The URL can be used to link to this page

Comprehensive Annual Financial Report - 2000-2001Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2001 City of Clermont, Florida CITY OF CLERMONT, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2001 Prepared by: Finance Department Joseph E. Van Zile Finance Director � .T �'t_': 1. u " �" :s CITY OF CLERMONT, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2001 TABLE OF CONTENTS INTRODUCTORY SECTION Letterof Transmittal....................................................................................... A-1 OrganizationalChart.................................................................................... A-14 Listingof City Officials.................................................................................. A-15 Certificate of Achievement........................................................................... A-16 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT Independent Auditor's Report.............................................................. B-1 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet — All Fund Types and Account Groups....... B-2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances — All Governmental Fund Types and Expendable Trust Fund ................................................ B-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual — General, Budgeted Special Revenue and Debt Service Funds .................... B-7 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances —All Proprietary Fund Types and Nonexpendable Trust Funds ............................... B-9 Combined Statement of Changes in Plan Net Assets — PensionTrust Fund...................................................................... B-10 Combined Statement of Cash Flows — All Proprietary Fund Types and Nonexpendable Trust Funds ...................................... B-11 Notes to Financial Statements........................................................... B-13 TABLE OF CONTENTS FINANCIAL SECTION CONTINUED COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS General Fund: Comparative Balance Sheet.............................................................. B-40 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual .............................................. B-41 Schedule of Revenues — Budget and Actual ..................................... B-42 Schedule of Expenditures — Budget and Actual ................................ B-43 Special Revenue Funds: Combining Balance Sheet................................................................. B-46 Combining Statement of Revenues, Expenditures and Changes in Fund Balance............................................................ B-47 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Infrastructure Fund............ B-48 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Impact Fee Fund ............... B-49 Sales Tax Revenue Bond Sinking Fund: Comparative Balance Sheet.............................................................. B-50 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual .............................................. B-51 Building Construction Fund: Comparative Balance Sheet.............................................................. B-52 Schedule of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual .............................................. B-53 11 TABLE OF CONTENTS FINANCIAL SECTION CONTINUED COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS CONTINUED Enterprise Funds: Combining Balance Sheet................................................................. B-54 Combining Statement of Revenues, Expenses and Changes in RetainedEarnings........................................................................ B-56 Combining Statement of Cash Flows ................................................ B-57 Group Self Insurance Fund: Comparative Balance Sheet.............................................................. B-59 Comparative Statement of Revenues, Expenses and Changes in RetainedEarnings........................................................................ B-60 Comparative Statement of Cash Flows ............................................. B-61 Trust Funds: Combining Balance Sheet — Fiduciary Fund Types ........................... B-62 Comparative Balance Sheet — Expendable Trust Fund — Community Redevelopment Fund ................................................ B-63 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance — Expendable Trust Fund — Community Redevelopment Fund ................................................ B-64 Comparative Statement of Plan Net Assets — PensionTrust Funds.................................................................... B-65 Combining Statement of Changes in Plan Net Assets — PensionTrust Funds.................................................................... B-66 Comparative Balance Sheet — Nonexpendable Trust Fund — Cemetery Perpetual Care Fund ................................................... B-67 iii TABLE OF CONTENTS FINANCIAL SECTION CONTINUED COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS CONTINUED Comparative Statement of Revenues, Expenses and Changes in Fund Balance — Nonexpendable Trust Fund — Cemetery Perpetual Care Fund ................................................... B-68 Statement of Cash Flows - Nonexpendable Trust Fund — Cemetery Perpetual Care Fund ..................::............................... B-69 Account Groups: Schedule of General Fixed Assets by Sources .................................. B-70 Schedule of General Fixed Assets by Function ................................. B-71 Schedule of Changes in General Fixed Assets by Function .............. B-72 Schedule of General Long -Term Debt ............................................... B-73 STATISTICAL SECTION Comments on the Statistical Section.............................................................. C-1 Expenditures by Function — Last Ten Fiscal Years ........................................ C-2 Revenue by Source Last Ten Fiscal Years ................................................. C-4 Property Tax Levies, Tax Collections and Assessed Valuations — Last Ten Fiscal Years........................................................... C-6 Property Tax Rates — Direct and All Overlapping Governments — LastTen Fiscal Years................:.............................................................. C-8 Water and Sewer Customer Data — Last Ten Fiscal Years .......................... C-10 iv TABLE OF CONTENTS STATISTICAL SECTION CONTINUED Utility Revenue Bond Coverage — All Utility Revenue Bonds — Last Ten Fiscal Years............................................................................. C-11 Demographic Statistics — Last Ten Fiscal Years .......................................... C-13 Property Value, Construction and Bank Deposits — Last Ten Fiscal Years............................................................................. C-14 Principal Taxpayers ............................. LargestEmployers....................................................................................... C-17 Schedule of Insurance Coverage................................................................. C-18 Miscellaneous Statistical Data...................................................................... C-20 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........................................................ D-1 ManagementLetter........................................................................................ D-3 INTRODUCTORY SECTION This section contains the letter of transmittal, organizational chart, listing of city officials and certificate of achievement. CITY OF CLERMONT Office of the City Manager March 15, 2002 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, 2001, 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 11.29 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, Animal Control, 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, Debt. Service, Capital Projects and certain Trust and Agency Funds are maintained on a modified accrual basis with revenues being recognized when they become measurable and available, while expenditures are recorded at the time liabilities are incurred. Accounting records for the Enterprise, Internal Service and certain Trust and Agency Funds are maintained on a full accrual basis. In developing and modifying the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute assurance regarding: 1. The safeguarding of assets against loss from unauthorized use or disposition; and 2. The reliability of financial records for preparing financial statements and maintaining accountability for assets. A-2 The concept of reasonable assurance recognizes that: 1. The cost of control should not exceed the benefits likely to be derived; and 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 A: Introduction Section This section contains the Letter of Transmittal and other such material as may be useful in understanding the reporting entity. Section B: 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 display financial data for the City as a whole and Combining Statements by Fund Type, which present data for homogeneous funds. Section C: Statistical Section This section presents detailed historical information that will be beneficial to the reader in understanding the City's growth and its future potential. Section D: Other Reports This section contains other Independent Auditor's reports. A-3 GENERAL FUND The General Fund encompasses the general government functions of the City and all other functions not accounted for in other separate funds. Unreserved, undesignated fund balance increased 45.1% from $1,460,924 to $2,119,794. Fund balance is the amount of resources available for expenditure in future years. The increase in fund balance is primarily due to actual revenues exceeding anticipated revenues. Revenues and other financing sources of the current fiscal year as compared with those of the previous year are presented as follows: 2000-2001 Amount % o of total 1999-2000 Amount % of total % Inc./Dec. Over 1999-00 Taxes $4,165,211 71.5% $3,297,792 51.7% 26.3 % Licenses and Permits 211,101 3.6 188,517 3.0 12.0 Intergovernmental 749,028 12.8 959,751 15.0 (22.0) Charges for Services 36,613 0.6 60,148 0.9 (39.1) Fines and Forfeitures 145,564 2.5 174,044 2.7 (16.4) Miscellaneous Revenues 273,783 4.7 339,369 5.3 (19.3) Transfers In 249,200 4.3 11065,347 16.7 (76.6) Debt Proceeds 0 0.0 300,000 4.7 (100.0) Total $5,830,500 100% $6,384,968 100% (8.7% General Fund revenues decreased from $6,384,968 to $5,830,500 primarily due to the decreases in Transfers In and Debt Proceeds. Transfers In decreased primarily due to discontinuing the budgetary practice of accounting for capital outlay projects in the General Fund and transferring funding sources from other funds. These projects are now budgeted and paid directly from their respective funds. Debt Proceeds in the 1999-00 fiscal year represented a one-time loan for the purchase of a fire truck. Excluding Transfers In and Debt Proceeds, total General Fund revenues actually increased 11.2%. Taxes increased primarily due to an increase in franchise fees, utility service taxes and ad valorem revenues. Tax revenue increases were primarily the result of growth, as is documented in Table 8 of the Statistical Section of this report. Ad valorem tax revenues also increased due to a .25 mil increase in the City's millage rate from 3.479 to 3.729. The millage increase was necessary in order to provide funding for the full-time staffing of Fire Station No. 2, which opened in March 2001. Despite the millage increase, Clermont continues to enjoy being one of the lowest taxed communities in Central Florida. Intergovernmental revenue decreased 22% primarily due to the receipt of one-time grants in the 1999-00 fiscal year. A-4 While other revenues may have decreased, the amounts were not significant and did not reflect a change in the City's revenue policy. Expenditures and other financing uses of the current fiscal year as compared with those of the previous year are as follows: 2000-2001 Amount % of total 1999-2000 Amount % of total % Inc./Dec. Over 1999-00 General Government $910,270 17.9% $883,788 15.5% 3.0% Public Safety 2,334,561 46.1 2,455,502 43.1 (4.9) Physical Environment 211,801 4.2 134,486 2.4 57.5 Transportation 453,845 8.9 465,752 8.2 (2.6) Economic Environment 27,181 0.5 25,586 0.4 6.2 Human Services 19,573 0.4 24,914 0.4 (21.4) Culture & Recreation 1,117,589 22.0 1,713,375 30.0 (34.8) Total $5,074,820 100% $5,703,403 100% (11.0%) General Fund expenditures decreased 11.0% from $5,703,403 to $5,074,820 primarily due to a significant decrease in the Culture & Recreation category. Culture and Recreation expenditures decreased due to the budgeting of fiscal year 2000-01 recreation capital outlay projects in the recreation impact fee fund, instead of the General Fund. 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 countywide one -cent increase in the States Sales Tax until December 2002, may only be expended on items pertaining to the construction of fixed capital outlay. Infrastructure surtax funds were used in the fiscal year 2000-01 for various construction related expenditures for sidewalk and street projects including downtown parking and annual debt service associated with the 1989 Sales Tax Revenue Bond issue. 