Comprehensive Annual Financial Report - 1997-1998Comprehensive
Annual Financial Report
Fiscal Year Ended
September 30, 1998
City of Clermont, Florida
The south end of Lake Minneola is the location of Clermont's Waterfront Park which
provides residents with swimming, modern restrooms, playground equipment, volleyball
courts, basketball courts and picnic pavilions. The Rail to Trail runs through the
Waterfront Park connecting with Minneola to the east and West Beach to the west. A
new fishing pier is also located at the east end of the Waterfront Park.
Cover Photo by Jeff H. Jones, Code Enforcement Officer
CITY OF CLERMONT9 FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL
REPORT SEPTEMBER 30, 1998
Prepared by.
Finance Department
Joseph E. Van Zile
Finance Director
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ii
CITY OF CLERMONT, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEIMER 30, 1998
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . 1
Organization Chart . . . . . . . . . . . . . . . . . . . . . . 13
Listing of City Officials . . . . . . . . . . . . . . . . . . . 15
Certificate of Achievement . . . . . . . . . . . . . . . . . . 17
FINANCIAL SECTION
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,
Budgeted Special Revenue and Debt Service Funds . . . . . 28
Combined Statement of Revenues, Expenses and Changes In
Retained Earnings/Fund Balances - All Proprietary
Fund Types and Nonexpendable Trust Funds . . . . . . . . . 30
Combined Statement of Changes in Plan Net Assets -
Pension Trust Fund . . . . . . . . . . . . . . . . . . . . 31
Combined Statement of Cash Flows - All Proprietary Fund
Types and Nonexpendable Trust Funds . . . . . . . . . . . 32
Notes to Financial Statements . . . . . . . . . . . . . . . 35
TABLE OF CONTENTS
FINANCIAL SECTION (CONTD.
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
General Fund:
Comparative Balance Sheet . . . . . . . . . . . . . . . . 64
Statement of Revenues, Expenditures and Changes In
Fund Balance - Budget and Actual . . . . . . . . . . . . 65
Schedule of Revenues - Budget and Actual . . . . . . . . . 66
Schedule of Expenditures - Budget and Actual . . . . . . . 67
Special Revenue Funds:
Combining Balance Sheet . . . . . . . . . . . . . . . . . 72
Combining Statement of Revenues, Expenditures and
Changes In Fund Balances . . . . . . . . . . . . . . . . 73
Statement of Revenues, Expenditures and Changes In
Fund Balance.- Budget and Actual - Infrastructure Fund 74
Sales Tax Revenue Bond Sinking Fund:
Comparative Balance Sheets . . . . . . . . . . . . . . . . 76
Statement of Revenues, Expenditures and Changes In
Fund Balance - Budget and Actual . . . . . . . . . . . . 77
Enterprise Funds:
Combining Balance Sheet . . . . . . . . . . . . . . . . . 82
Combining Statement of Revenues, Expenses and Changes In
Retained Earnings . . . . . . . . . . . . . . . . . . . 85
Combining Statement of Cash Flows . . . . . . . . . . . . 86
iv
TABLE OF CONTENTS
FINANCIAL SECTION (CONT'D.)
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS (CONT'D.)
Group Self Insurance Fund:
Comparative Balance Sheets . . . . . . . . . . . . . . . . 90
Comparative Statement of Revenues, Expenses and Changes In
Retained Earnings . . . . . . . . . . . . . . . . . . . 91
Comparative Statement of Cash Flows . . . . . . . . . . . 92
Trust Funds:
Combining Balance Sheet - Fiduciary Fund Types . . . . . . 96
Comparative Statement of Plan Net Assets -
Pension Trust Funds . . . . . . . . . . . . . . . • • • 97
Combining Statement of Changes In Plan Net Assets -
Pension Trust Funds . . . . . . . . . . . . . . . . . . 98
Comparative Balance Sheet - Nonexpendable Trust Fund -
Cemetery Perpetual Care Fund . . . . . . . . . . . . . . 99
Comparative Statement of Revenues, Expenses and Changes In
Fund Balance - Nonexpendable Trust Fund -
Cemetery Perpetual Care Fund . . . . . . . . . . . . . . 100
Statement of Cash Flows - Nonexpendable Trust Fund -
Cemetery Perpetual Care Fund . . . . . . . . . . . . . . 101
Account Groups:
Schedule of General Fixed Assets by Sources . . . . . . . 106
Schedule of General Fixed Assets by Function . . . . . . . 107
Schedule of Changes in General Fixed Assets by Function 108
Schedule of General Long -Term Debt . . . . . . . . . . . . 109
krA
TABLE OF CONTENTS
STATISTICAL SECTION
Comments On The Statistical Section . . . . . . . . . _ . . 111
General Governmental Expenditures by Function -
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . 112
General Revenue by Source - Last Ten Fiscal Years . . . . . 114
Property Tax Levies, Tax Collections and Assessed
Valuations - Last Ten Fiscal Years . . . . . . . . . . . . 116
Property Tax Rates - Direct and All Overlapping Governments -
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . 118
Water and Sewer Customer Data - Last Ten Fiscal Years . . . 121
Utility Revenue Bond Coverage - All Utility Revenue Bonds -
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . 122
Demographic Statistics - Last Ten Fiscal Years . . . . . . . 125
Property Value, Construction and Bank Deposits -
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . 126
Principal Taxpayers . . . . . . . . . . . . . . . . . . . . 128
Largest Employers . . . . . . . . . . . . . . . . . . . . . 129
Schedule of Insurance Coverages . . . . . . . . . . . . . . 130
Miscellaneous Statistical Data . . . . . . . . . . . . . . . 132
Vi
TABLE OF CONTENTS
OTHER REPORTS
Report on Compliance and on Internal Control over Financial
Reporting Based on an Audit of Financial Statements Performed
In Accordance with Government Auditing Standards . . . . . . 133
Report on Compliance with Requirements Applicable to Each Major
Program and Internal Control over Compliance in Accordance
with OMB Circular A-133 . . . . . . . . . . . . . . . . . . . 135
Schedule of Findings and Questioned Costs . . . . . . . . . . . 137
Management Letter . . . . . . . . . . . . . . . . . . . . . . . 139
LTH
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viii
INTRODUCTORY SECTION
This section contains the letter of transmittal,
organizational chart, and listing of city officials.
CITY OF CLERMONT
Office of the City Manager
March 12, 1999
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, 1998, is hereby submitted. This report was prepared by
the City's Finance Department. Responsibility for both the accuracy of the presented data
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 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 to enable 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 11.26 square miles, was incorporated in 1916. The
City is located in south Lake County, approximately twenty-two miles west of the City of
Orlando and twenty-two miles southeast of the City of Leesburg. The City is
conveniently accessible 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 Polk County, to the East by Orange County, Seminole County and Volusia
County, and to the west by Sumter County. Tavares, the County Seat, is located
approximately 190 miles southeast of Tallahassee, the State Capitol, and 50 miles
northeast of Orlando.
P.O. BOX 120219 • CLERMONT, FLORIDA 34712-0219 • PHONE: 352/394-4081
FAX: 352/394-1452
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 those for which the City Council has financial
accountability. According to criteria outlined in Governmental Accounting Standards
Board (GASB) statements, financial accountability is present if the City Council appoints
a voting majority of a component unit's governing body and has the ability to impose its
will on that organization or if there is a potential for the organization to provide specific
financial benefits to or impose specific financial burdens on the City. Based on these
criteria, the various funds and account groups shown in the table of contents are properly
included in this report.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
The City's accounting records for General, Special Revenue 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.
The concept of reasonable assurance recognizes that:
1. The cost of control should not exceed the benefits likely to be derived; and
2
2. The evaluation of costs and benefits requires estimates and judgements by
management.
All internal control evaluations occur within the above framework. The City's internal
accounting controls adequately safeguard assets and provide reasonable assurance of
proper recording of financial transactions.
Budgetary integration is established in the accounting records for control purposes at the
object level. The City Manager is authorized to approve transfers within departments, but
changes in total budget appropriations for a department must have prior approval of the
City Council. Budgetary reports are issued and reviewed monthly by staff.
FINANCIAL STATEMENT FORMAT
The report is arranged in the following sections:
Section I: Introduction Section
This section contains the Letter of Transmittal and other such
material as may be useful in understanding the reporting entity.
Section II: 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
Combining Statements by Fund Type, which presents data
for homogeneous funds.
Section III: Statistical Section
This section presents detailed historical information which will be
beneficial to the reader in understanding the City's growth and
it's future potential.
Section IV: Other Reports
This section contains other Independent Auditor's reports.
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 10.2% from $793,519 to $712,974.
Fund balance is the amount of resources available for expenditure in future years.
Revenues and other financing sources of the current fiscal year as compared with those of
the previous year are presented as follows:
...............
...:::::.......:
.:.... .
1997 1'998:::: :.
.. ,:.
9( ini /Dec:::
.....: .
,:,.....
moun
i► 0 o Iota
mount ..
c
/o of T_ otai
137.2
Aver 19%-97
....,
Taxes
$2,294,295
61.4%
$2,045,247
55.2%
12.2 %
Licenses and Permits
133,595
3.6
97,347
2.6
Intergovernmental
663,344
17.8
723,585
19.5
(8.3)
Charges for Services
42,459
1.1
46,354
1.2
(8.4)
Fines and Forfeitures
160,522
4.3
128,047
3.4
25.4
Miscellaneous
165,084
4.4
166,794
4.5
(1.0)
Transfers In
275,960
7.4
506,869
13.6
(45.6)
Total
$3,735,259
100%
$3,714,243
100%
.6%
General Fund revenues increased .6% from $3,714,243 to $3,735,259. The reason for the
slight increase in total revenues was the significant decrease in Transfers -in revenues
($231,909). The 1996-97 Transfers -in amount included an amount to fund the
construction of various major capital outlay projects. No such projects were funded with
Transfers -in during the 1997-98 fiscal year.
Excluding Transfers -in, revenues increased 7.8% from $3,207,374 to $3,459,299.
Revenues increased primarily due to increases in ad valorem taxes, franchise fees, utility
service taxes and construction permits. While tax rates remained unchanged, the revenue
increases were due to the population growth as is documented in table 8 of the statistical
section of this report. Also, as noted in Table 4 of the statistical section, the City has only
adjusted the Ad Valorem tax rate twice in the last 10 years. Clermont continues to enjoy
being one of the lowest taxed communities in Central Florida.
4
Expenditures and other financing uses of the current fiscal year as compared with those
of the previous year are as follows:
.............'....::::1.:::.:....:::::::'::.
::::::::::::::::::::::19:97-199.8................................................I.9.96...1997............................................
_:::.::.::::::::::::::::::::::::::::..:Incs/D.
u ec.....
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::.::::::.:::..:.::....
:..8
0 ....._.........._..o..
,Am..0 t._.................!_
::; ...:.....
...ot'.Tota1.........
.,
n .:..:......::.:::.:.
Amou t..............._.lo
4 :.:
Qf TQtaI::;:::::::::::::::::::::;::::a:a:::;::::::::
Over i996•
General Government
$808,901
21.2%
$636,895
15.1%
27.0%
Public Safety
1,614,460
42.4
1,299,427
30.9
24.2
Physical Environment
152,476
4.0
126,409
3.0
20.6
Transportation
472,515
12.4
906,881
21.6
(47.9)
Economic Development
11,146
.3
9,347
.2
19.2
Human Services
24,150
.6
20,974
.5
15.1
Culture & Recreation
726,444
19.1
1,205,642
28.7
(39.7)
Total
$3,810,092
100%
$4,205,575
100%
(9.4)
General Fund expenditures decreased 9.4% from $4,205,575 to $3,810,092. The primary
reason for the decrease in total expenditures was due to a less aggressive capital projects
budget in 1997-98. Major capital expenditures during the 1997-98 fiscal year, consisted
of land purchases for a future fire station ($102,000) and for a relocated boat ramp
($70,000) and the construction of McKinney Park, a multi -purpose recreational park
($107,000).
SPECIAL REVENUE FUNDS
INFRASTRUCTURE FUND
The Infrastructure Fund accounts for the City's share of the Local Government
Infrastructure Surtax. The surtax, which represents a County -wide one -cent increase in
the States Sales Tax until the end of fiscal year 2002, may only be expended on items
pertaining to the construction of fixed capital outlay.
Infrastructure Surtax Funds were used in the 1997-98 fiscal year to pay the annual debt
service on the 1989 Sales Tax Bond Issue ($250,061), and to provide partial funding for
the Osceola Street and Minneola Avenue parking projects and development of McKinney
Park.
IMPACT FEE FUND
The Impact Fee Fund accounts for the Police, Fire and Recreation Impact Fees paid by
developers. The fees were adopted by the City to require new developments to pay its
proportionate share of the capital costs necessary to accommodate new development
impacts on Police, Fire, and Recreational services.
E
Total Police, Fire and Recreation Impact Fees collected in the 1997-98 fiscal year totaled
$200,960. Police and Fire Impact Fees were used to provide partial funding for the
purchase of various equipment items. Recreation Impact Fees were held in reserve to pay
for the relocation of a boat ramp and the construction of a multi -purpose recreational park
in the 1998-99 fiscal year.
BLOCK GRANT FUND
The City received a $600,000 Community Development Block Grant from the U.S.
Department of Housing and Urban Development in the 1995-96 fiscal year. The grant is
administered through the Florida Department of Community Affairs. The grant provides
funds for low-income residents to bring their homes up to minimum property standards.
During the 1997-98 fiscal year, the City expended $405,784.
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 funding for the development of the
Palatlakaha Recreation Area and construction of the Public Services Complex and Public
Safety Building.
ENTERPRISE FUNDS
WATER FUND
The Water Fund accounts for the provision of potable water service to City and non -City
residents. Comparative data for the last three fiscal years is as follows:
,.
.
..::1997.1998
..
1996-199'
199 5
OperatingQperating Revenues
$1,362,906
$1,107,101
$901,655
Operating Expenses
1,123,451
878,643
641,208
Operating Income
$ 239,455
$ 228,458
$260,447
Net Working Capital
$ 833,503
$ 785,034
$728,684
Debt Service Coverage
Combined Water/Sewer
1.59%
1.46%
1.88%
Operating revenues and expenses increased 23.1% and 27.9% respectively from 1996-
1997 to 1997-1998, primarily due to servicing the expanding East Water System
customer base. The east water system customer base has increased from 1186 customers
in September 1997 to 1565 as of September, 1998.
