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Comprehensive Annual Financial Report - 1991-1992j/ti eArf COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1992 -, CITY OF CLERMONT, FLORIDA CITY OF CLERMONT, FLORIDA COMPREHENSIVE ANNUAL FINA NCIA L REPORT SEPTEMBER 30, 1992 Prepared by. - Finance Department Joseph E. Van Zile Finance Director THIS PAGE INTENTIONALLY LEFT BLANK ii CITY OF CLERMONT, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1992 TABLE OF CONTENTS INTROpric.- i?y SECTION Letter of Transmittal . . . . . . . . . . . . . . . . . • . . 1 Organization Chart . . . . . . . . . . . 15 Listing of City Officials . . . . . . . . . . . . . . . . . 16 Certificate of Achievement . . . . . . . . . . . . . . . . . 17 FIN CI SECT ON INDEPENDENT AUDITOR'S REPORT Independent Auditor's Report . . . . . . . . . . . . . . . 19 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups . . • . . . • . . • . . • . . . . . • . . 22 Combined Statement of Revenues, Expenditures and Changes In Fund Balances - All Governmental Fund Types . . . . . . . . . . . . . . 27 Combined Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual - General, Special Revenue, Debt Service and Capital Projects Funds . . . . . . . . . . . . . . . . . 28 Combined Statement of Revenues, Expenses and Changes In Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds . . . . . . . . . . . 30 Combined Statement of Cash Flows - All Proprietary Fund Types and Non -Expendable Trust Funds . . . . . . . . . • 32 Notes To Financial Statements . . . . . . • . . . . . . . 35 iii TABLE OF CONTENTS FINANCIAL SECTION (CONTD.) COMBINI G AND INDXVXDDAL FUND AND ACCOUNT GROUP STATEMENTS General Fund: Comparative Balance Sheet . . . . . . . . . . . . . 60 Statement of Revenues, Expenditures and Changes In Fund Balance - Budget and Actual . . . . . . . . . . . 61 Schedule of Revenues - Budget and Actual . . . . . . . . 62 Schedule of Expenditures - Budget and Actual . . . 64 Special Revenue.Funds: Combining Balance Sheet o 0 0 . . . . 68 Combining Statement of Revenues, Expenditures and Changes In Fund Balances . . . . . . . . . . . . . . . . . 69 Statement of Revenues, Expenditures and Changes In Fund Balance - Budget and Actual - Infrastructure Fund, 70 Sales Tax Revenue Bond Sinking Fund: Comparative Balance Sheet . . . . . . . 72 Statement of Revenues, Expenditures and Changes In Fund Balance - Budget and Actual . . . . . 73 Capital Projects Funds: Combining Balance Sheet . . . . . . . . . . . . . . . 76 Combining Statement of Revenues.. Expenditures and Changes In Fund Balances . . . . . . . . . . . . . o 77 Statement of Revenues, Expenditures and Changes In Fund Balance - Budget and Actual - Palatlakaha Recreation Area Fund . . . . . . . . . . . . . . . . . . . 78 Statement of Revenues, Expenditures and Changes In Fund Balance - Budget and Actual — Building Construction Fund . . 0 . . . . . . . . . . . . 79 iv TABLE OF CONTENTS FINANCIAL SECTION (CONTD.) COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP_ STATEMENTSJCONTD.p_ Enterprise Funds: Combining Balance Sheet . . . . . . . . . . . . . . . . 84 Combining Statement of Revenues, Expenses and Changes In Retained Earnings . . . . . . . . . . . . . . . . . 87 Combining Statement of Cash Flows . . . . . . . . . . . . 88 Comparative Schedule of Revenues, Expenses and Changes In Retained Earnings - Required by Bond Ordinance . . . 90 Group Self Insurance Fund: Comparative Balance Sheet . . . . . . . . . . . . . . . . 92 Comparative Statement of Revenues, Expenses and Changes In Retained Earnings . . . . . . . . . . . . . . . . . . . 93 Comparative Statement of Cash Flows . . . . . . . . . . . 94 Trust and Agency Funds: Combining Balance Sheet . . . . . . . . . . . . . . . . . 99 Combining Statement of Revenues, Expenses and Changes In Fund Balances - Trust Funds . . . . . . . . . . . . 100 Statement of Cash Flows - Non -Expendable Trust Fund . . . 102 Statement of Changes In Assets and Liabilities - Deferred Compensation Agency Fund . . . . . . . . . . . 103 Account Groups: Schedule of General Fixed Assets By Sources . . . . . . . 108 Schedule of General Fixed Assets By Function . . . . . . 109 Schedule of Changes In General Fixed Assets By Function . 110 Schedule of General Long -Term Debt . . . . . . . . . . . 111 u TABLE OF CONTENTS STATISTICAL SECTION Comments On The Statistical Section . . . . . . . . . . . 113 General Governmental Expenditures By Function - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . 114 General Revenue By Source - Last Ten Fiscal Years . . . . 116 Property Tax Levies, Tax Collections and Assessed Valuations - Last Ten Fiscal Years . . . . . . . . . . 118 Property Tax Rates - Direct and All Overlapping Governments - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . 120 Special Assessment Collections - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . 123 Utility Revenue Bond Coverage - All Utility Revenue Bonds - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . 124 Demographic Statistics - Last Ten Fiscal Years . . . . . 126 Property Value, Construction and Bank Deposits - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . 128 Principal Taxpayers . . . . . . . . . . . . . . . . . . . 130 Pension Expenses By Type - All Pension Plans - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . 131 Pension Revenues By Source - All Pension Plans - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . 133 Pension Trend Data - Defined Benefit Pension Plans. - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . 134 Schedule of Insurance Coverages . . . . . . . . . . . . . 136 Miscellaneous Statistics . . . . . . . . . . . . . . . . 138 vi TABLE OF CONTENTS OTHER REPORTS Independent Auditor's Report on Supplementary Information - Schedule of Federal Financial Assistance . . . . . . . . 139 Schedule of Federal Financial Assistance . . . . . . . . . 141 Independent Auditor's Report On Internal Control Structure Related Matters Noted In A Financial Statement Audit Conducted In Accordance with Government Auditing Standards . . . . 143 Independent Auditor's Report On Compliance with Laws and Regulations . . . . . . . . . . . . . . . . . . . . . . 145 Independent Auditor's Report On The Internal Control Structure Used In Administering Federal Financial Assistance Programs . . . . . . . . . . . . . . . . . 147 Independent Auditor's Report On Compliance With The General Requirements Applicable To Federal Financial Assistance Programs . . . . . . . . . . . . . . . . . . 151 Independent Auditor's Report On Compliance With Specific Requirements Applicable To Nonmajor Federal Financial Assistance Program Transactions . . . . . . . . . . . . 153 Management Letter . . . . . . . . . . . . . . . . . . . . 155 vi i THIS PAGE INTENTIONALLY LEFT BLANK viii INTRODUCTORY SECTION This section contains the letter of transmittal, organizational chart, and listing of city officials. CITY OF CLERMONT March 23, 1993 Honorable Mayor and Council Members City of Clermont Clermont, Florida The Comprehensive Annual Financial Report of the City of Clermont, Florida, for the fiscal year ended September 30, 1992, is hereby submitted. This report was prepared by the City's Finance 13epartn:ent. Responsibility for both the accuracy of the presented d ►ta and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly present the financial position and results of operations of the City as measured by the financial activity of its various funds, and that it includes the disclosures necessary toenable the reader to gain the maximum understanding of the City's financial activities. THE REPORTING ENTITY AND ITS SERVICES The City 'of Clermont, which occupies five square miles, was incorporated in 1916. The City is located in south Lake County, approximately thirty miles west of the City of Orlando and thirty miles southeast of the City of Leesburg. The City is conveniently accessiblw to Orlando via Florida Highway 50. The City is essentially residential in character and its economy is primarily centered in retail trade as well as lodging, food and beverage establishments which are tourism oriented. Lake County, located in Central Florida, is bounded to the north by Marion County, to the south by :°olk County, to the east by Orange County, Seminole County and Voiusia County; and to the west by Sumter County. Tavares, the County Seat, is located approximately 190 miles southeast of Tallahassee, the State Capitol, and fifty miles northeast of Orlando. P.O. BOX 120219 • CLERMONT, FLORIDA 3471 2-021 J 0 PHONE: 904/394-40B1 The City has a Council -Manager form of government, with a Mayor and four other Council Members who are elected at large for two year staggered terms. Elections are held on the first Tuesday after the first Monday in November of each year. The City employs a full-time Manager who is the chief executive and administrative officer of the City.. The City provides a full range of municipal services as directed by its charter. These include Police and Fire Protection, Street and Sidewalk Maintenance, Planning and Development, Code Enforcement, Recreational Facilities and ]Programs, Cemetery and General Administrative functions. Clermont also operates and maintains water, wastewater treatment, sanitation and stormwater utilities. In addition, the City is the largest financial supporter of a private library that serves city residents, as well as residents of the surrounding area. The funds and entities related to the City of Clermont included in our Comprehensive Annual Financial Report are controlled by or dependent on the City. Determination of "controlled or dependent on" is based on criteria outlined in the Governmental Accounting Standards Board (GASB) statements. The basic criterion for inclusion is the exercise of oversight responsibility by the City Council. Based upon this criterion, the various funds and account groups shown in the Table of Contents are included in this report. The report, together with the accounting and budgeting systems, have been designed to conform to the standards set forth by the Governmental Accounting Standards Board (GASB). ACCOUNTING SYSTEM AND BUDGETARY CONTROL The City's accounting records for General, Special Revenue, Capital Projects and certain Trust and Agency Funds are maintained on a modified accrual basis with revenues being recognized when they become measurable and available, while expenditures are recorded at the time liabilities are incurred. Accounting records for the Enterprise, Internal Service and certain Trust and Agency Funds are maintained on a full accrual basis. In developing and modifying the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute assurance regarding: 1. The safeguarding of assets against loss from unauthorized use or disposition; and 2. The reliability of financial records for preparing financial statements and maintaining accountability for assets. Page 2 The concept of reasonably assurance recognizes that: 1. The cost of a control should not exceed the benefits likely to be derived; and 2. The evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and pr..-)vide reasonable assurance of proper recording of financial transactions. Budgetary integra+.ion is established in the accounting records for control purposes at the object level. The City Manager is authorized to approve +. ansfers within depart- ments, but changes in total budget appropriations for a department must have prior approval of the City Council. Budgetary reports are issued and reviewed monthly. FINANCIAL STATFTMENT FORr*fAT The report is arranged in the following sections: Secti.an I: introductory Section This section contains the Utter of Transmittal and other such material as may be useful in u.nderstandi;ig the repoiti g entity. Section IT: Financial Section This section of the report contains the Independent Auditor's report and financial statements of the City. The financial statements include the General Purpose Financial Statements, which displays financial data for the City as a whole and Co.nbining Statements by Fund Type, s0 i.ch presents data for homogeneous funds. Section TII. Staiisti al Section This section presents detailed historic:-1 infor -ration which will be beneficial to the reader An understanding the Citty's groxyth and its future potential. Section IV. Other Reports T1iiF� section contains other independent Auditor's reports. iitge 3 GENERAL FUND The General Fund encompasses the general governmental functions of the City and all other ,functions not accounted for in other separate funds. Unreserved,undesignated fund balance decreased .30% ,from $1,043,085 to $1,039,977 and was 49.3 % of total General Fund expenditures. Fund balance is the amount of resources available for expenditure in future years.. Of the fund balance available at September 30, 1992, $38,690 is budgeted for use in the 1992-93 fiscal year budget. Revenues and other financing sources of the current fiscal year as compared with those of the previous year are presented as follows: Taxes $1,349,613 61.3 % $15281,612 62.3 % 5.3 % Licenses and Permits 419127 1.9 28,917 1.4 .1 Intergovernmental 501,507 22.8 4869812 23.7 3.0 Charges for Services 329676 1.5 19,327 .9 69.1 Fines & Forfeitures 90,039 4.1 69,571 3.4 29.4 Miscellaneous Revenues 123,103 5.6 170,579 8.3 (27.8) Transfers -In 62.263 2.8 _0_ 100.0 2 200 2� 100.Q% 12,Q56,818 1 O o Revenues increased 7.0% from $2,056,818 to $2,200,328. The most significant change in revenue sources occurred in the areas of charges for services, fines and forfeitures, miscellaneous revenues, and transfers -in. Charges for services increased 69.1 % primarily due to a similar increase in administrative service fees. These fees are charged to the City's enterprise funds to cover administrative costs incurred by the General Fund. A comprehensive review of these costs provided a basis for increased fees. Fines and forfeitures increased 29.4% primarily due to a significant increase in the enforcement of traffic violations. Miscellaneous revenues decreased 27.8 % primarily due to a decrease in impact fees and interest earnings. Nearly $30,000 was collected in impact fees from a private developer during the 1990-91 fiscal year pertaining to a joint public/private road project. Interest earnings also decreased 21.1 % due to the Page 4 Fines and forfeitures increased 29.4 % primarily due to a significant increase in the enforcement of traffic violations. Miscellaneous revenues decreased 27.8 % primarily due to a decrease in impact fees and interest earnings. Nearly $30,000 was collected in impact fees from a private developer during the 1990-91 fiscal year pertaining to a joint public/private road project. Interest earnings also decreased 21.1 % due to the general decrease in interest rates. Transfers -in included a new permanent revenue source in the approximate amount of $44,000 per year. Beginning in the 1991-92 fiscal year, the City will transfer 10 % of water sales revenue from the Utility Fund to the General Fund. The transfer represents an additional source of revenue to the General Fund that is deemed to be a fair revenue since it is paid by all City residents. The transfer was included in a water rate increase that will be discussed in the Utility Fund section of this narrative. Taxes increased 5.3 % primarily due to a 12.5 % increase in assessed valuation of property within the City limits. No increases in the City's ad valorem or utility tax rates were passed during the 1991-92 fiscal year. As noted on Table 4 of the statistical section of this report, Clermont continues to enjoy a stable ad valorem tax rate, with only one increase in the last seven years. In addition, Clermont continues to provide the lowest ad valorem tax rate of any city in Lake County with comparable services. Expenditures and other financing uses of the current fiscal year as compared with those of the previous year are as follows: 19510-91 % :Inc, Flo of (Dec. Araaunf :......:'otal aver I9190-91 General Government $362,650 16.5 % $393,621 18.3 % 2.6 % Public Safety 931,441 42.4 830,411 38.5 12.2 Physical Environment 101,512 4.5 99,989 4.6 1.5 Transportation 249,736 11.4 311,383 14.4 (19.8) Economic Development 11,817 .6 9,283 .4 27.3 Human Services 13,650 .8 13,665 .7 (.1) Culture & Recreation 438,956 20.0 435,748 20.2 .7 Transfers -Out 84,526 M 61,752 2,9 12,194,288 100.00 2 155 852 1 Page 5 Expenditures and other financing uses increased 1.8 % Without considering transfers - out, expenditures increased .7%. The only significant changes in expenditures occurred in the transportation and public safety functions. The primary reason for the transportation decrease was the existence of a' one-time joint public/private road project in the 1990-91 fiscal year. Public Safety expenditures increased 12,2% primarily due to the recognition of an additional required police pension contribution of $64;183. SPECIAL REVENUE FUNDS INFRASTRUCTURE FUND The Infrastructure Fund was established to account for the City's share of the Local Government Infrastructure Surtax, which can be used only for fixed capital outlay. The surtax represents a county -wide one cent increase in the sales tax until the end of the fiscal year 2002. A comparison of Local Government Infrastructure Surtax Revenue for the last three fiscal years is presented as follows: 1 1- 2 1990-91 1989-90 Local Government Infrastructure Surtax $326,504 $300,154 $370,639 Included in the 1989-90 revenue amount was an adjustment of $50,857 for prior year collections due to an incorrect formula used by the State of Florida in calculating distributions.. Infrastructure Surtax Funds were primarily expended on replacing the lighting systems at various City recreational parks. In addition, funds were also transferred to the Sales Tax Revenue Bond Sinking Fund to cover the debt service of the 1989 Sales Tax Bond Issue. The Local Government infrastructure Surtax has been pledged as the primary source of revenue to repay the bonds. IMPACT FEE FUN The Impact Fee Fund was established to account for the Police, Fire and Recreation Impact Fees paid by developers. The impact fees were adopted. by the City in May 1991 to require new development to pay its proportionate fair share of the capital costs necessary to accommodate new development impacts on Police, Fire and Recreation Services. No impact fees were expended during the 1991-92 fiscal year. A comparison of the impact fees collected -the last two fiscal -years is as follows: Page 6 19 1- 2 1 - 1 Police $3,000 $222 Fire 2,748 270 Recreation 10,743 2.493 16 491 L,2,985 BLOCK GRANT FUND The City received a $575,000 Community Development Block Grant from the U.S. Department of Housing and Urban Development during the 1991-92 fiscal year. The grant is administered through the Florida Department of Community Affairs. The grant provides fiends for low income residents to bring their homes up to minimum property standards. During the 1991-92 fiscal year, the City received $220,003, while expending $35,230. DEBT SERVICE FUND The Sales Tax Revenue Bond Sinking Fund is maintained to account for the accumulation of resources and the payment of debt service on the 1989 Sales Tax Revenue Bond. The bond was issued to provide funds for the development of the Palatlakaha Recreation Area and construction of a new Public Services Complex and Public Safety Building. CAPITAL PROJECTS FUNDS PALATLAKAHA RECREATION AREA F ND This fund was created to account for the development of the Palatlakaha Recreation Area. With the completion of Phase II in the 1991-92 fiscal year, the recreation area is fully developed. The $1,800,000 recreation area was funded primarily from the 1989 Sales Tax Revenue Bond proceeds, Florida Department of Natural Resources grants, and Local Government Infrastructure Surtax revenue. BUILDING CONSTRUCTION FUND This fund was established to account for the construction of a new Public Services Complex and a Public Safety Building. The Public Services Complex was completed in the 1991-92 fiscal year at a total cost of $645,000. The Public Safety Building is currently under construction and is estimated to be completed in July 1993. Funding for these projects is obtained from the 1989 Sales Tax Revenue Bond proceeds. Page 7 UTILITY FUND The Utility Fund accounts for the provision of water and sewer services to the residents of the City. Operating revenues incr€:ased 7.3 % from. $1,062,790 to $1,140,249 primarily due to a corresponding increase in water and sewer rates. The water and sewer rate adjustments were the first since 1982 and 1986, respectively. The adjustments were necessary partly due to reduced consumption and the practice of transferring a portion of water sales to the General Fund. Operating expenses remained relatively unchanged. Comparative data for the last three years is illustrated in the following table: 1. 