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Agenda 05/22/2018 Item #11A05/22/2018 EXECUTIVE SUMMARY Recommendation to deny a request for a Class 1 Certificate of Public Convenience and Necessity from the City of Marco Island for Advanced Life Support (ALS) response and transport. OBJECTIVE: To hear recommendations and conditions from Staff and the Emergency Medical Authority (EMA) following the application and review of a Certificate of Public Convenience and Necessity (COPCN) request for ALS Transport by the City of Marco Island. CONSIDERATIONS: On May 5, 2017, during a Joint Workshop with the Marco Island City Council, the Board discussed options for placing a second full time, year -round ambulance on Marco Island. Subsequent to that discussion, the County declined funding a second ambulance based on lack of need (the County consistently exceeds its 90% response within 8 minutes on Marco Island). The City has since submitted a formal request for a COPCN to fund and operate their own ALS transport service within the City limits of Marco Island. This request differs from others the Board has approved for Fire Districts in that it includes full EMS service including transport to hospitals. The application, which was received on December 21, 2017, includes the following: 1. First year cost (borne by Marco Island taxpayers) of approximately $2.1M, offset by approximately $950,000 in revenue collections. 2. Hiring 12 paramedics to staff two full time (24x7x365) new ambulances, one unit for peak or surge requirements, and one unit in spare. Following an evaluation of the submittal by the Bureau of Emergency Services, Staff submitted a written request for additional information on February 5, 2018. No correspondence or communication was received from Marco Island officials until April 23, 2018 following formal communications from th e County Manager expressing the need to schedule the item with the Board of County Commissioners. Additionally, on February 20, 2018 the County Manager provided a list of alternatives to the City Manager for consideration that would provide more cost-effective options to residents of Marco Island as opposed to the overhead cost of establishing a separate EMS component within the County. To date no reply was received from the City of Marco Island but the item was shared with the City Council. During this period, the City of Marco Island sought and obtained passage of a local bill (HB -1395) providing an exception to general law and authorizing the Department of Health to grant a license to the City of Marco Island to provide certain emergency medical transportation services subject to a voter referendum and other specific conditions (see HB 1395 attached). On May 7, 2018, the City of Marco Island passed Resolution 18-32 requesting a binding referendum on the August 28, 2018 ballot and providing for ballot language. Emergency Medical Authority Recommendation: On May 1, 2018, the Emergency Medical Authority conducted its review of the application for a COPCN by the Marco Fire Department for a Class 1 ALS Transport Certificate. Following a lengthy meeting, the EMA voted (three members to two) to recommend that the Board approve a COPCN conditioned upon the parties entering into an Interlocal Operational Agreement. The EMA did not specify the terms of the operational conditions. The required reports of both the majority and minority opinions of the EMA are attached to this item. In making its recommendations to the Board, staff reviewed the application in great detail and considered 11.A Packet Pg. 229 05/22/2018 the discussion during the EMA meeting, as well as the written responses to requests for additional information by staff and the EMA and compared this information to the County’s requirements for issuing a COPCN. Marco Fire offered an updated consultant’s report on both operations and financial concerns for the proposed Class 1 operations on the day of the EMA meeting. Staff finds that the supplemental report only updates the financial forecast but does not address any of the concerns or questions posed about operational specifics. To grant a certificate, Section 50-57 of the Code of Laws and Ordinances must be satisfied based on competent evidence as follows: 1) That there is a public necessity for the service. In making such determination, the Board of County Commissioners shall consider, as a minimum, the following factors: a. The extent to which the proposed service is needed to improve the overall emergency medical services (EMS) capabilities of the County. b. The effect of the proposed service on existing services with respect to quality of service and cost of service. c. The effect of the proposed service on the overall cost of EMS service in the county. d. The effect of the proposed service on existing hospitals and other health care facilities. e. The effect of the proposed service on personnel of existing services and the availability of sufficient qualified personnel in the local area to adequately staff all existing services. 2) That the applicant has sufficient knowledge and experience to properly operate the proposed service. 3) That, if applicable, there is an adequate revenue base for the proposed service. 4) That the proposed service will have sufficient personnel and equipment to adequately cover the proposed service area. Marco Island failed to demonstrate that: 1. The service is needed to improve overall EMS capabilities. The County currently provides ALS response times that exceed its Countywide goals. These response times are based on the first arrival of ALS apparatus, which is often a Marco Island Fire unit. This would not change or improve if a COPCN is granted. 2. There is no negative effect of the proposed service on existing cost of service. Marco Island’s proposal will divert between $700,000 and $1,000,000 in revenue from Collier County to Marco Island. To maintain availability of units for zone coverage, as proposed by the City but not recommended by County staff, Collier County must maintain the units currently assigned to Marco Island with no corresponding revenue. This cost will be borne by County taxpayers. 3. There is no negative effect of the proposed service on overall service to the County. To ensure availability of units for zone coverage, the County will not be able to re-assign the units currently assigned to Marco Island for use throughout the County. Furthermore; hiring paramedics from the existing EMS service could provide a negative impact on existing services. 4. That the applicant has sufficient knowledge and experience to properly operate the proposed service. The following topics and operational concerns were not fully addressed in the application or written responses. This list is not exhaustive, but highlights the most pressing concerns. a. Zone coverage/Mutual Aid/Auto-Aide. b. Drug standardization. 11.A Packet Pg. 230 05/22/2018 c. MedFlight Protocol for response and patient hand-off procedures. d. Quality Assurance and Quality Control. e. Statistical reporting. f. Closest Unit Dispatch model currently used countywide. g. Medical Direction and protocols (County’s Medical Director level of engagement). h. Acceptance of Medicare by Marco Fire. i. Billing protocols (Marco Fire and MedFlight cost would both be billed to residents) j. The levels of malpractice insurance; naming of Collier County as an additional insured. k. How and when a third full-time or seasonal unit would be staffed. l. Impact evaluation and protocols for Collier County Sheriff’s Dispatch Center. m. Priority Medical Dispatch modifications (as indicated by Marco Fire at EMA meeting). n. Marco Fire’s participation in ALS or BLS convalescence transport. o. Management of all decedents under the direction of the County Medical Examiner. p. Services to the Goodland community. 5. That the proposed service will have sufficient personnel and equipment to adequately cover the proposed service area. Marco Island failed to demonstrate that two full-time additional ambulances with the potential of staffing a third ad-hoc crew when needed will provide the necessary level of service to fully meet Marco Island’s needs. It is unreasonable to expect the County to sustain the Marco proposed level of automatic or mutual-aid back-up resources solely to support Marco Island. Overall, Staff deems the applicant’s proof of need as insufficient and that the implementation of the proposed service is potentially detrimental to a consistent level of care within the County’s nationally accredited ALS air and ground EMS delivery system. If granted a COPCN, staff recommends Marco Fire staff three full-time ALS ambulances in addition to surge capability of two units to reduce reliance on County resources. In contrast, the Collier County EMS system has 26 ambulances each day and two seasonal units to provide services and zone movement plus a substantial inventory of ambulances for reserve and repair. Staff Recommendation: Staff recommends against granting this COPCN, with or without conditions, until the requirements set forth in the County’s Ordinance are met. Notwithstanding, House Bill 1395 places the County in a situation that allows Marco Fire to fractionalize the delivery of EMS if the County does not approve a COPCN, as the State could provide such a certificate without conditions. Should the Board grant a COPCN subject to condition and/or an acceptable Interlocal Operations Agreement, staff requests issuance of that certif icate be tabled until the terms for an Interlocal Operational Agreement between the County, Sheriff’s 911, the County Medical Director, and the City of Marco are agreed upon. At that time, Staff recommends that a new hearing be held before the Board for consideration of a conditional one-year COPCN if all operational concerns are met. FISCAL IMPACT: Granting the COPCN will result in loss of revenue from patients transported by Marco Island Fire District estimated at approximately $700,000 to $1,000,000 annually that will not be offset unless the County decommissions the Marco Island units. Should the County’s Medical Director assume medical oversight, additional cost to the County for the Medical Director’s compensation will need to be addressed. GROWTH MANAGEMENT IMPACT: There are no Growth Management Impacts associated with this Executive Summary. 11.A Packet Pg. 231 05/22/2018 LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. The criteria to award a COCPN is set forth above. The Medical Transportation Ordinance further provided as follows: “In making the determinations provided for in Section 7 above, the Board may, in its sole discretion, appoint a Hearing Officer to hold a public hearing and to make factual findings and conclusions as a result of the hearing. Should a Hearing Officer be appointed, said Hearing Officer shall render a written report to the Board within 30 days of the hearing, which report shall contain the officer's findings and conclusions of fact, and a recommended order. The findings and conclusions of fact shall be binding upon the Board, but the recommended order shall be advisory only.” (Ordinance No. 04-12, Section 8) This item is approved for form and legality and requires a simple majority vote. Although it has been held by a lower court that this is a legislative process, the County Attorney recommends that the item be conducted with the formalities of a quasi-judicial proceeding. -JAK RECOMMENDATION: To deny Marco Island’s request for a Class 1 ALS Transport Certificate of Public Convenience and Necessity. PREPARED BY: Dan E. Summers, Director, Bureau of Emergency Services ATTACHMENT(S) 1. 2017 Marco Island CopCN (PDF) 2. 2018_04_20_BES Questions from Dan Summers (DOCX) 3. Ochs alternatives (PDF) 4. EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport COPCN 9may18 (PDF) 5. EMA Minority Report 050918 (PDF) 6. Marco Fitch Supplemental April 2018 (PDF) 7. Marco COPCN Bill 1395 (PDF) 11.A Packet Pg. 232 05/22/2018 COLLIER COUNTY Board of County Commissioners Item Number: 11.A Doc ID: 5704 Item Summary: Recommendation to deny a request for a Class 1 Certificate of Public Convenience and Necessity from the City of Marco Island for ALS response and transport. (Dan Summers, Bureau of Emergency Services, Division Director) Meeting Date: 05/22/2018 Prepared by: Title: Executive Secretary – Emergency Management Name: Kathy Heinrichsberg 05/15/2018 3:05 PM Submitted by: Title: Division Director - Bureau of Emer Svc – Emergency Management Name: Daniel Summers 05/15/2018 3:05 PM Approved By: Review: Emergency Management Daniel Summers Additional Reviewer Completed 05/15/2018 4:22 PM Emergency Medical Services Tabatha Butcher Additional Reviewer Completed 05/15/2018 4:39 PM Administrative Services Department Len Price Level 1 Division Reviewer Completed 05/15/2018 6:19 PM Administrative Services Department Len Price Level 2 Division Administrator Review Completed 05/15/2018 6:24 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/16/2018 7:31 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/16/2018 8:21 AM Budget and Management Office Mark Isackson Additional Reviewer Completed 05/16/2018 8:30 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 05/16/2018 2:04 PM Board of County Commissioners MaryJo Brock Meeting Pending 05/22/2018 9:00 AM 11.A Packet Pg. 233 Marco Island Fire Rescue Exhibit #9 \J Comprehensive Annual Financial Report COPCN Application Collier County 11.A.1 Packet Pg. 234 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) 11.A.1 Packet Pg. 235 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) C;ey ,f Ado'ircn, I*n**d[ ClW OF MARCO ISLAND, FLORIDA COMPREHENSIVE ANNUAT FINANCIAL REPORT For the Fiscal Year Ended September 30, 2016 PREPARED BY: THE CITY OF MARCO ISIAND,S FINANCE DEPARTMENT 11.A.1 Packet Pg. 236 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Table of Contents INTRODUCTION SECTION Table of Contents Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Organizational Chart Principal Officials FINANCIAT SECTION lndependent Auditors' Report Management's Discussion and Analysis (Unaudited) Basic Financial Statements Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Activities Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities - Governmental Activities Statement of Net Position - Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Position - Pension Trust Funds Statement of Changes in Fiduciary Net Position - Pension Trust Funds Notes to Financial Statements Required Supplementary !nformation Pension Trust Funds: Schedule of Changes in the City's Net Pension Liability and Related Ratios - Firefighters' Pension Plan Schedule of City Contributions - Firefighte/s Pension Plan Schedule of Pension lnvestment Returns - Firefighters' Pension Plan Schedule of Changes in the City's Net Pension Liability and Related Ratios - Police Officers' Pension Plan Schedule of City Contributions - Police Officers' Pension Plan Schedule of Pension lnvestment Returns - Police Officers' Pension Plan Schedule of the City's Proportionate Share of the Net Pension Liability - Florida Retirement System Schedule of City Contributions - Florida Retirement Contribution Schedule of the Citry's Proportionate Share of the Net Pension Liability - Health lnsurance Subsidy Schedule of City Contributions - Health lnsurance Subsidy Schedule of Funding Progress - Other Post-Employment Benefits General Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund Notes to Required Supplementary lnformation Page t-ll v-tx x xt xil 3-5 7 -22 25 -26 27 28 29 30 31 32-33 34 35 36 37 39-89 100 100 101 93 94 95 96 97 98 99 99 LO2 103 I t. il. 11.A.1 Packet Pg. 237 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Table of Contents Combining and lndividual Fund Financial Statements and Schedules Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Grants Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Building Services Fund Combining Statement of Fiduciary Net Position Combining Statement of Changes in Fiduciary Net Position STATTSTTCAI SECTION (UNAU DITED) Net Position by ComPonent Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances ofGovernmental Funds Assessed Value ofTaxable Property Property Tax Rates for Direct and Overlapping Governments Principal Property Taxpayers Property Tax Levies and Col lections Ratios of Outstanding Debt bY TYPe Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Pledged Revenue Bond Coverage - Water/Sewer Revenue Bonds Demographic and Economic Statistics Top Ten Employers Full Time Equivalent Employees by Department Operating lndicators by Department Capital Asset Statistics by Function /Program SINGTE AUDlTAND OTHER REPORTS AND TETTERS lndependentAudito/s Report on lnternal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Stondords lndependent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on lnternal Control over Compliance Required by the Uniform Guidance Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs lndependent Audito/s Management Letter lndependent Audito/s Report - lnvestments ilt. Page 109 110 111 1L2 113 tL4 lL1 118 tzL 122 - L23 L24 L25 L26 L27 L28 t29 130 131 t32 133 134 135 135 L37 138 L4L. L42 L43 - L44 t45 L46 L47 - L48 149 - 150 151 il 11.A.1 Packet Pg. 238 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) INTRODUCTION SECTION ill 11.A.1 Packet Pg. 239 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) This page intentionally left blank. IV 11.A.1 Packet Pg. 240 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) March 2L,2OL7 To the Members of the City Council and Citizens of the City of Marco lsland, Florida: Florida Statutes require that all general-purpose local governments publish within nine months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of independent licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Marco lsland, Florida (the "City"l, for the fiscal year ended September 30,20L6. This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by Mauldin & Jenkins, LLC, a firm of independent licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by managemenU and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year ended September 30,2016, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The Governmental Accounting Standards Board ("GASB") requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. The City and lts Services The City was incorporated on August 28,1997. Marco lsland, Florida, is located in the southwestern part of the state, on the Gulf of Mexico side of the Ten Thousand lslands region of the Florida Everglades. Originally discovered by the Spanish and named lsla de San Marco (Saint Mark's lsland), modern development of the island began in the late 1960's by the Deltona Corporation. Prior to incorporation in 1997, the island was a part of unincorporated Collier County and was served by a local Fire Protection District. The City serves a permanent population of approximately 17,000, which grows C;e -f M&r.(D@ I*I*""dI ri",".; ffi 11.A.1 Packet Pg. 241 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) up to approximately 45,000 in the peak winter season. The City is empowered to levy a property tax on both realand personal property located within its boundaries. The City has operated under the Council-Manager form of government since incorporation. Policy- making and legislative authority are vested in the governing council consisting of a chairperson and six other members. City Council is responsible for passing ordinances and approving the budget, appointing boards and commissions and hiring both the City Manager and the City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to- day operations of the government, and for appointing the heads of the various departments. The council is elected at-large on a non-partisan basis to four-year staggered terms. Council members are eligible to serve a maximum of eight years during their lifetime. The City Council Chairman is elected by the members of the City Council annually to a one-year term of office. The City provides a full range of services authorized by statute and local charter. These include police, fire, parks, recreation, streets, drainage, capital improvements, planning, zoning, community affairs and development and general administrative services, as well as water production and distribution and wastewater collection and treatment. During the fiscal year ended September 30, 2OO4, as more fully described later in this report, the City acquired the water and wastewater operations on the island and now operates those services through the City's Water and Sewer Utility Department. The Hideaway Beach Tax District was created as a private neighborhood approved a tax levy for neighborhood. Budget Process General Fund Capital Projects Fund Building Services Fund Hideaway Beach Tax District component unit of the City in 2003. Voters in re-nourishment of the beaches adjacent to this the The annual budget serves as the foundation for the City's financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget and holds the public budget workshops with the City Council on the proposed budget. Two public hearings are held on the budget, with the final budget adopted no later than September 30, the close of the City's fiscal year. The appropriated budget is prepared by fund and by department. Budget control is maintained at the fund level. Budgets are adopted for the following funds: Water/Sewer Utility Enterprise Fu nd Debt Service Fund Self-lnsurance I nternal Service Fu nd The City Manager may make transfers of appropriations within a fund or department. Budget amendments that increase fund appropriations require the approval of the City Council. The City Council has authorized the City Manager to amend, modify or otherwise adjust the operating budget to a maximum limit of 550,000 in total amendments, modifications or adjustments during the year. A budget re-appropriation ordinance, consolidating all budget amendments approved during the course of the year and those recommended by the City Manager near the end of the fiscal year, officially amends the annual budget. Capital planning for the community is accomplished through two separate long-term budget documents. The capital projects fund finances general government improvements to streets and intersections, storm drainage, bridges, park facilities, landscaping, vehicles, equipment, and generalgovernment buildings. A S-year capital improvements plan is updated and adopted annually as part of the budget process. The VI 11.A.1 Packet Pg. 242 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) acquisition of Marco lsland Utilities, discussed below, drove the need for an initial 1O-year capital program to upgrade and expand both the water and wastewater systems. The comprehensive 10-year capital program is updated every 5 years and submitted to the State as required by Florida Statutes. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local Economy: Marco lsland was developed as a planned community of exclusive water-access and waterfront residences with hotels, condominiums, and commercial businesses to support the vitality of the island lifestyle. Originally marketed as a winter retreat for people with permanent homes in the north, Marco lsland has evolved over the years into a community of diverse age groups and interests and an increasing number of permanent residents. The business community primarily provides goods and services to the permanent and visitor community. The City continues to enjoy the results of a planned, platted and deed-restricted community. A full T5o/o of the single-family building lots are located on man-made canals and bays affording easy boating access to the Gulf of Mexico and the Ten Thousand lslands forming the western boundary of the Everglades. The community offers public beach access at both ends of the island, an additional beach access for the exclusive use of island residents, and river access between the island and the mainland. Beachfront property is high-density, with multi-family and tourist-oriented accommodations. The long-term economic outlook for the City is positive. Since the low point caused by the recession, the island economy has enjoyed an exceptionally strong residential real estate market with high growth in new home starts and home and condominium re-sales. Marco lsland will never be duplicated because the U.S. Army Corps of Engineers now prohibits "dredge and fill" coastal development and mangrove forests are Federally-protected. The 2015 assessed taxable valuations used for property taxes in fiscal year 2016 showed a 6.30/o increase from the prior year. The 2015 assessed taxable valuations to be used for property taxes in fiscal year 2017 reflected an increase of 9.4% from 2015 assessed valuations. lt is projected that the 2017 valuations used to determine property taxes for fiscal year 2018 will again go up as the real estate market has seen an increase in values over the last year. Long-term Financia! Planning The City includes a five-year capital improvement plan for both its governmental and enterprise activities. The budget reflects the emphasis on maintaining existing service levels and its present investment in facilities and people while attempting to fully fund the City's pay go system, or "bucket plan". A thorough review has resulted in a financial restructuring of capital projects and development of a "bucket plan" that will be used to reduce reliance on debt financing and stabilize property tax millage rate increases in the future. Marco lsland: ln July 2002, the City negotiated a 15 year inter-local agreement with Collier County to transfer ownership of public roads and rights-of-way from the County to the newly formed City. Additionally, the County agreed to pay the City StS milllon in return for the City assuming the roadway segments. The City is a true island and has embarked on a repair and replacement process of all 15 bridges within the City's limits. Construction of the new Smokehouse Bay Bridges commenced during fiscal year 2014 was substantially completed during fiscal year 2016. To finance the project a non-ad valorem capital improvement revenue bond in the amount SS million was issued in addition to using vil 11.A.1 Packet Pg. 243 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) $Z.Z million in funds already set aside in the asset replacement fund in prior years. Moreover, the City continues to include drainage improvements, street resurfacing, and bike lane widening as part of its Capital lmprovement Plan each year. A master plan for various city parks was approved in 2005. lmprovements at Mackle Park and Veterans Community Park have occurred in phases over the past few years with grant funding and annual expenditures of capital improvements funds. During fiscal year 2074 a nonbinding referendum was held to determine if residents of the island wanted a new Mackle Park community building. The vote was 5\% in favor to construct the center up to a maximum of S3.5 million. The project plans were completed in fiscal year 2015 and the construction contract was awarded during fiscal year 2015. The Veterans Community Park continues to be a major focal point for the island activities such as seasonal festivals and a weekly farmers' market. Marco lsland Utilitiesr ln November 2OO3, the City achieved a long-term objective with the acquisition of the local water and wastewater operations from a private provider. Prior to that date, the City's utility fund was used to account for the wastewater distribution system serving approximately 1,200 accounts with central sewer on the island. Wastewater treatment was handled by Florida Water Services under contract. The City issued St0t million in utility revenue bonds to purchase utility operations on Marco lsland and at an adjacent area of unincorporated Collier County known as Marco Shores. Currently approximately 10,000 utility accounts are served. The cost of the utility acquisition was approximately SgS million with additional funds raised to begin the upgrading of a neglected utility infrastructure. ln March 2010 the City issued S58 million in utility revenue bonds to fund and refund capital improvements on the City's utility investment. Additional funds for capital investment are provided through monthly revenue deposits to a capital reserve account and a renewal and replacement account as required by bond covenants. More information is contained in the MD&A and notes to the financials. Financial Policies The City's basic financial statements are prepared in conformity with generally accepted accounting principles. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting standards followed by governmental entities in the United States. lnvestments: ln2002, the City Council approved an investment ordinance, and the City has a program of active portfolio management allowing for the purchase of investments as allowed by Florida Statutes to increase yields while maintaining safety and liquidity. lnvestments are limited to a maximum of five years with the exception of the investment of debt service reserves, which is limited to the remaining life of the corresponding debt, and the investment of pension trust funds. Financial Reserve Policy: The City established a financial reserve policy to handle the distinctive emergencies and contingencies of our barrier island. Per that policy the City will maintain emergency reserves of 25% of general fund's operating budget for the proposed fiscal year. Charter Spending Cap: The City is unique in Florida with a spending cap included as part of the original charter of the City after the first four years of incorporation. Currently, increases in annual spending are limited to 3% annually plus the annual change in the Social Security cost-of-living adjustments, or COLAs. The charter was amended by the voters in 2002 to remove the expenditures of self-supporting enterprise funds from the calculation of the spending cap. The City Council may approve emergency expenditures outside of the cap. Further information on the spending cap and the calculation of compliance is included in the Management Discussion and Analysis (MD&A) section of this report. vilt 11.A.1 Packet Pg. 244 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Risk Management: Through fiscal year 2004, the City purchased property, liability and workers' compensation insurance from the Florida League of Cities Municipal lnsurance Trust. Beginning in fiscal year 2005, the City elected to self-insure a greater degree of risk, retaining the first 5100,000 per occurrence of general liability loss, the first 550,000 per occurrence of property loss, and the first S3SO,OOO per occurrence of workers' compensation loss. This program, administered through the Public Risk lnsurance Trust, reduces the fixed costs of premiums paid while limiting the financial exposure to the City with the purchase of an annual aggregate stop-loss beginning at 51,000,000 in cumulative annual losses. The City is a Drug-Free Workplace and has safety programs in place to minimize risk exposures. To prevent and control improper conduct in government the City instituted an employee fraud hotline where any wrongdoing can be reported in an anonymous manner. Major lnitiatives: The City Manager again presented his "Bucket Plan" to City Council and the Community as part of an initiative to reduce the reliance on debt to fund the City's capital program. The plan involves the funding of items over their expected life term so as to have the funds available by the time they are fully depreciated. The plan provides the Department Directors the funding necessary to maintain an adequate level of service while allowing flexibility so that they may prioritize their expenditures. Awards and Acknowledgements Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Marco lsland, Florida, for our Comprehensive Annual Financial Report for the fiscal year ended September 30, 2015. This was the twelfth consecutive year that the government has achieved this prestigious award. ln order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements: The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated service of the entire staff of the Finance Department. We also thank the City Manager, City Council, and Chair, for the interest and support in planning and conducting the financial operations of the City. Moreover, we wish to express our appreciation to the members of the Audit Advisory Committee for volunteering their time and input. ln addition, we wish to express our appreciation to our audit firm, Mauldin & Jenkins, LLC, for their comprehensive and efficient examination of our accounts and suggestions for improvement. Respectfully submitted, n 6,\7.L Guillermo A. Polanco, CPA Finance Director tx 11.A.1 Packet Pg. 245 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) (D Governrnent Financc Officers Association Certificate of Achievement for Excellence in Financial Reporting Prcscntcd o City of Marco Island Florida For its Comprchensive Annual Financial Report for the Fiscal Ycar Ended September 30,2015 *r?P*- Exccuti ve Di rcctor/CEO x 11.A.1 Packet Pg. 246 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) City of Marco lsland xt 11.A.1 Packet Pg. 247 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA This page intentionally left blank. 2 11.A.1 Packet Pg. 248 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) MAULDN &JENKINS INDEPENDENT AI]DITOR'S REPORT City Council and City Manager City of Marco Island, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Marco Island, Florida (the "City"), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility lor the Fin an cial Statem ents Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Au dito r's Resp o n si bility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accgrdance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. l40l MANATEE AVENUE WEST, SUITE 1200 . BRADENTON, FLORIDA 34205-6708.941-7474483. 855-891-0070 . FAX94t-747-6035 MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOI.]NTANTS. WWW.MJCPA.COM 11.A.1 Packet Pg. 249 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) PRINCIPAL OFFICIAIS: IARRY HONIG, CITY COUNCIL CHAIR JARED GRIFFONI, CITY COUNCIL VICE-CHAIR BOB BROWN, COUNCILOR CHARLETTE ROMAN, COUCILOR HOWARD REED, COUNCILOR JOE BATTE, COUNCILOR vlcroR Rtos, couNclLoR AI.AN L. CABRIEL, WEISS SEROTA, CONTRACTED CITY ATTORNEY ROGER T. HERNSTADT, CITY MANAGER GUILLERMO A. POIANCO, FINANCE DIRECTOR ALFRED SCHETTINO, POLICE CHIEF IAURA M. LITZAN, CITY CLERK MARK JACKSON, IT DIRECTOR MICHAEL MURPHY, FIRE CHIEF JEFFREY POTEET, UTILITIES GENERAL MANAGER TIMOTHY PINTER, PUBLIC WORKS DIRECTOR xil 11.A.1 Packet Pg. 250 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA FINANCIAL SECTION 1 11.A.1 Packet Pg. 251 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of September 30, 201 6, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Req uired Suppl ementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information and pension and other post-employment benefit schedules on pages 7-22 and 93-101, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual fund statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required Title 2 U.S. Code of Federal Regulotiotts Part 200, Uniform Administrative Requirements. Cost Principles, and Audit Recluirements.for Federal Awards (Uniform Guidance) and is also not a required part of the basic financial statements of the City. The combining and individual fund statements and schedules and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. 4 11.A.1 Packet Pg. 252 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 21,2017, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Bradenton, Florida March 21,2017 fbA* r/t,,t^.r,X{e 5 11.A.1 Packet Pg. 253 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FTORIDA This page intentionally left blank. 6 11.A.1 Packet Pg. 254 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctw oF MARco tslAND, FtoRtDA MANAGEMENT DISCUSSION AND ANALYSIS The purpose of financial reporting, in general, is to provide the readers of the financial statements with information that will help them make decisions or draw conclusions about an entity. As management of the City of Marco lsland, Florida (the "City"), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2OL6. Readers are encouraged to consider the information presented here in conjunction with additional information that is furnished in the letter of transmittal, which can be found starting on page lV of this report. Financial Hiehlishts o The assets of the City exceeded its liabilities at the close of the most recent fiscal year by S183.9 million (net positionl. Of this amount, S24.1 million, or L3.OYo (unrestricted net position) may be used to meet the ongoing obligations to citizens and creditors. Governmental activities accounts lor 47.2% of total net position while business-type activities made up the remaining52.8%. o The City's total net position overall decreased by SO.Z million or 0A% during the current fiscal year. o The City's business-type activities reported total net position of 596.7 million, which is a decrease of 54 million , or 4%o, in comparison to the prior year. o The City's governmental activities reported total net position of 587 .2 million, which is an increase of S3.2 million, or 3.8%o, in comparison to the prior year. r As of the close of the current fiscal year as reported in the fund financial statements, the City's governmental funds reported combined ending fund balances of S25.5 million, an increase of S0.9 million in comparison withthe prioryear. Approximately 29o/oof thistotalamount, S7.4 million, is ovoilable for spending at the government's discretion (unassigned fund bolonce). o At the end of the current fiscal year, fund balance for the General Fund was Sg.A million or 34.7% of the general fund expenditures and other financing uses. The 57.4 million in unossigned fund bolance includes S+.7 million to meet the City's financial reserve policy. o At the end of the current fiscalyear, unrestricted net position of the water and sewer utility fund totals 55.6 million compared to S3.3 million in the prior year. o The financial condition of the City continued to be strong in 2016. Major capital investments were made to both the utility system and the basic infrastructure of the community. lncreased funding per the bucket plans for both governmental and business type capital infrastructure is reflected in the restricted fund balances. Professional department heads managed their operations within budgeted appropriations, and reserve levels are sufficient to respond in changing conditions. 7 11.A.1 Packet Pg. 255 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISI.AND, FTORIDA Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statement consists of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. ln addition to these basic financial statements, this report contains other supplementary information. Government-wide Financial Statements: The focus of the government-wide finoncial statements is on the overall financial position and activities of the City. Reporting is similar to that of a private-sector business. The City's government-wide financial statements include the statement of net position and statement of activities. As described below, these statements do not include the City's fiduciary funds because resources of these funds cannot be used to finance the City's activities. However, the financial statements of fiduciary funds are included in the City's fund financial statements, because the City is financially accountable for those resources, even though they belong to other parties. fhe Stotement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two reported as nef position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. Although the purpose of the City is not to accumulate net position, in general, as this amount increases it indicates that the financial position of the City is improving over time. The Statement oI Activities presents the revenues and expenses of the City as well as information showing how the City's net position changed during the most recent fiscal year. The items presented on the statement of activities are measured in a manner similar to the approach used in the private-sector in that revenues are recognized when earned and expenses are reported when incurred. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regordless of the timing of reloted cosh flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.9., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmentol octivities)from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business- type octivities). The governmental activities of the City include general government, law enforcement, fire/rescue services (emergency medical service and transport is provided by Collier County), planning and zoning, code compliance, building services, transportation, and parks. The business-type activities of the City include its water and wastewater treatment plants, water distribution, sewer collection services, sewer assessment districts, and its recreation services. The government-wide financial statements include not only the City itself (known as the primory government), but also a legally separate special tax district for which the City is financially accountable. This component unitfundions for all practicable purposes as an independent advisory board and special revenue fund of the City. The financial activity of this component unit is shown in a separate column from the primary government on the Stotement of Net Position and Stotement of Activities. 8 11.A.1 Packet Pg. 256 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The City's fund financial statements are divided into three categories: (1) governmental funds, (2) proprietary funds, and (3) fiduciary funds. Government Funds: Governmental funds are used to account for essentially the same functions as governmentol octivities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on neor-term inflows and outflows of spendable resources, as well as on bolonces of spendoble resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmentol funds with similar information for governmentol octivities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmentol octivities. The City presents in separate columns, funds that are the most significant to the City (major funds) and all other governmental funds are aggregated and reported in a single column (non-major funds). As of September 2016, the City has three major governmental funds: the General Fund, Debt Service, and CapitalProjects Fund. Proprietary Funds: The City has two proprietary funds: enterprise funds and internal service funds. For both types of funds, costs incurred are recovered through user fees and charges. Enterprise funds are used when the primary customers are citizens and businesses. lnternol service funds are used when the fund provides benefits to the government's departments or other funds. Enterprise funds are used to report the same functions as busrness-Upe octivities in the government- wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in greater detail. The City's major proprietary fund accounts for the water and wastewater utility. A non-major fund reports the activities of the recreation programs and racquet center. The internal service fund accounts for the accumulation of reserves and payment of insurance premiums and claims. Fiduciary Funds: Fiduciory funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are nof available to support the City's own programs. The City has two fiduciary funds, a Firefighters' defined benefit pension trust fund and a Police Officers' defined benefit pension trust fund. Fiduciary funds are accounted for in a manner similar to proprietary funds. 