Comprehensive Annual Financial Report - 2005-2006City of Clermont, Florida
i
Comprehensive Annual Financial Report
Fiscal Year Ending September 30, 2006
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Pictured on the cover is a view of Lake Minneola from the new
recreation property purchased in July 2006. This property is
approximately 220 acres with approximately 2,000 feet of lake front
on Lake Minneola. This land will be used for a passive park.
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City of Clermont, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2006
Prepared by: Administrative Services Department
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CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2006
It. Financial Section:
Independent Auditor's Report 1-2
Management's Discussion and Analysis 3-14
Basic Financial Statements:
Government -Wide Financial Statements:
Page
Introductory Section:
15
Table of Contents
Hi
Letter of Transmittal
iii -viii
GFOA Certificate of Achievement
Ix
List of Principal Officials
x
Organizational Chart
A
It. Financial Section:
Independent Auditor's Report 1-2
Management's Discussion and Analysis 3-14
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Assets
15
Statement of Activities
16
Fund Financial Statements:
Balance Sheet - Governmental Funds
17
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
18
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of
Activities
19
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - General Fund
20-21
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual — Infrastructure Special Revenue Fund
22
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual — Community Redevelopment
Special Revenue Fund
23
Statement of Net Assets - Proprietary Funds
24-25
Statement of Revenues, Expenses and Changes in
Fund Net Assets - Proprietary Funds
26
Statement of Cash Flows — Proprietary Funds
27-28
Statement of Fiduciary Net Assets - Fiduciary Funds
29
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds
30
Notes to Financial Statements
31-55
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CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2006
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 94-95
Affidavit of Impact Fee Compliance 96
Page
II. Financial Section - Continued:
Nonmajor Governmental Funds:
Combining Balance Sheet — Nonmajor Governmental Funds
56-57
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Nonmajor Governmental Funds
58-59
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual:
Special Revenue Funds
60-62
Debt Service Fund
63
Capital Project Fund
64
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets
65
Combining Statement of Changes in Fiduciary Net Assets
66
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Function and Activity
67
III. Statistical Section:
Net Assets by Component
68-69
Changes in Net Assets
70-71
Governmental Activities Tax Revenues by Source
72
Fund Balances of Governmental Funds
73-74
Changes in Fund Balances of Governmental Funds
75-76
Assessed Value and Estimated Actual Value of Taxable Property
77
Property Tax Rates — Direct and Overlapping Governments
78
Principal Property Taxpayers
79
Property Tax Levies and Collections
80
Ratios of Outstanding Debt by Type
81
Pledged -Revenue Coverage
82-84
Demographic and Economic Statistics
85
Principal Employers
86
Principal Water Customers
87
Principal Sewer Customers
88
Full-time Equivalent City Government Employees by Function
89
Operating Indicators by Function
90-91
Capital Asset Statistics by Function
92-93
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 94-95
Affidavit of Impact Fee Compliance 96
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February 28, 2007
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
Clermont, Florida, for the fiscal year ended September 30, 2006. 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, 2006.
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, 2006, 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, 2006, 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
transmittal is designed to complement the MD&A and should be read in conjunction with
it.
iii
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Profile of the City of Clermont
The City was founded in 1884 and incorporated in 1916. The City currently has a land
area of 14.13 square miles and population of approximately 22,097. 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 22
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. Clermont is home to the USA
Triathlon National Training Center. This training center, which is part of South Lake
Hospital, is a place where local residents and national and international athletes of all
levels can pursue their individual health, wellness and fitness goals. Clermont is proud
to be known internationally for hosting many triathlon events.
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, animal/mosquito control, recreational facilities and
programs, cemetery and general administrative functions. The City also operates and
maintains water, wastewater treatment, stormwater and sanitation utilities.
The Clermont Police Department is proud to be recognized by The Commission on
Accreditation for Law Enforcement Agencies as a state accredited agency. The
Clermont Fire Department has evolved from a volunteer fire department in 1999 to its
current status of 73 personnel positions, which include 40 full-time personnel. Advanced
Life Support emergency medical service was implemented in 2001 and there are three
fire stations providing fire and advanced life support twenty-four hours a day, seven days
per week. The City's Utilities Department provides potable water service, wastewater
collection and treatment services and reclaimed water production and distribution
services to our utility customers. Both the Utility and Engineering Departments were
selected by the Central Florida Section of the Society of Women Engineers as the Public
Organization of the Year. This award was based on five areas: engineering projects
benefiting the public, employees active in professional organizations, community
involvement, promoting education and programs to respond to citizens concerns.
The City operates according to a Council/Manager form of government, with an
appointed City Manager, four elected City Council members and a separately elected
Mayor. The governing body has legislative responsibilities including setting policy,
passing ordinances, adopting the budget, appointing committees, and hiring the City's
iv
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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 heads 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
and final amended budget -to -actual comparisons are provided in this report for each
individual governmental fund. The General Fund is presented on pages 20-21, the
Infrastructure Special Revenue Fund is presented on page 22 and the Community
Redevelopment Special Revenue fund is presented on page 23 as part of the basic
financial statements for the governmental funds. For other governmental funds, these
comparisons are presented in the governmental fund subsection of this report, which
starts on page 60.
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. Tourism, as
well as the economy of the City of Orlando, influences the City's economic environment.
Lake County's unemployment rate is 3.1%. This compares favorably to the state's
unemployment rate of 3.2% and the national rate of 4.5%. Educational institutions in
Clermont such as Lake -Sumter Community College and the University of Central Florida
assist in supplying a skilled labor force. South Lake Hospital, the City's largest
employer, is a significant economic presence that provides employment to nearly 1,000
healthcare professionals and staff. The hospital has also attracted many new medical
offices to the area.
The City's total assessed valuation for real and personal property increased 28.6% from
the previous year. The expanding tax base has provided increased revenue enabling
the City to fund necessary projects and personnel needed to maintain the adopted levels
of service while maintaining a property tax rate of 3.729 mills. This rate has remained
the same for the past six years and is one of the lowest in Central Florida.
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.
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Major initiatives. The following items are capital projects that are currently planned for
the City:
• The City has been awarded Community Development Block Grant for
neighborhood revitalization in the amount of $700,000. The grant will be used for
the installation of storm drainage along Bloxam Avenue. The total budget for this
project is $1,600,000. The remainder of the project costs will be funded by
reserves in the Stormwater Utility Fund.
The City is currently planning for the construction of a new community center
located on Lake Minneola near Waterfront Park. Currently estimated to cost
$9,000,000, the planned facility will accommodate weddings, meetings, and
various community functions. This project is being funded through reserves that
have been accumulated from the infrastructure sales tax and recreation impact
fees.
Currently in the engineering phase, the East Water Reclamation Facility
Expansion project includes construction of processes to upgrade the treatment
capacity from two million gallons per day to four million gallons per day. Other
improvements in the project include the addition of reclaimed water storage and
distribution piping to deliver reclaimed water to existing customers. The total
budget for the improvements is $19,900,000. The project is anticipated to be
funded from sewer utility reserves and sewer impact fees.
• The Greater Hills Water Treatment Plant expansion project includes construction
of a one million gallon ground storage tank and a bank of high service pumps to
deliver potable water to the distribution system. Also included in the project is a
new potable well and associated piping. The total budget for the improvements
is $6,100,000. The project is anticipated to be funded from water utility reserves
and water impact fees.
The City has negotiated the purchase of approximately 220 acres of recreation
land over the next five (5) years for a total cost of $16,500,000. The land is
undeveloped with approximately 2,000 feet of lake front on Lake Minneola. The
land will be used for a passive park. Funding for the acquisition of this property
will come from county and state grants with matching funds from the city
Infrastructure Fund and Recreation Impact Fee Fund. Total grant funds of
approximately twelve million are anticipated over the next five (5) years to assist
in the acquisition.
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
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Through careful short and long range planning, conservative budgeting and sound
management practices, the projects noted in the major initiatives section are anticipated
to be accomplished without incurring any additional debt. Slowed building permits for
new home construction are being monitored closely, since impact fee revenue is directly
impacted by the housing market. This slowed growth can also impact the growth of ad
valorem, utility tax and franchise fee revenues in future years. The City is also
monitoring current state legislation regarding ad valorem taxes. Changes in the current
structure of the tax law could adversely impact this revenue within the next two years.
Because of these circumstances, we are actively monitoring expansion projects and
adding of additional personnel that will require multi-year funding commitments.
Clermont City Council and management 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 $58,215,345 and the average
investment earnings rate was 4.5%. 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 average total pension fund assets
during the year were $9,042,667 and the average investment income was 6.9%.
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, 2005. This was the eighteenth consecutive year that the government
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.
vii
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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 Lisa Strickland, Accountant for her 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.
Respectfully submitted,
Wayn4jaunders
City Manager
viii
r
eph Va ile
Adminis tiv ervices Director
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 13
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Clermont
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2005
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
ca
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ix
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CITY OF CLERMONT, FLORIDA
LIST OF ELECTED AND APPOINTED OFFICIALS
SEPTEMBER 30, 2006
Mayor
Mayor Pro -Tem
Council Member
Council Member
Council Member
ELECTED OFFICIALS
Harold Turville, Jr.
Keith Mullins
Ray Goodgame
Jack Hogan
Elaine Renick
APPOINTED OFFICIALS
City Manager
Wayne Saunders
City Attorney
Dan Mantzaris
Administrative Services Director
Joseph Van Zile
Public Services Director
Preston Davis
Chief of Police
Stephen Graham
Fire Chief
Carle Bishop
Utility Director/City Engineer
Tamara Richardson
Planning Director
James Hitt
City Clerk
Tracy Ackroyd
ix
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :22 PM Page 15
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 17
MCDIRMIT /// DAMS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Clermont, Florida
Clermont, Florida
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
City of Clermont, Florida, as of and for the year ended September 30, 2006, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Clermont, Florida, as of
September 30, 2006, and the respective changes in financial position and cash flows, where
applicable, thereof and the respective budgetary comparisons for the general fund and the
infrastructure special revenue fund for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
MCDIRMIT DAVIT & COMPANY, LLC
605 E. ROBINSON STREET, SORE 635 • ORLANDO, FLORIDA 32801
TELEPHONE 407-843-5406 • FAX 407-649-9339 • ENIA1L: INFO@MCDIRMITDA49S.COM
MEMBERS: PRIVATE COMPANIES PRICTICE SECTION • AMERICAN LNSTITLTF. OF CERTIFIED PIIDLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLICACCDUNTANIS
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 18
In accordance with Government Auditing Standards, we have also issued a report dated
November 15, 2006 on our consideration of the City of Clermont, Florida's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the result of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report in considering the results of
our audit.
The Management's Discussion and Analysis starting on page 3 is not a required part of the
basic financial statements but is supplemental information required by the accounting principles
generally accepted in the United States of America. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the supplemental information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Clermont's basic financial statements. The introductory section,
combining and individual nonmajor 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
have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole. The introductory section and the statistical section have
not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
November 15, 2006
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 19
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, 2006. 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 A of this report.
Financial Highlights
• The City of Clermont's assets exceeded its liabilities at September 30, 2006 by
$93,448,270 (net assets). Of this amount, $22,140,058 (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 $15,335,938 (or 19.3%) over the previous fiscal
year.
• At September 30, the City of Clermont's governmental funds reported combined ending
fund balances of $14,845,823, an increase of $1,852,362 over the previous fiscal year.
Most of this total amount is available for spending at the government's discretion
(unreserved fund balance).
• The General Fund, the City's primary operating fund, reported an unreserved fund
balance of $4,857,413, which represents 23% 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 15 and 16 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).
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 20
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
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, human services, and culture and recreation. The business -type activities of the City
of Clermont include water, sewer, sanitation, and stormwater utilities.
