Comprehensive Annual Financial Report - 2014-2015City Of C pie rm o n t
IFIRMIM-M
Comprehensive Annua[ FinanciaCWsport
Tiscaf Tear Ended
Septem6er30.. 2015
Lake W k watFia (Preserve
On November 15, 2015, the City of Clermont unveifedits newest park
Lake Yfiawatha (Preserve. It is a 220 -acre, passive park which includes two dog
parks, picnic pavilions anda playgroundwith a working, old fashionedwater tank
r1he park is located at 450 X. 121h Street in Clermont.
Owmpions Splash Park
r1he City also officially opened the new Champions Splash Tarkfocated at
Water Tarkon �44arch 27, 2015. Champions Splash Sarkis a colorful
3,245 square foot facility with aeriafspray features open to children of affages
from -blanch through October.
CITY OT CLE"09V '
Comprehensive Annna! Financia! deport
For The Tear Endedsoptem6et 30, 2015
TYepared by:
Tinance Department
cLEIRlv(ONT
Choice of Champions'
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2015
Pape
I. Introductory Section:
Table of Contents
i
Letter of Transmittal
v
GFOA Certificate of Achievement
ix
List of Principal Officials
xi
Organizational Chart
xii
II. Financial Section:
Independent Auditor's Report
1
Management's Discussion and Analysis
3
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
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
19
Activities
Statement of Revenues, Expenditures and Changes in Fund
20
Balances - Budget and Actual - General Fund
Statement of Revenues, Expenditures and Changes in Fund
22
Balances - Budget and Actual — Infrastructure Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund
23
Balances - Budget and Actual — Community Redevelopment
Special Revenue Fund
Statement of Net Position - Proprietary Funds
24
Statement of Revenues, Expenses and Changes in
27
Fund Net Position - Proprietary Funds
Statement of Cash Flows — Proprietary Funds
28
Statement of Fiduciary Net Position - Fiduciary Funds
30
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
31
Notes to Financial Statements
33
Required Supplementary Information
71
Major Governmental Funds:
79
Capital Projects Fund
80
Other Governmental Funds:
81
Combining Balance Sheet— Other Governmental Funds
82
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2015
Pape
II. Financial Section - Continued:
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Other Governmental Funds 84
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual:
Special Revenue Funds 86
Debt Service Fund 90
Combining Statement of Fiduciary Net Position 92
Combining Statement of Changes in Fiduciary Net Position 93
III. Statistical Section:
Net Position by Component
96
Changes in Net Position
98
Fund Balances of Governmental Funds
102
Changes in Fund Balances of Governmental Funds
104
Governmental Activities Tax Revenues by Source
106
Assessed Value and Estimated Actual Value of Taxable Property
107
Property Tax Rates — Direct and Overlapping Governments
108
Principal Property Taxpayers
109
Property Tax Levies and Collections
110
Ratios of Outstanding Debt by Type
111
Direct and Overlapping Governmental Activities Debt
112
Pledged -Revenue Coverage
113
Demographic and Economic Statistics
116
Principal Employers
117
Principal Water Customers
118
Principal Sewer Customers
119
Full-time Equivalent City Government Employees by Function
120
Operating Indicators by Function
122
Capital Asset Statistics by Function
124
IV. Other Reports:
Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards 127
Independent Auditor's Report on Compliance for Each Major Program and on
Internal Control Over Compliance in Accordance with OMB Circular A-133 129
Schedule of Expenditures of Federal Awards 131
Notes to Schedule of Expenditures of Federal Awards 132
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2015
IV. Other Reports - Continued
Schedule of Findings and Questioned Costs — Federal Awards 133
Management Letter 135
Communication with those Charged with Governance 137
Independent Auditor's Report on Compliance with the Requirements of
Section 218.415, Florida Statues 141
cLEIRlv(ONT
Choice of Champions'
iv
CLER 0
Choice of Champions
April 27, 2016
To the Honorable Mayor and City Council and Citizens of the City of Clermont, Florida
We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the City of Clermont,
Florida, for the fiscal year ended September 30, 2015. State law requires that every general-purpose local
government publish within nine 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,
2015.
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,
2015, 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 unmodified opinion that the City of Clermont's financial statements for
the fiscal year ended September 30, 2015, 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.
685 W. Montrose Street • Clermont, FL 34711 • www.ClermontFL.gov
V
Profile of the City of Clermont
The City was founded in 1884 and incorporated in 1916. The City currently has a land area of 16.65
square miles and population of approximately 32,348. The City is located in south Lake County,
approximately 22 miles west of the City of Orlando and about 25 miles northwest of Walt Disney World.
Clermont, known as "Choice Of Champions", is truly the crossroads of Florida, at the intersection of State
Road 50 that runs east and west across the state and U.S. Highway 27, which runs north and south through
the center of the state. Clermont is on a chain of 15 lakes connected by the winding Palatlakaha River in
the Ocklawaha Basin of tributaries of the St. Johns River, the only river system in the United States of
America that flows north. The lakes offer residents the opportunity for excellent fishing, boating, swimming
and other water sports including competitive skiing and wakeboarding offered by world-class instructional
schools.
The City of Clermont is known for its scenic beauty, relaxed lifestyle, recreational facilities and temperate
climate. Residents have a wide variety of housing and property -ownership opportunities, including
lakefront and lake -access property, golf -course communities, homes in existing neighborhoods, residential
retirement communities, and new subdivisions. The City of Clermont Parks and Recreation Department
operates 23 parks, 5.7 miles of scenic paved trails, 10 piers measuring a total of 1,818 feet, 1-800 foot
boardwalk, 7 special purpose buildings and a boat ramp.
The City of Clermont provides a full range of services as directed by its charter. These include police and
fire protection; streets and sidewalk maintenance, planning and development, code enforcement,
recreational facilities and programs, cemetery and general administrative functions. The City also provides
potable water, wastewater collection and treatment, reclaimed water production and distribution,
stormwater treatment, solid waste collection, and recycling services.
The City operates according to a Council/Manager form of government, with an appointed City Manager,
four elected City Council members and an elected Mayor. The governing body has legislative
responsibilities including setting policy, passing ordinances, adopting the budget, appointing committees,
and hiring the City's Manager. The City Manager is responsible for carrying out the policies and ordinances
of the governing body, for overseeing the day-to-day operations of the government, and for hiring the
directors of the various departments.
The annual budget serves as the foundation the City of Clermont's financial planning and control. All
departments of the City of Clermont are required to submit requests for appropriations to the City Manager.
The City Manager then uses these requests as the starting point for developing a proposed budget. The
City Manager then presents this proposed budget to the Council for review. The City Council is required
to hold public hearings on the proposed budget and to adopt a final budget by no later than September 30,
the close of the City of Clermont's fiscal year. The appropriated budget is prepared by fund (e.g. general
fund), and department (e.g. fire department). The City Manager may make transfers of appropriations
within departments; however, any revisions that alter the total appropriations of a department must be
approved by City Council. Original 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 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. The Capital
Projects Fund is presented on page 80, followed by the other governmental funds, which start on page 82.
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.
685 W. Montrose Street • Clermont, FL 34711 • www.ClermontFL.gov
Vi
Local economy. The City of Clermont is essentially residential in character and its economy is centered
in retail, real estate, personal services and healthcare. At September 30, 2015, Lake County's
unemployment rate was 5.2%, which is a decrease of 1.1 %from 2014. Clermont's unemployment rate was
below the County average for the 6'h year in a row at 4.8% for 2015. This is lower than both the state's
average of 5.4% and the national average of 4.9%. Educational institutions in Clermont such as Lake -
Sumter State College and the University of Central Florida assist in supplying a skilled labor force.
The cost of living for the region is below the national average. There is no personal income tax, either
locally or state-wide. Sales tax, currently at 7%, is not charged on food or medicine. One cent of the sales
tax charged within the county is limited to $50 per transaction (1 % of $5,000). As discussed in the MD&A,
this additional penny sales tax must be used for infrastructure including roads, buildings, land, land
improvements and certain equipment.
Major initiatives. The following items are capital projects that are currently in the planning/design phase
for the City:
• The replacement of the existing Public Works Operations Complex — A space needs assessment
recommends a new public works operating complex with approximately 45,100 square feet and
anticipated to cost approximately $8 million. The project is anticipated to be funded by a debt
issuance pledged potentially by the one cent sales tax.
• Implementation of the Master Plan — In 2015, the Clermont City Council approved a Master Plan
that will serve as a blueprint for the city's future during the next five, 10 and 20 years. The Master
Plan offers an exciting view of the future of Clermont, the Choice of Champions. While much of the
focus is on the Downtown -Waterfront District, the Master Plan offers insights on how to keep the
growing city connected and how to protect the very charms that have drawn hundreds of thousands
to this internationally -recognized city that is one of the nation's top places to live and also a training
ground for the world's elite athletes. The Master Plan projects are estimated to cost approximately
$19.2 million and will be funded by the Community Redevelopment Fund, Stormwater Fund, one
cent sales tax and grants.
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.
The Clermont City Council and management through careful short and long range planning and sound
management practices are committed to budgeting and managing all resources in the most cost effective
manner.
Relevant financial policies. The City regularly reviews revenues and expenditures throughout the fiscal
year. During the course of the year, if actual revenues are expected to fall short of the budgeted amount,
expenditures are reduced to ensure that a shortage of funds or a significant use of fund balance does not
occur.
The City administers a cash management and investment program that seeks to maximize, in order of
priority, the preservation of funds, liquidity and interest earnings over its cash and investments. Cash
resources of the individual funds are combined to form a pool of cash and investments. The average cash
and investment pool balance during the year (not including pension funds) was $57,432,799 and the
685 W. Montrose Street • Clermont, FL 34711 • www.ClermontFL.gov
Vii
sage Investment earnings ate was 0.05%. Investment Income includes the change In the fair value of
investments During the year monies were invested in accordance with the Cry's investment policy.
Pension fund assets were Invested In accordance with the City Investment Policy for Retirement Funds.
The total pension fund cash and investments at year end were $30 941,904 and fund had a Toss on
investment of 0.14%
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada FDOA) 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, 2014. This was the 27th
consecutive yearthatthe Cary award has received this prestigious ard. In orderm awarded be arded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive
applial financial report. This report must satisfy both generally accepted accounting principles and
cable legal requirement.
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 itto the GFOA to determine is eligmiliry mranother certificate.
The preparation of this reportwould not have been possible withoutthe efficient and dedicated services of
the staffs In the City Manager's office and Finance Department Wewould like to express ourappreciation
to all members of there departments who assisted and contributed to the preparation of this report. A
special note of appreciation Is due Lacy SmitlFCasillo, Finance Managerfor herhard work and dedicated
efforts In the preparation of this report. Credit also mus 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
Clermontsfinances.
Respectfully submitted
DnarenGa�y� dos he
evan
Cy Manager Finn oirmr
685W Montrose Street . Clermont FL 34711 . wvwv.CleomontFLgov
�J
Government Finance Officers Association
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, 2014
Executive Director/CEO
cLEIRlv(ONT
Choice of Champions'
CITY OF CLERMONT, FLORIDA
LIST OF ELECTED AND APPOINTED OFFICIALS
SEPTEMBER 30, 2015
Mayor
Mayor Pro -Tem
Council Member
Council Member
Council Member
ELECTED OFFICIALS
Gail L. Ash
Ray Goodgame
Keith Mullins
Diane Travis
Timothy Bates
APPOINTED OFFICIALS 1
City Manager
Darren Gray
Assistant City Manager
James Kinzler
City Attorney
Dan Mantzaris
City Clerk
Tracy Ackroyd -Howe
Communications Director
Doris Bloodsworth
Economic Development Director
James Hitt
Environmental Services Director
Paul Roy
Finance Director
Joseph Van Zile
Fire Chief
Carle Bishop
Human Resources Director
Susan Dauderis
Information Technology Director
Don Dennis
Parks and Recreation Director
Scott Davidoff
Development Services Director
Barbara Hollerand
Police Chief
Charles Broadway
Public Works Director
Stoney Brunson
Purchasing Director
Freddy Suarez
xi
City
Attorney
Citizens
Clermont
City Council
City
Ma nage r
communications
City Development or ti Public Economic
aerk Finance serveas Technology Police Fire Works Developme
Records
Finance
Permitting
GIS
Criminal
81 ds
Capital
CRA
Management
Corut sts
Pr ogra in
Sewer
Investigations
Operations
Improvements
Cemetery
es&cords
Utility
Business
Network
Relations
Control
Scheduling
Economic
Ree
R
Billing
TaxRecelpts
Admin est an on
Enfoent
o cement
rm
Administration
Inspecto re
Development
Election
Budget
Zoning
Web ¢e
Road
Emergency
Coordination
Program
Qualifying
Theater
Management
patrol
Medial
Transportation
Development
Employee
Utility metal
Wellness
Services
Inn povem ents
Agenda
Development
Cash
Management
Planning
Appllost on
Community
Fire inspection
Fleet
Support
Relations
&PreventionMaintenance
Building
Security
Services
Systems
Facilities
Code
Grounds
Enforcement
Maintenance
cemetery
Maintenance
Ci to
Engineer
XII
Committees
Human/ \/ Parks& \/ Environmental
/J ` Purchasing J` Recreation l` Services
Program
Recml trnent
81 ds
Development
Water
Benefits
Corut sts
Pr ogra in
Sewer
Management
Employee
Property
Facility
Relations
Control
Scheduling
Sanitation
Labor
Community
Relations
P -Cards
Center
Stormwater
Workers'
Event
Compensation
Fuel Pro gam
Coordination
Canstruc0 on
Risk
Theater
Unit toAsset
Management
0peabons
Management
Employee
Utility metal
Wellness
Inn povem ents
MCDIRMI'I /// DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Clermont, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Clermont, Florida, as
of and for the year ended September 30, 2015, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
City of Clermont's management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund, and
the aggregate remaining fund information of City of Clermont, as of September 30, 2015, and the respective
changes in financial position and, where applicable, cash flows thereof and the respective budgetary
comparison for the General Fund, Infrastructure Special Revenue Fund, and Community Redevelopment
Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
MCDZRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO a@MCDIRMITDAVIS.COM
MEMBERS. PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Change in Accounting Principle
As discussed in Note 1 to the financial statements, in 2015, the city adopted new accounting guidance,
GASB Statement No. 68, Accounting and Financial Reporting for Pensions. Our opinion is not modified
with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the pension and other postemployment benefits disclosures on page 3 through
14 and 71 through 77 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise City of Clermont's basic financial statements. The introductory section, combining and individual
fund financial statements and schedules, statistical section and the Schedule of Expenditures of Federal
Awards, as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non -Profit Organizations, are presented for purposes of additional analysis and are not a
required part of the financial statements.
The combining and individual nonmajor fund financial statements and schedules and the Schedule of
Expenditures of Federal Awards are the responsibility of management and were derived from and related
directly to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated April 26, 2016 on
our consideration of City of Clermont's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering City of Clermont's internal control over financial reporting
and compliance.
Orlando, FL
April 26, 2016
5W,WAGE5WE9VTS(DISCE)SSI09V'.,79V ,W.9LTSIS
cLEIRlv(ONT
Choice of Champions'
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, 2015. 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 iv through vii of this report.
Financial Highlights
• The City of Clermont's assets and deferred outflows of resources exceeded its liabilities
and deferred inflows at September 30, 2015 by $164,431,319 (net position). Of this
amount, $38,592,552 (unrestricted net position) may be used to meet the City's
ongoing obligations to citizens and creditors.
• The City's total net position increased by $10,726,662 (or 7%) during fiscal year 2015
primarily due to the City adopting GASB Statement No. 68, Accounting and Financial
Reporting of Pensions. The pronouncement required the restatement of the September
30, 2014 net position which resulted in an increase of $6,525,025.
• At September 30, 2015, the City of Clermont's governmental funds reported combined
ending fund balances of $17,990,507 a decrease of $913,184 from the previous fiscal
year. Of this amount $7,013,550 (unassigned fund balance) is available for spending at
the government's discretion.
• The General Fund, the City's primary operating fund, reported an unassigned fund
balance of $7,013,550, which represents 32.1 % 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 Position and a
Statement of Activities. These statements appear on pages 15 and 16 of the report.
The Statement of Net Position presents information on all of the City's assets and liabilities and
deferred inflows/outflows of resources, with the difference reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Clermont that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the City of Clermont
include general government, public safety, physical environment, transportation, economic
3
environment, 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 governmeno and one blended component unit (The City of Clermont Community
Redevelopment Trust Fund).
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Clermont, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds of the City of Clermont can be
divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike
the government -wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating the City's
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City of Clermont maintains ten individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the General Fund, Capital Projects
Fund, Infrastructure Fund, and 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 non -major governmental funds is provided in
the form of combining statements elsewhere in this report.
The City of Clermont adopts an annual appropriated budget for all of its governmental funds.
Budgetary comparison statements have been provided for the General Fund (pages 20-21), the
Infrastructure Fund (page 22) and the Community Redevelopment Fund (page 23) to demonstrate
compliance with budgets. Other major and nonmajor funds comparisons can be found beginning
on page 79.
The basic governmental fund financial statements can be found on pages 17 - 23 of this report.
Proprietary funds. The City of Clermont maintains two types of proprietary funds: enterprise and
internal service, which can be found on pages 24-29 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 30 - 31 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 33 - 70 of this report.
Other information. The combining statements referred to earlier in connection with other
governmental and proprietary funds are presented immediately following the notes to the financial
statements. Combining and individual fund statements and schedules can be found on pages 80 -
93 of this report.
Government -Wide Financial Analysis
The following is a summary of the City's net position for governmental and business -type activities
for the current year as compared to the prior year. For more detail see the Statement of Net
Position on page 15.
Assets:
Current and other assets
Capital assets
Totalassets
Deferred Outflows of Resources:
Deferred outflow of pension earnings
Deferred charge ofrefunding
Total deferred outflows of resources
Liabilities:
Long-term liabilities outstanding
Other liabilities
Total liabilities
Deferred Inflow of Resources:
Deferred inflow of pension earnings
Net investment in capital assets
Restricted
Unrestricted
Net Position
Governmental Activities Business -type Activities Total
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
$26,304,928
54,901,599
$21,816,704
52,157,191
$42,150,163
69,800,664
$39,233,918
71,041,133
$ 68,455,091
124,702,263
$ 61,050,622
123,198,324
81,206,527
73,973,895
111,950,827
110,275,051
193,157,354
184,248,946
1,682,840
-
-
-
-
513,138
-
546,787
1,682,840
513,138
-
546,787
1,682,840
-
513,138
546,787
2,195,978
546,787
11,703,848
2,201,433
11,761,397
2,459,166
1,540,734
15,259,180
15,692,341
1,178,172
13,244,582
17,460,613
27,453,738
3,637,338
13,905,281
14,220,563
16,799,914
16,870,513
30,705,195
31,091,076
216,818
-
-
-
216,818
-
47,718,124
9,399,756
11,649,388
44,115,790
9,918,073
5,719,469
56,585,567
12,135,320
26,943,164
56,680,065
10,216,975
27,054,285
104,303,691
21,535,076
38,592,552
100,795,855
20,135,048
32,773,754
Total net position $68,767,268 $59,753,332 $95,664,051 $93,951,325 $164,431,319 $153,704,657
The City's total net position at September 30, 2015 was $164,431,319. Of the City's total net
position $104,303,691 (63.4%) 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 position, $21,535,076 (13.19/6) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of the City's
total net position, $38,592,552 (23.5%) 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 position increased by $10,726,662 during the current fiscal year. Major components
of this increase are discussed in the Governmental and Business -Type Activities sections to follow.
Restricted reserves represent the accumulation of impact fee funds for upcoming and ongoing
capital projects.
The following is a summary of the City's governmental and business -type activities for fiscal year
2014-15, including revenues and expenses, with a comparison to the prior year. For more detail
see the Statement of Activities on page 16.
Remainder of page intentionally left blank
11
Revenues:
Program revenues -
Charges forservices
Cperatinggrants and
contributions
Captial grants and
contributions
General revenues -
Property Taxes
Business Taxes
Franchise Fees
Utility Taxes
Intergrovernmental
Investment income
and miscellaneous
Gain on sale of capital
assets
Total revenues
Expenses:
General government
Public safety
Physical envirommnet
Transportation
Economic environment
Culture and recreation
debt
Water
Sewer
Sanitation
Stormwater
Total expenses
Increase (Decrease) in Net
Position Before Transfers
Special item -loss on sale
of capital asset
Transfers
Increase in Net Position
Net Position -Beginning, as
restated
Net Position -Ending
Governmental Activities
Activities Total
2014-15 2013-14 2014-15 2013-14 1 2014-15 2013-14
$ 5,357,705 $ 4,751,091
1,597,812 938,861
498,253 1,717,851
7,192,996
6,532,656
129,620
126,172
2,502,153
2,379,312
2,952,785
2,887,161
6,644,875
6,110,184
$15,356,903 $14,697,489
275,751 -
3,219,208 2,416,757
554,883 478,577 272,353 198,224
- - 1,765
27,431,082 25,921,865 1 19,124,215 17,314,235
3,847,784
3,406,735
14,325,704
14,117,124
453,027
350,243
2,094,223
2,201,649
566,746
362,766
4,018,441
3,095,752
193,229
236,466
154 23,770,735
4,822,683
4,589,022
6,570,897
6,436,780
3,132,989
2,471,861
1,079,920
1,016,124
5,606,489 14, 513, 787
$ 20,714,608 $ 19,448,580
1,873,563 938,861
3,717,461 4,134, 608
7,192, 996
129,620
2,502,153
2,952,785
6,644,875
827,236
46,555,297
3,847,784
14,325,704
453,027
2,094,223
566,746
4,018,441
193,229
4,822,683
6,570,897
3,132, 989
1,079,920
41
6,532,656
126,172
2,379,312
2,887,161
6,110,184
676,801
1,765
43,236,100
3,406,735
14,117,124
350,243
2,201,649
362,766
3,095,752
236,466
4,589,022
6,436,780
2,471,861
1,016,124
1,931,928 2,151,130 3,517,726 2,800,448 5,449,654 4,951,578
- - (1,248,017) - (1,248,017) -
556,983 438,893 (556,983) (438,893) - -
2,488,911 2,590,023 1,712,726 2,361,555 4,201,637 4,951,578
66,278,357 57,163,309 93,951,325 91,589,770 160,229,682 148,753,079
$68,767,268 $59,753,332 $95,664,051 $93,951,325 $164,431,319 $153,704,657
II
Governmental activities - Governmental activities increased the City of Clermont's net position by
$9,013,936, which is primarily due to the adoption of GASB Statement No. 68 and required prior
period adjustment as well as increased general government revenues and operating grants.
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.
$16,000,000
$14,000,000
$12,000,000
$to, 000,000
$0,000,000
$6000,000
$4,000,000
$2,000.000
$0
0,ener GIPwemmenr PuOIIrlefet, rr onmu01le Cmure & re,re,pon P6 1
Expenses and Program Revenues - Governmental Activities
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
• I utergovemments l • Cbargesfor services • Operating grants and contributions
• I nve4ment Income and miscellaneous •O[bertaxes • Capital grants and contributions
•Pro perty taxes
Property taxes
Capital grants and
mntrlbutlons, 1.8%
Other taxes, 2(
nvespnentlnmme and Operatlrg grants and
miscellaneous, 2.0% mntrlbutlons, 5.Ex6
8
�overnmental,
24.2%
rargesforery Ices,
19.5%
Business -type activities - Business -type activities increased the City of Clermont's net position by
$1,712,726. This change was due to increased revenue from services totaling $659,414, and
capital contributions totaling $3,219,208. These contributions are water and sewer impact fees
paid by developers. The fees were adopted by the City to require new development to pay its
proportionate share of the capital costs necessary to accommodate new development impacts on
the City's water and sewer system. The City is using this revenue for large capital projects that are
currently under construction such as the Reclaim Water System Expansion and the East Water
Loop.
