North Naples FCRD required Audit Year End 12/2014�
�
:
�
a
�
�
�
�
�
�
�
�
�
�
�
�
�
{�
L
\}
�
NORTH NAPLES FIRE CONTROL
AND RESCUE DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH ADDITIONAL REPORTS
THREE MONTHS ENDED
DECEMBER 3t2 14
Ld
El
U
t..
r'
1..'w
TABLE OF CONTENTS
Pa e s
INDEPENDENT AUDITOR'S REPORT ................................ ............................... 1-4
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD &A) .... ............................... i -xi
BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS:
Statement of Net Position .................................................. ............................... 5
Statementof Activities ..................................................... ............................... 6
FUND FINANCIAL STATEMENTS:
Governmental Funds:
BalanceSheet .............................................................. ............................... 7
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position ....................................... ............................... 8
Statement of Revenues, Expenditures and Changes
inFund Balance .......................................................... ............................... 9
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balance of Governmental Funds to the Statement of Activities ........................ 10
NOTES TO THE FINANCIAL STATEMENTS .......................... ............................... 11 -54
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD &A
BUDGET TO ACTUAL COMPARISON - MAJOR FUNDS (General and Special Revenue Funds)
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Summary Statement .................................... ............................... 55
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
GeneralFund - Detailed Statement ...................................... ............................... 56 -58
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Impact Fee Fund - Summary Statement ................................ ............................... 59
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Impact Fee Fund - Detailed Statement 60
BUDGET TO ACTUAL COMPARISON - OTHER NON -MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Inspection Fee Fund - Summary Statement ......................... ............................... 61
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Inspection Fee Fund - Detailed Statement ........................... ............................... 62 -63
53
F
E
a
L'.
}
[A
TABLE OF CONTENTS (CONTINUED)
Page(s)
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control
over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Basic Financial
Statements Performed in Accordance with Government Auditing Standards ....................... 64 -65
Independent Accountant's Report on Compliance with
Section 218.415, Florida Statutes .......................................... ............................... 66
Independent Auditor's Report to Management ............................. ............................... 67 -69
Management's Response to Independent Auditor's Report to Management .. . ........................ Exhibit
i
_.j
w -1
TUSCAN
& Company, PA
Certified Public Accountants & Consultants
INDEPENDENT AUDITOR'S REPORT
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
Board of Commissioners
North Naples Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109 -0492
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of
North Naples Fire Control and Rescue District (the "District ") as of and for the three months ended December
31, 2014, and the related notes to the financial statements, which collectively comprise the District's basic
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
r
tv :: financial statements that are free from material misstatement, whether due to fraud or error.
:�
. Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit
i the financial statements of North Naples Fire Control and Rescue District Firefighters' Pension Fund ( "Pension
Fund ") as of and for the year ended September 30, 2014, which represent 100% of the assets, liabilities and net
C J position as well as 100% of the revenue and expenses of the District's Fiduciary Fund. Those financial
statements were audited by other auditors whose report thereon has been furnished to us, and our opinion,
insofar as it relates to the amounts included for North Naples Fire Control and Rescue District Firefighters'
Pension Trust Fund, is based on the report of the other auditors. The financial statements of the North Naples
Fire Control and Rescue District Firefighters' Pension Trust Fund are included in condensed format only. See
the Basis for Disclaimer of Opinion Paragraph. 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 of America. Those
i - 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
Tax Division
' INTEGRITY ......... SERA ICE ......... EXPERIENCE,"
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333 -2090 • Fax: (239) 333 -2097
Board of Commissioners
North Naples Fire Control and Rescue District
Page 2
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 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.
Summary of Opinions
Opinion Unit Type of Opinion
1....,. Governmental Activities Qualified
General Fund Unmodified
Impact Fee Fund Unmodified
Li Inspection Fee Fund Unmodified
Firefighters' Pension Trust Fund Disclaimer
" Opinions
Basis for Qualifled Opinion on Governmental Activities
Management has elected not to implement GASB Statement No. 68 "Accounting and Financial Reporting for
Pensions - An Amendment of GASB Statement No. 27 ". Accounting principles generally accepted in the
United States of America require that this Statement be implemented by its effective date of fiscal years
" beginning after June 15, 2014, which would increase the assets or liabilities and deferred inflows or outflows in
the Governmental Activities. The amount by which this departure would affect the assets or liabilities and
deferred inflows or outflows in the Governmental Activities has not been determined
a
Qualified Opinion on Governmental Activities
Lj In our opinion, except for the effects of the matter described in the "Basis for Qualified Opinion on
Governmental Activities" and the "Basis for Disclaimer of Opinion on the Aggregate Discretely Presented
Component Units" paragraphs, the financial statements referred to above present fairly, in all material
respects, the financial position of the North Naples Fire Control and Rescue District, as of December 31, 2014,
and changes in financial position thereof for the period then ended in accordance with accounting principles
generally accepted in the United States of America.
i
v Basis for Disclaimer of Opinion on the Firefighters' Pension Trust Fund
The financial statement of the North Naples Fire Control and Rescue District Firefighters' Pension Trust Fund
have not been audited as of and for the three months ended December 31,2014, and we were not engaged to
audit the North Naples Fire Control and Rescue District Firefighters' Pension Trust Fund's financial statements
as part of our audit of the North Naples Fire Control and Rescue District's basic financial statements. North
Naples Fire Control and Rescue District Firefighters' Pension Trust Fund financial activities are included in the
North Naples Fire Control and Rescue District's basic financial statements as a fiduciary fund and represents
L" , 100 percent, 100 percent, and 100 percent of the assets, net position, and revenues, respectively, of the North
Naples Fire Control and Rescue District's fiduciary fund. The Board of Trustees of the North Naples Fire
1L- Control and Rescue District Firefighters" Pension Trust Fund ( "Fund ") elected not to have the Fund audited as
of and for the three months ended December 31, 2014, but rather to have the Fund audited at its fiscal year end
September 30, 2015. This matter is further discussed in the retirement plan note of these financial statements.
Board of Commissioners
North Naples Fire Control and Rescue District
Page 3
Disclaimer of Opinion
Because of the significance of the matter described in the "Basis for Disclaimer of Opinion on the Aggregate
Discretely Presented Component Units" paragraph, we have not been able to obtain sufficient appropriate
audit evidence to provide a basis for an audit opinion in the financial statements of the aggregate discretely
presented component unit of the North Naples Fire Control and Rescue District. According, we do not
(..- express an opinion on these financial statements.
"'I
Unmodified Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above
-= present fairly, in all material respects, the respective financial position of the general, impact fee and inspection
fee funds of North Naples Fire Control and Rescue District as of December 31, 2014, and the respective
changes in financial position, for the three months then ended in accordance with accounting principles
generally accepted in the United States of America.
Matters of Emphasis
On January 1, 2015, the North Naples Fire Control and Rescue District merged with Big Corkscrew Island Fire
Control and Rescue District to form the North Collier Fire Control and Rescue District. Accordingly, these
financial statements reflect the assets, liabilities, fund balance /net position, revenue and expenditures/
expenses of the final operating period (3 months) of the North Naples Fire Control and Rescue District prior to
its merger into the North Collier Fire Control and Rescue District. The merger is further discussed in the
Subsequent Events Note within these financial statements.
Included in these financial statements for North Naples Fire Control and Rescue District are the other required
supplementary information other than MD &A - budgetary ary comparison information. The budgetary
comparison information includes the total fiscal year ended September 30, 2015 original and final amended
budget information at December 31, 2014. It is compared to actual activity for the three months ended
December 31, 2014. Therefore, as required the twelve month budget for fiscal 2015 is compared to the actual
financial activity for the three months ended December 31, 2014. This comparison is further discussed in Note
A - Budgets and Budgetary Accounting.
] Other Matters
Required Supplementary Information
Lj Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages i -xi 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 which considers it to be an essential part of financial reporting for placing the basic financial
17, statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information - management's discussion and analysis (MD &A) 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 required supplementary information - management's discussion and analysis
(MD &A) because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
1
Board of Commissioners
North Naples Fire Control and Rescue District
Page 4
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise North Naples Fire Control and Rescue District's basic financial statements. The required
supplementary information other than MD &A - budgetary comparison information is presented for purposes
of additional analysis and is not a required part of the basic financial statements. The required supplementary
information other than MD &A budgetary comparison information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the required
supplementary information other than MD &A - budgetary comparison information is fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the District's basic financial statements. The Exhibit - Management's Response to Independent
Auditor's Report to Management is not a required part of the basic financial statements but is required by
Government Auditing Standards, Such information has 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
M. assurance on it.
t .. Other Reporting Required by Section 218.415, Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have also issued a report dated August 10, 2015, on
our consideration of North Naples Fire Control and Rescue District's compliance with provisions of Section
218.415, Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and
the results of that testing, and to provide an opinion on compliance with the aforementioned Statute. That
report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415, Florida Statutes
in considering North Naples Fire Control and Rescue District's compliance with Section 218.415, Florida
Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 10, 2015, on
our consideration of the District's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contract 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 North Naples Fire Control and Rescue District's internal control over financial
1 reporting and compliance.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
August 10, 2015
rj
E
0
M
a
n
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD &A)
Management's Discussion and Analysis
of Financial Statements FYE December 31, 2014
This Discussion and Analysis of the North Naples Fire Control & Rescue District's ( "The
District ") basic financial statements is provided to assist the reader in understanding the
District's financial activities and significant changes in ending financial position for the
three months ended December 31, 2014. The District implemented the requirements of
GASB Statement #34 for the fiscal year ended September 30, 2004. This Statement
dramatically changed the District's annual reporting requirements, as well as the financial
statement format and presentation.
Contained within are the basic financial statements, consisting of the government -wide
financial statements, governmental fund financial statements and notes to the financial
statements. This Discussion and Analysis will also provide an analytical overview of
these statements, including comparisons of the District's financial position at September
30, 2014 versus September 30, 2013 and the three months ended December 31, 2014.
'2 District Merger
On February 6, 2014, the District entered into an Interlocal Agreement with Big
Corkscrew Island Fire Control and Rescue District to merge the two districts. Both
District Boards adopted a resolution indentifying their intention to initiate the voluntary
merger process pursuant to Florida Statute Chapter 189.074. The two Districts then
created a proposed Joint Merger Plan which was adopted by both Boards and ultimately
a° = put before the voters of each District by referendum. On November 4, 2014, voters from
both districts approved the referendum to merge the two districts into one. On June 10,
Ell 2015, the Governor signed into legislation the official enabling act of the new District via
Laws of Florida (LOF), Chapter 2015 -191. On January 1, 2015, the North Collier Fire
Control and Rescue District was officially formed by merging the two Districts. There is
LJ no affect, however, from the merger reflected in these financial statements. As such, no
amounts are due to or from either District at December 31, 2014. Likewise, no amounts
were transferred to or from the two Districts during the three months ended December 31,
2014. As of January 1, 2015, the assets, liabilities and net position of this District were
transferred to the North Collier Fire Control and Rescue District. The Districts will
report as one District thereafter.
Likewise, the Board of Trustees of the North Naples Fire Control and Rescue District
Firefighters' Pension Plan elected not to have the three months activity of the Plan
audited at December 31, 2014 but rather have the Plan's activity audited at its September
30, 2015 fiscal year end. As of January 1, 2015, the name of the Plan was changed to the
North Collier fire Control and Rescue District Firefighters' Pension Plan to reflect the
merger of the two districts.
The District is required to have a final financial audit at the last date of operation
(December 31, 2014) prior to merger by Florida Statute. As such, this is the final period
of operation of the North Naples Fire Control and Rescue District.
3
1
B1B /bb 5 -26 -152
in
District Highlights
1. At the conclusion of the year ended September 30, 2014, the District's assets
exceeded its liabilities, resulting in net position of $35,664,462 as compared to net
position at September 30, 2013 of $33,486,782. At December 31, 2014, net position
was $47,636,009, which was up significantly from September 30, 2014 because the
District collected approximately 87% of its tax revenue and incurred only
approximately 25% of its budgeted expenditures.
2. The District's total net position increased $2,177,680 during fiscal year 2014, as
compared to a decrease of $192,638 in total net position during fiscal year 2013. Net
L]" position increased $11,971,547 for the three month period ended December 31, 2014
for the reason noted in item 1 above.
3. The District had $10,718,582 of unrestricted net position at September 30, 2014 that
can be used to meet the District's ongoing obligations, as compared to $10,362,741 at
" September 30, 2013. Unrestricted net position was $21,509,823 at December 31,
2014, an increase of $10,780,241 for the reason noted in item 1 above.
4. Total revenues on the government -wide funds basis increased $2,340,675 or 10
p ercent , for the year ended September 30 2014 vs. the year ended September 30
2013. Total revenues for the three months ended December 31, 2014 were
$19,803,390 or $5,979,407 less than the prior fiscal year. This decrease is partly due
to the millage assessment reduction approved by the District of 1 mill in FY 2014 and
.95 mill for the three months ended December 31, 2014 and the fiscal year 2015 as a
whole.
5. Total expenses on the government -wide basis decreased $29,643 or 1 percent, for the
I ti: year ended September 30, 2014 vs. the year ended September 30, 2013. Expenses
were $7,831,843 for the three months ended December 31, 2014. This represents
three months operational activity of the District. Compared to fiscal year 2014, this
ffi represents approximately 33% of the FY 2014 expenses. This is largely due to
certain annual expenses being required to be paid at the start of the fiscal period and
the additional operating costs related to Station #48.
Government -wide Financial Statements
Government -wide financial statements (Statement of Net Position and Statement of
Activities found on pages 5 and 6) are intended to allow a reader to assess a
government's operational accountability. Operational accountability is defined as the
extent to which the government has met its operating objectives efficiently and
effectively, using all resources available for that purpose, and whether it can continue to
meet its objectives for the foreseeable future. Government -wide financial statements
concentrate on the District as a whole and do not emphasize fund types.
)P
The Statement of Net Position (page 5 resents information on all of the District's assets
and liabilities, with the difference between the two reported as net position. The
_i District's capital assets are included in this statement and reported net of their
accumulated depreciation and reflects debt.
The Statement of Activities (page 6) presents revenue and expense information showing
how the District's net position changed during the fiscal year. Both statements are
.j measured and reported using the economic resource measurement focus (revenues and
expenses) and the accrual basis of accounting (revenue recognized when earned and
expense recognized when incurred).
. BJBfbb 5 -26 -152 11
W
LJ Governmental Fund Financial Statements
The accounts of the District are organized on the basis of governmental funds, each of
which is considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self - balancing accounts that comprise its assets,
liabilities, fund equity or retained earnings, revenues and expenditures. Government
resources are allocated to and accounted for in individual funds based upon the purpose
for which they are to be spent and the means by which spending activities are controlled.
,,
Governmental fund financial statements (found on pages 7 and 9) are prepared on the
modified accrual basis using the current financial resources measurement focus. Under
the modified accrual basis of accounting, revenues are recognized when they become
measurable and available as net current assets.
The Firefighters' Pension Fund was not audited as of and for the three month period
ended December 31, 2014. See the Auditor's Opinion Disclaimer and Note G within
,1 these financial statements.
Notes to the Financial Statements
The notes to the financial statements explain in detail some of the data contained in the
preceding statements and begin on page 11. These notes are essential to a full
understanding of the data provided in the government -wide and fund financial statements.
V, ,; Government -Wide Financial Analysis
The government -wide financial statements are designed so that the user can determine if
the District's financial condition is better or worse than the prior year.
The following is a Condensed Summary Statements of Net Position for the District
.f
(Primary Government) at December 31, 2014, September 30, 2014 and 2013:
Summary Statements of Net Position
Ej
Assets
December 31
September 30
September 30
LJ
2014
2014
2013
Current and Other Assets
$25,547,198
$15,166,968
$14,442,617
EN
Capital Assets
26,224,017
25,048,361
23260,292
Total Assets
51,771,215
40,215,329
37,702,909
J
Liabilities:
Current Liabilities
1,222,849
1,777,825
1,260,251
Non- Current Liabilities
2,912357
2,773,042
2,955,876
Total Liabilities
4,135,206
4,550,867
4,216,127
Net Position:
-•'
Net Investment in Capital Assets
26,120,478
24,936,810
23,116,426
1-31
Restricted
6,708
9,070
7,615
Unrestricted
21,508,823
10,718,582
10,362,741
Total Net Position
7 626.009
$35,664.462
$3.486.782
,
U
BJB/bb 5 -26 -152
11
December 31, 2014 vs. September 30, 2014
3 Current and other assets represent 49 percent of total assets at December 31, 2014, as
compared to 38 percent at September 30, 2014. Current assets at December 31, 2014 are
comprised of unrestricted cash balances of $26,612,181, restricted cash of $267,901,
L unrestricted investments of $3,000,090, due from other governments of $970,617, other
receivables of $41,899 and other assets of $654,510. The balances of unrestricted cash
represent amounts that are available for spending at the discretion of the Board of Fire
Commissioners of the District. Although, approximately half the balance represents ad
valorem taxes collected in the three month period ended December 31, 2014 intended to
fund the North Naples Service Delivery Unit from January 1, 2015 through September
30, 2015. Restricted cash balances are comprised of the impact fee funds restricted for
the purchase of capital assets, and unspent inspections fee revenue restricted to support
the inspection of new construction.
