IMMOKALEE WATER & SEWER DISTRICT...IMMOKALEE WATER & SEWER DISTRICT 1020 SANITATION ROAD IMMOKALEE,...

IMMOKALEE WATER & SEWER DISTRICT

1020 SANITATION ROAD IMMOKALEE, FL 34142 TELEPHONE (239) 658-3630

February 02, 2017

NOTICE OF MEETING

There will be a Regular Meeting of the Board of Commissioners for the Immokalee Water & Sewer District, on Wednesday,

February 15, 2017 at 4:30 P.M. at the office of the Immokalee Water & Sewer District, located at 1020 Sanitation Rd,

Immokalee, FL 34142.

REGULAR MEETING AGENDA

1. Call to Order

2. Preliminaries

A. Pledge of Allegiance

B. Roll Call

C. Adoption of Agenda

D. Employee Recognition

1. November 2016- Norma Garcia

2. December 2016- Andrea Sanchez

E. Public Concerns

F. Staff Good Cause Items

G. Board Concerns

H. Old Business

1. USDA Documents

I. New Business

3. Consent Agenda

A. Adoption of Minutes

1. January 18, 2017 Board Meeting

B. Civil Rights Compliance Report

C. January Budget Review

D. Fixed Assets Acquisitions-Disposals

E. Various Reports

F. Project Change Orders

G. Engineer’s Report – Greeley and Hansen

H. Director’s Report

4. Action Agenda

A. 2015-2016 Audit Review and Approval

5. Discussion Agenda

A. Attorney's Report

6. Other Public Interests

7. Adjournment

“Public discussion will be limited to three (3) minutes per speaker, unless additional information is requested, and additional time is granted by the Board

Members.”

SPECIAL REQUIREMENTS: If you require special aid or services as addressed in the American Disabilities Act, please contact the District office at

(239) 658-3630, no less than five (5) days prior to the above stated workshop date.

IMMOKALEE

WATER & SEWER

DISTRICT

1020 SANITATION ROAD IMMOKALEE, FL 34142 TELEPHONE (239) 658-3630

M E M O

To: IWSD Board Members

From: Norma Garcia

Date: February 02, 2017

Subject: Special Dates

These employees will have/had the following special dates this month:

February 01, 2017 Veronica Garcia’s Birthday- Clerk/Secretary- Dept. 40

February 02, 2017 Kerbi Alexandre Birthday –“C” Operator-Dept. 10

February 07, 2017 Armando Herrera’s Birthday –WW Service Tech IV – Dept.30

February 07, 2017 Roy Herrera's 3 Month Anniversary-Service Tech I-Dept. 10

February 10, 2017 Jo Ann Ramey’s Birthday- Distribution Coordinator-Dept. 10

February 17, 2017 Oona Reyna’s 22 Year Anniversary-Administration Supervisor- Dept. 40

February 21, 2017 Armando Herrera’s 10 Year Anniversary-WW Service Tech IV - Dept. 30

January 18, 2017

Page 1

IMMOKALEE

WATER & SEWER

DISTRICT 1020 SANITATION ROAD IMMOKALEE, FLORIDA 34142 (239) 658-3630

January 18, 2017

The first item on the agenda was the Call to Order:

Mr. Brister called the meeting to order at 4:30 p.m.

Next was Roll Call:

Mr. Brister asked for a roll call.

Board Members Present:

Mr. Joseph Brister, Mrs. Bonnie Keen, Mr. Fred N. Thomas, Jr., Mr. Jack Johnson,

Mr. Robert Halman, Ms. Magda Ayala and Ms. Anne Goodnight.

Staff Present:

Mr. Kenneth Thompson, Mrs. Eva Deyo, Mrs. Norma Garcia,

Ms. Oona Reyna-Rodriguez and Mr. Gary Ferrante with Greeley and Hansen.

Others Present:

Please see sign in sheet.

Next was Agenda:

Mr. Thomas made a motion to approve the Agenda as it has been submitted.

Ms. Goodnight seconded the motion.

Motion carried unanimously.

Next was Employee of the Month:

Mrs. Deyo asked it to be moved to next month.

(ROLL CALL

OF OFFICERS)

(MOTION TO

APPROVE

AGENDA)

(EMPLOYEE

OF THE

MONTH)

January 18, 2017

Page 2

Public Concerns:

Ms. Clarita Benitez stated that she would be speaking in place of her mother Ms. Maria

Espinosa. Ms. Benitez asked the Board if they could fix her drive way because she felt

that due to the culvert, it has cracked more than it was. She felt that being Immokalee

Water & Sewer District helped pay for her neighbors driveway, they should help her as

well.

The Board discussed the driveway at 1216 N. 18th St in detail.

The Board advised Ms. Benitez that the culvert is maintained by the County and not

Immokalee Water & Sewer District and that she should talk to them.

Mr. Ron Seaman addressed the Board and asked to get the base rates waived for a 4 inch

meter because he was not in business and only had one employee working.

The Board discussed the rates in detail. After much discussion the Board decided not to

waive the fees and suggested different options to Mr. Seaman.

Staff Good Cause Items:

There was none.

Board Concerns:

There was none.

Old Business:

Mrs. Deyo stated that they still don’t have any documents from USDA.

New Business:

There was none.

Consent Agenda:

Mr. Thomas made a motion to approve the Consent Agenda.

Ms. Goodnight seconded the motion.

Motion carried unanimously.

Action Agenda:

There was none.

(MOTION TO

APPROVE

CONSENT

AGENDA)

January 18, 2017

Page 3

NEXT WAS ATTORNEYS REPORT:

Next was Adjournment:

Meeting adjourned at 5:12 p.m.

Reviewed by:

Bonnie Keen - Secretary Date

(MEETING

ADJOURNED)

To Board of Directors

Immokalee Water & Sewer District

From Civil Rights Committee


This is to inform you that there was nothing brought before the Civil Rights Committee

in the Month of January 2017.

Norma Garcia

Civil Rights Committee

Budgeted Amount Amount GL# Description Amount: Used: Remaining:

DEPT 10

1350.00 Meter Replacement Program 150,000$ 56,242$ 93,758$ 1430.00 2-F250 4*4 69,932$ 69,932$ (0)$ 1330.00 Hydraulic Dump Trailer 6,100$ 6,101$ (1)$ 1330.00 Walk behind concrete saw 2,123$ 2,123$

-$ 1330.00 -$ 1330.00 -$

Other Capital & Emergency Funds: 69,477$ 5,805$ 63,672$

1330.00 3-tranducer-s9th, carson, airport 5,805$ 1330.001330.001330.00

5,805$

Department Total: 297,632$ 138,080$ 159,552$ DEPT 20

1330.00 Aerobic Digester TSS Meter 7,130 7,1301330.00 John Deere Z920 M with canopy 9,204 9,2041330.00 0

0

Other Capital & Emergency Funds: 59,706$ 20,424$ 39,282$

1330.00 fencing 20,424$ 1330.001330.001325.001658.00

20,424$

Department Total: 76,040$ 20,424$ 55,616$

DEPT 30

1330.00 LIFT STATION REPLACEMENT PARTS 50,000$ -$ 50,000$ 1390.00 Manhole Replacement 50,000$ 10,000$ 40,000$ 1390.00 Lift Station Rehab A2, O2, X7, etc 150,085$ 76,678$ 73,407$ 1330.00 Lift Station SCADA System 6,802$ 6,802$ 1330.00 Cargo Enclosed Trailers 3,695$ 4,009$ (314)$

-$ -$ -$

Other Capital & Emergency Funds: 59,706$ -$ 59,706$

1330.001325.00

-$


DEPT 40

1330.00 Folding machine 5,400$ 6,231$ (831)$ 1320.00 Admin Office window/doors 40,000$ 2,033$ 37,967$

-$ -$ -$


1330.001325.001330.00

-$


DEPT 50

1430.00 F250 4*4 34,966$ 34,966$ -$


1330.00

-$


All Departments Total: 809,433$ 292,421$ 517,012$

GRANT FUNDS1330.00 -$ 1330.00 -$

Total Other Capital & Emergency Funds: 223,996$ 26,229$ 197,767$

BREAKDOWN OF CAPITAL EXPENDITURES

January-17

10/01/16-01/31/17

Actual Budget

Over/

(Under)

Budget

PY Actual

01/16 Actual Budget

Over/

(Under)

Budget

PY Actual

10/15-01/16Revenue from Operations

4000.00 SALES - WATER 280,505$ 231,591$ 48,914$ 240,340$ 999,268$ 926,364$ 72,904$ 902,584$

4010.00 SALES - SEWER 441,086 398,037 43,049 414,480 1,645,406 1,592,148 53,258 1,557,456

4020.00 METER SERVICE CHARGE 54,316 50,178 4,138 50,350 212,979 200,712 12,267 198,098

4030.00 LATE FEES 6,740 8,818 (2,078) 7,495 30,970 35,272 (4,302) 29,900

4050.00 RECONNECTION & TRANSFER FEES 11,135 4,167 6,968 10,195 33,780 16,668 17,112 29,805

4070.00 INTEREST INCOME 1,161 4,167 (3,006) 3,631 14,862 16,668 (1,806) 17,168

4071.00 ARROWHEAD ASSESSMENT INCOME 0 0 0 0 - - - -

4080.00 CAPITAL CREDITS-ELECT COOP. 0 0 0 0 - - - -

4090.00 ASSESSMENT FORECLOSURE FEES 0 453 (453) 0 - 1,812 (1,812) -

4095.00 HYDRANT FEES 0 0 0 0 - - - -

4100.00 MISCELLANEOUS INCOME 13,783 4,167 9,616 4,387 39,726 16,668 23,058 27,862

4105.00 GAIN/LOSS 0 (2,083) 2,083 0 (11,359) (8,333) (3,026) -

4106.00 CROSS CONNECTION CONTROL FEE 28,971 26,287 2,684 25,632 110,482 105,148 5,334 301,261

4110.00 CELLULAR TOWER LEASE 2,886 3,856 (970) 1,026 11,543 15,424 (3,881) 11,070

4120.00 FORFEITED SECURITY DEPOSITS 0 0 0 0 - - - -

4125.00 INSURANCE REIMBURSEMENT 0 0 0 0 - - - -

4130.00 FORFEITED 401A 0 0 0 0 1,951 - 1,951 -

4131.00 GRANT INCOME/FEDERAL 0 0 0 0 - - - -

4132.00 MASTER PLAN CONTRIBUTION 0 0 0 0 - - - -

4133.00 TRAINING GRANT INCOME 0 0 0 0 - - - -

Total Revenue 840,583$ 729,638$ 110,945$ 757,536$ 3,089,608$ 2,918,550$ 171,058$ 3,075,204$

$2,981,517

OPERATING EXPENSES:

Water Department 10 - Expenses 151,165$ 167,709$ (16,544)$ 145,451$ 646,519$ 670,836$ (24,317)$ 556,304$

Wastewater Department 20 - Expenses 145,838 144,894 944 152,688 649,895 579,576 70,319 604,400

Wastewater Collection - Department 30 Expenses 53,916 69,733 (15,817) 64,494 240,023 278,932 (38,909) 268,050

Administration Department 40 Expenses 99,180 120,907 (21,477) 120,109 415,976 483,628 (67,652) 455,710

Maintenance Department 50 - Expenses 59,007 55,667 3,340 46,383 163,174 222,668 (59,494) 140,656

Miscellaneous Expenses $156,833 $221,188 ($64,355) $151,730 635,103 884,753 (249,649) 615,507

Total Operating Expenses 665,939$ 780,098$ (113,909)$ 680,855$ 2,750,690$ 3,120,393$ (369,702)$ $2,640,626

Accruals for Principle Payments 256,500$ 256,500$ -$ 256,500$ 256,500$ -$

Net Surplus (Deficit) (81,856)$ (306,961)$ 224,854$ 76,681$ 82,418$ (458,342)$ 540,760$ 434,578$

01/01/17-01/31/17

Page 1

10/01/16-01/31/17

Actual Budget

Over/

(Under)

Budget

PY Actual

01/16 Actual Budget

Over/

(Under)

Budget

PY Actual

10/15-01/16

01/01/17-01/31/17

Operating Expenses

Water Department 10 - Expenses

5000.10 SALARIES & WAGES - WTP 47,784$ 58,505$ (10,721)$ 34,860$ 182,844$ 234,020$ (51,176)$ 167,500$

5002.10 OVERTIME WAGES - WTP 2,338 7,175 (4,837) 6,724 10,164 28,700 (18,536) 15,943

5006.10 FICA - WTP 3,834 5,025 (1,191) 3,762 15,689 20,100 (4,411) 15,221

5060.10 UNEMPLOYMENT TAXES 50 87 (37) 563 54 348 (294) 572

5090.10 EMPLOYER PENSION CONT. 2,621 3,510 (889) 2,475 9,036 14,040 (5,004) 10,122

5095.10 HEALTH/LIFE INSURANCE 44,506 20,542 23,964 49,136 89,624 82,168 7,456 93,352

5098.10 WORKERS' COMPENSATION 2,731 3,415 (684) 1,966 17,910 13,660 4,250 12,340

5155.10 TRAVEL & TRAINING 1,419 2,167 (748) 2,207 2,116 8,668 (6,552) 6,751

5180.10 TELEPHONE & FAX 622 702 (80) 744 2,210 2,808 (598) 2,536

5220.10 ELECTRIC 12,716 14,821 (2,105) 13,476 49,075 59,284 (10,209) 49,861

5250.10 GENERAL LIABILITY INSURANCE 0 1,672 (1,672) 0 18,463 6,688 11,775 17,911

5255.10 COMP. AUTO INSURANCE 0 833 (833) 0 9,489 3,332 6,157 8,925

5260.10 OTHER INSURANCE 0 7,621 (7,621) 0 78,291 30,484 47,807 81,656

5282.10 REPAIRS & MAINTENANCE 6,105 12,528 (6,423) 7,209 41,159 50,112 (8,953) 62,294

5287.10 OTHER CONTRACT SERVICES 1,450 2,228 (778) 2,089 9,288 8,912 376 9,238

5300.10 VEHICLE FUEL 0 2,221 (2,221) 1,422 4,472 8,884 (4,412) 5,819

5310.10 VEHICLE MAINTENANCE 338 1,817 (1,479) 3,687 3,754 7,268 (3,514) 4,668

5520.10 LICENSES AND PERMITS 423 357 66 242 1,623 1,428 195 342

5580.10 CHEMICALS 5,799 8,728 (2,929) 8,584 26,160 34,912 (8,752) 30,493

5582.10 OTHER MATERIALS 16,874 10,984 5,890 5,645 67,694 43,936 23,758 (45,467)

5585.10 LABORATORY FEES 1,555 2,340 (785) 60 6,935 9,360 (2,425) 4,825

5600.10 UNIFORMS/CLOTHING ALLOWANCE 0 325 (325) 100 354 1,300 (946) 716

5605.10 MEMBERSHIPS/BOOKS 0 106 (106) 500 115 424 (309) 686

Total Department 10 Expenses 151,165$ 167,709$ (16,544)$ 145,451$ 646,519$ 670,836$ (24,317)$ 556,304$

*Wages expense was reduced to reflect capitalized labor for installation of new meters and replaced meters -$11,354 for YTD

In this department, other materials is used for purchases of meters, meter boxes, lids, and other parts. At the end of the month, the GL asset account -Inventory is

reduced based on work orders, or increased based on purchases. When the meter is installed, it is then moved to Fixed Assets - Meters.

