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�- CLERWONT
Choice of Champion`
Downtown Streetscape
Phase 1
Downtown Streetscape is the final project in the City of
Clermont's Downtown Master Plan that was adopted and rolled
out in 2015.
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The project was designed to enhance the look of Downtown
Clermont by replacing the existing asphalt on three streets with
brick pavers.
The scope of the work was extended to include upgrading
underground utilities, increasing lighting, adding event power,
enhancing landscape and adjusting parking.
The $12-million project was scheduled to be constructed in three
phases to minimize inconveniences to businesses, customers
and visitors, keep traffic flowing, facilitate parking and maintain
fire protection during construction.
Phase 1 featured improvements to West Avenue and Osceola
Street and brick pavers were installed on Osceola Street between
7th Street and West Avenue. The work was completed in the fall of
2021.
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CITY OF CLERMONT
FLORIDA
Annual Comprehensive Financial Report
For The Year Ended September 30, 2021
Ne
ONT�CLEF _�oice of Champio
Prepared by:
Finance Department
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City of Clermont, Florida
Table of Contents
Page
Introductory Section
Letter of Transmittal 3
GFOA Certificate ofAchievementfor Excellence in Financial Reporting 8
Organization Chart 9
List of Elected and Appointed Officials 10
Financial Section
Independent Auditor's Report
13
Management's Discussion and Analysis
17
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
29
Statement of Activities
30
Fund -Financial Statements:
Balance Sheet- Governmental Funds
31
Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds
32
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
33
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
General Fund
34
Statement of Revenues, Expenditures, and Cahnges in Fund Balance - Budget and Actual -
Infrastructure Special Revenue Fund
37
StatementofNetPosition - Proprietary Funds
38
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds
41
Statement of Cash Flows - Proprietary Funds
42
Statementof Fiduciary Net Position - Fiduciary Funds
44
Statementof Changes in Fiduciary Net Position - Fiduciary Funds
45
Notes to the Financial Statements
49
Required Supplementary Information:
Schedule of Changes in Net OPEB Liability and Related Ratios
85
Schedule of Changes in Net Pension Liability and Related Ratios - General Employees
86
Schedule of Changes in Net Pension Liability and Related Ratios - Police
87
Schedule of Changes in Net Pension Liability and Related Ratios - Fire
88
Schedule of Contributions and Investment Returns - General Employees
89
Schedule of Contributions and Investment Returns - Police
90
Schedule of Contributions and Investrnent Returns - Fire
91
Combining and Individual Fund Statements and Schedules:
Major Governmental Funds
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Capital Projects Fund
96
Nonmajor Governmental Funds
Combining Balance Sheet- Other Governmental Funds
98
Combining Statementof Revenues, Expenditures, and Changes in Fund Balance - Other
Governmental Funds
100
City of Clermont, Florida
Table of Contents
Page
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Recreation Impact Fee Special Revenue Fund 102
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Police Impact Fee Special Revenue Fund 103
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Fire Impact Fee Special Revenue Fund 104
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Building Services Special Revenue Fund 105
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Community Redevelopment Special Revenue Fund 106
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Cemetery Special Revenue Fund 107
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
ARPA Special Revenue Fund 108
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Debt Service Fund 109
Fiduciary Funds
Combining Statement of Fiduciary Net Position - Fiduciary Funds 111
Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds 112
Statistical Section
Financial Trends:
Net Position by Component
116
Changes in Net Position
118
Fund Balance - Governmental Funds
122
Changes in Fund Balances - Governmental Funds
124
Revenue Capacity:
Governmental Activities Tax Revenues by Source
126
Assessed Value and Estimated Actual Value of Taxable Property
127
Property Tax Rates - Direct and Overlapping Governments
128
Principal Property Taxpayers
129
Property Tax Levies and Collections
130
Debt Capacity:
Ratios of Outstanding Debt by Type
131
Direct and Overlapping Governmental Activities by Debt
132
Pledged -Revenue Coverage
133
Demographic and Economic Information:
Demographic and Economic Statistics
138
Principal Employers
139
Principal Water Customers
140
Principal Sewer Customers
141
Operating Information:
Full-time Equivalent City Government Employees by Function
142
Operating Indicators by Function
144
Capital Asset Statistics by Function
146
City of Clermont, Florida
Table of Contents
Page
Other Reports
Independent Auditor's Reporton Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 151
Independent Auditor's Reporton Compliance for Each Major Federal Proram and Reporton
Internal Control Over Compliance in Accordance with the Uniform Guidance 153
Schedule of Expenditures of Federal Awards 155
Notes to Schedule of Expenditures of Federal Awards 156
Schedule of Findings and Questioned Costs 157
Management Letter 158
Independent Auditor's Report on Compliance with the Requirements of Section 218.415, Florida
Statutes 160
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INTRODUCTORY SECTION
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f
ALE
Choice of Champions -
April 21, 2023
Honorable Mayor Tim Murry,
Council Members and Citizens of the City of Clermont, Florida
BRIAN M. BULTHUIS
CITY MANAGER
352-241-7358
BBulthuis@Clermontfl.org
Dear Mayor Murry, Council Members and the Citizens of the City of Clermont, Florida:
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Clermont,
Florida, for the fiscal year ended September 30, 2021. State law requires that every general-purpose
local government publish each fiscal year a complete set of audited financial statements. This report is
published to fulfill that requirement for the fiscal year ended September 30, 2021.
Management assumes full responsibility for the completeness and reliability of the information presented
in this report. To provide a reasonable basis for making these representations, management of the City
of Clermont has established a comprehensive internal control framework that is designed both to protect
the government's assets from loss, theft or misuse and to compile sufficient reliable information for the
preparation of the City of Clermont's financial statements in conformity with Generally Accepted
Accounting Principles in the United States of America (GAAP). Because the cost of internal controls
should not exceed anticipated benefits, the City of Clermont's comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Clermont's financial statements have been audited by McDirmit Davis & Company, LLC; a
firm of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City of Clermont for the fiscal year ended
September 30, 2021 are free of material misstatement. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditor concluded, based upon the audit, that there
was a reasonable basis for rendering an unmodified opinion that the City of Clermont's financial
statements for the fiscal year ended September 30, 2021 are fairly presented in conformity with GAAP.
The independent auditor's report is presented as the first component of the financial section of this
report.
Management Discussion and Analysis (MD&A) immediately follows the independent auditor's report and
provides narrative introduction, overview and analysis of the basic financial statements. The MD&A
provides "financial highlights" and interprets the financial reports by analyzing trends and by explaining
changes, fluctuations and variances in the financial data. In addition, the MD&A is intended to disclose
685 W. Montrose Street • Clermont, FL 34711 . www.ClermontFL.gov
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any known significant events or decisions that affect the financial condition of the City. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it.
Profile of the City of Clermont
The City was founded in 1884 and incorporated in 1916. The City currently has a land area of 19.2
square miles and a population of approximately 44,687. The City is located in south Lake County,
approximately 22 miles west of the City of Orlando and about 25 miles northwest of Walt Disney World.
Clermont, known as "Choice of Champions®", is truly the crossroads of Florida, at the intersection of
State Road 50, which runs east and west across the state, and U.S. Highway 27, which runs north and
south through the center of the state.
Clermont is on a chain of 15 lakes connected by the winding Palatlakaha River in the Ocklawaha Basin
of tributaries of the St. Johns River, the only river system in the United States that flows north. The lakes
offer residents the opportunity for excellent fishing, boating, swimming and other water sports, including
competitive rowing, skiing and wakeboarding offered by world -class instructional schools. The City of
Clermont is known for its scenic beauty, relaxed lifestyle, recreational facilities and temperate climate.
Residents have a wide variety of housing and property -ownership opportunities, including lakefront and
lake -access property, golf -course communities, homes in existing neighborhoods, residential retirement
communities and new subdivisions.
The City of Clermont provides a full range of services as directed by its charter. These include police and
fire protection, street and sidewalk maintenance, planning and development, code enforcement,
recreational facilities and programs, cemetery and general administrative functions. The City also
provides potable water, wastewater collection and treatment, reclaimed water production and distribution,
stormwater treatment, solid waste collection and recycling services.
The City operates according to a Council/Manager form of government, with an appointed City Manager,
four elected City Council members and an elected Mayor. The governing body has legislative
responsibilities, including setting policy, passing ordinances, adopting the budget, appointing committees
and hiring the City Manager. The City Manager is responsible for carrying out the policies and
ordinances of the governing body, overseeing the day-to-day operations of the government and hiring
the directors of the various departments.
The annual budget serves as the foundation for the City of Clermont's financial planning and control. All
departments of the City of Clermont are required to submit requests for appropriations to the City
Manager. The City Manager then uses these requests as the starting point for developing a proposed
budget. The City Manager then presents this proposed budget to the Council for review. The City Council
is required to hold public hearings on the proposed budget and to adopt a final budget by no later than
September 30, the close of the City of Clermont's fiscal year. The appropriated budget is prepared by
fund (e.g. general fund), and department (e.g. police department). The City Manager may make transfers
of appropriations within departments; however, any revisions that alter the total appropriations of a
department must be approved by City Council. Original and final amended budget -to -actual comparisons
are provided in this report for each individual governmental fund.
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City of Clermont operates.
685 W. Montrose Street . Clermont, FL 34711 + www.ClermontFL.gov
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Local Economy
The City of Clermont is essentially residential in character and its economy is centered in retail, real
estate, personal services and healthcare. During the last 5 years, Clermont's population has increased
by 8,880 residents or 24.80%. Clermont's economic factors for FY 2021 indicated recovery of impacts
from the pandemic in both unemployment and per capita personal income levels, both of these areas
have moved in a favorable direction. The per capita personal income levels have increased $1,113 or
3.7% over the last 5 years. The City's unemployment rate also has increased from 3.1 % to 3.7% over the
last 5 years, this rate continues to be below the county, state and national averages. Educational
institutions in Clermont, such as Lake -Sumter State College, St. Leo University and the University of
Central Florida, assist in supplying a skilled labor force. One of the highlighted areas of change has been
the increase in property values; this year had a 9.98% increase in taxable property values. Primarily due
to this increase in property values, Clermont's property tax-millage rate of 4.2061 continues to be among
the lowest of other comparable cities in the Central Florida region.
The cost of living for the region is below the national average. There is no personal income tax, either
locally or statewide. Sales tax, currently at 7%, is not charged on food or medicine. One cent of the sales
tax charged within the county is limited to $50 per transaction (1 % of $5,000). As discussed in the
MD&A, this additional penny sales tax must be used for infrastructure including roads, buildings, land,
land improvements and certain equipment.
Long-term Financial Planning
The City uses an extensive water and sewer master plan to manage growth in the water and sewer utility
systems. The plan outlines water and sewer line size requirements for planned development with rough
cost estimates. The plan also has benchmarks for plant expansions and additional well requirements.
The Clermont City Council and management, through careful short- and long-range planning and sound
management practices, are committed to budgeting and managing all resources in the most cost-
effective manner. The City adopts a Five -Year Capital Plan as part of the annual budget process. The
Capital Plan is a multi -year prioritized schedule that identifies future capital outlay by the year it is
intended to be purchased or commenced, the amount to be spent per year, and the funding source.
Relevant Financial Policies
The City regularly reviews revenues and expenditures throughout the fiscal year. Quarterly budget
reports are prepared and presented to the City Council. The reports show budget -to -actual for the city's
top 10 revenues, total fund revenues, total fund expenditures, departmental expenditures and various
department performance indicators. Through this process, if actual revenues are expected to fall short of
the budgeted amount, expenditures are reduced to ensure that a shortage of funds or a significant use of
fund balance does not occur.
685 W. Montrose Street • Clermont, FL 34711 * www.ClermontFL.gov
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Major Initiatives
The completion of several capital projects included in the award -winning Downtown Waterfront Master
Plan continues to be the major emphasis of the City. The Master Plan offers an exciting view of the future
of Clermont and how to protect the very charms that have drawn hundreds of thousands to this
internationally recognized city that is one of the nation's top places to live, as well as a training ground for
the world's elite athletes. The following capital projects are included in the Master Plan and are expected
to be completed within the next two years. The listed projects below are being funded primarily from
several grants and a loan. It is important to note that no General Fund reserves are being used to fund
the construction of these projects.
The Downtown Waterfront District area includes Montrose Street, Minneola Street and
Osceola Street between 7th and 8th streets. The proposed improvements consist of
streetscapes, landscaping, bathrooms, lighting, upgrades for event lighting and music, banners
and beautification. A focal point will be created at City Hall Park to anchor downtown visitors,
creating a destination and meeting point in the heart of downtown Clermont. In addition, the
city plans to demarcate the halfway point of the Coast -to -Coast Trail. Phase one of the project
was completed in 2021. Phase two of the project is under construction with expected
completion in 2022. Phase three design is underway with construction starting in 2022. The
total project is anticipated to cost approximately $17 million.
• The Public Services Facility Relocation project involves the expansion and relocation of the
existing antiquated facility. The new facility is proposed to be relocated to the Hancock Road
corridor, an area that will allow for a larger, more centralized Public Services Facility. The land
acquisition has been completed and is currently in the final design phase with bidding and
construction to follow. The project is anticipated to cost approximately $12 million.
In addition to the Master Plan projects there is a major Utility Projects underway.
The Wastewater Treatment Facility Expansion project is required in order to meet the
increased demand generated within the service area. The project is currently in the design
phase to take the facility from the existing permitted capacity of 4 MGD to 6.5 MGD with the
design portion anticipated to be complete in late 2022 followed by construction starting during
the spring of 2023. This project will not only allow the facility to maintain regulatory compliance,
it will also allow the City to continue the history of responsibly utilizing water resources by
expanding the volume of effluent that can be produced for public access reuse. This project
has an estimated cost of $50 million.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Clermont for its
comprehensive annual financial report for the fiscal year ended September 30, 2020. This was the 33rd
consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
685 W. Montrose Street • Clermont, FL 34711 www.ClermontFL.gov
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A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
Credit must be given to the Mayor and the City Council for their support in maintaining the highest
standards of professionalism in the management of the City of Clermont's finances. The preparation of
this report would not have been possible without the efficient and dedicated services of the staff in the
City Manager's Office and Finance Department. We would like to express our appreciation to all
members of these departments who assisted and contributed to the preparation of this report.
Respectfully submitted,
Brian M. Bulthuis Pamela M. Brosonski
City Manager Finance Director
685 W. Montrose Street . Clermont, FL 34711 www.ClermontFL.gov
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Clermont
Florida
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2020
Executive Director/CEO
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Citizens of
Clermont
City Council
City
Attorney
City Manager
Economic
Development
Building
cl
Finance
re
Human
esourcE
Committees
Public
Information
Parks and
Recreation
Planning and
Development
Police
Public
Service
Information
Technology
Procuremen
k Services
City of Clermont, Florida
List of Elected and Appointed Officials
For the Fiscal Year Ended September 30, 2021
Elected Officials
Tim Murray
Mayor
Timothy Bates
Mayor Pro- Tem
Ebo Entsuah
Council Member
Appointed Officials
Scott Davidoff
Acting City Manager
Vacant
Assistant City Manager
Dan Mantzaris
City Attorney
Tracy Ackroyd Howe
City Clerk
Vacant
Communications Director
Lisa Widican
Building Services Director
Curt Henschel
Planning & Development Services Director
Pam Brosonski
Finance Director
Jim Purvis
Council Member
Michele Pines
Council Member
David Ezell
Fire Chief
Nadine Ohlinger
Human Resources Director
Wayne Fountain
Interim Information Technology Director
Chris Dudeck
Interim Parks and Recreation Director
Charles Broadway
Police Chief
Stoney Brunson
Public Works Director
Freddy Suarez
Purchasing Director
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FINANCIAL SECTION
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Page112
I 1
McDirmit Davis
I MJ
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Clermont, Florida
934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Clermont, Florida, as of and for the year ended September 30,
2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in
the table of contents.
Management's Responsibility for the Financial Statements
City of Clermont's management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly,
we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of
Clermont, as of September 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and
the respective budgetary comparison for the General Fund, and Infrastructure Special Revenue Fund for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
the trusted partner
Page113
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis,
the pension and other postemployment benefits disclosures on page 17 through 26 and 85 through 91 be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of
the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of ClermonYs
basic financial statements. The introductory section, combining and individual fund financial statements and schedules, statistical
section and the Schedule of Expenditures of Federal Awards (the Schedule) as required by the audit requirements of Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance), are presented for purposes of additional analysis and are not a required part of the financial
statements.
The combining and individual nonmajor fund financial statements and schedules, and the Schedule are the responsibility of
management and were derived from and related directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated April 21, 2023 on our consideration of City
of ClermonYs internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering City of Clermont's internal control over financial reporting and compliance.
Orlando, FL
April 21, 2023
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MANAGEMENT'S DISCUSSION AND
ANALYSIS
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City of Clermont, Florida
Management's Discussion and Analysis
As management of the City of Clermont, Florida we offer readers of the City of Clermont's (the City) financial statements this narrative
overview and analysis of the financial activities of the City of Clermont for the fiscal year ended September 30, 2021. We encourage
readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found on pages 3 through 7 of this report.
Financial Highlights
• The City of Clermont's assets and deferred outflows of resources exceeded its liabilities and deferred inflows at September
30, 2021 by $230,847,935 (net position). Of this amount, $50,402,090 (unrestricted net position) may be used to meet the
City's ongoing obligations to citizens and creditors.
• The City's total net position increased by $29,216,110 (or 14%) during fiscal year 2021 primarily due to an increase in total
revenues. The most significant revenue factor is within "Capital Grants and Contributions" for business -type activities,
which increased from $6.61VI in FY20 to $22.1 M in FY21. This is largely due to the dedication of infrastructure to the City
by developers.
• At September 30, 2021, the City of Clermont's governmental funds reported combined ending fund balances of $39,586,254
an increase of $188,843 from the previous fiscal year. Of this amount $11,616,852 (unassigned fund balance) is available for
spending at the government's discretion.
• The General Fund, the City's primary operating fund, reported an unassigned fund balance of $11,616,852, which represents
33.9% of total General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Clermont's basic financial statements. The City's
basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements,
and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a broad overview of the City of Clermont's financial
position, in a manner similar to a private -sector business. They include a Statement of Net Position and a Statement of Activities. These
statements appear on pages 29 and 30 of the report.
The Statement of Net Position presents information on all of the City's assets and liabilities and deferred inflows/outflows of resources,
with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether
the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Clermont that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of
their costs through user fees and charges (business -type activities). The governmental activities of the City of Clermont include general
government, public safety, physical environment, transportation, economic environment, and culture and recreation. The business -type
activities of the City of Clermont include water, sewer, sanitation, and stormwater utilities.
The government -wide financial statements include only the City of Clermont itself (known as the primary government) and one blended
component unit (The City of Clermont Community Redevelopment Trust Fund).
Fund financial statements.
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities
or objectives. The City of Clermont, like other state and local governments, uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements. All of the funds of the City of Clermont can be divided into three categories: governmental funds,
proprietary funds and fiduciary funds.
Page117
City of Clermont, Florida
Management's Discussion and Analysis
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide
financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -
term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating the City's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government -wide
financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in
fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Clermont maintains eleven individual governmental funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund,
Capital Projects Fund, and Infrastructure Fund, which are considered to be major funds. Data from the other eight governmental funds
are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in
the form of combining statements elsewhere in this report.
The City of Clermont adopts an annual appropriated budget for all of its governmental funds. Budgetary comparison statements have
been provided for the General Fund (pages 34 - 35), and the Infrastructure Fund (page 37) to demonstrate compliance with budgets.
Other major and nonmajor funds comparisons can be found beginning on page 96.
The basic governmental fund financial statements can be found on pages 31 - 37 of this report.
Proprietary Funds
The City of Clermont maintains two types of proprietary funds: enterprise and internal service, which can be found on pages 38 - 43 of
this report.
Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial
statements. The City of Clermont uses enterprise funds to account for water, sewer, sanitation and stormwater utilities. Internal service
funds are an accounting tool used to accumulate and allocate costs internally among various functions. The City utilizes an internal
service fund for its health insurance. Because services accounted for in the internal service fund predominately benefit governmental
rather than business -type functions, it has been included within the governmental activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary
fund financial statements provide separate information for water, sewer, sanitation, and stormwater which are all considered to be major
funds.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected
in the government -wide financial statements because the resources of those funds are not available to support the City of Clermont's
own programs. The accounting used for fiduciary funds is much like that used for the proprietary funds.
The basic fiduciary fund financial statements can be found on pages 44 - 45 of this report.
Notes to the Financial Statements.
The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund
financial statements. The notes to financial statements can be found on pages 49 - 81 of this report.
Other Information.
The combining statements referred to earlier in connection with other governmental and proprietary funds are presented immediately
following the notes to the financial statements. Combining and individual fund statements and schedules can be found on pages 96 -
112 of this report.
Page118
City of Clermont, Florida
Management's Discussion and Analysis
Government -Wide Financial Analysis
The following is a summary of the City's net position for governmental and business -type activities for the current year as compared to
the prior year. For more detail see the Statement of Net Position.
Net Position
Governmental Activities Business -type Activities
2020.21 2019-20 2020.21 2019-20
Assets:
Current and other assets
$55,105,444
$48,259,851
$ 61,898,408
$ 59,233,295
Capital assets
79,192,866
73,844,788
100,421,095
82,418,678
Total assets
134,298,310
122,104,639
162,319,503
141,651,973
Deferred Outflows of Resources:
Deferred outflow of pension and OPEB earnings
5,199,860
5,838,788
445,423
544,970
Deferred charge of refunding
-
-
726,167
806,851
Total deferred outflows of resources
5,199,860
5,838,788
1,171,590
1,351,821
Liabilities:
Long-term liabilities outstanding 39,344,826 40,889,219
Other liabilities 4,439,101 3,469,782
Total liabilities 43,783,927 44,359,001
Deferred Inflow of Resources:
Deferred inflow of pension and OPEB earnings 7,361,151 3,185,495
Net investment in capital assets 51,595,557 44,045,257
Restricted 14,910,765 12,479,307
Unrestricted 21,846,770 23,874,367
Total net position $ 88,353,092 $ 80,398,931
18,748,695 19,750,335
2,175,846 1,927,617
20,924,541 21,677,952
Total
2020.21 2019.20
$117,003,852 $107,493,146
179,613, 961 156, 263,466
296,617,813 263,756,612
5,645,283 6,383,758
726,167 806,851
6,371,450
7,190,609
58,093,521
60,639,554
6,614,947
5,397,399
64,708,468
66,036,953
71,709 92,948 7,432,860 3,278,443
88,519,639 68,309,917
25,419,884 24,194,900
28,555,320 28,728,077
$142,494,843 $121,232,894
140,115,196 112,355,174
40,330,649 36,674,207
50,402,090 52,602,444
$ 230,847,935 $ 201,631,825
The City's total net position at September 30, 2021 was $230,847,935.Of the City's total net position $140,115,196 (60.7%) reflects its
investment in capital assets (e.g., land, buildings, improvements, infrastructure and equipment) less any related debt used to acquire
those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are
not available for future spending. Although the City of Clermont's investment in its capital assets is reported net of related debt, it should
be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot
be used to liquidate these liabilities.
An additional portion of the City's total net position, $40,330,649 (17.5%) represents resources that are subject to external restrictions
on how they may be used. The remaining balance of the City's total net position, $50,402,090 (21.8%) is unrestricted. These assets
may be used at the City's discretion in meeting its ongoing obligations to citizens and creditors.
The City's net position increased by $29,216,110 during the current fiscal year. Major components of this increase are discussed in the
Governmental and Business -Type Activities sections to follow. Restricted reserves represent the accumulation of impact fee funds for
upcoming and ongoing capital projects.
The following is a summary of the City's governmental and business -type activities for fiscal year 2020-21, including revenues and
expenses, with a comparison to the prior year. For more detail see the Statement of Activities.
Page119
City of Clermont, Florida
Management's Discussion and Analysis
Changes in Net Position
Governmental Activities
Business -type Activities
Total
2020-21
2019-20
2020-21
2019-20
2020.21
2019-20
Revenues:
Program revenues -
Chargesforservices
$ 8,346,718
$ 7,319,562
$ 22,107,572
$ 20,461,143
$ 30,454,290
$ 27,780,705
Operating grants and contributions
2,025,523
3,307,146
-
583
2,025,523
3,307,729
Capital grants and contributions
2,205,531
625,000
22,093,775
6,574,550
24,299,306
7,199,550
General revenues -
Property Taxes
14,353,854
13,089,628
-
-
14,353,854
13,089,628
Business Taxes
143,984
161,849
143,984
161,849
Franchise Fees
3,360,139
3,202,523
3,360,139
3,202,523
Utility Taxes
4,466,642
4,201,714
4,466,642
4,201,714
Intergovernmental
9,969,074
8,403,161
-
-
9,969,074
8,403,161
Investment income and miscellaneous
791,253
1,255,270
106,161
953,526
897,414
2,208,796
Gain on sale of capital assets
-
-
40,066
28,679
40,066
28,679
Total revenues
45,662,718
41,565,853
44,347,574
28,018,481
90,010,292
69,584,334
Expenses:
General government
5,918,171
5,677,795
-
-
5,918,171
5,677,795
Public safety
23,712,850
22,732,773
23,712,850
22,732,773
Physical environment
2,763,287
2,470,157
2,763,287
2,470,157
Transportation
2,264,129
1,843,193
2,264,129
1,843,193
Economic environment
665,094
846,818
665,094
846,818
Culture and recreation
4,044,169
3,722,518
4,044,169
3,722,518
Interest on long-term debt
686,929
752,672
686,929
752,672
Water
-
-
7,109,563
6,424,688
7,109,563
6,424,688
Sewer
8,172,055
7,741,759
8,172,055
7,741,759
Sanitation
3,467,370
3,293,726
3,467,370
3,293,726
Stormwater
-
-
1,990,565
1,900,908
1,990,565
1,900,908
Total expenses
40,054,629
38,045,926
20,739,553
19,361,081
60,794,182
57,407,007
Increase (Decrease) in Net Position Before
Transfers
5,608,089
3,519,927
23,608,021
8,657,400
29,216,110
12,177,327
Transfers
2,346,072
2,177,240
(2,346,072)
(2,177,240)
-
-
Increase in Net Position
7,954,161
5,697,167
21,261,949
6,480,160
29,216,110
12,177,327
NetPosition- Beginning
80,398,931
74,701,764
121,232,894
114,752,734
201,631,825
189,454,498
NetPosition- Ending
$88,353,092
$80,398,931
$142,494,843
$121,232,894
$230,847,935
$201,631,825
Governmental Activities
Governmental activities increased the City of Clermont's net position by $7,954,161. The increase in governmental activity net
position is due to the growth of revenues exceeding growth in expenses. While revenues increased 9.9% to $45.6 million, expenses
increased at a 5.3% rate to $40.1 million. Revenues growth is primarily due to additional residents, increasing property valuations,
and higher retail activity as opposed to rate increases. For instance, the Total Taxable Assessed Value of property increased 9.9%
or $311 million in FY21, while the city's millage rate remained the same. This led to an increase in receipts of nearly $1.3 million.