9 11.A.1 Packet Pg. 257 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctw oF MARco tstAND, FLoRIDA Notes to the Fanancial Statements; The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other lnformation: ln addition to the basic financial statements and accompanying notes, this report also presents certain required supplementory informotion concerning the City's defined benefit pension plans and budget-to-actual schedules for the City's General Fund. This report contains other information including support schedules, a statisticalsection (unaudited)and other reports section. Government-wide Financial Analvsis Net position serves as a useful indicator of the City's financial position. The City's total assets exceeded liabilities by S183.9 million at the close of the fiscal year. This was a decrease of approximately O.4o/o compared to last yearrs net position of 5184.7 million. The chart below shows the steady and gradual increase up to a plateau over the last ten fiscal years of both the governmental and business-type activities. The relative stability of the City's governmental performance is reflected in the 53.2 million, or 3.8%o, increase in total net position of governmental activities. This steadiness is primarily due to Council's desire to limit governmental debt and curb expenditures while at same time maintain its infrastructure. ln business-type activities, the $4 million, or 4o/o, decrease in total net position is primarily due to the depreciation expense recognized on the City's water and sewer infrastructure which has a direct relationship to the net investment in capital assets. City of Marco lsland's s120.0 s1m.0 Sso.o Soo.o s4O.o s20.0 i Total Net Position 10 2008 2009 2010 2011 2012 2013 2014 2015 2016 11.A.1 Packet Pg. 258 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISI.AND, FLORIDA Asubstantial portion of theCity's net position,37.7%, reflects its investment in capital assets (e.g., land, buildings, improvements, infrastructure, and equipment; all categories are net of depreciation), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should still be noted that the resources needed to repay this debt must be provided primarily from tax and water rates sources since the capital assets themselves cannot be used to liquidate these liabilities. Some assets are subject to external restrictions on how they may be used. This portion of net position is earmarked for the completion of capital projects, debt service payments or growth-related expenses to parks, roads, police and fire rescue services. This amount totals 590.5 million or 49.3% of net position as of the end of the fiscal year. The remaining balance of unrestricted net position (SZ+.f million or L3.L%) may be used to meet the City's ongoing obligations to citizens and creditors. The amount of the City's total unrestricted position increased by S7.9 million compared to last fiscal year with the majority of the increase occurring in the governmental activities' net position. Approximately Sg.S million of funds from restricted sources were invested in the system over the last fiscal year. The following schedule is a summary of the fiscal 2016 Statement of Net Position with comparative information for fiscal 2015. Summary Statement of Net Positlon (ln $ mllllonsl Govemmental Activities Business-Wpe Activities Lzs.3 S 270.9 L26 281.0 Current and other assets Capital assets Total Assets Deferred outflows of resources Current liabilities Long-term debt and other liabilities Total Liabilities Deferred inflows of resources Net Position: Net investment in capital assets Restricted Unrestricted Total Net Position 61.1 59.8 8.2 9.8 82.1 85.8 6.4 4.7 s 30.3 s 72.a L97.423.2 0.3 22.0 o.2 30.1 73.6 395.2 5.8 8.8 2t0.6 5 es.o 198.1 293.1 1.0 5.8 191.5 S 96.1 207.4 103.1 5.8 3.0 19.0 LO3.7 4.4 3.5 19.6 303.5 1.0 4.5 199.3 Q7.2 2.4 8.1 218.9 227.0 69.5 1m.3 15.5 8.5 13.5 59.3 90.6 23.417,0 LL.4 s 85.5 5 U.t 96.7 s 100.7 s 183.3 s rAS.a 11 xns ?,J.ts 11.A.1 Packet Pg. 259 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISI.AND, FTORIDA The table below summarizes the City's Statement of Activities as of September 30, 2015 and 2015: Summ.ry Strtc,ncnt of Actlvldcs (ln I mllllonrl Buslnc3s-Wpr Ardvltlcs Revenuas: Program revenues: CharSes for services Operating grants and contributions Capital grants and contributions @neral rcvenues: Taxes Other general revenues Total Revenues Expanses: Govemmental activitias: General government Public safety Transportation Cultura and recrcation lnterest on lonS-term debt Busi ness-typ€ activities: Water and sewer Recreation Total Exprnses Transfers Change in net position Net position, beginning Net Position, end of year 35.3 t.z t.7 4.3 L.2 1.7 18.8 S48 L2 L2 m.t 4.4 14.4 8.3 0.9 0.3 37.2 L.2 L.2 rc.1 18.8 32.4 ,_o 37.7 0.5 3.2 3.0 1.9 2.0 5.1 5.0 :n.5 xr.o 34.3 34.0 64.8 63.0 5.4 11.1 8.2 1.0 0.3 4.4 5.4 t4.4 11.1 8.3 8.2 0.9 1.0 0.3 0.3 37.9 37.7 0.4 0.5 37.9 0.4 38.2 Ercess revenues ovcrexpenscs beforc tr.nsfcB 2.2 3.o (4.01 (4.21 (1.8) ll.zl 22 2.4 (1.01 F.n (1.8) (1.2) u.4 82.3 1m.7 104.3 185.1 185.6 5 85.6 U.7 %.7 1m.6 1&i.3 185.4 Govern ment Activities : The total net position of the City's governmentalactivities increased 53.2 million from S8+.0 million last fiscal year to S87.2 million in the current fiscal year. The revenues were used to fund normal operating expenses and infrastructure projects. The City continues to benefit from the City Council's strategic direction, which has resulted in operating efficiencies and cost savings. The change in total net position over the past ten years is presented in the bar chart shown below: Governmental Activities Total Net Position (in millions) I N.t I retrcnt ln Crplt l Asts r RcaElctrd r umstrlctc{ 12 GoEmmantd Actlvldar 11.A.1 Packet Pg. 260 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISIAND, FLORIDA Business-type Activities: The City's total net position of the business-type activities decreased by S+ million, or 4Yo, from S100.7 million last fiscal year to 5g6.Z million in the current fiscal year. ln 2003, the City issued 5101 million in bonds for the acquisition of the water and sewer utility system for the island and an area adjacent to the island. The seven-year STRP plan that started in 2005 to replace deteriorating septic systems and provide a city-wide central sewer system was completed during the fiscal year. The City's investment in capital assets decreased from last year by S1.5 million, or t6.3%io, however, it decreased primarily due to additional depreciation taken on existing assets. Business-type Activities Total Net Position (in millionsf s900 S8oo SToo 560.o Ssoo s4{}o s300 Szoo Sloo t s(10o) t Nct lri/estnent in Crpitrl As6ats a f,csrlctcd r un est,lcted 2007 20(E 2(xx} 2010 2011 ZOt2 201:! 2014 2015 rc16 Financial Analvsis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Traditional users of the governmental financial statements will find the fund financial statement presentation more familiar. The focus of the fund financial statements is on major funds, rather than fund types. Governmental Funds: The focus of the City's governmentol funds is to provide information on near- term inflows, outflows, and balances of spendable resources. The governmental funds presentation is designed to show the sources and uses of liquid resources. This is the manner in which the budget is typically developed. Such information is useful in assessing the City's financing requirements. ln particular, unossigned fund bolonce may serve as a useful measure of the City's current financial resources available to spend for City operations. As of the end of the current fiscal year, the City's governmentol funds reported combined ending fund balances (non-spendable, restricted, assigned, and unassigned) of 525.5 million, an increase of S0.9 million in comparison with the prior year. This decrease resulted primarily due to the use of funds in capital outlay expenditures. 13 11.A.1 Packet Pg. 261 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA Assigned ond unossigned fund bolonce is the portion of fund balance available for spending at the City's discretion. This year 66.8% of the total governmental fund balance constitutes assigned and unassigned fund balance. Of this amount, the Council has assigned or indicated its intention that 59.7 million be used for the use of on-going capital improvement projects. ApproximatelV fi.q million, including the City's financial reserve of 54.7 million, is unassigned and available for future spending or emergencies and contingencies. The remaining S.+ million in unassigned fund balance is available for new spending. The remainder of fund balance is committed (internall or restricted (external) to indicate it is not available for new spending because it has already been appropriated by enabling legislation for specific purposes, including debt service, parks construction, road construction, and public safety services. The general fund is the chief operating fund of the City. General tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. General operating expenditures, fixed charges, and capital improvement costs not paid through other funds are paid from this fund. At the end of the current fiscal year, the general fund's total fund balance is 59.3 million. The City has a long history of planning for contingencies and has a financial reserve policy which sets aside a 25% reserve of the prior yea/s budget, or approximately four months of normal general fund operating expenditures to cover emergencies and other contingencies that may occur. City Council has made a conscious decision to use ad valorem taxes (property taxes) as its primary revenue source for the general fund instead of diversifying its revenue base with other taxes, user fees, and charges for services. Total general fund revenues increased S2.0 million compared to last year. The pie chart below shows the breadkown by percentage of general fund revenues by type. Fiscal Year 2016 General Fund Revenues (in millions) I Taxes a Permiti & impect fees r lntergo\rernrnental r Servke charges r Fines & lorfeits r Miscellaneous Total general fund operating expenditures increased by S0.1 million. Public safety expenditures increased by SO.Z million due to increases in the number of staff and related personnel costs, including benefits. Expenditures for the other departments remained comparatively stable due to management's continued effort to operate in a more efficient manner. The pie chart below shows the breakdown of fiscal year 2016 general fund expenditures by department category. L4 11.A.1 Packet Pg. 262 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA Fiscal Year 2O16 General Fund Expenditures (in millions) r General GovernrrEnt I Polke r Fie r code I Streets r Reoeation The capital projects fund is the City's other major fund. Since its incorporation in 1997, the City has embarked upon major infrastructure projects throughout the city limits. Current projects focus on the on the replacement of the Smokehouse Bay Bridge and repair of other bridges, road surfaces, drainage lines and maintenance of existing infrastructure and improvements to parks and open spaces for community events. An asset replacement fund was created in fiscal year 2010 to minimize this condition by allowing for a build up of reserves which can be used in future years. During fiscal year ended September 30,2OL6, S5.0 million in capital projects were completed, primarily the Smokehouse Bay Bridge, with 55 million funded in the prior fiscal year by bond proceeds and S2.2 million from the asset replacement fund. The balance was funded by general fund transfers of S5.4 million to the capital projects fund during the fiscal year. Proorietarv Funds: The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Proprietary funds account for services that are generally supported by user fees and charges to customers. Proprietary funds are presented on a total economic resource basis. Proprietary fund statements provide both short and long term financial information. The City's proprietary fund is composed of two enterprise funds and one internal service fund. Unrestricted net position for all enterprise funds at the end of the year was 55.6 million. The City's major enterprise fund is the water and sewer utility fund and its non-major fund is the recreation fund. The water and sewer utility began several major multi-year capital construction projects during 2006 and the City Council determined that it was in the best interest of the City to use the City's available resources during construction, thereby delaying the need for the issuance of debt and incurring interest expenses. ln addition, the City obtained State Revolving Fund Loans from the Florida Department of Environment Protection for the financing of sewer assessment districts constructed each fiscal year, as well as permanent financing with other financial institutions which will be paid from the various sewer assessment districts. 15 11.A.1 Packet Pg. 263 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA Overall, the water and sewer utility fund's net position as shown on the fund financial statements decreased by 53.9 million from S99.7 million in the prior year to S95.8 million at the end of this fiscal year. The majority of the decrease is a result of depreciation expense and its effect on net investment in capital assets. Operating revenues for the proprietary fund increased by S.4 million, or L.3%o, and operating expenses not including depreciation and amortization costs decreased by $O.L, or O.9Yo, compared to the prior year. lnterest income remained constant with the prior year. lnterest expense also decreased by S0.3 million, or 3o/o. Operating income before non-operating revenues, capital contributions, and transfers was 52.5 million this fiscal year compared to S2.2 million last fiscal year, representing an increase of S.3 million primarily due to a decrease in the costs of utilities, repairs and maintenance, and supplies. Staff is closely monitoring impacts on revenues due to conservation, record weather conditions, and elasticity in volumetric usage due to the system's compulsory rate increases. Genera! Fund Budgetarv Highlishts and Charter Spending Cap There was an increase of 5634,742 in appropriations in the general fund during the year end September 30, 2016. Historically, the City develops a conservative budget based upon 96% of ad valorem taxes, and between 90% and 95% of the State's various state-shared revenue projections due to the uncertainty in the economy. Actual revenue received and use of reserves was S.3 million less than budgeted. This was primarily due to a conservative budget approach on ad-valorem revenue. Permit and impact fees exceeded budget by S0.5 million. ln the long term we expect a downward trend in CST revenue due to the shift in telecommunications from land lines to wireless devices. Overall, departmental expenditures were in line with budgeted expenditures. Charter Spending Cap: The City is governed by a spending cap in the City Charter, limiting the growth in expendituresto3% plus the year-to-year change in the federalcost of living adjustment (COLA)from the preceding year. ln September 2002, voters approved amending the spending cap by removing all expenditures of self-supporting or business-type enterprise funds and expenditures funded by grants, gifts, and impact fees from the calculation of expenditures covered by the spending cap. Ordinance 14-08, approved by the City Council in August 2014, replaced Resolution 03-03 as adopted by City Council on January 13, 2003. The Ordinance establishes the legislative intent and procedures for the calculation of the expenditure limitations. Exhibit A of the Ordinance sets forth the following policies and procedures used to calculate the spending cap limits: 1. The term "operating expenditures" shall be interpreted as "expenditures from the operating budget of the City's Government Fund." 2. Expenditures from the operating budget shall include transfers into capital asset funds for future use. a. GASB states that "expenditures represent the use or expected use of current financial resources" and that "expenditures of governmental fund resources" may give rise to general capital assets, which are defined as "capital assets of the government that are not specifically related to activities reported in proprietary or fiduciary funds." b. GASB Codification Chapter 1500.115 defines "expenditures" as decreases in net financial resources." 3. The term "prior yea/s expenditures" shall be interpreted as the City's determination of actual expenditures for the current year at the time the spending cap calculation is to be undertaken. 16 11.A.1 Packet Pg. 264 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctw oF MARco lsLAND, FtoRlDA 4. The term "then current Federal COLA (Department of Labor, Bureau of Statistics, Consumer price lndex)" shall be interpreted as the prior yea/s COIA released by the Social Security Administration in October. That is starting with Fiscal Year 2015 the COIA used will be SSA COIA released in October 2013 (effective January 7,20741. As of September 30, 2015, any accumulated capital funds will remain in the capital projects assigned fund balance, as defined by the implementation of GASB 54, in order to exclude them in the future yea/s spending cap calculation. For the fiscal year ended September 30, 20t6, the City was in compliance with the Charter Spending Cap: Expenditures fiscal year 2016 General Fund General Fund Transferto Capital Projects Fund Debt Service TOTAL OF ALL FUNDS SUBJECTTO SPENDING CAP Less expenditures funded by grants and gifts Less expenditures funded by enterprise funds Fiscal Year 2016 expenditures subject to Spendlng Cap Plus percentages permitted by City Charter 3% general expenditures increase 07o expected COLA released in October 2015 Total percentage i ncrease permitted Fiscal Year 2017 Spending Cap SL9,w,s74 4,t78,235 4,691,430 28,5v,2N (584,380) (%9,32s) 27,O2O,535 810,616 810,516 -@l- Effective October 1, 20L6, the fiscal year 2017 General Fund Budget approved by City Council was 525,579,030. Annual contributions committed to the asset replacement reserve fund are covered by the spending cap while future expenditures from the fund will be exempt from the spending cap. Capital Assets and Debt Administration As expected, the City's investment in capital assets and its use of debt financing has changed dramatically since the acquisition of the water and sewer system. CIW of Marco lsland's Capltal Assets, Net (ln Mllllons) s2so.o s2(xr.o slso.o s100.o sso.o so.o Businesr-type 2@7 2@a 2@9 2010 2011 2012 2013 2014 201s 2016 t7 11.A.1 Packet Pg. 265 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO !S[AND, FLORIDA Capital Assets: The Cit/s capital assets balance (net of accumulated depreciation) for its governmental and business-type activities as of September 30, 2015, was 5270s million. The amount of net capital assets includes land, buildings, and improvements other than buildings, machinery and equipment. The 510.1 million decrease in governmental capital assets, net of depreciation, is primarily due to the depreciation on the City's infrastructure; S9.2 million of the total decrease is related to business-type capital assets, net of depreciation. Additional information on capital assets can be found in Note 5 to the financial statements. LonE-term Debt: The City continues to have strong underlying bond ratings. Standard and Poor's, Moody's and Fitch have issued ratings ol "M+" , "Aaa" , and "M+" for the City's general obligation bond issue; "M", " Aa2", " M" for the Cit/s sales tax revenue bond issue; and " A+" , " Aa3" , and "AA-" for the Water and Sewer Utility system revenue bond issues, respectively. At the end of the current year, the City had total long-term debt (excluding accrued compensated absences, OPEB liability, and deferred assessments) outstanding of $212.4 million. Of this amount S13.8 million is considered governmental obligations and the remaining 5198.5 million is business-type debt which is secured solely by specified water and sewer utility fund revenue sources. Of the Stg.g million in governmental debt, Sg.t million was approved by referendum by the City's voters and an additional ad-valorem property tax is collected to retire this debt. This debt was partially refunded by the 2014 general obligation series. Sales tax revenue was pledged to cover 52 million in governmental debt. Capital leases of S0.9 million are secured by non-ad valorem revenue. ln 2014 the City issued a non-ad valorem capital improvement revenue bond in the amount of 56 million to finance the Smokehouse Bay Bridge project. The capital improvement revenue bond has a balance of 55.7 million. City of Marco lsland'sTotal Debt (in Millions) s2so.o s2oo.o s1so.o s1oo.o sso.0 So.o r Governmental Business-type As is common for a newly acquired utility system, the City has significant debt related to its water and wastewater utility system. Utility Series 2003 Revenue Bonds were issued to finance the acquisition of the water and wastewater utility system from Florida Water Services, lnc. in November 2003. Utility Series 2006 and 2008 Revenue Bonds and State revolving loan funds from 2007 and 2010 were used to finance additional capital improvements to the Ci$s water and wastewater systems. During fiscal year 2@7 2@8 2m9 2010 20t7 20t2 2013 2014 2015 2016 18 11.A.1 Packet Pg. 266 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA 2010, tax-exempt bonds were issued to refund and reimburse the water and sewer utility for projects previously committed and spent as well as for supplementary projects. ln addition, taxable bonds were issued to refund the prior year's bonds and to fund a deposit to the required debt service reserve. The Series 2011 revenue bonds took advantage of favorable market conditions to refund a portion of the original 2003 acquisition revenue bonds. The Series 2013 revenue bonds also took advantage of favorable market conditions to refund the remainder of the original 2003 acquisition revenue bonds and the 2008 series. The debt service of the assessment bonds and state revolving loans are secured solely by the special assessments charged to each district. Construction of all seventeen districts is complete and permanent financing with a balance totaling S47.2 million is in place. The remaining S143.6 million of the total S191.6 million in business-type debt is secured by the general rate base customer fees. Additional information on long-term debt can be found in Note 8 to the financial statements. Economic Factors and Next Yeay's Budget and Rates Collier County is located on the southwest coast of the Florida peninsula, across the state and directly west of the Miami-Fort Lauderdale area. The County's principal industries include tourism, agriculture, fishing and cattle ranching. Located on a barrier island along the Gulf of Mexico, the City's local economy is based primarily on upscale resort and retirement activities. lt was originally marketed as a winter retreat for people with permanent homes in the north. The region enjoys a climate that is classified as sub-tropical and the City has a permanent population of approximately 17,000 which grows to 45,000 in peak winter season with the influx of part-time residents and tourists. The City is the second largest municipality (after the City of Naples) located in Collier County. The County's median age of 48 is nearly 7 years older than the state's median age. More than 30.1% of the county's residents are 65 or older, compared with 19.4% statewide. Per the U.S. Department of Labor, the unemployment rate for Collier County is currently 5.2%, down .4%from a year ago. The Collier County Tourist Development Commission (Naples, Marco lsland, Everglades City Convention and Visitors Bureau) reported that the number of visitors to the three Collier County cities decreased by 2% compared to 2015 with the majority being Floridians at 45.60/0, out-of-state al 24.60/o, and the remaining 29.8o/, from other countries. Propertv Values and Taxes: Property values in Southwest Florida increased dramatically after incorporation in 1997 and prior to 2007. Taxable values on Marco lsland increased from 53.9 billion in 2001 to S12 billion in 2007. As is true across the country, the growth proved to be unsustainable and eventually the housing bubble burst with values falling significantly. The City's assessed valuation decreased to approximately the 2005 values. The City's fiscal 2016 taxable value is approximately Sg.S billion which reflects an increase of 6.3% from the fiscal 2015 value. The City's fiscal 2017 taxable value is S9.3 billion which reflects an increase of 9.4% from the fiscal 2016 value' 19 11.A.1 Packet Pg. 267 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISLAND, FTORIDA Taxable Values s12.0 s10.0 s8.0 cg s6.o ao s4.0 2010 20tt 20t2 2013 2074 2015 2016 2077 ln 1995, the State of Florida limited all local governments' ability to raise property assessments of homestead property in any given year lo 3Yo or cost of living, whichever is lower. Statutory changes to the state's tax laws were passed by the Florida Legislature in 2007 to assist homeowners when the taxable valuations were increasing substantially each year. lmplementation of a key provision of the law started for budgets beginning in fiscal year 2008 and provided maximum millage rates for all local governments. ln effect, the State required all governments to decrease property taxes by rolling back the operating millage rate to fiscal year 2002 values. Further tax reform regulations allow municipalities to increase the tax rate to the point where tax revenues equal the rolled-back tax rate plus growth in Florida personal income with a simple majority vote of the City Council. The Ci!y's total current year maximum aggregate rolled-back rate based on the legislative changes is 1.9984 mils. City residents enjoy a standard operating millage rate of 2.0466 mils in fiscal year 2016 that is only .1761 more than the pre-incorporation millage rate of 1.8705 from 1997 while services were expanded to include a local police presence, improved streets and drainage, and additional recreation capabilities. The City's charter mandated spending cap further limited increases to the Cit/s millage rate during the years when the property values were increasing rapidly. The City has made a practice of living within its means. During the housing bubble expansion, many local governments throughout the State increased services and expanded their budgets while the City has made a practice of living within its means. Those same governments have endured severe cuts due to the unsustainable growth that the housing bubble created while the City has enjoyed a relative flat change to its millage rates. Additionally, City Council and residents prefer the use of ad valorem taxes rather than diversifying the Cit/s revenue base with the use of franchise fees and other optional taxes. The City's share of the total ad valorem tax bill received by the residents from Collier County is 18%. What this means to taxpayers is that 18 cents of every 51 on the property tax bill is distributed for use within the City limits. The remainder of the property tax bill is spent by other taxing agencies including Collier County and the school board. s2.0 s- 20 2008 11.A.1 Packet Pg. 268 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) clw oF MARco lsLAND, FLORIDA Water and Wastewater UtiliW: ln November 2003, the City achieved a long-term objective with the acquisition of the local water and wastewater operations from a private provider. Prior to this date, the City's utilities fund was used to account for the wastewater distribution system serving approximately 1,200 accounts with central sewer on this island. Wastewater treatment was handled by Florida Water Services lnc. under contract. The City issued StOt mlllion in utility revenue bonds to purchase utility operations on Marco lsland and at an adjacent area on the mainland of unincorporated Collier County also known as Marco Shores. The cost of the utility acquisition was approximately S85 million and the additional funds were used to begin the upgrading of a neglected utility infrastructure. Annual funding for capital improvements are required by bond covenants and are deposited monthly to a renewal and replacement fund and a capital reserve fund. Likewise, subsequent project revenue was provided by bonds issued in 2005, 2007,2008,2010 and 2011. The City's demand for fresh water consumption over the past few years has been declining; the wastewater production is growing as more properties are connecting to the central sewer system as part of the seven-year Septic Tank Replacement Program (STRP). lnfrastructure for the L7 sewer assessment districts has been connected to the central wastewater system, thereby providing more sewage for treatment. Rather than disposing the treated effluent into deep injection wells, the City expanded its investment in the re-use water distribution system. Re-use or effluent water sales lower the usage of potable water and thus defer some capacity improvements to a future date. This deferment of expensive improvements to the water plant lowers the costs to all the current and future system users even if each individual user does not have access to re-use distribution system. Total water and sewer utility revenue increased $.5 million, or L.S%o, compared to last year primarily due to the rate increase implemented and the addition of new customers. During fiscal 2013 as part of refinancing the 2003 and 2008 bond issues, the City Council adopted Resolution No. 13-15 ratifying and confirming its acceptance and approval to increase rates through and including fiscal year 2018. The base and volumetric rate increases of 7%,2.\Yo,2.7o/o,2.2o/o, and 2.3o/o arc scheduled to take effect at the beginning of each fiscal year from 2014 through 2018 respectively. The 2013 refunding bonds resulted in the release of reserves in the amount of 55.5 million and a debt service reduction in the amount of S:.+ million over the remaining term of the bonds. As of December 7,2Ot6, the City closed on the 2016 bond series which refunded the 2010A bond series. As of December 7,2076, the City also fully paid off, legally defeased, the 20108 bond series with a balance of 56.2 million by using available water and sewer impact fee funds that arose from several large commercial projects on the island. The 2016 refunding bonds resulted in the release of reserves in the amount of S1.9 million and a debt service reduction in the amount of $6.9 million over the remaining term of the bonds. The legal defeasance of the 20108 bonds resulted in the release of reserves in the amount of S.5 million and interest savings in the amount of iq.q million. An additional $1.3 million in reserves will be released in 2020, on the bonds callable date. Hideawav Beach District: The City is responsible for a legally separate special tax district for which the City maintains accounting records and is financially accountable. This component unit is funded through ad valorem taxes and has an independent advisory board that makes recommendations which are subsequently reviewed and ratified by City Council. ln 2003, voters in the Hideaway Beach neighborhood voted to tax themselves by establishing a special taxing district as the financing mechanism for the area's beach re-nourishment plan. The taxing district requested and received approval for a short-term loan from the City to implement the final phase of the plan in conjunction with funds received from the Collier County Tourist Development Council (TDC). 2t 11.A.1 Packet Pg. 269 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISI.AND, FLORIDA Property values in Hideaway Beach increased by 9.3% compared to last fiscal year, and the tax levy in the Hideaway Beach District was lowered to 1.2 mils from the last fiscal year at 1.5 mils. Requests for lnformation This financial report is designed to provide interested users with a general overview of the City finances. An electronic version of this report and prior yea/s reports can be found on the City's website at www.citvofmarcoisland.com. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Office of the Finance Director, 50 Bald Eagle Drive, Marco lsland, Florida 34L45. 22 11.A.1 Packet Pg. 270 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA BASIC FINANCIAL STATEMENTS 23 11.A.1 Packet Pg. 271 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA This page intentionally left blank. 24 11.A.1 Packet Pg. 272 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FTORIDA Statement of Net Position S€ptember 30, 2015 Prlmary Govemment @vemmental Buslness.type Activldes ActlvldesAss€ts Cash and investments Receivables (net, where applica ble, of allowance for uncollectible) Accounts Assessments, current portion Assessments, interest Accrued interest lnternal balances Due from other governments Prepaid items Restricted cash and investments Assessments receivable Capital assets Land and land improvements Buildings and utility plants lmprovements other than buildings lnfrastructure Equipment Accumulated depreciation Construction in progress Net capital assets Total assets Deferred Outflows of Resources Deferred amount on pension plans Deferred amount on refunding debt Total deferred outflows of resources Component Unit Hideaway Beach 1,029,515L2,249,940 20,185 (807,25;) 1,869,921 r57,696 t6,799,670 10,817,009 2,626,988 969,691 2,558,406 89,881 807,25t 3,608 56,813,901 20,4L3,@9 23,06,6,949 2,il7,L73 969,691 2,558,406 89,881 t,869,92L 161,304 73,6L3,57L 20,473,U9 32,778,419 L7,L85,340 125,358,635 193,9r4,943 82,Lt4,406 (188,207,103) 6,740,O70 15,363,360 t7,4t5,059 LO,370,376 6,814,964- 126,358,635 t@,222,U2 93,692,901 10,8ss,918 7L,258,488 (6s,163,495) (123,043,607) r,r18,742 5,621,328 72,766,942 t98,Lt7,768 270,88/.,7LO 103,057,103 293,2l8,ts2 396,275,255 1,029,51s 5,8/,6,422 - 5,846,422 791,130 791,130 5,U6,422 791,130 6,637,552 See accompanying notes to financial statements. 25 11.A.1 Packet Pg. 273 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Liabilhles Accounts payable and other current liabilities Customer dePosits Accrued interest payable Total current liabilities Noncurrent liabilities Bonds, notes, and caPital leases, net of unamortized discounts and premiums Due within one year Due in more than one Year Compensated absences Due within one Year Due in more than one year Other post emPloyment benefits Net pension liability Total noncurrent liabilities Total liabilities Deferred lnflows of Resources Deferred amount on Pension Plans Total Deferred lnflows of Resources Net Position \/ Net investment in capitalassets Restricted for CaPitalOutlaY Debt Service Renewal and rePlacements lmpact and public safety Programs Building services Unrestricted Total net position CITY OF MARCO ISLAND, FLORIDA statement of Net Position September 30, 2016 Prlmary Govemment Govemmental Business-type Activities Activities 5,169,689 45,000 3,s88,101 8,802,790 Component Unit Hldeaway Beach 92,315 92,315 Total 2,949,303 3,000 96,778 3,049,081 2,220,386 42,OOO 3,49L,323 5,753,709 8,161,862 782,553,74t 121,833 419,?48 313,329 18,285,975 191,570,513 21,335,056 t97,324,222 t,854,307 9,780,866 288,639 1,062,588 775,703 4,s24,472 329,558 329,558 6t,t3L,77L L,5t4,O72 r,492,269 r,9t4,977 3,570,28L t7,6t5,60t 5#23l 8,193,29s L0,262,s64 63,556,78t 2,540,588 5,ffi9,297_ 6,442,535 96,685,050 69,325,056 LO,262,s64 65,070,853 4,032,857 7,604,214 3,s70,28L 24,058,136 L83,923,97t g37,200 937,200 10,016,169 r92,334,607 41o,472 t,482,336 1,088,432 4,524,472 209,856,488 2L8,659,278 329,ss8 329,558 92,3Ls See accompanying notes to financial statements. 26 11.A.1 Packet Pg. 274 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctrY oF MARCO tStAND, FLORTDA statement of ktivities Year Ended September 30,2016 FudloN/oroarams PrirurySovem@nt Govemmental activities GeneElspvemmnt Police S€ilices Fire and rclcue code compllame Building*ruaces Transpnation PhFical Environmnt Culture and rccreation lnterest on lonS-term deb[ Total govern@ntal activitie. 8uslre$-type activltles waterand sewer Recreation Total hEiresi-type aatMti6 Total primry government ComFEnt unit Hideaway Beach Da$rict Ch.E.s Op.atina C.plt l lot GnnB and GhnB end Erp.ns S.dk6 Contibudont Cdtrlbutiona s 4,424,936 1,243,196 Govcmmcnbl Bu,ltr@typa Baaah Acdrrfr6 A.drridca Tdb Dtirld (3,1t1,740) - (3,181,7,!0) (4110,341) - (4,810,341) (5708,295) - (s,708,296) (184,()69) (184,069) u4,$s - 8{4,45 (6,082,191) - (5,082,19r) 120,@0 120,000 (824,s41) (824s41) (328,382) (32&382) 120,1s5,095) (20,1s5,095) (s,831271) (Sr31,271) 18,932 18,932 (5,812339) (s,812,339) (20,1ss,09s) (5,812,339) (25,967,434) (1,008,958) 17,799,045 - 17 ,799,U5 606,033 uL,t14 - 861,174 \4$,422 - 7,453,422 2,650,823 - 2,650,823 255,206 !,A22,r21 2,077,329 5,773343,302 36,606 379,908 19 ,d qqa l1a qqA! 23341,96 1,834,135 25,222,101 611825 3,232,811 (3,978,204) (745,333) (397,133) 84,006,040 1@,563,264 184,559,304 1,33,t,333 s---- _g!:g!:lqe_ _wL e37,2@ 4,955,746 6,666,126 253,598 132,221 781rv 59,629 14,178 til,690 11,m5 1,474,ML 2,318,906 8,327,811 200,000 1,000,000 925,684 101,143 1,045,625 120,m 328,382 21,357,A30 4817,235 1,178,868 L,r76,632 37,869,303 '2,034,03239! 963 410895 3a,261,266 32,448,927 s_9ry9- _w- -14999- 1,176,612 (............].,jE- Gereral revenues Taxes ProFrtytaxes Communicaiion *Nicebx Other taxes State sharc rcvenue - unrestricted lnterest Masc€llamou5 rcwn@s (exFnses) TransfeG Total gem6l evenes andtransre6 Change in et position Net posilon, beginninS Nd position, endinS See accompanyinS notes to financial statements. 27 Net (eryenre) evenue and 11.A.1 Packet Pg. 275 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA Balance Sheet Governmental Funds S€ptemb€r 30,2016 Debt Service Total Total Nonmajor Governmental Funds Funds - 9,518,035 3,314 20,18s- L,869,927- 22,732 3,630,7t6 L5,799,670 3,634,030 _39::9Eg- Capital Projects Assets Pooled cash and cash equivalents Receivables Accounts, net Due from other governments Prepaid items Restricted cash and cash equivalents Total assets Liabilities Accounts payable Accrued liabilities Customer deposits Total liabilities Fund balances Nonspendable Restricted Park construction and operation Road construction Fire services Police seruices Debt service Building services Committed Asset replacement Assigned Capital projects Unassigned Total fund balances Total liabilities and fund balances 9,518,035 L6,871 L,726,362 - ,or,uu, 22,732 s _-L@9- _!W_ r7,7s8,44r S L,946,1!4 108,409 -- 627,52L 2,59t,755 744,966 3,000 2,739,727 t8,L20 36,557 2,057,523 627,52t 54,677 - t,492,269 7,397,900 - 9 '674'65L- 9,326,477 L,5L4,O72 11,t70,920 s 11,384,000 L,5L4,O72 tt,798,441 - 22,732 - 387,028_ 1,073,300_ 272,795- 172,722- L,5L4,O72 3,579,3s3 3,579,353 - 1,492,269 - 9,578,6s1 3,579,353 25,590,822 3,634,030 28,310,s43 22,732 387,028 1,073,300 27?,795 t72,722_ L,5L4,O72 See accompanying notes to financial statements. 28 11.A.1 Packet Pg. 276 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Position September 30,2016 Totalfund balances governmentalfunds S 25,590,822 Total net assets reported for governmental activities in the Statement of Net Position is different because: Capital assets used in governmental activities are not financial resources and, therefore are not reported in the funds. 72,766,942 Accrued long term debt interest expense is not a financial use and, therefore is not reported in the funds. 196,7781 Long term liabilities, including long-term debt, compensated absences, and other post-employment benefits are not due and payable in the current period, and therefore are not reported in the funds. (13,751,503) Net pension liabilities are long term and are not due and payable in the current period, and therefore are not reported in the funds. 14,524,4721 Deferred outflows and inflows or resources related to pensions are applicable to future periods and, therefore, are not reported in the funds 5,516,854 lnternal service funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. This is the portion of net position included in governmental activities in the Statement of Net Position. L,747,036 Net position of governmental activities S 87,238,911 See accompanying notes to financial statements. 29 11.A.1 Packet Pg. 277 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISI.AND, FLORIDA Statement of Revenues, Expenditures and Changes in Fund Ealances Governmental Funds Year Ended September 30, 2016 79,322,086 455,304 3,815,513 7,956,175 156,650 L22,556 295,545 Capital ProJects 1,123,94; 105,795 53,7A7 1,283,530 2,318,905 11,006 14,133 2,344,045 20,L!4,04r 2,784,2L0 4,950,467 1,956,175 156,650 255,205 349,355 30,565,105 3,755,195 6,L30,770 5,370,053 243,945 L,458,L24 2,366,5U 837,tU 4,442,593 328,382 5,975,257 31,908,098 Debt Seruice Total Nonmajor Funds Total Governmental Funds Revenues Taxes Permits, fees and assessments lntergovernmental Charges for services Fines and forfeitures lnterest Miscellaneous Total revenues Expenditures Current General government Police services Fire and rescue code compliance Building services Transportation Culture and recreation Debt service Principal lnterest and fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over (under) exp€nditures Other financing sources (uses) Transfers in Transfers out Bond issuance Total other financing sources (uses) Change in fund balances Fund balances, beginning of year Fund balances, end of year 791,955 L2,72; 24 26,t33,829 3,755,195 6,L30,770 6,3s0,89s 243,945 2,356,584 837,tU L9,684,574 4,366,267 325,163 a04,70L 19,168 1,458,L24 76,326 3,219 5,9U,257 11,000 4,591,430 5,043,802 1,488,292 6,449,255 (3,885,729) (4,760,2721 8s5,753 (1,341,993) (s,473,610) 975,645 8,350,832 5-wl- - L,332,44 (s,473,610) 1,980,000 3,3t2,468 1s74,2671 2,088,333 _!w_ 4,439,692 (320,s80) 11,491,500 tt,L70,9zo (12,s00) 843,253 2,736,t00 3,579,353 5,510,704 (s,486,11O) 2,24!,456 2,266,0s0 924,057 24,666,765_ry_ 4,L78,236 25L,456 (12,s00) See accompanying notes to financial statements. 30 11.A.1 Packet Pg. 278 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended September 30, 2016 Net change in fund balance - governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays (55,980,751) were less than depreciation (56,822,741) in the current period. Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. This is the net effect of these differences in the treatment of long-term debt. Principal payments on debt Debt proceeds from bonds and notes Principal payments on capital lease Debt proceeds from 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 governmental funds. Changes in compensated absences Accrued interest Other post-employment benef its Governmentalfunds report pension plan contributions as expenditures. However in the Statement of Activities, the cost of pension benefits earned net of employee contributions is reported as pension expense. Pension expense Pension contributions lnternal service funds are used by management to charge the costs of certain activities, such as insurance, to the funds. This is the net revenue (expense) of internal service funds reported in governmental activities. Change in net position of governmental activities 5 e24,os7 (841,990) 4,015,000 (1,980,000) 427,593 (261,4s61 \, (197,L821 42,339 (79,377], {.2,228,9791 3,649,63t (235,82s) S 323281_ See accompanying notes to financial statements. 31 11.A.1 Packet Pg. 279 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA Statement of Net Position Proprietary Funds September 30, 2015 Business-type Activities-Enterprise Funds Govemmental Activities- Water and Sewer 45,602,675 62,595,723 17,2tr,226 20,4L3,649 t7,4L5,059 126,358,635 93,692,901 6,751,110 7t,782,576 s,621,328 |.122,938,97s\ t98,082,634 229,707,509 292,303,232 79t,1.30 Recreation (Nonmajor) 72,535 63,854 75,912 (1M,532) 3s/34 35,134 107,659 Total lntemal Sewlce FundAssets Current assets Pooled cash and cash equivalents Accounts receivable, net Prepaid items Assessments receivable - current portion Assessments interest receiva ble lnterest receivable Restricted cash and cash equivalents Total current assets Noncurrent assets Restricted cash and cash equivalents Assessments receivable Capital assets Land Tra nsmissions and distributions I nfra structure Buildings and improvements Vehicles and equipment Construction in progress Accumulated depreciation Net capital assets Total noncurrent assets Total assets Deferred outflows of resources Deferred amounts on refunding debt Total deferred inflows of resources to,744,474 72,535 2,626,988 3,608 959,691 2,558,406 89,881 10,817,009 2,626,988 3,508 969,691 2,558,406 89,881 45,602,675 62,668,258 tL,zLL,226 20,4L3,649 L7,4L5,059 126,358,635 93,692,907 6,8t4pU 7t,258,488 s,621,328 (123,043,507) L98,ll7,768 229,742,643 292,4L0,90L 2,631,905 L34,964 2,766,869 2,766,869 791,130 791,730 See accompanying notes to financial statements. 79t,L30 32 11.A.1 Packet Pg. 280 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctw oF MARco tsLAND, FtoRtDA CITY OF MARCO ISIAND, FLORIDA \/ Statement of Net Position Proprietary Funds September 3O 2016 Governmental Business-type Activities{nterprise Funds Activities- Water and Recreation lnternal Sewer (Nonmajor)Total Service Fund [iabilities Current liabilities Accounts payable Accrued liabilities Accrued interest Customer deposits Compe nsated absences, current portion Bonds payable, current portion Notes payable, current portion Total current I iabi lities Noncurrent I iabi lities Compensated absences Bonds payable Notes payable Other post-employment benefits Total noncurrent liabilities Total liabilities Net Position Net investment in capital assets Restricted Capital Reserve Debt service Renewal and replacement lmpact and public safety programs Unrestricted Net position 35,134 L0,262,5il 63,556,781 2,5lm,588 5,689,297 5,606,0s4 29,230 s _9s,813,44s_ _il,364 7,993,957 183,L24 3,497,323 42,W LzL,833 s,230,101 2,931,672 38,62L 4,M 2,O32,578 187,808 3,491,323 42,000 12t,833 s,230,101 2,937,672 L2,86 199,69: 13,994010 4L9,78 L34,027,678 48,526,212 313,329 783,286,907 197,2ffi,9t7 8,1s&161 43,305 L4,037,3L5 4t9,74 LU,027,5t8 M,526,2L2 3L3,329 212,582 43,305 183,285,907 797,324,222 8,793,295 LO,262,5il 63,sso781 2,540,588 s,689,297 5,635,2U 9s,877,W w7,25t _96,68s,060_ 2L2,s82 2,slil,28; 2,55/.,287 Adjustment to reflect internal service fund activities reflected in enterprise funds Net position, business-type activities S See accompanying notes to financial statements. 33 11.A.1 Packet Pg. 281 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds Year Ended September 30, 2016 Business-type Actiyities-Enterprise Funds Water and Sewer Recreation (Nonmajor) 410,895 Governmental Activhies- lnt.mal Service FundTotal Operating revenues Charges for services Total operating revenues Operating expenses Personal services lnsurance Utilities Contractual fees Repairs and maintenance Supplies Rental and lease costs Other expenses Amortization Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) lnterest income I nterest expense Miscellaneous expense Other nonoperating income Gain on sale of capital assets Total nonoperating revenues (expenses) lncome (loss) before transfers Transfers in Transfers out Change in net position Net position, beginning of year Net position, end of year (3,926,316) s7,s43 99,739,76t 6,821 s _?@- u,364 s 32,038,032 5,849,936 762,948 2,008,103 t,052,966 929,689 1,183,929 4,796 809,627 113,651 16,852,804 29,s68,449 2,469,583 t,822,t23 l8,0/t,478l. (149,94s) 34,722 1,884 (6,332,6941 (3,863,111) t68,797 24,968 34,446 15,955 59,929 76,893 10,975 391,963 18,932 18,932 38,611 6,018,733 762,948 2,O33,O7t L,087,4r2 945,6M t,243,858 4,796 886,s20 113,551 L6,863,779 29,960,4t2 2,488,515 L,822,t23 (8,041,478) (149,945) 34,722 1,884 (5,332,594) (.3,844,t791 38,611 (63,20s) 13,868,773l. 99,746,582 95,877,809 32,448,927 7,536,271 7,895,702 1,895,702 (3s9,491) 13,235 13,235 (346,2s6) (346,2561 2,900,543 2,554,287 Adjustment to reflect the intemal service fund activities related to the enterprise funds (109,431) Change in net position, business-type activities S (3,978,204) 34 11.A.1 Packet Pg. 282 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISLAND, FLORIDA Statement of Cash Flows Proprietary Funds Year Ended September 30, 2016 Water and Sewer 5 32,oL2,n3 (5,s44,968) (s,676,6s2) 20,79t,r53 (63,20s) (63,20s) 12s0,3s6 L,8U 17,765,6761 (8,031,02s) (7,625,8671 120,L70,3281 t,822,L22 L,822,722 2,379,742 61178,633s-gry- Recreation (Nonmajor) 4U,9W (203,230) (L67,8261 33,924 38,611 38,611 72,535 72,535 Govemmental Activities- lnternal Service Fund Business-type Activities+nterprise Funds Total Cash flows from operating activities Cash received from customers and users Cash payments to suppliers Cash payments to employees for services Net cash provided (used) by operating activities Cash flows from noncapital financing activities Transfers Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities Proceeds from special assessments Proceeds from sale of capital assets Principal paid on long-term debt lnterest paid on long-term debt Acquisition and construction of capital assets Net cash used by capital and related financing activities Cash flows from investing activities lnterest and investment earnings Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Reconciliation of operating income (loss) to net cash provided (used) by operati ng activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation and amortization Changes in assets and liabilities: Accounts receivable Prepaids and other assets Accounts payable Accrued liabilities Due to other funds Customer deposits Compensated absences Reconciliation of cash and cash equivalents Pooled cash and cash equivalents Restricted cash and cash equivalents s LO,74p,474 72,s35 tO,8L7,@9 s-9@: -l]ji,- -@919- 32,417,753 (s,748,1e8) (s,u4,478], 20,825,O77 |t24,s941 (24,s941, 3,2s0,3s6 1,8&l (7,76s,676\ (&031,02s) (7,62s,867\ 12o,17O,328l t,822,722 L,822,722 2,452,277 65,L78,633 67,63q910 t,556,572 (2,U2,Ls3l. 148s,6211 L3,235 13,235 (472,3861 3,!M,291 2,631,905 2,469,583 t6,8s2,M {t49,2s9}. L7,992 t,302,749 v,u9 24,m 98,747 18,932 to,975 7,$L 971 (s,91s) 7,W 2,488,5rs L6,ffi3,779 (4s,2ssl 77,992 t,30/.,2to 35,020 (s,91s) 31,500 98,747 (3s9,491) 20,361 ( 118,749) (s,2ffil. (.22,476l. 2.631,905 2,631,905 Net cash provided (used) by operating activiti S 20,791,153 33,924 20,825,077 (485,621) 35 11.A.1 Packet Pg. 283 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISIAND, FTORIDA \/ See accompanying notes to financial statements. Statement of Fiduciary Net Position Fiduciary Funds September 30, 2016 Assets Cash and cash equivalents Contributions receiva ble lnvestments, at fair value Government bonds Corporate bonds Common stock Accrued interest Tota I investments Total assets Net position Restricted for pension benefits and other purposes See accompanying notes to financial statements. Pension Trust Funds 5 t,ztzne 389,408 3,878,776 4,9!5,7L8 76,O5O,623 7,747 24,792,964 26,515,050 s _26,s119q9_ 36 11.A.1 Packet Pg. 284 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA Statement of Changes in Fiduciary Net Position Fiduciary Funds Year Ended September 30, 2016 Additions Contributions Employer Employee State of Florida Total contributions lnvestment earnings lnterest and dividend income Net change in fair value of investments Less investment expense Net investment earnings Totaladditions Deductions Benefits paid General administration Total deductions Change in net position Net position, beginning of year Net position, end of year Pension Trust Funds s 3,295,332 33,497 584,380 3,973,209 398,740 !,ogL,og7 (191,299) t,298,528 5,2L!,737 314,374 84,430 398,744 4,912,993 21,702,057 s ____?9,s1!4!g_ See accompanying notes to financial statements. 