Ed, The net investment in capital assets represent 55 percent of net position at December 31,
2014, as compared to 70 percent at September 30, 2014. These assets are comprised of
land, buildings, improvements, equipment, furniture, and vehicles, net of accumulated
depreciation, and the outstanding related debt used to purchase the assets. The
unrestricted net position balance of $21,508,823 represents resources available for
spending at September 30, 2014.
September 30, 2014 vs. September 30, 2013
Current and other assets represent 38 percent of total assets at September 30, 2014, as
compared to 38 percent at September 30, 2013. Current assets at September 30, 2014 are
comprised of unrestricted cash balances of $10,643,482, restricted cash of $205,648,
unrestricted investments of $3,000,090, due from other governments of $366,925, other
receivables of $43,590 and other assets of $907,233. The balances of unrestricted cash
represent amounts that are available for spending at the discretion of the Board of Fire
-- ` Commissioners of the District. Restricted cash balances are comprised of the impact fee
funds restricted for the purchase of capital assets, and unspent inspections fee revenue
restricted to support the inspection of new construction.
The net investment in capital assets represent 70 percent of net position at September 30,
2014, as compared to 69 percent at September 30, 2013. These assets are comprised of
land, buildings, improvements, equipment, furniture, and vehicles, net of accumulated
�h depreciation, and the outstanding related debt used to purchase the assets. The
unrestricted net position balance of $10,718,582 represents resources available for
spending at September 30, 2014.
,...j
BJB/bb 5 -26 -152 iv
Summary of Revenues, Expenses and Changes in Net Position
For the Three Months Ended December 31, 2014 and For the Years Ended
September 30, 2014 and September 30, 2013
Three Months Ended
Revenues: December 31 2014 FY 2014 FY 2013
General Revenues
Ad Valorem Taxes $19,069,782 $22,238,965 $21,596,392
Charges for Services 404,673 1,214,644 685,092
Program Revenues
Grants 9,610 221,486 410,573
Miscellaneous
Impact Fees 267,237 1,863,019 494,145
Investment Earnings 18,519 54,647 86,060
Gain (Loss) on Disposition
of Capital Assets (1,005) (31,464) (21,065)
Other 34,574 221,500 190.925
Em Total Revenues 18,803,390 25,782,797 23,442,122
Expenses:
Public Safety—Fire/ Rescue Service 7.831.843 2305,117 23.634,760
Increase (Decrease) in Net Position 11,971,547 2,177,680 (192,638)
1 Net Position - Beginning of Year 35.664.462 33.486.782 33.679,420
Net Position -End of Year 47.636.009 $35.664.462 33.486.782
„ 3
The assessed value of the property within the District increased just over 6 percent for the
2014 -2015 fiscal year as compared to the prior year's assessed value, however, the
w: District's Board resolved to reduce the assessed ad valorem millage rate from 1 mill to
.95 mills which resulted in a budgeted reduction of ad valorem revenue. The four years
prior to 2012 -2013, the property values in the District decreased, resulting in a decrease
in Ad Valorem revenue. The cumulative reduction in property value for the 2008 -2009,
2009 -2010, 2010 -2011 and 2011 -2012 fiscal years resulted in a $5,505,981,773 reduction
in taxable property value, and a 20 percent reduction in Ad Valorem revenue. The 2014-
2015 fiscal year marked the third consecutive increase in taxable property value for the
District.
The Board adopted a millage rate of .95 mill, or $1.00 for every $1,000 of taxable
property value. Because the District is capped at a maximum millage rate of 1 mil, the
Board could not adopt a rate higher than the 1 mil, even though statutorily approved
j based on the maximum millage adoption calculations referenced on the Department of
Revenue's Maximum Millage Calculation form.
Ll Historically, the increase in Ad Valorem revenue resulting from the increase in property
value has been sufficient to provide adequate funds to support operational, capital and
reserve financial requirements in the District without increasing the millage rate. The
2014 -2015 General Fund Budget reflects a decrease in Ad Valorem revenue due to the
reduction in millage. As a result, it was anticipated that reserves would be required to
fund capital purchases.
BJB/bb 5 -26 -152 v
1
L :. J
The General Fund continued to loan the Impact Fee Fund money to complete Station #48.
During the three months ended December 31, 2014 the General Fund loaned the Impact
Fee Fund $1,521,072 for a total loan of $1,726,737. The Impact Fee Fund will repay the
loan with future impact fee collections.
The following chart identifies the change in appraised property values in the District and
the millage rate maintained by the District.
Property Values and Millage Rate Assessed
= 200.000,000
$23.000,000,000
522,800,M000
$22,500,000,000
$22 400,000,000
322,200,000,000
$22,000,000,000
i21,8D0,0D0,0D0
521,800,000,000
Fund Balance — Governmental Fund Financial Statements
Staff has worked hard to meet the Board of Fire Commissioners' directive to maintain the
fund balance and cash reserves of the General Fund to solidify the District's fmancial
position. Fund balance in the General Fund is assigned reserves in the amount of
$11,490,619 at December 31, 2014, $617,010 is nonspendable for prepaid expenses and
unassigned of $12,234,315 to fund operations from January 1, 2015 to December 31,
. 2015. This fund balance reflects an increase of $10,929,556 as compared to the fund
balance at the year ended September 30, 2014.
The General Fund fund balance of $11,490,619 at December 31, 2014, is assigned. In
light of the current and forecasted economic trends and recent decrease in property value,
J the Board has established assigned reserves identified as necessary to fund operational
activities of the District in future years. These assigned reserves were created in an effort
L . to address any property value reductions in future years and ensure expenses of the
BJB /bb 5 -26 -152
�, Vl
District would be met during the initial months of the fiscal year when no Ad Valorem
revenue is received.
While assigned reserves have been established and maintained in accordance with
anticipated future needs of the District, it must be noted that the need may arise for the
Board to unassign a portion of these reserves to fund the District's operations should
property values fall or other unforeseen circumstances arise. The following General Fund
fund balance allocations were approved at December 31, 2014:
NonSpendable Fund Balance Amount
General Fund Prepaid Expenses
Assigned Fund Balance Amount
Operating Reserve — First Quarter $ 6,500,000
Minimum Operating Reserve per Policy 2,600,000
Health insurance Claim Reserve 582,884
,m Protective Gear 75,000
" Vehicle Replacement 75,000
Fire Equipment 200,000
Ell Emergency Reserve 761,617
Fire Apparatus 500,000
Community Outreach 3,500
Radio Replacement 21,718
Station Improvements & Equip. 150,000
.. Station #46 Improvements 20.900
Total Assigned Reserves 11,490,619
Unassigned 12,234,315
Total General Fund Balance 524.341.944
The assigned reserves have been established by the Board of Fire Commissioners to meet
the future needs of the District, including operating expenses for the first quarter of the
fiscal year when prior to receipt of Ad Valorem revenue, and the replacement of capital
assets. Additionally, increases in health insurance, and other personnel and operating
expenses require that funds be set aside, or assigned, to prepare for the funding of future
expenditures.
t The three month period ended December 31, 2014 reflects an unusually large increase
due to the timing of tax collections and the final three months operations in which 87% of
0 revenue was collected and only approximately 25% of expenditures incurred. The
growth in this three month operating period was substantially due to the tax collection
` cycle timing in Florida. As such, a majority of tax revenue is collected for the fiscal year
close to the end of December and held to fund the balance of the fiscal year. While the
growth in fiend balance is significant, it is by no means an unnecessarily high
.j accumulation of funds. Not only has it become evident that the District must be able to
provide for operating and personnel expenses in the event of a serious hurricane or other
natural disaster, it has become essential for future planning to ensure the financial
stability of the District by increasing assigned reserves to provide for the future needs of
the District in anticipation of revenue reductions or cost increases. It is also designed to
BIB/bb 5 -26 -152 vii
M
3 allow for replacement of capital assets without a planned increase in millage. It should
also be noted that the Board's intent is to reduce the millage assessed.
Impact Fees
The Board of Fire Commissioners opted to waive impact fees for the 2012-2013 fiscal
I year in an effort to encourage growth in the District, following a two year period when
the Board adopted fees at fifty percent of the allowable amount. For the 2013-2014 fiscal
year, the Board reinstated impact fees and the full rate. This continued for the three
months ended December 31, 2014. As a result of the reinstatement of the full rate, and
the increase in growth in the District impact fees of $1,343,294 were received for the
year ended September 30, 2014 and were $267,237 for the three months ended December
31, 2014. Total Impact Fee Fund expenses for the 13-14 fiscal year were $2,422,150 and
$1,775,749 for the three months ended December 31, 2014, consisting of the cost to
construct and equip Station #48. The Board, by Resolution 13-033, approved a loan from
the General Fund to the Impact Fee Fund for the construction of Station #48, which
resulted in cumulative transfers of $1,726,737 from the General Fund to the Impact Fee
Fund at December 31, 2014.
Inspection Fees
Inspection fee revenue for the three months ended December 31, 2014 was $150,832 and
for the year ended September 30, 2014 was $681,557. In addition, in June of 2014, the
District terminated its Interlocal Agreement with the Fire Code Official's office to
provide fire plan review services and assumed the responsibility for those plan reviews.
As a result $246,714 in plan review fee revenue was received for the year ended
[31 September 30, 2014 and $173,993 for the three months ended December 31, 2014. The
2005-2006, 2006-2007 and 2007-2008 fiscal years realized decreasing inspection fee
1-3 revenues, with the trend continuing through 2011. As a result, for those fiscal years, the
f I General Fund assumed some funding responsibilities for the Inspection Fee Fund. The
1, ", J 2013-2014 fiscal year was the first year since 2006 when the Inspection Fee Fund did not
rely on General Fund support to fund the personnel and operating expenses for that fund,
even with the addition of 4 personnel to perform the fire code plan review functions.
Based on receipts for the three months ended December 31, 2014 for both inspection fees
and plan review fees, it is anticipated this fund will continue to be self-supporting, at
lease for the next few fiscal years as growth and expansion continue within the District.
Staff will, however, continue to monitor the fund to determine if the General Fund will
be required to provide financial assistance to support the Inspection Fee Fund operating
costs.
[11
Budgetary Highlights
Budget versus actual comparisons are reported in the required supplementary information
other than management's discussion and analysis on pages 55 through 63. General Fund
expenditures were for the three months ended December 31, 2013 and are compared to
the entire fiscal year ended September 30, 2015 budget as required by GASB and State of
Florida Law.
In this comparison, it should be noted the results reflect collection of approximately 87%
of revenue vs. the year ended September 30, 2014 and three months of actual
expenditures compared to the entire FY 15 budget.
BJB/bb 5-26-152 viii
The most significant events reflected within this comparison include reduction of
r assessed millage from 1 mill to .95 in ad valorem revenue.
As to expenditures, the actual results reflect certain annual expenditures required to be
paid and the beginning of the period, certain personnel costs related to hiring for the
expected opening of Station #48 in April 2015, construction costs related to Station #48
and other capital expenditures.
3 Capital Assets
Non - depreciable capital assets include land and construction in progress. Depreciable
assets include buildings, improvements other than buildings, equipment, furniture and
vehicles.
�.x
The following is a schedule of the District's capital assets as of December 31, 2014,
., September 30, 2014 and 2013,
Capital Assets
December 31 September 30 September 30
Capital Assets 2014 2014 2013
Land $11,182,814 $11,182,814 $11,182,814
Construction in Progress 5.166.857 3,391,108 1.139.550
Total Capital Assets not Depreciated 16,349,671 14,573,922 12,322,364
Assets Held Under Capital Lease 160,240 160,240 160,240
1; "< Buildings 12,605,262 12,580,450 12,436,327
Office Equipment 689,428 685,400 673,397
Vehicles 8,427,643 7,844,231 7,810,807
Equipment & Machinery 3.589 321 3.538.724 3.208.876
Total Capital Assets Being Depreciated 25,471,894 24,809,045 24,289,647
Accumulated Depreciation
~~ Assets Held Under Capital Lease (64,542) (37,835) (11,128)
Buildings (5,749,277) (5,357,821) (4,966,295)
Office Equipment (639,119) (606,708) (555,884)
Vehicles (6,584,679) (6,126,769) (5,698,320)
Equipment & Machinery (2.559.931) (,2,205.473) (2.120.092)
Total Accumulated Depreciation (15,597,548) (14,334.606) (13,351.719)
Total Capital Assets being Depreciated,
Net 9.874,346 10,474.439 10,937,928
Capital Assets Net of Depreciation 26,224,017 25,048,361 23,260,292
Less: Capital Lease Payable (103.539) (111,551) (143.866)
n
Net Investment in Capital Assets 526.120.478 $*810.
The purchases of capital assets during the three month period ended December 31, 2014
centered around construction of Station #48. Significant capital asset purchases made
during the three months ended December 31, 2014 include:
1. Quick response vehicle for $40,000 replaces Squad #45;
BJB /bb 5 -26 -152 lx
r
l..J
' 2. Various equipment of $90,000;
3. Replacement pumper truck totaling $499,900;
4. Two pickup trucks totaling $60,000;
5. Payment of construction costs for Station #48 located on Livingston Road in the
amount of $1,775,749.
fi- For additional information on the District's capital assets, see Note E on pages 30 and 31.
Debt Administration
s As of December 31, 2014, the District had long term obligations of $2,936,660, as
compared to $2,805,357 at September 30, 2014, an increase of $131,303 or 5 percent.
That debt consists of:
b
1. Compensated absences (accrued vacation liability) in the amount of $1,657,916 at
December 31, 2014, as compared to $1,568,601 at September 30, 2014. The
increase in this liability is due to hiring employees for Station #48.
2. OPEB obligation of $1,175,205, representing post employment health insurance
obligations pursuant to GASB No. 45.
3. Capital lease for medical equipment in the amount of $103,539. This lease was
entered into in 2013 as a lease to purchase agreement for 12 Lucas Chest
Compressors, and is a principal only lease, with no associated interest cost.
Economic Facts
The following factors were taken into consideration when the budget for the three months
ended December 31, 2015 and for the fiscal year ending September 30, 2015 was
prepared:
1. The District decreased its millage rate for the fiscal year ending September 30,
2015 from 1.00 mill to 0.95 mill. The Board adopted the reduced millage rate in a
good faith show of support to the taxpayers and voters of the anticipated merger
of the District and the Big Corkscrew Island Fire Control and Rescue District.
Pursuant to the statutorily required Joint Merger Plan, the District would reduce
its millage rate to.95 if the merger is successfully passed at the referendum held at
the November 2014 General Election. Based on anticipated long term savings of
the merger, the Joint Merger Plan calls for a reduction in the District's millage
rate to .95 for the next five years. Subsequent to the adoption of the 2014 -2015
budget and accompanying millage rate, the referendum successfully passed, and
. "" effective January 1, 2015, the North Naples Fire Control and Rescue District and
the Big Corkscrew Island Fire Control and Rescue District merged to become the
LJ North Collier Fire Control and Rescue District,
2. The opening of Station #48 occurred April 2015; thus, provision for the staffing,
operation and maintenance is contained within the General Fund Budget, and the
"3 completion of construction and placement of equipment and other infrastructure is
provided for in the 2014 -2015 Impact Fee Fund Budget..
=:u =' 3. The use of General Fund reserves has been limited to the purchase of capital
g items. Capital purchases include vehicle replacements totaling $60,000 and the
purchase or a replacement pumper truck in the amount of $499,900.
BJB/bb 5 -26 -152 x
�
}
["I'l
U-2
�
�!
�
L
El�
�
�
�
El"I
EJ
1
U
�
�j
�
�
Request fo rI formation
This financial zprt Bd6gne b provide the reader an overview o the Distric!
Questions regarding any information pole io this report should be diretd to: Becky
Boso,AsiSstantChief of Administrative Services, North Naples Fire Control a
Rescue District, 1885 Veteran's Park Drive, Naples, FL3410,2959322e-mai:
b mn d o &2oahna 1 S§r c m.
Bm/bb 5-26-152
x!
(
E]
Ell
3
r_
a
r....,'1
.;
>
Lj
IJ
i
0
L
`i
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF NET POSITION
December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents
Restricted cash and cash equivalents
Investments
Due from other governments
Other receivables
Other assets
Total current assets
Noncurrent assets:
Capital assets:
Land
Construction in progress
Depreciable buildings, equipment, and vehicles
(net of $15,597,548 accumulated depreciation)
Total noncurrent assets
TOTAL ASSETS
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses
Retainage payable
Contract deposits
Unearned revenue
Current portion of long -term obligations
Total current liabilities
Noncurrent liabilities:
Noncurrent portion of long -term obligations
TOTAL LIABILITIES
NET POSITION
Net investment in capital assets
Restricted
Unrestricted
TOTAL NET POSITION
The accompanying notes are an integral part of this statement.