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 nine 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, and the Infrastructure
Fund and the Community Redevelopment Fund, all of which are considered to be major funds.
Data from the other six governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor 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 to demonstrate
compliance with this budget at page 20. Budgetary comparison schedules have been provided for
the Infrastructure Fund and the Community Redevelopment Fund on pages 22-23. Other
nonmajor funds comparisons can be found on pages 60-64.
The basic governmental fund financial statements can be found on pages 17 - 23 of this report.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 21
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Proprietary funds. The City of Clermont maintains two types of proprietary funds: enterprise and
internal service, which can be found on pages 24-28 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.
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 29 - 30 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 - 55 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor
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 56 -
67 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 15.
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MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
CITY OF CLERMONT'S Net Assets
The City's total net assets at September 30, 2006 was $93,448,270. Of the City's total net assets
$31,641,027 (34%) 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, $39,667,185 (42%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of the City's
total net assets, $22,140,058 (24%) is unrestricted. These assets may be used at the City's
discretion in meeting its ongoing obligations to citizens and creditors.
The City's net assets increased by $15,335,938 during the current fiscal year. Almost half of this
increase was due to a recreation land purchase, and the construction in progress of the Sunburst
and Greater Hills Water Treatment Plants and a reclaimed water plant, which significantly
increased capital assets. Restricted reserves represent the accumulation of impact fee funds for
upcoming and ongoing capital projects. Unrestricted reserves represent increases in investment
cash in governmental funds. The increase is due to actual revenues exceeding anticipated
revenues, which is the result of growth in the City's tax base.
The following is a summary of the City's governmental and business -type activities for fiscal year
2005-06, including revenues and expenses, with a comparison to the prior year. For more detail
see the Statement of Activities on page 16.
Ir
Governmental Activities
Business -type
Activities
Total
2005-06
2004-05
2005-06
2004-05
2005-06
2004-05
Assets:
Current and other assets
$ 15,947,959
$ 13,843,039
$ 49,352,419
$ 42,131,120
$ 65,300,378
$ 55,974,159
Capital assets
26.946.411
18.902.962
34.437.667
29.339.640
61.384.078
48.242.602
Total assets
42.894.370
32.746.001
83.790.086
71.470.760
126.684.456
104.216.761
Liabilities:
Long-term liabilities
11,545,996
7,140,195
17,145,908
17,257,343
28,691,904
24,397,538
outstanding
Other liabilities
943.436
563.131
3.600.846
1.143.760
4.544.282
1.706.891
Total liabilities
12.489.432
7.703.326
20.746.754
18.401.103
33.236.186
26.104.429
Net assets:
Invested in capital assets,
15,776,569
12,118,268
15,864,458
12,082,297
31,641,027
24,200,565
Net of related debt
Restricted
5,935,326
4,799,779
33,731,859
27,573,439
39,667,185
32,373,218
Unrestricted
8.693.043
8.124.628
13.447.015
13.413.921
22.140.058
21.538.549
Total net assets
S 30.404.938
S 25.042.675
S 63.043.332
S 53.069.657
S 93.448.270
S 78.112.332
The City's total net assets at September 30, 2006 was $93,448,270. Of the City's total net assets
$31,641,027 (34%) 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, $39,667,185 (42%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of the City's
total net assets, $22,140,058 (24%) is unrestricted. These assets may be used at the City's
discretion in meeting its ongoing obligations to citizens and creditors.
The City's net assets increased by $15,335,938 during the current fiscal year. Almost half of this
increase was due to a recreation land purchase, and the construction in progress of the Sunburst
and Greater Hills Water Treatment Plants and a reclaimed water plant, which significantly
increased capital assets. Restricted reserves represent the accumulation of impact fee funds for
upcoming and ongoing capital projects. Unrestricted reserves represent increases in investment
cash in governmental funds. The increase is due to actual revenues exceeding anticipated
revenues, which is the result of growth in the City's tax base.
The following is a summary of the City's governmental and business -type activities for fiscal year
2005-06, including revenues and expenses, with a comparison to the prior year. For more detail
see the Statement of Activities on page 16.
Ir
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 23
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
CITY OF CLERMONT'S Changes in Net Assets
Governmental Activities
Business-type
ActivitiesTotal
2005-06
2004-05
2005-06
2004-05
2005-06
2004-05
Revenues:
Program revenues -
Charges for services
$ 3,760,643
$ 2,453,764
$11,548,548
$10,329,231
$ 15,309,191
$ 12,782,995
Operating grants and
523,310
511,853
10,852
138,500
534,162
650,353
contributions
Capital grants and
105,379
1,643,898
6,408,010
6,287,105
6,513,389
7,931,003
contributions
General revenues -
Property Taxes
5,664,705
4,416,962
-
-
5,664,705
4,416,962
Franchise and utility
4,661,929
3,973,884
-
-
4,661,929
3,973,884
taxes
Intergovernmental
3,787,148
2,857,999
-
-
3,787,148
2,857,999
Investment income and
835,156
326,486
1,968,333
824,996
2,803,489
1,151,482
miscellaneous
Gain on sale of
854,233
854,233
capital assets
Total revenues
19,338270
17,039,079
19,935,743
17,579,832
39274,013
34,618,911
Expenses:
General government
3,232,213
2,617,095
-
-
3,232,213
2,617,095
Public safety
7,109,231
5,772,697
-
-
7,109,231
5,772,697
Physical environment
382,089
278,063
-
-
382,089
278,063
Transportation
1,321,429
1,172,233
-
-
1,321,429
1,172,233
Economic environment
180,968
12,778
-
-
180,968
12,778
Human services
77,055
148,994
-
-
77,055
148,994
Culture and recreation
1,851,227
1,816,477
-
-
1,851,227
1,816,477
Interest on long-term
285,405
254,725
-
-
285,405
254,725
debt
Water
-
-
3,426,967
3,015,322
3,426,967
3,015,322
Sewer
-
-
4,023,962
3,572,120
4,023,962
3,572,120
Sanitation
-
-
1,730,987
1,816,868
1,730,987
1,816,868
Stormwater
316,542
286,597
316,542
286,597
Total expenses
14,439,617
12,073,062
9,498,458
8,690,907
23,938,075
20,763,969
Increase(Decrease)in
Net Assets Before
4,898,653
4,966,017
10,437,285
8,888,925
15,335,938
13,854,942
Transfers
Transfers
463,610
377,416
(463,610)
(377,416)
Increase in Net Assets
5,362,263
5,343,433
9,973,675
8,511,509
15,335,938
13,854,942
NetAssets- Beginning
25,042,675
19,699242
53,069,657
44,558,148
78,112,332
64257,390
Net Assets - Ending
30.404.938
$ 25.042675
$ 63.043.332
$ 53 069.657
$ 93 448270
$ 78 112 332
7
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MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Governmental activities - Governmental activities increased the City of Clermont's net assets by
$5,362,263. Key elements of this increase are as follows:
• Property tax revenue increased by $1,247,743 (28.3%) during the year. Franchise fee
revenue increased $357,094 (26.3%) and utility tax revenue increased $330,951 (12.7%).
These increases are the result of growth and not a change in the City's tax rate structure.
• Charges for services increased primarily due to an increase in collections of recreation,
police and fire impact fees. This is due to a new fee structure adopted January 1, 2006.
• Increases in expenses closely paralleled inflation and growth in the demand for services.
The most significant increase can be observed in the public safety category. The majority
of this increase is additional personnel in both the police and fire departments.
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.
Expenses and Program Revenues - Governmental Activities
General government Public safety Transportation/Public Culture and recreation Physical environment Interest on long-term
works and other debt
D Expenses ■Program revenues
8
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MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
The following pie chart illustrates the composition of governmental activities revenue and its
percent in relation to total governmental activities revenues.
Revenues by Source - Governmental Activities
■ Intergovemment ■ Charges for services ❑ Operatng grants and contributions
❑ Capital grants and contributons ■ Investment income & miscellaneous ❑ Othertaxes
■ Property taxes
Property tz
29%
Intergovernment
)as for services
19%
grants and
butions
.k
24% Capital grants and
Investment income& contributions
miscellaneous 1%
4%
Business -type activities - Business -type activities increased the City of Clermont's net assets by
$9,973,675. Key elements of this increase are as follows:
• Charges for services for business -type activities increased by $1,219,317 (11.8%), primarily
due to increase in demand.
Capital contributions totaled $6,408,010. These contributions are water and sewer impact
fees paid by developers. Although this total was only a slight increase of $120,905 from the
previous fiscal year, this amount contributes to the majority of the increase in net assets.
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 the Sunburst Lane and Greater Hills Water
Treatment Plants and a Water Reclamation Plant.
• Sanitation expenses decreased due to the renegotiation of the contract to provide collection
for the eastern portion of the city at a lower price and lower landfill charges.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 26
MANAGEMENT'S DISCUSSION AND ANALYSIS — CONTINUED
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.
Expenses and Program Revenues - Business -Type Activities
Water Sewer Sanitation Slormwaler
❑Expenses ■Program Revenue
The following pie chart illustrates the composition of business -type activities revenue and its
percent in relation to total business -type activities revenues.
Revenues by Source - Business -type Activities
■Investment income & miscellaneous ■Operating grants and contributions
❑Charges for Services ❑Capital Grants and Contributions
Capital Grants a
Contributions
32
Investment income &
sous
10
3ng grants and
nlributions
0%
s for Services
58
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 27
MANAGEMENT'S DISCUSSION AND ANALYSIS — CONTINUED
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, unreserved 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, 2006, the City of Clermont's governmental funds reported combined
ending fund balances of $14,845,823, an increase of $1,852,362 in comparison with the prior
year. Of the governmental funds combined ending fund balances, $13,423,888 (90%)
represents unreserved fund balance, which is available for spending at the City's discretion.
The remainder of fund balance is reserved to indicate that it is not available for spending
because it has already been committed for debt service, 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, 2006,
the fund balance in the General Fund was $5,090,705, a decrease of $865,423 in comparison
with the prior year. Of the total fund balance in the General Fund, $4,857,413 (95%) was
unreserved fund balance. As a measure of the general fund's liquidity, it may be useful to
compare both unreserved fund balance and total fund balance to total fund expenditures.
Unreserved fund balance represents 23% of total general fund expenditures, while total fund
balance represents 24% of that same amount. This decrease to fund balance is primarily
because of a recreation land purchase.
The City also has an Infrastructure Special Revenue Fund that is considered a major fund under
criteria set forth by GASB Statement #34. This fund is used to account for the City's share of
the Local Government Infrastructure Surtax. The surtax, which represents a countywide one -
cent increase in the state sales tax, was authorized for an additional fifteen years by the voters
of Lake County in November, 2001. The surtax may only be used for infrastructure projects or
public safety equipment with a useful life in excess of five years or on debt issued to finance the
above. During fiscal year 2005-06, the fund balance of the infrastructure fund increased by
$1,582,238. This increase is due to intergovernmental revenue being higher than anticipated.
There were only minimal expenditures from this fund since the City is accumulating money for
the future construction of a community center.
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, 2006,
the fund balance was $288,375, an increase of $49,129 over the prior year. Currently, phase I I
of the streetscape improvements in this district is being engineered.
The remainder of the increase to the governmental fund balance was from the non -major
government funds. Recreation, police and fire impact fee fund balances combined increased a
total of $1,156,744. The capital projects fund balance decreased by $127,068. These funds
are to be used for the construction of a new community center.
11
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MANAGEMENT'S DISCUSSION AND ANALYSIS — CONTINUED
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.
As of September 30, 2006, the City of Clermont's proprietary funds reported total net assets of
$63,043,332, an increase of $9,973,675 in comparison with the prior year. Of the proprietary
funds total net assets, $13,329,866 (21 %) represents unrestricted net assets. Restricted assets
of $33,731,859 (54%) are reserved for capital improvements.