Vehicle maintenance includes expenses for stocking vehicle related inventory at the maintenance department.

Page 2

10/01/16-01/31/17

Actual Budget

Over/

(Under)

Budget

PY Actual

01/16 Actual Budget

Over/

(Under)

Budget

PY Actual

10/15-01/16

01/01/17-01/31/17

Wastewater Department 20 - Expenses

5000.20 SALARIES & WAGES - WWTP 42,849$ 43,839$ (990)$ 40,002$ 181,580$ 175,356$ 6,224$ 177,256$

5002.20 OVERTIME WAGES - WWTP 2,809 2,226 583 1,909 6,170 8,904 (2,734) 6,419

5006.20 FICA - WWTP 3,493 3,524 (31) 3,159 14,361 14,096 265 13,855




5098.20 WORKERS' COMPENSATION 1,920 2,395 (475) 1,307 11,862 9,580 2,282 7,646

5155.20 TRAVEL & TRAINING 264 1,500 (1,236) 0 1,619 6,000 (4,381) 1,421

5180.20 TELEPHONE & FAX 265 309 (44) 139 970 1,236 (266) 655

5220.20 ELECTRIC 19,295 20,034 (739) 20,414 72,184 80,136 (7,952) 78,142

5230.20 SECTION 8 ELECTRIC 538 728 (190) 583 1,791 2,912 (1,121) 1,876



5260.20 OTHER INSURANCE 0 7,193 (7,193) 0 73,686 28,772 44,914 77,069

5281.20 SECTION 8 FIELD MAINTENANCE 0 1,338 (1,338) 0 - 5,352 (5,352) -

5282.20 REPAIRS & MAINTENANCE 9,596 10,497 (901) 8,601 91,256 41,988 49,268 47,793

5283.20 SECTION 8 REPAIRS 0 1,209 (1,209) 7,862 - 4,836 (4,836) 7,862

5287.20 OTHER CONTRACT SERVICES 35 5,914 (5,879) 820 3,627 23,656 (20,029) 3,981

5300.20 VEHICLE FUEL 0 906 (906) 156 1,800 3,624 (1,824) 2,335

5310.20 VEHICLE MAINTENANCE 436 1,220 (784) 197 1,758 4,880 (3,122) 3,550

5520.20 LICENSES AND PERMITS 0 1,018 (1,018) 5,000 - 4,072 (4,072) 5,000

5580.20 CHEMICALS 14,517 6,191 8,326 5,339 40,000 24,764 15,236 17,282

5582.20 OTHER MATERIALS 2,873 4,181 (1,308) 5,540 11,780 16,724 (4,944) 16,086

5585.20 LABORATORY FEES 1,852 3,119 (1,267) 484 10,677 12,476 (1,799) 7,059

5590.20 RESIDUALS MANAGEMENT 8,901 8,122 779 15,695 28,935 32,488 (3,553) 34,940

5600.20 UNIFORMS/CLOTHING ALLOWANCE 142 200 (58) 100 601 800 (199) 275


Total Department 20 Expenses 145,838$ 144,894$ 944$ 152,688$ 649,895$ 579,576$ 70,319 604,400$

Vehicle maintenance also includes expenses for stocking vehicle related inventory at the maintenance department.

Other materials includes expenses for gloves, paper towels, small tools, parts, etc. It will also include a portion of the costs to set up the storage area at

the maintenance department.

Page 3

10/01/16-01/31/17

Actual Budget

Over/

(Under)

Budget

PY Actual

01/16 Actual Budget

Over/

(Under)

Budget

PY Actual

10/15-01/16

01/01/17-01/31/17

Wastewater Collection - Department 30 Expenses

5000.30 SALARIES & WAGES - WWC 21,467$ 27,838$ (6,371)$ 21,718$ 89,938$ 111,352$ (21,414)$ 93,364$

5002.30 OVERTIME WAGES - WWC 1,355 2,898 (1,543) 2,141 5,679 11,592 (5,913) 7,582

5006.30 FICA- WWC 1,745 2,351 (606) 1,812 7,342 9,404 (2,062) 7,674



5095.30 HEALTH/LIFE INSURANCE 18,420 9,936 8,484 22,767 38,843 39,744 (901) 43,092

5098.30 WORKERS COMPENSATION 1,256 1,598 (342) 865 6,446 6,392 54 4,814

5155.30 TRAVEL & TRAINING 0 1,000 (1,000) 0 (1,100) 4,000 (5,100) 1,901

5180.30 TELEPHONE & FAX 103 179 (76) 169 264 716 (452) 556

5220.30 ELECTRIC 2,655 3,385 (730) 3,106 8,733 13,540 (4,807) 10,998



5260.30 OTHER INSURANCE 0 112 (112) 0 1,151 448 703 1,201

5282.30 REPAIRS & MAINTENANCE 3,329 5,871 (2,542) 3,787 28,609 23,484 5,125 45,384

5287.30 OTHER CONTRACT SERVICES 0 554 (554) 95 995 2,216 (1,221) 1,630

5300.30 VEHICLE FUEL 0 1,211 (1,211) 817 2,215 4,844 (2,629) 2,446

5310.30 VEHICLE MAINTENANCE 200 4,069 (3,869) 385 9,268 16,276 (7,008) 4,895

5520.30 LICENSES AND PERMITS 142 776 (634) 0 142 3,104 (2,962) 237

5580.30 CHEMICALS 0 146 (146) 0 - 584 (584) -

5582.30 OTHER MATERIALS 2,000 3,722 (1,722) 5,323 13,603 14,888 (1,285) 13,658

5600.30 UNIFORMS/CLOTHING ALLOWANCE 100 150 (50) 0 148 600 (452) 105


Total Department 30 Expenses 53,916$ 69,733$ (15,817)$ 64,494$ 240,023$ 278,932$ (38,909)$ 268,050$


Other materials includes expenses for gloves, paper towels, small tools, parts, etc. It will also include a portion of the costs to set up the storage area at

the maintenance department.

Page 4

10/01/16-01/31/17

Actual Budget

Over/

(Under)

Budget

PY Actual

01/16 Actual Budget

Over/

(Under)

Budget

PY Actual

10/15-01/16

01/01/17-01/31/17

Administration Department 40 Expenses

5000.40 SALARIES & WAGES - ADMIN. 44,793$ 56,790$ (11,997)$ 41,269$ 184,019$ 227,160$ (43,141)$ 178,906$

5002.40 OVERTIME WAGES - ADMIN. 0 326 (326) 0 323 1,304 (981) 85

5006.40 FICA - ADMIN. 3,427 4,369 (942) 3,086 12,654 17,476 (4,822) 11,820




5098.40 WORKERS' COMPENSATION 146 143 3 124 1,012 572 440 1,379

5100.40 LEGAL SERVICES 3,000 3,583 (583) 3,000 12,000 14,332 (2,332) 12,000

5102.40 LEGAL SERVICES-SEWER ASMNTS 0 0 0 0 - - - -

5110.40 OTHER PROFESSIONAL SERVICES 0 125 (125) 0 - 500 (500) -

5120.40 ACCOUNTING/AUDITING 0 3,667 (3,667) 17,520 1,740 14,668 (12,928) 37,350

5140.40 ENGINEERING SERVICES 0 10,600 (10,600) 7,065 26,577 42,400 (15,823) 28,260

5145.40 ENGINEERING WW SRF 0 0 0 0 - - - -

5155.40 TRAVEL & TRAINING 379 2,833 (2,454) 390 2,448 11,332 (8,884) 9,784

5180.40 TELEPHONE & FAX 314 343 (29) 314 1,314 1,372 (58) 1,081

5200.40 POSTAGE & FREIGHT 2,382 3,851 (1,469) 3,022 13,471 15,404 (1,933) 11,885

5250.40 GENERAL LIABILITY INSURANCE 0 350 (350) 0 3,874 1,400 2,474 3,745

5255.40 COMP. AUTO INSURANCE 0 69 (69) 0 678 276 402 744

5260.40 OTHER INSURANCE 1,100 3,967 (2,867) 0 32,878 15,868 17,010 35,408

5282.40 REPAIRS & MAINTENANCE 0 2,693 (2,693) 300 11 10,772 (10,761) 300

5287.40 OTHER CONTRACT SERVICES 2,172 3,021 (849) 1,775 20,068 12,084 7,984 15,089

5300.40 VEHICLE FUEL 0 21 (21) 25 27 84 (57) 25

5310.40 VEHICLE MAINTENANCE 0 68 (68) 442 71 272 (201) 442

5360.40 OFFICE SUPPLIES 7 2,377 (2,370) 214 3,371 9,508 (6,137) 8,895

5380.40 MISC. OFFICE EXPENSE 3,639 3,092 547 3,350 16,727 12,368 4,359 20,427

5385.40 MISC BANK FEES 311 337 (26) 306 5,291 1,348 3,943 1,259

5386.40 MISC EXPENSE 0 64 (64) 0 - 256 (256) (2,599)

5387.40 ARROWHEAD ASSESSMENT EXPENSE 0 250 0 0 35 1,000 (965) -

5390.40 ADVERTISING 0 314 (314) 67 1,722 1,256 466 1,561

5520.40 LICENSES AND PERMITS 0 126 (126) 0 175 504 (329) 175

5605.40 MEMBERSHIPS/BOOKS 200 787 (587) 700 940 3,148 (2,208) 5,448

Total Department 40 Expenses 99,180.00$ 120,907 (21,477) 120,109 415,976 483,628 (67,652) 455,710

Page 5

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Actual Budget

Over/

(Under)

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01/16 Actual Budget

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(Under)

Budget

PY Actual

10/15-01/16

01/01/17-01/31/17

Maintenance - Department 50 Expenses

5000.50 SALARIES & WAGES - Maint. 16,541$ 29,457$ (12,916)$ 13,140$ 55,941$ 117,828$ (61,887)$ 53,230$

5002.50 OVERTIME WAGES -Maint 89 2,105 (2,016) 0 202 8,420 (8,218) 431

5006.50 FICA - Maint. 1,272 2,414 (1,142) 986 4,325 9,656 (5,331) 4,034




5098.50 WORKERS' COMPENSATION 1,401 1,641 (240) 793 7,700 6,564 1,136 4,350

5155.50 TRAVEL & TRAINING 0 1,167 (1,167) 0 - 4,668 (4,668) 2,546

5180.50 TELEPHONE & FAX 113 137 (24) 139 337 548 (211) 500

5250.50 GENERAL LIABILITY INSURANCE 0 208 (208) 0 2,282 832 1,450 2,226

5255.50 COMP AUTO INSURANCE 0 625 (625) 0 6,778 2,500 4,278 6,694

5282.50 REPAIRS & MAINTENANCE 784 1,069 (285) 1,417 10,363 4,276 6,087 2,677

5287.50 OTHER CONTRACT SERVICES 0 420 (420) 510 1,005 1,680 (675) 1,952

5300.50 VEHICLE FUEL 0 875 (875) 313 1,213 3,500 (2,287) 1,287

5310.50 VEHICLE MAINTENANCE 4,734 1,422 3,312 3,700 6,122 5,688 434 6,848

5520.50 LICENSES AND PERMITS 141 60 81 0 141 240 (99) 142

5582.50 OTHER MATERIALS 6,432 1,753 4,679 2,414 13,664 7,012 6,652 8,067

5600.50 UNIFORMS/CLOTHING ALLOWANCE 400 175 225 0 700 700 - 294

5605.50 MEMBERSHIPS/BOOKS 0 40 (40) 0 - 160 (160) 26

Total Department 50 Expenses 59,007$ 55,667$ 3,340$ 46,383$ 163,174$ 222,668$ (59,494)$ 140,656$

Salary expenses in this department, except for the supervisor, are charged to the appropriate department, depending on the maintenance project they are working on.

Other materials includes materials and supplies to set up the storage area at the maintenance department.


