POLK CITY  City Commission Workshop (6 pm) City Commission Meeting (7 pm) Polk City Government Center 123 Broadway Blvd., SE  August 17, 2020  CALL TO ORDER - Mayor Joe LaCascia  INVOCATION - Pastor Walter Lawlor, New Life Community Church PLEDGE OF ALLEGIANCE - Mayor Joe LaCascia ROLL CALL - Assistant to the City Manager Sheandolen Dunn  ESTABLISHMENT OF A QUORUM APPROVE CONSENT AGENDA PRESENTATIONS AND RECOGNITIONS  PUBLIC COMMENT - ITEMS NOT ON AGENDA (limit comments to 3 minutes)  AGENDA  1. 2. 3. 4. 5.  Appointment to Planning Commission = Alternate Member Approval of Lease with Polk County for Fire Station  Resolution 2020-07- Al Resolution of City Commission of Polk City, Florida adopting the Mt. Olive Road Wastewater System Evaluation = Wood Environment and Infrastructure  2020 Polk County Mult-Jurisdictional Local Mitigation Strategy Update.  Solutions, Inc.  Audit Presentation- - FY2019  CITY MANAGER ITEMS CITY ATTORNEYI ITEMS COMMISSIONER ITEMS Vice Mayor Kimsey Commissioner Blethen Commissioner Carroll Commissioner Harper Mayor LaCascia ANNOUNCEMENTS ADJOURNMENT  Please note: Pursuant to Section 286. 0105, Florida Statutes, ifap person decides to appeal any decision made byt the City Commission with respect to any matter considered during this meeting, he or she will need to ensure that a verbatim record oft the proceedings is made, which recordi includes the testimony ande evidence upony which the appeali ist to be based. tna accordance withi the American with Disabilities Act, aj persony witho disabilities any special accommodations top participate in city meetings should contact the Office oft the City Clerk, Polk City Government Center, 123 needing Polk City, Florida: 33868 Telephone (863) 984-1375. The City of Polk City may take action on any matter duringt this meeting. including items Broadway, that are nots setf forth within this agenda. Minutes of the City Commission meetings may be obtained from the City Clerk's office." The minutes are recorded, are nott transcribed verbatim. Persons requiring a verbatim transcript may arrange with the City Clerk to dupliçate the recordings, or courtr reporter present att the meeting. The cost of duplication. and/or courtr reporter will be att thee expense oft the requesting party. arranget to a  have but    CONSENT AGENDA August 17, 2020  These action items are considered to be routine and will be enacted by one motion. There will be no separate discussion on these items. A Board Member may request  an item be moved to the Regular Agenda for discussion.  A. CITY CLERK  1. Accept minutes - July 20, 2020 - City Commission Meeting 2. Accept minutes - July 20,2020 - City Commission Workshop  B. REPORTS  1. Building Permits Report - July 2020 2. Code Enforcement Report - June 2020 3. Financial Report - June/July 2020 4. Library Report-. July 2020 5. Polk County Fire Rescue - N/A 6. Polk Sheriff's Report - July 2020 7. Public Works Report - June/July 2020 8. Utilities Report - July 2020  C. OTHER    City Commission Meeting August 17, 2020  CONSENT AGENDA ITEM:  Accept minutes for:  1. Accept minutes - July 20, 2020- - City Commission Workshop 2. Accept minutes - July20,2020-C City Commission Meeting  INFORMATION ONLY X ACTION REQUESTED  ISSUE: Minutes attached for review and approval  ATTACHMENTS:  1. Accept minutes - July 20, 2020 - City Commission Workshop 2. Accept minutes - July20, 2020-C City Commission Meeting  ANALYSIS: N/A  STAFF RECOMMENDATION: Approval of Minutes    CITY COMMISSION WORKSHOP MINUTES  July20, ,2020  Mayor Joe LaCascia called the meeting to order at 6:10 pm. ROLL CALL - City Manager Patricia Jackson  Present:  Mayor Joe LaCascia, Vice Mayor Don Kimsey, Commissioner Wayne Harper, Commissioner Micheal T. Blethen, Commissioner Randy Carroll, City Attorney Thomas Cloud, and City Manager Patricia Jackson  Agenda Review - City Commission Meeting - July 20, 2020  Mayor LaCascia stated the purpose of the Workshop is to discuss items being presented on the Regular Meeting Agenda and address any questions or concerns and ultimately be able to proceed in a more efficient manner at the Regular Meeting.  ORDER OF BUSINESS ORDINANCE 2020-06  AN ORDINANCE OF POLK CITY, FLORIDA, AMENDING THE POLK CITY CODE OF ORDINANCES (THE "CITY CODE"); AMENDING ARTICLE II, CHAPTER 34 IN THE CITY CODE TO MODIFY AND SUPPLEMENT THE CITY'S NOISE ORDINANCE; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE Major Ken Hall, Polk County Sheriff's Office (PCSO), District Commander for the West Division was present to discuss the Noise Ordinance concerns that have come about. Major Hall also mentioned Sheriff Judd will be in office for the next four years as he ran Vice Mayor Kimsey spoke words of encouragement to the PCSO members that were in Vice Mayor Kimsey addressed Section 34-36 (Page 4) of the Ordinance = asking if the Major Hall responded section D - Enforcement = explained this is a misdemeanor and the Deputy has discretion. City Ordinance Citation is a civil matter. The County  DATE. Second and Final Reading  unopposed. attendance.  PCSO has any issues following the Ordinance as it is written.  Ordinance does not have to give a warning.    Section 34-36 C- Major Hall recommended removing the 15 minutes timeframe in the  Ordinance as well. This timeframe is not in the County Ordinance. City Manager Jackson asked if we could just use the County Ordinance. Major Hall stated PCSO will enforce whatever Polk City desires. City Attorney stated adoption of the Polk County Ordinance will be fine. problem in the particular area and is available to speak, if necessary.  City Manager Jackson stated Deputy Poindexter has done her research on the noise Mayor LaCascia stated this appears to be an isolated incident and there is only one complaint that has come forth. Polk City cannot write a specific Ordinance for one Major Hall stated the signed affidavit is no longer done. There is a sworn witness statement which will keep the accused person out of court. The more witnesses you After lengthy conversation regarding Section 34-36 Enforcement recommendation of the Commission at the 7pm Regular Meeting will be to 1) change the word "Shall" to "May" throughout this Ordinance; 2) remove the  specific problem.  have to a crime, the easier it will be to prosecute.  the  fifteen (15) minute timeframe. ORDINANCE 2020-07  AN ORDINANCE OF POLK CITY, FLORIDA, RATIFYING ALL ORDINANCES ADOPTED FROM APRIL 3, 2020, UNTIL JUNE 4, 2020, INCLUDING ORDINANCE NUMBERS 2020-02, 2020-03, 2020-04, & 2020-05; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. Second and Final Reading Mayor LaCascia stated this Ordinance is a Public Hearing for the Regular Meeting.  No further discussion. RESOLUTION 2020-05 FOR. AN EFFECTIVE DATE.  A RESOLUTION OF POLK CITY, FLORIDA; AMENDING RULES AND POLICIES GOVERNING PUBLIC COMMENT; PROVIDING FOR SEVERABILITY; PROVIDING Mayor LaCascia stated this Resolution is simply clarifying that each person has three  (3) minutes to speak during a City Commission Meeting.  No further discussion.  2    Republic Services Franchise Agreement Contract Extension - 3% Automatic  Increase  City Manager Jackson and Mayor LaCascia discussed the current Solid Waste and Recycling Collection Franchise Agreement with Republic Services (RS) that is set to expire January 1, 2021. Republic Services was given notice within the 180 days required by contract advising the contract would expire January 1, 2021. In a letter dated June 24, 2020 (see attached), Republic Services has asked to extend the contract for one (1) additional term of three (3) years with an amendment to the contract to the annual rate adjustment section to an automatic fixed 3% increase on the anniversary of the contract and the proceeding years thereafter beginning on January 1, City Manager Jackson stated that when Polk City initially entered into the contract with Republic Services, it was stated that the cost of living would automatically roll over. However, the Commission later changed it to where Republic Services would have to This past year RS came to the City Commission about a 1.5% increase. The City Commission indicated that they would like to have an automatic rollover. Therefore, Staff is recommending extending the current Solid Waste and Recycling Collection Franchise Agreement with Republic Services for one additional term of three years with an automatic of 1.5% and in the second year, come back to the City Commission with documentation for any additional increase. If the additional increase  2021.  come forth requesting an increase with back up information.  isn not approved, it would revert back to the 1.5%.  No further discussion.  George Cotellis Financial Reporting Oficer/Comptroller Services Agreement City Manager Jackson discussed the Agreement will be for the year ending September 30, ,2020. Mr. Cotellis will assist the City staff in making the necessary adjustments to provide for year-end closing of the accounting records and preparation of the schedules required to properly prepare the financial statements and related footnotes as well as for supporting documentation for the annual financial statement audit; preparation of the basic financial statements, required supplementary information, other supplementary information and related footnotes. He will not provide any opinion or form of assurance on these financial statements. The financial statements will be used solely by the City's independent auditors. Mr. Cotellis will also provide additional accounting services as requested by management as the need arises. Please see the attached agreement for full explanation of services and cost; however, total estimated cost is $13,600. This is an update to Mr. Cotellis' contract. There has not been an increase.  No further discussion.  3    YANMAR VI017 Mini Excavator Purchase  On many occasions during water line breaks, sewer line breaks and Public Works Repairs, and maintenance activities, the city-owned Caterpillar 416D Backhoe Combination has proven to be too large to safely maneuver in residential areas.  Cost- - $24,903.00. This equipment is in the budget.  City Manager Jackson stated this item is in the budget to purchase rather than using the large backhoe. Prices for used ones are almost the price of a new one. Commissioner Blethen inquired about how many times a year is the bucket used? Lori Pearson, Utilities Supervisor responded at least two weeks or more per month. After lengthy discussion, the City Commission is in agreement for this purchase  of a new Yanmar Excavator in the amount of $24,903.00.  ADJOURNMENT - 7:04 pm  Patricia Jackson, City Manager  Joe LaCascia, Mayor  4    CITY COMMISSION MINUTES  July 20, 2020  Mayor Joe LaCascia called the meeting to order at 7:05 pm. Pastor Walter Lawlor, New Life Community Church gave the invocation.  ROLL CALL -City Manager Patricia Jackson  Present:  Mayor Joe LaCascia, Vice Mayor Don Kimsey, Commissioner Wayne Harper, Commissioner Micheal T. Blethen, Commissioner Randy Carroll, City Attorney Thomas Cloud, and City Manager Patricia Jackson  APPROVE CONSENT AGENDA  Motion by Vice Mayor Kimsey to approve the June 4, 2020 (Special City Commission Meeting) and June 15, 2020 (Regular Meeting) minutes; this motion was seconded by  Commissioner Harper. Unanimously approved by' Voice Vote.  PUBLIC COMMENT- None ORDER OF BUSINESS  PUBLIC HEARING - ORDINANCE 2020-06  AN ORDINANCE OF POLK CITY, FLORIDA, AMENDING THE POLK CITY CODE OF ORDINANCES (THE "CITY CODE"); AMENDING ARTICLE II, CHAPTER 34 IN THE CITY CODE TO MODIFY AND SUPPLEMENT THE CITY'S NOISE ORDINANCE; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE City Attorney Cloud read the Ordinance by title only. Mayor LaCascia opened the Public Hearing; no one spoke for or against this Ordinance. Mayor LaCascia closed the Public Motion by Vice Mayor Kimsey to approve Ordinance 2020-06 on Second and Final Commissioner Harper inquired about whether we can kill this Ordinance and adopt the City Attorney Cloud stated Polk City does in fact, have a Noise Ordinance in place that this Ordinance will amend, if approved. But, the City can decide to go with the County's  DATE. Second and Final Reading  Hearing.  Reading; this motion was seconded by Commissioner Harper. County's Ordinance. Can we vote to rescind this Ordinance?  Ordinance within the City limits.    Vice Mayor Kimsey asked what is the benefit to getting rid of Polk City's Ordinance and  going with Polk County's Ordinance?  City Attorney Cloud stated that there is no answer to this.  City Manager Jackson stated if the three changes discussed during the Workshop are The Code Enforcement Officer can ensure compliance; however, she only works three days a week during normal business hours. The Special Magistrate can be called in, but that does not mean the individual(s) will be fined per day. Code Enforcement only meets every two months. The Code Enforcement Officer will take this as a complaint. Mayor LaCascia asked Major Hall if Polk County has a specific Noise Ordinance. Major Hall responded yes, even with the suggested changes for the City's Ordinance, the County's Ordinance has more "teeth" and does not require a warning at all. However, the Commissioner Blethen stated the PCSO will still enforce the County's Ordinance while Motion by Vice Mayor Kimsey to amend the motion to reflect the three changes discussed during the 6pm Workshop (deleting "shall" and remove the 15-minute timeline sentence). This amended motion was seconded by Commissioner Harper.  made, we would be in compliance with Polk County's Ordinance.  warning does build a timeline. this is being sorted out.  Roll Call Vote:  Mayor LaCascia-aye, Vice-Mayor Kimsey-aye, Commissioner Blethen-aye, Commissioner Carroll-aye, Commissioner Harper -  aye  Motion carried unanimously.  PUBLIC HEARING - ORDINANCE 2020-07  AN ORDINANCE OF POLK CITY, FLORIDA, RATIFYING ALL ORDINANCES ADOPTED FROM APRIL 3, 2020, UNTIL JUNE 4, 2020, INCLUDING ORDINANCE NUMBERS 2020-02, 2020-03, 2020-04, &2 2020-05; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. Second and Final Reading City Attorney Cloud read the Ordinance by title only. Mayor LaCascia opened the Public Hearing; no one spoke for or against this Ordinance. Mayor LaCascia closed the Public Motion by Commissioner Harper to approve Ordinance 2020-07 on Second and Final  Hearing.  Reading; this motion was seconded by Commissioner Carroll.  2    Roll Call Vote:  Commissioner Lacascia-aye  Harper-aye,  Commissioner  Carroll-aye,  Commissioner Blethen-aye, Vice-Mayor Kimsey-aye, Mayor  Motion carried unanimously. RESOLUTION 2020-05 FOR AN EFFECTIVE DATE.  AF RESOLUTION OF POLK CITY, FLORIDA; AMENDING RULES AND POLICIES GOVERNING PUBLIC COMMENT; PROVIDING FOR SEVERABILITY; PROVIDING  Mayor LaCascia read the Resolution by title only.  This Resolution is simply changing the public speaking time from five minutes back to the Motion by Commissioner Harper to adopt Resolution 2020-05; this motion was  original three minutes.  seconded by Commissioner Carroll.  Roll Call Vote:  Commissioner Carroll-aye, Mayor LaCascia-aye, Vice Mayor Kimsey-aye, Commissioner Blethen-aye, Commissioner Harper-  aye  Motion carried unanimously.  Republic Services Franchise Agreement Contract Extension - 3% Automatic Mayor LaCascia discussed the current Solid Waste and Recycling Collection Franchise Agreement with Republic Services will expire January 1, 2021. Republic Services was given notice within the 180 days required by contract advising the contract would expire In a letter dated June 24, 2020 (see attached), Republic Services has asked to extend the contract for one (1) additional term of three (3) years with an amendment to the contract to the annual rate adjustment section to an automatic fixed 3% increase on the anniversary of the contract and the proceeding years thereafter beginning on January 1, Staff recommended extending the current Solid Waste and Recycling Collection Franchise Agreement with Republic Services for one additional term of three years with an automatic of 1.5% and in the second year, come back to the City Commission with documentation for any additional increase. If the additional increase is not approved, it  Increase  January 1, 2021.  2021.  would revert back to the 1.5%.  3    Motion by Vice Mayor Kimsey to approve the Republic Services Franchise Agreement Contract Extension - 1.5% automatic increase over the term of the contract; this motion Vice Mayor Kimsey asked if Republic Services has the option to accept or decline this City Attorney Cloud stated yes. If Republic Services declines the 1.5% increase, then Polk City can go out for bid for a new company fori its Solid Waste and Recycling Services.  was seconded by Commissioner Harper.  1.5% automatic increase.  Motion carried unanimously by Voice Vote.  George Cotellis Financial Reporting Oficer/Comptroller Services Agreement Mayor LaCascia discussed the Agreement will be for the year ending September 30, 2020. Mr. Cotellis will assist the City staffinr making the necessary adjustments to provide for year-end closing of the accounting records and preparation of the schedules required to properly prepare the financial statements and related footnotes as well as for supporting documentation for the annual financial statement audit; preparation of the basic financial statements, required supplementary information, other supplementary information and related footnotes. He will not provide any opinion or form of assurance on these financial statements. The financial statements will be used solely by the City's independent auditors. Mr. Cotellis will also provide additional accounting services as requested by management as the need arises. There has not been an increase; however Motion by Commissioner Harper to approve the Financial Reporting Oicer/Comptroller Services Agreement with George Cotellis, Jr; this motion was  the total estimated cost is $13,600.  seconded by Commissioner Blethen. Motion carried unanimously by Voice Vote. YANMAR VI017 Mini Excavator Purchase  City Manager Jackson and Mayor LaCascia discussed on many occasions during water line breaks, sewer line breaks and public works Repairs, and maintenance activities, the city-owned Caterpillar 416D Backhoe Combination has proven to be too large to safely maneuver in residential areas. Cost - $24,903.00. This equipment is in the budget. Motion by Commissioner Blethen to approve the purchase of a YANMAR VIO17 Mini Excavator using Florida Sheriff's Association Contract FSA18-VEH16.0) from Vermeer Southeast Sales & Service, Inc. in the amount of $24,903.00; this motion was seconded  by Commissioner Harper.  Motion carried unanimously by Voice Vote.  4    RESOLUTION 2020-06  A RESOLUTION OF THE CITY COMMISSION OF POLK CITY, FLORIDA (CITY); EXTENDING ITS DECLARED STATE OF EMERGENCY DUE TO THE NOVEL CORONAVIRUS DISEASE 2019 (COVID-19); PROVIDING AN EFFECTIVE DATE. City Attorney Cloud stated this Resolution is extending the already existing State of Motion by Commissioner Harper to approve Resolution 2020-06; this motion was Commissioner Harper asked if we do this extension, does that mean going back to the  Emergency due to the Novel COVID-19 Coronavirus.  seconded by Mayor LaCascia. televised meetings? City Attorney Cloud stated No.  Vice Mayor Kimsey asked should a timeline be ini this Resolution? take quick as needed by virtue of the executive order.  City Attorney Cloud stated no, we are in hold mode in Phase 2. This enables the city to  ROLL CALL VOTE:  Commissioner Harper-aye, Mayor LaCascia = aye, Commissioner Blethen - aye, Commissioner Carroll - aye,  Vice Mayor Kimsey aye  Motion carried unanimously. CITY ATTORNEY ITEMS  Ordinance 2020-08 - AN ORDINANCE OF POLK CITY, FLORIDA, RELATED TO PUBLIC HEALTH; REQUIRING PERSON THATI LIVE, WORK, VISIT ORDOI BUSINESS IN POLK CITY TO WEAR FACE COVERINGS IN CERTAIN PUBLIC PLACES TO STOP OR SLOW THE SPREAD OF NOVEL CORONAVIRUS DISEASE 2019 (COVID-19); PROVIDING EXCEPTIONS; ESTABLISHING ENFORCEMENT AND PENALTY PROVISION FOR VIOLATIONS; PROVIDING FINDINGS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. City Attorney Cloud discussed briefly his findings regarding the face masks. This proposed Ordinance is based on Winter Haven's Ordinance currently in place. Polk County has rejected the mandate. Polk City has an option to go for or against this Martina Gangleman (13331 Commonwealth Avenue North) inquired about who decided to charge the folks $150 for not wearing the mask. Where will this money go, if collected? Everyone can't afford this fee. What about the people that refuse to wear their mask?  Ordinance. Of course, the City Commission can do nothing.  She does not wear a mask when going into the stores.  5    Mayor LaCascia responded the money will go into the General Fund. Ifa person does City Manager Jacksonstated if a business has a mask mandate sign and law enforcement is called, a person can be trespassed for not wearing a mask in the specific business. Commissioner Blethen stated Florida is fourth in the nation with the Coronavirus. The death rate has decreased in the last week. What is the major priority here? This is a  not pay a fine. No one will be arrested.  much bigger problem and not a 100% answer.  Commissioner Carroll - In favor of wearing a mask - encouraging  Commissioner Harper - mixed emotions = wears a masks and gloves for his personal health reasons. People have a choice when they go into an establishment. If the store says wear a mask or don't enter, you must abide by the rules. Opinion is to Sugges!". Mayor LaCascia - is not in favor of mandates, if there are no consequences. Is in favor Motion by Mayor LaCascia to approve the Ordinance 2020-08; this motion was Kwame Fosu (Owner, Sunshine Pharmacy) spoke in reference to the Covid-19 and  Vice Mayor Kimsey - In favor of"Sugges".  of Ordinance 2020-08.  seconded by Vice Mayor Kimsey.  wearing face masks. Is in favor or mandatory mask in Polk City.  Roll Call Vote:  Commissioner Harper-aye, Vice-Mayor Kimsey-aye, Commissioner Carroll-aye, Commissioner Blethen-aye, Mayor LaCascia-aye  Motion carried unanimously. CITY MANAGER ITEMS  Broadway Boulevard Multi-Use Trail - FDOT will be accepting applications for the construction of the Broadway Boulevard Multi-Use Trail. Polk City will need to go out to bid as well for the utilities - moving lines and relocating valves. Bid process will be 21 Christmas Parade-Workshop with the Commission on parade route - will send possible Rental of City Facilities - because of COVID-19 guidelines, these rentals are still on Tree Removal (old Public Works Facility) - in preparation of hurricane season, we are  days.  meeting dates. hold.  in the process of removing trees.  6    Influent Flow Meter at Cardinal Hill - This meter is going in and out and therefore needs to be replaced so there will not be any compliance issues with FDEP. We have received three quotes: 1) Jan and Jeff $11,600; 2) Central Water and Electric utility Services Staff is recommending approval of Polk City using Jan and Jeff in the amount of$11,600. Ar motion is necessary as this item is over the City Manager's spending limit of $10,000. Motion by Commissioner Harper to approve using Jan and Jeff in the amount of $11,600 to replace the influent meter at the Wastewater Treatment Plant; this motion was Mask Giveaway Thursday, July 23 and Friday, July 24 from 2 pmi to 4 pm at thel DBCC. Three masks per person. Information is on the website along with a map showing the Freedom Park Mural - being done by the Youth Group at First Baptist Church, Polk City. The mural will include a soldier, a child, a flag and an eagle. Will be done this week,  $13,000, and 3) AWK Industries - $15,000.  seconded by Mayor LaCascia. Motion carried unanimously.  lineup route.  weather permitting. COMMISSIONER ITEMS and this food is free. coming.  Commissioner Carroll - The Food Drive has been very productive. Pass the word along Commissioner Harper - Thanked everyone for their comments. Thanked everyone for  Vice Mayor Kimsey - None Commissioner Blethen - None entrances and in front of City Hall.  Mayor LaCascia - The First Responder Thank You Boards will be placed at all Polk City Mayor LaCascia is Polk City's delegate to the Transportation Planning Organization (TPO). At the last meeting we received a print-out of the money TPO will spend in Polk County from 2020-2025. What's in the budget for Polk City? NOTHING! Money will be spent on the Interchange Reconstruction Project in Northeast Lakeland (I-4, to University  Boulevard to Tomkow Road). ANNOUNCEMENTS - None ADJOURNMENT - 8:18 pm  Patricia Jackson, City Manager  Joe LaCascia, Mayor  7    City Commission Meeting August 17, 2020  CONSENT AGENDA ITEM:  Department Monthly Reports  INFORMATION ONLY X ACTION REQUESTED  ISSUE: Department Reports attached for review and approval.  ATTACHMENTS:  Monthly Department Reports for: 1. Building Permits Report - July 2020 2. Code Enforcement Report - June 2020 3. Financial Report - June/July 2020 4. Library Report - July 2020 5. Polk County Fire Rescue - N/A 6. Polk Sheriff's Report - July 2020 7. Public Works Report-J June/July 2020 8. Utilities Report - July 2020  ANALYSIS:  STAFF RECOMMENDATION: Approval of Department Reports via Consent Agenda    Polk City Permits Added From: 07/01/20 To:07/31/2020  DEMO Permit Number BT-2020-10810 ELECTRICAL Permit Number BT-2020-11054 BT-2020-9636 GAS Permit Number BT-2020-11052 MECHANICAL Permit Number BT-2020-10540 BT-2020-11001 BT-2020-9483 BT-2020-9836 POOL Permit Number BT-2020-11126 BT-2020-9450 RE-ROOF Permit Number BT-2020-10777 BT-2020-9445 RESIDENTIAL Permit Number BR-2020-6157 BR-2020-6160 BR-2020-6161 Polk Clty Permits  Address  Declared) Value Date Added 7,500,00 07/23/2020 $7,500.00  557 HOMECOMING WAY, POLK CITY, FL 33868  Subtotal:  Address  Declared' Value Date Added 4,500.00 07/29/2020 500,00 07/01/2020 $5,000.00  642 GORDON RD, POLK CITY, FL 33868 510NCITRUS GROVE BLVD, POLK CITY, FL 33868  Subtotal:  Address  Declared Value Date_Added 1,500.00 07/29/2020 $1,500.00  211 N COMMONWEALTH AVE, POLK CITY, FL 33868  Subtotal:  Address  Declared Value Date Added 8,937.00 07/21/2020 2,200.00 07/29/2020 5,941.00 07/02/2020 5,959.00 07/09/2020 $23,037.00  222 TRAIL VIEW WAY, POLK CITY, FL 33868 134 CARTER BLVD, POLK CITY, FL 33868 503 ROSEWOOD LN, POLK CITY, FL 33868 767 TEABERRY TRL, POLK CITY,FL 33868  Subtotal:  Address  Declared Value Date Added 48,000.00 07/31/2020 37,000.00 07/01/2020 $85,000.00  87741 MICMAC CT, POLK CITY, FL: 33868 8746 HINSDALE HEIGHTS DR, POLK CITY, FL 33868  Subtotal:  Address  Declared.Value Date Added 3,000.00 07/24/2020 10,250.00 07/02/2020 $13,250.00  420 ROSEWOOD LN, POLK CITY, FL 33868 240 TRAIL VIEW WAY, POLK CITY,FL: 33868  Subtotal:  Address  Declared Value Date Added 101,000.00 07/01/2020 28,000.00 07/01/2020 108,900.00 07/01/2020 8/3/2020 11:02AM  88421 FOXI DR, POLK CITY, FL 33868 8869: SUNAPEE LOOP, POLK CITY, FL: 33868 8822 FOX DR, POLK CITY, FL 33868  Page 1of2    BR-2020-6164 BR-2020-6250 BR-2020-6558 BR-2020-6573 BR-2020-6631 BR-2020-6634 BR-2020-6686 BR-2020-6740 BR-2020-6744 BR-2020-6749 BR-2020-6759 BR-2020-6765 BR-2020-6767 BR-2020-6779 BR-2020-6787 BR-2020-6791 BR-2020-6850 BR-2020-7003 BR-2020-7119 BR-2020-7246 BR-2020-7300  5421 ANIMOSH CT, POLK CITY, FL 33868 222 TRAIL VIEW WAY, POLK CITY, FL: 33868 438 ASHLEY RD, POLK CITY, FL: 33868 300 BAYBERRY DR, POLK CITY, FL 33868 440 SUNRISE BLVD, POLK CITY, FL: 33868 440 SUNRISE BLVD, POLK CITY, FL 33868 224 S CITRUS GROVE BLVD, POLK CITY, FL: 33868 5405 ANIMOSH CT, POLK CITY, FL 33868 8766 MICMAC CT, POLK CITY, FL 33868 8740 MICMAC CT, POLK CITY, FL: 33868 8834 FOX DR, POLK CITY, FL: 33868 8708 MICMAC CT, POLK CITY, FL 33868 8818 FOXI DR, POLK CITY, FL: 33868 8712 MICMAC CT, POLKO CITY, FL: 33868 8728 MICMAC CT, POLK CITY, FL: 33868 8724 MICMAC CT, POLK CITY, FL 33868 8767 RINDGE RD, POLK CITY, FL 33868 517EA ARBORVITAE LN, POLK CITY, FL 33868 111 CLEARWATER CT, POLK CITY, FL: 33868 506. 