Comprehensive Annual Financial Report - 2021-2022L
2
103
JAN
I 10
e -% 9wNwww
Annual Comprehensive
FINANCIAL REPORT
For Fiscal Year Ending September 30, 2022
7E
�,
'0' f ROOM
I IIT4A--1 - " 102
22.{4.4
� I}
I�I'
I
ij
— (r
_ � e
-.y
v�r
-1
C L E �'T(16N-r
3
41�-30
= MEJAI
CH
--
>I i� I 1D9 1�
As we continue to grow and thrive, our services must also grow!
Construction is underway on Clermont's new Public Services Facility.
The $17 million facility will be located at 12838 Hancock Road. It will feature a
5,240 square -foot administrative building and a 23,340 square -foot
compound for City fleet maintenance activities.
J
CITY OF CLERMONT
FLORIDA
Annual Comprehensive Financial Report
For The Year Ended September 30, 2022
ONCLEF _ T
�oice of Champion
Prepared by:
Finance Department
n
City of Clermont, Florida
Table of Contents
Page
Introductory Section
Letter of Transmittal 3
GFOA Certificate of Achievement for Excellence in Financial Reporting 8
Organization Chart 9
List of Elected and Appointed Officials 10
Financial Section
Independent Auditor's Report
13
Managements 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 Changes in Fund Balance - Budget and Actual -
Infrastructure Special Revenue Fund
36
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
ARPA Special Revenue Fund
37
Statement of Net Position - 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
Statement of 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
83
Schedule of Changes in Net Pension Liability and Related Ratios - General Employees
84
Schedule of Changes in Net Pension Liability and Related Ratios - Police
85
Schedule of Changes in Net Pension Liability and Related Ratios - Fire
86
Schedule of Contributions and Investment Returns - General Employees
87
Schedule of Contributions and Investment Returns - Police
88
Schedule of Contributions and Investment Returns - Fire
89
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
94
Nonmajor Governmental Funds
Combining Balance Sheet- Other Governmental Funds
96
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Other
Governmental Funds
98
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 100
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Police Impact Fee Special Revenue Fund 101
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Fire Impact Fee Special Revenue Fund 102
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Building Services Special Revenue Fund 103
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Community Redevelopment Special Revenue Fund 104
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Cemetery Special Revenue Fund 105
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
DebtService Fund 106
Fiduciary Funds
Combining Statementof Fiduciary Net Position - Fiduciary Funds 108
Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds 109
Statistical Section
Financial Trends:
Net Position by Component
114
Changes in Net Position
116
Fund Balance - Governmental Funds
120
Changes in Fund Balances - Governmental Funds
122
Revenue Capacity:
Governmental Activities Tax Revenues by Source
124
Assessed Value and Estimated Actual Value of Taxable Property
125
Property Tax Rates- Direct and Overlapping Governments
126
Principal Property Taxpayers
127
Property Tax Levies and Collections
128
Debt Capacity:
Ratios of Outstanding Debt by Type
129
Direct and Overlapping Governmental Activities by Debt
130
Pledged -Revenue Coverage
131
Demographic and Economic Information:
Demographic and Economic Statistics
136
Principal Employers
137
Principal Water Customers
138
Principal Sewer Customers
139
Operating Information:
Full-time Equivalent City Government Employees by Function
140
Operating Indicators by Function
142
Capital Asset Statistics by Function
144
City of Clermont, Florida
Table of Contents
Page
Other Reports
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 149
Independent Auditor's Report on Compliance for Each Major Federal Program and Report on
Internal Control Over Compliance in Accordance with the Uniform Guidance 151
Schedule of Expenditures of Federal Awards 153
Notes to Schedule of Expenditures of Federal Awards 154
Schedule of Findings and Questioned Costs 155
Management Letter 156
Independent Auditor's Report on Compliance with the Requirements of Section 218.415, Florida
Statutes 158
n
INTRODUCTORY SECTION
Page 1
n
Page 2
BRIAN M. BULTHUIS
CITY MANAGER
DER
C WON T
Choice of Champions 352-241-7358
BBulthuis@Clermontfl.org
April 1, 2024
Honorable Mayor Tim Murry,
Council Members and Citizens of the City of Clermont, Florida
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, 2022. 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, 2022.
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, 2022 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, 2022 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
Page 3
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 45,812. 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
Page 4
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 6,906 residents or 17.8%. Clermont's economic factors for FY 2022 indicated continued 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
$5,563 or 17.6% over the last 5 years. The City's unemployment rate decreased from 2.7% to 2.6% 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 8.28% 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
Page 5
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 8t" 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 construction project is underway, and involves the
expansion and relocation of the existing antiquated facility. The new facility will be located on
Hancock Road. The $17 million facility will feature a 5,240 square -foot administrative building
and a 23,340 square -foot compound for city fleet maintenance activities. Construction is
expected to be completed in Fiscal Year 2023 or 2024.