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, 2006, the City of Clermont's water fund reported total net assets of $20,679,117, an
increase of $3,341,173 (19%) in comparison with the prior year. This increase is primarily due
to servicing an expanded customer base. The residential customer base has increased from
14,284 customers in September 2005 to 15,733 as of September 2006. Approximately 53% of
the increase in net assets was operating income. The remainder was from impact fee
collections that are accumulating for large capital projects that will expand our current water
system.
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, 2006, the
City of Clermont's sewer fund reported total net assets of $37,280,370, an increase of
$5,670,295 in comparison with the prior year. This increase is primarily due to impact fee
collections. Much of the money collected for impact fees is accumulating for large capital
projects that will expand our current sewer system. The remainder of the increase is due to
servicing an expanded customer base. The residential customer base has increased from
10,176 customers in September 2005 to 11,125 in September 2006.
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, 2006, the City of Clermont's sanitation fund
reported total net assets of $1,852,130, an increase of $578,731 in comparison with the prior
year. This was primarily due to operating income.
General Fund Budgetary Highlights
During the year there was a $9,103,059 increase in appropriations between the original and
final amended budget. Following are the main components of the increase:
• $298,126 increase to Administrative Services for lightning damaged computer equipment
replacement and additional personnel and equipment in the Information Technology
Division. An offsetting insurance reimbursement was received for the damaged equipment
and revenue was also amended accordingly.
• $465,511 increase to the Fire Department to purchase an Aerial Ladder fire truck.
12
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MANAGEMENT'S DISCUSSION AND ANALYSIS -CONTINUED
• $8,303,482 increase to the Public Services Department for the purchase of recreation
land. A note payable was issued for $5,250,000. Offsetting grant revenue of
$2,500,000 from Lake County was also amended in the 2005-06 fiscal year, but was not
received. The City has an interlocal agreement to receive the grant in April 2007 when
Lake County has issued revenue bonds.
Actual revenues (excluding the $2,500,000 grant mentioned above) were $1,066,271 more than
budgeted revenue and actual expenditures were $1,128,700 less than budgeted expenditures.
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 44 - 45 of this report.
CITY OF CLERMONT'S Capital Assets
(net of depreciation)
The City of Clermont's investment in capital assets for its governmental and business -type
activities as of September 30, 2006, amounts to $61,384,078 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, improvements/infrastructure, and
machinery and equipment. The total increase in the City's investment in capital assets for the
current fiscal year was $13,141,476 (27%). Major capital asset events during the current fiscal
year included the following:
• Recreation land for a passive park was acquired for $8,303,482.
• Property adjacent to Fire Station #1 was purchased for $158,009.
• Sewer lift station control panel rehabilitation was completed for $309,468.
• Aerial ladder fire truck $466,023.
• New/replacement vehicles totaling $322,655.
• Two (2) new local garbage trucks for $373,722.
13
Governmental Activities
Business-typeActiyities
Total
2005-06
2004-05
2005-06
2004-05
2005-06
2004-05
Land
$12,941,498
$ 4,380,524
$ 1,464,129
$ 1,464,129
$14,405,627
$ 5,844,653
Buildings
5,219,249
5,780,569
547
1,739
5,219,796
5,782,308
Improvements/
4,971,506
5,857,817
26,120,246
26,663,943
31,091,752
32,521,760
Infrastructure
Machinery and Equipment
3,401,866
2,876,402
982,642
640,618
4,384,508
3,517,020
Construction in progress
412,292
7,650
5,870,103
569,211
6,282,395
576,861
The City of Clermont's investment in capital assets for its governmental and business -type
activities as of September 30, 2006, amounts to $61,384,078 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, improvements/infrastructure, and
machinery and equipment. The total increase in the City's investment in capital assets for the
current fiscal year was $13,141,476 (27%). Major capital asset events during the current fiscal
year included the following:
• Recreation land for a passive park was acquired for $8,303,482.
• Property adjacent to Fire Station #1 was purchased for $158,009.
• Sewer lift station control panel rehabilitation was completed for $309,468.
• Aerial ladder fire truck $466,023.
• New/replacement vehicles totaling $322,655.
• Two (2) new local garbage trucks for $373,722.
13
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MANAGEMENT'S DISCUSSION AND ANALYSIS — CONTINUED
• Construction in progress includes construction of Fire Station No. 1 Administration
Building, the expansion of Fire Station No. 2, community center construction, downtown
streetscape phase II, Bloxam Avenue drainage improvements, Sunburst Lane and
Greater Hills water treatment plant expansions, and a sewer reclaimed water plant.
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 46 - 48 of this report.
CITY OF CLERMONT'S Outstanding Debt
Governmental Activities Business-typeActivitiesTotal
2005-06 2004-05 2005-06 2004-05 2005-06 2004-05
Revenue bonds payable $ 5,775,000 $ 6,180,000 $ 17,685,000 $ 17,835,000 $ 23,460,000 $ 24,015,000
Notes payable 5.391.589 604.694 5.391.589 604.694
Total $ 11.166.589 $ 6.784.694 $ 17.685.000 $ 17.835.000 $ 28.851.589 $ 24.619.694
At the end of the current fiscal year, the City of Clermont had total debt outstanding of
$28,851,589. This debt includes revenue bonds payable and notes payable. The City of
Clermont issued a new note payable during fiscal year 2005-2006 for the purchase of recreation
land.
Economic Factors and Next Year's Budgets and Rates
• The annual unemployment rate for Lake County in 2006 was 3.1%, which is a decrease
from a rate of 3.6% in 2005. This compares favorably to the state's average of 3.2% and
the national average rate of 4.5%.
• The taxable value of commercial and residential property increased 30.9% from fiscal
year 2005-06 to fiscal year 2006-07.
• Population increased 9.8% from 20,017 in 2005 to 21,986 in 2006.
As of September 30, 2006, the General Fund unreserved fund balance was $4,857,413. The
City appropriated $23,115 of this amount for spending in the 2006-07 fiscal year budget. No tax
increases were proposed for the general fund for the 2006-07 fiscal year budget.
No utility rate adjustments were proposed for the 2006-07 fiscal year with the exception of the
sewer rate structure. The sewer rates increased 2.74% on October 1, 2006 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.
14
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :22 PM Page 31
GOVERNMENT -WIDE FINANCIAL STATEMENTS
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 32
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :22 PM Page 33
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET ASSETS
September 30, 2006
Primary Government
Governmental Business -type
Activities Activites Total
Assets:
33,731,859 38,478,542
288,375
- 288,375
Cash and cash equivalents
$ 2,221,093
$ 1,101,224
$ 3,322,317
Investments
13,216,278
12,167,762
25,384,040
Receivables, net
71,026
1,015,766
1,086,792
Inventories
23,821
27,169
50,990
Due from other governments
323,419
-
323,419
Internal balances
(117,149)
117,149
-
Prepaid costs
209,471
96,496
305,967
Restricted assets:
Cash and cash equivalents
-
2,647,434
2,647,434
Investments
-
31,729,346
31,729,346
Interest receivable
-
126,712
126,712
Bond issuance costs
-
323,361
323,361
Capital assets not being depreciated
13,353,790
7,334,232
20,688,022
Capital assets being depreciated, net of
-
accumulated depreciation
13,592,621
27,103,435
40,696,056
Total assets
42,894,370
83,790,086
126,684,456
Liabilities:
Accounts payable and other current liabilities
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
Net Assets:
Invested in capital assets, net of related debt
Restricted for:
Capital improvements
Community redevelopment
Debt service
Perpetual care-nonexpendable
Unrestricted
Total Net Assets
943,436 3,600,846 4,544,282
448,448 230,000 678,448
11,097,548 16,915,908 28,013,456
12,489,432 20,746,754 33,236,186
15,776,569 15,864,458 31,641,027
4,746,683
33,731,859 38,478,542
288,375
- 288,375
352,779
352,779
547,489
- 547,489
8,693,043
13,447,015 22,140,058
$ 30,404,938 $ 63,043,332 $ 93,448,270
The accompanying Notes to Financial Statements are an integral part of these statements.
15
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :22 PM Page 34
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24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :23 PM Page 35
FUND FINANCIAL STATEMENTS
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 36
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 37
CITY OF CLERMONT, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2006
Community
Infrastructure Redevelopment
Special Special
General Revenue Revenue
Other Total
Governmental Governmental
Funds Funds
Assets:
Accounts payable $ 303,681 $ - $ -
Cash and cash equivalents
$ 429,480
$ 232,185 $
128,581 $ 1,413,709 $ 2,203,955
Investments
4,776,228
3,448,748
159,794 4,298,881 12,683,651
Receivables, net
71,026
-
- - 71,026
Inventories, at cost
23,821
-
- - 23,821
Due from other governments
184,560
138,859
- - 323,419
Prepaid costs
209,471
352,779
209,471
Total assets
$ 5,694,586
$ 3,819,792 $
288,375 r-5,712,590 $ 15,515,343
Liabilities and Fund Balances:
Accounts payable $ 303,681 $ - $ -
$ 65,639
$ 369,320
Accrued liabilities 300,200 - -
-
300,200
Total liabilities 603,881 - -
65,639
669,520
Fund balances:
Reserved:
Inventories and prepaid costs 233,292 - -
-
233,292
Community redevelopment - - 288,375
-
288,375
Debt service - - -
352,779
352,779
Perpetual care - - -
547,489
547,489
Unreserved, reported in:
General fund 4,857,413 - -
-
4,857,413
Special revenue funds - 3,819,792 -
3,947,001
7,766,793
Capital projects fund
799,682
799,682
Total fund balances 5,090,705 3,819,792 288,375
5,646,951
14,845,823
Total liabilities and fund
balances $ 5,694,586 $ 3,819,792 $ 288,375
$ 5,712,590
Amounts reported for governmental activities in the statement of net
assets are different because:
Capital assets used in governmental activities are not financial resources
and, therefore are not reported in the funds
26,946,411
Internal service funds are used by management to charge the costs
of medical insurance to individual funds. The assets and liabilities
of the internal service funds are included in governmental activities
in the statement of net assets.
279,438
Accrued interest payable is not due in the current period and therefore
is not reported in the funds
(120,738)
Long-term liabilities are not due and payable in the current
period and therefore are not reported in the funds
(11,545,996)
Net assets of governmental activities
$ 30,404,938
The accompanying Notes to Financial Statements are an integral part of these statements.
17
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 38
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES -GOVERNMENTAL FUNDS
For The Year Ended September 30, 2006
Expenditures:
Community
Current:
Infrastructure
Redevelopment
Other
Total
General government
2,885,755
Special
Special
Governmental
Governmental
Public safety
General
Revenue
Revenue
Funds
Funds
Revenues:
371,044
-
-
-
371,044
Taxes
$ 10,150,274
$ -
$ 176,360
$ -
$ 10,326,634
Licenses and permits
455,681
-
-
-
455,681
Intergovernmental revenues
2,276,146
1,934,455
-
-
4,210,601
Charges for services
406,835
-
-
-
406,835
Fines and forfeitures
226,472
-
-
-
226,472
Impact fees/special assessments
-
-
-
2,444,585
2,444,585
Investment income
391,053
106,047
15,601
225,062
737,763
Miscellaneous
451,347
-
-
53,619
504,966
Total revenues
14,357,808
2,040,502
191,961
2,723,266
19,313,537
Expenditures:
Current:
General government
2,885,755
-
-
-
2,885,755
Public safety
7,454,309
-
-
319,871
7,774,180
Physical environment
371,044
-
-
-
371,044
Transportation
1,012,955
1,891
-
-
1,014,846
Economic environment
38,136
-
142,832
-
180,968
Human services
75,095
-
-
-
75,095
Culture and recreaton
9,591,116
-
-
-
9,591,116
Debt service:
Principal retlrement
10,543
-
-
857,562
868,105
Interest and fiscal charges
403
-
-
243,920
244,323
Capital outlay:
Culture and recreation
-
-
-
169,353
169,353
Total expenditures
21,439,356
1,891
142,832
1,590,706
23,174,785
Excess (Deficiency) of
Revenues Over Expenditures
(7,081,548)
2,038,611
49,129
1,132,560
(3,861,248)
Other Financing Sources (Uses)
Note payable issued
5,250,000
-
-
-
5,250,000
Transfers in
1,042,187
-
-
633,851
1,676,038
Transfers out
(76,062)
(456,373)
-
(679,993)
(1,212,428)
Net other financing sources
(uses)
6,216,125
(456,373)
-
(46,142)
5,713,610
Net Change in Fund Balances
(865,423)
1,582,238
49,129
1,086,418
1,852,362
Fund Balances - Beginning
5,956,128
2,237,554
239,246
4,560,533
12,993,461
Fund Balances - Ending
$ 5,090,705
$ 3,819,792 $
288,375
$ 5,646,951
$ 14,845,823
The accompanying Notes to Financial Statements are an integral part of these statements.