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.
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
Expenses and Program Revenues - Business Type Activities
$7,818,914 $8,158,903
Water Sewer San ration Stormwater
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 Activities
■Invest mend income and miscellaneous ■operating grants and contributions
■ Charges for Services ■Capital Grantsand Contributions
Charges for
Services
80.3%
ital Grants
ontributions
16.8%O
Investment income
and miscellaneous
1.4%O
Operating grants
and contributions
1.5%O
9
Financial Analysis of the City's Funds
As noted earlier, the City of Clermont uses fund accounting to ensure and demonstrate
compliance with finance -related requirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Clermont's financing requirements. In particular, unassigned fund balance
may serve as a useful measure of a government's net resources available for spending at the
end of the fiscal year.
As of September 30, 2015, the City of Clermont's governmental funds reported combined
ending fund balances of $17,990,507 a decrease of $913,184 in comparison with the prior year.
This decrease is primarily due to the use of accumulated funds for planned capital projects. Of
the governmental funds combined ending fund balances, $7,013,550 (38.9%) represents
unassigned fund balance, which is available for spending at the City's discretion. An additional
$304,600 (assigned fund balance) has been set aside for encumbrances and fiscal year 2016
expenditures. Restricted fund balances totaling over $7.9 million include funds required for debt
service, as well as funds collected for specific purposes such as impact fees and community
redevelopment. The remainder of fund balance is nonspendable ($2,766,462) to indicate that it
is not available for spending because it has already been committed for inventories and prepaid
expenses, or it is being held in a non -expendable trust fund.
The General Fund is the chief operating fund of the City of Clermont. As of September 30,
2015, the fund balance in the General Fund was $8,864,949 a decrease of $371,461 in
comparison with the prior year due to current expenditures exceeding current revenues. The
change in fund balance was less than the anticipated amount of the original budget by $830,528
and $1.7 million less than the revised budget. Revenues exceeded budget by $1,183,603
mainly attributable to tax receipts coming in higher than anticipated due to additional collections
of delinquent taxes as well as fewer taxpayers taking advantage of the early payment discounts,
franchise fees and fines and forfeitures relating to the red light camera program. Departmental
expenditures also came in less than anticipated reducing the amount of reserves used. Of the
total fund balance in the General Fund, $7,013,550 (79%) is unassigned fund balance. As a
measure of the General Fund's liquidity, it may be useful to compare both unassigned fund
balance and total fund balance to total fund expenditures. Unassigned fund balance represents
32.1% of total General Fund expenditures, while total fund balance represents 40.6% of that
same amount.
The City has a Capital Projects Fund that is considered a major fund under criteria set forth by
GASB Statement No. 34. This fund is used to account for the acquisition of capital assets or
construction of major capital projects not being financed by proprietary funds. Funds have been
accumulated so projects can be completed on a pay-as-you-go basis.
The City has an Infrastructure Fund that is considered a major fund under criteria set forth by
GASB Statement No. 34. This fund was established to account for the proceeds of the Local
Government Infrastructure Surtax. The proceeds and interest accrued thereto, by law are only
to be used to finance, plan and construct infrastructure. The fund balance in this fund increased
by $91,082 in fiscal year 2015, which is $1,917,759 more than the revised budget. This
increase was due to both higher than anticipated revenues ($160,751) as well as reduced
expenditures ($1,513,197). Planned expenditures for the purchase of a new fire truck are being
rolled over to fiscal year 2016 due to the delay in delivery of the vehicle until after the end of the
fiscal year.
i[0
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, 2015,
the fund balance was $552,606, a decrease of $220,993 over the prior year. This decrease was
due to the commencement of the master plan and streetscape projects.
The remainder of the change $411,812 to the governmental fund balance was from the non -
major governmental funds. Police and Fire Impact Fee fund balances combined increased a
total of $303,080 due to both an increase in revenues as well as a delay in the planned use of
funds for capital projects. The Recreation Impact Fee fund decreased $653,206 due to capital
projects such as Lake Hiawatha Park, Rowing Facility, and the Splash Park. The fund balances
in the remaining nonmajor funds decreased a total of $61,686.
Proprietary Funds. Proprietary funds are used to account for operations (a) that are financed
and operated in a manner similar to private business enterprises where the intent of the
governing body is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through
user charges; or (b) where the governing body has decided that periodic determination of
revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes. The City's major
proprietary funds are water, sewer and sanitation.
The Water Fund accounts for the provision of potable water and reclaimed irrigation 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, 2015, the City of Clermont's Water Fund reported total net
position of $34,614,652, an increase of $1,545,734 in comparison with the prior year. This
increase in net position was due to an increase in operating income along with to lower than
anticipated operating expenses.
The Sewer Fund accounts for the provision of sewer services to City and non -City residents. All
activities necessary to the provision of these services are accounted for in this fund, including,
but not limited to administration, plant and line maintenance. As of September 30, 2015, the
City of Clermont's Sewer Fund reported total net position of $51,445,431, an increase of
$421,016 in comparison with the prior year. This increase is primarily due to capital
contributions.
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, 2015, the City of Clermont's Sanitation
Fund reported total net position of $4,928,871, an decrease of $187,058 in comparison with the
prior year, which is due to the implementation of single stream recycling program.
General Fund Budgetary Highlights
During the year there was an $818,431 increase in appropriations between the original and final
amended budget. Following are the main components of the increase:
• $252,512 for consultant services including non-utility fee study, fire assessment, Public
Works space needs analysis, ADA and paving studies, and master plan study.
$125,000 for settlements of liability claims.
• $34,143 for 5 additional police officer positions
11
• $28,000 for Laserfiche software.
• $26,404 creation of new records coordinator position.
General Fund revenue increases totaling $54,989 were due to the receipt of a community
development grant which was awarded after the beginning of the fiscal year as well as the
recognizing revenue received from Federal and State confiscation programs.
Considering the above noted increases in General Fund budgeted appropriations, actual
expenditures were less than budgeted by $1,439,474. In addition, actual revenues exceeded
the budget by $1,183,603.
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 7 on
pages 48 - 49 of this report.
Land
Buildings
Infrastructure
Machinery and Equipment
Intangibles
Construction in Progress
Total
Capital Assets
(net of depreciation)
Governmental Activities Business -type Activities Total
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
$ 25,727,548
$ 25,727,548
$ 1,022,590
$ 1,861,820
$ 26,750,138
$ 27,589,368
14,731,149
14,653,642
-
-
14,731,149
14,653,642
9,942,940
5,590,777
64,140,411
62,476,771
74,083,351
68,067,548
2,999,130
2,191,359
2,968,262
2,444,267
5,967,392
4,635,626
261,635
26,456
187,004
109,620
448,639
136,076
1,239,197
3,967,409
1,482,397
4,148,655
2,721,594
8,116,064
$54,901,599
$52,157,191
$69,800,664
$71,041,133
$124,702,263
$123,198,324
The City of Clermont's investment in capital assets for its governmental and business -type
activities as of September 30, 2015, amounts to $124,702,263 (net of accumulated
depreciation). This investment in capital assets includes land, buildings,
improvements/infrastructure, machinery and equipment and intangibles. The total change in the
City's investment in capital assets for the current fiscal year was $1,503,939. Major capital
asset events during the current fiscal year included the following:
• Completion of the Lake Hiawatha Preserve development — $1,376,369 was added and
prior years Construction in Progress in the amount of $2,993,946 was moved to
Infrastructure for a total project cost of $4,370,315.
• Completion of the Rowing Facility — $644,000 was added and prior years Construction in
Progress in the amount of $197,384 was moved to Buildings for a total project cost of
$841,384.
• Purchase of twenty police vehicles for a total of $668,118.
• Purchase of a fire boat for $119,875.
12
• Completion of the East West Water Connector - $125,685 was added and prior years
Construction in Progress in the amount of $1,289,779, for the total project cost of
$1,415,464 was moved Infrastructure/Improvements.
• Completion of the Reclaimed Water Storage Tank - prior years Construction in Progress
in the amount of $1,512,242 was moved to Infrastructure/Improvements.
• Completion of the 12th Street and Lakeshore Stormwater Improvements - $544,529 was
added and prior years Construction in Progress in the amount of $33,522, for the total
project cost of $578,051 was moved Infrastructure/Improvements.
• Purchase of 2 sanitation vehicles for a total of $584,431.
• Construction in progress includes construction of the Police Headquarters, Fire Station
No. 4, Master Plan, 12" Water Main Loop, Environmental Services Administration
Building, Lift Station Improvement, Reclaimed System Improvements, and the CDBG
Stormwater Project.
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 8 on pages 50 - 52 of this report.
Revenue bonds payable
Notes payable
Total
Outstanding Debt
Governmental Activities Business-tvpe Activities Total
2014-15 2013-14
2014-15 2013-14
2014-15 2013-14
$ - $ -
7,157,670 8,041,401
$ 13,685,000 $ 14,315,000
- -
$ 13,685,000 $ 14,315,000
7,157,670 8,041,401
$ 7,157,670 $ 8,041,401
$ 13,685,000 $ 14,315,000
$ 20,842,670 $ 22,356,401
At the end of the current fiscal year, the City of Clermont had total debt outstanding of
$20,842,670, which includes revenue bonds payable and notes payable.
Economic Factors and Next Year's Budgets and Rates
• The annual unemployment rate for Lake County in 2015 was 5.2%, which is a decrease
of 1.1 % from 2014. Clermont's unemployment rate was below the County average for
the 6th year in a row at 4.8% for 2015. This is lower than both the state's average of
5.4% and the national average of 4.9%.
• The taxable value of commercial and residential property increased 11.72% from fiscal
year 2013-14 to fiscal year 2014-15 due to increasing home values and new
construction.
• Population increased 1.9% from 31,745 in 2014 to 32,348 in 2015.
As of September 30, 2015, the General Fund unassigned fund balance was $7,013,550. In
addition, the City appropriated $304,600 for spending in the 2015-16 fiscal year budget. The
property tax rate included for the General Fund for the 2015-16 fiscal year budget increased by
.4771 mills to 4.2061, the City's second increase since 2001. Property tax revenue is projected
to be $1,747,781 higher in fiscal year 2015-16 due to the millage increase and the increase in
13
the assessed values. This increase will help the City continue to meet the level of service
required as well as implementing new initiatives.
No utility rate adjustments were proposed for the 2015-16 fiscal year with the exception of the
sewer rate structure. The sewer rates increased 1.57% on October 1, 2015 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 Finance Director, City of Clermont, P.O.
Box 120219, Clermont, Florida 34712.
14
BASIC FI9VANCIAL STAgVWE7VTS
cLEIRlv(ONT
Choice of Champions'
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET POSITION
September 30, 2015
The accompanying Notes to Financial Statements are an integral part of this statement
15
Primary Government
Governmental
Business -type
Activities
Activities
Total
Assets:
Cash and cash equivalents
$ 13,286,990
$ 24,263,913
$ 37,550,903
Investments
4,239,143
6,694,036
10,933,179
Receivables, net
1,125,928
1,220,836
2,346,764
Inventories
20,474
311,005
331,479
Due from other governments
1,396,873
135,481
1,532,354
Internal balances
(1,076,989)
1,076,989
-
Prepaid costs
1,662,128
134,280
1,796,408
Restricted assets:
Cash and cash equivalents
-
1,533,860
1,533,860
Investments
-
6,750,871
6,750,871
Interest receivable
7,413
28,892
36,305
Net pension asset
5,642,968
-
5,642,968
Capital assets not being depreciated
26,966,745
2,504,987
29,471,732
Capital assets being depreciated, net of
accumulated depreciation
27,934,854
67,295,677
95,230,531
Total assets
81, 206, 527
111,950, 827
193,157, 354
Deferred Outflows of Resources:
Deferred outflow of pension earnings
1,682,840
-
1,682,840
Deferred charge on refunding
-
513,138
513,138
Total deferred outflows of resources
1,682,840
513,138
2,195,978
Liabilities:
Accounts payable and accrued expenses
2,137,965
1,540,734
3,678,699
Due to other governmental agencies
11,893
-
11,893
Unearned revenue
51,575
-
51,575
Noncurrent liabilities:
Due within one year
1,024,729
681,554
1,706,283
Due in more than one year
10,679,119
14,577,626
25,256,745
Total liabilities
13,905,281
16,799,914
30,705,195
Deferred Inflows of Resources:
Deferred inflow of pension earnings
216,818
-
216,818
Net Position:
Net investment in capital assets
47,718,124
56,585,567
104,303,691
Restricted for:
Capital Improvements
-
12,135,320
12,135,320
Community redevelopment
552,606
-
552,606
Public safety
3,803,007
-
3,803,007
Culture and recreation
234,609
-
234,609
Infrastructure
2,764,060
-
2,764,060
Debt service
872,649
-
872,649
Building services
88,965
-
88,965
Perpetual care:
Nonexpendable
1,083,860
-
1,083,860
Unrestricted
11,649,388
26,943,164
38,592,552
Total net position
$ 68,767,268
$ 95,664,051
$ 164,431,319
The accompanying Notes to Financial Statements are an integral part of this statement
15
Functions/Programs:
Governmental Activities:
General government
Public safety
Physical environment
Transportation/public works
Economic environment
Culture and recreation
Interest on long-term debt
Total governmental activities
Business -type Activities
Water
Sewer
Sanitation
Stormwater
Total business -type activities
Total primary government
CITY OF CLERMONT. FLORIDA
STATEMENT OF ACTIVITIES
Year Ended September 30, 2015
Program Revenue
Operating Grants Capital Grants
Charges for and and
Expenses Services Contributions Contributions
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental Business -type
Activities Activities Total
$ 3,847,784 $
2,356,395 $
- $ - $ (1,491,389) $
- $ (1,491,389)
14,325,704
1,683,979
1,220,299 - (11,421,426)
- (11,421,426)
453,027
-
- - (453,027)
- (453,027)
2,094,223
-
377,513 - (1,716,710)
- (1,716,710)
566,746
-
- - (566,746)
- (566,746)
4,018,441
1,317,331
- 498,253 (2,202,857)
- (2,202,857)
193,229
-
- - (193,229)
- (193,229)
25,499,154
5,357,705
1,597,812 498,253 (18,045,384)
- (18,045,384)
4,822,683
5,725,946
275,751 758,495
- 1,937,509
1,937,509
6,570,897
5,809,151
- 2,349,752
- 1,588,006
1,588,006
3,132,989
2,916,519
- -
- (216,470)
(216,470)
1,079,920
905,287
- 110,961
- (63,672)
(63,672)
15,606,489
15,356,903
275,751 3,219,208
- 3,245,373
3,245,373
$ 41,105,643
$ 20,714,608 $
1,873,563 $ 3,717,461
(18,045,384) 3,245,373
(14,800,011)
General Revenues:
Property taxes
Business taxes
Franchise fees
Utility taxes
Intergovernmental - unrestricted
Unrestricted investment earnings
Miscellaneous
Special Item - Loss on Sale of Capital Assets
Transfers
Total general revenues and transfers
Change in net position
7,192,996
-
7,192,996
129,620
-
129,620
2,502,153
-
2,502,153
2,952,785
-
2,952,785
6,644,875
-
6,644,875
134,608
272,353
406,961
420,275
-
420,275
-
(1,248,017)
(1,248,017)
556,983
(556,983)
-
20,534,295
(1,532,647)
19,001,648
2,488,911
1,712,726
4,201,637
Net Position - beginning, as restated 66,278,357 93,951,325 160,229,682
Net Position - ending $ 68,767,268 $ 95,664,051 $ 164,431,319
The accompanying Notes to Financial Statements are an integral part of this statement.
16
CITY OF CLERMONT, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2015
Liabilities:
Nonspendable 1,299,870 - 380,347 - 1,086,245
2,766,462
Community
Other
Total
331,123 $ 111,386 $ 27,990 $ 1,603,909
Payable to other governments
Capital
Infrastructure
Redevelopment
Governmental
Governmental
68,030
General
Projects
Special Revenue
Special Revenue
Funds
Funds
Assets:
Other long-term assets are not available to pay for current period expenditures and, therefore are deferred in the funds.
380,705
Total liabilities
2,365,471
227,269
331,123 111,386 27,990 3,063,239
Cash and cash equivalents
$ 3,569,667 $
27,269
$ 2,526,739
$ 663,992
$ 5,834,432
$ 12,622,099
Investments
4,239,143
-
-
-
-
4,239,143
Receivables, net
1,132,404
-
-
-
65
1,132,469
Inventories, at cost
20,474
-
-
-
-
20,474
Due from other governments
1,008,776
200,000
188,097
-
-
1,396,873
Due from otherfunds
68,030
-
-
-
-
68,030
Prepaid costs
1,279,396
380,347
2,385
1,662,128
Total assets
$ 11,317,890 $
227,269
$ 3,095,183
$ 663,992
$ 5,836,882
$ 21,141,216
Liabilities:
Nonspendable 1,299,870 - 380,347 - 1,086,245
2,766,462
Accounts payable
$ 974,171 $
159,239 $
331,123 $ 111,386 $ 27,990 $ 1,603,909
Payable to other governments
11,893
-
- - - 11,893
Due to otherfunds
947,127
68,030
- - - 1,015,157
Unearned revenue
51,575
-
- - - 51,575
Accrued liabilities
380,705
Other long-term assets are not available to pay for current period expenditures and, therefore are deferred in the funds.
380,705
Total liabilities
2,365,471
227,269
331,123 111,386 27,990 3,063,239
Deferred Inflows of Resources:
Unavailable revenue - liens, forfeitures and
rents 87,470 87,470
Total deferred inflows of resou rces 87,470 87,470
Fund Balances:
Nonspendable 1,299,870 - 380,347 - 1,086,245
2,766,462
Restricted 246,929 - 2,383,713 552,606 4,722,647
7,905,895
Assigned 304,600 - - - -
304,600
Unassigned 7,013,550
7,013,550
Total fund balances 8,864,949 2,764,060 552,606 5,808,892
17,990,507
Total liabilities, deferred inflows
of resources, and fund balances $ 11,317,890 $ 227,269 $ 3,095,183 $ 663,992 $ 5,836,882
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and are not reported in the funds.
54,901,599
Accrued interest payable is not due in the current period and therefore is not reported in the funds.
(63,208)
Other long-term assets are not available to pay for current period expenditures and, therefore are deferred in the funds.
87,470
Deferred inflows and outflows of resources related to pension earnings are not recognized in governmental funds, however, they are
recorded in net position under full accrual accounting.
1,466,022
Net pension assets are not current financial resources and therefore are not reported in the funds
5,642,968
The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are included in the
governmental activities of the Statement of Net Position.
445,758
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.
(11,703,848)
Net Position of Governmental Activities in the Statement of Net Position
$ 68,767,268
The accompanying Notes to Financial Staten ents are an integral part of this statement.
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Revenues:
Taxes
Franchise fees
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Impact fees/special assessments
Investment earnings
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Debt Service:
Principal retirement
Interest and fiscal charges
Capital Outlay:
Public safety
Culture and recreation
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total oth er fin ancing sources (uses)
Net Change in Fund Balances
Fund Balances -beginning
Fund Balances -ending
Year Ended September 30, 201
Community Other Total
Infrastructure Redevelopment Governmental Governmental
General Capital Projects Special Revenue Special Revenue Funds Funds
$ 10,075,999 $ - $ - $
199,402 $ -
$ 10,275,401
2,502,153 - -
- -
2,502,153
144,513 - -
- 643,795
788,308
5,517,892 498,253 2,755,364
- -
8,771,509
1,206,162 - -
- 106,057
1,312,219
757,007 - -
- -
757,007
- - -
- 1,857,581
1,857,581
72,977 - 17,387
5,082 35,582
131,028
964,809
82,226
1,047,035
21,241,512 498,253 2,772,751
204,484 2,725,241
27,442,241
3,543,040
- 56,484
- -
3,599,524
13,075,595
- 727,419
- 1,040,946
14,843,960
612,501
- 131,653
- -
744,154
1,172,386
- 462,638
- -
1,635,024
138,247
- -
425,477 -
563,724
3,315,105
21,895 343,296
- 45,000
3,725,296
-
- -
- 883,731
883,731
-
- -
- 198,438
198,438
- 236,976 - - - 236,976
2,458,455 2,458,455
21,856,874 2,717,326 1,721,490 425,477 2,168,115 28,889,282
(615,362) (2,219,073) 1,051,261 (220,993) 557,126 (1,447,041)
540,695
(296,794)
2,219,073 -
(960,179)
- 1,097,579
(2,066,517)
3,857,347
(3,323,490)
243,901
2,219,073 (960,179)
(968,938)
533,857
(371,461)
9,236,410
- 91,082
2,672,978
(220,993) (411,812)
773,599 6,220,704
(913,184)
18,903,691
$ 8,864,949 $
$ 2,764,060 $
552,606 $ 5,808,892
$ 17,990,507
The accompanying Notes to Financial Stat gments are an integral part of this statement.
CITY OF CLERMONT. FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
Year Ended September 30, 2015
Net Change in Fund Balances - total governmental funds: $ (913,184)
Amounts reported for Governmental Activities in the Statement of Activities are
different because:
Governmental funds report outlays for capital assets as expenditures because such
outlays use current financial resources. In contrast, the Statement of Activities
reports only a portion of the outlay as expense. The outlay is allocated over the
assets' estimated useful lives as depreciation expense for the period. 2,721,282
Net transfers of capital assets from proprietary funds 23,126
Governmental funds do not present revenues that are not available to pay current
obligations. In contrast, such revenues are reported in the Statement of Activities
when earned. 14,261
Revenue reported in the funds must be eliminated from the statement of activities
since revenue was recognized in a prior year. (29,000)
Cash pension contributions reported in the funds were more than the calculated
pension expense on the statement of activities, and therefore increased net position 583,965
Governmental funds report note proceeds as current financial resources. In contrast,
the Statement of Activities treats such issuance of debt as a liability. Governmental
funds report repayment of note principal as an expenditure, In contrast, the
Statement of Activities treats such repayments as a reduction in long-term liabilities.
This is the amount by which repayments exceeded proceeds. 883,731
Some expenses reported in the statement of activities do not require the use of
current financial resources and these are not reported as expenditures in
governmental funds. (820,973)
Internal service funds are used by management to charge the costs of certain
activities, such as health insurance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities. 25,703
Change in Net Position of Governmental Activities $ 2,488,911
The accompanying Notes to Financial Statements are an integral part of this statement.
19
CITY OF CLERMONT, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended September 30, 2015
The accompanying Notes to Financial Statements are an integral part of this statement.