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 designed to take the
facility from the existing permitted capacity of 4 MGD to 6.5 MGD with the construction starting
during 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. That was the 33rd
consecutive year the City received the prestigious award. A Certificate of Achievement is valid for a
period of one year only. The City did not submit a report for the fiscal year ending September 30, 2021.
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.
685 W. Montrose Street Clermont, FL 34711 www.ClermontFL.gov
Page 6
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 Scott E. Borror
City Manager Finance Director
685 W. Montrose Street • Clermont, FL 34711 c www.ClermontFL.gov
Page 7
n
Page 8
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, 2022
Elected Officials
Tim Murray
Mayor
Jim Purvis
Council Member
Ebo Entsuah
Council Member
Appointed Officials
Brian Bulthuis
City Manager
Scott Davidoff
Deputy City Manager
Dan Mantzaris
City Attorney
Tracy Ackroyd Howe
City Clerk
Laurie Windham
Communications Director
Lisa Widican
Building Services Director
Curt Henschel
Planning & Development Services Director
Pam Brosonski
Finance Director
Timothy Bates
Mayor Pro- Tem
Michele Pines
Council Member
David Ezell
Fire Chief
Nadine Ohlinger
Human Resources Director
Wayne Fountain
Interim Information Technology Director
Brian Forman
Parks and Recreation Director
Charles Broadway
Police Chief
Stoney Brunson
Public Works Director
Freddy Suarez
Purchasing Director
Page 10
FINANCIAL SECTION
Page 11
n
Page 12
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 Audit of the Financial Statements
Opinions
We have audited the 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 (the "City"), as of and for the year ended September 30, 2022,
and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the
table of contents.
In our opinion, the accompanying financial statements 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 the City, as of
September 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective
budgetary comparison for the General Fund, Infrastructure Special Revenue Fund, and ARPA Special Revenue Fund for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We have conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The City's management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America; and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial
statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a
high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit accordance with GAAS, we
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include examining on a test basis,
evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City's internal control.
Accordingly, no such opinion is expressed.
the trusted partner
Page 13
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgement there are conditions or events, considered in the aggregate, that raise substantial
doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit, significant audit findings, and certain internal control —related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, such
as management's discussion and analysis and pension and other post employment benefits disclosures on page 17 through 26 and
85 through 89 and be presented to supplement the basic financial statements. Such information is the responsibility of management
and, 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic
financial statements. The combining and individual nonmajor fund financial statements and schedules, 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. Such
information is the responsibility of management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The 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 accompanying supplementary information is fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
Other information
Management is responsible for the other information. The other information comprises the introductory section and statistical section
but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover
the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the
financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between
the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on
the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to
describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 1, 2024 on our consideration of the
City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is 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 the effectiveness of 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 the City's internal control over financial reporting and compliance.
Orlando, FL
April 1, 2024
Page 14
MANAGEMENT'S DISCUSSION AND
ANALYSIS
Page 15
n
Page 16
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, 2022. 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, 2022 by $250,306,603 (net position). Of this amount, $55,940,265 (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 $19,458,668 (or 8%) during fiscal year 2022 primarily due to an increase in total
revenues. The most significant factor was the increase in operating grants and contributions, which changed from $2.0 million
to $14.6 million. This was primarily due to the receipt of American Rescue Plan Act (ARPA) funding from the federal
government.
• At September 30, 2022, the City of Clermont's governmental funds reported combined ending fund balances of $49,559,018
an increase of $9,972,764 from the previous fiscal year. Of this amount $17,840,316 (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 $17,840,316, which represents
50% 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.
Page 17
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, Infrastructure Fund and ARPA Fund, which are considered to be major funds. Data from the other seven
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), the Infrastructure Fund (page 36), and the ARPA fund (page 37) to demonstrate
compliance with budgets. Other major and nonmajor funds comparisons can be found beginning on page 100.
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 - 80 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 -
109 of this report.
Page 18
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.