37 11.A.1 Packet Pg. 285 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA This page intentionally left blank. 38 11.A.1 Packet Pg. 286 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS 1. Summarv of Significant Accountine Policies (A) Reoortins EntiW The City of Marco lsland, Florida (the City), was established in a special election by mail ballot per Florida House of Representatives HB 1729 on August 28,1997. The City is located on the Gulf of Mexico in the westernmost portion of Collier County. The City operates and is governed by the laws of the State of Florida and its own Charter, which provides for a Council/Manager form of government. As required by Governmental Accounting Standards Board (GASB), these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize they are legally separate from the government. The accompanying financial statements present the City and its component unit, Hideaway Beach District (Hideaway), an entity for which the City is considered to be financially accountable. The Hideaway Beach District was established on April L9, 2004, by the voters within the Hideaway Beach neighborhood to assess a special ad valorem tax within Hideaway. Hideaway is a discretely presented component unit and is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the City. Separate statements are not issued. ln addition to the discretely presented component unit, this report also includes the accounts and transactions of the City of Marco lsland Firefighters' and Police Officers' Pension Plans (the Firefighters' Pension Plan and the Police Officers' Pension Plan). These plans do not satisfy the definition of a component unit because they are not legally separate from the City. (B) Government-wide and Fund Financial Statements The basic financial statements consist of the government-wide financial statements and fund financial statements. Both sets of statements distinguish between the governmental and business- type activities of the City. Government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements report on the government as a whole and provide a consolidated financial picture of the government. As part of the consolidation process, inter-fund activities are eliminated to avoid distorted financial results. The amounts reported as internal balances represent the residual amounts due between governmental and business-type activities. Fiduciary funds of the government are also excluded from this presentation since these resources are not available for general government funding purposes. 39 11.A.1 Packet Pg. 287 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS The Statement of Net Position reports all financial and capital resources of the City's governmental and business-type activities. Governmental activities are those supported by taxes and intergovernmental revenues. Business type activities rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges for goods or services that are recovered directly from customers for services rendered and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particularfunction or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Since the governmental fund financial statements are presented on a different measurement focus and basis of accounting than the government-wide statements, reconciliation is provided which briefly explains the adjustments necessary to reconcile the results of governmental fund accounting to the government- wide presentations. (C) Measurement Focus. Basis of Accountine and Financial Statement Presentation The government-wide financial statements, the proprietary fund financial statements, and the fiduciary fund financial statements are reported using the economic resources meosurement focus and the occruol bosis of occounting. Revenues are recorded when earned and expenses recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Pension trust funds recognize employer and state contributions in the period in which the contributions are due, and the City has made a formal commitment to provide the contributions. Retirement benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. The financial statements of the Plans are prepared using the occruol bosis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Governmental fund financial statements are reported using the current finoncial resources meosurement focus and the modified accrual bosis of occounting. Revenues are recognized as soon as they are both measurable and available. Under the modified accrual basis of accounting, revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 50 days of the end of the current fiscal period. Grant revenues are an exception, as they are considered available when eligible expenditures have occurred even though they may be collected for up to one year after the current fiscal year end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Debt service expenditures and accrued compensated absences expenditures are recorded only when payment is due. 40 11.A.1 Packet Pg. 288 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA NOTES TO FINANCIAT STATEMENTS Property taxes, public services taxes, franchise taxes, licenses and permits, and interest income associated with the current fiscal period are all considered to be susceptible to accrual and are recorded as earned since they are measurable and available. All other revenue items are considered to be measurable and available only when cash is received by the City. (D) Major Funds and Basis of Presentation The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for using a separate set of self- balancing accounts, which comprise its assets and deferred outflows of resources, liabilities and deferred inflows of resources, fund equities, revenues and expenditures or expenses. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Accounting principles generally accepted in the United States of America set forth minimum criteria (percentage of the assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined), for the determination of major funds. The non-major funds are presented in one column in the fund financial statements. The City reports the following major governmental funds: o The generol fund is the City's primary operating fund. lt accounts for all financial resources of the general government, except those required to be accounted for in another fund. Most of the essential governmental services such as police services, fire and rescue services, planning and zoning, code compliance, transportation, culture and recreation, and general administration are provided by the general fund. o The debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term debt of the governmental funds. o The capital projects fund accounts for the activities associated with construction and the preservation of the City's governmental capital assets. The City reports the following major proprietary fund: o The woter and sewer fund accounts for the water and sewer collection services provided to its customers. All activities necessary to provide such services are accounted for in this fund, including personal services, contractual services and utilities, depreciation and other expenses. Additionally, the City reports the following fund types: o The speciol revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes. o The internol service fund accounts for the collection of premiums, accumulation of reserves and payment of insurance claims for the City. o The pension trust funds account for the activities of the Firefighters' and Police Officers' Pension Plans, which accumulate resources for defined benefit payments to qualified employees. 4L 11.A.1 Packet Pg. 289 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS The accounting policies and the presentation of the financial report of the City have been designed to conform to accounting principles generally accepted in the United States of America as applicable to governmental units, in accordance with statements promulgated by the Governmental Accounting Standards Board. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenues include: (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments. lnternally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's primary ongoing operations. The principal operating revenues of the water and sewer enterprise fund and the recreation enterprise fund are charges to customers for sales and services. The water and sewer fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and the internal service fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. (E) lmplementation of Governmental Accounting Standards Board Statements The City implemented the following GASB Statement during the fiscal year ended September 30, 2015: (1) GASB Statement No. 72 "Foir Volue Meosurement ond Applicotion" The requirements of this Statement will enhance comparability of financial statements among governments by requiring measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. This Statement also will enhance fair value application guidance and related disclosures in order to provide information to financial statement users about the impact of fair value measurements on a government's financial position. (F) Assets. Liabilities and Net Position or EouiW (1) Deposits and !nvestments The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturities of three months or less from the date of acquisition. 42 11.A.1 Packet Pg. 290 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAT STATEMENTS The City's investment practices are governed by Chapter 280, Florida Statutes, and the City's investment policy Ordinance No. 02-19. These allow the City to invest in certificates of deposit; money market investments; obligations of and securities backed by the U.S. Treasury, its agencies and instrumentalities; repurchase agreements; banke/s acceptances; prime commercial paper; state and government debU fixed-income mutual funds; and the State Board of Administration. lnvestments for the City, as well as for its component unlt, are reported at fair value. The pension trust funds may also invest in qualified public depositories, or other investments as determined by an investment advisor, retained by the Pension Boards, subject to guidelines prescribed by the Pension Boards. All plan investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price on the City's balance sheet date. (2) Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of inter-fund loans) or "advances to/from other funds" (i.e., the non-current portion of inter-fund loans). All other outstanding balances between funds are reported as "due tofrom other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." All receivables are shown net of an allowance for doubtful accounts. An allowance for doubtful accounts is established based on the specific assessment of all amounts that remain unpaid following normal payment periods. All amounts deemed to be uncollectible are charged against the allowance for doubtful accounts in the period the determination is made. Water and related wastewater charges to customers are based on actual water consumption. Consumption is determined on a monthly cycle basis. The City recognizes as revenue the estimated consumption as of September 30. (3) Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of these items are recorded as expenditures when consumed rather than when purchased. (4) Restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Based on the bond covenants, most of these are maintained in separate custodial accounts. 43 11.A.1 Packet Pg. 291 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA NOTES TO FINANCIAL STATEMENTS (5) Capital Assets Capital assets include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items). They are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Proprietary fund capital assets are also recorded in their respective fund financial statements. Capital assets, other than infrastructure assets, are defined by the City as assets with an initial, individual cost of more than 51,000 and an estimated useful life in excess of one year. The City reports infrastructure assets on a network and subsystem basis. Accordingly, the amounts spent for construction or acquisition of infrastructure assets are capitalized and reported in the government-wide financial statements regardless of their amount. lnterest costs are capitalized when incurred by proprietary funds on debt where proceeds were used to finance the construction of assets. lnterest earned on proceeds of tax-exempt borrowing arrangements restricted to the acquisition of qualifying assets is offset against interest costs in determining the amount to be capitalized. ln the case of the initial capitalization of general infrastructure, the City was able to estimate the historical cost through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the City constructs or acquires additional capital assets each period, including infrastructure, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to the capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. ln the case of donations, the City values these assets at the estimated fair value of the item at the date of its donation. Property, plant and equipment of the primary government are depreciated using the straight line method over the following estimated useful lives: Buildings and improvements Transmission and distribution I nfrastructure Vehicles and equipment 20-40 Years 2040 Years 10-40 Years 5-10 Years (6) Deferred Outflows/lnflows of Resources The Statement of Net Position includes a separate section for deferred outflows of resources. This represents the usage of net position applicable to future periods and will not be recognized as expenditures until the future period to which it applies. The Statement of Net Position also includes a separate section, listed below total Liabilities, for deferred inflows of resources. This represents the acquisition of net position applicable to future periods and will not be recognized as revenue until the future period to which it applies. 44 11.A.1 Packet Pg. 292 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA NOTES TO FINANCIAL STATEMENTS The City includes deferred charges on refunded debt as deferred outflows of resources in the Government-wide Statement of Net Position. A deferred charge on refunded debt is the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the remaining life of the refunded (old) or the life of the refunding (new)debt. The City also has deferred outflows and inflows related to the recording of changes in its net pension liability. Certain changes in the net pension liability are recognized as pension expense over time instead of all being recognized in the year of occurrence. Experience gains or losses result from periodic studies by the Plan's actuary which adjust the net pension liability for actual experience for certain trend information that was previously assumed, for example the assumed dates of retirement of plan members. These experience gains or losses are recorded as deferred outflows of resources or deferred inflows of resources and are amortized into pension expense over the expected remaining service lives of plan members. Changes in actuarial assumptions which adjust the net pension liability are also recorded as deferred outflows of resources or deferred inflows of resources and are amortized into pension expense over the expected remaining service lives of plan members. The difference between projected investment return on pension investments and actual return on those investments is also deferred and amortized against pension expense over a five year period. (7) CompensatedAbsences It is the government's policy to permit employees to accumulate earned but unused personal leave. These amounts are accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Compensated absences are generally liquidated by the general and enterprise funds. Full-time City employees earn from L50 to 224 hours annually, based upon years of service, and can accrue up to 720 hours. Sworn Police Officers under a collective bargaining agreement earn from 176 to 248 hours annually, based upon years of service, and can accrue up to 720 hours. City Firefighters under union contract earn from2t6 to 350 hours annually, based upon years of service, and can accrue up to 935 hours. Upon termination, these employees are entitled to all accumulated earned leave hours paid out at the hourly rate. (8) Long-termObligations Long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund financial statements. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. ln the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. lssuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 45 11.A.1 Packet Pg. 293 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS (9) Nature and Purpose of Classifications of Net Position/Fund Balances Net position is the result of assets and deferred outflows of resources less liabilities and deferred inflows of resources. The net position of the government-wide and proprietary funds are categorized as net investment in capital assets, reduced by accumulated depreciation and any outstanding debt incurred to acquire, construct or improve those assets excluding unexpended bond proceeds, restricted or unrestricted. The first category represents net position related to property, plant, equipment and infrastructure. The restricted category represents the balance of assets restricted by requirements of revenue bonds and other externally imposed constraints or by legislation in excess of the related liabilities payable from restricted assets. Unrestricted net position consists of the net position not meeting the definition of either of the other two components. The City classifies fund balance in accordance with GASB Statement No. 54 "Fund Bolonce Reporting and Governmentol Fund Type Definitions." This Statement enhances the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. ln the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the e)dent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Nonspendoble lund bolance include amounts that cannot be spent because they are either: (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted lund bolance amounts that are restricted to specific purposes either by: (a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation are classified as restricted fund balances. Committed fund balonce amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council through an ordinance or resolution are classified as committed fund balances. Assigned lund bolonce amounts that are constrained by the City's intent to be used for specific purposes but are neither restricted nor committed are classified as assigned fund balances. Assignments are made by the City Manager based on Council direction through a resolution. Unassigned fund bolonce represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the generalfund. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use it is the City's policy to use committed resources first, then assigned, and then unassigned as they are needed but reserves the right to selectively defer the use of these funds. 46 11.A.1 Packet Pg. 294 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA NOTES TO FINANCIAL STATEMENTS (10) Financia! Reserve Policy The City maintains an adequate General Fund balance to provide liquidity in the event of an economic downturn or natural disaster and management administers the Council's direction for an Emergency Reserve of 25% of the proposed fiscal year General Fund Operating Budget. This amount is included in the General Fund unassigned fund balance and represents $4,689,586 of the 57,397,900 unassigned fund balance at September 30,2076. (11) Net Position ln the government-wide financial statements, the net investment in capital assets is capital assets net of related debt for the governmental activities and business-type activities, if applicable. Debt relating to capital assets is issued subsequently to the utility capital asset purchase in many instances, due to the nature of the utility capital projects with the septic tank replacement program. Capital assets are acquired using temporary financing which is later refunded when permanent bonds and notes are issued. (G) Other Policies (1) Property Tax Calendar The City levies property taxes each November 1, which become a lien on real and personal property located in the City. The assessment of all properties and the collection of all property taxes are made through the Property Appraiser and Tax Collector of Collier County, Florida. The tax levy is based on taxable assessed real and personal property values totaling Sg.O bittion for fiscal year 2015 and 58.5 billion for fiscal year 2016. Details of the tax calendar are presented below: Lien Date Levy Date lnstallment Payments First lnstallment Second lnstallment Third lnstallment Fourth lnstallment Regular Payments Discount Periods No Discount Period Delinquent Date January L,2OL5 November L,2075 No Later Than June 30, 2015 No Later Than September 30, 2015 No Later Than December 31, 2015 No Later Than March 31, 2016 November 2015 through February 2015 After March L,2OL6 April 1,2015 (2) Proper{Tax Limitation The City is permitted by state statutes to levy taxes up to 10 mills of assessed value. The millage rate levied by the City for the fiscal year ended September 30, 20L6, was 2.04. Current tax collections for the City were approximately 96.5% of the total tax levy. 47 11.A.1 Packet Pg. 295 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS (3) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. (4) Encumbrances Budgets in governmental funds are encumbered upon issuance of purchase orders, contracts or other forms of legal commitments. While appropriations lapse at the end of the fiscal year, the succeeding year's budget ordinance specifically provides for the re-appropriation of year-end encumbrances. 2. Stewardshio. Compliance and Accountabiliw Annual budgets are adopted on a basis consistent with generally accepted accounting principles and are prepared for all governmental funds. Prior to May 1, all agencies of the government submit requests for appropriations to the City Manager so that a budget may be prepared. During August, the proposed budget is presented to the City Councilfor review. The Council holds public hearings and a final budget must be prepared and adopted no laterthan September 30. The appropriated budget is prepared by fund, function, and department. The City's department heads may make transfers of appropriations within a department. The City Council has authorized the City Manager to amend, modify or otherwise adjust the operating budget to a maximum limit of $50,000 per fiscal year. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. Encumbrance accounting is employed in all City funds. Encumbrances (i.e., purchase orders, contracts) outstanding at year end lapse and do not constitute expenditures or liabilities however, any approved commitments will be re-appropriated and honored during the subsequent year. Certain budgeted expenditures are subject to a "spending cap." These expenditures are limited to an increase from the prior year's budgeted expenditures of 3% plus the then-current Social Security cost- of-living adjustment. This limitation was amended and clarified in 2002 by voter referendum and in 2Ota by Council Ordinance replacing the 2003 Council Resolution. The spending cap for the 2016 fiscal year, as adopted by City Council, was 527,020,535. The final actual amount for the 2015 fiscal year was S25,158,184, which was in accordance with the spending cap limit. 3.@ Cash and Equivalents include cash on hand, amounts in demand and time deposits and short- term tnvestments with original maturity of three months or less from the date acquired by the City. All of the City's deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chapter 280, Security for Public Deposits Act. Under the Act, every qualified public depository shall deposit with the Finance Director eligible collateral of the depository to be held subject to his or her order. All collateral must be deposited with an approved financial institution. Any potential losses to public depositors are 48 11.A.1 Packet Pg. 296 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA NOTES TO FINANCIAL STATEMENTS covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. lnvestments include a wide range of securities that the City is authorized to invest in such as certificates of deposit, money market funds, U.S. Treasury obligations, State and U.S. Government Agencies and Enterprises, State and Local Government Series, the State Board of Administration investment pool, the Florida Municipal lnvestment Trust, mutual funds and repurchase agreements. The City's investment practices are governed by Chapter 280 and 218, Florida Statutes, City Code of Ordinances, Article Vl, Section 2, the adopted investment policy, and various legal covenants related to outstanding bond issues. For all investments authorized by statute and policy, the City applies the "Prudent Person Rule" when developing investment strategies. The City uses only financial institutions qualified as public depositories by the State of Florida or "approved" security dealers to place its investments unless bond covenants specifically require other financial institutions to be used. The Florida Municipal lnvestment Trust (Municipal Trust) was created under the laws of the State of Florida to provide eligible units of local government with an investment vehicle to pool their surplus funds and to reinvest such funds in one or more investment portfolios under the direction and daily supervision of an investment advisor. The Florida League of Cities serves as the administrator, investment manager and secretary-treasurer of the Trust. Throughout the fiscal year the City also utilizes Salem Trust Securities as its custodial agent for individual investments it transacts throughout the year. Salem Trust is recognized as the leading provider of custodial and benefits payment services to municipalities throughout the southeast United States. As of September 30, 2015, the City and its component unit had the following deposits and investments: DeDosit and lnvestment Tvoe Matures ln Nospecific L.ssThan Maturity One Year S 2s,31s,443 Matures in Matur€s in 1-5Y.a6 tloYears 68,U4954 - 68,114954 Matures in Total lolYea6 (at Fair Valuel - 12,5@,3s8 - 12,755,@5 4,279,63A 4,279,638 4,279,63a 97,770,035 Deposits with Bank Money Market Funds U.S. Government Securities FMIvT Total Deposits and lnvestments s 1es60,3s8u,7s5,085 - lnvestments and cash held on deposit with banks for the discretely presented component unit as of September 30,20L6, is S1,029,515. Fair Value Measurement: The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. 49 11.A.1 Packet Pg. 297 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA NOTES TO FINANCIAT STATEMENTS The City's investments at September 30,2076, are reported as follows: lnvestments by fair value level Bonds and Notes Total investments by fair val ue level 5 4,279,638 @ Fair Value Measurements Using Quoted Prices Signif icant in Active Other Significant Markets for Observable Unobservable ldentical Assets lnputs lnputs (Level 1) (Level 2) (Level 3) s 5 4,27e,638 s - -E--E-E- c - lnvestments measured at the net asset value (NAV) FMIvT G2 Year High Quality Bond FMIvT 1-3 Year High Quality Bond Total investments measured at NAV Total investments measured at fair value lnvestrnants measured at the NAV FMIvT 0-2 Year HiBh Quality Bond FMIvT 1-3 Year High Quality Bond Tota! investments nnasured at the NAV 29,619,069 3&49s,885 68,114954 _s ?2,394,s92_ Untunded Fair Value Gonrrltmnts $ 29,619,069 38,495,885 Rederption Redemption Freguency (if Notice Currently Eligible) Period $ 68,114,954 lnterest Rate Risk: As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits the City's investment portfolio, excluding investments held for debt service requirements, to maturities of five years or less. The FMIvT uses a weighted average days to maturity (WAM) method. A portfolio's WAM reflects the average maturity in days based on final maturity or reset date, in the case of floating rate instruments. WAM measures the sensitivity of the portfolio to interest rate changes. The FMIvT 0-2 Year High Quality Bond has a WAM of .89 in years and the FMIvT has a WAM of 1.40 in years. The investment maturities of the pension trust funds are not limited. Credit Risk: While authorized by policy, the City has no investments in commercial paper, bankers' acceptances, or corporate bonds. Federal agencies carry only an implicit guarantee from the government and are not full faith and credit investments such as U.S. Treasury Bills and Bonds. The City also has investments of 54,279,638 in State of Wisconsin Build America Bonds, rated Aa2, as part of its debt service reserves which parallel the 20 year life of the 2010A series issued. The City holds investments with the Florida Municipal lnvestment Trust (FMlvT), an external investment pool under GASB 40. These investments are held in 0 to 3 year high quality bonds with an MA Standard & Poor's rating. External financial statements are available at www.floridaleagueofcities.com/finance. The City also uses Salem Trust in a custodial capacity for its debt services reserves as required to be set aside by the individual debt issues. The investments include both U.S. Government Securities and Money Market Funds. 50 11.A.1 Packet Pg. 298 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISTAND, FLORIDA NOTES TO FINANCIAL STATEMENTS ln its investment policy, the City specifies that in satisfying the investment objectives of safety of capital, liquidity of funds, and investment income, the objective will be to mitigate credit risk and interest rate risk. Potential market risk will be limited as the City's cash needs are evaluated. Concentration of Credit Risk: The City's investment policy allows the following investment types and limitations: Maximum rnvestmenrwith lnvestment Type Maximum Portfolio Allocation anY lnstitution Direct obligations ofthe U.S. Treasury Securities backed by the full faith and credit of the U.S. Government Securities backed by federal agencies Agencl-issued mortgage backed securities Repurchase agreements Certificates of Deposit Bankers acceptances Prime commercial paper State/Government taxable and tax-exempt debt Dollardenominated money market mutual funds Fixed-income mutual funds Local Government Surplus Funds Trust \wo 35% 75% 35% 5M 3s% 25Yo 25% 25% 25% 25% LWo none none 50% of portblio non6 nono nono $1,000,000 $1,000,000 none none none none Custodial Credit Risk: All of the City's public deposits are held in qualified public depositories pursuant to Florida Statutes, Chapter 280. Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, times the depository's collateral pledging level. The pledging level may range from 25% to 200% depending upon the depository's financial condition and establishment period. All collateral must be deposited with an approved financial institution. Any losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral, and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. lnvestment securities are purchased on a delivery-vs-payment basis through third party safekeeping accounts. Foreign Currencv Risk: The City's investment policy does not allow investment of funds in securities denominated in a foreign currency. The Firefighters'and Police Officers' Pension Plans, governed by the Fire and Police Pension Boards, have authorized a maximum of 70% of funds to be invested in foreign secu rities. The Pension Trust Fund investments are determined by the Board of Trustees of each pension trust plan. The portfolios of the Pension Trust Funds have long-term growth strategy and have a target allocation of 60% common stocks and 40% bond funds, with a maximum of tO% of the portfolios being invested in foreign investments. The investment policy requires that all fixed income securities must hold a rating in one of the three highest classifications by a major rating service. 51 11.A.1 Packet Pg. 299 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISI-AND, FLORIDA NOTES TO FINANCIAL STATEMENTS As of September 30, 2016, the Pension Plans had the following deposits and investments: Maturcs ln NoSpecific LessThan Deoosit and lnvestment TYDe Deposits with Bank Money Market Funds Government bonds Corporate bonds Common stock Total Deposits and lnvestments lnvestments by fair value level Government bonds Corporate bonds Common stock Total investments by fair value level c.@a!!e Receivables Accounts Assessments Due from other governments I nterest Assessments, interest Gross receivables Less allowance for uncollectibles Net total receivables Maturity 5 x,ne l,*7,@: 16050,623 S__12383191_ One Year Matures in 1-5 Years ,,rrr,ri 4,9t5,718 a,7y,4tx 3,818,776 4,915,7t8 16,0s0,623 24,785,rt7 Matures in Matures in 5.loYears 10+Yea6 Total (at Fair Value) 25,776 1,307,fiz 3,8L8,n6 4,9r5,7t8 16,050,623 ___?qg7,8sI_ The Pension Trust Fund's investments at September 30, 2016, are reported as follows: Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable ldentical Assets lnputs lnputs (Level 1) (Level 2) (Level 3) S 3,8L8,776 4,9L5,7L8 16,050,523 s 24,785,1.17 Receivables as of year-end for the City's individual major funds, non-major funds, and internal service fund, including the applicable allowances for uncollectible accounts, are as follows: Governmental Activities Business-type Activities Water and Sewer Capital Proiects Nonmajor 529,783 t,726,362-143,559 3,314 2,6s9,065 21,383,340 89,881 2,558,405 26,690,692 29,093,770 132,0771 (s44,989) 3,t92,762 21,383,340 t,869,92t 89,881 2,558,406 2,256,145 (s12,912) s t,743,233 143,559 3,314 143,5s9 3,3L4 26,658,615 28,548,72t 52 11.A.1 Packet Pg. 300 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS s.!-@@sfs For the year ended September 30,20L6, the inter-fund transfers were as follows: Transfer ln General Nonmajor Governmental Water & Sewer Total 5 Lzeg,zoz 63,205 Transfer Out Debt Service CapatalProjects 4,L65,736 L2,5W Nonmajor Enterprise 38,611 TOTAI 5,473,6LO 12,500 63,205 ____lvs,lll_5 _L,332,468_ _4,Lr8,236_ __1q99_ Transfers are used to: (1) move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due; (2) move restricted amounts from borrowings to the debt service fund to establish mandatory reserve accounts; and (3) move unrestricted general fund revenues to finance various programs and capital projects that the government must account for in other funds in accordance with budgetary authorizations. 53 11.A.1 Packet Pg. 301 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA NOTES TO FINANCIAL STATEMENTS 6.GeBilg|3ssg Capital asset balances and activity for the year ended September 30,20L6, were as follows: Betinning lncreases (Decreases) Ending Governmental Activitles Capital assets not being depreciated: Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings and improvements Vehicles and equipment Road network Storm water Pathway Parks Bridge network Beach and wateruray Total capital assets being depreciated Accumulated depreciation for: Buildings and improvements Vehicles and equipment Road network Storm water Pathway Parks Bridge network Beach and waterway Total accumulated depreciation Total capital activities being depreciated, net Total govemmental activities capital assets, net Business-type Actfu ities Capital assets not being depreciated: Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Transmission a nd distribution I nfrastructure Buildings and improvements Vehicles and equipment Total capital assets being depreciated Accumulated depreciation for: Transmission and distribution I nfrastructure Buildings and improvements Vehicles and equipment Total accumulated depreciation Total capital assets being depreciated, net Total business-type activities capital assets, net S 1s,363,360 10,724,719 26,088,079 (r0,s46,039) (10,546,039) 940,062 15,363,360 1,118,742 16,482,102940,062 '10,060,955 9,186,34'.| 44,599,'t4't 16,O45,508 3,137,643 5,816,441 1 6.734,369 442,928 309,420 1,831,296 I,984,463 723,781 '1,433,222 49,439 8,760,877 494,230 (161,719) '10,370,375 '10,855,9 t8 46,583,604 16,769,289 4,570,865 5,865,880 25,495,246 937,1 58 106,023,326 15,586,728 (161,71 9)'121,448,335 (4,370,039) (7,456,e43) (29,837,786) (7,167,573) (2,027,9a) (1,s43,817) (s,810,701 ) (287,666) (58,502,473) 47,520,853 (404,M9) (1,1'.19,7251 (3,292,*21 (1,O27,044\ 046,609) (30o,607) (474,450) (57,67s) (6,82.,741) 8,763,987 16'l,7't 9 1 61,7 t9 @,n4,088\ (8,414,949) (33,130,368) (8,194,617) (2,174,ss71 (1,U4,424) (6,285,1s1 ) (34s,341 ) (65,163,495) 56,284,840 73,608,932 9,7M,049 (10,s46,039)72,7c6,512 '17,4'15,059 6.121,395 5,268,237 (5,768,304) 17,4 1 5,059 5,621,328 23,536,454 5,268,237 (s,768,304)23,036,387 126,222,65 89.'t95,785 6,7/10,659 67.873,368 135,970 4,497,1',t6 74,305 3,4'18,543 - 126,358,635 - 93,692,901 - 6,814,964 (33,423) 71,2*,48 (33,423)298,124,988290,032,477 8,125,934 (1,900,433) (10,351,2741 (266,881) (4,345,191 ) (37,899,42\ (24,286,87O) (2,62s,016) (41,401,943)33,423 (39,799,855) (34,638,144) (2,891,897) (45,713,711). (123,043,607) 175,081,381 (1O6,213,2s11 (16,863,79) 183,819,226 (8,737,845) 33,423 $ zoz,sss,eeo {3,/69,608) (s,76s,304} 't98,1l7,zGo 54 11.A.1 Packet Pg. 302 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) clw oF MARco lsLAND, FLORIDA NOTES TO FINANCIAT STATEMENTS Depreciation expense was charged to functions/programs of the City as follows: Governmenta I Activities: General government Police Services Fire and rescue Code compliance Building Services Tra nsportation Culture and recreation Total depreciation expense, governmental activities Business-type Activities Water and sewer Recreation Total depreciation expense, business-type activities Total depreciation expense 5 zoq,zql 204,395 338,296 9,753 16,317 5,961,233 88,500 6,822,74L L6,863,779 23,686,520 7. lerst Capitalized leases payable at September 30,20L6, amounted to 5870,t23. These obligations, which are collateralized by vehicles, equipment, and software have total annual installments ranging from 526,468 to 551,058 including interest ranging from L.69o/o to 4.29% and mature through 2019. The assets acquired through capital lease, as reported in the governmental activities, are as follows: s t,873,7O2 (872,759l. s ___149q&3_ L6,852,804 !0,975 S :88,s+z 308,977 L44,671 30,502 30,503 903,395 (33,2221 5 ____ 87983_ The lease agreement qualifies as a capital lease for accounting purposes and therefore will be recorded at the present value of the future minimum lease payments. The future minimum lease obligations and the net present value of these minimum lease payments, as reported in the governmental activities, as of September 30,2016, are as follows: Vehicles and Equipment Less accumulated depreciation Total 20L7 2018 2019 2020 2021 Total minimum lease payments Less amount representing interest Present value of minimum lease payments 55 11.A.1 Packet Pg. 303 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA NOTES TO FINANCIAL STATEMENTS 8. Long-term Liabilities Long-term liability activity for the year ended September 30, 2016, was as follows: Eeginning Balance Ending Balance 3.080,000 1,980,000 5,705,000 870,173 4,524,472 775,103 L,35L,227 _18,285,97s_ 3,151,280 45,405,000 ( 118,498) 5,435,000 4,277,594.. 20,136,915 61,735,000 2,5L3,O2t 313,329 541,s81 tM,3g),222 Due Within One YearAdditionsReductions Govemmental Activities Sales tax revenue bonds, 2004 General obligation bonds, 2014 Sales tax revenue bonds, 2015 Capital lmprovement Revenue Note, 2014 Capital leases Net pension liability Other post-employment benefit liability Compensated absences Total governmental activity long-term liabilities Business Activities Revenue bonds, 20O6 Revenue bonds, 20104: Pri nci pal Discount Revenue bonds, 20108 State revolving loan, 2011 Revenue bonds, 2011 Revenue bonds, 2013: Princi pal Premium other post-employment benefit liability Compensated absences Total Water and Sewer Assessment Districts Assessment revenue bonds, 2008 Assessment revenue bonds, 2008 State revolving loan, 20G2013 Assessment revenue bonds, 2009 Assessment revenue bonds, 2009 Assessment revenue bonds, 2009 Assessment revenue bonds, 2009 Assessment revenue bonds, 2010 Assessment revenue bonds, 2010 Assessment revenue bonds, 2012 Assessment revenue bonds, 2012 Assessment revenue bonds, 2013 Assessment revenue bonds, 2013 Total Assessment Districts Total business activity long-term liabilities s 2s30,000 3,825,0@ 6,04s,000 1,036,310 3,94:3,!20 695,786 t,L5/.,u5 _$ 19,629,26t S 3,/184,083 46 490 000 ( 123,6s0) 6,63s,000 4,ffi,759 23,185,453 61,995,000 z,ffi,U5 272,8r'.1, 44.2,8v L49,5/,9,tffi 1,699,6@ s36,114 35,'143,019 657,23t 1,388,79t 7,9t6,923 2to,206 7,L42,451 1,5@,668 7,269,422 1,356,959 36s,000 1,295,000 49,7n,458 1,980,000 261,456 4683,153 t76,62 919,119 8,O20,M 58,951 439,n3 498,724 (2,930,000) (74s,000) (340,000) 1427,5931 (4,101,811) (97,34s) (72t,e371 (9,363,686) (332,803) (1,08s,00o) 5,152 (20o,ooo) 1229,L6sl (3,048,s38) (260,0m) 1147,8251 (18,463) (341,026) (s,6s7,668) 755,000 385,000 345,000 369,307 288,639 _J,r42,%6_ 344,927 1,135,000 ( s,1s2) 21q@0 235,324 3,132,502 265,000 147,825 121,833 5,587,259 (101,833) 1,s97,83t tO5,796 l32,L2tl s03,993 33,370 (1,91s,155) 34,5?7,853 t,973,238 (32,t421 52s,089 33,8s1 167,920l. L,32o,87t 7r,s3t (93,748) L,823,L7s 98,733 (8,il6) 201,s60 9,28) (s7,7ss) \0u,696 @,s7L (76,319) r,433,y9 80,040 (62,600) r,206,822 6s,2r0 (56,917) r,2n,Os2 69,707 (20,000) 34s,000 20,000 (7s,m0) \22o,w 7s,000 l2,6t0,L67l 47,t8o,29r 2,696,% 5L99,339,624 498,724 (8,267,83s) 191,s70,s13 8,283,60s 56 11.A.1 Packet Pg. 304 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctrY oF MARCO ISLAND, FIORIDA NOTES TO FINANCIAL STATEMENTS Governmental Activities On August 3, 2005, the City issued sales tax revenue bonds for governmental activities for various capital improvements including transportation improvements and a new police station. The original amount of the sales tax revenue bonds was 56,000,000. The bonds are secured by proceeds of the half-cent sales tax and monies on deposit. The bonds were issued as 15-year serial bonds with interest rates varying from 3.5% to 3.9%. On November 5, 2015, the City issued a sales tax revenue bond to partially refund the Series 2005 sales tax revenue bond. The amount of the bond issued was 51,980,000 and is secured by proceeds of the half-cent sales tax and monies on deposit. The interest rate on the note is fixed at 7.3L% over 5 years. As of September 30, 2016, 51,980,000 was outstanding. Annual debt service requirements for the sales tax revenue bonds are as follows: Fiscal Year lnterest 2077 2018 2079 2020 2021. Total Principal s 385,ooo 395,000 395,000 400,000 405,000 23,416 18,307 1.3,1.33 7,926 2,653 1,980,000 65,435 On June L7,2OL4, the City issued a capital improvement note for the costs associated with the replacement of the Smokehouse Bay Bridge. The original amount of the capital improvement bond was 56,045,000.00 and secured by pledged revenues, which consist of non-ad valorem revenues budgeted, appropriated and deposited. The interest rate on the note is fixed at 2.45% over 1-5 years. As of September 30,2075, 55,705,000 was outstanding. Annual debt service requirements to maturity for the bond are as follows: FiscalYear lnterest 2017 2078 2079 2020 202t 2022-2026 2027-2030 Total Principals 345,ooo 355,000 365,000 375,000 380,000 2,050,000 1,835,000 136,099 L27,489 118,633 109,532 LOO,245 354,245 9L,697 5,705,000 7,037,940 On March 30, 2004, the City issued general obligation bonds for governmental activities for the acquisition of land, secured by ad valorem revenue and pledged with the full faith and credit of the City. The original amount of the general obligation bonds was 59,860,000. The bonds were issued as 15-year serial bonds. lnterest rates on the bonds varied from 3.L25% to 3.8%. On August 8, 2014, the City issued a general obligation bond to partially refund the Series 2004 general obligation bond. The amount of the bond issued was $3,875,000 and is secured by ad valorem revenue and pledged with full faith and credit of the City. The interest rate on the note is fixed at L.24% over 5 years. 