91-22 9990-9] 1989-90 Operating Revenues $15140,249 $1,062,790 $1,092,768 Operating'Expenses 927.01 997,402 ._70,040 Operating Income 142.654 _ 65.388 122,728 Net Fixed Assets $7,876,609$ 0651155 $ 16 ,3�16 Debt Service Coverage 1.22% % 1.10 ANITATIQN FUND The Sanitation Fund accounts for the provision of garbage, trash removal, recycling, and composting services to the residents of Clermont. Operating revenues increased 5.8% from $435.,835 to $461,060 due to a corresponding increase in monthly sanitation rates. The rate adjustment was necessary due to a 56% increase in garbage disposal fees charged by Lake County. The disposal fee increase was partly offset by the continued operation of the City's garbage recycling and composting programs. Through these program, plastic bottles, glass containers, —aluminum -cans and- compostable- plant- materials- are `removed- from- the waste stream which consequently results in decreased garbage disposal fees. Page 8 The City disagrees with Lake County over the amount charged for disposal of its solid waste at the County's incinerator. As a result, during the 1991-92 fiscal year the City began withholding an amount which it believes is being overcharged. The amount withheld as of September 30, 1992 is $34,943. The City has established a separate escrow account to accumulate this amount. Comparative data for the last three fiscal years is illustrated in the following table: 1991-92 199 - 1 1 9- Operating Revenues $461,060 $435,835 $385,276 Operating Expenses 412,477 419,410 9 777 Operating Income (Loss) 148,583 16,425 4 501 STORMWATER UTILITY FUND The City created a Stormwater Utility Fund in order to account for the maintenance and improvement of the City's stormwater drainage system. The stormwater utility fee is charged to all property owners/tenants throughout the City and is based on the impervious area of their property. A portion of the annual revenue is used for the maintenance of the existing system. The remaining funds are earmarked for the cost of a stormwater drainage master plan to be performed in the future. Comparative data for the last two fiscal years is illustrated in the following table: 1991-92 1990-91 Operating Revenues $141,650 $140,185 Operating Expenses 73,732 58,630 Operating Income (Loss) . 67 918 $81,555 INTERNAL SERVICE FUND The City maintains a Group Self -Insurance Fund to account for the accumulation of resources and the payment of insurance claims pertaining to the employee health, dental and life insurance coverages. The modified Self -Insurance Program is responsible for health and dental claims up to $25,000 per employee and $192,500 for the entire group. Reinsurance provides coverage in excess of the City's limits up to $1,000,000 per employee. Life Insurance coverage is in the face amount of one and one-half times the employee's salary. Page 9 TRUST AND AGENCY FUNDS Trust and Agency Funds account for assets held by the City as Trustee for individuals, private organizations and other governmental units and/or funds. The General Employees', Police Officers' and Volunteer Firefighters' Pension Trust Funds account for the accumulation of resources to be used for the retirement annuities of all city employees. The Cemetery Perpetual Care Trust Fund accounts for monies received from people buy-ing lots in the city cemetery. The principal must be kept intact, but the interest may be transferred to the General Fund to defray the cost of cemetery operation and maintenance. The Employees' Deferred Compensation Agency Fund accounts for money earned by employees but voluntarily deferred until some future time period. GENERAL FIXED ASSETS The general fixed assets of the City of Clermont are those fixed assets used in the performance of general governmental functions and exclude the fixed assets of the Proprietary. Funds. As of September 30, 1992, the general fixed assets of the City totalled $6,561,712. This amount represents the original cost of the assets and is, therefore, considerably less than their present value. Depreciation of general fixed assets is not recognized in the City's accounting system. CASH MANAGEVMNT The City earned $279,962 or 5.8 % of toW revenue from all funds, with the exception of the Pension and Deferred Compensation Funds, in interest avenue during the 1991-92 fiscal year. The weighted average rate of return during t991-92 was approx- imately 5.54%. The following table shows the breakdown of interest by source: Perccrt Avg. of Rate of Amount i2i Return State Board of Administration $156,859 56.0% 4.75% Certificates of Deposit 94,237 33.7% '7.02% Mutual Fund 17,383 6.2 % 5.95 % Repurchase Agreements 3.48 % 27 62 1® Page 10 The City maintains the majority of its funds with the Florida State Board of Administration investment Pool. The pool is managed by the State of Florida and is available to any governmental agency within the State. The major advantage the pool offers to small cities such as Clermont, is the higher rate of return from the large amount of funds available to invest. The funds in the pool are very liquid in that access is available on a daily basis. During the fiscal year, the City placed approximately $1,000,000 in a mutual fund secured by U.S. Government Securities. The funds placed were long-term reserves not expected to be utilized for the next five to seven years. The City had placed $1,900,000 in Certificates of Deposit with local qualified public depositories during the 1991-92 fiscal year. As of September 30, 1992 all Certificates of Deposit had matured and funds were deposited with the State Board of Administration or the U.S. Government Securities Mutual Fund. The City has a Banking Service Agreement with a local qualified public depository that provides that all funds in excess of a compensating balance will earn interest through overnight repurchase agreements. The agreement provides that a specific rate of return based on the bank's federal funds rate and amount of excess funds will be earned and credited to the City's account on a daily basis. DEBT ADMINISTRATION The City had one (1) long-term note and two (2) Water and Sewer Revenue Refunding Bond Issues and one (1) Sales Tax Revenue Bond Issue outstanding on September 30, 1992. The long-term note was obtained in 1980 to finance the construction of the library building. The Water and Sewer Revenue Refunding Bonds were issued in 1972 and 1988 and are secured by the gross revenues of the water and sewer system. The Sales Tax Revenue Bond was issued in 1989 to provide funding for the development of the Palatlakaha Recreation Area and construction of a new Public Services Complex and Public Safety Building. RISK MANAGEMENT The City maintains liability and Workmen's Compensation Insurance through programs sponsored and administered by the Florida League of. Cities. The limit of protection for the liability coverage is $1,500,000 per occurrence. The City is not aware of any pending or threatened litigation which would not be covered by insurance. Page 11 FINANCIAL POST I ION AND FUTURE PROSPECTS Through the conservative leadership of the City Council, the City of Clermont continues to maintain a sound financial position while providing excellent levels of service for all residents. A recent survey of Centrai Florida cities indicates that, the City of Clermont's service fees are very favorable when compared to other governmental units providing, similar services and our ad valorem rate is one of the lowest in Lake County and in Central Florida. These factors along with Clermont's natural beauty makes Clermont an attractive place to live and work.. The recession continued into 1992 which was evidenced by decreased building activity and postponement of some proposed projects. As Florida emerges from the recession, City, County, and regional planners predict unprecedented growth in South Lake County and in the City. Clermont will receive increased demands for service outside of the City limits as Lake Caunty :permits new development in the outlying areas and could become a regional supplier of water, sewer, and. other services. Although the City is in excellent financial condition, we roust continue to monitor our revenue sources and maintain a conservative attitude with regards to budgeting in order to be in a position to provide necessary, services to the City and the region. The City has adequate reserves which will provide stability in the future for firnding of growth related service requirements. Through sound management practices and adequate short and long range planning, we will be able to continue to provide an excellent standard- of living at an affordable cost for the residents of Clermont. CERTIFICATE OF ACME'dEMEENT The Government Finance Officers Association of the United States and Canada. (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Clermont, Florida, for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 1991. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Clermont has received a Certificate of Achievement for the last four consecutive fiscal years. We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to GFOA.. Page 12 INDEPENDENT AUDIT Florida Statutes and the City Charter require an annual financial audit of the financial statements of the City of Clermont by an independent certified public accountant selected by the City Council. This requirement has been satisfied and the Auditor's unqualified opinion has been included in this report. ACKNOWLEDGEMENTS The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the staffs of the City Manager's office, Planning Department and Finance Department. I would also like to thank the Mayor and members of the City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, �G- .. ne Saunders City Manager Jo h E. Van e inance Director Page 13 THIS PAGE INTENTIONALLY LEFT BLAND 14 City of Clermont Organizational Chart Citizens 15 CITY OF CLERMONT, FLORIDA LISTING OF CITY OFFICIALS AS OF SEPTEMBER 30, 1992 ELECTED OFFICIALS Mayor Robert A. Pool Mayor/Pro-Tem Hal Turville Councilmember Edward Ivey Councilmember Ken Norquist Councilmember Lester Cole APPOINTED OFFICIALS City Manager City Attorney Finance Director Public Services Director Chief of Police Fire Chief City Engineer Planning Director 16 Wayne Saunders Leonard H. Baird, Jr. Joseph E. Van Zile Preston Davis Prentice Tyndal Carle Bishop John Springstead Lanny Harker 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, 1991 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. �GG it.� Y i MlllD pit u �► art; President nr,•• cuts Director 17 THIS PAGE INTENTIONALLY LEFT BLANK 18 FINANCIAL SECTION This Section Contains the Following Subsections: INDEPENDENT AUDITOR'S REPORT GENERAL PURPOSE FINANCIAL STATEMENTS COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS INDEPENDENT AUDITOR'S REPORT GREENLEE KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS CLERMONT: Herbert John Greenlee, Jr., C.P.A Jerry D. Brown, C.P.A. MOUNT DORA: INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and City Council City of Clermont, Florida Dorothy A. Kurras, C.P.A. John S. Rice, C.P.A. Patricia A. Sykes, C.P.A C. L. (Chip) Garner, C.P.A. John A. Powers, C.P.A. Mark A. Fanner, C.P.A. We have audited the general purpose financial statements of the City of Clermont, Florida, as of and for the year ended September 30, 1992, as listed in the accompa- nying table of contents. These general purpose financial statements are the re- sponsibility of the City's management. Our responsibility is to express an opin- ion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall finan- cial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Clermont, Florida, at September 30, 1992, and the results of its operations and its cash flows in its proprietary and nonexpendable trust fund for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and individual account group financial statements and schedules listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Clermont, Florida. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. Clermont, Florida December 6, 1992 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 19 752 Montrose Street 627 N. Donnelly Street Post Office Box 120400. Clermont, FL 34712-0400 Post Office Box 8. Mount Dora, FL 32757 Telephone: (904) 394-3256 Telephone: (904) 383-6300 THIS PAGE INTENTIONALLY LEFT BLANK 20 GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements -Overview) These basic financial statements provide a summary overview of the financial position of all funds and account groups as well as the operating results of all funds. They also serve as an introduction to the more detailed statements and schedules that follow in the next Subsection. THIS PAGE INTENTIONALLY LEFT BLANK 21 ASSETS AND OTHER DEBITS --------------- b Cash and cash equivalents Investments Receivables: Interest Accounts Assessments Other Interfund receivables Due from other governments Inventory Restricted Assets: Cash and cash equivalents Land Buildings Water System Sewer system Improvements other than buildings Machinery and equipment Accumulated depreciation Other Debits: Amount available for principal in debt service fund Amount to be provided for retirement of general long-term debt TOTAL ASSETS CITY OF CLERMONT, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1992 GOVERNMENTAL FUND TYPES PROPRIETARY SPECIAL DEBT CAPITAL GENERAL ------- REVENUE ------- SERVICE ------- PROJECTS -------- ENTERPRISE ---------- S 685,505 $ 239,025 $ 83,447 $ 483,057 $ 1,521,106 512,655 ... ... 504,729 12,774 ... ... 153,700 ... ... 1,248 1,681 ... ... ... 133,738 39,197 46,256 10,020 10,546 ... ... 20,318 ... 1,440,034 ••• .•• 927,606 ••• ... ... 3,449,265 ••• ... 6,369,826 ••• ... ... 707,197 ••• ••. ... (3,378,146) ----------------------------- ----------------------- $ 1,262,358 $ 285,281 $ 83,447 $ 483,057 $ 11,860,641 The notes to the financial statements are an integral part of this statement. 22 FIDUCIARY FUND TYPES FUND TYPES ---------- ----------- TRUST INTERNAL AND SERVICE AGENCY ACCOUNT GROUPS ----------------------- GENERAL GENERAL FIXED LONG-TERM ASSETS DEBT $ 132 $ 8,645 $ $ ... 2,364,726 3,049 ... ... 65,565 ... ... 806,732 ... 1,613,306 ... 3,038,571 ... 1,103,103 ... ------------ -------- $ 3,181 $ 2,438,936 ... 41,666 ... 1,856,313 ----------- ----------- $ 6,561,712 $ 1,897,979 23 TOTALS (MEMORANDUM ONLY) ----------------------------- 1992 1991 $ 3,020,917 $ 1,839,890 3,382,110 4,021,119 ... 17,070 169,523 178,194 ... 29,469 1,248 1,073 200,984 158,413 95,473 66,034 30,864 26,309 1,440,034 1,450,726 1,734,338 1,734,338 1,613,306 1,276,264 3,449,265 3,449,265 6,369,826 6,369,826 3,038,571 2,808,533 1,810,300 1,656,693 (3,378,146) (3,078,404) 41,666 40,000 1,856,313 1,982,396 ------------------------ S 24,876,592 $ 24,027,208 Continued CITY OF CLERMONT, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1992 GOVERNMENTAL FUND TYPES PROPRIETARY -------------------------------------------------------------- SPECIAL DEBT CAPITAL LIABILITIES, EQUITY, AND OTHER CREDITS GENERAL REVENUE SERVICE PROJECTS ENTERPRISE ------------------------------------------------------------------- Liabilities: Accounts payable $ 15,643 $ 24,144 $ $ 303 $ 18,965 Other accrued expenses/deferred revenue 19,489 ... ... ... 30,748 Contracts payable 12,991 41,526 .. Mortgage payable .. Payable From Restricted Assets: Deposits ... ... ... ... 51,307 Accrued interest ... 82,842 Revenue bonds ... ... ... ... 110,000 Interfund payables 64,907 23,408 ... ... 103,898 Deferred compensation payable ... ,. Revenue bonds payable ... ----------- ... --------- ... ... 3.135,000 Total Liabilities 100,039 ----------- 60,543 --------- --------- ... --------- ----------- 41,829 ----------- ------------ 3,532,760 ------------ Equity and Other Credits: Contributed capital 2,722,284 Investment in general fixed assets ... Retained Earnings: Reserved ... ... ... ... 1,285,747 Unreserved ... ... ... ... 4,319,850 Fund Balances: Reserved for police education 9,253 ... Reserved for inventory 10,547 ... ... Reserved for recreation 18,607 ... Reserved for cemetery care ... .. Reserved for debt service ... ... 83,447 Reserved for employees, retirement systems ,,. Unreserved, designated for capital replacement 83,935 ... ... .. Unreserved, undesignated 1,039,977 ----------- 224,738 --------- ... 441,228 ... Total Equity --------- ----------- ------------ and Other Credits 1,162,319 ----------- 224,738 --------- 83,447 --------- 441,228 ----------- 8,327,881 ------------ TOTAL LIABILITIES, EQUITY, AND OTHER CREDITS $ 1,262,358 $ 285,281 $ 83,447 $ 483,057 $ 11,860.641 The notes to the financial statements are an integral part of this statement. 24 FIDUCIARY FUND TYPES FUND TYPES ---------- ---------- ACCOUNT GROUPS --------------------------- TRUST GENERAL GENERAL INTERNAL AND FIXED LONG-TERM SERVICE AGENCY ------- ------ ASSETS DEBT ------ ---- TOTALS (MEMORANDUM ONLY) ----------------------------- 1992 1991 $ 9,779 $ $ $ $ 68,834 $ 117,791 „ 50,237 72,062 ... ... ... 54,517 6,582 57,979 57,979 62,396 51,307 42,442 82,842 85,268 110,000 105,000 8,587 184 200,984 158,413 ... 59,243 ... ... 59,243 52,273 ... ... ... 1,840,000 4,975,000 5,205,000 18,366 59,427 ... 1,897,979 5,710,943 5,907,227 ---------------------------- ----------- ------------ ------------ (15,185) ... 185,670 ... 2,193,839 -------------------- (15,185) 2,379,509 $ 3,181 $ 2,438,936 $ 6,561,712 $ 1,897,979 2,722,284 2,667,107 6,561,712 5,939,635 1,285,747 1,218,016 4,304,665 4,215,242 9,253 6,554 10,547 4,098 18,607 18,607 185,670 173,970 83,447 83,969 2,193,839 1,923,923 83,935 83,935 1,705,943 1,783,925 19,165,649 18,119,981 $ 24,876,592 $ 24,027,208 25 THIS PAGE INTENTIONALLY LEFT BLANK M. CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1992 Revenues: Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Miscellaneous revenues Total Revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Debt service: Principal Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfer out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Uses Fund Balances - October 1 FUND BALANCES - SEPTEMBER 30 TOTALS GOVERNMENTAL FUND TYPES (MEMORANDUM ONLY) --------------------------------------------------- -------------------------- SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS 1992 1991 ----------------------------- ---- ---- $ 1,349,613 $ 326,504 $ ... $ ... $ 1,676,117 $ 1,281,612 41,127 ... ... ... 41,127 28,917 501,507 220,003 ... 112,500 834,010 786,966 32,676 ... ... ... 32,676 19,327 90,039 ... ... ... 90,039 69,571 123,103 ----------- 16,827 ---------- 3,548 --------- 36,725 ----------- 180,203 ----------- 273,112 ----------- 2,138,065 ----------- 563,334 ---------- 3,548 --------- 149,225 ----------- 2,854,172 ----------- 2,459,505 ----------- 362,650 35,230 397,880 440,789 931,441 ... 931,441 830,411 101,512 ... ... 101,512 99,989 249,736 ... 249,736 330,476 11,817 ... 11,817 9,283 13,650 ... 13,650 13,665 438,956 64,808 ... ... 503,764 435,748 503,145 503,145 758,623 120,000 ... 120,000 110,000 134,591 ... ----------- 134,591 ----------- 141,573 ----------- ----------- 2,109,762 ----------- ---------- 100,038 ---------- --------- 254,591 --------- 503,145 ----------- 2,967,536 ----------- 3,170,557 ----------- 28,303 463,296 (251,043) (353,920) (113,364) (711,052) 62,263 ... 250,521 122,026 434,810 480,885 (84,526) ----------- (250,521) ---------- ... --------- (55,755) ----------- (390,802) ----------- (490,886) ----------- (22,263) ----------- (250,521) ---------- 250,521 --------- 66,271 ----------- 44,008 ----------- (10,001) ----------- 6,040 212,775 (522) (287,649) (69,356) (721,053) 1,156,279 ----------- 11,963 ---------- 83,969 --------- 728,877 ----------- 1,981,088 ----------- 2,702,141 ----------- $ 1,162,319 $ 224,738 $ 83,447 $ 441,228 $ 1,911,732 $ 1,981,088 The notes to the financial statements are an integral part of this statement. 