Comprehensive Annual Financial Report - 2010-2011Comprehensive Annual Financial Report
Fiscal Year Ended September 30, 2011
Waterfront Pavilion
The Waterfront Pavilion on Lake Minneola in Waterfront Park includes a
9,000 square foot open-air stage with covered seating for 400 spectators and
additional seating on the lawn. The attached 4,000 square foot Highlander
Hut building includes an open indoor space available for use by the public
for meetings or social gatherings and an attached courtyard overlooking
Lake Minneola.
City of Clermont, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2011
Prepared By
Finance
Regina M. Frazier Lacy Smith-Castillo
Finance Manager Accountant
i
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2011
Page
I. Introductory Section:
Table of Contents i
Letter of Transmittal iii
GFOA Certificate of Achievement ix
List of Principal Officials xi
Organizational Chart xii
II. Financial Section:
Independent Auditor’s Report 1
Management’s Discussion and Analysis 3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets 13
Statement of Activities 14
Fund Financial Statements:
Balance Sheet - Governmental Funds 15
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds 16
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of
Activities
17
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - General Fund
18
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual – Community Redevelopment
Special Revenue Fund
21
Statement of Net Assets - Proprietary Funds 22
Statement of Revenues, Expenses and Changes in
Fund Net Assets - Proprietary Funds
25
Statement of Cash Flows – Proprietary Funds 26
Statement of Fiduciary Net Assets - Fiduciary Funds 28
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 29
Notes to Financial Statements 31
Required Supplementary Information 61
Major Governmental Funds: 65
Capital Projects Fund 66
Other Governmental Funds: 67
Combining Balance Sheet – Other Governmental Funds 68
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Other Governmental Funds 70
Schedule of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual:
Special Revenue Funds 72
Debt Service Fund 77
ii
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2011
Page
II. Financial Section - Continued:
Fiduciary Funds: 79
Combining Statement of Fiduciary Net Assets 80
Combining Statement of Changes in Fiduciary Net Assets 81
III. Statistical Section:
Net Assets by Component 84
Changes in Net Assets 86
Fund Balances of Governmental Funds 90
Changes in Fund Balances of Governmental Funds 92
Governmental Activities Tax Revenues by Source 94
Assessed Value and Estimated Actual Value of Taxable Property 95
Property Tax Rates – Direct and Overlapping Governments 96
Principal Property Taxpayers 97
Property Tax Levies and Collections 98
Ratios of Outstanding Debt by Type 99
Direct and Overlapping Governmental Activities Debt 100
Pledged-Revenue Coverage 101
Demographic and Economic Statistics 104
Principal Employers 105
Principal Water Customers 106
Principal Sewer Customers 107
Full-time Equivalent City Government Employees by Function 108
Operating Indicators by Function 110
Capital Asset Statistics by Function 112
IV. Other Reports:
Report on Compliance and on Internal Control over Financial
Reporting Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards 115
Affidavit of Impact Fee Compliance 117
Management Letter 119
Status of Prior Year Comments 121
Communication with those Charged with Governance 123
CITY OF CLERMONT
P.O. BOX 120219 · CLERMONT, FLORIDA 34712-0219 · PHONE: 352-241-7360 · FAX: 352-394-4082
www.CityofClermontFL.com
March 30, 2012
To the Honorable Mayor and City Council and Citizens of the City of Clermont, Florida:
We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the
City of Clermont, Florida, for the fiscal year ended September 30, 2011. State law
requires that every general-purpose local government publish within six months of the
close of each fiscal year a complete set of audited financial statements. This report is
published to fulfill that requirement for the fiscal year ended September 30, 2011.
Management assumes full responsibility for the completeness and reliability of the
information presented in this report. To provide a reasonable basis for making these
representations, management of the City of Clermont has established a comprehensive
internal control framework that is designed both to protect the government’s assets from
loss, theft, or misuse and to compile sufficient reliable information for the preparation of
the City of Clermont’s financial statements in conformity with accounting principles
generally accepted in the United States of America (GAAP). Because the cost of
internal controls should not outweigh their benefits, the City of Clermont’s
comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief,
this financial report is complete and reliable in all material respects.
The City of Clermont’s financial statements have been audited by McDirmit Davis &
Company, LLC, a firm of licensed certified public accountants. The goal of the
independent audit was to provide reasonable assurance that the financial statements of
the City of Clermont for the fiscal year ended September 30, 2011, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified opinion that the City of Clermont’s financial statements for the fiscal year
ended September 30, 2011, are fairly presented in conformity with accounting principles
generally accepted in the United States of America. The independent auditor’s report is
presented as the first component of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent
auditor’s report and provides narrative introduction, overview, and analysis of the basic
financial statements. The MD&A provides “financial highlights” and interprets the
financial reports by analyzing trends and by explaining changes, fluctuations and
variances in the financial data. In addition, the MD&A is intended to disclose any known
significant events or decisions that affect the financial condition of the City. This letter of
iv
transmittal is designed to complement the MD&A and should be read in conjunction with
it.
Profile of the City of Clermont
The City was founded in 1884 and incorporated in 1916. The City currently has a land
area of 16.11 square miles and population of approximately 29,358. The City is located
in south Lake County, approximately twenty-two miles west of the City of Orlando and
about twenty-five miles northwest of Walt Disney World. Clermont, known as “The Gem
of the Hills”, is truly the crossroads of Florida, at the intersection of State Road 50 that
runs east and west across the state and U.S. Highway 27, which runs north and south
through the center of the state. Clermont is on a chain of 15 lakes connected by the
winding Palatlakaha River in the Ocklawaha Basin of tributaries of the St. Johns River,
the only river system in the United States of America that flows north. The lakes offer
residents the opportunity for excellent fishing, boating, swimming and other water sports
including competitive skiing and wakeboarding offered by world-class instructional
schools.
The City of Clermont is known for its scenic beauty, relaxed lifestyle, recreational
facilities and temperate climate. Residents have a wide variety of housing and property
ownership opportunities, including lakefront and lake access property, golf course
communities, homes in existing neighborhoods, residential retirement communities and
new subdivisions. The City of Clermont Parks and Recreation Department operates 23
parks, 5.7 miles of scenic paved trails, 4 piers measuring a total of 840 feet, 1-612 foot
boardwalk, 4 special purpose buildings and a boat ramp.
The City of Clermont provides a full range of services as directed by its charter. These
include police and fire protection; streets and sidewalk maintenance, planning and
development, code enforcement, mosquito control, recreational facilities and programs,
cemetery and general administrative functions. The City also provides potable water,
wastewater collection and treatment, reclaimed water production and distribution,
stormwater treatment, solid waste collection and recycling services.
The City operates according to a Council/Manager form of government, with an
appointed City Manager, four elected City Council members and an elected Mayor. The
governing body has legislative responsibilities including setting policy, passing
ordinances, adopting the budget, appointing committees, and hiring the City’s Manager.
The City Manager is responsible for carrying out the policies and ordinances of the
governing body, for overseeing the day-to-day operations of the government, and for
hiring the directors of the various departments.
The annual budget serves as the foundation the City of Clermont’s financial planning
and control. All departments of the City of Clermont are required to submit requests for
appropriations to the City Manager. The City Manager then uses these requests as the
starting point for developing a proposed budget. The City Manager then presents this
proposed budget to the Council for review. The City Council is required to hold public
hearings on the proposed budget and to adopt a final budget by no later than September
30, the close of the City of Clermont’s fiscal year. The appropriated budget is prepared
by fund (e.g. general fund), and department (e.g. fire department). The City Manager
may make transfers of appropriations within departments; however, any revisions that
alter the total appropriations of a department must be approved by City Council. Original
v
and final amended budget-to-actual comparisons are provided in this report for each
individual governmental fund. The General Fund is presented on pages 18-19, the
Community Redevelopment Special Revenue fund is presented on page 21 as part of
the basic financial statements for the governmental funds. The Capital Projects Fund is
presented on page 66, followed by the other governmental funds, which start on page
68.
The information presented in the financial statements is perhaps best understood when
it is considered from the broader perspective of the specific environment within which the
City of Clermont operates.
Local economy. The City of Clermont is essentially residential in character and its
economy is centered in retail, real estate, personal services and healthcare. At
September 30, 2011, Lake County’s unemployment rate was 10.6%. This is a decrease
of 1.8% from 2010 and is slightly higher than the state’s average of 10.5% and the
national average of 8.9%. Educational institutions in Clermont such as Lake-Sumter
Community College and the University of Central Florida assist in supplying a skilled
labor force.
The cost of living for the region is below the national average. There is no personal
income tax, either locally or state-wide. Sales tax, currently at 7%, is not charged on
food or medicine. One cent of the sales tax charged within the county is limited to $50
per transaction (1% of $5,000). As discussed in the MD&A, this additional penny sales
tax must be used for infrastructure including roads, buildings, land, land improvements
and certain equipment.
Major initiatives. The following items are capital projects that are currently in the
planning/design phase for the City:
• The replacement of the existing Police Station – A new 4 acre site is under
contract for purchase and construction of the new 26,000 square foot facility is
scheduled to begin in late 2012. The project is anticipated to cost $6.3 million
and will be funded from police impact fees and infrastructure sales taxes.
• The replacement of Jenkins Auditorium – The replacement building will be built
on vacant City owned property and will include meeting space, kitchen area and
office area. The new facility is anticipated to cost $2,091,500 and is proposed to
be funded from infrastructure sales taxes.
• The construction of the West Water Treatment Plant – The plant will include a
one million gallon ground storage tank, a sodium hypochlorite feed system for
disinfection and a bank of high service pumps to deliver potable water to the
distribution system. The construction is anticipated to cost $8,000,000 and will
be funded from water utility reserves.
Long-term financial planning. The City uses an extensive water and sewer master
plan to manage growth in the water and sewer utility systems. The plan outlines water
and sewer line size requirements for planned development with rough cost estimates.
The plan also has benchmarks for plant expansions and additional well requirements.
vi
Slowed building permits and declining home values are being monitored closely since
they are directly impacted by the current recession. The recession also affects the
growth of impact fees, ad valorem taxes, utility service taxes and franchise fee revenues
in future years. Due to these circumstances, the City is actively monitoring all expansion
projects and limiting any costs that will require multi-year funding commitments. The
Clermont City Council and management through careful short and long range planning
and sound management practices are committed to budgeting and managing all
resources in the most cost effective manner.
Relevant financial policies. The City regularly reviews revenues and expenditures
throughout the fiscal year. During the course of the year, if actual revenues are
expected to fall short of the budgeted amount, expenditures are reduced to ensure that a
shortage of funds or a significant use of fund balance does not occur.
The City administers a cash management and investment program that seeks to
maximize, in order of priority, the preservation of funds, liquidity and interest earnings
over its cash and investments. Cash resources of the individual funds are combined to
form a pool of cash and investments. The average cash and investment pool balance
during the year (not including pension funds) was $50,614,590 and the average
investment earnings rate was 1.75%. Investment income includes the change in the fair
value of investments. During the year monies were invested in accordance with the
City’s investment policy. Pension fund assets were invested in accordance with the
City’s Investment Policy for Retirement Funds. The total pension fund cash and
investments at year end were $17,944,837 and the average investment income was
1.72%.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Clermont for its comprehensive annual financial report for the fiscal year ended
September 30, 2010. This was the twenty-third consecutive year that the City has
received this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program’s requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and
dedicated services of the staffs in the City Manager’s office, Planning Department and
Administrative Services Department. We would like to express our appreciation to all
members of these departments who assisted and contributed to the preparation of this
report. A special note of appreciation is due Regina Frazier and Lacy Smith-Castillo in
Finance for their hard work and dedicated efforts in the preparation of this report. Credit
also must be given to the Mayor and the City Council for their support in maintaining the
highest standards of professionalism in the management of the City of Clermont’s
finances.
Re
s
p
e
c
t
f
u
l
l
y
s
u
b
m
i
t
t
e
d
,
^
^
^
2
w
,
e
S
a
u
n
d
e
r
s
Jq
g
6
p
h
V
a
n
Z
i
l
e
Ci
a
n
a
g
e
r
Ad
m
i
n
i
s
t
r
a
t
i
v
e
s
D
i
r
e
c
t
o
r
.
I
VI
I
Ce
r
t
i
f
i
c
a
t
e
o
f
A
c
h
i
e
v
e
m
e
n
t
fo
r
E
x
c
e
l
l
e
n
c
e
in
F
i
n
a
n
c
i
a
l
Re
p
o
r
t
i
n
g
Pr
e
s
e
n
t
e
d
t
o
Ci
t
y
o
f
C
l
e
r
m
o
n
t
F
l
o
r
i
d
a
Fo
r
i
t
s
C
o
m
p
r
e
h
e
n
s
i
v
e
A
n
n
u
a
l
Fi
n
a
n
c
i
a
l
R
e
p
o
r
t
fo
r
f
h
e
F
i
s
c
a
l
Y
e
a
r
E
n
d
e
d
Se
p
t
e
m
b
e
r
3
0
,
2
0
1
0
A
C
e
r
t
i
f
i
c
a
t
e
o
f
A
c
h
i
e
v
e
m
e
n
t
f
o
r
E
x
c
e
l
l
e
n
c
e
i
n
F
i
n
a
n
c
i
a
l
Re
p
o
r
t
i
n
g
i
s
p
r
e
s
e
n
t
e
d
b
y
t
h
e
G
o
v
e
r
n
m
e
n
t
F
i
n
a
n
c
e
O
f
&
c
e
r
s
As
s
o
c
i
a
t
i
o
n
o
f
t
h
e
U
n
i
t
e
d
S
t
a
t
e
s
a
n
d
C
a
n
a
d
a
t
o
go
v
e
r
n
m
e
n
t
u
n
i
t
s
a
n
d
p
u
b
l
i
c
e
m
p
l
o
y
e
e
r
e
t
i
r
e
m
e
n
t
sy
s
t
e
m
s
w
h
o
s
e
c
o
m
p
r
e
h
e
n
s
i
v
e
a
n
n
u
a
l
f
i
n
a
n
c
i
a
l
re
p
o
r
t
s
(
C
A
F
R
s
)
a
c
h
i
e
v
e
f
h
e
h
i
g
h
e
s
t
st
a
n
d
a
r
d
s
i
n
g
o
v
e
r
n
m
e
n
t
a
c
c
o
u
n
t
i
n
g
an
d
f
i
n
a
n
c
i
a
l
r
e
p
o
r
t
i
n
g
.
M
S
^
^
.
^
^
m
s
AK
B
i
ae
C
S
W
M
P
r
e
s
i
d
e
n
t
s
w
w
a
m
B
N
^!
y
^
'
^
s
i
^
^
ft
W
t
f
i
O
.f
<t
Ex
e
c
u
t
i
v
e
D
i
r
e
c
t
o
r
xi
CITY OF CLERMONT, FLORIDA
LIST OF ELECTED AND APPOINTED OFFICIALS
SEPTEMBER 30, 2011
ELECTED OFFICIALS
Mayor Harold Turville, Jr.
Mayor Pro-Tem Ray Goodgame
Council Member Jack Hogan
Council Member Keith Mullins
Council Member Rick VanWagner
APPOINTED OFFICIALS
City Manager Wayne Saunders
Assistant to the City Manager Barbara Hollerand
City Attorney Dan Mantzaris
Administrative Services Director Joseph Van Zile
City Clerk Tracy Ackroyd
Engineering Director Tamara Richardson
Fire Chief Carle Bishop
Planning Director James Hitt
Police Chief Stephen Graham
Public Services Director Preston Davis
Utilities Director James Kinzler
CITY OF CLERMONT, FLORIDA
CITIZENS
CLERMONT
CITY COUNCIL
CITY
ATTORNEY COMMITTEES
CITY
MANAGER
SPECIAL
OPERATIONS
EMERGENCY
MEDICAL
SERVICES
FIRE INSPECTION
AND
PREVENTION
VOLUNTEER
AND RESERVE
PROGRAM
TRANSPORTATION
FLEET
MAINTENANCE
FACILITY
MAINTENANCE
PARKS
UTILITY
BILLING
HUMAN
RESOURCES
RISK
MANAGEMENT
BUDGETING
INFORMATION
TECHNOLOGY
PURCHASING
WATER SYSTEM
IMPROVEMENTS
WASTEWATER
SYSTEM
IMPROVEMENTS
WATER
TREATMENT AND
DISTRIBUTION
SEWER
COLLECTION
AND TREATMENT
RECLAIMED
WATER
STORMWATER
DRAINAGE
SANITATION
CAPITAL
IMPROVEMENTS
GIS
CONSTRUCTION
INSPECTIONS
STORMWATER
MANAGEMENT
CITY CLERK PLANNING
AND ZONING RECREATION POLICE FIRE PUBLIC
SERVICES ADMINISTRATIVE
SERVICES
UTILITIES ENGINEERING
RECORDS
MANAGEMENT
WEBSITE
MANAGEMENT
CEMETERY
ELECTION
QUALIFYING
PERMITTING
OCCUPATIONAL
LICENSES
ZONING
CODE
ENFORCEMENT
BUILDING
SERVICES
RECREATIONAL
PROGRAMS
FACILITY
SCHEDULING
CITY EVENTS
PLANNING
CRIMINAL
INVESTIGATIONS
TRAFFIC
ENFORCEMENT
ROAD
PATROL
COMMUNITY
RELATIONS
FIRE
SUPPRESSION FINANCE
1
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the pension and other postemployment benefits
disclosures on pages 3 through 12 and 61 through 64 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Clermont, Florida’s basic financial statements as a whole. The
introductory section, combining and individual fund financial statements and schedules and
statistical section are presented for purposes of additional analysis and are not a required part
of the basic financial statements. The combining and individual nonmajor fund financial
statements and schedules are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole. The introductory and statistical sections have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
March 5, 2012
2
MANAGEMENT’S DISCUSSION AND ANALYSIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Clermont, Florida we offer readers of the City of Clermont’s (the City)
financial statements this narrative overview and analysis of the financial activities of the City of
Clermont for the fiscal year ended September 30, 2011. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished in our
letter of transmittal, which can be found on pages iii through vii of this report.
Financial Highlights
• The City of Clermont’s assets exceeded its liabilities at September 30, 2011 by
$139,786,687 (net assets). Of this amount, $31,841,355 (unrestricted net assets) may
be used to meet the City’s ongoing obligations to citizens and creditors.
• The City’s total net assets increased by $1,048,507 (or 0.75%) over the previous fiscal
year.
• At September 30, 2011, the City of Clermont’s governmental funds reported combined
ending fund balances of $21,529,812 a decrease of $647,913 from the previous fiscal
year. Of this amount $10,046,694 (unassigned fund balance) is available for spending
at the government’s discretion.
• The General Fund, the City’s primary operating fund, reported an unassigned fund
balance of $10,047,810, which represents 58% of total General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Clermont’s
basic financial statements. The City’s basic financial statements are comprised of three
components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This report also contains other supplementary information in addition to
the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Clermont’s financial position, in a
manner similar to a private-sector business. They include a Statement of Net Assets and a
Statement of Activities. These statements appear on pages 13 and 14 of the report.
The Statement of Net Assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The Statement of Activities presents information showing how the City’s net assets changed during
the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Clermont that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City of Clermont
include general government, public safety, physical environment, transportation, economic
environment, and culture and recreation. The business-type activities of the City of Clermont
include water, sewer, sanitation, and stormwater utilities.
3
The government-wide financial statements include only the City of Clermont itself (known as the
primary government) and one blended component unit (The City of Clermont Community
Redevelopment Trust Fund).
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Clermont, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City of Clermont can be
divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating the City’s
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City of Clermont maintains ten individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the General Fund, Capital Projects
Fund, and the Community Redevelopment Fund, all of which are considered to be major funds.
Data from the other seven governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major governmental funds is provided in
the form of combining statements elsewhere in this report.
The City of Clermont adopts an annual appropriated budget for all of its governmental funds.
Budgetary comparison statements have been provided for the General Fund (pages 18-19) and
the Community Redevelopment Fund (page 21) to demonstrate compliance with budgets. Other
major and nonmajor funds comparisons can be found beginning on page 66.
The basic governmental fund financial statements can be found on pages 15 - 21 of this report.
Proprietary funds. The City of Clermont maintains two types of proprietary funds: enterprise and
internal service, which can be found on pages 22-27 of this report.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City of Clermont uses enterprise funds to account for
water, sewer, sanitation and stormwater utilities. Internal service funds are an accounting tool used
to accumulate and allocate costs internally among various functions. The City utilizes an internal
service fund for its health insurance. Because services accounted for in the internal service fund
predominately benefit governmental rather than business-type functions, it has been included
within the governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for water, sewer and sanitation which are all considered to be major funds. Data for the
Stormwater Fund is also included since it is the only nonmajor fund.
4
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City of
Clermont’s own programs. The accounting used for fiduciary funds is much like that used for the
proprietary funds.
The basic fiduciary fund financial statements can be found on pages 28 - 29 of this report.
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
The notes to financial statements can be found on pages 31 - 60 of this report.
Other information. The combining statements referred to earlier in connection with other
governmental and proprietary funds are presented immediately following the notes to the financial
statements. Combining and individual fund statements and schedules can be found on pages 66 -
77 of this report.
Government-Wide Financial Analysis
The following is a summary of the City’s net assets for governmental and business-type activities
for the current year as compared to the prior year. For more detail see the Statement of Net
Assets on page 13.
