HomeMy Public PortalAbout08282023 CRACC Special Joint Meeting Agenda Packet
CRA/CITY COUNCIL SPECIAL JOINT MEETING
AGENDA
AUGUST 28, 2023
5:00 P.M.
CITY COUNCIL CHAMBERS
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submit questions on any agenda item in advance (by 3:00 p.m. the day of the meeting, please) to cityclerk@cityofcrestview.org.
1. Call to Order
2. Pledge of Allegiance
3. Approve Agenda
4. Action Items
4.1. Presentation by Purvis Gray - Audited Financial Statements
4.2. Discussion/approval of CRA Grant Policy Exception
5. Comments from the Audience
6. Comments from the Mayor and Council
7. Adjournment
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meetings and hearings must advise that a record is required to appeal. Each board, commission, or agency of this state or of any political subdivision
thereof shall include in the notice of any meeting or hearing, if notice of the meeting or hearing is required, of such board, commission, or agency,
conspicuously on such notice, the advice that, if a person decides to appeal any decision made by the board, agency, or commission with respect to any
matter considered at such meeting or hearing, he or she will need a record of the proceedings, and that, for such purpose, he or she may need to ensure
that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. The
requirements of this section do not apply to the notice provided in s. 200.065(3). In accordance with Section 286.26, F.S., persons with disabilities
needing special accommodations, please contact Maryanne Schrader, City Clerk at cityclerk@cityofcrestview.org or 850-628-1560 option 2 within 48
hours of the scheduled meeting.
Page 1 of 138
CITY OF CRESTVIEW Item # 4.1.
Staff Report
CITY COUNCIL MEETING DATE: August 28, 2023
TYPE OF AGENDA ITEM: Presentation
TO: Mayor and City Council
CC: City Manager, City Clerk, Staff and Attorney
FROM: Tim Bolduc, City Manager, Gina Toussaint, Finance Director
DATE: 8/23/2023
SUBJECT: Presentation by Purvis Gray - Audited Financial Statements
BACKGROUND:
Audited Financial Statements are required as governed by Florida State Statutes.
DISCUSSION:
The City's auditing firm, Purvis Gray, will present the results of the September 30, 2022 Audited Financial
Statements for the City of Crestview and the Crestview Redevelopment Agency.
GOALS & OBJECTIVES
This item is consistent with the goals in A New View Strategic Plan 2020 as follows;
Foundational- these are the areas of focus that make up the necessary foundation of a successful local
government.
Financial Sustainability- Achieve long term financial sustainability
Organizational Capacity, Effectiveness & Efficiency- To efficiently & effectively provide the highest quality
of public services
Infrastructure- Satisfy current and future infrastructure needs
Communication- To engage, inform and educate public and staff
Quality of Life- these areas focus on the overall experience when provided by the city.
Community Character- Promote desirable growth with a hometown atmosphere
Safety- Ensure the continuous safety of citizens and visitors
Mobility- Provide safe, efficient and accessible means for mobility
Opportunity- Promote an environment that encourages economic and educational opportunity
Play- Expand recreational and entertainment activities within the City
Community Culture- Develop a specific identity for Crestview
FINANCIAL IMPACT
No financial impact as it relates to the presentation.
RECOMMENDED ACTION
Staff respectfully requests the Board accept the audited financial statements as presented.
Page 2 of 138
Attachments
1. City of Crestview Audit 2022
2. City of Crestview CRA Audit 2022
Page 3 of 138
CITY OF CRESTVIEW Item # 4.1.
Staff Report
CITY COUNCIL MEETING DATE: August 28, 2023
TYPE OF AGENDA ITEM: Presentation
TO: Mayor and City Council
CC: City Manager, City Clerk, Staff and Attorney
FROM: Tim Bolduc, City Manager, Gina Toussaint, Finance Director
DATE: 8/23/2023
SUBJECT: Presentation by Purvis Gray - Audited Financial Statements
BACKGROUND:
Audited Financial Statements are required as governed by Florida State Statutes.
DISCUSSION:
The City's auditing firm, Purvis Gray, will present the results of the September 30, 2022 Audited Financial
Statements for the City of Crestview and the Crestview Redevelopment Agency.
GOALS & OBJECTIVES
This item is consistent with the goals in A New View Strategic Plan 2020 as follows;
Foundational- these are the areas of focus that make up the necessary foundation of a successful local
government.
Financial Sustainability- Achieve long term financial sustainability
Organizational Capacity, Effectiveness & Efficiency- To efficiently & effectively provide the highest quality
of public services
Infrastructure- Satisfy current and future infrastructure needs
Communication- To engage, inform and educate public and staff
Quality of Life- these areas focus on the overall experience when provided by the city.
Community Character- Promote desirable growth with a hometown atmosphere
Safety- Ensure the continuous safety of citizens and visitors
Mobility- Provide safe, efficient and accessible means for mobility
Opportunity- Promote an environment that encourages economic and educational opportunity
Play- Expand recreational and entertainment activities within the City
Community Culture- Develop a specific identity for Crestview
FINANCIAL IMPACT
No financial impact as it relates to the presentation.
RECOMMENDED ACTION
Staff respectfully requests the Board accept the audited financial statements as presented.
Page 4 of 138
Attachments
1. City of Crestview Audit 2022
2. City of Crestview CRA Audit 2022
Page 5 of 138
ORDINANCE:
Page 6 of 138
Page 7 of 138
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITOR’S REPORT
CITY OF CRESTVIEW, FLORIDA
CRESTVIEW, FLORIDA
SEPTEMBER 30, 2022
TABLE OF CONTENTS
Independent Auditor’s Report .................................................................................................................. 1-3
Management’s Discussion and Analysis ................................................................................................. 4-15
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position .................................................................................................................... 16
Statement of Activities .................................................................................................................... 17-18
Fund Financial Statements:
Balance Sheet - Governmental Funds .................................................................................................. 19
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position ........................................................................................... 20
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds............................................................................................... 21
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ...................................................................................................................... 22
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - General Fund .......................................................................... 23
Statement of Net Position - Proprietary Funds ............................................................................... 24-25
Statement of Revenues, Expenses, and Changes in Net Position -
Proprietary Funds .............................................................................................................................. 26
Statement of Cash Flows - Proprietary Funds ................................................................................. 27-28
Statement of Fiduciary Net Position -
Pension Trust Funds .......................................................................................................................... 29
Statement of Changes in Fiduciary Net Position -
Pension Trust Funds .......................................................................................................................... 30
Notes to Basic Financial Statements..................................................................................................... 31-62
Page 8 of 138
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITOR’S REPORT
CITY OF CRESTVIEW, FLORIDA
CRESTVIEW, FLORIDA
SEPTEMBER 30, 2022
TABLE OF CONTENTS
Required Supplementary Information
Schedule of Changes in the Total OPEB Liability and Related Ratios ...................................................... 63
Schedule of Changes in Net Pension Liabilities and
Related Ratios - General Employees’ Retirement Plan ................................................................... 64-65
Schedule of Changes in Net Pension Liabilities and Related Ratios –
Police Officers’ and Firefighters’ Retirement Plan .......................................................................... 66-67
Schedule of Contributions - General Employees’ Retirement Plan .................................................... 68-69
Schedule of Contributions - Police Officers’ and Firefighters’ Retirement Plan ................................ 70-71
Schedule of Investment Returns - General Employees’ Retirement Plan ............................................... 72
Schedule of Investment Returns - Police Officers’ and Firefighters’ Retirement Plan ............................ 73
Combining Financial Statements
Combining Balance Sheet – Non-Major Governmental Funds ................................................................ 74
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances – Non-Major Governmental Funds ............................................................ 75
Combining Statement of Net Position – Non-Major Enterprise Funds ................................................... 76
Combining Statement of Revenues, Expenses, and Changes
in Net Position – Non-Major Enterprise Funds .................................................................................... 77
Combining Statement of Cash Flows – Non-Major Enterprise Funds ..................................................... 78
Compliance Section
Schedule of Expenditures of Federal Awards and State Financial Assistance…………………………………79-80
Notes to the Schedule of Expenditures of Federal and State Financial Assistance…………………………………81
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 ..................................................................................................... 82-84
Independent Auditor’s Report on Compliance for Each Major Federal
Program and Report on Internal Control Over Compliance Required
by the Uniform Guidance ................................................................................................................ 85-87
Schedule of Findings of Questioned Costs................................................................................................88
Management Letter ............................................................................................................................ 89-90
Independent Accountant’s Report on Compliance with Section 218.415,
Florida Statutes .................................................................................................................................... 91
Page 9 of 138
1
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Crestview (the
City) as of and for the year ended September 30, 2022, and the related notes to the financial statements,
which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City as of September 30, 2022, and the respective
changes in financial position, and where applicable, cash flows thereof and the budgetary comparisons
for the General Fund for the year then ended in conformity with accounting principles generally accepted
in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as
a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Page 10 of 138
2
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
INDEPENDENT AUDITOR’S REPORT
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
■ Exercise professional judgment and maintain professional skepticism throughout the audit.
■ Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
■ Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.
■ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
■ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period
of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, and other required supplementary information as listed in the table of contents,
be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the 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
Page 11 of 138
3
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
INDEPENDENT AUDITOR’S REPORT
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.
Supplementary 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 accompanying combining non-major fund financial
statements and other schedules, schedule of expenditures of federal awards and state financial
assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from, and relates directly to, the underlying accounting
and other records used to prepare the basic financial statements. The 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 non-major fund financial
statements and other schedules and state financial assistance, the schedule of expenditures of federal
awards, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2023,
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements, and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control over financial reporting and compliance.
June 22, 2023
Tallahassee, Florida
Page 12 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
4
As management of the City of Crestview, we offer readers of the City of Crestview’s financial statements
this narrative overview and analysis of the financial activities of the City of Crestview for the fiscal year
ended September 30, 2022. We encourage readers to consider the information presented here.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of the City of Crestview exceeded liabilities and deferred inflows
by approximately $75 million (net position) and represents an increase of approximately $9.2
million in net position from the prior year. Of this amount, approximately $45.9 million represents
the net investment in capital assets (e.g., land, infrastructure, building, machinery and
equipment), $5.7 million is restricted for future obligations, and $23.8 million is unrestricted and
may be used to meet the City of Crestview’s ongoing obligations to citizens and creditors.
• The governmental net position increased by approximately $4.2 million from the prior year.
• The net position of the business-type activities of the City of Crestview increased by approximately
$4.9 million from the prior year.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was $19.4
million, or 75% of the total General Fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of Crestview’s basic
financial statements. The City of Crestview’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements - The government-wide financial statements are designed to
provide readers with a broad overview of the City of Crestview’s finances, in a manner similar to a private-
sector business.
The statement of net position presents information on all of the City of Crestview’s assets (and deferred
outflows) and liabilities (and deferred inflows), with the difference reported as net position. The
statement combines and consolidates the governmental fund’s current financial resources (short-term
spendable resources) with capital assets and long-term obligations. Over time, increases or decreases in
net position may serve as a useful indicator of the financial position of the City of Crestview.
The statement of activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flow in future fiscal
periods.
Page 13 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
5
Both of the government-wide financial statements distinguish functions of the City of Crestview that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City of Crestview include general
government (city clerk, city council, mayor, finance, service maintenance, planning, administration,
engineering, facilities, and non-departmental expenses), public safety (police and fire), economic
environment (CDBG), transportation (streets and right-of-way), human services (animal shelter), culture
and recreation (parks and library), and debt service interest. The business-type activities of the City of
Crestview include utilities (water and sewer), sanitation, stormwater, and the recently formed entity
Crestview Unlimited (CV Unlimited), which operates the City of Crestview’s golf course. The government-
wide financial statements are found on pages 16-18 of this report.
Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Crestview, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. All of the funds of the City of Crestview can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
FUNDS
Governmental funds - Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year.
Such information may be useful in evaluating a government’s near-term financial requirements. Found
on pages 19-23 of this report are the basic governmental fund financial statements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide statements. By doing so,
readers may better understand the long-term impact of the government’s near-term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of Crestview maintains seven individual governmental funds (General Fund, Law Enforcement
Trust Fund, Community Redevelopment Fund, Community Development Block Grant Fund, Building and
Permitting Fund, Debt Service Fund, and the Permanent Fund). Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the General Fund, which is considered a major fund. Data from the other
four governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of these non-major governmental funds is provided in the form of combining statements elsewhere
in this report.
Page 14 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
6
The City of Crestview adopts an annual appropriated budget for its General Fund. A budgetary comparison
statement is provided for the General Fund to demonstrate compliance with the budget.
Proprietary funds - All proprietary funds of the City of Crestview are maintained as enterprise funds.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City of Crestview uses enterprise funds to account for its
utilities operations (water operations and distribution and sewer collections and treatment), Stormwater,
Sanitation, and CV Unlimited (Blackwater Golf Club) operations.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The Utilities Fund and Sanitation Fund are both considered major proprietary funds.
Data from the other two enterprise funds (Stormwater and CV Unlimited) are combined into a single,
aggregated presentation. The proprietary fund financial statements are found on pages 24-28 of this
report.
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statements because
the resources of those funds are not available to support the City of Crestview’s own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund
financial statements are found on pages 29-30 of this report.
NOTES TO THE FINANCIAL STATEMENTS
The notes provide additional information, which is essential to the full understanding of the data provided
in the government-wide and fund financial statements. On page 31 of this report is the beginning of the
notes to the financial statements.
OTHER INFORMATION
The combining statements referred to earlier in connection with the non-major governmental funds are
presented immediately following the notes to the financial statements. The combining and individual
fund statements and schedules are found on pages 74-78 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the City of Crestview, assets exceeded liabilities by $75 million (net position) for
the fiscal year ended 2022 as reported in Table 1.
Page 15 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
7
TABLE 1
CITY OF CRESTVIEW, FLORIDA
NET POSITION
AS OF SEPTEMBER 30, 2022 AND 2021
By far the largest portion of the City of Crestview’s net position, approximately $45.9 million (or 61%),
represents the investment in capital assets (e.g., land, infrastructure, building, machinery and equipment).
An additional portion of the City of Crestview’s net position, approximately $5.7 million (or 8%) represents
resources that are subject to external restrictions on how they may be used. The remaining balance of
unrestricted net position, $23.8 million, may be used to meet the government’s ongoing obligations to
citizens and creditors.
The overall increase in the City’s net position was $9.2 million during FY 2022, which is primarily due from
the receipt of capital grants and contributions from ARPA and the State of Florida and some large impact
fees.
Governmental Activities - Governmental activities increased the City of Crestview’s net position by $4.2
million and business-type activities increased the City’s net position by $4.9 million. Reported in Table 2
are the key elements of these changes.
Total assets, excluding capital assets $26,930,075 $23,362,150 $16,507,921 $10,802,751 $43,437,996 $34,164,901
Capital assets, net of depreciation 34,543,335 30,399,718 46,109,213 42,453,594 80,652,548 72,853,312
Total assets 61,473,410 53,761,868 62,617,134 53,256,345 124,090,544 107,018,213
Deferred outflows of resources 7,296,288 3,240,449 1,962,271 1,230,848 9,258,559 4,471,297
Total assets and deferred outflows $68,769,698 $57,002,317 $64,579,405 $54,487,193 $133,349,103 $111,489,510
Total liabilities, excluding long-term
liabilities $3,818,626 $3,009,634 $4,955,610 $4,579,360 $8,774,236 $7,588,994
Long-term liabilities 24,516,823 14,188,161 24,112,662 18,685,234 48,629,485 32,873,395
Total liabilities 28,335,449 17,197,795 29,068,272 23,264,594 57,403,721 40,462,389
Deferred inflows of resources 447,038 4,056,780 50,332 692,691 497,370 4,749,471
Net position:
Net investment in capital assets 20,135,236 17,913,413 25,771,441 23,899,384 45,906,677 41,812,797
Restricted 2,592,634 2,691,908 3,112,541 1,841,497 5,705,175 4,533,405
Unrestricted 17,259,341 15,142,421 6,576,819 4,789,027 23,836,160 19,931,448
Total net position 39,987,211 35,747,742 35,460,801 30,529,908 75,448,012 66,277,650
Total liabilities, deferred inflows
and net position $68,769,698 $57,002,317 $64,579,405 $54,487,193 $133,349,103 $111,489,510
TotalBusiness-Type ActivitiesGovernmental Activities
202120222021202220212022
Page 16 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
8
TABLE 2
CITY OF CRESTVIEW, FLORIDA
CHANGE IN NET POSITION
FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021
Financial Impacts
There are eight basic impacts on revenues and expenses as reflected below:
Revenues
• Economic Condition - This can reflect a declining, stable, or growing economic environment and
has a substantial impact on property, sales, gas, or other tax revenue.
• Council Approved Rate Adjustments - While certain tax rates are set by statute, the City Council
has significant authority to impose and periodically adjust rates (water, wastewater, sanitation,
impact fees, recreation user fees, etc.).
Program revenues:
Charges for services $1,842,913 $1,336,259 $15,564,456 $12,586,031 $17,407,369 $13,922,290
Operating grants and contributions 305,761 226,034 - 28,083 305,761 254,117
Capital grants and contributions 730,553 300,000 2,290,455 - 3,021,008 300,000
General revenues:
Property taxes 9,586,787 8,827,803 - - 9,586,787 8,827,803
Other taxes 6,642,702 6,216,544 - - 6,642,702 6,216,544
Other revenues 9,815,725 8,063,127 1,277 3,728 9,817,002 8,066,855
Total revenues 28,924,441 24,969,767 17,856,188 12,617,842 46,780,629 37,587,609
Expenses:
General government 6,167,465 5,207,463 - - 6,167,465 5,207,463
Public safety 12,868,310 11,026,288 - - 12,868,310 11,026,288
Economic environment 139,742 77,778 - - 139,742 77,778
Transportation 1,983,031 1,775,117 - - 1,983,031 1,775,117
Human services 165,622 - - - 165,622 -
Culture and recreation 2,244,594 1,778,176 - - 2,244,594 1,778,176
Interest on long-term debt 386,489 338,124 - - 386,489 338,124
Utilities fund - - 8,323,951 7,276,115 8,323,951 7,276,115
Sanitation fund - - 4,001,333 3,918,647 4,001,333 3,918,647
Stormwater fund - - 344,904 346,710 344,904 346,710
Crestview Unlimited - - 984,826 - 984,826 -
Total expenses 23,955,253 20,202,946 13,655,014 11,541,472 37,610,267 31,744,418
Increase (decrease) in net assets
before transfers 4,969,188 4,766,821 4,201,174 1,076,370 9,170,362 5,843,191
Transfers (729,719) (479,743) 729,719 479,743 - -
Increase (decrease) in net position $4,239,469 $4,287,078 $4,930,893 $1,556,113 $9,170,362 $5,843,191
Business-Type Activities Total
2022 20212021202220212022
Governmental Activities
Page 17 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
9
• Changing Patterns in Intergovernmental Grant Revenue (both recurring and non-recurring) –
Certain recurring revenues (state revenue sharing and community development grants) may
experience significant changes periodically while non-recurring (or one-time) grants are less
predictable and often distorting in their impact on year-to-year comparisons.
• Market Impacts on Investment Income - The current market conditions have little influence on
the City of Crestview’s investment income since the majority of the City of Crestview’s non-
pension investments consist of certificates of deposit and deposits with the State Board of
Administration.
Expenses
• Introduction of New Programs - Within functional expense categories (police, fire, public works,
community development, parks and recreation, etc.), individual programs may be added or
deleted to meet changing community needs.
• Authorized Position Adjustments - Changes in service demand may cause the City Council to
change authorized staffing. Staffing costs (salary and related benefits) represent approximately
68% of the City of Crestview’s operating costs.
• Salary Adjustments - The ability to attract and retain human and intellectual resources requires
the City of Crestview to strive to approach a competitive salary range position in the marketplace.
• Inflation - While overall inflation appears to be reasonably modest, the City of Crestview is a major
consumer of certain commodities such as paper, chemicals, supplies, fuel, oil, and parts. Some
fluctuations may experience commodity specific increases.
Current Year Impacts - Governmental Activities
• Net position in the governmental activities increased by approximately $4.3 million in the prior
year and increased approximately $4.2 million in the current year. Total revenues in the
governmental activities increased by approximately $4.0 million and expenditures increased
approximately $3.8 million.
• Property taxes increased by approximately $759 thousand (or 8%) due to improving property
values.
• Other revenues, which include state shared revenues, increased by approximately $1.8 million (or
22%) due to improving economic conditions in the City of Crestview and the State of Florida plus
$800 thousand of proceeds from the sale of City of Crestview property.
Page 18 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
10
The following chart compares the program revenues from governmental activities to the related
expenses. Please note that expenses exceed revenues as government seeks to identify the needs of
citizens and then raise resources to meet those needs. The excess of expenses over program revenues is
then funded by the remaining general revenues of the government.
The chart below reflects the percentage of individual revenue sources to total revenue sources for
governmental activities. Charges for services, grants, and contributions are considered program
revenues. Taxes, intergovernmental revenues, interest, and other miscellaneous revenues are considered
general revenues.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
General
Government
Public Safety Economic
Environment
Transportation Human Services Culture and
Recreation
Interest
Chart 1
Expenses and Program Revenue -Governmental Activities
Expenses Program Revenues
6.37%
1.06%
2.53%
33.14%
22.97%
33.94%
Revenues by Source -Governmental Activities
Charges for services Operating grants and contributions
Capital grants and contributions Property taxes
Other taxes Other revenues
Page 19 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
11
Business-Type Activities
The net position from business-type activities increased by approximately $4.9 million.
• Charges for services for business-type activities increased by approximately $2.9 million (or 24%).
This resulted from continued growth in the City of Crestview, additional water and sewer impact
fees collected during the year, and CV Unlimited beginning operations in April of 2022.
• Total operating expenses increased by approximately $2.1 million (or 18%). This resulted from
additional depreciation expense from the expansion of the water and sewer system, increasing
operational costs, and CV Unlimited beginning operations in April of 2022.
The following chart compares the program revenues from the City of Crestview’s business-type activities
to the related expenses for the fiscal year. Business-type activities differ from governmental activities in
that charges for services are designed specifically to recover the cost of providing those services, including
capital costs such as depreciation or debt service.
The following chart shows the composition of revenues from the City of Crestview’s business-type
activities.
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Utilities Sanitation Stormwater Crestview Unlimited
Chart 3
Expenses and Program Revenue -Business-Type Activities
Expenses Revenues
13%
0%
57%
25%
2%3%
Revenues by Source -Business Type Activities
Capital grants and contributions
Other revenues
Utilities
Sanitation
Stormwater
Crestview Unlimited
Page 20 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
12
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City of Crestview uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental Funds - The focus of the City of Crestview’s governmental funds is to provide information
on near-term inflows and balances of spendable resources. Such information is useful in assessing the
City of Crestview’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Crestview’s governmental funds reported combined
ending fund balance of $25.1 million, an increase of $3.4 million in comparison with the prior year.
Approximately 77% of this total amount ($19.4 million) constitutes unassigned fund balance in the
General Fund, which is available for spending at the City Council’s discretion. The remainder of fund
balance is not available for general spending because it is restricted or has already been assigned by the
City of Crestview ($5.7 million).
The General Fund is the chief operating fund of the City of Crestview. At the end of the current fiscal year,
the unassigned fund balance of the General Fund was $19.4 million, while total fund balance reached
$22.9 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned
fund balance and total fund balance to total expenditures. Unassigned fund balance represents 75% of
the total General Fund expenditures, while total fund balance represents 89% of that same amount.
