11,230,163) Assumption Changes - 381,755 (4,748,597) - - Benefit Payments (46,860,103) (44,490,793) (42,069,828) (39,276,003) (37,118,458) Refunds (892,181) (1,366,008) (1,060,187) (1,000,827) (1,675,419) Net Change in Total Pension Liability 36,661,354 22,273,888 32,997,745 27,759,427 20,268,592 Total Pension Liability - Beginning 902,629,886 880,355,998 847,358,253 819,598,826 799,330,234 Total Pension Liability - Ending (a)$ 939,291,240 902,629,886 $ 880,355,998 $ 847,358,253 $ 819,598,826 Plan Fiduciary Net Position Contributions - Employer $ 10,650,462 11,898,912 $ 13,178,874 $ 14,923,098 $ 18,860,463 Contributions - Non-Employer Contributing Entity 12,000 12,000 12,000 12,000 12,000 Contributions - Employee 7,127,965 7,004,943 6,706,567 6,483,666 7,073,440 Net Investment Income 93,775,837 102,284,783 88,501,532 (4,165,092) 82,832,149 Benefit Payments (46,860,103) (44,490,793) (42,069,828) (39,276,003) (37,118,458) Refunds (892,181) (1,366,008) (1,060,187) (1,000,827) (1,675,419) Administrative Expense (343,115) (295,301) (297,984) (297,942) (175,212) Net Change in Plan Fiduciary Net Position 63,470,865 75,048,536 64,970,974 (23,321,100) 69,808,963 Plan Fiduciary Net Position - Beginning 980,288,359 905,239,823 840,268,849 863,589,949 793,780,986 Plan Fiduciary Net Position - Ending (b)$ 1,043,759,224 980,288,359 $ 905,239,823 $ 840,268,849 $ 863,589,949 Net Pension Liability/(Asset) - Beginning $ (77,658,473) (24,883,825) $ 7,089,404 $ (43,991,123) $ 5,549,248 Net Pension Liability/(Asset) - Ending (a) - (b)$ (104,467,984) (77,658,473) $ (24,883,825) $ 7,089,404 $ (43,991,123) Plan Fiduciary Net Position as a Percentage of Total Pension Liability/(Asset)111.12% 108.60% 102.83% 99.16% 105.37% Covered Payroll $ 80,852,451 79,558,524 $ 76,942,048 $ 74,021,494 $ 75,629,669 Net Pension Liability/(Asset) as a Percentage of Covered Payroll 129.21% 97.61% 32.34% 9.58% 58.17% Notes to Schedule: Data unavailable prior to 2014. Schedule of Changes in Net Pension Liability and Related Ratios Page 1 of 6 City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information - Unaudited Employees' Pension Plan 105 2018 2017 2016 2015 2014 Total Pension Liability Interest on the Total Pension Liability $ 84,902 90,635 $ 99,691 $ 100,650 $ 92,956 Difference between Expected and Actual Experience (205,912) 76,981 (296,507) 114,258 (426,528) Assumption Changes - - 208,676 201,922 - Benefit Payments (332,638) (365,154) (423,458) (442,775) (525,760) Other - - - - 143,654 Net Change in Total Pension Liability (453,648) (197,538) (411,598) (25,945) (715,678) Total Pension Liability - Beginning 3,162,699 3,360,237 3,771,835 3,797,780 4,513,458 Total Pension Liability - Ending (a)$ 2,709,051 3,162,699 $ 3,360,237 $ 3,771,835 $ 3,797,780 Plan Fiduciary Net Position Net Investment Income 59,255 (149,322) 171,674 199,776 169,627 Benefit Payments (332,638) (365,154) (423,458) (442,775) (525,760) Administrative Expense (2,500) (3,500) (2,758) (2,005) (5,808) Net Change in Plan Fiduciary Net Position (275,883) (517,976) (254,542) (245,004) (361,941) Plan Fiduciary Net Position - Beginning 3,842,781 4,360,757 4,615,299 4,860,303 5,222,244 Plan Fiduciary Net Position - Ending (b)$ 3,566,898 3,842,781 $ 4,360,757 $ 4,615,299 $ 4,860,303 Net Pension Liability/(Asset) - Beginning $ (680,082) (1,000,520) $ (843,464) $ (1,062,523) $ (495,433) Net Pension Liability/(Asset) - Ending (a) - (b)$ (857,847) (680,082) $ (1,000,520) $ (843,464) $ (1,062,523) Plan Fiduciary Net Position as a Percentage of Total Pension Liability/(Asset)131.67% 121.50% 129.78% 122.36% 127.98% Covered Payroll N/AN/AN/AN/AN/A Net Pension Liability/(Asset) as a Percentage of Covered Payroll N/AN/AN/AN/AN/A Notes to Schedule: Data unavailable prior to 2014. Schedule of Changes in Net Pension Liability and Related Ratios Page 2 of 6 City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information - Unaudited Firefighters' Relief and Pension Plan 106 Actuarially Contribution Actual Contribution FY Ending Determined Actual Deficiency Covered as a % of September 30 Contribution Contribution (Excess) Payroll Covered Payroll 2014 19,608,078$ 18,872,463$ 1 735,615$ 75,629,669$ 24.95% 2015 10,803,098$ 14,935,098$ (4,132,000)$ 74,021,494$ 2 20.18% 2016 8,767,703$ 13,190,874$ (4,423,171)$ 76,942,048$ 17.14% 2017 8,944,103$ 11,910,912$ (2,966,809)$ 79,558,524$ 14.97% 2018 8,659,427$ 10,662,462$ (2,003,035)$ 80,852,451$ 13.19% Valuation Date:January 1, 2017 Notes: Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Dollar, Closed Remaining Amortization Period 25 years (longest remaining period); 18 years (single equivalent period) Asset Valuation Method 5-year smoothed market; 20% corridor Inflation 2.50% Salary Increases 3.50% to 7.90% depending on service; including inflation Investment Rate of Return 7.00% Retirement Age Mortality Other Information: Notes Data unavailable prior to 2014. The above assumptions, except the mortality assumption, were last updated for the January 1, 2013 valuation pursuant to an experience study of the 5- year period from January 1, 2007 through January 1, 2012. The mortality assumption was updated effective January 1, 2016 in compliance with Chapter 112.63, Florida Statutes. Hazardous Duty Employees: RP-2000 Mortality Table for Annuitants, with mortality improvements projected to all future years after 2000 using Scale BB. For males, the base mortality rates include a 90% blue collar adjustment and a 10% white collar adjustment. For females, the base mortality rates include a 100% white collar adjustment. These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) in the July 1, 2016 valuation, as mandated by Chapter 112.63, Florida Statutes. Effective for the January 1, 2017 valuation, the mortality assumption for active members prior to retirement was revised in accordance with a revision to the active member pre-retirement mortality assumption used by the Florida Retirement System (FRS) in the July 1, 2016 Actuarial Valuation. No revisions were made to mortality rates applicable to retirees. Prior to this revision, pre-retirement mortality rates for active members were the sameas the postretirement rates for active members and retirees. This change was made in compliance with Chapter 112.63, Florida Statutes, which requires all public pension plans in Florida to use the same mortality tables used in either of the last two actuarial valuation reports of FRS effective January1, 2016. There were no benefit changes during the year. Schedule of Contributions Employees' Pension Plan 1 A portion of the plan's credit balance was applied to meet the remainder of the actuarially determined contribution for the fiscal year ending September 30, 2014. Notes to Schedule of Contributions Actuarially determined contributions are calculated as of January 1, which is nine months prior to the beginning of the fiscal year in which contributions are reported. Nonhazardous Duty Employees: RP-2000 Mortality Table for Annuitants, with mortality improvements projected to all future years after 2000 using Scale BB. For males, the base mortality rates include a 50% blue collar adjustment and a 50% white collar adjustment. For females, the base mortality rates include a 100% white collar adjustment. These are the same rates used for Regular Class members of the Florida Retirement System (FRS) in the July 1, 2016 valuation, as mandated by Chapter 112.63, Florida Statutes. Page 3 of 6 City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information - Unaudited Experience-based table of rates that are specific to the employment classification and type of eligibility condition. 2 The definition of Covered Payroll for GASB Statement Nos. 67 and 68 was changed under GASB Statement No. 82 to be the pensionable earnings for members of the Plan. As a result, the Covered Payroll amount previously reported for fiscal year 2015 has been revised to reflect this change. 107 Page 4 of 6 Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no remaining active members (only retirees), was fully funded per the requirements of the governing Ordinance. The City may elect to contribute should future valuations show an actuarial need for such. Schedule of Contributions Firefighters' Relief and Pension Plan Notes to Schedule of Contributions City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information - Unaudited There have been no employer contributions for the last ten fiscal years. 108 2018 2017 2016 2015 2014 Annual money-weighted rate of return, net of investment expense 9.69% 11.28% 10.63% -0.03% 10.90% Note: Data unavailable prior to 2014. Page 5 of 6 Schedule of Investment Returns Employees' Pension Plan City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information - Unaudited 109 2018 2017 2016 2015 2014 Annual money-weighted rate of return, net of investment expense 1.82% 4.680% 4.554% 4.315% 3.902% Note: Data unavailable prior to 2014. Page 6 of 6 Schedule of Investment Returns Firefighters' Relief and Pension Plan City of Clearwater, Florida Defined Benefit Pension Plans Required Supplementary Information - Unaudited 110 2018 Total OPEB Liability Service cost $ 1,731,394 Interest 974,551 Changes of benefit terms - Difference between expected and actual experience - Changes of assumptions and other inputs (1,029,325) Benefit payments (1,054,805) Net Change in Total OPEB Liability 621,815 Total OPEB Liability - Beginning 26,640,313 Total OPEB Liability - Ending $ 27,262,128 Estimated covered-employee payroll $ 77,770,858 Total OPEB liability as a percentage of covered-employee payroll 35.05% Valuation Date: January 1, 2018 Measurement Date: September 30, 2018 Roll Forward Procedures: Methods and Assumptions Used to Determine Total OPEB Liability: Actuarial Cost Method Entry Age Normal Inflation 2.50% Discount Rate 3.83% Salary Increases Retirement Age Mortality Healthcare Cost Trend Rates Aging Factors Expenses Other Information: Data unavailable prior to 2018. Administrative expenses are included in the per capita health costs. Changes in assumptions and other inputs include the change in the discount rate from 3.50% as of the beginning of the measurement period to 3.83% as of September 30, 2018. This change is reflected in the Schedule of Changes in Total OPEB Liability above. Page 1 of 1 City of Clearwater, Florida Other Post-Employment Benefits Required Supplementary Information - Unaudited The Total OPEB Liability was rolled forward nine months from the Valuation Date to the Measurement Date using standard actuarial techniques. Salary increase rates used in the January 1, 2018 actuarial valuation of the City's pension plan. Retirement rates used in the January 1, 2018 actuarial valuation of the City's pension plan. Mortality tables used for Regular and Special Risk Class members in the July 1, 2016 actuarial valuation of the Florida Retirement System, based on the results of a statewide experience study covering the period 2008 through 2013. Based on the Getzen Model, with trend starting at 6.75% and gradually decreasing to an ultimate trend rate of 4.24% plus 0.52% increase for excise tax. Based on the 2013 SOA Study "Health Care Costs - From Birth to Death". Notes to Schedule: 111 112 This Page Intentionally Left Blank 113 Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Special Programs Fund – to account for grants and contributions, the use of which is restricted for certain programs. Community Redevelopment Agency Fund – to account for receipt, custody, and expenditure of property tax increment funds associated with related redevelopment projects. Local Housing Assistance SHIP Trust Fund – to account for monies allocated to the City under the State Local Housing Assistance SHIP grant program. Pinellas County Local Housing Assistance Trust Fund – to account for monies allocated to the City under the Pinellas County Local Housing Assistance grant program. 114 Debt Service Funds Debt service funds provide separate accounting records for all debt interest, principal, and reserve requirements for general government long-term. Debt of proprietary funds is serviced through restricted accounts maintained within the individual enterprise or internal service fund associated with the debt. Notes and Mortgages Debt Service Fund - to account for the advance monthly accumulation of resources by transfer of General Revenues from the General and Special Revenue Funds and the payment of currently maturing installments of principal and interest on the various note and mortgage obligations of the governmental funds during each fiscal year. Spring Training Facility Revenue Bonds Debt Service Fund – to account for the advance monthly accumulation of resources received from the State of Florida and Pinellas County, and the payment of currently maturing installments of principal and interest each year. 115 Capital Projects Funds Capital projects funds are used to account for resources to be used for the acquisition or construction of major capital improvement projects, other than those financed by proprietary funds. A major capital improvement project is a property acquisition, a major construction undertaking, or a major improvement to an existing facility or property, with a cost greater than $25,000 and a minimum useful life of at least five years. Community Redevelopment Agency Capital Projects Fund – to provide separate accounting records for the acquisition or construction of capital improvement projects for the Clearwater Community Redevelopment Agency. SHIP Pinellas County Community Local Housing Local Housing Special Redevelopment Assistance Assistance Programs Agency Trust Trust Total ASSETS Cash and investments $ 12,096,901 $398,331 $ 692,617 $241,663 $ 13,429,512 Receivables: Accrued interest 49,859 27,725 2,590 1,341 81,515 Mortgage notes 2,553,071 - 2,151,176 141,202 4,845,449 Other 9,348 - - - 9,348 Due from other governments - grants 232,221 - - - 232,221 Due from other governments - other 110,100 - - - 110,100 Advances to other funds 325,440 - - - 325,440 Total assets $ 15,376,940 $426,056 $ 2,846,383 $384,206 $ 19,033,585 LIABILITIES Accounts and contracts payable $ 384,140 $ 16,686 $ 16,660 $ 15 $ 417,501 Accrued payroll 41,294 - - - 41,294 Due to other governmental entities 26,029 48,000 - - 74,029 Construction escrows - - 3,383 - 3,383 Unearned revenue 5,208 - - - 5,208 Advances from other funds - 325,440 - - 325,440 Total liabilities 456,671 390,126 20,043 15 866,855 FUND BALANCES Restricted 9,738,894 - 2,826,340 384,191 12,949,425 Committed 3,711,591 - - - 3,711,591 Assigned 1,469,784 35,930 - - 1,505,714 Total fund balances 14,920,269 35,930 2,826,340 384,191 18,166,730 Total liabilities and fund balances $ 15,376,940 $426,056 $ 2,846,383 $384,206 $ 19,033,585 The notes to the financial statements are an integral part of this statement. Special Revenue Funds City of Clearwater, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2018 116 Capital Spring Project Training Fund Total Notes Facility Community Nonmajor and Revenue Redevelopment Governmental Mortgages Bonds Total Agency Funds $- $680,422 $ 680,422 $ 6,655,296 $ 20,765,230 - 2,631 2,631 - 84,146 - - - - 4,845,449 - - - - 9,348 - - - - 232,221 - - - - 110,100 - - - - 325,440 $- $683,053 $ 683,053 $ 6,655,296 $ 26,371,934 $- $ - $ - $ 7,887 $425,388 - - - 1,717 43,011 - - - - 74,029 - - - - 3,383 - - - - 5,208 - - - - 325,440 - - - 9,604 876,459 - 683,053 683,053 6,623,610 20,256,088 - - - - 3,711,591 - - - 22,082 1,527,796 - 683,053 683,053 6,645,692 25,495,475 $- $683,053 $ 683,053 $ 6,655,296 $ 26,371,934 Debt Service Funds 117 SHIP Pinellas County Community Local Housing Local Housing Special Redevelopment Assistance Assistance Programs Agency Trust Trust Total REVENUES Intergovernmental: Federal $ 1,073,533 $ - $ - $ - $ 1,073,533 State 74,608 - 482,265 - 556,873 Local 391,283 1,408,720 - - 1,800,003 Charges for services 1,465,066 - - - 1,465,066 Fines and forfeitures 440,506 - - - 440,506 Investment earnings (loss): Interest 230,519 127,029 222,518 7,913 587,979 Net appreciation (depreciation) in fair value (225,957) (132,087) (12,179) (4,261) (374,484) Total investment earnings (loss) 4,562 (5,058) 210,339 3,652 213,495 Miscellaneous 1,772,999 68,624 - - 1,841,623 Total revenues 5,222,557 1,472,286 692,604 3,652 7,391,099 EXPENDITURES Current: General government 3,011,401 - - - 3,011,401 Public safety 3,173,629 - - - 3,173,629 Physical environment 43,995 - - - 43,995 Transportation 132,325 - - - 132,325 Economic environment 1,294,875 394,138 55,409 14,254 1,758,676 Human services 317,551 - - - 317,551 Culture and recreation 1,868,267 - - - 1,868,267 Debt service: Principal - - - - - Interest & fiscal charges - 5,202 - - 5,202 Capital outlay 83,517 - - - 83,517 Total expenditures 9,925,560 399,340 55,409 14,254 10,394,563 Excess (deficiency) of revenues over (under) expenditures (4,703,003) 1,072,946 637,195 (10,602) (3,003,464) OTHER FINANCING SOURCES (USES) Transfers in 5,667,971 1,473,122 - - 7,141,093 Transfers out (380,042) (2,510,138) (510,328) - (3,400,508) Total other financing sources (uses) 5,287,929 (1,037,016) (510,328) - 3,740,585 Net change in fund balances 584,926 35,930 126,867 (10,602) 737,121 Fund balances - beginning 14,335,343 - 2,699,473 394,793 17,429,609 Fund balances - ending $ 14,920,269 $ 35,930 $ 2,826,340 $ 384,191 $ 18,166,730 The notes to the financial statements are an integral part of this statement. Special Revenue Funds City of Clearwater, Florida Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2018 118 Spring Training Fund Total Notes Facility Community Nonmajor and Revenue Redevelopment Governmental Mortgages Bonds Total Agency Funds $- $ - $ - $ - $ 1,073,533 - 500,004 500,004 - 1,056,877 - 587,650 587,650 - 2,387,653 - - - - 1,465,066 - - - - 440,506 - 11,750 11,750 - 599,729 - (15,676) (15,676) - (390,160) - (3,926) (3,926) - 209,569 - - - - 1,841,623 - 1,083,728 1,083,728 - 8,474,827 - - - - 3,011,401 - - - - 3,173,629 - - - - 43,995 - - - - 132,325 - - - 309,245 2,067,921 - - - - 317,551 - - - - 1,868,267 545,745 725,000 1,270,745 - 1,270,745 32,152 343,038 375,190 - 380,392 - - - 257,179 340,696 577,897 1,068,038 1,645,935 566,424 12,606,922 (577,897) 15,690 (562,207) (566,424) (4,132,095) 577,897 - 577,897 2,112,248 9,831,238 - - - (496,797) (3,897,305) 577,897 - 577,897 1,615,451 5,933,933 - 15,690 15,690 1,049,027 1,801,838 - 667,363 667,363 5,596,665 23,693,637 $- $ 683,053 $ 683,053 $ 6,645,692 $ 25,495,475 Capital Debt Service Funds Project 119 120 This Page Intentionally Left Blank Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental - Local $ 1,407,630 $ 1,408,720 $ 1,408,720 $ - Investment earnings (loss): Interest 50,000 50,000 127,029 77,029 Net appreciation (depreciation) in fair value - - (132,087) (132,087) Total investment earnings (loss 50,000 50,000 (5,058) (55,058) Miscellaneous 68,624 68,624 68,624 - Total revenues 1,526,254 1,527,344 1,472,286 (55,058) EXPENDITURES Current - Economic environment 438,390 438,089 394,138 43,951 Debt Service - Interest & fiscal charges - - 5,202 (5,202) Total expenditures 438,390 438,089 399,340 38,749 Excess of revenues over expenditures 1,087,864 1,089,255 1,072,946 (16,309) OTHER FINANCING SOURCES (USES) Transfers in 1,154,490 1,151,254 1,473,122 321,868 Transfers out (2,242,354) (2,240,509) (2,510,138) (269,629) Total other financing sources (uses) (1,087,864) (1,089,255) (1,037,016) 52,239 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses - - 35,930 35,930 Fund balances - beginning - - - - Fund balances - ending $ - $ - $ 35,930 $ 35,930 The notes to the financial statements are an integral part of this statement. For the Year Ended September 30, 2018 Budgeted Amounts City of Clearwater, Florida Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (GAAP Basis) Community Redevelopment Agency 121 122 This Page Intentionally Left Blank 123 Nonmajor Enterprise Funds Enterprise funds are used to account for the financing, acquisition, operation, and maintenance of governmental facilities that are supported primarily by user charges. Marine Operations Fund - to account for the financing, operation, and maintenance of the City’s marine operations (excluding the downtown boat slips) and associated real property from rents collected from users. Aviation Operations Fund - to account for the financing, operation, and maintenance of the City’s airpark operations from rents collected from users. Parking System Fund - to account for the financing, construction, operation and maintenance of the City's parking system, including on- and off-street parking on Clearwater Beach and Downtown Clearwater, from parking charges. Clearwater Harbor Marina Fund - to account for the financing, operation, and maintenance of the City’s downtown boat slips from boat slip rentals. Marine Aviation Parking Clearwater Operations Operations System Harbor Marina Total ASSETS Current assets: Cash and investments $ 2,540,044 $ 619,065 $ 15,638,461 $ 1,850,890 $ 20,648,460 Accrued interest receivable 5,355 2,080 75,036 5,654 88,125 Other receivables - - 120 - 120 Due from other governmental entities - 15,892 - - 15,892 Inventories, at cost 37,017 - - - 37,017 Total current assets 2,582,416 637,037 15,713,617 1,856,544 20,789,614 Noncurrent assets: Net pension asset 610,093 40,743 993,491 106,557 1,750,884 Capital assets: Land and other nondepreciable assets 670,086 1,401,500 874,656 - 2,946,242 Capital assets, net of accumulated depreciation 439,316 3,569,582 13,412,214 10,474,282 27,895,394 Total noncurrent assets 1,719,495 5,011,825 15,280,361 10,580,839 32,592,520 Total assets 4,301,911 5,648,862 30,993,978 12,437,383 53,382,134 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - pension 46,865 3,130 76,317 8,185 134,497 Total deferred outflows of resources 46,865 3,130 76,317 8,185 134,497 LIABILITIES Current liabilities: Accounts and contracts payable 141,630 10,165 125,972 4,829 282,596 Accrued payroll 30,839 1,576 47,310 7,013 86,738 Deposits 47,055 - 5,778 39,368 92,201 Unearned revenue and liens - - 17,487 - 17,487 Current portion of long-term liabilities: Compensated absences 36,622 2,645 28,475 5,322 73,064 Capital lease purchases payable - - 4,033 - 4,033 Total current liabilities 256,146 14,386 229,055 56,532 556,119 Noncurrent liabilities: Compensated absences 31,118 2,247 24,196 4,522 62,083 Other postemployment benefits 276,711 20,719 666,559 99,779 1,063,768 Capital lease purchases payable - - 11,516 - 11,516 Total noncurrent liabilities 307,829 22,966 702,271 104,301 1,137,367 Total liabilities 563,975 37,352 931,326 160,833 1,693,486 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension 298,883 19,960 486,708 52,202 857,753 Deferred inflows - other postemployment benefits 8,763 656 21,108 3,160 33,687 Total deferred inflows of resources 307,646 20,616 507,816 55,362 891,440 NET POSITION Net investment in capital assets 1,109,402 4,971,082 14,271,321 10,474,282 30,826,087 Restricted for: Pensions 610,093 40,743 993,491 106,557 1,750,884 Unrestricted 1,757,660 582,199 14,366,341 1,648,534 18,354,734 Total net position $ 3,477,155 $ 5,594,024 $ 29,631,153 $ 12,229,373 $ 50,931,705 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Combining Statement of Net Position Nonmajor Enterprise Funds September 30, 2018 124 Marine Aviation Parking Clearwater Operations Operations System Harbor Marina Totals Operating revenues: Sales to customers $ 2,880,236 $ 18,633 $ 5,690,245 $ 2,595 $ 8,591,709 User charges to customers 238,066 - - 18,233 256,299 Rentals 1,715,582 296,939 - 764,545 2,777,066 Other 231,573 1,849 664,412 18,871 916,705 Total operating revenues 5,065,457 317,421 6,354,657 804,244 12,541,779 Operating expenses: Personal services 944,030 59,329 1,623,091 253,825 2,880,275 Purchases for resale 2,113,127 - - 109 2,113,236 Operating materials and supplies 73,790 3,757 42,317 20,173 140,037 Transportation 21,827 5,029 130,473 5,087 162,416 Utility service 370,661 42,480 49,632 50,195 512,968 Depreciation 85,558 364,069 736,038 376,789 1,562,454 Interfund administrative charges 189,050 56,620 1,100,570 129,420 1,475,660 Other current charges: Professional fees 56,828 97,081 321,968 14,458 490,335 Advertising 4,626 - 20 825 5,471 Communications 29,979 - 55,623 656 86,258 Printing and binding 2,075 - 733 95 2,903 Insurance 44,710 7,220 37,060 28,810 117,800 Repairs and maintenance 42,882 1,598 146,312 3,748 194,540 Rentals 2,880 - 17,431 - 20,311 Miscellaneous 113,832 1,380 497,803 7,587 620,602 Data processing charges 40,430 2,850 87,900 9,290 140,470 Taxes 933 - 271 - 1,204 Total other current charges 339,175 110,129 1,165,121 65,469 1,679,894 Total operating expenses 4,137,218 641,413 4,847,242 901,067 10,526,940 Operating income (loss) 928,239 (323,992) 1,507,415 (96,823)2,014,839 Nonoperating revenues (expenses): Investment earnings (loss): Interest 30,834 9,778 250,877 28,461 319,950 Net appreciation (depreciation) in fair value (30,561) (10,967) (280,209) (31,063) (352,800) Total investment earnings (loss) 273 (1,189) (29,332) (2,602) (32,850) Interest expense - - (361) - (361) Gain (loss) on disposal of capital assets - - (6,626) - (6,626) Total nonoperating revenue (expenses) 273 (1,189) (36,319) (2,602) (39,837) Income (loss) before contributions and transfers 928,512 (325,181) 1,471,096 (99,425) 1,975,002 Capital grants and contributions 4,929 107,216 - - 112,145 Transfers in - - 167 - 167 Transfers out (222,950) (90,580) (490,772) (39,460) (843,762) Change in net position 710,491 (308,545) 980,491 (138,885) 1,243,552 Net position - beginning (as previously reported) 2,870,899 5,910,439 28,883,451 12,405,997 50,070,786 Prior period restatements (See Note IV.I.) (104,235) (7,870) (232,789) (37,739) (382,633) Net position - restated 2,766,664 5,902,569 28,650,662 12,368,258 49,688,153 Net position - ending $ 3,477,155 $ 5,594,024 $ 29,631,153 $ 12,229,373 $ 50,931,705 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds For the Year Ended September 30, 2018 125 Marine Aviation Parking Clearwater Operations Operations System Harbor Marina Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 5,070,616 $317,421 $ 6,354,609 $810,756 $ 12,553,402 Cash payments to suppliers (2,728,366) (135,357) (1,128,032) (101,281) (4,093,036) Cash payments to employees (1,036,083) (63,835) (1,770,375) (251,881) (3,122,174) Cash payments to other funds (375,585) (73,697) (1,501,583) (179,277) (2,130,142) Net cash provided by operating activities 930,582 44,532 1,954,619 278,317 3,208,050 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - - 167 - 167 Transfers to other funds (222,950) (90,580) (490,772) (39,460) (843,762) Net cash used by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on debt - - (3,955) - (3,955) Interest paid - - (361) - (361) Acquisition of capital assets - - (61,869) - (61,869) Capital contributed by other governmental entities 4,929 91,324 - - 96,253 Net cash provided (used) by capital and related financing activities 4,929 91,324 (66,185) - 30,068 CASH FLOWS FROM INVESTING ACTIVITIES Investment loss (2,302) (2,077) (51,775) (5,121) (61,275) Net cash used by investing activities (2,302) (2,077) (51,775) (5,121) (61,275) Net increase in cash and cash equivalents 710,259 43,199 1,346,054 233,736 2,333,248 Cash and cash equivalents at beginning of year 1,829,785 575,866 14,292,407 1,617,154 18,315,212 Cash and cash equivalents at end of year $ 2,540,044 $619,065 $ 15,638,461 $ 1,850,890 $ 20,648,460 Cash and cash equivalents classified as: Cash and investments $ 2,540,044 $619,065 $ 15,638,461 $ 1,850,890 $ 20,648,460 Total cash and cash equivalents $ 2,540,044 $619,065 $ 15,638,461 $ 1,850,890 $ 20,648,460 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30, 2018 (222,950) (90,580) (490,605) (39,460) (843,595) 126 Marine Aviation Parking Clearwater Operations Operations System Harbor Marina Totals City of Clearwater, Florida Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30, 2018 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 928,239 $ (323,992) $ 1,507,415 $ (96,823) $ 2,014,839 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 85,558 364,069 736,038 376,789 1,562,454 Change in assets, deferred outflows, liabilities and deferred inflows: (Increase) decrease in accounts receivable - - (120) 18,409 18,289 (Increase) decrease in inventory 10,961 - - - 10,961 (Increase) decrease in net pension asset (184,525) (10,456) (364,457) (12,590) (572,028) (Increase) decrease