Government Finance Officers Association

Certificate of Achievement for Excellence

in Financial Reporting

Presented to

City of Boca Raton

Florida

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

September 30, 2014

Executive Director/CEO

COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE

CITY OF BOCA RATON, FLORIDA FOR THE FISCAL YEAR ENDED

September 30, 2015

Prepared by the Financial Services Department

Linda C. Davidson, C.P.A., C.G.F.O., Financial Services Director Patricia White, C.P.A., Accounting Manager

Carol Himes, C.G.F.O., Treasurer Sharon McGuire, C.P.A., C.G.F.O., Office of Management and Budget Director

Christine DiVito, Senior Accountant Cormac Conahan, Accountant

Victoria Guinn, Accountant Nicholas Pontiroli-Kelly, Accountant Leslie Harmon, Grants Administrator Ella Moore-Poitier, Budget Analyst Jean Bonds, Office Supervisor II

ABOUT THE COVER:

Founded  in 1984, Gumbo Limbo Nature Center  is a unique cooperative project of the City of Boca 

Raton, Greater Boca Raton Beach and Park District, Florida Atlantic University (FAU), and Friends of 

Gumbo  Limbo.    Each  year, more  than  100,000  visitors  receive  valuable  environmental  education 

while enjoying respite from the city bustle. 

Gumbo  Limbo  Nature  Center  conducts  school  programs  that  instruct more  than  6,000  students 

annually, which meet  the Sunshine State Standards Requirement  in science education.   Additional 

public programs for adults and families see more than 13,000 participants each year. 

The Center also participates in Sea Turtle Conservation which monitors over 800 nests per year and rescues more than 9,000 stranded hatchlings each season.  The FAU lab hosted on‐site furthers these same  conservation efforts by  researching  sea  turtle behavior, psychology, and ecology, as well as creating practical applications in the conservation of sea turtles and other marine life.  The City of Boca Raton  is proud to partner with Gumbo Limbo Nature Center  in all of  its efforts to provide valuable education and  research  to  the  further benefit of  the citizens and ecological well‐being of Boca Raton.   

PHOTO CREDIT: Turtle Photo by Ben Hicks © Gumbo Limbo Nature Center

All Other Photos © City of Boca Raton DESIGN CREDIT: Nicholas Pontiroli-Kelly, Accountant, City of Boca Raton

CITY OF BOCA RATON, FLORIDA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

__________

For the fiscal year ended September 30, 2015 TABLE OF CONTENTS

Page #INTRODUCTORY SECTION (Unaudited) Letter of Transmittal i List of Principal Officials x Organization Chart xi

FINANCIAL SECTION Independent Auditors' Report Management’s Discussion and Analysis (Required Supplemental Information) 1 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 19 Statement of Activities 21 Fund Financial Statements: Balance Sheet – Governmental Funds 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 24 Statement of Revenues, Expenditures, and Changes in Fund Balances, Governmental Funds 25 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 27 Statement of Net Position, Proprietary Funds 28 Statement of Revenues, Expenses and Changes in Net Position, Proprietary Funds 30 Statement of Cash Flows, Proprietary Funds 31 Statement of Fiduciary Net Position, Pension Trust Funds 33 Statement of Changes in Fiduciary Net Position, Pension Trust Funds 34 Notes to Financial Statements 35 Required Supplementary Information: General Employees' Pension Plan:

Schedule of Changes in Net Pension Liability and Related Ratios 92 Schedule of Contributions 93

Police and Firefighters' Retirement System: Schedule of Changes in Net Pension Liability and Related Ratios 94 Schedule of Contributions 95

Executive Employees' Retirement Plan: Schedule of Changes in Net Pension Liability and Related Ratios 96 Schedule of Contributions 97

Other Post Employment Benefits Schedule of Funding Progress 98 Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual, General Fund 99 Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual, Community Development Agency – Mizner Park Revenue Fund 102 Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual, Beach and Park Operations Fund 103 Notes to Required Supplementary Information 104 Combining and Individual Fund Statements and Schedules (Supplementary Information): Major Governmental Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual, Five-Year Capital Improvement Fund 105 Non-Major Governmental Funds: Combining Balance Sheet 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 107

Non-Major Special Revenue Funds: Combining Balance Sheet 108

Combining Statement of Revenues, Expenditures and Changes in Fund Balances 110 Community Development Block Grant Program Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 112 Housing Assistance Trust Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 113 Law Enforcement Trust Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 114 Transportation Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 115 Right-of-Way Beautification Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 116 Mizner Park Lock Box Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 117 Community Redevelopment Agency Operating Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 118 Economic Development Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 119 Grant Funds, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 120 Perpetual Care Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 121 Non-Major Debt Service Funds: Combining Balance Sheet 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 123 City Debt Service Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 124 Community Redevelopment Agency Debt Service Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 125 Non-Major Capital Projects Funds: Combining Balance Sheet 126 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 128 Right-of-Way Acquisition Program Fund, Schedule of Revenues, Expenditures and Changes In Fund Balance, Budget and Actual 130 Park Land Dedication Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 131 Downtown Land Dedication Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 132 Downtown Infrastructure Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 133 Library Improvements Fund, Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual 134 Non-Major Enterprise Funds: Combining Statement of Net Position 135 Combining Statement of Revenues, Expenses and Changes in Net Position 136 Combining Statement of Cash Flows 137 Internal Service Funds: Combining Statement of Net Position 139 Combining Statement of Revenues, Expenses and Changes in Net Position 140 Combining Statement of Cash Flows 141 Fiduciary Funds: Combining Statement of Fiduciary Net Position 143 Combining Statement of Changes in Fiduciary Net Position 144

STATISTICAL SECTION (Unaudited) Financial Trends Net Position by Component - Last Ten Fiscal Years 145 Changes in Net Position - Last Ten Fiscal Years 147 Fund Balances of Governmental Funds - Last Ten Fiscal Years 149 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 151 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Years 153 Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 155 Principal Property Taxpayers - For the Current Calendar Year and Nine Years Ago 156 Property Tax Levies and Collections - Last Ten Fiscal Years 157 Debt Capacity Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 158 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 160 Direct and Overlapping Governmental Activities Debt 161 Pledged-Revenue Coverage for Water and Sewer Revenue Bonds - Last Ten Fiscal Years 162 Pledged-Revenue Coverage for Special Assessment Bonds - Last Ten Fiscal Years 163 Pledged-Revenue Coverage for Tax Increment Revenue Refunding Bonds - Last Ten Fiscal Years 164 Pledged-Revenue Coverage for All Non Ad Valorem Revenue Bonds and Loans Payable - Last Ten Fiscal Years 165 Demographic/Economic Demographic and Economic Statistics - Last Ten Fiscal Years 166 Principal Employers - For the Current Calendar Year and Nine Years Ago 167 Operating Information Full-Time Employees by Function - Last Ten Fiscal Years 168 Operating Indicators by Function/Program - Last Ten Fiscal Years 169 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 171

OTHER REPORTS AND SCHEDULES Compliance Reports: Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 172 Independent Auditors’ Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 174 Schedule of Expenditures of Federal Awards 177 Notes to Schedule of Expenditures of Federal Awards 178 Schedule of Findings and Questioned Costs 179 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 181 Independent Accountants’ Report on Compliance Pursuant to Section 218.415 Florida Statutes 184

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CITY HALL • 201 WEST PALMETTO PARK ROAD • BOCA RATON, FLORIDA 33432-3795 • PHONE (561) 393-7729

(FOR HEARING IMPAIRED) TDD: (561) 367-7046 SUNCOM: (561) 922-7700

INTERNET: www.ci.boca-raton.fl.us

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March 30, 2016 To The Honorable Mayor, Members of the City Council, Citizens of the City of Boca Raton, Florida: We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of Boca Raton, Florida (the City), for the fiscal year ended September 30, 2015. This report provides the City Council, City staff, our citizens, our bondholders and other interested parties with detailed information concerning the financial condition and activities of the City government. State law requires that all general-purpose local governments annually publish a complete set of financial statements within nine months of the close of each fiscal year. The financial statements are presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards and government auditing standards by an independent auditing firm. We believe that this report complies with these requirements and continues to present the City's strong tradition of full financial disclosure. This philosophy is reflected by the informative financial analysis provided by the City's Financial Services Department and the exhibits and statistical tables included herein. The CAFR's role is to assist in making economic, social and political decisions and to assist in assessing accountability to the citizenry by: . Comparing actual financial results with the legally adopted budget, where appropriate; . Assessing financial condition and results of operations; . Assisting in determining compliance with finance related laws, rules and regulations;

and . Assisting in evaluating the efficiency and effectiveness of City operations Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the City. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to present fairly the financial position and results of operations of the City; and that all disclosures necessary to enable the reader to gain an understanding of the City's financial activity have been included. Marcum LLP, independent auditors, has issued unmodified opinions on the City of Boca Raton’s financial statements for the fiscal year ended September 30, 2015. The independent auditors’ report is located at the front of the financial section of this report.

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The City’s Financial Statements have been prepared using the reporting model in accordance with Governmental Accounting Standard Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis (MD&A). MD&A immediately follows the independent auditors’ report and provides a narrative introduction, overview and analysis of the basic financial statements. MD&A compliments the letter of transmittal and should be read in conjunction with it. THE CITY OF BOCA RATON Profile Boca Raton is a full service city located on the south eastern coastline of Palm Beach County, Florida. The City derives its governmental authority from a charter granted by the Legislature of the State of Florida. In 1965, the Council-Manager form of government replaced the Commissioner-Manager system in Boca Raton. Four Council Members and a Mayor are elected at large on a non-partisan basis for three-year terms. The City Council appoints the City Manager who is the Chief Administrative Officer of the City and directs the business of the City and its various departments. The City Council determines policy, adopts legislation, approves the City's budget, sets taxes and fees, and appoints the City Attorney and members of various boards and committees. Services Provided The City provides a full range of municipal services. The public safety program includes police, fire protection and rescue services; the City’s extensive recreation program includes beaches, a pool, golf courses, libraries, tennis courts, neighborhood parks, and community centers; the Municipal Services Department provides essential traffic, facility and street maintenance, solid waste collection and stormwater services as well as other technical assistance to the City; the Utility Services Department provides water and sewer services. The City's Development Services Department provides planning, zoning and building permit and inspection services and administers the City's Community Development Block Grants. The City also provides general administrative services. Reporting Entity This report includes all of the funds of the City. In addition to general government activities, the Community Redevelopment Agency (CRA) is included in the reporting entity. However, the Greater Boca Raton Beach and Park District, the Boca Raton Housing Authority and the Boca Raton Airport Authority do not meet the established criteria for inclusion in the reporting entity and, accordingly, are not included in this report.

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Accounting and Internal Control Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit As a recipient of federal, state and county financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management. The City is required to undergo an annual single audit performed under the provisions of the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General, State of Florida. The information related to the Single Audit, including the schedule of expenditure of federal awards, schedule of findings and questioned costs, and independent auditors' reports on the internal control over financial reporting and internal controls over compliance with applicable laws and regulations are included in separate reports. These reports disclosed no instances of material weaknesses in internal control over financial reporting or over compliance, or significant violations of applicable laws and regulations. Budgetary Controls In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City's governing body. In accordance with state laws the Approved Budget is posted on the City’s website within 30 days of adoption. Activities of the General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department (by fund) level. The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. However, encumbrances generally are reappropriated as part of the following year's budget adoption. All expenditures for other than personal services are controlled by a procurement system, which encumbers purchase orders against budgets prior to issuance to the vendors. Purchase orders are not issued until appropriations are made available. Administrative budget transfers may occur upon approval of the City Manager as long as the department budget within a fund is not increased. Budget amendments are submitted quarterly to Council for their consideration and in accordance with state law are posted to the City’s website within five days of adoption.

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LOCAL ECONOMY The City of Boca Raton provides a unique environment for business – a strong business environment, with economic resources and a well-educated and talented workforce, all within a community known for its high quality of life. Boca Raton is a rich blend of corporate and regional headquarters, small businesses, and innovative start-up companies. There are economic opportunities for all types of companies and businesses. Boca Raton has grown from a small agricultural community to a large regional employment center with one of the largest business concentrations in South Florida. In fact, about half of all of the large office buildings in Palm Beach County are located in Boca Raton, and a number of national and international corporations call Boca Raton home. Boca Raton has easy access to road, rail, and air transportation. It is becoming a hub for technology, medical, financial, security and educational businesses, although many other business categories are represented in the City. Boca Raton continues to face competition for new and existing national and regional corporate headquarters. In order to create and retain jobs in the City, the City Council again identified economic development strategy and funding as one of the top priorities for Fiscal Year 2015-16. The City continues to work with economic development agencies such as the State of Florida Department of Economy Opportunities, Palm Beach County, and the Palm Beach County Business Development Board to attract businesses to the City and to retain and promote the growth of existing businesses in the City. The City continued to develop a strong Economic Development Incentive Program in FY 2015. In FY 2015 the City created and funded an Economic Development Manager position to oversee and coordinate its efforts. One of the primary components in the City’s Economic Development Incentive Policy is to provide economic development incentives for companies seeking to relocate to the City or to expand their existing business within the City. Based on the criteria listed in the policy, including job creation and/or retention, capital investment and job salaries, the City can provide incentives through a number of different methods including providing the local match for state economic development programs, making grants and/or loans, and subsidizing rents and leases. It also can provide non-financial incentives such as expedited permitting. Through its Economic Development Incentive Policy, the City has created 4,021 new jobs and retained an additional 4,343 existing jobs since April 2010 as a result of committing $4.314 million in incentives. The incentives provided by the City also leveraged $12.1 million of State of Florida incentives and $2 million of Palm Beach County incentives. Major business centers within the City include the Park at Broken Sound, formerly known as the Arvida Park of Commerce (APOC), which has over 5 million square feet of office space on its 850 acres, the Florida Atlantic University (FAU) Research Park, which is currently home to 18 companies, and the Technology Business Incubator located at the FAU Research Park, which currently hosts 24 technology companies in the early stages of development in various industries such as pharmaceutical development, software and app development, and advanced electrical engineering applications.

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Education continues to play an important role in the Boca Raton area. The City is the location of Florida Atlantic University (FAU), Lynn University, and the southern campus of Palm Beach State College. The combined enrollment of these institutions is over 25,000 students, and having these educational institutions in the City adds to the stability of the City’s economic base. Each educational institution continues to expand their educational and related facilities. FAU received a $3.5 million grant for computer science and engineering facilities, and the nursing and business colleges enhanced their facilities, as did the recently created medical school. In addition, FAU completed construction on its new dormitory facilities. Lynn University is also continuing its development and expansion and now enrolls more than 2,000 students from 90 countries and 45 states and territories. Lynn University has also created a new master plan for its campus and has completed construction of a new International Business Center and Central Energy Plant. Palm Beach State College has expanded its programs to include courses in alternative energy and environmental sustainability.

On December 22, 2015, the City of Boca Raton hosted the Marmot Boca Raton Bowl at the FAU stadium. In its second year, this ESPN college bowl game was able to secure Marmot as

a title sponsor and hosted a week of activities for Temple University and The University of Toledo leading up to game day. By almost all measures, the event was a huge success for Boca Raton and Palm Beach County. It is estimated that the bowl game had a total economic impact of $10.4 million, including 7,680 room nights in area lodging and thousands of people patronizing local businesses. There were 25,908 attendees at the Bowl Game and 1.79 million viewers of the live broadcast of the Marmot Boca Raton Bowl game on ESPN.

Additionally, all of the public schools in the Boca Raton have received an “A” rating, the highest rating possible, by the State of Florida, and there are a number of nationally known private schools operating within the City. Boca Raton also remains a regional shopping and dining location. The Town Center at Boca Raton has continued to expand and is considered the premier regional mall in South Florida. Other high-quality destination shopping and dining areas in the City include Boca Center, and the downtown areas of Mizner Park and Royal Palm Place.

MAJOR INITIATIVES For the Year With goals and priorities of a financially sound City government, world class municipal services, vibrant and sustainable city and a strong partnership with community, the City continues to demonstrate its ability to be one of the most financially secure local governments in Florida. As part of its strategic planning efforts a financial summit was held to ensure long term sustainability of the city.

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The City’s taxable value is $18.223 billion, making the City’s taxable value the highest of any municipality in Palm Beach County and the fourth highest in the three South Florida counties behind Miami, Miami Beach and Ft. Lauderdale. The Boca Raton Community Redevelopment Agency’s taxable value saw an increase of 6.7% for the year, the second consecutive year over growth since 2008. The City of Boca Raton’s taxable property values increased 5.75% for fiscal year 2014-15. This is the third year of growth after four prior years of declines in property values. The City’s rich cultural community offers educational opportunities for local families and diverse outlets for sports and entertainment, contributing greatly to the city’s quality of life—as well as its economy. The city’s cultural programming distinguishes Boca Raton from other coastal cities, by offering unique, world-class festivals and experiences for tourists and residents.

Within the City are a number of excellent cultural facilities and venues, including the Boca Raton Historical Society and Museum, The Boca Raton Museum of Art, the Mizner Park Amphitheater, the Boca Raton Children’s Museum and the Mizner Park Cultural Arts Center, not to mention a number of wonderful facilities at FAU and Lynn University. Old Town Hall, operated by the Boca Raton Historical Society, serves as the Boca Raton History Museum and Welcome Center. The Mizner Park Amphitheater, owned and operated by the City of Boca Raton since 2010, welcomes over 150,000 visitors a year. Through a variety of programming that includes city sponsored events, community fundraisers, concerts and festivals, the popular venue is a cherished part of the Downtown entertainment scene.

City sponsored events are free for the community and have become beloved traditions for audiences of all ages. The amphitheater hosts and presents concerts for a variety of holiday events as well as a full line up of free concerts and movies each summer. In addition to city sponsored events, the amphitheater is home to many community fundraising events throughout the year including the American Cancer Society’s Making Strides walk which bring over 10,000 people to Downtown Boca, the Juvenile Diabetes Research Foundation Walk, and the Alzheimer’s Association Walk. Hosting community rentals increases the level of civic engagement and promotes a sense of community. The amphitheater’s location and reputation provide awareness for the cause, helping to create a well attended successful event. Most of these events include the participation of youth and students in our community, including performers and volunteers from local middle and high schools, NJROTC, fire explorers and band students.

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Co- productions and collaborations with community partners, media partners, organizations and educational institutions have created signature events, drawing large crowds and national awareness to Boca Raton. Festival of the Arts BOCA, a weeklong cultural experience that includes national and international artists, authors and performances celebrated its 10th year in 2015. The annual Boca Sunshine Music and Blues Festival brings fans from the north of Boca Raton each January to stay and play. These large scale events and festivals generate positive marketing exposure for the venue and the City. Concerts featuring popular national acts like John Legend, Train, and the Counting Crows keep the venue relevant in the industry and provide quality entertainment for residents and visitors. Local restaurants see a direct benefit on concert evenings, offering pre or post concert specials to take advantage of the thousands of attendees on site. Fans that travel to see their favorite bands and artists often choose a South Florida location during the season, staying in local hotels and contributing to the bed tax, which ultimately returns to the community by funding local cultural grants.

FOR THE FUTURE

The City recognizes that a successful downtown is a critical component for Boca Raton. To be successful, downtown Boca Raton must develop a sense of place, the public and private sector must work together with a common goal, public funds need to be wisely invested and new development should provide pedestrian connections to the overall downtown. Through the recent economic downturn, Boca Raton has maintained its strong financial position through prudent long-term financial planning and fiscal actions to reduce or contain fixed costs. For the 2016 fiscal year, the City approved the same operating tax rate of $3.4216 per $1,000. The City’s 2015 debt service tax rate decreased 4.48% to $0.2583 per $1,000 based upon voter approved bond issues. The net result was that there was a slight decrease in the total tax rate.

The City continues to evaluate and implement user fees as part of its efforts for long term sustainability. In the 2016 budget, the sanitation fee remained the same at $16.90 monthly for single family residents and the monthly fee for multi-family residential units to cover the cost to provide sanitation services has increased to $10.25. The provision of solid waste services is accounted for as an enterprise fund. Also, in the 2016 operating budget, the fire assessment fee remained the same at $85 per household to recover a portion of the operational costs of the City’s fire services. In the 2016 Session, the Florida Legislature is considering a statewide tax reduction plan as well as pushing additional costs down to local governments as unfunded mandates. The City is closely monitoring these proposals and their potential impacts and limitations to Florida municipalities. The consequences of a combination of several of the proposals being considered could have a significant impact on the City’s ability to maintain and/or improve services to residents.

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LONG RANGE FINANCIAL PLANNING The City Council has adopted financial policies for operating, capital and debt management. Management has made every effort to comply with these policies and we believe that we are in compliance with the adopted policies. A long-range financial plan is presented to the City Council annually in the spring. This document forecasts the General Fund and several other fund operations for the next five years and is used to guide the development of the annual operating budget and to achieve the long term goal of a financially sound city. The City has also recognized the long-term financial cost implications of its pension benefits and in fiscal year 2008 adjusted benefits prospectively for new general employee hires, then in fiscal year 2010, adjusted benefits prospectively for executive employees. In fiscal year 2014, the City created a Retirement Sustainability Fund and transferred $15 million from the General Fund. The City hired an outside actuary to perform a review of the Police Officers and Firefighters’ Retirement System and a pension reform report was issued which included recommended changes to the pension plan for long-term sustainability. In April 2015, the City entered into new collective bargaining agreements that included changes to the pension plan relating to pension reform and future savings. The City continues to monitor all of its pension costs for sustainability and to provide cost containment so as not to shift the costs to future taxpayers. The Capital Improvements Program (CIP) is prepared and presented to the City Council as part of the annual budget process. The projects represent the City's plan for infrastructure improvement and major equipment acquisition for the next six years. The approved CIP also includes funding for the Central Beach Renourishment project along with the design cost for the Hillsboro/El Rio Park along with renovations at James A. Rutherford and South Beach Parks.

OTHER INFORMATION Independent Audit The City Charter, Article 3, Section II, requires an annual audit of the City's financial statements by independent accountants selected by the City Council. This requirement has been complied with and the independent auditors' report is included in the financial section of this report. Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Boca Raton, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2014. This was the 35th consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

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A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Award for Distinguished Budget The City received the GFOA Award for the Distinguished Budget Presentation for the City budget for the fiscal year ended September 30, 2015. It was the 33rd consecutive year the City received the award for the document, which serves as the City's primary fiscal policy document.

ACKNOWLEDGEMENTS The completion and issuance of this report could not have been accomplished without the dedicated efforts of the entire staff of the Financial Services Department. Special thanks must be given to Patricia White, Carol Himes, Christine DiVito, Cormac Conahan, Victoria Guinn and Nicholas Pontiroli-Kelly, for their dedication in the creation and compilation of this document. Our appreciation is also extended to Jean Bonds, Shannon Crouch, Stephen Timberlake, George Brown, Sharon McGuire, Leslie Harmon and Ella Moore-Poitier for providing support in the preparation of this report. Credit must also be given to the City Council and City Management for their commitment to support in their sound fiscal management practices with emphasis on long-term financial stability. We believe that this report clearly illustrates the strong financial posture of the City of Boca Raton and we wish to take this opportunity to thank you and the citizens of Boca Raton for the vital role you have historically played in enabling the City to achieve and maintain this high degree of fiscal responsibility.

Respectfully yours,

Linda C. Davidson, C.P.A., C.G.F.O. Financial Services Director

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LIST OF PRINCIPAL OFFICIALS September 30, 2015

Mayor .............................................................................................................................................. Susan Haynie Deputy Mayor ........................................................................................................................ Robert S. Weinroth Council Member ...................................................................................................................... Michael Mullaugh Council Member .......................................................................................................................... Jeremy Rodgers Council Member ................................................................................................................................ Scott Singer City Manager .................................................................................................................................... Leif J. Ahnell Deputy City Manager ............................................................................................................... ..George S. Brown Assistant City Manager ............................................................................................................. Michael J. Woika City Attorney ........................................................................................................................... Diana Grub Frieser City Clerk ......................................................................................................................................... Susan Saxton Development Services Director ................................................................................................Theophilus Harris Financial Services Director .................................................................................................... Linda C. Davidson Fire/Rescue Services Chief ....................................................................................................... Thomas R. Wood Recreation Services Director ................................................................................................... Mickey A. Gomez Police Services Chief .................................................................................................................... Dan Alexander Utility Services Director ................................................................................................................. Chris Helfrich Municipal Services Director ........................................................................................................... Daniel Grippo Office of Management and Budget Director .............................................................................. Sharon McGuire Information Technology Director ................................................................................................. Sandra Stevens Human Resources Director ..................................................................................................... Mark Buckingham

CITY OF BOCA RATON ORGANIZATIONAL STRUCTURE

RESIDENTS OFBOCA RATON

CommunityRedevelopment Agency

CITY COUNCIL

* Airport Authority* General Employees’ Pension* Police & Firefighters’ Pension* Exec. Employees’ Pension* Boca Raton Housing Authority

Independent Agencies* Members appointed

partly or entirely by City Council

CITY MANAGERLeif J. Ahnell

COMMUNITY RELATIONS

Affordable HousingBusiness Imprv District Steering Builders' Board of AdjustmentCitizen's Pedestrian & BikewayCivil ServiceCommunity AppearanceCommunity RelationsDowntown BR Adv. Comm.EducationElder AffairsEnvironmentalFinancialGreen Living Historic PreservationLibraryMarineN Fed. Hwy. Steering Comm.Parks & RecreationPeople with DisabilitiesPlanning and ZoningZoning Board of Adjustment

MUNICIPAL SERVICESDan Grippo

POLICE SERVICESDan Alexander

FIRE-RESCUE SERVICES

Thomas R. Wood

RECREATION SERVICES

Mickey A. Gomez

FINANCIAL SERVICESLinda C. Davidson

DEVELOPMENT SERVICES

Ty Harris

UTILITY SERVICES

Chris Helfrich

AdministrationStreetsDredgeFacilities MaintenanceTraffic / Special ProjectsEngineering/SurveyEngineering/DesignTransportation FundSanitation FundStormwater Utility FundMotor Pool FundCRC FundBeach Renourish Fund

Community ServicesCommunications/DispatchBureau of Field ServicesLETF

AdministrationDispatchLogistics & SupportFire OperationsFire & Life Safety

AdministrationLibraryRecreationParksBeautificationBeach & Park DistrictLand DedicationCemetery/MausoleumGolf Courses

AdministrationAccountingCustomer ServiceTreasuryAccounts PayableMeter ReadingPurchasing Office of Management & BudgetParking ServicesDebt Service FundRetirement Sustainability Fund

AdministrationBuilding Code

CompliancePlanning & ZoningCDBG & SHIP

AdministrationInstrumentation /ControlElectricalWater Treatment PlantWater NetworkPlant MaintenanceQuality ControlW W Treatment PlantLift Station Maintenance Wastewater Network

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CITY CLERKSusan S. Saxton

George S. Brown

CITY ATTORNEYDiana Grub Frieser

DEPUTY CITY MANAGER

George S. BrownASSISTANT

CITY MANAGERMichael J. Woika

CODE ENFORCEMENT

Doug Sheedy

BOARDS AND COMMITTEES

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INFORMATION TECHNOLOGYSandra Stevens

ECONOMIC DEVELOPMENT

MANAGEMENTSERVICES

RISK MANAGEMENT

HUMAN RESOURCES

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Marcum LLP n 525 Okeechobee Boulevard n Suite 750 n West Palm Beach, Florida 33401 n Phone 561.653.7300 n Fax 561.653.7301 n marcumllp.com

 

INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor, City Council and City Manager City of Boca Raton, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Boca Raton, Florida, (the City), as of and for the fiscal year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility 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. Auditors’ 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 about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

 

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of a Matter As described in Notes 1 and 14 to the financial statements, the City changed its method of accounting and financial reporting for pensions as a result of the adoption of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Reporting for Pensions – an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB No. 68, both effective October 1, 2014, which resulted in the City restating net position for recognition of the City’s pension related activity prior to October 1, 2014. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedules of funding progress – OPEB, changes in City’s net pension liability and related ratios, City contributions and the budgetary comparison schedules on pages 1-18 and 92-104 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

 

Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory and statistical sections and the combining and individual fund statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2016 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. West Palm Beach, FL March 30, 2016  

Management’s Discussion and Analysis (Unaudited)

The purpose of financial reporting, in general, is to provide the readers of the financial statements with information that will help them make decisions or draw conclusions about an entity. As management of the City of Boca Raton, Florida (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2015. All amounts, unless otherwise indicated, are expressed in thousands of dollars. Financial Highlights

The assets plus deferred outflows of resources of the City exceeded its liabilities plus deferred inflows of resources at the close of the most recent fiscal year by $810.710 million (net position). Of this amount, $112.963 million (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors.

The City’s total net position decreased by $53.370 million which includes a prior

period adjustment that reduced beginning net position by $100.564 million and affected governmental and business-type activities and was a result of the implementation of GASB Statement No. 68 Accounting and Financial Reporting for Pension - an amendment of GASB Statement No. 27 and GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB Statement No. 68. This adjustment is further explained in Note 14. The net increase, before prior period adjustments, of $47.164 million is attributable to a significant increase in program revenues in the governmental activities of $27.309 and an increase in operating revenues for the business-type activities of $19.855 million, especially in water and sewer. The adjustment of $100.564 million was offset by the increase in net position of $47.164 million.

The City’s business-type activities reported total net position of $362.944 million,

which is an increase of $17.810 million, after prior period adjustments, or 5.2%, in comparison to the prior year. Approximately 20.10% of the total or $72.957 million is unrestricted and thus available for spending at the City’s discretion.

At the end of the current fiscal year, fund balance for the General Fund was $59.037 million, or 46.1% of the general fund expenditures and other financing uses. Of this balance, $170 thousand has been restricted for the Army Corp of Engineers for an overflow site in the event of emergency dredging of the Intracoastal Waterway, $12.233 million has been committed for hurricane/disaster emergency and Mizner Park debt service, $2.536 million was assigned for the subsequent years’ budget, $22.6 thousand for inventories was non-spendable and $44.075 million was unassigned.

Due to continued volatility in the financial market conditions, interest rates

increased by a small margin this past fiscal year, resulting in modest decrease interest earnings for the City. The City’s average interest earnings return decreased from .53% in 2014 to .43% in 2015.

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Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains required and other supplementary information in addition to the basic financial statements. Government-wide Financial Statements The focus of the government-wide financial statements is on the overall financial position and activities of the City of Boca Raton. Reporting is similar to that of a private-sector business. The City’s government-wide financial statements include the statement of net position and statement of activities. As described below, these statements do not include the City’s fiduciary funds because resources of these funds cannot be used to finance the City’s activities. However, the financial statements of fiduciary funds are included in the City’s fund financial statements, because the City is financially accountable for those resources, even though they belong to other parties. The Statement of Net Position presents financial and capital resources of the City. Assets and deferred outflows of resources; and liabilities and deferred inflows of resources are presented, with the net of these reported as net position. For example, the City reports buildings and infrastructure as assets, even though they are not available to pay the obligations incurred by the City. On the other hand, the City reports liabilities even though these liabilities might not be paid until several years into the future. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. Although the purpose of the City is not to accumulate net position, in general, as this amount increases it indicates that the financial position of the City is improving over time. The Statement of Activities presents the revenue and expenses of the City. The items presented on the statement of activities are measured in a manner similar to the approach used in the private-sector in that revenues are recognized when earned and expenses are reported when incurred. Accordingly, revenues are reported even when they may not be collected for several months after the end of the accounting period and expenses are recorded even though they may not have used cash during the current period. 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, law enforcement, fire rescue, physical environment, transportation, community development and parks and recreation. The business-type activities include water and sewer utility, cemetery/mausoleum, golf course, stormwater utility, and sanitation. The City’s government-wide financial statements are presented on pages 19-21 of this report.

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Fund Financial Statements Unlike government-wide financial statements, the focus of fund financial statements is directed to specific activities of the City rather than the City as a whole. Except for the General Fund, separate funds are established to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary (pension) funds. Governmental Funds Governmental fund financial statements consist of a balance sheet and statement of revenues, expenditures, and change in fund balances. These statements are prepared on an accounting basis that is significantly different from that used to prepare the government-wide financial statements. In general, these financial statements have a short-term emphasis and, for the most part, measure and account for cash and other assets that can easily be converted to cash. For example, amounts reported on the balance sheet include items such as cash and receivables collectible within a short period of time, but do not include capital assets such as land and buildings. Fund liabilities include amounts that are to be paid within a short period of time after the end of the fiscal year. Additionally included on the balance sheet are the City's deferred inflows and deferred outflows of resources. The difference between a fund’s total assets and deferred outflows and the fund's total liabilities and deferred inflows is labeled as the fund balance, and generally indicates the amount that can be used to finance the next fiscal year’s activities. The operating statement for governmental funds reports only those revenues and expenditures that were collected or paid during the current period or very shortly after the end of the year. For the most part, the balances and activities accounted for in governmental funds are also reported in the governmental activities columns of the government-wide financial statements. However, because a different accounting basis is used to prepare the fund financial statements and the government-wide financial statements, there are often significant differences between the totals presented. For this reason, there is an analysis after the balance sheet that reconciles the total fund balances to the amount of net position presented in the governmental activities column on the statement of net position. Also, there is an analysis after the statement of revenues, expenditures, and changes in fund balances that reconciles the total change in fund balances for all governmental funds to the change in net position as reported in the governmental activities column in the statement of activities. The City maintains twenty-three individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statements of revenues, expenditures, and changes in fund balances for the major funds which are the General Fund, Community Redevelopment Agency Mizner Park Revenue Fund, the Five Year Capital Improvement Fund and the Beach and Park Operations Fund. The City presents data from all other non-major governmental funds in a single column (non-major funds). Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City’s governmental fund financial statements are presented on pages 22-27.

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Proprietary Funds Proprietary fund financial statements consist of a statement of net position, a statement of revenues, expenses, and changes in net position and a statement of cash flows. These statements are prepared on an accounting basis that is similar to the basis used to prepare the government-wide financial statements. For financial reporting purposes, proprietary funds are grouped into Enterprise Funds and Internal Service Funds. The City uses Enterprise Funds to account for business-type activities that charge fees to customers for the use of specific goods or services. These funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Internal Service funds are used to account for services provided and billed on an internal basis. The City uses Internal Service Funds to account for its fleet of vehicles, information technology systems and self-insurance/benefit programs. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City presents a separate column for the Water and Sewer Utility Fund since it is most significant to the City. The remaining four non-major enterprise funds are aggregated and reported in a single column. Internal Service Funds are aggregated and presented in a single column. A statement of cash flows is presented at the fund financial statement level for proprietary funds, but no equivalent statement is presented in the government-wide financial statements for either governmental activities or business-type activities. The City’s proprietary fund financial statements are presented on pages 28-31. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. Fiduciary financial statements consist of a statement of fiduciary net position and a statement of changes in fiduciary net position. The City’s fiduciary fund financial statements are presented on pages 33-34. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 35-91. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits to its employees as well as other post employment benefits. This section also includes a comparison between the City’s adopted and final budget and actual financial results. The City adopts an annual appropriated budget for its governmental funds. A budgetary comparison schedule has been provided for the general fund and for the major special revenue funds to demonstrate compliance with this budget.

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Required supplementary information can be found on pages 92-104. Combining and individual fund statements and schedules referred to earlier in connection with major and non-major governmental funds and proprietary funds are presented immediately following the required supplementary information and can be found on pages 105-144 of this report. Government-Wide Financial Analysis The following schedule is a summary of the fiscal 2015 Statement of Net Position found on pages 19-20 with comparative information for fiscal 2014.

CITY OF BOCA RATON, FLORIDA Net Position (in thousands)

Governmental Business-type Activities Activities Total 2015 2014 2015 2014 2015 2014

Current and other assets $ 234,526 $ 207,096 $ 151,761 $ 129,763 $ 386,287 $ 336,859 Capital assets 407,164 422,766 256,289 263,161 663,453 685,927 Total assets 641,690 629,862 408,050 392,924 1,049,740 1,022,786 Deferred outflows 16,993 1,875 2,473 602 19,466 2,477 Non-current liabilities outstanding 187,944 100,660 38,778 40,253 226,722 140,913 Other liabilities 15,667 11,247 7,094 8,139 22,761 19,386 Total liabilities 203,611 111,907 45,872 48,392 249,483 160,299 Deferred inflows 7,306 884 1,707 - 9,013 884 Net position: Net investment in capital assets 343,424 365,123 221,972 224,767 565,396 589,890 Restricted 64,313 54,793 68,015 66,786 132,328 121,579 Unrestricted 40,029 99,030 72,957 53,581 112,986 152,611 Total net position $ 447,766 $ 518,946 $ 362,944 $ 345,134 $ 810,710 $ 864,080

The overall position of the City decreased in during the 2015 fiscal year. Changes in net position over time can be one of the best and most useful indicators of financial position. The net increase, before prior period adjustments, of $47.164 million is attributable to a significant increase in program revenues in the governmental activities of $27.309 and an increase in operating revenues for the business-type activities of $19.855 million. The total City’s net position balance of $810.710 million at September 30, 2015 is a 6.18%, or $53.370 million, decrease compared to the 2014 balance of $864.080 million. The decrease in net position is a result of the implementation of GASB Statement Nos. 68 and 71 which reduced beginning net position by $100.564 million. By far, the largest portion of the City’s net position (70%) reflect its investment in capital assets (such as land, roads, parks, buildings, machinery and equipment) less any related outstanding debt and deferred outflows used to acquire those assets. Although the capital assets are shown net of debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate and pay for these liabilities. With a 2015 balance of $565.396 million, net investment in capital assets decreased by 4.2% or $24.494 million, over the 2014 balance of $589.890 million. New acquisitions in 2015 were due primarily to the completion of construction projects related to capital assets, which were recognized as capital assets in prior fiscal years. Thus, acquisition amounts were out-paced by depreciation expenses, resulting in a net decrease to net investment in capital assets.