18
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 39
CITY OF CLERMONT, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended September 30, 2006
Amounts reported for the governmental activities in the statement of
activities (page 16) are different because:
Net change in fund balances - total governmental funds (page 18) $ 1,852,362
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.
This is the amount by which capital outlays exceeded depreciation
in the current period. 8,071,990
The net effect of sales of capital assets is to decrease net assets. (28,542)
The issuance of long-term debt 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. This
amount is the net effect of these differences in the treatment of
long-term debt and related items. (4,381,894)
Internal service funds are used by management to charge the cost of
medical insurance to individual funds. Net revenue of certain activities
of internal service funds is reported with governmental activities. (86,665)
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. (64,988)
Change in net assets of governmental activities (page 16) $ 5,362,263
The accompanying Notes to Financial Statements are an integral part of these statements.
19
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 40
CITY OF CLERMONT, FLORIDA
For The Year Ended September 30, 2006
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government:
City council
City clerk
City manager
Administrative services
Legal services
Planning & zoning
Engineering
Other general government
Public safety:
Law enforcement
Fire control
Physical environment:
Public works
Economic environment:
Economic development
Cooper Memorial Library
Recreation programs
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
26,485
26,485
22,261
Variance With
192,515
192,515
191,641
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 9,598,090
$ 9,598,090
$ 10,150,274
$ 552,184
424,500
424,500
455,681
31,181
2,337,721
4,837,721
2,276,146
(2,561,575)
402,020
402,020
406,835
4,815
73,100
73,100
226,472
153,372
120,400
120,400
391,053
270,653
219,505
335,706
451,347
115,641
13,175,336
15,791,537
14,357,808
(1,433,729)
26,485
26,485
22,261
4,224
192,515
192,515
191,641
874
379,900
379,900
369,335
10,565
772,766
1,070,892
1,070,543
349
105,570
110,935
110,027
908
627,460
627,460
570,792
56,668
438,270
438,270
376,854
61,416
168,900
192,821
174,302
18,519
2,711,866
3,039,278
2,885,755
153,523
4,191,465
4,191,465
3,952,443
239,022
3,164,965
3,630,476
3,501,866
128,610
7,356,430
7,821,941
7,454,309
367,632
3,160,280
11,463,762
10,875,866
587,896
31,925
37,761
37,318
443
-
818
818
-
31,925
38,579
38,136
443
197,175
197,175
174,344
22,831
7,154
7,154
10,543
(3,389)
167
167
403
(236)
13,464,997
22,568,056
21,439,356
1,128,700
The accompanying Notes to Financial Statements are an integral part of these statements.
20
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 41
CITY OF CLERMONT, FLORIDA
For The Year Ended September 30, 2006
Variance With
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Excess (Deficiency) of Revenues
Over Expenditures (289,661) (6,776,519) (7,081,548) (305,029)
Other Financing Sources (Uses)
Note payable issued
- 5,250,000
5,250,000 -
Transfers in
429,600 983,082
1,042,187 59,105
Transfers out
(139,939) (139,939)
(76,062) 63,877
Net other financing sources (uses)
289,661 6,093,143
6,216,125 122,982
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
- (683,376) (865,423) (182,047)
5,956,128 5,956,128 5,956,128 -
$ 5,956,128 $ 5,272,752 $ 5,090,705 $ (182,047)
The accompanying Notes to Financial Statements are an integral part of these statements.
21
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 42
CITY OF CLERMONT, FLORIDA
INFRASTRUCTURE SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended September 30, 2006
Variance With
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental revenues
$ 1,728,000
$ 1,728,000
$ 1,934,455
$ 206,455
Investment income
30,000
30,000
106,047
76,047
Total revenues
1,758,000
1,758,000
2,040,502
282,502
Expenditures:
Transportation:
Roads & streets
30,000
30,000
1,891
28,109
Culture and recreation:
Parks & recreation
50,000
50,000
-
50,000
Total expenditures
80,000
80,000
1,891
78,109
Excess (Deficiency) of
Revenues Over Expenditures
1,678,000
1,678,000
2,038,611
360,611
Other Financing Sources (Uses)
Transfers out
(3,659,919)
(3,659,919)
(456,373)
3,203,546
Net other financing sources (uses)
(3,659,919)
(3,659,919)
(456,373)
3,203,546
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
(1,981,919) (1,981,919) 1,582,238 3,564,157
2,237,554 2,237,554 2,237,554 -
$ 255,635 $ 255,635 $ 3,819,792 $ 3,564,157
The accompanying Notes to Financial Statements are an integral part of these statements.
22
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 43
CITY OF CLERMONT, FLORIDA
COMMUNITY REDEVELOPMENT SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended September 30, 2006
Excess (Deficiency) of
Revenues Over Expenditures (79,677) (79,677) 49,129 128,806
Other Financing Sources (Uses)
Transfers in 63,285 63,285 - (63,285)
Net other financing sources (uses) 63,285 63,285 - (63,285)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
(16,392) (16,392) 49,129 65,521
239,246 239,246 239,246 -
$ 222,854 $ 222,854 $ 288,375 $ 65,521
The accompanying Notes to Financial Statements are an integral part of these statements.
23
Variance With
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues:
Taxes
$ 114,198 $
114,198
$ 176,360
$ 62,162
Investment income
6,300
6,300
15,601
9,301
Total revenues
120,498
120,498
191,961
71,463
Expenditures:
Economic development
200,175
200,175
142,832
57,343
Total expenditures
200,175
200,175
142,832
57,343
Excess (Deficiency) of
Revenues Over Expenditures (79,677) (79,677) 49,129 128,806
Other Financing Sources (Uses)
Transfers in 63,285 63,285 - (63,285)
Net other financing sources (uses) 63,285 63,285 - (63,285)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
(16,392) (16,392) 49,129 65,521
239,246 239,246 239,246 -
$ 222,854 $ 222,854 $ 288,375 $ 65,521
The accompanying Notes to Financial Statements are an integral part of these statements.
23
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :23 PM Page 44
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 50
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 51
CITY OF CLERMONT, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2006
Assets:
Cash
Investments (at fair value):
Equity Funds
Bond Funds
Total Assets:
Liabilities:
Accounts payable
Net Assets:
Held in trust for pension benefits
Total Employee
Pension Funds
$ 167,478
5,721,534
3,681,152
9,570,164
$ 9,570,164
The accompanying Notes to Financial Statements are an integral part of these statements.
29
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 52
CITY OF CLERMONT, FLORIDA
For The Year Ended September 30, 2006
Investment income
Net increase in fair value of investments 625,148
Less investment expense -
Net investment income 625,148
Total additions 1,654,085
Deductions:
Ben efits/d istribution s 546,600
Administrative expenses 52,491
Total deductions 599,091
Change in Net Assets 1,054,994
Net Assets - Beginning
Net Assets - End
8,515,170
$ 9,570,164
The accompanying Notes to Financial Statements are an integral part of these statements.
30
Total Employee
Pension Funds
Additions:
Contributions:
Employer
$ 640,621
Plan members
67,175
State
321,141
Total contributions
1,028,937
Investment income
Net increase in fair value of investments 625,148
Less investment expense -
Net investment income 625,148
Total additions 1,654,085
Deductions:
Ben efits/d istribution s 546,600
Administrative expenses 52,491
Total deductions 599,091
Change in Net Assets 1,054,994
Net Assets - Beginning
Net Assets - End
8,515,170
$ 9,570,164
The accompanying Notes to Financial Statements are an integral part of these statements.
30
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :23 PM Page 53
NOTES TO FINANCIAL STATEMENTS
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 54
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 55
CITY OF CLERMONT, FLORIDA
September 30, 2006
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 111, Florida Statutes.
Notification to affected taxing agency was done in compliance with Chapter 163.346, Part 111,
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.
31
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 56
CITY OF CLERMONT, FLORIDA
September 30, 2006
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 are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Separate 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
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 57
CITY OF CLERMONT, FLORIDA
September 30, 2006
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:
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.
The Infrastructure Special Revenue 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.
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.
Special Revenue Funds account for specific revenue sources that are restricted by
law or administrative action to expenditures for specific purposes.
Debt Service Fund is used to account for the accumulation of resources for, and the
payment of principal and interest on certain long-term debt.
Capital Projects Fund account for financial resources segregated for the acquisition
or construction of major capital facilities.
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
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 58
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Mamor Pro ri�etaU 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.
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.
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
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 59
CITY OF CLERMONT, FLORIDA
September 30, 2006
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
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 60
CITY OF CLERMONT, FLORIDA
September 30, 2006
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 fund balance reserve account 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 uncollectibles. 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.
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 bank accounts and their
use is limited by applicable bond covenants. Assets so designated are identified
as restricted assets on the balance sheet.
36
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 61
CITY OF CLERMONT, FLORIDA
September 30, 2006
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, 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, in accordance
with Chapter 274.02, Florida Statutes, as assets with an initial, individual cost of
$750 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.
Infrastructure acquired prior to October 1, 2003 has not been recorded for
governmental activities. GASB Statement No. 34 requires the reporting and
deprecation of new infrastructure expenditures effective with the beginning of the
implementation year (October 1, 2003).
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.
Buildings
Years
10-50
Improvements
15-50
Infrastructure
30-50
Equipment
3-15
37
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 62
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity- (Continued)
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 are generally liquidated by the
general fund.
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
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally
restricted by outside parties for use for a specific purpose. Designations of fund
balance represent tentative management plans that are subject to change.
101
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :23 PM Page 63
CITY OF CLERMONT, FLORIDA
September 30, 2006
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 $8,071,990 difference are as follows:
Capital outlay $10,323,178
Depreciation expense (2251,188)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities R R m1 cacan
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 $(4,385,448) difference are as follows:
Debt issued or incurred
Loan proceeds $(5,250,000)
Principal repayment 868,105
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net assets of
governmental activitiesra�3R� R
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
Accrued interest payable
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities
39
$(23,906)
(41.082)
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 64
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 3 - Stewardship, Compliance, and Accountability:
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. 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.
Q7
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 65
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 4 - Cash and Investments:
At year-end, the carrying amount of the City's deposits was $31,495 and the bank balance
was $284,565. Fiduciary fund cash of $167,478 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 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 is stated at fair value as provided by the Florida
Municipal Pension Fund.
41
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 66
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 4 - Cash and Investments (Continued):
Investments - (Continued)
Most of the City's investments are invested in the SBA, an investment pool administered by
the State of Florida.
Investments held in the State Board Administration Fund (SBA) consist of short-term
federal agency obligations, treasury bills, repurchase agreements and commercial paper.