In another example, intergovernmental revenues - such as sales tax and state revenue sharing - increased by $1.5 million.
Page 120
City of Clermont, Florida
Management's Discussion and Analysis
The intergovernmental revenues category was also partially impacted by increases in some state revenues, as FY2020 had lower
amounts due to the COVID pandemic. Similarly, a portion of the increase in "Charges for Services" within governmental activities
can be attributed to the return of revenue from recreation rental and performing arts show revenues post-COVID, as the facilities
were closed during a part of FY2020,
The following graph is a comparison of program revenues and program expenses for all governmental activities. This chart is intended
to give the reader an idea of the degree to which governmental activities are self-supporting.
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Expenses and Program Revenues - Governmental Activities
generaInteres
l government Public Safety Transportation/public woirkse & recreation Physical environment and oth on bng_term debt
er
The following pie chart illustrates the composition of governmental activities revenue and its percent in relation to total governmental
activities revenues.
Revenues by Source - Governmental Activities
■ Intergovernmental ■ Charges for services Operating grants and contributions
■ Investment income and miscellaneous ■ Other taxes Capital grants and contributions
Property taxes
Property taxes, 31.z
Capital grants and
contributions, 4.8%
Other taxes, 17
v Nciaung gianw aiiu
miscellaneous, 1.7% contributions, 4.4%
Intergovernmental, 21.8%
-ges for services,
18.3
Page 121
City of Clermont, Florida
Management's Discussion and Analysis
Business -Type Activities
Business -type activities increased the City of Clermont's net position by $21,261,949. This change is primarily due to increased revenue
from services, and capital contributions.
The following graph is a comparison of program revenues and program expenses for all business -type activities. This chart is intended
to give the reader an idea of the degree to which business -type activities are self-supporting.
$20,000,000
$18, 000,000
$16, 000,000
$14,000,000
$12,000,000
$10, 000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Expenses and Program Revenues - Business Type Activities
Water Sewer Sanitation Stormwater
The following pie chart illustrates the composition of business -type activities revenue and its percent in relation to total business -type
activities revenues.
Revenues by Source - Business Activities
■ Investment income and miscellaneous ■ Operating grants and contributions
❑ Charges for Services ■ Capital Grants and Contributions
Capital Grants and
Contributions, 49.8%
L
Charges for Services,
49.9%
Investment income and
miscellaneous , 0.3%
Operating grants and
contributions, 0.0%
Page 122
City of Clermont, Florida
Management's Discussion and Analysis
Financial Analysis of the City's Funds
As noted earlier, the City of Clermont uses fund accounting to ensure and demonstrate compliance with finance -related
requirements.
Governmental Funds.
The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable
resources. Such information is useful in assessing the City of Clermont's financing requirements. In particular, unassigned fund
balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
As of September 30, 2021, the City of Clermont's governmental funds reported combined ending fund balances of $39,586,254 an
increase of $188,843 in comparison with the prior year. This increase is primarily due to impact fee collections tied to new
development in the City. Of the governmental funds combined ending fund balances, $11,616,852 (29%) represents unassigned
fund balance, which is available for spending at the City's discretion. An additional $12,605,324 (assigned fund balance) has been
set aside for planned master plan project expenditures. Restricted fund balances totaling over $14.9 million include funds required
for debt service, as well as funds collected for specific purposes such as impact fees and community redevelopment. The remainder
of fund balance is nonspendable ($466,608) to indicate that it is not available for spending because it has already been committed
for prepaids and inventories.
The General Fund is the chief operating fund of the City of Clermont. As of September 30, 2021, the fund balance in the General
Fund was $13,908,158 an increase of $2,106,698 primarily from an increase in revenues; property taxes, franchise fees, licenses
and permits, and charges for services all surpassed the 2020 amounts. The change in fund balance was more than the anticipated
amount of the original budget by $3,986,837 and $5,170,243 more than the revised budget. Revenues were more than budgeted
by $3,697,400, due to increases in intergovernmental, this was due to lower state projection on sales and gas taxes based on the
declines from COVID-19 in the prior year. Departmental expenditures came in less than anticipated resulting in no use of reserves
in 2021. Of the total fund balance in the General Fund, $11,616,852 (83.5%) is unassigned fund balance. As a measure of the
General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 33.9% of total General Fund expenditures, while total fund balance represents
40.6% of that same amount.
The City has a Capital Projects Fund that is considered a major fund under criteria set forth by GASB Statement No. 34. This fund
is used to account for the acquisition of capital assets or construction of major capital projects not being financed by proprietary
funds. Funds have been accumulated so projects can be completed on a pay-as-you-go basis. The fund balance in this fund
decreased by $4,260,323 in fiscal year 2021, primarily due to spending of proceeds from the Master Plan Capital Projects Revenue
Note. The most significant project was the spending of $4.4 million on a streetscape project in the downtown corridor.
The City has an Infrastructure Fund that is considered a major fund under criteria set forth by GASB Statement No. 34. This fund
was established to account for the proceeds of the Local Government Infrastructure Surtax. The proceeds and interest accrued
thereto, by law are only to be used to finance, plan and construct infrastructure. The fund balance in this fund increased by $762,024
in fiscal year 2021 primarily due to increases in sales tax collections over the expectations and reduced expenditures of equipment
and vehicle purchases due to delays on the delivery of these items.
The remainder of the change of $1,580,444 to the governmental fund balance was from the non -major governmental funds.
Recreation, Police and Fire Impact Fee fund balances combined for an increase of $1,269,322 in fiscal year 2021 primarily due to
the collection of impact fees on new development within the City. The Building Services fund balance increased $161,106 due to
revenues exceeding expenditures. The fund balances in the remaining nonmajor funds increased a total of $80,131 due to an
increase in both the cemetery and debt service funds.
Proprietary Funds
Proprietary funds are used to account for operations (a) that are financed and operated in a manner similar to private business
enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate
for capital maintenance, public policy, management control, accountability, or other purposes. The City's major proprietary funds
are water, sewer, sanitation and stormwater.
Page 123
City of Clermont, Florida
Management's Discussion and Analysis
The Water Fund accounts for the provision of potable water and reclaimed irrigation services to City and non -City residents. All
activities necessary to the provision of these services are accounted for in this fund, including, but not limited to administration,
plant and line maintenance. As of September 30, 2021, the City of Clermont's Water Fund reported total net position of
$50,697,127, an increase of $6,229,388 in comparison with the prior year. This increase in net position was due to revenues
exceeding expenses as well as the capital contributions of water impact fees on new development in the City.
The Sewer Fund accounts for the provision of sewer services to City and non -City residents. All activities necessary to the provision
of these services are accounted for in this fund, including, but not limited to administration, plant and line maintenance. As of
September 30, 2021, the City of Clermont's Sewer Fund reported total net position of $73,341,938, an increase of $10,213,480 in
comparison with the prior year. This increase in net position was primarily due to the capital contributions of sewer impact fees on
new development in the City.
The Sanitation Fund accounts for the provision of garbage and trash collection, recycling, and composting services to City
residents. All activities necessary to the provision of these services are accounted for in this fund. As of September 30, 2021, the
City of Clermont's Sanitation Fund reported total net position of $6,698,903, an increase of $395,768 in comparison with the prior
year. This increase in net position is due to net operating income.
The Stormwater Fund accounts for the management of the City's stormwater drainage system. All activities necessary to the
provision of these services are accounted for in this fund. As of September 30, 2021, the City of Clermont's Stormwater Fund
reported total net position of $11,993,886, an increase of $4,611,728 in comparison with the prior year. The decrease in net position
is primarily due to increased costs for personnel and other operating expenditures.
General Fund Budgetary Highlights
During the year, there was a $2,350,287 increase in appropriations between the original and final amended budget. Significant
components of the increase are as follows:
• $74,400 Carryover of unexpended FY20 funds for HVAC replacements.
• $194,217 for Lake Hiawatha pier replacement project.
• $53,000 for Fire Department fitness and air fill station equipment.
• $911,060 for Inter -local Agreement for disbursement of CARES Act Funds.
• $353,500 for Land and Professional Services related to Trapp land purchase.
• $150,425 for Land and Professional Services related to Campbell land purchase.
• $140,452 for Fire Station #1 roof replacement.
In addition, General Fund budgeted revenues increased by $1,166,851 between the original and final budget. Significant
components of the increase are as follows:
• $194,217 Addition of Federal Grant for Lake Hiawatha pier replacement project.
• $80,000 for Fire Department fitness and air fill station equipment & related FEMA assistance.
• $150,425 Inter -Fund Transfer for the Campbell land purchase.
• $205,814 to account for Water & Sewer Fund transfers based on actual sales.
• $139,452 Florida Municipal Insurance Trust reimbursement of Fire Station #1 roof replacement.
Considering the above noted increases in General Fund budgeted appropriations, actual expenditures were less than budgeted
by $1,954,507.
Page 124
City of Clermont, Florida
Management's Discussion and Analysis
Capital Assets
The following is a summary of the City of Clermont's capital assets, net of depreciation for governmental and business -type
activities for the current year with a comparison to the prior year. Additional information on the City of Clermont's capital assets
can be found in Note 6 of this report.
Capital Assets
(net of depreciation)
Governmental Activities
Business -type Activities
Total
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
Land
$ 25,851,030
$ 25,345,300
$ 1,511,807
$ 1,511,807
$ 27,362,837
$ 26,857,107
Buildings
18,353,736
19,052,904
835,845
873,451
19,189,581
19,926,355
Infrastructure
24,062,230
17,444,678
82,856,729
67,425,101
106,918,959
84,869,779
Machinery and Equipment
6,750,161
6,340,602
5,333,990
5,166,510
12,084,151
11,507,112
Intangibles
70,369
92,403
193,901
188,435
264,270
280,838
Construction in Progress
4,105,340
5,568,901
9,688,823
7,253,374
13,794,163
12,822,275
Total
$ 79,192,866
$ 73,844,788
$100,421,095
$ 82,418,678
$179,613,961
$156,263,466
The City of Clermont's investment in capital assets for its governmental and business -type activities as of September 30, 2021,
amounts to $179,613,961 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
improvements/infrastructure, machinery and equipment and intangibles. The total change in the City's investment in capital assets
for the current fiscal year was $23,350,495. Following are the significant capital asset events that occurred during the current fiscal
year:
• Completion of Phase 1 of the Streetscape Project, $1,347,772 was added and prior year's Construction in Progress in
the amount of $3,977,603 was moved to Infrastructure for a total project cost of $5,325,375.
• Completion of the Artwalk Project, $26,048 was added and prior year's Construction in Progress of $341,678 was
added to Infrastructure for a total project cost of $367, 726.
• Completion of the CDBG-WTR SYS, $1,023,756 was added and prior year's Construction in Progress in the amount
of $107,421 was moved to Infrastructure for a total project cost of $1,131,177.
• Addition of Crestview Roadway Phase 1 & 2 for $1,955,531.
• Two property (land) additions totaling $503,881.
• Purchase of a Street Sweeper $249,632.
• Purchase of 8 police vehicles for a total of $425,956.
• Purchase of 60 Bodywork Camera and Holsters for the Police Department $220,250.
• Purchase of 60 Self Contained Breathing Apparatus Packs & Accessories $368,778.
• Purchase of a Vacuum Truck for $418,645.
• Addition of sanitary, reclaimed, and storm water lines in Crestview totaling $2,576,570.
• Addition of sanitary, reclaimed, and storm water lines in Highland Ranch totaling $1,776,741.
• Addition of sanitary, reclaimed, and storm water lines in Hartwood Landing totaling $2,798,832.
• Lift station additions totaling $1,428,771.
• Additions to storm sewer and reclaimed lines in Lakeview totaling $2,691,540.
• Construction in progress as of September 30, 2021 includes ARC Storage Building, Fire Station #2 Expansion,
Streetscape PH 1 & PH2, Meet us in the Middle, Montrose St Improvements, Lake Hiawatha Pier Replacement, PW
Hancock Facility, John's Lake Water Main Replacement, West Side Water Loop PH2, Sunburst WTP Barrier Wall,
Asset Mgt Software, VT SCADA Conversion, John's Lake Rd Reuse, East WW Plant, Lower Floridian Aquifer
Exploratory, Cap Out -Water System, WWTF Expansion, Clermont Eastern Water Reclamation Facility Expansion,
Wellness Way, SW Master Plan — Lake Minnehaha, Lake Winona Basin Drainage, PW Facility.
Page 125
City of Clermont, Florida
Management's Discussion and Analysis
Debt Administration
The following is a summary of the City's long-term debt for governmental and business -type activity for the current year with a
comparison to the prior year. Additional information on long-term debt can be found in Note 8 of this report.
Outstanding Debt
Governmental Activities
Business -type Activities
Total
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
Revenue bonds payable
$ -
$ -
$ 9,779,000
$ 10,634,000
$ 9,779,000
$ 10,634,000
Notes payable
26,931,061
29,045,267
5,252,560
5,620,934
32,183,621
34,666,201
Capital leases
666,248
754,264
-
-
666,248
754,264
Total
$ 27,597,309
$ 29,799,531
$ 15,031,560
$ 16,254,934
$ 42,628,869
$ 46,054,465
As of September 30, 2021, total outstanding debt was $42,628,869, which includes both revenue bonds payable and notes
payable. The outstanding debt amount decreased $3,425,596 over the previous year.
Next Year's Budgets and Rates
The fiscal year 2022 budget was approved and required the use of $42,414 in reserves to balance the General Fund budget while
maintaining the same property tax millage for the seventh consecutive year. Clermont's 4.2601 millage continues to be one of the
lowest of comparable cities in the region. Property values continued to increase in fiscal year 2022 in the amount of 8.44%.
Pursuant to a utility rate study performed by a private consulting firm, the Clermont City Council adopted a resolution in December
2017 that provided for an increase to stormwater rates in January 2018. This resolution also provided for inflation based increases
to the water, sewer, stormwater, and sanitation rates every October 1st, starting October 1, 2018. The increase is based on the
Florida Public Service Commission Annual Deflator Index and are necessary, primarily to provide funding for the future planned
capital projects. The 2022 budget includes these rate increases in the Proprietary Funds.
Requests for Information
This financial report is designed to provide a general overview of the City of Clermont's finances for all those with an interest in the
government's finances. Questions concerning any of the information should be addressed to the office of the Finance Director,
City of Clermont, P.O. Box 120219, Clermont, Florida 34712.
Page 126
BASIC FINANCIAL STATEMENTS
Page 127
n
Page 128
City of Clermont, Florida
Statement of Net Position
September 30, 2021
Assets:
Cash and cash equivalents
Investments
Receivables, net
Inventories
Due from other governments
Internal balances
Prepaid costs
Restricted assets:
Cash and cash equivalents
Investments
Interest receivable
Net pension asset
Capital assets not being depreciated
Capital assets being depreciated, net of accumulated depreciation
Total assets
Deferred Outflows of Resources:
Deferred outflow of pension earnings
Deferred outflow related to OPEB
Deferred charge on refunding
Total deferred outflows of resources
Liabilities:
Accounts payable and accrued expenses
Unearned revenue
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
Deferred Inflows of Resources:
Deferred inflow of pension earnings
Deferred inflow related to OPEB
Total deferred inflows of resources
Net Position:
Net investment in capital assets
Restricted for:
Capital Improvements
Community redevelopment
Public safety
Culture and recreation
Infrastructure
Debt service
Building services
Transportation
Cemetery
Unrestricted
Total net position
Primary Government
Governmental
Business -type
Activities
Activities
Total
$ 14,338,221 $
22,626,405
$ 36,964,626
16,946,557
18,949,659
35,896,216
1,014,984
1,298,407
2,313,391
17,621
17,002
34,623
1,056,201
416,990
1,473,191
(50,116)
50,116
-
453,588
206,258
659,846
-
1,879,511
1,879,511
10,770,200
16,419,877
27,190,077
16,896
34,183
51,079
10,541,292
-
10,541,292
29,956,370
11,200,630
41,157,000
49,236,496
89,220,465
138,456,961
134,298,310
162,319,503
296,617,813
3,733,029
-
3,733,029
1,466,831
445,423
1,912,254
-
726,167
726,167
5,199,860
1,171,590
6,371,450
4,246,462
2,175,846
6,422,308
192,639
-
192,639
2,254,703
1,303,394
3,558,097
37,090,123
17,445,301
54,535,424
43,783,927
20,924,541
64,708,468
7,132,013
-
7,132,013
229,138
71,709
300,847
7,361,151
71,709
7,432,860
51,595,557
88,519,639
140,115,196
-
25,419,884
25,419,884
507,206
-
507,206
2,883,972
2,883,972
3,451,833
3,451,833
2,684,980
2,684,980
1,833,697
1,833,697
1,992,908
1,992,908
24,742
24,742
1,531,427
-
1,531,427
21,846,770
28,555,320
50,402,090
$ 88,353,092 $
142,494,843
$ 230,847,935
The accompanying Notes to Financial Statements are an integral part of this statement. Page 129
City of Clermont, Florida
Statement of Activities
Year Ended September 30, 2021
Functions/Proarams:
Governmental Activities:
General government
Public safety
Physical environment
Transportation/public works
Economic environment
Culture and recreation
Interest on long-term debt
Total governmental activities
Business -type Activities
Water
Sewer
Sanitation
Stormwater
Total business -type activities
Total primary government
Net (Expense) Revenue and
Changes in Net Position
Program Revenue Primary Government
Charges for
Operating Grants
Capital Grants and
Governmental
Business -type
Expenses
Services
and Contributions
Contributions
Activities
Activities
Total
$ 5,918,171 $
4,249,762
$ 3,922
$
$ (1,664,487)
$ $
(1,664,487)
23,712,850
1,778,204
1,119,536
(20,815,110)
(20,815,110)
2,763,287
-
281,641
2,155,531
(326,115)
(326,115)
2,264,129
536,584
-
(1,727,545)
(1,727,545)
665,094
-
40,397
-
(624,697)
(624,697)
4,044,169
2,318,752
43,443
50,000
(1,631,974)
(1,631,974)
686,929
-
-
-
(686,929)
(686,929)
40,054,629
8,346,718
2,025,523
2,205,531
(27,476,857)
(27,476,857)
7,109,563
8,465,551
-
5,914,646
7,270,634
7,270,634
8,172,055
8,074,497
11,407,831
11,310,273
11,310,273
3,467,370
3,784,598
-
317,228
317,228
1,990,565
1,782,926
4,771,298
4,563,659
4,563,659
20,739,553
22,107,572
-
22,093,775
23,461,794
23,461,794
$ 60,794,182 $
30,454,290
$ 2,025,523
$ 24,299,306
(27,476,857)
23,461,794
(4,015,063)
General Revenues:
Property taxes
14,353,854
-
14,353,854
Business taxes
143,984
143,984
Franchise fees
3,360,139
3,360,139
Utility taxes
4,466,642
4,466,642
Intergovernmental - unrestricted
9,969,074
-
9,969,074
Unrestricted investment earnings
70,396
106,161
176,557
Miscellaneous
720,857
-
720,857
Gain on sale of capital assets
-
40,066
40,066
Transfers
2,346,072
(2,346,072)
-
Total general revenues and
transfers
35,431,018
(2,199,845)
33,231,173
Change in net position
7,954,161
21,261,949
29,216,110
Net Position - beginning
80,398,931
121,232,894
201,631,825
Net Position - ending
$ 88,353,092
$ 142,494,843 $
230,847,935
The accompanying Notes to Financial Statements are an integral part of this statement. Page 130
City of Clermont, Florida
Balance Sheet
Governmental Funds
September 30, 2021
Infrastructure
Other
Total
Capital
Special
Governmental
Governmental
General
Projects
Revenue
Funds
Funds
Assets:
Cash and cash equivalents
$ 4,484,444
$ 875,376
$ 1,908,306
$ 6,906,066
$ 14,174,192
Investments
10,505,343
74,135
674,656
5,084,467
16,338,601
Receivables, net
1,023,914
-
685
3,995
1,028,594
Inventories, at cost
17,621
-
-
-
17,621
Due from other governments
503,439
200,000
348,840
3,922
1,056,201
Due from other funds
3,922
-
-
-
3,922
Prepaid costs
435,692
-
13,295
448,987
Restricted Investments
-
10,770,200
-
10,770,200
Total assets $ 16,974,375 $ 11,919,711 $ 2,932,487 $ 12,011,745 $ 43,838,318
Liabilities:
Accounts payable $ 1,172,132 $ 704,479 $ 247,507 $ 160,175 $ 2,284,293
Due to other funds 287,127 - - 3,922 291,049
Accrued liabilities 1,318,285 69,764 1,388,049
Unearned revenue 190,484 - 190,484
Total liabilities 2,968,028 704,479 247,507 233,861 4,153,875
Deferred Inflows of Resources:
Unavailable revenue - liens, forfeitures and rents
98,189
98,189
Total deferred inflows of resources
98,189
-
98,189
Fund Balances:
Nonspendable
453,313
- 13,295
466,608
Restricted
447,901 -
2,684,980 11,764,589
14,897,470
Assigned
1,390,092 11,215,232
- -
12,605,324
Unassigned
11,616,852 -
- -
11,616,852
Total fund balances
13,908,158 11,215,232
2,684,980 11,777,884
39,586,254
Total liabilities, deferred inflows of
resources, and fund balances
$ 16,974,375 $ 11,919,711 $
2,932,487 $ 12,011,745
Amounts reported for governmental activities in the Statement of Net Position are different
Capital assets used in governmental activities are not financial resources and are not reported in the funds.
79,192,866
Accrued interest payable is not due in the current period and therefore is not reported in the funds.
(235,678)
Other long-term assets are not available to pay for current period expenditures and, therefore are deferred in the
funds.
98,189
Deferred inflows and outflows of resources related to pension earnings are not recognized in governmental
funds, however, they are recorded in net position under full accrual accounting.
(2,161,291)
Net pension assets are not current financial resources and therefore are not reported in the funds
10,551,155
The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are
included in the governmental activities of the Statement of Net Position.
676,286
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.
(39,354,689)
Net Position of Governmental Activities in the Statement of Net Position.
$ 88,353,092
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 131
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2021
Revenues:
Taxes
Franchise fees
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Impact fees/special assessments
Investment earnings
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Debt Service:
Principal retirement
Interest and fiscal charges
Capital Outlay:
Physical environment
Economic environment
Total expenditures
Excess (Deficiency) of Revenues Over
Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of general capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Infrastructure
Other
Total
Capital
Special
Governmental
Governmental
General
Projects
Revenue
Funds
Funds
$ 18,513,069 $
$
$ 451,411
$ 18,964,480
3,360,139
-
3,360,139
461,931
1,796,871
2,258,802
7,693,536
200,000
4,306,742
44,319
12,244,597
2,586,994
-
-
237,980
2,824,974
176,011
-
176,011
-
-
-
2,457,101
2,457,101
41,026
13,874
2,000
12,135
69,035
1,320,956
43,437
-
5,335
1,369,728
34,153,662
257,311
4,308,742
5,005,152
43,724,867
5,692,584
695
52,452
3,922
5,749,653
21,375,719
-
816,582
2,099,169
24,291,470
2,636,835
18,580
92,096
2,747,511
1,416,803
655,076
-
2,071,879
150,489
-
457,531
608,020
2,943,370
7,515
76,315
3,027,200
-
88,016
2,114,206
2,202,222
2,978
-
14,753
693,685
711,416
-
55,839
-
-
55,839
-
4,461,100
-
-
4,461,100
34,218,778
4,517,634
1,652,974
5,536,924
45,926,310
(65,116) (4,260,323)
2,346,072
(218,472)
44,214
2,171,814 -
2,106,698 (4,260,323)
11,801,460 15,475,555
$ 13,908,158 $ 11,215,232 $
2,655,768 (531,772) (2,201,443)
2,833,008 5,179,080
(1,893,744)
(720,792)
(2,833,008)
-
44,214
(1,893,744)
2,112,216
2,390,286
762,024
1,580,444
188,843
1,922,956
10,197,440
39,397,411
2,684,980
$ 11,777,884
$ 39,586,254
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 132
City of Clermont, Florida
Reconcliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
Year Ended September 30, 2021
Net Change in Fund Balances - total governmental funds: $ 188,843
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental funds report outlays for capital assets as expenditures because such outlays
use current financial resources. In contrast, the Statement of Activities reports only a portion
of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as
depreciation expense for the period. 3,531,431
The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-
ins and disposals) is to decrease net position. (138,884)
Contributions of capital assets are not reported as revenues in the governmental funds 1,955,531
Governmental funds do not present revenues that are not available to pay current obligations.