Miscellaneous Expenses

5121.00 MASTER PLAN EXPENSE -$ -$ -$ -$ -$ -$ -$ -$

5125.00 BAD DEBT EXPENSE 0 2,917 (2,917) 0 - 11,667 (11,667) -

5440.00 DEPRECIATION 156,833 156,833 0 151,730 627,332 627,332 0 606,909

5480.00 INTEREST EXPENSE-FHA 0 59,956 (59,956) 0 - 239,822 (239,822) -

5490.00 INTEREST EXPENSE-OTHER 0 1,483 (1,483) 0 7,771 5,932 1,839 8,598

5700.00 HURRICANE WILMA-PAYROLL 0 0 0 0 - - - -

5701.00 HURRICANE WILMA-SUPPLIES 0 0 0 0 - - - -

5702.00 HURRICANE WILMA-CONTRACT LABOR 0 0 0 0 - - - -

Total Miscellaneous Expenses 156,833$ 221,188$ (64,355)$ 151,730$ 635,103$ 884,753$ (249,649)$ 615,507$

Total Operating Expenses 665,939$ 780,098$ (113,909)$ 680,855$ 2,750,690$ 3,120,393$ (369,702)$ 2,640,626$

Net Surplus (Deficit) 174,644$ (50,461)$ 76,681$ 338,918$ (201,842)$ 434,578$

Page 6

Immokalee Water & Sewer Dist. (IWSACT)

Page 1

Detailed Balance SheetAs of: 1/31/2017

2/7/2017 4:59:52 PM

Assets

4,787.801020.00 OPERATIONS & MAINTENANC

514,221.191030.00 FCB CD-.80% 07/13

566,037.601040.00 Florida Community Bank-CD 2.2

3,100.001070.00 CASH CHANGE FUND

300.001080.00 PETTY CASH FUND

671,470.701170.00 ACCOUNTS RECEIVABLE

5,001.381182.00 A/R DEVELOPER REVIEWS

77.701185.00 A/R - EMPLOYEE MISC.

105,249.521201.00 Revenue Account

55,880.251202.00 Operations & Maintenance Acco

233,067.681205.00 Special Restricted Reserve Acc

6,237,157.911209.00 Money Market Account

2,563.171210.00 Construction Account

1,188,296.501212.00 Customer Security Deposit Acc

1,964,733.221213.00 Bond & Interest Fund Account

3,112.651214.00 Wastewater Construction Accou

2,499.991215.00 FDEP CONSTRUCTION ACCO

12,653.681216.00 FDEP-Loan Debt Servce Accou

213,412.331217.00 Assessment Account

850,075.821230.00 ASSESSMENTS RECEIVABLE

327,731.071260.00 INVENTORY-Dept 10

24,993.071265.00 INVENTORY-Dept 50

1,200.001290.00 PREPAID EXPENSES

2,563,467.311300.00 LAND

51,542.121310.00 BUILDINGS

29,664.081320.00 BUILDING IMPROVEMENTS

113,582.731325.00 COMPUTER SYSTEM

1,757,417.371330.00 GENERAL PLANT & OFFICE E

2,605,696.131350.00 DISTRIBUTION PLANT - METE

5,620,834.271370.00 DISTRIBUTION PLANT - MAIN

82,473.681380.00 EASEMENT ACQUISITION

12,354,585.281390.00 SEWER COLLECTION

1,513,321.641395.00 ARROWHEAD DISTRIBUTION

1,262,323.741400.00 ARROWHEAD WATER

1,356,470.451430.00 AUTOS & TRUCKS

220,995.991450.00 WELL & WELL FIELDS

127,549.601470.00 SERVICE CONNECTIONS

67,032.461490.00 PUMP HOUSE - STRUCTURAL

32,029.001510.00 PUMP HOUSE - MECHANICAL

590,080.771530.00 RESERVOIR & AERATOR

70,238.591560.00 ELECTRICAL

150,408.421580.00 FENCING

4,807.261600.00 TURBINE PUMPS - 4"

15,684.001610.00 TURBINE PUMPS - 6"

3,399,060.751650.00 CARSON RD WATER TREATM

399,149.481657.00 Lift Station X2 & Force Main

54,983.531658.00 Lift Station K

131,516.361661.00 Lift Station W-Force Main

68,085.001670.00 MASTER UTILITY PLAN

14,299.991680.00 UTILITY STORAGE BUILDING

115,379.021690.00 AIRPORT WELL

50,137.001691.00 Airport Addition-2010

Draft - Unaudited


Page 2


2/7/2017 4:59:52 PM

15,535.221700.00 LANDSCAPING

12,775.391710.00 CARSON ROAD WELL

10,345.001720.00 DRIVEWAYS

170,819.471730.00 WATER PLANT EXPANSION

5,743.871740.00 1,000 G.P.M. AERATOR

87,996.311760.00 WESTCLOX EXTENSION

11,650,294.911770.00 SEWER TREATMENT PLANT

51,290.051771.00 WWTP Monitoring Wells

50,500.001772.00 Clarifier Rehab Design Phase

90,770.501773.00 Sewer Rehab Design Phase 3

3,681,742.441780.00 EFFLUENT DISPOSAL

1,414,432.201796.00 PLANT EXPANSION 96

1,722,570.941797.00 PLANT EXPANSION 97

22,560.161798.00 PLANT EXPANSION 98

2,387,806.671799.00 PLANT EXPANSION

154,862.001800.00 MANHOLE SYSTEM

(31,299,477.29)1810.00 ACCUMULATED DEPRECIATI

380,069.161861.00 Various LIftstation Improvement

2,065,485.031862.00 Class A Sludge Process

59,225.001865.00 WASTEWATER PLANT EXPAN

5,351,162.761870.00 DIW PROJECT

182,956.801871.00 DIW Piping Modifications 2015

316,724.711875.00 DISINFECTION SYSTEM IMPR

169,028.011876.00 CSI-AC Main & Undersized Mai

98,367.501877.00 Master Plan Asset

3,458,342.801878.00 CSI-DEP SRF Water Stimulus P

997,269.251880.00 WWTP UPGRADE-PH-1

325,361.081890.00 WWTP UPGRADE-PH-II

27,026.001891.00 IWSD Reclaimed

(83,709.79)3250.00 ALLOWANCE FOR DOUBTFUL

Total Assets $51,388,315.40========================

Liabilities

454,798.432100.00 ACCOUNTS PAYABLE

(0.59)2200.00 WAGES PAYABLE

(454.60)2201.00 FICA TAXES PAYABLE

115,389.252203.00 VACATION TIME PAYABLE

(45,190.81)2210.00 ACCOUNTS PAYABLE - PAYR

(382.50)2350.00 INSURANCE DEDUCTIONS

54,855.442390.00 ACCRUED INTEREST - FHA

1,195,141.002400.00 CUSTOMER DEPOSITS

450,000.002600.00 BOND SERIES A

157,000.002650.00 LOAN PAYABLE - BOND SERI

264,969.002670.00 LOAN PAYABLE-FHA AIRPOR

3,109,000.002680.00 LOAN PAYABLE - SERIES 199

584,468.542726.00 LOAN PAYABLE-DEP SRF WA

2,307,000.002800.00 BOND SERIES 1989

154,000.002810.00 BOND SERIES 1990

613,000.002820.00 SERIES 1998 BONDS

1,850,000.002830.00 BOND SERIES 2001

3,077,000.002835.00 USDA BOND SERIES 2008

4,835,000.002840.00 USDA Bond 2013


Page 3


2/7/2017 4:59:52 PM

Total Liabilities $19,175,593.16

Equity

9,982,996.833000.00 CONTRIBUTED CAPITAL - FHA

2,324,845.003001.00 CONTRIBUTED CAPITAL-DEP

3,425,300.003002.00 CONTRIBUTED CAPITAL-USD

1,060,900.003003.00 Contributed Capital-Arrowhead

153,509.003005.00 AMORT OF CONTRIBUTED CA

1,268,087.753050.00 MEMBERSHIP CERTIFICATES

2,143,096.483060.00 Accumulated Maintenance Res

5,554,687.673100.00 CONTRIBUTIONS IN AID OF C

19,502.383120.00 CONTRIBUTIONS - IMPACT F

444,133.453150.00 CONTRIBUTED CAPITAL ASS

(840,000.00)3199.00 AMORT OF CUST CAPITAL

776,232.883200.00 SURPLUS - RETAINED EARNI

960,000.003210.00 Emergency Reserve

3,300,690.003220.00 Operating Reserve

259,086.003230.00 Vehicle Replacement Reserve

540,234.003240.00 Capital Equipment Reserve

Net Income / (Loss) $839,420.80

Net Worth $32,212,722.24

========================$51,388,315.40Total Liabilities and Net Worth

MEMORANDUM

IWSD Eng Report 2-8-17.docx

TO: IWSD Board February, 2017

FROM:

SUBJECT: General Engineering Report


GENERAL ENGINEERING REPORT

1.) MONTHLY FLOW SUMMARY

Water treatment plants: Max day combined water production for the three water plants last

month was 2.68 MGD, which occurred on the 18th. This volume is up from the 2.48 MGD

reported for the previous month. The combined average daily flow for last month was 2.30

MGD, which is up from the previous month’s 2.20 MGD. Shown below is a tabulation of the

average and max daily flows for each water treatment plant for last month:

FACILITY

Max DF

(MGD)

Max DF

(Date)

ADF

(MGD)

Permitted

Capacity

(MGD)

%

Capacity

for ADF

9th ST WTP 0.89 21st 0.33 2.25 14.7%

Carson Rd. WTP 1.65 10th 1.22 2.00 61.0%

Airport WTP 1.25 17th 0.74 1.39 53.2%

Total 2.68 18th 2.30 5.64 40.8%

Wastewater treatment plant max daily flow for last month was 2.17 MGD, which is down

from the previous month’s 2.35 MGD. The average daily flow for last month was 1.86 MGD,

which is down from the previous month’s 1.94 MGD. Shown below is a tabulation of the

average and max flows for the wastewater treatment plant for last month:

The annual ADF was 1.62 MGD. Rainfall recorded at the wastewater treatment plant was 0.96

inches for the month of January compared to 0.22 inches for December.

FACILITY Max DF

(MGD)

ADF

(MGD)

Permitted

Capacity

(MGD)

% Capacity

for ADF

Wastewater Treatment Plant 2.17 1.86 4.00 46.5%

Memorandum To: IWSD Board February 8, 2017

Page 2


2.) WATER TREATMENT PLANTS

The District’s New Water Use Permit was issued on May 23, 2011.

In the permit, SFWMD stipulated a monitoring period to ensure that the IWSD’s water

withdrawals do not adversely impact wetland areas.

The monitoring plan will involve annual vegetation inspections and drilling two shallow monitor

wells to periodically check ground water levels.

SFWMD also required IWSD to remove the exotic vegetation from the wetland areas for the

monitoring period of 5 years.

At the November 28th IWSD Board Meeting, the Board approved the ranking and voted to enter

into a 5-year contract with Collier Environmental Services for exotic vegetation removal.

Collier Environmental Services began work on January 30, 2013.

Boylan Environmental Consultants, Inc. submitted the Fifth Annual (Final) monitoring report to

SFWMD on September 15, 2016.

3.) WASTE WATER TREATMENT PLANT & EFFLUENT DISPOSAL

The renewed Deep Injection Well (DIW) operating permit was issued on January 14, 2015.

The WWTP permit renewal was issued by FDEP on June 22, 2016.

4.) DISTRIBUTION AND COLLECTION SYSTEMS

The USDA has approved the ER and PER for the AC and Undersized Water Main Replacement

Project.

The national USDA office has approved the project application, and IWSD, G&H and USDA

representatives met on May 11th to discuss the schedule for the project.

G&H has submitted the FDOT Right-of-Way permit application for Phase 3.

G&H is working on responses to FDOT’s request for additional information.

IWSD and G&H met with Matt McClean from Collier County on November 14th to discuss the

Right-of-Way permit fees for the project.

On November 4th, IWSD and G&H participated in a webinar presentation given by Quest

Construction Data Network to demonstrate their on-line services for bidding projects, including

electronic document distribution (via download) and maintaining a list of plan holders.

The updated anticipated schedule is as outlined below:

Completed Contract Documents submitted to USDA

Completed USDA Review

Completed Address USDA Minor Comments

Completed USDA Concurrence

Completed Bond Hearing

Completed USDA issuance of Loan Closing Instructions

Completed IWSD Certification to meet Loan Closing Stipulations

Completed USDA Authorization to Bid

March 2017 Bid Opening

April 2017 USDA Review/Approval and Contract Award

April 2017 Start of Construction

Memorandum To: IWSD Board February 8, 2017

Page 3


G&H has developed plans for improvements to Lift Station X7.

G&H reviewed quotes from contractors for improvements to Lift Station X7.

IWSD intends to award the Lift Station X7 construction contract to Quality Enterprises.

IWSD intends to purchase the pumps, guiderails, and control panel directly from the pump

supplier.

5.) STATUS OF CAPITAL IMPROVEMENT PROJECT FUNDING

G&H has developed plans and specifications for the Clarifier Rehab project as well as the Sewer

Rehab projects. FDEP has approved the plans and specifications and these projects were added

to the FDEP intended use list at the November 2014 hearing.

However, other funding sources will likely be sought for these projects instead.

Due to the magnitude of the Reclaimed Water project, the IWSD will need to go through the

RFQ process for professional services.

G&H and IWSD have updated the 5-year Capital Improvements Plan for FY2016 through

FY2021.

6.) CONSTRUCTION PROJECTS WITHIN THE IWSD SERVICE AREA

Kaicasa – We have reviewed re-submitted utility plans from Johnson Engineering and sent an

approval letter to IWSD on May 13, 2008. The water and sewer lines have been completed, but

the remainder of the project has been delayed.

