City of Fort Myers, Florida
Comprehensive Annual Financial Report
Fiscal Year Ended September 30, 2014
Fort Myers Country Club
Designed by the late Donald Ross in 1916, the Fort Myers Country Club opened in
1917 and it is one of the oldest facilities on the west coast of Florida. After nearly
100 years, the City began an intensive six-month renovation in April 2014 and the
golf course reopened for play on November 1, 2014.
Photo by Eloise Pennington, ITS Department
City of Fort Myers, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended
September 30, 2014
Prepared by the Department of Financial Services
Division of Accounting
Director of Finance
Maria Joyner
City of Fort Myers, Florida
Elected Officials as of February 13, 2015
Randall Henderson Jr., Mayor
Teresa Watkins Brown,
Ward 1
Johnny W. Streets Jr.
Ward 2
Levon Simms,
Ward 3
Michael A. Flanders,
Ward 4
Forrest Banks,
Ward 5
Thomas Leonardo,
Mayor Pro Tem, Ward 6
CITY OF FORT MYERS
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2014
TABLE OF CONTENTS
Introductory Section
Letter of Transmittal .................................................................................................................................... i
Certificate of Achievement for Excellence in Financial Reporting ............................................................... ix
Organizational Chart ................................................................................................................................... x
Financial Section
Independent Auditor’s Report ..................................................................................................................... 1
Management’s Discussion and Analysis ..................................................................................................... 4
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position .................................................................................................................... 17
Statement of Activities ......................................................................................................................... 19
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ..............................................................................................................................
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net
Position .....................................................................................................................................
Statement of Revenues, Expenditures, and Changes in Fund Balances .....................................
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities...............................................
20
23
24
26
Proprietary Fund Financial Statements:
Statement of Net Position ............................................................................................................. 27
Statement of Revenues, Expenses, and Changes in Net Position ............................................... 28
Statement of Cash Flows ............................................................................................................. 29
Fiduciary Fund Financial Statements:
Statement of Net Position –Trust and Agency Funds ................................................................... 30
Statement of Changes in Net Position – Pension Trust Funds ..................................................... 31
Notes to the Financial Statements .............................................................................................................. 32
Required Supplementary Information Other than Management’s Discussion & Analysis
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
General Fund .......................................................................................................................................
Notes to Required Supplementary Information ...........................................................................................
Employees’ Pension Schedules:
Schedule of Funding Progress ............................................................................................................
Schedule of Changes in Net Pension Liability and Related Ratios ......................................................
Schedule of Contributions....................................................................................................................
Notes to Required Supplementary Information ....................................................................................
Schedule of Investment Returns ..........................................................................................................
Schedule of Funding Progress – Other Postemployment Benefits Plan ..............................................
90
91
92
93
95
95
98
99
Combining and Individual Fund Statements and Schedules
Major Governmental Fund:
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Revenue Bonds and Notes ........................................................................................................... 103
Nonmajor Governmental Funds:
Combining Balance Sheet Nonmajor Governmental Funds ................................................................ 106
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................... 110
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Law Enforcement Trust Fund ....................................................................................................... 114
Federal Forfeiture Fund ................................................................................................................ 115
FEMA Disaster Grant ................................................................................................................... 116
Grants ........................................................................................................................................... 117
Special Assessment Geographical Area Administration ............................................................... 118
Police Training Fund..................................................................................................................... 119
Street Light Maintenance Fund..................................................................................................... 120
Street Maintenance Fund ............................................................................................................. 121
Winkler Safe Neighborhood Fund................................................................................................. 122
Public Art Fund ............................................................................................................................. 123
Law Enforcement Equipment Fund .............................................................................................. 124
Attainable Workforce Housing Fund ............................................................................................. 125
Hurricane Shelter Fund ................................................................................................................ 126
Public-Private Parking Fund ......................................................................................................... 127
East Riverside Community Center Fund ...................................................................................... 128
Para -Transit Fund........................................................................................................................ 129
Patrons of the Palms Fund ........................................................................................................... 130
State Housing Initiative Partnership Program (SHIP) ................................................................... 131
Community Redevelopment Agency ............................................................................................ 132
Community Development Block Grant.......................................................................................... 133
Crime Prevention Fund ................................................................................................................. 134
Nonmajor Enterprise Funds:
Combining Statement of Net Position .................................................................................................. 136
Combining Statement of Revenues, Expenses and Changes in Net Position ..................................... 138
Combining Statement of Cash Flows................................................................................................... 140
Internal Service Funds:
Combining Statement of Net Position .................................................................................................. 144
Combining Statement of Revenues, Expenses and Changes in Net Position ..................................... 145
Combining Statement of Cash Flows................................................................................................... 146
Fiduciary Funds:
Combining Statement of Changes in Assets and Liabilities – Agency Funds ...................................... 148
Capital Assets Used in the Operation of Governmental Funds:
Comparative Schedule by Source ....................................................................................................... 150
Schedule by Function and Activity ....................................................................................................... 151
Schedules of Changes by Function and Activity .................................................................................. 153
Statistical Section
Financial Trends:
Schedule 1 – Net Position by Component ........................................................................................... 156
Schedule 2 – Changes in Net Position ................................................................................................ 158
Schedule 3 – Fund Balances of Governmental Funds......................................................................... 160
Schedule 4 – Changes in Fund Balances of Governmental Funds ..................................................... 162
Revenue Capacity:
Schedule 5 – Assessed Value and Estimated Actual Value of Taxable Property ................................ 164
Schedule 6 – Property Tax Rates – Direct and Overlapping Governments ......................................... 164
Schedule 7 – Principal Property Taxpayers ......................................................................................... 165
Schedule 8 – Property Tax Levies and Collections.............................................................................. 166
Schedule 9 – Water Sold by Type of Customer and Wastewater Billed by Type of Customer ............ 167
Statistical Section (continued)
Debt Capacity:
Schedule 10 – Ratio of Outstanding Debt by Type .............................................................................. 168
Schedule 11 – Direct and Overlapping Governmental Activities Debt ................................................. 168
Schedule 12 – General Revenue Bonds – Pledged Revenue Coverage ............................................. 170
Schedule 13 – Water-Wastewater Utility – Pledged Revenue Coverage............................................. 172
Demographic and Economic Information:
Schedule 14 – Demographic and Economic Statistics......................................................................... 174
Schedule 15 – Principal Employers ..................................................................................................... 175
Operating Information:
Schedule 16 – Full-Time Equivalent Government – Employees by Function/Program ........................ 175
Schedule 17 – Operations Indicators by Function/Program................................................................. 176
Schedule 18 – Capital Assets Statistics by Function ........................................................................... 177
Single Audit Report
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ............................................................................................................ 179
Schedule of Expenditures of Federal Awards ............................................................................................. 181
Schedule of Expenditures of State Financial Assistance ............................................................................ 183
Independent Auditor’s Report on Compliance For Each Major Program and on Internal Control
Over Compliance Required by OMB Circular A-133 and Chapter 10.550, Rules of the
Auditor General of the State of Florida .................................................................................................. 184
Schedule of Findings and Questioned Costs .............................................................................................. 186
Management Letter
Independent Auditor’s Management Letter ................................................................................................. 189
Independent Accountant’s Report............................................................................................................... 191
Introductory Section
City of Fort Myers, Florida
FINANCIAL SERVICES ADMINISTRATION
PO Box 2217
Fort Myers, Florida 33902-2217
(239) 321-7147
February 13, 2015
Mayor Randall P. Henderson, Jr.
Mayor Pro-Tem Thomas Leonardo
Council Member Teresa Watkins Brown
Council Member Johnny W. Streets, Jr.
Council Member Levon Simms
Council Member Michael A. Flanders
Council Member Forrest Banks
Citizens of the City of Fort Myers
To the Honorable Mayor, City Council Members and Citizens of Fort Myers:
We are pleased to present to you the Comprehensive Annual Financial Report (CAFR) of the City of Fort
Myers, Florida (City) for the fiscal year ended September 30, 2014. State statutes require that a complete
set of financial statements, presented in conformance with accounting principles generally accepted in the
United States (GAAP), be audited by licensed, independent certified public accountants in accordance
with auditing standards generally accepted in the United States and Government Auditing Standards
within nine months after the end of the fiscal year. This report is published to fulfill those statutory
requirements. Certain bond covenants require that this report be issued within 180 days of the City’s fiscal
year end.
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation,
including all disclosures, rests with the management of the City. We believe the data, as presented, is
accurate in all material aspects and is presented in a manner designed to fairly set forth the financial
position and results of operations of the City on a government-wide and fund basis. All disclosures
necessary to ensure the reader gains an understanding of the City’s financial activities have been
included.
Management of the City is responsible for establishing and maintaining internal controls designed to
ensure that the assets of the City are protected from loss, theft or misuse and to ensure that sufficient,
reliable, adequate accounting data is compiled for the preparation of financial statements in conformity
with accounting principles generally accepted in the United States. Internal accounting controls have been
designed to provide reasonable rather than absolute assurance that the financial statements will be free
from material misstatement. The concept of reasonable assurance recognizes that (1) the cost of a
control should not exceed the benefits likely to be derived and (2) the evaluation of costs and benefits
requires estimates and judgments by management. We believe that the City’s internal controls
adequately safeguard assets and provide reasonable assurance of properly recorded financial
transactions.
In compliance with the laws of the State of Florida, the City’s financial statements have been audited by
Mayer Hoffman McCann P.C., a firm of licensed, certified public accountants. The independent auditor
issued an unqualified opinion that the City’s financial statements for the fiscal year ended September 30,
2014 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the
first component of the financial section of this report.
i
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and
provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A
complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE CITY
Fort Myers, incorporated in 1886, is the oldest city in Lee County and serves as the county seat. Fort
Myers is located on the lower west coast of Florida, midway between Tampa and Miami, and has a current
population of approximately 69,413 residents. The City encompasses 48.82 total square miles, including
waterways, and is bordered to the north and west by the Caloosahatchee River, which is part of the
intercoastal waterway connecting the Atlantic Ocean and the Gulf of Mexico.
The City operates under a council-manager form of government. Policy-making and legislative authority
are vested in the governing council (Council) consisting of the mayor and six other members. The Mayor
is elected at large, with one vote and no veto authority, and the six council members are elected by their
respective wards. Council members serve four-year terms, with three members elected every two years.
The Mayor is elected for a four-year term. The City Council is responsible for all policy-making functions
of the government. The City Manager is responsible for the administration of the City.
Municipal services provided to the citizens of Fort Myers include law enforcement, fire protection,
community planning and development, traffic engineering, road and drainage construction and
maintenance, parks and recreational activities/facilities, parking management, code enforcement and
inspections, a cemetery, and other general governmental administrative services. The City also operates
a utility system (including potable and reuse water and wastewater), solid waste services, building permits
and inspections, stormwater management, golf courses, a yacht basin, an event center, parking garages,
a skatium, historical homes and museum, and a hands-on children's science center. These additional
operations are reported as enterprise funds that are intended to be, in most cases, self-supporting from
user charges established by the City Council.
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The City is also financially accountable for the Community Redevelopment Agency of Fort Myers, which is
included in the City’s reporting entity and financial statements. Additional information on this legally
separate entity can be found in the notes to the financial statements (see Note 1, 2.)
The City Council is required to adopt a final budget no later than the close of the preceding fiscal year to
which the budget applies. The annual budget serves as the foundation for the City’s financial planning
and control. The budget is prepared by fund, department (e.g. Public Works), and division (e.g.
Recreation). In accordance with the City’s Budget Policy, the City Manager, Director of Finance and the
Budget Manager have the authority to approve the transfer of funds within a department, within a fund, at
will. In most cases, divisions are required to transfer funds only to meet unanticipated needs or to reflect
organizational changes.
LOCAL ECONOMY
The City of Fort Myers is part of the Fort Myers-Cape Coral Metropolitan Statistical Area (MSA), which
includes all of Lee County. The general concept of a metropolitan statistical area is one of a large
population nucleus, together with adjacent communities that have a high degree of economic and social
integration within that nucleus. Fort Myers is the cultural and trade center for Lee County and the
surrounding area. Commercial fishing in Lee County is a year-round operation with shrimp fleets making
their homeports in Fort Myers and Fort Myers Beach. For recreation, the Thomas Edison and Henry Ford
Winter Estates offer tours of their exhibits including a museum, botanical gardens and research
laboratory. The Barbara B. Mann Performing Arts Hall, located on the campus of Edison State College,
operates year round and provides opportunities to see traveling artist and Broadway productions. A stateof-the-art training ballpark and player development complex became the new home to the Boston Red
Sox in 2012.
Prior to the great recession, Fort Myers experienced rapid growth with strong residential appreciation and
commercial construction. The effects of the great recession, which began in December 2007, caused the
City to lose $3.0 billion, or 42 percent of its tax base between the fiscal years of 2009 and 2013. However,
the Lee County Property Appraiser’s report of certified taxable values released on July 1, 2014 indicated
an overall increase in valuation of 9.2 percent, adding $386,332,396 to the City’s tax base from
$4,200,257,846 to $4,586,590,242. New construction contributed $151,977,621, or 3.6 percent, to the
increase along with existing property values increasing 5.6%. The increases support the nationwide
trends of a recovering real estate market.
Improvements in the national economy and the housing markets are important factors to Southwest
Florida since they impact the timing and level of households moving to the region. Due to the City’s
desirable location near the Gulf of Mexico and speculative construction, the City’s population grew 13
percent to 68,819 in 2009 compared to 61,412 in 2005. Consistent with national and statewide trends,
local economic conditions weakened considerably as the City experienced the effects of the economic
downturn and the City’s population deteriorated to 62,298 in 2010. Solid job growth, declining
unemployment and stronger consumer confidence augment the recent increase in the City’s population,
currently at a peak of 69,413 for 2014. While this increase is not as rapid as past years, the City is
growing quickly: from 2010 to 2014, the City grew 11.4 percent compared to a national average of 3.1
percent.
Rapid population growth means a high share of the economy is related to construction, and that means
the economy is very sensitive to declines in population growth. After reaching a high of 11.2 percent in
September 2010, the City’s unemployment rate as of September 2014 was 5.7 percent compared to 5.9
percent nationally. The housing market continues its resurgence and the construction industry is expected
to create more jobs than any other industry. Despite the massive numbers of foreclosure homes for sale,
builders managed to find increasing numbers of buyers and activity for housing starts rebounded. For
regional employment markets, the Florida TaxWatch Economic Preview for January 2015 reported that
the Fort Myers-Cape Coral MSA is expected to have the most vibrant employment market in the first
quarter of 2015, in comparison to 99 other MSAs across the nation.
iii
During the past ten years, the City’s expenditures related to public safety experienced the greatest
increase, not only in amount but also as a percentage of total expenditures in governmental funds
(currently 51.2 percent, reflecting a ten-year increase of 20.4 percent). A major contributor to this increase
is the salaries and benefits for police and firefighters escalating at a faster rate than for the City’s general
employees. The City successfully negotiated pension reform packages with the three City Pension Plan
boards in the past two years, and the fiscal year 2015 budget incorporates Police pension reform savings
of $800,000.
During the same ten-year period, taxes related to governmental funds increased not only in amount, but
also as a percentage of total revenues in governmental funds (currently 64.7 percent, reflecting a ten-year
increase of 16.8 percent). While the City recognized increases in taxable value as a result of expansion
and redevelopment efforts within the City, the decline in valuation during the great recession impacted the
City’s available resources as the City adjusted its millage rate to supplement decreases in other revenue
sources, such as grants, which declined 11.4 percent over the last ten years as a percentage of total
revenues in governmental funds.
LONG-TERM FINANCIAL PLANNING
In accordance with the City’s fund balance policy, the City will strive to maintain a minimum unassigned
fund balance of 10% with an ultimate goal of 10% - 17% of the total General Fund budget. Unrestricted
fund balance (the total of the committed, assigned, and unassigned components of fund balance) in the
General Fund at year end was 20.6% of total General Fund revenues while unassigned fund balance was
17.4% of revenues. The unassigned fund balance slightly exceeds the maximum requirement of the goal
set by the City Council for budgetary and planning purposes.
The City Council takes the responsibility of being stewards of the public’s funds very seriously. In fiscal
year 2010, City Council identified a series of goals and objectives as part of the development and
implementation of the City’s comprehensive Strategic Plan, and the goal of fiscal accountability was
considered a high level priority. The objectives for fiscal accountability comprise the exploration of options
for balancing the City’s budget and the development of a long term financial plan. Without strong financial
planning, a local government cannot guarantee services and programs, plan for unforeseen events, or
have a strong return on investment.
Strategic Plan
The purpose of every government is to provide public safety, public services, and an enhanced community
environment for its citizens. The City continuously strives to provide the services citizens, business
owners and visitors demand. In February 2013, City Council developed a new Strategic Plan, with a
revised Mission Statement, that ensures the organization’s sustainability for the future. The Strategic Plan
places further emphasis on fiscal management. The Mission of the City of Fort Myers is to be financially
responsible, and to be a leader in municipal services, with a dedicated City workforce, and an involved
community.
The new Strategic Planning Model for the City incorporates the following criteria:
•
•
•
•
•
Vision ~ value-based principles that describe the preferred future in fifteen years.
Plan ~ strategic goals that focus outcome-based objectives and potential actions for five years.
Execution ~ focus for one year – a work program: policy agenda for Mayor and City Council,
management agenda for staff; major projects.
Mission ~ principles that define the responsibility of City government and frame the primary
services – core service businesses.
Core beliefs ~ personal values that define performance standards and expectations for
employees.
iv
To support the new Strategic Plan, goals for the next five years comprise a financially sound city that
provides exceptional municipal services; safe and livable neighborhoods; economic prosperity and a
growing economy, and; a vibrant downtown on the river. The Strategic Plan complements the City’s 2010
Downtown Development Plan, which integrates the existing historic downtown area with a strategy to
develop the neighboring riverfront and create a cultural destination.
As part of the City’s vision for opportunities for a relaxed life style, the City completed a major renovation
of the Fort Myers Country Club in October 2014. Designed by the great Donald Ross in 1916 and opened
in 1917, the Club is one of the oldest facilities on the west coast of Florida, set in the heart of the city.
With a renovation cost of approximately $5.7 million, the project comprised improvements to the turf
conditions, drainage through an intricate water management system and enhanced aesthetics for both
residents and visitors to the area.
Using federal Neighborhood Stabilization Program (NSP) funds, the City is successfully revitalizing
neighborhoods by purchasing abandoned/foreclosed homes in target areas, rehabilitating and reselling
them, and by building homes on city-acquired vacant lots that meet Florida Green and Energy STAR
certification standards. This Program is part of the national effort to restore homes and renew
neighborhoods affected the hardest by the housing crisis. In addition, funds for the repairs and
rehabilitation of housing are available from both of the Community Development Block Grant and State
Housing Initiative Partnership (SHIP) programs.
The City’s business base continues to rebound as a result of the recovering economy and restoration of
the downtown waterfront. The City works with fledgling businesses by providing a business incubator, the
Southwest Florida Enterprise Center. This center provides space at very favorable rates and business
classes to assist new entrepreneurs in starting up their businesses. The City partners with Florida Gulf
Coast University to provide classes and assistance.
Comprehensive Plan
Under the Local Government Comprehensive Planning and Land Development Regulation Act passed by
the Florida Legislature in 1985, and amended in 1986, local governments are required to prepare a
comprehensive plan as a definitive guide for their growth management. The goals, objectives and policies
of the City’s Comprehensive Plan were developed during the planning process to guide the community
and provide clear direction to elected officials, City staff and citizens on certain day to day activities as well
as the future vision of the City.
One of the requirements of the City’s Comprehensive Plan is the provision of authority to the City’s land
development regulations, including the adopted Capital Improvement Program. The City’s annual budget
process includes the preparation of the five-year Capital Improvement Program, which typically includes
the construction of infrastructure and municipal facilities as well as the acquisition of large or specialized
equipment. The capital planning process is critical to the City’s well-being because it provides the
opportunity to take a planned and programmed approach to allocating financial resources in the most
responsive and efficient manner. As part of the planning process, the City identifies and quantifies the
operational costs associated with the capital projects and budgets resources in its operating budget
accordingly.
The City’s Capital Improvement Program comprises seven categories for capital projects. The largest
category of capital spending is Utilities, which includes improvement and replacement of water/sewer
infrastructure and necessary regulatory equipment replacement and maintenance.
For fiscal years 2015 through 2019, the City adopted the following five-year program:
v
Utilities
Transportation
Buildings
Equipment
Stormwater
Development
Parks and Beautification
Total
$
$
158,446,072
13,667,164
12,650,750
8,593,158
5,072,000
950,000
605,000
199,984,144
The Capital Budget is the first year of the Capital Improvement Program and includes a list of projects to
implement in that fiscal year. The fiscal year 2015 Capital Budget anticipates $54.9 million in capital
projects, which comprises $33.9 million in Utilities improvements and replacements, $5.6 million for
Transportation projects, $4.4 million for Equipment purchases, $1.0 million for Stormwater improvements
and maintenance, $0.2 million in Parks and Beautification landscape improvements and enhancements to
City recreation facilities, $9.7 million to Buildings purchases and improvements, and $.1 million to
Development for the improvements to neighborhoods and commercial business areas.
Major projects included in the Capital Budget for fiscal year 2015 comprise $6.4 million for various
neighborhood utility improvements, $9.1 million for the renovation of the Harborside Event Center, and
$5.8 million for utility replacements along US 41. Funding these projects reflects the City’s commitment to
meeting the standards set forth in its Comprehensive Plan and positively impact the quality of life for its
residents, businesses and visitors.
RELEVANT FINANCIAL POLICIES
The City has established guidelines that set forth the basic framework for the overall fiscal management of
the City. With the development and implementation of the Strategic Plan, City management follows
policies and procedures that further the growth and financial security of the City. Operating independently
of changing circumstances and conditions, the financial policies guide the decision-making process of the
City Manager, Mayor, City Council and Administration. These policies provide guidelines for evaluating
both current activities and future programs.
Any downward trends in the State and/or local economy will adversely impact the City’s ability to realize its
budgeted revenues in the categories of franchise fees, utility taxes and state-shared revenues. Therefore,
with quarterly monitoring and conservatism, the City mitigates any unforeseen circumstances.
Complementing this practice is one in which a certain amount of expenses/expenditures are frozen and
are not released for use until it is clear that revenues will be at projected levels.
The City formally adopted a debt management policy during fiscal year 2008. There are no legal debt
limits placed on the City through state law (no such limit exists in Florida), local ordinances or local
resolutions. The City continually pursues ways to limit debt and improve its overall financial position.
These actions include such measures as:
•
•
•
•
Limiting future capital spending projects and minimizing the issuance of additional debt.
Taking advantage of refunding opportunities, if any arise, to decrease future annual debt service
requirements.
Restructuring existing debt, where legally possible, to remove the City's backup pledge on debt
that benefits specific districts where sufficient revenues are available from those districts to repay
the debt.
Committing proceeds from the sale or other disposal of any assets financed by debt to the
prepayment or early payoff of the related debt.
The City does not issue debt, long or short term, to finance operational costs.
vi
While the City does not have any general obligation debt, certain underlying and implied ratings have been
given to the City by the ratings companies. During the issuance of the City of Fort Myers, FL, Capital
Improvement and Refunding Revenue Bonds, Series 2014, Moody’s Investors Service reviewed and
assigned a rating of A1 as of June 5, 2014.
Fitch Ratings affirmed an A+ rating on July 22, 2014 for the City’s utility system refunding revenue bonds,
Series 2006, 2011 and 2012. Key rating drivers incorporated a highly leveraged system balanced by
adequate coverage and healthy liquidity.
On February 5, 2014, Fitch Ratings affirmed ratings on the City’s improvement revenue bonds at AA- with
a negative rating outlook. The negative outlook reflected Fitch’s concern about the City’s financial profile
and the pressures posed by rising pension costs.
MAJOR INITIATIVES
The fiscal year 2015 budget balances community and organizational needs with recurring operating
revenues and produces reserves in accordance with City policies. Revenues, while increasing, still fall
short in fully supporting operational expenditures. This fiscal gap existed for the past several years and
the City reduced expenditures, increased the millage rate and other user fees, and used available
reserves. Continued spending restraint will avoid further service cuts, prevent reserves from falling below
prescribed levels, and ensure the delivery of City services for fiscal year 2015 and into the future.
Initiatives to maintain stable service levels for core municipal services, such as police, fire and public
works, and maintain City reserves within their current range during fiscal year 2015 include:
•
•
•
Frozen funding for twenty-one vacant positions for a savings of $1.4 million while eliminating
furloughs for General union and non-union employees, which equates to a 2.0% increase in
annual salaries and returns resources for City service delivery.
Pension reform measures for the Police Officers’ Retirement System to ensure that future
retirement benefits are available to employees and to control the City’s costs to assist in aligning
operating expenditures with revenues, for a savings of $54 million over 30 years.
A 4% rate increase for water and sewer services to alleviate future borrowing needs to fund utility
capital improvement projects. Adjustments to the utility rate structure will achieve a more fair and
equitable system for users of utility services.
On December 1, 2014, City Council approved the development of a 225 room Sheraton Hotel with a 210
car parking garage to be constructed on the parking lot adjacent to the Harborside Event Center. The
hotel will be constructed privately by Western Nation Capital Partners from California. The parking garage
will be constructed, owned and operated by the City as a public parking facility. Construction is expected
to begin by the fall of 2015 and the estimated total project cost is $57 million. As part of the development
project, the City will be responsible for renovating the Harborside Event Center in the amount of
approximately $9.1 million, which will be financed by the issuance of revenue bonds. Debt service on the
bonds will be funded by a grant of $4 million from Lee County through an interlocal agreement. The
project is the next phase in the City’s 2010 Downtown Plan and it will contribute towards City Council’s
goal for a vibrant downtown on the Caloosahatchee River.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Fort Myers for its
comprehensive annual financial report for the fiscal year ended September 30, 2013. The Certificate of
Achievement is a prestigious national award recognizing conformance with the highest standards for the
preparation of state and local government financial reports.
vii
In order to be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program
standards. This report must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of
Achievement for the last twenty-five consecutive years. We believe that our current comprehensive
annual financial report continues to meet the Certificate of Achievement Program’s requirements and we
are submitting it to the GFOA to determine its eligibility for another certificate.
The City of Fort Myers has also received the GFOA’s Distinguished Budget Presentation Award for the
last twenty-three consecutive years. The Distinguished Budget Presentation Award is the highest form of
recognition in governmental budgeting, and its attainment represents a significant accomplishment by a
government and its management. In order to receive this award, a government unit must publish a budget
document that meets program criteria as a policy document, an operations guide, a financial plan and a
communication device. The award is the budgetary counterpart of the Certificate of Achievement and is
valid for one year only.
ACKNOWLEDGMENTS
The preparation of this Comprehensive Annual Financial Report was made possible through the
cooperation and teamwork of the entire Accounting Division of the Finance Department. Their continuing
effort toward improving the accounting and financial reporting systems improves the quality of information
reported to the City Council, State and Federal Agencies, and the citizens and investors in the City of Fort
Myers. We sincerely appreciate and commend them for their contributions.
Appreciation is also extended to our external auditors, Mayer Hoffman McCann P.C., for their assistance
and to the Mayor and City Council Members for the vital role they have played in enabling the City to
remain fiscally responsible to the citizens of Fort Myers.
Sincerely,
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
William P. Mitchell
City Manager
Maria Joyner
Director of Finance
viii
ix
CITY OF FORT MYERS
Organizational Chart
As of September 30, 2014
Residents of Fort Myers
City Council as of Board of
Commissioners of the
Community Redevelopment
Agency
Elected Officials
Downtown Redevelopment Area
Donald Paight
Executive Director
City Attorney
Grant W. Alley
Other Redevelopment Areas
Cleveland Avenue, Central Fort
Myers, Martin Luther King, Velasco
Village, East Fort Myers, Eastwood
Village and Dunbar-Michigan
Redevelopment Areas
Assistant City Manager
Marvin Collins
City Manager
William P. Mitchell
Financial Services
Maria Joyner
Director
Human Resources
Christine McDade
Director
Community Development
Robert Gardner
Director
Police
Douglas E. Baker
Chief
Fire
Kenneth D. Dobson
Chief
Public Works
Saeed Kazemi
Director
Information Technology Services
Jimmy R. Barfield
Director
City Clerk
Marie Adams
x
Financial Section
Mayer Hoffman McCann P.C.
An Independent CPA Firm
13577 Feather Sound Drive, Suite 400  Clearwater, Florida 33762
Main: 727.572.1400  Fax: 727.571.1933  www.mhm-pc.com
Independent Auditor’s Report
Honorable Mayor and City Council
City of Fort Myers
Fort Myers, Florida:
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 Fort Myers,
Florida (the “City”) as of and for the year ended September 30, 2014, 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 balance sheet, statement of revenues and expenses and changes in
financial position of the City of Fort Myers, Florida, Community Redevelopment Agency (the “CRA”),
presented in the accompanying combining and individual fund financial statements and schedules as of
and for the year ended September 30, 2014.
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
Member of Kreston International – a global network of independent accounting firms
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, 2014, 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. In addition, in
our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the CRA as of September 30, 2014 and the respective changes in financial
position thereof for the year ended in conformity with accounting principles generally accepted in the
United States of America.
Emphasis of Matter
As described further in Note 24, the City adopted the provisions of Statement of Governmental Auditing
Standards No. 67, Financial Reporting for Pension Plans, for the year ended September 30, 2014. Our
opinion is 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 on pages 4-16, budgetary comparison information for the general fund on page 90
and the Employees’ Pension Plan Schedules on pages 92-99 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual fund
statements and schedules, and statistical section are presented for purposes of additional analysis and are
not a required part of the basic financial statements. The schedule of expenditures of federal awards and
state financial assistance is presented for purposes of additional analysis as required by U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations and Chapter 10.550, Rules of the Auditor General, and is also not a required part of the
basic financial statements.
The combining and individual fund statements and schedules on pages 103-153 and the schedules of
expenditures of federal awards and state financial assistance 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
2
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the combining and individual nonmajor fund financial statements and the schedule of expenditures of
federal awards and state financial assistance are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
The introductory and statistical sections 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 February 13,
2015, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over financial
reporting and compliance.
February 13, 2015
Clearwater, Florida
3
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
As management of the City of Fort Myers (the City), we offer readers of the City’s financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2014. We
encourage readers to consider the information presented here in conjunction with additional information that we have
furnished in our letter of transmittal, which can be found on pages i-viii of this report, and the City’s financial
statements beginning on page 17.
Financial Highlights:
•
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year by $254,616,882 (net position). Of this amount,
$40,950,260 (unrestricted net position) may be used to meet the government’s ongoing obligations to
citizens and creditors.
•
The government’s total net position increased by $2,659,441, which comprises a decrease in governmental
activities of $21,325,320 offset by an increase in business-type activities of $23,984,761. The decrease in
the governmental activities comprises accruals related to developer agreements in addition to rising Police
pension costs and 3% wage restoration for employees. Business-type activities experienced an increase in
net position due to increases in the water and sewer utility rate, capital grants revenue, and transfers from
other funds.
•
At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of
$91,658,196, a decrease of $8,257,790 (8.3%) in comparison with the prior year. Approximately 13.8% of
this amount ($12,612,665) is available for spending at the government’s discretion (unassigned fund
balance).
•
At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned, and
unassigned components of fund balance) for the General Fund was $15,008,849, or 20.2% of total General
Fund expenditures.
•
The City’s total outstanding long-term debt decreased by $5,466,827 (1.5%) during the current fiscal year as
a result of prevailing debt service payments.
Overview of the Financial Statements
The discussion and analysis provided here are intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements comprise three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to financial statements. This report also includes
supplementary information intended to furnish additional detail to support the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide readers
with a broad overview of the City’s finances, in a manner similar to a private sector business.
The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred outflows/inflows
of resources, with the difference reported as net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the government’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items
that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental activities (governmental activities) from other functions that are intended to recover all or
a significant portion of their costs through user fees and charges (business-type activities). The governmental
activities reflects the City’s basic services, including general government, community and economic development,
planning and zoning, police, fire, public works, parks and recreation, and the Community Redevelopment Agency.
The business-type activities of the City include a water and wastewater utility, solid waste collection, building permits
and inspections, stormwater management, golf courses, a yacht basin, an event center, downtown parking garages,
a skatium, historical homes and museum, and a hands-on science education center.
4
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
The government-wide financial statements include not only the City itself (known as the primary government), but
also the Community Redevelopment Agency, a legally separate entity for which the City is financially responsible.
Financial information for this component unit is included in the governmental-type funds as a non-major special
revenue fund.
The government-wide financial statements can be found on pages 17 – 19 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The City, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of
the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources,
as well as on balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand the
long-term impact of the government’s near-term financing decisions. Both the Governmental Funds Balance Sheet
and the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances provide a
reconciliation to the government-wide statements in order to facilitate this comparison between governmental funds
and governmental activities.
The City maintains twenty-five 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 Fund, the Revenue Bonds and Notes Fund, the Transportation Capital
Projects Fund and the General Capital Projects Fund, which are considered to be major funds. Data from the other
twenty-one governmental funds are combined into a single, aggregated presentation titled Other Governmental
Funds. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements in the Combining Statements and Schedules section of this report.
The City adopts an annual appropriated budget for the governmental funds with the exception of the two capital
projects funds, which are budgeted on a project length basis. A budgetary comparison schedule has been provided
for the General Fund and the Revenue Bonds and Notes Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 20 – 26 of this report.
Proprietary funds. The City maintains two different types of proprietary funds: Enterprise Funds and Internal
Service 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 its Water and Wastewater
Utility, Solid Waste Operations, Building Permits and Inspections, Stormwater Management, Fort Myers Country
Club, Eastwood Golf Course, the Yacht Basin, Harborside Event Center, Downtown Parking Garages, Skatium, and
the Department of Cultural and Historic Affairs, which comprises the business activities of the Imaginarium Science
Center, the Burrough’s Home, and the Southwest Florida Museum of History. Internal Service Funds are an
accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses
separate internal service funds to account for its Central Garage Operations, Information Technology Services, Public
Works Warehouse, and Risk Management Program. Because all of these services predominantly benefit
governmental rather than business-type functions, they have been included within governmental activities in the
government-wide financial statements.
Proprietary fund financial statements 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 WaterWastewater Fund and the Solid Waste Fund, both of which are considered to be major funds of the City. The
remaining enterprise funds are combined into a single, aggregated presentation titled “Other Enterprise Funds”. The
internal service funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the nonmajor enterprise funds and the internal service funds are provided in the
form of combining statements in the Combining Statements and Schedules section of this report.
The basic proprietary fund financial statements can be found on pages 27 – 29 of this report.
5
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the
government. Fiduciary funds are not reported in the government-wide financial statements because the resources of
those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much
like that used for proprietary funds.
The City maintains two different types of fiduciary funds: pension trust funds and agency funds. Pension trust funds
are used to report resources held in trust for retirees and beneficiaries covered by each plan. The three pension trust
funds are: 1) the General Employees’ Pension Plan, 2) the Police Officers’ Retirement System, and 3) the Municipal
Firefighters’ Pension Trust Fund. Agency funds report resources held by the City in a custodial capacity for
individuals, private organizations, and other governments. The five agency funds are: 1) the Regional Park Impact
Fee Fund, which accounts for regional park impact fees collected and then sent to Lee County; 2) the Emergency
Medical Services (EMS) Impact Fee Fund, which accounts for the EMS impact fees collected and then sent to Lee
County; 3) the School Board Impact Fee Fund, which accounts for school impact fees collected and then sent to Lee
County; 4) Unclaimed Funds, which accounts for monies that have not been claimed and then sent to the State of
Florida according to State Statutes; and 5) the Employee Special Events Fund, which is accounted for and held by
the City for a committee that provides special events for employees.
The fiduciary fund financial statements can be found on pages 30 and 31 of this report.
Notes to the financial statements. The notes provide additional information that is necessary to acquire a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the financial
statements can be found on pages 32 – 87 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents
required supplementary information concerning the budget to actual data for the General Fund and the City’s
progress in funding its obligation to provide pension and other postemployment benefits (OPEB) to its employees.
Required supplementary information can be found on pages 90 – 99 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise
funds and internal service funds are presented immediately following the required supplementary information on the
budgetary comparison schedule, pensions and OPEB. The combining and individual fund statements and schedules
can be found on pages 106 – 146 of this report.
Government-wide Overall Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. In the
case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by
$254,616,882 at the close of the most recent fiscal year.
The largest portion of the City’s net position (45.8%) reflects its investment in capital assets (e.g., land, buildings,
equipment, vehicles and infrastructure), less any related outstanding debt that was used to acquire those assets.
The City uses these capital assets to provide a variety of services to its citizens. Accordingly, 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 used to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (38.2%) represents resources that are subject to external restrictions
on how they may be used. Restrictions related to capital projects represent 49.1% of the total restricted net position
($97,166,181) and reflects the City’s commitment to providing services and resources to its citizens. The remaining
balance of $40,950,260 is unrestricted and may be used to meet the City’s ongoing obligations to its citizens and
creditors.
Representation of the City’s net position is on the following page.
6
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
City of Fort Myers, Florida
Net Position as of September 30, 2014 and 2013
Current and other
assets
Capital assets
Total assets
$
Deferred outflows of
resources
Governmental Activities
Business-type Activities
2014
2014
2013
125,165,953
148,584,267
273,750,220
$
136,869,723
155,566,585
292,436,308
3,670,889
1,623,088
132,583,003
34,184,754
166,767,757
144,721,924
17,358,800
162,080,724
$
Total
2013
98,735,636
334,873,448
433,609,084
$
427,020
2014
87,267,791
328,643,517
415,911,308
$
449,090
223,901,589
483,457,715
707,359,304
2013
$
224,137,514
484,210,102
708,347,616
4,097,909
2,072,178
402,293,517
52,140,852
454,434,369
422,656,348
33,196,230
455,852,578
2,405,962
2,609,775
116,500,441
97,166,181
40,950,260
254,616,882
112,434,944
99,836,460
39,686,037
251,957,441
Long-term liabilities
outstanding
Other liabilities
Total liabilities
Deferred inflows of
resources
Net position:
Net investment in
capital assets
Restricted
Unrestricted
Total net position $
-
49,609,728
61,743,479
(699,855)
110,653,352
269,710,514
17,956,098
287,666,612
-
$
58,088,422
70,537,585
3,352,665
131,978,672
277,934,424
15,837,430
293,771,854
2,405,962
$
66,890,713
35,422,702
41,650,115
143,963,530
2,609,775
$
54,346,522
29,298,875
36,333,372
119,978,769
$
$
At the end of the current fiscal year, the City reported some fund deficits in the unrestricted category of net position,
both for the government as a whole as well as for some separate governmental and business-type activities. Rising
Police pension costs and a 3% wage restoration for employees depleted unrestricted funds in governmental activities.
The Grants and Community Development Block Grant special revenue funds had fund deficits resulting from
expenditures for which related revenue was not recognized due to the timing of the reimbursements. For businesstype activities, the Fort Myers Country Club enterprise fund had a negative unrestricted net position of $50,491 due to
a decrease in revenues from the closure of operations for five months of renovations. The Skatium enterprise fund
had a negative unrestricted net position of $111,474 due to competition with other recreation opportunities in the area
and an increase in utilities. The Department of Cultural and Historic Affairs had a negative unrestricted net position of
$21,393 due to one-time repair and maintenance issues in the prior fiscal year coupled with revenues not coming in
as planned.
City of Fort Myers, Florida Net Position
September 30, 2013 and 2014
Net investment in capital
assets
2013
Restricted
2014
Unrestricted
0
50,000,000
100,000,000
7
150,000,000
200,000,000
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
City of Fort Myers, Florida
Changes in Net Position
For the Year Ended September 30, 2014 and 2013
Governmental Activities
2014
2013
Revenues:
Program Revenues
Charges for services
Operating grants and
contributions
Capital grants and
contributions
General Revenues
Property taxes
Other taxes
Other
Total revenues
$
9,618,819
$
8,027,562
Business-type Activities
2014
2013
$
90,953,023
$
Total
2014
81,328,223
$
2013
100,571,842
$
89,355,785
4,082,848
5,096,197
933
886
4,083,781
5,097,083
2,767,330
1,279,111
8,647,869
3,383,428
11,415,199
4,662,539
36,692,230
22,976,391
10,133,248
86,270,866
34,988,658
17,841,917
13,643,804
80,877,249
97,115
99,698,940
122,889
84,835,426
36,692,230
22,976,391
10,230,363
185,969,806
34,988,658
17,841,917
13,766,693
165,712,675
Expenses:
General government
Police
Fire
Protective inspections
Physical environment
Transportation
Economic environment
Culture and recreation
Interest
Water-Wastewater
Solid Waste
Permits and Inspections
Stormwater
Golf Courses
Yacht Basin
Harborside Event Center
Downtown Parking Garages
Skatium
Cultural and Historic Affairs
Total expenses
12,200,476
36,183,148
20,189,676
1,448,884
5,754,949
19,957,055
6,199,726
3,759,704
5,118,896
110,812,514
12,167,626
35,492,533
21,255,783
1,428,519
5,094,677
19,528,061
4,183,689
3,501,196
4,981,829
107,633,913
46,061,313
8,878,238
2,836,337
2,802,742
3,251,488
2,816,344
2,004,116
1,039,313
1,223,048
1,584,912
72,497,851
45,188,740
8,668,898
2,339,039
2,676,947
3,192,083
2,625,787
2,026,123
1,067,213
1,218,220
1,684,157
70,687,207
12,200,476
36,183,148
20,189,676
1,448,884
5,754,949
19,957,055
6,199,726
3,759,704
5,118,896
46,061,313
8,878,238
2,836,337
2,802,742
3,251,488
2,816,344
2,004,116
1,039,313
1,223,048
1,584,912
183,310,365
12,167,626
35,492,533
21,255,783
1,428,519
5,094,677
19,528,061
4,183,689
3,501,196
4,981,829
45,188,740
8,668,898
2,339,039
2,676,947
3,192,083
2,625,787
2,026,123
1,067,213
1,218,220
1,684,157
178,321,120
Increase (decrease) in net
position before transfers
(24,541,648)
(26,756,664)
27,201,089
14,148,219
2,659,441
3,216,328
7,646,132
(3,216,328)
(7,646,132)
(21,325,320)
(19,110,532)
Transfers
Increase (decrease) in net
position
Net position – beginning
Net position – ending
$
131,978,672
110,653,352
$
151,089,204
131,978,672
23,984,761
$
119,978,769
143,963,530
-
6,502,087
$
113,476,682
119,978,769
(12,608,445)
-
2,659,441
$
251,957,441
254,616,882
(12,608,445)
$
264,565,886
251,957,441
The City’s overall net position increased $2,659,441 from the prior fiscal year. The reasons for this overall increase
are discussed in the following sections for governmental activities and business-type activities.
Governmental Activities. During the current fiscal year, net position for governmental activities decreased
$21,325,320 from the prior fiscal year for an ending balance of $110,653,352. While the recovering economy
attributed to an increase in revenue collections, expenses continue to surpass revenues due to a 3% wage
restoration for City employees and escalating pension costs for Police and Fire. Also contributing to the overall
decrease were certain accruals related to judgments and developer commitments. A court judgment for a lawsuit in
which the City was a defendant for dispute of payment caused an accrual of $1,760,000, which will be paid in
subsequent fiscal years. In Transportation activities, compliance with a buyback commitment in a developer
agreement resulted in an accrual of $3,000,000 and negotiations about a developer funding agreement caused an
accrual of $5,000,000. In addition, net transfers in Governmental Activities decreased $4,429,804 (58%) due to the
funding of $3,900,000 for the Fort Myers Country Club renovation from the General Capital Projects Fund.
8
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
Expenses and Program Revenues - Governmental Activities
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Revenues
Expenses
Revenues by Source - Governmental Activities
Property Taxes
42.53%
Public Service Taxes
13.20%
Franchise Taxes
6.55%
Local Business Taxes
1.82%
Fuel Taxes
5.12%
Intergovernment
9.69%
Capital Grants and
Contributions
3.21%
Operating Grants and
Contributions
4.73%
Interest
0.21%
Charges for Services
11.15%
Miscellaneous
1.79%
Business-type Activities. For the City’s business-type activities, the results for the current fiscal year were positive
in that overall net position increased to an ending balance of $143,963,530. The total increase in net position for
business-type activities was $23,984,761 or 20.0% from the prior fiscal year. The majority of the growth is
attributable to the 4% increase in the water and sewer utility rate, growth in the utility customer base as well as the
expiration of water and sewer impact fee waivers effective January 1, 2014. As a result, revenues from water and
sewer service charges increased $9,624,800 (11.8%) over the previous year’s amount. Capital grants and
contributions increased $5,264,441 from prior fiscal year as a result from developer donations of utility improvements.
An additional contributor to the overall increase was the interfund transfer of $3,900,000 from the General Capital
Projects Fund for the Fort Myers Country Club renovation.
9
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
10
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
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 discretionary use as they represent the portion of fund balance that has not yet been limited to
use for a particular purpose by either an external party, the City itself, or a group or individual that has been
delegated authority to assign resources for use for particular purposes by City Council.
At September 30, 2014, the City’s governmental funds reported combined fund balances of $91,658,196, a decrease
of $8,257,790 in comparison with the prior year. Approximately 13.8% of this amount, $12,612,665, constitutes
unassigned fund balance, which is available for spending at the City’s discretion. The remainder of the fund balance
is either nonspendable, restricted, committed or assigned to indicate that it is 1) not in spendable form, ($905,621), 2)
legally required to maintain intact, ($2,000), 3) restricted for particular purposes, ($75,719,336), 4) committed for
particular purposes, ($61,662), or 5) assigned for particular purposes, ($2,356,912).
General Fund
Components of Fund Balance
September 30, 2013 and 2014
Unassigned
2013
Assigned
2014
Nonspendable
$0
$5,000,000
$10,000,000
$15,000,000
Other Governmental Funds
Components of Fund Balance
September 30, 2013 and 2014
Unassigned
Assigned
2013
Committed
2014
Restricted
Nonspendable
($100,000)
$19,900,000 $39,900,000 $59,900,000 $79,900,000 $99,900,000
11
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
The General Fund is the primary operating fund of the City. At the end of the current fiscal year, unassigned fund
balance of the General Fund was $12,654,296 while total fund balance decreased to $15,643,466. As a measure of
the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total
fund expenditures. Unassigned fund balance represents 17.0% of total General Fund expenditures, while total fund
balance represents 21.1% of that same amount. It should be noted that the budget for fiscal year 2015-2016
provides for using $372,376 of the assigned fund balance to support General Fund expenditures in that fiscal year.
The fund balance of the City’s General Fund decreased $3,201,103 during the current fiscal year. As discussed
earlier in connection with governmental activities, the decrease relates to pension costs and a 3% wage restoration
for employees, which is exhibited by the increase of $2,867,013 in operating expenditures.
The Revenue Bonds and Notes Fund, a major fund, had a decrease in fund balance during the current year of
$1,644,393 to bring the year end fund balance to $5,620,962. The reduction was a result of spending resources
obtained through the issuance of long-term debt to refund existing debt and to provide financing for the expenditures
of certain capital projects.
The Transportation Capital Projects Fund, a major fund, had a $5,515,939 decrease in fund balance during the
current year. The primary factors for the decrease were accruals for the buyback commitment in a developer
agreement for the amount of $3,000,000 and for the negotiations about a developer funding agreement for the
amount of $5,000,000. The overall decrease was mitigated by a reduction of approximately $2,000,000 in
Transportation capital outlay during the year.
The General Capital Projects Fund, the remaining major governmental fund, had a $4,502,200 increase in fund
balance during the current fiscal year. Proceeds of $10,604,000 from the long-term debt issuance in the current year
were transferred from the Revenue Bonds and Notes Fund to finance the costs of the acquisition, construction and
equipping of certain capital improvements in the General Capital Projects Fund. A portion of those proceeds were
transferred to finance nonmajor business-type funds’ capital projects during the current fiscal year, including the
major renovation at the Fort Myers Country Club.
Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.
Unrestricted net position of the Water-Wastewater Fund at the end of the year amounted to $24,356,547, and total
growth in net position for the year was $16,647,474. As discussed earlier in connection with business-type activities,
the increase primarily results from the increase in the water and sewer activity charges due to customer growth and
the 4% rate increase in the current fiscal year. Miscellaneous revenue increased $2,345,156 due to the surge in
impact fee collections after the water and sewer impact fee waiver program expired on January 1, 2014. In addition,
capital grants and contributions increased $5,315,540, mainly as a result of developer donations of utility
improvements.