57 11.A.1 Packet Pg. 305 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS As of September 30, 2016, 53,080,000 was outstanding. Annual debt service requirements to maturity for the note are as follows: Fiscal Year Principal S 755,ooo 765,000 775,OOO 785,000 lnterest 20L7 2018 20L9 2020 Total 38,192 28,830 19,344 9,734 _S 3,080,999_ __9qI9_ Water and Sewer On December 5, 2006, the City issued revenue bonds for business-type activities to pay the costs of constructing certain additions, extensions, supplements and replacements to the City's water and wastewater utility system. The original amount of the revenue bonds was 55,500,000, secured by a senior lien pledge on net revenues of the water and sewer fund. The bonds are issued as 15-year serial bonds with varying amounts of principal maturing each year from 5332,803 to 5445,412. The interest rate on bonds is fixed at 3.74%. As of September 30, 2015, 53,151,280 was outstanding. Annual debt service requirements to maturity for the revenue bonds are as follows: FiscalYear 20!7 2018 2079 2020 2021 2022-2024 Total Principal 5 zqq,gzl 358,150 37L,545 385,44L 399,583 1,29t,534 l_3,1s1299_ lnterest 11.2,973 99,644 85,809 77,634 56,573 74,727 ________19899_ On April L,2O7O, the City issued Series 20104 revenue bonds for business-type activities to: (1)finance or reimburse the costs of construction of planned system improvements, (2) currently refund the System's series 20094 bonds, and (3) fund a deposit to the 20104 reserve fund. The new bonds were issued on parity with the system revenue bonds series 2003, 2006, and 2008 bonds. The original amount of the revenue bonds was 550,475,000 with a discount of 5151,585. The revenue bonds are comprised of serial and term bonds of which 518,265,000 is a 15-year serial bond, 56,460,000 is a term bond due October L, 2029, yielding 4.87o/o interest, 510,020,000 is a term bond due October l, 2034, yielding 5.O3% interest, and 515,730,000 is a term bond due October L, 2040, yielding 5.70% interest. lnterest rates on the bonds vary from 3o/o lo 5%. The 15-year serial bonds are issued with varying amounts of principal maturing each year from $1,085,000 to S1,440,000. The bonds are secured by pledged revenues which consist of a senior lien pledge on net revenues of the water and sewer fund and any water and sewer capital facility fees. 58 11.A.1 Packet Pg. 306 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS As of September 30, 2OL6, 545,405,000 of the principal was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year lnterest 20t7 2018 201-9 2020 2021 2022-2026 2027-203L 2032-2036 2037-204L Total Principal S 1,135,000 1.,175,000 L,2L5,ooo 1,255,000 L,315,ooo 7,10o,ooo 8,27O,OOO 10,525,000 13,415,000 2,102,L50 2,066,O3L 2,O25,675 1,973,037 1,915,362 8,726,792 7,023,763 4,720,625 1,741,975 _s 4s,40s,000_ ____?E llo_ On April 1,2070, the City issued tax exempt series 20108 revenue bonds for business-type activities to: (1) currently refund the System's taxable series 20098 bond and (2) fund a deposit to the reserve fund. The new bonds were issued on parity with the system revenue series 2003, 2006, and 2008 bonds. The original amount of the revenue bonds was $7,365,000, of which 52,075,000 is a 10-year serial bond and 55,290,000 is a term bond due October L, 2033, yielding 6.79% interest. The 10-year serial bonds are issued with varying amounts of principal maturing each year from 5200,000 to 5250,000. lnterest rates on the bonds vary from 3.7960/o to 5.35%. The bonds are secured by pledged revenues which consist of a senior lien pledge on net revenues of the water and sewer fund and any water and sewer capital facility fees. As of September 30, 2016, 56,435,000 of the principal was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year Principal lnterest 20L7 2078 2019 2020 202L 2022-2026 2027-2037 2032-2034 Total 210,000 215,000 230,000 240,OOO 250,000 1,525,000 2,115,000 1,650,000 4L2,426 402,478 39L,300 379,078 365,090 1,551,580 938,422 L72,907 s 6,435,000 _4,614,221_ On May 75, IOLL, the City received funding under the State of Florida Department of Environmental Protection Revolving Loan Program in the amount of 55,000,000 to fund the construction of a high service pump station, a 4 MG water tank, and an operations building all associated with drinking water. ln2OL2,anadditionalS30g,320wasreceived. Fundsaresecuredbyutilitysystemrevenuesandimpact fees. Pledged revenue is a junior lien pledge of system revenue. The interest rate is fixed at 2.66% on the original loan and 2.87% on the additional loan amount. As of September 30, 20t6, the City had $4,277,594 outstanding. 59 11.A.1 Packet Pg. 307 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA NOTES TO FINANCIAT STATEMENTS Annual debt service requirements for the state revolving funding to maturity are as follows: FiscalYear lnterest 2077 2078 2019 2020 202L 2022-2026 2027-2031 Total FiscalYear Principa! S zgs,zzq 247,646 248,739 254,805 26L,650 L,4L7,547 r,679,483 L12,602 106,290 99,788 93,721 86,276 322,083 127,L50 4,277,594 941,300 On November 6, 2003, the City issued revenue bonds for business-type activities for: (1) the acquisition of certain water production, transmission, wastewater treatment and disposal facilities, and (2) the improvement of certain assets within these facilities. The original amount of the revenue bonds was 5101,115,000, in addition to a premium paid on the bonds in the amount of 5\,22L,L30. The bonds are secured by pledged revenues which consist of a senior lien pledge on net revenues of the water and sewer fund and any water and sewer capital facility fees. The City has refunded the remaining balance of this issue through the utility system refunding revenue bonds 2011 Series and 2013 Series. On August 23,2071, the City issued series 2011 in the amount of $26,253,513 million to partially refund the City's utilitysystem revenue bonds, series 2003. The fixed interest rate of Series 2011 is 2.769% over 10 years. The new bonds were issued on parity with the un-refunded portion of the utility system revenue bonds series 2003, 2006, 2008, utility system improvement and refunding revenue bonds series 2010A, and utility system refunding revenue bonds series 2O1OB. The original amount of the revenue bonds was $26,253,5L3 with a discount of 52,996,740. The bonds are secured and payable solely from the net revenues of the water and sewer system. As of September 30, 2015, S20,136,916 of the principal was outstanding. Annual debt service requirements to maturity for the revenue bonds are as follows: Principal S 3,t32,s02 3,215,703 3,305,885 3,399,663 3,492,638 3,599,523 lnterest 2017 2018 2079 2020 2021 2022 Total 51.4,222 426,317 336,O72 243,774 t47,750 49,695 S 20,i.36,91s ____]11189_ 50 11.A.1 Packet Pg. 308 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS On October 7, 2073, the City issued Series 2013 in the amount of 561,995,000 million to refund the remainderof thecity'sutilitysystemrevenue bond, Series 2003andSeries2008. Theaverage interest rate of Series 2013 is 5.0%over20years.Thenewbondswereissuedonparitywiththeutilitysystem revenue bonds series 2006, utility system improvement and refunding revenue bonds series 2010A, utility system refunding revenue bonds series 2O7OB, and utility system refunding revenue bonds series 2011. The original amount of the revenue bonds was 551,995,000 with a premium of 52,956,496. The bonds are secured and payable solely from the net revenues of the water and sewer system. As of September 30, 20L6, S61,735,000 of the principal was outstanding. Annual debt service requirements to maturity for the revenue bonds are as follows: FiscalYear 2017 2018 2019 2020 202L 2022-2026 2027-203L 2032-2034 Total Principal s 265,000 275,000 285,000 415,000 430,000 18,32s,000 24,180,000 17,560,000 l__9113!499_ lnterest 3,026,106 3,019,007 3,009,607 2,ggg,1o7 2,996,432 13,086,585 7,555,367 L,395,075 ___37,U6,286_ Sewer Assessments ln order to fund construction of the City's Septic Tank Replacement Program (STRP) wastewater utility expansion in certain areas of the City, the City has issued two types of Special Assessment lmprovement Debt. The City is acting as agent in the collection of the special assessments levied and in the payment of the Special Assessment Bonds outstanding. Such bonds are collateralized by the special assessments levied against the benefited property owners. As part of its agreement with the State of Florida Department of Environmental Protection, the City agreed to a covenant to budget and appropriate legally available funds in the event collection assessments are insufficient and thus the City has a legal obligation to cover deficiencies in the event of default for loans obtained through the State Revolving- Loan Fund (SRF) Program. Special assessment debt obtained through other non-SRF bank loans are backed solely by assessment revenue. The City's obligation for the non-SRF bank loan special assessment debt is limited to payments on behalf of those property owners who have entered into deferred payment agreements with the City and the City has not made any indication that it has a legal or moral obligation for any other portion of these non-SRF bank loan debts. On March 7,2008, the City issued special assessment revenue bonds to pay the costs of the subordinate wastewater improvement project for the Tigertail District in the amount of 52,321,886 and is secured by capacity and construction assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from $101,833 to 5164,258. The interest rate on the bonds is fixed at 4.07%. 51 11.A.1 Packet Pg. 309 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) clTY oF MARCO tStAND, FIORIDA NOTES TO FINANCIAL STATEMENTS As of September 30, 2015, 51,597,831 was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year lnterest 2017 2018 20L9 2020 2027 2022-2026 2027-2028 Total Principal s 10s,796 L70,215 LL4,758 tlg,424 L24,t52 70L,325 322,LOL 62,830 58,438 53,865 49,233 44,754 139,217 13,28L 42L,078 On March 7,2008, the City issued special assessment revenue bonds to pay the costs of the wastewater improvement project for the South Barfield District. The original amount of the revenue bonds was 5732,378 and is secured by capacity and construction assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 532,121- to 55t,gtt. The interest rate on the bonds is fixed at 4.OLo/o. As of September 30, 2015, 5503,993 was outstanding. Annual debt service requirements for the revenue bonds to maturity are as follows: Fiscal Year Principal lnterest l_1I9191_ 2017 2018 2079 2020 2021 2022-2026 2027-2028 Total 33,370 34,783 35,198 37,669 39,160 227,215 101,598 19,818 18,433 16,990 L5,529 t3,927 43,9L2 4,189 l__lgg8gg_ _1nJs8_ The City received additional funding under the State of Florida Department of Environmental Protection Revolving Loan Program in 2007 through 2013. Funds are utilized for neighborhood construction of the Septic Tank Replacement Program and are secured by assessments against individual properties, with a back-up covenant to budget and appropriate additional funds as necessary. lnterest rates range from 2.6% to 3.8%. As of September 30, 20L6, $34,527,853 was outstanding. Annual debt service requirements for the state revolving funding are as follows: Fiscal Year Principal 5 L,973,238 2,033,082 2,094,753 2,t58,307 2,223,802 12,L74,706 70,643,786 L,226,779 l_14,srE!3_ 20t7 2018 20L9 2020 2021 2022-2026 2027-203L 2032 Total L,020,52t 960,680 899,009 835,45s 769,950 2,795,r58 934,727 27,718 8,243,228 62 11.A.1 Packet Pg. 310 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS On July 2L,20019, the City issued special assessment revenue bonds to pay the costs of the subordinate wastewater improvement project for the North Marco District. The original amount of the revenue bonds is 5840,000 and is secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 532,142 to 555,375. The interest rate on the bonds is fixed at 5.54%. As of September 30, 2016, 5625,089 was outstanding. Annual debt service requirements to maturity for the revenue bonds are as follows: Fiscal Year Principal lnterest 2OL7 s 33,851 34,168 20L8 35,849 32,217 20L9 37,863 30,147 2020 39,989 28,029 202L 42,t62 25,649 2022-2026 793,974 88,871 2027-2029 24t,407 15,095 Total s 625,089 255,L64 On July 21,2009, the City issued specialassessment revenue bonds to pay the costs of the wastewater improvement project for the North Barfield District. The original amount of the revenue bonds is S1,775,000 and is secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 567,920 to 5138,147. The interest rate on the bonds is fixed at 5.54o/o. As of September 30, 20L6, 5L,320,871 was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year lnterest 20t7 20L8 20L9 2020 202L 2022-2026 2027-2029 Total Principal s 71,531 75,752 80,007 94,501 gg,0g3 527,L59 392,828 72,2OO 58,055 53,691 59,227 54,Lgg L87,793 34,012 5 1,320,977 539,186 On July 21,2009, the City issued special assessment revenue bonds for business-type activities to pay the costs of the subordinate wastewater improvement project for the West Winterberry District. The original amount of the revenue bonds was not to exceed 52,450,000 and is secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 593,748 to 5190,681. The interest rate on the bonds is fixed at 5.54%. 53 11.A.1 Packet Pg. 311 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS As of September 30, 2076, 5L,823,175 was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year Principal lnterest 2077 20L8 20t9 2020 2021 2022-2026 2027-2029 Total 98,733 104,560 110,433 716,636 722,973 727,628 542,272 99,6s7 93,949 87,912 81,751 74,808 2s9,2LO 46,946 744,2331,823,L75 On July, 21., 2009, the City issued taxable special assessment revenue bonds to pay the costs of the wastewater improvement project for the Old Marco District. The original amount of the revenue bonds is 5260,000 and is secured by capacity and construction assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 58,645 to 523,593. The interest rate on the bonds is fixed al7.960/o. As of September 30, 2016,5207,550 was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year On March 2,2OLO, the City issued specialassessment revenue bonds for business-type activities to pay the costs of the subordinate wastewater improvement project for the Lamplighter District. The original amount of the revenue bonds was not to exceed S1,400,000 and is secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 557,755 to 5tt0,772. The interest rate on the bonds is fixed at 5.07%. As of September 30, 20L6, 51,084,696 was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year Principal 2017 2018 20L9 2020 2021 2022-2026 2027-2029 Total PrincipalS s,zgs 10,094 10,909 77,799 12,706 80,830 65,933 i__?qr99_ 15,895 15,113 14,265 13,385 12,362 43,969 8,291 L23,270 54,274 5L,Ot7 47,652 M,230 40,396 139,231 25,018 2017 2078 2019 2020 2021 2022-2026 2027-2029 Total 60,57L 63,837 67,119 70,569 74,O80 336,839 41L,687 s 1,084,696 ______40!;7s8_ 64 11.A.1 Packet Pg. 312 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS On March 2,20t0, the City issued specialassessment revenue bonds for business-type activities to pay the costs of the subordinate wastewater improvement project for the Sheffield District. The original amount of the revenue bonds was not to exceed 51,850,000 and is secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from $76,319 to 5145,377. The interest rate on the bonds is fixed at 5.07%. As of September 30, 20L6, 5L,433,349 was outstanding. Annual debt service requirements for the revenue bonds are as follows: FiscalYear !nterest 2017 2018 2079 2020 202L 2022-2026 2027-2029 Total Principal S 8o,o4o 84,356 88,692 93,252 97,gg2 57L,069 7L,640 67,4L5 62,969 58,M6 53,381 183,983 478,048 33,050 s 1,433,349 _530,991_ On March l, 2OL2, the City issued special assessment revenue bonds for business-type activities for the Mackle Park District. The revenue bonds are for 51,550,000 and are secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 566,917 to 5232,372. The interest rate on the bonds is fixed at 4.L7%. As of September 30, 2OL6, 5L,290,052 was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fisca! Year !nterest 20L7 2018 20L9 2020 2027 2022-2026 2027-2030 Total Principal $ 69,107 72,6t4 75,642 78,796 82,092 464,699 446,5L2 52,342 49,374 46,283 43,063 39,709 r43,L25 38,190 _S 1,290,052_ ______4n,og6_ On March 1, 2012, the City issued special assessment revenue bonds for business-type activities for the Kendall District. The revenue bonds are for 51,450,000 and are secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 562,600 to 5217,379. The interest rate on the bonds is fixed at 4.77%. As of Septe m be r 30, 20t6, 57,206,822 was o utsta nd i n g. 65 11.A.1 Packet Pg. 313 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctTY oF MARCO ISLAND, FLORTDA NOTES TO FINANCIAL STATEMENTS Annual debt service requirements for the revenue bonds are as follows: Fiscal Year Principal s 55,210 67,929 70,752 73,773 76,787 434,7L9 4L7,702 5 L,2O6,822 !nterest 20L7 2018 2019 2020 2027 2022-2026 2027-2030 Total 49,965 46,189 43,297 40,285 37,L47 133,890 35,723 385,495 On August L,2013, the City issued special assessment revenue bonds for business-type activities for the Gulfport District. The revenue bonds are for 51,430,000 and are secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 575,000 to 5115,000. The interest rate on the bonds is fixed at 3.5%. As of September 30,20L6, SL,22O,O0O was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year lnterest 2077 20t8 20t9 2020 202L 2022-2026 2027-2029 Total PrincipalS 7s,ooo 80,000 80,000 8s,000 85,000 48s,000 330,000 42,570 39,780 36,900 33,930 30,870 104,310 18,180 l__1,229!99_ ______ J99f19_ On August l,2OL3, the City issued special assessment revenue bonds for business-type activities for the East Winterberry North District. The revenue bonds are for S39S,000 and are secured by capacity assessments on individual properties within the District. The bonds have varying amounts of principal maturing each year ranging from 520,000 to 535,000. The interest rate on the bonds is fixed at3.6%. As of September 30, 2016, 5345,000 was outstanding. Annual debt service requirements for the revenue bonds are as follows: Fiscal Year 2077 2018 20t9 2020 2021 2022-2026 2027-2029 Tota I 72,060 11,340 10,530 9,530 8,730 29,790 5,310 Principal s 20,000 20,000 25,000 25,000 25,000 135,000 95,000 Interest l__r11999_ _________!2a99_ 55 11.A.1 Packet Pg. 314 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS During 2005, the City began a project to plan, design, and construct major renovations to its wastewater plant. The renovation project was divided into 17 different assessment districts. Each property owner of each district is to be assessed both a capacity charge to cover plant construction and new force mains and a construction charge based on each resident's number of required connections. These assessments are 54,610 per Equivalent Residential Connection (ERC) for the capacity portion and from S12,000 to S15,000 per property for the construction portion. Construction was completed fortwo districts in2OO7; Tigertailand South Barfield. ln 2008, an additional five districts were completed, North Barfield, West Winterberry, North Marco, Old Marco, and Port Marco. ln 2009, Sheffield and Lamplighter were completed. ln 2010, Kendall and Mackle Park districts were completed. ln 2011, Gulfport, East Winterberry North, and East Winterberry South districts were completed. ln 2012, Copperfield and Goldenrod districts were completed. The final and largest district, Estates, was completed in 2013, completing the work of the Septic Tank Replacement Program (STRP). Costs related to each project were accumulated and paid as each project progressed. Property owners were not assessed until the project was completed, that is, when the assessment becomes legal, unless the property owner previously opted to lock in a rate based on 2006 construction costs. Property owners have three distinct payment options: (1) (21 (3) Cash payment lnstallment payments over 20 years on their non-ad valorem property tax bill with interest at 5.57o/o. Payment is due in full upon sale or transfer of the property; or Defer principal and interest at 5.9% for 20 years. Similarly, payment is due in full upon sale of the property. The City has recognized revenue related to the full amounts assessed on completed projects. Revenue in relation to these assessments has been recognized as capital contributions on the water and sewer fund's statement of revenues, expenses, and changes in fund net position. Assessments receivable and assessments interest receivable have been recognized in the water and sewer fund's statement of net position in relation to property owners paying on the payment terms outlined above. The current portion of the assessment receivable relates to the portion of payment option 2 above which will be received in the 2016 fiscal year. ln addition to the assessments noted above, each property owner is responsible for the actual cost of connecting to the sewer line and abandoning their septic tank or other existing system. The property owner is responsible for selecting the contractor who will perform the work on the property. 67 11.A.1 Packet Pg. 315 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS s. B!s[-l4glec@E! The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. Effective October 7, 2OO4, the City became self- insured for the following types of risks: 1. Workers'Compensation 2. Public Officials' Liability 3. General and Property Liability 4. Automobile Liability 5. Crime and Theft Liability Prior to October l, 2004, the City was insured against these losses with a commercial insurance agreement with the Florida League of Cities, lnc. under a retrospectively rated policy. Premiums were accrued based upon the ultimate cost-to-date of the City's experience for each type of risk. The City entered into an agreement with an insurance administrator to reduce the potential for significant risk. The agreement has a deductible per claim of 5350,000 for workers' compensation, $10,000 for crime and 5100,000 for third party liability. Additionally, the agreement has a stop-loss policy which caps the aggregate annual loss for the City at 51,000,000. The stop loss covers excess worke/s compensation, general, law enforcement, automobile, public officials and employment practices liability. Settlements have not exceeded coverage for each ofthe past three years. Liabilities are reported when it is probable that a loss occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (lBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of these factors. Changes in the balances of claims liabilities during the prior two fiscal years are as follows: Estimated unpaid claims, October t,2074 lncurred claims (including IBNRs) Claim payments Estimated unpaid claims, September 30, 2015 lncurred claims (including IBNRs) Claim payments Estimated unpaid claims, September 30,20t6 $ zzl,glq 856,185 (971,888) 222,t7! L,O23,t45 (1,045,620) 199,696 68 11.A.1 Packet Pg. 316 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISI.AND, FLORIDA NOTES TO FINANCIAT STATEMENTS 10. Contineent Liabilities Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the Federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. The City is currently a defendant in one lawsuit. Further details have been included in the subsequent events note for cases settled after year end. The resolution of these matters did not have a material adverse effect on the financial condition of the City. 11.@l!!!stg The City has numerous active construction projects. As of September 30, 2016, the City's commitments with contractors are as follows: Mackle Park Community Center - Design Mackle Park Community Center - Construction N. Barfield Shared Use Pathway - Engineering Linear Trail Park Shared Use Pathway - Engineering Smokehouse Bay Bridge - Engineering Yel lowbird Street lmprove ments Bayport/Tahiti Storm Total 6ovemmental Proiects RWPF Headworks Replacement Sewer & Manhole Maintenance RWPF MLE Tank 1 NWTP Surface Water Marco Shores Alternative Total Business-type Proiects Victor J Latavish, Architect R.E. Crawford Construction Kimley Horn Kimley Horn Ty-Lin lnternational Hole t\4ontes, lnc C&W Pipeline Florida Design Contractors lnc. LMK Pipe Renewal LLC Cypress Construction & Coating CH2M Hill, lnc AECOM S 383,360 2,713,N6 152,t47 93,798 530,157 3t2,@2 670,827 s -!w-S 5,134,000 %7,@3 343,094 183,075 499,886 5 ___ iln_;l*_ Comdeted to Date 299,167 263,789 138,615 85,138 545,444 23,98 -----_----:_--141- 4,L76,323 324,599 255,269 87,738 272,895 ___1,05$,824_ Contractor Contract Amount Balance 84,193 2,449,6t7 t3,532 8,660 24,7L3 288,654 670,827 _:419199_ 957,677 243,W 87,825 95,337 2U6,9t _____1,679,e14_ 12. Emolovee Retirement Svstems and Pensions Plans (a) The City of Marco lsland Firefighters' Pension Plan Plan Description Plan Administration: The City administers a single-employer, defined benefit pension plan (the "Plan"l that covers all fulltime firefighters hired after January 1, 1996. The Plan was created by Ordinance of the City Council which grants the authority to establish and amend the benefit terms to the Board of Trustees, subject to City Council approval. Management of the Plan is vested in the Board of Trustees, which consists of five members, two of whom are current or retired members of the Plan, one is a City resident, one is a City employee, and one of whom is appointed by the City Council from non- members of the Plan. The Plan does not prepare separate financial statements and is included as part of the pension trust funds in the City's financial reporting entity since it is not legally separate from the City. 59 11.A.1 Packet Pg. 317 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctTY oF MARCO tSlAND, FLORTDA NOTES TO FINANCIAL STATEMENTS Plan Membership: As of October L, 2OL4, (date of the latest annual actuarial membership data related to the Plan were: lnactive Plan Members or Beneficiaries Currently Receiving Benefits lnactive Plan Members Entitled to But Not Yet Receiving Benefits Active Plan Members valuation), employee 1 0 29 3o Benefits Provided: The Plan provides retirement benefits, deferred allowances, and death and disability benefits. A participant may retire after reaching the age of 55, with six or more years of service, or after accumulating twenty-five years of service with the City, regardless of age. Retired employees or their beneficiaries are entitled to pension payments for the longer of ten years or the retirees' remaining life equal to 3o/o of their final five-year average compensation times the number of years of credited service. The final five-year average compensation is the average annual compensation of the five highest years within the last ten years of service. Compensation includes overtime, but excludes lump-sum payments of unused leave. Maximum annual pension payments to retirees are the lesser of SSO,OOO or IOO% of the average aggregate compensation for the three consecutive calendar years during which the firefighter was an active member and had his/her highest aggregate compensation. An additional supplemental benefit is also payable in the monthly amount of 53 multiplied by credited service. Early retirement is available at age 50, with six years of credited service, with the benefit reduced by 3% per year for each year early. Delayed retirement is permitted, with the benefit calculated the same as the normal retirement benefit, but based on credited service and average final compensation as of the actual retirement date. Participants are not vested until they reach six years of service, at which time they become 100% vested. Terminated non-vested employees receive refunds of their accumulated member contribution only. Terminated vested employees receive their vested accrued benefit payable at early (after reduction) or normal retirement. Pension provisions include disability benefits, whereby a disabled employee is entitled to receive the greater of the normal retirement benefits or a percentage of the five-year average annual compensation g2% rt service incurred or 25% if non-service incurred). Pension provisions also include death benefits, whereby the surviving spouse is entitled to receive the vested pension benefit over ten years. Plan amendments are initiated by the Pension Board, and adopted by City Ordinance, after the required public hearings. The cost of administering the Plan is financed by contributions made to the Plan. Benefit terms provide for a 3% annual cost-of-living adjustment to each membe/s retirement allowance subsequent to the membe/s retirement date. 70 11.A.1 Packet Pg. 318 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctTY oF MARCO ISLAND, FIORIDA NOTES TO FINANCIAL STATEMENTS Contributions: The City Ordinance grants the Board of Trustees authority to establish and amend the contribution requirements of the City and active plan members. The Board establishes rates based on an actuarially determined rate recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by plan members during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of plan members. For the year ended September 30,2076, the active member contribution rate was L%o, which the City contributes based on the collective bargaining agreement, and the City's contribution rate was 43.82%. The State of Florida contributes casualty insurance premium taxes pursuant to Chapter 185, Florida Statutes, and the City contributes the required remaining balance, as determined by the actuary. The City recognized these on-behalf payments from the State as revenues and expenditures in the governmental fund financial statements. The City makes periodic contributions totaling tOOo/o of the actuarially determined amount (after state contributions) annually to the Plan. An actuarial valuation of the Plan is to be completed at least once every two years. Contributions for the fiscal year ended September 30, 2016, were based on actuarial computations performed for 2016, in the actuarial report dated October l, 2OL4- Net Pension Liabilitv of the Citv The components of the net pension liability of the City at September 30, 2015, were as follows: Total pension liability Plan fiduciary net position City's net pension liability Plan fiduciary net position as a percentage of the total pension liability lnf lation Salary increases 2.5% 7 .5% to 13.0% based on service, including inflation. s 13,998,s69 12,990,030 s 1,008,s39 92.8@/o The required schedule of changes in the City's net pension liability and related ratios immediately following the notes to the financial statements presents multiyear trend information about whether the value of plan assets is increasing or decreasing over time relative to the total pension liability. Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of September 30, 20L4, with update procedures performed by the actuary to roll forward to the total pension liability measured as of September30,2015. Thefollowingactuarialassumptions, applied to all periods included in the measurement: lnvestment rate of return 7.0%o, net of pension plan investment expense, including inflation. Mortality rates were based on the RP-2000 Healthy Annuitant Mortality Table for Males or Females, as appropriate. The actuarial assumptions used in the September 30, 2014, valuation were based on the results of an actuarial experience study for the period October L,2073 - September 30,2014. 7t 11.A.1 Packet Pg. 319 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISIAND, FLORIDA NOTES TO FINANCIAL STATEMENTS The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of September 30, 20L6, are: Domestic Equity Securities - 9.83o/o, lnternational EquitySecurities -8.80%, and Fixed lncome Securities -1,.2%. Discount rate: The discount rate used to measure the total pension liability wasT.OOo/o. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The discount rate of 7.OOo/o was the single rate which, when applied to all projected benefit payments, resulted in the same present value of benefit payments when the above discussed calculations are combined. Changes in the Net Pension Liabilitv of the Citv: The changes in the components of the net pension liability of the City for the year ended June 30, 2016, were as follows: Total Pension Liability s 11,9s6,880 Plan Fiduciary Net Position (bl S 11,078,100 Net Pension Liability (al - (bl s 878,780Balances at 9fi!0/15 Changes for the year: Service cost I nte rest Differences between expected and actual experience Assumption Changes Contributions - employer (from city) Contributions - employer (from state) Contributions - employee Net investment income Benefit payments, including refunds of employee contri butions Admi nistrative expense Other changes Net changes Balances at 9/30/16 824,223 893,422 (3s,8&1) 359,928 r,zr.o,rss 433,853 20,798 (181,460) (41,s4s) (3s,884) 824,223 893,422 ( 1,715,1s8) (433,863) (20,7981 181,460 5,651 35,84r 359,928 729,759 s 1,008,s39 1,911,930 _S 1r,990,030- The Plan's fiduciary net position as a percentaBe of the total pension liability The required schedule of changes in the City's net pension liability and related ratios immediately following the notes to the financial statements presents multiyear trend information about whether the value of plan assets is increasing or decreasing over time relative to the total pension liability. 2,UL,689 s 13,998,s69 72 11.A.1 Packet Pg. 320 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctrY oF MARCO tSt-AND, FLORTDA NOTES TO FINANCIAT STATEMENTS Sensitivitv of the net pension liabilitv to chanses in the discount rate: The following presents the net pension liability of the City, calculated using the discount rate of 7.OO%, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%)than the current rate: Current 1% Decrease Discount Rate 1% lncrease G.e/"| l7.e/,1 l&.w.l City's net pension liability $ 2,@s,L76 s 1,00&s38 s (2s0,236) Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Actuarial calculations reflect a long-term perspective. Calculations are based on the substantive plan in effect as September 30, 20t6, and the current sharing pattern of costs between employer and employee. Pension Expense and Deferred Outflows of Resources and Deferred lnflows of Resources Related to Pensions For the year ended June 30, 2015, the City recognized pension expense of 5L,460,763. At September 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred lnflows of Resources City contributions subsequent to the measurement date \,529,461 Total 5 _____2,4N,173_ S __________91,69!_ City contributions subsequent to the measurement date of 51,,529,451 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ending September 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Differences between expected and actual experience $ Net difference between projected and actual earnings on pension plan investments Year Ended September 30: 20L7 2018 2019 2020 202L Thereafter Total - S 81,eos 870,772 5 zo,q@ 272,N9 272,48 L97,218 (9,067) {.36,270l. 5 _189,Lw_ 73 11.A.1 Packet Pg. 321 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAT STATEMENTS (b) The City of Marco lsland Police Officers' Pension Plan Plan Description Plan Administration: ln 2005, the City established and currently administers a single-employer, defined benefit pension plan (the Plan) that covers all full-time sworn police officers. The Plan was created by Ordinance of the City Council which grants the authority to establish and amend the benefit terms to the Board of Trustees, subject to City Council approval. Management of the Plan is vested in the Board of Trustees, which consists of five members, two of whom are current or retired members of the Plan, one is a City resident, one is a City employee, and one of whom is appointed by the City Council from non-members of the Plan. The Plan does not prepare separate financial statements and is included as part of the pension trust fund in the City's financial reporting entity since it is not legally separate. Plan Membership: At September 30, 2015, pension plan membership consisted of the following: lnactive Plan Members or Beneficiaries Currently Receiving Benefits lnactive Plan Members Entitled to But Not Yet Receiving Benefits Active Plan Members Benefits Provided: The Plan provides retirement benefits, deferred allowances, disability benefits. A participant may retire after reaching the age of 55, with six service, or accumulating twenty-five years of service with the City, regardless of age. 11 16 33---------E- and death and or more years of Retired employees or their beneficiaries are entitled to pension payments for the longer of ten years or the retirees'remaining life equal lo3o/o of theirfinal five-year average compensation times the number of years of credited service. The final five-year average compensation is the average annual compensation of the five highest years within the last ten years of service. Compensation includes overtime of up to 300 hours annually and lump-sum payments of unused leave, but excludes pay for special duty or extra-details. An additional supplemental benefit is also payable in the monthly amount of 53, multiplied by credited service. Early retirement is available at age 50, with six years of credited service, with the benefit reduced by 3% per year for each year early. Participants are not vested until they reach six years of service, at which time they become 100% vested. Terminated non-vested employees receive refunds of their accumulated member contribution only. Terminated vested employees receive their vested accrued benefit payable at normal retirement. Pension provisions include disability benefits, whereby a disabled employee is entitled to receive the greater of the normal retirement benefits or a percentage of the five-year average annual compensation (42% if service incurred or 25% if non-service incurred, provided the employee has at least eight years of credited service). Pension provisions also include death benefits, whereby the surviving spouse is entitled to receive the vested pension benefit over ten years. Plan amendments are initiated by the Pension Board, and adopted by City Ordinance, after the required public hearings. The cost of administering the Plan is financed by contributions made to the Plan. 74 11.A.1 Packet Pg. 322 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAT STATEMENTS Benefit terms provide for a 3Yo annual cost-of-living adjustment to each member's retirement allowance subsequent to the member's retirement date. Contributions: The City Ordinance grants the Board of Trustees authority to establish and amend the contribution requirements of the City and active plan members. The Board establishes rates based on an actuarially determined rate recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by plan members during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of plan members. For the year ended September 30, 2076, the active member contribution rate was 0.5%, which the City contributes based on the collective bargaining agreement, and the City's contribution rate was 32.59%. The State of Florida contributes casualty insurance premium taxes pursuant to Chapter 185, Florida Statutes, and the City contributes the required remaining balance, as determined by the actuary. The City recognized these on-behalf payments from the State as revenues and expenditu res in the governmenta I fu nd fina ncia I statements. The City makes periodic contributions totaling LOO% of the actuarially determined amount (after state contributions) annually to the Plan. An actuarial valuation of the Plan is to be completed at least once every two years. Contributions for the fiscal year ended September 30, 2016, were based on actuarial computations performed for 20L6, in the actuarial report dated October L,2OL4. Net Pension Liabaliw of the CiW The components of the net pension liability of the City at September 30,20L6, were as follows: Total pension liability Plan fiduciary net position City's net pension liability Plan fiduciary net position as a percentage of the total pension liability S 10,799,9ss 8,7L2,027 5 2,087,928 80.67Yo The required schedule of changes in the City's net pension liability and related ratios immediately following the notes to the financial statements presents multiyear trend information about whether the value of plan assets is increasing or decreasing over time relative to the total pension liability. Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of October 7,2075, with update procedures performed by the actuary to roll fonvard to the total pension liability measured as of September 30, 2016. The following actuarial assumptions, applied to all periods included in the measurement: lnflation Salary increases lnvestment rate of return 2.3% 6.0% on average, including inflation. 7 .5 %, net of pension plan investment expense, including inflation. Mortality rates were based on the RP-2000 Healthy Annuitant Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. 75 11.A.1 Packet Pg. 323 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS The actuarial assumptions used in the October, L 20L5, valuation were based on the results of an actuarial experience study for the period October L,2014 - September 30, 2015. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of September 30,2076, are: Domestic Equity Securities -7.7%,lnternational Equity Securities, -7.3% and Fixed lncome Securities -2.5%. Discount rate: The discount rate used to measure the total pension liability was7.5%o. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to projected benefit payments to determine the total pension liability. Changes in the Net Pension Liabilitv of the Citv: The changes in the components of the net pension liability of the City for the year ended September 30,20L6, were as follows: Total Pension Plan Fiduciary Net Pension Uability Net Position Uability (a) (b) (a) - (b) S 9,s30,334 5 7,3s9,3t7 S 2,Lt7,oL7Balances at 9/30/15 Changes for the year: Service cost I nte rest Differences between expected and actual experience Assumption Changes Contributions - employer (from city) Contributions - employer (from state) Contri butions - employee Net investment income Benefit payments, including refunds of employee contributions Admi nistrative expense Other changes Net changes Balances at 9/3O116 623,438 754,375 72,789 (188,60' 7,624 1,269,621 l_42929!r t,499,693 t61,276 10,596 (73,9731 ( 188,6Os) (s6,2771 623,438 754,375 72,789 (1,499,693) 1t67,276r, ( 10,s96) 73,973 56,277 7,624 7,352,770 (83,089) _s___8,r12,0n_ j_2,ou,e28 The Plan's fiducaary net position as a percentage of the total pension liability w.7% The required schedule of changes in the City's net pension liability and related ratios immediately following the notes to the financial statements presents multiyear trend information about whether the value of plan assets is increasing or decreasing over time relative to the total pension liability. Sensitivitv of the net pension liabilitv to changes in the discount rate: The following presents the net pension liability of the City, calculated using the discount rate of 7.5o/o, ?S well as what the City's net pension liability would be if it were calculated using a discount rate that is l-percentage-point lower (6.5%l or 1-percentage-point higher (8.5o/o) than the current rate: 76 11.A.1 Packet Pg. 324 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA NOTES TO FINANCIAL STATEMENTS City's net pension liability Year Ended September 30: 20!7 2018 2019 2020 202L Thereafter Total Current 1% Decrease Discount Rate 1% lncrease (6.50/ol l7.s%l (8.syol 5 3,644,459 S 2,@7,928 S tU,AtA 2,350,251 5 _2,9t3,491_ S S t+z,ogg L42,683 t42,695 135,189 Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Actuarial calculations reflect a long-term perspective. Calculations are based on the substantive plan in effect as of September 30, 2016, and the current sharing pattern of costs between employer and employee. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 20L6, the City recognized pension expense of 5971,833. At September 30,20L6, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of lnflows of Resources Resources Differences between expected and actual experience S 54,591 S Net difference between projected and actual earnings on pension plan investments 5C4,649 City contributions subsequent to the measurement date Total City contributions subsequent to the measurement date of $2,350,251 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ending September 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: s _______191?19_ 77 11.A.1 Packet Pg. 325 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS (c) Statement of Fiduciary Net Position for the Pension Trust Funds The combining statement of fiduciary net position for the pension trust funds as of September 30, 2015, is as follows: Fire Police Pension Pension Total Penslon Trust Funds Assets Cash and cash equivalents Accounts Receivable lnvestments, at fai r val ue : Government bonds Corporate bonds Common stock ETF's & CEF's Accrued interest Total Assets Liabilities Accounts payable Total Liabilities Net Position s 589,226 389,408 t,332,778 389,408 3,8\8,776 4,915,718 t5,976,507 74,L76 7,747 25,515,050 643,552 2,t@,774 1,650,@2 2,808,033 2,707,85 9,011,063 6,965,444 42,L44 37,972 44Os 3,v2 t5,L12,453 LL,&2,597 Held in trust for pension benefits S_15,112,453 _11,402,597_ ____?qIil!q_ (d) Statement of Changes in Fiduciary Net Position for the Pension Trust Funds The combining statement of changes in fiduciary net position for the pension trust funds as of September 30,2OL6, is as follows: Fire Police Total Pension Pension Pension Trust Funds Additions Contributions Employer Employee State of Florida Total contributions lnvestment earnings lnvestment interest and dividends Net change in fai r value of investments Less: lnvestment exPenses Net investment earnings Total Additions Deductions Legal Actuary Administrative Benefits paid Total Deductions Change in Net Position Net Position, october 1,2015 Net Position, September !10, 2015 s 1,14O,0s3 22,q7 389,408 1,5s1868 23t,@L 5&s,196 ( 113,s3s) 702,748 2,25/.,6L6 L4,652 t4,il3 13,500 89,398 L32,193 2,155,279 11,@0 794,972 2,36t,341 t67,U9 50s,891 177,7@l 595,780 2,957,72L tL,254 16,140 L4,24t 224,9L6 266,551 3,295,332 33,497 584,380 3,913,209 398,7N 1,091,087 (191,299) L,298,528 5,21L,737 25,ffi n,783 27,741 3L4,314 398,7M 2,t22,423 2,690,570 12,990,030 8,7L2,O27 4,8t2,E)3 2t,702,057 s 15,112,453 7t,4O2,597 26,515,050 78 11.A.1 Packet Pg. 326 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctw oF MARco lsLAND, FtoRlDA NOTES TO FINANCIAL STATEMENTS (e) The Florida Retirement System Plan, Firefighters General lnformation about the Florida Retirement Svstem (FRSI The FRS was created in Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS lnvestment Plan. Chapter 112, Florida Statutes, established the Retiree Health lnsurance Subsidy (HlS) Program, a cost-sharing multiple-employer defined benefit pension plan to assist retired members of any State-administered retirement system in paying the costs of health insurance. Provisions relating to the FRS are established by Chapters 121 and L22, Florida Statutes; Chapter 1.12, Part lV, Florida Statutes; Chapter 238, Florida Statutes; and Florida Retirement System Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of two cost-sharing multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.d ms. myflorida.com ). FRS Pension Plan Plon Description. The Marco lsland lndependent Fire Protection District provided fire and rescue services to the community prior to incorporation in 1997. Employees hired by the District prior to December 31, 1995, participated in the pension plan provided by the Florida Retirement System (the System). These "old hire" employees were allowed to continue membership in the System both after the incorporation of the City and the establishment of the City of Marco lsland Firefighters' Pension Plan (as noted above). The FRS Pension Plan (Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP)for eligible employees. The general classes of membership are as follows: o Speciol Risk Closs - Members who are employed as law enforcement officers and meet the criteria to qualify for this class. Employees enrolled in the Plan prior to July 1, 2011, vest at 5 years of creditable service and employees enrolled in the Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members classified as special risk, enrolled prior to July 1, 20LL, are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members classified as special risk enrolled in the Plan on or after July L, }Ott, once vested, are eligible for normal retirement benefits at age 50 or any time after 30 years of creditable service. Employees enrolled in the Plan may include up to 4 years of credit for military service toward creditable service. The Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. 