SEWER FUND
The Sewer Fund accounts for the provision of sewer services to City and non -City
residents. Comparative data for the last three fiscal years is as follows:
°1997 199$... ::..:.
1996 1997..:..
1995-i99l::
OperatinB Revenues
.........._..........__...
$1094,321
._......_........
$915,382
$824,280
Operating Expenses
939,820
834,260
$789,560
Operating Income
$ 154,501
$ 81,122
$ 34,720
Net Working Capital
$ 598,185
$870,537
$700,321
Debt Service Coverage
Combined Water/Sewer
1.59%
1.46%
1.88%
Operating revenues and expenses increased 19.5% and 12.7%, respectively from 1996-97
to 1997-98 primarily due to servicing the expanding East Sewer System customer base.
The East Sewer System customer base has increased from 294 customers in September,
1997 to 539 as of September, 1998.
SANITATION FUND
The Sanitation Fund accounts for the provision of garbage and trash collection, recycling,
and composting services to City_ residents. Comparative data for the last three fiscal years
is as follows:
.
1;997 Y998
:
199;6 199?
199& .96' ° :::::::
.......... .................
.... .......
._..... .
O eratiniz Revenues
$ 660,841
$ 601,628
$ 572,830
Operating Expenses
738,998
675,807
603,322
Operating Income (Loss)
($ 78,157)
($74,179)
($30,492)
Net Working Capital
$ 217,648
$ 234,539
$ 362,338
Operating revenues and expenses in increased 9.8% and 9.4%, respectively from 1996-97
to 1997-98.
7
STORMWATER UTILITY FUND
The Stormwater Utility Fund accounts 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.
Comparative data for the last three fiscal years is as follows:
1997 1998
1996 1997
.
1995-199b ....
O eratin Revenues
$ 151,244
$ 146,590
$ 143,070
Operating Expenses
129,806
133,503
94,154
Operating Income
$ 21,438
$ 13,087
$ 48,556
Net Working Capital
$103,759
$ 228,867
$ 232,716
During the 1997-98 Fiscal year, the City expended $338,125 pertaining to the
construction of a drainage system in the downtown central business district.
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 and
insurance coverages. The modified Self -Insurance Program is responsible for health and
dental claims up to $30,000 per employee. Reinsurance provides coverage in excess of
the City's limits up to $1,000,000 per employee.
TRUST FUNDS
Trust 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
buying 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.
GENERAL FIXED ASSETS
The general 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, 1998, the general fixed assets of the City totaled $11,478,557. 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 MANAGEMENT
The City maintains an investment policy which is based on the theory of minimizing
credit and market risks, maintaining reasonable liquidity to meet maturing obligations,
and maximizing return through the use of various investment sources.
The City's investment program consists of funds invested in overnight repurchase
agreements and the Florida State Board of Administration Investment Pool. The
overnight repurchase agreements are in relation to a banking service agreement the City
maintains with a local qualified public depository. The agreement provides that a specific
rate of return based on the Bank's federal funds rate and amount of excess funds to be
credited to the City's account on a daily basis.
The Florida State Board of Administration Investment Pool is managed by the State of
Florida and is available to any governmental agency within the State. The major
advantages the pool offers to small cities such as Clermont are the higher rate of return
from the large amount of funds available to invest and the liquidity of invested funds.
Access to the invested funds is on a daily basis.
DEBT ADMINISTRATION
The City has the following long -tern debt issues outstanding on September 30,1998.
➢ A long-term note which was obtained in 1980 to finance the construction of the
Library Building.
➢ A Sales Tax Revenue Bond which was issued in 1989 to provide funding for the
development of the Palatlakaha Recreation Area and construction of the Public
Services Complex and Police Department Building.
➢ A Water and Sewer Revenue Refunding Bond Issue which was issued in 1993 to
refinance two previously issued Water and Sewer Revenue Bonds.
➢ A Water and Sewer Revenue Bond Anticipation Note was issued in 1996 to refinance
a 1995 line of credit financing as well as to provide additional funding for major East
Water and Sewer System improvements.
RISK MANAGEMENT
The City maintains Commercial Liability and Worker'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.
FINANCIAL POSITION AND FUTURE PROSPECTS
The overall financial position of the City is good, however, the pressures placed on City
services by the recent growth of the City requires careful consideration. The City's tax
base is expanding due to recent annexations and subsequent development is providing
additional revenues. Along with this additional development comes increased demands
on all City services.
The revenue stream created by growth is usually several months behind the demand for
services which placed additional pressures on all departments to continue to provide the
necessary level of service with budget constraints.
Fortunately, the City currently enjoys one of the area's lowest ad valorem millage rates
and charges for services are within acceptable ranges. This allows for necessary
adjustments in the future to meet the demands for continued and expanded services at
acceptable levels.
We must carefully monitor the economy as it relates to growth so as not to expand too
quickly while continuing to budget adequately for the continuance of services at a level
all of our residents have come to enjoy. A combination of adequate planning,
conservative budgeting, and sound management practices should help maintain the City's
financial stability.
CERTIFICATE OF ACHIEVEMENT
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
10
of Clermont, Florida, for its Comprehensive Annual Financial Report for the fiscal year
ended September 30, 1997. 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 must publish and
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 ten 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.
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 on 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,
- Z
W
ne Saunders
City Manager
Joseph an Zile
Finance Director
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12
City of Clermont
Organizational Chart
Citizens
Attorney Clermont
City Council
Police I
Dept.
City
Manager
]
Streets
Parks
Animal Control
Sanitation
Water
Sewer
Committees
Accounting
Budgeting
Payroll
Utility Billing
Risk Management
Planning
Zoning
Licensing
Permitting
Code Enforcement
13
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14
CITY OF CLERMONT, FLORIDA
LISTING OF CITY OFFICIALS
LECTED OFFICIALS
Mayor Harold S. Turville, Jr.
Mayor/Pro-Tem Jim Brown
Councilmember Hope Lamb
Councilmember Lawson Wolfe
Councilmember Jeff Biddle
PPOINTED OFFICIALS
City Manager
City Attorney
Finance Director
Public Services Director
Chief of Police
Fire Chief
City Engineer
Planning Director
Wayne Saunders
Leonard H. Baird, Jr.
Joseph E. Van Zile
Preston Davis
Randy Story
Carle Bishop
Tamara Richardson
Lanny Harker
15
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16
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, 1997
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.
NGE
OF
� UNiEDSTAiES y
W AND y
coar�`ORAMN s President
y� SEAL �.ti
aircACO
Executive Director
17
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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 CLERMONT:
KURRAS MOUNT DORA:
RICE &
BROWN, PA
CERTIFIED PUBLIC
ACCOUNTANTS
-INDEPENDENTAUDITOR'S REPORT
The Honorable Mayor and City Council
City of Clermont, Florida
Herbert John Greenlee, Jr., C.P.A.
Jerry D. Brown, C.P.A.
John S. Rice, C.P.A.
Patricia A. Sykes -Amos, C.P.A.
C. L. (Chip) Garner, C.P.A.
Dorothy A. Kurras, C.P.A.
John A. Powers, C.P.A.
Mark A. Farner, 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, 1998, as listed in the table of contents. These general purpose financial
statements are the responsibility of the City'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 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 financial 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, 1998, 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.
Our audit was performed for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The accompanying schedule of expenditures of state awards is presented
for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-
133, Audits of States, Local Governments, and Non -Profit Organizations, and is 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 stated, in all material respects, in relation to the general purpose financial
statements taken as a whole.
MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
605 Montrose Street 19 627 N. Donnelly Street
Post Office Box 120400 • Clermont, FL 34712-0400 Post Office Box 8 • Mount Dora, FL 32756
Telephone: (352) 394-3256 Telephone: (352) 383-6300
In accordance with Government Auditing Standards, we have also issued our report dated February 19,
1999, on our consideration of the City of Clermont's internal control over financial reporting and our
tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Clermont, Florida
February 2, 1999
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.
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21
CITY OF CLERMONT, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1998
GOVERNMENTAL FUND TYPES
SPECIAL
DEBT
ASSETS AND OTHER DEBITS
GENERAL
REVENUE
SERVICE
Assets:
Cash and equivalents
$79,217
$162,310
$84,039
Investments
671,368
9,836
...
Receivables:
Accounts
44,748
...
...
Other
34,704
...
...
Interfund receivables
22,094
...
...
Due from other governments
97,859
69,698
...
Prepaid items
2,555
...
...
Inventory
13,207
...
...
Restricted Assets:
Cash and equivalents
...
Investments
Interfund receivable
...
...
...
Mortgage receivables
...
395,960
...
Deferred charges
...
...
...
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
$965,752
$637,804
$84,039
continued
The notes to the financial statements are an integral part of this statement.
22
FIDUCIARY
PROPRIETARY FUND TYPES FUND TYPE
ENTERPRISE
$453,645
1,212,023
292,487
14,807
2,802
7,103
27,905
563,733
2,028,301
254,967
1,494,254
8,304,721
11,903,085
436,190
1,439,171
(5,938,766)
RVICE TRUST
$9,525 $12,023 $
107,223 4,724,129
... 37,837
ACCOUNT GROUPS
GENERAL GENERAL
rlvrr� 1 I1Kl1 TGORA
1,404,972
2,838,468
5,098,309
2,136,808
TOTALS
(MEMORANDUM ONLY)
1998 1997
$800,759
$417,841
6,724,579
7,118,342
337,235
265,440
49,511
92,685
59,931
31,900
170,359
134,978
9,658
17,316
41,112
28,270
563,733
913,370
2,028,301
1,037,333
524,856
395,960
300,565
254,967
295,554
2,899,226
2,727,561
2,838,468
2,814,432
8,304,721
8,028,372
11,903,085
11,760,160
5,534,499
5,052,364
3,575,979
3,211,899
(5 938 766)
(5 308 399)
... ... ... 61,667 61,667 58,333
... 919,812 919,812 1,102,563
$116,748 $4,773,989 $11,478,557 $981,479 $41,534,796 $40,625,735
continued
23
CITY OF CLERMONT, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1998
GOVERNMENTAL FUND TYPES
SPECIAL
DEBT
LIABILITIES, EQUITY AND OTHER CREDITS
GENERAL
REVENUE
SERVICE
Liabilities:
Accounts payable
$73,334
$10,284
$
Payroll related accruals
69,615
...
...
Contracts payable
...
10,129
...
Payable From Restricted Assets:
Contracts payable
...
...
Interfund payable
...
...
Deposits
Accrued interest
...
...
Revenue bonds
...
...
Interfund payables
25,593
22,094
...
Deferred revenue
34,704
395,960
...
Revenue bonds payable
...
Mortgage payable
...
...
...
Total Liabilities
203,246
438,467
Equity and Other Credits:
Contributed capital
...
...
...
Investment in general fixed assets
...
...
...
Retained Earnings:
Reserved
Unreserved
...
Fund Balances:
Reserved for parking lots
4,638
...
...
Reserved for police education
31,687
Reserved for inventory
13,207
Reserved for cemetery care
...
Reserved for debt service principal
...
...
61,667
Reserved for debt service interest
...
...
22,372
Reserved for employees' retirement systems
...
...
Unreserved, undesignated
712,974
199,337
Total Equity and Other Credits
762,506
199,337
84,039
TOTAL LIABILITIES, EQUITY AND OTHER CREDITS
$965,752
$637,804
$84,039
continued
The notes to the financial statements are an integral part of this statement.
24
FIDUCIARY TOTALS
PROPRIETARY FUND TYPES FUND TYPE ACCOUNT GROUPS (MEMORANDUM ONLY)
GENERAL GENERAL
11--1 A mvcn I nklr TCORA
$159,186 $32,324 $ ... $
57,470 ... ...
28,777 ... ...
86,225 ... ...
185,146
175,000
12,244
11,451,436 32,324
5,575,594 ... ...
... ... ... 11,478,5
2,145,663 ... ...
3,323,735 84,424 ...
... ... 283,833
$ ...
57
$275,128
$159,140
... ...
127,085
122,045
... ...
38,906
50,793
... ...
...
214,109
...
...
524,856
... ...
86,225
81,922
...
185,146
187,414
...
175,000
170,000
... ...
59,931
31,900
... ...
430,664
360,485
... 950,000
11,697,388
12,026,252
31,479
31,479
35,896
981,479
13,106,952
13,964,812
... ...
5,575,594
4,696,454
...
11,478,557
10,823,540
...
2,145,663
1,300,405
... ...
3,408,159
4,358,565
4,638
4,638
... ...
31,687
29,316
... ...
13,207
9,866
... ...
283,833
261,038
... ...
61,667
58,333
... ...
22,372
26,424
$22,496,428 $116,748 $4,773,989 $11,478,557 $981,479 $41,534,796 $40,625,735
25
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26
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 1998
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
Debt Service:
Principal
Interest and fiscal charges
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
Financing Sources Over Expenditures
and Other Financing Uses
Fund Balances - October 1
FUND BALANCES - SEPTEMBER 30
GOVERNMENTAL FUND TYPES
TOTAL (MEMORANDUM ONLY)
SPECIAL
DEBT
GENERAL
REVENUE
SERVICE
1998
1997
$2,294,295
$475,531
$
$2,769,826
$2,497,102
133,595
...
...
133,595
97,347
663,344
349,238
...
1,012,582
988,581
42,459
...
...
42,459
46,354
160,522
...
...
160,522
128,047
165,084
210,225
3,684
378,993
306,231
3,459,299
1,034,994
3,684
4,497,977
4,063,662
808,901
...
...
808,901
636,895
1,614,460
19,170
...
1,633,630
1,299,427
152,476
...
152,476
126,409
472,515
116,870
...
589,385
912,130
11,146
405,784
...
416,930
247,422
24,150
...
...
24,150
20,974
726,444
17,420
...
743,864
1,205,642
...
...
175,000
175,000
160,000
79,462
79,462
90,243
3,810,092
559,244
254,462
4,623,798
4,699,142
(350,793)
475,750
(250,778)
(125,821)
(635,480)
275,960
...