2ND ST, POLK CITY, FL 33868 315 HONEY BEE LN, POLK CITY, FL 33868  96,800.00 07/01/2020 10,000.00 07/04/2020 5,814.25 07/13/2020 5,000.00 07/14/2020 1,200.00 07/15/2020 1,200.00 07/15/2020 300.00 07/15/2020 96,800.00 07/17/2020 101,200.00 07/17/2020 135,300.00 07/17/2020 108,900.00 07/17/2020 111,100.00 07/17/2020 108,900.00 07/17/2020 127,600.00 07/17/2020 96,800.00 07/17/2020 108,900.00 07/17/2020 2,400.00 07/20/2020 500.00 07/22/2020 500.00 07/27/2020 5,000.00 07/28/2020 2,490.00 07/29/2020  Subtotal: $1,364,604.25 Grand Total: $1,499,891.25  Ho Dale  35 SFR halhy Dup  Polk City Permits  Page 2of2  8/3/2020 11:02 AM    1]  Code Enforcement Report  JUNE 2020  DATE 6/2/2020 6/2/2020 6/2/2020 6/2/2020 6/3/2020 6/3/2020  ADDRESS CITYWIDE 228 TRAILVIEW WAY CITY HALL CITYHALL 7184THST 550 CITRUS GROVE  VIOLATION SNIPESIGNS INSPECTED CHECKED MESSAGES AND RETURNED PHONE CALLS FILED PHOTOS INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED UPDATED ON CASE AND QUESTIONS BUILDING W/O PERMIT VARGROWIH/UPTSTAION VILATION BUILD WO PERMIT/POOL HOUSE#S  STATUS REMOVED1 14 COMPLIEDO C/O OFFICE OFFICE COMPLIED C/O COMPLIEDC/O LETTER COMPLIEDC/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O OFFICE /PHONE LETTER SENT LETTER SENT LETTER SENT  6/3/2020 OSCOMMONWEALTF (1STST.)  6/3/2020 6/3/2020 6/3/2020 6/4/2020 6/4/2020 6/4/2020 6/4/2020 6/4/2020 6/4/2020 6/4/2020 6/24/2020 6/24/2020 6/9/2020 6/16/2020 6/17/2020  2171 LARKSPUR 7184THST 550 CITRUS GROVE 6462NDST 6174THST 210 TRAILVIEW 204 PINE 206 CITRUS GROVE 119 CITRUS GROVE 104 SUNSHINE 6443RDST 224 CITRUS GROVE 112 CLEARWATER 125 CARTER RD 7292NDSTREET    6/24/2020 6/25/2020 6/25/2020 6/25/2020 6/11/2020  258 SUNSET 518 SUNRISE 516: 2NDSTREET 4395 SUNRISE 7454THSTREET  UNWOIBASOVERGROWTA JUNK/ OVERGROWTH JUNK/ OVERGROWTH INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED INSPECTED SNIPESIGNS  LETTER SENT LETTER SENT LETTERSENT COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O COMPLIED C/O REMOVED 13  2)  6/17/2020 OCOMMONWEALTH /1ST STREET  6/9/2020 6/17/2020 6/11/2020 6/11/2020 6/18/2020  6392NDST 6422NDST OLAKESHORE CT 111 PALMETTOLN CITY WIDE    07/13/2020 12:14 gb614_Pg.phplJob No: 48674 Account Number 01-101-100 01-101-800 01-101-801 01-101-802 01-101-803 01-101-990 01-102-100 01-115-120 01-115-200 01-117-100 01-133-101 01-153-302 01-153-303 01-160-902 01-160-903 01-202-900 01-208-200 01-208-300 01-208-320 01-208-330 01-217-200 01-218-200 01-218-320 01-218-327 01-218-410 01-218-700 01-243-100 01-271-100  POLK CITY Simple Balance Sheet  Page 1of1 USER: JOANNAK Ending Bal 2,220,207.13 184,759.45 119,017,72 356,774.72 370,981.66 859.09 575.00 1,696.24- 7,540.20 77,070.75- 8,857.17- 45,928.19 30,851.89 148,462.48 160,917.77 177,764.59 62,924.00 37,623.22 3,485.00 6.00 5,113.00 895.43 1,918.97 186.59 17.50 7,521.76- 0.54 2,613,96 171,23- 359.04- 755.69 20.00- 15,316.15 15,316.15- 3,257,977.11  For Fiscal Year: 2020 thru Fiscall Month: Jun, for Fund: 01  Account Title Cash Checking  Net Amount  Cash GF Police Public Safety Impact Fees Cash GF Fire Public Safety Impact Fees Cash GF Recreation Impact Fees Cash - GF Gen Gov't Facilities Impact Fees Van Fleet Cycling Challenge Cash on Hand Accounts Receivable Utilities Accounts Receivable Local Bus Licenses Accounts Receivable Year End Allowance for Bad Debt Due From Other Governmental Units Due from Others (Franchise & Public Serv. Tax) Restricted Cash - New Local Opt Gas Tax Restricted Cash Building and Codes Reserve Account Reserve Acct Emergencies & Contingency ** TOTAL ASSET** Accounts Payable Customer Deposits Due to BCAIB - Builder's Surcharge Due to County Impact Fees Due to DCA - Bldg Permit Surcharge Due to Dept of Business License Fees Due to PCSO Police Education Revenue Accrued Sales Tax Payroll Taxes Payable FRS Retirement Payable Supplemental Insurance Payable CHL- Child Support Dental Plan Payable Vision Plan Payable ICMA-RC ** TOTAL LIABILITY* Encumbrances Placed Reserved for Encumbrances ** TOTAL ENCUMBRANCE** Fund Balance Unreserved ** TOTAL EQUITY** ** TOTAL REVENUE** TOTAL EXPENSE** TOTAL LIABILITY AND EQUITY  3,799,939.73  44,543.87 0.00 3,257,977.11 2,323,534.65 1,826,115.90 3,799,939.73    519385 :  TNE  60  TNA  3  BpN m  :  e    ::    S588  16  6    888    8888    8    38488  88888  1155,55  888888 06666  Co S 55 :  60  de 60 -  00 dee  :8888    0888668660    888  3  35    8888  isis  8888    E a    8  888988 o 9  :  6o  88888  8888888 00 8:888 d: 00 8888 828 o 00 la :n 8e 315    o0    POLKCITY Simple Balance Sheet  07/28/2020 12:17 gb614_Pg.phplob! No: 49344 Account Number 05-101-100 05-101-710 05-101-800 05-101-913 05-101-915 05-101-916 05-101-917 05-101-918 05-101-919 05-101-920 05-115-100 05-115-130 05-115-200 05-117-100 05-155-300 05-159-100 05-159-200 05-160-902 05-160-903 05-160-904 05-160-906 05-161-900 05-164-100 05-164-900 05-164-910 05-165-900 05-166-900 05-167-900 05-169-900 05-202-100 05-202-305 05-202-900 05-203-100 05-203-610 05-203-615 05-203-710 05-203-750 05-203-910 05-208-305 05-234-100 05-234-901 05-235-900 05-243-100 05-245-100 05-250-100  Page 1of2 USER: JOANNAK Ending Bal 1,717,580.31 52,898.45 1,806,577.04 433,710.30 43,552.02 17,613.63 18,844.38 492.53 28,636.00 362,044.56 35,633:01 67,278.41 344,321.00- 42,672.50- 68,835.67- 37,363.62 104,459.01 810,157.03 225,392.00 48,044.00 25,778.78 25,000.00 2,730,735.50 12,366,533.92 33,331,74 316,892.74- 470,766.19 3,850,216.76- 2,080,266.14 177,787.59- 206,855.85 93,375.00 326,544.56 53,780.56 2,059,675.11 35,641.30 1,284,410.00 8,185,000.00 45,074.7B 602,902.93 10,236.23- 14,550.02 399,250.00 399,250.00- 206,873.16 165,010.16 165,010-16-  For Fiscal Year: 20201 thrul Fiscal Month: Jun, for Fund: 05  Account Title Cash - Checking Cash Enterprise Fund Capital Imprvmnts Cash Sewer Impact Pee Account Cash Water Impact Fee Account DEP Loan - Sinking Fund Tax Exempt Leasing Sinking Fund US Bank - Sink Fund US Bank Renewal & Replacement Series DEP Loan WW531400 Sink Fund DEP Loan WW531402 Sink Fund Cash - Customer Deposits Accounts Receivable Utilities Accounts Receivable Readiness to Serve Accounts Reçeivable Year End Allowance for Bad Debt Allowance for Uncollectible A/R Prepaid Insurance Deferred Bond Series 2017 Deferred Outflows Related to Pension Deferred Outflows Loss on Refunding Reserve Account Reserve Acct Emergencies & Contingency Reserve Acct CIP Purchases Reserve Acct Cardinal Hill Fixed Assets Land Utility Plant in Service Improvements Other than Buildings Improvements Other than Buildings MOSN Acc.Dep. - Improvements Other than Build Equipment & Furniture Accumulated Depreciation Equipment CIP - Construction Costs ** TOTAL ASSET** Accounts Payable Construction Payables Retainage Payable Customer Deposits Accumulated Interest Payable SRF Loan WW51201P SRF Loan WW53140/50531401 Effluent Disposal SRF Loan H#531402/90531403 US Bank 2017 Bond Note Tax Exempt Leasing Loan Unamoritized Bond Premiums - US Bank Taxes Payable Deferred Inflows Related to Pension L-T-D - Current Portion Less: Current Portion of LTD Net Pension Liability ** TOTAL LIABILITY** Encumbrances Placed Reserved for Encumbrances ** TOTAL ENCUMBRANCE** Contributed Capital  Net Amount  19,408,207.74  12,926,659.45  0.00    07/28/2020 12:17 9b614.Pg.phplJob No: 49344 Account Number 05-255-100 05-271-100 05-271-200 05-272-100  Simple Balance POLKCITY Sheet  Page 2of2 USER: JOANNAK Ending Bal 36,514.20 4,066,494.82 10,071.23- 734,552.82  For Fiscal Year: 20201 thrul Fiscall Month:. Jun, for Fund: 05  Account Title Change in Fund Balance Fund Balance Unreserved Net Asset Adjustment Account Retained Earnings ** TOTAL EQUITY** ** TOTAL REVENUE** ** TOTAL EXPENSE** TOTAL LIABILITY AND EQUITY  Net Amount  2,630,393.18 1,575,050.90 19,408,207,74    EE  o   "    SSEF  5E8 51555 L BASA8  AE  88 - 38  d -    888885    -  53535    o    o0 a    gs  a        POLKCITY Simple Balance Sheet  08/10/2020 15:39 gb614_Pg.phplJob No: 49784 Account Number 01-101-100 01-101-801 01-101-802 01-101-803 01-101-990 01-102-100 01-115-100 01-115-105 01-115-200 01-117-100 01-133-100 01-133-101 01-153-303 01-160-902 01-202-100 01-202-200 01-202-900 01-208-200 01-208-300 01-208-310 01-208-320 01-208-330 01-218-100 01-218-200 01-218-320 01-218-400 01-218-410 01-243-100 01-245-100 01-271-100  Page 1 of1 USER: JOANNAK Ending Bal 2,175,944.84 187,339.41 120,398.16 360,935.36 377,973.70 859.09 575.00 5,079.84- 9,792.15 7,540.20 77,070.75- 8,857.17- 45,928.19 30,851.89 152,935.94 177,764.59 62,924.00 6,9B4.49 35,025.76 2,985.00 6.00 39,703.08 1,120.03 2,076.34 198.89 3.50 399.60 9,120.15- 3,204.72 110.14 864.47 13,262.15 13,262.15- 3,252,128.50  For Fiscal Year: 2020 thru Fiscal Month:Jul, for Fund: 01  Account Title Cash Checking  Net Amount  Cash GF Police Public Safety Impact Fees Cash GF Fire Public Safety Impact Fees Cash GF Recreation Impact Fees Cash - GF Gen Gov't Facilities Impact Fees Van Fleet Cycling Challenge Cash on Hand Accounts Receivable Utilities Accounts Receivable Invoicing Accounts Receivable Local Bus Licenses Accounts Receivable Year End Allowance for Bad Debt Due From Other Governmental Units Due from Others (Franchise & Public Serv. Tax) Restricted Cash New Local Opt Gas Tax Restricted Cash Building and Codes Reserve Account Reserve Acct Emergencies & Cont ingency ** TOTAL ASSET** Accounts Payable Accounts Payable Year End Customer Deposits Due to BCAIB Builder's Surcharge Due to County - Impact Fees Due to DCA - Bldg Permit Surcharge Due to Dept of Business License Fees Due to PCSO - Police Education Revenue Accrued Sales Tax Payroll Taxes Payable FRS Retirement Payable Supplemental Insurance Payable Dental Plan Payable Vision Plan Payable ** TOTAL LIABILITY** Encumbrances Placed Reserved for Encumbrances ** TOTAL ENCUMBRANCE* Fund Balance Unreserved ** TOTAL EQUITY** ** TOTAL REVENUE** ** TOTAL EXPENSE** TOTAL LIABILITY AND EQUITY  3,781,672.53  83.561.87 0.00 3,252,128.50 2,490,124.66 2,044,142.50 3,781,672.53    4317135  335 : TE  E35 s TE  PHE -        Nee    00    00e        8  88  Raao 9  1  88888  888 a  >   00 80    SS  sss  D6  ne  a 8    55545  E B5  a -  155555  333  535 55E 5    5855 o  888883   088 I :s  888888 A  60     88888885    >    08/10/2020 15:40 gb614.Pg.phplJob! No: 49785 Account Number 05-101-100 05-101-710 05-101-800 05-101-900 05-101-915 05-101-916 05-101-917 05-101-918 05-101-919 05-101-920 05-115-100 05-115-130 05-115-200 05-117-100 05-117-200 05-155-300 05-159-100 05-159-200 05-160-902 05-160-903 05-160-904 05-160-906 05-161-900 05-164-100 05-164-900 05-164-910 05-165-900 05-166-900 05-167-900 05-169-900 05-202-100 05-202-300 05-202-305 05-203-100 05-203-600 05-203-615 05-203-710 05-203-750 05-203-910 05-208-305 05-225-100 05-234-100 05-234-901 05-235-900 05-243-100 05-245-100 05-250-100  POLKCITY. Simple Balance Sheet  Page 1of2 USER: JOANNAK Ending Bal 1,306,083.18 52,898.45 1,828,652.04 442,445.30 58,069.36 19,570.70 569,225.00 18,844.38 656.70 42,954.00 368,815.76 19,561.34 67,166.11 344,321.00- 42,672.50- 68,835.67- 37,363,62 104,459.01 810,157.03 225,392.00 48,044.00 25,778.78 25,000.00 2,730,735.50 12,366,533.92 33,331.74- 33,331.74 316,892.74- 470,766.19 3,850,216.76 2,080,266.14 196,611.97- 206,855.85 93,375.00 328,255.76 53,780.56 2,059,675.11 35,641.30 1,284,410.00 8,185,000.00 45,074.78 602,902.93 10,157.45- 14,550.02 399,250.00 399,250.00- 206,873.16 164,183.16 164,183.16- 598,715.40  For Fiscal Year: 2020 thru Fiscal Month: Jul, for Fund: 05  Account Title Cash - Checking Cash Enterprise Fund Capital Imprvmnts Cash Sewer Impact Fee Account Cash Water Impact Fee Account DEP Loan Sinking Fund Tax Exempt Leasing Sinking Fund US Bank Sink Fund US Bank Renewal & Replacement Series DEP Loan WW531400 Sink Fund DEP Loan WW531402 Sink Fund Cash - Customer Deposits Receivable Utilities Accounts Receivable Readiness to Serve Accounts Receivable Year End Allowance for Bad Debt Allowance for Uncollectible A/R Prepaid Insurance Deferred Bond Series 2017 Deferred Outflows Related to Pension Deferred Outflows LOES on Refunding Reserve Account Reserve Acct Emergencies & Contingency Reserve Acct CIP Purchases Reserve Acct Cardinal Hill Fixed Assets Land Utility Plant in Service Improvements Other than Buildings Improvements Other than Buildings MOSN Acc. Dep. Improvements Other than Build Equipment 6 Furniture CIP - Constructi ion Costs TOTAL ASSET** Accounts Payable Construction Payables Retainage Payable Customer Deposits Accumulated Interest Payable SRF Loan WW51201P SRF Loan MW53140/90531401 Effluent Disposal SRF Loan WH531402/56531403 US Bank 2017 Bond Note Tax Exempt Leasing Loan Unamoritized Bond Premiums US Bank Taxes Payable Deferred Inflows - Related to Pension L-T-D Current Portion Less: Current Portion of LTD Net Pension Liability TOTAL LIABILITY** Encumbrances Placed Reserved for Encumbrances ** TOTAL ENCUMBRANCE** Contributed Capital  Net Amount  Depreciation Equipment  19,096,499.84  12,909,625.05  0.00    POLK CITY Simple Balance Sheet  08/10/2020 15:40 9b614.pgpphp.JobNo: 49785 Account Number 05-255-100 05-271-100 05-271-200 05-272-100  Page 2of2 USER: JOANNAK Ending Bal 36,514.20 4,066,494.82 10,071.23- 734,552.82  For Fiscal Year: 20201 thru Fiscal Month: Jul, for Fund: 05  Account Title Change in Fund Balance Fund Balance Unreserved Net Asset Adjustment Account Retained Earnings * TOTAL EQUITY** ** TOTAL ** TOTAL EXPENSE** TOTAL LIABILITY AND EQUITY  Net Amount  5,426,206.01 2,868,773.05 2,108,104.27    3553 -  d M    :888  :  838  :    88    3588    85  311433991994    o  8888881 00  8080  ee         o  em  46  48 NNO 88 05 Hoom NOON NNO 0000 0000 d o05 0000 0000  B 5  88388 3E888    NON CE NN 1 4 3 NHom REom  8888  - EE 4"U N 3  8883 H9AE Nmoi #805 B  9  uE 898E    POLK COUNTY SHERIFF'S OFFICE DEPARTMENT OF LAW ENFORCEMENT  STATISTICAL DATA  West  Division  August 04, 2020  Northwest  District  To: From:  Patricia Jackson, City Manager Deputy Christina Poindexter #7376  Subject: Statistical report for. July, 2020.  ACTIVITY FELONY ARREST AFFIDAVITS FELONY MISDEMEANOR ARREST AFFIDAVITS MISDEMEANOR OUT OF COUNTYISTATE WARRANT ARRESTS PROCAP WARRANT ARREST TOTAL ARRESTS SEARCH WARRANTS FIELD INTERROGATION REPORTS TRAFFIC CITATIONS INTELLIGENCE REPORTS STOLEN PROPERTY RECOVERED HRS. TRANSPORTINGI AGENCIESIDIVISIONS OFFENSE REPORTS NARCOTICS SEIZED ASSETS SEIZED PATROL NOTICES FOXTROT REPORTS TOW-AWAY NOTICES COMMUNITY CONTACTS TRAFFIC STOPS TOTAL DISPATCHED CALLS FOR SERVICE  4 0 5 0 3 12 0 0 6 0 0 0 47 0 0 0 4 0 2300 10 74  PCSO FORM: 327 (REV 12/20/07)  Page lof2    In. July 2020, there were one (1) PROCAP captured crimes as compared to sixteen (16)i in July 2019. In July 2020 there was one reported burglary ofa conveyance. During this incident the locks were cut off ofa an enclosed trailer which was full of! house hold items due to moving from New York to Polk City. In this particular incident no items were reported stolen at the time ofthe report. This cases is related to several other cases ofthis nature with the same suspect vehicle, and pose as ai trend for Polk County and surrounding jurisdictions at this time. We are: now  sitting at -50% in crimes as compared to last year to date.  CASE STATVS  GRANDT THEFT  PCSO- 2020-07-27/ 2020-07-27/ Mon 315 COMMONWEALTHA AVEN Unks suspc cutthen masterlocko offthee enclosedtrailert butd didnt  200028999 0558hrs 0610hrs  WARRENS RVPARK  remove anything/ /Videoint thea area captureda awhite2 2tone F2504drv witho darkt tintedv windows circulatingthe! location  Department of Law Enforcement Polk City 2019-2020  Janusry February March April  August Soptember October Noverber December  Monthy ID Change! 2019/2020 0% 0.010.1 0% 0.10.0 0% 0.70.1 0% 0.10.1 0% 2.30.1 0% 0.603 0% 0.60.4 0% 0103 0% 0.00.0 -200% 0.0 0.4 0% 0.0 0.3 -67% 4.62.3 50% -50%  Robbery Burg. Business Burg. Residence urg. Siructure Burg. Conveyance Vehicle Theft Grand Theft PottT Theft Maill Theft Retai Theft Criminal Mischief Totals EChange FRS  25% 33% DIV/OI  PCSO FORM3 327 (REV 12/20/07)  Page lof2    Public Works Report June 2020  Public Works  Summary: Public Works maintained all Public facilities to include Library, City Hall, Freedom Park, Bronson Center, Old Public Works Facility, Courts, McManigle Park,  Fishing Pier, New Public Work/Utility facilities, and Activity Center.  Mowed and trimmed all City facilities  Inspected Freedom Park, Recreation Courts, Fishing Pier, and McManigle Park,  Monitored and serviced all storm drains throughout Polk City. plumbing, Building Maintenance, Vehicle Maintenance, etc.)  Completed Work Orders-(Repairs and Maintenance of Equipment, Electrical, Ongoing effort to build storage shelves in our Old Public Works building to Inc collaboration with Feeding Tampa Bay we held Food Drive at Bronson Center  support storage of old Records. to help feed our Neighbors bi-weekly.  July Objectives:  Continue maintaining the mowing and preventive maintenance of all City facilities, service equipment. Public Works will be replacing the border on the Freedom Park  playground. Continuing our food drive efforts.    Public Works Report  July 2020  Public Works  Summary: Public Works maintained all Public facilities to include Library, City Hall, Freedom Park, Bronson Center, Old Public Works Facility, Courts, McManigle Park,  Fishing Pier, New Public Work/Utility facilities, and Activity Center.  Mowed and trimmed all City facilities  Inspected Freedom Park, Recreation Courts, Fishing Pier, and McManigle Park,  Monitored and serviced all storm drains throughout Polk City. plumbing, Building Maintenance, Vehicle Maintenance, etc.)  Completed Work Orders (Repairs and Maintenance of Equipment, Electrical, Ongoing effort to build storage shelves in our Old Public Works building to Inc collaboration with Feeding Tampa Bay we held Food Drive at Bronson Center Amee Gainey and the First Baptist church Youth Group created a beautiful mural Installed temporary welcome and support signs for our First Responders  support storage of old Records. tol help feed our Neighbors bi-weekly.  at Freedom Park.  August Objectives:  Continue maintaining the mowing and preventive maintenance of all City facilities, service equipment. Public Works will be replacing the border on the Freedom Park  playground. Continuing our food drive efforts.    UTILITY DEPARTMENT  July 2020  Summary: Water/Wastewater continued to maintain sampling oft the Wastewater Treatment Plant. Continued to pull all samples fori the Water Plants. All samples remain in compliance, Completed monthly MORS/DMR reports for DEP. Completed monthly SWFWMD report as required. Met all ofDEP requirements to keep Polk Cityi ino compliance. All lift stations continue to have preventive maintenance. We are continuing to get all Verbatims/Auto dialers running properly. Generators are being maintained.  Service Completed  Monthly meter reading Nor reads for the Utility Billing Work Orders_ 129 Turn On_29 Turn off 33  Misc. - (rereads, laptops, vacation turn on, TBO from shutoff).43 Fire Hydrant flushing and maintenance is being doneweekly. Continue preventative maintenance/nousekeeping is being done. WWTF is maintained by wasting, decanting, housekeeping. Mowed all water plants, wastewater plants and reclaim ponds  Valve exercising is being done weekly.  Sprayed weeds at Freedom Park, 2nd St. Park, Perk Ponds, Lifstations, Jacob's  Tennis Court, WTPS, Utility Office Working on Valve Isolation Program  August Objectives: Meet all DEP requirements to stay in compliance, continuing to maintain work orders and locates. Continue working on Valve Isolation Program.  Submitted By: Lori Pearson, Utility Supervisor    City Commission Meeting August 17, 2020  AGENDA ITEM #1:  Planning Commission Candidate Application  INFORMATION ONLY X ACTION REQUESTED  ISSUE:  Planning Commission Candidate Application  ATTACHMENTS:  Antonio Thomas Volunteer Application  ANALYSIS:  Polk City's Planning Commission currently two alternate vacancies. Polk City's Land Development Code requires that members of the Planning Commission must be a registered voter of Polk City, and at full-time resident of the city, owners or appointed employees of businesses within the City limits, or On July 15, 2020, Mr. Antonio Thomas submitted his volunteer application to serve on the Planning Commission as an alternate. Mr. Thomas is a resident of Polk City and meets all the requirements to serve on the Planning Commission as an alternate. Mr. Thomas' term will be set for January 1, 2020  live within five miles of the City limits in unincorporated Polk County.  and end December 31, 2022. STAFF RECOMMENDATION:  Approve Antonio Thomas as Planning Commission Alternate    Please return this form to: City Manager's Office City ofl Polk City POI Box 1139 2031 Lakeshore Drive Polk City, FL33868 Fax: 863-984-2334 For more information Call!: 863-984-1375  Volunteer Program Application  Polk City's volunteer program gives citizens the opportunity tol become actively involved with various activities in City government. Thej program is designed toi increase citizen involvement: in the day-to-day operations ofyour city's government. You can use, your talents, learn news skills, organize, facilitate, teach and share. Who can volunteer? Just about anyone- professionals, retirees, craftspeople, secretaries or skilled laborers, students, families, singles, and youth. You can volunteer as an individual ori in a group. You can give a day, a week, ai month, or longer.  I'm ready :. sign me up: Name: Antoni6 ThoMAs Address: $95 Marklen Loop City: PolK City Tell us about yourself: S ASE  Home Phone: 863-968-7055  Work Phone: Zip: 37868 Today's Date: 7115/20  E-mail TaolapQuahacen  Work Experience: Baysand Gicls Cluby Curfent Educahor gt Auburadalc Hgia Schanl, Foot bal) wresthag Cogci qt AHS Education: Bachelor Of Scienct in Business Ashinishratien Previous Volunteer Experience: City of Lake Alfrec, cily of Aubutndalc  Age:  a7over 18 yrs.  Under 18 yrs., ifchecked, please list age:,  Times Available for Volunteer Work: (Please check all that are applicable)  Day  Morning  Afternoon  Evening  Monday Tuesday Wednesday Thursday Friday Saturday Sunday  -  What do you hope to gain from your volunteer experience?  wowl ke To Leorn  The city Mafe while help the lacal goveroAcn-t as Well  as jocal Citizen.  (over)  PlemsinCowath    Iam interested in volunteering for the following:  Parks and Recreation General Office Work (Keep Polk City Beautiful Commission Telephone/Ofice Reception City Council Appointed Board or Commission Window of Work  Purging Files Special Projects/Mailings Litter Control Program Library  Didn'tsee anything ofinterest on the list? Completing this simple form will help us to quickly identify your particular skills, knowledge, and capabilities and to match you with a volunteer opportunity to consider.  My Talents  My Quests  No-Nos  Special skills, talents, interests you Areas that you would like to  Please don'task me to do any  like to use: Examples: Typing Talking top people Working with youth Administrative duties Things you do well ande enjoy doing. Don' 'ti hesitate to list something. You'dbe surprised how your talents can be utilized. 0 Talking +o PeoPle GMOHIVAHGAq!)  learn more about: Examples: Computers Bookkeeping Chairing: a committee History ofc organization Listo areas ofi interest that) youz may not have the skills to perform, but you would enjoy learning more about. e Chaicing CI CoMMiFce hcIP Makê Polk  of these: Examples: .l Public speaking Working withy youth Work with computers  Listt those things that) you) really don' t want  to do.  NA  workrny wihy yokth City BeHr than  - Pubkc Sfegkins  L fownd i+,  Signature of Applicant:  antvo Pme  Date: 7/1s/z0  For Office Use Only Date received: Placed:, Date Placed:    City Commission Meeting August 17, 2020  AGENDA ITEM #2:  APPROVAL OF LEASE AGREEMENT WITH POLK COUNTY - LEASE  FOR FIRE STATION  INFORMATION ONLY X ACTION REQUESTED  ISSUE:  Lease Agreement with Polk County - Fire Station  ATTACHMENTS: Lease Agreement ANALYSIS:  Polk County and Polk City renewed a lease agreement for certain land and building located at 200 Commonwealth in September 2015. That lease is now up for renewal, and Polk County would like to  continue with the Lease, which is a benefit for Polk City.  The renewal will be for a period of five years, which would end on September 30, 2025,  STAFF RECOMMENDATION:  Move to approve the Lease Agreement between Polk City (Landlord) and Polk County (Tenant) for a  period of five years commencing October 1, 2020 and expiring September 30, 2025.    LEASEAGREEMENT  THISLEASE AGREEMENT (the "Agreement"), is entered into as ofthel Effective Date defined in Section 30, below, by and between the POLK CITY (the "Landlord"), a Florida municipality, and POLK COUNTY (the "Tenant"), a political subdivision of the State of  Florida.  RECITALS  WHEREAS, the' Tenant, by and through its Fire Rescue Division, provides fire and rescue WHEREAS, the Landlord and Tenant entered into that certain Lease Agreement (the "Prior Agreement") having an effective date of October 1, 1990, as amended, whereby the Landlord leased certain land and improvements located at 200 Commonwealth, Polk County, Florida, to the Tenant, for the last 30 years, to facilitate timely responses to requests for rescue services in Polk City and int the adjoining unincorporated areas ofPolk County; and WHEREAS, the Prior Agreement expires on September 30, 2020; and  services for the unincorporated portions of] Polk County; and  WHEREAS, the Landlord and the Tenant have mutually agreed to enter into this Agreement whereby the Landlord will continue to lease the Premises, as defined in Section 2,  below, to Tenant for an additional five years; and  WHEREAS, the Landlord acknowledges that all the items transferred to the Tenant as noted in Section 1 of the Prior Agreement have been discarded due to normal wear and tear and aging and, notwithstanding anything to the contrary contained in the Prior Agreement, including, without limitation, Section 9 thereof, shall not be transferred back to the Landlord nor replaced  with like kind equipment.  NOW, THEREFORE, in consideration of the mutual covenants stated herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby 1. RECITALS. The foregoing recitals are true and correct and are incorporated into this 2. LEASE. Landlord hereby leases and rents to the Tenant that certain land and building located at 200 Commonwealth, Polk County, Florida, as shown in Exhibit "A", (the "Premises"), and as further described in this Agreement, and the Tenant hereby leasesand rents the Premises from Landlord, in accordance with the terms and conditions stated in this Agreement. The right of the Tenant to use and occupy the Premises under this Agreement shall include the right ofexclusive use, in common with others entitled thereto, of the Property and Building common areas as the same may be determined by the 3. TERM. The initial term (the "Initial Term") of the lease of the Premises under this Agreement shall commence on October 1, 2020 (the "Commencement Date") and shall  acknowledged, the parties hereby agree, as follows:  Agreement.  