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16% of the City’s net position represents resources that are subject to external restrictions on how they may be used. The $132.328 million balance in restricted net position reflects a net increase of $10.749 million from $121.579 million in 2014 related to capital contributions for business-type activities. The remaining 14% of the City’s net position are unrestricted and may be used to meet the City’s on-going obligations to its citizens and creditors. The ending balance of $112.986 million is a 26%, or $39.625 million, decrease from the 2014 balance of $152.611 million. This decrease in unrestricted net position is related to the implementation of GASB Statement No. 68 and a prior period adjustment. The following schedule is a summary of the fiscal year ended September 30, 2015 Statement of Activities found on page 21 with comparative information for fiscal year ended September 30, 2014.

CITY OF BOCA RATON, FLORIDA Changes in Net Position (in thousands)

Governmental Business-type Activities Activities Total 2015 2014 2015 2014 2015 2014

Revenues: Program revenues: Charges for services $ 66,692 $ 63,177 $ 67,515 $ 63,534 $ 134,207 $ 126,711 Operating grants & contributions 4,495 6,262 - - 4,495 6,262 Capital grants & contributions 5,295 1,159 11,473 867 16,768 2,026 General revenues: Property taxes 65,238 61,938 65,238 61,938 Other taxes 50,243 49,273 50,243 49,273 Other 4,065 4,010 916 913 4,981 4,923 Total revenues 196,028 185,819 79,904 65,314 275,932 251,133 Expenses: General government 20,655 19,017 20,655 19,017 Law enforcement 40,575 43,913 40,575 43,913 Fire rescue 42,631 44,831 42,631 44,831 Physical environment 4,217 4,055 4,217 4,055 Transportation 17,744 19,166 17,744 19,166 Community development 3,257 2,804 3,257 2,804 Parks and recreation 37,107 37,507 37,107 37,507 Interest and fiscal charges 2,165 4,114 2,165 4,114 Water and sewer 48,616 45,393 48,616 45,393 Cemetery 610 623 610 623 Golf 2,726 2,787 2,726 2,787 Stormwater Utility 2,252 2,428 2,252 2,428 Sanitation 6,183 6,758 6,183 6,758 Total expenses 168,351 175,407 60,387 57,989 228,738 233,396 Increase in net position before transfers 27,677 10,412 19,517 7,325 47,194 17,737Transfers (338) (397) 338 397 - -Increase in net position 27,339 10,015 19,855 7,722 47,194 17,737Net position beginning, as previously stated 518,946 345,134 864,080 -Restatement of net position (98,519) - (2,045) (100,564) Net position beginning of year 420,427 508,931 343,089 337,412 763,516 846,343 Net position end of year $ 447,766 $ 518,946 $ 362,944 $ 345,134 $ 810,710 $ 864,080

Changes in net position:

Governmental activities increased the City’s net position by $27.339 million before prior period adjustments. This net increase in position is a result of the following:

Property tax revenues increased by approximately $3.300 million due to an increase in new construction and property tax values.

Other taxes increased by $970 thousand due to mostly to increased

collections in increased property values and increased sales tax collections, a sign of the improved economy.

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Charges for services increased by $3.515 million primarily due to increased development and redevelopment activity within the City.

Operating grants and contributions received by the City decreased by

approximately $1.77 million and capital grants and contributions increased by $4.14 million.

Other revenues increased by $55 thousand mostly due to an increase in

investment income.

Expenses during 2015 decreased by approximately $7.056 million from 2014; a decrease of $9.309 million in expenses is due primarily to decreases related to public safety, transportation, parks and recreation, and interest and fiscal charges which was offset by $2.253 million in increases in spending for general government, physical environment, and community development.

The following chart compares program and general revenues for the governmental activities for fiscal year 2015.

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The following is a chart of the fiscal year 2015 expenses by source of governmental activities by percent of total expenses.

The following is a comparative chart of the fiscal years 2015 and 2014 revenues by source for governmental activities.

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Business-Type Activities Net position for business-type activities at September 30, 2015 was $362.9 million, a 5.2%, or $17.8 million, increase from the 2014 balance of $345.1 million. The net position before prior period adjustment for the Water and Sewer Fund increased by $18.195 million in 2015, an 157% increase from the $7.1 million reported in 2014. In 2015, there were $11.982 million of capital contribution, an increase of $11.32 million over 2014. The following charts show the revenues, expenses and net position for the business-type activities by source for the fiscal year ended September 30, 2015.

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Financial Analysis of the City of Boca Raton’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The fund financial statements for the governmental funds are provided on pages 22-27. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Major Fund Information(in thousands)

General

Fund

Community Redevelopment Agency Mizner Park Revenue

Fund

Five Year Capital

Improvement Fund

Beach and Park

Operations Fund

Fiscal Year 2015 Revenues $ $ 141,676 $ 8,761 $ 8,551 $ 14,996 Expenditures 124,902 2,000 3,064 14,937 Other financing sources (uses) (3,065) (6,501) (1,948) (59)Increase (decrease) in fund balance $ 13,709 $ 260 $ 3,540 $ -

Fiscal Year 2014 Revenues $ 134,357 $ 8,242 $ 10,336 $ 15,040 Expenditures 123,939 1,500 5,326 15,020 Other financing sources (uses) (23,736) (6,502) (2,000) (20)Increase (decrease) in fund balance $ (13,318) $ 240 $ 3,009 $ -

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $44.07 million while the total fund balance amounted to $59.04 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures and other financing uses. Unassigned fund balance represents 34.4% of total general fund expenditures and other financing uses, while total fund balance represents 46.1% of that same amount. The fund balance of the City’s General Fund increased by $13.71 million in 2015, a $27.01 million increase from the 2014 change in net position. This increase was due primarily to the transfer in 2014 to establish the Retirement Sustainability Fund. The fund balance of the City’s Community Redevelopment Agency (CRA) Mizner Park Revenue Fund increased by $260 thousand in 2015, a $20 thousand increase from the 2014 change in net position. Revenues increased by $519 thousand while expenditures increased by $500 thousand. Other financing uses decreased by $900 hundred related to debt service. The fund balance of the City’s Five Year Capital Improvement Fund increased by $3.540 million, a $530 thousand increase from the 2014 change in net position. Grant funds of $1.3 million were received for beach renourishment projects and $890 thousand was related to an increase in property taxes compared to 2014. Due to completed projects expenditures decreased by $1.59 million.

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The Beach and Park Operations Fund decreased contributions from an independent special district by $44 thousand. This decrease relates to decreases in the district’s operating and capital costs; the City provides services to the special district through an interlocal agreement. The fund balance in the other non-major governmental funds increased $8.24 million, a $1.06 million increase from the 2014 change in net position. This increase was primarily attributable to parks and recreational contributions received related to new development in the downtown Boca Raton area. The chart below compares revenues by source for the governmental funds for fiscal years 2015 and 2014.

The following chart compares governmental expenditures by program for fiscal years 2015 and 2014.

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Proprietary Funds The table below summarizes both the operating income (loss) and the change in net position before prior period adjustment for each of the City’s proprietary funds. The current year operating income in the Water and Sewer Fund was $6.931 million as compared with $7.186 million in the prior year.

PROPRIETARY FUNDS Operating

Fund Name Income (Loss) Change in Net Position in thousands in thousands 2015 2014 2015 2014

Water and Sewer $ 6,931 $ 7,186 $ 18,195 $ 7,092 Cemetery / Mausoleum (369) (379) 159 138 Golf Course (232) (347) (39) (137) Stormwater Utility 101 (136) 159 (80) Sanitation 1,318 729 1,381 709 Fleet Management 585 255 2,320 1,690 Information Technology (1,527) (1,565) 729 (70) Insurance Programs 467 1,410 619 1,577 Retirement Sustainability 776 - 879 15,034 Total $ 8,050 $ 7,153 $ 24,402 $ 25,953

The Cemetery Mausoleum Fund experienced an operating loss of $369 thousand and an increase in net position due to a transfer in from the Cemetery and Mausoleum Perpetual Care Funds. The Golf Course Fund experienced an operating loss resulting in a decrease in net position. The Stormwater Utility Fund generated an operating income of $101 thousand and had a increase in net position. The Sanitation Fund generated an operating income and an increase in net position. Fleet Management experienced operating income of $585 thousand and an increase in net position of $2.32 million due to transfers from other funds for future vehicle and heavy equipment replacement. The Information Technology Fund recovers part of the cost of its operations through transfers in from other departments. The Self Insurance Fund increased its net position by $619 thousand due primarily to less than anticipated claim costs. The Retirement Sustainability Fund experienced an increase in net position of $879 thousand due to increased reserves made in the current year for Retirement Sustainability Fund.

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The following chart summarizes the operations of the Water and Sewer Fund for fiscal years 2015 and 2014.

The following chart summarizes the operations of the proprietary funds, excluding the Water and Sewer Fund, for fiscal years 2015 and 2014.

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General Fund Budgetary Highlights The difference between the original and final amended budget for 2015 was an increase of $706.2 thousand funded from unassigned fund balance related to increased operating costs for general government, public safety, physical environment, transportation and recreation services. The City generated a positive variance of approximately $17.54 million between the final adopted budget and actual results of operations. Actual revenues were greater than final budgeted revenues by $8.4 million due to the collection of additional property and franchise taxes, increased development and redevelopment activity, increased fire assessment collections and metered parking programs. Actual expenditures during the year were less than final budgeted expenditures by $9.15 million. This positive variance is due primarily to actual operating costs being less than anticipated; general government of $2.42 million, public safety of $4 million, physical environment of $512 thousand, transportation of $704 thousand and parks and recreation of $1.5 million. Both the original and the final budget anticipated $24.9 and $26.1 million, respectively, to be expended from available unassigned fund balance. During the year, however, expenditures in most areas were below the budgetary estimates while revenues were greater than the budgetary estimates, producing a positive budget variance of $12.78 million. The following chart depicts the fiscal year 2015 original and amended budgets, as well as, the actual balance.

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Capital Assets and Debt Administration

Capital Assets As of year-end, the City had $663.452 million invested in a variety of capital assets, as reflected in the following schedule. In 2015, there was a net decrease (additions less retirements and depreciation) of $22.475 million.

CITY OF BOCA RATON, FLORIDACapital Assets

Net of Depreciation and Amortization(in thousands)

Governmental Business-type Activities Activities Total

2015 2014 2015 2014 2015 2014 Land $ 138,136 $ 138,136 $ 833 $ 833 $ 138,969 $ 138,969 Utility Plant in Service 194,973 183,462 194,973 183,462 Buildings 58,874 61,819 678 738 59,552 62,557 Improvements other than Buildings 22,019 23,783 14,436 14,312 36,455 38,095 Equipment 14,219 15,808 27,650 26,922 41,869 42,730 Intangible 187 268 2,416 2,589 2,603 2,857 Infrastructure 172,438 181,457 172,438 181,457 Construction in Progress 1,290 1,495 15,303 34,305 16,593 35,800 Total $ 407,163 $ 422,766 $ 256,289 $ 263,161 $ 663,452 $ 685,927

Major capital asset events during the fiscal year included:

Capital projects under construction in the business-type activities decreased by $19 million.

Additional information can be found in Note 6 Capital Assets on pages 58-60. Debt Administration As of year-end, the City had $97.9 million in debt (bonds, notes, etc.) outstanding compared to the $110.4 million last year, an 11% decrease (considering debt retirement). Of this amount of debt outstanding as of the end of fiscal year 2015, approximately 30% was backed by the full faith and credit of the government and the balance was secured by various revenue sources.

CITY OF BOCA RATON, FLORIDA Bonded Debt and Loans Payable

(in thousands)

Governmental Business-type Activities Activities Total

2015 2014 2015 2014 2015 2014

General Obligation Bonds $ 29,345 $ 33,105 $ 29,345 $ 33,105 Revenue Bonds 1 24,198 29,555 $ 34,345 $ 36,780 58,543 66,335 Special Assessment Debt with Government Commitments 10,020 10,995 10,020 10,995 Totals $ 63,563 $ 73,655 $ 34,345 $ 36,780 $ 97,908 $ 110,435

1 Includes accreted interest on Capital Appreciation Bonds; for FY 2015 that amount was $13,720 million.

16

The debt position of the City is summarized below and is more fully explained in Note 9 Long-Term Debt on pages 62-68. During fiscal year 2015, the City had the following debt activity:

The City refunded the 2008 Water and Sewer Revenue Bonds outstanding amount of $14.405 million through a private placement of $15.555 million with present value savings of $946 thousand.

All other decreases in the debt payable were due to principal payments on the debt.

The City’s General Obligation Bonds were rated AAA by all three credit rating agencies. Boca Raton was the first municipality in Florida to have been granted this credit rating by all three rating agencies. The Water and Sewer Utility Fund bonds are also rated AAA by Fitch Rating Services, Standard and Poor’s and Moody’s Investor Service. Under Florida Statutes, no debt limit margin is placed on local governments. Economic Factors and Next Year’s Budgets and Rates The City Council during the annual Goal Setting Session in May 2015, established goals and priorities which included: a financially sound City government, top quality municipal services and a strong partnership with our stakeholders. These goals were used as a guide to prioritize funding for the Fiscal Year 2015-16 Approved Budget. The City expenditures have been strategically linked to the goals, objectives, core businesses, and existing obligations of the City.

For FY 2015-16 property values increased 7.61% in the City. The net increase is composed of a 6.69% increase from reassessments of existing properties and an increase of .92% from new construction (net of CRA Downtown values). This is the third consecutive increase in property values after four prior years of decline. The City did not increase the operating property tax rates in 2015 but the debt service rate declined slightly. The operating millage rate for 2015 remains at 3.68 mills per $1,000 of taxable value.

Current projections indicate that General Fund revenues will grow at an estimated rate of 1-2% annually for the next several years while at the same time operating costs are projected to increase at 3-4% annually.

The Florida legislature is again considering various proposals relating to the

elimination of local government revenues, pension reform and limits to business taxes. Potential legislation could have a significant impact on a local government’s ability to maintain and or improve services to residents. The City is carefully monitoring these initiatives and their future impact on the City’s ability to function at its’ present level.

17

Contacting the City’s Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability. Additional Information is also available on the City’s website at www.myboca.us. If you have any questions about this report or would like additional financial information, please contact:

City of Boca Raton Financial Services Department 201 W. Palmetto Park Road Boca Raton, Florida 33432

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CITY OF BOCA RATON, FLORIDASTATEMENT OF NET POSITION

SEPTEMBER 30, 2015

Primary Government TotalGovernmental

ActivitiesBusiness-Type

ActivitiesPrimary

Government

AssetsCash and cash equivalents $ 143,862,610 $ 52,934,120 $ 196,796,730Investments 59,630,632 5,599,948 65,230,580Receivables, net 17,244,940 9,302,398 26,547,338Due from other governmental units 6,739,184 99,670 6,838,854Inventories 540,410 60,365 600,775Other assets 243,989 1,348 245,337Restricted:

Cash and cash equivalents 3,132,565 46,435,970 49,568,535Investments 1,287,409 35,240,300 36,527,709Interest receivable on investments 1,138 7,040 8,178Accounts receivable 63,202 63,202Assessment receivable 1,360,666 1,360,666Interest receivable on assessments 40,482 40,482

Net pension assets 1,780,416 679,064 2,459,480Capital assets:

Non-depreciable 139,425,562 16,135,233 155,560,795Depreciable (net) 267,737,545 240,153,526 507,891,071

Total assets 641,689,602 408,050,130 1,049,739,732

Deferred outflows of resources:Deferred amount on refunding 1,563,405 1,167,851 2,731,256Advance contributions 1,908,242 1,908,242Deferred outflows for pensions 13,521,804 1,305,500 14,827,304

Total deferred outflows of resources 16,993,451 2,473,351 19,466,802

The notes to the financial statements are an integral part of this statement.

19

CITY OF BOCA RATON, FLORIDASTATEMENT OF NET POSITION (continued)

SEPTEMBER 30, 2015

Primary Government TotalGovernmental

ActivitiesBusiness-Type

ActivitiesPrimary

Government

LiabilitiesAccounts payable and accrued liabilities $ 10,173,168 $ 1,469,375 $ 11,642,543Accrued interest payable 323,594 323,594Retainage payable 510,754 510,754Performance bonds and escrow funds 4,287,995 1,000 4,288,995Unearned revenue 881,818 17,995 899,813Current liabilities payable from restricted assets:

Current accounts payable 577,267 577,267Customer deposits payable 3,951,384 3,951,384Current retainage payable 84,906 84,906Current accrued interest payable 482,669 482,669

Non-current liabilitiesDue within one year:

Compensated absences 1,506,143 191,742 1,697,885Bonds and loans 7,680,486 3,715,000 11,395,486Estimated liability for self-insured losses 2,575,000 2,575,000

Due in more than one year:Compensated absences 13,555,291 1,725,680 15,280,971Bonds and loans 57,617,435 31,174,085 88,791,520Net pension liability 96,626,637 1,534,742 98,161,379Net OPEB obligation 1,862,397 436,603 2,299,000Estimated liability for self-insured losses 6,521,000 6,521,000

Total liabilities 203,610,964 45,873,202 249,484,166

Deferred inflows of resources:Deferred inflows for pensions 7,306,446 1,706,703 9,013,149

Total deferred inflows of resources 7,306,446 1,706,703 9,013,149

Net PositionNet investment in capital assets 343,424,025 221,971,865 565,395,890Restricted - nonexpendable, perpetual care 3,996,204 3,996,204Restricted for:

Community development 17,752,134 17,752,134Debt service 11,506,643 38,355,350 49,861,993Law enforcement 1,211,259 1,211,259Transportation 9,980,626 9,980,626Economic development 6,850,250 6,850,250Renewal and replacement 26,555,118 26,555,118Operations and maintenance reserves 3,104,100 3,104,100Capital projects 12,845,743 12,845,743Other purposes 170,000 170,000

Unrestricted 40,028,759 72,957,143 112,985,902Total net position $ 447,765,643 $ 362,943,576 $ 810,709,219

The notes to the financial statements are an integral part of this statement.

20

CITY OF BOCA RATON, FLORIDASTATEMENT OF ACTIVITIES

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

Program RevenuesNet (Expenses) Revenues

and Changes in Net PositionPrimary Government

Functions/Programs ExpensesCharges for

Services

OperatingGrants and

Contributions

CapitalGrants and

ContributionsGovernmental

ActivitiesBusiness-type

Activities TotalPrimary Government:Governmental Activities:

General government $ 20,654,644 $ 32,293,807 $ 402,685 $ 152,683 $ 12,194,531 $ 12,194,531Law enforcement 40,574,825 2,483,857 414,913 (37,676,055) (37,676,055)Fire rescue 42,630,539 10,605,400 107,111 (31,918,028) (31,918,028)Physical environment 4,217,087 136,858 642,204 (3,438,025) (3,438,025)Transportation 17,744,599 175,000 (17,569,599) (17,569,599)Community development 3,257,550 1,958,641 2,927,585 1,628,676 1,628,676Parks and recreation 37,106,655 19,213,527 4,967,656 (12,925,472) (12,925,472)Interest and fiscal charges 2,165,547 (2,165,547) (2,165,547)

Total Governmental Activities 168,351,446 66,692,090 4,494,498 5,295,339 (91,869,519) (91,869,519)Business-type Activities:

Water and sewer 48,615,953 54,933,746 11,269,266 $ 17,587,059 17,587,059Cemetery 609,451 235,700 (373,751) (373,751)Golf course 2,725,985 2,490,527 203,952 (31,506) (31,506)Stormwater utility 2,252,301 2,352,983 100,682 100,682Sanitation 6,183,262 7,501,602 1,318,340 1,318,340

Total Business-Type Activities 60,386,952 67,514,558 11,473,218 18,600,824 18,600,824Total Primary Government $ 228,738,398 $ 134,206,648 $ 4,494,498 $ 16,768,557 (91,869,519) 18,600,824 (73,268,695)

General revenues:Property tax 65,238,402 65,238,402Utility tax 21,360,103 21,360,103Franchise tax 12,892,243 12,892,243Sales tax 6,687,160 6,687,160Gas tax 2,119,634 2,119,634Incremental property tax 7,183,269 7,183,269State shared revenues, unrestricted 2,549,027 2,549,027Unrestricted investment earnings 1,278,480 846,692 2,125,172Gain on disposal of capital asset 49,131 50,209 99,340Miscellaneous 188,262 18,945 207,207Transfers (338,000) 338,000 -

Total general revenues 119,207,711 1,253,846 120,461,557

Change in net position 27,338,192 19,854,670 47,192,862

Net position, beginning as originally stated 518,946,444 345,133,740 864,080,184Prior period adjustment (98,518,993) (2,044,834) (100,563,827)

Net position, beginning as restated 420,427,451 343,088,906 763,516,357

Net position, ending $ 447,765,643 $ 362,943,576 $ 810,709,219

The notes to the financial statements are an integral part of this statement.

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CITY OF BOCA RATON, FLORIDAGOVERNMENTAL FUNDS

BALANCE SHEETSEPTEMBER 30, 2015

General

CommunityRedevelopmentAgency MiznerPark Revenue

Five YearCapital

ImprovementFund

ASSETSCash and cash equivalents $ 38,458,571 $ 1,121,021 $ 21,003,314Investments 20,098,930 451,662 8,631,964Receivables, net:

Accounts receivable 3,852,798 13,023,846 4,660AssessmentsInterest 17,427 795 3,725

Due from other funds 2,641,749Due from other governmental units 2,615,441 493,084Inventories 22,557Restricted:

Cash and cash equivalentsInvestmentsInterest receivable on investments

Total assets 67,707,473 14,597,324 30,136,747

DEFERRED OUTFLOWS OF RESOURCESAdvance pension contributions 1,908,242

Total deferred outflows of resources 1,908,242

Total assets and deferred outflows of resources $ 69,615,715 $ 14,597,324 $ 30,136,747

LIABILITIESAccounts payable and accrued liabilities $ 6,165,358 $ 297,334Performance bonds and escrow funds 3,473,815 268,600Due to other fundsUnearned revenue 866,022

Total liabilities 10,505,195 565,934

DEFERRED INFLOWS OF RESOURCESUnavailable revenue 73,951 13,023,846

Total deferred inflows of resources 73,951 13,023,846

FUND BALANCESNon-spendable:

Nonspendable inventories 22,557Perpetual care, cemeteryPerpetual care, mausoleum

Restricted for:Army Corp of Engineers 170,000Debt serviceHousingLaw enforcementTransportationRight of way beautificationDowntown 1,573,478Economic developmentLand dedicationLibrary

Committed to:Hurricane/disaster emergency 10,600,000Mizner Park debt service 1,633,000ParkingRight of way acquisition

Assigned to:Capital projects 29,570,813Subsequent year's budget 2,536,200

Unassigned 44,074,812

Total fund balances 59,036,569 1,573,478 29,570,813

Total liabilities, deferred inflows of resources andfund balances $ 69,615,715 $ 14,597,324 $ 30,136,747

The notes to the financial statements are an integral part of this statement.

22

Beach and ParkOperations

Fund

Non-MajorGovernmental

Funds

TotalGovernmental

Funds

$ 200 $ 36,678,946 $ 97,262,05211,365,266 40,547,822

1,090 58,542 16,940,936129,352 129,35214,183 36,130

2,641,7493,093,626 536,733 6,738,884

22,557

3,132,565 3,132,5651,287,409 1,287,409

1,138 1,1383,094,916 53,204,134 168,740,594

1,908,2421,908,242

$ 3,094,916 $ 53,204,134 $ 170,648,836

$ 581,654 $ 324,609 $ 7,368,9559,250 536,330 4,287,995

2,498,912 142,837 2,641,7495,100 871,122

3,094,916 1,003,776 15,169,821

13,097,79713,097,797

22,5571,385,069 1,385,0692,611,135 2,611,135

170,00011,830,238 11,830,238

531,532 531,5321,211,259 1,211,2599,980,626 9,980,6262,117,215 2,117,2153,213,846 4,787,3246,850,250 6,850,2509,762,797 9,762,797

372,096 372,096

10,600,0001,633,000

3,067 3,0672,331,228 2,331,228

29,570,8132,536,200

44,074,812

52,200,358 142,381,218

$ 3,094,916 $ 53,204,134 $ 170,648,836

23

CITY OF BOCA RATON, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2015

Ending fund balance - governmental funds $ 142,381,218 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. Governmental capital assets, excluding Internal Service Funds $ 688,556,270 Less accumulated depreciation/amortization (289,281,019) Net capital assets 399,275,251 Other long-term assets are not available to pay for current period expenditures and, therefore, are unavailable in the governmental funds. Operating lease revenues 13,023,846 Communication Service Tax revenues 73,951 13,097,797 Net pension assets resulting from overfunding of the General Employees' pension plan 1,598,414 Long term liabilities, including bonds and loans payable, are not due and payable in the current period and therefore are not reported in the governmental funds. Accrued interest payable on long-term debt (323,594) Bonds and loans payable (65,297,921) Deferred amount on refunding 1,563,405 Compensated absences (14,550,322) Net OPEB obligation (1,770,471) Supplemental SERP pension accrual (465,708) Net pension liability - Police and Firefighters' and Executive Employees' pension plans (96,004,044) Total long-term liabilities (176,848,655) Deferred outflows/inflows of resources related to pensions:

Deferred outflows for pensions 13,141,397 Deferred inflows for pensions (6,846,536)

6,294,861 Internal service funds are used by management to charge the costs of fleet management, management information systems and insurance programs to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the same statement of net position. Assets 75,097,499 Liabilities (13,130,742) Net position 61,966,757 Net position of governmental activities $ 447,765,643

The notes to the financial statements are an integral part of this statement.

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CITY OF BOCA RATON, FLORIDAGOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

General

CommunityRedevelopmentAgency MiznerPark Revenue

Five YearCapital

ImprovementFund

REVENUESTaxes $ 83,981,271 $ 7,183,269 $ 6,936,922Licenses and permits 18,199,802Intergovernmental 13,487,632 1,272,596Charges for services 24,030,157 1,561,772Fines and forfeitures 1,524,432Special assessmentsDonations in lieu of land 152,683Investment earnings (loss) 371,270 15,999 189,233Miscellaneous 81,433

Total revenues 141,675,997 8,761,040 8,551,434

EXPENDITURESCurrent:

General government 19,460,774 241,208Law enforcement 38,609,266 786,250Fire rescue 40,693,307 46,478Physical environment 4,220,664Transportation 4,964,582 1,398,689Community development 2,000,000Parks and recreation 16,885,569 247,550Capital outlay 67,636 343,491

Debt service:PrincipalInterest

Total expenditures 124,901,798 2,000,000 3,063,666

Excess (deficiency) of revenues over expenditures 16,774,199 6,761,040 5,487,768

OTHER FINANCING SOURCES (USES)Transfers in 21,000 100,000Transfers out (3,086,300) (6,601,100) (1,948,200)

Total other financing sources (uses) (3,065,300) (6,501,100) (1,948,200)

Net change in fund balances 13,708,899 259,940 3,539,568

Fund balances - beginning 45,327,670 1,313,538 26,031,245

Fund balances - ending $ 59,036,569 $ 1,573,478 $ 29,570,813

The notes to the financial statements are an integral part of this statement.

25

Beach and ParkOperations

Fund

NonmajorGovernmental

Funds

TotalGovernmental

Funds

$ 10,653,157 $ 108,754,61918,199,802

$ 12,537,299 906,517 28,204,0442,458,533 2,494,731 30,545,193

679,186 2,203,6181,505,634 1,505,6344,489,385 4,642,068

296,473 872,975139,405 220,838

14,995,832 21,164,488 195,148,791

19,701,982255,140 39,650,656

40,739,7854,220,664

1,172,938 7,536,2091,940,306 3,940,306

14,725,650 3,898,242 35,757,011211,582 305,447 928,156

7,722,363 7,722,3635,081,592 5,081,592

14,937,232 20,376,028 165,278,724

58,600 788,460 29,870,067

9,496,600 9,617,600(58,600) (2,049,500) (13,743,700)(58,600) 7,447,100 (4,126,100)

8,235,560 25,743,967

43,964,798 116,637,251

$ $ 52,200,358 $ 142,381,218

26

CITY OF BOCA RATON, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Net change in fund balances –total governmental funds $ 25,743,967 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures, however, in the statement of activities the cost of those assets is depreciated over their estimated useful lives.

Expenditures for capital assets $ 689,725 Less current year depreciation/amortization (15,713,207) (15,023,482) The net effect of the various miscellaneous transactions involving capital assets (i.e. sales, trade ins and donations) is to decrease net position.

(14,563)

Some revenues and expenses reported in the statement of activities are not reported in the governmental funds because they have no effect on current financial resources.

Operating lease revenues 396,869 Communications Service Tax revenues 39,032 Compensated absences (144,502) Net OPEB obligation (169,710) Net effect of accrued interest on long term debt (difference between amount that would have been accrued in prior year and current year accrual)

640,785

762,474

Pension contributions are reported as expenditures in the governmental funds and recorded as a net pension asset on the statement of net position.

1,325,773

The issuance of long-term debt (e.g., bonds and loans) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.

Debt retired: Bond repayment 7,722,363 Deferred amount on refunding 2,369,573 Principal payments on bonds and loans Change in accreted interest on tax increment revenue bonds payable The governmental funds report bond premiums, discounts and similar items as expenditures when debt is first issued, whereas those amounts are deferred and amortized in the statement of activities.

Amortization of deferred amount on refunding (311,241) Amortization of bond discount (1,049) Amortization of bond premium 217,976 9,997,622 Internal service funds are used by management to charge costs of fleet management, management information systems and insurance programs to individual funds.

The net revenue of the activities of the internal service funds is reported with governmental activities: Net operating income of the internal service funds 300,792 Impact of external transactions on the net position of governmental activities: Investment income 405,505 Gain on disposal of capital assets 52,004 Net transfers from governmental funds to internal service funds decrease the fund balances of the governmental funds, but have no effect on net position as reported on a government-wide basis.

3,788,100

4,546,401

Change in net position of governmental activities $ 27,338,192

The notes to the financial statements are an integral part of this statement.

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CITY OF BOCA RATON, FLORIDAPROPRIETARY FUNDS

STATEMENT OF NET POSITIONSEPTEMBER 30, 2015

Business - Type Activities - Enterprise FundsGovernmental

Activities

Water andSewer

NonmajorEnterprise

Funds Total

InternalServiceFund

ASSETSCurrent assets:

Cash and cash equivalents $ 41,762,010 $ 11,172,110 $ 52,934,120 $ 46,600,558Investments 994,342 4,605,606 5,599,948 19,082,810Interest receivable on investments 27,295 4,509 31,804 18,599Interest receivable on assessments 28,280 28,280Accounts receivable 6,990,855 1,480,065 8,470,920 183,125Assessments receivable 771,394 771,394Due from other governmental units 99,670 99,670 300Inventories 60,365 60,365 517,853Other assets 1,348 1,348 243,989

Total unrestricted current assets 50,574,176 17,423,673 67,997,849 66,647,234

Restricted assets:Cash and cash equivalents 46,435,970 46,435,970Investments 35,240,300 35,240,300Interest receivable on investments 7,040 7,040Interest receivable on assessments 42,691 42,691Assessments receivable 1,358,457 1,358,457

Total restricted current assets 83,084,458 83,084,458

Total current assets 133,658,634 17,423,673 151,082,307 66,647,234

Noncurrent assets:Net pension asset 448,119 230,945 679,064 182,002Capital assets:

Utility plant in service 371,935,411 371,935,411Land 245,873 586,735 832,608Buildings 2,259,661 2,259,661 1,313,785Golf course improvements 3,660,473 3,660,473Cemetery lot improvements 477,867 477,867Stormwater utility improvements 16,729,384 16,729,384Equipment 49,473,667 9,087,569 58,561,236 21,912,367Construction in progress 15,302,625 15,302,625 24,149 Less accumulated depreciation (201,832,115) (13,754,047) (215,586,162) (15,433,806)Intangible assets 3,541,626 3,541,626 1,081,219 Less accumulated amortization (1,425,970) (1,425,970) (1,009,858)Total capital assets (net of accumulated depreciation/amortization) 237,241,117 19,047,642 256,288,759 7,887,856

Total noncurrent assets 237,689,236 19,278,587 256,967,823 8,069,858Total assets 371,347,870 36,702,260 408,050,130 74,717,092

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 1,167,851 1,167,851Deferred outflows for pensions 897,641 407,859 1,305,500 380,407

Total deferred outflows of resources 2,065,492 407,859 2,473,351 380,407

The notes to the financial statements are an integral part of this statement.

28

CITY OF BOCA RATON, FLORIDAPROPRIETARY FUNDS (continued)

STATEMENT OF NET POSITIONSEPTEMBER 30, 2015

Business - Type Activities - Enterprise FundsGovernmental

Activities

Water andSewer

NonmajorEnterprise

Funds Total

InternalServiceFund

LIABILITIESAccounts payable and accrued liabilities $ 1,012,243 $ 457,132 $ 1,469,375 $ 2,338,505Compensated absences 123,901 67,841 191,742 51,111Retainage payable 510,754 510,754Performance bonds and escrow funds 1,000 1,000Estimated liability for self-insurance losses 2,575,000Unearned revenue 17,995 17,995 10,696

Total unrestricted current liabilities 1,646,898 543,968 2,190,866 4,975,312

Current liabilities payable from restricted assets:Accounts payable and accrued liabilities 577,267 577,267Customer deposits payable 3,951,384 3,951,384Restricted retainage payable 84,906 84,906Revenue bonds payable, current portion 3,715,000 3,715,000Accrued interest payable 482,669 482,669

Total current liabilities payable from restricted assets 8,811,226 8,811,226

Total current liabilities 10,458,124 543,968 11,002,092 4,975,312

Non-current liabilities:Compensated absences 1,115,112 610,568 1,725,680 460,001Net pension liability 1,262,975 271,767 1,534,742 622,593Net OPEB obligation 288,884 147,719 436,603 91,926Revenue bonds payable 31,174,085 31,174,085Estimated liability for self-insurance 6,521,000

Total noncurrent liabilities 33,841,056 1,030,054 34,871,110 7,695,520Total liabilities 44,299,180 1,574,022 45,873,202 12,670,832

DEFERRED INFLOWS OF RESOURCESDeferred inflows for pensions 1,129,202 577,501 1,706,703 459,910

Total deferred inflows of resources 1,129,202 577,501 1,706,703 459,910

NET POSITIONNet investment in capital assets 202,924,223 19,047,642 221,971,865 7,887,856

Restricted for:Debt service 38,355,350 38,355,350Renewal and replacement 26,555,118 26,555,118Operations and maintenance reserves 3,104,100 3,104,100

Unrestricted 57,046,189 15,910,954 72,957,143 54,078,901Total net position $ 327,984,980 $ 34,958,596 $ 362,943,576 $ 61,966,757

The notes to the financial statements are an integral part of this statement.

29

CITY OF BOCA RATON, FLORIDAPROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITIONFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

Business - Type Activities - Enterprise FundsGovernmental

Activities

Water andSewer

NonmajorEnterprise

Funds Total

InternalService

Fund

OPERATING REVENUESCharges for sales and services $ 12,508,692 $ 12,508,692Fleet management $ 3,624,797Management information processing 5,463,237Insurance premiums 15,436,586Insurance premium tax 3,198,125Retirement sustainability 776,300Water sales $ 32,201,278 32,201,278Sewer service charges 19,336,077 19,336,077Other 2,694,610 80,125 2,774,735

Total operating revenues 54,231,965 12,588,817 66,820,782 28,499,045

OPERATING EXPENSESPersonal services 9,936,390 5,103,904 15,040,294 4,503,010Materials and supplies 4,363,904 360,230 4,724,134 1,688,067General and administration 10,278,822 10,278,822Other services and charges 8,748,363 4,822,667 13,571,030 6,774,222Insurance claims 9,746,271Pension benefits 3,198,125Depreciation of capital assets 13,799,564 1,484,198 15,283,762 2,288,558Amortization 173,593 173,593

Total operating expenses 47,300,636 11,770,999 59,071,635 28,198,253

Operating income (loss) 6,931,329 817,818 7,749,147 300,792

NONOPERATING REVENUES (EXPENSES)Investment earnings (loss) 750,839 95,853 846,692 405,505Interest expense (1,315,317) (1,315,317)Gain (loss) on disposal of capital assets 4,650 45,559 50,209 52,004

Total nonoperating revenues (expenses) (559,828) 141,412 (418,416) 457,509

Income (loss) before transfers and contributions 6,371,501 959,230 7,330,731 758,301

Transfers in 521,500 521,500 3,790,600Transfers out (158,500) (25,000) (183,500) (2,500)Capital contributions 11,981,987 203,952 12,185,939

Change in net position 18,194,988 1,659,682 19,854,670 4,546,401

Net position, beginning as originally stated 311,326,398 33,807,342 345,133,740 58,108,789Prior period adjustment (1,536,406) (508,428) (2,044,834) (688,433)

Net position, beginning as restated 309,789,992 33,298,914 343,088,906 57,420,356

Net position, ending $ 327,984,980 $ 34,958,596 $ 362,943,576 $ 61,966,757

The notes to the financial statements are an integral part of this statement.

