CITY OF BOWLING GREEN, FLORIDA FINANCIAL STATEMENTS … rpts/2017 bowling green.pdf · and Transfers (100,595) Capital Contributions and Transfers Grant revenues and capital contributions

CITY OF BOWLING GREEN, FLORIDA

FINANCIAL STATEMENTS

AND SUPPLEMENTAL INFORMATION

SEPTEMBER 30, 2017

TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR’S REPORT 1 – 2 MANAGEMENT’S DISCUSSION AND ANALYSIS 3 - 8 BASIC FINANCIAL STATEMENTS: GOVERNMENT-WIDE FINANCIAL STATEMENTS: STATEMENT OF NET POSITION 9 STATEMENT OF ACTIVITIES 10 FUND FINANCIAL STATEMENTS: BALANCE SHEET – GOVERNMENTAL FUNDS 11 RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION 12 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 13 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 14 STATEMENT OF NET POSITION – PROPRIETARY FUND 15 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION – PROPRIETARY FUND 16 STATEMENT OF CASH FLOWS – PROPRIETARY FUND 17

NOTES TO FINANCIAL STATEMENTS 18 - 30 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND 31

CITY OF BOWLING GREEN, FLORIDA FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION

SEPTEMBER 30, 2017

TABLE OF CONTENTS - CONTINUED PAGE OTHER SUPPLEMENTAL INFORMATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – SPECIAL REVENUE FUND 32 DETAIL SCHEDULE OF REVENUE – BUDGET AND ACTUAL – GENERAL FUND 33 DETAIL SCHEDULE OF EXPENDITURES – BUDGET AND ACTUAL – GENERAL FUND 34 - 35 DETAIL SCHEDULE OF REVENUES AND EXPENSES – BUDGET AND ACTUAL - ENTERPRISE FUND – NON-GAAP BUDGETARY BASIS 36 DETAIL SCHEDULE OF EXPENSES – BUDGET AND ACTUAL – ENTERPRISE FUND – NON-GAAP BUDGETARY BASIS 37 - 38 DETAIL SCHEDULE OF EXPENSES BY DEPARTMENT – ENTERPRISE FUND – NON- GAAP BUDGET BASIS 39 OTHER REPORTS 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 40 - 41 MANAGEMENT LETTER 42 - 44 MANAGEMENT’S RESPONSE TO AUDIT FINDINGS 45 INDEPENDENT ACCOUNTANT’S REPORT ON INVESTMENT COMPLIANCE 46

CITY OF BOWLING GREEN, FLORIDA FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION

SEPTEMBER 30, 2017

City of Bowling Green, Florida Principal City Officials

September 30, 2017

CITY COMMISSION

ROBERT S. FITE, MAYOR STEVEN SPINKS, VICE MAYOR

DAVID DURASTANTI CLIFF LUNN

MARY ALICE TUCKER

CITY OFFICIALS JERRY CONERLY, CITY MANAGER

CARMEN SILVA, CITY CLERK GERALD BUHR, CITY ATTORNEY

CITY OF BOWLING GREEN, FLORIDA OFFICIALS

SEPTEMBER 30, 2017

Governmental Business-typeActivities Activities Total

ASSETSCash and cash equivalents 271,750$ 515,245$ 786,995$ Certificates of deposit 493,401 - 493,401 Receivables (net of allowance for uncollectibles) 29,752 76,682 106,434 Grants receivable - 23,563 23,563 Due from other governmental units 60,835 - 60,835 Inventory - 4,780 4,780 Restricted:

Cash 46,799 90,939 137,738 Certificates of deposit - 156,911 156,911

Capital Assets (net of accumulated depreciation):Land 490,229 31,894 522,123 Construction in progress 16,090 2,349,928 2,366,018 Buildings and improvements 184,483 3,189,075 3,373,558 Machinery and equipment 119,413 117,807 237,220 Infrastructure 168,490 - 168,490

TOTAL ASSETS 1,881,242 6,556,824 8,438,066

LIABILITIES Accounts payable 23,044 80,487 103,531 Accrued expenses 8,015 4,460 12,475 Accrued interest payable - 2,994 2,994 Liabilities payable from restricted assets - 92,718 92,718 Noncurrent liabilities:

Due within one year - 45,106 45,106 Due in more than one year - 930,918 930,918

Total liabilities 31,059 1,156,683 1,187,742

NET POSITIONNet investment in capital assets 978,705 4,712,680 5,691,385 Restricted

Revenue bond retirement - 155,132 155,132 Other purposes 56,326 - 56,326

Unrestricted 815,152 532,329 1,347,481 TOTAL NET POSITION 1,850,183$ 5,400,141$ 7,250,324$

The accompanying notes are an integral part of these financial statements.

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CITY OF BOWLING GREEN, FLORIDASTATEMENT OF NET POSITION

SEPTEMBER 30, 2017

STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2017

Operating Capital Charges for Grants and Grants and Governmental Business -type

Expenses Services Contributions Contributions Activities Activities Total

General government 309,247$ 64,692$ -$ -$ (244,555)$ -$ (244,555)$ Police department 485,517 54,111 - - (431,406) - (431,406) Culture and recreation 82,210 - - 39,100 (43,110) - (43,110) Physical environment 312,556 19,151 - - (293,405) - (293,405)

Total Governmental Activities 1,189,530 137,954 - 39,100 (1,012,476) - (1,012,476)

Water 388,849 340,628 - - - (48,221) (48,221) Sewer 459,001 408,962 - 686,861 - 636,822 636,822 Sanitation 305,087 279,537 - - - (25,550) (25,550)

Total Business-type Activities 1,152,937 1,029,127 - 686,861 - 563,051 563,051 2,342,467$ 1,167,081$ -$ 725,961$ (1,012,476) 563,051 (449,425)