2010-11 2009-10 2010-11 2009-10 2010-11 2009-10
Assets:
Current and other assets 22,354,843$ 25,017,023$ 30,868,191$ 31,214,772$ 53,223,034$ 56,231,795$
Capital assets 38,463,475 37,856,800 71,578,874 71,173,655 110,042,349 109,030,455
Total assets 60,818,318 62,873,823 102,447,065 102,388,427 163,265,383 165,262,250
Liabilities:
Long-term liabilities outstanding5,405,896 5,449,961 16,179,340 16,570,095 21,585,236 22,020,056
Other liabilities 672,352 2,925,470 1,221,108 1,578,544 1,893,460 4,504,014
Total liabilities 6,078,248 8,375,431 17,400,448 18,148,639 23,478,696 26,524,070
Net assets:
Invested in capital assets,
Net of related debt 34,893,475 33,816,797 56,430,326 55,539,792 91,323,801 89,356,589
Restricted 7,381,124 6,693,736 9,240,407 17,293,091 16,621,531 23,986,827
Unrestricted 12,465,471 13,987,859 19,375,884 11,406,905 31,841,355 25,394,764
Total net assets 54,740,070$ 54,498,392$ 85,046,617$ 84,239,788$ 139,786,687$ 138,738,180$
CITY OF CLERMONT’S Net Assets
Governmental Activities Business-type Activities Total
The City’s total net assets at September 30, 2011 were $139,786,687. Of the City’s total net
assets $91,323,801 (65.3%) reflects its investment in capital assets (e.g., land, buildings,
improvements, infrastructure and equipment) less any related debt used to acquire those assets
that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City of Clermont’s
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s total net assets, $16,621,531 (11.9%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of the City’s
total net assets, $31,841,355 (22.8%) is unrestricted. These assets may be used at the City’s
discretion in meeting its ongoing obligations to citizens and creditors.
5
The City’s net assets increased by $1,048,507 during the current fiscal year. Major components of
this increase are discussed in the Governmental and Business-Type Activities sections to follow.
Restricted reserves represent the accumulation of impact fee funds for upcoming and ongoing
capital projects.
The following is a summary of the City’s governmental and business-type activities for fiscal year
2010-11, including revenues and expenses, with a comparison to the prior year. For more detail
see the Statement of Activities on page 14.
2010-112009-102010-112009-102010-112009-10
Revenues:
Program revenues -
Charges for services 2,589,177$ 3,393,971$ 13,985,304$ 13,111,848$ 16,574,481$ 16,505,819$
Operating grants and
contributions 1,236,588 1,162,255 - - 1,236,588 1,162,255
Capital grants and
contributions 128,786 134,200 998,446 1,543,638 1,127,232 1,677,838
General revenues -- -
Property Taxes 5,965,731 6,844,084 - - 5,965,731 6,844,084
Franchise Fees 2,284,839 2,373,096 - - 2,284,839 2,373,096
Utility Taxes 2,568,141 2,558,282 - - 2,568,141 2,558,282
Intergovernmental 4,664,393 4,503,416 - - 4,664,393 4,503,416
Investment income and
miscellaneous 477,857 525,178 145,153 359,711 623,010 884,889
Total revenues 19,915,512 21,494,482 15,128,903 15,015,197 35,044,415 36,509,679
Expenses:
General government 3,643,321 4,286,713 - - 3,643,321 4,286,713
Public safety 12,530,840 12,458,811 - - 12,530,840 12,458,811
Physical environment 279,236 318,878 - - 279,236 318,878
Transportation 1,661,325 1,767,731 - - 1,661,325 1,767,731
Economic environment 101,486 50,328 - - 101,486 50,328
Culture and recreation 1,821,837 2,055,568 - - 1,821,837 2,055,568
Interest on long-term debt156,185 174,858 - - 156,185 174,858
Water - - 4,460,605 4,316,170 4,460,605 4,316,170
Sewer - - 6,021,892 5,927,529 6,021,892 5,927,529
Sanitation - - 2,364,382 2,168,794 2,364,382 2,168,794
Stormwater - - 954,799 847,963 954,799 847,963
Total expenses 20,194,230 21,112,887 13,801,678 13,260,456 33,995,908 34,373,343
Increase (Decrease) in Net
Assets Before Transfers (278,718) 381,595 1,327,225 1,754,741 1,048,507 2,136,336
Transfers 520,396 442,782 (520,396) (442,782) - -
Increase in Net Assets 241,678 824,377 806,829 1,311,959 1,048,507 2,136,336
Net Assets – Beginning54,498,392 53,674,015 84,239,788 82,927,829 138,738,180 136,601,844
Net Assets – Ending 54,740,070$ 54,498,392$ 85,046,617$ 84,239,788$ 139,786,687$ 138,738,180$
Governmental Activities
CITY OF CLERMONT’S Changes in Net Assets
Business-type Activities Total
6
Governmental activities - Governmental activities increased the City of Clermont’s net assets by
$241,678, which is primarily due to reduced general government expenditures.
The following graph is a comparison of program revenues and program expenses for all
governmental activities. This chart is intended to give the reader an idea of the degree to which
governmental activities are self-supporting.
The following pie chart illustrates the composition of governmental activities revenue and its
percent in relation to total governmental activities revenues.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
General governmentPublic safetyTransportation/public
works
Culture & recreationPhysical environment
and other
Interest on long‐term
debt
$3,643,321
$12,530,840
$1,661,325 $1,821,837
$380,722 $156,185
$1,695,584 $1,413,879
$306,159 $538,929
$0 $0
Expenses and Program Revenues -Governmental Activities
Expenses
Program revenues
Intergovernmental,
23.4%
Charges for services,
13.0%
Operating grants and
contributions, 6.2%
Investment income &
miscellaneous , 2.4%
Other taxes, 24.4%
Capital grants and
contributions, 0.6%
Property taxes, 30.0%
Revenues by Source -Governmental Activities
Intergovernmental Charges for services Operating grants and contributions
Investment income & miscellaneous Other taxes Capital grants and contributions
Property taxes
7
Business-type activities - Business-type activities increased the City of Clermont’s net assets by
$806,829. This change was due to capital contributions totaling $998,446. These contributions
are water and sewer impact fees paid by developers. The fees were adopted by the City to require
new development to pay its proportionate share of the capital costs necessary to accommodate
new development impacts on the City’s water and sewer system. The City is using this revenue for
large capital projects that are currently under construction such as Lift Station Improvements and
the Reclaim Water System Expansion.
The following graph is a comparison of program revenues and program expenses for all business-
type activities. This chart is intended to give the reader an idea of the degree to which business-
type activities are self-supporting.
The following pie chart illustrates the composition of business-type activities revenue and its
percent in relation to total business-type activities revenues.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Water SewerSanitationStormwater
$4,460,605
$6,021,892
$2,364,382
$954,799
$5,657,264 $5,782,594
$2,688,474
$855,418
Expenses and Program Revenues -Business Type Activities
Expenses
Program Revenue
Investment income &
miscellaneous , 1.0%
Charges for Services,
92.4%
Capital Grants and
Contributions, 6.6%
Revenues by Source -Business Activities
Investment income & miscellaneous Charges for Services Capital Grants and Contributions
8
Financial Analysis of the City’s Funds
As noted earlier, the City of Clermont uses fund accounting to ensure and demonstrate
compliance with finance-related requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Clermont’s financing requirements. In particular, unassigned fund balance
may serve as a useful measure of a government’s net resources available for spending at the
end of the fiscal year.
As of September 30, 2011, the City of Clermont’s governmental funds reported combined
ending fund balances of $21,529,812 a decrease of $647,913 in comparison with the prior year.
This decrease is primarily due to the use of accumulated funds for the completion of planned
capital projects. Of the governmental funds combined ending fund balances, $10,046,694
(46.7%) represents unassigned fund balance, which is available for spending at the City’s
discretion. An additional $3,765,884 (assigned fund balance) has been set aside for FY 2012
capital projects and expenditures. Restricted fund balances totaling over $6.5 million include
funds required for debt service, as well as funds collected for specific purposes such as impact
fees and community redevelopment. The remainder of fund balance is non spendable
($1,183,370) to indicate that it is not available for spending because it has already been
committed for inventories and prepaid expenses, or it is being held in a non-expendable trust
fund.
The General Fund is the chief operating fund of the City of Clermont. As of September 30,
2011, the fund balance in the General Fund was $11,469,528 a decrease of $134,007 in
comparison with the prior year. This decrease is due to current expenditures exceeding current
revenues, however, this is nearly $1.4 million less than originally budgeted and over $1.9 million
less than the revised budget. Revenues exceeded budget by $613,454 mainly attributable to
tax receipts coming in higher than anticipated due to additional collections of delinquent taxes
as well as fewer taxpayers taking advantage of the early payment discounts. Departmental
expenditures also came in less than anticipated reducing the amount of reserves used. Of the
total fund balance in the General Fund, $10,047,810 (87.6%) is unassigned fund balance. As a
measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund
balance and total fund balance to total fund expenditures. Unassigned fund balance represents
58.3% of total General Fund expenditures, while total fund balance represents 66.5% of that
same amount.
The City also has a Capital Projects Fund that is considered a major fund under criteria set forth
by GASB Statement No. 34. This fund is used to account for the acquisition of capital assets or
construction of major capital projects not being financed by proprietary funds. Funds have been
accumulated so projects can be completed on a pay-as-you-go basis. During fiscal year 2010-
11, the fund balance of the capital projects fund decreased by $123,875 due to completion of
planned capital projects. Additional on-going projects are expected to be completed during FY
2012 utilizing the balance of the accumulated funds.
The Community Redevelopment Special Revenue Fund is considered a major fund in order for
our external auditors to express an opinion on this fund as required by Florida Statutes chapter
163.387(8). This fund was created in 1997 as a dependent taxing district. The incremental
annual increase in tax over the base years is used to fund projects. As of September 30, 2011,
the fund balance was $1,658,517 an increase of $185,783 over the prior year. This increase is
due to additional delays in the streetscape improvements project.
9
The remainder of the change $575,814 to the governmental fund balance was from the non-
major governmental funds. The Infrastructure Fund balance increased by $443,502 mainly due
to an increase in state infrastructure tax receipts. Recreation and Fire Impact Fee fund
balances combined decreased a total of $1,072,297 due to the planned use of funds for capital
projects. The fund balances in the remaining non-major funds increased a total of $52,981.
Proprietary Funds. Proprietary funds are used to account for operations (a) 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 (b) 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. The City’s major
proprietary funds are water, sewer and sanitation.
The Water Fund accounts for the provision of potable water service to City and non-City
residents. All activities necessary to the provision of these services are accounted for in this
fund, including, but not limited to administration, plant and line maintenance. As of September
30, 2011, the City of Clermont’s Water Fund reported total net assets of $29,163,622, an
increase of $694,600 in comparison with the prior year. This increase in net assets was a result
of surplus operating income primarily due to lower than anticipated operating expenses.
The Sewer Fund accounts for the provision of sewer services to City and non-City residents. All
activities necessary to the provision of these services are accounted for in this fund, including,
but not limited to administration, plant and line maintenance. As of September 30, 2011, the
City of Clermont’s Sewer Fund reported total net assets of $47,103,846, a decrease of
$202,537 in comparison with the prior year. This decrease is primarily due to the completion of
capital projects.
The Sanitation Fund accounts for the provision of garbage and trash collection, recycling, and
composting services to City residents. All activities necessary to the provision of these services
are accounted for in this fund. As of September 30, 2011, the City of Clermont’s Sanitation
Fund reported total net assets of $4,176,414, an increase of $318,052 in comparison with the
prior year, which is primarily due to surplus operating income.
General Fund Budgetary Highlights
During the year there was a $1,202,822 increase in appropriations between the original and
final amended budget. Following are the main components of the increase:
• $599,588 for expenditures associated with several public safety grants. These grants
had not yet been awarded at the start of the fiscal year.
• $412,352 for increases in the City’s contribution to the Group Self Insurance Fund.
• $25,000 for a lawsuit settlement.
• $27,504 for software maintenance costs for the Police Department.
• $14,500 for the cost of mosquito control spraying.
• $22,552 for the cost of staffing lifeguards at the Waterfront Park.
• $50,616 for the costs of a labor attorney.
10
• $16,952 for the purchase of equipment to provide connectivity to the Fire Department
mobile data terminals.
• $18,867 to cover the deficit in the Building Services Fund.
General Fund revenue increases totaling $618,168 were due to the receipt of several public
safety grants, which were awarded after the beginning of the fiscal year.
Even considering the above noted increases in General Fund budgeted appropriations, actual
expenditures were less than budgeted by $1,247,546. In addition, actual revenues exceeded
the budget by $613,454.
Capital Assets
The following is a summary of the City of Clermont’s capital assets, net of depreciation for
governmental and business-type activities for the current year with a comparison to the prior
year. Additional information on the City of Clermont’s capital assets can be found in Note 6 on
pages 45 - 46 of this report.
2010-112009-102010-112009-102010-112009-10
Land 22,128,032$ 22,128,032$ 1,851,483$ 1,457,973$ 23,979,515$ 23,586,005$
Buildings 8,598,119 7,723,916 - 76 8,598,119 7,723,992
Infrastructure 4,921,173 4,206,113 61,789,590 60,468,734 66,710,763 64,674,847
Machinery and Equipment1,489,583 1,992,930 1,365,717 1,579,181 2,855,300 3,572,111
Intangibles 206,250 324,821 - - 206,250 324,821
Construction in progress 1,120,318 1,480,988 6,572,084 7,667,691 7,692,402 9,148,679
Total 38,463,475$ 37,856,800$ 71,578,874$ 71,173,655$ 110,042,349$ 109,030,455$
CITY OF CLERMONT’S Capital Assets
(net of depreciation)
Governmental ActivitiesBusiness-type Activities Total
The City of Clermont’s investment in capital assets for its governmental and business-type
activities as of September 30, 2011, amounts to $110,042,349 (net of accumulated
depreciation). This investment in capital assets includes land, buildings,
improvements/infrastructure, machinery and equipment and intangibles. The total change in the
City’s investment in capital assets for the current fiscal year was $1,011,894. Major capital
asset events during the current fiscal year included the following:
• Completion of the Waterfront Pavilion – $1,221,060 was added and prior years
Construction in Progress in the amount of $207,295 was moved to Buildings for a total
project cost of $1,428,355.
• Completion of the West Park Renovations – $718,200 was added and prior years
Construction in Progress in the amount of $156,498 was moved to
Infrastructure/Improvements for a total project cost of $874,698.
• Completion of the Third Street Reconstruction – $248,410 was added and prior years
Construction in Progress in the amount of $233,565 was moved to
Infrastructure/Improvements for a total project cost of $481,975.
• Completion of the Equalization Wastewater Basin – $3,000 was added and prior years
Construction in Progress in the amount of $1,189,630 was moved to
Infrastructure/Improvements for a total project cost of $1,192,630.
• Construction in progress includes construction of the Community Center, Police
Headquarters Expansion, Meter Replacement Program, Water and Sewer Security
Improvements and Reclaim Water System Expansion.
11
Debt Administration
The following is a summary of the City’s long-term debt for governmental and business-type
activity for the current year with a comparison to the prior year. Additional information on long-
term debt can be found in Note 7 on pages 47 - 49 of this report.
2010-112009-102010-112009-102010-112009-10
Revenue bonds payable3,570,000$ 4,040,000$ 16,105,000$ 16,640,000$ 19,675,000$ 20,680,000$
Total 3,570,000$ 4,040,000$ 16,105,000$ 16,640,000$ 19,675,000$ 20,680,000$
CITY OF CLERMONT’S Outstanding Debt
Governmental ActivitiesBusiness-type Activities Total
At the end of the current fiscal year, the City of Clermont had total debt outstanding of
$19,675,000, which includes revenue bonds payable.
Economic Factors and Next Year’s Budgets and Rates
• The annual unemployment rate for Lake County in 2011 was 10.6%, which is a decrease
of 1.8% from 2010. It is higher than both the state’s average of 10.5% and the national
average of 8.9%.
• The taxable value of commercial and residential property decreased 15.1% from fiscal
year 2009-10 to fiscal year 2010-11 due to declining home values and foreclosures.
• Population increased 2.14% from 28,742 in 2010 to 29,358 in 2011.
As of September 30, 2011, the General Fund unassigned fund balance was $10,047,810. The
City appropriated $912,137 of this amount for spending in the 2011-12 fiscal year budget. The
same property tax rate is included for the General Fund for the 2011-12 fiscal year budget.
However, property tax revenue is projected to be $685,865 lower in fiscal year 2011-12 due to
continued declining home values and foreclosures.
No utility rate adjustments were proposed for the 2011-12 fiscal year with the exception of the
sewer rate structure. The sewer rates increased 1.18% on October 1, 2011 pursuant to a
required adjustment in accordance with the Florida Public Service Commission Annual Deflator
Index previously adopted by the Clermont City Council.
Requests for Information
This financial report is designed to provide a general overview of the City of Clermont’s finances
for all those with an interest in the government’s finances. Questions concerning any of the
information should be addressed to the office of the Administrative Services Director, City of
Clermont, P.O. Box 120219, Clermont, Florida 34712.
12
BASIC FINANCIAL STATEMENTS
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET ASSETS
September 30, 2011
Primary Government
Governmental
Activities
Business-type
Activities Total
Assets:
Cash and cash equivalents 18,173,957$ 11,155,288$ 29,329,245$
Investments 3,080,394 8,049,397 11,129,791
Receivables, net 277,290 1,233,230 1,510,520
Inventories 33,873 327,377 361,250
Due from other governments 455,699 1,231 456,930
Internal balances 28,606 (28,606) -
Prepaid costs 302,237 125,194 427,431
Restricted assets:
Cash and cash equivalents - 1,427,468 1,427,468
Investments - 8,149,904 8,149,904
Interest receivable 2,787 64,411 67,198
Bond issuance costs - 363,297 363,297
Capital assets not being depreciated 23,248,3508,423,567 31,671,917
Capital assets being depreciated, net of
accumulated depreciation 15,215,125 63,155,307 78,370,432
Total assets 60,818,318 102,447,065 163,265,383
Liabilities:
Accounts payable and accrued expenses 672,3521,221,1081,893,460
Noncurrent liabilities:
Due within one year 552,221 603,118 1,155,339
Due in more than one year 4,853,675 15,576,222 20,429,897
Total liabilities 6,078,248 17,400,448 23,478,696
Net Assets:
Invested in capital assets, net of related debt 34,893,475 56,430,326 91,323,801
Restricted for:
Capital Improvements - 9,240,407 9,240,407
Community redevelopment 1,658,499 - 1,658,499
Public safety 2,667,477 - 2,667,477
Culture and recreation 312,055 - 312,055
Infrastructure 1,401,692 - 1,401,692
Debt service 494,141 - 494,141
Perpetual care:
Nonexpendable 847,260 - 847,260
Unrestricted 12,465,471 19,375,884 31,841,355
Total net assets 54,740,070$ 85,046,617$ 139,786,687$
The accompanying Notes to Financial Statements are an integral part of this statement.