79 11.A.1 Packet Pg. 327 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS DROP, subject to provisions of Section LZL.O9L, Florida Statutes, permits employees eligible for normal retirement under the Plan to defer receipt of monthly benefit payments while continuing employment with an FRS-participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided. Benefits under the Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on retirement plan and/or the class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. The following chart shows the percentage value for each year of service credit earned: Ctass, tnitial Enrollment, and Retirement Age/Years of Service Y"Value Regular Class members initially enrolled before July 1, 2O11 Retirement up to age 62 or up to 30years of service Retirement at age 63 or with 31 years of service Retirement at age 64 or with 32 years of service Retirement at age 65 or with 33 or more years of service Regular Class members initially enrolled on or after July 1, 2O11 Retirement up to age 55 or up to 33 years of service Retirement at age 66 or with 34years of service Retirement at age 67 or with 35 years of service Retirement at age 68 or with 36 or more years of service Special Risk Regular Service from December L, 7970 through September 30, a974 Service on and after October t, L974 Senior Management Service Class 1.60 1.63 1.65 1.58 L.50 1.63 1.65 1.68 2.OO 3.OO 2.OO As provided in Section 1Z1-.LO1-, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2OLt, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. lf the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the preJuly 2011 service credit by the total service credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. 80 11.A.1 Packet Pg. 328 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAT STATEMENTS Contributions. The Florida Legislature establishes contribution rates for participating employers and \/ employees. Percent of Gross Salary Class Employee Employer (1) FRS, Special Risk 3.00 22.57 Defened Retirement Option Program - Applicable to Members from All of the Above Classes 0.00 12.99 FRS, Reemployed Retiree (2) (2) Notes: (1) Employer rates include 1.66% for the postemployment health insurance subsidy. Also, employer rates, other than for DROP participants, include 0.05% for administrative costs of the lnvestment Plan. (2) Contribution rates are dependent upon retirement class in which reemployed. The City's contributions, including employee contributions, to the defined benefit pension plan totaled S111,998 for the fiscal year ended June 30, 2016, excluding HIS plan contributions. Pension Liobilities, Pension Expense, ond Deferred Outflows of Resources and Deferred lnflows of Resources Reloted to Pensions. At June 30, 20L6, the City reported a liability of 51,159,635 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 7, 2075. The City's proportionate share of the net pension liability was based on the City's 2014-15 fiscal year contributions relative to the total 2014-15 fiscal year contributions of all participating members. At June 30, 2OL5, the City's proportionate share was 0.004760033 percent, which was a decrease of 0.000850 from its proportionate share measured as of \/ June 30, 2014. For the fiscal year ended June 30, 2015, the City recognized pension expense of 5133,835. ln addition, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Deferred Outflows Deferred lnflows of Resources of Resources Differences between expected and S 88,79t 5 10,797 actual experience Change of assumptions 70,154 Net difference between projected and actual 299,752 earnings on Pension Plan investments Changes in proportion and differences between City Pension Plan contributions and proportionate share of contributions City Pension Plan contributions subsequent to the measurement date Total - 170,629 29,66 $ 8l,163 S 181,426 81 11.A.1 Packet Pg. 329 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS \7 The deferred outflows of resources related to pensions totaling 529,066 resulting from City contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liabilityinthefiscal yearendedSeptember30,2OTT. Otheramountsreportedasdeferredoutflowsof resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Ending September 30: 2017 2018 20t9 2020 2021 Thereafter Total Amount Actuariol Assumptions. The total pension liability in the July t,2Ot5, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: lnflation 2.60 Percent Salary lncreases 3.25 percent, a\emge, including inflation lnrestment rate of retum 7.65 percent, net of pensiion plan inrestment expense, including inflation Mortality rates were based on the Generational RP-2000 with Projection Scale BB. The actuarial assumptions used in the July L,20L5, valuation were based on the results of an actuarial experience study for the period July 1, 2009, through June 30,2014. The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. S 38,193 38,193 110,536 75,650 ]-]-,L27 3,572 _S z??,nL_ 82 11.A.1 Packet Pg. 330 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA NOTES TO FINANCIAL STATEMENTS The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: 1As outlined in the Plan's inrestment policy Discount Rate. The discount rate used to measure the total pension liability was7.600/o. The plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equalto the long-term expected rate of return. Sensitivity of the City's Proportionate Shore of the Net Position Liobility to Chonges in the Discount Rote. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.60%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.60%) or 1 percentage point higher (8.60%) than the current rate: Compound Annual Annual Target Arlthmetic (Geometic) Standard Allocationl Return Return lleviationAsset Class Cash lntermediate'Term Bonds High Yield Bonds Broad US Equities Dewloped Foreign Equities Emerging Market Equities Private Equity Hedge Funds / Absolute Retum Real estate (Property) Tota! Assumed inflation - Mean City's proportionate share of the net pension liability 100.00% 1% Decrease (6.60%l s 2,L34,966 1.00% 3.11o/o 18.00% 4.18o/o 3.007o 6.79% 26.5OYo 8.51% 21.20% 8.66% 5.30% 11.58o/o 6.00% 11.80% 7.00% 5.81% 12.00o/o 7.11o/o 3.10o/o 1.65% 4.05% 5.15o/o 6.25% 10.95% 6.95% 18.90% 6.85% 20.40% 7.600/o 31.15o/o 8.11% 30.00% 5.35Yo 10.00% 6.35% 13.00% 2.600/0 2.000/0 Current Discount Rate 1% lncrease 17.60%l (8.60%) 1,159,635 347,800 Pension Plan Fiduciory Net Position. Detailed information about pension plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. HIS Pension Plan Plon Description. The HIS Pension Plan (HlS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 1.L2.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 83 11.A.1 Packet Pg. 331 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAT STATEMENTS Benefits Provided. For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of creditable service completed at the time of retirement multiplied by SS. The payments are at least S30 but not more than 5150 per month, pursuant to Section t12.363, Florida Statutes. To be eligible to receive a HIS benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which can include Medicare. Contributions. The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended June 30, 2015, the contribution rate was \.660/o of payroll pursuant to section 772.363, Florida Statues. The City contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which HIS payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. ln the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The City's contributions to the HIS Plan totaled S11,803 for the fiscal year ended June 30, 2015. Pension Liabilities, Pension Expense, ond Deferred Outflows of Resources ond Deferred lnflows of Resources Related to Pensions. At June 30,2076, the City reported a net pension liability of 5258,370 for its proportionate share of the net pension liability. The current portion of the net pension liability is the City's proportionate share of benefit payments expected to be paid within one year, net of the City's proportionate share of the pension plan's fiduciary net position available to pay that amount. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1,2015. The City's proportionate share of the net pension liability was based on the City's 2014-15 fiscal year contributions relative to the total 2014-15 fiscal year contributions of all participating members. At June 30, 2015, the City's proportionate share was 0.002730819o/o, which was a decrease of 0.000168 from its proportionate share measured as ofJune 30,20L4. For the fiscal year ended June 30, 2015, the City recognized pension expense of 59,763. ln addition, the City reported deferred outflows of resources related to pensions from the following sources: tleferredOutfloun Defenedlnflows of Resourtes of ResourcesDescription Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on HIS Plan investments Changes in proportion and differences between City HIS Plan contributions and proportionate share of contributions City HIS Plan contributions subsequent to the measurement date Total 42,Lt4 136 2,745 S srr 65,915 l______l4,ses 66,527 84 11.A.1 Packet Pg. 332 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS The deferred outflows of resources totaling 52,745 was related to pensions resulting from City contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended September 30,20L7. Other amounts reported as deferred outflows/inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Ending September 30: 20L7 20L8 2019 2020 202L Thereafter Total Amount S (4,347l. (4,347') {{4,3321 (4,325) (3,742l. (3,184) _________ Q4AII Actuoriol Assumptions. The total pension liability in the July t, 2075, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: lnflation 2.60 percent Salary lncreases 3.25 percent, a\erage, including inflation Municipal Bond Rate 3.80 percent Mortality rates were based on the Generational RP-2000 with Projected Scale BB. The actuarial assumptions used in theJuly 1,20L5, valuation were based on the results of an actuarial experience study for the period July 1, 2009, through June 30,2014. Discount Rote. The discount rate used to measure the total pension liability was 2.85%. ln general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond lndex was adopted as the applicable municipal bond index. Sensitivity of the City's Proportionote Shore of the Net Pension Liability to Changes in the Discount Rate. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 2.85%, as wellas what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (1.85%) or 1 percentage point higher (3.85%)than the current rate: Current 1% Decrease Discount Rate 1% lncrease (1.8s%l |.2.8s%l (3.8s%) City's proportionate share of the net pension liability s Ero,zgr 268,370 237,376 85 11.A.1 Packet Pg. 333 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISTAND, FTORIDA NOTES TO FINANCIAT STATEMENTS Pension Plon Fiduciory Net Position. Detailed information about pension plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Comprehensive Annual Financial Report. (f) CiW Emolovee Pension Plan The City is a single employer that contributes to a defined contribution pension plan created in accordance with lnternal Revenue Code 401(a). The City of Marco lsland's 401A Plan is available to all employees not covered under the Firefighters' or Police Officers' Pension Plans or the Firefighters' Florida Retirement System. The City has contracted with ICMA or VALIC for the plan administration. For employees hired by the City as part of its acquisition of the water system from Florida Utility, lnc., the City contributes 5% of annual covered payroll plus a match up to 4o/o of any employee's voluntary contribution. For all other employees, the City contributes 5% of annual covered payroll, and employees do not contribute. Employer contributions forfiscalyears ended September 30,201.6,2015, and 2014 were S334,37t, 5368,4L0, and 5359,578, respectively. Employee contributions for fiscal years ended September 30, 20L6, 2015, and 2014 were 5107,333, 5105,614, and $120,234, respectively. Plan provision and contribution requirements are established and may be amended by the City Manager. 13. During fiscal year 2009, the City implemented GASB No. 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other than Pensions, for certain postemployment health care benefits provided by the City. The requirements of this Statement were implemented prospectively, with the actuarially determined liability at the October 1, 2009, date of transition being amortized over 30 years. As of October L, 2074, the City has an actuarially determined liability of S1,520,759. Accordingly, for financial reporting purposes, this liability for the postemployment health care benefits liability is not reported in the financial statements for the City. The Plan does not prepare separate financial statements. Plan Description: The City administers a single-employer defined benefit healthcare plan that provides medical, dental and vision coverage to retirees as well as their eligible spouses. Benefits are provided through the City's group health insurance plan, which covers both active and retired members. All City employees, with the exception of firefighters and sworn police officers, may retire after reaching the age of 55 with five or more years of service. Firefighters and sworn police officers may retire at age 55 with six years of service or upon accumulating twenty-five years of service with the City, regardless of age. Service-incurred disabled employees retire immediately; while non-service incurred disabled employees retire upon completion of eight years of service. Number of Covered Participants: Actives Retirees Eligible spouses Total 193 9 4 206 86 11.A.1 Packet Pg. 334 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS Fundine Policv: For all retired employees, the employee contributes tOOo/o of the active premium rate and may also purchase spouse coverage at the active premium rate. The City does not contribute any amount. Plan provisions and contribution requirements are established and may be amended by the City Manager. The post-retirement medical and dental benefits are currently funded on a pay-as-you go basis (i.e., the City funds on a cash basis as benefits are paid). No assets have been segregated and restricted to provide postretirement benefits. No trust or agency fund has been established for the plan. Benefits are generally liquidated by the general and enterprise funds. Annual OPEB Cost and Net OPEB Oblisation: The City's annual other post-employment benefit (OPEB) cost (expense) is calculated based on the onnuol required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following tables shows the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation: Utilities filamt4 sly,,lmta AllOther Employees LOI,/2Ot4 slyJ,l2oL6 Valuation Date Applicable for Fiscal Year Ending Annual Requi red Contri bution lnterest on Net OPEB Obligation Adjustment to Annual Required Contribution Annual OPEB Cost/(Expense) Net Contributions Made lncrease/(Decrease) in Net OPEB Obligation Net OPEB Obligation- Beginning of Year Net OPEB Obligation- End of Year 5 u,+tl t9o,3l4 LO,9L4 27,93L (16,380) (41,543l, 58,951 776,662 (18,463) 197,3451 40,488 79,3t7 272,UL 695,796 S _ t,ng_ _ns,Lo3_ 87 11.A.1 Packet Pg. 335 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2016,201-5, and 2014 were as follows: Utilities Employees: Percentage of OPEB Cost Contributed Annual OPEB CostYear Ending el30l2o76 s sl30/2o]-s sl3ol2074 AllOther Employees: Year Ending sl3ol2o76 s sl3olzols el3ol2014 roll/2ols 0 LOlLl2Ot4 0 tolrl2ol3 o AllOther Employees: N/A N/A N/A s zsg,tq4 259,74 o.wo N/A N/A N/A 58,951 56,183 78,8!g Annual OPEB Cost 3L.3% 32.60/o ffi.1% Percentage of OPEB Cost Contributed Net OPEB Obligation 313,329 272,U7 234,986 Net OPEB Obligation 775,1O3 695,786 519,555 Covered Payroll (c) N/A 3,613,640 N/A covered Payroll (c) N/A 7,247,329 N/A t76,662 t72,460 247,7N 55.L% 55.8% 49.5o/o Funded Status and Fundine Progress: The schedule below shows the balance of the actuarial accrued liability (AAL), part of which was unfunded as of September 30, 2016: Utilities Employees: Accrued Actuarlal Value Uabillty (AAL) Unfunded AAt Actuarlal ofAssets UnitCredit IUAAL) Funded Ratio Valuation Date (al (b) (b-al (a&) Actuarial Valuation Date 70/tlzots LO/tl2Ot4 to/tl2013 Actuarial Value of Assets (a) 0 0 0 Accrued Uability (AAt) Unlt Credit (b) N/A S 1,261,01s N/A Unfunded AAL (UAAL) (b-a) N/A L,267,0L5 N/A Funded Ratio (a/b) N/A o.@6 N/A UAAL as % of Covercd Payroll ((b-a)/cl UAAL as % of Covered Payrcll ((b-al/c) N/A L7.4% N/A N/A 7.2% N/A 88 11.A.1 Packet Pg. 336 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISLAND, FLORIDA NOTES TO FINANCIAL STATEMENTS Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status of the plan and the annual required contributions by the City are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The actuarial cost method used in the valuation to determine the Actuarial Accrued Liability (ML) and the Actuarial Required Contribution (ARC) is the entry age normal (level percentage of pay). The actuarial assumptions included: Gl a% funding interest rate; (b) pre-Medicaid and post-Medicaid healthcare inflation of 8.Oo/o; (decreasing .75% each year to fiscal 2019, then decreasing 0.5% to the ultimate rate of 4.5% in fiscal 2020); (c) payroll growth/inflation of O%; and (d) salary inflation of 6% per year. The actuarial accrued liability is being amortized as a level percentage of payrolls over thirty years (closed amortization basis). Actuarial Methods and Assumptions: Projections of benefits are based on the substantive plan (the Plan as understood by the employer and plan members) and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the City and the plan members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. 14. Sgbsssssll-EslE Subsequent to September 30, 2015, the City has had changes with regards to its long term debt. On December 7,20L5, the City closed on Utility Revenue Bonds, Series 2015 in the amount of 538,520,000 to advance refund the 2010A Bonds. ln addition, the City legally defeased, or fully paid off, the 20108 Bonds. The favorable market conditions resulted in a sizeable reduction in future debt service payments for the Utility System. 89 11.A.1 Packet Pg. 337 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA This page intentionally left blank. 90 11.A.1 Packet Pg. 338 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) clw oF MARco tsLAND, FLORTDA REQUIRED SUPPLEMENTARY INFORMATION 91 11.A.1 Packet Pg. 339 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA This page intentionally left blank. 92 11.A.1 Packet Pg. 340 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISLAND, FTORIDA SCHEDULE OF CHANGES IN THE CITYS FIREFIGHTERS'PLAN NET PENSION LIABILITY AND RELATED RATIOS 2016 2015 2014 Total pension !iability Senice cost lnterest on total pension liability Changes of beneft terms Difurences between expected and actual experience Changes of assumptions Benefit payments, including refunds of employee contributions Other (increase in share plan balance) Net change in total pension liability Total pendon liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - state Contributions - employee Net inlestment income Benefit payments, including refunds of employee contributions Administratiw expenses Other Net change in plan fiduciary net position Plan fiduciary net posation - beginning Plan fiduciary net position - ending (b) Net pension liability - ending (a) - (b) Plan fiduciary net podtion as a percentage of the total pension liability Covered+mployee payroll County's net pension liability as a porcentage of covered - omployee payroll Notes to the Schedule The schedule will present 10 years of infcrmation once it is accumulated. $ 16,215,884 $ 13,998,568 $ 11,956,880 2,217,316 13,998,568 1,973,640 12,024,928 1 ,801,754 10,155,126 897,579 $ 1,M1,740 tza,iazt 306,279 824,223 $ 898,1 85 (72,811) (35,884) 359,927 71 5,385 775,313 (99,7s9) tzs,ssol 434,351 1,140,053 389,408 22,407 702,748 (8e,3e8) (42,7_s5) 1 ,716,158 433,863 20,798 (181,460) (35,884) (41,545) 714,633 507,798 17,499 614,ils (23,556) (34,5s2) 2122,423 12,990,030 1,911,930 1,796,367 11,078,100 9,281,733 $ 15,112,453 $ 12,990,030 $ 11,078,100 1,103,431 $ 1,008,538 $878,780 93.20% $ 2,240,686 $ 49.25% 92.800/0 92.650/0 2,079,800 $ 1,749,863 48.49%50.22% 93 11.A.1 Packet Pg. 341 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO !S[AND, FTORIDA SCHEDULE OF CITY FIREFIGHTERS'PENSION PLAN CONTRIBUTIONS 2016 2015 2014 Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution defi ciency (excess) Coleredemployee payroll Contributions as a percentage of Colered+mployee payroll $ 1,062,757 $ 995,600 $ 796,188 1,223,182 1,782,475 796,188 $ (160,425) $ (786,875) $ 2,240,686 2,079,800 1,749,863 54.59% 85.700/o 45.50% Notes to the Schedule Valuation Date October 1,2013 October 1,2013 Cost Method Entry Age Normal Entry Age Normal Actuarial Asset Valuation Method Market Value Market Value Assumed Rate of Retum \/ On lnlestments 7.00o/o 7.000/o Projected Salary lncreases 7 .5% lo '13.0% basr 7.5% to '13.07o based on senice Costof-lir,ing Adjustment 3.00% 3.00% Amortization Method Lewl dollar, closed Lewl dollar, closed Remaining Amortization Period 30 years 30 years Nobs to the Schedule The schedule will present 10 years of inbrmation once it is accumulated. 94 11.A.1 Packet Pg. 342 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA SCHEDULE OF FIREFIGHTERS' PENSION PLAN INVESTMENT RETURNS 2016 2015 2014 Annual money-weighted rate of retum, net of inuestment expenses for the City's Pension Plan 5.250/o -0.99% 8.56% Note to the Schedule The schedule will present 10 years of information once it is accumulated. 95 11.A.1 Packet Pg. 343 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctTY oF MARCO ISLAND, FLORTDA SCHEDULE OF CHANGES IN THE CITYS POLICE PLAN NET PENSION LIABILITY AND RELATED RATIOS Total pension liablllty Seruice cost lnterest on total pension liability Changes of benefl terms Difierences between expected and actual experience Changes of assumptions Beneft payments, including refunds of employee contributions Other (increase in share plan balance) Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net podtion Contributions - employer Contributions - state Contributions - employee Net inrestment income Benefit payments, including refunds of employee contributions Administratiw expenses Other Net change in plan fiduciary net podtion Plan fiduciary net podtion - beginning Plan ilduciary net podton - ending (b) Net pendon llability - endlng (a) - (b) Plan fiduciary net podtion as a percentage of the total pension liability Covered+mployee payroll Countlr's net pendon liablllty as a percentage of covered . employee payroll Notes to the Schedule The schedule will present 10 years of information once it is accumulated. $ 12,874,095 $ 11,476,333 $ 9,530,334 2016 2015 20'14 605,528 $ 8,/,6,524 (405,142) 572,589 (221,7 _37) 621,176 7il,375 749,167 (186,343) 7,624 570,609 671,200 rreo,4r rl 1,397,762 1,945,999 11,476,333 9,530,334 1,061,398 8,468,936 2,155,279 194,972 11,090 595,780 (224,916) (41,635) 1,499,693 161,276 10,596 (73,973) (1 88,605) (56,277\ 687,863 145,004 26,il4 542,433 (181,s90) (35,433) 2,690,570 8,712,027 1,352,710 7,359,317 1,1U,421 6,174,896 $ 11,402,597 $ 8,712,027 $ 1,471,498 $ 2,764,306 _t__?,35r,31r_ $ 2,171,0',t7 88.57% 2,128,618 $ 69.13% 75.91Yo 2,049,015 1Y.91o/o 77.22% $ 2,093,651 103.70% 96 11.A.1 Packet Pg. 344 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA SCHEDULE OF CITY POLICE PENSION PLAN CONTRIBUTIONS 2016 2015 2014 Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution defi ciency (excess) Corered-employee payroll Contributions as a percentage of Covered-employee payrol I $ 836,760 $ A21,375 $ 817.571 2,324,669 1,769,072 A17,571 $ (1,487,e0e) $ (e47,6e71 $ - 2,128,618 2,O49,O15 2,093,6s1 109.210/" 86.34.0/o 39.05% Notes to the Schedule Valuation Date October 7,2Ot4 Cost Method Actuarial Asset Valuation Method Assumed Rate of Retum On lnvestments 7.5Oo/o Projected Salary lncreases 6.07o per year until the assumed retirement age. v Projected salary at retirement is increased 207o to account for non-regular compensation. Cost-of-liMng Adjustment 3.00% Amortization Method Remaining Amortization Period 31 years Note to the Schedule The schedule will present 1O years of information once it is accumulated. 97 11.A.1 Packet Pg. 345 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA SCHEDULE OF POLICE PENSION PLAN INVESTMENT RETURNS 2016 2015 2014 Annual money-weighted rate of retum, net of inrestment expenses for the City's Pension Plan 6.56% -0.99% 8.56% Note to the Schedule The schedule will present 10 years of information once it is accumulated. 98 11.A.1 Packet Pg. 346 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA Schedule of the City's Proportionate Share of the Net Pension tiability - Florida Retirement System Pension Plan 2016 (1) 2015 (1) 2014111 2013 (1) City's proportion of the FRS net pension liability 0.004592598% 0.004760033% 0.005609629% 0.006277953% City's proportionate share of the FRS net pension liability $ 1,159,635 $ 614,822 $ Y2,270 $ 1,080,715 City's coreredcmployee payroll $ 778,709 $ 779,069 $ 81 1,048 $ 935,847 City's proportionate share of the FRS net pension liability as a percentage of its coreredcmployee payroll 148.92Y0 78.92o/o 42.20o/o 115.48o/o FRS Plan fiduciary net position as a percentage of the total pension liability 92.00o/o 92.00oh 96.09% 88.il% This schedule is presented to illustrate the requirement to show information br 10 years. Howerer, until a full 10-year trend is compiled, information for those years for which information is auilable should be presented. Note 1: The amounts presented for each fiscal year were determined as of June 30. Schedule of City Contributions - Florida Retirement System Pension Plan Contrractually required FRS contribution FRS contdbutions in relation to the contractually required contnbution FRS contribution defi ciency (excess) City's corcred+mployee payroll FRS contributions as a percentage of coleredemployee payroll 2016 (1) 201s (1) 2014 (1)$ rrr,gga $ 116,054 $ rzz,azs (111,ee8) (116,054) (122,8751 $ 778,709 $ 779,069 $ 811,048 14.38Y0 14.fiY0 lhis schedule is presented to illustrate the requirement to show information for 10 years. Howeler, until a full 10-year trend is compiled, information for those years for which information is alailable should be presented. Note 1: The amounts presented for each fiscal year were determined as of June 30. $$ 15.150/0 99 11.A.1 Packet Pg. 347 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctw oF MARco rsl-AND, FLoR|DA Schedule of City Proportionate Share of the Net Pension tiability - Health lnsurance Subsidy Pension Plan 2016 (1) 2015 (1) 2011 (1) 2013 (tl Oty's proportion of the HIS net pensionliability 0.002302719% 0.002730819% 0.002898891% 0.003299738% Oty's pmprtionate share of the HE netpensionliability$278,501$278,501$271,053$287,2ffi City's corered+mployee paymll $ fl8,709 $ 79,069 $ ett,Om $ 935,847 City's proportimate share of the HIS net pension liabilily as a percentage of its corcred+mployee payroll 35.76% 35.75% 33.42010 30.70% HIS Plan fiduciary nel psition as a percentap ofthe total pension liability 0.50% 0.50% 0.99% 1.780k lhis schedule is presented to illustrate the requirement to stnw infumation br 10 years. Howewr, until a full 10-year trend is compiled, inbrmation br those years br which inbrmation is available should be presented. Note 1: The amounts presented for each fiscal year were determined as of June 30. Schedule of City Contributions - Health lnsurance Subsidy Pension Plan 2016(1) 2015(1) 2014 f 11f03 T 9"931\/ Contnactually required HIS contdbution HIS contributions in relation to the contnactually required HIS contribution HIS contribution def ciency (excess) City's colered+mployee payroll HIS contributions as a percentage of covered+mployee payroll (11,803) (10,43e) (e,e31) l__23,606_ _$__20,8?q_ _$___1 e,862_ $ 778,709 $ ZZS,06S $ err,O+A 1.52o/o 1.34Y0 1.22Y0 Ihis schedule is presented to illustnate the requirement to show information for 10 years. Howewr, until a full 1O-year trend is compiled, inbrmation br those years for which information is awilable should be presented. Note 1: The amounts presented for each fiscal year were determined as of June 30. 100 11.A.1 Packet Pg. 348 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Schedule of Funding Progress Utilities Employees: CITY OF MARCO ISLAND, FTORIDA OTHER POST EMPLOYMENT BENEFITS 259,744 O.Wo N/A N/A Unfunded M[ Valuation Date (a) (b) (b-a) (a/b) ( c) ((b-a)/c) rollzols 0 N/A N/A N/A N/A N/A ActuarialValue Accrued Unfunded AAL Actuarial of Assets Liabili{(ML) (UAAU toltl2ot4 o 5 259,7M toltlzot3 o N/A All Other Employees: UMLas%of Covered Covered Funded Ratio Payroll Payroll N/A 77.4% N/A 3,613,640 7.2% N/A N/A UMLas%of Covered CoveredActuarialValue Accrued Actuarial of Assets tiability (AAt)(UAAU FundedRatio Payroll Payroll Valuation Date {a) (b) (b-a) (a/b) ((b-a)/c) 10ltl20ts 0 N/A N/A N/A N/A t0ltl20L4 0 5 1,261,015 1,261,015 o.tr/o 3,513,640 toltl2oL3 N/AN/AN/AN/A 101 11.A.1 Packet Pg. 349 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual General Fund Year Ended September 3Q 2016 Revenues Taxes Permits, fees, and assessments lntergovernmental Charges for services Fines and forfeitures I nterest Miscellaneous Total revenues Expenditures Current General government Legislative Executive Fi nance Legal lnformation technology Growth management Other general government Total general government Public safety Police Fire and rescue Code compliance Total publicsafety Transportation Culture and recreation Capital outlay Total expenditures Excess of revenues over expenditures Other financing sources (uses) Use of Reserves Transfers out 23,907,625 24,y3,455 26,L45,940 L,fi2,485 Origina! Budget s re,zar,zso 26sm 3,302,020 L,452,325 123,000 $2,m0 30,000 Final Budget t9,w,o72 26,500 3,589,580 t,4s2,32s L72,W 192,000 4,178 19,322,086 465,304 3,815,513 t,9s6,tls 156,650 722,556 3026s6 Variance with Final Budget 256,014 438,804 225,933 503,850 (15,1s0) l6s,Ml 263,478 720,525 7L5,945 895,225 300 000 556,420 543,445 1,124,595 4,256,155 4,702,495 5,819,325 303,420 to,824,UO 2,78f.,225 889,70s 120,52s 7L5,945 8€.5,225 3m,000 556,420 v3,45 L,t25,@5 4,2s6,6s5 6,24/.,614 6,499,427 303,240 L3,U7,28r 2,912,N3 889,70s 104,438 705,945 839,450 369,t29 453,185 367,093 915,946 3,755,196 16,087 10,000 55,765 (69,129) 103,235 776,352 2W,749 501,459 173,U4 148,532 59,295 32L,67L 445,819 52,521 6,730,n0 6,350,895 243,945 72,725,6L0 2,366,5U 837,!U 18,758,925 21,ffi,U4 5,1 ,7@ 3,537,4t1 L9,W,574 t,32L,470 6,461,366 2,923,95s Fund balance, beginning of year Fund balance, end ofyear Total other financing sources (uses) Change in fund balance (s,14S,880) (5,1't8,880) (1,088) 8,338,722 8,338,722 5 _8,338,722_ _8,337,6v_ 1,935,133 1s,473,6321 (s,473,6r1l. (3,s38,4ee) 1s,473,6L71 (r,93s,133) 2t (1,935,112) 987,755 988,843 8,338,722 9,326,477 988,843 LOz 11.A.1 Packet Pg. 350 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISI.AND, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION NOTE 1 BUDGETS AND BUDGETARY ACCOUNTING Annual budgets are adopted for the general fund on a basis consistent with accounting principles generally accepted in the United States. 7. Prior to September 1, the City Manager submits to the City Council a budget estimate of the revenues and expenditures for all City departments and divisions for the fiscal year commencing the following October 1. 2. Upon receipt of the annual budget estimates, the City Council holds various budget workshops to review and amend the proposed budget. 3. Public hearings are held to obtain taxpayers' comments. 4. Prior to October 1, the budget is legally enacted through passage of an ordinance. 5. No department may legally expend or contract to expend amounts in excess of amounts appropriated for any department within an individual fund. Budget appropriations lapse at year end; however, the Finance Director, through the City Manager, is authorized to reserve at the beginning of the year the unpaid purchase orders, outstanding contracts, and other commitments from the prior year. 6. The adopted budget may be amended as follows: a. The City Council has authorized the City Manager to amend, modify, or othenrise adjust the operating budget to a maximum limit of 550,000. The legal level of budgetary control is at the fund level for the general fund. The City Council approves all other budget amendments. b. The City Council approves supplemental appropriations via re-appropriation ordinance which consolidates all budget amendments approved during the course of the fiscal year and those recommended by the City Manager near the end of the fiscal year. There was an increase of 5634,742 in appropriations in the general fund during the year end September 30, 2015. 7. Encumbrance accounting is used in governmental funds. Encumbered purchase orders outstanding lapse at year-end. NOTE 2 EXCESS EXPENDITURES OVER APPROPRIATION Historically, the City develops a conservative budget based upon 96% of ad valorem taxes, and between 90o/o and 95% of the State's various state-shared revenue projections due to the uncertainty in the economy. Actual revenue received and use of reserves was S.3 million less than budgeted. This was primarily due to a conservative budget approach on ad-valorem revenue. Permit and impact fees exceeded budget by S0.5 million. ln the long term we expect a downward trend in CST revenue due to the shift in telecommunications from land lines to wireless devices. Overall, departmental expenditures were in line with budgeted expenditures. 103 11.A.1 Packet Pg. 351 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA This page intentionally left blank. 104 11.A.1 Packet Pg. 352 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) clw oF MARco lsLAND, FLORIDA COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS 105 11.A.1 Packet Pg. 353 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA This page intentionally left blank. 106 11.A.1 Packet Pg. 354 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Grants Fund accounts for the revenues received from other governmental and private organizations to be used for specific purposes. Building Services Fund accounts for revenue received from building permits and application fees to be used for the operation of the building department. to7 11.A.1 Packet Pg. 355 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FLORIDA This page intentionally left blank. 108 11.A.1 Packet Pg. 356 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA Combi ning Balance Sheet Nonmajor Governmental Funds September 30, 2015 Special Revenue Grants Building Services Fund Fund Assets Accou nts receivable, net Restricted cash and cash equivalents Total assets Liabilities Accounts payable Accrued liabilities Total liabilities Fund balances Restricted Total fund balances Total liabilities and fund balances s 3,314 5,758 5 ________2,072_ S 9,O72 9,O72 5 _9,u2_ 3,624,95g _3,624,958_ 79,120 35,557 3,3t4 3,630,7L6 3,634,030 18,L20 36,557 54,677 54,677 3,570,281 3,579,353 3,570,28L 3,579,353 3,624,958 _1,634,030 109 11.A.1 Packet Pg. 357 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISISND, FTORIDA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended September 30, 2016 Special Revenue Grants Fund Building Services Total Revenues Permits, fees and assessments lntergovernmental lnterest Miscellaneous Total revenues Expenditures Current Physical environment Fire and rescue services Building services Total expenditures Excess (deficiency) of revenues over (under) expenditures Other f inanci ng sources Transfers out Total other financing sources Change in fund balances Fund balances, beginning ofyear Fund balances, end ofyear 11,006 2,333,039 2,344,U5 11,006 2,31&906 14133 2,318,906 11,006 L4,L33_ 11,000 19,158 11,000 19,158 (12,500) 8r'.3,253 2,736,L00 3,579,353 L,458,124 t,458,724 30,168 L,458,L24 L,488,292 (19,162) 874,91s 855,753 (12,500) (12,500) ( 12,500) (19,162) 862,415 28,234 2,707,866 5 __9,w2_ _3,s7o,281_ 110 11.A.1 Packet Pg. 358 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual DebtService Fund Year Ended September 30, 2016 Revenues Taxes lnterest Revenue Miscellaneous Total revenues Expenditures Debt service Principal lnterest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Othe r f inancing sources Use of reserves Transfers in Debt proceeds Total other financi ng sources Change in fund balance Fund balance, beginni ng of year Fund balance, end ofyear 792,430 4,342,035 323,2n 4,665,235 (3,872,805) 603,lE5 t,332,490 1,936,930 L,334,490 3,972,n5 Original Final budget Budget Actual Variance with Final Budget 791,955 (475) t2,722 L2,722 24 24 192,430 792,430 792,430 1,913,960 313,060 2,126,920 (1,334,490) 2,W 1,332,490 2,088,332 S z,os8,ssz 804,701 4353,819 327,51L 4,691.,430 (3,886,7291 1,332,49 1,990,000 (27,78r'.l. (4,4tt') (25,195) |.t3,9241 (603,rt85) (221 43,170 2,099,332 ___2,0883n_ 3,372,48 (560,337) 1574,26tl, 1574,26t1 2,088,332 _1,514,011_ _(5?4,26\ L7L 11.A.1 Packet Pg. 359 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FTORIDA Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual Capital Projects Fund Year Ended September 3Q 2015 Original Final Budget Budget Actual Revenues lntergove rnme ntal lnterest Miscellaneous Total revenues Expenditu res Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 0ther financing sources (uses) Transfers in Transfers out Debt proceeds Use of reserves Total other f inanci ng sources (uses) Change in fund balance Fund balances, beginning as previously stated Restatement of fund balances; See note 1.(f) Fund balance, beginning as restated Fund balance, end of year 11,503,509 11,503,609 s _11,503,609_ _9,409,Iq_ ,*T 100,000 4,7L4,215 4,7L4,2L5 |t4,5L4,2751 4,614,275 (760,730) 7@,730 4,674,215 1.1,503,609 879,927- 47,7n 92L,707 14693,505 14,693,505 (L3,77t,7981 8,051,357 3,876,2701 14L,ffi 7,3ffi,829 11,671,375 .2,W,4231 11,503,609 L,723,949 105,795 4t,678 t,27L,42L 5,9@,257 5,964,257 (4692,836) g,o54,5Ol (3,875,268) 181,911 4,3fi,t47 (332,689) 11,503,509 Variance with Final Budget 244,021 105,795 (102) 349,7t4 9,729,28 9,729,24 9,079,962 3,147 2 40,451 (7,360,828) (7,3t7,2291 1,767,7U 11,503,609 _n,D0,gn_1,761,7U tL2 11.A.1 Packet Pg. 360 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctTY oF MARCO ISLAND, FLORTDA Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual Grants Fund Year Ended September 30, 2016 Original Budget Final Budtet 53,052 Variance with Final Budget (42,C/,61 Actual Revenues lntergovernmental lnterest Miscellaneous Total revenues Expenditures Current Physical environment Fire and rescue services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financi ng sources (uses) Use of reserves Total other financing sources (uses) Changes In fund balance Fund balance, beginning of year Fund balance, end of year 11,006 53,052 t6,n0 63,t47 11,006 11,000 19,168 (42,c46l, 5,770 43,979- 79,9t7 30,168 (25,865) (19,762)7,703 29,234 $ za,B4 26,855 26,965 28,234 29,2U ____28,234_ _2NL (25,865) (19,162)(19,162) ___1]11q4 113 s 11.A.1 Packet Pg. 361 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FTORIDA Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual Building Services Fund Year Ended September 30 2015 Original Budget S 1,322,500 10,0m 1,332,500 Final Budget 1,'155,500 10,000 2,31&906 14133 Variance with Final Budget 8s3,406 4133 Actual Revenues Permits, fees and assessments I nterest Total revenues Expenditures Current Building services 0perating expenses Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Use of reserves Transfers out Total other f i nancing sources (uses) Changes in fund balance Fund balance, beginning of year Fund balance, end of year 7,475,5W 2,333,039 1,320,000 1,463,000 7,458,L24 1,320,000 1,48,m0 \458,L24 4,876 12,5m U,500 874,9L5 (12,s00) (12,s00) (1as00) (u,sm) (u,s00) (12,s00) - 862,47s 2,707,866 2,707,866 2,707,866 5 _2JW,8ffi_ _2,707,866_ _3,570,281_ 862,415 862,415 Lt4 11.A.1 Packet Pg. 362 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctTY oF MARCO ISLAND, FIORIDA FIDUCIARY FUNDS Fiduciary funds are used to account for the activities of funds held in a trustee or agency capacity for others that cannot be used to support the City's own programs. The City reports pension trust funds which are to account for the activities of the City's retirement systems, which accumulate resources for pension benefit payments made to employees. Firefighters' Pension Fund accounts for the activities of the City's defined benefit retirement plan for all full-time sworn fire personnel. Police Offers' pension Fund accounts for the activities of the City's defined benefit retirement plan for all full-time sworn police personnel. 115 11.A.1 Packet Pg. 363 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISIAND, FIORIDA This page intentionally left blank. 116 11.A.1 Packet Pg. 364 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA CITY OF MARCO ISIAND, FLORIDA Combining Statement of Fiduciary Net Position Fiduciary Funds September 30, 2016 Pension Trust Fire Pension Police Pension Total Assets Cash and cash equivalents Contri butions rece ivable lnvestments, at fair value Government bonds Corporate bonds Common stock Accrued interest Total investments Total assets Lia bilities Accounts payable Totalliabilities Net position Held in trust for pension benefits 689,226 389,408 2,169,L74 2,808,033 9,053,207 4,Ns 14033,819 L5,tL2,453 u3,552 1,650,602 2,107,695 6,997,4L6 3,y2 L,332,778 389,1108 3,878,776 4,9L5,7L8 16,050,623 7,747 L0,759,U5 LL,402,597 24,792,8@ 25,515,050 5 _15,112,45i_ _11,4o2,s97 26,515,050 L17 11.A.1 Packet Pg. 365 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA CITY OF MARCO ISIAND, FLORIDA Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds Year Ended September 30, 2016 Pension Trust Pension Pension Total Additions Contributions Employer Employee State of Florida Total contributions lnvestment earnings lnterest and dividend income Net change in fair value of investments Less i nvestment exPense Net i nvestment earni ngs Totaladditions \-/ Deductions Benefits paid General admi nistration Total deductions Changes in net position Net position, beginning of Year Net position, end of year s 1,1/m,053 22,N7 389,2m8 1,551,868 237,091 585,196 (113,539) 702,748 2,2y,6L6 gg,3gg 42,795 132,793 2,L22,423 12,990 030 S ___15,112,453_ 2,755,279 11,090 794,972 2,36t,341 L67,U9 505,891 (77,7@l 595,780 2,957,L2L 224,916 41,635 266,551 2,69(),570 8,7t2,027 _LL,N2,59?_ 3,295,332 33,497 584,380 3,913,209 398,740 L,09L,087 (191,299) L,2gg,52g 5,zLL,737 3t4,3L4 u,430 398,744 4,8L2,993 2L,702,O57 -26,515,059_ 118 11.A.1 Packet Pg. 366 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA STAT!STICAL SECTION This part of the City of Marco lsland's Statistical comprehensive annual financial report presents detailed as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Page FinancialTrends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. L2l-125 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property taxes. 126-L29 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the city's abilityto issue additional debt in the future. 130-133 Demographic and Economic lnformation These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. 134 and 135 Operating lnformation These schedules contain information about the City's operations and resource to help the reader understand how the City's financial information relates to the services the City and the activities it performs. 135-138 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The city implemented Statement 34 in 2OO4; schedules presenting government-wide information begin in that year. 119 11.A.1 Packet Pg. 367 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctTY oF MARCO tSlAND, FLORTDA This page intentionally left blank. 120 11.A.1 Packet Pg. 368 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) sdcd{h I GovcmntC activiti.i Nct inYarhrnt in epitrl eE R!ttrid.d t,nrcnrld.d 8usirc$.typ! adiviths t{ct invcltmnt in opitrleB Rlstrici.d Uncstrid.d Pimay ammcnt Nct irwSiant ih epitC ett R.5trict!d thrcstided Total primary 8wmm.nt mt po5itiq (1) IheCitybegantoreport.@.linform.tionwhenitimdementedGASSStrtcment34infiulyer2(Da. CITY OF MARCO ISIAND, FLORIDA il.t P6itim by C.nTomm lun ndltldl [.st Tcn Flscal Ycars trt (Accru.l 8si3 o, Accountlnd I0I t05 IOa U3 202 20,l t0! r@ 20 fr, s 6lBtrm I,mA 55,e9,235 6a,S5r,A2 6q82,t79 e,r43r 6r,il,r1 56r!9,967 U,8s..1,ffi t3,@4rBqou39 13,fi,1fi 19,209.9 1,5a2ie $0+3O l2rr,EE 11610 ra4 5,t58719 145i8,16 r7,515,O1 4€t56 9,0.',r5t l5,623,ru D,tn,fl qI2,015 A,5l3,95 B,6gt,* 8,60,011 1550U rr,238,911 84,109,18 8+@9{2 U,733,SE t5,{14,5la 6721A1 q923,As B,a8q{50 &,301,a55 Tt123m qa1zf, g,lD,tu 1ila,5' 2l,51q$ 26SA,ag9 U,t,|..757 t61rq[1 5t32,5e ]s,60,521 995qffit2,0o,2l tq752,56 Lgn,M 56333,t9a ?2,l$,gt 6j,,5,@2 13,U,ry2 8,m,11 1,19,18 trrqTt 5,442,535 +131,.9{ 1q39},147 21Oj,513 5t8143L {3,595,i1D 53,a53,O1 15,5r.9rt (1751960) 96,66,60 14663,264 104,99qS 16,372.4n 0r,5l5u $'7l',2A t1G7,6ra 66,71t 0U €,A!5U 22,G1,58 69i25,65 e,rsts 7\42l;fr, 6,1,/,u1 93,66,371 9,t8,t27 ti!19,0a2 l0t$4547 l[O,Bql,' Aggttsa s,5&769 tq.ut,m 9!$'r,.15 m,alq2?a 23,Eo,o 2q2t4gl7 ' r7,llltp rq1$,688 L,3:li,,m b,tn7.rn 2+CqB6 15,563,110 2S,1I,S 32245,325 TS,g,rOa 51937,{5 g,On,$1 3t 6,26'' 1+rrqtL 3,783,62 5 tE3, ,91 t,6,37l1a1 lrg,G,m l*,fi,(l Unrr5'm 1,{{9,a99 tf,.n?,Ut 1{B,235.1n 1A.625.9t 97.18_958 t2l 11.A.1 Packet Pg. 369 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) $hdul. 2 @.mm.nt.l dlvltl€t G.n.r.l aovcmm.nt CultuE.nd Eceation lnt.rctt m long-temd.bt Tor.l @vcmm.nt.l alvltl...rp.n3.s Bu3lnelr Sedrvltles Tobl pdmary lov.mm.nt.4.ne5 d.mm.ht l dlvld.s tuC.3lor !Mes Gd!rala@cmm€.t CdccoilOll.ne tulldln!*ry|@s CultuE.d E@.t16 ch.[cr lor 3.ryre3 - o$.rdiviti.t Op...tloA ar.nts.nd ontdbutio.5 Qplt.l gr.nB .nd 6ntd butlohr C]TY OF MARCO ISIAND, FLORIDA Ch..fc. ln Id P6hlil (l,rrxdlt.dl l5t Tan Fls.C YaaE lAc@CBakof A@tttl.d -__4:_&@,utu&a____p_ s 44as a@,6r6 1s,* \7o,@ {6tr9ro 3,s6L7 .B,a1O t6,arl tr$,S 3,8,8 +w1$ +s,s 4r1r,919 q897 a64S +U,M 1$tG 190,S 1s,E 3,5D,S1 06666 6@,E O219,116 t@462 t28S 5.117,i2 d6,5S +rD,B trS,{5 3,63,7463,@ &,9 5t& &s c749 8A \74,97 2q8A 19,316 1D,3t La1L41 tr9,& LAIS LAru B$1 8Em &1@ %,9 L2t6s 1,9,m \9,a, EEB Es,e &s,@7 L4m t&s2 6Qr4 ,7@,M 3,68 a,oG,S96,9 g,or, 47,Da w@ azg LB\7a2 tro$,a L6,a 2.2&111 L92Zg3a.! ______s!!!q_ &p .a.G ____!gl!!_ ______gp_ ______!glE_ s7.rs 7a.B 3357,@ __jEgqrE_ 86,@ 2+*,4 !,6,a2 4@,e ___2!pp_ ___l3l.!!9l:E_ ____!C3g!S! B,t17,u 3ZA,G 3zN,8' 565 6@q 3ttuS a,r6 4At6 A,B,S7 2L5AS q5ES1 u$ _____94_ _____l!935_ a,s -_____g!!9!_ __-_grE_ r8s 247,ep r€s r.61& ___.4.111!!2_ __3,W_ ___5!1q qs,e -__lS:!ge_ ___.p?gg_ r.3q80 21.&.$ 8.n.8 -_-g!!l99_ s,B,& 52,s'87 q@.92 5@,s qqX6e $,s,& 4,S32s ___l!99q4l .7,a7\&. 