20
Actual
Variance with
Amounts,
FinalBudget-
Budgetary
Positive
Budgeted Amounts
Basis
(Negative)
Original
Final
Revenues:
Taxes
$ 9,721,469
$ 9,721,469
$ 10,075,999
$ 354,530
Franchise fees
2,296,900
2,296,900
2,502,153
205,253
Licenses and permits
125,660
125,660
144,513
18,853
Intergovernmental revenues
5,245,945
5,270,945
5,517,892
246,947
Charges for services
1,131,995
1,131,995
1,206,162
74,167
Fines and forfeitures
442,800
472,789
757,007
284,218
Investment earnings
40,000
40,000
72,977
32,977
Miscellaneous
998,151
998,151
964,809
(33,342)
Total revenues
20,002,920
20,057,909
21,241,512
1,183,603
Expenditures:
Current:
General government:
City council
25,959
30,549
30,482
67
City clerk
278,031
281,477
262,821
18,656
City manager
437,445
437,445
428,010
9,435
Finance
850,426
822,196
822,121
75
Legal services
100,500
100,500
96,101
4,399
Planning&zoning
543,010
592,601
591,867
734
Information technology
586,085
618,159
562,317
55,842
Human resources
329,385
349,582
330,826
18,756
Purchasing
-
70,837
69,122
1,715
Other general government
193,462
348,360
349,373
(1,013)
3,344,303
3,651,706
3,543,040
108,666
Public safety:
Law enforcement
6,963,720
7,279,668
7,223,453
56,215
Fire control
7,146,268
7,080,839
5,852,142
1,228,697
14,109,988
14,360, 507
13, 075, 595
1,284,912
Physical environment
554,326
594,326
612,501
(18,175)
Transportation
1,150,707
1,236,757
1,172,386
64,371
Economic environment
187,269
187,269
138,247
49,022
Culture and recreation
Culture and recreation
2,151,039
2,188,209
2,010,303
177,906
Events
174,712
208,312
227,571
(19,259)
Arts and reccenter
805,573
869,262
1,077,231
(207,969)
3,131,324
3,265,783
3,315,105
(49,322)
Total expenditures
22,477,917
23,296,348
21,856,874
1,439,474
The accompanying Notes to Financial Statements are an integral part of this statement.
20
CITY OF CLERMONT, FLORIDA
BUDGET AND ACTUAL (CONTINUED)
Year Ended September 30, 2015
Net Change in Fund Balance
Fund Balance -beginning
Fund Balance -ending
(1,201,989) (2,129,101) (371,461) 1,757,640
9,236,410 9,236,410 9,236,410 -
$ 8,034,421 $ 7,107,309 $ 8,864,949 $ 1,757,640
The accompanying Notes to Financial Statements are an integral part of this statement.
21
Actual
Variance with
Amounts,
FinalBudget-
Budgetary
Positive
Budgeted Amounts
Basis
(Negative)
Original
Final
Excess (Deficiency) of Revenues
Over Expenditures
(2,474,997)
(3,238,439)
(615,362)
2,623,077
Other Financing Sources (Uses):
Loan Proceeds
1,250,000
1,092,127
-
(1,092,127)
Transfers In
459,700
459,700
540,695
80,995
Transfers Out
(436,692)
(442,489)
(296,794)
145,695
Total other financing sources(uses)
1,273,008
1,109,338
243,901
(865,437)
Net Change in Fund Balance
Fund Balance -beginning
Fund Balance -ending
(1,201,989) (2,129,101) (371,461) 1,757,640
9,236,410 9,236,410 9,236,410 -
$ 8,034,421 $ 7,107,309 $ 8,864,949 $ 1,757,640
The accompanying Notes to Financial Statements are an integral part of this statement.
21
CITY OF CLERMONT, FLORIDA
INFRASTRUCTURE SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended September 30, 2015
Expenditures:
Current:
General government 70,000 70,000 56,484 13,516
Public safety
Police
450,920
738,635
674,023
Variance with
Fire control
50,000
430,347
53,396
Final Budget -
343,296
500,920
1,168,982
727,419
Positive
Transportation:
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
929,919
462,638
Revenues:
Intergovernmental revenues
$ 2,600,000 $
2,600,000
$ 2,755,364
$ 155,364
Investment earnings
12,000
12,000
17,387
5,387
Miscellaneous
-
-
-
-
Totalrevenues
2,612,000
2,612,000
2,772,751
160,751
Expenditures:
Current:
General government 70,000 70,000 56,484 13,516
Public safety
Police
450,920
738,635
674,023
64,612
Fire control
50,000
430,347
53,396
376,951
343,296
500,920
1,168,982
727,419
441,563
Transportation:
Roads & streets
759,500
929,919
462,638
467,281
Physical Environment 191,500 191,500 131,653 59,847
Culture and recreation
Recreation programs 269,500
327,786
313,310
14,476
Arts and rec center 566,500
546,500
29,986
516,514
836,000
874,286
343,296
530,990
Total expenditures 2,357,920
3,234,687
1,721,490
1,513,197
Excess (Deficiency) of Revenues
Over Expenditures 254,080 (622,687) 1,051,261 1,673,948
Other Financing Uses:
Transfers out (945,798) (1,203,990) (960,179) 243,811
Total other financing uses (945,798) (1,203,990) (960,179) 243,811
Net Change in Fund Balances (691,718) (1,826,677) 91,082 1,917,759
Fund Balances - beginning 2,672,978 2,672,978 2,672,978 -
FundBalances- ending $ 1,981,260 $ 846,301 $ 2,764,060 $ 1,917,759
The accompanying Notes to Financial Statements are an integral part of this statement.
22
CITY OF CLERMONT, FLORIDA
COMMUNITY REDEVELOPMENT SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Revenues:
Taxes
Investment earnings
Total revenues
Expenditures:
Economic environment:
Economic development
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Year Ended September 30, 2015
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 204,392 $
204,392 $
199,402 $
(4,990)
5,100
5,100
5,082
(18)
209,492
209,492
204,484
(5,008)
489,222 592,972 425,477 167,495
489,222 592,972 425,477 167,495
(279,730) (383,480) (220,993) 162,487
(279,730) (383,480) (220,993) 162,487
773,599 773,599 773,599 -
$ 493,869 $ 390,119 $ 552,606 $ 162,487
The accompanying Notes to Financial Statements are an integral part of this statement.
23
Assets:
Current assets:
Cash and cash equivalents
I nvestments
Restricted cash and cash equivalents
Accounts receivable, net
Due from other governments
Inventories
Prepaid expenses
Total current assets
Noncurrent assets:
Restricted investments
Advances to other funds
Interest receivable
Capital assets:
Land, buildings and equipment
Construction in progress
Less accumulated depreciation
Total capital assets (net of
accumulated depreciation)
Total non-current assets
Total assets
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2015
Business -type Activities -Enterprise Funds
Water Sewer Sanitation Stormwater Total
Governmental
Activities -
Internal Service
Fund
$ 8,680,042
$ 11,192, 894
$ 3,234,287
$ 1,156, 690
$ 24, 263, 913 $
664,891
6,694,036
-
-
-
6,694,036
-
830,036
703,824
-
-
1,533,860
-
396,609
489,213
255,496
79,518
1,220,836
872
129,806
-
-
5,675
135,481
-
273,781
36,464
-
760
311,005
-
61,485
50,763
11,986
10,046
134,280
-
17, 065, 795
12, 473,158
3,501,769
1,252,689
34, 293, 411
665,763
-
6,750,871
-
-
6,750,871
-
-
-
947,127
-
947,127
-
14,316
14,576
-
-
28,892
-
33,948,192
61,657,809
3,953,716
5,693,896
105,253,613
-
252,894
1,109,177
-
120,326
1,482,397
-
(10,546,166)
(21,334,092)
(2,679,138)
(2,375,950)
(36,935,346)
-
23,654,920
41,432,894
1,274,578
3,438,272
69,800,664
-
23, 669, 236
48,198, 341
2,221,705
3,438,272
77, 527, 554
-
40, 735, 031
60, 671, 499
5,723,474
4,690,961
111, 820, 965
665,763
Deferred Outflows of Resources:
Deferred charge on refunding 180,240 332,898 - - 513,138
Total deferred outflows of resources 180,240 332,898 - - 513,138
The accompanying Notes to Financial Statements are an integral part of this statement
24
Liabilities:
Current liabilities:
Accounts payable
Salaries payable
Accrued interest payable
Compensated absences
Customer deposits payable
Revenue bonds payable -current
Total current liabilities
Noncurrent liabilities:
Compensated absences
Other post employment benefits
Revenue bonds payable
Total non-current liabilities
Total liabilities
Net Position:
Net investment in capital assets
Restricted for capital improvements
Unrestricted
Total net position
195,876
151,223
446,954
20,684
814,737
90,143
41,698
38,686
24,071
9,516
113,971
-
64,041
113,850
-
-
177,891
-
14,494
10,368
4,677
2,015
31,554
-
434,135
-
-
-
434,135
-
234,000
416,000
-
-
650,000
-
984,244
730,127
475,702
32,215
2,222,288
90,143
130,446
93,315
42,094
18,137
283,992
-
477,765
365,453
276,807
95,374
1,215,399
4,708,164
8,370,071
-
-
13, 078, 235
-
5,316,375
8,828,839
318,901
113,511
14,577,626
-
6,300,619
9,558,966
794,603
145,726
16,799,914
90,143
18,892,996
32,979,721
1,274,578
3,438,272
56,585,567
-
1,907,224
10, 228, 096
-
-
12,135, 320
-
13,814,432
8,237,614
3,654,293
1,106,963
26,813,302
575,620
$ 34,614,652
$ 51,445,431
$ 4,928,871
$ 4,545,235
95,534,189 $
575,620
The assets and liabilities of certain internal service funds are not included in the fund financial
statement, but are included in the Business Activities of the Statement of Net Position.
Total Net Position per Government -Wide Financial Statements
129,862
a a0,004,uoi
The accompanying Notes to Financial Statements are an integral part of this statement
25
cLEIRlv(ONT
Choice of Champions'
26
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expenses:
Personnel services
Utilities
Dump fees
Administrative services
Repairs and maintenance
Depreciation and amortization
Professional services
Insurance claims and expenses
Other supplies and expenses
Total operating expenses
Operating income (loss)
Nonoperating Revenues (Expenses):
Investment income
Grant Revenue
Interest expense
Gain (loss) on disposal of capital assets
Total nonoperating revenue (expenses)
Income (loss) before contributions and transfers
Capital contributions
Transfers in
Transfers out
Special item - loss on sale of fixed assets
Change in net position
Year Ended September 30, 2015
Governmental
Business -type Activities -Enterprise Funds Activities -
Internal Service
Water Sewer Sanitation Stormwater Total Fund
$ 5,509,877 $ 5,795,770 $ 2,912,318 $ 903,444 $ 15,121,409 $ 3,668,054
216,069 13,381 4,201 1,843 235,494 235,917
5,725,946 5,809,151 2,916,519 905,287 15,356,903 3,903,971
1,683,305
1,481,898
944,114
420,915
4,530,232
-
425,098
767,964
1,160
833
1,195,055
-
-
153,750
456,207
23,506
633,463
-
326,729
343,617
281,636
56,520
1,008,502
-
221,302
268,959
166,647
58,781
715,689
-
1,033,421
2,376,229
401,265
349,122
4,160,037
-
430,519
305,421
40,877
96,518
873,335
2,400
122,347
141,018
59,404
17,028
339,797
3,872,477
377,843
369,461
783,241
57,267
1,587,812
-
4,620,564
6,208,317
3,134,551
1,080,490
15,043,922
3,874,877
1,105,382
(399,166)
(218,032)
(175,203)
312,981
29,094
115,027
117,777
29,989
9,560
272,353
275,751
-
-
-
275,751
(204,735)
(364,803)
-
-
(569,538)
22,315
-
985
-
23,300
208,358
(247,026)
30,974
9,560
1,866
1,313,740
(646,192)
(187,058)
(165,643)
314,847
758,495
2,349,752
-
110,961
3,219,208
18,583
-
-
-
18,583
(545,084)
(11,227)
-
(19,255)
(575,566)
-
(1,271,317)
-
-
(1,271,317)
1,545,734
421,016
(187,058)
(73,937)
1,705,755
Total Net Position - Beginning 33,068,918 51,024,415 5,115,929 4,619,172
Total Net Position - Ending $ 34,614,652 $ 51,445,431 $ 4,928,871 $ 4,545,235
Change in Net Position, per above 1,705,755
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense)
of certain internal service funds is reported with Business Activities. 6,971
Change in Business -Type Activities in Net Position per Government -Wide Financial Statements
$ 1,712,726
The accompanying Notes to Financial Statements are an integral part of this statement.
27
3,580
3,580
32,674
32,674
542,946
$ 575,620
Cash Flows from Operating Activities:
Receipts from customers
Receipts from internal services provided
Payments to suppliers
Payments to employees
Net cash provided (used) by operating
activities
Cash Flows from Non -Capital
Financing Activities:
Due from other funds
Operating grants
Transfers in
Transfers out
Net cash provided (used) by non -capital
financing activities
Cash Flows from Capital and Related
Financing Activities:
Acquisition of capital assets
Sale of capital assets
Interest paid on long-term debt
Principal paid on debt
Capital Grants
Fees and assessments received
Net cash provided (used) by capital and
related financing activities
CITY OF CLERMONT. FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended September 30, 2015
Governmental
Activities -
Business -Type Activities -Enterprise Funds Internal Service
Water Sewer Sanitation Stormwater Total Fund
$ 5,892,507 $ 5,855,803 $ 2,922,426 $ 902,349 $ 15,573,085 $ -
- - - - - 3,903,099
(1,986,503) (2,403,493) (1,466,478) (312,176) (6,168,650) (4,070,832)
(1,606,807) (1,414,766) (898,227) (398,713) (4,318,513) -
2,299,197 2,037,544 557,721 191,460 5,085,922 (167,733)
-
-
(947,127)
- (947,127)
145,945
145,945
(533,857)
-
-
- (533,857) -
(387,912)
-
(947,127)
- (1,335,039) -
(1,255,271)
(1,185,973)
(677,495)
(951,686) (4,070,425) -
22,315
(143,586)
985
- (120,286) -
(196,203)
(348,820)
-
- (545,023) -
(226,800)
(403,200)
(630,000) -
-
-
-
105,286 105,286 -
758,495
2,349,752
-
- 3,108,247 -
(897,464) 268,173 (676,510) (846,400) (2,152,201)
The accompanying Notes to Financial Statements are an integral part of these statements.
28
Cash Flows from Investing Activities:
Sale (Purchase) of investments
Investment income
Net cash provided by investing activities
Net Increase(Decrease)in Cash and
Cash Equivalents
Cash and Cash Equivalents - beginning
Cash and Cash Equivalents - end
Classified As:
Cash and cash equivalents
Restricted cash and cash equivalents
Total
Reconciliation of Operating Income
(Loss)to Net Cash Provided
By Operating Activities
Operating income (loss)
Adjustments Not Affecting Cash:
Depreciation and amortization
Change in Assets and Liabilities:
Decrease (Increase) in accts receivable
Increase in customer deposits
Decrease in prepaid costs
Decrease (Increase) in inventory
Increase (Decrease) in accounts payable
Increase in accrued liabilities
Total adjustments
Net Cash Provided (Used) by Operating
Activities
524,877 341,374 - - 866,251 -
80,961 99,704 29,989 9,560 220,214 3,580
605,838 441,078 29,989 9,560 1,086,465 3,580
1,619,659 2,746,795 (1,035,927) (645,380) 2,685,147 (164,153)
7,890,419 9,149,923 4,270,214 1,802,070 23,112,626 829,044
$ 9,510,078 $ 11,896,718 $ 3,234,287 $ 1,156,690 $ 25,797,773 $ 664,891
$ 8,680,042 $ 11,192,894 $ 3,234,287 $ 1,156,690 $ 24,263,913 $ 664,891
830,036 703,824 - - 1,533,860 -
$ 9,510,078 $ 11,896,718 $ 3,234,287 $ 1,156,690 $ 25,797,773 $ 664,891
$ 1,105,382 $ (399,166) $ (218,032) $ (175,203) $ 312,981 $ 29,094
1,033,421 2,376,229 401,265 349,122 4,160,037
169,021
46,652
5,907
(2,938)
218,642
(872)
(2,460)
-
-
-
(2,460)
-
(37,349)
(44,655)
(11,986)
(10,046)
(104,036)
600
(65,396)
(5,402)
-
561
(70,237)
-
20,080
(3,246)
334,680
7,762
359,276
(196,555)
76,498
67,132
45,887
22,202
211,719
-
1,193,815
2,436,710
775,753
366,663
4,772,941
(196,827)
$ 2,299,197 $ 2,037,544 $ 557,721 $ 191,460 $ 5,085,922 $ (167,733)
Noncash Investing, Capital,
and Financing Activities:
Increase (Decrease) in Fair Value of Investments $ 28,211 $ 13,855 $ - $ - $ 42,066 $
Net transfers of capital assets $ 7,356 $ (11,227) $ - $ (19,255) $ (23,126) $ -
The accompanying Notes to Financial Statements are an integral part of these statements.
29
CITY OF CLERMONT. FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
September 30, 2015
Total assets 31,363,742
Liabilities:
Refunds payable and other 597,800
Total liabilities 597,800
Net Position Held in Trust
for Pension Benefits $ 30,765,942
The accompanying Notes to Financial Statements are an integral part of this statement.
30
Total Employee
Pension Funds
Assets:
Cash and cash equivalents
$ 194,740
Receivables:
Due from state
421,778
Total receivables
421,778
1 nvestments:
U.S. Government & other debt securities
9,688,348
Equities
21, 058, 876
Total investments
30,747,224
Total assets 31,363,742
Liabilities:
Refunds payable and other 597,800
Total liabilities 597,800
Net Position Held in Trust
for Pension Benefits $ 30,765,942
The accompanying Notes to Financial Statements are an integral part of this statement.
30
CITY OF CLERMONT. FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
Year Ended September 30, 2015
Investment earnings:
Net decrease in fair value of investments (43,104)
Total net investment earnings (43,104)
Total additions 1,824,914
Deductions:
Total Employee
Benefits/distributions
Pension Funds
Additions:
131,839
Contributions:
693,699
Employer
$ 1,205,420
Plan members
240,820
State
421,778
Total contributions
1,868,018
Investment earnings:
Net decrease in fair value of investments (43,104)
Total net investment earnings (43,104)
Total additions 1,824,914
Deductions:
Benefits/distributions
561,860
Administrative
131,839
Total deductions
693,699
Change in Net Position
1,131,215
Net Position - beginning
29,634,727
Net Position - ending
$ 30,765,942
The accompanying Notes to Financial Statements are an integral part of this statement
31
cLEIRlv(ONT
Choice of Champions'
32
NoM To FINANCIAL STAglWE Z
cLEIRlv(ONT
Choice of Champions'
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 1 - Summary of Significant Accounting Policies:
A. Reporting Entity
The City of Clermont, Florida (the City) is a political subdivision of the State of Florida located in
Lake County. The City of Clermont was incorporated under State law in December 1916 and
operates under the council-manager form of government under its charter adopted pursuant to
H.B. 2223, Ch.67-1217 Special Acts, of the State of Florida. The legislative branch of the City
is composed of a Mayor and four (4) members elected Council. The City Council is
responsible for the establishment and adoption of policy. The execution of such policy is the
responsibility of the Council appointed City Manager.
In evaluating how to define the government, for financial reporting purposes, the City has
considered all potential component units. The definition of the reporting entity is based
primarily on the notion of financial accountability. A primary government is financially
accountable for the organizations that make up its legal entity. It is also financially accountable
for legally separate organizations if its officials appoint a voting majority of an organization's
governing body, and either it is able to impose its will on that organization or there is a potential
for the organization to provide specific financial benefits to, or to impose specific financial
burdens on, the primary government. A primary government may also be financially
accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects or activities of, or the level of services performed or provided
by, the organization. A financial benefit or burden relationship exists if the primary government
(a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed
the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is
obligated in some manner for the debt of the organization. In applying the above criteria, the
City has one blended component unit as follows:
The City of Clermont Community Redevelopment Fund:
The City of Clermont created the Downtown Redevelopment Agency in May of 1997. This is a
dependent taxing district established in accordance with Chapter 163, Part III, Florida Statutes.
Notification to affected taxing agency was done in compliance with Chapter 163.346, Part III,
Florida Statutes. The incremental annual increase in tax over the base years will be used to
fund projects designed to enhance and improve the described area. The City Council, being
the duly elected governmental body for the designated area, passed Resolution 97-950, which
established the City of Clermont as the Redevelopment Agency for the purpose of carrying out
the community redevelopment programs and plans within the area. Through Ordinance 359-M
the City established the Community Redevelopment Trust Fund to account for all transactions
generated by this special revenue fund. The City of Clermont Community Redevelopment
Fund is presented as a blended component unit. The CRA is governed by a board of seven -
the five members of the Clermont City Council and two individuals appointed by the City
Council.
BBi
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
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 position and the
statement of activities) report information on all of the nonfiduciary activities of the City. For
the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon enough thereafter
to pay liabilities of the current period. For this purpose, the government considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
34
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued):
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available
only when cash is received by the City.
The government reports the following funds:
Major Governmental Funds
The General Fund is the government's primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
Capital Projects Fund accounts for financial resources segregated for the acquisition
or construction of major capital facilities.
Infrastructure Special Revenue Fund accounts 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.
Nonmaior Governmental Fund Types
Special Revenue Funds account for the proceeds of specific revenue sources that
are legally restricted or committed to expenditures for specified purposes other than
debt service or capital projects.
Debt Service Fund is used to account for the accumulation of resources for the
payment of principal and interest on certain long-term debt.
Cemetery Perpetual Care accounts for activities of the City relative to cemetery
maintenance at specified locations. Fund resources are restricted. Only earnings on
invested resources may be used to support these activities.
K1y
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued):
Major Proprietary Funds
Water Fund is used to account for the operations of the City's water system, which is
financed in a manner similar to private business enterprises, where the costs,
including depreciation, of providing services to the general public on an ongoing
basis are financed primarily through user charges.
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.
Nonmaior Proprietary Funds
Stormwater Fund (Enterprise Fund) is used to account for the fiscal activities of the
City's stormwater drainage operation, as well as the funding and payment of related
debt.
Internal Service Fund is used to account for the costs of group insurance which are
charged to other departments on a cost reimbursement basis.
Fiduciary Funds
Pension Trust Funds account for activities of police officers, firefighters and general
employees retirement plans which accumulate resources for pension benefit
payments to qualified employees.
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.
BIc3
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
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, Deferred Outflows/Inflows and Net Position/Fund Balance:
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 noncurrent portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds."
KrA
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(Continued):
2. Receivables and Payables -(Continued)
Any residual balances outstanding between the governmental activities and
business -type activities are reported in the government -wide financial statements
as "internal balances".
Advances between funds, as reported in the fund financial statements, are offset
by a non -spendable fund balance in applicable governmental funds to indicate
that they are not available for appropriation and are not expendable available
financial resources.
All receivables are shown net of an allowance for 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. These are recorded as expenditures when consumed rather than
when purchased.
4. Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain
resources set aside for their repayment, are classified as restricted assets on the
balance sheet because they are maintained in separate accounts and their use is
limited by applicable bond covenants. Assets so designated are identified as
restricted assets on the balance sheet.
Kia
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(Continued):
5. Capital Assets
Capital assets, which include property, plant, equipment, intangible and
infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are
reported in the applicable governmental or business -type activities columns in
the government -wide financial statements. Capital assets are defined by the City
as assets with an initial, individual cost of $1,000 or more and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of
business -type activities is included as part of the capitalized value of the assets
constructed.
Capital assets of the City are depreciated using the straight line method over the
following estimated useful lives:
Assets Years
Buildings
10-50
Improvements
15-50
Infrastructure
30-50
Equipment & Machinery
3-15
Intangible Assets
3-15
6. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused
vacation and sick pay benefits. All vacation pay is accrued when incurred in the
government -wide and proprietary financial statements. A portion of sick pay is
accrued for employees with at least ten (10) years of service. A liability for these
amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements. For
governmental activities, compensated absences, net pension obligations, and net
other postemployment benefit obligations are generally liquidated by the general
fund.