250,060
526,020
753,146
(408,277)
(408,277)
(659,311)
275,960
(408,277)
250,060
117,743
93,835
(74,833)
67,473
(718)
(8,078)
(541,645)
837,339
131,864
84,757
1,053,960
1,595,605
$762,506
$199,337
$84,039
$1,045,882
$1,053,960
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, BUDGETED SPECIAL REVENUE, AND DEBT SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Debt service
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Financing Uses
Fund Balances - October 1
FUND BALANCES - SEPTEMBER 30
GENERALFUND
VARIANCE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
$2,122,600
$2,294,295
$171,695
91,700
133,595
41,895
799,400
617,604
(181,796)
233,094
229,153
(3,941)
183,500
160,522
(22,978)
184,540
210,824
26,284
3,614,834
3,645,993
31,159
847,878
991,861
(143,983)
1,550,248
1,614,460
(64,212)
154,779
156,210
(1,431)
489,079
472,515
16,564
10,815
11,146
(331)
21,625
24,150
(2,525)
1,125,494
726,444
399,050
4,199,918
3,996,786
203,132
(585,084)
(350,793)
234,291
366,816
275,960
(90,856)
366,816
275,960
(90,856)
(218,268)
(74,833)
143,435
837,339
837,339
$619,071
$762,506
$143,435
continued
The notes to the financial statements are an integral part of this statement.
28
SPECIAL REVENUE FUND
DEBT SERVICE FUND
VARIANCE
VARIANCE
FAVORABLE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
BUDGET
ACTUAL
(UNFAVORABLE)
$469,000
$475,531
$6,531
$
$
$
500
3,279
2,779
5,000
3,684
(1,316)
469,500
478,810
9,310
5,000
3,684
(1,316)
30,000
19,170
10,830
...
• • •
• • •
121,400
116,870
4,530
..•
•••
•••
18,000
17,420
580
•..
• • •
•_.
...
...
254,882
254,462
420.
169,400
153,460
15,940
254,882
254,462
420
300,100
325,350
25,250
(249,882)
(250,778)
(896)
.•.
...
249,882
250,060
178
(299,882)
(300,061)
(179)
•.•
•••
•••
(299,882)
(300,061)
(179)
249,882
250,060
178
218
25,289
25,071
...
(718)
(718)
37,183
37,183
84,757
84,757
$37,401
$62,472
$25,071
$84,757
$84,039
($718)
29
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS/FUND BALANCES
ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
Operating Revenues:
Charges for services
Sale - cemetery lots
Sale of recycled materials
Reimbursements
Total Operating Revenues
Operating Expenses:
Personal services
Utilities
Dumping fees
Administrative services
Repair and maintenance
Depreciation
Professional services
Insurance
Operating supplies
Office expense
Bad debt
Trustee/administrative fees
Medical claims
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
Interest expense
Grants
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Operating Transfers
Other Financing Sources (Uses):
Operating transfers out
Total Other Financing Sources
Net Income (Loss)
Retained Earnings/Fund Balances - October 1
RETAINED EARNINGS/FUND BALANCES - SEPTEMBER 30
FIDUCIARY TOTALS
PROPRIETARY FUND TYPES FUND TYPE (MEMORANDUMS ONL'
NON -
INTERNAL EXPENDABLE
$3,198,692
$331,166
$ ...
$3,529,858
$2,973,704
...
...
22,795
22,795
15,200
7,304
...
...
7,304
3,719
63,316
2,978
66,294
102,789
3,269,312
334,144
22,795
3,626,251
3,095,412
920,045
...
...
920,045
814,684
270,090
...
...
270,090
250,936
294,843
...
...
294,843
249,790
186,694
...
...
186,694
182,145
280,474
...
...
280,474
142,418
630,083
...
...
630,083
541,169
164,254
...
...
164,254
139,202
48,824
...
...
48,824
104,074
99,485
...
...
99,485
101,718
31,358
...
...
31,358
33,711
5,925
...
...
5,925
5,547
...
62,184
...
62,184
17,671
286,767
286,767
181,405
2,932,075
348,951
3,281,026
2,764,470
337,237
(14,807)
22,795
345,225
330,942
203,272
6,400
...
209,672
290,821
(619,460)
...
(619,460)
(639,981)
99,953
99,953
103,827
(316,235)
6,400
(309,835)
(245,333)
21,002
(8,407)
22,795
35,390
85,609
(117,743)
(117,743)
(93,835)
(117,743)
(117,743)
(93,835)
(96,741)
(8,407)
22,795
(82,353)
(8,226)
5,566,139
92,831
261,038
5,920,008
5,928,234
$5,469,398
$84,424
$283,833
$5,837,655
$5,920,008
The notes to the financial statements are an integral part of this statement.
30
CITY OF CLERMONT, FLORIDA
PENSION TRUST FUND
COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1998 AND 1997
(MEMORANDUM
ONLY)
1998
1997
Additions
Contributions:
Employer
$147,449
$107,992
Plan members
6,773
5,973
State
116,246
77,540
Total contributions
270,468
191,505
Investment Income:
Net investment income including
appreciation in fair value
288,967
806,767
Less: Investment expense
46,564
44,744
Net investment income
242,403
762,023
Total additions
512,871
953,528
Deductions
Benefits
189,676
147,040
Total deductions
189,676
147,040
Net increase
323,195
806,488
Net assets held in trust for pension benefits
Beginning of year
4,166,961
3,360,473
End of Year
$4,490,156
$4,166,961
The notes to the financial statements are an integral part of this statement.
31
CITY OF CLERMONT, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
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 (Used) By Operating Activities
Cash Flows From NonCapital Financing Activities:
Operating transfers out
Grants
Interest to be transferred
Net Cash Provided (Used) By NonCapital Financing Activities
Cash Flows From Capital and Related Financing Activities:
Acquisition and construction of capital assets
Principal paid
Interest paid
Contributed capital
Net Cash Provided (Used) By Capital
and Related Financing Activities
Cash Flows From Investing Activities:
Interest
Investment sales
Investment purchases
Net Cash Provided (Used) By Investing Activities
Net Increase (Decrease) In Cash and Equivalents
Cash At Beginning Of Year
Cash At End Of Year
The notes to the financial statements are an integral part of this statement.
FIDUCIARY TOTALS
PROPRIETARY FUND TYPES FUND TYPE MEMORANDUM ONLY)
INTERNAL NONEXPENDABLE
ENTERPRISE SERVICE TRUST 1998 1997
$3,214,484
$334,144
$22,795
$3,571,423
$3,113,258
(1,291,369)
(62,184)
...
(1,353,553)
(1,285,654)
(920,752)
...
...
(920,752)
(788,841)
(264,010)
(264,0101
(183,747)
1,002,363
7,950
22,795
1,033,108
855,016
(117,743)
...
...
(117,743)
(93,835)
97,151
...
...
97,151
103,827
4,204
4,204
(4,204)
i20,592;
4,204
(16,3881
5,788
(1,042,298)
...
...
(1,042,298)
(3,519,244)
(170,000)
...
...
(170,000)
(530,662)
(560,006)
...
...
(560,006)
(608,395)
879,425
879,425
946,148
(892,879)
(892,879)
(3,712,153)
203,272
6,400
...
209,672
290,821
344,837
...
...
344,837
3,155,463
(613,085)
(68,517)
(22,850)
(704,452)
(11,848)
(64,976)
(62,117)
(22,850)
(149,943)
3,434,436
23,916
(54,167)
4,149
(26,102)
583,087
993,462
63,692
7,874
1,065,028
481,941
$1,017,378
$9,525
$12,023
$1,038,926
$1,065,028
(continued)
32
FIDUCIARY TOTALS
PROPRIETARY FUND TYPES FUND TYPE (MEMORANDUM ONLY)
INTERNAL NONEXPENDABLE
ENTERPRISE SERVICE TRUST 1998 1997
Reconcilation of Operating Income to Net Cash Provided
(Used) by Operating Activieits:
Operating Income (Loss) $337,237 ($14,807)
Ajustments to Reconcile Operating Income to Net Cash Provided
(Used) by Operating Activities:
Depreciation
630,083 ...
Change in Assets and Liabilities:
Decrease (Increase) in receivables
(59,131) ...
Decrease (Increase) in prepaids
2,518 ...
Decrease (Increase) in inventory
(9,501) ...
Increase (Decrease) in accrued expenses
(7,687) ...
Increase (Decrease) in payables
108,844 22,757
Total Adjustments
665,126 22,757
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
$1,002,363 $7,950
$22,795 $345,225
$330,942
... 630,083
541,169
... (59,131)
11,267
... 2,518
1,112
... (9,501)
7,701
... (7,687)
25,792
131,601
(62,967)
687,883
524,074
$22,795 $1,033,108
$855,016
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 government 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 - These financial statements include all the City's funds and account
groups. There are no component units, separate governmental units, agencies or
nonprofit corporations which require inclusion in the City's 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 Funds - 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.
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
35
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
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 -
1. Trust Funds - To account for assets held by the City in a trustee capacity.
Pension trust funds are accounted for in essentially the same manner as
Proprietary Funds, since capital maintenance is critical.
Account Groups -
1. 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.
2. 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 statements 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 or statement of plan net assets. 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 City has chosen not
to use FASB pronouncements issued after November 30, 1989, for its proprietary
activities.
The modified accrual basis of accounting is used by all governmental fund types.
Under the modified accrual basis of accounting, revenues are recognized when
36
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
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
Rinds 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.
D. Budgets
The City follows these procedures in establishing the budgetary data reflected 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 2. 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: legislative ($743), finance ($9,505), planning and zoning ($129,718),
37
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
other general services ($7,482), law enforcement ($49,732), fire control ($14,480),
physical environment ($1,431), economic development ($331), animal control
($2,525) and library ($185).
Budgets are prepared on a basis consistent with generally accepted accounting
principles (GAAP) for the infrastructure fund and the nonexpendable 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
funds. Budget amounts for the general, infra -structure, and debt service 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 investments with a
maturity date within three months of the date acquired by the government.
Governmental fund investments are generally stated at cost or amortized cost.
Proprietary fund investments are stated at lower of cost or market. Pension funds
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 - All the Utility Funds maintain the direct write-off method of bad
debt recognition due to the immateriality of the amounts. The City has no
concentrations of credit risk.
38
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
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 exists. 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 capitalized. 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.
Proprietary Type Funds
Buildings
Land Improvements
Equipment
Useful
Lives (years)
25 - 40
5 - 40
3-35
Interest is capitalized on proprietary fund assets acquired with tax-exempt debt.
The amount of interest to be capitalized is calculated by offsetting interest
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
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.
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. Risk Management - The City is exposed to various risks of loss related to torts,
theft of, damage to and destruction of assets; errors and omissions; natural
disasters; and job -related illnesses or injuries to employees. Significant losses
are covered through participation in a local government non -assessable self
insurance pool. For these insured programs, there have been no significant
reductions in insurance programs, there have been no significant reductions in
insurance coverage. Settlement amounts have not exceeded insurance coverage
for the current year or the three prior years.
The City provides coverage for the first $30,000 per year in medical, dental, or
prescription claims for each covered employee. The City purchases commercial
insurance for claims in excess of coverage provided by the City with a total
aggregate stop -loss of $1,000,000.
10. 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.
40
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
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
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%
Utility tax (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
41
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
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.
2. Stewardship, Compliance and Accountability:
A. Budget Revisions
The following schedule summarizes budget revisions by Fund:
Original
Budget Revisions
General Fund $3,743,555 $ 461,363
Infrastructure 419,282 50,000
B. General Fund Budget/GAAP Reconciliation:
Deficiency of revenues and other sources
over expenditures and other uses (budgetary basis)
Adjustments:
To reduce revenues for administrative service fees
To reduce expenditures for administrative service fees
Deficiency of revenues and other sources over expenditures
and other uses (GAAP basis)
C. Special Revenue Funds Budget/GAAP Reconciliation:
Excess of revenues and other financing sources over
expenditures and other financing uses (budgetary basis)
Adjustments:
To record excess of revenues and other financing
sources over expenditures and other financing uses for
unbudgeted Impact Fee and Block Grant Funds
Excess of revenues and other financing sources over
expenditures and other financing uses (GAAP basis)
Final
Budget
$4,204,918
469,282
$ (74,833)
(186,694)
186.694
L-CZ4,833
$ 25,289
42,184
67 473
42
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
D. 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:
Water Sewer Sanitation Stormwater
Fund Fund Fund Fund
Actual Expenses (GAAP Basis) $1,368,892 $ 1,313,840 $ 738,998 $ 129,806
Less:
Depreciation (248,886) (300,105) ... (9,868)
Add:
Capital additions
288,098 153,557 23,134 341,384
Principal payments 49,300 120,700
Actual (Budget Basis) 1,457,404 1,287,992
Budget 1,359,497 1.400276
Variance -favorable (unfavorable) (97,907) � 112.284
3. Deposits and Investments:
DEPOSITS
762,132 461,322
709.536 647,314
52 596 185 992
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 deposits with qualified public
depositories. Therefore, all City deposits are entirely insured by FDIC or Florida's Multiple
Financial Institution Collateral Pool.
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.
43
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
Category 3 includes uninsured and unregistered investments held by a counterparty but not
in the City's name.
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 Agreement $ 896,000 $ 896,000
(Securities held by bank in bank's name)
Investment in local government surplus funds trust 4,300,561 4,300,561
Florida Municipal Pension Trust Fund 4A52.319 4A52=319
Total 9,648,880 $ 9.648.880
The Local Government Surplus Funds Trust Fund is governed by Ch. 19-7 of the Florida
Administrative Code, which identifies the Rules of the State Board of Administration. These
rules provide guidance and establish the general operating procedures for the administration
of the Local Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor
General performs the operational audit of the activities and investments of the State Board
of Administration.
The Local Government Surplus Funds Trust Fund is not a registrant with the Securities and
Exchange Commission (SEC): however, the Board has adopted operating procedures
consistent with the requirements for a 2a-7 fund. Therefore the pool account balance
(amortized cost) can be used as fair value for financial reporting.
4. Community Development Block Grant Fund Mortgages Receivable:
The City rehabilitated houses using Community Development Block Grant funds. A
mortgage for the amount of rehabilitation costs was recorded for each house. Twenty percent
of the mortgage is forgiven each year the homeowner continues to live in the home and
properly maintains it. In each of the next five years the amount of mortgage receivable will
be reduced along with a corresponding amount of deferred revenue. During the year ended
September 30, 1998, $102,482 of the original mortgage amounts was forgiven.