9,9 s,ua,@1 a,a2A1D 264 6s gtu "*T rBBl tr1GB LAq@ trrr,6 !a4e LG@. L2S,@ trOS,S2 1,S,7A H;;l z?;#1!E@ ____!.ESEE_ _____EE_ _____-glg!_ esu' r8s 1qs 161e8 ____3@,!E_ 2,1a,* t2a1s \fr,n \D1.fr1*D7 92,& 4,va1l4s &r &s@,@ gu ,fi,79 13[S 1t7lrc I'SE,E &@ 4@D1143 BE @.* 9nB 89* t4,117 g,g5 u,w $1,€7 58,210 165,@ tt926 Utr6 ,L4 57,47 $,A 82qA S,@ \&na 'L@1S roEr aov.mm.nt.l diviti.sDrqan!tulet ,,&Bt 7,8,0n td,s 5q3D +&d 1S@l a6,@ ____L!9!99_ 3,@,46 4,2s,43 to3i^e.r-Vp. .dvltr€t chaqls for 3.ryies, wil.r ..d !.w.r Ch.€.i fo. r.ryic€r, dh.Trdlvltl.s op.retlna a..^ts a.d.o.tdbdlons Gpll.l Ar.nB and otdbutlds N.tl.rtsnns) cvenue5 GoEmm€.ol .dvlde5 gu.lm$-VF dlviti.5 Tobl pdm.ryp€mhent net erEnr. r16q@ 3!565,6.rt *1 4,5r,!7 zr,@,tu arGtT LOGZ! 6,Ar,% 245S,9' 2Zt1r,@7 r,S,3Z*LBt- ,o: o: .^,T lrr,sn ,1 i1x ,*:r Iobr bBin.se-ryF.divties p.osr.m r.v.nu.3 -_:192!_ 3Ls,G2 3tro,& $,s451 *,abB7 4,9L5D 4,!u,s1 D,67,s .7,6s,@6 27,82,o1a ___gg!.l:z_ qEs 1qr17! E&la 14s,76 ___l1SEl!:_ 5,%,.u (E,Ut6) (ra48,.1,) (4s1@) (A,e6) (A,@,6) (U,@3,@ (n,1g,E) (17,S,525) (ls,@,e) (!,ry,211) lt8q3$) (q@1@) a6,r& qat6 rc,592,@ Gs,ou Buq$s 25,2u.at 8,@,& s-lEryL J31g:L J4.ryr J19,g,-)- Jt11!L9EI JjglL _l1S1]=!. Jllgt ---9ry_ J:,ryt t22 11.A.1 Packet Pg. 370 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Sch.dulc 2 (Contlnu.dl ene6l Gvenuesand oth€rdengesin net Fsition &vemmntal adivities Communi6tionseryae h Ghertiles Sldeshacd Ev€nues Gin on sleof epibl asseE Total govemfr ent.l dlvities fo slness-type adlvitl€s lnt€rest Msellaneo6 evenues (erf nses) &in onsale of 6piblass€B Total business-tyE divti.s Total pdm6rySovehment ChanSes in Et posltlon Govemmental divities Business-tyE adivities Tobl pdmarypvemment cnY oF MARCO tSlAND, FLORTDA Changes in Net Psitim{ontinued (Umudlted) [ast Tcn Flscal YcaR (Accrual Basls of AcountlrB, ruruwm20ro&a, s 17,8,ffi 5 lq$LW s E,1D,S 14S,363 E S,U [,AagD E M,2% 14,W,1n M3D,937 1136,Ws1,174 g,@ 84S r"ffi,47 918 Itg6 1,mlB 9y,AE S,@ 974,78!.s3,82- 1,$1"ffi t,4e,T L2n,gr- Lu.*L "-,1 1,211,8 ,:il;# ,,ffi:# ,fl!:li2"ffi,U 2,W,M 2,6,16 2.212,92 2,O%,W 1,H,824 \W,W l74q$ '.93,16 1952,2e5,& EZW U,M $,38 &,611 21ZW m,6D 35&m W,62 9D,S(qm) m,m *,u Bs,as lls u,223 14,82 [5,&0 1€,28 14219 352,35 n,A9 24,s {s3,87) 1W,62) 4t€1 r4s,m 4,m 8,y7,% 2r,258,42 D,E € 8,n7,6 8,78,324 m,{gm 20,G5,686 A,6,59 X,E2,n4 2LE r%5 \p2"8 \M,82 1,&,8 e$,m 2,4$,€5 2,4\fr L58,932 3,103,37 1 416,53 797,82 36tr (S,3rc| 18,42 1 5s 49,€3 4t9,0n B,S 338,5$ 6,4rc 2,m,t47 r"g.as Ls17,m z&,%2 zg,w 3,8,6 aB,m 1olgs 1,95863 3,5A,8 8,22"fi1 4,6,41 42n,28 2LM,2t 72674,1A ts,S,m 22ffi,3* 2{65,e 22"ffi,87 23,8,* 1A2,811 r,D2,2S (S1'm) (lC,A) lD,14l zs,% lEUl 3,@3,s 5,2mA76 7,W,H(3,97&U) (431ru) (3,9,81) S,S,m 9,H,S A.87jy 19,A,ffi 6516m 27,W,W tt,yL2n 5 (7153, (2,91,151) (1,6,31) tm,S 8,925,559 15,92,& ts,r@,yo S,5r0,49 3142Om g.39LOr1 I23 11.A.1 Packet Pg. 371 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) L51{@1S,S LAe 9dra6; zoi,stfr,a 3,!a,m ufr,O q,45,@ trtsl&a 6,14S aeL6 16D,44 I,S,a57 : zl8I1 4rB,m sG$ t'!al,G1 q,@ tmE atag a,sr,E kHull Tel unE*rcd T&lGmdd Alltu@lmdffi3 frUx&thd adEpiEmil hG d Nbll..J.ty @n. ActEdEm.il huede l6d SFdd renr tunds Iddl#rlmdludt I@l t4mmntd fudr CTTY OF MARCO ISIAND, FLORIDA ;utd ldE, ot GamntJ ?u.rd, Grildt dl l-t Yan Flsl V.- Gl l^@la-l' ot^qrrdrfl u_____4!_upaa_____4_p-____!!_o sadEE131tEE \D4U LaaAs L2-,ar s1f '2"9. L@,3 t66qs2O,A b,D LA 2OA 5[,S 4@t 5S,E 1,1S,S7,9,9 49,5 tn3,D gG,g z@@ 65,ft . lqE,aa !,ru,98 9qu 1a16S e,r26,., ____E!ggl?!_ ____gg!!!_ e,s,e ,,sa LGd ____4!gq9=_ ' p,a,a ' r\d,m ' tg.s,p 3 '6a' &EU a6aB 9-9.& 1.9U ZEO 2U.q a.AA Da.tfr ' b-A3n g,m $,& 32AGS,e 5,5116LAA CgS t 5rl,6! qu,q -863,3t LD,2b 4nn 266$1 2,22o,S lrGElsLD Zg31 ar\q as,@s'rtp 16,4{ 7,@"4 qa,6 - 1S,& lg$ aa!6S !ry,Uqqq a,Bg 4,4.61 e,6qp ld.lad.n@il.|lsds (1) ft. ClryEa.n to Epn.Gru.llnfomdld trn ltlmpl.n..tdGgtd.milvln iel F..U. 3 E_SU 246.8 a!15,6 Ar{.9 t9.l5L9S t7_D|.fr 73.*.re $.9r.592 E.Eg' D.*.61' t24 - tgr,g l,EB L6.67 67_g ,,a2,s r,Gr@ t$l.u D3,s 3 rd&$ lail& a.&r&r'fr-fr-*2' tll9g'loou.sB' l-Br-ft2' !.nL&' ,-s7-a7t' LEL2G 11.A.1 Packet Pg. 372 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Sduha urnf,rdFdB ld.[d..rrmnd ctq.. fd -derHm. d tddtuE. ldEEMt eEdrmmnt th des. @.@ndl.no tuilqerlor &Mdlt6dd bdlt*6i Td.Ede6. Aes {d.tld.nq) ot nv.net oy..(ud..).rtsdbn. tu.flDd{.6@.lu*.) P@.CrfEm el. olqlbl .st Tel&rtlmdqsE! lurtl i.! Cqr ln td U.m hbt rlfu a. tsEnt* ol.on-opid.rtsdltw. cirdiltln(ts.&) CTld Mlry ld*d In amhi.tts.du.. CITY OF MARCO ISLAND, FLORIDA ch.,Is ln Futtd a.aIE. ct Cdttlrild Frmd. (t E dh.dl l..at Tan Flacal Yau [, (Modafi.d A€ud frb oa^@tlnal -___-!1!..._ _____48_ ____-4_ ____-4L_ ____.4t_ ______j!El_ -__-_.44_ @ a N 9 414s1 8&3,4U 17, Xam Lz744 D,g,rD 1ZS,@ 1ZB!U llS,OA 9,q@ rtrg,B2,U2b agF 18@ lga,S trt83'1E Bg 8S 6,W 4,U LqE+9"8 a,€,8 19,@ 3,@,&1 1665,64 +U,D 3,9+57a a@,@ \4,9 +Dt arl ts41E l6a3,1B 1a5S 121&3U t2rz6 %A 'Lg 4ry 3r1e S,6rsa,@ 0@ t70,q q$ EE Bta !r"g sB,u 8s1 &@1E,& g,$ &,D 83r &9 214$1 24aD A,D s,Q S,6xes ____gp_ ____-9@_ _____lzg!_ _____J4.!!9_ _______l!Egg_ 4L.7 ____!!!t3€_ ______-!!q!!g_ I,566,6 24,55,U 6,!LE 44,8 Za,t L6 Z+B,q U,6,4 E,sr+Bt L,fr,U E,91@ 18,6 3,94fl 'U,574 1@C1 il6a'9 \@,D7 aa[a a4G a62.9 3,6@,%6!q,ru t5a&7 a8a +$a,s +Eq 4uza7 1Ea,3u t s,u 3,{a,B 149!6,tq,6 694@ 5,4,@ tBg {e,5 +AtS 5,@,3 a,8,@ aAE 3,StrA12€$ 2Ag Sr,Z &D L,6O A@ &E 24,@ 22o57 af,,@Lgs tr8@ \2d67 ll1tiu trElro LrO+B 1,8,16 L352,G L55s LU,fr2.Xag LCr,g 2.-,A 1G,S 2,521,S LIA,D l!a,$ l76AC \&rO r,IteB1g e.€ ft128 6A.A S,E LgO \@,5U lS,3D l.DtU lZLg a,&g tr€o? 1,2!451 1116@ r,@t@ L9a,6 aE5E ZOD,N \6,q trAaC -_1W_ e.aa r.&u ___J,t-Jl,€- lE@ _14E9 _-___-!EEg3_ _____!f-f,!_ ___lrlg!Eg_ r+s& .Lq6 __-!g@D_ -_2l!q4_ __EgLZ!_ 2u1.8 a,24.8 ____-3LESgp_ ____-31!!1!E3_ B.*,!p {LX!S) (3,Ua,5' {1a6658) t&E aAa.A tr5a,5E (LErr'} 8W IiEArDl (7,6aat} t5r4D 1r6eB ',S2,S Zfi,r$ tar+€ Brc 7,4* ZrqE t1m,t9 46rj(t5rro t43o,5Dt (a€,sj (1rr,at (t3r4€t {rl2€,2r9 (zo.6,sl (zr@,s_} tr2.m,1D_) ,*T:#} 6LS - B,S &@ - 5L6rsm ___lg::e_ 2.&@ _{992!iI _14!E933_ s.{r _t!t!99_ 5n.@6 _@_ s %.6, 5 {a-4ut 5 7.8.a8 aqzD aqE LO6 {LO.ZI &.S tdU9D tr.6r{l t25 8G 7.G AalX O O oo'gr'ng'u.u s a%a1 ,44 asa 1s4 \rL@ aEET {5a \B,tn 1176,6 1+Se 9 5-98.257 9.W.2a7 t.4r.A 3.58,{9 3,&-r1 4.31Ln7 5.f1G1 5 6h.e U-s.2G 162a7 1$ ir; ru oq uF o ar @t iddd rhn rlimC.Ed @ledil xrn od Er&. 11.A.1 Packet Pg. 373 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Schedulc 5 Flscal Yea. TdYear Real PrcPeatY 2@7 2W l1-,*2,4*,a55 94,191,44 CTTY OF MARCO ISIAND, FLORTDA Assessed value of Taxable Property {Unaudlted) Last Ten Fiscal Years ToEl Taxable (2' Percenbge lncease (EEcrces€) Over Prlor Year 2@7 Ll,476,4t3,2o2 2(Da LO,401,70L,636 20,,.o 2009 9,24€,L74,62 2011 2010 &191,450,914 72,076,622,349 27,1:% ,.1.570,541,313 -4.2% 10,!146,293,910 -9.4% 9,326,970,565 -11.496 a,27t,2SS,U9 -L7.396 7 ,567 ,995,1L5 -4.5% 7,4L1,207,a73 -2.L96 7,544,486,@3 4.9% 7,970,552,473 5.6% 4,6L9, 4,889 A.L36 9,365,473,073 A.796 2011 7,493,705,720 74,2a9,395 x)a3 2012 7 ,v2,959,O34 6a, 244, 439 2014 2013 7 ,474,o69,t44 7o,416,97s 2015 2014 7 ,9@,449,69 70,aO2,4L9 2016 2015 4,550.,755,954 69,2@,934 2ot? t't zot6 9,zrra,ut,L3,6 67,4)1,937 93,7@,,.tl u,592,274 7A,?95,7o3 79,@,L35 Tot.l Dlrect Td R*e 1.314 a.243 a.477 4.747 1.994 2.O77 2.OaO 2.O76 2.tsa 2.142 2.OU l') lnformationonly.2()16assessedvaluesareusedforfiscalyear2OlTtaxrevenues(z) Adual taxable value, as repofted in this schedule, are net of ceftain tax_exemptlons. Assessed value is not provided be@use it @nnot be reasonably estimated based on adual values. Source: Collier Couhty Property Appraiser t26 11.A.1 Packet Pg. 374 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Schedule 6 CITY OF MARCO ISLAND, FLORIDA Property Tax Rates for Direct and Overlappint Governments (Per $1,OOO Assessed Valuesl (Unaudited) Last Ten Fiscal Years Overlapplnt Flsl City Collier Year Clty Debt County Ended Op€Etlng Scrvte OpeEting 2@7 1.2445 0.0736 3.7290 2m8 1.2044 0.0785 3.1,159 2@9 1.3917 0.0849 3.2969 2010 1.6518 0.09ss 3.564s 207L 1.8900 0.1079 3.5645 2072 1.9592 0.1777 !95 2013 1.96m O.t2U 3.s645 20L4 1.96@ 0.1163 3.5645 2015 2.U6 0.1041 3.545 2016 2.W 0.0953 3.5645 2o!71't 1.9966 o.og78 3.sG45 (1) lnformationonly. Collie. sch@l Eoard South FL Water Water Pollution ttig Cypress B6in colli€r County Other Mosquito Contrcl Management Contrcl Total L€w 5.5250 5.3510 4.9090 5.2390 5.5990 5.52m 5.5750 5.69(n 5.58@ s.480 5.2450 0.0680 0.0635 0.0635 0.0720 0.0826 0.0934 0.1102 0.10so 0.1001 0.0940 0.G78 0.2840 o.0320 0.2425 o.2265 o.226s o.2265 0.2265 0.1633 0.1633 0.1593 0.1520 0.7429 0.1336 0.2549 0.0293 0.2549 0.0293 0.1785 0.0293 0.7757 0.0293 0.1585 0.0293 o.15Tt 0.0293 0.1459 0.0293 0.13s9 0.0293 0.25m 11.4485 0.3742 10.7283 0.2329 10.4896 0.25m 1L3835 0.25m 72.tU7 0.25m 118829 0.25(D 11.9494 o.ocpo 71.7929 o.(xm 7L.7y3 o.qm 11.5985 o.ffD 11.2805 L27 11.A.1 Packet Pg. 375 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) t6 q6 qrq otn olli our ofr o6 oq q6 cnY oF MARCO tsl ND, FLORTDA P"lndp.l ?ropcrty T4.y.E (th{r.fir.d} F6 th. Ctmrt Cal.nd.r Ye* .rd ilim Y..6 Aao ,ltqlu rdtd&g ltrql@ Xdldked ruDe, ,@rybyfJP!_ rd.vdll& B vadd r.w. &fiBrF rrd.vdudd unl vJd6 MrcoHot.lh.. kPldllY S 9LS,A km&dbtelrE krrdtry 9.24,D BREtuth.rstR.bilHodinstrC HosPitalily 4,74,1{ ,ublli toErkeB h fupriq G.t.r Lt2\g TalbdTrurt Sh8!e r.mlly Rcsidcne 9,4,9 S Esl.nde uC hPpl{ C.nt.r 9,6,@ van Cle.f, ery R& buB. slnde Famlly n.sidenc qS,g vefttian ltu nmnB, trc hPpiqQnt., l.arz$ Cudi3,Deld B,VldlA Slql.famllyR.ti&ne 1.q,@ r3l.dPlilalnws.natrC !.g1. Femlly&d&E 1,4,U Td S----EEE h@: dlicrtuEPrcFryAppEBe, I 2 ! 5 5 7 8 9 a g $ 819U,e 6,@,49 3,6n,!9 684 4,o,2$ o 1oa57 o,G,455 &18S 7,N,8 1,N,ru $-31ry- offi 0.38 0.2* 0. l* o 11% 0.6 0.6 0.ffi 0.ffi 0.6 !s CityN.non.l &nkdMad h@&db!.1|rc Edottun.6iip r@ni.3 bmTMQnt.r,le 6rSHolditrF,lic v.mtian h€itmnb.lE &dffihlryr 9[kFiltvi.&E &dM.&Flryr &CM.rEl*r sld. F.nily&nd.E I 2 3 a 5 5 E 9 10 L28 11.A.1 Packet Pg. 376 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FTORIDA Property Tax Levaes and Collections (r) (Unaudited) Last Ten Fiscal Years Schedule 8 Flsel T.x Y.a. Y.ar 2@6 2m5 2@7 2ffi 2m 267 2W 2@a ToEl Taxbvy (2) 13,163,819 16,87,L32 15,68,4 16,747,@9 L6,177,@ L6,525,44 L5,7A7,969 15,419,O18 15,672,922 47,447-%3 18,63,103 Curcnt Tax Colledlons (2) Perent of Current &llnquent Total Taxes Tax Colledlons Colledcd Collcdlons To DarG Percen! of Total Colledions To Date 20LO 2011 20L2 20L3 2044 2015 2016 2@ 2010 2011 2042 2013 2014 2015 12.7L3,792 a6,2L2,857 15,124,942 16,276,%3 15,@,516 1s,67,796 15,180, Ba a4,a97,743 15,1v,335 16,565,510 t7,796,052 96.6"A %.2% %.4% 97.M 95.7% %.w 96.696 96.6% %.6% $.6% %.4% 96.% %.2% 96.6 97.3% %.% .496 96.6 %,% %.% %.% %.4% 9,304 L2-723,@6 11,693 t6,224,550 27,8 a5,aS2,7G 50,634 16,327,581 2,3A7 15,642,*3 14,310 15,42,16 6,462 1t1$,a9 10,619 14,$4,362 45,060 15,179,39s 5,135 L6,570,45 2,994 L7,79,W Source: Collier County Tax Colle4or (1) Under Florlda State Statutes, property owners are entitled to up to a 496 reduclon in ad valorem tax payments forearlypayment. OutstandinSdellnquenttaxesfortheCityarenotsignificant. (2) Total tax lew and tax colledlon columns are Clty operatang and speclal voted debt serulce, and does not lnclude Hideaway Beach Tax Distrld. L29 11.A.1 Packet Pg. 377 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) s.hedule 9 Fiscal CTTY OT MARCO ISLAND, FTORIDA Ratlos of Outstandlng Debt by typ€ (Unaudltedl Last Ten Fiscal Years r'l (Modlfied Accrual Basis of Accountintl Sales General rax Water/sewer (rl srRP l') Total Percentage (3) Obligation Non Revenue Capital Revenue Assessment Primary of PeBonal Per(') Eonds Ad Valorem Bohds Leases Bonds & Loans Bonds & Notes Government lncome Capita 2@6 2@7 2004 2ffi 2010 2011 2072 2013 2014 2015 2016 9,315,000 &760,0@ & 195,0m 7,6ts,m 7,O25,W 6,415,000 5,790,m 4,725,N 3,55tm 2,605,m 1,540,0@ 475,m 60oo,o0o 77.86 19.8r.t6 22.4t% 27.9tX 34.22% 29.5p,,6 29.2@6 27.4r% 27.27% 24.8AX 22.5% 7,ffi 9,U4 9,751 17,7@ 1409O 73,767 73,62 73,426 7i,322 12,610 11,949 t6ss,clD 24L,425 1vs22,769 5,a)5,CXD 696,069 154,313,/01 3A),397 99,205,0@ - 179,614,397 - 143,119,420 13,16€.,7@ 164,3a4,334 27,28/.,Ot3 196,753,443 31986,098 231,259,880 38,821,253 226,375,396 9,778,723 225.7L5,Nt g,72A,W 225,665,191 52,3t7,347 227,2i5,9U 49,7*,459 2Lq%,28 47,18,,293 202,301,936 494O,@O 675,49 4s55,0@ 532,026 1a6,21&284 776,04.2,707 765,@6,v6 7*,273 76t,262,470 7,3L4,357 L53,725,2@ 7,0*,671 747 ,327,7s6 4,175,@ 3,7t5.@ 3,3@,0@ 2,930,@ 475,332 5,145,0@ 4480,O0O 6,O4s,@O 3,85,Om 6,O4tO00 3,OaO,mO 5,70t0m 1,980,(U) 470,t73 143,535,311 (1) Water and wastewater operations on Marco lsland and at Marco Shore5 acquired from Florida Water Seruies in November 2m3. {2)SepticTankReplacementProgram: includespermanentfinancintandstaterevolvingloans. AllofthisdebtissecuEdbyspecialassessmentdistricts. lncludes S34,S27,452 of State Loan finanonS for the Septic Tank Repla@ment ProgEm. (t)SeeTable 13ScheduleofDemographicandEconomicstatisti6forpe6onalin@meandpopulationdata. source: city of Marco lsland Finance Depaftment. 130 11.A.1 Packet Pg. 378 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITYOF MARCO ISLAND, FI.ORIDA Ratios of General Bonded Debt Outstanding (Unaudited) Last Ten Fiscal Years Percentage of Net Assessed {1} schedule 10 Fis@l Year General Obligation 2m6 9,3110m 0.098% 2@7 &76O,m O.O73% 2m8 8,195,0@ O.O77% 2@9 26110@ O.O73% 2010 zo2t0@ o.o75% 2011 6,41tm0 O,O78% 2072 5,790,m 0.0T716 5,145m 0.06996 4480,0@ 0.0s 3,825,m 0.04896 3,080,m 0.036% Per Capita 12) s92 554 486 453 424 390 350 311 270 229 ta2 2p73 2074 2015 20L6 {1)See Schedule 6, Assessed Value of Taxable Property, for net assessed property value data. {2}See Schedule 13, DemoSraphic and Economic Statistics, for population data. Source: Cityof Marco lsland Finance Department. 131 11.A.1 Packet Pg. 379 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) C]rY OF MARCO ISIAND, FTORIDA Direct and Overlapping Governmental Actiyities Debt (Unaudlted) As of Sefiember 30, 2016 Schedule 1l Oty of Ma6 lsland D-EGI D.bt Non Ad Valorem Capital lmprcvement Revenue Note GeneEl obligation bonds Sales tax revenue bonds Capital lea5es Total dired debt OYerlapping debt Collier County Colliercounty Sch@l Board Total overlapping debt Total dlEct and mdapplnt debt Esdmated Bdmaicd Shaeol l)!bt PerntagE DIEA and Outstandh Applleble orrlrlapplnsDrbt t705,m 3,@,m 19B0,mO 870,173 322,062,1t7 N,N,6n 1@.m96 1m.m96 lm.@96 lm.m96 5,705,0@ 3,080,m 1,980,000 470,t73 11,535,173 12.14% 39,097,727 t2.t4% _______47-;89,n2_ 6,2X,829 $-w- Debt outstanding data was prcvided by each govemmental unit. Overlappinggovemments are those that @incide, at least in part with lhe BeogEphic boundaries of the City. This sdredule estimates the portion of the outstanding debt of those overlapping govemments that is bome by the residents and businesses of tuaro lsland. Thit prcess reoSnizes that, when @nsidering the City's ability to issue and repay lonS-tem debt, the entire debt burden bome by th€ residents and businesses should b€ taken into a@unt. However, this does not imply that every taxpayer is a resid€nt and, therefore, responsible for repaying the debt of eadl overlapping Bovemment. L32 11.A.1 Packet Pg. 380 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA Pledted Revenre Eond coverage Watea/S€wea Revenue Bonds and Sales Til Reyenue Bmds (1) (unaudlted) Last Ten Fls€l YeaE S.hedule 12 W&r^awr bs ilal iaEnEr iat nawnuar Cilrlt Flsl Wdar/S.rcr lmpd Op.Ed[ WIdr Wlthout &bto Wlti YcI Rev.nE Fet ExFnri lnpdf.lr lmpdF..r 3ile lmpd F..s lmpd F..i 2m4o 1S,3S,7A \M'2% 7,83,W 9,ffi,2S 7,92,9v 4,22A78 2.15 2m5 18,6,517 1,374,A A314,An 118,103 9,7*,ffi 6,597,7U 1.@ 2(fi 19 6rc,9S ffi,35 8,92&93 111A,374 fr,711p8 5,57a,m 1@ 2&7 20,6$,3U 79,524 9,8A,S21 11,06S1 0,e1S7 6,574,3S 1.68 m ?1f]7,87 426,M 11,U7,517 11,516076 11,m,580 6,955,ffi 1.6 re 24,617,87 LL2"24 1LW,263 12,97,628 12,475,9 7,3s4,71I, 1.71 2010 25,332,tn 351,S1 11,S,O12 E,2n,7S 14,927,ffi 7,%,6n 2.01 2011 29,8n,159 21&68 LO,474,& 19,615,743 19,39?,675 &@,479 LA 2012 r,353,936 155,96 11,17116 17,3$,56 I7,1BL61O &83.539 L.97 20ts 26,917,S S2,55 11,M,6 163D,ffi 5,4n,*3 &919,076 1.83 2014 30,6,S1 6S,91 12,re,4p 19,116,470 A,457,58 9,25659 2.O7 2015 $,293,8 1273,y7 72,7D,O74 lE 9,531 1ZS,S 10,491,176 1.80 2016 29,94a,85 \W,87 D,fi2,@ 19,435,363 17,y5,% 10,473,653 1.86 {1) TheCitypurchasedth€waterandrewerutilityopeElionsinNovemb€rm3fromFloidaWaterSeilices,lnc.SlOlhillloninutlltyEvenu. bonds were issued tofinance the quisition. Salestax revenue bondsweE lssued in AuSust 2G. (2) Aduded sewerssessmentlont{emdebt. (3) &bt sewice coverage requirement, with impad fees lncluded in net rev€nues, is 1.D. (4) &btservicecov€mge rcquirement,withimpadfees€xcludedfrom netrevenues, is 1,10. (5) UilitywasaquiredNovemberZm3. FisdlYearmisapanialy€arforr.venuesandexpenses.oebtservieisanterestonly. Source: Cty of Mar@ lsland tinan@ Depanment 1.81 L€ LA L65 L59 1m L97 SC.. Iu Dcbt RaEnEs *rYle Care N/A N/A il/A 1814,116 0 Om ,"s2,m2 214,42 8.fl 1,s30,t0 213,310 7.8 ,,s,83 553,135 2.72 1,327,921 yl2n 2.i13 ,"s,346 59,A 2.52 r,492,056 y&16o 2.72 1,576,t4L 99,n5 2.A7 1,ffi,6 545,98 3. 11 \w,247 95,685 3.0 1,S,S9 96,897 3.A 2,O78jn 512,$7 4.6 133 11.A.1 Packet Pg. 381 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CTTY OF MARCO ISI.AND, FLORIDA Demographic and Economic Statistics (Unauditedl Last Ten Fiscal Years Schedule 13 Populalon ln@me W llr@m P.rcafiltaPeEonal FlorldaPercaplta Pcrcnal lnom F' Flo.ida U nemploymrit Ratclt,Flslyex CltyolMamlrlad('zr CollicrContyE'Statc of FloridaGr (ln i{lllruoldollil)r3'l l@m Fr 320881 2@? 15.825 33,858 2(m 16,856 34t54 2m9 16,816 $3,C12 2O1O 1648 (1) 333,554 lr) 2011 16443 321"520 2012 16,521 328,14 2013 16ss6 33,653 2074 16,@7 335,783 2015 16,78 v1,42 2016 16,930 35,.,n2 (1) Source: U.S. Census Bureau (2) Source: UniveEityof Florida Bureau of Eonomicand gusiness Releardr (3) Source: U.S. Departmentol Comme@ 8u.eau of EconomicAnalysis (4) Sour@: U.S. Department of LaborBurcau of LaborStatisti6 $,276,33L 684,382 59,895 18,580,367 72263L 63,276 14,47,279 7n,6tA 54559 18,750,483 m4,r9l 6r,807 18,7n 356 (r) 740,651 61,3G 18,801,310 7U,977 s998s 19,O57,y2 T8,62 59,2@ 19,259,y3 810,887 0,391 L9,go7,*9 8lrS7, il,A72 19,815,1&1 85(),178 A859 20,!a,554 9c),6:l6 7A,473 34,919 $,273 38,316 32s91 3Z8tt q,427 40,565 42,703 47,497 42,717 4,48 3.3 4.5 7.2 11.0 10.9 9.5 8.1 6.7 5.8 5,2 4.7 t34 11.A.1 Packet Pg. 382 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CIW OF MARCO ISIAND, FIORIDA Top Ten Employers, Naples-Marco lsland (Unauditedl Fiscal Year 2015 and Nine Years Ago schedule 14 Flsal Yea 20168)Fisal Year2(IIr(2) Collier County Public Schools NCH HealthGre System collier County Government (non-Sheriff ) Collier County Sheriff Ritz Carlton, Naples Gargiulo, lnc. Arthrex, lnc. Hometown lnspedion Svc. Publix Naples Gnnde Eeach Resort Health Care 1,056 7 Home Safety 9q) 8 Supemarket 8@ 9 Hospitality 1@ 10 1?,r7t Collier County Public Schools NCH Health€re System Employee Prcfessionals Colller County Government (non-Sheriff) Publix Supermarkets Rit. Carlton, Naples Collier County sheriff Mariott Corporation Naples Grande Resort and Club Cleveland Clinic Total BuslmssTypo Employecs nenk Public Education s,mo 1 Health Care 3,5m 2 Human Resour@s 1,39 3 Government 2,3il 4 Supermarket Z22L 5 Hospitality 1,5m 6 Government 1,100 7 Hospitality 843 8 Hospitality 830 9 Hospitality 7* 10 21"542 BuslnessType Employ€es Rank Public EduGtion Health Care Government Government Hospitality Food Safety 5,N 7 3,9) 2 t"570 3 1,379 4 1,110 5 1,110 6 (1) Source: Collier County Clerk of Couns Fiscal Year 2017 Budget (2) Source: CollierCounty Fiscl Year2007CAFR 135 11.A.1 Packet Pg. 383 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CTTY OF MARCO ISITND, FTORIDA Full-time Equlvalent Employees by Department as of September 3O, 2O16 (Unaudited) Last Ten Fiscal Years zotee) 2oti 2or4 2ot3 x)t2 2o:^r zord'') Ng 2txn zutT CommunityDevelopment 4 4 5 5 4 7 6 42 41.5 3A 3A 3a 3a schedule 15 Depart.r.nt General Fund: Executive Administrative I nformation TechnoloSy Finance 7 3 6 7 3 7 7 1 7 2.5 6 1 7 7!41415 6Aaa 3a 3a 35 35Fire / Rescue Code Compliance Police Publlc works Parks and Recreation 109109151520151515 3333 41.5 41.5 35.5 35.5 11 13 5.5 6 125.5 125.5 116.5 116.5 427.5 130 t27 ,.26 69 69 7a 77 74 63 61 5a 10.5 A.5 a A 10 10 10 10 9.25 3- 35.5 36 36 36 10 11 11 11 35 39 9L2 Total General Fund L23.25 123 water / Sewer Enterprise Fund Building Seryices Fund Recreatlon Enterprase Fund 33333.53.S4.531 Total 201.5 2OS 2Oa 26 26 2O5 2a6 26 2Ot 195 (1) AreorSanizatlonofdepartmentsoccurredafterthefls@lyear2OlObudSetwasadopted.Authorizedpositions listed are the positions approved on adoption of the fis@l year budget. (2) lnformationTechnologyincludedinExecutiveAdmininistEtionforprioryea6. Source: City of Marco lsland, Human Resources Depanment. 136 4 11.25 67 t2 11.A.1 Packet Pg. 384 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO tStAND, FLORIDA Operating lndicators by Department (Unauditedl Last Ten Fiscal Years m$ 2ot5 ar14 m8 zJt2 2011 2010 2d,9 MA 2gn Schedule 16 Ircpa.tsrent Police Department Calls forSeryice Fire Department calls forseryice Euilding Department New Single-Family Homes New Multi-Familv Units Total Permits lssued Water Production Numberof Customeri Raw Flow into Water Plants: (Surface and Ground) Average Dailv Treatment (Mallions of gallons) Maximum Daily Treatment (Millions of Eallons) Wastewater Treatment Number of Customers tlow into Wastewater Plants: Average 0aily Treatment (Millions of gallons) Maximum Daily Treatment (Millions of 8allons) Source: City of Marco lsland 47,7 42,ffi 3,42i 3,413 58,8S5 58,014 2,897 m,7& n,628 68,215 6r"430 52,273 2,688 2,82 2,4{ 2,44 2,971 101 25 9,5t7 10.25 t6.22 1032 t.87 3.m 28 7 t19l 9,495 8.88 14.27 5669 1.83 4.65 43 5,4565,UL t369 9 5E3 7.97 16.25 5,149 9,75 7.89 L6.25 5,381 4,800 10,437 10,340 9,554 9,47 7.* 7.58 7.N 1.0210.a) Lo.n rc.63 8.99 9,550 9,426 9,(l5 8,552 2.@ 2.U 2.@ 2.03 4.80 3.25 3.54 3.20 4,424 a37S 1.96 1.94 3.76 3.72 9,623 9,424 7.n 63716.01 I}.O5 7,W 6,412 7.92 1.91 3.67 3.4 L37 3,577 114 5,i182 105 5,8&! 11.A.1 Packet Pg. 385 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISIAND, FTORIDA Capital Asset Statistics by Function/Program (Unaudited) Last Ten Fiscal Years Fis€l Year 2oit6 2015 2014 mt3 2012 2011 2010 2(x)9 2(x)A 2Nt S.riedule 17 Function/Prc3Em Police Department Number of Stations Number of Patrol Units Fire Department Number of Stations Parks and Recreation Number of Parks Park Acreage Tennis Courts Bocce Ball Courts Shuffleboard courts Racduetball Courts Basketball Courts Baseball/softball Diamonds Teen Center Public Beach Access Publ ic River Access Public works streets (Centerline Miles) Slgnalized intersections Bri dge s Uti lities Number of Water Plants Number of waste water Plants water Lines (Miles) Sewer Lines (Miles) Source: City of Marco lsland 11111 t2 t2 t2 t2 72 22222 10 @.0 a 3 7 2 1 3 1 2 1 10 @.o 8 3 7 2 1 3 1 2 1 10 60.o 10 3 7 2 1 3 1 2 1 L27 10 15 3 2 155 202 10 60.0 10 3 7 2 1 3 1 2 I 127 10 15 3 2 155 202 lo @.o 10 3 7 1 3 1 2 1 L27 10 15 3 2 155 191 1 11 2 10 60.0 10 3 7 2 1 3 1 2 1 L27 10 15 3 2 155 t75 7 11 2 10 @.o lo 3 7 2 I 3 I 2 1 L27 10 15 3 llo 160 2 10 60.0 10 3 7 2 1 3 I 2 1 727 10 15 3 2 140 145 2 8 s3.8 lo 3 4 2 1 2 1 I 1 727 10 15 3 2 7& 132 1 72 2 8 s3.8 10 2 4 2 1 2 o L L L27 8 t2 3 2 t& 86 1 L2 1 72 L27 127 10 10 15 15 33 22 155 155 202 m2 138 11.A.1 Packet Pg. 386 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAND, FLORIDA SINGTE AUDIT AND OTHER REPORTS AND LETTERS 139 11.A.1 Packet Pg. 387 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) clw oF MARco lsLAND, FtoRlDA This page intentionally left blank. L40 11.A.1 Packet Pg. 388 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) \z[eurnrx &JENKINS INDEPEI\DENT AUDITOR'S REPORT ON INTERNAL CONTROL OYER FINAI\ICIAL REPORTING AI\ID ON COMPLIANCE AI\D OTHER MATTERS BASED ON AI\ AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDAI\CE WITH GOYERNMENT AADITING STANDARDS City Council and City Manager City of Marco Island, Florida, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Goverament Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business- type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Marco Island, Florida (the "City"), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated March 2L,2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (intemal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's intemal control. Accordingly, we do not express an opinion on the effectiveness of the City's intemal control. A deJiciency 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 wealorcss is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant de/iciency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identiff all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identiff any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. l40l MANATEE AVENUE WEST, SUrTE 1200 . BRADENTON, FLORIDA 34205-6708.941-741-4483. 85s-89r-0070 . FAX94I-747-6035 MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PI.]BLIC ACCOI.]NTANTS . WWW.MJCPA.COM 11.A.1 Packet Pg. 389 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Compliance and Other Matters As part of obtaining reasonable assurance about whether the City'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 or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. rbta lfi,4e,xo(e Bradenton, Florida March 21,2017 142 11.A.1 Packet Pg. 390 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ]\z[eurnm &JENKINS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACII MAJOR FEDERAL PROGRAM AI\TD ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDAIICE City Council and City Manager City of Marco Island, Florida, Florida Report on Compliance for Each Major Federal Program We have audited the City of Marco Island, Florida's (the "City") compliance with the types of compliance requirements described inthe OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended September 30, 2016. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal progmms. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Uniform Guidance requires that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program ocurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program, however, our audit does not provide a legal determination of the City's compliance. Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30,2016. 1401 MANATEE AVENUE WEST, SUITE 1200 . BRADENTON, FLORIDA 34205-7440.941-7474483. 855-891-0070 . FeX94l-747-6035 MEMBERS OF THE AMENCAN INSTIruTE OF CERTIFIED PUBLIC ACCOUNTANTS . WWW.MJCPA.COM 11.A.1 Packet Pg. 391 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the t)?es of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in intemal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in intemal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in intemal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identiff all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identiff any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Bradenton, Florida March 21,2017 (r-tA ifi^(,*,X{e 144 11.A.1 Packet Pg. 392 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) ctTY oF MARCO ISIAND, FLORTDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR YEAR ENDED SEPTEMEER 30, 2016 Federal Awards lndlrect Federal Awards US Department of Transportation Passed through Florida Department of Transportation Local Agency Program (LAP) - Marco lsland Sidewalks 2O.2OS 429898-1-58-01 S 445,518 Local Agency Program (LAP) - Landmark Bike Lanes 20.205 430876-1-58-01 239,859 Local Agency Program (LAP) - Sidewalks S Barfield-lnlet 20.205 430878-1-58-01 318,570 S 1po3rr48 US Department of Homeland Security Passed through Florida Department of Financial Services Division of Emergency Management Fire Hazardous Material - 2015 Total Expendhures of Federal Awards 97.067 15-DS-P4-09-21-02-347 s tr,OOS 11,005 Federal/State Agency, Pass-through Entity Federal Program/state Project CFDAI CFSA No. Grantors Number Expenditures s 1,0149s3 145 11.A.1 Packet Pg. 393 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISI.AND, FLORIDA v NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Basis of Presentataon The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City, and is presented using the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federol Regulotions (CFR) Part 2OO, Uniform Administrotive Requirements, Cost Principles, ond Audit Requirements for Federol Awords. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis lndirect Cost Rate The City chose not to use the ten percent de minimis cost rate for the year ended September 30,20L6. Non-cash Awards The City did not receive non-cash federal awards during the year ended September 30, 2016. L46 11.A.1 Packet Pg. 394 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) CITY OF MARCO ISLAIID, FLORIDA SCHEDULE OF FINDINGS AI\D QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2016 SECTION I STIMMARY OF AIIDIT RESULTS Financial Statements Type of auditor's report issued Internal control over financial reporting: Matedal weaknesses identified? Significant deficiencies identified not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Programs Intemal Control over major federal or state programs: Material weaknesses identifi ed? Significant deficiencies identified not considered to be material weaknesses? Type of auditor's report issued on compliance for major Federal programs: Any audit findings disclosed that are required to be reported in accordance with the Uniform Guidance? Identification of major federal program: CFDA Number 20.205 Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? Unmodified _yes X no _yes X none reported _yes X no _yes X no _yes X none reported Unmodified _yes X no Name of Federal Prosram or Cluster U.S. Department of Transportation - Local Agency Program $750,000 _yes X no 147 11.A.1 Packet Pg. 395 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES Not current year findings noted SECTION III FEDERAL AWARD AND STATE FINANCIAL ASSISTANCE PROJECT FII\IDINGS AND QUESTIONED COSTS None noted. SECTION IV SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS Finding 2015-001 was corrected during the current year and is not repeated in this year's report. 148 11.A.1 Packet Pg. 396 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) \z[eurnm &JENKINS INDEPENDENT AUDITOR'S MANAGEMENT LETTER City Council and City Manager City of Marco Island, Florida Report on the Financial Statements We have audited the financial statements of the City of Marco Island, Florida (the "City"), as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated March 21,2017. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Untform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditor's Report on Compliance for Each Major Federal Program and Report on Intemal Control over Compliance Required by the Uniform Guidance; Schedule of Findings and Questioned Costs; and Independent Accountant's Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 21,2017, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(lxi)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. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report as recommendation 2015-001 was corrected during the current year and is not repeated in this year's report. Official Title and Legal Authority Section 10.554(1Xi)4., Rules of the Auditor General, requires that the name or offrcial title and legal authority for the primary govemment and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The City of Marco Island, Florida was incorporated in 1897. Additional information on the City's creation and the City's component unit are disclosed within the City's footnotes. Financial Condition Section 10.554(lxi)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(l), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 2 I 8.503(1), Florida Statutes. l40l MANATEE AVENUE WEST, SUrTE 1200 . BRADENTON, FLOzuDA34205-6708.941-74',t4483. 855-891-0070 .F/.X94t-747-6035 MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PI.]BLIC ACCOI.INTANTS . WWW.MJCPA.COM 11.A.1 Packet Pg. 397 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) Pursuant to Sections 10.554(1xi)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor the City's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(lxi)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the City for the fiscal year ended September 30,2016, filed with the Florida Department of Financial Services pursuant to Section 218.32(l)(a\ Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2016. In connection with our audit, we determined that these two reports were in agreement. Special District Component Units Section 10.554(l)(i)5.d, Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)0), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3Xb), Florida Statutes. Other Matters Section 10.554(lxi)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(lxi)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the affention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Leffer Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Mayor and Members of the City Council, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Bradenton, Florida March 21,2017 fb,tl,* ifr^4,p,X{e 150 11.A.1 Packet Pg. 398 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) \z[eurnrx &JENKINS INDEPENDENT AUDITOR'S REPORT City Council and City Manager City of Marco Island, Florida We have examined the City of Marco Island, Florida's (the "City") compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the City's compliance with those requirements. Our responsibility is to express an opinion on the City's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements. In our opinion, the City complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the City 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. Bradenton, Florida March 21,2017 fbUA* ifr,(,-,X{e 1401 MANATEE AVENUE WEST, SUrrE 1200 . BRADENTON, FLOzuDA 34205-6708 . 94t-7474483. 855-891-0070 . FAX94t-747-6035 MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PI]BLIC ACCOT]NTANTS . WWW.MJCPA.COM vl 11.A.1 Packet Pg. 399 Attachment: 2017 Marco Island CopCN (5704 : Marco Island Fire and Rescue COPCN) 1 Bureau of Emergency Services Division (BES) Questions 1. Your application states the operation of two ambulances. Knowing the likelihood of breakdowns, what will be your back-up plan, should one or more ambulances be out-of-service for maintenance? In order to meet the daily requirement of two ambulances, the city will have two additional ambulance vehicles available for maintenance and repair. 2. How will you manage unexpected surge or concurrent calls for service with more than one ambulance out-of-service or the high potential of two ambulances being off the island during hospital transport? The island will be covered for ALS needs by paramedic engines, ambulances and quick response personnel that will be able to stabilize and treat patients. There will be additional back up ambulance ready to be placed in service. 3. Your application refers to a hiring of 25% of your fire service staff as credentialed paramedics. Where do you plan to recruit those credentialed Paramedics from? Marco Island is an Equal Opportunity Employer. We will advertise to attract the best and most qualified candidates as we have in the past. We are proud of our recruitment process as should any organization. 4. In the event of a high-rise building fire or alarm, will transport paramedic personnel be pulled from ambulance duty to participate in fire-fighting duties and if so, how many and how will you maintain dual vehicle paramedic transport services during those high-rise fire alarm situations? The current system provides for automatic fire department aid from outside jurisdictions on a high-rise building fire. An ambulance does respond on confirmed high-rise fires because of the potential life hazard. Under the current model, ambulances are not dispatched to high-rise fire alarm situations. As with all emergencies, units are diverted based upon the prioritization of the call. 5. If in your design model you activate two ALS transport ambulances, how will you continue to staff ALS engines without Collier County EMS personnel or swap program? Our design model staffs all ALS engines and ambulances without Collier County personnel, as reflected in the Fitch report. 11.A.2 Packet Pg. 400 Attachment: 2018_04_20_BES Questions from Dan Summers (5704 : Marco Island Fire and Rescue COPCN) 2 6. Collier County has reviewed your proposed ALS in-service education program and sees little to no, hands-on clinical, Field Training Officer or Medical Director oversight to maintain proficiency, how would such clinical proficiency and oversight be maintained? The City disagrees with your assessment of our proposed ALS in-service education program. The proposal places additional supervision to oversee the program’s management inclusive of officers assigned to rescue units, the City is currently hiring a Fire/Ems Training Officer position, and the Medical Director will provide oversight in accordance with Florida State Statute. 7. Your application does not address transport unit move-ups, zone coverage, etc. Please advise as to how those system issues will be addressed. Will you be participating in closest unit dispatch? It is hoped that Collier County will enter into an Interlocal Agreement with the City to address transport unit move up and zone coverages, etc. It is not our intention to get out of closest unit response. The issue would have to be addressed through the Interlocal Agreement with the County. 8. How will your third ambulance be staffed for surge, drugs, staff and related equipment? All ambulances will be staffed and equipped to meet Florida State requirements in accordance with ALS licensure. 9. Your application states that Marco will receive a higher level of service. Higher or “highest” level of service is defined as the first responding ALS vehicle to arrive, such as your ALS Engines, how could a conversion to a transport unit improve service when a BLS and ALS unit such as the service provided by your ALS engines who arrive first, be considered a higher level of service? Under our proposal, all ALS engines and ambulance will operate at the same protocol level providing higher levels of service than currently is provided. Additionally, having a transport vehicle immediately on scene will provide a quicker response time to the hospital for patients. 10. Who will be your Medical Director and what contractual arrangements have been made regarding training, oversight, and quality assurance efforts? In accordance with the City’s purchasing ordinance, the city will solicit for the position of Medical Director through the Request for Qualifications (RFQ) process. The RFQ will define the necessary qualifications and standards in accordance with the State of Florida FSS 401.265. The Medical Director will provide the medical training, recertification and develop the City’s EMS protocols. It is the intention of the City to work with Collier County EMS and the County Medical Director to ensure the health and safety of all Collier County residents and visitors. 11.A.2 Packet Pg. 401 Attachment: 2018_04_20_BES Questions from Dan Summers (5704 : Marco Island Fire and Rescue COPCN) 3 11. Proposed cost of supplies, equipment, drugs, heart monitors appear to be quite lower than market cost with no room for spares for items during surge demand calls for service. How will you fund and to what levels of essential equipment will you have? The City will fund these items through its capital and operational budget as it currently does for existing equipment. Upon approval of our COPCN the necessary adjustments will be made in our FY19 budget. In accordance with the medical director requirements and Florida State Statutes 12. As a Class 1 provider you will be responsible for interfacility transports, should a call for service be requested. There is no mention of providing that service, if not, why? The service will be provided in accordance with Class 1 license upon receipt of a 911 call within the jurisdiction of Marco Island. 13. The community of Goodland is deleted from your service area map. What are your plans to provide service to Goodland? It is the intention of the City of Marco Island to continue its contractual agreement to provide services to Goodland. 14. If you have a staffing shortage from an extended leave by one or more employees, how will you cover this potential shortfall and will it place a transport unit or surge unit out of service? The City will handle its employee coverage in the same manner it currently does and has. 11.A.2 Packet Pg. 402 Attachment: 2018_04_20_BES Questions from Dan Summers (5704 : Marco Island Fire and Rescue COPCN) 「Manager "da 34112‐ 5746。(239)2528383・ FAX:(239)2524010 February 2Q 2018 Mr Lee Niblock′City Manager City of Marco:sland 50 Bald Eagie Dr市e Marco:sland FL 3414 RE:Marco lsland Ambulance Service Alternatives Dearttck, It was good to see you at Commissioner Fiala's recent Marco lsland Town Hall meeting. As the CiVs COPCN application continues to move through the review process, it occurred to me that I haven't formally presented some options for enhanced EMS service on the lsland that were presented prior to your arrival. l'm sure Chief Murphy has gone through these with you, but I wanted to make sure that they were formally presented to you for consideration and further exploration, if you so desired. The County Commission's adopted level of service standard for Marco lsland is an ALS travel time of eight (8) minutes or less 90% of the time. Currently, EMS exceeds this level of service standard utilizing the following resource development plan:00lnterlocal agreement with the City of Marco lsland Fire Department allows a swap of EMS and Fire personnel, enabling a City of Marco lsland Fire Department Fire apparatus to provide ALS service. Seasonal ambulance on Marco lsland (since 2014) from December through April "Zone Coverage" for Marco lsland provided 2417 /365 by the lsles of Capri unit, if not available, Medic 23 (East Naples) is relocated to Marco. The County provides ambulance transport services through a consolidated county-wide system with 26 ambulances and one helicopter that can be moved throughout the County as needed to answer approximately 38,000 calls for service. The system provided the following service to Marco lsland for the last three years: 2013‐2014 2014-2015 2015-2016 2324 calls for medical services 2436 calls for medical services 2497 calls for medical services 91% travel time of 8 minutes or less 96% travel time of 8 minutes or less 94% travel time of 8 minutes or less While the County never endorsed the need to change or add resources to the services provided to the City of Marco lsland, as an alternative to an ALS Transport COPCN, the County discussed the following alternatives at a joint workshop with the City in May 2OL7. 11.A.3 Packet Pg. 403 Attachment: Ochs alternatives (5704 : Marco Island Fire and Rescue COPCN) Current stafflng on Marco lsland: . County EMS Medic Rescue 50 (ambulance) o One (1) County Credentialed Paramedic (EMS employee) o Two (2) Marco lsland Fire personnel . Marco tsland Fire Apparatus (AerialTower) o One (1)County Credentialed Paramedic (EMS employee) o Three (3) Marco lsland Fire personnel Attemative #1: Reassign current staff/Eliminate Swap Piogram . County EMS Medic Rescue S0 (ambulance) o One (1) County Credentialed Paramedic (EMS Employee) o One (1) Marco lsland Fire employee . Marco lsland Fire Apparatus (AerialTower) o Three (3)Marco lsland Fire personnel . County EMS Medic Rescue 51(ambulance) o Re-allocate one (1) County Credentialed Paramedic (EMS employee) from Aerial Tower to second ambulance o Re-allocate one {1) Marco lsland Fire employee from Medic Rescue 50 to Medic Rescue 51 This alternative would remove the "swap componenf from the lnterloca I Agreement, but provide a second fulltime ambulance dedicated to Marco lsland by re-allocatint the second Marco lsland employee from Medic Rescue 50 to Medic Rescue 51and re-a llocating the CollierCounty credentialed paramedic from the AerialTowerto a second ambulance (Medic Rescue 51). This willallow Counly EMS to maintain controlof EMS services and reduce the risk of fragme ntation, while providing a second transport ambulance and additionalfire resource for Marco lsland. lnitially, County EMS could utilize a reserve ambulance and equipmentwith no added costsfor the re-allocation ofrcsources. lfthis alternative was implemented, the Citywould be required within 24 months to paythe Countyforthe cost ofa new ambulance and associated equipment? currently estimated at 5280,000. lnthe alternative, the City could transfer an asset deemed suitable bythe Countyto Collier EMS for this purpose. Alternative {2: Hhe an additional Param€dic/Maintain Swap Program . County EMs Medic Rescue 50 (ambulance) o One (1) County Credentialed Paramedic (EMS Employee) o One (1) Marco lsland Fire employee . Marco lsland Fire Apparatus (AerialTower) (staffin8 remains the same) o One (1) County Credentialed Paramedic (EMS employee) o Three (3) Marco lsland Fire personnel 11.A.3 Packet Pg. 404 Attachment: Ochs alternatives (5704 : Marco Island Fire and Rescue COPCN) . County EMs Medic Rescue 51(ambulance) o One (1) County Credentialed Paramedic {EMS employee) o Re-allocate one (1) Marco lsland Fire employee from Medic Rescue 50 to Medic Rescue 51 This alternative would maintain the "swap component''frcm the lnterlocalAgreement, but provide a second fulltime ambulance dedicated to Marco lsland by re-allocatin8 the second Marco lsland employee from Medic Rescue 50 to Medic Rescue 51and hiring an additional County EMS employee to staff Medic Rescue 51. This will allow County EMS to maintain controlof EMs services and reduce the risk offraSmentation, while providint a second transport ambulance and additional fire resource for Marco lsland. The cost to the City ofthis alternative is approximately 5514,751.82 for three (3) FTE5 and the cost of ambulance and equipment. fu sutgested above, an alternative would allow the City to initially only payfor the costs ofthe fully burdened FTE'5, deploying them temporarily on a reseNe County ambulance, and allow the City up to 24 monlhs from program implementation to provide funding fora new ambulance and equipmenl Altemative f3: Cost Share Additional Unit Keep the seasonal unit on Marco lsland year-round with Marco coverinB the additional cost. Th is wo u ld req uire six (6) additiona I FTES for the additiona I seven months at a cost of 5273,888.78 plus equipment for 517,500. Eventually the a mbulance willhave to be replaced at an approximate cost of5250,000and a cost share could be neSotiated at that time. This alternative will provide Marco with an additional full-time ambulance while maintainin8 one consolidated EMs s€rvice. Based on the information prcsented in your COPCN Application, eaah ofthese alternatives would be less costly forthe City than the estimated net cost to the City to operate its own AIS service. Overall, the current seNices provided by county EMS to the residents of Marco lsland exceed the level of service standards established by the Bcc. Our current tiered EMS system is designed to provide first responderand Basic Lifu Support priorto Advanced Life Suppon. All Marco lsland Fire Department apparatus that respond to emergency calls are equipped with the personneland equipmentto provide both BLs and initialAdvanced Life support care priorto the arrivalofa transport ambula nce. With the collabordtion ofthe City of Marco lsland Fire and County EMS residents are rcceivinS a level of service that not only exceeds the established levelofs€rvice standards but is amonS the best response areas within the County. The County remains open to further discussio n ofalternatives that were previously proposed. Sincerel" て鮭,ど ´ l-eo E. Ochs, Jr. County Manager CC: Len Price, Administrative Se ices Department Head 11.A.3 Packet Pg. 405 Attachment: Ochs alternatives (5704 : Marco Island Fire and Rescue COPCN) FINDINGS, REPORT AND RECOMMENDATIONS OF A MAJORITY OF THE COLLIER COUNTY EMERGENCY MEDICAL AUTHORITY TO THE BOARD OF COLLIER COUNTY COMMISSIONERS REGARDING THE MARCO ISLAND REQUEST FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO OPERATE TRANSPORT AMBULANCES May 9, 2018 Introduction As directed by the Board of County Commissioners in Section 7 of Collier County Ordinance 2016- ___ (December 13, 2016, amending Ordinance 2012-23), the Collier County Emergency Medical Authority has evaluated the pending request of the City of Marco Island for a Certificate of Public Convenience and Necessity to operate two first-line advanced life support ambulances with transport authority, and makes this written report to the BCC of its majority findings and recommendation. In addition to the directive of Section 7 of the EMA Ordinance, in Sections 1 through 6, the County Commissioners have tasked the Authority to analyze issues related to EMS in all of Collier County, to work to improve and enhance EMS in the entire County, to serve as a catalyst to effect cooperative arrangements among all resources within the County, including municipalities, for improvement of EMS Countywide and, finally, to make written recommendations to the BCC regarding those subjects. Scope of EMA Review The scope of the Emergency Medical Authority’s review of the Marco Application included the following: a. Review of all paperwork comprising the City’s application, including its written answers to questions posed by Collier County Staff and the EMA; b. Hearing comments and receiving questions from the public at several of the EMA’s regular public meetings prior to the May 1 Hearing; c. Review of positions taken and pronouncements made by Fitch & Associates in prior engagements and writings, because Fitch contributed so heavily to the work product behind Marco Island’s application, and because the City has offered up Fitch as the author of its “third party financial analysis,” which is one of the conditions in the State statute. d. Holding a special meeting on May 1, 2018, for the sole purpose of a hearing to receive and consider evidence from Marco Island in support of its petition, as well as evidence from Collier County senior staff, fire district representatives and members of the public. The hearing, which lasted approximately 6 hours, was electronically recorded including by means of redundancy devices. e. At the conclusion of the Hearing, which finished with final statements from all interested parties including members of the public, the EMA deliberated carefully and publicly over the issues presented. Following that deliberation, the Authority voted 3-2 to recommend approval of Marco’s COPCN request, subject, however, to several express conditions (stated and explained below) to be included in the certificate, in order to codify certain representations and assertions of the applicant and in order to protect the interests of the County as a whole, and all the taxpayers, residents and patients of Collier County, whether on or off-island. 