The SBA is not a registrant with the Securities and Exchange Commission (SEC); however,
the SBA has adopted operating procedures consistent with the requirements for a 2a-7 like
pool and the fair value of the position in the pool is equal to the fair value of the pool
shares. Such investments are stated at amortized cost in the accompanying financial
statements. Investment income is recognized as earned and is allocated to the
participating funds based on their equity participation.
Investments made by the City of Clermont at September 30, 2006 are summarized below.
Defined benefit pension plan investments, other
than $5,721,534
in mutual funds
investing in equity securities, are
included below.
In accordance
with GASB 31,
investments are reported at fair value.
Weighted
Investment Tvne
Fair Value
Credit Rating
Average Maturity
(Years)
State Board of Administration
$35,669,765
Unrated
< 90 days
Federal Agency Bond
13,975,663
AAA
0.580
FHLMC Disc. Note
7,467,960
A-1+
0.562
Repurchase Agreements
5,938,255
Unrated
<90 days
Pension Plan Investments:
FMIVT Broad Market High
Quality Bond Portfolio
3,681,152
,P.RR7�77A.ri
AA / V4
5.93
The City's investment policy limits credit risk by restricting authorized investments to
those described above.
42
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 67
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 4 - Cash and Investments (Continued):
Investments - (Continued)
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, 2006, 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, 2006,
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.
The City's investment policy requires diversification, but does not specify limits on
types of investments.
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.
43
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 68
CITY OF • FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2006
Note 5 - Receivables:
Receivables as of year end for the City's individual major funds and nonmajor funds, including
the applicable allowances for uncollectible accounts, are as follows:
Note 6 - Capital Assets:
Water Sewer Sanitation Nonmajor
Euad Euad Euad Funds
$412,457 $348,246 $197,181
39,838 2,309
$62,866
Capital asset activity for the year ended September 30, 2006 was as follows:
Beginning
Balance Increases Decreases
Govemmental activities:
Capital assets, not being
depreciated:
Land
Construction in progress
Total capital assets, not being
depreciated
Capital assets, being depreciated:
Buildings
Improvements/infrastructure
Machinery and equipment
Total capital assets, being
depreciated
Less accumulated depreciation for
$ 4,380,524 $ 8,560,974
7,650 404,842
8,898,262 1,748
11,282,260 15,790
5465473 1, 340025
Total
$1,021,960
48,057
64,257
Ending
Balance
- $ 12,941,498
412292
•00
,010
- 11,298,050
0I' 6723888
Buildings (3,117,693) (563,068) (3,680,761)
Improvements/infrastructure (5,424,443) (902,101) (6,326,544)
Machinery and equipment 12 589,071) (786,019) 53,0$8 (3 322,022)
Total accumulated depreciation (11.131,207) 12251,188) 53,0$8 (13.329,327)
Total capital assets, being
depreciated, net
Governmental activities capital
assets, net
ME
General
Fund
Receivables:
Accounts
$ 1,210
Taxes
48,057
Other
22,110
Less allowance for
uncollectible accounts
(351)
Note 6 - Capital Assets:
Water Sewer Sanitation Nonmajor
Euad Euad Euad Funds
$412,457 $348,246 $197,181
39,838 2,309
$62,866
Capital asset activity for the year ended September 30, 2006 was as follows:
Beginning
Balance Increases Decreases
Govemmental activities:
Capital assets, not being
depreciated:
Land
Construction in progress
Total capital assets, not being
depreciated
Capital assets, being depreciated:
Buildings
Improvements/infrastructure
Machinery and equipment
Total capital assets, being
depreciated
Less accumulated depreciation for
$ 4,380,524 $ 8,560,974
7,650 404,842
8,898,262 1,748
11,282,260 15,790
5465473 1, 340025
Total
$1,021,960
48,057
64,257
Ending
Balance
- $ 12,941,498
412292
•00
,010
- 11,298,050
0I' 6723888
Buildings (3,117,693) (563,068) (3,680,761)
Improvements/infrastructure (5,424,443) (902,101) (6,326,544)
Machinery and equipment 12 589,071) (786,019) 53,0$8 (3 322,022)
Total accumulated depreciation (11.131,207) 12251,188) 53,0$8 (13.329,327)
Total capital assets, being
depreciated, net
Governmental activities capital
assets, net
ME
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 69
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 6 - Capital Assets (Continued):
Beginning Ending
Balance Increases Decreases Balance
Business -type activities:
Capital assets, not being
depreciated:
Land $ 1,464,129 $ - $ $ 1,464,129
Construction in progress 569,211 5,300,892 5,870,103
Total capital assets, not being
depreciated 2,033,340 5,300,892 7,334,232
Capital assets, being depreciated:
Buildings
41,324 -
41,324
Improvements
36,257,236 381,451
36,638,687
Machinery and equipment
2,383,355 527,072
2,910,427
Total capital assets, being
depreciated
38,681,915 908,523
39,590,438
Less accumulated depreciation for:
Buildings
(39,585) (1,192)
(40,777)
Improvements
(9,593,293) (925,148)
(10,518,441)
Machinery and equipment
(1 742,737) (185,048)
(1 927,785)
Total accumulated depreciation
111.375,615) (1 111388
(12.487,003)
Total capital assets, being
depreciated, net
Business -type activities capital
assets, net
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government
Public safety
Physical environment/transportation
Culture and recreation
Total depreciation expense - governmental activities
Business -type activities:
Water
Sewer
Sanitation
Stormwater
Total depreciation expense - business -type activities
45
$ 370,764
603,879
72,711
64,034
111 �RR
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 70
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 7 - Long -Tenn Debt:
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
original amount of revenue bonds issued in prior years is described below. Revenue bonds
outstanding at year end are as follows:
Balance
Interest Rates Original September 30,
Governmental Activities and Dates Maturity Amount 2006
Public Improvement
Revenue Bonds,
Series 2002
Business -Tyne Activities
Water and Sewer Revenue
and Refunding Bonds,
Series 2000
1.75-4.6% 12/01/2003
to
(6/1 & 12/1) 12/01/2017 R F,caaS nnn
4.4-5.25% 12/01/2004
to
(6/1 & 12/1) 12/01/2030
Governmental Activities
Principal Interest
2007
$ 415,000
$ 228,338
$ 230,000
$ 915,802
2008
425,000
216,406
390,000
901,657
2009
440,000
202,806
410,000
883,207
2010
455,000
187,406
430,000
863,781
2011
470,000
170,913
450,000
853,837
2012-2016
2,655,000
555,730
2,585,000
3,795,800
2017-2021
915,000
55,980
3,320,000
3,018,750
2022-2026
-
-
4,295,000
2,215,038
2027-2031
5,575,000
930,413
• ••• • •••
En
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 71
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 7 - Long -Term Debt (Continued):
The City has notes payable for governmental activities only. During 2006, the City entered into
one new note payable agreement. Notes payable outstanding at year end are as follows:
Balance
Governmental Activities Original Amount September 30. 2006
Inland Groves North Note, due to individual in
quarterly interest only payments of $52,500
(4%). Final principal payment due on July 14,
2008. $5,250,000 $5,250,000
Capital Improvement Notes, Series 1999 due to
SunTrust Bank in ten annual installments of
$40,264 (including interest) beginning December
2000. The notes bear an interest rate of 5.742%.
The loan was obtained to purchase a fire truck. 300,000 140,346
Note payable to GMAC in twelve quarterly
installments of $2,440 each, starting July 2003,
including interest at 4.65%, secured by vehicle. 27,500 1,243
Total:5775nn3ca15Rca
Annual requirements to amortize outstanding notes payable for governmental activities as of
September 30, 2006 are as follows:
Year Ending Governmental Activities
September 30 Principal Interest
2007 $ 33,448 $217,134
2008 5,284,055 215,232
2009 36,009 3,220
2010 38,077 1,093
Total:3Q1,5RQ 436 z
47
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 72
CITY OF CLERMONT, FLORIDA
• • ue M. - .
2006September 30,
Note 7 - Long -Tenn Debt (Continued):
Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2006 was as follows:
Beginning
Ralanrp Additions
Ending Due Within
Reductions Ralanrp (ane Year
Governmental activities:
Bond payable -
Revenue bonds
$ 6180000 $ -
$ (405 000) $ 5 775 000 1415000
Notes payable -
Inland Groves Note
- 5,250,000
- 5,250,000 -
Parks Mortgage Note
400,000 -
(400,000) - -
Revenue Note,
Series 1999
170,802
(30,456) 140,346 32,205
Note
33, 899 -
(32,49) 1, 243 1, 943
Total notes
payable
604 694 5250 000
(463 105) 5 391 589 33,448
Compensated absences
355,500 321,862
(797,955 379,407 -
Governmental activity
long-term liabilities
7 140 19 5 571 869
(1 166060 11 545 99 448 44
Business -type activities:
Bonds payable -
Revenue bonds
17,835,000
(150,000) 17,685,000 230,000
Less deferred amount:
Issuance discount
(577,657) -
38,565 (53g 0g2 -
Business -type activity
long-term liabilities
17 957 34. $ -
(111 43) 17 145 90 QQ
M
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 73
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 8 - Advance Refunding:
In prior years, the City defeased its 1972 and 1988 bond issues by placing the proceeds of new
bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not included in
the City's financial statements. On September 30, 2006, $1,870,000 of bonds outstanding are
considered defeased.
Note 9 - Interfund Receivables, Payables and Transfers:
The composition of due to/from other funds at September 30, 2006 is as follows:
Water Fund Sewer Fund masa ��ca
Interfund transfers for the year ended September 30, 2006 consisted of the following:
Recipient Fund Amount Purpose
General Fund $ 25,096 Transfer from Cemetery Fund to defray the cost of
cemetery operation and maintenance.
General Fund 463,610 Transfer from Water Fund to cover non-operating
expenditures.
General Fund 553,481 Transfer from Recreation Impact Fee Fund to
reimburse the General Fund for expenditures
incurred for the purchase of park land.
Debt Service Fund 633,851 Transfer from the General Fund, Infrastructure
Fund and Fire Impact Fee Funds to cover the debt
service payments for the 2002 Public
Improvement Revenue Bonds.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 74
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 10 - 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 of the defined contribution plan were administered by Met
Life.
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.
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.
Publicly available financial reports for each plan, that include detailed actuarial data, can be
obtained from the City's Administrative Services Department.
50
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 75
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 10 - Retirement Plans (Continued):
In 1997 the City adopted GASB Statement No. 25 on pension accounting and reporting. This
Statement requires the disclosure of any investments in any one organization that represents
5% or more of plan net assets. All investments in the police officers' retirement trust fund and
the firefighters' pension fund are invested in the Principal Financial Group's various
investment portfolios. There are no investments that exceed 5% of plan net assets. None of
the plans held securities issued by the employer.
Description of Plans - 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.
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.
Membership in each of the defined benefit pension plans at September 30, 2006 was as
follows:
Membership and Provisions
Members:
Retirees and beneficiaries
currently receiving benefits
Vested terminated employees
Active participating employees
Total
General Police
Employees Officers
Firefighters
13 5
1
- 11
42
3A
aa
13 5a
Za
Funding Policy- The City's actuarially determined contribution rate per the October 1, 2005
actuarial valuations is 0% for general employees, 20.9% for police officers and 16.1% 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.
51
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 76
CITY OF CLERMONT, FLORIDA
• • u .. MMMI
2006September 30,
Note 10 - Retirement Plans (Continued):
Annual Pension Cost and Net Pension Obligation - The City has contributed the Annual
Required Contribution (ARC) each year, since plan inception and has not had, or had need
to report, a Net Pension Obligation (NPO). In accordance with GASB Statement No. 27, the
City calculated the potential for a net pension liability (asset) and reaffirmed that none
existed at September 30, 2006.