1914
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(Continued):
7. Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the
fund financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities, business -type
activities, or proprietary fund type statement of net position. Bond premiums and
discounts 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.
In the fund financial statements, governmental fund types recognize bond
premiums and discounts 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.
8. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a
separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of
net position that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/expenditure) until then. The City has two items
that qualify for reporting in this category. The deferred charge on refunding and
deferred outflows of pension earnings reported in the government -wide
statement of net position and the statement of net position - proprietary funds. A
deferred charge on refunding results from the difference in the carrying value of
refunded debt and its reacquisition price. This amount is deferred and amortized
over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial
statement element, deferred inflows of resources, represents an acquisition of
net position that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The City has only one type of item,
which arises only under a modified accrual basis of accounting that qualifies for
reporting in this category. Accordingly, the item, unavailable revenue, is reported
only in the governmental funds balance sheet. The governmental funds report
unavailable revenues from several sources: liens, forfeitures and rental income.
These amounts are deferred and recognized as an inflow of sources in the period
that the amounts become available. The City also has deferred inflows of
pension earnings reported in the government -wide statement of net position.
em
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(Continued):
9. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted
(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to
calculate the amounts to report as restricted net position and unrestricted net
position in the government -wide and proprietary fund financial statements, a flow
assumption must be made about the order in which the resources are considered
to be applied. It is the City's policy to consider restricted net position to have
been depleted before unrestricted net position is applied.
10. Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted
and unrestricted resources (the total of committed, assigned, and unassigned
fund balance). In order to calculate the amounts to report as restricted,
committed, assigned, and unassigned fund balance in the governmental fund
financial statements a flow assumption must be made about the order in which
the resources are considered to be applied. It is the government's policy to
consider restricted fund balance to have been depleted before using any of the
components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund
balance is depleted first, followed by assigned fund balance. Unassigned fund
balance is applied last.
11. Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on
the nature of any limitations requiring the use of resources for specific purposes.
The City itself can establish limitations on the use of resources through either a
commitment (committed fund balance) or an assignment (assigned fund
balance).
The committed fund balance classification includes amounts that can be used
only for the specific purposes determined by a formal action of the City's highest
level of decision-making authority. The Council is the highest level of decision-
making authority for the City that can, by adoption of a resolution prior to the end
of the fiscal year, commit fund balance. Once adopted, the limitation imposed by
the resolution remains in place until a similar action is taken (the adoption of
another resolution) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by
the City for specific purposes but do not meet criteria to be classified as
committed. The Council has maintained authority to assign fund balance.
41
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(Continued):
11. Fund Balance Policies - (Continued)
The Council may also assign fund balance as it does when appropriating fund
balance to cover a gap between estimated revenue and appropriations in the
subsequent year's appropriated budget. Unlike commitments, assignments
generally only exist temporarily. In other words, an additional action does not
normally have to be taken for the removal of an assignment. Conversely, as
discussed above, an additional action is essential to either remove or revise a
commitment.
E. New GASB Statements Implemented:
In fiscal year 2015, the City implemented GASB Statement No. 68, Accounting and
Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement Date. These statements replace
the requirements of GASB Statement No. 27, Accounting for Pensions by State and
Local Government Employers, and Statement No. 50, Pension Disclosures, as they
relate to pension plans that are administered through trusts or equivalent arrangements
that meet certain criteria. GASB Statement No. 71 addresses the issue of the transition
provisions of GASB Statement No. 68. Beginning net position of governmental activities
has been restated and disclosed in Note 3.
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
govemmental funds and changes in net position 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 $2,721,282 difference are as
follows:
Capital Outlay $ 4,917,533
Depreciation Expense (2,196,251)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position of
governmental activities $ 2,721,282
era
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 2 - Reconciliation of Government -Wide and Fund Financial Statements (Continued):
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 (Continued)
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 position." The
details of this $883,731 difference are as follows:
Debt Issued or Incurred
Principal Repayment
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position of
governmental activities
$
833,731
$ 833,731
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
$ (311,721)
Other Post Employment Benefits
(514,461)
Accrued Interest Payable
5,209
NetAdjustment to Decrease Net Changes in Fund Balances -
total governmental funds to arrive at changes in net position of
governmental activities
$ (820,973)
Note 3 -Accounting Changes:
The beginning balances of governmental activities have been adjusted due to the
implementation of GASB 68.
Governmental
Activities
Net Position, October 1, 2014, Previously Stated $ 59,753,332
Increase for Accounting Change - GASB 68 6,525,025
Net Position, October 1, 2014, Restated $ 66,278,357
E1161
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 4 - Stewardship, Compliance, and Accountability:
A. Budgetary Infonnation -
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 employed in governmental funds.
Encumbrances (e.g., purchase orders and contracts) outstanding at year end are
reported as assigned fund balances and do not constitute expenditures or
liabilities because the commitments will be re -appropriated and honored during
the subsequent year.
(9) Budgets are adopted for the general fund, special revenue funds, debt service
funds and the capital projects fund on a basis consistent with generally accepted
accounting principles, except as described below under Budget Basis of
Accounting. Budgets are also adopted for the enterprise funds: however,
budgetary comparisons are not presented since they are not required 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.
44
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 4 - Stewardship, Compliance, and Accountability (Continued):
B. Budgetary Basis of Accounting -
The City includes a portion of the prior year's fund balances represented by unappropriated
liquid assets remaining in the fund as budgeted revenue in the succeeding year. The
results of operations on a GAAP basis do not recognize the fund balance allocation as
revenue as it represents prior periods' excess of revenues over expenditures. The City
does not budget for capital outlay expenditures and other financing sources related to the
acquisition of assets through notes payable.
C. Expenditures in Excess of Appropriations -
Expenditures exceeded appropriations in various departments of the General Fund,
Capital Projects Fund, and Recreation Impact Fee Fund. Theses excess expenditures
were funded by greater than anticipated revenues and available fund balance.
Note 5 - Cash and Investments:
Deposits
At year-end, the carrying amount of the City's deposits was $39,084,763 and the bank
balance was $39,737,424. Fiduciary fund cash held by the pension fund is not in the City's
bank. All bank deposits were fully covered by federal depository insurance or by collateral
held in banks that are members of the State of Florida's Collateral Pool as specified under
Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans.
This limits local government deposits to "authorized depositories".
Investments
Investments in all fund types are stated at fair value, which is the amount for which an
investment could be exchanged in a current transaction between willing parties, other than
in a forced liquidation sale. Fair value is based on quoted market prices. Changes in the
fair value of investments are recognized as revenue and included in investment income.
The City's investment policies are governed by state statute and city ordinance. Authorized
investments are:
(a) The Local Government Surplus Funds Trust (SBA).
(b) SEC registered money market funds.
(c) Interest-bearing time deposits or savings accounts in qualified public depositories.
(d) Direct obligations of the U.S. Treasury.
(e) Federal agencies and instrumentalities.
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 5 - Cash and Investments (Continued):
Investments (Continued)
(f) Securities of, or other interests in, any open-end or closed-end management -type
investment company or investment trust registered under the Investment Company
Act of 1940.
(g) Repurchase Agreements.
(h) Other investments authorized by ordinance.
The assets of the City's police and firefighters pension funds, as well as the general
employees defined benefit pension fund, are invested in the pooled investment fund for
the Florida Municipal Pension Trust Fund (FMPTF). Investments held in this fund
consist of corporate bonds and stocks and cash equivalents. The fund is stated at fair
value, and investment earnings are allocated to participants in the fund based on their
equity in this pooled investment account as provided by the Florida Municipal Pension
Fund.
Investments made by the City of Clermont at September 30, 2015 are summarized below.
Defined benefit pension plan investments, other than $21,058,876 in mutual funds,
investing in equity securities, are included below. In accordance with GASB 31,
investments are reported at fair value.
Investment Type
Federal Agency Bond
US Treasury Notes
Corporate Note
Commercial Paper
Municipal Bond
Pension Fixed Income Securities
Credit Risk:
Fair Value
Credit Rating
$ 3,716,401
AA+
10,169,278
TSY
2,498,004
AAA/AA
474,526
A-1
825,841
AA
9,688,348
AA/V4
$ 27,372,398
Weighted Average
Maturity
1.55 years
1.67 years
2.12 years
103 days
308 days
5.98 years
The City's investment policy limits credit risk by restricting authorized investments to those
described above.
Custodial Credit Risk:
In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits
may not be returned to it. The City's investment policy requires that bank deposits be
secured as provided by Chapter 280, Florida Statutes. This law requires local governments
to deposit funds only in financial institutions designated as qualified public depositories by
the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust
Fund, a multiple financial institution pool with the ability to assess its member financial
institutions for collateral shortfalls if a default or insolvency has occurred. At September 30,
2015, all of the city's bank deposits were in qualified public depositories.
46
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 5 - Cash and Investments (Continued):
Investments (Continued)
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, 2015, none of the
investments listed are exposed to custodial credit risk because their existence is not
evidenced by securities that exist in physical or book entry form.
Concentration of Credit Risk:
The City's investment policy requires diversification, but does not specify limits on types of
investments.
Interest Rate Risk:
The City's investment policy does not specifically address interest rate risk, however the
general investment policy is to apply the prudent -person rule: Investments are made as a
prudent person would be expected to act, with discretion and intelligence, to seek
reasonable income, preserve capital, and in general, avoid speculative investments. The
City manages its exposure to declines in fair values by investing primarily in pooled
investments that have a weighted average maturity of less than three months.
Note 6 - 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:
El VA
Less
Allowance for
Uncollectible
Accounts
Taxes Other
Accounts
Total
General Fund
$2,224,789
$130,448 $ 966,847
$ (2,189,680)
$1,132,404
Water Fund
393,936
- 42,580
(39,907)
396,609
Sewer Fund
603,670
- -
(114,457)
489,213
Sanitation Fund
299,103
- 285
(43,892)
255,496
Nonmajor Enterprise Fund
94,294
- -
(14,776)
79,518
Internal Service Fund
-
- 2,371
(1,499)
872
Nonmajor Governmental
Funds
-
- 65
-
65
$3,615,792
$130,448 $1,012,148
$ (2,404,211)
$2,354,177
El VA
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 7 - Capital Assets:
Capital asset activity for the year ended September 30, 2015 was as follows:
Governmental Activities:
Capital Assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being
depreciated
Capital Assets, being depreciated:
Buildings
Improve m e nts/infrastructure
Machinery and equipment
Intangibles
Total capital assets being
depreciated
Less Accumulated Depreciation for
Beginning Ending
Balance Increases Decreases Balance
$25,727,548 $ - $ - $25,727,548
3,967,409 3,190,187 (5,918,399) 1,239,197
29,694,957
3,190,187
(5,918,399) 26,966,745
- (7,981,263)
Improvements/infrastructure
(9,674,238)
21,739,659
972,753
- 22,712,412
15,265,015
4,959,351
- 20,224,366
8,810,173
1,474,505
(121,555) 10,163,123
684,068
302,083
- 986,151
46,498,915 7,708,692 (121,555) 54,086,052
Buildings
(7,086,017)
(895,246)
- (7,981,263)
Improvements/infrastructure
(9,674,238)
(607,188)
- (10,281,426)
Machinery and equipment
(6,618,814)
(666,734)
121,555 (7,163,993)
Intangibles
(657,612)
(66,904)
- (724,516)
Total accumulated depreciation
(24,036,681)
(2,236,072)
121,555 (26,151,198)
Total capital assets being
depreciated, net 22,462,234 5,472,620 - 27,934,854
Governmental activities capital
assets, net $52,157,191 $ 8,662,807 $ (5,918,399) $54,901,599
Increases in accumulated depreciation for governmental activities includes accumulated
depreciation on assets transferred from business -type activities, therefore total increases
is not the same as depreciation expense. This difference is $39,821.
era
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
Note 7 - Capital Assets (Continued):
Business -type activities:
Capital Assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being
depreciated
Capital Assets, being depreciated:
Buildings
Improvements/infrastructure
Machineryand equipment
Intangibles
Total capital assets being
depreciated
Less Accumulated Depreciation for:
Buildings
Improve m e nts/infrastructure
Machineryand equipment
Intangibles
Total accumulated depreciation
Total capital assets being
depreciated, net
Business -type activities capital
assets, net
September 30, 2015
Beginning Ending
Balance Increases Decreases Balance
$ 1,861,820 $ - $ (839,230) $ 1,022,590
4,148,655 2,335,864 (5,002,122) 1,482,397
6,010,475
2,335,864
(5,841,352)
2,504,987
(29,167,351)
(3,543,757)
441,372
(32,269,736)
37,178
-
(1,216)
35,962
91,644,122
5,495,899
(729,874)
96,410,147
6,504,350
1,156,893
(176,231)
7,485,012
216,011
83,891
-
299,902
98,401,661 6,736,683 (907,321) 104,231,023
(37,178)
-
1,216
(35,962)
(29,167,351)
(3,543,757)
441,372
(32,269,736)
(4,060,083)
(609,773)
153,106
(4,516,750)
(106,391)
(6,507)
-
(112,898)
(33,371,003)
(4,160,037)
595,694
(36,935,346)
65,030,658 2,576,646 (311,627) 67,295,677
$71,041,133 $ 4,912,510 $ (6,152,979) $69,800,664
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:
General government
Public safety
Physical environmentttransportation
Economic environment
Culture and recreation
Total Depreciation Expense - governmental activities
Business -type Activities
Water
Sewer
Sanitation
Stormwater
Total Depreciation Expense - business -type activities
CP]
$ 473,854
752,041
445,665
354
524,337
$ 2,196,251
$ 1,033,421
2,376,229
401,265
349.122
$ 4,160,037
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 8 - Long -Term Debt:
Bonds Payable
The City issues bonds to provide funds for the acquisition and construction of major capital
assets. Bonds have been issued for business -type activities.
The 2009 Water and Sewer Revenue and Refunding Bonds are secured by net revenue of
the water and sewer system. The total principal and interest remaining to be paid on this
series is $18,687,997. For the fiscal year, principal and interest paid on this series was
$1,197,635 and total pledged revenue was $4,348,670.
The original amount of revenue bonds issued in prior years is described below. Revenue
bonds outstanding at year end are as follows:
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending September 30,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031
Total
Notes Payable
Business - Type Activities
Principal
Interest
$ 650,000
$ 523,922
Balance
504,123
Rates and
483,723
Original
September30,
Business -Type Activities
Dates
Maturity
Amount
2015
Water and Sewer Revenue
3.0-4.6%
12/1/2010
Refunding Bonds,
to
Series 2009
(6/1&12/1)
12/1/2030
$16,640,000
$ 13,685,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending September 30,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031
Total
Notes Payable
Business - Type Activities
Principal
Interest
$ 650,000
$ 523,922
670,000
504,123
690,000
483,723
710,000
460,948
735,000
435,660
4,105,000
1,745,025
4,995,000
823,606
1,130,000
25,990
$13,685,000 $ 5,002,997
The Public Improvement Refunding Revenue Note, Series 2012, are secured by public
services taxes, communications service tax and half cent sales tax revenue. Total
principal and interest remaining to be paid on this series is $1,484,105. For the fiscal
year, principal and interest paid on this series was $597,060 and total pledged revenue
was $5,934,260.
6111
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 8 - Long -Term Debt (Continued):
Notes Payable (Continued)
The City issued Public Improvement Revenue Note, Series 2013 in the amount of
$6,000,000 with interest of 3.05% to finance the purchase of the Arts and Recreation
Center. This note is secured by public services taxes and communications service tax.
Total principal and interest remaining to be paid on this series is $6,994,487. For the fiscal
year, principal and interest paid on this series was $484,109 and total pledged revenue was
$4,114,351.
Public improvement revenue notes outstanding at year end are as follows:
Governmental Activities
Interest
Rates and
Dates
Maturity
Balance
Original September 30,
Amount 2015
Public Improvement Refunding
1.09%
12/1/2013
149,285
Revenue Note,
136,805
to
125,550
Series 2012
(6/1 & 12/1)
12/1/2017
$ 2,612,000 $ 1,463,442
Public Improvement Revenue
3.05%
12/1/2014
Note, Series 2013
(6/1 & 12/1)
to
12/1/2028
$ 6,000,000 5,694,228
$ 7,157,670
Annual debt service requirements
to maturity for revenue bonds are as follows
Governmental Activities
Year Ending Septem be r30,
2016
2017
2018
2019
2020
2021-2025
2026-2029
Total
51
Principal
Interest
$ 917,744
$ 181,369
933,957
164,668
638,845
149,285
363,461
136,805
374,547
125,550
2,051 ,221
446,543
1,877,895
116,702
$7,157,670 $1,320,922
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 8 - Long -Term Debt (Continued):
Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2015 was as follows:
Governmental Activities
Public improve mentrevenue notes
Other post employment benefits
Compensated absences
Governmental activity long-term
liabilities
Business -type Activities
Bonds payable -
Revenue bonds
Premium
Total bonds payable
Other post employment benefits
Compensated absences
Business -type activity long-term
liabilities
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
$ 8,041,401 $ - $ (883,731) $ 7,157,670 $ 917,744
2,961,865 514,461 - 3,476,326 -
758,131 387,534 (75,813) 1,069,852 106,985
$11,761,397 $ 901,995 $ (959,544) $11,703,848 $1,024,729
$14,315,000 $ - $ (630,000) $13,685,000 $ 650,000
46,069 - (2,834) 43,235 -
14,361,069 - (632,834) 13,728,235 650,000
1,053,293 162,106 - 1,215,399 -
277,979 65,365 (27,798) 315,546 31,554
$15,692,341 $ 227,471 $ (660,632) $15,259,180 $ 681,554
Note 9 - Interfund Receivables, Payables and Transfers:
Interfund transfers for the year ended September 30, 2015 consisted of the following:
Transfers In
The majority of the transfers above were to fund various capital projects and debt service
payments. The transfer out of the Water Fund is for their share of administrative expenses
and asset transfers to governmental activities. The transfers out of the Sewer and
Stormwater Funds were to recognize the transfer of assets to other funds.
MIA
General
Capital
Water
General
Nonmajor
Transfers Out:
Fund
Projects Fund
Fund
Fixed Assets
Govt
Total
General Fund
$ -
$ 5,796
$ -
$ -
$ 290,998
$ 296,794
Infrastructure Fund
-
529,446
-
-
430,733
960,179
Water Fund
533,857
-
-
11,227
-
545,084
Sewer Fund
-
-
-
11,227
-
11,227
Stormwater Fund
-
-
18,583
672
-
19,255
Nonmajor Governmental
6,838
1,683,831
-
-
375,848
2,066,517
$540,695
$ 2,219,073
$ 18,583
$ 23,126
$1,097,579
$ 3,899,056
The majority of the transfers above were to fund various capital projects and debt service
payments. The transfer out of the Water Fund is for their share of administrative expenses
and asset transfers to governmental activities. The transfers out of the Sewer and
Stormwater Funds were to recognize the transfer of assets to other funds.
MIA
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 9 - Interfund Receivables, Payables and Transfers (Continued):
The composition of interfund receivables and payables as of September 30, 2015 is as
follows:
Receivable Fund
Payable Fund Amount
General Fund Capital Projects Fund $ 68,030
Sanitation Fund General Fund 947,127
$ 1,015,157
The balance due to the Sanitation fund is a result of an interfund loan for the purchase of a
fire truck to be repaid over ten years.
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 and benefits of the defined contribution plan are administered
by the Florida League of Cities.
Defined Benefit Pension Plans - Each plan is independently governed by separate boards of
trustees. Assets may not be transferred between plans, or used for any purpose other than to
benefit each plan's participants as defined in their authorizing ordinances. Each board
contracts with the Florida Municipal Pension Trust Fund (FMPTF), a private, not-for-profit
corporation established by the Florida League of Cities (FLC) for FLC members who wish to
use its services. The FMPTF acts as a common investment and administrative agent for its
members, contracting with a bank custodian, investment manager and actuary to provide a
commingled investment fund and plan valuation services. These plans are included as part of
the City's reporting entity in Pension Trust Funds. The Clermont City Council adopted and
may amend plan provisions by resolution.
Stand-alone audited financial statements of the FMPTF are maintained on file at the FLC
offices in Tallahassee, Florida, and are available upon request to the Pension Services
Division.
A. General Employees -
Contributions - The City's actuarially determined contribution rate per the October 1, 2014
actuarial valuations is $0 for general employees. The City is no longer obligated to make
contributions for general employees. Administrative costs are deducted from the net
position of the plan.
W
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
A. General Employees (Continued) -
Summary of Significant Accounting Policies
Plan Description - The general employees defined benefit pension plan is for general
employees hired prior to September 30, 1985.
Plan Administration - The General Employees' Pension is administered by a Board of
Trustees.
Plan Membership - At September 30, 2015 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 8
Inactive Plan Members Entitled to but Not Yet Receiving Benefits -
Active Plan Members -
8
Net Pension Liability of the City - The City's net pension liability was measured as of
September 30, 2015, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The components of the
net pension liability (asset) of the sponsor on September 30, 2015 were as follows:
Total Pension Liability
Plan Fiduciary Net Position
Sponsor's Net Pension Liability (Asset)
Plan Fiduciary Net Position as a Percentage of
Total Pension Liability (Asset)
$ 344,982
(391,547)
$ (46, 565)
113.50%
Actuarial Assumptions - The total pension liability was determined by an actuarial
valuation as of October 1, 2014, updated September 30, 2015 using the following actuarial
assumptions:
Inflation 3.60%
Salary Increases 0.00%
Investment Rate of Return 9.08%
54
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
A. General Employees (Continued) -
Mortality rates were based on the sex -distinct rates set forth in the RP -2000 Mortality
Table for annuitants and non -annuitants, projected to 2015 by Scale AA, as published by
the Internal Revenue Service (IRS) for purposes of Internal Revenue Code (IRC) section
430; future generational improvements in mortality have not been reflected.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best -estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expenses and inflation) are
developed for each major asset class. These ranges are combined to produce the long
term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the
pension plan's target asset allocation as of September 30, 2015 are summarized in the
following table:
Long Term Expected
Asset Class Target Allocation Real Rate of Return
Core Bonds
Multi -sector
U.S. Large Cap Equity
U.S. Small Cap Equity
Non -U.S. Equity
Total
16%
2.48%
24%
2.20%
39%
7.14%
11%
8.45%
10%
8.43%
100%
Discount rate - The discount rate used to measure the total pension liability was 9.08%.
The projection of cash flows used to determine the discount rate assumed that plan
member contributions will be made at the current contribution rate and that sponsor
contributions will be made at rates equal to the difference between the actuarially
determined contribution rates and the member rate. Based on those assumptions, the
pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate
of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
61.7
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
A. General Employees (Continued) -
Changes in Net Pension Liability
Balance at September 30, 2014
Changes Due to:
SeMce Cost
Expected interest growth
Unexpected investment income
Demographic experience
Benefit payments and refunds
Administrative expenses
Assumption changes
Balance at September 30, 2015
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 349,279 $ 458,926 $ (109,647)
29,060
40,676
(63, 484)
(10, 549)
$ 344,982
38,562
(35, 949)
(63, 484)
(6,508)
$ 391,547
Sensitivity of the Net Pension Liability to changes in the Discount Rate
Current
Discount
1% Decrease Rate
8.08% 9.08%
General Pension Plan Net Pension Liability
Deferred outflows and inflows of resources
(9,502)
35,949
40,676
6,508
(10, 549)
$ (46,565)
1% Increase
10 n8%
$ (30,452) $ (46,565) $ (61,278)
For the year ended September 30, 2015 the City will recognize a pension expense of
$8,212. On September 30, 2015 the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Differences between expected and actual experience $
Changes of assumptions
Net difference between projected and actual earnings on
pension plan investments
613
Deferred
Outflows of Deferred Inflows
Resources of Resources
34,189 $ -
- 8,867
28,759 2,367
$ 62,948 $ 11,234
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
A. General Employees (Continued) -
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended September 30
2016
$ 11,206
2017
11,206
2018
11,206
2019
11,994
2020
4,805
Thereafter
1.297
B. Police Officers' Retirement -
The police officers' defined benefit pension plan is a local law, single employer, defined
benefit pension plans as defined under Florida Statutes, Chapters 175 and 185, which
covers all sworn police officers. 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 plan is administered by a board of Trustees.