In contrast, such revenues are reported in the Statement of Activities when earned. (19,041)
Cash pension contributions reported in the funds were more than the calculated pension
expense on the statement of activities, and therefore increased net position. 1,636,658
Governmental funds report note proceeds as current financial resources. In contrast, the
Statement of Activities treats such issuance of debt as a liability. Governmental funds report
repayment of note principal as an expenditure, In contrast, the Statement of Activities treats
such repayments as a reduction in long-term liabilities. This is the amount by which
reoavments exceeded proceeds. 2,202,222
Some expenses reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds. (929,454)
Internal service funds are used by management to charge the costs of certain activities, such
as health insurance, to individual funds. The net revenue (expense) of certain internal service
funds is reported with governmental activities. (473,145)
Change in Net Position of Governmental Activities $ 7,954,161
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 133
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year ended September 30, 2021
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original
Final
Revenues:
Taxes
$ 18,089,201
$ 18,089,201
$ 18,513,069 $
423,868
Franchise fees
3,250,000
3,250,000
3,360,139
110,139
Licenses and permits
250,300
250,300
461,931
211,631
Intergovernmental revenues
5,125,295
5,442,955
7,693,536
2,250,581
Charges for services
2,298,801
2,298,801
2,586,994
288,193
Fines and forfeitures
114,200
114,200
176,011
61,811
Investment earnings
95,000
95,000
41,026
(53,974)
Miscellaneous
776,353
915,805
1,320,956
405,151
Total revenues
29,999,150
30,456,262
34,153,662
3,697,400
Expenditures:
Current:
General government:
City council
41,829
72,170
71,761
409
City clerk
366,151
458,991
439,324
19,667
City manager
832,747
1,129,654
1,051,819
77,835
Finance
999,776
1,039,519
960,973
78,546
Legal services
105,000
147,086
143,087
3,999
Planning & zoning
608,117
615,735
649,711
(33,976)
Information technology
904,584
981,808
931,082
50,726
Human resources
588,733
598,540
403,925
194,615
Purchasing
289,665
317,810
314,802
3,008
Other general government
222,386
728,000
726,100
1,900
4,958,988
6,089,313
5,692,584
396,729
Public safety:
Law enforcement
10,704,513
10,808,174
10,523,641
284,533
Fire control
10,958,353
11,291,474
10,852,078
439,396
21,662,866
22,099,648
21,375,719
723,929
Physical environment
2,349,237
2,826,775
2,636,835
189,940
Transportation
1,535,994
1,535,185
1,416,803
118,382
Economic environment
159,782
159,782
150,489
9,293
Culture and recreation
3,156,166
3,412,785
2,943,370
469,415
Interest and fiscal charges
-
-
2,978
(2,978)
Total expenditures
33,823,033
36,123,488
34,218,778
1,904,710
Excess (deficiency) of revenues over
expenditures
(3,823,883)
(5,667,226)
(65,116)
5,602,110
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 134
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year ended September 30, 2021
Other Financing Sources (Uses):
Transfers In 2,147,211 2,856,950 2,346,072 (510,878)
Transfers Out (218,467) (268,269) (218,472) 49,797
Sale of General Capital Assets 15,000 15,000 44,214 29,214
Total other financing sources (uses)
1,943,744
2,603,681
2,171,814 (431,867)
Net Change in Fund Balance
(1,880,139)
(3,063,545)
2,106,698 5,170,243
Fund Balance - beginning
11,801,460
11,801,460
11,801,460 -
Fund Balance - ending $
9,921,321 $
8,737,915 $
13,908,158 $ 5,170,243
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 135
n
Page 136
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Infrastructure Special Revenue Fund
Year ended September 30, 2021
Revenues:
Intergovernmental revenues
Investment earnings
Total revenues
Expenditures:
Current:
General government
Public safety:
Police
Fire control
Physical Environment
Transportation
Culture and recreation
Debt Service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Uses:
Transfers out
Total other financing uses
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 2,666,687 $ 2,788,468 $ 4,306,742 $ 1,518,274
4,200 4,200 2,000 (2,200)
2,670,887 2,792,668 4,308,742 1,516,074
20,463
279,814
52,452
227,362
275,600
420,725
200,363
220,362
375,000
757,413
616,219
141,194
650,600
1,178,138
816,582
361,556
-
321,452
18,580
302,872
880,522
655,076
225,446
-
7,517
7,515
2
85,734
85,734
88,016
(2,282)
20,352
20,352
14,753
5,599
106,086
106,086
102,769
3,317
777,149
2,773,529
1,652,974
1,120,555
1,893,738
19,139
2,655,768
2,636,629
(1,893,738)
(1,893,738)
(1,893,744)
(6)
(1,893,738)
(1,893,738)
(1,893,744)
(6)
-
(1,874,599)
762,024
2,636,623
1,922,956
1,922,956
1,922,956
-
$ 1,922,956 $
48,357 $
2,684,980 $
2,636,623
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 137
City of Clermont, Florida
Statement of Net Position
Proprietary Funds
September 30, 2021
Assets:
Current assets:
Cash and cash equivalents
Investments
Restricted cash and cash equivalents
Accounts receivable, net
Due from other governments
Inventories
Prepaid expenses
Total current assets
Noncurrent assets:
Restricted investments
Advances to other funds
Interest receivable
Capital assets:
Land, buildings and equipment
Construction in progress
Less accumulated depreciation
Total capital assets (net of accumulated depreciation)
Total noncurrent assets
Total assets
Deferred Outflows of Resources:
Deferred charge on refunding
Deferred outflows related to OPEB
Total deferred outflows of resources
Governmental
Business -type Activities -Enterprise Funds Activities -
Internal Service
Water Sewer Sanitation Stormwater Total Fund
$ 7,962,607
$ 12,311,120
$ 1,938,192
$ 414,486
$ 22,626,405 $
164,029
9,937,148
6,783,980
2,228,531
-
18,949,659
607,956
845,214
729,382
71,374
233,541
1,879,511
-
468,636
512,923
197,940
118,908
1,298,407
2,930
300,233
-
-
116,757
416,990
-
17,002
-
-
-
17,002
-
97,827
68,734
22,306
17,391
206,258
4,601
19,628,667
20,406,139
4,458,343
901,083
45,394,232
779,516
2,448,657
11,800,824
2,170,396
-
16,419,877
-
-
275,000
287,127
562,127
-
12,780
19,116
2,287
-
34,183
356
49,690,925
79,685,323
5,237,128
21,542,462
156,155,838
-
3,091,592
6,209,801
195,785
191,645
9,688,823
(18,493,122)
(37,711,873)
(3,437,546)
(5,781,025)
(65,423,566)
34,289,395
48,183,251
1,995,367
15,953,082
100,421,095
-
36,750,832
60,278,191
4,455,177
15,953,082
117,437,282
356
56,379,499
80,684,330
8,913,520
16,854,165
162,831,514
779,872
259,180
466,987
-
-
726,167
-
156,336
120,877
119,562
48,648
445,423
-
415,516
587,864
119,562
48,648
1,171,590
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 138
Liabilities:
Current liabilities:
Accounts payable
676,294
339,309
124,466
167,556
1,307,625
334,618
Salaries payable
97,441
100,236
74,462
34,124
306,263
3,824
Accrued interest payable
27,929
49,651
10,847
35,205
123,632
-
Due to other funds
-
-
-
275,000
275,000
Compensated absences
16,258
19,948
8,150
2,170
46,526
Customer deposits payable
434,942
-
-
-
434,942
-
Unearned revenue
-
3,384
-
-
3,384
2,155
Revenue bonds and notes payable -current
316,440
562,560
88,971
288,897
1,256,868
-
Total current liabilities
1,569,304
1,075,088
306,896
802,952
3,754,240
340,597
Noncurrent liabilities:
Compensated absences
146,321
179,533
73,349
19,533
418,736
-
Other post employment benefits
1,151,070
962,299
786,295
352,209
3,251,873
Notes payable
-
-
1,147,739
3,726,953
4,874,692
Revenue bonds payable
3,204,000
5,696,000
-
-
8,900,000
Total noncurrent liabilities
4,501,391
6,837,832
2,007,383
4,098,695
17,445,301
-
Totalliabilities
6,070,695
7,912,920
2,314,279
4,901,647
21,199,541
340,597
Deferred Inflows of Resources:
Deferred inflows related to OPEB
27,193
17,336
19,900
7,280
71,709
Total deferred inflows of resources
27,193
17,336
19,900
7,280
71,709
-
Net Position:
Net investment in capital assets
31,028,135
42,391,678
2,929,053
12,170,773
88,519,639
Restricted for capital improvements
6,313,333
19,106,551
-
-
25,419,884
-
Unrestricted
13,355,659
11,843,709
3,769,850
(176,887)
28,792,331
439,275
Total net position
$ 50,697,127
$ 73,341,938 $
6,698,903
$ 11,993,886
142,731,854 $
439,275
The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are included in the
Business Activities of the Statement of Net Position. (237,011)
Total Net Position per Government -Wide Financial Statements $ 142,494,843
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 139
n
Page140
City of Clermont, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Year Ended September 30, 2021
Governmental
Business -type Activities -Enterprise Funds
Activities -
Internal Service
Water
Sewer
Sanitation
Stormwater
Total
Fund
Operating Revenues:
Charges for services $
7,997,519 $
8,071,532 $
3,784,598
$ 1,782,926 $
21,636,575
$ 5,391,074
Miscellaneous
468,032
2,965
-
-
470,997
35,290
Total operating revenues
8,465,551
8,074,497
3,784,598
1,782,926
22,107,572
5,426,364
Operating Expenses:
Personnel services
1,990,414
2,093,753
1,455,806
744,020
6,283,993
68,556
Utilities
574,275
911,380
2,237
11,111
1,499,003
-
Dump fees
18,144
294,482
601,342
16,670
930,638
Administrative services
466,671
453,853
233,241
148,757
1,302,522
Repairs and maintenance
1,213,980
279,295
200,185
44,981
1,738,441
Depreciation and amortization
1,769,189
3,119,667
460,939
728,619
6,078,414
-
Professional services
254,230
142,303
43,636
17,947
458,116
58,165
Insurance claims and expenses
141,780
178,869
72,413
43,159
436,221
5,962,564
Other supplies and expenses
511,785
433,734
338,609
83,074
1,367,202
-
Total operating expenses
6,940,468
7,907,336
3,408,408
1,838,338
20,094,550
6,089,285
Operating income (loss)
1,525,083
167,161
376,190
(55,412)
2,013,022
(662,921)
Nonoperating Revenues (Expenses):
Investment income
37,315
52,230
13,925
2,691
106,161
1,361
Interest expense
(113,805)
(203,012)
(32,922)
(106,849)
(456,588)
-
Gain (loss) on disposal of capital assets
1,491
38,575
40,066
-
Total nonoperating revenue (expenses)
(74,999)
(150,782)
19,578
(104,158)
(310,361)
1,361
Income (loss) before contributions and transfers
1,450,084
16,379
395,768
(159,570)
1,702,661
(661,560)
Capital contributions
5,914,646
11,407,831
-
4,771,298
22,093,775
Transfers out
(1,135,342)
(1,210,730)
-
-
(2,346,072)
Change in net position
6,229,388
10,213,480
395,768
4,611,728
21,450,364
(661,560)
Total Net Position - Beginning
44,467,739
63,128,458
6,303,135
7,382,158
1,100,835
Total Net Position - Ending $
50,697,127 $
73,341,938 $
6,698,903
$ 11,993,886
$ 439,275
Change in Net Position, per above
21,450,364
Internal service funds are used by management to charge the costs of certain activities
to individual funds.
The net revenue (expense) of certain
internal service funds is reported with Business Activities.
(188,415)
Change in Business -Type Activities in Net Position per Government -Wide Financial Statements
$
21,261,949
The accompanying Notes to Financial Statements are
an integral part of this
statement.
Page 141
City of Clermont, Florida
Statement of Cash Flows
Proprietary Funds
Year Ended September 30, 2021
Cash Flows from Operating Activities:
Receipts from customers
Receipts from internal services provided
Payments to suppliers
Payments to employees
Net cash provided (used) by operating activities
Cash Flows from Non -Capital Financing Activities:
Due from other funds
Transfers out
Net cash provided (used) by non -capital financing.
activities
Cash Flows from Capital and Related Financing Activities:
Acquisition of capital assets
Sale of capital assets
Interest paid on long-term debt
Principal paid on debt
Capital grants
Fees and assessments received
Net cash provided (used) by capital and related financing
activities
Governmental
Activities -
Business -Type Activities -Enterprise Funds
Internal Service
Water
Sewer
Sanitation
Stormwater
Total
Fund
$ 8,334,079 $
7,981,194 $
3,753,196 $
1,755,304 $
21,823,773
$ -
-
-
-
-
-
5,428,542
(2,846,931)
(2,992,977)
(1,480,487)
(231,219)
(7,551,614)
(5,892,126)
(1,925,877)
(1,966,009)
(1,365,589)
(700,995)
(5,958,470)
(67,703)
3,561,271
3,022,208
907,120
823,090
8,313,689
(531,287)
-
-
110,000
-
110,000
(1,135,342)
(1,210,730)
-
(2,346,072)
(1,135,342)
(1,210,730)
110,000
(2,236,072)
(3,304,292)
(2,795,500)
(19,363)
(651,198)
(6,770,353)
1,491
38,575
40,066
(87,450)
(155,466)
(33,683)
(109,317)
(385,916)
(307,800)
(547,200)
(86,736)
(281,638)
(1,223,374)
-
-
93,243
93,243
1,614,146
2,658,918
-
4,273,064
(2,083,905)
(839,248)
(101,207)
(948,910)
(3,973,270)
The accompanying Notes to Financial Statements are an integral part of these statements.
Page142
Cash Flows from Investing Activities:
Sale (purchase) of investments
221,254
454,758
(1,030,678)
(354,666)
351,196
Investment income
173,947
256,596
(7,632)
2,691
425,602
1,587
Net cash provided by investing activities
395,201
711,354
(1,038,310)
2,691
70,936
352,783
Net Increase (Decrease) in Cash and Cash Equivalents
737,225
1,683,584
(122,397)
(123,129)
2,175,283
(178,504)
Cash and Cash Equivalents - beginning
8,070,596
11,356,918
2,131,963
771,156
22,330,633
342,533
Cash and Cash Equivalents - end
$
8,807,821
$
13,040,502
$
2,009,566
$
648,027
$
24,505,916
$
164,029
Classified As:
Cash and cash equivalents
$
7,962,607
$
12,311,120
$
1,938,192
$
414,486
$
22,626,405
$
164,029
Restricted cash and cash equivalents
845,214
729,382
71,374
233,541
1,879,511
-
Total
$
8,807,821
$
13,040,502
$
2,009,566
$
648,027
$
24,505,916
$
164,029
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities
Operating income (loss)
$
1,525,083
$
167,161
$
376,190
$
(55,412)
$
2,013,022
$
(662,921)
Adjustments Not Affecting Cash:
Depreciation and amortization
1,769,189
3,119,667
460,939
728,619
6,078,414
-
Change in Assets and Liabilities:
Decrease (Increase) in accounts receivable
(145,910)
(96,687)
(31,402)
(27,622)
(301,621)
2,208
Increase in unearned revenue
-
3,384
3,384
(30)
Increase in customer deposits
14,438
-
-
14,438
-
Decrease in prepaid costs
(18,352)
(8,140)
3,650
(2,453)
(25,295)
2
Decrease (Increase) in inventory
(9,114)
-
-
(9,114)
-
Increase (Decrease) in accounts payable
361,400
(290,921)
7,526
136,933
214,938
128,601
Increase in OPEB
83,726
93,435
68,681
39,436
285,278
-
Increase in accrued liabilities
(19,189)
34,309
21,536
3,589
40,245
853
Total adjustments
2,036,188
2,855,047
530,930
878,502
6,300,667
131,634
Net Cash Provided (Used) by Operating Activities
$
3,561,271
$
3,022,208
$
907,120
$
823,090
$
8,313,689
$
(531,287)
Noncash Investing, Capital, and Financing Activities:
Contributed assets
$
4,000,267
$
8,748,913
$
-
$
4,561,298
$
17,310,478
$
Increase (Decrease) in Fair Value of Investments
$
(128,541)
$
(192,265)
$
23,005
$
-
$
(297,801)
$
The accompanying Notes to Financial Statements are an integral part of these statements.
Page143
City of Clermont, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2021
Assets:
Cash and cash equivalents
Investments at fair value:
U.S. Government & other debt securities
Equities
Total investments
Total assets
Liabilities:
Refunds payable and other
Pending trades payable
Total liabilities
Net Position Restricted for Pensions
Total Employee
Pension Funds
1,810,813
20,652,235
39,669,273
60,321,508
62,132, 321
10,369
615,517
625,886
61,506,435
The accompanying Notes to Financial Statements are an integral part of this statement.
Page144
City of Clermont, Florida
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended September 30, 2021
Total Employee
Pension Funds
Additions:
Contributions:
Employer
$ 2,212,560
Plan members
584,841
State
600,906
Total contributions
3,398,307
Investment earnings
Net increase (decrease) in fair value of investments
9,114,343
Interest and dividends
1,389,378
Less: Investment expense
(44,000)
Total net investment earnings
10,459,721
Total additions
13,858,028
Deductions:
Benefits/distributions
1,021,198
Refund of contributions
35,960
Administrative
148,889
Total deductions
1,206,047
Change in Net Position
12,651,981
Net Position - beginning
58,569,161
Prior period adjustment
(9,714,707)
Net Position - ending
$ 61,506,435
The accompanying Notes to Financial Statements are an integral part of this statement.
Page145
n
Page146
NOTES TO FINANCIAL STATEMENTS
Page147
n
Page148
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Clermont, Florida (the City) is a political subdivision of the State of Florida located in Lake County. The City of Clermont
was incorporated under State law in December 1916 and operates under the council-manager form of government under its charter
adopted pursuant to H.B. 2223, Ch.67-1217 Special Acts, of the State of Florida. The legislative branch of the City is composed of a
Mayor and four (4) members elected Council. The City Council is responsible for the establishment and adoption of policy. The
execution of such policy is the responsibility of the Council appointed City Manager.
In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units.
The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially
accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its
officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or
there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary
government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on
it.
A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or
activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the
primary government (a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to
finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the
organization. In applying the above criteria, the City has one blended component unit as follows:
The City of Clermont Community Redevelopment Fund.,
The City of Clermont created the Downtown Redevelopment Agency in May of 1997. This is a dependent taxing district established in
accordance with Chapter 163, Part III, Florida Statutes. Notification to affected taxing agency was done in compliance with Chapter
163.346, Part III, Florida Statutes. The incremental annual increase in tax over the base years will be used to fund projects designed to
enhance and improve the described area. The City Council, being the duly elected governmental body for the designated area,
passed Resolution 97-950, which established the City of Clermont as the Redevelopment Agency for the purpose of carrying out the
community redevelopment programs and plans within the area. Through Ordinance 359-M the City established the Community
Redevelopment Trust Fund to account for all transactions generated by this special revenue fund. The City of Clermont Community
Redevelopment Fund is presented as a blended component unit. The CRA is governed by a board of seven- the five members of the
Clermont City Council and two individuals appointed by the City Council. On December 8, 2015, Ordinance No. 2015-77 passed and
modification of the Community Redevelopment Plan was approved. Because the governing body of the CRA is substantively the same
as the City and the City has operational responsibility for the CRA, the CRA is presented as a blended component unit of the City.
Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information
on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter
are excluded from the government -wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Page149
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis
of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the
end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is received by the City.
The government reports the following funds:
Major Governmental Funds
The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government,
except those required to be accounted for in another fund.
Capital Projects Fund accounts for financial resources segregated for the acquisition or construction of major capital facilities.
Infrastructure Special Revenue Fund accounts for the proceeds of the Local Government Infrastructure Surtax. The proceeds
and interest accrued thereto, by law are only to be used to finance, plan and construct infrastructure.
Nonmajor Governmental Fund Types
Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted or committed to
expenditures for specified purposes other than debt service or capital projects.
The Debt Service Fund was established to account for the accumulation of resources and payment of bond principal and interest
from governmental resources.
Major Proprietary Funds
Water Fund is used to account for the operations of the City's water system, which is financed in a manner similar to private
business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are
financed primarily through user charges.
Sewer Fund is used to account for the operations of the City's sewer system, which is financed in a manner similar to private
business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are
financed primarily through user charges.
Sanitation Fund is used to account for the fiscal activities of the City's refuse collection and disposal operation.
Stormwater Fund (Enterprise Fund) is used to account for the fiscal activities of the City's stormwater drainage operation, as well
as the funding and payment of related debt.
Page 150
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Nonmajor Proprietary Funds
Internal Service Fund is used to account for the costs of group insurance which are charged to other departments on a cost
reimbursement basis.
Fiduciary Funds
Pension Trust Funds account for activities of police officers, firefighters and general employees retirement plans which
accumulate resources for pension benefit payments to qualified employees.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions
to this general rule are other charges between the City's water and sewer function and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally
dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all
taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the City's water, sewer, sanitation and stormwater utility funds are
charges to customers for sales and services. The City also recognizes as operating revenue the meter fees intended to recover
the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources
first, then unrestricted resources as they are needed.
Assets, Liabilities, Deferred Outflowsllnf lows and Net Position/Fund Balance:
Deposits and Investments
The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments
with original maturities of three months or less from the date of acquisition.
Investments of the City are reported at fair value and are categorized within the fair value hierarchy established in accordance
with GASB Statement No. 72, Fair Value Measurement and Application. The City's investments consist of investments
authorized per their investment policy adopted in accordance with Section 218.415, Florida Statutes.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are
referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e.,
the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other
funds."
Any residual balances outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances".
Advances between funds, as reported in the fund financial statements, are offset by a non -spendable fund balance in applicable
governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
Page 151
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to
the City. City property tax revenues are recognized when levied to the extent that they result in current receivables.
All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of
each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December,
2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes
become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year,
certificates are sold for all delinquent taxes on real property.
Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as
expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government -wide and fund financial statements. These are recorded as expenditures when consumed rather than when
purchased.
Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are
classified as restricted assets on the balance sheet because they are maintained in separate accounts and their use is limited by
applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet.
Capital Assets
Capital assets, which include property, plant, equipment, intangible and infrastructure assets (e.g., roads, bridges, sidewalks,
and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $1,000 or more and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not
capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets
constructed.
Capital assets of the City are depreciated using the straight line method over the following estimated useful lives:
Assets
Years
Buildings
10-50
Improvements
15-50
Infrastructure
30-50
Equipment& Machinery
3-15
Intangible Assets
3-15
Page 152
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay is
accrued when incurred in the government -wide and proprietary financial statements. A portion of sick pay is accrued for
employees with at least ten (10) years of service. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements.
Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The
face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other
financing sources while discounts on debt issuances are reported as other financing uses.
For governmental activities, compensated absences, net pension obligations, and net other postemployment benefit obligations
are generally liquidated by the general fund.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position
that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The
City has three items that qualify for reporting in this category. The deferred charge on refunding, deferred outflows of pension
earnings and deferred outflow related to OPEB reported in the government -wide statement of net position and the statement of
net position - proprietary funds. A deferred charge on refunding results from the difference in the carrying value of refunded debt
and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that
applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only
one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds
report unavailable revenues from several sources: liens, forfeitures and rental income. These amounts are deferred and
recognized as an inflow of sources in the period that the amounts become available. The City also has deferred inflows of
pension earnings and OPEB reported in the government -wide statement of net position.
Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and
unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the
government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the
resources are considered to be applied. It is the City's policy to consider restricted net position to have been depleted before
unrestricted net position is applied.
Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of
committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed,
assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about
the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to
have been depleted before using any of the components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund
balance. Unassigned fund balance is applied last.
Page 153
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of
resources for specific purposes. The City itself can establish limitations on the use of resources through either a commitment
(committed fund balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a
formal action of the City's highest level of decision -making authority. The Council is the highest level of decision -making authority
for the City that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the
limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove
or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet
criteria to be classified as committed. The Council has maintained authority to assign fund balance.
The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated
revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist
temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment.
Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.
New GASB Statements Implemented
In fiscal year 2021, the City implemented GASB Statement No. 84, Fiduciary Activities, which establishes criteria for identifying and
reporting fiduciary activities of all state and local governments. The focus of the criteria is on (1) whether a government is controlling
the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Governments with activities
meeting this criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The City
does not consider the general employees' defined contribution pension plan to meet the criteria for reporting as fiduciary activities due
to the City's administrative involvement with those funds. As such, the general employees' defined contribution pension fund is no
longer presented in the fiduciary statements, and the beginning fund balance of the fiduciary funds decreased by $9,714,707.
Prior Period Adjustments
As stated above in the new accounting standards, the general employees' defined contribution pension fund is excluded from the
City's Fiduciary Statements but was previously included in the prior years, affecting the comparability of financial statements for those
years. As a result of this change, beginning fiduciary net position has been adjusted by $9,714,707.