Proprietary Funds - The City of Crestview’s proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
Unrestricted net position of the proprietary funds totaled $6.6 million at the end of the year; of that the
Utilities Fund amounted to $2.8 million, the Sanitation Fund totaled $3.5 million, and the non-major funds
totaled $177 thousand. The net position for this fiscal year in the proprietary funds increased by
approximately $4.9 million. This increase primarily resulted from the Utilities Fund, which recognized
capital grant revenue related to ARPA totaling $2.3 million when the associated costs have been
capitalized and will be depreciated over time. Other factors concerning the finances of proprietary funds
have already been addressed in the discussion of the City of Crestview’s business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, the City of Crestview’s budget was amended to correctly reflect capital lease payments
in the General Fund budget.
Revenues for the year were more than budget by approximately $3.2 million. Expenditures were less than
budgeted amounts by approximately $3.2 million.
Page 21 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
13
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City of Crestview’s investments in capital assets for its governmental and business-type activities as
of September 30, 2022, amounts to $132 million ($80 million net of accumulated depreciation). This
investment in capital assets includes land, buildings, water, wastewater and drainage systems
improvements, machinery and equipment, park facilities, roads, and highways, etc. The total increase in
the City of Crestview’s gross capital assets for the current fiscal year were $11.5 million or 9.6% overall,
and is summarized as follows:
• Construction in progress ($5.2 million which is net of $2.6 million of closings to the plant
accounts).
• Improvements to highways and streets and other infrastructure ($883 thousand) and water and
sewer system ($476 thousand).
• Purchases of equipment and vehicles for the police, fire, streets, permitting, utility, stormwater
departments, and the golf course ($4.9 million).
TABLE 3
CITY OF CRESTVIEW CAPITAL ASSETS
Land $3,781,127 $3,758,127 $2,711,370 $2,711,370 $6,492,497 $6,469,497
Construction in progress 11,956,874 8,490,490 7,799,113 6,042,657 19,755,987 14,533,147
Buildings 8,794,946 8,394,828 8,954,298 8,954,298 17,749,244 17,349,126
Improvements 8,339,162 8,203,676 3,635,890 3,635,890 11,975,052 11,839,566
Infrastructure 15,418,907 15,071,839 36,876,609 36,401,111 52,295,516 51,472,950
Machinery and equipment 10,044,308 9,002,301 10,079,328 7,028,362 20,123,636 16,030,663
Leased equipment 2,122,703 1,591,177 398,387 121,274 2,521,090 1,712,451
Intangible assets 1,007,202 1,007,202 - - 1,007,202 1,007,202
Total prior to depreciation 61,465,229 55,519,640 70,454,995 64,894,962 131,920,224 120,414,602
Less accumulation
depreciation 26,921,894 25,119,922 24,345,783 22,441,368 51,267,677 47,561,290
Total $34,543,335 $30,399,718 $46,109,212 $42,453,594 $80,652,547 $72,853,312
Governmental Activities Business-Type Activities Total
2022 2021 2022 2021 2022 2021
Page 22 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
14
Long-Term Debt
At the end of the current fiscal year, the City of Crestview had total long-term debt outstanding of $38.2
million. The City of Crestview’s debt represents bonds secured solely by specified revenue sources (i.e.,
revenue bonds), state revolving loans, and capital leases. The State of Florida does not place a legal limit
of debt on municipalities. For general obligation debts greater than one year, the City of Crestview is
required to conduct a voter referendum process for approval of this type of debt. The City of Crestview
has no general obligation debts greater than one year as of September 30, 2022.
TABLE 4
CITY OF CRESTVIEW OUTSTANDING DEBT
REVENUE BONDS, NOTES PAYABLE AND CAPITAL LEASES
Net of deferred outflows related to losses on bond refunding, total long-term debt increased by
approximately $6.3 million during the 2022 fiscal year. Additional information on the City of Crestview’s
long-term debt can be found in Note 6 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The State of Florida, by constitution, does not have a state personal income tax and, therefore, the state
operates primarily using sales, gasoline, and corporate income taxes. Local governments (cities, counties,
and school boards) primarily rely upon property and limited array of permitted other taxes (sales,
gasoline, utility service taxes, etc.) and fees (franchise and business license) for their governmental
activities. There are a limited number of state shared revenues and recurring and non-recurring grants
from both the state and federal government, which provide funding for specific programs, projects, or
activities. For the business-type activities and certain governmental activities (permitting and recreational
programs) the user pays a related fee or charge associated with the service.
The level of taxes, fees, and charges for services (including development related impact fees) has an
impact on the City of Crestview’s specific competitive ability to encourage development and
redevelopment (office, retail, residential, and industrial) for those businesses that choose to locate in our
jurisdiction. As the City of Crestview and surrounding area continues to experience growth, the City of
Crestview places great emphasis on forecasting the needs of the future to ensure the continued financial
and economic health of our community.
Notes payable $- $- $7,755,999 $8,518,775 $7,755,999 $8,518,775
Leases 1,143,732 936,328 317,462 95,027 1,461,194 1,031,355
Revenue bonds 13,264,367 11,549,977 15,687,813 10,728,850 28,952,180 22,278,827
Total $14,408,099 $12,486,305 $23,761,274 $19,342,652 $38,169,373 $31,828,957
202120222021202220212022
Governmental Activities Business-Type Activities Total
Page 23 of 138
CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
15
The military has a significant presence in our community with Duke Field, Eglin Air Force Base, Hurlburt
Special Operations, and the 7th Special Forces Operations Group employing military and civilian personnel.
These installations are essential to the continued long-term economic vitality of this area. Eglin Air Force
Base is the world’s largest Department of Defense installation, spanning 724 square miles. Defense
contractor companies are established throughout the Northwest Florida region.
The City of Crestview is undertaking several processes to assist in future planning by creating a multi-year
capital improvement program. Another factor that is being looked at is a replacement program for capital
equipment such as vehicles, computers, etc.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of Crestview’s finances for all
those with an interest in the City of Crestview’s finances. Questions concerning any of the information
provided in this report or requests for additional information should be addressed to the Office of the
Finance Director, 198 N. Wilson Street, Crestview, Florida 32536. The City of Crestview’s website address
is www.cityofcrestview.org. Inquiries may also be sent via email to the Finance Department at
ginatoussiant@cityofcrestview.org.
Page 24 of 138
BASIC FINANCIAL STATEMENTS
Page 25 of 138
Governmental Business-Type
Activities Activities Total
Assets
Cash and Cash Equivalents 22,925,910$ 6,603,951$ 29,529,861$
Investments 53,285 - 53,285
Accounts Receivable, Net 485,735 1,684,943 2,170,678
Due from Other Governments 2,407,897 - 2,407,897
Inventories - 70,895 70,895
Interfund Receivable 72,326 - 72,326
Prepaid Expenses 244,293 115,684 359,977
Restricted Assets:
Cash and Cash Equivalents 740,629 7,771,754 8,512,383
Investments - 260,694 260,694
Capital Assets:
Assets not Being Depreciated 15,738,001 10,510,484 26,248,485
Assets Being Depreciated, Net 18,805,334 35,598,729 54,404,063
Total Assets 61,473,410 62,617,134 124,090,544
Deferred Outflows of Resources
Deferred Loss on Bond Refunding - 731,545 731,545
Other Postemployment Benefits 404,524 69,653 474,177
Pensions 6,891,764 1,161,073 8,052,837
Total Deferred Outflows of Resources 7,296,288 1,962,271 9,258,559
Liabilities
Accounts Payable 740,098 653,887 1,393,985
Accrued Expenses 215,934 161,081 377,015
Interfund Payables - 72,326 72,326
Unearned Revenue 55,961 1,584,208 1,640,169
Due to Other Governments 493,291 - 493,291
Accrued Interest 90,841 74,223 165,064
Customer Deposits 12,006 898,590 910,596
Non-Current Liabilities:
Due Within One Year 2,210,495 1,511,295 3,721,790
Due in More Than One Year 24,516,823 24,112,662 48,629,485
Total Liabilities 28,335,449 29,068,272 57,403,721
Deferred Inflows of Resource
Other Postemployment Benefits 222,398 38,294 260,692
Pensions 224,640 12,038 236,678
Total Deferred Inflows of Resources 447,038 50,332 497,370
Net Position
Net Investment in Capital Assets 20,135,236 25,771,441 45,906,677
Restricted for:
Non-Spendable 53,285 - 53,285
Impact Fees 329,833 2,545,381 2,875,214
Debt Service 410,796 317,160 727,956
Reserve and Replacement - 250,000 250,000
Building Permits 1,324,426 - 1,324,426
Redevelopment 474,294 - 474,294
Unrestricted 17,259,341 6,576,819 23,836,160
Total Net Position 39,987,211$ 35,460,801$ 75,448,012$
CITY OF CRESTVIEW, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
Primary Government
The accompanying notes are an integral part of these financial statements.
16
Page 26 of 138
Operating Capital
Charges for Grants and Grants and
Function/Program Activities Expenses Services Contributions Contributions
Governmental Activities
General Government 6,167,465$ 1,138,443$ 77,123$ -$
Public Safety 12,868,310 370,639 43,734 480,553
Economic Environment 139,742 - 184,904 -
Transportation 1,983,031 - - -
Human Services 165,622 4,229 - -
Culture and Recreation 2,244,594 329,602 - 250,000
Interest 386,489 - - -
Total Governmental Activities 23,955,253 1,842,913 305,761 730,553
Business-Type Activities
Utilities 8,323,951 10,208,288 - 2,290,455
Sanitation 4,001,333 4,464,893 - -
Stormwater 344,904 399,198 - -
Crestview Unlimited 984,826 492,077 - -
Total Business-Type Activities 13,655,014 15,564,456 - 2,290,455
Total 37,610,267$ 17,407,369$ 305,761$ 3,021,008$
General Revenues
Taxes:
Property Taxes
Franchise and Utility Taxes
Communication Service Tax
Fuel Taxes
Other Taxes
State-Shared Revenues
Other Intergovernmental Revenue
Investment Earnings
Miscellaneous Revenue
Transfers
Total General Revenues
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
CITY OF CRESTVIEW, FLORIDA
YEAR ENDED SEPTEMBER 30, 2022
STATEMENT OF ACTIVITIES
Program Revenues
The accompanying notes are an integral part of these financial statements.
17
Page 27 of 138
Governmental Business-Type
Activities Activities Total
(4,951,899)$ -$ (4,951,899)$
(11,973,384) - (11,973,384)
45,162 - 45,162
(1,983,031) - (1,983,031)
(161,393) - (161,393)
(1,664,992) - (1,664,992)
(386,489) - (386,489)
(21,076,026) - (21,076,026)
- 4,174,792 4,174,792
- 463,560 463,560
- 54,294 54,294
- (492,749) (492,749)
- 4,199,897 4,199,897
(21,076,026) 4,199,897 (16,876,129)
9,586,787 - 9,586,787
4,927,091 - 4,927,091
813,682 - 813,682
795,332 - 795,332
106,597 - 106,597
8,625,104 - 8,625,104
63,496 - 63,496
34,000 1,277 35,277
1,093,125 - 1,093,125
(729,719) 729,719 -
25,315,495 730,996 26,046,491
4,239,469 4,930,893 9,170,362
35,747,742 30,529,908 66,277,650
39,987,211$ 35,460,801$ 75,448,012$
CITY OF CRESTVIEW, FLORIDA
Net (Expense) Revenue and
Changes in Net Position
YEAR ENDED SEPTEMBER 30, 2022
STATEMENT OF ACTIVITIES
The accompanying notes are an integral part of these financial statements.
18
Page 28 of 138
Other Total
Governmental Governmental
General Funds Funds
Assets
Cash and Cash Equivalents 20,727,370$ 2,198,540$ 22,925,910$
Cash and Cash Equivalents - Restricted 668,814 71,815 740,629
Investments - 53,285 53,285
Accounts Receivable - Other 485,735 - 485,735
Interfund Receivables 374,097 - 374,097
Due from Other Governments 2,106,126 301,771 2,407,897
Prepaid Expenses 241,995 2,298 244,293
Total Assets 24,604,137$ 2,627,709$ 27,231,846$
Liabilities
Accounts Payable 633,634$ 106,464$ 740,098$
Accrued Expenses 214,679 1,255 215,934
Customer Deposits 12,006 - 12,006
Due to Other Governments 493,291 - 493,291
Interfund Payables - 301,771 301,771
Unearned Revenue 55,961 - 55,961
Total Liabilities 1,409,571 409,490 1,819,061
Deferred Inflows of Resources
Unavailable Revenues 275,216 - 275,216
Fund Balances
Non-Spendable 241,995 55,583 297,578
Restricted 668,814 1,870,535 2,539,349
Assigned 2,575,178 292,101 2,867,279
Unassigned 19,433,363 - 19,433,363
Total Fund Balances 22,919,350 2,218,219 25,137,569
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 24,604,137$ 2,627,709$ 27,231,846$
CITY OF CRESTVIEW, FLORIDA
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
The accompanying notes are an integral part of these financial statements.
19
Page 29 of 138
Total Funds Balances - Governmental Funds 25,137,569$
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are not
financial resources and, therefore, are not reported
in the governmental funds.
Capital Assets 61,465,229$
Less Accumulated Depreciation (26,921,894) 34,543,335
Certain pension and other postemployment benefits are being
deferred and amortized over a period of years:
Deferred Outflows Related to Pensions and OPEB 7,296,288
Deferred Inflows Related to Pensions and OPEB (447,038) 6,849,250
Long-term liabilities are not due and payable in the current
period and, therefore, are not reported as liabilities in the
governmental funds:
Accrued Interest Payable (90,841)
Bonds, Notes and Leases (14,408,099)
Net Pension Liability (Asset)(9,446,780)
Compensated Absences (1,084,608)
Other Postemployment Benefit Obligation (1,787,831) (26,818,159)
Some revenues have been deferred on the balance sheet because
they were not measurable and available at year-end.275,216
Total Net Position - Governmental Activities 39,987,211$
CITY OF CRESTVIEW, FLORIDA
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
The accompanying notes are an integral part of these financial statements.
20
Page 30 of 138
Other Total
Governmental Governmental
General Funds Funds
Revenues
Taxes 14,002,007$ 85,186$ 14,087,193$
License and Permits 2,229,088 854,878 3,083,966
Intergovernmental 9,290,010 434,904 9,724,914
Charges for Services 338,040 - 338,040
Fines and Forfeitures 309,450 - 309,450
Miscellaneous 577,646 3,232 580,878
Total Revenues 26,746,241 1,378,200 28,124,441
Expenditures
Current:
General Government 5,715,871 933,679 6,649,550
Public Safety 11,885,866 395,337 12,281,203
Transportation 2,162,491 - 2,162,491
Economic Environment - 139,742 139,742
Human Services 225,639 - 225,639
Culture and Recreation 4,601,637 - 4,601,637
Debt Service:
Principal 959,266 217,997 1,177,263
Interest 296,430 80,811 377,241
Total Expenditures 25,847,200 1,767,566 27,614,766
Excess (Deficiency) of Revenues Over
(Under) Expenditures 899,041 (389,366) 509,675
Other Financing Sources (Uses)
Transfers in 787,324 446,136 1,233,460
Transfers (out)(1,837,826) (129,000) (1,966,826)
Debt Proceeds 2,575,000 - 2,575,000
Sale of General Capital Assets 524,784 - 524,784
Lease Obligation 507,272 - 507,272
Total Other Financing Sources (Uses)2,556,554 317,136 2,873,690
Net Changes in Fund Balances 3,455,595 (72,230) 3,383,365
Fund Balance, Beginning of Year 19,463,755 2,290,449 21,754,204
Fund Balance, End of Year 22,919,350$ 2,218,219$ 25,137,569$
CITY OF CRESTVIEW, FLORIDA
IN FUND BALANCES - GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2022
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
The accompanying notes are an integral part of these financial statements.
21
Page 31 of 138
Net Change in Fund Balances - Governmental Funds 3,383,365$
Amounts reported for governmental activities in the statement
of activities are different because:
The repayment of principal on long-term debt consumes the current
financial resources of governmental funds but has no effect on the
government-wide net position. Also, governmental funds report the
effects of premiums, discounts, and similar items when debt is first issued,
whereas these amounts are deferred in the statement of activities.
Principal Payments 1,177,263$
Debt Proceeds (3,082,272)
Amortization of Bond Premium 2,220 (1,902,789)
Capital outlays are reported in the governmental funds as
expenditures. However, in the statement of activities, the
cost of those assets is allocated over their useful lives as
depreciation expense.
Expenditures for Capital Assets 5,922,937
Transfer of Capital Assets Less Related Debt 3,647
(Current Year Depreciation)(1,801,972) 4,124,612
Some expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported
as expenditures in the governmental funds:
Change in Accrued Interest (11,468)
Change in Accrued Compensated Absences (91,524)
Change in Net Pension Liability (Asset)(1,370,277)
Change in Other Postemployment Benefits (167,666) (1,640,935)
Some revenues have been deferred in the governmental funds because
they were not available at year-end, but have been recognized in the
statement of activities.275,216
Change in Net Position - Governmental Activities 4,239,469$
CITY OF CRESTVIEW, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2022
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
The accompanying notes are an integral part of these financial statements.
22
Page 32 of 138
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Taxes 14,630,872$ 13,444,486$ 14,002,007$ 557,521$
License and Permits 1,545,500 1,545,500 2,229,088 683,588
Intergovernmental 7,587,122 7,477,532 9,290,010 1,812,478
Charges for Services 239,000 314,190 338,040 23,850
Fines and Forfeitures 311,500 310,000 309,450 (550)
Miscellaneous 251,300 433,398 577,646 144,248
Total Revenues 24,565,294 23,525,106 26,746,241 3,221,135
Expenditures
Current:
General Government 6,185,982 6,815,794 5,715,871 1,099,923
Public Safety 11,958,116 13,005,024 11,885,866 1,119,158
Transportation 5,248,876 3,030,116 2,162,491 867,625
Human Services - 293,980 225,639 68,341
Culture and Recreation 2,005,150 4,703,013 4,601,637 101,376
Debt Service:
Principal 1,282,591 980,112 959,266 20,846
Interest 13,385 296,432 296,430 2
Total Expenditures 26,694,100 29,124,471 25,847,200 3,277,271
Excess (Deficiency) of Revenues Over
(Under) Expenditures (2,128,806) (5,599,365) 899,041 6,498,406
Other Financing Sources (Uses)
Transfers in 863,005 2,158,981 787,324 (1,371,657)
Transfers (out)(615,107) (1,623,010) (1,837,826) (214,816)
Sale of General Capital Assets - - 524,784 524,784
Debt Proceeds - 2,575,000 2,575,000 -
Lease Obligation - - 507,272 507,272
Total Other Financing Sources (Uses)247,898 3,110,971 2,556,554 (554,417)
Reserves 1,880,908 2,488,394 19,463,755 16,975,361
Net Change in Fund Balances -$ -$ 22,919,350$ 22,919,350$
YEAR ENDED SEPTEMBER 30, 2022
FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
CITY OF CRESTVIEW, FLORIDA
The accompanying notes are an integral part of these financial statements.
23
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Utilities Sanitation Other
Fund Fund Funds Total
Assets
Current Assets:
Cash and Cash Equivalents 3,030,542$ 3,270,674$ 302,735$ 6,603,951$
Accounts Receivable, Net 1,053,647 601,551 29,745 1,684,943
Prepaid Expenses 112,741 - 2,943 115,684
Inventories - - 70,895 70,895
Total Current Assets 4,196,930 3,872,225 406,318 8,475,473
Non-Current Assets:
Restricted Assets:
Cash and Cash Equivalents 7,771,754 - - 7,771,754
Investments 260,694 - - 260,694
Capital Assets:
Assets not Being Depreciated 10,510,484 - - 10,510,484
Assets Being Depreciated, Net 35,402,916 - 195,813 35,598,729
Total Non-Current Assets 53,945,848 - 195,813 54,141,661
Total Assets 58,142,778 3,872,225 602,131 62,617,134
Deferred Outflows of Resources
Deferred Loss on Bonding Refunding 731,545 - - 731,545
Other Postemployment Benefits 64,273 - 5,380 69,653
Pensions 1,071,395 - 89,678 1,161,073
Total Deferred Outflows of Resources 1,867,213 - 95,058 1,962,271
Enterprise Funds
Business-Type Activities
CITY OF CRESTVIEW, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2022
The accompanying notes are an integral part of these financial statements.
24
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Utilities Sanitation Other
Fund Fund Funds Total
Liabilities
Current Liabilities:
Accounts Payable 307,142$ 303,615$ 43,130$ 653,887$
Accrued Expenses 114,728 - 46,353 161,081
Accrued Interest 74,223 - - 74,223
Due to Other Funds - - 72,326 72,326
Unearned Revenue 1,582,435 - 1,773 1,584,208
Customer Deposits 898,590 - - 898,590
Revenue Bonds, Notes, and
Capital Leases Payable 1,453,808 - 7,147 1,460,955
Compensated Absences 48,567 - 1,773 50,340
Total Current Liabilities 4,479,493 303,615 172,502 4,955,610
Non-Current Liabilities:
Other Postemployment
Benefits Obligation 284,061 - 23,776 307,837
Net Pension Liability 1,454,399 - 121,736 1,576,135
Compensated Absences 145,701 - 9,486 155,187
Revenue Bonds, Notes, and
Leases Payable 22,055,192 - 18,311 22,073,503
Total Non-Current Liabilities 23,939,353 - 173,309 24,112,662
Total Liabilities 28,418,846 303,615 345,811 29,068,272
Deferred Inflows of Resources
Other Postemployment Benefits 35,336 - 930 36,266
Pensions 11,108 - 2,958 14,066
Total Deferred Inflows of Resources 46,444 - 3,888 50,332
Net Position
Net Investment in Capital Assets,
Net of Related Debt 25,601,086 - 170,355 25,771,441
Restricted 3,112,541 - - 3,112,541
Unrestricted 2,831,074 3,568,610 177,135 6,576,819
Total Net Position 31,544,701$ 3,568,610$ 347,490$ 35,460,801$
CITY OF CRESTVIEW, FLORIDA
Enterprise Funds
Business-Type Activities
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2022
The accompanying notes are an integral part of these financial statements.
25
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Utilities Sanitation Other
Fund Fund Funds Total
Operating Revenue
Charges for Service 8,224,364$ 4,449,517$ 890,725$ 13,564,606$
Other 1,983,924 15,376 550 1,999,850
Total Operating Revenue 10,208,288 4,464,893 891,275 15,564,456
Operating Expenses
Personnel Expenses 2,565,871 - 689,984 3,255,855
Purchased Services 1,165,307 3,975,783 33,987 5,175,077
Repairs and Maintenance 277,062 - 98,158 375,220
Depreciation and Amortization 1,901,352 - 4,667 1,906,019
Materials and Supplies 389,288 - 355,464 744,752
Other Expenses 1,226,609 25,550 137,955 1,390,114
Total Operating Expenses 7,525,489 4,001,333 1,320,215 12,847,037
Operating Income 2,682,799 463,560 (428,940) 2,717,419
Non-Operating Revenue and Expense
Interest Earnings 1,277 - - 1,277
Interest Expense (798,462) - (9,515) (807,977)
Total Non-Operating Revenues
and Expenses (797,185) - (9,515) (806,700)
Income Before Operating Transfers 1,885,614 463,560 (438,455) 1,910,719
Capital Contributions
Capital Grants 2,290,455 - - 2,290,455
Transfers
Transfers in 1,637,699 - 238,162 1,875,861
Transfers (out)(1,045,629) (100,000) (513) (1,146,142)
Total Transfers 592,070 (100,000) 237,649 729,719
Change in Net Position 4,768,139 363,560 (200,806) 4,930,893
Net Position, Beginning of Year 26,776,562 3,205,050 548,296 30,529,908
Net Position, End of Year 31,544,701$ 3,568,610$ 347,490$ 35,460,801$
CITY OF CRESTVIEW, FLORIDA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2022
Enterprise Funds
Business-Type Activities
The accompanying notes are an integral part of these financial statements.