in deferred outflows (23,720) (1,483) (42,106) (3,074) (70,383) Increase (decrease) in accounts and contracts payable (7,282) 8,961 (141,502) (10,105) (149,928) Increase (decrease) in accrued payroll 9,423 1,327 6,686 8,293 25,729 Increase (decrease) in deposits 5,159 - 255 (3,113) 2,301 Increase (decrease) in unearned revenue - - (183) (8,784) (8,967) Increase (decrease) in other postemployment benefits (9,116) (863) 51,967 (3,706) 38,282 Increase (decrease) in deferred inflows 115,885 6,969 200,626 13,021 336,501 Total adjustments 2,343 368,524 447,204 375,140 1,193,211 Net cash provided by operating activities $ 930,582 $ 44,532 $ 1,954,619 $278,317 $ 3,208,050 127 128 This Page Intentionally Left Blank 129 Internal Service Funds Internal service funds are used to account for services and commodities furnished by a designated department to other departments within the City or to other governments on a cost reimbursement basis. Garage Fund - to account for the cost of automotive and other motorized equipment of the City. The acquisition cost of new or upgraded equipment is financed through user departments and the asset value is simultaneously contributed to the Garage Fund. The cost of replacement of existing equipment is financed by the Garage Fund. Administrative Services Fund - to account for various support activities including information technology, printing, mailing, and telephone services. The cost for these services is charged to user departments based on the cost of providing units of service. General Services Fund - to account for various support activities including building maintenance and custodial services for all City departments and facilities. The cost for these services is charged to user departments based on the cost of providing units of service. Central Insurance Fund - to account for the City's limited self-insurance program wherein all funds are assessed charges based on damage claims incurred and on management's assessment of individual funds' risk exposure. All claims and premiums are paid out of this fund, together with other costs necessary to administer the program. Medical self-insurance costs and employee health clinic operating expenses are also paid from this fund. Administrative General Central Garage Services Services Insurance Total ASSETS Current assets: Cash and investments $ 12,543,184 $ 11,039,872 $ 7,820,117 $ 43,327,515 $ 74,730,688 Accrued interest receivable 35,714 43,469 13,080 163,348 255,611 Other receivables 9,565 - - 155,746 165,311 Due from other funds - - - 314,562 314,562 Due from other governmental entities - - - 30,801 30,801 Inventories, at cost 422,760 - - - 422,760 Prepaid expenses and other assets - 440 - 1,504,233 1,504,673 Total current assets 13,011,223 11,083,781 7,833,197 45,496,205 77,424,406 Noncurrent assets: Advances to other funds - - - 3,185,438 3,185,438 Net pension asset 1,814,609 4,576,742 1,698,649 354,146 8,444,146 Capital assets: Land and other nondepreciable assets 729,591 - - - 729,591 Capital assets, net of accumulated depreciation 25,294,772 2,946,663 322,647 3,810 28,567,892 Total noncurrent assets 27,838,972 7,523,405 2,021,296 3,543,394 40,927,067 Total assets 40,850,195 18,607,186 9,854,493 49,039,599 118,351,473 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - pension 139,392 351,570 130,485 27,204 648,651 Total deferred outflows of resources 139,392 351,570 130,485 27,204 648,651 LIABILITIES Current liabilities: Accounts and contracts payable 553,282 467,274 201,423 526,518 1,748,497 Accrued payroll 78,065 145,172 57,853 19,211 300,301 Unearned revenue 255,222 - - - 255,222 Current portion of long-term liabilities: Compensated absences 75,741 341,569 71,293 8,743 497,346 Capital lease purchases payable 6,722,079 286,983 5,229 - 7,014,291 Claims payable - - - 3,886,565 3,886,565 Total current liabilities (payable from current assets) 7,684,389 1,240,998 335,798 4,441,037 13,702,222 Noncurrent liabilities: Compensated absences 64,359 290,237 60,578 7,429 422,603 Other postemployment benefits 550,422 1,157,277 510,347 111,502 2,329,548 Capital lease purchases payable 14,765,673 573,642 31,152 - 15,370,467 Claims payable - - - 7,094,800 7,094,800 Total noncurrent liabilities 15,380,454 2,021,156 602,077 7,213,731 25,217,418 Total liabilities 23,064,843 3,262,154 937,875 11,654,768 38,919,640 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension 888,972 2,242,132 832,163 173,495 4,136,762 Deferred inflows - other postemployment benefits 17,430 36,647 16,161 3,531 73,769 Total deferred inflows of resources 906,402 2,278,779 848,324 177,026 4,210,531 NET POSITION Net investment in capital assets 4,536,611 2,086,038 286,266 3,810 6,912,725 Restricted for: Pensions 1,814,609 4,576,742 1,698,649 354,146 8,444,146 Unrestricted 10,667,122 6,755,043 6,213,864 36,877,053 60,513,082 Total net position $ 17,018,342 $ 13,417,823 $ 8,198,779 $ 37,235,009 $ 75,869,953 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Combining Statement of Net Position Internal Service Funds September 30, 2018 130 Administrative General Central Garage Services Services Insurance Total Operating revenues: Billings to departments $ 15,908,067 $ 11,453,801 $ 5,142,361 $ 24,463,785 $ 56,968,014 Rentals 43,868 - - - 43,868 Other 211,161 - 16,596 1,351,461 1,579,218 Total operating revenues 16,163,096 11,453,801 5,158,957 25,815,246 58,591,100 Operating expenses: Personal services 2,110,425 4,418,233 1,885,059 478,276 8,891,993 Purchases for resale 4,059,298 - - - 4,059,298 Operating materials and supplies 100,362 305,235 404,262 218,454 1,028,313 Transportation 1,688 80,349 229,455 - 311,492 Utility service 107,619 - 411,172 6,948 525,739 Depreciation 8,481,699 895,090 6,078 3,237 9,386,104 Interfund administrative charges 231,450 4,000 - - 235,450 Other current charges: Professional fees 724,177 1,533,835 2,460,645 3,014,724 7,733,381 Communications 31,719 1,111,526 54,458 8,267 1,205,970 Printing and binding 2,849 21,207 15 6,259 30,330 Insurance: Premiums 26,340 16,230 33,910 3,236,864 3,313,344 Claims incurred - - - 16,832,488 16,832,488 Repairs and maintenance 407,394 1,256,936 220,827 17,245 1,902,402 Rentals 102,741 416,953 35,297 45,133 600,124 Miscellaneous 39,084 169,332 28,049 73,689 310,154 Data processing charges 138,170 212,640 131,690 17,750 500,250 Taxes 18,672 - - 6,150 24,822 Total other current charges 1,491,146 4,738,659 2,964,891 23,258,569 32,453,265 Total operating expenses 16,583,687 10,441,566 5,900,917 23,965,484 56,891,654 Operating income (loss) (420,591) 1,012,235 (741,960) 1,849,762 1,699,446 Nonoperating revenues (expenses) Investment earnings (loss): Interest 154,436 181,723 84,891 728,562 1,149,612 Net appreciation (depreciation) in fair value (137,936) (201,189) (107,916) (800,810) (1,247,851) Total investment earnings (loss) 16,500 (19,466) (23,025) (72,248) (98,239) Interest expense (369,806) (19,216) - - (389,022) Gain on disposal of capital assets 796,630 - - - 796,630 Total nonoperating revenue (expenses) 443,324 (38,682) (23,025) (72,248) 309,369 Income (loss) before contributions and transfers 22,733 973,553 (764,985) 1,777,514 2,008,815 Transfers in 1,997,829 - 3,596,125 - 5,593,954 Transfers out (520,000) - (36,381) (3,377) (559,758) Change in net position 1,500,562 973,553 2,794,759 1,774,137 7,043,011 Net position - beginning (as previously reported) 15,726,351 12,882,805 5,597,355 35,503,152 69,709,663 Prior period restatements (See Note IV.I.) (208,571) (438,535) (193,335) (42,280) (882,721) Net position - restated 15,517,780 12,444,270 5,404,020 35,460,872 68,826,942 Net position - ending $ 17,018,342 $ 13,417,823 $ 8,198,779 $ 37,235,009 $ 75,869,953 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Combining Statement of Revenue, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended September 30, 2018 131 Administrative General Central Garage Services Services Insurance Total CASH FLOWS FROM OPERATING ACTIVITIES Cash received from other funds $ 16,163,096 $ 11,453,801 $5,161,230 $ 25,704,310 $ 58,482,437 Cash payments to suppliers (5,887,801) (4,408,093) (3,480,708) (19,946,796) (33,723,398) Cash payments to employees (2,319,353) (5,076,001) (2,204,553) (491,532) (10,091,439) Cash payments to other funds (645,953) (578,525) (467,184) (2,883,905) (4,575,567) Net cash provided (used) by operating activities 7,309,989 1,391,182 (991,215) 2,382,077 10,092,033 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 1,997,830 - 3,596,125 - 5,593,955 Transfers to other funds (520,000) - (36,381) (3,377) (559,758) Receipt of cash on loans to/from other funds - - - 316,667 316,667 Payment of cash on loans to/from other funds - - - (3,500,000) (3,500,000) Net cash provided (used) by noncapital financing activities 1,477,830 - 3,559,744 (3,186,710) 1,850,864 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on debt (6,177,672) (326,999) - - (6,504,671) Interest paid (369,806) (19,216) - - (389,022) Acquisition of capital assets (8,671,418) (918,969) (296,400) - (9,886,787) Proceeds from issuance of debt 9,096,066 210,265 36,381 - 9,342,712 Net cash used by capital and related financing activities (6,122,830) (1,054,919) (260,019) - (7,437,768) CASH FLOWS FROM INVESTING ACTIVITIES Investment gain (loss) 3,234 (36,394) (30,451) (139,071) (202,682) Net cash provided (used) by investing activities 3,234 (36,394) (30,451) (139,071) (202,682) Net increase (decrease) in cash and cash equivalents 2,668,223 299,869 2,278,059 (943,704) 4,302,447 Cash and cash equivalents at beginning of year 9,874,961 10,740,003 5,542,058 44,271,219 70,428,241 Cash and cash equivalents at end of year $ 12,543,184 $ 11,039,872 $7,820,117 $ 43,327,515 $ 74,730,688 Cash and cash equivalents classified as: Cash and investments $ 12,543,184 $ 11,039,872 $7,820,117 $ 43,327,515 $ 74,730,688 Total cash and cash equivalents $ 12,543,184 $ 11,039,872 $7,820,117 $ 43,327,515 $ 74,730,688 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2018 132 Administrative General Central Garage Services Services Insurance Total City of Clearwater, Florida Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2018 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (420,591) $ 1,012,235 $(741,960) $ 1,849,762 $ 1,699,446 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 8,481,699 895,090 6,078 3,237 9,386,104 Change in assets, deferred outflows, liabilities and deferred inflows: (Increase) decrease in accounts receivable (4,503) - 2,273 (80,135) (82,365) (Increase) decrease in due from other governments - - - (30,801) (30,801) (Increase) decrease in inventory (18,361) - - - (18,361) (Increase) decrease in prepaid expenses - (440) - 558,922 558,482 (Increase) decrease in net pension asset (433,841) (1,341,490) (576,484) (42,736) (2,394,551) (Increase) decrease in deferred outflows (64,297) (175,616) (69,454) (10,267) (319,634) Increase (decrease) in accounts and contracts payable (455,521) 142,065 61,888 94,348 (157,220) Increase (decrease) in accrued payroll 26,492 83,610 3,571 7,477 121,150 Increase (decrease) in unearned revenue (63,806) - - - (63,806) Increase (decrease) in other postemployment benefits (21,509) (45,245) (19,803) (4,434) (90,991) Increase (decrease) in deferred inflows 284,227 820,973 342,676 36,704 1,484,580 Total adjustments 7,730,580 378,947 (249,255) 532,315 8,392,587 Net cash provided (used) by operating activities $ 7,309,989 $ 1,391,182 $(991,215) $ 2,382,077 $ 10,092,033 133 134 This Page Intentionally Left Blank 135 Fiduciary Funds Fiduciary Funds are used to account for resources that are managed in a trustee capacity or as an agent for other parties or funds. Employees’ Pension Fund - to account for the financial operation and condition of the major employee retirement system. Firefighters’ Relief and Pension Fund - to account for the financial operation and condition of the Firefighters' Relief and Pension Plan, closed to new members in 1962, and containing 15 retired members with no active members. The Plan was fully funded effective with fiscal year 2007. Police Supplemental Pension Fund - to account for the financial operation and condition of a supplemental pension plan funded by the State for sworn police officers. Firefighters’ Supplemental Pension Fund - to account for the financial operation and condition of a supplemental pension plan funded by the State for firefighters. Treasurer’s Escrow Agency Fund - to account for the receipt, custody, and expenditure of funds held temporarily in trust for other parties. Defined Benefit Defined Contribution Pension Trust Funds Pension Trust Funds Firefighters' Police Firefighters' Employees' Relief and Supplemental Supplemental Pension Fund Pension Fund Pension Fund Pension Fund Totals ASSETS Cash and cash equivalents $ 3,351,572 $ 1,610,360 $ 4,367 $ - $ 4,966,299 Managed investment accounts, at fair value: Cash and cash equivalents 22,618,361 - 1,072,575 494,109 24,185,045 Government bonds 79,564,254 - - 374,038 79,938,292 Index linked government bonds 879,538 - - - 879,538 Agency bonds 7,724,456 1,928,806 - - 9,653,262 Municipal bonds 3,474,601 - - 94,337 3,568,938 Domestic corporate bonds 95,005,177 - - 1,975,635 96,980,812 International equity securities 126,640,082 - - 25,526 126,665,608 Domestic stocks 405,214,802 - - 4,402,749 409,617,551 Mortgage backed bonds 104,396,838 - - 1,336,127 105,732,965 Asset backed securities 9,009,234 - - - 9,009,234 Other/rights/warrants 1,655 - - - 1,655 Domestic equity mutual funds 45,600,850 - 10,417,369 6,497,501 62,515,720 International equity mutual funds 37,403,244 - 7,136,871 1,514,706 46,054,821 Infrastructure 36,724,132 - - - 36,724,132 Real estate 93,718,176 - - 2,847,987 96,566,163 Total managed investment accounts 1,067,975,400 1,928,806 18,626,815 19,562,715 1,108,093,736 Securities lending collateral 149,473,650 - - - 149,473,650 Receivables: Interest and dividends 3,232,989 27,732 1,411 39,195 3,301,327 Unsettled investment sales 2,236,427 - - - 2,236,427 Securities lending earnings 43,672 - - - 43,672 Due from others 116,173 - - - 116,173 Total receivables 5,629,261 27,732 1,411 39,195 5,697,599 Total assets 1,226,429,883 3,566,898 18,632,593 19,601,910 1,268,231,284 LIABILITIES Accounts payable 944,421 - 170,701 - 1,115,122 Unsettled investment purchases 32,160,613 - - - 32,160,613 Other payables 91,975 - - - 91,975 Obligations under securities lending 149,473,650 - - - 149,473,650 Total liabilities 182,670,659 - 170,701 - 182,841,360 FIDUCIARY NET POSITION Net position restricted for pensions $ 1,043,759,224 $ 3,566,898 $ 18,461,892 $ 19,601,910 $ 1,085,389,924 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Combining Statement of Fiduciary Net Position Fiduciary Funds September 30, 2018 136 Defined Benefit Defined Contribution Pension Trust Funds Pension Trust Funds Firefighters' Police Firefighters' Employees' Relief and Supplemental Supplemental Pension Fund Pension Fund Pension Fund Pension Fund Totals ADDITIONS Contributions: Contributions from employer $ 10,650,462 $ - $ - $ - $ 10,650,462 Contributions from employer - state tax 12,000 - 1,046,623 1,093,344 2,151,967 Contributions from employees 7,127,965 - - - 7,127,965 Total contributions 17,790,427 - 1,046,623 1,093,344 19,930,394 Investment income: Net appreciation (depreciation) in fair value of investments 80,265,824 (44,678) 522,036 897,530 81,640,712 Interest 9,536,628 103,933 - 310,804 9,951,365 Dividends 10,126,075 - 44,289 582,437 10,752,801 Less investment expenses: Investment management/custodian fees (6,665,985) - (31,106) (115,480) (6,812,571) Net income from investing activities 93,262,542 59,255 535,219 1,675,291 95,532,307 Securities lending income: Gross earnings 3,147,789 - - - 3,147,789 Rebate paid (2,358,344) - - - (2,358,344) Bank fees (276,150) - - - (276,150) Net income from securities lending 513,295 - - - 513,295 Total additions 111,566,264 59,255 1,581,842 2,768,635 115,975,996 DEDUCTIONS Benefits and withdrawal payments: Benefits 46,860,103 332,638 2,087,699 2,109,198 51,389,638 Withdrawal payments 892,181 - - - 892,181 Total benefits and withdrawal payments 47,752,284 332,638 2,087,699 2,109,198 52,281,819 Income (loss) before administrative expenses 63,813,980 (273,383) (505,857) 659,437 63,694,177 Less administrative expenses (343,115) (2,500) (18,670) (24,784) (389,069) Net increase (decrease)63,470,865 (275,883) (524,527) 634,653 63,305,108 Fiduciary net position restricted for pensions Fiduciary net position - beginning 980,288,359 3,842,781 18,986,419 18,967,257 1,022,084,816 Fiduciary net position - ending $ 1,043,759,224 $ 3,566,898 $ 18,461,892 $ 19,601,910 $ 1,085,389,924 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended September 30, 2018 137 Balance Balance October 1, September 30, 2017 Additions Deductions 2018 TREASURER'S ESCROW FUND ASSETS Cash and investments $ 391,898 507,777 445,749 $ 453,926 Accrued interest receivable 333 218 106 445 Total Assets $ 392,231 507,995 445,855 $ 454,371 LIABILITIES Other miscellaneous payables: Downtown Development Board $ 159,267 496,251 430,720 $ 224,798 Special purpose funds 7,833 - 7,833 - Other 225,131 7,465 3,023 229,573 Total Liabilities $ 392,231 503,716 441,576 $ 454,371 The notes to the financial statements are an integral part of this statement. City of Clearwater, Florida Statement of Changes in Assets and Liabilities Agency Fund For the Year Ended September 30, 2018 138 Financial Trends Schedule 1 Net Position by Component Schedule 2 Changes in Net Position Schedule 2a Program Revenues by Function/Program Schedule 3 Fund Balances of Governmental Funds Schedule 4 Changes in Fund Balances of Governmental Funds Revenue Capacity Schedule 5 Assessed Value and Estimated Actual Value of Taxable Property Schedule 6 Direct and Overlapping Property Tax Rates Schedule 7 Property Tax Levies and Collections Schedule 8a Principal Real Property Taxpayers Schedule 8b Principal Personal Property Taxpayers Debt Capacity Schedule 9 Ratios of Outstanding Debt by Type Schedule 10 Ratios of General Bonded Debt Outstanding Schedule 11 Direct and Overlapping Governmental Activities Debt Schedule 12 Legal Debt Margin Information Schedule 13 Pledged-Revenue Coverage These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt, and the City’s ability to issue additional debt in the future. CITY OF CLEARWATER, FLORIDA STATISTICAL SECTION This section of the City’s CAFR presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the City’s overall financial health. This information has not been audited by the independent auditor. These schedules contain trend information to help the reader understand how the City’s financial performance and well-being changed over time. These schedules contain information to help the reader assess the City’s significant local revenue, the property tax. 139 Economic and Demographic Information Schedule 14 Demographic and Economic Statistics Schedule 15 Principal Employers Operating Information Schedule 16 Full-time Equivalent City Government Employees by Function/Program Schedule 17 Operating Indicators by Function/Program Schedule 18 Capital Assets Statistics by Function/Program These schedules offer economic and demographic indicators to help the reader understand the environment within which the City’s financial activities take place. These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in this section is derived from the City’s comprehensive annual financial reports for the relevant year. STATISTICAL SECTION (CONTINUED) CITY OF CLEARWATER, FLORIDA 140 2009201020112012201320142015201620172018Primary GovernmentGovernmental activities Net investment in capital assets 240,550$ 249,043$ 257,542$ 249,742$ 252,661$ 261,886$ 262,934$ 263,810$ 271,834$ 256,608$ Restricted 42,681 49,682 57,245 65,603 60,454 56,044 57,003 52,936 119,003 145,996 Unrestricted 103,556 93,283 79,955 80,208 82,369 153,334 121,033 128,785 72,595 57,072 Total governmental activities net position 386,787$ 392,008$ 394,742$ 395,553$ 395,484$ 471,264$ 440,970$ 445,531$ 463,432$ 459,676$ Business-type activities Net investment in capital assets 158,129$ 165,704$ 159,913$ 163,316$ 180,324$ 214,175$ 226,571$ 231,591$ 254,503$ 250,410$ Restricted 41,333 44,332 55,038 55,204 53,237 49,530 45,503 36,803 47,946 54,034 Unrestricted 120,461 126,204 136,067 151,693 153,761 163,876 164,135 194,997 183,726 194,547 Total business-type activities net position 319,923$ 336,240$ 351,018$ 370,213$ 387,322$ 427,581$ 436,209$ 463,391$ 486,175$ 498,991$ Primary government Net investment in capital assets 398,679$ 414,747$ 417,455$ 413,058$ 432,985$ 476,061$ 489,505$ 495,401$ 526,337$ 507,018$ Restricted 84,014 94,014 112,283 120,807 113,691 105,574 102,506 89,739 166,949 200,030 Unrestricted 224,017 219,487 216,022 231,901 236,130 317,210 285,168 323,782 256,321 251,619 Total primary government net position 706,710$ 728,248$ 745,760$ 765,766$ 782,806$ 898,845$ 877,179$ 908,922$ 949,607$ 958,667$ Note:Fiscal years prior to 2015 are not restated for GASB-68.Fiscal years prior to 2018 are not restated for GASB-75.Schedule 1City of Clearwater, FloridaNet Position by Component,Last Ten Fiscal Years(accrual basis of accounting)141 2009201020112012201320142015201620172018Governmental activities: General government 13,515$ 15,966$ 16,183$ 14,230$ 13,496$ 15,018$ 16,818$ 13,488$ 14,876$ 18,323$ Public safety 64,977 69,457 66,914 67,559 68,057 70,126 99,056 71,718 66,795 67,737 Physical environment 4,266 4,941 3,868 3,189 3,451 3,416 3,273 4,142 3,993 4,055 Transportation 9,595 13,760 13,275 13,432 12,954 11,129 19,366 14,532 14,339 17,020 Economic environment 3,924 4,155 3,113 2,240 3,035 2,517 4,895 4,019 5,305 6,205 Human services 402 97 182 186 104 137 249 526 455 462 Culture and recreation 28,740 30,610 30,606 32,814 32,213 33,051 40,783 36,894 36,497 50,485 Interest on long-term debt 1,850 1,446 1,217 709 698 727 689 740 748 745 Total governmental activities expenses 127,269 140,432 135,358 134,359 134,008 136,121 185,129 146,059 143,008 165,032 Business-type activities: Water and sewer utility 54,520 57,229 61,010 59,406 57,774 64,810 69,550 64,866 73,253 82,197 Gas utility 29,285 31,200 28,354 27,662 29,747 31,639 33,352 29,195 30,716 35,569 Solid waste utility 14,801 15,618 15,844 16,632 17,042 17,572 22,486 17,989 17,626 17,053 Stormwater utility 11,775 10,937 12,234 12,847 12,284 16,476 16,110 13,664 13,148 14,550 Recycling 2,518 2,759 2,954 2,855 4,056 3,094 2,455 2,958 2,864 3,042 Marine 4,025 3,868 4,136 4,168 4,214 4,378 4,182 3,476 3,781 4,119 Aviation 743 388 515 366 404 345 399 415 470 640 Parking system 3,752 4,302 3,867 4,200 3,730 3,637 4,724 4,097 4,379 4,817 Harborview Center 2,345 984 579 610 520 522 - - - - Clearwater Harbor Marina 474 473 657 726 676 779 911 848 823 895 Total business-type activities expenses 124,238 127,758 130,150 129,472 130,447 143,252 154,169 137,508 147,060 162,882 Total primary government expenses 251,507$ 268,190$ 265,508$ 263,831$ 264,455$ 279,373$ 339,298$ 283,567$ 290,068$ 327,914$ Notes:The Harborview Center Fund was closed in FY 2014 and its operations transferred to the General Fund during the year ended September 30, 2014.Fiscal years prior to 2015 are not restated for GASB-68.Fiscal years prior to 2018 are not restated for GASB-75.ExpensesSchedule 2City of Clearwater, FloridaChanges in Net PositionLast Ten Fiscal Years(accrual basis of accounting)Page 1 of 3142 2009201020112012201320142015201620172018 Charges for services: General government 21,679$ 21,484$ 20,869$ 20,401$ 19,920$ 22,726$ 23,668$ 23,030$ 23,380$ 24,391$ Public safety 10,291 8,966 9,980 9,265 10,654 11,040 10,593 11,952 11,788 11,318 Physical environment 249 331 147 77 174 150 196 137 67 237 Transportation 397 857 852 885 738 454 327 150 157 127 Economic environment 211 124 153 122 121 132 109 105 105 312 Culture and recreation 5,334 5,174 5,491 5,474 5,973 6,855 7,103 7,751 8,336 8,384 Operating grants and contributions 8,542 7,561 8,062 8,521 8,114 6,305 6,893 6,236 7,012 7,456 Capital grants and contributions 3,169 1,315 2,766 845 437 2,391 2,326 2,642 3,894 7,146 Total governmental activities program revenues49,872 45,812 48,320 45,590 46,131 50,053 51,215 52,003 54,739 59,371 Business-type activities: Charges for services: Water and sewer utility 53,965 55,801 59,810 62,012 65,292 67,141 70,848 75,203 81,514 83,994 Gas utility 39,079 36,622 36,470 36,351 37,693 41,347 41,143 38,598 40,602 45,120 Solid waste utility 17,847 18,422 19,205 19,462 19,504 19,966 20,401 21,602 22,492 23,234 Stormwater utility 13,493 14,717 15,222 15,890 16,378 16,789 17,162 17,854 18,512 18,397 Recycling 2,227 2,695 3,135 2,681 2,453 2,370 2,261 2,390 2,546 2,316 Marine 4,031 4,064 4,387 4,181 4,331 4,643 4,352 4,054 4,444 5,065 Aviation 216 332 237 257 261 268 283 291 311 317 Parking system 5,007 4,358 4,677 4,890 4,994 5,159 6,215 6,638 7,027 6,348 Harborview Center 1,641 440 51 209 48 50 - - - - Clearwater Harbor Marina 50 44 325 467 559 619 664 717 799 804 Operating grants and contributions 83 187 133 134 584 140 50 208 83 83 Capital grants and contributions 2,609 11,060 5,290 7,469 6,250 13,590 4,662 3,487 3,564 3,785 Total business-type activities program revenues140,248 148,742 148,942 154,003 158,347 172,082 168,041 171,042 181,894 189,463 Total primary government program revenues190,120$ 194,554$ 197,262$ 199,593$ 204,478$ 222,135$ 219,256$ 223,045$ 236,633$ 248,834$ Program revenuesPage 2 of 3Schedule 2 (continued)City of Clearwater, FloridaChanges in Net PositionLast Ten Fiscal Years(accrual basis of accounting)143 2009201020112012201320142015201620172018Net (Expenses) / RevenueGovernmental activities (77,397)$ (94,620)$ (87,038)$ (88,770)$ (87,876)$ (86,068)$ (133,914)$ (94,055)$ (88,270)$ (105,661)$ Business-type activities 16,010 20,984 18,792 24,531 27,900 28,830 13,872 33,534 34,834 26,581 Total primary government net (expense) / revenue (61,387)$ (73,636)$ (68,246)$ (64,239)$ (59,976)$ (57,238)$ (120,042)$ (60,521)$ (53,436)$ (79,080)$ General Revenues and Other Changes in Net PositionGovernmental activities: Taxes Property 46,893$ 44,040$ 39,253$ 37,938$ 37,360$ 38,574$ 40,925$ 43,580$ 46,853$ 50,610$ Sales 13,850 13,253 13,385 14,092 14,818 15,722 16,833 17,595 18,009 19,015 Utility 12,021 13,574 13,229 12,736 13,473 14,309 14,095 14,518 14,835 15,544 Communications services 6,398 6,107 5,852 5,871 5,470 5,061 4,919 4,618 4,512 4,721 Other taxes 7,581 7,773 7,451 7,105 8,157 7,725 7,969 6,845 8,395 8,727 Investment earnings 8,635 5,015 2,965 2,758 (1,109) 2,596 3,279 2,285 698 (136) Miscellaneous 113 128 125 101 134 28 26 108 36 100 Extraordinary item - - - - - - 6,480 - - - Transfers (2,958) 9,951 7,511 8,980 9,505 13,410 9,330 9,069 12,831 10,341 Total governmental activities 92,533 99,841 89,771 89,581 87,808 97,425 103,856 98,618 106,169 108,922 Business-type activities: Investment earnings 6,904 5,284 3,497 3,644 (1,287) 3,407 4,086 2,715 783 (350) Transfers 2,958 (9,951) (7,511) (8,980) (9,505) (13,410) (9,330) (9,069) (12,831) (10,341) Total business-type activities 9,862 (4,667) (4,014) (5,336) (10,792) (10,003) (5,244) (6,354) (12,048) (10,691) Total primary government 102,395$ 95,174$ 85,757$ 84,245$ 77,016$ 87,422$ 98,612$ 92,264$ 94,121$ 98,231$ Change in Net PositionGovernmental activities 15,136$ 5,221$ 2,733$ 811$ (68)$ 11,357$ (30,058)$ 4,563$ 17,899$ 3,261$ Business-type activities 25,872 16,317 14,778 19,195 17,108 18,827 8,628 27,180 22,786 15,890 Total primary government change in net position 41,008$ 21,538$ 17,511$ 20,006$ 17,040$ 30,184$ (21,430)$ 31,743$ 40,685$ 19,151$ Schedule 2 (continued)City of Clearwater, FloridaChanges in Net PositionLast Ten Fiscal Years(accrual basis of accounting)Page 3 of 3144 2009201020112012201320142015201620172018Function/ProgramGovernmental activities: General government 21,681$ 21,512$ 21,533$ 20,418$ 19,920$ 22,728$ 23,668$ 23,030$ 23,432$ 24,398$ Public safety 13,284 12,309 12,631 13,753 13,551 14,192 13,201 15,439 14,778 14,455 Physical environment 304 360 344 327 326 447 1,311 986 1,538 1,729 Transportation 1,852 2,024 2,651 1,436 1,284 885 1,024 927 1,312 2,889 Economic environment 3,327 1,982 2,444 1,687 2,988 1,828 1,713 1,426 2,014 1,725 Human services - - 211 180 147 - 350 333 368 431 Culture and recreation 9,424 7,625 8,506 7,789 7,915 9,973 9,948 9,862 11,297 13,744 Subtotal governmental activities 49,872 45,812 48,320 45,590 46,131 50,053 51,215 52,003 54,739 59,371 Business-type activities: Water and sewer utility 55,291 63,426 63,566 68,812 69,732 78,478 74,146 77,312 82,531 86,706 Gas utility 39,078 36,672 36,470 36,351 38,143 41,347 41,143 38,598 40,602 45,120 Solid waste utility 17,847 18,422 19,205 19,462 19,504 19,966 20,401 21,727 22,492 23,234 Stormwater utility 14,478 15,682 16,523 15,961 16,869 18,821 17,805 19,029 21,053 19,358 Recycling 2,310 2,779 3,218 2,764 2,536 2,453 2,261 2,473 2,629 2,399 Marine 4,031 4,064 4,387 4,259 4,334 4,658 4,357 4,055 4,447 5,070 Aviation 365 491 454 776 1,491 480 999 377 314 424 Parking system 5,157 4,364 4,677 4,890 4,994 5,159 6,215 6,704 7,027 6,348 Harborview Center 1,641 440 51 209 48 50 - - - - Clearwater Harbor Marina 50 2,402 391 518 696 670 714 767 799 804 Subtotal business-type activities 140,248 148,742 148,942 154,002 158,347 172,082 168,041 171,042 181,894 189,463 Total primary government 190,120$ 194,554$ 197,262$ 199,592$ 204,478$ 222,135$ 219,256$ 223,045$ 236,633$ 248,834$ Schedule 2aCity of Clearwater, FloridaProgram Revenues by Function/ProgramLast Ten Fiscal Years(accrual basis of accounting)145 200920102011a2012201320142015201620172018General Fund: Nonspendable -$ -$ 24$ 25$ 37$ 33$ 40$ 59$ 62$ 76$ Restricted - - - - - - - - - - Committed - - - - - - - - - - Assigned - - 856 1,043 588 894 447 352 232 436 Unassigned - - 23,081 22,034 21,664 23,488 31,540 33,243 28,276 27,176 Reserved 3,168 1,164 - - - - - - - - Unreserved 19,171 22,903 - - - - - - - - Total General Fund 22,339$ 24,067$ 23,961$ 23,102$ 22,289$ 24,415$ 32,027$ 33,654$ 28,570$ 27,688$ All Other Governmental Funds: Nonspendable -$ -$ 90$ 87$ 96$ -$ -$ -$ -$ -$ Restricted - - 61,991 65,645 60,493 56,043 53,900 52,936 58,681 67,328 Committed - - 17,131 17,346 27,322 19,374 20,167 22,360 22,132 19,829 Assigned - - 7,404 8,488 5,801 6,689 7,815 7,475 7,094 3,043 Unassigned - - (1,921) (2,119) (3,917) (6,347) (2,553) - - - Reserved 37,259 29,970 - - - - - - - - Unreserved, reported in:- - - - Special revenue funds 16,899 13,944 - - - - - - - - Debt service funds 136 7,726 - - - - - - - - Capital project funds 36,757 36,240 - - - - - - - - Total all other governmental funds 91,051$ 87,880$ 84,695$ 89,447$ 89,795$ 75,759$ 79,329$ 82,771$ 87,907$ 90,200$ a GASB Statement No. 54 was implemented in 2011 and reflects the new fund balance classifications for 2011.The new classifications have not been restated for 2010 and prior.Schedule 3City of Clearwater, FloridaFund Balances of Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting)146 2009201020112012201320142015201620172018Total Governmental Funds: Property taxes 46,579$ 44,097$ 39,290$ 37,954$ 37,413$ 38,597$ 40,919$ 43,614$ 46,852$ 50,710$ Sales taxes 8,574 7,987 7,929 8,393 8,868 9,465 10,188 10,715 11,014 11,670 Utility taxes 12,020 13,574 13,229 12,735 13,473 14,309 14,094 14,518 14,835 15,544 Communications services taxes 6,966 6,107 5,852 5,871 5,470 5,061 4,919 4,618 4,512 4,721 Other taxes 4,167 3,613 3,561 3,308 3,556 3,554 3,519 2,194 3,459 3,493 Franchise fees 10,204 10,540 9,994 9,603 9,164 9,877 9,873 9,311 9,394 9,992 Licenses, permits, and fees 1,918 1,766 2,364 2,117 2,187 3,292 4,408 3,339 3,893 3,748 Intergovernmental revenues 27,972 25,400 26,693 25,750 26,842 26,354 27,573 28,293 30,236 34,277 Charges for services 14,933 14,803 14,081 14,682 14,484 15,574 15,830 16,536 17,304 17,381 Fines and forfeitures 1,478 1,101 1,638 985 1,808 1,480 1,638 2,116 1,727 2,165 Investment earnings 5,768 3,360 1,937 1,719 (668) a1,717 2,160 1,486 460 194 Miscellaneous 1,880 1,709 2,963 2,016 2,310 2,734 3,886 4,028 4,051 4,499 Total revenues 142,459 134,057 129,531 125,133 124,907 132,014 139,007 140,768 147,737 158,394 ExpendituresTotal Governmental Funds: Current: General government 13,633 15,676 15,042 12,764 12,520 14,391 13,159 12,917 16,277 17,250 Public safety 64,242 64,734 63,610 64,171 66,262 66,771 66,886 69,575 71,752 74,486 Physical environment 4,085 3,777 3,722 3,032 3,376 3,400 3,158 3,594 4,185 4,403 Transportation 7,768 9,128 8,536 8,332 7,522 7,787 9,925 9,554 9,626 9,629 Economic environment 3,166 3,089 2,773 2,470 3,256 2,544 3,993 3,473 4,826 4,106 Human services 405 100 180 182 104 137 223 525 466 490 Culture and recreation 27,114 25,883 25,198 27,028 26,567 27,557 28,339 31,279 33,868 43,030 Debt service: Principal 7,825 11,670 9,510 1,049 1,049 947 928 979 1,088 1,271 Interest & issuance costs 1,617 1,339 856 548 538 542 501 459 414 380 Capital outlay 22,312 10,145 9,165 8,860 13,318 16,098 12,132 12,062 13,015 8,921 Total expenditures 152,167 145,541 138,592 128,436 134,512 140,174 139,244 144,417 155,517 163,966 Excess (deficiency) of revenues over (under) expenditures (9,708) (11,484) (9,061) (3,303) (9,605) (8,160) (237) (3,649) (7,780) (5,572) Total Governmental Funds: Transfers in 38,956 52,481 34,908 31,373 35,813 34,453 39,386 32,824 45,413 49,202 Transfers out (31,312) (42,440) (30,204) (24,491) (26,673) (25,819) (31,190) (25,074) (38,658) (43,895) Long term debt issued 525 - 1,066 314 - - 82 968 1,077 1,677 Total other financing sources (uses) 8,169 10,041 5,770 7,196 9,140 8,634 8,278 8,718 7,832 6,984 Extraordinary Item:BP Oil settlement proceeds - - - - - - 6,480 - - - (1,539)$ (1,443)$ (3,291)$ 3,893$ (465)$ 474$ 14,521$ 5,069$ 52$ 1,412$ Debt service as a percentage of noncapital expenditures 7.4% 9.6%8.2% 1.3% 1.3% 1.3% 1.1% 1.1% 1.1% 1.1%Notes:Fiscal years prior to 2015 are not restated for GASB-68.Fiscal years prior to 2018 are not restated for GASB-75.aThe decrease in 2013 investment earnings was due to a low interest rate environment along with an unrealized loss in market value at September 30, 2013.Other Financing Sources (Uses)Net Change in Fund BalancesRevenuesSchedule 4City of Clearwater, FloridaChanges in Fund Balances of Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting)147 Less:Government Homestead Total Total Estimated Assessedand Assessment Less:Taxable Direct Actual Value as %Fiscal Residential Commercial Industrial Institutional Personal OtherCap Tax Exempt Assessed Tax Taxable of ActualYear Property Property Property Property Property Property DifferentialbProperty Value RatecValue Value2009 9,965,589$ 2,353,563$ 192,940$ 1,586,882$ 645,460$ 89,686$ 1,721,773$ 2,951,357$ 10,160,990$ 4.7254 11,954,106$ 85.0%2010 8,163,897 2,346,462 185,353 1,156,811 657,933 95,259 907,087 2,878,136 8,820,492 5.1550 10,377,049 85.0%2011 7,069,236 2,043,813 162,529 999,884 630,044 112,864 472,793 2,679,167 7,866,410 5.1550 9,254,600 85.0%2012 6,732,585 2,001,945 149,166 973,917 609,704 94,750 391,670 2,573,448 7,596,949 5.1550 8,937,587 85.0%2013 6,496,278 2,043,952 140,377 1,017,944 593,746 114,615 290,989 2,623,699 7,492,224 5.1550 8,814,381 85.0%2014 6,863,874 2,077,078 149,298 1,057,915 601,743 113,552 485,295 2,640,339 7,737,826 5.1550 9,103,325 85.0%2015 7,713,777 2,145,212 156,487 1,117,973 631,798 113,591 959,433 2,714,945 8,204,460 5.1550 9,652,306 85.0%2016 8,606,077 2,248,376 161,628 1,167,103 659,302 116,457 1,447,451 2,762,807 8,748,685 5.1550 10,292,571 85.0%2017 9,309,714 2,416,458 181,646 1,170,702 653,678 116,714 1,655,985 2,792,826 9,400,101 5.1550 11,058,942 85.0%2018 10,027,947 2,634,890 191,916 1,199,559 753,946 112,055 1,835,694 2,903,688 10,180,931 5.1550 11,977,566 85.0%a Properties are assessed at approximately 85% of market value to reflect cost of sales, personal property included in market value, etc.b Florida Statutes, 193.155, provides for an annual cap on assessment increases for "Homestead properties" (properties qualifying for Homestead exemption). The cap is the lower of 3% of the assessed value of the property or the percentage change in the Consumer Price Index for All Urban Consumers.c Rate is per $1,000 of assessed valueAssessed Value aSchedule 5City of Clearwater, FloridaAssessed Value and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years(in thousands of dollars)148 Fiscal Year Operating Total Direct Pinellas County Pinellas County Schools Pinellas Transit District Emergency Medical Services Other Districts Downtown Development Board a 2009 4.7254 4.7254 4.8730 8.0610 0.5601 0.5832 1.5551 0.9651 2010 5.1550 5.1550 4.8730 8.3460 0.5601 0.5832 1.5106 0.9651 2011 5.1550 5.1550 4.8730 8.3400 0.5601 0.5832 1.4410 0.9651 2012 5.1550 5.1550 4.8730 8.3850 0.7305 0.8506 1.2390 0.9651 2013 5.1550 5.1550 5.0727 8.3020 0.7305 0.9158 1.3034 0.9651 2014 5.1550 5.1550 5.3377 8.0600 0.7305 0.9158 1.2959 0.9651 2015 5.1550 5.1550 5.3377 7.8410 0.7305 0.9158 1.2799 0.9651 2016 5.1550 5.1550 5.3377 7.7700 0.7305 0.9158 1.2629 0.9651 2017 5.1550 5.1550 5.3377 7.3180 0.7500 0.9158 1.2448 0.9651 2018 5.1550 5.1550 5.3590 7.0090 0.7500 0.9158 1.2262 b 0.9700 Source: Pinellas County Tax Collector a A separate taxing district established by referendum which affects only downtown properties. b "Other" includes Pinellas County Planning Council 0.0150; Juvenile Welfare Board 0.8981; SW Florida Water Management District 0.3131 Schedule 6 City Direct Rates Overlapping Rates City of Clearwater, Florida Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) 149 Fiscal Year Taxes Levied for the Fiscal Year Amount Percentage of Levy Collections in Subsequent Years Amount Percentage of Levy 2009 48,014,740$ 46,405,161$ 96.65% 233,462$ 46,638,623$ 97.13% 2010 45,469,638 43,912,287 96.57% 171,297 44,083,584 96.95% 2011 40,551,363 39,163,100 96.58% 63,385 39,226,485 96.73% 2012 39,162,295 37,874,151 96.71% 67,115 37,941,266 96.88% 2013 38,622,438 37,298,959 96.57% 61,670 37,360,629 96.73% 2014 39,888,516 38,521,211 96.57% 54,118 38,575,329 96.71% 2015 42,294,009 40,832,366 96.54% 54,685 40,887,051 96.67% 2016 45,099,493 43,545,722 96.55% 39,923 43,585,645 96.64% 2017 48,457,539 46,762,216 96.50% 25,722 46,787,938 96.55% 2018 52,482,716 50,620,131 96.45% - 50,620,131 96.45% Note 1:Discounts are allowed for early payment: 4% for November, 3% for December,2% for January, and 1% for February. No discount is allowed for payment in March. Penalties are assessed beginning in April. Note 2:Prior to fiscal year 2012, the Pinellas County Tax Collector did not allocate delinquent taxes collected by the original tax year levied. Consequently, all collections of delinquent taxes were applied to the immediately preceding tax year. Beginning with fiscal year 2012, the Tax Collector has allocated delinquent taxes collected by the original tax year levied. Schedule 7 Collected within the Fiscal Year of the Levy Total Collections to Date City of Clearwater, Florida Property Tax Levies and Collections Last Ten Fiscal Years 150 Taxpayer Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value REAL PROPERTY BELLWETHER PROP FLA 160,850,000$ 1 1.66% $127,897,800 1 1.32% B W C W HOSPITALITY LLC 91,144,021 2 0.94% P E P F SOLARIS KEY LLC 67,000,000 3 0.69% JOHN S TAYLOR PROPERTIES LLC 64,562,743 4 0.67% 47,960,000 3 0.49% CLEARMAR LLC 62,400,000 5 0.64% GRAND RESERVE BORROWER LLC 51,400,000 6 0.53% 40,000,000 6 0.41% SANDPEARL RESORT LLC 50,552,610 7 0.52% 42,196,200 4 0.43% SAND KEY ASSOC LTD PARTNERSHIP 49,500,000 8 0.51% 40,000,000 5 0.41% CENTRO NP CLEARWATER MALL LLC 45,810,750 9 0.47% 49,125,600 2 0.51% ZOM BAYSIDE ARBORS LTD 44,443,925 10 0.46% 29,421,800 9 0.30% W R I COUNTRYSIDE CENTRE LLC 33,750,000 7 0.35% WEINGARTEN NOSTAT INC 32,965,000 8 0.34% DUFF ANDREW R TRUSTEE 27,250,000 10 0.28% Total 687,664,049$ 7.09% 470,566,400$ 4.84% Source: Pinellas County Property Appraiser Schedule 8a City of Clearwater, Florida Principal Real Property Taxpayers Current Year and Nine Years Ago 2018 2009 151 Taxpayer Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value PERSONAL PROPERTY DUKE ENERGY FLORIDA (1) 97,033,148$ 1 20.11% 71,515,659$ 1 15.90% FRONTIER FLORIDA LLC (2) 22,076,599 2 4.57% 27,102,047 2 6.02% BRIGHT HOUSE NETWORKS LLC 16,644,930 3 3.45% 17,667,279 3 3.93% BAUSCH & LOMB INC 15,148,751 4 3.14% 6,088,670 5 1.35% INSTRUMENT TRANSFORMERS INC 10,834,248 5 2.24% 4,276,570 8 0.95% FLORIDA GAS TRANSMISSION 7,227,330 6 1.50% PUBLIX SUPER MARKET 7,098,894 7 1.47% OPAL SANDS RESORT 6,788,361 8 1.41% MONIN INC 6,749,021 9 1.40% 4,919,160 6 1.09% WOW! INTERNET, CABLE & PHONE 6,598,480 10 1.37% SANDPEARL RESORT LLC 6,905,510 4 1.54% GENERAL ELECTRIC CREDIT CO 4,896,354 7 1.09% MACY'S FLORIDA 3,575,750 9 0.79% HOLIDAY INN HOTEL & SUITES 3,155,270 10 0.70% Total 196,199,762$ 40.66% 150,102,269$ 33.36% Notes: (1) Duke Energy was Progress Energy in 2009. (2) Frontier Florida LLC was Verizon Florida, Inc. in 2009. Source: Pinellas County Property Appraiser Schedule 8b City of Clearwater, Florida Principal Personal Property Taxpayers Current Year and Nine Years Ago 2018 2009 152 Spring TrainingPublic Service Sales Tax Facility Water/Sewer Gas Stormwater Public Service Total PercentageFiscal Tax Revenue Revenue Intergovernmental Capital Revenue Revenue Revenue Tax Revenue Capital Primary of Personal PerYearBondsBondsRevenue BondsLeasesBondsBondsBondsBondsLeasesGovernmentIncome (a)Capita (a)2009 12,517$ 6,620$ 12,032$ 9,230$ 191,959$ 17,389$ 41,336$ 9,135$ 660$ 300,878$ 6.61% 2,738$ 2010 8,514 - 11,474 8,279 186,716 16,618 40,288 - 630 272,519 6.34% 2,531 2011 - - 10,896 8,722 182,887 15,826 39,200 - 808 258,339 5.69% 2,396 2012 - - 10,300 9,058 177,013 15,035 38,409 - 765 250,580 5.27% 2,322 2013 - - 9,686 8,249 170,934 14,367 37,498 - 512 241,246 5.10% 2,212 2014 - - 9,053 9,260 164,714 13,554 36,249 - 296 233,126 4.90% 2,132 2015 - - 8,397 14,033 159,642 12,566 34,791 - 279 229,708 4.52% 2,075 2016 - - 7,717 18,035 152,866 11,563 33,257 - 437 223,875 4.17% 1,992 2017 - - 7,014 21,241 150,862 10,555 31,680 - 1,141 222,493 4.00% 1,956.45 2018 - - 6,273 25,211 143,377 9,905 30,057 - 1,150 215,973 * *Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.(a) See Schedule 14 for personal income and population data.* Data not available.Schedule 9Business-Type ActivitiesGovernmental ActivitiesCity of Clearwater, FloridaRatios of Outstanding Debt by TypeLast Ten Fiscal Years(amounts in thousands, except per capita)153 Percentage of General Public Service Sales Tax Actual Taxable Fiscal Obligation Tax Revenue Revenue Value of Per Year Bonds Bonds Bonds Total Property (a) Capita (b) 2009 -$ 12,517$ 6,620$ 19,137$ 0.16% 174$ 2010 - 8,514 - 8,514 0.08% 79 2011 - - - - - - 2012 - - - - - - 2013 - - - - - - 2014 - - - - - - 2015 - - - - - - 2016 - - - - - - 2017 - - - - - - 2018 - - - - - - (a) See Schedule 5 for property value data. (b) Population data can be found in Schedule 14. Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Schedule 10 General Bonded Debt Outstanding City of Clearwater, Florida Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (amounts in thousands, except per capita) 154 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable a Debt Debt repaid with property taxes -$ n/a -$ Other debt Pinellas County Government Notes 9,578 13.9% 1,327 Pinellas County Government Capital Leases 499 13.9% 69 Pinellas County School District Certificates of Participation 65,254 13.9% 9,038 Pinellas County School District State Bonds b 1,666 13.9% 231 Pinellas County School District Capital Leases 5,612 13.9% 777 Subtotal, overlapping debt 11,442 City direct debt 31,484 Total direct and overlapping debt 42,926$ Sources: Assessed value data used to estimate applicable percentages provided by Pinellas County Property Appraiser. Debt outstanding data is provided by each respective governmental unit. Pinellas County Government debt is reported as of September 30, Pinellas County School Board debt is reported as of June 30. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Clearwater. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. a The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. b The School District State Bonds are secured by a pledge of the District's portion of the State-assessed motor vehicle license tax. The State's full faith and credit is also pledged for the bonds. (amounts in thousands) Schedule 11 City of Clearwater, Florida Direct and Overlapping Governmental Activities Debt As of September 30, 2018 155 Total Net Debt Applicable Total Net Debt to Limit Fiscal Debt Applicable Legal as Percentage Year Limit to Limit Debt Margin of Debt Limit 2009 1,942,045$ 271,594$ 1,670,451$ 13.98% 2010 1,672,462 248,800 1,423,662 14.88% 2011 1,982,900 232,771 1,750,129 11.74% 2012 1,911,916 224,409 1,687,507 11.74% 2013 1,904,237 215,753 1,688,484 11.33% 2014 1,955,083 208,318 1,746,765 10.66% 2015 2,057,302 204,926 1,852,376 9.96% 2016 2,170,214 199,317 1,970,897 9.18% 2017 2,307,618 199,611 2,108,007 8.65% 2018 2,466,049 193,379 2,272,670 7.84% Legal Debt Margin Calculation for Fiscal Year 2018: Assessed valuation of all real property 12,330,244$ Debt Limit (20% of assessed valuation per City Charter) 2,466,049 Debt applicable to limit: Revenue bonds 184,290$ Capital leases 26,361 Less: Amount set aside for repayment of bonded debt (17,272) 193,379 Legal debt margin 2,272,670$ Note: Per City Charter, the City's indebtedness, to include revenue, refunding, and improvement bonds shall not exceed 20 percent of the current assessed valuation of all real property located in the City. (amounts in thousands) Schedule 12 City of Clearwater, Florida Legal Debt Margin Information Last Ten Fiscal Years 156 Less: Net Fiscal Gross Operating Available Year Revenues Expenses Revenues Principal Interest Coverage 2009 8,574$ -$ 8,574$ 6,355$ 397$ 1.27 2010 7,987 - 7,987 6,620 132 1.18 2011 - - - - - - 2012 - - - - - - 2013 - - - - - - 2014 - - - - - - 2015 - - - - - - 2016 - - - - - - 2017 - - - - - - 2018 - - - - - - 2009 1,104$ -$ 1,104$ 515$ 561$ 1.03 2010 1,105 - 1,105 530 544 1.03 2011 1,099 - 1,099 550 526 1.02 2012 1,098 - 1,098 570 507 1.02 2013 1,084 - 1,084 590 485 1.01 2014 1,097 - 1,097 610 463 1.02 2015 1,100 - 1,100 635 439 1.02 2016 1,095 - 1,095 660 413 1.02 2017 1,090 1,090 685 380 1.02 2018 1,084 1,084 725 343 1.01 Improvement Revenue Refunding Bonds (c) 2009 18,987$ -$ 18,987$ 340$ 438$ 24.40 2010 19,680 - 19,680 355 425 25.23 2011 19,081 - 19,081 8,540 (d)291 2.16 2012 - - - - - - 2013 - - - - - - 2014 - - - - - - 2015 - - - - - - 2016 - - - - - - 2017 - - - - - - 2018 - - - - - - (a) Pledged revenues for the Infrastructure Sales Tax Revenue Bonds include the City's share of revenues derived by Pinellas County, Florida, from the levy and collection of a one-cent discretionary infrastructure sales surtax pursuant to Section 212.055(2), Florida Statutes, as amended. (b) Pledged revenues for the Spring Training Facility Revenue Bonds include payments received from the State of Florida pursuant to Section 212.20, Florida Statutes, and payments from Pinellas County, pursuant to an inter-local agreement dated December 1, 2000, along with related interest earnings. (c) Pledged revenues for the Improvement Revenue Refunding Bonds, issued October 2001, were public service taxes. Effective October 1, 2001, the Florida Legislature repealed the public service tax on communications and created a replacement communications services tax. Consequently the pledged revenues effective October 1, 2001, include both public service taxes and the new communications services taxes. (d) Principal payment in 2011 includes an additional principal payment in the amount of $8,170,000 on February 1, 2011 to redeem all outstanding principal as of that date. Debt Service Infrastructure Sales Tax Revenue Bonds (a) Spring Training Facility Revenue Bonds (b) Schedule 13 City of Clearwater, Florida Pledged-Revenue Coverage Last Ten Fiscal Years (amounts in thousands) Page 1 of 2 157 Less: Net Fiscal Gross Operating Available Maximum Year Revenues Expenses Revenues Principal Interest Coverage Coverage (a) Water & Sewer Utility Revenue Bonds 2009 56,952$ 36,305$ 20,647$ 7,195$ 3,773$ 1.88 2010 58,220 37,358 20,862 4,685 9,310 1.49 2011 61,473 40,304 21,169 4,935 9,627 1.45 2012 63,743 38,479 25,264 5,190 8,008 1.91 2013 64,665 37,001 27,664 5,465 8,333 2.00 2014 68,601 44,732 23,869 5,680 8,099 1.73 2015 72,303 47,680 24,623 5,885 7,675 1.82 2016 76,164 42,131 34,033 6,375 7,260 2.50 2017 81,897 50,177 31,720 6,660 5,974 2.51 2018 83,739 46,484 37,255 6,985 5,181 3.06 Gas Utility Revenue Bonds 2009 39,992$ 26,813$ 13,179$ 770$ 730$ 8.79 6.13 2010 40,515 28,517 11,998 775 704 8.11 5.75 2011 37,021 25,934 11,087 795 678 7.53 5.16 2012 36,916 24,919 11,997 795 649 8.31 5.58 2013 37,922 27,159 10,763 825 502 8.11 5.01 2014 41,963 29,173 12,790 925 384 9.77 6.11 2015 41,961 30,407 11,554 980 358 8.64 5.52 2016 39,142 26,591 12,551 995 328 9.49 5.99 2017 40,773 27,927 12,846 1,000 297 9.90 6.13 2018 45,119 30,307 14,812 650 266 16.17 7.07 Stormwater Utility Revenue Bonds 2009 14,231$ 7,684$ 6,547$ 1,050$ 1,814$ 2.29 2010 15,283 6,766 8,517 1,080 1,782 2.98 2011 15,656 7,917 7,739 1,120 1,741 2.70 2012 16,355 8,480 7,875 1,155 1,712 2.75 2013 16,230 8,217 8,013 1,100 1,421 3.18 2014 17,256 12,553 4,703 1,300 1,186 1.89 2015 18,123 11,529 6,594 1,375 1,084 2.68 2016 18,360 9,537 8,823 1,455 1,079 3.48 2017 18,685 9,042 9,643 1,500 1,039 3.80 2018 18,451 7,844 10,607 1,550 991 4.17 (a) Maximum debt service coverage is presented for continuing disclosure on the Gas System Debt Service Revenue Bonds and is based upon the maximum annual debt service for outstanding bonds and parity bonds. Schedule 13 (continued) City of Clearwater, Florida Pledged-Revenue Coverage Last Ten Fiscal Years (a) (amounts in thousands) Page 2 of 2 158 Year Population (a) Personal Income (thousands of dollars) Per Capita Personal Income (b) Median Age (c) School Enrollment (d) Unemployment Rate (e) 2009 109,907 4,548,831$ 41,388$ 45.0 14,975 11.4% 2010 107,685 4,295,878 39,893 45.3 14,704 11.0% 2011 107,805 4,542,471 42,136 46.3 14,375 9.7% 2012 107,906 4,756,281 44,078 46.5 14,210 7.9% 2013 109,065 4,726,441 43,336 46.8 14,010 6.6% 2014 109,340 4,754,759 43,486 47.0 14,160 5.9% 2015 110,679 5,084,704 45,941 47.5 14,132 5.1% 2016 112,387 5,364,344 47,731 47.8 14,000 4.7% 2017 113,723 5,568,788 48,968 47.6 13,652 3.7% 2018 115,589 * * * 13,207 2.9% (a) (b) (c) (d) (e) Note: * Data not available. Data is the latest published annual data available for an unspecified point in each year, not specifically September 30. Schedule 14 City of Clearwater, Florida Demographic and Economic Statistics Last Ten Fiscal Years Per capita personal income data for Pinellas County for 2009-2016 is from the University of Florida, Bureau of Economic and Business Research. Median household income data for 2017 is from the U.S. Census Bureau, American Fact Finder. Population data for the City of Clearwater is from the University of Florida, Bureau of Economic and Business Research. Median age data for Pinellas County for 2009-2016 is from the University of Florida, Bureau of Economic and Business Research. Data for 2017 is from the U.S. Census Bureau, American Fact Finder. School enrollment data for public schools located within the City of Clearwater is from the Pinellas County School District. Unemployment data for the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area for September of each year is from the Bureau of Labor Statistics. 159 Employer Employees Rank Percentage of Total County Employment Employees Rank Percentage of Total County Employment Pinellas County School District 15,000 1 2.99% 13,850 1 3.46% Bay Pines VA Medical Center 4,000 2 0.80% 3,500 4 0.87% City of St. Petersburg 3,500 3 0.70% 2,748 6 0.69% Raymond James 3,400 4 0.68% 2,600 7 0.65% All Children's Hospital 3,100 5 0.62% Pinellas County Board of County Commissioners 3,000 6 0.60% 2,041 10 0.51% Home Shopping Network 3,000 7 0.60% 4,000 3 1.00% St. Petersburg College 2,900 8 0.58% Pinellas County Sheriff 2,700 9 0.54% 2,509 8 0.63% Morton Plant Hospital 2,300 10 0.46% Fidelity Information Services 4,000 2 1.00% Nielson Media Research 3,000 5 0.75% Tech Data Corp.2,500 9 0.62% Total Employment b 502,038 400,055 a Data is for Pinellas County. City data is not available. b Source: Florida Research and Economic Database and Pinellas County Department of Economic Development. 2018 b 2009 Schedule 15 City of Clearwater, Florida Principal Employersa Current Year and Nine Years Ago 160 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function/Program General government 343.0 319.0 306.0 289.7 290.3 282.3 281.8 287.3 295.9 298.8 Public safety: Fire 212.0 211.0 205.0 201.0 201.0 201.0 201.0 201.0 204.0 204.0 Police 401.6 392.6 363.2 366.1 364.3 364.5 364.0 362.5 367.5 373.3 Physical environment 78.0 63.0 60.0 34.0 34.0 21.0 21.0 21.0 21.0 21.0 Transportation 23.0 23.0 21.0 21.0 21.0 34.0 34.0 34.0 35.0 35.0 Economic environment 11.0 11.0 11.0 9.0 9.0 10.0 10.0 12.0 10.4 11.0 Culture and recreation: Library 78.3 73.2 73.2 73.6 73.6 73.6 74.4 81.4 82.3 85.1 Parks & Rec 203.7 191.1 184.1 197.7 197.2 202.5 204.6 209.7 219.0 241.4 Water & Sewer Utility 169.0 164.0 166.0 167.0 167.0 176.0 184.0 187.0 188.0 196.0 Gas Utility 84.0 77.0 77.0 79.0 83.0 83.0 87.0 92.0 104.0 110.0 Solid Waste Utility 112.0 112.0 112.0 112.2 112.2 111.5 111.5 111.5 111.5 111.5 Stormwater Utility 47.0 46.0 47.0 48.0 50.0 49.0 49.0 52.0 52.0 52.0 Recycling 22.3 22.3 22.3 22.3 22.3 22.0 22.0 22.0 22.0 22.0 Marine 39.2 23.0 22.0 23.0 23.0 24.6 24.6 27.7 28.3 18.6 Clearwater Harbor Marina - 5.6 5.6 5.6 5.6 5.6 5.6 6.7 6.7 6.7 Aviation 1.7 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Parking System 20.7 31.6 31.6 30.8 30.6 33.7 33.7 35.8 41.3 44.8 Total 1,846.5 1,766.8 1,708.4 1,681.4 1,685.5 1,695.7 1,709.6 1,745.0 1,790.3 1,832.6 Source: City of Clearwater Office of Management and Budget Schedule 16 City of Clearwater, Florida Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years 161 2009 2010 2011 2012 2013 20142015 2016 2017 2018Function/ProgramGeneral government: Planning Commercial building permits issued 1,349 1,365 1,400 1,803 2,065 1,988 1,854 1,706 1,757 1,902 Residential building permits issued 4,273 4,794 5,102 4,941 4,985 5,756 6,546 6,987 9,134 8,702 Public safety: Police Average officer training hours 83 51 75 83 83 85 120 115 150 194Total volunteer training hours 735 39 355 385 412 286 246 1034 58 679 Fire Percentage of fire responses under 7.5 minutes 96% 90% 92% 95% 91% 93% 93% 91% 89% 89%Physical environment Square feet of sidewalks repaired/constructed 47,076 53,157 45,169 45,416 28,036 23,651 35,611 36,694 48,075 39,335 Transportation Miles of roadway resurfaced 10 5 8 8 0 8 15 15 6 17Economic environment Code enforcement cases brought to compliance 8,553 6,029 4,346 4,664 4,905 4,431 4,458 4,736 4,771 4,642 Human services City employees that mentor in area schools 20 22 18 20 20 6 5 16 13 17Culture and recreation: Library system Library visits 864,350 860,044 833,036 820,000 836,919 600,148 636,006 562,387 522,014 582,315 Circulation 1,161,059 1,147,428 1,087,976 1,058,038 1,099,988 1,019,984 987,430 869,469 891,597 857,232 Parks and recreation Recreation center visitations 868,445 724,769 759,807 738,577 719,393 517,378 696,094 714,657 689,750 708,562 Athletic program visitations 546,446 547,492 515,665 541,433 1,108,644 989,570 1,066,767 1,093,090 1,104,126 916,355 Water and Sewer Utility:Water customers 39,935 39,971 41,391 41,988 43,500 43,704 44,236 44,743 45,275 45,486 Volume of water pumped (million gallons/day) 11.52 10.76 11.32 10.90 11.00 12.10 12.10 11.70 11.90 11.40 Sewer customers 33,084 33,041 33,063 33,093 33,405 33,564 33,390 33,763 33,947 34,111 Miles of sewers cleaned 176 208 215 230 229 197 172 160 251 161 Gas Utility:Number of customers 19,527 19,581 19,807 20,029 20,313 20,719 21,049 21,566 22,532 23,893 Solid Waste Utility:Solid waste tonnage collected and disposed 112,851 110,905 112,936 114,317 116,830 113,218 117,214 124,917 123,425 122,890 Stormwater Utility:Number of equivalent residential units 98,436 99,536 100,125 100,461 98,195 100,629 101,663 102,798 103,742 104,105 Recycling Utility:Marketable tons recycled 12,114 9,564 9,250 8,605 8,143 11,716 12,079 13,467 13,438 11,503 * Note: No operating indicators are available for marine, aviation, parking and Clearwater Harbor Marina functions.City of Clearwater, FloridaOperating Indicators by Function/ProgramLast Ten Fiscal YearsSchedule 17162 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function/Program Public safety Fire Stations 8 8 8 8 8 8888 8 Police Stations 6 5 6 6 6 6777 6 Transportation Paved streets (miles) 313 314 315 316 316 320 321 322 322 324 Culture and recreation Library system Volumes in collection (thousands) 606 606 601 598 581 582 564 519 528 469 Parks and recreation Parks acreage 1400 1427 1427 