Unrestricted net position of the Solid Waste Fund at the end of the year amounted to $7,175,585, and total growth in
net position for the year was $820,719. The increase of $307,036 (2.2%) in revenues results from the anticipated
residential pickup increase due to growth in the tax roll and a combined Roll-Off and Commercial Pickup increase of
$142,134.
Unrestricted net position of the Other Enterprise Funds at the end of the year amounted to $10,117,983 and total
growth in net position for the year was $6,516,568. Charges for services in the Building, Permits and Inspections
Fund increased by $702,687 (24.9%), mainly as a result of the ongoing increase in single-family permits issued for
new construction. The Stormwater Fund revenues increased by $1,194,826 (41.3%) as a result of the collection of
fees as a non-ad valorem assessment, which was previously collected through the utility system. Further, any past
due amounts were added to the current year assessment. Interfund transfers to the Other Enterprise Funds
increased by $5,181,231, mainly due to the funding of the Fort Myers Country Club renovation from the General
Capital Projects Fund.
General Fund Budgetary Highlights
Original budget compared to final budget. During the year, there was no need for any significant amendments to
increase either the original estimated revenues or original budgeted appropriations. In accordance with Florida
Statute 166.241(4), the City makes any necessary amendments to the current fiscal year budget up to sixty days after
the completion of the fiscal year. Year end results generally indicate that some budget adjustments are necessary to
be in compliance with the City’s legal level of control, which is the department level within a fund for budget purposes.
These adjustments may be administrative, where both revenues received and the related expenditures are
12
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
recognized, or where some funds/departments experienced unexpected expenditures and/or revenue shortfalls that
require either the appropriation of reserves or the transfer of funds within the fund.
The most significant adjustments in the fiscal year 2013-2014 budget amendments were as follows:
•
•
An increase of $2,244,132 in General Fund appropriations with funding coming from fund balance or
reserves – Of this amount, $1,650,061 is attributable to re-appropriated funds to complete capital
improvement projects that were approved in prior fiscal years, as the fiscal year 2014 original budget
included only new funding for projects. Other re-appropriated funds include $430,665 for purchase order
encumbrances. Further, during the current fiscal year, appropriations were made for legal fees in the
amount of $100,000 and mortgage assistance for Quality Life Center in the amount of $63,406.
An increase of $1,418,254 in General Fund Revenues and Expenditures for the collection of insurance
premium taxes – The City receives state contributions for the City’s portion of the Fire and Police Insurance
Premium Taxes, in the amounts of $823,071 and $595,183, respectively. The taxes are not budgeted
because the amounts cannot be reasonably estimated.
Final budget compared to actual results. The following revenues and expenditures caused the largest variances
between estimated amounts and actual results:
Budgeted Amounts
Original
Final
REVENUES
Taxes
Permits and fees
Intergovernmental revenue
Charges for services
Miscellaneous
EXPENDITURES
Current:
General Government City Clerk
Financial Services
Human Resources
General Contingencies
$
52,852,200
1,493,000
6,518,000
5,354,000
5,845,060
$
54,270,454
1,543,000
6,518,000
5,361,750
8,125,192
Actual Amounts
(Budgetary Basis)
$
55,788,843
2,012,216
7,111,258
5,685,047
715,725
Variance with
Final Budget
$
1,518,389
469,216
593,258
323,297
(7,409,467)
1,414,500
2,872,200
935,400
(1,480,000)
1,367,100
2,872,200
966,900
(1,282,782)
1,001,609
2,600,452
848,693
-
34,715,560
17,587,600
1,547,600
35,101,531
18,410,671
1,629,194
34,589,098
18,172,051
1,455,396
512,433
238,620
173,798
Physical Environment - Public Works
5,546,300
5,965,846
5,530,652
435,194
OTHER FINANCING SOURCES (USES)
Transfers out:
Debt service transfers out
Capital funding transfers out
(8,755,500)
(338,100)
(8,755,500)
(1,778,692)
(8,455,063)
(1,190,158)
300,437
588,534
Public Safety Police
Fire
Protective Inspections
365,491
271,748
118,207
(1,282,782)
Taxes came in favorable to the budget by $1,518,389 due mainly to better than expected collections in the Utility
Service Tax and Ad Valorem revenues, offset by a decrease in the Communications Service Tax.
Revenues in other categories, including Permits and fees, Intergovernmental revenue and Charges for services, also
came in favorable to the budget due to a recovering economy.
Miscellaneous revenues are $7,409,467 less than budget as the budget amount includes appropriated reserves of
$7,570,192, used strictly for budgeting purposes. The City uses reserves to balance the fiscal year budget and to
complete capital improvement projects and professional services that were unable to be completed in the prior year.
Savings in General Government – City Clerk result from vacant positions, election expense and other operating
expenditures. Savings in Financial Services result from vacant positions and savings in Human Resources result
from unemployment compensation, contract services and professional services.
General contingencies consist mainly of a budgetary account only, the final budget amount of ($1,282,782)
representing annual, projected General Fund expenditure savings.
13
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
Savings in Public Safety – Police result from vacancy savings due to high turnover in personnel. Savings in Fire
result from savings in operating expenditures, including fuel, contract services, operating supplies and repair and
maintenance as well as overtime. Savings in Protective Inspections result from savings in demolitions of unsafe
structures, however since the services were encumbered, the budget was carried over to fiscal year 2015 for
completion.
Savings in Physical Environment – Public Works result from vacancy savings as well as Professional Services for
various engineering services that were budgeted but not able to start or be completed by the end of the fiscal year.
Since the services were planned and encumbered, the budgets were carried over to fiscal year 2015 for completion.
Transfers for debt service came in less than budget as a result of the Capital Improvement and Refunding Revenues
Bonds, Series 2014A and Series 2014B that refunded certain outstanding debt. Transfers for capital improvement
projects were less than anticipated due to projects that were not completed by the end of the fiscal year. The
unspent budget for any project that was incomplete at year end was carried over into fiscal year 2015.
A review of actual expenditures compared to the appropriations in the final budget yields no significant variances. As
discussed earlier, City divisions spent according to or less than their budgets.
Capital Assets and Debt Administration
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of
September 30, 2014 amounts to $483,457,715 (net of accumulated depreciation). This investment in capital assets
includes land, antiques and exhibits, historical buildings, construction in progress, building, improvements (including
utility systems), intangible assets and infrastructure. The total decrease in the City’s investment in capital assets for
the current fiscal year was .2% ($752,387).
City of Fort Myers, Florida
Capital Assets
(net of depreciation)
Governmental
Activities
Land
$
Antiques and exhibits
Intangibles-easements
Buildings
Improvements and
Infrastructure
Utility Systems
Equipment
Intangibles-software
Construction in progress
Total capital assets $
2014
25,385,341
251,871
3,560,054
11,318,159
100,382,851
3,732,048
16,904
3,937,039
148,584,267
$
$
Business-type
Activities
2013
25,384,429
251,871
3,560,054
11,663,953
107,422,732
3,380,542
12,000
3,891,004
155,566,585
$
$
2014
3,788,143
34,146,236
21,426,590
267,178,020
7,059,886
187,410
1,087,163
334,873,448
$
$
2013
3,788,143
37,342,273
13,742,148
262,717,676
6,554,305
183,610
4,315,362
328,643,517
$
$
Total
2014
29,173,484
$
251,871
3,560,054
45,464,395
121,809,441
267,178,020
10,791,934
204,314
5,024,202
483,457,715
$
2013
29,172,572
251,871
3,560,054
49,006,226
121,164,880
262,717,676
9,934,847
195,610
8,206,366
484,210,102
Major capital asset activity during the current fiscal year included the following:
•
•
•
•
•
•
•
Neighborhood utility improvements at a cost of $4,166,386, with significant improvements to the McGregor
Boulevard waterline and Sabal Palm utilities.
Various projects related to street overlay improvements and citywide drainage rehabilitation at a cost of
$1,547,798.
The renovation of the Fort Myers Country Club for a total cost of $5,610,013.
The utilities relocation for State Road 739, Metro Parkway / Winkler Road / Hanson Street at a total cost of
$1,982,884, of which $1,654,090 was construction in progress from prior year.
Replacement of an influent pump at the Central Advanced Wastewater Treatment Plant, $685,229, of which
$68,523 was construction in progress from prior year.
Utility improvements for Carrell Canal for a total cost of $766,740.
Manuels Branch watershed improvements with a total cost of $1,836,929 was completed and available for
use during the current year. Construction in progress from prior years had reached $1,791,580.
Additional information on the City’s capital assets can be found in Note 8 on pages 59 and 60 of this report.
14
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $239,220,001, of
which $134,020,000 was related to the Water-Wastewater Utility. The remaining bonded debt is backed by specified
revenue sources. In addition, the City had $130,021,259 of notes and loans outstanding. Of this amount,
$126,027,029 relates to the City’s Water-Wastewater Utility. The remainder of the City’s long-term obligations
consists of capital leases.
City of Fort Myers, Florida
Bonded Debt and Loans Payable
Governmental Activities
Revenue Bonds
$
Utility Revenue Bonds
Capital Lease
Obligations
Notes and Loans
Total long-term
debt
$
2014
104,570,225
-
$
701,868
3,994,230
109,266,323
2013
100,402,225
-
Business-type Activities
$
588,572
4,515,384
$
105,506,181
2014
629,776
134,020,000
$
126,027,029
$
260,676,805
2013
737,775
137,920,000
Total
$
131,245,999
$
269,903,774
2014
105,200,001
134,020,000
$
701,868
130,021,259
$
369,943,128
2013
101,140,000
137,920,000
588,572
135,761,383
$
375,409,955
The City’s total debt decreased $5,466,827 or 1.5%. The key factors in this decrease were:
•
•
•
The governmental funds revenue bonds increased $4,168,000 (4.2%) due to the issuance of long-term debt
to refinance previously outstanding general obligation bonds reported in governmental activities and to
provide funding for certain capital projects. The City completed the refinancing to take advantage of current
market interest rates and achieved a total net present value savings of $1,420,553, or 5.0% of the refunded
amount.
Business-type debt decreased $9,226,969 (3.4%) due to normal amortization of debt service.
The governmental activities include capital lease obligations, which the City used to finance the acquisition
of certain capital assets for the City’s Fire Department and Police Department. The lease agreements
qualify as capital leases for accounting purposes and therefore, have been recorded at the present value of
the future minimum lease payments as of the inception dates.
Additional information on the City’s long-term debt can be found in Note 15 on pages 78 – 83 of this report and in the
City’s Annual Report to Bondholders, published separately.
Economic Factors and Next Year’s Budgets and Rates
The following economic factors currently affect the City and were considered in developing the 2014-2015 fiscal year
budget.
•
•
•
•
•
•
•
•
•
The City’s unemployment rate for September 30, 2014 is 5.7%, which is an improvement from a rate of 6.7%
a year ago and a positive indicator of the continued recovery from the prolonged economic downturn.
The increase of $386.3 million (9.2%) in the City’s certified taxable property values, with $152.0 million in
new construction and average increases of 5.58% in existing properties, will provide $3.1 million in
additional Ad Valorem revenue.
The gains in property values are evidence that the real estate market is on the road to recovery; however,
revenues, while increasing, still fall short of fully funding operational expenditures.
The City maintained millage rate of 8.7760 to preserve core municipal services and avoid the depletion of
City fiscal reserves.
Several new revenue sources were enacted in the 2014-15 budget year, comprising new General Fund fees
for the STARS Facility, Engineering permit fees, Code Enforcement and Fire Prevention.
Other General Fund revenues, excluding ad valorem revenues, increased over prior year by 6.4%.
A 4 percent increase in the water and sewer utility rate and a new rate structure beginning October 1, 2014,
is expected to generate $1.9 million in revenue to maintain operations and incorporate future borrowing
needs to fund critical utility capital improvement projects over the next several years.
Maintenance of the Solid Waste rates and Stormwater fees.
An increase in rates for Building Permits and Inspections to align fees with staff time spent on activities and
provide additional revenue in the amount of $397,500.
15
CITY OF FORT MYERS, FLORIDA
Management’s Discussion and Analysis
•
•
•
•
•
•
•
On the expenditure side, the City eliminated furloughs for the General union and non-union employees, to
equate to a 2.0% increase in annual salaries and a total cost to the General Fund of $281,500.
Includes a 1 step increase for Fire and Police, to equate to a 1.5% and an average of 3.8% wage increase,
respectively.
Police pension reform measures, representing $800,000 in cost savings and saving the City an estimated
$54.0 million over thirty years.
Continuance of the vacancy of twenty-one positions to capture savings of $1.4 million and control the growth
of recurring costs.
Includes approximately $1.0 million for vehicles, equipment, and computer equipment replacements.
The City continues to purchase property and casualty insurance to ensure adequate coverage in the event
of a natural peril or unforeseen accident claim.
An increase of 3.5% in the City’s population from 67,801 in fiscal year 2013 to 69,413 in the current fiscal
year requires the maintenance of service delivery to the citizens of Fort Myers.
During the current fiscal year, the unassigned fund balance in the general fund was $12,654,295. The City
appropriated $372,376 of this amount for spending in the 2014-2015 fiscal year budget. This action was necessary to
complete certain capital projects and provide services that were unable to be completed by the end of fiscal year
2014 while keeping service levels stable for core municipal services, such as police, fire and public works, and
accommodating equipment and software purchases in fiscal year 2015. The amount of the appropriation is
considerably less than previous years due to City Council’s actions towards their goal of maintaining reserves in
accordance with City Council’s policies and the expectations of municipal credit rating agencies.
Requests for information
The financial report is designed to provide users with a general overview of the City of Fort Myers’ finances.
Questions concerning any of the information provided in this report, or requests for additional financial information,
should be addressed to the Director of Finance, PO Box 2217, Fort Myers, Florida 33902-2217 or telephone (239)
321-7147. You can also access our website at www.cityftmyers.com.
16
Basic Financial Statements
CITY OF FORT MYERS, FLORIDA
Statement of Net Position
September 30, 2014
Primary Government
Business-type
Activities
Governmental
Activities
ASSETS
Cash and cash equivalents
Investments
Accounts receivable, net
Special assessments receivable
Interest receivable
Due from other governments
Inventories
Prepaid items
Deferred special assessments receivable
Notes receivable
Allowance for notes receivable
Assets held for resale
Restricted assets:
Cash and cash equivalents
Investments
Interest receivable
Unamortized bond insurance costs
Capital assets, net:
Non-depreciable
Depreciable
Total Assets
$
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding
Total deferred outflows of resources
LIABILITIES
Accounts and contracts payable
Accrued and other liabilities
Accrued interest payable
Accrued retirement payable
Due to other governments
Unearned revenues
Customer deposits
Due within one year:
Compensated absences
Capital leases payable
Loans and notes payable
Revenue bonds payable
Claims and judgments
Due in more than one year:
Compensated absences
Other postemployment benefits payable
Due to private sources
Capital leases payable
Loans and notes payable
Revenue bonds payable
Accrued contingencies:
Claims and judgments
Total Liabilities
23,341,062
9,965,165
2,875,627
55,068
176,663
3,452,093
660,080
180,069
8,685
5,387,807
(5,387,807)
633,010
$
27,775,649
10,544,589
7,728,520
54,184
5,802,723
460,443
119,162
-
$
51,116,711
20,509,754
10,604,147
55,068
230,847
9,254,816
1,120,523
299,231
8,685
5,387,807
(5,387,807)
633,010
55,274,656
28,196,972
1,896
344,907
32,652,490
13,360,731
18,626
218,519
87,927,146
41,557,703
20,522
563,426
33,134,305
115,449,962
273,750,220
5,062,716
329,810,732
433,609,084
38,197,021
445,260,694
707,359,304
3,670,889
3,670,889
427,020
427,020
4,097,909
4,097,909
2,520,200
12,845,652
1,514,099
15,182,113
454,926
1,266,698
401,066
6,151,253
152,740
4,634,215
166,699
6,851,191
8,671,453
12,998,392
6,148,314
15,182,113
621,625
1,266,698
7,252,257
1,683,207
200,622
521,154
7,348,035
3,170,548
251,579
5,370,867
5,936,965
-
1,934,786
200,622
5,892,021
13,285,000
3,170,548
2,152,551
8,638,821
501,246
3,473,076
101,266,165
621,154
2,815,752
2,832,963
120,656,162
131,225,072
2,773,705
11,454,573
2,832,963
501,246
124,129,238
232,491,237
3,627,578
166,767,757
287,666,612
3,627,578
454,434,369
-
2,405,962
2,405,962
2,405,962
2,405,962
49,609,728
66,890,713
116,500,441
34,732,077
163,808
5,620,962
3,517,564
15,393,894
2,000
671,268
1,641,906
(699,855)
110,653,352
12,973,297
9,940,611
3,144,674
9,337,620
26,500
41,650,115
143,963,530
47,705,374
163,808
15,561,573
3,517,564
18,538,568
2,000
671,268
9,337,620
1,668,406
40,950,260
254,616,882
DEFERRED INFLOWS OF RESOURCES
Deferred charge on refunding
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Capital projects
Culture and recreation
Debt service
Economic environment
Impact fee projects
Public safety: Nonexpendable
Public safety: Expendable
Renewal and replacement
Transportation
Unrestricted
Total Net Position
$
Total
The notes to the financial statements are an integral part of this statement.
17
$
$
18
CITY OF FORT MYERS, FLORIDA
Statement of Activities
For the Year Ended September 30, 2014
Functions / Programs
Primary government:
Governmental activities:
General government
Police
Fire
Protective inspections
Physical environment
Transportation
Economic environment
Culture and recreation
Interest on long-term debt
Total governmental activities
Business-type Activities:
Water-Wastewater
Solid Waste
Building Permits and Inspections
Stormwater
Fort Myers Country Club
Eastwood Golf Course
Yacht Basin
Harborside Event Center
Downtown Parking Garages
Skatium
Dept of Cultural and Historic Affairs
Total business-type activities
Total primary government
Charges for
Services
Expenses
$
12,200,476
36,183,148
20,189,676
1,448,884
5,754,949
19,957,055
6,199,726
3,759,704
5,118,896
110,812,514
$
1,216,087
1,050,970
864,235
1,345,184
3,607,380
173,700
421,141
940,122
9,618,819
46,061,313
8,878,238
2,836,337
2,802,742
1,306,982
1,944,506
2,816,344
2,004,116
1,039,313
1,223,048
1,584,912
72,497,851
60,923,685
14,415,660
3,527,224
3,453,789
1,111,561
1,858,689
2,368,389
769,038
946,170
1,000,120
578,698
90,953,023
$ 183,310,365
$ 100,571,842
Program Revenues
Operating
Grants and
Contributions
$
244,053
2,130,328
589,515
1,118,952
4,082,848
Net (Expense) Revenue and Changes in Net Position
Primary Government
Capital
Grants and
Contributions
Governmental
Activities
Business-type
Activities
$
$
$
933
933
$
4,083,781
8,078,710
105,620
463,539
8,647,869
$
General revenues:
Taxes:
Property taxes
Public service taxes
Fuel taxes
Local business tax
Franchise taxes
Intergovernmental, unrestricted
Interest and investment income
Miscellaneous
Net transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Net position - ending
231,616
358,000
1,871,389
306,325
2,767,330
(10,984,389)
(34,888,125)
(16,963,497)
(103,700)
(1,789,569)
(17,322,451)
(4,659,633)
(2,513,257)
(5,118,896)
(94,343,517)
-
19
$
(10,984,389)
(34,888,125)
(16,963,497)
(103,700)
(1,789,569)
(17,322,451)
(4,659,633)
(2,513,257)
(5,118,896)
(94,343,517)
22,941,082
5,537,422
690,887
756,667
268,118
(85,817)
(447,955)
(1,235,078)
(93,143)
(222,928)
(1,005,281)
27,103,974
22,941,082
5,537,422
690,887
756,667
268,118
(85,817)
(447,955)
(1,235,078)
(93,143)
(222,928)
(1,005,281)
27,103,974
36,692,230
11,390,495
4,372,936
1,566,244
5,646,716
8,358,062
227,329
1,547,857
3,216,328
73,018,197
66,895
30,220
(3,216,328)
(3,119,213)
36,692,230
11,390,495
4,372,936
1,566,244
5,646,716
8,358,062
294,224
1,578,077
69,898,984
(21,325,320)
23,984,761
2,659,441
119,978,769
$ 143,963,530
251,957,441
$ 254,616,882
11,415,199
131,978,672
$ 110,653,352
The notes to the financial statements are an integral part of this statement.
-
Total
CITY OF FORT MYERS, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2014
Revenue Bonds
and Notes
General Fund
ASSETS
Cash and cash equivalents
Investments
Accounts receivable, net
Special assessments receivable
Interest receivable
Due from other funds
Due from other governmental agencies
Prepaid items
Deferred special assessments receivable
Notes receivable
Allowance for notes receivable
Advances to other funds
Assets held for resale
Total assets
LIABILITIES
Accounts and contracts payable
Accrued and other liabilities
Due to other funds
Due to other governmental agencies
Funds held in escrow
Customer deposits
Unearned revenue - other
Advances from other funds
Total liabilities
$
$
$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - occupational licenses
Unavailable revenue - cemetery lot sales
Unavailable revenue - rental income
Unavailable revenue - special assessments
Unavailable revenue - grant receipts
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable:
Advances to other funds
Prepaid items
Asset held for resale
Public safety principal, nonexpendable
Restricted for:
Donations received
CRA
Capital projects
Debt service
Economic environment
Law enforcement programs
Physical environment
Transportation
Committed to:
Law enforcement programs
Assigned to:
Subsequent year's expenditures
Capital projects
Cemetery maintenance
Culture and recreation
Economic environment
Land acquisition
Law enforcement programs
Submerged land lease
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources, and fund balances (deficits)
$
12,484,438
5,040,383
2,771,531
55,068
14,356
549,595
1,648,317
17,617
8,685
617,000
23,206,990
$
772,902
4,496,339
32,253
199,772
401,066
639,055
6,541,387
$
$
Transportation
Capital Projects
5,354,559
281,807
1,896
5,638,262
$
2,300
15,000
17,300
$
$
39,327,767
15,861,310
102,015
351,628
55,642,720
342,591
8,000,000
47,660
66,000
8,456,251
866,294
15,993
139,307
543
1,022,137
-
-
617,000
17,617
-
-
-
-
5,620,962
-
47,186,469
-
-
-
372,376
679,589
660,129
67,092
20,760
363,324
117,025
74,258
12,654,296
15,643,466
5,620,962
47,186,469
23,206,990
$
The notes to financial statements are an integral part of this statement.
20
5,638,262
$
55,642,720
General Capital
Projects
$
$
$
$
Total Nonmajor
Funds
5,844,623
11,765,015
25,976
258,724
17,894,338
$
702,901
258,724
961,625
$
$
Total
Governmental
Funds
4,776,716
1,948,367
102,825
13,909
1,192,802
12,994
5,387,807
(5,387,807)
633,010
8,680,623
$
67,788,103
34,896,882
2,874,356
55,068
158,152
549,595
3,451,471
30,611
8,685
5,387,807
(5,387,807)
617,000
633,010
$ 111,062,933
440,597
14,090
549,595
375,013
408
302,919
617,000
2,299,622
$
2,261,291
12,525,429
549,595
454,926
200,180
401,066
1,266,698
617,000
18,276,185
-
106,415
106,415
866,294
15,993
139,307
543
106,415
1,128,552
-
12,994
258,010
2,000
617,000
30,611
258,010
2,000
16,930,354
-
1,749,909
2,425,513
359,531
308,924
201,599
936,075
1,749,909
2,425,513
16,930,354
5,620,962
359,531
308,924
201,599
48,122,544
-
61,662
61,662
2,359
16,932,713
(41,631)
6,274,586
372,376
681,948
660,129
67,092
20,760
363,324
117,025
74,258
12,612,665
91,658,196
8,680,623
$ 111,062,933
17,894,338
$
21
22
CITY OF FORT MYERS, FLORIDA
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
September 30, 2014
Amounts reported for governmental activities in the statement of net position are different
because:
Total fund balances - governmental funds
$
91,658,196
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds.
147,594,373
Some revenues have been unearned on the balance sheet because they were not
measurable and available at year end.
1,128,552
Long-term liabilities, including revenue bonds payable, are not due and payable in the
current period, and, therefore, are not reported in the funds.
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The assets and liabilities of the internal service funds are included in
governmental activities in the statement of net position.
Net position of governmental activities
(139,390,698)
9,662,929
$ 110,653,352
The notes to financial statements are an integral part of this statement.
23
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2014
Revenue Bonds
and Notes
General Fund
REVENUES
Taxes
Permits and fees
Intergovernmental revenue
Charges for services
Fines and forfeitures
Miscellaneous
Contributions - private source
Total revenues
$
EXPENDITURES
Current:
General government
Police
Fire
Protective inspections
Physical environment
Transportation
Economic environment
Culture and recreation
Debt service:
Principal
Interest
Fiscal charges
Capital outlay:
General government
Fire
Transportation
Economic environment
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Refunding bonds issued
Premium on refunding bonds issued
Payments to bond escrow agent
Total other financing source (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
55,788,843
2,012,216
7,111,258
6,323,264
618,797
1,007,850
8,790
72,871,018
$
3,877
3,877
Transportation
Capital Projects
$
1,830,803
600,718
1,238,037
243,839
1,200
3,914,597
9,926,424
35,455,901
18,172,051
1,455,396
5,530,652
445,696
378,005
2,931,606
-
8,000,000
-
-
7,262,000
4,375,264
513,200
-
74,295,731
12,150,464
1,574,538
9,574,538
(1,424,713)
(12,146,587)
(5,659,941)
12,341,102
(14,117,492)
(1,776,390)
10,144,248
(10,604,000)
39,910,000
1,778,586
(30,726,640)
10,502,194
1,424,046
(1,280,044)
144,002
(3,201,103)
(1,644,393)
(5,515,939)
18,844,569
15,643,466
The notes to financial statements are an integral part of this statement.
24
$
7,265,355
5,620,962
$
52,702,408
47,186,469
General Capital
Projects
$
$
536,732
358,000
41,814
936,546
Total Nonmajor
Funds
$
3,397,204
3,964,986
36,886
664,462
50,429
8,113,967
Total
Governmental
Funds
$
61,016,850
3,149,666
12,672,281
6,323,264
655,683
1,961,842
60,419
85,840,005
-
477,345
1,985,865
3,603,898
3,892,405
-
9,926,424
35,933,246
20,157,916
1,455,396
5,530,652
12,049,594
4,270,410
2,931,606
-
521,154
184,774
-
7,783,154
4,560,038
513,200
888,647
388,286
789,528
19,601
700,879
2,786,941
10,665,441
888,647
388,286
2,364,066
19,601
700,879
109,473,115
(1,850,395)
(2,551,474)
(23,633,110)
11,276,855
(4,924,260)
6,352,595
2,021,671
(1,868,752)
152,919
37,207,922
(32,794,548)
39,910,000
1,778,586
(30,726,640)
15,375,320
4,502,200
(2,398,555)
(8,257,790)
12,430,513
16,932,713
$
8,673,141
6,274,586
$
99,915,986
91,658,196
25
CITY OF FORT MYERS, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2014
Net change in fund balances - total governmental funds
$
(8,257,790)
Amounts reported for governmental activities in the statement of activities are different
because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities, the cost of those assets is allocated over their estimated useful lives as
depreciation expense. This is the amount by which depreciation expense exceeded
capital outlay in the current period.
(7,183,132)
Donations of capital assets increase net position in the statement of activities, but do not
appear in the governmental funds because they are not financial resources.
242,601
Revenues in the statement of activities that do not provide current financial resources are
not reported as revenues in the funds.
(52,472)
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt consumes
the current financial resources of governmental funds. Neither transaction, however, has
any effect on net position. Also, governmental funds report the effect of issuance costs,
premiums, discounts, and similar items when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities. This amount is the net effect of
these differences in the treatment of long-term debt and related items.
(4,771,618)
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.
(1,931,581)
Internal service funds are used by management to charge the costs of information
technology, fleet management, risk management, and warehousing to individual funds
and customers. Losses arising from the internal customers are added as expenditures on
the statement of activities as chargebacks. Revenues and expenditures with outside
customers are included also, as are nonoperating revenues and expenses. This amount
is the effect of reporting internal service funds with governmental activities.
628,672
$
Change in net position of governmental activities
The notes to financial statements are an integral part of this statement.
26
(21,325,320)
CITY OF FORT MYERS, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2014
Governmental
Activities
Business-type Activities
WaterWastewater
ASSETS
Current assets:
Cash and cash equivalents
Investments
Restricted cash and cash equivalents
Restricted investments
Accounts receivable, net
Interest receivable
Restricted interest receivable
Due from other governmental agencies
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Unamortized bond insurance costs
Intangible assets, net
Land and improvements
Construction in progress
Buildings, net
Improvements other than buildings, net
Equipment, net
Total noncurrent assets
Total assets
$
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts on refunding
Total deferred outflows of resources
13,090,775
5,229,491
31,669,263
12,398,642
6,599,678
30,282
17,046
4,738,442
297,713
4,313
74,075,645
Total Nonmajor
Funds
Solid Waste
$
4,945,443
1,992,706
276,819
99,169
1,024,770
9,662
519
7,389
8,356,477
$
9,739,431
3,322,392
706,408
862,920
104,072
14,240
1,061
1,056,892
162,730
114,849
16,084,995
Total Enterprise
Funds
$
27,775,649
10,544,589
32,652,490
13,360,731
7,728,520
54,184
18,626
5,802,723
460,443
119,162
98,517,117
Internal Service
Funds
$
7,277,357
3,265,255
3,550,258
1,271
20,407
622
660,080
149,458
14,924,708
218,519
144,770
954,695
524,061
25,791,947
267,178,020
3,847,960
298,659,972
372,735,617
196,047
2,252,599
2,448,646
10,805,123
42,640
2,833,448
367,055
8,354,289
21,426,590
959,327
33,983,349
50,068,344
218,519
187,410
3,788,143
1,087,163
34,146,236
288,604,610
7,059,886
335,091,967
433,609,084
16,904
4,716
968,274
989,894
15,914,602
414,651
414,651
6,132
6,132
6,237
6,237
427,020
427,020
-
LIABILITIES
Current liabilities:
Accounts and contracts payable
Accrued and other liabilities
Due to other governmental agencies
Customer deposits
Compensated absences
Claims and judgments
Accrued interest payable
Capital lease payable
Loans and notes payable
Revenue bonds payable
Total current liabilities
Noncurrent liabilities:
Compensated absences
Other postemployment benefits payable
Claims and judgments
Due to private sources
Capital lease payable
Loans and notes payable
Revenue bonds payable
Total noncurrent liabilities
Total liabilities
2,213,226
89,774
116,615
6,687,447
82,762
4,608,975
5,165,951
5,875,000
24,839,750
239,002
5,344
30,885
5,365
31,671
312,267
3,699,025
57,622
50,084
163,744
137,932
19,875
204,916
30,294
4,363,492
6,151,253
152,740
166,699
6,851,191
251,579
4,634,215
5,370,867
5,936,965
29,515,509
258,909
120,043
15,243
2,968,500
116,247
3,478,942
290,841
1,346,856
2,832,963
116,908,119
130,621,855
252,000,634
276,840,384
108,914
435,901
308,311
853,126
1,165,393
221,399
1,032,995
3,748,043
294,906
5,297,343
9,660,835
621,154
2,815,752
2,832,963
120,656,162
131,225,072
258,151,103
287,666,612
108,122
431,991
2,154,345
78,273
2,772,731
6,251,673
DEFERRED INFLOWS OF RESOURCES
Deferred amounts on refunding
Total deferred inflows of resources
2,405,962
2,405,962
-
-
2,405,962
2,405,962
-
38,319,600
2,099,134
26,471,979
66,890,713
795,374
9,328,380
9,890,656
3,144,674
8,864,065
24,356,547
93,903,922
22,798
25,573
322,772
7,175,585
9,645,862
3,622,119
24,382
150,783
26,500
10,117,983
40,413,746
12,973,297
9,940,611
3,144,674
9,337,620
26,500
41,650,115
143,963,530
8,867,555
9,662,929
NET POSITION
Net investment in capital assets
Restricted for:
Capital projects
Debt service
Impact fee projects
Renewal and replacement
Transportation
Unrestricted
Total net position
$
$
The notes to financial statements are an integral part of this statement.
27
$
$
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2014
Governmental
Activities
Business-type Activities
WaterWastewater
OPERATING REVENUES
Charges for services
Rent
Miscellaneous
Total operating revenues
$
OPERATING EXPENSES
Personnel services
Materials and supplies
Contractual services
General and administrative
Utilities
Repairs and maintenance
Rentals
Travel
Insurance
Self insurance claims
Depreciation
Total operating expenses
57,857,628
3,066,058
60,923,686
Solid Waste
$
14,360,938
54,722
14,415,660
Total Nonmajor
Funds
$
14,618,528
906,904
730,692
16,256,124
Total Enterprise
Funds
$
86,837,094
906,904
3,851,472
91,595,470
Internal Service
Funds
$
15,706,138
934,022
16,640,160
8,820,169
2,370,056
1,947,325
2,405,116
2,344,266
2,682,876
987,562
4,778
605,400
13,842,785
36,010,333
3,054,264
255,094
2,131,424
446,067
22,408
116,114
1,769,457
1,408
385,800
681,160
8,863,196
6,770,873
3,050,148
2,197,839
1,151,969
955,486
513,056
1,053,367
6,430
529,500
1,760,017
17,988,685
18,645,306
5,675,298
6,276,588
4,003,152
3,322,160
3,312,046
3,810,386
12,616
1,520,700
16,283,962
62,862,214
3,046,433
3,998,090
652,797
671,739
665,292
802,717
371,074
22,939
1,564,690
2,252,162
476,386
14,524,319
24,913,353
5,552,464
(1,732,561)
28,733,256
2,115,841
42,331
(10,050,980)
(10,008,649)
14,335
23,162
(15,042)
22,455
933
10,229
(205,004)
(193,842)
933
66,895
23,162
(10,271,026)
(10,180,036)
16,322
(13,708)
(292,737)
(290,123)
14,904,704
5,574,919
(1,926,403)
18,553,220
1,825,718
Capital grants and contributions
Transfers in
Transfers out
8,078,710
(6,335,940)
(4,754,200)
569,159
8,377,148
(503,336)
8,647,869
8,377,148
(11,593,476)
(1,197,046)
Change in net position
16,647,474
820,719
6,516,568
23,984,761
628,672
33,897,178
40,413,746
119,978,769
$ 143,963,530
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Operating grants and contributions
Interest income
Gain (loss) on disposal of capital assets
Interest expense and bond insurance costs
Total nonoperating revenues (expenses)
Income (loss) before contributions and
transfers
Net position - beginning
Net position - ending
$
77,256,448
93,903,922
$
The notes to financial statements are an integral part of this statement.
28
8,825,143
9,645,862
$
$
9,034,257
9,662,929
CITY OF FORT MYERS, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Other operating receipts
Payments to suppliers and service providers
Payments to employees for services
Other operating payments
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in
Transfers out
Operating grants and contributions
Payments on interfund loans
Net cash provided by (used for) noncapital financing
activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from bond issuance
Capital grants and contributions
Acquisition and construction of capital assets
Principal paid on notes and bonds
Interest paid on notes and bonds
Payment on capital lease
Proceeds from sale of capital assets
Net cash (used for) capital and related financing
activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Proceeds from sale of investments
Interest on investments
Net cash provided by (used for) investing activities
Net increase in cash and cash equivalents
Balances - beginning of year
Balances - end of year
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
Decrease in bad debt
(Increase) decrease in inventories
(Increase) decrease in prepaid items
(Decrease) increase in customer deposits payable
(Decrease) increase in accounts payable - supplier
(Decrease) increase in accounts payable - other
(Decrease) increase in compensated absences
Increase in other postemployement benefits
Net cash provided by (used for) operating activities
WaterWastewater
$ 57,776,259
3,066,058
(13,987,731)
(8,689,345)
(406,366)
37,758,875
$ 14,454,038
54,722
(5,210,661)
(2,988,007)
(8,125)
6,301,967
$ 15,642,915
730,692
(8,966,506)
(6,608,402)
(222,773)
575,926
$ 87,873,212
3,851,472
(28,164,898)
(18,285,754)
(637,264)
44,636,768
$ 15,706,394
934,022
(9,604,634)
(5,050,426)
1,985,356
18,503,367
(24,839,307)
-
2,008,311
(6,762,511)
-
18,520,899
(10,647,087)
933
-
39,032,577
(42,248,905)
933
-
(1,197,046)
(17,644)
(6,335,940)
(4,754,200)
7,874,745
(3,215,395)
(1,214,690)
(221,754)
161,508
(6,497,412)
(8,923,399)
(9,592,330)
-
(2,194)
(1,186,570)
(55,200)
(15,281)
25,000
(2,098)
569,159
(4,234,805)
(248,372)
(205,920)
-
(226,046)
730,667
(11,918,787)
(9,226,971)
(9,813,531)
25,000
(449,806)
(98,217)
1,500
(25,073,387)
(1,234,245)
(4,122,036)
(30,429,668)
(546,523)
(2,078,013)
3,809,585
111,833
1,843,405
8,192,953
36,567,085
$ 44,760,038
$
(167,637)
25,290
(142,347)
171,175
5,051,087
5,222,262
(1,274,953)
69,619
41,512
(1,163,822)
3,164,813
7,281,026
$ 10,445,839
(3,520,603)
3,879,204
178,635
537,236
11,528,941
48,899,198
$ 60,428,139
(307,837)
134,221
31,786
(141,830)
82,313
10,745,302
$ 10,827,615
$ 24,913,353
$
5,552,464
(1,732,561)
$ 28,733,256
$
$
Total
Enterprise
Funds
Internal
Service Funds
2,115,841
13,842,785
681,160
1,760,017
16,283,962
476,386
(466,900)
(43,757)
(82,779)
(4,315)
397,364
(614,461)
(313,239)
(40,460)
171,284
$ 37,758,875
104,647
(11,547)
(91,014)
10,888
55,369
6,301,967
763,475
(672,503)
(11,833)
(1,265)
(67,100)
364,352
10,874
23,219
139,251
575,926
401,222
(727,807)
(94,612)
(5,580)
330,264
(341,123)
(302,365)
(6,353)
365,904
$ 44,636,768
255
21,832
3,334
(698,372)
5,143
60,937
1,985,356
Schedule of non-cash investing, capital, and financing activities:
Interest receivable / unrealized gain (loss)
$
Donation of utility improvements
Governmental
Activities
Business-type Activities
Total
Nonmajor
Solid Waste
Enterprises
(69,502)
7,917,202
The notes to financial statements are an integral part of this statement.
29
$
$
(10,955)
-
$
$
(31,283)
-
$
(111,740)
7,917,202
$
$
(15,464)
-
CITY OF FORT MYERS, FLORIDA
Statement of Net Position
Fiduciary Funds
September 30, 2014
Pension Trust
Funds
ASSETS
Cash and cash equivalents
$
Receivables
Employer contributions
Due from broker for investments sold
Tax reclaims
Interest and dividends
Prepaid items - benefits
Total receivables
Investments, at fair value
U.S. government and agency securities
Municipal bonds
Corporate stock
Corporate stocks - ADR
Corporate bonds
Convertible bonds
Convertible preferred
Mortgage backed securities
Asset backed securities
Mutual funds:
Fixed income
Equity
International equity
Commingled funds:
Real estate
International equity
Master limited partnerships
Private placements
Real estate investment trusts
International securities:
Bonds and notes
Stocks
Total investments
Total assets
LIABILITIES
Payables
Accounts and contracts payable
Accrued and other liabilities
Benefit payments
Investment expenses
Administrative expenses
Due to broker for investments purchased
Due to other governmental agencies
Prepaid member contributions
Total liabilities
NET POSITION
Net position restricted for pensions
$
The notes to the financial statements are an integral part of this statement.
30
9,646,145
Agency
Funds
$
86,022
15,241,764
330,878
3,260
429,448
1,023,675
17,029,025
60
60
11,814,572
1,924,397
99,708,910
508,549
10,525,649
6,539,493
1,445,433
14,174,144
4,108,416
-
17,063,299
10,116,984
19,030,927
-
14,457,644
11,870,496
1,962,402
40,110
965,209
-
852,526
4,294,097
231,403,257
-
258,078,427
$
86,082
3,808
296,107
22,172
162,030
889
485,006
$
25,503
19,719
40,860
86,082
257,593,421
$
CITY OF FORT MYERS, FLORIDA
Statement of Changes in Net Position
Fiduciary Funds
For the Year Ended September 30, 2014
Pension Trust
Funds
ADDITIONS
Contributions
Employer
State of Florida
Plan members
Total contributions
$
21,983,717
1,418,254
2,726,394
26,128,365
Investment income
Net appreciation in fair value
of investments
Interest and dividends
Total investment gains
17,544,711
4,739,044
22,283,755
Less: investment expenses
Net investment gains
1,585,025
20,698,730
Total additions
46,827,095
DEDUCTIONS
Benefits paid
Administrative expenses
Total deductions
19,276,128
333,572
19,609,700
Change in net position
27,217,395
NET POSITION
Net position - beginning
Net position - ending
$
The notes to the financial statements are an integral part of this statement.
31
230,376,026
257,593,421
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.
Description of government-wide financial statements
The government-wide financial statements (the Statement of Net Position and the Statement of Activities) report
information on all of the non-fiduciary activities of the primary government and component units. The City’s fiduciary
funds are presented in the fund financial statements by type (pension and agency). Since, by definition, these assets
are being held for the benefit of a third party (i.e. pension participants) and cannot be used to address activities or
obligations of the government, these funds are not incorporated into the government-wide statements. 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.
2.
Reporting Entity
The City of Fort Myers, (City) was incorporated in 1886 pursuant to the laws of Florida 3959, and Chapter 165,
Florida Statutes. The City operates under a City Council-Manager form of government and consists of six wards,
each represented by a council member, and a seventh voting seat, the Mayor elected-at-large.
The accompanying financial statements present the City and its component units. Component units are legally
separate organizations for which the City, as the primary government, is financially accountable. Financial
accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the
ability to impose will by the primary government, or (b) the potential that the component unit will provide specific
financial benefits to, or impose specific financial burdens on, the primary government. As a result, the primary
government and its component units combine to form a single financial reporting entity for financial statement
purposes.
In evaluating the City as a reporting entity, management considered all potential component units in accordance with
Governmental Accounting Standards Board (GASB) Statement No. 14, “Defining the Financial Reporting Entity”;
GASB Statement No. 39, “Determining Whether Certain Organizations are Component Units – an amendment of
GASB Statement No. 14”; and, GASB Statement No. 61, “The Financial Reporting Entity: Omnibus – an amendment
of GASB Statements No. 14 and No. 34”. GASB Statement No. 61 further requires that a financial benefit or burden
relationship be present, regardless of the election or appointment of the component unit’s governing board.
Management reviewed all of the financial accountability concepts and determined the existing blended component
units met the criterion for blending. They are included in the City’s reporting entity and are reported as part of the
primary government.
Blended Component Units: The Community Redevelopment Agency of Fort Myers (CRA) was established
November 5, 1984 by the City of Fort Myers under Ordinance 2259 pursuant to Chapter 163, Part III of the Florida
Statutes. The mission of the CRA is to redevelop and revitalize the historic downtown as well as the older
commercial corridors and residential neighborhoods of the City. The six City Council Members and the Mayor are the
governing board of the CRA, sitting as the Board of Governors, which elects a chairperson and vice-chairperson.
The CRA is fiscally dependent on the City because it is unable to issue bonded debt without approval by the primary
government. The majority of the revenue sources result from tax increment financing, which is a commitment of the
City’s taxing power.
The CRA includes the Downtown Redevelopment Area, the Velasco Village Redevelopment Area, the Central Fort
Myers Redevelopment Area, the Eastwood Village Redevelopment Area, the Dunbar-Michigan Redevelopment Area,
the East Fort Myers Redevelopment Area, the Cleveland Avenue Redevelopment Areas and the Martin Luther King
Redevelopment Areas. The CRA is presented as a non-major special revenue fund and its financial statements are
included in the City’s Comprehensive Annual Financial Report for the year ended September 30, 2014 in the
Combining Statements and Schedules section. Separate financial statements for the CRA are not available.
Other Related Organizations: The City of Fort Myers Housing Authority is a separate legal entity. Authority
commissioners are appointed by the Mayor and approved by the City Council and may be removed for cause. There
is no financial benefit or burden to the City and the City has no authority over day-to-day operations. As such, this
organization is not included in the accompanying financial statements.
32
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.
Basis of presentation – government-wide financial statements
While separate government-wide and fund financial statements are presented, they are interrelated. The
governmental activities column incorporates data from governmental funds and internal service funds, while
business-type activities incorporate data from the City’s enterprise funds. Separate financial statements are provided
for governmental funds, proprietary funds and fiduciary funds. Fiduciary funds and component units that are fiduciary
in nature (i.e. Pension Trust Funds) are excluded from the government-wide financial statements.
Generally, interfund activity has been eliminated from the government-wide financial statements. Notable exceptions
are other charges of the City’s water and wastewater function. Elimination of these charges would distort the direct
costs and program revenues reported for the various functions concerned.
4.
Basis of presentation – fund financial statements
The fund financial statements provide information about the City’s funds, including its fiduciary funds and blended
component units. Separate statements for each category – governmental, proprietary, and fiduciary – are presented.
The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a
separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds.
Major individual governmental and enterprise funds are reported as separate columns in the fund financial
statements.
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 that are required to be accounted for in another fund. Revenue is derived
primarily from property taxes, state and federal distributions, grants and other intergovernmental revenue.
The general operating expenditures, fixed charges and capital outlay costs that are not paid through other
funds are paid from the General Fund.
The Revenue Bonds and Notes Fund accounts for the accumulation of resources to pay outstanding long
term debt. It is made up of several sub-funds, one for each bond or other borrowing that is outstanding and
for which resources are accumulated to pay the debt service.
The Transportation Capital Projects Fund accounts for resources accumulated to provide transportation
related capital projects. It includes road impact fees, cash from debt borrowing, the accounting for capital
projects and the 5th cent local option gas tax money.
The General Capital Projects Fund is used to account for the financial resources to be used for the
acquisition and construction of the City’s general capital facilities, improvements and equipment.
The City reports the following major enterprise funds:
The Water-Wastewater Utility Fund accounts for the activities related to providing water, wastewater and
reclaimed water services to the public.
The Solid Waste Fund accounts for the revenues and costs associated with providing solid waste services to
the residents of the City.
In addition, the City reports the following other fund types:
Internal Service Funds account for services provided to other departments of the City on a cost
reimbursement basis. These services include: Information Technology Services, Risk Management
Services (workers’ compensation, general liability insurance and property insurance), Central Garage and a
Public Works Warehouse that acts as a central store for items needed for all phases of Public Works.
33
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
4.
Basis of presentation – fund financial statements (continued)
The Pension Trust Funds account for activities of the City’s General Employee’s Pension Plan, Police
Officers’ Retirement System and the Municipal Firefighters’ Pension Trust Fund (collectively, the Pension
Trust Funds). The Pension Trust Funds are separate legal entities, which accumulate resources for the
pension benefit payments to virtually all full-time, regular employees, all non-civilian police department
employees, and all firefighters and fire department officers, respectively.
The Agency Funds are used to account for resources collected by the City for third parties. These agency
funds include the Regional Park Impact Fee Fund, the Emergency Medical Services (EMS) Impact Fee
Fund, School Board Impact Fee Fund, Unclaimed Funds and the Employees’ Special Events Fund. The
Carillon Woods Special Assessment Geographical Area Fund is an agency fund used to collect payments
from property owners of the special assessment district and then use those payments to pay the debt
service incurred in providing the capital improvements to the district. The City has no obligation for the debt
other than to collect the payments and assist in foreclosure action if necessary. The Regional Park, EMS
and School Impact Fee Funds are impact fees levied by the County. The City collects these impact fees at
the time permits are issued and then turns the fees over to the County. The Unclaimed Funds fund
accounts for funds that the City has been holding, and if not claimed, will eventually go to the State of
Florida. The Employee Special Events Fund is money being held for the group that does special events for
the City’s employees. This group raises their own funds and the City provides the tracking and accounting
of these funds for the Committee.