Contributions - The City's actuarially determined contribution rate per the October 1, 2014
actuarial valuation. Employees must contribute 3% of pensionable earnings. Administrative
costs are deducted from the net position of the plan. Contributions from the State received
under Florida State Statutes 175 and 185 amounted to $240,486 in 2015 and were recorded
as revenue and expenditures in the general fund.
Benefits Provided - The plan provides retirement, disability, and pre -retirement death
benefits. Normal retirement is defined as 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 defined as attainment of age 50
and 10 years of service; however, the early retirement benefit is reduced by 3% for each
year before the normal retirement date. Employees are 50% vested after five years of
service, increasing at the rate of 10% per year, up to 100% vesting after 10 years of service.
Disability benefits are the larger of the basic pension formula or 42% of average earnings for
service connected disabilities. For non -service connected disabilities, benefits are the larger
of the basic pension formula or 25% of average earnings, and require 10 years of service.
Disability pension is offset as necessary to preclude the total of the participant's worker's
compensation, disability pension, and other City -financed disability or salary continuation
benefit (excluding social security benefits) from exceeding average earnings. Pre -retirement
death benefits for vested members are the vested portion of the basic pension formula,
reduced for payment prior to normal retirement age (payable for 10 years certain to the
beneficiary of a vested participant). For non -vested participants the benefit is the return of
accumulated employee contributions.
M
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
B. Police Officers' Retirement (Continued) -
Plan Membership - At September 30, 2015 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 15
Inactive Plan Members Entitled to but Not Yet Receiving Benefits 11
Active Plan Members 60
86
Net Pension Liability of the City - The City's net pension liability was measured as of
September 30, 2015, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The components of the
net pension liability (asset) of the sponsor on September 30, 2015 were as follows:
Total Pension Liability
Plan Fiduciary Net Position
Sponsors Net Pension Liability (Asset)
Plan Fiduciary Net Position as a Percentage of
Total Pension Liability (Asset)
* does not include excess chapter 175/185 contributions
$ 10,126,748
(12,874,567)
$ (2,747,819)
127.13%
Actuarial Assumptions - The total pension liability was determined by an actuarial
valuation as of October 1, 2014, updated September 30, 2015 using the following actuarial
assumptions:
Inflation 3.60%
Salary Increases 5.50%
Investment Rate of Return 9.08%
Mortality rates were based on the sex -distinct rates set forth in the RP -2000 Mortality
Table for annuitants and non -annuitants, projected to 2007 by Scale AA, as published by
the Internal Revenue Service (IRS) for purposes of Internal Revenue Code (IRC) section
430; future generational improvements in mortality have not been reflected.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best -estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expenses and inflation) are
developed for each major asset class. These ranges are combined to produce the long
term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation.
617
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
B. Police Officers' Retirement (Continued) -
Best estimates of arithmetic real rates of return for each major asset class included in the
pension plan's target asset allocation as of September 30, 2015 are summarized in the
following table:
Asset Class
Target Allocation
Core Bonds
16%
Multi -sector
24%
U.S. Large Cap Equity
39%
U.S. Small Cap Equity
11%
Non -U.S. Equity
10%
Total
100%
Long Term Expected
Real Rate of Return
2.48%
2.20%
7.14%
8.45%
8.43%
Discount rate - The discount rate used to measure the total pension liability was 9.08%.
The projection of cash flows used to determine the discount rate assumed that plan
member contributions will be made at the current contribution rate and that sponsor
contributions will be made at rates equal to the difference between the actuarially
determined contribution rates and the member rate. Based on those assumptions, the
pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate
of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Changes in Net Pension Liability
Balance at September 30, 2014
Changes Due to:
SeMce Cost
Expected interest growth
Unexpected investment income
Demographic experience
Employer contributions
Employee contributions
Benefit payments and refunds
Administrative expenses
Assumption changes
Balance at September 30, 2015
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 9,166, 440 $ 12, 621, 003 $ (3,454,563)
560,680
-
560,680
860,884
1,157,905
(297,021)
-
(1,172,684)
1,172,684
(162,697)
-
(162,697)
522,208
(522,208)
99,188
(99,188)
(298,559)
(298,559)
-
(54,494)
54,494
$ 10,126,748
$ 12,874,567
$ (2,747,819)
6X]
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
B. Police Officers' Retirement (Continued) -
Sensitivity of the Net Pension Liability to changes in the Discount Rate
Police Pension Net Pension Liability
Deferred outflows and inflows of resources
For the year ended September 30, 2015 the City will recognize a pension expense of
$436,231. On September 30, 2015 the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of Deferred Inflows
Resources of Resources
Differences between expected and actual experience $ $ -
Changes of assumptions 145,426
Net difference between projected and actual earnings on
pension plan investments 938,147 -
$ 938,147 $ 145,426
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended September 30:
2016
2017
2018
2019
2020
Thereafter
$ 217,266
217,266
217,266
217,265
(17, 271)
(59,071)
Deferred Retirement Option Program (DROP) - DROP is available to participants who
have attained their normal retirement age and individuals may participate in the DROP for
up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per
annum. The Police DROP balance as of September 30, 2015 is $199,645.
6i0
Current
Discount
1% Decrease
Rate
1% Increase
8.08%
9.08%
10.08%
$(1,504,457)
$(2,747,819)
$ (3,791,493)
For the year ended September 30, 2015 the City will recognize a pension expense of
$436,231. On September 30, 2015 the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of Deferred Inflows
Resources of Resources
Differences between expected and actual experience $ $ -
Changes of assumptions 145,426
Net difference between projected and actual earnings on
pension plan investments 938,147 -
$ 938,147 $ 145,426
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended September 30:
2016
2017
2018
2019
2020
Thereafter
$ 217,266
217,266
217,266
217,265
(17, 271)
(59,071)
Deferred Retirement Option Program (DROP) - DROP is available to participants who
have attained their normal retirement age and individuals may participate in the DROP for
up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per
annum. The Police DROP balance as of September 30, 2015 is $199,645.
6i0
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
C. Firefighters' Retirement -
The firefighters' defined benefit pension plan is a local law, single employer, defined
benefit pension plans as defined under Florida Statutes, Chapters 175 and 185, which
covers all sworn police officers. 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 plan is administered by a board of Trustees.
Contributions - The City's actuarially determined contribution rate per the October 1, 2014
actuarial valuation. Employees must contribute 4% of pensionable earnings. Administrative
costs are deducted from the net position of the plan. Contributions from the State received
under Florida State Statutes 175 and 185 amounted to $181,292 in 2015 and were recorded
as revenue and expenditures in the general fund.
Benefits Provided - The plan provides retirement, disability, and pre -retirement death
benefits. Normal retirement is defined as 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. Volunteer firefighters earn a minimum benefit of $5 for
each year of service. Early retirement is defined as attainment of age 50 and 10 years of
service; however, the early retirement benefit is reduced by 3% for each year before the
normal retirement date. Employees are 50% vested after five years of service, increasing at
the rate of 10% per year, up to 100% vesting after 10 years of service. Disability benefits
are the larger of the basic pension formula or 42% of average earnings for service
connected disabilities. For non -service connected disabilities, benefits are the larger of the
basic pension formula or 25% of average earnings, and require 10 years of service.
Disability pension is offset as necessary to preclude the total of the participant's worker's
compensation, disability pension, and other City -financed disability or salary continuation
benefit (excluding social security benefits) from exceeding average earnings. Pre -retirement
death benefits for vested members are the vested portion of the basic pension formula,
reduced for payment prior to normal retirement age (payable for 10 years certain to the
beneficiary of a vested participant). For non -vested participants the benefit is the return of
accumulated employee contributions.
Plan Membership - At September 30, 2015 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 1
Inactive Plan Members Entitled to but Not Yet Receiving Benefits 62
Active Plan Members 58
121
FYd
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
C. Firefighters' Retirement (Continued) -
Net Pension Liability of the City - The City's net pension liability was measured as of
September 30, 2015, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The components of the
net pension liability (asset) of the sponsor on September 30, 2015 were as follows:
Total Pension Liability
Plan Fiduciary Net Position
Sponsors Net Pension Liability (Asset)
Plan Fiduciary Net Position as a Percentage of
Total Pension Liability (Asset)
* does not include excess chapter 175/185 contributions
6,617,503
(9,466,087)
$ (2,848,584)
143.05%
Actuarial Assumptions - The total pension liability was determined by an actuarial
valuation as of October 1, 2014, updated September 30, 2015 using the following actuarial
assumptions:
Inflation 3.60%
Salary Increases 5.50%
Investment Rate of Return 9.08%
Mortality rates were based on the sex -distinct rates set forth in the RP -2000 Mortality
Table for annuitants and non -annuitants, projected to 2007 by Scale AA, as published by
the Internal Revenue Service (IRS) for purposes of Internal Revenue Code (IRC) section
430; future generational improvements in mortality have not been reflected.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best -estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expenses and inflation) are
developed for each major asset class. These ranges are combined to produce the long
term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation.
rra
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
C. Firefighters' Retirement (Continued) -
Best estimates of arithmetic real rates of return for each major asset class included in the
pension plan's target asset allocation as of September 30, 2015 are summarized in the
following table:
Asset Class
Target Allocation
Core bonds
16%
Multi -sector
24%
U.S. Large Cap Equity
39%
U.S. Small Cap Equity
11%
Non -U.S. Equity
10%
Total
100%
Long Term Expected
Real Rate of Return
2.48%
2.20%
7.14%
8.45%
8.43%
Discount rate - The discount rate used to measure the total pension liability was 9.08%.
The projection of cash flows used to determine the discount rate assumed that plan
member contributions will be made at the current contribution rate and that sponsor
contributions will be made at rates equal to the difference between the actuarially
determined contribution rates and the member rate. Based on those assumptions, the
pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate
of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Changes in Net Pension Liability
Balance at September 30, 2014
Changes Due to:
SeMce Cost
Expected interest growth
Unexpected investment income
Demographic experience
Employer contributions
Employee contributions
Benefit payments and refunds
Administrative expenses
Assumption changes
Balance at September 30, 2015
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 5,607,656 $ 8,571,627 $ (2,963,971)
524,325
-
524,325
553,753
819,482
(265,729)
-
(852,181)
852,181
(67,286)
-
(67,286)
827,357
(827,357)
-
141,632
(141,632)
(945)
(945)
-
-
(40,885)
40,885
$ 6,617,503
$ 9,466,087
$ (2,848,584)
rx]
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
C. Firefighters' Retirement (Continued) -
Sensitivity of the Net Pension Liability to changes in the Discount Rate
Deferred outflows and inflows of resources
For the year ended September 30, 2015 the City will recognize a pension expense of
$321,157. On September 30, 2015 the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of Deferred Inflows
Resources of Resources
Differences between expected and actual experience $ $ -
Changes of assumptions 60,158
Net difference between projected and actual earnings on
pension plan investments 681,745 -
$ 681,745 $ 60,158
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended September 30:
2016
2017
2018
2019
2020
Thereafter
$ 163,308
163,308
163,308
163,309
(7,128)
(24, 518)
Deferred Retirement Option Program (DROP) - DROP is available to participants who
have attained their normal retirement age and individuals may participate in the DROP for
up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per
annum. The Fire DROP balance as of September 30, 2015 is $0.
Current
Discount
1% Decrease
Rate
1% Increase
8.08%
9.08%
10.08%
Fire Pension Net Pension Liability $(1,894,105)
$(2,848,584)
$ (3,641,361)
Deferred outflows and inflows of resources
For the year ended September 30, 2015 the City will recognize a pension expense of
$321,157. On September 30, 2015 the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of Deferred Inflows
Resources of Resources
Differences between expected and actual experience $ $ -
Changes of assumptions 60,158
Net difference between projected and actual earnings on
pension plan investments 681,745 -
$ 681,745 $ 60,158
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended September 30:
2016
2017
2018
2019
2020
Thereafter
$ 163,308
163,308
163,308
163,309
(7,128)
(24, 518)
Deferred Retirement Option Program (DROP) - DROP is available to participants who
have attained their normal retirement age and individuals may participate in the DROP for
up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per
annum. The Fire DROP balance as of September 30, 2015 is $0.
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 10 - Retirement Plans (Continued):
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 2015 was $6,095,900; the City's total payroll for
City employees was $13,681,329.
The City contributes annually to the pension account of each active participant an amount
equal to ten percent (10%) of the employee's annual compensation. No contribution is
required by employees. The City of Clermont City Council adopted and may amend plan
provision by resolution.
The actual contribution made by the City for fiscal year 2015 was $561,578
Note 11 - Other Post Employment Benefits:
In accordance with Florida Statutes Section 112.0801, the City makes continued group
health and dental insurance through the city's current provider available to retirees and
eligible dependents provided certain service requirements and normal age retirement
requirements have been met. This plan is a single employer plan. The City is self insured
with respect to these benefits and provides an explicit subsidy for coverage to retirees and
their spouses based on the coverage selected. The City has eleven retirees currently
receiving benefits. The City has chosen pay-as-you-go funding, but is recording the liability
in the government wide financial statements. This plan does not issue stand-alone financial
statements.
The most recent actuarial report for the City's Retiree Continuation Insurance Plan was
prepared as of April 1, 2015. The annual required contribution and Net OPEB Obligation for
the fiscal year ended September 30, 2015 is as follows:
Annual Required Contribution
$ 927,336
Interest on Net OPEB Obligation
160,606
Adjustment to Annual Required Contribution
(347,238)
Annual OPEB Cost
740,704
Employer Contributions
(64,137)
Increase in Net OPEB Obligation
676,567
Net OPEB Obligation (beginning of year)
4,015,158
Net OPEB Obligation (end of year)
$4,691,725
M1
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 11 - Other Post Employment Benefits (Continued):
Three Year Trend Information -
Fiscal
Actuarial
Percentage
Year
Annual
of Cost
Net OPEB
Ending
OPEB Cost
Contributed
Obligation
9/30/2013
$ 1,010,011
10.0%
$ 3,120,055
9/30/2014
967,942
7.5%
4,015,158
9/30/2015
740,704
9.0%
4,691,725
Funded Status and Funding Progress - OPEB
The funded status of the plan as of April 1, 2015, the most recent actuarial valuation date, is
as follows:
Summary of Actuarial Methods & Assumptions:
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future.
The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, present multiyear trend information about
whether the actuarial values of plan assets are increasing or decreasing over time relative to
the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
ria
Actuarial
Accrued
UAAL as a
Actuarial
Liability
Percentage
Value of
(AAL) - Entry
Unfunded
Funded
Covered
of Covered
Assets
Age
AAL (UAAL)
Ratio
Payroll
Payroll
(a)
(b)
(b - a)
(alb)
(c)
((b-a)/c)
$ -
$ 4,835,731
$ 4,835,731
0.0%
$ 14,667,088
33.00%
Summary of Actuarial Methods & Assumptions:
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future.
The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, present multiyear trend information about
whether the actuarial values of plan assets are increasing or decreasing over time relative to
the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
ria
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 11 -Other Post Employment Benefits (Continued):
Summary of Actuarial Methods & Assumptions (Continued)
Actuarial Cost Method - The projected unit credit cost method.
Amortization Method - level dollar open over 15 years.
Benefits Not Included - None.
Discount Rate - 4.00%.
Inflation rate - 3%
Health Care Costs Trend Rates -The cost of covered medical services has been assumed
to increase in accordance with the following rates, compounded annually:
Year
Increase
Year
2016
7.50%
2020
2017
7.22%
2021
2018
6.94%
2022
2019
6.67%
2023
Increase
Year Increase
6.39%
2024 5.287/o
6.11%
2025 5.00%
5.83%
and later
5.56%
Retiree Contribution Trend - Same as Health Care Trend.
Mortality - RP -2000 Combined Mortality Table for males and females with mortality
improvement projected to 2015 using Scale AA.
Morbidity:
Age
Under 65
65-69
70-74
75-85
86 and older
Rate Per
Age
4.50%
3.00%
2.50%
2.00%
0.00%
Election at Retirement - 40% of future retirees will elect medical and dental coverage at
retirement.
Participation - Active employees are assumed to continue at the current participation and
coverage level into retirement. If an employee waived active coverage, they are assumed
to elect the OAP Plan.
Marital Status - 60% of active employees who elect retiree coverage are assumed to elect
coverage for their spouse. Males are assumed to be three years older than females. Actual
spouse data was used for current retirees.
MA
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
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 $150,000 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 $3,800,000.
There has been no reduction in insurance coverage from that carried in the prior year.
Claims provided have not exceeded insurance coverage in any of the past three fiscal
years.
The general, water, sewer, sanitation and stormwater funds participate in the program and
make payments to the internal service fund based on the number of employees budgeted in
each fund.
The claims liability of $90,143 represents claims processed through October 2015 which
were applicable to the current fiscal year and any additional claims are deemed immaterial.
Changes to the current claims liability are as follows:
Claims Liabilities, beginning of year
Incurred Claims
Payments on Claims
Claims Liabilities, end of year
Note 13 - Commitments and Contingencies:
2015
$ 286,698
3,872,477
2014
$ 62,051
3,453,582
(4,069,032) (3,228,935)
$ 90,143 $ 286,698
Litigation - The City is engaged in various liability claims incidental to the conduct of its
general government operations at September 30, 2015. While the ultimate outcome of the
litigation cannot be determined at this time, management believes that any amounts not
covered by insurance, if any, resulting from these lawsuits would not materially affect the
financial position of the City.
Risk Management - The City is exposed to various risks of loss related to torts; theft of,
damage to and destruction of assets; errors and omissions; and natural disasters for which
the City carries commercial insurance. The City has obtained excess insurance coverage
with varying retentions and limits to further limit exposure to large losses. There have been
no significant reductions in insurance coverage from the prior year and settlements have not
exceeded insurance coverage during the past three years.
Biz
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 14 - Fund Balances:
The City classifies the components of fund balance based on the classifications described
below:
Nonspendable funds include fund balance amounts that are (a) not in spendable form or (b)
legally or contractually required to be maintained intact.
Spendable Fund Balance
Restricted - includes fund balance amounts that can be spent only for specific purposes
stipulated by (a) external resource providers such as creditors (by debt covenants), grantors,
contributors, or laws and regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation.
Committed - includes fund balance amounts that can be used only for the specific purposes
determined by formal action of the City Council, the City's highest level of decision making
authority, with formal action occurring prior to the fiscal year end. Commitments may be
changed or lifted only by the City Council taking the same formal action (Resolution) that
imposed the constraint originally.
Assigned - includes spendable fund balance amounts that are intended to be used for
specific purposes that are neither considered restricted or committed. The City Council is
authorized to assign amounts for a specific purpose.
Unassigned - includes residual positive fund balance within the General Fund which has not
been classified within the other above mentioned categories. Unassigned fund balance may
also include negative balances for any governmental fund if expenditures exceed amounts
restricted, committed, or assigned for those specific purposes.
The City considers restricted amounts to be spent first when both restricted and unrestricted
fund balance is available unless there are legal documents/contracts that prohibit doing this,
such as in grant agreements requiring dollar for dollar spending. Additionally, the City would
first use committed, then assigned, and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.
M
CITY OF CLERMONT. FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
Note 14 - Fund Balances (Continued):
At September 30, 2015, the City's governmental fund balances were as follows:
Note 15 - Subsequent Events:
Subsequent to year end, the City issued Public Improvement Refunding Revenue Note,
Series 2016 in March 2016 to refund the 2013 Public Improvement Revenue Note. The
Series 2016 Note has an interest rate of 2.03% with principal and interest payments due
through maturity date of December 1, 2028. The City also issued Infrastructure Sales
Surtax Revenue Note, Series 2016 that has an interest rate of 2.12% with principal and
interest payments due through maturity date of December 1, 2030.
VLU
Infrastructure
Community
Other
General Capital
Special
Redevelopment
Governmental
Fund Projects
Revenue Fund
Special Revenue
Funds
Total
Fund Balances
Nonspendable
Inventory/prepaids
$ 1,299,870 $ -
$ 380,347
$ -
$ 2,385
$ 1,682,602
Cemetery
- _
-
-
1,083,860
1,083,860
Spendable
Restricted for:
Police
246,929 _
-
-
2,897,850
3,144,779
Fire
- -
-
-
632,423
632,423
Building Services
- _
-
-
86,580
86,580
Culture and recreation
- _
-
-
233,145
233,145
Conrrunity redevelopment
_ -
-
552,606
-
552,606
Infrastructure
- -
2,383,713
-
-
2,383,713
Debt service
- _
-
-
872,649
872,649
Assigned for:
Subsequent year
expenditures
304,600 -
-
-
-
304,600
Unassigned
7,013,550 _
_
-
-
7,013,550
$ 8,864,949 $ -
$ 2,764,060
$ 552,606
$ 5,808,892
$17,990,507
Note 15 - Subsequent Events:
Subsequent to year end, the City issued Public Improvement Refunding Revenue Note,
Series 2016 in March 2016 to refund the 2013 Public Improvement Revenue Note. The
Series 2016 Note has an interest rate of 2.03% with principal and interest payments due
through maturity date of December 1, 2028. The City also issued Infrastructure Sales
Surtax Revenue Note, Series 2016 that has an interest rate of 2.12% with principal and
interest payments due through maturity date of December 1, 2030.