44
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
5. Changes In General Fixed Assets:
A summary of changes in general fixed assets is as follows:
Balance -
9/30/97 Additions
Land $ 1,233,307 $ 171,665
Buildings 2,814,432 24,036
Improvements other
than buildings 4,948,446 149,863
Machinery and equipment 1,82 7.355 309,453
Totals $10,823.540 $ 655,017
6. Changes in Proprietary Fund Fixed Assets:
Land
Water system
Sewer system
Improvements other
than buildings
Equipment
Total Assets
Less: Accumulated
depreciation
Net
7. Pension Funds:
Balance -
9/30/97 Additions
$ 1,494,254 $
8,028,372 276,349
11,760,160 142,925
103,918 332,272
1384.544 54.627
22,771,248 806,173
5,308399 630.367
$17,462.849 $ 175.806
Balance -
Deletions 9/30/98
$ ... $ 1,404,972
... 2,838,468
... 5,098,309
�:.. 2 1�$08
11 478 557
Balance -
Deletions 9/30/98
$ $ 1,494,254
8,304,721
... 11,903,085
... 436,190
1,439.171
... 23,577,421
5.938,766
$17,638,655
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. Costs of administering the plan are paid from investment
income.
45
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
DEFINED BENEFIT PENSION PLANS
Membership in each of the defined benefit pension plans at September 30, 1998, was as
follows:
General Police Volunteer
Employees Officers Firefighters
Retirees/beneficiaries
currently receiving benefits 15 3 2
Vested terminated employees 0 0 1
Active employees:
Fully vested 1 1 4
Nonvested 0 18 14
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.
GENERAL
VESTING EMPLOYEES POLICE OFFICERS
Full Age 65; 10 years service Age 55; 10 years
service
vesting as 10/1/90,
age 60
Partial Age 60; 10 years service Age 50; 10 years
service
VOLUNTEER
FIREFIGHTERS
Age 55; 10 years service
Age 50; 10 years service
.o
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
GENERAL
VESTING EMPLOYEES
Monthly 2% of highest 5 year
Benefits average salary times
years of creditable
service
POLICE OFFICERS
2.25% of average
monthly earnings
times years of
creditable service
VOLUNTEER
FIREFIGHTERS
$5.00 per month times
years of creditable
service
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 retirement 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 POLICY
GENERAL
POLICE
VOLUNTEER
EMPLOYEES
OFFICERS
FIREFIGHTERS
Contribution rates:
City
44.8%
11.5%
24.4%
Plan members
0%
1 %
1 %
Annual pension cost
$ 13,500
$ 68,311
$ 9,395
Contributions made
23,048
104,028
45,123
Actuarial valuation date
10/01 /97
10/01 /97
10/01 /97
47
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
Actuarial cost method
Amortization method
Remaining
amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return*
Projected salary increases
*Includes inflation at
Cost of living adjustments
General Employees
Police Officers
Volunteer Firefighters
GENERAL POLICE
EMPLOYEES OFFICERS
Aggregate cost Aggregate cost
N/A N/A
N/A N/A
5 year
smoothed
market
8.0%
6.0%
4.0%
5 year
smoothed
market
7.5%
5.5%
3.5%
N/A N/A
VOLUNTEER
FIREFIGHTERS
Aggregate cost
N/A
N/A
5 year
smoothed
market
Three Year Trend Information
Annual
Percentage
Year
Pension
of APC
Ending
Cost (APQ
Contributed
9/30/98
$ 13,500
170
9/30/97
13,500
100
9/30/96
20,738
100
9/30/98
$ 68,311
161
9/30/97
78,058
105
9/30/96
73,945
100
9/30/98
$ 9,395
485
9/30/97
8,444
259
9/30/96
7,774
236
7.5%
5.5%
3.5%
4.0%
W7n
Net
Pension
Obligation
0
0
0
1
1
1
48
CITY OF CLERMONT
NOTES TO THE FINANCIAL STATEMENTS
PENSION FUNDING PROGRESS
ACTUARIAL
UAAL AS A
ACTUARIAL
ACTUARIAL
ACCRUED
PERCENTAGE
VALUATION
VALUE OF
LIABILITY
UNFUNDED
FUNDED
COVERED
COVERED
DATE
ASSETS
(AAL)
AAL (UAAL)
RATIO
PAYROLL
PAYROLL
General Employees
10/1/91
$747,713
$734,907
($12,806)
101.74%
$108,230
-11.83%
10/1/92
761,366
750,416
(10,950)
101.46%
117,941
-9.28%
10/1 /93
671,313
787,967
116,654
85.20%
62,972
-185.25%
10/1 /94
780,813
758,398
(22,415)
102.96%
35,013
64.02%
10/1/95
818,857
872,512
53,655
93.85%
26,772
200.41%
10/1/96
872,643
836,232
(36,411)
104.35%
28,610
-127.27%
10/1/97
990,824
834,525
(156,299)
118.73%
28,410
-550.15%
Police Officers
10/1 /91
$778,984
$725,418
($53,566)
107.38%
$439,908
-12.18%
10/1/92
942,678
879,988
(62,690)
107.12%
429,772
-14.59%
10/1/93
963,332
962,066
(1,266)
100.13%
459,607
-.28%
10/1/94
1,210,374
966,568
(243,806)
125.22%
487,557
50.01%
10/1/95
1,408,309
1,107,486
(300,823)
127.16%
521,150
-57.72%
10/1/96
1,745,605
1,159,020
(586,585)
150.61%
543,193
-107.99%
10/1 /97
1,745,429
1,248,448
(496,981)
139.81 %
564,388
-88.06%
Volunteer Firefighters
10/1 /91
$221,249
$24,882
($196,367)
889.19%
$18,076
-1086.34%
10/1/92
253,712
15,747
(237,965)
1611.18%
19,049
-1249.23%
10/1 /93
261,364
15,280
(246,084)
1652.11 %
28,754
-853.95%
10/1 /94
326,086
16,063
(310,023)
2030.04%
28,612
-1083.54%
10/1/95
380,450
42,516
(337,934)
894.84%
30,928
-1092.65%
10/1/96
486,899
44,320
(442,579)
1098.60%
47,259
-936,50%
10/1 /97
486,844
39,214
(447,630)
1241.51 %
37,394
-1197.06%
49
CITY OF CLERMONT
NOTES TO THE FINANCIAL STATEMENTS
PENSION CONTRIBUTIONS FROM CITY/STATE
ANNUAL
CITY
STATE
FISCAL
REQUIRED
CONTRIBUTION
CONTRIBUTION
YEAR
CONTRIBUTION
PERCENTAGE
PERCENTAGE
General Employees
1991-92
$11,556
100.0%
0.0%
1992-93
5,543
147.6%
0.0%
1993-94
13,348
100.0%
0.0%
1994-95
17,120
100.0%
0.0%
1995-96
20,738
100.0%
0.0%
1996-97
13,500
100.0%
0.0%
1997-98
13,500
170.7%
0.0%
Police Officers
1991-92
$72,415
134.4%
49.0%
1992-93
65,540
40.4%
57.4%
1993-94
72,517
39.4%
54.6%
1994-95
74,514
33.9%
64.3%
1995-96
73,945
32.6%
68.9%
1996-97
78,058
26.7%
71.8%
1997-98
68,311
48.2%
104.1 %
Volunteer Firefighters
1991-92
($526)
0.0%
-2010.3%
1992-93
180
0.0%
5627.2%
1993-94
184
0.0%
9122.8%
1994-95
6,273
0.0%
235.6%
1995-96
7,774
0.0%
232.6%
1996-97
8,444
0.0%
254.6%
1997-98
9,395
0.0%
480.3%
50
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
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 SERV E
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%
Membership in the defined contribution pension plan at September 30,1998, was as follows:
General Employees
Retirees and beneficiaries
currently receiving benefits 0
Vested terminated employees 0
Active employees:
Fully vested 15
Partially vested 13
Nonvested 48
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 fiscal year 1998 was $1,581,182; the City's total payroll
was $2,450,106.
51
8
W
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
The City contributes annually to the pension account of each active participant an amount
equal to eight percent (8%) of the employee's annual compensation. No contribution is
required of employees.
The required contribution by the City for fiscal year 1998 was $110,683, or eight percent
(8%) of covered payroll, less forfeitures of $15,409. Actual contribution was $110,509.
Post -retirement Benefits:
Retired employees have the option of continuing the same type of health and dental
insurance coverages available to them while they were employed with the City. The cost of
the premiums is paid totally by the retirees.
Risk Management
During fiscal year 1990, the City established an internal service fund to account for its
uninsured risk of loss for employee medical and dental coverage. Under this program, the
fund provides coverage for the first $30,000 per year in medical, dental, or prescription
claims for each covered employee. The City purchases commercial insurance for claims in
excess of coverage provided by the fund with a total aggregate stop -loss of $1,000,000.
There has been no reduction in insurance coverage from that carried in the prior year.
Claims paid have not exceeded insurance coverage in any of the past three fiscal years.
The general, water, sewer, sanitation and stormwater funds participate in the program and
make payments to the internal service fund based on the number of employees budgeted in
each fund.
1998
Claims liabilities,
beginning of year $ 9,567
Incurred claims 286,767
Payments on claims 2_(_ 64,010)
Claims liabilities, end of year $ 32.324
1997
$ 11,909
181,405
1996
$ 50,629
200,735
t 181747) (239.455)
9,567 11,909
Unpaid claims are based on reported claims up to sixty days after year end and personal
knowledge of any employees' major health crisis.
52
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
10. General Long -Term Debt:
The following is a summary of changes in notes payable and bonds outstanding for the year
ended September 30, 1998:
Note
Bonds
Payable
Total
Bonds and note payable
at October 1, 1997
$1,125,000
$ 35,896
$1,160,896
Retirements
i 175,000)
(4.417)
+ 179.417)
Bonds and Note Payable
At September 30, 1998
950,000
31 479
$ 981,479
Bonds and notes payable at September 30, 1998, are comprised of the following individual
issues:
Note payable to Nations 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. $ 31,479
$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
950,000
7.05%
Total General Long Term Debtl
The annual requirements to amortize all general long-term debt outstanding as of September
30, 1998, including interest payments of $199,888, are as follows:
YEAR ENDING
NOTE
SEPTEMBER 30
BONDS
P YABL
TOT
1999
$ 250,983
$ 6,147
$ 257,130
2000
253,310
5,904
259,214
2001
249,510
5,661
255,171
2002
249,915
5,418
255,333
2003
139,165
5,175
144,340
2004 - 2005
10,179
10.179
" 11� $ 38A84 1181367
53
11
12.
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
Advance Refunding:
On July 1, 1993, the City received a $3,905,000 loan from the City of Arcadia Dedicated
Pool Local Government Revenue Bonds, Series 1993, with an interest rate of 5.48 percent
to advance refund $1,055,000 of outstanding 1972 Series bonds with an interest rate of 6
percent and $2,080,000 of 1988 refunding bonds with interest rates ranging from 5.25 to 8
percent. The net proceeds of $3,480,987 (after payment of $424,013 in underwriting fees,
insurance, issuance costs, and reserve allocation) were disbursed through an escrow deposit
agreement and invested in defeasance obligations which will produce sufficient maturing
principal and interest to timely pay the principal and interest of the outstanding obligations.
As a result, both the 1972 and 1988 issues are considered to be defeased and the liability for
these bonds has been removed from the City's financial statements. At September 30, 1998,
$2,480,000 of bonds outstanding are considered defeased.
Enterprise Fund Long -Term Debt:
The following is a summary of changes in issues outstanding for the year ended September
30, 1998:
1993 Issue
Bonds and notes payable - October 1, 1997 $11,305,000
Retirements 1 (170.000)
Bonds and notes payable - September 30, 1998 $11,135 000
The debt is comprised of the following items:
$3,905,000 1993 refunding bond issue due serially in annual
installments of $125,000 to $515,000 starting December 1, 1993,
through December 1, 2015; interest of 5.48% is paid semiannually.
The net revenues of the water and sewer funds are pledged to secure
the repayment of the debt. $ 3,145,000
$7,990,000 water and sewer revenue and refunding bond anticipation
notes bearing interest of 5%. Interest only payments due semi-
annually with a balloon principal payment due December, 2000.
_ 7.990,000
$11.135.000
54
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
The annual requirements to amortize the debt outstanding as of September 30, 1998,
including interest payments of $2,511,620, are as follows:
YEAR ENDING
SEPTEMBER 3
TOTAL
1999
$ 726,858
2000
724,400
2001
8,426,600
2002
323,282
2003
324,077
2004 - 2008
1,082,665
2009 - 2013
1,076,981
2014 - 2015
961.757
$ 13,646.620
13. Interfund Receivables and Payables:
Individual fund interfund receivable and payable balances at September 30, 1998, are as
follows:
Interfund Interfund
Receivables Payables
General Fund
$ 22,094
$ 25,593
Community Development Block Grant
22,094
Sewer Fund
...
4,480
Water Fund
2,986
Sanitation Fund
3,882
Stormwater Fund
896
Police Pension Trust Fund
7,972
...
General Employee
Defined Contribution Pension Fund
29,865
Totals
$ 59,931
S 59,931
55
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
14. Reserved Fund Balances and Retained Earnings:
Fund Balance - Reserves have been established for the following items:
Reserved for Parking Lots - Funds collected specifically for off
street parking.
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 Debt Service - Funds restricted for payment of
general long term debt principal.
Reserved for Debt Service - Funds restricted for payment of
interest on general long term debt.
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
$ 4,638
31,687
13,207
61,667
22,372
283,833
4,490,156
$4,907,560
Retained Earnings - Reserves have been established in accordance with both the covenants
of the City's bond indentures for the following items in the Enterprises Funds:
Reserved for Debt Service - Funds restricted for future servicing
of the revenue bonds
Reserved for Expansion - Utility Benefit Fees and loan proceeds
restricted for utility expansion.
Total Reserved Retained Earnings
$ 360,146
1,785,517
$2,145,663
ut
15.
16.
17.
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
Changes in Contributed Capital:
Balance October 1, 1997
Contributions from developers
Depreciation
Balance September 30, 1998
Segment Information:
$ 4,696,454
879,425
1285)
$ 5.575.594
The City maintains four Enterprise Funds which provide water, sewer, sanitation, and
stormwater services. Segment information for the year ended September 30, 1998, is as
follows:
Operating Revenues
Depreciation
Operating Income (Loss)
Operating Grants
Operating transfer out
Operating transfer in
Net Income (Loss)
Current Capital - Contributions
Plant, Property and Equipment:
Additions
Net Working Capital
Total Assets
Bonds and Other Long -Term
Liabilities:
Payable From Operating Revenues
Total Equity
Contingencies:
FUNDS
Water
Sewer
Sanitation
Stormwater
Totals
$ 1,362,906
$ 1,094,321
$ 660,841
$ 151,244
$ 3,269,312
248,886
300,105
71,224
9,868
630,083
239,455
154,501
(78,157)
21,438
337,237
97,151
...