11.A.4 Packet Pg. 406 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 2 f. Also, at the conclusion of the Hearing, the EMA voted unanimously to direct its Chairman to offer to meet with County and City representatives for the purpose of attempting to reach a consensus on conditions to which a County COPCN could be subject. g. Pursuant to that direction, the EMA Chairman met with various representatives of Collier County, including its EMS Chief, Bureau of Emergency Services Director and the Medical Director of Collier County. The general subject of the City’s application was discussed and, in particular, there were discussions of what would be the proper conditions necessary to be affixed to the COPCN in order to protect the interests of the County as a whole and assure fulfillment of the statements and representations made by the City in its application, written answers and at the Hearing . h. The EMA Chairman offered at the Hearing, and thereafter in writing, to meet with any and all officials of the City to discuss the same general subjects and the specific subject of proper conditions. At the writing of this document, no response from the City to those offers has been received. The COPCN Ordinance Section 50-57 of the Code of County Ordinances specifies the criteria for BCC approval of COPCNs. Pursuant to that ordinance, “The Board of County Commissioners shall not grant a certificate unless it shall find, after public hearing and based on competent evidence, that each of the following standards has been satisfied: (1) That there is a public necessity for the service. In making such determination, the Board of County Commissioners shall consider, as a minimum, the following factors: a. The extent to which the proposed service is needed to improve the overall emergency medical services (EMS) capabilities of the County. b. The effect of the proposed service on existing services with respect to quality of service and cost of service. c. The effect of the proposed service on the overall cost of EMS service in the county. d. The effect of the proposed service on existing hospitals and other health care facilities. e. The effect of the proposed service on personnel of existing services and the availability of sufficient qualified personnel in the local area to adequately staff all existing services. (2) That the applicant has sufficient knowledge and experience to properly operate the proposed service. (3) That, if applicable, there is an adequate revenue base for the proposed service. (4) That the proposed service will have sufficient personnel and equipment to adequately cover the proposed service area.” 11.A.4 Packet Pg. 407 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 3 We assume it is our charge to vet the Marco Island application in the same manner as the BCC will do after us. Therefore, we must first gain a working understanding of Ordinance 50-57, and the eight evaluation criteria spelled out in its Sections (1)-(4). These are collectively referred to herein as the “Ordinance Criteria.” Within Section (1) are five separate sub-criteria that all concern the concept of “public necessity.” We refer to them collectively herein as the “Public Necessity Criteria.” Section (1) states that there needs to be a public necessity for the service. Merriam Webster defines necessity to mean “the quality or state of being necessary.” It defines necessary as meaning “absolutely needed” or “logically unavoidable.” Using this definition, we have been unable to identify any evidence offered by Marco Island proving that there is a public necessity for the proposed service, in either the County as a whole, or even in the City of Marco Island itself. Indeed, the City’s representatives have repeatedly complimented CCEMS for the quality of its EMS service (notably, for its consistently excellent response times), although at present there are some disagreements involving, among other things, drug formulary and scope of paramedic practice. Instead, what we hear and read of the evidence is that Marco, at least its political leadership, wants not needs its own EMS transport service. Maybe the dictionary definition of necessity does not apply here. Could it be that the language chosen by the drafters of Ordinance 50-57 was intended to redefine necessity? As written, that appears to us to be the case. Under Section (1), the finding of public necessity is arrived at through a process of viewing the evidence presented, and other facts known, through the prism of, “as a minimum”, the five Public Necessity Criteria. First, let’s recount the recent history of this application. Marco Island County Application Marco Island submitted its application to the County on December 20, 2017 for a COPCN to operate one or more ALS ambulances with transport authority. The application package consisted of a cover letter, the application itself and nine numbered exhibits. County Staff and the EMA promptly began parallel tracks of evaluation. On February 6, Emergency Services Director Dan Summers sent a list of questions to Marco Island, and informed the City that its application would not be deemed complete until those questions had been answered. On April 12, the EMA sent its list of questions to Marco Island, subject to the same stipulation. The EMA requested Marco Island’s responses to both lists of questions on or before April 26, 2018 and invited the City to attend a special EMA meeting May 1, 2018 beginning at 9:00 AM, for a full hearing of the City’s application in which, among other things, Marco Island’s representatives would be afforded a full opportunity to present the case for the requested COPCN, to answer questions from EMA members and to ask questions of County Staff. Marco Island’s State Application Concurrent with its pursuit of a Collier County COPCN, Marco Island sought and obtained legislation from the State of Florida for an EMS patient transfer license directly issued by the State. The substantive terms of that legislation are as follows: “Section 1. Notwithstanding s. 401.25(2)(d), Florida Statutes, the City of Marco Island is exempt from the requirement to obtain a certificate of public convenience and necessity from Collier County if all the following 11.A.4 Packet Pg. 408 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 4 prerequisites are met: (1) The City of Marco Island applies to the Collier County Board of County Commissioners for a certificate of public convenience and necessity and the application is unapproved; (2) A third party financial analysis is prepared of the city's assumption of full emergency medical service transport services at the paramedic level; and (3) A majority of those qualified electors residing within the City of Marco Island who participate by voting in the referendum described in section 3 vote to approve for the city to assume these additional services. If all criteria set forth herein and in s. 401.25(2)(a), (b), and (c), Florida Statutes, are met, the Department of Health may issue a license to the City of Marco Island to enable the city's Fire Rescue Department to provide prehospital or interfacility advanced life support services or basic life support transportation services. Section 2. This act does not prevent the Department of Health from enforcing any other provision of chapter 401, Florida Statutes, in connection with the application or grant of a license to the City of Marco Island to provide emergency medical transportation services as described in section 1. Section 3. This act shall take effect upon its approval by a majority vote of those qualified electors residing within the City of Marco Island voting in a referendum to be held in conjunction with a primary election to be held in the City of Marco Island on August 28, 2018, except that this section shall take effect upon becoming a law.” Evaluation of the Marco Island Application against the Criteria in County Ordinance 50-57 First, it must be noted that Marco Island bears the burden of proving its entitlement to the COCN by competent evidence. Marco endeavored to carry this burden largely by means of the Fitch & Associates analysis of County Ordinance 50-57. Here is a summary of Marco’s main assertions (found principally in Fitch’s analysis of the Public Necessity Criteria) along with other evidence received, and unanswered questions, pertinent to those assertions: 1. Marco asserts that approval of the City’s COPCN will improve the overall capabilities of EMS for the entire County by freeing up two of the County’s front line medic units and several County paramedics for service elsewhere. This assertion is misleading. During the preceding four months alone, CCEMS’s mainland-based EMS resources were summoned 623 times to answer Marco calls, because the Island-based ambulances were already out on other calls. 2. Marco asserts that since the cost of the new service will be borne by Marco taxpayers, the rest of the County will benefit financially from granting the COPCN, which will not adversely impact County taxpayers. This assertion will be one of the Majority’s recommended conditions, as noted later. 3. Marco claims that EMS transport services it seeks to provide will meet or exceed the County’s standards of performance. Of course, this remains to be seen. What we do know, however, is that, historically, Marco’s “firefighter first responder ‘time to 11.A.4 Packet Pg. 409 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 5 patient’” has frequently failed to achieve the County’s four-minute standard. Actual statistics for Marco’s fire apparatus EMS response times to patient for 2017 are as follows (statistics from Collier County Sheriff’s Office Fire Dispatch Center): Month Count AvgResponse TimeSeconds Jan 211 382 - 6.3min Feb 199 400 - 6.6min Mar 219 361 - 6.0min Apr 164 361 - 6.0min May 167 337 - 5.6min Jun 108 382 - 6.4min Jul 141 357 - 5.9min Aug 118 294 - 4.9min Sep 57 327 - 5.5min Oct 137 314 - 5.2min Nov 165 400 - 6.6min Dec 168 351 - 5.9min 4. It is universally recognized that BLS, or basic life support, which is provided by first responders (most often firefighters) immediately upon making patient contact, saves more lives than ALS, or advanced life support. For instance, essential to the survival of cardiac arrest patients is the beginning of BLS as soon as possible. BLS in such cases would include the initiation of CPR, defibrillation when indicated, and delivery of 100% oxygen. The County’s standard is four minutes. As shown above, Marco’s Fire Department average response time last year was longer than the County’s standard for 12 out of 12 months. This is hardly a ringing endorsement for the City to take over EMS, and certainly must be addressed and remedied immediately. 5. Marco concedes that with new competition from the City for qualified paramedic employees, there may be a negative effect upon Collier County EMS, and the ALS fire districts and departments, which seek to retain their current employees and hire new ones from the available pool of qualified paramedic applicants. The likelihood of attempted cherry-picking of CCEMS paramedics is, itself, a compliment of the very service Marco now criticizes. 6. The EMA has been informed that Marco representatives have already made several solicitations of CCEMS Paramedics to jump ship when Marco gets its transport license. 7. The EMA is also aware of the current hiring conditions in Collier County. There is a serious shortage of trained paramedics in the job applicant pool. Even if the supply of applicants were plentiful, it would likely take CCEMS two years to train and release for duty 12 replacement paramedics. This is a serious problem for the entire 2100 square miles of Collier County, for which there cannot help but be adverse consequences to its residents, particularly for those in the more remote areas of Eastern and Northern Collier County. 11.A.4 Packet Pg. 410 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 6 8. Marco believes it should be granted more latitude in the medications it may carry on its pumpers and rescue squads. Two such medicines have been brought to our attention: The benzodiazepine Versed, which is used, among other purposes, to stop active seizures. Although it is not available on all its nontransport apparatuses in Marco, it is available on Marco’s MR 50 and Tower 50. We were informed at the hearing that a six-month review of the valium request is underway. Principal concerns on the part of the medical director had been the infrequency with which Valium has been needed for use in the past versus the high frequency of needing to discard unused expired medicine. The second medicine in question is Adenosine Triphosphate, or ATP. ATP is indicated in prehospital settings only in the relatively infrequent cases of certain unstable forms of narrow complex tachycardia exceeding 150 beats per minute that have been refractory to vagal maneuvers and other less severe interventions. When administered properly, ATP temporarily stops the heart. The patient is in momentary asystole. When used improperly, such as to treat a wide complex tachycardia, the medicine can kill the patient. The Medical Director has not yet certified the Marco-employed paramedics to use ATP when they are by themselves, although the patients on Marco Island can receive the medicine pre-hospital from MR 50, Medic 803, Medic 90 and Medic 23, which frequently respond to the Island, as well as any other CCEMS ambulance dispatched to Marco. 9. No claim was made in Marco’s application, and no evidence was presented to the EMA at its May 1 Hearing, that there is a “public necessity” either under the aforementioned dictionary definition of “necessity” or under the eight Ordinance Criteria. Specifically, beyond the mere existence of two medic units on Island owned and staffed exclusively by Marco employees, there has been no sufficiently detailed evidence presented that these new resources alone will satisfy the first three Public Necessity Criteria: (a) improve the overall emergency medical services capabilities of the County, (b) have a positive effect on existing services with respect to quality of service and cost of service, and (c) have a positive effect on the overall cost of EMS service in the County. Instead of solid evidence, Marco Island simply “kicks the can down the road” by offering later to “work all these things out” in negotiations over an interlocal agreement. This is little more than “cold comfort” to the County right now, and insufficient to meet Marco’s burden of proof. 10. With respect to Public Necessity Criteria 1(d), no evidence was introduced as to the effect of the proposed service on existing hospitals and other health care facilities. It is fair to presume that a Marco COPCN would have no materially negative impact on existing hospitals. 11. Regarding Public Necessity Criteria 1(e), Marco essentially concedes the negative effect of the proposed service on personnel of existing services due to the lesser availability of sufficient qualified personnel in the local area adequately to staff all existing services. 12. There was much discussion at the Hearing about whether, as a general rule, regionalized EMS service delivery is preferable to fragmentation of service. In its publicly available reports rendered to other clients in prior engagements, and in a published scholarly writing, Marco’s consultant Fitch & Associates has consistently embraced the general rule that regionalized EMS service delivery is preferable to 11.A.4 Packet Pg. 411 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 7 fragmentation of service. Here are some excerpts from Fitch’s other published reports to demonstrate that point: a) The Pinellas County Engagement In 2013 the Fitch consultancy was hired by the Pinellas County Commissioners to examine proposals from municipal fire departments to fragment EMS service. EMS was then being provided by the County in a partnership with Sunstar. The current system was largely unitary, regional and fully-integrated. In rejecting the fire department’s proposals, Fitch stated, at page 82 of its report, “Fragmentation on any level incurs inefficiencies and resulting higher cost.” On page 117 of its Pinellas report, Fitch went on to state “[A] shift from system administration and management by Pinellas County Department of Public Safety Services (single agency) to a multi-agency structure coordinated under a single interlocal provider agreement introduces several systems management challenges. These challenges affect three critical functions – Governance and Policy, Operational Accountability [and] Logistical Support” On page 119, Fitch brought forth its conclusion to the Pinellas County Commission, rejecting the fragmentation proposals, and stating: “Fitch concludes that the assumptions and generalized conclusions [advanced by the advocates of fragmentation] lack the analysis needed to clearly substantiate the conclusions and assumptions, especially as they are related to cost. The budget exhibits attached to the [fragmentation] proposal assumes that these functions can be added/maintained either at a [sic] reduced or at current funding levels” b) Contra Costa County California EMS Modernization Project Report (2012) On page 60 of its report to Contra Costa County, Fitch states approvingly “The Institute of Medicine (IOM) of the National Academy of Science has concluded that the fragmentation of the delivery of healthcare services frequently results in suboptimal treatment, safety concerns, and inefficient use of healthcare resources.” c) The Article in InFocus In November 2015, Mr. Fitch authored a scholarly article in the publication “InFocus,” entitled “The New EMS Imperative: Demonstrating Value.” Presumably, he was not being paid as an advocate, but instead expressing his professional opinion. On page 10 of that publication, he states: “Regionalization. Adopting a regional approach has the potential to significantly improve the cost effectiveness of EMS systems. Currently, a high level of fragmentation exists which often results in poor coordination between EMS agencies. . . . Local governments should increase the level of regionalization of EMS delivery wherever possible.” d) Minihaha County, South Dakota Engagement In March of 2017, Fitch’s written report to the Minihaha County South Dakota Board of County Commissioners championed unitary service delivery at the county level, emphasizing among other things the importance of having one, county-wide, 11.A.4 Packet Pg. 412 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 8 medical director. On page 50, in Fitch recommendation #24, it advocated for “fortifying the county’s role” in the provision of EMS. Fitch even drafted a proposed county ordinance. Page 7 of that draft ordinance included this provision: “No person shall operate an EMS or Ambulance transporting or caring for patients from within the County . . . unless the operator of such service shall have first obtained a License from the County.” 13. At the EMA Hearing May 1, Fitch was given an opportunity to respond to or comment upon the public positions it has previously taken on fragmentation. The Fitch representative affirmed the general rules favoring regionalization over fragmentation but said that each case must be analyzed separately. In response to a question from the Authority, the Fitch representative expressed his opinion that fragmentation has worked well in Broward County. However, the Fitch Report to Broward (Dec 2016) assessed very approvingly Broward’s unified and fully integrated regional 911 dispatching system. 14. Despite much expert evidence to the contrary that is publicly available (including its own prior pronouncements), Fitch & Associates is now advancing an EMS system for Collier County that would result in fragmentation of a currently well-functioning, fully integrated regional EMS service delivery system. The chances of failure of a fragmented system, common sense tells us, is even greater for a small city like Marco, that is located remotely and distantly on an island that is frequently the first target of hurricaines and which has no hospital whatsoever on it. No matter whether Marco has one, two or three first line ambulances on-island, they can never achieve any reliable degree of self-sufficiency. Also, their home-based medic units will have to spend many hours off-island transporting patients to distant hospitals. 15. Marco’s representatives have repeatedly acknowledged on the record that if the State issues the requested license, the City would need an interlocal agreement with the County in order to protect Marco citizens whenever immediate demand for EMS services on the Island exceeds local supply of resources. We agree. That need would be a real and substantial one. 16. The EMS services provided by the County to the taxpayers of Marco Island under the current automatic mutual aid, closest unit response, move-up, zone coverage, air-medical and communications system protocols, among other services, provide a real and substantial benefit to the residents, patients and taxpayers of Marco Island. As noted above, Marco’s insular and distant location, lack of any hospital on the island, historically fewer outgoing than incoming mutual aid responses, and other circumstances, make the benefits that Marco’s residents, patients and taxpayers receive from off-island based services greater than what the County’s mainland residents, patients and taxpayers receive from on-island based services, and that difference is, itself, a real and substantial benefit to Marco’s patients, residents and taxpayers. To prove the point: If Marco Island did not exist, the rest of the County could provide for its own EMS needs. By contrast, if the rest of the County did not exist, the Island could not. 17. In conjunction with the City’s use of off-island based EMS resources, the EMA also analyzed Marco’s use of the County Sheriff’s Office resources, as Marco has its own separate police force. Marco Island’s taxpayers do not receive any reduction 11.A.4 Packet Pg. 413 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 9 of the portion of their County ad valorem taxes that support the County Sheriff on account of their decision to localize law enforcement. It is submitted that the City’s need for County law enforcement backup is occasional at best, and considerably less often than its need for off-island EMS backup. 18. On page five of the Fitch Report, which as previously noted is the main analytical part of Marco’s application, the consultant states that Marco Island may wish to seek reduction or possibly elimination of the portion of County ad valorem taxes collected for provision of EMS services, citing the case of Alsdorf v. Broward County, 373 So. 2d 695 (1979), decided by a district court of appeals having jurisdiction over another part of the State. At the EMA hearing, the Marco City Council Chairman stated there has been no discussion of that possibility at the Council level, and none is planned or contemplated at present. 19. If the City is successful in securing a favorable vote from its citizens on August 28, and if the Collier County BCC flatly denies Marco’s application as the Minority Report advocates, presumably the State will issue the requested license, quite possibly without adequately protecting the taxpayers, residents and patients of Collier County as a whole. In such event, the County’s only way of protecting its interests and those of its people would be to insist upon inclusion of conditions like the ones listed below in an interlocal agreement with Marco. In the event those negotiations were to break down, costly and delaying litigation, with an uncertain result, could likely follow. Majority and Minority Reports The EMA Minority Report presumably concurs in the above findings, and will doubtless add a detailed evaluation of the extent to which Marco Island also has failed to meet its burden of proving satisfaction of Criteria (2), (3) and (4). We expect to be supportive of those parts of that Report. So where do the EMA Majority and Minority Reports disagree? I believe it is fair to say the Minority will be recommending flat denial of Marco’s application. The Majority on the other hand is recommending BCC approval, subject to very important conditions. The City’s case comprises bald assertions of greater benefit, lower cost, more resources and higher quality for not only Marco Island but, indeed, for the entire County. In most cases, the City representatives have expressed their willingness to bring about these goals. The Majority’s report offers several essential and concrete conditions to the granting of a COPCN, in order to assure those wishful expressions of willingness are actually given full force and effect. The Majority believes Collier County is far better served by its granting a COPCN subject to conditions of its own determination than by denying the COPCN, whereupon if the voters approve in August, the State could very well issue Marco an unconditional license, leaving the County having to protect itself as well as it can in negotiations over the interlocal agreement, and the greater possibility of litigation with Marco down the road. The Conditions The Majority of the Members of the Collier County Emergency Medical Authority offer, and earnestly recommend to the BCC, the following conditions for inclusion in a County-issued COPCN: 11.A.4 Packet Pg. 414 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 10 a. A majority of those qualified electors residing within the City of Marco Island who participate by voting in the referendum on August 28, 2018 shall have voted to approve that the City assume these additional services. (Note: This is the same condition that the State has imposed on Marco.) b. Going forward, the City must deliver EMS services that are in all respects at least of equal quality to those services its patients now receive. In addition, when Marco’s medical responders are providing EMS service off-Island, the same quality standards must be consistently equaled or exceeded. c. Marco Island may engage the services of a licensed and qualified physician to participate in medical direction. Such person may be designated an “Assistant Medical Director of Collier County” by the Medical Director of Collier County, but in any event shall in all professional, medical and training matters be subject to the oversight and supervision of the Collier County Medical Director. d. Marco Island shall remain a full participant in the Collier County dispatch and automatic mutual aid system, including without limitation remaining subject to countywide closest unit dispatch, whether on or off island, coverage for Goodland, and countywide move-up and zone-coverage. e. The City’s assumption of authority for the additional services authorized by this COPCN shall result in no financial detriment to the rest of Collier County, including, without limitation, that City taxpayers shall continue to pay County ad valorem taxes associated with CCEMS services, as they do with respect to law enforcement services the City receives from the County Sheriff’s office. Respectfully Submitted, Edwin S. Fryer Chairman, Collier County Emergency Medical Authority, For the Majority 11.A.4 Packet Pg. 415 Attachment: EMA Majority Report to Collier County Board of County Commissioners Regarding Marco Island Request for ALS Transport 11.A.5Packet Pg. 416Attachment: EMA Minority Report 050918 (5704 : Marco Island Fire and Rescue COPCN) 11.A.5Packet Pg. 417Attachment: EMA Minority Report 050918 (5704 : Marco Island Fire and Rescue COPCN) 11.A.5Packet Pg. 418Attachment: EMA Minority Report 050918 (5704 : Marco Island Fire and Rescue COPCN) 11.A.5Packet Pg. 419Attachment: EMA Minority Report 050918 (5704 : Marco Island Fire and Rescue COPCN) Confidential Draft Marco Island, FL Page 1 © FITCH & Associates COPCN Summary Report June 2016 December 2017 Revised: April 2018 Supplemental EMS Report Marco Island, Florida Revised Financial Analysis And Certificate of Public Convenience & Necessity (COPCN) Language Prepared by: FITCH & ASSOCIATES, LLC 2901 Williamsburg Terrace #G § Platte City § Missouri § 64079 816.431.2600 § www.fitchassoc.com 11.A.6 Packet Pg. 420 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page i © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 Supplemental Report Revised April 20, 2018 Marco Island, FL TABLE of CONTENTS EXECUTIVE SUMMARY _________________________________________________________________ 1 INTRODUCTION ______________________________________________________________________ 2 FINANCIAL ANALYSIS __________________________________________________________________ 3 Table 1: Staffing Table Required for Transport EMS ____________________________________ 3 Table 2: Incremental Operating Budget _____________________________________________ 4 Table 3: Anticipated Revenue Required for Incremental Budget __________________________ 5 Table 4: Capital EMS Equipment Needs _____________________________________________ 5 COPCN CRITERIA _____________________________________________________________________ 7 1(a). Public necessity for the service: The extent to which the proposed service is needed to improve the overall emergency medical services (EMS) capabilities of the County. ____________ 7 1(b). Public necessity for the service: The effect of the proposed service on existing services with respect to quality of service and cost of service. ________________________________________ 8 1(c). Public necessity for the service: The effect of the proposed service on the overall cost of EMS service in the county.______________________________________________________________ 8 1(d). Public necessity for the service: The effect of the proposed service on existing hospitals and other health care facilities. _________________________________________________________ 8 1(e). Public necessity for the service: The effect of the proposed service on personnel of existing services and the availability of sufficient qualified personnel in the local area to adequately staff all existing services._______________________________________________________________ 9 2. Applicant’s sufficient knowledge and experience to properly operate the proposed service. ___ 9 3. That, if applicable, there is an adequate revenue base for the proposed service. ____________ 9 4. Proposed service will have sufficient personnel and equipment to adequately cover the proposed service area. ____________________________________________________________________ 9 Appendix Appendix A – 5-Year Operating & Capital Budget Appendix B – Collier County COPCN Ordinance 11.A.6 Packet Pg. 421 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 1 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 EXECUTIVE SUMMARY The City of Marco Island previously engaged Fitch and Associates to undertake an evaluation of EMS services for the City. That project was completed in November 2016. The City re-engaged FITCH to provide additional services in late 2017 assessing the financial impact and COPCN requirements for assumption of full EMS transport services at the paramedic level. This effort was revisited again in early 2018. Working most recently with City staff, from both fire and budget, the following is a supplement to FITCH’s prior report and revises its earlier operational and fiscal analysis in order to achieve a City operated full Advanced Life Support (ALS) transport system. The City is well prepared to migrate to a fire-based ALS transport system. Its strong history in providing paramedic services on the Island would be sufficient by itself. In addition, the Fire Department today operates where its personnel also staff a paramedic transport vehicle that further demonstrates their requisite skill and expertise. The following analysis anticipates the hiring of 12 new fire paramedics along with other organizational changes to strengthen supervision and oversight for a transport-based paramedic system. The City’s assumption of transport provides a new revenue source to offset a significant portion of these costs. In many respects, the City assumption of ALS transport builds upon the long-term services provided jointly by the City’s personnel and those of Collier County EMS. These changes also simultaneously strengthen the overall system. By assuming direct responsibility for all dimensions of paramedic-level service, the City adds greater resources on the Island, allows for local control of an essential public safety service, and allows Collier County to address resource issues elsewhere within their EMS system. 11.A.6 Packet Pg. 422 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 2 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 INTRODUCTION The City of Marco Island engaged Fitch and Associates (FITCH) to evaluate Emergency Medical Services (EMS) on the Island, consider alternative deployment options, and assess fiscal impacts in support of the City pursuing a Certificate of Public Convenience and Necessity (COPCN) from Collier County that will allow the City to transport patients from their community to an appropriate hospital as may be medically necessary for City residents and visitors. The City’s goal is to improve EMS services on the Island and exert greater local control through home rule in a time of greater uncertainty regarding the County’s long-term direction in delivery of EMS. FITCH undertook this evaluation and delivered its initial report in October 2016, with a subsequent presentation to the City Council in November. Since that time, the issue of pursuing a COPCN has been discussed several times by City leaders and senior City staff. FITCH was asked to revisit their earlier assessment and refine both a draft COPCN application and certain cost assumptions under the following scenario: To revise the earlier financial analysis and draft COPCN application for use by City in the assumption of ALS transport services directly by City. Under this approach, the City’s Fire Rescue Department would become an advanced life-support (ALS) transport provider. This model is similar to that used in many other fire-rescue systems across the State and Nation. That work was completed in December 2017. In March/April of 2018 the City again asked for some additional revisions to this financial analysis – based in part on actions of the Florida Legislature. Therefore, this April 2018 revision was completed with significant interaction from the appropriate City departments. The following assessment and revised analyses addresses, first, the estimated financial impact of the City’s total assumption of EMS services. Unlike the earlier report which contemplated a more collaborative and integrated approach, the assumptions herein contemplate the City becomes fully responsible for all aspects of EMS delivery – including transportation, billing, medical direction, etc. The specific tasks undertaken here include: • Revise and expand financial analysis to contemplate the City’s full delivery of ALS transport services from their existing Fire Rescue system. Contemplate a staffed rescue/ambulance at each of the City’s two fire stations, along with a third transport capable squad/ambulance which provides surge capacity. • Revise draft COPCN application to align with the City’s preferred delivery system. 11.A.6 Packet Pg. 423 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 3 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 FINANCIAL ANALYSIS Drawing from our earlier report, and with utilization of more recent budget data, FITCH undertook an analysis that evaluates the incremental difference should the City begin paramedic full- transport services. By utilizing an incremental approach, this will allow key stakeholders to better understand the additional budgetary resources required under this scenario. As was noted previously, the City’s Fire Rescue budget must fund fire protection costs in addition to its role in providing EMS services on the Island. City taxpayers and user support for County EMS is estimated at $2,892,526. This represents ad valorem property tax revenues to the County of $1,940,0991 and ambulance revenues of $952,4272. Presently, the Department has an authorized staffing level of 12 personnel per shift, with a minimum staffing level of nine personnel. This does not include the 2 personnel that Collier County provides each day. In order to fully undertake an EMS transport provider role, the Department would require 16 personnel assigned to each shift. As reflected below, the proposed Department staffing level authorization would rise to 16 personnel per shift. The difference of four more personnel includes the assumption of all EMS duties on the Island being performed by the Department, including the replacement of two positions currently provided by Collier County EMS. These four new personnel, across three shifts, requires an increase of 12 full-time equivalent (FTE) fire personnel. Based on current staffing levels, and adjustments for staffing required for two additional City staffed Medic Rescues, City staff indicated the 4-personnel per shift would not require any additional staffing multiplier for time-off. Table 1: Staffing Table Required for Transport EMS Station 50 Station 51 On- Duty On Leave Medic Rescue 50 Tower 50 BC 50 Squad 50 Engine 51 Medic Rescue 51 3 4 1 3 3 2 16 0 3 4 1 2 3 2 15 1 3 3 1 2 3 2 14 2 2 3 1 2 3 2 13 3 1 Based on FY2015 final tax rolls which reflect the City’s proportion of taxable value is 12.29% of Collier County’s total, and the anticipated General Fund subsidy of $15,786,000. 2 Based on a three-year average (FY2013 thru FY2015) of County reported ambulance revenues from Marco Island 11.A.6 Packet Pg. 424 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 4 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 Recognizing the additional responsibilities that are required of the City under this scenario, there will be a concurrent need for proper supervision and support. The City has already approved a training officer in the FY 2018 budget. Under the budget as reflected here, the new training officer would be assigned the additional responsibilities for EMS oversight. Further, the budget reflected below also provides for a Lieutenant, for each crew at each station, to allow for appropriate supervision and training as required of a full-transport EMS system. These positions would be responsible for a variety of tasks including quality assurance/quality improvement (QA/QI), additional training duties of both incumbent and new personnel, and assisting other staff with a variety of required continuing education and public education programs representative in a well- performing EMS system. The following figures summarize the required first-year resources for the City to undertake a full- transport, paramedic level service provider assumed to start in FY 2019. An expanded 5-year projected budget was developed with assistance and review by the City’s Finance Department and is included as an Appendix to this report. In addition to these incremental costs, the City is expected to generate EMS transport revenue that will offset some of these incremental expenditures. The assumption in Year 1 is that transport revenues will lag 90 days, thereby impacting the first year’s revenues and estimated at 75% of a full fiscal year’s estimate. From earlier estimates, adjustments were made to employee benefits and certain operating costs. As reflected in Tables 2 and 3 below, the net impact on the City’s operating budget in year 1 would be $1,015,452. However, as the full year’s revenue is achieved in Year 2, this impact on the City’s overall budget is reduced accordingly. Table 2: Incremental Operating Budget Annual Costs FY2019 Salaries (Additional Positions Only) $ 632,376 Overtime $ 20,000 Upgrade Training Officer to EMS/Training $ 25,000 Upgrade FF/PM positions to Lieutenant $ 46,971 Benefit Allowance (10% on new salaries) $ 72,472 Holiday Pay (new personnel) $ 20,376 FICA (on increased salaries @ 7.65%) $ 60,985 Health Insurance (assumes new employee & spouse) $ 183,408 175 Pension 44.72% $ 365,450 Personnel Expenses (b) $ 1,427,038 Professional Services - Medical Director $ 50,000 Professional Services - Ambulance Billing $ 50,002 Linen Supplies $ 5,200 Oxygen $ 7,000 Medical Supplies $ 54,000 11.A.6 Packet Pg. 425 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 5 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 Pharmacy Costs $ 15,500 Other Miscellaneous EMS Expenses $ 32,500 Annual Physical $ 6,732 Uniforms $ 7,344 Fuel $ 7,000 Ambulance Maintenance $ 17,000 Contingency (20% 1st year & 10% 2nd year) $ 50,456 Recurring Operating Expenses (b)(c) $ 302,734 Total Annual Budget Impact $ 1,729,772 While we assume the City will need to subsidize the impact from assumption of transport services, it is also recommended that legal counsel for the City review issues of dual taxation as litigated elsewhere3 to evaluate any potential opportunities for the City to mitigate, at least partially, the fiscal impact from full assumption of EMS services. Table 3: Anticipated Revenue Required for Incremental Budget Revenues FY2019 Transport Revenues (a) $ 714,320 Total Revenues $ 714,320 As a new paramedic-level transport agency, the Department will also need to ensure they have the appropriate capital equipment for service delivery. The figure below indicates the required equipment and estimated capital cost. City staff expressed a preference to lease purchase the ambulances, assuming two in the first year and the addition of a third unit for backup and special events in the third year. In addition, City staff have indicated that the existing squad would be permitted as a transport ambulance and be available with existing staff to function as an additional transport ambulance during surge conditions. Such deployment would not significantly diminish current operational capacity for fire protection. As with the operating budget, an expanded 5-year capital plan is reflected in the Appendix. Thereafter, it is recommended the City establish a replacement fund with annual contributions towards replacement of EMS related capital equipment. This process is considered a best practice for EMS agencies and ensures critical equipment is replaced in a timely manner. Table 4: Capital EMS Equipment Needs Capital Costs FY2019 Auto Vent $ 6,498 Battery Support System for LP-15 $ 3,276 Stryker Stretchers w/ PowerLoad $ 108,612 3 For example, see Alsdorf v. Broward County 373 So.2d 695 (Fla. Dist. Ct. App. 1979). 11.A.6 Packet Pg. 426 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 6 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 LP-15 $ 65,976 Stair Chairs $ 3,300 PPE $ 42,840 Radios; Computers; Technology for Ambulances $ 36,700 EMS Records System $ 30,000 Ambulance Lease Purchase (2 units first 2 yrs. / 3 units years 3-5 / 4.25% APR) $ 89,831 Total Capital (b)(c) $ 387,033 11.A.6 Packet Pg. 427 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 7 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 COPCN CRITERIA Collier County’s Code of Ordinances establishes uniform countywide standards for certification of ambulance or advanced life support services. These can be found in their entirety in Attachment A. The following section takes the earlier findings and recommendations and formats them to address each of the specific requirements4 for the Board of County Commissioners to consider the application for the COPCN certificate. The following represents the required revisions to address paramedic level full transport services by the City’s Fire Rescue Department. The specific procedure for obtaining a COPCN is outlined in County Code, specifically Section 50.55. The following language addresses the requirements the Board of County Commission must consider in granting a COPCN under Section 50-57. FITCH remains available to the City during the application process. 