Assets:
Current and other assets
Capital assets
Total assets
Deferred Outflows of Resources:
Deferred outflow of pension and OPEB earnings
Deferred charge of refunding
Total deferred outflows of resources
Liabilities:
Long-term liabilities outstanding
Other liabilities
Total liabilities
Deferred Inflow of Resources:
Deferred inflow of pension and OPEB earnings
Net investment in capital assets
Restricted
Unrestricted
Total net position
Net Position
Governmental Activities
2021.22 2020.21
$ 63,295,511 $55,105,444
84,078,750 79,192,866
147,374,261 134, 298, 310
10,594,352 5,199,860
10,594,352 5,199,860
40,351,634 39,344,826
12,534,561 4,439,101
52,886,195 43,783,927
1,403,154 7,361,151
58,736,145 51,595,557
18, 690, 598 14, 910, 765
26,252,521 21,846,770
$103,679,264 $ 88,353,092
Business -type Activities
2021.22 2020.21
$ 68,008,090 $ 61,898,408
98,166,957 100,421,095
166,175, 047 162, 319, 503
405,698 445,423
645,480 726,167
1,051,178 1,171,590
17,966,773 18, 748, 695
2,581,582 2,175,846
20,548,355 20,924,541
50,531 71,709
86,666,673 88,519,639
30,272,922 25,419,884
29,687,744 28,555,320
$146,627,339 $142,494,843
Total
2021-22 2020-21
$131,303,601 $117,003,852
182, 245, 707 179, 613, 961
313,549,308 296,617,813
11,000,050
5,645,283
645,480
726,167
11,645,530
6,371,450
58,318,407 58,093,521
15,116,143 6,614,947
73,434,550 64,708,468
1,453,685 7,432,860
145,402,818 140,115,196
48,963,520 40,330,649
55,940,265 50,402,090
$ 250,306,603 $ 230,847,935
The City's total net position at September 30, 2022 was $250,306,603.Of the City's total net position $145,402,818 (58.1 %) 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, $48,963,520 (19.6%) represents resources that are subject to external restrictions
on how they may be used. The remaining balance of the City's total net position, $55,940,265 (22.3%) 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 $19,458,668 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 2021-22, including revenues and
expenses, with a comparison to the prior year. For more detail see the Statement of Activities.
Page 19
City of Clermont, Florida
Management's Discussion and Analysis
Revenues:
Program revenues -
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues -
Property Taxes
Business Taxes
Franchise Fees
Utility Taxes
Intergovernmental
Investment income and miscellaneous
Gain on sale of capital assets
Total revenues
Expenses:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Interest on long-term debt
Water
Sewer
Sanitation
Stormwater
Total expenses
Increase (Decrease) in Net Position Before
Transfers
Transfers
Increase in Net Position
Net Position - Beginning
Net Position - Ending
Changes in Net Position
Governmental Activities Business -type Activities
2021.22 2020-21 2021.22 2020.21
$ 10,068,644 $ 8,346,718 $ 23,305,913 $ 22,107,572
14,583,447 2,025,523 - -
23,375 2,205,531 6,312,708 22,093,775
Total
2021.22 2020-21
$ 33,374,557 $ 30,454,290
14,583,447 2,025,523
6,336,083 24,299,306
15,349,735
14,353,854
15,349,735
14,353,854
144,528
143,984
144,528
143,984
3,812,938
3,360,139
3,812,938
3,360,139
4,684,059
4,466,642
4,684,059
4,466,642
12,179,646
9,969,074
12,179,646
9,969,074
290,322
791,253
(471,841)
106,161
(181,519)
897,414
42,372
-
775
40,066
43,147
40,066
61,179,066
45,662,718
29,147,555
44,347,574
90,326,621
90,010,292
5,322,105
5,918,171
-
-
5,322,105
5,918,171
28,925,227
23,712,850
28,925,227
23,712,850
3,772,739
2,763,287
3,772,739
2,763,287
1,927,707
2,264,129
1,927,707
2,264,129
1,337,164
665,094
1,337,164
665,094
4,227,083
4,044,169
4,227,083
4,044,169
635,273
686,929
635,273
686,929
-
-
9,107,744
7,109,563
9,107,744
7,109,563
9,175,803
8,172,055
9,175,803
8,172,055
3,993,702
3,467,370
3,993,702
3,467,370
-
-
2,443,406
1,990,565
2,443,406
1,990,565
46,147,298
40,054,629
24,720,655
20,739,553
70,867,953
60,794,182
15,031,768 5,608,089
294,404 2,346,072
15,326,172 7,954,161
88,353,092 80,398,931
$103,679,264 $ 88,353,092
4,426,900 23,608,021
(294,404) (2,346,072)
4,132,496 21,261,949
142,494,843 121,232,894
$146,627,339 $142,494,843
19,458,668 29,216,110
19,458,668 29,216,110
230,847,935 201,631,825
$ 250,306,603 $ 230,847,935
Governmental Activities
Governmental activities increased the City of Clermont's net position by $15,326,172. The increase in governmental activity net
position is due to revenues increasing at a rate faster than expenses. While revenues increased 34% to $61.2 million, expenses
increased at a 15% rate to $46.1 million.