Governmental
A
$ 20,612,181
267,901
3,000,090
970,617
41,899
654,510
25,547,198
11,182,814
5,166,857
9,874,346
26,224,017
5I,771,215
1,002,024
189,022
7,500
24,303
1,222,849
2,912,357
4,135,206
26,120,478
6,708
21,508,823
$ 47,636,009
Page 5 of 69
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF ACTIVITIES
Three Months ended December 31, 2014
EXPENSES
Governmental Activities
Public Safety - Fire Protection
Personnel services
Operating expenses
Depreciation
Interest and fiscal charges
TOTAL EXPENSES - GOVERNMENTAL ACTIVITIES
PROGRAM REVENUES
Charges for services
Operating grants and contributions
NET PROGRAM EXPENSES
GENERAL REVENUES
Ad Valorem taxes
Impact fees
Interest
Loss on disposition of capital assets
Other
TOTAL GENERAL REVENUES
INCREASE IN NET POSITION
NET POSITION - Beginning of the year
NET POSITION - End of the year
The accompanying notes are an integral part of this statement.
Page 6 of 69
Governmental
Activities
$ 5,488,182
1,050,196
1,284,752
8,713
7,831,843
404,673
9,610
7,417,560
19,069,782
267,237
18,519
(1,005)
34,574
19,389,107
1 1,971,547
35,664,462
$ 47,636,009
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 7 of 69
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2014
TOTAL ASSETS $ 27,291,282 $ 2,197,341 $ 503,617 $ 29,992,240
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and accrued expenses $
720,442
$ 281,582
$ -
Total
Retainage payable
General
Impact Fee
Inspection Fee
Governmental
Due to other funds
Fund
Fund
Fund
Funds
ASSETS
7,500
-
-
7,500
Cash and cash equivalents
$ 20,612,181
$ -
$ -
$ 20,612,181
Restricted cash and cash equivalents
-
1,540
266,361
267,901
Investments
3,000,090
-
-
3,000,090
Due from other governments
796,456
65,096
109,065
970,617
Due from other funds
2,223,646
2,130,705
90,691
4,445,042
Other receivables
41,899
-
-
41,899
Prepaid expenses
617,010
-
37,500
654,510
TOTAL ASSETS $ 27,291,282 $ 2,197,341 $ 503,617 $ 29,992,240
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and accrued expenses $
720,442
$ 281,582
$ -
$ 1,002,024
Retainage payable
-
189,022
-
189,022
Due to other funds
2,221,396
1,726,737
496,909
4,445,042
Contract deposits
7,500
-
-
7,500
Unearned revenue
-
-
-
-
TOTAL LIABILITIES
2,949,338
2,197,341
496,909
5,643,588
FUND BALANCE
Nonspendable
617,010
-
37,500
654,510
Restricted
-
-
6,708
6,708
Assigned
11,490,619
-
-
11,490,619
Unassigned
12,234,315
-
(37,500)
12,196,815
TOTAL FUND BALANCE
24,341,944
-
6,708
24,348,652
TOTAL LIABILITIES AND
FUND BALANCE $ 27,291,282 $ 2,197,341 $ 503,617 $ 29,992,240
The accompanying notes are an integral part of this statement.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
Page 8 of 69
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2014
Amount
s;
Total fund balance of governmental funds
$
24,348,652
Amounts reported for governmental activities in the
Statement of Net Position are different because:
1.
Capital assets used in governmental activities are not fmancial resources
1
and therefore are not reported in the governmental funds.
_J
Capital assets not being depreciated:
Land
11,182, 814
Ll
Construction in progress
5,166,857
16,349,671
Governmental capital assets being depreciated:
Building, equipment and vehicles
25,471,894
Less accumulated depreciation
(15,597,548)
9,874,346
Long -term obligations are not due and payable in the current period
and therefore are not reported in the funds.
Net OPEB obligation
(1,175,205)
a
Capital lease
(103,539)
Compensated absences
(1,657,916)
(2,936,660)
W
Elimination of interfund amounts:
Due to other funds
(4,445,042)
Due from other funds
4,445,042
Total net position of governmental activities
$
47,636,009
j
a
''
The accompanying notes are an integral part of this statement.
L
..
L13
1... i
� l
E2
El
"
E-1
L
U
0
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
Page 9 of 69
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Three Months ended December 31, 2014
Total
General Impact Fee
Inspection Fee
Governmental
Fund Fund
Fund
Funds
REVENUES
Ad Valorem taxes $ 19,069,782 $ -
$ -
$ 19,069,782
Intergovernmental revenue:
State firefighter supplement 9,610 -
-
9,610
Federal grants - _
_
-
Charges for services:
Inspection fees and other 79,848 -
150,832
230,680
Plan review fees - -
173,993
173,993
Impact fees - 267,237
-
267,237
Miscellaneous:
Interest 18,254 161
104
18,519
Other 34,574 -
-
34,574
TOTAL REVENUES 19,212,068 267,398
324,929
19,804,395
EXPENDITURES
Current
Public safety
Personnel services
Operating expenditures
Capital outlay
Debt service:
Principal reduction
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES
AND USES
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES
FUND BALANCE - Beginning of the year
FUND BALANCE - End of the year
5,034,127 - 314,740 5,348,867
1,033,637 4,008 12,551 1,050,196
687,459 1,775,749 - 2,463,208
8,012 - - 8,012
- 8,713 - 8,713
6,763,235 1,788,470 327,291 8,878,996
12,448,833 (1,521,072) (2,362) 10,925,399
1,795 - - 1,795
- 1,521,072 - 1,521,072
(1,521,072) - - (1,521,072)
(1,519,277) 1,521,072 - 1,795
10,929,556 - (2,362) 10,927,194
13,412,388 - 9,070 13,421,458
$ 24,341,944 $ - $ 6,708 $ 24,348,652
The accompanying notes are an integral part of this statement.
t.
Eq
Lil
l
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE
OF GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Three Months ended December 31, 2014
Net change (revenues and other financing sources over expenditures and
other financing uses) in fund balance - total governmental funds
The increase (change) in net position reported for governmental activities
in the Statement of Activities is different because:
Governmental funds report capital outlays as expenditures.
In the Statement of Activities, however, the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense. The loss on disposition of capital assets
decreases the net position.
Plus: expenditures for capital assets
Less: proceeds on disposition of capital assets
Less: loss on disposition of capital assets
Less: current year depreciation
The issuance of debt is reported as a financing source in governmental
funds and thus contributes to the change in fund balance. In the
Statement of Net Position, however, issuing debt increases long -term
liabilities and does not affect the Statement of Activities.
Similarly, repayment of principal is an expenditure in the
governmental funds but reduces the liability in the Statement of
Net Position.
Borrowings (proceeds from issuance):
Less: capital lease
Repayments (principal retirement):
Plus: capital lease
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.
Less: transfers in
Plus: transfers out
Less: increase in Net OPEB obligation
Less: increase in compensated absences
Increase in net assets of governmental activities
The accompanying notes are an integral part of this statement.
2,463,208
(1,795)
(1,005)
(1,284,752)
Page 10 of 69
Amount
$ 10,927,194
1,175,656
8,012
8,012
(1,521,072)
1,521,072
(89,315)
(89,315)
$ 12,021,547
I
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 11 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
North Naples Fire Control and Rescue District (the "District ") is an independent
special taxing district located in northern Collier County, Florida. The District was
originally established on April 22, 1961 by Laws of Florida, Chapter 61 -2032, then
reestablished by Laws of Florida Chapter 84 -416, as amended. The District has the
general and special powers prescribed by Florida Statute Chapters 189, 191 and
633.15. The District's governing legislation was recreated, reenacted and codified by
Laws of Florida, Chapter 99 -450 on July 13, 1999 and amended by Laws of
Florida, Chapter 2006 -353 on June 23, 2006. The District is governed by a five (5)
member elected Board of Commissioners. Commissioners serve on a staggered four
(4) year term basis.
On February 6, 2014, the District entered into an Interlocal Agreement with Big
Corkscrew Island Fire Control and Rescue District to merge the two districts. Each
Board adopted a resolution identifying their intent to initiate the voluntary merger
process pursuant to Florida Statute Chapter 189.074. The two Districts created a
proposed Joint Merger Plan which was adopted by both Boards and ultimately put
before the voters of each District by referendum. On November 4, 2014, voters
from both districts approved the referendum to merge the two districts into one. On
Ll
June 10, 2015, the Governor signed into legislation the official enabling act of the new
District via Laws of Florida (LOF), Chapter 2015 -191, On January 1, 2015, the
,
North Collier Fire Control and Rescue District was officially formed by merging the
two Districts. There is no affect from the merger reflected in these financial
statements. These financial statements reflect the final three months activity of the
North Naples Fire Control and Rescue District. The Board of the District elected to
delay implementation of GASB Statement No. 68 "Accounting and Financial
Reporting for Pensions - An Amendment of GASB Statement No. 27" for efficiency
.w
purposes and cost savings until the fiscal year end of the North Collier Fire Control
and Rescue District as of and for the nine months ended September 30, 2015.
Likewise, the Board of Trustees of the North Naples Fire Control and Rescue
District Firefighters' Pension Plan elected not to have the three months activity of the
Plan audited as of and for the three months ended December 31, 2014 but rather
have the Plan's activity audited at its September 30, 2015 fiscal year end.
t�'�
U
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 12 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization, continued
As of January 1, 2015, the assets, liabilities, and net position of North Naples Fire
Control and Rescue District were transferred to the newly formed North Collier Fire
Control and Rescue District, The Districts will report as one District thereafter.
r The North Naples Fire Control and Rescue District provides fire control and
protection services, fire safety, inspections, code enforcement, fire hydrant
maintenance, firefighter training, and crash and fire rescue services as well as basic
and advanced life support services. In providing these services, the District operates
and maintains seven (7) stations and the related equipment and employs
approximately 150 full -time professional firefighters and administrative staff. The
District is currently in the process of constructing an 8th station which opened in early
April 2015.
During the year ended September 30, 2009, the District entered into a joint venture
agreement with Florida SouthWestern State College (FSW) for the operation of the
North Naples Fire Training Center ( NNFTC) to educate and train students as State
Certified Firefighters. The District is licensed to operate the NNFTC and FSW is the
L „ program coordinator. The District provides the training room and training facilities for
the NNFTC. FSW, as program coordinator, is responsible for the operations of the
NNFTC including but not limited to the screening and enrolling of students and for
screening and engaging instructors. Therefore, the activities of the NNFTC are not
included in the District's basic financial statements.
Reporting Entity
The District adheres to Governmental Accounting Standards Board (GASB)
LJ Statement Number 14, "Financial Reporting Entity," (GASB 14) as amended by
GASB Statement Number 39, "Determining Whether Certain Organizations Are
Component Units" (GASB 39) and GASB Statement Number 61, "The Financial
Reporting Omnibus - An Amendment of GASB Statements No. 14 and No. 34 ".
Li This Statement requires the basic financial statements of the District (the primary
government) to include its component units, if any. A component unit is a legally
separate organization for which the elected officials of the primary government are
financially accountable. Based on the criteria established in GASB 14, as amended,
there are no component units required to be included or included in the District's
. -1 basic financial statements.
wj
U
Las
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 13 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Government -wide Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the activities of the District and do
not emphasize fund types. These governmental activities comprise the primary
government. Fiduciary funds are properly not included in the Government -wide
financial statements. General governmental and intergovernmental revenues support
the governmental activities. The purpose of the government -wide financial statements
is to allow the user to be able to determine if the District is in a better or worse
financial position than the prior year. The effect of all interfund activity between
governmental funds has been removed from the government -wide financial
L 211 statements.
Government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the pension fund
financial statements. The pension fund financial statements are only reflected as
condensed information as of and for the year ended September 30, 2014, in the
notes herein. The pension fund as of and for the three month period ended December
31, 2014 were not audited and are not included herein. As such, the opinion in the
J pension trust fund has been disclaimed. Under the accrual basis of accounting,
revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and
exchange -like transactions are recognized when the exchange takes place.
Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange
transactions are recognized in accordance with the requirements of GASB Statement
Number 33, "Accounting and Financial Reporting for Nonexchange Transactions"
(GASB 33).
Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements rather than reported as expenditures.
Lj
Proceeds of long -term debt are recorded as liabilities in the government -wide
financial statements rather than as other financing sources. Amounts paid to reduce
long -term indebtedness of the reporting government are reported as a reduction of
the related liability in the government -wide financial statements rather than as
expenditures.
Ary
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 14 of 69
NOTES TO THE FINANCIAL STATEMENTS
y December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Government -wide Financial Statements, continued
The Statement of Activities demonstrates the degree to which the direct expenses of
a given function 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, and 2) grants and
contributions that are restricted to meeting the operational or capital improvements of
a particular function. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
j Program revenues are considered to be revenues generated by services performed
and/or by fees charged such as inspection fees, burn permits, and hydrant tests.
Fund Financial Statements
The District adheres to GASB Number 54, "Fund Balance Reporting and
Governmental Fund Type Definitions ". Essentially, the implementation resulted in
adoption of a fund balance policy and reclassification of the components within fund
balance.
The accounts of the District are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted
,., for with a separate set of self - balancing accounts that comprise its assets, liabilities,
fund equity or net position, revenues, and expenditures or expenses, as
appropriate. Government resources are allocated to and accounted for in individual
s funds based upon the purpose for which they are to be spent and the means by
which spending activities are controlled.
Fund financial statements for the District's governmental funds (fiduciary fund is not
included, see opinion disclaimer) are presented after the government -wide financial
statements. These statements display information about major funds individually and
nonmajor funds in aggregate for governmental funds. The fiduciary statement includes
financial information for the firefighters' pension fund. The fiduciary fund represents
assets held by the District in a custodial capacity for the benefit of other individuals.
r
t
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 15 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Governmental Funds
f: i3
When both restricted and unrestricted resources are combined in a fund,
s: expenditures are considered to be paid first from restricted resources, as appropriate,
and then from unrestricted resources. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are considered to be available when they are
collected within the current period or soon thereafter to pay liabilities of the current
:... period.
The District's major funds are presented in separate columns on the governmental
fund financial statements. The definition of a major fund is one that meets certain
criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and
Management's Discussion and Analysis - for State and Local Governments" (GASB
°3
34). The funds that do not meet the criteria of a major fund are considered
non -major funds and are combined into a single column on the governmental fund
Ji
financial statements.
LAI
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported in separate columns on the fund financial statements.
L- -3
Fiduciary Fund (Not Included - See Opinion Disclaimer)
The pension trust fund accounts for the activities of the Firefighters' Pension Plan,
which accumulates resources for the pension benefit payments to qualified firefighters.
The net position of this fund is not considered to be net position of the District and is
not available to the District's creditors.
Measurement Focus and Basis of Accounting
EJ
Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the basic financial statements. Basis of
LJ
accounting relates to the timing of the measurements made, regardless of the
measurement focus applied.
H,
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded
t
s.3
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 16 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Measurement Focus and Basis of Accounting, continued
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 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.
...j
Revenues are considered to be available when they are collectible within the current
period and soon enough thereafter to pay liabilities of the current period. For this
purpose, the District considers tax revenues to be available if they are collected
within sixty days of the end of the current fiscal period.
Revenues susceptible to accrual are interest on investments, and intergovernmental
revenues. Interest on invested funds is recognized when earned. Intergovernmental
revenues that are reimbursements for specific purposes or projects are recognized
when all eligibility requirements are met.
Expenditures are generally recognized under the modified accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (1)
principal and interest on long -term debt, if any, is recognized when due; and (2)
expenditures are generally not divided between years by the recording of prepaid
expenditures.
,_
Separate financial statements are provided for governmental funds (and fiduciary
t
funds are not provided - see opinion disclaimer), even though the latter are excluded
from the government -wide financial statements.
Non - current Government Assets/Liabilities
GASB 34 requires non - current governmental assets, such as land and buildings, and
non- current governmental liabilities, such as notes payable and capital leases, to be
reported in the govemmental activities column in the government -wide Statement of
Net Position.
..
Y,
"
L J NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 17 of 69
"" NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Maior Funds
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the District, except those required to be accounted for in another fund.
The Impact Fee Fund consists of fees imposed and collected by Collier County based
' on new construction within the District. The fees are restricted and can only be used
for certain capital expenditures associated with growth within the District.
Non -Maior Fund
The District reports the following non -major fund:
El The Inspection Fee Fund is used by the District to account for the receipt and
expenditures of its Inspection Fee Program. Fees are charged for the inspection of
new building construction. The fees are collected by Collier County and are
remitted to the District.
U Fiduciary Fund (Not Included in these Financial Statements - See Opinion
Disclaimer)
Fiduciary funds are excluded in the government -wide financial statements because
the resources of those funds are not available to support the District's programs. The
only type of fiduciary funds the District maintains is a Firefighters' Pension Fund,
which accounts for retirement assets held by the Plan that are payable to qualified
"
firefighters upon retirement.
Bud2etary Information
The District has elected to report budgetary comparisons of its major funds and its
non -major fund as required supplementary information (RSI).