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Governmental Activities

Water and Sewer

Non-Major Enterprise

Funds Total Internal Service

Funds

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 53,304,117 $ 12,633,792 $ 65,937,909 $ 28,463,546 Payments to suppliers (21,599,981) (5,471,288) (27,071,269) (10,671,697) Payments to employees (12,726,465) (5,388,285) (18,114,750) (4,589,649) Claims paid - - - (9,138,271) Net cash provided by (used in) operating activities 18,977,671 1,774,219 20,751,890 4,063,929

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in - 521,500 521,500 3,790,600 Transfers out (158,500) (25,000) (183,500) (2,500) Net cash provided by (used in) noncapital financing activities (158,500) 496,500 338,000 3,788,100

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development charges 10,513,599 203,952 10,717,551 - Payment of bond principal (3,626,760) - (3,626,760) - Acquisition of capital assets (6,959,540) (136,235) (7,095,775) (1,723,746) Interest paid (1,585,695) - (1,585,695) - Proceeds from sale of capital assets 4,650 45,559 50,209 52,004 Net cash provided by (used in) capital and related financing activities (1,653,746) 113,276 (1,540,470) (1,671,742)

CASH FLOWS FROM INVESTING ACTIVITIES Interest received 781,093 99,640 880,733 422,576 Sale of investments 56,742,084 7,116,098 63,858,182 31,356,312 Purchase of investments (36,234,642) (4,605,606) (40,840,248) (19,082,810) Net cash provided by (used in) investing activities 21,288,535 2,610,132 23,898,667 12,696,078

Net increase in cash and cash equivalents 38,453,960 4,994,127 43,448,087 18,876,365 Cash and cash equivalents Beginning of year 49,744,020 6,177,983 55,922,003 27,724,193

End of year $ 88,197,980 $ 11,172,110 $ 99,370,090 $ 46,600,558

Enterprise Funds

CITY OF BOCA RATON, FLORIDAPROPRIETARY FUNDS

STATEMENT OF CASH FLOWSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

The notes to the financial statements are an integral part of this statement. (Continued)

31

Governmental Activities

Water and Sewer

Non-Major Enterprise

Funds Total Internal Service

Funds

Enterprise Funds

CITY OF BOCA RATON, FLORIDAPROPRIETARY FUNDS

STATEMENT OF CASH FLOWS (continued)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating income (loss) $ 6,931,329 $ 817,818 $ 7,749,147 $ 300,792 Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation 13,799,564 1,484,198 15,283,762 2,288,558 Amortization 173,593 - 173,593 -

Change in assets, liabilities, deferred outflows & deferred inflows (Increase) decrease in accounts receivable (193,404) 34,244 (159,160) (45,895) (Increase) decrease in assessments receivable (770,625) - (770,625) - (Increase) decrease in due from other governmental units - 6,328 6,328 (300) (Increase) decrease in inventories - (1,367) (1,367) 76,953 (Increase) decrease in other assets - 1,211 1,211 (243,989) (Increase) decrease in net pension asset (448,119) (230,945) (679,064) (182,002) (Increase) decrease in deferred pension outflows (77,916) (57,861) (135,777) (36,575) Increase (decrease) in accounts payable and accrued liabilities (53,852) (289,054) (342,906) 1,192,951 Increase (decrease) in retainage payable (471,211) - (471,211) - Increase (decrease) in customer deposits payable 36,181 - 36,181 - Increase (decrease) in compensated absences (7,764) 4,679 (3,085) 28,784 Increase (decrease) in OPEB obligations 23,849 9,723 33,572 15,718 Increase (decrease) in estimated liability for self-insurance losses - - - 608,000 Increase (decrease) in unearned revenue - 4,403 4,403 10,696 Increase (decrease) in net pension liability (1,093,156) (586,659) (1,679,815) (409,672) Increase (decrease) in deferred pension inflows 1,129,202 577,501 1,706,703 459,910 Total adjustments 12,046,342 956,401 13,002,743 3,763,137

Net cash provided by (used in) operating activities $ 18,977,671 $ 1,774,219 $ 20,751,890 $ 4,063,929 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Unrealized gain on investments $ 167,433 $ 21,001 $ 188,434 $ 92,475

The notes to the financial statements are an integral part of this statement.

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CITY OF BOCA RATON, FLORIDAPENSION TRUST FUNDS

STATEMENT OF FIDUCIARY NET POSITIONSEPTEMBER 30, 2015

ASSETSCash and cash equivalents $ 13,283,183Investments:

Corporate bonds and debentures 71,585,863U.S. government securities 38,581,558Common and preferred stock 243,096,727Real estate 48,535,538Mutual funds 96,017,369Florida Municipal Pension Trust Fund 32,177,339

Total Investments 529,994,394Receivables:

Interest and dividends 1,166,358Unsettled trades receivable 1,192,117Accounts receivable 85,219

Total receivables 2,443,694

Other assets 4,516Prepaid expenses 57,012

Total assets 545,782,799

DEFERRED OUTFLOWS OF RESOURCESTotal deferred outflows of resources

LIABILITIESAccounts payable and accrued liabilities 500,603Unsettled trades payable 1,662,249

Total liabilities 2,162,852

DEFERRED INFLOWS OF RESOURCESAdvance contributions 1,908,242

Total deferred inflows of resources 1,908,242

NET POSITION RESTRICTED FOR PENSIONS $ 541,711,705

The notes to the financial statements are an integral part of this statement.

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CITY OF BOCA RATON, FLORIDAPENSION TRUST FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

ADDITIONSContributions:

City $ 14,827,304State 3,198,125Employee 6,131,150Transfer from other pension trust funds 76,219

Total contributions 24,232,798Investment income:

Interest revenue 3,961,575Dividends 7,327,803Net appreciation (depreciation) in fair value of investments (8,834,615)Other investment income 3,282Investment expense (2,329,550)

Total investment income 128,495

Total additions 24,361,293

DEDUCTIONSBenefits paid:

Retirement 21,713,042Disability 1,058,823Death 1,648,821Deferred retirement option plan 4,243,980

Termination refunds 571,052Administrative expenses 339,491Transfer to other pension trust funds 76,219

Total deductions 29,651,428

Net increase/(decrease) in net position (5,290,135)

NET POSITION RESTRICTED FOR PENSIONSBeginning of year 547,001,840

End of year $ 541,711,705

The notes to the financial statements are an integral part of this statement.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

INDEX

Page

Note 1 The City of Boca Raton 36

Note 2 Summary of Significant Accounting Policies 36

Note 3 Deposits and Investments 47

Note 4 Receivables and Payables 56

Note 5 Encumbrances 57

Note 6 Capital Assets 58

Note 7 Deferred Outflows and Inflows 60

Note 8 System Development Charges (Impact Fees) 61

Note 9 Long-Term Debt 62

Note 10 Employee Retirement Systems 68

Note 11 Other Post Employment Benefits 85

Note 12 Interfund Receivables, Payables and Transfers 88

Note 13 Self Insurance Programs 89

Note 14 Prior Period Adjustment 90

Note 15 Contingent Liabilities 90

Note 16 Boca Raton Community Redevelopment Agency 91

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

1. The City of Boca Raton

The City of Boca Raton, Florida (the City) was incorporated in 1925 and operates under a Charter granted by the Legislature of the State of Florida, Chapter 65-1264, Special Acts, Laws of Florida. The City is governed by an elected City Council (4 members) and an elected Mayor, and provides, under the administration of an appointed City Manager, the following services: public safety, recreation, sanitation, cemetery, streets and traffic engineering, planning and zoning, water and sewer services, animal control, and general administrative services.

2. Summary of Significant Accounting Policies

The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's governmental accounting policies are described below.

A. Reporting Entity

As required by various GASB Statements, the accompanying financial statements present the City and its component unit, an entity for which the City is considered to be financially accountable. The City is financially accountable if the City Council appoints a voting majority of an organization’s governing body and the City is able to impose its will on that organization, or the City has a financial benefit/burden relationship with the organization. Blended component units are, in substance, part of the City’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the City.

Blended Component Unit. The City Council of Boca Raton, Florida created the Boca

Raton Community Redevelopment Agency (CRA) in 1980 as an independent special district by City Resolution No. 162-80. The CRA was established to prepare or have prepared a community redevelopment plan for areas within the City of Boca Raton, which are, determined to be slum or blighted areas, and to carry out the community redevelopment purposes of Part III, Chapter 163, of the Florida Statutes. As a tax increment district, the CRA receives operating revenues from tax increment assessments from three taxing jurisdictions within Palm Beach County. Funds are also provided by private contributions, fees collected, interest income, and the unexpended fund balance from the previous year. The funds of the CRA included within the reporting entity are the Community Redevelopment Agency Mizner Park Revenue Fund (major special revenue fund), Community Redevelopment Agency Operating Fund (nonmajor special revenue fund) and the Community Redevelopment Agency Debt Service Fund (nonmajor debt service fund). During fiscal year 1989, the CRA entered into an interlocal agreement with the City. This agreement called for the City to make a secondary pledge of its excise tax revenues for the CRA's debt. On February 5, 1991,

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

the City, by referendum, adopted a resolution declaring the City Council Members to constitute the Board of Commissioners of the CRA. Under Florida Statute 163.356, this made the CRA a dependent special district of the City. The CRA is reported as a blended component unit since its Board of Commissioners is the same as the governing body of the City, the City Council Members and the City has the financial benefit/burden relationship for the CRA relating to the secondary pledge of the City’s excise (public service) taxes for the CRA’s debt.

Discretely Presented Component Units. There are no discretely presented component units for the City. The Greater Boca Raton Beach and Park District, the Boca Raton Housing Authority and the Boca Raton Airport Authority have not met the established criteria for inclusion as component units and, therefore, are excluded from this report.

B. Government-Wide And Fund Financial Statements The basic financial statements consist of the government-wide financial statements and fund financial statements. Both sets of statements distinguish between the governmental and business-type activities of the City.

Government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements report on the government as a whole and provide a consolidated financial picture of the government. As part of the consolidation process, inter-fund activities are eliminated to avoid distorted financial results. The amounts reported as internal balances represent the residual amounts due between governmental and business-type activities. Fiduciary trust funds of the government are also excluded from this presentation since these resources are not available for general government funding purposes.

The Statement of Net Position reports all financial and capital resources of the City’s governmental and business-type activities. Governmental activities are those supported by taxes and intergovernmental revenues. Business-type activities rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges for goods or services that are recovered directly from customers for services rendered and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds and fiduciary trust funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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Since the governmental fund financial statements are presented on a different measurement focus and basis of accounting than the government-wide statements, a reconciliation is provided which briefly explains the adjustments necessary to reconcile the results of governmental fund accounting to the government-wide presentations. The City’s fiduciary trust funds are presented in the fund financial statements. Since by definition these assets are being held for the benefit of a third party (pension participants) and cannot be used to address activities or obligations of the government, these funds are not incorporated into the government-wide statements. C. Measurement Focus, Basis Of Accounting And Financial Statement

Presentation The government-wide financial statements, the proprietary fund financial statements and the fiduciary trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses reported when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. All governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, public services taxes, franchise taxes and interest income associated with the current fiscal period are susceptible to accrual and are recorded as earned since they are measurable and available. In addition, revenue from Federal, State and local reimbursement type grants for which eligibility requirements have been met and which meet the availability criteria of twelve months have been accrued and recognized as revenues of the period. The City also considers funds due from the Greater Boca Raton Beach and Park District as available if received within a twelve month period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to accrual as revenue of the current period. Licenses and permits, charges for services and miscellaneous revenues are recorded as revenue when received in cash, because they are generally not measurable until actually received.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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D. Governmental Accounting Standards Board (GASB) Pronouncements

The City implemented GASB Statement No. 68 Accounting and Financial Reporting for Pension - an amendment of GASB Statement No. 27 that improves accounting and financial reporting for pensions and enhances the note disclosures and Required Supplementary Information (RSI) for both defined benefit and defined contribution pension plans effective October 1, 2014 and GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB Statement No. 68.

E. Major Funds and Basis of Presentation

The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for using a separate set of self-balancing accounts, which comprise its assets and deferred outflows of resources, liabilities and deferred inflows of resources, fund equities, revenues and expenditures or expenses. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Accounting principles generally accepted in the United States of America set forth minimum criteria (percentage of the assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined), for the determination of major funds. The non-major funds are presented in one column in the fund financial statements. The City reports the following major governmental funds:

The General Fund is the primary operating fund of the City. It accounts for all financial

resources of the general government, except those required to be accounted for in another fund. Revenue is derived primarily from property taxes, utility taxes, state and federal distributions and other intergovernmental revenue. The general operating expenditures, fixed charges and capital outlay costs that are not paid through other funds are paid from the General Fund.

The Community Redevelopment Agency Mizner Park Revenue Fund is used to

account for tax increment revenues assessed on downtown properties and land lease revenues that are used to fund the Mizner Park bond debt service and capital improvements that encourage development in the downtown.

The Five-Year Capital Improvement Program Fund is used to account for various

building, park and street construction projects. Financing is being provided by general tax revenue, bond proceeds, excise tax and interest income.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

The Beach and Park Operations Fund is used to account for beach and park operations reimbursed through an interlocal agreement with the Greater Boca Raton Beach and Park Tax District. The Fund did not meet the minimum criteria for major fund determination during fiscal 2015. However, it will continue to be presented as a major fund for the purpose of consistency and to highlight the operations of the Fund.

The City reports the following major proprietary fund: The Water and Sewer Fund accounts for the provision of water and sewer services to

residents of the City and to some residents of Palm Beach County. Additionally, the City reports the following fund types: Internal Service Funds are used to account for the financing of goods or services

provided by one department to other departments of the City on a cost reimbursement basis. The City’s Internal Service Fund operations include Fleet Management and Information Technology for direct services and Self-Insurance for the provision of employee health, workers’ compensation and property and general liability insurance for the City. The City also has an Internal Service Fund for retirement sustainability to separate funding for certain receipts and expenditures for all of the City's defined benefit plans and accounts for reserves to reduce the financial burden, if any, of retiree defined benefit plan payments on future taxpayers.

Pension Trust Funds account for activities of the City’s General Employees’ Pension

Plan, the Police and Firefighters’ Retirement System and the Executive Employees’ Retirement Plan that accumulate resources for pension benefits and disability benefit payments.

As a general rule the effect of interfund activity has been eliminated from the

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

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. All revenues that are not program revenues are general revenues, and include all taxes, as well as grants, contributions and investment earnings that are not restricted to a particular program.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation and amortization on capital assets. All items not meeting this definition are reported as nonoperating revenues and expenses.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

F. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity

1. Deposits and Investments

The City’s cash and cash equivalents are considered to be cash on hand, demand and time deposits and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, commercial paper, corporate bonds, repurchase agreements, State Treasurer’s Investment Pool and the Florida Municipal Investment Trust.

The City maintains a cash and investment pool that is available for use by all funds.

This pool has deposits and other investments with maturities generally less than one year. In addition, longer-term investments are also held by the investment pool. Pooled cash is classified as "Cash and Cash Equivalents" in the Statement of Net Position and pooled investments are combined with other separate investments and classified as "Investments."

Long-term investments are stated at fair value as required by GASB Statement No. 31 “Accounting and Financial Reporting for Certain Investments and for External Investment Pools.” Investments that have a remaining maturity at the time of purchase, of one year or less, are reported at amortized cost. Interest income earned as a result of pooling is distributed to the appropriate funds based on the month end equity balance in each fund. 2. Receivables and Payables During the course of its operations, the City has numerous transactions between funds to provide goods or render services. To the extent that certain transactions between funds were not paid for or received as of September 30, 2015, balances of interfund receivables and payables expected to be liquidated within one year have been recorded as due from and due to other funds. Balances of interfund receivables and payables not expected to be liquidated within one year are recorded as advances to and advances from other funds. Balances of advances to and from other funds are considered non-spendable fund balances of the respective funds since these balances are not available for appropriation. All trade and other receivables are shown net of an allowance for uncollectibles. Long-term receivables are analyzed for their collectability based on the terms and conditions of the agreements. In addition to those receivables specifically identified as uncollectible, a general allowance is calculated based on the City’s historical bad debt experience. Water and wastewater charges to customers are based on actual water consumption. Consumption is determined on a bi-monthly cycle basis. The City recognizes revenue and a related receivable for the estimated unbilled consumption as of September 30th of each year.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

3. Inventories All inventories are valued at weighted average cost. Perpetual inventory records are maintained and adjusted annually to physical inventory amounts as of September 30th of each year. Inventory is reported using the consumption method whereby inventories are recorded as expenditures/expenses when used. 4. Restricted Assets Certain proceeds of the City’s enterprise fund revenue bonds, as well as certain resources set aside in accordance with bond covenants or local ordinances are classified as restricted assets on the fund level balance sheet. The “operations and maintenance reserve” is used to report resources set aside to subsidize potential deficiencies from the City’s Water and Sewer Utility operations that could adversely affect debt service payments. The “renewal and replacement reserve” is used for the accumulation of resources to provide for replacement of existing system assets. The “debt service reserve” is used for the accumulation of resources needed to meet debt service requirements as they become due. Certain accounts receivable items in the Water and Sewer Fund are restricted to repay debt. Cash and investments of the City’s Perpetual Care Fund are restricted to providing perpetual care for the City’s cemetery and mausoleum. Additionally, cash and investments of the General Trust Fund are restricted as the funds are to be used only for specific purposes. All applicable assets in the enterprise funds and in the governmental funds have been restricted in amounts sufficient to meet restrictive purposes. 5. Capital Assets Capital assets, which include property, plant, equipment, intangible and infrastructure assets (e.g., roads, bridges, lighting systems and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City’s capitalization threshold for tangible capital assets is $5,000 and for intangible assets, including software, is $35,000. In addition, these assets must have an estimated life of greater than one year. A $35,000 threshold is maintained for additions to infrastructure capital assets. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. All infrastructure assets acquired subsequent to June 30, 1980 are reported. Donated capital assets are recorded at estimated fair value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Property, plant, equipment, intangible and infrastructure assets are depreciated using the straight-line method over the following estimated useful lives:

Asset Type Life Building 40 Building improvements 10-50 Roads 40 Bridges 50 Other Infrastructure 10-75 Equipment 3-40 Intangible 5-20

6. Deferred Outflows of Resources The Statement of Net Position includes a separate section, listed below Total Assets, for Deferred Outflows of Resources. This represents the expenses of net position applicable to future periods and will not be recognized as expenses until the future period to which it applies. The City currently reports the net deferred loss on refunding of debt and pension contributions after the measurement date, which will be recognized in the following year. 7. Unearned Revenue Unearned revenue is recorded for governmental fund for items that are measureable and available, but have not met the criteria for revenue recognition, such as unredeemed gift certificates. Local and business taxes are recorded as unearned revenue in the government-wide and the fund statements. 8. Liabilities – Performance Bonds, Escrow for Performance Bonds and Escrow Funds

Liabilities include amounts paid to the City by contractors as guarantees of performance. These amounts may be due back to the contractors.

9. Compensated Absences

It is the City’s policy to permit employees to accumulate earned but unused vacation, sick pay benefits and compensatory time. All vacation, sick pay and compensatory time is accrued when earned in the government-wide and proprietary fund financial statements. A liability for those amounts is reported in governmental funds only if they have matured, as a result of employee resignations or retirements.

10. Long-Term Obligations

In the government-wide financial statements and proprietary fund types of the fund

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

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. Bonds payable are reported net of the applicable premium or discount. These premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method of amortization. Issuance costs are expensed in the year they are incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures in the year they are incurred. 11. Deferred Inflows of Resources

The Statement of Net Position includes a separate section, listed below Total Liabilities, for Deferred Inflows of Resources. This represents the acquisition of net position applicable to future periods and will not be recognized as revenue until the future period to which it applies. Currently, the only item in this category is the difference between the expected and actual pension experience which is amortized over the investment terms of the pension assets. 12. Net Position

Net position is the result of assets and deferred outflows of resources, less liabilities and deferred inflows of resources. The net position of the government-wide and proprietary funds are categorized as net investment in capital assets, reduced by accumulated depreciation and any outstanding debt and related deferred outflows incurred to acquire, construct or improve those assets excluding unexpended bond proceeds, restricted or unrestricted. The first category represents net position related to property, plant, equipment and infrastructure. When an expenditure is incurred for purposes for which both restricted and unrestricted net position is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned net position are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has provided otherwise in its commitment or assignment actions by either an ordinance or resolution. The restricted category represents the balance of assets restricted by requirements of revenue bonds and other externally imposed constraints or by legislation in excess of the related liabilities payable from restricted assets. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

13. Fund Balance

The City classifies fund balance in accordance with GASB Statement No. 54 “Fund Balance Reporting and Governmental Fund Type Definitions.” This Statement enhances the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The City reports the following fund classifications: Nonspendable fund balance. Nonspendable fund balances are amounts that cannot be spent because they are either not in spendable form such as inventory or legally or contractually required to be maintained intact such as a perpetual trust. Restricted fund balance. Restricted fund balances are amounts that are constrained by the imposition externally by creditors, grantors, contributors, or laws or regulations of other governmental agencies or imposed by law through constitutional provisions or enabling legislation. Committed fund balance. Those amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council through an ordinance or resolution (which are equally binding as the highest decision-making authority) are classified as committed fund balances. Assigned fund balance. Amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed are classified as assigned fund balances. Assignments are recommended by the City Manager, based on the City Council direction during the annual budget process, and the City Council authorizes assignments by the adoption of a resolution. Unassigned fund balance. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The City’s policy is to maintain an adequate General Fund fund balance to provide liquidity in the event of an economic downturn or natural disaster. The City Council adopted a Fund Balance Policy by Resolution No. 137-2009 which is a financial standard to maintain a General Fund minimum unassigned fund balance of 10 percent of budgeted expenditures. As part of the annual budget adoption process, which is accomplished through an ordinance, the City Council reviews the fund balance commitments. Any action to establish, modify or rescind fund balance classifications would be taken through the adoption of an ordinance approved by City Council.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

G. Other Policies

1. Property Taxes Calendar of Property Tax Events

January 1, 2014 – Property taxes are based on assessed property value at this date as determined by the Palm Beach County Property Appraiser.

May 31, 2014 – Property assessment roll and certificates of value by the Palm Beach County Property Appraiser are provided to the City.

July 22, 2014 – Proposed tax millage rate approved by the City Council and provided to the Palm Beach County Property Appraiser, who mails notices to the taxpayers.

September 24, 2014 – Property tax millage rate ordinance approved by the City Council. October 1, 2014 – Beginning of fiscal year for which taxes are levied. December 31, 2014 – The Palm Beach County Property Appraiser notifies the City of the

taxable value on the final property tax assessment roll. April 1, 2015 – Unpaid property taxes become delinquent and become a lien. June 1, 2015 – Tax certificates are sold by the Palm Beach County Tax Collector.

Property Tax Collection Property tax collections are governed by Chapter 197, Florida Statutes. The Palm

Beach County Tax Collector (Tax Collector) bills and collects all property taxes levied within the County. Discounts are allowed for early payment of 4% in November, 3% in December, 2% in January and 1% in February. If property taxes are not paid by April 1, the County adds a 3% penalty on real estate and a 1 ½% penalty on personal property.

The Tax Collector advertises and sells tax certificates on all real property for delinquent

taxes. Certificates not sold revert back to the County. The Tax Collector must receive payment before the certificates are issued. Any person owning land on which a tax certificate has been sold may redeem the land by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. The owner of a tax certificate may at any time after taxes have been delinquent (April 1), for two years, file an application for a tax deed sale. The County, as a certificate owner, may exercise similar procedures two years after taxes have been delinquent. Tax deeds are issued to the highest bidder for the property which is sold at public auction.

The Tax Collector remits current taxes collected through four distributions to the City in

the first two months of the tax year and at least one distribution each month thereafter. The City recognizes property tax revenue in the period in which they are levied. The Tax Collector pays the City interest on monies held from day of collection to day of distribution. The City has no control over the investment program of the Tax Collector as this program is governed by State statutes.

Property Tax Limitation The City is permitted by state statutes to levy taxes up to 10 mills of assessed value.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

The total millage rate levied by the City for the fiscal year ended September 30, 2015, was 3.680. Current tax collections for the City were approximately 97% of the total tax levy.

2. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

3. Encumbrances Budgets in governmental funds are encumbered upon issuance of purchase orders,

contracts or other forms of legal commitments. While appropriations lapse at the end of the fiscal year, the succeeding year's budget ordinance specifically provides for the re-appropriation of year-end encumbrances.

3. Deposits and Investments General Authorization:

Cash and cash equivalents include cash on hand, amounts in demand and time deposits and short-term investments with original maturity dates within three months of the date acquired by the City. All of the City’s deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral of the depository to be held subject to his or her order. The Treasurer, by rule, shall establish minimum required collateral pledging levels. The pledging level may range from 25% to 200% of the average monthly balance of public deposits depending upon the depository’s financial condition and establishment period. All collateral must be deposited with an approved financial institution. Any potential losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. The City's investment practices are governed by Chapter 280 and 218, Florida Statutes, City Code of Ordinances, Section 20, the adopted investment policy, and various legal covenants related to outstanding bond issues. For all investments authorized by statute and policy, the City applies the "Prudent Man Rule" when developing investment strategies.

Types of Investments:

The City is authorized to invest in a wide range of securities that include certificates of

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

deposit, money market funds, U.S. Treasury obligations, State and U.S. Government Agencies and Enterprises, State and Local Government Series, the State Board of Administration investment pool, the Florida Municipal Investment Trust, mutual funds and repurchase agreements. The City uses only financial institutions qualified as public depositories by the State of Florida or "approved" security dealers to place its investments unless bond covenants specifically require other financial institutions to be used. In addition to the investments above, the Pension trust funds are authorized to invest in corporate bonds; real estate; and domestic, international, convertible, commingled, common and preferred stock. The State Board of Administration (SBA) administers the Florida PRIME governed by Chapter 19-7 of the Florida Administrative Code and Chapters 218 and 215 of the Florida Statutes. These rules provide guidance and establish the policies and general operating procedures for the administration of the Florida PRIME. The Florida PRIME is not a registrant with the Securities and Exchange Commission (SEC); however, the Board has adopted operating procedures consistent with the requirements for a 2a-7 fund, which permits money market funds to use amortized cost to maintain a constant net asset value (NAV) of $1 per share. The fair value of the position in the Florida PRIME is equal to the value of the pool shares.

The Florida Municipal Investment Trust (Municipal Trust) was created under the laws of the State of Florida to provide eligible units of local government with an investment vehicle to pool their surplus funds and to reinvest such funds in one or more investment portfolios under the direction and daily supervision of an investment advisor. The Florida League of Cities serves as the administrator, investment manager and secretary-treasurer of the Trust. The Municipal Trust is not a registrant with the Securities and Exchange Commission (SEC); however the Board has adopted operating procedures consistent with the requirements for a “2a-7 like” pool.

Violations: There were no violations of the legal or contractual provisions for deposits and

investments.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

a. City of Boca Raton

At September 30, 2015, the City of Boca Raton had the following cash, cash equivalents and investments:

Portfolio/Investments Fair Value Weighted Average Maturity

Credit Rating Percent

Distribution

Cash Deposits $ 246,050,133 70.68%

State Board of Administration - Florida PRIME 315,132 29 days AAAm S&P 0.09%

Total Cash & Cash Equivalents 246,365,265 70.77%

FMIVT 0-2 Year High Quality Bond Fund 25,673,807 .705 years AAA/V1 7.37%

FMIVT 1-3 Year High Quality Bond Fund 13,199,880 1.49 years AAA/V2 3.79%

FMIVT Intermediate High Quality Bond Fund 13,773,406 3.96 years AAA/V3 3.96%

U.S. Treasury Notes

U.S. Government Sponsored Enterprises: 3.05 years

Federal National Mortgage Association 16,021,700 4.60%

Federal Home Loan Mortgage Corporation 9,015,970 2.59%

Federal Home Loan Bank 6,964,030 2.00%

Federal Farm Credit Bank 5,000,000 1.44%

Certificates of Deposit 12,109,496 3.48%

Total Investments 101,758,289 29.23%

Total Cash & Investments $ 348,123,554 100.00%

Interest Rate Risk

Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect an investment’s fair value. The City’s investment policy limits investments to those having a maturity, at the time of purchase, of less than five years. There were no investments in the City’s portfolio that exceeded this maximum maturity at September 30, 2015. Credit Risk Credit risk exists when there is a possibility the issuer or other counter-party to an investment may be unable to fulfill its obligations. The City’s investment policy allows investments in U.S. Government sponsored agencies and enterprises, the State Board of Administration investment pool, and the Florida Municipal Investment Trust. The ratings of the investments held at year end are shown above. All are rated within the policy guidelines.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Concentration of Credit Risk In addition to describing the credit risk of investments in the portfolio, governmental entities need to disclose the concentration of any single investment type or holding per single issuer. The percentage allocation of each cash investment type in the portfolio is shown in the preceding table. The City’s investment policy allows investment concentrations in various percentages for different types of investments. GASB Statement No. 40 requires disclosures when the percent is 5% or more in any one issuer. As of September 30, 2015, all investments were within the allowable percentages. Custodial Risk The City’s investment policy requires that all securities, with the exception of certificates of deposit, be held with a third party custodian. Security transactions between a broker/dealer and the custodian involving the purchase or sale of securities by transfer of money or securities are made on a “delivery vs. payment” basis to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. As of September 30, 2015, the City’s investment portfolio was held with a third-party custodian. b. Executive Employees’ Retirement Plan

At September 30, 2015, the Executive Employee’s Retirement Plan (EERP) invested in

securities and fixed income investments listed as follows:

Portfolio/Investments Fair Value Weighted Average Maturity

Credit Rating Percent

Distribution

Cash Deposits $ 259,495 .80%

Core Plus Fixed Income 5,741,320 5.41 years Not rated 17.70%

FMIvT Broad Market High Quality Bond Fund 3,924,857 AA/V4 Fitch 12.10%

FMIvT Market High Quality Growth Portfolio 3,113,936 5.98 years Not rated 9.60%

FMIvT Large Cap Diversified Value Portfolio 2,822,004 Not rated 8.70% FMIvT Russell 1000 Enhanced Index Portfolio 9,114,750 Not rated 28.10%

FMIvT Diversified Small Cap Equity Portfolio 4,378,973 Not rated 13.50%

FMIvT International Portfolio 3,081,499 Not rated 9.50%

Total Investments 32,177,339 99.20%

Total Cash & Investments $ 32,436,834 100.00%

Interest Rate Risk

Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect an investment’s fair value. The EERP has a maximum maturity at purchase of 180 days with a total average maturity, at any point in time, for all

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

repurchase agreements held of not greater than 60 days. Bankers’ Acceptances maximum maturity shall not exceed 270 days from the time of purchase. Nonnegotiable certificates of deposit shall not exceed 2 years. No investments held in the portfolio exceed these limits. Credit Risk The EERP allows investments in rated investments in Commercial Paper with A1/P1 or a comparable rating as provided by two of the top nationally recognized statistical rating organizations; and that the corporation’s long-term debt, if any, is rated at least A1/A+ by a nationally recognized statistical rating organization or, if backed by a letter of credit (LOC), the long-term debt of the LOC provider must be rated at least AA (or comparable rating) by at least two of the nationally recognized statistical rating agencies publishing ratings for financial institutions. Banker’s Acceptances issued with the U.S. by institutions with a long-term debt rating of at least AA or short term debt rating of P1 (or comparable rating) as provided by one nationally recognized statistical rating organization. Nonnegotiable Certificates of Deposit must be rated at least A1/P1 (or comparable rating) and a long-term rating of a least A (or comparable rating) as provided by two of the top nationally recognized rating agencies. Guaranteed Investment Contracts must be rated in the highest category by AM Best Rating System or a comparable nationally recognized statistical rating organization. All investments held in the portfolio meet these requirements. Concentration of Credit Risk The EERP allows no more than $5 million in certificates of deposit with any one depository at one time. Corporate fixed income securities are limited to no more than 5% of any one corporation at the time of purchase. No more than $10 million in investment agreements with other financial institutions may be entered into with any one financial institution. GASB No. 40 requires disclosures when the percent is 5% or more in any one issuer. As of September 30, 2015, all investments were within the allowable limits.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

c. General Employees’ Pension Plan

At September 30, 2015, the General Employees’ Pension Plan’s (the Plan) portfolio consisted of the following securities and fixed income investments:

Portfolio/Investments Fair Value Weighted Average Maturity

Credit Rating Percent

Distribution

Cash Deposits $ 351,891 0.18%Short-term securities 7,490,162 Aaa Moody's 3.86%Total Cash & Cash Equivalents 7,842,053 4.04% U.S. Government Securities: U.S. Treasury Securities: U.S. Treasury Notes Index Linked 5,074,233 5.61 years Aaa Moody’s 2.61%U.S. Treasury Bonds 6,428,730 7.98 years 3.31%U.S. Government Sponsored Agencies: Government Mortgage Backed Securities: 14.05 years Federal National Mortgage Association 863,982 Aaa Moody’s 0.45% Government National Mortgage Association 163,772 Aaa Moody’s 0.08% Federal Home Loan Mortgage Corporation 656,007 Aaa Moody’s 0.34% Corporate Bonds & Debentures: Corporate Obligations: 3.45 years Bonds 3,949,413 Aa Moody’s 2.03% Bonds 19,860,003 A Moody’s 10.23% Bonds 10,598,594 Baa Moody’s 5.46%Commercial Mortgage Backed Securities (CMBS) CMBS 396,231 33.48 years Aaa Moody’s 0.20% Government Issued CMBS 663,286 6.07 years Aaa Moody’s 0.34%Preferred Stock 242,604 0.12%Common Stock 73,027,510 37.61%Corporate Convertible Bonds 9,675,405 8.20 years 4.98%Convertible Equity 2,069,886 1.07%Real Estate Direct Investment Partnership 12,082,187 6.22%Real Estate Investment Trust 6,960,861 3.59%International Equity Fund 9,663,204 4.98%Domestic Equity Fund 23,928,376 12.32%Total Investments 186,304,284 95.96%Total Cash & Investments $ 194,146,337 100.00%

Government agency and treasury securities are not rated but have an implied Aaa rating from Moody’s Investor Service and Fitch and an implied Aa+ rating from Standard & Poor’s.

Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect fair value of an investment in debt securities. Generally, the longer the time to maturity, the greater the exposure to interest-rate risk. The established performance objectives require investment maturities to provide sufficient liquidity to pay obligations as they become due. Treasury inflation indexed securities are limited to ten year maturities. At September 30, 2015, the weighted average maturity in years for each investment type is included in the preceding table.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Credit Risk

Credit risk is the risk that a debt issuer will not fulfill its obligations. The Plan utilizes portfolio diversification in order to limit investments to the highest rated securities as rated by nationally recognized rating agencies. The investment policy limits credit risk by requiring fixed income securities to have a minimum rating by two of the three major credit rating agencies. The minimum rating for corporate bonds is by Moody's as Baa2 or by Standard & Poor’s/Fitch as BBB or better. The policy requires short-term commercial paper/bankers acceptances to be rated, at a minimum, by Moody's as P-1, by Standard & Poor’s as A-1 or by Fitch as F-1 with the issuer having a long-term debt rating of A. Commercial mortgage backed and asset backed securities are required to be rated by Moody’s/Standard & Poor’s or Fitch as Aaa/AAA. Further, the investment policy does not permit private mortgages or tax exempt bonds. At September 30, 2015, for those where ratings are available, the portfolio met the credit rating limitations of the investment policy. Concentration of Credit Risk

Concentration of credit risk is defined as the risk of loss attributed to the magnitude of an investment in a single issuer. The Plan utilizes limitations on securities of a single issuer to manage this risk. The investment policy requires that corporate bond issues cannot represent more than 2.0% of the total bond portfolio. The policy further requires that corporate bond issues rated below A3/A- by Moody's/Standard & Poor's cannot represent more than 20% of the total bond portfolio. GASB Statement No. 40 requires disclosures when the percent is 5% or more in any one issuer. As of September 30, 2015, all investments were within the allowable percentages. Custodial Credit Risk

Custodial credit risk is defined as the risk that the plan may not recover cash and investments held by another party in the event of financial failure. Custodial credit risk is limited since investments are held in independent custodial safekeeping accounts or mutual funds. Foreign Currency Risk

Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. The investment policy does not permit general obligations issued by a foreign government and is therefore, not exposed to foreign currency risk.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

d. Police and Firefighter’s Retirement System

At September 30, 2015, the Police and Firefighter’s Retirement System invested in the following securities and fixed income investments:

Portfolio/Investments Fair Value Weighted Average Maturity

Credit Rating Percent

Distribution

Cash Deposits $ 1,031,005 0.33%

Short-Term Securities 4,150,630 Aa2 Moody's 1.31%

Total Cash and Cash Equivalents 5,181,635 1.64%

U.S. Government Securities U.S. Treasury Securities: 17.53 years U.S. Treasury Notes 2,372,855 Aaa Moody's 0.75%

U.S. Treasury Bonds 2,736,373 Aaa Moody's 0.86%

U.S. Government Sponsored Agencies:

Government Mortgage Backed Securities: 25.34 years Federal National Mortgage Association 12,721,982 Aaa Moody's 4.02%

Government National Mortgage Association 4,923,488 Aaa Moody's 1.55%

Federal Home Loan Mortgage Corporation 2,640,136 Aaa Moody's 0.83%

Corporate Bonds & Debentures: Corporate Obligations: 8.45 years Bonds 170,937 Aaa Moody's 0.05%

Bonds 1,383,451 Aa Moody's 0.44%

Bonds 10,090,255 A Moody's 3.19% Bonds 9,194,790 Baa Moody's 2.91% Commercial Mortgage Backed Securities (CMBS): 31.27 years CMBS 1,611,178 Aaa Moody's 0.51% CMBS 714,992 Not rated 0.23% Asset Backed Securities: 3.79 years ABS 1,976,317 Aaa Moody's 0.62% ABS 312,463 Aa Moody's 0.10% ABS 988,548 Not rated 0.31% Common Stock 121,087,612 38.23%

Real Estate Direct Investment Partnership 29,492,490 9.31%

Commingled Funds:

Mutual Funds 25,128,241 7.93%

Long/Short Equity Funds 46,669,115 14.74%

International Equity Funds 30,565,282 9.65%

High Yield Fixed Income Fund 6,732,266 Not rated 2.13%

Total Investments 311,512,771 98.36%

Total Cash & Investments $ 316,694,406 100.00%

Government agency and treasury securities are not rated but have an implied Aaa rating from Moody’s Investor Service and Fitch and an implied Aa+ rating from Standard & Poor’s. Interest Rate Risk

Interest rate risk is the risk that changes in interest rates will adversely affect fair value of an investment in debt securities. Generally, the longer the time to maturity, the greater

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

the exposure to interest-rate risk. The established performance objectives require investment maturities to match anticipated cash flow requirements in order to pay obligations when due. At September 30, 2015, the weighted average maturity in years for each investment type is included in the preceding table. Credit Risk

Credit risk is the risk that a debt issuer will not fulfill its obligations. The Plan utilizes portfolio diversification in order to limit investments to the highest rated securities as rated by nationally recognized rating agencies. The investment policy limits credit risk by requiring fixed income securities to maintain a weighted average credit quality rating of A or better. The policy further limits high yield fixed income securities to 20% of the portfolio. The investment policy does not permit private placement bonds, except for Rule 144A securities of U.S. issuers which are limited to five percent of the portfolio. At September 30, 2015, for those where ratings are available, the portfolio met the credit rating limitations of the policy. Concentration of Credit Risk

Concentration of credit risk is defined as the risk of loss attributed to the magnitude of an investment in a single issuer. The Plan utilizes limitations on securities of a single issuer to manage this risk. The investment policy requires that corporate bond issues cannot represent more than five percent of the fair value of the portfolio. GASB Statement No. 40 requires disclosures when the percent is 5% or more in any one issuer. At September 30, 2015, the portfolio met the corporate single issuer limitation of the policy and all investments were within the allowable percentages. Custodial Credit Risk

Custodial credit risk is defined as the risk that the plan may not recover cash and investments held by another party in the event of financial failure. Custodial credit risk is limited since investments are held in independent custodial safekeeping accounts or mutual funds.