Page 20
City of Clermont, Florida
Management's Discussion and Analysis
In addition to the ARPA distributions received by the City, revenue 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 8.3% or $284 million in FY22 despite the City's millage rate remaining the same. This led to an increase in
receipts of approximately $1.0 million. In another example, intergovernmental revenues, such as sales tax and state revenue
sharing, increased approximately $2.2 million.
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.
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Expenses and Program Revenues - Governmental Activities
Generalgovefryment Public Tra Culture Physical Interest on long,t debt
safety nsportation/public works & recreation environment and other erm
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 taxE
Capital grants and
contributions, 0.0%
Other taxes, 14.1%
Investment income and
miscellaneous, 0.5%
Operating grants and
contributions, 23.9%
Intergovernmental,
19.9%
harges for services,
16.5%
Page 21
City of Clermont, Florida
Management's Discussion and Analysis
Business -Type Activities
Business -type activities increased the City of Clermont's net position by $4,132,496. This change is primarily due to increased revenue
from services resulting from an increase in residents and customers.
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.
Expenses and Program Revenues - Business Type Activities
$14,000,000
$12, 000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
38
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
Charges for Servic(
77.4%
Capital Grants and
:ontributions, 21.0%
Investment income and
miscellaneous , -1.5%
Operating grants and
contributions, 0.0%
Page 22
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, 2022, the City of Clermont's governmental funds reported combined ending fund balances of $49,559,018 an
increase of $9,972,764 in comparison with the prior year. This increase is primarily due to additional cash balances resulting from
the ARPA distributions received by not yet spent during FY22. Of the governmental funds combined ending fund balances,
$17,840,316 (36%) represents unassigned fund balance, which is available for spending at the City's discretion. An additional
$12,565,518 (assigned fund balance) has been set aside for planned master plan project expenditures. Restricted fund balances
totaling over $18.7 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 ($472,861) 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, 2022, the fund balance in the General
Fund was $20,088,322 an increase of $6,180,164 primarily from an increase in revenues; property taxes, franchise fees, licenses
and permits, and charges for services all surpassed the 2021 amounts. The change in fund balance was more than the anticipated
amount of the original budget by $6,222,578 and $5,061,392 more than the revised budget. Revenues were more than budgeted
by $2,881,759, due to an increase in intergovernmental, which was due to better than anticipated state projections on sales and
gas taxes. Departmental expenditures came in less than anticipated resulting in no use of reserves in 2022. Of the total fund
balance in the General Fund, $17,840,316 (88.8%) 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 50% of total General Fund expenditures, while total fund balance represents 56.6% 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 $17,380 in fiscal year 2022, primarily due to spending of proceeds from the Master Plan Capital Projects Revenue
Note. The most significant projects were a streetscape project and construction of a new public services facility.
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
$1,353,013 in fiscal year 2022 primarily due to an increase of $1.0 million in sales tax collections.
The remainder of the change of $2,456,967 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 $2,004,393 in fiscal year 2022 primarily due to
the collection of impact fees on new development within the City. Other nonmajor governmental funds that realized an increase in
fund balance include the Building Services Fund and the Cemetery Fund
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 23
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, 2022, the City of Clermont's Water Fund reported total net position of
$52,180,249, an increase of $1,483,122 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, 2022, the City of Clermont's Sewer Fund reported total net position of $75,860,817, an increase of $2,518,879 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, 2022, the
City of Clermont's Sanitation Fund reported total net position of $6,702,689, an increase of $3,786 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, 2022, the City of Clermont's Stormwater Fund
reported total net position of $12,014,897, an increase of $21,011 in comparison with the prior year. Following the decrease in the
previous fiscal year, this increase is due to capital contributions and internal transfers to offset capital expenditures.
General Fund Budgetary Highlights
During the year, there was a $1,613,252 increase in appropriations between the original and final amended budget. Significant
components of the increase are as follows:
• $83,643 carryover of unexpended FY21 funds for capital expenditures.
• $92,000 to fund a new collective bargaining agreement with police department personnel.
$180,000 for the establishment of a community garden program.
• $228,590 to offset unexpected contributions to the Group Self Insurance Fund.
• 180,000 to fund a new collective bargaining agreement with fire department personnel.
In addition, General Fund budgeted revenues increased by $1,190,605 between the original and final budget. Significant
components of the increase were related to increases in intergovernmental revenues and interfund transfers related to the
accounting of ARPA funds.
Considering the above noted increases in General Fund budgeted appropriations, actual expenditures were less than budgeted
by $1,870,809.
Page 24
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.