27 CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, DEBT SERVICE, AND CAPITAL PROJECT FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1992 Revenues: Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Miscellaneous revenues Total Revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Debt service Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Fund Balances - October 1 FUND BALANCES - SEPTEMBER 30 GENERAL FUND ------------------------------------------ VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ------ ------------------- S 1,316,178 $ 1,349,613 $ 33,435 27,900 41,127 13,227 496,400 501,507 5,107 164,900 178,076 13,176 56,000 90,039 34,039 130,344 ----------- 123,103 ---------------------- (7,241) 2,191,722 ----------- 2,283,465 ---------------------- 91,743 541,603 505,142 36,461 862,500 931,441 (68,941) 110,175 104,420 r 5,755 292,203 249,736 42,467 10,615 11,817 (1,202) 13,737 13,650 87 467,205 438,956 28,249 ----------- 2,298,038 ----------- ---------------------- 2,255,162 ---------------------- 42,876 (106,316) ----------- 28,303 ---------------------- 134,619 63,804 62,263 (1,541) (84,663) ----------- (84,526) ----------- 137 (20,859) ----------- ----------- (22,263) ----------- ----------- (1,404) (127,175) 6,040 133,215 1,156,277 ----------- 1,156,279 ----------- $ 1,029,102 ----------- $ 1,162,319 $ 133,215 The notes to the financial statements are an integral part of this statement. 28 SPECIAL REVENUE FUND DEBT SERVICE FUND ----------------------------------- ---------------------------------------- CAPITAL PROJECTS FUND ----------------------------------------- VARIANCE VARIANCE VARIANCE FAVORABLE FAVORABLE FAVORABLE BUDGET ------ ACTUAL ------ (UNFAVORABLE) ------------- BUDGET ------ ACTUAL ------ (UNFAVORABLE) ------------- BUDGET ------ ACTUAL ------ (UNFAVORABLE) ------------- $ 306,000 $ 326,504 $ 20,504 $ S $ $ $ $ ... 112,500 112,500 22,000 ----------- 44 ----------- (21,956) ----------- 5,000 --------- 3,548 --------- (1,452) --------- ----------- 44,500 36,725 ----------- (7,775) ----------- 328,000 ----------- 326,548 ----------- (1,452) ----------- 5,000 --------- 3,548 --------- (1,452) --------- ----------- 157,000 149,225 ----------- (7,775) ----------- 82,000 64,808 17,192 ... ... ... ... ... ... ... ... ... ... 734,863 503,145 231,718 ... ----------- ... ----------- 255,022 --------- 254,591 --------- 431 -------------------- ... ... ----------- ... ----------- ----------- 82,000 ----------- 64,808 ----------- 17,192 ----------- 255,022 --------- 254,591 --------- 431 --------- ----------- 734,863 503,145 ----------- 231,718 ----------- 246,000 ----------- 261,740 ----------- 15,740 ----------- (250,022) --------- (251,043) --------- (1,021) -------------------- (577,863) (353,920) ----------- 223,943 ----------- 250,022 250,521 499 122,163 122,026 (137) (250,022) ----------- (250,521) ----------- (499) ----------- ... --------- ... --------- ... -------------------- (57,604) (55,755) ----------- 1,849 ----------- (250,022) ----------- (250,521) ----------- (499) ----------- 250,022 --------- 250,521 --------- 499 -------------------- 64,559 66,271 ----------- 1,712 ----------- (4,022) 11,219 15,241 ... (522) (522) (513,304) (287,649) 225,655 8,953 8,953 ... 83,969 83,969 ... 728,877 728,877 ... ----------- $ 4,931 ----------- $ 20,172 ----------- $ 15,241 --------- $ 83,969 --------- $ 83,447 --------- ----------- $ (522) $ 215,573 ----------- $ 441,228 ----------- $ 225,655 29 CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1992 PROPRIETARY ENTERPRISE Operating Revenues: ---------- Charges for services $ 1,742,959 Investment earnings Contributions " ' Cemetery lot sales " ' Sale of recycled materials 7,850 Reimbursements Rent " ' Total Operating Revenues 1-----809 Operating Expenses: ----------- Personal services 508,500 Utilities 139,495 Landfill 106,987 Administrative services 145,400 Repair and maintenance 87,053 Depreciation 299,741 Professional services 52,440 Insurance 62,383 Operating supplies 60,168 Office expense 18,536 Bad debt expense 3,101 Benefit payments Refunds Trustee/administrative fees " ' Medical claims Total Operating Expenses 1,483,804 Operating Income (Loss) 267,005 Nonoperating Revenues (Expenses): ----------- Interest revenue 156,185 Interest expense (231,163) Grants 10,020 Total Nonoperating Revenues (Expenses) (64,958) Income Before Operating Transfers 202,047 Operating Transfer In Operating Transfer (out) (44,068) Net Income 158,039 Retained Earnings/Fund Balances - October 1 5,447,558 RETAINED EARNINGS/FUND BALANCES - SEPTEMBER 30 $ 5,605,597 The notes to the financial statements are an integral part of this statement. 30 TOTALS FUND TYPES FIDUCIARY FUND TYPES (MEMORANDUMS ONLY) ---------- ------------------------------ ----------------------------- INTERNAL PENSION NONEXPENDABLE SERVICE TRUST TRUST 1992 1991 ------- ----- ----- ---- ---- $ 206,285 $ $ $ 1,949,244 $ 1,848,699 ... 203,538 ... 203,538 331,685 ... 140,972 140,972 127,157 ... ... 11,700 11,700 13,950 .. ... ... 7,850 4,381 10,479 ... ... 10,479 34,881 ... ... 2,502 ----------- 216,764 ----------- ----------- 344,510 ----------- ----------- 11,700 ----------- ----------- 2,323,783 ----------- ----------- 2,363,255 ----------- ... ... 508,500 509,448 ... 139,495 141,650 ... ... 106,987 109,545 ... ... 145,400 99,543 ... ... 87,053 116,259 ... 299,741 280,237 ... 52,440 79,019 54,613 ... 116,996 110,539 ... 60,168 64,728 ... ... ... 18,536 15,762 ... 3,101 2,525 80,139 ... 80,139 62,012 29,874 ... 29,874 14,530 11,023 28,746 ... 39,769 37,656 153,206 ... ... 153,206 201,253 ----------- 218,842 ----------- 138,759 ----------- ... ----------- 1,841,405 ----------- 1,844,706 ----------- (2,078) ----------- ----------- 205,751 ----------- ----------- 11,700 ----------- ----------- 482,378 ----------- ----------- 518,549 ----------- 193 ... 156,378 219,631 ... ... (231,163) (241,253) ... ... 10,020 41,718 ----------- 193 ----------- ... ----------- ... ----------- (64,765) ----------- 20,096 ----------- (1,885) ----------- 205,751 ----------- 11,700 ------------ 417,613 ----------- 538,645 ... ... ... 10,000 ... ----------- ... ----------- ... ----------- (44,008) ----------- ... ----------- (1,885) (13,300) $ (15,185) 205,751 1,923,923 $ 2,129,674 11,700 173,970 $ 185,670 31 373,605 7,532,151 $ 7,905,756 548,645 6,983,506 $ 7,532,151 CITY OF CLERMONT. FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1992 FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE (MEMORANDUMS ONLY) ---------------------- ------------- ----------------------- INTERNAL NONEXPENDABLE ENTERPRISE SERVICE TRUST 1992 1991 ------------------ ------------- ---- ---- Cash Flows From Operating Activities: Cash received from customers Cash payments to suppliers Cash payments for employee services Cash payments for medical claims Net Cash Provided By Operating Activities Cash Flows From Noncapital Financing Activities: Operating transfer out Operating transfer in Grants Net Cash Provided (Used) by Noncapital Activities Cash Flows From Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid on revenue bonds Interest paid on revenue bonds Contributed capital Net Cash Provided (Used) By Capital and Related Financing Activities Cash Flows From Investing Activities: Interest Investment purchases Net Cash Provided (Used) By Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year $ 1,768,636 $ 228,269 $ 11,700 (685,969) (65,636) ... (503,866) ... ... ,.. (162,694) ----------------------------- 578,801 (61) 11,700 -------------------- --------- $ 2,008,605 $ 1,855,339 (751,605) (753,363) (503,866) (506,415) (162,694) (189.919) 590,440 405,642 ------- ----------- (44,008) (44,008) ... ... 10,000 ••• ... 17,718 (44,008) ... ... (44,008) 27,718 ------- ---------------------------------------- (98,610) ... ... (98,610) (307,512) (105,000) ... (105,000) (95,000) (233,589) ... (233,589) (243,429) 55,178 -------------------- ... --------- 55,178 ---------------------- 18,996 (382,021) ----------- --------- ... ... --------- (382,021) ----------- ----------- (626,945) 162,875 193 ... 163,068 222,043 (504,729) ----------- --------- ... ... --------- (504,729) ---------------------- ... (341,854) -------------------- 193 ... --------- (341,661) ---------------------- 222,043 (189,082) 132 11,700 (177,250) 28,458 3,150,222 -------------------- ... 173,970 --------- 3,324,192 ----------- ----------- 3,295,734 $ 2,961,140 $ 132 $ 185,670 $ 3,146,942 $ 3,324,192 The notes to the financial statements are an integral part of this statement. 32 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Change in Assets and Liabilities: Decrease (Increase) in receivables Decrease in inventory Increase in accrued expenses Increase (Decrease) in payables Total Adjustments Net Cash Provided (Used) by Operating Activities: FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE (MEMORANDUMS ONLY) ---------------------- ------------- ----------------------- INTERNAL NONEXPENDASLE ENTERPRISE SERVICE TRUST 1992 1991 ------------------ ------------- ---- ---- $ 267,006 $ (2,078) $ 11,700 $ 276,628 $ 166,527 -------------------- ------------------------------- 299,741 ... 299,741 280,237 9,166 6,951 ... 16,117 (67,444) 1,893 ... 1,893 3,329 4,634 ... 4,634 2,203 (3,639) -------------------- (4,934) ... --------- (8,573) ---------------------- 20,790 311,795 ----------- --------- 2,017 ... --------- 313,812 ---------------------- 239,115 $ 578,801 $ (61) $ 11,700 $ 590,440 $ 405,642 33 THIS PAGE INTENTIONALLY LEFT BLANK 34 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies: The City of Clermont, Florida was incorporated December, 1916, under the laws of the State of Florida and operates under the Council-manager form of govern- ment under its charter adopted pursuant to H.B. 2223 ch 67 - 1217, Special Acts 1967, of the State of Florida. The financial statements of the City of Clermont, Florida have been prepared in conformity with generally accepted accounting principles as applicable to governments. The following is a summary of the City's more significant accounting policies A. Reporting Entity - The financial statements of the City include all funds and account groups that are controlled by or dependent on the City. The City did not have any oversight responsibilities with respect to a component unit, a separate governmental unit, agency or nonprofit corporation, which would require the inclusion of the component unit's financial statements with the City's financial statements. The basic criterion for including a component unit within the City's reporting entity is the exercise of oversight responsibility. The specific criteria used by the City to establish oversight responsibility are: MANIFESTATIONS OF OVERSIGHT RESPONSIBILITY 1. Selection of governing authority 2. Designation of management 3. Ability to significantly influence operations ACCOUNTABILITY FOR FISCAL MATTERS 1. Budgetary authority 2. Responsibility for debt 3. Fiscal management Factors other than oversight which may significantly influence the entity relationship are: 1. Scope of public service 2. Special financing relationships Based upon the application of these criteria, the following is a brief review of each potential component unit addressed in defining the City's reporting entity. 35 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Included within the reporting entity: The City of Clermont Employees' Retirement Systems The City's general employees, police officers, and volunteer firemen participate in the City's Employees Retirement Systems. These systems function for the benefit of the employees and are governed by a seven- member pension board which is made up of the five members of the City Council and a representative of the police department and the volunteer fire department respectively. The City and retirement system participants are obligated to fund all retirement system costs based on actuarial valuations. The City is authorized to establish benefit levels. Excluded from the reporting entity: Lake Apopka Natural Gas District The Lake Apopka Natural Gas District was established on June 20, 1959 by a special act of the Florida legislature. The City of Clermont is one of three member municipalities and is entitled to appoint one member to the Board of Commissioners of the district. The Board of Commissioners is empowered to make monetary distributions to the member municipalities of net current assets that have not been reserved or designated for capital expansion. The City of Clermont has no legal obligation on District debt or deficits nor does it significantly influence the operation of the District. Cooper Memorial Library The Cooper Memorial Library is located within the city limits and provides service to the residents of the City. The City holds title to the library building and makes the annual mortgage note payment. The City also makes an annual contribution to the Library. The Library Board selects and hires management staff, establishes the budget, and is responsible for the operation of the Library. The City does not appoint any of the Board members. South Lake County Hospital Tax District The South Lake Hospital Tax District operates South Lake Hospital which is located within the City and provides service to residents of the City. The tax district has a separate elected board. The City Council has no ability to exercise influence in daily operations, approve budgets, or provide funding. 1F CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS B. Fund Accounting - The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenue and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds and account groups of the City are as follows: Governmental Funds - 1. General Fund - To account for all financial resources except those required to be accounted for in another fund. 2. Special Revenue Fund - To account for the proceeds of specific revenue sources (other than special assessments, expendable trusts or for major capital projects) that are legally restricted to expenditure for specified purposes. 3. Debt Service Fund - To account for the accumulation of resources for, and the payment of, general long term debt principal, interest and related cost. 4. Capital Projects Funds - To account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds.) Proprietary Funds - ` 1. Enterprise Funds - 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 had 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. 2. Internal Service Fund - To account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost -reimbursement basis. Fiduciary Funds - Trust and Agency Funds - To account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. These include pension trust and agency funds. Pension trust funds are accounted for in essentially the same manner as Proprietary Funds, since capital maintenance is critical. Agency Funds are purely custodial (assets equal liabilities) and thus, do not involve measurement of results of operations. 37 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Account Groups - General Fixed Asset Account Group - is used to maintain control and cost information for all fixed assets other than those accounted for in the Proprietary and Nonexpendable Trust Funds. General Long -Term Debt Account Group - is used to record the outstanding long-term obligations not otherwise recorded in Proprietary, Nonexpendable Trust and Pension Trust Funds. C. Basis of Accounting - The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating state- ments of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. The modified accrual basis of accounting is used by all governmental fund types and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available,) "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to. pay liabilities of the current period. The government considers property taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. All major revenues, except property taxes and licenses, are considered measurable and available and, as such, susceptible to accrual. The accrual basis of accounting is utilized by proprietary fund types, pension trust funds and nonexpendable_trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Encumbrance accounting is not used by the City. 18 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS D. Budgets The City follows these procedures in establishing the budgetary data re- flected in the financial statements: 1. Prior to August 31, the City Manager submits to the City Council the 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. Public hearings are conducted to obtain taxpayer comments. 3. Prior to October 1, the budget is legally enacted through passage of an ordinance. The legal level of budgetary control is the department level. Administrative control is maintained at the object level through integration with the accounting records. Appropriations lapse at the end of each fiscal year. In'the general fund, the following departments had an excess of expenditures over appropriations: executive ($13), legal ($590), other general government ($361), law enforcement ($66,534), fire control ($2,407), and economic development ($1,202.) The large excess in law enforcement is due to a subsequent event requiring additional City contri- butions to the pension fund. Budgets are prepared on a basis consistent with generally accepted accounting principles (GAAP) for the infrastructure fund and the non - expendable trust fund. The general fund's non-GAAP basis budget includes reimbursements from other funds as revenues rather than as reductions of expenditures. The enterprise funds' budgets are prepared on a non-GAAP basis as depreciation in the utility fund is not budgeted while debt principal payments and capital additions are budgeted as expenses in all enterprise funds. The City Manager is authorized to transfer budgeted amounts within departments within any fund. However, any revisions that alter the total expenditures of a department must be approved by the City Council. Budget amounts are reported as originally adopted or revised. A schedule summarizing budget revisions by fund is presented in notes to the financial statements No. 2. Budgets are not adopted for the impact fee, block grant, internal service and trust and agency funds. Budget amounts for the general, infra- structure, debt service and capital project funds are reported in the combined financial statements. A comparison of budgeted and actual (budgetary basis) expenses in the enterprise funds is shown in notes to financial statements No. 2. E. Assets, Liabilities and Fund Equity 1. Cash, Cash Equivalents, and Investments - For purposes of cash flows cash includes amounts in demand deposits as well as short-term 39 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS investments with a maturity date within three months of the date acquired by the government. Investments are stated at cost or amortized cost, except for investments in the deferred compensation agency fund which are reported at market value. 2. Accounts Receivable From Other Governments - Those amounts that represent a claim against another government, and are measurable, have been accrued. 3. Receivables - The Water and Sewer System maintains the direct write-off method of bad debt recognition due to the immateriality of the amounts. The City has no concentrations of credit risk. 4. Inventories - Inventories are priced at cost using the first -in, first - out method. Inventories are maintained by the General Fund and the Utility Fund. The City uses the consumption method in expensing governmental fund inventories. 5. Restricted Assets - The restricted assets shown on the Enterprise Fund balance sheet represent those assets of the Enterprise Fund which are earmarked for specific purposes and cannot be used for paying general obligations of the Fund. The corresponding liability designated as payable from restricted assets represents the current maturities for which the restricted assets are accumulated. 6. Fixed Assets General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitaliz- ed. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are capitalized by the City along with other general fixed assets. Assets in the general fixed assets account group are not depreciated. Depreciation of buildings, equipment and vehicles in the proprietary fund types is computed using the straight-line method, over the following estimated useful lives: Useful Proprietary Type Funds Lives ears Buildings 25 - 40 Land Improvements 5 - 40 Equipment 3 - 35 40 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Interest is capitalized on proprietary fund assets acquired with tax- exempt debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. 7. Compensated Absences - No accrual is made for accrued vacation leave in the governmental funds because of immateriality. Accumulated vacation leave of employees in the proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. No accrual is made for sick leave benefits which accumulate but do not vest until retirement. Accumulated unpaid vacation benefits of $15,775 are accrued in the proprietary funds. 