First Stop Grocery – We have reviewed re-submitted utility plans from Blair A. Foley, P.E.,

LLC and the project is now under construction.

Quik Way – We have reviewed the re-submitted utility plans from Steven J. Fleming and

Associates, Inc. and are waiting for them to schedule a pre-construction meeting.

Immokalee Regional Airport Phase 2 – We have reviewed the revised plans from Grady

Minor, and are waiting for them to schedule a pre-construction meeting.

Our Lady of Guadalupe – We have reviewed the submitted plans from Spectrum Engineering

and are waiting for them to schedule a pre-construction meeting.

First Bank – We have reviewed the re-submitted plans from Deuel and Associates, and are

waiting for them to schedule a pre-construction meeting.

1

Executive Director’s Report By

Eva J. Deyo February 15, 2017 – Regular Board Meeting

Water Department During January, Jean Pierre “JP” Louis and the Water Department staff completed the following:

Productivity: - The Water Department staff installed 12 new services with backflows. They replaced 3 backflow preventers, 61 meter registers, and 14 meter antennas. They repaired 3 line and tubing breaks and 36 backflow devices. They repaired 3 valves, and raised 1 meter box.

Meter sizes and registers – We are continuing to verify the EDU’s and meter sizes, at the different locations.

Backflow Testing/Certification Project – They have been steadily working on this program, in order to complete the requirements.

Water Plant Issues –The JVW Plant needed repairs on the top. We received a quote from Crom Engineering and Construction Services (CECS), a division of Crom, LLC (the tank manufacturer). Their price was $37,713 to do the concrete repairs needed to the tank. We hired them to do the work. They took the plant off line in order to do the repairs. This work was completed and the plant was placed back on line on January 18, 2017.

Flushing - They are still working on the flushing project. It has to be done three times per year. Valve Project – JP Louis has assigned two people at a time, to take turns for two weeks, to make

sure that the water valve exercising project is also completed. They are also replacing broken valves.

SCADA System – This was installed on the three water plants. There were some problems with the system on the Carson Plant. They all seem to be working now.

The Water Department is very busy with all of the ongoing projects, trying to maintain staff, and coverage.

Vacancies – There are no vacancies in this department.

Wastewater Plant During January:

Plant Operations & Maintenance – John Short and his staff were working under mostly normal conditions for this time of year. We had problems with the clarifiers blankets went over the weirs.

FDEP Inspection – FDEP came to the WWTP for an inspection the week of October 19, 2015. We still have not received their written report.

Sprayfield – We have been using the Sprayfield as much as possible, Schwing Bioset Process – We have begun making our own fertilizer: Organi’Kalee. We are currently

using it in our own sprayfield. It didn’t run for approximately two weeks in January. Vacancies – There are no vacancies in this department.

Wastewater Collection Lift Station Maintenance – During January, Hector Ramos and his staff pulled pumps, and mowed at

the various lift stations, and around the Wastewater Plant, and the District owned property on SE 11th Street. They replaced a voltage monitor relay in Lift Station X6.

2

Sewer backup – There were sewer backups on Eustis Avenue, Kristy Lane, South 12th Street, North 19th Street, Orange Street, Lake Trafford Road and Weeks Terrace.

Smoke Testing – We smoke tested the manholes in Section H. Lift Station N Vehicle Accident – On December 2, 2016, a person ran over the control panels and

backflows to Lift Station N. We received two quotes for the emergency repair, and awarded it to the lowest bid received from MG Electrical Developers, Inc. ($10,250). We contacted the insurance company (Liberty Mutual) and they will be sending a check for $10,000 (the maximum amount of property damage coverage that their client has).We received the check from the insurance company on February 1, 2017.

Vacancies – We advertised for the vacancy left by Jacob Gallegos. His last day was January 24, 2017.

Administration During January, Oona Reyna-Rodriguez and her staff were very busy keeping up with their regular

duties and keeping the office going. File Server Upgrade - We are still trying to configure the Denali Accounting Program, and are not

able to customize reports at this time. Vocantas Interactive Voice Response Solution – IWSD is going to be implementing this system. It

will automate routine tasks and increase available time for complex requirements. It will also streamline customer service and increase customer satisfaction. It is flexible and scalable to meet our unique requirements. They will assign a toll free number 866-658-3630 to IWSD. Customers will be able to call in to make payments with checks, credit cards, etc. It uses speech recognition and is PCI compliant. It will allow for the customers to be called before their water is turned off.

Online Bill Pay – The District began accepting online bill payments on January 9, 2015. Customers can sign up to make payments, or to see their water usage history. They also have the option of getting their water bills by email. We now have over 500 customers who are signed up to access their account electronically.

Record Retention - We are continuing to work on scanning orders, and other old records, for electronic record-keeping.

I-9 Audit – Homeland Security came to audit our I-9’s and associated paperwork. They are now selecting critical infrastructure to audit. Norma Garcia had to scan and make copies of all of the documents for them to audit, for all of our current employees and for 3 years of the former employees. We are still waiting for them to return the originals.

Fiscal Year 2016 Audit – Tuscan & Company worked on their final fieldwork on the week of December 13, 2016. They are scheduled to present to the Board on February 15, 2017.


Maintenance Department During January, Derys Maldonado and his staff completed the following:

Wastewater Plant and Sprayfield: – They unclogged and cleaned the return tubes on Clarifier #1 sludge return tank. They replaced the motor on Digester #1. They unclogged the Wastewater plant grit separator. They repaired a check valve leak on RAS B. They repaired a splash guard cover, adjusted the junction electrical Box on Rotor 1A, and also tightened the belts. One shaft of Rotor 3A busted and half of the Rotor was submerged into the Ditch. They drained the ditch, replaced the shaft and put the Rotor back in place. They replaced a blown fuse on Rotor 3B. They replaced gearbox seals on Ditch #4A. They unclogged the effluent line to the Lab. They replaced the back pump cover on Bioset transfer pump. They installed new signs in the new and old admin buildings restrooms. Southwest Florida Service & Supply pulled DIW #1 for repairs.

3

Equipment: - They installed steering hydraulic cylinder in the scissor lift. They replaced a belt on the forklift. They installed a new hose and filter on the Dept 30 smoke blower chemical tank pump and cleaned the carburetor. They serviced the Thompson pump. They worked on the MX 110 Case Tractor, adjusted the shifter. They also replaced the door tint, lock, gasket and hinges. They replaced the tires on Departments 20 & 50 EZ Go golf carts. They took out JD Tractor 229 hydraulic steering cylinder & replaced front axle seals. They also replaced the exhaust pipe. They repaired Dept 50 pressure washer pump. They sanded down and sprayed rust stop on dept 50 mini-excavator trailer. They replaced the hydraulic hoses on B95 back-hoe and painted the stabilizer leg. They serviced the Bad Boy riding mower.

Vehicles: - They worked on new truck accessories and tint. Motorola came over and installed new truck radios. They installed cruise control modules on trucks 551, 552, 114, 336 & 120 and took them to Labelle Ford for cruise control computer flashing. They installed new batteries on trucks 332 & 551. They installed new strobe lights on truck 120, new back up alarm & camera.They repaired a front passenger tire on truck 220. They repaired an air leak on truck 228. They serviced truck 553. They serviced truck 556. They also installed a crane hoist seal, and installed new rear strobe lights. They adjusted door latches on truck 561.

Water Department: - They greased HSP #3 at Carson Water Plant and put back on line. They re-set JVW Water Plant PLC. They also worked on replacing the floats, because the wells would not work on automatic.

Miscellaneous: They installed Dept 40 and Dept 20 new refrigerators. They lowered the main office lobby's restroom mirror and paper towel dispenser. They installed a new Board Room a/c locking box. They helped Dept 30 on sewer backups, and pulling pumps at various lift stations.



BASIC FINANCIAL STATEMENTS

AND SUPPLEMENTARY INFORMATION

TOGETHER WITH ADDITIONAL REPORTS

YEARS ENDED

SEPTEMBER 30, 2016 AND 2015

FY '16 Verbal Comments

Maximum reserve is overfunded by approx $276K.

Revenue should be recorded when earned (Radio Fiesta cell tower only had 10 months of

revenue recorded) (w/p 600.6)

OPEN ITEMS - '16

FCADRAFT

TABLE OF CONTENTS

Page(s)

INDEPENDENT AUDITOR'S REPORT.....................................................................................................................1-4

MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)....................................................................................................................I-XI

BASIC FINANCIAL STATEMENTS

Statements of Net Position.............................................................................................................................................5

Statements of Revenues, Expenses, and Changes in Net Position..................................................................6

Statements of Cash Flows...........................................................................................................................7

Notes to the Financial Statements..............................................................................................................8-32

REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A

Schedule of Revenues, Expenses and Changes in Net Position - Budget

(Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP

Basis - Year Ended September 30, 2016...............................................................................................................................................33-38

ADDITIONAL REPORTS

Independent Auditor's Report on Internal Control Over

Financial Reporting and on Compliance and Other Matters

Based on an Audit of Basic Financial Statements Performed

in Accordance with Government Auditing Standards………………………………………………….39-40

Independent Accountant's Report on Compliance with

Section 218.415, Florida Statutes………………………………………………………………………………….………………….41

Independent Auditor's Report to Management………………………………………………….…………………42-44

Management's Response to the Independent Auditor's Report to Management………………………………….Exhibit

DRAFT

INDEPENDENT AUDITOR’S REPORT

Board of Commissioners


1020 Sanitation Road

Immokalee, Florida 34142

Report on the Financial Statements

We have audited the accompanying basic financial statements of the business-type activities of

Immokalee Water & Sewer District (an independent special district) ( the "District") as of and for

the years ended September 30, 2016 and 2015, and the related notes to the financial statements,

which collectively comprise the District's basic financial statements as listed in the table of

contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this

includes the design, implementation, and maintenance of internal control relevant to the preparation

and fair presentation of financial statements that are free from material misstatement, whether due

to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We

conducted our audits in accordance with auditing standards generally accepted in the United States

of America and the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States of America. Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether the

financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor's

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those 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,

DRAFT



Page 2

we express no such opinion. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of significant accounting estimates made by management, as

well as evaluating overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the business-type activities of Immokalee Water & Sewer District

as of September 30, 2016 and 2015, and the respective changes in financial position and cash

flows thereof, for the years then ended in accordance with accounting principles generally

accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the

management's discussion and analysis on pages I - XI be presented to supplement the basic

financial statements. Such information, although not a part of the basic financial statements, is

required by the Governmental Accounting Standards Board 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 - management's discussion and analysis (MD&A) in accordance with

auditing standards generally accepted in the United States of America, which consisted of inquiries

of management about the methods of preparing the information and comparing the information for

consistency with management's responses to our inquiries, the basic financial statements, and other

knowledge we obtained during our audit of the basic financial statements. We do not express an

opinion or provide any assurance on the required supplementary information - management's

discussion and analysis (MD&A) because the limited procedures do not provide us with sufficient

evidence to express an opinion or provide any assurance.

DRAFT



Page 3

Other Required Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that

collectively comprise Immokalee Water & Sewer District's basic financial statements. The required

supplementary information other than MD&A - budgetary comparison information - Schedule of

Revenues, Expenses and Changes in Net Position - Budget (Non-GAAP Budgetary Basis) and

Actual with Reconciliation to GAAP Basis - year ended September 30, 2016 is presented for

purposes of additional analysis and is not a required part of the basic financial statements. The

required supplementary information other than MD&A - budgetary comparison information -

Schedule of Revenues, Expenses and Changes in Net Position - Budget (Non-GAAP Budgetary

Basis) and Actual with Reconciliation to GAAP Basis - year ended September 30, 2016 is the

responsibility of management and was derived from and relates directly to the underlying accounting

and other records used to prepare the basic financial statements. Such information has been

subjected to the auditing procedures applied in the audit of the basic financial statements and certain

additional procedures, including comparing and reconciling such information directly to the underlying

accounting and other records used to prepare the basic financial statements or to the basic financial

statements themselves, and other additional procedures in accordance with auditing standards

generally accepted in the United States of America. In our opinion, the required supplementary

information other than MD&A budgetary comparison information - Schedule of Revenues, Expenses

and Changes in Net Position - Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation

to GAAP Basis - year ended September 30, 2016 is fairly stated, in all material respects, in relation

to the basic financial statements as a whole.

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that

collectively comprise the District's basic financial statements. The Exhibit - Management's

Response to Independent Auditor's Report to Management is not a required part of the basic

financial statements but is required by Government Auditing Standards. Such information has not

been subjected to the auditing procedures applied in the audit of the basic financial statements, and

accordingly, we do not express an opinion or provide any assurance on it.

DRAFT



Page 4

Other Reporting Required by Section 218.415, Florida Statutes

In accordance with Section 218.415, Florida Statutes, we have also issued a report dated January 16,

2017, on our consideration of Immokalee Water & Sewer District's compliance with provisions of

Section 218.415, Florida Statutes. The purpose of that report is to describe the scope of our testing

of compliance and the results of that testing, and to provide an opinion on compliance with the

aforementioned Statute. That report is an integral part of an audit performed in accordance with

Sections 218.39 and 218.415, Florida Statutes in considering Immokalee Water & Sewer District's

compliance with Section 218.415, Florida Statutes.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated January

16, 2017 on our consideration of the District's internal control over financial reporting and on our

tests of its compliance with certain provisions of laws, regulations, contract and grant agreements

and other matters. The purpose of that report is to describe the scope of our testing of internal

control over financial reporting and compliance and the results of that testing, and not to provide an

opinion on internal control over financial reporting or on compliance. That report is an integral part

of an audit performed in accordance with Government Auditing Standards in considering the

District's internal control over financial reporting and compliance.