Landlord.    terminate September 30, 2025, unless extended or sooner terminated in accordance with this Agreement. The Tenant may terminate this Agreement at any time by delivering 4. RENT. The term "Rent" as used in this Agreement shall mean Base Rent as defined in this Section 4, together with any and all other amounts that are payable from the Tenant to @) Base Rent. The Tenant shall pay the Landlord an annual base rent of One and 00/100. Dollars ($1.00) for the use and occupancy oft the Premises during the Term.  ninety (90) days prior written notice to the Landlord.  the Landlord pursuant to this Agreement.  5. UTILITIES. The Tenant shall only be responsible and pay when due all fees, deposits, charges or other assessments for all separately metered utilities that service the Premises. The Landlord shall be responsible and shall pay when due all fees, deposits, charges or 6. USE OF PREMISES. The Tenant shall use the Premises to house emergency medical services personnel and equipment. The Tenant shall use and conduct its operations within the Premises in accordance with all applicable federal, state and local laws, statutes, 7. SIGNAGE. The Tenant shall be permitted to erect and maintain such signage in, on and around the Premises (to include the Building) and adjoining Property that the Tenant commonly utilizes to identify its fire and emergency medical services stations. Tenant shall beresponsible for complying with all local laws and ordinances regarding its signage. 8. ALTERATIONS AND MPROVEMENIS. Except for thel hanging of pictures or other décor on Premises interior walls or doors, the Tenant shall not make or permit anyone to make any alterations, improvements, installations, or additions (any such act an Alteration") in or to the Premises of any kind or nature whatsoever without the prior express written consent ofLandlord, which the Landlord may withhold in its discretion. 9. MAINTENANCE AND REPAIR. The Landlord shall maintain, repair, and replace the roof and structural portions of the Building including, but not limited, to the foundation, bearing and exterior walls, subflooring and slab, unexposed electrical, plumbing, and sewer systems, all in a manner consistent with similar fire and emergency medical services stations located within Polk County, Florida. Additionally, the Landlord shall be responsible to maintain, repair and replace the Building heating, ventilating and air- conditioning system, to include its motors and other component parts. The Tenant shall at its own cost and expense keep thel Premises safe, clean, well-maintained, and in good order and repair in a manner consistent with similar Polk County fire and emergency medical services stations located within Polk County, Florida. The' Tenant shall remove all garbage, trash, rubbish or other refuse from the Premises and place thes sameino collectioni receptacles 10. INSURANCE. The Landlord and the Tenant are self-insured as permitted by Florida Statutes, section 768.28, for the purposes of addressing any claim, judgment or claims bill  other assessments for all other utilities that service the Property.  regulations, and ordinances.  the Landlord will provide.  which each may respectively bel liable toj pay.  2    11. DEFAULT. If either party materially defaults in any of its obligations under this Agreement and fails to cure the same within fifteen (15) days after the date the party receives written notice of the default from the other party, then the other party shall have the right to () immediately terminate this Agreement by delivering written notice to the party ini material default, and (ii) pursue any and all remedies available inl law, equity, and under this Agreement. If, however, the default is ofa nature that it cannot be cured within such fifteen (15) day time period, an event of default shall not be deemed tol have occurred provided the party in material default commences a cure of the default within the fifteen (15) day time period and thereafter diligently and continuously works to cure the default. 12. LIABILITY LIMIT. IN NO EVENT, SHALL THE EITHER PARTY BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES OF ANY KIND OR NATURE, INCLUDING LOSS OF PROFIT, WHETHER FORESEEABLE OR NOT, ARISING OUT OF OR RESULTING FROM THE NONPERFORMANCE OR BREACH OF THIS AGREEMENT BY THE OTHER PARTY WHETHER BASED IN CONTRACT, COMMON LAW, WARRANTY, TORT, STRICT 13. ATTORNEYS FEES AND COSTS. In connection with any dispute or any litigation arising out of, or relating to this Agreement, each party shall be responsible for its own legal and attorneys' fees, costs and expenses, includingattomeys' fees, costs, and expenses 14. DAMAGE OR DESTRUCTION. If the Building located on the Premises is wholly destroyed by fire or by other casualty then this Agreement shall immediately terminate. If the Building located on the Premises is partially damaged or destroyed sO as to render the Premises unusable to the Tenant for a time period that will exceed thirty (30) days, then either party may terminate the. Agreement by giving written notice to the otherparty. 15. EMINENT DOMAIN. Ifthe whole oft the Premises, or such portion thereof as will make the Premises unusable to the Tenant for its intended purpose, is condemned or taken by any legally constituted authority for any public use or purpose, then upon either of these events, this Agreement shall terminate and the Term shall cease on the date when possession ofthel Premises is taken by the condemning authorities. lfaportionofPremises is taken, but not an amount that would make the Premises unusable to the Tenant for its intended purpose, then this Agreement shall continue in full force. and effect. 16. ASSIGNMENT. Upon delivering prior written notice to' Tenant, the Landlord may assign all of its rights under this Agreement and all of its right, title and interest in and to the Premises but, unless such assignment is in conjunction with a sale of the Property to the assignee, the Landlord shall remain liable to Tenant for all its obligations stated in the Agreement. The Tenant shall not assign this Agreement or anyi interest therein; or sublease thel Premises or any portion thereofwithout thel Landlord's prior written consent, which the 17. HAZARDOUS MATERIALS. The Landlord represents and warrants to the Tenant that, to its actual knowledge, there are no Hazardous Materials present in, on, about, or under the Property, other than Hazardous Material in such quantities as may be required for normal day-to-day business operations, which are maintained in full compliance with all  LIABILITY, CONTRIBUTION, INDEMNITY OR OTHERWISE.  incurred for any appellate proceedings.  Landlord may withhold in its discretion.  3    applicable laws. The Tenant shall not generate, store, treat, dispose of, install orotherwise cause or permit any Hazardous Material to be brought upon, kept or used in or about the Premises by the Tenant, its guests, employees, contractors, or invitees, other than Hazardous Material in such quantities as may be required for normal day-to-day business operations, which are maintained in full compliance with all applicable laws. The term Hazardous Materials" is defined toi include, but not bel limited, to any and all substances, materials, wastes, pollutants, elements or compounds in such quantities as to be classified as hazardous, toxic, dangerous or capable of posing a risk of injury to health, safety, or property by any Federal, State or local statute, law, ordinance, code, rule, regulation, order, 18. SURRENDER. Upon the expiration of the Term, the Tenant shall immediately surrender the Premises to the Landlord broom clean and in the same condition as existed on the Commencement Date, ordinary wear and tear excepted, with the Tenant having removed 19. NOTICE. All notices under this Agreement shall be in writing and may be given by any oft the following methods: (1) personal delivery, (2) certified mail, postage prepaid, or (3) viai nationally recognized overnight delivery service, prepaid, when sent to thei following:  or decree.  all its personalty from the Premises.  Ifto the Landlord:  Polk City Attention: City Manager 123 Broadway Blvd SE Polk City, Florida 33868 Polk County  Ifto the Tenant by mail:  Attention: Real Estate Services Administrator P.O. Box 9005, Drawer RE-01 Bartow, Florida 33831 Polk County 330 West Church Street Bartow, FL 33830  By physical address:  Attention: Real Estate Services Administrator  Notices shall be effective when received at the addresses specified above. A party may from time to time change the address to which its notice is to be directed by delivering written notice to the other in accordance with this Section 19. Any communications between thej parties that arei not required by this Agreement: may be sent via U.S. first-class mail, postage prepaid, at the addresses designated above, or as may otherwise be agreed 20. QUIET USE. AND ENJOYMENT. As long as the' Tenant fully complies with the terms, conditions and covenants of this Agreement, the Landlord agrees that the Tenant shall and may peaceably have, hold and enjoy the leased Premises during the Term. 21. BROKERS. Landlord and Tenant represent and warrant to each other that they have had no dealings with any broker or agent in connection with this Agreement and that no third party is due a commission, fee, or any other payment in association with the lease of the Premises to the' Tenant. Each party shall bei responsible toj pay any claims made by anyone  between the parties.  4    for any compensation, commissions, and charges claimed by any broker or agent with whom suchj partymayhave dealt with respect tot this Agreement or thei negotiations thereof. 22. RELATIONSHIP. This Agreement creates a landlord-tenant relationship between the parties. Nothing in this Agreement shall be deemed or construed as creating any other 23. WAIVER. The failure of a party to enforce any right hereunder shall not be deemed a waiver rofsuchi right. No covenant, condition, orj provision ofthis Agreement can bewaived except with the written consent of each party. Any such waiver by the parties in one instance shall not constitute a waiver ofa any subsequent similar condition, circumstance or 24. SEVERABILITY. If any term, covenant, or condition of this Agreement or the application thereoft to any person or circumstances shall to any extent be deemed lawfully invalid or unenforceable, thei remainder oft this Agreement, or the application ofs such term, covenant, or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant, and condition of this Agreement shall be valid and enforced to the fullest extent permitted by law. The Landlord and Tenant shall reform the Agreement to replace any stricken provision with a valid provision that comes as close as possible to thei intent oft the stricken provision. Thej provisions ofthis section shall not prevent the entire. Agreement: from being void should a provision, which is oft the essence ofthe. Agreement, be determined void. 25. CONSTRUCTION. This Agreement is the product of joint efforts oft the parties and no provision shall be interpreted or construed in favor of either party by virtue of authorship 26. MODIFICATION. This Agreement may only be modified by a written amendment 27. INTEGRATION. This Agreement sets forth the entire agreement between the parties with respect to its subject matter and that there are no promises or understandings other than those stated herein. This Agreement supersedes all prior agreements, contracts, proposals, representations, negotiations, letters, or other communications between the parties pertaining to the lease oft the above described property, whether written ororal. 28. RADON. Radon is a naturally occurring radioactive gas that, when it has accumulated in at building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be 29. COUNTERPARIS. This Agreement may be executed in multiple counterparts each of which shall be an original, but which collectively shall form a single agreement. 30. GOVERNINGLAW: VENUE. This. Agreement shall be governed and interpretedunder the laws of the State of Florida. Venue for any action relating to the construction, interpretation, or enforcement of this Agreement shall be in or for the Tenth Judicial  relationship between the parties.  default, unless specifically stated in the written consent.  ofsuch provision.  properly executed by the parties.  obtained from your county health department.  Circuit, Polk County, Florida.  5    31. EFFECTIVEI DATE. The. Effective Date ofthis Agreement shall bet the date that thel later  ofthe two parties executes this. Agreement.  IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly  authorized representatives as oft the Effective Date.  POLKCITY, aFlorida municipality  ATTEST: By:  By:  Joel LaCascia, Mayor  Print Name  Title  Date:  Date:  Approved as to form and legal sufficiency:  City Attorney"  Date  ATTEST:  STACY M. BUTTERFIBLD, Clerk  POLK COUNTY,  ap political subdivision of the State ofl Florida  By:  By:  Deputy Clerk  William D. Beasley, County Manager  Date:  Approved as to form and legal sufficiency: County Attorey'sOffice  Date  6    Exhibit "A"  000030,000020 95.3" 0000695419  090060 09023  090210  11651 Lo001Q  82.09 000120 2  080120  090090  090150 06 07  0077 120020 000100/  LN hy  121060.  089260  085000  121070  089010  AREO OR7, 086020  089240  252632  SITE  120030  0892104  66060  089090 089100,  090  086000  121080  089130 03  086000  089190,  088012  086130  086060  0 30 60  120 Feet  Section 32, Township 26 South, Range 25 East  Alln maps arew worksheets usedf foril illustrativep purposes only, theya arenots surveys. The Polk County Property Appraiser assumes nor responsibility fore errorsi int thei information and does notg guaranteet thec datais isfi freef frome error ori inaccuracy. Thei informationi isp provided" asis". Marsha M. Faux, CFA, ASA Property Appraiser Polk County, Florida June 19, 2015  Parcel ID: 252633-296300.089010 200 Commonwealth, Polk City, Florida  Polk County    City Commission Meeting August 17, 2020  AGENDA ITEM #3:  Resolution 2020-07 - A Resolution of City Commission of Polk City, Florida adopting the 2020 Polk County Multi-Jurisdictional  Local Mitigation Strategy Update.  NFORMATION ONLY X ACTION REQUESTED  ISSUE: Resolution 2020-07 Polk County Local Mitigation Strategy Update  ATTACHMENTS: Resolution 2020-07 ANALYSIS:  A Resolution of the City Commission of the City Commission of Polk City, Florida; approving its portion of the Polk County Local Mitigation Strategy. Adoption of this Plan ensures Polk City's  eligibility to participate in funding opportunities in the years ahead. Please visit tp/Pokcountyms.org to review the updated plan.  STAFF RECOMMENDATION:  Adopt Resolution 2020-07 Polk County Location Mitigation Strategy Update    Florida's Crossroads of Opportunity  Board of County Commissioners  PHONE: 63-238.7035 FAX: 863-296-7179 wwwo polk-county.net  1890 Jim Keene Blvd. Winter Haven, Florida 33880  POLK COUNTY  EMERGENCY MANAGEMENT DIVISION  August 5, 2020 Patricia Jackson City of Polk City 123 Broadway Blvd. SE Polk City, FL33868  Re: Local Mitigation Strategy Update  Dear Mrs. Jackson:  The Polk County Local Mitigation Strategy (LMS) identifies the hazards that may impact Polk County and provides an assessment of the relative risk each poses. The plan also includes a number of proposed projects to minimize vulnerability to these hazards. The Disaster Mitigation Act of 2000 (DMA2K) requires the LMS to be updated every five years in order to maintain eligibility for federal mitigation funds. Please visit  ntp/pokounty/ms.org to review the updated plan.  The DMA2K requires active participation in the development and maintenance of the LMS, along with formal adoption by each local jurisdiction. The Florida Division of Emergency Management has approved the 2020 LMS and the Board of County Commissioners formally adopted the plan on August 4, 2020. Once your jurisdiction has signed an adoption resolution (sample attached), please email a copy to the address If you have any questions, please contact me at 863-298-7033 or jerrkaplan@polk-  below. county.net. Respectfully, Jerrukaplan Jerri Kaplan Planner  Polk County Emergency Management  COMMISSIONERS: George Lindsey I Rick' Wilson, Vice Chairman Bill Braswell, Chairman Martha Santiago John Hall    RESOLUTION 2020-07  A RESOLUTION OF CITY COMMISSION OF POLK CITY, FLORIDA ADOPTING THE 2020 POLK COUNTY MULTI-JURISDICTIONAL LOCAL MITIGATION STRATEGY UPDATE.  WHEREAS, areas of Polk County, including the Polk City, are vulnerable to the human and economic WHEREAS, the City Commission of Polk City realizes the importance of reducing or eliminating those WHEREAS, a Local Mitigation Strategy is a LMS which presents a unified strategy to building a WHEREAS, the Disaster Mitigation Act of 2000 requires each local jurisdiction to have either its own local mitigation strategy or to actively participate in the development and maintenance of multi- WHEREAS, Polk City actively participated in the development and maintenance of the Polk County WHEREAS, Polk City has actively participated in the 2020 update to the Local Mitigation Strategy through the Polk County Local Mitigation Strategy Working Group, which has established a comprehensive, coordinated planning process to eliminate or decrease these vulnerabilties; and WHEREAS, Polk City representatives and staff have identified, justified, and prioritized proposed projects and programs needed to mitigate the vulnerabilities of Polk City to the impacts of future WHEREAS, the Polk County 2020 Multi-Jurisdictional LMS incorporated these proposed projects and programs into the update that has been prepared and issued for consideration and adoption by the WHEREAS, the State of Florida Division of Emergency Management has issued an' "Approval Pending  costs of natural, technological, and societal disasters; and  vulnerabilities for the overall public health, safety, and welfare of the community; and  disaster-resilient community; and  jurisdictional mitigation strategy; and  Local Mitigation Strategy as adopted in 2002,2005, 2010, and 2015; and  disasters; and  jurisdictions of Polk County; and  Adoption" of the Polk County 2020 Multt-Jursdictional Local Mitigation Strategy. NOW, THEREFORE, BE IT RESOLVED, by the City Commission of Polk City:  1. The City Commission of Polk City hereby accepts and adopts its designated portion of the "Polk 2. Agency personnel of Polk City shall pursue available funding opportunities for implementation oft the 3. Agencies and organizations within Polk City will, upon receipt of such funding or other necessary 4. Polk City will continue to participate in the updating and expanding of the LMS in future years.  County 2020 Multi-Jurisdictional LMS". proposals and projects designated therein.  resources, seek to implement proposals contained in the LMS.    5. Polk City will encourage businesses, industries, and community groups operating within Polk County to also participate in updating and expansion of the LMS in the years ahead. 6. Polk City will continue to participate in the furtherance of public involvement opportunities.  INTRODUCED AND PASSED by the City Commission of Polk City, Florida, in regular session,  this_ 17th day of August, 2020.  Joe LaCascia, Mayor  ATTEST:  Patricia R. Jackson, City Manager/Clerk  APPROVED AS TO FORM & LEGALITY  Thomas A. Cloud, Esquire, City Attorney    City Commission Meeting August 17, 2020  AGENDA ITEM #4:  MT. OLIVE ROAD WASTEWATER SYSTEM EVALUATION  INFORMATION ONLY X ACTION REQUESTED  ISSUE:  Mt. Olive Road Wastewater System Evaluation - Wood Environment and Infrastructure Solutions  ATTACHMENTS:  Proposal - Project Information  ANALYSIS:  Duet toi the growth along Mt. Olive Road that is int the Polk City's Utility Service Area, Polk City requested a proposal from Wood Environment & Infrastructure Solutions, Inc. to evaluate the Mt. Olive Road Wastewater System to review the existing conditions as well as future demands on the System. The proposed residential subdivision, known as "The Landings at Mt. Olive" is currently in the Development Review Process and is planned to add approximately 382 homes to Polk City. Two onsite lift stations are anticipated to be constructed as part of "The Landings at Mt. Olive" Development, and are anticipated to discharge to the west through the new sanitary force main along Mt. Olive Road before discharging into the existing lift station at Mount Olive Shores South (Lift Station #10). Please refer to the attached proposal for complete details. The cost of this evaluation is $13,745.  STAFF RECOMMENDATION:  Move to approve the proposal from Wood Environmental and Infrastructure Solutions Inc. for the Mt.  Olive Wastewater System Evaluation in the amount of $13,745.    wood.  Wood Environment & Infrastructure Solutions, Inc.  2000 E. Edgewood Drive, Suite 215  Lakeland, FL 33803 T:863-667-2345 www.woodpic.com  August 4, 2020  Ms. Patricia R. Jackson City Manager City of Polk City 123 Broadway Blvd SW Polk City, FL 33868  Via Email: Datriciajackson@mypolkctty/org Re: Proposal for Professional Engineering Services Mt. Olive Road Wastewater System Evaluation Wood Project No. 600370.6  Ms. Jackson:  Wood Environment & Infrastructure Solutions, Inc. (Wood), is pleased to submit this proposal to the City of Polk City (City) for an evaluation of existing wastewater infrastructure in the vicinity of Mt. Olive Road. This proposal provides an overview of the services to be provided by' Wood.  GENERAL PROJECT INFORMATION  The City is currently experiencing growth in the southwestern portion of the City's utility service area. The proposed residential subdivision, known as The Landings at Mt. Olive, is currently in the development review process and is planned to add approximately 382 homes to Polk City. The Landings at Mt. Olive development is located on the north side of Mt. Olive Road between Golden Gate Boulevard and Lagustrum Lane. Two onsite private lift stations are anticipated to be constructed as part of The Landings at Mt. Olive development. The new lift stations are anticipated to discharge to the west through a new sanitary force main along Mt. Olive Road before discharging into the existing lift station at Mount Olive Shores South (Lift Station #10).  Wood' is at trading name for. John Wood Group PLC andi its subsidiaries    Lift Station #10 also accepts wastewater flows from the Fountain Park lift station (Lift Station #6). The Golden Gate lift station (Lift Station #11) is also located within the vicinity of Mt. Olive Road. Based on inventory maps provided by the City, the discharge point of Lift Station #11 is not clear, but it is assumed to contribute flows to Lift Station #10. Lift Station #10 discharges to the Voyles Loop lift station (Lift Station #7) which then discharges to the Cardinal Hill WWTP, The purpose of the Mt. Olive Road Wastewater System Evaluation is to review the existing conditions as well as future demands on the system. The results oft the evaluation will be used to provide direction to the developer of The Landings at Mt. Olive subdivision regarding the wastewater system design requirements, including connection location and design pressure.  SCOPE OF SERVICES Task 100- - Data Collection  Wood will conduct a project kick-off meeting with City staff to discuss the project objectives and requested information. Information to be provided by the City is anticipated to include the  following for Lift Stations #6, #7, #10, and #11:  As-built survey data; Design calculations; Maintenance records; and Forcemain inventory maps.  Pump data manufacturer, model, impeller diameter, etc.);  Wood will perform a desktop review of the information provided by the City. Following the desktop review, Wood will perform a site visit with City staff to collect field information.  Task 200 - Engineering Evaluation  Wood will perform an engineering evaluation of the wastewater collection system based on the data collected in Task 100 and other readily available data. The engineering evaluation willi involve the calculation of estimated design flows to Lift Station #10 considering the development potential of The Landings at Mt. Olive and other future wastewater connections. The wet well volume and pump capacity of Lift Station #7 and #10 will be evaluated. In addition, the forcemain The deliverable for this task willl be an Engineering Report that addresses thei findings of the study and provides recommendations for The Landings at Mt. Olive wastewater connection configuration and recommended improvements to the existing wastewater system, if applicable.  capacity on Mt. Olive Road will be evaluated.  Wood will meet with the City to discuss the Engineering Report.  Page2    BUDGET ESTIMATE  Wood will provide the services described in Tasks 100 and 200 for a lump sum fee of $13,745.  PROJECT UNDERSTANDING  Wood's services provided for this project are limited to those outlined in the scope of services. The following services can be provided by Wood, if authorized, but are not included in this  proposal:  Boundary and Topographic Survey; Subsurface Utility Engineering; Electrical Systems Evaluation; Engineering Design and Permitting; Cost Estimating; and  Meetings not specifically described in the Scope of Services.  This proposal is valid for a period of 30 days. The terms and conditions of the Continuing Engineer Services Agreement between the City of Polk City and Wood Environment & Infrastructure, Inc. (Wood), dated February 16, 2015 are incorporated by reference, We appreciate this opportunity to work with the City of Polk City. If you have any questions, please do not hesitate to contact us  at 863-667-2345. Sincerely,  Wood Environment & Infrastructure Solutions, Inc.  Mu. Mark. J. Frederick, P.E., CFM Project Manager MJF/MDP/tym  PMiLADPAA Michael D. Phelps, P.E. Office Manager  Page 3    Special City Commission Meeting  August 17, 2020  AGENDA ITEM #5:  PRESENTATION OF FINANCIAL STATEMENT FOR YEAR ENDING  SEPTEMBER 30, 2019  INFORMATION ONLY X ACTION REQUESTED  ISSUE:  Presentation of Financial Statement for Year Ending September 30, 2019  ATTACHMENTS:  Financial Statement for Year Ending September 30, 2019  ANALYSIS:  Mike Brynjulfson will present the Financial Statement for the year ending September 30, 2019.  STAFF RECOMMENDATION:  Move to accept the Financial Statement for the year ending September 30, 2019.    Polk City, Florida  Report to the Mayor and City Commission required by AICPAa auditing standards section  AU-C Section 260 - The Auditor's Communication with Those Charged with Governance    CERTIFIED F  BRYNJULFSON:  PUBLIC ACCOUNTANTS)  June 23, 2020 Polk City, Florida  Honorable Mayor and Members of the City Commission  We have audited thef financial statements oft the governmental activities, thel business-type: activities ande each major fund of Polk City, Florida (the "City") as of and for the year ended September 30, 2019 and have issued our report thereon dated. June 23, 2020. Wel have previously communicatedi to you information: about our responsibilities under auditing standards generally acceptedi in the United States of America and Government, Auditing Standards, as well as certain information related to the planned scope and timing of our audit in our engagement letter dated October 14, 2019. Professional standards require that we communicate to youi the following information related to our audit.  