8. Long -Term Obligations - Long-term debt is recognized as a liability of a governmental fund when due. For other long-term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the general long-term debt account group. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. 9. Fund Equity - Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. F. Revenues, Expenditures and Expenses 1. Interest income resulting from pooling of cash in master bank accounts is allocated to the funds in their proportionate share. 2. Unbilled revenue, which results from cyclical billing practices, is recorded in the following fiscal year. 3. Interfund Transactions - Legally authorized transfers from the fund receiving revenue to the fund through which the resources are to be expended, transfers of tax revenues from a special revenue fund to a debt service fund, transfers from the general fund to a special revenue or capital projects fund, operating subsidy transfers from the general or a special revenue fund to an enterprise fund, and transfers from an enterprise fund other than payments in lieu of taxes to finance general fund expenditures. 4. Property Tax Recognition - The key dates in the property tax cycle (latest date where appropriate) are as follows: Assessment/lien date January 1 Assessment roll validated July 1 Millage resolution approved September 30 Beginning of fiscal year for which taxes have been levied October 1 Tax bills rendered and due November 1 Property taxes payable: Maximum discount November 30 Delinquent April 1 Tax certificates sold May 31 41 2 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Property taxes are collected and remitted by the county tax collector. The City does not accrue its portion of county held tax sale certificates because such amounts are neither measurable nor available at balance sheet date. The statutory maximum tax rates which may be assessed by the City are as follows: Ad valorem millage 10 mills Utility tax (Electric, gas, telephone) 10% (Telecommunications) 7% G. Total columns on the Combined Statements -Overview - Total columns on the Combined Statements -Overview are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Stewardship, Compliance, and Accountability: A. Budget Revisions The following schedule summarizes budget revisions by Fund: Original Final Budget Revisions Budget General Fund $ 2,269,594 $ 28,444 $ 2,298,038 Capital Projects Funds: Palatlakaha Recreation Area 150,000 84,863 234,863 Enterprise Funds: Utility Fund 1.186.334 8.387 1,194 721 $ 3,605,928 $ 121,694 $ 3,727,622 B. General Fund Budget/GAAP Reconciliation: Excess of revenues and other sources over expenditures and other uses (budgetary basis) $ 70,223 Adjustments: To reduce revenues for administrative service fees (145,400) To reduce expenditures for adminis- trative service fees 145.400 Excess of revenues and other sources over expenditures and other uses (GAAP basis) $ 70,223 42 ---- CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS C. Enterprise Funds Budget Comparisons Comparison of budgeted and actual (budget basis) expenses at the legal level of control for the Enterprise Funds is presented as follows: Actual (GAAP Basis) Less: Depreciation Add: Capital additions Principal payments Actual (Budget Basis) Budget Variance -favorable (unfavorable) 3. Deposits and Investments: Uti_lith_Fund Sanitation Stormwater Water Sewer Fund Fund $ 417,156 $ 580,439 $ 412,477 $ 73,732 (117,283) (154,343) ... ... 25,738 57,342 15,530 ... 17,500 87,500 ... ... 343,111 570,938 428,007 73,732 435,859 758,862 _ 497:822 75,649 $ 92,748 $ 187,924 $ 69,815 $ 1,917 DEPOSITS The Florida Security for Depositors Act identifies those financial institutions that have deposited the required collateral in the name of the treasurer of the State of Florida as qualified public depositories. The City only places depos- its with qualified public depositories. Therefore, all City deposits are entirely insured by FDIC or Florida's Multiple Financial Institution Collateral Pool. At year end, the carrying amount of the City's deposits was $356,213 and the bank balance was $411,708. During the fiscal year, the City owned certificates of deposit which had matured by the balance sheet date. INVESTMENTS The City's investments are categorized below to give an indication of the level of risk assumed by the entity at year-end. Category 1 includes investments that are insured or registered, or securities held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments held by the counterparty's agent in the City's name. Category 3 includes uninsured and unregistered investments held by a counterparty but not in the City's name. 43 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS State statutes and the City's investment policies authorize investment in U.S. Government Obligations, Federal Farm Credit Banks, Federal National Mortgage Association Obligations and Repurchase Agreements. Carrying Market Value Value Risk Category 3: Repurchase Agreements $ 204,000 $ 204,270 (Secured by USTN due 5/15/95 @ 5.875% held by bank in bank's name) Investment in U.S. Government Fund mutual fund 1,017,384 1,003,773 Investment in state treasurer's investment pool 4,076,833 4,076,833 Florida Municipal Pension Trust Fund 2,128,472 2,128,472 Deferred Compensation Plan 59,243 59,243 Total $ 7,485,932 $ 7,472,591 4. Changes In General Fixed Assets: A summary of changes in general fixed assets is as follows: Balance - Balance - 09_ j30/91 Additions Deletions 92L30/92 Land $ 806,732 $ ... $ ... $ 806,732 Buildings 1,276,264 337,042 ... 1,613,306 Improvements other than buildings 2,808,533 230,038 ... 3,038,571 Machinery and equipment 1,048,106 54,997 � 1,103,103 Totals $ 5,939,635 $ 622,077 $ .. $ 6,561,712 5, A Summary of Proprietary Fund property, plant and equipment: Transfers Transfers Balance and and Balance 9/30/91 Additions Deletions 9 Land $ 927,606 $ ... $ ... $ 927,606 Water system 3,449,265 ... 3,449,265 Sewer system 6,369,826 ... 6,369,826 Equipment _ 608,587 98 AlO _ 707,197 Total 11,355,284 Less: Accumulated depreciation_ 3 078,404 Net $ 8,276,880 $ 98,610 $ ... 11,453,894 299,741 _ 3,378 146 $ 8,075,478 14 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS ------------------- ---------- ------------------ --------mm—aaamffi—=a---------a�a--� 6. Pension Funds: The City has three separate single employer defined benefit plans for general employees, sworn police officers, and volunteer firefighters respectively, as well as a defined contribution plan for general employees. The investment and administrative agent for these plans is the Florida Municipal Pension Trust Fund, an agent multiple -employer Public Employee Retirement System. DEFINED BENEFIT PENSION PLANS Total City payroll for the year ended September 30, 1992, was $1,521,807. Covered payroll for each of the defined benefit plans was: General employees Police officers Volunteer firemen $ 108,230 439,908 18,076 Membership in each of the defined benefit pension plans at September 30, 1992, was as follows: General Police Volunteer Employees Officers Firefighters Retirees/beneficiaries currently receiving benefits 13 2 2 Vested terminated employees 1 0 3 Active employees: Fully vested 5 0 0 Nonvested 0 17 24 Eligibility for Participation General employees - all permanent general employees actively employed by the City on September 30, 1985, who elected to participate. Police officers - all actively employed sworn police officers. Volunteer firefighters - all actively employed volunteer firemen. VESTING General Employees Police Officers Volunteer Firefighters FULL Age 65; 10 years Age 55; 10 years Age 55; 10 years service service service PARTIAL Age 60; 10 years Age 50; 10 years Age 50; 10 years service service service MONTHLY BENEFITS 2% of highest 5 year 2.25% of average $2.00 times years average salary monthly earnings of creditable times years of times years of service creditable creditable service service 45 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS For all plans the partially vested monthly benefit shall be the fully vested amount reduced by 5/12th of 1% of said amount for each month that early retire- ment precedes the normal retirement date. Each defined benefit plan provides disability benefits. Benefit provision and all other requirements are established by Florida Statute and City Ordinance. If an employee terminates his or her employment with the Police or Volunteer Fire Departments, the employee is entitled to a refund of his or her contribution. Police officers and volunteer firefighters contribute 1% of their annual salary to their respective plans. The General Employee plan is non-contributory. The City is required to contribute the remaining amount necessary to fund the Plans according to the actuarial valuations. Funding; Status and Pro ress The Florida Municipal Pension Trust Fund, in which the City of Clermont participates, provided an actuarial valuation for plan years beginning October 1, 1991, for each of the City's three defined benefit plans. The actuarial cost method used for the actuarial valuations of the General Employees' Plan was the individual spread gain method. Under this method, the actuarial present value of each increment of an individual's projected benefits is allocated on a level basis over the future earnings or service of the individual between the age at which such increment is first recognized and the exit age(s). The portion of this actuarial present value allocated to a valuation year is called the normal cost. The actuarial value of assets is deemed to be assigned to individuals on a reasonable and consistent basis; for example, each individual's share may be the accumulation of his (her) prior normal costs and any prior actuarial gains (losses).allocated to the individual. Actuarial gains (losses) are allocated to individuals in proportion to the assigned actuarial value of assets, or on any other reasonable and consistent basis. The actuarial accrued liability for an individual equals the assigned portion of the actuarial value of assets. The Police Officers' and Firefighters' plans use the individual level dollar cost method. Under this method, the actuarial present value of each increment of an individual's projected benefits is allocated on a level basis over the future earnings or service of the individual between the age at which such increment is first recognized and the exit age(s). The portion of this actuarial present value allocated to a valuation year is called the normal cost. Each individual's portion of the actuarial accrued liability should be determined on a consistent basis, usually as the retrospective accumulation of the individual's prior actuarial accrued liability- and -prior- normal cost, using - the valuation actuarial assumptions. /1 h CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits adjusted for the effects of projected salary increases estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the plans on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the plans. The pension benefit obligation was computed as part of the actuarial valuation performed for the plan year beginning October 1, 1991. Significant actuarial assumptions used in the valuation include: (a) An 8 percent compounded annual return on the investment of present and future assets. (b) Projected salary increases due to: Inflation Merit General employees 2% 2% Police officers 2% 3% Firefighters 2% 3% (c) No increase in benefits after retirement. Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits Terminated employees not yet receiving benefits Current employees: Accumulated employee contri- butions Employer financed -vested Employer financed-nonvested Total pension benefit obligation Net assets available for bene- fits at cost which approxi- mates market Unfunded pension benefit ob- ligation/(assets in excess of pension benefit obligation) General Police Volunteer Employees Officers Firefighters Total $ 458,246 $ 324,511 $ 9,007 $ 791,764 -0- -0- -0- -0- -0- 14,304 370 14,674 276,661 317,398 11,687 605,746 -0- 69.205 3,818 73,023 734,907 725,418 24,882 1,485,207 $747,713 $_ 778,984 $ 221.249 $ 1,747,946 $ (12,806) $ (53,566) $(196,367) $ (262,739) 47 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Contributions Required And Contributions Made The City of Clermont's funding policy is to provide for periodic employer contributions at actuarially determined amounts that are designed to accumulate sufficient assets to pay benefits when due. The required contributions for the general employees' plan were determined using the individual spread gain method. Contributions to the plan were determined using the individual level dollar cost method. Unfunded actuarial accrued liabilities would be amortized as a level percent of payroll over a thirty year period. The actuarial assumptions used to compute contribution requirements were the same as those used to compute the pension benefit obligation standardized measure. During the year ended September 30, 1992, contributions were made in accordance with contribution requirements by actuarial valuations of each of the plans as of October 1, 1991. Due to events occurring subsequent to year end, the City accrued an additional contribution to the Police Officers' Pension Fund. Actuarially Determined Employer Contribution Requirement: General Police Volunteer Employees Officers Firefi hters Normal Cost As a Dollar Amount $ 11,556 $ 72,415 $ (526) Contributions Made: Employer City $ 11,556 $ 97,311 $ State 35,449 10 ,574 Subtotal 11,556 132,760 $ 10,574 Employee ___4,448 183 Total $ 11,556 $ 137,208 $ 10,757 Covered Payroll $ 108,230 $ 439,908 $ 18,076 Contributions as a % of Covered Payroll: Employer 10.68% 30.18% 58.50% Employee 1.01% Total 10.68% 31.19% 59.51% f. 0 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Information is presented below for the three years ending September 30, 1992, 1991, and 1990. Ten-year historical trend information is presented in the Statistical Section of this report. All Employer contributions were made in accordance with actuarially determined requirements. General Employees: 1992 1991 1990 Police Officers: 1992 1991 1990 Unfunded PBO Employer's Percentage of as a percentage contribution PBO funded by of covered as a percentage available assets payroll of covered payroll 101.74 (11.83) 10.68 100.96 (5.55) 29.93 78.49 133.11 28.65 107.38 (12.18) 30.18 100.47 (.78) 2.34 87.04 22.66 7.95 Volunteer Firefighters: 1992 889.19 (1,086.34) 58.50 1991 1,177.16 (1,545.44) 83.20 1990 1,039.43 (2,051.91) 178.30 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. This Plan is available to all permanent general employees of the City at September 30, 1985, who elected participation in this plan and all permanent general employees hired by the City on or after October 1, 1985. Employees are fully vested in the Plan after ten years of service. The following is the partial vesting schedule: YEARS OF SERVICE Less than five years 5 years 6 years 7 years 8 years 9 years 10 years VESTED INTEREST 0% 50% 60% 70% 80% 90% 100% 49 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Membership in the defined contribution pension plan at September 30, 1992, was as follows: General Employees Retirees and beneficiaries currently receiving benefits 0 Vested terminated employees 2 Active employees: Fully vested 7 Partially vested 5 Nonvested 24 In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investments 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 FY 1992 was $801,373; the City's total pay- roll was $1,521,807. The City contributes annually to the pension account of each active participant an amount equal to seven percent (7%) of the employee's annual compensation. No contribution is required of employees. The required contribution by the City for FY 1992 was $56,096, or seven percent (7%) of covered payroll, less forfeitures of $11,686. Actual contribution was $44,497. 7. Post -retirement Benefits: Retired or terminated employees have the option of continuing the same type of health, dental, or life insurance coverages available to them while they were employed with the City, in accordance with the provisions of the Consolidated Omnibus Budget Reconciliation Act. The cost of the premiums are paid totally by the former employees. There is no direct cost to the City for these benefits. 8. Deferred Compensation: The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all government employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the -----plan,—all-- property ---and --r-ights---purchased- with --those-- amounts, -- and --all- income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the government subject only to the claims of the government's general creditors. Participants' rights under the plan are equal to those of general creditor of the government in an amount equal to the fair market value of the deferred account for each participant. 50 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS It is the opinion of the government's legal counsel that the government has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The government believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The Deferred Compensation Fund is classified as an agency fund. The assets are stated at the market value which is represented by the contract value provided by the city's third party administrator. 9. Risk Management During fiscal year 1990, the City established an internal service fund to account for its uninsured risk of loss for employee health, accident, and life coverage. Under this program, the fund provides coverage for the first $25,000 per year in medical and/or dental claims for each covered employee; 50% of claims 25,000-30,000; 25% of amounts 30,001-35,000. The City purchases commercial insurance for claims in excess of coverage provided by the fund with a total aggregate stop -loss of $1,000,000. Life insurance with a face value of one and a half times salary for each participating employee is covered with commercial insurance. The general, sanitation, stormwater and utility funds participate in the program and make payments to the internal service fund based on historical costs of prior year commercial insurance premiums. At September 30, 1992, there were claims outstanding in the amount of $9,779. Claims paid during the fiscal year amounted to $153,206. No amount has been accrued for any unreported claims as information available does not indicate any probability of such claims. 10. General Long -Term Debt: The following is a summary of changes in notes payable and bonds outstanding for the year ended September 30, 1992: Note Bonds Payable Total Bonds and note payable at October 1, 1991 $ 1,960,000 $ 62,396 $2,022,396 Retirements (120,000) (4,417) (124,417) Bonds and Note Payable At September 30, 1992 $ 1,840,000 $ 57,979 $1,897,979 51 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Bonds and notes payable at September 30, 1992, are comprised of the following individual issues: Note payable to NCNB National Bank, dated May 23, 1980, due in 24 annual installments of $4,417 each, starting May 23, 1982, plus interest at 5 1/2% per annum, secured by the gasoline tax revenues of the City. Balance 9-30-92 $2,070,000 Sales Tax Revenue Bond, Series 1989 due serially in annual installments of $110,000 to $225,000 starting June 1,1991 through June 1, 2003; interest rates vary from 6.3% to 7.05% Balance 9-30-92 Total General Long Term Debt $ 57,979 1,840,000 $ 1,897,979 The annual requirements to amortize all general long-term debt outstanding as of September 30, 1992, including interest payments of $831,608, are as follows: YEAR ENDING NOTE SEPTEMBER 30 BONDS PAYABLE TOTAL 1993 $ 250,343 $ 7,605 $ 257,948 1994 252,218 7,362 259,580 1995 253,375 7,119 260,494 1996 248,733 6,876 255,609 1997 248,683 6,633 255,316 1998 - 2002 1,256,601 29,520 1,286,121 2003 - 2007 139,165 15_,354 154.519 $ 2,649,118 $ 80,469 $ 2,729,587 11. Enterprise Funds Long -Term Debt: The following is a summary of changes in bonds outstanding for the year ended September 30, 1992: Bonds payable - October 1, 1991 Retirements Bonds Payable - September 30, 1992 1972 1988 Issue Issue Total $ 1,200,000 $ 2,150,000 $ 3,350,000 70 000) (35,000) (105,000) $ 1,130,000 $ 2,115,000 $ 3,245,000 r,1) CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS The debt is comprised of the following individual issues: $1,540,000 1972 Water and Sewer revenue refunding bonds due serially in annual installments of $50,000 to $135,000 starting November 1, 1985 through November 1, 2002; interest at 6% due semiannually $ 1,130,000 — 7 s, vl, l ►� j� $2,200,000 1988 refunding bond issue due serially in annual 1t&1('V' installments of $20,000 to $185,000 starting December 1, 1989 through December 1, 2015; interest coupon rate ranges from 5.25% to 8% and is paid semiannually 2,115,000 Total Bonds Payable $ 3,245,000 Bonds Payable: Current portion of bonds payable $ 110,000 Long-term portion of bonds payable 3 135,000 Total Bonds Payable $ 3,245,000 The gross revenues of the water and sewer system are pledged for retirement of the Water and Sewer Revenue Bonds, and for certain other reserves and accounts in the system. The annual requirements to amortize all bonds outstanding as of September 30, 1992, including interest payments of $2,989,651, are as follows: YEAR ENDING SEPTEMBER 30 1993 1994 1995 1996 1997 1998 - 2002 2003 - 2007 2008 - 2012 2013 - 2016 TOTAL $ 338,256 336,436 339,084 336,204 337,794 1,689,564 1,119,313 967,200 770,800 $ 6,234,651 53 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 12. Interfund Receivables/Payables: Individual fund interfund receivable and payable balances at September 30, 1992, are as follows: General Fund Utility Revenue Fund Sanitation Fund Stormwater Fund General Employees Pension. Trust Fund Police Pension Trust Fund Fire Pension Trust Fund Infrastructure Fund Group Self Insurance Fund Totals 13. Reserved Fund Balances and Retained Earnings: Interfund Interfund Receivables Payables $ 1,681 $ 64,907 121,904 259 ... 