NOTE 2 RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in
Fund Balances and the Government -Wide Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net
changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the
government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as
expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense." The details of this difference are as follows:
Capital Outlay
Depreciation Expense
7,725,072
(4,193, 641)
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ 3,531,431
Page 154
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 2 RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Another element of that reconciliation states that "The issuance of long-term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position." The details of this difference are as follows:
Principal Repayment $ 2,202,222
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ 2,202,222
Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in governmental funds." The details of this difference are as
follows:
Compensated Absences $ (25,784)
Other Post Employment Benefits (928,157)
Accrued Interest Payable 24,487
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ (929,4541
NOTE 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
• Prior to the end of the fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following October 1. The operating budget includes proposed expenditures and the means of
financing them.
• Budget workshops are scheduled as needed.
• The general summary of the budget and notice of public hearing is published in the local newspaper.
• Public hearings are conducted to obtain taxpayer comments.
• Prior to October 1, the budgets are legally enacted through passage of a resolution.
• The City Manager is authorized to transfer budgeted amounts within departments; however, any revisions that alter the total
appropriations of any department must be approved by the City Council.
• The level of classification detail at which expenditures may not legally exceed appropriations is the department level.
• Appropriations lapse at the close of the fiscal year to the extent they have not been expended. Encumbrance accounting is
employed in governmental funds. Encumbrances (e.g., purchase orders and contracts) outstanding at year end are reported
as assigned fund balances and do not constitute expenditures or liabilities because the commitments will be re -appropriated
and honored during the subsequent year.
• Budgets are adopted for the general fund, special revenue funds, debt service funds and the capital projects fund on a basis
consistent with generally accepted accounting principles, except as described below under Budget Basis of Accounting.
Budgets are also adopted for the enterprise funds: however, budgetary comparisons are not presented since they are not
required under generally accepted accounting principles.
• The City Council, by Ordinance or Resolution, may make supplemental appropriations in excess of those originally
estimated for the year up to the amount of available revenues. Budgeted amounts presented in the accompanying financial
statements have been adjusted for legally authorized revisions.
Page 155
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED)
Budgetary Basis of Accounting
The City includes a portion of the prior year's fund balances represented by unappropriated liquid assets remaining in the fund as
budgeted revenue in the succeeding year. The results of operations on a GAAP basis do not recognize the fund balance allocation as
revenue as it represents prior periods' excess of revenues over expenditures. The City does not budget for capital outlay expenditures
and other financing sources related to the acquisition of assets through notes payable.
Expenditures in Excess of Appropriations
Expenditures exceeded appropriations in various departments of the General Fund, and Debt Service Fund. These excess
expenditures were funded by greater than anticipated revenues and available fund balance.
NOTE 4 CASH AND INVESTMENTS
Deposits
All bank deposits were fully covered by federal depository insurance or by collateral held in banks that are members of the State of
Florida's Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans.
This limits local government deposits to "authorized depositories".
Investments
Investments in all fund types are stated at fair value, which is the amount for which an investment could be exchanged in a current
transaction between willing parties, other than in a forced liquidation sale. Fair value is based on quoted market prices. Changes in the
fair value of investments are recognized as revenue and included in investment income.
The City's investment policies are governed by state statute and city ordinance. Authorized investments are:
• The Local Government Surplus Funds Trust (SBA).
• SEC registered money market funds.
• Interest -bearing time deposits or savings accounts in qualified public depositories.
• Direct obligations of the U.S. Treasury.
• Federal agencies and instrumentalities.
• Securities of, or other interests in, any open-end or closed -end management -type investment company or investment trust
registered under the Investment Company Act of 1940.
• Repurchase Agreements.
• Other investments authorized by ordinance.
The assets of the City's general employees defined benefit pension fund, are invested in the pooled investment fund for the
Florida Municipal Pension Trust Fund (FMPTF). Investments held in this fund consist of corporate bonds and stocks and cash
equivalents. The fund is stated at fair value, and investment earnings are allocated to participants in the fund based on their
equity in this pooled investment account as provided by the Florida Municipal Pension Fund.
Page 156
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Investments made by the City of Clermont at September 30, 2021 are summarized below. Defined benefit pension plan investments,
other than $49,383,980 in mutual funds, investing in equity securities, are included below. In accordance with GASB 31, investments
are reported at fair value.
Weighted Average
Investment Type
Fair Value
Credit Rating
Maturity
Federal Agency Bond
$ 4,271,392
AA+
1.77 years
Federal Agency Mortgage -Backed Securities
600,876
AA+
9.56 years
Federal Agency Commercial Mortgage -Backed Securities
1,276,258
AA+
1.92 years
Federal Agency Colataralized Mortgage Obligation
113,678
AA+
6.73 years
US Treasury Notes
7,124,529
AA+
2.26 years
Supra -National Agency Bond/Note
1,767,586
AAA
2.29 years
Corporate Note
4,384,595
BBB+/AA
2.27 years
Asset Backed Security
3,594,063
AAA/NR
3.1 years
Municipal Bonds
1,125,758
AAA
1.92 years
FL Palm
25,886,962
AAAm
80 days
Pension Fixed Income Securities
20,652,235
various
2 - 8 years
$ 70,797,932
Credit Risk:
The City's investment policy limits credit risk by restricting authorized investments to those described above.
Custodial Credit Risk:
In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's
investment policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local
governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of
the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its
member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2021, all of the city's
bank deposits were in qualified public depositories.
For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the
value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2021, none of the
investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or
book entry form.
Concentration of Credit Risk:
The City's investment policy requires diversification but does not specify limits on types of investments.
Interest Rate Risk:
The City's investment policy does not specifically address interest rate risk, however the general investment policy is to apply the
prudent -person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek
reasonable income, preserve capital, and in general, avoid speculative investments. The City manages its exposure to declines in fair
values by investing primarily in pooled investments that have a weighted average maturity of less than three months.
Page 157
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Fair Value
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting
principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction
between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value
of the asset. The City uses a market approach in measuring fair value that uses prices and other relevant information generated by
market transactions involving identical or similar assets liabilities, or groups of assets and liabilities.
Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical
assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for
identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable, and uses significant
unobservable inputs that uses the best information available under the circumstances, which includes the City's own data in
measuring unobservable inputs.
The City has the following recurring fair value measurements as of September 30, 2021:
Investments Valued by Fair Value Level
Federal Agency Bond $
Federal Agency Colataralized Mortgage Obligation
Federal Agency Commercial Mortgage -Backed Securiti(
Federal Agency Mortgage -Backed Securities
US Treasury Notes
Supra -National Agency Bond/Note
Corporate Note
Asset Backed Security
Municipal Bonds
Pension Fixed Income Securities
Pension Equity Securities
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
4,271,392 $
113,678
1,276,258
600,876
7,124, 529
1,767,586
4,384,595
3,594,063
1,125,758
20,652,235
39,837,474
84,748,444 $
7,124,529
20,652,235
39,837,474
Significant Other
Observable Inputs
(Level 2)
$ 4,271,392
113,678
1,276,258
600,876
1,767,586
4,384,595
3,594,063
1,125,758
67,614,238 $ 17,134,206
Page 158
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 5 RECEIVABLES
Receivables as of year end for the City's individual major funds and nonmajor funds, including the applicable allowances for
uncollectible accounts, are as follows:
Less Allowance
for Uncollectible
Accounts
Taxes Other
Accounts
Total
General Fund
$ 3,082,150
$109,360 $ 852,029
$ (3,019,625)
$1,023,914
Infrastructure Special Revenue Fund
-
- 685
685
Water Fund
467,127
59,244
(44,955)
481,416
Sewer Fund
661,864
19,116
(148,941)
532,039
Sanitation Fund
250,118
2,555
(52,446)
200,227
Stormwater Fund
144,292
178
(25,562)
118,908
Nonmajor Governmental Funds
-
3,995
3,995
Internal Service Fund
- 3,286
3,286
$ 4,605,551
$109,360 $ 941,088
$ (3,291,529)
$ 2,364,470
NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2021 was as follows:
Beginning Balance Increases Decreases Ending Balance
Governmental Activities:
Capital Assets, not being depreciated:
Land $ 25,345,300 $ 505,730 $ - $ 25,851,030
Construction in progress 5,568,901 5,315,815 (6,779,376) 4,105,340
Total capital assets, not being depreciated 30,914,201 5,821,545 (6,779,376) 29,956,370
Capital Assets, being depreciated:
Buildings
Improvements/infrastructure
Machinery and equipment
Intangibles
Total capital assets being depreciated
Less Accumulated Depreciation for:
Buildings
Improvements/infrastructure
Machinery and equipment
Intangibles
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
31,304,222
321,148
31,625,370
31,126,101
8,065,447
39,191, 548
16,692,541
2,151,645
(478,136)
18,366,050
554,945
6,500
(39,377)
522,068
79,677,809
10,544,740
(517,513)
89,705,036
(12,251,318)
(1,020,316)
(13,271,634)
(13,681,423)
(1,447,895)
-
(15,129,318)
(10,351,939)
(1,696,896)
432,946
(11,615,889)
(462,542)
(28,534)
39,377
(451,699)
(36,747,222)
(4,193,641)
472,323
(40,468,540)
42,930,587
6,351,099
(45,190)
49,236,496
$ 73,844,788
$12,172,644
$(6,824,566) $
79,192,866
Page 159
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 6 CAPITAL ASSETS (CONTINUED)
Beginning
Balance Increases Decreases Ending Balance
Business -type Activities:
Capital Assets, not being depreciated:
Land $ 1,511,807 $ - $ - $ 1,511,807
Construction in progress 7,253,374 5,015,045 (2,579,596) 9,688,823
Total capital assets, not being depreciated 8,765,181 5,015,045 (2,579,596) 11,200,630
Capital Assets, being depreciated:
Buildings
Improvements/infrastructure
Machinery and equipment
Intangibles
Total capital assets being depreciated
Less Accumulated Depreciation for:
Buildings
Improvements/infrastructure
Machinery and equipment
Intangibles
Total accumulated depreciation
Total capital assets being depreciated, net
Business -type activities capital assets, net
989,780
-
989,780
120,956,716
20,390,503
141,347,219
11,086,360
1,201,866
(384,460)
11,903,766
426,242
53,013
(75,989)
403,266
133,459,098
21,645,382
(460,449)
154,644,031
(116,329)
(37,606)
(153,935)
(53,531,615)
(4,958,875)
-
(58,490,490)
(5,919,850)
(1,034,386)
384,460
(6,569,776)
(237,807)
(47,547)
75,989
(209,365)
(59,805,601)
(6,078,414)
460,449
(65,423,566)
73,653,497
15,566,968
-
89,220,465
$82,418,678
$20,582,013
$(2,579,596)
$ 100,421,095
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:
General government $ 716,750
Public safety 1,658,471
Physical env ironment/transportation 240,025
Economic environment 590,701
Culture and recreation 987,694
Total Depreciation Expense - governmental activities $ 4,193,641
Business -type Activities
Water
$ 1,769,189
Sewer
3,119,667
Sanitation
460,939
Stormwater
728,619
Total Depreciation Expense - business -type activities $ 6,078,414
Page 160
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 7 CAPITAL LEASES
The City has entered into lease agreements for financing the acquisition of communications equipment. These lease agreements
qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum
lease payments as of the inception date.
The assets acquired through capital leases are as follows:
Machinery & equipment
Less: accumulated depreciation
Total
Governmental Activities
919,125
(285,535)
633,590
Amortization of equipment leased and capital leases is included in depreciation expense. The future minimum lease obligations and
the net present value of these minimum payments as of September 30, 2021 were as follows:
Year Ending September 30
Governmental Activities
2022
$ 102,769
2023
102,769
2024
102,769
2025
102,769
2026
102,769
Thereafter
205,538
Total minimum lease payments
719,383
Less: amount representing interest
(53,135)
$ 666,248
NOTE 8 LONG-TERM DEBT
Bonds Payable- Public Offering
The City issues bonds to provide funds for the acquisition and construction of major capital assets. In the event of default, bondholders
may take any remedies legally appropriate, and declare all principal and accrued interest is due and payable immediately. Bonds have
been issued for business -type activities.
In a prior year, the City issued Water and Sewer Revenue and Refunding Bonds, Series 2017 in the amount of $10,817,000 with
interest of 2.38% to partially refund the Water and Sewer Revenue and Refunding Bond Series 2009. This bond is secured by the net
revenue of the water and sewer system. The total principal and interest remaining to be paid on this series is $10,987,172. For the
fiscal year, principal and interest paid on this series was $1,097,915 and total pledged revenue was $6,670,645.
Page 161
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 8 LONG-TERM DEBT (CONTINUED)
The original amount of revenue bonds issued in prior years is described below. Revenue bonds outstanding at year end are as
follows:
Balance
Interest Rates
Original
September 30,
Business -Type Activities
and Dates
Maturity Amount
2021
Water and Sewer Revenue
2.38%
12/1/2018
Refunding Bonds,
to
Series2017
(6/1 &12/1)
12/1/2030 $ 10,817,000
$ 9,779,000
$ 9,779,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending September 30,
2022
2023
2024
2025
2026
2027-2031
Total
Business - Type Activities
Principal
Interest
879,000 $
222,280
900,000
201,110
920,000
179,452
943,000
157,283
965,000
134,578
5,172,000
313,469
9,779,000 $ 1,208,172
Notes Payable- Direct Borrowing
The City issued Public Improvement Refunding Revenue Note, Series 2016 in the amount of $5,331,196 with interest of 2.03% to
refund the Public Improvement Revenue Note, Series 2013. This note is secured by public services taxes and communications service
tax. Total principal and interest remaining to be paid on this series is $3,811,393. For the fiscal year, principal and interest paid on
this series was $476,815 and total pledged revenue was $5,793,731. In the event of default, the lender may seek enforcement of all
remedies available under the law. Any amounts due on the note that remain unpaid shall bear interest at the default rate until all
amounts then due are paid in full.
The City issued Infrastructure Sales Surtax Revenue Note, Series 2016 in the amount of $5,300,000 with interest of 2.12% to finance
the costs of the acquisition and construction of a new municipal police station. This note is secured by the infrastructure sales surtax.
Total principal and interest remaining to be paid on this series is $4,182,726. For the fiscal year, principal and interest paid on this
series was $418,724 and total pledged revenue was $4,258,795. In the event of default, the lender may seek enforcement of all
remedies available under the law. Any amounts due on the note that remain unpaid shall bear interest at the default rate until all
amounts then due are paid in full.
The City issued Master Plan Capital Projects Revenue Note, Series 2017 in the amount of $30,000,000 with interest of 2.63% to fund
master plan projects, Victory Pointe, Boat Ramp Relocation, Downtown Waterfront District Revitalization, Legacy Loop Trail Spur,
Public Wi-Fi Network, Public Works Complex, and City Limits Entryway Signs. This note is secured by a covenant to budget and
appropriate. Total principal and interest remaining to be paid on this series is $29,026,799. For the fiscal year, principal and interest
paid on this series was $2,423,725. In the event of default, the lender may seek enforcement of all remedies available under the law.
Any amounts in the project fund shall be applied to repayment of principal and interest.
Page 162
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 8 LONG-TERM DEBT (CONTINUED)
Revenue notes outstanding at year end are as follows:
Balance
Interest Rates
Original
September 30,
Governmental Activities
and Dates
Maturity
Amount
2021
Public Improvement Refunding
2.03%
12/1/2016
Revenue Note, Series 2016
(6/1 & 12/1)
to
12/1/2028
$
5,331,196
3,518,185
Infrastructure Sales Surtax
2.12%
12/1/2016
Revenue Note, Series 2016
(6/1 & 12/1)
to
12/1/2030
$
5,300,000
3,769,436
Master Plan Capital Projects
2.63%
12/1/2018
Revenue Note, Series 2017
(6/1 & 12/1)
to
12/1/2032
$
23,670,559
19,643,440
$ 26,931,061
Business -Type Activities
Master Plan Capital Projects
2.63%
12/1/2018
Revenue Note, Series 2017
(6/1 & 12/1)
to
12/1/2032
$
6,329,441
$ 5,252,561
Annual debt service requirements to maturity for revenue notes are as follows:
Governmental
Activities
Business
-Type Activities
Year Ending September 30,
Principal
Interest
Principal
Interest
2022 $
2,164,966 $
641,584
$
377,868
$ 133,174
2023
2,218,409
588,188
387,995
123,103
2024
2,272,175
533,472
398,122
112,765
2025
2,327,849
477,405
408,671
102,156
2026
2,383,858
419,962
419,220
91,269
2027-2031
11,850,649
1,206,958
2,267,839
282,769
2032-2033
3,713,155
98,297
992,846
26,284
Total $
26,931,061 $
3,965,866
$
5,252,561
$ 871,520
Page 163
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 8 LONG-TERM DEBT (CONTINUED)
Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2021 was as follows:
Beginning
Ending
Due Within
Balance
Additions
Deductions
Balance
One Year
Governmental Activities
Public improvement revenue notes
$ 3,919,507
$
$ (401,322)
$ 3,518,185
$ 409,469
Infrastructure revenue notes
4,104,694
(335,258)
3,769,436
342,365
Capital Projects revenue notes
21,021,066
(1,377,626)
19,643,440
1,413,132
Capital Leases
754,264
(88,016)
666,248
89,737
Other post employment benefits
9,508,353
673,383
-
10,181,736
-
Net pension liability
31,475
(31,475)
-
-
Compensated absences
1,549,860
180,770
(154,986)
1,575,644
157,564
Governmental activity long-term liabilities
$ 40,889,219
$ 854,153
$ (2,388,683)
$39,354,689
$ 2,412,267
Business -type Activities
Bonds payable -
Revenue bonds
$ 10,634,000
$ -
$ (855,000)
$ 9,779,000
$ 879,000
Capital Projects revenue notes
5,620,934
-
(368,374)
5,252,560
377,868
Other post employment benefits
3,044,903
206,970
3,251,873
-
Compensated absences
450,498
59,815
(45,051)
465,262
46,526
Business -type activity long-term liabilities
$ 19,750,335
$ 266,785
$ (1,268,425)
$18,748,695
$ 1,303,394
For governmental activities, compensated absences, net pension obligations, and net other postemployment benefit obligations
are generally liquidated by the general fund.
NOTE 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Interfund transfers for the year ended September 30, 2021 consisted of the following:
Transfers Out: General Fund
General Fund $
Infrastructure Fund -
Water Fund 1,135,342
Sewer Fund 1,210,730
Nonmajor Governmental -
$ 2,346,072
Transfers In
Nonmajor Govt
Total
$ 218,472 $
218,472
1,893,744
1,893,744
-
1,135,342
-
1,210,730
720,792
720,792
$ 2,833,008 $ 5,179,080
The majority of the transfers were to fund other capital projects and debt service payments. Transfers from the Water Fund and
Sewer Fund to the General Fund were based on a percentage of water and sewer sales.
Page 164
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED)
The composition of interfund advances as of September 30, 2021 is as follows:
Receivable Fund Pavable Fund Amount
Sewer Fund Stormwater Fund $ 275,000
Sanitation Fund General Fund 287,127
562,127
The balance due to the Sanitation fund from the General Fund is a result of an interfund loan for the purchase of a fire truck to be
repaid over ten years. The balance due to the Sewer fund from the Stormwater fund is for the upfront construction costs on the
Victory Pointe project that will be funded from various grants upon the completion of the project.
NOTE 10 RETIREMENT PLANS
The City maintains three separate single -employer, defined benefit plans for general employees, sworn police officers and
firefighters, as well as a defined contribution plan for general employees. The investment and administrative agent for the general
employees defined benefit plan is the Florida Municipal Pension Trust Fund, an agent of the multiple -employer Public Employee
Retirement System. The assets and benefits of the general employees defined contribution plan are administered by the Florida
League of Cities. The plan administration for the police and firefighters pension plans is the Pension Resource Center.
With recent adoption by the Florida Legislation of Chapter 2015-39, Laws of Florida, a separate Defined Contribution component of
the Police and Fire Retirement Plans was established on October 1, 2015 and will provide special benefits in the form of a
supplemental retirement, termination, death and disability benefits to be funded solely and entirely by premium tax monies. The
Share Plan benefits are additional to the benefits currently provided by the defined benefit component currently provided. Funds will
be allocated to eligible members on each valuation date.
Defined Benefit Pension Plans
Each plan is independently governed by separate boards of trustees. Assets may not be transferred between plans, or used for any
purpose other than to benefit each plan's participants as defined in their authorizing ordinances. The general employee's plan board
contracts with the Florida Municipal Pension Trust Fund (FMPTF), a private, not -for -profit corporation established by the Florida
League of Cities (FLC) for FLC members who wish to use its services. The FMPTF acts as a common investment and administrative
agent for its members, contracting with a bank custodian, investment manager and actuary to provide a commingled investment
fund and plan valuation services. This plan is included as part of the City's reporting entity in Pension Trust Funds. The Clermont
City Council adopted and may amend plan provisions by resolution. The Police and Firefighters' Pension Plans are administered by
a Pension Resource Center. These plans do not issue stand alone audit reports.
Stand-alone audited financial statements of the FMPTF are maintained on file at the FLC offices in Tallahassee, Florida, and are
available upon request to the Pension Services Division.
General Employees
Contributions
The City's actuarially determined contribution rate per the October 1, 2020 actuarial valuations is $5,582 for general employees.
Administrative costs are deducted from the net position of the plan.
Summary of Significant Accounting Policies
Plan Description - The general employees defined benefit pension plan is for general employees hired prior to September 30, 1985.
Plan Administration - The General Employees' Pension is administered by a Board of Trustees.
Page 165
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Plan Membership - At September 30, 2021 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 4
Inactive Plan Members Entitled to but Not Yet Receiving Benefits
Active Plan Members
4
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2021, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The components of the net pension liability (asset) of
the sponsor on September 30, 2021 were as follows:
Total Pension Liability $ 276,692
Plan Fiduciary Net Position (286,555)
Sponsor's Net Pension Liability (Asset) $ (9,863)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 103.56%
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2020, updated September 30, 2021 using
the following actuarial assumptions:
Inflation 2.77%
Salary Increases 0.00%
Investment Rate of Return 7.00%
Mortality rates were based on the sex -distinct rates set forth in the PUB-2010 Mortality Table with full generational improvements
in mortality using Scale MP-2018.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation)
are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation
as of September 30, 2021 are summarized in the following table:
Long Term
Expected Real Rate
Asset Class
Target Allocation
of Return
Core Bonds
15%
1.60%
Core Plus
15%
2.10%
U.S. Large Cap Equity
34%
4.60%
U.S. Small Cap Equity
11%
5.50%
Non-U.S. Equity
15%
6.70%
Core real estate
10%
5.00%
Total
100%
Page 166
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Discount rate
The discount rate used to measure the total pension liability was 7%. The projection of cash flows used to determine the discount
rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be
made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on
those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Increase (Decrease)
Total Pension
Plan Fiduciary Net
Liability
Position
Net Pension Liability
(a)
(b)
(a) - (b)
Balance at September 30, 2020
$ 305,055
$ 273,580
$ 31,475
Changes Due to:
Service Cost
-
-
-
Expected interest growth
21,619
19,304
2,315
Unexpected investment income
-
31,729
(31,729)
Demographic experience
-
-
Employer contributions
-
5,582
(5,582)
Benefit payments and refunds
(49,982)
(38,315)
(11,667)
Administrative expenses
-
(5,325)
5,325
Assumption changes
-
-
-
Balance at September 30, 2021
$ 276,692
$ 286,555
$ (9,863)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
General Pension Plan Net Pension Liability
Current Discount
1 % Decrease Rate
6.00% 7.00%
$ 46,044 $ (9,863) $
1% Increase
8.00%
18,195
Deferred outflows and inflows of resources
For the year ended September 30, 2021 the City will recognize a pension expense of ($38,509). On September 30, 2021 the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Differences Between Expected and Actual Experience
Net Difference Between Projected and actual Earnings on Pension Plan
Invesments
Deferred Outflows of Deferred Inflows of
Resources Resources
4,035
$ 4,035 $
Page 167
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended September 30:
2022 $ 1,499
2023 1,940
2024 596
2025
2026
Thereafter
Police Officers' Retirement -
The police officers' defined benefit pension plan is a local law, single employer, defined benefit pension plans as defined under
Florida Statutes, Chapters 175 and 185, which covers all sworn police officers. Employees are eligible to participate in the plan
immediately upon employment with the City, and they are vested in the plan after ten years of service. The plan is administered
by a board of Trustees.
Contributions
The City's actuarially determined contribution rate per the October 1, 2021 actuarial valuation was 20.19%. Employees must
contribute 5% of pensionable earnings. Administrative costs are deducted from the net position of the plan. Contributions from the
State received under Florida State Statutes 175 and 185 amounted to $379,293 in 2021 and were recorded as revenue and
expenditures in the general fund.
Benefits Provided
The plan provides retirement, disability, and pre -retirement death benefits. Normal retirement is defined as the attainment of age 55
and 10 years of service, or 20 years of service, regardless of age. The normal retirement benefit is the number of years of credited
service prior to October 1, 2002 multiplied by 2.25%, and the number of years of credited service after October 1, 2002 multiplied by
3%, and multiplied by the average final monthly compensation. Early retirement is defined as attainment of age 50 and 10 years of
service; however, the early retirement benefit is reduced by 3% for each year before the normal retirement date. Employees are 50%
vested after five years of service, increasing at the rate of 10% per year, up to 100% vesting after 10 years of service. Disability
benefits are the larger of the basic pension formula or 42% of average earnings for service connected disabilities. For non -service
connected disabilities, benefits are the larger of the basic pension formula or 25% of average earnings, and require 10 years of
service. Disability pension is offset as necessary to preclude the total of the participant's worker's compensation, disability pension,
and other City -financed disability or salary continuation benefit (excluding social security benefits) from exceeding average earnings.