26
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Utilities Sanitation Other
Fund Fund Funds Total
Cash Flows from Operating Activities
Cash Received from Customers 9,785,108$ 4,397,256$ 887,122$ 15,069,486$
Cash Paid to Suppliers for
Goods and Services (2,976,454) (3,979,552) (614,547) (7,570,553)
Cash Paid to Employees for Services (2,381,552) - (675,563) (3,057,115)
Net Cash Provided by Operating Activities 4,427,102 417,704 (402,988) 4,441,818
Cash Flows from Non-Capital
Financing Activities
Due to/from Other Funds - - 72,326 72,326
Transfers to Other Funds (1,045,629) (100,000) (513) (1,146,142)
Transfers from Other Funds 1,637,699 - 238,162 1,875,861
Net Cash Provided by Non-Capital
Financing Activities 592,070 (100,000) 309,975 802,045
Cash Flows from Capital and Related
Financing Activities
Acquisition and Construction of
Capital Assets (5,059,791) - (172,989) (5,232,780)
Debt Proceeds 5,075,000 - - 5,075,000
Interest Paid (723,314) - (9,515) (732,829)
Principal Payment of Bonds, Notes
and Capital Leases (1,228,776) - (2,033) (1,230,809)
Capital Grants 2,290,455 - - 2,290,455
Net Cash Used in Capital and Related
Financing Activities 353,574 - (184,537) 169,037
Cash Flows from Investing Activities
Purchases of Investments (429) - - (429)
Interest Received 1,277 - - 1,277
Net Cash Provided by Investing Activities 848 - - 848
Net Change in Cash and Cash Equivalents 5,373,594 317,704 (277,550) 5,413,748
Cash and Cash Equivalents, Beginning of Year 5,428,702 2,952,970 580,285 8,961,957
Cash and Cash Equivalents, End of Year 10,802,296$ 3,270,674$ 302,735$ 14,375,705$
Enterprise Funds
Business-Type Activities
CITY OF CRESTVIEW, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2022
The accompanying notes are an integral part of these financial statements.
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Utilities Sanitation Other
Fund Fund Funds Total
Displayed as
Cash and Cash Equivalents 3,030,542$ 3,270,674$ 302,735$ 6,603,951$
Restricted Cash and Cash Equivalents 7,771,754 - - 7,771,754
Total 10,802,296$ 3,270,674$ 302,735$ 14,375,705$
Reconciliation of Operating Income to Net Cash
Operating Income 2,682,799$ 463,560$ (428,940)$ 2,717,419$
Adjustments to Reconcile Operating
Income to Net Cash Provided by
Operating Activities:
Depreciation and Amortization Expense 1,901,353 - 4,667 1,906,020
Changes in Operating Assets
and Liabilities:
Accounts Receivable (82,313) (67,637) (5,926) (155,876)
Prepaid Expenses (112,741) - (2,943) (115,684)
Inventories (70,895) (70,895)
Accounts Payable and Accrued
Expenses 194,552 21,781 84,855 301,188
Unearned Revenues (353,650) - 1,773 (351,877)
Customer Deposits 12,783 - - 12,783
Compensated Absences (25,925) - (127) (26,052)
Other Postemployment Benefits
and Related Deferred Inflows
and Outflows 35,595 - 3,537 39,132
Net Pension Liability and Related
Deferred Inflows and Outflows 174,649 - 11,011 185,660
Total Adjustments 1,744,303 (45,856) 25,952 1,724,399
Net Cash Provided by Operating Activities 4,427,102$ 417,704$ (402,988)$ 4,441,818$
Supplemental Schedule of Non-Cash Activities
Lease Obligation 301,368$ -$ -$ 301,368$
Amortization of Bond (Premium)/Discount 18,756 - - 18,756
Amortization of Refunding Loss 56,897 - - 56,897
CITY OF CRESTVIEW, FLORIDA
Enterprise Funds
Business-Type Activities
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2022
The accompanying notes are an integral part of these financial statements.
28
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General Police Officers/
Employees Firefighters
Retirement Plans Plan Total
Assets
Cash and Cash Equivalents 207,934$ 258,305$ 466,239$
Contributions Receivable 23,158 458,218 481,376
Investments:
Fixed Income Securities 5,004,704 5,625,164 10,629,868
Common Stock and Equity Funds 11,382,991 12,874,219 24,257,210
Real Estate 4,256,841 4,581,280 8,838,121
Total Investments 20,644,536 23,080,663 43,725,199
Total Assets 20,875,628 23,797,186 44,672,814
Liabilities
Accounts Payable and Accrued Expenses 12,435 22,093 34,528
Net Position
Net Position Restricted for Pensions 20,863,193$ 23,775,093$ 44,638,286$
CITY OF CRESTVIEW, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2022
PENSION TRUST FUNDS
Fiduciary Funds
The accompanying notes are an integral part of these financial statements.
29
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General Police Officers/
Employees Firefighters
Retirement Plans Plan Total
Additions
Contributions:
Contributions - Employee 371,870$ 329,224$ 701,094$
Contributions - City 787,741 653,303 1,441,044
Contributions - State - 423,143 423,143
Total Contributions 1,159,611 1,405,670 2,565,281
Investment Income:
Investment Earnings (3,057,223) (3,363,906) (6,421,129)
(Investment Expenses)(194,257) (215,815) (410,072)
Net Investment Income (3,251,480) (3,579,721) (6,831,201)
Total Additions (2,091,869) (2,174,051) (4,265,920)
Deductions
Benefits Paid 1,471,769 814,459 2,286,228
Refunds of Contributions 110,590 58,901 169,491
Administrative Expenses 81,151 94,360 175,511
Total Deductions 1,663,510 967,720 2,631,230
Changes in Net Position (3,755,379) (3,141,771) (6,897,150)
Net Position, Beginning of Year 24,618,572 26,916,864 51,535,436
Net Position, End of Year 20,863,193$ 23,775,093$ 44,638,286$
CITY OF CRESTVIEW, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
YEAR ENDED SEPTEMBER 30, 2022
Fiduciary Funds
The accompanying notes are an integral part of these financial statements.
30
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NOTES TO BASIC FINANCIAL STATEMENTS
Page 41 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
31
Note 1 - Summary of Significant Accounting Policies
The City of Crestview (the City) was originally incorporated as the Town of Crestview under Laws of the
State of Florida in April 11, 1916. The town was re-incorporated by Chapter 9718, Acts 1923, and
Chapter 25754, Special Acts 1949, as the City of Crestview. The City operates under the Council-Mayor
form of government and provides the following services: public safety (law enforcement and fire control),
roads and streets, water and sewer, sanitation, culture and recreation, public improvements, planning
and zoning, and general administrative services.
The financial statements of the City have been prepared in accordance with accounting principles
generally accepted (GAAP) in the United States of America applicable to governmental units and the
Uniform Accounting System mandated by Chapter 218.33, Florida Statutes. The Governmental
Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and
financial reporting.
The following is a summary of the more significant accounting policies of the City:
A. Reporting Entity
The City is governed by a five-member City Council and a Mayor, each elected at-large for four-year terms.
The Council has no powers other than those expressly vested in by State Statute and the City Charter and
their governmental powers cannot be delegated.
As required by GAAP, these financial statements present the City (the primary government) and its
component units, entities for which the City is considered to be financially accountable. In evaluating the
City as reporting entity, management has considered all potential component units for which the City may
or may not be financially accountable and, as such, be included within the City’s financial statements.
Management utilized criteria set forth in GASB Statement No. 61 for determining financial accountability
of potential component units in evaluating all potential component units. In accordance with GASB
Statement No. 61, the City (primary government) is financially accountable if it appoints a voting majority
of the potential component unit’s governing board and: (1) it is able to impose its will on the organization,
or (2) there is a potential for the organization to provide specific burden on the City. In addition,
component units can be other organizations for which the nature and significance of their relationship
with the primary government are such that exclusion would cause the reporting entity’s financial
statements to be misleading or incomplete.
As of September 30, 2022, the City has two component units, the Crestview Community Redevelopment
Agency (the Agency) and Crestview Unlimited, Inc. These entities are presented in the financial
statements of the primary government as blended component units.
The Agency was established by the City as a separate legal entity in accordance with Florida Statute
166.021, Chapter 163, Part III. The Agency oversees the redevelopment of the downtown area. The
Community Redevelopment Board of Commissioners consists of the City Council. In addition, City
employees manage the Agency’s assets. The Agency is reported in the financial statements of the primary
government as a non-major governmental fund. The Agency also issues separate, audited financial
statements which are available from the Agency at 198 North Wilson Street, Crestview, Florida 32536.
Page 42 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
32
Crestview Unlimited, Inc. (Crestview Unlimited) was established as a separate not-for-profit corporation
on June 10, 2021. The purpose of this entity is to erect and maintain public facilities fostering amateur
sports. The Board of Directors of Crestview Unlimited consists of the City Council. Due to the level of
control and a benefit/burden relationship with the City, Crestview Unlimited is reported in the financial
statements of the City as a non-major enterprise fund. This fund will account for the operation of a golf
course managed by Crestview Unlimited. Crestview Unlimited does not issue separate financial
statements from the City.
The City of Crestview Housing Authority (the Authority) is considered a related organization to the City
rather than a component unit. The Mayor of the City appoints each of the five board members of the
Authority. The Mayor and members of the City Council have no oversight responsibility or any financial
relationship with the Authority, other than providing certain services. Thus, the Authority is determined
not to be a part of the reporting entity and is not included as a component unit in the financial statements.
B. Government-Wide and Fund Financial Statements
The basic financial statements include both government-wide (based on the City as a whole) and fund
financial statements. The government-wide financial statements (i.e., the Statement of Net Position and
the Statement of Activities) report information on all of the non-fiduciary activities of the primary
government and its component unit. For the most part, the effect of interfund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely, to a
significant extent, on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include: 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services or privileges provided by a given function or
segment, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though fiduciary funds are excluded from the government-wide financial statements. Major
individual governmental funds and major enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Pension plans recognize revenue when contributions are
due, as there is a statutory requirement to make the contribution. Property taxes are recorded as revenue
in the year for which they are levied. Grants and similar items are recognized as rev enue soon as all
eligibility requirements imposed by the provider have been met.
Page 43 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
33
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collected within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims
and judgements, are recorded only when payment is due.
Franchise fees, licenses, sales taxes, gas taxes, operating and capital grants and interest associated with
the current fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. All other items are considered to be measurable only when cash is
received by the City.
The City’s ad valorem taxes are assessed by the Okaloosa County Property Appraiser and collected by the
Okaloosa County Tax Collector in accordance with Florida Statutes. The City retains the right and duty to
set millage rates. Property taxes are not recorded as receivables at September 30 because, though legally
assessed as of January 1, they are not due and payable until after the close of the fiscal year ended the
following September 30.
Details of the property tax calendar are presented below:
Assessment Date January 1, 2021
Levy Date November 1, 2021
Due Date March 31, 2022
Delinquency Date April 1, 2022
Discounts of 1% for each month taxes are paid prior to March are granted.
Revenue recognition criteria for property taxes under GASB requires that only property taxes expected to
be collected within 60 days of the current period be accrued. Property taxes which are uncollected as of
the end of the fiscal year are generally immaterial in amount and highly susceptible to uncollectibility;
therefore, they are not recorded as a receivable at the balance sheet date.
D. Basis of Presentation
The financial transactions of the City are recorded in individual funds. Each fund is a separate accounting
entity with a self-balancing set of accounts recording cash and other financial resources, together with all
related liabilities and residual equities or balances, and changes therein, which are segregated for the
purpose of carrying on specific activities or attaining certain objectives in accordance with special
regulations, restrictions or limitations. As a general rule, the effect of interfund 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.
Internally dedicated resources are reported as general revenues rather than program revenues. Likewise,
general revenues include all taxes.
Page 44 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
34
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues for
the City’s enterprise funds are charges to customers for sales and services. Operating expenses for
enterprise funds include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenue 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 government’s policy to use
restricted resources first, then unrestricted resources as they are needed.
The following three classifications are used to categorize the fund types used by the City:
■ Governmental Funds
Governmental funds focus on the determination of financial position and changes in financial position
(sources, uses and balances of financial resources) and not net income.
The City reports the following major governmental fund:
General Fund—This is the City’s primary operating Fund. It is used to account for all financial
resources except those required to be accounted for in another fund. All general tax revenues and
other receipts that are not restricted by law or contractual agreement to some other fund are
accounted for in this fund. General operating expenditures, fixed charges and capital improvement
costs that are not paid through other funds are paid from the General Fund.
■ Proprietary Funds
Proprietary funds focus on the determination of net income, changes in net position, financial position
and cash flows. All of the City’s proprietary funds are enterprise funds, as fees are charged to external
users for services. The following is a description of the major proprietary funds of the City.
Utilities Fund—This fund accounts for the City’s distribution of potable water; sales and service and
sanitary wastewater collection; and treatment of and disposal operations services.
Sanitation Fund—This fund accounts for the City’s solid waste collection, disposal, and/or recycling
services.
■ Fiduciary Funds
Fiduciary funds are used to account for the assets held on behalf of outside parties, including other
governments. The City has two major fiduciary funds:
Crestview Police Officers/Firefighters Retirement Plan—Used to report resources that are required
to be held in trust for the members and beneficiaries of a defined benefit pension plan administered
by the City for all City police officers and firefighters.
Crestview General Employees Retirement Plan—Used to report the resources that are required to be
held in trust for the members and beneficiaries of a defined benefit pension plan administered by the
City for the employees that are not part of the police officer/firefighter plan.
Page 45 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
35
E. Assets, Liabilities, and Net Position or Fund Balances
Cash and Cash Equivalents
The City has defined cash and cash equivalents to include cash on hand, demand deposits, certificates of
deposits, and short-term investments with original maturities of three months or less from the date of
acquisition.
Deposits and Investments
Section 218.415, Florida Statutes, requires the investment of surplus public funds and prescribes the
instruments in which those investments are authorized, specifically the State of Florida Local Government
Surplus Funds Trust Fund, direct obligations of the United States Government or other obligations
unconditionally guaranteed by the United States Government and other similar permitted investments.
The City adheres strictly to the provisions of those cited Statutes, as well as with Chapter 280, Florida
Statutes, which requires the City to maintain deposits only with Qualified Public Depositories (QPDs). The
City maintains a cash pool available for use by all funds. Earnings from the pool are allocated to the
respective funds based on applicable cash participation by each fund.
In addition, restricted cash accounts, certificates of deposit, and other investments are separately
maintained by a few City funds in accordance with bond ordinances, retirement fund plan documents and
other contractual agreements. Investments are stated at fair value.
Cash amounts in the general and utilities funds are generally either placed in State Board of Administration
Debt Service accounts for investment of debt service moneys, invested with the State Board of
Administration for participation in the Local Government Surplus Funds Trust Fund investment pools
created by Section 218.405 and 218.417, Florida Statutes, or made locally.
At September 30, 2022, the City’s investments in the Local Government Surplus Funds Trust Fund A
(Florida PRIME), which the State Board of Administration indicates is a Securities and Exchange
Commission Rule 2a7-like external investment pool, are similar to money market funds in which shares
are owned in the fund rather than the underlying investments. These investments are reported at fair
value, which approximates amortized cost.
Pension Trust Funds may invest in collateralized interest-bearing time deposits or savings accounts in state
or federal banks or savings and loan associations; direct obligations of the United States Government or
other obligations unconditionally guaranteed by the United States Government or an agency of the U.S.
Government; stocks, mutual funds, corporate bonds, structured mortgage products issued by the U.S.
Government, or other mortgage related or asset-backed securities provided the meet certain criteria; real
estate; and foreign fixed income and equity securities.
Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as either “interfund receivables/payables” (i.e., the current
portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund
loans). Any residual balances outstanding between governmental activities and business-type activities
are reported in the government-wide financial statements as “internal balances”.
Page 46 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
36
Advances between funds, if any, are offset by a fund balance reserve account in applicable governmental
funds to indicate they are not available for appropriation and are not expendable available financial
resources.
Services provided, deemed to beat market or near market rates, are treated as revenues and
expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate
benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are
treated as transfers.
Accounts receivable from customers are reported at the outstanding balance due from customers, net of
any allowance for doubtful accounts. The City provides for doubtful accounts based on experience and
analysis of individual accounts. When the collectability of a receivable becomes questionable, an
allowance for doubtful accounts is established. When specific accounts are determined to be
uncollectible, they are written off by charging the allowance and crediting the receivable. At
September 30, 2022, the allowance for doubtful accounts for proprietary funds totaled $70,000.
Restricted Assets
Certain proceeds of the City’s 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. Additionally, impact fees and customer deposits for water and sewer services are classified as
restricted assets.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements and in the fund financial statements for proprietary
funds. Capital assets are defined by the government as assets with an initial, individual cost of more than
$10,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated
fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets’ lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed, offset by any interest earned on the invested proceeds
over the same period.
Property, plant, and equipment of the primary government is depreciated using the straight-line method
over the following estimated useful lives:
Buildings and Utility System 20-50 Years
Improvements Other Than Buildings 20-40 Years
Infrastructure 20-40 Years
Machinery and Equipment 3-40 Years
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
37
Deferred Outflows/Inflows of Resources
A deferred outflow of resources represents a consumption of net assets that applies to a future period
and so will not be recognized as an outflow of resources (expense/expenditure) until that future time.
The City has the following items that qualify for reporting in this category:
◼ Deferred loss on refunding of bonds—losses on refunding of bonds have been deferred. These
amounts are being amortized over the life of the old debt or the life of the new debt, whichever is
shorter.
◼ Pension and OPEB related—increases in the net pension and OPEB liability resulting from changes of
assumptions, differences between projected and actual earnings on plan investments, and differences
between expected and actual experience with regard to economic or demographic factors in the
measurement of total pension and OPEB liability are reported as deferred outflows of resources, to
be recognized as an increase in expense future years as disclosed in Notes 9 and 10.
A deferred inflow of resources represents an acquisition of net assets that applies to a future period and,
therefore, will not be recognized as an inflow of resources until that future time. The City has the following
items that qualify for reporting in this category:
◼ Pension and OPEB related—decreases in the net pension and OPEB liability resulting from changes
of assumptions, differences between projected and actual earnings on plan investments, and
differences between expected and actual experience with regard to economic or demographic
factors in the measurement of total pension and OPEB liability are reported as deferred inflows
of resources, to be recognized as a decrease in expense in future years as disclosed in Notes 9 and
10.
◼ Unavailable Revenues—Unavailable revenues are revenues which are measurable, but not
available because they have not been received within the City’s period of availability. These
revenues are deferred and recorded as deferred inflows of resources in governmental fund
financial statements.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of
the City pension plans and additions to/deduction from the City pension plans’ fiduciary net position have
been determined on the same basis as they are reported by the City pension plans.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when
due and payable in accordance with benefit terms. Investments are reported at fair value.
Other Postemployment Benefits (OPEB)
The measurement of net OPEB obligation, deferred outflows of resources, and deferred inflows of
resources related to OPEB, and OPEB expense are described in more detail in Note 10. Additions
to/deductions have been determined on the same basis as they have been reported by the OPEB plan.
Benefit payments, including refunds of employee contributions, are recognized when due and payable in
accordance with the benefit terms.
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
38
Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation, personal, and sick
leave based on length of service to the City. All vacation, personal, and sick leave is accrued when incurred
in the government-wide and proprietary fund financial statements. A liability for the amounts of vacation,
personal, and sick leave is reported in the governmental fund financial statements only if they have
matured, for example, as a result of employee resignations and retirements.
Annual leave is accrued by full-time employees as follows:
Years of Employment General Police Fire
0 - 3 Years of Service 13.33 Hours 16 Hours 20 Hours
3 - 5 Years of Service 15.66 Hours 20 Hours 28 Hours*
5+ Years of Service 18 Hours 24 Hours 33 Hours*
*The fire accrual for the 3 - 5 years of service and the 5+ years of service are for those with less than 100
hours banked.
Upon termination or retirement, a maximum of 480 hours of accrued benefit will be paid for any earned
but unused leave to their credit as of the effective date of termination.
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums
and discounts are deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are
reported as current period expenses.
In the fund financial statements, governmental fund types recognize the face amount of debt issued as
other financing sources. Bond premiums and discounts are recognized as other financing sources or uses
as appropriate. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Classification of Fund Balance
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes
fund balance classifications that comprise a hierarchy based primarily on the extent to which government
is bound to observe constraints imposed upon the use of the resources reported in governmental funds.
Fund balance classifications, under GASB Statement No. 54, are compromised of the following:
■ Non-Spendable—includes amounts that are: (a) not in spendable form, or (b) legally or contractually
required to be maintained intact. The “not in spendable form” criterion includes items that are not
expected to be converted to cash, for example: inventories, deposits, prepaid items, and advances to
other funds.
■ Restricted—includes amounts that can be spent only for the specific purposes stipulated by external
resource providers, constitutionally or through enabling legislation. Restrictions may effectively be
changed or lifted only with the consent of resource providers.
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
39
■ Committed—includes fund balance amounts that can be used only for the specific purposes that are
internally imposed by a formal action of the government’s highest level of decision-making authority,
the City Council. Commitments may be changed or lifted only by the City taking the same formal
action that imposed the constraint initially. Contractual obligations are included to the extent that
existing resources in the fund have been specifically committed for use in satisfying those contractual
obligations.
■ Assigned—includes fund balance amounts that sets limits as a result of the intended use of funds that
are neither restricted nor committed, per the City’s Purchasing Policy, which is set by the City’s
management. In governmental funds, other than the general fund, assigned fund balance represents
the amount that is not restricted or committed. This indicates that the resources of other
governmental funds are, at a minimum, intended to be used for the purpose of that fund.
■ Unassigned—includes residual positive fund balance within the General Fund which has not been
classified within the other above-mentioned categories. Unassigned fund balance may also include
negative balances for any governmental fund if expenditures exceed amounts restricted, committed,
or assigned for those specific purposes.
When restricted, committed, assigned, or unassigned resources are available for use in the governmental
fund financial statements, it is the City’s policy to use restricted resources first, followed by committed,
assigned resources and then unassigned resources, as they are needed.
The City has established a fund balance policy which requires that 25% of budgeted annual operating
expenses be held in reserve for unanticipated events or emergencies.
Net Position
The government-wide and business-type fund financial statements utilize a net position presentation. Net
position is categorized as net investment in capital assets, restricted and unrestricted.
■ Net Investment in Capital Assets—is intended to reflect the portion of net position which are
associated with non-liquid, capital assets, net of related debt.