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 development to pay its proportionate share of the capital costs necessary to accommodate new development impacts on police, fire and recreational services. A-5 Comparative impact fee amounts for the last three fiscal years are as follows: 2000-2001 1999-2000 1998-1999 Police Impact Fees $222,503 $201,944 $37,286 Fire Impact Fees $218,862 $237,720 $46,939 Recreation Impact Fees $503,454 $556,481 $156,187 Total Im act Fees $944,819 $996,145 $240,412 Total impact fees decreased from $996,145 to $944,819. The decrease is due to a one- time impact fee payment of $200,454 ($17,457 — Police, $45,597 — Fire, $137,400 — Recreation) for a new apartment complex in the 1999-00 fiscal year. Excluding this payment, total impact fees actually increased 18.7%. Impact fees were used to purchase various equipment and vehicles. In addition, recreation impact fees were the primary funding source in the development of Phase I of Hancock Park, a multipurpose recreation complex and the purchase of land for a future community center. The Hancock Park Recreation Complex was completed during the 2000-01 fiscal year at a total cost of $1,095,353. Police and Fire impact fee credits were also provided to a development company in exchange for the construction of Fire Station No. 2. The fire station was completed during the 2000-01 fiscal year at a total cost of $510,992. BLOCK GRANT FUND The City received a $600,000 Community Development Block Grant from the U.S. Department of Housing and Urban Development in fiscal year 1995-96. As of September 30, 2001 there is a mortgage receivable balance of $109,937. This receivable is amortized over a 5-year period from when the mortgage was signed. The receivable will be fully amortized by the end of fiscal year 2002-03. The City received a $600,000 Community Development Block Grant from the State of Florida during the 2000-01 fiscal year. This grant is to be used for the Downtown Streetscape project. During the 2000-01 fiscal year, the City expended $75,142 in engineering fees related to the project. 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. A-6 CAPITAL PROJECT FUND The Building Construction Fund is maintained to account for the financial resources and related expenditures pertaining to the construction of Fire Station No. 1 and a new City Hall. Fire Station No. 1 was completed during the 2000-01 fiscal year at a total cost of $1,015,602. City Hall expenditures consisted of a space needs analysis, architectural design services and preparation of construction documents ($378,048). Financing for the projects is provided through a $2,000,000 Line of Credit financing arrangement. . .... ....... 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: 2000-2001 1999-2000 1998-1999. Operating Revenues $2,654,416 $2,124,341 $1,640,642 Operating Expenses $1,270,542 $1,367,508 $1,232,089 Operating eratin Income $1,383,874 $756,833 $408,553 Net Working Capital $2,366,163 $1,417,209 $879,491 Debt Service Coverage (Combined Water/Sewer) 3.05% 2.36% 1.69% Operating revenues increased 25.0% and operating expenses decreased 7.1% from 1999- 00 to 2000-01. The increase in revenue is primarily due to servicing the expanding East Water System customer base. In addition, the City adopted a tiered water rate structure effective June 1, 2001 in order to encourage water conservation. A tiered water rate structure provides for a higher cost per gallon as consumption increases. The east water system customer base has increased from 2,980 customers in September 2000 to 3,952 as of September 2001. 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: 2000-2001 1999-2000 1998-1.999 Operating Revenues $1,562,488 $1,323,239 $1,162,550 Operating Expenses $1,568,320 $1,337,598 $1,056,058 Operating Income (Loss) ($5,832) ($14,359) $106,492 Net Working Capital ($709,680) $427,105 $541,091 Debt Service Coverage (Combined Water/Sewer) 3.05% 2.36% 1.69% Operating revenues and expenses increased 18.1% and 17.3% respectively from 1999-00 to 2000-01 primarily due to servicing the expanding East Sewer System customer base. The east sewer system customer base has increased from 1,486 customers in September 2000 to 2,443 as of September 2001. Net Working Capital decreased due to a large construction contract payable at year-end for the East Wastewater Treatment Plant expansion. Excluding this contract payable, Net Working Capital was $417,593. 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: 2000-2001 1999-2000 ` 1998-1999 Operatin Revenues $1,144,053 $889,531 $727,273 Operatin Ex enses $1,091,335 $961,246 $851,159 O eratin Income Loss $52,718 ($71,715) ($123,886) Net Working Capital $42,937 $112,775 $142,806 Operating revenues increased primarily due to a rate adjustment that went into effect on October 1, 2000. The adjustment increased the monthly charge for sanitation service from $20.00 to $21.50. The rate adjustment was necessary in order to provide funding for major capital equipment purchases. A-8 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: 2000-2001 1999-2000 1998-1999 Operating Revenues $396,747 $183,271 $156,864 Operating Expenses $168,302 $133,057 $130,569 Operating Income $228,445 $50,214 $26,295 Net Working Capital $365,436 $123,249 $135,721 Operating revenues increased primarily due to a rate adjustment that went into .effect on October 1, 2000. The adjustment increased the monthly charge for stormwater service from $3.00 to $5.00. The rate adjustment was necessary in order to provide funding for future major stormwater capital projects. 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 coverage. The modified Self -Insurance Program is responsible for health and dental claims up to $40,000 per employee. Reinsurance provides coverage in excess of the City's limits up to $1,000,000 per employee. The Group Self -Insurance Fund had a negative retained earnings balance of $125,771 as of September 30, 2001. The negative retained earnings was primarily due to paid medical claims exceeding premiums collected. As a result, the City approved a premium adjustment and increased individual and family deductibles during the 2001-02 fiscal year. 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 General Fund to defray the cost of cemetery operation and maintenance. A-9 The Community Redevelopment Fund accounts for funds administered by the Downtown Clermont Redevelopment Agency. The agency is authorized to use the funds to finance community redevelopment projects within the downtown area. In fiscal year 2000-01 a contribution was made to the Community Development Block Grant Fund to provide matching funds for the Downtown Streetscape project. 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, 2001, the general fixed assets of the City totaled $17,527,966. 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 that 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, the Florida State Board of Administration Investment Pool, and in United States Treasury securities. 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 the invested funds. Access to the invested funds is on a daily basis. A-10 DEBT ADMINISTRATION The City has the following long-term debt issues outstanding on September 30, 2001 ➢ A long-term note issued in 1980 to finance the purchase of the Library Building. ➢ A Sales Tax Revenue Bond 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 Capital Improvement Revenue Note issued in 1998 to provide funding for the purchase of computer equipment and a fire truck. ➢ A Capital Improvement Revenue Note issued in 1999 to provide funding for the purchase of a fire truck. ➢ A seller -financed mortgage that was obtained for the purchase of land for the Downtown Redevelopment District. ➢ A Line of Credit issued in 2000 to provide funding for the construction of Fire Station No. 1 and for the design of the new City Hall facility. ➢ A Water and Sewer Revenue and Refunding Bond issued in 2000 to defease its outstanding 1993 City of Arcadia Dedicated Pool Local Government Revenue Bonds, refinance the City's outstanding 1996 Bond Anticipation Note, and finance a portion of the City's sewer treatment plant expansion and various other capital improvements to the City's Water and Sewer System. 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 the City services by the recent growth of the City requires careful short and long term planning. The City's tax base is expanding with the development providing additional revenues. Along with this additional development comes increased demands on all City services. A-11 The revenue stream created by growth is usually several months behind the demand for services, which places additional pressures on all departments to have the ability to continue to provide the necessary level of service within budget constraints. Fortunately, the City currently enjoys one of the area's lowest ad valorem millage rates and charges for service 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 and related growth issues 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 of Clermont, Florida, for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2000. 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 an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Clermont has received a Certificate of Achievement for the last twelve 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. A-12 ACKNOWLEDGEMENTS The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the staffs in the City Manager's office, Planning Department and Finance Department. A special note of appreciation is due Lisa Strickland, Accountant for her hard work and dedicated efforts in the preparation of this report. 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, Wa Saunders City Manager 9J J:os-e-phi E. Va Zile Finance Director A-13 City of Clermont, Florida Organizational Chart Citizens City Attorney i --� Clermont City Council 1 Committees i City Manager Folh - Fire Public Services Finance Planning Recreation Engineering CID Inspections Transportation Financial Reporting Occupational Licenses Programs Inspections Traffic Division Dive Team Parks Utility Billing Permitting Road Patrol Public Fire Water Treatment Accounts Payable Code Enforcement Education and Distribution Communications Sewer Collection Personnel/Payroll Animal Control and Treatment Records Stormwater Risk Management Zoning Drainage Sanitation Budgeting Mapping Water System Improvements Wastewater System Improvements Stormwater Management A-14 Mayor Mayor Pro-Tem Council Member Council Member Council Member CITY OF CLERMONT, FLORIDA LISTING OF CITY OFFICIALS ELECTED OFFICIALS Harold S. Turville, Jr. Jeff Biddle Marilyn MacLauchlin Keith Mullins Elaine Renick APPOINTED OFFICIALS City Manager Wayne Saunders City Attorney Robert D. Guthrie Finance Director Joseph E. Van Zile Public Services Director Preston Davis Chief of Police Randy Story Fire Chief Carle Bishop City Engineer Tamara Richardson Planning Director Barry Brown A-15 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Clermont, Florida For its Comprehensive Annual Financial Deport for the Fiscal Year Ended September 30, 2000 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. �PNGE OfF/C� F� OF UNITED STATES y AND H CAN Pr sident CORPORATION a o �J' CHICA a Executive Director A-16 FINANCIAL SECTION This section contains the following subsections: INDEPENDENT AUDITOR'S REPORT GENERAL PURPOSE FINANCIAL STATEMENTS COMBINING AND INDIVIDUAL FUN❑ AND ACCOUNT GROUP STATEMENTS AUDITOR'S RT CLERMONTOFFICE GREENLEE Jerry D. Brown, C.P.A. � KURRAS Herbert John Greenlee, Jr., C.P.A. RICE & Suzanne M. Wolfe, C.P.A. BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and City Council City of Clermont, Florida MOUNT DORA OFFICE 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. Keire Rice Hosley, C.P.A. David S. McDonald, 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, 2001, 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 auditing standards generally accepted in the United States of America 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, 2001, 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 accounting principles generally accepted in the United States of America. 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. In accordance with GovernmentAuditing Standards, we have also issued our report dated February 19, 2002, on our consideration of the City of Clermont, Florida's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants . 10 /• n. Clermont, Florida January 30, 2002 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 605 Montrose Street B-1 627 N. Donnelly Street P.O. Box 120400 • Clermont, FL 34712-0400 P.O. Box 8 • Mount Dora, FL 32756-0008 (352) 394-3256 • Fax (352) 394-6910 (352) 383-6300 • Fax (352) 383-6356 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. '�S• - Ir ..tom_ •4 CITY OF CLERMONT, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2001 ASSETS AND OTHER DEBITS Assets: Cash and equivalents Investments Receivables: Accounts Interest Other Interfund receivables Due from other governments Prepaid items Inventory Restricted Assets: Cash and equivalents Investments Mortgage receivables Deferred charges Developer credits Land Buildings Water system Sewer system Improvements other than buildings Machinery and equipment Construction in progress 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 GOVERNMENTAL FUND TYPES GENERAL 92,932 $ 2,065,098 77,533 23,968 65,956 15,549 47,888 13,954 SPECIAL DEBT CAPITAL REVENUE SERVICE PROJECT 296,904 $ 79,152 $ 845,663 ... 669,554 2,877 61,640 ... ... 2,667 109,937 ... ... $ 2,402,878 $ 1,314,144 $ 79,152 $ 675,098 continues The notes to the financial statements are an integral part of this statement. B-2 FIDUCIARY PROPRIETARY FUND TYPES FUND TYPE ACCOUNT GROUPS TOTALS (MEMORANDUM ONLY) GENERAL GENERAL INTERNAL FIXED LONG-TERM ENTERPRISE SERVICE TRUST ASSETS DEBT 2001 2000 $ 683,474 $ $ 26,391 $ $ $ 1,178,853 $ 1,506,476 2,362,755 5,865,460 ... ... 11,808,530 10,659,776 508,299 ... 588,709 488,443 75,872 ... 75,872 4,348 9,555 ... 33,523 35,743 16,599 55,067 ... 137,622 63,492 ... 77,189 216,998 33,405 ... 83,960 10,461 39,111 ... 53,065 51,075 1,212,502 ... 1,212,502 1,638,668 15,870,767 15,870,767 5,774,744 ... 109,937 210,006 390,261 ... 390,261 173,792 ... ... 78,892 1,464,129 ... ... 2,070,991 ... 3,535,120 2,999,940 ... 4,086,227 ... 4086,227 3,564,285 8,761,981 ... ... ... 8:761,981 8,628,853 12,935,556 ... ... ... 12,935,556 12,810,150 558,152 7,792,936 8,351,088 7,194,968 1,928,099 3,577,812 ... 5,505,911 4,797,169 2,367,223 ... ... ... 2,367,223 ... (7,919,960) ... (7,919,960) (7,247,537) 75,000 75,000 70,000 2,910,326 2,910,326 3,238,540 $ 41,297,780 $ $ 5,946,918 $ 17,527,966 $ 2,985,326 $ 72,229,262 $ 56,969,282 continued B-3 CITY OF CLERMONT, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2001 GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL LIABILITIES.EQUITY AND OTHER CREDITS GENERAL REVENUE SERVICE PROJECTS Liabilities: Accounts payable $ 62,092 $ 101,694 $ $ Other accruals 64,746 Contracts payable ... ... 5,900 Interest payable 2,116 ... Payable From Restricted Assets: ... Deposits ... Accrued interest ... Revenue bonds ... ... ... Interfund payables 33,352 ... Deferred developer credits ... 