VLU
W-EQUAMD SUPPLE5KEWM 1"0"gq7ojrNr
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Choice of Champions'
CITY OF CLERMONT. FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2015
Schedule of Funding Progress - Retiree Continuation Insurance Plan
Schedule of Funding Progress
'initial valuation date
Schedule of Employer Contributions - Retiree Continuation Insurance Plan
Percentage
Annual Required
UAAL as a
Net OPEB
Fiscal Year Ending
Actuarial
Contributed
Obligation
9/30/2010
%of
Actuarial
Actuarial Value
Accrued Liability
Unfunded AAL
Funded
1,650,000
Covered
Valuation
of Assets
(AAL) Entry Age
(UAAL)
Ratio
Covered Payroll
Payroll
Date
(a)
(b)
(b -a)
(a/b)
( c)
(b -a) / c
5/1/2009 '
$ -
$ 2,413,000
$ 2,413,000
0.0%
$ 10,764,000
22.4%
4/1/2011
-
2,909,000
2,909,000
0.0%
10,342,000
28.1%
4/1/2013
-
5,563,664
5,563,664
0.0%
10,854,391
51.0%
4/1/2015
-
4,835,731
4,835,731
0.0%
14,667,088
33.0%
'initial valuation date
Schedule of Employer Contributions - Retiree Continuation Insurance Plan
71
Percentage
Annual Required
of ARC
Net OPEB
Fiscal Year Ending
Contribution (ARC)
Contributed
Obligation
9/30/2010
$ 611,000
5.0%
$ 1,099,000
9/30/2011
649,000
7.0%
1,650,000
9/30/2012
691,000
7.0%
2,215,000
9/30/2013
1,112,968
10.0%
3,120,055
9/30/2014
1,112,968
6.5%
4,015,158
9/30/2015
927,336
6.9%
4,691,725
71
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
GENERAL EMPLOYEES
September 30, 2015
Total Pension Liability
Service Cost
Interest
Changes in Excess State Money
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, including refunds of employee
contributions
Net Change in Total Pension Liability
Total Pension Liability -beginning
Total Pension Liability -ending (a)
Plan Fiduciary Net Position
Contributions -employer
Contributions -state
Contributions -employee
Net Investment Income
Benefit Payments, including refunds of employee
contributions
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - beginning
Plan Fiduciary Net Position - ending (b)
Net Pension Liability - ending (a)- (b)
Plan Fiduciary Net Position as a Percentage of Total
Pension Liability
Covered -employee Payroll
Net Pension Liability as a Percentage of Covered Employee
Payroll
WA
9/30/2015
29,060
9/30/2014
28,229
40,676
40,560
(10, 549)
(66,212)
(63, 484)
(56, 412)
(4,297)
(28,183)
349,279
377,462
$ 344,982 $
349,279
2,613
40,560
(63,484)
(66,212)
(6,508)
(3,136)
(67,379)
(28,788)
458,926
487,714
$ 391,547 $
458,926
$ (46,565) $
(109,647)
113.50%
131.39%
N/A N/A
CITY OF CLERMONT. FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
POLICE
September 30, 2015
Plan Fiduciary Net Position
Contributions -employer
9/30/2015
9/30/2014
Total Pension Liability
240,486
217,653
Service Cost
$ 560,680
$ 524,531
Interest
860,884
723,246
Changes in Excess State Money
-
-
Differences Between Expected and Actual Experience
(162,697)
(334,599)
Changes of Assumptions
(54,494)
(31,851)
Benefit Payments, including refunds of employee
-
contributions
(298,559)
(532,943)
Net Change in Total Pension Liability
960,308
714,834
Total Pension Liability -beginning
9,166,440
8,451,606
Total Pension Liability -ending (a)
$ 10,126,748
$ 9,166,440
Plan Fiduciary Net Position
Contributions -employer
281,722
411,953
Contributions -state
240,486
217,653
Contributions -employee
99,188
95,733
Net Investment Income
(14,779)
1,043,670
Benefit Payments, including refunds of employee
contributions
(298,559)
(334,599)
Administrative Expense
(54,494)
(31,851)
Other
-
Net Change in Plan Fiduciary Net Position
253,564
1,402,559
Plan Fiduciary Net Position - beginning
12,621,003
11,218,444
Plan Fiduciary Net Position - ending (b)
$ 12,874,567
$ 12,621,003
Net Pension Liability - ending (a) - (b)
$ (2,747,819)
$ (3,454,563)
Plan Fiduciary Net Position as a Percentage of Total
Pension Liability
Covered -employee Payroll
Net Pension Liability as a Percentage of Covered Employee
Payroll
VA]
127.13%
$ 3,108, 552
-88.40%
137.69%
$ 3,108, 552
-111.13%
CITY OF CLERMONT. FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
FIRE
September 30, 2015
Plan Fiduciary Net Position
Contributions -employer
9/30/2015
9/30/2014
Total Pension Liability
181,292
175,931
Service Cost
$ 524,325
$ 596,543
Interest
553,753
530,089
Changes in Excess State Money
-
-
Differences Between Expected and Actual Experience
(67,286)
(756)
Changes of Assumptions
-
(24,109)
Benefit Payments, including refunds of employee
-
contributions
(945)
(81,466)
Net Change in Total Pension Liability
1,009,847
1,045,166
Total Pension Liability -beginning
5,607,656
4,562,490
Total Pension Liability -ending (a)
$ 6,617,503
$ 5,607,656
Plan Fiduciary Net Position
Contributions -employer
646,065
438,902
Contributions -state
181,292
175,931
Contributions -employee
141,632
86,520
Net Investment Income
(32,699)
704,467
Benefit Payments, including refunds of employee
contributions
(945)
(756)
Administrative Expense
(40,885)
(24,109)
Other
-
Net Change in Plan Fiduciary Net Position
894,460
1,380,955
Plan Fiduciary Net Position - beginning
8,571,627
7,190,672
Plan Fiduciary Net Position - ending (b)
$ 9,466,087
$ 8,571,627
Net Pension Liability - ending (a) - (b)
$ (2,848,584)
$ (2,963,971)
Plan Fiduciary Net Position as a Percentage of Total
Pension Liability
Covered -employee Payroll
Net Pension Liability as a Percentage of Covered Employee
Payroll
74
143.05%
$ 2,798,049
-101.81%
152.86%
$ 2,798,049
-105.93%
CITY OF CLERMONT. FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS AND INVESTMENT RETURNS
GENERAL EMPLOYEES
September 30, 2015
9/30/2015 9/30/2014
Actuarially Determined Contribution $ $
Contributions in Relation to the
Actuarially Determined Contribution
Contribution Deficiency (Excess) $ $
Covered Employee Payroll
Contributions as a Percentage of
Co\ered employee Payroll N/A N/A
Notes to Schedule
Valuation Date 10/1/2014
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end
of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates
Actuarial Cost Method
Aggregate
Amortization Method
Level Percentage of Pay, open
Remaining Amortization Period
30 years
Asset Valuation Method
Market Value
Inflation
3.60%
Salary Increases
N/A
Interest Rate
9.08% per year, compounded annually, net of investment
expenses
Schedule of Investment Returns
9/30/2015 9/30/2014
Annual money -weighted rate of return,
net of
investment expenses
-0.05% 8.55%
W
CITY OF CLERMONT. FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS AND INVESTMENT RETURNS
POLICE
September 30, 2015
9/30/2015 9/30/2014
Actuarially Determined Contribution $ 583,559 $ 629,606
Contributions in Relation to the
Actuarially Determined Contribution 522,208 629,606
Contribution Deficiency (Excess)
$ 61,351 $ -
Covered Employee Payroll
3,108,552 2,424,191
Contributions as a Percentage of
Covered Employee Payroll
16.80% 25.97%
Notes to Schedule
Valuation Date
10/1/2014
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the
fiscal year in which contributions
are reported.
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Aggregate
Amortization Method
Level Percentage of Pay, open
Remaining Amortization Period
30 Years
Asset Valuation Method
Market Value
Salary Increases
5.50% per annum
Interest Rate
9.08% per annum (3.60% per annum is attributable to long-term
inflation), this rate was used to discount all future benefit payments
Retirement
20% of eligible participants are assumed to retire at each of ages 52
through 54 and 100% of eligible participants are assumed to retire at
normal retirement age
Other Decrements
Assumed employment termination is based on age and ranges from
5.00% at age 20 to 0.00% at age 50
Assumed disability is based on age and ranges from 0.03% at age 20 to
0.18% at age 50, 75% of disabilities are assumed to be service -
connected
Mortality
Sex -distinct rates set forth in the RP -2000 Mortality Table for annuitants
and non -annuitants, projected to 2007 by Scale AA, as published by the
Internal Revenue Service (IRS) for purposes of Internal Revenue Code
(IRC) section 430, future generational improvements in mortality have
not been reflected
Non -investment Expenses
Liabilities have been loaded by 1.50% to account for non -investment
expenses
Future Contributions
Contributions from the employer and employees are assumed to be
made as legally required.
Schedule of Investment Returns 9/30/2015 9/30/2014
Annual money -weighted rate of return, net of investment
expenses
-0.05% 8.55%
76
CITY OF CLERMONT. FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS AND INVESTMENT RETURNS
FIRE
September 30, 2015
9/30/2015 9/30/2014
Actuarially Determined Contribution $ 603,000 $ 614,833
Contributions in Relation to the
Actuarially Determined Contribution 827,357 614,833
Contribution Deficiency (Excess) $ (224,357) $ -
Covered Employee Payroll 2,798,049 2,767,580
Contributions as a Percentage of
Covered Employee Payroll 29.57% 22.22%
Notes to Schedule
Valuation Date 10/1/2014
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the
fiscal year in which contributions are reported
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Aggregate
Amortization Method Level Percentage of Pay, Open
Remaining Amortization Period 30 Years
Asset Valuation Method
Market Value
Salary Increases
5.50% per annum
Interest Rate
9.08% per annum (3.60% per annum is attributable to long-term
inflation), this rate was used to discount all future benefit payments
Retirement
20% of eligible participants are assumed to retire at each of ages 52
through 54 and 100% of eligible participants are assumed to retire at
normal retirement age
Other Decrements
Assumed employment termination is based on age and ranges from
4.30% at age 20 to 0.00% at age 50
Assumed disability is based on age and ranges from 0.03% at age 20 to
0.18% at age 50, 75% of disabilities are assumed to be service -
connected
Mortality
Sex -distinct rates set forth in the RP -2000 Mortality Table for annuitants
and non -annuitants, projected to 2007 by Scale AA, as published by the
Internal Revenue SeMce (IRS) for purposes of Internal Revenue Code
(IRC) section 430, future generational improvements in mortality have
not been reflected
Non -investment Expenses
Liabilities have been loaded by 1.75% to account for non -investment
expenses
Future Contributions
Contributions from the employer and employees are assumed to be
made as legally required.
Schedule of Investment Returns 9/30/2015 9/30/2014
Annual money -weighted rate of return, net of investment
expenses
-0.05% 8.55%
1115111511
cLEIRlv(ONT
Choice of Champions'
78
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Choice of Champions'
MAJOR GOVERNMENTAL FUNDS
Capital Projects Fund
Capital Projects Fund This fund was established to account for financial
resources segregated for the acquisition or
construction of major capital facilities.
0.4
CITY OF CLERMONT, FLORIDA
BUDGET AND ACTUAL
Year Ended September 30, 2015
Revenues:
Intergovernmental revenues
Investment earnings
Total revenues
Expenditures:
Current:
Culture and recreation
Public safety:
Police
Capital Outlay:
Public safety
Culture and recreation
Total expenditures
Excess (Deficiency) of Revenues Over
Expenditures
Other Financing Sources:
Transfers in
Total other financing sources
Net Change in Fund Balance
Fund Balances - beginning
Fund Balances - ending
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 307,804 $ 581,611 $ 498,253 $ (83,358)
1,200 1,200 - (1,200)
309,004 582,811 498,253 (84,558)
53,770 78,893 21,895 56,998
216,653 248,353 - 248,353
4,090,000
3,186,372
236,976
2,949,396
1,427,400
2,445,170
2,458,455
(13,285)
5,787,823
5,958,788
2,717,326
3,241,462
(5,478,819) (5,375,977) (2,219,073) 3,156,904
5,478,819 5,375,977 2,219,073 (3,156,904)
5,478,819 5,375,977 2,219,073 (3,156,904)
1..➢1
OTHER GOVERNMENTAL FUNDS
Special Revenue Funds
Recreation Impact Fees Fund This fund was established to account for recreation
impact fees collected from new developments
constructed in the City which are restricted for use in
funding capital facilities and equipment directly
related to new growth.
Police Impact Fees Fund This fund was established to account for police
impact fees collected from new developments
constructed in the City which are restricted for use in
funding capital facilities and equipment directly
related to new growth.
Fire Impact Fee Fund This fund was established to account for fire impact
fees collected from new developments constructed
in the City which are restricted for use in funding
capital facilities and equipment directly related to
new growth.
Building Services Fund This fund was established to account for the
operations of the City's building and other permits
department which are restricted for use in funding
capital facilities and equipment directly related to
new growth.
Debt Service Fund
Debt Service Fund This fund was established to account for the
accumulation of resources and payment of bond
principal and interest from governmental resources.
Permanent Fund
Cemetery Perpetual Care Fund This fund is used to account for monies provided by
people buying lots in the City cemetery. The
principal must be kept separate and apart from all
other funds, but the interest may be transferred to
the General Fund to defray the cost of cemetery
operation and maintenance.
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
September 30, 2015
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ - $ - $ 4,732 $ 22,983 $ 27,715
Total liabilities - - 4,732 22,983 27,715
Fund balances
Nonspendable - - - 2,385 2,385
Restricted 233,145 2,897,850 632,423 86,580 3,849,998
Total fund balances 233,145 2,897,850 632,423 88,965 3,852,383
Total liabilities and
fund balances $ 233,145 $ 2,897,850 $ 637,155 $ 111,948 $ 3,880,098
[*A
Special Revenue
Recreation
Police Impact Fire Impact
Building
Impact Fees
Fees Fees
Services
Total
Assets:
Cash and cash equivalents
$ 233,145
$ 2,897,850 $ 637,155
$ 109,563
$ 3,877,713
Other receivables
-
- -
-
-
Prepaid costs
-
- -
2,385
2,385
Total assets
$ 233,145
$ 2,897,850 $ 637,155
$ 111,948
$ 3,880,098
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ - $ - $ 4,732 $ 22,983 $ 27,715
Total liabilities - - 4,732 22,983 27,715
Fund balances
Nonspendable - - - 2,385 2,385
Restricted 233,145 2,897,850 632,423 86,580 3,849,998
Total fund balances 233,145 2,897,850 632,423 88,965 3,852,383
Total liabilities and
fund balances $ 233,145 $ 2,897,850 $ 637,155 $ 111,948 $ 3,880,098
[*A
Permanent Fund - Total Nonmajor
Cemetery Governmental
Debt Service Perpetual Care Funds
$ 872,649 $ 1,084,070 $ 5,834,432
- 65 65
- 2,385
$ 872,649 $ 1,084,135 $ 5,836,882
$ - $ 275 $ 27,990
- 275 27,990
- 1,083,860 1,086,245
872,649 - 4,722,647
872,649 1,083,860 5,808,892
$ 872,649 $ 1,084,135 $ 5,836,882
CITY OF CLERMONT. FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
Revenues:
Licenses and permits
Charges for services
Impact fees/special assessments
Investment earnings
Miscellaneous
Total revenues
Expenditures:
Current:
Public safety
Culture and recreation
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Uses:
Transfers in
Transfers out
Total other financing uses
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Year Ended September 30, 2015
Special Revenue
Recreation Police Impact Fire Impact Building
Impact Fees Fees Fees Services Total
$ - $ - $ - $ 643,795 $ 643,795
- - - 106,057 106,057
1,077,768 339,370 440,443 - 1,857,581
2,560 18,482 3,037 1,010 25,089
- - - 726 726
1,080,328 357,852 443,480 751,588 2,633,248
45,000
45,000
127.107
913,839 1,040,946
- 45,000
127,107 913,839 1,085,946
1,035,328 357,852 316,373 (162,251) 1,547,302
(1,688,534)
(231,275)
(139,870)
- (2,059,679)
(1,688,534)
(231,275)
(139,870)
- (2,059,679)
(653,206)
126,577
176,503
(162,251) (512,377)
886,351
2,771,273
455,920
251,216 4,364,760
$ 233,145
$ 2,897,850
$ 632,423
$ 88,965 $ 3,852,383
CE!
Permanent Fund - Total Nonmajor
Cemetery Perpetual Governmental
Debt Service Care Funds
$ - $ - $ 643,795
106,057
- - 1,857,581
3,655 6,838 35,582
- 81,500 82,226
3,655 88,338 2,725,241
- 1,040,946
45,000
883,731
-
883,731
198,438
-
198,438
1,082,169
-
2,168,115
(1,078,514)
88,338
557,126
1,097,579
-
1,097,579
-
(6,838)
(2,066,517)
1,097,579
(6,838)
(968,938)
19,065
81,500
(411,812)
853,584
1,002,360
6,220,704
$ 872,649 $
1,083,860 $
5,808,892
Cbl
CITY OF CLERMONT. FLORIDA
RECREATION IMPACT FEE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Revenues:
Impact fees/special assessments
Investment earnings
Total revenues
Expenditures:
Current:
Culture and recreation
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Uses
Transfers out
Total other financing uses
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Year Ended September 30, 2015
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 500,000 $
1,075,000 $
1,077,768 $
2,768
6,700
6,700
2,560
(4,140)
506,700
1,081,700
1,080,328
(1,372)
105,000 169,995 45,000 124,995
105,000 169,995 45,000 124,995
401,700 911,705 1,035,328 123,623
(1,144,356) (1,649,453) (1,688,534) (39,081)
(1,144,356) (1,649,453) (1,688,534) (39,081)
(742,656) (737,748) (653,206) 84,542
886,351 886,351 886,351 -
$ 143,695 $ 148,603 $ 233,145 $ 84,542
1..R3
CITY OF CLERMONT, FLORIDA
POLICE IMPACT FEE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended September 30, 2015
Revenues:
Impact fees/special assessments
Investment earnings
Total revenues
Expenditures:
Current:
Public Safety:
Law enforcement
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 175,000 $
175,000 $
339,370 $
164,370
13,500
13,500
18,482
4,982
188,500
188,500
357,852
169,352
188,500 188,500 357,852 169,352
1,203,628 - - -
(4,101,266) (2,897,638) (231,275) 2,666,363
(2,897,638) (2,897,638) (231,275) 2,666,363
(2,709,138) (2,709,138) 126,577 2,835,715
2,771,273 2,771,273 2,771,273 -
$ 62,135 $ 62,135 $ 2,897,850 $ 2,835,715
I-YA
CITY OF CLERMONT, FLORIDA
FIRE IMPACT FEE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Revenues:
Impact fees/special assessments
Investment earnings
Total revenues
Expenditures:
Current:
Public safety:
Fire control
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Uses:
Transfers out
Total other financing sources
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Year Ended September 30, 2015
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 175,000 $
200,000 $
440,443 $
240,443
600
600
3,037
2,437
175,600
200,600
443,480
242,880
157,450 157,450 127,107 30,343
157,450 157,450 127,107 30,343
18,150 43,150 316,373 273,223
(95,960) (427,660) (139,870) 287,790
(95,960) (427,660) (139,870) 287,790
(77,810) (384,510) 176,503 561,013
455,920 455,920 455,920 -
$ 378,110 $ 71,410 $ 632,423 $ 561,013
CITY OF CLERMONT, FLORIDA
BUILDING SERVICES SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended September 30, 2015
Expenditures:
Current:
Public safety 857,465 959,641 913,839 45,802
Total expenditures 857,465 959,641 913,839 45,802
Excess (Deficiency) of Revenues
Over Expenditures 43,009 (4,167) (162,251) (158,084)
Net Change in Fund Balances 43,009 (4,167) (162,251) (158,084)
FundBalances- beginning 251,216 251,216 251,216 -
Fund Balances - ending $ 294,225 $ 247,049 $ 88,965 $ (158,084)
1.14
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Licenses and permits
$ 745,000 $
800,000
$ 643,795
$ (156,205)
Charges for services
153,585
153,585
106,057
(47,528)
Investment earnings
1,000
1,000
1,010
10
Miscellaneous
889
889
726
(163)
Total revenues
900,474
955,474
751,588
(203,886)
Expenditures:
Current:
Public safety 857,465 959,641 913,839 45,802
Total expenditures 857,465 959,641 913,839 45,802
Excess (Deficiency) of Revenues
Over Expenditures 43,009 (4,167) (162,251) (158,084)
Net Change in Fund Balances 43,009 (4,167) (162,251) (158,084)
FundBalances- beginning 251,216 251,216 251,216 -
Fund Balances - ending $ 294,225 $ 247,049 $ 88,965 $ (158,084)
1.14
CITY OF CLERMONT. FLORIDA
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Revenues:
Investment earnings
Total revenues
Expenditures:
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources:
Transfers in
Total other financing sources
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Year Ended September 30, 2015
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 2,000 $ 2,000 $ 3,655 $ 1,655
2,000 2,000 3,655 1,655
883,731
883,731
883,731 -
342,889
342,889
198,438 144,451
1,226,620
1,226,620
1,082,169 144,451
(1,224,620) (1,224,620) (1,078,514) 146,106
1,245,253 1,245,253 1,097,579 (147,674)
1,245,253 1,245,253 1,097,579 (147,674)
20,633 20,633 19,065 (1,568)
853,584 853,584 853,584 -
$ 874,217 $ 874,217 $ 872,649 $ (1,568)
FP]
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
employees salaries is used in determining the annual
contribution to the defined contribution plan.
This fund is used to account for the accumulation of
resources to be used forthe retirement annuities of all police
officers. The state contributes an amount determined 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.
Fyi
CITY OF CLERMONT. FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
September 30, 2015
General Employees
Liabilities:
Refunds payable and other - - 132,898 464,902 597,800
Total liabilities - - 132,898 464,902 597,800
Net Position Held in Trust
for Pension Benefits $ 391,547 $ 6,599,382 $ 13,861,636 $ 9,913,377 $ 30,765,942
Fra
Police
Officers
Firefighters
Total
Defined
Defined
Pension
Pension
Employee
Benefit
Contribution
Trust
Trust
Pension Funds
Assets:
Cash and cash equivalents
$ 3,132
$ -
$ 110,032
$ 81,576
$ 194,740
Receivables:
Due from state
-
-
240,486
181,292
421,778
Total receivables
-
-
240,486
181,292
421,778
Investments:
U.S. Government & other debt securities
155,836
-
5,474,111
4,058,401
9,688,348
Equities
232,579
6,599,382
8,169,905
6,057,010
21,058,876
Total Investments
388,415
6,599,382
13,644,016
10,115,411
30,747,224
Total assets
391,547
6,599,382
13,994,534
10,378,279
31,363,742
Liabilities:
Refunds payable and other - - 132,898 464,902 597,800
Total liabilities - - 132,898 464,902 597,800
Net Position Held in Trust
for Pension Benefits $ 391,547 $ 6,599,382 $ 13,861,636 $ 9,913,377 $ 30,765,942
Fra
CITY OF CLERMONT. FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
Year Ended September 30, 2015
General Employees
Investment earnings:
Police
Net increase (decrease) in fair value of
Officers
Firefighters
Total
Defined Defined
Pension
Pension
Employee
(14,778)
Benefit Contribution
Trust
Trust
Funds
Additions:
(14,778)
(32,699)
(43,104)
Contributions:
Total additions
Employer
$ - $ 561,578
$ 462,483
$ 181,359
$ 1,205,420
Plan members
- -
99,188
141,632
240,820
State
- -
240,486
181,292
421,778
Total contributions
- 561,578
802,157
504,283
1,868,018
Investment earnings:
Net increase (decrease) in fair value of
investments
2,613
1,760
(14,778)
(32,699)
(43,104)
Total net investment earnings
2,613
1,760
(14,778)
(32,699)
(43,104)
Total additions
2,613
563,338
787,379
471,584
1,824,914
Deductions:
Benefits/distributions
63,484
198,872
298,559
945
561,860
Administrative expenses
6,508
29,952
54,494
40,885
131,839
Total deductions
69,992
228,824
353,053
41,830
693,699
Change in Net Position
Net Position Held in Trust for Pension Benefits
Beginning of Year 458,926 6,264,868 13,427,310 9,483,623 29,634,727
(67, 379) 334,514 434,326 429,754 1,131, 215
End of Year $ 391,547 $ 6,599,382 $ 13,861,636 $ 9,913,377 $ 30,765,942
Fx1
cLEIRlv(ONT
Choice of Champions'
94
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cLEIRlv(ONT
Choice of Champions'
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 96
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 106
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity 111
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 116
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 122
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.