Pre -retirement death benefits for vested members are the vested portion of the basic pension formula, reduced for payment prior to
normal retirement age (payable for 10 years certain to the beneficiary of a vested participant). For non -vested participants, the
benefit is the return of accumulated employee contributions.
Plan Membership
At September 30, 2021 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 24
Inactive Plan Members Entitled to but Not Yet Receiving Benefits 28
Active Plan Members 78
130
Page 168
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2021, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The components of the net pension liability (asset) of
the sponsor on September 30, 2021 were as follows:
Total Pension Liability $ 23,763,682
Plan Fiduciary Net Position (28,938,693)
Sponsor's Net Pension Liability (Asset) $ (5,175,011)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 121.78%
* does not include Share Plan balances or excess chapter 175/185 contributions
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2018, updated September 30, 2021 using
the following actuarial assumptions:
Inflation 2.50%
Salary Increases 5.50%
Investment Rate of Return 7.00%
Mortality rates were based on the sex -distinct rates set forth in the PUB-2010 Headcount -Weighted Employee Mortality Table,
with full generational improvements in mortality using Scale MP-2018.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation)
are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation
as of September 30, 2021 are summarized in the following table:
Long Term
Expected Real Rate
Asset Class
Target Allocation
of Return
Core Bonds
15%
1.60%
Core Plus
15%
2.10%
U.S. Large Cap Equity
34%
4.60%
U.S. Small Cap Equity
11%
5.50%
Non-U.S. Equity
15%
6.70%
Core real estate
10%
5.00%
Total
100%
Page 169
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Discount rate
The discount rate used to measure the total pension liability was 7%. The projection of cash flows used to determine the discount
rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be
made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on
those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Balance at September 30, 2019
Changes Due to:
Service Cost
Expected interest growth
Unexpected investment income
Demographic experience
Employer contributions
Employee contributions
Benefit payments and refunds
Administrative expenses
Assumption changes
Balance at September 30, 2020
Increase (Decrease)
Total Pension
Plan Fiduciary Net
Liability
Position
Net Pension Liability
(a)
(b)
(a) - (b)
$ 20,888,384
$ 23,337,027
$ (2,448,643)
1,335,386
-
1,335,386
1,535,299
1,652,130
(116,831)
-
3,307,309
(3,307,309)
260,114
-
260,114
-
1,084,478
(1,084,478)
-
268,568
(268,568)
(550,996)
(550,996)
-
-
(59,823)
59,823
295,495
-
295,495
$ 23,763,682
$ 29,038,693
$ (5,275,011)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
Current Discount
1 % Decrease Rate 1 % Increase
6.00% 7.00% 8.00%
Police Pension Net Pension Liability (Asset) $ (1,690,656) $ (5,175,011) $ (7,997,379)
Deferred outflows and inflows of resources
For the year ended September 30, 2021 the City will recognize a pension expense of $327,328. On September 30, 2021 the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred OuMows of Deferred Inflows of
Resources Resources
Differences between expected and actual experience $ 223,427 $ 544,974
Changes of assumptions 1,318,695 -
Net difference between projected and actual earnings on pension plan
investments - 3,216,032
$ 1,542,122 $ 3,761,006
Page 170
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended September 30:
2022 $
(503,110)
2023
(492,608)
2024
(711,442)
2025
(669,463)
2026
72,320
Thereafter
85,419
Deferred Retirement Option Program (DROP)
DROP is available to participants who have attained their normal retirement age and individuals may participate in the DROP for
up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per annum. The Police DROP balance as of
September 30, 2021 is $174,468.
Firefighters' Retirement
The firefighters' defined benefit pension plan is a local law, single employer, defined benefit pension plans as defined under
Florida Statutes, Chapters 175 and 185, which covers all full time and volunteer firefighters employed by the City. Employees are
eligible to participate in the plan immediately upon employment with the City, and they are vested in the plan after ten years of
service.
The plan is administered by a board of Trustees.
Contributions
The City's actuarially determined contribution rate per the October 1, 2020 actuarial valuation. Employees must contribute 4% of
pensionable earnings. Administrative costs are deducted from the net position of the plan. Contributions from the State received
under Florida State Statutes 175 and 185 amounted to $221,613 in 2021 and were recorded as revenue and expenditures in the
general fund.
Benefits Provided
The plan provides retirement, disability, and pre -retirement death benefits. Normal retirement is defined as the attainment of age 55
and 10 years of service, or 20 years of service, regardless of age. The normal retirement benefit is the number of years of credited
service prior to October 1, 2002 multiplied by 2.25%, and the number of years of credited service after October 1, 2002 multiplied by
3%, and multiplied by the average final monthly compensation. Volunteer firefighters earn a minimum benefit of $5 for each year of
service. Early retirement is defined as attainment of age 50 and 10 years of service; however, the early retirement benefit is reduced
by 3% for each year before the normal retirement date. Employees are 50% vested after five years of service, increasing at the rate
of 10% per year, up to 100% vesting after 10 years of service. Disability benefits are the larger of the basic pension formula or 42%
of average earnings for service connected disabilities. For non -service connected disabilities, benefits are the larger of the basic
pension formula or 25% of average earnings, and require 10 years of service. Disability pension is offset as necessary to preclude
the total of the participant's worker's compensation, disability pension, and other City -financed disability or salary continuation benefit
(excluding social security benefits) from exceeding average earnings. Pre -retirement death benefits for vested members are the
vested portion of the basic pension formula, reduced for payment prior to normal retirement age (payable for 10 years certain to the
beneficiary of a vested participant). For non -vested participants, the benefit is the return of accumulated employee contributions.
Page 171
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Plan Membership
At September 30, 2021 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits
Inactive Plan Members Entitled to but Not Yet Receiving Benefits
Active Plan Members
68
78
153
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2021, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The components of the net pension liability (asset) of
the sponsor on September 30, 2021 were as follows:
Total Pension Liability $ 23,825,081
Plan Fiduciary Net Position (29,191,362)
Sponsor's Net Pension Liability (Asset) $ (5,366,281)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 122.52%
* does not include Share Plan balances or excess chapter 175/185 contributions
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2018, updated September 30, 2021 using
the following actuarial assumptions:
Inflation 2.50%
Salary Increases 5.50%
Investment Rate of Return 7.00%
Mortality rates were based on the sex -distinct rates set forth in the PUB-2010 Headcount -Weighted Employee Mortality Table,
with full generational improvements in mortality using Scale MP-2018.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation)
are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Page 172
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation
as of September 30, 2021 are summarized in the following table:
Long Term
Expected Real Rate
Asset Class
Target Allocation
of Return
Core Bonds
15%
1.60%
Core Plus
15%
2.10%
U.S. Large Cap Equity
34%
4.60%
U.S. Small Cap Equity
11%
5.50%
Non-U.S. Equity
15%
6.70%
Core real estate
10%
5.00%
Total
100%
Discount rate
The discount rate used to measure the total pension liability was 7%. The projection of cash flows used to determine the discount
rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be
made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on
those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Increase (Decrease)
Total Pension
Plan Fiduciary Net
Liability
Position
Net Pension Liability
(a)
(b)
(a) - (b)
Balance at September 30, 2019
$ 20,734,056
$ 22,771,575
$ (2,037,519)
Changes Due to:
Service Cost
1,555,175
-
1,555,175
Expected interest growth
1,542,677
1,647,540
(104,863)
Unexpected investment income
-
3,216,507
(3,216,507)
Demographic experience
(18,454)
-
(18,454)
Employer contributions
-
1,606,558
(1,606,558)
Employee contributions
-
316,273
(316,273)
Benefit payments and refunds
(283,350)
(283,350)
-
Administrative expenses
-
(83,741)
83,741
Assumption changes
294,977
-
294,977
Balance at September 30, 2020
$ 23,825,081
$ 29,191,362
$ (5,366,281)
Page 173
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
Current Discount
1 % Decrease Rate 1 % Increase
6.00% 7.00% 8.00%
Fire Pension Net Pension Liability (Asset) $ (1,786,536) $ (5,366,281) $ (8,256,630)
Deferred outflows and inflows of resources
For the year ended September 30, 2021 the City will recognize a pension expense of $771,141. On September 30, 2021 the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual experience $ 189,768 $ 232,062
Changes of assumptions 1,997,104 -
Net difference between projected and actual earnings on pension plan
investments - 3,138,945
$ 2,186,872 $ 3,371,007
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended September 30:
2022
$ (288,379)
2023
(276,583)
2024
(382,671)
2025
(361,853)
2026
89,986
Thereafter
35,365
Deferred Retirement Option Program (DROP)
DROP is available to participants who have attained their normal retirement age and individuals may participate in the DROP for
up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per annum. The Fire DROP balance as of
September 30, 2021 is $0.
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 46, Article I, of the Clermont Code, and is available to all permanent general employees of the City, once they
have completed one year of employment. Employees are fully vested in the plan after ten years of service.
In a defined contribution plan, benefits depend solely on amounts contributed to the plan, plus investment earnings.
Contributions for, and interest forfeited by, employees who terminate employment before five years of service are used to reduce
the City's current period contributions.
Covered payroll for this Plan for fiscal year 2021 was $9,449,802; the City's total payroll for City employees was $21,116,986.
Page 174
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
The City contributes annually to the pension account of each active participant an amount equal to ten percent (10%) of the
employee's annual compensation. No contribution is required by employees. The City of Clermont City Council adopted and may
amend plan provision by resolution.
The actual contribution made by the City for fiscal year 2021 was $969,748.
Aggregate Amounts of All Pension Plans
The aggregate amounts for all of the City's defined benefit pension plans at September 30, 2021 are as follows:
Net Pension
Asset (Liability)
General Employees Pension Plan $ 9,863
Police Pension Plan 5,175,011
Firefighters Pension Plan 5,366,281
$ 10,551,155
Governmental Activities
Deferred Inflows Deferred Outflows Expense
$ - $ 4,305 $ (38,509)
(3,761,006) 1,542,122 327,328
(3,371,007) 2,186,872 771,141
$ (7,132,013) $ 3,733,299 $ 1,059,960
Individual Fiduciary Fund Statements
Individual statements of net position for the four plans included in the City of Clermont fiduciary funds are as follows:
City of Clermont, Florida
Individual Statements of Fiduciary Net Position
September 30, 2021
Assets:
Cash and cash equivalents
Investments:
U.S. Government& other debt securities
Equities
Total Investments
Total assets
General Police
Employees Officers Firefighters Total
Defined Pension Pension Employee
Benefit Trust Trust Pension Funds
$ 2,006 $ 643,785 $ 1,165,022 $ 1,810,813
89,692
10,138,005
10,424,538
20,652,235
194,857
19,962,465
19,511,951
39,669,273
284,549
30,100,470
29,936,489
60,321,508
286,555
30,744,255
31,101,511
62,132,321
Liabilities:
Refunds payable and other
Pending trades payable
Total liabilities -
Net Position Restricted for Pensions $ 286,555
1,441 8,928 10,369
7,860 607,657 615,517
9,301 616,585 625,886
$ 30,734,954 $ 30,484,926 $ 61,506,435
Page 175
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 10 RETIREMENT PLANS (CONTINUED)
Individual statements of the changes in fiduciary net position are as follows:
City of Clermont, Florida
Individual Statements of Changes in Fiduciary Net Position
Year Ended September 30, 2021
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benefit
Trust
Trust
Pension Funds
Additions:
Contributions:
Employer
$ 5,582
$ 787,031
$ 1,419,947
$ 2,212,560
Plan members
-
268,568
316,273
584,841
State
-
379,293
221,613
600,906
Total contributions
5,582
1,434,892
1,957,833
3,398,307
Investment earnings:
Net increase (decrease) in fair value of
investments
51,033
4,627,009
4,436,301
9,114,343
Interestand dividends
-
707,141
682,237
1,389,378
Investment expense
-
(23,400)
(20,600)
(44,000)
Total net investment earnings
51,033
5,310,750
5,097,938
10,459,721
Total additions
56,615
6,745,642
7,055,771
13,858,028
Deductions:
Benefits/distributions
38,315
709,190
273,693
1,021,198
Refund of contributions
-
20,526
15,434
35,960
Administrative expenses
5,325
59,823
83,741
148,889
Total deductions
43,640
789,539
372,868
1,206,047
Change in Net Position
12,975
5,956,103
6,682,903
12,651,981
Net Position Restricted for Pensions
Beginning of Year
273,580
24,778,851
23,802,023
48,854,454
End of Year
$ 286,555
$ 30,734,954
$ 30,484,926
$ 61,506,435
NOTE 11 OTHER POST EMPLOYMENT BENEFITS
In accordance with Florida Statutes Section 112.0801, the City makes continued group health and dental insurance through the
city's current provider available to retirees and eligible dependents provided certain service requirements and normal age
retirement requirements have been met. This plan is a single employer plan. The City is self -insured with respect to these
benefits and provides an explicit subsidy for coverage to retirees and their spouses based on the coverage selected. This plan
does not issue stand-alone financial statements.
Page 176
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 11 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
As of October 1, 2018, the valuation date, there were 346 active employees and 11 inactive employees currently receiving
benefits. The OPEB liability of $13,433,609 was measured as of September 30, 2021 and was determined by the actuarial
valuation. The covered payroll was $19,075,627, and the ratio of Net OPEB liability as a percentage of covered payroll was
70.42%.
Summary of Actuarial Methods & Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability
of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare
cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer
are subject to continual revision as actual results are compared with past expectations and new estimates are made about the
future.
The Other Postemployment Benefits Liability and Related Ratios Schedule, immediately following the notes to the financial
statements as required supplementary information, presents multi -year trend information about whether the actuarial value of the
plan assets is increasing or decreasing over time. The schedule includes one year.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities
and the actuarial value of assets, consistent with the long-term perspective of the calculations.
The Total liability was determined using the following actuarial assumptions and other inputs, applied to all periods include in the
measurement unless otherwise specified:
Initial Health Care Cost Trend Rate
Ultimate Health Care Cost Trend Rate
Fiscal Year the Ultimate Rate is Reached
Additional Information
Valuation Date
Actuarial Cost Method
Discount Rate*
Inflation Rate
Salary Rate Increase
Funded Ratio (Fiduciary Net Position as a percentage of Total OPEB Liability)
Covered Payroll
Net OPEB Liability as a Percentage of Covered Payroll
8.50%
5.00%
Fiscal year 2029
October 1, 2018
Entry Age Normal
2.66%
0.00%
2%
NA
19,075,627
70.42%
* The discount rate was based on the index provided by Bond Buyer 20-Bond General Obligation Index
based on the 20 year AA municipal bond rate as of September 30, 2019.
Page 177
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 11 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Below are the details regarding the Total OPEB liability for the measurement period from October 1, 2020, to September 30,
2021.
Total OPEB
Liability
Balance as of 9/30/2020
$ 12,553,256
Changes for the year:
Service Cost
760,368
Interest
333,917
Difference Between Expected & Actual Experience
-
Changes of Assumptions and Other Inputs
Benefit Payments(')
(213,932)
Other Changes
-
Net Changes
$ 880,353
Balance as of 9/30/2020
$ 13,433,609
(1) Includes the Implicit Rate Subsidy.
The following table presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were
calculated using a discount rate that is 1 percentage point lower or 1 percentage higher than the current discount rate:
Decrease Discount Rate Increase
1.66% 2.66% 3.66%
Total OPEB Liability $ 14,895,654 $ 13,433,609 $ 10,677,100
The following presents the total OPEB liability of the city, as well as what the City's OPEB liability would be if it were calculated
using healthcare trend rates that are 1 percentage point lower and 1 percentage point higher than the current healthcare cost
trend rates:
Decrease Health Care Increase
1% Trend 1%
Total OPEB Liability $ 10,393,549 $ 13,433,609 $ 15,275,896
For the fiscal year ended September 30, 2021, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Difference between expected and actual experience
Changes of assumptions
Total
Deferred Outflows of Deferred Inflows of
Resources Resources
$ 584,808 $ -
1,327,447 300,847
$ 1,912,255 $ 300,847
Page 178
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 11 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Amounts reported as deferred outflows or resources and deferred inflows of resources related to OPEB will be recognized in
OPEB expenses as follows:
Fiscal Year Ending September 30,
2022
$ 333,081
2023
333,081
2024
333,081
2025
333,081
2026
279,084
Thereafter
-
Postemployment benefits (OPEB's)
The City provides optional postemployment healthcare and dental insurance coverage to eligible individuals.
Eligible individuals - Employees of the City who are eligible for retirement or disability retirement under the City's retirement plans
may elect to participate in the City -sponsored insurance plans (healthcare and dental) at their cost.
Retiree monthly premiums for postemployment insurance coverage - retirees must pay monthly contributions in accordance with
City Resolution #2013-06 based upon plan costs as determined by the City in conjunction with insurance carriers. Failure to pay
insurance premiums will result in termination of insurance coverage without the ability to reinstate such coverage.
NOTE 12 RISK MANAGEMENT
During fiscal year 1990, the City established an internal service fund to account for its uninsured risk of loss for employee
medical and dental coverage. Under this program, the fund provides coverage for the first $181,500 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 $4,895,468.
There has been no reduction in insurance coverage from that carried in the prior year. Claims provided have not exceeded
insurance coverage in any of the past three fiscal years.
The general, water, sewer, sanitation and stormwater funds participate in the program and make payments to the internal service
fund based on the number of employees budgeted in each fund.
The claims liability of $334,618 represents claims processed through October 2021 which were applicable to the current fiscal
year and any additional claims are deemed immaterial. Changes to the current claims liability are as follows:
2021 2020
Claims Liabilities, beginning of year $ 206,017 $ 251,597
Incurred Claims 5,962,564 5,615,898
Payments on Claims (5,833,963) (5,661,478)
Claims Liabilities, end of year $ 334,618 $ 206,017
Page 179
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 13 COMMITMENTS AND CONTINGENCIES
Litigation
The City is engaged in various liability claims incidental to the conduct of its general government operations at September 30,
2021. While the ultimate outcome of the litigation cannot be determined at this time, management believes that any amounts not
covered by insurance, if any, resulting from these lawsuits would not materially affect the financial position of the City.
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions;
and natural disasters for which the City carries commercial insurance. The City has obtained excess insurance coverage with
varying retentions and limits to further limit exposure to large losses. There have been no significant reductions in insurance
coverage from the prior year and settlements have not exceeded insurance coverage during the past three years.
NOTE 14 FUND BALANCES
The City classifies the components of fund balance based on the classifications described below:
Nonspendable
Nonspendable funds include fund balance amounts that are (a) not in spendable form or (b) legally or contractually required to
be maintained intact.
Spendable Fund Balance
Restricted includes fund balance amounts that can be spent only for specific purposes stipulated by (a) external resource
providers such as creditors (by debt covenants), grantors, contributors, or laws and regulations of other governments; or (b)
imposed by law through constitutional provisions or enabling legislation.
Committed includes fund balance amounts that can be used only for the specific purposes determined by formal action of the
City Council, the City's highest level of decision making authority, with formal action occurring prior to the fiscal year end.
Commitments may be changed or lifted only by the City Council taking the same formal action (Resolution) that imposed the
constraint originally.
Assigned includes spendable fund balance amounts that are intended to be used for specific purposes that are neither
considered restricted or committed. The City Council is authorized to assign amounts for a specific purpose.
Page 180
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2021
NOTE 14 FUND BALANCES (CONTINUED)
Unassigned includes residual positive fund balance within the General Fund which has not been classified within the other above
mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures
exceed amounts restricted, committed, or assigned for those specific purposes.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless
there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending.
Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when
expenditures are made.
At September 30, 2021, the City's governmental fund balances were as follows:
Infrastructure
Other
Capital
Special
Governmental
General Fund
Projects
Revenue Fund
Funds
Total
Fund Balances
Nonspendable
Inventory/prepaids
$ 453,313
$
$
$ 13,295
$ 466,608
Spendable
Restricted for:
Police
100,643
-
838,149
938,792
Fire
-
1,945,180
1,945,180
Transportaton
24,742
24,742
Tree replacement
322,516
322,516
Building Services
-
1,983,207
1,983,207
Culture and recreaton
3,129,317
3,129,317
Community redevelopment
503,881
503,881
Infrastructure
2,684,980
-
2,684,980
Debt service
-
1,833,697
1,833,697
Cemetery
1,531,158
1,531,158
Assigned for:
Capital projects
-
11,215,232
-
11,215,232
Police/fire donations
4,287
4,287
Subsequent year expenditures
1,385,805
-
1,385,805
Unassigned
11,616,852
-
-
11,616,852
$ 13,908,158
$11,215,232
$ 2,684,980
$ 11,777,884
$39,586,254
Page 181
n
Page 182
REQUIRED SUPPLEMENTAL INFORMATION
Page 183
n
Page 184
City of Clermont, Florida
Schedule of Changes in Net OPEB Liability and Related Ratios
Last 10 Fiscal Years
9/30/2021
9/30/2020
9/30/2019
9/30/2018
Total OPEB Liability
Service cost $
760,368 $
740,666 $
721,475 $
496,316
Interest
333,917
309,219
288,724
312,754
Differences between expected and actual experience
-
-
181,592
-
Changes ofassumptions
2,106,772
(662,223)
Benefit Payments (2)
(213,932)
(242,837)
(236,545)
(109,600)
Other changes
-
-
-
-
Net change in total OPEB liability
880,353
807,048
3,062,018
37,247
Total OPEB liability, beginning (1)
12,553,256
11,746,208
8,684,190
8,646,943
Total OPEB liability, ending $
13,433,609 $
12,553,256 $
11,746,208 $
8,684,190
Plan fiduciary net position as a percentage of total OPEB liability
0.00%
0.00%
0.00%
0.00%
Covered payroll $
19,075,627 $
19,075,627 $
18,701,595 $
14,293,247
Net OPEB liability as a percentage of covered payroll
70.42%
65.81 %
62.81 %
60.76%
Notes to Schedule:
(1) Fiscal Year 2016 results calculated one year later using a 3.35% Discount Rate index as of 9/30/2017.
(2) Includes the Implicit Rate Subsidy.