TUSCAN & COMPANY, P.A.

Fort Myers, Florida

January 16, 2017

DRAFT

MANAGEMENT'S DISCUSSION

AND ANALYSIS

(MD&A)

DRAFT


STATEMENTS OF NET POSITION

September 30, 2016 and 2015

2016 2015

ASSETS

CURRENT ASSETS

Cash 6,553,891$ 5,735,710$

Investment 1,075,700 1,062,152

Accounts receivable, net 525,068 510,580

Other receivables 5,079 6,311

Inventory 382,964 297,906

Prepaid expenses 50,406 44,068

TOTAL CURRENT ASSETS 8,593,108 7,656,727

RESTRICTED ASSETS

Cash 3,105,915 2,939,447

Grant and assessment receivables 901,754 954,803

TOTAL RESTRICTED ASSETS 4,007,669 3,894,250

CAPITAL ASSETS

Capital assets not being depreciated:

Land 2,645,941 2,645,941 Construction in progress 484,882 283,183

Capital assets being depreciated: Buildings and improvements 1,509,938 1,509,938 Water and wastewater plants and systems 61,902,278 61,321,071 Machinery and equipment 3,201,123 2,932,654 Less:

Accumulated depreciation (31,169,271) (29,337,127)

38,574,891 39,355,660

TOTAL ASSETS 51,175,668$ 50,906,637$

The accompanying notes are an integral part of this statement.

DRAFT

of 44

2016 2015

LIABILITIES AND NET POSITION

CURRENT LIABILITIES

Accounts and contracts payable 465,142$ 316,320$

Other accrued expenses 104,688 77,461

TOTAL CURRENT LIABILITIES 569,830 393,781

CURRENT LIABILITIES (Payable from Restricted Assets)

Revenue bonds payable, current portion 538,000 513,000

Loans payable - SRF, current portion 33,267 32,423

Accrued revenue bond interest 54,855 56,918

Retainage payable - -

Customer deposits 1,159,843 1,078,082

TOTAL CURRENT LIABILITIES

(Payable from Restricted Assets) 1,785,965 1,680,423

LONG-TERM LIABILITIES

Revenue bonds payable, net of current portion 16,278,969 16,816,969

Loans payable - SRF, net of current portion 567,728 600,996

Accrued compensated absences 115,389 100,557

TOTAL LONG-TERM LIABILITIES 16,962,086 17,518,522

TOTAL LIABILITIES 19,317,881 19,592,726

NET POSITION

Net investment in capital assets 21,156,927 21,392,272

Restricted 2,221,704 2,213,827

Unrestricted 8,479,156 7,707,812

TOTAL NET POSITION 31,857,787 31,313,911

TOTAL LIABILITIES AND NET POSITION 51,175,668$ 50,906,637$

DRAFT

IMMOKALEE WATER & SEWER DISTRICT Page 6 of 44

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

Years ended September 30, 2016 and 2015

2016 2015

OPERATING REVENUES

Cross connection control fee 305,285$ 296,521$

Water service 2,769,676 2,723,616

Wastewater service 4,755,135 4,689,555

Meter service charge 599,235 585,006

Late fees 87,850 84,190

Reconnect and transfer fees 103,780 103,275

Miscellaneous charges, fees and other income 64,263 55,613

TOTAL OPERATING REVENUES 8,685,224 8,537,776

OPERATING EXPENSES

Water treatment and distribution 1,609,111 1,634,913

Wastewater treatment 1,664,779 1,529,244

Wastewater collection 818,494 653,469

Customer service and administrative 1,226,687 1,058,560

Maintenance 416,892 346,322

TOTAL OPERATING EXPENSES

PRIOR TO DEPRECIATION 5,735,963 5,222,508

Depreciation 1,832,144 1,737,470

TOTAL OPERATING EXPENSES 7,568,107 6,959,978

OPERATING PROFIT (LOSS) 1,117,117 1,577,798

NON-OPERATING REVENUES (EXPENSES)

Interest income 54,869 47,692

Gain (loss) on disposal of fixed assets 13,072 (1,914)

Interest expense (730,557) (754,245)

Bad debt expense adjustment 10,042 (31,249)

Other income 35,274 42,444

NET NON-OPERATING EXPENSES (617,300) (697,272)

PROFIT (LOSS) BEFORE CAPITAL

CONTRIBUTIONS 499,817 880,526

CAPITAL CONTRIBUTIONS

USDA - grants - 380,506

Customers 44,059 505,077

Developers - -

TOTAL CAPITAL CONTRIBUTIONS 44,059 885,583

INCREASE (DECREASE) IN NET POSITION 543,876 1,766,109

NET POSITION - Beginning of the year 31,313,911 29,547,802

NET POSITION - End of the year 31,857,787$ 31,313,911$


DRAFT


STATEMENTS OF CASH FLOWS

Years ended September 30, 2016 and 2015

2016 2015

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 8,763,771$ 8,524,116$

Cash payments to suppliers and employees (5,636,478) (5,279,604)

NET CASH PROVIDED BY OPERATING ACTIVITIES 3,127,293 3,244,512

CASH FLOWS FROM NONCAPITAL FINANCING:

Other income received 35,274 42,444

NET CASH PROVIDED BY NONCAPITAL FINANCING 35,274 42,444

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (1,051,375) (1,518,085)

Proceeds from sale of capital assets 13,072 -

Principal paid on revenue bonds (513,000) (488,000)

Principal paid on LOC - -

Principal paid on loans - SRF (32,424) (31,601)

Interest paid on bonds and other obligations (732,620) (756,046)

Proceeds from Series 2013 Bond - -

Capital contributions - USDA - 380,506

Membership/customer/developer connection fees/assessment 97,108 558,126

NET CASH PROVIDED BY (USED IN) CAPITAL

AND RELATED FINANCING ACTIVITIES (2,219,239) (1,855,100) .

CASH FLOWS FROM (USED IN)

INVESTING ACTIVITIES:

Interest earned on investments 41,321 34,372

Purchase of certificate of deposit - -

NET CASH PROVIDED BY (USED IN)

INVESTING ACTIVITIES 41,321 34,372

NET INCREASE (DECREASE) IN

CASH AND CASH EQUIVALENTS 984,649 1,466,228

CASH AND CASH EQUIVALENTS-

BEGINNING OF YEAR 8,675,157 7,208,929

CASH AND CASH EQUIVALENTS-

END OF YEAR 9,659,806$ 8,675,157$


DRAFT

of 44

2016 2015

RECONCILIATION OF OPERATING PROFIT TO

NET CASH PROVIDED BY OPERATING ACTIVITIES:

OPERATING PROFIT (LOSS) 1,117,117$ 1,577,798$

Adjustments to reconcile operating profit to

net cash provided by operating activities:

Depreciation (non cash) 1,832,144 1,737,470

Increase (decrease) in accrued compensated absences (non cash) 14,832 9,995

(Increase) decrease in accounts receivable, net (4,446) (81,004)

(Increase) decrease in other receivables 1,232 18,042

(Increase) decrease in inventory (85,058) 52,969

(Increase) decrease in prepaid expenses (6,338) (2,910)

Increase (decrease) in accounts payable 148,822 (134,567)

Increase (decrease) in contracts payable - -

Increase (decrease) in other accrued expenses 27,227 17,417

Increase (decrease) in customer deposits 81,761 49,302

TOTAL ADJUSTMENTS 2,010,176 1,666,714

NET CASH PROVIDED BY

OPERATING ACTIVITIES 3,127,293$ 3,244,512$

DRAFT


NOTES TO THE FINANCIAL STATEMENTS


NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES

Organization

Immokalee Water & Sewer District (the "District") was created by Laws of Florida,

(Section) Chapter 78-494 on July 15, 1978, under the provisions of Florida Statute,

Chapter 153.53 for the purpose of providing water and sewer services to

Immokalee, an unincorporated area of eastern Collier County, Florida. The District's

enabling legislation was repealed, updated, reenacted, and codified by Laws of

Florida, Chapter 98-495 on May 28, 1998. On July 1, 2005, Laws of Florida,

Chapter 2005-298 amended Laws of Florida, Chapter 98-495 by expanding the

District's boundaries. On June 10, 2015, Laws of Florida, Chapter 2015-205

amended Laws of Florida, Chapter 98-495 to provide for salaries/honorariums for

elected District Board members up to $250 each per month.

The District owns, operates, maintains and regulates its water and sewer plants and

systems as an independent special district of the State of Florida. The District is

governed by a seven (7) member Board of Commissioners appointed by the

Governor of the State of Florida. The Board of Commissioners (the "Board")

administer the District, independent from any other local governing body and serve

staggered four (4) year terms.

Reporting Entity

Immokalee Water & Sewer District is financially independent of all other units of

government. It is responsible for financing its own activities and the payment of its

own debt. The Board of Commissioners (the "Board") has the responsibility to

employ management that is responsible for the day-to-day operations of the District.

The Board has absolute authority over all funds included in the entity. Immokalee

Water & Sewer District is not a component unit of any other governmental unit.

The District adheres to Statement of Governmental Accounting Standards Board

(GASB) Statement Number 14, "Financial Reporting Entity", as amended by GASB

Statement Number 39, "Determining Whether Certain Organizations Are Component

Units" and GASB Statement Number 61, "The Financial Reporting Entity: Omnibus -

An Amendment of GASB Statements No. 14 and No. 34". These Statements

require the financial statements of the District (the primary government) to include its

component units, if any. A component unit is a legally separate agency for which the

DRAFT





POLICIES, CONTINUED

Reporting Entity, continued

primary government is financially accountable or organizations whose exclusion would

cause the financial statements to be misleading because of the nature and significance

of their relationship with the primary government. Financial accountability is

determined by the primary government's ability to appoint the voting majority of the

entity's board, impose its will on the organization, the existence of a financial

benefit/burden relationship or fiscal dependency. Based on this criteria, there are no

component units included or required to be included in the District's financial

statements.

The Immokalee Water & Sewer District adheres to the requirements of

Governmental Accounting Standards Statement Number 33 "Accounting and

Financial Reporting for Non-Exchange Transactions." As such, grant revenue is

recorded as non-operating revenue and is reflected on the Statements of Revenues,

Expenses and Changes in Net Position.

The following is a summary of the significant accounting polices used in the

preparation of these financial statements:

The District adheres to the requirements of Governmental Accounting Standards

Board Statement Number 34, "Basic Financial Statement and Management's

Discussion and Analysis for State and Local Governments" (GASB 34). The

government-wide financial statements along with the notes to the financial statements

and the RSI, as noted below comprise the basic financial statements.

The basic financial statements of the District are comprised of the following:

- Government-wide financial statements

- Notes to the financial statements

- Required supplementary information other than MD&A

DRAFT





POLICIES, CONTINUED

Government-Wide Financial Statements

The government-wide financial statements (i.e., the Statement of Net Position and the

Statement of Revenues, Expenses and Changes in Net Position) report information

on all of the activities of the District and do not emphasize fund types. These

business-type activities comprise the primary government. Business-type activities

rely on user fees and charges to support its activities rather than taxes and

intergovernmental revenues. The purpose of the government-wide financial

statements is to allow the user to be able to determine if the District is in a better or

worse financial position than the prior year. The District uses only one fund.

Government-wide financial statements are reported using the economic resources

measurement focus and the accrual basis of accounting. Under the accrual basis of

accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from

exchange and exchange-like transactions are recognized when the exchange takes

place. Revenues, expenses, gains, losses, assets, and liabilities resulting from

nonexchange transactions are recognized in accordance with the requirements of

GASB Statement 33-"Accounting and Financial Reporting for Nonexchange

Transactions."

Amounts paid to acquire capital assets are capitalized as assets in the

government-wide financial statements, rather than reported as expenditures.

Proceeds of long-term debt are recorded as liabilities in the government-wide

financial statements, rather than as other financing sources. Amounts paid to reduce

long-term indebtedness of the reporting government are reported as a reduction of

the related liability in the government-wide financial statements, rather than as

expenditures.

The Statement of Revenues, Expenses and Changes in Net Position demonstrates the

degree to which the direct expenses of a given function are offset by program

revenues. Direct expenses are those that are clearly identifiable with a specific

function or segment. Program revenues include: 1) charges to customers or

applicants who purchase, use or directly benefit for goods, services, or privileges

provided by a given function and 2) grants and contributions that are restricted to

meeting the operational or capital improvements of a particular function.

DRAFT





POLICIES, CONTINUED

Government-Wide Financial Statements, continued

Operating revenues are considered to be revenues generated by services performed

and/or by fees charged such as water and sewer usage, connection, inspection fees

and flow testing.

Budgetary Information

As required, the District uses only one fund to account for its activities and, therefore,

it is considered a major fund. The District has elected to report budgetary

comparison of its major fund as required supplementary information (RSI).

Fund Accounting

The District's financial practices are based upon fund accounting concepts. A fund is

defined as a fiscal and accounting entity with a self-balancing set of accounts,

recording cash and other financial resources, together with all related liabilities and net

assets (fund equity balances) and changes therein.

The accompanying financial statements reflect Business - Type Activities and are

classified as a single Proprietary Fund Type - Enterprise fund. This fund accounts

for the cost of services provided by the District as well as the revenues earned by the

District.

Business - Type Activities - Proprietary Fund Type

Enterprise Fund - An enterprise fund is used to account for operations (1) that are

financed and operated in a manner similar to private business enterprises where the

intent of the governing body is that the costs (expenses, including depreciation) of

providing goods or services to the general public on a continuing basis be financed or

recovered primarily through user charges; or (2) where the governing body has

decided that periodic determination of revenues earned, expenses incurred, and/or

net income is appropriate for capital maintenance, public policy, management control,

accountability, or other purposes.