During the course of its operations, the City has numerous transactions between funds to provide services, construct
assets and service debt. To the extent that certain transactions between funds were not paid or received as of
September 30, 2014, balances of interfund receivables and payables expected to be liquidated within one year have
been recorded as due from and due to other funds. Balances of interfund receivables and payables not expected to
be liquidated within one year are recorded as advances to and advances from other funds. While these balances are
reported in the fund financial statements, certain eliminations are made in the preparation of the government-wide
financial statements. Balances between the funds included in governmental activities (the governmental and internal
service funds) are eliminated so that only the net amount is included as internal balances in the governmental
activities column. Similarly, balances between the funds included in business-type activities (the enterprise funds)
are eliminated so that only the net amount is included as internal balances in the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial
statements, these amounts are reported at gross amounts as transfers in/out. While reported in fund financial
statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers
between funds included in governmental activities are eliminated so that only the net amount is included as transfers
in the governmental activities column. Similarly, balances between the funds included in business-type activities are
eliminated so that only the net amount is included as transfers in the business-type activities column.
5.
Measurement focus, basis of accounting and financial statement presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of
accounting. Measurement focus indicates the type of resources being measured such as current financial resources
or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the
financial statements.
Government-wide financial statements. The government-wide financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of 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 have been met.
Governmental fund financial statements. The 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
34
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
5.
Measurement focus, basis of accounting and financial statement presentation (continued)
are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period. 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. General capital asset acquisitions are reported as expenditures
in governmental funds. Issuance of long-term debt is reported as other financing sources.
Property taxes, public service taxes, franchise taxes, fuel taxes, and interest associated with the current fiscal period
are all considered to be susceptible to accrual. These have been recognized as revenues of the current fiscal period
when they also meet the availability criteria (within 60 days of year end). Revenues from Federal and State
reimbursement type grants are recognized when the qualifying expenditures have been incurred and all eligibility
requirements have been met, and the amount is received during the period or within the availability period for this
revenue source (within 60 days of year end). For special assessments, only the portion of the receivable due within
the current period is considered to be susceptible to accruals as revenue of the current period. All other revenue
items are considered to be measurable and available only when the City receives the cash.
Proprietary, fiduciary and agency funds. The proprietary and fiduciary funds are reported using the economic
resources measurement focus and the accrual basis of accounting. The agency funds are balance sheet funds only,
and therefore have no measurement focus but use the accrual basis of accounting for reporting the assets and
liabilities of the agency funds.
6.
Budgetary information
Budgetary basis of accounting
Annual budgets are legally adopted for the General Fund, Debt Service Funds, Enterprise Funds, Internal Service
Funds, Trust and Agency Funds and certain Special Revenue Funds. In addition, project budgets are adopted for the
Capital Project Funds for the respective year along with approval of the five-year Capital Improvement Program. The
City prepares its budget on a basis consistent with generally accepted accounting principles, with a few exceptions.
For budget purposes, depreciation is not shown in the annual budgets and debt service is reported as current year
expenditures.
The appropriated budget is prepared by fund, department, and division. The City Manager, the Director of Finance
and the Budget Manager have the authority to approve the transfer of funds within a department, within a fund.
Transfers that are greater than $50,000 are presented to Council on a quarterly basis following their implementation.
Transfers that are less than $50,000 are not presented to Council unless the cumulative total reaches $50,000 in any
department and are then reported on a quarterly basis as well. In most cases, divisions are required to transfer funds
only to meet unanticipated needs or to reflect organizational changes. The legal level of budgetary control (i.e., the
level at which expenditures may not legally exceed appropriations) is the department level within a fund, except for
the Community Redevelopment Agency, which uses the fund level as their budgetary control.
Whereas the adopted budget is meant to control and provide for the efficient and economical running of the City,
amendments (increases or decreases in appropriations and/or revenue estimates) to a budget may be required
during the year to properly account for unanticipated needs or opportunities. Budget amendments in the amount of
$50,000 or less (excluding use of reserves and changes to capital projects) require the approval of the City Manager
and the Director of Finance, or their designees. All such amendments are provided to City Council on a quarterly
basis following their implementation. All amendments to appropriations greater than $50,000, any adjustments to
reserves, and/or adjustments to capital projects require City Council approval prior to implementation into the adopted
budget.
Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances.
Encumbrances are commitments related to unperformed contracts for goods or services, such as purchase orders,
contracts, and commitments. Encumbrance accounting is used to the extent necessary to assure effective budgetary
control and accountability and to facilitate effective cash planning and control. All encumbrances lapse at fiscal year
end and valid encumbrances are re-appropriated and become part of the subsequent year’s budget.
35
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6.
Budgetary information (continued)
Excess of expenditures over appropriations
For the year ended September 30, 2014, expenditures did not exceed appropriations as City divisions spent
according to or slightly less than the budget.
7.
Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance
a.
Cash and cash equivalents
The City considers all highly liquid investments with original maturities of three months or less when
purchased, as well as investments in the City’s cash and investment pool, to be cash equivalents.
b.
Investments
Investments for the City are reported at fair value and include obligations of the U.S. Treasury,
Government Sponsored Enterprise Securities, corporate bonds, asset backed securities, mortgage
backed securities and collateralized mortgage obligations. Money market investments with a remaining
maturity at the time of purchase of one year or less are reported at amortized cost. The difference
between cost and fair value of investments held is recorded as net unrealized gains or losses and is
included in net investment earnings. Purchases and sales of investments are recorded on the trade
dates. Net realized gains and losses on sale of investments are reflected in current operating results as
investment earnings along with interest and dividends.
The City invests surplus funds in an external investment pool, a Local Government Surplus Funds Trust
Fund known as “Florida PRIME”. The Local Government Surplus Funds Trust Fund was created by an
Act of the Florida Legislature effective October 1, 1977 (Chapter 218, Part IV, of the Florida Statutes).
The State Board of Administration (“SBA”) is charged with the powers and duties to administer and invest
Florida PRIME, in accordance with the statutory fiduciary standards of care as contained in Section
215.47(9), Florida Statutes. The SBA has contracted with Federated Investment Counseling (the
“Investment Manager”) to provide investment advisory services for Florida PRIME.
As a Florida PRIME participant, the City invests in a pool of investments whereby the City owns a share of
the respective pool, not the underlying securities. The Florida “PRIME” is considered an SEC “2a-7 like”
pool, an external investment pool that is not registered with the Securities and Exchange Commission
(“SEC”) as an investment company, but nevertheless has a policy that it will, and does, operate in a
manner consistent with Rule 2a-7 under the Investment Company Act of 1940. Rule 2a-7 is the rule that
permits money market funds to use amortized cost to maintain a constant Net Asset Value (NAV) of $1.00
per share (which approximates fair value), provided that such funds meet certain conditions. Thus, the
City’s account balance should also be considered the fair value of its investment.
c.
Receivables
All trade, property tax and other receivables on the Statement of Net Position are shown net of allowance
for uncollectible amounts. All receivables are reviewed periodically and, when determined to be
uncollectible, are turned over to a collection agency. Once turned over to the collection agency, the
amount is included in the uncollectible balance.
d.
Inventories
Inventories for all funds, except for the enterprise funds, consist primarily of expendable supplies held for
consumption and are stated at cost (first-in, first-out method). For the enterprise funds, the City uses the
consumption method of accounting, which provides that expenditures are recognized when inventory is
used. Inventory in the Yacht Basin Enterprise Fund, Skatium Enterprise Fund and the Department of
Cultural and Historic Affairs Enterprise Fund, which includes the Historical Museum and the Imaginarium
36
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7.
Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance (continued)
d.
Inventories (continued)
Science Center, is held primarily for resale and stated at cost. The Department of Cultural and Historic
Affairs and the Skatium value inventory at replacement cost. The Yacht Basin values oil and gift shop
inventory by the retail method and fuel inventory by the cost inventory method. Both the retail and cost
inventory methods use the last-in, first-out method. All inventories, regardless of fund, are counted on a
periodic basis.
e.
Prepaid items
Prepaid items are items that have been paid in the current accounting period but are proper
expenses/expenditures extending over more than one accounting period and are allocated between those
accounting periods that receive the benefit of the expense/expenditure.
f.
Restricted assets
Proceeds of the City’s enterprise fund revenue bonds, as well as other resources set aside in accordance
with bond covenants and local ordinance, are classified as restricted on the fund level Statement of Net
Position of the enterprise funds. These include the following: operating accounts for the WaterWastewater enterprise fund that are used for the accumulation of resources equal to operating costs for
specified periods; renewal and replacement accounts used for the accumulation of resources to provide
for replacement of existing system assets; debt service accounts used for the accumulation of resources
needed to meet debt service requirements as they become due; capital project accounts used for
acquisition and construction of assets funded by revenue bond proceeds; the impact fee construction
account used for the accumulation and expenditure of amounts restricted by local ordinance for future
plant expansion; and customers’ deposits account restricted from use by local ordinance.
In addition, certain assets are restricted in the other enterprise funds due to the proper use of the assets.
The most notable of these are customer deposit accounts and resources accumulated to repay
outstanding debt. Restricted assets are not presented on the balance sheets of the governmental funds
under the modified accrual basis of accounting; however, certain assets of these funds are restricted as to
use. Such assets, consisting primarily of cash and receivables, include debt proceeds, permit fees, state
and federal forfeiture awards, state and federal grants and amounts held for debt service. All
applicable assets in the enterprise funds and in the governmental funds have been restricted in amounts
sufficient to meet restrictive purposes.
g.
Capital assets
The City’s capital assets, which include property, plant, equipment, and infrastructure assets (roads,
bridges, sidewalks, and similar assets), are reported in the applicable governmental or business-type
activities column in the government-wide financial statements. The City defines capital assets, including
infrastructure, as assets with an initial, individual cost of more than $5,000 and an estimated useful life in
excess of two years.
For the initial capitalization of major general fund infrastructure assets, which are reported by
governmental activities, the City included all long-lived assets such as roads, sidewalks, storm drainage
systems, bridges, tunnels, traffic lights, etc. The City used actual costs, where available, in assigning
historical costs to the infrastructure assets. Otherwise, historical costs were assigned based on a trending
analysis using current replacement costs. As the City constructs or acquires additional capital assets,
they are capitalized and reported at historical cost.
37
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7.
Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance (continued)
g.
Capital assets (continued)
Interest incurred during the construction phase of capital assets of enterprise funds is included as part of
the capitalized value of the assets constructed. Normal maintenance and repairs, which do not increase
the capacity or efficiency of the asset or increase its estimated useful life, are expensed. Donated capital
assets are recorded at their estimated fair value at the date of donation.
The City does not depreciate land, antiques and exhibits, historical buildings, intangible assets with
indefinite lives, and construction in progress. Other City property, plant, equipment and infrastructure are
depreciated using the straight line method over the following estimated useful lives:
Buildings
Other improvements
Equipment
Infrastructure of enterprise funds
Other infrastructure
h.
20-40 years
15-50 years
3-15 years
15-50 years
20-40 years
Deferred outflows/inflows of resources
In addition to assets, the City’s statement of financial position reports a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/expenditure) until then. The City has one item that qualifies for
reporting in this section. It is the deferred charge on refunding reported in the government-wide statement
of net position, the governmental funds balance sheet and the proprietary funds’ statement of net position
in the City’s basic financial statements. A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over
the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the City’s statement of financial position reports 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 to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The City has two types of items that qualify for reporting in this
category: deferred amounts on refunding and unavailable revenue. On the government-wide statement of
net position, the proprietary funds’ statement of net position in the City’s basic financial statements, and
the nonmajor enterprise funds’ combining statement of net position, the City reports a deferred inflow of
resources for deferred amounts on debt refunding. Unavailable revenue, which arises only under a
modified accrual basis of accounting, is reported in the City’s governmental funds balance sheet. The
governmental funds report unavailable revenues from occupational licenses and rental income that are
revenues of the subsequent year, special assessments, cemetery lot sales, and grant receipts. These
amounts are deferred and recognized as an inflow of resources in the period that the amounts become
available.
i.
Long-term obligations
Long-term obligations, such as bonds and notes, are recorded at the fund level in the proprietary funds
and at the government-wide level for the governmental and business-type activities. Amounts payable
within one year are classified as current liabilities on the proprietary funds statement of net position and as
noncurrent liabilities due within one year on the government-wide statement of net position.
38
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7.
Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance (continued)
j.
Net position
Net position of the government-wide and proprietary funds is categorized as net investment in capital
assets, restricted or unrestricted. The first category represents net position related to property, plant,
equipment and infrastructure. The restricted category represents the balance of net position restricted by
requirements of revenue bonds and other externally imposed constraints or by legislation in excess of the
related liabilities payable from restricted assets.
k.
Net position flow assumption
Sometimes the City will fund outlays for a particular purpose from both restricted resources, such as bond
or grant proceeds, and unrestricted resources. When both restricted and unrestricted resources are
available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as
they are needed.
l.
Fund balance flow assumption
In determining the classification of total spendable fund balance remaining at the end of the fiscal year,
when an expenditure is incurred for purposes for which both restricted and unrestricted amounts are
available, it is the City’s policy that expenditures will be applied first to restricted fund balance and then to
unrestricted fund balance (committed, assigned, and unassigned). When unrestricted fund balance
(committed, assigned, and unassigned) is available for use, it is the City’s policy to use committed
resources first, then assigned, and then unassigned as needed.
m. Fund balance policy
In the fund financial statements, fund balance for governmental funds is reported in classifications that
comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the
specific purpose for which amounts in the funds can be spent. Fund balance is reported in five
components – Nonspendable, restricted, committed, assigned and unassigned.
Nonspendable – This component includes amounts that cannot be spent because they are either (a) not
in spendable form or (b) legally or contractually required to be maintained intact. “Not in spendable form”
includes items that are not expected to be converted to cash (such as inventories and prepaid amounts)
and items such as the long-term amount of advances to other funds as well as property acquired for
resale.
Restricted – This component consists of amounts that are subject to externally enforceable legal
restrictions, which are imposed either (a) by third parties, such as creditors (through debt covenants),
grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional
provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge or
otherwise mandate payment of resources (from external resource providers) and includes a legally
enforceable requirement (compelled by external parties) that those resources be used only for the specific
purposes stipulated in the legislation.
Committed Fund Balance – This component consists of amounts that can only be used for specific
purposes imposed by formal action (resolution) of the City Council, the City’s highest level of decision
making authority. The committed amounts are not subject to legal enforceability by external parties, as in
restricted fund balance; however, these amounts cannot be used for any other purpose unless the City
Council removes or changes the limitation by taking the same form of action (resolution) it employed to
previously commit those amounts.
39
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7.
Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance (continued)
m. Fund balance policy (continued)
Assigned Fund Balance – This component consists of amounts that are constrained by the City’s intent to
be used for specific purposes but do not meet the criteria to be classified as committed. The City Council
has by resolution authorized the following management officials to express intentions for assigned fund
balance: (a) City Council, or (b) the City Manager, Director of Finance, or other subordinate high-level
body or official possessing the authority to assign amounts to be used for specific purposes. Included in
this category is any fund balance carry-forward used to balance the subsequent year’s budget.
Unassigned Fund Balance – This classification represents amounts that have not been restricted,
committed or assigned to specific purposes within the General Fund. The General Fund is the only fund
that reports a positive unassigned fund balance amount. Other governmental funds besides the General
Fund can only report a negative unassigned fund balance amount.
8.
Revenues and expenditures/expenses
a.
Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
b.
Property Taxes
The City levies property taxes each November 1, which become a lien on real and personal property
located in the City. Property taxes are based on the assessed values determined by the Lee County
Property Appraiser as of the prior January 1. The current year’s levy is based on taxable assessed
property values totaling $4,200,257,846.
The State of Florida permits the City to levy taxes up to 10 mills of assessed property valuations for the
General Fund. For the 2013-2014 fiscal year, the City levied taxes of 8.7760 mills for the General Fund.
All taxes are due from property owners on March 31. However, property owners may pay a discounted
tax of 1% beginning November of the taxable year for each month prior to the March 31 due date. Taxes
become delinquent on April 1 and are subject to the issuance of tax sale certificates if unpaid by June 1.
At September 30, 2014, delinquent property taxes are not material to the basic financial statements of the
City and therefore have not been accrued as taxes receivable.
c.
Compensated Absences
Employees earn vacation and sick leave in varying amounts based on length of service. Employees may
also earn up to 120 hours of compensatory time. Upon termination, employees are paid 100% of the
accumulated vacation and compensatory time at current base hourly rates. Vacation accumulation is
capped at a maximum number of hours depending on employee category and bargaining unit. Upon
termination of employment, if the employee is eligible to receive retirement benefits, either regular or early
benefits, whether or not the benefits begin at termination or are deferred, the employee receives 33% of
accumulated sick leave paid at the employee’s current base hourly rate. The current portion of
compensated absences payable is the amount estimated to be used or paid in the following fiscal year.
Liability for accrued compensated absences of the governmental activities is not reported in the balance
sheet of the governmental funds and, accordingly, represents a reconciling item between the fund and
government-wide presentations. All compensated absences are accrued when incurred in the
40
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
8.
Revenues and expenditures/expenses (continued)
c.
Compensated Absences (continued)
government-wide, proprietary and fiduciary fund financial statements. All compensated absences are
liquidated as part of salary expense in the division and fund that pays the salaries of the employees.
These funds include the General Fund, Street Maintenance Special Revenue Fund, State Housing
Partnership Special Revenue Fund, Fort Myers Redevelopment Agency Special Revenue Fund, Water–
Wastewater Enterprise Fund, Solid Waste Enterprise Fund, the Building, Permits and Inspection
Enterprise Fund, Stormwater Enterprise Fund, Fort Myers Country Club Enterprise Fund, Eastwood Golf
Course Enterprise Fund, Yacht Basin Enterprise Fund, Harborside Event Center Enterprise Fund,
Skatium Enterprise Fund, Department of Cultural and Historic Affairs Enterprise Fund, Central Garage
Internal Service Fund, Information Technology Services Internal Service Fund, and the Risk Management
Internal Service Fund.
d.
Proprietary funds operating and non-operating revenues and expenses
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
proprietary funds and the internal service funds are charges to customers for sales and services. The
Water-Wastewater Utility Enterprise Fund also recognizes as operating revenues the portion of tap fees
intended to recover the cost of connecting new customers to the system. Operating expenses for
enterprise and internal service funds include the cost of sales and services, administrative expenses and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
9.
Other Policies
a.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenditures/expenses during the
reporting period. Actual results could differ from these estimates. Significant estimates used in these
financial statements include the amount of insurance claims payable (Note 14).
b.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of monies are recorded as a reservation of budget, is employed as an extension of the
statutorily required budgetary process. All encumbrances lapse at year end. Contracts that require
completion after the fiscal year end must be re-appropriated in the subsequent year. Note 13 provides
disclosure on the City’s outstanding encumbrances as of September 30, 2014.
41
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Explanation of certain differences between the governmental fund balance sheet and the government-wide
statement of net position
The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and
net position – governmental activities as reported in the government-wide statement of net position. One element of
that reconciliation explains that “capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.” The details of this $147,594,373 are as follows:
Land
Antiques and Exhibits
Construction in progress
Intangibles - easements
Buildings
Less: Accumulated depreciation for buildings
Improvements
Less: Accumulated depreciation for improvements
Equipment
Less: Accumulated depreciation for equipment
Infrastructure
Less: Accumulated depreciation for infrastructure
Net adjustment to increase fund balance - total governmental funds to arrive
at net position - governmental activities
$
25,385,341
251,871
3,937,039
3,560,054
22,447,992
(11,134,549)
46,218,055
(21,725,885)
14,417,571
(11,653,797)
265,662,544
(189,771,863)
$
147,594,373
Another element of that reconciliation explains that “long-term liabilities, including revenue bonds payable, are not
due and payable in the current period and, therefore, are not reported in the funds.” The details of this $139,390,698
are as follows:
Revenue bonds payable
Less: Deferred charge on refunding (to be amortized as interest expense)
Less: Bond insurance costs (to be amortized over life of debt)
Loans and notes payable
Capital leases payable
Accrued interest payable
Accrued retirement payable
Claims and judgments
Compensated absences
Other postemployment benefits payable
Net adjustment to reduce fund balance - total governmental funds to arrive
at net position - governmental activities
$
108,614,200
(3,670,889)
(344,907)
3,994,230
507,348
1,514,099
15,182,113
1,675,281
3,712,393
8,206,830
$
139,390,698
Explanation of certain differences between the governmental fund statement of revenues, expenditures, and
changes in fund balances and the government-wide statement of activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation
between net changes in fund balances – total governmental funds and changes in net position of governmental
activities as reported in the government-wide statement of activities. One element of that reconciliation explains that
“governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those
assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which
depreciation expense exceeded capital outlay in the current period.” The details of this $(7,183,132) difference are
as follows on the next page:
42
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (continued)
Explanation of certain differences between the governmental fund statement of revenues, expenditures, and
changes in fund balances and the government-wide statement of activities (continued)
Capital outlay
Non-capitalizable expenditures in capital outlay
Current year depreciation
Net adjustment to decrease net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities
$
4,361,479
(1,259,348)
(10,285,263)
$
(7,183,132)
Another element of that reconciliation states that “the issuance of long-term debt, such as bonds and leases, provides
current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes
the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.
Also, governmental funds report the effect of premiums, discounts and similar terms when debt is first issued,
whereas these amounts are deferred and amortized in the statements of activities. This amount is the net effect of
these differences in the treatment of long-term debt and related items.” The details of this $4,771,618 difference are
as follows:
Debt issued of incurred:
Installment agreement
General revenue bonds
Plus premium
$
Principal repayments:
General revenue bonds
Loans and notes
Capital lease
Payment to escrow agent for refunding
1,675,281
39,910,000
1,778,586
(7,262,000)
(521,154)
(82,455)
(30,726,640)
Net adjustment to decrease changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities
$
4,771,618
Another element of that reconciliation states that “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.” The details of this $(1,931,581) difference are as follows:
Amortization of bond premiums
Amortization of bond insurance costs
Amortization of deferred charge on refunding
Change in retirement payable
Change in other postemployment benefits payable
Change in accrued interest expense
Change in compensated absences
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities
43
$
240,834
7,708
(198,840)
(807,018)
(1,086,308)
153,178
(241,135)
$
(1,931,581)
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Deficit fund balance
The following governmental funds had a deficit fund balance at September 30, 2014:
Grants Fund
Community Development Block Grant Fund
Total deficit fund balance
$
$
(11,160)
(30,471)
(41,631)
The deficit fund balance for the above funds resulted from expenditures for which related revenue was not
recognized because of the timing of the reimbursements. The deficit was eliminated subsequent to year-end
upon receipt of reimbursement funding.
NOTE 4 – CASH DEPOSITS AND INVESTMENTS
Cash Deposits with Financial Institutions
At September 30, 2014, the carrying amount of the City’s deposits was $117,175,327 and the banks’ balances
were $118,681,715. The difference was due to checks that had been written but not yet paid by the banks and
deposits in transit.
These deposits are insured by the Federal Deposit Insurance Corporation or by collateral pursuant to the Florida
Security for Public Deposits Act (Florida Statutes Chapter 280). Under this Act, financial institutions that qualify
as public depositories pledge securities that have a market value equal to 50% - 125% of the average daily
balance for each month of all public deposits in excess of applicable deposit insurance. The Public Deposit
Security Trust Fund has a procedure to allocate and recover losses in the event of default or insolvency. When
public deposits are made in accordance with Chapter 280, no public depositor shall be liable for any loss thereof.
Investments
Florida Statutes, the City’s Investment Policy and various bond covenants authorize investments that include
money market accounts, savings accounts, interest bearing time deposits, repurchase agreements, the Local
Government Surplus Funds Trust Fund administered by the Florida State Board of Administration (SBA) or other
local government investment pool authorized by F.S. §163.01, obligations of the U.S. Government, government
agencies guaranteed by the U.S. Government and certain bond mutual funds. Derivative products are prohibited
unless specifically approved by City Council in advance.
1.
City’s Investments
The City’s investment policy applies to the investment of short-term operating funds of the City of Fort Myers
and all of its dependent special districts. Longer-term funds, including its employee retirement system
funds, funds related to the issuance of debt, and other funds held pursuant to trust agreements
administered, are covered by separate policies, contracts or agreements in effect for such funds.
Except for longer-term and restricted funds, all cash balances of all funds, including the General Fund,
Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Utility Fund and other proprietary
funds that exist or may be created from time to time, shall be consolidated and administered in accordance
with the provisions of this policy.
The basic goals of Fort Myers’ investment program are, in order of priority:
•
Safety of investments;
•
Maintenance of sufficient liquidity to meet cash flow needs, and;
•
Attainment of a market average rate of return (yield), taking into account the City’s investment risk
constraints and the cash flow characteristics of the portfolio.
44
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
1.
City’s Investments (continued)
The City’s cash and investment pool consists of the Local Government Surplus Funds Trust Fund
investment account administered by the Florida State Board of Administration (the “Florida PRIME” Pool)
and cash. Cash balances and requirements of all funds are considered in determining the amount to be
invested. Interest earned on pooled cash and investments is allocated monthly to funds based on their
average weekly cash balances.
Florida PRIME is governed by Chapters 215 and 218, Florida Statutes, and Chapter 19-7 of the Florida
Administrative Code (collectively, “Applicable Florida Law”). The Board of Trustees of the SBA (“Trustees”)
consists of the Governor, as Chairman, the Chief Financial Officer, as Treasurer, and the Attorney General,
as Secretary. The Trustees will annually certify that Florida PRIME complies with the requirements of
Chapter 218, Florida Statutes, and that the management of Florida PRIME is in accord with best investment
practices.
The Trustees delegate the administrative and investment authority to manage Florida PRIME to the
Executive Director of the SBA, subject to Applicable Florida Law. The Trustees appoint an Investment
Advisory Council and a Participant Local Government Advisory Council. Both Councils will, at least
annually, review this Policy and any proposed changes prior to its presentation to the Trustees and will
undertake other duties set forth in Applicable Florida Law. Pursuant to Florida law, the Auditor General will
conduct an annual financial audit of Florida PRIME, which will include testing for compliance with this Policy.
The primary investment objectives for Florida PRIME, in priority order, are safety, liquidity, and competitive
returns with minimization of risks. Investment performance of Florida PRIME will be evaluated on a monthly
basis against the Standard & Poor’s U.S. AAA & AA Rated GIP All 30 Day Net Yield Index. While there is
no assurance that Florida PRIME will achieve its investment objectives, it endeavors to do so by following
the investment strategies described in its investment policy. See Note 1, 7. b., Investments, for a discussion
of how the shares in Florida PRIME are valued.
The following disclosures pertain to Florida PRIME as of September 30, 2014:
•
•
•
Credit Quality Disclosure: Florida PRIME is rated by Standard and Poor’s. The current rating is
“AAAm”.
Interest Rate Risk Disclosure: The dollar weighted average days to maturity (WAM) of the Florida
PRIME is 39 days. The WAM was calculated by the Florida PRIME investment manager and
includes all holdings, including time deposit holdings. Next interest rate reset dates for floating rate
securities are used in the calculation of the WAM.
Foreign Currency Risk Disclosure: The Florida PRIME was not exposed to any foreign currency
risk during the period from October 1, 2013 through September 30, 2014.
At September 30, 2014, the City had the following investments:
Investments
Cash equivalents
Money market funds
Fair Value as of
September 30, 2014
$
2,117,299
14,770,599
Fixed Income:
Treasury and Agency securities
Corporate bonds
Asset backed securities
Corporate stocks
Florida PRIME Investment Pool
Total Cash Equivalents and Investments
$
34,505,430
8,885,931
1,014,784
78,727
22,601,160
83,973,930
Weighted Average
Maturity (in years)
0.758
0.104
0.058
0.036
0.957
Portfolio weighted average maturity
45
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
1.
City’s Investments (continued)
Interest Rate Risk
In accordance with its investment policy, the City mitigates its interest rate risk by structuring the City’s
portfolio so that the securities mature to meet the City’s cash requirements, thereby avoiding the need to sell
securities on the open market prior to their maturation; and investing primarily in shorter-term securities,
unless it can be anticipated that long-term securities can be held to maturity without jeopardizing liquidity
requirements.
Credit Risk
Safety of principal is the foremost objective of the City’s investment policy. The City’s policy limits the credit
risk by limiting investments to the safest types of securities; pre-qualifying the financial institutions with which
it will conduct business; diversifying the investment portfolio so that the failure of any one issuer or backer
will not place an undue financial burden upon the City; and monitoring all the City’s investments on a daily
basis to anticipate and respond appropriately to a significant reduction of credit worthiness of any of the
depositories.
As of September 30, 2014, the City’s investments in money market funds were rated AAAm by Standard &
Poor (S&P), Aaa-mf by Moody’s Investors Service (Moody’s) and AAAmmf by Fitch Ratings. Treasury and
agency securities were rated Aaa by Moody’s and AAA or AA+ by S&P. The City’s investments in corporate
bonds were rated Aaa or AAA by Moody’s and AA+ or A+ by S&P. Investments in asset backed securities
were rated Aaa by Moody’s and AAA or AA- by S&P.
2.
City’s Pension Plan Investments
The City reports three 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.
Consequently, each plan is disclosed separately below. All investments at the fiscal year end were in
compliance with the respective plan investment policies.
At September 30, 2014, the City’s three pension plans had the following cash and investments, which are
reported at fair value (generally based on quoted market prices):
Description
General Employees’ Pension Plan:
Cash
Money market
U.S. government and agency securities
Municipal bonds
Corporate stock
Corporate stock – ADR
Corporate bonds
Mortgage backed securities
Asset backed securities
Mutual funds – Fixed income
Mutual funds – Equity
Commingled funds – International equity
Private placements
Real estate investment trusts
International securities:
Bonds and notes
Stocks
Total
Fair Value
$
38,455
3,704,728
1,423,205
1,087,154
34,755,015
508,549
3,494,326
7,686,961
2,351,301
14,468,465
3,037,732
11,870,496
40,110
965,209
852,526
4,294,097
90,578,329
46
Credit Rating:
Standard & Poor’s
Credit Rating:
Moody’s
A-1
AA+
AAA to A+
Not rated
Not rated
AAA to BB+
AA+
AAA to AA+
Not rated
Not rated
Not rated
ANot rated
P1
Aaa
Aaa to A1
Not rated
Not rated
Aaa to Ba2
Aaa
Aaa
Not rated
Not rated
Not rated
A2e
Not rated
AA+ to BBBNot rated
Aaa to Baa3
Not rated
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
Municipal Firefighters’ Pension Trust Fund:
Cash
Money market
U.S. government and agency securities
Municipal bonds
Corporate stock
Corporate bonds
Asset backed securities
Mutual funds – Fixed income
Mutual funds – International equity
Commingled funds – Real estate
Total
370,319
3,419,000
1,302,376
837,243
34,376,772
4,658,040
1,757,115
2,594,834
9,024,005
8,065,067
66,404,771
AAA m
AAA
AAA to A+
Not rated
AA+ to BBBAAA
Not rated
Not rated
Not rated
Aaa-mf
Aaa
Aa3 to A1
Not rated
A1 to Baa3
Aaa
Not rated
Not rated
Not rated
Police Officers’ Retirement System:
Cash
Money market
U.S. government and agency securities
Corporate stock
Corporate bonds
Convertible bonds
Convertible preferred
Mortgage backed securities
Mutual funds – Equity
Mutual funds – International equity
Commingled funds – Real estate
Master limited partnerships
Total
1,322,643
791,000
9,088,991
30,577,123
2,373,283
6,539,493
1,445,433
6,487,183
7,079,252
10,006,922
6,392,577
1,962,402
84,066,302
AAA m
AAA to AANot rated
AA+ to BBB+
A- to CCCBB to BBBAAA to AANot rated
Not rated
Not rated
Not rated
Aaa-mf
Aaa-A2
Not rated
A1 to Baa3
A2 to Caa1
Ba1 to Baa3
Aaa
Not rated
Not rated
Not rated
Not rated
Total Cash and Investments
$ 241,025,403
For the year ended September 30, 2014, the annual money-weighted rate of return on pension plan
investments for each Plan was as follows:
General Employees’ Pension Plan
Police Officers’ Retirement System
Municipal Firefighters’ Pension Trust Fund
8.22%
9.75%
10.36%
The money-weighted rate of return expresses investment performance, net of pension plan investment
expense, adjusted for the changing amounts actually invested. A schedule of each Plan’s investment
returns is presented on page 98.
a.
General Employees’ Pension Plan
Investment Policy
In fulfilling their fiduciary responsibility, the Pension Board of Trustees (the Board) for the General
Employees’ Pension Plan (GEPP) established an Investment Policy Statement and directed that it apply to
all assets under their control. The general investment objective is to obtain a reasonable total rate of return
– defined as interest and dividend income plus realized and unrealized capital gains or losses –
commensurate with the Prudent Investor Rule and any other applicable ordinances and statutes. The Board
employs investment professionals to oversee and invest the assets of the Plan. The Board, in performing
their investment duties, shall comply with the fiduciary standards set forth in the Employee Retirement
Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1) (A) – (C).
47
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
a.
General Employees’ Pension Plan (continued)
Investment Policy (continued)
It is the Board’s intention to review the Investment Policy Statement at least annually subsequent to the
actuarial report and to amend the statement to reflect any changes in philosophy, objectives or
guideline. If, at any time, the investment manager feels that the specific objectives defined in the
Investment Policy Statement cannot be met, or the guidelines constrict performance, the Board shall be
notified in writing.
Investment policy decisions may be recommended by the investment manager, reviewed by the Plan’s
legal counsel for compliance with applicable law, and approved by a majority vote of the Board. Upon
adoption by the Board, the Investment Policy Statement shall be promptly filed with the Florida
Department of Management Services, the City, and the Plan’s actuary. The effective date of the
Investment Policy Statement shall be thirty days following the filing date with the City. As of September
30, 2014, the effective Investment Policy Statement was adopted on June 19, 2013 and there were no
amendments in the current fiscal year.
Target Allocations
In order to provide for a diversified portfolio, the Board engaged investment professional(s) to manage
and administer the fund. The investment managers are responsible for the assets and allocation of
their mandate only. They will monitor the aggregate asset allocation of the portfolio and rebalance to
the target asset allocation based on market conditions. If at the end of any calendar quarter, the
allocation of an asset class falls outside of its allowable range, barring extenuating circumstances, the
asset allocation will be rebalanced into the allowable range. The Board does not intend to exercise
short-term changes to the target allocation.
The following was the Board’s adopted asset allocation policy as of September 30, 2014:
Target
Range
Domestic Equity
Asset Class
45%
40% - 60%
Russell 3000
Benchm ark Index
International Equity
15%
5% - 20%
MSCI-ACW ex. US
Broad Market Fixed Income
20%
20% - 30%
Barclays Capital Intermediate Aggregate
Real Return Assets *
5%
0% - 10%
Barclays Capital TIPS 1 - 10 Year
Global Fixed Income *
5%
0% - 10%
Citigroup World Government Bond Index
Real Estate *
10%
0% - 15%
NCREIF NFI-ODCE
* Benchmark w ill default to "broad market fixed income" if these portfolios are not funded. Targets and
ranges above are based on market value of total Plan assets.
Authorized investments comprise domestic securities, domestic fixed income investment grade bonds,
treasury inflation protected securities, pooled funds, real estate, and foreign securities. The board may
make investments in the money market fund or short-term investment fund options provided by the
Plan’s custodian with the provision that those investments have a minimum rating of A1/P1, or its
equivalent, by a major credit rating service. Eighty-five (85%) of the fixed income investments shall
have a minimum rating of investment grade or higher as reported by a major credit rating service.
No investments shall be permitted in any investment not specifically allowed as part of the policy or
illiquid investments, as described in Chapter 215.47, Florida Statutes.
48
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
a.
General Employees’ Pension Plan (continued)
Concentration of Credit Risk
Not more than 5% of the Plan’s assets, at the time of purchase, shall be invested in the common stock,
capital stock or convertible stock of any one issuing company, nor shall the aggregate investment in any
one issuing company exceed 5% of the outstanding capital stock of the company. For fixed income, the
value of bonds issued by any single corporation shall not exceed 3% of the total fund. Investments in
corporate common stock and convertible bonds shall not exceed 70% of the market value of the Plan’s
assets. Foreign securities, regardless of asset class, shall not exceed 25% of the market value of the
Plan’s assets.
The following investments represent 5% or more of the Plan’s fiduciary net position and are not issued
or explicitly guaranteed by the U.S. government:
Investm ent
Corporate stock
$
Mortgage backed securities *
Am ount of
% of
Investm ent
Net Position
34,755,015
38.35%
7,686,961
8.48%
14,468,465
15.97%
11,870,496
13.10%
71,818,669
79.25%
Mutual funds:
Fixed income **
Commingled funds:
International equity
Total Plan investments 5% or more of the
fiduciary net position
$
* Of the 8.48% for the mortgage backed securities, 21.3%, or $1,637,323, of the total investment of
$7,686,961 was not backed by the U.S. government.
** Of the 15.97% for the fixed income mutual funds, 7.2%, or $1,041,729, of the total investment of
$14,468,465 was not backed by the U.S. government.
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the General
Employees’ Pension Plan will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. Pursuant to Section 112.661 (10), Florida Statutes, the
Plan’s investment policy states that securities should be held with a third-party custodian, and all
securities purchased by, and all collateral obtained by the pension fund should be designated as an
asset of the Plan. As of September 30, 2014, the Plan’s investment portfolio was held with a third-party
custodian as required by the statute.
Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an
investment or a deposit. As noted above, the Plan’s investment policy states that foreign securities,
regardless of asset class, shall not exceed 25% of the market value of the Plan’s assets. The Plan’s
actual investment in foreign securities at September 30, 2014 was $5,146,623 or 5.7% of the Plan’s
total assets at market value. The Plan also held foreign investments comprised of commingled funds in
international equity, which amounted to $11,870,496 or 13.1% of the Plan’s total assets at fair market
value as of September 30, 2014.
49
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
a.
General Employees’ Pension Plan (continued)
At September 30, 2014, the General Employees’ Pension Plan investments, other than stocks, stock
related funds, mutual funds and commingled funds, were as follows:
Investment Type
Money market
U.S. government and agency securities
Municipal bonds
Corporate bonds
Mortgage backed securities
Asset backed securities
Private placements
International securities:
Bonds and notes
Total Investments
b.
Fair Value
$
3,704,728
1,423,205
1,087,154
3,494,326
7,686,961
2,351,301
40,110
$
3,704,728
91,640
62,559
18,922
-
$
3,877,849
852,526
$ 20,640,311
Investment Maturities (in Years)
1-5
6-10
Less than 1
$
398,005
476,216
2,018,669
310,487
719,758
-
$
4,189,526
-
$
1,025,200
555,050
1,153,777
958,721
522,207
-
$
4,801,090
266,391
More than 10
$
55,888
230,240
6,355,194
1,090,414
40,110
$
7,771,846
586,135
-
Municipal Firefighters’ Pension Trust Fund
Investment Policy
In fulfilling their fiduciary responsibility, the Pension Board of Trustees (the Board) for the Municipal
Firefighters’ Pension Trust Fund (MFPTF) established an Investment Policy Statement and directed that
it apply to all assets under their control. The general investment objective is to obtain a reasonable total
rate of return – defined as interest and dividend income plus realized and unrealized capital gains or
losses – commensurate with the Prudent Investor Rule and any other applicable ordinances and
statutes. The Board employs investment professionals to oversee and invest the assets of the Plan.
The Board, in performing their investment duties, shall comply with the fiduciary standards set forth in
the Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1) (A) – (C).
It is the Board’s intention to review the Investment Policy Statement at least annually subsequent to the
actuarial report and to amend the statement to reflect any changes in philosophy, objectives or
guideline. If, at any time, the investment manager feels that the specific objectives defined in the
Investment Policy Statement cannot be met, or the guidelines constrict performance, the Board shall be
notified in writing.
Investment policy decisions may be recommended by the investment manager, reviewed by the Plan’s
legal counsel for compliance with applicable law, and approved by a majority vote of the Board. Upon
adoption by the Board, the Investment Policy Statement shall be promptly filed with the Florida
Department of Management Services, the City, and the Plan’s actuary. The effective date of the
Investment Policy Statement shall be thirty days following the filing date with the City. As of September
30, 2014, the effective Investment Policy Statement was adopted on June 13, 2013 and there were no
amendments in the current fiscal year.
Target Allocations
In order to provide for a diversified portfolio, the Board engaged investment professional(s) to manage
and administer the fund. The investment managers are responsible for the assets and allocation of
their mandate only. They will monitor the aggregate asset allocation of the portfolio and rebalance to
the target asset allocation based on market conditions. If at the end of any calendar quarter, the
allocation of an asset class falls outside of its allowable range, barring extenuating circumstances, the
50
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
b.
Municipal Firefighters’ Pension Trust Fund (continued)
Target Allocations (continued)
asset allocation will be rebalanced into the allowable range. The Board does not intend to exercise
short-term changes to the target allocation.
The following was the Board’s adopted asset allocation policy as of September 30, 2014:
Target
Range
Domestic Equity
Asset Class
50%
40% - 65%
Russell 3000
Benchm ark Index
International Equity
15%
5% - 20%
MSCI-ACW ex. US
Broad Market Fixed Income
17%
20% - 30%
Barclays Aggregate
Global Fixed Income *
5%
0% - 10%
Citigroup World Government Bond Index
Alternatives *
3%
0% - 5%
NCREIF Timber
Real Estate *
10%
0% - 15%
NCREIF NFI-ODCE
* Benchmark w ill default to "broad market fixed income" if these portfolios are not funded. Targets and
ranges above are based on market value of total Plan assets.
Authorized investments comprise domestic securities, domestic fixed income investment grade bonds,
treasury inflation protected securities, pooled funds, real estate, and foreign securities. The board may
make investments in the money market fund or short-term investment fund options provided by the
Plan’s custodian with the provision that those investments have a minimum rating of A1/P1, or its
equivalent, by a major credit rating service. Eighty-five (85%) of the fixed income investments shall
have a minimum rating of investment grade or higher as reported by a major credit rating service.
No investments shall be permitted in any investment not specifically allowed as part of the policy or
illiquid investments, as described in Chapter 215.47, Florida Statutes. Direct investment in ‘Scrutinized
Companies’ identified in the periodic publication by the State Board of Administration is prohibited.
Concentration of Credit Risk
Not more than 5% of the Plan’s assets, at the time of purchase, shall be invested in the common stock,
capital stock or convertible stock of any one issuing company, nor shall the aggregate investment in any
one issuing company exceed 5% of the outstanding capital stock of the company. For fixed income, the
value of bonds issued by any single corporation shall not exceed 3% of the total fund. Investments in
corporate common stock and convertible bonds shall not exceed 75% of the fund assets at market
value. Foreign securities, regardless of asset class, shall not exceed 25% of the market value of the
Plan’s assets.
The following investments represent 5% or more of the Plan’s fiduciary net position and are not issued
or explicitly guaranteed by the U.S. government:
51
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
b.
Municipal Firefighters’ Pension Trust Fund (continued)
Concentration of Credit Risk (continued)
Investm ent
Corporate stock
Am ount of
% of
Investm ent
Net Position
$
Corporate bonds
34,376,772
47.80%
4,658,040
6.48%
9,024,005
12.55%
8,065,067
11.22%
56,123,884
78.05%
Mutual funds:
International equity
Commingled funds:
Real estate
Total Plan investments 5% or more of the
fiduciary net position
$
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the Firefighters’
Pension Plan will not be able to recover the value of its investments or collateral securities that are in
the possession of an outside party. Pursuant to Section 112.661 (10), Florida Statutes, the Plan’s
investment policy states that securities should be held with a third-party custodian, and all securities
purchased by, and all collateral obtained by the pension fund should be designated as an asset of the
Plan. As of September 30, 2014, the Plan’s investment portfolio was held with a third-party custodian
as required by the statute.
Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates that will adversely affect the fair value
of an investment or a deposit. As noted above, the Plan’s investment policy states that foreign
securities, regardless of asset class, shall not exceed 25% of the market value of the Plan’s assets.
The Plan’s foreign investment as of September 30, 2014, comprised mutual funds in international
equity, which amounted to $9,024,005 or 12.5% of the Plan’s total assets at fair market value.
At September 30, 2014, the Municipal Firefighters’ Pension Trust Fund pension plan investments, other
than stocks, mutual funds and commingled funds, were as follows:
Investment Type
Money market
U.S. government and agency securities
Municipal bonds
Corporate bonds
Asset backed securities
Total Investments
Fair Value
$
Less than 1
Investment Maturities (in Years)
1-5
6-10
More than 10
3,419,000
1,302,376
837,243
4,658,040
1,757,115
$
3,419,000
50,011
101,507
-
$
675,064
1,447,612
417,237
$
534,051
2,093,231
1,339,878
$
43,250
837,243
1,015,690
-
$ 11,973,774
$
3,570,518
$
2,539,913
$
3,967,160
$
1,896,183
52
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
c.
Police Officers’ Retirement System
Investment Policy
The Board of Trustees (the Board) for the Police Officers’ Retirement System (PORS) established a
Statement of Investment Policy that applies to those funds under control of the Board. The investment
objective of the Board is to preserve the purchasing power of the Fund’s assets and earn an above
average real rate of return (after inflation) over the long term while minimizing, to a reasonable extent,
the short term volatility of results. The Board determined that one or more outside investment
managers shall be retained to assure that all investments are managed in both a prudent and
professional manner and in compliance with the stated investment guidelines. In performing its
investment duties, the Board and its investment managers shall comply with the fiduciary standards set
forth in the Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1) (A) –
(C).
It is the intention of the Board to review the Investment Policy Statement and its addenda periodically
and to amend it to reflect any changes in philosophy or objectives. However, if at any time the
investment managers believe that the specific objectives defined herein cannot be met or that the
guidelines unnecessarily constrict performance, the Board shall be so notified in writing.
As of September 30, 2014, the effective Investment Policy Statement was adopted on June 5, 2014.
Changes to the Plan’s investment policy comprise the inclusion of publicly traded master limited
partnerships as an authorized investment.
Investment policy decisions may be recommended by the investment manager, reviewed by the Plan’s
legal counsel for compliance with applicable law, and approved by a majority vote of the Board.
Target Allocations
To achieve the investment objectives, the Board, as named fiduciary of the PORS Pension Fund, seeks
to create a well-diversified and balanced portfolio of equity, fixed income, real estate, convertibles and
money market securities. The Board determines that one or more outside investment managers shall
be retained to assure that all investments are managed in both a prudent and professional manner and
in compliance with the stated investment guidelines. Each investment manager is responsible only for
those assets under their management. It may be necessary to rebalance the portfolio periodically in
order to maintain policy targets and diversification. The Board monitors each component of the Plan
periodically and makes adjustments as necessary.
The following was the Board’s adopted asset allocation policy as of September 30, 2014:
Asset Class
Domestic Large Cap Equities
Target
Range
32.5%
30% - 65%
Convertible Securities
10%
0% - 25%
Domestic Small/Mid Cap Equities
7.5%
5% - 20%
Master Limited Partnerships
5%
0% - 15%
Foreign Securities
15%
5% - 25%
Real Estate
5%
0% - 10%
Fixed Income Securities
25%
25% - 60%
Cash
0%
0% - 10%
53
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
c.
Police Officers’ Retirement System (continued)
Target Allocations (continued)
Authorized investments comprise equities, convertibles, publicly traded master limited partnerships, real
estate, fixed income and cash equivalent securities. Investments in equity securities and convertibles
shall be limited to easily and readily negotiable securities. All real estate investments shall be made
through participation in diversified commingled funds of real properties or real estate securities. Such
funds shall be broadly diversified as to property type and location.
The fixed income portfolio shall comply with the following guidelines:
•
Investments in all corporation fixed income securities shall be limited to those securities rated BBB
or higher by Standard & Poor’s or Baa by Moody’s rating services. Investments in securities rated
below A will be limited to 20% of the total fixed income portfolio. Fixed income securities that are
downgraded below the minimum rating by both entities shall be sold at the earliest beneficial
opportunity.
•
Investments in collateralized mortgage obligations (CMOs) shall be backed by the full faith of the
U.S. government, an agency thereof, or that are rated AAA by a major rating service. The CMOs
shall be restricted to planned amortization class, non-accelerated securities or very accurately
defined maturity securities.
Investment managers may invest only in the following short-term investment vehicles:
•
The money market fund or short-term investment fund options provided by the Fund’s custodian.
•
Direct obligations of the U.S. government, its agencies or instruments with a maturity of one year or
less.