Significant Audit Findings Accounting policies  Qualitative Aspects of Accounting Practices  Management is responsible for the selection and use of appropriate accounting policies. The significant accounting  policies used the City are described in note 1 tot thet financial statements. The following accounting pronouncement was adopted during 2019:  Governmental Accounting Standards Board (GASB) Statement No. 88 - Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. This statement improves thei information that is disclosed in the notes to financial statements related to debt including direct borrowings and direct placements and also clarifies which liabilities governments should include when disclosing information  related to debt.  The application of existing policies was not changed during the year ended September 30, 2019. We noted no transactions enteredi into byt the City during the year for which there is al lack of authoritative guidance or consensus. All significant transactions have been recognized in thet financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because oft their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most Management's estimate of the allowance for doubtful accounts is based on historical water and sewer revenues, historical loss levels and an analysis of the collectability if individual accounts. Depreciation is recognized using the straight-line method overt thee estimated usefull lives of the capital assets. The unbilled utility revenue calculation is based on the number of days from the last meter read date in the year through year-end divided by thirty and then multiplied by the subsequent month billing. Actuarial assumptions are used to calculate the Florida Retirement System defined benefit pension plans' net pension liability and pension related deferredi inflows and outflows of resources. The calculation of these pension elements directly affects the City's proportionate share of the net pension liability; pension related  Accounting estimates  sensitive estimates affecting the financial statements were:  deferred inflows and outflows of resources and the related effects on operations.  307 Pontotoc Plaza - Auburndale, Florida 33823 . Phone 800.368.3959m Fax 863.583.0872  Brynjulfson CPA,P.A.  wwmylondacpas.com  1    Polk City, Florida Page 2...  Accounting estimates (concluded)  We evaluated the key factors and assumptions used to develop the above estimates in determining that they are reasonable inr relation to thet financial statements taken as a whole. The disclosures int thet financial We encountered no significant difficulties in dealing with management in performing and completing our Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements other than those that affect prior periods or those for which a corrective entryi is nota appropriate. The effect of theu uncorrected misstatements understate the City- wide change ini net position by $2,000 and management has determined thisi is immaterial, both individually and in the aggregate, to the financial statements as a whole. Material corrected misstatements that were brought to the attention of management as a result of our audit procedures are summarized below.  statements are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit Corrected and Uncorrected Misstatements  audit  Type Account No  Name  Debit 11,705.00 4,865.00 4,452.00 14,003.76  Credit 35,025.76  Adjusting 01-202-200 Accounts Payable Year-end  01-524-310 Professional Services Bldg Zoning 01-524-310 Professional Services Bldg Zoning 01-524-310 Professional Services Bldg Zoning 01-534-341 Refuse Disposal- Residential Refuse/S  Torecordy year end payables identified as parto ofa audit testing.  Adjusting 05-164-100 Utility Plani in Service  60,164.33 1,128.08  05-167-900 Acc Depreciation- - Equipment 05-169-900 CIP- Construction Costs 05-533.602 Depreciation Expense. Water  1,128.08 60,164.33  Top place CIP project (Grimes Road)i into service as of12/31/2018 and record depreciation expense.  Adjusting 01-101-100 Cash- Checking  19,385.00 19,385.00  01-590-450 ND-Liability! Insurance 05-101-100 Cash- Checking 05-590-450 Liability Insurance  19,385.00 19,385.00  To move insurance expense incorrectlyalocated 100% to the general fund tot the enterprise fund.  Account Number Legend XX-YYY-ZZZ ZZZ: Object Code  XX: Fund (01 - general fund, 05 = enterprise fund) YYY: Revenue Type or Expenditure Department    Polk City, Florida Page 3...  Disagreements with Management  For purposes oft this letter, a disagreement with management is at financial accounting, reporting, or auditing matter, whether or not resolved to our satistaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our  audit.  Management Representations representation letter dated June 23, 2020.  We have requested certain representations from management that are included in the management  Management Consultations with Other Independent. Accountants  Ins some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. Ifa consultation involves application ofa an accounting principle tot the City'sf financial statements or a determination oft thet type ofa auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. It is our understanding that management has employed the services of another accountant (George Cotellis, CPA) to assist with the year-end closeout, financial statement preparation and other accounting matters. To our knowledge, all We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management's responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient  consultations with outside accountants were properly coordinated. Significant issues discussed with management, prior to engagement  not a condition to our engagement. Other Matters  evidence, we did note express an opinion or provide any assurance on the RSI. Use of audit report and audited financial statements in other documents  Our auditors' opinion, the audited financial statements, and the notes to financial statements should only be used in their entirety. Inclusion of the audited financial statements in a document you prepare, such as an annual report, should be done only with our prior approval and review of the document.    Polk City, Florida Page 4...  Thisi information is intended solelyf fort the use of the City Commission and management of Polk City, Florida andi is noti intended to be and should not be used by anyone other than these specified parties.  Very truly yours,  Bryjulo CPA,PA. Brynjulfson CPA, P.A. Auburndale, Florida June 23, 2020    ACE &  E  19  25  CITY    POLK CITY, FLORIDA FINANICAL STATEMENTS SEPTEMBER 30, 2019    Table of Contents FINANCIAL SECTION Independent Auditor's Report. information). Basic. Financial Statements: Government-wide Statements Statement of Net Position. Statement of Activities. Governmental Funds:.  Management's Discussion and' Analysis (unaudited required supplementary  12 13 14 15 16 .17 18 19: 20 21 48 49 50 51  Balance Sheet - Governmental Funds. Stâtement of Net Position. Governmental Funds.  Reconciliation of the, Balance. Sheet of the Governmental Funds to the: State of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditurès and Changes in Fund Balances of Governmental Funds to the Statement of Activities..  Proprietary, Funds:  Statement of Net Position - Proprietary Funds,  Statement of Revenues, Expenses and Changes in Fund Net Position =  Proprietary Funds  Statement of Cash Flows- Proprietary Funds. Notes to Financial Statements REQUIRED SUPPLEMENTARY INFORMATION  Budgetary Comparison Schedule - General Fund.  Schedule' of the City's Proportionate, Share oft the. Net Pension Liability, and Schedule of City. Contributions = Florida Retirement, System Pension. Schedule of the City's Proportionate Share: of the Net Pension Liability and Schedule of City Contributions - Health Insurance Subsidy. Pension: Notes to the Schedules of the City's Proportionate Share' of the Net Pension. Liability and Schedule of City Contributions - Florida Retiremént System Pension Plan and Héalth Insurance Subsidy Perision. Plan.....  Plan... Plan..    GOVERNMENT AUDITING SECTION.  51 52 53 55  Schedule of Expenditures of State Financial Assistance.  Independent Auditor's Report on Compliance for Each Major State Project and on Internal Control over Compliance Required by Chapter 10.550, Schedule of Findings and Questioned Costs Relating to State Financial 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 Independent Accountant's Report on Compliance with Section 218.415, Florida  Rules oft the Auditor General..  Assistsance.  Standards Statutes.. Management Letter  57 59 60  OTHER INFORMATION  Managements Affidavit of Compliance with Section 163.31801, Florida  Statutes..  62 63  Letter of Management's Response.    FINANCIAL SECTION    BRYNULFSON ACERTIFIED - PUBLIC ACCOUNTANTS>  INDEPENDENT AUDITOR'S REPORT  Honorable Mayor and Members of the City Commission  Polk City, Florida  Report on the Financial Statements  Wel have audited the accompanying financial statements of the governmental activities, the business-type activities and each major fund of Polk City, Florida (the "City") as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed  in thet table of contents.  Management's Responsibility for the Financial Statements  Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant. to the preparation and fair presentation of financial  statements that are free from material misstatement, whether due to fraud or error.  Auditor's Responsibility  Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance An audit involves performing procedures to obtain audit evidence about the amounts and disclosures ini thet financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due tot fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity'si internal control. Accordingly, we exprèss no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the We believe that the audit evidence we have obtained is sufficient and appropriate to provide al basis for our audit  about whether the financial statements are free from material misstatement.  financial statements. opinions. Opinions  Inc 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 and each major fund of Polk City, Florida, as of September 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United  States of America.  307 Pontotoc Plaza - Auburndale, Florida 33823 - Phone 800.368.3959 - Fax 863.583.0872  Brynjulfson CPA, P.A.  wwwmyloracpas.com  1    Honorable: Mayor and Members of the City Commission  Polk City; Florida. Other Matters  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. provided. in the table of contents, be. presented to supplement the basic' financial statements. Such information, although not a part oft the basic financial statements, is required by' the Governmental. Accounting Standards Board, who considers itto be an essential part of financial reporting for placing: the basic financial statements in an appropriate operational, éçonomic, or historical context. We have applied certain, limited procedures to the required supplementary, information, in accordàrce with auditing standards: generally accepted in the United. States of America, which consisted ofi inquiries of management about the: methods of. preparing the information and comparing the information for consistency with, managements responses to. our inquiries, the basic financial statements, and other knowledge we. obtained during our audit oft 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 èvidence to. express an opinion or, provide any. assurance. Our audit was conducted for the. purpose of forming opinions on the financial statements that collectively. comprise the City's basic. financial statements. The schedulé, of expenditures of state financial assistance is presented for purposes of additional analysis as required by. Section 215.97,, Florida Statutes and Chapter 10.550, Rulès of the Auditor General, and is not a required part of the basic. financial statements. The other information section is also presented for purposès of additional analysis as. réquired by Section 163.31801, Florida Statutes and. is not a. required part of the: basic financial statements. The otheri information section has not beèn subjected to the auditing proçedures applied inj the audit of thé basic financial statements and, açcordingly, we do note express. ah opinion or The. schedule of expenditures of state financial assistance is the responsibility of management and was, derived: from and relate directly. to the underlying: accounting and othér reçords used. to prepare the basic financial statements: Such information has bèen subjected to the. auditing proçedures: 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 schedule of expenditures of state. financial assistance is fairly, stated in all material" respects in relation to the. basic financial statements as a whole.  Otherl Information  provide. any assurance: on: this section.  Other Reporting Réquired by. Government Auditing Standards  In'a accordance with Government Auditing Standards, we. have also' issued. our report, dated June 23, 2020, on our consideration of the. Polk City, Florida's internal control over financial reporting and on our. tests of its compliance with certain provisions of laws, regulations, contracts; and grant agreeménts! and other matters. The purpose oft that report, is to describe the scope of our testing of internal control, over financial reporting: and compliance and the results of that testing, and not to provide. an opinion on. internal control over financial, reporting or on compliance. That. report is an integral part: of an. audit performed in accordance. with- Goverment Auditing Standards in  considering the Polk. City, Florida's internal control over financial reporting and compliance  ByjuBoy CPA,PA: Brynjulfson' CPA, P.A. Auburndale, Florida June 23, 2020  2    Polk City, Florida September 30, 2019  Management's Discussion and Analysis  As management of Polk City, Florida (the "City"), we offer readers of the City's financial statements this narrative overview and analysis of the City's financial activities for the fiscal year ended September 30, 2019. We encourage readers to consider the information presented here  inc conjunction with the City's financial statements beginning on page 13.  Financial Highlights  The assets and deferred outflows of resources exceed the liabilities and deferred inflows For the year ended September 30, 2019, the governmental activities increase the net position oft the City by $407,377 and the business-type activities increased the net position oft the City by $989,961 for an overall increase in net position of $1,397,338. The City's unrestricted cash and cash equivalents totaled $4,220,254, an increase of As of the close of the current fiscal year, the City's general fund (governmental fund level) reported ending fund balance of $3,251,686, an increase of $578,515 in comparison with the prior year. As of September 30, 2019, the City's unassigned and assigned fund balance totaled $2,244,258 and is available for spending at the government's discretion.  ofr resources by $3,839,120 as of September 30, 2019.  $670,650 over the prior year.  Overview of the Financial Statements  This managements discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic finançial statements are comprised of three components: government-wide financial statements; fund financial statements, and notes to the financial statements. This report also contains other supplementary information in addition to the  basic financial statements.  Government-Wide Financial Statements  The government-wide financial. statements are designed to provide readers with al broad overview The Statement of Net Position presents information on all the City's assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the residual amount reported as, net position. The focus of the Statement of Net Position (the 'unrestricted net position") is designed tot be similar to bottom line results for the City and its governmenta. and business-type activities. The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year, focusing on both the gross and net cost of various activities, both governmental and business-type, that are supported by the government's general tax and  oft the City's finances, in a manner similar to a private sector business.  other revenues.  3    Polk City, Florida September 30, 2019  Management's Discussion and Analysis  Both of the government-wide financial statements distinguish functions of, the City 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 include: general government, library, law enforçement, building. and. zoning, parks and recreation, and  stormwater utility. The. business-ype-achivlies include water and sewer:  Fund Financial Statements  The City, like othèr state and local governments, usès fund accounting to ensure and demonstrate compliançe with finance-related legal requirements. All the; funds of the City can be divided into two categories: governmental funds and proprietary funds. Traditional users of governmental financial statements will find the fund financial statements presentation more familiar.. Governmental Funds - Governmental funds are. used. to account for essentially the same functions reported. as. governmental activities in the. government-wide financial statement. However, unlike the government-wide financial, statements; governmental fund, financial statements focus On near-term: inflows and outflows of spendable resources, as wel! as.on: balances of spendable resources available att the end of the fiscal year. The basic Governmental The. City maintains one governmental fund : the Gèneral: Fund. Information, is prèsented separately for. éach fund in the governmental fund Balance Sheet and the. governmental fund Statement of Revenué; Expenditures and Change in Fund Balançes for the General Fund. Proprietary. Funds The City maintains only one of the two proprietary fund" types. Entérprise funds àre used to: report the same functions presented as business-type activities in the government-wide financial statements, only in' more detail. The City uses enterprise. funds to account for its water: and wastewater activities: The basic proprietary, fund financial statements  Funds financial statements can. be found byr referencing, the table, of contents:  can be found. by referençing the. table of contents. Notes to the Financial: Statements referencing the table of contents. Other Information  The notes provide additional information that is essential to a full understanding of the. data. provided: in the government-wide and fund financial stàtéments. They can be fourid. by"  In-addition. to the basic. financial statements and accompanying. notes, this report also. presents reguired supplementary, information consisting of the City's budgetary: comparison statèment for the general fund and. information concerning the City's proportionate share of the net pension liability, and contributions to the: Florida retirement system pension. and: health insurancé subsidy.  pension plans which çan be found by referencing the: table of contents.  4    Polk City, Florida September 30, 2019  Management's Discussion and Analysis  Government-Wide Financial Analysis  The following table reflects a summary of Net Position compared to prior year. For more. detailed  information, see the Statement of Net Position on page 13.  Statement of Net Position (Summary) as of September 30, 2019  Governmental Activities 2018  Business-type Activities Total Primary Government  2018  2019  2018  2019  Assets Current and other assets Capital assets Totala assets Deferred Outflow of Resources Liabilities Long-term liabilities outstanding Other liabilities Total liabilities Deferred Inflow of Resources Net Position Net Investedi in capital assets Restricted Unrestricted Total net position  2,893,597 $3,344,110 $3,809,992 $4,158,053 $6,703,589 $ 7,502,163 3,334,714 3,219,316 11,725,013 13,481,193 15,059,727 16,700,509 6,228,311 6,563,426 15,535,005 17,639,246 21,763,316 24,202,672  284,699  373,126  956,717  914,616 1,241,416  1,287,742 14,490,322 776,772  1,916,519 2,061,565 11,643,234 12,428,757 13,559,753  220,426  92,424  396,935  684,348  617,361  2,136,945 2,153,989 12,040,169 13,113,105 14,177,114 15,267,094  52,851 845,696  51,972  15,307  14,550 1,868,676 3,136,532 1,501,379 2,397,418  68,158  66,522 3,808,871 2,508,807 3,839,120  1,981,274 1,940,195 1,155,258  1,007,428 1,551,722.  1,496,244 1,782,968 1,729,266 2,056,152 3,225,510 $4,323,214 $4,730,591 $4,436,246 $5,426,207 $8,759,460 $10,156,798  Thirty-eight percent of the City's net position reflect its investment in capital assets (land, buildings, improvements, infrastructure, vehicles, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since Twenty-seven percent of the City's net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position is normally available to meet the City's ongoing obligations to citizens and creditors.  the capital assets themselves cannot be used to liquidate these liabilities.  5    Polk City, Florida September 30, 2019  Management's Discussion and Analysis  The following table reflects the condensed Statement of Activities fort the current and previous year.  Statement of Activities (Summary) For the year endèd Séptember30, Governmental Activities 2018 2019. 97,076. 137;127 386,352 166,097 603,370: 782,473: 471,916 513,227 183,090: 197,687 146,128 154,360' 33,142 16,159 628,735 783,194 124;288. 151,527 98,130 127,294 238,032 293,762 44,230 123;131 118,802 220,816. 240,338 340,657 361,364 87,289 54,733. 26,145 3,803 56,804 45,490  Business-type, Activities' Total Primary Govèrnmênt  2018  2019  2018 97,076. 603,370- 471,916 183,090 146,128: 33,933 628,735 124,288 98,130. 238,032 123,131 220,816. 340,657 87,289 26,145 56,804.  2019. 137,127 591,620 782,473 513,227 197,687 154,360 22,677 783,194 151,527 127;294 293,762 44,230 118,802' 240,338 361,364 54,733 3,803: 45,490 1,828,564  Revenues Program Rèvenues:, Charges for services Operating grants and contributions Capital grants andi contributions General revenues: Property! taxes Franchise/Public Ser." Tax, Staté shared revenues Fuel taxes.l leviedi fort transporlation Other Total revenues Expenses General goverriment Library, Lawe enforcement Building and: zoning. Code enforcement Publicy works administratin. Sanitation. Streets Paiks and. recreation Stormwater Interest onl long-term debt Public utilitiés Totale expenses Increase (decrease) iny net position. before transfers Transfers Increase (decrease) ini net position Netp position: -October1 1 Net position- September 30  841,301 $. 639,784 $ 2,272,594 $. 2,411,484 $. 3,113,895 $ 3,051,268  838,847  425,523 1,225,199:,  791  6,518  2,762,375, 2,606,914 3,112,232. 2,843,525 5,874,607 5,450,439:  '2,107,627 1,828,564 2,107,627  1,944,027 2,224,537 2,107,627. 1,828,564 4,051,654 4,053,101  818,348. 183,591: 1,001,939  382,377" 1,004,605. 1,014,961: 1,822,953. 1,397,338  25,000 407,377:  (183,591). 821,014:  (25,000)  989,961 1,822,953: 1,397,338:  3,321,275 4,323,214 3,615,232 4,436,246. 6,936,507 8,759,460 $.4;323,214: $4,730,591 $ 4,436,246 $:5,426,207 $ 8,759,460 $:10,156,798  6    Polk City, Florida September 30, 2019  Management's Discussion and Analysis  Governmental Activities - Governmental activities increased. the City's net position by $407,377 after a net transfer of $25,000 from the business-type activities. In the prior year, net position increased by $1,001,939 as a result of operations which included a $183,591 transfer from the business-type activities.. Total revenue for the year ended September 30, 2019 decreased by  $165,253 or 5.6% and expenses increased by $280,510 or 14.4%. Significant items experienced in FY 2019 - Governmental Activities:  Purchased a 201 ft. lawn equipment trailer (eplacement)-Streets: and Roads Department Purchased a Toro 25 HP Kohler mower. - Streets and Roads Department Updated Engineer Plans for Donald Bronson Center Parking Lot  (split with water and sewer)  Installed new web-based access panels for City Hall outside entrances and offices Installed new programable thermostats in all city facilities (general fund and enterprise  w/software fund)  Drain-field repair and Public Works/Utilities Facility Purchase Office Furniture for Finance Department, Utility Billing  Business-type Activities - Business-type activities increased the City's net position by $989,961 compared to an increase of $821,014 in the prior year. There was a net transfer of $25,000 to the governmental activities in the current year and $183,591 in the prior year. Total revenue for the year ended September 30, 2019 decreased by $268,707 or 8.6% and expenses decreased  by $279,063 or 13.2%.  Significant items experienced in FY 2019-Business-ype Activities  Grimes Road Water Line Extension - 6" line Purchase Water Pump Adapter - Water Department Purchased Harmony Mobile Reading System Electric for Sludge Box - Cardinal Hill WWTF Concrete Slab for Sludge Box - Cardinal Hill WWTF Sludge Box System at Cardinal Hill WWTF  Purchase of Two 2019 Ford F-250's with box - Water Department and Sewer Department  100/3 Breaker and size 2 starter with auxiliary controls - Voyles Loop Lift Station  Relocation of S.R. 33 Sprayfield - DEP Project - Engineering and Construction  7    Polk City, Florida September 30, 2019:  Management's Discussion and: Analysis  Fund Level Financial Analysis  Governmental Funds. - As of September 30, 2019, the City's governmental fund reported combined ending fund balances of $3,251,686 This is an, increase of $578,515 over the prior year ending fund balances of $2,673,171. The: main: causes oft the incrèase are as. follows:  Total revenue decreased by $155,460 or 5.6% mainly: due. to decrease, in licenses and permits, and impact fees., Licenses and permits decreased by $223,086, and impact fees Total expenditures decreased. by $1,526,434 or 42.6%: mainly. due to decreased debt service. expenditures, Debt service expenditures decreased by $1,360,063 over, the prior. fiscal year due toi the refinancing ofthe Series 2007 Capital Improvement Revenue Bonds. Proprietary Funds - These services combined. to generate' operating inçomé of $985,565. Compare that to. the prior year. operating. income of $789;862, Due to continued. growth in the: General Fund Budgetary Highlights-7 The City adopts an annual appropriated budgeteach: year ins September. Budgetary comparison statements. have been provided to demonstrate compliance with, the: budget which can be found by referencing the table. of contents: Budget comparison reporting is included for the General Fund, Actual- revenue was, less than: the final budgeted amounts by $47,562, and actual expenditures were. less than final budgeted appropriations by Overall the Fiscal Year 2019 Budget had a positive impact on Polk City's financial piçture for the  decreased by $208,845 over the prior fiscal year.  int the prior year.  water and sewer operations.  $312,815.  