309,585 Deferred revenue 23,968 109,937 ... Revenue bonds payable ... ... ... Notes payable ... ... ... ... Total Liabilities 186,274 521,216 5,900 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 30,330 Reserved for inventory 13,954 Reserved for prepaids 47,888 Reserved for downtown development Reserved for cemetery care Reserved for debt service principal ... ... 75,000 ... Reserved for debt service interest ... ... 4,152 ... Reserved for employees' retirement systems ... ... Unreserved, undesignated 2,119,794 792,928 669,198 Total Equity and Other Credits 2,216,604 792,928 79,152 669,198 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 2,402,878 $ 1,314,144 $ 79,152 $ 675,098 The notes to the financial statements are an integral part of this statement. continue B-4 FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE ACCOUNT GROUPS (MEMORANDUM ONLY) GENERAL GENERAL INTERNAL FIXED LONG-TERM ENTERPRISE SERVICE TRUST ASSETS DEBT 2001 2000 $ 211,036 $ 59,815 $ $ ... $ $ 434,637 $ 606,885 70,559 ... ... ... 135,305 106,934 1,344,305 ... ... ... 1,350,205 194,634 2,116 8,509 109,549 ... ... ... 109,549 94,751 310,709 ... ... ... 310,709 180,176 ... ... ... 190,000 38,314 65,956 137,622 63,492 ... ... 309,585 ... ... ... 133,905 236,670 17,203,081 ... ... 355,000 17,558,081 10,981,817 2,630,326 2,630,326 2,743,540 19,287,553 125,771 2,985,326 23,112,040 15,407,408 15,029,230 ... ... 15,029,230 11,083,291 17,527,966 ... 17,527,966 14,873,151 5,907,779 ... ... 5,907,779 4,156,509 1,073,218 (125,771) 947,447 1,383,452 ... ... 4,638 4,638 ... . , , ... 30,330 29,217 13,954 17,572 47,888 2,128 ... ... ... ... 1,667 ... ... 350,700 ... ... 350,700 326,050 .. , . . ... ... 75,000 70,000 ... , , , , , , ... 4,152 13,170 ... 5,596,218 ... 5,596,218 5,816,953 . , . , . , ... ... 3,581,920 3,784,076 22,010,227 (125,771) 5,946,918 17,527,966 49,117,222 41,561,874 $ 41,297,780 $ ... $ 5,946,918 $ 17,527,966 $ 2,985,326 $ 72,229,262 $ 56,969,282 B-5 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 Debt service Debt proceeds 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 CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND FOR THE YEAR ENDED SEPTEMBER 30, 2001 FIDUCIARY TOTALS GOVERNMENTAL FUND TYPES FUND TYPE (MEMORANDUM ONLY) EXPENDABLE SPECIAL DEBT CAPITAL TRUST GENERAL REVENUE SERVICE PROJECTS FUND 2001 2000 $ 4,165,211 $ 708,636 $ $ $ 57,557 $ 4,931,404 $ 3,924,268 211,101 ... ... ... 211,101 188,517 749,028 181,000 ... ... 930,028 959,751 36,613 ... ... ... 36,613 60,148 145,564 ... ... ... ... 145,564 174,044 273,783 1,063,580 5,808 55,957 1,500 1,400,628 1,408,032 5,591,300 1,953,216 5,808 55,957 59,057 7,655,338 6,714,760 910,270 ... ... 188,499 ... 1,098,769 942,498 2,334,561 729,816 ... 284,971 ... 3,349,348 3,049,106 211,801 ... ... ... ... 211,801 134,486 453,845 185,935 ... 27,000 666,780 625,503 27,181 75,142 ... 20,000 122,323 45,586 19,573 19,573 24,914 1,117,589 1,125,144 ... ... .._ 2,242,733 1,733,423 ... 47,239 210,000 257,238 200,000 589216 41,010 99,226 54,060 5,074,820 2,221,491 251,010 473,470 47,000 8,067,791 6,809,576 506,480 (268,275) (245,202) (417,513) 12,057 (412,453) (94,816) 249,200 60,888 241,184 ... ... 551,272 1,327,615 ... (288,348) ... ... (13,724) (302,072) (1,022,210) . . . ... ... (1,333) ... (1,333) ... ... ... ... 2,390,000 249,200 (227,460) 241,184 (1,333) (13,724) 247,867 2,695,405 755,680 (495,735) (4,018) (418,846) (1,667) (164,586) 2,600,589 1,460,924 1,288,663 83,170 1,088,044 1,667 3,922,468 1,321,879 $ 2,216,604 $ 792,928 $ 79,152 $ 669,198 $ $3,757,882 $ 3,922,468 The notes to the financial statements are an integral part of this statement. B-6 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, 2001 GENERALFUND VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) Revenues: Taxes $ 3,729,513 $ 4,165,211 $ 435,698 Licenses and permits 142,000 211,101 69,101 Intergovernmental revenues 699,500 749,028 49,528 Charges for services 367,805 349,018 (18,787) Fines and forfeitures 145,600 145,564 (36) Miscellaneous 136,700 273,783 137,083 Total Revenues 5,221,118 5,893,705 672,587 Expenditures: Current: General government 1,280,769 1,216,427 64,342 Public safety 2,325,398 2,334,561 (9,163) Physical environment 213,374 218,049 (4,675) Transportation 491,710 453,845 37,865 Economic environment 22,335 27,181 (4,846) Human services 25,380 19,573 5,807 Culture and recreation 1,135,609 1,117,589 18,020 Debt service Total Expenditures 5,494,575 5,387,225 107,350 Excess (Deficiency) of Revenues Over (Under) Expenditures (273,457) 506,480 779,937 Other Financing Sources (Uses) Operating transfers in 217,122 249,200 32,078 Operating transfers out • • . • • • Debt proceeds Total Other Financing Sources (Uses) 217,122 249,200 32,078 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (56,335) 755,680 812,015 Fund Balances - October 1 1,460,924 1,460,924 ... FUND BALANCES - SEPTEMBER 30 $ 1,404,589 $ 2,216,604 $ 812,015 (continued) The notes to the financial statements are an integral part of this statement. B-7 SPECIAL REVENUE FUNDS DEBT SERVICE FUND VARIANCE VARIANCE FAVORABLE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE) $ 680,350 $ 708,636 $ 28,286 $ $ $ 167,000 167,000 429,350 1,063,580 634,230 4,000 5,808 1,808 1,109,700 1,939,216 829,516 4,000 5,808 1,808 15,000 ... 15,000 ... 195,331 729,816 (534,485) 200,000 185,935 14,065 ... 380,118 1,125,144 (745,026) ... 113,321 105,454 7,867 250,260 251,010 (750) _ 903,770 2,146,349 (1,242,579) 250,260 251,010 (750) 205,930 (207,133) (413,063) (246,260) (245,202) 1,058 ... 246,260 241,184 (5,076) (246,260) (288,348) (42,088) ... ••• •-• (246,260) (288,348) (42,088) 246,260 241,184 _ (5,076) (40,330) (495,481) (455,151) (4,018) (4,018) 1,288,409 1,288,409 83,170 83,170 $ 1,248,079 $ 792,928. $ (455,151) $ 83,170 $ 79,152 $ (4,018) B-8 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, 2001 Operating Revenues: Charges for services Sale - cemetery lots Miscellaneous 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 Change in fair value Total Nonoperating Revenues (Expenses) Income (Loss) Before Operating Transfers FIDUCIARY TOTALS PROPRIETARY RJM TYPES FUND TYPE (MEMORANDUMS ONLY) INTERNAL NONEXPENDABLE ENTERPRISE SERVICE TRUST 2001 2000 $ 5,534,855 $ 611,896 $ ... $ 6,146,751 $ 4,930,017 ... ... 24,650 24,650 17,725 222,849 ... ... 222,849 10,327 1,620 1,620 47,607 5,757,704 613,516 24,650 6,395,870. 5,005,676 1,352,129 394,762 ... 409,204 ... 312,405 ... 276,042 ... 672,423 469,826 ... 62,731 103,766 115,844 ... 30,100 ... 3,033 ... ... 29,943 568,652 4,098,499 702,361 1,659,205 (88,845) 883,020 297 (973,983) ... 1,845 ... 82,926 (6,192) 297 1,653,013 (88,548) Operating transfers (out) (249,200) Net Income (Loss) 1,403,813 (88,548) Retained Eamings/Fund Balances - October 1 5,577,184 (37,223) RETAINED EARNINGS/FUND BALANCES - SEPTEMBER 30 $ 6,980,997 $ (125,771) The notes to the financial statements are an integral part of this statement. 1,352,129 1,178,436 ... 394,762 367,586 ... 409,204 299,285 ... 312,405 368,031 276,042 220,754 ... 672,423 678,301 ... 469,826 318,900 ... 166,497 116,160 115,844 252,660 ... 30,100 53,076 ... 3,033 5,550 ... 29,943 23,587 568,652 467,034 4,800,860 4,349,360 24,650 1,595,010 656,316 ... 883,317 398,029 ... (973,983) (587,297) ... 1,845 3,447 82,926 24,242 (5,895) (161,579) 24,650 1,589,115 494,737 (249,200) (290,444) 24,650 1,339,915 204,293 326,050 5,866,011 5,661,718 $ 350,700 $ 7.205.926 $ 5,866,011 B-9 CITY OF CLERMONT, FLORIDA PENSION TRUST FUND COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEARS ENDED SEPTEMBER 30, 2001 AND 2000 Additions Contributions: Employer Plan members State Total Contributions Investment Income: Net investment income including appreciation in fair value Less: Investment expense Net investment income (loss) Total Additions Deductions Benefits Total Deductions Net increase (decrease) Net assets held in trust for pension benefits Beginning of year End of Year 2001 (Memorandum Only) 2000 $ 189,244 $ 159,671 12,105 10,329 272,174 15,998 473,523 185,998 (400,513) 782,002 (426,779) 759,129 46,744 945,127 267,479 204,609 (220,735) 7405518 5,816,953 5,076,435 $ 5,596,218 $ 5,816,953 The notes to the financial statements are an integral part of this statement. CITY OF CLERMONT, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2001 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: Short term interfund advance Operating transfers out Grants Net Cash Provided (Used) By NonCapital Financing Activities Cash Flows From Capital and Related Financing Activities: Acquisition and construction of capital assets New debt 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 Reconciliation of cash and cash equivalents to the balance sheet: Enterprise fund unrestricted cash Enterprise fund restricted cash Non -expendable trust cash FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE (MEMORANDUM ONLY) NON - INTERNAL EXPENDABLE ENTERPRISE SERVICE TRUST 2001 2000 $ 5,693,812 $ 613,516 $ 24,650 $ 6,331,978 $ 4,911,528 (2,251,976) (133,709) ... (2,385,685) (1,854,750) (1,339,137) ... ... (1,339,137) (1,187,648) (546,049) (546,049) (450,160) 2,102,699 (66,242) 24,650 2,061,107 1,418,970 ... 65,945 65,945 ... (249,200) ... .-. (249,200) (290,444) 1,845 1,845 6,588 (247,355) 65,945 (181,410) (283,856) (1,548,621) (1,548,621) (825,540) 16,769,534 ... 16,769,534 ... (10,433,025) ... ... (10,433,025) (180,000) (800,164) ... ... (800,164) (530,069) 3,945,939 3,945,939 3,809,891 7,933,663 810,821 (10,159,211) (370,204) $ 1,895,976 $ Noncash investing activities: Investments' unrealized gain increased by $82,926 as of September 30, 2001. The notes to the financial statements are an integral part of this statement. ... 7,933,663 2,274,282 297 ... 811,118 397,466 ... ... ... 69,749 (16,249) (10,986,281) (3,328,317) 297 (16,249) (10,175,163) (2,861,102) ... 8,401 (361,803) 548,294 17,990 2,284,170 1,735,876 $ 26,391 $ 1,922,367 $ 2,284,170 (continued) $ 683,474 1,212,502 26,391 $ 1,922,367 B-11 Reconcilation of Operating Income to Net Cash Provided (Used) by Operating Activieits: Operating Income (Loss) Ajustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Change in Assets and Liabilities: Decrease (Increase)in receivables Decrease (Increase) in prepaids Decrease (Increase) in inventory Increase (decrease) in deposits Increase (Decrease) in accrued expenses Increase (Decrease) in payables Total Adjustments NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE (MEMORANDUM ONLY) NON - INTERNAL EXPENDABLE ENTERPRISE SERVICE TRUST 2001 2000 $ 1,659,205 $ (88,845) $ 24,650 $ 1,595,010 $ 656,316 672,423 672,423 678,301 (78,690) (78,690) (99,441) (29,072) ... ... (29,072) 454 (5,608) (5,608) (7,407) 14,798 14,798 5,293 12,992 12,992 (9,212) (143,349) 22,603 (120,746) 194,666 443,494 22,603 466,097 762,654 $ 2,102,699 $ (66,242) $ 24,650 $ 2,061,107 $ 1,418,970 B-12 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. Description of the Reporting Entity - Generally accepted accounting principles require that these financial statements present the City (the primary government) and its component units. Component units generally are legally separate entities for which a primary government is financially accountable. Financial accountability ordinarily involves meeting both of the following criteria: the primary government is accountable for the potential component unit (i.e., the primary government appoints the voting majority of its board) and the primary government is able to impose its will upon the potential component unit, or there is a possibility that the potential component unit may provide specific financial benefits or impose specific financial burdens on the primary government. The component unit discussed in this note is included in the City's reporting entity because of the significance of its operational or financial relationship with the City. Based upon the application of these criteria, the following is a brief review of the potential component unit addressed in defining the City's reporting entity. Blended Component Unit: The City of Clermont Community Redevelopment Trust Fund The City of Clermont created the Downtown Redevelopment Agency in May of 1997. This is a dependent taxing district established in accordance with Chapter 163, Part III, Florida Statutes. Notification to affected taxing agency was done in compliance with Chapter 163.346, Part III, Florida Statutes. The incremental annual increase in tax over the base year will be used to fund projects designed to enhance and improve the described area. The City Council, being the duly elected governmental body for the designated area, passed Resolution 97-950, which established the City of Clermont as the Redevelopment Agency for the purpose of carrying out the community redevelopment programs and plans within the area. Through Ordinance 359-M the City established the Community Redevelopment Trust Fund to account for all transactions generated by this expendable trust fund. B-13 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS B. Fund Accounting - The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenue and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds and account groups of the City are as follows: Governmental Funds - 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. 4. Capital Projects -To account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Proprietary Funds - Enterprise Funds - To account for operations (a) that are financed and operated in a manner similar to private business enterprises -- where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body had decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. 2. Internal Service Fund - To account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost -reimbursement basis. WM CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Fiduciary Funds - 1. Trust Funds - To account for assets held by the City in a trustee capacity. Non - expendable and pension trust funds are accounted for in essentially the same manner as Proprietary Funds, since capital maintenance is critical. The expendable trust fund measurement focus is the same as Governmental Funds. 