•
Commercial paper issued by U.S. corporations that has a maturity of 270 days or less and that is
rated A-1 by Standard & Poor’s or P-1 by Moody’s.
Prohibited investments include repurchase agreements, 144A convertible securities, and direct
investments in interest only or principal only CMOs, precious metals, limited partnerships of any kind,
real estate, venture capital, futures contracts, options contracts, trading on margin and short sales. If an
investment becomes illiquid or in the event that the Fund acquires an illiquid investment, the Board shall
develop the methodology for valuation as set forth in the criteria in Section 215.47(6), Florida Statutes.
Concentration of Credit Risk
The Board developed a diversified investment program to control the risk of loss resulting from over
concentration in a specific maturity, issuer, instrument, dealer or bank through which financial
instruments are bought and sold. Measures to control the risk include the following:
•
•
•
Equity securities: Investments in equity securities, including convertibles, shall not exceed 70% (at
cost value) or 75% (at market value) of the Fund’s total portfolio; no more than 25% of the Fund’s
total market value may be invested in foreign equity securities; no more than 5% at market value of
the total equity portfolio may be invested in the shares of a single corporate issuer; investments in
those corporations whose stock has been publicly traded for less than one year is limited to 15% of
the equity portfolio; investments issued by corporations with total market capitalization of $3 billion
or less shall not exceed 20% of total equity portfolio value (at market).
Convertible securities: All such securities shall be classified as equities and shall be limited to 25%
of the Fund’s total portfolio value; no more than 10% at market value of an investment manager’s
convertible portfolio may be invested in the shares of a single corporate issuer; investments in
foreign convertibles are limited to 25% (at market) of the investment manager’s portfolio.
Corporate fixed income securities: No more than 25% of the Fund’s total market value may be
invested in foreign equity securities; no more than 10% at market of an investment manager’s total
fixed income portfolio shall be invested in the securities of any single corporate issuer.
54
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
c.
Police Officers’ Retirement System (continued)
Concentration of Credit Risk (continued)
•
•
•
Investments in CMOs shall be limited to 15% of the market value of the investment managers’ total
portfolio.
Master limited partnerships (MLP): No more than 10% at market value of an investment manager’s
MLP may be invested in a single issuer unless the issuer makes up more than 10% of the Alerian
MLP Index; no more than 15% of the total fund assets (at market value) may be invested in MLPs.
Investments in real estate shall not exceed 15% at market valuation of the value of total Fund
assets.
The following investments represent 5% or more of the Plan’s fiduciary net position and are not issued
or explicitly guaranteed by the U.S. government:
Investm ent
Corporate stock
$
Convertible bonds
Am ount of
% of
Investm ent
Net Position
30,577,123
32.17%
6,539,493
6.88%
Mutual funds:
Equity
International equity
7,079,252
7.45%
10,006,922
10.53%
6,392,577
6.72%
67,082,550
70.57%
Commingled funds:
Real estate
Total Plan investments 5% or more of the
fiduciary net position
$
* Of the 6.82% for the mortgage backed securities, 100% of the total investment of $6,487,183 was
backed by the U.S. government.
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the Police Officers’
Pension Plan will not be able to recover the value of its investments or collateral securities that are in
the possession of an outside party. Pursuant to Section 112.661 (10), Florida Statutes, the Plan’s
investment policy states that securities should be held with a third-party custodian, and all securities
purchased by, and all collateral obtained by the pension fund should be designated as an asset of the
Plan. As of September 30, 2014, the Plan’s investment portfolio was held with a third-party custodian
as required by the statute.
Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an
investment or a deposit. As noted above, the Plan’s investment policy states that no more than 25% of
the Fund’s total market value may be invested in foreign equity securities and investments in foreign
convertibles are limited to 25% (at market) of the investment manager’s portfolio. The Plan’s foreign
investment as of September 30, 2014 comprised mutual funds in international equity, which amounted
to $10,006,922 or 12.0% of the Plan’s total assets at fair market value.
55
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 4 – CASH DEPOSITS AND INVESTMENTS (continued)
2.
City’s Pension Plan Investments (continued)
c.
Police Officers’ Retirement System (continued)
At September 30, 2014, the Police Officers’ Retirement System pension plan investments, other than
stocks and stock related funds, were as follows:
Investment Type
Fair Value
Investment Maturities in Years
1-5
6-10
Less than 1
More than 10
Money market
U.S. government and agency securities
Corporate bonds
Convertible bonds
Convertible preferred
Mortgage backed securities
$
791,000
9,088,991
2,373,283
6,539,493
1,445,433
6,487,183
$
791,000
265,783
1,445,433
-
$
3,572,610
183,699
3,109,159
2,271
$
5,516,381
2,189,584
1,172,104
5,040,844
$
1,992,447
1,444,068
Total investments
$
26,725,383
$
2,502,216
$
6,867,739
$
13,918,913
$
3,436,515
NOTE 5 – RESTRICTED ASSETS
Certain assets of the proprietary funds at September 30, 2014 are restricted for certain purposes. These assets
included cash and cash equivalents, investments and interest receivable.
Purpose
Customer deposits
Revenue bonds debt service accounts
Impact fee capital contributions accounts
Revenue bond renewal and replacement accounts
Revenue bond and note construction accounts
Capital project accounts
Other purposes
Total restricted assets
Water Wastewater
Fund
$
6,369,853
14,552,643
3,144,674
8,864,065
9,421,042
1,732,674
$
44,084,951
56
Solid Waste
Fund
$
$
30,937
322,772
22,798
376,507
Nonmajor
Business-type
Funds
$
29,513
150,783
988,029
161,737
240,327
$
1,570,389
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 6 – RECEIVABLES
Amounts are aggregated into a single accounts receivable (net of allowance for uncollectible) line for certain funds
and aggregated columns. Receivables as of September 30, 2014 for the City’s governmental activities, individual
major governmental funds, nonmajor governmental funds in the aggregate, internal service funds and applicable
allowances for uncollectible accounts are as follows:
Receivables:
Accounts
Utility Taxes and Fees
Code Enforcement
Accounts, gross
$
Less: Allowance for uncollectibles
Accounts, net
Total net receivables
428,798
1,985,750
1,169,848
3,584,396
$
102,825
102,825
(812,865)
2,771,531
Notes
Less: Allowance for uncollectibles
Notes, net
Internal
Service
Fund
Nonmajor
Governmental
Funds
General
Fund
1,271
1,271
102,825
$ 2,771,531
$
5,387,807
(5,387,807)
$
102,825
Total
$
$
532,894
1,985,750
1,169,848
3,688,492
1,271
(812,865)
2,875,627
-
5,387,807
(5,387,807)
-
1,271
$
2,875,627
Significant Uncollectible
The allowance for uncollectible accounts receivable in the General Fund includes $179,501 owed to the City of Fort
Myers by the Dunbar Industrial Action Development Corporation (DIAD), resulting from State Housing Initiative
Program (SHIP) funds, and $599,731 in allowance for code enforcement fees.
The amount of $5,387,807 for the allowance for uncollectible notes receivable in the Nonmajor Governmental Funds
relates to mortgage assistance provided by the Attainable Workforce Housing Fund, State Housing Initiative
Partnership (SHIP) Fund, and Community Development Block Grant Fund. The Attainable Workforce Housing Fund
provides loans to eligible residents with income of 150% of the median income for Lee County. The SHIP program
provides a deferred payment loan with no interest to eligible recipients to fund the gap between what the financial
institution will lend and what the homebuyer can afford to pay for newly constructed single-family homes and existing
homes within the City.
Receivables for the City’s business-type activities, including individual major funds and allowances for uncollectible
accounts, are as follows:
Water Wastewater
Fund
Receivables:
Accounts, gross
Less: Allowance for uncollectibles
Accounts, net
$
$
Solid Waste
Fund
7,460,209
(860,531)
6,599,678
$
$
57
1,174,431
(149,661)
1,024,770
Other
Business-Type
Funds
$
$
310,721
(206,649)
104,072
Total
$
$
8,945,361
(1,216,841)
7,728,520
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 7 – ASSETS HELD FOR RESALE
Community Redevelopment Agency
The asset held for resale in the Community Redevelopment Agency (CRA) fund consists of the McCollum Hall
property acquired by the CRA on May 13, 2008 to preserve the existing historical building and eventually sell the
property to a private developer for further restoration and revitalization. The purchase by the CRA consisted of an
upfront payment of $217,335 and twenty-four monthly payments totaling $165,165 at an interest rate of 6.000%.
The carrying value of property held for resale at September 30, 2014 is $258,010, reflects the value of the just and
assessed property data according to Lee County Property Appraiser 2014 tax roll. The amount of the asset held for
resale is offset by nonspendable fund balance in the CRA fund.
After soliciting proposals, the FMRA chose Urban Development Solutions, Inc. (UDS) based on the company’s history
in Pinellas and Manatee Counties. They are a 501(c) 3 development firm dedicated to helping municipalities, nonprofits, and private firms develop and finance commercial projects in underserved and low-income markets. On June
19, 2012, the FMRA and UDS signed a Development Agreement to preserve, renovate and revitalize McCollum Hall.
City Council supported the project by approving a resolution on October 15, 2012 to apply for a Community
Development Block Grant (CDBG) Section 108 Loan for $1,000,000 to provide some of the necessary financing for
the restoration project. UDS is in the process of seeking additional funds to replace the historic preservation tax
credits funding portion of the capital stack. As of September 30, 2014, no funds have been received from the Section
108 Loan by the City or UDS.
Community Development Block Grant
The U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP) is part
of the national effort to restore homes and renew neighborhoods affected the hardest by the recent housing crisis.
The NSP signals opportunity for homebuyers and stronger neighborhoods with reinvestments that go straight to the
heart of the communities.
In fiscal year 2009, the City was allocated $2,297,318 of Neighborhood Stabilization Program 1 (NSP1) funding,
which was provided through HUD’s Community Development Block Grant (CDBG) Program under the Housing and
Economic Recovery Act of 2008. In fiscal year 2011, the City received $1,537,642 from an NSP 3 funding allocation,
which was released by HUD as authorized in the Dodd Frank Wall Street Reform and Consumer Protection Act to
continue to assist state and local governments in the redevelopment of abandoned and foreclosed residential
properties.
The City is utilizing NSP funds in the following ways:
•
•
•
•
•
•
Purchase foreclosed and vacant single or multi-family residential properties in target areas,
Improve property condition via rehabilitation,
Incorporate energy saving features,
Resell to households with income less than 120% AMI (Area Median Income)
Provide housing assistance to households below 50% AMI, which includes affordable rental units,
Offer financial aid in the form of a silent second mortgage and help with reasonable closing costs.
With the NSP 1 funds, the City set a benchmark to fund the acquisition and rehabilitation of approximately 25 housing
units for households at or below 120 percent of area median income. The expected timeline for the City’s NSP 1
Plan was February 2009 through July 2013, and a rehabilitation project was considered complete upon transfer to an
eligible homeowner or when the unit is rented to an eligible tenant. As of September 30, 2014, the City held four
rehabilitated single-family homes, which comprise new construction on foreclosed, city-owned property, as assets
held for resale for a total of $300,000. These four properties, which complete the NSP 1 Plan, are currently being
rented while renters improve their credit scores and attain bank loans.
The NSP 3 grant application contained more defined target areas than was required by the NSP1 grant notice. It is
expected that the City will acquire, rehab and sell at least twelve housing units with NSP 3 funds. In fiscal year 2012,
the City completed construction of five new single-family homes, and sold two of those homes in fiscal year 2013 and
two homes in fiscal year 2014. Rehabilitation projects comprised three properties in fiscal year 2012 and three
58
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 7 – ASSETS HELD FOR RESALE (continued)
Community Development Block Grant (continued)
properties in fiscal year 2013. Of the six rehabilitated properties, the City sold one property in fiscal year 2013 and
five properties in fiscal year 2014. The value of the remaining single-family home is $75,000 as an asset held for
resale as of September 30, 2014.
The City also earmarked $574,329 for the acquisition, rehabilitation, financing, and resale of multi-family rental
properties. After the completion of the rehabilitation of these properties, the units will be transferred to local non-forprofit agencies to provide rental assistance to households with incomes less than 50% AMI.
During fiscal year 2009, one multi-family rental unit was purchased for $217,872 with NSP 1 funds and rehabilitated
with the intent for resale. On September 17, 2012, City Council approved a Community Development Block Grant
Neighborhood Stabilization Program Subrecipient Agreement with Goodwill Industries of Southwest Florida, Inc. for
the property management of this unit. The agreement provides for Goodwill to receive clear title in 2027 if all
obligations are fulfilled. In addition to other requirements, Goodwill must provide quarterly reports to the City through
2017 and yearly reporting for the remaining years of the Subrecipient Agreement. If Goodwill fails to meet the
agreement guidelines, the property will revert back to the City. Based on agreement by both parties, a Quit Claim
Deed was issued by the City on November 8, 2012 and filed with the Lee County Clerk of Circuit Court.
NOTE 8 – CAPITAL ASSETS
Capital assets activity for the year ended September 30, 2014, was as follows:
Beginning
Balance
Additions and
Transfers In
Ending
Balance
Retirements and
Transfers Out
Governmental Activities
Capital assets, not being depreciated:
Land
Antiques and Exhibits (1)
Construction in progress
Intangibles-easements
Total capital assets, not being depreciated
$
Capital assets, being depreciated:
Buildings
Improvements
Equipment
Intangibles-software
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Improvements
Equipment
Intangibles-software
Infrastructure
Total accumulated depreciation
Total capital assets being depreciated, net
Total governmental activities capital assets, net
$
25,384,429
251,871
3,891,004
3,560,054
33,087,358
$
32,937
864,037
896,974
$
(32,025)
(818,002)
(850,027)
$
25,385,341
251,871
3,937,039
3,560,054
33,134,305
22,204,762
45,809,872
24,133,176
128,100
264,303,759
356,579,669
304,675
408,183
1,678,870
17,487
1,358,785
3,768,000
(946,235)
(946,235)
22,509,437
46,218,055
24,865,811
145,587
265,662,544
359,401,434
(10,540,809)
(18,907,538)
(20,752,634)
(116,100)
(183,783,361)
(234,100,442)
(650,469)
(2,818,347)
(1,291,748)
(12,583)
(5,988,502)
(10,761,649)
910,619
910,619
(11,191,278)
(21,725,885)
(21,133,763)
(128,683)
(189,771,863)
(243,951,472)
122,479,227
(6,993,649)
(35,616)
115,449,962
155,566,585
59
$
(6,096,675)
$
(885,643)
$
148,584,267
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 8 – CAPITAL ASSETS (continued)
Depreciation expense was charged to functions/programs of the governmental activities of the primary government
as follows:
Governmental Activities:
General government
Public Safety:
Police
Fire
Protective inspections
Physical environment
Transportation
Economic environment
Culture and recreation
Total depreciation expense - governmental activities
$
2,089,985
$
120,278
338,030
24,456
875,052
6,101,156
235,111
977,581
10,761,649
Beginning
Balance
Additions and
Transfers In
Retirements and
Transfers Out
Ending
Balance
Business-Type Activities
Capital assets, not being depreciated:
Land
Intangibles
Construction in progress
Total capital assets, not being depreciated
$
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Equipment
Utility Systems
Antiques and Exhibits (1)
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Equipment
Utility Systems
Antiques and Exhibits (1)
Total accumulated depreciation
Total capital assets being depreciated, net
Total business-type activities capital assets, net
$
3,788,143
183,610
4,315,362
8,287,115
5,526
609,602
615,128
(1,726)
(3,837,801)
(3,839,527)
93,193,617
23,602,527
20,590,459
383,523,433
160,500
521,070,536
8,422,086
2,480,981
14,837,064
25,740,131
(940,000)
(940,000)
93,193,617
32,024,613
22,131,440
398,360,497
160,500
545,870,667
(55,851,344)
(9,860,379)
(14,036,154)
(120,805,757)
(160,500)
(200,714,134)
(3,196,037)
(737,644)
(1,973,562)
(10,376,720)
(16,283,963)
938,162
938,162
(59,047,381)
(10,598,023)
(15,071,554)
(131,182,477)
(160,500)
(216,059,935)
320,356,402
9,456,168
328,643,517
(1)
$
$
10,071,296
$
(1,838)
$
(3,841,365)
3,788,143
187,410
1,087,163
5,062,716
329,810,732
$
334,873,448
The City owns various collections of works of art, historical treasures, educational exhibits and similar assets that are housed in the
Imaginarium and Edison-Ford Estates. In compliance with the City’s Capital Asset Capitalization Policy, the City capitalizes the collections.
60
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 9 – ACCRUED LIABILITIES AND UNEARNED REVENUE
1.
Accrued Liabilities
Accrued liabilities at September 30, 2014 were as follows:
Due to
Fiduciary Funds
Salaries and
Benefits
Governmental Activities:
General Fund
Revenue Bonds and Notes Fund
Transportation Capital Projects
Nonmajor Governmental Funds
Internal Service Fund
Total Governmental Activities
Business-type activities:
Water-Wastewater Fund
Solid Waste Fund
Nonmajor Business-type Funds
Total Business-type Activities
$
$
4,055,078
4,055,078
$
-
$
$
$
$
Other
Liabilities
362,232
362,232
$
-
$
$
$
278,801
15,000
8,000,000
14,498
120,043
8,428,342
89,774
5,344
57,622
152,740
$
Total
$
4,696,111
15,000
8,000,000
14,498
120,043
$ 12,845,652
$
89,774
5,344
57,622
152,740
$
An accrued liability of $3.0 million in the Transportation Capital Projects Fund relates to certain buyback provisions in
two Developer Agreements that became effective on January 10, 2014. Certain events transpired that reduced the
Developer’s value of total impact fee credits and the City must buy back 70% of those credits. The maximum annual
buyback amount is $3.0 million and the remaining annual payments are due from the City to the Developer on the
anniversary date of the first payment, July 9, 2014. Insufficient information exists at the date of this report to
reasonably determine the total amount due to the Developer. As a result, the City recorded a liability of $3.0 million in
the governmental fund financial statements as of September 30, 2014 to recognize the liability for the second
payment due in July 2015. The City is currently negotiating with the Developers and the County to determine the final
adjustment amounts.
2.
Unearned Revenue
As a result of implementing Governmental Accounting Standards Board Statement No. 65, Items Previously Reported
as Assets and Liabilities, revenues previously recorded as deferred revenue in the governmental funds until both
measurable and available are reported as deferred inflows of resources until such time the revenue becomes
available. The governmental fund financial statements may also report unearned revenue from receivables for
revenues that are not received within the availability period to liquidate liabilities for the current period. The
components of unearned revenue as of September 30, 2014 are as follows:
General
Fund
Unearned revenues:
Special Assessments
Code Enforcement
Rental income
Reimbursable expenses
Developer contributions
Grant receipts
Total Unearned revenues
$
$
8,685
562,039
46,897
21,434
639,055
Transportation
Capital
Projects
$
$
66,000
66,000
61
General
Capital
Projects
$
$
258,724
258,724
Nonmajor
Governmental
Funds
$
$
78,050
224,869
302,919
Total
$
$
8,685
562,039
46,897
21,434
78,050
549,593
1,266,698
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS
The City oversees three separate single-employer defined benefit plans: the General Employees’ Pension Plan that
covers full-time City employees and civilian police department employees; the Police Officers’ Retirement System for
non-civilian Police Department employees, and; the Municipal Firefighters’ Pension Trust Fund for City firefighters
and Fire Department officers. Although an outside firm administers each plan, the plans are sponsored by and
fiscally dependent on the City.
A board of trustees governs each plan, with each board consisting of seven trustees. These plans are maintained as
pension trust funds and included as part of the City’s reporting entity. City ordinance and state law require
contributions be determined by actuarial studies at least every three years. Stand-alone financial reports are not
issued.
1.
General Employees’ Pension Plan
Plan Description
Plan administration. The General Employees’ Pension Plan (GEPP) provides retirement, termination, disability and
death benefits to Plan members and their beneficiaries. The City Council has the authority to establish and amend
the benefit provisions of the Plan. The GEPP Board of Trustees comprises the president of the employees’
association; a trustee appointed by the employees’ association; a non-union City employee that is a member of the
retirement system, elected by the members of the retirement system that are non-union City employees; a trustee
appointed by the City Council; the City Manager or his designee, and; a sixth and seventh trustee appointed by the
other trustees.
Plan membership. As of October 1, 2013, the GEPP Plan membership consisted of the following:
Inactive plan members or beneficiaries currently receiving benefits
Inactive plan members entitled to but not yet receiving benefits
Active plan members
483
238
499
1,220
Benefits provided. The GEPP provides retirement, termination, disability and death benefits to Plan members and
their beneficiaries, as follows:
•
•
•
•
•
Normal retirement: Date of retirement is the first of month coincident with or next following the earlier of (1)
the attainment of age 62 and the completion of five years of credited service, (2) the age when credited
service plus age equals 80, or (3) 30 years of credited service, regardless of age. The benefit amount is
2.1% of the average final compensation multiplied by credited service prior to April 2, 1998 plus 3.0% of the
average final compensation multiplied by credited service after April 2, 1998 through September 17, 2012,
plus Rate A or B for service after September 17, 2012. Rate A is 1.8% and Rate B is 3.0%.
Early retirement: Date of retirement is the earlier of the attainment of age 55 and the completion of seven
years of credited service, or age 60 and five years of credited service. The benefit amount is determined
using the same calculations as for normal retirement and reduced by 4.0% for each year prior to normal
retirement.
Termination of employment: Vested members (members with seven or more years of credited service)
receive their accrued benefit payable at retirement age. Non-vested members (members with less than
seven years of credit service) receive a return of their accumulated contributions.
Disability benefits: Total and permanent benefits, as determined by the Board, for eligible members that
have at least five years of credited service. The benefit amount is determined using the same calculations
as for normal retirement, based on total service and the average final compensation as of the date of
disability.
Pre-retirement death benefits: Vested benefits are paid for ten years at the member’s normal (unreduced)
or early (reduced) retirement date. Beneficiaries of non-vested members receive a return of their
accumulated contributions.
62
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
1.
General Employees’ Pension Plan (continued)
Benefits provided (continued)
Benefit terms provide for an annual 2.5% cost of living increase (COLA) for Tier 3 and Tier 4 members with at least
three years of increased member contributions. The COLA is payable to normal and early retirees, in addition to
disability retirees, vested terminated members, and joint pensioners and beneficiaries.
Tier 2 and Tier 4 members receive a supplemental benefit of $200 per month, payable for the retiree’s lifetime only
(not subject to the cost of living adjustments). Members must make additional contributions for a minimum of three
years for this benefit.
Contributions. Member contribution requirements are established by City Code Section 62-185, which may be
amended by the City Council. Member contributions vary based on the rate and tier selected by the employee. The
City is required to contribute, at an actuarially determined rate, the remaining amount required in order to pay current
costs and amortize unfunded past service costs, if any, as provided in Chapter 112, Florida Statutes. Administrative
costs of the GEPP are financed through plan contributions and investment earnings.
Three Year Trend Inform ation
Pension Plan
Annual Pension Cost
(APC)
Fiscal Year Ending
GEPP
9/30/2014
9/30/2013
9/30/2012
$
6,801,604
5,427,855
6,379,046
Percentage of APC
Contributed
100%
100%
100%
Net Pension
Obligation
$
-
Investments. In fulfilling their fiduciary responsibility, the Pension Board of Trustees (the Board) for the GEPP
established an Investment Policy Statement and directed that it apply to all assets under their control. Note 4, section
2, provides disclosure about the GEPP investment policy and related investments.
Deferred Retirement Option Program (DROP). City employees are eligible for the Deferred Retirement Option
Program (DROP) upon the satisfaction of normal retirement requirements. Participation in the DROP may not
exceed sixty months. At the member’s election, the rate of return may be (1) the actual net rate of investment return
(total return net of brokerage commissions, management fees and transaction costs) credited each fiscal quarter, or
(2) 3.0% per annum compounded monthly. Members may elect to change the form of return one time. Participating
members receive their distribution as a cash lump sum (options available) at the termination of employment. As of
September 30, 2014, the balance of the DROP amounts maintained by the GEPP was $1,962,303.
Net Pension Liability
The components of the net pension liability of the GEPP at September 30, 2014 were as follows:
Total pension liability
Plan fiduciary net position
GEPP net pension liability
Plan fiduciary net position as a percentage
of the total pension liability
$ 143,676,275
(90,622,674)
$ 53,053,601
63.07%
63
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
1.
General Employees’ Pension Plan (continued)
Actuarial assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2013,
updated to September 30, 2014, using the following actuarial assumptions applied to all periods included in the
measurement:
Inflation
Salary increases
Investment rate of return
3.0 percent
5.0 - 10.0 percent
7.75 percent, net of pension plan investment expense,
including inflation
Mortality rates were based on the RP-2000 Combined Healthy Table projected to valuation date for healthy lives and
the RP-2000 Disabled Table for disabled lives.
The actuarial assumptions used in the October 1, 2013 valuation were based on the results of an actuarial
experience study for the period 2002 – 2012.
The long-term expected rate of return on the GEPP investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expenses and inflation) are developed for each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset
class included in the GEPP’s target asset allocation as of September 30, 2014 (see the discussion of the GEPP’s
investment policy provided in Note 4) are summarized in the following table:
Asset Class
Domestic Equity
International Equity
Broad Market Fixed Income
Real Return Assets
Global Fixed Income
Real Estate
Long-Term Expected
Real Rate of Return
7.50%
8.50%
2.50%
2.50%
3.50%
4.50%
Discount Rate. The discount rate used to measure the total pension liability was 7.75 percent. The projection of
cash flows used to determine the discount rate assumed that Plan member contributions will be made at the current
contribution rate and that City contributions will be made at rates equal to the difference between actuarially
determined contribution rates and the member rate. Based on those assumptions, the GEPP’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 the GEPP investments was applied to all periods of projected benefit payments
to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension
liability of the GEPP, calculated using the discount rate of 7.75 percent, as well as what the GEPP’s net pension
liability would be it were calculated using a discount rate that is 1 percentage point lower (6.75%) or 1 percentage
point higher (8.75%) than the current rate:
GEPP net pension liability
1% Decrease
(6.75%)
Current Discount
Rate (7.75%)
$
$
69,543,736
64
53,053,601
1% Increase
(8.75%)
$
40,182,280
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
2.
Police Officers’ Retirement System
Plan Description
Plan administration. The Police Officers’ Retirement System (PORS) provides retirement, disability, death benefits
and cost of living adjustments to plan members and their beneficiaries. The City Council has the authority to
establish and amend the benefit provisions of the plan. The PORS Board of Trustees comprises the City Manager or
his designee; the Chief of Police of the City; three members of the retirement system that are elected by a majority of
police officers that are members of the retirement system, and; two trustees that are legal residents of the City,
appointed by the City Council upon nomination by the other five trustees.
Plan membership. As of October 1, 2013, the PORS Plan membership consisted of the following:
Inactive plan members or beneficiaries currently receiving benefits
Inactive plan members entitled to but not yet receiving benefits
Active plan members
143
9
167
319
Benefits provided. The PORS provides retirement, termination, disability, and death benefits to Plan members and
their beneficiaries, as follows:
•
•
•
•
•
Normal retirement: Date of retirement is the earlier of age 55 or the completion of twenty-five years of
credited service, regardless of age. The benefit amount is 3.24% of the average final compensation
multiplied by credited service prior to March 17, 2014 plus 3.0% for each year of credited service for years
after March 17, 2014. Supplemental benefits provide $150 per month that is payable for the lifetime of the
retiree. Any member that has accrued at least fifteen years of credited service as of March 17, 2014 shall
continue to be eligible for the $290 additional monthly benefit.
Early retirement: Date of retirement is the earlier of the attainment of age 45 and the completion of ten
years of credited service, or the completion of fifteen years of credited service. The benefit amount is the
accrued benefit, reduced 3.0% per year, plus the supplemental benefit.
Termination of employment: Vested members (members with five or more years of credited service) receive
their accrued benefit payable at the member’s election, on the otherwise early or normal retirement date or
refund of member contributions, with 3.75% interest. Non-vested members (members with less than five
years of credited service) receive a refund of their member contributions, with 3.75% interest.
Disability benefits: Total and permanent benefits, as determined by the Board. Members are covered from
the date of employment for service incurred disabilities and after five years of employment for non-service
incurred disabilities. The benefit amount is 3.24% of the average final compensation multiplied by credited
service for service earned prior to March 17, 2014 and 3% of the average final compensation multiplied by
credited service for service earned on and after March 17, 2014 (but not less than 42% of average monthly
earnings), plus the supplemental benefit, offset with workers’ compensation.
Pre-retirement death benefits: For members with credited service, death benefits for spouse and/or
dependent child are paid to the spouse as 1.62% of the average final compensation multiplied by credited
service and to each child as 0.324% of the average final compensation multiplied by credited service. The
overall maximum benefit to the spouse and children is 70% of the average final compensation. Preretirement death benefits for a member with no spouse and no children are paid by a refund of the member
contributions, with 3.75% interest. There is an alternative benefit to the beneficiaries of members that
decease after completing at least ten years of service. Those beneficiaries may elect to receive the
member’s accrued benefit for ten years at the member’s normal (unreduced) or early (reduced) retirement
date.
Benefit terms provide for a cost of living increase, as follows:
•
Members that retired after November 5, 1990 and prior to December 1, 2002 receive 3.0% at age 60 and
each October 1 thereafter.
65
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
2.
Police Officers’ Retirement System (continued)
Benefits provided (continued)
•
•
Members that retired after November 30, 2002 receive a 3.0% per year increase on the monthly benefit,
beginning at the earlier of 24 months following normal retirement eligibility or age 60.
Members that retired after March 17, 2014 receive a blended rate: 3.0% for benefits accrued before March
17, 2014 and 1.5% per year for benefits accrued beginning March 17, 2014 and after.
Contributions. Member contribution requirements are established by City Code Section 62-75, which may be
amended by the City Council. Members of the Plan are required to contribute 10% of their annual covered salary.
The City is required to contribute, at an actuarially determined rate, the remaining amount required in order to pay
current costs and amortized unfunded past service cost, if any, as provided in Chapter 112, Florida Statutes, less
amounts received from the State of Florida for insurance surcharges on policies sold within the City. The State’s
contribution to the PORS for fiscal year 2014 was $595,183. The City recognizes these on-behalf payments as
revenues and expenditures in the governmental funds financial statements.
Three Year Trend Inform ation
Pension Plan
Fiscal Year Ending
PORS (1)
9/30/2014
9/30/2013
9/30/2012
Annual Pension Cost
(APC)
10,605,960
9,897,942
9,491,235
Percentage of APC
Contributed
100%
100%
100%
Net Pension
Obligation
-
(1)
The amounts include applicable premium tax refunds from the State of Florida that w ere passed through the City to the respective
trust fund.
Investments. In fulfilling their fiduciary responsibility, the Pension Board of Trustees (the Board) for the PORS
established an Investment Policy Statement and directed that it apply to those funds under their control. Note 4,
section 2, provides disclosure about the PORS investment policy and related investments.
Deferred Retirement Option Program (DROP). PORS employees are eligible for the Deferred Retirement Option
Program (DROP) upon the satisfaction of normal retirement requirements. Participation in the DROP may not
exceed sixty months. At the member’s election, the rate of return may be (1) the actual net rate of investment return
(total return net of brokerage commissions, management fees and transaction costs) credited each fiscal quarter, or
(2) 3.0% per annum compounded monthly. Members may elect to change the form of return one time. Participating
members receive their distribution as a cash lump sum (options available) at the termination of employment. As of
September 30, 2014, the balance of the DROP amounts maintained by the PORS was $1,057,279.
Net Pension Liability
The components of the net pension liability of the PORS at September 30, 2014 were as follows:
Total pension liability
Plan fiduciary net position
PORS net pension liability
Plan fiduciary net position as a percentage
of the total pension liability
$ 151,534,357
(95,060,295)
$ 56,474,062
62.73%
66
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
2.
Police Officers’ Retirement System (continued)
Actuarial assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2013,
updated to September 30, 2014, using the following actuarial assumptions applied to all periods included in the
measurement:
Inflation
Salary increases
Investment rate of return
3.0 percent
6.0 percent
8.00 percent, net of pension plan investment expense,
including inflation
Mortality rates were based on the RP-2000 Table with no projection. Based on a study of over 650 public safety
funds, this Table reflects a 10% margin for future mortality improvements. Disabled lives set forward five years.
The actuarial assumptions used in the October 1, 2013 valuation were based on the results of an actuarial
experience study for the period 1987 – 2009.
The long-term expected rate of return on the PORS investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expenses and inflation) are developed for each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset
class included in the PORS’ target asset allocation as of September 30, 2014 (see the discussion of the PORS’
investment policy provided in Note 4) are summarized in the following table:
Asset Class
Domestic Equity
International Equity
Bonds
Convertibles
Private Real Estate
Master limited partnerships
Long-Term Expected
Real Rate of Return
7.80%
2.20%
3.70%
5.30%
4.90%
12.70%
Discount Rate. The discount rate used to measure the total pension liability was 8.00 percent. The projection of
cash flows used to determine the discount rate assumed that Plan member contributions will be made at the current
contribution rate and that City contributions will be made at rates equal to the difference between actuarially
determined contribution rates and the member rate. Based on those assumptions, the PORS’ 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 the PORS investments was applied to all periods of projected benefit payments
to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension
liability of the PORS, calculated using the discount rate of 8.00 percent, as well as what the PORS’ net pension
liability would be it were calculated using a discount rate that is 1 percentage point lower (7.00%) or 1 percentage
point higher (9.00%) than the current rate:
PORS net pension liability
1% Decrease
(7.00%)
Current Discount
Rate (8.00%)
$
$
76,476,636
67
56,474,062
1% Increase
(9.00%)
$
41,117,433
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
3.
Municipal Firefighters’ Pension Trust Fund
Plan Description
Plan Administration. The Municipal Firefighters’ Pension Trust Fund (MFPTF) provides retirement, termination,
disability and death benefits to Plan members and their beneficiaries. The City Council has the authority to establish
and amend the benefit provisions of the plan. The MFPTF Board of Trustees comprises the Mayor of the City; the
Fire Chief of the City; three members of the retirement system that are elected by a majority of firefighters that are
members of the retirement system, and; two trustees that are legal residents of the City, appointed by the City
Council upon nomination by the other five trustees.
Plan membership. As of October 1, 2013, the MFPTF Plan membership consisted of the following:
Inactive plan members or beneficiaries currently receiving benefits
Inactive plan members entitled to but not yet receiving benefits
Active plan members
90
13
122
225
Benefits provided. The Municipal Firefighters’ Pension Trust Fund (MFPTF) provides retirement, termination,
disability and death benefits to Plan members and their beneficiaries, as follows:
•
•
•
•
•
Normal retirement: Date of retirement is the earlier of (1) age 52, or (2) twenty-five years of credited service,
regardless of age. The benefit amount is 3.11% of the average monthly earnings multiplied by credited
service. Benefits from the MFPTF are reduced by amounts paid under the terminated Travelers contracts.
Early retirement: Date of retirement is attainable at age 45 and ten years of credited service. The benefit
amount is the member’s accrued benefit, reduced 2% for each year prior to the normal retirement date.
Benefits from the MFPTF are reduced by amounts paid under the terminated Travelers contracts.
Termination of employment: Vested members (members with ten years or more of credited service) receive
their accrued benefit payable at the member’s election, at age 52 (unreduced) or as early as age 45
(reduced) or refund of their member contributions, with 3.75% interest. Non-vested members (members
with less than ten years of credited service) receive a refund of their member contributions, with 3.75%
interest.
Disability benefits: Total and permanent benefits, as determined by the Board, for eligible members that
have ten years of credited service if the disability is not service-incurred. There is no service requirement for
service-incurred disability benefits. The benefit amount for In-Line-of-Duty is the greater of the accrued
benefit or 60% of the average monthly earnings. Line-of-duty retirees also receive the supplemental benefit
listed above as well as the 3.0% cost of living increase beginning at age 60.
Pre-retirement death benefits: The surviving spouse receives benefits that are the greater of the member’s
early retirement benefit or 50% of the projected normal retirement benefit based on the average monthly
earnings at the time of death. Each dependent child under the age of 21 receives 5% of the projected
normal retirement benefit that was determined for the spouse. The minimum benefit is the member’s
accrued benefit payable to the beneficiary for ten years. Death benefits are offset by amounts payable
under terminated Travelers Contracts.
Benefit terms provide a cost of living increase, as follows:
•
•
Members who retire after June 1, 1986 and prior to January 1, 2005 (exclusive of any supplemental benefit)
receive an increase of 3.0% in benefits beginning on the October 1 following age 60.
Members who retire on or after January 1, 2005 (exclusive of any supplemental benefit) receive an increase
of 3.0% per year beginning on the October 1 that is at least twenty-four months following the retiree’s normal
retirement date.
Service retirees (normal or early) receive a supplemental benefit of an additional $200 per month for life.
68
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
3.
Municipal Firefighters’ Pension Trust Fund (continued)
Benefits provided (continued)
Individual participant share accounts were established as of October 1, 2010 for all participants that are actively
employed by the City on or after October 1, 2010. The accounts shall be credited with monies received pursuant to
Chapter 175, Florida Statutes in excess of the 2009 base amount of $475,448, beginning with the plan year ending
September 30, 2010 (including all remaining funds in the Excess State Monies Reserve). On each valuation date,
each account shall be adjusted to reflect the net earnings or losses during the year at the net of fees rate of return for
the year unless the Board dedicates a separate investment portfolio for the Share Plan monies.
Contributions. Member contribution requirements are established by City Code Section 62-135, which may be
amended by the City Council. Members of the Plan are required to contribute 8% of their annual covered salary. The
City is required to contribute, at actuarially determined rate, the remaining amount required in order to pay current
costs and amortize the unfunded past service cost, if any, as provided in Chapter 112, Florida Statutes, less amounts
received from the State of Florida for insurance surcharges on policies sold within the City. The State’s contribution
to the MFPTF for fiscal year 2014 was $823,071. The City recognizes these on-behalf payments as revenues and
expenditures in the governmental funds financial statements.
Three Year Trend Inform ation
Pension Plan
Fiscal Year Ending
MFPTF (1)
Annual Pension Cost
(APC)
9/30/2014
9/30/2013
9/30/2012
5,577,263
5,444,898
5,146,760
Percentage of APC
Contributed
100%
100%
100%
Net Pension
Obligation
-
(1)
The amounts include applicable premium tax refunds from the State of Florida that w ere passed through the City to the respective
trust fund.
Investments. In fulfilling their fiduciary responsibility, the Pension Board of Trustees (the Board) for the MFPTF
established an Investment Policy Statement and directed that it apply to all assets under their control. Note 4, section
2, provides disclosure about the MFPTF investment policy and related investments.
Deferred Retirement Option Program (DROP). MFPTF employees are eligible for the Deferred Retirement Option
Program (DROP) upon the satisfaction of normal retirement requirements. Participation in the DROP may not
exceed eighty-four months. At the member’s election, the rate of return may be (1) the actual net rate of investment
return (total return net of brokerage commissions, management fees and transaction costs) credited each fiscal
quarter, or (2) 3.0% per annum compounded monthly. Members may elect to change the form of return one time.
Participating members receive their distribution as a cash lump sum (options available) at the termination of
employment. As of September 30, 2014, the balance of the DROP amounts maintained by the MFPTF was
$1,527,185.
Net Pension Liability
The components of the net pension liability of the MFPTF at September 30, 2014 were as follows:
Total pension liability
Plan fiduciary net position
MFPTF net pension liability
Plan fiduciary net position as a percentage
of the total pension liability
$ 106,597,714
(71,910,452)
$ 34,687,262
67.46%
69
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
3.
Municipal Firefighters’ Pension Trust Fund (continued)
Actuarial assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2013,
updated to September 30, 2014, using the following actuarial assumptions applied to all periods included in the
measurement:
Inflation
Salary increases
Investment rate of return
3.0 percent
6.0 percent
8.00 percent, net of pension plan investment expense,
including inflation
Mortality rates were based on the RP-2000 Table with no projection. Based on a study of over 650 public safety
funds, this Table reflects a 10% margin for future mortality improvements. Disabled lives set forward five years.
The actuarial assumptions used in the October 1, 2013 valuation were based on the results of an actuarial
experience study for the period 1987 – 2009.
The long-term expected rate of return on the MFPTF investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expenses and inflation) are developed for each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset
class included in the MFPTF’s target asset allocation as of September 30, 2014 (see the discussion of the MFPTF’s
investment policy provided in Note 4) are summarized in the following table:
Asset Class
Domestic Equity
International Equity
Broad Market Fixed Income
Global Fixed Income
Alternatives
Real Estate
Long-Term Expected
Real Rate of Return
7.50%
8.50%
2.50%
3.50%
2.50%
4.50%
Discount Rate. The discount rate used to measure the total pension liability was 8.00 percent. The projection of
cash flows used to determine the discount rate assumed that Plan member contributions will be made at the current
contribution rate and that City contributions will be made at rates equal to the difference between actuarially
determined contribution rates and the member rate. Based on those assumptions, the MFPTF’ 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 the MFPTF investments was applied to all periods of projected benefit payments
to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension
liability of the MFPTF, calculated using the discount rate of 8.00 percent, as well as what the MFPTF’ net pension
liability would be it were calculated using a discount rate that is 1 percentage point lower (7.00%) or 1 percentage
point higher (9.00%) than the current rate:
MFPTF net pension liability
1% Decrease
(7.00%)
Current Discount
Rate (8.00%)
$
$
47,928,660
70
34,687,262
1% Increase
(9.00%)
$
24,401,987
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
Annual Pension Costs and Net Pension Obligations
The City’s annual pension costs for the fiscal year ended September 30, 2014 were $6,801,622 for GEPP,
$10,605,960 for PORS and $5,577,263 for MFPTF. The following table shows the components of the City’s pension
costs for the fiscal year, the amount contributed to the pension plans and the changes to the City’s net pension
obligation:
General Em ployees'
Pension Plan
Annual required contribution
Annual pension cost
Contributions made - City
Contributions made - State
Increase in net pension obligation
Net pension obligation - beginning of year
Net pension obligation - end of year
$
Police Officers'
Retirem ent System
6,801,622
6,801,622
(6,801,622)
-
$
$
$
Municipal Firefighters'
Pension Trust Fund
10,605,960
10,605,960
(10,010,777)
(595,183)
-
$
$
5,577,263
5,577,263
(5,171,336)
(405,927)
-
As provided by paragraph 11 of Governmental Accounting Standards Board Statement No. 27, Accounting for
Pensions by State and Local Government Employers, the contributions shown above include short-term differences
that are intended to be settled by the next actuarial valuation date or by the anniversary of the date when the
difference occurred, whichever is later. The balance of the net pension obligation as of the beginning of the fiscal
year has been restated to reflect the application of this guidance.
Retirement Plan for City Officials Electing Not to Participate in the Current Defined Benefit Plan
Plan Description. On May 7, 2007, City Council passed Resolution No. 2007-26, which authorized the
establishment of a governmental money purchase plan and trust for City officials, who comprise elected officials, the
City Manager, Police Chief, Fire Chief, and City directors. On June 5, 2007, the City adopted the City of Fort Myers
401(a) Plan for City officials that elect not to participate in the City’s defined benefit plans.
The deferred compensation amounts are not available for withdrawal by the participants until termination, retirement,
death or unforeseeable emergency. The plan is administered by an unrelated financial institution on behalf of the
City.
Contributions. For City officials that elect not to participate in the City’s defined benefit plans, the City shall
contribute 12% of earnings for the plan year and the participants are required to contribute 3% of their earnings.
Contribution requirements for the City Manager and the Chief of Police are determined by their employment
agreements. Currently, the City provides a retirement benefit equal to 15.3% of salary. No employee contribution or
vesting period is required.
As of September 30, 2014, the City Manager, one City Council member and the Chief of Police were the only
participants in the 401(a) Plan and the total 2014 contributions were $44,986.
71
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
Statement of Net Position - Pension Trust Funds
ASSETS
Cash and cash equivalents
$
Receivables
Employer contributions
Due from broker for investments sold
Tax reclaims
Interest and dividends
Prepaid items - benefits
Total receivables
Investments, at fair value
U.S. government and agency securities
Municipal bonds
Corporate stock
Corporate stocks - ADR
Corporate bonds
Convertible bonds
Convertible preferred
Mortgage backed securities
Asset backed securities
Mutual funds:
Fixed income
Equity
International equity
Commingled funds:
Real estate
International equity
Master limited partnerships
Private placements
Real estate investment trusts
International securities:
Bonds and notes
Stocks
Total investments
Total assets
LIABILITIES
Payables:
Benefit payments
Investment expenses
Administrative expenses
Due to broker for investments purchased
Prepaid member contributions
Total liabilities
NET POSITION
Net position restricted for pensions
$
Police
Municipal
General
Officers'
Firefighters'
Employees'
Pension Plan
Retirement
System
Pension
Trust Fund
3,743,183
$
2,113,643
$
3,789,319
Total
$
9,646,145
59,651
54,304
109,145
18,604
241,704
10,010,777
275,676
3,260
234,739
638,982
11,163,434
5,171,336
898
85,564
366,089
5,623,887
15,241,764
330,878
3,260
429,448
1,023,675
17,029,025
1,423,205
1,087,154
34,755,015
508,549
3,494,326
7,686,961
2,351,301
9,088,991
30,577,123
2,373,283
6,539,493
1,445,433
6,487,183
-
1,302,376
837,243
34,376,772
4,658,040
1,757,115
11,814,572
1,924,397
99,708,910
508,549
10,525,649
6,539,493
1,445,433
14,174,144
4,108,416
14,468,465
3,037,732
-
7,079,252
10,006,922
2,594,834
9,024,005
17,063,299
10,116,984
19,030,927
11,870,496
40,110
965,209
6,392,577
1,962,402
-
8,065,067
-
14,457,644
11,870,496
1,962,402
40,110
965,209
852,526
4,294,097
86,835,146
81,952,659
62,615,452
852,526
4,294,097
231,403,257
90,820,033
95,229,736
72,028,658
258,078,427
3,808
103,814
10,709
78,302
726
197,359
92,119
2,482
74,677
163
169,441
100,174
8,981
9,051
118,206
3,808
296,107
22,172
162,030
889
485,006
90,622,674
$
72
95,060,295
$
71,910,452
$
257,593,421
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 10 – PENSION OBLIGATIONS (continued)
Statement of Changes in Net Position - Pension Trust Funds
ADDITIONS
Contributions
Employer
$
State of Florida
Plan members
Total contributions
Police
Municipal
General
Officers'
Firefighters'
Employees'
Retirement
Pension
Pension Plan
System
Trust Fund
6,801,604
$
10,010,777
$
5,171,336
Total
$
21,983,717
966,498
7,768,102
595,183
1,135,542
11,741,502
823,071
624,354
6,618,761
1,418,254
2,726,394
26,128,365
of investments
Interest and dividends
Total investment gains
5,858,301
1,526,456
7,384,757
6,051,078
2,051,738
8,102,816
5,635,332
1,160,850
6,796,182
17,544,711
4,739,044
22,283,755
Less: investment expenses
Net investment gains
583,016
6,801,741
487,507
7,615,309
514,502
6,281,680
1,585,025
20,698,730
14,569,843
19,356,811
12,900,441
46,827,095
7,122,160
7,822,710
4,331,258
19,276,128
147,068
97,735
88,769
333,572
7,269,228
7,920,445
4,420,027
19,609,700
7,300,615
11,436,366
8,480,414
27,217,395
Investment income
Net appreciation in fair value
Total additions
DEDUCTIONS
Benefits paid
Administrative expenses
Total deductions
Change in net position
NET POSITION
Net position held in trust for pension
benefits
Net position - beginning
Net position - ending
$
83,322,059
90,622,674
$
83,623,929
95,060,295
$
63,430,038
71,910,452
$
230,376,026
257,593,421
NOTE 11 – DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Service
(IRS) Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until
future years. The deferred compensation is not available to employees until termination, retirement, death or the
hardship distribution criteria as defined in IRS Code Section 457. Because the assets of the plan are held in trust and
are the sole property of the participants, no balances or financial information relative to the plan is reported in the
basic financial statements.
73
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 12 – OTHER POSTEMPLOYMENT BENEFIT OBLIGATIONS
In addition to providing pension benefits, the City has a single-employer healthcare plan that allows retirees to
purchase health, life, vision and dental benefits at the same rate as active employees, in accordance with state
statutes. To be eligible for this benefit, the employee must retire from the City, have no break between his/her active
employment and retirement, and be collecting pension benefits from one of the City’s three pension plans. The
retirees pay all premiums for the coverage elected.