13
CI
T
Y
O
F
C
L
E
R
M
O
N
T
,
F
L
O
R
I
D
A
ST
A
T
E
M
E
N
T
O
F
A
C
T
I
V
I
T
I
E
S
Fu
n
c
t
i
o
n
s
/
P
r
o
g
r
a
m
s
:
Ex
p
e
n
s
e
s
Ch
a
r
g
e
s
f
o
r
Se
r
v
i
c
e
s
Op
e
r
a
t
i
n
g
G
r
a
n
t
s
an
d
C
o
n
t
r
i
b
u
t
i
o
n
s
Ca
p
i
t
a
l
G
r
a
n
t
s
an
d
Co
n
t
r
i
b
u
t
i
o
n
s
Go
v
e
r
n
m
e
n
t
a
l
Ac
t
i
v
i
t
i
e
s
Bu
s
i
n
e
s
s
-
t
y
p
e
ActivitiesTotal
Go
v
e
r
n
m
e
n
t
a
l
A
c
t
i
v
i
t
i
e
s
:
Ge
n
e
r
a
l
g
o
v
e
r
n
m
e
n
t
3,
6
4
3
,
3
2
1
$
1,
6
9
5
,
5
8
4
$
-
$
-
$
(1
,
9
4
7
,
7
3
7
)
$
-
$
(1,947,737)$
Pu
b
l
i
c
s
a
f
e
t
y
12
,
5
3
0
,
8
4
0
35
4
,
6
6
4
93
0
,
4
2
9
12
8
,
7
8
6
(1
1
,
1
1
6
,
9
6
1
)
-
(11,116,961)
Ph
y
s
i
c
a
l
e
n
v
i
r
o
n
m
e
n
t
27
9
,
2
3
6
-
-
-
(2
7
9
,
2
3
6
)
-
(279,236)
Tr
a
n
s
p
o
r
t
a
t
i
o
n
/
p
u
b
l
i
c
w
o
r
k
s
1,
6
6
1
,
3
2
5
-
30
6
,
1
5
9
-
(1
,
3
5
5
,
1
6
6
)
-
(1,355,166)
Ec
o
n
o
m
i
c
e
n
v
i
r
o
n
m
e
n
t
10
1
,
4
8
6
-
-
-
(1
0
1
,
4
8
6
)
-
(101,486)
Cu
l
t
u
r
e
a
n
d
r
e
c
r
e
a
t
i
o
n
1,
8
2
1
,
8
3
7
53
8
,
9
2
9
-
-
(1
,
2
8
2
,
9
0
8
)
-
(1,282,908)
In
t
e
r
e
s
t
o
n
l
o
n
g
-
t
e
r
m
d
e
b
t
15
6
,
1
8
5
-
-
-
(1
5
6
,
1
8
5
)
-
(156,185)
To
t
a
l
g
o
v
e
r
n
m
e
n
t
a
l
a
c
t
i
v
i
t
i
e
s
20
,
1
9
4
,
2
3
0
2,
5
8
9
,
1
7
7
1,
2
3
6
,
5
8
8
12
8
,
7
8
6
(1
6
,
2
3
9
,
6
7
9
)
-
(16,239,679)
Bu
s
i
n
e
s
s
-
t
y
p
e
a
c
t
i
v
i
t
i
e
s
W
a
t
e
r
4,
4
6
0
,
6
0
5
5,
3
7
6
,
8
9
0
-
28
0
,
3
7
4
-
1
,
1
9
6
,
6
5
9
1,196,659
Se
w
e
r
6,
0
2
1
,
8
9
2
5,
0
6
4
,
5
2
2
-
71
8
,
0
7
2
-
(
2
3
9
,
2
9
8
)
(239,298)
Sa
n
i
t
a
t
i
o
n
2,
3
6
4
,
3
8
2
2,
6
8
8
,
4
7
4
-
-
-
3
2
4
,
0
9
2
324,092
St
or
m
wat
e
r
95
4
,
7
9
9
85
5
,
4
1
8
-
-
-
(
9
9
,
3
8
1
)
(99,381)
To
t
a
l
b
u
s
i
n
e
s
s
-
t
y
p
e
a
c
t
i
v
i
t
i
e
s
13
,
8
0
1
,
6
7
8
13
,
9
8
5
,
3
0
4
-
99
8
,
4
4
6
-
1
,
1
8
2
,
0
7
2
1,182,072
To
t
a
l
p
r
i
m
a
r
y
g
o
v
e
r
n
m
e
n
t
33
,
9
9
5
,
9
0
8
$
16
,
5
7
4
,
4
8
1
$
1,
2
3
6
,
5
8
8
$
1,
1
2
7
,
2
3
2
$
(1
6
,
2
3
9
,
6
7
9
)
1,182,072
(15,057,607)
Ge
n
e
r
a
l
r
e
v
e
n
u
e
s
:
Pr
o
p
e
r
t
y
t
a
x
e
s
5,
9
6
5
,
7
3
1
-
5,965,731
Fr
a
n
c
h
i
s
e
f
e
e
s
2,
2
8
4
,
8
3
9
-
2,284,839
U
t
i
l
i
t
y
t
a
x
e
s
2,
5
6
8
,
1
4
1
-
2,568,141
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
-
u
n
r
e
s
t
r
i
c
t
e
d
4,
6
6
4
,
3
9
3
-
4,664,393
Un
r
e
s
t
r
i
c
t
e
d
i
n
v
e
s
t
m
e
n
t
e
a
r
n
i
n
g
s
14
8
,
1
9
5
145,153
293,348
Mi
s
c
e
l
l
a
n
e
o
u
s
32
9
,
6
6
2
-
329,662
Tr
a
n
s
f
e
r
s
52
0
,
3
9
6
(520,396)
-
To
t
a
l
g
e
n
e
r
a
l
r
e
v
e
n
u
e
s
a
n
d
t
r
a
n
s
f
e
r
s
16
,
4
8
1
,
3
5
7
(375,243)
16,106,114
Ch
a
n
g
e
i
n
n
e
t
a
s
s
e
t
s
24
1
,
6
7
8
806,829
1,048,507
Ne
t
a
s
s
e
t
s
-
b
e
g
i
n
n
i
n
g
54
,
4
9
8
,
3
9
2
84,239,788
138,738,180
Ne
t
a
s
s
e
t
s
-
e
n
d
i
n
g
54
,
7
4
0
,
0
7
0
$
85,046,617
$
139,786,687$
Ye
a
r
E
n
d
e
d
S
e
p
t
e
m
b
e
r
3
0
,
2
0
1
1
Pr
o
g
r
a
m
R
e
v
e
n
u
e
C
h
a
n
g
e
s
i
n
N
e
t
A
s
s
e
t
s
Pr
i
m
a
r
y
G
o
v
e
r
n
m
e
n
t
Ne
t
(
E
x
p
e
n
s
e
)
R
e
v
e
n
u
e
a
n
d
Th
e
a
c
c
o
m
p
a
n
y
i
n
g
N
o
t
e
s
t
o
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
r
e
a
n
i
n
t
e
g
r
a
l
p
a
r
t
o
f
t
h
i
s
s
t
a
t
e
m
e
n
t
.
14
GeneralCapital Projects
Community
Redevelopment
Special Revenue
Other
Governmental
Funds
Total
Governmental
Funds
Assets:
Cash and cash equivalents 7,996,599$ 2,876,268$ 1,658,499$ 5,452,461$ 17,983,827$
Investments 3,080,394 - - - 3,080,394
Receivables, net 277,913 - - - 277,913
Inventories, at cost 33,873 - - - 33,873
Due from other governments 328,946 - - 126,753 455,699
Prepaid costs 301,112 - 18 1,107 302,237
Total assets 12,018,837$ 2,876,268$ 1,658,517$ 5,580,321$ 22,133,943$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 288,945$ 22,521$ -$ 32,301$ 343,767$
Deferred revenue 96,278 - - - 96,278
Accrued liabilities 164,086 - - - 164,086
Total liabilities 549,309 22,521 - 32,301 604,131
Fund balances:
Non spendable 334,985 - 18 848,367 1,183,370
Restricted 174,596 - 1,658,499 4,700,769 6,533,864
Assigned 912,137 2,853,747 - - 3,765,884
Unassigned 10,047,810 - - (1,116) 10,046,694
Total fund balances 11,469,528 2,853,747 1,658,517 5,548,020 21,529,812
Total liabilities and
fund balances 12,018,837$ 2,876,268$ 1,658,517$ 5,580,321$
38,463,475
(50,900)
96,278
107,301
(5,405,896)
54,740,070$
CITY OF CLERMONT, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2011
Amounts reported for governmental activities in the Statement of Net Assets are different
because:
Other long-term assets are not available to pay for current period expenditures and, therefore
are deferred in the funds
Capital assets used in governmental activities are not financial resources and, therefore, are
not reported in the funds.
Accrued interest payable is not due in the current period and therefore is not reported in the
funds.
The assets and liabilities of certain internal service funds are not included in the fund financial
statement, but are included in the governmental activities of the Statement of Net Assets.
Long-term liabilities are not due and payable in the current period and therefore are not reported
in the funds.
Net Assets of Governmental Activities in the Statement of Net Assets
The accompanying Notes to Financial Statements are an integral part of this statement.
15
General Capital Projects
Community
Redevelopment
Special Revenue
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:
Taxes 10,586,864$ -$ 231,847$ -$ 10,818,711$
Licenses and permits 236,659 - - 291,199 527,858
Intergovernmental revenues 4,160,335 - - 1,899,202 6,059,537
Charges for services 975,802 - - 37,514 1,013,316
Fines and forfeitures 185,614 - - - 185,614
Impact fees/special assessments - - - 582,282 582,282
Investment earnings 98,072 7,127 8,632 34,364 148,195
Miscellaneous 561,375 - - 50,400 611,775
Total revenues 16,804,721 7,127 240,479 2,894,961 19,947,288
Expenditures:
Current:
General government 2,720,658 144,760 - 406,377 3,271,795
Public safety 11,452,451 41,901 - 130,973 11,625,325
Physical environment 274,738 - - - 274,738
Transportation 1,052,759 - - 418,917 1,471,676
Economic environment 47,592 - 54,696 - 102,288
Culture and recreation 1,688,432 58,878 - 44,774 1,792,084
Debt Service:
Principal retirement - - - 470,000 470,000
Interest and fiscal charges - - - 162,256 162,256
Capital Outlay:
General government - 6,671 - - 6,671
Culture and recreation - 1,916,484 - - 1,916,484
Total expenditures 17,236,630 2,168,694 54,696 1,633,297 21,093,317
Excess (Deficiency) of Revenues
Over Expenditures (431,909) (2,161,567) 185,783 1,261,664 (1,146,029)
Other Financing Sources (Uses):
Transfers in 541,868 2,077,132 - 655,277 3,274,277
Transfers out (243,966) (39,440) - (2,492,755) (2,776,161)
Total other financing sources (uses)297,902 2,037,692 - (1,837,478) 498,116
Net Change in Fund Balances (134,007) (123,875) 185,783 (575,814) (647,913)
Fund Balances - Beginning 11,603,535 2,977,622 1,472,734 6,123,834 22,177,725
Fund Balances - Ending 11,469,528$ 2,853,747$ 1,658,517$ 5,548,020$ 21,529,812$
Year Ended September 30, 2011
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
The accompanying Notes to Financial Statements are an integral part of this statement.
16
Net change in fund balances - total governmental funds:(647,913)$
Amounts reported for Governmental Activities in the Statement of Activities are different
because:
Governmental funds report outlays for capital assets as expenditures because such
outlays use current financial resources. In contrast, the Statement of Activities
reports only a portion of the outlay as expense. The outlay is allocated over the
assets' estimated useful lives as depreciation expense for the period.599,739
The net effect of sales of capital assets is to decrease net assets.(15,344)
Revenue reported in the funds must be eliminated from the statement of activities
since revenue was recognized in a prior year (31,776)
Governmental funds report bond proceeds as current financial resources. In contrast,
the Statement of Activities treats such issuance of debt as a liability. Governmental
funds report repayment of bond principal as an expenditure, In contrast, the Statement
of Activities treats such repayments as a reduction in long-term liabilities. This is the
amount by which repayments exceeded proceeds. 470,000
Some expenses reported in the statement of activities do not require the use of current
financial resources and these are not reported as expenditures in governmental funds.(419,864)
Contributions of capital assets from proprietary funds 22,280
Internal service funds are used by management to charge the costs of certain
activities, such as fleet maintenance and information technology, to individual funds.
The net revenue (expense) of certain internal service funds is reported with
governmental activities.264,556
Change in net assets of governmental activities 241,678$
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Year Ended September 30, 2011
CITY OF CLERMONT, FLORIDA
The accompanying Notes to Financial Statements are an integral part of this statement.
17
Budgeted Amounts
Actual
Amounts,
Budgetary
Basis
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Taxes 9,894,072$ 9,894,072$ 10,586,864$ 692,792$
Licenses and permits 209,800 209,800 236,659 26,859
Intergovernmental revenues 3,568,434 4,186,602 3,774,759 (411,843)
Charges for services 987,717 987,717 975,802 (11,915)
Fines and forfeitures 145,000 145,000 185,614 40,614
Investment earnings 78,750 78,750 98,072 19,322
Miscellaneous 303,750 303,750 561,375 257,625
Total revenues 15,187,523 15,805,691 16,419,145 613,454
Expenditures:
Current:
General government:
City council 27,233 27,233 24,184 3,049
City clerk 208,829 211,488 198,040 13,448
City manager 403,841 409,223 356,975 52,248
Administrative services 1,153,838 1,171,356 1,142,583 28,773
Legal services 113,000 163,616 160,150 3,466
Planning & zoning 545,676 558,923 455,493 103,430
Engineering 94,413 97,694 94,926 2,768
Other general government 297,535 322,535 288,307 34,228
2,844,365 2,962,068 2,720,658 241,410
Public Safety:
Law enforcement 6,127,547 6,562,158 5,965,016 597,142
Fire control 4,755,015 5,277,457 5,101,859 175,598
10,882,562 11,839,615 11,066,875 772,740
Physical environment 292,420297,449274,738 22,711
Transportation 1,187,0271,215,0601,052,759162,301
Economic environment 63,385 63,385 47,592 15,793
Culture and recreation 1,626,019 1,721,023 1,688,432 32,591
Total expenditures 16,895,778 18,098,600 16,851,054 1,247,546
GENERAL FUND
Year Ended September 30, 2011
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
The accompanying Notes to Financial Statements are an integral part of this statement.
18
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL (CONTINUED)
Budgeted Amounts
Actual
Amounts,
Budgetary
Basis
Variance with
Final Budget -
Positive
(Negative)
Original Final
Over Expenditures (1,708,255) (2,292,909) (431,909) 1,861,000
Other Financing Sources (Uses):
Transfers in 411,000 450,440 541,868 91,428
Transfers out (224,547) (243,966) (243,966) -
Total other financing sources (uses)186,453 206,474 297,902 91,428
Net Change in Fund Balance (1,521,802) (2,086,435) (134,007) 1,952,428
Fund Balance - Beginning 11,603,535 11,603,535 11,603,535 -
Fund Balance - Ending 10,081,733$ 9,517,100$ 11,469,528$ 1,952,428$
Excess (Deficiency) of Revenues
CITY OF CLERMONT, FLORIDA
GENERAL FUND
Year Ended September 30, 2011
The accompanying Notes to Financial Statements are an integral part of this statement.
19
20
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
OriginalFinal
Revenues:
Taxes231,060$ 231,060$ 231,847$ 787$
Investment earnings 3,750 3,750 8,632 4,882
Total revenues 234,810 234,810 240,479 5,669
Expenditures:
Economic environment:
Economic development 1,529,5611,529,881 54,696 1,475,185
Total expenditures 1,529,561 1,529,881 54,696 1,475,185
Excess (Deficiency) of Revenues
Over Expenditures (1,294,751) (1,295,071) 185,783 1,480,854
Net Change in Fund Balances (1,294,751) (1,295,071) 185,783 1,480,854
Fund Balances - Beginning 1,472,734 1,472,734 1,472,734 -
Fund Balances - Ending 177,983$ 177,663$ 1,658,517$ 1,480,854$
CITY OF CLERMONT, FLORIDA
COMMUNITY REDEVELOPMENT SPECIAL REVENUE FUND
Year Ended September 30, 2011
The accompanying Notes to Financial Statements are an integral part of this statement.
21
Governmental
Activities-
Water Sewer Sanitation Stormwater Total
Internal Service
Fund
Assets:
Current assets:
Cash and cash equivalents 2,929,130$ 3,355,040$ 3,205,028$ 1,666,090$ 11,155,288$ 190,130$
Investments 8,049,397 - - - 8,049,397 -
Restricted cash and cash equivalents 733,649 693,819 - - 1,427,468 -
Accounts receivable, net 452,951 457,741 244,021 78,517 1,233,230 2,164
Receivables from other governments - - 1,231 - 1,231 -
Inventories 295,905 31,472 - - 327,377 -
Prepaid expenses 46,491 45,814 23,681 9,208 125,194 -
Total current assets 12,507,523 4,583,886 3,473,961 1,753,815 22,319,185 192,294
Non-current assets:
Restricted investments - 8,149,904 - - 8,149,904 -
Interest receivable 32,129 32,282 - - 64,411 -
Bond issuance costs 130,787 232,510 - - 363,297 -
Capital assets:
Land , buildings and equipment 26,876,127 53,443,647 2,494,346 4,058,862 86,872,982 -
Construction in progress 3,067,792 3,455,437 - 48,855 6,572,084 -
Less accumulated depreciation (6,967,823) (12,236,921) (1,583,811) (1,077,637) (21,866,192) -
Total capital assets (net of
accumulated depreciation)22,976,096 44,662,163 910,535 3,030,080 71,578,874 -
Total non-current assets 23,139,012 53,076,859 910,535 3,030,080 80,156,486 -
Total assets 35,646,535 57,660,745 4,384,496 4,783,895 102,475,671 192,294
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
September 30, 2011
Business-type Activities-Enterprise Funds
The accompanying Notes to Financial Statements are an integral part of this statement
22
Liabilities:
Current liabilities:
Accounts payable 150,324 287,126 69,045 92,025 598,520 113,599
Salaries payable 28,046 27,373 13,678 8,024 77,121 -
Accrued interest payable 72,753 129,338 - - 202,091 -
Compensated absences 11,530 7,013 2,493 2,082 23,118 -
Customer deposits payable 343,376 - - - 343,376 -
Revenue bonds payable-current 208,800 371,200 - - 580,000 -
Total current liabilities 814,829 822,050 85,216 102,131 1,824,226 113,599
Non-current liabilities:
Compensated absences 103,772 63,116 22,436 18,741 208,065 -
Other post employment benefits 183,181 121,019 100,430 31,682 436,312 -
Revenue bonds payable 5,381,131 9,550,714 - - 14,931,845 -
Total non-current liabilities 5,668,084 9,734,849 122,866 50,423 15,576,222 -
Total liabilities 6,482,913 10,556,899 208,082 152,554 17,400,448 113,599
Net Assets:
Invested in capital assets, net of related debt 17,516,952 34,972,759 910,535 3,030,080 56,430,326 -
Restricted for capital improvements 383,463 8,856,944 - - 9,240,407 -
Unrestricted 11,263,207 3,274,143 3,265,879 1,601,261 19,404,490 78,695
Total net assets 29,163,622$ 47,103,846$ 4,176,414$ 4,631,341$ 85,075,223 78,695$
(28,606)
Total net assets per Government-Wide financial statements 85,046,617$
The assets and liabilities of certain internal service funds are not included in the fund financial
statement, but are included in the Business Activities of the Statement of Net Assets.
The accompanying Notes to Financial Statements are an integral part of this statement
23
24
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
Governmental
Activities-
Water Sewer Sanitation Stormwater Total
Internal Service
Fund
Operating Revenues:
Charges for services 5,045,721$ 5,064,522$ 2,677,531$ 847,371$ 13,635,145$ 3,285,937$
Miscellaneous 331,169 - 10,943 8,047 350,159 1,083
Total operating revenues 5,376,890 5,064,522 2,688,474 855,418 13,985,304 3,287,020
Operating Expenses:
Personal services 1,672,238 1,486,320 840,305 465,558 4,464,421 -
Utilities 459,731 679,152 1,701 - 1,140,584 -
Dump fees - 130,590 537,741 7,982 676,313 -
Administrative services 331,133 310,933 146,646 38,360 827,072 -
Repairs and maintenance 383,259 302,000 212,962 54,406 952,627 -
Depreciation and amortization 787,791 2,032,894 313,732 284,785 3,419,202 -
Professional services 237,083 322,628 18,310 50,182 628,203 -
Insurance claims and expenses 160,204 167,693 23,625 11,905 363,427 2,928,460
Other supplies and expenses 240,188 197,440 293,009 48,791 779,428 -
Total operating expenses 4,271,627 5,629,650 2,388,031 961,969 13,251,277 2,928,460
Operating income (loss)1,105,263 (565,128) 300,443 (106,551) 734,027 358,560
Non-Operating Revenues (Expenses):
Investment income 51,601 68,282 16,009 9,261 145,153 -
Interest expense (237,478) (423,003) - - (660,481) -
Gain (loss) on disposal of capital assets 14,476 - 1,600 - 16,076 -
Total non-operating revenue (expenses)(171,401) (354,721) 17,609 9,261 (499,252) -
Income (loss) before contributions and transfers 933,862 (919,849) 318,052 (97,290) 234,775 358,560
Capital contributions 280,374 718,072 - - 998,446 -
Transfers out (519,636) (760) - - (520,396) -
Change in net assets 694,600 (202,537) 318,052 (97,290) 712,825 358,560
Total Net Assets - Beginning 28,469,022 47,306,383 3,858,362 4,728,631 (279,865)
Total Net Assets - Ending 29,163,622$ 47,103,846$ 4,176,414$ 4,631,341$ 78,695$
94,004
Change in Business-Type Activities in Net Assets per Government-Wide Financial Statements 806,829$
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue
(expense) of certain internal service funds is reported with Business Activities.
Business-type Activities-Enterprise Funds
Year Ended September 30, 2011
The accompanying Notes to Financial Statements are an integral part of this statement.
25
Governmental
Activities-
Internal Service
Water Sewer Sanitation Stormwater Total Fund
Cash Flows from Operating Activities:
Receipts from customers 5,411,406$ 5,052,560$ 2,685,598$ 854,751$ 14,004,315$ -$
Receipts from internal services provided - - - - - 3,284,884
Payments to suppliers (1,944,468) (2,209,180) (1,225,454) (149,117) (5,528,219) (2,922,797)
Payments to employees (1,683,966) (1,490,577) (829,417) (484,653) (4,488,613) -
Net cash provided (used) by operating
activities 1,782,972 1,352,803 630,727 220,981 3,987,483 362,087
Cash Flows from Non-Capital
Financing Activities:
Decrease due to other funds - - - - - (230,957)
Decrease in due from other governments - - 139 - 139 -
Transfers out (498,116) - - - (498,116) -
Net cash provided (used) by non-capital
financing activities (498,116) - 139 - (497,977) (230,957)
Cash Flows from Capital and Related
Financing Activities:
Acquisition of capital assets (2,420,220) (761,797) (238,711) (425,973) (3,846,701) -
Sale of capital assets 14,476 - 1,600 16,076 -
Interest paid on long-term debt (221,810) (394,335) - - (616,145) -
Principal paid on debt (192,600) (342,400) (535,000) -
Fees and assessments received 280,374 718,072 - - 998,446 -
Net cash provided (used) by capital and
related financing activities (2,539,780) (780,460) (237,111) (425,973) (3,983,324) -
Business-Type Activities-Enterprise Funds
CITY OF CLERMONT, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended September 30, 2011
The accompanying Notes to Financial Statements are an integral part of these statements.