E
U
E. j
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 18 of 69
t NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Investments
LJ The District adheres to the requirements of GASB Statement Number 31,
"Accounting and Financial Reporting for Certain Investments and for External
f
Investment Pools," (GASB 31) in which all investments are reported at fair value.
r-
,y
Investments, including restricted investments, consist of certificates of deposit, U.S.
Government securities, corporate debt and equity securities, and securities of
government agencies unconditionally guaranteed by the U.S. Government.
Capital Assets
Capital assets, which include land, construction in progress, buildings, equipment and
vehicles, are reported in the government -wide Statement of Net Position.
j
The District follows a capitalization policy which calls for capitalization of all capital
assets that have a cost or donated value of $1,000 or more and have a useful life in
LJ
excess of one year.
All capital assets are valued at historical cost, or estimated historical cost if actual
historical cost is not available. Donated capital assets are valued at their estimated
fair market value on the date donated. Public domain (infrastructure) capital assets
consisting of certain improvements other than building, including curbs, gutters and
,...
drainage systems, are not capitalized, as the District generally does not acquire such
assets. No debt - related interest expense is capitalized as part of capital assets in
accordance with GASB 34.
Maintenance, repairs and minor renovations are not capitalized. The acquisition of
land and construction projects utilizing resources received from Federal and State
expenditure is incurred.
agencies are capitalized when the related ex
g P P
Expenditures that materially increase values, change capacities or extend useful lives
are capitalized. Upon sale or retirement, the cost is eliminated from the respective
accounts.
Ell
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 19 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
.:
Capital Assets, continued
Lj
Expenditures for capital assets are recorded in the fund statements as current
expenditures. However, such expenditures are not reflected as expenditures in the
government -wide statements, but rather are capitalized and depreciated.
Depreciable capital assets are depreciated using the straight -line method over the
. ° °'
following estimated useful lives:
F...-
Capital Asset Years
--
Buildings 15 -30
Capital Assets acquired under Capital Lease 6
L.,
Office Equipment 3 -30
Vehicles 3 -10
Equipment and Machinery 3 -15
Budgets and Budgetary Accounting
The District adopted an annual budget for the General Fund.
.:
The District adopted annual budgets for the Special Revenue Funds - Impact Fee
Lj
Fund and the Inspection Fee Fund.
No budget was adopted or required to be adopted for the Firefighters' Pension Trust
Fund.
The annual budget reflected in these financial statements in the Statement of
Revenues, Expenditures and Changes in Fund Balance - Budget and Actual, as
1 -a
required by GASB is the annual budget adopted for fiscal year ended September 30,
LJ
2015, however, actual activity used to compare against the annual budget, is only for
the three month period ended December 31, 2014.
L.,
f ,
,
El
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 20 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
r
LA Budgets and Budgetary Accounting, continued
Eli The District follows these procedures in establishing budgetary data for the General
[A Fund, the Impact Fee Fund, and the Inspection Fee Fund:
I During the summer of each year, the District Fire Chief submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
the upcoming October 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these basic financial statements, are as originally
adopted or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
No budget amendments were approved by the Board of Commissioners during the
three months ended December 31, 2014 for the General Fund, Impact Fee Fund or
Inspection Fee Fund.
[17 Impact Fees/Deferred Revenue
The District levies an impact fee on new construction within the District. The intent of
the fee is for growth within the District to pay for capital improvements needed due to
the growth. The fee is imposed and collected by Collier County and remitted to the
District. The fee is refundable if not expended by the District within six (6) years from
Ll
the date of collection. The District, therefore, records this fee as restricted cash and
unearned revenue until the date of expenditure, at which time it is recognized as
revenue and charged to capital outlay in the fund financial statements and capital
assets in the goverment-wide financial statements.
LA
r, �
;.J
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 21 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Net Position
In government -wide financial statements net position is identified as restricted when
there are externally imposed constraints as to its use, such as through debt covenants,
Uil by grantors, or by law.
Fund Balances
The governmental fund financial statements the District maintains include
nonspendable, restricted, assigned, and unassigned fund balances. Nonspendable
fund balances are those that cannot be spent because the are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact.
Criteria include items that are not expected to be converted into cash, for example
prepaid expenses.
Restricted fund balances are those that are restricted by a third party. Restricted fund
balances can only be spent for the stipulated purposes.
The District's assigned fund balances are a result of official action of the District's
..., Board. The District's intent is to maintain a minimum assigned fund balance level of
three (3) months of budgeted total expenditures. The assigned fund balance includes
mm; the District's operational and capital reserves as well as its disaster reserve. At
December 31, 2014, fund balance is also assigned for a variety of specific items by
"\ District Board action. Any use of the assigned fund balance requires the District's
" Board approval.
.. Due To/From Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded
by funds affected in the period in which the transactions are executed.
Due From Other Governments
No allowance for losses on uncollectible accounts has been recorded since the
District considers all amounts to be fully collectible.
L
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 22 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Compensated Absences
The District's employees accumulate annual leave based on the number of years of
- }
continuous service. Upon termination of employment, employees can receive
payment of accumulated annual leave if certain criteria are met. The costs of
accumulated annual leave benefits (compensated absences) are expended in the
respective operating funds when payments are made to employees. However, the
liability for all accrued vacation and personal leave benefits is recorded in the
government -wide Statement of Net Position.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
t
portion of the applicable appropriation, is not employed by the District because, at
present, it is not necessary in order to assure effective budgetary control or to
.ww
facilitate effective cash planning and control.
Management 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, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenditures during the reporting period.
Actual results could differ from those estimates.
Interfund Transactions
The District considers interfund receivables (due from other funds) and interfund
t
payables (due to other funds) to be loan transactions to and from other funds to cover
temporary (three months or less) cash needs. Transactions that constitute
reimbursements to a fund for expenditures /expenses initially made from it that are
,.. I
properly applicable to another fund are recorded as expenditures /expenses in the
reimbursing funds and as reduction of expenditures /expenses in the fund that is
reimbursed. Such amounts are eliminated in the Government -wide Financial
Statements.
,,,
SL"
I
i
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 23 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Subsequent Events
A Subsequent events have been evaluated through August 10, 2015, which is the date
the basic financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
Cash and cash equivalents of the primary government (exclusive of the Firefighters'
Pension Trust Fund) were $20,880,082, of which $267,901 was restricted. Total
cash and cash equivalents included cash on hand of $1,150 at December 31, 2014.
Deposits
The District's deposit policy allows deposits to be held in demand deposit, money
market accounts and the Florida State Board of Administration - Local Government
Surplus Trust Fund (SBA). All District depositories are institutions designated as
qualified depositories by the State Treasurer at December 31, 2014.
h
The District adheres to GASB Statement Number 31, "Accounting and Financial
Reporting for Certain Investments and for External Investment Pools." Under this
Statement, the District has elected to show all investments at fair value, with the
,,j
exception of the Local Government Surplus Funds Investment Pool Fund PRIME
El
(State Board of Administration), an external 2a7 - like investment pool. The Local
Government Surplus Funds Investments Pool Trust Fund's shares are stated at
LJ
amortized cost, which approximates fair value. These investments are subject to the
risk that the market value of an investment, collateral protecting a deposit or securities
Ell
underlying a repurchase agreements, will decline.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 24 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Deposits, continued
Deposits consist of the following at December 31, 2014:
Carrying Bank
District Amount Balance
Unrestricted
General Fund
Depository Accounts
$
7,484,390
$
7,685,997
Money Market
13,126,001
12,925,038
SBA - Prime
640
640
Total General Fund
$
20,611,031
$
20,611,675
_ Restricted
General Fund
Depository Accounts
$
-
$
-
Special Revenue Funds
Impact Fee
Depository Accounts
1,540
36,743
Inspection Fee
Depository Accounts
266,361
266,361
Total Special Revenue Funds
267,901
303,104
Total Restricted Funds
$
267,901
$
303,104
The District's deposits were entirely covered by federal depository insurance or by
collateral pursuant to the Public Depository Security Act (Florida Statute 280) of the
State of Florida except for the $640 held in the SBA. Bank balances approximate
market value.
The District held no other types of deposits during the three months ended December
31, 2014. The local Government Surplus Funds Trust Fund is not required to be
categorized because the investments are not evidenced by securities that exist in
physical or book entry form.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 25 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Restricted Cash and Equivalents
The following is a brief description of the restrictions on cash and cash equivalents:
The Impact Fee account is used to account for the deposit of impact fees received
and is restricted for certain capital asset acquisition associated with growth within the
1 District. Impact fees are collected by Collier County for the District pursuant to
County ordinance and District resolution.
The Inspection Fee account is used to account for inspection fees collected for
performing new construction fire inspections within the District. Such revenue is
restricted for inspection service related costs.
NOTE C - INVESTMENTS
District - Investments
Investments of the District (primary government) (exclusive of the Firefighters'
Pension Trust Fund) was $3,000,090 (market value) and $3,000,090 (bank
- balance) at December 31, 2014 and consisted of a certificate of deposit which was
designated as a public fund with a qualified public depository, and was, therefore,
entirely collateralized pursuant to the Public Depository Security Act (Florida Statute
280) of the State of Florida.
Firefighters' Pension Plan - Investments (Included as Condensed Financial
Information Only as of and for the Year Ended September 30, 2014 - See
Retirement Note and Opinion Disclaimer)
. Investments held in the Firefighters' Pension Trust Fund totaled $48,290,003
(including $1,902,216 in cash and cash equivalents, $8,941,510 in mutual funds,
$22,307,775 in equity securities, $11,795,552 in fixed income securities, and
$3,342,950 in real estate) at September 30, 2014. Such investments are
administered in accordance with Firefighters' Pension Board policy. This policy
provides for investments in cash and cash equivalents, money markets, mutual funds,
LJ equities, treasury notes, federal agency guaranteed securities, corporate bonds, notes
and/or equities and real estate.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 26 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE C - INVESTMENTS, CONTINUED
Firefithters' Pension Plan - Investments, continued
w The Firefighters' Pension Trust Fund accounts for resources held to fund the
respective firefighter employee pension benefits.
] The Firefighters' Pension Trust Fund investments were held by a financial and
investment institution and are subject to certain insurances up to limits specific to the
trustee /custodian institution and retirement trust funds. These assets are subject to
loss of principal.
Investment Authorization:
The Plan's investment policy is determined by the Plan's Board of Trustees. The
policy has been designed by the Board to conduct the operations of the Plan in a
manner so that the assets will provide the pension and other benefits provided under
E applicable laws. As such, the policy is designed by the Board to maximize the Plan's
asset value, while assuming risk that is consistent with the Board's risk tolerance. The
t ,.J Trustees are authorized to acquire and retain every kind of property (real, personal or
mixed) and every kind of investment specifically including, but not by way of
limitation, money markets, mutual funds, bonds, debentures, stocks (preferred or
W.F common) and other corporate obligations. Investments are carried at fair value at
September 30, 2014. Interest and dividend revenues are recorded as earned.
Purchases and sales of investments are recorded on the trade -date basis.
LJ Unrealized gains and losses are presented as net appreciation (depreciation) in fair
value of investments on the statement of changes in fiduciary net position along with
gains and losses realized on sales of investments.
j Given the inherent nature of investments, it is reasonably possible that changes in the
value of those investments will occur in the near term and that such changes could
materially affect the amounts reported (loss of principal).
EJ
Investment in all equity securities shall be limited to those listed on a major U.S. stock
.. exchange and limited to no more than 80% (at market) of the Plan's total asset
value. The equity position in any one company shall not exceed 5% of the Plan's total
assets at market. Investments in stock of foreign companies shall be limited to 25%
of the value of the Plan's total assets at market.
ED
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 27 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Investment Authorization, continued:
El fixed income portfolio shall be compromised of securities with a quality rating of
investment grade or higher by a major rating service. Except for Treasury and
Agency obligations, the debt portion of the Fund shall contain no more than 3% of a
given issuer irrespective of the number of differing issues.
a
The current target allocation at September 30, 2014, of these investments at market is as
follows:
Investment
Authorized Policy - Target
Investments Allocation %
Fixed Income 2040%
J
Domestic Equities 35 -55%
€=' ,
International Equities 10 -25%
Real Estate 0 -15%
1
International Fixed Income 0 -10%
Cash and Cash Equivalents N/A
Interest Rate Risk:
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to change in market interest rates. As a means of
limiting its exposure to interest rate risk, the Plan diversifies its investments by security
EJ
type and institution, and limits holdings in any one type of investment with any one
issuer with various durations of maturities.
Information about the sensitivity of the fair values of the Plan's fixed income
investments to market interest rate fluctuations is provided by the following table that
shows the distribution of the Plan's investment by maturity at September 30, 2014:
Investment Maturities (in years)
Investment Type Fair Value Less than 1 1 to 5 6 to 10 More than 10
Corporate bonds $ 6,893,105 $ 295,989 $ 2,647,058 $ 2,388,545 $ 1,561,513
Mutual funds 2,307,765 - 1,178,807 849,027 279,931
U.S, Agencies 3,506,133 - - - 3,506,133
U.S. Treasuries 1,396,314 - 1,166,712 - 229,602
M
$ 14,103,317 $ 295,989 $ 4,992,577 $ 3,237,572 $ 5,577,179
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 28 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Credit Risk:
Credit risk is the risk that a security or a portfolio will lose some or all of its value due
to a real or perceived change in the ability of the issuer to repay its debt. The Plan's
investment policy utilizes portfolio diversification in an effort to mitigate this risk,
The following table discloses credit rating by fixed income investment type at
['73
September 30, 2014, if applicable:
Fair Percentage of
Value Portfolio
U.S. government guaranteed* $ 4,902,447 10,15 %
Quality rating of credit risk debt securities
A $ 636,482 1.32 %
Al 703,203 1.46
A2 843,070 1.75
A3 1,006,420 2.08
Aa 391,397 0.81
E-30
Aal 19,668 0.04
Aa2 746,162 1.55
Aa3 237,086 0.49
L
Aaa 1,925,264 3.99
B 179,083 0.37
Baal 1,588,751 3.29
IJ
Baal 1,074,187 2.22
Baa.3 189,813 0.39
BB 211,853 0.44
BBB 570,018 1.18
I-A
Unrated 3,780,860 7.83
Total credit risk debt securities $ 14,103,317 39.36 %
Obligations of the U.S. government or obligations explicitly guaranteed by the U.S.
government are not considered to have credit risk and do not have purchase limitations.
Concentration of Credit Risk:
The investment policy of the Plan contains limitations on the amount that can be
invested in any one equity issuer as well as maximum portfolio allocation percentages.
There were no individual equity investments that represented 5% or more of Plan net
position at September 30, 2014. In addition, the Plan contains limitations on the
amount that can be invested in any one debt issuer, except for the debt securities
issued by the U.S. Government, There were no investments in non-U.S. Government
L]
debt securities that represented 10% or more of Plan net position at September 30,
2014.
L 3
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 29 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Custodial Credit Risk:
This is the risk that in the event of the failure of the counterparty, the plan will not be
able to recover the value of its investments or collateral securities that are in the
possession of an outside party. This risk is generally measured by the assignment of a
rating by a nationally recognized statistical rating organization. Consistent with the
Plan's investment policy, the investments are held by Plan's custodial bank and
registered in the Plan's name.
Foreign Currency Risk:
This is the risk that fluctuations in currency exchange rate may affect transactions
conducted in currencies other than US Dollars and the carrying value of foreign
investments. The Plan's exposure to foreign currency risk is derived mainly from its
investments in international equity and fixed income funds. The Plan owns shares in
international equity funds and does not own the individual securities. The investment
policy limits the foreign investments to no more than 25% of the Fund's investment
balance in equities and no more than 10% in fixed income. As of September 30,
2014, the foreign investments in these investment types were 17% and 6% of foreign
equities and fixed income, respectively, of total investments which was in compliance
with Board policy. The Plan's exposure to foreign currency risk related to foreign
equity funds is as follows:
Fair Percentage of
Value Portfolio
International equity funds and fixed income (bonds) S 9,613,556 4�rl
NOTE D - DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at December 31, 2014, are as follows:
Due from Due to
Fund Other Funds Other Funds
General Fund:
Impact Fee Fund $ 1,726,737 $ 2,130,705
Inspection Fee Fund 496,909 90,691
Total General Fund 2,223,646 2,221,396
Special Revenue Funds:
Impact Fee Fund
General Fund 2,130,705 1,726,737
Inspection Fee Fund
General Fund 90,691 496,909
Total Special Revenue Funds 2,221,396 2,223,646
Total $ 4.445,042 $ 4,445,042
Interfund receivables and payables were eliminated for presentation purposes in the
Statement of Net Position at December 31, 2014.