■ Restricted Net Position—are liquid assets, generated from revenues and net bond proceeds, which
are not accessible for general use because of third-party (statutory, bond covenant or grant agency)
limitations.
■ Unrestricted Net Position—represents unrestricted liquid assets.
F. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the
reported amounts of revenue and expenditures during the reporting period. Actual results could differ
from those estimates.
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
40
G. Budgets
Budgets are adopted on a basis consistent with GAAP, except that capital lease proceeds and related
capital outlay are excluded from the budget. Annual appropriated budgets are adopted by ordinance for
all governmental and proprietary funds. However, budgets for proprietary funds are not legally required
to be reported on and are not included in these financial statements. All appropriations lapse at fiscal
year-end except for appropriations related to multiyear capital projects.
Budgetary data reflected in the financial statements are established by the following procedures:
Prior to September 1 of each year, the City Council prepares in detail and adopts a budget of anticipated
revenues and expenditures for all City purposes of the ensuing year.
Proposed budgets are advertised in a newspaper of general circulation in the City and detailed in the
minutes of the Council. Public hearings are conducted for the purposes of receiving taxpayer comments.
When the budget is adopted, it has the force and effect of appropriations for the various items and
purposes specified.
The limits shall not be exceeded by the Council nor any office or department during the year.
Amendments and transfers may be made to the budget by a two-thirds vote of the Council and the
consent of the Mayor. The level of budgetary control (that is the level at which expenditures cannot
legally exceed appropriations) has been established at the fund level.
A budget amendment shall be deemed to mean the act of increasing the total budgeted amount of a given
fund as opposed to a transfer of a budgeted amount from one account to another within the same fund.
Budgeted amounts are as originally adopted, or as amended with the approval of the City Council. During
the year ended September 30, 2022, the City did not amend the General Fund’s original budget to prevent
actual expenditures from exceeding budgeted expenditures. Significant purchases, which the budget was
not amended for, were presented to and approved by City Council.
H. Adoption of New Accounting Pronouncement
The GASB issued Statement No. 87, Leases (GASB 87), in June of 2017. This statement is effective for the
current fiscal year ended September 30, 2022. This statement establishes a single model for lease
accounting based on the principle that leases are the financings of the right to use an underlying asset.
Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease
asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby,
enhancing the relevance and consistency of information about a government’s leasing activities. No
restatement of beginning net position was necessary as a result of the implementation of this statement.
See Note 8 for more information regarding the City’s leases.
Note 2 - Deposits and Investments
Deposits
Deposits may be exposed to custodial credit risk, which is the risk that in the event of a bank failure, the
government’s deposits may not be returned. The City manages its custodial credit risk by maintaining its
deposits with QPDs, as defined in Chapter 280, Florida Statutes, which bear no custodial credit risk or
Page 51 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
41
are in institutions which meet the exemption requirements of Chapter 280. The exemptions qualify under
the exemptions 280.03(e) or 280.03(f) as a deposit made in accordance with Chapter 17.57(g). The
provisions of Chapter 280 allow QPDs to participate in a multiple financial institution collateral pool to
ensure the security for public deposits.
All QPDs must place with the Treasurer of the State of Florida, securities which have a market value equal
to 50% of all public funds on deposit at the end of each month in excess of any applicable deposit
insurance. In the event of default by a qualified public institution, the State Treasurer will pay public
depositors all losses. Losses in excess of insurance and collateral will be paid through assessments
between all QPDs. Under this method, all deposits are fully insured or collateralized with securities held
by the State Treasurer in the City’s name.
Investments
As of September 30, 2022, the City held the following investments in its governmental and proprietary
funds as categorized below in accordance with GASB Statement No. 40, Deposit and Investment Risk
Disclosure:
Investment Type Fair Value Maturity Rating
Local Government Investment Pool (*) $ 764,351 < One Year AAAm
Certificates of Deposit 313,979 < One Year N/A
(*) This amount is included in cash and cash equivalents in the accompanying financial statements due to its less
than three-month maturity.
As of September 30, 2022, the City’s Pension Funds held the following investments:
Investment Type Fair Value
Equities $ 24,257,210
Fixed Income Securities 10,629,868
Real Estate Investment Fund 8,838,121
Total $ 43,725,199
Interest Rate Risk
Section 218.415(17), Florida Statutes, limits investment maturities to provide sufficient liquidity to pay
obligations as they come due. The City minimizes interest rate risk by structuring investments to mature
to meet future operating cash requirements and investing primarily in short-term securities.
The maturity of the State Board of Administration Local Government Surplus Funds Trust Fund Florida
PRIME is based on the weighted average days to maturity (WAM). A portfolio’s WAM reflects the average
maturity in days based on the final maturity or reset date, in the case of floating rate instruments. WAM
measures the sensitivity of the portfolio to interest rate changes.
Neither the General Employees’ Retirement Plan nor the Police Officers’ and Firefighters’ Retirement Plan
have policies that limit their investment maturities as a means of managing their exposure to fair value
losses arising from increasing interest rates.
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
42
Credit Risk
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived
change in the ability of the issuer to repay its debt. Credit risk exists when there is a possibility the issuer
or other counterparty to an investment may be unable to meet its obligations. GASB Statement No. 40
requires disclosure of credit quality ratings for investments in debt securities as well as investments in
external investment pools, money market funds, and other pooled investments of fixed income securities.
The City does not have a formal policy that limits its investment choices. Unless otherwise authorized by
law or ordinance, the City is authorized under Section 218.415, Florida Statutes, to invest and reinvest
surplus public funds in its control or possession, in accordance with resolutions to be adopted from time-
to-time in:
1. The Local Government Surplus Funds Trust Fund or any intergovernmental investment pool
authorized pursuant to the Florida Interlocal Cooperation Act as provided in Chapter 163.01, Florida
Statutes.
2. Securities and Exchange Commission registered money market funds with the highest credit quality
rating from a nationally recognized rating agency.
3. Interest-bearing time deposits or savings accounts in qualified public depositories as defined in
Chapter 280.02, Florida Statutes.
4. Direct obligations of the U.S. Treasury.
5. Federal agencies and instrumentalities.
6. Rated or unrated bonds, notes, or instruments backed by the full faith and credit of the government
of Israel.
7. Other investments authorized by law or by ordinance for a county or municipality.
8. Other investments authorized by law or by resolution for a school district or a special district.
9. Securities of, or other interests in, any open-end or closed-end management type investment
company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss.80a-
1 et seq., as amended from time-to-time, provided the portfolio of such investment company or
investment trust is limited to obligations of the United States Government or any agency or
instrumentality thereof and to repurchase agreements fully collateralized by such United State
Government obligations and provided such investment company or investment trust takes delivery
of such collateral either directly or through an authorized custodian.
Less than More than
Fair Value 1 Year 1-5 Years 6-10 Years 10 Years
General Employees' Plan:
Bond Mutual Funds 5,004,704$ 5,004,704$ -$ -$ -$
Police Officers/Firefighters Plan:
Asset Backed Securities 225,093 - - - 225,093
Foreign Bonds 252,832 42,084 141,341 62,093 7,314
Government Backed Securities 1,812,070 - - 43,342 1,768,728
US Treasuries 329,835 - 266,284 63,551 -
Corporate Bonds 1,815,536 164,015 860,135 576,255 215,131
Bond Mutual Funds 1,189,798 1,189,798 - - -
Total 10,629,868$ 6,400,601$ 1,267,760$ 745,241$ 2,216,266$
Investment Maturities
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
43
As of September 30, 2022, the City’s investment in the Florida PRIME is rated AAAm by Standard &Poor’s.
As of September 30, 2022, the General Employees’ Retirement Plan portfolio consisted of investments in
securities held in total return bond funds which are not rated by Moody’s.
As of September 30, 2022, the Police Officers’ and Firefighters’ Retirement Plan portfolio consisted of U.S.
Treasury, mortgage-backed securities, and asset backed securities/commercial mortgage-backed
securities (all rated Aaa by Moody’s). Corporate bonds held ratings ranging from Aaa to Ba1. Foreign
bonds held ratings from Aa2 to Baa2.
Concentration Risk
GASB Statement No. 40 requires disclosure of the concentration of credit risk when five or more percent
of the total assets of the portfolio are invested with a single issuer.
The investment limits set aside by the City pension plans for an individual company security are
summarized below:
General Police Officers’ and
Employees’ Firefighters’
Security Retirement Plan Retirement Plan
Equities (Common Stock) 5% of Value of Plan Assets 5% of Value of Plan Assets
Fixed Income (Bonds) 5% of Value of Plan Assets 5% of Value of Plan Assets
Foreign Securities in Total
May Not Exceed 25% of Value of Plan Assets 25% of Value of Plan Assets
Fixed income investments generally must meet certain investment grading standards and equities must
be traded on a national exchange. Investments in corporate common stocks and convertible bonds are
limited to 70% of the market value of each plan’s assets. Similar grading and/or trading criteria apply to
mutual funds, money market funds, U.S. government back securities, etc. None of the above limitations
were exceeded by either plan at September 30, 2022. Investment policies are subject to a review at least
annually by the Board of Trustees for each plan.
Fair Value Measurements
The General Employees’ Retirement Plan (GERP) and the Police Officers’ and Firefighters’ Retirement Plan
(POFRP) 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. Level 1 inputs are quoted inactive markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 are significant unobservable inputs.
The following table presents the GERP assets carried at fair value at September 30, 2022.
Investment Type Amount (Level 1) (Level 2)(Level 3)
Equities 11,382,991$ 11,382,991$ -$ -$
Fixed Income 5,004,704 - 5,004,704 -
Total Investments Measured at Fair Value 16,387,695$ 11,382,991$ 5,004,704$ -$
Investments Measured at the Net
Asset Value (NAV)Amount
Real Estate Fund 4,256,841$
Total Investments 20,644,536$
General Employee Retirement Plan
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
44
The following table present the POFRP assets carried at fair value at September 30, 2022.
Note 3 - Interfund Receivables, Payables, and Transfers
All transfers are routine and are consistent with the activities of the fund making the transfer. Included
in these are intergovernmental transfers and transfers from the General Fund to the Utilities Fund to
allocate expenses in the correct fund. The following presents the interfund transfers for the year ended
September 30, 2022:
Transfers In Transfers Out
General Fund $ 787,324 $ 1,837,826
Other Governmental Funds 446,136 129,000
Utilities Fund 1,637,699 1,045,629
Sanitation Fund - 100,000
Other Enterprise Funds 238,162 513
General Fixed Assets 3,647 -
Total $ 3,112,968 $ 3,112,968
Interfund receivables and payables include the following at September 30, 2022:
Interfund Interfund
Receivable Payable
General Fund $ 374,097 $ -
Other Governmental Funds - 301,771
Other Enterprise Funds - 72,326
Total $ 374,097 $ 374,097
The $301,771 represents short-term borrowing by the Community Redevelopment Agency and the CDBG
fund from the General Fund for costs were expended in advance of receiving reimbursement from a
granting agency. The $72,326 represents cost reimbursements owed by Crestview Unlimited to the
General Fund at year-end.
During the fiscal year, the City purchased golf carts and related equipment on behalf of Crestview
Unlimited totaling $555,953. Two intercompany loans were entered into between Crestview Unlimited
and the City to repay the City over a period of 5 years including interest of 3.991%. These intercompany
loans are being treated as operating leases for accounting purposes and are not included in the interfund
receivables and payables balances presented above. The City expects Crestview Unlimited to repay the
loans as cash flow permits. As of September 30, 2022, the principal balances owed on the loans totaled
$555,953 and unpaid interest totaled $8,964.
Investment Type Amount (Level 1) (Level 2)(Level 3)
Equities 12,874,219$ 12,874,219$ -$ -$
Fixed Income 5,625,164 - 5,625,164 -
Total Investments Measured at Fair Value 18,499,383$ 12,874,219$ 5,625,164$ -$
Investments Measured at the Net
Asset Value (NAV)Amount
Real Estate Fund 4,581,280$
Total Investments 23,080,663$
Police Officers' and Firefighters' Employee Retirement Plan
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NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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Note 4 - Receivables
Receivables at September 30, 2022, were as follows:
Note 5 - Capital Assets
Changes in capital assets of the government-type activities are summarized as follows:
Governmental
Activities
General Utilities Sanitation Stormwater Crestview
Fund Fund Fund Fund Unlimited Total
Franchise Fees 210,049$ -$ -$ -$ -$ 210,049$
Utility Services 257,094 - - - - 257,094
Accounts Receivable 18,592 470,825 273,400 21,383 8,362 792,562
Unbilled Receivables - 627,823 353,150 - - 980,973
Less: Allowance for Doubtful Accounts - (45,000) (25,000) - - (70,000)
Receivables, Net 485,735$ 1,053,648$ 601,550$ 21,383$ 8,362$ 2,170,678$
Business-Type Activities
Primary Government Beginning Balance Increases (Decreases)Ending Balance
Governmental Activities
Capital Assets Not Being Depreciated:
Land 3,758,127$ 23,000$ -$ 3,781,127$
Construction in Progress 8,490,490 3,466,384 - 11,956,874
Total Capital Assets Not Being Depreciated 12,248,617 3,489,384 - 15,738,001
Capital Assets Being Depreciated:
Buildings 8,394,828 400,118 - 8,794,946
Improvements Other than Buildings 8,203,676 135,486 - 8,339,162
Infrastructure 15,071,839 347,068 - 15,418,907
Machinery and Equipment 9,002,301 1,042,007 - 10,044,308
Leased Equipment 1,591,177 531,526 - 2,122,703
Intangible Assets - Software 1,007,202 - - 1,007,202
Total Capital Assets Being Depreciated 43,271,023 2,456,205 - 45,727,228
Less Accumulated Depreciation:
Buildings (3,218,764) (164,764) - (3,383,528)
Improvements Other than Buildings (5,387,566) (304,409) - (5,691,975)
Infrastructure (8,966,270) (349,160) - (9,315,430)
Machinery and Equipment (6,441,291) (558,399) - (6,999,690)
Leased Equipment (521,842) (243,944) - (765,786)
Intangible Assets - Software (584,189) (181,296) - (765,485)
Total Accumulated Depreciation (25,119,922) (1,801,972) - (26,921,894)
Total Capital Assets Being Depreciated, Net 18,151,101 654,233 - 18,805,334
Governmental Activities Capital
Depreciated, Net 30,399,718$ 4,143,617$ -$ 34,543,335$
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities
General Government $ 333,507
Public Safety 730,623
Transportation 461,686
Culture and Recreation 275,702
Human Services 454
Total Depreciation Expense
Governmental Activities $ 1,801,972
Business-Type Activities
Utilities $ 1,901,352
Stormwater 4,667
Total Depreciation Expense
Business-Type Activities $ 1,906,019
Note 6 - Non-Current Liabilities
The following is a summary of changes in long-term debt and other liabilities of the City:
Primary Government Beginning Balance Increases (Decreases)Ending Balance
Business-Type Activities
Capital Assets Not Being Depreciated:
Land 2,711,370$ -$ -$ 2,711,370$
Construction in Progress 6,042,657 4,324,030 (2,567,573) 7,799,114
Total Capital Assets Not Being Depreciated 8,754,027 4,324,030 (2,567,573) 10,510,484
Capital Assets Being Depreciated:
Buildings 8,954,298 - - 8,954,298
Improvements Other than Buildings 3,635,890 - - 3,635,890
Infrastructure 36,401,111 475,498 - 36,876,609
Machinery and Equipment 7,028,362 3,060,853 (9,887) 10,079,328
Leased Equipment 121,274 301,368 (24,255) 398,387
Total Capital Assets Being Depreciated 56,140,935 3,837,719 (34,142) 59,944,512
Less Accumulated Depreciation:
Buildings (4,849,756) (184,110) - (5,033,866)
Improvements Other than Buildings (1,575,869) (179,437) - (1,755,306)
Infrastructure (11,429,254) (723,313) - (12,152,567)
Machinery and Equipment (4,578,473) (768,295) - (5,346,768)
Leased Equipment (8,015) (50,864) 1,603 (57,276)
Total Accumulated Depreciation (22,441,367) (1,906,019) 1,603 (24,345,783)
Total Capital Assets Being Depreciated, Net 33,699,568 1,931,700 (32,539) 35,598,729
Total Business-Type Activities
Capital Assets, Net 42,453,595$ 6,255,730$ (2,600,112)$ 46,109,213$
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
Direct Borrowings:
Leases 936,328$ 526,277$ (318,873)$ 1,143,732$ 651,998$
Other Debt:
Revenue Bonds 11,505,577 2,575,000 (858,390) 13,222,187 1,287,345
Plus Deferred Amounts for Issuance
Premium 44,400 - (2,220) 42,180 -
Compensated Absences 993,084 91,524 - 1,084,608 271,152
Other Postemployment Benefits 1,691,795 96,036 - 1,787,831 -
Net Pension Liability 458,939 8,987,841 - 9,446,780 -
Total Governmental Activities 15,630,123$ 12,276,678$ (1,179,483)$ 26,727,318$ 2,210,495$
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CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
47
Description of Long-Term Debt and Other Liabilities Outstanding:
Governmental Activities
Current Long-Term Total
Revenue Bonds
Public Improvement Refunding Bonds, Series 2015
Issued $3,165,000, interest ranges from 1.2% to 4%.
Principal and interest payments due annually on
March 1, matures in September 2041. Secured and
payable from the public service taxes, franchise fees,
communication services taxes and the local
government half-cent sales tax. Funds used for the
purpose of retiring the City’s Public Improvement
Revenue Bonds, Series 2001 and Series 2008. $ 215,000 $ 1,890,000 $ 2,105,000
Capital Improvement Revenue Bonds, Series 2020
Issued $10,348,358, bearing an interest rate of 2.15%.
Interest is payable semi-annually and annual principal
payments are due on June 1, matures in June 2030.
Secured and payable from the local government half-
cent sales tax and non-ad valorem revenues. Of the
original issue amount, $1,125,863 due June 2029 and
$1,145,027 due June 2030 is not secured by the
half-cent sales tax. Funds used for the purpose of
capital outlay purchases. 977,345 7,564,842 8,542,187
Capital Improvement Revenue Bonds, Series 2022
Issued $2,575,000, bearing an interest rate of 3.07%.
Interest is payable semi-annually and annual principal
payments are due on June 1, matures in June 2042.
Secured and payable from non-ad valorem revenues.
Funds used for the purpose of acquisition, construction
And equipping of capital improvements at the golf club. 95,000 2,480,000 2,575,000
Unamortized Premium on Bond Refunding - 42,180 42,180
Total Revenue Bonds – Governmental Activities $ 1,287,345 $ 11,977,022 $ 13,264,367
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Business-Type Activities
Direct Borrowings:
State Revolving Loans 8,518,775$ -$ (762,776)$ 7,755,999$ 782,409$
Leases 95,027 301,368 (78,933) 317,462 100,891
Other Debt:
Revenue Bonds 10,974,423 5,075,000 (361,610) 15,687,813 577,655
Less Deferred Amounts for Issuance
Discount (245,573) - 18,756 (226,817) -
Compensated Absences 227,413 - (21,886) 205,527 50,340
Other Postemployment Benefits 284,129 23,708 - 307,837 -
Net Pension Liability - 1,576,135 - 1,576,135 -
Total Business-Type Activities 19,854,194$ 6,976,211$ (1,206,449)$ 25,623,956$ 1,511,295$
Page 58 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
48
Business-Type Activities
Current Long-Term Total
State Revolving Loans – Direct Borrowings
State revolving loan payable (2008) of $7,068,015,
due in semi-annual payments of $230,172, through
June 15, 2028, bearing an interest rate of 2.53%,
secured by anticipated net water and sewer
system revenues. $ 398,390 $ 2,149,364 $ 2,547,754
State revolving loan payable (2010) of $890,026,
due in semi-annual payments of $29,486, through
July 15, 2032, bearing an interest rate of 2.86%;
secured by anticipated net water and sewer
system revenues. 44,710 465,029 509,739
State revolving loan payable (2013) of $7,283,055,
due in semi-annual payments of $228,485, through
August 15, 2034, bearing an interest rate of 2.55%;
secured by anticipated net water and sewer
system revenues. 339,308 4,359,198 4,698,506
Total Revolving Loans – Business-Type Activities $ 782,408 $ 6,973,591 $ 7,755,999
Revenue Bonds
Water and Sewer Refunding and Improvement
Revenue Bonds, Series 2015
Issued $6,650,000, interest ranges 2.1% to 4%.
Interest is payable semi-annually and annual
principal payments are due on March 1, matures
in September 2033, secured by anticipated net
water and sewer system revenues. Funds used
for the purpose of retiring the Water and Sewer
Revenue Bonds, Series 2008. $ 290,000 $ 6,010,000 $ 6,300,000
Water and Sewer Refunding and Improvement
Revenue Bonds, Series 2016
Issued $5,450,000, interest ranges 2.4% to 4%.
Interest is payable semi-annually and annual
principal payments are due on March 1, matures
in September 2038, secured by anticipated net
water and sewer system revenues. Funds used
for the purpose of retiring the Water and Sewer
Revenue Bonds, Series 2008. 40,000 3,900,000 3,940,000
Page 59 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
49
Current Long-Term Total
Capital Improvement Revenue Bonds, Series 2020
Issued $451,652 bearing an interest rate of 2.15%.
Interest is payable semi-annually and annual
principal payments are due on June 1, matures
in June 2030. Secured and payable from the
local government half-cent sales tax and non-
ad valorem revenues. Of the original issue
amount, $49,137 due June 2029 and $49,973
due June 2030 is not secured by the half-cent
sales tax. Funds used for the purposes of
retiring a capital lease. $ 42,655 $ 330,158 $ 372,813
Water and Sewer Revenue Bonds, Series 2021
Issued $5,075,000 bearing an interest rate of 2.09%.
Interest is payable semi-annually and annual
principal payments are due on September 1, matures
in September 2042, secured by anticipated net
water and sewer system revenues. Funds used
for the purpose of water and sewer system
improvements. 205,000 4,870,000 5,075,000
Unamortized Discount on Bond Refunding - (226,817) (226,817)
Total Revenue Bonds – Business-Type Activities $ 577,655 $ 14,883,341 $ 15,460,996
Annual Requirements to Amortize Debt Outstanding
The annual requirements to amortize all debt outstanding except compensated absences and other
postemployment benefits as of September 30, 2022, are as follows:
Default Provisions
The City’s revenue bonds contain a provision that in an event of a default, any trustee or any holder of
bonds may by suit, action, mandamus or other proceedings, protect and enforce any and all rights under
the laws of the State of Florida. The Capital Improvement Revenue Bonds, Series 2020 contains an
additional provision obligating the City to pay all costs related to the collection and enforcement of the
default, including attorneys’ fees.
Year Ending
September 30 Principal Interest Principal Interest Total
2023 1,287,345$ 333,251$ 1,360,064$ 648,965$ 3,629,625$
2024 1,181,299 300,721 1,401,247 611,065 3,494,332
2025 1,233,999 274,203 1,439,205 571,999 3,519,406
2026 1,258,372 246,552 1,481,021 531,847 3,517,792
2027 1,267,954 218,106 1,388,175 490,296 3,364,531
2028-2032 4,423,218 669,978 8,258,565 1,833,088 15,184,849
2033-2037 1,240,000 348,523 5,945,535 742,380 8,276,438
2038-2042 1,330,000 118,590 2,170,000 118,721 3,737,311
TOTAL 13,222,187$ 2,509,924$ 23,443,812$ 5,548,361$ 44,724,284$
Governmental Activities Business-Type Activities
Page 60 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
50
The City’s state revolving loans contain provisions that in an event of a default, the City may be required
to do one of the following: (1) Account for all moneys received from the Florida Department of
Environmental Protection (the Department) as well as the receipt, use, application or disposition of
pledged revenues; (2) use an appointed receiver to manage the water and sewer systems, including
establishing and collecting fees and charges to reduce the City’s obligation; (3) pay the delinquent amount
plus a penalty from unobligated funds due to the City; (4) notify financial market credit rating agencies;
or (5) the Department may sue for payment or accelerate the repayment schedule.