General Revenues:Ad valorem 238,180 - 238,180 Utility tax 140,263 - 140,263 Communications service 28,104 - 28,104 Gas taxes and rebates 52,385 - 52,385 State revenue sharing 177,585 - 177,585 Half-cent sales tax 84,382 - 84,382 One-cent surtax 184,021 - 184,021 Unrestricted investment earnings 3,449 2,283 5,732 Franchise fees 84,552 - 84,552 Other 19,956 20,932 40,888

Total General Revenues 1,012,877 23,215 1,036,092 Transfers 40,000 (40,000) -

Total General Revenues and Transfers 1,052,877 (16,785) 1,036,092

Change in Net Position 40,401 546,266 586,667

Net Position - Beginning 1,809,782 4,853,875 6,663,657 Net Position - Ending 1,850,183$ 5,400,141$ 7,250,324$


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Program Revenues Net (Expenses) Revenue and Changes in Net Position


Special TotalGeneral Revenue Fund Governmental

Fund (Nonmajor) Funds ASSETSCash 262,223$ 9,527$ 271,750$ Certificates of deposit 493,401 - 493,401 Receivables (net of allowance for uncollectible) 29,752 - 29,752 Due from other governmental units 60,835 - 60,835 Cash - restricted 46,799 - 46,799

Total assets 893,010$ 9,527$ 902,537$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCESLiabilities:

Accounts payable 23,044$ -$ 23,044$ Accrued expenses 8,015 - 8,015

Total liabilities 31,059 - 31,059

Deferred inflows of resources:Unavailable revenue 14,400 - 14,400

Fund balances:Spendable: Restricted 46,799 9,527 56,326 Unassigned 800,752 - 800,752

Total fund balances 847,551 9,527 857,078 Total liabilities, deferred inflows of resources and fund balances 893,010$ 9,527$ 902,537$

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CITY OF BOWLING GREEN, FLORIDABALANCE SHEET

GOVERNMENTAL FUNDSSEPTEMBER 30, 2017

Amounts reported for governmental activities in the statement of net position are different because:

Fund Balance-Governmental funds 857,078$

Capital assets used in governmental activities are not financialresources and, therefore, are not reported in the funds. 978,705

Deferred inflows of resources are not available current financialresources and, therefore, are not reported in the funds. 14,400

NET POSITION OF GOVERNMENTAL ACTIVITIES 1,850,183$


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CITY OF BOWLING GREEN, FLORIDARECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITIONSEPTEMBER 30, 2017

Special TotalGeneral Revenue Fund Governmental

Fund (Nonmajor) FundsRevenues:

Taxes 446,327$ 9,852$ 456,179$ Fines and forfeitures 54,111 - 54,111 Intergovernmental revenue 448,741 - 448,741 Franchise fees 84,552 - 84,552 Licenses and permits 4,095 - 4,095 Grants 24,700 - 24,700 Interest 3,446 3 3,449 Miscellaneous 99,704 - 99,704

Total Revenues 1,165,676 9,855 1,175,531

Expenditures:General government 298,031 - 298,031 Public safety 450,934 - 450,934 Culture and recreation 59,859 328 60,187 Physical environment 289,722 - 289,722 Capital outlay 67,135 - 67,135

Total Expenditures 1,165,681 328 1,166,009

Excess of Revenues (Under) Over Expenditures Before Other Financing Sources (Uses) (5) 9,527 9,522

OTHER FINANCING SOURCES (USES)Transfers In (Out) 40,000 - 40,000

Total Other Financing Sources (Uses) 40,000 - 40,000

Net Change in Fund Balance 39,995 9,527 49,522

FUND BALANCE, October 1, 2016 807,556 - 807,556

FUND BALANCE, September 30, 2017 847,551$ 9,527$ 857,078$


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CITY OF BOWLING GREEN, FLORIDASTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2017

Amounts reported for governmental activities in the statement of activities are different because:

Net changes in fund balances - Governmental funds 49,522$

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 and reported as depreciation expense. This is the amount by which capital outlay additions in the current yearwere exceeded by depreciation expense and a loss on disposal ofcapital assets.

Capital outlay 67,135Loss on disposal of capital assets (792) Depreciation (89,864)

(23,521)

Revenues in the statement of activities that do not provide current financial resources as they do not meet the availability criteria are not reported as revenues in the funds. This amount represents thechange in unavailable revenue. 14,400

CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 40,401$


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CITY OF BOWLING GREEN, FLORIDARECONCILIATION OF THE STATEMENT OF REVENUES

EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED SEPTEMBER 30, 2017

Business-TypeActivitiesEnterprise

ASSETS FundCurrent Assets:

Cash 515,245$ Accounts receivable, net 76,682 Grants receivable 23,563 Inventory 4,780

Total current assets 620,270 Non-current Assets:

Restricted assets: Cash 90,939 Certificates of deposit 156,911

Total restricted assets 247,850 Capital Assets:

Land 31,894 Construction in progress 2,349,928 Buildings and improvements 7,650,009 Machinery and equipment 591,238 Accumulated depreciation (4,934,365)

Total capital assets (net) 5,688,704 Total non-current assets 5,936,554

TOTAL ASSETS 6,556,824

LIABILITIES Current Liabilities:

Accounts payable 80,487 Accrued expenses 4,460

Total current liabilities 84,947 Current Liabilities Payable from Restricted Assets:

Accrued interest payable 2,994 Customer deposits 92,718 Current portion - long term debt 45,106

Total current liabilities payable from restricted assets 140,818 Non-current Liabilities:

Notes payable 296,818 Revenue bonds payable 634,100

Total noncurrent liabilities 930,918 TOTAL LIABILITIES 1,156,683

NET POSITIONNet investment in capital assets 4,712,680 Restricted 155,132 Unrestricted 532,329

TOTAL NET POSITION 5,400,141$

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CITY OF BOWLING GREEN, FLORIDASTATEMENT OF NET POSITION - PROPRIETARY FUND

SEPTEMBER 30, 2017



FundOperating Revenues:

Charges for sales and services:Water charges 340,628$ Sewer charges 408,962 Sanitation charges 279,537 Penalties, late fees and miscellaneous 20,932

Total Operating Revenues 1,050,059

Operating Expenses:Cost of sales and services:

Personal services 298,400 Other operating expenses 567,138Depreciation and amortization 251,578

Total Operating Expenses 1,117,116

Operating Income (Loss) (67,057)

Non-Operating Revenues (Expenses)Interest income 2,283Interest expense (35,821)

Total Non-Operating Revenue (Expenses) (33,538)

Income (Loss) Before Capital Contributionsand Transfers (100,595)

Capital Contributions and TransfersGrant revenues and capital contributions 686,861Transfers out (40,000)

Total Capital Contributions and Transfers 646,861

Change in Net Position 546,266

NET POSITION - Beginning 4,853,875

NET POSITION - Ending 5,400,141$

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CITY OF BOWLING GREEN, FLORIDASTATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2017


FundCASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 1,045,180$ Cash payments to suppliers (673,524) Cash payments to employees (298,400)

Net cash provided (used) by operating activities 73,256

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Transfers in/advances from other funds (40,000)

Net cash provided (used) by noncapital financing activities (40,000)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Interest paid on revenue borrowings and long-term debt borrowings (35,821) Proceeds of issuance of long-term debt 111,197 Principal payments on long-term debt (39,416) Capital grant proceeds 812,978 Capital expenditures (856,076)

Net cash provided (used) by capital and related financing activities (7,138)

CASH FLOWS FROM INVESTING ACTIVITIES:Interest on investments 2,283 Increase in investments (1,502)

Net cash provided (used) by investing activities 781

NET INCREASE (DECREASE) IN CASH 26,899

CASH AT BEGINNING OF YEAR 579,285

CASH AT END OF YEAR 606,184$

CashUnrestricted 515,245$ Restricted 90,939

606,184$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASHPROVIDED (USED) BY OPERATING ACTIVITIES:

Operating Income (Loss) (67,057)$ Adjustments to reconcile operating income (loss) to net cash

provided (used) by operating activities:Depreciation and amortization 251,578

Change in assets and liabilities:(Increase) decrease in accounts receivable (8,119) Increase (decrease) in accounts payable (106,386) Increase (decrease) in customer deposits payable 3,240

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 73,256$

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CITY OF BOWLING GREEN, FLORIDASTATEMENT OF CASH FLOWS - PROPRIETARY FUND



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. REPORTING ENTITY The City of Bowling Green (City) was incorporated in 1927 under the laws of Florida

Chapter 12563-(758) and as amended in 1935 under the Laws of Florida Chapter 17496-(725). The present charter calls for a five-member City Commission, one of whom is elected Mayor by the Commission. The City is managed by a City Manager appointed by the Commission. Under the present charter, the City has the power to impose license taxes on occupations, to levy taxes on City property, and to levy charges for services as required for the improvement and government of the City. Services authorized to be provided under the present charter are as follows: public safety, streets and roads, sanitation, water and sewer, health and social services, culture and recreation, public improvements, planning and zoning, and general administrative services. The City does not have any discretely presented component units.

During the 2016 fiscal year, the City established the City of Bowling Green

Community Redevelopment Agency (CRA), which is comprised of a five member Board of Commissioners. The CRA is presented as a special revenue fund within the City’s financial statements because: 1) the CRA substantively operates under the same body as the City through the City Commission which meets separately as the CRA’s governing body to approve the adoption of their annual budget, the transactions of real property, and the execution of contracts and modifications to the community redevelopment plans; 2) the City Commission/CRA Board has operational responsibility of the CRA; and 3) the CRA provides an exclusive service or benefit to the City and its citizens. The CRA is responsible for carrying out the rehabilitation, conservation and redevelopment of the Community Redevelopment Plan. The related tax increment revenue is included in this Special Revenue Fund., all of which is restricted for the CRA.

B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position and

the statement of activities) report information on all of the activities of the City. For the most part, the effect of interfund activity has been removed from these 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.

The statement of activities demonstrates the degree to which the direct expenses of

a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items properly not included among program revenues are reported instead as general revenues.

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CITY OF BOWLING GREEN, FLORIDA NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS - CONTINUED Separate financial statements are provided for the governmental funds (General

Fund and Special Revenue Fund) and the proprietary fund. The general fund and the enterprise fund are considered major funds and are presented as separate columns in the fund financial statements. The special revenue fund is reported as a non-major fund.

C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT

PRESENTATION The government-wide financial statements are reported using the economic

resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Government-wide financial statements include a Statement of Net Position and a Statement of Activities. The Statement of Net Position reports all financial and capital resources of the City’s governmental activities. It is presented in a net position format (assets and deferred outflows less liabilities and deferred inflows equal net position) and shown with three components: net investment in capital assets, restricted net position and unrestricted net position. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial

resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government 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.

Property taxes, franchise taxes, licenses, and interest associated with the current

fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

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SEPTEMBER 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT

PRESENTATION - CONTINUED The government reports the following governmental funds:

General Fund

The general fund is the City’s general operating fund. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. From this fund, expenditures paid include general operating expenditures, fixed charges, and capital improvement costs not paid through other funds.

Special Revenue Fund

The CRA is the City’s only special revenue fund. It accounts for the rehabilitation,

conservation and redevelopment of certain slum or blighted areas of the City, included within the community redevelopment area. Financing is provided primarily through tax increment funding from the City and Hardee County. All amounts within this fund are restricted to CRA activities.

The government reports the following proprietary fund: Enterprise Fund The enterprise fund accounts for the operation of the City’s water and sewer

system, as well as sanitation services. As a general rule, the effect of interfund activity has been eliminated from the

government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s water and sewer fund and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Proprietary funds distinguish operating revenues and expenses from nonoperating

items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise fund are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for the enterprise fund 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.