General Fund and' Enterprise Fuind.  8    Polk City, Florida September 30, 2019  Management's Discussion and Analysis  Capital Asset And Debt Administration  Capital Assets - The investment in capital assets includes land, buildings, improvements, infrastructure, vehicles, and equipment. The City elected to record and depreciate its  infrastructure, rather than use the optional "modified approach".  The following table presents a comparison of the capital assets for the current and previous year.  Capital Assets Activity as of September 30, 2019  Governmental Activities 2018  Business-type Activities Total Primary Government  2018 161,736  2019 2,080,266 4,811,002.  2018 161,736 3,305,014 3,418,161 503,467 942,193 205,009  2019 2,080,266 5,223,544 3,418,161 503,467 1,028,993 205,009  Assets not depreciated Land Construction inp progress Total Depreciated Assets Buildings andi mprovements Recreational facilities Vehicles and equipment Infrastructure Utility plants Subtotal Accumulated depreciation Total  412,542 $ 412,542 $2,730,736 $ 2,730,736 $ 3,143,278 $ 3,143,278  412,542 3,418,161 3,418,161 503,467 542,145 205,009  412,542 2,892,472  503,467 558,227 205,009  400,048  470,766  12,268,965 12,366,533 12,268,965 12,366,533  4,668,782 4,684,864 12,669,013  12,837,299 17,337,795 17,522,163  (1,746,610) (1,878,090) (3,836,472) (4,167,108) (5,583,082) (6,045,198) $2,922,172 $2,806,774 $ 8,832,541 $ 8,670,191 $11,754,713 $ 11,476,965  The City's investment in capital assets for its governmental and business-type activities as of September 30, 2019, amounts to $16,700,509 (net of accumulated depreciation) compared to Additional information on the City's capital assets can be found in Note 5 of the Notes to the  $15,059,727 last year. That is an increase of $1,640,782 from the prior year.  Financial Statements in this report.  9    Polk: City, Floridal September: 30, 2019  Management's Discussion and Analysis  Long-term debt- Thet following table presents à comparison ofr revenue bonds and-notes payable  for the current and previous year.  Revenue. Notes' and Notes Payable as of September 30,  Governmental: Activitiès 2018. 1,353,441  Business-type Activities 2,408,728  Total Primary Government. 2018 3,762,169  2019 : 2018 1,279,121  2019 3,424,801  :: 2019 4,703,922  Revenue notes Notés payable Total  9,075,609 $: 8,787,903 $ 9,075,609 $ 8,787,903  $1,353,441. $ 1,279,121 $: 11,484,337 $ 12,212,704 12,837,778 $.13,491,825  The Governmental Activities had total debt outstanding of $1,279,121 which compares' to. $1,353,441 in the prior year. This consists, of the Citizens Bank. and Trust Installment Note for the refunding of the Series 20073 Capital. Improvement Reyenué Bonds for the construction: oft the The Business-type Activities had total debt outstanding of $12,212,704. which compares to $11,484,337, in the prior year. This consists of the Series 2017 Water/Sewer System Refunding Revenue. Bonds, the installment notes to the Florida Department of Environmental Protection,, Additional information on. the City's long-term debt can: be: found in. Note 63 of. the. Notes to thé:  Polk City Government Center.  and the Tax-Exempt Lease Purchase Agreèment. Financial Statements in this report..  Economic Factors and Next Year's Budget And. Rates  The: following items were considèred. in developing the 2019-2020 budget:  For the Fiscal, Year 2019-2020. Budget, the millage: rate was; reduced: to 6.0000 mills; thé  previous. millage was 7:25 mills  Thère will be an increase. in Ad' Valorem; Revenue due to current growth  Due to the. current growth; it is anticipated therewill be an. incréase in Utility Taxes, Franchise Fees, Communication Services Taxes; Half Cent Sales Tax, Revenue Sharing, Itisa anticipated to apply for Community Development Block: Grant Funds from Florida Department of Economic Opportunity, which' is more çompetitive ($650,000): Itisa anticipated to have an increase in Charges for Services = water and wastewater Iti is anticipated the carpet will be replaced in the Donald Bronson Community Center and parts oft the Polk City Government Center. The foyer in the Polk City Governiment Centèr The. inmate van will be réplaçed. with the purchase of an F-250. Truck- crew cab  and Solid Waste.  will also' be replaced with: tile  10.    Polk City, Florida September 30, 2019  Management's Discussion and Analysis  Economic Factors and Next Year's Budget And Rates (concluded)  The following items were considered in developing the 2019-2020 budget (concluded):  Purchase of software for the Building Department and the Code Enforcement Department Paving of Hydrangea Avenue, Library Parking lot and Donald Bronson Community Center  Purchase of video system. for the Public Works /Utilities Facility  Parking lot  Purchase of F-250 P/U Truck = standard cab to replace the 2002 Truck Anticipated repairs at the Fishing Pier, Freedom Park and 2nd Street Pocket Park Purchase of F-250 with box for Utilities Department to replace 2003 Purchase of Deluxe Trailer Jetter for Utilities Department (çan also be used with Purchase of Mini Excavator (used) to be used for Utilities and Public Works Replacement of two hydromatic water tanks at Jacob Road Water Plant ARV replacement at Commonwealth, Mt. Olive WTP and the Commonwealth WTP Cardinal Hill WWTF - Valve replacement, upgrade C12 contact chamber buffers, replace  stormwater)  splitter box  Surge Protectors for by-pass at lift stations Completion of Relocation of S.R. 33 Spray-field  Request for Information  This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of Polk City's finances and to demonstrate the City's accountability for the money it receives. If you have any questions about this report or need additional financial information, please contact the City Manager, Polk City, 123 Broadway  Boulevard SE, Polk City, FL 33868 or call (863) )984-1375.  11    POLK CITY, FLORIDA: AS OF SEPTEMBER: 30, 2019  GOVERNMENT-WIDE STATEMENT OF NETI POSITION  Primary Government Activities  Governmental, Business-type  Activities 2,216,225 43,677 45,928. 30,852 1,007,428 412,542 2,806,774 6,563,426 373,126 373,126 74,474 $ 14,162 103 : 3,685 76,922 1,984,643 2,153,989 51,972. 51,972 1,940,195 112,005 257;361. 141,088- 96,586 289,164 111,224 1,782,968  Total  ASSETS  Cash and cash equivalents Receivables, current: Customer accounts,: net Intergovémmental Franchise and public service taxes Prepaid expenses Restricted" assets: Cash ard çash equivalents Capital àssêts: Non-depreciable Depreciable; net TOTAL ASSETS Pénsions.  2,004,029: $ 4,220,254 200,230 37,364 1,916,430 4,811,002 8,670,191 17,639,246. 104,459 810,157 914,616 13,634. $. 5,932. 53,780 2,397" 300,231. 308,374 399;250 12,029,507. 13,113,105 14,550 14,550. 1,868,676  243,907 45,928 30,852 37,364 2,923,858 5,223,544 11,476,965 24,202,672 477,585 810;157. 1,287,742 88,108 20,094. 53,780. 2,500 300,231 312,059 476,172 14,014,150. .15,267,094. 66,522 66,522 3,808,871 112,005 257,361 141,088 96,586 289,164. 111,224 348,156 1,069,803 83,420 3,839,120.  DEFERRED OUTFLOWS OF RESOURCES Deferred charge on bond refunding RESOURÇES LIABILITIES Accounts payable Accrued payroll Accrued interest payable Due to other governments Construction payable. Customer deposits Long-term liabilities: Due within one year. Due: in more than one year TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES  TOTAL DEFERRED OUTFLOWS OF  Pensions RESOUCES NETI POSITION Net investment in capital assets Restricted for: Transportation infrastructure General government façilities Law enforcement Firè /rescue Parks' and recréation capital improvements Building code enforcement Water, system improvements Waste water system improvements Debt service Unrestricted TOTAL NETI POSITION.  TOTAL DEFERRED INFLOWS' OF  348,156, 1,069,803. 83,420 2,056;152  $4 4,730,591 $ 5,426,207. $. 10,156,798.  See Accompanying Notès to Financial Statements  12    6    POLK CITY,FLORIDA BALANCE SHEET-C GOVERNMENTAL FUNDS AS OF SEPTEMBER 30, 2019  General Fund 2,216,225 43,677 45,928 30,852 1,007,428 $ 3,344;110  ASSETS Cash and cash equivalents Receivables, net: Customer accounts, net. Intergovernmental Franchise and. public service taxes, Restricted assets:. Cash and cash equivalents TOTAL ASSETS LIABILITES AND FUND BALANCE Accounts payable Accrued payrol! Due to other governments Customer deposits TOTAL, LIABILITIES FUND BALANCE: Restricted for: Highways/streets General government facilities Law enforcement Fire/ /rescue Parks and' recreation Building code enforcement Assigned to: Emergency reserve, Unassigned: TOTAL FUND. BALANCE  74,474 14,162 103 3,685. 92,424 112,005 257,361 141,088 96,586 289,164 111,224 240,689: 2,003,569 3,251,686 3,344,110  TOTAL LIABILITIES AND FUND. BALANÇE  See Accompanying Notes to Financial Statements.  14    POLK CITY, FLORIDA TO THE STATEMENT OF NET POSITION AS OF SEPTEMBER 30, 2019  RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS  FUND BALANCES-TOTAL GOVERNMENTAL FUNDS  3,251,686  Amounts reported for governmental activities in the statement of net position Capital assets, net of accumulated depreciation, used in governmental activities are financial resources and, therefore, are not reported as assets in the governmental The deferred outflows and deferred inflows related to pensions are applied to future periods and, therefore, are not reported in the governmental funds.  are different because:  funds.  3,219,316  Deferred outflows related to pensions Deferred inflows related to pensions  373,126 (51,972)  Long-term liabilities are not due and payable ini the fiscal year and, therefore, are not reported as liabilities in the governmental funds. Long-term liabilities at year-  end consist of: Notes payable Compensated absences payable Net pension liability  (1,279,121) (43,496) (738,948) $ 4,730,591  NET POSITION OF GOVERNMENTAL ACTMITIES  See Accompanying Notes to Financial Statements  15    POLK CITY; FLORIDA.  STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN: FUND BALANCE.- GOVERNMENTAL FUNDS FORTHE: YEAR ENDED SEPTEMEBER 30, 2019  General. Fund. $.1 1,456,664: 251,157 330,394 361,125: 11,167. 157,647. 38,760 2,606,914: 622,146 445,961 361,052 331,290 148,045 25;095 119,810. 2,053,399 553,515 25,000 25,000 578,515 2,673,171 $ 3,251,686  REVENUES: Taxes Licenses and permits. Intergovernmental revenue Charges for services Fines and forfeitures Impact fees Other Total rèvenuès EXPENDITURES: General. government Public safety Physical environment Transportation Culture/recreation Capital: outlay. Debtsèrvice Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING: SOURCES: Transfers in - Total other financing sources NET. CHANGE IN FUND BALANCE. FUND BALANCE, beginning of year FUND BALANCE, end of year.  See Accompanying! Notes to Financial Statements  16;    POLK CITY, FLORIDA  RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES  FOR THE YEAR ENDED SEPTEMBER 30, 2019'  NET CHANGE IN FUND BALANCES- -1 TOTAL GOVERNMENTAL FUNDS  $ 578,515  Amounts reported for governmental activities in the statement of activities are different Governmental funds report capital outlay as expenditures. However, int the government-wide statement of activities, the cost of those assets is allocated over their estimated useful lives as  because:  This is the amount of capital assets additions int the current period. This is the amount of depreciation recorded in the currént period.  18,551 (133,949)  Long-term obligations including bonds and notes payable and compensated absences are reported as liabilities in the government-wide: statement of activities but are not reported as liabilities ini the governmental funds because they do notr require the use of current financial resources: This amount represents long-term debt repayments. This amount represents the change in compensated. absence liability.  74,320 (3,705)  Pension costs are recorded in the statement of activities under thei full accrual basis of accounting, This amount represents the change in deferred outflows related to pensions. This amount. represents the change in deferred inflows related to pensions. This amount represents the change int the net pension liability. CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES  but are not recorded int the governmental funds until paid.  88,427 879 (215,661) $ 407,377  See Accompanying Notes to Financial Statements  17    POLK CITY, FLORIDA AS OF SEPTEMBER 30, 2019  STATEMENT OF NETI POSITION -PROPRIETARY FUNDS  Enterprise Fund: $ 2,004,029 200,230. 37,364 2,241,623. 1,916,430 4,811,002 8,670,191 15,397,623 17,639,246 104,459' 810,157 914,616. 13,634 5,932. 399,250 53,780 2,397 300,231 775,224. 308,374 9,180 206,873 11,813,454 12,337,881 13,113,105 14,550 14,550 1,868,676 348,156 1,069,803, 83,420. 2,056,152 5,426,207  ASSETS Current assets:  Cash and cash equivalents Customer accounts réceivable, net Prepaid expenses Total current assets Noncurrent assets: Restricted. assets:: Cash and cash equivalents Capitàl assets, nét:. Non-depreciable Depreciable, net Total noncurrent assets. TOTAL. ASSETS Pensions LIABILITIES Current liabilities: Accounts payable Accrued payroll Bonds and notés payable, current portion Accrued interest payable Due to other governments" Construction payable Total current liabilities Noncurrent liabilities: Customér deposits. Compensated absences Net pension liability. Bonds and notes payable, noncurrent portion Total nonçurrent liabilities TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Pensions NET POSITION Net. investment in capital assets Restricted for: Water system improvements Waste water system. improvéments Debt service Unrestricted TOTAL NETPOSITON  DEFERRED OUTFLOWS OF RESOURCES Deferred charge on bond refunding,  TOTAL DEFERRED OUTFLOWS OF. RESOURCES  TOTAL DEFERRED INFLOWS OF RESOURCES  See Acçompanying: Notes to Financial Statements  18    POLK CITY, FLORIDA  STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2019  Enterprise Fund $ 2,411,484 2,411,484 446,466 648,817 330,636 1,425,919 985,565 (402,645) 6,518 (396,127) 589,438 128,000 297,523 425,523 (25,000) (25,000) 989,961 4,436,246 5,426,207  OPERATING REVENUES: Charges for services Total operating revenues OPERATING EXPENSES: Personnel services Operating expenses Depreciation Total operating expenses OPERATING INCOME Interest expense  NONOPERATING REVENUE (EXPENSE): Other nonoperating revenue (expense), net Total nonoperating revenues (expenses) Income (loss) before contributions CAPITAL CONTRIBUTIONS: State grants Impact fees. Total capital contributions TRANSFERS IN (OUT) Transfers to other funds Total transfers Change in net position  TOTAL NET POSITION- - beginning of year TOTAL NET POSITION - end of year  $  See. Accompanying Notes to Financial Statements  19    POLK.CITY, FLORIDA  STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS FOR: THE YEAR ENDED SEPTEMBER 30, 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers Payments to suppliers Payment for salaries, and benefits Net cash flows from opérating activitiès- CASHT FLOWS FROM: NONCAPITAL FINANCING. ACTIVITIES: Transfers (to); from other funds Other nonoperating reyenue Net cash flows from noncapital finançing activities : CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction; of capital assets; net of relatéd payables Principal paid om notes, bonds and lease obligations Net cash flows from capital and related finançing activities NET INÇREASE (DECREASE) IN CASH:AND CASH EQUIVALENTS CASH) AND CASHI EQUIVALENTS, beginning of year CASH AND CASHEQUIVALENTS, end of year Recorciliation: of operating income (loss) to net cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating inçome tor net cash from operating activities: Depreciation (Increase): decrease in' accounts reçeivable (Increase). decrèase inj prepaid expenses Increase (decrease) in accounts payable AIncrease (decrease) int the net pension liability. Increase (decrease) in customer deposits Nét cashi flows from operating activities Noncash financing and. investing activities:  Enterprise Fund $ 2,410,002 (672,767): (410,299) 1;326,936. (25,000). 6,518. (18,482) (1,786,585)  297;523: 1,285;213 (428,846) (337,061) (969,756) 338,698- 3,581,761 : : 3,920,459  Impact fees Bond proceeds Interest paid on borrowings  $.  985,565; 330,636: (18,069) 5,750 (29,700) 3,611 (22,004) :( (757) 55,317 16,587- 1,326,936. 128,000.  Increase (decrease) in accrued payroll and compensated absences Increase (decrease) in deferred outflows of resources: related to pension increase (decrease) in deferred inflows of resources related to pension:  $  Florida, Department of Enviromental Protection, Loan' WW531400 Loan Forgiveness,  See Accompanying Notes to Financial Statements  20"    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  The City's financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governimental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its statements (GASBS) and Interpretations (GASBI). The more significant accounting policies established in GAAP and used by the Cityi is discussed below.  A. REPORTING ENTITY  Polk City, Florida (the "City") is a political subdivision of the State of Florida created in 1925 by Chapter 11016, Laws of the State of Florida. Ordinance No. 2014-02, approved by the City's electors, effective April 1,2 2014, changed the name from the City of. Polk City to Poik City. The City operates under a commission/manager form of municipal government and provides general municipal services, including public safety, public works, culture, recreation, community development, and water and sewer services. These financial. statements include all of the funds, organizations, agencies, departments and account groups of the City (the "primary government") and any "legally". separate entities. ('component units") required by generally accepted accounting principles to be included in the reporting entity. The accompanying financial statements present the City's primary government and component units over which the City exercises significant influence. Criteria for determining if other entities are potential component units oft the City which should ber reported with the City's basic financial statements are identified and described in the GASB Codification of Governmental Accounting and Financial Reporting Standards. The application of these criteria provides for identification of any entities for which the City is. financially accountable and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's basic financial statements to be misleading or incomplete. Ab blended component unit, although legally separate, is in substance part of the City's operations and presented in the financial statements as "blended" components. Blending refers to the fact that the component unit's funds are combined with those of the primary government fort financial reporting purposes. There are no entities that meet the criteria fori inclusion as either blended or discreetly presented component  units.  B. BASIC FINANCIAL STATEMENTS  The basic financial statements consist of the government-wide financial statements and fund financial Government-wide Financial, Statements The required government-wide financial statements are the Statement of Net Position and the Statement of Activities, which report information on all of the nonfiduciary activities of the City. The effects of interfund activity have been removed from these statements. The City- has no fiduciary funds, however if it did they would be excluded from the government-wide financial statements since by definition, these assets are being held for. the benefit of a third party and cannot be used to fund activities or obligations of the government. Governmental activities, which normally are supported byt taxes and intergovernmental revenues, are reported separately from Business-type activities,  statements.  which rely to a significant extent on fees ànd charges for support.  21    POLK CITY,FLORIDA NOTES.TO FINANCIAL STATEMENTS September. 30; 2019  NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont...)  The Statement of Activities demonstrates the degree to which: the direct expenses of a given function or segment are. offset by. program revenues. Direct expenses are. those that are clearly. identifiable with a specific function. or segment, including depreciation:: The City does not allocate the interest expense of governmental fund debt or indirect costs such, as finance, pérsonnel, legal, etc. 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 furiction or segment, Taxes ànd other items not properly included among program revenues are. reportedi instead: as generalrevenues. Fund Financial Statements - The financial transactions of the City, are. recorded in individual funds: Each fund is accounted for by providing a separate set of self-balancing. accounts. that. comprisés its assets; deferred outflows of resources, liabilities, deferred inflows: of resources, fund eguity, revenues: and expenaiuresexpenses. The. emphasis in fund financial statements is on the major. funds in either the governmental or: business-type activities categories. Major individual govérnmental funds and major individual enterprise funds are. reported as separate columns. in the fund financial statements. The GASB. codification' Section 2200.159 sets forth minimum criteria (percentage of thé assets and deferred. outflows ofr resources; liabilities and deferred, inflows ofr resources, revenues or expendtureslexpenses of either fund. category. or. the governmental and enterprise combined) for the determination of major funds. Non-major funds: by. category are summarized into a single column: Due to the City's fund structure, there were no non-major funds. The various funds arè, reported by type within the financial statements: The following" fund typès. and funds are used andi reported by the City:  a); Governmental Furids: The focus of the governmental. fund's measurement (in the: fund statements) is ypon determination. of financial position and changes in financial position (sources, uses, ànd balances of financial resources): rathèr, than upon net income. The following is a  description' oft the governmentalfunds of the City;  General Fund is the general operating fund oft thé City. Itis used. to account fora alli financial  resources except those required to be accounted fori in another fund:  b) Proprietary Funds: The: focus of the proprietary fund's. measurement is upon determination of., operating income,. changes in net' position, finançial position," and cash: flows, The genérally açcepted accounting principles applicable are those similar to businesses in the private sector. The  following is a description of the proprietary funds of thè Cityi,  Enterprise Funds are. required! to be used. to account for operations for which a fee is charged to external users for goods or. services' and the activity (a) is financed with. debt that js solely secured by a pledge oft the netr revenues; (b) has third party, requirements that. the çost of providing services, including capital costs, be. recovéred" with. fees and charges; or (C), establishes fees and chàrges. based on aj priçing. policy designed to recover" similar costs. The City has' one Enterprise Fund which. accounts for the activities associated with providing potable water and sewer: collection, treatment and disposal serviçes to. area  residents.  :  22    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont...) C.MEASUREMENT FOCUS, AND BASIS OF ACCOUNTING  The government-wide financial statements and the proprietary fund 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. Imposed nonexchange transactions (property taxes, fines) are reported as deferred inflows if received before the tax is levied or before the date when use is first permitted. Government mandated nonexchange transaction (grants) and voluntary nonexchange transaction (donations) resources are reported as liabilities until the eligibility requirements are met and as deferred inflows ifr received before time Operating revenues shown for proprietary operations generally result from producing or providing goods and services such as water and sewer. Operating expenses for these operations include all costs related top providing the service or product. These. costs include billing and collection, personnel and purchased services, repairs and maintenance, depreciation, materials and supplies, and other expenses directly All other revenue and expenses not meeting these definitions are reported as nonoperating revenues and Governmental fund financial statements are reported using the current. financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within 60 days of the end of the current fiscal period. Expenditures generally are recorded when al liability is incurred, as under accrual accounting. However, debt service. expenditures, as well as expenditures related to claims Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to. accrual and sO have been recognized as revenue of the current period. Expenditure-driven grants. are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (60 days of yearend). All other revenue items are considered to be measurable and available only when cash is received by the government. D. ASSETS, LIABILITIES, DEFERRED OUTFLOWSINFLOWS OF RESOURCES, AND NET  requirements are met.  related to costs of services.  expenses.  and judgments, are recorded only when payment is due.  POSITION/FUND BALANCE  CASH AND CASH EQUIVALENTS - Includes all short-term highly liquid investments with a maturity of three months or less when purchased, and all bank demand deposits, certificates of deposit, money-market and savings accounts. At September 30, 2019, all ofi the City's cash and investments met this definition. INVESTMENTS- - All investments are reported at fair value which is the price that would be received to sell an investment in an orderly transaction between market participants. Purchases and sales of investments are reflected on trade dates. Net realized gains or losses on sales of investments are based on the cost of investments applied on ai first-in, first-out basis and are reflected in current operating results.  23    POLK CITY, FLORIDA: NOTES TO FINANCIAL STATEMENTS September 30; 2019:  NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont..):  CUSTOMER. ACCOUNTS RECEIVABLE- The City accrues its unbilled utilitys service fees, This reprèsents the estimated valué of sèrvice from. the last billing date to year end and totaled $226,414 at September 30, 2019. A reserve for doubtful accounts is. maintained in eàch fund equal to the value of the. utility customer., receivables that are: not expected. to be collected. As of September 30; 2019, the reserve. for doubtful: accounts, totaled $51,530 for utility. service receivables and $68,836 for readiness-to-serve receivables. Receivables are reportedi inj the financial statements net oft the reserye for doubtful accounts: INTERFUND REÇEIVABLES AND PAYABLES To the extent. any interfund balances exist, management INVENTORIES - Supply inventories oft the general, fund and the entèrprise. funds are. immaterial and not CAPITAL ASSETS In the government-wide: financial statements capital assets include land, buildings, improvements, utility plant, and furniture, and equipment with. an, individual cost of $1,000 or. more and àn estimated useful life in excess: of two. years as defined by City resolution. Such assets are, recorded at historical cost, if purchased. and at acquisition cost if. donated.. Major additions are: capitalized while maintenance. and: repairs which do not improve or extend the life of the respective assets are charged to' expense. Governmental fund infrastructure assets (e.g., roads, bridges, sidewalks, streets, drainage systèms and lighting system), acquired prior to October 1,2003; have' not been. reported. Ini the fund financial stâtements, capital assets used in governmental fund operations are accounted for as capital outlay: expenditures of the governmentàl fund: upon" àcquisition. Capital assets. used: in proprietary fund operations are. accounted for the same as. int the government-wide statements. Capital asset depreciation: is recognized using the straight-line method. over the estimated uséful. lives of  anticipates. they will be settled ini cash as opposed to à permanent transfer. reçorded as assets. Suchi items are charged to expense when. purchased.  