The City’s capital lease agreements contain a provision that in the event of a default, the City shall pay
total outstanding amounts due by acceleration, including costs incurred by the lessor associated with the
default. The lessor may also request the return of the leased property.
Pledged Revenues
Pledged revenues on the City’s outstanding debt for the year ended September 30, 2022 are as follows:
Note 7 - Refundings of Debt
Advance Refunding of Debt
The City issued refunding revenue bonds to defease certain outstanding bonds for the purpose of
consolidation at lower interest rates. The City placed the proceeds from those refunding bonds in
irrevocable escrow accounts with a trust agent to insure payment of debt service on the refunded bonds.
Accordingly, the trust account assets and the liabilities for the defeased bonds are not included in the
City’s financial statements. Although defeased, the refunded debt from these earlier issues will not be
actually retired until the call dates have come due or until maturity if they are not callable issues.
During the year ended September 30, 2016, the City issued $6,650,000 Water and Sewer System
Refunding Revenue Bonds, Series 2015 and $5,450,000 of Water and Sewer Refunding and Improvement
Bonds, Series 2016, to advance refund $10,070,000 of Water System Revenue Bonds, Series 2008. The
difference between the acquisition price and the net carrying value is reported as a deferred loss on bond
refunding in the accompanying financial statements and is being charged to operations through the year
2039 using the straight-line amortization method.
Principal Pledged Estimated
Pledged Original Outstanding and Interest Revenue Percentage
Pledged Revenue Source Debt Issue Through Amount Balance Payments Received Pledged
Net Water and Sewer Utility
Revenues State Revolving Loan - 2008 2028 7,068,015$ 4,698,506$ 456,970$
State Revolving Loan - 2010 2032 890,026 2,547,754 460,344
State Revolving Loan - 2013 2034 7,283,055 509,739 58,972
Water and Sewer Refunding Revenue Bonds, Series 2015 2033 6,650,000 6,300,000 282,986
Water and Sewer Refunding Revenue Bonds, Series 2016 2038 5,450,000 3,940,000 389,488
Water and Sewer Refunding Revenue Bonds, Series 2021 2042 5,075,000 5,075,000 74,837
1,723,597 2,782,943 61.9%
Public Service Taxes, Franchise Fees, Communications
Services Taxes, 1/2 Cent Sales Tax Public Improvement Refunding, Series 2015 2041 3,165,000 2,105,000 283,741 5,740,773 4.9%
1/2 Cent Sales Tax, Non-Ad Valorem Revenues;Capital Improvement Revenue Bonds,
Except That $1,125,863 Due June 2029 and $1,145,027 Due Series 2020 (Governmental)2030 10,348,358 8,542,187 857,544 3,144,294 27.3%
June 2030 is Not Secured by the 1/2 Cent Sales Tax
1/2 Cent Sales Tax, Non-Ad Valorem Revenues;Capital Improvement Revenue Bonds, Series 2020 (Utility)2030 451,652 372,813 50,520 137,232 36.8%
Except that $49,137 Due June 2029 and $49,973 Due
June 2030 is Not Secured by the 1/2 Cent Sales Tax
Non-Ad Valorem Revenues Capital Improvement Revenue Bonds, Series 2022 2042 2,575,000 2,575,000 70,928 6,354,041 1.1%
Page 61 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
51
At September 30, 2022, the City has $8,360,000 of bonds outstanding that are considered to be defeased.
Note 8 - Leases
The City leases its fleet of vehicles and two fire trucks. The City’s leased assets and accumulated
amortization are included in Note 5 Capital Assets. Lease agreements in which the City is a lessee are
summarized below.
Principal and Interest requirements to maturity are presented below.
Note 9 - Defined Benefit Pension Plans
The City administers two defined benefit pension plans: the Crestview General Employees’ Retirement
Plan Trust Fund and the Crestview Police Officers’ and Firefighters’ Plan Trust Fund. These plans provide
benefits for all qualifying employees of the City. Each plan is administered by a five-person retirement
committee consisting of two members appointed by the City Council, two elected members of the Plan
and a fifth member elected by the other four and appointed by the City Council. The Plans do not issue
separate financial statements.
Governmental Activities
Lease Lease Initial Outstanding
Inception End Payment Interest Lease Balance
Description Date Date Amount Rate Liability 9/30/2022
2 Fire Trucks 5/23/2016 6/23/2023 $109,590 Annual*2.89%897,927$ 360,280$
43 Vehicles Various 48 Month Terms $26,052 Monthly 3.65-3.80%1,144,866 783,452
Total Lease Agreements - Governmental Activities 2,042,793$ 1,143,732$
*A balloon payment of $261,885 is also required on 6/23/2023.
Business-Type Activities
Lease Lease Initial Outstanding
Inception End Payment Interest Lease Balance
Description Date Date Amount Rate Liability 9/30/2022
15 Vehicles Various 48 Month Terms $9,180 Monthly 3.65-3.80%398,387$ 317,462$
Total Lease Agreements - Business-Type Activities 398,387$ 317,462$
Year Ending
September 30 Principal Interest Total
2023 651,998$ 32,096$ 684,094$
2024 285,459 20,453 305,912
2025 150,159 10,759 160,918
2026 56,116 4,021 60,137
TOTAL 1,143,732$ 67,329$ 1,211,061$
Governmental Activities
Year Ending
September 30 Principal Interest Total
2023 100,891$ 9,273$ 110,164$
2024 100,891 9,273 110,164
2025 78,971 7,258 86,229
2026 36,709 3,374 40,083
TOTAL 317,462$ 29,178$ 346,640$
Business-Type Activities
Page 62 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
52
General Employees’ Retirement Plan (GERP)
The Crestview General Employees’ Retirement Plan Trust Fund is the administrator of a single employer
public employee retirement system established by the City. It is mandatory that all full-time general
employees of the City participate in the Plan. GERP provides retirement benefits and reduced early
retirement benefits, as well as death and disability benefits. All benefits vest after 10 years of credited
service.
Employees who retire at or after age 55 with 10 years of credited service are entitled to an annual
retirement benefit, payable monthly, of 2.64% of Average Final Compensation for year of credited service
plus $215 per month. This benefit is paid in the form of a Life Annuity (options available). Employees who
have attained age 50 and completed 10 years of credited service are eligible for early retirement and may
elect to receive an immediate actuarially reduced benefit. Disability benefits are also provided at a
reduced benefit amount for qualifying employees determined by the Board to be totally and permanently
disabled. Benefit provisions are established by the Trust Instrument. Any amendments to the Plan are
accomplished through revision and amendment of City Ordinances.
The Plan includes a provision for a deferred retirement option plan (DROP). A member becomes eligible
when normal retirement requirements are satisfied. The member may not participate in the DROP for
more than 60 months. The average daily balance in a member’s DROP account shall be credited or debited
at a rate equal to the actual net rate of investment return, net of brokerage commissions, transaction
costs and management fees. Upon entering the DROP, the members shall not accrue any additional
credited service or additional benefits and shall not be permitted to again contribute to the System. All
benefits payable to a member from the DROP shall be paid from the assets of the member’s DROP account
and neither the City nor the Board shall have a duty or liability to furnish the DROP with any funds,
securities or other assets except to the extent required by any applicable law. The DROP balances as of
September 30, 2022, were $542,340.
Police Officers’ and Firefighters’ Retirement Plan (POFRP)
The Crestview Police Officers’ and Firefighters’ Retirement Plan Trust Fund is the administrator of a single
employer public employee retirement system established by the City. It is mandatory that all full-time
City police officers and firefighters participate in the plan.
The POFRP provides retirement benefits and reduced early retirement benefits as well as death and
disability benefits. All benefits vest after 10 years of credited service. Employees who retire at or after
age 55 with 10 years of credited service or age 52 with 25 years of credited service are eligible for normal
retirement and are entitled to an annual retirement benefit, payable monthly, of three and one-fifth
percent (3.2%) of Average Final Compensation times credited service. This benefit is paid in the form of
a Ten Year Certain and Life Annuity (options available). Employees who have attained age 45 and
completed 10 years of credited service are eligible for early retirement and may elect to receive a benefit
reduced 3% for each year that early retirement precedes age 50 and actuarially reduced accordingly.
Disability benefits are also provided at a reduced benefit amount for qualifying employees determined by
the Board to be totally and permanently disabled. Benefit provisions are established by the Trust
Instrument. The State also contributes to the Plan. Any amendments to the Plan are accomplished
through revision and amendment of City Ordinances.
Page 63 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
53
The Plan includes a provision for a deferred retirement option plan (DROP). A member becomes eligible
when normal retirement requirements are satisfied. The member may not participate in the DROP for
more than 60 months. An eligible member which elects to enter the DROP can select either: 1) actual
net rate of investment return, net of brokerage commissions, transaction costs and management fees or
2) interest at an effective rate of 6.5% per annum compounded monthly on the prior month’s ending
balance. Upon entering the DROP, the member shall not accrue any additional credited service or
additional benefits and shall not be permitted to again contribute to the System. All benefits payable to
a member from the DROP shall be paid only from the assets of the member’s DROP account and neither
the City nor the Board shall have a duty or liability to furnish the DROP with any funds, securities or other
assets except to the extent required by any applicable law. The DROP balances as of September 30, 2022,
were $231,117.
Membership of each plan consisted of the following on September 30, 2022, the date of the latest
actuarial report.
GERP POFRP
Active Plan Members 124 87
Inactive Plan Members:
Receiving Benefits 66 30
Entitled to but Not Receiving Benefits 36 12
Total 226 129
Contributions
The contribution requirements of plan members and the City are established annually and amended by
City ordinance. Plan members are required to contribute a set percentage of their annual covered
salaries. The City is required to contribute at an actuarially determined rate.
Investments
The following was the Board’s adopted asset allocation policy as of September 30, 2022:
Target
Asset Class Allocation
Domestic Equity 42.5%
International Equity 15.0%
Broad Market Fixed Income 22.5%
Fixed Income (Non-Core) 2.5%
Global Fixed Income 2.5%
Real Estate 10.0%
Infrastructure 5.0%
100%
The Plans did not hold investments in any one organization that represent 5% or more of the Pension
Plans’ fiduciary net position.
For the year ended September 30, 2022, the annual money-weighted rate of return on the GERP and
POFRP investments, net of pension plan investment expenses, was (13.31%) and (13.30%), respectively.
More information about the Plan’s investments is discussed in Note 2.
Page 64 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
54
Net Pension Liability of the Sponsor
The components of the net pension liability of the sponsor on September 30, 2022, were as follows:
GERP POFRP
Total Pension Liability $ 26,027,030 $ 29,627,739
Plan Fiduciary Net Position (20,856,762) (23,775,092)
Sponsor’s Net Pension Liability $ 5,170,268 $ 5,852,647
Plan Fiduciary Net Position as a
Percentage of Total Pension
Liability 80.14% 80.25%
Differences between plan fiduciary net position presented above and the amounts presented in the financial
statements are due to certain accruals which are the result of timing differences. These differences are not
considered to be significant.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended September 30, 2022, the City recognized pension expense of $1,370,830 for the GERP
and $2,034,131 for the POFRP. At September 30, 2022, the City reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Amounts reported as deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Ended
September 30, GERP POFRP
2023 $ 927,772 $ 977,802
2024 865,058 781,923
2025 841,917 875,349
2026 1,134,486 1,388,388
2027 - 23,464
Total $ 3,769,233 $ 4,046,926
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2021 updated to
September 30, 2022, using the following actuarial assumptions applied to all measurements periods.
GERP POFRP
Inflation 2.50% 2.50%
Investment Rate of Return 7.00% 7.00%
Discount Rate 7.00% 7.00%
Projected Salary Increases Service based Age based
Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources Resources Resources
Difference Between Expected and
Actual Experience 728,009$ 39,487$ 546,716$ 160,951$ 1,274,725$ 200,438$
Changes in Assumptions 646,008 - 858,598 36,240 1,504,606 36,240
Difference Between Projected and
Actual Earnings on Investments 2,434,703 - 2,838,803 - 5,273,506 -
Balance as of September 30, 2022 3,808,720$ 39,487$ 4,244,117$ 197,191$ 8,052,837$ 236,678$
GERP POFRP Total
Page 65 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
55
GERP: PubG.H-2010 Mortality Table for healthy active lives for employees (set back one year for males ),
healthy retiree lives (set back one year for males), beneficiary lives for healthy retirees (set back one year
for males), and disabled lives (set forward three years).
POFRP: PubS.H-2010 Mortality Table (Below Median) for healthy active lives for female and male
employees set forward one year. PubS.H-2010 Mortality Table for healthy retirees for female and male
retirees set forward one year. PubG.H-2010 Mortality Table for beneficiary lives for healthy retirees set
back one year for males. 80% PubG.H-2010/20% PubS.H-2010 Mortality Tables for disabled retirees.
All rates are projected generationally with Mortality Improvement Scale MP-2018.
The previously described mortality assumption rates were mandated by Chapter 2015 -157, Laws of
Florida. This law mandates the use of the assumptions used in either of the two most recent valuations
of the Florida Retirement System (FRS). The above rates are those outlined in Milliman’s July 1, 2021 FRS
valuation report for non-special-risk employees, with appropriate adjustments made based on plan
demographics.
The actuarial assumptions used in the October 1, 2021 valuation were based on the results of an actuarial
experience study dated November 30, 2021 for GERP and November 24, 2021 for POFRP.
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, 2022 (see the discussion of the pension plan’s investment policy) are
summarized in the following table:
Asset Class GERP POFRP
Domestic Equity 7.50% 7.50%
International Equity 8.50% 8.50%
Broad Market Fixed Income 2.50% 2.50%
Fixed Income (Non-Core) 2.50% 2.50%
Global Fixed Income 3.50% 3.50%
Real Estate 4.50% 4.50%
Infrastructure 4.50% 4.50%
Discount Rate
The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used
to determine the discount rate assumed that the employee contributions will be made at the current
contribution rate and that the City’s contributions will be made at rates equal to the difference between
the actuarially determined contribution rates and the employee rate. Based on those assumptions, the
pension plan’s fiduciary net position was projected to be available to make all projected future benefit
payments of current employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
Page 66 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
56
GERP POFRP
1% Decrease of Discount Rate to 6.00% for GERP and POFRP $ 8,580,609 $ 9,861,413
Current Discount Rate of 7.00% for GERP and POFRP 5,170,268 5,852,647
1% Increase of Discount Rate to 8.00% for GERP and POFRP 2,358,662 2,564,222
Changes in Net Pension Liability – GERP
Change in Net Pension Liability – POFRP
The City has allocated the net pension liabilities above across funds based on payroll costs of each fund.
The City’s net pension liabilities are reported as follows:
GERP POFRP
Net Pension Net Pension
Liability Liability
Governmental Activities $ 3,594,133 $ 5,852,647
Business-Type Activities 1,576,135 -
Total $ 5,170,268 $ 5,852,647
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability (Asset)
Balance at September 30, 2022 24,447,463$ 24,618,572$ (171,109)$
Changes for the Year:
Service Cost 738,764 - 738,764
Interest 1,707,653 - 1,707,653
Difference Between Expected and Actual Experience 715,508 - 715,508
Contribution - Employer - 772,579 (772,579)
Contribution - Employee - 380,383 (380,383)
Net Investment Income - (3,251,481) 3,251,481
Benefit Payments, Including Refunds of Employee
Contributions (1,582,358) (1,582,358) -
Administration Expense - (80,933) 80,933
Balance at September 30, 2022 26,027,030$ 20,856,762$ 5,170,268$
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at September 30, 2022 27,375,803$ 26,916,864$ 458,939$
Changes for the Year:
Service Cost 865,242 - 865,242
Interest 1,946,306 - 1,946,306
Share Plan Allocation 172,965 - 172,965
Difference Between Expected and Actual Experience 140,783 - 140,783
Contribution - Employer - 653,302 (653,302)
Contribution - State - 423,143 (423,143)
Contribution - Employee - 329,224 (329,224)
Net Investment Income - (3,579,721) 3,579,721
Benefit Payments, Including Refunds of Employee
Contributions (873,360) (873,360) -
Administration Expense - (94,360) 94,360
Balance at September 30, 2022 29,627,739$ 23,775,092$ 5,852,647$
Page 67 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
57
Pension expense for the year ending September 30, 2022, was as follows:
Governmental Activities $ 2,987,069
Business-Type Activities 417,892
Total $ 3,404,961
Note 10 - Other Postemployment Benefit Plan
GASB Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits
Other Than Pensions (Statement No. 75), requires governments to account OPEB on an accrual basis,
rather than on a pay-as-you-go basis. The effect is the recognition of an actuarially determined expenses
when a future retiree earns their postemployment benefits, rather than when they use their
postemployment benefits. The total OPEB liability is recorded at the fund level for proprietary activities
and the allocated amount for governmental activities is presented at the government-wide level. The
annual OPEB cost is included in the line item of personal services for proprietary fund statements and is
allocated by function for governmental activities on the government-wide financial statements.
Plan Description
The City of Crestview’s Retiree Health Care Plan (Plan) is a single employer defined benefit
postemployment health care plan that covers eligible retired employees of the City. The Plan, which is
administered by the City, allows employees who retire and meet retirement eligibility requirements under
one of the City’s retirement plans to continue medical and life insurance coverage as a participant in the
City’s plan. For purposes of applying Paragraph 4 under Statement No. 75, the Plan does not meet the
requirements for an OPEB plan administered through a trust. The Plan does not issue a stand-alone
report, and it is not included in the report of a Public Employee Retirement System or another entity.
Employees Covered by Benefit Terms
At September 30, 2020 (the most recent actuarial valuation), the following employees were covered by
the benefit terms:
Active Plan Members 207
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 4
Inactive Plan Members Entitled to but Not Yet Receiving Benefits -
Total 211
Benefits Provided
A retired employee and his or her spouse are eligible to continue health insurance identical to active
employees if they meet the eligibility for retirements under the applicable Plan. The retiree is responsible
for paying the entire premium for health coverage and that of any covered spouse or eligible dependents.
Total OPEB Liability
At September 30, 2022, the City reported total OPEB liability of $2,095,668 for the single-employer plan.
Total OPEB liability was measured as of September 30, 2020. The measurement period for OPEB expense
was October 1, 2020 through September 30, 2021.
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of September 30, 2020, using the
following actuarial assumptions:
Page 68 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
58
Inflation Rate 2.50%
Salary Increase Rate(s) Varies by Service
Discount Rate 2.43%
Initial Trend Rate 7.00%
Ultimate Trend Rate 4.00%
Years to Ultimate 54
All mortality rates were based on those used in actuarial valuations of corresponding General Employee
and Police and Fire pension plans.
For general employees, mortality rates were based on the PubG-2010 tables. For female lives, 100% of
the white-collar table was used. For active lives, headcount weighted employee mortality with male rates
set back one year, projected generationally with Scale MP-2018. For healthy inactive lives and
beneficiaries, headcount weighted healthy retiree mortality with male rates set back one year, projected
generationally with Scale MP-2018. For disabled lives, weighted mortality with male and female rates set
forward three years, projected generationally with Scale MP-2018.
For police and fire employees, mortality rates were also based on PubS-2010 tables. For female lives,
100% of the white-collar table was used. For active lives, headcount weighted employee mortality, below
median income, with male and female rates set forward one year projected generationally with Scale MP-
2018. For healthy inactive lives, headcount weighted healthy retiree mortality with both male and female
rates set forward one year, projected generationally with Scale MP-2018. For beneficiaries, headcount
weighted healthy retiree mortality with male rates set back one year, projected generationally with Scale
MP-2018. For disabled lives, headcount weighted disabled retiree tables and 20% of PubS-2010
headcount weighted disabled retiree tables, projected generationally with Scale MP-2021.
Discount Rate
Given the City’s decision not to fund the program, all future benefit payments were discounted using a
high-quality municipal bond rate of 2.43%. The high-quality municipal bond rate was based on the S&P
Municipal Bond 20 Year High Grade Rate Index as published by S&P Dow Jones Indices nearest the
measurement date. The S&P Municipal 20 Year High Grade Rate Index consists of bonds in the S&P
Municipal Bond Index with a maturity of 20 years. Eligible bonds must be rated at least AA by Standard
and Poor’s Rating Services, Aa2 by Moody’s or AA by Fitch. If there are multiple ratings, the lowest rating
is used.
Increase
(Decrease in
Total OPEB
Liability
Balance as of October 1, 2021 $ 1,975,924
Changes for the Year:
Service Cost 188,921
Interest 45,777
Changes of Assumptions (63,227)
Benefit Payments (51,727)
Balance as of September 30, 2022 $ 2,095,668
Page 69 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
59
Changes of assumptions reflect a change in the discount rate from 2.14% for the reporting period ended
September 30, 2021 to 2.43% for the reporting period ended September 30, 2022.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the
current discount rate.
1% Current 1%
Decrease Discount Rate Increase
(1.43%) (2.43%) (3.43%)
Total OPEB Liability $ 2,322,379 $ 2,095,668 $ 1,892,664
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1% point lower or 1%point higher
than the current discount rate.
1% Current 1%
Decrease Discount Rate Increase
(3%-6.5%) (4%-7.5%) (5%-8.5%)
Total OPEB Liability $ 1,812,547 $ 2,095,668 $ 2,437,209
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2022, the City recognized OPEB expense of $262,099. At September 30,
2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources:
Deferred Deferred
Outflows Outflows
of Resources of Resources
Differences Between Expected and Actual
Experience $ - $ 156,531
Changes in Assumptions 414,709 104,160
Employer Contributions Subsequent to the
Measurement Date 59,468 -
Total $ 474,177 $ 260,691
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in OPEB expense as follows:
Year Ending
September 30, Amount
2023 $ 18,101
2024 18,101
2025 18,098
2026 28,235
2027 45,248
Thereafter 26,235
Total $ 154,018
Page 70 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
60
Note 11 - Risk Management
The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; employee medical benefits and natural disasters. The City
purchases insurance through commercial carriers and participates in the Florida Municipal Insurance
Trust, which is a public entity risk pool. Coverage through the Florida Municipal Insurance Trust includes
comprehensive general and professional liability, automobile, property and workers’ compensation
coverages. The remaining insurance coverage, which includes but is not limited to health and life
insurance coverages, is purchased from various commercial carriers.
The City does not retain a risk of loss as a participant in the public entity risk pool. The City maintains
minimal deductibles for insurance policies from its various commercial carriers. There has been no
significant reduction in insurance coverage from the prior fiscal year. Settlement amounts have not
exceeded insurance coverage for the current year or the three prior years.
The City participates in various federal and state grants. The expenditures of these grants are subject to
audit and adjustment by the funding agency or their representatives. If expenditures are subsequently
disallowed due to noncompliance with the program, the City may be required to repay the funding agency.