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SEPTEMBER 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED D. CASH AND INVESTMENTS

Florida Statute 218.415 authorizes the City to invest surplus funds in the following: (a) The Local Government Surplus Funds Trust Fund or any intergovernmental

investment pool authorized pursuant to the Florida Interlocal Cooperation Act as provided in Section 163.01, Florida Statutes.

(b) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

(c) Interest bearing time deposits or savings accounts in state-certified Qualified Public Depositories as defined in Section 280.02, Florida Statutes.

(d) Direct obligations of the U.S. Treasury.

All City bank accounts and certificates of deposit are with banking institutions that post collateral as required by state statutes (Qualified Public Depositories). As a result, all amounts which exceed FDIC insured limits are collateralized pursuant to Chapter 280 of the Florida statutes. The City does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. However, at September 30, 2017 the City only had demand deposits and time deposits.

E. RECEIVABLES AND PAYABLES Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable, available financial resources. All trade receivables are shown net of allowance for doubtful accounts.

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SEPTEMBER 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

F. PROPERTY TAXES Property taxes become due and payable on November 1st of each year. The county tax collector remits the City's portion as such revenues are received. The City collects nearly all of its tax revenue during the period November 1 through April 1, at which time the property taxes become delinquent. The key dates in the property tax cycle are as follows:

Assessment roll validated July 1

Millage resolution approved September 30 Beginning of fiscal year for which taxes have been levied October 1 Tax bills rendered and due November 1 Property taxes payable: Maximum discount November 30 Delinquent April 1 Tax certificates sold May 31

Property taxes are recognized as revenue in the fiscal year for which the taxes have

been levied to the extent they result in current receivables. Under the system outlined above, no material amount of taxes is receivable after the end of the fiscal year.

G. RESTRICTED ASSETS

The following represent restricted resources of each fund:

General Fund

Cash in the General Fund is reserved for the following: Police Department $ 929 Community Center improvements 45,870 $ 46,799

Enterprise Fund Restricted assets, provided for by ordinances adopted by the City for the issuance of the Sewer System Bonds and customer deposits are as follows: Customer deposits $ 92,718 Revenue bond retirement 71,166 Other debt retirement 1,109 Impact fees 82,857 Restricted assets $ 247,850

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SEPTEMBER 30, 2017


H. CAPITAL ASSETS

Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $500 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The City has elected to report general infrastructure assets on a prospective basis only. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are expensed as incurred. Property, plant, and equipment is depreciated using the straight line method over the following estimated useful lives:

Assets Years Buildings and improvements 10 – 40 Infrastructure 20 Machinery and equipment 4 - 10

I. COMPENSATED ABSENCES

The City personnel policy provides for the payment of accrued vacation upon separation from its employees. A liability for this amount is recorded in the government-wide and proprietary fund financial statements. A liability for this amount is recorded in the governmental funds only if it has matured. The City also provides sick pay, which is not payable upon separation from the City and is not recorded as a liability. Compensated absences are liquidated out of both funds as applicable.

J. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.

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SEPTEMBER 30, 2017


J. LONG-TERM OBLIGATIONS - CONTINUED Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures in the year the debt is issued in both the government-wide and fund financial statements.

K. NET POSITION Net position is reported in three parts as applicable: net investment in capital assets, restricted and unrestricted. When both restricted and unrestricted resources are available, restricted resources are used first, and then unrestricted resources, as they are needed.

L. FUND BALANCE

The City follows Governmental Accounting Standards Board (GASB) Statement No. 54 which established fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications are Nonspendable and Spendable. Spendable is then further classified as Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of funds, but also provide clarity to the level of restriction placed upon fund balance. Fund balance can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. The City classified governmental fund balance as follows: Nonspendable – includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual requirements. Spendable Fund Balance:

Restricted – includes amounts that can be spent only for specific purposes because of State or Federal laws or enabling legislation, or which are externally restricted by providers, such as creditors or grantors.

Committed – includes amounts that can be spent only for specific purposes

that are approved by a formal action of the City Commission through a resolution or the budget process.

Assigned – includes amounts designated for a specific purpose by the City

Commission through a resolution or the budget process, which are neither restricted or committed.

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SEPTEMBER 30, 2017


L. FUND BALANCE - CONTINUED

Unassigned – includes residual positive fund balance within the General Fund that has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes.

The City uses restricted amounts first when both restricted and unrestricted fund balance is available, unless there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City does not have a formal minimum fund balance policy. Special General Revenue Fund Fund Spendable: Restricted to: Confiscated fund – Police Department $ 929 $ -0- Community Center improvements 45,870 -0- Community Redevelopment Agency -0- 9,527 46,799 9,527 Unassigned 800,752 -0- Total Fund Balances $ 847,551 $ 9,527 The entire fund balance of the Special Revenue Fund of $9,527 is restricted for the purposes of alleviating slum and blight in the City in accordance with Florida Statute 163.

M. INVENTORIES

Inventories are stated at the lower of cost or market as determined on the first in, first out method.

N. CASH AND CASH EQUIVALENTS

For purposes of the statement of cash flows, all highly liquid debt instruments purchased with a maturity of three months or less are considered cash.

O. ESTIMATES

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect 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 expenses during the reporting period. Actual results could differ from those estimates.

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SEPTEMBER 30, 2017


P. BUDGETARY INFORMATION

Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for the governmental funds. Expenditures should not exceed total appropriations. All annual appropriations lapse at fiscal year end. Any required budget amendments have to be approved by the City Commissioners through resolutions.

Q. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES

In addition to liabilities, the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows or resources, represents an acquisition of fund balance 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 one item that qualifies for reporting in this category. On the governmental funds balance sheet, unavailable revenue is reclassified as deferred inflows of resources. This represents funds which did not meet the availability criteria under the modified accrual basis of accounting and therefore are considered to be deferred charges until available.