State law requires that actuarial valuations of the Police and Fire Plan be performed at least
every three years. An actuarial valuation was performed as of October 1, 2005. The
actuarial and census information contained herein, unless otherwise indicated, reflects the
status of the Plan as of the actuarial valuation date.
Required supplementary information is as follows:
Schedule
of Contributions from the Employer and Other Contributing Entities
General Fm Ion yeess Police Officers Firefighters
Annual
Percentage
Annual
Percentage
Annual
Percentage
Year Ended
Sentember30
Required
Contribution
of ARC
Contributed
Required
Contribution
of ARC
Contributed
Required
Contribution
of ARC
Contributed
2006
$18,323
100%
$291,677
100%
$176,631
100%
2005
7,346
100%
277,060
100%
160,454
100%
2004
5,500
100%
249,332
100%
103,481
100%
2003
8,091
100%
179,838
100%
83,365
100%
2002
5,301
100%
87,526
100%
10,283
100%
2001
10,022
100%
100,216
100%
10,252
100%
2000
9,936
100%
80,737
100%
9,097
100%
1999
5,341
100%
70,318
100%
5,397
100%
52
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 77
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 10 - Retirement Plans (Continued):
Notes to the Required Supplementary Information - The information presented in the
required supplementary schedule was determined as part of the actuarial valuation at
October 1, 2005. Additional information applies as follows:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Actuarial Assumptions:
Investment rate of return
Projected salary increases
(including inflation of 3.5%)
Cost of living adjustment
General
Employees
Aggregate Cost
N/A
N/A
Market Value
7.5%
6.0%
N/A
Police
Officers
Aggregate Cost
N/A
N/A
Market Value
7.5%
5.5%
N/A
Aggregate Cost
N/A
N/A
Market Value
7.5%
5.5%
N/A
As noted above, all of the plans use the aggregate actuarial cost method, which does not
identify or separately amortize unfunded actuarial liabilities. Therefore, presentation of a
schedule of funding progress is not required.
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 2006 was $3,624,985; the City's total payroll for
City employees was $4,739,243.
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.
53
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 78
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 10 - Retirement Plans (Continued):
The actual contribution made by the City for fiscal year 2006 was $362,498.
Note 11 - Post-retirement Benefits:
Retired employees have the option of continuing the same type of health and dental
insurance coverage available to them while they were employed with the City. The cost of
the premiums is paid totally by the retirees.
Note 12 - 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 $40,000 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 $1,000,000.
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.
Claims liabilities, beginning of year
Incurred claims
Payments on claims
Claims liabilities, end of year
Note 13 - Commitments and Contingencies:
$ 161,436 $ 77,293
1,574,318 1,034,594
(1 582,577) (950,451)
R 15:i 177 R 1R1 4:iR
Litigation - The City is engaged in various liability claims incidental to the conduct of its
general government operations at September 30, 2006. 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.
Land Purchase - The city has entered into a contract to purchase two properties totaling
$8,250,000. Pending inspection, closing on these properties will occur on July 14, 2008.
The city hopes to obtain a state grant to help offset some of the cost.
54
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 79
CITY OF CLERMONT, FLORIDA
September 30, 2006
Note 13 - Commitments and Contingencies (Continued):
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.
55
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24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 81
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 83
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Recreation Impact Fees Fund This fund was established to account for recreation
impact fees collected from new developments con-
structed in the City.
Police Impact Fees Fund This fund was established to account for police
impact fees collected from new developments con-
structed in the City.
Fire Impact Fees Fund This fund was established to account for fire impact
fees collected from new developments constructed
in the City.
Debt Service Fund
Debt Service Fund This fund was established to account for the accu-
mulation of resources and payment of bond princi-
pal and interest from governmental resources.
Capital Projects Fund
Capital Projects Fund This fund was established to account for the acqui-
sition of capital assets or construction of major cap-
ital projects not being financed by proprietary funds.
Permanent Fund
Cemetery Perpetual Care Fund This fund is used to account for monies provided by
people buying lots in the City cemetery. The princi-
pal 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 opera-
tion and maintenance.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 84
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2006
Assets:
Cash and cash equivalents $ 232,674 $ 258,910 $ 398,346 $ 889,930
Investments 1,429,536 1,462,085 217,250 3,108,871
Total assets $ 1,662,210 $ 1,720,995 $ 615,596 $ 3,998,801
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ 5,516 $ 4,872 $ 41,412 $ 51,800
Total liabilities 5,516 4,872 41,412 51,800
Fund Balances:
Reserved for debt service - - - -
Reserved for cemetery perpetual care - - - -
Unreserved 1,656,694 1,716,123 574,184 3,947,001
Total fund balances 1,656,694 1,716,123 574,184 3,947,001
Total liabilities and fund balances $ 1,662,210 $ 1,720,995 $ 615,596 $ 3,998,801
K$
Special Revenue
Recreation
Police
Fire
Special
Impact
Impact
Impact
Revenue
Fees
Fees
Fees
Total
Assets:
Cash and cash equivalents $ 232,674 $ 258,910 $ 398,346 $ 889,930
Investments 1,429,536 1,462,085 217,250 3,108,871
Total assets $ 1,662,210 $ 1,720,995 $ 615,596 $ 3,998,801
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ 5,516 $ 4,872 $ 41,412 $ 51,800
Total liabilities 5,516 4,872 41,412 51,800
Fund Balances:
Reserved for debt service - - - -
Reserved for cemetery perpetual care - - - -
Unreserved 1,656,694 1,716,123 574,184 3,947,001
Total fund balances 1,656,694 1,716,123 574,184 3,947,001
Total liabilities and fund balances $ 1,662,210 $ 1,720,995 $ 615,596 $ 3,998,801
K$
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 85
$ - $ 13,839 $ - $ 65,639
- 13,839 - 65,639
352,779 - - 352,779
- - 547,489 547,489
- 799,682 - 4,746,683
352,779 799,682 547,489 5,646,951
$ 352,779 $ 813,521 $ 547,489 $ 5,712,590
57
Permanent
Fund
Total
Cemetery
Nonmajor
Debt
Capital
Perpetual
Governmental
Service
Projects
Care
Funds
$ 352,779
$ 45,399
$ 125,601
$ 1,413,709
-
768,122
421,888
4,298,881
$ 352,779
$ 813,521
$ 547,489
$ 5,712,590
$ - $ 13,839 $ - $ 65,639
- 13,839 - 65,639
352,779 - - 352,779
- - 547,489 547,489
- 799,682 - 4,746,683
352,779 799,682 547,489 5,646,951
$ 352,779 $ 813,521 $ 547,489 $ 5,712,590
57
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 86
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended September 30, 2006
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
621,329 462,317 73,098 1,156,744
1,035,365 1,253,806 501,086 2,790,257
$ 1,656,694 $ 1,716,123 $ 574,184 $ 3,947,001
m
Special Revenue
Recreation
Police
Fire
Special
Impact
Impact
Impact
Revenue
Fees
Fees
Fees
Total
Revenues:
Impactfees/special assessments
$ 1,518,131
$ 523,204
$ 403,250
$ 2,444,585
Investment income
56,679
67,838
24,789
149,306
Miscellaneous
-
-
-
-
Totalrevenues
1,574,810
591,042
428,039
2,593,891
Expenditures:
Current:
Public safety
-
128,725
191,146
319,871
Debt service:
Principal retrement
400,000
-
52,562
452,562
Interest and fiscal charges
-
-
9,817
9,817
Capital outlay:
Culture and recreation
-
-
-
-
Total expenditures
400,000
128,725
253,525
782,250
Excess (Deficiency) of Revenues
Over Expenditures
1,174,810
462,317
174,514
1,811,641
Other Financing Sources (Uses):
Transfers in
-
-
-
-
Transfers out
(553,481)
-
(101,416)
(654,897)
Total other financing sources (uses)
(553,481)
-
(101,416)
(654,897)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
621,329 462,317 73,098 1,156,744
1,035,365 1,253,806 501,086 2,790,257
$ 1,656,694 $ 1,716,123 $ 574,184 $ 3,947,001
m
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 87
59
Permanent
Fund
Total
Cemetery
Nonmajor
Debt
Capital
Perpetual
Governmental
Service
Projects
Care
Funds
—
$ -
$ -
$ -
$ 2,444,585
8,375
42,285
25,096
225,062
-
-
53,619
53,619
8,375
42,285
78,715
2,723,266
-
-
-
319,871
405,000
-
-
857,562
234,103
-
-
243,920
-
169,353
-
169,353
639,103
169,353
-
1,590,706
(630,728)
(127,068)
78,715
1,132,560
633,851
-
-
633,851
-
-
(25,096)
(679,993)
633,851
-
(25,096)
(46,142)
3,123
(127,068)
53,619
1,086,418
349,656
926,750
493,870
4,560,533
$ 352,779
$ 799,682
$ 547,489
$ 5,646,951
59
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 88
CITY OF CLERMONT, FLORIDA
RECREATION IMPACT FEE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended September 30, 2006
Variance with
Budgeted Amounts
Final Budget -
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues:
Impactfees/special assessments
$ 400,000
$ 400,000
$ 1,518,131
$ 1,118,131
Investment income
19,900
19,900
56,679
36,779
Total revenues
419,900
419,900
1,574,810
1,154,910
Expenditures:
Current:
Culture and recreation
62,850
62,850
-
62,850
Debt service:
Principal retirement
400,000
400,000
400,000
-
Totalexpenditures
462,850
462,850
400,000
62,850
Excess (Deficiency) of Revenues
Over Expenditures
(42,950)
(42,950)
1,174,810
1,217,760
Other Financing Sources (Uses):
Transfers out
(500,000)
(553,482)
(553,481)
1
Total other financing sources (uses)
(500,000)
(553,482)
(553,481)
1
Net Change in Fund Balance
(542,950)
(596,432)
621,329
1,217,761
Fund Balances -Beginning
1,035,365
1,035,365
1,035,365
-
Fund Balances -Ending
$ 492,415
$ 438,933
$ 1,656,694
$ 1,217,761
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 89
CITY OF CLERMONT, FLORIDA
POLICE IMPACT FEES SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
For The Year Ended September 30, 2006
61
Variance with
Budgeted Amounts
Final Budget -
Actual
Positive
Original
Final
Amounts
(Negatve)
Revenues:
Impact fees/special assessments
$ 300,000
$ 300,000
$ 523,204
$ 223,204
Investment income
23,000
23,000
67,838
44,838
Total revenues
323,000
323,000
591,042
268,042
Expenditures:
Current:
Public safety:
Law enforcement
383,660
383,660
128,725
254,935
Total expenditures
383,660
383,660
128,725
254,935
Excess (Deficiency) of Revenues
Over Expenditures
(60,660)
(60,660)
462,317
522,977
Net Change in Fund Balance
(60,660)
(60,660)
462,317
522,977
Fund Balances -Beginning
1,253,806
1,253,806
1,253,806
-
Fund Balances -Ending
$ 1,193,146
$ 1,193,146
$ 1,716,123
$ 522,977
61
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 90
CITY OF CLERMONT, FLORIDA
FIRE IMPACT FEES SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended September 30, 2006
Revenues:
Impact fees/special assessments
Investment income
Total revenues
Expenditures:
Current:
Public safety:
Fire control
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Variance with
Budgeted Amounts Final Budget -
Actual Positive
Original Final Amounts (Negafive)
$ 300,000 $ 300,000 $ 403,250 $ 103,250
9,000 9,000 24,789 15,789
309,000 309,000 428,039 119,039
570,480 570,480 191,146 379,334
102,563 102,563 52,562 50,001
11,370 11,370 9,817 1,553
684,413 684,413 253,525 430,888
(375,413) (375,413) 174,514 549,927
Other Financing Sources (Uses):
Transfers out
(102,205)
(102,205)
(101,416)
789
Total other financing sources (uses)
(102,205)
(102,205)
(101,416)
789
Net Change in Fund Balances
(477,618)
(477,618)
73,098
550,716
Fund Balances - Beginning
501,086
501,086
501,086
-
Fund Balances -Ending
$ 23,468 $
23,468
$ 574,184 $
550,716
62
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 91
CITY OF CLERMONT, FLORIDA
2002 PUBLIC IMPROVEMENT DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended September 30, 2006
63
Variance with
Budgeted Amounts
Final Budget -
Actual
Positive
Original
Final
Amounts
(Negafive)
Revenues:
Investment income
$ 3,000
$ 3,000
$ 8,375
$ 5,375
Total revenues
3,000
3,000
8,375
5,375
Expenditures:
Debt service:
Principal retirement
405,000
405,000
405,000
-
Interest and fiscal charges
234,104
234,104
234,103
1
Total expenditures
639,104
639,104
639,103
1
Excess (Deficiency) of Revenues
Over Expenditures
(636,104)
(636,104)
(630,728)
5,376
Other Financing Sources (Uses):
Transfersin
638,778
638,778
633,851
(4,927)
Total other financing sources (uses)
638,778
638,778
633,851
(4,927)
Net Change in Fund Balances
2,674
2,674
3,123
449
Fund Balances - Beginning
349,656
349,656
349,656
-
Fund Balances -Ending
$ 352,330
$ 352,330
$ 352,779
$ 449
63
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 92
CITY OF CLERMONT, FLORIDA
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
For The Year Ended September 30, 2006
Excess (Deficiency) of Revenues
Over Expenditures (6,238,300) (6,238,300) (127,068) 6,111,232
Other Financing Sources (Uses):
Note payable issued 1,632,300 1,632,300 - (1,632,300)
Transfers in 3,700,000 3,700,000 - (3,700,000)
Total otherfinancing sources (uses) 5,332,300 5,332,300 - (5,332,300)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
(906,000) (906,000) (127,068) 778,932
926,750 926,750 926,750 -
$ 20,750 $ 20,750 $ 799,682 $ 778,932
M
Variance with
Budgeted Amounts
Final Budget -
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues:
Investment Income
$ 11,700
$ 11,700
$ 42,285
$ 30,585
Total revenues
11,700
11,700
42,285
30,585
Expenditures:
Capital outlay:
Culture and recreation
6,250,000
6,250,000
169,353
6,080,647
Total expenditures
6,250,000
6,250,000
169,353
6,080,647
Excess (Deficiency) of Revenues
Over Expenditures (6,238,300) (6,238,300) (127,068) 6,111,232
Other Financing Sources (Uses):
Note payable issued 1,632,300 1,632,300 - (1,632,300)
Transfers in 3,700,000 3,700,000 - (3,700,000)
Total otherfinancing sources (uses) 5,332,300 5,332,300 - (5,332,300)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
(906,000) (906,000) (127,068) 778,932
926,750 926,750 926,750 -
$ 20,750 $ 20,750 $ 799,682 $ 778,932
M
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 93
FIDUCIARY FUNDS
Pension Trust Funds
General Employees' Pension Trust Fund
Police Officers' Pension Trust Fund
Firefighters' 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 employ-
ees salaries is used in determining the annual contribu-
tion to the defined contribution plan.