,,.:,;
go
r "3
i~<
L >w
E:'
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 30 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE E - CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the three months ended
December 31, 2014:
Total Capital Assets being
Depreciated, Net 10,474,439 597,293 (2,800) - 9,874,346
Capital Assets, Net $ 25,048,361 $ 1,178,456 $ 2,800 $ 26,224,017
Less: Capital Lease Payable (103,539)
Net investment in capital assets $ 26,120,478
Balance
Balance
October I
Increases/
Decreases/
Adjustments/ December 31
2014
Additions
Retirements
Reclassifications 2014
Capital Assets Not
Being Depreciated:
Land
$ 11,182,814
$ -
$ -
$ - $ 11,182,814
Construction in progress
3,391,108
1,775,749
-
- 5,166,857
Total Capital Assets Not
Being Depreciated
14,573,922
1,775,749
-
- 16,349,671
Capital Assets
Being Depreciated:
Assets held under capital lease
160,240
-
-
160,240
Buildings
12,580,450
24,812
- 12,605,262
Office equipment
685,400
4,028
689,428
Vehicles
7,844,231
608,022
(24,610)
8,427,643
Equipment & machinery
3,538,724
50.597
- 3,589,321
Total Capital Assets
Being Depreciated
24,809,045
687,459
(24,610)
- 25,471,894
Less Accumulated
Depreciation:
Assets held under capital lease
(37,835)
(26,707)
-
- (64,542)
Buildings
(5,357,821)
(391,456)
-
- (5,749,277)
Office equipment
(606,708)
(32,411)
-
- (639,119)
Vehicles
(6,126,769)
(479,720)
21,810
- (6,584,679)
Equipment & machinery
(2,205,473)
(354,458)
-
- (2,559,931)
Total Accumulated Depreciation
(14,334,606}
1,284 752
21,810
- (15,597,548
Total Capital Assets being
Depreciated, Net 10,474,439 597,293 (2,800) - 9,874,346
Capital Assets, Net $ 25,048,361 $ 1,178,456 $ 2,800 $ 26,224,017
Less: Capital Lease Payable (103,539)
Net investment in capital assets $ 26,120,478
i
f'
3
�i
'1
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 31 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE E - CAPITAL ASSETS ACTIVITY, CONTINUED
Depreciation expense was charged to the following functions during the three
month period ended December 31, 2014:
Amount
General Government
Total Depreciation Expense $1,284,752
NOTE F - LONG -TERM OBLIGATIONS
The following is a summary of changes in long -term obligations for the three months
ended December 31, 2014:
$ 2,805,357 $ 139,315 $ (8,012) $ 2,936,660 $ 24,303
The following is a summary of long -term obligations at December 31, 2014:
Amount
Net OPEB obligation. Cumulative difference between annual
OPEB cost and District payments toward the cost of post
employment benefits other than pensions since GASB No. 45
transition date of October 1, 2009. $1,175,205
$160,240 capital lease payable of a chest compression system to
financial institution over a 60 month period ending March 2018 in
equal payments of $2,671 at a zero stated interest rate. 103,539
Balance
Retirements
Balance
Amounts
October 1
And
December 31
Due Within
2014
Additions Adjustments
2014
One Year
Net OPEB obligation
$ 1,125,205
$ 50,000 $ -
$ 1,175,205
$ -
Capital Lease
111,551
- (8,012)
103,539
24,303
Compensated Absences
1.568.601
89.315 -
1,657,916
-
$ 2,805,357 $ 139,315 $ (8,012) $ 2,936,660 $ 24,303
The following is a summary of long -term obligations at December 31, 2014:
Amount
Net OPEB obligation. Cumulative difference between annual
OPEB cost and District payments toward the cost of post
employment benefits other than pensions since GASB No. 45
transition date of October 1, 2009. $1,175,205
$160,240 capital lease payable of a chest compression system to
financial institution over a 60 month period ending March 2018 in
equal payments of $2,671 at a zero stated interest rate. 103,539
U
..,
L
v
.,
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 32 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE F - LONG -TERM OBLIGATIONS, CONTINUED
Non - current portion of compensated absences. Employees of the
District are entitled to paid vacation based on length of service and
job classification. 1,657,916
2,936,660
Less Current Portion 24,303
$ 2,912,357
The annual debt service requirements at December 31, 2014, were as follows:
Years Ending Capital Leases Payable (1) Total
September 30 Principal Principal
2015 $ 24,303 $ 24,303
2016 32,315 32,315
2017 32,315 32,315
2018 14,606 14,606
$ 103,539 103,539
Net OPEB obligation 1,175,205
Compensated absences 1,657,916
Total long -term debt $ 2,936,660
(1) Debt service paid through General Fund
Interest expense for the three months ended December 31, 2014, was $0.
NOTE G - RETIREMENT PLANS
The following three retirement plans have been established by the District:
Plan 1 - Florida Retirement System (FRS)
Plan 2 - Firefighters' Pension Trust Fund (Florida Statute 175)
Plan 3 - 401(a) Plan
Employee participation in a specific plan is based on the respective employee's
original hire date.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 33 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
r
Plan 1 - Plan Description and Provisions - Florida Retirement System
All District certified firefighters employed prior to January 1, 1996 and all other
District personnel (other than certified firefighters) including the Board of
Commissioners, hired on or after January 1, 1996, are participants in the statewide
Florida Retirement System (FRS) under the Authority of Article X, Section 14 of the
State Constitution and Florida Statutes, Chapters 112 and 121. The FRS Plan (the
"Plan") was noncontributory prior to July 1, 2011. Beginning July 1, 2011, FRS
required a 3% of eligible compensation employee contribution for all classes of
employees except for those enrolled in the DROP program, which requires no
employee contribution. The FRS is totally administered by the State of Florida. The
;H District contributed 100% of the required contributions for the three months ended
December 31, 2014 and years ended September 30, 2014, 2013 and 2012. The
District's covered payroll for the three months ended December 31, 2014 was
$1,044,101.The District's covered payroll for the years ended September 30, 2014,
2013 and 2012 was 4,360,282, $4,285,887 and $4,706,793, respectively. The
District's contributions to the Plan for the three months ended December 31, 2014
.::1
were $160,035 which represents 15% of covered payroll. The District's
contributions to the Plan for the years ended September 30, 2014, 2013 and 2012
... was $689,716, $573,479 and $556,815, respectively, which represents 16 %, 13%
and 12 %, respectively, of covered payroll. Pension costs for the District ranged
between 7.37% to 43.24% for the three months ended December 31, 2014.
Employees, enrolled prior to July 1, 2011, who retire at or after age 62 with 6 years
of creditable service (6 years for elected state officials), 6 years of senior
management service and age 62, 6 years of special risk service and age 55, or 30
years of service (25 for special risk) regardless of age, are entitled to a retirement
;;F benefit, payable for life, equal to 1.6% to 3.0% per year of creditable service,
depending on the class of employee (regular, special risk, etc.) based on average final
compensation of the five (5) highest fiscal years' compensation. Benefit cannot
w. exceed 100% of average final compensation.
P Employees, enrolled on or after July 1, 2011, who retire at or after age 65 with 8
years of creditable service, 8 years of senior management service and age 65, 8 years
of special risk service and age 60, or 33 years of service (30 for special risk)
L..< regardless of age, are entitled to a retirement benefit, payable for life, equal to 1.6%
to 3.0% per year of creditable service, depending on the class of employee (regular,
.... NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 34 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 1 - Plan Description and Provisions - Florida Retirement System, continued
special risk, etc.) based on average final compensation of the eight (8) highest fiscal
„_, years' compensation. Benefit cannot exceed 100% of average final compensation.
Benefits vest after six years of creditable service for those enrolled prior to July 1,
2011, and after eight years for those enrolled on or after July 1, 2011. Vested
employees may retire anytime after vesting and incur a 5% benefit reduction for each
year prior to normal retirement age.
Early retirement, disability, death and survivor benefits are also offered. Benefits are
established by State Statute. The Plan provides for a constant 3% cost -of- living
adjustment for retirees for service earned prior to July 1, 2011.
The Plan also provides several other Plan and/or investment options that may be
s elected by the employee. Each offers specific contribution and benefit options. The
--6 Plan documents should be referenced for complete detail.
j
Description of Funding Policy - This is a cost sharing, multi - employer defined
benefit plan available to governmental units within the State. Actuarial information
with respect to an individual participating entity is not available. Participating
employers are required, by Statute, to pay monthly contributions at actuarially
determined rates that, expressed as percentages of annual covered payroll, are
adequate to accumulate sufficient assets to pay benefits when due.
Trend Information - A copy of the FRS's June 30, 2014 annual report can be
obtained by writing the Florida Division of Retirement, Cedars Executive Center,
2639 -C North Monroe Street, Tallahassee, Florida 32399 -1560, or by calling (850)
488 -5706.
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund
I No actuarial study or independent audit was performed for the Firefighters' Pension
Trust Fund for the three month period ended December 31, 2014 as it was not
considered a prudent use of Plan assets by the Plan's Board of Trustees. The Plan
will be audited for the year ending September 30, 2015. As such, the independent
auditor's opinion as to the pension trust fund at December 31, 2014 has been
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 35 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued
disclaimed. Below condensed audited financial information, excerpted from the
;ht
Plan's audited financial statements, is presented as of and for the year ended
September 30, 2014 for the PIan:
During the year ended September 30, 2009, the Plan adopted Governmental
Accounting Standards Board (GASB) Statement Number 50 "Pension Disclosures"
(GASB 50) which amends GASB Statements Number 25 "Financial Reporting for
Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans ",
and Number 27 "Accounting for Pensions by State and Local Government
Employers ". GASB 50 requires disclosure in the notes to the financial statements of
pension plans and certain employer governments of the current funded status of the
Amount
Total Plan Assets $ 49,352,828
Total Plan Liabilities (163,257)
Net Position $ 49,189,571
a
Total Revenue (Additions) $ 7,219,735
4
Total Expenses (Deductions) (176,220)
-'
Increase in Net Position 7,043,515
Beginning Net Position 42,146,056
Ending Net Position $ 49,189,571
N,
A copy of the Plan and Plan audit as of and for September 30, 2014 can be obtained
by writing to the District at 1885 Veterans Park Drive, Naples, Florida 34109 -0492,
or by calling (239) 597 -3222.
The following brief description of the North Naples Fire Control and Rescue District
Firefighters' Pension Plan (the "Plan") is provided for general information purposes
only. Participants should refer to the plan agreement for a more complete description
of the Plan. On July 11, 1996, under the authority of Florida Statute 175 and Laws
of Florida, Chapter 95 -338, the District's Board of Commissioners passed
Resolutions 96 -004 and 96 -005, providing for the establishment and funding of a
single employer defined benefit retirement plan and trust for newly hired fire
suppression personnel. The resolutions establish that certified firefighters hired
on or after January 1, 1996 are to become participants in the District's Firefighters'
Pension Trust Fund. The Plan is totally administered, including all investment
management, by a third party administrator and the Plan's appointed Pension Board.
During the year ended September 30, 2009, the Plan adopted Governmental
Accounting Standards Board (GASB) Statement Number 50 "Pension Disclosures"
(GASB 50) which amends GASB Statements Number 25 "Financial Reporting for
Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans ",
and Number 27 "Accounting for Pensions by State and Local Government
Employers ". GASB 50 requires disclosure in the notes to the financial statements of
pension plans and certain employer governments of the current funded status of the
j
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 36 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
EJ
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
,ry plan and other actuarial information. The adoptions of GASB 50 had an impact on
the presentation of the notes to the financial statements but had no impact on the
Plan's net position held for Plan benefits.
Effective October 1, 2011, employee participants were required to contribute 3%
(similar to FRS) of compensation (an increase from .5% of compensation) per
Resolution 11 -031.
During the three months ended December 31, 2014 there were employee
contributions in the amount of $66,087 to the plan. During the years ended
September 30, 2014, 2013, and 2012, there were employee contributions in the
amounts of $263,115, $252,053, and $246,691, respectively, to the plan. The
employer contributed 100% of its required contributions, as well as those required
contributions of the participating firefighters (0.5% pick -up).
Ll
The Plan provides for full -time firefighting personnel to become eligible to participate
L in the Plan immediately upon hire. Under District resolution 96 -005, the District
elected to pay the 0.5% (1% prior to December 9, 2004) employee required
"] contribution on behalf of the employee. Effective December 9, 2004, the employee
contribution was reduced to 0.5% (employee pick up). Effective July 1, 2001 (per
resolution 01 -01), benefits under the Plan vest after six years of creditable service.
Employees who elect normal retirement at or after age 55 with 6 years of creditable
service, or 25 years of service regardless of age, are entitled to a retirement benefit.
Effective October 1, 2011, required employee contributions increased to 3% of
compensation. Employees may elect early retirement after 6 years of creditable
service with a reduction in benefit not to exceed 3% for each year before normal
retirement. The Plan also includes certain disability and death benefits.
Contributions - Contributions to the Plan are derived from three sources:
''`'' the plan's participants are required to contribute to the plan in the amount of 3% of
their covered wages and pursuant to resolution 11 -031 the District has elected to
increase the affected employees' salary by 0.5% (employer pick -up), State funds
[ (fire [hazard] insurance premium tax per Florida Statute Chapter 175) and employer
U (remaining amount necessary to meet actuarial requirement). For the period from
In
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 37 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
L
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
f..,: continued
January 1, 1996 through September 30, 1996, no employer contributions were
required. Employer contributions were required beginning October 1, 1996. The
State contributions under Chapter 175 began in June 1997. This revenue is based on
property fire insurance premiums paid within the District and is applied up to an
approved "frozen" limit of $ 1,746,716. The District (employer) is required to fund
the difference each year between the total contributions from all other sources for the
year and the total cost for the year pursuant to the most recent actuarial valuation of
the Plan. The total cost for any year equals total normal cost plus the additional
amounts sufficient to amortize the unfunded past service liability over a 30 year period
commencing the first year of the Plan's inception.
1 Pursuant to the actuarial study dated October 1, 2013 for the year ended September
30, 2014, the District's contribution (District only) requirement was 13% of the
actuarially determined covered payroll. Actual District contributions to the Plan for
r A the three months ended December 31, 2014 were $289,237. Actual District
contributions to the Plan for the year ended September 30, 2014, were $1,518,926.
The State contributions for the year ended September 30, 2014 were $1,377,098.
Employees contributed (3 %) $263,115 to the Plan for the year ended September 30,
2014. At October 1, 2014, $49,189,571 the Plan's total net position was restricted
for retiree benefits.
" Pension Benefits - Effective July 1, 2001, employees with 6 or more years of
service are entitled to monthly pension benefits, beginning at the earlier of age 55 with
6 years of credited service or 25 years credited service regardless of age. Benefit is
equal to 3.53% of their average final compensation (AFC) times credited service
prior to October 1, 2010 plus 3% of average final compensation times credited
service on and after October 1, 2010. AFC means the average of the highest five (5)
years within the last ten (10) years of service. Maximum benefit is 100% of AFC.
The plan permits early retirement at age 50 with 6 years of credited service.
Employees may elect to receive their pension benefits in the form of a 10 year certain
and life annuity. If employees terminate before rendering 6 years of credited service,
they forfeit the right to receive the portion of their accumulated plan benefits.
All retirement benefits are annually increased for cost of living at 3 %.
E
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 38 of 69
NOTES TO THE FINANCIAL STATEMENTS
f .r
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
Supplemental Benefits - Effective December 31, 2004, each service and
disability retiree and their joint pensioners or beneficiaries and vested terminated
members shall receive a supplemental payment to be used as a health insurance
subsidy payment. The amount shall be five dollars ($5) for each full year of credited
service for life. The maximum monthly supplement is one hundred fifty dollars ($150)
LIJ and the minimum thirty dollars ($30).
Plan 2 - Plan Descriution and Provisions - Firefighters' Pension Trust Fund
continued
Death and Disability Benefits - Upon the death of any vested member,
whether or not still in active employment, a survivor benefit is payable to the
!
beneficiary starting when the member would have reached retirement age. The
IJ
benefit is equal to the vested pension benefit and is payable for 10 years. A spousal
and/or minor benefit is provided for line of duty death equal to a minimum of one
E-71
half of the members salary for life (spouse) or age 18 (child).
Employees who become totally disabled with at least 8 years of credited service
`
receive the greater of the accrued pension benefit or 25% of AFC, if non - service
Ll
incurred, or 42% of AFC, if active service incurred. Effective December 9, 2004,
the active service related benefit was increased to 65 %.
Supplemental Benefits - Effective December 31, 2004, each service and
disability retiree and their joint pensioners or beneficiaries and vested terminated
members shall receive a supplemental payment to be used as a health insurance
subsidy payment. The amount shall be five dollars ($5) for each full year of credited
service for life. The maximum monthly supplement is one hundred fifty dollars ($150)
LIJ and the minimum thirty dollars ($30).
DROP - Effective December 12, 2013, Resolution 13 -034 was adopted, which
established a Deferred Retirement Option Plan "DROP ". An "eligible participant" of
the pension plan, which is defined as an individual currently on full -time work status,
may elect to participate in the DROP on the first day of the month coincident with or
next following either, attainment of age fifty -five (5 5) and the completion of ten (10)
years of credited service, or the completion of twenty -five (25) years of credited
service, which date shall constitute the "initial date of eligibility". An eligible
participant electing to participate in DROP must complete and execute such forms as
may be required by the District and supplied by the Board of Trustees not less than
thirty (30) days prior to entering the DROP. The forms shall include, but not limited
Ll
to, an irrevocable letter of resignation effective no later than the conclusion of the
maximum period of DROP participation. Election into the DROP is irrevocable
provided there shall be no minimum period of participation; however in the event of a
voluntary termination prior to the maximum period, any DROP participant termination
prior to such maximum DROP period shall submit a written notice at least thirty (30)
days prior to such early termination of DROP participation.