NOTE 2 - DETAILED NOTES ON ALL FUNDS

A. Cash and Investments At September 30, 2017, the City’s carrying amount of cash and cash equivalents was $924,733 and the bank balance was $1,015,319. The City had certificates of deposit classified as investments in the amount of $650,312. B. Receivables Receivables as of September 30, 2017 for the government’s funds in the aggregate, including the applicable allowance for uncollectible accounts, are as follows:

General Enterprise Receivables Fund Fund Accounts receivable $ 29,752 $ 98,682 Less: allowance for uncollectibles -0- 22,000 Net total accounts receivables $ 29,752 $ 76,682

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SEPTEMBER 30, 2017

NOTE 2 - DETAILED NOTES ON ALL FUNDS - CONTINUED

C. Capital Assets Capital asset activity for the year ended September 30, 2017 was as follows:

Beginning Ending Balance Increases Decreases Transfers Balance Governmental Activities: Capital assets, not being depreciated: Land $ 480,866 $ 9,363 $ -0- $ -0- $ 490,229 Construction in progress 6,510 9,580 -0- -0- 16,090 Total capital assets, not being depreciated 487,376 18,943 -0- -0- 506,319 Capital assets, being depreciated: Buildings and improvements 600,520 798 -0- -0- 601,318 Infrastructure 248,848 -0- -0- -0- 248,848 Machinery and equipment 577,818 47,394 (62,012) -0- 563,200 Total capital assets being depreciated 1,427,186 48,192 (62,012) -0- 1,413,366 Less accumulated depreciation for: Buildings and improvements (387,767) (29,068) -0- -0- (416,835) Machinery and equipment (461,411) (43,596) 61,220 -0- (443,787) Infrastructure (63,158) (17,200) -0- -0- (80,358) Total accumulated depreciation (912,336) (89,864) 61,220 -0- (940,980) Total capital assets, being depreciated, net 514,850 (41,672) (792) -0- 472,386 Governmental activities capital assets, net $ 1,002,226 $ (22,729) $ (792) $ -0- $ 978,705 Business-type activities: Capital assets, not being depreciated: Land $ 31,894 $ -0- $ -0- $ -0- $ 31,894 Construction in progress 1,535,718 814,210 -0- -0- 2,349,928 Total capital assets, not being depreciated 1,567,612 814,210 -0- -0- 2,381,822 Capital assets, being depreciated: Buildings and improvements 7,650,009 -0- -0- -0- 7,650,009 Machinery and equipment 555,552 41,866 (6,180) -0- 591,238 Total capital assets being depreciated 8,205,561 41,866 (6,180) -0- 8,241,247 Less accumulated depreciation for: Buildings and improvements (4,249,824) (211,110) -0- -0- (4,460,934) Machinery and equipment (439,143) (40,468) 6,180 -0- (473,431) Total accumulated depreciation (4,688,967) (251,578) 6,180 -0- (4,934,365) Total capital assets, being depreciated, net 3,516,594 (209,712) -0- -0- 3,306,882 Business-type activities capital assets, net $ 5,084,206 $ 604,498 $ -0- $ -0- $ 5,688,704

Depreciation expense was charged to functions/programs of the government as follows: Governmental activities:

General government $ 10,424 Physical environment 22,834 Public safety 34,583 Culture and recreation 22,023

$ 89,864 Business-type activities: Water, sewer and sanitation $ 251,578

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SEPTEMBER 30, 2017


D. Interfund receivables, payables, and transfers

The City transfers resources from the Enterprise Fund to the General Fund to cover expenses paid from the General Fund that relate to the Enterprise Fund. There were no interfund balances as of September 30, 2017. Interfund transfers during the year totaled $40,000. Revenue Bonds – Business-type Activities In 1984, 1993, 1995 and 1999, the City passed bond ordinances to provide for the issuance of Water and Sewer Revenue Certificates. At September 30, 2017, bonds outstanding are as follows:

E. Long-Term Debt

Revenue Bonds – Business-type Activities - Continued

Ordinance Issue Maturity Interest Original Balance Year Date Date Rate Issue Outstanding

1984 06/11/85 09/01/2024 5.0% 257,000 $ 88,400 1993 09/01/94 09/01/2033 4.5% 300,000 186,000 1995 09/13/95 09/01/2035 4.5% 400,000 269,000 1999 02/10/99 09/01/2038 4.5% 167,000 123,000

TOTAL $ 666,400

Notes Payable – Business-type Activities

The City entered into a loan and grant agreement with the Florida Department of Environmental Protection through the State Revolving Fund. The total amount initially borrowed was $144,456, at an interest rate of 0.92%, with interest and principal to be paid in 40 semi-annual payments beginning March 15, 2015. The total amount outstanding at September 30, 2017 is $134,827. During 2014, the City borrowed an additional $61,010 with an interest rate of 1.19%. The debt obligation is secured by a pledge of the net revenues of the water and sewer systems. During 2015, the City entered into another loan and grant agreement with the Florida Department of Environmental Protection through the State Revolving Fund. The initial approved amount of the agreement is for $1,187,750, of which $833,451 will be forgiven through the grant portion of the agreement. In 2016, the agreement was amended to reduce the approved amount to $871,777 of which $803,571 will be forgiven. The total amount borrowed as of September 30, 2017 was $64,197, at an interest rate of 1.15%. The principal borrowed is required to be paid over 40 semi-annual payments beginning May 15, 2017. The debt obligation is secured by a pledge of the net revenues of the water and sewer system.