1427 1427 1453 1455 1457 1457 1457 Recreational paths (miles) 16 16 16 16 16 18 22 22 22 22 Playgrounds 29 29 27 27 27 27 27 27 26 26 Baseball and softball fields 32 32 32 32 34 32 32 32 32 32 Soccer and football fields 20 20 20 20 18 20 20 20 21 21 Recreation centers 7 6 5 5 5 5555 6 Water & Sewer Utility Water mains (miles) 593 592 592 591 590 597 589 588 585 583 Sanitary sewer mains (miles) 362 363 363 363 363 364 364 369 370 370 Daily treatment capacity (millions of gallons)29 29 29 29 29 29 29 29 29 29 Gas Utility Gas mains (miles) 821 826 830 843 849 862 884 908 930 965 Stormwater Utility Stormwater mains (miles) 148 148 148 150 150 151 153 154 154 155 Marine Boat slips 207 207 207 203 189 189 189 189 189 189 Clearwater Harbor Marina Boat slips 0 126 126 126 126 126 126 126 126 126 Aviation Airpark spaces 177 177 177 177 177 177 177 177 177 177 Parking system Parking spaces 3497 3297 2475 a 2460 2319 2232 2312 2302 2345 2462 a The decrease in parking spaces for fiscal 2011 was loss of Sand Key Park and a management decision to not charge for certain lots. Sources: Various city departments Note: No capital asset indicators are available for the general government, physical environment, economic environment, human services, solid waste and recycling functions. Schedule 18 City of Clearwater, Florida Capital Asset Statistics by Function/Program Last Ten Fiscal Years 163 164 This Page Intentionally Left Blank 165 Other Information 166 Page 1 of 5 City of Clearwater, Florida Continuing Disclosure – Gas System Revenue Bonds Series 2013 and 2014 The System: Rates, Fees and Charges The City Council has established a schedule of rates and charges by ordinance, which includes a purchased gas cost adjustment provision allowing the City to pass-through to customers any increase or decrease in the purchased price of gas. The City is not subject to regulation by any State agency in establishing or revising its rates. Where competitive fuel sources or transportation service are available to the customer, the City Council has authorized the City Manager to enter into contract gas service rates at special rates and/or conditions as required to obtain/retain the customer load. Such contract service must meet the normal construction feasibility formula to insure profitable payback to the City. For the fiscal year ending September 30, 2018, contract rates applied to an average of 180 customer accounts per month and impacted 6.0% of total revenues. The rates charged by the System through September 30, 1996, were part of the Phase I Gas Rate Case implemented October 1, 1995, which was based on a comprehensive cost of service study performed by the Utility Advisory Services Group of the international accounting firm of Coopers & Lybrand, LLP (the “Rate Study”). This Phase I implementation resulted in an extensive overhaul of the Gas System customer rates, providing numerous classes of service and a modernized billing methodology. The new rates, effective October 1, 1996, were designed to be industry-based and responsive to the competitive energy challenges. The goal of the Rate Study was to establish rates which would be fair to all classes of customers, provide funding to implement planned expansion in both existing northern Pinellas County services area and into the newly acquired southwestern Pasco service area, and provide an adequate growth potential in return to the City of Clearwater to further offset the ad valorem tax rates (current impact is about 0.5 mills). As the result of experiences during the first seven months of the Phase I implementation, adjustments made to the Phase II rates were implemented October 1, 1996, and additional adjustments (Phase III) were implemented effective October 1, 1997. The total projected impact of both new phases of the rate case was $1.05 million, or less than 7.9% of total gas sales revenues. The rate ordinance containing the Phase II and Phase III rate changes was approved by the City Council on June 6, 1996. Gas rates for customer charges were increased effective April 1, 2005. The total estimated annual impact of this rate increase was $373,352. New rates, effective October 1, 2008, were designed to recover the costs of providing service to respective classes of customers. The goal of the “Cost of Service and Rate Study” was to establish rates which would be sufficient to meet Clearwater Gas System’s total revenue requirements and reflect cost of service consideration and practical rate implementation constraints as required. CLEARWATER GAS SYSTEMNATURAL GAS RATE BILLING FACTORSFOR MAY 1, 2018 - SEPTEMBER 30, 2018 BASED ON APPROVED GAS ADJUSTMENT FACTORSInterr. Contract Firm Natural Gas Rate Schedules NG RateNG Rate RS SMF MMF LMF SGS MGS LGS RAC GAC LAC SL SL w/M& NGV NSS IS CNS Relight(Non-Resl) (Non-Resl)Applicable Annual Therm Range NA (1 - NA (4 + NA (4 + NA (4 + 0 - 18,000- 100,000 NA (1 - NA (0 - NA (150 NA NA NA NA 100,000 NA or Other Rate Determinant 3 Units) Units) Units) Units) 17,999 99,999 & up 3 Units) 149 tons) tons & +)& upMonthly Customer Charge $12.00 $25.00 $40.00 $95.00 $25.00 $40.00 $95.00 $12.00 $25.00 $40.00 $20.00 $20.00 By Contract $50.00 $250.00 By Contract(For Central Pasco Territory) ($20.00) ($40.00) ($70.00) ($160.00) ($40.00) ($70.00) ($160.00) ($20.00) ($40.00) ($70.00) ($30.00) ($30.00) (By Contract) ($75.00) $400.00 (By Contract)if not prev. if not prev. if not prev.Non-Fuel Energy Charge/Thermbilled billed billedNon-Fuel Energy Charge $0.44 $0.44 $0.44 $0.44 $0.42 $0.38 $0.34 $0.20 $0.15 $0.10 $0.20 $0.35 By Contract $0.42 $0.24 By ContractEnergy Conservation Adj. (ECA) 0.25 0.25 0.25 0.25 0.25 0.25 0.25 NA NA NANA NA NA NA NA NARegulatory Imposition Adj. (RIA) 0.04 0.04 0.04 0.04 0.04 0.04 0.04 NA NANANA NA NA NA NA NAUsage & Inflation Adj. (UIA)0.050.050.050.050.030.030.03NANANANANANANANANATotal Non-Fuel Energy Charge$0.78 $0.78 $0.78 $0.78 $0.74 $0.70 $0.66 $0.20 $0.15 $0.10 $0.20 $0.35By Contract$0.42 $0.24By ContractPurchased Gas Adjustment (PGA)0.820.820.820.820.820.820.820.820.820.820.820.820.720.820.720.72Total Energy Charge/Therm1.60 1.60 1.60 1.60 1.56 1.52 1.48 1.02 0.97 0.92 1.02 1.17 0.72 1.24 0.96 0.72+ Non-Fuel + Non-FuelMinimum Monthly Bill $12.00 $25.00 $40.00 $95.00 $25.00 $40.00 $95.00 $12.00 $25.00 $40.00 $20.00 $20.00 By Contract $50.00 $250.00 Customer(For Central Pasco Territory) ($20.00) ($40.00) ($70.00) ($160.00) ($40.00) ($70.00) ($160.00) ($20.00) ($40.00) ($70.00) ($30.00) ($30.00) (By Contract) ($75.00) $400.00 Charge +@ premise @ premise @ premise + FAC + FAC + FAC + FAC + Non-Fuel ThermNon-Fuel ThermRate for Contract Rate for Contract# of Therms # of ThermsCompares to LP/Gallon Rate of 1.46$ 1.46$ 1.46$ 1.46$ 1.43$ 1.39$ 1.35$ 0.93$ 0.89$ 0.84$ 0.93$ 1.07$ 0.66$ 1.13$ 0.88$ with 6.0% Franchise1.55$ 1.55$ 1.55$ 1.55$ 1.51$ 1.47$ 1.44$ 0.99$ 0.94$ 0.89$ 0.99$ 1.13$ 0.70$ 1.20$ 0.93$ Change from 9/2014 Therm Rate(0.15)$ (0.15)$ (0.15)$ (0.15)$ (0.15)$ (0.13)$ (0.11)$ (0.12)$ (0.12)$ (0.12)$ (0.12)$ (0.12)$ (0.13)$ (0.16)$ (0.17)$ (0.13)$ % Change from 9/2014 Therm Rate-6.6% -6.6% -6.6% -6.6% -7.0% -6.2% -5.4% -6.4% -6.6% -6.7% -6.4% -6.1% -7.3% -7.4% -9.8% -8.9%Utility Tax Note:Fuel Rate per Therm 10/01/1973 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.055 $0.069Non-Utility Taxable Fuel/Therm $0.751 $0.751 $0.751 $0.751 $0.751 $0.751 $0.751 $0.751 $0.751 $0.751 $0.751 $0.751 $0.651 $0.751 $0.665 $0.651BTU FACTOR = THERMS/100 CUBIC FEET (CCF) 10/201711/201712/201701/201802/201803/201804/201805/201806/201807/201808/201809/2018FY 17/18 Avg.Firm Service Rates 1.043 1.046 1.044 1.043 1.042 1.044 1.045 1.045 1.0431.044 1.041 1.0431.043583333Interruptible Service Rates 1.022 1.025 1.024 1.022 1.022 1.024 1.024 1.025 1.023 1.023 1.021 1.0221.023083333City of Clearwater, Florida Continuing Disclosure - Gas System Revenue Bonds Page 2 of 5 Series 2013 and 2014__________________________________________________________ 167 Page 3 of 5 Table 1 Breakdown of Transportation Capacity Phase II (FTS-1) Phase III (FTS-2) Total MMBtu Per Day MMBtu Per Day MMBtu Contract Period 2/01/17 - 1/31/27 2/1/14 - 2/28/25 Per Day October 170,438 41,788 212,226 Nov-Mar 1,543,069 268,931 1,812,000 April 216,570 53,430 270,000 May-Sept 711,756 206,244 918,000 Total Annual 2,641,833 570,393 3,212,226 The two natural gas transmission companies that serve within the State of Florida are Florida Gas Transmission (FGT) and Gulfstream. Currently FGT is the sole provider of transportation service to the City. FGT is owned by Citrus Corp. Citrus Corp is owned 50% by Energy Transfer Partners, LLC AND 50% by Kinder Morgan, Inc. FGT is operated by Panhandle Energy, a subsidiary of Energy Transfer Partners. The City joined Florida Gas Utility (FGU) in October 2000 by Resolution 00-35. FGU is responsible for the purchase & management of the City's natural gas supply. An updated All Requirements Gas Service Agreement, which was approved by Resolution 02-02 in January 2002, required the City to purchase 100% of its supply through FGU. FGU was formed through an Interlocal Agreement among its members. The Interlocal Agreement became effective on September 1, 1989 and consisted of five municipal utilities. Over the next several years, additional electric and gas distribution utilities joined FGU, bringing its current membership to 23. In addition, the City has entered into a Gas Supply & Transportation Agreement with Peoples Gas System (PGS), dated 12/02/04, to purchase natural gas to serve customers located in our Central Pasco territory, generally east of the Suncoast Parkway in Pasco County. The City received a letter from FGU Council, dated 8/31/04, granting the City permission to utilize TECO Peoples Gas as a third party gas supplier since FGU is unable and unwilling to provide gas to the City within the meaning of the provisions of Section 3 (a)(i) and (ii) of the All Requirements Gas Service Agreement between the City and FGU. The City has two Firm Transportation Service agreements (FTS-1 & FTS-2) with FGT in order to deliver natural gas to the City's four gate stations. FGU is currently managing the City's Phase II (FTS-1) and Phase III (FTS-2) transportation capacity on a daily basis. Table 1 shows the breakdown of the City's annual gas supply entitlements with FGT. The total annual entitlement is 3,212,226 decatherms of natural gas transportation. City of Clearwater, Florida Continuing Disclosure - Gas System Revenue Bonds Series 2013 and 2014 GAS SUPPLY On August 1, 1990, the Federal Energy Regulatory Commission (FERC) deregulated the natural gas pipeline industry. This allows other natural gas suppliers and local distribution companies, like the City of Clearwater, to transport gas over the Florida Gas Transmission (FGT) pipelines as opposed to purchasing natural gas supply from only FGT. 168 169 Page 4 of 5 City of Clearwater, Florida Continuing Disclosure – Gas System Revenue Bonds Series 2013 and 2014 Service Area The Clearwater Gas System (CGS) is owned and operated as an enterprise utility by the City of Clearwater. CGS operates over 965 miles of underground gas main and handles the supply and distribution of both natural and propane (LP) gas throughout northern Pinellas County and western Pasco County. As a “full service” gas utility, CGS provides gas appliance sales, installation of inside customer gas piping, domestic and commercial gas equipment service, construction and maintenance of underground gas mains and service lines, and 24-hour response to any gas emergency within the service area. The Florida Public Service Commission and the Federal Department of Transportation regulate CGS for safety. CGS has been serving customers in the Clearwater area for over 95 years (since 1923) when operations began with a manufactured gas plant operation from coal and coke. In 1959, when natural gas transmission lines were finally extended to the Florida peninsula, CGS discontinued manufacturing gas and began receiving piped natural gas from Florida Gas Transmission. Clearwater Gas System serves over 23,893 customers in a 330 square mile service territory, which includes 20 municipalities as well as the unincorporated areas of northern Pinellas County and western Pasco County. The Pinellas County service territory is 158 square miles and extends generally from Ulmerton and Walsingham Roads on the south to the Pasco County line on the north and from the Gulf of Mexico on the West to the Hillsborough County line on the east. This includes all of the Pinellas beach communities south to Redington Beach. The Pasco County service territory is 172 square miles and extends from the Gulf of Mexico on the West inland about 20 miles to just east of State Road 41 and Land O’ Lakes and from the Pinellas and Hillsborough County lines on the South to generally State Road 52 on the north. The CGS service territory extends 42.3 miles from the southwestern-most to the northwestern-most points. Clearwater Gas System prides itself in being a competitive and public service-minded utility, providing safe, economical and environmentally-friendly gas, which is made in America, available in our communities for all of the homes and businesses in our service area, with special focus on the residential customers who make up 89% of our customer base. Page 5 of 5 City of Clearwater, Florida Continuing Disclosure - Gas System Revenue Bonds Series 2013 and 2014 Location Meters Percentage Belleair 494 2.18% Belleair Beach 236 1.04% Belleair Bluffs 41 0.18% Belleair Shores 33 0.15% Clearwater 7,068 31.13% Dunedin 1,329 5.85% Indian Rocks Beach 131 0.58% Indian Shores 132 0.58% Largo 1,100 4.85% New Port Richey 76 0.33% North Redington Beach 68 0.30% Oldsmar 153 0.67% Port Richey 18 0.08% Redington Beach 184 0.81% Redington Shores 89 0.39% Safety Harbor 684 3.01% Tarpon Springs 1,636 7.21% Unincorporated Areas Pasco 4,198 18.49% Central Pasco 1,868 8.23% Unincorporated Areas Pinellas 3,164 13.94% Total 22,702 100.00% Peak Monthly % of Gross Customer Name Therms Revenues New Port Richey Hospital, Inc. 79,798.8 1.97% Metal Industries 116,546.1 1.95% Morton Plant Hospital 108,529.2 1.94% Ajax Paving Industries 107,107.1 1.86% Mease Hospital 93,274.9 1.44% Average No. Gas Gas Customers Volume Sales Interruptible (including Gas Station) 19 30.19% 14.75% Residential 20,257 15.32% 25.67% Commercial (excluding Gas Station) 2,426 54.49% 59.57% Therms Revenues Interruptible (including Gas Station) 7,642,917.9 5,407,162$ Residential 3,879,778.6 9,409,335 Commercial (excluding Gas Station) 13,793,998.1 21,833,439 Totals 25,316,694.6 36,649,936$ As of September 30, 2018 the System's active natural gas customers were located as shown in the following table: The following table shows the five largest interruptible customers by peak monthly consumption and the percent of the System's revenues derived from such customers during the 12 months ending September 30, 2018: The following table shows the breakdown of the System's customers by category as well as the volume of gas sold and the sales revenues generated by each category for the year ended September 30, 2018: 170 171 Page 1 of 3 City of Clearwater, Florida Continuing Disclosure – Water and Sewer Revenue Refunding Bonds Series 2003, 2009B, 2011, 2014, 2017 and 2017B; and Revenue Bonds Series 2009A Historical Financial Information Water System: Source and Volume of Water Pumped (in million gallons per day, averaged over the fiscal year) FY City Wells County Total 2014 5.2 6.9 12.1 2015 7.0 5.1 12.1 2016 8.0 3.7 11.7 2017 6.8 5.1 11.9 2018 6.4 5.0 11.4 Historical Growth in Number of Water Customers (all figures are as of September of the year indicated) Potable Reclaimed Total Water Water Water Service Service Service FY Customers Customers Customers 2014 36,651 7,053 43,704 2015 37,018 7,218 44,236 2016 37,302 7,441 44,743 2017 37,598 7,677 45,275 2018 37,773 7,713 45,486 Ten Largest Water Customers Fiscal Year Ending September 30, 2018 Water Used Revenues Name of User (in 100 Cubic Feet) Produced 1. CITY OF CLEARWATER 92,097 1,172,934$ 2. CHURCH OF SCIENTOLOGY 124,220 873,512 3. MORTON PLANT HOSPITAL 87,336 746,942 4. PINELLAS COUNTY SCHOOLS 41,119 431,661 5. PINELLAS COUNTY GOVERNMENT 15,530 252,816 6. K&P CLEARWATER ESTATE LLC 29,246 213,789 7. SANDPEARL RESORT LLC 29,608 202,969 8. CF PARK PLACE GARDENS LLC 28,670 190,373 9. SHERATON SAND KEY 31,491 186,615 10. CLEARWATER HOUSING AUTHORITY 25,793 173,699 505,110 4,445,310$ Reclaimed Water System: Daily Flow Year MGD 2014 5.3 2015 4.7 2016 5.2 2017 6.4 2018 5.5 172 Page 2 of 3 City of Clearwater, Florida Continuing Disclosure – Water and Sewer Revenue Refunding Bonds Series 2003, 2009B, 2011, 2014, 2017 and 2017B; and Revenue Bonds Series 2009A Sewer System: Average Sewage Flow and Historical Growth in Number of Sewer Customers (as of September of the year indicated) Sewer Year Flow in MGD Customers 2014 12.3 32,815 2015 13.8 33,390 2016 13.5 33,763 2017 12.5 33,947 2018 12.5 34,111 Ten Largest Sewer Customers Fiscal Year Ending September 30, 2018 Sewer Used Revenues Name of User (in 100 Cubic Feet) Produced 1. MORTON PLANT HOSPITAL 81,605 786,072$ 2. CITY OF CLEARWATER 41,923 712,607 3. CHURCH OF SCIENTOLOGY FSO INC 91,618 699,610 4. PINELLAS COUNTY SCHOOLS 39,834 546,054 5. SHERATON SAND KEY 31,490 243,735 6. CP CLEARWATER LLC (HILTON) 28,912 230,527 7. PINELLAS COUNTY GOVERNMENT 9,178 224,132 8. CF PARK PLACE GARDENS LLC 28,670 224,097 9. K&P CLEARWATER ESTATE LLC 29,245 223,719 10. CLEARWATER HOUSING AUTHORITY 25,561 223,105 408,036 4,113,658$ Rates, Fees and Charges The City uses a three-tiered rate structure for water and sewer usage. The base rate for water includes a minimum usage for residential and nonresidential water rates. Any usage over the minimum is billed at one rate per 1,000 gallons up to a designated level and at a second rate for usage over that level. For irrigation, there is a base rate, with no usage allowance, and a charge per 1,000 gallons of water usage up to a designated level and a higher charge for usage over that amount. The sewer base rate includes a minimum usage and a fixed charge per 1,000 gallons of water usage over the basic allowance. The minimum usage and second and third tier usage levels vary with the size of the meters. For fiscal year 2018 there were no changes to the three- tiered rate structure for water or sewer usage. 173 Page 3 of 3 City of Clearwater, Florida Continuing Disclosure – Water and Sewer Revenue Refunding Bonds Series 2003, 2009B, 2011, 2014, 2017 and 2017B; and Revenue Bonds Series 2009A Residential and October 1, October 1, October 1, October 1, October 1, Nonresidential Water Rates 2014 2015 2016 2017 2018 Minimum - Under 1 inch 18.60$ 19.44$ 20.16$ 21.42$ 22.29$ 1 inch 43.41 45.36 47.04 49.98 52.01 1.5 inch 620.10 648.00 672.00 714.00 743.00 2 inch 1,444.86 1,509.88 1,565.76 1,663.62 1,731.19 3 or 2 inch manifold 2,226.21 2,326.39 2,412.48 2,563.26 2,667.37 4 inch 4,284.95 4,477.77 4,643.52 4,933.74 5,134.13 6 inch 11,006.94 11,502.25 11,928.00 12,673.50 13,188.25 8 inch 18,603.29 19,440.44 20,160.00 21,420.00 22,290.00 Additional charges are assessed for usage in excess of designated minimums. Size of Meter Rates for Irrigation October 1, October 1, October 1, October 1, October 1, (Lawn) Meters 2014 2015 2016 2017 2018 Minimum - Under 1 inch 6.63$ 6.93$ 7.19$ 7.64$ 7.94$ 1 inch 19.90 20.80 21.58 22.93 23.85 1.5 inch 99.59 104.07 107.97 114.72 119.31 2 inch 278.84 291.39 302.32 321.22 334.06 3 or 2 inch manifold 551.03 575.83 597.42 634.76 660.15 4 inch 1,062.24 1,110.04 1,151.67 1,223.65 1,272.60 6 inch 3,206.65 3,350.95 3,476.61 3,693.90 3,841.65 Size of Meter October 1, October 1, October 1, October 1, October 1, Sewer Rates 2014 2015 2016 2017 2018 Minimum - Under 1 inch 25.62$ 26.76$ 27.75$ 29.49$ 30.66$ 1 inch 59.78 62.44 64.75 68.81 71.54 1.5 inch 854.00 892.00 925.00 983.00 1,022.00 2 inch 1,989.82 2,078.36 2,155.25 2,290.39 2,381.26 3 or 2 inch manifold 3,065.86 3,202.28 3,320.75 3,528.97 3,668.98 4 inch 5,901.14 6,163.72 6,391.75 6,792.53 7,062.02 6 inch 15,158.50 15,833.00 16,418.75 17,448.25 18,140.50 8 inch 25,620.00 26,760.00 27,750.00 29,490.00 30,660.00 Per 1,000 gallons of water used over the allowed minimum 8.54 8.92 9.25 9.83 10.22 Size of Meter Additional Indebtedness No additional indebtedness was incurred for capital improvements to the water and sewer systems. Additional indebtedness in the amount of $103,584 was incurred for the lease purchase of capital equipment. 174 Page 1 of 1 City of Clearwater, Florida Continuing Disclosure – Stormwater System Revenue Refunding Bonds Series 2012, 2013 and 2014 Rates, Fees, and Charges The City uses a measurement of one equivalent residential unit or ERU as the basis for the stormwater management utility fee. The rates per ERU from the inception of the utility are as follows: January 1, 1991 $3.00 October 1, 2008 $11.14 October 1, 1998 4.00 October 1, 2009 11.80 October 1, 1999 4.17 October 1, 2010 12.51 October 1, 2000 4.35 October 1, 2011 13.04 October 1, 2001 4.54 October 1, 2012 13.40 January 1, 2002 6.13 October 1, 2013 13.77 October 1, 2002 7.16 October 1, 2014 14.15 October 1, 2003 8.01 October 1, 2015 14.33 October 1, 2004 8.65 October 1, 2016 14.51 October 1, 2005 9.35 October 1, 2017 14.58 October 1, 2006 9.71 October 1, 2018 14.65 October 1, 2007 10.51 October 1, 2019 14.72 Single-family homes, multifamily units, condominium units, apartments and mobile homes are rated as one ERU per dwelling unit. Nonresidential property is charged at the rate of 1,830 square feet of impervious area per ERU. HISTORICAL NET REVENUES 2014 2015 2016 2017 2018 Net Operating Revenues (Excluding Depreciation) 4,207,288$ 5,916,286$ 8,386,312$ 9,528,117$ 10,611,921$ Interest Income and other Non-operating Revenues (Expenses) 495,462 677,829 437,129 114,729 (4,642) Total Net Revenues 4,702,750$ 6,594,115$ 8,823,441$ 9,642,846$ 10,607,279$ Maximum Annual Debt Service 2,568,762$ 2,568,762$ 2,568,762$ 2,568,762$ 2,568,762$ Coverage 1.83 2.57 3.43 3.75 4.13 175 City of Clearwater, Florida Fire Services Program Pursuant to agreements between the City of Clearwater, the Pinellas County Fire Authority and the Pinellas County Emergency Medical Services Authority, the City has provided fire and emergency medical services to the respective authorities. With respect to fire services, the services are provided for the benefit of properties located outside the corporate limits of the City, but within a designated service area. Emergency medical services are provided for the benefit of persons residing both inside and outside the corporate limits of the City, based on the Authority's nearest unit dispatch policy. With respect to the Fire Services Program, a budget was prepared by Fire Department personnel covering proposed expenditures for fiscal year ending September 30, 2018, for the Fire Department as a whole. Since the funding for the Emergency Medical Services Program is based on the level fixed in prior years, the Fire Services Program budget is essentially the residual obtained by deducting the approved level of funding for the Emergency Medical Services Program from the budgeted amounts included in the total Fire Department budget. This budget was submitted to, and duly approved by, the relevant Authority prior to the commencement of the fiscal year. Income received from Pinellas County Fire Protection Authority and valid program expenditures for the Fire Services Program for the fiscal year ended September 30, 2018 are summarized below. Total Revenue Received from Pinellas County Fire Protection Authority 1,977,758$ Total Fire Service Expenditures for Fiscal Year Ended September 30, 2018 18,955,427$ The Fire Service Program does not currently utilize an equipment reserve. 176 This Page Intentionally Left Blank 177 Single Audit / Grants Compliance 178 This Page Intentionally Left Blank ZĞƉŽƌƚŽĨ/ŶĚĞƉĞŶĚĞŶƚƵĚŝƚŽƌŽŶ/ŶƚĞƌŶĂůŽŶƚƌŽůŽǀĞƌ&ŝŶĂŶĐŝĂůZĞƉŽƌƚŝŶŐ ĂŶĚŽŶŽŵƉůŝĂŶĐĞĂŶĚKƚŚĞƌDĂƚƚĞƌƐĂƐĞĚŽŶĂŶƵĚŝƚŽĨ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ WĞƌĨŽƌŵĞĚŝŶĐĐŽƌĚĂŶĐĞǁŝƚŚ'ŽǀĞƌŶŵĞŶƚƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ 7RWKH+RQRUDEOH0D\RUDQG&LW\&RXQFLO0HPEHUV &LW\RI&OHDUZDWHU)ORULGD :HKDYHDXGLWHGLQDFFRUGDQFHZLWKWKHDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD DQGWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQGovernment Auditing StandardsLVVXHGE\WKH &RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHVWKHILQDQFLDOVWDWHPHQWVRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVV W\SHDFWLYLWLHVHDFKPDMRUIXQGDQGWKHDJJUHJDWHUHPDLQLQJIXQGLQIRUPDWLRQRIWKH&LW\RI&OHDUZDWHU)ORULGD WKH³&LW\´DVRIDQGIRUWKH\HDUHQGHG6HSWHPEHUDQGWKHUHODWHGQRWHVWRWKHILQDQFLDOVWDWHPHQWV ZKLFK FROOHFWLYHO\ FRPSULVH WKH &LW\¶V EDVLF ILQDQFLDO VWDWHPHQWV DQG KDYH LVVXHG RXU UHSRUW WKHUHRQ GDWHG $SULO:HKDYHDOVRDXGLWHGWKHILQDQFLDOVWDWHPHQWVRIHDFKRIWKH&LW\¶VQRQPDMRUJRYHUQPHQWDO IXQGVQRQPDMRUHQWHUSULVHIXQGVLQWHUQDOVHUYLFHDQGILGXFLDU\IXQGVSUHVHQWHGDVVXSSOHPHQWDU\LQIRUPDWLRQ LQWKHDFFRPSDQ\LQJFRPELQLQJDQGLQGLYLGXDOIXQGVWDWHPHQWVDVRIDQGIRUWKH\HDUHQGHG6HSWHPEHU DVOLVWHGLQWKHWDEOHRIFRQWHQWV /ŶƚĞƌŶĂůŽŶƚƌŽůŽǀĞƌ&ŝŶĂŶĐŝĂůZĞƉŽƌƚŝŶŐ ,QSODQQLQJDQGSHUIRUPLQJRXUDXGLWVRIWKHILQDQFLDOVWDWHPHQWVZHFRQVLGHUHGWKH&LW\¶VLQWHUQDOFRQWURORYHU ILQDQFLDO UHSRUWLQJ ³LQWHUQDO FRQWURO´ WR GHWHUPLQH WKH DXGLW SURFHGXUHV WKDW DUH DSSURSULDWH LQ WKH FLUFXPVWDQFHVIRUWKHSXUSRVHRIH[SUHVVLQJRXURSLQLRQVRQWKHILQDQFLDOVWDWHPHQWVEXWQRWIRUWKHSXUSRVHRI H[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\ZHGRQRWH[SUHVVDQ RSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURO $deficiency LQLQWHUQDOFRQWURO H[LVWVZKHQWKHGHVLJQRURSHUDWLRQRIDFRQWUROGRHVQRWDOORZPDQDJHPHQWRU HPSOR\HHV LQ WKH QRUPDO FRXUVH RI SHUIRUPLQJ WKHLU DVVLJQHG IXQFWLRQV WR SUHYHQW RU GHWHFW DQG FRUUHFW PLVVWDWHPHQWV RQ D WLPHO\ EDVLV $material weakness LV D GHILFLHQF\ RU D FRPELQDWLRQRI GHILFLHQFLHV LQ LQWHUQDOFRQWUROVXFKWKDWWKHUHLVDUHDVRQDEOHSRVVLELOLW\WKDWDPDWHULDOPLVVWDWHPHQWRIWKHHQWLW\¶VILQDQFLDO VWDWHPHQWVZLOOQRWEHSUHYHQWHGRUGHWHFWHGDQGFRUUHFWHGRQDWLPHO\EDVLV$significant deficiency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ŽŵƉůŝĂŶĐĞĂŶĚKƚŚĞƌDĂƚƚĞƌƐ $VSDUWRIREWDLQLQJUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKH&LW\¶VILQDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDO PLVVWDWHPHQWZHSHUIRUPHGWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQG JUDQWDJUHHPHQWVQRQFRPSOLDQFHZLWKZKLFKFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQWKHGHWHUPLQDWLRQRI ILQDQFLDOVWDWHPHQWDPRXQWV+RZHYHUSURYLGLQJDQRSLQLRQRQFRPSOLDQFHZLWKWKRVHSURYLVLRQVZDVQRWDQ REMHFWLYHRIRXUDXGLWDQGDFFRUGLQJO\ZHGRQRWH[SUHVVVXFKDQRSLQLRQ7KHUHVXOWVRIRXUWHVWVGLVFORVHGQR LQVWDQFHV RI QRQFRPSOLDQFH RU RWKHU PDWWHUV WKDW DUH UHTXLUHG WR EH UHSRUWHG XQGHUGovernment Auditing Standards 179 ŝƚǇ͛ƐZĞƐƉŽŶƐĞƚŽ&ŝŶĚŝŶŐ 7KH&LW\¶VUHVSRQVHWRWKHILQGLQJLGHQWLILHGLQRXUDXGLWLVGHVFULEHGLQWKHDFFRPSDQ\LQJVFKHGXOHRIILQGLQJV DQGTXHVWLRQHGFRVWV7KH&LW\¶VUHVSRQVHZDVQRWVXEMHFWHGWRWKHDXGLWLQJSURFHGXUHVDSSOLHGLQWKHDXGLWRI WKHILQDQFLDOVWDWHPHQWVDQGDFFRUGLQJO\ZHH[SUHVVQRRSLQLRQRQLW WƵƌƉŽƐĞŽĨƚŚŝƐZĞƉŽƌƚ 7KHSXUSRVHRIWKLVUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURODQGFRPSOLDQFHDQG WKHUHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKHHQWLW\¶VLQWHUQDOFRQWURORURQ FRPSOLDQFH 7KLV UHSRUW LV DQ LQWHJUDO SDUW RI DQ DXGLW SHUIRUPHG LQ DFFRUGDQFH ZLWKGovernment Auditing Standards LQFRQVLGHULQJWKHHQWLW\¶VLQWHUQDOFRQWURODQGFRPSOLDQFH$FFRUGLQJO\WKLVFRPPXQLFDWLRQLVQRW VXLWDEOHIRUDQ\RWKHUSXUSRVH 7DPSD)ORULGD $SULO 180 ZĞƉŽƌƚŽĨ/ŶĚĞƉĞŶĚĞŶƚƵĚŝƚŽƌŽŶŽŵƉůŝĂŶĐĞĨŽƌĂĐŚDĂũŽƌ&ĞĚĞƌĂůWƌŽŐƌĂŵĂŶĚ ^ƚĂƚĞ&ŝŶĂŶĐŝĂůƐƐŝƐƚĂŶĐĞWƌŽũĞĐƚ͕ĂŶĚŽŶ/ŶƚĞƌŶĂůŽŶƚƌŽůŽǀĞƌŽŵƉůŝĂŶĐĞZĞƋƵŝƌĞĚ ďǇƚŚĞhŶŝĨŽƌŵ'ƵŝĚĂŶĐĞĂŶĚŚĂƉƚĞƌϭϬ͘ϱϱϬ͕ZƵůĞƐŽĨƚŚĞƵĚŝƚŽƌ'ĞŶĞƌĂů 7RWKH+RQRUDEOH0D\RUDQG&LW\&RXQFLO0HPEHUV &LW\RI&OHDUZDWHU)ORULGD ZĞƉŽƌƚŽŶŽŵƉůŝĂŶĐĞĨŽƌĂĐŚDĂũŽƌ&ĞĚĞƌĂůWƌŽŐƌĂŵĂŶĚ^ƚĂƚĞ&ŝŶĂŶĐŝĂůƐƐŝƐƚĂŶĐĞWƌŽũĞĐƚ :H KDYH DXGLWHG WKH &LW\ RI &OHDUZDWHU )ORULGD¶V WKH ³&LW\´FRPSOLDQFH ZLWK WKH W\SHV RI FRPSOLDQFH UHTXLUHPHQWVGHVFULEHGLQWKH20%&RPSOLDQFH6XSSOHPHQWDQGWKHUHTXLUHPHQWVGHVFULEHGLQWKH)ORULGD 'HSDUWPHQWRI)LQDQFLDO6HUYLFHVState Projects Compliance SupplementWKDWFRXOGKDYHGLUHFWDQGPDWHULDO HIIHFW RQ HDFK RI LWV PDMRU IHGHUDO SURJUDPV DQG VWDWH ILQDQFLDO DVVLVWDQFH SURMHFWV IRU WKH \HDU HQGHG 6HSWHPEHU7KH&LW\¶VPDMRUIHGHUDOSURJUDPVDQGVWDWHILQDQFLDODVVLVWDQFHSURMHFWVDUHLGHQWLILHGLQ WKHVXPPDU\RIDXGLWRU¶VUHVXOWVVHFWLRQRIWKHDFFRPSDQ\LQJVFKHGXOHRIILQGLQJVDQGTXHVWLRQHGFRVWV DĂŶĂŐĞŵĞŶƚ͛ƐZĞƐƉŽŶƐŝďŝůŝƚǇ 0DQDJHPHQWLVUHVSRQVLEOHIRUFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWV DSSOLFDEOHWRLWVIHGHUDOSURJUDPVDQGVWDWHDVVLVWDQFHSURMHFWV ƵĚŝƚŽƌ͛ƐZĞƐƉŽŶƐŝďŝůŝƚǇ 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQFRPSOLDQFHIRUHDFKRIWKH&LW\¶VPDMRUIHGHUDOSURJUDPVDQGVWDWH ILQDQFLDODVVLVWDQFHSURMHFWVEDVHGRQRXUDXGLWRIWKHW\SHVRIFRPSOLDQFHUHTXLUHPHQWVUHIHUUHGWRDERYH:H FRQGXFWHG RXU DXGLW RI FRPSOLDQFH LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHVRI$PHULFDWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQGovernment Auditing Standards LVVXHGE\WKH&RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHVDQGWKHDXGLWUHTXLUHPHQWVRI7LWOH86Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ³8QLIRUP*XLGDQFH´DQG&KDSWHU5XOHVRIWKH$XGLWRU*HQHUDO ³&KDSWHU´ 7KRVHVWDQGDUGVWKH8QLIRUP*XLGDQFHDQG&KDSWHUUHTXLUHWKDWZHSODQDQGSHUIRUPWKHDXGLWWR REWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUQRQFRPSOLDQFHZLWKWKHW\SHVRIFRPSOLDQFHUHTXLUHPHQWVUHIHUUHG WRDERYHWKDWFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQDPDMRUIHGHUDOSURJUDPDQGVWDWHILQDQFLDODVVLVWDQFH SURMHFWRFFXUUHG$QDXGLWLQFOXGHVH[DPLQLQJRQDWHVWEDVLVHYLGHQFHDERXWWKH&LW\¶VFRPSOLDQFHZLWKWKRVH UHTXLUHPHQWVDQGSHUIRUPLQJVXFKRWKHUSURFHGXUHVDVZHFRQVLGHUHGQHFHVVDU\LQWKHFLUFXPVWDQFHV :HEHOLHYHWKDWRXUDXGLWSURYLGHVDUHDVRQDEOHEDVLVIRURXURSLQLRQRQFRPSOLDQFHIRUHDFKPDMRUIHGHUDO SURJUDPDQGVWDWHILQDQFLDODVVLVWDQFHSURMHFW+RZHYHURXUDXGLWGRHVQRWSURYLGHDOHJDOGHWHUPLQDWLRQRIWKH &LW\ VFRPSOLDQFH KƉŝŶŝŽŶŽŶĂĐŚDĂũŽƌ&ĞĚĞƌĂůWƌŽŐƌĂŵƐĂŶĚ^ƚĂƚĞ&ŝŶĂŶĐŝĂůƐƐŝƐƚĂŶĐĞWƌŽũĞĐƚƐ ,QRXURSLQLRQWKH&LW\FRPSOLHGLQDOOPDWHULDOUHVSHFWVZLWKWKHW\SHVRIFRPSOLDQFHUHTXLUHPHQWVUHIHUUHGWR DERYHWKDWFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQHDFKRILWVPDMRUIHGHUDOSURJUDPVDQGVWDWHILQDQFLDO DVVLVWDQFHSURMHFWVIRUWKH\HDUHQGHG6HSWHPEHU 181 ZĞƉŽƌƚŽŶ/ŶƚĞƌŶĂůŽŶƚƌŽůŽǀĞƌŽŵƉůŝĂŶĐĞ 0DQDJHPHQW RI WKH &LW\ LV UHVSRQVLEOH IRU HVWDEOLVKLQJ DQG PDLQWDLQLQJ HIIHFWLYH LQWHUQDO FRQWURO RYHU FRPSOLDQFHZLWKWKHW\SHVRIFRPSOLDQFHUHTXLUHPHQWVUHIHUUHGWRDERYH,QSODQQLQJDQGSHUIRUPLQJRXUDXGLWRI FRPSOLDQFHZHFRQVLGHUHGWKH&LW\¶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¶VLQWHUQDOFRQWURORYHUFRPSOLDQFH $deficiency in internal control over complianceH[LVWVZKHQWKHGHVLJQRURSHUDWLRQRIDFRQWURORYHUFRPSOLDQFH GRHVQRWDOORZPDQDJHPHQWRUHPSOR\HHVLQWKHQRUPDOFRXUVHRISHUIRUPLQJWKHLUDVVLJQHGIXQFWLRQVWR SUHYHQWRUGHWHFWDQGFRUUHFWQRQFRPSOLDQFHZLWKDW\SHRIFRPSOLDQFHUHTXLUHPHQWRIDIHGHUDOSURJUDPRU VWDWHILQDQFLDODVVLVWDQFHSURMHFWRQDWLPHO\EDVLV$material weakness in internal control over complianceLVD GHILFLHQF\RUFRPELQDWLRQRIGHILFLHQFLHVLQLQWHUQDOFRQWURORYHUFRPSOLDQFHVXFKWKDWWKHUHLVDUHDVRQDEOH SRVVLELOLW\WKDWPDWHULDOQRQFRPSOLDQFHZLWKDW\SHRIFRPSOLDQFHUHTXLUHPHQWRIDIHGHUDOSURJUDPRUVWDWH ILQDQFLDODVVLVWDQFHSURMHFWZLOOQRWEHSUHYHQWHGRUGHWHFWHGDQGFRUUHFWHGRQDWLPHO\EDVLV$significant deficiency in internal control over compliance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ederal Grantor / Federal Pass-through Grantor / CFDA Share of Transfers to Program Title Number Grant I.D. Number Expenditures Subrecipients FEDERAL AWARDS U.S. Department of Housing and Urban Development: Community Development Block Grant - Entitlement 14.218 B-14-MC-12-0002 67,394$ 55,234$ 14.218 B-15-MC-12-0002 70,839 69,759 14.218 B-16-MC-12-0002 554,070 444,256 14.218 B-17-MC-12-0002 36,320 34,835 Neighborhood Stabilization Program 3 14.218 Program Income 6,194 14.218 734,817 604,084 Home Investment Partnerships Program 14.239 M-14-MC-12-0230 13,511 14.239 M-15-MC-12-0230 45,756 14.239 M-16-MC-12-0230 155,367 11,250 14.239 M-17-MC-12-0230 173,820 48,750 14.239 Program Income 542,402 536,856 14.239 930,856 596,856 Total U.S. Department of Housing and Urban Development 1,665,673 1,200,940 U.S. Department of the Interior: National Park Service Passed through Florida Dept of Environmental Protection Moccasin Lake Nature Park Project 15.916 DEP LW625 12-00625 7,148 Fish and Wildlife Service Clean Vessel Act Passed through Florida Dept of Environmental Protection 15.616 DEP Agreement MV192 CVA15-760 4,929 Clean Vessel Act Total U.S. Department of the Interior 12,077 - U.S. Department of Justice: Federal Forfeiture Sharing 16.000 FL0520300 117,638 Total U.S. Department of Justice 117,638 - U.S. Department of Transportation: Federal Highway Administration Passed through Florida Dept of Transportation: Federal-Aid Highway Program - HVE for Pedestrian & Bicycle Safety 2017 20.205 Contract #GOEO8 49,679 Passed through Florida Dept of Transportation: Recreation Trails Program 20.219 Project T15008 27,293 Total U.S. Department of Transportation 76,972 - U.S. Dept of Health & Human Services Centers for Disease and Control Passed Florida Department of Health 93.758 Contract #COHS2 54,378 Passed Florida Department of Health 93.758 Contract #COHS2 54,378 Total U.S. Dept of Health & Human Services 108,757 - U.S. Department of Homeland Securities Passed through the Florida Division of Emergency Management Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Hurricane Hermine 45,997 Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Hurricane Irma 37,871 Total U.S. Dept of Health & Human Services 83,868 - Total Federal Financial Assistance 2,064,985$ 1,200,940$ City of Clearwater, Florida Schedule of Expenditures of Federal Awardsand State Financial Assistance Projects For the Year Ended September 30, 2018 183 FY 2018 State Grantor / State Pass-through Grantor / CSFA Share of Transfers to Program Title Number Grant I.D. Number Expenditures (a) Subrecipients STATE FINANCIAL ASSISTANCE Florida Department of Environmental Protection: Florida Recreation Development Assistance Program 37.017 McMullen Tennis Courts 12,326 Florida Recreation Development Assistance Program 37.017 Countryside Sports Complex 58,096 Clearwater Sanitary Sewer Expansion Program 37.039 DEP Agreement LP52090 500,000 Total Florida Department of Environmental Protection 570,422 - Florida Department of Community Affairs: Florida Housing Finance Corporation State Housing Initiative Partnership Program (SHIP) 40.901 N/A 1,233,125 244,275 Total Florida Department of Community Affairs 1,233,125 244,275 Florida Department of Law Enforcement: Assistance with Investigative Operations 71.010 Electronic Surveillance Support Team & Cyber High Tech Task Force 38,077 Total Florida Department of Law Enforcement 38,077 - Florida Department of Transportation: Master Plan Update 55.004 FPN: 440471-1-94-01 Contract Number: GOH27 63,568 Ground Service Equipment 55.004 FPN: 432977-1-94-01 Contract Number: G0O77 43,648 Florida Highway Beautification Council Grant 55.003 FPID 438701-1-58-01 54,933 Total Florida Department of Transportation 162,149 - Florida Department of Revenue: Phillies Stadium 73.016 N/A 500,004 Total Florida Department of Revenue 500,004 - Total State Financial Assistance 2,503,777$ 244,275$ Total Expenditures of Federal Awards and State Financial Assistance Projects 4,568,762$ 1,445,215$ (a) Funded with State grants and aids appropriations. City of Clearwater, Florida Schedule of Expenditures of Federal Awards and State Financial Assistance Projects - Continued For the Year Ended September 30, 2018 184 185 City of Clearwater, Florida Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects For the Year Ended September 30, 2018 NOTE 1 – Basis of Presentation (a) Reporting Entity The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance Projects (“Schedule”) presents the activity of all federal financial and state grant activity projects of the City of Clearwater, Florida (the “City”). Federal and state financial assistance received directly from federal and state agencies, and federal financial assistance passed through other governmental agencies are included on the schedules. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550. (b) Disaster Grants – Public Assistance (Presidentially Declared Disaster) (97.036) After a Presidentially Declared Disaster, the Federal Emergency Management Agency (FEMA) provides a Public Assistance Grant to reimburse eligible costs associated with emergency response, debris removal, and eligible costs associated with repair, replacement, or restoration of disaster- damaged facilities. The Federal Government reimburses in the form of cost-shared grants. During fiscal 2018, FEMA approved approximately $83,868 of eligible expenditures that were incurred in a prior year and are included in the Schedule. NOTE 2 – Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance Projects is presented using the modified accrual or accrual basis of accounting, depending on the type of fund in which the grant is recorded, as described in Note I.C. to the City’s basic financial statements. NOTE 3 – CFDA/CSFA Numbers CFDA numbers represent Catalog of Federal Domestic Assistance and apply only to federal awards. CSFA numbers represent Catalog of State Financial Assistance and apply only to state financial assistance. NOTE 4 – Subrecipients Of the federal and state expenditures presented in the Schedule, the City provided federal and state awards to subrecipients as follows: Federal CFDA/ Amount Provided Program Title State CFSA To Subrecipients U.S. HUD Community Development Block Grant 14.218 $604,084 U.S. HUD Home Investment Partnerships Program 14.239 $596,856 Florida Housing Finance Corporation, State Housing Initiative Partnership Program 40.901 $244,275 186 City of Clearwater, Florida Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects For the Year Ended September 30, 2018 NOTE 5 – Loans Outstanding The current year additions related to the loans are included in the Schedule of Expenditures of Federal Awards and State Financial Assistance Projects. The City had the following loan balances outstanding, net of $12,285,788 allowance for uncollectable accounts, at September 30, 2018. 14.218 Community Development Block Grant $ 745,762 14.239 Home Investment Partnership Program 1,807,309 40.901 State Housing Initiative Partnership 2,151,176 $ 4,704,297 NOTE 6 – Indirect Cost Rate The City did not utilize the 10% de minimis indirect cost rates for reimbursement of grant expenditures for the fiscal year ended September 30, 2018. /dzK&>ZtdZ͕&>KZ/ ^,h>K&&/E/E'^EYh^d/KEK^d^ zZE^WdDZϯϬ͕ϮϬϭϴ WĂƌƚ/Ͷ^ƵŵŵĂƌǇŽĨĂƵĚŝƚŽƌ͛ƐƌĞƐƵůƚƐ &ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚ^ĞĐƚŝŽŶ 7\SHRIDXGLWRU VUHSRUWLVVXHG ,QWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJ 0DWHULDOZHDNQHVVHVLGHQWLILHG" [ \HV QR 6LJQLILFDQWGHILFLHQF\LHVLGHQWLILHGQRW FRQVLGHUHGWREHPDWHULDOZHDNQHVVHV" \HV [ QRQHUHSRUWHG 1RQFRPSOLDQFHPDWHULDOWRILQDQFLDO VWDWHPHQWVQRWHG \HV [ QR &ĞĚĞƌĂůǁĂƌĚƐWƌŽŐƌĂŵƐĂŶĚ^ƚĂƚĞWƌŽũĞĐƚƐ^ĞĐƚŝŽŶ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dzK&>ZtdZ͕&>KZ/ ^,h>K&&/E/E'^EYh^d/KEK^d^;KEd/EhͿ zZE^WdDZϯϬ͕ϮϬϭϴ WĂƌƚ/Ͷ^ƵŵŵĂƌǇŽĨĂƵĚŝƚŽƌ͛ƐƌĞƐƵůƚƐ;ĐŽŶƚŝŶƵĞĚͿ 'ROODUWKUHVKROGXVHGWRGHWHUPLQH 7\SH$SURJUDPV )HGHUDOSURJUDPV 6WDWHSURMHFWV $XGLWHHTXDOLILHGDVORZULVNDXGLWHH IRUIHGHUDOSXUSRVHV" \HV [ QR WĂƌƚ//Ͷ^ĐŚĞĚƵůĞŽĨĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚĨŝŶĚŝŶŐƐ 7KLVVHFWLRQLGHQWLILHVWKHVLJQLILFDQWGHILFLHQFLHVPDWHULDOZHDNQHVVHVDQGLQVWDQFHVRIQRQFRPSOLDQFHUHODWHG WRWKHILQDQFLDOVWDWHPHQWVWKDWDUHUHTXLUHGWREHUHSRUWHGLQDFFRUGDQFHZLWKGovernment Auditing Standards )LQGLQJ0DWHULDO:HDNQHVVLQ,QWHUQDO&RQWUROV2YHUWKH/RFDO+RXVLQJ$VVLVWDQFH/RDQV 5HFHLYDEOH &ULWHULD7KH&LW\RI&OHDUZDWHULVUHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJLQWHUQDOFRQWUROVRYHULWVILQDQFLDO FORVHDQGUHSRUWLQJSURFHVVWKDWDOORZVPDQDJHPHQWRUHPSOR\HHVLQWKHQRUPDOFRXUVHRISHUIRUPLQJWKHLU DVVLJQHGIXQFWLRQVWRSUHYHQWRUGHWHFWDQGFRUUHFWPLVVWDWHPHQWVRQDWLPHO\EDVLV &RQGLWLRQ'XULQJWKH\HDUHQGHG6HSWHPEHUWKHUHZHUHVLJQLILFDQWDGMXVWPHQWVQHHGHGWRFRUUHFW WKHORDQUHFHLYDEOHEDODQFHLQWKH6+,3/RFDO+RXVLQJ$VVLVWDQFH7UXVWDQGWKH6SHFLDO3URJUDPV)XQG &DXVH7KHPDQXDOVSUHDGVKHHWWKDWZDVPDLQWDLQHGE\WKH(FRQRPLF'HYHORSPHQWDQG+RXVLQJ'HSDUWPHQW ZDVQRWVXIILFLHQWO\UHYLHZHGRUUHFRQFLOHGWRWKHXQGHUO\LQJUHFRUGV (IIHFW7KH ORDQ UHFHLYDEOH EDODQFH RI ZDV HUURQHRXVO\ UHFRUGHG LQ WKH 6+,3 /RFDO +RXVLQJ $VVLVWDQFH7UXVWIXQGLQVWHDGRIWKH6SHFLDO3URJUDPV)XQG 5HFRPPHQGDWLRQ&LW\RI&OHDUZDWHUZRXOGEHQHILWIURPLPSURYLQJWKHUHFRQFLOLDWLRQDQGUHYLHZSURFHVVIRU PDQXDOO\ PDLQWDLQHG VSUHDGVKHHWV E\ DVVLJQLQJ VRPHRQH WKDW LV QRW LQYROYHG ZLWK SUHSDULQJ WKH PDQXDO VSUHDGVKHHWWRSHUIRUPDGHWDLOHGUHYLHZDQGGHILQHSURFHGXUHVLPSOHPHQWHGDIWHU\HDUHQGWRHQVXUHWKDWDOO QHZORDQVDQGORDQSD\PHQWVDUHLQFOXGHGLQWKHVSUHDGVKHHW,QFOXGLQJWKHXVHRIDSSURSULDWHFKHFNILJXUHVDV ZHOODVDQHPEHGGHGFKHFNOLVWRIUHYLHZSURFHGXUHVWRLGHQWLI\FRPPRQHUURUVZRXOGDOVREHEHQHILFLDO 0DQDJHPHQW¶V5HVSRQVH0DQDJHPHQWFRQFXUVZLWKWKLVUHFRPPHQGDWLRQ WĂƌƚ///Ͷ&ŝŶĚŝŶŐƐĂŶĚƋƵĞƐƚŝŽŶĞĚĐŽƐƚƐͲŵĂũŽƌĨĞĚĞƌĂůĂǁĂƌĚƉƌŽŐƌĂŵƐ 7KLV VHFWLRQ LGHQWLILHV WKH VLJQLILFDQW GHILFLHQFLHV PDWHULDOZHDNQHVVHV DQG PDWHULDO LQVWDQFHV RI QRQFRPSOLDQFHLQFOXGLQJTXHVWLRQHGFRVWVDVZHOODVDQ\PDWHULDODEXVHILQGLQJVUHODWHGWRWKHDXGLWRIPDMRU SURJUDPVDVUHTXLUHGWREHUHSRUWHGE\&)5D 7KHUHZHUHQRILQGLQJVUHTXLUHGWREHUHSRUWHGLQDFFRUGDQFHZLWK&)5D 188 /dzK&>ZtdZ͕&>KZ/ ^,h>K&&/E/E'^EYh^d/KEK^d^;KEd/EhͿ zZE^WdDZϯϬ͕ϮϬϭϴ WĂƌƚ/sͶ&ŝŶĚŝŶŐƐĂŶĚƋƵĞƐƚŝŽŶĞĚĐŽƐƚƐʹŵĂũŽƌƐƚĂƚĞĨŝŶĂŶĐŝĂůĂƐƐŝƐƚĂŶĐĞƉƌŽũĞĐƚƐ 7KLV VHFWLRQ LGHQWLILHV WKH VLJQLILFDQW GHILFLHQFLHV PDWHULDOZHDNQHVVHV DQG LQVWDQFHV RI QRQFRPSOLDQFH LQFOXGLQJ TXHVWLRQHG FRVWV UHODWHG WR WKH DXGLW RI PDMRU VWDWH SURMHFWV DV UHTXLUHG WR EH UHSRUWHG E\ &KDSWHU 7KHUHZHUHQRILQGLQJVUHTXLUHGWREHUHSRUWHGLQDFFRUGDQFHZLWK&KDSWHU 189 Corrective Action Plan for the City of Clearwater, Florida for Fiscal Year 2018 The Corrective Action Plan, indicating the parties responsible for implementation, are presented as follows: Finding 2018-001 Material Weakness in Internal Controls over the Local Housing Assistance Loans Receivable Corrective Action Plan: The Assistant Director of Economic Development and Housing will perform detailed reviews on a monthly basis and develop a process to ensure that new loans and loan payments are included in the spreadsheet corresponding to the appropriate general ledger account for each transaction, including the identification of check figures and development of a checklist of review procedures to be performed each month. These activities will begin May 1, 2019. 190 /ŶĚĞƉĞŶĚĞŶƚƵĚŝƚŽƌ͛ƐDĂŶĂŐĞŵĞŶƚ>ĞƚƚĞƌ 7RWKH+RQRUDEOH0D\RUDQG&LW\&RXQFLO0HPEHUV &LW\RI&OHDUZDWHU)ORULGD ZĞƉŽƌƚŽŶƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ :HKDYHDXGLWHGWKHILQDQFLDOVWDWHPHQWVRIWKH&LW\RI&OHDUZDWHU)ORULGDWKH&LW\DVRIDQGIRUWKH\HDU HQGHG6HSWHPEHUDQGKDYHLVVXHGRXUUHSRUWWKHUHRQGDWHG$SULO ƵĚŝƚŽƌ͛ƐZĞƐƉŽŶƐŝďŝůŝƚǇ :H FRQGXFWHG RXU DXGLW LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFDWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQGovernment Auditing StandardsLVVXHGE\ WKH&RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHVWKHDXGLWUHTXLUHPHQWVRI7LWOH86 Code of Federal Regulations 3DUW, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards ³8QLIRUP*XLGDQFH´DQG&KDSWHU5XOHVRIWKH$XGLWRU*HQHUDO KƚŚĞƌZĞƉŽƌƚŝŶŐZĞƋƵŝƌĞŵĞŶƚƐ :H KDYH LVVXHG RXU 5HSRUW RI ,QGHSHQGHQW $XGLWRU RQ ,QWHUQDO &RQWURO RYHU )LQDQFLDO 5HSRUWLQJ DQG RQ &RPSOLDQFH DQG 2WKHU 0DWWHUV %DVHG RQ DQ $XGLW RI )LQDQFLDO 6WDWHPHQWV 3HUIRUPHG LQ $FFRUGDQFH ZLWK Government Auditing Standards5HSRUW RI ,QGHSHQGHQW $XGLWRU RQ &RPSOLDQFH IRU (DFK 0DMRU )HGHUDO 3URJUDPDQG6WDWH$VVLVWDQFH3URMHFWDQGRQ,QWHUQDO&RQWURORYHU&RPSOLDQFH5HTXLUHGE\8QLIRUP*XLGDQFH DQG&KDSWHURules of the Auditor General of the State of Florida6FKHGXOHRI)LQGLQJVDQG4XHVWLRQHG &RVWV DQG 5HSRUW RI ,QGHSHQGHQW $FFRXQWDQW RQ &RPSOLDQFH ZLWK/RFDO *RYHUQPHQW ,QYHVWPHQW 3ROLFHV UHJDUGLQJFRPSOLDQFHLQDFFRUGDQFHZLWK&KDSWHU5XOHVRIWKH$XGLWRU*HQHUDO'LVFORVXUHLQWKRVH UHSRUWV DQG VFKHGXOH ZKLFK DUH GDWHG $SULO VKRXOG EH FRQVLGHUHG LQ FRQMXQFWLRQ ZLWK WKLV PDQDJHPHQWOHWWHU WƌŝŽƌƵĚŝƚ&ŝŶĚŝŶŐƐ 6HFWLRQ L 5XOHV RI WKH $XGLWRU *HQHUDO UHTXLUHVWKDW ZH GHWHUPLQH ZKHWKHU RU QRW FRUUHFWLYH DFWLRQVKDYHEHHQWDNHQWRDGGUHVVILQGLQJVDQGUHFRPPHQGDWLRQVPDGHLQWKHSUHFHGLQJDQQXDOILQDQFLDODXGLW UHSRUW1RUHFRPPHQGDWLRQVZHUHPDGHLQWKHSUHFHGLQJDQQXDOILQDQFLDODXGLWUHSRUW KĨĨŝĐŝĂůdŝƚůĞĂŶĚ>ĞŐĂůƵƚŚŽƌŝƚǇ 6HFWLRQL5XOHVRIWKH$XGLWRU*HQHUDOUHTXLUHVWKDWWKHQDPHRURIILFLDOWLWOHDQGOHJDODXWKRULW\IRU WKHSULPDU\JRYHUQPHQWDQGHDFKFRPSRQHQWXQLWRIWKHUHSRUWLQJHQWLW\EHGLVFORVHGLQWKLVPDQDJHPHQWOHWWHU XQOHVV GLVFORVHG LQ WKH QRWHV WR WKH ILQDQFLDO VWDWHPHQWV 6XFK GLVFORVXUH LV LQFOXGHG LQ WKH QRWHV WR WKH ILQDQFLDOVWDWHPHQWV &ŝŶĂŶĐŝĂůŽŶĚŝƚŝŽŶĂŶĚDĂŶĂŐĞŵĞŶƚ 6HFWLRQLDDQG5XOHVRIWKH$XGLWRU*HQHUDOUHTXLUHVWKDWZHUHSRUWWKHUHVXOWVRIRXU GHWHUPLQDWLRQ DV WR ZKHWKHU RU QRW WKH &LW\ KDV PHW RQH RU PRUH RI WKH FRQGLWLRQV GHVFULEHG LQ 6HFWLRQ )ORULGD6WDWXWHVDQGLGHQWLILFDWLRQRIWKHVSHFLILFFRQGLWLRQVPHW,QFRQQHFWLRQZLWKRXUDXGLWZH GHWHUPLQHGWKDWWKH&LW\GLGQRWPHHWDQ\RIWKHFRQGLWLRQVGHVFULEHGLQ6HFWLRQ)ORULGD6WDWXWHV 3XUVXDQWWR6HFWLRQVLFDQG5XOHVRIWKH$XGLWRU*HQHUDOZHDSSOLHGILQDQFLDOFRQGLWLRQ DVVHVVPHQWSURFHGXUHVIRUWKH&LW\,WLVPDQDJHPHQW¶VUHVSRQVLELOLW\WRPRQLWRUWKH&LW\¶VILQDQFLDOFRQGLWLRQ DQGRXUILQDQFLDOFRQGLWLRQDVVHVVPHQWZDVEDVHGLQSDUWRQUHSUHVHQWDWLRQVPDGHE\PDQDJHPHQWDQGWKH UHYLHZRIILQDQFLDOLQIRUPDWLRQSURYLGHGE\VDPH 191 6HFWLRQL5XOHVRIWKH$XGLWRU*HQHUDOUHTXLUHVWKDWZHDGGUHVVLQWKHPDQDJHPHQWOHWWHUDQ\ UHFRPPHQGDWLRQVWRLPSURYHILQDQFLDOPDQDJHPHQW,QFRQQHFWLRQZLWKRXUDXGLWZHGLGQRWKDYHDQ\VXFK UHFRPPHQGDWLRQV ĚĚŝƚŝŽŶĂůDĂƚƚĞƌƐ 6HFWLRQL5XOHVRIWKH$XGLWRU*HQHUDOUHTXLUHVWKDWZHDGGUHVVQRQFRPSOLDQFHZLWKSURYLVLRQVRI FRQWUDFWVRUJUDQWDJUHHPHQWVRUDEXVHWKDWKDYHRFFXUUHGRUDUHOLNHO\WRKDYHRFFXUUHGWKDWKDYHDQHIIHFW RQWKHILQDQFLDOVWDWHPHQWDPRXQWVWKDWLVOHVVWKDQPDWHULDOEXWZDUUDQWVWKHDWWHQWLRQRIWKRVHFKDUJHGZLWK JRYHUQDQFH,QFRQQHFWLRQZLWKRXUDXGLWZHGLGQRWQRWHDQ\VXFKILQGLQJV WƵƌƉŽƐĞŽĨƚŚŝƐ>ĞƚƚĞƌ 7KHSXUSRVHRIWKLVPDQDJHPHQWOHWWHULVWRFRPPXQLFDWHFHUWDLQPDWWHUVSUHVFULEHGE\&KDSWHU5XOHV RIWKH$XGLWRU*HQHUDO$FFRUGLQJO\WKLVPDQDJHPHQWOHWWHULVQRWVXLWDEOHIRUDQ\RWKHUSXUSRVH 7DPSD)ORULGD $SULO 192 ZĞƉŽƌƚŽĨ/ŶĚĞƉĞŶĚĞŶƚĐĐŽƵŶƚĂŶƚŽŶŽŵƉůŝĂŶĐĞ ǁŝƚŚ>ŽĐĂů'ŽǀĞƌŶŵĞŶƚ/ŶǀĞƐƚŵĞŶƚWŽůŝĐŝĞƐ 7RWKH+RQRUDEOH0D\RUDQG&LW\&RXQFLO0HPEHUV &LW\RI&OHDUZDWHU)ORULGD :H KDYH H[DPLQHG WKH &LW\ RI &OHDUZDWHU )ORULGD¶V WKH ³&LW\´ FRPSOLDQFH ZLWK WKH ORFDO JRYHUQPHQW LQYHVWPHQW SROLF\UHTXLUHPHQWV RI 6HFWLRQ )ORULGD 6WDWXWHV GXULQJ WKH \HDU HQGHG 6HSWHPEHU 0DQDJHPHQWLVUHVSRQVLEOHIRUWKH&LW\¶VFRPSOLDQFHZLWKWKHVSHFLILHGUHTXLUHPHQWV2XUUHVSRQVLELOLW\LV WRH[SUHVVDQRSLQLRQRQWKH&LW\¶VFRPSOLDQFHZLWKWKHVSHFLILHGUHTXLUHPHQWVEDVHGRQRXUH[DPLQDWLRQ 2XUH[DPLQDWLRQZDVFRQGXFWHGLQDFFRUGDQFHZLWKDWWHVWDWLRQVWDQGDUGVHVWDEOLVKHGE\WKH$PHULFDQ,QVWLWXWH RI&HUWLILHG3XEOLF$FFRXQWDQWV7KRVHVWDQGDUGVUHTXLUHWKDWZHSODQDQGSHUIRUPWKHH[DPLQDWLRQWRREWDLQ UHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKH&LW\FRPSOLHGLQDOOPDWHULDOUHVSHFWVZLWKWKHVSHFLILHGUHTXLUHPHQWV UHIHUHQFHGDERYH$QH[DPLQDWLRQLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQHYLGHQFHDERXWZKHWKHUWKH&LW\ FRPSOLHGZLWKWKHVSHFLILHGUHTXLUHPHQWV7KHQDWXUHWLPLQJDQGH[WHQWRIWKHSURFHGXUHVVHOHFWHGGHSHQGRQ RXUMXGJPHQWLQFOXGLQJDQDVVHVVPHQWRIWKHULVNVRIPDWHULDOQRQFRPSOLDQFHZKHWKHUGXHWRIUDXGRUHUURU :H EHOLHYH WKDW WKH HYLGHQFH REWDLQHG LV VXIILFLHQW DQG DSSURSULDWH WR SURYLGH D UHDVRQDEOH EDVLV IRU RXU RSLQLRQ 2XU H[DPLQDWLRQ GRHV QRW SURYLGH D OHJDO GHWHUPLQDWLRQ RQ WKH &LW\¶V FRPSOLDQFH ZLWK WKH VSHFLILHG UHTXLUHPHQWV ,Q RXU RSLQLRQ WKH &LW\ FRPSOLHG LQ DOO PDWHULDO UHVSHFWV ZLWK WKH ORFDO LQYHVWPHQW SROLF\ UHTXLUHPHQWV RI 6HFWLRQ)ORULGD6WDWXWHVGXULQJWKH\HDUHQGHG6HSWHPEHU 7KHSXUSRVHRIWKLVUHSRUWLVWRFRPSO\ZLWKWKHDXGLWUHTXLUHPHQWVRI6HFWLRQ)ORULGD6WDWXWHVDQG 5XOHVRIWKH$XGLWRU*HQHUDO 7DPSD)ORULGD $SULO 193 194 This Page Intentionally Left Blank City of Clearwater, FloridaAudit Summary and Required Communications The Honorable Mayor, Members of City Council and Audit CommitteeCity of Clearwater, FloridaDear Honorable Mayor and Council Members:We have audited the accompanying financial statements of the governmental activities,the business-type activities, each major fund, and the aggregate remaining fundinformation of the City of Clearwater, Florida (the “City”) as of and for the year endedSeptember 30, 2018, and the related notes to the financial statements, which collectivelycomprise the City’s basic financial statements. We also have audited the respectivebudgetary comparisons for the general fund and the special financial statements of eachof the City’s nonmajor governmental funds, nonmajor enterprise funds, internal serviceand fiduciary funds presented as supplementary information, as defined bytheGovernmental Accounting Standards Board, in the accompanying combiningandindividual fund statements as of and for the year ended September 30, 2018,and haveissued our report thereon dated April 19, 2019.As required by auditing standards generally accepted in the United Statesof America,Government Auditing Standards,the Uniform Guidance and Chapter 10.550,Rules of theAuditor Generalwe are providing you with the information shown in this presentationrelative to the conduct of our audit. Such information is intended for the use of themanagement, the Audit Committee and City Council of the City, and is not intended foranyone other than these specified parties.CHERRY BEKAERT LLP2 Audit opinion – (page 1) UnmodifiedReport on Internal Control over Financial Reporting and on Compliance– (page 179) (one material weakness)Report on Compliance for each Major Program and on Internal Control over Compliance – (page 181) UnmodifiedManagement Letter – (page 191) (No Comment)Report on Compliance with Local Government Investment Policies– (page 193) UnmodifiedSchedule of Findings and Questioned Costs– (page 187)Other reports not included in CAFR:Report on Schedule of Revenues and Expenditures Related to Emergency Medical ServicesSummary of Deliverables3 Significant Accounting PoliciesDescribed in Note 1 to the financial statementsIn accordance with accounting principles generally accepted in the United States ofAmericaConsistent with industry practices and standards.Adoption of, or change in, accounting policies during fiscal year 2018GASB No. 75 –Postemployment Benefits Other Than Pensions(See Note I.E)Significant accounting policy changes will be implemented in the upcoming fiscalyearsGASB No. 87 –LeasesSignificant or Unusual Transactions or PresentationsChange in Estimate Effected by a Change in Accounting PrincipleNotes III.C. (p.78) and IV.J (p.104)AUDITOR’S REQUIRED COMMUNICATION (AU 380) 4 Presented by:John J. GilbertoCarlos B. LopezCherry Bekaert LLP401 E. Jackson Street, Suite 1200Tampa, Florida 33602Email:jgilberto@cbh.comclopez@cbh.comPhone: 813-251-1010Fax: 813-251-9235CONTACT INFORMATION5 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6158 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Gas System Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Approve an increase to Purchase Order No. 18001102 with Ultimate CNG, LLC in the amount of $275,600, for the period June 1, 2019 through August 30, 2019, to provide mobile compressed natural gas services at the Clearwater natural gas filling station, approve Agreement No. 9, UCNG Daily Temporary Mobile CNG Fueling Service for Clearwater Gas in Clearwater, FL and authorize the appropriate officials to execute same. (consent) SUMMARY: Staff is requesting that Council extend the services provided by Ultimate CNG, LLC for a 13-week period starting June 1, 2019 through August 30, 2019, under Service Agreement #9. Ultimate CNG is currently providing temporary Compressed Natural Gas (CNG) refueling services, via a mobile CNG storage truck, at the filling station located at 1020 North Hercules Avenue. Ultimate CNG has been providing this service since July 2018. The reason for their extended service is due to failed attempts to repair the primary CNG compressor unit. The initial failure occurred in July 2018, when parts on the compressor were damaged due to a mechanical failure. Replacement parts were ordered from the manufacturer, Gardner Denver, who are in England, UK. Unfortunately, when these parts arrived in August 2018, they did not fix the problem, as oil was bypassing the cylinder heads and discharging into the receiving tank causing the compressor to run low on oil. If left unattended, the compressor would run out of oil and seize up causing massive damage to the entire unit. Subsequently, a second set of parts were ordered and arrived in October 2018. Unfortunately, the same problem was occurring after these parts were installed. The maintenance contractor, Trillium, instructed us order a third set of parts in order to re-build the entire compressor head. This order would replace all moving parts in the compressor assembly. Due to the long list of parts, it took almost three months to arrive (from England) due to slow production from Gardner Denver. The rebuild was performed on March 15, 2019. Unfortunately, after the third repair, the same problem was occurring with the oil bypassing the cylinder heads and discharging into the receiving tank. Currently, the unit has been running in test mode to determine if oil consumption will decrease over time. In addition, CGS is working with Trillium to remove the replacement parts and inspect for any damage to determine the root cause of the oil consumption. While this troubleshooting is going on, it’s prudent to continue the services of Ultimate CNG until this issue is resolved and we have two reliable compressors operating at the fueling station. The long-term plan to resolve issues at the station is to purchase a third mobile CNG compressor, which is currently on order and scheduled to arrive in August 2019. CGS has Page 1 City of Clearwater Printed on 5/10/2019 File Number: ID#19-6158 also hired Long & Associates to perform a comprehensive audit of the CNG station. They will provide CGS with a list of recommend changes to improve the overall station operation for the next 10 years. This purchase order was originally approved by the City Manager in August 2018, in the amount of $99,715 and a 2nd Agreement, in the amount of $197,600. A third increase was approved by City Council on October 18, 2018, in the amount of $74,100. Agreement # 4 and # 5 were approved on January 17, 2019 in the amount of $324,800. Agreement #6 & #7 were approved on February 21, 2019 and March 21, 2019, respectively, in the amount of $84,800 each. Agreement # 8 was approved on April 18, 2019 in the amount of $106,000. If approved, this increase will set the total amount of the Purchase Order to $1,247,415. APPROPRIATION CODE AND AMOUNT: Funds are budgeted and available in 4232078-531300. USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 5/10/2019 ULTIMATE CNG, LLC 3185 Wheatland Farms Drive Oakton, Virginia, 22124 [A04-02064 /224182/1] Agreement #9 UCNG Daily Temporary Mobile CNG Fueling Service for Clearwater Gas in Clearwater, FL Service provided by Ultimate CNG LLC (UCNG) to Clearwater Gas: Deliveries at the Fueling Site of compressed natural gas (CNG) by UCNG employees eleven (11) hours per day, five (5) days per week, from 6:30 a.m. until 5:00 p.m. Monday through Friday (herein after, the Work Day). UCNG shall deploy the UCNG FuelMule™each Work Day for use during this Engagement to augment the use of the Clearwater Gas on-site ANGI compressor. The UCNG FuelMule™compressor shall be utilized for as many as eight hours each Work Day during the Term of this Engagement. Additionally, UCNG shall provide a Gas Transport Module for use at the Site during the Engagement Period which will commence on Saturday, June 1, 2019 and continue through Friday, August 30, 2019. Fueling Site:The Clearwater Gas Fueling Site located at 1020 Hercules Avenue, Clearwater Florida. Clearwater Gas shall provide no-cost access to the Fueling Site for UCNG to fulfill its obligations under this Agreement, including parking for UCNG equipment throughout the term of this Agreement. Source of CNG:UCNG is dependent upon Clearwater Gas as a natural gas source at the Fueling Site referred to above. This Site is the exclusive source of natural gas required for use in the UCNG FuelMule™under this Agreement. UCNG shall acquire natural gas from this site and Clearwater Gas acknowledges that UCNG shall have no obligation to deliver more CNG than it is able to obtain, using commercially reasonable efforts, and no damages shall accrue because of such inability. UCNG’s Mobile CNG Fueling Service during the Temporary Mobile CNG Fueling Period:The Temporary Mobile CNG Fueling Period (herein after; the Engagement Period) for this Project will be for a 13-week period. The UCNG Service Offering in this Purchase Order Proposal is expected to commence on Saturday, June 1, 2019 and continue through Friday, August 30, 2019. The anticipated cost is approximately $275,600. The mobile CNG fueling services provided to Clearwater Gas by UCNG during this Engagement Period shall consist of three cost components. The first cost component is the dedicated use of the