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 and expendable trust 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 and expendable trust funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i. e., when they become both measurable and available, ) "Measurable" means the amount ofthe 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 B-15 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. All major revenues, except property taxes and licenses, are considered measurable and available and, as such, susceptible to accrual. The accrual basis of accounting is utilized by proprietary fund types, pension trust funds and nonexpendable trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Encumbrance accounting is not used by the City. 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 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to October 1, the budget is legally enacted through passage of an ordinance. The legal level of budgetary control is the department level. Administrative control is maintained at the object level through integration with the accounting records. Appropriations lapse at the end of each fiscal year. In the general fund, the following departments had an excess of expenditures over appropriations: law enforcement ($36,343), economic development ($4,846) and physical environment ($4,675). Budgets are prepared on a basis consistent with accounting principles generally accepted in the United States of America (GAAP) for the infrastructure fund and the CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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 block grant, expendable trust fund, internal service and trust funds. Budget amounts for the general, infrastructure, impact fee 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, proprietary fund investments, and pension funds investments are reported at fair 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. 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. B-17 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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 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 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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 $40,000 per year in medical, dental, or prescription claims for each covered employee. The City purchases commercial insurance for claims in excess of coverage provided by the 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. 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 m CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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. Bond Discounts and Issuance Costs - Bond discounts and issuance costs are deferred and amortized over the term of the bonds using the effective rate and straight-line methods, respectively. Bond discounts are presented as a reduction of the face amount of the revenue bonds payable and issuance costs as other assets. 5. 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 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 Accountahility: A. Budget Revisions The following schedule summarizes budget revisions by Fund: Original Final Budget Revisions Budget General Fund $5,418,255 $ 76,320 $5,494,575 B. General Fund Budget/GAAP Reconciliation: Excess of revenues and other sources over expenditures and other uses (budgetary basis) $ 755,680 Adjustments: To reduce revenues for administrative service fees (312,405) To reduce expenditures for administrative service fees 312-405 Excess of revenues and other sources over expenditures and other uses (GAAP basis) $ 755.680 C. Special Revenue Funds Budget/GAAP Reconciliation: Excess of revenues and other financing sources over (under) expenditures and other financing uses (budgetary basis) $ (495,481) Adjustments: To record excess of revenues and other financing sources over expenditures and other financing uses for unbudgeted Block Grant Fund. (254) Excess of revenues and other financing sources over expenditures and other financing uses (GAAP basis) $ (495.73Q B-21 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) $ 1,629,690 $ 2,183,155 $1,091,335 $ 168,302 Less: Unbudgeted depreciation (265,938) (336,778) (24,447) (21,260) Add: Capital additions 383,321 2,317,210 175,558 16,837 Principal payments 55,100 134,900 ... ... Actual (Budget Basis) 1,802,173 4,298,487 1,242,446 163,879 Budget 5,804,998 12,091.023 1,223,667 351,180 Variance -favorable (unfavorable) $ 4,002,825 $ 7,792.536 S_(18,7791 $ 187,301 E. Deficit Fund Equity The Group Self Insurance Fund had a deficit retained earnings of ($125,771). The City is increasing the premium in order to provide operating income for future years. 3. Deposits and Investments: DEPOSITS. The Florida Security for Depositors Act identifies those financial institutions that have deposited the required collateral in the name of the treasurer of the State of Florida as qualified public depositories. The City only places deposits with qualified public depositories. Therefore, all City deposits are entirely insured by FDIC or Florida's Multiple Financial Institution Collateral Pool. B-22 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS INVESTMENTS State statutes authorizes investment in: a. The Local Government Surplus Funds Trust Fund, (commonly referred to as the SBA) administered by the Florida State Board of Administration or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01. b. Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency. c. Interest -bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02. d. Direct obligations of the U.S. Treasury. The State Board of Administration (Board) was established on June 21, 1928, pursuant to Chapter 14486, 1929, Laws of Florida. The Board was subsequently created as a constitutional body corporate on January 1, 1943, under the provisions of Senate Joint Resolution No. 324, 1941; approved by the electorate in November 1942. The Board is composed of the Governor, as Chairman, the State Treasurer, as Treasurer, and the State Comptroller, as Secretary, and provides the following services by law: (1) investment of funds of the Florida Retirement System (FRS); (2) administration of debt service funds; (3) investment of trust and agency funds; and (4) distribution of the "Second Gas Tax." The SBA 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 SBA. Additionally, the Office of the Auditor General performs the operational audit of the activities and investments of the State Board of Administration. The SBA 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. 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 B-23 U 5. CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS uninsured and unregistered investments held by the counterparty's agent in the City's name. Category 3 includes uninsured and unregistered investments held by a counterparty but not in the City's name. RISK CATEGORY 3: Repurchase Agreement (Securities held by bank in bank's name) USTN notes (held by broker) Investment in local government surplus funds trust Florida Municipal Pension Trust Fund Total Carrying Fair Value Value $ 2,323,704 $ 2,323,704 7,620,834 7,620,834 14, 517, 311 14, 517, 311 5,541,151 5,541,151 $30,003,000 $30,003,000 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, 2001, $89,431 of the original mortgage amounts was forgiven. Changes In General Fixed Assets: A summary of changes in general fixed assets is as follows: Balance - Balance - 9/30/00 Additions Deletions 9/30/01 Land $ 1,535,811 $ 535,180 $ $ 2,070,991 Buildings 3,564,285 521,942 4,086,227 Improvements other than buildings 6,653,653 1,139,283 ... 7,792,936 Machinery and equipment 3,119.402 458,410 3,577,812 Totals $ 14,873.151 $ 2,654,815 $ $ 17,527,966 MW CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 6. Changes in Proprietary Fund Fixed Assets: Balance - Balance - 9/30/00 Additions Deletions 9/30/01 Land $ 1,464,129 $ ... $ ... $ 1,464,129 Water system 8,628,853 133,128 ... 8,761,981 Sewer system 12,810,150 125,406 ... 12,935,556 Improvements other than buildings 541,315 16,837 ... 558,152 Equipment 1,677,767 250,332 ... 1,928,099 Construction in progress 2,367,223 2,367,223 Total Assets 25,122,214 2,892,926 ... 28,015,140 Less: Accumulated depreciation r 7,247.537 672,423 7,919,960 Net $ 17,874.677 $ 2,220,503 $ $ 20,095,180 7. Pension Funds: The City has three separate single employer defined benefit plans for general employees, sworn police officers, and 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 plans are paid from investment income. The plans issue neither a stand-alone financial report nor are included in the report of a public employee retirement system. DEFINED BENEFIT PENSION PLANS Membership in each of the defined benefit pension plans at September 30, 2001 was as follows: General Police Employees Officers Firefighters Retirees/beneficiaries currently receiving benefits 16 3 2 Vested terminated employees 0 0 2 Active employees: Fully vested 0 4 3 Nonvested 0 22 14 B-25 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Elidbility for Participation General employees - all permanent general employees actively employed by the City on September 30, 1985, who elected to participate. All participants have now retired. Police officers - all actively employed sworn police officers. Firefighters - all actively employed firefighters. GENERAL VESTING EMPLOYEES POLICE OFFICERS FIREFIGHTERS Full Age 65 & 10 years service Age 55 & 10 years service Age 55 & 10 years service Age 52 & 25 years service Age 52 & 25 years service vesting as 10/1/90, age 60 Partial Age 60 & 10 years service Age 50 & 10 years service Age 50 & 10 years service Monthly 2% of highest 5 year 2.25% of average monthly $5.00 per month times Benefits average salary times years earnings times years of years of creditable service of creditable service creditable service for part-time. Full time: 2% of average monthly salary times service years. 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. RUN CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS If an employee terminates his or her employment with the Police or Fire Departments, the employee is entitled to a refund of his or her contribution. Police officers and firefighters contribute l % 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. All three plans use the aggregate actuarial cost method which does not identify or separately amortize unfunded actuarial liabilities. Contribution rates: City Plan members Annual pension cost Contributions made Actuarial surplus applied Actuarial valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: FUNDING POLICY GENERAL POLICE EMPLOYEES OFFICERS FIREFIGHTERS 24.1 % 11.4% 4.5% 0% 1% 1% $ 12,000 $109,907 $ 19,475 6,946 224,244 89,668 5,054 ... 10/01/00 10/01/00 10/01/00 Aggregate cost Aggregate cost Aggregate cost N/A N/A N/A N/A N/A N/A 5 year 5 year smoothed 5 year smoothed smoothed market market market Investment rate of return 7.5% 7.5% 7.5% Projected salary increases N/A 5.5% 5.5% Includes inflation at 3.5% 3.5% 5.5% Cost of living adjustments N/A N/A 3.5% B-27 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS General Employees Police Officers Firefighters General Employees 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 Police Officers 1993-94 1994-95 1995-96. 1996-97 1997-98 1998-99 1999-00 2000-01 Three Year Trend Information Annual Year Pension Ending Cost (APQ 9/30/01 $ 12;000 9/30/00 16,701 9/30/99 13,438 9/30/01 $ 109,907 9/30/00 91,861 9/30/99 89,564 9/30/01 $ 19,475 9/30/00 10,202 9/30/99 11,135 Percentage of APC Net Pension Contributed Obligat_i_on 137 $ (4,494) 110 (9,548) 100 (11,593) 204 $ (180,015) 95 (65,678) 125 (4,818) 460 $ (177,730) 177 (107,537) 374 (32,538) SCHEDULE OF CONTRIBUTIONS ANNUAL CITY STATE REQUIRED CONTRIBUTION CONTRIBUTION CONTRIBUTION PERCENTAGE PERCENTAGE $ 13,348 100.0% 0.0% 17,120 100.0% 0.0% 20,738 100.0% 0.0% 13,500 100.0% 0.0% 13,500 170.7% 0.0% 13,438 100.0% 0.0% 16,701 40.8% 0.0% 12,000 57.9% 0.0% $72,517 39.4% 54.6% 74,514 33.9% 64.3% 73,945 32.6% 68.9% 78,058 26.7% 71.8% 68,311 48.2% 104.1 % 82,558 30.1% 97.5% 91,861 18.7% 0.0% 109,907 26.9% 169.3% I. y CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS ANNUAL CITY REQUIRED CONTRIBUTION CONTRIBUTION PERCENTAGE STATE CONTRIBUTION Firefighters 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% 1998-99 10,100 0.0% 402.1 % 1999-00 10,202 0.0% 156.6% 2000-01 19,475 0.0% 442.2% The City's annual pension cost and net pension obligation for the pension funds for the current year were as follows: Annual required contribution Interest on net pension obligation Adjustment to annual required contribution Annual pension cost Contributions made (Increase) decrease in net pension obligation Net pension obligation beginning of year Net pension obligation end of year General Police Employees Officers Firefighters $ 12,000 $ 109,907 $ 19,475 527 4,926 8,065 527 12,000 6,946 5,054 {9,5A8 i (4,926) (8,065) 109,907 19,475 224,24 89,668 (114,337) (70,193) (65,678) (107,537) $ (180,01 L $ (177,_730) 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. 5 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Employees are fully vested in the Plan after ten years of service. The following is the partial vesting schedule: YEARS OF SERVICE Less than five years 5 years 6 years 7 years 8 years 9 years 10 years VESTED INTEREST 0% 50% 60% 70% 80% 90% 100% Membership in the defined contribution pension plan at September 30, 2001, was as follows: General Employees Retirees and beneficiaries currently receiving benefits 0 Vested terminated employees 1 Active employees: Fully vested 17 Partially vested 11 Nonvested 36 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 2001 was $2,429,101; the City's total payroll was $3,824,586. 1 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 2001 was $194,328 or eight percent (8%) of covered payroll, less forfeitures of $41,663. Actual contribution was $152,665. 8. 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. 