11
L,
Liw a
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 39 of 69
NOTES TO THE FINANCIAL STATEMENTS
Li December 31,2014
L.4 NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2-Plan Description and Provisions-Firefighters' Pension Trust Fund,
°.I continued
An eligible participant may elect to participate in the DROP only once. After
commencement of participation in DROP, a participant shall no longer earn, accrue or
purchase additional service credits towards retirement benefits or later enhancements
to the firefighters'pension plan.
Upon the effective date of an eligible participant's participation in DROP, all
contributions by and on behalf of the participant to the plan shall be discontinued.
For all plan purposes, service and vesting credits of an eligible participant electing
t '' DROP shall be fixed as of the effective date of commencement of DROP
participation. Any services as a firefighter after entry into DROP shall not be used
for calculation or determination of benefits payable by the pension plan. The average
final compensation of a participant, as deemed in this plan shall be determined as of the
effective date of commencement of DROP participation and other subsequent earning
shall not be used for calculation or determination of benefits payable by the pension
plan.
:.s Income Recognition -Interest income is recorded on the accrual basis. Investments
are reported at market value. Short-term investments are reported at cost,which
approximates market value.
w
Actuarial Present Value of Accumulated Plan Benefits-Accumulated plan
benefits are those future periodic payments, including lump-sum distributions,that
are attributable under the Plan's provisions to the service employees have rendered.
Accumulated plan benefits include benefits expected to be paid to (a)retired or
terminated employees or their beneficiaries, (b)beneficiaries of employees who have
died, and(c)present employees or their beneficiaries. Benefits under the Plan are
based on employees'age at entry to the Plan and are based upon the current starting
„a' salary for firefighters at entry level. Benefits payable under all circumstances,
retirement, death,disability and termination of employment, are included,to the
extent they are deemed attributable to employee service rendered to the valuation
date.
The actuarial present value of accumulated plan benefits is determined by an actuary
and is the amount that results from applying actuarial assumptions to adjust the
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 40 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2-Plan Description and Provisions-Firefighters' Pension Trust Fund,
continued
accumulated plan benefits to reflect the time value of money(through discounts for
interest)and the probability of payment(by means of decrements such as for death,
disability,withdrawal, or retirement)between the valuation date and the expected
date of payment. The significant actuarial assumptions used in the valuations as of
October 1, 2010 were (a)life expectancy of participants-RP 2000 (combined
healthy, sex distinct)Mortality Table was used, (b)retirement age assumptions (the
assumed average retirement age was 55), and(c)annual investment return of 8%.
Li October 1,2012 actuarial valuation reflected assumed average rates of return of
8%. The foregoing actuarial assumptions are based on the presumption that the Plan
will continue. If the Plan terminated, different actuarial assumptions and other factors
might be applicable in determining the actuarial present value of accumulated plan
benefits.
Payment of Benefits -Benefit payments to participants are recorded upon
distribution. The District contributed 100%of the required contributions. A summary
of certain Plan details and trend information is included below.
A copy of the Plan and Plan audit as of and for September 30,2014 can be
Li obtained by writing to the District at 1885 Veterans Park Drive,Naples,Florida
34109-0492, or by calling (239) 597-3222.
The following is a summary of the Single Employer-Defined Benefits Plan(Florida
Statutes Chapter#175), including funding policies,contribution methods,benefit
provisions and trend information:
U Firefighters'Pension
Trust Fund-Plan 2
Year established and District Resolution 96-004(July 11,
governing authority 1996)
Governing body Board of Trustees of Plan
Determination of contribution
requirements: Actuarially determined
Employer(District) Amount required in excess of Member and
f, applicable State contributions needed in
order to pay current costs and amortize any
unfunded past service cost over 30 years
Plan members 3.0%of covered payroll
U
LA
U
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 41 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE G - RETIREMENT PLANS,CONTINUED
.,
Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund,
continued
Firefighters'Pension
Trust Fund-Plan 2
Funding of administrative
costs Employer
Period required to vest 6 years
Annual salary increase 6%
Post retirement benefit
increase Cost of living increase of 3%
each year
Eligibility for distribution
(Normal retirement) Earlier of 55 with 6 years of credited
service or 25 years credited service
regardless of age
Provisions for:
LI Disability benefits Yes
Death benefits Yes
1 Early retirement Yes
Assumed inflation Actuarial cost method
3%
LI Net Pension Liability of the Fund-The components of the net pension
liability of the District at September 30,2014:
Amount
Total pension liability $ 47,467,581
Plan fiduciary net position (49,189,564)
El
District's net pension asset $ 1,721,983
Plan fiduciary net position as a percentage of the
total pension asset 104%
.�1
€ s
L..A
it
E.
l
I..
1,µ
v
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 42 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Rate of Return Sensitivity Analysis -
1% Current
Decrease (7.0 %) Discount Rate 1% Increase (9.0 %)
Net pension liability (asset) $ 6,144,253 $ (1,721,983) $ (8,155,341)
Memberships of the Plan consisted of the following at September 30, 2014:
Firefighters' Pension
Trust Fund - Plan 2
Active plan participants 109
Retirees and beneficiaries
receiving benefits 3
Total 112
Number of participating employers 1
Number of participating state agencies l
Annual Pension Cost. Net Pension Obligation and Reserves
Current year annual pension costs for the Firefighters' Pension Trust Fund are shown
in the trend information provided. The Firefighters' Pension Trust Fund had a net
unfunded actuarial accrued liability (asset/over funded) at October 1, 2014 of
($1,721,983).
The Plan assets are legally reserved for the payment of the respective plan member
benefits within the Plan. There are no assets legally restricted for plan benefits other
than these assets within the Plan. The Firefighters' Pension Trust Fund held certain
investments at year end.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
Page 43 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description
and Provisions - Firefighters' Pension Trust Fund,
continued
Trend Information
Firefighters'
Pension Trust Fund
Total (1)
Required
Actual Contributions
Net
Annual
District
State
State (2)
Pension
Fiscal Pension
Required
Required
Frozen
Actual
Percentage Obligation
Year Contribution
Contribution
Contribution
Contribution
Contribution
Contributed (NPO)
2014 $ 2,896,024
$ 1,518,926
$ 1,377,098
$1,746,716
$ 2,896,024
104% -
2013 $ 3,386,733
$ 2,127,828
$ 1,314,064
$1,746,716
$ 3,441,892
102% -
1:"
2012 $ 3,283,811
$ 2,166,246
$ 1,214,214
$1,746,716
$ 3,380,454
103% -
2011 $ 3,473,598
$ 2,333,799
$ 1,139,799
$1,746,716
$ 3,626,125
104% -
2010 $ 3,190,997
$ 2,170,443
$ 1,020,554
$1,746,716
$ 3,200,901
100% -
�"
2009 $ 2,796,158
$ 1,756,228
$ 1,039,931
$1,746,716
$ 3,079,738
110% -
2008 $ 2,211,933
$ 1,009,715
$ 1,485,798
$1,485,798
$ 2,495,513
113% -
2007 $ 2,132,248
$ 2,019,430
$ 1,390,449
$ 112,818
$ 2,132,248
100% -
2006 $ 1,178,959
$ 1,066,141
$ 733,516
$ 112,818
$ 1,178,959
100% -
2005 $ 1,000,009
$ 887,191
$ 608,709
$ 112,818
$ 1,000,009
100% -
(1) The District considers its annual
pension cost
to be its actuarially determined required
t ,a
annual pension
contribution including the employer
and state contribution.
Lj
(2) The Plan's State frozen limit for 2014, 2013 and 2012 was $1,746,716.
Pension Trust Required Supplementary Information
'
Schedule of Funding
Progress Firefighters' Pension Plan:
Unfunded
Actuarial
Actuarial
Actuarial
UAAL as a
Value of
Accrued
Accrued
Annual
Percentage of
Actuarial Assets
Liability (AAL)
Liability
Funded
Covered
Covered
")
Valuation (AVA)
-Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date (a)
(b)
(b -a)
(a/b)
(c)
(b -a)/c
10/01/14 $49,189,571
$47,467,581
$(1,721,990)
103.6%
$ 8,770,495
-19.6%
10/01/13 $42,143,137
$41,366,768
$ (776,369)
101.9%
$ 9,092,235
-8.5%
10/01/12 $33,983,491
$33,924,855
$ (58,636)
100.2%
$ 8,254,150
-0.7%
10/01/11 $26,196,164
$26,153,965
$ (42,199)
100.2%
$ 8,291,830
-0.5%
10/01/10 $22,990,534
$23,284,830
$ 294,296
98.7%
$ 7,737,940
3.8%
10/01/09 $17,833,111
$18,108,267
$ 275,156
98.5%
$ 7,522,834
3.7%
10/01/08 $16,719,426
$16,890,153
$ 170,727
99.0%
$ 7,082,194
2.4%
10/01/07 $12,904,948
$12,884,785
$ (20,163)
100.2%
$ 7,276,954
-0.3%
10 /01/06 $ 8,572,161
$ 9,025,001
$ 452,840
95.0%
$ 5,960,908
7.6%
10101105 $ 6,322,176
$ 6,783,798
$ 461,622
93.2%
$ 3,815,952
12.1%
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 44 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefiehters' Pension Trust Fund
continued
Plan 3 - Plan Description and Provisions - 401(a)
The Board of Fire Commissioners established the 401(a) Plan for the general
employees and elected officials who are ineligible to participate in the Florida
Retirement System. The Plan was effective on January 1, 2013. At December 31,
2014, the Plan had three (3) active participants.
The plans allows for employer contributions. Amounts contributed by the employer
correspond to the percentage of contributions by class, established for participants
of the Florida Retirement System. Employee contributions are prohibited.
Employer contributions are 100% vested after completion of one year of service. A
year of service is based on an employee completing at least 1,000 hours of service
during a plan year.
Total District contributions to the Plan for the three months ended December 31, 2014 were
$1,217.
Firefighters' Pension
Trust Fund
Valuation date
10/01/13
Actuarial cost method
Frozen Entry Age
Amortization method
Level dollar, closed
Mortality table
RP2000
Remaining amortization period
27 years (as of 10/1/13)
Actuarial asset valuation method
Market
Actuarial assumptions:
Investment rate
8%
Projected salary increase*
6%
*Includes inflation at
3%
Post retirement cost of living
adjustment
3%
Plan 3 - Plan Description and Provisions - 401(a)
The Board of Fire Commissioners established the 401(a) Plan for the general
employees and elected officials who are ineligible to participate in the Florida
Retirement System. The Plan was effective on January 1, 2013. At December 31,
2014, the Plan had three (3) active participants.
The plans allows for employer contributions. Amounts contributed by the employer
correspond to the percentage of contributions by class, established for participants
of the Florida Retirement System. Employee contributions are prohibited.
Employer contributions are 100% vested after completion of one year of service. A
year of service is based on an employee completing at least 1,000 hours of service
during a plan year.
Total District contributions to the Plan for the three months ended December 31, 2014 were
$1,217.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 45 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE H - POST - EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB)
E-13
The District formally established two (2) OPEB Plans to provide its retirees the
LJI
opportunity to obtain insurance (health and life) benefits. The year ended September
30, 2010, was the District's transition year. As such, the District implemented GASB
.
No. 45 on a prospective basis. All retired full -time employees are eligible for OPEB
benefits if actively employed by the District immediately before retirement. As such,
--
active employees with at least twenty five (25) years of service as of September 30,
2010 were allowed to elect to remain in the Defined Benefit Plan or to enter the Post
Employment Health Plan (PEHP), a defined contribution plan. All retirees and Early
Ej
Retirement Incentive Program (ERIP) participants, who were eligible, remained in the
Defined Benefit Plan. All other active employees at that time, September 30, 2010,
as well as future employees entered the PEHP.
The benefits are provided both with and without contractual or labor agreements.
The benefits may require contribution from the retirees, depending on certain
specified criteria and, in particular, length of creditable employment. The District
finances the benefits on a pay -as- you -go basis and recognizes expenditures at the
.
time the premiums are due for both Plans.
Defined Benefit Plan
Specifically, the Defined Benefit Plan provides that the District will pay a portion of
medical and dental premiums for retirees depending on their years of credited service
starting with the completion of fifteen (15) years of credited service. As such, the
District pays 50% of the employee's premium and 25% of the spouse's premium at
completion of 15 years of service progressing to 100% of the employee's premium
and 50% of the spouse's premium upon completion of 25 years of service. The
LJ
District also pays the premium associated with a $5,000 life insurance benefit.
E-13
During fiscal years 2009 and 2010, the District offered two (2) separate Early
LJI
Retirement Incentive Programs (ERIP) to a number of active employees. A portion
of the programs includes full payment of premiums associated with medical, dental,
,..-
vision and life insurance coverage, including dependent coverage for a period of 3
years. After the 3 year period ends, the ERIP participants receive the Defined
Benefit Plan benefits they had been eligible for at termination. During the year ended
September 30, 2014, the District paid the final amounts due on the ERIP Plans.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 46 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE H - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Defined Benefit Plan, continued
Note that the projected premiums for the dental, and life benefits are assumed to
cover the entire cost of the program.
E31 Post Employment Health Plan (PEHP)
The PEHP is a defined contribution plan administered by the District.
All employees who did not elect to remain in the Defined Benefit Plan, and all
future active employees are participants in the PEHP.
Participants in the PEHP have $7,000 deposited on their behalf into a trust account
on the 20th anniversary of their date of hire and on each subsequent anniversary.
Additionally, those participants who have over 20 years of credited service at their
EU, date of retirement also receive a $30,000 deposit on their behalf at date of
separation. Effective October 1, 2012, the Plan was changed to limit District
El contributions to $50,000 per employee.
U113 The PEHP is designed to offer similar benefits to those offered under the Defined
Benefit Plan.
The District, as part of the PEHP, entered a group variable annuity contract. As
such, the PEHP Plan's asset custodian and third party administrator is the insurance
Ell company through which the annuity is contracted.
IJ
General - Funding Policy
The District paid $43,915 for retiree's and ERIP participants' health care premiums
E3
as part of the Defined Benefit Plan on a pay-as-you-go basis for the three months ended
December 31, 2014.
The District also contributed $42,000 to the PEHP Plan for the three months ended
December 31, 2014.
F"I'll
E34
MCI
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 47 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE H - POST - EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
General - Funding Policy, continued
No separate trust has been established for either Plan. No separate financial
statement is issued for either OPEB Plan. All required disclosures are presented
herein. The District obtained an actuarial valuation for its OPEB Plans to measure the
EJ current year's subsidies and project these subsidies into the future, making an
allocation of that cost to different years. The following schedule of funding progress
presents multi -year trend information about whether the actuarial value of plan assets
is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
Schedule of Funding Progress - Defined Benefit Plan
Unfunded
Actuarial (2) Actuarial UAAL as a
(1) Value of Actuarial Accrued Annual Percentage of
Actuarial Assets Accrued Liability Funded Covered Covered
Valuation (AVA) Liability (AAL) (UAAL) Ratio Payroll Payroll
t,..�
Date (a) (b) (b -a) (a/b) (c) (b -a) /c
Ll 10 /01/13 $ - $ 3,477,741 $ 3,477,741 0.0% $ 328,225 1059.6%
10/01/12 $ - $ 3,343,982 $ 3,343,982 0.0% $ 1,057,211 316.3%
_i 10/01/11 $ - $ 6,882,021 $ 6,882,021 0.0% $ 1,057,211 651.0%
(1) - Initial actuarial valuation dated 10/1/09 (transition year)
(2) - The AAL reduction in 2012 was in part due to a change in certain actuarial assumptions but
substantially due to consideration given to the fact the District is funding the PEHP.
Schedule of Contributions from Emplpyer - Three Year Trend - Defined Benefit Plan
Expected Actual Percentage of
Year Annual Cash Cash Annual OPEB Net OPEB
Ended OPEB Cost Payment Payment Cost Obligation
09/30/14 $ 357,714 $ 69,781 $ 155,816 19.5% $ 1,125,205
09/30/13 $ 348,382 $ 64,612 $ 145,425 18.5% $ 923,308
09/30/12 $ 506,731 $ 308,114 $ 221,717 60.8% $ 639,538
For the three months ended December 31, 2014, the District estimated and recorded the increase in the Net
OPEB Obligation to be $50,000, therefore the recorded Net OPEB Obligation at December 31, 2014 was
$1,175,205.
Note: Actuarial projection for the PEHP is N/A
�F.3
ED
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 48 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE H - POST - EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
e}
Annual OPEB Cost and Net OPEB Obligation
The annual OPEB cost is the amount that was expensed in the current year. Since the
District's Defined Benefit Plan is unfunded, the offset to that expense comes from subsidies
paid on behalf of the current retirees and their dependents for the current year. This offset
is called the expected cash payment. The cumulative difference between the annual OPEB
cost for the year and the expected cash payment is called the net OPEB obligation
(NOO). The net OPEB obligation is reflected as a liability in the Statement of Net Position.