the related, àssets, as follows:  Type" Utility plant in service Buildings andi improvements infrastructure Machinery and equipment Vehicles.  Years : 40 10-30 40 3-10- 5-7.  : :  RESTRICTED ASSETS Includes cash and investments that. are: legally restricted to specific uses, by external partiès.: The City genérally uses restricted. resources first when. an expense is incurred for which. INTEREST. COSTS - Interest costs are capitalized when incurred on debt where proceeds were. uséd to finance the construction of enterprisé fund. capital. assets. Interest earned on proceeds of tax-exempt borrowing arrangements restricted to the. acquisition of qualifying assets is offset against interest costs in determining the amount to. be capitalized. No. nef interest costs were- capitalized for the year ended.  both restricted and unrestricted resources are available.  September 30, 2019.'  24    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont...)  PENSIONS In the government-wide statement of net position, liabilities are recognized for the City's proportionate share of each pension plan's net pension liability. For purposes ofr 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 Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) defined benefit plan and additions to/deductions from the FRS and the HIS fiduciary net position have been determined on the same basis as they, are reported by the FRS and the HIS plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are DEFERRED OUTFLOWSINFLOWS OF RESOURCES In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflow of resources, represents a consumption of net position that applies to future periods and sO will not be recognized as an outflow of resources expenselexpendinure) until then. In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents and acquisition of net position that applies to future periods and sO will not be recognized as an inflow of The City has deferred outfiows/inflows of resources that are related to pensions that qualify for reporting in these categories. The deferred outflows/nflows related to pensions are reported only in the government- wide and proprietary fund statement of net position. A deferred amount related to pensions results from the difference in the expected and actual amounts of experience, earnings, and contributions. These amounts are deferred and amortized over the service. life of all employees that are provided with pensions through the pension plan except the difference between expected and actual earnings which are amortized over five years. Actual contributions made to the pension plans subsequent to the measurement date are also reported as deferred outflows of resources aty year-end and reflected as a reduction in the net pension The City also reports a deferred charge on bond refunding as a deferred outflow of resources which is the difference in the carrying value of ar refunded debt and its reacquisition price. This amount is deferred and LONG-TERM OBLIGATIONS - Int 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, discounts and any bond insurance costs are deferred and amortized over the life oft the bonds using the bonds outstanding method. Debt issuance costs, other than bond insurance costs, are reported, as expenditureslexpenses int the period incurred, Bond premiums and discounts are reported, net of amortization, in the related debt balances shown in the financial statements. Long-tèrm debt for governmental funds is not reported as liabilities in the fund financial statements; rather the debt proceeds are reported as other financing sources and payments of principal and interest are reported as expenditures when due. The accounting for the proprietary fund is the same in the fund statements as it is in the COMPENSATED ABSENCES - Sick leave is credited to an employee on the basis of nine hours per month ofservice nott to exceed ninety days. Accumulated: sickl leave does noty vest andi is not paid upon termination ofe employment. Vacation leave is credited to an employee depending on years ofs service, ranging from four to sixteen days per year. Vacation leave accumulation is limited to 240 hours for all employees. Upon termination, employees. will be paid for 100% of the current" year unused vacation and 50% for any prior year earned vacation that had been carried over to the year of termination. Eligible employees accumulate  reported at fair value.  The City's retirement plans and related amounts are described in a subsequent note.  resources (revenue) until that time.  liability in the subsequent year.  amortized over the shorter of thel life of the refunded or refunding debt.  government-wide statements.  two personal days a year noti to exceed ten days.  25    POLK CITY, FLORIDA - NOTES TO-FINANCIAL STATEMENTS September 30, 2019  NOTE1-S SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont..)  The liability for these compênsated absences is recorded as long-term in the government-wide statements and: in. the. proprietary fund financial statements because the maturities are not detèrminable. In the fund financial statements; the governmental funds do not report the compensated absence liability because itj js CONNEÇTION FEES: AND. IMPACT FEES . Connection fees represent. reimbursement of the costs incurred to perform, the connection oft the respective utilities and are. recorded as operating revenue when received. Impact fees, which are not considered connection fees since they: substantially. exceed the cost of connection, are recorded as capital contributions when received. Prepaid: impact fees received which reserve çapacity in the City's future water- or sewer facilities are deferred- and reported as capital INTERFUND. TRANSFERS-F Permanent reallocation ofr resources between funds of the reporting entity are classified as interfund transfers. For purposes oft the Government-wide Statement of Activities, all intèrfund  generally not payable from' expendable. available financial resources.  contributions when the requirements of the Developer agreements are met the transfers. between. individual enterprise funds, when applicable, are eliminated..  .  by City.  EQUITY CLASSIFICATIONS.  Government-wide Statements The differênce between (a) assets and deferréd outflows oft the. resources and (b), liabilities and deferred inflows of resourçes is classified as. net position. and displayed in: three  components:.  a). Néti invèstment in, capital assets' Consists of capital assets. including restricted capital assets, net of accumulated, depreciation, prepaid bond insurance costs ànd the deferred charge on bond refunding which. is then reduced- by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable. to the acquisition, construction, or improvément b).: Restricted. net position. - Consists of restricted: assets reduced. by. liabilities related to those assets. The government-wide statement of net position reports $2,508,807 of restricted. net, Unrestricted net position: : Consists of the net amount of the. assets, deferred outflows of resources, liabilities, and' deferred inflows of resources. that; àre not included in the. detérmination of net investment in capital assets or the restricted component of net position..  oft those assets..  position of which: $2,425,387 is restricted by enabling legislation.  Fund Statements The governmental- fund. financial statements present fund. balançes based: on classifiçations that comprise a hierarchy thati is baséd primarily on the extent to which the City is bound to honor the constraints oni the specific purposes for which amounts in those funds can be spent Spendable resources are to. be shown as restricted, çommitted, assigned and unassigned as considered. appropriate in the City's. circumstances. The following classifications déscribe. the relative strength. of the spending constraints: Nonspendable 1 amounts thât cannot be spent either because they, are in nonspendable form or Restricted - amounts. that can be spent only for specific purposes because of constitutional provisions or enabling legislation- or because of constraints that are externally imposed by. creditors, grantors,  because they arel legally or contractually reguired to be. maintained intact. contributors, or thé laws or régulations of other governments.  26.    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont...)  Committed- - amounts constrained to specific purposes by formal action (ordinance) of the City using its highest level of decision-making: authority (the City Commission). To be reported as committed, amounts cannot be used for any other purpose unless the City Commission takes the same highest- Assigned - amounts that are constrained by the City's intent to be used for a specific purpose but are neither restricted nor committed. This intent can be expressed by the City Commission or through the City Commission delegating this responsibility to the City Manager through the budgetary process. The City Commission has not established ai formal policy regarding authorization to assign fund balance The City uses restricted fund balances first, followed by committed resources, andi then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to  level action (ordinance) to remove or change the constraint  amounts for a specific purpose. Unassigned- - all other spendable amounts. defer the use of these other classified funds. NOTE2- - PROPERTY TAX CALENDAR  Under Florida Law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices oft the Polk County Property Appraiser and Polk County Tax Collector. The tax levy of the City is established by the City Commission prior to October 1 of each year and the Polk County Property Appraiser incorporates the millage intot thet total tax levy, which includes the municipalities, the County, independent districts and the Polk County School Board tax requirements. State statutes permit municipalities to levy property taxes at a râte of up to 10 milis. The City's millage rate All taxes are due and payable on November 1 (levy date) of each year and unpaid taxes become delinquent on April 11 following the yeari in which they are assessed. Discounts are allowedi for early payment as follows: The taxes paid inl March are without discount. Delinquent taxes on réal and personal property bear interest of 18% per year. On or prior, to June 1 following the tax year, certificates are sold for all delinquent taxes  ine effect for the fiscal year ended September 30, 2019 was 7.2500.  4% in of November, 3% in December, 2% in January, 1% in February.  on real property.  NOTE3-E BUDGETARY LAW AND PRACTICE  Thel budget is adopted by Ordinance on a City-wide basis for all Cityf funds on or before October 1 of each year as required by State Statute. City Ordinance establishes the legal level of budgetary control at the individual fund level. Expenditures may not exceed appropriations at this level. Within these control levels, management may transfer appropriations subject to notifiçation of the City Commission.  27    POLK CITY, FLORIDA: NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 4-1 DEPOSITS AND INVESTMENTS  DEPOSITS IN FINANCIAL INSTITUTIONS Municipalities in Florida are required by State Statute Chapter 280- "Security for Public' Deposits Act", to. deposit operating funds only with financial institutions who are members of the State. of Florida collateral pool ("qualified public depositories"). Thè State: of Florida collateral pooli is ai multiple finançial institution. collateral poolwitht the ability to make addltonalassessments tos satisfy the claims of governmental entities: ifany) member. financial institution fails. This ability provides The captions on. the government-wide statement of net' position for "cash and cash equivalents" both.  protection which, is similar to epositoryinsurance, restricted and unrestricted, àre. summarized below:  Cash and cash équivalents: Cash on hand: Deposits' in financial institutions: Insured: or fully collateralized bank deposits Total cash' and cash equivalents  $ 575 7,143,537 $-.7,144,112.  INVESTMENTS The types of. investments im which the City may. invest are governed. by State Statutes. According to the State Statutes, the City is authorized to invest in the following instruments:, Local Government. Surplus Funds Trust Fund: or any intergovernmental investment pool authorized through the Florida Inter-local: Cooperation Act; S.E.C. registered money market funds" with' the highest crèdit quality rating from a nationally recognized rating company; interest-bearing. time deposits and: savings accounts in- qualified publiç depositories and direct obligations oft the U.S. Treasury. The City maintained no investments  during the. year.  Cb  28    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 5-CAPITAL ASSETS  Capital assets activity for the year ended September 30, 2019, was as follows:  Beginning Balance $ 412,542 $ 412,542 $ 3,418,161 $ 503,467 542,145 129,383 75,626 4,668,782 (955,272) (319,440) (413,436) (33,043) (25,419) (1,746,610) 2,922,172 $  Ending Balance $ 412,542 412,542 3,418,161 503,467 558,227 129,383 75,626 4,684,864 (1,040,091) (336,918) (437,056) (37,177) (26,848) (1,878,090) $ 2,806,774  Transfers  Additions $ $ $  Reductions $ $ $ 18,551  Governmental, Activities: Capital assets not being depreciated: Land Total Capital assets being depreciated: Buildings andl Improvements Recreational Facilities Equipment Infrastructure: Sidewalk Systems Drainage Systems Total Less, Accumulated Depreciation: Buildings and Improvements Recreational Facilities Equipment Infrastructure: Sidewalk Systems Drainage Systems Total Accumulated Depreciation Total Depreciable Capital Assets, Net Business-Type Activities: Capital assets not being depreciated: Land Construction inp progress Total Capital assets being depreciated: Utility Plant Equipment Total Less, Accumulated Depreciation: Utility Plant Equipment Total Accumulated Depreciation  (2,469)  18,551 (84,819) (17,478) (26,089) (3,673) (1,890) (133,949) $ (115,398) $  (2,469)  2,469 2,469  (461) 461  2,730,736 $ 161,736.00  $ (60,164) 1,978,694  $ 2,730,736 2,080,266 $ 4,811,002 12,366,533 470,766 12,837,299 (3,870,435) (296,673) (4,167,108) $ 8,670,191  2,892,472 $ (60,164) $ 1,978,694 $ 12,268,965 $ 60,164 $ 37,404 $  400,048 12,669,013 (3,565,342) (271,130) (3,836,472)  70,718 108,122 (305,093) (25,543) (330,636)  60,164  Total Depreciable Capital Assets, Net $ 8,832,541 $ 60,164 $ (222,514) $  29    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 5- CAPITAL ASSETS (cont..)  Depreciation expense was charged to. the following programs and functions:  Governmental Activities: Géneral government Streets. Parks and recreation Stormwater utility  81,496 17,974' 32,588 1,891 133,949  Total depreciation expense governmental activities.  Business-type. Activities: Water and sewer  ) 330,636. 3 330,636  Total dépreciation" expense business-type activities  30.    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 6-LONG-TERM OBLIGATIONS  The following is a summary of changes in long-term obligations for the year ended September 30, 2019:  Beginning Balance  Additions  Reductions  Ending Balance  Current Portion  Governmental, Activities Long-Term Debt: Notes Payable: Direct borrowings or placements: Citizens Banka and" Trust Installment Note Total Notes Payable Other Liabilities: Compensated. Absences Net Pension Liability Total Other Liabilities Total Long-Term Liabilities Less Amount Duei in One. Year Netl Long-Term Debt Due After One Year Business-Type. Activities Long-Term Debt: Direct borrowings orp placements: Notes Payable: Installment Note to Floridal Department of Environmental Protection (WW51201P) Installment Notet toF Floridal Department of Environmental Protection (WW531400) Installment Note toF Floridal Department of Environmental Protection (WW531402) Tax-Exempt Leasing Total Notes Payable Other long-term debt: Revenue Certificates: Series 2017 Water/ Sewer System, Refunding Revenue Bonds Add premium on Series 2017 Total Revenue Certificates Other Liabilities: Compensated Absences Net Pension! Liability Total Other Liabilities Totall Long-Term Liabilities Less Amount Duei in One Year Netl Long-Term Debt Due After One Year  $ 1,353,441 $ 1,353,441 39,791 523,287 563,078  $ (74,320) $ 1,279,121 $ 76,922  (74,320)  1,279,121 43,496 738,948 782,444 2,061,565 $ 76,922 (76,922) 1,984,643  76,922  3,705 215,661 219,366  1,916,519 $ 219,366 $ (74,320)  $ 2,182,029 $ 160,000 66,699 2,408,728 1,285,213 8,425,000 650,609 9,075,609 7,341 151,556 158,897  - $ (122,354) $ 2,059,675 $ 125,321  803 1,284,410  (125,162) (21,624) (269,140) (240,000) (47,706) (287,706)  35,641 1,284,410 45,075 3,424,801 8,185,000 602,903 8,787,903 9,180 206,873 216,053 12,428,757 $ 399,250 (399,250) 12,029,507  1,702 22,227 149,250 250,000 250,000  1,839 55,317 57,156  11,643,234 $ 1,342,369 $ (556,846)  31    POLK.CITY, FLORIDA NOTES TO: FINANCIAL STATEMENTS September 30, 2019:  NOTE 6-1 LONG-TERM OBLIGATIONS (cont..,) Notes to Long-Term Obligations Table whicht the liability is directly. associated. Governmental Activities:  Long term. liabilities, including compensated absences, are typically. liquidated by thei individual fund to  Citizens Bank and. Trust Installment Note - This. note is secured: by the all revenues. of the City's. communications serviçé. tax and thè. City's half-cent sales tax. This note. bears intérest at 3.4%; with monthly principal and interest payments on the first day, of each month, with ai final maturity of January1,2033. The note proceeds werè used to retiré! the Cily/soutstanding: Series 2007 Capital Improvement: Revenue. Borids which were used to construct the City's administration: facilities.  Business-Type Activities:  Series 2017 Water and Sewier System Refunding Revénue Bonds: - The Water and Sewer System Refunding, Revenue Bonds, Series 2017 are. secured. by. the. net revenues. of the system, certain. public serviçe tax, revenues, àndi moneys on deposit in various funds and accounts of the City. The. Series 2017 bonds bear interest at 3.00 - 4.25. with a final maturity of August 1, 2041. The bonds The Series 2017. bond proceeds werè. used to advânce refund the City's outstânding Water and Sewer System, Capital Improvement and Refunding Bonds, Series 2011A and to pay. the costs of issuance of the Series 2017- Bonds.. The reacquisition: priçe exceeded. the net carrying amount of the old debt by $939,356. This amount was deferred ànd, is being amortized. over the. remaining life The City defeased the Series 2011A bonds by. placing the proceeds of thé Series 2017. bonds, along with a City, contribution of $836,993 in, an irrevocable trust to provide for future. debt service payments on the 2011A bonds until they are fully retired on August 1, 2021. Accordingly, the trust account assets and: the liability for the defeased debt is not included: in these financial statements. As of Séptember 30, 2019, $8,600,000: oft the defeased: 2011A debt is still outstanding: Installment Note to Florida Department of Environmental Protection (WW 51201P) - This: note is secured by the: net reyenues of the sewer. system and sewer impact fees. The note bears interest at2.41%; with semi-annual. principal and interest payments: on- March' 15 and September. 15witha final. maturity in. Séptember 2033. The note proceeds were used' to fund the. planning, administrative, and engineering costs for construction ofv wastewatertansmisson, collection, reuse  require. the maintenance. of sinking, and renewal and replacement funds.  of the new debt:  and treatment facilities. The Note requires, the maintenance of a sinking fund.  32    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 6 LONG-TERM OBLIGATIONS (cont...) Notes to Long-Term Obligations Table (cont..)  Installment Note to Florida Department of Environmental Protection (WW 531400) This note is secured by the netr revenues of the water and sewer system. The note bears interest at 0.76%, with semi-annual principal and interest payments on March 15 and September 15 with a final maturity ins September 2039. The note proceeds were used tot fund the designofwastewater. pollution control Installment Note to Florida Department of Environmental Protection (WW 531402) This note is secured by the net revenues oft the water and sewer system. The notel bears interest at 0.46%, with semi-annual principal and interest payments on May 15 and November 15 with a final maturity in November 2041. The note proceeds were used to fund the construction of wastewater pollution Tax Exempt Lease Purchase Agreement - This agreement is secured by a lien on the equipment acquired. The agreement bears interest at 2.79%, with annual principal and interest payments on April 15 with af final maturity in April 2021. The agreement proceeds were used tot fund the purchase Remedies in the Event of Default - The debt obligations all allow for the obligors to take whatever legal actions necessary to collect the amounts due in the event of default. The following debt obligations have  facilities. The Note requires the maintenance of a sinking fund.  control facilities. The Note requires the maintenance of a sinking fund.  of water meters and related equipment.  additional remedies in the event of defaults as follows:  Citizens Bank and Trust Installment Note If an event of default has occurred and be continuing beyond any cure period, the lender may declare the principal and accrued unpaid interest on the note immediately due and payable and to exercise all the rights and remedies of a secured party under the Uniform Commercial Code with respect to all or any portion of the pledged revenues. State Revolving, Funds (SRF) Loans The lender, subject to the rights of superior liens on the pledged revenues, may request a court to appoint a receiver to manage the water and sewer systems, intercept the delinquent amount from any unobligated funds due to the City under any revenue or tax sharing fund established by the State of Florida, impose a penalty in the amount not to exceed a rate of 18 percent per annum on the amount due, notify financial market credit rating agencies and potential creditors and may accelerate the repayment schedule or increase the interest rate on the unpaid principal of the loan to 1.667 times the loan interest rate.  33    POLK CITY, FLORIDA. NOTES TO: FINANCIAL STATEMENTS September 30, 2019  NOTE6- LONG-TERM OBLIGATIONS (cont..), Notes to Long-Term Obligations Table (cont..)  Maturities: follows:  Annual requirements to repay all long-term bonds and! notes payable as of September 30, 2019; were as  Governmental, Activities placements Principal Ihterest 79,615. 40,172: 82,401 37,385 85,286. 34,501. 88,271 31,515 489,923 109,009. 376,703 22,586  Business-Type. Activities Other long-term debt Principal Interest 260,000. 311,725 265,000 303,925 275,000 295,975 280,000 287,725 1,565,000., 1,276,425 1,905,000 937,025 2,637,433 2,320,000. 523,225 2;392,749 1,065,000 68,425 602,903:  Direct borrowings ando direct Direct. borrowings and direct  Fiscal Year Ending September 30, 2020. 2021 2022 2023 2024- 2025-2029 2030-2034 2035-2039 2040-2044 Add: unamortized bond premium Tofal  placements Principal Interest 1,186,297, 53,992 145,155 44,121 148,411. 40,865 151,745 37,532 811,575 134,805. 732,433 39,739 72,749 1,606, 27,186 163,  Total Prinçipal Interest 1,446,297 365,717 410,155 348,046 423,411 336,840 431,745 325,257 2;376,575. 1,411,230 976,764. 524,831 1,092,186 68,588 602,903.  76,922: $ 42,865 $ 149,250 $ 50,413 $ 250,000 $. 319,225. $ 399,250 $: 369,638,  $1,279,121 $318,033 $. 3,424,801 $ 403,236 $ 8,787,903' $4,323,675 $ 12,212,704 $-4,726,911  NOTE7-FUTURE REVENUES THAT ARE PLEDGED  The City has pledged various future revenue. sources for various debt issues. For. the water and, sewer. systems, thé, City has pledged. future revenues; net. of certain. operating expenses. The following table provides a summary of the pledged revenues for: the Cily's.outstanding. debt issues. Additional information  regarding the City's pledged revenue can be found in Note 6.  %of Reyenues to Interest Paid  Principal and Principal and Interest: Outstanding  Interest Paid:  Current' Year. Principal and Revénue. 335,830. 1,528,121  Pledged Revenue  Communication: services tax pursuant to Section: 202.19, Florida! Statutes; and thel half cent sales tax pursuant to' partMI. of Chapter 218, Florida Statutes Water and sewer system net revenue and. sewer impact fees.  1,597,154 $ 119,787 16,290,179'  280.36% 175.89%  868,815  34.    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 8- INTERFUND TRANSACTIONS Interfund transactions are summarized below:  Interfund receivables and payables as of September 30, 2019 consisted of:  Receivable Fund Enterprise Fund  Payable Fund General Fund  Amount $  The above interfund balances arose from the fund with the receivable incurring cost on behalf of thei fund  with the payable which were not repaid prior to year-end.  Interfund transfers for the year ending September 30, 2019 consisted of:  Receiving Fund General Fund  Paying Fund Enterprise Fund  Amount 25,000  The transfer from the enterprise fund to the general fundi is al budgeted annual operating transfer to  finance services accounted fori in the general fund.  NOTE 9-1 PENSION PLAN  Florida Retirement System (FRS)- - Defined Benefit Pension Plans  General Information about the FRS  The FRS was created in Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS)Program, a cost-sharing multple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health Essentially all regular employees of the City are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defineda land described in detail. Such. provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists. of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is  insurance.  