The City’s management believes that disallowed expenditures, if any, will not be material to the
accompanying financial statements.
Note 12 - Fund Equity
Restricted Net Position
The City has established certain restrictions within the net position section of the enterprise funds. It is
the City’s policy to first apply restricted resources for expenditures incurred for which there are restricted
and unrestricted resources available. Additionally, the City would first apply committed, followed by
assigned amounts and lastly unassigned amounts of unrestricted fund balance when expenditures are
incurred.
Utilities
Restricted for Impact Fees $ 2,545,381
Restricted for Reserve and Replacement 250,000
Restricted for Debt Service 317,160
Total $ 3,112,541
Fund Balances
The City has established certain restrictions within the fund balance section of the governmental funds.
The City would first apply restricted, followed by assigned amounts and lastly unassigned amounts of
unrestricted fund balance when expenditures are incurred. Non-Spendable, restricted and assigned fund
balances at September 30, 2022, consist of the following:
Page 71 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
61
Note 13 - Commitments and Contingencies
Contracts
The City has contracted with CH2MHill, Inc. (CH2M) to operate, maintain and manage the City’s sewer
treatment plant. Fees are payable monthly and are subject to adjustment on a regular basis. A new
contract was signed for a five-year term commencing October 1, 2019. The agreement will automatically
renew for another five-year term ending September 30, 2024. The latest contract established a base fee
for fiscal year 2020 of $1,045,028. It also provides for electrical cost or consumption increases over an
established amount ($192,000) to be shared equally by the City and CH2M. Total fees under the contract
for the year ended September 30, 2022 were $1,034,255.
Legal Matters
The City is involved in pending and threatened legal actions. In the opinion of City management, after
consulting with legal counsel, the range of potential loss from all such claims and actions should not
materially affect the financial condition of the City.
Sanitation Collection
In September 2013, the City contracted with Waste Pro of Florida, Inc. for the collection and disposal of
residential and commercial solid waste, yard refuse and recycling. The non-exclusive franchise agreement
expired September 30, 2018. The contract was renewed and is effective through September 30, 2023.
The City is responsible for billings and collections related to the sanitation services and retains 6% of the
collections as payment for managing the collections. The remainder of the collections are remitted to
Waste Pro of Florida, Inc. Net collections remitted to Waste Pro of Florida amounted to $3,690,708 for
the year ended September 30, 2022.
Other Total
General Governmental Governmental
Fund Funds Funds
Non-Spendable
Prepaid Expenditures 241,995$ 2,298$ 244,293$
Permanent Fund - 53,285 53,285
Total Non-Spendable 241,995$ 55,583$ 297,578$
Restricted For
Impact Fees 281,813$ 48,020$ 329,833$
Debt Service 387,001 23,795 410,796
Building Permits - 1,324,426 1,324,426
Redevelopment - 474,294 474,294
Total Restricted 668,814$ 1,870,535$ 2,539,349$
Assigned For
Subsequent Year's Budget 2,575,178$ -$ 2,575,178$
Grants - 1,162 1,162
Debt Service - 283,533 283,533
Law Enforcement - 4,493 4,493
Library - 2,913 2,913
Total Assigned 2,575,178$ 292,101$ 2,867,279$
Page 72 of 138
CITY OF CRESTVIEW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
62
Grants
Amounts received or receivable from grant activities 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 amount, if
any, to be immaterial.
In September 2004, Hurricane Ivan impacted Northwest Florida, including the City with considerable
damage. Many of the expenses incurred for debris removal and other repairs were reimbursed to the
City through grant funding from the Federal Emergency Management Agency (FEMA). In 200 5, FEMA
reimbursed the City for most of the expenses incurred, but then later determined that certain expenses
did not qualify for reimbursement according to the grant. FEMA has notified the City that the City will be
responsible for those expenses determined not to be reimbursable. The City will not know the exact
amount of funds that are to be repaid to FEMA until FEMA has performed a final close-out audit. The City
has estimated the liability to FEMA for non-reimbursable expenses to be $485,655. This amount is
included in due to other governments on the accompanying financial statements.
Note 14 - Subsequent Events
Subsequent to year-end, the City entered into three clean water state revolving fund loan agreements
with the State of Florida Department of Environmental Protection for the design, planning, and
construction of a wastewater treatment facility. The planning loan amount was for $700,000 at an interest
rate of 1.84% plus a loan service fee with a repayment term of 10 years. The planning and design loan
amount was for $800,000 at an interest rate of 1.6% plus a loan service fee with a repayment term of 20
years. The construction loan amount was $5,012,000 at an interest rate of .31% plus a loan service fee
with a repayment term of 20 years.
On May 25, 2023, the City entered into a lease-purchase agreement with PNC Bank for the purchase of
two fire trucks in the amount of $1,604,094. Terms of the agreement require the City to make seven
annual payments of $221,714 and a balloon payment of $455,771 the following month of year seven.
Interest on the loan was imputed at 5.02%.
Page 73 of 138
REQUIRED SUPPLEMENTARY INFORMATION
Page 74 of 138
Reporting Period Ending 9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018
Measurement Date 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017
Total OPEB Liability
Service Cost 188,921$ 129,806$ 110,071$ 107,956$ 112,421$
Interest 45,777 56,991 55,819 48,482 39,333
Differences Between Expected
and Actual Experience - (142,530) - (99,269) -
Changes of Assumptions (63,227) 478,917 88,837 (36,901) (81,027)
Benefit Payments (51,727) (18,598) (17,220) (20,602) (18,944)
Net Change in Total
OPEB Liability 119,744 504,586 237,507 (334) 51,783
Total OPEB Liability,
Beginning of Year 1,975,924 1,471,338 1,233,831 1,234,165 1,182,382
Total OPEB Liability,
End of Year 2,095,668$ 1,975,924$ 1,471,338$ 1,233,831$ 1,234,165$
Covered Payroll (Projected)10,313,701$ 9,749,221$ 10,002,787$ 9,414,388$ 9,803,788$
Total OPEB Liability as a
Percentage of Covered
Employee Payroll 20.32%20.27%14.71%13.11%12.59%
*Information is presented for those years in which information is available.
Notes to Schedule:
September 30, 2022:2.43%
September 30, 2021:2.14%
September 30, 2020:3.58%
September 30, 2019:4.18%
September 30, 2018:3.64%
Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period.The following
are the discount rates used in each period:
Benefit Payments:The City did not provide actual net benefits for the fiscal year ended on September 30,2022.Expected net benefit
payments produced by the valuation model for the same period are shown in the table above
CITY OF CRESTVIEW, FLORIDA
LAST 10 FISCAL YEARS*
SEPTEMBER 30, 2022
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
REQUIRED SUPPLEMENTARY INFORMATION
63
Page 75 of 138
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Total Pension Liability
Service Cost 738,764$ 682,347$ 667,898$ 611,990$ 555,982$ 522,311$ 565,716$ 536,574$ 538,171$ 498,306$
Interest 1,707,653 1,622,464 1,555,250 1,518,916 1,462,086 1,336,940 1,310,682 1,240,902 1,163,671 1,085,340
Differences Between Expected
and Actual Experience 715,508 13,985 368,023 (197,435) (407,213) 557,747 (372,488) (196,887) - -
Changes in Assumptions - 1,055,199 32,218 - 570,521 585,568 152,935 - - -
Benefit Payments, Including Refund
of Employee Contributions (1,582,358) (1,245,998) (2,175,488) (800,956) (761,657) (823,522) (668,726) (806,243) (663,463) (625,281)
Net Change 1,579,567 2,127,997 447,901 1,132,515 1,419,719 2,179,044 988,119 774,346 1,038,379 958,365
Total Pension Liability, Beginning 24,447,463 22,319,466 21,871,565 20,739,050 19,319,331 17,140,287 16,152,168 15,377,822 14,339,443 13,381,078
Total Pension Liability, Ending (a)26,027,030$ 24,447,463$ 22,319,466$ 21,871,565$ 20,739,050$ 19,319,331$ 17,140,287$ 16,152,168$ 15,377,822$ 14,339,443$
Plan Fiduciary Net Position
Contributions - Employer 772,579$ 669,775$ 629,053$ 455,980$ 343,359$ 248,704$ 298,505$ 556,922$ 756,791$ 779,531$
Contributions - Employee 380,383 340,203 317,003 303,409 285,401 269,713 263,011 246,579 240,968 242,185
Net Investment Income (3,251,481) 4,035,610 1,721,236 909,926 1,522,216 2,050,466 1,172,257 (319,164) 1,396,846 1,537,348
Benefit Payments, Including Refund
of Employee Contributions (1,582,358) (1,245,998) (2,175,488) (800,956) (761,657) (823,522) (668,726) (806,243) (663,463) (625,281)
Administrative Expense (80,933) (76,073) (55,909) (58,103) (55,635) (56,085) (45,495) (43,915) (35,530) (31,453)
Other - - - - - - - - 44,105 -
Net Change (3,761,810) 3,723,517 435,895 810,256 1,333,684 1,689,276 1,019,552 (365,821) 1,739,717 1,902,330
Plan Fiduciary Net Position, Beginning 24,618,572 20,895,055 20,459,160 19,648,904 18,315,220 16,625,944 15,606,392 15,972,213 14,232,496 12,330,166
Plan Fiduciary Net Position, Ending (b)20,856,762 24,618,572 20,895,055 20,459,160 19,648,904 18,315,220 16,625,944 15,606,392 15,972,213 14,232,496
Net Pension Liability, Ending (a) - (b)5,170,268$ (171,109)$ 1,424,411$ 1,412,405$ 1,090,146$ 1,004,111$ 514,343$ 545,776$ (594,391)$ 106,947$
Plan Fiduciary Net Position as a
Percentage of the Total
Pension Liability 80.14%100.70%93.62%93.54%94.74%94.80%97.00%96.62%103.87%99.25%
Covered Employee Payroll 5,942,914$ 5,315,672$ 4,953,172$ 4,740,758$ 4,459,380$ 4,214,265$ 4,109,545$ 3,852,802$ 3,765,128$ 3,784,133$
Net Pension Liability as a Percentage
of Covered Employee Payroll 87.00%-3.22%28.76%29.79%24.45%23.83%12.52%14.17%-15.79%2.83%
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITIES AND RELATED RATIOS -
GENERAL EMPLOYEES' RETIREMENT PLAN
LAST 10 FISCAL YEARS
64
Page 76 of 138
Notes to Schedule:
Changes of Assumptions:
For measurement date 9/30/21, as a result of an Experience Study dated November 30, 2021, the Board has approved the following changes:
1. The investment return assumption was lowered from 7.25% to 7.00%, net of investment related expenses.
2. The salary increase rate assumption was changed, generally resulting in lower assumed rates.
3. The retirement rate assumption was changed, generally resulting in earlier assumed retirements.
4. The termination rate assumption was changed, generally resulting in fewer terminations.
5. The disability rate assumption was changed, reducing the rates at all ages by 33%.
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITIES AND RELATED RATIOS -
GENERAL EMPLOYEES' RETIREMENT PLAN
LAST 10 FISCAL YEARS
65
Page 77 of 138
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Total Pension Liability
Service Cost 865,242$ 855,640$ 829,996$ 810,126$ 781,326$ 736,601$ 675,767$ 650,319$ 704,926$ 645,804$
Interest 1,946,306 1,760,744 1,630,907 1,557,188 1,494,147 1,401,536 1,205,985 1,207,893 1,142,097 1,050,053
Differences Between Expected
and Actual Experience 140,783 485,335 211,677 (355,584) (254,535) 226,022 293,542 (1,131,354) - -
Changes of Benefit Terms - - - (3,124) - - - - 102,466 -
Contributions - Buy Back - - - - 18,708 - - - - -
Changes in Assumptions - 1,129,136 (72,480) - 635,050 1,144,118 337,452 - - -
Share Plan Allocation 172,965 139,291 110,280 119,721 113,414 88,474 775,763 - - -
Other - - - - - - - - 36,400 -
Change in Excess State Money - - - - - (9,059) (798,033) 102,691 110,979 -
Benefit Payments, Including Refund
of Employee Contributions (873,360) (849,648) (1,040,702) (1,228,318) (1,286,243) (1,191,193) (618,732) (933,578) (1,079,145) (334,643)
Net Change 2,251,936 3,520,498 1,669,678 900,009 1,501,867 2,396,499 1,871,744 (104,029) 1,017,723 1,361,214
Total Pension Liability, Beginning 27,375,803 23,855,305 22,185,627 21,285,618 19,783,751 17,387,252 15,515,508 15,619,537 14,601,814 13,240,600
Total Pension Liability, Ending (a)29,627,739$ 27,375,803$ 23,855,305$ 22,185,627$ 21,285,618$ 19,783,751$ 17,387,252$ 15,515,508$ 15,619,537$ 14,601,814$
Plan Fiduciary Net Position
Contributions - Employer 653,302$ 575,632$ 537,980$ 378,613$ 121,687$ 121,961$ 111,296$ 429,649$ 576,763$ 746,119$
Contributions - State 423,143 378,243 339,563 352,151 343,741 310,487 300,086 296,275 296,686 291,738
Contributions - Employee 329,224 320,388 304,695 295,647 288,434 278,697 267,931 255,354 235,503 264,486
Contributions - Buy Back - - - - 18,708 - - - - -
Net Investment Income (3,579,721) 4,307,665 1,661,513 778,906 1,519,422 2,132,311 1,072,929 (374,169) 1,512,913 1,596,346
Benefit Payments, Including Refund
of Employee Contributions (873,360) (849,648) (1,040,702) (1,228,318) (1,286,243) (1,191,193) (618,732) (933,578) (1,079,145) (334,643)
Administrative Expense (94,360) (74,336) (69,573) (62,363) (66,003) (70,281) (47,835) (46,407) (37,041) (30,354)
Other - - - - - - - - (44,105) -
Net Change (3,141,772) 4,657,944 1,733,476 514,636 939,746 1,581,982 1,085,675 (372,876) 1,461,574 2,533,692
Plan Fiduciary Net Position, Beginning 26,916,864 22,258,920 20,525,444 20,010,808 19,071,062 17,489,080 16,403,405 16,776,281 15,314,707 12,781,015
Plan Fiduciary Net Position, Ending (b)23,775,092 26,916,864 22,258,920 20,525,444 20,010,808 19,071,062 17,489,080 16,403,405 16,776,281 15,314,707
Net Pension Liability, Ending (a) - (b)5,852,647$ 458,939$ 1,596,385$ 1,660,183$ 1,274,810$ 712,689$ (101,828)$ (887,897)$ (1,156,744)$ (712,893)$
Plan Fiduciary Net Position as a
Percentage of the Total
Pension Liability 80.25%98.32%93.31%92.52%94.01%96.40%100.59%105.72%107.41%104.88%
Covered Employee Payroll 5,144,131$ 5,006,067$ 4,760,860$ 4,619,494$ 4,506,775$ 4,354,635$ 4,186,426$ 3,989,908$ 3,701,314$ 4,132,599$
Net Pension Liability as a Percentage of
Covered Employee Payroll 113.77%9.17%33.53%35.94%28.29%16.37%-2.43%-22.25%-31.25%-17.25%
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITIES AND RELATED RATIOS -
POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT PLAN
LAST 10 FISCAL YEARS
66
Page 78 of 138
Notes to Schedule:
Changes of Assumptions:
For measurement date 9/30/21, as a result of an Experience Study dated November 24, 2021, the Board has approved the following changes:
1. The investment return assumption was lowered from 7.25% to 7.00%, net of investment related expenses.
2. The salary increase rate assumption was changed, generally resulting in lower assumed rates.
3. The retirement rate assumption was changed, generally resulting in earlier assumed retirements.
4. The termination rate assumption was changed, generally resulting in fewer terminations.
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITIES AND RELATED RATIOS -
POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT PLAN
LAST 10 FISCAL YEARS
67
Page 79 of 138
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially Determined Contribution 772,579$ 669,775$ 629,053$ 497,780$ 379,047$ 248,242$ 304,106$ 473,895$ 756,791$ 779,531$
Contributions in Relation to the Actuarially
Determined Contributions 772,579 669,775 629,053 455,980 343,359 248,704 298,505 556,922 756,791 779,531
Contributions Deficiency (Excess)1,545,158$ 1,339,550$ -$ 41,800$ 35,688$ (462)$ 5,601$ (83,027)$ -$ -$
Covered Employee Payroll 5,942,914$ 5,315,672$ 4,953,172$ 4,740,758$ 4,459,380$ 4,214,265$ 4,109,545$ 3,852,802$ 3,765,128$ 3,784,133$
Contributions as a Percentage of
Covered Employee Payroll 13.00%12.60%12.70%9.62%7.70%5.90%7.26%14.45%20.10%20.60%
Notes to Schedule:
Valuation Date October 1, 2020
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Funding Method Entry age normal actuarial cost method.
Actuarial Asset Method All assets are valued at market value with an adjustment to uniformly spread actuarial investment gains and losses
over a 5-year period.
Amortization Method New UAAL amortization bases are amortized over 15 years.
Inflation 2.5% per year.
Salary Increases Service Increase
0 10.0%
1 - 2 7.5%
3 - 10 6.0%
11 - 19 5.0%
20+4.0%
Payroll Growth 1.96% for purposes of amortizing the Unfunded Actuarial Accrued Liability
Interest Rate 7.25% per year compounded annually, net of investment related expenses.
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS -
GENERAL EMPLOYEES' RETIREMENT PLAN
LAST 10 FISCAL YEARS
68
Page 80 of 138
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS -
GENERAL EMPLOYEES' RETIREMENT PLAN
LAST 10 FISCAL YEARS
Retirement Age Age Rate
55 - 57 20.0%
58 - 64 25.0%
65+100.0%
Early Retirement None.
Termination Rates See table below.
Disability Rates See table below.
Mortality Healthy Lives:
Female: PubS.H-2010 for Employees
Male: PubS.H-2010 for Employees
Disabled Lives:
PubG.H-2010 for Disabled Retirees, set forward three years
Other Information Termination Rates Table
Service Rate Service Rate
0-1 25.0%20 0.03%
2 20.0%25 0.03%
3 15.0%30 0.03%
4 10.0%35 0.03%
5 9.5%40 0.06%
6 9.0%45 0.11%
7 8.5%50 0.21%
8 8.0%55 0.45%
9 7.5%60 0.81%
10 7.0%65+1.40%
11 6.5%
12 6.0%
13 5.5%
14 5.0%
15 4.5%
16+4.0%
Disability Rates Table
69
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2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially Determined Contribution 900,223$ 815,989$ 785,542$ 632,870$ 432,650$ 326,598$ 322,355$ 542,628$ 762,470$ 929,835$
From Excess State Money Reserve - - - - - - 102,941 - - -
Contributions in Relation to the Actuarially
Determined Contributions 903,480 814,585 767,263 611,043 352,014 353,034 330,709 623,233 762,470 929,835
Contributions Deficiency (Excess)(3,257)$ 1,404$ 18,279$ 21,827$ 80,636$ (26,436)$ (111,295)$ (80,605)$ -$ -$
Covered Employee Payroll 5,144,131$ 5,006,067$ 4,760,860$ 4,619,494$ 4,506,775$ 4,354,635$ 4,186,726$ 3,989,908$ 3,701,314$ 4,132,599$
Contributions as a Percentage of
Covered Employee Payroll 17.56%16.27%16.12%13.23%7.81%8.11%7.90%15.62%20.60%22.50%
Notes to Schedule:
Valuation Date October 1, 2020
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Funding Method Frozen entry age actuarial cost method.
Actuarial Asset Method All assets are valued at market value with an adjustment to uniformly spread actuarial investment gains and losses
over a 5-year period.
Amortization Method Level of percentage of pay, closed over 20 years.
Inflation 2.5% per year.
Salary Increases For service over 25 years - 10%; For service between 25-39 years - 6.5%; For service of 40 years and over - 5.5%.
Payroll Growth 1.82% for purposes of amortizing the Unfunded Actuarial Accrued Liability.
Interest Rate 7.25% per year compounded annually, net of investment related expenses.
Normal Retirement Age For 10-24 years of service age 55-56, a rate of 50% and 100% at age 57+.
For 25 years of service or more, a rate of 100% is assumed.
Early Retirement Commencing with the earliest retirement age (45). Members are assumed to retire with immediate subsidized benefit at the rate of 7.5% per year.
Termination Rates See table below.
Disability Rates See table below.
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS -
POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT PLAN
LAST 10 FISCAL YEARS*
70
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CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS -
POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT PLAN
LAST 10 FISCAL YEARS*
Mortality Healthy Lives:
Female: PubS.H-2010 (Below Median) for Employees, set forward one year.
Male: PubS.H-2010 (Below Median) for Employees, set forward one year.
Disabled Lives:
80% PubG.H-2010 for Disabled Retirees / 20% PubS.H-2010 for Disabled Retirees
Other Information
Termination Rates Table
Service Rate Service Rate
0 - 2 20.0%20 0.070%
3 15.0%25 0.080%
4 10.0%30 0.090%
5 9.0%35 0.120%
6 8.0%40 0.150%
7 7.0%45 0.260%
8 6.0%50 0.500%
9 5.5%55 0.780%
10 5.0%60+1.05%
11 4.5%
12 4.0%
13+3.5%
Disability Rates Table
Termination and Disability Rates Table
71
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For the Year Ended September 30,2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Annual Money Weighted Rate of Return,
Net of Investment Expense -13.31%19.42%8.65%4.64%8.35%12.40%7.54%-1.99%9.70%12.28%
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS -
GENERAL EMPLOYEES' RETIREMENT PLAN
LAST 10 FISCAL YEARS
72
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For the Year Ended September 30,2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Annual Money Weighted Rate of Return,
Net of Investment Expense -13.30%19.40%8.12%3.94%8.12%12.45%6.60%-2.25%9.92%12.04%
CITY OF CRESTVIEW, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS -
POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT PLAN
LAST 10 FISCAL YEARS
73
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COMBINING FINANCIAL STATEMENTS
Page 86 of 138
CITY OF CRESTVIEW, FLORIDA
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
The special revenue funds are used to account for the proceeds of specific sources (other than special
assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure
for specified purposes.
Law Enforcement Trust Fund—To account for proceeds collected under the Florida Contraband Forfeiture
Act. The proceeds are to be used solely for law enforcement purposes, with emphasis given to crime
prevention, safe neighborhoods, and drug abuse prevention programs.
Community Redevelopment Agency—To account for the operation of the agency overseeing the
redevelopment of the designated redevelopment areas. The agency is funded by property taxes collected
in the Agency’s designated area.
Community Development Block Grant (CDBG) Fund—To account for grant revenues and expenses
related to the federal grant program which provides funding for housing, community and economic
development activities, and assistance for low and moderate income persons.
Building and Permitting Fund—To account for revenues derived from building permits and inspection
fees that are legally restricted for enforcing the Florida Building Code.
DEBT SERVICE FUND
The Debt Service Fund is used to accumulate monies for payment of the Public Improvement Refunding
Bonds, Series 2015, with remaining principal and interest due annually on March 1 until maturity in
September 2041.
PERMANENT FUND
Permanent funds are used to report resources that are legally restricted to the extent that only earnings,
not principal, may be used for purposes that support the reporting government’s programs.
Library Fund—To account for a donation to the City to purchase library books. The interest is used to
purchase books for the City’s public library.