9. Risk Management: During fiscal year 1990, the City established an internal service fund to account for its uninsured risk of loss for employee medical and dental coverage. Under this program, the fund provides coverage for the first $40,000 per year in medical, dental, or prescription claims for each covered employee. The City purchases commercial insurance for claims in excess of coverage provided by the fund with a total aggregate stop -loss of $1,000,000. There has been no reduction in insurance coverage from that carried in the prior year. Claims 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. Claims liabilities, beginning of year Incurred claims Payments on claims Claims liabilities, end of year 2001 $ 37,212 $ 568,652 (546,049 2000 1999 20,349 $ 32,324 467,034 386,894 _( 450 171) (398,869) 59,815_ $ 37,212 $ 20,349 Unpaid claims are based on reported claims up to sixty days after year end and personal knowledge of any employees' major health crisis. B-31 10 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Commitments: The following construction projects were not completed at September 30, 2001. TOTAL COST ESTIMATED INCURRED COST TO DATE FINANCING SOURCE City Hall Permitting & Construction Administration $ 73,750 $ Debt Wastewater Treatment Construction Administration 286,415 99,779 Impact Fees Wastewater Treatment O & M Phase Services 48,595 ... Impact Fees Wastewater Treatment Plant Construction 6,547,200 1,550,014 Bond Proceeds Water Wells - Engineering 167,390 107,498 Bond Proceeds East Water Well #4 - Elevated Tank Site 204,990 29,961 Water Fund Downtown Streetscape - Engineering 80,100 58,234 CRA/Infrastructure 11. General Long -Term Debt: The following is a summary of changes in notes payable and bonds outstanding for the year ended September 30, 2001: Line of Notes Mortgages Bonds Credit Payable Payable Total Bonds and Notes Payable At October 1, 2000 $ 565,000 $ 2,000,000 $ 630,894 $ 112,646 $3,308,540 Retirements (210,000) i 90.797 i (22,417) (323.214) Bonds and Notes Payable At September 30, 2001 $ 355,000 $ 2,000,000 $ 540.097 $ 90,229 $2,985,326 B-32 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Bonds and notes payable at September 30, 2001, are comprised of the following individual issues: $2,070,000 Sales Tax Revenue Bond, Series 1989 due serially in annual installments of $110,000 to $225,000 starting June 1, 1991 through June 1, 2003; interest rates vary from 6.3% to 7.05% $ 355,000 Line of credit to Florida Local Government Finance Commission issued August 31, 2000. Matures December 2, 2003. Interest only payments made monthly. Interest is based on a percentage of the federal T-bill rate. (Averaging 2.7%) Capital Improvement Notes, Series 1998A due to SunTrust Bank in five annual calendar year installments of $80,829 (including interest) and two annual installments of $22,979 starting December 1, 1999. The notes bear an interest rate of 3.95% and are secured by the City's general government revenues. The loan was obtained to upgrade the City's computer system, achieve Y2K compliance and purchase a fire truck. 2,000,000 263,135 Capital Improvement Notes, Series 1999 due to SunTrust Bank in ten annual installments of $40,264 (including interest) starting December 1, 2000. The notes bear an interest rate of 5.742%. The loan was obtained to purchase a fire truck. 276,962 Note payable, dated August 1, 2000, due in five annual installments of $18,000 starting August 1, 2001; plus interest at 10% per annum. The downtown development district parking lot land was purchased with the proceeds. 72,000 Note payable to Bank of America, 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. 18.229 Total General Long Term Debt $ 2,985.326 B-33 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS The annual requirements to amortize all general long-term debt outstanding as of September 30, 2001, including interest payments of $269,195 are as follows: Year Ending September 30 2002 2003 2004 2005 2006 2007- Total 2011 Bonds $249,915 $139,165 $ $ $ $ ... $ 389,080 Line of Credit 54,000 54,000 2,009,000 ... ... ... 2,117,000 1998 Note Payable 79,437 79,383 79,326 22,559 22,543 ... 283,248 1999 Note Payable 39,564 39,524 39,482 39,437 39,389 157,025 354,421 Note Payable 25,200 23,400 21,600 19,800 ... ... 90,000 Note Payable 5,418 5,175 4,935 5,244 .. .. 20,772 Total $ 453.534 $ 340,647 $2,154.343 $ 87,040 $ 61,932 $ 157,025 $3.254.521 12. Advance Refunding: In prior years, the City defeased its 1972 and 1988 bond issues by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. On September 30, 2001, $1,97.0,000 of bonds outstanding are considered defeased. On November 21, 2000, the City advance refunded its outstanding $2,790,000 City of Arcadia Dedicated Pool Local Government Revenue Bonds, Series 1993, with an interest rate of 5.48 percent. Funds from debt reserves, sinking funds and impact fees 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. The advance refunding resulted in a difference between the reacquisition price and net carrying amount of the old debt of $435,862. This difference, reported in the financial statements as a deduction from bonds payable, is being charged to operations through the year 2015 using the effective interest method. The City completed this advance refunding to eliminate the financial obligation of the City, eliminate the balloon structure of the debt, and eliminate restrictive covenants of the debt. At September 30, 2001, $2,600,000 of bonds outstanding are considered defeased. 13 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Enterprise Fund Long -Term Debt: The following is a summary of changes in issues outstanding for the year ended September 30, 2001: Bonds and notes payable - October 1, 2000 $ 10,780,000 Additions 17,935,000 Retirements (7,990,000) Defeasance {2 790�00� Bonds and notes payable - September 30, 2001 17,935,000 The debt is comprised of the following items: $17,935,000 Water and Sewer Revenue and Refunding Bond, series 2000 due serially in annual installments of $100,000 to $1,235,000 starting December 1, 2004, through December 1, 2030. Interest rates begin at 4.4% and climb to 5.375% by December, 2001. The net revenues of the water and sewer funds are pledged to secure the repayment of the debt. $17,935,000 B-35 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS The annual requirements to amortize the debt outstanding as of September 30, 2001, including interest payments of $18,671,172, are as follows: YEAR ENDING SEPTEMBER 30 TOTAL 2002 $ 932,127 2003 932,128 2004 1,007,127 2005 1,066,328 2006 1,132,665 2007 - 2011 6,475,637 2012 - 2016 6,510,344 2017 - 2021 6,509,751 2022 - 2026 6,509,395 2027 - 2031 5,530,670 $ 36,606,172 14. Interfund Receivables and Payables: Individual fund interfund receivable and payable balances at September 30, 2001, are as follows: General Fund Group Self Insurance Fund Sewer Fund Water Fund Sanitation Fund Stormwater Fund General Employee Defined Contribution Pension Fund Totals Interfund Interfund Receivables Payables $ 65,956 $ 33,352 ... 65,956 16,599 7,210 7,165 22,855 1,084 55,067 $ 137,622 $ 137,622 15 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 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 Prepaids - Funds expended for service 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 30,330 13,954 75,000 4,152 350,700 5,596.218 w6.122.880 ro-WA CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Retained Earnings - Reserves have been established in accordance with both the covenants of the City's bond indentures for the following items in the Enterprises Funds: Reserved for Debt Service - Fund restricted for future servicing of the revenue bonds. Reserved for Expansion - Utility Benefits Fees and loan proceeds restricted for utility expansion. 16. Changes in Contributed Capital: Balance October 1, 2000 Contributions from developers Balance September 30, 2001 17. Segment Information: $ 310,709 $ 5,597,070 $11,083,291 _ 3,945,939 15.029,230 The City maintains four Enterprise Funds which provide water, sewer, sanitation, and stonmwater services. Segment information for the year ended September 30, 2001, is as follows: FUNDS Water Sewer Sanitation Stormwater Totals Operating Revenues $ 2,654,416 $ 1,562,488 $ 1,144,053 $ 396,747 $ 5,757,704 Depreciation 265,938 336,778 48,447 21,260 672,423 Operating Income (Loss) 1,383,874 (5,832) 52,718 228,445 1,659,205 Operating Grants ... ... ... ... Operating transfer out (238,911) (5,144) (3,430) (1,715) (249,200) Operating transfer in ... ... ... ... ... Net Income (Loss) 1,165,275 (56,499) 57,273 237,764 1,403,813 Current Capital - Contributions 915,987 3,029,952 ... ... 3,945,939 Plant, Property and Equipment: Additions 383,321 2,317,210 175,558 16,837 2,892,926 Net Working Capital 2,366,163 (709,680) 42,937 365,436 2,064,856 Total Assets 15,035,833 24,817,956 507,793 936,198 41,297,780 Bonds and Other Long -Term Liabilities: Payable From Operating Revenues 7,327,789 10,607,211 ... ... 17,935,000 Total Equity 7,622,551 13,076,189 382,578 928,909 22,010,227 CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 18. Contingencies: The City is not aware of any pending or threatened litigation which would not be covered by insurance. L8.1m, COMBINING AND INDIVIDUAL UND AND 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 a !j GENERALFUND The General Fund accounts for all revenues and expenditures of the City that 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. CITY OF CLERMONT, FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 TOTALS ASSETS 2001 2000 Cash and equivalents $ 92,932 $ 454,130 Investments 2,065,098 1,061,387 Receivables: Accounts 77,533 55,957 Assessments 23,968 26,664 Interfund receivables 65,956 11 Interest ... 199 Due from other governments 15,549 156,453 Prepaid expenditures 47,888 2,128 Inventory 13,954 17,572 TOTAL ASSETS $ 2,402,878 $ 1,774,501 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 62,092 $ 187,271 Interest payable 2,116 8,509 Other accruals 64,746 45,591 Interfund payables 33,352 45,542 Deferred revenue 23,968 26,664 Total Liabilities 186,274 313,577 Fund Balance: Reserved for parking lots 4,638 4,638 Reserved for police education 30,330 29,217 Reserved for inventory 13,954 17,572 . Reserved for prepaids 47,888 2,128 Unreserved, undesignated 2,119,794 1,407,369 Total Fund Balance 2,216,604 1,460,924 TOTAL LIABILITIES AND FUND BALANCE $ 2,402,878 $ 1,774,501 • = CITY OF CLERMONT, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 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 (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Debt proceeds Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and and Other Financing Sources (Uses) Fund Balance - October 1 FUND BALANCE - SEPTEMBER 30 VARIANCE FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL $ 3,729,513 $ 4,165,211 $ 435,698 $ 3,297,792 142,000 211,101 69,101 188,517 699,500 749,028 49,528 959,751 367,805 349,018 (18,787) 428,139 145,600 145,564 (36) 174,044 136,700 273,783 137,083 339,369 5,221,118 5,893,705 672,587 5,387,612 1,280,769 1,216,427 64,342 1,244,419 2,325,398 2,334,561 (9,163) 2,455,502 213,374 218,049 (4,675) 141,846 491,710 453,845 37,865 465,752 22,335 27,181 (4,846) 25,586 25,380 19,573 5,807 24,914 1,135,609 1,117,589 18,020 1,713,375 5,494,575 5,387,225 107,350 6,071,394 (273,457) 506,480 217,122 217,122 (56,335) 779,937 (683,782) 249,200 32,078 1,065,347 ... 300,000 249,200 32,078 1,365,347 755,680 812,015 681,565 1,460,924 1,460,924 779,359 $ 1,404,589 $ 2,216,604 $ 812,015 $ 1,460,924 CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 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 Municipality share of EMS 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 Automation False alarms Confiscations Total Fines and Forfeitures Miscellaneous Revenues: Interest and change in value Rentals Memorial sales Surplus equipment Contributions Reimbursements Other miscellaneous Total Miscellaneous Revenues TOTAL REVENUES BUDGET ACTUAL $ 1,594,163 $ 1,594,187 196,000 213,301 648,350 805,962 1,291,000 1,551,762 3,729,513 4,165,212 42,000 58,213 100,000 152,888 142,000 211,101 VARIANCE FAVORABLE 2000 (UNFAVORABLE) ACTUAL $ 24 $ 1,190,310 17,301 205,885 157,612 653,631 260,762 1,247,966 435,699 3,297,792 16,213 71,309 52,888 117,208 69,101 188,517 32,500 ... (32,500) 28,012 136,900 186,663 49,763 168,977 9,200 11,076 1,876 10,150 6,500 6,316 (184) 9,639 411,500 416,036 4,536 380,646 9,000 9,341 341 8,718 9,900 10,908 1,008 10,630 60,000 67,470 7,470 55,901 ... 11,250 11,250 ... 24,000 29,968 5,968 287,078 699,500 749,028 49,528 959,751 2,400 2,795 395 965 53,000 33,818 (19,182) 59,183 312,405 312,405 367,991 367,805 349,018 (18,787) 428,139 105,000 108,523 3,523 124,650 5,600 6,985 1,385 7,060 28,000 24,275 (3,725) 32,338 3,000 4,560 1,560 6,010 4,000 1,221 (2,779) 3,986 145,600 145,564 (36) 174,044 59,600 119,230 59,630 78,196 34,900 88,978 54,078 43,968 1,500 270 (1,230) 510 4,000 (4,000) 12,862 21,700 34,005 12,305 163,687 5,000 21,887 16,887 26,644 10,000 9,412 (588) 13,502 136,700 273,782 137,082 339,369 $ 5,221,118 $ 5,893,705 $ 672,587 $ 5,387,612 B-42 CITY OF CLERMONT, FLORIDA GENERALFUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 VARIANCE FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL General Government: Legislative: Personal services $ 20,668 $ 20,669 $ (1) $ 20,668 Operating expenses 12,585 11,132 1,453 14,658 Capital outlay 2,700 4,030 (1,330) Total Legislative 35,953 35,831 122 35,326 Executive: Personal services 149,854 142,079 7,775 139,398 Operating expenses 8,725 8,249 476 7,600 Capital outlay ... ... 385 Total Executive 158,579 150,328 8,251 147,383 Finance and Administrative: Personal services 239,779 203,168 36,611 274,804 Operating expenses 93,570 113,637 (20,067) 99,121 Capital outlay 2,675 7,315 (4,640) 21,559 Debt service 56,871 57,161 (290) 55,893 Total Finance and Administrative 392,895 381,281 11,614 451,377 Legal Services: Operating expenses 35,000 30,122 4,878 32,800 Total Legal Services 35,000 30,122 4,878 32,800 Planning and Zoning: Personal services 248,590 251,880 (3,290) 216,777 Operating expenses 100,810 61,068 39,742 54,310 Capital outlay 3,750 2,242 1,508 10,315 Total Planning and Zoning 353,150 315,190 37,960 281,402 Other General Services: Personal services 197,501 192,512 4,989 169,034 Operating expenses 41,105 45,344 (4,239) 78,726 Capital outlay 23,000 22,377 623 43,778 Debt service 43,586 43,442 144 4,593 Total Other General Services 305,192 303,675 1,517 296,131 Total General Government 1,280,769 1,216,427 64,342 1,244,419 (continued) B-43 CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 VARIANCE FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Public Safety: Law Enforcement: Personal services 1,458,010 1,439,911 18,099 1,294,297 Operating expenses 178,760 217,589 (38,829) 203,370 Capital outlay 10,170 25,783 (15,613) 77,914 Total Law Enforcement 1,646,940 1,683,283 (36,343) 1,575,581 Fire Control: Personal services 531,393 467,921 63,472 265,854 Operating expenses 80,915 121,629 (40,714) 63,765 Capital outlay 66,150 61,728 4,422 510,092 Debt service ... ... 