available from the Florida Department of Management Services Web site.  35    POLK CITY, FLORIDA. NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE9- PENSION PLAN (cont....) FRS Pension Plan  Plan Description. The FRS Pension Plan (Plan) is a cost-sharing muliple-employer. defined! benefit. pension plan,; with a Deferred Retirement Option Program (DROP) for eligible employees. The genéral classes of Regular. Class - Members oft the FRS who doi not qualify for membership. inj the other classes. -S Senior Management Service Class (SMSC) - Members in senior management level positions. Employees enrolled, in the Plan prior to. July 1, 2011, vest at 6 years of creditable service and employees enrolled. in the Plan. on or after July: 1; 2011,. vest at 8 years of creditable service. All vested: members, enrolled prior to July 1, 2011, are. eligible for normal retirement benefits at age 62 or at any age after 30, years of seryice. All members enrolled: in' the. Plan on or aftèr July 1, 2011, once vested, are: eligible for: normalretirement benefits at age 65 or any time after 33 years of creditable service. Thel Plan also includes an. early retirement provision; howevér, thère is a bènefit reduction for each year a member retirès beforê his or her normal retirément date. The Plan provides retirement, disability, death benefits; and annual cost- DROP,, subject to provisions of. Section 121.091, Florida Statutes, permits employèes eligible for. normal retirement under the Plan to defer receipt of monthly benéfit payments while continuing employment with an FRS participating employer.. Anemployee) may participate inl DROP: for a period nott to exceed 60 months after electing to participate. During the period of DROP participation, deferred' monthly. benefits are: held in the FRS. Trust Fund and accrue. intèrest. The net pension liability does, not include amounts: for DROP participants; as these members are considered retired, and are. not açcruing additional pension benefits.: Benefits Provided. Benefits: under the Plan are computed on the. basis of agè ànd/or years, of service, average final compensation; and's sérvice credit. Creditf fore each year ofs service is expressed as a percentage of the. average final compensation, For members initially enrolled: before July 1, 2011, the average final compensation is. the, average of the 5, highest fiscal years' earnings; for members initially; enrolled on or after July 1, 2011, the àverage final compensation is the average of the. 8 highest fiscal years' earnings. The total perçêntage value of the benefit received is determined by calculating the total value of all service; which is based on the retirement class to which the member belonged when the service credit was. earned., Members are. eligible for in-line-of-duty: or regular disability andi survivors' bénefits: The following chart  membership are as follows:  of-living adjustments to eligible participants.  shows the perçentage value for each year of service credit earned:  36    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 9- PENSION PLAN (cont....)  %V Value (per year of service). 1.60 1.63 1.65 1.68 1.60 1.63 1.65 1.68  Class, Initial Enrollment, and Retirement Age/Years of Service Regular Class members initially enrolled before. July 1, 2011 Retirement up to age 62 or upt to 30 years of service Retirement at age 63 or with 31 years of service Retirement: at age 64 or with 32 years of seryice Retirement at age 65 or with 33 or more years of service Regular Class members initially enrolled on or after. July 1,2 2011 Retirement up to age 65 or up to 33 years of service Retirement: at age 66 or with 34 years of service Retirement at age 67 or with 35 years of service Retirement at age 68 or with 36 or more years of service  As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1,2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on- or after July 1, 2011, there is an individually calculated cost-pf-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. Plan members initially enrolled on or after Contributions. The Florida Legislature establishes contribution rates for participating employers and  July 1,2011, will not have a cost-of-living adjustment after retirement. employees. Contribution rates during the 2018-19 fiscal year were as follows:  Prior to July1,2019  After July 1,2 2019  Class  Employee Employer Employee Employer  (A) 8.26%  (A) 8.47% 25.41%  Regular Senior Management  3.00% 3.00% 24.06%  3.00% 3.00%  Note (A) Employer rates include 1.66 percent for the postemployment  health insurance subsidy. Also, employer rates include 0.06 percent for administrative costs of the Investment Plan.  The City's contributions to the Plan totaled $54,115 for the fiscal year ended September 30, 2019.  37    POLK CITY, FLORIDA NOTES TO: FINANCIAL STATEMENTS September 30, 2019  NOTE. 9 PENSION PLAN (cont....)  Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows ofResources Related to Pensions. At September 30, 2019, the City reported a liability of $676,868 for its: proportionate share of the Plan's net pension liability. The net pension liability was measured as of June 30,2019, and' the total pension liability. used, to calculate the net pension liability was: determined by an actuarial valuation as, of.. July 1, 2019. The City's proportionate share oft the net pension liability was baséd ont the City's contributions. for the year ended. June 30, 2019 relative to: the contributions of all. participating members for that period, At June 30, 2019, the City's proportionate share was 0.0019654330 percent, which was an increase 0f.0,00035824101 from its proportionate share measured as of.. June 30, 2018. : - For the fiscal year ended. September 30, 2019, the Gity recognized pension. expense of $196,623. In addition, the City reported. deferred outflows of resourçes and deferred inflows. of resources related to  pensions from the following sources:  Description,  Deferred Outflows Deferred Inflows  of Résources  ofR Resources  Differences between èxpected ànd actual experience Change of, assumptions Net difference! between projected and actual earnings on FRS pension plan investments Changes in proportion and. differençes between City. FRS contributions and proportionate share of contributions City FRS contributions subsequent to the. measurement. date Total  40,147 $ 173,849,  420 37,448 4;334  110,779 17;202 A 341,977. $3  42,202  The deferred. outflows of) resources related. to. pensions, fotaling $17,202, resulting from City contributions to: the: Plan subsequent to the measurément daté, will. be recognized as à reduction of the net: pension liability in the fiscal. year. endéd September 30, 2020. Othèr amounts réported as deférred outflows of. resources and deferred inflows of resources related to pensions will be reçognized in pension expense, as  follows:  38    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 9- PENSION PLAN (cont...)  Fiscal! Year Ending September 30  Amount $ 90,359 39,752 66,363 55,441 23,896 6,762 $ 282,573  2020 2021 2022 2023 2024 Therafter  Actuarial Assumptions. The total pension liability in the. June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:  Inflation Salary Increases Investment rate of retum  2.60 percent  3.25 percent, average, including inflation 6.90 percent, net of pension plan investment expense, including inflation  Mortality rates were based on the PUB2010 base table varies by member category and sex, projected The actuarial assumptions used in the July 1, 2019, valuation was based on the results of an actuarial The. long-term expected rate ofr return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of  generationally with Scale MP-2018.  experience study for the period July 1, 2013, through June 30, 2018.  return for each major asset class are summarized in the following table:  39    POLK CITY; FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 9 - PENSION PLAN (cont..):  Compound Annual Return Deviation. 3.3%. 4.1%. 6.8% 6.1% 8.4% 5.7% 2.6%:  Annual" 3.3% 4.1%. 8:0% 6.7% 11.2% 5.9%  Target Arithmetic (Geometric) Stândard  Asset Class Cash Fixed income Global equity. Real estate Private equity: Strategic investments Total  Allocation (1) Return" 1.0% 18.0% 54.0% 10.0% 11.0% 6.0% 100%  1.2% 3.5%. 16:5% 11:7% : 25.8%- 6.7%- 1,7%  Assumed inflation Mean  (1) As outlined in the Pension- Plan'si investment policy  Discount Rate. The discount rate: used to measure the total pension liability was 6.90' percent. The Plan's fiduciary net position was projeçted to be availablé to make: all projectèd: future benefit payments of current active andi inactive employees. Therefore; the discount rate for calculating the total pension. liability is équal Sensitivity. of the City's Proportionate Share of the Net Position Liability to Changes in the Discount Rate. The following: présents the City's proportionate share of the net pension. liàbility. calculated: using- the discount rate of6.90 percent, as well as what the City's proportionate share of the net pension liability would be ifitv were calculated. using a discount rate thati is 1 percentage-point. lower (5.90 percenporipercentage-  tot the long-term expected rate of return.  point! higher (7.90 percent) than the current rate.  1% 5.90%  Current. 6.90%  1% 7.90%  Decrease Discount Rate. Increase. $1,170,079 $ 676,868 $-264,953  City's proportionate share of the net pension liability. (asset)  Pension Plan Fiduciary! Net Position. Detailed information about the Plan's fiduciary net position is' available int the: separatelyissued. FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Payables to the Pension Plan. At September 30, 2019, the City reported. a payable of $-0- for the' outstanding, amount of contributions to thè Plan required for the fiscal year ended September 30, 2019,  Financial Report.  40.    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 9 - PENSION PLAN (cont....) HIS Pension Plan  Plan Description. The HIS Pension- Plan (HIS Plan) is a cost-sharing, multple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Benefits Provided. For the fiscal year ended June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section. 112.363, Florida Statutes. Tol be eligible to receive al HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Contributions. The HIS Plan is funded by required contributions from ERS participating employers as set by the Florida Legislature. Employer contributions are a perçentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2019, the HIS contribution rate for the period of July 1, 2018 through June 30, 2019 and from July 1, 2019 through September 30, 2019 was 1.66% of payroll pursuant to section 112.363, Florida Statutes. The City contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan' benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail top provide full subsidy benefits to all participants, benefits may be reduced or canceled. The City's contributions to the HIS Plan totaled $13,497 for the fiscal year ended September 30, 2019. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources Related to Pensions. At September 30, 2019, the City reported a net pension liability of $268,953 for its proportionate share of the HIS Plan's net pension liability. The net pension liability was measured as of. June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1,2019. The City'sp proportionate share of the net pension liability was based ont the City's contributions for the year ended June 30, 2019 relative to the contributions of all participating members for that period. At June 30, 2019, the City's proportionate share was 0.002403726 percent, which was an increase of For the fiscal year ended September 30, 2019, the City recognized the HIS Plan pension expense of $39,378. Ina addition, the City reported deferred outflows ofr resources related to pensions from the following  Management Services, Division of Retirement.  0.0006015120 from its proportionate share measured as of June 30, 2018.  sources:  41    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 9 - PENSION PLAN (cont...).  Description.  Deferred Outflows Deferred Inflows:  ofF Resources  of Resources  Differençes between expected and actual experience Change of àssumptions  3,267 $. 31,141 174 : 97,261 3,765 135,608  329 21,983  Net difference between projected and actual earnings on HIS pension plan investments Changes inj proportion and differences betwéen City HIS, contributions and proportionate share of HIS contributions City contributions subsequent: tot the measurement date Total  2,008  24,320  The deferrèd outflows of: resources, totaling $3,765, was. related to. pensions resulting from City contributions to the! HIS Plan subsequent: to the measurement date will be recognized as at reduction of the riet pension liability in the fiscal year ended September 30, 2020. Other amounts reported. as deferred outflows of resources and. deferred- inflows of resources related to pensions. will. be recognized in pension:  expense as follows:  Fiscal Year. Ending September 30  Amount 23,979. 22,567 18,040 13,953 15,401, 13,583 $ 107,523.  2020 2021 2022 2023 2024 Therafter  42    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 9 PENSION PLAN (cont..)  Actuarial Assumptions. The total pension liability in the July 1, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:  Inflation Salary Increases Discount rate  2.60 percent 3.50 percent  3.25 percent, average, including inflation  Mortality rates were based on the Generational RP-2000 with Projected Scale BB. experience study for the period July 1, 2013, through June 30, 2018.  The actuarial assumptions used in the July 1, 2019 valuation were based on the results of an actuarial Discount Rate. The discount rate used to measure the total pension liability was 3.50%. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the FRS Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of3.50 percent, as well as whati the City's proportionate share of the net pension liabilitywould bei ifi it were calculated using a discount rate that is 1 percentage point lower (2.50 percent) or 1 percentage  Actuarial Conference.  point! higher (4.50 percent) than the current rate:  1% 2.50%  Current 3.50%  .1% 4.50%  Decrease Discount Rate Increase $307,024 $ 268,953 $237,244  City's proportionate share of the net pension liability  Pension Plan Fiduciary Net Position. Detailed information about the HIS Plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Payables to the Pension Plan. At September 30, 2019, the City reported a payable of $-0- for the outstanding amount of contributions tot the HIS Plan required for the fiscal year ended September 30, 2019.  Comprehensive Annual Financial Report.  43    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE9- PENSION PLAN (cont....).  Florida Retirement System (FRS): - Defined Contribution Pension Plan.  FRS Investment Plan  The SBA administers the. defined contribution plan officially titled the FRS Investment Plan (Investment Plan).: Thei Investment Plan is. reported: in the' SBA's annual, financial statements: and in the State's: As provided. in Section- 121.4501, Florida Statutes, eligible FRS members may: eléct to participate in. the Invéstment: Plan in lieu oft the FRS: defined benefit plan. City employees already participating in the DROP are not eligible to. participate: inj the Investment Plan.. Employer and employee contributions are defined by. law, but the, ultimate benefit dépends in, part on the performance of invéstment funds. Service retirement benefits are based upon. the value of the member's account upon retirement. Benefit.terms; including: contribution requirements, are established and may: be amended by. the Florida Legislature. The Invéstment: Plan is funded with the' same employer and employée contributions. rates, that, are. based on salary and membership class (Regular. Class; Senior, Management Service. Class, etc.), as thel FRS.defined benefit plan. Contributions are directed toi individual member accounts and thei individual- members allocaté. contributions. and. account balances àmong" various approved investment choices. Costs of administering: the Investment Plan, including, the FRS Financial Guidance. Program,. are funded: through an employer contribution of 0.06 percent pfj payroll and by forfeited benefits of Investment Plan members. Allocations to the Investment Plan member accounts during the 2018-19 fiscal year were as; follows:  Comprehensive Annual Financial Report.  Percent of Gross Compensation 6,30 7.67 14.00  Class FRS, Regular  FRS, Senior. Management Service' FRS, Special Risk, Régular  For all membership. classes; employèes aré immediately vested in their own; contributions and are. vested after 1 year of service for employer. contributions and investment earningsi regardless of membership. class: Ifan accumulated. benefit obligation for service. credit originally earned under the FRS Pension Plan is. trânsferred: to the Investment Plan, the member must have the years of service rèquired for FRS Pension Plan vesting (inçluding the service credit represênted by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placedi in a suspense account foru up to 5 years. Ifthe employee returns" to FRS-covered employment within the 5-year period, the émployee will regain control over their account. Ift the employee does not return within the 5-year period; the employee willf forfeit the accumulated account balance, Fort the fiscaly yeare ended September 30, 2019, thei information for forfeitures' was: unavailable from the SBA; however; management believes that these amounts, if any, After termination and applying to receive benefits, the. member may rollover: vested funds to. another: qualified plan, structure a periodic payment. under the Investment Plan,. receive: a lump-sum distribution, leave the funds. invested for future, distribution, or any combination: of these options. Disability coverage is provided in which the member may. eithér transfer the acçount. balance to the FRS Pension' Plan, when approved for disability retirement to. receive guaranteed lifetime- monthly benefits under, the FRS Pension Plan or remain in the Investment Plan and. rely upon that account balance fori retirement income. The City's Investment Plan persion' expense totaled $14,9151 for thet fiscal year ended September 30, 2019.  would be immaterial: to the City.  44    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 10 -OTHER POST EMPLOYMENT BENEFITS  The City follows GASB Cod. Sec. P521 for certain post-employment health care and dental benefits provided Plan Description = The Other Postemployment Benefits Plan (OPEB Plan) is a single employer defined benefit plan administered by the City. The OPEB Plan allows employees who retire and meet retirement eligibility requirements under the applicable City retirement plan to continue medical insurance coverage Pursuant to the provisions of Section 112.0801, Florida Statutes, former employées who retire from the City are eligible to participate in the City's healthcare and life insurance benefits. The City subsidizes the premium rates paid. by retirees by allowing them to participate in the OPEB Plan at reduced or blended group (implicitly subsidized) premium rates for both active and retired employees. These rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the OPEB Plan on average than those of active employees. The City does not offer any explicit subsidies for retiree coverage. The OPEB Plan doesn't issue a stând-alone financial report and is not included in the annual report of a public employee retirement system of another entity. There are currently 17 active plan members and no inactive plan members. obligation, and the OPEB Plan ist financed on a pay-as-you-go basis.  by the City.  as a participant in the City's health insurance plan.  Funding Policy - Currently, the City's OPEB benefits are unfunded. The City has not advance-funded or established: at funding methodology fort the annual other postemployment benefit (OPEB)costs ort the OPEB Benefits Provided- - The benefits provided. are. the same as those provided for active employees. Spouses and dependents of eligible retirees are also eligible. for medical coverage. All employees of the City who meet the eligibility requirements of the applicable City retirement plan are eligible. to receive postemployment health care benefits. All retiree, spouse and dependent coverage is at the expense of the Total OPEB Liability - The City's total OPEB liability as of September 30, 2018 was determined by an actuarial valuation as of October 1, 2017. The actuarial assumptions used in the October 1,2017 valuation  retiree.  were as follows:  Inflation Salary Increases Disçount Rate Initial Trend Rate Ultimate Trend Rate Year to Ultimate Trend Rate  3.00% 3.00% 3.64% 8.00% 5.00% 6  45    POLK: CITY, FLORIDA: NOTEST TO. FINANCIAL, STATEMENTS September 30,2019  NOTE 10 - OTHER POST EMPLOYMENT BENEFITS (cont...):  For all lives, mortality rates were: RP-2000 Combined' Healthy Mortality: Tables projected. to the valuation Discount Rate - The. discount rate was based on a high-quality' municipal bond rate of 3.64%, Thé high- quality bond rate was based' on the week closést but not later than, the measurement date of the Bond. Buyer 20-Bond' index as published by the Federal Reserve. The. 20-Bond Index. consists of 20 general- obligation. bonds that, mature in' 20-years: The average rating of the, 20 bonds is roughly equivalent to The results of the. October 1, 2017 actuarial valuation produced. an estimated actuarial determined. OPEB. obligation and OPEB expense that was immaterial to. the City's financial statèments and accordingly, there  dâte using projection scale BB.:  Moody's Investors Service's Aa2 rating and Standard & Poor's Corp.'sA AA,  is. no. OPEB liability reçorded in the financial statements.  NOTE 11-JOINT VENTURE  The Polk Regional Water Cooperative (PRWC). was created: on April 1, 2016 by a interlocal agreement between, Polk City, City of Auburndale, City of Bartow, City of Davenport, City of Eagle Lake, City of.Fort Meade, City of Frostproof, City of Haines City, City. of Lake Alfrèd; City of Lakeland, City, of Lake Wales, City of Mulberry, City of Winter Hayen; Town of Dundee,Town of Lake Hamilton and Polk County in accordance with, Chapters 163 and 373'of the Florida Statutes.. These local government units are. collectively considered the Member Governments, The PRWÇ is a separate legal entity organized under the laws of the State of Florida, arid the Member Governments have no equity ownership in the. PRWC. The: PRWC is devoted to encouraging the development of fully integrated, robust public water supply. systems comprised of diverse: sources managed, in: a manner: that take full advantage of Florida's intense climatic cycles to ensure reliable, sustainable and, drought resistant systems which maximize the use. of alternative water suppliès to the greatest extent practicable. The PRWC will evaluate, plan and implement The terms of the interlocal agreemént require each. Member Government to contribute their proportionate share oft the PRWC's annual working capital needs whiçh are. established annually by à resolution of the PRWC's Board, of Directors.. For the year ended September 30, 2019, the total ànnual working capital needs Complete finançial statements of the, PRWC may be obtained from the PRWC's Exeçutive Director at 330:  water projects and coordinate partnerships: with' other. water users.  oft the PRWC was $1,251 of which the City's proportionate share was $198,000. W. Church Street, P.O. Box 9005, Drawer CA01,Bartow, FL33831-9005.  46    POLK CITY, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2019  NOTE 12 - RISK MANAGEMENT AND LITIGATION  During the ordinary course of its operations, the City is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions, injuries to employees, and natural disasters. The City maintains commercial insurance coverage in amounts management feels is adequate to protect and safeguard the assets of the City. There have been no significant reductions in coverage nor have settlement amounts exceeded the City's coverage during the year ended September 30, 2019 or the previous two years. Int the opinion of the City's management and legal counsel, legal claims and litigation are not anticipated to have material impact on the financial position of the City. The City's, workers compensation coverage is provided. through a nonassessable, nonprofit, tax-exempt risk sharing pool.  Settled claims resulting from these risks have not exceeded insurance coverage.  NOTE 13 - COMMITMENTS AND CONTINGENCIES  The City is obligated under certain leases accounted for as operating leases. Operating leases do not give rise to property rights or lease obligations and, therefore, liabilities from the lease agreements are not reflected in the City's account groups. Remaining minimum lease payments are not significant. The City participates in several programs that are fully or partially funded by grants received from Federal, state, or county agency sources. Expenditures financed by grants are subject to audit by the appropriate grantor goverment'agency. If expenditures are disallowed due to non-compliance with grant program regulations, the City may be required to reimburse the grantor govermenvagency. As of September 30, 2019, the City! believes that disallowed expenditures discovered in subsequent audits, ifa any, will not have a material effect on any of the individual funds or the overall financial position of Effective October 17, 2016, the City contracted with the Polk County Sheriff to provide enhanced law enforcement services within the City through the fiscal year ended September 30, 2021. Under the agreement, the City. shall pay $99,3101 for base services for thei fiscal year ended September 30, 2019. The annual cost increases 2% per year over the term of the contract. The City paid $97,363 for the  the City.  year ended September 30, 2018.  47    REQUIRED SUPPLEMENTARY INFORMATION    POLK CITY, FLORIDA  BUDGETARY COMPARISON SCHEDULE- - GENERAL FUND (UNAUDITED)  FOR THE YEAR ENDED SEPTEMBER. 30, 2019  Actual Amounts (GAAP Basis)  Variance with Final Budget Positive (Negative)  Budgeted. Amounts Original  Final  RESOURCES (inflows): Taxes Licenses and permits Intergovernmental revenue Charges for services Fines and forfeitures Impact fees Other  1,331,632 $ 1,331,632 $ 1,456,664 $ 125,032  336,137 257,521 325,225 2,000 389,161 12,800 2,654,476 688,372 425,692 389,770 359,024 182,433 201,113 119,810 2,366,214 288,262 25,000 25,000 313,262 (313,262)  336,137 257,521 325,225 2,000 389,161 12,800 2,654,476 688,372: 425,692 389,770 359,024 182,433 201,113 119,810 2,366,214 288,262 25,000 25,000  251,157 330,394 361,125 11,167 157,647 38,760 2,606,914 622,146 445,961 361,052 331,290 148,045 25,095 119,810 2,053,399 553,515 25,000 25,000  (84,980) 72,873 35,900 9,167 (231,514) 25,960 (47,562) 66,226 (20,269) 28,718 27,734 34,388 176,018 312,815 265,253  Amounts available for appropriations CHARGES TO APPROPRIATIONS (outflows): General government Public safety Physical environment Transportation Culture/recreation Capital outlay Debt service  Total charges to appropriations EXCESS (DEFICIENCY) OF RESOURCES OVER CHARGES TO APPROPRIATIONS OTHER FINANCING SOUCES (USES); Transfer from enterprise fund Total other financing sources EXCESS (DEFICIENCY) OF RESOURCES OVER CHARGES TO APPROPRIATIONS AND OTHER FINANCING SOURCES Reserves carried to subsequent year NET CHANGE IN FUND BALANCE  313,262 $ 578,515 $ 265,253  (313,262)  48    POLKCITY; FLORIDA LastTen Fiscal Years  SCHEDULE. OF: THE. CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND. SCHEDULE OF CITY CONTRIBUTIONS-FLORIDA RETIREMENT SYSTEM PENSION PLAN:  Schedule of the City's Proportionate Share, of the Net Pension. Liability, Florida Retirement Systèm Pension, Plan (1)  2019  2018  2017  2016 *  2015  2014:  City's proportion of the FRS net pension liability (asset). City's proportionate share oft thél FRS net pension,l liability (asset), City's covered payroll (2): City's proportionate share oft the FRS net pension liability (asset) as a percèntage ofit its covered payroll!" FRS Plan fiduciàry net position as a: perçentage of the total pension liability  0.001965433% 0.001607192% 0.0012876069 0:001273210% 0.001355257% 0.001118460%. $ 676,868 $ 484,095 $ 380,865 $ 321,486 $: 175,050. $ 68,243 ) 804,096 $ 588,735 $. 