DRAFT





POLICIES, CONTINUED

Measurement Focus

Proprietary funds are accounted for on a flow of economic resources measurement

focus. With this measurement focus, assets and liabilities associated with the

operation of these funds are included on the balance sheet. Proprietary fund-type

operating statements present increases (i.e. revenues) and decreases (i.e. expenses)

in total net position. Operating revenues and expenses result from providing water

distribution as well as wastewater collection and treatment to members within the

District's boundaries. Generally, other revenues and expenses are treated as

non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the

District's policy to use restricted resources first, then unrestricted resources as they

are needed.

Basis of Accounting

The proprietary fund type is presented on the accrual basis of accounting. Under the

accrual basis of accounting, revenues are recorded in the period earned and expenses

are recorded in the period the liability is incurred.

Budgetary Process

The District operates under a fixed budget for control purposes. The budget and

amendments, if any, are approved by the Board of Commissioners. The budget is

prepared on a Non-GAAP accrual basis, whereby items such as capital expenditures

and debt principal payments are budgeted as expenses.

The annual budget serves as the legal authorization for expenditures. Expenditures

cannot legally exceed the total amount budgeted. All budget amendments, which

change the legally adopted total appropriation, are approved by the Board.

The District follows these procedures in establishing budgetary data.

1. During the summer of each year, management submits to the Board of

Commissioners a proposed operating budget for the fiscal year commencing on

October 1. The operating budget includes proposed expenditures and the means

of financing them.

DRAFT





POLICIES, CONTINUED

Budgetary Process, continued

2. Public hearings are conducted to obtain citizen comments.

3. The budget is adopted by approval of the Board of Commissioners.

4. Budget amounts, as shown in these financial statements, are as originally adopted

or as amended by the Board of Commissioners.

5. The budget is adopted on a basis consistent with accounting principles generally

accepted in the United States of America, except as reflected in the

supplementary information and as noted above.

6. The level of control for appropriations is exercised at the fund level.

7. Appropriations lapse at year-end.

The Board of Commissioners did amend the budget during the fiscal year ended

September 30, 2016 to increase total budgeted net revenue by $225,636 and an

increase in budgeted expenses (including net non-operating revenue and expense) by

$225,636.

Cash

For the purpose of the Statements of Cash Flows, the District considers all highly

liquid investments, including both unrestricted and restricted, with a maturity of three

months or less, when purchased, to be a cash equivalent, in accordance with District

policy.

Accounts Receivable/Allowance for Doubtful Accounts

Receivables include user fees for water and wastewater services provided as part of

the operations by the District. The accounts receivable are recorded net of the

estimated allowance for doubtful accounts. The District operates using an allowance

and collection policy that ultimately provides for discontinuance of water service due

to nonpayment by the user. The policy also provides for application of the respective

user's security deposit upon certain criteria. Additionally, the policy requires a user

landlord to satisfy any outstanding user fees (tenant) prior to allowing services to a

future tenant for that landlord.

DRAFT





POLICIES, CONTINUED

Inventory

Inventory consists of utility system parts and hardware supplies at year end. The

inventories are valued at cost, which approximates market. The method used to

determine the value of the inventory is the FIFO (first in-first out) method.

Capital Assets and Depreciation

Capital assets acquired by proprietary funds are reported in those funds at historical

cost or estimated historical cost if actual historical cost is not available.

Donated assets are reported at estimated fair market value at the time received.

Certain infrastructure-type fixed assets consisting of certain improvements such as

roads, curbs, gutters and lighting systems have not been capitalized, as the District

does not generally incur such expenditures. However, the systems' distribution and

collection lines and pumps are capitalized and depreciated as part of the overall

system. Assets acquired with a cost or fair value of $1,000 or more and a useful life

of 1 year or more are capitalized. Maintenance, repairs and minor renovations are

not capitalized. The acquisition of land and construction projects utilizing resources

received from Federal and State agencies are capitalized when the related

expenditure is incurred.

The capital assets are depreciated using the straight-line method of depreciation over

the following estimated useful lives:

Asset Years

Buildings/Plant and Plant Equipment 10-40

Capital Improvements, Distribution Lines 5-40

Furniture, Fixtures and Equipment 3-20

Vehicles 3-7

Restricted Assets

These monies are restricted by the applicable debt covenants and grant agreements or

as customer deposits.

DRAFT





POLICIES, CONTINUED

Vacation Leave and Other Compensated Absences

Accumulated unpaid vacation pay is accrued when incurred in the proprietary fund.

The method of accrual is in accordance with Statement of Governmental Accounting

Standards Board Number 16, "Accounting for Compensated Absences" (GASB

16). This Standard provides for the measurement of accrued vacation leave and

other compensated absences using the pay or salary rates in effect at the balance

sheet date. It also requires additional amounts to be accrued for certain salary

related payments associated with the payment of compensated absences such as

FICA and retirement benefits only, vacation is accrued and paid at termination.

Encumbrances

Encumbrance accounting, under which purchase orders, contracts and other

commitments for the expenditure of monies are recorded in order to reserve that

portion of the applicable appropriation, is not employed by the District because at

present it is not considered necessary to assure budgetary control or to facilitate

effective cash planning and control.

Membership (Connection) Fees

Water (connection) service installation fees are dedicated for the system expansion

and are treated as contributed capital but recognized as revenue when received (due

to the District) by the District.

Income Taxes

The District, as a governmental unit, is exempt from income taxes under current

provisions of the Internal Revenue Code and Florida State Law.

Fund Equity

Grants, entitlements or shared revenues which are externally restricted for capital

acquisition or construction are treated as contributed capital but recorded as revenue

when due to the District. Contributed or donated fixed assets are also treated as

contributed capital but recorded as revenue when due the District. Reserved retained

earnings represent those portions of fund equity legally restricted by debt covenants

for current and future debt service.

DRAFT





POLICIES, CONTINUED

Use of Estimates

The preparation of basic financial statements in conformity with accounting principles

generally accepted in the United States of America requires management to make

estimates and assumptions that affect the reported amounts of assets, liabilities and

disclosure of contingent assets and liabilities at the date of the financial statements and

the reported amounts of revenues and expenses during the reporting period. Actual

results could differ from those estimates.

Reclassifications

Certain amounts in the financial statements have been reclassified to conform with the

current year presentation. These reclassifications had no effect on the results of

operations or net assets.

Subsequent Events

Subsequent events have been evaluated through January 16, 2017, which is the date

the basic financial statements were available to be issued.

Application of FASB Pronouncements to Proprietary Funds

In accordance with Governmental Accounting Standards Board (GASB) Statement

20, "Accounting and Financial Reporting for Proprietary Funds and Other

Governmental Entities That Use Proprietary Fund Accounting", the District has

elected not to apply those FASB Statements and Interpretations issued after

November 30, 1989. Only GASB pronouncements issued after this date will be

adopted by the District.

Accounting Pronouncement GASB No. 42

The District adheres to Government Accounting Standards Board Statement Number

42, "Accounting and Financial Reporting for Impairment of Capital Assets and for

Insurance Recoveries" (GASB 42). GASB 42 establishes accounting and financial

reporting standards for impairment of capital assets.

DRAFT





POLICIES, CONTINUED

Accounting Pronouncement GASB No. 42, continued

A capital asset is considered impaired when its service utility has declined significantly

and unexpectedly. Governments are required to evaluate prominent events or

changes in circumstances affecting capital assets to determine whether impairment of

a capital asset has occurred. Such events or changes in circumstances that may be

indicative of impairment include evidence of physical damage, enactment or approval

of laws or regulations or other changes in environmental factors, technological

changes or evidence of obsolescence, changes in the manner or duration of a capital

asset, and construction stoppage. A capital asset generally should be considered

impaired if both (a) the decline in service utility of the capital asset is large in

magnitude and (b) the event or change in circumstance is outside the normal life cycle

of the capital asset.

The District incurred no capital asset impairment activity for the years ended

September 30, 2016 or 2015.

NOTE B - CASH AND INVESTMENTS

At September 30, 2016 and 2015, cash and cash equivalents (including both

restricted and unrestricted cash and cash equivalents) were $9,659,806 and

$8,675,157 respectively, including unrestricted cash on hand of $3,400 and $3,400,

respectively.

Deposits

The District's deposit policy allows deposits to be held in demand deposits, savings

accounts, certificates of deposit, direct obligations of the U.S. Treasury, Local

Government Surplus Trust Funds, direct obligations of Federal agencies and

instrumentalities and money market accounts. All cash deposits are held in qualified

public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for

Public Deposits Act."

DRAFT




NOTE B - CASH AND INVESTMENTS, CONTINUED

Deposits, continued

Insured/ Bank CarryingCollateralized Balance Amount

September 30, 2016

Unrestricted

Depository accounts 298,907$ 298,907$ 199,440$ Money market 6,351,051 6,351,051 6,351,051

6,649,958 6,649,958 6,550,491

Restricted

Depository accounts 1,176,589 1,176,589 1,176,589 Money market 1,929,326 1,929,326 1,929,326

3,105,915 3,105,915 3,105,915

9,755,873$ 9,755,873$ 9,656,406$

September 30, 2015

Unrestricted

Depository accounts 273,330$ 273,330$ 287,290$

Money market 5,445,020 5,445,020 5,445,020

5,718,350 5,718,350 5,732,310

Restricted

Depository accounts 1,101,066 1,101,066 1,101,066

Money market 1,838,381 1,838,381 1,838,381

2,939,447 2,939,447 2,939,447

8,657,797$ 8,657,797$ 8,671,757$

Unrestricted and Restricted Deposits

The District's deposits were categorized to give an indication of the level of risk

assumed by the District at year-end. All deposits were fully insured by Federal

Depository Insurance or collateral pursuant to the Public Depository Act (Florida

Statute 280). As such, the District resolved to abide by Florida Statute 218.415(17).

DRAFT




NOTE B - CASH AND INVESTMENTS, CONTINUED

Restricted Deposits

Restricted deposits are required by the District's outstanding debt agreements as well

as grant and other agreements. Restricted deposits also include customer deposits.

Restricted deposits (carrying amounts) consist of the following at September 30:

2016 2015

Construction account 8,168$ 8,139$

Bond sinking fund reserve 1,529,549 1,494,259

Department of Environmental Protection-

Deep Well Injection Reserve 232,676 231,515

Customer deposits 1,153,359 1,077,913

Loan debt service 20,729 20,653

Special assessment collections 161,434 106,968

3,105,915$ 2,939,447$

Investments

Florida Statutes and the District's investment policy authorize investments in

certificates of deposit (CD's). Certificates of deposit whose values exceed the

amount of the federal depository insurance are collateralized pursuant to the Public

Depository Security Act of the State of Florida. The District had $1,075,700 and

$1,062,152 (bank and book balance) invested in certificates of deposit at September

30, 2016 and 2015, respectively. The CDs carried interest rates of 1.69% and

.8% at September 30, 2016. The CDs mature on December 4, 2017 and July

12, 2017, respectively.

NOTE C - ACCOUNTS RECEIVABLE

Accounts receivable consist of the following at September 30:

2016 2015

Customer receivables (water/sewer) 608,778$ 604,332$

Less allowance for doubtful accounts (83,710) (93,752)

Net receivables 525,068$ 510,580$

DRAFT




NOTE D - GRANT AND ASSESSMENT RECEIVABLES

Grant and assessment receivables consisted of the following at September 30:

2016 2015

Special Assessment 901,754 954,803

901,754$ 954,803$

The District levied a special assessment of $1,060,900 on system users benefitting

from the system improvements funded by the $4,932,000 Series 2013 Revenue

Bonds during the year ended September 30, 2014. The assessment collections are

restricted to principal reduction of the Series 2013 Revenue Bonds. The assessment

was initially levied through the Collier County Tax Collector on November 1, 2013.

The assessment is a one time assessment payable in full or over 20 years by the

affected system users. The special assessment had the following activity for the years

ended September 30:

2016 2015

Balance, October 1 954,803$ 1,007,852$

Assessment levied - -

Collections (53,049) (53,049)

901,754$ 954,803$

DRAFT




NOTE E - CAPITAL ASSET ACTIVITY

The following is a summary of changes in capital asset activity for the year ended

September 30, 2016:

Balance Balance

October 1 Adjustments/ September 30

2015 Additions Retirements Reclassifications 2016

Capital Assets Not

Being Depreciated:

Land 2,645,941$ -$ -$ -$ 2,645,941$

Construction in Progress 283,183 218,218 - (16,519) 484,882

Total Capital Assets Not

Being Depreciated 2,929,124 218,218 - (16,519) 3,130,823

Capital Assets

Being Depreciated:

Buildings & Improvements 1,509,938 - - - 1,509,938

Water and Wastewater

Plant and Systems 61,321,071 564,688 - 16,519 61,902,278

Machinery & Equipment 2,932,654 268,469 - - 3,201,123

Total Capital Assets

Being Depreciated 65,763,663 833,157 - 16,519 66,613,339

Less Accumulated

Depreciation:

Buildings & Improvements (727,957) (37,692) - - (765,649)

Plant and Systems (26,144,439) (1,406,645) - - (27,551,084)

Machinery & Equipment (2,464,731) (387,807) - - (2,852,538)

Total Accumulated Depreciation (29,337,127) (1,832,144) - - (31,169,271)

Capital Assets, Net 39,355,660$ (780,769)$ -$ -$ 38,574,891

Related debt (17,417,964)

Net investment in capital assets 21,156,927$

DRAFT




NOTE E - CAPITAL ASSET ACTIVITY, CONTINUED

The depreciation expense for the years ended September 30, 2016 and 2015 was

$1,832,144 and $1,737,470 respectively. During the years ended September 30,

2016 and 2015, the District continued construction on its system-wide

improvements. The District capitalized interest on the project in the amount of $0

and $0 for the years ended September 30, 2016 and 2015.