40,210 Total Fire Control 678,458 651,278 27,180 879,921 Total Public Safety 2,325,398 2,334,561 (9,163) 2,455,502 Physical Environment: Public Works: Personal services 145,098 148,761 (3,663) 90,376 Operating expenses 53,420 54,376 (956) 51,423 Capital outlay 14,856 14,912 (56) 47 Total Physical Environment 213,374 218,049 (4,675) 141,846 Transportation: Road and Streets: Personal services 254,660 222,624 32,036 204,541 Operating expenses 237,050 231,221 5,829 199,532 Capital outlay 61,679 Total Transportation 491,710 453,845 37,865 465,752 (continued) CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 VARIANCE FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Economic Environment: Economic Development: Operating expenses Capital outlay Total Economic Environment Human Services: Animal Control: Personal services Operating expenses Total Human Services Culture and Recreation: Library: Operating expenses Debt service Total Library Parks and Recreation: Personal services Operating expenses Capital outlay Total Parks and Recreation Total Culture and Recreation TOTAL EXPENDITURES 22,335 22,335 27,181 (4,846) 24,086 1,500 27,181 (4,846) 20,680 14,609 6,071 19,981 4,700 4,964 (264) 4,933 25,380 19,573 5,807 24,914 174,491 173,522 969 154,922 5,661 5,661 5,910 180,152 179,183 969 160,832 535,431 470,618 64,813 375,729 324,647 361,018 (36,371) 339,007 95,379 106,770 (11,391) 837,807 955,457 938,406 17,051 1,552,543 1,135,609 1,117,589 18,020 1,713,375 $ 5,494,575 $ 5,387,225 $ 107,350 $ 6,071,394 B-45 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. The General Fund pays certain administrative expenses. INFRASTRUCTURE FUND To account for the proceeds of the Local Government Infrastructure Surtax to be received by the City until December 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. ASSETS Cash and equivalents Investments Due from other government Mortgages receivable Developer credits TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Deferred developer credits Deferred revenue Total Liabilities Fund Balance TOTAL LIABILITIES AND FUND BALANCE CITY OF CLERMONT, FLORIDA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000 INFRA- BLOCK STRUCTURE IMPACT FEE GRANT TOTALS FUND FUND FUND 2001 2000 $ 42,966 $ 220,740 $ 33,198 $ 296,904 $ 322,007 670,560 175,103 ... 845,663 855,236 47,640 10,000 4,000 61,640 60,545 ... ... 109,937 109,937 210,006 ... ... ... 78,892 $ 761,166 $ 405,843 $ 147,135 $ 1,314,144 $ 1,526,686 $ ... $ 64,496 $ 37,198 $ 101,694 $ 28,017 ... 309,585 ... 309,585 ... 109,937 109,937 210,006 374,081 147,135 521,216 238,02.3 761,166 31,762 792,928 1,288,663 $ 761,166 $ 405,843 $ 147,135 $ 1,314,144 $ 1,526,686 B-46 CITY OF CLERMONT, FLORIDA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 INFRA- BLOCK STRUCTURE IMPACT FEE GRANT TOTALS FUND FUND FUND 2001 2000 Revenues: Taxes $ 708,636 $ $ $ 708,636 $ 598,313 Intergovernmental 167,000 14,000 181,000 ... Miscellaneous: Interest 26,964 33,797 60,761 57,230 Impact fees ... 944,819 944,819 996,145 Donation 58,000 58,000 Total Revenues 735,600 1,203,616 14,000 1,953,216 1,651,688 Expenditures: Current: Public Safety 729,816 ... 729,816 Transportation 185,935 ... ... 185,935 29,201 Economic environment . _ . ... 75,142 75,142 ... Recreation 1,125,144 ... 1,125,144 20,048 Debt service: Public Safety 105,454 105,454 Total Expenditures 185,935 1,960,414 75,142 2,221,491 49,249 Excess of Revenues Over (Under) Expenditures 549,665 (756,798) (61,142) (268,275) 1,602,439 Other Financing Sources (Uses): Operating transfers in 60,888 60,888 Operating transfers out (288,348) (288,348) (754,344) Total Other Financing Sources (Uses) (288,348) 60,888 (221460) (754,344) Excess of Revenues Over (Under) Expenditures and Other Financing 261,317 (756,798) (254) (495,735) 848,095 Fund Balances - October 1 499,849 788,560 254 1,288,663 440,568 FUND BALANCES - SEPTEMBER 30 $ 761,166 $ 31,762 $ .. $$ 7� $ 1,288,663 B-47 CITY OF CLERMONT, FLORIDA INFRASTRUCTURE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 VARIANCE FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Revenues: $ 680,350 $ 708,636 $ 28,286 $ 598,313 Taxes Miscellaneous: 13,000 26,964 13,964 18,312 Interest 693,350 735,600 42,250 616,625 Total Revenues Expenditures: Current: 15,000 15,000 • • General government 200,000 185,935 14,065 29,201 Transportation 20,048 Culture and recreation 215,000 185,935 29,065 49,249 Total Expenditures Excess of Revenues Over Expenditures 478,350 549,665 71,315 567,376 Other Financing Sources (Uses): 247,307) Operating transfers out (246,260) (288,348) (42 ) Ogg Total Other Financing Sources (Uses) (246,260) (288,348) -(42,088) (247,307) Excess of Revenues Over Expenditures and Other Financing 232,090 261,317 29,227 320,069 Fund Balance - Beginning of Year _ 499,849 499,849 179,780 FUND BALANCE - END OF YEAR $ 731,939 $ 761,166 $ 29,227 $ 499,849 IC ' CITY OF CLERMONT, FLORIDA IMPACT FEE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 VARIANCE FAVORABLE 2000 Revenues: Intergovernmental Miscellaneous: Interest Impact fees Donation Total Revenues Expenditures: Current: Public safety Recreation Debt service: Public safety Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues Over (Under) Expenditures and Other Financing Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR BUDGET ACTUAL (UNFAVORABLI $ ... $ 167,000 $ 167,000 27,850 33,797 5,947 388,500 944,819 556,319 ... 58,000 58,000 416,350 1,203,616 787,266 38,917 996,145 1,035,062 195,331 729,816 (534,485) ... 380,118 1,125,144 (745,026) 113,321 105,454 7,867 688,770 1,960,414 (1,271,644) . (272,420) (756,798) (484,378) 1,035,062 (507,037) (507,037) (272,420) (756,798) (484,378) 528,025 788,560 788,560 260,535 $ 516,140 $ 31,762 $ (484,378) $ 788,560 B-49 77- ol� 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. CITY OF CLERMONT, FLORIDA SALES TAX REVENUE BOND SINKING FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 TOTALS ASSETS 2001 2000 Cash and equivalents $ 79,152 $ 83,170 TOTAL ASSETS $ 79,152 $ 83,170 FUND BALANCE Fund Balance: Reserved for debt service - principal $ 75,000 $ 70,000 Reserved for debt service - interest 4,152 13,170 TOTAL FUND BALANCE $ 79,152 $ 83,170 ill 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, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 VARIANCE FAVORABLE 2000 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Revenues: Miscellaneous: Interest $ 4,000 $ 5,808 $ 1,808 $ 5,486 Total Revenues 4,000 5,808 1,808 5,486 Expenditures: Debt service: Fees 750 1,500 (750) 750 Interest 39,510 39,510 ... 53,310 Principal 210,000 210,000 200,000 Total Expenditures 250,260 251,010 (750) 254,060 Excess (Deficiency) of Revenues Over Expenditures _ (246,260) (245,202). 1,058 (248,574) Other Financing Sources: Operating transfers in 246,260 241,184 (5,076) 247,307 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures (4,018) (4,018) (1,267) Fund Balance - Beginning of Year 83,170 83,170 84,437 FUND BALANCE - END OF YEAR $ 83,170 $ 79,152 $ (4,018) $ 83,170 B-51 CAPITAL PROJECT FUND The Capital Project Fund is used to account for the financial resources to be used for the acquisition or construction of major capital facilities when the project is financed over several accounting periods. BUILDING CONSTRUCTION FUND To account for the financing and construction of Fire Station No. 1 and new City Hall. ASSETS Investments Accounts receivable Prepaid items TOTAL ASSETS CITY OF CLERMONT, FLORIDA BUILDING CONSTRUCTION FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 LIABILITIES AND FUND BALANCE Liabilities Contracts payable - retainage Fund Balance TOTAL LIABILITIES AND FUND BALANCE TOTALS 2001 2000 $ 669,554 $ 1,275,801 2,877 2,877 $ 675,098 $ 1,282,678 $ 5,900 669,198 $ 675,098 $ 194,634 1,088,044 $ 1,282,678 B-52 CITY OF CLERMONT, FLORIDA BUILDING CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED SEPTEMBER 30, 2001 PROJECT PRIOR CURRENT TOTAL AUTHORIZATION YEARS YEAR TO DATE Revenues: Miscellaneous Interest Total Revenues Expenditures: Capital outlay: City Hall (see note below) Fire Station Total Capital Outlay Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Debt proceeds Debt service 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 Balance - October 1 FUND BALANCE.- SEPTEMBER 30 $ 42,000 $ 8,224 $ 55,957 $ 64,181 42,000 8,224 55,957 64,181 4,631,000 189,549 188,499 378,048 1,140,000 730,631 284,971 1,015,602 5,771,000 920,180 473,470 1,393,650 (5,729,000) (911,956) (417,513) (1,329,469) 5,229,000 2,000,000 ... 2,000,000 ... ... (1,333) (1,333) 767,866 267,866 ... 267,866 (267,866) (267,866) (267,866) 5,729,000 2,000,000 (1,333) 1,998,667 $ $ 1,088,044 $ (418,846) $ 669,198 1,088,044 $ 669,198 (This amount represents the City's best estimate of the City Hall project costs) B-53 S2. r PROPRIETARY FUND TYPES 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 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 service 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 AS OF SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 STORM - WATER SEWER SANITATION WATER TOTALS ASSETS FUND FUND FUND FUND 2001 2000 Current Assets: Cash and equivalents $ 290,475 $ 128,931 $ 2,586 $ 261,482 $ 683,474 $ 627,512 Investments 1,896,627 344,692 52,273 69,163 2,362,755 1,405,820 Receivables: Accounts 211,501 149,416 106,224 41,158 508,299 429,609 Interest 24,390 51,482 ... 75,872 4,149 Other 9,060 495 ... ... 9,555 9,079 Interfund receivables ... 16,599 ... ... 16,599 ... Prepaid items 8,378 17,036 7,069 922 33,405 4,333 Inventory 39,111 ... ... ... 39,111 33,503 Total Current Assets 2,479,542 708,651 168,152 372,725 3,729,070 2,514,005 Restricted Assets: Cash and equivalents 659,536 552,966 ... 1,212,502 1,638,668 Investments 5,420,831 10,449,936 15,870,767 5,774,744 Total Restricted Assets 6,080,367 11,002,902 17,083,269 7,413,412 Other Assets: Deferred charges 140,494 249,767 ... 390,261 173,792 Property, Plant and Equipment Land 224,209 1,239,920 ... 1,464,129 1,464,129 Water system 8,761,981 ... ... 8,761,981 8,628,853 Sewer sytem ... 12,935,556 ... 12,935,556 12,810,150 Improvements other than buildings ... ... ... 558,152 558,152 541,315 Machinery and equipment 385,977 435,444 1,009,150 97,528 1,928,099 1,677,767 Construction in progress 206,020 2,161,203 ... 2,367,223 9,578,187 16,772,123 1,009,150 655,680 28,015,140 25,122,214 Less accumulated depreciation 3,242,757 3,915,487 669,509 92,207 7,919,960 7,247,537 Net Property, Plant and Equipment 6,335,430 12,856,636 339,641 563,473 20,095,180 17,874,677 TOTAL ASSETS $ 15,035,833 , $ 24,817,956 $ 507,793 $ 936,198 $ 41,297,780 $ 27,975,886 B-54 STORM - WATER SEWER SANITATION WATER TOTALS LIABILITIES AND FUND EQLrL FUND FUND FUND FUND 2001 2000 Liabilities: Current Liabilities (payable from current assets): Accounts payable $ 25,552 $ 87,695 $ 92,530 $ 5,259 $ 211,036 $ 354,385 Other accrued expenses 35,853 23,930 9,830 946 70,559 61,343 Contracts payable 44,809 1,299,496 ... ... 1,344,305 ... Interfandpayables 7,165 7,210 22,855 1,084 38,314 17,939 Total Current Liabilities (payable from current assets) 113,379 1,418,331 125,215 7,289 1,664,214 433,667 Current Liabilities (payable from restricted assets): Deposits 109,549 ... ... ... 109,549 94,751 Accrued interest 111,855 198,854 310,709 180,176 Revenue bonds ... 190,000 Total Current Liabilities (payable from restricted assets) 221,404 198,854 420,258 464,927 Long -Terre Liabilites: Revenue bonds (net of current portion and deferred refunding amount) 7,078,499 10,124,582 17,203,081 10,416,817 Total Long -Term Liabilities 7,078,499 10,124,582 17,203,081 10,416,817 Total Liabilities 7,413,282 11,741,767 125,215 7,289 19,287,553 11,315,411 Fund Equity: Contributed capital 3,508,684 11,282,277 101,722 136,547 15,029,230 11,083,291 Retained Earnings: Reserved for debt service 111,855 198,854 ... ... 310,709 245,521 Reserved for expansion 4,002,012 1,595,058 ... ... 5,597,070 3,910,988 Unreserved 280,856 792,362 1,073,218 1,420,675 Total Retained Earnings 4,113.867 1,793,912 280,856 792,362 6,980,997 5,577,184 Total Fund Equity 7,622,551 13,076,189 382,578 928,909 22,010,227 16,660,475 TOTAL LIABILITIES AND FUND EQUITY $ 15,035,833 $ 24,817,956 $ 507,793 $ 936,198 $ 41,297,780 $ 27,975,886 B-55 - Q:En?t ` •a»z&: 4 - - 41 -' - `c.66+*camrm.�d::2�.92«y$«2y: CITY OF CLERMONT, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 STORM - WATER SEWER SANITATION WATER TOTALS FUND FUND FUND FUND 2001 2000 Operating Revenues: Charges for services $ 2,510,650 $ 1,495,795 $ 1,131,663 $ 396,747 $ 5,534,855 $ 4,478,897 Miscellaneous 143,766 66,693 12,390 222,849 41,485 Total Operating Revenues 2,654,416 1,562,488 1,144,053 396,747 5,757,704 4,520,382 Operating Expenses: Personal services 518,895 462,447 309,134 61,653 1,352,129 1,178,436 Utilities 155,206 238,625 931 394,762 367,586 Dumping fees ... 58,972 336,871 13,361 409,204 299,285 Administrative services 113,675 142,140 34,220 22,370 312,405 368,031 Repair and maintenance 99,221 100,475 48,307 28,039 276,042 220,754 Depreciation 265,938 336,778 48,447 21,260 672,423 678,301 Professional services 23,168 144,147 286,597 15,914 469,826 318,900 Insurance 13,850 34,615 12,326 1,940 62,731 56,830 Operating supplies 63,960 39,275 10,932 1,677 115,844 252,660 Office expense 15,515 10,117 2,704 1,764 30,100 53,076 Bad debt 1,114 729 866 324 3,033 5,550 Total Operating Expenses 1,270,542 1,568,320 1,091,335 168,302 4,098,499 3,799,409 Operating Income (Loss) 1,383,874 (5,832) 52,718 228,445 1,659,205 720,973 Nonoperating Revenues (Expenses): Interest revenue 356,639 509,207 6,140 11,034 883,020 396,802 Interest expense (359,148) (614,835) ... (973,983) (587,297) Grants/contributions ... 1,845 ... 