415,532 $ 379,179 $. 380,883 $ 330,817  84.18% 82.61%  82,23% 84:26%  91.66% 83.89%  84.78% 84.88%  45.96%' 92.00%  20.63% 96.09%:  Notes:  (1)1 The amounts presented for each fiscaly year wE ere determined as of, or for the year, ended. June,30.  (2) Çovered payroll includes defined benefit plan actives, investment plan members and mémbers in DROPbecause total employer  contributions are determined on a uniformbasis. (blended rate):  Schedule of City Contributions Florida Retirement System Pension Plan (1)  2019.  2018  2017: 40,068.  2016 34,559  2015 32,616 $  2014 24,499  contractuallyn required FRS contribution ERS contributions in relation to the contractuallyrequired contribution: FRS contribution deficiency/excess) City's covered payroll (2) FRS contributions as ap percentage of covered payroll Notes:.  60,943 $ 45,804. $ 40,068 $ 34,559, $ 32,616. $ 24,499.  60,943 $ 45;804  804,096 $ 588,735 $ 415,532 $:. 379,179 $ 380,883 $ 330,817  7.58%  7.78%.  9.64%  9.11%  8.56%  7.41%  (1), The amounts presented fore eaçh fiscal year were determined for the year ended. June 30.  (2).Covered payroll includes defined' berefit plan actives, investment plan members and members in- DROP.,  These schedules are. 10-year schedules; however, the information in these schedules are not requiréd to be presented retroactively. Years, will be added to this schedule. in. future fiscal years until 10 years of.  information is available.  49:    POLKCITY, FLORIDA Last Ten Fiscal Years  SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND SCHEDULE OF CITY CONTRIBUTIONS -HEALTH INSURANCE SUBSIDY PENSION PLAN  Schedule of the City's Proportionate Share of the Net Pension Liability = Health Insurance Subsidy Pension Plan (1)  2019  2018  2017  2016  2015  2014  City's proportion oft thel HIS net pension liability (asset) City's proportionate share oft the! HIS netp pension liability (asset) City's covered payroll (2) City's proportionate share oft thel HISI net pension liability (asset)a as a percentage ofi its covered payroll HIS Planf fiduciary netp position asa a percentage oft thet total pension liability Notes:  0.002403726% 0.001802214% 0.001356602% 0.001297807% 0.001345924% 0.001092189% $ 268,953 $ 190,748 $ 145,054 $ 151,254 $ 137,263 $ 102,122 $ 804,096 $ 588,735 $ 415,532 $ 379,179 $ 380,883 $ 330,817  33.45% 2.63%  32.40% 2.15%  34.91% 1.64%  39.89% 0.97%  36.04% 0.50%.  30.87% 0.50%  (1)7 The amounts presented for each fiscal year were determined: as of, orf fort they yeare ended. June 30.  (2) Covered payroll includes defined benefit plan actives, investment planr members and mémbers in DROP because total employer  contributions are determined ona a uniform basis (blended rate).  Schedule of City Contributions- Health Insurance Subsidy Pension Plan (1)  2019  2018  2017  2016  2015  2014  Contractually required HIS contribution HIS contributions in relation to the contractually required contribution HIS contribution deficiency (excess) City's covered-employee payroll (2) HIS contributions as a percentage of covered-employee payroll  13,348 $ 9,773 $ 6,898 $ 6,294 $ 5,455 $ 3,741  13,348 $  9,773 $  6,898  6,294 5,455 3,741 $ $  $804,096 $588,735 $415,532 $ 379,179 $ 380,883 $ 330,817  1.66%  1.66%  1.66%  1.66%  1.43%  1.13%  Notes:  (1) The amounts presented for each fiscal year were determined as of June 30.  (2) Covered payroll. includes defined benefit plan actives, investment plan members and members in DROP.  These schedules are 10-year schedules; however, the information in these schedules are not required to be presented retroactively. Years will be added to this schedule in future fiscal years until 10 years of  information is available.  50    POLK CITY, FLORIDA  NOTES TO THE SCHEDULES. OF THE CITY'S PROPORTIONATE SHARE OF: THE NET PENSION LIABILITY AND SCHEDULE OF CITY CONTRIBUTIONS-FLORIDA RETIREMENT SYSTEM PENSION  PLAN AND HEALTH INSURANCE SUBSIDY PENSION PLAN:  1.. Schedule of Proportionate Share of the Net Pension Liability and Schedule. of Contributions-  Florida. Retirement System Pension. Plan: Changes of Assumptions:  a. The discount rate decrèased from 7.00 percent to 6.90 percent.,  b.- The long-term expected rate of return was decreased from 7.00 percent to. 6.90 pércent.. 2. Schèdule of Proportionate Share. of the Net Pénsion Liability and Schedule of Contributions-  Health Insurance. Subsidy Pension Plan. Changes of Assumptions: 3.50 percent.  a. The discount rate was decreased from 3.87 percent to 3.50 percent  b.., The municipal bond rate, used to determine total pension, liability. decreased from: 3.87 percent to Program Contribution Rates 1 The. Health Insurance Subsidy Pension Plan, (HIS) uses a pay-as-you- go"funding structure. As of June 30, 2019,and: 2018; accumulated HIS assets constituted. approximately five months of projected benefit payments. The ability of the current statutory contribution: raté to pay full. HIS benefits" is very/sensitive to near-term demographic experience, particularly: the volume and timing  ofr rètirements and the amount of payroll on. which the statutory rate is chargèd.  51    BICE SEREN  19  25    (This page intentionally left blank)    GOVERNMENT AUDITING SECTION    POLK CITY, FLORIDA  SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE  FOR THE YEAR ENDED SEPTEMBER 30, 2019  State Grants  State 40.024  State  Loan  Funding Source and Grant Program  CSFA# Grant Number Expenditures Proceeds  State of Florida Department of Economic Opportunity: Growth Management Implementation Total State of Florida Department of Economic Opportunity State of Florida Department of Environmental Protection: Clean' Water State Revolving Fund /E Effluent Disposal Small Community Wastewater Facility Grant Total State of Florida Department of Environmental Protection Total expenditures of State awards  PO329  $  30,000 $ 30,000 1,284,410 1,284,410 128,000 1,412,410 1,284,410 1,442,410 1,284,410  37.077 WW531402 37.075 WW531401  NOTES TO THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE NOTE A. - BASIS OF PRESENTATION: The accompanying Schedule of Expenditures of State Financial Assistance presents the State of Florida grant and loan activity of the Polk City, Florida in accordance with the requirements of Chapter 691-5, Rules of the Florida Department of Financial Services, Schedule of Expenditure of State Financial Assistance, Rules of the Florida Department of Financial Services; and Chapter 10.550, Rules oft the Florida Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the NOTE B - BASIS OF ACCOUNTING: The expenditures in the accompanying Schedule of Expenditures of State Financial Assistance are presented using the accrual basis of accounting. NOTE C-C CONTINGENCY: Grant monies received and disbursed by the City are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the City does not believe that such disallowances, if any, would have a material effect on the financial position oft the City. As of September 30, 2019, there were no material questioned or disallowed costs as a result of grant or loan audits in  basic financial statements.  process or completed.  52    BRYNJULESON  ACERTFIED/PUBLIC ACCOUNTANIS>  - :    INDEPENDENT AUDITOR'S REPORT ON ÇOMPLIANCE WITH REQUIREMENTS FOR EACH' MAJOR.S STATE PROJECT,AND ONI INTERNAL CONTROLOVER COMPLIANCE. REQUIRED BY CHAPTER 10.550, RULES OF: THE AUDITOR: GENERAL OF STATE OF FLORIDA.  Honorable Mayor and Members of the City. Commission Report on Compliance for Each Major State Project.  Polk. City, Florida-  We have audited the Polk" City, Florida's (the "City"). compliance with the types of compliance requirements dèscribed in the Department of Financial Services' State Projects Compliance Supplement that could have. direct: and material effect on each' of: the City's major state projects for the year ended Séptember 30, 2019. The City's major state projeçts: are: identified in the. summary of independent auditor's results section. of the accompanying Management is. responsible for compliance with Federal and State statutes, regulations, and the terms' and" Our responsibility is to express: an. opinion on compliance for each oft the City's major state projeçts based on our audit of the types of compliance requirements referred. to above., We conducted our audit of. compliance in accordance with auditing. standards generally accepted: in. thé United States. of America; the standards applicable to financial audits contained in' Goverment Auditing: Standards, issued: by the Comptroller General of the United States; and Chapter 10.550, Rules" of the Auditor General of the State of Florida. Those. standards and- Chapter. 10.550; Rules of the Auditors General of the Stâte of Florida, require that we plan ànd perform thé audit: to obtain reasonable assurance about whether noncompliance, with. the types of compliance requireménts referred to above that could have a direct and' material: effect on a major state project occurrèd. An audit. includes examining, on' 'a test basis; evidence about the City's compliance. with those requirements: and performing such other procedures as We believe that our audit provides a reasonable basis. for our opinion on compliance for each major state project. In our opinion, Polk City; Florida, complied; in all material respects, with the types of compliance requirements réferred to above that could have a direct and material effect on each of its major state projects for the year ended Management oft the City is rèsponsible for establishing and maintaining effective internal control: over compliance with the types of compliance requirements referred to above. In. planning and performing our audit of compliance; we: considered the City's internial control over. compliance: with. the types of requirements that could, have a dirèct and material effect on each major state, project to. determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on: compliance for each major state project and. to test and report on internal control over compliance in accordance with Chapter 10.550, Rules: of the Auditor General of the State of Florida, but not for the. purpose of expressing an opinion on the effectivèness of internal, control, over compliance. Accordingly, we do not. express an opinion, on the effectiveness of the City's internal. control over.  schedule: of findings and quéstioned costs: Management's Responsibility. Auditor's Responsibility  conditions. of its State financial assistance applicable to its State projects.,  we considered necessary in, the circumstances. Opinion on Each Major State Project  However; our audit does not provide al legal determination oft the City's compliance.  September 30, 2019.  Report on Internal Control over Compliance  compliancé.  307 Pontotoc Plaza : Auburndale, Florida 33823 i Phone 800.368.3959 a Fax. 863.583.0872.  Brynjulfson CPA, P.A.  www.mylondacpas.com  53    Honorable Mayor and Members oft the City Commission  Polk City, Florida  A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, int the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a state project on at timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with thet type of compliance requirement of a state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were noti identified. We did noti identify any deficiencies ini internal control over compliance thaty we consider tol be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose oft this report oni internal control over compliance is solely to describe the scope of our testing ofi internal control over compliance and the results of that testing based on the requirements of Chapter 10.550, Rules of the Auditor General oft the State of Florida. Accordingly, this report is not suitable for any other purpose.  governance.  Bryjllon CPA,P.A. Brynjulfson CPA, P.A. Auburndale, Florida June 23; 2020  54    POLK.CITY, FLORIDA: ASSISTANCE  SCHEDULE OF FINDINGS AND QUESTIONED: COSTS RELATING TO STATE FINANCIAL  Year Ended September 30, 2019  Section 1 Summary of Independent Auditor's. Results  Financial Statements. Type of Auditor's Report Issued: Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies). identified? State Financial Assistance  Unmodified Opinion.  x Yes. Yes' Yes  No X: None reported Noi  Noncompliance material to the financial statements reported?.  Type of Auditor's Report Issued on Compliance for Major State Projécts:  Unmodified Opinion  Internal control over major State projects: Material weakness(es). identified? Signifiçant deficiency(ies). identified?.  Yes Yes' Yes  X No Yes X None reported X No No.  Noncompliance material; to a) majorState projects réported? Any audit findings disclosed. that are. required toi be: reported- in accordance with Rule 10.557, Rules of the Auditor: General 37.077- State of Florida Department of Environmental Protection- Wastewater Treatment Facility Construction, Dollar threshold used to distinguish betwéen Type Aànd.Type Bi projects: $  Major State. Project(s):  432,723  Section I Summary Schèdule of Prior Audit Findings Related to State Financial Assistance  Thére were no: prior-yeàr audit findings related' to state financial assistance.  55    POLK CITY, FLORIDA ASSISTANCE (concluded) Year Ended September 30, 2019  SCHEDULE OF FINDINGS AND QUESTIONED COSTS RELATING TO STATE FINANCIAL  Section III- Current Year Findings Required to be Reported in Accordance with Government. Auditing  Standards  Finding 2019-01: Bank Reconciliations  Criteria: Good internal control requires the activity in the City's bank accounts tol be posted to the general ledger and. that bank statement reconciliations be performed on ai timely basis to afford management the Condition: The City's bank account activities were not being reconciled to the general ledger. balances in a timely manner. The September 2019 bank reconciliations were completed in March 2020 and as of the date Effect: Due to the lack of timely bank reconciliations, there was no assurance that the books and records Cause: The bank reconciliation process was delayed due. to issues caused by the accounting information system software conversion that took place during the fiscal year ended September 30, 2018 and Recommendation: We recommend the City take measures to ensure that the bank activity is reconciled to the general ledger and that this reconciliation is to be completed within thirty days after receipt of the monthly bank statements. Furthermore, we recommend that this reconciliation should be reviewed by the City Manager  opportunity to detect and correct errors on a timely basis.  of this report, the City has completed the bank reconciliations through February 2020.  oft the City were complete throughout the year.  management has not brought the reconciliations current as of the date of this report.  when complete.  56    ACERTIFIED   BRXNJULFSON:  PUBLIC ACCOUNTANTS)  :  :  INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANÇE, AND OTHER MATTERS BASED ON AN AUDIT. OF: FINANCIAL STATEMENTS PERFORMED: IN ACCORDANCE WTH: GOVERMMENTAUDTAUDITINGSTANDARDS  Honorable Mayor and Members of the City Commission  Polk City, Florida  We. have. audited, in accordance with the. auditing standards generally: açcepted in the United" States of America and- the standards appliçable to financial audits contained in: Government. Auditing Standards. issued by. the: Comptroller General. of thei United States; the financial statements. of the governmental activities, the business-type. activities and each major furdi of Polk City, Florida as of and fort the year ended September 30, 2019, and the relâted: notes to the financial statements; which çollectively comprise. Polk. City, Florida's basic financial statements, and have issued our report thereon dated June 23, 2020. Inp planning and performing our audit of the financial statements, we considered Polk: City, Florida's' internal control over financial reporting (internal control). to determine. the audit procèdures that are. appropriate in. the circumstançes for the purpose of expressing our opinions on the financial statements, but, not for the purpose. of expressing an opinion on the effectiveness of Polk City, Florida's internal control. Accordingly; we do, note express àn; opinion on. the effectiveness of Polk City, Florida's intérnal control. A déficiency ini internal control exists when the design or operation ofa a control does not allow management ore emplayees; 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 defiçiency, or a combination of deficienicies, in internal, control, such that there. is a reasonable possibility. that a material: misstatement of the entity's financial statements will not be prèvented: or detected. and correçtèed on a timely basis. A significant deficiency: is a deficiency, or a combination. of deficiençies, 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. çontrol that. might be material weaknesses. or significant. deficiencies and therefore, material weaknèsses or significant deficiencies may exist. that: have not. been identified, We. did: identify. a deficiency in: internal, control, described: jn the. accompanying, schedule of findings: as item 2019-01, that we considér.tot be a material. weakness.  Internal Control. Over Financial Reporting  Compliance and Other Matters  As) part of obtaining reasonable assurance about whether Polk: City, Florida's financial statements are free., from material. misstatement, we performed: tests. of its, compliânce with. certain provisions.: of laws, regulations, contracts, and grant agreements; noncompliance with. which could, have a direct and' material effect on. the determination of financial statement amounts. However; proyiding. an opinion on compliance with those provisions was not an objective, of our audit, anda accordingly, we. do note éxpress such an opinion. The, results of our. tests. disclosed. no instances of nonçompliance or other matters that àre required to be  reported. under Government. Auditing Standards.  *  307. Pontotoc Plaza : Auburndale, Florida 33823 a Phone 800.368.3959 . Fax 863.583.0872  Brynjulfson ÇPA, P.A.  wwmylondacpas.com  57    Honorable Mayor and Members of the City Commission  Polk City, Florida  Polk City's Response to Findings  Polk City, Florida's response to the findings identified in our audit is described in the accompanying letter ofr managements response. Polk City's response was not subjected to the auditing procedures applied in  the audit of the financial statements and, accordingly, we express no opinion on it.  Purpose of this Report  The purpose oft this report is solely to describe the scope of our testing ofi internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,  this communication is not suitable for any other purpose. Brynjurbony CPA,P.A.  Brynjulfson CPA, P.A. Auburndale, Florida June 23, 2020  58    CERTIFIED  BRYNULFSON  PUBLIC ACCOUNTANTS:  *  INDEPENDENT ACÇOUNTANTS REPORT ON: COMPLIANCE: WTH SECTION218.415, FLORIDA STATUTES  Honorable, Mayor and Members of the City. Commission  Polk City, Florida  We have. examined. Polk City, Florida's compliance with Section 218.415, Florida Statutes for the year ended September 30, 2019: Management is. résponsible for Polk City, Florida's compliançe with, those specified requirements. Our: responsibility is: to express. an opinion. on. Polk City, Florida's compliance based- on, our: Our examination was conducted in accordance: with attestation: standards established: by the! American Instituté. of Certified' Public: Accountants. Those. standards' rèquired that we plan and' perform the examination to. obtain reasonable assurance, about. whether Polk City, Florida complied; in, all matérial respects, with the specifièd requiremènts: referençed above.. An examination involves performing: procedures to obtain evidence. about whether Polk: City, Florida: çomplied. with the specified: requiréments The naturé; timing. and, extent of the proçedures selected. depend on our. judgment, including an assessment oft the risks of, material noncompliance, whether due to fraud or error. We believe that the evidencé we. obtained is sufficient and appropriate to: provide a reasonable basis Our examination does not provide. a legal detérmination of Polk.City, Florida's çompliance with. the specified Inc our opinion, Polk City, Florida complied, in all material respects, with the aforementioned requirements of Section  ekamination.  foro our opinion. requirements.  218.415, Florida: Statutes for the year ended September 30, 2019.;  Bryjubony CPAPA Brynjulfson CPA, P.A Auburndale, Florida June 23; 2020  4:  307: Pontotoc Plaza . Auburndale, Florida 33823 - Phone 800.368.3959 - Fax 863.583.0872:  Brynjulfson CPA, P.A.  www.mylordacpas.com  59    ACERTIFIED  BRXNJULFSON:  PUBLIC ACCOUNTANIS)  MANAGEMENT LETTER  Honorable Mayor and Members of the City Commission Report on the Financial Statements  Polk City, Florida  We have audited the financial statements of Polk City, Florida as of and for the year ended September 30, 2019,  and have issued our report thereon dated June 23, 2020.  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 oft the United States and Chapter 10.550, Rules oft the Auditor General. We have issued the following reports and schedule in connection with our audit.  Other Reporting Requirements  Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and. Other Matters Based on an Audit oft the Financial Statements Performed in Accordance with Government Auditing Independent Auditor's Report on Compliance with Requirements for Each Major State Project and on Internal Control Over Compliance Required by Chapter 10.550, Rules of the Auditor General. Schedule of Findings and Questioned Costs Related to State Financial Assistance.  Standards.  Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes conducted in accordance with. AICPA Professional Standàrds, AT-C Section 315, regarding compliance requirements of Disclosures in these. reports and schedule, which are dated June 23, 2020, should be considered in  Chapter 10.550, Rules of the Auditor General. conjunction with this management letter.  Prior Audit Findings  Section 10.554(1)0)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions hâve been taken to address findings and recommendations made in the preceding financial audit  report except for the finding noted below.  Tabulation of Uncorrected Audit Findings  Current Year Finding # 2019-01  2017-18 FY Finding # 18-01  2016-17 FY Finding # na  307 Pontotoc Plaza : Auburndale, Florida 33823 : Phone 800.368.3959 . Fax 863.583.0872  Brynjulfson CPA, P.A.  www.mylondcpas.com  60    Honorable Mayor and Members oft the City. Commission  Polk: City; Florida  Official Title and Legal Authority.  Section 10.554(1)0)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. For the legal authority of. Polk City; Florida, see footnote  A of the summary of significant açcounting poliçies int the notes to financial statements.  Financial Condition and Management  Section, 10,554(1)(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 Polk City, Florida has met one. or more of. the conditions déscribed- in; Section 218.503(1), Florida Statutes, and identification oft the specific condition(s) met. Inc connection with our audit of the financial statements of Polk City, Florida, we determined that Polk City, Florida, Pursuant to Sections. 10.554(1)(0)5.b and 10.556(8), Rules of the Auditor General, we: applied financial condition! assessment procedures for Polk. City, Florida. It is. management's responsibility to: monitor Polk" City, Florida's financial condition, and. our. financial. condition assessment was based in. part: on representations. made by Section 10.554(1)0)2., Rules of the Auditor General, requires that: we communicate any recommendations. to improve finanicial managemènt. In connection with our audit, wei did, not have any such recormendations.  did not meet any oft the specified conditions described in Section 218.503(1), Florida Statutes;  management and the review. of financial information provided by. same,  Additional Matters'  Section. 10.554(1)()3., Rules of the Auditor General, réquires. us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that.is léss. thàn, 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 oft the Florida Senate and. the Florida House of Representatives, the Florida Auditor General, Federal and other granting agençies, members oft the City Commission, and applicable management, and: is not intended tol be  and should not be used by anyone other than these speçified parties.  Br.CPAPA Brynjulfson CPA, P,A. Auburndale; Florida June. 23, 2020 ::  61    BICE SERENT  19  25  E   (This page intentionally left blank)    OTHER INFORMATION    Polk City 123 Broadway Blvd Polk City, FL33868 Phone: 863.984.1375 Fax: 863.984.1984  25  CITY.EL o  POLK CITY IMPACT FEE. AFFIDAVIT  BEFORE ME, the undersigned authority, personally appeared Joanna Knowles, who being duly sworn,  deposes and says on oath that:  1. 2. 3.  Iam the Finance Administrator of Polk City which is a local governmental entity of the State of Polk City adopted Ordinance No. 1142, 1,02-27-2007 implementing an impact fee; and Polk City has complied and, as of the date of this Affidavit, remains in compliance with Section  Florida;  163.31801, Florida Statutes.  FURTHER. AFFIANT SAYETH  Administrator, Polk City  STATE OF FLORIDA COUNTY OFI POLK    SWORN TO. AND SUBSCRIBED before me dia3 aye fyn 2020.  NOTARYI PLBLICN  Print Name Potrise RSaekson  Personally known  or produced identification  Type ofidentification produced: My Commission Expires:  PATHICAE JALKSON. Notary Commission Public Slate of Florida My Comm. Expires # G6 Sep 026969 Bondedt througha Nationaln NolalyAssn 29. 2020  62    POLK CITY. 123 Broadway Blvd SE- Polk City, Florida 33868 Telephone 863-984-1375 Fax 863-984-2334  June 22, 2020  Honorable Mayor, City Commissioners  Polk City Polk City FL 33868  RE: Management Letter dated. June 22, 2020 Fisçal Year 2019 Audit Findings : Corrective Actions  Finding 19-01: Bank Reconciliations  We concur with the Auditor's recommendation and have implemented the measures to reconcile the bank statements to the general ledgerwithin 30 days, after receipt of the: bank statements. The issues resulting, from the accounting information system software. The current part-time position of accounting clerk: was made a full-time' position beginning with Fiscal Year 2019-2020.. The Finance Department has resolved. the. issues with the software, and. are on track and assures. all bank statements for Fiscal  conversion has also. been addressed: and corrected.  Year 2020 will be completed on time  We continue to strive to provide the highest level of financial services and reporting to  Polk City,  Resperatiulysubmited. PatriclaR-Jeckson, A City Manager    Knowles Finance Administrator  E  63