NOTE F - RETIREMENT PLANS

Plan Description and Provisions

Section 401(a) Plan

The District historically offered all its employees the opportunity to participate in an

individual government employer-sponsored defined contribution 414(h) Money

Purchase Pick-Up Retirement Plan and Trust (the "Plan"). Effective January 1, 2009,

the District restated its retirement plan. As such, the restated plan qualifies as a

401(a) Money Purchase defined contribution plan. The Plan is administered by a

third party administrator. The employer funds substantially all the administrative costs

of the Plan.

The Plan allows all employees to participate after three (3) months creditable

employment. Employees who elect to participate must contribute three (3%) percent

of their gross wages excluding overtime compensation up to $3,000. If the employee

desires to defer more than $3,000 they can defer those amounts into the IRC Section

457 Plan. The employer is required to contribute six (6%) percent of the respective

participating employee's gross wages excluding overtime compensation. Employer

contributions are only required for those participating employees who contribute three

(3%) of their gross wages, as defined. During the years ended September 30, 2016,

2015, and 2014, the District contributed 100% of its required contributions.

The District's gross contributions (employer portion) to the plan for the years ended

September 30, 2016, 2015 and 2014 were $131,368, $118,336, and $110,052,

respectively. Employee contributions to the plan were $61,985, $58,312 and

$53,527, respectively for the years ended September 30, 2016, 2015, and 2014,

respectively.

Benefits available are limited to the value of the respective employee's individual

account. Individuals direct the investment of their individual account. Benefits vest at

a rate of twenty (20%) percent per year of creditable service and vest in full after five

DRAFT




NOTE F - RETIREMENT PLANS, CONTINUED

Plan Description and Provisions, continued

years of creditable service. A creditable year of service is defined as a year in which

an eligible participant completes 1,000 hours of service. Employees immediately vest

in their contributions. Normal retirement shall be considered to be attainment of age

55 and completion of five (5) creditable years of service. Employees who fail to

complete five (5) years creditable service vest in their respective accounts at twenty

(20%) percent per completed year of creditable service. The Plan requires

retirement at April 1 following the date the participant reaches age 70 1/2. The Plan

provides that forfeitures of employer contributions by non-vested terminated

employees are to be used to offset future employer contributions. Therefore,

employer contributions made to employee accounts who fail to complete the

respective year revert back to the employer. The District has no liability for losses, if

any, incurred by the plan. Loans to participants are permitted from the participant's

specific account. Participants should refer to the complete plan document for

specific detail of the Plan.

Section 457 Plan

Effective November 1, 2012, the District approved a resolution to establish a

Deferred Compensation Plan to be made available to all eligible District employees

pursuant to Section 457 of the Internal Revenue Code (IRC). The Plan is

administered by a third party administrator. The employer funds substantially all

administrative costs of the plan. All contributions made to the plan are voluntary

deductions from employees' wages, with no contributions to the plan made by the

District. Employees are eligible to participate after 3 months employment and

attainment of age 18. Deferral amounts are limited per IRS Code Section

457(e)(15). For the year ended September 30, 2016 the limit was $18,000.

Employees are immediately vested in their salary deferral amounts.

NOTE G - REVENUE BONDS PAYABLE

The following is a summary of the District's revenue bonds payable for the years

ended September 30:

Amount

Balances - September 30, 2014 17,817,969$

Principal retired (488,000)

Bonds issued -

Balances - September 30, 2015 17,329,969

Principal retired (513,000)

Bonds issued -

Balances - September 30, 2016 16,816,969$

DRAFT




NOTE G - REVENUE BONDS PAYABLE, CONTINUED

Revenue Bonds payable is comprised of the following at September 30:

2016 2015

$5,300,000 Series A, Water and Sewer

Revenue Bonds, issued July 1981, through

USDA Rural Development. Principal is payable

annually beginning September 1, 1983 through

September 1, 2020; interest payable annually at

the rate of 5%; collateralized by the gross

operating revenues of the system and

assessments levied on the lands benefited by the

system. 450,000$ 550,000$

$722,715 Series B, Water and Sewer Revenue

Bonds, issued July 1981, through USDA Rural

Development. Principal is payable annually

beginning September 1, 1983 through





system. 157,000 191,000

$635,000 Series 1985, Water and Sewer

Revenue Bonds, issued May 1987, through







system. 264,969 286,969

DRAFT





2016 2015

$3,750,000 Series 1989, Water and Sewer

Revenue Bonds, issued October 1991, through





operating revenues of the system and assessments

levied on the lands benefited by the system. 2,307,000 2,409,000








levied on the lands benefited by the system. 154,000 161,000


Revenue Bonds, issued August 1996, through




the rate of 5.125%; collateralized by the gross


levied on the lands benefited by the system. 3,109,000 3,205,000








levied on the lands benefited by the system. 613,000 629,000

DRAFT





2016 2015


Refunding Bonds, issued December 2001,

through USDA Rural Development. Principal is

payable annually beginning September 1, 2004

through September 1, 2041; interest payable

annually at the rate of 4.5%; collateralized by the

gross operating revenues of the system and


system. 1,850,000 1,890,000


Revenue Bonds, issued March 28, 2008 through







system. 3,077,000 3,124,000


Revenue Bonds, issued March 1, 2013 through

USDA Rural Development. Principal and

interest are payable annually beginning

September 1, 2016 through September 1, 2052;

interest payable annually at the rate of 2.5%;

collateralized by the gross operating revenues of

the system and a special assessment levied on

the lands benefited by the system. 4,835,000 4,884,000

16,816,969 17,329,969 Less: current portion

(due in one year) (538,000) (513,000)

Long-term portion 16,278,969$ 16,816,969$

DRAFT





Bond Resolutions

The bond resolutions established certain accounts and determined the order in

which certain revenues are to be deposited into those accounts. In addition, there

are various other covenants established by the official statements and District

resolutions, including such items as debt service coverage, reporting requirements,

and maintenance of facilities. Management believes that it has complied, in all

material respects, with these covenants. All required balances at September 30,

2016 and 2015, were maintained and are reflected as restricted deposits within

these financial statements.

A summary of revenue bond debt service requirements to maturity is as follows

September 30:

Year Ending

September 30 Principal Interest Total

2017 538,000$ 692,313$ 1,230,313$

2018 563,000 667,163 1,230,163

2019 589,000 640,830 1,229,830

2020 616,000 613,262 1,229,262

2021 477,000 584,415 1,061,415

2022 - 2026 2,715,969 2,573,464 5,289,433

2027 - 2031 3,249,000 1,908,040 5,157,040

2032 - 2036 3,578,000 1,150,086 4,728,086

2037 - 2041 1,831,000 631,481 2,462,481

2042 - 2046 1,466,000 323,206 1,789,206

2047 - 2051 1,008,000 94,906 1,102,906

2052 186,000 4,650 190,650

16,816,969$ 9,883,816$ 26,700,785$

Revenue bond debt interest expense was $714,385 and $737,251 for the years

ended September 30, 2016 and 2015, respectively. No revenue bond debt interest

expense was capitalized in either year.

DRAFT




NOTE H - LOANS PAYABLE - SRF

The following is a summary of the District's loans payable activity for the year

ended September 30:

DEP.SRF DEP.SRF

DW110120 DW110121 Total

Balance-September 30, 2014 370,190$ 294,830$ 665,020$

Proceeds - - -

Principal retired (17,405) (14,196) (31,601)

Balance-September 30, 2015 352,785 280,634 633,419

Principal retired (17,880) (14,544) (32,424)

Balance-September 30, 2016 334,905$ 266,090$ 600,995$

The loans payable - SRF activity for the year ended September 30 is as follows:

2016 2015

$419,681 loan payable representing 15% of a grant/loan payable to Florida

Department of Environmental Protection. The maximum amount of the loan is

$2,735,112, in which the FDEP has forgiven $2,324,845 of the note. The loan

also required the District to capitalize interest of $9,414 during the year

ended September 30, 2011. Interest accrues at 2.71%. Principal and interest is

payable in forty (40) semi-annual payments of $13,660 in May and November

beginning November 15, 2011. Final payment due May 2031. The loan is

collateralized by the gross operating revenues of the system and

assessments levied on the lands benefited by the system. 334,905$ 352,785$

$335,504 loan payable to Florida Department of Environmental Protection.

The loan requires forty (40) semi-annual payments of $10,637 in November

and May beginning November 15, 2011. The loan required the District to

capitalize interest of $7,346 during the year ended September 30, 2011. Final

payment date May 2031. Interest accrues at 2.43%. The loan is collateralized

by the gross operating revenues of the system and assessments levied on

the lands benefited by the system. 266,090 280,634

Total loans payable 600,995 633,419

Less current portion: (33,267) (32,423)

567,728$ 600,996$

DRAFT




NOTE H - LOANS PAYABLE - SRF, CONTINUED

Year Ending

September 30 Principal Interest Total

2017 33,267$ 15,328$ 48,595$

2018 34,132 14,463 48,595

2019 35,020 13,575 48,595

2020 35,931 12,664 48,595

2021 36,866 11,729 48,595

2022 - 2026 199,231 43,745 242,976

2027-2031 226,548 222,177 448,725

600,995$ 333,681$ 934,676$

Loans payable - SRF related interest expense was $16,172 and $16,994 for the

years ended September 30, 2016 and 2015, respectively. No loan interest costs

were capitalized in either year.

NOTE I - LINE OF CREDIT

On October 15, 2016, the District renewed an agreement with a financial institution

to establish an uncollateralized $1 million revolving Line of Credit (LOC) to be used

for emergency situations. The LOC is available, although the District had not

borrowed any funds from the LOC for the years ended September 30, 2016 or

2015. The LOC required interest paid quarterly and principal at maturity. Interest

accrues at Prime Rate plus .50% with a floor rate of 4.00%. The LOC is due in full

on October 15, 2018. Interest rate at September 30, 2016 was 3.75%. Upon

renewal at October 15, 2016, the floor increased to 4.0%.

DRAFT




NOTE J - ACCRUED COMPENSATED ABSENCES

Employees of the District are entitled to paid vacation based on length of service and

job classification. Accrued compensated absences had the following activity for the

year ended September 30:

Amount

Accrued compensated absences,

September 30, 2014 90,562$

Net Increase 9,995


September 30, 2015 100,557

Net Increase 14,832


September 30, 2016 115,389$

NOTE K - COMMITMENTS AND CONTINGENCIES

Litigation

The District, from time to time, is involved as a defendant and a plaintiff in certain

litigation and claims arising in the ordinary course of operations. As such, the District

maintains third party insurance coverages. In the opinion of legal counsel, the range

of potential recoveries or liabilities will not materially affect the financial position of the

District. The District intends to vigorously defend all claims unless first settled.

Potential losses, if any, may be recoverable through insurance coverages.

Federal Grants

Grant monies received by the District are for specific purposes and are subject to

review by the grantor agencies. Such audits may result in requests for reimbursement

due to disallowed expenditures. Based upon prior experience, the District does not

believe that such disallowances, if any, would have a material affect on the financial

position of the District.

The operations of the District are dependent upon the condition of the District's

facilities. These facilities are currently being rehabilitated and improved substantially

through the receipt of federal funding. Loss or reduction of such funding would havea material effect on the operations of the District.

DRAFT




NOTE L - NET ASSETS

Restricted net assets consist of the following at September 30:

2016 2015

Restricted assets 4,007,669$ 3,894,250$

Less: liabilities payable from restricted cash (1,785,965) (1,680,423)

2,221,704$ 2,213,827$

Unrestricted net assets consist of the following at September 30:

2016 2015

Designated for emergencies 960,000$ 860,000$

Designated for operations 3,300,690 2,673,344

Designated for vehicle replacement 259,086 276,353

Designated for capital equipment 540,234 191,103

Designated for maintenance reserve 2,143,097 1,903,042

Total Designated 7,203,107 5,903,842

Undesignated 1,276,049 1,803,970

Total unrestricted net assets 8,479,156$ 7,707,812$

NOTE M - RISK MANAGEMENT

The District 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.

Insurance programs for general/professional liability, automobile, and property are

through commercial insurance. The District retains the risk of loss, on insured claims,

up to a deductible amount (ranging from 0% to 5% of total insured value depending

on the type of loss) with the risk of loss in excess of this amount transferred to the

insurance carrier. Limits of general liability are $1,000,000 per occurrence. The

District is third party insured for employee health as well as workers' compensation.

DRAFT




NOTE N - SUBSEQUENT EVENTS

The District has received approval from USDA for funding of approximately

$21,000,000 to replace water lines with in the District. The Letter of Obligation is for

a $17,134,000 loan over 40 years at 2.25%; $4,063,900 grant; and the remaining

$13,000 in funding will be provided by the District. Construction is expected to begin

in fiscal year 2017, and it will last for approximately twenty four months.