Fey
City of Clermont, Florida
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Business -type activities
Net investment in capital assets
$ 15,864 $
Fiscal Year
46,569 $
54,834
Restricted
2006
2007
2008
2009
Governmental activities
13, 447
10,841
18,103
17,801
Net investment in capital assets
$ 15,777
$ 15,825 $
27,462
$ 33,938
Restricted
5,935
7,830
8,959
6,526
Unrestricted
8,693
14,459
11,946
13,608
Total governmental activities net position
$ 30,405
$ 38,114 $
48,367
$ 54,072
Business -type activities
Net investment in capital assets
$ 15,864 $
24,837 $
46,569 $
54,834
Restricted
33,732
36,931
13,899
10,437
Unrestricted
13, 447
10,841
18,103
17,801
Total business -type activities net position
$ 63,043 $
72,609 $
78,571 $
83,072
Primary government
Net investment in capital assets
$ 31,641
$ 40,662
$ 74,031
$ 88,772
Restricted
39,667
44,761
22,858
16,963
Unrestricted
22,140
25,300
30,049
31,409
Total primary government net position
$ 93,448
$ 110,723
$ 126,938
$ 137,144
921
Fiscal Year
2010 2011 2012 2013 2014 2015
$ 33,817 $
34,894 $
36,612 $
39,950 $
44,116 $
47,718
6,693
7,381
8,876
9,490
9,918
9,400
13,988
12,465
9,701
7,723
5,719
11,649
$ 54,498 $
54,740 $
55,189 $
57,163 $
59,753 $
68,767
$ 55,540 $
56,430 $
57,241 $
57,863 $
56,680 $
56,586
17,293
9,241
9,477
9,536
10,217
12,135
11,407
19,376
20,436
24,191
27,054
26,943
$ 84,240 $
85,047 $
87,154 $
91,590 $
93,951 $
95,664
$ 89,357
$ 91,324
$ 93,853
$ 97,813
$ 100,796
$ 104,304
23,986
16,622
18,353
19,026
20,135
21,535
25,395
31,841
30,137
31,914
32,773
38,592
$ 138,738
$ 139,787
$ 142,343
$ 148,753
$ 153,704
$ 164,431
97
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Governmental activities:
General government
Public safety
Physical environment
Transportation/public works
Economic environment
Human services
Culture and recreation
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Sewer
Sanitation
Stormwater
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Transportation/public works
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities
program revenues
Business -type activities:
Charges for services:
Water
Sewer
Sanitation
Stormwater
Operating grants and contributions
Capital grants and contributions
Total business -type activities
program revenues
Total primary government program revenues
3,427
Fiscal Year
3,737
3,990
2006
2007
2008
2009
$ 3,232
$ 3,297 $
4,204
$ 4,747
7,109
8,783
10,330
10,775
382
470
514
364
1,322
1,255
1,544
1,164
181
52
48
101
77
130
107
-
1,851
2,441
2,061
2,082
285
226
459
326
14,439
16,654
19,267
19,559
3,427
2,987
3,737
3,990
4,024
3,896
4,521
4,489
1,731
1,816
2,123
2,086
316
427
549
534
9,498
9,126
10,930
11,099
$ 23,937
$ 25,780
$ 30,197
$ 30,658
$ 1,037
$ 1,116
$ 1,582
$ 1,854
1,158
1,105
975
1,203
1,566
882
761
99
523
923
1,047
921
105
2,518
7,330
3,307
4,389
6,544
11,695
7,384
$ 4,839
$ 5,502
$ 5,654
$ 4,909
3,784
4,242
4,422
4,655
2,236
2,402
2,515
2,560
689
729
766
801
11
38
700
-
6,408
3,676
1,480
2,137
17,967
16,589
15,537
15,062
$ 22,356
$ 23,133
$ 27,232
$ 22,446
m
4,316
4,461
Fiscal Year
4,154
4,589
4,823
2010
2011
2012
2013
2014
2015
$ 4,287
$ 3,643
$ 4,211 $
3,258
$ 3,407
$ 3,848
12,459
12,531
12,168
12,685
14,117
14,326
319
279
248
303
350
453
1,768
1,661
1,719
1,725
2,202
2,094
50
102
116
200
363
567
2,055
1,822
1,045
1,928
3,096
4,018
4,316
4,461
4,052
4,154
4,589
4,823
5,927
6,022
5,752
6,106
6,437
6,571
2,169
2,364
2,567
2,465
2,472
3,133
848
955
939
897
1,016
1,080
13,260
13,802
13,310
13,622
14,514
15,607
$ 34,373
$ 33,996
$ 32,954
$ 33,808
$ 38,285
$ 41,106
$ 1,857
$ 1,695
$ 1,649
$ 2,117
$ 2,429
$ 2,356
665
355
450
1,040
1,366
1,684
872
539
604
1,262
956
1,317
1,162
1,237
1,191
896
939
1,598
134
129
27
112
1,718
498
4,690
3,955
3,921
5,427
7,408
7,453
$ 4,817
$ 5,377
$ 5,099
$ 5,215
$ 5,362
$ 5,726
4,852
5,065
5,154
5,357
5,585
5,809
2,613
2,688
2,721
2,775
2,869
2,917
829
855
855
862
881
905
-
-
-
-
-
276
1,544
999
1,752
3,430
2,417
3,219
14,655
14,984
15,581
17,639
17,114
18,852
$ 19,345
$ 18,939
$ 19,502
$ 23,066
$ 24,522
$ 26,305
BE
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Net (expense)/revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenues and Other Changes
in Net Position
Governmental activities:
Taxes
Property taxes
Business taxes
Franchise fees
Utility taxes
Unrestricted intergovernmental revenues
Unrestricted investment earnings
and miscellaneous revenues
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Transfers
Total business -type activities
Total primary government
Change in Net Position
Fiscal Year
2006 2007 2008 2009
$ (10,050)
$ (10,110)
$ (7,572)
$ (12,175)
8,469
7,463
4,605
3,964
$ (1,581)
$(2,647)
$ (2,967)
$ (8,211)
$ 5,665
$ 7,452
$ 7,749
$ 7,601
1,714
1,808
1,911
2,151
1,782
1,881
1,992
2,152
4,953
4,952
4,776
4,458
835
1,216
901
1,050
464
509
496
469
15,413
17,818
17,825
17,881
$ 1,968
$ 2,612
$ 1,853
$ 1,005
(464)
(509)
(496)
(469)
1,504
2,103
1,357
536
$ 16,917
$ 19,921
$ 19,182
$ 18,417
Governmental activities $ 5,363 $ 7,708 $ 10,253 $ 5,706
Business -type activities 9,973 9,566 5,961 4,500
Total primary government $ 15,336 $ 17,274 $ 16,214 $ 10,206
*Business taxes previously reported as General Government Charges for Services
**Special item loss on sale of capital assets
100
Fiscal Year
2010 2011 2012 2013 2014 2015
$ (16,422)
$ (16,240)
$ (15,721)
$ (14,759)
$ (16,363)
$ (18,045)
1,395
1,182
2,271
4,018
2,600
3,245
$ (15,027)
_L_(
$ (13,450)
$ (10,741)
$ (13,763)
$ (14,800)
$ 6,844
$ 5,966
$ 5,535
$ 5,350
$ 6,533
$ 7,193
*
113
111
126
130
2,373
2,285
2,189
2,123
2,379
2,502
2,558
2,568
2,430
2,490
2,887
2,953
4,503
4,664
5,063
5,802
6,110
6,645
525
478
388
378
479
554
443
520
453
479
439
557
17,246
16,481
16,171
16,733
18,953
20,534
$ 360
$ 145
$ 289
$ 167
$ 200
$ (976)
(443)
(520)
(453)
(479)
(439)
(557)
(83)
(375)
(164)
(312)
(239)
(1,533)
$ 17,163
$ 16,106
$ 16,007
$ 16,421
$ 18,714
$ 19,001
$ 824
$ 241
$ 450
$ 1,974
$ 2,590
$ 2,489
1,312
807
2,107
3,706
2,361
1,712
$ 2,136
$ 1,048
$ 2,557
$ 5,680
$ 4,951
$ 4,201
101
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
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
General fund
Nonspendable
Restricted
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Assigned
Unassigned
Total all other governmental funds
Fiscal Year
2006 2007 2008
$ 233 $ 307 $ 209
4,857 9,128 9,572
$ 5,090 $ 9,435 $ 9,781
$ 1,189 $ 1,539 $ 1,912
7,767 10,771 5,314
780 843 4,496
$ 9,736 $ 13,153 $ 11,722
Post GASB 54
2011 2012 2013
$ 335
$ 195
$ 189
175
224
257
912
1,039
765
10,048
9,744
8,878
$ 11,470
$ 11,202
$ 10,089
$ 848 $ 890 $ 939
6,359 7,763 8,295
2,854 668 -
(1)
$ 10,060 $ 9,321 $ 9,234
102
Fiscal Year
2009 2010
$ 214 $ 246
10,860 11,358
$ 11,074 $ 11,604
$ 2,267 $ 2,758
4,147 4,839
3,271 2,978
$ 9,685 $ 10,575
Post GASB 54
2014 2015
$ 53 $
1,300
312
247
1,202
304
7,669
7,014
$ 9,236 $
8,865
$ 1,064 $ 1,466
8,604 7,659
$ 9,668 $ 9,125
103
City of Clermont, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Revenues
Taxes
Franchise Fees
Licenses and permits
Intergovernmental revenue
Charges for services
Fines and forfeitures
Impact fees/special assessments
Investment income
Miscellaneous
Total revenues
Expenditures
General government
Public Safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Capital outlay
Debt service
Principal
Interest
Other charges
Total expenditures
Excess of revenues
over (under) expenditures
Other financing sources (uses)
Refunding Bonds/Notes Payable
Transfers in
Transfers out
Debt issuance
Sale of capital assets
Payments to refunded bond escrow agent
Total other financing sources (uses)
Net change in fund balances
Fiscal Year
2006 2007 2008 2009
$
10,327
$
11,141
$
11,652
$
11,903
456
491
835
674
4,211
8,340
11,977
8,666
407
462
643
1,103
226
175
321
178
2,444
1,717
1,209
903
738
1,101
687
848
505
391
1,683
444
19,314
23,818
29,007
24,719
$
2,694
$
3,079
$
3,640
$
3,654
6,452
9,141
10,999
10,275
343
461
497
490
967
1,189
2,976
1,129
38
48
48
102
75
129
105
-
1,259
1,556
10,024
1,893
10,235
94
1,909
1,738
868
449
8,176
6,259
244
440
465
375
23,175
16,586
38,839
25,915
$
(3,861)
$
7,232
$
(9,832)
$
(1,196)
1,676
1,265
6,468
6,684
(1,212)
(756)
(5,971)
(6,232)
5,250
-
8,250
5,714
509
8,747
452
$
1,853
$
7,741
$ (1,085)
$(744)
Debt service as a percentage of noncapital
expenditures 9.3% 7.1%
* Note: Franchise Fees previously reported as Taxes.
**Note: Increase in % due to refunding of 2002 bonds. Without the refunding the % would be 2.8%.
104
23.4% 28.9%
Fiscal Year
2010
2011
2012
2013
2014
2015
$ 11,775
$ 10,819
$ 8,079
$ 7,951
$ 9,546
$ 10,275
*
14,844
2,188
2,123
2,379
2,502
678
528
455
884
941
788
5,733
6,059
6,310
6,729
8,796
8,772
1,036
1,013
1,011
1,085
1,212
1,312
189
186
215
172
589
757
1,131
582
679
1,909
1,401
1,858
379
148
244
108
99
131
522
612
474
622
915
1,047
21,443
19,947
19,655
21,583
25,878
27,442
$
4,081
$ 3,272
$ 3,080
$ 3,148
$ 3,776
$ 3,600
11,212
11,625
11,352
12,579
13,571
14,844
309
275
247
307
423
744
1,620
1,472
1,340
1,263
1,635
1,635
50
102
641
722
365
564
1,878
1,792
1,769
2,014
2,948
3,725
643
1,923
2,073
2,638
9,381
2,695
493
470
490
3,080
571
884
181
162
143
122
177
198
20,467
21,093
21,135
25,873
32,847
28,889
$
976
$ (1,146)
$ (1,480)
$ (4,290)
$ (6,969)
$ (1,447)
$
$ -
$ -
$ 2,612
$ 6,000
$ -
2,088
3,274
1,118
3,091
9,337
3,857
(1,645)
(2,776)
(644)
(2,612)
(8,788)
(3,323)
3,091
498
474
443
6,549
534
$
1,419
$ (648)
$ (1,006)
$ (1,199)
$ (420)
$ (913)
3.6%
3.3%
3.5%
14.9%
3.5%
4.5%
105
City of Clermont, Florida
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal
Property
Utility
Business
Franchise
1,795
Year
Tax
Tax
Tax
Fees
Total
2006
5,488
2,948
1,714
10,150
2007
7,155
3,138
1,808
12,101
2008
7,749
1,992
1,911
11,652
2009
7,601
2,152
2,151
11,904
2010
6,844
2,558
2,373
11,775
2011
5,966
2,568
2,285
10,819
2012
5,535
2,430
113
2,189
10,267
2013
5,350
2,490
111
2,123
10,074
2014
6,533
2,887
126
2,379
11,925
2015
7,193
2,953
130
2,502
12,778
Taxes Included in Unrestricted Intergovernmental Revenues
Fiscal Sales
Year Tax
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
1,157
1,210
1,139
1,033
1,053
1,100
1,296
1,419
1,567
1,820
State Revenue
Sharing
368
388
356
302
299
328
383
535
635
749
Local Option
Gas Tax Total
286
1,811
325
1,923
300
1,795
289
1.624
322
1,674
306
1,734
296
1,975
280
2,234
290
2,492
378
2,947
* Business Tax Receipts previously reported under Licenses
M.
City of Clermont, Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Total
Estimated
Assessed
Year
Less:
Total Taxable
Direct
Actual
Value as a
Ended
Real*
Personal
Tax Exempt
Assessed
Tax
Taxable
Percentage of
Sep 30
Property
Property
Property
Value
Rate
Value
Actual Value
2006
1,771,503
153,086
382,885
1,541,704
3.729
1,924,589
80.11%
2007
2,466,549
171,470
620,750
2,017,269
3.729
2,638,019
76.47%
2008
2,975,139
186,835
676,371
2,485,603
3.142
3,161,974
78.61%
2009
3,022,925
195,808
792,997
2,425,736
3.142
3,218,733
75.36%
2010
2,592,111
211,950
599,821
2,204,240
3.142
2,804,061
78.61%
2011
2,171,815
209,726
598,187
1,783,354
3.142
2,381,541
74.88%
2012
2,124,017
206,870
605,114
1,725,773
3.142
2,330,887
74.04%
2013
2,185,702
205,140
611,063
1,779,779
3.142
2,390,842
74.44%
2014
2,336,882
207,024
630,762
1,913,144
3.729
2,543,906
75.20%
2015
2,574,360
215,752
652,769
2,137,343
3.729
2,790,112
76.60%
Source: Lake County Property Appraisers Office
* Information on breakdown of residential and commercial property is not available.
107
City of Clermont, Florida
Property Tax Rates
Direct and Overlapping' Governments
Last Ten Fiscal YearS2
(per $1,000 of assessed value)
Source: Lake County Property Appraisers Office
1 Overlapping rates are those of local and county governments that apply to property owners within the City of Clermont.
z Taxes levied for the fiscal year are based on the prior year taxable value.
108
Direct Rate
Overlapping Rates
City of
Lake
South
Lake
St. Johns
Total
Clermont
Lake County
County
Lake
County
River Water
Direct &
Fiscal
Operating
Operating
Voted
Ambulance
School
Hospital
Water
Management Overlapping
Year
Millage
Millage
Debt Service
MSTU
District
District
Authority
District
Rates
2006
3.7290
5.7970
0.0000
0.5289
7.9810
1.0000
0.3370
0.4620
19.8349
2007
3.7290
5.7470
0.2000
0.5289
7.6480
1.0000
0.2530
0.4620
19.5679
2008
3.1420
4.7410
0.2000
0.4651
7.6980
0.8666
0.2130
0.4158
17.7415
2009
3.1420
4.6511
0.1101
0.4651
7.5170
0.8666
0.2130
0.4158
17.3807
2010
3.1420
4.6511
0.1101
0.4651
7.5320
0.8666
0.2130
0.4158
17.3957
2011
3.1420
4.7309
0.1101
0.3853
7.5230
0.8666
0.2405
0.4158
17.4142
2012
3.1420
4.7309
0.1101
0.3853
7.3940
0.8000
0.2405
0.3313
17.1341
2013
3.1420
4.7309
0.1900
0.3853
7.3200
0.8000
0.2554
0.3313
17.1549
2014
3.7290
4.7309
0.1900
0.3853
7.1700
0.7900
0.2554
0.3283
17.5789
2015
3.7290
5.3856
0.1600
0.4629
7.2460
0.7633
0.2554
0.3164
18.3186
Source: Lake County Property Appraisers Office
1 Overlapping rates are those of local and county governments that apply to property owners within the City of Clermont.
z Taxes levied for the fiscal year are based on the prior year taxable value.
108
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
2015 2006
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Adams Family LP
$ 26,348
1
1.23%
$ 27,391
1
1.78%
Citrus Tower FL Phase I LLC
24,627
2
1.38%
Centennial Citrus Tower LLC
23,942
3
1.35%
South Lake Hospital, Inc.
19,657
4
1.10%
Westdale Sundance LTD
18,623
5
1.05%
IP9 MF Clermont LLC
17,953
6
1.01%
Citrus Tower FL Phase I I LLC
15,326
7
0.86%
20,148
3
1.31%
Weingarten 1-4 Clermont Landing
14,400
8
0.81%
Taylor Morrison of Florida Inc
13,456
9
0.76%
Living Well Lodges Clermont LLC
12,633
10
0.71%
Lennar Homes Inc.
27,122
2
1.76%
Sundance Clermont LLC
11,890
5
0.77%
Target Corporation
9,984
9
0.65%
Clermont Center LTD
10,923
6
0.71%
Village at East Lake
9,860
10
0.64%
Lost Lake Reserve LC
12,231
4
0.79%
KB Home Orlando LLC
10,235
8
0.66%
Regency Hills by Levitt & Sons
LLC
10,384
7
0.67%
TOTAL
$186,965
10.50%
$150,168
9.74%
Source: Lake County Property Appraiser
109
City of Clermont, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Percentage
of Levy
Collected within the
73.7%
Year
Total Tax
Fiscal Year of the Levy
Collections in
Ended
Levy for
6,541
Percentage
Subsequent
September
Fiscal Year
Amount
of Levy
Years
2006
7,522
5,544
73.7%
-
2007
7,518
7,155
95.2%
17
2008
7,810
7,425
95.1%
15
2009
7,622
7,243
95.0%
22
2010
6,814
6,536
95.9%
5
2011
6,001
5,698
95.0%
15
2012
5,603
5,325
95.0%
5
2013
5,422
5,153
95.0%
8
2014
6,635
6,325
95.3%
9
2015
7,133
6,793
95.2%
6
Total Collections to Date
Amount
Percentage
of Levy
5,544
73.7%
7,172
95.4%
7,440
95.3%
7,265
95.3%
6,541
96.0%
5,713
95.2%
5,330
95.1%
5,161
95.2%
6,334
95.5%
6,799
95.3%
Note: Property taxes become due and payable on November 1st of each year. A four (4) percent
discount is allowed if the taxes are paid in November, with the discount declining by one (1)
percent each month thereafter. Accordingly, taxes collected will never be 100 percent of the
tax levy.
110
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 116 for personal income and population data.
* Information is not available.
111
Business -Type
Fiscal
Governmental Activities
Activities
Year
Water & Sewer
Total
Percentage
Ended
Revenue
Notes
Refunding
Primary
of Personal
Sept
Bonds
Payable
Revenue Bonds
Government
Income'
Per Capita'
2006
5,775
5,392
17,146
28,313
5.55%
1,288
2007
5,360
5,358
16,954
27,672
5.53%
1,209
2008
4,935
5,857
16,603
27,395
3.94%
1,167
2009
4,495
38
16,232
20,765
2.89%
858
2010
4,040
-
16,016
20,056
2.76%
698
2011
3,570
15,512
19,082
2.55%
650
2012
3,080
-
14,963
18,043
2.41%
615
2013
-
2,612
14,979
17,591
2.19%
582
2014
8,041
14,361
22,402
2.74%
706
2015
7,157
13,728
20,885
2.45%
646
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 116 for personal income and population data.
* Information is not available.
111
City of Clermont, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2015
(amounts expressed in thousands, except population and per capita amount)
Percentage Amount
Total Applicable to Applicable to
Outstanding City of Clermont (1) City of Clermont
Direct:
City of Clermont $ 7,157 100% $ 7,157
Total Direct Debt $ 7,157 $ 7,157
Overlapping
Lake County 24,255 13% 3,153
School District of Lake County - 13% -
Total Overlapping Debt $ 24,255 $ 3,153
Total direct and overlapping debt
payable from ad valorem taxes $ 31,412 $ 10,310
Estimated Population 32,348
Total direct and overlappinq debt per capita $ 318.73
(1) Estimates based on ratio of assessed taxable values.
Note: The City of Clermont has no legal debt margin.
Sources: Lake County Clerk Finance Office
Lake County Property Appraiser's Office
112
Public
Fiscal Service
Year Taxes
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
1,781,626
1,881,092
1,992,018
2,151,318
2,558,281
2,568,141
2,430,440
2,490,461
2,887,161
2,952,785
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Public Improvement Revenue Refunding Note, Series 2012
Communications
Service
Tax
1,163, 971
1,253,425
1,279,653
1,257,344
1,266,696
1,233,789
1,257,217
1,349,929
1,216,076
1,161,566
Half -Cent
Sales Tax
1,156, 694
1,209,748
1,139,315
1,033,141
1,053,073
1,100,125
1,295,687
1,418,710
1,567,249
1,819,909
Total Revenue
Available for
Debt Service
4,102, 291
4,344,265
4,410,986
4,441,803
4,878,050
4,902,055
4,983,344
5,259,100
5,670,486
5,934,260
Debt Service
Principal
415,000
415,000
425,000
440,000
455,000
470,000
490,000
3,080,000
570,599
577,959
Interest
222,372
228,338
209,606
195,106
179,159
161,806
143,350
66,550
25,361
19,101
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Public Improvement Revenue Note, Series 2002 was refunded in 2012, this includes the payoff of the original bonds.
113
Coverage
6.44
6.75
6.95
6.99
7.69
7.76
7.87
1.67
9.51
9.94
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Public Improvement Revenue Note, Series 2013
Fiscal
Year
Public
Service
Taxes
2006
-
2007
-
2008
-
2009
-
2010
-
2011
-
2012
-
2013
-
2014
2,887,161
2015
2,952,785
Communications Total Revenue
Service Available for Debt Service
Tax Debt Service Principal
1,216,076
1,161,566
4,103, 237
4,114,351
305,772
Interest
Coverage
-
N/A
-
N/A
-
N/A
-
N/A
-
N/A
-
N/A
-
N/A
-
N/A
82,350
49.83
178,337
8.50
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
114
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements
1 Operating revenue is computed per bond resolution requirements. Investment earnings are included.
z Operating expense is computed per bond resolution requirements. Depreciation expense is not included.
3Includes interest paid on the 2000 and 2009 Refunding Bonds
115
Water and Sewer Revenue and Refunding Bonds
Water and
Water and
Sewer
Sewer
Net Revenue
Fiscal
Operating
Operating
Available for
Debt Service
Year
Revenues'
Expenses'
Debt Service
Principal
Interest
Coverage
2006
9,421,834
5,456,689
3,965,145
150,000
924,353
3.69
2007
12,875,170
8,820,932
4,054,238
230,000
915,802
3.54
2008
10,075,706
7,192,314
2,883,392
390,000
892,688
2.25
2009
10,561,949
6,511,487
4,050,462
410,000
883,206
3.13
3
2010
10,001,836
6,999,096
3,002,740
430,000
744,892
2.56
2011
10,561,295
7,080,592
3,480,703
535,000
660,640
2.91
2012
10,496,535
6,377,695
4,118,840
580,000
643,307
3.37
2013
10,687,908
6,677,774
4,010,134
595,000
604,811
3.34
2014
11,108, 744
7,090,566
4,018,178
615,000
586,461
3.34
2015
11,767,901
7,419,231
4,348,670
630,000
567,636
3.63
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements
1 Operating revenue is computed per bond resolution requirements. Investment earnings are included.
z Operating expense is computed per bond resolution requirements. Depreciation expense is not included.