26
Ca
s
h
F
l
o
w
s
f
r
o
m
I
n
v
e
s
t
i
n
g
A
c
t
i
v
i
t
i
e
s
:
S
a
l
e
(
P
u
r
c
h
a
s
e
)
o
f
i
n
v
e
s
t
m
e
n
t
s
2,
8
2
8
,
2
3
6
(5
4
2
,
9
8
3
)
-
-
2
,
2
8
5
,
2
5
3
-
I
n
v
e
s
t
m
e
n
t
i
n
c
o
m
e
10
9
,
4
9
1
10
5
,
1
5
9
16
,
0
0
9
9,
2
6
1
239,920
-
N
e
t
c
a
s
h
p
r
o
v
i
d
e
d
b
y
i
n
v
e
s
t
i
n
g
a
c
t
i
v
i
t
i
e
s
2,
9
3
7
,
7
2
7
(4
3
7
,
8
2
4
)
16
,
0
0
9
9,
2
6
1
2,
5
2
5
,
1
7
3
-
Ne
t
I
n
c
r
e
a
s
e
(
D
e
c
r
e
a
s
e
)
i
n
C
a
s
h
a
n
d
C
a
s
h
E
q
u
i
v
a
l
e
n
t
s
1,
6
8
2
,
8
0
3
13
4
,
5
1
9
40
9
,
7
6
4
(1
9
5
,
7
3
1
)
2,
0
3
1
,
3
5
5
131,130
Ca
s
h
a
n
d
C
a
s
h
E
q
u
i
v
a
l
e
n
t
s
-
B
e
g
i
n
n
i
n
g
1,
9
7
9
,
9
7
6
3,
9
1
4
,
3
4
0
2,
7
9
5
,
2
6
4
1,
8
6
1
,
8
2
1
10
,
5
5
1
,
4
0
1
59,000
Ca
s
h
a
n
d
C
a
s
h
E
q
u
i
v
a
l
e
n
t
s
-
E
n
d
3,
6
6
2
,
7
7
9
$
4,
0
4
8
,
8
5
9
$
3,
2
0
5
,
0
2
8
$
1,
6
6
6
,
0
9
0
$
12
,
5
8
2
,
7
5
6
$
190,130$
Cl
a
s
s
i
f
i
e
d
A
s
:
C
a
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
2,
9
2
9
,
1
3
0
$
3,
3
5
5
,
0
4
0
$
3,
2
0
5
,
0
2
8
$
1,
6
6
6
,
0
9
0
$
11
,
1
5
5
,
2
8
8
$
190,130$
R
e
s
t
r
i
c
t
e
d
c
a
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
73
3
,
6
4
9
69
3
,
8
1
9
-
-
1
,
4
2
7
,
4
6
8
-
T
o
t
a
l
3,
6
6
2
,
7
7
9
$
4,
0
4
8
,
8
5
9
$
3,
2
0
5
,
0
2
8
$
1,
6
6
6
,
0
9
0
$
12
,
5
8
2
,
7
5
6
$
190,130$
Re
c
o
n
c
i
l
i
a
t
i
o
n
o
f
O
p
e
r
a
t
i
n
g
I
n
c
o
m
e
(
L
o
s
s
)
t
o
N
e
t
C
a
s
h
P
r
o
v
i
d
e
d
B
y
O
p
e
r
a
t
i
n
g
A
c
t
i
v
i
t
i
e
s
O
p
e
r
a
t
i
n
g
i
n
c
o
m
e
(
l
o
s
s
)
1,
1
0
5
,
2
6
3
$
(5
6
5
,
1
2
8
)
$
30
0
,
4
4
3
$
(1
0
6
,
5
5
1
)
$
734,027
$
358,560$
Ad
j
u
s
t
m
e
n
t
s
N
o
t
A
f
f
e
c
t
i
n
g
C
a
s
h
:
D
e
p
r
e
c
i
a
t
i
o
n
a
n
d
a
m
o
r
t
i
z
a
t
i
o
n
78
7
,
7
9
1
2
,
0
3
2
,
8
9
4
31
3
,
7
3
2
28
4
,
7
8
5
3
,
4
1
9
,
2
0
2
-
Ch
a
n
g
e
i
n
A
s
s
e
t
s
a
n
d
L
i
a
b
i
l
i
t
i
e
s
:
D
e
c
r
e
a
s
e
(
I
n
c
r
e
a
s
e
)
i
n
a
c
c
t
s
r
e
c
e
i
v
a
b
l
e
12
,
6
5
3
(1
1
,
9
6
2
)
(2
,
8
7
6
)
(6
6
7
)
(2,852)
(2,136)
D
e
c
r
e
a
s
e
(
I
n
c
r
e
a
s
e
)
i
n
c
u
s
t
o
m
e
r
d
e
p
o
s
i
t
s
21
,
8
6
3
-
-
-
21,863
-
D
e
c
r
e
a
s
e
(
I
n
c
r
e
a
s
e
)
i
n
p
r
e
p
a
i
d
c
o
s
t
s
(4
,
4
9
1
)
5,
7
1
5
(4
,
6
1
7
)
(3
,
5
7
8
)
(6,971)
-
D
e
c
r
e
a
s
e
(
I
n
c
r
e
a
s
e
)
i
n
i
n
v
e
n
t
o
r
y
85
,
6
6
9
(2
,
9
3
6
)
-
-
82,733
-
I
n
c
r
e
a
s
e
(
d
e
c
r
e
a
s
e
)
i
n
a
c
c
o
u
n
t
s
p
a
y
a
b
l
e
(2
1
4
,
0
4
8
)
(1
0
1
,
5
2
3
)
13
,
1
5
7
66
,
0
8
7
(2
3
6
,
3
2
7
)
5,663
I
n
c
r
e
a
s
e
(
d
e
c
r
e
a
s
e
)
i
n
a
c
c
r
u
e
d
l
i
a
b
i
l
i
t
i
e
s
(1
1
,
7
2
8
)
(4
,
2
5
7
)
10
,
8
8
8
(1
9
,
0
9
5
)
(24,192)
-
T
o
t
a
l
a
d
j
u
s
t
m
e
n
t
s
67
7
,
7
0
9
1,
9
1
7
,
9
3
1
33
0
,
2
8
4
32
7
,
5
3
2
3,
2
5
3
,
4
5
6
3,527
Ne
t
C
a
s
h
P
r
o
v
i
d
e
d
(
U
s
e
d
)
b
y
O
p
e
r
a
t
i
n
g
A
c
t
i
v
i
t
i
e
s
1,
7
8
2
,
9
7
2
$
1,
3
5
2
,
8
0
3
$
63
0
,
7
2
7
$
22
0
,
9
8
1
$
3,
9
8
7
,
4
8
3
$
362,087$
No
n
c
a
s
h
i
n
v
e
s
t
i
n
g
,
c
a
p
i
t
a
l
,
a
n
d
f
i
n
a
n
c
i
n
g
a
c
t
i
v
i
t
i
e
s
:
De
c
r
e
a
s
e
i
n
f
a
i
r
v
a
l
u
e
o
f
i
n
v
e
s
t
m
e
n
t
s
(2
6
,
5
3
1
)
$
(4
8
,
6
2
5
)
$
-
$
-
$
(
7
5
,
1
5
6
)
$
-$
Tr
a
n
s
f
e
r
o
f
c
a
p
i
t
a
l
a
s
s
e
t
s
(2
1
,
5
2
0
)
(7
6
0
)
-
-
(
2
2
,
2
8
0
)
-
Th
e
a
c
c
o
m
p
a
n
y
i
n
g
N
o
t
e
s
t
o
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
r
e
a
n
i
n
t
e
g
r
a
l
p
a
r
t
o
f
t
h
e
s
e
s
t
a
t
e
m
e
n
t
s
.
27
CITY OF CLERMONT, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2011
Total Employee
Pension Funds
Assets:
Cash and cash equivalents $ 248,149
Receivables:
Employer contribution receivable 3,051
Due from other governments 5,998
Total receivables 9,049
Investments:
U.S. Government & other debt securities 5,941,821
Equities 11,754,867
Total investments 17,696,688
Total assets 17,953,886
Liabilities:
Refunds payable and other 169,874
Total liabilities 169,874
Net Assets Held in Trust
for Pension Benefits 17,784,012$
The accompanying Notes to Financial Statements are an integral part of this statement.
28
CITY OF CLERMONT, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Year Ended September 30, 2011
Total Employee
Pension Funds
Additions:
Contributions:
Employer 1,821,218$
Plan members 125,040
State 385,576
Total contributions 2,331,834
Investment earnings:
Net increase in fair value of investments 54,988
Total net investment earnings 54,988
Total additions 2,386,822
Deductions:
Benefits/distributions 656,649
Administrative 66,668
Total deductions 723,317
Change in Net Assets 1,663,505
Net Assets - Beginning 16,120,507
Net Assets - End 17,784,012$
The accompanying Notes to Financial Statements are an integral part of this statement
29
30
NOTES TO FINANCIAL STATEMENTS
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 1 - Summary of Significant Accounting Policies:
A. Reporting Entity
The City of Clermont, Florida (the City) is a political subdivision of the State of Florida located in
Lake County. The City of Clermont was incorporated under State law in December 1916 and
operates under the council-manager form of government under its charter adopted pursuant to
H.B. 2223, Ch.67-1217 Special Acts, of the State of Florida. The legislative branch of the City
is composed of a Mayor and four (4) members elected Council. The City Council is
responsible for the establishment and adoption of policy. The execution of such policy is the
responsibility of the Council appointed City Manager.
In evaluating how to define the government, for financial reporting purposes, the City has
considered all potential component units. The definition of the reporting entity is based
primarily on the notion of financial accountability. A primary government is financially
accountable for the organizations that make up its legal entity. It is also financially accountable
for legally separate organizations if its officials appoint a voting majority of an organization’s
governing body, and either it is able to impose its will on that organization or there is a potential
for the organization to provide specific financial benefits to, or to impose specific financial
burdens on, the primary government. A primary government may also be financially
accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects or activities of, or the level of services performed or provided
by, the organization. A financial benefit or burden relationship exists if the primary government
(a) is entitled to the organizations’ resources; (b) is legally obligated or has otherwise assumed
the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is
obligated in some manner for the debt of the organization. In applying the above criteria, the
City has one blended component unit as follows:
The City of Clermont Community Redevelopment Fund
The City of Clermont created the Downtown Redevelopment Agency in May of 1997. This is a
dependent taxing district established in accordance with Chapter 163, Part III, Florida Statutes.
Notification to affected taxing agency was done in compliance with Chapter 163.346, Part III,
Florida Statutes. The incremental annual increase in tax over the base years will be used to
fund projects designed to enhance and improve the described area. The City Council, being
the duly elected governmental body for the designated area, passed Resolution 97-950, which
established the City of Clermont as the Redevelopment Agency for the purpose of carrying out
the community redevelopment programs and plans within the area. Through Ordinance 359-M
the City established the Community Redevelopment Trust Fund to account for all transactions
generated by this special revenue fund. The City of Clermont Community Redevelopment
Fund is presented as a blended component unit, since the City Council is the governing board.
31
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 1 - Summary of Significant Accounting Policies (Continued):
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the
statement of changes in net assets) report information on all of the nonfiduciary activities of
the City. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon enough thereafter
to pay liabilities of the current period. For this purpose, the government considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
32
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available
only when cash is received by the City.
The government reports the following funds:
Major Governmental Funds
The General Fund is the government’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
Capital Projects Fund account for financial resources segregated for the acquisition
or construction of major capital facilities.
The Community Redevelopment Fund was established as a dependent taxing
district. The incremental annual increase in tax over the base years will be used to
fund projects designed to enhance and improve the described area.
Non-Major Governmental Fund Types
Special Revenue Funds account for the proceeds of specific revenue sources that
are legally restricted or committed to expenditures for specified purposes other than
debt service or capital projects.
Debt Service Fund is used to account for the accumulation of resources for the
payment of principal and interest on certain long-term debt.
Cemetery Perpetual Care accounts for activities of the City relative to cemetery
maintenance at specified locations. Fund resources are restricted. Only earnings on
invested resources may be used to support these activities.
Major Proprietary Funds
Water Fund is used to account for the operations of the City’s water system, which is
financed in a manner similar to private business enterprises, where the costs,
including depreciation, of providing services to the general public on an ongoing
basis are financed primarily through user charges.
33
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Major Proprietary Funds (Continued)
Sewer Fund is used to account for the operations of the City’s sewer system, which
is financed in a manner similar to private business enterprises, where the costs,
including depreciation, of providing services to the general public on an ongoing
basis are financed primarily through user charges.
Sanitation Fund is used to account for the fiscal activities of the City’s refuse
collection and disposal operation.
Non-Major Proprietary Funds
Stormwater Fund (Enterprise Fund) is used to account for the fiscal activities of the
City’s stormwater drainage operation, as well as the funding and payment of related
debt.
Internal Service Fund is used to account for the costs of group insurance which are
charged to other departments on a cost reimbursement basis.
Fiduciary Funds
Pension Trust Funds account for activities of police officers, firefighters and general
employees retirement plans which accumulate resources for pension benefit
payments to qualified employees.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of
the Governmental Accounting Standards Board. Governments also have the option of
following subsequent private-sector guidance for their business-type activities and
enterprise funds, subject to this same limitation. The government has elected not to follow
subsequent private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are other charges between the
City’s water and sewer function and various other functions of the government. Elimination
of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
34
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than as program revenues. Likewise, general revenues
include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the City’s water, sewer, sanitation and stormwater utility
funds are charges to customers for sales and services. The City also recognizes as
operating revenue the meter fees intended to recover the cost of connecting new customers
to the system. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government’s
policy to use restricted resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
The government’s cash and cash equivalents are considered to be cash on
hand, demand deposits, and short-term investments with original maturities of
three months or less from the date of acquisition.
Investments of the City are reported at fair value. The City’s investments consist
of investments authorized per their investment policy adopted in accordance with
Section 218.415, Florida Statutes. The City has implemented Government
Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment
Risk Disclosures.
2. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either “due to/from
other funds” (i.e., the current portion of interfund loans) or “advances to/from
other funds” (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as “due to/from other funds.”
35
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
2. Receivables and Payables - (Continued)
Any residual balances outstanding between the governmental activities and
business-type activities are reported in the government-wide financial statements
as “internal balances”.
Advances between funds, as reported in the fund financial statements, are offset
by a non-spendable fund balance in applicable governmental funds to indicate
that they are not available for appropriation and are not expendable available
financial resources.
All receivables are shown net of an allowance for uncollectables. The County
bills and collects property taxes and remits them to the City. City property tax
revenues are recognized when levied to the extent that they result in current
receivables.
All property is reassessed according to its fair value on the lien date, or January
1 of each year. Taxes are levied on October 1 of each year. Discounts are
allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January, and 1% in the month of
February. The taxes paid in March are without discount. All unpaid taxes
become delinquent on April 1 following the year in which they are assessed. On
or around May 31 following the tax year, certificates are sold for all delinquent
taxes on real property.
3. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method.
Inventories of governmental funds are recorded as expenditures when consumed
rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items in both government-wide and fund financial
statements. These are recorded as expenditures when consumed rather than
when purchased.
4. Restricted Assets
Certain proceeds of the City’s enterprise fund revenue bonds, as well as certain
resources set aside for their repayment, are classified as restricted assets on the
balance sheet because they are maintained in separate accounts and their use is
limited by applicable bond covenants. Assets so designated are identified as
restricted assets on the balance sheet.
36
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
5. Capital Assets
Capital assets, which include property, plant, equipment, intangible and
infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are
reported in the applicable governmental or business-type activities columns in
the government-wide financial statements. Capital assets are defined by the City
as assets with an initial, individual cost of $1,000 or more and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of
business-type activities is included as part of the capitalized value of the assets
constructed.
Capital assets of the City are depreciated using the straight line method over the
following estimated useful lives:
Assets Years
Buildings 10-50
Improvements 15-50
Infrastructure 30-50
Equipment & machinery 3-15
Intangible assets 3-15
6. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused
vacation and sick pay benefits. All vacation pay is accrued when incurred in the
government-wide and proprietary financial statements. A portion of sick pay is
accrued for employees with at least ten (10) years of service. A liability for these
amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements. For
governmental activities, compensated absences, net pension obligations, and net
other postemployment benefit obligations are generally liquidated by the general
fund.
37
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
7. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the
fund financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities, business-type
activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of
the bonds using the effective interest method. Bonds payable are reported net of
the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond
premiums and discounts, as well as bond issuance costs, during the current
period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
8. Fund Equity
During 2011, the City implemented GASB 54. This statement establishes fund
balance classifications that comprise a hierarchy based primarily on the extent to
which a government is bound to observe constraints imposed upon the use of
resources reported in governmental funds. Fund balance classifications under
GASB 54 are Nonspendable, Restricted, Committed, Assigned and Unassigned.
These classifications reflect not only the nature of the funds, but also provide
clarity to the level of restriction placed upon fund balance. Fund balance can
have different levels of restraint, such as external versus internal compliance
requirements. Unassigned fund balance is a residual classification within the
General Fund. The General Fund should be the only fund that reports a positive
unassigned fund balance. In all other funds, unassigned is limited to negative
residual fund balance. For further details of the various fund balance
classifications refer to Note 13.
38
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 2 - Reconciliation of Government-Wide and Fund Financial Statements:
A. Explanation of Certain Differences Between the Governmental Fund Statement of
Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide
Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund
balances includes a reconciliation between net changes in fund balances - total
governmental funds and changes in net assets of governmental activities as reported in the
government-wide statement of activities. One element of that reconciliation explains that
“Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense.” The details of this $599,739 difference are as follows:
Capital outlay 2,605,290$
Depreciation expense (2,005,551)
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities 599,739$
Another element of that reconciliation states that “the issuance of long-term debt (e.g.,
bonds, leases) provides current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net assets.” The
details of this $470,000 difference are as follows:
Principal repayment 470,000$
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities 470,000$
Another element of that reconciliation states that “Some expenses reported in the
statement of activities do not require the use of current financial resources and therefore
are not reported as expenditures in governmental funds.” The details of this difference are
as follows:
Compensated absences (19,352)$
Other post employment benefits (406,583)
Accrued interest payable 6,071
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities (419,864)$
39
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 3 - Stewardship, Compliance, and Accountability:
A. Budgetary Information -
The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
(1) Prior to the end of the fiscal year, the City Manager submits to the City Council a
proposed operating budget for the fiscal year commencing the following October
1. The operating budget includes proposed expenditures and the means of
financing them.
(2) Budget workshops are scheduled as needed.
(3) The general summary of the budget and notice of public hearing is published in
the local newspaper.
(4) Public hearings are conducted to obtain taxpayer comments.
(5) Prior to October 1, the budgets are legally enacted through passage of a
resolution.
(6) The City Manager is authorized to transfer budgeted amounts within
departments; however, any revisions that alter the total appropriations of any
department must be approved by the City Council.
(7) The level of classification detail at which expenditures may not legally exceed
appropriations is the department level.
(8) Appropriations lapse at the close of the fiscal year to the extent they have not
been expended. Encumbrance accounting is not used by the City.
(9) Budgets are adopted for the general fund, special revenue funds, debt service
funds and the capital projects fund on a basis consistent with generally accepted
accounting principles, except as described below under Budget Basis of
Accounting. Budgets are also adopted for the enterprise funds: however, these
data are not presented under generally accepted accounting principles.
(10) The City Council, by Ordinance or Resolution, may make supplemental
appropriations in excess of those originally estimated for the year up to the
amount of available revenues. Budgeted amounts presented in the
accompanying financial statements have been adjusted for legally authorized
revisions.
40
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 3 - Stewardship, Compliance, and Accountability (Continued):
B. Budgetary Basis of Accounting -
The city includes a portion of the prior year’s fund balances represented by unappropriated
liquid assets remaining in the fund as budgeted revenue in the succeeding year. The
results of operations on a GAAP basis do not recognize the fund balance allocation as
revenue as it represents prior periods’ excess of revenues over expenditures. The City
does not budget for capital outlay expenditures and other financing sources related to the
acquisition of assets through notes payable. Also, the City does not budget for the state
pension contributions that must be recorded as intergovernmental revenue and public
safety expenditures in the General Fund GAAP financial statements.
For the fiscal year ended September 30, 2011 the following adjustments are necessary to
convert General Fund revenues and expenditures on the GAAP basis to the budgetary
basis:
Revenues Expenditures
General Fund:
GAAP Basis 16,804,721$ 17,236,630$
Nonbudgeted state pension amounts (385,576) (385,576)
Budgetary basis 16,419,145$ 16,851,054$
41
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 4 - Cash and Investments:
Deposits
At year-end, the carrying amount of the City's deposits was $30,756,713 and the bank
balance was $31,259,862. Fiduciary fund cash held by the pension fund is not in the City’s
bank. All bank deposits were fully covered by federal depository insurance or by collateral
held in banks that are members of the State of Florida's Collateral Pool as specified under
Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans.
This limits local government deposits to "authorized depositories".
Investments
Investments in all fund types are stated at fair value, which is the amount for which an
investment could be exchanged in a current transaction between willing parties, other than
in a forced liquidation sale. Fair value is based on quoted market prices. Changes in the
fair value of investments are recognized as revenue and included in investment income.
The City’s investment policies are governed by state statute and city ordinance. Authorized
investments are:
(a) The Local Government Surplus Funds Trust (SBA).
(b) SEC registered money market funds.
(c) Interest-bearing time deposits or savings accounts in qualified public depositories.
(d) Direct obligations of the U.S. Treasury.
(e) Federal agencies and instrumentalities.
(f) Securities of, or other interests in, any open-end or closed-end management-type
investment company or investment trust registered under the Investment Company
Act of 1940.
(g) Repurchase Agreements.
(h) Other investments authorized by ordinance.
The assets of the City’s police and firefighters pension funds, as well as the general
employees defined benefit pension fund, are invested in the pooled investment fund for
the Florida Municipal Pension Trust Fund (FMPTF). Investments held in this fund
consist of corporate bonds and stocks and cash equivalents. The fund is stated at fair
value, and investment earnings are allocated to participants in the fund based on their
equity in this pooled investment account as provided by the Florida Municipal Pension
Fund.
42
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 4 - Cash and Investments (Continued):
Investments - (Continued)
Investments made by the City of Clermont at September 30, 2011 are summarized below.
Defined benefit pension plan investments, other than $11,754,867 in mutual funds,
investing in equity securities, are included below. In accordance with GASB 31,
investments are reported at fair value.