Prior year information not available, will be updated when information is available
Page 185
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - General Employees
Year Ended September 30, 2021
Total Pension Liability
Service Cost
Interest
Differences Between Expected and Actual
Experience
Changes of Assumptions
Benefit Payments, including refunds of employee
contributions
Net Change in Total Pension Liability
Total Pension Liability -beginning
Total Pension Liability -ending (a)
Plan Fiduciary Net Position
Contributions -employer
Contributions -state
Contributions -employee
Net Investment Income
Benefit Payments, including refunds of employee
contributions
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - beginning
Plan Fiduciary Net Position - ending (b)
Net Pension Liability - ending (a)- (b)
Plan Fiduciary Net Position as a Percentage of Total
Pension Liability
Covered Payroll
Net Pension Liability as a Percentage of Covered
Payroll
9/30/2021
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
21,619
21,619
21,414
23,435
22,569
22,224
29,060
28,229
-
-
33,131
-
17,118
12,118
40,676
-
-
28,462
31,161
(10,549)
(49,982)
(49,982)
(53,410)
(51,013)
(57,338)
(61,435)
(63,484)
(56,412)
(28,363)
(28,363)
1,135
(27,578)
10,811
4,068
(4,297)
(28,183)
305,055
333,418
332,283
359,861
349,050
344,982
349,279
377,462
$ 276,692
$
305,055
$
333,418
$
332,283
$
359,861
$
349,050
$
344,982
$
349,279
5,582
11,018
11,018
8,767
8,767
-
-
-
51,033
16,320
14,396
24,889
44,469
29,829
2,613
40,560
(38,315)
(42,156)
(53,410)
(57,338)
(57,338)
(61,435)
(63,484)
(66,212)
(5,235)
(5,271)
(1,597)
(1,681)
(5,457)
(1,757)
(6,508)
(3,136)
13,065
(20,089)
(29,593)
(25,363)
(9,559)
(33,363)
(67,379)
(28,788)
273,580
293,669
323,262
348,625
358,184
391,547
458,926
487,714
$ 286,645
$
273,580
$
293,669
$
323,262
$
348,625
$
358,184
$
391,547
$
458,926
$ (9,953)
$
31,475
$
39,749
$
9,021
$
11,236
$
(9,134)
$
(46,565)
$
(109,647)
103.60%
89.68%
88.08%
97.29%
96.88%
102.62%
113.50%
131.39%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Page 186
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - Police
Year Ended September 30, 2021
9/30/2021
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
Total Pension Liability
Service Cost
$ 1,335,386
$ 1,048,755
$ 1,048,755
$ 941,659
$ 941,659
$ 836,661
$ 560,680
$ 524,531
Interest
1,535,299
1,300,909
1,290,431
1,170,292
1,049,633
749,652
860,884
723,246
Changes in Excess State Money
-
-
-
-
-
-
-
-
Differences Between Expected and Actual
Experience
260,114
(610,614)
(108,041)
(204,387)
(211,987)
(162,697)
Changes of Assumptions
-
576,133
3,155,202
Benefit Payments, including refunds of employee
contributions
(550,996)
(446,562)
(403,441)
(381,207)
(640,378)
(342,697)
(298,559)
(532,943)
Assumption changes
295,495
-
1,209
-
-
-
-
-
Net Change in Total Pension Liability
2,875,298
1,903,102
1,326,340
1,622,703
1,722,660
4,186,831
960,308
714,834
Total Pension Liability -beginning
20,888,384
18,985,282
17,658,942
16,036,239
14,313,579
10,126,748
9,166,440
8,451,606
Total Pension Liability -ending (a)
$ 23,763,682
$ 20,888,384
$ 18,985,282
$ 17,658,942
$ 16,036,239
$ 14,313,579
$ 10,126,748
$ 9,166,440
Plan Fiduciary Net Position
Contributions -employer
1,084,478
943,063
891,380
944,540
756,302
632,411
281,722
411,953
Contributions -state
-
-
-
-
-
-
240,486
217,653
Contributions -employee
268,568
238,416
175,526
120,269
116,332
108,806
99,188
95,733
Net Investment Income
4,959,439
2,346,071
1,330,033
1,245,288
1,908,188
1,115,432
(14,779)
1,043,670
Benefit Payments, including refunds of employee
contributions
(550,996)
(446,562)
(403,441)
(381,207)
(640,378)
(342,697)
(298,559)
(334,599)
Administrative Expense
(59,823)
(61,414)
(102,202)
(51,400)
(49,645)
(30,651)
(54,494)
(31,851)
Other
-
-
-
-
-
-
-
-
Net Change in Plan Fiduciary Net Position
5,701,666
3,019,574
1,891,296
1,877,490
2,090,799
1,483,301
253,564
1,402,559
Plan Fiduciary Net Position - beginning
23,237,027
20,217,453
18,326,157
16,448,667
14,357,868
12,874,567
12,621,003
11,218,444
Plan Fiduciary Net Position - ending (b)
$ 28,938,693
$ 23,237,027
$ 20,217,453
$ 18,326,157
$ 16,448,667
$ 14,357,868
$ 12,874,567
$ 12,621,003
Net Pension Liability - ending (a) - (b)
$ (5,175,011)
$ (2,348,643)
$ (1,232,171)
$ (667,215)
$ (412,428)
$ (44,289)
$ (2,747,819)
$ (3,454,563)
Plan Fiduciary Net Position as a Percentage of
Total Pension Liability
121.78%
111.24%
106.49% 103.78% 102.57% 100.31 % 127.13% 137.69%
Covered Payroll
$ 4,730,329
$ 3,813,876
$ 3,813,876 $ 3,366,613 $ 3,366,613 $ 3,366,613 $ 3,108,552 $ 2,424,191
Net Pension Liability as a Percentage of
Covered Payroll
-109.40%
-61.58%
-32.31%-19.82%-12.25% -1.32%-88.40%-142.50%
Page 187
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - Fire
Year Ended September 30, 2021
9/30/2021
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
Total Pension Liability
Service Cost
$ 1,555,175
$ 1,313,842
$ 1,313,842
$ 1,025,516
$ 1,025,516
$ 784,710
$ 524,325
$ 596,543
Interest
1,542,677
1,272,336
1,141,847
996,576
782,004
515,458
553,753
530,089
Changes in Excess State Money
-
-
-
-
-
-
-
-
Differences Between Expected and Actual Experience
(18,454)
(158,435)
(121,553)
633,143
(208,729)
(67,286)
Changes of Assumptions
294,977
-
1,079,623
634,356
2,505,255
-
BenefitPayments,including refunds of employee
(283,350)
(288,092)
(99,705)
(25,120)
(4,513)
(1,324)
(945)
(81,466)
Net Change in Total Pension Liability
3,091,025
2,298,086
3,277,172
1,875,419
3,070,506
3,595,370
1,009,847
1,045,166
Total Pension Liability -beginning
20,734,056
18,435,970
15,158,798
13,283,379
10,212,873
6,617,503
5,607,656
4,562,490
Total Pension Liability -ending (a)
$23,825,081
$20,734,056
$18,435,970
$15,158,798
$13,283,379
$10,212,873
$ 6,617,503
$ 5,607,656
Plan Fiduciary Net Position
Contributions -employer
1,606,558
1,649,080
1,585,514
1,278,757
797,699
491,818
646,065
438,902
Contributions -state
-
-
-
-
-
-
181,292
175,931
Contributions -employee
316,273
220,098
231,935
200,118
238,785
279,064
141,632
86,520
Net Investment Income
4,864,047
2,267,101
1,240,965
1,063,078
1,599,687
858,136
(32,699)
704,467
Benefit Payments, including refunds of employee
(283,350)
(288,092)
(99,705)
(25,120)
(4,513)
(1,324)
(945)
(756)
Administrative Expense
(83,741)
(65,477)
(98,170)
(35,839)
(49,761)
(28,346)
(40,885)
(24,109)
Other
-
-
-
-
-
-
-
-
Net Change in Plan Fiduciary Net Position
6,419,787
3,782,710
2,860,539
2,480,994
2,581,897
1,599,348
894,460
1,380,955
Plan Fiduciary Net Position - beginning
22,771,575
18,988,865
16,128,326
13,647,332
11,065,435
9,466,087
8,571,627
7,190,672
Plan Fiduciary Net Position - ending (b) $29,191,362 $22,771,575 $18,988,865 $16,128,326 $13,647,332 $11,065,435 $ 9,466,087 $ 8,571,627
Net Pension Liability - ending (a) - (b)
$ (5,366,281) $ (2,037,519) $ (552,895) $ (969,528) $ (363,953) $ (852,562) $ (2,848,584) $ (2,963,971)
Plan Fiduciary Net Position as a Percentage of Total 122.52% 109.83% 103.00% 106.40% 102.74% 108.35% 143.05% 152.86%
Covered Payroll $ 5,089,447 $ 4,438,530 $ 4,438,530 $ 3,602,745 $ 3,602,745 $ 2,798,049 $ 2,798,049 $ 2,798,049
Net Pension Liability as a Percentage of Covered Payroll-105.44%-45.91%-12.46%-26.91%-10.10%-30.47%-101.81%-105.93%
Page 188
City of Clermont, Florida
Schedule of Contributions and Investment Returns — General Employees
Year Ended September 30, 2021
9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014
Actuarially Determined Contribution $ 5,582 $ 11,018 $ 11,018 $ 8,767 $ 8,767 $ - $ - $ -
Contributions in Relation to the
Actuarially Determined Contribution 5,582 11,018 11,018 8,767 8,767
Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $
Covered Payroll -
Contributions as a Percentage of
Covered Payroll N/A N/A N/A N/A N/A
Notes to Schedule
Valuation Date 10/1/2018
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported
Methods and assumptions used to determine contribution rates
N/A N/A N/A
Actuarial Cost Method Aggregate
Amortization Method Level Percentage of Pay, open
Remaining Amortization Period 30 years
Asset Valuation Method Market Value
Inflation 2.77%
Salary Increases N/A
Interest Rate 7% per year, compounded annually, net of investment expenses
Schedule of Investment Returns 9/30/2021 9/30/2020 9/30/2019 913012018 9/30/2017 9/30/2016 9/30/2015 9130/2014
Annual money -weighted rate of return, net of
investment expenses 5.92% 4.23% 4.23% 7.00% 4.08% 4.08% 5.48% 8.55%
Page 189
City of Clermont, Florida
Schedule of Contributions and Investment Returns — Police
Year Ended September 30, 2021
9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016
9/30/2015 9/30/2014
Actuarially Determined Contribution
$ 1,084,478 $ 985,611 $ 936,834 $ 905,229 $ 875,593 $ 640,139 $
583,559 $ 629,606
Contributions in Relation to the
Actuarially Determined Contribution
1,084,478 943,063 891,380 944,540 756,302 632,411
522,208 670,126
Contribution Deficiency (Excess)
$ - $ 42,548 $ 45,454 $ (39,311) $ 119,291 $ 7,728 $
61,351 $ (40,520)
Covered Payroll
$ 4,730,329 $ 3,813,876 $ 3,813,876 $ 3,366,613 $ 3,366,613 $ 3,366,613 $
3,108,552 $ 3,108,552
Contributions as a Percentage of
Covered Payroll
22.93% 24.73% 23.37% 28.06% 22.46% 18.78%
16.80% 21.56%
Notes to Schedule
Valuation Date
10/1/2020
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Aggregate
Amortization Method
Level Percentage of Pay, open
Remaining Amortization Period
30 Years
Asset Valuation Method
Market Value
Salary Increases
5.50% per annum
Interest Rate
7% per annum (2.5% per annum is attributable to long-term inflation); this rate was used to discount all future benefit payments
Retirement
20% of eligible participants are assumed to retire at each of ages 52 through 54 and 100% of eligible participants are assumed to retire at normal retirement age
Other Decrements
Assumed employment termination is based on age and ranges from 5.00% at age 20 to 0.00% at age 50
Assumed disability is based on age and ranges from 0.03% atage 20 to 0.18% atage 50; 75% of disabilities are assumed to be service -connected
Mortality
Sex -distinct rates setforth in the PUB-2010 Mortality Table, with full generational improvements in mortality using Scale MP-2018
Non -investment Expenses
Liabilities have been loaded by 1.50% to account for non -investment expenses
Future Contributions
Contributions from the employer and employees are assumed to be made as legally required.
Schedule of Investment Returns
9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016
9/30/2015 9/30/2014
Annual money -weighted rate of return,
net of investment expenses
21.40% 4.23% 4.23% 7.00% 4.08% 4.08%
5.48% 8.55%
Page 190
City of Clermont, Florida
Schedule of Contributions and Investment Returns — Fire
Year Ended September 30, 2021
9/30/2020 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016
9/30/2015
9/30/2014
Actuarially Determined Contribution
$ 1,547,766 $ 1,648,674 $ 1,585,514 $ 1,284,255 $ 1,113,095 $ 647,476 $
603,000 $
614,833
Contributions in Relation to the
Actuarially Determined Contribution
1,606,558 1,649,080 1,585,514 1,278,757 797,699 491,818
827,357
668,800
Contribution Deficiency (Excess)
$ (58,792) $ (406) $ - $ 5,498 $ 315,396 $ 155,658 $
(224,357) $
(53,967)
Covered Payroll
5,089,447 4,438,530 4,438,530 3,602,745 3,602,745 2,798,049
2,798,049
2,798,049
Contributions as a Percentage of
Covered Payroll
31.57% 37.15% 35.72% 35.49% 22.14% 17.58%
29.57%
23.90%
Notes to Schedule
Valuation Date
10/1/2020
Actuarially determined contribution rates
are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported
Methods and assumptions used to determine
contribution rates:
Actuarial Cost Method
Aggregate
Amortization Method
Level Percentage of Pay, Open
Remaining Amortization Period
30 Years
Asset Valuation Method
Market Value
Salary Increases
5.50% per annum
Interest Rate
7% per annum (2.5% per annum is attributable to long-term inflation); this rate was used to discount all future benefit payments
Retirement
20% of eligible participants are assumed to retire at each of ages 52 through 54 and 100% of eligible participants are assumed to retire at normal retirement age
Other Decrements
Assumed employment termination is based on age and ranges from 4.30% atage 20 to 0.00% at age 50
Assumed disability is based on age and ranges from 0.03% at age 20 to 0.18% at age 50; 75% of disabilities are assumed to be service -connected
Mortality
Sex -distinct rates setforth in the PUB-2010 Mortality Table, with full generational improvements in mortality using Scale MP-2018
Non -investment Expenses
Liabilities have been loaded by 1.75% to account for non-investnentexpenses
Future Contributions
Contributions from the employer and employees are assumed to be made as legally required.
Schedule of Investment Returns
9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016
9/30/2015
9/30/2014
Annual money -weighted rate of return,
net of investment expenses
20.90% 4.23% 4.23% 7.00% 4.08% 4.08%
5.48%
8.55%
Page 191
n
Page 192
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Page 193
n
Page 194
City of Clermont, Florida
Major Governmental Funds
Year Ended September 30, 2021
Capital Projects Funds
Capital projects funds are used to account for financial resources that are restricted, committed, or assigned to expenditures for
capital outlays, including the acquisition or construction of capital facilities and other capital assets.
Capital Projects Fund This fund was established to account for financial resources
segregated for the acquisition or construction of major capital projects.
Page 195
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Capital Projects Fund
Year ended September 30, 2021
Revenues:
Intergovernmental revenues
Investment earnings
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Capital Outlay:
Physical environment
Economic environment
Total expenditures
Excess (deficiency) of revenues over expenditures
Net Change in Fund Balance
Fund Balances - beginning
Fund Balances - ending
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
700,000 $ 700,000 $ 200,000 $ (500,000)
175,000 175,000 13,874 (161,126)
- - 43,437 43,437
875,000 875,000 257,311 (617,689)
1,009
1,009
695
314
7,093,045
7,353,396
55,839
7,297,557
3,099,300
5,741,596
4,461,100
1,280,496
10,193,354
13,096,001
4,517,634
8,578,367
(9,318,354)
(12,221,001)
(4,260,323)
7,960,678
(9,318,354)
(12,221,001)
(4,260,323)
7,960,678
15,475,555
15,475,555
15,475,555
-
6,157,201 $
3,254,554 $
11,215,232 $
7,960,678
Page 196
City of Clermont, Florida
Other Governmental Funds
Year Ended September 30, 2021
Special Revenue Funds
Special revenue funds are used to account for specific revenue sources that are restricted, committed, or assigned to expenditures
for particular purposes.
Recreation Impact Fees Fund
Police Impact Fees Fund
Fire Impact Fee Fund
Building Services Fund
Fire Inspection Fund
Community Redevelopment Fund
Cemetery Fund
This fund was established to account for recreation impact fees
collected from new developments constructed in the City.
This fund was established to account for police impact fees collected
from new developments constructed in the City.
This fund was established to account for fire impact fees collected from
new developments constructed in the City.
This fund was established to account for the operations of the City's
building services department which are restricted for use in providing
building permitting and inspection services.
This fund was established to account for the operations of the City's
fire prevention and inspection services. Fund closed in FY2020.
This fund was established as a dependent taxing district. The
incremental annual increase in tax over the base years will be used to
fund projects designed to enhance and improve the described area.
This fund was established to account for the operations and
maintenance of the City's cemetery.
Debt Service Fund
Debt service funds are used to account for financial resources that are restricted, committed, or assigned to expenditures for
principal and interest.
Debt Service Fund
This fund was established to account for the accumulation of resources
and payment of bond principal and interest from governmental
resources.
Page 197
City of Clermont, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2021
Assets:
Cash and cash equivalents
Investments
Other receivables
Due from other governments
Prepaid costs
Total assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Total liabilities
Fund balances:
Nonspendable
Restricted
Total fund balances
Total liabilities and fund balances
Recreation
Impact Fees
$ 1,770,904 $
1,370,707
851
$ 3,142,462 $
Special Revenue
Police Impact
Fire Impact
Building
Fees
Fees
Services
467,958
$ 1,163,415 $
936,987
408,958
782,659
1,145,267
487
566
810
-
-
9,701
877,403
$ 1,946,640 $
2,092,765
$ 13,145 $ 39,254 $ 1,460 $ 42,794
- - - 57,063
13,145 39,254 1,460 99,857
- - - 9,701
3,129,317 838,149 1,945,180 1,983,207
3,129,317 838,149 1,945,180 1,992,908
$ 3,142,462 $ 877,403 $ 1,946,640 $ 2,092,765
Page 198
Special Revenue
Community
Redevelopment
Special Revenue
Cemetery
$ 262,364 $
569,499 $
304,921
971,376
364
917
3,325
269
$ 570,974 $
1,542,061 $
Total Nonmajor
ARPA Special
Total Special
Governmental
Revenue
Revenue Funds
Debt Service
Funds
1,821
$ 5,172,948
$ 1,733,118
$ 6,906,066
-
4,983,888
100,579
5,084,467
-
3,995
-
3,995
3,922
3,922
3,922
-
13,295
-
13,295
5,743
$ 10,178,048
$ 1,833,697
$ 12,011,745
$ 57,224 $
6,298 $
-
$ 160,175 $
$ 160,175
6,544
4,336
1,821
69,764
69,764
-
-
3,922
3,922
3,922
63,768
10,634
5,743
233,861
233,861
3,325
269
-
13,295
13,295
503,881
1,531,158
9,930,892
1,833,697 11,764,589
507,206
1,531,427
-
9,944,187
1,833,697 11,777,884
$ 570,974 $
1,542,061 $
5,743
$ 10,178,048 $
1,833,697 $ 12,011,745
Page 199
City of Clermont, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended September 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Impact fees/special assessments
Investment earnings
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Physical environment
Economic environment
Culture and recreation
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Uses:
Transfers in
Transfers out
Total other financing uses
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Special Revenue
Recreation Police Impact Fire Impact Building
Impact Fees Fees Fees Services
1,796,871
- - - 53,280
1,661,798 359,313 435,990 -
2,827 1,181 1,919 2,435
1,664,625 360,494 437,909 1,852,586
344,599 52,000 1,702,570
76,315
76,315
344,599
52,000
1,702,570
1,588,310
15,895
385,909
150,016
(569,544)
(151,248)
(569,544)
(151,248)
-
-
1,018,766
(135,353)
385,909
150,016
2,110,551
973,502
1,559,271
1,842,892
$ 3,129,317 $
838,149 $
1,945,180 $
1,992,908
Page1100
Community
Total Nonmajor
Redevelopment
ARPA Special
Total Special
Governmental
Special Revenue
Cemetery
Revenue
Revenue Funds
Debt Service
Funds
$ 451,411 $
$
$ 451,411
$
$ 451,411
-
1,796,871
1,796,871
40,397
3,922
44,319
44,319
-
184,700
-
237,980
237,980
-
-
2,457,101
2,457,101
928
2,243
11,533
602
12,135
105
5,230
-
5,335
-
5,335
492,841
192,173
3,922
5,004,550
602
5,005,152
-
-
3,922
3,922
-
3,922
-
-
2,099,169
2,099,169
-
92,096
92,096
92,096
457,531
-
457,531
457,531
-
76,315
-
76,315
-
2,114,206
2,114,206
-
-
-
-
693,685
693,685
457,531
92,096
3,922
2,729,033
2,807,891
5,536,924
35,310
100,077
-
2,275,517
(2,807,289)
(531,772)
-
-
-
2,833,008
2,833,008
(720,792)
-
(720,792)
-
-
(720,792)
2,833,008
2,112,216
35,310
100,077
1,554,725
25,719
1,580,444
471,896
1,431,350
8,389,462
1,807,978
10,197,440
$ 507,206 $
1,531,427
$
$ 9,944,187
$ 1,833,697
$ 11,777,884
Page1101
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Recreation Impact Fees
Year ended September 30, 2021
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original Final
Revenues:
Impact fees/special assessments
$ 1,000,000 $ 1,000,000
$ 1,661,798
$ 661,798
Investment earnings
7,200 7,200
2,827
(4,373)
Total revenues
1,007,200 1,007,200
1,664,625
657,425
Expenditures:
Current:
Culture and recreation
97,414
251,665
76,315
175,350
Total expenditures
97,414
251,665
76,315
175,350
Excess (deficiency) of revenues over expenditures
909,786
755,535
1,588,310
832,775
Other Financing Uses
Transfers out
(569,540)
(569,540)
(569,544)
(4)
Total other financing uses
(569,540)
(569,540)
(569,544)
(4)
Net Change in Fund Balances
340,246
185,995
1,018,766
832,771
Fund Balances - beginning
2,110,551
2,110,551
2,110,551
-
Fund Balances - ending
$ 2,450,797 $
2,296,546 $
3,129,317 $
832,771
Page1102
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Police Impact Fees
Year ended September 30, 2021
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
Revenues:
Impact fees/special assessments $ 300,000 $ 300,000 $ 359,313 $ 59,313
Investment earnings 3,600 3,600 1,181 (2,419)
Total revenues 303,600 303,600 360,494 56,894
Expenditures:
Current:
Public Safety:
Law enforcement
74,329
640,394
344,599
295,795
Total expenditures
74,329
640,394
344,599
295,795
Excess (deficiency) of revenues over expenditures
229,271
(336,794)
15,895
352,689
Other Financing Sources (Uses)
Transfers out
(151,248)
(151,248)
(151,248)
-
Total other financing sources (uses)
(151,248)
(151,248)
(151,248)
-
Net Change in Fund Balances
78,023
(488,042)
(135,353)
352,689
Fund Balances - beginning
973,502
973,502
973,502
-
Fund Balances - ending
$ 1,051,525 $
485,460 $
838,149 $
352,689
Page1103
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Impact Fees
Year ended September 30, 2021
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Impact fees/special assessments
$ 390,000 $
390,000
$ 435,990 $
45,990
Investment earnings
6,000
6,000
1,919
(4,081)
Total revenues
396,000
396,000
437,909
41,909
Expenditures:
Current:
Public safety:
Fire control
382
202,286
52,000
150,286
Total expenditures
382
202,286
52,000
150,286
Excess (deficiency) of revenues over expenditures
395,618
193,714
385,909
192,195
Net Change in Fund Balances
395,618
193,714
385,909
192,195
Fund Balances - beginning
1,559,271
1,559,271
1,559,271
-
Fund Balances - ending
$ 1,954,889 $
1,752,985
$ 1,945,180 $
192,195
Page1104
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Building Services
Year ended September 30, 2021
Revenues:
Licenses and permits
Charges for services
Investment earnings
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Uses:
Transfers in
Total other financing sources
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Budgeted Amounts
Actual Amounts
Original
Final
1,120,000 $
1,120,000
$ 1,796,871 $
43,500
43,500
53,280
7,200
7,200
2,435
1,170,700
1,170,700
1,852,586
1,707,017
1,707,017
(536,317)
(536,317)
1,842,892
1,306,575 $
1,730,827
1,702,570
1,730,827
1,702,570
(560,127)
150,016
17,498
17,498
(542,629)
1,842,892
1,300,263 $
150,016
1,842,892
1,992,908 $
Variance with
Final Budget -
Positive
(Negative)
676,871
9,780
(4,765)
681,886
28,257
28,257
710,143
(17,498)
(17,498)
692,645
692,645
Page1105
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Community Redevelopment Special Revenue
Year ended September 30, 2021
Revenues:
Taxes
Intergovernmental revenues
Investment earnings
Miscellaneous
Total revenues
Expenditures:
Current:
Economic development
Total expenditures
Excess (deficiency) of revenues over expenditures
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Budgeted Amounts
Actual Amounts
Original Final
453,229 $ 453,229
$ 451,411 $
- 29,210
40,397
4,000 4,000
928
- -
105
457,229 486,439
492,841
410,758
410,758
46,471
46,471
471,896
$ 518,367 $
961,588
961,588
(475,149)
(475,149)
471,896
(3,253) $
Variance with
Final Budget -
Positive
(Negative)
(1,818)
11,187
(3,072)
105
6,402
457,531
504,057
457,531
504,057
35,310
510,459
35,310
510,459
471,896
-
507,206 $
510,459
Page1106
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Cemetery
Year ended September 30, 2021
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Charges for services
$ 110,000 $
110,000
$ 184,700 $
74,700
Investment earnings
7,200
7,200
2,243
(4,957)
Miscellaneous
2,000
2,000
5,230
3,230
Total revenues
119,200
119,200
192,173
72,973
Expenditures:
Current:
Physical environment
115,288
115,800
92,096
23,704
Total expenditures
115,288
115,800
92,096
23,704
Excess (deficiency) of revenues over expenditures
3,912
3,400
100,077
96,677
Net Change in Fund Balances
3,912
3,400
100,077
96,677
Fund Balances - beginning
1,431,350
1,431,350
1,431,350
-
Fund Balances - ending
$ 1,435,262 $
1,434,750
$ 1,531,427 $
96,677
Page1107
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
ARPA Special Revenue
Year ended September 30, 2021
Revenues:
Intergovernmental
Total revenues
Expenditures:
Current:
General government
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Sources:
Transfers in
Total other financing sources
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Budgeted Amounts Actual Amounts
Original Final
Variance with
Final Budget -
Positive
(Negative)
$ $ $ 3,922 $ 3,922
3,922 3,922
15,000
3,922 11,078
15,000
3,922 11,078
(15,000)
- 15,000
15,000
(15,000)
15,000
(15,000)
Page1108
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Debt Service
Year ended September 30, 2021
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
Revenues:
Investment earnings $ 2,400 $ 2,400 $ 602 $ (1,798)
Total revenues 2,400 2,400 602 (1,798)
Expenditures:
Debt Service:
Principal 2,114,174 2,114,174 2,114,206 (32)
Interest and fiscal charges 693,681 693,681 693,685 (4)
Total expenditures 2,807,855 2,807,855 2,807,891 (36)
Excess (deficiency) of revenues over expenditures (2,805,455) (2,805,455) (2,807,289) (1,834)
Other Financing Sources:
Transfers in
2,832,993
2,832,993
2,833,008
15
Total other financing sources
2,832,993
2,832,993
2,833,008
15
Net Change in Fund Balances
27,538
27,538
25,719
(1,819)
Fund Balances - beginning
1,807,978
1,807,978
1,807,978
Fund Balances - ending
$ 1,835,516 $
1,835,516 $
1,833,697 $
(1,819)
Page1109
City of Clermont, Florida
Fiduciary Funds
Year Ended September 30, 2021
Agency funds are used to account for short-term custodial collections on resources on behalf of another individual, entity, or
government.
Pension Trust Funds
General Employees' Pension Trust Fund To account for the accumulation of resources to be used for retirement
annuity payments at the appropriate amounts and times in the future.
Resources are contributed at rates in accordance with an actuarial
study.
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 insurance premiums and the City contributes an
amount determined by an actuarial study.
Firefighters' 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 fire insurance premiums and the City contributes an
amount determined by an actuarial study.