Foreign Currency Risk

Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. The investment policy permits a maximum of 10% of the fair value of the fixed income portfolio to be invested in Yankee securities (foreign issuers of U.S. dollar-denominated debt). At September 30, 2015, less than 8% of the fair value of the fixed income portfolio was invested in Yankee securities, which met the limitations of the policy. The Plan is not subject to foreign currency risk.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

e. Risks and Uncertainties – Pension Trust Funds

The Plans invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and, that such changes could materially affect the amounts reported in the statement of fiduciary net position for each Plan. The Plans, through their investment advisors, monitor Plan investments and the risks associated therewith on a regular basis which each Plan believes minimizes these risks. Contributions to the Plans are made and the actuarial present value of accumulated plan benefits are reported based on certain assumptions pertaining to interest rates, inflation rates and employee demographics, all of which are subject to change. Due to uncertainties inherent in the estimations and assumptions process, it is at least reasonably possible that changes in these estimates and assumptions in the near term would be material to the financial statements.

4. Receivables and Payables

Receivables as of the fiscal year-end for the City’s individual major and non-major funds, and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

Governmental

General

Community Redevelopment Agency/Mizner Park Revenue

Five Year Capital

Improvement

GreaterBoca Raton

Beach & Park District

Other Governmental

Internal Services

Total

Receivables: Accounts $ 3,852,798 4,660 $ 1,090 $ 58,542 $ 183,125 $ 4,100,215 Assessments 129,352 129,352 Lease revenues $ 13,023,846 13,023,846 Interest 17,427 795 $ 3,725 15,321 18,599 55,867 Net governmental receivables $ 3,870,225 $ 13,024,641 $ 8,385 $ 1,090 $ 203,215 $ 201,724 $ 17,309,280

Receivables for the City’s business-type activities, including individual major funds and allowances for uncollectible accounts are as follows:

Business-type Water & Sewer

Other Enterprise

Total

Receivables: Accounts $ 7,201,455 $ 1,644,304 $ 8,845,759 Allowance for uncollectibles (210,600) (164,239) (374,839) Assessments 2,129,851 2,129,851 Interest on assessments 70,971 70,971 Interest on investments 34,335 4,509 38,844 Net business-type receivables $ 9,226,012 $ 1,484,574 $ 10,710,586

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Accounts payable and accrued liabilities as of fiscal year-end for the City’s individual major and non-major funds, and internal service funds in the aggregate, are as follows:

Governmental General Five Year Capital

Improvement

Beach and Park

Operations

Other Governmental

Internal Services

Total

Payables: Vendors $ 1,220,986 $ 297,334 $ 131,338 $ 219,890 $ 1,994,630 $ 3,864,178 Salaries and benefits 4,944,372 450,316 104,719 343,875 5,843,282 Governmental payables $ 6,165,358 $ 297,334 $ 581,654 $ 324,609 $ 2,338,505 $ 9,707,460

Accounts payable and accrued liabilities for the City’s business-type activities, including individual major funds, are as follows:

Business-type Water &

Sewer Other

Enterprise Total

Payables: Vendors $ 1,533,881 $ 205,865 $ 1,739,746 Salaries and benefits 651,289 251,267 902,556 Business-type payables $ 2,185,170 $ 457,132 $ 2,642,302

5. Encumbrances

Purchase orders are issued throughout the fiscal year to encumber budgets in the governmental funds. Significant encumbrances from fiscal year 2015 that were re-appropriated on October 1, 2015 were: Major funds:

General Fund $ 1,049,307

Five Year Capital Improvement Fund 3,819,641

Total Major funds 4,868,948

Non-Major Governmental Funds 1,848,764

Total Encumbrances $ 6,717,712

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

6. Capital Assets

The following is a summary of capital asset activity for the fiscal year ended September 30, 2015:

Governmental activities: Beginning Balance

Additions Deletions

Ending Balance

Capital assets not being depreciated/amortized: Land $ 138,135,702 $ 138,135,702 Construction in progress 1,494,917 $ 540,400 $ 745,457 1,289,860 Total capital assets not being depreciated/amortized 139,630,619

540,400

745,457

139,425,562

Capital assets being depreciated/amortized: Buildings 92,665,471 439,706 828,224 92,276,953 Improvements other than buildings 50,212,062 85,375 587,503 49,709,934 Equipment 52,162,580 2,563,606 1,491,490 53,234,696 Intangible 2,624,987 157,519 2,467,468 Infrastructure 375,467,424 305,750 375,773,174 Total capital assets being depreciated/amortized 573,132,524 3,394,437 3,064,736 573,462,225 Less accumulated depreciation/amortization for: Buildings 30,846,342 2,651,514 95,394 33,402,462 Improvements other than buildings 26,429,410 1,794,452 533,350 27,690,512 Equipment 36,354,919 4,147,742 1,486,579 39,016,082 Intangible 2,356,567 81,489 157,519 2,280,537 Infrastructure 194,009,940 9,325,147 203,335,087 Total accumulated depreciation/amortization 289,997,178 18,000,344 2,272,842 305,724,680 Total capital assets being depreciated/amortized, net 283,135,346

(14,605,907)

791,894

267,737,545

Governmental activities capital assets, net $ 422,765,965 $ (14,605,907) $ 1,537,351 $ 407,163,107

Business-type activities: Beginning Balance

Additions Deletions

Ending Balance

Water and sewer Capital assets not being depreciated/amortized: Land $ 245,873 $ 245,873 Construction in progress 33,542,708 $ 7,289,156 $ 25,529,239 15,302,625 Total capital assets not being depreciated/amortized 33,788,581 7,289,156 25,529,239

15,548,498

Capital assets being depreciated/amortized: Utility plant in service 350,843,156 23,175,669 2,083,413 371,935,412 Equipment 46,109,508 3,513,224 149,065 49,473,667 Intangible 3,541,626 3,541,626 Total capital assets being depreciated/amortized 400,494,290 26,688,893 2,232,478 424,950,705 Less accumulated depreciation/amortization for: Utility plant in service 167,380,550 11,665,220 2,083,411 176,962,359 Equipment 23,184,663 2,134,344 149,065 25,169,942 Intangible 952,192 173,593 1,125,785 Total accumulated depreciation/amortization 191,517,405 13,973,157 2,232,476 203,258,086 Total capital assets being depreciated/amortized, net 208,976,885 12,715,736 2

221,692,619

Total water and sewer capital assets, net $ 242,765,466 $ 20,004,892 $ 25,529,241 $ 237,241,117

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Non-major funds, business-type activities Beginning Balance

Additions

Deletions

Ending Balance

Capital assets not being depreciated: Land $ 586,735 $ 586,735 Construction in progress 762,316 - $ 762,316 -Total capital assets not being depreciated 1,349,051 - 762,316 586,735 Capital assets being depreciated: Buildings 2,259,661 2,259,661 Improvements other than buildings 20,105,407 $ 762,317 20,867,724 Equipment 9,305,594 234,252 452,277 9,087,569 Total capital assets being depreciated 31,670,662 996,569 452,277 32,214,954 Less accumulated depreciation for: Buildings 1,521,615 59,220 1,580,835 Improvements other than buildings 5,793,724 638,238 6,431,962 Equipment 5,308,769 786,743 354,262 5,741,250 Total accumulated depreciation 12,624,108 1,484,201 354,262 13,754,047 Total capital assets being depreciated, net 19,046,554 (487,632) 98,015 18,460,907 Total non-major funds, capital assets, net 20,395,605 (487,632) 860,331 19,047,642 Total business-type activities, capital assets, net $ 263,161,071 $ 19,517,260 $ 26,389,572

$ 256,288,759

Depreciation/amortization expense was charged to function / programs of the primary government as follows: Depr & Amort

Expense Governmental activities: General government $ 403,604 Law enforcement 924,235 Fire rescue 1,558,927 Physical environment 6,326

Transportation, including depreciation of general infrastructure assets 10,301,443

Community development 120,912 Parks and recreation 2,396,339 Sub Total 15,711,786 Depreciation and amortization of the capital assets held by the government’s Internal Service Funds are charged to the various functions based on their usage of the assets 2,288,558 Total depreciation/amortization expense, governmental activities $ 18,000,344

Business-type activities: Water and Sewer depreciation $ 13,799,564 Water and Sewer amortization 173,593 Total Water and Sewer 13,973,157 Cemetery 66,855 Golf course 107,979 Stormwater utility 664,673 Sanitation 644,691 Total depreciation and amortization expense, business-type activities 15,457,355 Total government wide depreciation and amortization expense $ 33,457,699

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Construction and Purchase Commitments: The City has active construction projects as of September 30, 2015. The projects include

street and traffic projects and various water, wastewater and drainage projects. In addition, the City has outstanding purchase commitments for engineering and design services. At fiscal year-end, the City’s significant commitments with contractors are as follows:

Project Spent to-date

Remaining

Commitment Street and traffic projects $ 7,361,135 $ 1,584,145 Water, wastewater and drainage projects 58,502,138 16,780,602 Total $ 65,863,273 $ 18,364,747

The water and sewer improvements are financed through revenue bonds from system

revenues. All other commitments are financed from existing City resources. 7. Deferred Outflows and Inflows

Deferred outflows and inflows as of the fiscal year-end as presented on the City's fund-level and government-wide statements in the aggregate, are as follows:

Deferred Outflows:

Fund-Level Statements

Government-Wide Statements

Deferred charge on refunding of bonds $ 2,731,256 Pension advance contributions $ 1,908,242 1,908,242 Pension contributions 380,407 14,827,304

Total deferred outflows $ 2,288,649 $ 16,735,546  

Deferred Inflows:

Fund-Level Statements

Government-Wide Statements

Communication service taxes $ 73,951 Lease revenues 13,023,846 Deferred inflows for pensions 459,910 $ 9,013,149

Total deferred outflows $ 13,557,707 $ 9,013,149  

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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8. System Development Charges (Impact Fees) System development charges are fees designed to recover the cost of providing

capacity for new customers. The fees represent a major source of financing for the Water and Sewer System (System) and will provide a significant portion of the debt service coverage for the 2008 and 2009 Revenue Bonds. A Florida State Supreme Court decision outlined the basic requirements of an equitable System Development Charge structure. These requirements are as follows:

System development charges must reflect a pro rata share of the cost of new

capacity. System development charges revenue may be applied only to capital projects

expressly designed to expand System capacity. Anticipated system development charge revenues may not exceed the costs to

be incurred by the municipality in expanding capacity to accommodate new users of the System.

The City’s system development charge structure, implemented in 1980, was designed to

comply with this decision. Compliance is achieved in the following manner:

The Consulting Engineers have reviewed the proposed Capital Improvement Program and identified the expansion portions of the program directed as providing capacity for growth.

The debt service associated with the cost of providing for this growth will be met through system development charges from new customers and the capital recovery portion of the rates paid by new customers.

System development charge revenues will be utilized solely for meeting the construction costs or annual debt service or for early retirement of debt specifically designated for System expansion.

A computerized model has been developed to verify the validity of this approach. It is

the City's intent to utilize this model to make necessary adjustments in the system development charge schedule from time to time to ensure that compliance with fee objectives is maintained.

The City has classified system development charges as capital contributions (non-

operating revenue) as the fees are revenues which are incidental to the Water and Sewer Enterprise Fund's primary service activities which are provision of potable water and processing of wastewater.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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9. Long Term Debt

A. General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and

construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the City as a whole and not its individual funds. In each year that debt is outstanding, an ad valorem tax is levied equal to principal and interest due. No reserves are maintained. These bonds generally are issued as 20-year serial bonds.

B. Enterprise Funds Revenue Bonds and Defeasance of Debt

The City issues bonds where the City pledges income derived from the operations of the water and sewer system and a system development charge of the water and sewer system to pay debt service. On June 19, 2015, the City issued Water/Sewer Revenue Bonds, Series 2015 in the amount of $15,555,000 to refund a portion of the Water/Sewer Revenue Bonds, Series 2008. The Series 2015 refunded bonds are subject to redemption and are maturing from October 1, 2018 through October 1, 2027. The proceeds of the Series 2015 bonds were deposited with an escrow agent in an irrevocable trust to be used solely for satisfying scheduled payments of the defeased Series 2008 Refunding Bonds. As a result of this refunding, $14,405,000 of the 2008 Refunding Bonds are considered to be defeased in substance for accounting and financial reporting purposes and the liability has been removed from the City's financial statements. This advance refunding reduced total debt service payments by $1,078,490, with a net present value of $946,358. The amount of defeased bonds as of September 30, 2015 was $14,405,000.

C. Governmental Activities Revenue Bonds The City issues bonds where the City pledges revenues from non-ad valorem revenues. D. Special Assessment Bonds

The City issues special assessment debt to finance capital improvements in the Downtown District where both principal and interest are payable from pledged funds, which consist of special assessment proceeds on the benefitted property owners in the Downtown District. In the event that the pledged funds are insufficient to make the debt service payments, the City has committed to make an annual appropriation of available non-ad valorem revenues to make up any deficiencies.

On September 8, 2014 the City Council adopted Resolution 094-2014, which equalized

and adopted the special assessment roll for the Downtown Special Assessment and established the special assessment amounts due January 1, 2015. During the fiscal year, the City assessed $1,462,891 and collected $1,457,843 which was 99.65% of the assessment levied.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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E. Tax Increment Revenue Bonds The Boca Raton Community Redevelopment Agency (CRA or Agency) issued tax

increment revenue bonds to fund capital projects at Mizner Park. The Agency bonds are secured by a pledge of, and lien on, the pledged revenues as provided in the Agency resolution and on the deficiency payments received by the Agency pursuant to the Interlocal Agreement with the City. Pledged revenues consist of tax increment revenues and future land lease revenues of the Agency and the public service taxes (deficiency payments) of the City. In the event sufficient savings from the issuance of the Agency Bonds are realized, the Agency may use such savings to finance capital projects in Mizner Park, which would constitute public infrastructure or park improvements.

F. Outstanding Debt Governmental activitiestemp bonds and loans outstanding at September 30, 2015

consist of the following:

Governmental activities Purpose of

Issue Amount Issued

Amount Outstanding Interest Rate

Maximum Annual Debt

Service General Obligation Bonds:

Series 2010 Downtown Library $ 9,225,000 $ 7,560,000 3.00 – 4.00% 670,700

Series 2011 Refunding Fire Projects 9,525,000 7,055,000 2.00 – 5.00% 1,223,500 Series 2011 Refunding Library Projects 6,060,000 4,305,000 2.00 – 3.00% 685,300

Series 2014 Refunding

Paying & defeasing the 2004 bonds 12,560,000 10,425,000 1.520% 2,184,828

37,370,000 29,345,000 Special Assessment Bonds: Series 2009, Refunding Refunding 11,205,000 6,800,000 2.00 – 4.25% 1,162,388 Series 2010 Improvement 3,705,000 3,220,000 2.00 – 4.125% 286,769 14,910,000 10,020,000 Tax Increment Revenue Bonds: Series 1998, Refunding Refunding 72,560,168 24,197,700 * 3.60 – 5.00% 6,620,000 Total for Governmental Activities $ 124,840,168 $ 63,562,700

*Includes $13,719,897 of accreted interest on Capital Appreciation Bonds

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Business-type activities bonds outstanding at September 30, 2015 consist of the following:

Business-type activities Purpose of

Issue Amount Issued

Amount Outstanding Interest Rate

Maximum Annual Debt

Service Utility system revenue bonds: Series 2008 Refunding $ 40,040,000 $ 14,945,000 3.00 – 5.00% $ 3,390,500 Series 2009 Refunding 8,485,000 3,845,000 2.50 – 4.00% 1,031,684 Series 2015 Refunding 15,555,000 15,555,000 2.26% 1,703,225 Total for Business-type Activities $ 64,080,000 $ 34,345,000

Long-term liability activity for the fiscal year ended September 30, 2015 was as follows:

Governmental activities

Restated Beginning Balance Additions Reductions

Ending Balances

Due Within One Year

Bonds and notes payable: General obligation bonds $ 33,105,000 $ 3,760,000 $ 29,345,000 $ 3,850,000 Tax increment revenue bonds 13,465,168 2,987,363 10,477,805 2,815,486 Special assessment bonds 10,995,000 975,000 10,020,000 1,015,000 Net premium on bonds 1,952,144 216,927 1,735,217 Accretion 16,089,472 $ 1,298,062 3,667,637 13,719,897 Total bonds and loans payable, net 75,606,784 1,298,062 11,606,927 65,297,919 7,680,486 Compensated absences 14,888,148 4,714,688 4,541,402 15,061,434 1,506,143 Net OPEB obligation 1,676,969 185,428 1,862,397 Net pension liability 107,340,891 96,626,637 107,340,891 96,626,637 Estimated liability for self-insurance losses 8,488,000 9,746,271 9,138,271 9,096,000 2,575,000

Total governmental activities, long-term liabilities $ 208,000,792 $ 112,571,086 $ 132,627,491 $ 187,944,387 $ 11,761,629

Business-type activities

Restated Beginning Balance Additions Reductions

Ending Balances

Due Within One Year

Water and Sewer: Revenue bonds $ 36,780,000 $ 15,555,000 $ 17,990,000 $ 34,345,000 $ 3,715,000 Net premium on bonds 1,148,942 604,857 544,085 Revenue bonds payable, net 37,928,942 15,555,000 18,594,857 34,889,085 3,715,000 Compensated absences 1,246,777 484,899 492,663 1,239,013 123,901 Net OPEB obligation 265,035 23,849 288,884 Net pension liability 1,212,044 1,262,975 1,212,044 1,262,975 Total water and sewer 40,652,798 17,326,723 20,299,564 37,679,957 3,838,901 Other business-type activities: Compensated absences 673,730 147,433 142,754 678,409 67,841 Net OPEB obligation 137,996 9,723 147,719 Net pension liability 2,002,513 271,767 2,002,513 271,767 Total other business-types activities, 2,814,239 428,923 2,145,267 1,097,895 67,841

Total business-type activities, long-term liabilities $ 43,467,037 $ 17,755,646 $ 22,444,831 $ 38,777,852 $ 3,906,742

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Summary of Annual Debt Service Requirements:

Governmental Activities

Year Ended

General Obligation Bonds Special Assessment and

Revenue Bonds

Tax Increment Bonds

September 30, Principal Interest Principal Interest Principal Interest 2016 $ 3,850,000 902,810 $ 1,015,000 $ 391,569 $ 2,815,486 $ 3,804,514 2017 3,945,000 801,980 1,050,000 353,519 2,670,707 3,949,293 2018 4,055,000 697,720 1,095,000 313,269 2,542,014 4,077,986 2019 4,170,000 589,678 1,155,000 271,269 2,449,599 4,170,401 2020 4,260,000 477,704 1,205,000 226,687 2021-2025 6,080,000 1,070,300 3,235,000 507,800 2026-2030 2,985,000 352,125 1,265,000 156,731 Total $ 29,345,000 $ 4,892,317 $ 10,020,000 $ 2,220,844 $ 10,477,806 $ 16,002,194

Business-type Activities

Year Ended September 30, Principal Interest 2016 $ 3,715,000 $ 982,282 2017 4,005,000 909,106 2018 4,185,000 724,074 2019 4,375,000 555,471 2020 3,470,000 424,564 2021-2025 9,665,000 1,032,076 2026-2030 4,930,000 168,709 Total $ 34,345,000 $ 4,796,282

G. Compensated Absences and Other Post Employment Benefit Obligations

Accumulated compensated absences and other post employment benefit obligations are recorded in the government-wide and proprietary financial statements when earned. Expenditures are recorded in the governmental funds when paid. Each fund pays pension costs in proportion to the payroll costs incurred.

H. Water and Sewer System Bond Covenants The Water and Sewer System (the System) bond ordinances provide for two separate

revenue flows to meet the needs of the System operations, reserves and debt service. System Development Charges (impact fees) are deposited into separate accounts. An annual calculation determines the portion of the charge to be transferred to the debt service fund. Impact fees are restricted to payment of debt service related to the construction of new plant capacity. Impact fees may not be used for operations (see Note 8).

First, operating revenue of the System is used to meet the operations and maintenance

requirements. Next, revenue is used to pay any portion of the bond interest, principal and reserve requirements not paid from impact fees. Next, an amount not less than 5% of the prior year's revenue is transferred to the System's renewal and replacement fund until the balance in the fund totals 1% of gross book value of assets of the System. Revenue is then used to fund an operation and maintenance reserve fund, which is maintained at a level equal to 1/8 of the operating budget. Remaining monies can be used for any legal City purpose.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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At September 30, 2015, all reserves including the bond reserve account were fully

funded. The rate structure is calculated annually to assure adequate coverage of all requirements.

I. Tax Increment Revenue Bond Covenants Mizner Park Project: The Community Redevelopment Agency bonds are secured by a pledge of, and a lien

on, the pledged revenues as provided in the resolution and on the deficiency payments received by the Agency pursuant to an interlocal agreement with the City. Pledged revenues consist of tax increment revenues and future land lease revenues of the Agency and the public service taxes of the City. In the event that the tax increment revenues and the future lease revenues are insufficient to pay the required obligations under the Agency bonds, then the City is required to pay the Agency from available public service taxes an amount equal to any deficit in the amounts required to be on deposit in the sinking fund established under the bond resolution.

The Agency has leased the Mizner Park Project to a developer who has constructed a

cultural, commercial and residential facility. The lease is an operating lease with scheduled rent increases over the life of the lease. The lease has a term of 99 years and requires minimum fixed future rentals of $1,180,000 in 2016, 2017, and 2018, increasing to $1,442,500 in 2019 and 2020, and $122,693,364 in total there after, plus contingent rentals. Contingent rentals are the greater of the minimum fixed amount or 15% of the tenant’s net operating income as defined in each lease agreement. In fiscal year 2015, rental income amounted to $1,561,772 including the contingent rental payment of $381,772.

The ability of the tenant to pay the Agency the lease revenues is dependent upon their

ability to sublease the commercial facilities constructed thereon and such other guarantees contracted by the Agency. The Agency has an unsubordinated claim on the buildings constructed under the lease prior to the mortgage holder. All portions of the project have been constructed.

Management monitors the collection of pledged revenues to comply with the bond

resolution. Tax increment and lease revenue payments of contingent rentals from the developer began in 2001 and are available for debt service. Management cannot presently make a reliable estimate of future contingent rentals. If lease rental and tax increment revenues are not sufficient for debt service, the City's pledge of public service tax would be required to be used for the repayment of the debt service.

Based on current information, management believes that there will be no future deficiencies in tax increment and lease revenues that will require the use of the City’s public service tax revenues. The City’s public service (excise) tax was increased from 8.5% to 10% effective January 1, 1997. The tax is levied on electric and water service

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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and on the purchase of natural gas. The increase in revenues through September 30, 2004 was segregated into a special revenue lock box fund to cover future deficiencies in the pledged revenues for the debt service payments for the Mizner Park bonds. The City has restricted $6,233,079 in the special revenue Mizner Park Lock Box Fund and committed $1,633,000 of fund balance in the General Fund at September 30, 2015 to cover future deficiencies in the pledged revenues. The City, in prior fiscal years, had advanced $7,729,500 to the CRA from the Mizner Park Lock Box Fund to cover deficiencies in pledged revenues. During the 2015 fiscal year, the CRA repaid $2 million to the City pursuant to the interlocal agreement between the City and the CRA.

J. Pledged Revenues

The City issues bonds that are served by a pledge of specific revenues. Total pledged revenues to repay the principal and interest of those bonds as of September 30, 2015 are as follows:

Governmental Activities Business-type Activities Source of Revenue

Pledged

Special Assessment Tax Increment Bonds Water & Sewer Revenues Current revenue pledged $ 1,505,634 $ 8,745,041 $ 21,189,185 Current debt service 1,394,994 6,655,000 5,176,925 Total future revenues pledged

12,240,844

26,480,000 39,141,282

Description of debt

Special Assessment Refunding & Improvement Bonds, Series 2009-2010

(Visions 90 Projects)

Tax Increment Bonds, Series 1998 (Mizner

Park Project)

Water and Sewer Utility Revenue Bonds, issued

2008, 2009 & 2015

Purpose of debt

Series 2009, to refund Special Assessment Bonds, Series

2001; Series 2010, to finance certain improvements within

the Downtown District

To refund Tax Increment Bonds,

Series 1992 Construction and Refunding

Term of commitment 2010-2030 1998-2018 2008-2027 Percentage of debt service to pledged revenues (current year)

93% 76% 24%

Additional information related to pledge revenue debt coverage is provided in the Debt Capacity of the Statistical Section. K. Current Year Advance Refunding/Defeasance of Debt

On June 19, 2015, the City issued Water/Sewer Revenue Bonds, Series 2015 in the amount of $15,555,000 to refund a portion of the Water/Sewer Revenue Bonds, Series 2008. The Series 2015 refunded bonds are subject to redemption and are maturing from October 1, 2018 through October 1, 2027. The proceeds of the Series 2015 bonds were deposited with an escrow agent in an irrevocable trust to be used solely for satisfying scheduled payments of the defeased Series 2008 Refunding Bonds. As a

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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result of this refunding, $14,405,000 of the 2008 Refunding Bonds are considered to be defeased in substance for accounting and financial reporting purposes and the liability has been removed from the City's financial statements. This advance refunding reduced total debt service payments by $1,078,490, with a net present value of $946,358. The amount of defeased bonds as of September 30, 2015 was $14,405,000.

10. Employee Retirement Systems

The City of Boca Raton sponsors three defined benefit plans – General Employees’ Pension Plan, Police and Firefighters’ Retirement System and the Executive Employees’ Retirement Plan. The General Employees’ Pension Plan, the Police and Firefighters’ Retirement System and the Executive Employees’ Retirement Plan each issue a publicly available audited GAAP financial report that includes financial statements and required supplementary information. Each of the Plans implemented GASB Statement No. 67 Financial Reporting for Pension Plans - an Amendment of GASB Statement No. 25 effective October 1, 2013. The information reported below is a brief summary of information reported in more detail in the independently published financial statements for each pension plan. Copies of these reports are available at City Hall in the Financial Services Department located at 201 West Palmetto Park Road, Boca Raton, FL 33432. The pension plans’ financial statements are prepared using the accrual basis of accounting. Contributions from members are recognized in the period the City makes payroll deductions from participants. City contributions to each Plan are recognized when due as determined actuarially and are remitted on a monthly basis along with the members’ contributions. The City has made a formal commitment to provide the contributions to the pension plans. Benefit payments and refunds to members are recognized when due and payable in accordance with the terms of each plan. The City implemented GASB Statement No. 68, Accounting and Financial Reporting for Pension Plans - an Amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. The objective of these statements is to enhance the understandability and usefulness of pension information included in the financial statements of state and local governmental employers.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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Current Membership of Pension Plans: Current membership, at September 30, 2015 in the General Employees’ Pension Plan,

Police and Firefighters’ Retirement System and Executive Employees’ Retirement Plan, is comprised of the following:

General

Employees’ Police and

Firefighters’ Executive

Employees’ Pension Plan Retirement

System Retirement Plan

Inactive Plan Members or Beneficiaries Currently Receiving Benefits

507 314 27

Inactive Plan Members Entitled to but Not Yet Receiving Benefits

41 7 9

Active plan members 540 317 43 Total 1,088 638 79

General Employees’ Pension Plan: General Information about the Pension Plan: Plan Description:

The General Employees’ Pension Plan (GE Plan) is a single-employer defined benefit plan administered by an eight-member Board of Trustees (the Board) that covers all regular full-time City employees except police, fire, and executive management employees. The GE Plan was established by Ordinance 1806, adopted April 17, 1973, by City Council. The GE Plan is also governed by Chapter 112, Florida Statutes. The Plan issued a publicly available financial report that includes financial statements and required supplementary information for the retirement system. The report may be obtained online at http://myboca.us/ or by writing to:

General Employees’ Pension Plan 2333 Glades Road Boca Raton, Florida 33431

The GE Plan is divided into three levels of benefit- Plan A, Plan B and Plan C. Employees hired prior to October 1, 1987 are enrolled in GE Plan A. Employees hired from October 1, 1987 to October 31, 2007 or transferred from GE Plan A are enrolled in GE Plan B. Employees hired on or after November 1, 2007, or who elect to transfer from GE Plan A or B, may enroll in GE Plan C or the City’s defined contribution plan. On an ongoing basis, all assets accumulated for the payment of benefits may legally be used to pay benefits to members or beneficiaries of GE Plan A, B and C.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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Benefits Provided: Retirement benefits are calculated by multiplying the member’s earnings averaged over five years times the member’s years of continuous service times a multiplier determined by their plan level. Members become eligible for unreduced benefits upon the attainment of age 65, without regard to service, age 55 with the completion of 20 years of continuous service, or age 53 with the completion of 30 years of continuous service. GE Plan A and B participants utilize a 3.00% multiplier and GE Plan C participants utilize a 1.75% multiplier. Members become eligible for a Rule 68 retirement benefit when age plus service equals 68 and requires a minimum age of 50 and minimum continuous service of 15 years. For the Rule of 68 retirement option, GE Plan A participants utilize a 2.5% multiplier. GE Plan B and C participants utilize a 1.50% multiplier. Members qualify for alternate unreduced early retirement upon the attainment of age 55 and minimum continuous service of 15 years. GE Plan A and B participants utilize a 2% multiplier. GE Plan C participants utilize a 1.75% multiplier. Members qualify for early retirement benefits upon attaining age 50 with 20 years of continuous service. If a participant terminates employment after having attained the early retirement date, they have the following two available options: 1) The benefits can be deferred until the member’s normal retirement date, in which case the benefit will be calculated the same as normal retirement, or 2) The member may take a reduced benefit, which may start any time prior to the normal retirement date. The reduction factor is 5% for each year early retirement precedes the normal retirement age 55.

Active employees who become disabled receive 60% (50% of earnings for disabilities

incurred away from work) of the monthly earnings in effect at the time of disability, reduced by workers’ compensation or any public disability benefits to which the member is entitled. Disability benefits are paid until the earlier of death, recovery, or the end of the maximum benefit period. The maximum benefit period is until age 65 if the member became disabled prior to attainment of age 60 or for 60 months if the member became disabled after the attainment of age 60.

If an employee dies while an active member or on disability, the benefit is equal to 3.5

times the member’s annual earnings as of the date of death or the date the member became disabled. The beneficiary receives an initial lump sum followed by monthly payments until the designated amount is paid in full. Interest, at a rate equal to the yield of the five-year U.S. Treasury Note on the first day of the fiscal year, is approved annually by the Board of Trustees and is credited on the unpaid balance.

If a member meets the minimum service requirement of 10 years of continuous service

at the time employment terminates, the benefit will be paid when the member turns 65 or later attains the age requirement for unreduced benefits provided the service

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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requirement for unreduced benefits was met prior to termination. A member may elect to take an immediate reduced benefit, when eligible, calculated in the same manner as for early retirement.

If termination occurs after the completion of 10 years of continuous service, the full

accrued retirement benefit is payable at the normal retirement date. If termination occurs prior to the completion of 10 years of continuous service, the member’s contributions will be refunded with interest credited at 3% per year, compounded annually.

The Deferred Retirement Option Plan (DROP) is available to all GE Plan members who

are still actively employed and have attained the age of 55 with at least 20 years of continuous service, age 53 with at least 30 years of continuous service, or a reduced benefit at age 50 with 20 years of continuous service. Upon electing to participate in the DROP, members are considered to have retired for pension purposes of the GE Plan but continue to remain in active employment with the City. The member’s pension benefit is calculated as if they actually retired on the date of DROP participation, using continuous service, average monthly earnings, and the current multiplier as of that date. Instead of paying the benefit to the member, a DROP account is established and the benefit is deposited in the account each month; these deposits continue to accumulate interest during the remainder of the member’s employment with the City. City and employee contributions cease when a member elects to participate in the DROP. Maximum duration of participation is five years. If a member continues to remain in employment more than the maximum period, no further deposits will be made to the member’s account and investment earnings will cease to be posted. Upon termination of employment, members shall receive their normal retirement benefits and may elect to receive their funds from the DROP account in a lump sum distribution or roll their account balance into a qualified instrument. When participating in the DROP, participants are no longer eligible for disability or preretirement death benefits from the GE Plan. If a participant dies prior to the DROP balance being paid in full, the beneficiary shall have the same rights to which the participant was entitled. At September 30, 2015, there were 49 DROP participants with a total balance of $4,411,443.

GE Plan Contributions:

GE Plan A and B members are required to contribute 9.65% of their annual earnings while GE Plan C members are required to contribute 6% of their annual earnings. Member contributions are established in accordance with the applicable collective bargaining agreement. Annual earnings include basic wages and longevity pay but exclude overtime, bonuses and any other extra compensation. Annual earnings does not include payments made to a member for any portion of a cost of living adjustment and/or merit increase, which exceeds the maximum of the employee’s respective salary range. Employer contributions for the fiscal year ended September 30, 2015 determined using the actuarial valuation dated October 1, 2013 were 13.81% of covered payroll for both GE Plan A and B members. The City is required to contribute the remaining amounts necessary to finance the benefits through periodic contributions of actuarially determined amounts.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

City's Net Pension Liability Regarding the GE Plan The City's liability for the net pension liability (asset) was measured as of September 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2013, rolled forward to September 30, 2014 using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation 3.0 percent Salary increases Varies Investment rate of return 8.0 percent Cost of living adjustment none Mortality rates were based on the RP-2000 Generational Mortality Table for healthy Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. The long-term expected rate of return on the GE plan investments is 8.0%. The GE plan's policy in regard to the allocation of investments is established by the GE Plan Board of Trustees. The long-term expected rate of return of each pension plan asset class is based upon the historical average or mean returns. This historical data reveals a tendency for the returns of various asset classes to fall within a range, but the expected returns are based upon the average returns during these past periods. In order to determine the real rates of return, it is necessary to subtract the expected inflation rate from the nominal investment return. The long-term expected rate of return for the GE plan was calculated by weighing the expected future rates of return of each asset class by the corresponding target allocation percentages. Best estimates of real rates of return for each major asset class included in the GE plan's target asset allocation as of September 30, 2014 are summarized as follows: Asset Class Long-Term Expected Real Rate of Return Domestic equity 8.3% International equity 3.6 Fixed income 4.8 Real estate 4.3 Cash 1.3 The discount rate used to measure the total pension liability was 8.0 percent. The projection of cash flows was used to determine the discount rate assumed the GE Plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the difference between actuarially determined contribution

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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rates and the member rate. Based on those assumptions, the GE Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current GE Plan members. Therefore, the long-term expected rate of return on GE Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in Net Pension Liability (Asset):

General Employees' Pension Plan

Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a) (b) (a) - (b) Balance at September 30, 2013 $ 195,694,689 $ 189,010,635 $ 6,684,054 Changes for the year:

Service cost 4,070,341 - 4,070,341 Interest 15,543,810 - 15,543,810 Differences between expected

and actual experience (3,613,328) - (3,613,328)Contributions - employer 3,744,111 (3,744,111)Contributions - employee 2,360,378 (2,360,378)Net investment income 19,283,849 (19,283,849)Benefit payments, including re-

funds of employee contributions (10,934,813) (10,934,813) -Administrative expense - (243,981) 243,981

Net changes 5,066,010 14,209,544 (9,143,534)Balance at September 30, 2014 $ 200,760,699 $ 203,220,179 $ (2,459,480)       

The following presents the net pension liability of the City, calculated using the discount rate of 8.0 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (7.0%) or 1-percentage-point higher (9.0%) than the current rate: 1% Decrease Current Rate 1% Increase 7.00% 8.00% 9.00% Net pension liability (asset) $ 17,866,746 $ (2,459,480) $ (19,805,197) GE Plan Fiduciary Net Position. Detailed information about the GE Plan's Fiduciary Net Position is available in a separately issued financial report. The report may be obtained on the internet at the City's website (http://myboca.us/). Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to GE Plan:

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

For the fiscal year ended September 30, 2015 the City recognized a GE pension expense of $716,728. This amount is included as part of personal services expenses within the functional program activities. At September 30, 2015, the City reports deferred outflows and inflows of resources related to the GE Plan from the following sources:

Deferred Deferred Outflow of Inflow of Resources Resources Difference between expected and actual experience $ 2,623,375 Liability (gain) loss 3,492,776 Contributions $ 3,925,569

Total $ 3,925,569 $ 6,116,151        

Deferred outflows of resources related to the GE Plan, totaling $3,925,569, resulting from City contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability for the fiscal year ended September 30, 2016. Other amounts reported as deferred outflows of resources and as deferred inflows of resources related to the GE Plan will be recognized in pension expense as follows: Year ended September 30: 2016 $ (3,925,569) $ (1,863,147)2017 (1,863,147)2018 (1,516,663)2019 (873,194) The schedule of changes in the City's net pension liability and related ratios and the schedule of contributions, presented as Required Supplementary Information (RSI) following the notes to the financial statements, provide additional information about the net pension liability, plan assets and contributions. Police and Firefighters’ Retirement System:

General Information about the Pension Plan: Plan Description:

The Police and Firefighters’ Retirement System (PF Plan) is a single-employer defined benefit plan administered by an eight-member Board of Trustees which covers all City of Boca Raton (the City) police officers and firefighters. The PF Plan issued a publicly available financial report that includes financial statements and required supplementary information for the retirement system. The report may be obtained online at http://myboca.us/ or by writing to:

Police and Firefighters' Retirement System 2333 Glades Road Boca Raton, Florida 33431

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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The PF Plan was established by Ordinance 1806, adopted April 17, 1973, by City Council. The PF Plan is also governed by Chapters 112, 175, and 185, Florida Statutes. Pursuant to Chapters 175 and 185 of the Florida Statutes, premium taxes on certain property and casualty insurance contracts written on City properties is collected by the State and is remitted to the PF Plan. This amount totaled $3,198,125 for the fiscal year ended September 30, 2015: $1,972,805 for property insurance contracts for firefighters under Chapter 175 and $1,225,320 for casualty insurance contracts for police officers under Chapter 185. This amount was recognized as an expenditure and revenue in the Retirement Sustainability Internal Service Fund. Benefits Provided: Police officers completing 20 or more continuous years of service, or age 55 with 10 years of continuous service, are eligible for normal retirement benefits. For those police officers retiring prior to April 14, 2015 normal retirement participants are entitled to receive monthly benefits payable at 3.5% of their average monthly earnings (AME) for the highest two consecutive years of compensation multiplied by the member’s years of continuous service subject to a maximum of 87.5%. For those police officers retiring on or after April 14, 2015 normal retirement participants are entitled to receive monthly benefits payable at 3.5% of their AME for the three consecutive years immediately preceding retirement multiplied by the member's years of continuous service subject to a maximum of 77%. For those police officer members who purchased past service prior to April 14, 2015, the maximum benefit shall be increased to include the percentage attributable to the past service purchase but shall not exceed 87.5% of AME. Police officers who become members of the plan on or after April 14, 2105 shall not have overtime included in the calculation of AME. Normal retirement participants upon attainment of their normal retirement date are eligible to receive a 2% annual (cost of living) increase after one year of retirement. Retirements before October 1, 2001 receive a 3% increase (cost of living adjustment) every two years. Firefighters completing 20 or more continuous years of service, or age 55 with 10 years of service, are entitled to monthly benefits of 3.4% of their average monthly earnings (AME) for the highest two consecutive years of compensation multiplied by the member’s years of continuous service subject to a maximum of 90% of AME or $100,000, whichever is less. Firefighter participants eligible to receive normal retirement benefits and have 22 or more years of continuous service (or 20 years if retired prior to December 9, 2008), are eligible for a cost of living adjustment of 3% once they have attained the age of 52 or have been retired one year, whichever comes later, for continuous service accrued prior to April 14, 2015; continuous service accrued after April 14, 2015 the cost of living adjustment is 2.5%. Participants with 21 years of continuous service are eligible for the cost-of-living adjustment after two years and with 20 years of continuous service are eligible after three years. Benefits payable for service-related death and disability benefits are increased by 3% each year starting with the date they would have attained age 52. No increases apply to non-service related death or disability benefits unless they complete 20 years of continuous service prior to their death or disability.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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Members separating from service receive a $10.50 monthly supplement per year of service. Members retiring on or before October 26, 2010 received a $10 monthly supplement per year of service. A member of the PF Plan may be eligible for early retirement after attainment of age 50 with 10 years of continuous service. Members so qualifying may receive benefits under one of the following two options: The benefits can be deferred until the member's normal retirement date, in which

case the benefit will be calculated the same as discussed above under normal retirement, or

The member may take a reduced benefit, which may start any time prior to the normal retirement date. The reduction factor is 3% for each year prior to the normal retirement date.