1,845 3,447 Change in fair value 22,821 60,105 82,926 24,242 Total Nonoperating Revenues (Expenses) 20,312 (45,523) 7,985 11,034 (6,192) (162,806) Income (Loss) Before Operating Transfers 1,404,186 (51,355) 60,703 239,479 1,653,013 558,167 Operating transfers (out) (238,911) (5,144) (3.430) (L715) (249,200) (290,444) Net Income (Loss) 1,165,275 (56,499) 57,273 237,764 1,403,813 267,723 Retained Earnings - October 1 2,948,592 1,850,411 223,583 554,598 5,577,184 5,309,461 RETAINED EARNINGS - SEPTEMBER 30 $ 4,113,867 $ 1,793,912 $ 280,856 $ 792,362 $ 6,980,997 $ 5,577,184 B-56 CITY OF CLERMONT, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 STORM - WATER SEWER SANITATION WATER TOTALS FUND FUND FUND FUND 2001 2000 Cash Flows From Operating Activities: Charges for services $ 2,653,958 $ 1,539,814 $ 1,124,796 $ 375,244 $ 5,693,812 $ 4,426,234 Cash payments to suppliers (508,991) (970,914) (667,580) (104,491) (2,251,976) (1,771,833) Cash payments for employee services (521,527) (449,641) (306,782) (61,187) (1,339,137) (1,187,648) Net Cash Provided (Used) By Operating Activities 1,623,440 119,259 150,434 209,566 2,102,699 1,466,753 Cash Flows From NonCapital Financing Activities: Short term interfund advance (16,599) 16,599 Operating transfers out (238,911) (5,144) (3,430) (1,715) (249,200) (290,444) Grants/contributions 1,845 1,845 6,588 Net Cash Provided (Used) By NonCapital Financing Activities (238,911) (21,743) 15,014 (1,715) (247,355) (283,856) Cash Flows From Capital and Related Financing Activities: Acquisition and construction of capital assets (338,512) (1,017,714) (175,558) (16,837) (1,548,621) (825,540) New debt 6,923,257 9,846,277 ... ... 16,769,534 Principal paid (4,455,166) (5,977,859) ... ... (10,433,025) (180,000) Interest paid (304,771) (495,393) ... ... (800,164) (530,069) Contributed capital 915,987 3,029,952 3,945,939 3,809,891 Net Cash Provided (Used) By Capital and Related Financing Activities 2,740,795 5,385,263 (175,558) (16,837) 7,933,663 2,274,282 Cash Flows From Investing Activities: Interest 335,846 457,801 6,140 11,034 810,821 396,239 Investment sales ... ... ... ... 5,468 Investment purchases (4,433,524) (6,475,880) (2,619) (58,009) (10,970,032) (3,310,104) Net Cash Provided (Used) By Investing Activities (4,097,678) (6,018,079) 3,521 (46,975) (10,159,211) (2,908,397) Net Increase (Decrease) in Cash and Equivalents 27,646 (535,300) (6,589) 144,039 (370,204) 548,782 Cash and Equivalents at Beginning of Year 922,365 1,217,197 9,175 117,443 2,266,180 1,717,398 Cash and Equivalents at End of Year $ 950,011 $ 681,897 $ 2,586 $ 261,482 $ 1,895,976 $ 2,266,180 Noncash investing activities: Investments' unrealized gain increased by $82,926 as of September 30, 2001. B-57 STORM - WATER SEWER SANITATION WATER TOTALS FUND FUND FUND FUND 2001 2000 Reconciliation of Operating Income To Net Cash Provided By Operating Activities: Operating income (Loss) $ 1,383,874 $ (5,832) $ 52,718 $ 228,445 $ 1,659,205 $ 720,973 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 265,938 336,778 48,447 21,260 672,423 678,301 Change in Assets and Liabilities: Decrease (Increase) in receivables (15,256) (22,674) (19,257) (21,503) (78,690) (99,441) Decrease (Increase)in prepaids (8,378) (17,036) (2,736) (922) (29,072) 454 Decrease (Increase) in inventory (5,608) (5,608) (7,407) Increase (Decrease)in deposits 14,798 ... ... 14,798 5,293 Increase (Decrease)in accrued expenses (2,632) 12,806 2,352 466 12,992 (9,212) Increase (Decrease)in payables (9,296) (184,783) 68,910 (18,180) (143,349) 177,792 Total Adjustments 239,566 125,091 97,716 (18,879) 443,494 745,780 Net Cash Provided (Used) by Operating Activities $ 1,623,440 $ 119,259 $ 150,434 $ 209,566 $ 2,102,699 $ 1,466,753 B-58 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 and to the various departments. CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 TOTALS ASSETS 2001 2000 Investments TOTAL ASSETS LIABILITIES AND FUND EQUITY Liabilities: Accounts payable Interfund payable TOTAL LIABILITIES Retained Earnings: Unreserved TOTAL LIABILITIES AND FUND EQUITY $ 59,815 $ 37,212 65,956 11 125,771 37,223 (125,771) (37,223) B-59 CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND y COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEARS ENDED SEPTEMBER 30, 2001 AND 2000 TOTALS 2001 Operating Revenues: Charges for services $ 611,896 Insurance stop -loss payments 1,620 Total Operating Revenues 613,516 Operating Expenses: Re -insurance premiums 103,766 Administrative fees 29,943 Medical claims 568,652 Total Operating Expenses 702,361 Operating (Loss) (88,845) Nonoperating Revenues: Interest revenue 297 Net (Loss) (88,548) Retained Earnings - October 1 (37,223) RETAINED EARNINGS - SEPTEMBER 30 $ (125,771) 2000 $ 451,120 16,449 467,569 59,330 23,587 467,034 549,951 (82,382) 1,227 (81,155) 43,932 $ (37,223) B-60 CITY OF CLERMONT, FLORIDA GROUP SELF INSURANCE FUND COMPARATIVE STATEMENT OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2001 AND 2000 TOTALS 2001 2000 Cash Flows From Operating Activities: Cash received from customers $ 613,516 $ 467,569 Cash payments to suppliers (133,709) (82,917) Cash payments for medical claims (546,049) (450,160) Net Cash Used By Operating Activities (66,242) (65,508) Cash Flows From Investing Activities: Interest 297 1,227 Investment sales 64,281 Net Cash Provided By Investing Activities 297 65,508 Cash Flows From Non -Capital Financing: Short term advance 65,945 Net Change in Cash • • . Cash at Beginning of Year Cash at End of Year $ $ Reconciliation of Operating Income to Net Cash Used By Operating Activities: Operating (loss) $ (88,845) $ (82,382) Adjustments to Reconcile Operating Income to Net Cash (Used) By Operating Activities: Increase in payables 22,603 16,874 Net Cash Used By Operating Activities $ (66,242) $ (65,508) L0.1 • FIDUCIARY FUND TYPES 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 firefighters. The City maintains defined benefit and defined contribution plans for its general employees. Annual contributions made to the defined benefit plan are in accordance with an actuarial study, whereas, a fixed percentage of employees salaries is used in determining the annual contribution to the defined contribution plan. POLICE OFFICERS PENSION TRUST FUND To account for the accumulation of resources to be used for the retirement annuities of all police officers. The state contributes money based upon the number of police officers and the City contributes an amount determined by an actuarial study. FIREFIGHERS PENSION TRUST FUND To account for the accumulation of resources to be used for the retirement annuities of all firefighters. The state contributes money based upon the number of firefighters and the City contributes an amount determined by an actuarial study. 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. EXPENDABLE TRUST FUND: COMMUNITY REDEVELOPMENT FUND To account for funds administered by Downtown Clermont Redevelopment Agency. The agency is authorized to use the funds to finance community redevelopment projects within the downtown area. CITY OF CLERMONT, FLORIDA COMBINING BALANCE SHEET FIDUCIARY FUND TYPES SEPTEMBER 30, 2001 AND 2000 EXPENDABLE PENSION TRUST TRUST NONEXPENDA13LE FUND FUNDS TRUST COMMUNITY CEMETERY REDEVELOPMENT PUBLIC PERPETUAL TOTALS FUND EMPLOYEES CARE 2001 2000 ASSETS Cash and equivalents $ ... $ ... $ 26,391 $ 26,391 $ 19,657 Investments ... 5,541,151 324,309 5,865,460 6,061,532 Interfund receivable 55,067 55,067 63,481 Total Assets $ $ 5,596,218 $ 350,700 $ 5,946,918 $ 6,144,670 FUND BALANCE Reserved for downtown redevelopment $ $ $ ... $ $ 1,667 Reserved for employees' pension benefits ... 5,596,218 ... 5,596,218 5,816,953 Reserved for cemetery care ... 350,700 350,700 326,050 Total Fund Balance $ $ 5,596,218 $ 350,700 $ 5,946,918 $ 6,144,670 B-62 CITY OF CLERMONT, FLORIDA EXPENDABLE TRUST FUND COMMUNITY REDEVELOPMENT FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 2001 AND 2000 ASSETS TOTALS 2001 2000 Cash and equivalents $ $ 1,667 TOTAL ASSETS $ $ 1,667 FUND BALANCE Fund Balance: Reserved for downtown redevelopment $ $ 1,667 C M, CITY OF CLERMONT, FLORIDA EXPENDABLE TRUST FUND COMMUNITY REDEVELOPMENT FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 2001 AND 2000 TOTALS 2001 2000 Revenues: Ad valorem taxes $ 57,557 $ 43,124 Interest 1,500 1,578 Total Revenues 59,057 44,702 Expenditures: Transportation 27,000 130,550 Economic environment 20,000 20,000 Total Expenditures 47,000 150,550 Excess (deficiency) of revenues over expenditures 12,057 (105,848) Other financing sources: Operating transfer out (13,724) Debt proceeds ... 90,000 Total other financing sources (uses) (13,724) 90,000 Excess (deficiency) of revenues and other financing sources over expenditures (1,667) (15,848) Fund Balance - Beginning of Year 1,667 17,515 Fund Balance - End of Year $ $ 1,667 r CITY OF CLERMONT, FLORIDA PENSION TRUST FUNDS COMPARATIVE STATEMENT OF PLAN NET ASSETS SEPTEMBER 30, 2001 AND 2000 C:E.NERAL EMPLOYEES TOTALS Defined Defined Police Firefighter Benefit Contribution Pension Pension 2001 2000 ASSETS Investments (at fair value) $ 974,174 $ 1,367,810 $ 2,392,277 $ 806,890 $ 5,541,151 $ 5,753,472 Receivables Interfund 55,067 55,067 63,481 TOTAL ASSETS $ 974,174 $ 1,422,877 $ 2,392,277 $ 806,890 $ 5,596,218 $ 5,816,953 LIABILITIES Net assets held in trust for pension benefits $ 974,174 $ 1,422,877 $ 2,392,277 $ 806,890 $ 5,596,218 $ 5,816,953 B-65 CITY OF CLERMONT, FLORIDA PENSION TRUST FUNDS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEARS ENDED SEPTEMBER 30, 2001 AND 2000 GENERAL EMPLOYEES TOTALS Defined Defined Police Firefighter Benefit Contribution Pension Pension 2001 2000 Additions Contributions Employer $ 6,946 $ 152,665 $ 29,633 $ $ 189,244 $ 159,671 Plan members ... ... 8,564 3,541 12,105 10,329 State 186,047 86,127 272,174 15,998 Total Contributions 6,946 152,665 224,244 89,668 473,523 185,998 Investment income (loss) (71,800) (102,013) (170,534) (56,166) (400,513) 782,002 Less: Investment expenses 4,927 6,133 8,896 6,310 26,266 22,873 Net investment income (loss) (76,727) (108,146) (179,430) (62,476) (426,779) 759,129 Total Contributions and Investment (Loss) (69,781) 44,519 44,814 27,192 46,744 945,127 Deductions Benefits/distributions 85,347 101,348 80,006 778 267,479 204,609 Net increase (decrease) (155,128) (56,829) (35,192) 26,414 (220,735) 740,518 Net assets held in trust for pension benefits ' Beginning of year 1,129,302 1,479,706 2,427,469 780,476 5,816,953 5,076,435 End of Year $ 974,174 $ 1,422,877 $ 2,392,277 $ 806,890 $ 5,596,218 $ 5,816,953 B-66 CITY OF CLERMONT, FLORIDA NONEXPENDABLE TRUST FUND CEMETERY PERPETUAL CARE FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 2001 AND 2000 TOTALS ASSETS 2001 2000 Cash and equivalents $ 26,391 $ 17,990 Investments 324,309 308,060 TOTAL ASSETS $ 350,700 $ 326,050 FUND BALANCE Fund Balance: Reserved for cemetery care $ 350,700 $ 326,050 lim 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, 2001 AND 2000 TOTALS 2001 2000 Operating Revenues: Sales - cemetery lots $ 24,650 Fund Balance - Beginning of Year 326,050 Fund Balance - End of Year $ 350,700 17,725 308,325 $ 326,050 ow CITY OF CLERMONT, FLORIDA NONEXPENDABLE TRUST FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 TOTALS Cash Flows from Operating Activities: Cash received from customers Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Investment purchases Net Increase (Decrease) in Cash and Equivalents Cash and Equivalents at Beginning of Year Cash and Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income Net Cash Provided by Operating Activities 2001 2000 $ 24,650 $ 17,725 24,650 17,725 (16,249) (18,213) 8,401 (488) 17,990 18,478 $ 26,391 $ 17,990 $ 24,650 $ 17,725 $ 24,650 $ 17,725 C •' ACCOUNT GROUPS ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP This is a self -balancing account group used to record the fixed assets of the City that 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 City's general long-term debt that is not related to the proprietary fund operations or accounted for in trust funds. CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES AS OF SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 TOTALS 2001 2000 General Fixed Assets: Land $ 2,070,991 $ 1,535,811 Buildings 4,086,227 3,564,285 Improvements other than buildings 7,792,936 6,653,653 Equipment and vehicles 3,577,812 3,119,402 Total General Fixed Assets $ 17,527,966 $ 14,873,151 Investments in General Fixed Assets From: Capital Projects Funds: Revenue bonds $ 2,954,726 $ 2,954,726 Federal, state and local grants 1,070,247 1;070,247 General Fund revenues 7,835,511 7,617,339 Special Revenue Fund revenues 4,891,505 2,454,862 Gifts and other 775,977 775,977 Total Investment in General Fixed Assets $ 17,527,966 $ 14,873,151 IC 1 CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AS OF SEPTEMBER 30, 2001 IMPROVEMENTS OTHER THAN FUNCTION TOTAL LAND BUILDINGS BUILDINGS EQUIPMENT General government $ 865,512 $ 208,848 $ 83,896 $ $ 572,768 Public safety 4,486,938 183,458 2,238,417 2,065,063 Physical environment 1,157,862 47,168 721,814 98,938 289,942 Transportation 2,725,952 ... 