Page1110
City of Clermont, Florida
Combining Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2021
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benefit
Trust
Trust
Pension Funds
Assets:
Cash and cash equivalents
$ 2,006 $
643,785 $
1,165,022
$ 1,810,813
Investments at fair value:
U.S. Government & other debt securities
89,692
10,138,005
10,424,538
20,652,235
Equities
194,857
19,962,465
19,511,951
39,669,273
Total Investments
284,549
30,100,470
29,936,489
60,321,508
Total assets
286,555
30,744,255
31,101,511
62,132,321
Liabilities:
Refunds payable and other
-
1,441
8,928
10,369
Pending trade payables
7,860
607,657
615,517
Total liabilities
-
9,301
616,585
625,886
Net Position Restricted for Pensions
$ 286,555 $
30,734,954 $
30,484,926
$ 61,506,435
Page1111
City of Clermont, Florida
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended September 30, 2021
Additions:
Contributions:
Employer
Plan members
State
Total contributions
Investment earnings:
Net increase (decrease) in fair value of
investments
Interest and dividends
Less: Investment expense
Total net investment earnings
Total additions
Deductions:
Benefits/distributions
Refund of contributions
Administrative expenses
Total deductions
Change in Net Position
Net Position Restricted for Pensions
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benefit
Trust
Trust
Pension Funds
$ 5,582 $
787,031 $
1,419,947
$ 2,212,560
-
268,568
316,273
584,841
-
379,293
221,613
600,906
5,582
1,434,892
1,957,833
3,398,307
51,033
4,627,009
4,436,301
9,114,343
-
707,141
682,237
1,389,378
-
(23,400)
(20,600)
(44,000)
51,033
5,310,750
5,097,938
10,459,721
56,615
6,745,642
7,055,771
13,858,028
38,315
709,190
273,693
1,021,198
-
20,526
15,434
35,960
5,325
59,823
83,741
148,889
43,640
789,539
372,868
1,206,047
12,975
5,956,103
6,682,903
12,651,981
Beginning of Year * 273,580 24,778,851 23,802,023 48,854,454
End of Year $ 286,555 $ 30,734,954 $ 30,484,926 $ 61,506,435
* Balance doesn't include $9,714,707 from the general employee defined contribution plan, excluded per Note 1
Page1112
STATISTICAL SECTION
Page1113
n
Page1114
City of Clermont, Florida
Statistical Section
Year Ended September 30, 2021
This part of the City of Clermont's comprehensive annual financial report presents detailed information as a context for
understanding what the information says about the government's overall financial health.
Contents
Page
Financial Trends 116
These schedules contain trend information to help the reader understand how the government's
financial performance and well-being have changed over time.
Revenue Capacity 126
These schedules contain information to help the reader assess the government's most significant
local revenue source, the property tax.
Debt Capacity 131
These schedules present information to help the reader assess the affordability of the government's
current level of outstanding debt and the government's ability to issue additional debt in the future.
Note: there are no limitations placed upon the amount of debt the City of Clermont may issue either
by the City Charter of the City's Code of Ordinances or by Florida Statutes.
Note: The City of Clermont has no general obligation bonds outstanding.
Demographic and Economic Information 138
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government's financial activities take place.
Operating Information 142
These schedules contain service and infrastructure data to help the reader understand how the
information in the government's financial report relates to the services the government provides and
the activities it performs.
Sources: Unless otherwise noted, the information in these schedules are derived from the comprehensive annual reports for the
relevant year.
Page1115
City of Clermont, Florida
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2012
2013
2014
2015
2016
Governmental activities
Net investment in capital assets
$
36,612
$
39,950
$
44,116
$
47,718
$
52,064
Restricted
8,876
9,490
9,918
9,400
6,402
Unrestricted
9,701
7,723
5,719
11,649
11,182
Total governmental activities net position
$
55,189
$
57,163
$
59,753
$
68,767
$
69,648
Business -type activities
Net investment in capital assets
57,241
57,863
56,680
56,586
60,150
Restricted
9,477
9,536
10,217
12,135
13,959
Unrestricted
20,436
24,191
27,054
26,943
26,050
Total business -type activities net position
$
87,154
$
91,590
$
93,951
$
95,664
$
100,159
Primary government
Net investment in capital assets
93,853
97,813
100,796
104,304
112,214
Restricted
18,353
19,026
20,135
21,535
20,361
Unrestricted
30,137
31,914
32,773
38,592
37,232
Total primary government net position
$
142,343
$
148,753
$
153,704
$
164,431
$
169,807
Page1116
Fiscal Year
2017
2018
2019
2020
2021
$ 31,918
$
35,262
$
40,318
$
44,045
$
51,596
7,815
8,547
9,589
12,479
14,910
30,117
27,925
24,795
23,874
21,847
$ 69,850
$
71,734
$
74,702
$
80,398
$
88,353
63,131
69,322
66,104
68,310
88,520
17,127
16,904
20,362
24,195
25,420
26,667
23,959
28,286
28,728
28,555
$ 106,925
$
110,185
$
114,752
$
121,233
$
142,495
95,049
104,584
106,422
112,355
140,116
24,942
25,451
29,951
36,674
40,330
56,784
51,884
53,081
52,602
50,402
$ 176,775
$
181,919
$
189,454
$
201,631
$
230,848
Page1117
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Governmental Activities:
General government
Public safety
Physical environment
Transportation/public works
Economic environment
Human services
Culture and recreation
Interest on long-term debt
Total governmental activities expenses
Business -type Activities:
Water
Sewer
Sanitation
Stormwater
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental Activities:
Charges for services:
General government
Public safety
Transportation/public works
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type Activities:
Charges for services:
Water
Sewer
Sanitation
Stormwater
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Fiscal Year
2012
2013
2014
2015
2016
$ 4,211
$ 3,258
$ 3,407
$ 3,848
$ 4,157
12,168
12,685
14,117
14,326
17,381
248
303
350
453
788
1,719
1,725
2,202
2,094
2,185
116
200
363
567
209
1,045
1,928
3,096
4,018
5,460
137
87
236
193
355
19,644
20,186
23,771
25,499
30,535
4,052
4,154
4,589
4,823
4,719
5,752
6,106
6,437
6,571
6,866
2,567
2,465
2,472
3,133
2,925
939
897
1,016
1,080
1,142
13,310
13,622
14,514
15,607
15,652
$ 32,954
$ 33,808
$ 38,285
$ 41,106
$ 46,187
$ 1,649
$ 2,117
$ 2,429
$ 2,356
$ 2,914
450
1,040
1,366
1,684
1,574
604
1,262
956
1,317
1,552
1,191
896
939
1,598
1,822
27
112
1,718
498
163
3,921
5,427
7,408
7,453
8,025
5,099
5,215
5,362
5,726
6,162
5,154
5,357
5,585
5,809
6,183
2,721
2,775
2,869
2,917
2,984
855
862
881
905
955
-
-
-
276
24
1,752
3,430
2,417
3,219
4,026
15,581
17,639
17,114
18,852
20,334
$ 19,502
$ 23,066
$ 24,522
$ 26,305
$ 28,359
Page1118
Fiscal Year
2017
2018
2019
2020
2021
$ 4,240
$
2,870
$
5,023
$
5,678
$
5,918
20,297
20,306
22,104
22,733
23,713
805
2,104
863
2,470
2,763
2,009
2,255
2,387
1,843
2,264
1,197
385
532
847
665
4,491
5,752
5,954
3,722
4,044
434
839
836
753
687
33,473
34,511
37,699
38,046
40,054
5,199
5,634
6,215
6,425
7,110
6,909
6,849
7,373
7,742
8,172
2,869
3,073
3,027
3,294
3,467
1,190
1,360
1,614
1,901
1,991
16,167
16,916
18,229
19,362
20,740
$ 49,640
$
51,427
$
55,928
$
57,408
$
60,794
$ 3,180
$
3,874
$
3,590
$
3,377
$
4,250
1,506
1,344
1,593
1,854
1,778
2,003
1,697
1,801
2,088
2,319
1,456
2,233
2,061
3,307
2,026
309
428
625
625
2,206
8,454
9,576
9,670
11,251
12,579
6,516
6,461
6,868
7,631
8,466
6,507
6,625
6,989
7,573
8,074
3,089
3,178
3,264
3,562
3,785
1,004
1,378
1,598
1,695
1,783
-
-
2,109
1
-
6,906
4,535
5,316
6,575
22,094
24,022
22,177
26,144
27,037
44,202
$ 32,476
$
31,753
$
35,814
$
38,288
$
56,781
Page1119
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2012
2013
2014
2015
2016
Net (Expense)/Revenue
Governmental activities
$
(15,721)
$
(14,759)
$
(16,363)
$
(18,045)
$
(22,510)
Business -type activities
2,271
4,018
2,600
3,245
4,683
Total primary government net expense
$
(13,450)
$
(10,741)
$
(13,763)
$
(14,800)
$
(17,827)
General Revenues and Other Changes in
Net Position
Governmental Activities:
Taxes:
Property taxes
$
5,535
$
5,350
$
6,533
$
7,193
$
8,998
Business taxes
113
111
126
130
140
Franchise taxes
2,189
2,123
2,379
2,502
2,712
Utility taxes
2,430
2,490
2,887
2,953
3,406
Intergovernmental -unrestricted
5,063
5,802
6,110
6,645
6,923
Unrestricted investment earnings
245
114
104
135
134
Gain (loss) on sale of capital assets
-
-
-
-
122
Miscellaneous
143
265
374
420
387
Transfers in/out
453
479
439
557
568
Special item
-
-
-
-
-
Total governmental activities
16,171
16,734
18,952
20,535
23,390
Business -type Activities:
Unrestricted investment earnings
289
149
198
272
260
Gain (loss) on sale of capital assets
-
18
2
(1,248)
120
Miscellaneous
-
-
-
-
-
Transfers in/out
(453)
(479)
(439)
(557)
(568)
Total business -type activities
(164)
(312)
(239)
(1,533)
(188)
Total primary government
$
16,007
$
16,422
$
18,713
$
19,002
$
23,202
Change in Net Position
Governmental activities
$
450
$
1,975
$
2,589
$
2,490
$
880
Business -type activities
2,107
3,706
2,361
1,712
4,495
Total primary government
$
2,557
$
5,681
$
4,950
$
4,202
$
5,375
"Business taxes previously reported as General Government Charges for Services
Page1120
Fiscal Year
2017
2018
2019
2020
2021
$ (25,019)
$
(24,935)
$
(28,029)
$
(26,795)
$
(27,477)
7,855
5,260
5,230
7,675
23,462
$ (17,164)
$
(19,675)
$
(22,799)
$
(19,120)
$
(4,015)
$ 9,748
$
10,747
$
11,945
$
13,090
$
14,354
133
160
157
162
144
2,619
2,817
3,142
3,203
3,360
3,328
3,446
3,873
4,202
4,467
7,257
7,864
8,139
8,403
9,969
197
458
1,089
632
70
86
289
193
-
-
486
342
352
623
721
1,367
2,013
2,106
2,177
2,346
25,221
28,136
30,996
32,492
35,431
255
379
1,295
953
106
24
31
150
29
40
(1,367)
(2,013)
(2,106)
(2,177)
(2,346)
(1,088)
(1,603)
(661)
(1,195)
(2,200)
$ 24,133
$
26,533
$
30,335
$
31,297
$
33,231
$ 202
$
3,202
$
2,968
$
5,697
$
7,954
6,767
3,657
4,568
6,480
21,262
$ 6,969
$
6,859
$
7,536
$
12,177
$
29,216
Page1121
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2012 2013 2014 2015 2016
General Fund
Reserved
$
-
$
-
$
$
-
$
Unreserved
-
-
-
Nonspendable
195
189
53
1,300
548
Restricted
224
257
312
247
259
Assigned
1,039
765
1,202
304
-
Unassigned
9,744
8,878
7,669
7,014
7,886
Total general fund
$
11,202
$
10,089
$
9,236
$
8,865
$
8,693
All other governmental funds
Reserved
$
-
$
-
$
-
$
-
$
-
Unreserved, reported in:
Special revenue funds
-
-
-
Capital projects fund
-
-
-
-
-
Nonspendable
890
939
1,064
1,466
1,922
Restricted
7,763
8,295
8,604
7,659
4,310
Assigned
668
-
-
-
1,226
Unassigned
-
-
-
-
-
Total all other governmental funds
$
9,321
$
9,234
$
9,668
$
9,125
$
7,458
Page1122
Fiscal Year
2017
2018
2019
2020
2021
578
641
283
356
453
266
228
205
359
448
3
3
18
3,227
1,390
7,137
7,104
8,182
7,859
11,617
$ 7,984
$
7,976
$
8,688
$
11,801
$
13,908
1,683
4
7
9
13
5,885
8,361
9,376
12,111
14,450
22,621
21,720
18,700
15,476
11,215
$ 30,189
$
30,085
$
28,083
$
27,596
$
25,678
Page1123
City of Clermont, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2012
2013 2014
2015
2016
Revenues
Taxes
$ 8,079
$ 7,951 $
9,546
$ 10,275
$ 12,544
Franchise fees
2,188
2,123
2,379
2,502
2,712
Licenses and permits
455
884
941
788
1,298
Intergovernmental
6,310
6,729
8,796
8,772
8,790
Charges for services
1,011
1,085
1,212
1,312
1,652
Fines and forfeitures
215
172
589
757
703
Impact fees/special assessments
679
1,909
1,401
1,858
1,702
Investment Earnings
244
108
99
131
131
Miscellaneous
474
622
915
1,047
1,007
Total revenues
19,655
21,583
25,878
27,442
30,539
Expenditures
Current:
General government
3,080
3,148
3,776
3,600
4,070
Public safety
11,352
12,579
13,571
14,844
17,520
Physical environment
247
307
423
744
777
Transportation
1,340
1,263
1,635
1,635
1,878
Economic environment
641
722
365
564
482
Human services
-
-
-
-
-
Culture and recreation
1,769
2,014
2,948
3,725
5,038
Capital outlay
2,073
2,638
9,381
2,695
8,514
Debt service:
Principal
490
3,080
571
884
6,280
Interest
143
122
177
198
342
Total expenditures
21,135
25,873
32,847
28,889
44,901
Excess (deficiency) of revenues
over expenditures
(1,480)
(4,290)
(6,969)
(1,447)
(14,362)
Other financing sources (uses)
Transfers in
1,118
3,091
9,337
3,857
11,897
Transfers out
(644)
(2,612)
(8,788)
(3,323)
(11,329)
Refunding and new bonds issued
-
2,612
6,000
-
10,631
Capital Leases
-
-
-
-
-
Sale of capital assets
-
-
-
-
1,321
Total other financing sources (uses)
474
3,091
6,549
534
12,520
Net change in fund balances
$ (1,006)
$ (1,199) $
(420)
$ (913)
$ (1,842)
Debt service as a percentage of noncapital
expenditures
3.5%
14.9%
3.5%
4.5%
20.2%
Note: Franchise Fees previously reported as Taxes.
**Note: Increase in % due to refunding of 2002 bonds.
Without the refunding the
% would be 3.4 % in 2013
***Note: Increase in % due to refunding of 2013 bonds.
Without the refunding the % would be 4.9% in 2016
Page1124
Fiscal Year
2017
2018
2019
2020
2021
$ 13,208
$ 14,353
$ 15,974
$ 17,453
$ 18,964
2,619
2,817
3,142
3,202
3,360
1,594
2,249
1,927
1,691
2,259
9,054
10,559
10,860
12,342
12,245
1,746
2,103
2,188
2,483
2,825
358
204
230
241
176
2,341
1,738
1,959
2,530
2,457
192
446
1,065
615
69
1,122
971
965
978
1,370
32,234
35,440
38,310
41,535
43,725
3,911
3,948
4,609
4,892
5,750
18,488
19,750
21,618
21,452
24,291
869
881
982
2,550
2,748
1,687
1,927
2,165
1,546
2,072
324
343
372
786
608
5,996
5,199
6,302
2,901
3,027
2,112
4,085
3,846
4,070
4,517
1,077
979
2,096
2,147
2,202
272
805
829
772
711
34,736
37,917
42,819
41,116
45,926
(2,502)
(2,477)
(4,509)
419
26,725
7,697
4,937
5,152
(25,957)
(6,332)
(2,834)
(2,974)
23,670
-
-
-
-
-
919
-
86
1,000
198
29
24,524
2,365
3,220
2,207
$ 22,022
$ (112)
$ (1,289)
$ 2,626
4.6%
5.7%
8.3%
8.2%
(2,201)
5,179
(2,833)
44
2,390
$ 189
7.2%
Page1125
City of Clermont, Florida
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal
Property
Utility
Business
Franchise
Year
Tax
Tax
Tax
Fees
2012
5,535
2,430
113
2,189
2013
5,350
2,490
ill
2,123
2014
6,533
2,887
126
2,379
2015
7,013
2,953
130
2,502
2016
8,795
3,406
140
2,712
2017
9,538
3,328
133
2,619
2018
10,549
3,446
160
2,817
2019
11,747
3,872
157
3,142
2020
12,880
4,202
162
3,203
2021
14,354
4,467
144
3,360
Taxes Included in Unrestricted Intergovernmental Revenues
Fiscal
Sales
State Revenue
Local Option
Year
Tax
Sharing
Gas Tax
Total
2012
1,296
383
296
1,975
2013
1,419
535
280
2,234
2014
1,567
635
290
2,492
2015
1,820
749
378
2,947
2016
1,848
819
482
3,149
2017
1,945
911
520
3,376
2018
2,172
1,013
548
3,733
2019
2,236
1,116
551
3,903
2020
2,345
1,053
522
3,920
2021
2,806
1,386
537
4,729
* Business Tax Receipts previously reported under Licenses
Total
10,267
10,074
11,925
12,598
15,053
15,618
16,972
18,918
20,447
22,325
Page1126
City of Clermont, Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Total
Estimated
Assessed
Year
Less:
Total Taxable
Direct
Actual
Value as a
Ended
Real*
Personal
Tax Exempt
Assessed
Tax
Taxable
Percentage of
Sep 30
Property
Property
Property
Value
Rate
Value
Actual Value
2012
2,171,815
209,726
598,187
1,783,354
3.1420
2,381,541
74.88%
2013
2,124,017
206,870
605,114
1,725,773
3.1420
2,330,887
74.04%
2014
2,185,702
205,140
611,063
1,779,779
3.7290
2,390,842
74.44%
2015
2,336,882
207,024
630,762
1,913,144
3.7290
2,543,906
75.20%
2016
2,574,360
215,752
652,769
2,137,343
4.2061
2,790,112
76.60%
2017
2,791,963
215,772
689,683
2,318,052
4.2061
3,007,735
77.07%
2018
3,057,114
233,448
724,930
2,565,632
4.2061
3,290,562
77.97%
2019
3,406,874
238,430
789,497
2,855,807
4.2061
3,645,304
78.34%
2020
3,723,782
247,430
848,948
3,122,264
4.2061
3,971,212
78.62%
2021
4,070,776
262,371
899,129
3,434,018
4.2061
4,333,147
79.25%
Source: Lake County Property Appraisers Office
* Information on breakdown of residential and commercial property is not available.
Page1127
City of Clermont, Florida
Property Tax Rates
Direct and Overlapping' Governments
Last Ten Fiscal YearS2
(per $1,000 of assessed value)
Direct Rate
Overlapping Rates
City of
Lake
South
Lake
St. Johns
Total
Clermont
Lake County
County
Lake
County
River Water
Direct &
Fiscal
Operating
Operating
Voted
Ambulance
School
Hospital
Water
Management
Overlapping
Year
Millage
Millage
Debt Service
MSTU
District
District 3
Authority
District
Rates
2012
3.1420
4.7309
0.1101
0.3853
7.3940
0.8000
0.2405
0.3313
17.1341
2013
3.1420
4.7309
0.1900
0.3853
7.3200
0.8000
0.2554
0.3313
17.1549
2014
3.7290
4.7309
0.1900
0.3853
7.1700
0.7900
0.2554
0.3283
17.5789
2015
3.7290
5.3856
0.1600
0.4629
7.2460
0.7633
0.2554
0.3164
18.3186
2016
4.2061
5.3051
0.1600
0.4629
7.1970
0.7633
0.2554
0.3023
18.6521
2017
4.2061
5.1180
0.1524
0.4629
6.8750
0.7332
0.2554
0.2885
18.0915
2018
4.2061
5.1180
0.1524
0.4629
6.6030
0.6898
0.2554
0.2724
17.7600
2019
4.2061
5.1180
0.1324
0.4629
6.3550
0.6432
0.4900
0.2562
17.6638
2020
4.2061
5.0734
0.1100
0.4629
6.8830
0.5886
0.3557
0.2414
17.9211
2021
4.2061
5.0327
0.1100
0.4629
6.6990
-
0.3368
0.2287
17.0762
Source: Lake County Property Appraisers Office
Overlapping rates are those of local and county governments that apply to property owners within the City of Clermont.
2 Taxes levied for the fiscal year are based on the prior year taxable value.
Operating millage is the only component of the City's direct rate
3 South Lake Hospital Tax District dissolved, effective Fiscal Year 2021.
Page1128
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
2021
2012
Percentage of
Percentage of
Taxable
Total Taxable
Taxable
Total Taxable
Assessed
Assessed
Assessed
Assessed
Taxpaver
Value
Rank
Value
Value
Rank
Value
Vista at Lost Lake TIC I LLC
66,957
1
1.95%
BR Citrus Tower LLC
48,966
2
1.43%
Advenir at Castle Hill LLC
44,887
3
1.31 %
John P. Adams & Ann D. Adams
Family LP
39,940
4
1.16%
26,014
1
1.46%
South Lake Hospital, Inc.
39,692
5
1.16%
12,012
6
0.67%
US 27-Clermont LLC
36,788
6
1.07%
Westdale Sundance LTD
29,495
7
0.86%
16,387
3
0.92%
Clermont Landing LLC
23,655
8
0.69%
Weingarten 1-4 Clermont Landing
20,580
9
0.60%
12,293
5
0.69%
Senninger Irrigation, Inc.
17,819
10
0.52%
Fountains at Clermont LLC
17,332
2
0.97%
Citrus Tower Development
14,386
4
0.81 %
Village at East Lake
11,655
7
0.65%
Progress Energy Florida, Inc
10,730
8
0.60%
Wal-Mart Stores East LP
10,106
9
0.57%
Target Corporation
9,236
10
0.52%
TOTAL
$ 368,779
10.74%
$140,151
7.86%
Source: Lake County Property Appraiser
Page1129
City of Clermont, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Collected within the
Year
Total Tax
Fiscal Year
of the Levy
Collections in
Total Collections to Date
Ended
Levy for
Percentage
Subsequent
Percentage
September
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
2012
5,603
5,325
95.0%
5
5,330
95.1 %
2013
5,422
5,153
95.0%
8
5,161
95.2%
2014
6,635
6,325
95.3%
9
6,334
95.5%
2015
7,133
6,793
95.2%
6
6,799
95.3%
2016
8,990
8,570
95.3%
4
8,574
95.4%
2017
9,750
9,299
95.4%
9
9,308
95.5%
2018
10,791
10,278
95.2%
6
10,284
95.3%
2019
12,012
11,430
95.2%
5
11,435
95.2%
2020
13,133
12,471
95.0%
7
12,478
95.0%
2021
14,444
13,677
94.7%
1
13,678
94.7%
Note: Property taxes become due and payable on November 1 st of each year. A four (4) percent
discount is allowed if the taxes are paid in November, with the discount declining by one (1)
percent each month thereafter. Accordingly, taxes collected will never be 100 percent of the
tax levy.
Page1130
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Fiscal
Governmental Activities
Year
Ended
Revenue Capital
Notes
Sept
Bonds Leases
Payable
2012
$ 3,080 $ -
$ -
2013
- -
2,612
2014
-
8,041
2015
-
7,157
2016
-
11,509
2017
-
34,102
2018
-
33,123
2019
838
31,109
2020
754
29,045
2021
666
26,930
Business -Type
Activities
Total
Percentage
Revenue
Notes
Outstanding
of Personal
Bonds
Payable
Debt
Income'
$ 14,963
$
$ 18,043
$ 0
14,979
-
17,591
2.19%
14,361
-
22,402
2.74%
13,728
-
20,885
2.45%
13,075
-
24,584
2.40%
12,403
6,329
52,834
4.87%
12,268
6,329
51,720
4.22%
11,467
5,980
49,394
3.76%
10,634
5,621
46,054
3.45%
9,779
5,253
42,628
2.72%
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics on page 138 for personal income and population data.
Per Capital
$ 605
582
706
646
709
1,476
1,329
1,212
1,040
954
Page1131
City of Clermont, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2021
(amounts expressed in thousands, except population and per capita amount)
Estimated
Amount
Debt
Percentage
Applicable to
Government Unit:
Outstanding
Applicable
(1) City of Clermont
Lake County
$ 105,354
14.02%
$ 14,771
Lake County School District
162,512
12.55%
$ 20,395
Subtotal, overlapping debt
35,166
City of Clermont, direct debt
27,596
100.00%
27,596
Total direct and overlapping debt
$ 62,762
Sources: Lake County 2020 Comprenhesive Annual Financial Report, Lake County School
Board 2020 Comprenhesive Annual Financial Report, and Lake County Property Appraiser's Office
The percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of Lake County's taxable assessed
value that is within the City of Clermont's boundaries and dividing it by Lake County's total taxable
assessed value.
Notes: Overlapping governments are those that coincide, at least in part, with geographic boundaries
of the city. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is borne by the property taxpayers of the City of Clermont. This
process recognizes that, when considering the government's ability to issue and repay long-term
debt, the entire debt burden borne by the property taxpayers should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for
repaying the debt, of each overlapping government.
The City of Clermont has no legal debt margin.