The following table shows the components of the District's annual OPEB cost for the year
Ell and the net OPEB obligation.
Three month period ended December 31, 2014
I'
Defined
:J
Benefit
Plan PEHP
Annual required contribution (ARC) $ 93,915 $ 42,000
Adjustment to ARC - -
i' wi
Plus interest on NOO - -
Annual OPEB cost 93,915 42,000
Annual Net contribution made (43,915) (42,000)
Expected cash payment 43,915 (42,000)
Yearly change in OPEB obligation 50,000
Net OPEB obligation - beginning of year 1,125,205 -
`„
Net OPEB obligation - end of year $ 1,175,205 $ -
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
!.
and assumptions about the probability of occurrence of events far into the future.
Examples include assumptions about future employment, mortality, and healthcare cost
trend. Amounts determined regarding the funding status of a 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.
EA
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 49 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE H - POST - EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
U (OPEB), CONTINUED
Actuarial Methods and Assumptions
". Projections of benefits for financial reporting purposes are based on the substantive
plans (the plans as understood by the employer and plan members) and include the
types of benefits provided at the time of the valuation and the historical pattern of
sharing of benefit costs between the employer and plan members. 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 valuation
of assets, consistent with the long -term perspective of the calculations.
- In the October 1, 2012 actuarial valuation, the Projected Unit Credit Unit cost
method with linear pro- ration to assumed benefit commencement was used. The
actuarial assumptions included a 4.0 percent investment rate of return. Since there
are no invested plan assets held in trust to finance the Defined Benefit Plan - OPEB
obligations, the investment return discount rate is the long -term expectation of
investment return on assets held in District funds pursuant to its investment policy. The
:.j assumptions also included an annual healthcare cost trend based on a graded
schedule beginning with 8.0 percent annually down to an ultimate rate of 5.0 percent
annually at ten years out and later. The unfunded actuarial accrued liability is being
amortized over an open period of 30 years as a level dollar amount. The funding
method is the projected unit credit method as noted above.
NOTE I - RISK MANAGEMENT
During the three months ended December 31, 2014, the District continued the use of
a high deductible health plan offered to employees and retirees. The District does not
offer vision coverage. The District also established a HSA plan for its employees.
The District contributes $5,000 for those eligible participants who have to meet the
family deductible and $3,000 for those eligible participants who have to meet the
individual deductible to the HSA plan annually. Participants may also elect to
contribute to the plan on a pre -tax basis. HSA amounts that are not utilized by the
year end are carried over and are the property of the participant per IRS regulation.
EJ
i
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 50 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE I - RISK MANAGEMENT, CONTINUED
The District incurred $1,041,245 in claims, third party administration costs, premiums
and reinsurance premiums including HSA contributions and workers compensation
insurance during the three months ended December 31, 2014, for the self - insurance
and fully- funded insurance programs.
It is the policy of the District to purchase third party commercial insurance for other
LJ remaining forms of potential risks to which it is exposed. The District's risk
management activities are reported in the General Fund. No accrual has been
recorded for claims and incidents not reported to the insurer. The District had no
significant reductions in insurance coverage from the prior year. Reported claims
- -- have not exceeded the insurance coverage for the year ended September 30, 2011
through December 31, 2014.
NOTE J - PROPERTY TAXES
Property taxes are levied after formal adoption of the District's budget and become
due and payable on November 1 of each year and are delinquent on April 1 of the
following year. Discounts on property taxes are allowed for payments made prior to
the April 1 delinquent date. Tax certificates are sold to the public for the full amount
of any unpaid taxes and must be sold not later than June 1 of each year. The billing,
collection, and related record keeping of all property taxes is performed for the
District by the Collier County Tax Collector. No accrual for the property tax levy
becoming due in November 2014 is included in the accompanying basic financial
statements, since such taxes are collected to finance expenditures of the subsequent
period.
Procedures for collecting delinquent taxes, including applicable tax certificate sales
and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is
approximately two years after taxes become delinquent and occurs only upon request
#.
of a holder of a delinquent tax certificate. As of December 31, 2014, $796,456 was
recorded in the General Fund and was due from the Collier County Tax Collector to
,v_
the District for ad valorem taxes and excess fees, and interest.
.b
Lj
In
L
Ej
"
ri
Ej
!.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 51 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE J - PROPERTY TAXES, CONTINUED
Important dates in the property tax cycle are as follows:
Assessment roll certified July 1
Millage resolution approved No later than 93 days following
certification of assessment roll.
Taxes due and payable (Levy date) November /with various discount
provisions through March 31.
Property taxes payable - maximum
discount (4 percent)
30 days after levy date
Beginning of fiscal year for which
taxes have been levied
October 1
Due date
March 31
Taxes become delinquent (lien date)
April 1
Tax certificates sold by the Collier
County Tax Collector
Prior to June I
For the year ended September 30, 2015,
the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of $.95 per $1,000 (.95 mills) of the 2014
net taxable value of real property located within the District.
Y
f
L ta1
°16 ,11
LA
.1
i....
1
D
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 52 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE K - FUND BALANCE/NET POSITION ALLOCATIONS
Fund Balance/Net Position were allocated for the following purposes at December
31,2014:
_ Nonspendable
Nonspendable fund balance - General Fund prepaid expenses
Nonspendable fund balance - Inspection Fee Fund prepaid expenses
Assiened fund balance - General Fund
General Fund - 2015 - Expenses - Oct - Dec
General Fund - Minimum operating reserve per policy
General Fund - Health insurance claim reserve
General Fund - Protective gear
General Fund - Vehicle replacement
General Fund - Fire equipment
General Fund - Emergency reserve
General Fund - Fire apparatus
General Fund - Community outreach
General Fund - Radio replacement
General Fund - Station improvements & equipment
General Fund - Station #46 improvements
Total General Fund
Unassigned - General Fund
General Fund - To fund the balance of operations - through
September 30, 2015
Restricted Fund Balance/Net Position
Inspection Fee Fund
Amount
$ 617,010
$ 37,500
Amount
$ 6,500,000
2,600,000
582,884
75,000
75,000
200,000
761,617
500,000
3,500
21,718
150,000
20,900
$ 11,490,619
Amount
$ 12,234,315
Amount
$ 6,708
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 53 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE L - IMPACT FEE FUND ACTIVITY, CONTINUED
During the three months ended December 31, 2014, the Impact Fee Fund had the
following activity:
Amount
Unearned revenue, October 1, 2014 $
Impact fee receipts 267,237
Interest income 161
Operating fees - collection fees (4,008)
Loan interest (8,661)
1 Miscellaneous (52)
Capital outlay (1,775,749)
Transfers in 1,521,072
Unearned revenue, December 31, 2014 $ -
* Included in due from other funds,
NOTE M - COMMITMENTS AND CONTINGENCIES
The District is involved from time to time in certain routine litigation, the substance
of which either as liabilities or recoveries, would not materially affect the financial
position of the District. Although the final outcome of the lawsuits, assertions, and
claims or the exact amount of costs and/or potential recovery is not presently
determinable, in the opinion of the District's legal counsel, the resolution of these
matters will not have a materially adverse affect on the financial condition of the
District. As a general policy, the District plans to vigorously contest any such
matters.
On January 8, 2014, the District entered into an agreement for the construction of a
new fire station, Station #48. The contract was for $4,172,579 which was subject to
t j change. The balance remaining on the contract at December 31, 2014 was
$581,164. including applicable retainage. The cost of this project is to be financed
through the use of impact fees and a short-term loan from the General Fund, The
loan is to be repaid including interest of 2% by the Impact Fee Fund. The loan, due
to its short term nature is recorded as due to the General Fund. This project is
expected to be completed during the fiscal year ended September 30, 2015.
s
LNG
]
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 54 of 69
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
NOTE N - SUBSEQUENT EVENT AND MERGER OF THE DISTRICT
On February 6, 2014, the District entered into an Interlocal Agreement with Big
Corkscrew Island Fire Control and Rescue District to consolidate administration. At
the same time, each District's Board adopted a resolution identifying their intent to
initiate the voluntary merger process pursuant to Florida Statute Chapter 189.074.
i The two Districts then created a proposed Joint Merger Plan which was adopted by
s
both Boards and ultimately put before the voters of each District by referendum. On
November 4, 2014, voters from both districts approved the referendum to merge the
LJ two districts into one. These financial statements reflect the final three months activity
of the North Naples Fire Control and Rescue District. The Board of the District
In elected to delay implementation of GASB Statement No. 68 "Accounting and
Financial Reporting for Pensions - An Amendment of GASB Statement No. 27" for
`` efficiency purposes and cost savings until the fiscal year end of the North Collier Fire
In Control and Rescue District at September 30, 2015.
E
Likewise, the Board of Trustees of the North Naples Fire Control and Rescue
L
District Firefighters' Pension Plan elected not to have the three months activity of the
Plan audited at December 31, 2014 but rather have the Plan's activity audited at its
September 30, 2015 fiscal year end. As of January 1, 2015, the name of the Plan
was changed to the North Collier Fire Control and Rescue District Firefighters'
Pension Plan to reflect the merger of the two districts.
On January 1, 2015, the North Collier Fire Control and Rescue District was officially
formed by merging the two Districts. There is no affect from the merger, however,
reflected in these financial statements. As such, no amounts are due to or from either
District at December 31, 2014. Likewise, no amounts were transferred to or from
the two Districts during the three months ended December 31, 2014. As of January
1, 2015, the assets, liabilities and net position of this District was transferred to the
North Collier Fire Control and Rescue District. The Districts will report as one
District thereafter.
"
The North Collier Fire Control and Rescue District encompasses 264 square miles
and includes the original boundaries of the two service delivery areas, the Big
Corkscrew Island Service Delivery Area and the North Naples Service Delivery
Areas.
�
�
�
�
�
�
�
{�
�
�
Ed
�
E
is
Lj
El
Ell,
�
.�
�
�}
�
\}
�
�
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
r-
E-
1-
E
t:... -1
�ww,)
,
El
ri
Q
..
E
.,.�
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND -
SUMMARY STATEMENT
Three Months ended December 31, 2014
REVENUES
Ad Valorem taxes
Intergovernmental revenue:
State firefighter supplement
Federal Grants
Charges for services
Miscellaneous:
Page 55 of 69
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
$ 21,867,901 $ 21,867,901 $ 19,069,782 $ (2,798,119)
9,610 9,610
587,444 587,444 79,848 (507,596)
Interest 70,000
70,000
18,254
(51,746)
Other 238,017
238,017
34,574
(203,443)
Subtotal - revenues 22,763,362
22,763,362
19,212,068
(3,551,294)
Cash brought forward 12,559,119
12,559,119
-
(12,559,119)
TOTAL REVENUES 35,322,481
35,322,481
19,212,068
(16,110,413)
EXPENDITURES
Current
Public safety
Personnel services
Operating expenditures
Capital outlay
Debt service:
19,411,454 19,411,454 5,034,127 14,377,327
3,319,860 3,319,860 1,033,637 2,286,223
1,068,500 1,068,500 687,459 381,041
Principal reduction 32,048 32,048 8,012 24,036
Interest and fiscal charges - - - -
Reserves 9,824,504 9,824,504 - 9,824,504
TOTAL EXPENDITURES 33,656,366 33,656,366 6,763,235 26,893,131
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 1,666,115 1,666,115 12,448,833 10,782,718
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets - - 1,795 1,795
Transfer out (1,666,115) (1,666,115) (1,521,072) 145,043
TOTAL OTHER FINANCING SOURCES
AND USES (1,666,115) (1,666,115) (1,519,277) 146,838
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ - $ - 10,929,556 $ 10,929,556
FUND BALANCE - Beginning 13,412,388
FUND BALANCE - Ending $ 24,341,944
The accompanying notes are an integral part of this statement.
t
i,;:?
-..J
"!
N
-
1
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 56 of 69
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT
Three Months ended December 31, 2014
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes
Intergovernmental revenue:
State firefighter supplement
Federal Grants
Charges for services
Miscellaneous:
Interest
Other
Subtotal - revenues
Cash brought forward
S 21,867,901 S 21,867,901 $ 19,069,782 S (2,798,119)
EXPENDTfURES
9,610
9,610
587,444
587,444
79,848
(507,596)
70,000
70,000
18,254
(51,746)
238,017
238,017
34,574
(203,443)
22,763,362
22,763,362
19,212,068
(3,551,294)
12,559,119
12,559,119
-
(12,559,119)
TOTAL REVENUES 35,322,481
35,322,481
19,212,068
(16,110,413)
EXPENDTfURES
Current
Public safety
Personnel services:
Salaries
Firefighters & Admin.
11,813,826
11,813,826
2,789,299
9,024,527
Commissioners
30,000
30,000
7,500
22,500
Overtime
568,332
568,332
219,290
349,042
Vacation
25,000
25,000
28,005
(3,005)
Sick leave
511,000
511,000
143,080
367,920
Incentives and holiday pay
510,094
510,094
169,677
340,417
Payroll taxes
Social Security
1,037,286
1,037,286
224,819
812,467
Benefits
Retirement
1,913,504
1,913,504
425,399
1,488,105
Health insurance
2,216,807
2,216,807
501,422
1,715,385
Disability insurance
71,155
71,155
19,047
52,108
Unemployment insurance
5,000
5,000
-
5,000
Workers compensation
396,450
396,450
221,118
175,332
Employee physicals
150,000
150,000
51,780
98,220
Post employment health plan
161,000
161,000
42,000
119,000
Health Savings Account Funding
-
-
190,407
(190,407),
Retirement recognition
2,000
2,000
1,284
716
Subtotal - Personnel services
19,411,454
19,411,454
5,034,127
14,377,327
The accompanying notes are an integral part of this statement.
LJ
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
Page 57 of 69
STATEMENT OF REVENUES, EXPENDITURES
AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT (CONTINUED)
Three Months ended December 31, 2014
General Fund
Variance
Original
Final
Favorable
Operating expenditures:
Budget
Budget Actual
(Unfavorable)
Insurance
300,000
300,000
68,948
231,052
Uniforms
73,500
73,500
8,538
64,962
Communications
10,000
10,000
1,276
8,724
Telephone
174,342
174,342
44,719
129,623
Utilities
215,700
215,700
52,795
162,905
Maintenance
Vehicle
307,500
307,500
99,104
208,396
Equipment
46,500
46,500
4,692
41,808
Computer
276,050
276,050
65,039
211,011
Hydrant
23,500
23,500
-
23,500
Building
303,651
303,651
78,195
225,456
Supplies
Office
37,000
37,000
13,284
23,716
-'
Protective gear
52,000
52,000
7,775
44,225
Station
32,000
32,000
10,498
21,502
Emergency medical
68,000
68,000
14,403
53,597
Hurricane/emergency
-
-
-
"
Equipment
Office
30,600
30,600
6,724
23,876
Fire
50,000
50,000
4,733
45,267
Shop
10,000
10,000
3,708
6,292
Warehousellogistics
1,000
1,000
869
131
Professional and other fees
Legal and professional
196,000
196,000
40,418
155,582
Property appraiser fees
205,000
205,000
22,653
182,347
Tax collector fees
441,557
441,557
381,865
59,692
Accounting
40,000
40,000
1,500
38,500
Miscellaneous
Travel
18,400
18,400
2,678
15,722
Water /sewer fee St. 44
5,000
5,000
-
5,000
Public information officer
3,000
3,000
-
3,000
Public education officer
3,323
(3,323)
Fuel and oil
244,000
244,000
51,355
192,645
Legal advertisements
5,500
5,500
1,721
3,779
Dues and subscriptions
8,210
8,210
5,275
2,935
CERT team
2,000
2,000
825
1,175
Dive team
6,950
6,950
239
6,711
Fire prevention
18,000
18,000
9,138
8,862
Training
88,500
88,500
23,040
65,460
Hazardous materials
8,100
8,100
314
7,786
Technical rescue
4,500
4,500
1,209
3,291
Boat team
3,800
3,800
1,474
2,326
K -9 search and rescue
-
-
-
Honor guard
OPS
Peer fitness
-
-
-
Miscellaneous
10,000
10,000
1,310
8,690
"
Operational Reserves
Contingency
-
-
-
Subtotal - Operating expenditures
3,319,860
3,319,860
1,033,637
2,286,223
The accompanying notes are an integral part of this statement.