2,802
...
99,953
(117,743)
...
...
...
(117,743)
48,182
(109,518)
(64,981)
29,576
(96,741)
254,395
488,198
...
136,832
879,425
288,098
153,557
23,134
341,384
806,173
833,503
598,185
217,648
103,759
1,753,095
8,309,161
12,949,856
549,347
688,064
22,496,428
4,659,639 6,475,361 ... ... 11,135,000
3,439,920 6,496,151 505,333 603,588 11,044,992
The City is not aware of any pending or threatened litigation which would not be covered by
insurance.
57
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
18. Awards:
The City received several federal, state and local grants.
Program Total
Grantor/ Program Assistance Disbursements/
Program Title I.D. Number Received Expenditures
U.S. Department of Justice:
Community Oriented Policing
Services Grant 95-CF-WX-3511 $ 14,533 $ 14,533
Local Law Enforcement
Block Grant 97-LB-VX-3529 $ 10,874 $ 10,874
Florida Department of Community
Affairs:
Community Development
Block Grant 96-DB-1E-06-45-02-H10 $ 270,530 $ 325,499
Lake County:
Recycling and Education Grant
RE98-33 $
2,802
$
2,802
Youth Recreation Grant
N/A $
17,800
$
17,800
SHIP
N/A $
80,285
$
80,285
South Lake Foundation:
McKinney Park Grant
N/A $
45,740
$
45,740
19. Year 2000:
The Year 2000 issue results from a computer's inability to process year -date data accurately
beyond the year 1999.
Assessment stage - The City identified its systems and individual components of the systems
that are computer dependent. These systems were reviewed for year 2000 compliance.
Those vendors supplying computer sensitive equipment to the utility functions were
contacted for verification of year 2000 compliance. Those organizations providing
maintenance to computer dependent functions were also contacted for verification of year
2000 compliance.
58
CITY OF CLERMONT, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
Remediation stage - The results of this review revealed that the City needed to replace
several computers and its accounting and utility billing software. The City obtained written
assurances from utility function vendors of year 2000 compliance. The City also received
assurances from the traffic signal maintenance provider that this function was year 2000
compliant. The City prepared the RFP for those items that were determined not to be Year
2000 compliant. It has selected the vendor for replacing these systems. The City expended
$0 during the year ended September 30, 1998. The City expects to expend $170,000 during
the 98/99 fiscal year on Y2k compliance. As of the report date, the new hardware has been
installed and the software conversion is in process.
Testing and implementation stages - The accounting system testing is scheduled to be
completed in March, 1999. The utility billing system is scheduled to be fully operational in
July, 1999. The new payroll system is scheduled to be fully operational by September, 1999.
59
CITY OF CLERMONT, FLORIDA
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
AGENCY PROGRAM TITLE STATE NUMBER
Department of Community Affairs:
Community Development Block Grant 96-DB-1E-06-45-02-H10
FEDERAL
THROUGH
STATE
RECEIPTS EXPENDITURES
$270,530 $325,499
Note: This schedule of expenditures of state awards includes the state grant activity of the City of
Clermont, Florida and is presented on the modified accrual basis of accounting. The information
in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits
of States, Local Governments and Non -Profit Organizations.
COMBINING AND INDIVIDUAL FUND
k
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.
GOVERNMENTAL FUND TYPES
61
THIS PAGE INTENTIONALLY LEFT BLANK
M.
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.
63
CITY OF CLERMONT, FLORIDA
GENERALFUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1998 AND 1997
TOTALS
ASSETS 1998 1997
Cash and equivalents
$79,217
$77,292
Investments
671,368
760,872
Receivables:
Accounts
44,748
45,838
Assessments
34,704
59,920
Interfund receivables
22,094
...
Due from other governments
97,859
97,791
Prepaid expenditures
2,555
7,695
Inventory
13,207
9,866
TOTAL ASSETS
$965,752
$1,059,274
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
$73,334
$34,428
Contracts payable
...
50,793
Payroll related accruals
69,615
60,024
Interfund payables
25,593
16,770
Deferred revenue
34,704
59,920
Total Liabilities
203,246
221,935
Fund Balance:
Reserved for parking lots
4,638
4,638
Reserved for police education
31,687
29,316
Reserved for inventory
13,207
9,866
Unreserved, undesignated
712,974
793,519
Total Fund Balance
762,506
837,339
TOTAL LIABILITIES AND FUND BALANCE
$965,752
$1,059,274
KT
CITY OF CLERMONT, FLORIDA
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1997
1998
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Operating transfers in
Excess (Deficiency) of Revenues over Expenditures
and Other Sources (Uses)
Fund Balance - October 1
FUND BALANCE - SEPTEMBER 30
VARIANCE
FAVORABLE
1997
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
$2,122,600
$2,294,295
$171,695
$2,045,247
91,700
133,595
41,895
97,347
799,400
617,604
(181,796)
723,585
233,094
229,153
(3,941)
228,491
183,500
160,522
(22,978)
128,047
184,540
210,824
26,284
166,794
3,614,834 3,645,993 31,159 3,389,511
847,878
991,861
(143,983)
815,389
1,550,248
1,614,460
(64,212)
1,299,427
154,779
156,210
(1,431)
130,052
489,079
472,515
16,564
906,881
10,815
11,146
(331)
9,347
21,625
24,150
(2,525)
20,974
1,125,494
726,444
399,050
1,205,642
4,199,918
3,996,786
203,132
4,387,712
(585,084)
(350,793)
234,291
(998,201)
366,816
275,960
(90,856)
506,869
(218,268) (74,833) 143,435 (491,332)
837,339 837,339 .. 1,328,671
$619,071 $762,506 $143,435 $837,339
65
CITY OF CLERMONT, FLORIDA
GENERALFUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1997
1998
Revenues:
Taxes:
Ad valorem
Local option gas tax
Franchise fees
Utility taxes
Total Taxes
Licenses and Permits:
Professional and occupational
Other permits
Total Licenses and Permits
Intergovernmental Revenues:
Two -cent cigarette tax
State revenue sharing
Mobile home licenses
Alcoholic beverage licenses
Half -cent sales tax
Motor fuel tax rebate
Municipality share of county occupational licenses
Municipality share of one -cent voted gas tax
Grants
Total Intergovernmental Revenues
Charges For Services:
Public safety
Program activity fees
Administrative service fee
Total Charges For Services
Fines and Forfeitures:
Court fines
Police education
False alarms
Confiscations
Automation
Total Fines and Forfeitures
Miscellaneous Revenues:
Interest
Rentals
Memorial sales
Surplus equipment
Contributions
Reimbursements
Other miscellaneous
Total Miscellaneous Revenues
TOTAL REVENUES
VARIANCE
FAVORABLE
1997
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
$712,200
$709,953
($2,247)
$617,429
170,100
171,694
1,594
173,153
459,900
527,643
67,743
467,450
780,400
885,005
104,605
787,215
2,122,600
2,294,295
171,695
2,045,247
36,700
42,706
6,006
39,814
55,000
90,889
35,889
57,533
91,700
133,595
41,895
97,347
30,000
31,484
1,484
30,628
148,000
155,144
7,144
150,482
9,200
8,667
(533)
9,328
4,500
5,088
588
2,339
302,000
300,506
(1,494)
280,443
4,800
8,584
3,784
5,867
9,700
9,444
(256)
9,247
57,000
55,480
(1,520)
54,118
234,200
43,207
(190,993)
181,133
799,400
617,604
(181,796)
723,585
1,000
1,430
430
990
45,400
41,029
(4,371)
45,364
186,694
186,694
0
182,137
233,094
229,153
(3,941)
228,491
155,000
122,947
(32,053)
96,356
6,500
6,208
(292)
5,480
1,500
1,430
(70)
2,880
500
3,682
3,182
3,918
20,000
26,255
6,255
19,413
183,500
160,522
(22,978)
128,047
58,000
72,191
14,191
69,452
24,100
22,801
(1,299)
31,786
1,500
1,009
(491)
1,712
3,000
3,711
711
6,052
61,440
48,681
(12,759)
16,543
26,500
52,428
25,928
33,657
10,000
10,003
3
7,592
184,540
210,824
26,284
166,794
$3,614,834
$3,645,993
$31,159
$3,389,511
66
CITY OF CLERMONT, FLORIDA
GENERALFUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1997
1998
FAVORABLE
1997
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
General Government:
Legislative:
Personal services
$22,329
$22,329
$
$20,668
Operating expenses
9,872
10,615
(743)
6,599
Total Legislative
32,201
32,944
(743)
27,267
Executive:
Personal services
133,837
134,527
(690)
128,896
Operating expenses
8,878
6,851
2,027
5,173
Capital outlay
3,289
3,211
78
1,638
Total Executive
146,004
144,589
11415
135,707
Finance and Administrative:
Personal services
221,558
225,943
(4,385)
197,828
Operating expenses
61,317
75,787
(14,470)
65,881
Capital outlay
13,400
4,050
9,350
20,935
Total Finance and Administrative
296,275
305,780
(9,505)
284,644
Legal Services:
Operating expenses
11,050
9,000
2,050
11,025
Total Legal Services
11,050
9,000
2,050
11,025
Planning and Zoning:
Personal services
178,779
179,480
(701)
139,917
Operating expenses
87,316
220,427
(133,111)
176,409
Capital outlay
27,360
23.266
4,094
19,149
Total Planning and Zoning
293,455
423,173
(129,718)
335,475
Other General Services:
Personal services
30,571
20,891
9,680
...
Operating expenses
30,997
48,358
(17,361)
21,271
Capital outlay
7,325
7,126
199
...
Total Other General Services
68,893
76,375
(7,482)
21,271
Total General Government
847,878
991,861
(143,983)
815,389
(continued)
67
CITY OF CLERMONT, FLORIDA
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1997
Public Safety:
Law Enforcement:
Personal services
Operating expenses
Capital outlay
Total Law Enforcement
Fire Control:
Personal services
Operating expenses
Capital outlay
Total Fire Control
Total Public Safety
Physical Environment:
Public Works:
Personal services
Operating expenses
Capital outlay
Total Physical Environment
Transportation:
Road and Streets:
Personal services
Operating expenses
Capital outlay
Total Transportation
1998
VARIANCE
FAVORABLE 1997
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
1,031,038
1,069,922
(38,884)
911,196
158,303
156,875
1,428
141,234
142,751
155,027
(12,276)
92,222
63,946
64,904
(958)
54,625
28,068
43,081
(15,013)
38,300
126,142
124,651
1,491
61,850
218,156
232,636
(14,480)
154,775
1,550,248
1,614,460
(64,212)
1,299,427
100,746
98,691
2,055
78,834
40,533
45,391
(4,858)
46,069
13,500
12,128
1,372
5,149
154,779
156,210
(1,431)
130,052
176,554 172,876
489,079 472,515
3,678
169.632
(32,365)
193,781
45,251
543,468
(continued)
68
CITY OF CLERMONT, FLORIDA
GENERALFUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1997
1998
VARIANCE
FAVORABLE 1997
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Economic Development:
Operating expenses
10,815
11,146
(331)
9,347
Total Economic Environment
10,815
11,146
(331)
9,347
Human Services:
Animal Control:
Personal services
16,557
19,458
(2,901)
16,455
Operating expenses
5,068
4,692
376
4,519
Total Human Services
21,625
24,150
(2,525)
20,974
Culture and Recreation:
Library:
Operating expenses
130,560
130,746
(186)
122,572
Debt service
6,390
6,389
1
6,637
Total Library
136,950
137,135
(185)
129,209
Parks and Recreation:
Personal services
275,893
251,192
24,701
255,920
Operating expenses
188,328
196,574
(8,246)
281,772
Capital outlay
524,323
141,543
382,780
538,741
Total Parks and Recreation
988,544
589,309
399,235
1,076,433
Total Culture and Recreation
1,125,494
726,444
399,050
1,205,642
TOTAL EXPENDITURES
$4,199,918
$3,996.786
$203.132
$4,387,712
69
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70
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.
71
CITY OF CLERMONT, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
INFRA- BLOCK
STRUCTURE IMPACT FEE GRANT TOTALS
ASSETS
FUND FUND
FUND
1998
1997
Cash and equivalents
$ ... $142,109
$20,201
$162,310
$104,134
Investments
9,836 ...
...
9,836
...
Due from other government
69,698 ...
...
69,698
37,187
Mortgages receivable
395,960
395,960
300,565
TOTAL ASSETS
$79,534 $142,109
$416,161
$637,804
$441,886
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
$6,933 $ ...
$3,351
$10,284
$4
Contracts payable
10,129
...
10,129
9,453
Interfund payable
...
22,094
22,094
...
Deferred revenue
... ...
395,960
395,960
300,565
Total Liabilities
17,062 ...
421,405
438,467
310,022
Fund Balance
62,472
142,109
(5,244)
199,337
131,864
TOTAL LIABILITIES AND FUND BALANCE
$79,534
$142,109
$416,161
$637,804
$441,886
72
CITY OF CLERMONT, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
INFRA-
BLOCK
STRUCTURE IMPACT FEE
GRANT
TOTALS
FUND FUND
FUND
1998
1997
Revenues:
Taxes
$475,531 $
$ ...
$475,531
$451,855
Intergovernmental
... ...
349,238
349,238
264,996
Miscellaneous:
Interest
3,279 5,986
...
9,265
6,703
Impact fees
Total Revenues
Expenditures:
Current:
Public safety
Transportation
Economic environment
Culture and recreation
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Uses):
Operating transfers out
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues Over
Expenditures and Other Financing (Uses)
Fund Balances - October 1
FUND BALANCES - SEPTEMBER 30
200,960 200,960 127,284
478,810 206,946 349,238 1,034,994 850,838
19,170 ...
... 19,170
...
116,870 ...
... 116,870
5,249
... ...
405,784 405,784
238,075
17,420 ...
... 17,420
...