103,610 11,834 29 1,119 163 64,411 21 35 ... ... 23,408 8.587 $ 200,984 $ 200,984 Fund Balance - Reserves have been established for the following items: Reserved for Police Education - Funds reserved by state statute for training of police officers. Reserved for Inventory - Funds expended for goods that will be used in the following year. Reserved for Recreation - Funds provided by de- velopers in accordance with a City ordinance for the acquisition and development of parks and recreation areas. Reserved for Cemetery Care - Funds reserved by City ordinance for future care of the cemetery. Reserved for Employees' Retirement Systems - Funds restricted for payment of retirement benefits. Total Reserved Fund Balances $ 9,253 10,547 18,607 185,670 2.129.674 $ 2,353,751 r �, CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Retained Earnings - Reserves have been established in accordance with both the covenants of the City's bond indentures for the following items in the Enter- prise Funds: Reserved for Sinking Fund - Funds restricted for the payment of principal and interest. 1972 series $ 1988 series Reserved for Reserve Account - Funds restricted for future servicing of the revenue bonds (maxi- mum amount of debt service due in any ensuing year.) 142,000 Reserved for Improvement, Repair and Replacement - Funds restricted for meeting of various contingen- cies as may be specified and defined in the indenture. 150,000 Reserved for Utility Benefit Fees - Funds restricted for utility expansion, 993,747 Total Reserved Retained Earnings $ 1,285,747 14. Changes in Contributed Capital: Balance October 1, 1991 $ 2,667,107 Contributions from developers 55,177 Balance September 30, 1992 $ 2,722,284 15. Segment Information: The City maintains three Enterprise Funds which provide sanitation, water and sewer, and stormwater services. Segment information for the year ended Septem- ber 30, 1992, is as follows: UTILITY SANITATION STORMWATER ENTERPRISE FUND FUND FUND FUNDS Operating Revenues $ 1,140,865 $ 468,294 $ 141,650 $ 1,750,809 Depreciation 271,626 28,115 299,741 Operating Income 143,270 55,817 67,918 267,005 Operating Grants ... 10,020 ... 10,020 Operating transfer out (44,008) ... ... (44,008) Net Income 10,510 75,920 71,609 158,039 Current Capital - Contributions 55,177 ... 55,177 Plant, Property and Equipment: Additions 83,080 15,530 98,610 Net Working Capital 1,689,111 347,814 154,323 2,191,248 Total Assets 11,033,113 671,717 155,811 11,860,641 Bonds and Other Long -Term Liabilities: Payable From Operating Revenues 3,135,000 ... ... 3,135,000 Total Equity 7,626,605 546,953 154,323 8,327,881 55 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 16. Contingencies: The City is not aware of any pending or threatened litigation which would not be covered by insurance. 17. Subsequent Events: Subsequent to year end, the City was notified that a calculation error had been made in determining the level of funding of the Police Pension Fund. The City expects to pay $64,183 additional contribution for the 1992 year. This amount has been recognized as an expense and an interfund payable in the General Fund and as a contribution and interfund receivable in the Police Pension Fund. 18. Other Matters: The City of Clermont, together with several other cities in Lake County, has disagreed with Lake County over the amounts charged the cities for disposal of its solid waste at the County's incinerator. In an effort to force the County to resolve the matter, the City on January 28, 1992, authorized the withholding of a percentage of the County's solid waste tipping fee representing amounts the City believes they were overcharged beginning March 1, 1991. The City has established a separate fund with an escrow account to accumulate the amount they feel representative of the overcharges for the above -mentioned time period. The City has not expensed these overcharges as it does not anticipate paying them. 9h COMBINING AND INDIVIDUAL FUND ACCOUNT GROUP STATEMENTS These financial statements provide a more detailed view of the "General Purpose Financial Statements" presented in the preceding subsection. Combining statements are presented when there are more than one fund of a given fund type. Individual fund and account group statements are presented when there is only one fund of a given type and for the account group. They are also necessary to present budgetary comparisons. GO VERNIVIEN TA FUND T YPES 57 THIS PAGE INTENTIONALLY LEFT BLANK 58 GENERAL FUND The General Fund accounts for all revenues and expenditures of the City which are not required to be accounted for in other funds. It receives a greater variety and number of taxes and other general revenues than any other fund. 59 CITY OF CLERMONT, FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1992 AND 1991 ASSETS 1992 1991 Cash and cash equivalents $ 685,505 $ 148,370 Investments 512,655 1,000,000 Receivables: Interest 8,539 Accounts 12,774 15,136 Assessments 29,469 Interfund 1,681 Due from other governments 39,197 18,034 Inventory 10,546 ----------- 4,098 ----------- TOTAL ASSETS $ 1,262,358 $ 1,223,646 LIABILITIES AND FUND BALANCE ---------------------------- Liabilities: Accounts payable $ 15,643 $ 42,734 Other accrued expenses 19,489 10,753 Interfund payables 64,907 ----------- 13,880 ----------- Total Liabilities 100,039 67,367 Fund Balance: ----------- ----------- Reserved for police education 9,253 6,554 Reserved for inventory 10,547 4,098 Reserved for recreation 18,607 18,607 Unreserved, designated for capital replacement 83,935 83,935 Unreserved, undesignated 1,039,977 ----------- 1,043,085 ----------- Total Fund Balance 1,162,319 ----------- 1,156,279 ----------- TOTAL LIABILITIES AND FUND BALANCE $ 1,262,358 $ 1,223,646 60 CITY OF CLERMONT, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1991 VARIANCE FAVORABLE 1991 BUDGET ACTUAL (UNFAVORABLE) ------------- ACTUAL ------ Revenues: ------ ------ Taxes $ 1,316,178 $ 1,349,613 $ 33,435 $ 1,281,612 Licenses and permits 27,900 41,127 13,227 28,917 Intergovernmental revenues 496,400 501,507 5,107 486,812 Charges for services 164,900 178,076 13,176 118,870 Fines and forfeitures 56,000 90,039 34,039 69,571 Miscellaneous revenues 130,344 123,103 (7,241) 170,579 Total Revenues ----------- 2,191,722 ----------- ----------- 2,283,465 ----------- ----------- 91,743 ----------- ----------- 2,156,361 ----------- Expenditures: General government 541,603 505,142 36,461 492,142 Public safety 862,500 931,441 (68,941) 830,411 Physical environment 110,175 104,420 5,755 101,011 Transportation 292,203 249,736 42,467 311,383 Economic environment 10,615 11,817 (1,202) 9,283 Human services 13,737 13,650 87 13,665 Culture and recreation 467,205 438,956 28,249 435,748 Total Expenditures ----------- 2,298,038 ---------------------- 2,255,162 ----------- 42,876 ----------- 2,193,643 ----------- Excess (Deficiency) of Revenues ----------- ----------- Over Expenditures (106,316) 28,303 134,619 (37,282) ----------- Other Financing Sources (Uses): ----------- ---------------------- Operating transfers in 63,804 62,263 (1,541) ... Operating transfers out (84,663) (84,526) 137 (61,752) ----------- Total Other Financing ----------- ---------------------- Sources (Uses) (20,859) (22,263) (1,404) (61,752) Excess (Deficiency) of Revenues ----------- ---------------------- ----------- over Expenditures and Other Sources (Uses) (127,175) 6,040 133,215 (99,034) Fund Balance - October 1 1,156,279 ----------- 1,156,279 ---------------------- ... 1,255,313 ----------- FUND BALANCE - SEPTEMBER 30 $ 1,029,104 $ 1,162,319 $ 133,215 $ 1,156,279 61 CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1991 VARIANCE FAVORABLE 1991 BUDGET ------ ACTUAL ------ (UNFAVORABLE) ------------- ACTUAL ------ Taxes: Ad valorem $ 450,678 $ 441,449 $ (9,229) $ 393,354 Local option gas tax 150,000 143,205 (6,795) 149,227 Franchise fees 289,300 305,342 16,042 300,116 Utility taxes 426,200 ----------- 459,617 ----------- 33,417 ---------- 438,915 ----------- Total 1,316,178 ----------- 1,349,613 ----------- 33,435 ---------- 1,281,612 ----------- Licenses and Permits: Professional and occupational 15,900 19,112 3,212 20,067 Other permits 12,000 ----------- 22,015 ----------- 10,015 ---------- 8,850 ----------- Total 27,900 ----------- 41,127 ----------- 13,227 ---------- 28,917 ----------- Intergovernmental revenues: Two -cent cigarette tax 28,700 29,525 825 30,024 State revenue sharing 159,500 163,215 3,715 164,541 Mobile home licenses 11,000 11,514 514 11,295 Alcoholic beverage licenses 5,600 4,910 (690) 5,530 Half -cent sales tax 205,000 213,901 8,901 206,746 Motor fuel tax rebate 4,000 4,988 988 4,525 Municipality share of county occupational licenses 15,300 14,049 (1,251) 15,288 Municipality share of one -cent voted gas tax 39,900 42,746 2,846 44,178 Special fuel tax 150 43 (107) 245 School crossing guard 4,500 3,364 (1,136) 4,440 Grants ----------- 22,750 13,252 ----------- (9,498) ---------- ----------- ... Total 496,400 501,507 5,107 486,812 ------------------------------------------- Continued 62 CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1991 VARIANCE FAVORABLE 1991 BUDGET ------ ACTUAL ------ (UNFAVORABLE) ------------- ACTUAL ------ Charges for Services: Program activity fees $ 19,500 $ 32,676 $ 13,176 $ 19,327 Administrative service fee 145,400 ----------- 145,400 ----------- ... ---------------------- 99,543 Total 164,900 ----------- 178,076 ----------- 13,176 ---------------------- 118,870 Fines and forfeitures Court fines 53,000 82,618 29,618 66,083 Police education 2,500 3,164 664 2,768 False alarms 500 1,530 1,030 720 Confiscations ... ----------- ----------- 2,727 ----------- 2,727 ----------- ... Total 56,000 ---------------------- 90,039 ----------- 34,039 ----------- 69,571 Miscellaneous: Impact fees ... ... 29,468 Interest 96,000 84,079 (11,921) 106,647 Rentals 10,112 9,766 (346) 8,876 Memorial sales 1,000 1,364 364 728 Surplus equipment sales 1,500 (1,500) 4,060 Contributions 11,500 17,320 5,820 7,622 Other miscellaneous 10,232 ----------- 10,574 ---------------------- 342 13,178 ----------- Total 130,344 ----------- 123,103 ---------------------- (7,241) 170,579 ----------- TOTAL REVENUES $ 2,191,722 $ 2,283,465 $ 91,743 $ 2,156,361 63 CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1991 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) 1991 ------ ------------------- ---- General Government Services: --------------------------- City Council: Personal services $ 20,640 $ 20,646 Operating expenses 4,144 3,601 Total Legislative ---------------------- 24,784 24,247 City Manager: ---------------------- Personal services 97,635 97,628 Operating expenses 8,142 8,162 Capital outlay ... ... Total Executive ----------- ----------- 105,777 105,790 Finance and Administrative: ---------------------- Personal services 167,850 157,458 Operating expenses 62,990 57,623 Capital outlay ... 1,740 Total Finance and ---------------------- Administrative 230,840 216,821 Legal Counsel: ---------------------- Operating expenses 11,200 ---------------------- 11,790 Planning and Zoning: Personal services 101,300 Operating expenses 44,902 Capital outlay 3,500 Total Planning and Zoning 149,702 Other General Government: Operating expenses Total General Government Services 19,300 541,603 98,126 25,250 3,457 126,833 19,661 505,142 $ (6) $ 10,800 543 ----------- 2,944 ----------- 537 13,744 7 93,083 (20) 8,061 ... ----------- 1,995 ----------- (13) ---------------------- 103,139 10,392 158,093 5,367 59,748 (1,740) 2,841 14,019 220,682 ----------------- (590) 10,815 ----------------- 3,174 81,447 19,652 43,977 43 802 ---------------------- 22,869 126,226 (361) 17,536 --------------------- 36,461 492,142 Continued 64 CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1991 VARIANCE FAVORABLE BUDGET ------ ACTUAL ------ (UNFAVORABLE) ------------- 1991 ---- Public Safety: ------------- Law Enforcement: Personal services $ 693,577 $ 765,039 $ (71,462) $ 633,249 Operating expenses 103,002 98,546 4,456 106,428 Capital outlay 14,680 ----------- 14,208 ----------- 472 51,712 Total Law ---------------------- Enforcement 811,259 ----------- 877,793 ----------- (66,534) 791,389 Fire Control: ---------------------- Personal services 24,206 26,256 (2,050) 14,262 Operating expenses 27,035 27,392 (357) 22,765 Capital outlay ... ----------- ... ----------- ----------- 1,995 Total Fire Control 51,241 ----------- 53,648 ----------- ----------- (2,407) ---------------------- 39,022 Total Public Safety 862,500 931,441 (68,941) 830,411 Physical Environment: Public Works: Personal services 59,100 54,508 4,592 69,120 Operating expenses 29,287 35,479 (6,192) 29,587 Capital outlay 21,788 14,433 7,355 2,304 Total Physical Environment 110,175 104,420 5,755 101,011 -------------------------------------------- Transportation: Road and Streets: Personal servcies 120,300 113,448 6,852 116,331 Operating expense 161,903 136,288 25,615 152,401 Capital outlay 10,000 ... 10,000 42,651 Total Transportation 292,203 249,736 42,467 311,383 -------------------------------------------- Continued 65 CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1991 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) 1991 Economic Environment: -------------------- Economic Development: Operating expenses $ 10,615 ----------- $ 11,817 ----------- $ (1,202) $ ---------------------- 9,283 Human Services: -------------- Animal Control: Personal services 9,475 9,394 81 10,092 Operating expenses 4,262 4,256 6 3,573 Total Human Services 13,737 ----------- 13,650 ----------- 87 ---------------------- 13,665 Culture and Recreation: ---------------------- Library: Operating expenses 59,380 57,536 1,844 55,724 Debt service 7,850 7,856 (6) 8,091 Total Library 67,230 65,392 1,838 63,815 -------------------------------------------- Parks and Recreation: Personal services 230,000 210,120 19,880 198,453 Operating expenses 132,151 139,506 (7,355) 125,263 Capital outlay 37,824 ----------- 23,938 13,886 48,217 Total Parks and ----------- ----------- ----------- Recreation 399,975 373,564 26,411 371,933 Total Culture and - Recreation 467,205 ----------- 438,956 ---------------------- 28,249 435,748 ----------- TOTAL EXPENDITURES $ 2,298,038 $ 2,255,162 $ 42,876 $ 2,193,643 66 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trust, or major capital projects) that are legally restricted to expenditure for specified purposes. Certain administrative expenses are paid by the General Fund. INFRASTRUCTURE FUND To account for the proceeds of the Local Government Infrastructure Surtax to be received by the City until the end of Fiscal Year 2002. The proceeds and interest accrued thereto, by law are only to be used to finance, plan and construct infrastructure. IMPACT FEE FUND To account for the Recreation, Police and Fire Impact Fees collected from new developments constructed in the City. BLOCK GRANT FUND To account for the Community Development Block Grant from the U.S. Department of Housing and Urban Development. ,M CITY OF CLERMONT, FLORIDA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1991 ASSETS Cash and cash equivalents Due from other government TOTAL ASSETS LIABILITIES AND FUND BALANCE ---------------------------- Liabilities: INFRA - IMPACT BLOCK TOTALS STRUCTURE FEE GRANT --------------------- FUND FUND FUND 1992 1991 $ 1,479 $ 19,793 $ 217,753 $ 239,025 $ 3,010 46,256 ... ... 46,256 24,000 ----------------------------=---------------- $ 47.,735 $ 19,793 $ 217,753 $ 285,281 $ 27,010 Accounts payable $ 1,557 $ ... $ 22,587 $ 24,144 $ Contracts payable 2,598 ... 10,393 12,991 Interfund payables 23,408 ... ... 23,408 15,047 --------------------------------------------- Total Liabilities 27,563 ... 32,980 60,543 15,047 --------------------------------------------- Fund Balance 20,172 19,793 184,773 224,738 11,963 --------------------------------------------- TOTAL LIABILITIES AND FUND BALANCE $ 47,735 $ 19,793 $ 217,753 $ 285,281 $ 27,010 Cf:' CITY OF CLERMONT, FLORIDA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1991 INFRA - IMPACT BLOCK TOTALS STRUCTURE FEE GRANT --------------------- FUND FUND FUND 1992 1991 Revenues: Taxes $ 326,504 $ ... $ ... $ 326,504 $ 300,154 Intergovernmental ... ... 220,003 220,003 Miscellaneous: Interest 44 292 ... 336 315 Impact fees ... 16,491 ... 16,491 2,985 Total Revenues 326,548 16,783 220,003 563,334 303,454 --------------------------- ------ --------- Expenditures: Current: General government ... ... 35,230 35,230 47,168 Transportation .. ... ... 19,093 Culture and recreation 64,808 ... ... 64,808 --------------------------------------------- Total Expenditures 64,808 ... 35,230 100,038 66,261 --------------------------------------------- Excess of Revenues Over Expenditures 261,740 16,783 184,773 463,296 237,193 Operating Transfers (Out) (250,521) ... ... (250,521) (247,000) --------------------------------------------- Excess of Revenues Over (Under) Expenditures and Operating Transfers 11,219 16,783 184,773 212,775 (9,807) Fund Balance - October 1 8,953 3,010 ... 11,963 21,770 --------------------------------------------- FUND BALANCE - SEPTEMBER 30 $ 20,172 $ 19,793 $ 184,773 $ 224,738 $ 11,963 69 CITY OF CLERMONT, FLORIDA INFRASTRUCTURE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1991 Revenues: Taxes Miscellaneous: Contributions Interest Total Revenues Expenditures: Current: General government Transportation Culture and recreation Total Expenditures Excess of Revenues Over Expenditures Operating Transfers (Out) Excess of Revenues Over (Under) Expenditures and Operating Transfers Fund Balance - October 1 FUND BALANCE - SEPTEMBER 30 VARIANCE FAVORABLE 1991 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ------ ------------------- ------ $ 306,000 $ 326,504 $ 20,504 $ 300,154 20,000 ... (20,000) 2,000 44 (1,956) 290 ------------------------------------ 328,000 326,548 (1,452) 300,444 ------------------------------------ ••• ••• ... 47,168 19,093 82,000 64,808 17,192 ... ------------------------------------ 82,000 --------- 64,808 ------------------ 17,192 66,261 --------- 246,000 261,740 15,740 234,183 (250,022) --------- (250,521) ------------------ (499) (247,000) --------- (4,022) 11,219 15,241 (12,817) 8,953 --------- 8,953 ------------------ ... 21,770 --------- $ 4,931 $ 20,172 $ 15,241 $ 8,953 70 DEBT SERVICE FUND The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, General Long -Term Debt principal and interest. SALES TAX REVENUE BOND SINKING FUND To account for the accumulation of funds and payment of Debt Service pertaining to the 1989 Sales Tax Revenue Bond. The City's share of the Local Government Infrastructure Surtax has been pledged to pay the 1989 Sales Tax Bond Debt Service. A portion of the surtax revenue is transferred to the Sales Tax Bond Fund monthly. 