Page1132
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Public Improvement Revenue Refunding Note, Series 2012
Public
Communications
Total Revenue
Fiscal
Service
Service
Half -Cent
Available for
Debt Service
Year
Taxes
Tax
Sales Tax
Debt Service
Principal
Interest
Coverage
2012
2,430,440
1,257,217
1,295,687
4,983,344
490,000
143,350
7.87
2013
2,490,461
1,349,929
1,418,710
5,259,100
3,080,000
66,550
1.67
2014
2,887,161
1,216,076
1,567,249
5,670,486
570,599
25,361
9.51
2015
2,952,785
1,161,566
1,819,909
5,934,260
577,959
19,101
9.94
2016
3,405,642
1,138,032
1,848,294
6,391,968
585,609
12,760
10.68
2017
3,328,087
1,122,258
1,945,237
6,395,582
591,692
6,345
10.69
2018
3,446,407
1,112,440
2,172,025
6,730,872
286,141
1,559
23.40
2019
3,872,099
1,131,382
2,235,693
7,239,174
**
**
**
2020
4,201,714
1,232,777
2,344,875
7,779,366
**
**
**
2021
4,466,642
1,327,089
2,806,160
8,599,891
**
**
**
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Public Improvement Revenue Note, Series 2002 was refunded in 2012, this includes the payoff of the original bonds.
This Note was paid off in fiscal year 2018
Page1133
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Public Improvement Revenue Refunding Note, Series 2016
Public
Communications
Total Revenue
Fiscal
Service
Service
Available for
Year
Taxes
Tax
Debt Service
2012
-
-
-
2013
-
-
-
2014
2,887,161
1,216,076
4,103,237
2015
2,952,785
1,161,566
4,114,351
2016
3,405,642
1,138,032
4,543,674
2017
3,328,087
1,122,258
4,450,345
2018
3,446,407
1,112,440
4,558,847
2019
3,872,099
1,131,382
5,003,481
2020
4,201,714
1,232,777
5,434,491
2021
4,466,642
1,327,089
5,793,731
Debt Service
Principal
Interest
Coverage
-
-
N/A
-
-
N/A
-
82,350
49.83
305,772
178,337
8.50
5,694,228
195,148
0.77
255,000
105,635
12.34
377,841
99,212
9.56
385,511
91,464
10.49
393,337
83,558
11.40
401,322
75,493
12.15
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Public Improvement Revenue Note, Series 2013 was refunded in 2016, this includes the payoff of the original bonds.
Page1134
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Infrastructure Sales Surtax Revenue Note, Series 2016
Infrastructure
Fiscal
Sales
Debt Service
Year
Surtax
Principal Interest
Coverage
2012
-
-
-
N/A
2013
-
-
-
N/A
2014
-
-
-
N/A
2015
-
-
-
N/A
2016
2,964,966
-
27,466
107.95
2017
3,115,549
230,716
109,914
9.15
2018
3,397,707
314,809
104,132
8.11
2019
3,474,813
321,483
97,387
8.30
2020
3,603,194
328,298
90,499
8.60
2021
4,182,726
335,258
83,466
9.99
Note: Details regarding the city's outstanding debt can be found in the notes
to the financial statements.
Page1135
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Master Plan Capital Projects Revenue Note, Series 2017
Infrastructure
Recreation
Total Revenue
Fiscal
Sales
Impact
Stormwater
Sanitation
Available for
Debt Service
Year
Surtax
Fees
Fees
Fees
Debt Service
Principal
Interest
Coverage
2012
N/A
2013
N/A
2014
N/A
2015
N/A
2016
-
-
-
-
-
N/A
2017
3,115,549
1,495,242
1,002,859
3,087,701
8,701,352
-
N/A
2018
3,397,707
1,047,736
1,375,516
3,176,721
8,997,680
-
749,550
12.00
2019
3,474,813
1,157,840
1,596,720
3,263,253
9,492,626
1,657,000
767,210
3.92
2020
3,603,194
1,529,037
1,695,361
3,550,386
10,377,978
1,701,000
723,053
4.28
2021
4,182,726
1,661,798
1,782,926
3,784,598
11,412,048
1,746,000
677,725
4.71
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Page1136
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Water and Sewer Revenue and Refunding Bonds
Water and
Water and
Sewer
Sewer
Net Revenue
Fiscal
Operating
Operating
Available for
Debt Service
Year
Revenues'
Expenses2
Debt Service
Principal
Interest
Coverage
2012
10,496,535
6,377,695
4,118,840
580,000
643,307
3.37
2013
10,687,908
6,677,774
4,010,134
595,000
604,811
3.34
2014
11,108,744
7,090,566
4,018,178
615,000
586,461
3.34
2015
11,767,901
7,419,231
4,348,670
630,000
567,636
3.63
2016
12,578,644
7,272,716
5,305,928
650,000
548,236
4.43
2017
13,226,994
7,661,085
5,565,909
670,000
504,122
4.74
2018
13,379,152
8,104,464
5,274,688
10,920'000 3
211,101
0.47
2019
15,017,621
8,753,924
6,263,697
800,000
294,524
5.72
2020
16,069,244
9,069,911
6,999,333
828,000
267,058
6.39
2021
16,629,593
9,958,948
6,670,645
855,000
242,915
6.08
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
' Operating revenue is computed per bond resolution requirements. Investment earnings are included.
2Operating expense is computed per bond resolution requirements. Depreciation expense is not included.
3 Water and Sewer Revenue Refunding Bonds, Series 2009 was partially refunded in 2017, this includes the payoff of the
original bonds.
Page1137
City of Clermont, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Education
Income
Level in
(amounts
Per Capita
Years of
Fiscal
expressed in
Personal
Median
Formal
School
Unemploy-
Year
Population'
thousands)
Income
Agee
Schooling2
Enrollment3
ment Rate
2012
29,827
784,361
26,297
46.8
13.6
5,158
7.0%
2013
30,201
802,803
26,582
41.5
13.8
5,153
5.8%
2014
31,745
816,926
25,734
41.9
13.7
5,198
5.6%
2015
32,348
854,020
26,401
42.1
13.7
8,436
4.8%
2016
34,667
1,023,959
29,537
42.1
13.4
8,712
4.4%
2017
35,807
1,085,991
30,329
41.6
13.3
8,761
3.1 %
2018
38,906
1,226,940
31,536
42.3
13.4
8,841
2.7%
2019
40,750
1,312,598
32,211
42.5
13.9
8,745
2.8%
2020
44,301
1,335,011
30,135
42.1
14.0
8,625
6.7%
2021
44,687
1,405,049
31,442
42.2
14.0
9,040
3.7%
Sources: '
College of Business Administration, University of Florida - Bureau of Economic and
Business Research
2
Metro Orlando Economic Development Commission
3
Lake County School Board
4
U.S. Department of Labor, Bureau
of Labor Statistics
Page1138
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
2021 2012
Number
Percentage of
Number
Percentage of
of
Total City
of
Total City
Emolover
Employees
Rank
Employment
Employees
Rank
Employment
Total City Employment
19,268
22,680
South Lake Hospital, Inc.
1,600
1
8.30%
1,114
1
4.91%
Publix Supermarkets
991
2
5.14%
642
2
2.83%
Lake County School System
714
3
3.71 %
340
3
1.50%
City of Clermont
452
4
2.35%
257
7
1.13%
Walmart
392
5
2.03%
306
6
1.35%
Lowe's
356
6
1.85%
320
4
1.41 %
Target Corporation
334
7
1.73%
310
5
1.37%
Senningers
210
8
1.09%
Clermont Health & Rehab
180
9
0.93%
Chick Fil A
170
10
0.88%
Lake County Sheriffs Office
0.00%
Winn Dixie
207
8
0.91%
Progressive Plumbing Inc.
200
9
0.88%
Westminister Care of Clermont
175
10
0.77%
TOTAL
5,399
28.02%
3,871
17.07%
Source: Various employers in city limits & Bureau of Labor Statistics (BLS) of the U.S. Department of Labor
Note - FY 2021 data was not available, thus FY 2020 data is displayed. In the City's estimation, the figures did not change
significantly.
Page1139
Emplover
Kings Ridge
Esplanade at Highland Ranch
Taylor Morrison
City of Clermont
SLMH
Heritage Hills of Clermont HOA
Vista at Lost Lake TIC I LLC
Orlando VP LLC
Pulte Home Company LLC
Mattamy Homes
Lake County School System
Westminster Comm Care Svcs
Gardens at Citrus Towers
Sundance Clermont Apartments
Village at East Lake Apartments LTD
Osprey Ridge Apartments LTD
TOTAL
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
2021
2012
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
156,726
1
4.39%
262,412
1
10.97%
107,904
2
3.02%
54,485
3
1.53%
36,330
4
1.02%
51,830
2
2.17%
35,952
5
1.01 %
32,481
3
1.36%
26,998
6
0.76%
19,691
7
0.55%
8,646
10
0.36%
18,376
8
0.51 %
18,002
9
0.50%
17,297
10
0.48%
25,853
4
1.08%
15,314
5
0.64%
12,505
6
0.52%
11,483
7
0.48%
11,087
8
0.46%
8,799
9
0.37%
491,761
13.78%
440,410
18.42%
The City of Clermont had a total metered water flow of approximately 3,568,993 gallons for the
12-month period ending September 30, 2021
Page1140
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
2021
2012
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
Emplover
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
SLMH
29,484
1
2.62%
32,481
1
2.34%
Town of Oakland
22,080
2
1.96%
Orlando VP LLC
18,376
3
1.63%
Clermont TT LLC
11,954
4
1.06%
Vista at Lost Lake West
10,315
5
0.92%
Westminster Comm Care Service
10,142
6
0.90%
14,654
3
Vista at Lost Lake East
9,376
7
0.83%
8,646
5
0.62%
Carwash Headquarters
9,104
8
0.81 %
Mister Car Wash
6,890
9
0.61 %
BJ Wholewale
6,797
10
0.60%
Lake County Schools
17,651
2
1.27%
Villages at East Lake
11,087
4
0.80%
Emerald Lakes of Clermont
8,456
6
0.61 %
City of Clermont
7,688
7
0.55%
Hwy 27 17156 LLC (BP)
5,624
8
0.41 %
Oak Ridge Apartments
4,604
9
0.33%
Lost Lake Apartments
3,996
10
0.29%
TOTAL
134,518
11.93%
114,887
8.29%
The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,127,203
gallons for the 12-month period ending September 30, 2021
Page1141
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Function
General Government
Public Safety:
Police
Sworn personnel
Non sworn personnel
Fire
Firefighters
Other personnel
Building Services
Physical Environment
Transportation
Human Services
Culture & Recreation
Water
Sewer
Stormwater
Sanitation
Total
Source: City of Clermont Finance Department
Full-time Equivalent Employees as of September 30
2012 2013 2014 2015 2016
25.85 26.66 31.56 36.00 36.00
57.00
57.00
61.00
61.00
66.00
5.00
6.00
6.00
6.00
6.00
47.80
47.80
56.80
56.80
59.80
2.00
2.00
5.20
4.20
4.20
0.60
0.60
6.00
6.00
7.00
4.00
4.95
4.70
7.45
8.70
14.80
14.65
12.95
12.85
12.60
0.00
0.00
0.00
0.00
0.00
21.20
21.10
27.25
33.35
35.35
29.45
29.66
30.61
29.35
29.65
24.50
23.78
23.88
24.15
26.45
7.95
6.72
6.87
6.65
7.75
16.85
17.08
17.18
18.20
18.50
257.00
258.00
290.00
302.00
318.00
Page1142
Full-time Equivalent Employees as of September 30
2017 2018 2019 2020 2021
38.70 41.45 49.50 48.90 49.90
70.00
79.00
81.00
86.00
88.00
6.00
7.00
7.00
7.00
8.00
66.50
74.20
81.00
81.00
81.00
6.50
8.80
8.00
8.00
8.00
11.30
11.55
12.30
13.55
14.55
10.70
10.70
10.70
9.65
9.65
14.60
16.60
11.9
11.73
11.73
0.00
0.00
0.00
0.00
0.00
39.35
40.60
37.50
39.22
39.22
29.15
30.45
30.55
32.70
36.70
26.95
31.25
31.40
32.50
34.50
10.25
10.10
13.85
13.95
13.95
21.00
21.30
21.30
20.80
20.80
351.00
383.00
396.00
405.00
416.00
Page1143
City of Clermont, Florida
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
Function
2012
2013
2014
2015
2016
General Government
Municipal boundary (square miles)
14.95
14.95
15.18
16.65
16.78
Business Tax Receipts issued
2,237
2,483
1,955
1,701
1,639
A/P Checks issued
2,336
2,288
3,529
2,747
3,276
Commercial construction (units)
8
20
15
16
20
Commercial construction
(value in thousands)
15,203
34,268
17,288
8,625
42,241
Residential construction (units)
173
327
572
323
740
Residential construction
(value in thousands)
25,882
53,055
62,117
55,178
103,423
Public Safety:
Police
Auto accidents
1,259
1,402
1,357
1,573
1,909
Physical arrests
644
886
631
652
589
911 calls received
5,911
6,352
6,643
7,618
6,397
Evidence processed (pieces)
1,413
2,930
2,384
989
674
Parking violations
201
252
379
144
181
Traffic violations
5,389
7,225
4,623
6,879
7,421
Fire
Volunteer firefighters
6
-
-
-
-
Fire inspections completed
662
1,240
3,766
3,813
4,468
Emergency calls answered
3,320
3,414
4,127
4,202
6,001
Non -emergency calls answered
934
447
987
523
806
Water
Residential accounts
18,619
19,399
19,670
13,242 •
13,561
Commercial accounts
1,207
1,232
1,234
1,211
1,220
Annual water usage
(thousands of gallons)
2,391,485
2,392,022
2,406,183
2,521,397
2,572,852
Sewer
Residential accounts
12,936
13,407
13,718
13,578
13,860
Commercial accounts
1,166
1,194
1,055
1,074
1,091
Sources: Various government departments.
. Decrease in accounts due to software conversion combining multi -metered services
Page1144
Fiscal Year
2017 2018 2019 2020 2021
16.78
17.12
19
19.1
19.2
1,633
1,623
1,585
1,572
1,968
3,651
3,872
3,859
3,543
3,846
14
20
15
10
16
13,302
42,042
30,862
13,695
52,737
433
387
377
428
591
87,873
104,394
87,927
92,541
110,912
1,909
1,802
2,082
1,780
1,673
593
569
663
632
590
6,809
7,943
9,185
8,703
9,880
1,165
1,040
1,821
1,331
1,787
385
147
101
319
403
6,713
4,676
4,790
4,340
3,394
2,586
2,203
2,493
2,445
3,112
6,828
5,689
5,367
6,199
6,549
925
989
1,493
814
1,593
14,339
14,805
15,311
15,882
16,283
1,235
1,498
1,283
1,283
1,344
2,743,657
2,687,665
2,816,071
3,090,626
3,568,993
14,619
15,198
15,669
16,330
17,670
1,106
1,107
1,126
1,135
1,342
Page1145
Function
General Government
Public Safety:
Police
Police stations
Patrol units
Fire
Fire department facilities
Staffed fire stations
Fire hydrants
Fire apparatus
Staffed fire apparatus
ALS non -transport units
Transportation
Streets paved (miles)
Streetlights
Culture & Recreation
Number of parks
Parks acreage
Scenic linear trail (miles)
Tennis courts
Piers
Boat ramp
Water
Miles of water mains
Sewer
Miles of sanitary sewers
Miles of storm sewers
Sources: Various government departments.
Does not include private systems
City of Clermont, Florida
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2012
2013
2014
2015
2016
1
1
1
1
1
46
55
57
79
95
4
4
4
3
4
3
3
3
3
4
2,048
2,120
2,146
2,200
2,646
8
8
8
12
6
5
5
5
3
6
4
4
4
3
1
133.20
173.91
191.52
202.38
210.00
3,103
3,103
3,127
3,158
3,160
23
23
23
23
23
349.5
349.5
349.5
378.0
443.9
5.7
5.7
5.7
5.7
7.5
9
9
9
9
9
4
5
5
10
11
1
1
1
1
1
242.36
243.14
222.75
230.28
229.44
156.81
160.42
161.25
167.60
168.57
105.38
109.05
133.70
48.22
47.63
Page1146
Fiscal Year
2017 2018 2019 2020 2021
1
1
1
1
1
98
104
106
107
106
5
5
5
5
5
4
4
4
4
4
2,646
2,646
2,456
2,456
2,456
7
9
9
9
9
6
7
7
7
7
6
6
7
7
9
210.60
210.60
210.60
210.60
210.60
1,309
1,309
1,309
1,309
1,309
24
24
24
24
24
443.9
443.9
443.9
443.9
443.9
7.5
8.0
8.0
8.0
8.0
9
9
9
9
9
11
9
9
9
9
1
1
1
1
1
297.00
297.81
331.86
334.98
354.16
220.00
224.00
236.34
238.58
254.61
47.56
48.36
50.38
50.38
51.46
Page1147
n
Page1148
OTHER REPORTS
Page 1 149
n
Page1150
I 1
McDirmit Davis
934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Honorable Mayor and City Council
City of Clermont, Florida
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United
States, the financial statements of the governmental activities, business -type activities, each major fund, and the aggregate
remaining fund information of the City of Clermont, Florida, as of and for the year ended September 30, 2021, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report
thereon dated April 21, 2023.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Clermont, Florida's internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of City of Clermont's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the
normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A
material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility
that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely
basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these
limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses. We did identify certain deficiencies in internal control, described below that we consider to be significant
deficiencies.
ML 21-01 Timely and Regular Reconciliation of Accounts
Balance sheet and other accounts should be reconciled timely, on a regular basis to detect incorrect or missing transactions.
During our audit, we noted that several of the City's accounts, such as fixed assets, and pension accounts are not reconciled on
a regular basis during the year, or in a timely manner after year end, causing a delay in the year end annual audit. Due to staffing
limitations, account reconciliations were not performed timely. As a result, misstatements, whether due to fraud or error, would
not be detected in a timely manner. We recommend that the City implement procedures to ensure accounts can be reconciled on
a regular, ongoing basis throughout the year.
Management Response
The City's procedures will ensure that reconciliations are completed timely and will request outside actuarial reports meet the
City's reporting timeframes for completion of these reconciliations. We have hired an outside CPA firm to assist with fixed asset
reconciliations due to staffing limitations, this is an ongoing contract.
the trusted partner
Page1151
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Clermont's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The result of our tests disclosed instances of noncompliance, or other matters that are required to be reported
under Government Auditing Standards, and which are described below.
MIL 21-02- Timely Completion of Annual Audit
Florida Statutes require the annual audit to be submitted no later than nine month's after the City's fiscal year end. Due to
staffing issues, and delays with account reconciliations, the audit was not able to be completed in a timely manner. We
recommend the City implement procedures to insure annual audits are completed in a timely manner.
Management Response
The City has implemented the use of an outside CPA firm to assist with the reconciliations for completion of the audit in
compliance with Florida Statutes.
City's Response to Findings
The City's response to the findings identified in our annual audit are included in this report. The City's response was not
subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control
and compliance. Accordingly, this communication is not suitable for any other purpose.
Orlando, FL
April 21, 2023
Page1152
I 1
McDirmit Davis
I MJ
934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH
MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
Honorable Mayor and City Council
City of Clermont, Florida
Report on Compliance for Each Major Federal Program
We have audited the City of Clermont, Florida's (the City) compliance with the types of compliance requirements described in the
OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the
year ended September 30, 2021. The City's major federal programs are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards
applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the
types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing
standards generally accepted in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining,
on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our
audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could
have a direct and material effect on each of its major federal programs for the year ended September 30, 2021.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types
of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's
internal control over compliance with the types of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion
on compliance for each major federal program and to test and report on internal control over compliance in accordance with the
Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance.
the trusted partner
Page1153
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control
over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is
not suitable for any other purpose.
�I M
Orlando, Florida
April 21, 2023
Page1154
City of Clermont, Florida
Schedule of Expenditures of Federal Awards
Year Ended September 30, 2021
Federal Grantor
Pass -Through Grantor
Grantor program title
U.S. Department of Housing and Urban Development (HUD)
State of Florida, Department of Economic Opportunity
Community Development Block Grant (CDBG)'
Total U.S. Department of Housing and Urban Development (HUD)
U.S. Department of Transportation
State of Florida, Department of Environmental Protection
Recreational Trails Program
Total U.S. Department of Transportation
U.S. Department of Justice (DOJ)
Equitable Sharing
Bulletproof Vest Partnership
State of Florida, Department of Law Enforcement
Dirver Feedback Signs
Civil Unreset/Mobile Field Force Equipment
Lake County
Mobile Crisis Response Officer
Total U.S. Department of Justice (DOJ)
U.S. Department of Treasury
COVID- Coronavirus Relief Fund
Coronavirus State and Local Fiscal Recovery Funds
Total Department of Treasury
Executive Office of the President -Office of National Drug Control Policy
Seminole County Sheriff Office
High Intensity Drug Trafficking Areas
Organized Crime Drug Enforcement Task force
Total Executive Office of the President -Office of National Drug Control Policy
U.S. Department of Homeland Security (DHS)
State of Florida, Department of Emergency Management
Staffing for Adequate Fire and Emergency Response (SAFER)
Total U.S. Department of Homeland Security (DHS)
Total Expenditures of Federal Awards
" Denotes a major program
CFDA Agency or Pass -through
Number Entity Grant Number Expenditures
14.228 19DB-ON-06-45-02-N17 $ 719,764
719,764
20.219
T18027
200,000
200,000
16.922
FL0350300
49,410
16.607
FY19
13,736
16.738
2020-JAGC-LAKE-1-Y5-156
8,363
16.738
2020-JAGC-LAKE-20-5R-112
7,469
16.745
BJA-2018-13605/13907
57,890
136,868
21.019 Agreement # Y2267 281,641
21.027 3,922
285,563
95.001 G18CF0008A 10,825
95.001 WG-CR-0017 626
11,451
97.083 EMW-2016-FH-00366 62,866
62,866
$ 1,416,512
See accompanying Notes to Schedule of Expenditures of Federal Awards.
Page1155
City of Clermont, Florida
Notes to Schedule of Expenditures of Federal Awards
Year Ended September 30, 2021
NOTE 1 BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of the City of
Clermont, Florida (the City) under programs of the federal government for the year ended September 30, 2021. The information in
this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the
Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net position or cash flows of the City.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Therefore, amounts reported on the
Schedule are based on expenditures incurred as of September 30, 2021, even if grant or loan was received subsequent to that date.
Pass -through entity identifying numbers are presented where available.
NOTE 3 INDIRECT COST RATE
The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Page1156
City of Clermont, Florida
Schedule of Findings and Questioned Costs
Year Ended September 30, 2021
Section I - Summary of Independent Auditor's Results:
Financial Statements
Type of auditors' report issued:
Internal control over financial reporting:
• Material weakness identified?
• Significant deficiency identified
Noncompliance material to financial
Statements noted?
Federal Awards
Type of auditors' report issued on compliance for major
federal programs:
Internal control over major Federal program:
• Material weakness identified?
• Significant deficiency identified
Any audit findings disclosed that are required to be reported in
accordance with section 200.516 of the Uniform Guidance?
Identification of major federal awards
Dollar threshold used to distinguish between
type A and type B programs
Auditee qualified as a low -risk auditee?
Section II - Financial Statement Findings:
Section III - Federal Award Findings and
Questioned Costs:
Section IV - Federal Award Summary
Schedule of Prior Year Findings:
Unmodified
Yes X No
X Yes _ None reported
X Yes No
Unmodified
Yes X No
Yes X None reported
Yes X No
CFDA No. 14.228 Community Development Block Grant
$750,000
X Yes _ No
None
None
There were no audit findings for the year ended
September 30, 2020.
Page1157
McDirmit Davis
I MJ
MANAGEMENT LETTER
Honorable Mayor and City Council
City of Clermont, Florida
934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
Report on the Financial Statements
We have audited the financial statements of the City of Clermont, Florida, as of and for the fiscal year ended September 30,
2021, and have issued our report thereon dated April 21, 2023.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Florida Auditor
General.
Other Reporting Requirements
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards;
Independent Auditor's Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control
over Compliance; Schedule of Findings and Questioned Costs; and Independent Auditor's Report on an examination conducted
in accordance with ACIPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with
Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated April 21, 2023, should
be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i.)l ., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to
address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to
address findings and recommendations made in the preceding financial audit report, except as noted below:
Tabulation of Uncorrected Audit Findings
Current Year Finding # 2019-20 FY Finding # 2018-19 FY Finding #
ML 21-01 ML 20-01 N/A
ML 21-02 ML 20-02 N/A
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary
government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to
the financial statements. This information has been disclosed in the notes to the financial statements.
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us apply appropriate procedures and communicate the
results of our determination as to whether or not the City of Clermont, Florida has met one or more of the conditions described in
Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined
that the City of Clermont, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment
procedures for the City. It is management's responsibility to monitor the City of Clermont, Florida's financial condition, and our
financial condition assessment was based in part on representations made by management and the review of financial information
provided by same.
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Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial
management. In connection with our audit, we did not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant
agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less
than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of This Letter
Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida
Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the council, and
applicable management, and is not intended to be and should not be used by anyone other than these specified parties.
Orlando, Florida
April 21, 2023
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934 North Magnolia Avenue, Suite 100
McDirmit Davis Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
mj
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH
THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES
The Honorable Mayor and City Council
City of Clermont, Florida
We have examined City of Clermont, Florida's (the City) compliance with the requirements of Section 218.415, Florida Statutes, during
the year ended September 30, 2021. Management is responsible for the City's compliance with those requirements. Our responsibility
is to express an opinion on the City's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public
Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the
Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the City's compliance
with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our
examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's
compliance with specified requirements.
In our opinion, City of Clermont, Florida complied, in all material respects, with the aforementioned requirements for the year ended
September 30, 2021.
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Orlando, Florida
April 21, 2023
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