153,460
405,784 559,244
243,324
325,350 206,946
(56,546) 475,750
607,514
(300,061) (108,216)
(408,277)_
(659,311)
25,289
98,730
(56,546)
67,473
(51,797)
37,183
43,379
51,302
131,864
183,661
$62,472
$142,109
($5,244)
$199,337
$131,864
73
CITY OF CLERMONT, FLORIDA
INFRASTRUCTURE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
1998
Revenues:
Taxes
Miscellaneous:
Interest
Total Revenues
Expenditures:
Current:
Public safety
Transportation
Culture and recreation
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Uses):
Operating transfers out
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues Over
Expenditures and Other Financing (Uses)
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
VARIANCE
FAVORABLE
1997
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
$469,000
$475,531
$6,531
$451,855
500
3,279
2,779
994
469,500
478,810
9,310
452,849
30,000
19,170
10,830
...
121,400
98,135
23,265
5,249
18,000
36,155
(18,155)
169,400
153,460
15,940
5,249
300,100
325,350
25,250
447,600
(299,882)
(300,061)
(179)
(467,535)
(299,882)
(300,061)
(179)
(467,535)
218
25,289
25,071
(19,935)
37,183
37,183
57,118
$37,401
$62,472
$25,071
$37,183
74
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.
75
CITY OF CLERMONT, FLORIDA
SALES TAX REVENUE BOND SINKING FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1998 AND 1997
ASSETS
Cash and equivalents
TOTAL ASSETS
FUND BALANCE
Fund Balance:
Reserved for debt service - principal
Reserved for debt service - interest
TOTAL FUND BALANCE
TOTALS
1998 1997
$84,039 $84,757
$84, 039 $84, 757
$61,667 $58,333
22.372 26.424
$84, 039 $84, 757
76
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, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
1998
Revenues:
Miscellaneous:
Interest
Total Revenues
Expenditures:
Debt Service:
Fees
Interest
Principal
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources:
Operating transfers in
Excess (Deficiency) of Revenues and
Other Financing Sources Over Expenditures
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
VARIANCE
FAVORABLE
1997
BUDGET ACTUAL (UNFAVORABLE)
ACTUAL
$5,000 $3,684 ($1,316)
$5,450
5,000 3,684 (1,316)
5,450
2,000
1,581
419
1,561
77,882
77,882
...
88,682
175,000
175,000
160,000
254,882
254,463
419
250,243
(249,882)
(250,779)
(897)
(244,793)
249,882
250,061
179
246,277
... (718) (718) 1,484
84,757 84,757 83,273
$84,757 $84,039 ($718) $84,757
77
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PROPRIETARY FUND TYPES
79
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:6
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.
WATER FUND
To account for the provision of water services to city
residents and some out of city customers. 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.
SEWER FUND
To account for the provision of sewer services to city
residents and some out of city customers. 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 are accounted for in this fund.
CITY OF CLERMONT, FLORIDA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
WATER
SEWER
SANITATION
STORMWATER
TOTALS
ASSETS
FUND
FUND
FUND
FUND
1998
1997
Current Assets:
Cash and equivalents
$123,465
$39,218
$129,100
$161,862
$453,645
$80,092
Investments
668,718
467,043
65,425
10,837
1,212,023
1,934,743
Receivables:
Accounts
117,506
100,561
59,310
15,110
292,487
219,602
Other
2,590
12,217
...
14,807
28,561
Due from other governments
...
...
2,802
...
2,802
...
Prepaid items
692
960
5,025
426
7,103
9,621
Inventory
27,905
...
...
...
27,905
18,404
Total Current Assets
940,876
619,999
261,662
188,235
2,010,772
2,291,023
Restricted Assets:
Cash and equivalents
190,276
373,457
...
...
563,733
913,370
Investments
781,752
1,246,549
...
...
2,028,301
1,037,333
Interfund receivables
...
...
524,856
Total Restricted Assets
972,028
1,620,006
2,592,034
2,475,559
Other Assets:
Deferred charges
85,655
169,312
254,967
295,554
Property, Plant and Equipment
Land
224,209
1,270,045
...
...
1,494,254
1,494,254
Water system
8,304,721
...
...
...
8,304,721
8,028,372
Sewer sytem
...
11,903,085
...
...
11,903,085
11,760,160
Improvements other than buildings
...
...
436,190
436,190
103,918
Machinery and equipment
256,112
315,398
770,133
97,528
1,439,171
1,384,544
8,785,042
13,488,528
770,133
533,718
23,577,421
22,771,248
Less accumulated depreciation
2,474,440
2,947,989
482,448
33,889
5,938,766
5,308,399
Net Property, Plant and Equipment
6,310,602
10,540,539
287,685
499,829
17,638,655
17,462,849
TOTAL ASSETS
$8,309,161
$12,949,856
$549,347
$688,064
$22,496,428
$22,524,985
82
WATER SEWER SANITATION STORMWATER
LIABILITIES AND FUND EQUITY FUND FUND FUND FUND
TOTALS
1998 1997
Liabilities:
Current Liabilities
(payable from current assets):
Accounts payable
$72,564
$4,871
$28,257
$53,494
$159,186
$54,895
Contracts payable
...
...
...
28,777
28,777
...
Other accrued expenses
31,823
12,463
11,875
1,309
57,470
62,021
Interfund payables
2,986
4,480
3,882
896
12,244
15,130
Total Current Liabilities
(payable from current assets)
107,373
21,814
44,014
84,476
257,677
132,046
Current Liabilities
(payable from restricted assets):
Contracts and retainage
...
...
...
...
...
264,902
Deposits
86,225
...
...
...
86,225
81,922
Accrued interest
77,662
107,484
...
...
185,146
187,414
Revenue bonds
50,750
124,250
...
...
175,000
170,000
Interfund payables
...
...
...
...
...
524,856
Total Current Liabilities
(payable from restricted assets)
214,637
231,734
446,371
1,229,094
Long -Term Liabilites:
Revenue bonds (net of current portion
and deferred refunding amount)
4,547,231
6,200,157
10,747,388
10,901,252
Total Long -Term Liabilities
4,547,231
6,200,157
10,747,388
10,901,252
Total Liabilities
4,869,241
6,453,705
44,014
84,476
11,451,436
12,262,392
Fund Equity:
Contributed capital
1,046,000
4,291,325
101,722
136,547
5,575,594
4,696,454
Retined Earnings:
Reserved for debt service
128,412
231,734
...
...
360,146
232,836
Reserved for expansion
628,979
1,156,538
...
...
1,785,517
1,067,569
Unreserved
1,636,529-
816,554
403,611
467,041
3,323,735
4,265,734
Total Retained Earnings
2,393,920
2,204,826
403,611
467,041
5,469,398
5,566,139
Total Fund Equity
3,439,920
6,496,151
505,333
603,588
11,044,992
10,262,593
TOTAL LIABILITIES AND FUND EQUITY
$8,309,161
$12,949,856
$549,347
$688,064
$22,496,428
$22,524,985
83
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M.
CITY OF CLERMONT, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
WATER SEWER SANITATION STORMWATER
FUND FUND FUND FUND
Operating Revenues
TOTALS
1998 1997
Charges for services
$1,345,408
$1,048,268
$653,772
$151,244
$3,198,692
$2,670,453
Miscellaneous
17,498
46,053
7,069
70,620
100,248
Total Operating Revenues
1,362,906
1,094,321
660,841
151,244
3,269,312
2,770,701
Operating Expenses:
Personal services
352,908
271,133
255,740
40,264
920,045
814,684
Utilities
135,052
135,038
...
...
270,090
250,936
Dumping fees
...
...
270,713
24,130
294,843
249,790
Administrative services
54,578
72,459
25,795
33,862
186,694
182,145
Repair and maintenance
195,028
65,824
16,962
2,660
280,474
142,418
Depreciation
248,886
300,105
71,224
9,868
630,083
541,169
Professional services
55,479
33,978
61,528
13,269
164,254
139,202
Insurance
10,209
25,622
11,137
1,856
48,824
61,037
Operating supplies
54,478
23,108
20,147
1,752
99,485
101,574
Office expense
15,733
10,653
3,452
1,520
31,358
33,711
Bad debt
1,100
1,900
2,300
625
5,925
5,547
Total Operating Expenses
1,123,451
939,820
738,998
129,806
2,932,075
2,522,213
Operating Income (Loss)
239,455
154,501
(78,157)
21,438
337,237
248,488
Nonoperating Revenues (Expenses):
Interest revenue
74,759
110,001
10,374
8,138
203,272
286,602
Interest expense
(245,440)
(374,020)
...
...
(619,460)
(639,981)
Grants/contributions
97,151
2,802
99,953
103,827
Total Nonoperating
Revenues (Expenses)
(73,530)
(264,019)
13,176
8,138
(316,235)
(249,552)
Income (Loss) Before
Operating Transfers
165,925
(109,518)
(64,981)
29,576
21,002
(1,064)
Operating transfers (out)
(117,743)
...
...
...
(117,743)
(93,835)
Net Income (Loss)
48,182
(109,518)
(64,981)
29,576
(96,741)
(94,899)
Retained Earnings - October 1
2,345,738
2,314,344
468,592
437,465
5,566,139
5,661,038
RETAINED EARNINGS - SEPTEMBER 30
$2,393,920
$2,204,826
$403,611
$467,041
$5,469,398
$5,566,139
85
CITY OF CLERMONT, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
WATER
SEWER
SANITATION
STORMWATER
TOTALS
FUND
FUND
FUND
FUND
1998
1997
Cash Flows From Operating Activities:
Charges for services
$1,341,955
$1,066,676
$654,931
$150,922
$3,214,484
$2,788,547
Cash payments to suppliers
(464,684)
(366,402)
(433,037)
(27,246)
(1,291,369)
(1,224,802)
Cash payments for employee services
(345,389i
(276,223)
(258,940)
(40,200)
{920,752i
(788,841)
Net Cash Provided (Used)
By Operating Activities
531,882
424,051
(37,046)
83,476
1,002,363
774,904
Cash Flows From NonCapital
Financing Activities:
Operating transfers out
(117,743)
...
...
...
(117,743)
(93,835)
Grants/contributions
97,151
97,151
103,827
Net Cash Provided (Used) By
NonCapital Financing Activities
(20,592)
(20,592)
9,992
Cash Flows From Capital and
Related Financing Activities:
Acquisition and construction of capital assets
(358,863)
(347,694)
(23,134)
(312,607)
(1,042,298)
(3,519,244)
Principal paid
(49,300)
(120,700)
...
...
(170,000)
(530,662)
Interest paid
(225,879)
(334,127)
...
...
(560,006)
(608,395)
Contributed capital
254,395
488,198
...
136,832
879,425
946,148
Transfer of debt
112,763
(112,763)
...
...
...
Net Cash Provided (Used) By Capital and
Related Financing Activities
(266,884)
(427,086)
(23,134)
(175,775)
(892,879)
(3,712,153)
Cash Flows From Investing Activities:
Interest
74,759
110,001
10,374
8,138
203,272
286,602
Investment sales
...
...
133,061
211,776
344,837
3,163,911
Investment purchases
(452,463)
(160,622)
(613,085)
(8,448)
Net Cash Provided (Used)
By Investing Activities
(377,704)
(50,621)
143,435
219,914
(64,976)
3,442,065
Net Increase (Decrease)
in Cash and Equivalents
(133,298)
(53,656)
83,255
127,615
23,916
514,808
Cash and Equivalents at Beginning of Year
447,039
466,331
45,845
34,247
993,462
478,654
Cash and Equivalents at End of Year
$313,741
$412,675
$129,100
$161,862
$1,017,378
$993,462
86
WATER SEWER SANITATION STORMWATER
FUND FUND FUND FUND
TOTALS
1998 1997
Reconciliation of Operating Income To Net Cash
Provided By Operating Activities:
Operating income (loss)
$239,455
$154,501
($78,157)
$21,438
$337,237
$248,488
Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation
248,886
300,105
71,224
9,868
630,083
541,169
Change in Assets and Liabilities:
Decrease (Increase) in receivables
(25,254)
(27,645)
(5,910)
(322)
(59,131)
11,267
Decrease (Increase) in prepaids
880
1,217
(120)
541
2,518
1,112
Decrease (Increase) in inventory
(9,501)
...
...
(9,501)
7,701
Increase (Decrease) in accrued expenses
7,519
(5,340)
(8,628)
(1,238)
(7,687)
25,792
Increase (Decrease) in payables
69,897
1,213
(15,455)
53,189
108,844
(60,625)
Total Adjustments
292,427
269,550
41,111
62,038
665,126
526,416
Net Cash Provided (Used) by Operating Activities
$531,882
$424,051
($37,046)
$83,476
$1,002,363
$774,904
87
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W.
INTERNAL SERVICE FUND
The Internal Service Fund is used to account for the
financing of goods or services provided by one department
to the 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.
CITY OF CLERMONT, FLORIDA
GROUP SELF INSURANCE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1998 AND 1997
TOTALS
ASSETS
1998
1997
Cash and equivalents
$9,525
$63,692
Investments
107,223
38,706
TOTAL ASSETS
$116,748
$102,398
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
$32,324
$9,567
Retained Earnings:
Unreserved
84,424
92,831
TOTAL LIABILITIES AND FUND EQUITY
$116,748
$102,398
.o]
CITY OF CLERMONT, FLORIDA
GROUP SELF INSURANCE FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEARS ENDED SEPTEMBER 30, 1998 AND 1997
TOTALS
1998 1997
Operating Revenues:
Charges for services
$331,166
$303,251
Insurance stop -loss payments
2,978
6,260
Total Operating Revenues
334,144
309,511
Operating Expenses:
Re -insurance premiums
42,904
43,037
Administrative fees
19,280
17,671
Medical claims
286,767
181,405
Total Operating Expenses
348,951
242,113
Operating Income (Loss)
(14,807)
67,398
Nonoperating Revenues:
Interest revenue
6,400
4,219
Net Income (Loss)
(8,407)
71,617
Retained Earnings - October 1
92,831
21,214
RETAINED EARNINGS - SEPTEMBER 30
$84,424
$92,831
4
CITY OF CLERMONT, FLORIDA
GROUP SELF INSURANCE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 1998 AND 1997
TOTALS
1998 1997
Cash Flows From Operating Activities:
Cash received from customers
$334,144
$309,511
Cash payments to suppliers
(62,184)
(60,708)
Cash payments for medical claims
(264,010)
(183,747)
Net Cash Provided By Operating Activities
7,950
65,056
Cash Flows From Investing Activities:
Investment purchase
(68,517)
(5,583)
Interest
6,400
4,219
Net Cash Used By Investing Activities
(62,117)
(1,364)
Net Increase (Decrease) in cash
(54,167)
63,692
Cash at Beginning of Year
63,692
Cash at End of Year
$9,525
$63,692
Reconciliation of Operating Income to Net Cash
Provided (Used) By Operating Activities:
Operating income (loss) ($14,807) $67,398
Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) By Operating Activities:
Increase (Decrease) in payables 22,757 (2,342)
Net Cash Provided By Operating Activities $7,950 $65,056
92
FIDUCIARY FUND TYPES
93
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TRUST FUNDS
Trust Funds are used to account for assets held by the city
in a trustee capacity.