Active members who become disabled while in service receive 75% of the average

monthly earnings. Disability benefits are paid until the earlier of death or recovery from disability. The maximum pension including social security and workers compensation is 100% of salary at disability. If an active member dies from in-service death, the beneficiary receives a $5,000 lump sum benefit payment plus a maximum monthly benefit equal to 75% of the member's average monthly earnings until the beneficiary's death. If an active member dies from non-service incurred cause and has less than one year of service, the beneficiary receives a $2,500 lump sum benefit. If an active member dies from non-service incurred cause and has more than one year of continuous service, the beneficiary receives a $5,000 lump sum benefit payment. If the member has five or more years of service, the surviving spouse will receive a monthly pension equal to 65% of the employee’s accrued pension.

If an employee terminates his employment and is not eligible for any other benefits

under the system, the member is entitled to the following:

With less than ten years of continuous service, a refund of the member contribution is made plus 3% interest, or

With ten or more years of continuous service, the pension accrued to the date of termination, payable commencing at his or her normal retirement date, or at the member’s option, a lump sum refund of the member contribution plus 3% interest.

Police officers and firefighters who have reached normal retirement age may elect to

participate in the Deferred Retirement Option Plan (DROP). Upon electing to participate in the DROP, members are considered to have retired for purposes of the PF Plan, but continue to remain active employees of the City. The member’s normal retirement benefit is calculated as if the member had actually retired on the date of DROP participation, using continuous service and average monthly earnings as of that date. Instead of paying the benefit to the member, a DROP account is established and the benefit is deposited in the account each month; these deposits continue to accumulate

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

interest during the remainder of the member’s employment with the City. Maximum duration of DROP participation is five years. If a member continues to remain in employment more than the maximum period, no further deposits will be made to the member’s account and investment earnings will cease to be posted. Upon termination of employment, members shall receive their normal retirement benefits and may elect to receive their funds from the DROP account in a lump sum, annual installments or monthly annuity distributions. Benefit distributions must commence by age 70 ½. When participating in the DROP, participants are no longer eligible for disability or preretirement death benefits from the PF Plan. If a participant dies prior to the DROP balance being paid in full, the beneficiary shall have the same rights to which the participant was entitled. At September 30, 2015, there were 102 DROP participants with a total balance of $24,324,588.

PF Plan Contributions: Police officer members are required to contribute 11.5% of their annual earnings. Member contributions are established in accordance with the applicable collective bargaining agreement. For those police officers who became members of the Plan prior to April 14, 2015 annual earnings include basic wages, longevity pay and the first 300 hours of overtime but exclude any overtime earnings in excess of 300 hours, bonuses and any other extra compensation. For those police officers who became members of the Plan on or after April 14, 2015 annual earnings include basic wages only. The PF Plan receives funding from premium taxes on certain property and casualty insurance contracts written on City properties which is collected by the State and remitted directly to the PF Plan as a contribution, which was 8.44% of covered payroll for police officers. Employer contributions for the fiscal year ended September 30, 2015 determined using the actuarial valuation dated October 1, 2013 were 36.98% of covered payroll. The City is required to contribute the remaining amounts necessary to finance the benefits through periodic contributions of actuarially determined amounts. Firefighter members are required to contribute 10.2% of their annual earnings. Member contributions are established in accordance with the applicable collective bargaining agreement. Annual earnings include basic wages, certification pay and longevity pay but exclude overtime, bonuses and any other extra compensation. The PF Plan receives funding from premium taxes on certain property and casualty insurance contracts written on City properties which is collected by the State and remitted directly to the PF Plan as a contribution, which was 11.76% of covered payroll for firefighters. Employer contributions for the fiscal year ended September 30, 2015 determined using the actuarial valuation dated October 1, 2013 were 36.98% of covered payroll. The City is required to contribute the remaining amounts necessary to finance the benefits through periodic contributions of actuarially determined amounts.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

City's Net Pension Liability Regarding the PF Plan The City's liability for the net pension liability (asset) was measured as of September 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2013, rolled forward to September 30, 2014 using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation 3.0 percent Salary increases 4.60 percent to 4.70 percent Investment rate of return 8.0 percent Cost of living adjustment varies Mortality rates for non-disabled members is assumed to follow the fully generational RP-2000 Generational Mortality Tables for healthy Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. Mortality rates for disabled members is based on the 1994 Group Annuity Mortality table with no projected mortality improvements set forward 5 years. The long-term expected rate of return on the PF plan investments is 8.0%. The PF plan's policy in regard to the allocation of investments is established by the PF Plan Board of Trustees. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return for the PF plan by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimate of arithmetic real rates of return for each major asset class included in the PF Plan's target asset allocation as of September 30, 2014 are summarized in the following table: Asset Class Long-Term Expected Real Rate of Return Core bonds 2.84% U.S. Large cap equity 7.77 U.S. Small cap equity 9.03 International developed equity 8.76 Emerging markets equity 10.09 Long/short equity 7.64 Opportunistic real estate - Core real estate 5.53

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

The discount rate used to measure the total pension liability was 8.0 percent. The projection of cash flows was used to determine the discount rate assumed the PF Plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the PF Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current PF Plan members. Therefore, the long-term expected rate of return on PF Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in Net Pension Liability (Asset):

Police & Firefighters Plan

Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a) (b) (a) - (b) Balance at September 30, 2013 $ 377,532,086 $ 283,305,375 $ 94,226,711 Changes for the year:

Service cost 8,842,600 8,842,600 Interest 30,257,546 30,257,546 Contributions - employer 13,182,553 (13,182,553)Contributions - State 2,868,153 (2,868,153)Contributions - employee 2,985,855 (2,985,855)Contributions - buy back 28,668 28,668 -Transfer fr Gen'l Employees' Plan 132,304 132,304 -Net investment income 26,241,511 (26,241,511)Benefit payments, including re-

funds of employee contributions (16,310,699) (16,310,699) -Administrative expense (362,469) 362,469

Net changes 22,950,419 28,765,876 (5,815,457)Balance at September 30, 2014 $ 400,482,505 $ 312,071,251 $ 88,411,254        

Florida State Statutes Chapters 175 and 185 establish minimum benefits and standards for all municipal Police Officer and Firefighter pension plans. The statutes govern the allocation of insurance premium excise taxes that are levied to provide a partial funding source for these plans. In 2015, the statutes were amended to allow the City and the Unions to mutually agree on the use of these funds. Both the Police and Fire Union contracts expire September 30, 2017 at which time the City and Unions are expected to commence negotiating terms governing the use of the insurance premium excise taxes. The balance of the insurance premium excise taxes to be used for future benefits at September 30, 2015 totals $12,788,080. The following presents the net pension liability of the City, calculated using the discount rate of 8.0 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (7.0%) or 1-percentage-point higher (9.0%) than the current rate:

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

1% Decrease Current Rate 1% Increase 7.00% 8.00% 9.00% Net pension liability $ 140,325,945 $ 88,411,254 $ 45,729,102 PF Plan Fiduciary Net Position. Detailed information about the PF Plan's Fiduciary Net Position is available in a separately issued financial report. The report may be obtained on the internet at the City's website (http://myboca.us/). Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to PF Plan: For the fiscal year ended September 30, 2015 the City recognized a PF pension expense of $10,147,981. This amount is included as part of personal services expenses within the functional program activities. At September 30, 2015, the City report deferred outflows and inflows of resources related to the PF Plan from the following sources:

Deferred Deferred Outflow of Inflow of Resources Resources Asset (gain) loss $ 9,444,487 Advance contributions 1,908,242 Actual earnings on Pension Plan Investments - $ 2,780,885

Total $ 11,352,729 $ 2,780,885        

Deferred outflows of resources related to the PF Plan, totaling $9,444,487, resulting from City contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability for the fiscal year ended September 30, 2016. Other amounts reported as deferred outflows of resources and as deferred inflows of resources related to the PF Plan will be recognized in pension expense as follows: Year ended September 30: 2016 $ (9,444,487) $ (695,221)2017 (1,908,242) (695,221)2018 (695,221)2019 (695,222) The schedule of changes in the City's net pension liability and related ratios and the schedule of contributions, presented as Required Supplementary Information (RSI) following the notes to the financial statements, provide additional information about the net pension liability, plan assets and contributions.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Executive Employees’ Retirement Plan Plan Description: The Executive Employees’ Retirement Plan (EE Plan) is a single-employer defined benefit plan administered by a five-member Board of Trustees that covers the executive employees of the City of Boca Raton. The EE Plan was established by Ordinance 4745, adopted November 12, 2003, by City Council. The EE Plan is also governed by Chapter 112, Florida Statutes. The Plan issued a publicly available financial report that includes financial statements and required supplementary information for the retirement system. The report may be obtained online at http://myboca.us/ or by writing to:

Florida Municipal Pension Trust Fund Florida League of Cities, Inc. Post Office Box 1757 Tallahassee, FL 32302-1757

EE Plan members are assigned to one of four divisions, each providing different levels of benefits depending on their division and entry into the plan. Division 1 includes D1, D2 and D3 pay classifications; Division 2 includes D4 and higher D pay classifications; Division 3 includes DD pay classifications and Division 4 includes the City Manager and City Attorney, if they elect to participate in the EE Plan. Retirement benefits are calculated by multiplying the member’s earnings averaged over five years (for Division 1 through Division 3) or two years (for Division 4) times the member’s years of continuous service times a multiplier determined by their plan level subject to a maximum of 90%. For members on or before September 30, 2010 Division 1, Division 2, and Division 3 utilize multipliers of 3.05, 3.15 and 3.25 respectively. Division 4 utilizes a multiplier of 4.45 for the first 10 years and 3.35 thereafter. After September 30, 2010 new members assigned to Division 1, Division 2, Division 3 and Division 4 utilize multipliers of 2.35, 2.45, 2.55 and 2.65 respectively.

Members are eligible to retire the earlier of reaching age 65 with at least 6 years of vesting service or reaching age 55 with at least 10 years of vesting service or for new members after September 30, 2010 age 58 with at least 10 years of vesting service. Monthly benefits are calculated as a percentage of average final compensation. A cost of living increase of 2% per year for Divisions 1, 2 and 3 and 3% per year for Division 4 in current monthly benefits commence on October 1st following 5 years after retirement. Members who terminate with 10 years or more of benefit service and are eligible for immediate early or normal retirement receive a $10 monthly supplement per year of service. The EE Plan also permits early retirement for all participants at the age of 50 and the completion of 10 years of vesting service or for new members after September 30, 2010 age 53 and the completion of 10 years of vesting service. Members qualify for early retirement benefits upon attaining age 50 with 10 years of continuous service or for new members after September 30, 2010 age 53 with 10 years

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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of continuous service. If a participant terminates employment after having attained the early retirement date, they have the following two available options: 1) The benefits can be deferred until the member’s normal retirement date, in which case the benefit will be calculated the same as normal retirement, or 2) The member may take a reduced benefit, which may start any time prior to the normal retirement date. The reduction factor is 5% for each year the early retirement precedes the normal retirement age 55 or 58 for new members who join the plan after September 30, 2010.

Members who have reached normal retirement age may elect to participate in the Deferred Retirement Option Plan (DROP). They will remain active employees of the City, but will no longer contribute to the EE Plan. Their benefits will remain frozen and continue to accrue interest until they retire from the City, at which time DROP benefits will be paid. Maximum duration of participation is sixty months. At September 30, 2015, there were 8 DROP participants with a total balance of $1,608,206.

Active employees who become disabled receive 60% of the average final compensation

as of the date of disability payable starting at age 65. Disability benefits are paid until the earlier of death or recovery from disability. If an active employee dies, a member’s beneficiary is entitled to an accrued benefit that varies with age, length of service and employee division. If an employee terminates his employment with the City and is not eligible for any other benefits under the EE Plan, the member is entitled to the following:

with less than six years of continuous service, a refund of member contribution plus

5% interest. with six or more years of continuous service, the pension accrued to the date of

termination, payable commencing at the member’s normal retirement date.

The City by Ordinance No. 4749 established a Preservation of Benefits Plan to pay benefit obligations. In the event that the accrued benefit for a member under the EE Plan is reduced pursuant to Section 401(a)(17) or Section 415(b) of the Internal Revenue Code, the City will pay a supplemental benefit amount equal to the amount reduced under the Internal Revenue Code limits.

EE Plan Contributions:

Members are required to contribute 11% of their annual earnings. Annual earnings include basic wages and longevity pay but exclude overtime, bonuses and any other extra compensation. Annual earnings do not include payments made to a member for any portion of a cost of living adjustment and/or merit increase, which exceeds the maximum of the employee’s respective salary range. Employer contributions for the fiscal year ended September 30, 2015 determined using the actuarial valuation dated October 1, 2013 were 32.84% of covered payroll. The City is required to contribute the remaining amounts necessary to finance the benefits through periodic contributions of actuarially determined amounts.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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City's Net Pension Liability Regarding the EE Plan The City's liability for the net pension liability (asset) was measured as of September 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial Assumptions: The total pension liability was determined by an actuarial valuation as of October 1, 2013, rolled forward to September 30, 2014 using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation 3.0 percent Salary increases Varies Investment rate of return 7.5 percent Cost of living adjustment Varies Mortality rates for non-disabled members is assumed to follow the fully generational RP-2000 Generational Mortality Tables for healthy Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. Mortality rates for disabled members are based on the 1994 Group Annuity Mortality table with no projected mortality improvements set forward 5 years. The long-term expected rate of return on the EE plan investments is 7.5%. The EE plan's policy in regard to the allocation of investments is established by the EE Plan Board of Trustees. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return for the EE plan by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimate of arithmetic real rates of return for each major asset class included in the EE Plan's target asset allocation as of September 30, 2014 are summarized in the following table: Asset Class Long-Term Expected Real Rate of Return Core Bonds 2.3% Multi-Sector 2.8 U.S. Large Cap Equity 5.7 U.S. Small Cap Equity 6.2 Non-U.S. Equity 5.4 The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows was used to determine the discount rate assumed the EE Plan member contributions will be made at the current contribution rate and that contributions

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the EE Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current EE Plan members. Therefore, the long-term expected rate of return on EE Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in Net Pension Liability (Asset):

Executive Employees Plan

Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a) (b) (a) - (b) Balance at September 30, 2013 $ 37,521,477 $ 27,876,795 $ 9,644,682 Changes for the year:

Service cost 807,122 807,122 Interest 2,970,466 2,970,466 Differences between expected

and actual experience 327,026 327,026 Changes to assumptions 1,055,238 Contributions - employer 1,458,974 (1,458,974)Contributions - employee 717,085 (717,085)Net investment income 2,784,340 (2,784,340)Benefit payments, including re-

funds of employee contributions (1,088,490) (1,088,490) -Administrative expense (38,294) 38,294

Net changes 4,071,362 3,833,615 237,747 Balance at September 30, 2014 $ 41,592,839 $ 31,710,410 $ 9,882,429        

The following presents the net pension liability of the City, calculated using the discount rate of 7.5 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5%) or 1-percentage-point higher (8.5%) than the current rate: 1% Decrease Current Rate 1% Increase 6.50% 7.50% 8.50% Net pension liability (asset) $ 14,945,530 $ 9,882,429 $ 5,648,211 EE Plan Fiduciary Net Position. Detailed information about the EE Plan's Fiduciary Net Position is available in a separately issued financial report. The report may be obtained on the internet at the City's website (http://myboca.us/).

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

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Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to EE Plan: For the fiscal year ended September 30, 2015 the City recognized an EE pension expense of $1,944,969. This amount is included as part of personal services expenses within the functional program activities. At September 30, 2015, the City reports deferred outflows and inflows of resources related to the EE Plan from the following sources:

Deferred Deferred Outflow of Inflow of Resources Resources Liability (gain) loss $ 116,113 Asset (gain)/loss $ 1,457,248

Total $ 1,457,248 $ 116,113        

Deferred outflows of resources related to the EE Plan, totaling $1,457,248, resulting from City contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability for the fiscal year ended September 30, 2016. Other amounts reported as deferred outflows of resources and as deferred inflows of resources related to the EE Plan will be recognized in pension expense as follows: Year ended September 30: 2016 $ (1,457,248) $ (29,028)2017 (29,028)2018 (29,028)2019 (29,029) The schedule of changes in the City's net pension liability and related ratios and the schedule of contributions, presented as Required Supplementary Information (RSI) following the notes to the financial statements, provide additional information about the net pension liability, plan assets and contributions.

11. Other Post Employment Benefits (OPEB)

Plan Description The City provides a single employer defined benefit health care plan to all of its employees except for the firefighter members covered by the collective bargaining agreement between the City and the International Association of Firefighters. The Plan allows its employees and their beneficiaries, at their own cost and until the attainment of age 65, to continue to obtain health, dental and other insurance benefits upon retirement. The benefits of the Plan conform to the Florida Statutes, which are the legal authority for the Plan. The Plan has no assets and does not issue a separate financial report.

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CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Funding Policy and Annual OPEB Cost The City does not directly make a contribution to the Plan on behalf of retirees. Retirees and their beneficiaries pay the same group rates as are charged to the City for active employees by its healthcare provider. However, the City’s actuaries, in their actuarial valuation, calculate an offset to the cost of these benefits as an Employer Contribution, based upon an implicit rate subsidy. This offset equals the total age-adjusted costs paid by the City or its active employees for coverage of the retirees and their dependents for the year net of the retiree’s own payments for the year. The annual other post employment benefit (OPEB) cost is calculated based on the annual required contribution of the employer, an amount actuarially determined in accordance with GASB Statement No. 45. The annual required contribution represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The annual OPEB cost for the City for the current year and the related information is as follows: Required contribution rates: Employer Pay-as-you-go Plan members N/A FY 2015 Annual Required Contribution (ARC) $ 514,000 Interest on Net OPEB Obligation 94,000 Adjustment to ARC (79,000)Annual OPEB cost 529,000 Employer Contributions (310,000)Increase in net OPEB obligation 219,000 Net OPEB obligation – October 1, 2014 2,080,000 Net OPEB obligation – September 30, 2015 $ 2,299,000

The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2015 and the two preceding years were as follows:

Fiscal year ended

Annual OPEB costPercentage of OPEB

cost contributed Net OPEB obligation

9/30/2013 $ 588,000 58.33% $ 1,816,000 9/30/2014 $ 504,000 47.62% $ 2,080,000 9/30/2015 $ 529,000 58.60% $ 2,299,000

86

CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Funded Status and Funding Progress

The funded status of the plan as the most recent valuation date, October 1, 2014, is as follows: Actuarial accrued liability $ 6,005,000 Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) $ 6,005,000 Funded Ratio Covered payroll $ 46,323,552 UAAL as a percentage of covered payroll 12.37%

The actuarial valuation for the calculation of OPEB involves estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress presented as required supplementary information is designed to provide multi-year trend information to show whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. However, the City has not contributed assets to the plan at this time.

Actuarial Methods and Assumptions

Projections of benefits are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the City and the plan members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as follows:

Actuarial valuation date 10/1/2014 Actuarial cost method Projected Unit Credit Amortization method Level percent, closed Remaining amortization period 30 years Asset valuation method Unfunded Actuarial assumptions: Investment rate of return 4.50% Projected salary increases 3.50% Post-retirement benefit increases 0% Inflation rate 3.50% Healthcare inflation rate, ultimate 3.00%

87

CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

12. Interfund Receivables, Payables and Transfers A. Due To/From Other Funds (Balances Expected To Be Repaid Within One Year) During the course of operations, numerous transactions occur between individual funds

for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet.

The following is a summary of interfund receivable and payable balances at September 30, 2015:

Interfund Receivables (Due From)

Interfund Payables (Due To)

Major funds: General Fund $ 2,641,749 Beach and Park Operations Fund $ 2,498,912 Non-Major Governmental Funds 142,837 Total interfund receivables/payables $ 2,641,749 $ 2,641,749

The inter-fund balances above represent short-term loans to cover temporary negative balances in each fund’s equity in pooled cash at year end.

B. Interfund Transfer Reconciliation

Transfers to:

Transfers from: General CRA Mizner

Park Non-major

GovernmentalInternal Service

Non-Major Enterprise

Total

General $ 1,500,000 $ 1,586,300 $ 3,086,300 CRA Mizner Park Revenue 6,601,100 6,601,100 5 Year Capital Improvements 1,948,200 1,948,200 Beach and Park Operations 58,600 58,600 Water and Sewer 158,500 158,500 Non-major governmental $ 21,000 $ 100,000 1,395,500 11,500 $ 521,500 2,049,500 Non-major enterprise 25,000 25,000 Internal Service 2,500 2,500 Total $ 21,000 $ 100,000 $ 9,496,600 $ 3,790,600 $ 521,500 $ 13,929,700

The transfer to the General Fund is transfer from the Downtown Infrastructure Fund for the reimbursement of administrative costs relating to the downtown special assessment program. Non-major governmental fund transfers in are for payment of debt service, beautification projects, and CRA operations. The transfers into the internal service funds are for the purchase of capital assets, which are not recovered through normal user fees and to partially offset operating costs in Information Technology Fund. The transfer into the non-major Enterprise funds is for maintenance of the Cemetery Fund.

88

CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

13. Self-Insurance Programs The City is exposed to various risks of loss related to torts; theft of, damage to, and

destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City has established a Self-Insurance Fund (an Internal Service Fund) to account for and finance its uninsured risks of loss. Under this program the City has established three programs, Workers Compensation, Employees’ Health and General and Automobile Liability.

The City is fully self-insured for workers’ compensation, general liability, automobile

liability, employment liability, police professional liability and errors and omissions. In addition, the City purchases an excess policy at a self-insured retention of $500,000 for workers’ compensation each accident, except $875,000 for police, fire, and presumption claims and $200,000 per occurrence for general liability, auto liability, law enforcement liability, and public official’s liability losses. On October 1, 2014, the City changed its excess policy insurance provider to Lloyd’s of London BRITT for general liability coverage and New York Marine for excess workers’ compensation coverage. The City purchases commercial insurance for property damage up to $150,000,000 after deductibles ranging from $5,000 to $1,000,000. There were no significant changes in insurance coverage from the prior year and the amount of settlements did not exceed the insurance coverage for each of the past three years. The City has entered into a contract with Florida Blue to provide for employee health insurance through a self-insurance program with Florida Blue as a third party payer. The City has also purchased Stop-Loss coverage for the group medical and pharmacy plan with a specific deductible of $250,000 and with Aggregate contract attachment point of $8,952,632 with 125% aggregate corridor. The City is ultimately responsible for and establishment of reserve amounts on claims.

All funds of the City participate in the program and make payments to the Self-Insurance Fund, based on actuarial estimates of amounts needed to pay prior and current year claims. The claims liability of $9,096,000 reported in the Fund at September 30, 2015 is based on the requirements of GASB No. 10, “Accounting and Financial Reporting for Risk Financing and Related Insurance Issues,” which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. A discount rate of 4.50% is assumed for group medical claims.

The City’s estimated liability for self-insured losses for general liability and workers’

compensation was determined by an independent actuarial valuation performed as of September 30, 2015. Liabilities include an amount for claims incurred but not reported (IBNR). Claims liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts and other economic and social factors. The liability for self-insured losses are based on estimates and the ultimate settlement of the claims may differ from the amounts recorded. The estimated liability at September 30, 2014 and 2015 is as follows:

89

CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

Liability as of:

Type 9/30/14 9/30/15

Due Within One Year

Workers Compensation $ 4,428,000 $ 4,807,000 $ 1,383,000 General and Automobile Liability 3,683,000 3,977,000 880,000 Health Insurance 377,000 312,000 312,000 Total $ 8,488,000 $ 9,096,000 $ 2,575,000

Changes in the estimated liability for the fiscal years ended September 30, 2014 and

2015 are as follows:

Claims and Fiscal Liability Changes in Claim Liability Year October 1 Estimates Payments September 302014 $ 9,486,801 $ 7,006,800 $ 8,005,601 $ 8,488,000

2015 $ 8,488,000 $ 9,746,271 $ 9,138,271 $ 9,096,000

14. Prior Period Adjustment

The City implemented GASB Statement Nos. 68, Accounting and Financial Reporting for Pension - an Amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an Amendment of GASB Statement No. 68, effective October 1, 2014. Implementation of GASB No. 68 and 71 recognized the City's net pension liabilities, assets, and obligations for contributions made after the pension plan's actuarial measurement dates; therefore, the implementation of these statements resulted in the restatement of prior period net position for the fiscal year ended September 30, 2015 by $110,555,448.

Governmental

Activities

Business-type

Activities Total Net position, prev reported, 9/30/2014 $ 518,946,444 $ 345,133,740 $ 864,080,184 Adjustment for GASB No. 68 and 71

Reduction of net pension asset (8,394,018) (8,394,018)Increase deferred outflows of resources

17,215,916 1,169,723 18,385,639

Increase net pension liability (107,340,891) (3,214,557) (110,555,448)Net position, as restated, 9/30/2014 $ 420,427,451 $ 343,088,906 $ 763,516,357    

15. Contingent Liabilities Amounts received or receivable from grantor agencies are subject to audit and

adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, might constitute a liability of the applicable funds. It is management's opinion that there are not any significant contingent liabilities relating to these grants.

90

CITY OF BOCA RATON, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 __________

The City is a defendant in various lawsuits at September 30, 2015. The estimated liability for probable losses, as a result of the lawsuits, was determined based on advice from legal counsel after giving consideration for insurance coverage and, in certain instances, the Florida statutory limitations of governmental liability, and is included in the estimated liability for self-insured claims in the internal service fund (see Note 13). Although the ultimate outcome of these lawsuits is not presently determinable, it is the opinion of management, based on advice from legal counsel, that the amount of losses resulting from the above litigation in excess of the amount accrued as of September 30, 2015, would not have a material adverse effect on the financial position of the City.

16. Boca Raton Community Redevelopment Agency Pursuant to Florida Statute 163.387, listed below is a summary of the sources and

amounts of deposits to, and the purpose and amounts of withdrawals from, the Community Redevelopment Agency Funds (CRA) for the fiscal year ended September 30, 2015:

Deposits Withdrawals

Source of deposits: Tax increment revenues $ 7,183,269 Lease revenues 1,561,772 Investment income 48,052 Other 2,285,452 Purpose of withdrawals: Debt service – principal $ 2,987,363 Debt service – interest 3,668,737 Salaries and benefits 426,424 Professional services 170,157 Advertising 1,798 Reimbursement for services 2,000,000 Other contractual services 959 Insurance premiums 12,400 IT technology 9,394 Supplies 15,534 Dues and subscriptions 1,439 Miscellaneous 77,217 Total $ 11,078,545 $ 9,371,422

91

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CITY OF BOCA RATON, FLORIDA PENSION FUNDS

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

General Employees' Pension Plan:

Measurement

Year 2015

Measurement Year 2014

Total Pension Liability Service cost $ 3,952,877 $ 4,070,341 Interest 15,878,172 15,543,810 Differences between expected and actual experience (1,726,306) (3,613,328) Benefit payments, including refunds of

member contributions (12,472,856) (10,934,813) Net Change in Total Pension Liability 5,631,887 5,066,010 Total Pension Liability - Beginning 200,760,699 195,694,689 Total Pension Liability - Ending (a) $ 206,392,586 $ 200,760,699  

Plan Fiduciary Net Position

Contributions - employer 3,925,569 3,744,111 Contributions - member 2,335,348 2,360,378 Net investment income (loss) (2,130,562) 19,283,849 Benefit payments, including refunds of

member contributions (12,472,856) (10,934,813) Administrative expense (90,032) (243,981) Other 54,539

Net Change in Plan Fiduciary Net Position (8,377,994) 14,209,544 Plan Fiduciary Net Position - Beginning 203,220,179 189,010,635 Plan Fiduciary Net Position - Ending (b) $ 194,842,185 $ 203,220,179 Net Pension Liability (Asset)- Ending (a) - (b) $ 11,550,401 $ (2,459,480)  

Plan Fiduciary Net Position as a Percentage of the

Total Pension Liability 94.40% 101.23% Covered Employee Payroll 35,658,133 34,835,028 Net Pension Liability (Asset) as a Percentage of

Covered-Employee Payroll 32.39% -7.06%

This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

92

CITY OF BOCA RATON, FLORIDA PENSION FUNDS

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS

General Employees' Pension Plan:

2015 2014 Actuarially determined contribution $ 3,925,569 $ 3,744,111 Actual contributions 3,925,569 3,744,111 Contribution deficiency (excess) $ - $ -

Covered-employee payroll $ 35,658,133 $ 34,835,028 Actual contributions as a percentage of

covered-employee payroll 11.01% 10.75%

Notes to Schedule Valuation date: October 1, 2013 Actuarially determined contribution rates are calculated as of October 1, 1 year prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to determine contribution rates: Measurement date October 1 Actuarial cost method Entry age Asset valuation method 4-year smoothing Salary increases varies Inflation 3.00% Investment rate of return 8.00% Mortality rates were based on the RP-2000 Generational Mortality Table for healthy Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA.

This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

93

CITY OF BOCA RATON, FLORIDA PENSION FUNDS

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

Police & Firefighters' Retirement System:

Measurement

Year 2015

Measurement Year 2014

MeasurementYear 2013

Total Pension Liability Service cost $ 8,019,243 $ 8,842,600 $ 8,187,593 Interest 31,100,803 30,257,546 28,465,767 Changes of benefit terms (12,002,331) Differences between expected and actual experience 2,110,050 Transfer from General Employees' plan 132,304 Contributions - buy back 51,514 28,668 Benefit payments, including refunds of

member contributions (15,478,755) (16,310,699) (13,511,539)Net Change in Total Pension Liability 13,800,524 22,950,419 23,141,821 Total Pension Liability - Beginning 400,482,505 377,532,086 354,390,265 Total Pension Liability - Ending (a) $ 414,283,029 $ 400,482,505 $ 377,532,086        

Plan Fiduciary Net Position

Contributions - employer 11,352,729 13,182,553 12,419,043 Contributions - State 3,198,125 2,868,153 2,843,696 Contributions - member 3,109,262 2,985,855 2,981,727 Contributions - buy back 51,514 28,668 Transfer from General Employees' plan 132,304 Net investment income 2,205,514 26,241,511 34,407,247 Benefit payments, including refunds of

member contributions (15,478,755) (16,310,699) (13,511,539)Administrative expense (222,131) (362,469) (444,233)Other 5,593

Net Change in Plan Fiduciary Net Position 4,216,258 28,765,876 38,701,534 Plan Fiduciary Net Position - Beginning 312,071,251 283,305,375 244,603,841 Plan Fiduciary Net Position - Ending (b) $ 316,287,509 $ 312,071,251 $ 283,305,375 Net Pension Liability (Asset)- Ending (a) - (b) $ 97,995,520 $ 88,411,254 $ 94,226,711        

Plan Fiduciary Net Position as a Percentage of the

Total Pension Liability (Asset) 76.35% 77.92% 75.04% Covered Employee Payroll 40,643,497 40,013,531 38,422,440 Net Pension Liability as a Percentage of

Covered-Employee Payroll 241.11% 220.95% 245.24%

This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

94

CITY OF BOCA RATON, FLORIDA PENSION FUNDS

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS

Police & Firefighters' Retirement System:

2015 2014 2013 Actuarially determined contribution $ 14,550,854 $ 14,226,720 $ 15,099,422 Actual contributions 14,550,854 16,050,706 15,262,739 Contribution deficiency (excess) $ - $ (1,823,986) $ (163,317)       

Covered-employee payroll $ 40,643,497 $ 40,013,531 $ 38,422,440 Actual contributions as a percentage of

covered-employee payroll 35.80% 40.11% 39.72%

Notes to Schedule Valuation date: October 1, 2013 Actuarially determined contribution rates are calculated as of October 1, 1 year prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to determine contribution rates: Measurement date October 1 Actuarial cost method Entry age Amortization method Level percentage of pay, closed Remaining amortization period 30 years (as of 10/1/2013) Asset valuation method 4-year smoothing, with an 80%/115% corridor Salary increases 4.5% per annum Inflation 3.00% Investment rate of return 8.00% Mortality rates were based on the RP-2000 Generational Mortality Table for healthy Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA.

This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

95

CITY OF BOCA RATON, FLORIDA PENSION FUNDS

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

Executive Employees' Retirement Plan:

Measurement

Year 2015

Measurement Year 2014

Total Pension Liability Service cost $ 830,044 $ 807,122 Interest 3,130,704 2,970,466 Changes of benefit terms Differences between expected and actual experience (145,142) 327,026 Changes of assumptions 1,055,238 Benefit payments, including refunds of

member contributions (1,360,326) (1,088,490) Net Change in Total Pension Liability 2,455,280 4,071,362 Total Pension Liability - Beginning 41,592,839 37,521,477 Total Pension Liability - Ending (a) $ 44,048,119 $ 41,592,839  

Plan Fiduciary Net Position

Contributions - employer 1,457,248 1,458,974 Contributions - member 635,026 717,085 Transfer from other pension plans 21,680 Net investment income 85,342 2,784,339 Benefit payments, including refunds of

member contributions (1,360,326) (1,088,489) Administrative expense (27,327) (38,294)

Net Change in Plan Fiduciary Net Position 811,643 3,833,615 Plan Fiduciary Net Position - Beginning 31,710,410 27,876,795 Plan Fiduciary Net Position - Ending (b) $ 32,522,053 $ 31,710,410 Net Pension Liability (Asset)- Ending (a) - (b) $ 11,526,066 $ 9,882,429  

Plan Fiduciary Net Position as a Percentage of the

Total Pension Liability 73.83% 76.24% Covered Employee Payroll 6,760,812 6,176,498 Net Pension Liability (Asset) as a Percentage of

Covered-Employee Payroll 170.48% 160.00%

This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

96

CITY OF BOCA RATON, FLORIDA PENSION FUNDS

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS

Executive Employees' Retirement Plan:

2,015 2,014 Actuarially determined contribution $ 1,570,185 $ 1,572,044 Actual contributions 1,566,542 1,572,044 Contribution deficiency (excess) $ 3,643 $ -  

Covered-employee payroll $ 6,760,812 $ 6,176,498 Actual contributions as a percentage of

covered-employee payroll 23.17% 25.45%

Notes to Schedule Valuation date: October 1, 2013 Actuarially determined contribution rates are calculated as of October 1, 1 year prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to determine contribution rates: Measurement date October 1 Actuarial cost method Entry age Asset valuation method 5-year smoothing Salary increases varies Inflation 3.00% Investment rate of return 7.50% Mortality rates were based on the RP-2000 Generational Mortality Table for healthy Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA.