El
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT
Page 58 of 69
"
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT
(CONTINUED)
Three Months ended December 31, 2014
General Fund
Variance
�
Original
Final
Favorable
Capital outlay: Budget
Budget Actual
(Unfavorable)
Land
-
-
-
j
Station improvements 153,000
153,000
24,812
128,188
Fire & rescue equipment 31,000
31,000
4,028
26,972
Protective gear 70,000
70,000
-
70,000
Communication equipment 25,000
25,000
2,999
22,001
Medical equipment 18,000
18,000
21,740
(3,740)
Computers 44,000
44,000
23,010
20,990
Fire replacement equipment -
-
-
Boat team 5,000
5,000
8,124
(3,124)
Vehicle purchase 244,500
244,500
102,846
141,654
Training equipment 3,000
3,000
3,000
Shop equipment -
-
-
Logistics /warehouse
-
Hazardous materials equip. -
-
-
Fire apparatus 475,000
475,000
499,900
(24,900)
Dive equipment -
-
-
-
Fire prevention
Subtotal - Capital outlay 1,068,500
1,068,500
687,459
381,041
Debt service:
Principal reduction 32,048
32,048
8,012
24,036
Interest and fiscal charges
Subtotal - Debt service 32,048
32,048
8,012
24,036
Reserves:
Reserves 9,824,504
9,824,504
-
9,824,504
TOTAL EXPENDITURES 33,656,366
33,656,366
6,763,235
26,893,131
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 1,666,115
1,666,115
12,448,833
10,782,718
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets -
1,795
1,795
Transfer out (1,666,115)
(1,666,115)
(1,521,072)
145,043
TOTAL OTHER FINANCING SOURCES AND USES (1,666,115)
(1,666,115) (1,519,277)
146,838
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES $
$
10,929,556
$ 10,929,556
FUND BALANCE - Beginning
13,412,388
FUND BALANCE - Ending
$
24,341,944
a
The accompanying notes are an integral part of this statement.
L.'
L ...
L
LJ
...
I- -.
t; J
1
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 59 of 69
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - IMPACT FEE FUND -
SUMMARY STATEMENT
Three Months ended December 31, 2014
Impact Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Fees:
Impact fees
$ 1,400,000
$ 1,400,000 $
267,237
$ (1,132,763)
Miscellaneous:
Interest
2,000
2,000
161
(1,839)
Other
-
-
-
-
Subtotal - revenues
1,402,000
1,402,000
267,398
(1,134,602)
Cash brought forward
(486,279)
(486,279)
-
486,279
TOTAL REVENUES
915,721
915,721
267,398
(648,323)
EXPENDITURES
Current
Public safety
Operating expenditures 21,000
Capital outlay 2,529,800
Debt service:
Interest 31,036
Reserves -
21,000 4,008 16,992
2,529,800 1,775,749 754,051
31,036 8,713 22,323
TOTAL EXPENDITURES 2,581,836 2,581,836 1,788,470 793,366
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES (1,666,115} (1,666,115) (1,521,072) 145,043
OTHER FINANCING SOURCES
Transfers in 1,666,115 1,666,115 1,521,072 (145,043)
TOTAL OTHER FINANCING SOURCES
AND USES 1,666,115 1,666,115 1,521,072 (145,043)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ - $ - - $
FUND BALANCE - Beginning -
FUND BALANCE - Ending $ -
The accompanying notes are an integral part of this statement.
_.,S
IAw
Ll
«n
I. >.
1
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 60 of 69
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
IMPACT FEE FUND - DETAILED STATEMENT
Three Months ended December 31, 2014
Impact Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
2,000,000
2,000,000 1,775,749
224,251
Emergency signal- station #42
Fees:
360,000 -
360,000
Protective gear
19,800
Impact fees
$ 1,400,000
$ 1,400,000 $
267,237
$ (1,132,763)
Miscellaneous:
Subtotal - Capital outlay
2,529,800
2,529,800 1,775,749
754,051
Interest
2,000
2,000
161
(1,839)
Other
-
-
-
Subtotal - revenues
1,402,000
1,402,000
267,398
(1,134,602)
Cash brought forward
(486,279)
(486,279)
-
486,279
TOTAL REVENUES 915,721
915,721
267,398
(648,323)
EXPENDITURES
Miscellaneous:
Impact fee collection 21,000 21,000 4,008 16,992
Subtotal - Operating expenditures 21,000 21,000 4,008 16,992
Capital outlay
Station #48
2,000,000
2,000,000 1,775,749
224,251
Emergency signal- station #42
360,000
360,000 -
360,000
Protective gear
19,800
19,800
19,800
Equipment
150,000
150,000
150,000
Subtotal - Capital outlay
2,529,800
2,529,800 1,775,749
754,051
Debt service:
Interest
Reserves:
31,036 31,036 8,713 22,323
TOTAL EXPENDITURES 2,581,836 2,58836 1,788,470 793,366
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES (1,666,115) (1,666,115) (1,521,072) 145,043
OTHER FINANCING SOURCES
Transfers in 1,666,115 1,666,115 1,521,072 (145,043)
TOTAL OTHER FINANCING SOURCES
AND USES 1,666,115 1,666,115 1,521,072 (145,043)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES $ $ $
FUND BALANCE - Beginning
FUND BALANCE - Ending $
The accompanying notes are an integral part of this statement.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 61 of 69
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - INSPECTION FEE FUND -
SUMMARY STATEMENT
Three Months ended December 31, 2014
Inspection Fee Fund
Variance
Original Final Favorable
Budget Budget _ Actual (Unfavorable)
REVENUES
Charges for services
Inspection fees $
670,000 $
670,000 $
150,832
$ (519,168)
Plan review fees
550,000
550,000
173,993
(376,007)
Miscellaneous:
Interest
1,000
1,000
104
(896)
Subtotal - revenues
1,221,000
1,221,000
324,929
(896,071)
Cash brought forward
5,572
5,572
-
(5,572)
TOTAL REVENUES
1,226,572
1,226,572
324,929
(901,643)
EXPENDITURES
Current
Public safety
Personnel services
1,167,163
1,167,163
314,740
852,423
Operating expenditures
54,932
54,932
12,551
42,381
Capital outlay
-
Reserves
4,477
4,477
-
4,477
TOTAL EXPENDITURES
1,226,572
1,226,572
327,291
899,281
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES $
- $
(2,362)
$ (2,362)
FUND BALANCE - Beginning
9,070
FUND BALANCE - Ending
$
6,708
The accompanying notes are an integral part of this statement.
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 62 of 69
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
INSPECTION FEE FUND - DETAILED STATEMENT
Three Months ended December 31, 2014
Inspection Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Charges for services:
Inspection fees $
670,000 $
670,000 $
150,832
$ (519,168)
Plan review fees
550,000
550,000
173,993
(376,007)
Miscellaneous:
Interest
1,000
1,000
104
(896)
Subtotal - revenues
1,221,000
1,221,000
324,929
(896,071)
Cash brought forward
5,572
5,572
-
(5,572)
TOTAL REVENUES
1,226,572
1,226,572
324,929
(901,643)
EXPENDPPURES
Current
Public safety
Personnel services:
Salaries
Regular
859,373
859,373
224,992
634,381
Overtime
2,000
2,000
3,983
(1,983)
Professional/Incentives and holiday pay
9,000
9,000
2,100
6,900
Payroll taxes
Social Security
47,971
47,971
17,727
30,244
Benefits
Retirement
54,879
54,879
25,090
29,789
Health insurance
144,595
144,595
37,098
107,497
Disability insurance
8,845
8,845
-
8,845
Employee physicals
500
500
500
Sick leave
25,000
25,000
25,000
Vacation pay
-
-
Unemployment compensation
-
-
-
-
Workers compensation
15,000
15,000
3,750
11,250
Subtotal - Personnel services
1,167,163
1,167,163
314,740
852,423
The accompanying notes are an integral part of this statement.
L,11
L
El
13
Lj
.,:
1
R
i
NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT Page 63 of 69
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
INSPECTION FEE FUND - DETAILED STATEMENT (CONTINUED)
Three Months ended December 31, 2014
Capital outlay:
Office facility
Vehicles
Subtotal - Capital outlay
Debt service:
Principal reduction
Interest and fiscal charges
Subtotal - Debt service
Reserves:
4,477 4,477 4,477
TOTAL EXPENDITURES 1,226,572 1,226,572 327,291 899,281
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES $ $
FUND BALANCE - Beginning
FUND BALANCE - Ending
The accompanying notes are an integral part of this statement.
(2,362) $ (2,362)
9,070
5 6,708
Inspection Fee Fund
Variance
Original
Final
Favorable
Operating expenditures:
Budget
Budget Actual
(Unfavorable)
Uniforms
1,000
1,000
1,000
Telephone
1,000
1,000
1,000
Utilities
2,500
2,500 -
2,500
Rent
50,000
50,000 12,500
37,500
Maintenance
Contract labor
-
- -
Hydrant
'
Supplies
Office
432
432 51
381
Miscellaneous
Employee physicals
"
Dues & subscriptions
Fire prevention
Training
"
Miscellaneous
-
-
Subtotal - Operating expenditures
54,932
54,932 12,551
42,381
Capital outlay:
Office facility
Vehicles
Subtotal - Capital outlay
Debt service:
Principal reduction
Interest and fiscal charges
Subtotal - Debt service
Reserves:
4,477 4,477 4,477
TOTAL EXPENDITURES 1,226,572 1,226,572 327,291 899,281
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES $ $
FUND BALANCE - Beginning
FUND BALANCE - Ending
The accompanying notes are an integral part of this statement.
(2,362) $ (2,362)
9,070
5 6,708
ADDITIONAL REPORTS
i
tr,...�
Affiliations
TUSCAN Florida Insti lute of ( crtitied Public Accountant,
•- American Institute of Certified Public Accountants
l& Company) PA P, —Ic Comp: +nie. Practice Section
A
Tax Dig itiion
Certified Public Accountants & Consultants
Page 64 of 69
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE
-� AND OTHER MATTERS BASED ON AN AUDIT OF BASIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
t WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
North Naples Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109 -0492
■ We have audited, 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 of America, the basic financial
statements of the governmental activities and each major fund of North Naples Fire Control and
Rescue District (the "District ") as of and for the three months ended December 31, 2014, and the related
notes to the financial statements which collectively comprise the District's basic financial statements
as listed in the table of contents and have issued our report thereon dated August 10, 2015.
f,
t�
C Internal Control Over Financial Reporting
t J
In planning and performing our audit of the financial statements, we considered the District's
[A internal control over financial reporting (internal control) to determine the audit procedures that are
r -1 appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control. Accordingly, we do not express an opinion on the effectiveness of the District'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
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the basic 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
INTEGRITY ......... SERVICE ......... EXPERIENCE(
�, J 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333 -2090 • Fax: (239) 333 -2097
Page 65 of 69
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, as
defined previously. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether North Naples Fire Control and Rescue
District's financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance 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 internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District'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 District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
/,�� Imm p
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
August 10, 2015
r ' Affiliations
TUSCANFlorida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
I & Company, PA Private Companies Practice section
Tax Div Sion
t A Certified Public Accountants & Consultants
I
Page 66 of 69
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
Board of Commissioners
' North Naples Fire Control and Rescue District
E 1885 Veterans Park Drive
Naples, Florida 34109 -0492
L
We have examined North Naples Fire Control and Rescue District's compliance with Section
218.415, Florida Statutes, regarding the investment of public funds during the three months ended
December 31, 2014. Management is responsible for North Naples Fire Control and Rescue
District's compliance with those requirements. Our responsibility is to express an opinion on
North Naples Fire Control and Rescue District'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 about North Naples Fire Control and Rescue District'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 North Naples Fire Control and Rescue
District's compliance with specified requirements.
In our opinion, North Naples Fire Control and Rescue District complied, in all material respects,
with the aforementioned requirements for the three months ended December 31, 2014.
r�
This report is intended solely for the information and use of the North Naples Fire Control and
Rescue District and the Auditor General, State of Florida, and is not intended to be and should not
be used by anyone other than these specified parties.
P
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
�L August 10, 2015
INTEGRITY ......... SERVICE ......... EYPERIENCE'it
12621 World Plaza Lane, Building 55 - Fort Myers, FL 33907 • Phone: (239) 333 -2090 - Fax: (239) 333 -2097
Affiliations
r, TUSCAN Florida Institute of Certified Public Accountants
L_
American Institute of Certified Public Accountants
& Company, PA P, gate Companies Practice Seceon
Tax Division
Certified Publi c Accountants & Consultants
r,-)
Page 67 of 69
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
North Naples Fire Control and Rescue District
L ? 1885 Veterans Park Drive
Naples, Florida 34109 -0492
L ] We have audited the accompanying basic financial statements of North Naples Fire Control and
Rescue District (the "District ") as of and for the three months ended December 31, 2014 and have
x issued our report thereon dated August 10, 2015.
® 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 of America and Chapter
10.550, Rules of the Florida Auditor General. 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
and Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports, which
were dated August 10, 2015, should be considered in conjunction with this report to management.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter included the following information, which is not included in the aforementioned
auditor's report:
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. The prior year
report contained no financially significant comments.
f�
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. No such
recommendations were noted to improve financial management.
INTEGRITY ......... SERVICE ......... EYPERIENCElk
` 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333 -2090 • Fax: (239) 333 -2097
4;
I Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address
Page 68 of 69
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the District for the three months ended
December 31, 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 three months ended December 31, 2014. In connection with our audit,
we determined that these two reports were in agreement.
El Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7), Rules of the Auditor General,
we applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by management. It should be noted the District
merged into the North Collier Fire Control and Rescue District on January 1, 2015.
.,
Pursuant to Section 10.554(1)(i)5.d., Rules of the Auditor General, requires a statement
indicating a failure, if any, of a component unit Special District to provide financial
information necessary to a proper reporting of the component unit within the audited
financial statements of this entity (F.S. Section 218.39(3)(b)). There are no known
component special districts required to report within these financial statements.
violations or noncompliance with provisions of contracts or grant agreements, or
LJ
abuse, that have an effect on the financial statements that is less than material but more
than inconsequential. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)4., Rule of the Auditor General, requires that the name or official
title and legal authority for the primary government and each component unit of the
u
reporting entity be disclosed in the management letter, unless disclosed in the notes to
4 "
the financial statements. The District discloses this information in the notes to the
financial statements.
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the District for the three months ended
December 31, 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 three months ended December 31, 2014. In connection with our audit,
we determined that these two reports were in agreement.
El Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7), Rules of the Auditor General,
we applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by management. It should be noted the District
merged into the North Collier Fire Control and Rescue District on January 1, 2015.
.,
Pursuant to Section 10.554(1)(i)5.d., Rules of the Auditor General, requires a statement
indicating a failure, if any, of a component unit Special District to provide financial
information necessary to a proper reporting of the component unit within the audited
financial statements of this entity (F.S. Section 218.39(3)(b)). There are no known
component special districts required to report within these financial statements.
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be
included as to whether or not the local government entity has met one or more of the
conditions described in Section 218.503(1), Florida Statutes, and identification of the
specific condition(s) met. In connection with our audit, we determined that the District
did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
3
It should be noted the District merged into the North Collier Fire Control and Rescue
District on January 1, 2015.
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the District for the three months ended
December 31, 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 three months ended December 31, 2014. In connection with our audit,
we determined that these two reports were in agreement.
El Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7), Rules of the Auditor General,
we applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by management. It should be noted the District
merged into the North Collier Fire Control and Rescue District on January 1, 2015.
.,
Pursuant to Section 10.554(1)(i)5.d., Rules of the Auditor General, requires a statement
indicating a failure, if any, of a component unit Special District to provide financial
information necessary to a proper reporting of the component unit within the audited
financial statements of this entity (F.S. Section 218.39(3)(b)). There are no known
component special districts required to report within these financial statements.
E'
Page 69 of 69
Lj EJ Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our audit to
determine the entity's compliance with the provisions of Section 218.415, Florida Statutes,
regarding the investment of public funds. In connection with our audit, we determined that
the District complied with Section 218.415, Florida Statutes as reported in our
Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes
dated August 10, 2015, included herein.
PRIOR YEAR COMMENTS:
There were no financially significant prior year comments.
CURRENT PERIOD COMMENTS:
There were no financially significant comments noted.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners, management, the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
U
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
y' August 10, 2015
Lj
`'
Lj
El
LIA
r
Ul
I""']
(A
El
L"
EXHIBIT
hIiIN
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BOARD OF FIRE COMMISSION
L_, J.Christopher Lombardo,Chairman ■ Norman E.Feder,Vice Chairman • Richard Hoffman,Secretary-Treasurer
James Burke • Ramon E.Chao • Christopher L.Crossan• Margaret Hanson a John 0.McGowan
September 2, 2015
U
Auditor General's Office
Local Government Audits/342
s Claude Pepper Building, Room 401
111 West Madison Street
[ ] Tallahassee, FL 32399-1450
We are pleased to note that the audit report for the period ended December 31, 2014
for the North Naples Fire Control and Rescue District reflected no current year or prior
comments which require management's response.
The Board of Fire Commissioners and management staff of the North Naples Fire
Control and Rescue District have worked diligently to resolve all past audit comments
and address deficiencies in internal controls, and policy and procedures to insure
compliance with all requirements and maintain financial stability and fiscal responsibility.
r-
The audit report for the period ended December 31, 2014 reflects the commitment of
the Board and staff to successfully resolve any and all prior year issues.
LJ
❑ Sincerely,
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
❑ NORTH NAPLES SERVICE DELIVERY AREA
❑
OR C. STO
._, Fire Chief
1 REBECAH BRONSDON
Assistant Chief of Administrative Services
1885 Veterans Park Drive Naples,FL 34109•(239)597-3222• Fax(239)597-7082• www.northcollierfire.com