Investment Type Fair Value Credit Rating
Weighted
Average
Maturity
Federal Agency Bond 13,114,942$ AA+1.96 years
US Treasury Notes 2,910,268 AA+1.20 years
Corporate Note 2,749,805 AA-1.63 years
Municipal Bond 504,680 AA+1.84 years
Pension fixed income securities 5,941,821 AA/V4 6.74 years
25,221,516$ Credit Risk:
The City’s investment policy limits credit risk by restricting authorized investments to those
described above.
Custodial Credit Risk:
In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits
may not be returned to it. The City’s investment policy requires that bank deposits be
secured as provided by Chapter 280, Florida Statutes. This law requires local governments
to deposit funds only in financial institutions designated as qualified public depositories by
the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust
Fund, a multiple financial institution pool with the ability to assess its member financial
institutions for collateral shortfalls if a default or insolvency has occurred. At September 30,
2011, all of the city’s bank deposits were in qualified public depositories.
For an investment, this is the risk that, in the event of the failure of the counterparty, the
government will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. At September 30, 2011, none of the
investments listed are exposed to custodial credit risk because their existence is not
evidenced by securities that exist in physical or book entry form.
Concentration of Credit Risk:
The City’s investment policy requires diversification, but does not specify limits on types of
investments.
43
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 4 - Cash and Investments (Continued):
Investments - (Continued)
Interest Rate Risk:
The City’s investment policy does not specifically address interest rate risk, however the
general investment policy is to apply the prudent-person rule: Investments are made as a
prudent person would be expected to act, with discretion and intelligence, to seek
reasonable income, preserve capital, and in general, avoid speculative investments. The
City manages its exposure to declines in fair values by investing primarily in pooled
investments that have a weighted average maturity of less than three months.
Note 5 - Receivables:
Receivables as of yearend for the City’s individual major funds and non-major funds, including
the applicable allowances for uncollectible accounts, are as follows:
Nonmajor Internal
General Water Sewer Sanitation Enterprise Service
Fund Fund Fund Fund Fund Fund Total
Receivables:
Accounts 762,358$ 422,396$ 510,660$ 275,353$ 89,248$ 2,164$ 2,062,179$
Taxes 34,870 - - - - - 34,870
Other 202,147 59,366 - 1,113 - - 262,626
Less allowance
for uncollectible
accounts (721,462) (28,811) (52,919) (32,445) (10,731) - (846,368)
277,913$ 452,951$ 457,741$ 244,021$ 78,517$ 2,164$ 1,513,307$
44
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 6 - Capital Assets:
Capital asset activity for the year ended September 30, 2011 was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Governmental Activities:
Capital assets, not being depreciated:
Land 22,128,032$ -$ -$ 22,128,032$
Construction in progress 1,480,988 2,296,977 (2,657,647) 1,120,318
Total capital assets, not being
depreciated 23,609,020 2,296,977 (2,657,647) 23,248,350
Capital assets, being depreciated:
Buildings 12,598,720 1,435,981 - 14,034,701
Improvements/infrastructure 11,704,183 1,258,535 - 12,962,718
Machinery and equipment 7,934,983 372,986 (1,272,247) 7,035,722
Intangibles 632,481 12,918 - 645,399
Total capital assets being
depreciated 32,870,367 3,080,420 (1,272,247) 34,678,540
Less accumulated depreciation for:
Buildings (4,874,804) (561,778) - (5,436,582)
Improvements/infrastructure (7,498,070) (543,475) - (8,041,545)
Machinery and equipment (5,942,053) (859,572) 1,255,486 (5,546,139)
Intangibles (307,660) (131,489) - (439,149)
Total accumulated depreication (18,622,587) (2,096,314) 1,255,486 (19,463,415)
Total capital assets being
depreciated, net 14,247,780 984,106 (16,761) 15,215,125
Governmental activities capital
assets, net 37,856,800$ 3,281,083$ (2,674,408)$ 38,463,475$
45
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 6 - Capital Assets (Continued):
Beginning
Balance Increases Decreases
Ending
Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,457,973$ 393,510$ -$ 1,851,483$
Construction in progress 7,667,691 2,480,761 (3,576,368) 6,572,084
Total capital assets, not being
depreciated 9,125,664 2,874,271 (3,576,368) 8,423,567
Capital assets, being depreciated:
Buildings 37,178 - - 37,178
Improvements/infrastructure 76,397,292 4,256,194 - 80,653,486
Machinery and equipment 4,042,698 292,604 (110,399) 4,224,903
Intangibles 105,932 - - 105,932
Total capital assets being
depreciated 80,583,100 4,548,798 (110,399) 85,021,499
Less accumulated depreciation for:
Buildings (37,102) (76) - (37,178)
Improvements/infrastructure (15,928,558) (2,935,338) - (18,863,896)
Machinery and equipment (2,463,517) (483,788) 88,119 (2,859,186)
Intangibles (105,932) - - (105,932)
Total accumulated depreication (18,535,109) (3,419,202) 88,119 (21,866,192)
Total capital assets being
depreciated, net 62,047,991 1,129,596 (22,280) 63,155,307
Business-type activities capital
assets, net 71,173,655$ 4,003,867$ (3,598,648)$ 71,578,874$
Increases in accumulated depreciation for governmental activities include depreciation on
assets transferred from business-type, as well as reclassifications and adjustments. This
difference is $90,763.
Depreciation expense was charged to functions/programs as follows:
General government 355,157$
Public safety 1,019,891
Physical environment/transportation 382,216
Culture and recreation 248,287
Total depreciation expense - governmental activities 2,005,551$
Water 787,792$
Sewer 2,032,895
Sanitation 313,732
Stormwater 284,785
Total depreciation expense - business-type activities 3,419,204$
Governmental activities:
Business-type activities
46
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 7 - Long-Term Debt:
Bonds Payable
The City issues bonds to provide funds for the acquisition and construction of major capital
assets. Bonds have been issued for both governmental and business-type activities.
The 2002 Public Improvement Revenue Bonds are secured by Public Service Tax,
Communication Service Tax and Half Cent Sales Tax revenue. The total principal and
interest remaining to be paid on this series is $4,181,710. For the fiscal year, principal and
interest paid on this series was $632,256 and total pledged revenue was $4,902,055.
The 2009 Water and Sewer Revenue and Refunding Bonds are secured by net revenue of
the water and sewer system. The total principal and interest remaining to be paid on this
series is $23,390,438. For the fiscal year, principal and interest paid on this series was
$1,193,633 and total pledged revenue was $3,480,703.
The original amount of revenue bonds issued in prior years is described below. Revenue
bonds outstanding at year end are as follows:
Governmental Activities
Interest Rates
and Dates Maturity Original Amount
Balance
September 30,
2011
Public Improvement 1.75 - 4.6%12/1/2003
Revenue Bonds,to
Series 2002 (6/1 & 12/1)12/1/2017 6,965,000$ 3,570,000$
Business-Type Activities
Water and Sewer Revenue 3.0 - 4.6%12/1/2010
Refunding Bonds,to
Series 2009 (6/1 & 12/1)12/1/2030 16,640,000$ 16,105,000$
47
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 7 - Long-Term Debt (Continued):
Bonds Payable - (Continued)
Annual debt service requirements to maturity for revenue bonds are as follows:
Year ending September 30,Principal Interest Principal Interest
2012 490,000$ 152,700$ 580,000$ 597,573$
2013 510,000 133,100 595,000 579,948
2014 530,000 112,700 615,000 561,798
2015 550,000 90,440 630,000 543,123
2016 575,000 66,790 650,000 523,922
2017-2021 915,000 55,980 3,565,000 2,293,950
2022-2026 - - 4,265,000 1,583,090
2027-2031 - - 5,205,000 602,034
Total 3,570,000$ 611,710$ 16,105,000$ 7,285,438$
Governmental Activities Business - Type Activities
48
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 7 - Long-Term Debt (Continued):
Changes in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2011 was as follows:
Beginning
Balance Additions Deductions
Ending
Balance
Due Within
One Year
Governmental activities
Bonds payable-
Revenue Bonds 4,040,000$ -$ (470,000)$ 3,570,000$ 490,000$
Other post employment
benefits 807,105 406,583 - 1,213,688 -
Compensated Absences 602,856 79,638 (60,286) 622,208 62,221
Governmental activity long-
term liabilities 5,449,961$ 486,221$ (530,286)$ 5,405,896$ 552,221$
Business-type activities
Bonds payable-
Revenue Bonds 16,640,000$ -$ (535,000)$ 16,105,000$ 580,000$
Less deferred amounts:Issuance premium
(discount)57,414 - (2,836) 54,578 -
Loss on refunding (681,383) - 33,650 (647,733) -
Total bonds payable 16,016,031 - (504,186) 15,511,845 580,000
Other post employment
benefits 291,895 144,417 - 436,312 -
Compensated Absences 262,169 26,218 (57,204) 231,183 23,118
Business-type activity long-
term liabilities 16,570,095$ 170,635$ (561,390)$ 16,179,340$ 603,118$
49
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 8 - Interfund Receivables, Payables and Transfers:
Interfund transfers for the year ended September 30, 2011 consisted of the following:
General Capital Projects Nonmajor
Governmental
Capital Assets
Transfers Out:Fund Fund Governmental Not a Fund Total
General Fund -$ 148,730$ 95,236$ -$ $ 243,966
Capital Projects 39,440 - - 39,440
Nonmajor governmental 4,312 1,928,402 560,041 - 2,492,755
Water fund 498,116 - - 21,520 519,636
Sewer fund - - - 760 760
541,868$ 2,077,132$ 655,277$ 22,280$ 3,296,557$
Transfer In
Most of the transfers above are to cover debt service payments for the 2002 Public
Improvement Revenue Bonds, and also to cover costs of various capital projects. The
transfer out of the Water Fund is to cover their share of general fund expenses.
Transfers in the fund statements do not balance due to the transfer of capital assets out of
the water and sewer funds into the governmental capital assets.
Note 9 - Retirement Plans:
The City maintains three separate single-employer, defined benefit plans for general
employees, sworn police officers and firefighters, as well as a defined contribution plan for
general employees. The investment and administrative agent for the defined benefit plans is
the Florida Municipal Pension Trust Fund, an agent of the multiple-employer Public Employee
Retirement System. The assets and benefits of the defined contribution plan are administered
by the Florida League of Cities.
Defined Benefit Pension Plans - Each plan is independently governed by separate boards of
trustees. Assets may not be transferred between plans, or used for any purpose other than to
benefit each plan’s participants as defined in their authorizing ordinances. Each board
contracts with the Florida Municipal Pension Trust Fund (FMPTF), a private, not-for-profit
corporation established by the Florida League of Cities (FLC) for FLC members who wish to
use its services. The FMPTF acts as a common investment and administrative agent for its
members, contracting with a bank custodian, investment manager and actuary to provide a
commingled investment fund and plan valuation services. These plans are included as part of
the City’s reporting entity in Pension Trust Funds. The Clermont City Council adopted and
may amend plan provisions by resolution.
Stand-alone audited financial statements of the FMPTF are maintained on file at the FLC
offices in Tallahassee, Florida, and are available upon request to the Pension Services
Division.
50
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 9 - Retirement Plans (Continued):
Summary of Significant Accounting Policies
Basis of Accounting - The Plans’ financial statements are prepared using the accrual basis
of accounting. Plan member contributions are recognized in the period in which the
contributions are due. Employer contributions to each Plan are recognized when due and the
employer has made a formal commitment to provide the contributions. Benefits and refunds
are recognized when due and payable in accordance with the terms of each plan.
Method Used to Value Investments - Investments are reported at fair value. Short-term
investments are reported at cost, which approximates fair value. Securities traded on a
national or international exchange are valued at the last reported sales price at current
exchange rates. Investments that do not have an established market are reported at
estimated fair value. There are no investments that exceed 5% of the plan net assets.
Publicly available financial reports for each plan, that include detailed actuarial data, can be
obtained from the City’s Administrative Services Department.
Plan Descriptions and Contribution Information -
Membership of each of the defined benefit pension plans consisted of the following at
October 1, 2009, the date of the latest actuarial valuation:
General
Employees Police Officers Firefighters
Retirees and beneficiaries
currently receiving benefits 10 7 1
Terminated plan members entitled to,
but not yet receiving, benefits - 20 48
Active plan members - 50 58
Total 10 77 107
Plan Descriptions- The general employees defined benefit pension plan is for general
employees hired prior to September 30, 1985. The police officers’ and firefighters’ defined
benefit pension plans are both local law, single employer, defined benefit pension plans as
defined under Florida Statutes, Chapters 175 and 185, which covers all sworn police officers
and firefighters. Employees are eligible to participate in the plan immediately upon
employment with the City, and they are vested in the plan after ten years of service.
The normal retirement date for firefighters is the attainment of age 55 and 10 years of service,
or earlier attainment of age 52 and 25 years of service. The normal retirement date for police
officers is the attainment of age 55 and 10 years of service, or 20 years of service, regardless
of age. The normal retirement benefit is the number of years of credited service prior to
October 1, 2002 multiplied by 2.25%, and the number of years of credited service after
October 1, 2002 multiplied by 3%, and multiplied by the average final monthly compensation.
51
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 9 - Retirement Plans (Continued):
Early retirement is available after age 50 and 10 years of service; however, the early
retirement benefit is reduced by 2% for each year before the normal retirement date.
Contributions - The City’s actuarially determined contribution rate per the October 1, 2009
actuarial valuations is $3,051 for general employees, 28.7% for police officers and 24.16%
for firefighters. Police officers make a minimum mandatory contribution of 3% and
firefighters make a minimum mandatory contribution of 1%, in order to take advantage of the
insurance premium tax rebate provided for in the statutes. Administrative costs are
deducted from the net assets of the plan.
Annual Pension Cost and Net Pension Obligation - The City’s annual pension cost and net
pension obligation for the current year were as follows:
General
Employees Police Officers Firefighters
Annual Required Contribution (ARC)3,051$ 752,413$ 650,663$
Interest on the Net Pension Obligation (Asset)- - -
Adjustment to ARC - (3,375) 126
Annual Pension Cost 3,051$ 749,038$ 650,789$
The City has always contributed the ARC and thus has never been required to report a net
pension obligation. Below is the required three-year trend information on annual pension
cost.
Three-Year Trend Information
Fiscal
Year
Ending
Annual Pension
Cost (APC)
Percentage of APC
Contributed
9/30/2011 3,051$ 100%
9/30/2010 3,051 100%
9/30/2009 - 100%
9/30/2011 749,038$ 100%
9/30/2010 713,188 100%
9/30/2009 570,869 100%
9/30/2011 650,789$ 100%
9/30/2010 617,491 100%
9/30/2009 420,790 100%
General Employees
Police Officers
Firefighters
52
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 9 - Retirement Plans (Continued):
Funded Status and Funding Progress – Pension Plans
The funded status of each plan as of October 1, 2009, the most recent actuarial valuation
date, is as follows:
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability
(AAL) -
Entry Age
(b)
Unfunded
AAL (UAAL)
(b - a)
Funded
Ratio
(a / b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b - a) / c)
General Employees 573,379$ 566,885$ -$ 101.2%-$ N/A
Police Officers 5,288,822 6,163,934 875,112 85.8%2,485,033 35.2%
Firefighters 2,609,047 2,596,659 - 100.5%2,552,427 0.0% The schedules of funding progress, presented as required supplementary information (RSI)
following the notes to the financial statements, present multiyear trend information about
whether the actuarial values of plan assets are increasing or decreasing over time relative to
the AALs for benefits.
The City uses the aggregate actuarial cost method to value its pension plans, which does
not identify or separately amortize unfunded actuarial liabilities. Information about the plan’s
funded status and funding progress has been prepared using the entry age actuarial cost
method for that purpose, and the information presented is intended to serve as a surrogate
for the funded status and funding progress of the plan.
Additional information as of the latest actuarial valuation follows:
General Employees Police Officers Firefighters
Valuation date 10/1/2009 10/1/2009 10/1/2009
Actuarial Cost Method Aggregate Cost Aggregate Cost Aggregate Cost
Amortization Method N/A Level Percentage, open Level Percentage, open
Remaining Amortization Period N/A 30 years 30 years
Asset Valuation Method Market Value Market Value Market Value
Actuarial Assumptions:
Investment rate of return 7.5%7.5%7.5%
Projected salary increases
(including inflation of 3.5%)0.0%5.5%5.5%
Cost of living adjustment 0.0%0.0%0.0%
Mortality table RP-2000 Mortality Table RP-2000 Mortality Table RP-2000 Mortality Table
53
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 9 - Retirement Plans (Continued):
Plan changes in the October 1, 2009 actuarial valuations of all three plans included
changing from the 1983 Group Annuity Mortality Table to the one indicated above. The
minimum required contribution increased for Police Officers and Firefighters in the October
1, 2009 actuarial valuation by 5.71% and 4.5% respectively, of covered payroll. This
increase was due to investment losses, as well as the previously mentioned assumption
change in the mortality table.
General Employee Defined Contribution Pension Plan - The defined Contribution
Pension Plan for General Employees of the City of Clermont was established October 1,
1985, as defined in Chapter 16, Article IV, of the Clermont Code, and is available to all
permanent general employees of the City, once they have completed one year of
employment. Employees are fully vested in the plan after ten years of service.
In a defined contribution plan, benefits depend solely on amounts contributed to the plan,
plus investment earnings. Contributions for, and interest forfeited by, employees who
terminate employment before five years of service are used to reduce the City’s current
period contributions.
Covered payroll for this Plan for fiscal year 2011 was $5,469,214; the City’s total payroll for
City employees was $11,290,462.
The City contributes annually to the pension account of each active participant an amount
equal to ten percent (10%) of the employee’s annual compensation. No contribution is
required by employees. The City of Clermont City Council adopted and may amend plan
provision by resolution.
The actual contribution made by the City for fiscal year 2011 was $427,806.
Note 10 - Other Post Employment Benefits:
In accordance with Florida Statutes Section 112.0801, the City makes continued group
health and dental insurance through the city’s current provider available to retirees and
eligible dependents provided certain service requirements and normal age retirement
requirements have been met. This plan is a single employer plan. The City is self insured
with respect to these benefits and provides an explicit subsidy for coverage to retirees and
their spouses based on the coverage selected. The City has nine retirees currently
receiving benefits. The City has chosen pay-as-you-go funding, but is recording the liability
in the government wide financial statements. This plan does not issue stand-alone financial
statements.
54
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 10 - Other Post Employment Benefits (Continued):
The most recent actuarial report for the City’s Retiree Continuation Insurance Plan was
prepared as of April 1, 2011. The annual required contribution and Net OPEB Obligation for
the fiscal year ended September 30, 2011 is as follows:
Annual required contribution 649,000$
Interest on net OPEB Obligation 44,000
Adjustment to annual required contribution (95,000)
Annual OPEB Cost 598,000
Employer Contributions (46,000)
Interest on Employer Contributions (1,000)
Increase in Net OPEB Obligation 551,000
Net OPEB Obligation (beginning of year)1,099,000
Net OPEB Obligation (end of year)1,650,000$
Three Year Trend Information-
Fiscal
Year
Ending
Annual
OPEB Cost
Percentage
of Cost
Contributed
Net OPEB
Obligation
9/30/2009 571,000$ 5.0%542,000$
9/30/2010 611,000 5.0%1,099,000
9/30/2011 649,000 7.0%1,650,000
Funded Status and Funding Progress - OPEB
The funded status of the plan as of April 1, 2011, the most recent actuarial valuation date,
is as follows:
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability
(AAL) - Entry
Age (b)
Unfunded
AAL (UAAL)
(b - a)
Funded
Ratio
(a / b)
Covered
Payroll (c)
UAAL as a
Percentage
of Covered
Payroll
((b - a) / c)
-$ 2,909,000$ 2,909,000$ 0.0%10,342,000$ 28.10%
Summary of Actuarial Methods & Assumptions:
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future.
55
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 10 - Other Post Employment Benefits (Continued):
Summary of Actuarial Methods & Assumptions (Continued)
The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, present multiyear trend information about
whether the actuarial values of plan assets are increasing or decreasing over time relative to
the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
Actuarial Cost Method- The projected unit credit cost method was used to determine all
liabilities, with the liability for each active employee assumed to accrue over his working
lifetime based on elapsed time from his date of hire until retirement.
Amortization Method- The level-dollar payment with a 15 year open period amortization
method was used.
Decrements-
Mortality- Sex-distinct mortality rates set forth in the RP-2000 mortality table for annuitants
and non-annuitants, projected to 2007 by Scale AA, as published by the IRS for purposes of
IRC section 430; no deaths were assumed to be service-related.
Disability- Sex-distinct disability rates set forth in the Wyatt 1985 Disability Study; Class 4
rates were used for police officers and firefighters, Class 1 rates were used for all other
employees.
Permanent Withdrawal from Active Status- Sex-distinct withdrawal rates set forth in the
Scale 155 table.
Retirement- Retirement was assumed to occur as follows:
1.For police officers:Age 55 with at least 10 years of service, or
Age 52 with at least 20 years of service
2.For firefighters:Age 55 with at least 10 years of service, or
Age 52 with at least 25 years of service
3.For all others:Age 62 with at least 10 years of service
Investment Return (Discount Rate)- 4.0% per annum (includes inflation at 2.75% per
annum)
56
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 10- Other Post Employment Benefits (Continued):
Summary of Actuarial Methods & Assumptions (Continued)
Health Care Costs Trend Rates-The cost of covered medical services has been assumed
to increase in accordance with the following rates, compounded annually:
Year Increase Year Increase Year Increase
2011 10.00%2015 8.00%2019 6.00%
2012 9.50%2016 7.50%2020 5.00%
2013 9.00%2017 7.00%and later
2014 8.50%2018 6.50%
Per Capita Annual Claim Cost-The assumed per capita annual claim cost for a 62-year
old participant during the period April 1, 2011 through March 31, 2012 is $9,225. Medicare
is assumed to cover 80% of the healthcare claim cost after age 65.