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SEPTEMBER 30, 2017


E. Long-Term Debt - Continued During fiscal year 2017, the City entered into a third loan and grant agreement with the Florida Department of Environmental Protection through the State Revolving Fund. The initial approved amount of the agreement is for $553,000, of which $442,400 will be forgiven through the grant portion of the agreement. The total amount borrowed as of September 30, 2017 was $110,600, at an interest rate of 0.47%. The principal borrowed is required to be paid over 40 semi-annual payments beginning July 1, 2018. The debt obligation is secured by a pledge of the net revenues of the water and sewer system. Total annual debt service requirements for all outstanding business-type activities and enterprise fund debt obligations as of September 30, 2017 are as follows:

Year Ending September 30, Principal Interest Total

2018 $ 45,106 $ 34,322 $ 79,428 2019 51,022 32,849 83,871 2020 51,753 31,001 82,754 2021 52,986 29,124 82,110 2022 55,720 27,191 82,911 2023 – 2027 260,055 105,734 365,789 2028 – 2032 272,702 60,840 333,542 2033 – 2037 177,781 15,062 192,843 2038 8,899 307 9,206 Total $ 976,024 $ 336,430 $ 1,312,454

Changes in long-term liabilities Long–term liability activity for the year ended September 30, 2017, was as follows:

Beginning Ending Due Within Balance Additions Reductions Balance One Year Business-type activities: Debt obligations: Notes payable WW250202 $ 142,443 $ -0- $ (7,616) $ 134,827 $ 7,341 WW250204 63,600 597 -0- 64,197 3,017 WW250230 -0- 110,600 -0- 110,600 2,448 Total notes payable 206,043 111,197 (7,616) 309,624 12,806 Revenue bonds 1984 98,700 -0- (10,300) 88,400 10,800 1993 194,000 -0- (8,000) 186,000 8,000 1995 279,000 -0- (10,000) 269,000 10,000 1999 126,500 -0- (3,500) 123,000 3,500 Total revenue bonds 698,200 -0- (31,800) 666,400 32,300 Long-term liabilities $ 904,243 $ 111,197 $ (39,416) $ 976,024 $ 45,106

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SEPTEMBER 30, 2017


E. Long-Term Debt - Continued In the Statement of Activities, interest expense of $12,555 is included in Water and $23,266 is included in Sewer.

NOTE 3 - EMPLOYEE BENEFIT PLAN The City adopted a defined contribution retirement plan, effective January 1, 1992 for all full-time employees over 21 years of age and twelve months of service with at least 1,000 service hours during the eligibility period. The name of the Plan is the City of Bowling Green Retirement Plan and the plan is administered by the Variable Annuity Life Insurance Company (VALIC), which is also the Trustee. The City Commission may amend the plan by giving the trustee written notification of such Amendments as adopted. Benefit terms, including contribution requirements, for the Plan are established and may be amended by the City’s Commission. City contributions to the plan are not fixed or guaranteed. During the year ended September 30, 2017, for each employee in the pension plan, the City contributed 3 percent of total annual salary, including overtime pay, to an individual employee account. The plan requires employees hired after October 1, 2015 to contribute 3 percent of total annual salary and allows employees hired prior to October 1, 2015 to choose to contribute either 2 or 3 percent. In addition to the required contributions, employees are permitted to make contributions to the pension plan up to applicable Internal Revenue Code limits. For the year ended September 30, 2017, employee contributions totaled $15,477 and City contributions totaled $13,718. Employees hired prior to October 1, 1997 become vested in the plan at 20% after two years of service with 100% vesting after six years of service for employees. For participants hired on or after October 1, 1997, vesting is 100% after ten years of service. Employees may also become 100% vested at retirement age (sixty-five) or in case of disability or death. Non-vested City contributions are forfeited upon termination of employment. Such forfeitures are used to cover a portion of the pension plan’s administrative expenses. For the year ended September 30, 2017, the City did not apply any available forfeitures towards the City’s pension expense.

NOTE 4 - RISK MANAGEMENT

The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the City carries commercial insurance. There has been no significant reduction in coverage from the prior year. The City has not experienced any settlements in excess of coverage over the past three years.

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SEPTEMBER 30, 2017

REQUIRED SUPPLEMENTARY INFORMATION

Original Final Variance fromBudget Budget Actual Final Budget

REVENUESTaxes 439,078$ 439,078$ 446,327$ 7,249$ Fines and forfeitures 34,000 34,000 54,111 20,111 Intergovernmental revenue 435,747 435,747 448,741 12,994 Franchise fees 92,206 92,206 84,552 (7,654) Licenses and permits 4,500 4,500 4,095 (405) Grants 334,500 334,500 24,700 (309,800) Interest 500 500 3,446 2,946 Miscellaneous 98,676 98,676 99,704 1,028

Total Revenues 1,439,207 1,439,207 1,165,676 (273,531)

EXPENDITURESGeneral government 289,740 289,740 309,606 (19,866) Public safety 512,787 512,787 488,046 24,741 Culture and recreation 381,865 381,865 69,439 312,426 Physical environment 294,815 318,743 298,590 20,153

Total Expenditures 1,479,207 1,503,135 1,165,681 337,454

Transfer from other fund 40,000 63,928 40,000 (23,928)

Net Change in Fund Balances - - 39,995 39,995

Fund Balance, October 1, 2016 807,556 807,556 807,556 -

Fund Balance, September 30, 2017 807,556$ 807,556$ 847,551$ 39,995$

Note 1-Budget BasisThe general fund budget is presented on a basis consistent with U.S. generally accepted accounting principles.


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CITY OF BOWLING GREEN, FLORIDAGENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL

OTHER SUPPLEMENTAL INFORMATION

Original Final Variance fromBudget Budget Actual Final Budget

REVENUESTaxes 9,852$ 9,852$ 9,852$ -$ Grants 500,000 500,000 - (500,000) Interest - - 3 3

Total Revenues 509,852 509,852 9,855 (499,997)

EXPENDITURESCulture and recreation 500,000 500,000 328 499,672

Total Expenditures 500,000 500,000 328 499,672

Net Change in Fund Balances 9,852 9,852 9,527 (325)

Fund Balance, October 1, 2016 - - - -

Fund Balance, September 30, 2017 9,852$ 9,852$ 9,527$ (325)$

Note 1-Budget BasisThe special revenue fund budget is presented on a basis consistent with U.S. generally accepted accounting principles.