In order to comply with the requirements of Governmental Accounting Standards Board Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions, the City
contracted with a certified actuarial firm to provide an actuarial valuation of postemployment benefits. The
postemployment health insurance benefits will continue to be offered on a pay-as-you-go basis with the same
premium subsidy rates that active employees receive. As required by the State of Florida Statute 112.0801(1), the
claims experience of the retirees is co-mingled with that of active employees in determining the health plan cost. In
accordance with GASB Statement No. 45, the co-mingling of claims requirement equates to an implicit subsidy to
retirees that creates an OPEB liability on the part of the City. Therefore, the City has incurred a liability for the implicit
rate subsidy as the City implemented GASB Statement No. 45. The City does not intend to fund the actuarial
accrued liability.
The City’s annual other postemployment benefit (OPEB) cost is calculated based on the annual required contribution
(ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB 45. The
calculation produced an unfunded obligation of $11,454,573 and an ARC as 5.8% of average projected payroll. The
following table shows the components of the City’s OPEB cost for the year, the amount contributed to the plan, and
changes in the City’s net OPEB obligation:
Annual required contribution (ARC)
Interest on net OPEB obligation
Adjustment to ARC
Annual OPEB cost
Contributions made
Increase in net OPEB obligation
Net OPEB obligation-beginning of year
Net OPEB obligation-end of year
$
$
2,157,430
347,950
(382,362 )
2,123,018
(609,864)
1,513,154
9,941,419
11,454,573
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for the year are as follows:
Year Ending
09/30/12
09/30/13
09/30/14
Percentage of
OPEB Cost
Contributed
35.64%
29.18%
28.73%
Annual
OPEB Cost
$ 2,099,767
2,023,299
2,123,018
Net OPEB
Obligation
$ 8,508,529
9,941,419
11,454,573
As of October 1, 2012, the most recent actuarial valuation date, the plan was zero percent funded. The actuarial
accrued liability for benefits was $20,978,235, and the actuarial value of assets was zero, resulting in an unfunded
actuarial accrued liability (UAAL) of $20,978,235. The covered payroll (annual payroll of active employees) was
$35,623,010, and the ratio of the UAAL to the covered payroll was 58.89 percent.
The schedule of funding progress, presented as Required Supplementary Information following the notes to the
financial statements, presents multiyear trend information about whether the actuarial value of plan assets are
increasing or decreasing over time relative to the actuarial accrued liability for benefits. A separate, publicly available
postemployment benefit plan report is not prepared for the defined benefit plans.
74
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 12 – OTHER POSTEMPLOYMENT BENEFIT OBLIGATIONS (continued)
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by
the employer and the plan members) and include the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
The information presented in the required supplementary schedule was determined as a part of the actuarial
valuation at the date indicated:
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return*
Projected salary increase*
Healthcare cost trend
10/1/2012
Entry Age
Level percent, closed
26 years
Unfunded
3.5% per year, compounded annually
6%-7% per year
0.0% initially
5.4% ultimately, in 2020
* Includes general price inflation at 3.0%
NOTE 13 – COMMITMENTS
Construction Contracts
The Water–Wastewater Fund had outstanding commitments of uncompleted construction contracts totaling
$5,648,084. These projects relate primarily to neighborhood utility improvements. Funding for these projects is payas-you-go, unpledged sewer impact fees, and the Utility System Refunding and Revenue Bonds, Series 2011.
Other non-major enterprise funds had construction contract commitments totaling $2,565,395, primarily for the Fort
Myers Country Club Renovation and for citywide drainage rehabilitation. The funding for these projects is provided
by pay-as-you-go, federal grants, Cleveland Avenue Redevelopment Areas, and the Capital Improvement and
Refunding Revenue Bonds, Series 2014A.
The Transportation Capital Projects Fund had outstanding commitments of $2,310,249, primarily for engineering
design costs for the Hanson Street Extension – US 41 to Ortiz Avenue corridor, City bridge structural engineering,
and street overlay. The funding for these projects comprises pay-as-you-go, federal grants, road impact fees, the
Improvement and Refunding Revenue Bonds, Series 2006, and the Capital Improvement and Refunding Revenue
Bonds, Series 2014A.
The General Capital Projects Fund had commitments outstanding of $1,561,404, mainly for the network fiber optic
infrastructure, ADA improvements in Fort Myers Country Club, and the design of a new fire station and administration
building. Funding for these projects is provided by pay-as-you-go, the Improvement and Refunding Revenue Bonds,
Series 2006, and the Capital Improvement and Refunding Revenue Bonds, Series 2014A.
75
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 13 – COMMITMENTS (continued)
Construction Contracts (continued)
The remaining commitment amounts were encumbered at fiscal year end. As discussed in Note 1, 6., Budgetary
information, Budgetary basis of accounting, the encumbrances and related appropriations lapse at the end of the
fiscal year, but are re-appropriated and become part of the subsequent year’s budget because performance under
the contract is expected in the next year.
Encumbrances
As discussed in Note 1, 6., Budgetary information, Budgetary basis of accounting, encumbrance accounting is used
to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash
planning and control. At year end, the amount of encumbrances expected to be honored upon performance by the
vendor in the next year were as follows:
General
Fund
Encumbrances Outstanding
$
333,863
Governmental Activities
Transportation
General
Other
Capital Projects Capital Projects
Governmental
Fund
Fund
Funds
$
2,310,249
$
1,561,404
$
227,106
Total
$
4,432,622
Transportation Capital Projects Fund – of this amount, $1,407,266 is restricted for the Hanson Street Extension – US
41 to Ortiz Avenue corridor.
Road, Water, Wastewater and Fire Impact Fees Credits
The City offers road, water and wastewater and fire impact fee credits to developers who construct or provide certain
infrastructure improvements. Credits may be earned in special assessment districts, which are financed by the City,
and residential and commercial projects. The credits may be used to offset future impact fees and have a standard
life of twenty years for road and fire credits and ten years for water and wastewater from date of issuance, unless a
longer period is specifically authorized by City Council. The developer who earned them may use the credits or the
credits may be transferred to another party under certain circumstances. If the credits are not used within the
authorized timeframe, they will expire.
Chapter 122, Land Development Code allows the City to create water and sewer impact fee credits for capital
improvements of utility mains. The credits are created when the construction is completed and accepted by the City
for maintenance. The road impact fee credits include credits for land dedicated to the City. The City also participates
with the Lee County Road Impact Fee Ordinance through an interlocal agreement. The Lee County Road Impact Fee
Ordinance allows for the issuance of impact fee credits for land dedication for approved roads shown on the City’s
transportation element of the Capital Improvement Program.
As of September 30, 2014, there was approximately $26 million of total potential impact fee credits earned and
outstanding.
Water
Sewer
Road
Fire
Total
$
$
Available
70,319
21,517
23,836,576
1,793,783
25,722,195
76
$
$
Earned
70,319
21,517
23,836,576
1,793,783
25,722,195
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 14 – RISK MANAGEMENT
The City, including its component units, uses the Risk Management Internal Service Fund to account for and finance
risks for workers’ compensation, general liability and property damage. The City self-insures its workers’
compensation exposure and purchases commercial excess coverage for workers’ compensation, which covers
claims greater than $750,000. The City is self-insured for general liability risk in the amount of $200,000 per claim,
which is in accordance with Florida Statute 768.28. The City purchased commercial excess coverage for general
liability up to $2,000,000 per occurrence for claims that may exceed statutory limits. Commercial insurance is
purchased to cover property damage and the coverage provides a loss limit of $20,000,000 all risk property
coverage, with a $10,000,000 Named Windstorm sub-limit. Flood insurance through National Flood Insurance
Program provides coverage of $11,517,700 with $3,040,700 coverage for personal property on scheduled structures.
Settlements have not exceeded insurance coverage for the past twenty years.
Additional coverage includes EMT Liability, Law Enforcement Liability, Public Officials’ Liability, Excess Auto Liability,
Crime/Employee Dishonesty, and Statutory Death.
The City of Fort Myers provides all eligible employees a group medical plan and group term life coverage equal to
one times the annual salary rounded to the next higher thousand. In addition, the City makes a defined contribution
of $200 per month per employee or pays 70% of the dependent medical coverage. The defined contribution may be
applied to the cost of dependent medical, or; applied to the cost of any optional employee benefit, or; taken as
taxable income.
Premiums are charged by the City’s Risk Management Internal Service Fund to City departments and are available to
pay claims, claim reserves and administrative costs of the program. Liabilities of the Risk Management fund are
reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
Liabilities include an amount for claims that have been incurred but not reported (IBNR). Claim liabilities are
actuarially calculated considering the effects of inflation, recent claim settlement trends, including frequency and
amount of payouts, and other economic and social factors, utilizing a 2% discount.
The unpaid claim estimates and funding recommendations were developed by the actuary using the following
methodology:
1.
2.
3.
Estimate ultimate losses for all past fiscal accident periods and prospective fiscal accident periods by
coverage, net of specific excess reinsurance, based on various actuarial projection methods.
Subtract cumulative paid losses from the ultimate loss estimates by accident period to determine the
estimated reserves, net of specific excess coverage, as of September 30, 2014.
Determine funding indications by discounting both the estimated reserve by accident period and the
prospective year estimated ultimate loss estimates to reflect investment income, and then adding a margin
for adverse deviation.
The liability for the claims and judgments is reported as self-insurance claims payable in the Risk Management
Internal Service Fund. Activity in the balances of claims liabilities for the years ending September 30, 2014 and 2013
is as follows:
2014
Workers Compensation and General Liability:
Unpaid claims, beginning of the fiscal year
Claims incurred, including IBNRs
Claim payments
Unpaid claims, end of the fiscal year
$
5,453,373
3,596,915
(2,252,162)
$ 6,798,126
77
2013
$
5,405,812
2,603,387
(2,555,826)
$ 5,453,373
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 15 – LONG-TERM LIABILITIES
Arbitrage
The bonds and notes in Governmental and Business-type Activities are subject to arbitrage. The arbitrage rebate
requirement requires issuers of tax exempt debt to rebate to the U.S. Treasury investment income arising from
proceeds of tax exempt debt to the extent that such income results from an investment yield in excess of the bond
yield. There is no arbitrage liability as of September 30, 2014.
Bonds and notes outstanding at September 30, 2014 consist of the following for governmental activities:
Purpose of
Issue
Governmental Activities:
Revenue Bonds:
Gulf Breeze Loan Pool,
1999
League of Cities Loan
Pool, 2005C
Series 2006
Series 2007
Series 2014A
Series 2014B
Refunding
Amount
Issued
$
Refunding
Refunding
Refunding
Refunding
Refunding
Total Revenue Bonds
Notes Payable:
Section 108 Housing
Loan, 1996
Revenue Improvement
Note, Series 2005 DRA
Total Notes
Housing
Projects
Streetscape
Project
Total for Governmental Activities
$
10,420,000
Amount
Outstanding
3,315,000
5.56%
4,970,000
58,195,000
33,743,640
37,120,000
2,790,000
460,000
38,190,000
22,695,225
37,120,000
2,790,000
3.000% - 5.000%
4.000% - 5.000%
5.000%
2.000% - 5.000%
2.000% - 5.000%
147,238,640
104,570,225
300,000
25,000
7,450,000
7,750,000
3,969,230
3,994,230
154,988,640
$
$
Maximum
Annual
Debt Service
Interest
Rate
$
(1)
4.010%
1,753,763
483,000
4,722,506
3,315,741
3,771,138
628,693
25,000 (2)
657,531
108,564,455
(1)
Interest is set on an index of 3 month LIBOR plus 20 basis points as published in the Wall Street Journal.
As of September 30, 2014, the 3 month LIBOR was 0.23500.
(2)
Principal portion only has been disclosed, as interest is a variable rate, thus maximum interest is not known.
Pledged Revenues
The City pledged revenues, which comprise the Utilities Tax, Franchise Taxes, Communications Services Tax,
Guaranteed Entitlement Funds, Occupational License Tax, Sales Tax, Five Cents Local Gas Tax, Six Cents Local
Gas Tax and tax increment financing revenues as the sources of repayment for the following debt issues. Pledged
revenues received in 2014 totaled $31,919,080.
Governmental Unit Note (Gulf Breeze Loan Pool) refunded the outstanding Taxable Improvement Revenue Bonds,
Series 1992B; Taxable Capital Improvement Revenue Bonds, Series 1998A; Taxable Capital Improvement Revenue
Bonds, Series 1998B. The note is payable through December 1, 2015, with total principal and interest remaining to
be paid of $3,500,938. Principal and interest paid for the current fiscal year totaled $1,256,390, which is 3.94% of
total 2014 pledged revenues.
Community Redevelopment Revenue Note, Series 2005, was issued to finance the cost of community redevelopment
projects and to refund certain outstanding obligations of the City. The bonds are payable through January 1, 2022,
with total principal and interest remaining to be paid of $4,695,868. Principal and interest paid for the current fiscal
year totaled $677,703, which is 2.12% of total 2014 pledged revenues.
78
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 15 – LONG-TERM LIABILITIES (continued)
Pledged Revenues (continued)
Improvement and Refunding Revenue Bonds, Series 2006, were issued to provide funds to finance various capital
improvements within the City and advance refund a portion of the outstanding Improvement Revenue Bonds, Series
2001A. Proceeds from the Capital Improvement and Refunding Revenue Bonds, Series 2014A, refunded
$18,320,000 of the outstanding principal balance. The bonds are payable through December 1, 2036, with total
principal and interest remaining to be paid of $65,436,700. Principal and interest paid for the current fiscal year
totaled $3,154,106, which is 9.88% of total 2014 pledged revenues.
Improvement Revenue Refunding Bonds, Series 2007, refunded a portion of the outstanding Improvement Refunding
Revenue Bonds, Series 1997A. The bonds are payable through December 1, 2022, with total principal and interest
remaining to be paid of $28,582,625. Principal and interest paid for the current fiscal year totaled $5,266,250, which
is 16.50% of total 2014 pledged revenues.
Bonds and notes outstanding at September 30, 2014 consist of the following for business-type activities:
Purpose of
Issue
Business-type Activities:
Utility System Revenue Bonds:
Series 1993A – Includes a
Refunding
capital appreciation series
Series 2006A
Refunding
Series 2011
Refunding
Series 2012
Refunding
Total Utility System Revenue Bonds
State Revolving Fund Loans
Utility System
Utility Revenue Note, Series 2008A Utility System
Total Utility System
Amount
Issued
$
48,920,000
38,925,000
68,605,000
17,025,000
173,475,000
100,684,185
50,000,000
324,159,185
Amount
Outstanding
$
Interest
Rate
Maximum
Annual
Debt Service
14,195,000
3.750% - 5.850%
$
3,193,446
37,540,000
66,335,000
15,950,000
134,020,000
73,161,811 (1)
48,912,259
256,094,070
4.000% - 5.750%
2.000% - 5.000%
2.000% - 4.000%
5,229,975
6,993,513
2,257,649
2.310% - 3.160%
5.060%
6,452,814
6,585,477
Solid Waste Revenue Bonds
Series 2007
Total Solid Waste System
Refunding
478,584
478,584
321,885
321,885
5.000%
47,027
Other Revenue Bonds
Series 2007
Total Other Revenue Bonds
Refunding
457,776
457,776
307,890
307,890
5.000%
44,982
5,000,000
3,952,959
4.630%
386,877
$ 330,095,545
$ 260,676,804
Yacht Basin Note, Series 2005
Total Business-type Activities
(1)
Total amount authorized is $100,896,849, including service fees. As of September 30, 2014, $102,784,696, including
service fees and capitalized interest, was drawn down.
79
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 15 – LONG-TERM LIABILITIES (continued)
The business-type outstanding debt consists of Revenue Bonds and Notes for the Water-Wastewater Fund, the Solid
Waste Fund, and for the non-major funds for the Fort Myers Country Club and Yacht Basin. These Revenue Bonds
and Notes are obligations of the City and are payable solely from the operations of the System, net of specified
operating expenses.
Changes in governmental long term debt for the year ended September 30, 2014 are summarized as follows:
Beginning
Additions
Balances
Revenue bonds payable
$
Unamortized premium
Net bonds payable
Notes payable
Capital leases
Compensated absences
Other postemployment benefits
Claims and judgments
Governmental-type Totals
100,402,225
$
2,506,223
102,908,448
4,515,384
588,572
3,589,480
7,491,571
$
11,253,373
130,346,828
Amounts
Due Within
Ending
Reductions
39,910,000
$
1,778,586
41,688,586
291,792
474,780
1,147,250
$
3,596,915
47,199,323
$
One Year
Balances
35,742,000
$ 104,570,225
240,834
35,982,834
521,154
178,496
228,502
-
4,043,975
108,614,200
3,994,230
701,868
3,835,758
8,638,821
8,052,162
44,963,148
6,798,126
$ 132,583,003
$
7,348,035
7,348,035
521,154
200,622
1,683,207
-
$
3,170,548
12,923,566
Changes in business-type long term debt for the year ended September 30, 2014 are summarized as follows:
Beginning
Balances
Water-Wastewater Utility Fund
Water-Wastewater bonds
Unamortized premium and
defeasance costs
Net bonds payable
State Revolving Loan
Revenue Note, Series 2008A
Due to private sources
Compensated absences
Other postemployment benefits
Fund totals
$
135,336,212
Additions
Reductions
-
$
$
Ending
Balances
3,171,925
$ 132,164,287
Due Within
One Year
(1)
$
5,875,000
4,412,843
139,749,055
77,625,723
49,471,745
2,832,963
414,063
1,175,572
27,305
171,284
80,275
3,252,200
4,463,912
559,486
67,765
-
4,332,568
136,496,855
73,161,811
48,912,259
2,832,963
373,603
1,346,856
5,875,000
4,580,903
585,048
82,762
-
271,269,121
198,589
8,343,363
263,124,347
11,123,713
(1)
Difference betw een the $132,164,287 and $134,020,000 show n on the "Amount Outstanding" schedule is due to the 1993A capital appreciation
bonds. The difference of $1,855,713 is compounded interest on those bonds.
The amount that is due to private sources relates to a developer agreement for the design and management of the
construction of a new clubhouse for Eastwood Golf Course, with the total cost to be used as a credit toward future
land purchases for development. The developer completed the construction of the clubhouse in fiscal year 2009.
The land related to the agreement is an asset in the Water-Wastewater Utility Fund. Due to the collapse of the local
real estate market, it cannot be determined when the land purchases will take place.
80
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 15 – LONG-TERM LIABILITIES (continued)
Business-type long term debt (continued)
Amounts
Beginning
Balances
Additions
Reductions
Ending
Due Within
Balances
One Year
Solid Waste Fund
Revenue bonds
377,085
-
55,199
321,886
31,671
Unamortized premium
Net bonds payable
20,290
397,375
-
2,194
57,393
18,096
339,982
31,671
Compensated absences
Other postemployment benefits
Fund totals
128,911
380,532
906,818
25,446
55,369
80,815
14,558
71,951
139,799
435,901
915,682
30,885
62,556
Other Enterprise Funds
Other revenue bonds
Unamortized premium
Net bonds payable
Note payable
Compensated absences
Other postemployment benefits
Fund totals
360,690
19,408
380,098
4,148,531
336,112
893,744
5,758,485
61,579
139,251
200,830
52,800
2,098
54,898
195,572
38,360
288,830
307,890
17,310
325,200
3,952,959
359,331
1,032,995
5,670,485
30,294
30,294
204,916
137,932
373,142
8,704,144
$ 269,710,514
Business-type totals
$
277,934,424
$
480,234
$
$
11,559,411
Annual debt service requirements to maturity for general revenue bonds and notes are as follows:
Governmental Activities
Revenue Bonds
Fiscal Year
2015
2016
$
Principal
7,348,035
7,029,930
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035 and thereafter
Total
5,511,825
5,743,180
5,994,535
19,647,720
17,735,000
21,605,000
13,955,000
104,570,225
Current portion
Unamortized premium
Long term portion
(7,348,035)
4,043,975
101,266,165
$
$
$
Notes and Loans
Interest
4,189,722
3,966,114
Total
Required
$ 11,537,757
10,996,044
3,725,594
3,502,330
3,253,045
13,166,277
9,193,591
5,430,928
892,434
47,320,035
9,237,419
9,245,510
9,247,580
32,813,997
26,928,591
27,035,928
14,847,434
$ 151,890,260
$
496,154
496,154
496,154
1,488,460
3,994,230
$
81
Principal
521,154
496,154
(521,154)
3,473,076
$
$
Interest
162,999
141,205
Total
Required
$
684,153
637,359
121,364
100,861
80,688
121,143
728,260
617,518
597,015
576,842
1,609,603
4,722,490
$
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 15 – LONG-TERM LIABILITIES (continued)
Annual debt service requirements to maturity for business-type revenue bonds and notes are as follows:
Business-Type Activities
Water-Wastewater Revenue Bonds
Total
Fiscal Year
2015
$
Principal
5,875,000
$
Interest
5,862,170
Required
$ 11,737,170
Water-Wastewater Notes
Total
$
Principal
5,165,951
Interest
2016
5,980,000
5,628,634
11,608,634
5,323,319
4,332,070
4,181,454
2017
2018
2019
7,865,000
8,045,000
8,230,000
5,354,373
5,040,782
4,688,810
13,219,373
13,085,782
12,918,810
5,478,321
5,633,900
5,801,988
4,025,931
3,865,624
3,700,282
9,504,252
9,499,524
9,502,270
30,510,000
16,760,000
23,295,000
27,460,000
134,020,000
19,205,708
13,166,359
9,403,806
3,459,087
71,809,729
49,715,708
29,926,359
32,698,806
30,919,087
$ 205,829,729
47,281,200
47,389,391
122,074,070
14,299,164
4,254,049
38,658,574
61,580,364
51,643,440
$ 160,732,644
2020-2024
2025-2029
2030-2034
2035 and thereafter
Total
Current portion
Unamortized premium and
defeasance costs
Long-term portion
$
$
(5,875,000)
$
Required
$
4,332,569
132,477,569
$
116,908,119
Other Revenue Bonds
Total
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035 and thereafter
Total
Current portion
Unamortized premium
Long-term portion
$
$
Principal
31,671 $
33,258
34,845
36,708
38,571
146,832
321,885 $
(31,671)
18,097
308,311
Interest
15,302
13,679
11,977
10,188
8,306
13,103
72,555
Required
$
46,973
46,937
46,822
46,896
46,877
159,935
$
394,440
Total
$
$
Other Revenue Notes
Fiscal
Year
Principal
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035 and thereafter
Total
$
204,916
214,219
224,940
235,687
246,947
1,422,740
1,403,510
3,952,959
Current portion
Long-term portion
(204,916)
$ 3,748,043
Total
Required
Interest
$
181,961
172,657
161,936
151,190
139,929
511,644
143,998
$ 1,463,315
9,498,021
9,504,773
(5,165,951)
Solid Waste Revenue Bonds
Fiscal Year
$
$
$
386,877
386,876
386,876
386,877
386,876
1,934,384
1,547,508
5,416,274
Total
Requirements
$
21,713,972
21,592,117
23,202,109
23,063,936
22,899,672
113,543,372
83,117,307
32,698,806
30,919,087
$ 372,750,378
82
Principal
30,294 $
31,812
33,330
35,112
36,894
140,448
307,890 $
(30,294)
17,310
294,906
Interest
14,637
13,085
11,456
9,745
7,945
12,533
69,401
Required
$
44,931
44,897
44,786
44,857
44,839
152,981
$
377,291
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 15 – LONG-TERM LIABILITIES (continued)
Capital Lease Obligations
In fiscal year 2013, the City entered into two lease agreements as a lessee for financing the acquisition of certain
capital assets for the City’s Fire Department valued at a total of $588,572. The lease agreements qualify as capital
leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease
payments as of the inception dates.
On April 15, 2013, the City entered into a lease agreement to finance the purchase of a fire engine, which has a 12year estimated useful life. The fire engine delivery date was January 17, 2014; therefore, depreciation expense was
not applicable for fiscal year 2013. Accumulated depreciation expense as of September 30, 2014 is $34,359.
On May 31, 2013, the City entered into a lease agreement to finance the purchase of web-based software for incident
reporting, staff and inventory tracking for the City’s Fire Department. The software has a 5-year estimated useful life
and total accumulated depreciation expense as of September 30, 2014 is $13,035.
This year, the City entered into a lease agreement to finance the purchase of an upgrade to the Police Department’s
information management software system. The software has a 5-year estimated useful life and this year, $4,843 was
included in depreciation expense. The lease agreement qualifies as a capital lease for accounting purposes, and
therefore, has been recorded at the present value of the future minimum lease payments as of the inception date.
The City’s Information Technology Services Department in the Internal Services Fund provides the funding for the
software installment payments and annual maintenance while the Police Department in the City’s General Fund
receives the benefit of the software asset. Therefore, the asset acquired through the capital lease is reported in
governmental-wide activities and the capital lease liability is reported in the Internal Services Funds’ activities.
The future minimum lease obligation and the net present value of these minimum lease payments, as reported in the
respective activities, are as follows:
Year ending September 30
2015
2016
2017
2018
2019
2020
Total minimum lease payments
Less: amount representing interest
Present value of minimum lease payments
Governmental Activities
Fire Engine
Software - Fire
$
86,417
$
10,050
86,417
10,050
86,417
10,050
86,417
86,417
86,417
518,502
30,150
(41,709)
(825)
$
476,793
$
29,325
83
Internal Service
Fund
Software - Police
$
117,861
79,877
197,738
(1,988)
$
195,750
Total Required
$
214,328
176,344
96,467
86,417
86,417
86,417
746,390
(44,522)
$
701,868
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 16 – PRIOR YEAR DEFEASED DEBT AND ADVANCE / CURRENT REFUNDING
Prior year defeasance of debt
In prior years, the City defeased certain revenue bonds by placing the proceeds of the new bonds in an irrevocable
trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the
liabilities for the defeased bonds are not included in the City’s financial statements. On September 30, 2014, the
balance for the defeased governmental Improvement Series 1982-1 Revenue Bonds is $0.
Advance and Current Refundings
On June 19, 2014, the City issued $37,120,000 in Capital Improvement and Refunding Revenue Bonds, Series
2014A, and $2,790,000 in Taxable Capital Improvement Refunding Revenue Bonds, Series 2014B, with interest rates
ranging from 2.0% to 5.0% for each series. The proceeds from the Capital Improvement and Refunding Revenue
Bonds, Series 2014A, were used for the acquisition, construction and equipping of the Series 2014 capital projects;
refunding all or a portion of the outstanding Gas Tax Revenue Bonds, Series 2004A, and the Improvement and
Refunding Revenue Bonds, Series 2006. The proceeds from the Taxable Capital Improvement Refunding Revenue
Bonds, Series 2014B, were used to partially refund the loan agreement with the Florida Municipal Loan Council
(FMLC) related to the FMLC’s Revenue Refunding Bonds, Series 2005C. The following table provides a description
of the refundings as of the issuance date, June 19, 2014:
Partially Advance Refunding:
Improvement and Refunding Bonds, Series 2006
Florida Municipal Loan Council Revenue Refunding Bonds, Series 2005C
Partially Current Refunding:
Gas Tax Revenue Bonds, Series 2004A
Total for Advance and Current Refundings
Outstanding
Principal
Refunded
Principal
Principal
Balance
$ 56,510,000
3,120,000
$ 18,320,000
2,660,000
$ 38,190,000
460,000
7,500,000
7,500,000
-
$ 67,130,000
$ 28,480,000
$ 38,650,000
The net proceeds of $30,726,640 (including a $1,778,586 premium and $512,337 in underwriting fees and other
issuance costs) were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt
service payment on the refunded bonds. As a result, the Gas Tax Revenue Bonds, Series 2004A, a portion of the
Improvement and Refunding Revenue Bonds, Series 2006, and a portion of the loan agreement with the Florida
Municipal Loan Council (FMLC) related to the FMLC’s Revenue Refunding Bonds, Series 2005C, are considered
defeased and the liability for those bonds and loan have been removed from the statement of net position.
The reacquisition price exceeded the net carrying amount of the old debt by $2,246,640. This amount is being netted
against the new debt and amortized over the remaining life of the refunding debt. The City advance and current
refunded the Gas Tax Revenue Bonds, Series 2004A, the FMLC Revenue Refunding Bonds, Series 2005C, and the
Improvement and Refunding Revenue Bonds, Series 2006 to refinance the existing debt to take advantage of the
current market interest rates and obtain economic gains (the difference between the present values of the debt
service payments on the old and new debt). On the Series 2014A Bonds, the City achieved a true interest cost of
3.23% over twenty years and present value debt service savings of $1,335,605, or 5.17%, of the refunded par
amount. On the Series 2014B Bonds, the City achieved a true interest cost of 2.09% over six years and present
value debt service savings of $84,948, or 3.19%.
NOTE 17 – FUND BALANCE
Minimum Fund Balance/Net Position Policy
The City adopted a fund balance policy on September 26, 2011 to ensure the maintenance of adequate fund balance
/ net position and reserves in the City’s various operating funds to provide the capacity to: 1) provide sufficient cash
flow for daily financial needs, 2) secure and maintain investment grade bond ratings, 3) offset significant economic
downturns and revenue shortfalls, and 4) provide funds for unforeseen expenditures related to emergencies.
84
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 17 – FUND BALANCE (continued)
General Fund – The City will strive to maintain a minimum unassigned fund balance of 10% with a target of 10% 17% of the total general fund budget. For the purposes of the calculation, the current fiscal year budget shall be the
budget as originally adopted by resolution on or before September 30th for the subsequent fiscal year. The drawdown
of unassigned fund balance may be utilized to respond and provide relief and recovery to emergencies which include,
but are not limited to:
•
•
•
•
Hurricanes or tropical storms
Flooding
Wildfires
Terrorist activity
Replenishment of Deficiencies – In the event that unassigned fund balance in the General Fund is used for
unanticipated expenditures or emergencies, and subsequently causes the balance to fall below the minimum of 10%,
the fund balance should be replenished in order to prepare for future events. The City will strive to replenish the fund
balance within a one year period from the time the event occurs or as quickly as economic conditions allow.
Other Governmental Funds – The various other governmental funds of the City have vastly differing objectives, cash
flows and revenue patterns. As a result, no one level of reserves is appropriate for them all. Therefore, the
appropriate level of fund balance in the other governmental funds will be determined on a case-by-case basis due to
the specific needs of the fund. The City Manager, Director of Finance, or other designee shall determine this level.
Enterprise Funds – The City will strive to maintain unrestricted net position equal to 20% of the budgeted annual
operating expenditures for the current year in the Utility Operating Fund and Solid Waste Fund to provide
approximately a two month cushion for operating expenses. For the purposes of the calculation, the current fiscal
year budget shall be the budget as originally adopted by resolution on or before September 30th for the subsequent
fiscal year. The reserve is needed to cover short-term cash flow variations, economic downturns and emergencies.
Unrestricted net position under the 20% goal should be used only for unanticipated expenditures. The various other
enterprise and internal service funds of the City have vastly differing objectives, cash flows and revenue patterns. As
a result, no one level of reserves is appropriate for them all. Therefore, the appropriate level of net position in all
enterprise and internal service funds, other than the Utility Operating Fund and the Solid Waste Fund, will be
determined on a case-by-case basis due to the specific needs of the fund. The City Manager, Director of Finance, or
other designee shall determine this level.
NOTE 18 – INTERFUND RECEIVABLES AND PAYABLES
The composition of interfund balances as of September 30, 2014 is as follows:
Due to/from other funds
Receivable Fund
General Fund
Payable Fund
Nonmajor Governmental Funds
Amount
$
549,595
The receivable amount in the General Fund from nonmajor governmental funds relates to interim end of year funding.
The General Fund expects to collect the balances in the subsequent year.
Advances to/from other funds
Receivable Fund
General Fund
Payable Fund
Nonmajor Governmental Funds
Amount
$
617,000
The amount payable to the General Fund by the Nonmajor Governmental Funds comprises advances to the Dr.
Martin Luther King, Jr. Boulevard Redevelopment and Cleveland Avenue Redevelopment TIF Districts. None of the
balance is scheduled to be collected in the subsequent year.
85
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 19 – INTERFUND TRANSFERS
Transfers In:
Revenue Bonds
and Notes Fund
General Fund
Transportation
Capital Projects
Fund
General
Capital Projects
Fund
$
$
Transfers Out:
(1)
General Fund
(2)
Revenue Bonds and Notes
(3)
Transportation Capital Projects
(3)
General Capital Projects Funds
Nonmajor Governmental Funds (4)
Water-Wastewater Utility Fund (5)
Solid Waste Fund (5)
Internal Service Fund (6)
$
(7)
Nonmajor Business-type Funds
Total Transfers
$
47,302
6,210,400
4,754,200
1,114,700
214,500
12,341,102
$
$
8,455,063
1,280,044
148,200
82,346
178,595
10,144,248
$
663,237
405,912
229,357
125,540
1,424,046
$
526,921
10,604,000
143,893
2,041
11,276,855
Transfers In:
Nonmajor
Governmental
Funds
Nonmajor
Business-type
Funds
Total Transfers
Transfers Out:
General Fund (1)
Revenue Bonds and Notes
$
(2)
Transportation Capital Projects (3)
General Capital Projects Funds (3)
(4)
Nonmajor Governmental Funds
Water-Wastewater Utility Fund (5)
Solid Waste Fund (5)
(6)
Internal Service Fund
Nonmajor Business-type Funds
Total Transfers
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(7)
$
2,021,671
-
$
2,450,600
-
$
14,117,492
10,604,000
-
-
1,280,044
-
4,518,348
1,300,000
-
4,924,260
1,868,752
6,335,940
4,754,200
2,021,671
108,200
8,377,148
1,197,046
503,336
45,585,070
$
$
Transfers from the General Fund were used to fund debt service needs, capital improvements and grant matching. Transfers to
Revenue Bonds and Notes include $8,073,068 for General Parity sinking fund deposits. The transfers to the Nonmajor
Governmental Funds include $1,966,951 for tax increment funding. Transfers to the Nonmajor Business-type Funds relate to
subsidies for the Yacht Basin, Harborside Event Center, Skatium and Department of Cultural and Historic Affairs enterprise funds.
Transfers from the Revenue Bonds and Notes Fund to the General Capital Projects Funds were used for funding capital project
needs.
Transfers from the two major Capital Projects Funds were used for funding debt service and capital projects.
Transfers from Nonmajor Governmental Funds funded debt service and capital project needs.
Transfers from the Water-Wastewater Utility Fund and Solid Waste Fund were used to contribute to General Fund operations.
Transfers from the Internal Service Fund were used to contribute to operations of the General Fund and to fund debt service needs.
Transfers from the Nonmajor Business-type funds were used to contribute to General Fund operations, to fund debt service needs
and to fund the Parking Garage repairs capital project. The transfer between the Nonmajor Business-type funds relates to funding
from the Eastwood Golf Course operations to the Fort Myers Country Club operations.
86
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 20 – REDEVELOPMENT TRUST FUND
Pursuant to Florida Statute 163.387, the schedule below provides a summary of the sources and amounts of deposits
into, and the amount and purpose of withdrawals from, the Redevelopment Trust Fund (Community Redevelopment
Agency Fund) for the fiscal year ended September 30, 2014.
Deposits
Withdraw als
Sources of deposits:
Tax increment revenue
$
2,942,218
Charges for services
$
7,975
Interest and Investment Income
-
15,896
-
(161,447)
-
Personnel services
-
539,596
Professional services
-
164,414
Contract services
-
79,726
Utilities
-
74,103
Rentals and leases
-
150,565
ITS service charges and capital recovery
-
38,300
Insurance
-
24,200
Repairs and maintenance
-
74,764
Printing and binding
-
5,035
Advertising
-
22,899
Public relations
-
776
Public relations, special events
-
190,000
Tax increment rebates
-
968,511
Taxes and assessments
-
487
General administrative expense
-
132,500
Office supplies
-
29,772
Travel and transportation
-
2,228
Freight and postage
-
479
Dues and subscriptions
-
4,158
Debt service, principal payments
-
496,154
Debt service, interest payments
-
181,549
2,804,642
1,355,119
4,535,335
Loss on fair value of investments
Purpose of w ithdraw als:
Funding for capital projects and equipment
Totals
$
$
NOTE 21 – RELATED ORGANIZATION TRANSACTIONS
The Housing Authority of the City of Fort Myers is considered a related organization. A related organization is one for
which the primary government (The City of Fort Myers appoints a voting majority of the board but does not exercise
financial control) is not financially accountable. During the fiscal year that ended September 30, 2014, the City
received $81,480 from the Housing Authority for providing additional police protection.
87
CITY OF FORT MYERS, FLORIDA
Notes to the Financial Statements, continued
September 30, 2014
NOTE 22 – CONSTRUCTION PROJECT INTEREST COSTS
In accordance with Statement of Financial Accounting Standards (SFAS) No. 34, Capitalization of Interest Cost, and
No. 62, Capitalization of Interest Costs in Situations Involving Certain Tax-Exempt Borrowings and Certain Gifts and
Grants, the City capitalizes construction in progress interest costs in the Water-Wastewater, Solid Waste, and Yacht
Basin funds. For fiscal year ended September 30, 2014, total interest expense was $9,943,678, of which $154,976
was capitalized in the Water-Wastewater fund.
NOTE 23 – CONTINGENCIES
Grants
The City participates in various federal and state grant programs, the principal of which are subject to program
compliance audits pursuant to the Single Audit Act as amended. Accordingly, the City’s compliance with applicable
grant requirements will be established at a future date. The amount of expenditures that may be disallowed by the
granting agencies cannot be determined at this time. City management anticipates such amounts, if any, will be
immaterial.
Litigation, Claims and Assessments
There are several pending claims and lawsuits arising from the normal course of business in which the City is
involved. Estimated liabilities related to most unsettled claims have been accrued under the City’s self-insurance
program, and management believes the self-insurance reserves recorded in the Risk Management Fund are
adequate to cover losses for which the City may be liable. Although the outcome of these lawsuits and pending
claims are not presently determinable, the City’s attorneys are not aware of any such claims against the City that
would have a material effect on the basic financial statements or the adequacy of the appropriate reserves on deposit
in the Risk Management Fund.
On August 27, 2014, the City’s Community Redevelopment Agency (CRA) Board approved a settlement agreement
in the amount of $1,760,000 that ended a lawsuit in which the CRA was defendant in a dispute as to the nature of
Project Payments due under an Assignment of Development Agreement. The CRA agreed to make annual Project
Payments in the guaranteed amount of $220,000 over the next eight fiscal years, commencing with fiscal year 2015.
Since the settlement was determined prior to the close of fiscal year 2014, the City accrued the settlement in the
government-wide financial statements as of September 30, 2014 at the present value of $1,675,281.
NOTE 24 – NEW ACCOUNTING PRONOUNCEMENT
For fiscal year ended September 30, 2014, the City implemented Governmental Accounting Standards Board
Statement No. 67, Financial Reporting for Pension Plans. The scope of this Statement addresses accounting and
financial reporting for the activities of pension plans that are administered through trusts that have the following
characteristics:
•
•
•
Contributions from employers and nonemployer contributing entities to the pension plan and earnings on
those contributions are irrevocable.
Pension plan assets are dedicated to providing pensions to plan members in accordance with benefit terms.
Pension plan assets are legally protected from the creditors of employers, nonemployer contributing entities,
and the pension plan administrator. If the plan is a defined benefit pension plan, plan assets also are legally
protected from creditors of the plan members.
NOTE 25 – SUBSEQUENT EVENTS
As of the date of this report, the City was in negotiations with a developer over a dispute about a funding agreement
for the prepayment of road impact fees relative to the development of certain properties located within the city limits.
The City was exploring settlement opportunities to avoid the substantial cost associated with litigation as well as the
substantial cost associated with an unfavorable outcome at trial. The developer collectively advanced $13.0 million to
the City in January 2007 to be used by the City for the purpose of road improvements. Since the receipt of the funds,
the City estimates that the developer used approximately $8.0 million in road impact fees for the development of
certain properties. As a result, the City recorded a liability of $5.0 million in the governmental fund financial
statements as of September 30, 2014 to recognize this liability.
88
Required Supplementary Information
Other than Management’s Discussion & Analysis
89
CITY OF FORT MYERS, FLORIDA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Taxes
Permits and fees
Intergovernmental revenue
Charges for services
Fines and forfeitures
Miscellaneous
Contributions - private source
Total revenues
$
EXPENDITURES
Current:
General Government Council - Mayor Pro Tem
Council - Ward I
Council - Ward 2
Council - Ward 3
Council - Ward 4
Council - Ward 5
Council - Ward 6
Council - Mayor
City Manager
Legal
City Clerk
Financial Services
Human Resources
Real Estate
Community Development
Contributions
General Contingencies
Insurance
Total General Government
52,852,200
1,493,000
6,518,000
5,354,000
721,000
5,845,060
2,500
72,785,760
$
54,270,454
1,543,000
6,518,000
5,361,750
721,000
8,125,192
7,935
76,547,331
Actual Amounts
(Budgetary Basis)
$
55,788,843
2,012,216
7,111,258
5,685,047
618,797
715,725
8,790
71,940,676
Variance with
Final Budget
$
1,518,389
469,216
593,258
323,297
(102,203)
(7,409,467)
855
(4,606,655)
7,200
80,800
90,300
72,000
81,200
83,000
83,500
130,100
714,300
872,100
1,414,500
2,872,200
935,400
402,700
856,100
213,300
(1,480,000)
188,300
7,617,000
7,200
80,800
90,300
72,000
81,200
83,000
83,500
130,100
714,300
972,100
1,367,100
2,872,200
966,900
409,071
897,278
225,100
(1,282,782)
188,300
7,957,667
6,355
78,664
87,630
70,781
74,428
76,519
80,620
118,299
617,988
941,568
1,001,609
2,600,452
848,693
407,233
837,324
150,100
188,230
8,186,493
Public Safety Police
Fire
Protective Inspections
Total Public Safety
34,715,560
17,587,600
1,547,600
53,850,760
35,101,531
18,410,671
1,629,194
55,141,396
34,589,098
18,172,051
1,455,396
54,216,545
512,433
238,620
173,798
924,851
Transportation Public Works
Insurance
Total Transportation
469,000
7,600
476,600
472,104
7,600
479,704
438,096
7,600
445,696
34,008
34,008
Physical Environment - Public Works
5,546,300
5,965,846
5,530,652
435,194
Culture and Recreation Public Works
Contributions
Special Events
Arts and Culture
Total Culture and Recreation
2,386,700
153,000
141,500
145,000
2,826,200
2,319,700
388,000
141,500
145,000
2,994,200
2,273,370
388,000
125,236
145,000
2,931,606
46,330
16,264
62,594
Total Current
70,316,860
72,538,813
71,310,992
1,227,821
Total expenditures
70,316,860
72,538,813
71,310,992
Excess of revenues over expenditures
2,468,900
4,008,518
629,684
(3,378,834)
12,375,900
12,375,900
12,341,102
(34,798)
(8,755,500)
(338,100)
(5,751,200)
(14,844,800)
(8,755,500)
(1,778,692)
(5,850,226)
(16,384,418)
(8,455,063)
(1,190,158)
(5,696,141)
(15,341,362)
Total other financing sources and uses
(2,468,900)
(4,008,518)
(3,000,260)
1,008,258
Net change in fund balances
Fund balances - beginning
Fund balances - ending
16,348,154
16,348,154
16,348,154
16,348,154
(2,370,576)
16,348,154
13,977,578
(2,370,576)
(2,370,576)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out:
Debt service transfers out
Capital funding transfers out
General transfers out
Total transfers out
$
$
90
$
845
2,136
2,670
1,219
6,772
6,481
2,880
11,801
96,312
30,532
365,491
271,748
118,207
1,838
59,954
75,000
(1,282,782)
70
(228,826)
1,227,821
300,437
588,534
154,085
1,043,056
$
CITY OF FORT MYERS, FLORIDA
Notes to Required Supplementary Information
For the Year Ended September 30, 2014
Note 1 - BUDGETARY REPORTING
A.
Reconciliation of Budgetary Basis Reporting Differences
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) General Fund presents comparisons of the legally adopted budget with actual data on a budgetary basis.
Governmental funds applied to develop data on a budgetary basis differ from those presented in the governmental
fund financial statement due to the implementation of GASB 54. The following describes the major differences
between budgetary financial data and the governmental fund financials.
Perspective differences - Certain funds not included in the General Fund's annual budget but which are presented
in the General Fund for purposes of the governmental financial statements.
The following table presents a reconciliation of General Fund fund balance perspective differences on a budgetary
basis to the fund balances shown on a GAAP basis on the governmental fund financial statements at September 30,
2014:
General
Fund
Fund Balance - actual on a budgetary basis
$
Perspective Differences:
Beautification
Business Development Center
Cemetery Maintenance
Land Acquisition
Off Duty Pay
Submerged Land Lease
13,977,578
67,092
20,760
850,629
438,324
214,825
74,258
Fund balance - actual on a GAAP basis on governmental fund financial statements
91
$
15,643,466
CITY OF FORT MYERS, FLORIDA
Employees' Pension Plans
Schedule of Funding Progress
For the Year Ended September 30, 2014
Actuarial Accrued
Unfunded Actuarial
Actuarial
Actuarial Value
Liability (AAL)
Accrued Liability
Funded
Annual Covered
as a % of
UAAL
Valuation
of Assets
Entry Age Normal
(UAAL)
Ratio
Payroll
Covered Payroll
Date
(a)
(b)
(b-a)
(a/b)
(c)
((b-a)/c)
City of Fort Myers General Employees' Pension Plan (GEPP)
10/01/14
$ 87,060,467
57,472,882
60.24%
20,844,800
275.72%
10/01/13
79,486,877
$
144,533,349
136,679,325
$
57,192,448
58.16%
$
21,092,818
271.15%
10/01/12
74,235,307
129,474,676
55,239,369
57.34%
20,847,217
264.97%
10/01/11
68,620,695
123,124,219
54,503,524
55.73%
23,572,017
231.22%
10/01/10
70,436,426
137,465,641
67,029,215
51.24%
25,753,922
260.27%
10/01/09
68,557,608
131,773,409
63,215,801
52.03%
27,501,914
229.86%
10/01/08
67,568,410
125,300,972
57,732,562
53.92%
27,702,349
208.40%
10/01/07
64,986,923
98,169,411
33,182,488
66.20%
29,887,088
111.03%
10/01/06
56,118,295
88,715,825
32,597,530
63.26%
27,860,696
117.00%
10/01/05
48,715,164
75,131,467
26,416,303
64.84%
23,736,481
111.29%
City of Fort Myers Police Officers' Retirement System (PORS)
10/01/14
$ 91,279,902
64,337,417
58.66%
11,780,569
546.13%
10/01/13
80,306,844
$
153,600,950
155,617,319
$
73,294,106
52.28%
11,537,866
633.27%
10/01/12
71,107,120
146,236,582
75,129,462
48.62%
11,359,363
661.39%
10/01/11
63,608,039
138,042,162
74,434,123
46.08%
11,090,359
671.16%
10/01/10
63,010,078
132,363,083
11,433,914
606.56%
10/01/09
59,939,152
118,630,585
58,691,433
50.53%
10,581,863
554.64%
10/01/08
60,180,721
109,844,156
49,663,435
54.79%
8,809,084
563.78%
10/01/07
61,672,881
91,346,437
29,673,556
67.52%
11,693,120
253.77%
10/01/06
55,458,957
80,937,307
25,478,350
68.52%
10,560,277
241.27%
10/01/05
50,394,100
71,677,541
21,283,441
70.31%
9,694,615
219.54%
(1)
69,353,005
(1)
47.60%
$
(1)
(1)
City of Fort Myers Municipal Firefighters' Pension Trust Fund (MFPTF)
10/01/14
$ 64,809,107
42,557,198
60.36%
7,866,259
541.01%
10/01/13
56,524,943
$
107,366,305
101,177,134
$
44,652,191
55.87%
$
7,941,816
562.24%
10/01/12
49,342,447
90,654,374
41,311,927
54.43%
8,085,699
510.93%
10/01/11
44,481,776
85,276,600
40,794,824
52.16%
8,096,721
503.84%
10/01/10
43,429,828
84,336,612
40,906,784
51.50%
7,230,421
565.76%
10/01/09
41,426,687
81,722,634
40,295,947
50.69%
7,376,175
546.30%
10/01/08
44,758,888
80,669,695
35,910,807
55.48%
6,775,452
530.01%
10/01/07
43,051,155
68,478,808
25,427,653
62.87%
8,055,337
315.66%
10/01/06
38,458,513
60,749,188
22,290,675
63.31%
6,460,951
345.01%
10/01/05
34,612,495
53,634,943
19,022,448
64.53%
6,028,303
315.55%
(1)
Figures from revised October 1, 2010, actuarial valuation report issued July 21, 2011. Revision prepared due to request from State of Florida Division of Retirement that the investment rate assumption be lowered.