71 CITY OF CLERMONT, FLORIDA SALES TAX REVENUE BOND SINKING FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1992 AND 1991 TOTALS ----------- 19921991 ASSETS Cash and cash equivalents $ ----------- 83,447 $ ----------- 83,969 TOTAL ASSETS $ 83,447 $ 83,969 FUND BALANCE ------------ Reserved for debt service $ ----------- 83,447 $ ----------- 83,969 TOTAL FUND BALANCE $ 83,447 $ 83,969 72 CITY OF CLERMONT, FLORIDA SALES TAX REVENUE BOND SINKING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1991 Revenues: Interest Expenditures: Debt Service: Fees Interest Principal Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources: Operating transfers in Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balance - Beginning of Year FUND BALANCE END OF YEAR 1992 ------------------------------------ VARIANCE FAVORABLE 1991 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ------ ------------------- ------ $ 5,000 $ 3,548 $ (1,452) $ 5,225 ------------------------------------ 2,000 1,569 431 1,621 133,022 133,022 139,952 120,000 --------- 120,000 --------- ... --------- 110,000 --------- 255,022 --------- 254,591 --------- 431 --------- 251,573 --------- (250,022) (251,043) (1,021) (246,348) 250,022 --------- 250,521 --------- 499 --------- 247,000 --------- ... (522) (522) 652 83,969 --------- 83,969 --------- ... --------- 83,317 --------- $ 83,969 $ 83,447 $ (522) $ 83,969 73 THIS PAGE INTENTIONALLY LEFT BLANK 74 CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). PALATLAKAHA RECREATION AREA FUND To account for the acquisition of land and development of the Palatlakaha Recreation Area Park. Financing will be obtained from a combination of 1989 Sales Tax Revenue Bonds proceeds, Local Government Infrastructure Surtax, donations and grants. BUILDING CONSTRUCTION FUND To account for the construction of the Public Services Complex, and Public Safety Building. Financing will be obtained from the 1989 Sales Tax Revenue Bond proceeds and the Local Government Infrastructure Surtax. 75 CITY OF CLERMONT, FLORIDA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1991 ASSETS Cash and cash equivalents Investments Interest receivable Interfund receivables TOTAL ASSETS LIABILITIES AND FUND BALANCE ---------------------------- Liabilities- Accounts payable Contracts payable Retainage payable Interfund payables Total Liabilities Fund Balance TOTAL LIABILITIES AND FUND BALANCE PALATLAKAHA TOTALS RECREATION BUILDING -------------------------- AREA CONSTRUCTION 1992 1991 $ ... $ 483,057 $ 483,057 $ 399,822 ••• ... ... 400,000 ••• ••. ... 1,841 ••• ••. ... 14,867 -------------------------------------------- $ ... $ 483,057 $ 483,057 $ 816,530 $ 303 41,526 41,829 441,228 $ ... $ 483,057 ---------------------- $ 303 41,526 41,829 441,228 $ 483,057 $ 25,579 6,582 40,625 14,867 87,653 728,877 $ 816,530 76 CITY OF CLERMONT, FLORIDA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1991 Revenues: Intergovernmental Miscellaneous Total Revenues Expenditures: Capital outlay: Public safety Public works Culture/recreation Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfer (out) Total Other Financing Sources (Uses) PALATLAKAHA TOTALS RECREATION BUILDING -------------------------- AREA CONSTRUCTION 1992 1991 $ 112,500 $ ... $ 112,500 199 36,526 36,725 112,699 36,526 149,225 Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balance - October 1 ..• $ ... 234,725 234,725 (122,026) 87,910 180,510 268,420 (231,894) 87,910 180,510 234,725 503,145 (353,920) 122,026 ... 122,026 ... (55,755) (55,755) 122,026 (55,755) 66,271 FUND BALANCE - SEPTEMBER 30 (287,649) 728,877 $ 441,228 (287,649) 728,877 $ 441,228 $ 94,008 94,008 12,134 464,468 282,021 758,623 (664,615) 233,885 (182,134) 51,751 (612,864) 1,341,741 $ 728,877 77 CITY OF CLERMONT, FLORIDA PALATI.AKAHA RECREATION AREA FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1991 Revenues: Intergovernmental Miscellaneous: Contributions Interest Total Revenues Expenditures: Capital outlay Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in 1992 ---------------------------------------- VARIANCE FAVORABLE 1991 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ------ ------------------- ------ $ 112,500 $ 112,500 $ ... $ ... 199 199 367 ... ... ... 3,247 -------------------------------------------- 112,500 112,699 199 3,614 -------------------------------------------- 234,863 234,725 138 282,021 (122,363) (122,026) 337 (278,407) 122,163 122,026 (137) 233,885 -------------------------------------------- Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) (200) ... 200 (44,522) Fund Balance - October 1 ... ... 44,522 -------------------------------------------- FUND BALANCE - SEPTEMBER 30 $ (200) $ ... $ 200 $ ... 78 CITY OF CLERMONT, FLORIDA BUILDING CONSTRUCTION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1991 Revenues: Miscellaneous: Interest Expenditures: Capital outlay Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers out 1992 ---------------------------------------- VARIANCE FAVORABLE 1991 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ------ ------------------- ------ $ 44,500 $ 36,526 $ (7,974) $ 90,394 ----------- - ---------------------------- 500,000 268,420 231,580 476,602 -------------------------------------------- (455,500) (231,894) 223,606 (386,208) (57,604) (55,755) 1,849 (182,134) -------------------------------------------- Excess of Revenues and Other Financing Sources Over (Under)Expenditures and Other Financing Uses (513,104) Fund Balance - October 1 728,877 FUND BALANCE - SEPTEMBER 30 $ 215,773 (287,649) 225,455 728,877 ... $ 441,228 $ 225,455 (568,342) 1,297,219 $ 728,877 79 THIS PAGE INTENTIONALLY LEFT BLANK PROPRIETARY FUND TYPES 8l THIS PAGE INTENTIONALLY LEFT BLANK DP-4 ENTERPRISE FUNDS Enterprise 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 charge; 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. UTILITY FUND To account for the provision of water and sewer services to the residents of the City. 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. SANITATION FUND To account for the provision of garbage and trash removal services to the residents of the City. All activities necessary to the provision of these services are accounted for in this fund. STORMWATER UTILITY FUND To account for the construction and maintenance of stormwater drainage systems within the City. All activities necessary to the provision of this service is accounted for in this fund. 83 CITY OF CLERMONT, FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1991 ASSETS Current Assets: Cash and cash equivalents Investments Receivables: Interest Accounts Other Interfund Due from other governments Inventory Total Current Assets Restricted Assets: Cash and cash equivalents Property, Plant and Equipment: Land Water system Sewer system Machinery and equipment Less accumulated depreciation Net Property, Plant and Equipment TOTAL ASSETS TOTALS UTILITY SANITATION STORMWATER ---------------------------- FUND FUND FUND 1992 1991 $ 1,069,024 $ 308,105 $ 143,977 $ 1,521,106 $ 1,199,496 504,729 ... 504,729 500,000 ••• ••• ... 6,690 ... 153,700 153,700 153,058 495 753 ... 1,248 1,073 121,904 ... 11,834 133,738 119,722 10,020 ... 10,020 24,000 20,318 ... ... 20,318 22,211 1,716,470 472,578 155,811 2,344,859 2,026,250 --------- ---------------------------------- ------------ 1,440,034 ... ... 1,440,034 1,450,726 -------------------- ----------------------------------- 927,606 ... 3,449,265 ... 6,369,826 ... 311,448 395,749 ------------ ----------- 11,058,145 395,749 3,181,536 196,610 ----------------------- 927,606 927,606 ... 3,449,265 3.449,265 ... 6,369,826 6,369,826 707,197 608,587 ... 11,453,894 11,355,284 3,378,146 3,078,404 --------------------------- 7,876,609 199,139 ... 8,075,748 8,276,880 ---------------------------------------------- ------------ $ 11,033,113 $ 671,717 $ 155,811 $ 11,860,641 $ 11,753,856 84 TOTALS UTILITY SANITATION STORMWATER ---------------------------- LIABILITIES AND FUND EQUITY --------------------------- FUND ---- FUND ---- FUND ---- 1992 ---- 1991 Liabilities: ---- Current Liabilities (payable from current assets): Accounts payable $ 7,776 $ 11,185 $ 4 $ 18,965 $ 30,211 Other accrued expenses 19,324 9,969 1,455 30,748 20,291 Interfund payables ------------ 259 103,610 ----------- 29 ----------- 103,898 ------------ ------------ 110,979 Total Current Liabilities (payable from current assets) ------------ 27,359 124,764 ----------- 1,488 ----------- 153,611 ------------ ------------ 161,481 Current Liabilities (payable from restricted assets): Deposits 51,307 ... 51.307 42,442 Revenue bond interest 82,842 ... 82,842 85,268 Revenue bonds ------------ 110,000 ----------- ----------- 110,000 ------------ ------------ 105,000 Total Current Liabilities (payable from restricted assets) ------------ 244,149 ... ----------- ... ----------- 244,149 ------------ ------------ 232,710 Long-Term Liabilities: Revenue bonds (net of current portion) ------------ 3,135,000 ... ----------- ... ----------- 3,135,000 ------------------------ 3,245,000 Total Liabilities ------------ 3,406,508 124,764 ----------- 1,488 ----------- 3,532,760 ------------ ------------ 3,639,191 Fund Equity: Contributed capital ------------ 2,620,562 101,722 ----------- ... ----------- 2,722,284 ------------ ------------ 2,667,107 Retained Earnings: Reserved 1,285,747 ... ... 1,285,747 1,218,016 Unreserved ------------ 3,720,296 445,231 ----------- 154,323 ----------- 4,319,850 ------------ ------------ 4,229,542 Total Retained Earnings ------------ 5,006,043 445,231 ----------- 154,323 ----------- 5,605,597 ------------ ------------ 5,447,558 Total Fund Equity ------------ 7,626,605 546,953 ----------- 154,323 ----------- 8,327,881 ------------ ------------ 8,114,665 TOTAL LIABILITIES AND FUND EQUITY $ 11,033,113 $ 671,717 $ 155,811 $ 11,860,641 $ 11,753,856 85 THIS PAGE INTENTIONALLY LEFT BLANK 86 CITY OF CLERMONT, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1991 Operating Revenues Charges for services Miscellaneous TOTALS UTILITY SANITATION STORMWATER ------------------------- FUND FUND FUND 1992 1991 ---- ---- ---- ---- ---- $ 1,140,249 $ 461,050 $ 141,650 $ 1,742,959 $ 1,638,810 616 7,234 ... 7,850 6,883 --------------------------------- ----------- ----------- Total Operating Revenues 1,140,865 ----------- ----------- 468,294 ----------- 141,650 1,750,809 ----------- 1,645,693 ----------- Operating Expenses: Personal services 273,849 200,318 34,333 508,500 509,448 Utilities 139,495 ... ... 139,495 141,650 Landfill ... 106,987 ... 106,987 109,545 Administrative services 95,200 21,800 28,400 145,400 99,543 Repair and maintenance 75,487 7,877 3,689 87,053 116,259 Depreciation 271,626 28,115 ... 299,741 280,237 Professional services 49,140 3,300 ... 52,440 79,019 Insurance 48,690 10,650 3,043 62,383 56,726 Operating supplies 27,613 28,492 4,063 60,168 64,728 Office expense 15,062 3,474 ... 18,536 15,762 Bad debt expense 1,433 ---------------------- 1,464 ----------- 204 3,101 ----------- 2,525 ----------- Total Operating Expenses 997,595 ----------- ----------- 412,477 ----------- 73,732 1,483,804 ----------- 1,475,442 ----------- Operating Income (Loss) 143,270 ----------- ----------- 55,817 ----------- 67,918 267,005 ----------- 170,251 ----------- Nonoperating Revenues (Expenses): Interest revenue 142,411 10,083 3,691 156,185 218,686 Interest expense (231,163) ... ... (231,163) (241,253) Grants ... ---------------------- 10,020 ----------- ... 10,020 ----------- 41,718 ----------- Total Nonoperating Revenues (Expenses) (88,752) ---------------------- 20,103 ----------- 3,691 (64,958) ----------- 19,151 ----------- Income Before Operating Transfers 54,518 75,920 71,609 202,047 189,402 Operating transfers in (out) (44,008) ---------------------- ... ----------- ... (44,008) ----------- 10,000 ----------- Net Income 10,510 75,920 71,609 158,039 199,402 Retained Earnings - October 1 4,995,533 ----------- ----------- 369,311 ----------- 82,714 5,447,558 ----------- 5,248,156 ----------- RETAINED EARNINGS - SEPTEMBER 30 $ 5,006,043 $ 445,231 $ 154,323 $ 5,605,597 $ 5,447,558 87 CITY OF CLERMONT, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1991 TOTALS UTILITY SANITATION STORMWATER ------------------------- FUND FUND FUND 1992 1991 Cash Flows From Operating Activities: Cash received from customers $ 1,159,686 $ 467,477 $ 141,473 $ 1,768,636 $ 1,602,585 Cash payments to suppliers (468,159) (178,171) (39,639) (685,969) (692,172) Cash payments for employee services (267,774) ---------------------- (201,976) ----------- (34,116) (503,866) (506,415) Net Cash Provided By ----------- ----------- Operating Activities 423,753 ---------------------- 87,330 ----------- 67,718 578,801 403,998 Cash Flows From NonCapital ----------- ----------- Financing Activities: Operating transfer in ... ... ... 10,000 Grants ... 17,718 Operating transfer out (44,008) ----------- ----------- (44,008) ... Net Cash Provided By Non - ----------- ----------- ----------- Capital Financing Activities (44,008) ----------- ----------- ----------- ... (44,008) 27,718 Cash Flows From Capital and Related ----------- ----------- Financing Activities: Acquisition and construction of capital assets (83,080) (15,530) (98,610) (307,512) Principal paid on revenue bonds (105,000) ... (105,000) (95,000) Interest paid on revenue bonds (233,589) ... ... (233,589) (243,429) Contributed capital 55,178 ----------- ----------- ... ----------- 55,178 18,996 Net Cash (Used) By ----------- ----------- Capital and Related Financing Activities (366,491) ----------- ----------- (15,530) ----------- ... (382,021) (626,945) Cash Flows From Investing Activities: ----------- ----------- Interest 149,101 10,083 3,691 162,875 221,098 Investment purchases (504,729) ----------- ----------- ... ... (504,729) ... Net Cash Provided (Used) By ----------- ----------- ----------- Investing Activities (355,628) ---------------------- 10,083 ----------- 3,691 (341,854) 221,098 Net Increase (Decrease) in Cash ----------- ----------- and Cash Equivalents (342,374) 81,883 71,409 (189,082) 25,869 Cash and Cash Equivalents at Beginning of Year 2,851,432 ---------------------- 226,222 ----------- 72,568 3,150,222 3,124,353 Cash and Cash Equivalents at ----------- ----------- End of Year $ 2,509,058 $ 308,105 $ 143,977 $ 2,961,140 $ 3,150,222 88 Reconciliation of Operating Income To Net Cash Provided By Operating Activities: Operating income Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation Change in Assets and Liabilities: TOTALS UTILITY SANITATION STORMWATER ------------------------- FUND FUND FUND 1992 1991 ---- ---- ---- ---- ---- $ 143,270 $ 55,818 $ 67,918 $ 267,006 $ 170,251 ----------- -------------------------------------------- 271,626 28,115 ... 299,741 280,237 Decrease (Increase) in receivables 9,956 (817) 27 9,166 (57,444) Decrease in inventory 1,893 ... ... 1,893 3,329 Increase (Decrease) in accrued expenses 6,075 (1,658) 217 4,634 2,203 Increase (Decrease) in payables (9,067) ---------------------- 5,872 ----------- (444) ----------- (3,639) ----------- 5,422 Total Adjustments 280,483 ---------------------- 31,512 ----------- (200) ----------- 311,795 ----------- 233,747 Net Cash Provided by Operating Activities $ 423,753 $ 87,330 $ 67,718 $ 578,801 $ 403,998 89 CITY OF CLERMONT, FLORIDA UTILITY FUND COMPARATIVE SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS REQUIRED BY BOND ORDINANCE FOR THE YEARS ENDED SEPTEMBER 30, 1992 AND 1991 1992 1991 Operating Revenues: Charges for services $ 1,140,249 $ 1,062,790 Miscellaneous 616 2,502 Total Operating Revenues 1,140,865 1,065,292 Operating Expenses: Personal services 273,849 259,423 Utilities 139,495 141,650 Administrative services 95,200 73,000 Repair and maintenance 75,487 105,765 Depreciation 271,626 253,687 Professional services 49,140 69,118 Insurance 48,690 44,274 Supplies 27,613 36,425 Office expense 15,062 12,664 Bad debt expense 1,433 1,396 Total Operating Expenses 997,595 ----------- 997,402 ----------- Operating Income 143,270 67,890 Nonoperating Revenues (Expenses): ----------- ----------- Interest 142,411 206,361 Interest expense and amortization (231,163) (241,253) Grants ••• ----------- 24,000 ----------- Total Nonoperating Revenues (Expenses) (88,752) ----------- (10,892) ----------- Income Before Operating Transfers 54,518 56,998 Operating transfer out (44,008) ••• Net Income 10,510 56,998 Retained Earnings - October 1 4,995,533 ----------- 4,938,535 ----------- RETAINED EARNINGS - SEPTEMBER 30 $ 5,006,043 sxffix=x¢sffix@ $ 4,995,533 ex__x=xffixxx Customers Connected To The Water System at September 30 2,590 as@i: 2,541 iaass 90 INTERNAL SERVICE FUND The internal Service Fund is used to account for the financing of goods or services provided by one department to other departments on a cost reimbursement basis. GROUP SELF-INSURANCE FUND To account for the City's retention of risk financing arising from employee medical and dental expense claims. Costs are billed based on historical costs to the various departments. 91 CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1992 AND 1991 s=�a�s��ss:��a�sma:s::sga�smasasesas:gams:�:�aa:masmaeas:mmaax:a:saxsxs=smssxmasmsxs TOTALS ------------------------ ASSETS 1992 1991 Cash and cash equivalents $ 132 $ Accounts receivable 3,049 10,000 ------------------ Total Assets $ 3,181 $ 10,000 LIABILITIES AND FUND EQUITY --------------------------- Liabilities: Accounts payable $ 9,779 $ 19,267 Interfund payables 8,587 3,640 Deferred revenue ... 393 ------------------ Total Liabilities 18,366 23,300 ------------------ Retained Earnings: Unreserved (15,185) (13,300) ------------------ TOTAL LIABILITIES AND FUND EQUITY $ 3,181 $ 10,000 92 CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEARS ENDED SEPTEMBER 30, 1992 AND 1991 ________---- TOTALS ------------------------ 1992 1991 Operating Revenues: Charges for services $ 206,285 $ 209,889 Insurance stop -loss payments 10,479 --------- 34,881 --------- Total Operating Revenues 216,764 --------- 244,770 --------- Operating Expenses: Life insurance premiums 11,242 15,007 Re -insurance premiums 43,371 38,806 Administrative fees 11,023 7,378 Medical claims 153,206 --------- 201,253 --------- Total Operating Expenses 218,842 --------- 262,444 --------- Operating Income (Loss) (2,078) (17,674) Nonoperating Revenues: Interest revenue 193 --------- 945 --------- Net Income (1,885) (16,729) Retained Earnings - October l (13,300) --------- 3,429 --------- RETAINED EARNINGS - SEPTEMBER 30 $ (15,185) --------- --------- $ (13,300) --------- -------- 93 CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND COMPARATIVE STATEMENT OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 1992 AND 1991 ----x--s�----a=a=cxx--------==xeaxxa==xxxaa===xxaaaa==xxa=a=xxa=xx=a=------- TOTALS ------------------------ 1992 1991 Cash Flows From Operating Activities: Cash received from customers $ 228,269 $ 238,804 Cash payments to suppliers (65,636) (61,191) Cash payments for medical claims (162,694) (189,919) ------------------ Net Cash Provided (Used) By Operating Activities (61) (12,306) ------------------ Cash Flows From Investing Activities: Interest 193 945 ------------------ Net Increase (Decrease) in cash 132 (11,361) Cash at Beginning of Year ... 11,361 ------------------ Cash at End of Year $ 132 $ ... Reconciliation of Operating Income to Net Cash Provided (Used) By Operating Activities: Operating income Adjustments to Reconcile Operating Income to Net Cash Provided (Used) By Operating Activities: Decrease (Increase) in receivables Increase (Decrease) in payables Net Cash Provided (Used) By Operating Activities $ (2,078) $ (17,674) ------------------ 6,951 (10,000) (4,934) 15,368 ------------------ $ (61) $ (12,306) 94 F/D UC/A R Y FUND T YPES 95 THIS PAGE INTENTIONALLY LEFT BLANK M. TRUST AND AGENCY FUNDS Trust Funds are used to account for assets held by the City in a trustee capacity. Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. NON -EXPENDABLE TRUST FUND CEMETERY PERPETUAL CARE FUND 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. PENSION TRUST FUNDS GENERAL EMPLOYEES PENSION TRUST FUND To account for the accumulation of resources to be used for the retirement annuities of all full-time permanent employees, except police officers and volunteer firefighters. The City maintains Defined Benefit and Defined Contribution Plans for its general employees. Annual contributions made to the Defined Benefit Plan are in accordance with an actuarial study, whereas, a fixed percentage of employees salaries is used in determining the annual contribution to the Defined Contribution Plan. POLICE OFFICERS PENSION TRUST FUND To account for the accumulation of resources to be used for the retirement annuities of all police officers. The State contributes money based upon the number of police officers and the City contributes an amount determined by an actuarial study. VOLUNTEER FIREFIGHTERS PENSION TRUST FUND To account for the accumulation of resources to be used for the retirement annuities of all volunteer firefighters. The State contributes money based upon the number of firefighters and the City contributes an amount determined by an actuarial study. AGENCY FUND DEFERRED COMPENSATION FUND To account for assets held for employees in accordance with the provisions of Internal Revenue Code Section 457. 