Retiree Premiums-During the period April 1, 2011 through March 31, 2012, retirees under
age 65 have been assumed to make a contribution equal to $293.70 per month for
themselves plus $282.70 per month for their spouses. During the same period, retirees
over age 65 have been assumed to make a contribution equal to $176.22 per month for
themselves plus $169.62 per month for their spouses. All amounts are assumed to
increase thereafter in accordance with the healthcare cost trend rates.
Dental Subsidy-Dental costs are not assumed to increase with age. Therefore, this
valuation only reflects explicit dental subsidy that is provided by the City. For the period
April 1, 2011 through March 31, 2012, the dental subsidy is $25.04 per month for retired
employees and $61.40 per month for spouses of retirees, with both amounts assumed to
increase at the rate of 2.5% per annum thereafter.
Age-Related Morbidity-The cost of covered medical services has been assumed to
increase with age at the rate of 3.5% per annum.
Future Participation Rates-One third of eligible employees are assumed to elect coverage
upon retirement or disability and, of those electing coverage for themselves, one-third were
assumed to elect coverage for their spouses as well. Coverage for current retirees and
their spouses was assumed to continue for life.
Marriage & Dependent Assumption-Solely with respect to active employees, husbands
are assumed to be three years older than wives. Active employees were not assumed to
have any dependent children upon retirement or disability.
COBRA Assumption-Future healthcare coverage provided solely pursuant to COBRA was
not included in the OPEB valuation; because the COBRA premium is determined
periodically based on plan experience and is then loaded for administrative expenses, we
assumed that the COBRA premium to be paid by the participant fully covers the cost of
providing healthcare coverage during the relevant period.
57
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 10 - Other Post Employment Benefits (Continued):
Summary of Benefits
Other Post-Employment Benefits (OPEBs)-The City of Clermont provides optional post-
employment healthcare and dental coverage to eligible individuals. The City is self-insured
with respect to both benefits and provides an explicit subsidy for such coverage to retirees
and their spouses.
Eligible Individuals-Eligible individuals include all regular employees of the City of
Clermont who retire from active service and are eligible for retirement or disability benefits
under the general employee, fire, and police pension plans. Under certain conditions,
eligible individuals for healthcare coverage also include spouses and dependent children.
Required Monthly Premium for Post-Employment Healthcare Coverage-Retirees must
pay a monthly premium as determined periodically by the City. The premium varies
depending on whether the retiree elects single, single plus spouse, or family coverage and
whether the retiree or his spouse is eligible for Medicare.
Note 11 - Risk Management:
During fiscal year 1990, the City established an internal service fund to account for its
uninsured risk of loss for employee medical and dental coverage. Under this program, the
fund provides coverage for the first $100,000 per year in medical, dental, or prescription
claims for each covered employee. The City purchases commercial insurance for claims in
excess of coverage provided by the fund with a total aggregate stop-loss of $2,000,000.
There has been no reduction in insurance coverage from that carried in the prior year.
Claims provided have not exceeded insurance coverage in any of the past three fiscal
years.
The general, water, sewer, sanitation and stormwater funds participate in the program and
make payments to the internal service fund based on the number of employees budgeted in
each fund.
The claims liability of $113,599 represents claims processed through October 2011 which
were applicable to the current fiscal year and any additional claims are deemed immaterial.
Changes to the current claims liability are as follows:
2011 2010
Claims liabilities, beginning of year 107,936$ 165,714$
Incurred Claims 2,928,460 2,865,301
Payments on Claims (2,922,797) (2,923,079)
Claims liabilities, end of year 113,599$ 107,936$
58
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 12 - Commitments and Contingencies:
Litigation - The City is engaged in various liability claims incidental to the conduct of its
general government operations at September 30, 2011. While the ultimate outcome of the
litigation cannot be determined at this time, management believes that any amounts not
covered by insurance, if any, resulting from these lawsuits would not materially affect the
financial position of the City.
Risk Management - The City is exposed to various risks of loss related to torts; theft of,
damage to and destruction of assets; errors and omissions; and natural disasters for which
the City carries commercial insurance. The City has obtained excess insurance coverage
with varying retentions and limits to further limit exposure to large losses. There have been
no significant reductions in insurance coverage from the prior year and settlements have not
exceeded insurance coverage during the past three years.
Note 13 - Fund Balances:
In fiscal year 2011, the City implemented GASB Statement 54, “Fund Balance Reporting
and Governmental Fund Type Definitions.” This standard promotes clarity and consistency
to Fund Balance classifications and categories, making the statements more useful by
clarifying the presentation of available resources.
Due to the implementation of GASB Statement 54, the components of the fund balances of
governmental funds now reflect the classifications described below.
Nonspendable
Nonspendable funds include fund balance amounts that are (a) not in spendable form or (b)
legally or contractually required to be maintained intact.
Spendable Fund Balance
Restricted – includes fund balance amounts that can be spent only for specific purposes
stipulated by (a) external resource providers such as creditors (by debt covenants), grantors,
contributors, or laws and regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation.
Committed – includes fund balance amounts that can be used only for the specific purposes
determined by formal action of the City Council, the City’s highest level of decision making
authority, with formal action occurring prior to the fiscal year end. Commitments may be
changed or lifted only by the City Council taking the same formal action (Resolution) that
imposed the constraint originally.
Assigned – includes spendable fund balance amounts that are intended to be used for
specific purposes that are neither considered restricted or committed. The City Council is
authorized to assign amounts for a specific purpose.
59
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2011
Note 13 - Fund Balances (Continued):
Spendable Fund Balance (Continued)
Unassigned – includes residual positive fund balance within the General Fund which has not
been classified within the other above mentioned categories. Unassigned fund balance may
also include negative balances for any governmental fund if expenditures exceed amounts
restricted, committed, or assigned for those specific purposes.
The City considers restricted amounts to be spent first when both restricted and unrestricted
fund balance is available unless there are legal documents/contracts that prohibit doing this,
such as in grant agreements requiring dollar for dollar spending. Additionally, the City would
first use committed, then assigned, and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.
At September 30, 2011, the City’s governmental fund balances were as follows:
General Capital Projects
Community
Redevelopment
Other
Governmental
Fund Fund Special Revenue Fund Funds Total
Fund Balances
Non-spendable
Inventory/prepaids 334,985$ -$ 18$ 1,107$ $ 336,110
Cemetery - - - 847,260 847,260
Spendable
Restricted for:
Public safety 174,596 - - 2,492,881 2,667,477
Culture and recreation - - - 312,055 312,055
Community redevelopment - - 1,658,499 - 1,658,499
Infrastructure - - - 1,401,692 1,401,692
Debt service - - - 494,141 494,141
Assigned for:
Capital projects - 2,853,747 - - 2,853,747
Subsequent year
expenditures 912,137 - - - 912,137
Unassigned 10,047,810 - - (1,116) 10,046,694
11,469,528$ 2,853,747$ 1,658,517$ 5,548,020$ 21,529,812$
Note 14 - Evaluation of Events:
The City has evaluated subsequent events through March 5, 2012, the date the financial
statements were available to be issued.
60
REQUIRED SUPPLEMENTAL INFORMATION
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2011
Schedules of Funding Progress - Pension Plans
Actuarial Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability
(AAL) -
Entry Age
(b)
Unfunded
AAL
(UAAL)
(b - a)
Funded
Ratio
(a / b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b - a) / c)
General Employees
10/1/2003 863,029 863,029 - 100.0%- N/A
10/1/2004 863,278 863,278 - 100.0%- N/A
10/1/2005 816,972 816,972 - 100.0%- N/A
10/1/2006 794,277 794,277 - 100.0%- N/A
10/1/2007 822,401 822,401 - 100.0%- N/A
10/1/2009 573,379 566,885 - 101.2%- N/A
Police Officers
10/1/2002 3,268,335 2,368,335 - 100.0%1,042,972 0.0%
10/1/2003 2,762,688 2,762,688 - 100.0%1,279,696 0.0%
10/1/2004 3,032,203 3,032,203 - 100.0%1,424,568 0.0%
10/1/2005 3,571,295 3,571,295 - 100.0%1,534,254 0.0%
10/1/2007 4,905,071 4,905,071 - 100.0%2,356,375 0.0%
10/1/2009 5,288,822 6,163,934 875,112 85.8%2,485,033 35.2%
Fire Fighters
10/1/2003 814,097 814,097 - 100.0%597,364 0.0%
10/1/2004 974,966 974,966 - 100.0%901,980 0.0%
10/1/2005 1,256,347 1,256,347 - 100.0%1,047,097 0.0%
10/1/2006 1,345,093 1,345,093 - 100.0%1,257,860 0.0%
10/1/2007 1,972,299 1,972,299 - 100.0%2,031,230 0.0%
10/1/2009 2,609,047 2,596,659 - 100.5%2,552,427 0.0%
61
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2011
Schedules of Employer Contributions - Pension Plans
Year Ended
9/30
Annual
Required
Contribution
Percentage
Contributed
Annual Required
Contribution
Percentage
Contributed
Annual
Required
Contribution
Percentage
Contributed
2006 19,697$ 100%291,677$ 100%189,164$ 100%
2007 19,697 100%376,518 100%199,989 100%
2008 - 100%541,697 100%410,350 100%
2009 - 100%570,869 100%420,790 100%
2010 3,051 100%713,188 100%616,742 100%
2011 3,051 100%749,038 100%650,789 100%
General Employees Police Officers Firefighters
Employer Contributions
62
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2011
Schedule of Funding Progress - Retiree Continuation Insurance Plan
Actuarial
Valuation
Actuarial Value
of Assets
Actuarial
Accrued Liability
(AAL) Entry Age
Unfunded AAL
(UAAL)
Funded
Ratio Covered Payroll
UAAL as a
% of
Covered
Payroll
Date (a)(b)(b-a)(a/b)( c)(b-a) / c
5/1/2009 *-$ 2,413,000$ 2,413,000$ 0.0%10,764,000$ 22.4%
4/1/2011 -$ 2,909,000$ 2,909,000$ 0.0%10,342,000$ 28.1%
*initial valuation date
Schedule of Funding Progress
Schedule of Employer Contributions - Retiree Continuation Insurance Plan
Annual Required
Percentage
of ARC
Fiscal Year Ending Contribution (ARC)Contributed
9/30/2009 571,000$ 5.0%542,000$
9/30/2010 611,000 5.0%1,099,000
9/30/2011 649,000 7.0%1,650,000
Net OPEB
Obligation
63
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information
September 30, 2011
Note 1
The following plan changes have been implemented in conjunction with the October 1, 2009
actuarial valuation for the General Employees Pension Plan.
1. The mortality basis was changed from the 1983 Group Annuity Mortality Table to the
RP-2000 Mortality Table to reflect updated life expectancy. The net effect of the change
in mortality rates was to decrease the total projected liability by $70,040 and to decrease
the normal cost rate by $855.
2. An administrative expense assumption has been added equal to a 5% loading of plan
liabilities. The new expense assumption results in $3,749 of assumed administrative
expenses for the 2009-10 plan year. In addition, expenses are assumed to increase in
proportion to plan liabilities during later years.
Note 2
The following plan changes have been implemented in conjunction with the October 1, 2009
actuarial valuation for the Police Officers Pension Plan.
1. The mortality basis was changed from the 1983 Group Annuity Mortality Table to the
RP-2000 Mortality Table to reflect updated life expectancy. The net effect of the change
in mortality rates was to increase the total projected liability by $178,387 and to increase
the normal cost rate by 0.71% of payroll.
2. The administrative expense assumption has been changed from a flat $10,500 per year
to a 1.5% loading of plan liabilities. The new expense assumption results in $20,013 of
assumed administrative expenses for the 2009-10 plan year. In addition, expenses are
assumed to increase in proportion to plan liabilities during later years.
Note 3
The following plan changes have been implemented in conjunction with the October 1, 2009
actuarial valuation for the Firefighters Pension Plan.
1. The mortality basis was changed from the 1983 Group Annuity Mortality Table to the
RP-2000 Mortality Table to reflect updated life expectancy. The net effect of the change
in mortality rates was to increase the total projected liability by $374,084 and to increase
the normal cost rate by 1.17% of payroll.
2. The administrative expense assumption has been changed from a flat $8,000 per year to
a 1.75% loading of plan liabilities. The new expense assumption results in $14,437 of
assumed administrative expenses for the 2009-10 plan year. In addition, expenses are
assumed to increase in proportion to plan liabilities during later years.
64
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
Capital Projects Fund
Capital Projects Fund This fund was established to account for financial
resources segregated for the acquisition or
construction of major capital facilities.
65
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with
Final Budget -
Positive
(Negative)
OriginalFinal
Revenues:
Investment earnings 22,500$ 22,500$ 7,127$ (15,373)$
Total revenues 22,500 22,500 7,127 (15,373)
Expenditures:
Current:
General government 91,500 144,760 144,760 -
Culture and recreation 30,00071,997 58,878 13,119
Public safety:-
Police 250,000290,838 41,901 248,937
Capital Outlay:
General government 2,000,000 2,000,000 6,671 1,993,329
Public safety 500,000 500,000 - 500,000
Culture and recreation 1,248,730 2,631,118 1,916,484 714,634
Total expenditures 4,491,730 6,146,308 2,168,694 3,732,075
Excess (Deficiency) of Revenues Over
Expenditures (4,469,230) (6,123,808) (2,161,567) 3,716,702
Other Financing Sources (Uses):
Transfers in 3,720,230 2,760,103 2,077,132 (682,971)
Transfers out - (39,440) (39,440) -
Total other financing sources (uses)3,720,230 2,720,663 2,037,692 (682,971)
Net Change in Fund Balance (749,000) (3,403,145) (123,875) 3,279,270
Fund Balances - Beginning 2,977,622 2,977,622 2,977,622 -
Fund Balances - Ending 2,228,622$ (425,523)$ 2,853,747$ 3,279,270$
CITY OF CLERMONT, FLORIDA
CAPITAL PROJECTS FUND
Year Ended September 30, 2011
The accompanying Notes to Financial Statements are an integral part of this statement.
66
OTHER GOVERNMENTAL FUNDS
Special Revenue Funds
Recreation Impact Fees Fund This fund was established to account for recreation
impact fees collected from new developments
constructed in the City which are restricted for use in
funding capital facilities and equipment directly
related to new growth.
Police Impact Fees Fund This fund was established to account for police
impact fees collected from new developments
constructed in the City which are restricted for use in
funding capital facilities and equipment directly
related to new growth.
Fire Impact Fee Fund This fund was established to account for fire impact
fees collected from new developments constructed
in the City which are restricted for use in funding
capital facilities and equipment directly related to
new growth.
Building Services Fund This fund was established to account for the
operations of the City’s building and other permits
department which are restricted for use in funding
capital facilities and equipment directly related to
new growth.
Infrastructure Fund This fund was established to account for the
proceeds of the Local Government Infrastructure
Surtax. The proceeds and interest accrued thereto,
by law are only to be used to finance, plan and
construct infrastructure.
Debt Service Fund
Debt Service Fund This fund was established to account for the
accumulation of resources and payment of bond
principal and interest from governmental resources.
Permanent Fund
Cemetery Perpetual Care Fund This fund is used to account for monies provided by
people buying lots in the City cemetery. The
principal must be kept separate and apart from all
other funds, but the interest may be transferred to
the General Fund to defray the cost of cemetery
operation and maintenance.
67
Special Revenue
Recreation
Impact Fees
Police Impact
Fees
Fire Impact
Fees
Building
Services
Infrastructure
Special
Revenue
Assets:
Cash and cash equivalents 317,601$ 2,415,113$ 77,768$ 24,331$ 1,275,972$
Due from other governments - - - - 126,753
Prepaid costs - - - 1,107 -
Total assets 317,601$ 2,415,113$ 77,768$ 25,438$ 1,402,725$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 5,546$ -$ -$ 25,447$ 1,033$
Total liabilities 5,546 - - 25,447 1,033
Fund balances:
Non spendable - - - 1,107 -
Restricted 312,055 2,415,113 77,768 - 1,401,692
Unassigned - - - (1,116) -
Total fund balances 312,055 2,415,113 77,768 (9) 1,401,692
Total liabilities and
fund balances 317,601$ 2,415,113$ 77,768$ 25,438$ 1,402,725$
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
September 30, 2011
68
Special
Revenue
TotalDebt Service
Permanent Fund -
Cemetery
Perpetual Care
Total Nonmajor
Governmental
Funds
4,110,785$ 494,141$ 847,535$ 5,452,461$
126,753 - - 126,753
1,107 - - 1,107
4,238,645$ 494,141$ 847,535$ 5,580,321$
32,026$ -$ 275$ 32,301$
32,026 - 275 32,301
1,107 - 847,260 848,367
4,206,628 494,141 - 4,700,769
(1,116) - - (1,116)
4,206,619 494,141 847,260 5,548,020
4,238,645$ 494,141$ 847,535$ 5,580,321$
69
Special Revenue
Recreation
Impact Fees
Police Impact
Fees
Fire Impact
Fees
Building
Services
Revenues:
Licenses and permits -$ -$ -$ 291,199$
Intergovernmental - - - -
Charges for services - - - 37,514
Impact fees/special assessments 437,547 84,696 60,039 -
Investment earnings 8,348 12,614 498 159
Miscellaneous - - - -
Total revenues 445,895 97,310 60,537 328,872
Expenditures:
Current:
General government - - - 406,377
Public safety - - - -
Transportation - - - -
Culture and recreation 44,774 - - -
Debt Service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 44,774 - - 406,377
Excess (Deficiency) of Revenues
Over Expenditures 401,121 97,310 60,537 (77,505)
Other Financing Sources (Uses):
Transfers in - - - 18,867
Transfers out (1,432,127) (41,902) (101,828) -
Total other financing sources (uses)(1,432,127) (41,902) (101,828) 18,867
Net Change in Fund Balances (1,031,006) 55,408 (41,291) (58,638)
Fund Balances - Beginning 1,343,061 2,359,705 119,059 58,629
Fund Balances - Ending 312,055$ 2,415,113$ 77,768$ (9)$
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
Year Ended September 30, 2011
70
Infrastructure
Special
Revenue Total Debt Service
Permanent Fund -
Cemetery
Perpetual Care
Total Nonmajor
Governmental
Funds
-$ 291,199$ -$ -$ 291,199$
1,899,202 1,899,202 - - 1,899,202
- 37,514 - - 37,514
- 582,282 - - 582,282
6,776 28,395 1,657 4,312 34,364
- - - 50,400 50,400
1,905,978 2,838,592 1,657 54,712 2,894,961
- 406,377 - - 406,377
130,973 130,973 - - 130,973
418,917 418,917 - - 418,917
- 44,774 - - 44,774
- - 470,000 - 470,000
- - 162,256 - 162,256
549,890 1,001,041 632,256 - 1,633,297
1,356,088 1,837,551 (630,599) 54,712 1,261,664
- 18,867 636,410 - 655,277
(912,586) (2,488,443) - (4,312) (2,492,755)
(912,586) (2,469,576) 636,410 (4,312) (1,837,478)
443,502 (632,025) 5,811 50,400 (575,814)
958,190 4,838,644 488,330 796,860 6,123,834
1,401,692$ 4,206,619$ 494,141$ 847,260$ 5,548,020$
Special Revenue
71
CITY OF CLERMONT, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
OriginalFinal
Revenues:
Impact fees/special assessments 500,000$ 500,000$ 437,547$ (62,453)$
Investment earnings 3,750 3,750 8,348 4,598
Total revenues 503,750 503,750 445,895 (57,855)
Expenditures:
Current:
Culture and recreation 35,000 50,968 44,774 6,194
Total expenditures 35,000 50,968 44,774 6,194
Excess (Deficiency) of Revenues
Over Expenditures 468,750 452,782 401,121 (51,661)
Other Financing Sources (Uses)
Transfers out (1,130,000) (1,459,657) (1,432,127) 27,530
Total other financing sources (uses)(1,130,000) (1,459,657) (1,432,127) 27,530
Net Change in Fund Balances (661,250) (1,006,875) (1,031,006) (24,131)
Fund Balances - Beginning 1,343,061 1,343,061 1,343,061 -
Fund Balances - Ending 681,811$ 336,186$ 312,055$ (24,131)$
RECREATION IMPACT FEE SPECIAL REVENUE FUND
Year Ended September 30, 2011
72
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Impact fees/special assessments 130,000$ 130,000$ 84,696$ (45,304)$
Investment earnings 7,500 7,500 12,614 5,114
Total revenues 137,500 137,500 97,310 (40,190)
Expenditures:
Current:
Public Safety:
Law enforcement - 150,000 - 150,000
Total expenditures - 150,000 - 150,000
Excess (Deficiency) of Revenues
Over Expenditures 137,500 (12,500) 97,310 109,810
Other Financing Sources (Uses)
Transfers out (750,000) (632,837) (41,902) 590,935
Total other financing sources (uses)(750,000) (632,837) (41,902) 590,935
Net Change in Fund Balances (612,500) (645,337) 55,408 700,745
Fund Balances - Beginning 2,359,705 2,359,705 2,359,705 -
Fund Balances - Ending 1,747,205$ 1,714,368$ 2,415,113$ 700,745$
POLICE IMPACT FEE SPECIAL REVENUE FUND
CITY OF CLERMONT, FLORIDA
Year Ended September 30, 2011
73
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Impact fees/special assessments 100,000$ 100,000$ 60,039$ (39,961)$
Investment earnings 750 750 498 (252)
Total revenues 100,750 100,750 60,537 (40,213)
Expenditures:
Current:
Public safety:
Fire control - - - -
Total expenditures - - - -
Excess (Deficiency) of Revenues
Over Expenditures 100,750 100,750 60,537 (40,213)
Other Financing Sources (Uses):
Transfers out (101,089) (101,828) (101,828) -
Total other financing sources (uses)(101,089) (101,828) (101,828) -
Net Change in Fund Balances (339) (1,078) (41,291) (40,213)
Fund Balances - Beginning 119,059 119,059 119,059 -
Fund Balances - Ending 118,720$ 117,981$ 77,768$ (40,213)$
CITY OF CLERMONT, FLORIDA
FIRE IMPACT FEE SPECIAL REVENUE FUND
Year Ended September 30, 2011
74
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Licenses and permits 400,000$ 400,000$ 291,199$ (108,801)$
Charges for services 68,000 68,000 37,514 (30,486)
Investment earnings 375 375 159 (216)
Total revenues 468,375 468,375 328,872 (139,503)
Expenditures:
Current:
General government 503,659 510,177 406,377 103,800
Total expenditures 503,659 510,177 406,377 103,800
Excess (Deficiency) of Revenues
Over Expenditures (35,284) (41,802) (77,505) (35,703)
Other Financing Sources (Uses):
Transfers in - 18,867 18,867 -
Total other financing sources and uses - 18,867 18,867 -
Net Change in Fund Balances (35,284) (22,935) (58,638) (35,703)
Fund Balances - Beginning 58,629 58,629 58,629 -
Fund Balances - Ending 23,345$ 35,694$ (9)$ (35,703)$
CITY OF CLERMONT, FLORIDA
BUILDING SERVICES SPECIAL REVENUE FUND
Year Ended September 30, 2011
75
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Intergovernmental revenues 1,730,000$ 1,730,000$ 1,899,202$ 169,202$
Investment earnings 3,750 3,750 6,776 3,026
Total revenues 1,733,750 1,733,750 1,905,978 172,228
Expenditures:
Current:
Public safety:
Police 148,000 148,000 130,973 17,027
Transportation:
Roads & streets 295,000 558,748 418,917 139,831
Total expenditures 443,000 706,748 549,890 156,858
Excess (Deficiency) of Revenues
Over Expenditures 1,290,750 1,027,002 1,356,088 329,086
Other Financing Sources (Uses):
Transfers out (2,146,400) (977,092) (912,586) 64,506
Total other financing sources (uses)(2,146,400) (977,092) (912,586) 64,506
Net Change in Fund Balances (855,650) 49,910 443,502 393,592
Fund Balances - Beginning 958,190 958,190 958,190 -
Fund Balances - Ending 102,540$ 1,008,100$ 1,401,692$ 393,592$
CITY OF CLERMONT, FLORIDA
INFRASTRUCTURE SPECIAL REVENUE FUND
Year Ended September 30, 2011
76
CITY OF CLERMONT, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
OriginalFinal
Revenues:
Investment earnings1,500$ 1,500$ 1,657$ 157$
Total revenues 1,500 1,500 1,657 157
Expenditures:
Debt Service:
Principal 470,000 470,000 470,000 -
Interest and fiscal charges 162,256 162,256 162,256 -
Total expenditures 632,256 632,256 632,256 -
Excess (Deficiency) of Revenues
Over Expenditures (630,756) (630,756) (630,599) 157
Other Financing Sources (Uses):
Transfers in 631,806 636,410 636,410 -
Total other financing sources (uses)631,806 636,410 636,410 -
Net Change in Fund Balances 1,050 5,654 5,811 157
Fund Balances - Beginning 488,330 488,330 488,330 -
Fund Balances - Ending 489,380$ 493,984$ 494,141$ 157$
DEBT SERVICE FUND
Year Ended September 30, 2011
77
78
FIDUCIARY FUNDS
Pension Trust Funds
General Employees’ Pension Trust Fund This fund is used to account for the accumulation of
resources to be used for retirement annuity payments at
the appropriate amounts and times in the future.