1(a). Public necessity for the service: The extent to which the proposed service is needed to improve the overall emergency medical services (EMS) capabilities of the County. Approval of the City’s COPCN application will improve the overall capabilities of EMS for the County through a number of mechanisms. First, for Marco Island residents and visitors the total amount of EMS services available on the Island will increase through the addition of an additional full-time ALS transport vehicle. The proposed deployment will provide two 24/7/365 units on the Island, funded and operated by the City of Marco Island, along with a staffed 3rd transport capable unit required during surge conditions. Compared to the current 1.2 full-time equivalents, these three units represent a 150% improvement in deployed resources for Marco Island. Second, this COPCN fully relieves the Collier County EMS (CCEMS) from funding or staffing the current fulltime and peak season/peak hour units on Marco Island. Noting that CCEMS presently staffs 24 full-time EMS units off the Island, the release of the equivalent of 1.2 units provides an increased deployment of 5% additional resources off the Island. Finally, the deployment of City staffed units on the Island will almost eliminate, and considering the 3rd staffed surge unit, eliminate the number of times resources from off the Island (e.g. R90, R23, etc.) will be required to relocate and/or respond to Marco Island incidents except during an extraordinary incident. This increased capacity for R90 and R23 specifically is expected to improve their current response time performance which currently do not meet the County’s stated target performance.5 This COPCN adds resources to the existing system and therefore improves overall EMS capabilities in the County. 4 Collier County Code of Ordinances, Section 50-57 Requirement for board approval in granting certificate. 5 Collier County 2017 Annual Update and Inventory Report on Public Facilities. 11.A.6 Packet Pg. 428 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 8 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 1(b). Public necessity for the service: The effect of the proposed service on existing services with respect to quality of service and cost of service. The proposed deployment and operation of an ALS transport units by Marco Island Fire Rescue improved overall EMS capabilities within Collier County, as outlined above. The cost of service, as proposed herein, actually assists County taxpayers by allowing redeployment of existing resources to other areas of the County where need exists. Marco Island City Commissioners, as evidenced by this application, have made a local decision to seek a higher level of EMS capabilities for the Island, funded by city funds. This decision will not adversely impact county taxpayers. Any impact on Marco Island residents and business owners for this enhanced level of service will be addressed through the local government’s existing budget process. By permitting the City to deploy and staff their own units, Marco Island Fire Rescue will also have an increased ability to implement and/or enhance community paramedic programs along with outreach to senior citizens, children and businesses on the Island. 1(c). Public necessity for the service: The effect of the proposed service on the overall cost of EMS service in the county. The cost of service, as proposed herein, does not adve rsely impact County taxpayers. At the Board of County Commissioners discretion, there is also a potential for reductions in the County cost for provision of EMS services by reducing the number of EMS units the County currently deploys. This decision will not adversely impact county taxpayers. Any impact on Marco Island residents and business owners for this enhanced capability will be addressed through the local government’s existing budget process. 1(d). Public necessity for the service: The effect of the proposed service on existing hospitals and other health care facilities. The granting of a COPCN for the City of Marco Island will not have any effect on existing hospitals. Demand for 9-1-1 EMS services and transportation are independent of the number of COPCNs in the County. Medical emergencies requiring the activation of 9-1-1, response from paramedics and transport to the closest appropriate hospital will continue exactly as they occur today. The effect on other health care facilities, if any, will be positive. As outlined elsewhere in the City’s COPCN request, the granting of an ALS Transport certificate to the City will increase the overall capacity of EMS within the County. Such increased capacity would only have a positive effect on other health care facilities. 11.A.6 Packet Pg. 429 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 9 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 1(e). Public necessity for the service: The effect of the proposed service on personnel of existing services and the availability of sufficient qualified personnel in the local area to adequately staff all existing services. Upon approval of the COPCN, the City intends to hire the necessary additional personnel to properly staff an additional ALS transport unit. The City’s initial plan is to hire and staff two new Medic Rescue units with two, dual certified firefighter paramedics. In addition, the City will have a staffed transport capable squad which can be deployed during periods of any surge activity. There is no impact anticipated on personnel of existing EMS services. There is also no significant impact anticipated on the availability of qualified personnel in the County and surrounding areas. Compared to the total number of existing personnel in the County, and those undergoing training at regional fire and EMS institutions, the City’s future personnel needs are minimal compared to the current and future applicant pool. 2. Applicant’s sufficient knowledge and experience to properly operate the proposed service. Marco Island Fire Rescue and CCEMS have enjoyed an existing and strong relationship in the delivery of paramedic level services. The Marco Island personnel presently co-staff emergency response vehicles, share common medical direction, training and treatment protocols. City personnel meet or exceed the Medical Director’s patient transport contact hour requirements. In that Marco Island personnel already staff transport capable ambulances with CCEMS, the City has demonstrated the requisite knowledge and experience to operate an ALS ambulance. This shared staffing program has been in place since 2002 and reflect the County’s own assessment of the applicant’s capabilities. 3. That, if applicable, there is an adequate revenue base for the proposed service. Marco Island is a local government properly incorporated under the laws of the State of Florida. The City has the capability to adequately raise the revenue necessary to operate the expanded level of service proposed under this application. 4. Proposed service will have sufficient personnel and equipment to adequately cover the proposed service area. Marco Island Fire Rescue currently has 36 personnel assigned to operational shifts. Of the current personnel, 100% are certified as Florida’s EMS providers, with 74% of those certified as paramedics. The City will hire personnel as required to provide the additional staffing for new transport units. 11.A.6 Packet Pg. 430 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Marco Island, FL Page 10 © Fitch & Associates Revised COPCN and Financial Report Revised April 20, 2018 Appendix A 5-Year Operating & Capital Budget 11.A.6 Packet Pg. 431 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix A – 5-Year Operating & Capital Budget (Revised April 20, 2018) Marco Island, FL Page 1 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 Marco Island EMS Budget - Incremental Costs from Current Operation Revenues FY2019 FY2020 FY2021 FY2022 FY2023 Transport Revenues (a) $ 714,320 $ 952,427 $ 952,427 $ 952,427 $ 952,427 Total Revenues $ 714,320 $ 952,427 $ 952,427 $ 952,427 $ 952,427 11.A.6 Packet Pg. 432 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix A – 5-Year Operating & Capital Budget (Revised April 20, 2018) Marco Island, FL Page 2 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 Annual Costs Unit Cost Qty FY2019 FY2020 FY2021 FY2022 FY2023 Salaries (Additional Positions Only) $ 52,698 12 $ 632,376 $ 651,347 $ 670,888 $ 691,014 $ 711,745 Overtime $ 20,000 - $ 20,000 $ 20,600 $ 21,218 $ 21,855 $ 22,510 Upgrade Training Officer to EMS/Training $ 25,000 1 $ 25,000 $ 25,750 $ 26,523 $ 27,318 $ 28,138 Upgrade FF/PM positions to Lieutenant $ 5,219 9 $ 46,971 $ 48,380 $ 49,832 $ 51,326 $ 52,866 Benefit Allowance (10% on new salaries) - - $ 72,472 $ 74,646 $ 76,886 $ 79,192 $ 81,568 Holiday Pay (new personnel) $ 1,698 12 $ 20,376 $ 20,987 $ 21,617 $ 22,265 $ 22,933 FICA (on increased salaries @ 7.65%) - - $ 60,985 $ 62,815 $ 64,699 $ 66,640 $ 68,639 Health Insurance (assumes new employee & spouse) $ 15,284 12 $ 183,408 $ 201,749 $ 221,924 $ 244,116 $ 268,528 175 Pension 44.72% - - $ 365,450 $ 376,413 $ 387,706 $ 399,337 $ 411,317 Personnel Expenses (b) $ 1,427,038 $ 1,482,687 $ 1,541,291 $ 1,603,064 $ 1,668,244 Professional Services - Medical Director - - $ 50,000 $ 51,500 $ 53,045 $ 54,636 $ 56,275 Professional Services - Ambulance Billing - - $ 50,002 $ 66,670 $ 66,670 $ 66,670 $ 66,670 Linen Supplies - - $ 5,200 $ 5,460 $ 5,733 $ 6,020 $ 6,321 Oxygen - - $ 7,000 $ 7,350 $ 7,718 $ 8,103 $ 8,509 Medical Supplies - - $ 54,000 $ 56,700 $ 59,535 $ 62,512 $ 65,637 Pharmacy Costs - - $ 15,500 $ 16,275 $ 17,089 $ 17,943 $ 18,840 Other Miscellaneous EMS Expenses - - $ 32,500 $ 34,125 $ 35,831 $ 37,623 $ 39,504 Annual Physical $ 561 12 $ 6,732 $ 6,934 $ 7,142 $ 7,356 $ 7,577 Uniforms $ 612 12 $ 7,344 $ 7,564 $ 7,791 $ 8,025 $ 8,266 Fuel - - $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 Ambulance Maintenance - - $ 17,000 $ 17,000 $ 25,500 $ 25,500 $ 25,500 Contingency (20% 1st year & 10% 2nd year) $ 50,456 $ 27,658 $ - $ - $ - Recurring Operating Expenses (b)(c) $ 302,734 $ 304,236 $ 293,054 $ 301,388 $ 310,099 Total Annual Budget Impact $ 1,729,772 $ 1,786,923 $ 1,834,345 $ 1,904,452 $ 1,978,343 11.A.6 Packet Pg. 433 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix A – 5-Year Operating & Capital Budget (Revised April 20, 2018) Marco Island, FL Page 3 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 Capital Costs Unit Cost Qty FY2019 FY2020 FY2021 FY2022 FY2023 Auto Vent $ 3,249 2 $ 6,498 $ 3,249 Battery Support System for LP-15 $ 1,638 2 $ 3,276 $ 1,638 Stryker Stretchers w/ PowerLoad $ 36,204 3 $ 108,612 $ 36,204 LP-15 $ 32,988 2 $ 65,976 $ 32,988 Stair Chairs $ 1,650 2 $ 3,300 $ 1,650 PPE $ 3,570 12 $ 42,840 $ 10,710 Radios; Computers; Technology for Ambulances $ 18,350 2 $ 36,700 $ 18,350 EMS Records System $ 30,000 Ambulance $ 202,000 Lease Purchase (2 units first 2 yrs. / 3 units years 3-5 / 4.25% APR) $ 89,831 $ 89,831 $ 134,747 $ 134,747 $ 134,747 Total Capital (b)(c) $ 387,033 $ 89,831 $ 239,536 $ 134,747 $ 134,747 NOTES: (a) First year revenues adjusted to 75% of Collier County transport revenues assuming transport beginning October 1st (fiscal year) and receivables running at 90-days. (b) Personnel costs, operating and capital expenses reviewed or provided by Marco Island budget personnel (c) Operating costs based on experiences from other EMS providers in Florida and New Jersey 11.A.6 Packet Pg. 434 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 0 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 Appendix B Collier County COPCN Ordinance Ambulance Benchmark Summary 11.A.6 Packet Pg. 435 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 1 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 Collier County COPCN Ordinance Collier County, Florida - Code of Ordinances Part 1 - Code Chapter 50 - Emergency Services Article III - Medical Transportation Services (as codified in MuniCode as of June 22, 2016) 11.A.6 Packet Pg. 436 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 2 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 ARTICLE III. - MEDICAL TRANSPORTATION SERVICES[3] Footnotes: --- (3) --- Editor's note—Ord. No. 04-12, § 26, adopted Feb. 24, 2004, repealed divs. 1 and 2 of art. III, §§ 50-51—50-68, 50-76—50-86, in their entirety. Sections 1—25 of said ordinance enacted similar provisions to read as herein set out. Cross reference— Businesses, ch. 22; health and sanitation, ch. 66. State Law reference— Medical transportation services, F.S. § 401.2101 et seq. Sec. 50-51. - Purpose. This article is adopted pursuant to F.S. chs. 125 and 401. The purpose of this article is to provide better protection for the health, safety and welfare of the residents of Collier County, in ambulance and ALS matters, by establishing uniform county-wide standards for certification of ambulance or advanced life support or services, or operations by promulgating complete and clear rules and regulations for operation of all ambulance or rescue companies or services in Collier County. (Ord. No. 04-12, § 1) Sec. 50-52. - Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Administrator shall mean the County Manager or his designee. Advanced Life Support (ALS) shall mean procedures conducted as defined in applicable Florida Statutes and Florida Administrative Code, and the Collier County Medical Director's protocol. Ambulance means any privately or publicly owned land, air, or water vehicle that is designed, constructed, reconstructed, maintained, equipped or operated, and is used for or intended to be used for air, land, or water transportation of persons, who are sick, injured, or otherwise helpless. Board shall mean the Collier County Board of County Commissioners. Certificate means a certificate of public convenience and necessity as authorized in F.S. § 401.25(2)(d). Emergency Call shall mean the transit of an ambulance under conditions which warrants travel with flashing lights and siren operating. Operator shall mean any person, organization or governmental entity providing ambulance or ALS services. 11.A.6 Packet Pg. 437 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 3 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 Patient shall mean an individual who is ill, sick, injured, wounded, or otherwise incapacitated or helpless. Rescue Service (Non-ALS) shall mean first response treatment of patients but does not include Advanced Life Support (ALS) or transport. Routine Call or Routine Transfer shall mean the transportation of a patient under non- emergency call conditions. (Ord. No. 04-12, § 2; Ord. No. 2011-36, § 1) Sec. 50-53. - Requirements for certificate. It shall be unlawful for any person, firm, agency, or any other entity, including governmental units, to provide an ambulance service or provide advanced life support without first obtaining a certificate therefore from the Board of County Commissioners of Collier County. (Ord. No. 04-12, § 3) Sec. 50-54. - Exemptions and exclusions from certificate requirement. Certificates shall not be required for: (1) Rescue Services (Non-ALS). (2) The use of a non-ambulance for any transport of a patient pursuant to the Good Samaritan Act, F.S. § 768.13. (3) Vehicles rendering ambulance-type services when requested to do so by the Board of County Commissioners or County Manager in the event of a major catastrophe or other such emergency which requires more ambulances than are available in the county. (4) Ambulances based outside the county which pick up a patient in the county and transport him out of the county, or which pick up a patient out of the county and transport him into the county. (5) Vehicles used to transport persons for routine scheduled medical treatments. Vehicles transporting persons who require services en route are not covered by this exemption. (Ord. No. 04-12, § 4; Ord. No. 05-16, § 4; Ord. No. 2011-36, § 2) Sec. 50-55. - Procedure for obtaining certificate. An applicant for a certificate shall provide the Administrator with the following information in order for a request for a certificate to be considered. Each request shall contain: (1) The name, age, and address of the owner of the ambulance or ALS Operator, or if the owner is a corporation, then of the directors of the corporation and of all the stockholders holding more than 25% of the outstanding shares. For governmental units, this information shall be supplied for members of the governing body. (2) The boundaries of the territory desired to be served. 11.A.6 Packet Pg. 438 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 4 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 (3) The number and brief description of the ambulances or other vehicles the applicant will have available. (4) The address of the intended headquarters and any substations. (5) The training and experience of the applicant. (6) The names and addresses of three Collier County residents who will act as references for the applicant. (7) A schedule of rates which the service intends to charge. (8) Such other pertinent information as the administrator may require. (9) An application or renewal fee of $250.00. (Exception Collier County EMS). (10) Financial data including assets and liabilities of the operator. A schedule of all debts encumbering any equipment shall be included. (Ord. No. 04-12, § 5; Ord. No. 2011-36, § 3) Sec. 50-56. - Review of application. The administrator shall review each application and shall investigate the applicant's reputation, competence, financial responsibility, and any other relevant factors. The administrator shall also make an investigation as to the public necessity for an ambulance or ALS operation in the territory requested, and shall then make a report to the board containing his recommendation whether to grant a certificate to the applicant within 60 days of the time the administrator determines the application is complete. (Ord. No. 04-12, § 6) Sec. 50-57. - Requirement for board approval in granting certificate. The Board of County Commissioners shall not grant a certificate unless it shall find, after public hearing and based on competent evidence that each of the following standards has been satisfied: (1) That there is a public necessity for the service. In making such determination, the Board of County Commissioners shall consider, as a minimum, the following factors: a. The extent to which the proposed service is needed to improve the overall emergency medical services (EMS) capabilities of the County. b. The effect of the proposed service on existing services with respect to quality of service and cost of service. c. The effect of the proposed service on the overall cost of EMS service in the county. d. The effect of the proposed service on existing hospitals and other health care facilities. e. The effect of the proposed service on personnel of existing services and the availability of sufficient qualified personnel in the local area to adequately staff all existing services. 11.A.6 Packet Pg. 439 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 5 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 (2) That the applicant has sufficient knowledge and experience to properly operate the proposed service. (3) That, if applicable, there is an adequate revenue base for the proposed service. (4) That the proposed service will have sufficient personnel and equipment to adequately cover the proposed service area. (Ord. No. 04-12, § 7; Ord. No. 2011-36, § 4) Sec. 50-58. - Appointment of hearing officer. In making the determinations provided for in section 50-57 above, the board may, in its sole discretion, appoint a hearing officer to hold a public hearing and to make factual findings and conclusions as a result of the hearing. Should a Hearing Officer be appointed, said hearing officer shall render a written report to the board within 30 days of the hearing, which report shall contain the officer's findings and conclusions of fact, and a recommended order. The findings and conclusions of fact shall be binding upon the board, but the recommended order shall be advisory only. (Ord. No. 04-12, § 8) Sec. 50-59. - Rights and duties granted by certificate. (a) The certificate granted by the Board shall be valid for one calendar year and shall be personal to the applicant and not transferable. In the case of a corporation, if there occurs such a transfer of stock or other incidents of ownership as to change the majority or largest stockholder, a new certificate must be applied for. Changes in the officers of the corporation will not require a new certificate. (b) Acceptance of the certificate by the applicant shall obligate the applicant to: (1) Service the entire zone granted to the applicant. (2) Provide coverage to adjoining zones, if available, when requested to do so by emergency dispatch for emergency calls when the certificate holder for that zone is unable to respond. (3) Keep posted at his place of business a copy of the fee schedule, which must be filed with the Administrator (if applicable). (4) Operate in accordance with the rules and regulations adopted pursuant to this Ordinance and any applicable County Ordinances, and F.S. ch. 401, and any administrative regulations adopted pursuant thereto. (5) Employ at all times sufficient personnel experienced in operation and management of emergency medical services to ensure proper and efficient operation. (Ord. No. 04-12, § 9; Ord. No. 2011-36, § 5) Sec. 50-60. - Renewal of certificate. Each certificate holder shall file within 90 days of expiration, an application for renewal of his certificate. Renewals shall be based upon the same standards, as the granting of the original 11.A.6 Packet Pg. 440 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 6 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 certificate along with such other factors as may be relevant. The renewal application shall be accompanied by a $250.00 renewal fee. The renewal certificate may be approved routinely by the board, upon advice of the administrator, or the board may hold a hearing on same. (Ord. No. 04-12, § 10) Sec. 50-61. - Emergency provisions. The Board may modify, suspend or revoke a certificate in the interest of the public health, safety and welfare, only at public hearing and after reasonable notice has been given to the certificate holder affected. However, if a situation exists which poses a serious threat that the Operator will not be available to any certain area of Collier County, the Administrator shall have such temporary emergency powers as are necessary to provide that service. These temporary powers are intended to provide interim protection until such time as the Board meets to resolve the emergency. (Ord. No. 04-12, § 11; Ord. No. 2011-36, § 6) Sec. 50-62. - Classifications of certificates. There shall be three (3) classifications of service in Collier County, as follows: (1) Class 1: ALS Transport: ALS Rescue: An EMS Operator with the capability of rendering on the scene prehospital ALS services with transport capability and who may or may not elect to transport patients based on medical necessity. An EMS Operator rendering this level of service for a governmental entity shall be deemed to be operating under the Class 1 - ALS rescue certificate of public convenience and necessity held by the governmental entity. An EMS Operator holding a Class 1 — ALS rescue certificate may provide post-hospital interfacility medical transfer services and routine ALS and BLS calls within the County. A certificate of public convenience and necessity must be obtained from the County before engaging in this level of medical service. (2) Class 2: Collier County Inter-Facility Transport Services: ALS Transfer: An EMS Operator who provides post-hospital inter-facility medical transfer services, both within and outside the County. If requested by the appropriate Class 1 - ALS Rescue Operator, will provide emergency pre-hospital backup service. ALS transfer certificate holders may provide post-hospital medical transfer services for routine and emergency ALS and BLS patients. Class-2 transfer certificate holders must either provide for their own medical director or contract with the County Medical Director, and will operate under protocols approved by the County Medical Director. If the Operator provides for its own medical director, that medical director shall work cooperatively with the County's Office of the Medical Director to ensure continuity of care. Class 2 Operators shall comply with all guidelines and policies approved by the Board of County Commissioners, and shall notify and work with all hospitals and facilities to educate them as to the services Operator provides. The County reserves the right to review and evaluate all calls made by the Operator to ensure that the appropriate level of 11.A.6 Packet Pg. 441 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 7 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 personnel, supplies, equipment and vehicles are being utilized, as set forth in Florida Statute and Florida Administrative Code. (3) Class 3: ALS Non-Transport: a. ALS Non-Transport: An EMS Operator who renders Advanced Life Support pre- hospital services without transport capability. b. Class 3 certificate holders work in concert with applicable Class 1 providers to assure adequate and timely response to prehospital incidents with the intent to either reduce applicable response times or otherwise augment the level of services as requested by the associated Class 1 Operator. Unless an EMS Operator possesses a Class 1 — ALS Rescue certificate issued by the County, a certificate of public convenience and necessity must be obtained from the County before engaging in this level of medical service. c. Class-3 certificate holders shall contract with the County for a negotiated amount per year for administrative services offered by the Office of the Medical Director for the creation and update of medical protocol; and other general support as requested by the Class-3 certificate holder. The Office of the Medical Director shall not be considered the medical director for a Class-3 Operator for purposes of this Ordinance or Florida Statutes unless the Class-3 Operator separately contracts with the County in order for the County's Medical Director to serve as its medical director for the performance of services set forth in F.S. § 401.265, and Chapter 64J-2.004(4)(a), Florida Administrative Code. d. The medical director for the Class-3 certificate holder shall work cooperatively with the County's Office of the Medical Director to ensure continuity of care. The medical director for the Class-3 certificate holder shall not delegate or relinquish any responsibilities identified in F.S. § 401.265, and associated Florida Administrative Code rules. (Ord. No. 04-12, § 12; Ord. No. 2011-36, § 7; Ord. No. 2012-04, § 1) Sec. 50-63. - Transfer or assignment of certificates. No certificate issued under this article shall be assignable or transferable by the person to whom issued except unless approval is obtained from the board in the same manner and subject to the same application, investigation, fees and public hearing as original applications for certificates. Any majority transfer of shares or stock or interest of any person or operator so as to cause a change in the directors, officers, majority stockholders or managers of such person or operator shall be deemed a transfer or assignment as contemplated in this article and subject to the same rules and regulations as any other transfer or assignment. (Ord. No. 04-12, § 13) Sec. 50-64. - Revocation, alteration or suspension grounds. (a) Every certificate issued under this article shall be subject to revocation, alteration and/or suspension of operation, buy [by] the board, for a period of up to one year, where it shall appear that: 11.A.6 Packet Pg. 442 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 8 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 (1) The operator has failed or neglected for a period of 30 days during any calendar year to render all services authorized by his certificate. (2) The operator has been convicted of a felony or any criminal offense involving moral turpitude. (3) The certificate was obtained by an application in which any material fact was omitted or falsely stated. (4) The operator has knowingly permitted any of its motor vehicles to be operated in violation the laws which result in conviction of the driver or operator of a misdemeanor in the second degree or greater, or has knowingly permitted a driver with more than two previous convictions to operate emergency vehicles. (5) The operator has failed to comply with any of the provisions of this article. (6) The public interest will best be served by revocation, alteration, or suspension of any certificate upon good cause shown. (7) The operator or his agent has demanded money or compensation other that established and prescribed under this article (if applicable). (8) The operator has without sufficient justification failed or refused to furnish emergency care and/or transportation promptly for a sick or injured person. (9) The operator or his agent has been found guilty of malpractice or willful and wanton misconduct in the operation of its service. (b) All complaints shall be investigated and a report thereon made to the board, together with findings and recommendations, within 15 days. If revocation, suspension or alteration of any certificate appears warranted, the board shall give notice to the operator holding the certificate that the same will be considered at a specific commission meeting, provided the date of such meeting shall not be less than five days from the date of the notice. The board shall thereupon consider the complaint and either revoke, suspend or alter the certificate or dismiss the complaint. (Ord. No. 04-12, § 14) Sec. 50-65. - General operating regulations. All certificate holders, operators, and drivers shall comply with all state statutes and administrative regulations as following regulations: (1) Twenty-four Hour Service. Every certificate holder shall be required to operate sufficient ambulances, or relevant apparatus, as stated on the vehicle permit issued by the State Department of Health, Bureau of Emergency Medical Services and permit issued by the Board, on immediate call at all times. (2) Prompt Service Required. Every call for service shall be answered promptly. Patients shall be appropriately assessed, treated, packaged, loaded and transported by an Operator that is licensed to transport without being subject to unreasonable delays. All calls for emergency assistance requiring over twenty (20) minutes from time of notification to arrival on scene shall be reported to the Administrator with complete documentation of the circumstances, which delayed the response. Those instances where more than three (3) minutes elapse between receipt of an emergency call and 11.A.6 Packet Pg. 443 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 9 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 dispatch of an emergency vehicle shall also be reported to the Administrator with documentation of circumstances. (3) Bed Linens. Every Operator transporting patients shall provide clean and sanitary bed linens for each patient carried which shall be changed as soon as practicable after the discharge of the patient. (4) Daily Log. Every Operator transporting patients shall maintain in a daily log upon which shall be recorded the place or origin, time of call, time of dispatch, time of arrival at scene, time left for hospital, time of arrival at hospital, and charges for each trip made and such other operating and patient information as may be required by Ordinance. Every Operator shall retain and preserve all daily logs for at least two (2) years, and such logs shall be available for inspection by the Administrator. (5) Communications. Each emergency vehicle shall maintain two-way radio communication with the location of primary dispatch from which it operates, as well as any additional communication capabilities required by Ordinance or state law. (6) Vehicles and Equipment. Each Operator's vehicles shall be equipped with the proper medical and emergency equipment as jointly agreed to by the medical director of each licensed provider and the laws of the State of Florida. (7) Certification. a. In addition to the State of Florida Department of Health, Bureau of Emergency Medical Services requirements for certification, each Collier County EMS paramedic, Class-2 Operator's paramedic, and Class-3 Operator that has separately entered into a contract with the County in order for the County's Medical Director to serve as its medical director for the performance of services set forth in F.S. § 401.265, and Chapter 64J-2.004(4)(a), Florida Administrative Code, must be certified by the County Medical Director. Each Collier County EMS paramedic and Class-2 Operator paramedic, that contracts with the County for Medical Director services, must work with a Collier County EMS ambulance for a sufficient length of time pursuant to subsection (8) for the County's Medical Director to properly judge the paramedic's capability. Salaries of other than Collier County EMS paramedics will be paid by the agency seeking the Medical Director Certification. b. All Operators, shall certify its paramedics pursuant to F.S. § 401.265, and Chapter 64J-2.004(4)(a), Florida Administrative Code. c. Class-2 and Class-3 Operators that have separately entered into a contract with the County in order for the County's Medical Director to serve as its medical director for the performance of services set forth in F.S. § 401.265, and Chapter 64J- 2.004(4)(a), Florida Administrative Code, shall be certified pursuant to the terms of such contract. (8) Ride Time Requirement. Each paramedic employed by a Collier County EMS, a Class-1 Operator or Operator that has entered into a contract with the County for Medical Director services must work, at a minimum, with a Class-1 Operator's ambulance not less than one full month's work shift annually. Each paramedic employed by a Class-3 Operator that has its own medical director must accompany a patient on the Collier County EMS ALS transport from scene to hospital when the paramedic for such Class- 3 Operator initiates ALS services on a patient prior to Collier County EMS transport 11.A.6 Packet Pg. 444 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 10 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 arrival or if the patient's condition requires that additional level of expertise. Each paramedic employed by a Class-3 Operator that has separately entered into a contract with the County in order for the County's Medical Director to serve as its medical director for the performance of services set forth in F.S. § 401.265, and Chapter 64J- 2.004(4)(a), Florida Administrative Code, shall either work with a Collier County EMS ambulance not less than one full month's work shift annually or must accompany a patient on the Collier County EMS ALS transport from scene to hospital when the paramedic for such Class-3 Operator initiates ALS services on a patient prior to a Collier County EMS transport arrival or if the patient's condition requires that additional level of expertise, as provided for in its contract with the County. (9) Application. Each ambulance or ALS service shall be subject to those rules and regulation as promulgated by Ordinances of the Board for the purpose of carrying out this ordinance. (Ord. No. 04-12, § 15; Ord. No. 2011-36, § 8; Ord. No. 2012-04, § 2) Sec. 50-66. - Place of business. Within 90 days of Certificate issuance, each Operator shall maintain a place of business which shall be entirely within his designated operating zone, at which place he shall provide communication with his vehicles, the Collier County Emergency Medical Services Department, and his place of business, a properly listed telephone for receiving all calls for service and at which place of business he shall keep such business records, training records, vehicles, and daily logs available for inspection or audit by the Administrator. Every Operator shall keep on file with the Administrator and the County Emergency Medical Services Department a business address and telephone number at which the Operator may be reached at all times. This information will be maintained at the Emergency Medical Services Department. (Ord. No. 04-12, § 16, Ord. No. 2012-04, § 3) Sec. 50-67. - Records to be kept. Every operator shall keep accurate records of receipts from operations, operating and other expenses, capital expenditure and such other operating and patient information as may be required by the board. (Ord. No. 04-12, § 17) Sec. 50-68. - Rates. Every operator shall file with the board a schedule of the rates. Such rates shall be filed as a part of each new or renewal application, and a rate schedule shall also be filed when changes in rates are proposed. All such rates shall be subject to review and approval by the board. (Ord. No. 04-12, § 18) Sec. 50-69. - Operator's insurance. Every ambulance operator shall carry bodily injury and property damage insurance with solvent and responsible insurers authorized to transact business in the State of Florida to secure 11.A.6 Packet Pg. 445 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 11 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 payment for any loss or damage resulting from any occurrence arising out of or caused by the operation or use of any of the operator's motor vehicles. Each vehicle shall be insured for the sum of at least $100,000.00 for injuries to or death of any one person arising out of any one accident and the sum of at least $300,000.00 for injuries to or death or more than one person in any one accident and for the sum of at least $50,000.00 for damage to property arising from any one accident. They shall also have malpractice insurance. Every insurance policy or contract for such insurance shall provide for the payment and satisfaction of any financial judgment entered against the operator and present insured or any person driving the insured vehicle. Such insurance shall be obtained and certificates or certified copies of such policies shall be filed with the board. All such insurance policies, certificates thereof or certified copies of such insurance policies shall provide for a 30-day cancellation notice to the board. (Ord. No. 04-12, § 19) Sec. 50-70. - Conduct of drivers and attendants. All drivers, EMT's and paramedics shall comply with the laws of the State of Florida, in order to meet the requirements set out in this Ordinance and no driver, EMT or paramedic registered hereunder shall: (1) Fail or refuse to promptly transport, if applicable, or attend any sick or injured person after responding to a call. (2) Demand or receive compensation other that established and approved in accordance with this article or fail to give a receipt for moneys received (if applicable). (3) Give or allow rebate, commission, discount or any reduced rate not provided in the established rate (if applicable.) (4) At any time induce or seek to induce any person engaging an ambulance or ALS service to patronize or retain the services of any hospital, convalescent home, mortuary, cemetery, attorney, accident investigator, nurse, medical doctor or other service occupation or profession. (5) At any time release his patient from his care until he is assured that some responsible person is available to receive such patient. (6) At any time use a siren or flashing red light unless on an emergency call. (7) Disobey the lawful orders of the law enforcement officer at the scene of an accident, or other similar such emergency or at a fire scene, the fire officer in charge. (8) Smoke while within the confines of an ambulance. (9) Operate or ride in a vehicle without using seatbelts. (Personnel attending patients are exempt.) (Ord. No. 04-12, § 20; Ord. No. 2011-36, § 9) Sec. 50-71. - Passengers. No person shall be aboard ambulances when engaged in emergency or routine calls except the following: 11.A.6 Packet Pg. 446 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 12 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 (1) Driver, attendants and fire or law enforcement personnel; (2) Patients; (3) Relatives or close friends of the patient when authorized by an EMS Battalion Chief or position of a higher rank. These requests will only be granted under exceptional circumstances; (4) Physicians and nurses; (5) Personnel in an observing capacity that are being trained for ambulance or ALS service; or (6) Operator's supervisory personnel. (Ord. No. 04-12, § 21; Ord. No. 2011-36, § 10) Sec. 50-72. - Obedience to traffic laws, ordinances or regulations. (a) Under the provisions of Florida State law, the driver of an ambulance or ALS vehicle when responding to an emergency call or while transporting a patient may exercise the following privileges when such driver has reasonable grounds to believe that an emergency in fact exists requiring the exercise of such privileges: (1) Park or stand, irrespective of the otherwise applicable provisions of law, ordinance or regulations. (2) Proceed past a red light or stop signal or stop sign, but only after slowing down as may be necessary for safe operations. (3) Exceed the maximum speed limits permitted by law so long as he does not endanger life or property. (4) Disregard laws, ordinances or regulations governing direction or movement or turning in specified directions so long as he does not endanger life or property. (b) The exemptions herein granted shall apply only when such vehicle is making use of audible and/or visible signals meeting the requirements of this article. (c) The foregoing provisions shall not relieve the driver of a vehicle from the duty to drive with due regard for the safety of all persons, nor shall such provisions protect the driver from the consequences of his reckless disregard for the safety of others. (Ord. No. 04-12, § 22; Ord. No. 2011-36, § 11) Sec. 50-73. - Violations. In addition to the remedies provided herein, a violation of any provision of this article shall be punishable as provided by law for the violation of county ordinances. (Ord. No. 04-12, § 23) Sec. 50-74. - Uniformity of application. The article shall constitute a uniform law applicable in all of Collier County. (Ord. No. 04-12, § 24) 11.A.6 Packet Pg. 447 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 13 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 Sec. 50-75. - Authority to enforce. It is hereby declared to be the duty of the Board of County Commissioners of Collier County, its officers, agents, employees and other governmental agencies, the sheriff's department of Collier County, its deputies and agents, fire departments, as well as the police departments of the various municipalities falling under the provisions of this article to strictly enforce the provisions of this article. (Ord. No. 04-12, § 25) Secs. 50-76—50-100. - Reserved. 11.A.6 Packet Pg. 448 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) Appendix B – Collier County COPCN Ordinance Marco Island, FL Page 14 © Fitch & Associates Revised COPCN and Financial Report December 16, 2017 11.A.6 Packet Pg. 449 Attachment: Marco Fitch Supplemental April 2018 (5704 : Marco Island Fire and Rescue COPCN) COMMITTEE/SUBCOMMITTEE AMENDMENT Bill No. HB 1395 (2018) Amendment No. 178333 - HB 1395 GAC amendment.docx Published On: 2/21/2018 2:18:13 PM Page 1 of 3 COMMITTEE/SUBCOMMITTEE ACTION ADOPTED (Y/N) ADOPTED AS AMENDED (Y/N) ADOPTED W/O OBJECTION (Y/N) FAILED TO ADOPT (Y/N) WITHDRAWN (Y/N) OTHER Committee/Subcommittee hearing bill: Government Accountability 1 Committee 2 Representative Rommel offered the following: 3 4 Amendment (with title amendment) 5 Remove everything after the enacting clause and insert: 6 Section 1. Notwithstanding s. 401.25(2)(d), Florida 7 Statutes, the City of Marco Island is exempt from the 8 requirement to obtain a certificate of public convenience and 9 necessity from Collier County if all the following prerequisites 10 are met: 11 (1) The City of Marco Island applies to the Collier County 12 Board of County Commissioners for a certificate of public 13 convenience and necessity and the application is unapproved; 14 11.A.7 Packet Pg. 450 Attachment: Marco COPCN Bill 1395 (5704 : Marco Island Fire and Rescue COPCN) COMMITTEE/SUBCOMMITTEE AMENDMENT Bill No. HB 1395 (2018) Amendment No. 178333 - HB 1395 GAC amendment.docx Published On: 2/21/2018 2:18:13 PM Page 2 of 3 (2) A third party financial analysis is prepared of the 15 City's assumption of full emergency medical service transport 16 services at the paramedic level; and 17 (3) A majority of those qualified electors residing within 18 the City of Marco Island who participate by voting in the 19 referendum described in section 3 of this bill vote to approve 20 for the City to assume these additional services. 21 22 If all criteria set forth herein and in s. 401.25(2)(a), (b), 23 and (c), Florida Statutes, are met, the Department of Health may 24 issue a license to the City of Marco Island to enable the city's 25 Fire Rescue Department to provide prehospital or interfacility 26 advanced life support services or basic life support 27 transportation services. 28 Section 2. This act does not prevent the Department of 29 Health from enforcing any other provision of chapter 401, 30 Florida Statutes, in connection with the application or grant of 31 a license to the City of Marco Island to provide emergency 32 medical transportation services as described in section 1. 33 Section 3. This act shall take effect upon its approval by 34 a majority vote of those qualified electors residing within the 35 City of Marco Island voting in a referendum to be held in 36 conjunction with a primary election to be held in the City of 37 Marco Island on August 28, 2018, except that this section shall 38 take effect upon becoming a law. 39 11.A.7 Packet Pg. 451 Attachment: Marco COPCN Bill 1395 (5704 : Marco Island Fire and Rescue COPCN) COMMITTEE/SUBCOMMITTEE AMENDMENT Bill No. HB 1395 (2018) Amendment No. 178333 - HB 1395 GAC amendment.docx Published On: 2/21/2018 2:18:13 PM Page 3 of 3 40 ----------------------------------------------------- 41 T I T L E A M E N D M E N T 42 Remove line 6 and insert: 43 emergency medical transportation services upon the City meeting 44 certain criteria; requiring a 45 11.A.7 Packet Pg. 452 Attachment: Marco COPCN Bill 1395 (5704 : Marco Island Fire and Rescue COPCN)