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CITY OF BOWLING GREEN, FLORIDASPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL


FinalBudget Actual Variance

Ad Valorem taxes 218,917 228,328 9,411 Fuel taxes 4,000 10,739 6,739 Utility taxes 137,088 140,263 3,175 Gas taxes 38,767 38,893 126 Communications service tax 40,306 28,104 (12,202) Franchise fees 92,206 84,552 (7,654) Occupational licenses 3,500 3,435 (65) State revenue sharing 170,531 177,585 7,054 Mobile home license 800 506 (294) State beverage license 200 154 (46) 1/2 Cent sales tax 84,192 84,382 190 1 Cent surtax 179,024 184,021 4,997 State gas tax rebate 2,000 2,753 753 Grants 334,500 24,700 (309,800) Fines and forfeitures 34,000 54,111 20,111 Interest income 500 3,446 2,946 Rents 61,000 61,257 257 Miscellaneous revenue 20,000 19,296 (704) Cemetery income 6,000 7,475 1,475 D.O.T. traffic signal maintenance 3,757 3,757 - D.O.T. highway lighting 7,919 7,919 -

Total Revenues 1,439,207 1,165,676 (273,531)

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YEAR ENDED SEPTEMBER 30, 2017

GENERAL FUNDDETAIL SCHEDULE OF REVENUE

BUDGET AND ACTUAL


Legislative & ExecutiveSalaries 15,600$ 15,600$ -$

Total Legislative & Executive 15,600 15,600 -

AdministrativeAdministrative salaries 134,627 129,835 4,792 Payroll tax 10,299 10,779 (480) Employee insurance 17,609 22,791 (5,182) Retirement contributions 4,038 4,123 (85) Workers compensation 2,937 4,118 (1,181) Uniforms 900 893 7 Operating supplies 600 635 (35) Professional fees 28,520 38,409 (9,889) Telephone 3,000 2,903 97 Utilities 5,000 5,506 (506) Other insurance 5,860 5,340 520 Repairs and maintenance 14,000 16,929 (2,929) Building improvements 5,000 2,830 2,170 Miscellaneous expense 11,000 13,140 (2,140) Office supplies 3,000 2,326 674 Gas and oil 1,400 1,666 (266) Comprehensive plan 5,800 4,350 1,450 Lease/rent 6,000 1,579 4,421 Dues and subscriptions 1,250 1,200 50 Advertising 3,000 4,886 (1,886) Training 5,000 5,327 (327) New equipment 4,500 13,804 (9,304) Shipping and postage 800 637 163

Total Administrative 274,140 294,006 (19,866)

Law EnforcementSalaries 319,621 311,271 8,350 Payroll taxes 24,451 22,443 2,008 Employee insurance 49,350 40,323 9,027 Retirement contributions 9,589 7,811 1,778 Workers compensation 6,853 4,118 2,735 Uniforms 5,000 6,837 (1,837) Telephone 6,000 6,840 (840) Utilities 2,000 1,533 467 Insurance 5,860 5,340 520 Repairs and maintenance 12,000 11,400 600 Miscellaneous expense 3,000 1,798 1,202 Building improvement - 729 (729) Professional fees 2,563 2,916 (353) Office supplies 2,000 2,406 (406) Contract Labor 3,000 1,209 1,791 Investigation funds 500 281 219 Gas and oil 17,000 19,125 (2,125) Operating supplies 3,000 3,485 (485) Shipping and postage 500 283 217 New equipment 40,000 37,761 2,239 Training 500 137 363

Total Law Enforcement 512,787 488,046 24,741

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DETAIL SCHEDULE OF EXPENDITURESBUDGET AND ACTUAL



Recreation Contribution to recreation center 8,000$ 8,000$ -$ Grant expenditures 150,000 14,400 135,600 Contract labor 25,000 24,700 300 Utilities 3,000 4,286 (1,286) Repairs and maintenance 15,000 1,834 13,166 Miscellaneous expense 16,365 5,612 10,753 Community center 158,500 - 158,500 Operating supplies 1,000 252 748 New equipment & grants 5,000 10,355 (5,355)

Total Recreation 381,865 69,439 312,426

Physical EnvironmentP/E salaries 114,176 93,394 20,782 FICA tax 8,734 6,497 2,237 Employee insurance 24,659 21,152 3,507 Retirement contributions 3,425 1,904 1,521 Workers compensation 3,916 4,118 (202) Uniforms 900 1,144 (244) Other insurance 5,860 5,340 520 Repairs & maintenance 18,770 16,060 2,710 Miscellaneous expense 1,000 4,294 (3,294) Gas & oil 10,000 15,664 (5,664) Operating supplies 3,000 3,291 (291) Dog pound 4,000 2,818 1,182 New equipment 25,000 11,765 13,235 Streets & roads 55,565 71,455 (15,890) Utilities 38,688 38,985 (297) Shipping and postage 50 - 50 Office supplies 1,000 709 291 Total Physical Environment 318,743 298,590 20,153

Total Expenditures 1,503,135$ 1,165,681$ 337,454$

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DETAIL SCHEDULE OF EXPENDITURESBUDGET AND ACTUAL


Operating RevenuesWater charges 345,042$ 340,628$ (4,414)$ Sewer charges 408,953 408,962 9 Sanitation charges 275,134 279,537 4,403 Penalties, late fees and miscellaneous 20,200 20,932 732

Total Operating Revenues 1,049,329 1,050,059 730

Operating ExpensesWater Department 333,446 285,888 47,558 Sewer Department 281,014 279,879 1,135 Sanitation Department 270,051 299,771 (29,720)

Total Operating Expenses 884,511 865,538 18,973

Non-Operating Revenues (Expenses)Interest income 500 2,283 1,783 Principal and interest expense (77,339) (75,237) 2,102

Total Non-Operating Revenues(Expenses) (76,839) (72,954) 3,885

Capital Contributions and TransfersGrant revenue 1,774,240 686,861 (1,087,379) Grant expense (1,822,219) (804,640) 1,017,579 Transfers Out (40,000) (40,000) -