Resources are contributed at rates in accordance with
an actuarial study, whereas, a fixed percentage of
employees salaries is used in determining the annual
contribution to the defined contribution plan.
Police Officers’ Pension Trust Fund This fund is used to account for the accumulation of
resources to be used for the retirement annuities of all
police officers. The state contributes an amount
determined by an actuarial study.
Firefighters’ Pension Trust Fund This fund is used to account for the accumulation of
resources to be used for the retirement annuities of all
firefighters. The state contributes money based upon the
number of firefighters and the City contributes an amount
determined by an actuarial study.
79
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2011
Police
OfficersFirefightersTotal
Defined Defined PensionPensionEmployee
BenefitContributionTrustTrustPension Funds
Assets:
Cash and cash equivalents8,733$ $ - 147,360$ 92,056$ $ 248,149
Receivables:
Employer contribution receivable 3,051 - - - 3,051
Due from other governments - - - 5,998 5,998
Total receivables 3,051 - - 5,998 9,049
Investments:
U.S. Government & other debt securities209,110 - 3,528,4752,204,236 5,941,821
Equities 267,331 4,158,710 4,510,8812,817,945 11,754,867
Total Investments 476,441 4,158,710 8,039,356 5,022,181 17,696,688
Total assets 488,225 4,158,710 8,186,716 5,120,235 17,953,886
Liabilities:
Refunds payable and other - - 119,907 49,967 169,874
Total liabilities - - 119,907 49,967 169,874
Net Assets Held in Trust
for Pension Benefits 488,225$ 4,158,710$ 8,066,809$ 5,070,268$ 17,784,012$
General Employees
80
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Year Ended September 30, 2011
Police
OfficersFirefightersTotal
DefinedDefinedPensionPensionEmployee
BenefitContributionTrustTrustPension Funds
Additions:
Contributions:
Employer 3,051$ 427,806$ 743,926$ 646,435$ 1,821,218$
Plan members - - 94,705 30,335 125,040
State - - 212,565 173,011 385,576
Total contributions 3,051 427,806 1,051,196 849,781 2,331,834
Investment earnings:
Net increase (decrease) in fair value of
investments 10,636 36,781 18,538 (10,967) 54,988
Total net investment earnings 10,636 36,781 18,538 (10,967) 54,988
Total additions 13,687 464,587 1,069,734 838,814 2,386,822
Deductions:
Benefits/distributions 70,296 424,876 159,965 1,512 656,649
Administrative expenses 2,106 22,049 30,874 11,639 66,668
Total deductions 72,402 446,925 190,839 13,151 723,317
Change in Net Assets (58,715) 17,662 878,895 825,663 1,663,505
Net Assets Held in Trust for Pension Benefits
Beginning of Year 546,940 4,141,048 7,187,914 4,244,605 16,120,507
End of Year 488,225$ 4,158,710$ 8,066,809$ 5,070,268$ 17,784,012$
General Employees
81
82
Statistical Section
This part of the City of Clermont’s comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
government’s overall health.
Contents Page
Financial Trends 84
These schedules contain trend information to help the reader understand
how the government’s financial performance and well-being have
changed over time.
Revenue Capacity 94
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property tax.
Debt Capacity 99
These schedules present information to help the reader assess the
affordability of the government’s current levels of outstanding debt and
the government’s ability to issue additional debt in the future.
There are no limitations placed upon the amount of debt the City of
Clermont may issue by either the City Charter or the City’s Code of
Ordinances or by Florida Statutes.
The City of Clermont has no general obligation bonds outstanding.
Demographic and Economic Information 104
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government’s
financial activities take place.
Operating Information 108
These schedules contain service and infrastructure data to help the
reader understand how the information in the government’s financial
report relates to the services the government provides and the activities it
performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual reports for the relevant year.
83
20022003 20042005
Governmental activities
Invested in capital assets, net of related debt**10,959$ 12,118$
Restricted **3,1214,800
Unrestricted **5,6198,125
Total governmental activities net assets **19,699$ 25,043$
Business-type activities
Invested in capital assets, net of related debt**12,054$ 12,082$
Restricted **22,60127,573
Unrestricted **9,90313,414
Total business-type activities net assets **44,558$ 53,069$
Primary government
Invested in capital assets, net of related debt**23,013$ 24,200$
Restricted **25,72232,373
Unrestricted **15,52221,539
Total primary government net assets **64,257$ 78,112$
* Data not available prior to the implementation of GASB Statement 34.
Fiscal Year
City of Clermont, Florida
Net Assets by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
84
2006 2007 2008 2009 2010 2011
15,777$ 15,825$ 27,462$ 33,938$ 33,817$ 34,894$
5,935 7,830 8,959 6,526 6,693 7,381
8,69314,45911,94613,60813,98812,465
30,405$ 38,114$ 48,367$ 54,072$ 54,498$ 54,740$
15,864$ 24,837$ 46,569$ 54,834$ 55,540$ 56,430$
33,73236,93113,89910,43717,293 9,241
13,44710,84118,10317,80111,40719,376
63,043$ 72,609$ 78,571$ 83,072$ 84,240$ 85,047$
31,641$ 40,662$ 74,031$ 88,772$ 89,357$ 91,324$
39,66744,76122,85816,96323,98616,622
22,14025,30030,04931,40925,39531,841
93,448$ 110,723$ 126,938$ 137,144$ 138,738$ 139,787$
Fiscal Year
85
Expenses 2002200320042005
Governmental activities:
General government **2,337$ 2,617$
Public safety **4,6885,773
Physical environment **421 278
Transportation/public works **1,0561,172
Economic environment **32 13
Human services **132 149
Culture and recreation **1,7421,816
Interest on long-term debt **350 255
Total governmental activities expenses **10,75812,073
Business-type activities:
Water **2,7073,015
Sewer **3,4233,572
Sanitation **1,6171,817
Stormwater **266 287
Total business-type activities expenses **8,0138,691
Total primary government expenses **18,771$ 20,764$
Program Revenues
Governmental activities:
Charges for services:
General government **963$ 1,042$
Public safety **807 912
Transportation/public works **250 36
Culture and recreation **1,009 463
Operating grants and contributions **591 512
Capital grants and contributions **- 1,644
Total governmental activities
program revenues **3,6204,609
Business-type activities:
Charges for services:
Water **4,342$ 4,320$
Sewer **2,8323,295
Sanitation **1,8112,088
Stormwater **571 627
Operating grants and contributions **105 138
Capital grants and contributions **7,0956,287
Total business-type activities
program revenues **16,75616,755
Total primary government program revenues**20,376$ 21,364$
* Data not available prior to the implementation of GASB Statement 34 in 2004.
Fiscal Year
City of Clermont, Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
86
200620072008200920102011
3,232$ 3,297$ 4,204$ 4,747$ 4,287$ 3,643$
7,1098,78310,33010,77512,45912,531
382 470 514 364 319 279
1,3221,2551,5441,1641,7681,661
181 52 48 101 50 102
77 130 107 0 0 0
1,8512,4412,0612,0822,0551,822
285 226 459 326 175 156
14,43916,65419,26719,55921,11320,194
3,4272,9873,7373,9904,3164,461
4,0243,8964,5214,4895,9276,022
1,7311,8162,1232,0862,1692,364
316 427 549 534 848 955
9,4989,12610,93011,09913,26013,802
23,937$ 25,780$ 30,197$ 30,658$ 34,373$ 33,996$
1,037$ 1,116$ 1,582$ 1,854$ 1,857$ 1,695$
1,1581,105 975 1,203 665 355
- - - - - -
1,566 882 761 99 872 539
523 9231,047 921 1,162 1,237
1052,5187,330 3,307 134 129
4,3896,54411,6957,3844,6903,955
4,839$ 5,502$ 5,654$ 4,909$ 4,817$ 5,377$
3,7844,2424,422 4,655 4,852 5,065
2,2362,4022,515 2,560 2,613 2,688
689 729 766 801 829 855
11 38 700 - - -
6,4083,6761,480 2,137 1,544 999
17,96716,58915,53715,06214,65514,984
22,356$ 23,133$ 27,232$ 22,446$ 19,345$ 18,939$
Fiscal Year
87
City of Clermont, Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
20022003 20042005
Net (expense)/revenue
Governmental activities **(7,138)$ (7,464)$
Business-type activities **8,7438,064
Total primary government net expense **1,605$ 600$
General Revenues and Other Changes
in Net Assets
Governmental activities:
Taxes
Property taxes **3,371$ 4,417$
Franchise fees **1,1281,357
Utility taxes 1,3821,552
Unrestricted intergovernmental revenues **3,2793,923
Unrestricted investment earnings
and miscellaneous revenues **1861,181
Transfers **385 377
Total governmental activities **9,73112,807
Business-type activities:
Investment earnings **390$ 825$
Transfers **(385)(377)
Total business-type activities **5 448
Total primary government **9,736$ 13,255$
Change in Net Assets
Governmental activities **2,593$ 5,343$
Business-type activities **8,7488,512
Total primary government **11,341$ 13,855$
* Data not available prior to the implementation of GASB Statement 34 in 2004.
Fiscal Year
88
200620072008200920102011
(10,050)$ (10,110)$ (7,572)$ (12,175)$ (16,422)$ (16,240)$
8,4697,4634,6053,9641,3951,182
(1,581)$ (2,647)$ (2,967)$ (8,211)$ (15,027)$ (15,058)$
5,665$ 7,452$ 7,749$ 7,601$ 6,844$ 5,966$
1,7141,8081,9112,1512,3732,285
1,7821,8811,9922,1522,5582,568
4,9534,9524,7764,4584,5034,664
8351,216 9011,050 525 478
464 509 496 469 443 520
15,41317,81817,82517,88117,24616,481
1,968$ 2,612$ 1,853$ 1,005$ 360$ 145$
(464)(509)(496) (469) (443) (520)
1,5042,1031,357 536 (83)(375)
16,917$ 19,921$ 19,182$ 18,417$ 17,163$ 16,106$
5,363$ 7,708$ 10,253$ 5,706$ 824$ 241$
9,9739,5665,9614,5001,312 807
15,336$ 17,274$ 16,214$ 10,206$ 2,136$ 1,048$
Fiscal Year
89
2002 2003 2004 2005
General fund
Reserved 162$ 167$ 168$ 198$
Unreserved 2,559 3,110 4,207 5,758
Total general fund 2,721$ 3,277$ 4,375$ 5,956$
All other governmental funds
Reserved 512$ 760$ 894$ 1,083$
Unreserved, reported in:
Special revenue funds 1,003 2,318 3,410 5,028
Capital projects fund 4,423 106 - 926
Total all other governmental funds 5,938$ 3,184$ 4,304$ 7,037$
Post GASB 54
2011
General fund
Non spendable 335$
Restricted 175
Assigned 912
Unassigned 10,048
Total general fund 11,470$
All other governmental funds
Non spendable 848$
Restricted 6,359
Assigned 2,854
Unassigned (1)
Total all other governmental funds 10,060$
Fiscal Year
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
90
2006 2007 2008 2009 2010
233$ 307$ 209$ 214$ 246$
4,857 9,128 9,57210,86011,358
5,090$ 9,435$ 9,781$ 11,074$ 11,604$
1,189$ 1,539$ 1,912$ 2,267$ 2,758$
7,76710,771 5,314 4,147 4,839
780 843 4,496 3,271 2,978
9,736$ 13,153$ 11,722$ 9,685$ 10,575$
Fiscal Year
91
2002 2003 20042005
Revenues
Taxes 5,752$ 6,794$ 6,791$ 8,391$
Licenses and permits 253 277 467484
Intergovernmental revenue 1,4081,1522,7585,216
Charges for services 367 378 381389
Fines and forfeitures 112 114 125164
Impact fees/special assessments 1,3141,4241,5921,152
Investment income 141 145 107267
Miscellaneous 177 219 541310
Total revenues 9,52410,50312,76216,373
Expenditures
General government 1,117$ 1,338$ 1,432$ 2,053$
Public Safety 3,1183,6064,2745,285
Physical environment 42 35 278318
Transportation 622 8061,055917
Economic environment 44 39 32 33
Human services 58 89 122139
Culture and recreation 1,1621,3161,0091,025
Capital outlay 3,2055,3512,7522,484
Debt service
Principal 396 236 507855
Interest 92 257 268258
Other charges 211 - - -
Total expenditures 10,06713,07311,72913,367
Excess of revenues
over (under) expenditures (543)$ (2,570)$ 1,033$ 3,006$
Other financing sources (uses)
Transfers in 1,468$ 1,182$ 1,217$ 1,081$
Transfers out (1,378)(863)(832)(704)
Debt issuance 6,965 27 800 -
Sale of capital assets - - - 931
Payments to refunded bond escrow agent (2,000)- - -
Total other financing sources (uses)5,055 3461,1851,308
Net change in fund balances 4,512$ (2,224)$ 2,218$ 4,314$
Debt service as a percentage of noncapital
expenditures 10.2%6.4%8.6%10.2%
Fiscal Year
City of Clermont, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
92
2006 2007 2008 2009 2010 2011
10,327$ 11,141$ 11,652$ 11,903$ 11,775$ 10,819$
456 491 835 674 678 528
4,2118,34011,9778,6665,7336,059
407 462 6431,1031,0361,013
226 175 321 178 189 186
2,4441,7171,209 9031,131 582
7381,101 687 848 379 148
505 3911,683 444 522 612
19,31423,81829,00724,71921,44319,947
2,694$ 3,079$ 3,640$ 3,654$ 4,081$ 3,272$
6,4529,14110,99910,27511,21211,625
343 461 497 490 309 275
9671,1892,9761,1291,6201,472
38 48 48 102 50 102
75 129 105 - - -
1,2591,55610,0241,8931,8781,792
10,235 941,9091,738 6431,923
868 4498,1766,259 493 470
244 440 465 375 181 162
- - - - - -
23,17516,58638,83925,91520,46721,093
(3,861)$ 7,232$ (9,832)$ (1,196)$ 976$ (1,146)$
1,676$ 1,265$ 6,468$ 6,684$ 2,088$ 3,274$
(1,212)(756)(5,971)(6,232)(1,645)(2,776)
5,250 - 8,250 - - -
- - - - - -
- - - - - -
5,714 5098,747 452 443 498
1,853$ 7,741$ (1,085)$ (744)$ 1,419$ (648)$
9.3%7.1%23.4%28.9%3.6%3.3%
Fiscal Year
93
Fiscal PropertyFranchise Utility
Year Tax Fees Tax Total
2002 2,038$ 806$ 1,855$ 4,699$
2003 2,592 922 1,981 5,495
2004 3,305 1,128 2,292 6,725
2005 4,321 1,357 2,617 8,295
2006 5,488 1,714 2,948 10,150
2007 7,155 1,808 3,138 12,101
2008 7,749 1,911 1,992 11,652
2009 7,601 2,151 2,152 11,904
2010 6,844 2,373 2,558 11,775
2011 5,966 2,285 2,568 10,819
Fiscal SalesState RevenueLocal Option
Year Tax Sharing Gas Tax Total
2002 464$ 192$ 226$ 882$
2003 541 207 243 991
2004 781 242 268 1,291
2005 930 328 275 1,533
2006 1,157 368 286 1,811
2007 1,210 388 325 1,923
2008 1,139 356 300 1,795
2009 1,033 302 289 1,624
2010 1,053 299 322 1,674
2011 1,100 328 306 1,734
Taxes Included in Unrestricted Intergovernmental Revenues
City of Clermont, Florida
Governmental Activities Tax Revenues by Source
(amounts expressed in thousands)
Last Ten Fiscal Years
(accrual basis of accounting)
94
Fiscal TotalEstimatedAssessed
Year Less:Total TaxableDirectActualValue as a
EndedReal*PersonalTax ExemptAssessedTaxTaxablePercentage of
Sep 30PropertyPropertyPropertyValueRateValueActual Value
2002626,84072,610128,222571,2283.729 699,45081.67%
2003793,58392,764166,209720,1383.729 886,34781.25%
20041,041,341112,546238,373915,5143.7291,153,88779.34%
20051,363,931133,687299,1621,198,4563.7291,497,61880.02%
20061,771,503153,086382,8851,541,7043.7291,924,58980.11%
20072,466,549171,470620,7502,017,2693.1422,638,01976.47%
20082,975,139186,835676,3712,485,6033.1423,161,97478.61%
20093,022,925195,808792,9972,425,7363.1423,218,73375.36%
20102,592,111211,950599,8212,204,2403.1422,804,06178.61%
20112,171,815209,726598,1871,783,3543.1422,381,54174.88%
Source: Lake County Property Appraisers Office
* Information on breakdown of residential and commercial property is not available.