DRAFT

REQUIRED SUPPLEMENTARY

INFORMATION

OTHER THAN MD&A

DRAFT


SCHEDULE OF REVENUES AND EXPENSES AND CHANGES IN

NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND

ACTUAL WITH RECONCILIATION TO GAAP BASIS

Year ended September 30, 2016

Original Final

Budget Budget Actual Variance

OPERATING REVENUES

Cross connection control fee 306,258$ 305,285$ 305,285$ -$

Water service 2,746,367 2,769,676 2,769,676 -

Wastewater service 4,739,810 4,755,135 4,755,135 -

Meter service charge 594,000 599,235 599,235 -

Late fees 86,879 87,850 87,850 -

Reconnect and transfer fees 105,431 103,780 103,780 -

Miscellaneous charges, fees and other income 50,000 58,355 64,263 5,908

TOTAL OPERATING REVENUES 8,628,745 8,679,316 8,685,224 5,908

OPERATING EXPENSES

WATER PLANTS / DISTRIBUTION

Salaries and wages 641,302 577,164 577,164 -

Overtime 80,922 25,651 25,651 -

FICA 55,250 47,338 47,338 -

Unemployment taxes 2,441 93 93 -

Employer pension contribution 38,478 31,967 35,643 (3,676)

Health/life insurance 235,932 245,453 225,453 20,000

Workers' compensation 26,000 24,605 24,605 -

Travel and training 26,000 18,678 18,678 -

Telephone and fax 6,424 8,986 8,986 -

Electric 168,253 161,125 161,125 -

General liability insurance 18,586 17,911 17,911 -

Comprehensive auto insurance 9,829 8,925 8,925 -

Other insurance 95,235 81,656 81,656 -

Repairs and maintenance 106,920 179,621 179,605 16

Other contract services 25,704 31,549 28,549 3,000

Vehicle fuel 37,821 22,402 22,634 (232)

Vehicle maintenance 20,967 13,051 13,051 -

Licenses and permits 4,125 4,830 4,830 -

Chemicals 103,635 95,244 90,244 5,000

Other materials 131,741 60,674 10,675 49,999

Laboratory fees 27,143 27,045 22,370 4,675

Uniforms/clothing allowance 3,900 2,455 2,455 -

Memberships/periodicals/books 1,228 1,470 1,470 -

SUB-TOTAL WATER PLANTS/DISTRIBUTION 1,867,836 1,687,893 1,609,111 78,782


DRAFT




ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED


Original Final


WASTEWATER PLANT


Overtime 25,324 10,908 10,908 -

FICA 40,466 42,817 42,817 -





Travel and training 18,000 8,798 9,898 (1,100)


Electric 266,124 245,182 245,182 -

Section 8 electric 15,656 5,957 5,957 -



Other insurance 100,832 77,069 77,069 -

Section 8 field maintenance 15,443 - - -

Repairs and maintenance 106,281 161,277 156,260 5,017

Section 8 repairs 13,952 15,724 15,724 -

Other contract services 28,236 65,506 65,506 -

Vehicle fuel 13,449 8,992 9,067 (75)



Chemicals 54,478 72,827 72,827 -

Other materials 38,929 47,531 42,531 5,000

Laboratory fees 28,727 40,895 40,895 -

Residuals management 139,700 80,003 80,003 -


Memberships/periodicals/books 613 679 679 -

SUB-TOTAL WASTEWATER PLANT 1,677,544 1,684,734 1,664,779 19,955


DRAFT






Original Final


WASTEWATER COLLECTION

Salaries and wages 300,363 300,363 298,267 2,096

Overtime 30,361 30,361 21,042 9,319

FICA 25,300 25,300 24,301 999

Unemployment taxes 1,049 137 37 100

Employer pension contribution 18,022 18,022 17,753 269


Workers' compensation 9,624 11,344 9,672 1,672

Travel and training 12,000 12,000 9,472 2,528

Telephone and fax 2,069 2,069 2,306 (237)

Electric 38,836 40,262 39,262 1,000



Other insurance 1,400 1,201 1,201 -

Repairs and maintenance 62,349 150,842 150,310 532


Vehicle fuel 15,278 14,541 9,574 4,967



Chemicals 1,596 - - -

Other materials 30,781 58,631 53,631 5,000



SUB-TOTAL WASTEWATER COLLECTION 711,981 856,739 818,494 38,245


DRAFT






Original Final


CUSTOMER SERVICE / ADMIN


Board Member Pay 21,000 - - -

Overtime 3,572 85 85 -

FICA 46,687 43,171 40,653 2,518





Legal services 43,000 56,500 56,500 -

Other professional services 1,500 11,774 6,774 5,000

Accounting/auditing 44,000 37,350 37,350 -

Engineering services 287,780 87,696 87,696 -

Engineering services/SRF - - - -



Postage and freight 44,434 34,214 34,214 -


Comprehensive auto insurance 819 744 744 -

Other insurance 33,010 36,508 36,508 -

Other contract services 36,069 53,008 53,178 (170)

Repairs and maintenance 22,162 697 697 -

Vehicle fuel 369 25 25 -

Vehicle maintenance 790 1,095 1,095 -

Office supplies 27,423 26,199 26,199 -

Miscellaneous office expense 36,417 46,361 41,876 4,485

Miscellaneous bank fees 9,337 4,009 3,474 535

Miscellaneous expense - - - -

Arrowhead Assessment Exp. 3,000 - - -

Advertising 3,628 5,116 5,116 -

Licenses and permits 1,459 175 175 -

Memberships/periodicals/books 9,078 12,308 12,308 -

SUB-TOTAL CUSTOMER SERVICE / ADMIN 1,516,472 1,248,421 1,226,687 21,734


DRAFT






Original Final


MAINTENANCE


Overtime 26,025 706 706 -

FICA 29,297 13,290 13,290 -

Unemployment taxes 799 64 64 -








Repairs and maintenance 9,471 18,796 18,796 -


Vehicle fuel 11,031 4,968 4,968 -


Licenses and permits 1,133 142 142 -

Other materials 15,105 37,298 32,298 5,000



SUB-TOTAL MAINTENANCE 645,203 430,897 416,892 14,005

DEPRECIATION

Depreciation 1,600,000 1,832,144 1,832,144 -

SUB-TOTAL DEPRECIATION 1,600,000 1,832,144 1,832,144 -

TOTAL OPERATING EXPENSES 8,019,036 7,740,828 7,568,107 172,721

OPERATING PROFIT 609,709$ 938,488$ 1,117,117$ 178,629$


DRAFT






Original Final


OPERATING PROFIT,

BROUGHT FORWARD 609,709$ 938,488$ 1,117,117$ 178,629$

NON-OPERATING REVENUES (EXPENSES)

Interest income 50,000 54,869 54,869 -

Assessment cost, net 5,435 - (270) (270)

Contributed capital - grant - FDEP/EPA - - - -

Contributed capital - grant - USDA/FHA - - - -

Contributed capital - customers 30,000 44,060 44,059 (1)

Contributed capital - developers 70,000 - - -

Debt proceeds - USDA - Series 2013 - - - -

Debt proceeds -FDEP - - - -

Debt proceeds -FCB - - - -

Other non-operating revenue 42,809 41,452 32,620 (8,832)

Capital outlay (100,000) (44,060) (1,051,375) (1,007,315)

Principal retirement - bonds (566,045) (565,045) (513,000) 52,045

Principal retirement - SRF (30,800) (31,601) (32,424) (823)

Net Assets - brought forward 5,694,028 5,903,842 - (5,903,842)

Net Assets - carryforward (5,007,874) (5,627,457) - 5,627,457

Maintenance reserve - - - -

Forfeited 401A - - 2,924 2,924

Interest expense (737,262) (737,661) (730,557) 7,104

Bad debt expense (35,000) 10,042 10,042 -

Gain (Loss) on disposal of assets (25,000) 13,071 13,072 1

NET NON-OPERATING

REVENUES (EXPENSES) (609,709) (938,488) (2,170,040) (1,231,552)

NET PROFIT (LOSS) -$ -$ (1,052,923)$ (1,052,923)$

Reconciliation:

Net profit (loss) (Non-GAAP Budgetary Basis) (1,052,923)$

Debt proceeds -

Capital outlay 1,051,375

Principal retirement - bonds 513,000

Principal retirement - SRF 32,424

Increase in Net Position (GAAP Basis) 543,876

Net position - beginning of the year 31,313,911

Net position - end of the year 31,857,787$


DRAFT

ADDITIONAL REPORTS

DRAFT

of 44

INDEPENDENT AUDITOR'S REPORT ON INTERNAL

CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF

BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS





We have audited, in accordance with auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States of America, the basic financial

statements of the business-type activities of Immokalee Water & Sewer District (the "District")

which comprise the statement of net position as of September 30, 2016, and the related

statements of revenues, expenses and changes in net position and cash flows for the year then

ended and the related notes to the financial statements and have issued our report thereon dated

January 16, 2017.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Immokalee Water

& Sewer District'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 opinion on

the financial statements, but not for the purpose of expressing an opinion on the effectiveness of

Immokalee Water & Sewer District's internal control. Accordingly, we do not express an opinion

on the effectiveness of the Immokalee Water & Sewer District's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow

management or employees, in the normal course of performing their assigned functions, to prevent,

or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or

combination of deficiencies, in internal control such that there is a reasonable possibility that a

material misstatement of the basic financial statements will not be prevented or detected and

DRAFT

of 44

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, as

defined previously. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Immokalee Water & Sewer District's

financial statements are free of material misstatement, we performed tests of its compliance with

certain provisions of laws, regulations, contracts and grants, noncompliance with which could have

a direct and material effect on the determination of financial statement amounts. However,

providing an opinion on compliance with those provisions was not an objective of our audit and,

accordingly, we do not express such an opinion. The results of our tests disclosed no instances of

noncompliance that are required to be reported under Government Auditing Standards.

Purpose of This Report

The purpose of this report is solely to describe the scope of our testing internal control and

compliance and the results of that testing, and not to provide an opinion on the effectiveness of the

District's internal control or on compliance. This report is an integral part of an audit performed in

accordance with Government Auditing Standards in considering the District's internal control and

compliance. Accordingly, this communication is not suitable for any other purpose.


Fort Myers, Florida

January 16, 2017

DRAFT

of 44





We have examined Immokalee Water & Sewer District's compliance with Section 218.415,

Florida Statutes, regarding the investment of public funds during the year ended September 30,

2016. Management is responsible for Immokalee Water & Sewer District's compliance with

those requirements. Our responsibility is to express an opinion on Immokalee Water & Sewer

District's compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the

American Institute of Certified Public Accountants and, accordingly, included examining, on a test

basis, evidence about Immokalee Water & Sewer District's compliance with those requirements

and performing such other procedures as we considered necessary in the circumstances. We

believe that our examination provides a reasonable basis for our opinion. Our examination does

not provide a legal determination on Immokalee Water & Sewer District's compliance with

specified requirements.

In our opinion, Immokalee Water & Sewer District complied, in all material respects, with the

aforementioned requirements for the year ended September 30, 2016.

This report is intended solely for the information and use of the Immokalee Water & Sewer

District and the Auditor General, State of Florida, and is not intended to be and should not be

used by anyone other than these specified parties.


Fort Myers, Florida

January 16, 2017

INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE

WITH SECTION 218.415, FLORIDA STATUTES

DRAFT

of 44

INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT





We have audited the accompanying basic financial statements of Immokalee Water & Sewer

District (the "District") as of and for the year ended September 30, 2016 and have issued our

report thereon dated Janaury 16, 2017.

We conducted our audit in accordance with auditing standards generally accepted in the United

States of America; the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States of America and Chapter

10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report

on Internal Control over Financial Reporting and Compliance and Other Matters based on an

Audit of the Financial Statements Performed in Accordance with Government Auditing Standards.

Disclosures in that report, which is dated January 16, 2017, should be considered in conjunction

with this report to management.

Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor

General, which governs the conduct of local governmental entity audits performed in the State of

Florida. This letter included the following information, which is not included in the aforementioned

auditor's report:

· Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether

or not corrective actions have been taken to address findings and recommendations

made in the preceding annual financial audit report. There were no financially significant

prior year comments.

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· Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the

management letter any recommendations to improve financial management. No such

recommendations were noted to improve financial management.

· 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 an

effect on the financial statements that is less than material but more than inconsequential.

In connection with our audit, we did not have any such findings.

· Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title

and legal authority for the primary government and each component unit if the reporting

entity be disclosed in the management letter, unless disclosed in the notes to the financial

statements. The District discloses this information in the notes to the financial statements.

· Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included

as to whether or not the local government entity has met one or more of the conditions

described in Section 218.503(1), Florida Statutes, and identification of the specific

condition(s) met. In connection with our audit, we determined that the District did not

meet any of the conditions described in Section 218.503(1), Florida Statutes.

· Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine

whether the annual financial report for the District for the fiscal year ended September

30, 2016, 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, 2016. In connection with our audit, we determined

that these two reports were in agreement.

· Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7), Rules of the Auditor General, we

have applied financial condition assessment procedures. It is management's responsibility

to monitor the District's financial condition, and our financial condition assessment was

based in part on representations made by management and the review of financial

information provided by same.

· Pursuant to Section 10.554(1)(i)5.d., Rules of the Auditor General, requires a statement

indicating a failure, if any, of a component unit special district to provide financial

information necessary to a proper reporting of the component unit within the audited

financial statements of this entity (F.S. Section 218.39(3)(b)). There are no known

component special districts required to report within these financial statements.

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· Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our audit

to determine the entity's compliance with the provisions of Section 218.415, Florida

Statutes, regarding the investment of public funds. In connection with our audit, we

determined that the Authority complied with Section 218.415, Florida Statutes as

reported in our Independent Accountant's Report on Compliance with Section 218.415,

Florida Statutes dated January 16, 2017, included herein.

PRIOR YEAR COMMENTS:

No financially significant comments noted.

CURRENT YEAR COMMENTS:

No financially significant comments noted.

Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its

distribution is not limited. Auditing standards generally accepted in the United States of America

require us to indicate that this letter is intended solely for the information and use of the Board of

Commissioners, management, the Auditor General of the State of Florida and other federal and

state agencies. This report is not intended to be and should not be used by anyone other than

these specified parties.


Fort Myers, Florida

Janaury 16, 2017

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