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 deter-
mined by an actuarial study.
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.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 94
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 95
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2006
General Employees Police
Defined Defined Officers Firefighters
Benefit Contribution Pension Trust Pension Trust
Total
Employee
Pension Funds
Assets:
Cash $ 13,692 $ 47,207 $ 76,148 $ 30,431 $ 167,478
Investments 768,687 2,650,319 4,275,189 1,708,491 9,402,686
Total Assets: 782,379 2,697,526 4,351,337 1,738,922 9,570,164
Liabilities:
Accounts payable
Net Assets Held in Trust
for Pension Benefits $ 782,379 $ 2,697,526 $ 4,351,337 $ 1,738,922 $ 9,570,164
65
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 96
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For The Year Ended September 30, 2006
Net Assets Held in Trust for
Pension Benefits :
Beginning of Year 816,972 2,527,432 3,766,134 1,404,632 8,515,170
End ofYear 782,379 $ 2,697,526 $ 4,351,337 $ 1,738,922 $ 9,570,164
:•
General Employees
Police
Total
Defined
Defined
Officers
Firefighters
Employee
Benefit
Contribution
Pension Trust
Pension Trust
Pension Funds
Additions:
Contributions:
Employer
$ 7,100
$ 362,498
$ 167,845
103,178
$ 640,621
Plan members
-
-
53,204
13,971
67,175
State
-
-
199,035
122,106
321,141
Total contributions
7,100
362,498
420,084
239,255
1,028,937
Investments income:
Net increase in fair value
57,933
165,322
289,131
112,762
625,148
Less investment expense
-
-
-
-
-
Net investment income
57,933
165,322
289,131
112,762
625,148
Total additions
65,033
527,820
709,215
352,017
1,654,085
Deductions:
Benefits/distributions
92,824
340,245
106,830
6,701
546,600
Administrative expenses
6,802
17,481
17,182
11,026
52,491
Total deductions
99,626
357,726
124,012
17,727
599,091
Change in Net Assets
(34,593)
170,094
585,203
334,290
1,054,994
Net Assets Held in Trust for
Pension Benefits :
Beginning of Year 816,972 2,527,432 3,766,134 1,404,632 8,515,170
End ofYear 782,379 $ 2,697,526 $ 4,351,337 $ 1,738,922 $ 9,570,164
:•
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 97
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL FUNDS
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 98
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 99
CITY OF CLERMONT, FLORIDA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
For The Year Ended September 30, 2006
Improvements/ Machinery/
Land Buildings Infrastructure Equipment Total
General Government
$ 170,115
$ 5,553,681
$ 14,575
$ 1,296,794
$ 7,035,165
Public Safety
447,564
1,646,560
-
4,219,205
6,313,329
Physical Environment/
7,037,782
82,799
- 7,120,581
Culture & Recreation
10,605,121
Transportation
119,494
728,159
5,685,306
587,622
7,120,581
Culture & Recreation
12,014,824
956,830
5,451,796
598,833
19,022,283
Older Assets not
81,610 $ 39,863,445
Maintained by Function
189,500
14,780
146,373
21,434
372,087
Total
$ 12,941,497
$ 8,900,010
$ 11,298,050
$ 6,723,888
$ 39,863,445
Deletions
Balance and Balance
09-30-05 Additions Transfers 0930-06
General Government
$ 6,837,848 $
197,317 $
- $ 7,035,165
Public Safety
5,173,681
1,221,258
81,610 6,313,329
Physical Environment/
Transportation
7,037,782
82,799
- 7,120,581
Culture & Recreation
10,605,121
8,417,162
- 19,022,283
Older Assets not
Maintained by Function
372,087
-
- 372,087
Total
$ 30,026,519 $
9,918,536 $
81,610 $ 39,863,445
67
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 100
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 101
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 68
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 77
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity 81
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 85
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 89
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.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 102
City of Clermont, Florida
Net Assets by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
1997 1998 1999 2000
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted STATISTICAL SECTION
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
Data not available prior to the implementation of GASB Statement 34.
M
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 103
Fiscal Year
2001 2002 2003 2004 2005 2006
$ 10,959 $ 12,118 $ 15,777
3,121 4,800 5,935
5,619 8,125 8,693
$ 19,699 $ 25,043 $ 30,405
$
12,054
$
12,082
$
15,864
22,601
27,573
33,732
9,903
13,414
13,447
$
44,558
$
53,069
$
63,043
$
23,013
$
24,200
$
31,641
25,722
32,373
39,667
15,522
21,539
22,140
$
64,257
$
78,112
$
93,448
69
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 104
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 106
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 107
City of Clermont, Florida
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal
Property
Franchise
Utility
Year
Tax
Fees
Tax
Total
1997
$617
$467
$787
$1,871
1998
710
528
885
2,123
1999
838
560
1,027
2,425
2000
1,205
654
1,248
3,107
2001
1,594
806
1,552
3,952
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
2005
4,321
1,357
2,617
8,295
1,157
368
2006
5,488
1,714
2,948
10,150
Taxes Included in Unrestricted Intergovernmental Revenues
Fiscal
Sales
State Revenue
Local Option
Year
Tax
Sharing
Gas Tax
Total
1997
$280
$150
$173
$603
1998
301
155
172
$628
1999
336
151
199
$686
2000
381
169
206
$756
2001
416
187
213
$816
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
72
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 108
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
1997 1998 1999 2000
General fund
Reserved
Unreserved
Total general fund
All other governmental funds
Reserved
Unreserved, reported in:
Special revenue funds
Capital projects fund
Total all other governmental funds
$
44
$
50
$
43
$
54
793
713
736
1,407
$
837
$
763
$
779
$
1,461
$ 346 $ 368 $ 393 $ 409
132 199 458 1,291
1,088
$ 478 $ 567 $ 851 $ 2,788
73
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 109
Fiscal Year
2001 2002 2003 2004 2005 2006
$ 97 $
162 $
167 $
168 $
198 $
233
2,120
2,559
3,110
4,207
5,758
4,857
$ 2,217 $
2,721 $
3,277 $
4,375 $
5,956 $
5,090
$ 430 $
512 $
760 $
894 $ 1,083 $
1,189
793
1,003
2,318
3,410 5,028
7,767
669
4,423
106
- 926
780
$ 1,892 $
5,938 $
3,184 $
4,304 $ 7,037 $
9,736
74
msatyC:ermontC: m20199_C:tyC:ermont-:3 a Page 110
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 114
Taxpayer
John P. Adams & Ann D.
Adams Family LP
Lennar Homes, Inc.
South Lake Hospital, Inc.
Lost Lake Reserve LC
Sundance Clermont LLC
Clermont Center LTD
Regency Hills by Levitt
& Sons LLC
KB Home Orlando LLC
Target Corporation
Village at East Lake LP
Clermont Venture LTD
John Hurtak, Trustee
Lake Highlands Assoc, Inc.
Lakeworth MHP, LTD
Patrick G. Kelley, Trustee
Indian Shores Development
Maynard Knapp, Trustee
Star Development
TOTAL
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
2006
1997
Percentage of
Percentage of
Taxable Total Taxable
Taxable Total Taxable
Assessed Assessed
Assessed Assessed
Value Rank Value
Value Rank Value
$27,391 1
27,122 2
20,148 3
12,231 4
11,890 5
10,923 6
10,384 7
10,235 8
9,984 9
9,860 10
$150,168
Source: Lake County Property Appraiser
79
1.78%
1.76%
1.31%
0.79%
0.77%
0.71%
0.67%
0.66%
0.65%
0.64%
9.74%
$3,852 4 1.81%
4,821 3 2.26%
6,262
1
2.94%
5,145
2
2.41%
3,225
5
1.51%
3,122
6
1.46%
2,215
7
1.04%
2,050
8
0.96%
1,290
9
0.61%
1,160
10
0.54%
$33,142
15.55%
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 115
City of Clermont, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Collected within the
Year
Total Tax
Fiscal Year of the Levy
Collections in
Total Collections to Date
Ended
Levy for
Percentage
Subsequent
Percentage
September
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
1997
$635
$608
95.7%
$9
$617
97.2%
1998
737
700
95.0%
10
710
96.3%
1999
869
836
96.2%
2
838
96.4%
2000
1,242
1,201
96.7%
4
1,205
97.0%
2001
1,680
1,607
95.7%
14
1,621
96.5%
2002
2,130
2,054
96.4%
10
2,064
96.9%
2003
2,685
2,586
96.3%
9
2,595
96.6%
2004
3,414
3,293
96.5%
10
3,303
96.8%
2005
4,469
4,310
96.4%
5
4,315
96.6%
2006
5,749
5,544
96.4%
5,544
96.4%
Note: Property taxes become due and payable on November 1 st 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.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 116
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics on page 85 for personal income and population data.