Land
Buildings
Infrastructure
Machinery and Equipment
Intangibles
Construction in Progress
Total
Capital Assets
(net of depreciation)
Governmental Activities
Business -type
Activities
2021-22
2020-21
2021.22
2020.21
$ 25,851,030
$ 25,851,030
$ 1,511,807 $
1,511,807
17,325,719
18,353,736
817,003
835,845
21,994,814
24,062,230
78,308,609
82,856,729
6,217,412
6,750,161
5,231,558
5,333,990
57,548
70,369
1,032,724
193,901
12,632,227
4,105,340
11,265,256
9,688,823
Total
2021-22
$ 27,362,837
18,142,722
100,303,423
11,448,970
1,090,272
23,897,483
2020-21
$ 27,362,837
19,189,581
106,918,959
12,084,151
264,270
13,794,163
$ 84,078,750 $ 79,192,866 $ 98,166,957 $100,421,095 $182,245,707 $179,613,961
The City of Clermont's investment in capital assets for its governmental and business -type activities as of September 30, 2022,
amounts to $182,245,707 (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 $2,631,746. As displayed in the Capital Assets table the primary categories of buildings,
infrastructure, and machinery and equipment all realized a decrease in net depreciation totals. This results from accumulated
depreciation and/or disposals exceeding total additions for the year. However, the construction in progress category of capital
assets increased 73.2% due to a number of ongoing projects within the City. These include a downtown streetscape project and
the construction of a new public services facility.
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 7 of this report.
Outstanding Debt
Governmental Activities
Business -type Activities
Total
2021.22
2020-21
2021-22
2020-21
2021-22
2020-21
Revenue bonds payable
$ -
$ -
$ 8,900,000
$ 9,779,000
$ 8,900,000
$ 9,779,000
Notes payable
24,766,095
26,931,061
4,874,692
5,252,560
29,640,787
32,183,621
Financed purchases
576,510
666,248
-
-
576,510
666,248
Total
$ 25,342,605
$ 27,597,309
$ 13,774,692
$ 15,031,560
$ 39,117,297
$ 42,628,869
As of September 30, 2022, total outstanding debt was $39,117,297, which includes both revenue bonds payable and notes
payable. The outstanding debt amount decreased $3,511,572 over the previous year.
Page 25
City of Clermont, Florida
Management's Discussion and Analysis
Next Year's Budgets and Rates
The fiscal year 2023 budget was approved with the use of $10,998 in reserves to balance the General Fund budget. Following a
period of seven years of maintaining the same property tax millage rate, the City Council authorized a millage rate increase to a
rate of 5.0600. This rate remains one of the lowest of comparable cities in the region. Property values continued to increase in
fiscal year 2023 in the amount of 13.5%.
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 2023 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 26
BASIC FINANCIAL STATEMENTS
Page 27
n
Page 28
City of Clermont, Florida
Statement of Net Position
September 30, 2022
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
$ 38,207,797
$ 24,406,112
$ 62,613,909
19,036,119
20,964,107
40,000,226
1,062,656
1,590,618
2,653,274
35,419
29,477
64,896
989,254
-
989,254
(155,814)
155,814
-
1,066,244
201,882
1,268,126
-
3,530,144
3,530,144
3,027,324
17,076,302
20,103,626
26,512
53,634
80,146
38,483,257
12,777,063
51,260,320
45,595,493
85,389,894
130,985,387
147,374,261
166,175,047
313,549,308
9,257,269
-
9,257,269
1,337,083
405,698
1,742,781
-
645,480
645,480
10,594, 352
1,051,178
11,645, 530
5,044,881
2,581,582
7,626,463
7,489,680
-
7,489,680
2,479,831
1,338,432
3,818,263
37,871,803
16,628,341
54,500,144
52,886,195
20,548,355
73,434,550
1,243,182
-
1,243,182
159,972
50,531
210,503
1,403,154
50,531
1,453,685
58,736,145
86,666,673
145,402,818
-
30,272,922
30,272,922
506,320
-
506,320
3,671,450
3,671,450
4,638,601
4,638,601
4,037,993
4,037,993
1,862,888
1,862,888
2,400,490
2,400,490
24,742
24,742
1,548,114
-
1,548,114
26,252,521
29,687,744
55,940,265
$ 103,679,264
$ 146,627,339
$ 250,306,603
The accompanying Notes to Financial Statements are an integral part of this statement. Page 29
City of Clermont, Florida
Statement of Activities
Year Ended September 30, 2022
Functions/Programs:
Governmental Activities:
General government
Public safety
Physical environment
Transportation/public works
Economic environment
Culture and recreation
Interest on long-term debt
Total governmental activities
Business -type Activities
Water
Sewer
Sanitation
Stormwater