3Includes interest paid on the 2000 and 2009 Refunding Bonds
115
City of Clermont, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
116
Personal
Education
Income
Level in
(amounts
Per Capita
Years of
Fiscal
expressed in
Personal
Median
Formal
School
Unemploy-
Year
Population'
thousands)
Income'
Age'
Schooling'
Enrollment'
ment Rate
2006
21,986
509,987
23,196
35.9
13.5
5,640
3.3%
2007
22,882
500,338
21,866
36.8
13.6
5,915
3.8%
2008
23,476
696,040
29,649
39.6
13.2
5,436
7.1%
2009
24,199
717,597
29,654
39.7
13.2
4,900
12.3%
2010
28,742
727,000
25,294
36.8
13.6
5,024
9.8%
2011
29,358
748,482
25,495
40.9
13.6
5,116
9.3%
2012
29,827
784,361
26,297
46.8
13.6
5,158
7.0%
2013
30,201
802,803
26,582
41.5
13.8
5,153
5.8%
2014
31,745
816,926
25,734
41.9
13.7
5,198
5.6%
2015
32,348
854,020
26,401
42.1
13.7
5,172
4.8%
Sources:
College of Business
Administration,
University of Florida - Bureau of Economic and
Business Research
z Metro Orlando Economic Development
Commission
3 Lake County School Board
4 U.S. Department
of Labor, Bureau
of Labor Statistics
Note: Unemployment rate information
was only available on a countywide basis through 2009.
116
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
Source: Florida Department of Economic Opportunity , Labor Market Statistics Center
117
2015
2006
Percentage of
Percentage of
Total City
Total City
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Total City Employment
14,362
7,105
South Lake Hospital, Inc.
1,436
1
10.00%
983
1
13.84%
Lake County School System
856
2
5.96%
557
2
7.84%
Publix Supermarkets
473
3
3.29%
349
4
4.91%
Target Corporation
460
4
3.20%
265
5
3.73%
Walmart
329
5
2.29%
446
3
6.28%
City of Clermont
302
6
2.10%
257
6
3.62%
Lowe's
250
7
1.74%
Progressive Plumbing Inc.
200
8
1.39%
Winn Dixie
193
9
1.34%
130
10
1.83%
Home Depot
178
10
1.24%
197
7
2.77%
CBS Builders Supply Inc.
142
9
2.00%
Westminster Care of Clermont
160
8
2.25%
TOTAL
4,677
32.57%
3,486
49.06%
Source: Florida Department of Economic Opportunity , Labor Market Statistics Center
117
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
The City of Clermont had a total metered water flow of approximately 2,521,397,000 gallons for the
12 -month period ending September 30, 2015
118
2015
2006
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
Employer
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
Kings Ridge
202,260
1
8.02%
South Lake Hospital
37,744
2
1.50%
23,512
2
1.11%
Lake County Schools
27,349
3
1.08%
25,054
1
1.18%
Lennar Homes
24,290
4
0.96%
City of Clermont
21,405
5
0.85%
Citrus Tower FL Phase I&II LLC
20,544
6
0.81%
Heritage Hills of Clermont
17,392
7
0.69%
Westminster Comm Care Service
17,171
8
0.68%
15,687
3
0.74%
Meritage Homes
16,687
9
0.66%
Taylor Morrison of Florida
15,952
10
0.63%
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 of Clermont
7,375
8
0.35%
Oakridge Apartments
6,328
9
0.30%
Blue Water Express Car Wash
5,744
10
0.27%
TOTAL
400,794
15.88%
121,586
5.73%
The City of Clermont had a total metered water flow of approximately 2,521,397,000 gallons for the
12 -month period ending September 30, 2015
118
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 1,105,275,000
gallons for the 12 -month period ending September 30, 2015
119
2015
2006
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
34,998
1
3.17%
22,519
1
3.07%
Lake County Schools
22,732
2
2.06%
17,919
2
2.44%
Citrus Tower FL Phase I&II LLC
20,544
3
1.86%
Westminster Comm Care Service
15,943
4
1.44%
13,843
3
1.89%
Living Well Lodges Clermont LLC
15,754
5
1.43%
Centennial Citrus Tower LLC
13,156
6
1.19%
Sundance Apartments
11,650
7
1.05%
9,384
6
1.28%
Village at East Lake
11,535
8
1.04%
8,447
7
1.15%
Osprey Ridge Apartments
10,283
9
0.93%
10,484
4
1.43%
Mister Car Wash
6,280
10
0.57%
Grandview Apartments
9,571
5
1.31%
Emerald Lakes of Clermont
7,375
8
1.01%
Oakridge Apartments
6,328
9
0.86%
Blue Water Express Car Wash
5,744
10
0.78%
TOTAL
162,875
14.74%
111,614
15.22%
The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,105,275,000
gallons for the 12 -month period ending September 30, 2015
119
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Full-time Equivalent
Employees
as of September
30,
Function 2006
2007
2008
2009
General Government
27.50
30.50
30.50
31.00
Public Safety:
Police
Sworn personnel
45.00
51.00
53.00
53.00
Non sworn personnel
16.00
16.00
17.00
17.00
Fire
Firefighters
38.00
45.00
49.00
47.85
Other personnel
2.00
2.00
2.00
2.00
Building Services
0.00
0.00
0.00
0.00
Physical Environment
10.00
10.00
10.00
11.65
Transportation
13.70
15.20
15.60
15.60
Human Services
2.00
2.00
2.00
0.00
Culture & Recreation
22.20
26.20
26.60
25.60
Water
25.40
26.90
29.40
29.40
Sewer
26.30
27.80
26.30
26.30
Stormwater
7.20
8.70
8.80
8.80
Sanitation
8.70
14.70
16.80
16.80
Total
244.00
276.00
287.00
285.00
Source: City of Clermont Finance Department.
120
Full-time Equivalent
Employees
as of September
30,
2010 2011
28.00 27.00
2012
25.85
2013
26.66
2014 2015
31.56 36.00
57.00
57.00
57.00
57.00
61.00
61.00
16.00
5.00
5.00
6.00
6.00
6.00
48.00
48.00
47.80
47.80
56.80
56.80
2.00
2.00
2.00
2.00
2.40
1.90
0.00
0.00
0.00
0.60
8.80
8.30
10.90
5.40
4.60
4.95
4.70
7.45
15.35
13.50
14.80
14.65
12.95
12.85
0.00
0.00
0.00
0.00
0.00
0.00
21.10
22.00
21.20
21.10
27.25
33.35
29.15
29.15
29.45
29.66
30.61
29.35
26.05
25.85
24.50
23.78
23.88
24.15
9.15
9.40
7.95
6.72
6.87
6.65
16.30
16.70
16.85
17.08
17.18
18.20
279.00
261.00
257.00
258.00
290.00
302.00
121
City of Clermont, Florida
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
Function
2006
2007
2008
2009
General Government
Municipal boundary (square miles)
14.13
14.37
14.42
14.43
Business Tax Receipts issued
1,985
2,141
2,263
1,771
A/P Checks issued
5,664
6,023
6,440
6,042
Commercial construction (units)
38
24
42
19
Commercial construction
(value in thousands)
17,534
24,433
18,859
13,223
Residential construction (units)
635
324
301
204
Residential construction
(value in thousands)
186,189
136,477
56,578
56,092
Public Safety:
Police
Auto accidents
625
1,192
1,272
972
Physical arrests
707
933
842
949
911 calls received
7,008
6,317
6,046
6,828
Evidence processed (pieces)
1,610
1,585
1,300
1,652
Parking violations
161
140
145
107
Traffic violations
5,259
5,164
5,103
4,553
Fire
Volunteer firefighters
27
9
8
10
Fire inspections completed
625
414
880
979
Emergency calls answered
3,132
3,048
3,177
3,155
Non -emergency calls answered
189
198
234
434
Human Services
Animals captured**
495
652
-
-
Water
Residential accounts
15,733
16,394
16,959
17,375
Commercial accounts
993
1,069
1,156
1,201
Annual water usage
(thousands of gallons)
2,121,588
2,654,352
2,589,664
2,312,962
Sewer
Residential accounts
11,125
11,554
11,913
12,154
Commercial accounts
955
1,031
1,120
1,158
Sources: Various government departments.
* Data not available.
** Program was discontinued in FY 07-08
*'* Decrease in accounts due to software conversion
combining122ulti-metered
services
955
1,121
Fiscal Year
1,402
1,357
1,573
2010
2011
2012
2013
2014
2015
14.76
14.90
14.95
14.95
15.18
16.65
1,833
1,843
2,237
2,483
1,955
1,701
5,722
4,875
2,336
2,288
3,529
2,747
10
3
8
20
15
16
8,357
18,020
15,203
34,268
17,288
8,625
305
151
173
327
572
323
53,202
23,558
25,882
53,055
62,117
55,178
955
1,121
1,259
1,402
1,357
1,573
854
699
644
886
631
652
5,230
5,587
5,911
6,352
6,643
7,618
1,349
1,297
1,413
2,930
2,384
989
137
378
201
252
379
144
4,981
6,312
5,389
7,225
4,623
6,879
6
6
6
2,121
896
662
1,240
3,766
3,813
3,112
3,822
3,320
3,414
4,127
4,202
352
805
934
447
987
523
17,884
18,240
18,619
19,399
19,670
13,242 **
1,206
1,210
1,207
1,232
1,234
1,211
2,054,236
2,275,936
2,391,485
2,392,022
2,406,183
2,521,397
12,508
12,722
12,936
13,407
13,718
13,578
1,158
1,167
1,166
1,194
1,055
1,074
123
City of Clermont, Florida
Capital Asset Statistics by Function
Last Ten Fiscal Years
Sources: Various government departments
* Does not include private systems
124
Fiscal Year
Function
2006
2007
2008
2009
General Government
Public Safety:
Police
Police stations
1
1
1
1
Patrol units
45
45
45
45
Fire
Fire department facilities
3
3
3
3
Staffed fire stations
2
3
3
3
Fire hydrants
1,630
1,896
2,140
2,140
Fire apparatus
9
9
9
9
Staffed fire apparatus
4
5
5
5
ALS non -transport units
3
3
3
4
Transportation
Streets paved (miles)
109.94
122.93
126.16
131.72
Streetlights
1,231
1,256
1,331
1,331
Culture & Recreation
Number of parks
22
22
22
22
Parks acreage
349.5
349.5
349.5
349.5
Scenic linear trail (miles)
5.7
5.7
5.7
5.7
Tennis courts
8
8
9
9
Fishing piers
4
4
4
4
Boat ramp
1
1
1
1
Water
Miles of water mains
104.52
115.02
115.98
122.83
Sewer
Miles of sanitary sewers
49.51
56.98
59.40
65.18
Miles of storm sewers
11.13
18.07
20.88
24.61
Sources: Various government departments
* Does not include private systems
124
125
Fiscal Year
2010
2011
2012
2013
2014
2015
1
1
1
1
1
1
45
46
46
55
57
79
4
4
4
4
4
3
3
3
3
3
3
3
2,012
2,016
2,048
2,120
2,146
2,200
8
7
8
8
8
12
5
5
5
5
5
3
4
4
4
4
4
3
133.20
133.20
133.20
173.91
191.52
202.38
1,352
1,352
3,103
3,103
3,127
3,158
22
23
23
23
23
23
349.5
349.5
349.5
349.5
349.5
378.0
5.7
5.7
5.7
5.7
5.7
5.7
9
9
9
9
9
9
4
4
4
5
5
10
1
1
1
1
1
1
124.11
197.40
242.36
243.14
222.75
230.28
66.19
132.02
156.81
160.42
161.25
167.60
26.32
89.80
105.38
109.05
133.70
48.22
125
cLEIRlv(ONT
Choice of Champions'
126
Other Rfports
cLEIRlv(ONT
Choice of Champions'
MCDIRMI'I /// DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and City Council
City of Clermont, Florida
We have audited, in accordance with auditing standards generally accepted in the United states
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of
the governmental activities, 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, 2015, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements and have issued our report thereon dated April
26, 2016.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of
Clermont, Florida's internal control over financial reporting (internal control) to determine the
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of City of Clermont's internal control. Accordingly, we do not express an opinion
on the effectiveness of the City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies
in internal control over financial reporting that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
MCDZRMIT DAVzs & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO a@MCDIRMITDAVIS.COM
MEMBERS. PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
127
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Clermont's financial
statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The result of our
tests disclosed no instances of noncompliance, or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Orlando, FL
April 26, 2016
128
MCDIRMI'I /// DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
Honorable Mayor and City Council
City of Clermont, Florida, Florida
Compliance
We have audited the compliance of City of Clermont, Florida (the City) with types of compliance
requirements described in OMB CircularA-133 Compliance Supplementthat could have a direct
and material effect on the City's major federal program for the year ended September 30, 2015.
The City's major federal program is identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
Management's Responsibility
Compliance with the requirements of laws, regulations, contracts, and grants applicable to its
federal programs is the responsibility of the City's management.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for the City's major federal program
based on our audit of the types of compliance requirements referred to above. We conducted
our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular
A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards
and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements referred to
above that could have a direct and material effect on a major federal program occurred. An
audit includes examining, on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the
major federal program. However, our audit does not provide a legal determination of the City's
compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on its major federal
program for the year ended September 30, 2015.
MCDIRMIT DAVIS & COMPANY, LLC
934N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO a@MCDIRMITDAVIS.COM
129
MEMBERS'. PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the City's internal control over compliance
with the types of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and
report on internal control over compliance in accordance with OMB Circular A-133, but not for
the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented, or detected and corrected,
on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or
a combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be significant deficiencies or material weaknesses. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other
purpose.
Orlando, Florida
April 26, 2016
130
CITY OF CLERMONT. FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2015
Award type
Grantor
Pass-through grantor CFDA Agency or Pass-through
Grantor program title Number Entity Grant Number Expenditures
Federal Grants
United States Department of Justice
Bulletproof Vest Partnership Program
16.607
2,348
passed through State of Florida, Department of Law Enforcement
Edward Byrne Memorial Justice Assistance Grant (JAG) Program
16.738 2015-JAGC-LAKE-4-R1-029
6,435
Edward Byrne Memorial Justice Assistance Grant (JAG) Program
16.738 2015-JAGC-LAKE-8-R3-039
10,198
United States Department of Homeland Security
FEMA Staffing for Adequate Fire and Emergency Response (SAFER) *
97.083 EMW-2013-FH-00073
534,564
United States Department of the Interior
passed through State of Florida, Department of Environmental Protection
Land & Water Conservation Program 15.916 LW585 and LW589 307,804
United States Department of Housing and Urban Development
passed through State of Florida, Department of Economic Opportunity
Small Cities Community Development Block Grant 14.228 15DB-OH-06-45-02-N44 22,274
Total federal awards $ 883,623
* Denotes a major program
See accompanying Notes to Schedule of Expenditures of Federal Awards
131
CITY OF CLERMONT. FLORIDA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2015
Note 1 - Basis of Presentation:
The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal grant activity of the City of Clermont, Florida (the City) under programs of the federal
government for the year ended September 30, 2015. The information in this Schedule is
presented in accordance with the requirements of Office of Management and Budget (OMB)
Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Because the
Schedule presents only a selected portion of the operations of the City, it is not intended to and
does not present the financial position, changes in net position or cash flows of the City.
Note 2 - Summary of Significant Accounting Policies:
Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Therefore, amounts reported on the Schedule are based on expenditures incurred as of
September 30, 2015, even if grant or loan was received subsequent to that date. Federal
expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost
Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures
are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are
presented where available.
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CITY OF CLERMONT, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS -
FEDERAL AWARD PROGRAMS
Year Ended September 30, 2015
Part A - Summary of Auditor's Results:
1. The auditor's report expresses an unqualified opinion on the financial statements of the
City of Clermont, Florida (the City).
2. No significant deficiencies relating to the audit of the financial statements are reported in
the Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards.
3. No instances of noncompliance material to the financial statements of the City, which
would be required to be reported in accordance with Government Auditing Standards,
were disclosed during the audit.
4. No significant deficiencies relating to the audit of the major federal award program are
reported in the Independent Auditor's Report on Compliance For Each Major Program and
on Internal Control over Compliance Required By OMB Circular A-133.
5. The auditor's report on compliance for the major federal award program for the City
expresses an unqualified opinion.
6. Audit findings that are required to be reported in accordance with Section 510(a) of OMB
Circular A-133 are reported in this Schedule.
7. The program tested as a major program was the Department of Homeland Security
SAFER Grant (CFDA 97.083).
8. The threshold used for distinguishing between Type A and B programs was $300,000.
9. The City did not qualify as a low-risk auditee.
Part B - Findings - Financial Statement Audit:
None
Part C - Findings and Questioned Costs - Major Federal Award Programs:
None
Part D - Prior Year Audit Findings:
None
133
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MCDIRMI'I /// DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
MANAGEMENT LETTER
Honorable Mayor and City Council
City of Clermont, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Clermont, Florida, as of and for the fiscal
year ended September 30, 2015, and have issued our report thereon dated April 26, 2016.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-
133, Audits of States, Local Governments, and Non -Profit Organizations, and Chapter 10.550,
Rules of the Florida Auditor General.
Other Reports and Schedule
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of the Financial Statements
Performed in Accordance with Government Auditing Standards; Independent Auditor's Report
on Compliance for Each Major Federal Program and Report on Internal Control over
Compliance; Schedule of Findings and Questioned Costs; and Independent Auditor's Report on
an examination conducted in accordance with ACIPA Professional Standards, Section 601,
regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor
General. Disclosures in those reports and schedule, which are dated April 26, 2016, should be
considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i.)l., Rules of the Auditor General, require that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the
preceding annual financial audit report. There were no recommendations in the preceding audit
report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements.
This information has been disclosed in the notes to the financial statements.
MCDZRMIT DAVzs & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO a@MCDIRMITDAVIS.COM
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Financial Condition
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply
appropriate procedures and report the results of our determination as to whether or not the City of
Clermont, Florida has met one or more of the conditions described in Section 218.503(1), Florida
Statues, and identification of the specific condition(s) met. In connection with our audit, we
determined that the City of Clermont, Florida did not meet any of the conditions described in
Section 218.503(1), Florida Statues.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied
financial condition assessment procedures. It is management's responsibility to monitor the City
of Clermont, Florida's financial condition, and our financial condition assessment was based in
part on representations made by management and the review of financial information provided by
same.
Annual Financial Report
Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply
appropriate procedures and report the results of our determination as to whether the annual
financial report for the City of Clermont, Florida for the fiscal year ended September 30, 2015, filed
with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida
Statues, is in agreement with the annual financial audit report for the fiscal year ended September
301 2015. In connection with our audit, we determined that these two reports were in agreement.
Other Matters
Section 10.554(1)(1)2., Rules of the Auditor General, requires that we address in the management
letter any recommendations to improve financial management. In connection with our audit, we
did not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which
warrants the attention of those charged with governance. In connection with our audit, we did not
have any such findings.
Purpose of This Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the council, and applicable management,
and is not intended to be and should not be used by anyone other than these specified parties.
Orlando, Florida
April 26, 2016
136
MCDIRMI'I /// DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
Honorable Mayor and City Council
City of Clermont, Florida
We have audited the financial statements of City of Clermont as of and for the year ended
September 30, 2015, and have issued our report thereon dated April 26, 2016. Professional
standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated July 14, 2011, our responsibility, as described
by professional standards, is to form and express an opinion(s) about whether the financial
statements that have been prepared by management with your oversight are presented fairly, in
all material respects, in conformity with accounting principles generally accepted in the United
States of America. Our audit of the financial statements does not relieve you or management of
your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are
free of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control over financial reporting. Accordingly, as part of our audit, we considered
the internal control of City of Clermont solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in
our professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
MCDZRMIT DAVzs & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO a@MCDIRMITDAVIS.COM
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137
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A
summary of the significant accounting policies adopted by City of Clermont is included in Note 1
to the financial statements. As described in Note 1 to the financial statements, during the year,
City of Clermont changed accounting policies related to the adoption of Statement of
Governmental Accounting Standards (GASB Statement) No. 68, Accounting and Financial
Reporting for Pension Plans and GASB Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date. Accordingly, the cumulative effect of the
accounting change as of the beginning of the year has been reported in the Statement of
Activities. No matters have come to our attention that would require us, under professional
standards, to inform you about (1) the methods used to account for significant unusual
transactions and (2) the effect of significant accounting policies in controversial or emerging
areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management's current judgments. Those judgments are
normally based on knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive
because of their significance to the financial statements and because of the possibility that
future events affecting them may differ markedly from management's current judgments.
The most sensitive accounting estimates affecting the financial statements are:
Management's estimate for the allowance for doubtful accounts is based on historical loss
levels, and an analysis of the individual accounts. We evaluated the key factors and
assumptions used to develop the allowance in determining that it is reasonable in relation to
the financial statements taken as a whole.
Management's estimation for the allowance for depreciation is based on the estimated
useful lives of the capital assets. We evaluated the reasonableness of the useful lives as
well as the depreciation methods in determining that it is reasonable in relation to the
financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly
sensitive because of their significance to financial statement users. The most sensitive
disclosures affecting City of Clermont, Florida's financial statements relate to revenue
recognition as described in Note 1.
Significant Difficulties Encountered During the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
138
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Management has corrected all
such misstatements. In addition, none of the misstatements detected as a result of audit
procedures and corrected by management were material, either individually or in the aggregate,
to the financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management
as a matter, whether or not resolved to our satisfaction, concerning a financial accounting,
reporting, or auditing matter, which could be significant to City of Clermont, Florida's financial
statements or the auditor's report. No such disagreements arose during the course of the
audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter dated April 26, 2016.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with City of Clermont, Florida , we generally
discuss a variety of matters, including the application of accounting principles and auditing
standards, operating and regulatory conditions affecting the entity, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed
resulted in a condition to our retention as City of Clermont, Florida's auditors.
This report is intended solely for the use of management, the City Council and the Auditor
General of the State of Florida and is not intended to be and should not be used by anyone
other than these specified parties.
Very truly yours,
Orlando, Florida
April 26, 2016
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MCDIRMIT %/i DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH
THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES
The Honorable Mayor and City Council
City of Clermont, Florida
We have examined City of Clermont, Florida's (the City) compliance with the requirements of
Section 218.415, Florida Statutes, during the year ended September 30, 2015. Management is
responsible for the City's compliance with those requirements. Our responsibility is to express an
opinion on the City's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and the standards applicable to attestation
engagements contained in Government Auditing Standards issued by the Comptroller General of
the United States and, accordingly, included examining, on a test basis, evidence about the City's
compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our examination provides a reasonable basis for
our opinion. Our examination does not provide a legal determination on the City's compliance with
specified requirements.
In our opinion, City of Clermont, Florida complied, in all material respects, with the aforementioned
requirements for the year ended September 30, 2015.
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Orlando, Florida
April 26, 2016
MCDIRMIT DAVIS & COMPANY, LLC
934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC
141
cLEIRlv(ONT
Choice of Champions'
142