Information is not available.
Business -Type
Fiscal
Governmental Activities
Activities
Year
Water & Sewer
Total
Percentage
Ended
Revenue
Notes
Line of
Refunding
Primary
of Personal
Sept
Bonds
Payable
Credit
Revenue Bonds
Government
Income
Per Capita'
1997
$1,125
$36
$ -
$11,305
$12,466
$1,644
1998
950
31
-
11,135
$12,116
1,477
1999
765
424
-
10,960
$12,149
1,371
2000
565
744
2,000
10,780
$14,089
6.87%
1,490
2001
355
630
2,000
17,935
$20,920
1,979
2002
6,965
459
-
17,935
$25,359
1,849
2003
6,965
381
-
17,935
$25,281
1,643
2004
6,575
1,064
-
17,935
$25,574
1,449
2005
6,180
605
-
17,835
$24,620
1,230
2006
5,775
5,392
-
17,685
$28,852
5.66%
1,312
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics on page 85 for personal income and population data.
Information is not available.
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 117
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 120
City of Clermont, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
Note: Unemployment rate information is available on a countywide basis only.
* Information is not available.
Personal
Education
Income
Level in
(amounts
Per Capita
Years of
Fiscal
expressed in
Personal
Median
Formal
School
Unemploy-
Year
Population' thousands)
Income
Agee
Schooling2
Enrollment'
ment Rate
1997
7,582
2,180
4.1%
1998
8,202
2,412
3.3%
1999
8,861
3,683
2.7%
2000
9,455 204,937
21,675
37.6
13.2
3,841
3.6%
2001
10,571
4,500
4.4%
2002
13,718
4,616
5.6%
2003
15,391
4,630
5.0%
2004
17,654
5,219
4.3%
2005
20,017
5,165
3.6%
2006
21,986 509,987
23,196
35.9
13.5
5,375
3.1%
Sources:
' College of Business Administration, University of Florida -
Bureau of Economic and
Business Research
2 Metro Orlando Economic Development
Commission
s 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.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 121
Employer
South Lake Hospital, Inc.
Lake County School System
Walmart
Publix Supermarkets
Target Corporation
City of Clermont
Home Depot
Westminister Care of Clermont
CBS Builders Supply Inc.
Winn Dixie
Lake Highlands Assoc, Inc.
Quincy's Steak House
Exceletech, Inc.
South Lake Ford
TOTAL
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
2006 1997
The City of Clermont has an estimated daytime population of 7,105 with approximately 1,007 business
establishments as of 9/30/2006.
Information is not available.
RE
Percentage of
Percentage of
Total City
Total City
Employees
Rank
Employment'
Employees
Rank
Employment
983
1
13.84%
299
1
557
2
7.84%
115
5
446
3
6.28%
349
4
4.91%
244
2
265
5
3.73%
257
6
3.62%
83
7
197
7
2.77%
160
8
2.25%
142
9
2.00%
86
6
130
10
1.83%
225
3
125
4
69
8
65
9
45
10
3,486
49.06%
1,356
The City of Clermont has an estimated daytime population of 7,105 with approximately 1,007 business
establishments as of 9/30/2006.
Information is not available.
RE
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 122
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
2006 1997
Usage Percentage of Usage
(thousands Total City (thousands
Employer of gallons) Rank Metered Flow' of gallons) Rank
Percentage of
Total City
Metered Flow
Lake County Schools
25,054
1
1.18%
South Lake Hospital, Inc.
23,512
2
1.11%
Westminister Care of Clermont
15,687
3
0.74%
Osprey Ridge Apartments
10,484
4
0.49%
Grandview Apartments
9,571
5
0.45%
Sundance Apartments
9,384
6
0.44%
Village at East Lake
8,447
7
0.40%
Emerald Lakes Mobile Home Park
7,375
8
0.35%
Oakridge Apartments
6,328
9
0.30%
Blue Water Express Car Wash
5,744
10
0.27%
TOTAL
121,586
5.73%
The City of Clermont had a total metered water flow of approximately 2,121,588,000 gallons for the
12 -month period ending September 30, 2006
Information is not available.
I'm
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 123
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 733,232,000
gallons for the 12 -month period ending September 30, 2006
Information is not available.
M.-
2006
1997
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
Employer
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
South Lake Hospital, Inc.
22,519
1
3.07%
Lake County Schools
17,919
2
2.44%
Westminister Care of Clermont
13,843
3
1.89%
Osprey Ridge Apartments
10,484
4
1.43%
Grandview Apartments
9,571
5
1.31%
Sundance Apartments
9,384
6
1.28%
Village at East Lake
8,447
7
1.15%
Emerald Lakes Mobile Home Park
7,375
8
1.01%
Oakridge Apartments
6,328
9
0.86%
Blue Water Express Car Wash
5,744
10
0.78%
TOTAL
111,614
15.22%
The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 733,232,000
gallons for the 12 -month period ending September 30, 2006
Information is not available.
M.-
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 124
This page intentionally left blank.
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 125
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 126
City of Clermont, Florida
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
Function
1997
1998
1999
2000
General Government
Municipal boundary (square miles)
11.26
11.26
11.26
11.26
Occupational licenses issued
A/P Checks issued
2,875
3,024
3,757
Commercial construction (units)
14
13
5
11
Commercial construction
(value in thousands)
3,341
24,687
17,725
22,396
Residential construction (units)
289
333
492
711
Residential construction
(value in thousands)
17,798
21,414
34,375
58,830
Public Safety:
Police
Auto accidents
324
330
305
392
Physical arrests
532
411
318
397
911 calls received
Evidence processed (pieces)
5
8
123
229
Parking violations
Traffic violations
2,931
3,510
2,220
4,562
Fire
Volunteer firefighters
25
25
33
34
Fire inspections completed
304
319
319
266
Emergency calls answered
277
412
579
831
Non -emergency calls answered
43
51
64
54
Human Services
Animals captured
126
231
Water
Residential customers
3,987
4,549
5,009
5,992
Commercial customers
439
447
490
531
Annual water usage
(thousands of gallons)
833,834
1,087,078
1,146,663
1,394,359
Sewer
Residential customers
2,770
3,099
3,328
3,928
Commercial customers
386
388
443
458
Sources: Various government departments.
. Data not available.
•o
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 127
Fiscal Year
2001
2002
2003
2004
2005
2006
11.29
11.18
11.88
11.97
12.45
14.13
1,202
1,290
1,468
1,551
1,795
1,985
4,481
4,808
4,940
4,967
5,437
5,677
17
39
22
24
23
38
17,264
52,343
18,758
14,272
7,115
17,534
884
829
959
1,155
673
635
82,040
77,470
124,837
158,458
103,672
186,189
374
390
489
541
671
625
462
465
449
414
500
707
5,580
6,262
7,008
311
1,123
1,075
1,054
1,127
1,610
8
36
48
87
71
161
3,489
3,623
2,713
2,394
2,855
5,259
34
34
34
34
27
27
279
494
441
483
457
625
1,556
2,271
2,506
3,093
3,321
3,132
65
77
86
143
143
189
488
521
364
562
445
495
7,303
8,461
10,529
12,751
14,284
15,733
579
644
723
817
921
993
1,365,196
1,299,701
1,338,818
1,655,203
1,788,337
2,121,588
5,001
6,243
7,650
9,217
10,176
11,125
511
581
673
767
883
955
91
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :24 PM Page 128
City of Clermont, Florida
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
Function
1997
1998
1999
2000
General Government
Public Safety:
Police
Police stations
1
1
1
1
Patrol units
19
22
24
25
Fire
Fire stations
1
1
1
1
Staffed fire stations
0
0
1
1
Fire hydrants
227
227
642
657
Fire apparatus
5
5
5
6
Staffed fire apparatus
0
0
0
1
ALS non -transport units
0
0
0
0
Transportation
Streets paved (miles)
46.00
46.00
48.00
52.00
Streetlights
699
699
775
825
Culture & Recreation
Number of parks
21
21
22
22
Parks acreage
88.0
88.0
101.5
101.5
Scenic linear trail (miles)
Tennis courts
4
4
4
4
Fishing piers
••
••
••
••
Boat ramp
1
1
1
1
Libraries
1
1
1
1
Water
Miles of water mains
Sewer
Miles of sanitary sewers
Miles of storm sewers
Sources: Various government departments.
Data not available.
"Asset was not in service.
92
24037 CityClermont CAFR FINAL:20199_CityClermont-RGB3 3/20/07 :24 PM Page 129
93
Fiscal Year
2001
2002
2003
2004
2005
2006
1
1
1
1
1
1
27
29
31
34
38
45
3
3
3
3
3
3
2
2
2
2
2
2
840
940
1,064
1,200
1,431
1,630
7
6
7
7
8
9
2
2
2
2
3
4
1
1
2
3
3
3
77.00
88.74
92.90
97.00
101.39
109.94
875
1,056
1,056
1,106
1,131
1,231
22
22
22
22
22
22
101.5
101.5
101.5
101.5
101.5
101.5
3.5
3.5
3.5
3.5
5.7
5.7
6
6
6
8
8
8
4
4
4
4
4
4
1
1
1
1
1
1
1
1
1
1
1
1
88.74
88.74
92.94
97.23
104.52
34.00
39.05
39.05
41.15
44.26
49.51
8.50
9.11
9.11
9.53
10.27
11.13
93
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :25 PM Page 130
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24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :25 PM Page 131
MCDIRMIT /// DAvis
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and
City Council
City of Clermont, Florida
We have audited the basic financial statements of the City of Clermont, Florida, as of and for the
year ended September 30, 2006, and have issued our report thereon dated November 15, 2006.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Compliance and Other Matters - As part of obtaining reasonable assurance about whether the
City of Clermont, Florida's basic 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 that are required to be
reported under Government Auditing Standards. However, we noted certain immaterial instances
of noncompliance that we have reported to management of the City of Clermont, Florida in a
separate letter dated November 15, 2006.
Internal Control Over Financial Reporting - In planning and performing our audit, we
considered the City of Clermont, Florida's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinion on the basic financial
statements and not to provide assurance on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all
matters in the internal control over financial reporting that might be material weaknesses. A
material weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk that misstatements in
amounts that would be material in relation to the basic financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of performing
their assigned functions. We noted no matters involving the internal control over financial reporting
and its operation that we consider to be material weaknesses. However, we noted other matters
involving the internal control over financial reporting that we have reported to management of the
City of Clermont, Florida in a separate letter dated November 15, 2006.
MCDIRMIT DAMS & COMPANY, LLC
605 L. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32801
TELEPHONE 407-843-5406' FAX 407-649-9339 • EMAIL: INF0@,MCDIRMITDAVIS.00M
MEMBERS: PRNA IL COMPANIES PRACTICF SFCTI09 • AMERICAN I-V SLITL'TL DP CER IIFIRLI PgBL IC All OLNTANTS • FFOR IBA INSTRLTE 01 C6WI LFIEO PIIBI.IC ACCOUNTAGIS
041
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :25 PM Page 132
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.
-QLuttit Astrid I& e&ga,904 LLC
November 15. 2006
95
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :25 PM Page 133
Affidavit of Impact Fee Compliance
Impact fee collections, expenditures and accounting are provided for in
separate accounting funds and comply with Florida Statute 163.31801.
-7 + Joseph an ile
Direct Administrative Services
M.
24037 CityClermont CAFR FINAL:20199_CityC1ermont-RGB3 3/20/07 :25 PM Page 134
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