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Law Community
Enforcement Redevelopment Building and Debt Permanent
Trust Agency CDBG Permitting Service Fund Total
Assets
Cash and Cash
Equivalents 4,493$ 571,440$ 8,950$ 1,327,211$ 283,533$ 2,913$ 2,198,540$
Cash and Cash
Equivalents,
Restricted - - - - 71,815 - 71,815
Investments - - - - - 53,285 53,285
Prepaids - 237 - 2,061 - - 2,298
Due from Other
Governments - 250,000 51,771 - - - 301,771
Total Assets 4,493 821,677 60,721 1,329,272 355,348 56,198 2,627,709
Liabilities
Accounts Payable - 97,146 7,788 1,530 - - 106,464
Accrued Expenses - - - 1,255 - - 1,255
Interfund Payables - 250,000 51,771 - - - 301,771
Total Liabilities - 347,146 59,559 2,785 - - 409,490
Fund Balances
Non-Spendable - 237 - 2,061 - 53,285 55,583
Restricted - 474,294 - 1,324,426 71,815 - 1,870,535
Assigned 4,493 - 1,162 - 283,533 2,913 292,101
Total Fund Balances 4,493 474,531 1,162 1,326,487 355,348 56,198 2,218,219
Total Liabilities
and Fund Balances 4,493$ 821,677$ 60,721$ 1,329,272$ 355,348$ 56,198$ 2,627,709$
CITY OF CRESTVIEW, FLORIDA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
Special Revenue Funds
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Law Community
Enforcement Redevelopment Building and Debt Permanent
Trust Agency CDBG Permitting Service Fund Total
Revenues
Taxes -$ 85,186$ -$ -$ -$ -$ 85,186$
Licenses and Permits - - - 854,878 - - 854,878
Intergovernmental - 250,000 184,904 - - - 434,904
Miscellaneous - 1,779 - 1,293 - 160 3,232
Total Revenues - 336,965 184,904 856,171 - 160 1,378,200
Expenditures
Current:
General Government - 933,679 - - - - 933,679
Public Safety - - - 395,337 - - 395,337
Economic Environment - - 139,742 - - - 139,742
Debt Service:
Principal - - - 12,997 205,000 - 217,997
Interest - - - 1,320 79,491 - 80,811
Total Expenditures - 933,679 139,742 409,654 284,491 - 1,767,566
Excess (Deficiency) Revenues
Over (Under) Expenditures - (596,714) 45,162 446,517 (284,491) 160 (389,366)
Other Financing Sources (Uses)
Transfers in - 162,395 - - 283,741 - 446,136
Transfers out - - (44,000) (85,000) - - (129,000)
Total Other Financing
Sources (Uses)- 162,395 (44,000) (85,000) 283,741 - 317,136
Net Change in Fund Balances - (434,319) 1,162 361,517 (750) 160 (72,230)
Fund Balances,
Beginning of Year 4,493 908,850 - 964,970 356,098 56,038 2,290,449
Fund Balances,
End of Year 4,493$ 474,531$ 1,162$ 1,326,487$ 355,348$ 56,198$ 2,218,219$
Special Revenue Funds
CITY OF CRESTVIEW, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2022
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Stormwater Crestview
Fund Unlimited Total
Assets
Current Assets:
Cash and Cash Equivalents 215,999$ 86,736$ 302,735$
Accounts Receivable, Net 21,383 8,362 29,745
Prepaid Expenses 2,943 - 2,943
Inventories - 70,895 70,895
Total Current Assets 240,325 165,993 406,318
Non-Current Assets:
Capital Assets:
Assets Being Depreciated, Net 195,813 195,813
Total Non-Current Assets 195,813 - 195,813
Total Assets 436,138 165,993 602,131
Deferred Outflows of Resources
Other Postemployment Benefits 5,380 - 5,380
Pensions 89,678 - 89,678
Total Deferred Outflows of Resources 95,058 - 95,058
Liabilities
Current Liabilities:
Accounts Payable 7,390 35,740 43,130
Accrued Expenses 1,616 44,737 46,353
Due to Other Funds - 72,326 72,326
Unearned Revenue - 1,773 1,773
Current Portion of Long-Term Debt:
Compensated Absences 1,773 - 1,773
Revenue Bonds, Notes, and Capital Leases Payable 7,147 - 7,147
Total Current Liabilities 17,926 154,576 172,502
Non-Current Liabilities:
Revenue Bonds, Notes, and Leases Payable 18,311 - 18,311
Other Postemployment Benefits Obligation 23,776 - 23,776
Compensated Absences 5,320 4,166 9,486
Net Pension Liability 121,736 - 121,736
Total Non-Current Liabilities 169,143 4,166 173,309
Total Liabilities 187,069 158,742 345,811
Deferred Inflows of Resources
Other Postemployment Benefits 930 - 930
Pensions 2,958 - 2,958
Total Deferred Inflows of Resources 3,888 - 3,888
Net Position
Net Investment in Capital Assets 170,355 - 170,355
Unrestricted 169,884 7,251 177,135
Total Net Position 340,239$ 7,251$ 347,490$
CITY OF CRESTVIEW, FLORIDA
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2022
76
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Stormwater Crestview
Fund Unlimited Total
Operating Revenue
Charges for Service 399,198$ 491,527$ 890,725$
Other - 550 550
Total Operating Revenue 399,198 492,077 891,275
Operating Expenses
Personnel Expenses 234,817 455,167 689,984
Purchased Services - 33,987 33,987
Repairs and Maintenance 35,398 62,760 98,158
Depreciation and Amortization 4,667 - 4,667
Materials and Supplies 55,003 300,461 355,464
Other Expenses 14,468 123,487 137,955
Total Operating Expenses 344,353 975,862 1,320,215
Operating Income 54,845 (483,785) (428,940)
Non-Operating Revenues and Expenses
Interest Expense (551) (8,964) (9,515)
Transfers
Transfers in 238,162 - 238,162
Transfers (out)(513) - (513)
Total Transfers 237,649 - 237,649
Change in Net Position 291,943 (492,749) (200,806)
Net Position, Beginning of Year 48,296 500,000 548,296
Net Position, End of Year 340,239$ 7,251$ 347,490$
CITY OF CRESTVIEW, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
YEAR ENDED SEPTEMBER 30, 2022
77
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Stormwater Crestview
Fund Unlimited Total
Cash Flows from Operating Activities
Cash Received from Customers 401,634$ 485,488$ 887,122$
Cash Paid to Suppliers for Goods and Services (103,434) (511,113) (614,547)
Cash Paid to Employees for Services (224,562) (451,001) (675,563)
Net Cash Provided by Operating Activities 73,638 (476,626) (402,988)
Cash Flows from Non-Capital Financing Activities
Due to/from Other Funds - 72,326 72,326
Transfers to Other Funds (513) - (513)
Transfers from Other Funds 238,162 - 238,162
Net Cash Flows from Non-Capital Financing Activities 237,649 72,326 309,975
Cash Flows from Capital and Related
Financing Activities
Acquisition and Construction of
Capital Assets (172,989) - (172,989)
Interest Paid (551) (8,964) (9,515)
Principal Payment of Bonds, Notes
and Capital Leases (2,033) - (2,033)
Net Cash Used in Capital and Related
Financing Activities (175,573) (8,964) (184,537)
Net Change in Cash and Cash Equivalents 135,714 (413,264) (277,550)
Cash and Cash Equivalents, Beginning of Year 80,285 500,000 580,285
Cash and Cash Equivalents, End of Year 215,999$ 86,736$ 302,735$
Reconciliation of Operating Income to Net Cash
Operating Income 54,845$ (483,785)$ (428,940)$
Operating Activities:
Depreciation and Amortization Expense 4,667 - 4,667
Changes in Operating Assets and Liabilities:
Accounts Receivable 2,436 (8,362) (5,926)
Prepaid Expenses (2,943) - (2,943)
Inventories - (70,895) (70,895)
Accounts Payable and Accrued Expenses 4,378 80,477 84,855
Unearned Revenue - 1,773 1,773
Compensated Absences (127) - (127)
Other Postemployment Benefits and
Related Deferred Inflows and Outflows (629) 4,166 3,537
Net Pension Liability and Related
Deferred Inflows and Outflows 11,011 - 11,011
Total Adjustments 18,793 7,159 25,952
Net Cash Provided by Operating Activities 73,638$ (476,626)$ (402,988)$
CITY OF CRESTVIEW, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
YEAR ENDED SEPTEMBER 30, 2022
78
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COMPLIANCE SECTION
Page 93 of 138
Assistance Pass Through
Listing Entity Pass Through Grant
Grantor/Pass-Through Agency Number Identifying Number to Subrecipients Expenditures
Federal Awards
CDBG Entitlement Grants Cluster
U.S. Department of Housing and Urban Development
Community Development Block Grant Program 14.218 2021-2022 -$ 184,904$
Total CDBG Entitlement Grants Cluster - 184,904
U.S. Department of Treasury
Direct Program
COVID-19: Coronavirus State and Local Fiscal Recovery Funds*21.027 SLT-8655 - 2,044,666
Total U.S. Department of Treasury - 2,044,666
Total Expenditures of Federal Awards -$ 2,229,570$
* Denotes major federal awards program.
CITY OF CRESTVIEW, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND
STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2022
79
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CSFA Identifying Pass Through
Grantor Agency Number Number to Subrecipients Expenditures
State Financial Assistance
State of Florida, Department of Financial Services
Direct Program:
Local Government Fire Service Gants 43.009 FM682 -$ 480,553$
Total State of Florida, Department of Financial Services - 480,553
State of Florida, Department of State
Direct Program:
Emergency Management Preparedness and
Assistance Base Grant 45.032 22.h.sc.900.008 - 250,000
Total State of Florida, Department of State - 250,000
Total Expenditures of State Financial Assistance -$ 730,553$
STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(Concluded)
CITY OF CRESTVIEW, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND
80
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81
CITY OF CRESTVIEW, FLORIDA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Note 1 - General
The accounting policies and presentation of the accompanying schedule of expenditures of federal awards
and state financial assistance of the City of Crestview, Florida (the City) have been designed to conform
with generally accepted accounting principles applicable to governmental units, including the reporting
and compliance requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance) (federal awards); and Chapter 10.550, Rules of the Auditor General of the State of Florida.
The City reporting entity is defined in Note 1 to the City’s basic financial statements for the year ended
September 30, 2022. All federal awards and state financial assistance received directly from federal or
state agencies, as well as federal awards and state financial assistance passed through other governmental
agencies, are included in the schedule.
Note 2 - Basis of Accounting
The accompanying schedule of expenditures of federal awards and state financial assistance is presented
using the same basis of accounting as the fund in which the grant is recorded, generally the accrual or
modified accrual basis, as described in Note 1 D to the City’s financial statements.
Note 3 - Indirect Costs
The City did not elect to use the 10% de minimis cost rate in 2022 as covered in 2 CFR 200.414.
Page 96 of 138
82
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
City of Crestview, Florida (the City), as of and for the year ended September 30, 2022, and the related
notes to the financial statements, which collectively comprise the City’s basic financial statements and
have issued our report thereon dated June 22, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may
exist that were not identified. We identified certain deficiencies in internal control, described below that
we consider to be a material weakness.
Page 97 of 138
83
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
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
2022-01 – Financial Reporting
Criteria: To maintain a well-functioning and accurate internal and external financial reporting framework,
financial information must be recorded, reconciled, and prepared in accordance with generally accepted
accounting principles in the United States of America (GAAP).
Condition: While the City made significant improvements in the financial reporting system since the prior
fiscal year, a number of audit adjustments were needed to properly record transactions in accordance
with GAAP in the following areas:
■ Reporting of fixed asset balances and depreciation expense. The City uses excel spreadsheets for
tracking and maintaining fixed asset depreciation schedules. Errors were identified in the
depreciation schedule related to depreciation expense and accumulated depreciation. The use of this
technology lends itself to manual errors. In addition, we identified certain construction projects
dating back many years that were not properly closed into the capital asset accounts and, therefore,
were not being depreciated.
■ Over and under statements of accounts payable at year-end. The cutoff of accounts payable related
to ongoing construction projects that crossed fiscal years required material adjustments.
Effect: By not maintaining an adequate framework for complete and accurate financial reporting, the
City’s financial records required material audit adjustments in order to prepare accurate financial
statements in accordance with GAAP.
Recommendation: We recommend the City implement processes, procedures, and, where necessary,
technology appropriate for the level of transactional activity occurring within the City’s financial reporting
system in order to ensure the financial statements are prepared in accordance with GAAP.
Management’s Response: The Finance department has taken the audit team’s recommendation to
automate and computerize the acquisition and depreciation of assets by utilizing software designed for
the purpose. The City of Crestview is currently procuring this type of software. Additionally, the Finance
Department has already begun the process of taking inventory and identifying capital projects that need
to be placed in service or assets that have been taken out of service and/or fully depreciated with the
intent to implement the software with a clean depreciation schedule free of retired or outdated assets.
The City has numerous major projects that are often on-going at fiscal year-end. Certain projects with
expenditures in the current fiscal year (2022/2023) were inadvertently accrued at fiscal year-end. The
City is developing methods and processes to verify transactions are recorded in the correct period.
Page 98 of 138
84
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
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
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, non-compliance with which could have a direct and material effect on
the financial statements. 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 non-compliance or other matters that are required to be reported under
Government Auditing Standards.
Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response
to the findings identified in our audit and described above. The City’s response was not subjected to the
other auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on the response.
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 City’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 City’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
June 22, 2023
Tallahassee, Florida
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85
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Crestview, Florida’s (the City) compliance with the types of compliance
requirements identified as subject to audit in the 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, 2022.
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.
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, 2022.
Basis for Opinion on Each Major Federal Program
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; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of the City’s compliance with
the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s
federal programs.
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86
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material non-compliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect
material non-compliance when it exists. The risk of not detecting material non-compliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Non-compliance with the compliance
requirements referred to above is considered material if there is a substantial likelihood that, individually or
in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance
about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
■ Exercise professional judgment and maintain professional skepticism throughout the audit.
■ Identify and assess the risks of material non-compliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the City’s compliance with the compliance requirements referred to
above and performing such other procedures as we considered necessary in the circumstances.
■ Obtain an understanding of the City’s internal control over compliance relevant to the audit in order
to design audit procedures that are appropriate in the circumstances 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 the City’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on 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, non-compliance 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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material non-compliance 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 internal control
Page 101 of 138
87
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
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
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
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.
June 22, 2023
Tallahassee, Florida
Page 102 of 138
88
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
CITY OF CRESTVIEW, FLORIDA
SECTION I - SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of Auditor’s Report Issued on Whether the Financial
Statements Audited Were Prepared in Accordance with GAAP: Unmodified
Internal Control Over Financial Reporting:
Material weakness(es) identified? Yes
Significant deficiency(ies) identified? None Reported
Non-compliance material to financial statements noted? No
Federal Awards
Internal Control Over Major Federal Programs:
Material weakness(es) identified? No
Significant deficiencies identified? None Reported
Type of Auditor’s Report Issued on Compliance for Major
Federal Programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)? No
Identification of Major Federal Programs:
Assistance Listing Number
Coronavirus State and Local Fiscal Recovery Funds 21.027
Dollar threshold used to distinguish between
type A and type B programs: $750,000
Auditee qualified as low risk auditee? No
SECTION II - FINANCIAL STATEMENT FINDINGS
No matters are reported.
SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
No matters are reported.
Page 103 of 138
89
MANAGEMENT LETTER
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Crestview, Florida (the City) as of and for the fiscal
year ended September 30, 2022, and have issued our report thereon dated June 22, 2023.
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, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Florida Auditor General.
Other Reporting Requirements
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 the Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and
Independent Accountant’s Report on an examination conducted in accordance with American Institute of
Certified Public Accountants Professional Standards, AT-C Section 315, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports, which are dated June 22, 2023, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding financial audit
report. Certain items with the prior year finding 2021-01 were considered to have been resolved in the
current year. The remaining uncorrected items from the prior year finding 2021-01 are included in finding
2022-01 on page 83.
Official Title and Legal Authority
Sections 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. The official title and
legal authority for the City and the component unit of the City has been disclosed in Note 1 to the financial
statements.
Page 104 of 138
90
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
MANAGEMENT LETTER
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether or not the City has met one
or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify 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 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures for the City. 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.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations
to improve financial management. In connection with our audit, we did not have any such
recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate non-compliance 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 warrants the attention of
those charged with governance. In connection with our audit, we did not note any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, federal and other granting agencies, and applicable management, and is not intended to be, and
should not be, used by anyone other than these specified parties.
June 22, 2023
Tallahassee, Florida
Page 105 of 138
91
INDEPENDENT ACCOUNTANT’S REPORT ON
COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES
Honorable Mayor and City Council
City of Crestview
Crestview, Florida
We have examined the City of Crestview, Florida’s (the City) compliance with Section 218.415, Florida
Statutes, regarding the investment of public funds during the year ended September 30, 2022.
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. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the City complied with Section 218.415,
Florida Statutes, in accordance with the criteria, in all material respects. An examination involves
performing procedures to obtain evidence about the City’s compliance with those requirements. The
nature, timing, and extent of the procedures selected depend on our judgment, including as assessment
of risks of material misstatement, whether due to fraud or error. We believe that the evidence we
obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for the
year ended September 30, 2022.
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.
June 22, 2023
Tallahassee, Florida
Page 106 of 138
Page 107 of 138
Page 108 of 138
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITOR’S REPORT
CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
CRESTVIEW, FLORIDA
SEPTEMBER 30, 2022
TABLE OF CONTENTS
Independent Auditor’s Report .................................................................................................................. 1-3
Management’s Discussion and Analysis ................................................................................................... 4-7
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ...................................................................................................................... 8
Statement of Activities ........................................................................................................................... 9
Fund Financial Statements:
Balance Sheet – Governmental Fund ................................................................................................... 10
Statement of Revenues, Expenditures, and
Changes in Fund Balance – Governmental Fund .............................................................................. 11
Statement of Revenues, Expenditures, and
Changes in Fund Balance – Budget and Actual – General Fund ....................................................... 12
Notes to Financial Statements ............................................................................................................ 13-17
Other Reports
Independent Auditor’s Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards ........................................................................... 18-19
Management Letter ............................................................................................................................ 20-22
Independent Accountant’s Report on Compliance with
Section 218.415, Florida Statutes ......................................................................................................... 23
Independent Accountant’s Report on Compliance with
Section 163.387(6) and (7), Florida Statutes ........................................................................................ 24
Page 109 of 138
1
INDEPENDENT AUDITOR’S REPORT
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the major fund,
and the budgetary comparison for the General Fund of the Community Redevelopment Agency (the
Agency), a component unit of the City of Crestview, Florida (the City), as of and for the year ended
September 30, 2022, and the related notes to the financial statements, which collectively comprise the
Agency’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and the major fund of the Agency as of
September 30, 2022, and the respective changes in financial position and the budgetary comparison for
the year then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the Agency and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Page 110 of 138
2
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
INDEPENDENT AUDITOR’S REPORT
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
■ Exercise professional judgment and maintain professional skepticism throughout the audit.
■ Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
■ Obtain an understanding of internal control relevant to the audit 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 Agency’s internal control. Accordingly, no such opinion is expressed.
■ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
■ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the Agency’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis be presented to supplement the basic financial statements. Such information is
the responsibility of management and, 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
Page 111 of 138
3
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
INDEPENDENT AUDITOR’S REPORT
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 Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2023,
on our consideration of the Agency’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements, and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Agency’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
Agency’s internal control over financial reporting and compliance.
June 22, 2023
Tallahassee, Florida
Page 112 of 138
4
CITY OF CRESTVIEW, FLORIDA
COMMUNITY REDEVELOPMENT AGENCY
A COMPONENT UNIT OF THE CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
The City of Crestview Community Redevelopment Agency’s (the Agency) Management’s Discussion and
Analysis (MD&A) is intended to provide the readers of the Agency’s financial statements with a general
overview of the financial activities during fiscal year 2022.
HIGHLIGHTS
Financial Highlights
■ The assets of the Agency exceeded its liabilities at the close of the most recent fiscal year by $474,531
(net position).
■ The Agency’s total net position decreased by $434,319 or 48%.
■ At the close of fiscal year 2022, the Agency’s General Fund reported an ending fund balance of
$474,531, a decrease of $434,319. Revenues increased by $252,525, or 299%. This was primarily due
to grant revenues for Bush House renovations. Total expenditures increased by $649,748 or 229%.
The expenditures include efforts to improve Main Street's aesthetics through the Agency's Awning
Improvement Grants program and renovations for the Bush House.
OVERVIEW OF FINANCIAL STATEMENTS
The Agency’s basic financial statements provide information on both the Agency as a whole (government-
wide) and the major individual funds.
Government-Wide Financial Statements
The government-wide financial statements provide readers with a broad overview of the Agency’s
finances, in a similar manner to a private-sector business. The government-wide financial statements are
prepared using the accrual basis of accounting.
The government-wide financial statements include:
Statement of Net Position – This statement presents information on the Agency’s assets and liabilities.
This statement format combines and consolidates the governmental funds’ current financial resources
with capital assets and long-term obligations.
Statement of Activities – This statement presents information showing how the Agency’s net position
changed during the fiscal year. All changes in revenues are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Revenues and expenses are
reported in this statement for some items that will result in cash flows in future fiscal periods.
Page 113 of 138
5
CITY OF CRESTVIEW, FLORIDA
COMMUNITY REDEVELOPMENT AGENCY
A COMPONENT UNIT OF THE CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
The government-wide financial statements present functions of the Agency that are principally supported
by tax increment financing (governmental activities). The governmental activities of the Agency include
general government activities and redevelopment projects.
Fund Financial Statements
Fund financial statements provide readers with an overview of each fund and its related function in a
traditional format. A fund is a grouping of related accounts that maintain control over resources that are
segregated for specific activities or objectives. The Agency uses fund accounting to ensure and
demonstrate legal compliance with financial-related legal requirements. The General Fund is the only
governmental fund that is used to account for the operating activities of the Agency. The General Fund
also includes the activities of the redevelopment programs which are funded by restricted debt proceeds.
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, the governmental fund financial statements focus on near-term inflows and outflows of
spendable resources and balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government’s near-term financing requirements.
The focus of governmental funds is narrower than government-wide financial statements and, therefore,
useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government-wide financial statements. The ‘Balance Sheet –
Governmental Fund’ and ‘Statement of Revenues, Expenditures, and Changes in Fund Balance –
Governmental Fund’ are reconciled as shown on the page following the respective statements to facilitate
the comparison between the two presentations.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to the full
understanding of the information presented in the government-wide and the fund financial statements
and is required by generally accepted accounting principles.
Page 114 of 138
6
CITY OF CRESTVIEW, FLORIDA
COMMUNITY REDEVELOPMENT AGENCY
A COMPONENT UNIT OF THE CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position. In the case of
the Agency, assets exceed liabilities by $474,531 (net position) at the close of the most recent fiscal year.
One hundred percent of the Agency’s net position is restricted for community redevelopment.
The following schedule shows a comparison of the fiscal year 2022 and 2021 Statements of Net Position.
The following schedule shows a comparison of the fiscal year 2022 and 2021 Statements of Activities.