2,576,937 149,015 Culture/recreation 7,810,517 1,403,409 956,830 4,970,688 479,590 Older assets not maintained by function 481,185 228,108 85,270 - 146,373 21,434 TOTAL GENERAL FIXED ASSETS $ 17,527,966 $ 2,070,991 $ 4,086,227 $ 7,792,936 $ 3,577,812 B-71 CITY OF CLERMONT, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSET BY FUNCTION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 GENERAL GENERAL FIXED FIXED ASSETS ASSETS FUNCTION 09/30/00 ADDITIONS DEDUCTIONS General government $ 835,325 $ 30,187, $ Public safety 3,692,970 793,968 Physical environment 1,157,862 ... Transportation 2,536,620 189,332 ... Culture/recreation 6,169,189 1,641,328 Older assets not maintained by function 481,185 TOTAL GENERAL FIXED ASSETS $ 14,873,151 $ 2,654,815 $ $ 865,512 4,486,938 1,157,862 2,725,952 7,810,517 481,185 $ 17,527,966 CITY OF CLERMONT, FLORIDA SCHEDULE OF GENERAL LONG-TERM DEBT SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000 TOTALS 2001 2000 Amount To Be Provided For The Payment of General Long -Term _Debt Amount available for principal payment in debt service fund $ 75,000 $ 70,000 Amount to be provided 2,910,326 3,238,540 Total to be Provided $ 2,985,326 $ 3,308,540 General Lon -Term Debt Payer} ]g Revenue bonds payable $ 355,000 $ 565,000 Line of credit 2,000,000 2,000,000 Notes payable - System upgrade & firetruck 540,097 630,894 Note payable - Parking lot property 72,000 90,000 Note payable - Library 18,229 22,646 Total General Long -Term Debt Payable $ 2,985,326 $ 3,308,540 B-73 STATISTICAL SECTION Statistical tables differ from financial statements because they cover more than one fiscal year and may present non -accounting 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, 2001 The following Statistical Tables recommended by the National Council on Governmental Accounting are not included for the reasons stated below - Tables that concern General Obligation Debt are omitted because neither the City nor other overlapping Governments has incurred tax -supported debt. • The Legal Debt Margin Computation Table is not presented because there is no law or ordinance that sets the maximum amount of debt the City is legally permitted to issue. C-1 CITY OF CLERMONT, FLORIDA EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS FISCAL GENERAL PUBLIC PHYSICAL YEAR GOVERNMENT SAFETY ENVIRONMENT 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 1998-99 1,059,558 1,733,444 137,219 1999-00 942,498 3,049,106 134,486 2000-01 1,098,769 3,349,348 211,801 (1) Includes General, Special Revenue, and Capital Projects Funds. (2) Community Development Block Grant expenditures were included in the 1992-93, 1995-96, 1996-97, 1997-98 and 1998-99 Fiscal Years. C-2 TABLE 1 (2) ECONOMIC HUMAN CULTURE AND TRANSPORTATION ENVIRONMENT SERVICES RECREATION TOTAL $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 4,369,336 437,386 36,111 25,794 1,347,959 4,777,471 494,953 25,586 24,914 1,733,423 6,404,966 639,780 102,323 19,573 2,242,733 7,664,327 C-3 CITY OF CLERMONT, FLORIDA REVENUE BY SOURCE (1) LAST TEN FISCAL YEARS LICENSES FISCAL AND INTER - YEAR TAXES PERMITS GOVERNMENTAL 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 1998-99 3,171,446 149,702 872,081 1999-00 3,911,066 188,517 959,751 2000-01 4,873,847 211,101 930,028 (1) Includes General, Special Revenue, Debt Service and Capital Projects Funds. C-4 TABLE 2 CHARGES FINES INTEREST FOR AND ON SERVICES FORFEITURES INVESTMENTS MISCELLANEOUS TOTAL $32,676 $90,039 $84,415 $55,515 $2,701,399 36,662 75,224 49,740 154,318 3,007,106 38,402 91,066 9,906 122,270 2,790,002 57,241 152,020 86,600 510,081 3,592,797 32,537 151,879 102,405 244,904 3,659,846 46,354 128,047 81,605 224,626 4,063,662 42,459 160,522 85,140 293,853 4,497,977 44,336 108,720 86,799 311,494 41744,578 60,148 174,044 148,136 1,258,318 6,699,980 36,613 145,564 241,756 1,157,372 7,596,281 C-5 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 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 1998-99 1998 324,049,311 291,644,380 2.979 1999-00 1999 396,645,279 356,980,751 3.479 2000-01 2000 500,572,450 450,515,205 3.729 (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 Property Appraiser's office. (4) Tax rate per $1,000 of taxable valuation. C-6 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 LEVY COLLECTIONS COLLECTIONS TAX LEVY $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% 868,809 836,304 96.3% 1,604 837,908 96.4% 1,241,936 1,200,779 96.7% 4,492 1,205,271 97.0% 1,679,971 1,606,686 95.6% 9,190 1,615,876 96.2% C-7 CITY OF CLERMONT, FLORIDA PROPERTY TAX RATES - DIRECT AND ALL OVERLAPPING GOVERNMENTS (1) LAST TEN FISCAL YEARS (2) LAKE COUNTY FISCAL TAX LAKE MSTU YEAR YEAR CITY COUNTY STORMWATER 1991-92 1991 2.729 4.938 0.000 1992-93 1992 2.729 4.864 0.000 1993-94 1993 2.979 5.135 0.000 1994-95 1994 2.979 5.135 0.000 1995-96 1995 2.979 4.927 0.000 1996-97 1996 2.979 4.909 0.000 1997-98 1997 2.979 4.733 0.000 1998-99 1998 2.979 4.733 0.000 1999-00 1999 3.479 4.733 0.100 2000-01 2000 3.729 5.117 0.200 (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. c-8 TABLE 4 LAKE COUNTY LAKE COUNTY SOUTH LAKE ST. JOHNS RIVER SCHOOL WATER HOSPITAL WATER MANAGEMENT DISTRICT AUTHORITY DISTRICT DISTRICT TOTAL 8.880 0.751 2.000 0.358 19.656 9.005 0.740 2.000 0.358 19.696 8.938 0.517 2.000 0.470 20.039 8.515 0.400 2.000 0.482 19.511 9.678 0.384 2.000 0.482 20.450 9.228 0.384 2.000 0.482 19.982 9.100 0.384 2.000 0.482 19.678 9.190 0.384 2.000 0.482 19.768 8.742 0.500 1.000 0.482 19.036 8.495 0.500 1.550 0.472 20.063 C-9 CITY OF CLERMONT, FLORIDA WATER AND SEWER CUSTOMER DATA LAST TEN FISCAL YEARS NUMBER OF CUSTOMERS FISCAL WATER YEAR RESIDENTIAL COMMERCIAL 1991-92 2419 355 1992-93 2484 366 1993-94 2526 385 1994-95 3136 392 1995-96 3483 391 1996-97 3987 439 1997-98 4549 447 1998-99 5009 490 1999-00 5992 531 2000-01 7303 579 SEWER RESIDENTIAL COMMERCIAL 1849 307 1893 313 1931 330 1978 350 2334 358 2770 386 3099 388 3328 443 3928 458 5001 511 Source: Water and Sewer Customer Data Reports as of September 30 TABLE 5 ANNUAL WATER USAGE (GAL) 429,716,000 465,789,000 493,821,000 482,962,000 630,763,000 833,834,000 1,087,078,000 1,146,663,000 1,394,359,000 1,365,196,000 C-10 CITY OF CLERMONT, FLORIDA UTILITY REVENUE BOND COVERAGE - ALL UTILITY REVENUE BONDS LAST TEN FISCAL YEARS TOTAL (1) FISCAL SYSTEM OPERATING YEAR REVENUES EXPENSES 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 1998-99 2,968,098 1,737,216 1999-00 3,832,369 2,122,938 2000-01 5,082,750 2,236,146 (1) Excludes interest expense and depreciation. (2) Maximum debt service in any subsequent year is $1,304,315 C-11 (2) DEBT NET SERVICE REVENUES REQUIREMENTS $557,307 $339,689 512,069 338,256 358,633 290,083 620,946 326,420 958,864 509,355 1,036,772 708,660 1,127,707 711,250 1,230,882 726,858 1,709,431 724,400 2,846,604 932,127 COVERAGE 1.64% 1.51 % 1.24% 1.90% 1.88% 1.46% 1.59% 1.69% 2.36% 3.05% C-12 FISCAL YEAR CITY OF CLERMONT, FLORIDA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (1) POPULATION (2) SCHOOL ENROLLMENT TABLE 7 (3) UNEMPLOYMENT RATE 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% 1998-99 8,861 3,683 2.7% 1999-00 9,455 3,841 2.6% 2000-01 10,571 4,500 3.4% DATA SOURCES: (1) College of Business Administration, University of Florida - Bureau of Economic and Business Research. (2) Figures represent grades K-9 in public schools. Source - Lake County School Board (3) Information available on countywide basis only. Data was obtained from the Florida Department of Labor, Bureau of Labor Market Information. C-13 CITY OF CLERMONT, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS (1) (1) COMMERCIAL RESIDENTIAL CONSTRUCTION CONSTRUCTION FISCAL # OF # OF YEAR UNITS VALUE UNITS VALUE 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 1998-99 5 17,725,000 492 34,375,122 1999-00 11 22,396,000 711 58,829,964 2000-01 17 17,264,099 884 '82,040,352 DATA SOURCES: (1) City of Clermont zoning clearances. (2) Information available on countywide basis only. Data was obtained from the Federal Deposit Insurance Corporation (FDIC) (3) Taxable assessed valuation per Lake County Property Appraiser's form DR-422. (4) Non-taxable assessed valuation per Lake County Property Appraiser's office. C-14 (2) BANK nFPn.IT. $1,628,750,000 1,632,882,000 1,701,038,000 1,718,591,000 1,776,670,000 2,035,941,000 2,421,416,000 2,563,111,000 2,793,537,000 3,011,000,000 ASSESSED TAXABLE PROPERTY VALUE (3) TAXABLE $166,770,968 171,790,483 171,032,783 186,229,064 205,855,141 213,141,778 247,468,178 291,644,380 356,980,751 450,515,205 TABLE 8 (4) NONTAXABLE $49,624,516 50,404,700 56,272,383 56,910,019 58,399,561 65,771,140 75,608,647 82,258,004 88,776,967 105,296,517 C-15 CITY OF CLERMONT, FLORIDA PRINCIPAL TAXPAYERS TAXPAYER Clermont Center LTD 20636 Biscayne Blvd Aventura, FL 33180 Lennar Homes, Inc. 700 NW 107th Avenue Miami, FL 33172 Lennar Land Partners 1110 Douglas Avenue, Suite 2040 Altamonte Springs, FL 32714 Lucas Clermont Limited Partnership 209 E. State Street Columbus, OH 43215 Sprint -Florida Incorporated P.O. Box 12913 Shawnee Mission, KS 66212 Levitt Homes, Inc. 7777 Glade Rd, Suite 410 Boca Raton, FL 33434 Florida Power Corporation P.O. Box 14042 St. Petersburg, FL 33733 Village at East Lake Ltd Partnership P.O. Box 560807 Dallas, TX 75356 Hurtak Family Partnership, Ltd. 525 NE 58th Street Miami, FL 33137 Mercator Properties, Inc. 230 Mohawk Rd. Clermont, FL 34711 TABLE 9 PERCENTAGE ASSESSED OF TOTAL VALUATION ASSESSED AS OF 1/1/01 VALUATION $11,305,592 2.51 % 10,640,645 2.36% 8,522,803 1.89% 6,160,804 1.37% 7,668,665 1.70% 6,961,428 1.55% 5,918,143 1.31 % 5,833,426 1.29% 5,409,172 1.20% 5,331,158 1.18% TOTAL $73,751,836 Source: 2001 City of Clermont Tax Roll, prepared by the Lake County Property Appraiser's office. 16.37% C-16 CITY OF CLERMONT, FLORIDA EMPLOYER South Lake Hospital Lake County School System Westminister Care of Clermont City of Clermont CBS Builders Supply Inc. Publix Rolling Hills Ford Exceletech, Inc. KMart Sonny's Real Pit Bar-B-Q LARGEST EMPLOYERS INDUSTRY Health Care Education Retirement and Nursing Municipality Construction Supplies Grocery Automobile Dealer Steel Fabrication/Erection Retail Restaurant TABLE 10 NUMBER OF EMPLOYEES 454 346 160 140 110 77 76 70 70 52 C-17 CITY OF CLERMONT, FLORIDA SCHEDULE OF INSURANCE COVERAGES SEPTEMBER 30, 2001 POLICY EXPIRATION TYPE OF COVERAGE & INSURER NUMBER DATE LIABILITY Florida Municipal Liability FMIT 101 9/30/01 Self Insurer's Program WORKERS COMPENSATION Florida Municipal Self FMIT 101 9/30/01 Insurers Fund FIRE AND EXTENDED COVERAGE Florida Municipal Property FMIT 101 9/30/01 Self -Insurers Program C-18 TABLE 11 DETAILS LIMITS General Liability $100,000/Person Bodily Injury Liability $200,000/Occurrence Auto Liability Law Enforcement Liability Specific Excess Liability $1,500,000/Occurrence Public Officials Errors $1,500,000/Occurrence and Omissions Liability Finance Director -Bond $100,000 Public Employees Blanket Bond $5,000 Accidental Death-Police/Fire $50,000 Statutory Workers Compensation $100,000/500,000 per Schedule Blanket Building and Property $21,604,427 C-19 CITY OF CLERMONT, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 2001 TABLE 12 Date of Incorporation 1916 Present Charter Adopted 1962 Form of Government Council -Manager Number of Council Members Five (5) Term of Office Mayor/Council Members Two Years (2) City Manager Appointed Area of City Municipal Boundaries 11.29 square miles Miles of Streets 77 Number of Streetlights 875 Cemetery 1 Fire Protection Number of Stations 2 Number of Volunteer Firefighters 34 Number of Full-time Firefighters 11 Number of Fire Hydrants 840 Police Protection Number of Stations 2 Number of Sworn Personnel 27 Education Number of Schools: Elementary 3 Middle 1 9th Grade Center 1 Number of Teachers 211 Number of Students 4,500 Municipal Water Department Number of Customers 7,882 Average Daily Consumption 3,740,263 gallons Miles of Water Mains 112 Wastewater and Sanitary Sewers Miles of Sanitary Sewer Lines 34 Miles of Storm Sewer Lines 8.5 C-20 Recreation and Culture Number of Parks Scenic Linear Trail Fishing Piers Number of Libraries City Employees Full -Time Part -Time 22 with 109.4 acres 3.5 miles 4 140 6 C-21 I OTHER REPO it 1� 11 CLERMONT OFFICE Jerry D. Brown, C.P.A. Herbert John Greenlee, Jr., C.P.A. Suzanne M. Wolfe, C.P.A. GREENLEE KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS MOUNT DORA OFFICE 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. Keire Rice Hosley, C.P.A. David S. McDonald, C.P.A. REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and City Council City of Clermont, Florida We have audited the general purpose financial statements of the City of Clermont, Florida as of and for the year ended September 30, 2001, and have issued our report thereon dated January 30, 2002. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovernmentAuditing 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 Re ortin 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 D-1 627 N. Donnelly Street P.O. Box 120400 • Clermont, FL 34712-0400 P.O. Box 8 • Mount Dora, FL 32756-0008 (352) 394-3256 • Fax (352) 394-6910 (352) 383-6300 • Fax (352) 383-6356 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. Wzw,�,7,� //z�� At�� AN Mount Dora, Florida February 19, 2002 D-2 CLERMONTOFFICE Jerry D. Brown, C.P.A. Herbert John Greenlee, Jr., C.P.A. Suzanne M. Wolfe, C.P.A. / GREENLEE KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT LETTER The Honorable Mayor and City Council City of Clermont, Florida MOUNT DORA OFFICE 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. Keire Rice Hosley, C.P.A. David S. McDonald, C.P.A. This report contains our comments as required by Chapter 10.554(1)(g), Rules of the Auditor General, Local Governmental Entity Audits, for the City of Clermont, Florida, for the year ended September 30, 2001. Subparagraph (1) 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 (1)(a) refers to whether inaccuracies, irregularities, or violations of laws, regulations or contract provisions reported in the preceding annual financial audit have been corrected. There were no such findings in the preceding annual financial audit. Subparagraph (1)(b) refers to whether recommendations made in the preceding annual audit have been followed. There were no recommendations offered in the prior audit. Subparagraph (2) refers to the City's investments. The City complied with Florida Statutes 218.415 in its investing of public funds. Subparagraph (3) refers to recommendations to improve the City's accounting procedures and internal controls. We offer no recommendations in this area. Subparagraphs (4)(a)(b) and (c) refer to illegal or improper expenditures discovered within the scope of the financial audit as well as 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. Subparagraph (5) 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 MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS D-3 605 Montrose Street 627 N. Donnelly Street P.O. Box 120400 • Clermont, FL 34712-0400 P.O. Box 8 • Mount Dora, FL 32756-0008 (352) 394-3256 • Fax (352) 394-6910 (352) 383-6300 • Fax (352) 383-6356 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. Subparagraph (6)(a) refers to the City's being in a state of financial emergency as described in Section 218.503(1), Florida Statutes. While the group self-insurance fund has experienced deficit retained earnings for two years, the City's general fund resources are adequate to cover the deficits. The City may either increase the "premium" charged to the others funds or make a residual equity transfer. Subparagraph (6)(b) refers to the agreement of the financial report filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes with the annual financial audit report. For the year ended September 30, 2001, the financial report was in agreement in all respects. Subparagraph (6)(c) refers to the auditor's application of financial condition assessment procedures pursuant to Rule 10.556(8). No deteriorating financial conditions were noted. 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 January 30, 2002. 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. zd e P. Clermont, Florida February 19, 2002 RII