Total business -type activities
Total primary government
Expenses
$ 5,322,105
28,925,227
3,772,739
1,927,707
1,337,164
4,227,083
635,273
46,147,298
Charges for
Services
$ 4,884,073
2,211,377
2,973,194
10,068,644
Program Revenue
Operating Grants Capital Grants and
and Contributions Contributions
$ 12,016,535 $ - $
1,917,628
4,381
573,885
71,018
9,107,744 8,825,673
9,175,803 8,581,030
3,993,702 4,019,672
2,443,406 1,879,538
24,720,655 23,305,913
$ 70,867,953 $ 33,374,557
General Revenues:
Property taxes
Business taxes
Franchise fees
Utility taxes
Intergovernmental - unrestricted
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net Position - beginning
Net Position - ending
14,583,447
14,583,447 $
23,375
23,375
2,200,050
4,112,658
6,312,708
6,336,083
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental Business -type
Activities Activities Total
11,578,503
(24,796,222)
(3,768,358)
(1,353,822)
(1,337,164)
(1,159,496)
(635,273)
(21,471,832)
(21,471,832)
15,349,735
144,528
3,812,938
4,684,059
12,179,646
(142,915)
433,237
42,372
294,404
36,798,004
15,326,172
88,353,092
103,679,264
1,917,979
3,517,885
25,970
(563,868)
4,897,966
4,897,966
(471,841)
775
(294,404)
(765,470)
4,132,496
142,494,843
$ 146,627,339
11,578,503
(24,796,222)
(3,768,358)
(1,353,822)
(1,337,164)
(1,159,496)
(635,273)
(21,471,832)
1,917,979
3,517,885
25,970
(563,868)
4,897,966
(16,573,866)
15,349,735
144,528
3,812,938
4,684,059
12,179,646
(614,756)
433,237
43,147
36,032,534
19,458,668
230,847,935
250,306,603
The accompanying Notes to Financial Statements are an integral part of this statement. Page 30
City of Clermont, Florida
Balance Sheet
Governmental Funds
September 30, 2022
Assets:
Cash and cash equivalents
Investments
Receivables, net
Inventories, at cost
Due from other governments
Due from other funds
Prepaid costs
Restricted Investments
Total assets
Liabilities:
Accounts payable
Due to other funds
Accrued liabilities
Deposits
Unearned revenue
Total liabilities
Deferred Inflows of Resources:
Unavailable revenue - liens, forfeitures and rents
Total deferred inflows of resources
Fund Balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
Infrastructure
Capital
Special
General
Projects
Revenue
$ 8,197,002 $
9,628,341
$ 3,005,173 $
11,794,273
-
754,989
1,076,886
1,075
35,419
-
655,165
334,089
427,167
-
628,786
-
3,027,324
-
$ 22,185,912 $
12,655,665
$ 4,724,112 $
Other
Total
ARPA Special Governmental
Governmental
Revenue Fund Funds
Funds
7,339,540 $ 9,054,184
$ 37,224,240
- 6,071,015
18,620,277
6,270
1,084,231
-
35,419
989,254
10,275
1,066,228
-
3,027,324
7,339,540 $ 15,141,744 $ 62,046,973
$ 965,816 $ 1,457,813 $ 686,119 $ $ 198,946 $ 3,308,694
287,127 - - - 287,127
606,650 24,405 631,055
- 683,542 683,542
147,957 7,339,540 - 7,487,497
2,007,550 1,457,813 686,119 7,339,540 906,893 12,397,915
90,040 90,040
90,040 90,040
462,586 - 10,275 472,861
417,754 - 4,037,993 14,224,576 18,680,323
1,367,666 11,197,852 - - 12,565,518
17,840,316 - 17,840,316
20,088,322 11,197,852 4,037,993 - 14,234,851 49,559,018
resources, and fund balances $ 22,185,912 $ 12,655,665 $ 4,724,112 $ 7,339,540 $ 15,141,744
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and are not reported in the funds. 84,078,750
Accrued interest payable is not due in the current period and therefore is not reported in the funds. (216,345)
Other long-term assets are not available to pay for current period expenditures and, therefore are deferred in the funds. 90,040
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. 9,191,198
Net pension assets are not current financial resources and therefore are not reported in the funds (1,704,367)
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. 1,328,237
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. (38,647,267)
Net Position of Governmental Activities in the Statement of Net Position. $ 103,679,264
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 31
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2022
Revenues:
Taxes
Franchise fees
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Impact fees/special assessments
Investment earnings (loss)
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:
General government
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
ARPA
Other
Total
Capital
Special
Special
Governmental
Governmental
General
Projects
Revenue
Revenue
Funds
Funds
$ 19,675,976 $