This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

97

CITY OF BOCA RATON, FLORIDA OTHER POST EMPLOYMENT BENEFITS

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS

(dollar amount in thousands) (Unaudited)

(a) (b) (b-a) (a/b) (c) (b-a)/c

Actuarial Valuation Date

October 1

Actuarial Value of Assets

Actuarial Accrued

Liability (AAL)Entry Age

Unfunded

AAL (UAAL)Funded Ratio

Annual

Covered Payroll

UAAL as % of Covered

Payroll

10/1/09 - $ 4,779 $ (4,779) 0.00% $ 51,801 9.23%10/1/10 - 5,078 (5,078) 0.00% 48,839 10.40%10/1/11 - 7,340 (7,340) 0.00% 49,957 14.69%10/1/12 - 7,108 (7,108) 0.00% 49,553 14.34%10/1/13 - 5,730 (5,730) 0.00% 46,324 12.37%10/1/14 - 6,005 (6,005) 0.00% 46,324 12.96%

98

CITY OF BOCA RATON, FLORIDAGENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESPROPERTY TAXES $ 53,050,000 $ 53,050,000 $ 53,737,675 $ 687,675EXCISE TAXES

Utility 17,460,400 17,460,400 17,351,353 (109,047)Total excise taxes 17,460,400 17,460,400 17,351,353 (109,047)

FRANCHISE TAXESElectrical 10,200,000 10,200,000 10,385,030 185,030Television 1,250,000 1,250,000 1,194,276 (55,724)Natural gas 140,000 140,000 173,692 33,692Solid waste 1,025,000 1,025,000 1,139,245 114,245

Total franchise taxes 12,615,000 12,615,000 12,892,243 277,243Total taxes 83,125,400 83,125,400 83,981,271 855,871

LICENSES AND PERMITSLocal business taxes 1,507,000 1,507,000 1,631,200 124,200Beverage licenses 120,000 120,000 141,430 21,430Building permits 8,000,000 8,000,000 14,594,614 6,594,614Other 1,243,000 1,243,000 1,832,558 589,558

Total licenses and permits 10,870,000 10,870,000 18,199,802 7,329,802INTERGOVERNMENTAL

State revenue sharing 9,520,600 9,520,600 9,841,584 320,984Palm Beach County 2,400,000 2,400,000 2,491,485 91,485Beach tax district 1,405,000 1,405,000 1,035,843 (369,157)Other Municipality 119,000 119,000 118,720 (280)

Total intergovernmental 13,444,600 13,444,600 13,487,632 43,032CHARGES FOR SERVICES

Physical environment 161,000 161,000 136,858 (24,142)Planning and zoning fees 1,030,000 1,030,000 1,430,845 400,845Fire services 9,853,800 9,853,800 10,373,890 520,090Police services 390,000 390,000 310,244 (79,756)Library 252,100 252,100 250,745 (1,355)Recreation services 2,696,600 2,696,600 2,657,639 (38,961)Amphitheater services 102,000 102,000 103,277 1,277Parking 400,000 400,000 489,712 89,712Administrative service charge 7,995,500 7,995,500 8,007,500 12,000Other charges for services 125,000 125,000 269,447 144,447

Total charges for services 23,006,000 23,006,000 24,030,157 1,024,157FINES AND FORFEITURES 2,327,200 2,327,200 1,524,432 (802,768)

INVESTMENT EARNINGS (LOSS) 500,000 500,000 371,270 (128,730)MISCELLANEOUS 10,000 10,000 81,433 71,433

Total revenues 133,283,200 133,283,200 141,675,997 8,392,797

EXPENDITURESCurrent:

GENERAL GOVERNMENTCity council 188,000 188,000 163,963 24,037

City managerAdministration 1,218,100 1,364,600 1,364,428 172City clerk 781,700 783,700 718,890 64,810Board and committees 75,300 75,300 67,648 7,652Human resources 1,188,200 1,191,200 1,170,776 20,424Cultural arts 1,027,500 918,000 755,226 162,774

Total city manager 4,290,800 4,332,800 4,076,968 255,832

See accompanying note to required supplementary information. 99

CITY OF BOCA RATON, FLORIDAGENERAL FUND (continued)

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

Financial servicesFinancial services administration $ 650,000 $ 662,900 $ 660,270 $ 2,630Pension 374,000 350,500 252,650 97,850Accounting 522,100 522,100 389,224 132,876Treasury 288,700 288,700 236,210 52,490Accounts payable 256,400 256,400 243,248 13,152Purchasing 852,900 854,600 716,726 137,874Risk management 159,500 161,100 160,952 148Office of management and budget 406,000 415,000 414,901 99Parking 540,900 544,700 502,961 41,739

Total financial services 4,050,500 4,056,000 3,577,142 478,858

City attorney 1,204,400 1,204,400 1,199,781 4,619

Development servicesDevelopment services administration 577,700 577,700 433,378 144,322Code compliance/licensing 5,086,700 5,113,600 4,797,928 315,672Planning and zoning 1,228,900 1,217,800 927,573 290,227

Total development services 6,893,300 6,909,100 6,158,879 750,221

Other non-departmental services 5,092,700 5,179,400 4,264,946 914,454Total general government 21,719,700 21,869,700 19,441,679 2,428,021

PUBLIC SAFETYLaw enforcement

Communications/dispatch 2,366,900 2,370,800 2,049,798 321,002Community services 12,652,900 12,860,800 11,672,747 1,188,053Bureau of field services 26,167,600 26,167,600 24,760,190 1,407,410Biological Processing Lab 165,400 165,400 138,531 26,869

Total law enforcement 41,352,800 41,564,600 38,621,266 2,943,334

Fire rescue servicesFire administration 3,742,800 3,738,900 3,493,126 245,774Logistics and support 3,168,000 3,191,600 3,040,268 151,332Fire operations 33,190,000 32,965,000 32,298,813 666,187Fire and life safety 1,585,700 1,874,800 1,872,490 2,310

Total fire rescue services 41,686,500 41,770,300 40,704,697 1,065,603Total public safety 83,039,300 83,334,900 79,325,963 4,008,937

PHYSICAL ENVIRONMENTPhysical environment administration 902,000 910,900 910,700 200Dredge 488,400 497,400 486,487 10,913Facilities management 3,171,700 3,324,000 2,823,477 500,523

Total physical environment 4,562,100 4,732,300 4,220,664 511,636

TRANSPORTATIONStreets 993,500 984,600 838,425 146,175Traffic/special projects 3,752,000 3,799,300 3,367,261 432,039Engineering-survey 394,100 394,100 292,212 101,888Engineering-design 490,500 490,500 466,684 23,816

Total transportation 5,630,100 5,668,500 4,964,582 703,918

See accompanying note to required supplementary information. 100

CITY OF BOCA RATON, FLORIDAGENERAL FUND (continued)

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

PARKS AND RECREATIONParks and rec administration $ 1,603,400 $ 1,603,400 $ 1,600,236 $ 3,164Library 4,409,900 4,409,900 4,211,125 198,775Community center 630,300 630,300 615,057 15,243Train depot 50,200 50,200 50,128 72Camp programs 755,800 755,800 560,499 195,301Athletics 494,300 499,300 423,356 75,944Skateboard park 55,500 55,500 42,105 13,395Special programs 447,400 447,400 276,934 170,466Aquatics 428,700 440,700 419,772 20,928Tennis center 264,900 264,900 227,517 37,383Special interest activity 466,500 478,500 447,683 30,817Ocean rescue 1,978,900 1,973,900 1,895,651 78,249Parks District I 3,805,800 3,798,200 3,343,609 454,591Parks District II 1,040,800 1,069,400 974,226 95,174Mizner Park 741,300 710,500 639,123 71,377Park rangers 303,100 340,900 340,802 98Irrigation 915,200 915,200 881,087 34,113

Total parks and recreation 18,392,000 18,444,000 16,948,910 1,495,090

Total expenditures 133,343,200 134,049,400 124,901,798 9,147,602

Excess (deficiency) of revenues over expenditures (60,000) (766,200) 16,774,199 17,540,399

OTHER FINANCING SOURCES (USES)Transfers in:

Downtown Infrastructure Fund 21,000 21,000 21,000Total transfers in 21,000 21,000 21,000

Transfers out:Right of Way Beautification Fund (1,500,000) (1,500,000) (1,500,000)Information Technology Fund (8,100) (8,100) (8,100)Fleet Management Fund (1,578,200) (1,578,200) (1,578,200)

Total transfers out (3,086,300) (3,086,300) (3,086,300)

Total other financing uses (3,065,300) (3,065,300) (3,065,300)

Net change in fund balance $ (3,125,300) $ (3,831,500) 13,708,899 $ 17,540,399

Fund balance - beginning 45,327,670

Fund balance - ending $ 59,036,569

See accompanying note to required supplementary information. 101

CITY OF BOCA RATON, FLORIDACOMMUNITY REDEVELOPMENT AGENCY - MIZNER PARK REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESTaxes $ 7,193,300 $ 7,193,300 $ 7,183,269 $ (10,031)Charges for services 1,180,000 1,180,000 1,561,772 381,772Investment earnings (loss) 20,000 20,000 15,999 (4,001)

Total revenues 8,393,300 8,393,300 8,761,040 367,740

EXPENDITURESCurrent:

Community development 2,000,000 2,000,000 2,000,000Total expenditures 2,000,000 2,000,000 2,000,000

Excess (deficiency) of revenues over expenditures 6,393,300 6,393,300 6,761,040 367,740

OTHER FINANCING USESTransfers in 100,000 100,000 100,000Transfers out (6,601,100) (6,601,100) (6,601,100)

Total other financing uses (6,501,100) (6,501,100) (6,501,100)

Net change in fund balance $ (107,800) $ (107,800) 259,940 $ 367,740

Fund balance - beginning 1,313,538

Fund balance - ending $ 1,573,478

See accompanying note to required supplementary information

102

CITY OF BOCA RATON, FLORIDABEACH AND PARK OPERATIONS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESIntergovernmental $ 15,835,300 $ 16,030,500 $ 12,537,299 $ (3,493,201)Charges for services 2,847,100 2,847,100 2,458,533 (388,567)

Total revenues 18,682,400 18,877,600 14,995,832 (3,881,768)

EXPENDITURESCurrent:

Parks and recreation 15,906,400 15,993,300 14,725,650 1,267,650Capital outlay 2,717,400 2,825,700 211,582 2,614,118Total expenditures 18,623,800 18,819,000 14,937,232 3,881,768

Excess (deficiency) of revenues over expenditures 58,600 58,600 58,600

OTHER FINANCING USESTransfers out (58,600) (58,600) (58,600)

Total other financing uses (58,600) (58,600) (58,600)

Net change in fund balance $ $ $

Fund balance - beginning

Fund balance - ending $

See accompanying note to required supplementary information

103

CITY OF BOCA RATON, FLORIDA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION

SEPTEMBER 30, 2015

Stewardship, Compliance and Accountability A. Budgetary Information General governmental revenue and expenditures accounted for in budgetary funds are

controlled by a formal integrated budgetary accounting system in accordance with various legal requirements, which govern the City's operations. Annual budgets have been legally adopted on a basis consistent with accounting principles generally accepted in the United States of America (GAAP) for the General Fund, Special Revenue Funds (except the General Trust Fund), Debt Service Funds and Capital Projects Funds. Budgets in governmental funds are encumbered upon issuance of purchase orders, contracts or other forms of legal commitments. While appropriations lapse at the end of the fiscal year, the succeeding year’s budget ordinance specifically provides for the re-appropriation of year end encumbrances.

The City Manager is authorized to transfer budgeted amounts within departments within

any fund; however, any revisions that increase the total expenditures of any department or fund must be approved by the City Council. The level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department (by fund) level. All necessary supplemental appropriations are adopted by the City Council as part of a quarterly budget review process and are included in the “Final Budget” columns on the schedule of revenues, expenditures and changes in fund balance – budget and actual.

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Major Governmental Fund

CAPITAL PROJECTS FUND The capital projects fund is used to account for the acquisition and construction of major capital facili-ties other than those financed by proprietary funds and trust funds. Five-Year Capital Improvement Program Fund -- To account for various building, park and street con-struction projects. Financing is provided by general tax revenue, bond proceeds, excise tax and inter-est income.

CITY OF BOCA RATON, FLORIDAFIVE YEAR CAPITAL IMPROVEMENT PROGRAM FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESTaxes $ 6,755,000 $ 6,755,000 $ 6,936,922 $ 181,922Intergovernmental 6,420,200 6,420,200 1,272,596 (5,147,604)Donations in lieu of land 196,100 196,100 152,683 (43,417)Investment earnings (loss) 225,000 225,000 189,233 (35,767)

Total revenues 13,596,300 13,596,300 8,551,434 (5,044,866)

EXPENDITURESGeneral government 241,600 241,600 241,208 392Public safety 834,000 832,728 1,272Transportation 1,401,000 1,398,689 2,311Parks & recreation 248,000 247,550 450Capital outlay:

Capital outlay 28,298,700 27,704,000 343,491 27,360,509Total expenditures 28,540,300 30,428,600 3,063,666 27,364,934

Excess (deficiency) of revenues over expenditures (14,944,000) (16,832,300) 5,487,768 22,320,068

OTHER FINANCING SOURCES (USES)Transfers out (1,948,200) (1,948,200) (1,948,200)

Total other financing uses (1,948,200) (1,948,200) (1,948,200)

Net change in fund balance $ (16,892,200) $ (18,780,500) 3,539,568 $ 22,320,068

Fund balance - beginning 26,031,245

Fund balance - ending $ 29,570,813

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Non-Major Governmental Funds

SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expendi-ture for particular purposes. Community Development Block Grant Program Fund -- To account for revenue from a grant agree-ment between the City and the U.S. Department of Housing and Urban Development (HUD) and ex-penditures for qualified neighborhood revitalization. The program includes expenditures for housing rehabilitation, clearance of housing and relocation of families, the construction of new, low and moderate income housing units, and public improvements to the neighborhood. Housing Assistance Trust Fund -- To account for funds received from the State Housing Initiatives Partnership for the purpose of providing affordable housing in the City. Law Enforcement Trust Fund -- To account for funds received from State and Federal forfeitures. Transportation Fund -- To account for local option gas tax restricted for roadway program expendi-tures. Right of Way Beautification Fund -- To account for excise tax levied specifically for the comprehen-sive median beautification program established in 1984. Mizner Park Lock Box Fund -- To account for the 1.5% increase in excise tax specifically for the repay-ment of the Mizner Park Tax Increment Revenue Bonds in the event that pledged revenues are insuf-ficient to meet the debt service requirements. Community Redevelopment Agency Operating Fund -- To account for the general operations of the Community Redevelopment Agency, which encourages development in the downtown area. Economic Development Fund -- To support economic development activities benefitting the City, including a variety of incentive programs. General Trust Fund -- To account for moneys received as donations, which have been restricted to expenditures for specified purposes. Grant Funds -- To account for revenues and expenditures of specific state and federally funded grants.

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PERMANENT FUND Perpetual Care Fund -- To account for moneys received for the purpose of providing perpetual care for the City's cemetery and mausoleum.

DEBT SERVICE FUNDS

Debt Service Funds are used to account for resources accumulated and payments made for principal and interest on long-term debt of governmental funds. City Debt Service Fund -- To account for the payment of principal and interest, and fiscal charges on the City's general obligation bonds which are payable from ad valorem taxes; and the City's revenue bonds and notes payable which are payable from non ad valorem revenues. Community Redevelopment Agency Debt Service Fund -- To account for the payment of principal and interest and fiscal charges of the Community Redevelopment Agency's tax increment revenue bonds (Mizner Park) which are payable from tax increment revenues and land lease revenues.

CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facili-ties other than those financed by proprietary funds and trust funds. Right of Way Acquisition Fund -- To account for the cost of acquiring right of way property. Revenue is provided from land sales proceeds and interest income. Park Land Dedication Fund -- To account for the cost of buying and constructing park developments. Financing is being provided by donations from developers as required by City ordinance. Downtown Land Dedication Fund -- To account for the cost of buying and constructing park develop-ments in the downtown area. Financing is being provided by donations from developers in the downtown as required by City ordinance. Downtown Infrastructure Fund -- To account for the financing and implementation of the downtown infrastructure program. Library Improvements Fund – To account for the construction, renovation and furnishing of the City of Boca Raton’s Libraries.

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CITY OF BOCA RATON, FLORIDANON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETSEPTEMBER 30, 2015

SpecialRevenue Permanent Debt Service

CapitalProjects

TotalNonmajor

GovernmentalFunds

ASSETSCash and cash equivalents $ 22,207,338 $ 5,312,292 $ 9,159,316 $ 36,678,946Investments 7,318,578 283,622 3,763,066 11,365,266Receivables, net:

Accounts receivable $ 58,542 58,542Assessments 129,352 129,352Interest 4,916 1,245 8,022 14,183

Due from other governmental units 536,733 536,733Restricted:

Cash and cash equivalents 339,709 2,792,856 3,132,565Investments 139,612 1,147,797 1,287,409Interest receivable on investments 129 1,009 1,138

Total assets 30,547,015 4,000,204 5,597,159 13,059,756 53,204,134

DEFERRED OUTFLOWS OF RESOURCESTotal deferred outflows of resourcesTotal assets and deferred outflows ofresources $ 30,547,015 $ 4,000,204 $ 5,597,159 $ 13,059,756 $ 53,204,134

LIABILITIESAccounts payable and accrued liabilities $ 324,609 $ 324,609Performance bonds and escrow funds 532,330 $ 4,000 536,330Due to other funds 142,837 142,837

Total liabilities 999,776 4,000 1,003,776

DEFERRED INFLOWS OF RESOURCESTotal deferred inflows of resources

FUND BALANCESNon-spendable:

Perpetual care, cemetery 1,385,069 1,385,069Perpetual care, mausoleum 2,611,135 2,611,135

Restricted for:Debt service 6,233,079 $ 5,597,159 11,830,238Housing 531,532 531,532Law enforcement 1,211,259 1,211,259Transportation 9,980,626 9,980,626Right of way beautification 2,117,215 2,117,215Downtown 2,620,211 $ 593,635 3,213,846Economic development 6,850,250 6,850,250Land dedication 9,762,797 9,762,797Library 372,096 372,096

Committed to:Parking 3,067 3,067Right of way acquisition 2,331,228 2,331,228

Total fund balances 29,547,239 3,996,204 5,597,159 13,059,756 52,200,358

Total liabilities, deferred inflows ofresources and fund balances $ 30,547,015 $ 4,000,204 $ 5,597,159 $ 13,059,756 $ 53,204,134

106

CITY OF BOCA RATON, FLORIDANONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

SpecialRevenue Permanent

DebtService

CapitalProjects

TotalNonmajor

GovernmentalFunds

REVENUESTaxes $ 5,551,323 $ 5,101,834 $ 10,653,157Intergovernmental 906,517 906,517Charges for services 2,285,452 $ 209,279 2,494,731Fines and forfeitures 679,186 679,186Special assessments $ 1,505,634 1,505,634Donations in lieu of land 313,045 4,176,340 4,489,385Investment earnings (loss) 163,132 28,096 25,566 79,679 296,473Miscellaneous 139,405 139,405

Total revenues 10,038,060 237,375 5,127,400 5,761,653 21,164,488

EXPENDITURESCurrent:

Law enforcement 255,140 255,140Transportation 1,172,938 1,172,938Community development 1,940,306 1,940,306Parks and recreation 3,898,242 3,898,242Capital outlay 124,926 180,521 305,447

Debt service:Principal 7,722,363 7,722,363Interest 5,081,592 5,081,592Total expenditures 7,391,552 12,803,955 180,521 20,376,028

Excess (deficiency) of revenues over expenditures 2,646,508 237,375 (7,676,555) 5,581,132 788,460

OTHER FINANCING SOURCES (USES)Transfers in 1,500,000 7,996,600 9,496,600Transfers out (111,500) (521,500) (1,416,500) (2,049,500)

Total other financing sources (uses) 1,388,500 (521,500) 7,996,600 (1,416,500) 7,447,100

Net change in fund balances 4,035,008 (284,125) 320,045 4,164,632 8,235,560

Fund balances - beginning 25,512,231 4,280,329 5,277,114 8,895,124 43,964,798

Fund balances - ending $ 29,547,239 $ 3,996,204 $ 5,597,159 $ 13,059,756 $ 52,200,358

107

CITY OF BOCA RATON, FLORIDANON-MAJOR SPECIAL REVENUE FUNDS

COMBINING BALANCE SHEETSEPTEMBER 30, 2015

CommunityDevelopmentBlock Grant

Program

SHIPHousing

AssistanceTrust Fund

LawEnforcement

TrustFund

Transpor-tationFund

Right of WayBeautification

Fund

ASSETSCash and cash equivalents $ 531,804 $ 1,013,878 $ 6,841,400 $ 1,645,429Investments 202,649 2,812,221 676,232Receivables, net:

Interest 203 607 1,903Due from other governmental units $ 72,132 342,054Restricted:

Cash and cash equivalentsInvestmentsInterest receivable on investments

Total assets 72,132 531,804 1,216,730 9,996,282 2,323,564

DEFERRED OUTFLOWS OFRESOURCES

Total deferred outflows of resources

LIABILITIESAccounts payable and accrued liabilities $ 24,158 $ 272 $ 5,471 $ 15,656 $ 206,349Performance bonds and escrow fundsDue to other funds 47,974

Total liabilities 72,132 272 5,471 15,656 206,349

DEFERRED INFLOWS OF RESOURCESTotal deferred inflows of resources

FUND BALANCESRestricted for:

Debt serviceHousing 531,532Law enforcement 1,211,259Transportation 9,980,626Right of way beautification 2,117,215DowntownEconomic development

Committed to:Parking

Total fund balances 531,532 1,211,259 9,980,626 2,117,215

Total liabilities, deferred inflows ofresources and fund balances $ 72,132 $ 531,804 $ 1,216,730 $ 9,996,282 $ 2,323,564

108

MiznerPark

Lock BoxFund

CommunityRedevelopment

AgencyOperating Fund

EconomicDevelopment

FundGeneral

Trust FundGrantFunds

Total NonmajorSpecial

Revenue Funds

$ 6,233,079 $ 1,086,923 $ 4,854,825 $ 22,207,3381,632,259 1,995,217 7,318,578

1,995 208 4,916$ 122,547 536,733

$ 339,709 339,709139,612 139,612

129 1296,233,079 2,721,177 6,850,250 479,450 122,547 30,547,015

$ 45,019 $ 27,684 $ 324,60952,880 $ 479,450 532,330

94,863 142,83797,899 479,450 122,547 999,776

$ 6,233,079 6,233,079531,532

1,211,2599,980,6262,117,215

2,620,211 2,620,211$ 6,850,250 6,850,250

3,067 3,067

6,233,079 2,623,278 6,850,250 29,547,239

$ 6,233,079 $ 2,721,177 $ 6,850,250 $ 479,450 $ 122,547 $ 30,547,015

109

CITY OF BOCA RATON, FLORIDANON-MAJOR SPECIAL REVENUE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

CommunityDevelopmentBlock Grant

Program

SHIPHousing

AssistanceTrust Fund

LawEnforcement

TrustFund

Transpor-tationFund

Right of WayBeautification

Fund

REVENUESTaxes $ 2,119,634 $ 2,431,689Intergovernmental $ 377,463 $ 417,522Charges for servicesFines and forfeitures $ 679,186Donations in lieu of land 313,045Investment earnings (loss) 314 6,216 58,150 16,987Miscellaneous 132,600 6,805

Total revenues 377,463 550,436 685,402 2,177,784 2,768,526

EXPENDITURESCurrent:

Law enforcement 239,768Transportation 1,089,887Community development 377,463 169,022Parks and recreation 3,898,242Capital outlay 54,332 57,485

Total expenditures 377,463 169,022 239,768 1,144,219 3,955,727

Excess (deficiency) of revenues over expenditures 381,414 445,634 1,033,565 (1,187,201)

OTHER FINANCING SOURCES (USES)Transfers in 1,500,000Transfers out (9,500)

Total other financing sources (uses) 1,490,500

Net change in fund balances 381,414 445,634 1,033,565 303,299

Fund balances - beginning 150,118 765,625 8,947,061 1,813,916

Fund balances - ending $ $ 531,532 $ 1,211,259 $ 9,980,626 $ 2,117,215

110

MiznerPark

Lock BoxFund

CommunityRedevelopment

AgencyOperating Fund

EconomicDevelopment

FundGrantFunds

Total NonmajorSpecial

Revenue Funds

$ 1,000,000 $ 5,551,323$ 111,532 906,517

$ 2,285,452 2,285,452679,186313,045

$ 20,809 17,101 43,555 163,132139,405

20,809 2,302,553 1,043,555 111,532 10,038,060

15,372 255,14083,051 1,172,938

715,321 678,500 1,940,3063,898,242

13,109 124,926715,321 678,500 111,532 7,391,552

20,809 1,587,232 365,055 2,646,508

1,500,000(100,000) (2,000) (111,500)(100,000) (2,000) 1,388,500

20,809 1,487,232 363,055 4,035,008

6,212,270 1,136,046 6,487,195 25,512,231

$ 6,233,079 $ 2,623,278 $ 6,850,250 $ $ 29,547,239

111

CITY OF BOCA RATON, FLORIDACOMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESIntergovernmental $ 1,088,400 $ 1,088,500 $ 377,463 $ (711,037)

Total revenues 1,088,400 1,088,500 377,463 (711,037)

EXPENDITURESCurrent:

Community development 1,066,600 891,100 377,463 513,637Capital outlay 21,800 197,400 197,400

Total expenditures 1,088,400 1,088,500 377,463 711,037

Net change in fund balance $ $ $

Fund balance - beginning

Fund balance - ending $

112

CITY OF BOCA RATON, FLORIDAHOUSING ASSISTANCE TRUST FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESIntergovernmental $ 393,000 $ 417,600 $ 417,522 $ (78)Investment earnings (loss) 314 314Miscellaneous 132,600 132,600

Total revenues 393,000 550,200 550,436 236

EXPENDITURESCurrent:

Community development 525,200 682,400 169,022 513,378Total expenditures 525,200 682,400 169,022 513,378

Net change in fund balance $ (132,200) $ (132,200) 381,414 $ 513,614

Fund balance - beginning 150,118

Fund balance - ending $ 531,532

113

CITY OF BOCA RATON, FLORIDALAW ENFORCEMENT TRUST FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESFines and forfeitures $ 240,000 $ 240,000 $ 679,186 $ 439,186Investment earnings (loss) 5,000 5,000 6,216 1,216

Total revenues 245,000 245,000 685,402 440,402

EXPENDITURESCurrent:

Law enforcement 351,000 351,000 239,768 111,232Total expenditures 351,000 351,000 239,768 111,232

Net change in fund balance $ (106,000) $ (106,000) 445,634 $ 551,634

Fund balance - beginning 765,625

Fund balance - ending $ 1,211,259

114

CITY OF BOCA RATON, FLORIDATRANSPORTATION FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESTaxes $ 2,025,200 $ 2,025,200 $ 2,119,634 $ 94,434Investment earnings (loss) 50,000 50,000 58,150 8,150

Total revenues 2,075,200 2,075,200 2,177,784 102,584

EXPENDITURESCurrent:

Transportation 1,089,887 (1,089,887)Capital outlay 3,620,400 5,111,900 54,332 5,057,568

Total expenditures 3,620,400 5,111,900 1,144,219 3,967,681

Net change in fund balance $ (1,545,200) $ (3,036,700) 1,033,565 $ 4,070,265

Fund balance - beginning 8,947,061

Fund balance - ending $ 9,980,626

115

CITY OF BOCA RATON, FLORIDARIGHT-OF-WAY BEAUTIFICATION FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESTaxes $ 2,353,600 $ 2,353,600 $ 2,431,689 $ 78,089Donations in lieu of land 100,000 100,000 313,045 213,045Investment earnings (loss) 8,600 8,600 16,987 8,387Miscellaneous 6,805 6,805

Total revenues 2,462,200 2,462,200 2,768,526 306,326

EXPENDITURESCurrent:

Parks and recreation 4,185,200 4,262,700 3,898,242 364,458Capital outlay 284,400 284,400 57,485 226,915

Total expenditures 4,469,600 4,547,100 3,955,727 591,373Excess (deficiency) of revenues over expenditures (2,007,400) (2,084,900) (1,187,201) 897,699

OTHER FINANCING SOURCES (USES)Transfers in 1,500,000 1,500,000 1,500,000Transfers out (9,500) (9,500) (9,500)

Total other financing sources (uses) 1,490,500 1,490,500 1,490,500

Net change in fund balance $ (516,900) $ (594,400) 303,299 $ 897,699

Fund balance - beginning 1,813,916

Fund balance - ending $ 2,117,215

116

CITY OF BOCA RATON, FLORIDAMIZNER PARK LOCK BOX FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESInvestment earnings (loss) $ 30,000 $ 30,000 $ 20,809 $ (9,191)

Total revenues 30,000 30,000 20,809 (9,191)

EXPENDITURES

Net change in fund balance $ 30,000 $ 30,000 20,809 $ (9,191)

Fund balance - beginning 6,212,270

Fund balance - ending $ 6,233,079

117

CITY OF BOCA RATON, FLORIDACOMMUNITY REDEVELOPMENT AGENCY OPERATING FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESCharges for services $ 1,651,100 $ 1,651,100 $ 2,285,452 $ 634,352Investment earnings (loss) 10,000 10,000 17,101 7,101

Total revenues 1,661,100 1,661,100 2,302,553 641,453

EXPENDITURESCurrent:

Community development 1,045,700 1,196,800 715,321 481,479Capital outlay 270,000 272,200 272,200

Total expenditures 1,315,700 1,469,000 715,321 753,679Excess (deficiency) of revenues over expenditures 345,400 192,100 1,587,232 1,395,132

OTHER FINANCING SOURCES (USES)Transfers out (100,000) (100,000) (100,000)

Total other financing sources (uses) (100,000) (100,000) (100,000)

Net change in fund balance $ 245,400 $ 92,100 1,487,232 $ 1,395,132

Fund balance - beginning 1,136,046

Fund balance - ending $ 2,623,278

118

CITY OF BOCA RATON, FLORIDAECONOMIC DEVELOPMENT FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESTaxes $ 1,000,000 $ 1,000,000 $ 1,000,000Investment earnings (loss) 10,000 10,000 43,555 $ 33,555

Total revenues 1,010,000 1,010,000 1,043,555 33,555

EXPENDITURESCurrent:

Community development 3,425,700 3,425,700 678,500 2,747,200Capital outlay 5,000 5,000 5,000

Total expenditures 3,430,700 3,430,700 678,500 2,752,200Excess (deficiency) of revenues over expenditures (2,420,700) (2,420,700) 365,055 2,785,755

OTHER FINANCING SOURCES (USES)Transfers out (2,000) (2,000) (2,000)

Total other financing sources (uses) (2,000) (2,000) (2,000)

Net change in fund balance $ (2,422,700) $ (2,422,700) 363,055 $ 2,785,755

Fund balance - beginning 6,487,195

Fund balance - ending $ 6,850,250

119

CITY OF BOCA RATON, FLORIDAGRANT FUNDS

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESIntergovernmental $ 138,900 $ 506,300 $ 111,532 $ (394,768)

Total revenues 138,900 506,300 111,532 (394,768)

EXPENDITURESCurrent:

Law enforcement 15,000 22,800 15,372 7,428Transportation 83,051 (83,051)Capital outlay 468,900 828,500 13,109 815,391

Total expenditures 483,900 851,300 111,532 739,768

Net change in fund balance $ (345,000) $ (345,000) $ 345,000

Fund balance - beginning

Fund balance - ending $

120

CITY OF BOCA RATON, FLORIDAPERPETUAL CARE PERMANENT FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESCharges for services $ 115,100 $ 115,100 $ 209,279 $ 94,179Investment earnings (loss) 37,400 37,400 28,096 (9,304)

Total revenues 152,500 152,500 237,375 84,875

OTHER FINANCING SOURCES (USES)Transfers out (521,500) (521,500) (521,500)

Total other financing sources (uses) (521,500) (521,500) (521,500)

Net change in fund balance $ (369,000) $ (369,000) (284,125) $ 84,875

Fund balance - beginning 4,280,329

Fund balance - ending $ 3,996,204

121

CITY OF BOCA RATON, FLORIDANON-MAJOR DEBT SERVICE FUNDS

COMBINING BALANCE SHEETSEPTEMBER 30, 2015

CityDebt Service

Fund

CommunityRedevelopment

Agency DebtService Fund

TotalNon-major Debt

ServiceFunds

ASSETSCash and cash equivalents $ 1,737,314 $ 3,574,978 $ 5,312,292Investments 283,622 283,622Receivables, net:

Interest 1,245 1,245Total assets 1,737,314 3,859,845 5,597,159

DEFERRED OUTFLOWS OF RESOURCESTotal deferred outflows of resources

Total assets and deferred outflows of resources $ 1,737,314 $ 3,859,845 $ 5,597,159

LIABILITIESTotal liabilities

DEFERRED INFLOWS OF RESOURCESTotal deferred inflows of resources

FUND BALANCESRestricted for:

Debt service $ 1,737,314 $ 3,859,845 $ 5,597,159Total fund balances 1,737,314 3,859,845 5,597,159

Total liabilities, deferred inflows ofresources and fund balances $ 1,737,314 $ 3,859,845 $ 5,597,159

122

CITY OF BOCA RATON, FLORIDANON-MAJOR DEBT SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

CityDebt Service

Fund

CommunityRedevelopment

Agency DebtService Fund

TotalNon-major Debt

ServiceFunds

REVENUESTaxes $ 5,101,834 $ 5,101,834Investment earnings (loss) 10,614 $ 14,952 25,566

Total revenues 5,112,448 14,952 5,127,400

EXPENDITURESDebt service:

Principal 4,735,000 2,987,363 7,722,363Interest 1,412,855 3,668,737 5,081,592

Total expenditures 6,147,855 6,656,100 12,803,955

Excess (deficiency) of revenues over expenditures (1,035,407) (6,641,148) (7,676,555)

OTHER FINANCING SOURCES (USES)Transfers in 1,395,500 6,601,100 7,996,600

Total other financing sources (uses) 1,395,500 6,601,100 7,996,600

Net change in fund balances 360,093 (40,048) 320,045

Fund balances - beginning 1,377,221 3,899,893 5,277,114

Fund balances - ending $ 1,737,314 $ 3,859,845 $ 5,597,159

123

CITY OF BOCA RATON, FLORIDACITY DEBT SERVICE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESTaxes $ 5,033,100 $ 5,033,100 $ 5,101,834 $ 68,734Investment earnings (loss) 10,000 10,000 10,614 614

Total revenues 5,043,100 5,043,100 5,112,448 69,348

EXPENDITURESDebt service:

Principal 4,615,000 4,735,000 4,735,000Interest 1,769,800 1,514,200 1,412,855 101,345

Total expenditures 6,384,800 6,249,200 6,147,855 101,345

Excess (deficiency) of revenues over expenditures (1,341,700) (1,206,100) (1,035,407) 170,693

OTHER FINANCING SOURCESTransfers in 1,395,500 1,395,500 1,395,500

Total other financing sources 1,395,500 1,395,500 1,395,500

Net change in fund balance $ 53,800 $ 189,400 360,093 $ 170,693

Fund balance - beginning 1,377,221

Fund balance - ending $ 1,737,314

124

CITY OF BOCA RATON, FLORIDACOMMUNITY REDEVELOPMENT AGENCY DEBT SERVICE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESInvestment earnings (loss) $ 15,000 $ 15,000 $ 14,952 $ (48)

Total revenues 15,000 15,000 14,952 (48)

EXPENDITURESDebt service:

Principal 2,987,400 2,987,400 2,987,363 37Interest 3,672,600 3,672,600 3,668,737 3,863

Total expenditures 6,660,000 6,660,000 6,656,100 3,900

Excess (deficiency) of revenues over expenditures (6,645,000) (6,645,000) (6,641,148) 3,852

OTHER FINANCING SOURCESTransfers in 6,601,100 6,601,100 6,601,100

Total other financing sources 6,601,100 6,601,100 6,601,100

Net change in fund balance $ (43,900) $ (43,900) (40,048) $ 3,852

Fund balance - beginning 3,899,893

Fund balance - ending $ 3,859,845

125

CITY OF BOCA RATON, FLORIDANONMAJOR CAPITAL PROJECTS FUNDS

COMBINING BALANCE SHEETSEPTEMBER 30, 2015

Right of WayAcquisition

Program Fund

ParkLand Dedication

Fund

DowntownLand

DedicationFund

DowntownInfrastructure

Fund

ASSETSCash and cash equivalents $ 1,651,332 $ 2,569,518 $ 4,348,399 $ 326,563Investments 678,658 1,056,010 1,787,088 133,016Receivables, net:

Assessments 129,352Interest 1,238 433 1,349 4,704

Total assets 2,331,228 3,625,961 6,136,836 593,635

DEFERRED OUTFLOWS OF RESOURCESTotal deferred outflows of resources

Total assets and deferred outflows of resources $ 2,331,228 $ 3,625,961 $ 6,136,836 $ 593,635

LIABILITIESTotal liabilities

DEFERRED INFLOWS OF RESOURCESTotal deferred inflows of resources

FUND BALANCESRestricted for:

Downtown $ 593,635Land dedication $ 3,625,961 $ 6,136,836Library

Committed to:Right of way acquisition $ 2,331,228

Total fund balances 2,331,228 3,625,961 6,136,836 593,635Total liabilities, deferred inflows of resourcesand fund balances $ 2,331,228 $ 3,625,961 $ 6,136,836 $ 593,635

126

LibraryImprovements

Fund

TotalNon-Major

Capital ProjectsFunds

$ 263,504 $ 9,159,316108,294 3,763,066

129,352298 8,022

372,096 13,059,756

$ 372,096 $ 13,059,756

$ 593,6359,762,797

$ 372,096 372,096

2,331,228

372,096 13,059,756

$ 372,096 $ 13,059,756

127

CITY OF BOCA RATON, FLORIDANON-MAJOR CAPITAL PROJECTS FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

Right of WayAcquisition

Program Fund

ParkLand Dedication

Fund

DowntownLand

DedicationFund

DowntownInfrastructure

Fund

REVENUESSpecial assessments $ 1,505,634Donations in lieu of land $ 286,560 $ 3,889,780Investment earnings (loss) $ 16,215 22,247 25,715 9,951

Total revenues 16,215 308,807 3,915,495 1,515,585

EXPENDITURESCapital outlay

Total expenditures

Excess (deficiency) of revenues over expenditures 16,215 308,807 3,915,495 1,515,585

OTHER FINANCING SOURCES (USES)Transfers out (1,416,500)

Total other financing sources (uses) (1,416,500)

Net change in fund balances 16,215 308,807 3,915,495 99,085

Fund balances - beginning 2,315,013 3,317,154 2,221,341 494,550

Fund balances - ending $ 2,331,228 $ 3,625,961 $ 6,136,836 $ 593,635

128

LibraryImprovements

Fund

TotalNon-Major

Capital ProjectFunds

$ 1,505,6344,176,340

$ 5,551 79,6795,551 5,761,653

180,521 180,521180,521 180,521

(174,970) 5,581,132

(1,416,500)(1,416,500)

(174,970) 4,164,632

547,066 8,895,124

$ 372,096 $ 13,059,756

129

CITY OF BOCA RATON, FLORIDARIGHT OF WAY ACQUISITION PROGRAM FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESInvestment earnings (loss) $ 15,000 $ 15,000 $ 16,215 $ 1,215

Total revenues 15,000 15,000 16,215 1,215

EXPENDITURESTotal expenditures

Net change in fund balance $ 15,000 $ 15,000 16,215 $ 1,215

Fund balance - beginning 2,315,013

Fund balance - ending $ 2,331,228

130

CITY OF BOCA RATON, FLORIDAPARK LAND DEDICATION FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESDonations in lieu of land $ 250,000 $ 250,000 $ 286,560 $ 36,560Investment earnings (loss) 5,000 5,000 22,247 17,247

Total revenues 255,000 255,000 308,807 53,807

EXPENDITURESTotal expenditures

Net change in fund balance $ 255,000 $ 255,000 308,807 $ 53,807

Fund balance - beginning 3,317,154

Fund balance - ending $ 3,625,961

131

CITY OF BOCA RATON, FLORIDADOWNTOWN LAND DEDICATION FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESDonations in lieu of land $ 3,889,780 $ 3,889,780Investment earnings (loss) $ 6,000 $ 6,000 25,715 19,715

Total revenues 6,000 6,000 3,915,495 3,909,495

EXPENDITURESTotal expenditures

Net change in fund balance $ 6,000 $ 6,000 3,915,495 $ 3,909,495

Fund balance - beginning 2,221,341

Fund balance - ending $ 6,136,836

132

CITY OF BOCA RATON, FLORIDADOWNTOWN INFRASTRUCTURE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESSpecial assessments $ 1,498,000 $ 1,498,000 $ 1,505,634 $ 7,634Investment earnings (loss) 5,000 5,000 9,951 4,951

Total revenues 1,503,000 1,503,000 1,515,585 12,585

OTHER FINANCING SOURCES (USES)Transfers out (1,416,500) (1,416,500) (1,416,500)

Total other financing sources (uses) (1,416,500) (1,416,500) (1,416,500)

Net change in fund balance $ 86,500 $ 86,500 99,085 $ 12,585

Fund balance - beginning 494,550

Fund balance - ending $ 593,635

133

CITY OF BOCA RATON, FLORIDALIBRARY IMPROVEMENTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive /(Negative)

REVENUESInvestment earnings (loss) $ 25,000 $ 25,000 $ 5,551 $ (19,449)

Total revenues 25,000 25,000 5,551 (19,449)

EXPENDITURESCapital outlay 327,400 180,521 146,879

Total expenditures 327,400 180,521 146,879

Net change in fund balance $ 25,000 $ (302,400) (174,970) $ 127,430

Fund balance - beginning 547,066

Fund balance - ending $ 372,096

134

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Non-Major Enterprise Funds Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The costs of providing goods or services to the general public are fi-nanced or recovered primarily through user charges. Cemetery Fund -- To account for the operation of the City's cemetery and mausoleum. Golf Course Fund -- To account for the operation of the City's golf courses. Stormwater Utility Fund -- To account for the provision of stormwater maintenance and capital im-provements to the residents of the City. Sanitation Fund -- To account for the provision of solid waste services and capital assets used to pro-vide the services to the residents of the City.