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 fire-
fighters. 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.
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.
95
ASSETS
Cash and equivalents
Investments
Interest receivable
Interfund receivable
Total Assets
FUND BALANCES
Reserved for cemetery care
Net assets held in trust for pension benefits
Total Fund Balance
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
FIDUCIARY FUND TYPES
SEPTEMBER 30, 1998 AND 1997
NON -
PENSION EXPENDABLE
TRUST TRUST TOTALS
FUNDS FUND 1998 1997
$ ... $12,023 $12,023 $7,874
4,452,319 271,810 4,724,129 4,384,021
... ... ... 4,204
37,837 37,837 31,900
$4,490,156 $283,833 $4,773,989 $4,427,999
$ ... $283,833 $283,833 $261,038
4,490,156 ... 4,490,156 4,166,961
$4,490,156 $283,833 $4,773,989 $4,427,999
96
ASSETS
Investments (at fair value)
Receivables
Interfund
TOTAL ASSETS
LIABILITIES
Net assets held in trust
for pension benefits
CITY OF CLERMONT, FLORIDA
PENSION TRUST FUNDS
COMPARATIVE STATEMENT OF PLAN NET ASSETS
SEPTEMBER 30, 1998 AND 1997
GENERAL EMPLOYEES TOTALS
Defined Defined Police Firemen
Benefit Contribution Pension Pension 1998 1997
$999,757 $1,012,235
$1,881,796
$558,531 $4,452,319
$4,135,061
29,865
7,972
37,837
31,900
$999,757 $1,042,100
$1,889,768
$558,531 $4,490,156
$4,166,961
$999,757 $1,042,100 $1,889,768 $558,531 $4,490,156 $4,166,961
97
CITY OF CLERMONT, FLORIDA
PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS
FOR THE YEARS ENDED SEPTEMBER 30, 1998 AND 1997
GENERAL EMPLOYEES TOTALS
Defined Defined Police Firemen
Benefit Contribution Pension Pension 1998 1997
Additions
Contributions
Employer
$7,948
$106,596
$32,905
$ ...
$147,449
$107,992
Plan members
...
...
6,287
486
6,773
5,973
State
71,123
45,123
116,246
77,540
Total Contributions
7,948
106,596
110,315
45,609
270,468
191,505
Investment income
70,414
64,763
119,228
34,562
288,967
806,767
Less: Investment expenses
11,629
10,219
16,968
7,748
46,564
44,744
Net investment income
58,785
54,544
102,260
26,814
242,403
762,023
Total Additions
66,733
161,140
212,575
72,423
512,871
953,528
Deductions
Benefits
76,082
44,391
68,412
791
189,676
147,040
Net increase (decrease)
(9,349)
116,749
144,163
71,632
323,195
806,488
Net assets held in
trust for pension benefits
Beginning of year
1,009,106
925,351
1,745,605
486,899
4,166,961
3,360,473
End of Year
$999,757
$1,042,100
$1,889,768
$558,531
4,490,156
$4,166,961
98
CITY OF CLERMONT, FLORIDA
NONEXPENDABLE TRUST FUND
CEMETERY PERPETUAL CARE FUND
COMPARATIVE BALANCE SHEET
SEPTEMBER 30, 1998 AND 1997
ASSETS
Cash and equivalents
Investments
Interest receivable
TOTAL ASSETS
FUND BALANCE
Fund Balances:
Reserved for cemetery care
TOTALS
1998 1997
$12,023 $7,874
271,810 248,960
A 9na
$283,833 $261,038
$283,833 $261,038
CITY OF CLERMONT, FLORIDA
NONEXPENDABLE TRUST FUND
CEMETERY PERPETUAL CARE FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 1998 AND 1997
Operating Revenues:
Sales - cemetery lots
Operating Expenses:
Operating supplies
Operating income
Fund Balances - Beginning of Year
Fund Balances - End of Year
TOTALS
1998 1997
$22,795 $15,200
... 144
22,795 15,056
261,038 245,982
$283,833 $261,038
100
CITY OF CLERMONT, FLORIDA
NONEXPENDABLE TRUST FUND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
TOTALS
1998 1997
Cash Flows from Operating Activities:
Cash received from customers $22,795 $15,200
Cash payments to suppliers (144)
Net Cash Provided by Operating Activities 22,795 15,056
Cash Flows from Investing Activities:
Investment purchases (22,850) (6,265)
Cash Flows from Non -capital Financing Activities:
Interest receivable tranferred to General Fund 4,204 (4,204)
Net Increase in Cash and Equivalents 4,149 4,587
Cash and Equivalents at Beginning of Year 7,874 3,287
Cash and Equivalents at End of Year $12,023 $7,874
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income $22,795 $15,056
Net Cash Provided by Operating Activities $22,795 $15,056
101
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102
ACCOUNT GROUPS
103
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104
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.
105
CITY OF CLERMONT, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES
FOR THE YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
TOTALS
1998 19A7
General Fixed Assets:
Land
$1,404,972
$1,233,307
Buildings
2,838,468
2,814,432
Improvements other than buildings
5,098,309
4,948,446
Equipment and vehicles
2,136,808
1,827,355
Total General Fixed Assets
$11,478,557
$10,823,540
Investments in General Fixed Assets From:
Capital Projects Funds:
Revenue bonds
$2,302,411
$2,302,411
Federal, state and local grants
537,747
474,207
General Fund revenues
5,747,478
5,309,461
Special Revenue Fund revenues
2,256,944
2,103,484
Gifts and other
633,977
633,977
Total Investment in General Fixed Assets
$11,478,557 $10,823,540
106
FUNCTION
General government
Public safety
Physical environment
Transportation
Culture/recreation
Older assets not maintained by function
TOTAL GENERAL FIXED ASSETS
CITY OF CLERMONT, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION
AS OF SEPTEMBER 30, 1998
TOTAL
LAND
$422,528
$78,009
2,477,849
183,458
1,126,423
47,168
2,399,068
...
4,571,504
868,229
481,185
228,108
$11,478,557 $1,404,972
IMPROVEMENTS
OTHER THAN
BUILDINGS BUILDINGS EQUIPMENT
$25,186 $ ... $319,333
1,098,827 ... 1,195,564
721,814
80,692
276,749
...
2,314,930
84,138
907,371
2,556,314
239,590
85,270
146,373
21,434
$2,838,468
$5,098,309
$2,136,808
107
CITY OF CLERMONT, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION
YEAR ENDED SEPTEMBER 30, 1998
GENERAL GENERAL
FIXED FIXED
ASSETS ASSETS
FUNCTION 9/30/97 ADDITIONS DEDUCTIONS 9/30/98
General government $387,652 $34,876 $ ... $422,528
Public safety 2,188,338 289,511 ... 2,477,849
Physical environment
Transportation
Culture/recreation
Older assets not maintained by function
TOTAL GENERAL FIXED ASSETS
1,126,423 ... ...
2,232,504 166,564 ...
4,407,438 164,066 ...
481,185
$10,823,540 $655,017 $
1,126,423
2,399,068
4,571,504
481,185
$11,478,557
108
CITY OF CLERMONT, FLORIDA
SCHEDULE OF GENERAL LONG-TERM DEBT
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
Amount To Be Provided For The Pa ment of General Lonq-Term Debt
Amount available for principal payment in debt service fund
Amount to be provided
Total to be Provided
General Long -Term Debt Payable
Revenue bonds payable
Note payable - Library
Total General Long -Term Debt Payable
TOTALS
1998 1997
$61,667
$58,333
919,812
1,102, 563
$981,479
$1,160,896
$950,000 $1,125,000
31,479 35,896
$981,479 $1,160,896
109
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110
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, 1998
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 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.
111
CITY OF CLERMONT, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
FISCAL
GENERAL
PUBLIC
PHYSICAL
YEAR
GOVERNMENT
SAFETY
ENVIRONMENT
1988-89
$ 392,504
$ 691,581 $
95,476
1989-90
464,818
767,734
99,084
1990-91
440,789
830,411
99,989
1991-92
397,880
931,441
101,512
1992-93
446,284
997,295
137,960
1993-94
420,678
1,017,962
144,789
1994-95
492,751
1,063,691
134,633
1995-96
561,876
1,257,255
112,794
1996-97
636,895
1,299,427
126,409
1997-98
808,901
1,633,630
152,476
(1) Includes General and Special Revenue Funds
(2) Community Development Block Grant expenditures were included
in the 1992-93, 1995-96, 1996-97 and 1997-98 Fiscal Years.
112
TABLE 1
(2)
ECONOMIC
HUMAN
CULTURE AND
TRANSPORTATION
ENVIRONMENT
SERVICES
RECREATION
TOTAL
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
283,169
545,518
15,317
518,837
2,944,380
257,539
14,065
17,034
573,517
2,445,584
413,565
10,895
17,141
934,829
3,067,505
448,615
89,101
20,191
1,145,205
3,635,037
912,130
247,422
20,974
1,205,642
4,448,899
589,385
416,930
24,150
743,864
4,369,336
113
FISCAL
YEAR
CITY OF CLERMONT, FLORIDA
GENERAL REVENUE BY SOURCE (1)
LAST TEN FISCAL YEARS
TAXES
LICENSES
AND
PERMITS
INTER-
GOVERNMENTAL
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
1992-93
1,793,267
40,054
857,841
1993-94
1,983,016
39,910
505,432
1994-95
2,142,822
67,549
576,484
1995-96
2,377,962
84,260
665,899
1996-97
2,497,102
97,347
988,581
1997-98
2,769,826
133,595
1,012,582
(1) Includes General and Special Revenue Funds
(2) For the 1988-89 Fiscal Year, 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.
114
(2)
CHARGES
FOR
91,679
8,585
19,327
32,676
36,662
38,402
57,241
32,537
46,354
42,459
FINES
AND
FORFEITURES
$ 34,252
40,572
69,571
90,039
75,224
91,066
152,020
151,879
128,047
160,522
INTEREST
ON
INVESTMENTS
$ 124,473
144,963
106,962
84,415
49,740
9,906
86,600
102,405
81,605
85,140
MISCELLANEOUS
$ 44,905
33,057
66,917
55,515
154,318
122,270
510,081
244,904
224,626
293,853
TABLE 2
TOTAL
$ 2, 116, 982
2,314,650
2,360,272
2,701,399
3,007,106
2,790,002
3,592,797
3,659,846
4,063,662
4,497,977
115
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
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
1992-93
1992
190,878,314
171,790,483
2.729
1993-94
1993
190,036,425
171,032,783
2.979
1994-95
1994
206, 921, 182
186, 229, 064
2.979
1995-96
1995
228,727,934
205,855,141
2.979
1996-97
1996
236,824,197
213,141,778
2.979
1997-98
1997
274,964,642
247,468,178
2.979
(1) Final Gross taxable assessed valuation per Lake County
Property Appraiser's 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
116
TABLE 3
RATIO OF
RATIO OF
CURRENT TAX
(3)
TOTAL TAX
COLLECTIONS
DELINQUENT
TOTAL
COLLECTIONS
TAX
CURRENT TAX
TO TOTAL
TAX
TAX
TO TOTAL
LEVY
COLLECTIONS
TAX LEVY
COLLECTIONS
COLLECTIONS
TAX LEVY
$ 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%
468,816
452,756
96.6%
496
453,252
96.7%
509,504
494,226
97.0%
631
494,857
97.1%
554,776
538,217
97.0%
893
539,110
97.2%
613,242
592,529
96.6%
2,406
594,935
97.0%
634,949
608,205
95.8%
9,224
617,429
97.2%
737,207
700,112
95.0%
9,841
709,953
96.3%
117
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
1988-89
1988
2.429
3.400
7.742
.838
1989-90
1989
2.429
4.938
8.451
.621
1990-91
1990
2.429
4.938
8.749
.771
1991-92
1991
2.729
4.938
8.880
.751
1992-93
1992
2.729
4.864
9.005
.740
1993-94
1993
2.979
5.135
8.938
.517
1994-95
1994
2.979
5.135
8.515
.400
1995-96
1995
2.979
4.927
9.678
.384
1996-97
1996
2.979
4.909
9.228
.384
1997-98
1997
2.979
4.733
9.100
.384
(1) Information was obtained from the City of Clermont Tax Rolls,
as prepared by the Lake County Property Appraiser's office
(2) Tax rate per $1,000 of taxable valuation
118
TABLE 4
SOUTH LAKE
ST. JOHNS RIVER
HOSPITAL
WATER MANAGEMENT
DISTRICT
DISTRICT
TOTAL
2.000
.281
17.090
2.000
.346
18.785
2.000
.358
19.545
2.000
.358
19.656
2.000
.358
19.696
2.000
.470
20.039
2.000
.482
19.511
2.000
.482
20.450
2.000
.482
19.982
2.000
.482
19.678
119
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120
CITY OF CLERMONT, FLORIDA
WATER AND SEWER CUSTOMER DATA
LAST TEN FISCAL YEARS
TABLE 5
NUMBER OF CUSTOMERS
FISCAL WATER _ SEWER
YEAR RESIDENTIAL COMMERCIAL RESIDENTIAL COMMERCIAL
ANNUAL
WATER
USAGE
(GAL)
1988-89
N/A
N/A
N/A
N/A
505,028,000
1989-90
N/A
N/A
N/A
N/A
448,388,000
1990-91
N/A
N/A
N/A
N/A
440,624,000
1991-92
2,419
355
1,849
307
429, 716, 000
1992-93
2,484
366
1,893
313
465,789,000
1993-94
2,526
385
1,931
330
493, 821, 000
1994-95
3,136
392
1,978
350
482, 962, 000
1995-96
3,483
391
2,334
358
630,763,000
1996-97
3,987
439
2,770
386
833,834,000
1997-98
4,549
447
3,099
388
1,087,078,000
Source: Water and Sewer Customer Data Reports as of September 30
121
CITY OF CLERMONT, FLORIDA
UTILITY REVENUE BOND COVERAGE - ALL UTILITY REVENUE BONDS
LAST TEN FISCAL YEARS
TOTAL
(1)
FISCAL
SYSTEM
OPERATING
YEAR
REVENUES
EXPENSES
1988-89
$ 1,368,916
$ 627,603
1989-90
1,343,909
731,397
1990-91
1,295,653
743,715
1991-92
1,283,276
725,969
1992-93
1,306,683
794,614
1993-94
1,315,271
956,638
1994-95
1,569,180
948,234
1995-96
1,997,673
1,038,809
1996-97
2,277,479
1,240,707
1997-98
2,641,987
1,514,280
(1) Excludes interest expense and depreciation
(2) Maximum debt service in any subsequent year is $ 726,858
122
TABLE 6
(2)
DEBT
NET SERVICE
REVENUES REQUIREMENTS COVERAGE
$ 741,313
$ 302,628
2.44%
612,512
327,330
1.87%
551,938
335,579
1.64%
557,307
339,689
1.640
512,069
338,256
1.510
358,633
290,083
1.23%
620,946
326,420
1 .90 a
958,864
509,355
1.88%
1,036,772
708,660
1.460
1,127,707
711,250
1.590
123
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124
CITY OF CLERMONT, FLORIDA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
TABLE 7
(2)
(3)
FISCAL
(1)
SCHOOL
UNEMPLOYMENT
YEAR
POPULATION
ENROLLMENT
RATE
1988-89
6,642
1,788
7.7%
1989-90
6,910
1,897
6.2%
1990-91
6,910
1,975
8 .7 %
1991-92
6,930
2,169
7.4%
1992-93
7,013
1,482
4.3%
1993-94
7,174
1,629
8.1%
1994-95
7,233
1,787
5.0%
1995-96
7,291
2,381
5.2%
1996-97
7,582
2,180
3.1%
1997-98
8,202
2,412
2.2%
DATA SOURCES:
(1) College of Business Administration, University of Florida -
Bureau of Economic and Business Research
(2) Figures represent Grades K-12 in Public Schools.