$
$
$ 502,346
$ 20,178,322
3,812,938
-
3,812,938
619,135
2,171,633
2,790,768
9,432,793
5,337,140
12,016,535
-
26,786,468
2,937,388
-
-
275,331
3,212,719
185,958
-
185,958
-
3,268,964
3,268,964
(159,498)
70,912
(7,628)
(42,078)
(138,292)
1,047,351
-
-
-
4,270
1,051,621
37,552,041
70,912
5,329,512
12,016,535
6,180,466
61,149,466
4,694,423
-
156,683
208,625
-
5,059,731
23,608,175
549,125
226,486
2,242,482
26,626,268
2,418,495
168,444
125,490
120,025
2,832,454
1,387,393
547,998
22,397
-
1,957,788
119,624
-
706
497,359
617,689
3,279,499
230,862
21,722
306,182
3,838,265
-
89,738
-
2,164,966
2,254,704
13,033
641,573
654,606
4,004,785 4,004,785
4,395,065 4,395,065
35,507,609
8,399,850
1,755,883
605,426
5,972,587
52,241,355
2,044,432
(8,328,938)
3,573,629
11,411,109
207,879
8,908,111
12,490,693
8,311,558
(8,568,618)
-
(2,220,616) (11,411,109)
213,657
-
4,135,732
8,311,558
(2,220,616) (11,411,109)
6,180,164
(17,380)
1,353,013
13,908,158
11,215,232
2,684,980
$ 20,088,322
$ 11,197,852 $
4,037,993 $
2,833,464
23,635,715
(584,376)
(22,784,719)
-
213,657
2,249,088
1,064,653
2,456,967
9,972,764
11,777,884
39,586,254
$ 14,234,851
$ 49,559,018
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 32
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, 2022
Net Change in Fund Balances - total governmental funds: $ 9,972,764
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. 6,022,888
The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-
ins and disposals) is to decrease net position. (171,285)
Net transfers of capital assets from proprietary funds (965,719)
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. (8,149)
Cash pension contributions reported in the funds were more than the calculated pension
expense on the statement of activities, and therefore increased net position. (842,451)
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. 2,254,704
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. (1,588,531)
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. 651,951
Change in Net Position of Governmental Activities $ 15,326,172
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 33
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year ended September 30, 2022
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original
Final
Revenues:
Taxes
$ 19,602,872 $
19,457,872
$ 19,675,976 $
218,104
Franchise fees
3,368,000
3,368,000
3,812,938
444,938
Licenses and permits
297,000
495,000
619,135
124,135
Intergovernmental revenues
6,722,106
7,573,386
9,432,793
1,859,407
Charges for services
2,542,298
2,782,963
2,937,388
154,425
Fines and forfeitures
112,500
122,500
185,958
63,458
Investment earnings (loss)
92,000
52,000
(159,498)
(211,498)
Miscellaneous
742,901
818,561
1,047,351
228,790
Total revenues
33,479,677
34,670,282
37,552,041
2,881,759
Expenditures:
Current:
General government:
City council
44,789
46,220
46,285
(65)
City clerk
398,620
411,200
392,707
18,493
City manager
787,029
793,029
642,730
150,299
Finance
1,033,005
1,073,219
835,874
237,345
Legal services
147,300
147,300
143,525
3,775
Planning & zoning
710,037
805,123
757,477
47,646
Information technology
940,775
995,493
880,456
115,037
Human resources
499,255
500,227
359,748
140,479
Purchasing
302,008
374,241
349,677
24,564
Other general government
489,742
257,527
285,944
(28,417)
5,352,560
5,403,579
4,694,423
709,156
Public safety:
Law enforcement
11,243,461
11,694,856
11,587,628
107,228
Fire control
11,727,471
12,444,473
12,020,547
423,926
22,970,932
24,139,329
23,608,175
531,154
Physical environment
2,311,519
2,352,561
2,418,495
(65,934)
Transportation
1,530,869
1,546,112
1,387,393
158,719
Economic environment
162,768
162,768
119,624
43,144
Culture and recreation
3,436,518
3,774,069
3,279,499
494,570
Interest and fiscal charges
-
-
-
-
Total expenditures
35,765,166
37,378,418
35,507,609
1,870,809
Excess (deficiency) of revenues over
expenditures
(2,285,489)
(2,708,136)
2,044,432
4,752,568
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 34
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year ended September 30, 2022
Other Financing Sources (Uses):
Transfers In 2,456,542 12,456,542 12,490,693 34,151
Transfers Out (218,467) (8,728,549) (8,568,618) 159,931
Sale of General Capital Assets 5,000 98,915 213,657 114,742
Total other financing sources (uses)
2,243,075
3,826,908
4,135,732 308,824
Net Change in Fund Balance