CITY OF BOCA RATON, FLORIDANON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITIONSEPTEMBER 30, 2015

CemeteryMausoleum

GolfCourse

StormwaterUtility Sanitation

TotalNon-MajorEnterprise

FundsASSETS

Current assets:Cash and cash equivalents $ 811,274 $ 269,850 $ 5,433,606 $ 4,657,380 $ 11,172,110Investments 333,458 109,883 2,243,424 1,918,841 4,605,606Interest receivable on investments 335 232 2,084 1,858 4,509Accounts receivable 25,486 212,330 1,242,249 1,480,065Due from other governmental units 99,670 99,670Inventories 60,365 60,365Other assets 1,348 1,348

Total current assets 1,230,918 480,983 7,891,444 7,820,328 17,423,673

Noncurrent assets:Net pension asset 8,854 68,866 32,465 120,760 230,945Capital assets:

Land 118,000 468,735 586,735Buildings 1,488,761 770,900 2,259,661Golf course improvements 3,660,473 3,660,473Cemetery lot improvements 477,867 477,867Stormwater utility improvements 16,729,384 16,729,384Equipment 151,650 1,308,925 1,276,267 6,350,727 9,087,569 Less accumulated depreciation (1,466,107) (3,108,175) (5,857,685) (3,322,080) (13,754,047)Total capital assets (net of accumulated depreciation) 770,171 3,100,858 12,147,966 3,028,647 19,047,642

Total noncurrent assets 779,025 3,169,724 12,180,431 3,149,407 19,278,587

Total assets 2,009,943 3,650,707 20,071,875 10,969,735 36,702,260

DEFERRED OUTFLOWS OF RESOURCESDeferred outflows for pensions 14,132 140,602 60,380 192,745 407,859

Total deferred outflows of resources 14,132 140,602 60,380 192,745 407,859

LIABILITIESCurrent liabilities:

Accounts payable and accrued liabilities 22,988 157,202 42,844 234,098 457,132Compensated absences 2,657 19,302 9,193 36,689 67,841Performance bonds and escrow funds 1,000 1,000Unearned revenue 17,995 17,995

Total current liabilities 25,645 195,499 52,037 270,787 543,968

Non-current liabilities:Compensated absences 23,910 173,717 82,738 330,203 610,568Net pension liability 212,472 59,295 271,767Net OPEB obligation 8,623 39,668 20,093 79,335 147,719

Total noncurrent liabilities 32,533 425,857 162,126 409,538 1,030,054Total liabilities 58,178 621,356 214,163 680,325 1,574,022

DEFERRED INFLOWS OF RESOURCESDeferred inflows for pensions 22,018 173,749 81,431 300,303 577,501

Total deferred inflows of resources 22,018 173,749 81,431 300,303 577,501Total liabilities and deferred inflows of resources 80,196 795,105 295,594 980,628 2,151,523

NET POSITIONNet investment in capital assets 770,171 3,100,858 12,147,966 3,028,647 19,047,642Unrestricted 1,173,708 (104,654) 7,688,695 7,153,205 15,910,954

Total net position $ 1,943,879 $ 2,996,204 $ 19,836,661 $ 10,181,852 $ 34,958,596

135

CITY OF BOCA RATON, FLORIDANON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

CemeteryMausoleum

GolfCourse

StormwaterUtility Sanitation

TotalNon-majorEnterprise

Funds

OPERATING REVENUESCharges for sales and services $ 240,378 $ 2,413,729 $ 2,352,983 $ 7,501,602 $ 12,508,692Other 80,125 80,125

Total operating revenues 240,378 2,493,854 2,352,983 7,501,602 12,588,817

OPERATING EXPENSESPersonal services 318,128 1,629,279 750,074 2,406,423 5,103,904Materials and supplies 20,176 315,772 1,598 22,684 360,230Other services and charges 204,292 672,955 835,956 3,109,464 4,822,667Depreciation of capital assets 66,855 107,979 664,673 644,691 1,484,198

Total operating expenses 609,451 2,725,985 2,252,301 6,183,262 11,770,999

Operating income (loss) (369,073) (232,131) 100,682 1,318,340 817,818

NONOPERATING REVENUES (EXPENSES)Investment earnings (loss) 6,858 4,175 48,034 36,786 95,853Gain (loss) on disposal of capital assets 10,220 35,339 45,559

Total nonoperating revenues (expenses) 6,858 4,175 58,254 72,125 141,412

Income (loss) before transfers and contributions (362,215) (227,956) 158,936 1,390,465 959,230

Transfers in 521,500 521,500Transfers out (15,400) (9,600) (25,000)Capital contributions 203,952 203,952

Change in net position 159,285 (39,404) 158,936 1,380,865 1,659,682

Net position, beginning 1,798,380 3,294,833 19,776,028 8,938,101 33,807,342Prior period adjustment (13,786) (259,225) (98,303) (137,114) (508,428)

Net position, beginning as restated 1,784,594 3,035,608 19,677,725 8,800,987 33,298,914

Net position, ending $ 1,943,879 $ 2,996,204 $ 19,836,661 $ 10,181,852 $ 34,958,596

136

Cemetery/Mausoleum Golf Course

Stormwater Utility Sanitation

Total Non-Major Enterprise

Funds

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 221,565 $ 2,504,585 $ 2,364,117 $ 7,543,525 $ 12,633,792 Payments to suppliers (225,082) (973,323) (992,752) (3,280,131) (5,471,288) Payments to employees (329,332) (1,724,624) (798,298) (2,536,031) (5,388,285) Net cash provided by (used in) operating activities (332,849) (193,362) 573,067 1,727,363 1,774,219

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 521,500 - - - 521,500 Transfers out - (15,400) - (9,600) (25,000) Net cash provided by (used in) noncapital financing activities 521,500 (15,400) - (9,600) 496,500

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development charges - 203,952 - - 203,952 Acquisition of capital assets (10,294) (39,424) 6,954 (93,471) (136,235) Proceeds from sale of capital assets - - 10,220 35,339 45,559 Net cash provided by (used in) capital and related financing activities (10,294) 164,528 17,174 (58,132) 113,276

CASH FLOWS FROM INVESTING ACTIVITIES Interest received 7,105 4,394 50,252 37,889 99,640 Sale of investments 511,478 222,898 3,780,653 2,601,069 7,116,098 Purchase of investments (333,458) (109,883) (2,243,424) (1,918,841) (4,605,606) Net cash provided by (used in) investing activities 185,125 117,409 1,587,481 720,117 2,610,132

Net increase in cash and cash equivalents 363,482 73,175 2,177,722 2,379,748 4,994,127 Cash and cash equivalents Beginning of year 447,792 196,675 3,255,884 2,277,632 6,177,983

End of year $ 811,274 $ 269,850 $ 5,433,606 $ 4,657,380 $ 11,172,110

CITY OF BOCA RATON, FLORIDANON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

(Continued)

137

Cemetery/Mausoleum Golf Course

Stormwater Utility Sanitation

Total Non-Major Enterprise

Funds

CITY OF BOCA RATON, FLORIDANON-MAJOR ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS (continued)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating income (loss) $ (369,073) $ (232,131) $ 100,682 $ 1,318,340 $ 817,818 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 66,855 107,979 664,673 644,691 1,484,198

Change in assets, liabilities, deferred outflows & deferred inflows (Increase) decrease in accounts receivable (18,813) - 11,134 41,923 34,244 (Increase) decrease in due from other governmental units - 6,328 - - 6,328 (Increase) decrease in inventories (1,367) - - - (1,367) (Increase) decrease in other assets - 1,211 - - 1,211 (Increase) decrease in net pension asset (8,854) (68,866) (32,465) (120,760) (230,945) (Increase) decrease in deferred pension outflows 838 (1,829) (13,018) (43,852) (57,861) Increase (decrease) in accounts payable and accrued liabilities 222 11,922 (159,125) (142,073) (289,054) Increase (decrease) in compensated absences 3,514 (13,213) 4,802 9,576 4,679 Increase (decrease) in OPEB obligations 567 2,611 1,323 5,222 9,723 Increase (decrease) in unearned revenue - 4,403 - - 4,403 Increase (decrease) in net pension liability (28,756) (185,526) (86,370) (286,007) (586,659) Increase (decrease) in deferred pension inflows 22,018 173,749 81,431 300,303 577,501 Total adjustments 36,224 38,769 472,385 409,023 956,401

Net cash provided by (used in) operating activities $ (332,849) $ (193,362) $ 573,067 $ 1,727,363 $ 1,774,219

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Unrealized gain on investments $ 1,510 $ 656 $ 11,146 $ 7,689 $ 21,001

138

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Internal Service Funds Internal Service Funds -- are used to account for the financing of goods or services provided by one de-partment to other departments of the government on a cost reimbursement basis. Fleet Management -- To account for the cost of operating a maintenance facility for automotive equipment used by other City departments, and administering the City fleet. Information Technology -- To account for the cost of operating a computer facility used by other City departments. Self-Insurance Programs -- To account for the cost of providing health and workers’ compensation insurance coverage to all City employees, and the City's general liability self-insurance program. Retirement Sustainablility Fund -- provides a separate funding for certain receipts and expenditures for all of the City’s defined benefit plans and accounts for reserves to reduce the financial burden, if any, of retiree defined benefit plan payments on future taxpayers.

CITY OF BOCA RATON, FLORIDAINTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITIONSEPTEMBER 30, 2015

FleetManagement

Fund

InformationTechnology

Fund

Self-InsurancePrograms

Fund

RetirementSustainability

Fund

TotalInternalServiceFunds

ASSETSCurrent assets:

Cash and cash equivalents $ 13,633,768 $ 4,243,063 $ 17,449,573 $ 11,274,154 $ 46,600,558Investments 5,597,468 1,739,435 7,112,501 4,633,406 19,082,810Interest receivable on investments 5,075 1,362 6,857 5,305 18,599Accounts receivable 183,125 183,125Due from other governmental units 300 300Inventories 517,853 517,853Other assets 243,989 243,989

Total current assets 19,754,164 5,984,160 24,996,045 15,912,865 66,647,234

Net pension asset 48,206 119,531 14,265 182,002

Capital Assets:Buildings 1,313,785 1,313,785Equipment 19,125,239 2,787,128 21,912,367Construction in progress 24,149 24,149

20,439,024 2,811,277 23,250,301

Less accumulated depreciation (13,693,282) (1,740,524) (15,433,806)Intangible assets 63,869 1,017,350 1,081,219 Less accumulated amortization (63,869) (945,989) (1,009,858)

Total capital assets (net of accumulated depreciation/amortization) 6,745,742 1,142,114 7,887,856Total assets 26,548,112 7,245,805 25,010,310 15,912,865 74,717,092

DEFERRED OUTFLOWS OF RESOURCESDeferred outflows for pensions 76,941 280,698 22,768 380,407

Total deferred outflows of resources 76,941 280,698 22,768 380,407

LIABILITIESCurrent liabilities:

Accounts payable and accrued liabilities 379,243 696,276 1,262,986 2,338,505Compensated absences 11,072 34,532 5,507 51,111Estimated liability for self-insurance losses 2,575,000 2,575,000Unearned revenue 10,696 10,696

Total current liabilities 390,315 730,808 3,854,189 4,975,312

Non-current liabilities:Compensated absences 99,644 310,793 49,564 460,001Net pension liability 622,593 622,593Net OPEB obligation 22,421 60,364 9,141 91,926Estimated liability for self-insurance losses 6,521,000 6,521,000

Total noncurrent liabilities 122,065 993,750 6,579,705 7,695,520Total liabilities 512,380 1,724,558 10,433,894 12,670,832

DEFERRED INFLOWS OF RESOURCESDeferred inflows for pensions 119,877 304,560 35,473 459,910

Total deferred inflows of resources 119,877 304,560 35,473 459,910Total liabilities and deferred inflows of resources 632,257 2,029,118 10,469,367 13,130,742

NET POSITIONNet investment in capital assets 6,745,742 1,142,114 7,887,856Unrestricted 19,247,054 4,355,271 14,563,711 15,912,865 54,078,901

Total net position $ 25,992,796 $ 5,497,385 $ 14,563,711 $ 15,912,865 $ 61,966,757

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CITY OF BOCA RATON, FLORIDAINTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

FleetManagement

Fund

InformationTechnology

Fund

Self-InsurancePrograms

Fund

RetirementSustainability

Fund

TotalInternalServiceFunds

OPERATING REVENUESFleet management $ 3,624,797 $ 3,624,797Management information processing $ 5,463,237 5,463,237Insurance premiums $ 15,436,586 15,436,586Insurance premium tax $ 3,198,125 3,198,125Retirement sustainability 776,300 776,300

Total operating revenues 3,624,797 5,463,237 15,436,586 3,974,425 28,499,045

OPERATING EXPENSESPersonal services 786,319 3,307,470 409,221 4,503,010Materials and supplies 49,070 1,635,054 3,943 1,688,067Other services and charges 202,304 1,761,795 4,810,123 6,774,222Insurance claims 9,746,271 9,746,271Pension benefits 3,198,125 3,198,125Depreciation of capital assets 2,002,485 286,073 2,288,558

Total operating expenses 3,040,178 6,990,392 14,969,558 3,198,125 28,198,253

Operating income (loss) 584,619 (1,527,155) 467,028 776,300 300,792

NONOPERATING REVENUES (EXPENSES)Investment earnings (loss) 116,477 31,848 154,256 102,924 405,505Gain (loss) on disposal of capital assets 40,433 11,571 52,004

Total nonoperating revenues (expenses) 156,910 43,419 154,256 102,924 457,509Income (loss) before transfers andcontributions 741,529 (1,483,736) 621,284 879,224 758,301

Transfers in 1,578,200 2,212,400 3,790,600Transfers out (2,500) (2,500)

Change in net position 2,319,729 728,664 618,784 879,224 4,546,401

Net position, beginning as originally stated 23,736,217 5,374,027 13,964,904 15,033,641 58,108,789Prior period adjustment (63,150) (605,306) (19,977) (688,433)

Net position, beginning as restated 23,673,067 4,768,721 13,944,927 15,033,641 57,420,356

Net position, ending $ 25,992,796 $ 5,497,385 $ 14,563,711 $ 15,912,865 $ 61,966,757

140

Fleet Management

Fund

Information Technology

Fund

Self-Insurance Programs

Fund

Retirement Sustainability

Fund

Total Internal Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 3,624,797 $ 5,463,237 $ 15,401,087 $ 3,974,425 $ 28,463,546 Payments to suppliers (39,454) (3,022,782) (4,411,336) (3,198,125) (10,671,697) Payments to employees (839,578) (3,327,433) (422,638) - (4,589,649) Claims paid - - (9,138,271) - (9,138,271) Net cash provided by (used in) operating activities 2,745,765 (886,978) 1,428,842 776,300 4,063,929

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 1,578,200 2,212,400 - - 3,790,600 Transfers out - - (2,500) - (2,500) Net cash provided by (used in) noncapital financing activities 1,578,200 2,212,400 (2,500) - 3,788,100

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (1,674,981) (48,765) - - (1,723,746) Proceeds from sale of capital assets 40,433 11,571 - - 52,004 Net cash provided by (used in) capital and related financing activities (1,634,548) (37,194) - - (1,671,742)

CASH FLOWS FROM INVESTING ACTIVITIES Interest received 121,355 33,315 161,162 106,744 422,576 Sale of investments 8,765,012 2,484,904 12,090,064 8,016,332 31,356,312 Purchase of investments (5,597,468) (1,739,435) (7,112,501) (4,633,406) (19,082,810) Net cash provided by (used in) investing activities 3,288,899 778,784 5,138,725 3,489,670 12,696,078

Net increase in cash and cash equivalents 5,978,316 2,067,012 6,565,067 4,265,970 18,876,365 Cash and cash equivalents Beginning of year 7,655,452 2,176,051 10,884,506 7,008,184 27,724,193

End of year $ 13,633,768 $ 4,243,063 $ 17,449,573 $ 11,274,154 $ 46,600,558

CITY OF BOCA RATON, FLORIDAINTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

(Continued)

141

Fleet Management

Fund

Information Technology

Fund

Self-Insurance Programs

Fund

Retirement Sustainability

Fund

Total Internal Service Funds

CITY OF BOCA RATON, FLORIDAINTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS (continued)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating income (loss) $ 584,619 $ (1,527,155) $ 467,028 $ 776,300 $ 300,792 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 2,002,485 286,073 - - 2,288,558

Change in assets, liabilities, deferred outflows & deferred inflows (Increase) decrease in accounts receivable - - (46,195) - (46,195) (Increase) decrease in inventories 76,953 - - - 76,953 (Increase) decrease in other assets - - (243,989) - (243,989) (Increase) decrease in net pension asset (48,206) (119,531) (14,265) - (182,002) (Increase) decrease in deferred pension outflows (8,366) (27,134) (1,075) - (36,575) Increase (decrease) in accounts payable and accrued liabilities 143,221 402,328 647,402 - 1,192,951 Increase (decrease) in compensated absences 5,431 18,129 5,224 - 28,784 Increase (decrease) in OPEB obligations 1,476 12,029 2,213 - 15,718 Increase (decrease) in estimated liability for self-insurance losses - - 608,000 - 608,000 Increase (decrease) in unearned revenue - - 10,696 - 10,696 Increase (decrease) in unavailable revenue - - - - - Increase (decrease) in net pension liability (131,725) (236,277) (41,670) - (409,672) Increase (decrease) in deferred pension inflows 119,877 304,560 35,473 - 459,910 Total adjustments 2,161,146 640,177 961,814 - 3,763,137

Net cash provided by (used in) operating activities $ 2,745,765 $ (886,978) $ 1,428,842 $ 776,300 $ 4,063,929

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Unrealized gain on investments $ 25,864 $ 7,341 $ 35,642 $ 23,628 $ 92,475

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Fiduciary Funds Fiduciary Funds account for financial operations and condition of the City’s three pension plans. General Employees' Pension Plan, Police and Firefighters' Retirement System and Executive Employ-ees’ Retirement Plan -- To account for the accumulation of resources to be used for the retirement benefit payments to the City's employees. Resources are contributed by employees at rates fixed by law and by the City at amounts determined by an annual actuarial valuation.

CITY OF BOCA RATON, FLORIDAPENSION TRUST FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITIONSEPTEMBER 30, 2015

Police andFirefighters'Retirement

System

GeneralEmployees'

PensionPlan

ExecutiveEmployees'Retirement

Plan

TotalPension

TrustFunds

ASSETSCash and cash equivalents $ 5,181,635 $ 7,842,053 $ 259,495 $ 13,283,183Investments:

Corporate bonds and debentures 26,442,931 45,142,932 71,585,863U.S. government securities 25,394,834 13,186,724 38,581,558Common and preferred stock 167,756,727 75,340,000 243,096,727Real estate 29,492,490 19,043,048 48,535,538Mutual funds 62,425,789 33,591,580 96,017,369Florida Municipal Pension Trust Fund 32,177,339 32,177,339

Total investments 311,512,771 186,304,284 32,177,339 529,994,394Receivables:

Interest and dividends 423,461 742,897 1,166,358Unsettled trades receivable 570,881 621,236 1,192,117Accounts receivable 85,219 85,219

Total receivables 994,342 1,364,133 85,219 2,443,694

Other assets 4,516 4,516Prepaid expenses 38,479 18,533 57,012

Total assets 317,727,227 195,533,519 32,522,053 545,782,799

DEFERRED OUTFLOWS OF RESOURCESTotal deferred outflows of resources

LIABILITIESAccounts payable and accrued liabilities 330,746 169,857 500,603Unsettled trades payable 1,140,773 521,476 1,662,249

Total liabilities 1,471,519 691,333 2,162,852

DEFERRED INFLOWS OF RESOURCESAdvance contributions 1,908,242 1,908,242

Total deferred inflows of resources 1,908,242 1,908,242

NET POSITION RESTRICTED FOR PENSIONS $ 314,347,466 $ 194,842,186 $ 32,522,053 $ 541,711,705

143

CITY OF BOCA RATON, FLORIDAPENSION TRUST FUNDS

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

Police andFirefighters'Retirement

System

GeneralEmployees'

PensionPlan

ExecutiveEmployees'Retirement

Plan

TotalPension

TrustFunds

ADDITIONSContributions:

City $ 9,444,487 $ 3,925,569 $ 1,457,248 $ 14,827,304State 3,198,125 3,198,125Employee 3,160,776 2,335,348 635,026 6,131,150Transfer from other pension trust funds 54,539 21,680 76,219

Total contributions 15,803,388 6,315,456 2,113,954 24,232,798Investment income:

Interest revenue 1,811,160 2,025,180 125,235 3,961,575Dividends 4,733,538 2,594,265 7,327,803Net appreciation (depreciation)in fair value of investments (2,939,804) (5,894,811) (8,834,615)Other investment income 749 2,533 3,282Investment expense (1,431,929) (857,728) (39,893) (2,329,550)

Total investment income 2,173,714 (2,130,561) 85,342 128,495Total additions 17,977,102 4,184,895 2,199,296 24,361,293

DEDUCTIONSBenefits paid:

Retirement 12,122,542 8,469,052 1,121,448 21,713,042Disability 969,863 88,960 1,058,823Death 710,386 938,435 1,648,821Deferred retirement option plan 1,538,954 2,705,026 4,243,980

Termination refunds 82,471 249,703 238,878 571,052Administrative expenses 222,132 90,032 27,327 339,491Transfer to other pension trust funds 54,539 21,680 76,219

Total deductions 15,700,887 12,562,888 1,387,653 29,651,428

Net increase/(decrease) in net position 2,276,215 (8,377,993) 811,643 (5,290,135)

NET POSITION RESTRICTED FOR PENSIONBeginning of year 312,071,251 203,220,179 31,710,410 547,001,840End of year $ 314,347,466 $ 194,842,186 $ 32,522,053 $ 541,711,705

144

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STATISTICAL SECTION This part of the City of Boca Raton comprehensive annual financial report represents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial position.

Contents Page Financial Trends

145

The information presented in this section is intended to assist users in understanding and assessing how a government’s financial position has changed over time.

Revenue Capacity

153

This section is intended to assist users in understanding and assessing the factors affecting a government’s ability to generate it own-source revenue.

Debt Capacity

158

The information presented in this section is intended to assist users in understanding and assessing a government’s debt burden and its ability to issue additional debt.

Demographic and Economic Information

166

This section is intended (1) to assist users in understanding the socioeconomic environment within which a government operates and (2) to provide information that facilitates comparisons of financial statement information over time and among governments.

Operating Information

169

This section is intended to provide contextual information about a government’s operations and resources to assist readers in using financial statement information to understand and assess a government’s economic condition.

PAGE INTENTIONALLY LEFT BLANK

The  information presented  in  this  section  is  intended  to assist users  in understanding and assessing how a government’s  financial position has changed over time. 

FINANCIAL TREND INFORMATION 

CITY OF BOCA RATON, FLORIDA NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS

(accrual basis of accounting) (amounts expressed in thousands)

(Unaudited)

2006 2007 2008 2009 Governmental activities Net investment in capital assets $ 326,164 $ 338,203 $ 346,985 $ 352,077 Restricted 63,453 61,593 67,502 53,133 Unrestricted 57,236 71,151 74,446 87,842 Total governmental activities net position $ 446,853 $ 470,947 $ 488,933 $ 493,052 Business-type activities Net investment in capital assets $ 213,390 $ 215,571 $ 208,208 $ 210,989 Restricted 42,145 42,792 48,930 49,295 Unrestricted 16,510 19,123 22,775 35,935 Total business-type activities net position $ 272,045 $ 277,486 $ 279,913 $ 296,219 Primary government Net investment in capital assets $ 539,554 $ 553,774 $ 555,193 $ 563,066 Restricted 105,598 104,385 116,432 102,428 Unrestricted (1) 73,746 90,274 97,221 123,777 Total primary government net position $ 718,898 $ 748,433 $ 768,846 $ 789,271

(1) Fiscal year 2011 unrestricted balances have been restated due to the Implementation of GASB 63 and 65.

145

2010 2011 2012 2013 2014 2015

$ 361,158 $ 369,052 $ 370,985 $ 368,548 $ 365,123 $ 343,424 46,129 43,754 45,031 45,621 54,793 64,313 85,292 85,239 87,241 94,762 99,030 40,029

$ 492,579 $ 498,045 $ 503,257 $ 508,931 $ 518,946 $ 447,766

$ 208,818 $ 210,890 $ 207,936 $ 214,698 $ 224,767 $ 221,972 53,378 48,500 51,835 60,744 66,786 68,015 45,058 53,501 65,329 61,970 53,581 72,957

$ 307,254 $ 312,891 $ 325,100 $ 337,412 $ 345,134 $ 362,944

$ 569,976 $ 579,942 $ 578,921 $ 583,246 $ 589,890 $ 565,396 99,507 92,254 96,866 106,365 121,579 132,328

130,350 138,740 152,570 156,732 152,611 112,986 $ 799,833 $ 810,936 $ 828,357 $ 846,343 $ 864,080 $ 810,710

146

CITY OF BOCA RATON, FLORIDACHANGES IN NET POSITIONLAST TEN FISCAL YEARS

(accrual basis of accounting)

(amounts expressed in thousands) (Unaudited)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expenses

Governmental activities: General government $ 41,508 $ 18,484 $ 18,999 $ 19,099 $ 23,023 $ 17,696 $ 18,808 $ 18,891 $ 19,017 $ 20,655 Law enforcement 29,487 32,122 36,406 37,225 37,585 39,979 40,865 42,044 43,913 40,575 Fire rescue 28,390 32,792 34,955 36,104 37,856 39,140 42,227 43,626 44,831 42,631 Physical environment 3,728 9,052 10,238 4,252 7,851 4,237 4,105 4,255 4,055 4,217 Transportation 24,905 18,441 18,817 18,650 22,196 18,536 17,925 20,185 19,166 17,744Community development 1,363 1,499 2,408 2,115 4,168 6,040 3,106 2,889 2,804 3,257 Parks and recreation 35,652 35,818 36,203 37,772 34,928 28,979 39,039 37,542 37,507 37,107 Interest and fiscal charges 5,389 5,921 5,554 5,148 4,834 4,793 2,971 3,807 4,114 2,165

Total governmental activities expenses 170,422 154,129 163,580 160,365 172,441 159,400 169,046 173,239 175,407 168,351 Business-type activities:

Water and sewer 41,167 43,495 45,537 46,630 42,970 44,132 43,662 45,617 45,393 48,616 Cemetery 730 655 593 653 635 659 589 569 623 610 Golf course 2,745 2,798 2,992 3,098 3,075 3,073 2,690 2,776 2,787 2,726 Stormwater utility 1,113 1,216 1,428 1,736 1,646 2,023 2,545 2,169 2,428 2,252 Sanitation 5,923 5,851 6,511 6,593 6,727 6,758 6,183

Total business-type activities expenses 45,755 48,164 50,550 58,040 54,177 56,398 56,079 57,858 57,989 60,387Total primary government expenses $ 216,177 $ 202,293 $ 214,130 $ 218,405 $ 226,618 $ 215,798 $ 225,125 $ 231,097 $ 233,396 $ 228,738

Program Revenues Governmental activities:

Charges for services: General government $ 19,745 $ 21,543 $ 19,796 $ 17,046 $ 16,455 $ 17,565 $ 21,615 $ 25,301 $ 25,881 $ 32,294 Law enforcement 3,055 2,699 3,269 2,973 2,669 2,647 3,251 3,286 3,187 2,484 Fire rescue 3,093 5,229 5,821 6,782 7,251 8,876 11,738 12,968 12,517 10,605 Physical environment 240 219 209 149 198 214 214 245 143 137 Community development 397 1,577 1,605 1,697 1,585 1,695 1,898 2,020 2,324 1,959 Parks and recreation 18,058 16,503 16,216 17,231 20,027 19,631 20,662 19,313 19,125 19,213

Operating grants and contributions 26,626 3,296 8,386 4,777 13,916 5,317 5,238 4,482 6,262 4,494 Capital grants and contributions 2,205 5,406 2,169 2,980 3,326 2,720 3,503 2,971 1,159 5,295

Total governmental activities program revenues 73,419 56,472 57,471 53,635 65,427 58,665 68,119 70,586 70,598 76,481 Business-type activities:

Charges for services: Water and sewer 39,847 39,063 41,098 49,967 47,278 48,288 49,239 48,452 51,071 54,934 Cemetery 205 181 238 159 188 179 144 210 244 236 Golf course 2,670 2,872 2,824 2,687 2,120 2,272 2,444 2,485 2,440 2,490 Stormwater utility 2,105 2,070 2,118 2,137 2,155 2,175 2,239 2,236 2,292 2,353 Sanitation 1,722 3,932 6,423 7,179 7,376 7,487 7,502

Capital grants and contribution 7,716 5,016 3,491 3,080 5,401 1,260 9,272 9,025 867 11,473 Total business-type activities program revenues 52,543 49,202 49,769 59,752 61,074 60,597 70,517 69,784 64,401 78,988 Total primary government program revenues $ 125,962 $ 105,674 $ 107,240 $ 113,387 $ 126,501 $ 119,262 $ 138,636 $ 140,370 $ 134,999 $ 155,469

(1) Fiscal year 2011 expenses have been restated due to the implementation of GASB 63 and 65.

147

CITY OF BOCA RATON, FLORIDACHANGES IN NET POSITION

LAST TEN FISCAL YEARS

(accrual basis of accounting) (amounts expressed in thousands)

(Unaudited)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Net (Expenses) Revenue

Governmental activities $ (97,003) $ (97,657) $ (106,109) $ (106,730) $ (107,014) $ (100,927) $ (100,927)

$ (102,653) $ (104,809) $ (91,870)Business-type activities 6,788 1,038 (781) 1,711 6,897 4,199 10,936 11,926 6,412 18,601

Total primary government net expense $ (90,215) $ (96,619) $ (106,890) $ (105,019) $ (100,117) $ (96,728) $ (89,991)

$ (90,727) $ (98,397) $ (73,269)

General revenues and Other Changes in Net Position

Governmental activities: Taxes:

Property tax $ 59,460 $ 68,744 $ 65,155 $ 61,764 $ 57,635 $ 54,246 $ 55,914 $ 59,568 $ 61,938 $ 65,238 Utility tax 20,504 20,247 22,151 20,615 20,639 20,171 20,714 20,502 21,390 21,361 Franchise tax 13,136 13,295 13,804 13,881 12,406 12,482 12,137 11,977 12,867 12,893 Sales tax 6,695 6,284 5,906 5,224 5,262 5,430 5,533 5,854 6,287 6,687 Gas tax 2,897 2,808 2,074 1,977 1,959 1,908 1,966 1,958 1,999 2,120 Incremental property tax 6,147 6,771 6,309 6,751 6,659 8,948 6,484 6,575 6,730 7,183

State shared revenues unrestricted 1,849 1,830 2,317 2,094 2,067 2,185 2,242 2,280 2,418 2,549 Investment earnings unrestricted 6,620 8,840 6,707 4,924 2,686 1,378 1,396 (186) 1,344 1,279 Gain (loss) on disposal of capital assets 6,771 - 18 73 131 120 156 112 49 Miscellaneous 110 419 15 188 12 42 43 88 137 188 Transfers 107 (1,016) (361) (10,158) (2,784) (720) (410) (445) (397) (338)

Total governmental activities 124,296 128,222 124,095 107,333 106,541 106,201 106,139

108,327 114,825 119,209

Business-type activities: Investment earnings 2,076 3,361 2,808 2,495 1,702 624 765 (288) 901 847 Gain (loss) on disposal of capital assets 14 26 39 25 (348) 94 98 229 11 50 Miscellaneous 19 Transfers (107) 1,016 361 10,158 2,784 720 410 445 397 338

Total business-type activities 1,983 4,403 3,208 12,678 4,138 1,438 1,273 386 1,309 1,254

Total primary government $ 126,279 $ 132,625 $ 127,303 $ 120,011 $ 110,679 $ 107,639 $ 107,412

$ 108,713 $ 116,134 $ 120,463

Change in net position: Governmental activities $ 27,293 $ 30,565 $ 17,986 $ 603 $ (473) $ 5,274 $ 5,212 $ 5,674 $ 10,016 $ 27,339

Business-type activities 8,771 5,441 2,427 14,389 11,035 5,637 12,209 12,312 7,721 19,855 Total primary government $ 36,064 $ 36,006 $ 20,413 $ 14,992 $ 10,562 $ 10,911 $ 17,421 $ 17,986 $ 17,737 $ 47,194

148

CITY OF BOCA RATON, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS

(modified accrual basis of accounting) (amounts expressed in thousands)

(Unaudited)

  2006 2007 2008 2009    

General Fund:    

Non-spendable:     Inventories $ 36 $ 29 $ 15 $ 28 Restricted for:    

Army Corp of Engineers    

Committed to:     Hurricane/ disaster emergency 5,200 5,200 10,600 10,600 Mizner Park debt service 1,633 1,633 1,633 1,633 Retirement system reserve    

Assigned to:     Subsequent year's budget 3,936 11,768 3,954 7,500 Unassigned 27,117 32,010 34,462 26,032    Total general fund $ 37,922 $ 50,640 $ 50,664 $ 49,034    

   

All Other Governmental Funds:    

Non-spendable:     Perpetual care, cemetery $ 2,212 $ 2,230 $ 2,249 $ 2,199 Perpetual care, mausoleum 3,965 3,858 3,791 3,618 Restricted for:     Debt service 8,930 9,409 9,752 9,984 Housing 2,707 2,085 1,015 770 Law enforcement 1,604 1,567 1,703 1,405 Transportation 5,535 6,046 6,229 6,458 Right of way beautification 3,795 4,297 3,741 3,137 Economic development     Downtown 3,395 4,910 5,067 7,367 Land dedication 3,315 4,141 4,859 4,685 Library 5,457 5,581 8,262 1,107 Committed to:     Parking 3 3 3 3 Right of way acquisition 1,854 1,913 1,989 2,228 Assigned to:    

Special revenue funds 501 501 Capital projects 19,457 17,607 24,165 28,728 Environmentally sensitive lands 1,452 1,262 1,225 1,040       Total all other governmental funds $ 64,182 $ 65,410 $ 74,050 $ 72,729    

Note: The City implemented GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions" in fiscal year 2009. Fiscal years 2004-2008 amounts have been restated to conform to the new statement requirements.