Total Capital Contributions and Transfers (87,979) (157,779) (69,800)

Change in Net Position -$ (46,212)$ (84,158)$

Adjustments to GAAP BasisNon-Budgeted depreciation & amortization (251,578) Non-GAAP basis principal payments 39,416 Grant expenses 804,640

GAAP Change in Net Position 546,266$

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NON-GAAP BUDGETARY BASISYEAR ENDED SEPTEMBER 30, 2017

CITY OF BOWLING GREEN, FLORIDAENTERPRISE FUND

DETAIL SCHEDULE OF REVENUES AND EXPENSESBUDGET AND ACTUAL

Budget Actual VarianceWater DepartmentSalaries 106,519$ 102,892$ 3,627$ Payroll tax 8,149 7,635 514 Employee insurance 21,150 22,906 (1,756) Retirement 3,196 1,832 1,364 Workers compensation 3,916 4,118 (202) Contract labor - 958 (958) Contract operators 14,100 18,155 (4,055) Professional fees 13,498 9,458 4,040 Telephone 4,000 2,516 1,484 Utilities 49,258 18,422 30,836 Liability insurance 5,860 5,340 520 Repairs and maintenance 45,000 55,459 (10,459) Lease/rent 500 - 500 Miscellaneous 5,000 4,290 710 Uniforms 1,200 1,100 100 Training 2,000 1,724 276 Postage 1,000 1,545 (545) Office supplies 500 528 (28) Gas and oil 4,000 2,953 1,047 Dues and subscriptions 600 775 (175) Materials and supplies 9,000 12,634 (3,634) Meter expense 25,000 9,615 15,385 Equipment 10,000 1,033 8,967

Total Water Department 333,446$ 285,888$ 47,558$

Sewer DepartmentSalaries 56,844$ 43,138$ 13,706$ Payroll tax 4,349 3,271 1,078 Employee insurance 14,100 10,553 3,547 Retirement 1,705 593 1,112 Workers compensation 1,958 4,118 (2,160) Contract labor - 1,757 (1,757) Contract operators 42,300 54,465 (12,165) Professional fees 12,498 9,458 3,040 Sludge hauling 18,000 17,940 60 Telephone 2,400 3,106 (706) Utilities 34,000 36,007 (2,007) Liability insurance 5,860 5,340 520 Repairs and maintenance 65,000 58,340 6,660 Miscellaneous 5,500 3,633 1,867 Uniforms 600 587 13 Training 1,200 317 883 Postage 1,200 1,202 (2) Office supplies/ expense 500 568 (68) Gas and oil 3,000 7,202 (4,202) Materials and supplies 10,000 18,284 (8,284)

Total Sewer Department 281,014$ 279,879$ 1,135$


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DETAIL SCHEDULE OF EXPENSESBUDGET AND ACTUAL

Budget Actual VarianceSanitation DepartmentSalaries 54,392$ 53,424$ 968$ Payroll tax 4,161 3,885 276 Employee insurance 14,100 12,938 1,162 Retirement 1,632 1,577 55 Workers compensation 1,958 4,118 (2,160) Contract labor 56,250 64,675 (8,425) Professional fees 7,498 9,464 (1,966) Telephone 600 1,166 (566) Liability insurance 5,860 5,340 520 Repairs and maintenance 29,000 34,661 (5,661) Landfill 80,000 95,129 (15,129) Miscellaneous 1,000 1,348 (348) Uniforms 600 603 (3) Gas and oil 5,000 6,853 (1,853) Materials and supplies 2,000 1,685 315 Equipment 6,000 2,905 3,095

Total Sanitation Department 270,051$ 299,771$ (29,720)$

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DETAIL SCHEDULE OF EXPENSESBUDGET AND ACTUAL


NON-GAAP BUDGET BASIS

TOTALWATER &

WATER SEWER SEWER SANITATION TOTALSalaries 102,892$ 43,138$ 146,030$ 53,424$ 199,454$ Payroll tax 7,635 3,271 10,906 3,885 14,791 Employee insurance 22,906 10,553 33,459 12,938 46,397 Retirement 1,832 593 2,425 1,577 4,002 Workers compensation 4,118 4,118 8,236 4,118 12,354 Contract labor 958 1,757 2,715 64,675 67,390 Contract operators 18,155 54,465 72,620 - 72,620 Professional fees 9,458 9,458 18,916 9,464 28,380 Sludge hauling - 17,940 17,940 - 17,940 Telephone 2,516 3,106 5,622 1,166 6,788 Utilities 18,422 36,007 54,429 - 54,429 Liability insurance 5,340 5,340 10,680 5,340 16,020 Repairs and maintenance 55,459 58,340 113,799 34,661 148,460 Landfill - - - 95,129 95,129 Miscellaneous 4,290 3,633 7,923 1,348 9,271 Uniforms 1,100 587 1,687 603 2,290 Training 1,724 317 2,041 - 2,041 Postage 1,545 1,202 2,747 - 2,747 Office supplies 528 568 1,096 - 1,096 Gas and oil 2,953 7,202 10,155 6,853 17,008 Dues and subscriptions 775 - 775 - 775 Materials and supplies 12,634 18,284 30,918 1,685 32,603 Meter expense 9,615 - 9,615 - 9,615 Equipment 1,033 - 1,033 2,905 3,938

285,888$ 279,879$ 565,767$ 299,771$ 865,538$


DETAIL SCHEDULE OF EXPENSES BY DEPARTMENT


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OTHER REPORTS

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 MANAGEMENT LETTER MANAGEMENT’S RESPONSE TO AUDIT FINDINGS INDEPENDENT ACCOUNTANT’S REPORT ON INVESTMENT COMPLIANCE

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Documents

CITY OF BOWLING GREEN, FLORIDA FINANCIAL STATEMENTS … rpts/2017 bowling green.pdf · and Transfers (100,595) Capital Contributions and Transfers Grant revenues and capital contributions