92
CITY OF FORT MYERS, FLORIDA
Employees' Pension Plans
Schedule of Changes in Net Pension Liability and Related Ratios
For the Year Ended September 30, 2014
Total pension liability
Service cost
General Employees'
Police Officers'
Municipal Firefighters'
Pension Plan
Retirement System
Pension Trust Fund
2014
2014
2014
$
Investment income
Share plan allocation
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
2,711,680
$
2,525,438
10,590,158
11,505,764
-
-
$
2,070,654
8,024,792
417,144
(7,122,160)
(7,822,710)
(4,331,258)
6,179,678
6,208,492
6,181,332
$
137,496,598
143,676,276
$
145,325,865
151,534,357
$
100,416,381
106,597,713
$
6,801,604
$
10,010,777
$
5,171,336
Plan fiduciary net position
Contributions - employer
Contributions - state
Contributions - employee
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Net change in plan fiduciary net position
-
595,183
966,498
1,135,542
624,354
6,801,741
7,615,309
6,281,680
(7,122,160)
(7,822,710)
(4,331,258)
(147,068)
(97,735)
7,300,615
823,071
(88,769)
11,436,366
8,480,414
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
$
83,322,059
90,622,674
$
83,623,929
95,060,295
$
63,430,038
71,910,452
Net pension liability - ending (a) - (b)
$
53,053,602
$
56,474,062
$
34,687,261
Plan fiduciary net position as a percentage of the total pension liability
Covered-employee payroll
63.07%
$
Net pension liability as a percentage of covered-employee payroll
20,480,978
259.04%
62.73%
$
11,355,417
497.33%
67.46%
$
7,629,634
454.64%
Notes to schedule
Benefit changes.
In fiscal year 2014, benefit terms were changed in the adoption of Ordinance 3701, as follows:
1). Benefit changes required by Senate Bill 1128:
a Salary is limited to 300 hours of overtime per calendar year, beginning with the effective date of the ordinance.
b Salary shall exclude payments for accrued unused sick or annual leave, provided, however, accrued leave as of the effective date and
attributable to service earned prior to the effective date may still be included in salary for pension purposes. At retirement, salary will include
the lesser of the amount of sick or annual leave accrued on the effective date or the actual amount for which the retiree receives payment ,
regardless of whether the amount of sick or annual leave was, at some point, prior to retirement reduced below the amount on the effective
date.
2). Benefit changes not related to Senate Bill 1128:
a The multiplier for service on and after the effective date shall be 3.0% for each year of the credited service.
b For members with less than fifteen years of credited service as of the effective date and all future hires, the monthly supplemental benefit
shall be $150. Members with fifteen years or more of credited service will retain the $290 monthly supplement.
93
CITY OF FORT MYERS, FLORIDA
Employees' Pension Plans
Schedule of Changes in Net Pension Liability and Related Ratios (continued)
For the Year Ended September 30, 2014
Notes to schedule (continued)
Benefit changes (continued)
c The annual cost-of-living increase to the monthly benefits for benefits accrued prior to the effective date will remain at 3.0% and the cost-ofliving increase for benefits accrued after the effective date is 1.5%. For actuarial calculations, a blended rate was computed by using the ratio
of the current accrual (through the effective date) to the total accrual at retirement for the 3.0% cost-of-living adjustment and future accruals
(after the effective date) to total accrual at retirement for the 1.5% cost-of-living adjustment.
i. The current actuarial is based on average final compensation at retirement multiplied by the service through the effective date multiplied by
the 3.24 benefit multiplier.
ii. The future accrual is based on the average final compensation at retirement multiplied by the service after the effective date multiplied by
the 3.0% benefit multiplier.
Changes in assumptions.
Since the prior valuation for the General Employees' Pension Plan, the Board adopted a change in the investment return assumption from 7.9% to
7.75% net of fees. In addition, the payroll growth assumption utilized in amortizing the Unfunded Actuarial Accrued Liability changed from 1.4% for
last year to 0.0% this year.
Since the prior valuation for the Police Officers' Retirement System, the final salary load assumption was changed from a flat 30% to one
determined individually based on the hours accrued to date provided by the City. This change accounts for the change in definition of Salary.
Note: The City of Fort Myers implemented GASB Statement 67 in fiscal year 2014. Therefore, information is presented for the year for which
information is available.
94
CITY OF FORT MYERS, FLORIDA
Employees' Pension Plans
Schedule of Contributions
For the Year Ended September 30, 2014
General Employees'
Police Officers'
Municipal Firefighters'
Pension Plan
Retirement System
Pension Trust Fund
$
2014
6,801,604
$
10,605,960
$
5,577,263
contributions
Contribution deficiency (excess)
$
6,801,604
-
$
10,605,960
-
$
5,577,263
-
Covered employee payroll
$
20,480,978
$
11,355,417
$
7,629,634
Actuarially determined contribution
2014
2014
Contributions in relation to the actuarially determined
Contributions as a percentage of covered employee payroll
33.21%
93.40%
73.10%
Note: The City of Fort Myers implemented GASB Statement 67 in fiscal year 2014. Therefore, information is presented for the year for
which information is available.
Notes to Required Supplementary Information for the Year Ended September 30, 2014
Methods and assumptions used in calculations of actuarially determined contributions. The actuarially determined contribution
rates in the schedule of the City's contributions are calculated as of October 1, two years prior to the end of the fiscal year in which
contributions are reported. The following actuarial methods and assumptions were used to determine contribution rates reported in the
schedule:
General Employees'
(1)
Pension Plan
Police Officers'
(2)
Retirement System
Municipal Firefighters'
(3)
Pension Trust Fund
10/1/2012
10/1/2013
10/1/2013
Actuarial cost method
Entry age normal
Entry age normal
Entry age normal
Amortization method
Level percentage of
payroll, closed
Level percentage of
payroll, closed
Level percentage of
payroll, closed
29 Years
(as of 10/1/2012)
30 Years
(as of 10/1/2013)
24 Years
(as of 10/1/2013)
Valuation date
Remaining amortization period
Asset valuation method
Each year, the prior Actuarial Value of Assets is brought forward utilizing
the historical geometric 4-year average market value return. It is possible
that, over time, this technique will produce an insignificant bias above or
below market value.
Inflation
Salary increases
3.0% per year
3.0% per year
3.0% per year
(1)
6% per year until the assumed retirement age. Projected salary at
retirement is increased by expected lump sum sick and vacation payouts
for each member to account for non-regular compensation.
(2)
6% per year until the assumed retirement age. Projected salary at
retirement is increased individually (previously 30%) to account for nonregular compensation.
(3)
6% per year (previously 7.0%) until the assumed retirement age.
Projected salary at retirement is increased individually (previously 30%) to
account for non-regular compensation.
95
CITY OF FORT MYERS, FLORIDA
Employees' Pension Plans
Schedule of Contributions
For the Year Ended September 30, 2014
Notes to Required Supplementary Information for the Year Ended September 30, 2014
(continued)
Investment rate of return
(1)
8.0% (previously 8.4%) per year, compounded annually, net of
investment related expenses.
(2)
8.0% per year, compounded annually, net of investment-related
expenses.
(3)
8.0% (previously 8.5%) per year, compounded annually, net of
investment related expenses.
Payroll growth
Cost of living adjustment (COLA)
(1)
Up to 5% per year; 2.10% used for 10/1/2012 valuation.
(2)
Up to 5% per year; 4.08% used for 10/01/2013 valuation.
(3)
5% per year
(1)
2.5% per year for normal and early retirees, beginning one year after
retirement. COLA is for Tier 3 and Tier 4 members only.
(2)
Payments on 3% increase vary, based on retirement date. See Note 10
for specific disclosure.
(3)
Retirement age
3% per year at age 60, or two years after normal retirement date.
(1)
Earlier of age 63 with six years of service, or thirty years of service,
regardless of age, or the age when service plus age equals 82, but no
earlier than one year after the valuation date.
(2)
Earlier of age 55 or the completion of twenty-five years of credited
service, regardless of age. Also, any member that has reached normal
retirement age is assumed to continue employment for one additional year.
(3)
Earlier of age 53 or the completion of twenty-six years of credited
service, regardless of age. Also, any member that has reached normal
retirement age is assumed to continue employment for one additional year.
Early retirement
(1)
Commencing with the earliest early retirement age (age 55 with seven
years of service, or age 60 with five years of service), members are
assumed to retire with an immediate subsidized benefit at the rate of 5%
per year.
(2)
Commencing with attainment of early retirement status, members are
assumed to retire with an immediate subsidized benefit at the rate of 5%
per year.
(3)
Commencing with attainment of early retirement status (age 45 with ten
years of service), members are assumed to retire with an immediate
subsidized benefit at the rate of 5% per year.
Termination rates
See table on following page.
Disability rates
See table on following page.
Mortality
(1)
RP-2000 Combined Healthy Table projected to valuation date for healthy
lives. RP2000 Disabled Table for disabled lives.
(2)
RP-2000 Table with no projection. Based on a study of over 650 public
safety funds, this table reflects a 10% margin for future mortality
improvements. Disable lives set forward five years.
(3)
RP-2000 Table with no projection. Based on a study of over 650 public
safety funds, this table reflects a 10% margin for future mortality
improvements. Disable lives set forward five years.
96
CITY OF FORT MYERS, FLORIDA
Employees' Pension Plans
Schedule of Contributions
For the Year Ended September 30, 2014
Notes to Required Supplementary Information for the Year Ended September 30, 2014
(continued)
Other information
GEPP
PORS
MFPTF
Termination and Disability Rate Tables.
% Terminating
% Becoming disabled
Age
during the year
during the year
20
27.8%
0.07%
30
24.2%
0.11%
40
13.2%
0.19%
50
6.0%
0.51%
60
6.0%
1.66%
20
11.3%
0.05%
30
8.7%
0.06%
40
5.6%
0.12%
50
1.3%
0.43%
20
9.3%
0.14%
30
7.9%
0.18%
40
4.3%
0.30%
50
1.1%
1.00%
97
CITY OF FORT MYERS, FLORIDA
Employees' Pension Plans
Schedule of Investment Returns
For the Year Ended September 30, 2014
Annual money-weighted rate of return, net of investment expense for the pension plans:
For the year ended September 30,
General Employees'
Police Officers'
Municipal Firefighters'
Pension Plan
Retirement System
Pension Trust Fund
2014
8.22%
9.75%
10.36%
2013
13.09%
11.52%
13.70%
2012
16.23%
16.70%
17.70%
2011
-1.23%
-2.26%
1.17%
2010
8.84%
7.59%
8.44%
2009
0.12%
1.48%
-1.25%
2008
-15.90%
-15.90%
-14.96%
2007
15.53%
14.26%
12.63%
2006
7.85%
6.55%
7.27%
2005
12.83%
9.86%
8.30%
98
CITY OF FORT MYERS, FLORIDA
Other Postemployment Benefits Plan
Schedule of Funding Progress
For the Year Ended September 30, 2014
Actuarial Accrued
Unfunded Actuarial
Actuarial
Actuarial Value
Liability
Accrued Liability
Funded
Annual Covered
as a % of
Valuation
of Assets
(Entry Age)
(UAAL)
Ratio
Payroll
Covered Payroll
Date
(a)
(b)
(b-a)
(a/b)
(c)
((b-a)/c)
10/01/12
$
-
$
20,978,235
$
UAAL
20,978,235
0.00%
$
35,623,010
58.9%
10/01/10
-
21,285,518
21,285,518
0.00%
39,836,951
53.4%
10/01/08
-
16,271,673
16,271,673
0.00%
40,053,162
40.6%
10/01/07
-
22,351,815
22,351,815
0.00%
49,879,048
44.8%
99
100
Combining Statements
and Schedules
CITY OF FORT MYERS
Major Governmental Funds
Debt Service Fund
Revenue Bonds and Notes – To account for the accumulation of resources and the payment of principal
and interest related to the City’s Governmental Unit Note (Loan from the City of Gulf Breeze, Florida Local
Government Loan Program, Series 1999); Governmental Unit Note, Series 2005C (Loan from the Florida
Municipal Loan Council Revenue Bond, Series 2005C); Improvement and Refunding Revenue Bonds,
Series 2006; Improvement Refunding Revenue Bonds, Series 2007; Capital Improvement and Refunding
Revenue Bonds, Series 2014A, and; Taxable Capital Improvement Refunding Revenue Bonds, Series
2014B.
101
102
CITY OF FORT MYERS, FLORIDA
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Revenue Bonds and Notes
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
EXPENDITURES
Debt service:
Principal retirement
Interest
Fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Refunding bonds issued
Premiums on refunding bonds issued
Payments to refunded bond escrow agent
Total other financing sources and uses
Net change in fund balances
Fund balances - beginning
Fund balances - ending
1,447,400
1,447,400
$
1,447,800
1,447,800
$
3,877
3,877
Variance with
Final Budget
$
(1,443,923)
(1,443,923)
7,765,100
4,543,800
10,700
12,319,600
7,765,100
4,543,800
523,436
12,832,336
7,262,000
4,375,264
513,200
12,150,464
503,100
168,536
10,236
681,872
(10,872,200)
(11,384,536)
(12,146,587)
(762,051)
10,872,200
10,872,200
10,872,200
(10,604,000)
40,064,390
1,778,586
(30,726,640)
11,384,536
10,144,248
(10,604,000)
39,910,000
1,778,586
(30,726,640)
10,502,194
(727,952)
(154,390)
(882,342)
(1,644,393)
(1,644,393)
$
Actual Amounts
7,262,753
7,262,753
$
The notes to financial statements are an integral part of this statement.
103
7,262,753
7,262,753
$
7,265,355
5,620,962
$
2,602
(1,641,791)
CITY OF FORT MYERS
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenue sources that are restricted, committed, or
assigned to expenditures for particular purposes.
Law Enforcement Trust – To account for the proceeds collected under the Florida Contraband Forfeiture
Act to be used for school resource officers, crime prevention, safe neighborhoods, drug abuse education
and prevention programs, and for other law enforcement purposes and providing matching funds to obtain
federal grants.
Federal Forfeiture – To account for federal forfeiture proceeds, which can be expended for any activity
calculated to enhance future investigations, support investigations and operations that may result in further
seizures and forfeitures.
FEMA Disaster Grant – To account for the expenditures related to the damage caused by Hurricane
Charley and the associated cleanup cost to be reimbursed by the Federal government.
Grants – To account for monies, received from various Federal, State and local agencies or private
foundations, which must be expended according to the terms of grant requirements.
Special Assessment Geographical Area Administration (SAGA) – To account for Special Assessment
District administration fees.
Police Training – To account for the $2 assessment paid by persons convicted for violation of city
ordinances. This assessment may be used for criminal justice education and training for the local
government unit’s officers and support personnel.
Street Light Maintenance – To account for the accumulation of funds to provide repairs and maintenance
for certain street light poles and ballasts.
Street Maintenance – To account for funds received from the State for traffic light and street maintenance.
Winkler Safe Neighborhood – To account for the debt service payments related to bonds issued by the
City directly related to the Winkler Safe Neighborhood Improvement District.
Public Art Fund – To account for proceeds from in-lieu contributions and all other revenue to support Public
Art.
Law Enforcement Equipment Fund – To account for donations required of developers for law enforcement
equipment purchases necessitated by commercial and residential development.
Attainable Workforce Housing Fund – To account for resources from developer contributions to provide
loans to eligible residents with income of 150% of the median income for Lee County.
Hurricane Shelter – To account for developer contributions made to rehabilitate downtown buildings for use
as hurricane shelters.
Public-Private Parking – To account for developer fees paid in lieu of the provision for parking.
East Riverside Community Center – To account for operations and maintenance of the community center,
built for the citizens and visitors of Fort Myers and Lee County.
104
CITY OF FORT MYERS
Nonmajor Governmental Funds (continued)
Special Revenue Funds (continued)
Para-Transit Fund – To account for developer contributions made annually for a downtown trolley system.
Patrons of the Palms – To account for operations and resources related to maintaining palm trees, to
enhance the City’s identity as the “City of Palms”.
State Housing Initiative Partnership Program – To account for funds received from the State of Florida to
assist very low, low, and moderate income persons or families in becoming single-family homeowners.
Community Redevelopment Agency:
Downtown Redevelopment Area – To account for the operations and resources related to the
Downtown Redevelopment Area.
Other Redevelopment Areas – To account for the administration and resources related to
implementing the Cleveland Avenue Redevelopment Areas, the Central Fort Myers Redevelopment
Area, the Martin Luther King Redevelopment Areas, Velasco Village Redevelopment Area, the East
Fort Myers Redevelopment Area, the Eastwood Village Redevelopment Area, and the DunbarMichigan Redevelopment Area.
Community Development Block Grant Program – To account for monies received from the U.S.
Department of Housing and Urban Development for community redevelopment.
Crime Prevention Fund – To account for monies received from fines, which are used to advance the crime
prevention program.
Permanent Fund
The permanent fund is used to report resources that are legally restricted to the extent that only earnings,
not principal, may be used for purposes that support the government’s programs.
Ned Fould’s Police Award Fund – To account for a donation to the City to provide an award to the City’s
Police Officer of the Year. The interest is awarded to the Officer of the Year with the principal being retained
in the fund.
105
CITY OF FORT MYERS, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2014
Special Revenue Funds
Law
Enforcement
Trust
ASSETS
Cash and cash equivalents
Investments
Accounts receivable, net
Interest receivable
Due from other governmental agencies
Prepaid items
Notes receivable
Allowance for notes receivable
Assets held for resale
Total assets
LIABILITIES
Accounts and contracts payable
Accrued and other liabilities
Due to other funds
Due to other governmental agencies
Funds held in escrow
Unearned revenue - other
Advances from other funds
Total liabilities
$
$
$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - grant receipts
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid items
Asset held for resale
Public safety principal, nonexpendable
Restricted for:
Donations received
CRA
Economic environment
Law enforcement programs
Physical environment
Transportation
Committed to:
Law enforcement programs
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
$
Federal
Forfeiture
75,919
30,592
187
106,698
$
8,626
8,626
$
$
FEMA Disaster
Grant
69,959
28,190
179
3,995
102,323
1,900
1,900
$
$
$
18,019
7,361
35
25,415
-
SAGA
Administration
Grants
$
$
$
563,771
563,771
4,515
5,961
549,595
14,860
574,931
$
$
$
129,830
52,316
293
182,439
-
-
-
6,255
6,255
-
-
-
-
-
-
-
98,072
-
100,423
-
19,160
-
-
182,439
-
98,072
100,423
19,160
(11,160)
(11,160)
182,439
106,698
$
102,323
The notes to financial statements are an integral part of this statement.
106
$
25,415
$
563,771
$
182,439
Special Revenue Funds
Police
Training
$
$
$
$
Street Light
Maintenance
Street
Maintenance
76,013
30,630
173
2,036
108,852
$
69,998
28,595
219
98,812
$
129
526
655
$
-
$
$
$
Law
Enforcement
Equipment
Public Art
326,239
131,460
1,154
473,637
932,490
$
91,795
3,432
95,227
$
$
87,025
35,068
238
122,331
-
$
$
$
Attainable
Workforce
Housing
1,582
646
4
2,232
-
$
$
$
Hurricane
Shelter
519,118
212,067
1,656
94,796
(94,796)
732,841
13,315
13,315
$
$
243,259
99,375
550
343,184
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
108,197
-
98,812
837,263
122,331
-
2,232
-
719,526
-
343,184
-
108,197
98,812
837,263
122,331
2,232
719,526
343,184
108,852
$
98,812
$
932,490
$
122,331
$
2,232
$
732,841
$
343,184
(continued)
107
CITY OF FORT MYERS, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2014
Special Revenue Funds
Public-Private
Parking
ASSETS
Cash and cash equivalents
Investments
Accounts receivable, net
Interest receivable
Due from other governmental agencies
Prepaid items
Notes receivable
Allowance for notes receivable
Assets held for resale
Total assets
LIABILITIES
Accounts and contracts payable
Accrued and other liabilities
Due to other funds
Due to other governmental agencies
Funds held in escrow
Unearned revenue - other
Advances from other funds
Total liabilities
$
$
$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - grant receipts
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid items
Asset held for resale
Public safety principal, nonexpendable
Restricted for:
Donations received
CRA
Economic environment
Law enforcement programs
Physical environment
Transportation
Committed to:
Law enforcement programs
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
$
East Riverside
Community
Center
262,884
105,930
594
369,408
$
-
$
$
Patrons of the
Palms
Para-Transit
16,372
6,597
37
23,006
$
-
$
$
100,023
40,305
24,775
357
165,460
$
11,476
11,476
$
$
State Housing
Initiative
Partnership
13,144
5,296
30
18,470
$
333,332
134,318
617
2,230,601
(2,230,601)
$
468,267
-
$
22,580
714
23,294
-
-
-
-
85,442
85,442
-
-
-
-
-
369,408
-
23,006
-
153,984
-
18,470
-
359,531
-
369,408
23,006
153,984
18,470
359,531
369,408
$
23,006
The notes to financial statements are an integral part of this statement.
108
$
165,460
$
18,470
$
468,267
Special Revenue Funds
Community
Community
Redevelopment
Development
Agency
Block Grant
$
$
$
$
Crime
Prevention
2,296,584
944,240
78,050
7,497
12,994
258,010
3,597,375
$
92,070
37,100
149,009
3,062,410
(3,062,410)
375,000
$
653,179
$
205,459
336
13
78,050
617,000
900,858
$
$
94,178
1,221
375,000
198,533
668,932
Permanent
Fund
Ned Fould's
Police Award
Fund
$
43,639
17,584
85
354
61,662
-
$
$
$
Total Nonmajor
Governmental
Funds
1,707
697
4
2,408
408
408
$
$
$
4,776,716
1,948,367
102,825
13,909
1,192,802
12,994
5,387,807
(5,387,807)
633,010
8,680,623
440,597
14,090
549,595
375,013
408
302,919
617,000
2,299,622
-
14,718
14,718
-
-
106,415
106,415
12,994
258,010
-
-
-
2,000
12,994
258,010
2,000
2,425,513
-
-
-
-
1,749,909
2,425,513
359,531
308,924
201,599
936,075
2,696,517
(30,471)
(30,471)
61,662
61,662
2,000
61,662
(41,631)
6,274,586
3,597,375
$
653,179
$
61,662
$
2,408
109
$
8,680,623
CITY OF FORT MYERS, FLORIDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2014
Special Revenue Funds
Law
Enforcement
Trust
REVENUES
Taxes
Intergovernmental revenue
Fines and forfeitures
Miscellaneous
Contributions - private source
Total revenues
$
EXPENDITURES
Current:
Public Safety:
Police
Fire
Transportation
Economic environment
Debt service:
Principal retirement
Interest
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
Federal
Forfeiture
14,086
12,336
26,422
$
FEMA Disaster
Grant
18,214
141,210
159,424
$
86
86
Grants
$
2,309,314
2,309,314
SAGA
Administration
$
319
319
59,661
-
147,504
-
-
239,882
1,985,865
-
-
59,661
147,504
-
2,225,747
-
(33,239)
11,920
86
83,567
319
-
-
-
9,720
9,720
-
(33,239)
11,920
86
93,287
319
131,311
98,072
$
88,503
100,423
The notes to financial statements are an integral part of this statement.
110
$
19,074
19,160
$
(104,447)
(11,160)
$
182,120
182,439
Special Revenue Funds
Police
Training
$
$
29,978
29,978
Street Light
Maintenance
Street
Maintenance
$
$
396
396
2,466,937
539,917
424,500
3,431,354
Winkler Safe
Neighborhood
$
66
66
Law
Enforcement
Equipment
Public Art
$
247
1,209
1,456
$
Attainable
Workforce
Housing
7
7
$
2,869
2,869
30,298
-
18,290
-
3,462,320
-
-
-
-
180,729
30,298
18,290
3,462,320
-
-
-
180,729
(320)
(17,894)
(30,966)
66
1,456
7
(177,860)
-
-
(273,057)
(273,057)
(151,802)
(151,802)
(6,049)
(6,049)
-
-
(320)
(17,894)
(304,023)
(151,736)
(4,593)
7
(177,860)
108,517
108,197
$
116,706
98,812
$
1,141,286
837,263
$
151,736
-
$
126,924
122,331
$
2,225
2,232
$
897,386
719,526
(continued)
111
CITY OF FORT MYERS, FLORIDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2014
Special Revenue Funds
East Riverside
Public-Private
Community
Parking
Center
Para-Transit
Hurricane
Shelter
REVENUES
Taxes
Intergovernmental revenue
Fines and forfeitures
Miscellaneous
Contributions - private source
Total revenues
$
EXPENDITURES
Current:
Public Safety:
Police
Fire
Transportation
Economic environment
Debt service:
Principal retirement
Interest
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
1,173
1,173
$
646
646
$
40
40
$
Patrons of the
Palms
665
49,220
49,885
$
32
32
-
-
-
123,288
-
-
-
-
-
123,288
-
1,173
646
40
(73,403)
32
-
-
-
-
-
1,173
646
40
(73,403)
32
342,011
343,184
$
368,762
369,408
The notes to financial statements are an integral part of this statement.
112
$
22,966
23,006
$
227,387
153,984
$
18,438
18,470
State Housing
Initiative
Partnership
$
$
102,190
1,708
103,898
Special Revenue Funds
Community
Community
Development
Redevelopment
Block Grant
Agency
$
930,267
(137,576)
792,691
$
1,013,565
185,675
1,199,240
Permanent
Fund
Ned Fould's
Police Award
Fund
Crime
Prevention
$
4,586
85
4,671
$
Total Nonmajor
Governmental
Funds
-
$
3,397,204
3,964,986
36,886
664,462
50,429
8,113,967
131,618
2,502,513
1,077,545
-
-
477,345
1,985,865
3,603,898
3,892,405
131,618
496,154
181,549
3,180,216
25,000
3,225
1,105,770
-
-
521,154
184,774
10,665,441
(27,720)
(2,387,525)
93,470
4,671
-
(2,551,474)
-
2,011,951
(1,355,119)
656,832
(82,725)
(82,725)
-
-
2,021,671
(1,868,752)
152,919
(27,720)
(1,730,693)
10,745
4,671
-
(2,398,555)
387,251
359,531
$
4,427,210
2,696,517
$
(41,216)
(30,471)
$
56,991
61,662
113
$
2,000
2,000
$
8,673,141
6,274,586
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Law Enforcement Trust Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Fines and forfeitures
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Police
Total expenditures
Excess (deficiency) of
revenues over expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
5,000
80,000
85,000
$
Actual
Amounts
5,000
80,000
85,000
$
14,086
12,336
26,422
Variance with
Final Budget
$
9,086
(67,664)
(58,578)
85,000
85,000
85,000
85,000
59,661
59,661
25,339
25,339
-
-
(33,239)
(33,239)
-
-
(33,239)
(33,239)
131,311
131,311
$
131,311
131,311
The notes to financial statements are an integral part of this statement.
114
$
131,311
98,072
$
(33,239)
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Federal Forfeiture Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Fines and forfeitures
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Police
Total expenditures
Excess (deficiency) of
revenues over expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
40,000
65,500
105,500
$
Actual
Amounts
40,000
111,500
151,500
$
18,214
141,210
159,424
Variance with
Final Budget
$
(21,786)
29,710
7,924
105,500
105,500
151,500
151,500
147,504
147,504
3,996
3,996
-
-
11,920
11,920
-
-
11,920
11,920
88,503
88,503
88,503
88,503
$
The notes to financial statements are an integral part of this statement.
115
$
88,503
100,423
$
11,920
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
FEMA Disaster Grant
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
-
$
Actual
Amounts
-
$
Variance with
Final Budget
86
86
$
86
86
Excess (deficiency) of revenues
over expenditures
-
-
86
86
Net change in fund balances
-
-
86
86
Fund balances - beginning
Fund balances - ending
$
19,074
19,074
19,074
19,074
$
The notes to financial statements are an integral part of this statement.
116
$
19,074
19,160
$
86
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Grants
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Intergovernmental revenue
Total revenues
$
EXPENDITURES
Current:
Police
Fire
Total expenditures
Excess (deficiency) of
revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing source (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
2,590,653
2,590,653
$
Actual
Amounts
3,918,224
3,918,224
$
Variance with
Final Budget
2,309,314
2,309,314
$ (1,608,910)
(1,608,910)
608,053
1,982,600
2,590,653
839,233
3,088,761
3,927,994
239,882
1,985,865
2,225,747
599,351
1,102,896
1,702,247
-
(9,770)
83,567
93,337
-
9,770
9,770
9,720
9,720
(50)
(50)
-
-
93,287
93,287
(104,446)
(104,446)
$
(104,446)
(104,446)
The notes to financial statements are an integral part of this statement.
117
$
(104,447)
(11,160)
$
(1)
93,286
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Special Assessment Geographical Area Administration
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
-
$
Actual
Amounts
-
$
319
319
Variance with
Final Budget
$
319
319
Excess (deficiency) of revenues
over expenditures
-
-
319
319
Net change in fund balances
-
-
319
319
Fund balances - beginning
Fund balances - ending
$
182,120
182,120
$
182,120
182,120
The notes to financial statements are an integral part of this statement.
118
$
182,120
182,439
$
319
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Police Training Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Police
Total expenditures
Excess (deficiency) of
revenues over expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
61,300
61,300
$
Actual
Amounts
61,300
61,300
$
29,978
29,978
Variance with
Final Budget
$
(31,322)
(31,322)
61,300
61,300
61,300
61,300
30,298
30,298
31,002
31,002
-
-
(320)
(320)
-
-
(320)
(320)
108,517
108,517
$
108,517
108,517
The notes to financial statements are an integral part of this statement.
119
$
108,517
108,197
$
(320)
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Street Light Maintenance Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Transportation
Total expenditures
Excess (deficiency) of
revenues over expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
18,290
18,290
$
Actual
Amounts
18,290
18,290
$
396
396
Variance with
Final Budget
$
(17,894)
(17,894)
18,290
18,290
18,290
18,290
18,290
18,290
-
-
-
(17,894)
(17,894)
-
-
(17,894)
(17,894)
116,706
116,706
$
116,706
116,706
The notes to financial statements are an integral part of this statement.
120
$
116,706
98,812
$
(17,894)
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Street Maintenance Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Taxes
Intergovernmental revenue
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Transportation
Total expenditures
Excess (deficiency) of
revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing source (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
2,300,000
485,000
956,400
3,741,400
$
Actual
Amounts
2,300,000
485,000
1,209,307
3,994,307
$
2,466,937
539,917
424,500
3,431,354
Variance with
Final Budget
$
166,937
54,917
(784,807)
(562,953)
3,647,700
3,647,700
3,657,700
3,657,700
3,462,320
3,462,320
195,380
195,380
93,700
336,607
(30,966)
(367,573)
(93,700)
(93,700)
(336,607)
(336,607)
(273,057)
(273,057)
63,550
63,550
-
-
(304,023)
(304,023)
1,141,286
1,141,286
$
1,141,286
1,141,286
The notes to financial statements are an integral part of this statement.
121
$
1,141,286
837,263
$
(304,023)
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Winkler Safe Neighborhood Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing source (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
148,200
148,200
$
Actual
Amounts
148,200
148,200
$
Variance with
Final Budget
66
66
$
(148,134)
(148,134)
148,200
148,200
66
(148,134)
(148,200)
(148,200)
(148,200)
(148,200)
(151,802)
(151,802)
(3,602)
(3,602)
-
-
(151,736)
(151,736)
151,736
151,736
$
151,736
151,736
The notes to financial statements are an integral part of this statement.
122
$
151,736
-
$
(151,736)
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Public Art Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Contributions - private source
Total revenues
$
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing source (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
-
$
Actual
Amounts
103,720
103,720
$
247
1,209
1,456
Variance with
Final Budget
$
(103,473)
1,209
(102,264)
-
103,720
1,456
(102,264)
-
(103,720)
(103,720)
(6,049)
(6,049)
97,671
97,671
-
-
(4,593)
(4,593)
126,924
126,924
$
126,924
126,924
The notes to financial statements are an integral part of this statement.
123
$
126,924
122,331
$
(4,593)
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Law Enforcement Equipment Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
-
$
Actual
Amounts
-
$
Variance with
Final Budget
7
7
$
7
7
Excess (deficiency) of revenues
over expenditures
-
-
7
7
Net change in fund balances
-
-
7
7
Fund balances - beginning
Fund balances - ending
$
2,225
2,225
2,225
2,225
$
The notes to financial statements are an integral part of this statement.
124
$
2,225
2,232
$
7
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Attainable Workforce Housing Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Economic environment
Total expenditures
Excess (deficiency) of
revenues over expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
-
$
Actual
Amounts
357,390
357,390
$
2,869
2,869
Variance with
Final Budget
$
(354,521)
(354,521)
-
357,390
357,390
180,729
180,729
176,661
176,661
-
-
(177,860)
(177,860)
897,386
897,386
897,386
897,386
(177,860)
897,386
719,526
(177,860)
(177,860)
$
The notes to financial statements are an integral part of this statement.
125
$
$
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Hurricane Shelter Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
-
$
Actual
Amounts
-
$
1,173
1,173
Variance with
Final Budget
$
1,173
1,173
Excess (deficiency) of revenues
over expenditures
-
-
1,173
1,173
Net change in fund balances
-
-
1,173
1,173
Fund balances - beginning
Fund balances - ending
$
342,011
342,011
$
342,011
342,011
The notes to financial statements are an integral part of this statement.
126
$
342,011
343,184
$
1,173
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Public-Private Parking Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
-
$
Actual
Amounts
-
$
646
646
Variance with
Final Budget
$
646
646
Excess (deficiency) of revenues
over expenditures
-
-
646
646
Net change in fund balances
-
-
646
646
Fund balances - beginning
Fund balances - ending
$
368,762
368,762
$
368,762
368,762
The notes to financial statements are an integral part of this statement.
127
$
368,762
369,408
$
646
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
East Riverside Community Center Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
-
$
Actual
Amounts
-
$
Variance with
Final Budget
40
40
$
40
40
Excess (deficiency) of revenues
over expenditures
-
-
40
40
Net change in fund balances
-
-
40
40
Fund balances - beginning
Fund balances - ending
$
22,966
22,966
22,966
22,966
$
The notes to financial statements are an integral part of this statement.
128
$
22,966
23,006
$
40
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Para-Transit Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Contributions - private source
Total revenues
$
EXPENDITURES
Current:
Transportation
Total expenditures
Excess (deficiency) of
revenues over expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
113,400
113,400
$
Actual
Amounts
127,136
127,136
$
665
49,220
49,885
Variance with
Final Budget
$
(126,471)
49,220
(77,251)
113,400
113,400
127,136
127,136
123,288
123,288
3,848
3,848
-
-
(73,403)
(73,403)
-
-
(73,403)
(73,403)
227,387
227,387
$
227,387
227,387
The notes to financial statements are an integral part of this statement.
129
$
227,387
153,984
$
(73,403)
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Patrons of the Palms Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Miscellaneous
Total revenues
$
-
$
Actual
Amounts
-
$
Variance with
Final Budget
32
32
$
32
32
Excess (deficiency) of revenues
over expenditures
-
-
32
32
Net change in fund balances
-
-
32
32
Fund balances - beginning
Fund balances - ending
$
18,438
18,438
18,438
18,438
$
The notes to financial statements are an integral part of this statement.
130
$
18,438
18,470
$
32
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
State Housing Initiative Partnership Program (SHIP)
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Intergovernmental revenue
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Economic environment
Total expenditures
Excess (deficiency) of
revenues over expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
76,643
76,643
$
Actual
Amounts
288,445
288,445
$
102,190
1,708
103,898
Variance with
Final Budget
$
(186,255)
1,708
(184,547)
76,643
76,643
288,445
288,445
131,618
131,618
156,827
156,827
-
-
(27,720)
(27,720)
-
-
(27,720)
(27,720)
387,251
387,251
$
387,251
387,251
The notes to financial statements are an integral part of this statement.
131
$
387,251
359,531
$
(27,720)
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Community Redevelopment Agency
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Taxes
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Economic environment
Total current
Debt service:
Principal retirement
Interest
Total debt service
Total expenditures
Excess (deficiency) of
revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing source (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
818,800
1,859,700
2,678,500
$
921,636
2,344,692
3,266,328
Actual
Amounts
$
930,267
(137,576)
792,691
Variance with
Final Budget
$
8,631
(2,482,268)
(2,473,637)
2,714,200
2,714,200
3,027,760
3,027,760
2,502,513
2,502,513
525,247
525,247
496,200
181,500
677,700
3,391,900
496,200
181,500
677,700
3,705,460
496,154
181,549
677,703
3,180,216
46
(49)
(3)
525,244
(713,400)
(439,132)
(2,387,525)
(1,948,393)
2,013,400
1,300,000
3,313,400
2,009,456
1,029,676
3,039,132
2,011,951
(1,355,119)
656,832
2,495
(2,384,795)
(2,382,300)
2,600,000
2,600,000
(1,730,693)
(4,330,693)
4,427,210
2,696,517
$ (4,330,693)
4,427,210
7,027,210
$
4,427,210
7,027,210
The notes to financial statements are an integral part of this statement.
132
$
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Community Development Block Grant Program
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Intergovernmental revenue
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Economic environment
Total current
Debt service:
Principal retirement
Interest
Total debt service
Total expenditures
Excess (deficiency) of
revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing source (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
706,509
706,509
$
Actual
Amounts
1,996,483
362,055
2,358,538
$
1,013,565
185,675
1,199,240
Variance with
Final Budget
$
(982,918)
(176,380)
(1,159,298)
674,509
674,509
2,243,793
2,243,793
1,077,545
1,077,545
1,166,248
1,166,248
27,000
5,000
32,000
706,509
27,000
5,020
32,020
2,275,813
25,000
3,225
28,225
1,105,770
2,000
1,795
3,795
1,170,043
-
82,725
93,470
10,745
-
(82,725)
(82,725)
(82,725)
(82,725)
-
-
-
10,745
10,745
(41,216)
(41,216)
$
(41,216)
(41,216)
The notes to financial statements are an integral part of this statement.
133
$
(41,216)
(30,471)
$
10,745
CITY OF FORT MYERS, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Crime Prevention Fund
For the Year Ended September 30, 2014
Budgeted Amounts
Original
Final
REVENUES
Fines and forfeitures
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Police
Total expenditures
Excess (deficiency) of
revenues over expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
5,000
20,000
25,000
$
Actual
Amounts
5,000
20,000
25,000
$
Variance with
Final Budget
4,586
85
4,671
$
(414)
(19,915)
(20,329)
25,000
25,000
25,000
25,000
-
25,000
25,000
-
-
4,671
4,671
-
-
4,671
4,671
56,991
56,991
56,991
56,991
$
The notes to financial statements are an integral part of this statement.
134
$
56,991
61,662
$
4,671
CITY OF FORT MYERS
Nonmajor Enterprise Funds
The City’s nonmajor enterprise funds report activities for which fees are charged to external users for goods
or services.
Building Permits and Inspections – To account for operations and maintenance related to the City’s
issuance of building permits and the subsequent inspections.
Stormwater – To account for the operations and maintenance of stormwater run-off mechanisms
throughout the City.
Fort Myers Country Club – To account for the operations and maintenance related to the City-owned Fort
Myers Country Club.
Eastwood Golf Course – To account for the operations and maintenance related to the City-owned
Eastwood Golf Course.
Yacht Basin – To account for the operations and maintenance of the City-owned yacht basin and dock
facilities.
Harborside Event Center – To account for the operations and maintenance of the Harborside Convention
Center and Exhibition Hall. These facilities are available to the public on a rental basis or for City-sponsored
functions.
Downtown Parking Garages – To account for the operations and maintenance related to the City-owned
Main Street Parking Garage and City of Palms Parking Garage.
Skatium – To account for the operations and maintenance related to the City-owned skating and recreation
center.
Department of Cultural and Historic Affairs – To consolidate and account for the operations and
maintenance of the Imaginarium Science Center, the Burrough’s Home, and Southwest Florida Museum of
History.
135
CITY OF FORT MYERS, FLORIDA
Combining Statement of Net Position
Nonmajor Enterprise Funds
September 30, 2014
Building
Permits and
Inspections
Fort Myers
Country Club
Stormwater
Eastwood
Golf Course
ASSETS
Current assets:
Cash and cash equivalents
Investments
Restricted cash and cash equivalents
Restricted investments
Accounts receivable, net
Interest receivable
Restricted interest receivable
Due from other governmental agencies
Inventories
Prepaid items
Total current assets
$ 4,409,919
1,776,592
44,940
18,359
7,966
6,257,776
$ 2,874,552
1,157,692
112,638
46,014
1,811
4,265
593,353
4,790,325
$ 1,495,704
4,881
29,568
597,844
128
463,539
33,883
2,625,547
Noncurrent assets:
Intangible assets, net
Land and improvements
Construction in progress
Buildings, net
Improvements other than buildings, net
Equipment, net
Total noncurrent assets
Total assets
63,876
63,876
6,321,652
42,640
367,055
9,799,551
826,362
11,035,608
15,825,933
168,966
204,035
5,586,638
31,221
5,990,860
8,616,407
729,261
1,648,250
1,490,502
30,434
3,898,447
4,097,596
-
-
6,237
6,237
-
LIABILITIES
Current liabilities:
Accounts and contracts payable
Accrued and other liabilities
Due to other governmental agencies
Customer deposits
Compensated absences
Accrued interest payable
Notes payable
Revenue bonds payable
Total current liabilities
45,168
4,532
31,798
31,500
34,586
147,584
855,082
920
19,920
875,922
2,530,811
19,238
77
5,132
30,294
2,585,552
16,005
4,598
4,474
32,851
57,928
Noncurrent liabilities:
Compensated absences
Other postemployment benefits payable
Notes payable
Revenue bonds payable
Total noncurrent liabilities
Total liabilities
49,825
340,890
390,715
538,299
41,263
119,323
160,586
1,036,508
27,528
68,870
294,906
391,304
2,976,856
6,388
77,954
84,342
142,270
63,876
10,323,260
3,147,131
3,898,447
5,719,477
$ 5,783,353
718,805
3,747,360
$ 14,789,425
2,524,766
24,382
(50,491)
$ 5,645,788
56,879
$ 3,955,326
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts on refunding
Total deferred outflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Capital projects
Debt service
Renewal and replacement
Transportation
Unrestricted
Total net position
The notes to financial statements are an integral part of this statement.
136
$
114,373
46,070
3,176
1,297
350
33,883
199,149
Harborside
Event Center
Yacht Basin
$
202,282
79,524
357,898
145,922
30,985
240
823
128,794
946,468
$
211,954
85,098
60,708
24,773
45,936
655
42
429,166
Downtown
Parking
Garages
$
Dept of Cultural
and Historic
Affairs
Skatium
280,539
113,020
31,012
1,843
293
47,083
473,790
$
12,045
4,360
1,736
709
25,340
5,368
49,558
$
138,063
55,155
64,732
26,159
343
196
28,568
313,216
Total Nonmajor
Enterprise
Funds
$
9,739,431
3,322,392
706,408
862,920
104,072
14,240
1,061
1,056,892
162,730
114,849
16,084,995
195,315
3,176
4,496,689
1,160
4,696,340
5,642,808
399,327
2,734,222
35,215
3,168,764
3,597,930
551,713
3,052,754
3,604,467
4,078,257
21,704
6,274
27,978
77,536
788,866
690,148
17,995
1,497,009
1,810,225
42,640
2,833,448
367,055
8,354,289
21,426,590
959,327
33,983,349
50,068,344
-
-
-
-
-
6,237
6,237
48,381
5,536
6,116
33,534
7,754
14,743
204,916
320,980
102,874
4,485
1,392
77,073
15,019
200,843
11,568
3,689
2,666
17,923
30,048
7,478
1,405
1,040
18,478
58,449
59,088
10,835
1,133
17,931
9,324
98,311
3,699,025
57,622
50,084
163,744
137,932
19,875
204,916
30,294
4,363,492
16,294
73,323
3,748,043
3,837,660
4,158,640
21,773
144,105
165,878
366,721
17,923
16,746
85,837
102,583
161,032
41,582
122,693
164,275
262,586
221,399
1,032,995
3,748,043
294,906
5,297,343
9,660,835
743,381
3,168,764
3,602,133
27,978
1,497,009
26,471,979
378,371
71,879
290,537
$ 1,484,168
177
6,881
55,387
$ 3,231,209
26,500
431,701
$ 4,060,334
(111,474)
(83,496)
72,023
(21,393)
1,547,639
3,622,119
24,382
150,783
26,500
10,117,983
40,413,746
$
137
$
$
CITY OF FORT MYERS, FLORIDA
Combining Statement of Revenues, Expenditures, and Changes in Net Position
Nonmajor Enterprise Funds
For the Year Ended September 30, 2014
Building
Permits and
Inspections
OPERATING REVENUES
Charges for services
Rent
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Personnel services
Materials and supplies
Contractual services
General and administrative
Utilities
Repairs and maintenance
Rentals
Travel
Insurance
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Operating grants and contributions
Interest income
Interest expense and bond insurance costs
Total nonoperating revenues (expenses)
Income (loss) before contributions and
transfers
Capital grants and contributions
Transfers in
Transfers out
Change in net position
Net position - beginning
Net position - ending
Stormwater
Fort Myers
Country Club
Eastwood
Golf Course
$ 3,526,823
401
3,527,224
$ 3,423,575
665,603
4,089,178
$ 1,096,086
14,875
944
1,111,905
$ 1,830,509
27,581
6,485
1,864,575
2,156,167
42,076
42,657
167,856
11,986
1,434
367,137
4,211
30,300
12,512
2,836,336
690,888
1,135,030
968,821
449,663
117,940
127
32,085
164,300
701
60,500
508,965
3,438,132
651,046
376,633
90,359
345,367
173,852
69,864
28,945
90,133
70
60,500
56,830
1,292,553
(180,648)
620,551
144,583
504,937
101,789
178,912
37,457
121,108
76
60,500
174,593
1,944,506
(79,931)
7,709
7,709
4,960
4,960
(7,940)
(14,429)
(22,369)
944
944
698,597
656,006
(203,017)
(78,987)
-
105,620
594,242
(114,500)
463,539
5,338,200
-
(185,478)
698,597
1,241,368
5,598,722
(264,465)
5,084,756
$ 5,783,353
13,548,057
$ 14,789,425
47,066
$ 5,645,788
4,219,791
$ 3,955,326
The notes to financial statements are an integral part of this statement.