City of Clermont, Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
95
Direct Rate
City of LakeSouthLakeSt. JohnsTotal
Clermont CountyLakeCountyRiver WaterDirect &
FiscalOperatingOperatingVotedAmbulanceSchoolHospitalWaterManagementOverlapping
YearMillageMillageDebt ServiceMSTUDistrictDistrictAuthorityDistrictRates
20023.72905.11700.00000.52898.20201.00000.50000.462019.5389
20033.72905.91700.00000.52898.39501.00000.48190.462020.5138
20043.72905.91700.00000.52898.44001.00000.40800.462020.4849
20053.72905.81700.00000.52897.99001.00000.38310.462019.9100
20063.72905.79700.00000.52897.98101.00000.33700.462019.8349
20073.14205.74700.20000.52897.64801.00000.25300.462018.9809
20083.14204.74100.20000.46517.69800.86660.21300.415817.7415
20093.14204.65110.11010.46517.51700.86660.21300.415817.3807
20103.14204.65110.11010.46517.53200.86660.21300.415817.3957
20113.14204.73090.11010.38537.52300.86660.24050.415817.4142
Source: Lake County Property Appraisers Office
1 Overlapping rates are those of local and county governments that apply to property owners within the City of Clermont.
2 Taxes levied for the fiscal year are based on the prior year taxable value.
Lake County
Overlapping Rates
City of Clermont, Florida
Property Tax Rates
Direct and Overlapping1 Governments
Last Ten Fiscal Years 2
(per $1,000 of assessed value)
96
Percentage of Percentage of
Taxable Total TaxableTaxable Total Taxable
Assessed AssessedAssessed Assessed
Taxpayer ValueRankValueValueRankValue
John P. Adams & Ann D. 26,014$ 11.46%
Adams Family LP
Fountains at Clermont LLC17,33220.97%
Westdale Sundance LDT 16,38730.92%
Citrus Tower Development14,38640.81%
Weingarten I-4 Clermont Landing 12,29350.69%
South Lake Hospital, Inc.12,01260.67%
Village at East Lake 11,65570.65%9,573$ 41.68%
Progress Energy Florida Inc.10,73080.60%10,11931.77%
Wal-Mart Stores East LP 10,10690.57%
Target Corporation 9,236100.52%
Clermont Center LTD 11,28911.98%
Lennar Land Partners 10,21921.79%
Lucas Clermont Ltd Partnership 7,47351.31%
Sprint Florida Inc 7,96761.39%
HEP-8-Cler LC 6,14571.08%
Osprey Ridge Apartments Inc.6,07781.06%
Florida Power Corporation 6,52291.14%
Mercator Properties, Inc.5,581100.98%
TOTAL 140,151$ 6.36%80,965$ 14.17%
Source: Lake County Property Appraiser
2011 2002
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
97
Fiscal
YearTotal Tax Collections in
EndedLevy for PercentageSubsequent Percentage
SeptemberFiscal YearAmountof LevyYearsAmountof Levy
2002 2,1302,05496.4%10 2,06496.9%
2003 2,6852,58696.3%9 2,59596.6%
2004 3,4143,29396.5%10 3,30396.8%
2005 4,4694,31096.4%5 4,31596.6%
2006 5,7495,54496.4%- 5,54496.4%
2007 7,5187,15595.2%17 7,17295.4%
2008 7,8107,42595.1%15 7,44095.3%
2009 7,6227,24395.0%22 7,26595.3%
2010 6,8146,53695.9%5 6,54196.0%
2011 5,9145,69896.3%15 5,71396.6%
Note: Property taxes become due and payable on November 1st of each year. A four (4) percent
discount is allowed if the taxes are paid in November, with the discount declining by one (1)
percent each month thereafter. Accordingly, taxes collected will never be 100 percent of the
tax levy.
Fiscal Year of the Levy
City of Clermont, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Total Collections to Date
Collected within the
98
Business-Type
Fiscal Activities
Year Water & SewerTotalPercentage
EndedRevenueNotesRefundingPrimaryof Personal
SeptBondsPayableRevenue BondsGovernmentIncome1 Per Capita1
20026,965$ 459$ 17,935$ 25,359$ *1,849$
20036,965381 17,93525,281 *1,643
20046,5751,064 17,93525,574 *1,449
20056,180605 17,83524,620 *1,230
20065,7755,392 17,68528,852 5.66%1,312
20075,3605,358 17,45528,173 5.63%1,231
20084,9355,857 17,06527,857 4.00%1,187
20094,495 38 16,65521,188 2.95%876
20104,040 0 16,64020,680 2.84%720
20113,570 0 16,10519,675 2.63%670
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 See the Schedule of Demographic and Economic Statistics on page 104 for personal income and population data.
* Information is not available.
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Governmental Activities
99
Percentage Amount
Total Applicable toApplicable to
OutstandingCity of Clermont (1)City of Clermont
Direct:
City of Clermont 3,570$ 100%3,570$
Overlapping:
Lake County 28,500 11%3,135
School District of Lake County 35,725 11%3,930
Total direct and overlapping debt
payable from ad valorem taxes 67,795$ 10,635$
Estimated Population 29,358
Total direct and overlapping debt per capita 362.24$
(1) Estimates based on ratio of assessed taxable values.
Note: The City of Clermont has no legal debt margin.
Sources: Lake County Clerk Finance Office
Lake County Property Appraiser's Office
(amounts expressed in thousands, except population and per capita amount)
City of Clermont, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2011
100
PublicCommunications Total Revenue
FiscalServiceServiceHalf-CentAvailable for
YearTaxesTaxSales TaxDebt ServicePrincipalInterestCoverage
20021,054,652$ 800,177$ 464,290$ 2,319,119$ $ -1 254,188$ 9.12
20031,172,270808,813540,7172,521,800390,000250,7753.94
20041,381,779910,725780,8633,073,367395,000243,1664.82
20051,552,0001,063,454929,7403,545,194405,000233,6535.55
20061,781,6261,163,9711,156,6944,102,291415,000222,3726.44
20071,881,0921,253,4251,209,7484,344,265415,000228,3386.75
20081,992,0181,279,6531,139,3154,410,986425,000209,6066.95
20092,151,3181,257,3441,033,1414,441,803440,000195,1066.99
20102,558,2811,266,6961,053,0734,878,050455,000179,1597.69
20112,568,1411,233,7891,100,1254,902,055470,000161,8067.76
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 No principal payments were scheduled in this the period in which the debt was issued.
Public Improvement Revenue Bonds, Series 2002
Debt Service
City of Clermont, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years
101
StateTotal Revenue
FiscalInfrastructureAvailable for
Year Tax Debt ServicePrincipalInterestCoverage
2002 752,740$ 752,740$ 225,000$ 24,915$ 3.01
2003 996,162 996,162130,000 9,165 7.16
2004 1,233,5981,233,598 - 1 - 1 - 1
2005 1,538,4981,538,498 - 1 - 1 - 1
2006 1,934,4551,934,455 - 1 - 1 - 1
2007 1,920,4861,920,486 - 1 - 1 - 1
2008 1,900,6401,900,640 - 1 - 1 - 1
2009 1,764,9491,764,949 - 1 - 1 - 1
2010 1,780,1771,780,177 - 1 - 1 - 1
2011 1,899,2021,899,202 - 1 - 1 - 1
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 All outstanding revenue bonds were paid in full as of June 1, 2003.
Debt Service
Last Ten Fiscal Years
Sales Tax Revenue Bonds, Series 1989
City of Clermont, Florida
Pledged-Revenue Coverage
102
Water andWater and
SewerSewerNet Revenue
FiscalOperatingOperatingAvailable for
YearRevenues1 Expenses2 Debt ServicePrincipalInterestCoverage
20025,124,778$ 2,952,556$ 2,172,222$ $ -3 932,128$ 2.33
20035,901,9073,461,2162,440,691 -3 932,1282.62
20047,261,2394,339,9592,921,280 -3 932,1283.13
20057,841,8304,773,6393,068,191100,000929,9282.98
20069,421,8345,456,6893,965,145150,000924,3533.69
200712,875,1708,820,9324,054,238230,000915,8023.54
200810,075,7067,192,3142,883,392390,000892,6882.25
200910,561,9496,511,4874,050,462410,000883,2063.13
201010,001,8366,999,0963,002,740430,000744,892 4 2.56
201110,561,2957,080,5923,480,703535,000660,6402.91
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 Operating revenue is computed per bond resolution requirements. Investment earnings are included.
2 Operating expense is computed per bond resolution requirements. Depreciation expense is not included.
3 On November 21, 2000, the City defeased its 1972 and 1988 bond issues and paid off a 1996 Bond
Anticipation note that was due December 1, 2000. Principal payments were not due until December 1, 2004.
4 Includes interest paid on the 2000 and 2009 Refunding Bonds
Water and Sewer Revenue and Refunding Bonds
Debt Service
City of Clermont, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years
103
Personal Education
Income Level in
(amountsPer Capita Years of
Fiscal expressed inPersonalMedianFormalSchoolUnemploy-
YearPopulation1 thousands)Income2 Age2 Schooling2 Enrollment3 ment Rate4
200213,718****4,6165.8%
200315,391****4,6305.4%
200417,654****5,2194.6%
200520,017****5,1654.0%
200621,986509,98723,19635.913.55,6403.3%
200722,882500,33821,86636.813.65,9153.8%
200823,476696,04029,64939.613.25,4367.1%
200924,199717,59729,65439.713.24,90012.3%
201028,742727,00025,29436.813.65,02412.4%
201129,358748,48225,49540.913.65,11610.6%
Sources:1 College of Business Administration, University of Florida - Bureau of Economic and Business Research
2 Metro Orlando Economic Development Commission
3 Lake County School Board
4 U.S. Department of Labor, Bureau of Labor Statistics
Note: Unemployment rate information is available on a countywide basis only.
* Information is not available.
City of Clermont, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
104
Percentage of Percentage of
Total City Total City
Employer EmployeesRankEmploymentEmployeesRankEmployment
Total City Employment20,6048,114
South Lake Hospital, Inc.1,20015.82%60817.49%
Lake County Sheriff's Office 77423.76%
Lake County School System 46532.26%43525.36%
Publix Supermarkets 35941.74%21532.65%
Lowe's 32051.55%
Target Corporation 31061.50%
Walmart 28271.37%
City of Clermont 26181.27%16252.00%
Winn Dixie 20791.00%1057
Progressive Plumbing Inc 200100.97%8591.05%
Westminister Care of Clermont 20042.46%
Kmart 12061.48%
CBS Builders Supply Inc.10081.23%
Kash-N-Karry 65100.80%
TOTAL 3,178 15.42%1,487 18.33%
Source: Florida Agency for Workforce Innovation, Labor Market Statistics Center
2011 2002
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
105
Usage Percentage ofUsage Percentage of
(thousands Total City(thousands Total City
Employer of gallons)RankMetered Flow1 of gallons)RankMetered Flow
Kings Ridge 276,474112.15%* * *
City of Clermont 27,05421.19%* * *
South Lake Hospital 24,73731.09%* * *
Lake County Schools 24,24941.07%* * *
Westminster Comm Care Service15,79050.69%* * *
Gardens at Citrus Tower 12,30060.54%* * *
The Vista at Lost Lake 11,70170.51%* * *
Sundance Clermont Apartments8,57480.38%* * *
Osprey Ridge Apartments LTD8,13190.36%* * *
Emerald Lakes of Clermont 7,817100.34%* * *
TOTAL 416,827 18.31%* *
1 The City of Clermont had a total metered water flow of approximately 2,275,936,180 gallons for the
12-month period ending September 30, 2011
* Information is not available.
2011 2002
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
106
Usage Percentage ofUsage Percentage of
(thousands Total City(thousands Total City
Employer of gallons)RankMetered Flow1 of gallons)RankMetered Flow
South Lake Hospital 26,26411.78%* * *
Lake County Schools 17,92821.21%* * *
The Vista at Lost Lake 14,10230.95%* * *
Westminster Comm Care Service13,90140.94%* * *
Village at East Lake 11,09650.75%* * *
Hwy 27 17156 LLC (BP)3,79560.26%* * *
Olive Garden 3,59970.24%* * *
Walmart 3,26580.22%* * *
Empirian Property Management3,10590.21%* * *
Superior Residences of Clermont2,443100.17%* * *
TOTAL 99,498 6.73%* *
1 The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,477,656,774
gallons for the 12-month period ending September 30, 2011
* Information is not available.
2011 2002
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
107
Function 2002 2003 2004 2005
General Government 17.0023.0022.5025.50
Public Safety:
Police
Sworn personnel 29.0031.0034.0038.00
Non sworn personnel 10.0011.0012.0016.00
Fire
Firefighters 12.0013.0019.0022.00
Other personnel 1.00 1.00 1.00 1.00
Physical Environment - 0.50 7.50 7.50
Transportation 11.3513.1613.2513.25
Human Services 1.00 1.75 2.25 2.25
Culture & Recreation 20.7523.5019.4519.45
Water 18.7220.3222.9023.40
Sewer 19.0219.2225.8025.30
Stormwater 2.20 4.49 4.65 4.65
Sanitation 8.96 9.06 8.70 8.70
Total 151.00171.00193.00207.00
Source: City of Clermont Administrative Services Department.
Full-time Equivalent Employees as of September 30,
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
108
2006 2007 2008 2009 2010 2011
27.5030.5030.5031.0028.0027.00
45.0051.0053.0053.0057.0057.00
16.0016.0017.0017.0016.00 5.00
38.0045.0049.0047.8548.0048.00
2.00 2.00 2.00 2.00 2.00 2.00
10.0010.0010.0011.6510.90 5.40
13.7015.2015.6015.6015.3513.50
2.00 2.00 2.00 0.00 0.00 0.00
22.2026.2026.6025.6021.1022.00
25.4026.9029.4029.4029.1529.15
26.3027.8026.3026.3026.0525.85
7.20 8.70 8.80 8.80 9.15 9.40
8.7014.7016.8016.8016.3016.70
244.00276.00287.00285.00279.00261.00
Full-time Equivalent Employees as of September 30,
109
Function 2002 2003 2004 2005
General Government
Municipal boundary (square miles)11.1811.8811.9712.45
Business Tax Receipts issued 1,2901,4681,5511,795
A/P Checks issued 4,8084,9404,9675,415
Commercial construction (units)39 22 24 23
Commercial construction
(value in thousands)52,34318,75814,2727,115
Residential construction (units)829 9591,155 673
Residential construction
(value in thousands)77,470124,837158,458103,672
Public Safety:
Police
Auto accidents 390 489 541 671
Physical arrests 465 449 414 500
911 calls received * * 5,5806,262
Evidence processed (pieces)1,1231,0751,0541,127
Parking violations 36 48 87 71
Traffic violations 3,6232,7132,3942,855
Fire
Volunteer firefighters 34 34 34 27
Fire inspections completed 494 441 483 457
Emergency calls answered 2,2712,5063,0933,321
Non-emergency calls answered 77 86 143 143
Human Services
Animals captured**521 364 562 445
Water
Residential customers 8,46110,52912,75114,284
Commercial customers 644 723 817 921
Annual water usage
(thousands of gallons)1,299,7011,338,8181,655,2031,788,337
Sewer
Residential customers 6,2437,6509,21710,176
Commercial customers 581 673 767 883
Sources: Various government departments.
* Data not available.
** Program was discontinued in FY 07-08
Fiscal Year
City of Clermont, Florida
Operating Indicators by Function
Last Ten Fiscal Years
110
2006 2007 2008 2009 2010 2011
14.1314.3714.4214.4314.7616.11
1,9852,1412,2631,7711,8331,843
5,6646,0236,4406,0425,7224,875
38 24 42 19 10 3
17,53424,43318,85913,2238,35718,020
635 324 301 204 305 151
186,189136,47756,57856,09253,20223,558
6251,1921,272 972 9551,121
707 933 842 949 854 699
7,0086,3176,0466,8285,2305,587
1,6101,5851,3001,6521,3491,297
161 140 145 107 137 378
5,2595,1645,1034,5534,9816,312
27 9 8 10 6 6
625 414 880 9792,121 896
3,1323,0483,1773,1553,1123,822
189 198 234 434 352 805
495 652 - - - -
15,73316,39416,95917,37511,37614,174
9931,0691,1561,2011,0331,210
2,121,5882,654,3522,589,6642,312,9622,054,2362,275,936
11,12511,55411,91312,15411,58312,722
9551,0311,1201,158 9441,167
Fiscal Year
111
Function 2002 2003 20042005
General Government
Public Safety:
Police
Police stations 1 1 1 1
Patrol units 29 31 34 38
Fire
Fire stations 3 3 3 3
Staffed fire stations 2 2 2 2
Fire hydrants 940 1,064 1,2001,431
Fire apparatus 6 7 7 8
Staffed fire apparatus 2 2 2 3
ALS non-transport units 1 2 3 3
Transportation
Streets paved (miles)88.74 92.90 97.00101.39
Streetlights 1,056 1,056 1,1061,131
Culture & Recreation
Number of parks 22 22 22 22
Parks acreage 101.5 101.5 101.5101.5
Scenic linear trail (miles)3.5 3.5 3.5 5.7
Tennis courts 6 6 8 8
Fishing piers 4 4 4 4
Boat ramp 1 1 1 1
Libraries 1 1 1 1
Water
Miles of water mains 88.74 88.74 92.9497.23
Miles of sanitary sewers 39.05 39.05 41.1544.26
Miles of storm sewers 9.11 9.11 9.5310.27
Sources: Various government departments.
Fiscal Year
Last Ten Fiscal Years
Capital Asset Statistics by Function
City of Clermont, Florida
112
2006 2007 2008 2009 2010 2011
111111
45 45 45 45 45 46
333344
233333
1,630 1,896 2,140 2,140 2,012 2,016
999987
455555
333444
109.94122.93126.16131.72133.20191.73
1,231 1,256 1,331 1,331 1,352 1,352
22 22 22 22 22 23
349.5 349.5 349.5 349.5 349.5 349.5
5.7 5.7 5.7 5.7 5.7 5.7
889999
444444
111111
111111
104.52115.02115.98122.83124.11197.40
49.51 56.98 59.40 65.18 66.19182.02
11.13 18.07 20.88 24.61 26.32 89.80
Fiscal Year
113
114
115
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
We noted certain matters that we reported to management of City of Clermont, Florida, in a
separate letter dated March 5, 2012.
This report is intended solely for the information and use of management, the City Council
and the Auditor General of the State of Florida, and is not intended to be, and should not be
used by anyone other than these specified parties.
March 5, 2012
116
^^
C
I
T
T
O
F
C
L
E
R
M
O
N
T
Af
f
i
d
a
v
i
t
o
f
I
m
p
a
c
t
F
e
e
C
o
m
p
l
i
a
n
c
e
Im
p
a
c
t
f
e
e
c
o
l
l
e
c
t
i
o
n
s
,
e
x
p
e
n
d
i
t
u
r
e
s
a
n
d
a
c
c
o
u
n
t
i
n
g
a
r
e
p
r
o
v
i
d
e
d
f
o
r
in
s
e
p
a
r
a
t
e
a
c
c
o
u
n
t
i
n
g
f
u
n
d
s
a
n
d
c
o
m
p
l
y
w
i
t
h
F
l
o
r
i
d
a
S
t
a
t
u
t
e
1
6
3
.
3
1
8
0
1
.
J/
s
e
p
Zi
l
e
A
d
m
i
at
i
v
e
S
e
r
v
i
c
e
s
D
i
r
e
c
t
o
r
.
Th
e
j
o
r
e
g
o
i
n
g
i
n
s
t
r
u
m
e
n
t
w
a
s
a
c
k
n
o
w
l
e
d
g
e
d
b
e
f
o
r
e
m
e
t
h
i
s
C
^
h
~
>
d
a
y
o
f
m
c
^
-
,
2
0
1
2
b
y
J
o
s
e
p
h
V
a
n
Z
i
l
e
.
O
r
-
^
B
B
O
K
i
e
.
v
e
u
N
Q
^^
^
-
~
N
O
T
A
R
Y
P
U
B
L
I
C
»
S
T
A
T
E
O
F
F
L
O
R
I
D
A
C
o
m
m
#
D
D
8
1
0
0
7
1
No
t
a
r
y
S
i
g
n
a
t
u
r
e
&
S
j
i
f
i
m
p
.
<
Ex
p
i
r
e
s
1
0
/
3
1
/
2
0
1
2
Pe
r
s
o
n
a
l
l
y
K
n
o
w
n
^
or
P
r
o
d
u
c
e
d
I
d
e
n
t
i
f
i
c
a
t
i
o
n
Ty
p
e
o
f
I
d
e
n
t
i
f
i
c
a
t
i
o
n
P
r
o
d
u
c
e
d
P.
O
.
B
O
X
1
2
0
2
1
9
.
C
L
E
R
M
O
N
T
,
F
L
O
R
I
D
A
3
4
7
1
2
-
0
2
1
9
P
H
O
N
E
:
3
5
2
-
2
4
1
-
7
3
6
0
F
A
X
:
3
5
2
-
3
9
4
-
4
0
8
2
.
.
w
w
w
.
C
i
t
v
o
f
C
l
e
r
m
o
n
t
F
L
.
c
o
m
11
7
118
119
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may,
based on professional judgment, report the following matters that have an
inconsequential effect on the financial statements, considering both quantitative and
qualitative factors: (1) violations of provisions of contracts or grant agreements, fraud,
illegal acts, or abuse, and (2) deficiencies in internal control that are not significant
deficiencies. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official
title and legal authority for the primary government and each component unit of the
reporting entity be disclosed in this management letter, unless disclosed in the notes to
the financial statements. This information has been disclosed in the notes to the
financial statements.
Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included
as to whether or not the local governmental 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 City of Clermont,
Florida did not meet any of the conditions described in Section 218.503(1), Florida
Statutes.
Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the City of Clermont, Florida for the fiscal year
ended September 30, 2011 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, 2011. We determined that
these two reports are in agreement.
Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we
applied financial condition assessment procedures. It is management’s responsibility to
monitor the entity’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 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
management, and the Florida Auditor General, and is not intended to be and should not be used
by anyone other than these specific parties.
March 5, 2012
120
CITY OF CLERMONT, FLORIDA
APPENDIX A - PRIOR YEAR RECOMMENDATIONS
Year Ended September 30, 2011
No.Prior Year's Observations
Observation
is Still
Relevant
Observation
Addressed or
No Longer
Relevant
ML 10-1 Appropriations in excess of funds available X
ML 10-2 Deficit Net Assets X
121
122
123
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level
of management. Management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were
material, either individually or in the aggregate, to the financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction,
that could be significant to the financial statements or the auditor’s report. We are pleased to
report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated March 5, 2012.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a
consultation involves application of an accounting principle to the governmental unit’s financial
statements or a determination of the type of auditor’s opinion that may be expressed on those
statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the governmental unit’s
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
With respect to the supplementary information accompanying the financial statements, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the
prior period, and the information is appropriate and complete in relation to our audit of the
financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
This information is intended solely for the use of management, the City Council and the Auditor
General of the State of Florida and is not intended to be and should not be used by anyone
other than these specified parties.
Very truly yours,
March 5, 2012
124