UCNG FuelMule™and a qualified UCNG employee FuelMule™Operator during all Work Days throughout the Engagement Period. Compression from the FuelMule™ will be available throughout each day and shall be used in compression mode for up to eight hours of compression time during each Work Day. The second cost component is the use of a primary UCNG Gas Transport Module (GTM) on- site to assist with CNG fueling of the City of Clearwater Trucks and other large commercial vehicles that come to the Station. A second GTM will also be made available to Clearwater Gas and if so needed can also be utilized on-site during the Engagement Period as well. a) The first cost component is a FuelMule™ Operation and Usage Fee of $18,500 per Week. The Weekly FuelMule™Operation and Usage Fee includes: ULTIMATE CNG, LLC 3185 Wheatland Farms Drive Oakton, Virginia, 22124 [A04-02064 /224182/1] Dedicated use of the UCNG FuelMule™as well as an UCNG employee FuelMule™ Operator each Work Day from 6:30 a.m. until 5:00 p.m. The FuelMule™will be available for gas compression for up to eight hours per Work Day. All compression hours required beyond eight hours per Work Day shall be Invoiced at $295.00 per hour. b) The second cost component is a GTM Usage Fee of $700 per Week. The Weekly GTM Usage Fee includes: Dedicated use of a UCNG GTM. This Fee does not include the salary and benefits for a weekly UCNG employee Fueling Technician/GTM Operator each Work Day from 6:30 a.m. until 5:00 p.m. The GTM will be available for dispensing high pressure natural gas throughout each Work Day. An additional GTM can be made available for another fee of $2,100 per week. c) The third cost component is for a UCNG GTM Operator/Fueling Technician of $2,000 per Week. Dedicated use of a UCNG employee Fueling Technician/GTM Operator from 6:30 a.m. until 5:00 p.m. The GTM employee will be available for dispensing high pressure natural gas into awaiting City of Clearwater Trucks and other large commercial vehicles. This cost component will only be utilized during routine maintenance of the FuelMule™unit or any other unforeseen events that require additional staffing at the Clearwater fueling site. The $21,200.00 Weekly Fueling Service Fee included as the first, second and third components listed above will cover ALL costs associated with UCNG’s mobile CNG fueling service including: Daily use of multiple pieces of UCNG Equipment, including the UCNG FuelMule™and UCNG GTM. Capital depreciation, maintenance and wear and tear on all components of UCNG equipment required to deliver natural gas to City of Clearwater Trucks and other large commercial vehicles at the Fueling Site. Salary and Benefits, daily transportation, overnight accommodations, per diem expenses, etc. for two UCNG employees (FuelMule™Operator and GTM Operator/ Fueling Technician) required to dispense CNG fuel into the City of Clearwater Trucks and other large commercial vehicles each Work Day. Insurance and all other associated UCNG mobile fueling costs. Motor Fuels/Excise Tax:Any taxes associated with the acquisition, dispensing and consumption of CNG pursuant to this agreement (sales, use and/or motor fuels taxes, excise tax, etc., excluding income tax) shall be the responsibility of Clearwater Gas. ULTIMATE CNG, LLC 3185 Wheatland Farms Drive Oakton, Virginia, 22124 [A04-02064 /224182/1] Term of the Agreement:The term of this Agreement (“Agreement #9”) shall commence on Saturday, June 1, 2019 and continue through Friday, August 30, 2019, or longer as necessary and as agreed to by both parties. Clearwater Gas may terminate by providing forty-eight (48)-hours written notice to UCNG. Payment Terms:Invoices will be prepared on a weekly basis. Payment terms are net 30 days from the date of the Invoice. Standard Terms that are attached hereto are incorporated as an integral part of this Agreement. Agreed and accepted this ________ day of May, 2019. Agreement for UCNG Daily Temporary Mobile CNG Fueling Service for Clearwater Gas in Clearwater, FL (Agreement #9) ULTIMATE CNG, LLC By:________________________________ Brian P. Fimian Chief Operations Officer Countersigned: CITY OF CLEARWATER, FLORIDA ___________________________By:__________________________ George N. Cretekos William B. Horne II Mayor City Manager Approved as to form: Attest: ___________________________________________________________ Laura Mahony Rosemarie Call Assistant City Attorney City Clerk ULTIMATE CNG, LLC 3185 Wheatland Farms Drive Oakton, Virginia, 22124 [A04-02064 /224182/1] Standard Terms: Minimum Term; Take or Pay.The parties agree that Client shall pay the fees set forth for: (i) a minimum Term of 23 days, whether or not Client makes use of any of the fueling services and whether or not it takes delivery of any CNG and (ii) each Weekly Service Fee the during the Term and the UCNG Equipment Mobilization charge, whether or not Client makes use of the fueling services during such delivery period and whether or not it takes delivery of any CNG. In the event fees are payable by Client even though it does not make use of fueling services, the amounts payable are intended to be an estimate of the amount that would be necessary to compensate UCNG for standing ready to provide the services and for the actual damages (including without limitation loss of bargain) it would suffer if this Agreement or the Term were terminated earlier than the end of the minimum Term. The parties acknowledge and agree that the amount set forth above is a reasonable estimate of such actual damages. Fueling Site.Client grants to UCNG, at no cost, a non-exclusive license to access and use the fueling site during the Term (i) to supply UCNG’s equipment at the fueling site with natural gas, (ii) to use the fueling site as contemplated hereby and in compliance with all applicable environmental, safety, land use, zoning and other laws and regulations and (iii) to store UCNG’s GTMs and related delivery equipment, and personal vehicles of UCNG’s personnel at the fueling site. Such license shall be irrevocable during the Term. Such license is not gratuitous, but is given in exchange for the UCNG’s undertakings in this Agreement. Client shall allow UCNG to limit access to UCNG’s equipment and the immediate area surrounding it as reasonably required to ensure the safe and efficient operation of the UCNG’s equipment. Additional Payment Terms.Each invoice shall be deemed accurate in the absence of manifest error. Any amount payable by Client under this Agreement and not paid when due shall bear interest, payable on demand, until such past-due amount is paid in full at the rate of 12% per annum, provided that such rate of interest shall not exceed the maximum rate permitted by applicable law. Taxes.If any Sales Tax or Excise Tax is applicable to the transactions contemplated hereby, then Client shall (i) pay to UCNG all Sales Taxes and Excise Taxes payable by Client and collectible by UCNG as a result of the services and payments hereunder, (ii) pay directly to the relevant taxing authority when due all Sales Taxes and Excise Taxes payable by it directly to a taxing authority as a result of the services and payments hereunder and (iii) pay or reimburse UCNG promptly on demand for all Sales Taxes and Excise Taxes payable by UCNG as a result of the services and payments hereunder. Such payments shall be in addition to, and without deduction from or otherwise reducing, the compensation payable hereunder. “Sales Tax” means any U.S. or foreign federal, state or local sales, use, value added, transfer or similar tax, assessment or fee which is payable on the purchase and sale of goods generally (with limited exceptions), but not including any Income Tax. “Excise Tax” means any U.S. or foreign federal, state or local tax, assessment or fee which is payable as a result of the purchase, sale, transportation, supply or use of CNG or uncompressed natural gas or the other transactions contemplated hereby, but not including any Sales Tax or Income Tax. “Income Tax” means any U.S. or foreign federal, state or local tax levied upon UCNG’s or Client’s net income, or levied upon its gross receipts in lieu of a net income tax. ULTIMATE CNG, LLC 3185 Wheatland Farms Drive Oakton, Virginia, 22124 [A04-02064 /224182/1] No Other Use.Client shall not, in any event, resell any compressed natural gas handled by UCNG or use it for any purpose other than as transportation fuel for the vehicle into which it is delivered by UCNG pursuant to this Agreement. Service Provider Only; Force Majeure.UCNG shall not be responsible for delays, failures or omissions arising out of causes beyond its control and not occasioned by UCNG’s fault or negligence, including without limitation: acts of God, war, armed hostilities, riots, fires, floods, storms, freezing weather, earthquakes, serious accidents, expropriation, condemnation or confiscation of property, governmental acts or failure to act (whether or not under legal authority), interruption of natural gas supplies, change in specifications of natural gas purchased by it, strikes or labor troubles or failure or delay in transportation. Delays arising from the foregoing causes may be longer than the period of time such cause (such as a strike, governmental shutdown or riots) existed. The parties agree that a delay arising out of the causes referred to above will be material or indefinite only if it exceeds one year. Warranties; Limitations. Client represents and warrants to UCNG that it has selected (and will select) all the vehicles that it seeks to have UCNG refuel without any involvement on the part of UCNG, and that Client has determined that the design, function, performance and specifications of such vehicles, their engines and their fuel storage and delivery systems are suitable for Client’s purposes and consistent with CNG that meets the standards and specifications set forth in this Agreement. The parties agree that, in determining the foreseeability of any loss or damage arising out of any breach of this Agreement, each will be charged only with such knowledge of the other’s business, requirements and intended use of vehicles as has been formally disclosed to the other party in writing before making this Agreement. Amendment; No Waivers.Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by each party hereto or, in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. Integration.This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, both written and oral, among any of the parties with respect to the subject matter of this Agreement. Governing Law; Jurisdiction.This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. If a dispute between or among the parties relating to this Agreement becomes the subject of litigation, the prevailing party in such dispute (as determined by the court) shall be entitled to recover reasonable attorneys’ fees, costs and expenses incurred in connection therewith from the other party. HOLD HARMLESS/INDEMNIFICATION:UCNG shall defend, indemnify, save and hold the City harmless from any and all claims, suits, judgements and liability for death, personal injury, bodily injury, or property damage arising directly from its negligent performance under the Agreement, or a ULTIMATE CNG, LLC 3185 Wheatland Farms Drive Oakton, Virginia, 22124 [A04-02064 /224182/1] subsequent purchase order entered into by City and UCNG, its employees, subcontractors, or assigns, including legal fees, court costs, or other legal expenses. UCNG acknowledges that it is solely responsible for complying with the terms of the Agreement or a purchase order arising out of the agreement. Counterparts.This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-5997 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Parks & Recreation Agenda Number: 5.1 SUBJECT/RECOMMENDATION: Approve contract for Women’s Softball Promotional Services to Michele Smith, Inc. of St. Petersburg, Florida, in the annual amount of $60,000 and two one-year renewal terms, in accordance with Code of Ordinances Section 2.564 Exceptions to Bid and authorize the appropriate officials to execute same. (consent) SUMMARY: On March 17, 2016, the City Council approved a contract with Michele Smith, Inc. to provide promotional services to promote women’s fast-pitch softball tournaments and programs in Clearwater and also act as a representative of the Parks and Recreation Department in promoting Clearwater as a premier sports town with emphasis on fast-pitch softball facilities and amenities. Michele Smith was selected as a result of Request for Proposals #10-16 and was the only respondent to the RFP. Due to the overwhelming success of this contract, staff is recommending approval of a new contract with Michele Smith. The responsibilities and objectives of the contract will remain the same as in past years which are as follows: 1)To put the City in the best position to be recognized as a premier softball sports venue. 2)To promote the City’s brand throughout the United States, as well as internationally. 3)Establish and maintain a strong and healthy relationship with local, national, and international fast-pitch sports organizations. 4)Provide quality entertainment for spectators and quality competition for teams visiting Clearwater by attracting new tournaments and retaining established tournaments. 5)Increase the exposure of softball and sports tourism in Clearwater through new programs, tournaments, and relationships. A portion of her accomplishments over the past three years include the following: ·Teams she has brought to Clearwater for Tournaments - (38) including Auburn, DePaul, Fordham, James Madison, Oklahoma State, USF, Tennessee, Binghamton, Hofstra, St. Joseph’s University, Wisconsin, Florida Atlantic, Marshall, UMass-Lowell, Missouri, Oakland, California, FSU, JMU, Kentucky, LSU, Minnesota, Notre Dame, Oklahoma, OSU, Oregon, Texas, Utah. ·Sponsored 3 major tournaments in her name. ·Economic Impact - approximately $4 million. ·Spectators attending games - 13,837. Page 1 City of Clearwater Printed on 5/10/2019 File Number: ID#19-5997 ·Volunteer hours and appearances - Board Member for Clearwater For Youth and sponsors a $5,000 college scholarship to a female student in our community. ·Promotion of Clearwater - Throughout the spring, you will hear Michele Smith on ESPN’s Family of networks promoting Clearwater as a premier softball destination and a great place to live, work, and play. ·St. Pete Clearwater Elite Invitational Tournament - Over $160,000 in revenue was generated just from ticket sales and will net between $40,000 and $50,000. ESPN broadcasted 14 digital games, with an average 30,000 views per game, and 11 Linear Games that averaged 90,000 views per game with the Top Performing Game of Tennessee vs. FSU which had 328,921 viewers. We had 15 of the 16 teams stay in Pinellas County and 5 teams stayed in Clearwater, which helped jump start our 2019 Spring Break. ·Other Benefits - With Michele’s assistance, we hosted the 2017 USA Gold and 18U National Championships, 2017 WBSC Jr. World Championships, and the USA Softball National Team tryouts for the last 3 years. She is also working with us to get the WBSC to move their international office to Clearwater. This is an attractive place for the WBSC not only because of what the City has to offer, but also due to our relationship with Michele Smith. Her knowledge of the game and the respect she has overseas is a great combination and selling point to WBSC. Staff is of the opinion that Ms. Smith’s qualifications and services are unique and non-competitive; therefore, the recommendation is to award the contract without solicitation in accordance with Code of Ordinances Section 2.564(e) Exceptions to Bid, non-competitive selection. APPROPRIATION CODE AND AMOUNT: Funding for this contract will come from the Sports Tourism code 0101836. USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6157 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Parks & Recreation Agenda Number: 5.2 SUBJECT/RECOMMENDATION: Approve a proposal by Construction Manager at Risk DeLotto and Sons, Inc. of Tampa, Florida in the amount of $2,168,713 for construction of a multipurpose building at Countryside Sports Complex located at 3060 McMullen Booth Road and authorize the appropriate officials to execute same. (consent) SUMMARY: On October 18, 2018, Council approved a proposal by Construction Manager at Risk Keystone Excavators, Inc. in the amount of $421,014 for site improvements needed at Countryside Sports Complex in advance of the construction of a multipurpose building. All site improvements are completed and construction of the building can now begin. On December 31, 2018, Request for Qualifications #16-19 was issued to secure Construction Management at Risk (CMAR) services for the construction of a multipurpose building to serve the Countryside Sports Complex (CSC). The evaluation committee recommended DeLotto & Sons Inc. for this project. Council established a CIP project in Fiscal Year 2016/17 for $800,000 to construct a replacement restroom, concession, and storage building at CSC. Since additional funding was needed to accomplish the complete renovations, the City applied for and was awarded a TDC grant for $1.9 million, as well as obtaining donations from city Co-Sponsor Sports groups including the Countryside Cougars, Clearwater Soccer, Clearwater Lacrosse, as well as the City of Safety Harbor commitment of $350,000, and Florida Recreation Development Assistance Program (FRDAP) grant of $100,000. On August 16, 2017, the City Council awarded a contract to Wannemacher Jenson Architects, Inc. (WJA) in the amount of $152,000 for architectural and engineering services for the design of a new building to house restrooms, concessions, a press box, storage, meeting rooms, and lockers at the Countryside Sports Complex. This Contract consists of constructing a 5,714-sf building as designed by WJA and will consolidate all services now being offered on site to one building. Once the building is constructed and opened to the public, the existing structures on the north field will be removed and the field expanded to provide more playing area for participants. This is a 240-day contract and will be completed by January 2020. The Sports Complex will be operational during the entire construction process. APPROPRIATION CODE AND AMOUNT: Funds are available for this project in Capital Improvement Project 315-93652 “Countryside Sports Complex Renovations.” Page 1 City of Clearwater Printed on 5/10/2019 File Number: ID#19-6157 USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 5/10/2019 August 19, 2016 J. O. Delotto & Sons, Inc. Attention: Craig Lambergson 924 E. Busch Blvd. Tampa, FL 33612 RE: 2016 – 2020 Construction Management at Risk Services for Continuing Contracts Dear Mr. Lambergson: J.O. Delotto & Sons, Inc., has been awarded the 2016 – 2020 Construction Management at Risk Services for Continuing Contracts by the City of Clearwater Engineering Dept. and City Council. Enclosed are the contract documents for your files. Per the Request for Qualifications RFQ # 24-16, the following insurance documents are required. Please submit the insurance documents references below no later than Friday, Sept, 2, 2016 to: City of Clearwater Attn: Engineering Contract Specialist, RFQ #24-16 P.O. Box 4748 Clearwater, FL 33758-4748 Or via email to Lisa.Bayly@myclearwater.com INSURANCE REQUIREMENTS. The Contractor (respondent) shall, at its own cost and expense, acquire and maintain (and cause any subcontractors, representatives or agents to acquire and maintain) during the term with the City, sufficient insurance to adequately protect the respective interest of the parties. Coverage shall be obtained with a carrier having an AM Best Rating of A-VII or better. In addition, the City has the right to review the Contractor’s deductible or self-insured retention and to require that it be reduced or eliminated. Specifically the Contractor must carry the following minimum types and amounts of insurance on an occurrence basis or in the case of coverage that cannot be obtained on an occurrence basis, then coverage can be obtained on a claims-made basis with a minimum three (3) year tail following the termination or expiration of this Agreement. Specific work may require additional coverage on a case by case basis: a.Commercial General Liability Insurance coverage, including but not limited to, premises operations,products/completed operations, products liability, contractual liability, advertising injury, personal injury, death, and property damage in the minimum amount of $1,000,000 (one million dollars) per occurrence and $2,000,000 (two million dollars) general aggregate. b.Commercial Automobile Liability Insurance coverage for any owned, non-owned, hired or borrowedautomobile is required in the minimum amount of $1,000,000 (one million dollars) combined single limit. INSR ADDLSUBRLTRINSRWVD DATE (MM/DD/YYYY) PRODUCER CONTACTNAME: FAXPHONE(A/C, No):(A/C, No, Ext): E-MAILADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS(MM/DD/YYYY)(MM/DD/YYYY) GENERAL LIABILITY AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATION AND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) AUTHORIZED REPRESENTATIVE INSURER(S) AFFORDING COVERAGE NAIC # Y / N N / A (Mandatory in NH) ANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED? EACH OCCURRENCE $ DAMAGE TO RENTEDCOMMERCIAL GENERAL LIABILITY $PREMISES (Ea occurrence) CLAIMS-MADE OCCUR MED EXP (Any one person)$ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ GEN'L AGGREGATE LIMIT APPLIES PER:PRODUCTS - COMP/OP AGG $ $PRO-POLICY LOCJECT COMBINED SINGLE LIMIT $(Ea accident) BODILY INJURY (Per person)$ANY AUTO ALL OWNED SCHEDULED BODILY INJURY (Per accident)$AUTOS AUTOS HIRED AUTOS NON-OWNED PROPERTY DAMAGE $AUTOS (Per accident) $ OCCUR EACH OCCURRENCE $ CLAIMS-MADE AGGREGATE $ DED RETENTION $$ WC STATU-OTH- TORY LIMITS ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.L. DISEASE - POLICY LIMIT $DESCRIPTION OF OPERATIONS below SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION © 1988-2010 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORDACORD 25 (2010/05) ACORDTM CERTIFICATE OF LIABILITY INSURANCE 8/26/2016 Bouchard Insurance (CLW) 101 N Starcrest Dr. Clearwater, FL 33765 727 447-6481 727 447-6481 727 449-1267 J O DeLotto & Sons, Inc. 924 E Busch Blvd Tampa, FL 33612-8542 Amerisure Insurance Company Amerisure Mutual Insurance Comp 19488 23396 A X X X Y Y CPP20186771201 04/01/2016 04/01/2017 1,000,000 1,000,000 10,000 1,000,000 2,000,000 2,000,000 A X X X Y Y CA20186761201 04/01/2016 04/01/2017 1,000,000 B X X X 0 Y CU20186791202 04/01/2016 04/01/2017 10,000,000 10,000,000 A N Y WC201868012 04/01/2016 04/01/2017 X 500,000 500,000 500,000 PROJECT: CONSTRUCTION MANAGEMENT AT RISK SERVICES FOR CONTINUING CONTRACTS BY THE CITY OF CLEARWATER ENGINEERING DEPT. AND CITY COUNCIL (See Attached Descriptions) City of Clearwater 100 South Myrtle Avenue Clearwater, FL 33756 1 of 2 #S501449/M411631 JODELOTTClient#: 4683 KELHO SAGITTA 25.3 (2010/05) DESCRIPTIONS (Continued from Page 1) NOTICE: Bouchard Insurance is required to comply with the licensing agreement we hold with ACORD. ACORD, in conjunction with the Department of Insurance, creates and enforces the rules and regulations pertaining to proper use of the Certificate of Liability Insurance form. We are required to mark a Y next to the line of business in which the Additional Insured or Waiver of Subrogation coverage applies. According to ACORD, the Description of Operations section must be limited to describing information necessary to identify the operations, locations and vehicles for which the certificate was issued. Please note the Description of Operations section of the Certificate cannot be used to add additional information except as just described. Marking a Y next to the line of business adequately documents coverage. Equally important, it satisfies the rules and regulations governing the proper use of the Certificate of Liability Insurance form. Certificate is a reflection of the current coverages provided for the insured. Limits and coverages are afforded to the certificate holder only if required by written contract. Coverage is primary as respects to General Liability and non-contributory as subject to the terms, conditions and exclusions of your policy. It is agreed by endorsement to the General Liability and Auto policy that this policy shall not be cancelled by the insurance carrier without first giving thirty (30) days prior written notice except for nonpayment of premium or if the first named insured elects to non renew. 2 of 2 #S501449/M411631 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: 9278-19 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: OrdinanceIn Control: Police Department Agenda Number: 6.1 SUBJECT/RECOMMENDATION: Amend the Clearwater Code of Ordinances Section 2.480.2, Miscellaneous Provisions, adding subsection (g), Missing Benefit Recipients relating to the Clearwater Police Officers’ Supplementary Pension and Retirement Plan and pass Ordinance 9278-19 on first reading. SUMMARY: With changes to the Internal Revenue Code (IRC) and its associated Regulations, as well as guidance from the Internal Revenue Service (IRS) and recent litigation, the Miscellaneous Provisions Section is being amended to add subsection (g), Missing Benefit Recipients. This provision is in accordance with a recent IRS Programs Compliance Memorandum that requires plans to have an approved method of locating terminated individuals who are due benefits from the plan. Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ANX2019-03010 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Planning CaseIn Control: Planning & Development Agenda Number: 7.1 SUBJECT/RECOMMENDATION: Approve the annexation, initial Future Land Use Map designation of Residential Low (RL) and initial Zoning Atlas designation of Low Medium Density Residential (LMDR) District for 1204 Norwood Avenue and pass Ordinances 9271-19, 9272-19, and 9273-19 on first reading. (ANX2019-03010) SUMMARY: This voluntary annexation petition involves a 0.270-acre property consisting of one parcel of land occupied by a single family home. The parcel is located on the west side of Norwood Avenue approximately 400 feet north of Lakeview Road. The applicant is requesting annexation in order to receive sanitary sewer and solid waste service from the City. The property is contiguous to existing city limits to the west. It is proposed that the property be assigned a Future Land Use Map designation of Residential Low (RL) and a Zoning Atlas designation of Low Medium Density Residential (LMDR). The Planning and Development Department determined that the proposed annexation is consistent with the provisions of Clearwater Community Development Code Section 4-604.E as follows: ·The property currently receives water service from the City. The closest sanitary sewer line is located to the northwest of the property in the Illinois Road right-of-way. The applicant has paid the City’s sewer impact and assessment fees and is aware of the additional costs to extend City sewer service to this property. The property is located within Police District II and service will be administered through the district headquarters located at 645 Pierce Street. Fire and emergency medical services will be provided to this property by Station #51 located at 1140 Court Street. The City has adequate capacity to serve this property with sanitary sewer, solid waste, police, fire and EMS service. The proposed annexation will not have an adverse effect on public facilities and their levels of service; and ·The proposed annexation is consistent with and promotes the following objectives and policy of the Clearwater Comprehensive Plan: Objective A.6.4 Due to the built-out character of the City of Clearwater, compact urban development within the urban service area shall be promoted through application of the Clearwater Community Development Code. Objective A.7.2 Diversify and expand the City’s tax base through the annexation of a variety of land uses located within the Clearwater Planning Area. Page 1 City of Clearwater Printed on 5/10/2019 File Number: ANX2019-03010 Policy A.7.2.3 Continue to process voluntary annexations for single-family residential properties upon request. ·The proposed Residential Low (RL) Future Land Use Map category is consistent with the Countywide Plan designation of the property. This designation primarily permits residential uses at a density of 5 units per acre. The proposed zoning district to be assigned to the property is the Low Medium Density Residential (LMDR) District. The use of the subject property is consistent with the uses allowed in the District and the property exceeds the District’s minimum dimensional requirements. The proposed annexation is therefore consistent with the Countywide Plan and the City’s Comprehensive Plan and Community Development Code; and ·The property proposed for annexation is contiguous to existing city limits to the west; therefore, the annexation is consistent with Florida Statutes Chapter 171.044. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 5/10/2019 Ordinance No. 9271-19 ORDINANCE NO. 9271-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, ANNEXING CERTAIN REAL PROPERTY LOCATED GENERALLY ON THE WEST SIDE OF NORWOOD AVENUE, APPROXIMATELY 400 FEET NORTH OF LAKE VIEW ROAD, WHOSE POST OFFICE ADDRESS IS 1204 NORWOOD AVENUE, CLEARWATER, FLORIDA 33756 INTO THE CORPORATE LIMITS OF THE CITY, AND REDEFINING THE BOUNDARY LINES OF THE CITY TO INCLUDE SAID ADDITIONS PROVIDING AN EFFECTIVE DATE. WHEREAS, the owners of the real property described herein and depicted on the map attached hereto as Exhibit A have petitioned the City of Clearwater to annex the property into the City pursuant to Section 171.044, Florida Statutes, and the City has complied with all applicable requirements of Florida law in connection with this ordinance; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The following-described property is hereby annexed into the City of Clearwater and the boundary lines of the City are redefined accordingly: Lot 5, Block F, Oak Acres Addition, Unit 1, as per plat thereof as recorded in Plat Book 34, Pages 31, of the Public Records of Pinellas County, Florida. (ANX2019-03010) The map attached as Exhibit A is hereby incorporated by reference. Section 2. The provisions of this ordinance are found and determined to be consistent with the City of Clearwater Comprehensive Plan. The City Council hereby accepts the dedication of all easements, parks, rights-of-way and other dedications to the public, which have heretofore been made by plat, deed or user within the annexed property. The City Engineer, the City Clerk and the Planning and Development Director are directed to include and show the property described herein upon the official maps and records of the City. Section 3. This ordinance shall take effect immediately upon adoption. The City Clerk shall file certified copies of this ordinance, including the map attached hereto, with the Clerk of the Circuit Court and with the County Administrator of Pinellas County, Florida, within 7 days after adoption, and shall file a certified copy with the Florida Department of State within 30 days after adoption. Ordinance No. 9271-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A SONNY76428 54162 76429 6188 61 F E 61 22 21 20 19 18 10 15 46 23 24 25 26 27 28 8 44 45 16 17 18 19 31 30 29 7 28 15 14 13 12 32 33 34 5 26 27 8 91011 35 36 37 4 11 10 76 5 38 39 2 89 12 3 4 1 9 6 3 40 16 17 20 21 1 2 3 4103103103103103103103103103103103103100.7100.8979710010010088.588.588.588.588.589.490909090124.912010012089.989.989.989.392.2 100 86 18976.2 100807980100 82.5 90 80 79 80 80 80 67.5 73.2 73.2 73.2 73.2 73.273.273.273.2 73.2 73.2 73.2 73.2 67.5 67.5 60 77.5 67.5 98 9897 63.5 76.5 76.5 76.5 65 65 65 666565 60 66 70 196 196 125 126.4 127.5 129.3 130.2 132.2 132.7 131.5 129.8 127.1 124.3 115 111(S) 125(S) 130(S) 130(S) 117(S) 125(S) 138(S) 139(S) 220(S) 77.3 86109.7 89.610595 200 91.3S LAKE AVE LAKEVIEW RD NORWOOD AVE OTTAWA RD ILLINOIS RD TUSCOLA RD 16181191 16511197 161615511256 162516301581161016501552161316071600155216101274 1611160816021551155216161631161916611614160916121606164116121205 1184 1208 16011204 16011188 160016111217 1230 11192 1196 121916311555 16051620155512121624 155515561640158061960916041240 16181271 71241 61316121211 12001660 16921216 1600155116211261 1201 1209 -Not to Scale--Not a Survey-Rev. 3/12/2019 PROPOSED ANNEXATION Owner(s): Linda M. Forgacs Case: ANX2019-03010 Site: 1204 Norwood Avenue Property Size(Acres): ROW (Acres): 0.270 Land Use Zoning PIN: 23-29-15-61884-006-0050 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 307B To: Residential Low (RL) Low Medium Density Residential (LMDR) Ordinance No. 9272-19 ORDINANCE NO. 9272-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE FUTURE LAND USE ELEMENT OF THE COMPREHENSIVE PLAN OF THE CITY, TO DESIGNATE THE LAND USE FOR CERTAIN REAL PROPERTY LOCATED GENERALLY ON THE WEST SIDE OF NORWOOD AVENUE, APPROXIMATELY 400 FEET NORTH OF LAKE VIEW ROAD, WHOSE POST OFFICE ADDRESS IS 1204 NORWOOD AVENUE, CLEARWATER, FLORIDA 33756, UPON ANNEXATION INTO THE CITY OF CLEARWATER, AS RESIDENTIAL LOW (RL); PROVIDING AN EFFECTIVE DATE. WHEREAS, the amendment to the Future Land Use Element of the Comprehensive Plan of the City as set forth in this ordinance is found to be reasonable, proper and appropriate, and is consistent with the City's Comprehensive Plan; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The Future Land Use Element of the Comprehensive Plan of the City of Clearwater is amended by designating the land use category for the hereinafter described property, upon annexation into the City of Clearwater, as follows: Property Land Use Category Lot 5, Block F, Oak Acres Addition, Unit 1, as per plat thereof as recorded in Plat Book 34, Pages 31, of the Public Records of Pinellas County, Florida Residential Low (RL) (ANX2019-03010) The map attached as Exhibit A is hereby incorporated by reference. Section 2. The City Council does hereby certify that this ordinance is consistent with the City’s Comprehensive Plan. Section 3. This ordinance shall take effect immediately upon adoption, contingent upon and subject to the adoption of Ordinance No. 9271-19. Ordinance No. 9272-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A SONNY76428 54162 76429 61884 61902 F E 61 22 21 20 19 18 10 15 46 23 24 25 26 27 28 8 44 45 16 17 18 19 31 30 29 7 28 15 14 13 12 32 33 34 5 26 27 8 9 10 11 35 36 37 4 11 10 7 6 5 38 39 2 8 9 1 2 3 4 1 9 6 3 40 16 17 20 21 1 2 3 4103103103103103103103103103103103103100.7100.8979710010010088.588.588.588.588.589.490909090124.912010012089.989.989.989.392.2 100 86 18976.2 100807980100 82.5 90 80 79 80 80 80 67.5 73.2 73.2 73.2 73.2 73.273.273.273.2 73.2 73.2 73.2 73.2 67.5 67.5 60 77.5 67.5 98 9897 63.5 76.5 76.5 76.5 65 65 65 666565 60 66 70 196 196 125 126.4 127.5 129.3 130.2 132.2 132.7 131.5 129.8 127.1 124.3 115 111(S) 125(S) 130(S) 130(S) 117(S) 125(S) 138(S) 139(S) 220(S) 77.3 86109.7 89.610595 200 91.3RL RL RU RU RL RL RL RL RU RU RU RU RL RL RLS LAKE AVE LAKEVIEW RD NORWOOD AVE OTTAWA RD ILLINOIS RD TUSCOLA RD 16181191 16511197 161615511256 16251630161016501613160716001552161016111608160215521616163116191661161416091612160616121205 1184 1208 16011204 16011188 160016111217 1230 17011192 1196 1219163115551581 16051620155512121624 155215551556164015801619160916041240 16181271 1274 16371241 1551161316121211 12001660 16921216 1600155116211261 16411201 1209 -Not to Scale--Not a Survey-Rev. 3/12/2019 PROPOSED FUTURE LAND USE MAP Owner(s): Linda M. Forgacs Case: ANX2019-03010 Site: 1204 Norwood Avenue Property Size(Acres): ROW (Acres): 0.270 Land Use Zoning PIN: 23-29-15-61884-006-0050 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 307B To: Residential Low (RL) Low Medium Density Residential (LMDR) Ordinance No. 9273-19 ORDINANCE NO. 9273-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE ZONING ATLAS OF THE CITY BY ZONING CERTAIN REAL PROPERTY LOCATED GENERALLY ON THE WEST SIDE OF NORWOOD AVENUE, APPROXIMATELY 400 FEET NORTH OF LAKE VIEW ROAD, WHOSE POST OFFICE ADDRESS IS 1204 NORWOOD AVENUE, CLEARWATER, FLORIDA 33756, UPON ANNEXATION INTO THE CITY OF CLEARWATER, AS LOW MEDIUM DENSITY RESIDENTIAL (LMDR); PROVIDING AN EFFECTIVE DATE. WHEREAS, the assignment of a zoning classification as set forth in this ordinance is found to be reasonable, proper and appropriate, and is consistent with the City's Comprehensive Plan; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The following described property located in Pinellas County, Florida, is hereby zoned as indicated upon annexation into the City of Clearwater, and the Zoning Atlas of the City is amended, as follows: The map attached as Exhibit A is hereby incorporated by reference. Section 2. The City Engineer is directed to revise the Zoning Atlas of the City in accordance with the foregoing amendment. Section 3. This ordinance shall take effect immediately upon adoption, contingent upon and subject to the adoption of Ordinance No. 9271-19. Property Zoning District Lot 5, Block F, Oak Acres Addition, Unit 1, as per plat thereof as recorded in Plat Book 34, Pages 31, of the Public Records of Pinellas County, Florida. Low Medium Density Residential (LMDR) (ANX2019-03010) Ordinance No. 9273-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A SONNY76428 54162 76429 61884 61902 F E 61 22 21 20 19 18 10 15 46 23 24 25 26 27 28 8 44 45 16 17 18 19 31 30 29 7 28 15 14 13 12 32 33 34 5 26 27 8 9 10 11 35 36 37 4 11 10 7 6 5 38 39 2 8 9 1 2 3 4 1 9 6 3 40 16 17 20 21 1 2 3 4103103103103103103103103103103103103100.7100.8979710010010088.588.588.588.588.589.490909090124.912010012089.989.989.989.392.2 100 86 18976.2 100807980100 82.5 90 80 79 80 80 80 67.5 73.2 73.2 73.2 73.2 73.273.273.273.2 73.2 73.2 73.2 73.2 67.5 67.5 60 77.5 67.5 98 9897 63.5 76.5 76.5 76.5 65 65 65 666565 60 66 70 196 196 125 126.4 127.5 129.3 130.2 132.2 132.7 131.5 129.8 127.1 124.3 115 111(S) 125(S) 130(S) 130(S) 117(S) 125(S) 138(S) 139(S) 220(S) 77.3 86109.7 89.610595 200 91.3S LAKE AVE LAKEVIEW RD NORWOOD AVE OTTAWA RD ILLINOIS RD TUSCOLA RD LMDR 16181191 16511184 1197 1208 1601160116161188 1600161115511256 16251630158116201610155216131607160016191609155216101240 16181274 16111608160215511613161215521616120016311619 166116141609161216061641161212051204 1217 1230 17011192 1196 121916311555 16051555121216501624 155515561640158016041271 16371241 12111660 16921216 1600155116211261 1201 1209 -Not to Scale--Not a Survey-Rev. 3/12/2019 PROPOSED ZONING MAP Owner(s): Linda M. Forgacs Case: ANX2019-03010 Site: 1204 Norwood Avenue Property Size(Acres): ROW (Acres): 0.270 Land Use Zoning PIN: 23-29-15-61884-006-0050 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 307B To: Residential Low (RL) Low Medium Density Residential (LMDR) LAKEVIEW RD S LAKE AVE S HIGHLAND AVE BARRY RD S DUNCAN AVE NORWOOD AVE VALENCIA ST OTTAWA RD ILLINOIS RD BALMORAL DR TUSCOLA RD TANGERINE ST S LAKE DR JEFFORDS ST BUDLEIGH ST LOTUS PATH LAUREL DR LIVE OAK CT FLAGSTONE CT JEFFORDS ST ^ PROJECT SITE -Not to Scale--Not a Survey-Rev. 3/11/2019 LOCATION MAP Owner(s): Linda M. Forgacs Case: ANX2019-03010 Site: 1204 Norwood Avenue Property Size(Acres): ROW (Acres): 0.270 Land Use Zoning PIN: 23-29-15-61884-006-0050 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 307B To: Residential Low (RL) Low Medium Density Residential (LMDR) S LAKE AVE S LAKE AVE LAKEVIEW RD LAKEVIEW RD NORWOOD AVE NORWOOD AVE OTTAWA RD OTTAWA RD ILLINOIS RD ILLINOIS RD TUSCOLA RD TUSCOLA RD -Not to Scale--Not a Survey-Rev. 3/12/2019 AERIAL PHOTOGRAPH Owner(s): Linda M. Forgacs Case: ANX2019-03010 Site: 1204 Norwood Avenue Property Size(Acres): ROW (Acres): 0.270 Land Use Zoning PIN: 23-29-15-61884-006-0050 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 307B To: Residential Low (RL) Low Medium Density Residential (LMDR) SONNY76428 54162 76429 6188 61 F E 61 22 21 20 19 18 10 15 46 23 24 25 26 27 28 8 44 45 16 17 18 19 31 30 29 7 28 15 14 13 12 32 33 34 5 26 27 8 91011 35 36 37 4 11 10 76 5 38 39 2 89 12 3 4 1 9 6 3 40 16 17 20 21 1 2 3 4103103103103103103103103103103103103100.7100.8979710010010088.588.588.588.588.589.490909090124.912010012089.989.989.989.392.2 100 86 18976.2 100807980100 82.5 90 80 79 80 80 80 67.5 73.2 73.2 73.2 73.2 73.273.273.273.2 73.2 73.2 73.2 73.2 67.5 67.5 60 77.5 67.5 98 9897 63.5 76.5 76.5 76.5 65 65 65 666565 60 66 70 196 196 125 126.4 127.5 129.3 130.2 132.2 132.7 131.5 129.8 127.1 124.3 115 111(S) 125(S) 130(S) 130(S) 117(S) 125(S) 138(S) 139(S) 220(S) 77.3 86109.7 89.610595 200 91.3S LAKE AVE LAKEVIEW RD NORWOOD AVE OTTAWA RD ILLINOIS RD TUSCOLA RD 16181191 16511197 161615511256 162516301581161016501552161316071600155216101274 1611160816021551155216161631161916611614160916121606164116121205 1184 1208 16011204 16011188 160016111217 1230 11192 1196 121916311555 16051620155512121624 155515561640158061960916041240 16181271 71241 61316121211 12001660 16921216 1600155116211261 1201 1209 -Not to Scale--Not a Survey-Rev. 3/12/2019 EXISTING SURROUNDING USES MAP Owner(s): Linda M. Forgacs Case: ANX2019-03010 Site: 1204 Norwood Avenue Property Size(Acres): ROW (Acres): 0.270 Land Use Zoning PIN: 23-29-15-61884-006-0050 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 307B To: Residential Low (RL) Low Medium Density Residential (LMDR) Single Family Residential Single Family Residential View looking west at subject property, 1204 Norwood Avenue North of subject property ANX2019-03010 Linda M. Forgacs 1204 Norwood Avenue South of subject property East of subject property, across Norwood Avenue View looking northerly along Norwood Avenue View looking southerly along Norwood Avenue Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ANX2019-03009 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Planning CaseIn Control: Planning & Development Agenda Number: 7.2 SUBJECT/RECOMMENDATION: Approve the annexation, initial Future Land Use Map designation of Residential Low (RL) and initial Zoning Atlas designation of Low Medium Density Residential (LMDR) District for 3019 Lake Vista Drive, and pass Ordinances 9268-19, 9269-19, and 9270-19 on first reading. (ANX2019-03009) SUMMARY: This voluntary annexation petition involves a 0.39-acre property consisting of one parcel of land occupied by a single family home. The parcel is located at the southwest corner of the intersection of Moss Avenue and Lake Vista Drive. The applicant is requesting annexation in order to receive sanitary sewer and solid waste service from the City and has been connected to the city sanitary sewer as part of the Kapok Terrace Sanitary Sewer Expansion Project. The property is contiguous to existing city limits to the south and west. It is proposed that the property be assigned a Future Land Use Map designation of Residential Low (RL) and a Zoning Atlas designation of Low Medium Density Residential (LMDR). The Planning and Development Department determined that the proposed annexation is consistent with the provisions of Clearwater Community Development Code Section 4-604.E as follows: ·The property currently receives water service from the City. Collection of solid waste will be provided to the property by the City. The applicant has paid the required sewer impact fee in full and the property has been connected to the city’s sewer system. The property is located within Police District III and service will be administered through the district headquarters located at 2851 N. McMullen Booth Road. Fire and emergency medical services will be provided to this property by Station #49 located at 565 Sky Harbor Drive. The City has adequate capacity to serve this property with sanitary sewer, solid waste, police, fire and EMS service. The proposed annexation will not have an adverse effect on public facilities and their levels of service; and ·The proposed annexation is consistent with and promotes the following objectives and policy of the Clearwater Comprehensive Plan: Objective A.6.4 Due to the built-out character of the City of Clearwater, compact urban development within the urban service area shall be promoted through application of the Clearwater Community Development Code. Objective A.7.2 Diversify and expand the City’s tax base through the annexation of a variety of land uses located within the Clearwater Planning Area. Page 1 City of Clearwater Printed on 5/10/2019 File Number: ANX2019-03009 Policy A.7.2.3 Continue to process voluntary annexations for single-family residential properties upon request. ·The proposed Residential Low (RL) Future Land Use Map category is consistent with the Countywide Plan designation of the property. This designation primarily permits residential uses at a density of 5 units per acre. The proposed zoning district to be assigned to the property is the Low Medium Density Residential (LMDR) District. The use of the subject property is consistent with the uses allowed in the District and the property exceeds the District’s minimum dimensional requirements. The proposed annexation is therefore consistent with the Countywide Plan and the City’s Comprehensive Plan and Community Development Code; and ·The property proposed for annexation is contiguous to existing city limits to the south and west; therefore, the annexation is consistent with Florida Statutes Chapter 171.044. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 5/10/2019 Ordinance No. 9268-19 ORDINANCE NO. 9268-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, ANNEXING CERTAIN REAL PROPERTY LOCATED GENERALLY NORTH OF DREW STREET, SOUTH OF SR 590 AND WITHIN 1/4 MILE WEST OF NORTH MCMULLEN BOOTH ROAD, WHOSE POST OFFICE ADDRESS IS 3019 LAKE VISTA DRIVE, WITHIN CLEARWATER, FLORIDA 33759 INTO THE CORPORATE LIMITS OF THE CITY, AND REDEFINING THE BOUNDARY LINES OF THE CITY TO INCLUDE SAID ADDITIONS; PROVIDING AN EFFECTIVE DATE. WHEREAS, the owner of the real property described herein and depicted on the map attached hereto as Exhibit A has petitioned the City of Clearwater to annex the property into the City pursuant to Section 171.044, Florida Statutes, and the City has complied with all applicable requirements of Florida law in connection with this ordinance; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The following-described property is hereby annexed into the City of Clearwater and the boundary lines of the City are redefined accordingly: Lot 4, Block G, Kapok Terrace, according to the map or plat thereof as recorded in Plat Book 36, Pages 14 and 15, of the Public Records of Pinellas County, Florida. (ANX2019-03009) The map attached as Exhibit A is hereby incorporated by reference. Section 2. The provisions of this ordinance are found and determined to be consistent with the City of Clearwater Comprehensive Plan. The City Council hereby accepts the dedication of all easements, parks, rights-of-way and other dedications to the public, which have heretofore been made by plat, deed or user within the annexed property. The City Engineer, the City Clerk and the Planning and Development Director are directed to include and show the property described herein upon the official maps and records of the City. Section 3. This ordinance shall take effect immediately upon adoption. The City Clerk shall file certified copies of this ordinance, including the map attached hereto, with the Clerk of the Circuit Court and with the County Administrator of Pinellas County, Florida, within 7 days after adoption, and shall file a certified copy with the Florida Department of State within 30 days after adoption. Ordinance No. 9268-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A 742.81230363LAKEVISTA DRIVE 270000LAKE LOUISE LAKE LOUISE LAKE CAROL 45126 E F D G B 1 2 3 456 (7) 1234567 8 9 10 11 12 13 14 123456 7 8 9 10 11 1 2 3 4 5 6 7 8 9101112 13 5 67 8910 11 12 13 14 15 (14) PARK PARK PUBLIC C(C)MOS S AVE LAKE VISTA DR GLEN OAK AVE N GRAND VIEW AVE GLEN OAK AVE ETERRACE VIEW LN 8 0 6 8 0 0 808 7 1 2 800 918 906 8 0 1 708 701 900 911 30353001301030613034299830413013304230363059304030123001302130473019305330413031305530353006304930293007304130583023304830523020300030473024303030463057302530263007300630403046901 809 801 815 907 30193030301230503036306030473013304130403053304430352950-Not to Scale--Not a Survey-Rev. 3/13/2019 PROPOSED ANNEXATION Owner(s): Jennifer Lynn Kaprak and Brien Michael Jourige, Sr. Case: ANX2019-03009 Site: 3019 Lake Vista Drive Property Size(Acres): ROW (Acres): 0.39 Land Use Zoning PIN: 09-29-16-45126-007-0040 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) Ordinance No. 9269-19 ORDINANCE NO. 9269-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE FUTURE LAND USE ELEMENT OF THE COMPREHENSIVE PLAN OF THE CITY, TO DESIGNATE THE LAND USE FOR CERTAIN REAL PROPERTY LOCATED GENERALLY NORTH OF DREW STREET, SOUTH OF SR 590 AND WITHIN 1/4 MILE WEST OF NORTH MCMULLEN BOOTH ROAD, WHOSE POST OFFICE ADDRESS IS 3019 LAKE VISTA DRIVE WITHIN CLEARWATER, FLORIDA 33759, UPON ANNEXATION INTO THE CITY OF CLEARWATER, AS RESIDENTIAL LOW (RL); PROVIDING AN EFFECTIVE DATE. WHEREAS, the amendment to the Future Land Use Element of the Comprehensive Plan of the City as set forth in this ordinance is found to be reasonable, proper and appropriate, and is consistent with the City's Comprehensive Plan; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The Future Land Use Element of the Comprehensive Plan of the City of Clearwater is amended by designating the land use category for the hereinafter described property, upon annexation into the City of Clearwater, as follows: Properties Land Use Category Lot 4, Block G, Kapok Terrace, according to the map or plat thereof as recorded in Plat Book 36, Pages 14 and 15, of the Public Records of Pinellas County, Florida. Residential Low (RL) (ANX2019-03009) The map attached as Exhibit A is hereby incorporated by reference. Section 2. The City Council does hereby certify that this ordinance is consistent with the City’s Comprehensive Plan. Section 3. This ordinance shall take effect immediately upon adoption, contingent upon and subject to the adoption of Ordinance No. 9268-19. Ordinance No. 9269-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A 742.81230363LAKEVISTA DRIVELAKE LOUISE LAKE LOUISE LAKE CAROL 45126 E F D G B 1 2 3 456 (7) 1234567 8 9 10 11 12 13 14 123456 7 8 9 10 11 1 2 3 4 5 6 7 8 9101112 13 5 67 8910 11 12 13 14 15 (14) PARK PARK PUBLIC C (C) RL RL RL RL RL RL R/OS RL RU R/OS WATER RL WATER MOS S A V E LAKE VISTA DR GLEN OAK AVE N GRAND VIEW AVE GLEN OAK AVE ETERRACE VIEW LN 8 0 6 8 0 0 808 7 1 2 800 918 602 906 8 0 1 708 701 900 911 30353010306130342998304130423036305930403012300130213047301930533041303130553035300630493029300730413058302330413048305230203000304730243030304630573025302630353007300630403046901 911 809 801 815 907 807 30013019301330123047301330633053-Not to Scale--Not a Survey-Rev. 3/13/2019 PROPOSED FUTURE LAND USE MAP Owner(s): Jennifer Lynn Kaprak and Brien Michael Jourige, Sr. Case: ANX2019-03009 Site: 3019 Lake Vista Drive Property Size(Acres): ROW (Acres): 0.39 Land Use Zoning PIN: 09-29-16-45126-007-0040 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) Ordinance No. 9270-19 ORDINANCE NO. 9270-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE ZONING ATLAS OF THE CITY BY ZONING CERTAIN REAL PROPERTY LOCATED GENERALLY NORTH OF DREW STREET, SOUTH OF SR 590 AND WITHIN 1/4 MILE WEST OF NORTH MCMULLEN BOOTH ROAD, WHOSE POST OFFICE ADDRESS IS 3019 LAKE VISTA DRIVE, WITHIN CLEARWATER, FLORIDA 33759, UPON ANNEXATION INTO THE CITY OF CLEARWATER, AS LOW MEDIUM DENSITY RESIDENTIAL (LMDR); PROVIDING AN EFFECTIVE DATE. WHEREAS, the assignment of a zoning classification as set forth in this ordinance is found to be reasonable, proper and appropriate, and is consistent with the City's Comprehensive Plan; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The following described property located in Pinellas County, Florida, is hereby zoned as indicated upon annexation into the City of Clearwater, and the Zoning Atlas of the City is amended, as follows: The map attached as Exhibit A is hereby incorporated by reference. Section 2. The City Engineer is directed to revise the Zoning Atlas of the City in accordance with the foregoing amendment. Section 3. This ordinance shall take effect immediately upon adoption, contingent upon and subject to the adoption of Ordinance No. 9268-19. Property Zoning District Lot 4, Block G, Kapok Terrace, according to the map or plat thereof as recorded in Plat Book 36, Pages 14 and 15, of the Public Records of Pinellas County, Florida. Low Medium Density Residential (LMDR) (ANX2019-03009) Ordinance No. 9270-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A 742.81230363LAKEVISTA DRIVELAKE LOUISE LAKE LOUISE LAKE CAROL 45126 E F D G B 1 2 3 456 (7) 1234567 8 9 10 11 12 13 14 123456 7 8 9 10 11 1 2 3 4 5 6 7 8 9101112 13 5 67 8910 11 12 13 14 15 (14) PARK PARK PUBLIC (C)MOS S A V E LAKE VISTA DR GLEN OAK AVE N GRAND VIEW AVE GLEN OAK AVE ETERRACE VIEW LN LMDR OS/R LDR OS/R 806 8 0 0 808 712 800 918 906 8 0 1 708 701 900 911 303530013010306130342998304130133042303630123059304030123001302130473019305330413047303130133055303530063049302930073041305830233041304830523020300030473024306330303046305730253053302630353007300630403046901 911 915 917 809 801 815 907 807 301930303024305030363060304030442950-Not to Scale--Not a Survey-Rev. 3/13/2019 PROPOSED ZONING MAP Owner(s): Jennifer Lynn Kaprak and Brien Michael Jourige, Sr. Case: ANX2019-03009 Site: 3019 Lake Vista Drive Property Size(Acres): ROW (Acres): 0.39 Land Use Zoning PIN: 09-29-16-45126-007-0040 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) DREW ST MOSS AVE N McMULLEN BOOTH RDMERRILL AVE HOYT AVE GRAND VIEW AVE LAKE VISTA DR GLEN OAK AVE N WOLFE RD THOMAS RD TERRACE VIEW LN CHAMBLEE LN BORDEAUX LN SAN MATEO ST ^ PROJECT SITE -Not to Scale--Not a Survey-Rev. 3/13/2019 LOCATION MAP Owner(s): Jennifer Lynn Kaprak and Brien Michael Jourige, Sr. Case: ANX2019-03009 Site: 3019 Lake Vista Drive Property Size(Acres): ROW (Acres): 0.39 Land Use Zoning PIN: 09-29-16-45126-007-0040 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) MOSS AVE MOSS AVE GRAND VIEW AVE GRAND VIEW AVE N McMULLEN BOOTH RD N McMULLEN BOOTH RD LAKE VISTA DR LAKE VISTA DR GLEN OAK AVE NGLEN OAK AVE N KAPOK KOVE DR KAPOK KOVE DR TERRACE VIEW LN TERRACE VIEW LN GLEN OAK AVE EGLEN OAK AVE E-Not to Scale--Not a Survey-Rev. 3/13/2019 AERIAL PHOTOGRAPH Owner(s): Jennifer Lynn Kaprak and Brien Michael Jourige, Sr. Case: ANX2019-03009 Site: 3019 Lake Vista Drive Property Size(Acres): ROW (Acres): 0.39 Land Use Zoning PIN: 09-29-16-45126-007-0040 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) EXISTING SURROUNDING USES MAP Owner(s): Jennifer Lynn Kaprak and Brien Michael Jourige, Sr. Case:ANX2019-03009 Site: 3019 Lake Vista Drive Property Size(Acres): ROW (Acres): 0.39 Land Use Zoning PIN: 09-29-16-45126-007-0040 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) 742.81230363LAKEVISTA DRIVE 270000LAKE LOUISE LAKE LOUISE LAKE CAROL 45126 E F D G B 1 2 3 456 (7) 1234567 8 9 10 11 12 13 14 123456 7 8 9 10 11 1 2 3 4 5 6 7 8 9101112 13 5 67 8910 11 12 13 14 15 (14) PARK PARK PUBLIC C(C)MOSS AVE LAKE VISTA DR GLEN OAK AVE N GRAND VIEW AVE GLEN OAK AVE ETERRACE VIEW LN 8 0 6 8 0 0 808 7 1 2 800 918 906 8 0 1 708 701 900 911 30353001301030613034299830413013304230363059304030123001302130473019305330413031305530353006304930293007304130583023304830523020300030473024303030463057302530263007300630403046830193 301233330473013304133053330352-Not to Scale--Not a Survey-Rev. 3/13/2019 Single Family Residential Single Family Residential View looking south at subject property, 3019 Lake Vista Drive West of subject property ANX2019-03009 Jennifer L. Kaprak & Brian M. Jourige Sr. 3019 Lake Vista Drive East of subject property North of subject property, across Lake Vista Drive View looking easterly along Lake Vista Drive View looking westerly along Lake Vista Drive Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ATA2019-03001 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Planning CaseIn Control: Planning & Development Agenda Number: 7.3 SUBJECT/RECOMMENDATION: Approve the annexation, initial Future Land Use Map designation of Residential Low (RL) and initial Zoning Atlas designation of Low Medium Density Residential (LMDR) District for 3057 Terrace View Lane and 3040 Grand View Avenue, and pass Ordinances 9274-19, 9275-19, and 9276-19 on first reading. (ATA2019-03001) SUMMARY: The City of Clearwater Public Utilities Department is expanding sewer service into the Kapok Terrace neighborhood located generally north of Drew Street, south of SR 590, and within ¼ mile west of McMullen Booth Road. This application includes two parcels of land in the expansion area which are occupied by two single family homes totaling 0.38 acres. These properties are subject to Agreements to Annex that were recorded in 2016. The two properties are contiguous to existing city limits along at least one property boundary and are eligible for annexation. It is proposed that the properties be assigned a Future Land Use Map designation of Residential Low (RL) and a Zoning Atlas designation of Low Medium Density Residential (LMDR). The Planning and Development Department determined that the proposed annexations are consistent with the provisions of Clearwater Community Development Code Section 4-604.E as follows: ·The properties currently receive water service from the City. Collection of solid waste will be provided to the properties by the City. The applicants have paid the required sewer impact fee in full and have been connected to the city’s sewer system. The properties are located within Police District III and service will be administered through the district headquarters located at 2851 N. McMullen Booth Road. Fire and emergency medical services will be provided to these properties by Station #49 located at 565 Sky Harbor Drive. The City has adequate capacity to serve these properties with sanitary sewer, solid waste, police, fire and EMS service. The proposed annexations will not have an adverse effect on public facilities and their levels of service; and ·The proposed annexations are consistent with and promote the following objectives and policy of the Clearwater Comprehensive Plan: Objective A.6.4 Due to the built-out character of the City of Clearwater, compact urban development within the urban service area shall be promoted through application of the Clearwater Community Development Code. Objective A.7.2 Diversify and expand the City’s tax base through the annexation of a variety of land uses located within the Clearwater Planning Area. Page 1 City of Clearwater Printed on 5/10/2019 File Number: ATA2019-03001 Policy A.7.1.3 Invoke agreements to annex where properties located within enclaves meet the contiguity requirements of Florida Statutes Chapter 171. ·The proposed Residential Low (RL) Future Land Use Map category to be assigned to both properties is consistent with the Countywide Plan designation. This designation primarily permits residential uses at a density of 5 units per acre. The proposed zoning district to be assigned to the properties is Low Medium Density Residential (LMDR). The use of the subject properties is consistent with the uses allowed in the District and the properties exceed the District’s minimum dimensional requirements. The proposed annexations are therefore consistent with the Countywide Plan and the City’s Comprehensive Plan and Community Development Code; and ·The properties proposed for annexation are contiguous to existing city limits along at least one boundary; therefore, the annexations are consistent with Florida Statutes Chapter 171.044. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 5/10/2019 Ordinance No. 9274-19 ORDINANCE NO. 9274-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, ANNEXING CERTAIN REAL PROPERTIES LOCATED GENERALLY NORTH OF DREW STREET, SOUTH OF SR 590 AND WITHIN 1/4 MILE WEST OF NORTH MCMULLEN BOOTH ROAD, WHOSE POST OFFICE ADDRESSES ARE 3040 GRAND VIEW AVENUE AND 3057 TERRACE VIEW LANE, ALL WITHIN CLEARWATER, FLORIDA 33759 INTO THE CORPORATE LIMITS OF THE CITY, AND REDEFINING THE BOUNDARY LINES OF THE CITY TO INCLUDE SAID ADDITIONS; PROVIDING AN EFFECTIVE DATE. WHEREAS, the owners of the real properties described herein and depicted on the map attached hereto as Exhibit B have petitioned the City of Clearwater to annex the properties into the City pursuant to Section 171.044, Florida Statutes, and the City has complied with all applicable requirements of Florida law in connection with this ordinance; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The following-described properties are hereby annexed into the City of Clearwater and the boundary lines of the City are redefined accordingly: See attached Exhibit A for Legal Descriptions. (ATA2019-03001) The map attached as Exhibit B is hereby incorporated by reference. Section 2. The provisions of this ordinance are found and determined to be consistent with the City of Clearwater Comprehensive Plan. The City Council hereby accepts the dedication of all easements, parks, rights-of-way and other dedications to the public, which have heretofore been made by plat, deed or user within the annexed property. The City Engineer, the City Clerk and the Planning and Development Director are directed to include and show the property described herein upon the official maps and records of the City. Section 3. This ordinance shall take effect immediately upon adoption. The City Clerk shall file certified copies of this ordinance, including the map attached hereto, with the Clerk of the Circuit Court and with the County Administrator of Pinellas County, Florida, within 7 days after adoption, and shall file a certified copy with the Florida Department of State within 30 days after adoption. Ordinance No. 9274-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A LEGAL DESCRIPTIONS ATA2019-03001 ========================================================================================= No. Parcel ID Lot No., Block No. Address 1. 09-29-16-45126-002-0060 Lot 6, Block B 3057 Terrace View Lane 2. 09-29-16-45126-002-0120 Lot 12, Block B 3040 Grand View Avenue The above in KAPOK TERRACE, as recorded in PLAT BOOK 36, PAGE 14, of the Public Records of Pinellas County, Florida. Exhibit B D G B A O I 234 5123456 7 8 9 10 11 6 7 8 9 2345 67 8910 11 12 13 14 15 16 17 18 23456789 10 11 12 13 14 15 16 17 23456789 10 11 12 13 14 15 16 17 1 2 1 1 2 11 12 116 17 103138MOSS AVE MERRILL AVE GRAND VIEW AVE N McMULLEN BOOTH RD TERRACE VIEW LN GLEN OAK AVE E601 511510 505 600 7 1 2 807 801 701 602 8 0 1 8 0 6 8 0 0 70 8 800 3077305230703041307130703041304630523076304130653047303530233081304630803024303430403074302630253058306530643053306330473047307130463064305330763059305930583069307530533035307730406 7 304031003057-Not to Scale--Not a Survey-Rev. 3/25/2019 PROPOSED ANNEXATION Owner(s): Louis Balan & Ena Balan Stephanie I. Smith & Scott D. Smith Case: ATA2019-03001 Site: 3057 Terrace View Lane 3040 Grand View Avenue Property Size(Acres): ROW (Acres): 0.38 Land Use Zoning PIN: 09-29-16-45126-002-0060 09-29-16-45126-002-0120 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) Ordinance No. 9275-19 ORDINANCE NO. 9275-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE FUTURE LAND USE ELEMENT OF THE COMPREHENSIVE PLAN OF THE CITY, TO DESIGNATE THE LAND USE FOR CERTAIN REAL PROPERTIES LOCATED GENERALLY NORTH OF DREW STREET, SOUTH OF SR 590 AND WITHIN 1/4 MILE WEST OF NORTH MCMULLEN BOOTH ROAD, WHOSE POST OFFICE ADDRESSES ARE 3040 GRAND VIEW AVENUE AND 3057 TERRACE VIEW LANE, ALL WITHIN CLEARWATER, FLORIDA 33759, UPON ANNEXATION INTO THE CITY OF CLEARWATER, AS RESIDENTIAL LOW (RL); PROVIDING AN EFFECTIVE DATE. WHEREAS, the amendment to the Future Land Use Element of the Comprehensive Plan of the City as set forth in this ordinance is found to be reasonable, proper and appropriate, and is consistent with the City's Comprehensive Plan; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The Future Land Use Element of the Comprehensive Plan of the City of Clearwater is amended by designating the land use category for the hereinafter described properties, upon annexation into the City of Clearwater, as follows: Properties Land Use Category See attached Exhibit A for Legal Descriptions. Residential Low (RL) (ATA2019-03001) The map attached as Exhibit B is hereby incorporated by reference. Section 2. The City Council does hereby certify that this ordinance is consistent with the City’s Comprehensive Plan. Section 3. This ordinance shall take effect immediately upon adoption, contingent upon and subject to the adoption of Ordinance No. 9274-19. Ordinance No. 9275-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A LEGAL DESCRIPTIONS ATA2019-03001 ========================================================================================= No. Parcel ID Lot No., Block No. Address 1. 09-29-16-45126-002-0060 Lot 6, Block B 3057 Terrace View Lane 2. 09-29-16-45126-002-0120 Lot 12, Block B 3040 Grand View Avenue The above in KAPOK TERRACE, as recorded in PLAT BOOK 36, PAGE 14, of the Public Records of Pinellas County, Florida. Exhibit B D G B A O I 234 5123456 7 8 9 10 11 6 7 8 9 2345 67 8910 11 12 13 14 15 16 17 18 23456789 10 11 12 13 14 15 16 17 23456789 10 11 12 13 14 15 16 17 1 2 1 1 2 11 12 116 17 103138RL RL RL RL RL RL RL RL CG RU CG RU RUMOSS AVE MERRILL AVE GRAND VIEW AVE N McMULLEN BOOTH RD TERRACE VIEW LN GLEN OAK AVE E601 511510 505 600 712 807 801 602 8 0 6 8 0 0 708 800 3077305230703041307130703041304630523076304130653047303530233081304630303080302430343040307430263025305830653064305330633047304730713046306430533076305930593058306930753053303530773040701 801 607 707 30403057-Not to Scale--Not a Survey-Rev. 3/15/2019 PROPOSED FUTURE LAND USE MAP Owner(s): Louis Balan & Ena Balan Stephanie I. Smith & Scott D. Smith Case: ATA2019-03001 Site: 3057 Terrace View Lane 3040 Grand View Avenue Property Size(Acres): ROW (Acres): 0.38 Land Use Zoning PIN: 09-29-16-45126-002-0060 09-29-16-45126-002-0120 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) DREW ST MOSS AVE N McMULLEN BOOTH RD MERRILL AVE HOYT AVE GRAND VIEW AVE WOLFE RD LAKE VISTA DR GLEN OAK AVE N THOMAS RD CHAMBLEE LN BORDEAUX LN SAN MATEO ST SAN BERNADINO ST ^ PROJECT SITE -Not to Scale--Not a Survey-PROJECT SITE ^ Rev. 3/25/2019 LOCATION MAP Owner(s): Louis Balan & Ena Balan Stephanie I. Smith & Scott D. Smith Case: ATA2019-03001 Site: 3057 Terrace View Lane 3040 Grand View Avenue Property Size(Acres): ROW (Acres): 0.38 Land Use Zoning PIN: 09-29-16-45126-002-0060 09-29-16-45126-002-0120 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) MOSS AVE MOSS AVE MERRILL AVE MERRILL AVE GRAND VIEW AVE GRAND VIEW AVE N McMULLEN BOOTH RD N McMULLEN BOOTH RD TERRACE VIEW LN TERRACE VIEW LN GLEN OAK AVE EGLEN OAK AVE E-Not to Scale--Not a Survey-Rev. 3/25/2019 AERIAL PHOTOGRAPH Owner(s): Louis Balan & Ena Balan Stephanie I. Smith & Scott D. Smith Case: ATA2019-03001 Site: 3057 Terrace View Lane 3040 Grand View Avenue Property Size(Acres): ROW (Acres): 0.38 Land Use Zoning PIN: 09-29-16-45126-002-0060 09-29-16-45126-002-0120 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) D G B A O I 234 5123456 7 8 9 10 11 6 7 8 9 2345 67 8910 11 12 13 14 15 16 17 18 23456789 10 11 12 13 14 15 16 17 23456789 10 11 12 13 14 15 16 17 1 2 1 1 2 11 12 116 17 103138MOSS AVE MERRILL AVE GRAND VIEW AVE N McMULLEN BOOTH RD TERRACE VIEW LN GLEN OAK AVE E601 511510 505 600 7 1 2 807 801 701 602 8 0 1 8 0 6 8 0 0 70 8 800 3077305230703041307130703041304630523076304130653047303530233081304630803024303430403074302630253058306530643053306330473047307130463064305330763059305930583069307530533035307730406 7 304031003057-Not to Scale--Not a Survey-Rev. 3/25/2019 EXISTING SURROUNDING USES MAP Owner(s): Louis Balan & Ena Balan Stephanie I. Smith & Scott D. Smith Case: ATA2019-03001 Site: 3057 Terrace View Lane 3040 Grand View Avenue Property Size(Acres): ROW (Acres): 0.38 Land Use Zoning PIN: 09-29-16-45126-002-0060 09-29-16-45126-002-0120 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) Single Family Residential Single Family Residential View looking north at subject property, 3040 Grand View Avenue East of subject property West of subject property South of subject property, across Grand View Avenue ATA2019-03001 Stephanie Smith & Scott Smith 3040 Grand View Avenue View looking easterly along Grand View Avenue View looking westerly along Grand View Avenue View looking south at subject property, 3035 Terrace View Lane West of subject property ATA2019-03001 Louis Balan and Ena Balan 3057 Terrace View Lane East of subject property North of subject property, across Terrace View Lane View looking easterly along Terrace View Lane View looking westerly along Terrace View Lane Ordinance No. 9276-19 ORDINANCE NO. 9276-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING THE ZONING ATLAS OF THE CITY BY ZONING CERTAIN REAL PROPERTIES LOCATED GENERALLY NORTH OF DREW STREET, SOUTH OF SR 590 AND WITHIN 1/4 MILE WEST OF NORTH MCMULLEN BOOTH ROAD, WHOSE POST OFFICE ADDRESSES ARE 3040 GRAND VIEW AVENUE AND 3057 TERRACE VIEW LANE,ALL WITHIN CLEARWATER, FLORIDA 33759, UPON ANNEXATION INTO THE CITY OF CLEARWATER, AS LOW MEDIUM DENSITY RESIDENTIAL (LMDR); PROVIDING AN EFFECTIVE DATE. WHEREAS, the assignment of a zoning classification as set forth in this ordinance is found to be reasonable, proper and appropriate, and is consistent with the City's Comprehensive Plan; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The following described properties located in Pinellas County, Florida, are hereby zoned as indicated upon annexation into the City of Clearwater, and the Zoning Atlas of the City is amended, as follows: The map attached as Exhibit B is hereby incorporated by reference. Section 2. The City Engineer is directed to revise the Zoning Atlas of the City in accordance with the foregoing amendment. Section 3. This ordinance shall take effect immediately upon adoption, contingent upon and subject to the adoption of Ordinance No. 9274-19. Property Zoning District See attached Exhibit A for Legal Descriptions Low Medium Density Residential (LMDR) (ATA2019-03001) Ordinance No. 9276-19 PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED George N. Cretekos Mayor Approved as to form: Michael P. Fuino Assistant City Attorney Attest: Rosemarie Call City Clerk Exhibit A LEGAL DESCRIPTIONS ATA2019-03001 ========================================================================================= No. Parcel ID Lot No., Block No. Address 1. 09-29-16-45126-002-0060 Lot 6, Block B 3057 Terrace View Lane 2. 09-29-16-45126-002-0120 Lot 12, Block B 3040 Grand View Avenue The above in KAPOK TERRACE, as recorded in PLAT BOOK 36, PAGE 14, of the Public Records of Pinellas County, Florida. Exhibit B D G B A O I 234 5123456 7 8 9 10 11 6 7 8 9 2345 67 8910 11 12 13 14 15 16 17 18 23456789 10 11 12 13 14 15 16 17 23456789 10 11 12 13 14 15 16 17 1 2 1 1 2 11 12 116 17 103138MOSS AVE MERRILL AVE GRAND VIEW AVE N McMULLEN BOOTH RD TERRACE VIEW LN GLEN OAK AVE ELMDR C 601 511510 505 600 7 1 2 807 801 701 602 8 0 1 8 0 6 8 0 0 708 800 30773052307030413071307030413046305230763041306530473035302330813046303030803024303430403074302630253058306530643053306330473047307130463064305330763059305830693075303530773040OS/R 6 7 3040305930533057-Not to Scale--Not a Survey-Rev. 3/15/2019 PROPOSED ZONING MAP Owner(s): Louis Balan & Ena Balan Stephanie I. Smith & Scott D. Smith Case: ATA2019-03001 Site: 3057 Terrace View Lane 3040 Grand View Avenue Property Size(Acres): ROW (Acres): 0.38 Land Use Zoning PIN: 09-29-16-45126-002-0060 09-29-16-45126-002-0120 From : Residential Low (RL) R-3 Single Family Residential Atlas Page: 283A To: Residential Low (RL) Low Medium Density Residential (LMDR) Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6059 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Public Utilities Agenda Number: 8.1 SUBJECT/RECOMMENDATION: Authorize a blanket purchase order with Xylem, Inc. of Apopka, FL, in the annual amount of $500,000.00 with the option for two, one-year term extensions for the purchase of Flygt Pumps, replacement parts, and factory authorized service. (consent) SUMMARY: Flygt Pumps are standardized in the City’s wastewater facilities, lift stations, submerged internal recycle, and backwash pumping applications due to reliability of the pumps and to facilitate operational and maintenance efficiency. Standardization of pumping equipment reduces redesign/retrofit of the piping systems and overall down time, which is critical to maintaining regulatory compliance. Standardization also reduces the required stocking of parts, replacement pumps, and the cost of maintenance operations. In accordance with City Code Section 2.564 (1)(b), Exceptions to Bidding, Xylem has been determined a sole source vendor for Flygt Pumps, replacement parts and factory authorized service. Xylem is offering the City a 9.5% discount. APPROPRIATION CODE AND AMOUNT: Budgeted funds are available in Public Utilities operating cost centers 550400 Operating Supplies & Materials to cover the cost of the contract for FY19. Future fiscal year budgets will include funding for these expenses. Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6152 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Solid Waste/General Services Agenda Number: 9.1 SUBJECT/RECOMMENDATION: Authorize a purchase order to JD Smith Pest Control, Clearwater, FL, for the Main Library termite treatment extended warranty, not to exceed annual amount of $11,541.00; including two one-year renewal terms and authorize the appropriate officials to execute same. (consent) SUMMARY: On May 7, 2018, City Manager, Bill Horne, authorized and approved JD Smith to tent the Main Library at a cost of $96,175.00. The Main Library was tented and treated for dry wood termites on May 31, 2018. Staff is requesting approval for the annual extended warranty to JD Smith Pest Control for re-inspections and retreatments as necessary with the option of two additional one-year renewals. APPROPRIATION CODE AND AMOUNT: 5656531-530300 $11,541.00 These funds are available in the operating expense of Building and Maintenance as budgeted each Fiscal Year. Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-5996 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Official Records & Legislative Services Agenda Number: 10.1 SUBJECT/RECOMMENDATION: Amend the Clearwater Code of Ordinances, Section 2.251, changing the composition of the of the Sister Cities Advisory Board to include a representative from the Clearwater Arts Alliance, Inc. and pass Ordinance 9248-19 on first reading. SUMMARY: The Clearwater Arts Foundation has been dissolved and renamed the Clearwater Arts Alliance, Inc. The proposed code change updates the organization with their current name. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 1 City of Clearwater Printed on 5/10/2019 Ordinance No. 9248-19 ORDINANCE NO. 9248-19 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, AMENDING SECTION 2.251, CLEARWATER CODE OF ORDINANCES, CHANGING THE COMPOSITION OF THE SISTER CITIES ADVISORY BOARD TO INLCUDE A REPRESENTATIVE FROM THE CLEARWATER ARTS ALLIANCE, INC.; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Sister Cities Advisory Board advises the City Council on issues regarding the sister cities program; and WHEREAS, the Clearwater Arts Foundation is no longer an active organization, now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA: Section 1. Section 2.251, Clearwater Code of Ordinances, is hereby amended as follows: Section 2.251 - Composition The sister cities advisory board shall consist of seven members; one member of the city council, a representative of the local business community, the School Board's World Language Coordinator or designee, a Clearwater Sister Cities Inc. representative, a Clearwater Arts Foundation Clearwater Arts Alliance, Inc. representative, a youth member who shall be nineteen years old or younger, and an at-large member. Representatives of the Clearwater Sister Cities Inc. and Clearwater Arts Foundation Clearwater Arts Alliance, Inc. shall be nominated by their respective organizations.Section 2.063,Code of Ordinances notwithstanding, the representatives of Clearwater Sister Cities, Inc., the local business community, the School Board's World Language Coordinator or designee, and the Clearwater Arts Foundation Clearwater Arts Alliance, Inc. representative shall not be required to reside within the City of Clearwater. Section 2. This ordinance shall take effect immediately upon adoption. PASSED ON FIRST READING _____________________ PASSED ON SECOND AND FINAL _____________________ READING AND ADOPTED ___________________________ George N. Cretekos Mayor Ordinance No. 9248-192 Approved as to form: Attest: ______________________________________________________ Owen Kohler Rosemarie Call Assistant City Attorney City Clerk Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6146 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Legal Department Agenda Number: 11.1 SUBJECT/RECOMMENDATION: Request for authority to institute a civil action on behalf of the City against the Estate of Mark Leonard Frank Sr. to recover $822.51 for an outstanding Utility Customer Service Bill. (consent) SUMMARY: The City has a claim pending against the Estate of Mark Leonard for $822.51 for unpaid utility bills. The executor of the estate has filed an objection to our claim. This makes it necessary to file a separate action to protect our claim. Authority is sought to file an action in small claims court to prosecute our claim. APPROPRIATION CODE AND AMOUNT: Funds are available in cost code 0109600-548000 (Other Charges). Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6159 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Legal Department Agenda Number: 11.2 SUBJECT/RECOMMENDATION: Request for authority to institute a civil action on behalf of the City against Calvin Ladd to enforce an order of the Clearwater Municipal Code Enforcement Board. (consent) SUMMARY: In late 2018, the City’s Building Official declared Mr. Ladd’s property unsafe for human habitation and requested that Mr. Ladd abate the unsafe condition by a date certain. Mr. Ladd did not abate the unsafe condition by this date and the City initiated a Code Board action that was heard on January 23, 2019. Mr. Ladd did not attend this hearing, was found in violation of the City’s unsafe building code, and then ordered to correct the violation by January 30, 2019. The Code Board’s order also provided that if Mr. Ladd did not correct the violation by January 30, 2019, the City was authorized to enter onto the property and take all reasonable actions, including demolition, to bring the property into compliance. To date, Mr. Ladd has not complied with the Code Board’s order and his property is still in violation of the City’s unsafe building code. Additionally, Mr. Ladd lives in the property making it all but impossible for the City to correct the violation without judicial intervention. Therefore, authority is sought in circuit court to enforce the Code Board’s order. Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6136 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: City Manager Verbal Report In Control: Council Work Session Agenda Number: 12.1 SUBJECT/RECOMMENDATION: Report on Letter of Interest Process for the Adaptive Reuse of the Former Fire Station 45 Page 1 City of Clearwater Printed on 5/10/2019 Report on Letter of Interest Process for the Adaptive Reuse of the Former Fire Station 45 Per City Council instruction, a request for Letters of Interest (LOI) for the adaptive reuse of the former Fire Station 45 site was published on January 7, 2019. This task was assigned to the CRA, as the goal was to provide the CRA with the ability to better understand the type and level of interest in this building and provide input to the CRA on possible reuse scenarios or considerations. Interested parties were advised that: • The building condition was evaluated in 2008 by HDR against the 2004 Florida Building Code. The report concluded the building is suitable for substantial renovation and recommends replacement of the exterior cladding, roof and windows. A summary of the conditions report was made available. • A fundamental goal of the sale of this site to other entities is to create a financially sustainable future which will require no City or CRA funds for future operating and maintenance expenses once the lease or sale has been executed. The CRA currently has façade grants available and limited funds for environmental remediation. • The opportunity for site visits was made available after February 15, 2019. • The LOI were due no later than noon Monday, April 8, 2019 to CRA staff. No site visit requests were received and only one LOI was received. The LOI received was from the Church of Scientology Flag Service Organization Office of Public Affairs and the intended use was to transform former Fire Station 45 into a community multipurpose cultural center to contribute to the recent infusion of art into downtown for the Clearwater community. The LOI states that the Church intends to donate the operating costs for the center and work in coordination with a non-profit to run the facility with marketing and day-to-day operation of the center being done by the non-profit. CRA staff recommends that the city retain the site until such time that decisions related to municipal offices, PSTA’s Park Street Station, and Imagine Clearwater are made, which will likely clarify the best use of this site in the future. CRA staff also recommends that the City moving forward with demolition of the site. Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6143 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: City Manager Verbal Report In Control: Council Work Session Agenda Number: 12.2 SUBJECT/RECOMMENDATION: Imagine Clearwater SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6200 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Council Discussion Item In Control: Council Work Session Agenda Number: 14.1 SUBJECT/RECOMMENDATION: Parking Study Results - Councilmember Allbritton SUMMARY: Staff will provide a presentation as part of the discussion item. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 1 City of Clearwater Printed on 5/10/2019 City Council Workshop(5/8/2019) Purpose• The parking study was the first step in the process of creating a strategic approach to parking within Downtown• After the document was finalized there were some errors identified that need to be corrected, which are being done so now, consultant will give a full detailed report when those are completed• Intent is to move forward with a Strategic Downtown Parking Plan which clearly identifies out a plan for implementation Parking OutlookPublic parking surplus (deficit)within the Downtown Core• Corrections to the report may effect this information• 1,263 Unreserved public parking spaces from 8 AM to 6 PM during the week Next StepsCorrected report and detailed presentation by consultant• June 2019 Wayfinding• CRA has funded a Wayfinding program and the project is with Engineering for Implementation. Parking Supply Additions• Joint Use Facility Discussion – July 2019• PSTA Multi-Modal Site Discussion – Estimated September 2019Strategic Downtown Parking Plan• Fall 2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-5979 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Presentation(s) for Council Meeting In Control: Council Work Session Agenda Number: 18.1 SUBJECT/RECOMMENDATION: National Garden Week Proclamation - Anne Fogarty France, President of the Clearwater Garden Club SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-5980 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Presentation(s) for Council Meeting In Control: Council Work Session Agenda Number: 18.2 SUBJECT/RECOMMENDATION: American Legion Poppy Days Proclamation - Gigi Janesik, American Legion Auxiliary SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6144 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Presentation(s) for Council Meeting In Control: Council Work Session Agenda Number: 18.3 SUBJECT/RECOMMENDATION: Safe Boating Week Proclamation - Ed Chesney, Marine and Aviation Director SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6164 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Presentation(s) for Council Meeting In Control: Council Work Session Agenda Number: 18.4 SUBJECT/RECOMMENDATION: Older Americans Month Proclamation SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 5/10/2019 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#19-6177 Agenda Date: 5/13/2019 Status: Agenda ReadyVersion: 1 File Type: Presentation(s) for Council Meeting In Control: Council Work Session Agenda Number: 18.5 SUBJECT/RECOMMENDATION: Emergency Medical Services Week Proclamation SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 5/10/2019