138
Yacht Basin
$ 2,283,530
31,365
53,494
2,368,389
Harborside
Event Center
$
769,038
769,038
Downtown
Parking
Garages
$
880,139
64,045
1,986
946,170
Skatium
$
999,168
952
1,000,120
Dept of Cultural
and Historic
Affairs
$
578,698
827
579,525
Total Nonmajor
Enterprise
Funds
$
14,618,528
906,904
730,692
16,256,124
475,639
1,396,317
11,500
125,465
152,955
150,627
39,878
255
60,500
212,633
2,625,769
(257,380)
856,347
40,501
49,953
195,530
186,348
57,443
91,823
121,100
405,071
2,004,116
(1,235,078)
239
17,730
597,838
28,029
4,095
84,145
307,236
1,039,312
(93,142)
466,364
159,970
110,941
71,045
225,256
44,902
67,034
60,500
17,035
1,223,047
(222,927)
683,903
189,791
84,983
170,463
125,943
76,018
111,954
1,117
75,600
65,142
1,584,914
(1,005,389)
6,770,873
3,050,148
2,197,839
1,151,969
955,486
513,056
1,053,367
6,430
529,500
1,760,017
17,988,685
(1,732,561)
1,055
(190,575)
(189,520)
639
639
463
463
(16)
(16)
933
2,415
3,348
933
10,229
(205,004)
(193,842)
(446,900)
(1,234,439)
(92,679)
(222,943)
(1,002,041)
(1,926,403)
442,100
(33,572)
800,900
(40,539)
(102,041)
235,800
(27,206)
965,906
-
569,159
8,377,148
(503,336)
(38,372)
(474,078)
(194,720)
(14,349)
(36,135)
6,516,568
1,522,540
$ 1,484,168
3,705,287
$ 3,231,209
4,255,054
$ 4,060,334
$
(69,147)
(83,496)
139
$
1,583,774
1,547,639
$
33,897,178
40,413,746
CITY OF FORT MYERS, FLORIDA
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2014
Building
Permits and
Inspections
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Other operating receipts
Payments to suppliers and service providers
Payments to employees for services
Other operating payments
Net cash provided by (used for) operating activities
Stormwater
$ 3,543,106
401
(624,481)
(2,092,558)
826,468
$ 3,673,058
665,603
(1,211,353)
(1,103,904)
(117,100)
1,906,304
-
$ 1,860,189
6,485
(1,150,411)
(601,313)
114,950
4,995,266
(4,515,524)
-
10,948,213
(5,610,013)
-
(185,478)
-
479,742
5,338,200
(185,478)
105,620
(1,071,006)
-
(2,098)
463,539
(3,085,247)
(52,800)
(14,616)
-
(965,386)
(2,691,222)
-
(274,264)
18,324
(255,940)
498,356
3,956,503
$ 4,454,859
(366,857)
14,384
(352,473)
1,068,187
1,919,003
$ 2,987,190
(607,719)
321
(607,398)
1,467,624
57,648
$ 1,525,272
18,024
991
19,015
(51,513)
169,062
117,549
$
$
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from bond issuance
Capital grants and private contributions
Acquisition and construction of capital assets
(72,172)
Principal paid on notes and bonds
Interest paid on notes and bonds
Net cash (used for) capital and related financing
(72,172)
activities
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Depreciation
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in bad debt
Decrease in inventories
(Increase) in prepaid items
(Decrease) increase in customer deposits payable
(Decrease) increase in accounts payable - supplier
(Decrease) increase in accounts payable - other
(Decrease) increase in compensated absences
Increase in other postemployement benefits
Net cash provided (used) by operating activities
690,888
12,512
$
651,046
$
Eastwood
Golf Course
647,422
944
(834,602)
(375,565)
(10,155)
(571,956)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in
Transfers out
Operating grants and private contributions
Net cash provided by (used for) noncapital financing
activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Proceeds from sale of investments
Interest on investments
Net cash provided by (used for) investing activities
Net increase (decrease) in cash and cash equivalents
Balances - beginning of year
Balances - end of the year
Fort Myers
Country Club
$
(180,648)
508,965
56,830
5,720
43,171
10,569
17,363
46,245
922,254
(672,772)
465,685
9,624
21,502
(463,539)
(601)
17,075
(2,141)
(6,100)
7,168
826,468
$ 1,906,304
Schedule of non-cash investing, capital, and financing activities:
Interest receivable / unrealized gain (loss)
$
(10,615)
The notes to financial statements are an integral part of this statement.
140
$
(9,424)
$
(571,956)
$
(8,261)
$
$
(79,931)
174,593
(664)
(285)
2,000
8,890
10,347
$
$
114,950
(47)
Yacht Basin
$ 2,604,132
53,494
(1,944,356)
(465,206)
(333)
247,731
$
$
Harborside
Event Center
$
951,151
1,986
(757,022)
(239)
(4,618)
191,258
$
987,041
952
(731,475)
(459,940)
(2,481)
(205,903)
$
578,698
827
(992,413)
(663,109)
(82,467)
(1,158,464)
Total Nonmajor
Enterprise
Funds
$
15,642,915
730,692
(8,966,506)
(6,608,402)
(222,773)
575,926
800,900
(40,539)
-
(102,041)
-
235,800
(27,206)
-
965,906
933
18,520,899
(10,647,087)
933
408,528
760,361
(102,041)
208,594
966,839
7,874,745
(195,572)
(191,304)
-
-
(6,380)
-
-
(2,098)
569,159
(4,234,805)
(248,372)
(205,920)
(386,876)
-
-
(6,380)
-
(4,122,036)
(181)
2,773
2,592
271,975
288,205
560,180
145
1,109
1,254
(12,847)
285,509
272,662
(25,932)
1,255
(24,677)
64,540
247,011
311,551
873
6
879
(2,810)
16,591
13,781
50,577
2,349
52,926
(138,699)
341,494
202,795
(1,274,953)
69,619
41,512
(1,163,822)
3,164,813
7,281,026
10,445,839
(257,380)
$
$ (1,235,078)
$
$
405,071
281,108
(9,298)
7,924
2,214
97
812
9,621
$
$
Skatium
Dept of Cultural
and Historic
Affairs
574,814
(166,286)
-
212,633
$
798,118
(720,393)
(846,568)
(5,619)
(774,462)
Downtown
Parking
Garages
$
(774,462)
(1,718)
$
(470)
$
307,236
28,811
269
(1,323)
18,978
(969)
(8,619)
18,398
247,731
(93,142)
$
6,968
97
(30,578)
674
3
$
$
(222,927)
$
$
(1,005,389)
17,035
65,142
(12,127)
(1,815)
7,206
302
(4,333)
10,756
(720)
(79,518)
(159,114)
342
5,582
15,211
191,258
$
(205,903)
$
(792)
$
(22)
$
141
(1,158,464)
66
$
$
(1,732,561)
1,760,017
763,475
(672,503)
(11,833)
(1,265)
(67,100)
364,352
10,874
23,219
139,251
$
$
575,926
(31,283)
142
CITY OF FORT MYERS
Internal Service Funds
Internal service funds are used to account for services provided to other departments or agencies of the
government, or to other governments on a cost-reimbursement basis.
Central Garage – To account for repair operations and maintenance related to City-owned vehicles.
Information Technology Services – To account for the City’s information systems, hardware, software and
maintenance.
Public Works Warehouse Operations – To account for all inventory received into the warehouse along
with the issues out to user departments.
Risk Management – To account for the activities related to general liability, auto liability and physical
damage, police and firefighters’ professional liability and workers’ compensation provided to other
departments of the City.
143
CITY OF FORT MYERS, FLORIDA
Combining Statement of Net Position
Nonmajor Internal Service Funds
September 30, 2014
Central
Garage
ASSETS
Current assets:
Cash and cash equivalents
Investments
Restricted cash and cash equivalents
Accounts receivable, net
Interest receivable
Due from other governmental agencies
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Intangible assets, net
Buildings, net
Equipment, net
Total noncurrent assets
Total assets
$
LIABILITIES
Current liabilities:
Accounts and contracts payable
Accrued and other liabilities
Compensated absences
Claims and judgments
Capital leases payable
Total current liabilities
Noncurrent liabilities:
Compensated absences
Other postemployment benefits payable
Capital leases payable
Claims and judgments
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
$
374,972
151,097
1,171
260,116
787,356
Information
Technology
Services
Public Works
Warehouse
Operations
Risk
Management
$
$
$
535,052
215,603
1,758
121,018
873,431
50,493
20,346
399,964
470,803
6,316,840
2,878,209
3,550,258
1,271
17,478
622
28,440
12,793,118
Total Internal
Service Funds
$
7,277,357
3,265,255
3,550,258
1,271
20,407
622
660,080
149,458
14,924,708
4,716
764,679
769,395
1,556,751
16,904
203,595
220,499
1,093,930
470,803
12,793,118
16,904
4,716
968,274
989,894
15,914,602
110,597
7,501
8,681
126,779
12,640
110,678
6,562
116,247
246,127
17,252
17,252
118,420
1,864
2,968,500
3,088,784
258,909
120,043
15,243
2,968,500
116,247
3,478,942
41,972
163,341
205,313
332,092
64,527
236,047
78,273
378,847
624,974
17,252
1,623
32,603
2,154,345
2,188,571
5,277,355
108,122
431,991
78,273
2,154,345
2,772,731
6,251,673
769,395
455,264
1,224,659
25,979
442,977
468,956
453,551
453,551
7,515,763
7,515,763
795,374
8,867,555
9,662,929
$
The notes to financial statements are an integral part of this statement.
144
$
$
$
CITY OF FORT MYERS, FLORIDA
Combining Statement of Revenues, Expenditures, and Changes in Net Position
Internal Service Funds
For the Year Ended September 30, 2014
Central
Garage
OPERATING REVENUES
Charges for services
Miscellaneous
Total operating revenues
$
OPERATING EXPENSES
Personnel services
Materials and supplies
Contractual services
General and administrative
Utilities
Repairs and maintenance
Rentals
Travel
Insurance
Self insurance claims
Depreciation
Total operating expenses
Operating income
NONOPERATING REVENUES (EXPENSES)
Interest income
Loss on disposal of capital assets
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before contributions and
transfers
Transfers out
Change in net position
Net position - beginning
Net position - ending
$
5,316,600
19,443
5,336,043
Information
Technology
Services
Public Works
Warehouse
Operations
Risk
Management
$
$
$
4,694,100
55
4,694,155
602,900
602,900
Total Internal
Service Funds
5,092,538
914,524
6,007,062
$ 15,706,138
934,022
16,640,160
1,099,155
2,888,853
397,467
258,546
60,628
8,357
133,900
2,630
30,300
359,087
5,238,923
97,120
1,718,231
583,790
59,656
196,715
604,664
794,360
215,974
18,331
4,500
117,299
4,313,520
380,635
522,496
200
18,000
540,696
62,204
229,047
2,951
195,474
198,478
21,200
1,978
1,529,890
2,252,162
4,431,180
1,575,882
3,046,433
3,998,090
652,797
671,739
665,292
802,717
371,074
22,939
1,564,690
2,252,162
476,386
14,524,319
2,115,841
2,400
(13,708)
(11,308)
1,402
(292,737)
(291,335)
(183)
(183)
12,703
12,703
16,322
(13,708)
(292,737)
(290,123)
85,812
89,300
62,021
1,588,585
1,825,718
(293,200)
(207,388)
1,432,047
1,224,659
(403,846)
(314,546)
783,502
468,956
62,021
391,530
453,551
(500,000)
1,088,585
6,427,178
7,515,763
(1,197,046)
628,672
9,034,257
$ 9,662,929
$
The notes to financial statements are an integral part of this statement.
145
$
$
CITY OF FORT MYERS, FLORIDA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2014
Information
Technology
Services
Public Works
Warehouse
Operations
Risk
Management
$ 5,316,600
19,443
(4,040,442)
(1,075,317)
220,284
$ 4,694,100
55
(2,515,261)
(1,679,202)
499,692
$
$
(293,200)
(293,200)
(403,846)
(403,846)
(301,972)
1,500
Central
Garage
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Other operating receipts
Payments to suppliers and service providers
Payments to employees for services
Net cash provided by operating activities
5,092,794
914,524
(2,534,698)
(2,295,907)
1,176,713
$ 15,706,394
934,022
(9,604,634)
(5,050,426)
1,985,356
(17,644)
(17,644)
(500,000)
(500,000)
(1,197,046)
(17,644)
(1,214,690)
(147,834)
(98,217)
-
-
-
(449,806)
(98,217)
1,500
(300,472)
(246,051)
-
-
(546,523)
99,453
2,199
101,652
34,768
1,965
36,733
(20,628)
98
(20,530)
(287,209)
27,524
(259,685)
(307,837)
134,221
31,786
(141,830)
$
(271,736)
646,708
374,972
$
(113,472)
648,524
535,052
$
50,493
50,493
$
417,028
9,450,070
9,867,098
82,313
10,745,302
$ 10,827,615
$
97,120
$
380,635
$
62,204
$
1,575,882
$ 2,115,841
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers out
Payments on interfund loans
Net cash (used for) noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets
Payment on capital lease
Proceeds from sale of capital assets
Net cash (used for) capital and related financing
activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Proceeds from sale of investments
Interest on investments
Net cash provided by (used for) investing activities
Net increase (decrease) in cash and cash
equivalents
Balances - beginning of year
Balances - end of the year
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Changes in assets and liabilities:
Decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid items
(Decrease) in accounts payable - supplier
(Decrease) increase in compensated absences
Increase in other postemployment benefits
Net cash provided (used) by operating activities
Noncash investing, capital, and financing activities:
Interest receivable / unrealized gain (loss)
$
602,900
(514,233)
88,667
Total Internal
Service
Funds
359,087
117,299
-
-
476,386
(68,654)
(191,107)
2,348
21,490
220,284
(15,360)
(21,911)
4,386
34,643
499,692
90,486
(64,023)
88,667
255
18,694
(421,331)
(1,591)
4,804
1,176,713
255
21,832
3,334
(698,372)
5,143
60,937
$ 1,985,356
$
201
The notes to financial statements are an integral part of this statement.
146
$
$
(563)
$
$
(281)
$
$
(14,821)
$
(15,464)
CITY OF FORT MYERS
Fiduciary Funds
Agency Funds
Agency funds are used to account for monies that are collected by the City and held in a custodial capacity
until remitted to the proper authority.
Carillon Woods Special Assessment Geographical Area Fund – To account for monies that are
collected by the City and remitted to the bondholder. The City has met all the conditions in the bond
resolution and no longer has any obligation for this debt.
Regional Park Impact Fees Fund – To account for the City’s collection of regional park fees. The fees are
remitted to the County.
Emergency Medical Services (EMS) Impact Fees Fund – To account for the City’s collection of impact
fees for EMS services. The fees are remitted to the County.
School Board Impact Fees Fund – To account for the City’s collection of impact fees for the School Board.
The fees are remitted to the County.
Unclaimed Funds Fund – To account for funds that the City has been holding, and if not claimed, will
eventually be remitted to the State of Florida.
Employees’ Special Events Fund – To account for money held for special events for the City’s employees.
The Special Events Committee raises its own funds and the City provides the tracking and accounting of
those funds.
147
CITY OF FORT MYERS, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended September 30, 2014
Balance
September 30,
2013
Regional Park Impact Fees
ASSETS
Cash and short-term investments
Total assets
LIABILITIES
Accounts and contracts payable
Due to other governmental agencies
Total liabilities
Emergency Medical Services Impact Fees
ASSETS
Cash and short-term investments
Interest receivable
Total assets
LIABILITIES
Accounts and contracts payable
Due to other governmental agencies
Total liabilities
School Board Impact Fees
ASSETS
Cash and short-term investments
Due from other governmental agencies
Total assets
LIABILITIES
Accounts and contracts payable
Due to other funds
Due to other governmental agencies
Total liabilities
Unclaimed Funds
ASSETS
Cash and short-term investments
Total assets
LIABILITIES
Accounts and contracts payable
Accrued and other liabilities
Total liabilities
Employees' Special Events
ASSETS
Cash and short-term investments
Interest receivable
Total assets
LIABILITIES
Accounts and contracts payable
Accrued and other liabilities
Total liabilities
Total - All Agency Funds
ASSETS
Cash and short-term investments
Due from other governmental agencies
Interest receivable
Total assets
LIABILITIES
Accounts and contracts payable
Accrued and other liabilities
Due to other governmental agencies
Due to other funds
Total liabilities
Additions
Deductions
Balance
September 30,
2014
$
$
18,930
18,930
$
$
149,596
149,596
$
$
(150,537)
(150,537)
$
$
17,989
17,989
$
18,930
18,930
$
148,518
138,902
287,420
$
(139,819)
(148,542)
(288,361)
$
8,699
9,290
17,989
7,015
5
7,020
$
65,606
1
65,607
$
(66,192)
(66,192)
$
7,020
7,020
$
65,422
61,713
127,135
$
(62,291)
(65,429)
(127,720)
$
2,364
2,364
$
327,368
327,368
$
(286,791)
(2,364)
(289,155)
$
$
$
(263,384)
(2,364)
(287,023)
(552,771)
$
$
275,695
315,289
590,984
$
$
2,364
2,364
$
12,311
28,266
40,577
$
$
7,938
7,938
$
$
22,837
22,837
$
$
(30,775)
(30,775)
$
$
-
$
7,938
7,938
$
28,539
20,601
49,140
$
(28,539)
(28,539)
(57,078)
$
-
31,223
43
31,266
$
50,020
11
50,031
$
(60,216)
(60,216)
$
3,135
28,131
31,266
$
43,703
35,087
78,790
$
(45,476)
(43,499)
(88,975)
$
(594,511)
(2,364)
(596,875)
$
(539,509)
(72,038)
(500,994)
(2,364)
(1,114,905)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
65,106
2,364
48
67,518
$
3,135
36,069
25,950
2,364
67,518
$
$
$
The notes to financial statements are an integral part of this statement.
148
$
$
$
$
$
$
$
615,427
12
615,439
$
561,877
55,688
515,904
1,133,469
$
$
$
$
$
$
$
$
$
$
$
$
6,429
6
6,435
3,131
3,304
6,435
40,577
40,577
21,027
54
21,081
1,362
19,719
21,081
86,022
60
86,082
25,503
19,719
40,860
86,082
CITY OF FORT MYERS
Capital Assets Used in the Operation of Governmental Funds
149
CITY OF FORT MYERS, FLORIDA
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedule by Source
(1)
For the Years Ended September 30, 2014 and 2013
2014
2013
Governmental Funds Capital Assets:
Land
Land (Infill Development)
Buildings
Improvements other than buildings
Equipment
Infrastructure
Antiques and Exhibits
Intangibles
Construction in progress
Total government funds capital assets
$
$
24,953,385
431,956
22,447,994
46,218,055
14,362,921
265,662,544
251,871
3,560,054
3,937,039
381,825,819
$
$
24,920,449
463,980
22,143,319
45,809,872
13,421,186
264,303,759
251,871
3,560,054
3,891,004
378,765,494
Investment in Governmental Funds Capital Assets by Source:
General Fund
Capital Projects Funds
Donations
Total investment in governmental fund capital assets
$
$
(1)
2014
188,587,232
186,806,867
6,431,720
381,825,819
$
$
2013
188,857,291
183,719,084
6,189,119
378,765,494
This schedule presents only the capital asset balances, at cost, related to governmental funds. Accordingly, the capital assets
reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are
included as governmental activities in the statement of net position.
150
CITY OF FORT MYERS, FLORIDA
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
(1)
September 30, 2014
Function and Activity
General Government
Council
Financial and administrative
Comprehensive planning
Other general government
Total General Government
Land
$
Public Safety
Law Enforcement
Fire
Protective Inspections
Total Public Safety
Improvements
Other than
Buildings
Buildings
58,296
39,607
348,544
431,977
878,424
$
7,000
308,401
158,734
1,723,464
2,197,599
$
Equipment
191,374
6,911,011
7,102,385
$
23,512
99,654
1,737,095
1,860,261
4,017,108
9,614
4,026,722
483,059
2,025,575
2,508,634
1,001,521
195,190
289,107
1,485,818
3,888,982
6,173,165
105,307
10,167,454
14,350
110,175
124,525
759,124
759,124
2,789,264
5,877,364
8,666,628
17,834
523,602
541,436
Transportation
Road and street facilities
Parking facilities
Other transportation
Total Transportation
5,002,800
196,170
5,198,970
710,061
575,885
1,285,946
134,629
25,120
878,864
1,038,613
484,187
91,667
575,854
Economic Environment
Industry development
Other economic environment
Total Economic Environment
475,000
1,336,580
1,811,580
520,230
185,000
705,230
4,879,877
427,843
5,307,720
96,648
96,648
Culture and Recreation
Parks and recreations
Special recreation facilities
Other culture and recreation
Total Culture and Recreation
3,108,328
10,236,792
13,345,120
4,487,317
10,493,606
10,538
14,991,461
10,834,465
10,953,721
828,705
22,616,891
901,269
10,605
209,394
1,121,268
-
-
-
-
Physical Environment
Conservation and resource management
Other physical environment
Total Physical Environment
Construction in progress
Total government funds capital assets
$
25,385,341
$
22,447,994
(1)
$
46,218,055
$
14,362,921
This schedule presents only the capital asset balances, at cost, related to governmental funds. Accordingly, the capital assets reported in internal
service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in
the statement of net position.
151
CITY OF FORT MYERS, FLORIDA
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity (continued)
(1)
September 30, 2014
Function and Activity
General Government
Council
Financial and administrative
Comprehensive planning
Other general government
Total General Government
Antiques &
Exhibits
Infrastructure
$
-
$
-
Construction
in Progress
Intangibles
$
3,194,023
3,194,023
$
-
Total
$
88,808
447,662
698,652
13,997,570
15,232,692
Public Safety
Law Enforcement
Fire
Protective Inspections
Total Public Safety
-
-
-
-
5,373,562
12,411,038
404,028
18,188,628
Physical Environment
Conservation and resource management
Other physical environment
Total Physical Environment
-
-
-
-
2,821,448
7,270,265
10,091,713
259,336,438
5,408,977
264,745,415
-
366,031
366,031
-
266,034,146
116,787
7,059,896
273,210,829
Economic Environment
Industry development
Other economic environment
Total Economic Environment
-
-
-
-
5,971,755
1,949,423
7,921,178
Culture and Recreation
Parks and recreations
Special recreation facilities
Other culture and recreation
Total Culture and Recreation
917,129
917,129
251,871
251,871
-
-
20,248,508
31,946,595
1,048,637
53,243,740
-
-
-
3,937,039
3,937,039
Transportation
Road and street facilities
Parking facilities
Other transportation
Total Transportation
Construction in progress
Total government funds capital assets
$
265,662,544
$
251,871
(1)
$
3,560,054
$
3,937,039
$
381,825,819
This schedule presents only the capital asset balances, at cost, related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded
from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position.
152
CITY OF FORT MYERS, FLORIDA
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
(1)
For the Year Ended September 30, 2014
Balance
September 30,
2013
Function and Activity
General Government
Council
Financial and administrative
Comprehensive planning
Other general government
Total General Government
$
88,808
483,272
698,652
13,606,034
14,876,766
Public Safety
Law Enforcement
Fire
Protective Inspections
Total Public Safety
5,130,682
11,870,367
404,028
17,405,077
Physical Environment
Conservation and resource management
Other physical environment
Total Physical Environment
2,821,448
7,306,222
10,127,670
Transportation
Road and street facilities
Parking facilities
Other transportation
Total Transportation
Additions
$
64,385
423,560
487,945
Deletions
$
290,561
549,740
840,301
-
264,925,163
116,787
6,817,295
271,859,245
Balance
September 30,
2014
1,116,183
242,601
1,358,784
(99,995)
(32,024)
(132,019)
$
88,808
447,662
698,652
13,997,570
15,232,692
(47,681)
(9,069)
(56,750)
5,373,562
12,411,038
404,028
18,188,628
(35,957)
(35,957)
2,821,448
7,270,265
10,091,713
(7,200)
(7,200)
266,034,146
116,787
7,059,896
273,210,829
Economic Environment
Industry development
Other economic environment
Total Economic Environment
5,971,755
1,949,423
7,921,178
Culture and Recreation
Parks and recreations
Special recreation facilities
Other culture and recreation
Total Culture and Recreation
19,709,322
31,946,595
1,028,637
52,684,554
644,098
20,000
664,098
(104,912)
(104,912)
20,248,508
31,946,595
1,048,637
53,243,740
3,891,004
864,037
(818,002)
3,937,039
Construction in progress
Total government funds capital assets
$
378,765,494
-
$
4,215,165
(1)
-
$
(1,154,840)
5,971,755
1,949,423
7,921,178
$
381,825,819
This schedule presents only the capital asset balances, at cost, related to governmental funds. Accordingly, the capital assets reported in internal
service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in
the statement of net position.
153
154
Statistical Section
CITY OF FORT MYERS
Statistical Section
This part of the City of Fort Myers’s comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, notes disclosures and required
supplementary information says about the City’s overall financial health.
Contents
Page
Financial Trends
156
These schedules contain trend information to help the reader
understand how the City’s financial performance and well-being have
changed over time.
Revenue Capacity
164
These schedules contain information to help the reader assess the
City’s most significant revenue sources, the property tax and water and
wastewater sales.
Debt Capacity
168
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.
Note: The Constitution of the State of Florida (FS200.181) and the City
of Fort Myers set no legal debt limit.
Demographic and Economic Information
174
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City’s financial
activities take place.
Operating Information
175
These schedules contain service 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.
155
CITY OF FORT MYERS, FLORIDA
Schedule 1 - Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2005
Governmental activities
Net investment in capital assets
Restricted
Capital projects
Culture and recreation
Debt service
Economic environment
General government
Impact fee projects
Public safety:
Expendable
Nonexpendable
Renewal and replacement
Transportation
Community development projects
Other purposes
Unrestricted
Total governmental activities net position
Business-type activities
Net investment in capital assets
Restricted
Capital projects
Culture and recreation
Debt service
Impact fee projects
Physical environment
Public safety
Renewal and replacement
Transportation
Operations and maintenance
Unrestricted
Total business-type activities net position
Primary government
Net investment in capital assets
Restricted
Capital projects
Culture and recreation
Debt service
Economic environment
General government
Impact fee projects
Physical environment
Public safety:
Expendable
Nonexpendable
Renewal and replacement
Transportation
Community development projects
Operations and maintenance
Other purposes
Unrestricted
Total primary government net position
$
(31,745,240)
2006
$
20,470,042
2007
(1)
$
34,487,088
22,460,276
5,563,914
-
25,862,555
4,555,317
-
22,751,244
260,789
6,119,514
5,860,914
1,314,159
34,824,240
$
1,291,775
2,671,262
9,116,853
9,358,840
$
1,347,833
3,820,055
37,033,475
93,089,277
$
3,646,476
2,000
560,448
1,902,651
26,720,050
138,449,573
$
32,871,231
$
30,338,162
$
54,548,382
$
3,513,430
6,286,650
2,650,934
5,022,800
4,381,071
15,610,564
70,336,680
$
14,891,747
10,641,510
3,785,913
4,096,616
11,660,878
12,352,612
87,767,438
(1)
$
141,342
192,390
7,106,456
4,469,102
4,708,732
101,230
3,616,097
28,601
31,211,703
106,124,035
$
1,125,991
$
50,808,204
(1)
$
89,035,470
$
(1)
(1)
(1)
2008
$
43,367,922
42,577,813
276,244
6,662,297
7,509,337
1,276,433
22,540,220
(2)
(2)
$
2,193,757
2,000
640,338
1,097,513
27,802,898
155,946,772
(2)
$
53,546,225
$
12,071,684
5,335,395
5,788,394
20,814
5,425,078
17,430
28,307,366
110,512,386
$
96,914,147
(2)
25,973,706
11,850,564
2,650,934
-
40,754,302
15,196,827
3,785,913
-
22,892,586
453,179
13,225,970
5,358,507
1,314,159
39,293,342
4,708,732
54,649,497
276,244
11,997,692
7,509,337
1,276,433
28,328,614
20,814
5,022,800
1,291,775
4,381,071
2,671,262
24,727,417
79,695,520
4,096,616
1,347,833
11,660,878
3,820,055
49,386,087
180,856,715
3,747,706
2,000
4,176,545
1,931,252
58,434,160
244,573,608
2,193,757
2,000
6,065,416
1,114,943
56,110,264
266,459,158
$
(1)
$
(2)
(2)
$
Note: The City of Fort Myers implemented the government-wide information required by GASB Statement 44 retroactively to fiscal year
2005.
(1)
(2)
(3)
(4)
Restated per Note 8 in fiscal year 2007.
Restated per Note 8 in fiscal year 2008.
Restated per Note 6 in fiscal year 2010.
Restated per Note 25 in fiscal year 2013.
156
(3)
(3)
CITY OF FORT MYERS, FLORIDA
Schedule 1 - Net Position by Component (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2009
$
2010
40,276,557
$
46,344,509
2011
$
51,407,651
2012
$
2013
59,741,815
(4)
$
58,088,422
2014
(4)
$
49,609,728
46,286,423
280,019
6,991,217
9,267,781
1,255,036
21,822,142
51,823,762
255,071
7,135,436
8,305,107
1,271,958
19,039,083
41,275,888
63,445
7,289,473
4,047,022
2,956,361
43,801,907
64,156
7,262,753
4,185,328
2,367,429
40,910,394
168,328
7,265,355
5,292,390
14,019,479
34,732,077
163,808
5,620,962
3,517,564
15,393,894
$
2,121,578
2,000
688,227
1,347,675
29,110,288
159,448,943
$
1,862,166
2,000
619,991
2,000,218
19,333,583
157,992,884
$
1,004,294
2,000
391,971
1,840,923
43,311,168
153,590,196
$
838,983
2,000
2,229
1,214,186
31,608,418
151,089,204
$
73,491,549
$
80,328,915
$
77,483,278
$
46,140,478
$
6,075,450
9,552,634
2,839,477
201,877
6,074,195
12,005
23,926,440
122,173,627
$
1,198,244
28
11,400,208
972,235
142,889
6,121,090
7,347
21,024,664
121,195,620
$
2,663,957
7,299
10,527,927
862,413
6,108,968
8,827
27,827,659
125,490,328
$
13,767,152
7,853,276
797,517
6,661,111
5,899
38,251,249
113,476,682
$
113,768,106
$
126,673,424
$
128,890,929
$
105,882,293
$
(3)
(3)
(4)
$
839,717
2,000
3,661
2,036,261
3,352,665
131,978,672
(4)
$
54,346,522
(4)
$
12,784,220
7,933,788
798,720
7,766,842
15,305
36,333,372
119,978,769
(4)
$
112,434,944
(4)
$
2,000
671,268
1,641,906
(699,855)
110,653,352
(4)
$
66,890,713
(4)
$
12,973,297
9,940,611
3,144,674
9,337,620
26,500
41,650,115
143,963,530
(4)
$
116,500,441
52,361,873
280,019
16,543,851
9,267,781
1,255,036
24,661,619
201,877
53,022,006
255,099
18,535,644
8,305,107
1,271,958
20,011,318
142,889
43,939,845
70,744
17,817,400
4,047,022
3,818,774
-
57,569,059
64,156
15,116,029
4,185,328
3,164,946
-
53,694,614
168,328
15,199,143
5,292,390
14,818,199
-
47,705,374
163,808
15,561,573
3,517,564
18,538,568
-
2,121,578
2,000
6,762,422
1,359,680
53,036,728
281,622,570
1,862,166
2,000
6,741,081
2,007,565
40,358,247
279,188,504
1,004,294
2,000
6,500,939
1,849,750
71,138,827
279,080,524
838,983
2,000
6,663,340
1,220,085
69,859,667
264,565,886
839,717
2,000
7,770,503
2,051,566
39,686,037
251,957,441
2,000
671,268
9,337,620
1,668,406
40,950,260
254,616,882
$
$
$
157
(4)
$
(4)
$
CITY OF FORT MYERS, FLORIDA
Schedule 2 - Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2005
Expenses
Governmental Activities:
General government
Police
Fire
Protective inspections
Other
Physical environment
Transportation
Economic environment
Culture and recreation
Interest on long-term debt
Total Governmental Activities
Business-type Activities:
Water-Wastewater
Solid Waste
Building Permits and Inspections
Stormwater
Golf Courses
Yacht Basin
Harborside Event Center
Downtown Parking Garages
Skatium
Historical Homes
Department of Cultural and Historic Affairs
Total Business-type Activities
$
Total Expenses
Program Revenues
Governmental Activities:
Charges for services
General government
Police
Fire
Protective inspections (3)
Physical environment
Transportation
Economic environment
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total Governmental Activities
Total Program Revenues
Net (Expense)/Revenue
Governmental Activities
Business-type Activities
Total Net Expense
7,422,156
20,437,591
12,028,065
2,057,353
5,026,688
4,321,224
12,819,838
2,844,748
5,242,840
72,200,503
$
27,369,279
7,543,459
3,079,786
2,988,419
2,073,777
2,004,218
5,212,204
50,271,142
(2)
Business-type Activities:
Charges for services
Water-Wastewater
Solid Waste
Building Permits and Inspections
Stormwater
Golf Courses
Yacht Basin
Harborside Event Center
Downtown Parking Garages
Skatium
Historical Homes
Department of Cultural and Historic Affairs
Operating grants and contributions
Capital grants and contributions
Total Business-type Activities
2006
11,150,038
22,782,979
14,307,615
2,331,605
69,939
7,608,612
6,844,796
11,070,787
3,367,159
4,890,033
84,423,563
2007
$
32,752,832
10,134,684
3,785,956
2,893,019
2,459,101
2,065,603
6,606,002
60,697,197
18,412,703 $
27,757,527
17,417,874
2,641,533
6,866,875
12,558,630
4,413,260
2,289,921
5,880,340
98,238,663
36,136,629
11,221,911
4,543,886
3,038,786
2,271,326
2,173,280
995,977
869,171
1,923,733
63,174,699
2008
16,492,461
31,773,124
20,194,245
2,778,609
16,738
7,621,568
12,777,745
4,984,291
4,195,004
5,455,071
106,288,856
39,689,601
12,242,537
4,895,643
3,690,953
2,236,830
2,184,100
979,551
1,140,585
1,962,904
69,022,704
$
122,471,645
$
145,120,760
$
161,413,362 $
175,311,560
$
421,660
1,477,845
1,635,872
3,210,468
2,115,151
897,439
11,904
386,808
13,515,314
11,461,804
35,134,265
$
860,044
1,624,696
2,238,483
3,766,564
5,018,116
881,853
96,948
1,161,852
11,591,841
10,132,435
37,372,832
$
1,219,844 $
1,846,531
2,040,100
3,408,549
4,034,897
314,907
190,179
1,108,748
3,211,837
33,886,717
51,262,309
1,201,287
2,506,830
1,369,961
1,142,996
3,403,086
393,104
195,428
925,664
2,909,707
18,611,350
32,659,413
42,791,290
15,032,009
5,189,047
2,988,967
1,943,558
1,211,109
896,431
649,017
583,770
34,627
13,743,922
85,063,747
43,495,343
15,829,218
3,181,581
2,861,898
1,882,893
1,009,546
926,002
819,592
530,150
20,318
8,159,203
78,715,744
42,579,919
10,957,668
5,018,610
3,157,210
2,220,849
1,037,772
4,101,195
96,689
5,852,210
75,022,122
(2)
44,690,090
13,982,379
7,133,301
3,154,236
2,291,421
1,255,948
3,889,273
73,706
1,777,206
78,247,560
$
110,156,387
$
115,620,392
$
136,326,056 $
111,375,157
$
(37,066,238)
24,750,980
(12,315,258)
$
(47,050,731)
17,550,363
(29,500,368)
$
(46,976,354) $
21,889,048
(25,087,306) $
(73,629,443)
9,693,040
(63,936,403)
$
158
$
$
CITY OF FORT MYERS, FLORIDA
Schedule 2 - Changes in Net Position (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2009
$
17,629,323
29,213,985
17,983,913
2,402,582
3,248,941
13,144,626
7,131,285
4,158,147
5,314,097
100,226,899
2010
$
36,707,074
11,069,317
3,913,932
1,640,896
3,321,542
2,100,472
2,156,990
1,028,549
1,252,056
1,703,697
64,894,525
16,675,130
31,887,208
16,722,815
1,555,000
2,357,311
11,558,730
7,830,674
3,781,245
3,658,929
96,027,042
2011
$
45,914,665
10,541,992
2,688,251
2,053,906
3,273,457
2,399,954
2,215,480
1,026,229
1,174,152
1,757,457
73,045,543
13,184,596
32,408,078
18,614,040
1,470,340
2,260,742
14,306,220
5,269,595
3,453,021
4,060,650
95,027,282
2012
$
44,539,869
9,413,560
2,308,477
2,928,303
3,086,750
2,447,680
2,113,002
1,003,244
1,185,626
1,772,490
70,799,001
14,026,296
33,417,494
20,056,573
1,627,330
4,879,919
10,505,928
4,515,627
3,628,966
5,328,432
97,986,565
(4)
65,678,945
8,754,026
2,470,171
2,768,189
3,258,666
2,378,769
2,029,197
984,598
1,219,049
1,629,333
91,170,943
(4)
(4)
$
165,121,424
$
169,072,585
$
165,826,283
$
189,157,508
$
597,963
2,077,930
661,709
898,571
460,202
650
95,203
528,214
3,233,726
7,754,113
16,308,281
$
520,803
1,875,559
556,050
1,101,054
405,602
115,648
446,435
4,881,791
7,261,760
17,164,702
$
559,612
1,392,569
708,595
942,495
644,802
103,525
421,326
5,060,601
9,183,542
19,017,067
$
1,168,929
1,212,211
698,198
1,163,024
3,651,110
188,600
280,363
868,451
5,440,465
9,290,417
23,961,768
45,692,290
13,973,878
1,581,669
1,703,563
3,132,618
1,771,060
822,205
794,992
868,286
492,281
21,339
10,022,669
80,876,850
48,300,544
14,123,999
1,707,358
2,848,845
3,006,715
1,949,748
796,651
743,828
967,376
698,065
17,725
1,021,427
76,182,281
51,136,818
14,068,617
2,087,911
2,894,957
3,078,401
2,032,894
864,245
742,936
1,023,102
562,710
95,147
1,227,391
79,815,129
97,185,131
$
93,346,983
$
98,832,196
$
106,037,383
$
(83,918,618)
15,982,325
(67,936,293)
$
(78,862,340)
3,136,738
(75,725,602)
$
(76,010,215)
9,016,128
(66,994,087)
$
(74,024,797)
(9,095,328)
(83,120,125)
$
$
$
(4)
$
159
12,167,626
35,492,533
21,255,783
1,428,519
5,094,677
19,528,061
4,183,689
3,501,196
4,981,829
107,633,913
2014
$
45,188,740
8,668,898
2,339,039
2,676,947
3,192,083
2,625,787
2,026,123
1,067,213
1,218,220
1,684,157
70,687,207
(4)
(4)
(4)
(4)
46,061,313
8,878,238
2,836,337
2,802,742
3,251,488
2,816,344
2,004,116
1,039,313
1,223,048
1,584,912
72,497,851
178,321,120
$
183,310,365
$
1,200,252
1,201,938
656,235
232,286
3,164,986
193,000
501,107
877,758
5,096,197
1,279,111
14,402,870
$
1,216,087
1,050,970
864,235
1,345,184
3,607,380
173,700
421,141
940,122
4,082,848
2,767,330
16,468,997
52,961,034
14,109,921
2,824,537
2,894,352
3,034,718
2,243,510
875,557
865,519
994,840
524,235
886
3,383,428
84,712,537
(4)
60,923,685
14,415,660
3,527,224
3,453,789
2,970,250
2,368,389
769,038
946,170
1,000,120
578,698
933
8,647,869
99,601,825
$
99,115,407
$
116,070,822
$
(93,231,043)
14,025,330
(79,205,713)
$
(94,343,517)
27,103,974
(67,239,543)
(4)
(4)
12,200,476
36,183,148
20,189,676
1,448,884
5,754,949
19,957,055
6,199,726
3,759,704
5,118,896
110,812,514
$
51,977,981
13,969,091
2,542,854
2,899,935
3,120,235
1,986,434
791,462
803,829
1,031,456
587,833
884
2,363,621
82,075,615
$
$
2013
$
$
CITY OF FORT MYERS, FLORIDA
Schedule 2 - Changes in Net Position (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2005
General Revenues
Governmental activities:
Taxes
Property taxes
Public service taxes
Fuel taxes
(3)
Local business tax
Franchise taxes
Intergovernmental, unrestricted
Interest and investment income
Miscellaneous
Special Item - loss on disposal of capital assets
Transfers
Total general revenues, transfers, and special item
$
Business-type Activities:
Intergovernmental, unrestricted
Interest and investment income
Miscellaneous
Special Item - loss on disposal of capital assets
Extraordinary item - loss on disposal of capital assets
Transfers
Total Business-type Activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Total Change in Net Position
2006
23,278,536
9,072,046
4,421,926
4,091,067
7,230,199
1,405,519
3,648,960
5,306,025
58,454,278
$
600,800
317,936
(5,306,025)
(4,387,289)
30,911,466
9,695,679
4,673,335
5,142,126
12,675,556
3,525,314
2,897,638
3,490,982
73,012,096
2007
$
1,381,079
488,161
(3,490,982)
(1,621,742)
2008
42,003,527 $
10,079,097
4,628,004
5,639,004
9,489,130
7,290,750
2,050,485
10,654,246
91,834,243
3,420
1,722,726
154,688
(516,073)
(10,654,246)
(9,289,485)
##
45,442,009
10,409,177
4,310,420
1,600,055
5,848,743
8,765,202
6,315,299
1,226,523
1,044,902
6,164,312
91,126,642
1,566
1,266,242
84,861
(493,046)
(6,164,312)
(5,304,689)
$
54,066,989
$
71,390,354
$
82,544,758 $
85,821,953
$
21,388,040
20,363,691
41,751,731
$
25,961,365
15,928,621
41,889,986
$
44,857,889 $
12,599,563
57,457,452 $
17,497,199
4,388,351
21,885,550
$
$
$
Note: The City of Fort Myers implemented the government-wide information required by GASB Statement 44 retroactively to fiscal year 2005.
(1)
(2)
Note 22 in the CAFR for fiscal year ended September 30, 2007, provides an explanation on the loss on disposal of capital assets in 2007.
Department of Cultural and Historic Affairs was created in fiscal year 2010 by transfers of Historical Homes.
CITY OF FORT MYERS, FLORIDA
Schedule 3 - Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2005
General Fund
Nonspendable
Assigned
Unassigned
Total General Fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
Total Fund Balance, All Governmental Funds
$
$
$
2007
2006
1,238,470
7,704,966
10,110,085
19,053,521
$
$
$
$
190,575
41,848,826
1,878,598
43,917,999
$
62,971,520
1,317,460
8,485,383
18,782,480
28,585,323
$
$
2008
1,314,159 $
8,928,426
16,790,623
27,033,208 $
1,276,433
11,136,740
13,386,387
25,799,560
384,500
106,438,932
20,755
10,931,232
117,775,419
143,574,979
$
$
190,575
47,662,688
374,998
48,228,261
$
460,480 $
115,618,756
4,609
5,103,243
121,187,088 $
$
76,813,584
$
148,220,296 $
Notes: The City of Fort Myers implemented the government-wide information required by GASB Statement 44 retroactively to fiscal year 2005.
The City of Fort Myers implemented GASB Statement 54 in fiscal year 2011 and applied the statement retroactively to Schedule 3.
160
CITY OF FORT MYERS, FLORIDA
Schedule 2 - Changes in Net Position (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2009
$
50,344,893
10,457,952
4,213,436
1,553,880
6,003,066
8,321,085
3,942,860
1,077,076
(2,329,858)
3,836,399
87,420,789
2010
$
1,469,320
55,927
(3,836,399)
(2,311,152)
40,719,474
9,241,071
4,096,370
1,509,930
5,276,818
6,957,210
1,828,164
864,496
6,912,748
77,406,281
2011
$
820,299
1,977,704
(6,912,748)
(4,114,745)
35,438,308
10,141,215
3,985,344
1,421,050
5,301,624
7,079,177
556,731
1,977,477
5,706,601
71,607,527
2012
$
479,956
505,225
(5,706,601)
(4,721,420)
34,770,474
10,610,314
4,173,345
1,611,733
5,121,334
7,040,744
283,168
1,634,139
6,278,554
71,523,805
85,109,637
$
73,291,536
$
66,886,107
$
68,605,487
$
3,502,171
13,671,173
17,173,344
$
(1,456,059)
(978,007)
(2,434,066)
$
(4,402,688)
4,294,708
(107,980)
$
(2,500,992)
(12,013,646)
(14,514,638)
$
$
$
191,203
3,169,033
(6,278,554)
(2,918,318)
$
$
2013
$
34,988,658
11,043,981
4,141,260
2,656,676
5,086,525
7,483,242
214,613
859,424
7,646,132
74,120,511
2014
$
61,974
60,915
(7,646,132)
(7,523,243)
(4)
66,895
30,220
(3,216,328)
(3,119,213)
$
66,597,268
$
69,898,984
$
(19,110,532)
6,502,087
(12,608,445)
$
(21,325,320)
23,984,761
2,659,441
(4)
(4)
36,692,230
11,390,495
4,372,936
1,566,244
5,646,716
8,358,062
227,329
1,547,857
3,216,328
73,018,197
$
$
(3)
In fiscal year 2011, Local Business Tax was moved from Charges for Services-Protective Inspections to conform to the change in the
State Uniform Chart of Accounts in fiscal year 2008.
(4) Restated per Note 25 in fiscal year 2013.
CITY OF FORT MYERS, FLORIDA
Schedule 3 - Fund Balances of Governmental Funds (continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
2009
$
$
$
1,255,036
13,127,595
12,010,174
26,392,805
2011
2010
$
$
$
$
514,102
98,018,804
32,209
16,840,047
115,405,162
$
141,797,967
1,271,958
12,740,333
12,148,678
26,160,969
$
$
$
$
514,102
92,355,223
40,255
18,442,576
(357,948)
110,994,208
$
137,155,177
$
$
1,245,428
11,382,758
11,285,161
23,913,347
278,955
76,378,558
46,564
19,582,124
(457,579)
95,828,622
119,741,969
2013
2012
$
$
$
$
$
663,230
10,244,081
11,401,537
22,308,848
421,457
71,797,817
52,945
19,598,082
(285,666)
91,584,635
113,893,483
161
$
$
$
630,175
10,068,201
8,146,193
18,844,569
2014
$
$
634,617
2,354,553
12,654,296
15,643,466
$
$
421,457
80,733,854
56,991
4,778
(145,663)
81,071,417
$
273,004
75,719,336
61,662
2,359
(41,631)
76,014,730
$
99,915,986
$
91,658,196
CITY OF FORT MYERS, FLORIDA
Schedule 4 - Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2005
Revenues
Taxes
Permits and fees
Intergovernmental revenue
Charges for services
Fines and forfeitures
Miscellaneous
Contributions-private source
Total Revenues
$
Expenditures
Current:
General government
Police
Fire
Protective inspections
Other
Physical environment
Transportation
Economic environment
Culture and recreation
Debt service:
Principal retirement
Interest and fiscal charges
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Refunding bonds issued
Premiums on bonds issued
Payments to bond escrow agent
Proceeds from capital lease
Loan issuance
Installment purchase proceeds
Total Other Financing Sources (Uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
$
40,863,573
5,493,994
24,021,809
2,818,568
1,366,138
19,061,604
93,625,686
2006
$
50,355,834
7,119,353
22,971,635
3,051,386
1,564,364
20,814,296
1,042,629
106,919,497
2007
$
63,744,859
5,800,522
12,128,101
2,463,448
1,336,678
42,903,188
1,772,843
130,149,639
2008
$
67,214,000
3,945,544
15,152,934
2,338,282
1,746,548
23,565,634
495,302
114,458,244
9,149,117
19,844,548
11,941,015
2,181,067
79,436
6,746,038
4,060,018
11,382,239
2,057,640
10,002,264
22,932,514
13,354,210
2,370,527
69,939
7,864,910
4,337,370
10,860,506
2,914,911
12,005,049
29,803,835
17,290,483
2,891,600
8,271,487
3,754,163
4,198,947
3,392,226
12,899,973
30,804,324
18,849,554
2,686,967
16,738
7,771,282
4,044,298
4,851,521
3,779,986
5,678,595
5,090,152
8,311,087
86,520,952
5,915,268
4,964,219
11,332,507
96,919,145
8,944,701
7,198,993
14,626,593
112,378,077
5,864,143
6,226,430
29,261,241
127,056,457
7,104,734
10,000,352
17,771,562
(12,598,213)
31,325,838
(27,091,513)
4,970,000
162,030
(6,184,141)
10,239,158
13,421,372
29,971,744
(26,480,760)
350,728
3,841,712
85,420,893
(83,997,941)
91,938,640
3,624,802
(44,084,776)
698,122
53,599,740
42,781,199
(35,970,875)
475,000
165,165
7,450,489
20,526,106
$
13.8%
13,842,064
12.7%
$
71,371,302
16.5%
$
(5,147,724)
12.4%
Note: The City of Fort Myers implemented the government-wide information required by GASB Statement 44 retroactively to fiscal year 2005.