97 THIS PAGE INTENTIONALLY LEFT BLANK 98 CITY OF CLERMONT, FLORIDA TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1991 NONEXPENDABLE AGENCY PENSION TRUST FUNDS ------------------------------------ TRUST FUND ---------- FUND -------- TOTALS -------------------------- EMPLOYEES' GENERAL DEFERRED ASSETS ------ EMPLOYEES ----------- POLICE FIRE ------ ---- CEMETERY -------- COMPENSATION ------------ 1992 ---- 1991 ---- Cash $ ... $ ... $ ... $ 8,645 $ ... $ 8,645 $ 5,223 Investments 1,128,485 778,756 221,217 177,025 59,243 2,364,726 2,121,119 Receivables: Interfund 1,119 ----------- 64,411 35 ------------------ ... --------- ... --------- 65,565 ----------- 23,824 ----------- TOTAL ASSETS $ 1,129,604 $ 843,167 $ 221,252 $ 185,670 $ 59,243 $ 2,438,936 $ 2,150,166 LIABILITIES AND FUND BALANCES ----------------------------- Liabilities: Interfund payables Deferred compensation payable Total Liabilities Fund Balances: Reserved for cemetery care Reserved for employees' retirement systems Total Fund Balance TOTAL LIABILITIES AND FUND BALANCES $ 163 $ 21 $ ... $ ... $ $ 184 $ ... ... ... 59,243 59,243 52,273 ----------------------------- ------------------ ---------------------- 163 21 ... ... 59,243 59,427 52,273 ----------- ------------------ ---------------------------------------- 185,670 ..„ 185,670 173,970 1,129,441 843,146 221,252 ... 2,193,839 1,923,923 ----------- --------- ------------------ ------------------------------- 1,129,441 843,146 221,252 185,670 ... 2,379,509 2,097,893 ----------- --------- ------------------------------------------------- $ 1,129,604 $ 843,167 $ 221,252 $ 185,670 $ 59,243 $ 2,438,936 $ 2,150,166 99 CITY OF CLERMONT, FLORIDA TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1991 GENERAL EMPLOYEES' ------------ Operating Revenues: Investment earnings $ 108,657 Contributions: ----------- State Employees Employer 57,172 Total Contributions 57,172 Cemetery lot sales ----------- Total Operating Revenues 165,829 Operating Expenses: Recurring benefit payments 49,802 Nonrecurring benefit payments 15,282 Trustee fees and expenses 15,374 Total Operating Expenses 80,458 Net Income 85,371 Fund Balances - October 1 1,044,070 FUND BALANCES - SEPTEMBER 30 $ 1,129,441 100 NONEXPENDABLE PENSION TRUST FUNDS TRUST FUND TOTALS -------------------------- ------------ -------------------------- TOTAL POLICE FIRE PENSION FUNDS CEMETERY 1992 1991 ------ ------------------------- ---- ---- $ 73,943 $ ---------------------- 20,938 $ 203,538 ----------- $ ... ----------- $ 203,538 ----------- $ 331,685 ----------- 35,449 10,574 46,023 ... 46,023 40,757 4,448 183 4,631 ... 4,631 4,327 97,311 ---------------------- ... 154,483 ----------- ... ----------- 154,483 ----------- 82,073 ----------- 137,208 10,757 205,137 ... ----------- 205,137 ----------- 127,157 ----------- ---------------------- ... ---------------------- ... ----------- ... ----------- 11,700 ----------- 11,700 ----------- 13,950 ----------- 211,151 ---------------------- 31,695 408,675 ----------- 11,700 ----------- 420,375 ----------- 472,792 ----------- 29,547 790 80,139 ... 80,139 62,012 14,592 ... 29,874 ... 29,874 14,530 8,970 ---------------------- 4,402 28,746 ----------- ... ----------- 28,746 ----------- 30,278 ----------- 53,109 ---------------------- 5,192 138,759 ----------- ... ----------- 138,759 ----------- 106,820 ----------- 158,042 26,503 269,916 11,700 281,616 365,972 685,104 ---------------------- 194,749 1,923,923 ----------- 173,970 ----------- 2,097,893 ----------- 1,731,921 ----------- $ 843,146 $ 221,252 $ 2,193,839 $ 185,670 $ 2,379,509 $ 2,097,893 101 CITY OF CLERMONT, FLORIDA NONEXPENDABLE TRUST FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1991 aassavaaaaaaaaaasaaaaaaaaaaaaaaaaaaaaaaasaxamsxaxs:as:aaaxxassaaaaaaxxamaxasxaxasaaa Cash Flows from Operating Activities: Cash received from lot sales Net Cash Provided by Operating Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Cash Provided by Operating Activities TOTALS -------------------------- 1992 1991 $ 11,700 $ 13,950 ------------------ 11,700 13,950 ------------------ 11,700 13,950 173,970 160,020 ------------------ $ 185,670 $ 173,970 $ 11,700 $ 13,950 x=ssxasx==xx=sx=sx 102 CITY OF CLERMONT, FLORIDA DEFERRED COMPENSATION AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED SEPTEMBER 30, 1992 ----__--_—_____________________ ____ ___________________ Investments $ 59,243 Deferred Compensation Payable Beginning Balance $ 52,273 Add: Employee Contributions $ 7,068 Income on Investments 4,797 Less: Administrative Fees (95) Withdrawals (4,800) 6,970 Total Deferred Compensation Payable Ending Balance $ 59,243 103 THIS PAGE INTENTIONALLY LEFT BLANK 104 ACCOUNT GROUPS 105 THIS PAGE INTENTIONALLY LEFT BLANK 106 ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP This is a self -balancing account group used to record the fixed assets of the City which are not used in Proprietary Fund operations or accounted for in Trust Funds. GENERAL LONG-TERM DEBT ACCOUNT GROUP This is a self -balancing account group used to record the principal portion of the Citys' General Long -Term Debt which are not related to the Proprietary Fund operations or accounted for in Trust Funds. 107 CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL FIRED ASSETS BY SOURCES SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1991 General Fixed Assets: Land Buildings Improvements other than buildings Equipment and vehicles Total General Fixed Assets Investments in General Fixed Assets From: Capital Projects Funds: Revenue bonds Federal, state and local grants General Fund revenues Special Revenue Fund revenues Gifts and other Total Investment in General Fixed Assets TOTALS ------------------------------ 1992 1991 $ 806,732 $ 806,732 1,613,306 1,276,264 3,038,571 2,808,533 1,103,103 ----------- 1,048,106 ----------- $ 6,561,712 $ 5,939,635 $ 1,857,604 $ 1,570,930 324,207 211,707 3,027,118 2,903,072 1,278,662 1,217,504 74,121 ----------- 36,422 ----------- $ 6,561,712 $ 5,939,635 108 CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AS OF SEPTEMBER 30, 1992 IMPROVEMENTS OTHER THAN FUNCTION ----------------------------------- TOTAL LAND ---------- BUILDINGS ---------- BUILDINGS ------------------------ EQUIPMENT General government $ 226,751 $ ... $ 20,320 $ ... $ 206,431 Public safety 818,610 81,424 205,940 ... 531,246 Physical environment 1,100,015 47,168 721,814 74,483 256,550 Transportation 1,292,338 ... ... 1,270,321 22,017 Culture/recreation 2,642,813 450,032 579,962 1,547,394 65,425 Older assets not maintained by function ----------- 481,185 228,108 --------- 85,270 ----------- 146,373 ---------------------- 21,434 TOTAL GENERAL FIXED ASSETS $ 6,561,712 $ 806,732 $ 1,613,306 $ 3,038,571 $ 1,103,103 109 CITY OF CLERMONT, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION YEAR ENDED SEPTEMBER 30, 1992 GENERAL GENERAL FIXED FIXED ASSETS ASSETS FUNCTION ------------------------------- 9/30/91 ----------- ADDITIONS ----------- DEDUCTIONS 9/30/92 --------------------- General government $ 221,554 $ 5,197 $ ... $ 226,751 Public safety 716,493 102,117 ... 818,610 Physical environment 901,921 198,094 ... 1,100,015 Transportation 1,292,338 ... ... 1,292,338 Culture/recreation 2,326,144 316,669 ... 2,642,813 Older assets not maintained by function 481,185 ----------- ... ----------- ... 481,185 -------------------- TOTAL GENERAL FIXED ASSETS $ 5,939,635 $ 622,077 $ ... $ 6,561,712 110 CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL LONG-TERM DEBT SEPTEMBER 30, 1992 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1991 TOTALS ------------------------------ 1992 1991 Amount To Be Provided For The Payment of General Long -Term Debt ------------------------- Amount available in debt service fund $ 41,666 Amount to be Provided 1,856,313 Total to be Provided $ 1,897,979 General Long -Term Debt Payable ------------------------------ Revenue bonds payable $ 1,840,000 Note payable - Library 57,979 Total General Long -Term Debt Payable $ 1,897,979 ill $ 40,000 1,982,396 $ 2,022,396 $ 1,960,000 62,396 $ 2,022,396 THIS PAGE INTENTIONALLY LEFT BLANK 112 STATISTICAL SECTION Statistical tables differ from financial statements because they cover more than one fiscal year and may present nonaccounting data. These tables reflect social and economic data, financial trends, and the fiscal capacity of the City. CITY OF CLERMONT, FLORIDA COMMENTS ON THE STATISTICAL SECTION SEPTEMBER 30, 1992 The following Statistical Tables recommended by the National Council on Governmental Accounting are not included for the reasons stated below: Tables which concern General Obligation Debt are omitted because neither the City or other overlapping governments have incurred an tax - supported debt. The Legal Debt Margin Computation Table is not presented because there is no law or ordinance which sets the maximum amount of debt the City is legally permitted to issue. 113 CITY OF CLERMONT, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS FISCAL GENERAL YEAR GOVERNMENT 1982-83 $ 260,694 1983-84 279,766 1984-85 292,866 1985-86 290,427 1986-87 330,335 1987-88 340,666 1988-89 392,504 1989-90 464,818 1990-91 440,789 1991-92 397,880 PUBLIC PHYSICAL SAFETY ENVIRONMENT $ 392,050 $ 74,611 383,408 88,225 473,732 67,810 468,671 78,904 521,365 68,484 588,430 170,197 691,581 95,476 767,734 99,084 830,411 99,989 931,441 101,512 (1) Includes General and Special Revenue Funds 114 TABLE 1 ECONOMIC HUMAN CULTURE AND TRANSPORTATION ENVIRONMENT SERVICES RECREATION TOTAL $ 343,390 $ -0- $ 8,961 $ 191,583 $1,271,289 286,392 -0- 9,248 186,874 1,233,913 272,092 -0- 9,795 155,425 1,271,720 298,605 -0- 11,212 196,486 1,344,305 383,373 2,275 11,329 397,817 1,714,978 461,718 1,175 13,027 283,504 1,858,717 282,696 1,780 12,864 303,943 1,780,844 442,340 9,596 18,703 421,271 2,223,546 330,476 9,283 13,665 435,748 2,160, 361 249,736 11,817 13,650 503,764 2,209,800 115 CITY OF CLERMONT, FLORIDA GENERAL REVENUE BY SOURCE (1) LAST TEN FISCAL YEARS LICENSES FISCAL AND INTER - YEAR TAXES PERMITS GOVERNMENTAL 1982-83 $ 597,800 $ 36,952 $ 440,349 1983-84 597,779 45,022 529,181 1984-85 684,898 26,452 581,406 1985-86 740,694 20,768 573,334 1986-87 873,029 21,154 493,684 1987-88 913,493 30,000 767,159 1988-89 954,977 18,931 847,765 1989-90 1,143,268 25,688 918,517 1990-91 1,281,612 28,917 786,966 1991-92 1,676,117 41,127 721,510 (1) Includes General and Special Revenue Funds (2) For Fiscal Years including 1988-89 and prior, the City accounted for expenditure reimbursements from other funds as revenues. Effective the 1989-90 Fiscal Year, expenditure reimbursements are accounted for as reduction of expenditures. 116 TABLE 2 (2) CHARGES FINES INTEREST FOR AND ON SERVICES FORFEITURES INVESTMENTS MISCELLANEOUS TOTAL $ 57,830 $ 30,105 $ 112,081 $ 51,393 $1,326,510 57,126 40,030 128,838 38,744 1,436,720 56,683 32,418 217,036 44,354 1,543,247 56,572 31,266 85,436 49,901 1,557,971 81,634 30,288 90,575 29,671 1,620,035 85,964 30,199 119,041 36,172 1,982,028 91,679 34,252 124,473 44,905 2,116,982 8,585 40,572 144,963 33,057 2,314,650 19,327 69,571 106,962 66,917 2,360,272 32,676 90,039 84,415 55,515 2,701,399 117 CITY OF CLERMONT, FLORIDA PROPERTY TAX LEVIES, TAX COLLECTIONS AND ASSESSED VALUATIONS LAST TEN FISCAL YEARS (2) ESTIMATED (1) (4) FISCAL TAX ACTUAL ASSESSED TAX YEAR YEAR VALUE VALUATION RATE 1982-83 1982 $ 86,049,990 $ 77,444,991 2.793 1983-84 1983 95,144,392 85,629,953 2.595 1984-85 1984 97, 405, 919 87, 665, 327 2.626 1985-86 1985 110,465,368 99,418,831 2.429 1986-87 1986 122,164,883 109,948,395 2.429 1987-88 1987 129, 039, 378 116,135, 440 2.429 1988-89 1988 136,281,589 122,653,430 2.429 1989-90 1989 157,547,919 141,793,127 2.429 1990-91 1990 164,683,728 148,215,355 2.729 1991-92 1991 185,301,076 166,770,968 2.729 (1) Final Gross taxable assessed valuation per Lake County Property Appraisers' form DR-422 (2) The Florida Department of Revenue has certified the Lake County Tax Rolls as being at least 90% of the estimated actual value of property within the County. Therefore, the estimated actual values shown are calculations based on the 90% certification (3) Outstanding delinquent taxes are not available from the Lake County Tax Collection's office (4) Tax rate per $1,000 of taxable valuation 118 TAX CURRENT TAX LEVY COLLECTIONS RATIO OF CURRENT TAX COLLECTIONS TO TOTAL TAX LEVY (3) DELINQUENT TAX COLLECTIONS TOTAL TAX COLLECTIONS TABLE 3 RATIO OF TOTAL TAX COLLECTIONS TO TOTAL TAX LEVY $ 216,304 $ 211,482 97.8% $ 41 $ 211,523 97.0% 222,209 213,009 95.9% 152 213,161 97.6% 230,208 223,870 97.2% 795 224,665 96.9% 241,489 233,841 96.8% 200 234,041 96.9% 267,064 258,641 96.8% 212 258,853 97.2% 282,092 274,014 97.1% 124 274,138 97.2% 297,925 291,555 97.9% 458 292,013 98.0% 344,416 333,058 96.7% 191 333,249 96.8% 404,480 392,259 97.0% 1,095 393,354 97.2% 455,118 439,404 96.5% 2,045 441,449 97.0% 119 CITY OF' CLERMONT, FLORIDA PROPERTY TAX RATES - DIRECT AND ALL OVERLAPPING GOVERNMENTS (1) LAST TEN FISCAL YEARS (2) LAKE COUNTY OKLAWAHA FISCAL TAX LAKE SCHOOL WATER YEAR YEAR CITY COUNTY DISTRICT DISTRICT 1982-83 1982 2.793 2.732 5.478 .040 1983-84 1983 2.595 3.273 7.073 .350 1984-85 1984 2.626 3.272 5.606 .281 1985-86 1985 2.429 3.492 6.415 .262 1986-87 1986 2.429 3.400 6.608 .300 1987-88 1987 2.429 3.400 7.477 .350 1988-89 1988 2.429 3.800 7.742 .838 1989-90 1989 2.429 4.938 8.451 .621 1990-91 1990 2.729 4.938 8.749 .771 1991-92 1991 2.729 4.938 8.880 .751 (1) Information was obtained from the City of Clermont Tax Rolls, as prepared by the Lake County Property Appraisers, office (2) Tax rate per $1,000 of taxable valuation 120 TABLE 4 SOUTH LAKE SOUTH LAKE ST. JOHNS RIVER HOSPITAL AMBULANCE WATER MGMNT DISTRICT DISTRICT DISTRICT TOTAL .370 .710 .290 12.413 .500 1.000 .281 15.072 1.000 1.000 .281 14.066 1.000 1.000 .358 14.956 .942 .942 .491 15.112 1.000 1.000 .517 16.173 1.000 1.000 .281 17.090 1.000 1.000 .346 18.785 1.000 1.000 .358 19.545 1.000 1.000 .358 19.656 121 THIS PAGE INTENTIONALLY LEFT BLANK 122 CITY OF CLERMONT, FLORIDA SPECIAL ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS FISCAL YEAR COLLECTIONS 1982-83 $ 12,370 1983-84 1,458 1984-85 805 1985-86 1,696 1986-87 -0- 1987-88 -0- 1988-89 -0- 1989-90 -0- 1990-91 -0- 1991-92 -0- 123 TABLE 5 BALANCE 4, 4.54 2,996 2,191 495 495 495 495 495 495 495 CITY OF CLERMONT, FLORIDA UTILITY REVENUE BOND COVERAGE - ALL UTILITY REVENUE BONDS LAST TEN FISCAL YEARS (1) (3) OPERATION & FISCAL GROSS MAINTENANCE YEAR REVENUES COSTS 1982-83 $ 766,042 $ 417,257 1983-84 800,364 443,020 1984-85 854,646 479,728 1985-86 862,865 491,152 1986-87 983,628 512,425 1987-88 1,056,616 607,451 1988-89 1,118, 064 627,603 1989-90 1,092,768 731,397 1990-91 1,062,790 743,715 1991-92 1,140,249 725,969 (1) Excludes interest expense and depreciation (2) Maximum debt service in any subsequent year is $3 259 (3) Excludes interest revenue 124 TABLE 6 (2) DEBT NET SERVICE REVENUE REQUIREMENTS COVERAGE $ 348,785 $ 241,687 1.44% 357,344 332,235 1.08% 374,918 423,537 .89% 371,713 274,573 1.35% 471,203 253,675 1.86% 449,165 310,128 1.45% 490,461 302,628 1 .62% 361,371 327,330 1.10% 319,075 335,579 .95% 414,280 339,689 1.22% 125 CITY OF CLERMONT, FLORIDA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (2) PER FISCAL (1) CAPITA MEDIAN YEAR POPULATION INCOME AGE 1982-83 5,598 $ 10,894 N/A 1983-84 5,745 11,820 N/A 1984-85 5,928 N/A N/A 1985-86 6,114 N/A N/A 1986-87 6,379 N/A N/A 1987-88 6,623 N/A N/A 1988-89 6,642 N/A N/A 1989-90 6,910 N/A N/A 1990-91 6,910 N/A N/A 1991-92 6,930 N/A N/A DATA SOURCES: (1) College of Business Administration, University of Florida - Bureau of Economic and Business Research (2) Information available on Countywide basis only. Data was obtained from the Florida Statistical Abstract - Table 5.10 (3) Figures represent Grades K-12 in Public Schools. Source - Department of Education (4) Information available on countywide basis only. Data was obtained from the Florida Department of Labor, Bureau of Labor Market Information 126 EDUCATION LEVEL IN YEARS OF FINAL SCHOOLING (3) SCHOOL ENROLLMENT TABLE 7 (4) UNEMPLOYMENT RATE N/A 1,462 15.9% N/A 1,538 13.1% N/A 1,582 12.0% N/A 1,635 8.8% N/A 1,647 7.4% N/A 1,670 6.1% N/A 1,788 7.7% N/A 1,897 6.2% N/A 1,975 8.7% N/A 2,169 7.4% 127 CITY OF CLERMONT, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS (2) (2) COMMERCIAL RESIDENTIAL CONSTRUCTION CONSTRUCTION FISCAL #OF #OF YEAR UNITS VALUE UNITS VALUE 1982-83 4 $ 2,071,040 32 $ 1,424,778 1983-84 10 1,425,910 37 2,432,103 1984-85 10 3,234,000 69 3,102,300 1985-86 4 559,360 30 2,197,400 1986-87 6 1,874,085 75 4,188,500 1987-88 .4 270,000 45 2,438,200 1988-89 1 100,000 55 3,323,000 1989-90 7 367,000 48 3,036,250 1990-91 1 480,000 12 1,214,600 1991-92 6 1,902,000 28 2,177,500 (1) Information available on Countywide basis only Data was obtained from the Florida Bankers Association (2) City of Clermont zoning clearances (3) Taxable assessed valuation per Lake county Property Appraisers' form DR-422 (4) Non -Taxable assessed valuation per Florida Department of Revenue 128 BANK DEPOSITS ASSESSED TAXABLE (3) PROPERTY VALUE (4) TAXABLE TABLE 8 NONTAXABLE $ 633, 279, 000 $ 77, 444, 991 $ 36, 371, 903 728, 844, 000 85, 629, 953 40, 683, 419 813,539,000 87,665,327 42,233,196 891,753,000 99,418,831 42,431,755 1, 006, 641, 000 109, 948, 395 42, 053, 436 1, 084, 036, 000 116,135, 440 43, 489, 330 1, 322, 027, 000 122, 653, 430 44, 615, 271 1, 523, 941, 000 141, 793,127 47, 279, 344 1, 624, 935, 000 148,215, 355 47, 907, 074 1, 628, 750, 000 166, 770, 968 49, 624, 516 129 CITY OF CLERMONT, FLORIDA PRINCIPAL TAXPAYERS TAXPAYER Chester C. Fosgate Co. P.O. Box 1598 Winter Park, Fla. 32789 John Hurtak South Lake Plaza/K-Mart 525 N.E. 58th Street Miami, Fla. 33137 Lake Highlands Retirement and Nursing Center, Inc. 151 E. Minnehaha Avenue Clermont, Fla. 34711 Patrick G. Kelley, Trustee c/o Marvin F. Poer 2301 Lucien Way, Suite 330 Maitland, Fla. 32751 Eastern Shores Mobile Homes 10 Camino Real Drive Edgewater, Fla. 32032 Oceanfront Properties 5502 Park Avenue W. (Emerald Lakes Shopping Center) New York, New York 07093 Florida Citrus Tower 6175 N.W. 153rd Street Miami, Fla. 33014 Richard Reynolds Winn -Dixie Shopping Center 13148 Palmer Road Clermont, Fla. 34711 L & F Groves c/o A. E. Langley 6088 Masters Blvd. Orlando, Fla. 32819 Oakridge Apartments P.O. Box 1811 Lake Mary, Fla. 32749 TOTAL ASSESSED VALUATION AS OF 111192, $ 5,112,697 4,250, 636 2,620,340 2,222,803 1,449,760 1,269,807 1,268,781 1,193, 780 1,170,155 941,019 $ 21,, 499, 778 TABLE 9 PERCENTAGE OF TOTAL ASSESSED VALUATION Source: 1992 City of Clermont Tax Roll, prepared by the Lake County Property Appraiser's Office. 130 3.07% 2.55% 1.57% 1.33% .87% .76% .76% . 