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2010 2011 2012 2013 2014 2015                                  $ 19 $ 13 $ 25 $ 23 $ 25 $ 22                170    170 170 170 170 170             10,600 10,600 10,600 10,600 10,600 10,600 1,633 1,633 1,633 1,633 1,633 1,633   8,500 10,500 12,000 12,000              1,286 1,316 1,758 12,920 3,762 2,536 24,717 22,340 25,653 21,300 29,138 44,075            

$ 46,925 $ 46,572 $ 51,839 $ 58,646 $ 45,328 $ 59,036            

                                 

$ 2,123 $ 1,950 $ 1,777 $ 1,630 $ 1,505 $ 1,385 3,614 3,487 3,253 2,994 2,776 2,611             10,229 10,532 10,995 6,191 11,489 11,830 326 158 175 202 150 532 1,331 1,292 1,140 1,084 766 1,211 7,152 7,486 7,971 13,363 8,947 9,981 2,456 1,293 318 271 1,814 2,117            6,487   4,788  8,354 3,644 2,386 2,181 2,941 6,850 1,148 1,646 3,453 5,243 5,538 9,763 10,633 10,437 8,103 550 547 372             3 3 3 826 3 3 2,265 2,284 2,301 2,297 2,315 2,331                        25,223 24,603 24,248 23,021 26,031 29,571 1,056 1,067 1,034 1,032 -   ‐            

$ 75,913 $ 69,882 $ 67,157 $ 60,885 $ 71,309 $ 83,345            

 

150

CITY OF BOCA RATON, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS

(modified accrual basis of accounting)(Unaudited)

2006 2007 2008 2009 Revenues: Taxes $ 103,838,860 $ 114,446,690 $ 111,293,350 $ 109,395,926 Licenses and permits 10,872,277 14,159,352 12,655,903 9,330,151 Intergovernmental 50,222,463 24,443,570 29,335,294 24,916,278 Charges of services 13,960,886 15,142,687 15,394,414 17,534,451 Fines and forfeitures 1,893,415 1,392,731 1,732,861 1,650,942 Special assessments 1,177,372 1,296,839 1,179,630 1,194,209 Donations in lieu of land 1,511,961 5,085,724 1,357,337 1,123,280 Investment earnings 5,655,785 7,411,536 5,608,957 4,090,555 Miscellaneous 416,326 567,831 76,883 262,809 Total revenues 189,549,345 183,946,960 178,634,629 169,498,601 Expenditures: Current: General government 40,773,094 18,156,740 20,805,598 21,062,541 Law enforcement 31,491,852 30,693,003 32,981,888 34,031,382 Fire rescue 27,453,323 31,811,220 31,021,882 32,911,346 Physical environment 8,419,532 9,060,845 9,908,431 4,578,883 Transportation 7,915,676 6,876,907 7,210,515 8,146,766 Community development 1,767,880 1,680,177 2,794,881 1,633,645 Parks and recreation 32,386,018 32,871,842 32,051,636 34,553,264 Capital outlay 19,590,262 21,759,723 16,121,088 9,785,389 Debt service: Principal 12,005,000 10,685,000 10,890,000 10,305,000 Interest 5,219,097 4,766,913 4,351,174 3,906,558 Bond issuance costs 190,104 Bond repayment Total expenditures 187,021,734 168,362,370 168,137,093 161,104,878 Excess (deficiency) of revenues Over expenditures 2,527,611 15,584,590 10,497,536 8,393,723 Other financing sources (uses): Transfers in 15,691,643 19,214,060 26,797,253 22,680,306 Transfers out (16,173,743) (22,463,860) (27,630,753) (35,223,718) Refunding and new bonds issued 11,205,000 Discount on bonds issued (11,011,294) Payment to refunded bond escrow agent Proceeds from sale of land 2,568,638 Premium on bonds issued 6,460 Total other financing sources (uses) 2,086,538 (3,249,800) (833,500) (12,343,246) Net change in fund balances $ 4,614,149 $ 12,334,790 $ 9,664,036 $ (3,949,523)     

Debt service as a percentage of Noncapital expenditures 10.65% 10.40% 9.95% 9.34% 

151

  

2010 2011 2012 2013 2014 2015

$ 102,372,638 $ 100,712,574 $ 99,484,015 $ 103,840,677 $ 104,972,742 $ 108,754,619 9,014,360 8,697,459 11,199,032 12,661,480 13,716,396 18,199,802 38,094,892 29,622,567 30,209,165 27,232,751 29,205,706 28,204,044 18,155,376 21,624,838 25,385,962 28,501,248 28,566,477 30,545,193 1,257,433 1,360,028 2,642,876 2,973,556 2,332,373 2,203,618 1,170,054 1,199,953 1,172,570 1,493,004 1,483,647 1,505,634 1,906,044 686,867 2,182,150 2,442,421 724,303 4,642,068 2,238,874 1,078,045 1,125,971 (101,337) 999,229 872,975 120,427 89,006 108,915 205,082 223,098 220,838 174,330,098 165,071,337 173,510,656 179,248,882 182,223,971 195,148,791 20,337,965 19,647,100 20,073,899 20,917,289 18,176,334 19,701,982 36,031,487 36,508,850 37,824,269 39,515,182 40,453,294 39,650,656 33,982,309 34,849,430 37,539,229 39,809,307 41,333,442 40,739,785 7,828,961 4,203,550 4,185,053 4,281,679 4,038,442 4,220,664 6,324,672 7,554,534 7,098,294 6,725,749 6,354,401 7,536,209 5,262,747 5,907,758 2,983,234 3,025,793 3,153,304 3,942,306 34,951,245 35,635,867 36,019,775 34,993,019 34,587,799 35,757,011 22,157,964 8,835,059 8,903,781 13,287,857 5,460,607 928,156 10,790,000 11,075,000 11,150,000 11,015,000 11,600,000 7,722,363 3,370,058 3,405,937 2,731,354 2,460,400 1,834,035 5,081,592 331,167 313,238 - 45,146 12,507,993 181,368,575 167,623,085 168,822,126 176,031,275 179,544,797 165,280,724 (7,038,477) (2,551,748) 4,688,530 3,217,607 2,679,174 29,868,067 14,550,700 9,738,400 9,568,100 10,457,500 17,292,828 9,617,600 (19,919,800) (13,571,100) (12,052,300) (13,140,800) (35,425,628) (13,741,700) 12,930,000 15,585,000 - 12,560,000 (21,074) (17,259,729) - - - 572,248 2,013,311 - - - 8,112,074 (3,832,700) (2,145,618) (2,683,300) (5,572,800) (4,124,100)

$ 1,073,597 $ (6,384,448) $ 2,542,912 $ 534,307 $ (2,893,626) $ 25,743,967

8.55% 9.53% 8.57% 8.10% 7.55% 7.78%

152

PAGE INTENTIONALLY LEFT BLANK

This section is intended to assist users in understanding and assessing the factors affecting a government’s ability to generate it own-source revenue.

REVENUE CAPACITY INFORMATION

CITY OF BOCA RATON, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (1)

LAST TEN FISCAL YEARS (Unaudited)

 

Fiscal

Year (2) Real Property (1) Personal Property Total Assessed

Value Less: Tax-

Exempt Property Total Taxable

Assessed Value

Total Direct Tax

Rate

2006 $ 25,094,995,870 $ 1,089,287,667 $ 26,184,283,537 $ 6,252,941,946 $ 19,931,341,591 3.59 2007 24,749,123,742 1,054,962,177 25,804,085,919 5,395,626,750 20,408,459,169 3.31 2008 23,342,934,476 1,082,067,364 24,425,001,840 4,800,459,251 19,624,542,589 3.31 2009 20,454,930,292 1,097,843,577 21,552,773,869 3,560,747,621 17,992,026,248 3.34 2010 18,401,045,182 1,076,333,765 19,477,378,947 2,868,254,851 16,609,124,096 3.41 2011 18,387,146,075 946,365,118 19,333,511,193 2,912,409,267 16,421,101,926 3.51 2012 18,551,617,089 908,950,096 19,460,567,185 2,833,483,666 16,627,083,519 3.72 2013 19,490,849,519 931,461,073 20,422,310,592 3,150,099,060 17,272,211,532 3.72 2014 21,228,631,119 942,986,167 22,171,617,286 3,948,840,288 18,222,776,998 3.71 2015 23,510,682,889 962,018,157 24,472,701,046 4,891,184,978 19,581,516,068 3.68

 

Notes: (1) Except for the Save Our Homes cap noted below, Florida State Law requires all property to be assessed at current fair market value. The Save Our Homes cap, provides that property qualifying for, and receiving, homestead exemption is assessed at the lower of the annual percentage change in the Consumer Price Index or 3% of the previous year's assessment. (2) As of December 31st of each year listed. Estimated Actual Value (Just Value) obtained from the Palm Beach County Appraiser

Source: Palm Beach County Property Appraiser

153

Estimated Actual Value

Taxable Assessed Value as a % of Actual

Taxable Value

$ 27,332,061,657 72.92% 26,952,069,988 75.72% 25,653,162,088 76.50% 22,731,156,856 79.15% 20,702,285,682 80.23% 20,550,742,753 79.91% 20,738,752,412 80.17% 21,630,010,810 79.85% 23,460,717,251 77.32% 25,841,728,608 75.77%

154

CITY OF BOCA RATON, FLORIDA PROPERTY TAX RATES

ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS (1)

(Unaudited)

Boca Raton Palm Beach County Schools Total Total

Tax Operating Debt City Operating Debt County Operating Debt Total Year Millage Service Millage Millage Service Tax Millage Service Schools Other Total

2006 3.300 0.289 3.589 4.280 0.198 4.478 7.704 0.160 7.864 3.219 19.150 2007 3.020 0.286 3.306 3.781 0.200 3.981 7.356 - 7.356 4.095 18.738 2008 3.020 0.286 3.306 3.781 0.185 3.966 7.251 - 7.251 3.071 17.594 2009 3.020 0.321 3.341 4.344 0.217 4.561 7.983 - 7.983 3.395 19.280 2010 3.020 0.386 3.406 4.750 0.246 4.996 8.154 - 8.154 3.544 20.100 2011 3.150 0.360 3.510 4.782 0.211 4.993 8.180 - 8.180 2.343 19.026 2012 3.410 0.313 3.723 4.782 0.209 4.991 7.778 - 7.778 3.314 19.806 2013 3.422 0.301 3.723 4.782 0.204 4.986 7.586 - 7.586 3.196 19.491 2014 3.422 0.291 3.713 4.782 0.191 4.973 7.594 - 7.594 2.270 18.550 2015 3.422 0.258 3.680 4.782 0.146 4.928 7.512 - 7.512 3.065 19.185

Source: Palm Beach County Tax Collector

(1) Millage rates are per $1,000 of assessed valuation.

155

CITY OF BOCA RATON, FLORIDA PRINCIPAL PROPERTY TAXPAYERS

FOR THE CURRENT CALENDAR YEAR AND NINE YEARS AGO (Unaudited)

      2015     2006       Percentage of     Percentage of     Taxable Total Taxable Taxable Total Taxable     Assessed Assessed Assessed Assessed

Taxpayer Value Rank Value Value Rank Value        

Town Center at Boca Raton $ 426,800,511 1 2.18% $ 282,389,261 1 1.03%Panthers BRHC Ltd. Partnership 185,198,344 2 0.95% 215,710,483 2 0.79%HUB Properties Trust 123,554,658 3 0.63% Boca Raton CRA Lessor 116,210,602 4 0.59% 152,900,000 3 0.56%Florida Power & Light Co 127,133,405 5 0.65% BRE Boca Raton CRA Lessor 98,246,201 6 0.50% 149,908,523 4 0.55%Boca Center at Military LLC 101,852,992 7 0.52% Royal Palm Place Investment L.L.C. 72,479,964 8 0.37% Panthers BRHC LLC 71,533,736 9 0.37% PR III Broadstone North Boca LLC 68,263,101 10 0.35%      

Total $ 1,391,273,514 7.11% $ 800,908,267 2.93%          

Source: City of Boca Raton, FL

Palm Beach County Tax Collector System

156

CITY OF BOCA RATON, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS (Unaudited)

 Fiscal Collected within the Year Taxes Levied Fiscal Year of the Levy Collections Total Collections To Date

Ended for the Percentage in subsequent PercentageSeptember 30, Fiscal Year Amount (1) of Levy Years Amount of Levy

2006 $ 61,751,848 $ 59,306,133 96.0% $ 57,197 $ 59,363,330 96.1% 2007 71,525,618 68,496,748 95.8% 75,208 68,571,956 95.9% 2008 67,464,124 64,951,993 96.3% 81,267 65,033,260 96.4% 2009 64,471,993 61,600,887 95.5% 127,751 61,728,638 95.7% 2010 59,403,108 56,434,548 96.8% 1,067,309 57,501,857 96.8% 2011 56,200,768 53,689,454 95.5% 513,040 54,202,493 96.4% 2012 57,438,380 55,175,170 96.1% 546,801 55,721,971 97.3% 2013 61,894,344 59,327,683 95.9% 207,820 59,535,503 96.2% 2014 64,295,809 61,803,940 96.1% 119,476 61,923,416 96.3% 2015 67,653,899 65,089,535 96.2% 121,220 65,210,755 96.4%

  (1) Includes discount taken for early payment of property taxes and current year refunds Source: Palm Beach County Tax Collector System

157

The information presented in this section is intended to assist users in understanding and assessing a government’s debt burden and its ability to issue additional debt.

DEBT CAPACITY INFORMATION

CITY OF BOCA RATON, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS (Unaudited)

   Governmental Activities

                                     General   Special Tax              

Fiscal   Obligation   Assessment Increment Revenue   Loans   Capital Year   Bonds   Bonds Bonds 2 Bonds   Payable   Leases

                                   

2006 $  54,390,000 $  12,460,000 $ 63,877,329 $ 220,000 $  8,065,000 $ 538,214 2007   50,990,000   11,955,000 60,153,275 -   6,235,000   424,172 2008   47,455,000   11,420,000 56,285,041   4,340,000   304,271 2009   43,785,000   11,205,000 52,265,146     3,400,000   178,211 2010   49,195,000   14,240,000 48,091,241     2,435,000   45,675 2011   44,960,000   13,545,000 43,741,269     1,865,000    

2012   39,905,000   12,830,000 39,212,947     1,275,000    

2013   36,490,000   11,925,000 34,489,628     655,000    

2014   33,105,000   10,995,000 29,554,660        

2015   29,345,000   10,020,000 24,197,700        

 

Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

1 See Demographic and Economic Statistics table for personal income and population data. These ratios are calculated using

personal income and population for the prior year.

2 Includes accreted interest on Capital Appreciation Bonds, for FY 2015 that amount was $13,719,897.

158

 

     

Business-Type Activities Water & Sewer Total Percentage Revenue Primary of Personal Per Bonds Government Income1 Capita1

$ 36,335,000 $ 175,885,543 0.0319% $ 2,057 34,455,000 164,212,447 0.0309% 1,925 55,920,000 175,724,312 0.0308% 2,060 52,700,000 163,533,357 0.0347% 1,928 50,045,000 164,051,916 0.0348% 1,946 46,900,000 151,011,269 0.0473% 1,789 43,640,000 136,862,947 0.0525% 1,602 40,260,000 123,819,628 0.0566% 1,439 36,780,000 110,434,660 0.0640% 1,284 34,345,000 97,907,700 0.0722% 1,116

159

CITY OF BOCA RATON, FLORIDA RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS (dollars in thousands, except per capita)

(Unaudited)  

Percentage General Assessed Value of Estimated

Fiscal Obligation of Taxable Actual Taxable Year Bonds Property Value of Property Population Per Capita

2006 $ 54,390 $ 16,624,250 0.33% 85,488 0.64 2007 50,990 19,931,342 0.26% 85,296 0.60 2008 47,455 20,408,459 0.23% 85,293 0.56 2009 43,785 19,624,543 0.22% 84,823 0.52 2010 49,195 17,992,026 0.27% 84,313 0.58 2011 44,960 16,609,124 0.27% 84,392 0.53 2012 39,905 16,421,102 0.24% 85,413 0.47 2013 36,490 16,627,084 0.22% 86,041 0.42 2014 33,105 17,272,212 0.12% 86,647 0.24 2015 29,345 18,222,777 0.16% 87,766 0.33  Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements The current ordinances of the City of Boca Raton do not specify a Legal Debt Margin.

160

CITY OF BOCA RATON, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

AS OF SEPTEMBER 30, 2015 (Amounts Expressed in Thousands)

(Unaudited)           Estimated   Estimated   Share of Debt Percentage   OverlappingGovernmental Unit Outstanding Applicable   Debt        

OVERLAPPING:          Palm Beach County $ 141,605 1 11.94% 2 $ 16,914 Palm Beach School District 19,103 11.94% 2 2,282       

SUBTOTAL $ 160,708    $ 19,196                   

DIRECT DEBT:       General obligation bonds $ 29,345 3 100.00% $ 29,345 Special assessment bonds 10,020 3 100.00%   10,020 Tax increment bonds 24,198 3, 4 100.00%   24,198            

SUBTOTAL $ 63,563   $ 63,563              

TOTAL DIRECT AND OVERLAPPING DEBT     $   82,759       

 

1 Source: Palm Beach County 2 Determined by dividing: taxable assessed valuation of the City of Boca Raton by the total taxable valuation of Palm Beach County. 3 Source: City of Boca Raton, Financial Services Department 4 Includes $13,719,897 of accreted interest on Capital Appreciation Bonds Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Boca Raton. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

161

CITY OF BOCA RATON, FLORIDA PLEDGED-REVENUE COVERAGE FOR WATER AND SEWER REVENUE BONDS

LAST TEN FISCAL YEARS (Unaudited)

Fiscal Utility

Service Less:

Operating Net Available Debt Service

Coverage by Net Revenue

Available for Year Charges Expenses (1) Revenue Principal Interest Debt Service (2)

2006 $ 41,600,339 $ 30,573,825 $ 11,026,514 $ 6,310,000 $ 1,682,493 1.38 2007 42,034,313 32,919,327 9,114,986 1,880,000 1,608,703 2.61 2008 43,604,523 33,606,413 9,998,110 1,955,000 2,010,842 2.52 2009 52,149,868 33,586,572 18,563,296 2,030,000 2,146,016 4.45 2010 48,766,835 30,780,072 17,986,763 2,655,000 1,942,669 3.91 2011 48,819,198 31,623,922 17,195,276 3,145,000 1,883,550 3.42 2012 49,926,107 31,677,197 18,248,910 3,260,000 1,766,594 3.63 2013 48,193,038 33,403,929 14,789,109 3,380,000 1,660,169 2.93 2014 51,875,748 33,444,376 18,431,372 3,480,000 1,558,838 3.66 2015 54,982,804 33,327,479 21,655,325 3,585,000 1,591,925 4.31

(1) Total expense exclusive of depreciation, amortization and debt service on revenue bonds.

(2) 1.10 net revenues test required by the rate covenants applies to the 2008 and 2009 bonds.

162

CITY OF BOCA RATON, FLORIDA PLEDGED-REVENUE COVERAGE FOR SPECIAL ASSESSMENT BONDS

LAST TEN FISCAL YEARS (Unaudited)

Fiscal Special

Assessment Debt Service Coverage by Net

Revenue AvailableYear Collections Principal Interest for Debt Service

2006 $ 1,518,115 $ 485,000 $ 596,730 1.40 2007 1,156,977 505,000 577,330 1.07 2008 1,179,630 535,000 557,130 1.08 2009 1,194,209 565,000 535,730 1.08 2010 1,170,054 670,000 400,453 1.09 2011 1,199,953 695,000 524,292 0.98 2012 1,172,570 715,000 493,294 0.97 2013 1,493,004 905,000 471,844 1.08 2014 1,483,647 930,000 446,294 1.08 2015 1,505,634 975,000 419,994 1.08

163

CITY OF BOCA RATON, FLORIDA PLEDGED-REVENUE COVERAGE FOR TAX INCREMENT REVENUE REFUNDING BONDS

LAST TEN FISCAL YEARS (Unaudited)

Fiscal Lease Tax

Increment City Debt Service

Coverage by Net Revenue Available for

Year Revenue Revenue Contribution Collections Principal (1) Interest Debt Service

2006 $ 1,180,000 $ 6,146,820 $ 7,326,820 $ 4,375,000 $ 2,002,655 1.15 2007 1,180,000 6,771,200 7,951,200 4,730,000 1,820,555 1.21 2008 1,208,198 6,308,900 7,517,098 4,925,000 1,624,993 1.15 2009 1,300,511 6,750,600 8,051,111 5,130,000 1,416,300 1.23 2010 1,188,119 6,658,892 7,847,011 5,340,000 1,193,760 1.20 2011 1,236,280 8,948,102 10,184,382 5,575,000 956,997 1.56 2012 1,300,374 6,484,150 7,784,524 5,815,000 704,206 1.19 2013 1,240,859 6,574,894 7,815,753 6,075,000 433,644 1.20 2014 1,489,383 6,729,850 8,219,233 6,355,000 146,959 1.26 2015 1,561,772 7,183,269 8,745,041 2,987,363 3,667,637 1.31

(1) In October, 1998, the Boca Raton Community Redevelopment Agency Tax Increment Revenue Refunding Bonds, Series 1998 (Mizner Park Project) was used to refinance the CRA's Tax Increment

Revenue Bond, Series 1992.

164

CITY OF BOCA RATON, FLORIDA PLEDGED-REVENUE COVERAGE FOR ALL NON AD VALOREM REVENUE BONDS AND LOANS PAYABLE

BY MAXIMUM ANNUAL DEBT SERVICE LAST TEN FISCAL YEARS

(Unaudited)  

Fiscal Year

Net Revenue

Available (1) Special Assessment Revenue

Bonds

Tax Increment Revenue

Refunding Bonds

(Loans Payable) First Florida Governmental Financing

Commission

Coverage by Net Revenue Available for

Maximum Debt Service

2001 2009 2010 1998 1998 2001B 2003 Total

2006 $68,935,375 $1,197,000 $ 6,655,000 $1,025,460 $ 695,200 $ 436,170 $ 10,008,830 6.89 2007 99,130,178 1,197,000 6,655,000 1,024,100 695,200 436,170 10,007,470 9.91 2008 98,219,243 1,197,000 6,655,000 692,175 433,670 8,977,845 10.94 2009 92,455,908 $ 1,162,388 6,655,000 691,855 433,670 8,942,913 10.34 2010 83,143,919 1,162,388 $ 286,769 6,655,000 691,855 8,796,012 9.45 2011 81,213,317 1,162,388 286,769 6,655,000 691,025 8,795,182 9.23 2012 85,929,358 1,162,388 286,769 6,655,000 691,025 8,795,182 9.77 2013 95,677,396 1,162,388 286,769 6,655,000 655,000 8,759,157 10.92 2014 90,074,334 1,162,388 286,769 6,655,000 8,104,157 11.11 2015 93,108,205 1,162,388 286,769 6,655,000 8,104,157 11.49

(1) Net revenue available after deducting operating expenses, restricted, and committed amounts.

165

This section is intended (1) to assist users in understanding the socioeconomic environment within which a government operates and (2) to provide informa-tion that facilitates comparisons of financial statement information over time and among governments.

DEMOGRAPHIC AND ECONOMIC INFORMATION

CITY OF BOCA RATON, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS (Unaudited)

 

        Personal Per            Income Capita Education  

Fiscal     (amounts expressed Personal Median Level in Years School UnemploymentYear Population³ in thousands)4 Income4 Age² of Schooling² Enrollment¹ Rate¹

             

2006 85,488 $  4,800,835 $ 56,158 43 13 8,532 3.7% 2007 85,296   4,334,487 50,817 44 13 11,574 4.8% 2008 85,293   4,617,507 54,137 44 13 11,574 6.3% 2009 84,823   4,811,500 56,724 45 13 12,132 7.9% 2010 84,313   4,809,129 57,039 45 13 12,529 9.1% 2011 84,392   6,026,770 71,414 45 13 13,188 9.7% 2012 85,413   6,133,166 71,806 45 13 12,998 9.0% 2013 86,041   6,028,635 70,067 45 13 13,235 7.6% 2014 86,647   6,125,856 70,699 45 13 13,243 6.3% 2015 87,766   6,204,968 70,699 45 13 13,737 5.2%

 

Source¹: Bureau of Labor Statistics for West Palm Beach-Boca Raton-Boynton Beach, FL Metropolitan Division 2014 School Enrollment Information - www.Palmbeachschools.org Source²: Business Development Board of Palm Beach County Source³: Office of Economic and Demographic Research *Source4 US Census Bureau (2011-2014 reflect median income)

*2015 data indicates the most recent information available at the time of statement issuance.

166

CITY OF BOCA RATON, FLORIDA PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO (Unaudited)

 

  2015* 2006       Percentage       Percentage Number of   of Total City Number of   of Total City

Employer Employees Rank Employment (1) Employees Rank Employment                        Florida Atlantic University 2,655 1 2.67% 2,825 1 N/ABoca Raton Regional Hospital 2,500 2 2.52% 1,700 4 N/AOffice Depot (Headquarters) 2,000 3 2.01%    City of Boca Raton 1,333 4 1.34% 1,880 3 N/ABoca Raton Resort and Club 1,292 5 1.30% 2,200 2 N/ANational Council of Comp Ins (NCCI) 923 6 0.93%   950      6 N/ATyco (Headquarters) 850 7 0.86% 600 10 N/AADT Security Services (Headquarters) 600 8 0.60%    

International Bus. Machines (IBM) 600 9 0.60% 600 9 TMS Health (Headquarters) 560 10 0.56% Prime Management Group Inc   640 8 Siemens (and local subsidiaries)   650 7 N/AHollander Home Fashions   1,200 5 N/A

TOTAL

13,313 13.39% 13,245          

 

Source of 2006 data: 2006 City of Boca Raton CAFR

Source of 2015 data: Business Development Board

* 2015 data indicates the most recent information available at the time of statement issuance  

167

CITY OF BOCA RATON, FLORIDA FULL-TIME EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS (Unaudited)

 

  Fiscal Years  2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Function/Program        

General government 204 191 168 167 155 155 159 159 165 184      

Public safety      

Police      

Officers 198 198 198 198 199 198 198 198 198 198 Civilians 106 106 99 98 97 97 97 97 97 97      

Fire      

Firefighters and officers 207 207 207 207 207 205 205 205 205 205 Civilians 12 12 10 10 10 10 11 11 11 11      

Highways and streets      

Engineering 13 12 10 10 9 9 9 9 8 8 Maintenance 13 18 16 16 16 17 16 16 16 16      

Sanitation 55 55 53 53 53 52 49 46 46 46      

Culture and recreation 296 324 300 290 273 273 281 296 299 314  

Water/sewer 148 169 165 165 167 165 166 164 164 167      

Stormwater 8 9 9 10 11 11 11 11 11 11  

Information technology 23 22 21 22 22 24 25 27 30 35      

Motor pool 15 13 13 13 12 12 12 12 13 13      

Golf course 23 24 24 24 24 24 23 23 23 23      

Cemetery 5 5 5 5 5 5 5 5 5 5      

TOTAL 1,326 1,365 1,298 1,288 1,260 1,257 1,267 1,279 1,291 1,333  

Source: City of Boca Raton Approved Budget Book 2014-2015

168

PAGE INTENTIONALLY LEFT BLANK

This section is intended to provide contextual information about a government’s operations and resources to assist readers in using financial statement information to understand and assess a govern-ment’s economic condition.

OPERATING INFORMATION

CITY OF BOCA RATON, FLORIDA OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS (Unaudited)

Fiscal Years Function/Program 2006 2007 2008 2009 Governmental activities: General government Bond ratings - G.O. bonds Moody's Aaa Aaa Aaa Aaa Standard & Poor's AAA AAA AAA AAA Fitch AAA AAA AAA AA Building permit applications 12,674 10,368 8,329 7,270 Law enforcement Physical arrests 2,036 2,250 3,165 3,049 Parking violations 2,984 2,046 4,516 2,323 Traffic violations 27,177 21,112 25,190 23,620 Fire rescue Number of calls answered 15,762 15,993 15,548 15,013 Inspections 6,001 6,381 6,912 6,538 Transportation Streets resurfacing (miles) 10 9 7 4 Potholes repaired - 388 112 175 Potholes repaired (tons) ** ** ** Physical environment Refuse collection(tons/daily) 183 134 125 121 Recyclables collected (tons/daily) 22 33 19 19 Parks & recreation Athletic field permits issued 7,977 9,078 9,267 8,446 Community center admissions 362,908 391,928 413,855 436,265 Tennis participation 212,422 237,553 210,794 191,245 Camp programs 2,505 2,489 2,177 2,156 Aquatics participation programs 47,191 51,176 53,556 53,152 Business-type activities: Water New connections (excl Iris) 384 292 97 128 Water mains breaks 76 25 23 23 Average daily consumption (thousands of gallons) 41,854 35,480 36,870 39,500 Active accounts 35,499 35,804 35,921 36,040 Sewer Average daily sewage treatment (thousands of gallons) 14,744 13,350 13,174 12,523 Active accounts 32,082 32,338 32,512 32,733 Golf courses Annual golf permits 170 146 126 120 Golf participation 119,462 130,687 125,933 124,265

169

CITY OF BOCA RATON, FLORIDA OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS (Unaudited)

2010 2011 2012 2013 2014 2015

Aaa Aaa Aaa Aaa Aaa Aaa AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA

6,957 6,738 7,542 8,150 7,578 8,065

3,324 2,948 2,939 2,992 3,057 3,745 2,574 1,624 958 639 677 373

27,354 26,393 25,985 31,481 41,097 37,127

15,550 15,762 16,192 15,737 16,310 17,275 7,090 7,202 5,855 7,131 4,451 5,294

10 - 18 20 9 7 ** ** ** 260 ** 38

10 14 11 10 5 4

143 123 112 132 136 139 34 19 25 18 17 16

8,269 8,381 8,698 9,185 9,395 9,150 431,894 456,238 456,802 450,381 453,848 458,030 193,444 191,877 188,231 189,477 196,156 203,465

2,238 3,667 3,093 3,097 3,271 2,899 54,791 62,374 57,749 59,024 56,830 58,125

62 86 147 80 77 30 20 33 130 85 58 33

34,427 34,700 31,630 30,490 32,481 34,530 36,081 36,200 36,375 34,522 36,800 36,488

13,130 12,520 13,656 12,345 14,180 13,269 32,887 32,973 33,141 33,018 33,262 33,492

97 80 72 64 55 50 96,878 105,055 107,037 108,724 106,122 106,162

170

CITY OF BOCA RATON, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS (Unaudited)

  Fiscal Years

Function/Program

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Governmental activities Law enforcement Police stations/substations 4 2 2 2 2 2 2 2 2 2 Patrol units 247 210 227 234 230 230 230 230 293 229 Fire rescue Fire stations 8 8 8 8 8 8 8 8 8 8 Fire rescue units 33 33 33 33 33 33 33 33 33 33 Physical environment Sanitation-collection trucks 33 35 35 35 35 35 35 35 35 40 Transportation Street (miles) 252 225 219 224 219 219 218 220 220 220 Street lights 384 381 384 384 384 857 857 863 863 863 Traffic signals 135 134 135 136 136 136 136 136 136 136 Lane miles 510 490 484 495 486 486 485 487 487 487 Parks and recreation Park acreage 551 551 551 551 551 551 636 636 636 638 Parks 31 31 31 31 31 31 32 32 32 32 Swimming pools 3 2 2 2 2 2 2 2 2 2 Tennis centers 3 3 3 3 3 3 3 3 3 3 Community centers 3 3 3 3 3 3 3 3 3 3 Public libraries 1 1 2 2 2 2 2 2 2 2 Public beaches (miles) 2 2 2 2 2 2 2 2 2 2 Business-type activities Water Water mains & service lines(miles) 547 550 535 535 560 546 560 560 705 706 Fire hydrants 5,035 5,397 5,397 5,419 5,448 5,421 5,503 5,567 5,567 5,512 Maximum daily capacity (thousands of gallons) 70 70 70 70 70 70 70 70 70 70 Sewer Sanitary sewers & service laterals (miles) 343 344 480 482 385 512 513 516 604 591 Maximum daily treatment capacity 15 18 18 18 18 18 18 18 18 18 (thousands of gallons) Waste water pumping stations 238 237 233 238 238 236 238 240 239 240 Cemetery 1 1 1 1 1 1 1 1 1 1 Golf courses 3 3 3 3 3 3 3 3 3 3 Storm water utilities Storm sewer( miles) 51 63 63 64 99 99 100 100 100 100

     The Capital Assets listed above include those operated by the City of Boca Raton.  No capital asset indicators are available. 

171

CITY OF BOCA RATON, FLORIDA

REPORTING SECTION

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

CITY OF BOCA RATON, FLORIDA

TABLE OF CONTENTS

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........... 172-173 Independent Auditors’ Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 ..................................................................................................... 174-176 Schedule of Expenditures of Federal Awards ...........................................................................177 Notes to Schedule of Expenditures of Federal Awards ............................................................178 Schedule of Findings and Questioned Costs ..................................................................... 179-180 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida ................................................................................................................ 181-183 Independent Accountants’ Report on Compliance Pursuant to Section 218.415 Florida Statutes ............................................................................................................................ 184

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172

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor, City Council and City Manager City of Boca Raton, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Boca Raton, Florida (the City) as of and for the fiscal year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 30,2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

173

Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. West Palm Beach, FL March 30, 2016

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174

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR

EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF

EXPENDITURES OF FEDERAL AWARDS REQUIRED BY OMB A-133

To the Honorable Mayor, City Council and City Manager City of Boca Raton, Florida Report on Compliance for Each Major Federal Program We have audited the City of Boca Raton, Florida’s (the City’s) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal programs for the fiscal year ended September 30, 2015. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

175

Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal programs for the fiscal year ended September 30, 2015. Report on Internal Control Over Compliance Management of the City is responsible 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 internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133 but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the 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. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.

176

Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the fiscal year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 30, 2016, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial 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 federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. West Palm Beach, FL March 30, 2016

See note to schedule of expenditures of federal awards.

177

CITY OF BOCA RATON, FLORIDA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

Grantor/Pass-Through Grantor/ Program/Project Title Grant/Contract NumberCFDA

Number Expenditures

U.S. Department of Justice:Direct Programs:

Federal Equitable Sharing Agreement N/A 16.922 118,578$ Bullet Proof Vest Partnership Program 16.607 15,372 Edward Byrne Memorial Justice Assistance Grant 2013-DJ-BX-0188 16.738 13,109

Total U.S. Department of Justice 147,059

U.S. Department of Treasury:Direct Programs:

Federal Equitable Sharing Agreement N/A 21.000 37,900

Total U.S. Department of Justice 37,900

U.S. Department of Housing and Urban Development:Direct Programs:

Community Development Block Grant (CDBG) B-12-MC-12-0001 14.218 196,290 Community Development Block Grant (CDBG) B-13-MC-12-0001 14.218 181,175

Total U.S. Department of Housing and Urban Development: 377,465

Total Expenditures of Federal Awards 562,424$

N/A

178

CITY OF BOCA RATON, FLORIDA

NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 NOTE 1 – BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal awards (the schedule) includes the federal activity of the City of Boca Raton (the City) under programs of the federal government for the fiscal year ended September 30, 2015. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported in the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as a reimbursement, except for the equitable sharing programs for Justice and Treasury which follows the Guide to Equitable Sharing for State and Local Law Enforcement Agencies. Pass-through entity identifying numbers are presented where available.

NOTE 3 – SUBRECIPIENTS

Of the federal expenditures presented in the schedule, the City provided federal awards to subrecipients as follows:

Grant Identifying Amount ProvidedCFDA Program Name Number To Subrecipients

14.218 CDBG Block Grant B-11-MC-12-0001 $62,443

CITY OF BOCA RATON, FLORIDA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015

179

SECTION I – SUMMARY OF AUDITORS’ RESULTS

Financial Statements Type of auditors’ report issued: Unmodified Opinion Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified not considered to be material weaknesses? Yes X None reported

Non-compliance material to financial statements noted? Yes X No

Federal Awards and State Projects

Internal control over major awards program: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified not considered to be material weakness(es)? Yes X None reported

Type of auditors’ report issued on compliance for major federal program and state project:

Unmodified Opinion

Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section 510(a)? Yes X No

Identification of major federal programs:

Federal Program CFDA No. Federal Equitable Sharing - DOJ Federal Equitable Sharing - DOT

16.922 21.000

Dollar threshold used to distinguish between

Type A and Type B programs: $300,000

Auditee qualified as low risk auditee for federal programs? X Yes No

180

CITY OF BOCA RATON, FLORIDA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 SECTION II – FINANCIAL STATEMENT FINDINGS None reported SECTION III– FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS None reported SECTION IV – SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR FEDERAL AWARDS AND

STATE PROJECTS None reported

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181

MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

To the Honorable Mayor, City Council, and City Manager City of Boca Raton, Florida

Report on the Financial Statements We have audited the financial statements of the City of Boca Raton, Florida (the City), as of and for the fiscal year ended September 30, 2015, and have issued our report thereon dated March 30, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB A-133; Schedule of Findings and Questioned Costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated March 30, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding annual financial audit report.

182

Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The City has made these disclosures in the notes to the financial statements.

Financial Condition Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the City’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. The assessment was done as of the fiscal year end. Annual Financial Report Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the City for the fiscal year ended September 30, 2015, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2015. In connection with our audit, we determined that these two reports were in agreement. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.

183

Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, Council Members, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. West Palm Beach, FL March 30, 2016

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184

INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE PURSUANT TO

SECTION 218.415 FLORIDA STATUTES

To the Honorable Mayor, City Council and City Manager City of Boca Raton, Florida We have examined the City of Boca Raton, Florida (the City)’s compliance with Section 218.415 Florida Statutes for the fiscal year ended September 30, 2015. Management is responsible for City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City’s compliance with specified requirements. In our opinion, the City of Boca Raton, Florida complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2015. This report is intended solely for the information and use of management, City Council, others within the City and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. West Palm Beach, FL March 30, 2016