Cash and Cash Equivalents $571,440 $909,188
Due from Other Governments 250,000 -
Prepaid Items 237 -
Total assets 821,677 909,188
Accounts Payable 97,146 338
Due to City of Crestview 250,000 -
Total liabilities 347,146 338
Net position:
Restricted 474,531 908,850
Total net position $474,531 $908,850
2022 2021
Governmental Activities
General revenues:
Capital Grants and Contributions $250,000 $-
Property taxes 85,186 82,570
Miscellaneous 1,779 1,870
Total revenues 336,965 84,440
Expenses:
General government 475,749 203,399
Community Redevelopment 457,930 80,482
Total expenses 933,679 283,881
Increase (decrease) in net position
before transfers (596,714) (199,441)
Net Transfers 162,395 155,000
Increase (decrease) in net position $(434,319) $(44,441)
Governmental Activities
2022 2021
Page 115 of 138
7
CITY OF CRESTVIEW, FLORIDA
COMMUNITY REDEVELOPMENT AGENCY
A COMPONENT UNIT OF THE CITY OF CRESTVIEW, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
(UNAUDITED)
Financial Analysis of the Agency’s Fund
The Agency uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
The Agency has only one governmental fund, the General Fund. The focus of the Agency’s general fund is
to provide information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the Agency’s financing requirements.
At the end of the fiscal year, the Agency’s governmental fund reported an ending fund balance of
$474,531, a decrease of $434,319 for the year. The Agency’s fund balance is restricted for future
community redevelopment purposes. The decrease in fund balance was primarily related to additional
expenses pertaining to the renovations of the Bush House.
General Fund Budgetary Highlights
During the fiscal year 2022, actual revenues and transfers exceeded the final budget by $17,579. Total
expenditures were $457,290 less than the final budgeted appropriations for the year ended
September 30, 2022. This was largely due to undistributed grant funding due to lack of applications and
slower than expected movement on anticipated improvement projects.
Economic Factors and Next Year’s Budget
The following economic factors were considered in establishing the Agency’s 2023 budget:
■ The property valuations in the Agency district increased approximately 22% from the previous year.
■ In fiscal year 2023, the Agency budgeted to implement many of the downtown improvements and
upgrades identified in the recently completed mobility study.
Request for Information
This financial report is designed to provide a general overview of the Agency’s finances. Questions
concerning any of the information provided in this report or requests for additional information should
be addressed to the City of Crestview Community Redevelopment Agency at Crestview City Hall, 198 N .
Wilson Street, Crestview, Florida 32536, phone (850) 682-1560.
Page 116 of 138
BASIC FINANCIAL STATEMENTS
Page 117 of 138
Governmental
Activities
Assets
Current Assets:
Cash and Cash Equivalents 571,440$
Due from Other Governments 250,000
Prepaid Items 237
Total Current Assets 821,677
Total Assets 821,677
Liabilities
Accounts Payable 97,146
Due to City of Crestview 250,000
Total Liabilities 347,146
Net Position
Restricted for:
Community Redevelopment 474,531
Total Net Position 474,531
Total Liabilities and Net Position 821,677$
CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
SEPTEMBER 30, 2022
STATEMENT OF NET POSITION
See accompanying notes.
8
Page 118 of 138
Net (Expense)
Program Revenues Revenue and Changes
Capital in Net Position
Grants and Governmental
Expenses Contributions Activities
Functions
Governmental:
General Government 475,749$ -$ (475,749)$
Community Redevelopment 457,930 250,000 (207,930)
Total Functions 933,679$ 250,000$ (683,679)$
General Revenues
Taxes 85,186
Miscellaneous 1,779
Total General Revenues 86,965
Transfers from City of Crestview 162,395
Change in Net Position (434,319)
Net Position - Beginning of Year 908,850
Net Position - End of Year 474,531$
CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
FOR THE YEAR ENDED SEPTEMBER 30, 2022
STATEMENT OF ACTIVITIES
See accompanying notes.
9
Page 119 of 138
Assets
Cash and Cash Equivalents 571,440$
Due from Other Governments 250,000
Prepaid Items 237
Total Assets 821,677
Liabilities
Accounts Payable 97,146
Due to City of Crestview 250,000
Total Liabilities 347,146
Fund Balance
Non-Spendable 237
Restricted for:
Community Redevelopment 474,294
Total Fund Balance 474,531
Total Liabilities and Fund Balance 821,677$
CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
BALANCE SHEET - GOVERNMENTAL FUND
SEPTEMBER 30, 2022
See accompanying notes.
10
Page 120 of 138
Revenues
Taxes 85,186$
Intergovernmental 250,000
Miscellaneous 1,779
Total Revenues 336,965
Expenditures
Current:
General Government 475,749
Community Redevelopment 457,930
Total Expenditures 933,679
(Deficiency) of Revenues (Under) Expenditures (596,714)
Other Financing Sources
Transfers from City of Crestview 162,395
Total Other Financing Sources 162,395
Net Change in Fund Balance (434,319)
Fund Balance - Beginning of Year 908,850
Fund Balance - End of Year 474,531$
CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
STATEMENT OR REVENUES, EXPENDITURES, AND CHANGES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
IN FUND BALANCE - GOVERNMENTAL FUND
See accompanying notes.
11
Page 121 of 138
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Taxes 89,555$ 85,386$ 85,186$ (200)$
Intergovernmental 250,000 250,000 250,000 -
Miscellaneous Income 3,000 3,000 1,779 (1,221)
Total Revenues 342,555 338,386 336,965 (1,421)
Expenditures
Current:
General Government 509,650 509,650 475,749 33,901
Community Redevelopment 807,977 881,319 457,930 423,389
Total Expenditures 1,317,627 1,390,969 933,679 457,290
Excess (Deficiency) of Revenues
Over (Under) Expenditures (975,072) (1,052,583) (596,714) 455,869
Other Financing Sources
Transfers in from City of Crestview 162,395 162,395 162,395 -
Transfers (out) to City of Crestview (19,000) (19,000) - 19,000
Total Other Financing Sources (Uses)143,395 143,395 162,395 19,000
Appropriation of Fund Balance 831,677 909,188 - (909,188)
Net Change in Fund Balance -$ -$ (434,319)$ (434,319)$
FOR THE YEAR ENDED SEPTEMBER 30, 2022
CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
Budgeted Amounts
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - GENERAL FUND
12
Page 122 of 138
NOTES TO FINANCIAL STATEMENTS
THE CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
CRESTVIEW, FLORIDA
13
Note 1 - Summary of Significant Accounting Policies
A. Reporting Entity
The City of Crestview (the City) Community Redevelopment Agency (the Agency) was established by the
City as a separate legal entity in accordance with Florida Statute 166.021, Chapter 163, Part III. The Agency
oversees the redevelopment of the downtown area. The Community Redevelopment Board of
Commissioners consists of the City Council, who approve and have operational responsibility for the
component unit. The President and Vice President of the City Council function as the Chairman and Vice
Chairman of the Agency. In addition, City employees manage the Agency’s assets. The Agency is reported
in the financial statements of the primary government as a non-major governmental fund.
B. Government-Wide and Fund Financial Statements
The basic financial statements include both government-wide and fund financial statements. The
government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)
report information on all the non-fiduciary activities of the primary government. For the most part, the
effect of interfund activity has been removed from these statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services or privileges provided by a given function or
segment, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
C. Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recorded as revenue in the year for which they are levied. Grants and similar items are recognized as
revenue soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collected within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Agency considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
The Agency’s primary source of revenue is property taxes. The City’s ad valorem taxes are assessed by
the Okaloosa County Property Appraiser and collected by the Okaloosa County Tax Collector in accordance
with Florida Statutes. The City retains the right and duty to set millage rates. Property taxes are not
recorded as receivables at September 30th because, though legally assessed as of January 1st, they are
not due and payable until after the close of the fiscal year ended the following September 30th.
Page 123 of 138
NOTES TO FINANCIAL STATEMENTS
THE CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
CRESTVIEW, FLORIDA
14
The following is the current property tax calendar:
Assessment Date January 1, 2022
Levy Date November 1, 2022
Due Date March 31, 2023
Delinquency Date April 1, 2023
The City grants discounts of 1% for each month taxes are paid prior to March.
Revenue recognition criteria for property taxes under Governmental Accounting Standards Board (GASB)
require that only property taxes expected to be collected within 60 days of the current period be accrued.
Property taxes which are uncollected as of the end of the fiscal year are generally immaterial in amount
and highly susceptible to uncollectibility; therefore, they are not recorded as a receivable at the balance
sheet date.
D. Basis of Presentation
The financial transactions of the Agency are recorded in one fund. A fund is a separate accounting entity
with a self-balancing set of accounts recording cash and other financial resources, together with all related
liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of
carrying on specific activities or attaining certain objectives in accordance with special regulations,
restrictions, or limitations. As a general rule, the effect of interfund 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.
Internally dedicated resources are reported as general revenues rather than program revenues. Likewise,
general revenues include all taxes.
When both restricted and unrestricted resources are available for use, it is the Agency’s policy to use
restricted resources first, then unrestricted resources as they are needed. Governmental funds focus on
the determination of financial position and changes in financial position (sources, uses and balances of
financial resources) and not net income. The Agency only has one fund which is used to account for the
activities of the Agency.
E. Assets, Liabilities, and Net Position or Fund Balances
Cash and Cash Equivalents
The Agency has defined cash and cash equivalents to include cash on hand, demand deposits, certificates
of deposits, and short-term investments with original maturities of three months or less from the date of
acquisition.
Deposits and Investments
Section 218.415, Florida Statutes, requires the investment of surplus public funds and prescribes the
instruments for which those investments are authorized, specifically the State of Florida Local
Government Surplus Funds Trust Fund, direct obligations of the United States Government or other
Page 124 of 138
NOTES TO FINANCIAL STATEMENTS
THE CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
CRESTVIEW, FLORIDA
15
obligations unconditionally guaranteed by the United States Government, and other similarly permitted
investments. The City adheres strictly to the provisions of those cited Statutes, as well as with
Chapter 280, Florida Statutes, which requires the City to maintain deposits only with Qualified Public
Depositories (QDPs). The City maintains a cash pool available for use by all funds. Earnings from the pool
are allocated to the respective funds based on applicable cash participation by each fund.
Capital Assets
The Agency pays for certain infrastructure improvements (signs, roads, sidewalks, bridges, and other
utility infrastructure) within the designated redevelopment area; however, these improvements are
considered property of the City, and, therefore, are included as capital assets in the City’s government-
wide financial statements. The Agency does not currently have title to any capital assets.
Capital assets titled to the Agency, if any, are defined by the government as assets with an initial, individual
cost of more than $10,000 and an estimated useful life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets’ lives are not capitalized.
Compensation Costs
The Agency has no employees of its own. Instead, the Agency reimburses the City for the portion of
salaries and benefits attributable to Agency activities based on the estimated time spent on those
activities as projected during the annual budget process. Any long-term payroll and benefit liabilities such
as compensated absences, other postemployment benefits, or pension liabilities are reported on the
City’s financial statements.
Classification of Fund Balance
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes
fund balance classifications that comprise a hierarchy based primarily on the extent to which government
is bound to observe constraints imposed upon the use of the resources reported in governmental funds.
Fund balance classifications, under GASB 54, are composed of the following:
■ Restricted—includes amounts that can be spent only for the specific purposes stipulated by external
resource providers, constitutionally or through enabling legislation. Restrictions may effectively be
changed or lifted only with the consent of resource providers.
This classification reflects not only the nature of funds, but also provide clarity to the level of
restriction placed upon fund balance. Fund balance can have different levels of restraint, such as
external versus internal compliance requirements.
In circumstances when an expenditure is made for a purpose for which amounts are available in
multiple fund balance classifications, fund balance is generally depleted in the order of restricted,
committed, assigned, and unassigned.
Page 125 of 138
NOTES TO FINANCIAL STATEMENTS
THE CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
CRESTVIEW, FLORIDA
16
The government-wide fund financial statements utilize a net position presentation. Net position is
categorized as net investment in capital assets, restricted and unrestricted.
■ Net Investment in Capital Assets—is intended to reflect the portion of net position which are
associated with non-liquid, capital assets, net of related debt.
■ Restricted Net Position—are liquid assets, generated from revenues and net bond proceeds, which
are not accessible for general use because of third-party (statutory, bond covenant or grantor agency)
limitations.
■ Unrestricted Net Position—represents unrestricted liquid assets.
F. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the
reported amounts of revenue and expenditures during the reporting period. Actual results could differ
from those estimates.
G. Budgets
Budgets are adopted on a basis consistent with generally accepted accounting principles, except that
capital lease proceeds and related capital outlay are excluded from the budget. Annual appropriated
budgets are adopted by ordinance for all governmental funds. All appropriations lapse at fiscal year-end
except for appropriations related to multi-year capital projects.
Budgetary data reflected in the financial statements are established by the following procedures:
Prior to September 1 of each year, the Board prepares in detail and adopts a budget of anticipated
revenues and expenditures for all Agency purposes for the ensuing year.
Proposed budgets are advertised in a newspaper of general circulation in the City and detailed in the
minutes of the Council. Public hearings are conducted for the purposes of receiving taxpayer comments.
When the budget is adopted, it has the force and effect of appropriations for the various items and
purposes specified.
The limits shall not be exceeded by the Council nor any office or department during the year.
Amendments and transfers may be made to the budget by a two-thirds vote of the Council and the
consent of the Mayor. The level of budgetary control (that is the level at which expenditures cannot
legally exceed appropriations) has been established at the fund level.
A budget amendment shall be deemed to mean the act of increasing or decreasing the total budgeted
amount of a given fund as opposed to a transfer of a budgeted amount from one account to another
within the same fund. Budgeted amounts reflected in the financial statements are as originally adopted,
or as amended with the approval of the City Council.
Page 126 of 138
NOTES TO FINANCIAL STATEMENTS
THE CITY OF CRESTVIEW COMMUNITY REDEVELOPMENT AGENCY
CRESTVIEW, FLORIDA
17
Note 2 - Deposits
Deposits may be exposed to custodial credit risk, which is the risk that in the event of a bank failure, the
government’s deposits may not be returned. The Agency manages its custodial credit risk by maintaining
its deposits with QPDs, as defined in Chapter 280, Florida Statutes, which bear no custodial credit risk or
are in institutions which meet the exemption requirements of Chapter 280. The exemptions qualify under
the exemptions 280.03(e) or 280.03(f) as a deposit made in accordance with Chapter 17.57(g). The
provisions of Chapter 280 allow QDPs to participate in a multiple financial institution collateral pool to
ensure the security for public deposits.
All QDPs must place with the Treasurer of the State of Florida, securities which have a market value equal
to 50% of all public funds on deposit at the end of each month in excess of any applicable deposit
insurance. In the event of default by a qualified public institution, the State Treasurer will pay public
depositors all losses. Losses in excess of insurance and collateral will be paid through assessments
between all QDPs. Under this method, all deposits are fully insured or collateralized with securities held
by the State Treasurer in the Agency’s name.
Note 3 - Transfers
The Agency is a blended component unit of the City. For the year ended September 30, 2022, the Agency
received a transfer from the City in the amount of $162,395 for its portion of tax increment financing.
Page 127 of 138
OTHER REPORTS
Page 128 of 138
18
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
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities and the major fund of the City of Crestview Community Redevelopment Agency (the Agency), as
of and for the year ended September 30, 2022, and the related notes to the financial statements, which
collectively comprise the Agency’s financial statements and have issued our report thereon dated June 22,
2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency’s internal
control over financial reporting (internal control) as a basis for designing 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 Agency’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Agency’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Agency’s financial statements will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
Page 129 of 138
19
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
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
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, non-compliance with which could have a direct and material effect on
the financial statements. 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 non-compliance 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 Agency’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 Agency’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
June 22, 2023
Tallahassee, Florida
Page 130 of 138
20
MANAGEMENT LETTER
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Crestview Community Redevelopment Agency (the
Agency) as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated
June 22, 2023.
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; and Chapter 10.550, Rules of the Auditor General.
Other Reporting Requirements
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 the Financial Statements Performed in Accordance
with Government Auditing Standards and Independent Accountant’s Reports on an examination
conducted in accordance with American Institute of Certified Public Accountants Professional Standards,
AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the
Auditor General. Disclosures in those reports, which are dated June 22, 2023, should be considered in
conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding financial audit
report. Corrective actions have been taken to address the findings and recommendations in the preceding
financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. This is disclosed in
Note 1 of the financial statements.
Page 131 of 138
21
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
MANAGEMENT LETTER
Financial Condition and Management
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether or not the Agency has met
one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific
condition(s) met. In connection with our audit, we determined that the Agency did not meet any of the
conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures for the Agency. It is management’s responsibility to monitor the
Agency’s financial condition, and our financial condition assessment was based in part on representations
made by management and review of financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations
to improve financial management. In connection with our audit, we did not have any such
recommendations.
Special District Component Units
Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the
failure of a special district that is a component unit of a county, municipality, or special district, to provide
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)(b), Florida Statutes. In connection with our audit, we determined that the special
district component unit provided the necessary information for proper reporting in accordance with
Section 218.39(3)(b), Florida Statutes.
Specific Information
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor
General, the Agency reported:
a. The total number of district employees compensated in the last pay period of the district’s fiscal year
was 0. The Agency has no employees but receives administrative staffing and support from the City.
b. The total number of independent contractors to whom non-employee compensation was paid in the
last month of the district’s fiscal year was 1.
c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of
contingency was $0. As noted above, the Agency has no employees of its own.
d. All compensation earned by or awarded to non-employee independent contractors, whether paid or
accrued, regardless of contingency was $36,000.
e. Each construction project with a total cost of at least $65,000 approved by the district that is
scheduled to begin on or after October 1 of the fiscal year being reported, together with the total
expenditures for such project as $400,118. These expenditures pertain to renovations for the Bush
House.
Page 132 of 138
22
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
MANAGEMENT LETTER
f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before
the beginning of the fiscal year being reported if the district amends a final adopted budget under
Section 189.016(6), Florida Statutes, was $77,511. A budget versus actual variance is presented on
page 12.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we communicate non-compliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material, but which warrants the attention
of those charged with governance. In connection with our audit, we did not note any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, federal and other granting agencies, the Honorable Mayor, and City Council and management,
and is not intended to be, and should not be, used by anyone other than these specified parties.
June 22, 2023
Tallahassee, Florida
Page 133 of 138
23
INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
We have examined the City of Crestview Community Redevelopment Agency’s (the Agency) compliance
with Section 218.415, Florida Statutes, as of and for the year ended September 30, 2022, as required by
Section 10.556 (10)(a), Rules of the Auditor General. Management is responsible for the Agency’s
compliance with those requirements. Our responsibility is to express an opinion on the Agency’s
compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the Agency complied, in all material respects,
with the requirements referenced above. An examination involves performing procedures to obtain
evidence about whether the Agency complied with the specific requirements. The nature, timing, and
extent of procedures selected depend on our judgement, including an assessment of the risk of material
non-compliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient
and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
Our examination does not provide a legal determination of the Agency’s compliance with the specified
requirements.
In our opinion, the Agency complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2022.
This report 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, the Agency,
its management, and the Board of the City of Crestview, Florida, and is not intended to be, and should not
be, used by anyone other than these specified parties.
June 22, 2023
Tallahassee, Florida
Page 134 of 138
24
INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH
SECTION 163.387(6) AND (7), FLORIDA STATUTES
The Board of Commissioners
Community Redevelopment Agency
Crestview, Florida
We have examined the Crestview Community Redevelopment Agency’s (the Agency) compliance with
Section 163.387(6) and (7), Florida Statutes, as of and for the year ended September 30, 2022, as required
by Section 10.556 (10)(a), Rules of the Auditor General. Management is responsible for the Agency’s
compliance with those requirements. Our responsibility is to express an opinion on the Agency’s
compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the Agency complied, in all material respects,
with the requirements referenced above. An examination involves performing procedures to obtain
evidence about whether the Agency complied with the specified requirements. The nature, timing, and
extent of the procedures selected depend on our judgment, including an assessment of the risks of
material non-compliance, whether due to fraud or error. We believe that the evidence we obtained is
sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
Our examination does not provide a legal determination of the Agency’s compliance with the specified
requirements.
In our opinion, the Agency complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2022.
This report is intended solely for the information and use of the Agency 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.
June 22, 2023
Tallahassee, Florida
Page 135 of 138
Page 136 of 138
CITY OF CRESTVIEW Item # 4.2.
Staff Report
CITY COUNCIL MEETING DATE: August 28, 2023
TYPE OF AGENDA ITEM: Action Item
TO: Mayor and City Council
CC: City Manager, City Clerk, Staff and Attorney
FROM: Elizabeth Roy, CRA Director, Tim Bolduc, City Manager
DATE: 8/23/2023
SUBJECT: Discussion/approval of CRA Grant Policy Exception
BACKGROUND:
At the August 14th Council meeting, consensus was given to examine the possibility of a policy exception on
the CRA Grants for 3rd Planet Brewing to be located in Downtown Crestview.
DISCUSSION:
Normally, grants are once every 6 months for each property.
Due to the nature of the work needed, staff is requesting a one time policy exception.
• Code Compliance Grant for 3rd Planet not to exceed $50,000 Match
• Code Compliance Grant for Building owner not to exceed $25,000 Match
• Beautification Grant for 3rd Planet not to exceed $30,000 Match
Granting of these policy exceptions would require an agreement that the property would not be eligible to
reapply for additional grants at the end of the 6 month period that is a part of the normal grant process.
The granting of the policy exceptions would speed the process of development of a new business on Main
Street.
GOALS & OBJECTIVES
This item is consistent with the CRA Strategic Plan 2020 Gateway to Opportunities as follows:
To revitalize the district capitalizing on current resources and recognized opportunities
1. Establish a revitalization task force to address economic and physical Revitalization
2. Maintain and Strengthen the Façade Grant Program
3. Develop green space, open space parks, and public plaza programs and promote connectivity within the
community
To provide infrastructure for current and future needs
1. Develop and enforce building and site maintenance codes
2. Eliminate the informality in the enforcement of regulations
3. Develop a sidewalk restoration and maintenance program
Page 137 of 138
4. Review a realign downtown streets for efficiency/eliminate dangerous intersections
Market the District
1. Build and develop an active marketing and branding program
2. Promote CRA district on website and all social media platforms
3. Clearly identify “Historic Downtown Crestview” and direct visitors and locals to the district
4. Develop “Gateways to Crestview”
5. Develop a cohesive “family” of wayfinding signs to the district
Enhance Public and Private partnerships
1. Re-emphasize and incentivize the Crestview Main Street Program
2. Refocus the Historic Preservation Board
3. Enhance the SR 85 Bridge
Enhance the Aesthetics of the District
1. Develop design guidelines for Facades, signage, landscaping , access and parking
2. Develop area around new courthouse/add public amenities
3. Eliminate informality of enforcement of regulations
Expand Activity in the District
1. Promote Arts in the downtown and entire CRA district
Economic Development in the District
1. Amend Comprehensive plan to mixed use for downtown district
2. Develop a commercial incentive program to encourage new development, economic activities and job
creation
Connectivity
1. Develop an access road from Industrial Drive to Twin Hills Park
2. Develop a Bike path/pedestrian trail link to between downtown and Twin Hills Park
3. Connect Industrial Drive to Twin Hills park with new entrance
FINANCIAL IMPACT
There are sufficient funds in the current CRA budget for these grants.
RECOMMENDED ACTION
Staff respectfully requests that the members of the CRA Board approve the one time CRA Grant policy
exception as outlined above.
Attachments
None
Page 138 of 138