Source - Department of Education
(3) Information available on countywide basis only. Data was
obtained from the Florida Department of Labor, Bureau of
Labor Market Information
125
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
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
1992-93
4
5,551,684
46
3,051,541
1993-94
2
402,000
26
2,091,200
1994-95
2
450,000
19
1,412,837
1995-96
17
6,735,881
157
10, 386, 535
1996-97
14
3,340,805
289
17,797,703
1997-98
13
24, 686, 500
333
21, 414, 385
(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
Appraiser's form DR-422
(4) Non -Taxable assessed valuation per Florida Department
of Revenue
126
(1)
ASSESSED TAXABLE
BANK
(3) PROPERTY VALUE
(4)
DEPOSITS
TAXABLE
NONTAXABLE
$ 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
1, 632, 882, 000
171, 790, 483
50, 404, 700
1, 701, 038, 000
171, 032, 783
56, 272, 383
1, 718, 591, 000
186, 229, 064
56, 910, 019
1, 776, 670, 000
205, 855, 141
58, 399, 561
2, 035, 941, 000
213, 141, 778
65, 771, 140
2, 421, 416, 000
247, 468, 178
75, 608, 647
127
CITY OF
CLERMONT, FLORIDA
PRINCIPAL TAXPAYERS
TABLE 9
PERCENTAGE
ASSESSED
OF TOTAL
VALUATION
ASSESSED
TAXPAYER
AS OF 1/1/98
VALUATION
CPF Property Investments, Inc.
$ 8,143,511
3.29%
8556 Palm Parkway
Orlando, FL 32836
Lennar Homes, Inc.
6,887,946
2 .78 %
700 NW 107'-h Avenue
Miami, FL 33172
South Lake Hospital
5,115,051
2.07%
847 Eighth Street
Clermont, FL 34711
Hurtak, Family Partnership Ltd.
5,086,605
2.06%
525 NE 58t' Street
Miami, FL 33137
Health Care Reit, Inc.
4,134,828
1.67%
P.O. Box 1475
Toledo, OH 43603
Mercator Properties, Inc.
3,864,651
1.56%
2822 Forsythe Road
Winter Park, FL 32892
Lakeworth MHP, Ltd.
3,122,017
1.26%
5603 N. State Road 7
Ft. Lauderdale, FL 33319
Lake Highland Associates, Inc.
2,966,204
1.24%
D.b.a. West Minister Care of Clermont
151 E. Minnehaha Avenue
Clermont, FL 34711
Grand View Garden Homes, LC
2,217,479
.90%
283 Sabal Palm Terrace
Boca Raton, FL 33432
Indian Shores Development
1,693,085
.68%
125 N. Eola Drive
Orlando, FL 32825
TOTAL
$ 43,231,377
17.47%
Source: 1999 City of Clermont Tax Roll, prepared by the Lake
County Property Appraiser's office.
128
CITY OF CLERMONT, FLORIDA
LARGEST EMPLOYERS
EMPLOYER
South Lake Hospital
Publix
Winn Dixie
West Minister Care of Clermont
Lake County School System
City of Clermont
CBS Industries
Quincy's Steak House
Exceletech, Inc.
Rolling Hills Ford
TABLE 10
NUMBER OF
INDUSTRY EMPLOYEES
Health Care
352
Grocery
276
Grocery
236
Retirement and Nursing
150
Education
127
Municipality
109
Construction Supplies
91
Restaurant
72
Steel Fabrication/Erection
64
Automobile Dealer
48
129
CITY OF CLERMONT, FLORIDA
SCHEDULE OF INSURANCE COVERAGES
SEPTEMBER 30, 1998
TYPE OF COVERAGE & INSURER
LIABILITY
Florida Municipal
Liability Self
Insurer's Program
WORKERS COMPENSATION
F1 on da Municipal Self
Insurers Fund
FIRE AND EXTENDED COVERAGE
POLICY
NUMBER
FML 304
FM 389
Florida Municipal Property FMP 49
Self -Insurers Program
EXPIRATION
DATE
09130198
09130198
09130198
130
TABLE 11
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 $ 51000
Accidental Death-Police/Fire $ 50,000
Statutory
Workers Compensation $100,0001500,000
Blanket Building per Schedule
and Property $ 18, 638,340
131
CITY OF CLERMONT, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 1998
TABLE 12
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
11.26 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
2
Number of Police Officers
22
EDUCATION:
Number of Schools:
Elementary
2
Middle
1
Number of Teachers
127
Number of Students
2,412
MUNICIPAL WATER DEPARTMENT:
Number of Consumers
4,996
Average Daily Consumption
2,978,295 gallons
Miles of Water Mains
71 miles
WASTEWATER AND SANITARY SEWERS:
Sanitary Sewers
60 miles
Storm Sewers
10 miles
RECREATIONAL AND CULTURE:
Number of Parks
22 with 88 acres
Number of Libraries
1
Number of Volumes
45,000
TOTAL CITY EMPLOYEES:
Full -Time
96
Part -Time
6
132
OTHER REPORTS
/ GREENLEE CLERMONT: Herbert John Greenlee, Jr., C.P.A.
Jerry D. Brown, C.P.A.
T KURRAS MOUNT DORA: John S. Rice, C.P.A.
RACE & Patricia A. Sykes -Amos, C.P.A.
C. L. (Chip) Garner, C.P.A.
BROWN, PA
Dorothy A. Kurras, C.P.A.
CERTIFIED PUBLIC John A. Powers, C.P.A.
ACCOUNTANTS Mark A. Farner, C.P.A.
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
— REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
The Honorable Mayor and City Council
City of Clermont, Florida
We have audited the general purpose financial statements of City of Clermont, Florida as of and for the
year ended September 30, 1998, and have issued our report thereon dated February 15, 1999. We
conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Compliance
As part of obtaining reasonable assurance about whether City of Clermont, Florida's general purpose
financial statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance that are required to
be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Clermont, Florida's internal control over
financial reporting in order to determine our auditing procedures for the purpose of expressing our
opinion on the general purpose financial statements and not to provide assurance on the internal control
over financial reporting. Our consideration of the internal control over financial reporting would not
necessarily disclose all matters in the internal control over financial reporting that might be material
weaknesses. A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that misstatements in
amounts that would be material in relation to the 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 over financial reporting and its
operation that we consider to be material weaknesses.
MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
605 Montrose Street 133 627 N. Donnelly Street
Post Office Box 120400 • Clermont, FL 34712-0400 Post Office Box 8 • Mount Dora, FL 32756
Telephone: (352) 394-3256 Telephone: (352) 383-6300
This report is intended for the information of the City Council, management, and awarding agencies.
However, this report is a matter of public record and its distribution is not limited.
Mount Dora, Florida
February 19 1999
134
► GREENLEE
KURRAS
RICE &
BROWN, PA
CERTIFIED PUBLIC
9k; ACCOUNTANTS
CLERMONT: Herbert John Greenlee, Jr., C.P.A.
Jerry D. Brown, C.P.A.
MOUNT DORA: John S. Rice, C.P.A.
Patricia A. Sykes -Amos, C.P.A.
C. L. (Chip) Garner, C.P.A.
Dorothy A. Kurras, C.P.A.
John A. Powers, C.P.A.
Mark A. Farrier, C.P.A.
REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
The Honorable Mayor and City Council
City of Clermont, Florida
Compliance
We have audited the compliance of City of Clermont, Florida, with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Circular A-133, Compliance
Supplement that are applicable to its major programs for the year ended September 30, 1998. City of
Clermont, Florida's major program is identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts and grants applicable to each of its major programs is the responsibility of City
of Clermont, Florida's management. Our responsibility is to express an opinion on City of Clermont,
Florida's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local
Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that
we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material effect on a
major program occurred. An audit includes examining, on a test basis, evidence about City of Clermont,
Florida's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Our audit does not provide a legal determination on City of Clermont, Florida's compliance with those
requirements.
In our opinion, City of Clermont, Florida, complied, in all material respects, with the requirements
referred to above that are applicable to its major program for the year ended September 30, 1998.
MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
605 Montrose Street 135 627 N. Donnelly Street
Post Office Box 120400 - Clermont, FL 34712-0400 Post Office Box 8 - Mount Dora, FL 32756
Telephone: (352) 394-3256 Telephone: (352) 383-6300
Internal Control Over Compliance
The management of City of Clermont, Florida is responsible for establishing and maintaining effective
internal control over compliance with requirements of laws, regulations, contracts and grants applicable
to federal and state programs. In planning and performing our audit, we considered City of Clermont,
Florida's internal control over compliance with requirements that could have a direct and material effect
on a major program in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance and to test and report on internal control over compliance in accordance with
OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in
the internal control that might be material weaknesses. A material weakness is a condition in which the
design or operation of one or more of the internal control components does not reduce to a relatively low
level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants
that would be material in relation to a major program being audited may occur and not be detected
within a timely period by employee in the normal course of performing their assigned functions. We
noted no matters involving the internal control over compliance and its operation that we consider to be
material weaknesses.
This report is intended for the information of the City Council, management, and awarding agencies.
However, this report is a matter of public record and its distribution is not limited.
4 "'�/Z"(Zo - Qt ID /U
Mount Dora, Florida
February 19 1999
136
CITY OF CLERMONT, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 1998
Summary of Audit Results:
1. The auditor's report expresses an unqualified opinion on the general purpose financial
statements of the City of Clermont, Florida.
2. No reportable conditions were disclosed during the audit.
3. No instances of noncompliance material to the financial statements of the City of Clermont,
Florida were disclosed during the audit.
4. No reportable conditions were disclosed during the audit of the major program.
5. The auditor's report on compliance for the major award program for the City of Clermont,
Florida expresses an unqualified opinion on the major program.
6. No audit findings relative to the major award program for the City of Clermont, Florida are
reported in this Schedule.
7. The program tested as a major program is Community Development Block Grant awarded by
the State of Florida's Department of Community Affairs.
8. The threshold for distinguishing Type A and B programs was $300,000.
9. The City of Clermont, Florida was determined to be a low risk auditee.
137
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138
GREENLEE
KURRAS
RICE &
BROWN, PA
CERTIFIED PUBLIC
ACCOUNTANTS
CLERMONT:
MOUNT DORA:
MANAGEMENT LETTER
The Honorable Mayor and City Council
City of Clermont, Florida
Herbert John Greenlee, Jr., C.P.A.
Jerry D. Brown, C.P.A.
John S. Rice, C.P.A.
Patricia A. Sykes -Amos, C.P.A.
C. L. (Chip) Garner, C.P.A.
Dorothy A. Kurras, C.P.A.
John A. Powers, C.P.A.
Mark A. Farner, C.P.A.
This report contains our comments as required by Chapter 10.554(1)(e), Rules of the Auditor General,
Local Governmental Entity Audits, for the City of Clermont, Florida, for the year ended September 30,
1998.
Subparagraph (1) refers to whether inaccuracies or irregularities reported in the preceding annual
financial audit have been corrected. There were no such findings in the preceding annual financial audit.
Subparagraph (2) refers to whether recommendations made in the preceding annual audit have been
followed. There were no recommendations offered in the prior audit.
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 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 36, 1998, the financial report was in agreement in all respects.
Subparagraph (6) refers to recommendations to improve the City's accounting procedures and internal
controls. We continue to offer no recommendations.
Subparagraph (7) refers to violations of laws, rules and regulations discovered within the scope of the
financial audit. We noted no violations.
Subparagraph (8) refers to illegal or improper expenditures discovered within the scope of the financial
audit. We did not discover any illegal or improper expenditures.
Subparagraph (9)(a)(b) and (c) 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's accounts for the year ended September 30, 1998.
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
605 Montrose Street 627 N. Donnelly Street
Post Office Box 120400 • Clermont, FL 34712-0400 Post Office Box 8 • Mount Dora, FL 32756
Telephone: (352) 394-3256 139 Telephone: (352) 383-6300
Subparagraph (10) requires disclosure of the official title and legal authority for the entity. The City of
Clermont was incorporated December 1916, under the laws of the State of Florida and operates under
the council-manager form of government under its charter adopted pursuant to H.B. 2223 Chapter 67-
1217, Special Acts 1967, of the State of Florida.
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 February 19, 1999.
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.
pQu��z� �2�� X?Zrc� t,cPet.v, 1)4
Clermont, Florida
February 19, 1999
140