72 % .70% .56% 122..89% CITY OF CLERMONT, FLORIDA TABLE 10 PENSION EXPENSES BY TYPE - ALL PENSION PLANS LAST TEN FISCAL YEARS FISCAL BENEFIT ADMINISTRATION YEAR PAYMENTS REFUNDS FEES TOTAL General Employee Plan 1982-83 $ 8,009 $ -0- $ 2,189 $ 10,198 1983-84 35,755 -0- 2,592 38,347 1984-85 11,565 -0- 2,241 13,806 1985-86 12,529 -0- 4,170 16,699 1986-87 15,667 -0- 3,423 19,090 1987-88 17,840 -0- 12,552 30,392 1988-89 26,586 -0- 7,370 33,956 1989-90 22,649 14,056 17,016 53,721 1990-91 45,240 13,796 16,532 75,568 1991-92 49,802 15,282 15,374 80,458 Police Officers Plan 1982-83 -0- -0- 1,198 1,198 1983-84 -0- -0- 1,451 1,451 1984-85 -0- -0- 1,305 1,305 1985-86 -0- -0- 2,564 2,564 1986-87 105 -0- 1,437 1,542 1987-88 -0- 683 8,114 8,797 1988-89 3,671 -0- 3,162 6,833 1989-90 13,240 680 12,059 25,979 1990-91 15,958 734 9,414 26,106 1991-92 29,547 14,592 8,970 53,109 Volunteer Firemen Plan 1982-83 -0- -0- 638 638 1983-84 -0- -0- 850 850 1984-85 -0- -0- 850 850 1985-86 -0- -0- 1,816 1,816 1986-87 -0- -0- 862 862 1987-88 3,500 -0- 1,719 5,219 1988-89 -0- -0- 968 968 1989-90 -0- 6,213 6,148 12,361 1990-91 814 -0- 4,332 5,146 1991-92 790 -0- 4,402 5,192 131 THIS PAGE INTENTIONALLY LEFT BLANK 132 CITY OF CLERMONT, FLORIDA TABLE 11 PENSION REVENUES BY SOURCE - ALL PENSION PLANS LAST TEN FISCAL YEARS INVESTMENT FISCAL EMPLOYEE EMPLOYER STATE EARNINGS YEAR CONTRIBUTION CONTRIBUTION CONTRIBUTION _ (LOSS)- TOTAL General Employee Plan 1982-83 $ -0- $ 40,591 $ -0- $ 24,991 $ 65,582 1983-84 -0- 40,994 -0- 29,809 70,803 1984-85 -0- 28,801 -0- 35,602 64,403 1985-86 -0- 41,988 -0- 140,928 182,916 1986-87 -0- 44,367 -0- 102,014 146,381 1.987-88 -0- 43,948 -0- 1,887 45,835 1988-89 -0- 45,544 -0- 131,931 177,475 1989-90 -0- 79,746 -0- (22,128) 57,618 1990-91 -0- 82,073 -0- 182,090 264,163 1991-92 -0- 57,172 -0- 108,657 165,829 Police Officers Plan 1982-83 -0- 11,418 9,547 17,010 37,975 1983-84 -0- 11,672 12,660 23,823 48,155 1984-85 -0- 7,665 15,606 26,695 49,966 1985-86 -0- 7,738 17,904 28,773 54,415 1986-87 2,550 760 22,348 59,920 85,578 1987-88 2,714 25,573 26,429 2,302 57,018 1988-89 3,447 -0- 25,539 85,719 114,705 1989-90 3,695 -0- 29,226 (13, 030) 19,891 1990-91 4,217 -0- 31,163 116,670 152,050 1991-92 4,448 97,311 35,449 73,943 211,151 Volunteer Firemen Plan 1982-83 -0- 425 3,580 7,159 11,164 1983-84 -0- -0- 3,898 8,490 12,388 1984-85 -0- -0- 5,118 8,945 14,063 1985-86 -0- -0- 5,432 8,949 14,381 1986-87 60 -0- 7,246 18,494 25,800 1987-88 62 -0- 8,137 529 8,728 1988-89 58 -0- 8,870 24,032 32,960 1989-90 68 -0- 12,351 (3,427) 8,992 1990-91 110 -0- 9,594 32,925 42,629 1991-92 183 -0- 10,574 20,938 31,695 133 CITY OF CLERMONT, FLORIDA PENSION TREND DATA - DEFINED BENEFIT PLANS LAST TEN FISCAL YEARS NET ASSETS PENSION AVAILABLE BENEFIT NET ASSETS FISCAL FOR OBLIGATION AS A % YEAR BENEFITS (PBO) OF PBO General Employees Plan 1982-83 $ NIA $ N/A N/A A NIA /A N/A 1984-85 N/A N/A N/A 1985-86 N/A N/A N/A 1986-87 578,304 648,593 89.16% 1987-88 563,380 687,546 81.94% 1988-89 647,116 687,546 94.12% 1989-90 652,038 830,772 78.49% 1990-91 757,437 750,262 100.96% 1991-92 747,713 734,907 101.74% Police Officers Plan 1982-83 $ N/A $ N/A N/A 1983-84 N/A N/A N/A 1984-85 NIA NIA / 1985-86 N/A N/A N/A 1986-87 414,948 726,356 57.13% 1987-88 457,376 761,746 60.01% 1988-89 565,254 761,746 74.21% 1989-90 559,160 642,442 87.04% 1990-91 685,104 681,911 100.47% 1991-92 778,984 725,418 107.38% Volunteer Firemen Plan 1982-83 $ N/A $ N/A N/A 1983-84 NIA NIA NIA 1984-85 N/A N/A N/A 1985-86 N/A N/A N/A 1986-87 125,134 33,116 377.87% 1987-88 128,643 27,194 473.06% 1988-89 160,632 27,194 590.69% 1989-90 1990-91 157,266 194,749 15,130 1039.43% 1991-92 221,249 16,544 24,882 1177.16% 889.19% SOURCE: Annual Pension Evaluations 134 UNFUNDED PENSION BENEFIT OBLIGATION (UPBO) EMPLOYER/ STATE CONTRIBUTION EMPLOYER/STATE CONTRIBUTION ANNUAL AS A % OF COVERED COVERED PAYROLL PAYROLL TABLE 12 UPBO AS A% OF ANNUAL COVERED PAYROLL $ N/A $ N/A $ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 70,289 14,899 169,117 8.81% 41.56% 124,166 11,760 179,264 6.56% 69.26% 40,430 8,805 157,669 5.58% 25.64% 178,734 38,481 134,279 28.65% 133.11% ( 7,175) 38,690 129,278 29.93% ( 5.55) % (12,806) 11,556 108,230 10.68% (11.83)% $ N/A $ N/A $ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 311,408 23,052 255,000 9.04% 122.12% 304,370 51,990 283,789 18.32% 107.25% 196,492 25,539 349,356 7.31% 56.24% 83,282 29,226 367,590 7.95% 22.66% ( 3,193) 31,163 410,608 7.59% ( .78)% (53,566) 132,760 439,908 30.18% ( 12.18)% $ N/A $ N/A $ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A ( 92,018) 7,159 6,100 117.36% (1508 .49) % ( 101, 449) 8,137 6,174 131. 79% (1643 .16) % ( 133,438) 8,870 6,140 144.46% (2173.25)% ( 142,136) 12,351 6,927 178 .30% (2051.91) % ( 178, 205) 9,594 11,531 83 .20% (1545.44) % ( 196, 367) 10,574 18,076 58 .50% (1086.34) % 135 CITY OF CLERMONT, FLORIDA SCHEDULE OF INSURANCE COVERAGES SEPTEMBER 30, 1992 POLICY EXPIRATION TYPE OF COVERAGE & INSURER NUMBER DATE LIABILITY Florida Municipal FML 304 09130192 Liability Self Insurer's Program WORKERS COMPENSATION Florida Municipal Self Insurers Fund FM 389 09130192 FIRE AND EXTENDED COVERAGE Florida Municipal Property FMP 49 10101192 Self -Insurers Program 136 TABLE 13 DETAILS LIMITS General Liability $100,000/Person Bodily Injury Liability $200,000/0ccurrence Auto Liability Law Enforcement Liability Specific Excess Liability $1,500,000/0ccurrence Public Officials Errors and Omissions Liability $1,500,000/0ccurrence Finance Director -Bond $100,000 Public Employees Blanket Bond $ 5,000 Accidental Death-Police/Fire $ 50,000 Statutory Workers Compensation $100,000/500,000 Blanket Building per Schedule and Property $8,989,264 137 CITY OF CLERMONT, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 1992 Date of Incorporation 1916 Present Charter Adopted 1962 Form of Government Council -Manager Number of Councilmen Five (5) TERM OF OFFICE: Mayor/Councilmen Two years (2) City Manager Appointed AREA OF CITY: Municipal Boundaries 5 square miles Miles of Streets 46 Number of Street Lights 699 FIRE PROTECTION: Number of Stations 1 Number of Volunteer Firemen 25 Number of Fire Hydrants 227 POLICE PROTECTION: Number of Stations 1 Number of Police Officers 17 EDUCATION: Number of Schools: Elementary 1 Middle 1 High School 1 Number of Teachers 95 Number of Students 2,169 MUNICIPAL WATER DEPARTMENT: Number of Consumers 2,692 Average Daily Consumption 1,383,600 gallons Miles of Water Mains 45 miles WASTEWATER AND SANITARY SEWERS: Sanitary Sewers 55 miles Storm Sewers 10 miles RECREATIONAL AND CULTURE Number of Parks 22 with 88 acres Number of Libraries 1 Number of Volumes 31,614 TOTAL CITY EMPLOYEES: Full -Time 73 Part -Time 3 138 OTHER REPORTS GREENLEE CLERMONT: Herbert John Greenlee, Jr., C.P.A JerryD. Brown, C.P.A. KURRAS MOUNT DORA: Dorothy A. Kurras, C.P.A. } RI CE & John S. Rice, C.P.A. Patricia A. Sykes, C.P.A ' BROWN, PA C. L. (Chip) Garner, C.P.A. CERTIFIED PUBLIC John A. Powers, C.P.A. ACCOUNTANTS Mark A. Farner, C.P.A. REPORT ON SUPPLEMENTARY INFORMATION - SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE IndeL ndent Auditor's Report Honorable Mayor and City Council City of Clermont Clermont, Florida We have audited the general purpose financial statements of the City of Clermont, Florida for the year ended September 30, 1992, and have issued our report thereon dated December 6, 1992. These general purpose financial statements are the responsibility of the City of Clermont, Florida's, management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by manage- ment, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Clermont, Florida, taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 9C. Mount Dora, Florida January 5, 1993 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTA1_P AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 752 Montrose Street 627N. Donnelly Street Post Office Box 120400. Clermont FL 34712-0400 Post Office Box 8. Mount Dora, FL 32757 Telephone: (904) 394-3256 Telephone: (904) 383-6300 THIS PAGE INTENTIONALLY LEF17 BLANK 140 CITY OF CLERMONT, FLORIDA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, 1992 FEDERAL RECEIPTS OR FEDERAL GRANTOR/PASS-THROUGH CFDA PROGRAM PROGRAM OR REVENUE DISBURSEMENTS/ GRANTOR/PROGRAM TITLE NUMBER I.D. NUMBER AWARD AMOUNT RECOGNIZED EXPENDITURES ---------------------------- ----------------- ------------ ----------------------- U. S. Department of Housing and Urban Development --------------------------- Passed Through Florida Department of Community Affairs: Community Development Block Grant 14,219 91DB-99-06-45-02-H09 $ 575,000 $ 220,003 $ 35,230 141 THIS PAGE INTENTIONALLY LEFT BLANK 142 GREENLEE CLERMONT: Herbert John Greenlee, Jr., C.P.A KURRAS MOUNTDORA: JerryD. Brown, C.P.A. QQ�S Dorothy A. Kurras, C.P.A. RICE John S. Rice, C.P.A. Patricia A. Sykes, C.P.A BROWN, PA C. L. (Chip) Garner, C.P.A. CERTIFIED PUBLIC John A. Powers, C.P.A. ACCOUNTANTS Mark A. Farner, C.P.A. INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council City of Clermont, Florida We have audited the general purpose financial statements of the City of Clermont, Florida, for the year ended September 30, 1992, and have issued our report thereon dated December 6, 1992. We conducted our audit in accordance with generally accepted auditing standards Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the City of Clermont, Florida, for the year ended September 30, 1992, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Clermont, Florida, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition; and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTAt� 43 AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 752 Montrose Street 627N. Donnelly Street Post Office Box 120400. Clermont FL 34712-0400 Post Office Box 8. Mount Dora, FL 32757 Telephone. (904) 394 3256 Telephone., (904) 383-6300 For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cash and investments Revenues and receivables Inventory Property, equipment Expenditures and payables Debt and debt service Data Processing For all of the control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the City of Clermont, Florida, in a separate letter dated January 5, 1993. This report is intended for the information of the management and the State of Florida. This restriction is not intended to limit the distribution of this report, which is a matter of public record. ��0, �- DuktJ •�• J � Clermont, Florida January 5, 1993 144 _Z. } GREENLEE CLERMONT: Herbert John Greenlee, Jr., C.P.A .I .' KURRAS JerryD. Brown, C.P.A. MOUNT DORA: Dorothy A. Kurras, C.P.A. RICE Q, John S. Rice, C.P.A. (� I < Patricia A. Sykes, C.P.A BROWN, PA C. L. (Chip) Garner, C.P.A. CERTIFIED PUBLIC John A. Powers, C.P.A. ACCOUNTANTS Mark A. Fanner, C.P.A. REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS The Honorable Mayor and City Council City of Clermont, Florida We have audited the general purpose financial statements of the City of Clermont, Florida, as of and for the year ended September 30, 1992, and have issued our report thereon dated December 6, 1992. We conducted our audit in accordance with generally accepted auditing standards and Government Auditin 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 general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Clermont, Florida, is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, our objective was not to provide an opinion on overall compliance with such provisions. The results of our tests indicate that, with respect to the items tested, the City of Clermont, Florida, complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. We noted certain immaterial instances of noncompliance that we have reported to the management of the City of Clermont, Florida, in a separate letter dated January 5, 1993. This report is intended for the information of management and the State of Florida. This restriction is not intended to limit the distribution of this report, which is a matter of public record. Clermont, Florida January 5, 1993 � MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNJ ILS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 752 Montrose Street 627 N. Donnelly Street Post Office Box 120400. Clermont, FL 34712-0400 Post Office Box 8. Mount Dora, FL 32757 Telephone: (904) 394 3256 Telephone: (904) 383-6300 THIS PAGE INTENTIONALLY LEFT BLANK prXI-1 GREENLEE CLERMONT: Herbert John Greenlee, Jr., C.P.A KURRAS MOUNT DORA: JerryD. Brown, C.P.A. Dorothy A. Kurras, C.P.A. RICE & John S. Rice, C.P.A. Patricia A. Sykes, C.P.A i BROWN, PA C. L. (Chip) Garner, C.P.A. CERTIFIED PUBLIC John A. Powers, C.P.A. ACCOUNTANTS Mark A. Farner, C.P.A. INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and City Council City of Clermont Clermont, Florida We have audited the general purpose financial statements of the City of Clermont, Florida, for the year ended September 30, 1992, and have issued our report thereon dated December 6, 1992. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing, Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit for the year ended September 30, 1992, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the City's general purpose financial statements and. not to provide assurance on the internal control structure. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated January 5, 1993. The management of the City of Clermont, Florida, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The ob- jectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 752 Montrose Street 147 627 N. Donnelly Street Post Office Box 120400. Clermont FL 34712-0400 Post Office Box 8. Mount Dora, FL 32757 Telephone: (904) 3943256 Telephone: (904) 383-6300 of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: General Re uirements Political activity Davis -Bacon Act Civil rights Cash management Financial reports Allowable costs/cost principles Drug -Free Workplace Act Administrative requirements Financial Statement Cautions Cash Revenues and receivables Property, equipment Expenditures and payables Fund balance Specific Requirements Types of services allowed Reporting Special requirements - environmental review For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies, and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended September 30, 1992, the City of Clermont, Florida, had no major federal financial assistance programs and expended 100 percent of its total federal financial assistance under the following nonmajor federal financial assistance program: subrecipient of Community Development Block Grant. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the City's nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. 148 This report is intended for the information of management and the State of Florida's Department of Community Affairs. This restriction is not intended to limit the distribution of this report, which is a matter of public record., Mount Dora, Florida January 5, 1993 149 THIS PAGE INTENTIONALLY LEFT BLANK 150 GREENLEE B KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS CLERMONT: Herbert John Greenlee, Jr., C.P.A Jerry D. Brown, C.P.A. MOUNT DORA: Dorothy A. Kurras, C.P.A. John S. Rice, C.P.A. Patricia A. Sykes, C.P.A C. L. (Chip) Garner, C.P.A. John A. Powers, C.P.A. Mark A. Farner, C.P.A. INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAI. FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and City Council City of Clermont Clermont, Florida We have audited the financial statements of the City of Clermont, Florida, as of and for the year ended September 30, 1992, and have issued our report thereon dated December 6, 1992. We have applied procedures to test the City of Clermont, Florida's, compliance with the following requirements applicable to its federal financial assistance program, which is identified in the schedule of 'federal financial assistance, for the year ended September 30, 1992. General Requirements * Political activity * Davis -Bacon Act • Civil rights • Cash management * Financial reports * Allowable costs/cost principles • Drug -Free Workplace Act * Administrative requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments." Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Clermont, Florida's, compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Clermont, Florida, had not complied, in all material respects, with those requirements. Also, the results of our procedures did not disclose any immaterial instances of noncompliance with those requirements. MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANT k AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 752 Montrose Street 627N. Donnelly Street Post Office Box 120400. Clermont FL 34712-0400 Post Office Box 8. Mount Dora, FL 32757 Telephone. (904) 394 3256 Telephone: (904) 383-6300 This report is intended for the information of management, and the State of Florida's Department of Community Affairs. However, this report is a matter of public record and its distribution is not limited. Mount Dora, Florida January 5, 1993 152 GREENLEE KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS CLERMONT: Herbert John Greenlee, Jr., C.P.A Jerry D. Brown, C.P.A. MOUNT DORA: Dorothy A. Kurras, C.P.A. John S. Rice, C.P.A. Patricia A. Sykes, C.P.A C. L. (Chip) Garner, C.P.A. John A. Powers, C.P.A. Mark A. Farner, C.P.A. INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Honorable Mayor and City Council Clermont, Florida We have audited the financial statements of the City of Clermont, Florida, as of and for the year ended September 30, 1992, and have issued our report thereon dated December 6, 1992. In connection with our audit of the 1992 general purpose financial statements of the City of Clermont, Florida, and with our consideration of the City of Clermont, Florida's, internal control structure used to administer federal financial assist- ance programs, as .required by Office of Management and Budget Circular A-128, "Audits of State and Local Governments," we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended September 30, 1992. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed and eligibility* that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Clermont, Florida's, compliance with these require- ments. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Clermont, Florida, had not complied, in all material respects, with those requirements. Also, the results of our procedures disclosed no immaterial instances of noncompliance with those requirements. This report is intended for the information of management, and the State of Florida's Department of Community Affairs. However, this report is a matter of public record and its distribution is not limited. 4 &,, e / Mount Dora, Florida January 5, 1993 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 153 752 Montrose Street 627N. Donnelly Street Post Office Box 120400. Clermont, FL 34712-0400 Post Office Box 8. Mount Dora, FL 32757 Telephone: (904) 394 3256 Telephone: (904) 383-6300 THIS PAGE INTENTIONALLY LEFT BLANK 154 r 9 GREENLEE KURRAS ir RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS CLERMONT: Herbert John Greenlee, Jr., C.P.A JerryD. Brown, C.P.A. MOUNT DORA: Dorothy A. Kurras, C.P.A. John S. Rice, C.P.A. Patricia A. Sykes, C.P.A C. L. (Chip) Garner, C.P.A. John A. Powers, C.P.A. Mark A. Farner, C.P.A. MANAGEMENT LETTER The Honorable Mayor and City Council City of Clermont, Florida This report contains our comments as required by Chapter 10.554(1), Rules of the Auditor General, Local Governmental Entity Audits, for the City of Clermont, Florida, for the year ended September 30, 1992. Subparagraph (1) refers to whether irregularities reported in the preceding annual financial audit have been corrected. There were no irregularities reported in the preceding annual financial audit. Subparagraph (2) refers to whether recommendations made in the preceding annual audit have been followed. We made no recommendations in the prior year. Subparagraph (3) refers to the City's being in a state of financial emergency during the fiscal year. The City did not experience any of the conditions described in Section 218.503(1) of Florida Statutes. Subparagraph (4) refers to recommendations to improve the City's accounting procedures and internal controls. We offer no recommendations in this area. Subparagraph (5) refers to violations of laws, rules and regulations discovered within the scope of the financial audit. We noted the following violation: The Water and Sewer Revenue Bond, 1972 series, covenant requires the City to have an audit within sixty (60) days of its year end. The audit was started but not completed during this time. Subparagraph (6) refers to illegal or improper expenditures discovered within the scope of the financial audit. We did not discover any illegal or improper expenditures. Subparagraph (7)(a)(b) and (d) requires disclosure of improper or inadequate accounting procedures, failures to properly record financial transactions, and other inaccuracies, irregularities, shortages, and defalcations discovered. Our examination did not discover any of the above items which would require disclosure. Adjustments were made to the City's accounts for the year ended September 30, 1992. All adjustments are reviewed with the City's Finance Director prior to delivery of this report. MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 155 627 IV. Donnelly Street Post Office Box 8. Mount Dora, FL 32757 Telephone: (904) 383-6300 752 Montrose Street Post Office Box 120400. Clermont FL 34712-0400 Telephone: (904) 394 3256 Subparagraph (7)(c) refers to the agreement of the financial report filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes with the annual financial audit report. For the year ended September 30, 1992, the financial report was in agreement in all respects. The foregoing conditions were considered in determining the nature, timing, and extent of the audit tests to be applied in our examination of the City's financial statements, and this report does not affect our report on these financial statements dated December 6, 1992. This report is intended solely for the use of management and the State of Florida and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City of Clermont and the State of Florida, is a matter of public record. Clermont, Florida January 5, 1993 156