162
CITY OF FORT MYERS, FLORIDA
Schedule 4 - Changes in Fund Balances of Governmental Funds (continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
2009
$
$
72,460,443
2,653,764
14,436,061
2,049,235
1,710,236
11,252,513
84,019
104,646,271
2010
$
56,023,267
7,769,030
15,200,316
1,904,872
1,627,787
8,967,946
109,246
91,602,464
2011
$
52,034,109
6,715,722
12,780,655
1,978,054
935,618
8,539,044
77,893
83,061,095
2012
$
2013
52,478,122
6,755,761
24,354,437
6,488,602
951,174
1,751,368
73,892
92,853,356
$
53,145,080
7,313,589
14,800,700
6,371,315
883,510
1,935,388
104,916
84,554,498
2014
$
55,503,467
8,663,049
12,672,281
6,323,264
655,683
1,961,842
60,419
85,840,005
12,403,450
31,121,908
18,354,021
2,736,868
6,487,206
4,016,411
6,548,851
3,984,351
11,127,904
31,927,083
16,175,874
1,805,083
5,384,552
3,556,950
7,402,593
3,646,629
9,955,159
31,982,530
18,220,477
1,609,798
5,107,151
3,700,760
5,337,223
2,922,878
10,762,378
33,177,103
19,397,852
1,614,959
5,381,518
3,854,550
4,252,182
2,743,359
9,517,063
35,095,897
20,414,983
1,473,063
5,157,049
12,753,774
3,940,848
2,553,649
9,926,424
35,933,246
20,157,916
1,455,396
5,530,652
12,049,594
4,270,410
2,931,606
8,008,654
6,413,745
14,973,154
115,048,619
7,725,115
6,305,523
12,251,087
107,308,393
6,762,529
5,753,630
16,031,705
107,383,840
7,077,669
5,436,958
16,558,859
110,257,387
7,473,199
5,100,001
6,180,523
109,660,049
7,783,154
5,073,238
4,361,479
109,473,115
(10,402,348)
(15,705,929)
(24,322,745)
(17,404,031)
(25,105,551)
(23,633,110)
37,706,723
(30,265,369)
1,183,982
8,625,336
35,596,761
(24,533,622)
11,063,139
25,864,588
(18,955,051)
6,909,537
31,451,250
(19,895,705)
11,555,545
29,111,268
(18,581,835)
598,621
11,128,054
37,207,922
(32,794,548)
39,910,000
1,778,586
(30,726,640)
15,375,320
(1,777,012)
14.4%
$
(4,642,790)
14.8%
$
(17,413,208)
13.7%
$
(5,848,486)
13.4%
163
$
(13,977,497)
12.2%
$
(8,257,790)
12.2%
CITY OF FORT MYERS, FLORIDA
Schedule 5 - Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
($ in thousands)
Real
Property
Tax
(1)
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$
3,830,193
5,298,629
7,457,263
8,718,202
8,552,631
6,418,351
5,052,642
4,808,666
5,033,514
5,316,312
Total
Assessed
Value
Personal
Property
$
615,440
679,982
751,407
800,698
824,237
802,995
765,227
731,437
653,918
640,310
$
Allowable
Exemptions(2)
4,445,633
5,978,611
8,208,670
9,518,900
9,376,868
7,221,346
5,817,869
5,540,103
5,687,432
5,956,622
$
1,326,374
1,877,768
2,272,274
2,474,874
2,530,069
1,837,252
1,477,179
1,463,061
1,621,546
1,756,364
Total Taxable
Assessed
Value
$
3,119,259
4,100,843
5,936,396
7,044,026
6,846,799
5,384,094
4,340,690
4,077,042
4,065,886
4,200,258
Assessed
Value as a
Percentage of
(4)
Actual Value
70.16%
68.59%
72.32%
74.00%
73.02%
74.56%
74.61%
73.59%
71.49%
70.51%
Estimated
Actual
Assessed
Value (3)
$
Total
Direct
Tax Rate
4,445,922
5,978,777
8,208,512
9,518,954
9,376,608
7,221,156
5,817,839
5,540,212
5,687,349
5,956,968
7.2100
7.2100
6.8000
6.2560
7.1634
7.4000
8.4000
8.4000
8.7760
8.7760
Source: Lee County Property Appraiser
(1)
(2)
(3)
(4)
Calendar year basis.
Allowable exemptions include the assessment differential value of capped parcels, which is more commonly known as the "Save Our Homes"
constitutional amendment.
Estimated actual value is calculated by dividing total taxable assessed value by assessed value as a percentage of actual value.
Florida Statutes require assessments at just valuation.
CITY OF FORT MYERS, FLORIDA
Schedule 6 - Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
(per $1,000 of assessed value)
Tax
(1)
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Fiscal
Year
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
City of Fort Myers Direct Rates
GO Debt
Total
Operating
Service
Direct
(2)
Millage
Millage
Tax Rate
7.2100
7.2100
6.8000
6.2560
7.1634
7.4000
8.4000
8.4000
8.7760
8.7760
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
7.2100
7.2100
6.8000
6.2560
7.1634
7.4000
8.4000
8.4000
8.7760
8.7760
Overlapping Rates
Lee
County
General
4.2612
3.9332
3.5216
3.6506
3.6506
3.6506
3.6506
3.6506
3.6506
4.1506
Other
2.6562
2.6091
2.2909
1.7276
1.6328
1.6887
1.7715
1.5996
1.5822
1.3271
(3)
School
District
Millage
Total Direct &
Overlapping
Rates (4)
8.065
7.882
7.012
6.960
6.868
7.508
8.015
7.854
7.584
7.598
22.1924
21.6343
19.6245
18.5942
19.3148
20.2473
21.8371
21.5042
21.5928
21.8517
Source: Lee County Tax Collector
(1)
(2)
(3)
(4)
Calendar year basis.
The City's operating millage tax rate may be increased only by a majority vote of the City Council.
'Other' consists of Lee County Capital Improvement, Lee County Library Fund, Lee County All Hazards, and other Special Districts.
Total Direct and Overlapping Rates changed in fiscal year 2010 due to the addition of other overlapping rates.
164
CITY OF FORT MYERS, FLORIDA
Schedule 7 - Principal Property Taxpayers
September 30, 2014
Current Year and Nine Years Ago
($ in thousands)
2014 (1)
Taxable
Assessed
Valuation
Taxpayer
Edison Mall Business Trust
Gulf Stream Isles Apartments
Inland Diversified
Cole Mt. Fort Myers
Fort Myers Imports LLC
Cypress Legends LLC
The Palms at Ft. Myers
SptMrt Properties Trust
Cypress Woods Associates LLC
Obrien Automotive of Florida
TGM Gulfstream Inc.
FM Properties II LTD
Wal-Mart Stores East LP
SW Florida Regional Medical Center
Bay Colony Gateway Inc.
Stock Development LLC
SptMrt Properties Trust
Acacia Credit Fund 9-A LLC
IMT Reflections Apartments LLC
Total
Source:
(1)
(2)
Notes:
$
$
76,841
18,547
15,729
15,424
13,013
11,870
10,869
10,407
9,574
9,497
2005 (2)
Rank
Percentage of
Total Taxable
Assessed
Value
1
2
3
4
5
6
7
8
9
10
1.83%
0.44%
0.37%
0.37%
0.31%
0.28%
0.26%
0.25%
0.23%
0.23%
191,771
4.57%
Taxable
Assessed
Valuation
Rank
Percentage of
Total Taxable
Assessed
Value
$
88,151
1
2.83%
2
3
4
5
6
7
8
9
10
$
42,944
31,428
17,131
17,009
16,378
15,290
14,416
12,789
12,600
268,136
1.38%
1.01%
0.55%
0.55%
0.53%
0.49%
0.46%
0.41%
0.40%
8.61%
Lee County Property Appraiser - 2013 Tax Roll
City of Fort Myers Budget Office - FY 2013-14 Budget Book
Lee County Property Appraiser - 2004 Tax Roll
City of Fort Myers CAFR September 30, 2005
2013 Total Taxable Assessed Value for Fiscal Year 2014 is $4,200,258.
2004 Total Taxable Assessed Value for Fiscal Year 2005 is $3,119,259.
The comparative percentages in the 2005 CAFR are dissimilar due to the fact that Total Assessed Value was used as the
basis of that calculation, whereas total Taxable Assessed Value is used as the basis above, in accordance with GASB 44.
165
CITY OF FORT MYERS, FLORIDA
Schedule 8 - Property Tax Levies and Collections
Last Ten Tax Years
($ in thousands)
Tax
(1)
Year
2004
Total Tax
Levy
$
22,408
Collected within the Year of the
Levy
Amount
Percentage
Collected
of Levy
$
Total Collections to Date
Amount
Percent of
Collected
Levy
Prior Years Tax
Collections (2)
22,062
98.5%
22,104
98.6%
2005
2006
29,306
40,352
28,988
39,816
98.9%
98.7%
$
325
60
42
$
29,313
39,876
100.0%
98.8%
2007
2008
2009
2010
2011
43,837
48,693
39,015
35,959
33,676
43,286
47,918
38,637
35,680
33,572
98.7%
98.4%
99.0%
99.2%
99.7%
61
(24)
395
(77)
1,349
43,347
47,894
39,032
35,603
34,921
98.9%
98.4%
100.0%
99.0%
103.7%
2012
2013
35,586
36,761
35,454
36,717
99.6%
99.9%
(141)
233
35,313
36,950
99.2%
100.5%
Source: Lee County Tax Collector
(1)
(2)
Calendar year basis.
The Lee County Tax Collector auctions current year delinquent tax certificates in June of each year.
The County cannot reasonably provide us with delinquent taxes by year.
166
CITY OF FORT MYERS, FLORIDA
Schedule 9 - Water Sold by Type of Customer and Wastewater Billed by Type of Customer
Last Ten Fiscal Years
(in millions of gallons)
Water:
Type of Customer
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Residential
Commercial
Total
719.4
1,678.7
2,398.1
1,477.5
977.9
2,455.4
1,312.1
1,165.7
2,477.8
1,248.3
2,305.1
3,553.4
1,231.7
2,778.0
4,009.7
1,208.9
2,630.9
3,839.8
1,186.6
2,979.4
4,166.0
1,198.4
3,024.1
4,222.5
1,188.8
2,773.1
3,961.9
1,308.0
2,899.0
4,207.0
Total direct rate
per 1,000 gallons
$ 3.26
$ 3.42
$ 3.59
$ 3.31
$ 3.61
$ 3.93
$ 4.28
$ 4.28
$ 4.49
$ 4.67
Wastewater:
Type of Customer
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Residential
Commercial
Total
1,280.7
683.5
1,964.2
1,407.3
681.2
2,088.5
1,254.8
643.4
1,898.2
1,198.0
645.7
1,843.7
1,183.6
670.4
1,854.0
1,159.6
669.3
1,828.9
1,139.8
668.7
1,808.5
1,156.5
665.7
1,822.2
1,146.7
671.7
1,818.4
1,266.2
677.4
1,943.6
Total direct rate
per 1,000 gallons
$ 7.01
$ 7.36
$ 7.73
$ 8.06
$ 8.79
$ 9.58
$10.44
$10.44
$10.96
$11.40
(1)
(1)
Source: City of Fort Myers Utility Billing Department
Note:
(1)
The City of Fort Myers' rates change incrementally with increases in usage of volume.
Fiscal year 2012 direct rates were corrected in fiscal year 2013 to reflect no rate increase from fiscal year 2011 to fiscal year 2012.
167
CITY OF FORT MYERS, FLORIDA
Schedule 10 - Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
($ in thousands)
Governmental Activities (3)
Revenue
Bonds
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$
99,327
93,521
141,762
135,459
129,500
123,307
116,835
110,062
102,908
108,614
Capital
Leases
$
Business-Type Activities
Utility
State
Revenue
Revolving
Fund Loans
Bonds (3)
Notes
Payable
286
48
589
702
$
11,694
12,369
8,348
8,937
7,841
6,079
5,558
5,037
4,515
3,994
$
101,208
136,276
132,247
127,871
124,445
119,005
114,452
136,974
139,749
136,497
$
19,579
30,711
50,939
74,014
71,552
70,144
80,750
82,018
77,626
73,162
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1)
(2)
(3)
(4)
See Schedule 14 for personal income and population data. Percentage of Personal Income changed in fiscal year
2010 for fiscal years 2005 to 2009 to use City data. Prior ratios were calculated with Lee County data.
Debt Per Capita changed in fiscal year 2010 for fiscal years 2005 to 2009 to use City data.
Corrected fiscal years 2005 to 2012 to report outstanding debt net of related premiums, discounts, and adjustments.
Calculation changed for fiscal years 2005 to 2012 due to reporting change in net outstanding debt amounts.
CITY OF FORT MYERS, FLORIDA
Schedule 11 - Direct and Overlapping Governmental Activities Debt
September 30, 2014
Net Debt
Outstanding
Jurisdiction
City of Fort Myers
$
Overlapping Bonded Debt:
Lee County
School Board
Total Overlapping Bonded Debt
Total net direct and net overlapping bonded debt
$
Percentage
Applicable to
Fort Myers (1)
113,310,298
100.00%
232,823,000
457,713,485
690,536,485
6.29%
6.29%
803,846,783
Amount
Applicable to
Fort Myers
$
113,310,298
14,643,728
28,788,529
43,432,256
$
156,742,554
Sources:
Lee County, Finance Division
Lee County Clerk of Court
Lee County School Board, Finance Division
City of Fort Myers Annual Budget Book
Note:
Overlapping governments are those that coincide, at least in part, with geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
property taxpayers of the City of Fort Myers. This process recognizes that, when considering the government's
ability to issue and repay long-term debt, the entire burden borne by the property taxpayers should be taken into
account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying
the debt, of each overlapping government.
(1)
Calculated as a ratio of taxable valuation of property in the City of Fort Myers ($4,559,818,000) to total taxable valuation
of property in Lee County ($72,497,286,000).
168
CITY OF FORT MYERS, FLORIDA
Schedule 10 - Ratio of Outstanding Debt by Type (continued)
Last Ten Fiscal Years
($ in thousands)
Business-Type Activities
Other
Revenue
Capital
Leases
Bonds (3)
Other
Utility
Debt (3)
$
12,087
550
11,219
49,202
126,395
83,845
60,823
50,000
49,472
48,912
$
1,897
1,847
1,024
953
931
907
882
853
777
665
$
62
-
Other
Proprietary
Debt
$
660
5,760
5,150
5,000
4,845
4,683
4,513
4,335
4,149
3,953
169
Total
Primary
Government (1)(3)
$
246,800
281,082
350,689
401,436
465,509
407,970
383,813
389,279
379,785
376,499
Debt
Per
Capita (2)(4)
Percentage
of Personal
Income (1)(4)
11.56%
12.08%
13.11%
13.96%
16.86%
15.25%
19.86%
13.68%
14.18%
12.76%
$
4,019
4,276
5,169
5,844
6,764
5,983
6,029
5,824
5,662
5,424
CITY OF FORT MYERS, FLORIDA
Schedule 12 - General Revenue Bonds - Pledged Revenue Coverage
Last Ten Fiscal Years
($ in thousands)
General Revenue Bonds
Excess
Utilities
Tax
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$
5,268
5,507
5,765
5,727
5,923
6,338
6,471
6,694
7,261
8,048
Guaranteed
Entitlement
Funds
Communications
Tax
$
3,804
4,189
4,314
4,682
4,378
3,571
3,557
4,064
3,913
3,342
$
893
893
893
893
893
893
893
893
893
893
Franchise
Taxes
$
4,037
5,088
5,585
5,794
5,949
5,223
5,248
5,072
5,028
5,433
Local Business
Tax
$
1,543
1,755
1,825
1,642
1,616
1,568
1,465
1,651
1,693
1,745
Note: Debt service coverage is based on pledged revenues and annual debt service.
(1)
Added Interest to the Debt Service requirements in fiscal year 2010 for fiscal years 2004 to 2009.
(2)
Recalculated Bond Coverage for fiscal years 2004 to 2009 due to the addition of Interest to the Debt Service requirements in
fiscal year 2010.
General Revenue Bonds
Excess
Utilities
Tax
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$
5,268
5,507
5,765
5,727
5,923
6,338
6,471
6,694
7,261
8,048
Guaranteed
Entitlement
Funds
Communications
Tax
$
3,804
4,189
4,314
4,682
4,378
3,571
3,557
4,064
3,913
3,342
$
893
893
893
893
893
893
893
893
893
893
Franchise
Taxes
$
4,037
5,088
5,585
5,794
5,949
5,223
5,248
5,072
5,028
5,433
Local Business
Tax
$
1,543
1,755
1,825
1,642
1,616
1,568
1,465
1,651
1,693
1,745
Note: Bond coverage is based on the bond document calculation.
(1)
Recalculated Maximum Principal and Interest, based on maximum per fiscal year, in fiscal year 2010 for fiscal years 2005 to
2008. Prior calculations were based on maximum per bond year.
(2)
Recalculated Bond Coverages in fiscal year 2010 due to the change in Maximum Principal and Interest for fiscal years 2005 to
2008.
Community Redevelopment Revenue Note, Series 2005
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Tax Increment
Financing
Revenues
$
1,635
3,261
4,912
5,457
7,633
5,117
2,899
2,496
2,780
2,942
Maximum
Principal and
Interest
$
4,556
4,556
4,556
4,556
4,556
735
718
698
678
658
Bond
Coverage
0.36
0.72
1.08
1.20
1.68
6.96
4.04
3.58
4.10
4.47
170
CITY OF FORT MYERS, FLORIDA
Schedule 12 - General Revenue Bonds - Pledged Revenue Coverage (continued)
Last Ten Fiscal Years
($ in thousands)
General Revenue Bonds (continued)
Total
Pledged
Revenues
Half-Cent
Sales Tax
$
5,539
5,924
5,531
4,802
4,169
4,184
4,404
4,282
4,660
5,217
$
21,084
23,356
23,913
23,540
22,928
21,777
22,038
22,656
23,448
24,678
Principal
$
Debt Service
Interest (1)
4,275
4,475
4,395
4,445
4,310
5,674
4,686
4,965
5,370
5,630
$
3,800
3,604
4,564
4,964
5,242
5,032
4,810
4,575
4,320
4,047
General Revenue Bonds (continued)
Total
Pledged
Revenues
Half-Cent
Sales Tax
$
5,539
5,924
5,531
4,802
4,169
4,184
4,404
4,282
4,660
5,217
$
21,084
23,356
23,913
23,540
22,928
21,777
22,038
22,656
23,448
24,678
Maximum
Principal and
Interest (1)
$
8,079
8,079
9,690
9,690
10,706
10,706
9,690
9,690
9,677
11,147
Bond
Coverage (2)
2.61
2.89
2.47
2.43
2.14
2.03
2.27
2.34
2.42
2.21
171
Bond
(2)
Coverage
2.61
2.89
2.67
2.50
2.40
2.03
2.32
2.37
2.42
2.55
CITY OF FORT MYERS, FLORIDA
Schedule 13 - Water-Wastewater Utility - Pledged Revenue Coverage
Last Ten Fiscal Years
($ in thousands)
Coverage based on current year results and not calculated according to the bond documents.
Fiscal
Gross
Utility
Direct
Operating
Net
Operating
Pledged
Impact Fees
Total
Available
Year
Revenues
Expenses
Revenues
Available
Revenues
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$
42,560
44,728
42,899
43,579
45,692
48,301
51,137
51,978
52,961
60,924
$
19,677
27,071
29,723
32,232
33,194
32,822
32,594
34,034
34,941
36,010
$
22,883
17,657
13,176
11,347
12,498
15,479
18,543
17,944
18,020
24,914
$
677
1,267
1,761
1,228
52
-
$
23,560
18,924
14,937
12,575
12,550
15,479
18,543
17,944
18,020
24,914
Note: Corrected prior years for consistency in interpretation of bond documents.
Coverage calculated according to the bond documents for coverage and additional bonds test.
Total
Operating
Revenues
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$
42,560
44,056
41,588
43,548
46,069
48,752
51,433
52,008
53,039
58,558
Total
Operating
Expenses
$
19,677
26,291
26,536
30,371
30,262
26,203
25,862
26,891
27,320
28,381
Net
Operating
Revenues
$
22,883
17,765
15,052
13,177
15,807
22,549
25,571
25,117
25,719
30,177
Adjustments
Per Bond
Documents
$
4,369
5,746
5,038
5,980
9,453
8,647
9,380
9,410
9,389
9,923
Net Operating
Revenues
Available for
Debt Service
$
27,252
23,511
20,090
19,157
25,260
31,196
34,951
34,527
35,108
40,100
Note: Corrected prior years for consistency in interpretation of bond documents.
(1)
In fiscal year 2010, the basis for Maximum Debt Service changed from bond year to fiscal year for fiscal years 2005 to 2009.
172
CITY OF FORT MYERS, FLORIDA
Schedule 13 - Water-Wastewater Utility - Pledged Revenue Coverage (continued)
Last Ten Fiscal Years
($ in thousands)
Debt Service
Principal
$
3,610
6,040
5,105
5,340
5,405
4,050
5,600
5,865
2,738
4,459
Impact Fees
Available for
Debt Service
$
677
1,267
1,761
1,228
52
-
Interest
$
5,250
5,948
6,747
6,560
8,647
8,344
8,362
7,184
7,651
7,822
27,929
24,778
21,851
20,385
25,312
31,196
34,951
34,527
35,108
40,100
Utility
Bonds and
Notes
Coverage
Debt Service
Coverage
2.67
1.58
1.26
1.06
0.89
1.25
1.33
1.38
1.73
2.03
Total
Revenues
Available for
Debt Service
$
Bonded
State
Revolving
Loan
Maximum
Debt
Service
$
11,114
12,842
12,842
12,842
15,875
15,781
16,083
16,271
16,499
16,271
$
(1)
649
1,436
2,177
5,174
5,971
6,335
6,450
6,451
6,453
Coverage
NOR
Available for
Debt Service
2.45
1.83
1.56
1.49
1.59
1.98
2.17
2.12
2.13
2.46
2.67
1.50
1.12
0.89
0.65
0.84
0.91
0.92
1.07
1.33
Coverage
Total
Revenues
Available
2.51
1.93
1.70
1.59
1.59
1.98
2.17
2.12
2.13
2.46
173
State
Revolving
Loan Maximum
Debt Service
$
3,193
3,978
5,409
5,602
5,694
7,004
6,815
6,453
6,453
6,453
Coverage
Total
Revenues
Debt Service
5.27
3.00
1.67
1.35
1.66
2.20
2.77
2.83
2.88
3.69
CITY OF FORT MYERS, FLORIDA
Schedule 14 - Demographic and Economic Statistics
Last Ten Fiscal Years
Population
City of
Fort
(2)
Myers
Year
2005
2006
2007
2008
2009
61,412
65,729
67,851
68,689
68,819
Lee County
Lee
(3)
County
549,442
585,608
615,741
623,725
615,124
2010
2011
2012
2013
2014
62,298
63,662
66,835
67,081
69,413
618,754
625,310
638,029
643,367
653,485
2019
As Projected
77,175 (7)
713,973
Sources:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Total
Personal
Income
(4)
(in thousands)
$ 19,098,604
20,736,965
24,266,353
26,111,623
24,674,348
1,422,762
1,465,062
1,570,288
1,579,154
1,569,566
Per
Capita
(5)
Income
$
Labor
(6)
Force
(1)
Unemployed
(6)
Unemployment
(6)
Rate
31,487
33,073
39,410
41,864
41,954
256,557
278,098
295,730
284,605
272,069
8,774
6,823
15,344
26,200
37,789
3.4%
2.5%
5.2%
9.2%
13.9%
22,838
23,517
23,495
23,541
22,612
City of Fort Myers (1)
30,049
29,786
28,211
28,885
30,728
3,378
3,034
2,436
1,928
1,746
11.2%
10.2%
8.6%
6.7%
5.7%
(7)
City of Fort Myers statistics not available until 2010.
Lee County Economic Development (2005-2006).
Office of Economic and Demographic Research - Edr.state.fl (2007-2009). Population is projected.
US Census Bureau (2010).
Bureau of Economic and Business Research, University of Florida (2011-2014). Population is projected.
Lee County Planning Department (2005-2006).
Office of Economic and Demographic Research - Edr.state.fl (2007-2009). Population is projected.
US Census Bureau (2010).
Bureau of Economic and Business Research, University of Florida (2011-2014). Population is projected.
Bureau of Economic and Business Research Population for Counties and Municipalities Revenue (2005-2006).
Lee County, Florida, Comprehensive Annual Financial Report, Demographic Statistics (2007-2009).
City of Fort Myers, Geographic Information Systems (2010-2014). Total personal income is estimated.
Bureau of Economic and Business Research, Woods & Poole MSA Profile; Sales and Marketing (2005-2006).
Lee County, Florida, Comprehensive Annual Financial Report, Demographic Statistics (2007-2009).
City of Fort Myers, Geographic Information Systems (2010-2014). Per capita income is estimated.
Florida Department of Labor and Employment, Division of Labor, Employment and Training (2005-2006).
Florida Agency for Workforce Innovation, Labor Market Statistics Center (2007-2009).
Florida Department of Economic Opportunity (2010-2014).
City of Fort Myers, Geographic Information Systems
174
LEE COUNTY, FLORIDA
Schedule 15 - Principal Employers (1)
September 30, 2014
Current Year and Nine Years Ago
2014
Employer
Employees
Lee Memorial Health System
10,500
Lee County School District
10,000
Publix Super Markets
5,297
Lee County Administration
2,528
Wal-Mart Corporation
2,075
Chico's FAS, Inc.
1,703
City of Cape Coral
1,654
Lee County Sheriff's Office
1,508
Florid Gulf Coast University
1,490
Shell Point Retirement Community
1,000
U.S. Postal Service
Southwest Florida Regional Medical Center
Bonita Bay Group
Total
37,755
(2)
2005
Rank
Percentage of
Total County
Employment
1
2
3
4
5
6
7
8
9
10
3.72%
3.54%
1.88%
0.89%
0.73%
0.60%
0.59%
0.53%
0.53%
0.35%
Employees
Rank
Percentage of
Total County
Employment
6,473
10,044
2,857
2,523
2,189
2
1
3
4
5
3.09%
4.79%
1.36%
1.20%
1.04%
1,461
1,296
7
9
0.70%
0.62%
1,267
1,500
1,300
30,910
10
6
8
0.60%
0.72%
0.62%
14.74%
13.36%
Source: Lee County Office of Economic Development, Florida Research and Economic Database, and U.S. Bureau of Labor Statistics.
(1)
(2)
The information provides Lee County statistics since statistics for the City of Fort Myers are not available.
As of July 2014.
CITY OF FORT MYERS, FLORIDA
Schedule 16 - Full-Time Equivalent Government - Employees by Function/Program
Last Ten Fiscal Years
2005
Function
General Government
Public Safety
Physical Environment
Transportation
Culture/Recreation
Community Development
Total
Source:
121.5
473.8
262.3
24.0
162.3
13.4
1,057.3
2006
132.0
494.1
274.9
24.5
160.8
13.1
1,099.4
2007
145.0
529.3
298.4
24.5
111.8
20.6
1,129.6
2008
145.9
530.1
302.1
24.6
123.3
17.5
1,143.5
2009
2010
143.6
511.7
295.9
22.6
122.4
17.4
1,113.6
119.6
412.5
259.7
18.6
103.6
14.0
928.0
2011
114.0
427.4
253.8
19.0
100.3
13.4
927.9
2012
2013
2014
114.0
427.4
253.8
19.0
103.4
13.4
931.0
114.0
426.9
253.8
19.0
104.9
13.9
932.5
117.0
436.8
252.5
19.0
103.4
13.9
942.6
City of Fort Myers Budget Office.
Note: The City of Fort Myers implemented the government-wide information required by GASB Statement 44 retroactively to fiscal year 2005. In fiscal year 2011,
the data was expanded to reflect the accurate ratio of full-time positions.
175
CITY OF FORT MYERS, FLORIDA
Schedule 17 - Operations Indicators by Function/Program
Last Ten Fiscal Years
Function/Program
Police
Number of police personnel and officers
Physical arrests
Traffic violations
Parking violations
2005
2006
2007
2008
2009
2010
2011
2012
2013
263
7,913
18,844
11,545
193
7,288
17,921
8,455
203
6,561
17,991
6,861
244
6,920
15,655
5,974
257
5,398
10,213
7,616
268
5,697
20,964
6,976
264
5,498
18,463
7,400
250
5,844
24,602
8,232
250
5,829
20,623
7,373
251
5,381
19,253
7,000 (4)
Fire
Number of fire personnel and officers
Number of calls answered
Number of inspections conducted
115
16,654
6,175
115
16,071
5,446
126
14,957
4,609
126
13,983
6,102
121
14,690
5,405
120
14,725
3,452
149
15,793
3,429
142
15,933
2,943
140
15,592
3,375
140
14,250
3,969
Solid Waste
Commercial MSW (tonnage)
Residential MSW (tonnage)
Roll-Off Debris (tonnage)
Recycling (tonnage)
32,745
14,880
3,225
-
37,092
17,219
5,583
-
33,606
15,705
6,891
-
31,733
12,060
14,245
-
29,607
8,488
14,949
-
28,325
7,952
15,307
-
30,997
5,588
15,075
-
31,802
5,359
14,945
-
29,742
8,442
16,398
4,014
28,946
9,916
16,748
4,300
735,453
337,801
573,023
663,430
555,145
990,185
1,056,291
1,188,389
1,073,336
900,826
17,026
8,034,000
18,598
6,878,000
18,893
7,524,000
20,194
6,601,376
20,576
6,129,000
21,010
6,020,000
21,365
6,024,910
22,193
6,042,200
22,919
6,326,401
23,132
6,820,250
9,300,000
9,404,000
9,438,000
12,000,000 (2) 12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
Culture and Recreation
City Recreation Venues (3)
Water system
Number of service connections
Daily average finished flow in gallons
Maximum daily capacity of plants, in
gallons
Wastewater system
Number of service connections
Daily average treatment in gallons
Maximum daily capacity of treatment
plants, in gallons
Building, Permits, and Inspection
Building permits issued
Golf Courses
Number of rounds per year, Eastwood
Number of rounds per year, Fort Myers
15,174
16,627
16,949
16,394
16,552
16,690
16,859
17,530
18,680
16,620,000
17,532,500
14,610,000
15,544,000
14,230,000
14,857,000
13,710,000
14,540,000
14,890,000
11,648,000 (5)
23,000,000
23,000,000
23,000,000
23,000,000
23,000,000
23,000,000
23,000,000
23,000,000
23,000,000
23,000,000
7,265
8,085
7,705
5,358
4,122
4,941
5,323
5,836
6,548
7,465
63,565
64,254
58,929
65,434
39,279 (1)
76,828
48,048 (1)
67,169
56,399
57,905
55,327
55,625
56,117
55,444
52,196
52,335
54,920
53,565
59,741
38,930 (6)
Sources: Various city departments
Note: The City of Fort Myers implemented the government-wide information required by GASB Statement 44 retroactively to fiscal year 2005. In fiscal year 2013, the City
changed this schedule to enhance the reporting of Operating Indicators. Therefore, the Capital Assets Statistics reported in previous fiscal years' Schedule 17 transferred to
Schedule 18.
(1)
(2)
(3)
(4)
(5)
(6)
2014
In fiscal years 2007 and 2008, the Eastwood Golf Course was closed due to renovations, which led to a temporary increase at the Fort Myers Country Club.
Water Plant enhancement
Includes City community centers, athletics and aquatics venues, and special events.
Reporting period January 2014 to September 2014.
Less influent from Lee County to South Plant, also lower rainfall than normal in 2014.
Fort Myers Country Club closed five months for renovations, which led to a temporary increase at the Eastwood Golf Course.
176
21,058
CITY OF FORT MYERS, FLORIDA
Schedule 18 - Capital Asset Statistics by Function
Last Ten Fiscal Years
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
General Government
Number of Enterprise Center buildings
Number of Facility Management vehicles
2
12
2
13
2
13
2
14
2
14
2
14
2
14
2
14
2
13
2
12
Police
Number of stations
Number of patrol vehicles
5
82
4
91
2
100
2
113
2
120
2
120
2
120
2
114
2
111
2
109
5
9
2
2
4
5
9
2
2
5
6
10
2
2
5
6
10
2
2
5
6
10
2
2
5
6
10
2
2
5
6
10
2
2
5
6
10
2
2
5
6
10
2
2
5
6
11
2
2
5
5
27
491
4
21
1
5
28
504
4
16
1
5
29
505
4
16
1
5
30
507
4
16
1
3
34
451
4
16
1
3
35
451
4
16
1
3
35
537
4
16
1
3
35
537
4
16
1
3
36
537
4
16
1
3
36
537
4
16
1
Public Works
Number of Public Works buildings
Miles of City maintained streets
Number of street lights
Number of bridges
Number of culverts
n/a
230
8,286
n/a
n/a
n/a
260
9,500
n/a
n/a
n/a
272
9,850
n/a
n/a
n/a
240
10,346
n/a
n/a
n/a
240
10,346
n/a
n/a
n/a
240
10,346
n/a
n/a
n/a
240
10,346
n/a
n/a
n/a
240
10,346
n/a
n/a
132
240
10,346
16
12
132
240
10,346
27
12
Sewer system
Miles of sanitary sewers
Number of sewer treatment plants
236
2
328
2
337
2
372
2
388
2
400
2
406
2
410
2
410
2
422
2
Water system
Number of water treatment plants
Miles of water mains
Number of fire hydrants
1
314
1,500
1
344
1,500
1
378
3,483
1
383
3,644
1
397
4,600
1
413
4,600
1
441
3,185
1
453
3,188
1
458
3,188
1
469
3,231
Stormwater
Miles of storm drainage pipes
Number of catch basins
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
139
831
139
844
Solid Waste
Number of refuse collection vehicles
34
42
43
39
39
38
37
38
41
44
Golf Courses
Number of golf courses
Number of holes
2
36
2
36
2
36
2
36
2
36
2
36
2
36
2
36
2
36
2
36
296
150
296
145
296
145
296
140
296
135
296
130
295
130
295
130
284
147
284
140
Downtown Parking Garages
Number of parking garages
2
2
2
2
2
2
2
2
2
2
Harborside Event Center
Number of event center buildings
1
1
1
1
1
1
1
1
1
1
Cultural and Historic Affairs
Number of buildings
4
4
4
4
4
4
4
4
4
4
Fire
Number of stations
Number of fire fighting units
Number of rescue units
Number of marine units
Number of support/specialty units
Culture and Recreation
Number of community centers
Number of parks
Park acreage (including golf courses)
Number of swimming pools
Number of tennis courts
Number of skate parks
Yacht Basin/Marina
Number of slips
Number of transient boats docked (4)
(1)
(2)
(3)
(2)
(3)
(2)
(3)
Sources: Various city departments
Note: The City of Fort Myers implemented the government-wide information required by GASB Statement 44 retroactively to fiscal year 2005. In fiscal
year 2013, the City changed this schedule to provide more details on Capital Assets Statistics. Previous fiscal years' Schedule 18 reported number of
assets by function.
(1)
(2)
(3)
(4)
(5)
Corrected to report only City maintained roads. Previous data included all roads, some of which were federal and state roads.
Fluctuation from fiscal year 2010 to 2011 based on GPS enhancements available in fiscal year 2011.
In fiscal year 2014, acreage corrected for fiscal years 2011 - 2013 to remove the inclusion of wellfield acres for the golf courses.
In fiscal year 2014, hydrants corrected for fiscal years 2011 - 2013 to remove the inclusion of hydrants owned and maintained privately or by Lee
County. Fluctuations in fiscal years 2008 - 2010 resulted from estimates during the survey.
This is an estimated count as the number of transient boaters fluctuates.
Updated in fiscal year 2014 based on current GIS data.
177
(5)
178
Single Audit Report
Mayer Hoffman McCann P.C.
An Independent CPA Firm
13577 Feather Sound Drive, Suite 400  Clearwater, Florida 33762
Main: 727.572.1400  Fax: 727.571.1933  www.mhm-pc.com
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor and City Council
City of Fort Myers
Fort Myers, Florida:
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Fort Myers, Florida (the “City”), as of and for the year ended September 30, 2014, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated February 13, 2015. We have also audited the balance sheet and
statement of revenues, expenditures and changes in fund balances of the City of Fort Myers, Florida,
Community Redevelopment Agency, presented in the accompanying combining and individual fund
financial statements and schedules as of and for the year ended September 30, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
179
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
February 13, 2015
Clearwater, Florida
180
CITY OF FORT MYERS, FLORIDA
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2014
FUNDING AGENCY / GRANT NAME
FEDERAL
CFDA
NUMBER
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Community Development Block Grant / Entitlement Grant Cluster
Community Development Block Grant (CDBG)
14.218
Community Development Block Grant (CDBG)
14.218
Neighborhood Stabilization Program 1 (NSP1)
14.218
Neighborhood Stabilization Program 1 (NSP1)
14.218
Neighborhood Stabilization Program 3 (NSP3)
14.218
Neighborhood Stabilization Program 3 (NSP3)
14.218
Total Community Development Block Grant /
Entitlement Grant Cluster
Total U.S. Department of Housing and Urban Development
FEDERAL OR
Passed through
GRANT NUMBER
B-12-MC-12-0006
B-13-MC-12-0006
B-08-MN-12-0008
Program Income
B-11-MN-12-0008
Program Income
14.218 Total
TOTAL
EXPENDITURES
$
626,027
148,412
19,283
15,118
223,321
156,334
1,188,495
1,188,495
TRANSFER TO
SUBRECIPIENTS
$
13,333
51,942
8,100
11,100
84,475
84,475
U.S. DEPARTMENT OF THE INTERIOR
Passed through Florida Department of Environmental Protection
Land and Water Conservation Fund Grant
Total U.S. Department of the Interior
U.S. DEPARTMENT OF JUSTICE
Bulletproof Vest Partnership Grant FY 2013
Bulletproof Vest Partnership Grant FY 2014
15.916
LW580
26,111
26,111
16.607
16.607
None
None
197
9,573
9,770
16.607 Total
Edward Byrne Memorial Justice Assistance Grant Program
Edward Byrne Memorial Justice Assistance
Grant Program 2011
Edward Byrne Memorial Justice Assistance
Grant Program 2014
16.738
2011-DJ-BX-2351
450
16.738
2013-DJ-BX-0235
51,777
Passed through Florida Department of Law Enforcement
Edward Byrne Memorial Justice Assistance Grant Countywide
16.738
2014-JAGC-LEE-1-E5-042
16.738 Total
Total U.S. Department of Justice
19,790
72,017
81,787
U.S. DEPARTMENT OF TRANSPORTATION
Federal Highway Administration (FHWA)
Passed through State of Florida, Department of Transportation (FDOT)
Passed through the University of South Florida
Highway Planning and Construction - Federal Aid
Highway Program, Federal Lands Highway Program FDOT-Florida Bicycle/Pedestrian Focused Initiative Communication
and High Visibility Enforcement Program
20.205
BDV25
12,003
K8-14-06-01
52,692
64,695
PA-04-FL-4068-PW-00431(0)
69,000
National Highway Traffic Safety Administration (NHTSA)
Passed through State of Florida, Department of Transportation (FDOT)
Alcohol Impaired Driving Countermeasures Incentive Grants I FDOT-DUI Enforcement and Education
20.601
Total U.S. Department of Transportation
U.S. DEPARTMENT OF HOMELAND SECURITY
Passed through Florida Division of Emergency Management
Hazard Mitigation Grant - HMGP
Riverside Park Floating Dock Replacement
97.039
Note: The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting in accordance with accounting principles generally accepted in the
United States of America.
181
CITY OF FORT MYERS, FLORIDA
Schedule of Expenditures of Federal Awards (continued)
For the Year Ended September 30, 2014
FUNDING AGENCY / GRANT NAME
FEDERAL
CFDA
NUMBER
U.S. DEPARTMENT OF HOMELAND SECURITY (continued)
Passed through Florida Division of Emergency Management (continued)
State Homeland Security Grant Program
97.067
State Homeland Security Grant Program
97.067
State Homeland Security Grant Program
97.067
Staffing for Adequate Fire and Emergency Response Hiring Program - FEMA 2012
Total U.S. Department of Homeland Security
97.083
TOTAL EXPENDITURES OF FEDERAL AWARDS
FEDERAL OR
Passed through
GRANT NUMBER
12DS-20-13-00-16
13-DS-97-13-00-16-409
14DS-L5-09-46-01-399
97.067 Total
TOTAL
EXPENDITURES
$
EMW-2012-FH-00249
18,095
14,320
1,587
34,002
TRANSFER TO
SUBRECIPIENTS
$
-
$
84,475
1,951,863
2,054,865
$
3,415,953
Note: The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting in accordance with accounting principles generally accepted in the
United States of America.
182
CITY OF FORT MYERS, FLORIDA
Schedule of Expenditures of State Financial Assistance
For the Year Ended September 30, 2014
FUNDING AGENCY / GRANT NAME
STATE
CSFA
NUMBER
FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION
Statewide Surface Water Restoration and Wastewater **
Projects - Carrell Canal Water Quality Retrofit
37.039
Total Florida Department of Environmental Protection
FLORIDA HOUSING FINANCE CORPORATION
State Housing Initiatives Partnership Program
Total Florida Housing Finance Corporation
FLORIDA DEPARTMENT OF TRANSPORTATION
Highway Beautification Council Grant State Road 884, Colonial Boulevard
Total Florida Department of Transportation
FLORIDA DEPARTMENT OF JUVENILE JUSTICE
Delinquency Prevention-Truancy Assistance Program
Total Florida Department of Juvenile Justice
STATE
GRANT NUMBER
S0713
TOTAL
EXPENDITURES
$
463,539
463,539
52.901
None
131,618
131,618
55.003
435693-1
66,000
66,000
80.029
10021
24,261
24,261
TOTAL EXPENDITURES OF STATE AWARDS
$
685,418
TRANSFER TO
SUBRECIPIENTS
$
-
21,605
21,605
$
21,605
Note: The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting in accordance with accounting principles generally accepted in the
United States of America.
183
Mayer Hoffman McCann P.C.
An Independent CPA Firm
13577 Feather Sound Drive, Suite 400  Clearwater, Florida 33762
Main: 727.572.1400  Fax: 727.571.1933  www.mhm-pc.com
Independent Auditor’s Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by OMB Circular A-133 and
Chapter 10.550, Rules of the Auditor General of the State of Florida
Honorable Mayor and City Council
City of Fort Myers
Fort Myers, Florida:
Report on Compliance for Each Major Federal Program and State Financial Assistance Projects
We have audited the City of Fort Myers, Florida (the “City”)’s compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement and the requirements
described in the State of Florida Department of Financial Services State Projects Compliance Supplement
that could have a direct and material effect on each of the City’s major federal programs and state
financial assistance projects for the year ended September 30, 2014. The City’s major federal programs
and state financial assistance projects are identified in the summary of auditor’s results section of the
accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs and state financial assistance projects.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs
and state financial assistance projects based on our audit of the types of compliance requirements referred
to above. We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations, and Chapter 10.550, Rules of the Auditor
General. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General,
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program and state financial assistance projects occurred. An audit includes examining,
on a test basis, evidence about the City’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program and state financial assistance project. However, our audit does not provide a legal
determination of City’s compliance.
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Opinion on Each Major Federal Program and State Financial Assistance Project
In our opinion, the City, complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs and
state financial assistance projects for the year ended September 30, 2014.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the City’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program and state
financial assistance project to determine the auditing procedures that are appropriate in the circumstances
for the purpose of expressing an opinion on compliance for each major federal program and state financial
assistance project and to test and report on internal control over compliance in accordance with OMB
Circular A-133 and Chapter 10.550, Rules of the Auditor General, but not for the purpose of expressing
an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program and state financial assistance projects on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program and state financial assistance project will not be prevented,
or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance
is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program or state financial assistance project that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not
suitable for any other purpose.
February 13, 2015
Clearwater, Florida
185
CITY OF FORT MYERS, FLORIDA
Schedule of Findings and Questioned Costs
Year Ended September 30, 2014
Section I - Summary of Auditor’s Results
Financial Statement
Type of auditor’s report issued:
Unmodified
Internal control over financial reporting:
•
Material weakness(es) identified?
Yes
X
No
•
Significant deficiency(ies) identified that are
not considered to be material weaknesses?
Yes
X
None reported
Yes
X
No
Noncompliance material to financial statements noted?
Federal and State Awards
Internal control over major programs:
•
Material weakness(es) identified?
Yes
X
No
•
Significant deficiency(ies) identified that are
not considered to be material weaknesses?
Yes
X
None reported
X
No
Type of auditor’s report issued on compliance
for major programs:
Unmodified
Any audit findings disclosed that are required to be
reported in accordance with Section 510(a)
Circular A-133 and/or Chapter 10.550?
Yes
Identification of major federal programs and state projects:
Federal Programs
CFDA Number
U.S. Department of Homeland Security:
Staffing for Adequate Fire and Emergency
Response – Hiring Program FEMA 2012
186
97.083
CITY OF FORT MYERS, FLORIDA
Schedule of Findings and Questioned Costs
Year Ended September 30, 2014
State Programs
CSFA Number
Florida Department of Environmental Protection:
Statewide Surface Water Restoration and Wastewater
Projects – Carrell Canal Water Quality Retrofit
37.039
Florida Housing Finance Corporation:
State Housing Initiatives Partnership Program
52.901
The threshold for distinguishing Type A programs was $300,000 for federal programs and $100,000 for
state projects.
•
Auditee qualified as low-risk auditee?
X
Yes
No
Section II - Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of
provisions of contracts and grant agreements, and abuse related to the financial statements that are
required to be reported in accordance with Government Auditing Standards.
There were no findings required to be reported in accordance with Government Auditing Standards.
Section III - Federal and State Award Findings and Questioned Costs
This section identifies the significant deficiencies, material weaknesses, and material instances of
noncompliance, including questioned costs, related to the audit of major federal programs or state
financial assistance projects, as required to be reported by OMB Circular A-133 and Chapter 10.550,
Rules of the Auditor General.
There were no findings required to be reported in accordance with OMB Circular A-133 and Chapter
10.550, Rules of the Auditor General – Local Governmental Entity Audits.
187
CITY OF FORT MYERS, FLORIDA
Summary Schedule of Prior Audit Findings
Year Ended September 30, 2014
Summary of Prior Year Audit Findings
There were no findings required to be reported in accordance with OMB Circular A-133 and Chapter
10.550, Rules of the Auditor General – Local Governmental Entity Audits.
188
Management Letter
Mayer Hoffman McCann P.C.
An Independent CPA Firm
13577 Feather Sound Drive, Suite 400  Clearwater, Florida 33762
Main: 727.572.1400  Fax: 727.571.1933  www.mhm-pc.com
Independent Auditor’s Management Letter
Honorable Mayor and City Council
City of Fort Myers
Fort Myers, Florida:
Report on the Financial Statements
We have audited the financial statements of the City of Fort Myers, Florida (the City) as of and for the
year ended September 30, 2014 and have issued our report thereon dated February 13, 2015.
Auditor’s Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States, OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Florida Auditor General.
Other Reports and Schedule
We have issued our Independent Auditor’s Report on Internal Control Over Financial Reporting and
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditor’s Report on Compliance for Each Major
Federal Program and State Project and Report on Internal Control Over Compliance; Schedule of
Findings and Questioned Costs; and Independent Accountant’s Report on an examination conducted in
accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in
accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule,
which are dated February 13, 2015, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
audit report. There were no findings and recommendations made in the preceding annual financial audit
report. .
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This information has been
disclosed in the notes to the financial statements.
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Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the City has met one or more of the conditions described in Section
218.503(1), Florida Statutes, and identification of the specific conditions met. In connection with our
audit, we determined that the City did not meet any of the conditions described in Section 218.503(1),
Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management’s responsibility to monitor the City’s financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of the financial information provided by same.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the City for the fiscal year ended September
30, 2014, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a),
Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended
September 30, 2014. In connection with our audit, we determined that these two reports were in
agreement.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but which warrants the attention of
those charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, the City Council, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
February 13, 2015
Clearwater, Florida
190
Mayer Hoffman McCann P.C.
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13577 Feather Sound Drive, Suite 400  Clearwater, Florida 33762
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Independent Accountant’s Report
Honorable Mayor and City Council
City of Fort Myers
Fort Myers, Florida:
We have examined the City of Fort Myers, Florida (the “City”)’s compliance with requirements set forth
in Section 218.415, Florida Statutes, during the year ended September 30, 2014. Management is
responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion
on the City’s compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence
supporting the City’s compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides a reasonable basis
for our opinion. Our examination does not provide a legal determination on the City’s compliance with
specified requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for the
year ended September 30, 2014.
February 13, 2015
Clearwater, Florida
191
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Downtown River District
The photo contained in the report was taken in the Fort Myers Downtown redevelopment district, also known as the River District. The current 2010 Downtown
Plan integrates the existing historic and cultural center with a strategy to develop
the neighboring riverfront. Phase I, the completion of the Downtown Detention
Basin, is the first step towards accomplishing that transformation.
Photo by Eloise Pennington, ITS Department
Copyright 2014, City of Fort Myers, Florida