(42,414)
1,118,772
6,180,164 5,061,392
Fund Balance - beginning
13,908,158
13,908,158
13,908,158 -
Fund Balance - ending $
13,865,744 $
15,026,930 $
20,088,322 $ 5,061,392
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 35
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Infrastructure Special Revenue Fund
Year ended September 30, 2022
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Intergovernmental revenues
$ 3,951,038 $
4,400,000
$ 5,337,140 $
937,140
Investment earnings (loss)
5,000
2,000
(7,628)
(9,628)
Total revenues
3,956,038
4,402,000
5,329,512
927,512
Expenditures:
Current:
General government
186,468
445,551
156,683
288,868
Public safety:
Police
232,000
695,079
357,171
337,908
Fire control
952,829
975,906
191,954
783,952
1,184,829
1,670,985
549,125
1,121,860
Physical Environment
110,000
188,703
168,444
20,259
Transportation
380,000
604,254
547,998
56,256
Culture and recreation
268,469
1,256,494
230,862
1,025,632
Debt Service:
Principal
89,738
89,738
89,738
-
Interest
13,033
13,033
13,033
102,771
102,771
102,771
-
Total expenditures
2,232,537
4,268,758
1,755,883
2,512,875
Excess (deficiency) of revenues over expenditures
1,723,501
133,242
3,573,629
3,440,387
Other Financing Uses:
Transfers out
(2,030,614)
(2,220,614)
(2,220,616)
(2)
Total other financing uses
(2,030,614)
(2,220,614)
(2,220,616)
(2)
Net Change in Fund Balances
(307,113)
(2,087,372)
1,353,013
3,440,385
Fund Balances - beginning
2,684,980
2,684,980
2,684,980
-
Fund Balances - ending
$ 2,377,867 $
597,608
$ 4,037,993 $
3,440,385
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 36
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
ARPA Special Revenue Fund
Year ended September 30, 2022
Revenues:
Intergovernmental
Total revenues
Expenditures:
Current:
General government
Public safety:
Police
Fire control
Physical Environment
Transportation
Economic Environment
Culture and Recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Uses:
Transfers out
Total other financing sources
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Budgeted Amounts Actual Amounts
Original Final
$ 8,000,000 $ 19,356,075 $ 12,016,535 $
8,000,000 19, 356, 075 12, 016, 535
312,340
172,408
80,544
252,952
251,441
150,627
17,699
985,059
7,014,941
7,014,941
7,014,941 $
335,700
268,888
210,564
479,452
362,926
165,257
710
39,429
1,383,474
17,972,601
(11,411,113)
(11,411,113)
6,561,488
6,561,488 $
208,625
96,479
130,007
226,486
125,490
22,397
706
21,722
605,426
11,411,109
Variance with
Final Budget -
Positive
(Negative)
(7,339,540)
(7,339,540)
127,075
172,409
80,557
252,966
237,436
142,860
4
17,707
778,048
(6,561,492)
4
4
(6,561,488)
(6,561,488)
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 37
City of Clermont, Florida
Statement of Net Position
Proprietary Funds
September 30, 2022
Assets:
Current assets:
Cash and cash equivalents
Investments
Restricted cash and cash equivalents
Accounts receivable, net
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
$ 8,331,706
$ 13,829,326
$ 2,034,479
$ 210,601
$ 24,406,112 $
983,557
11,116,721
7,359,339
2,488,047
-
20,964,107
415,842
1,268,067
1,440,946
192,970
628,161
3,530,144
-
446,280
786,124
212,157
146,057
1,590,618
4,378
29,477
-
-
-
29,477
-
95,661
65,832
25,132
15,257
201,882
16
21,287,912
23,481,567
4,952,785
1,000,076
50,722,340
1,403,793
2,695,526
13,380,009
1,000,767
-
17,076,302
-
-
275,000
287,127
562,127
-
20,052
29,993
3,589
-
53,634
559
51,422,945
81,254,215
5,564,456
21,883,538
160,125,154
-
2,959,821
6,168,543
1,530,713
606,179
11,265,256
(20,799,229)
(41,628,545)
(3,838,515)
(6,957,164)
(73,223,453)
33,583,537
45,794,213
3,256,654
15,532,553
98,166,957
-
36,299,115
59,479,215
4,548,137
15,532,553
115,859,020
559
57,587,027
82,960,782
9,500,922
16,532,629
166,581,360
1,404,352
230,382
415,098
-
-
645,480
-
144,642
107,760
109,834
43,462
405,698
375,024
522,858
109,834
43,462
1,051,178
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 38
Liabilities:
Current liabilities:
Accounts payable
438,415
225,613
702,179
67,868
1,434,075
205,245
Salaries payable
38,758
43,304
41,474
17,501
141,037
-
Accrued interest payable
25,419
45,188
10,062
32,673
113,342
Due to other funds
-
-
-
275,000
275,000
Compensated absences
17,608
20,291
9,844
2,691
50,434
Customer deposits payable
457,547
-
-
-
457,547
-
Unearned revenue
141,254
293,239
428
660
435,581
2,183
Revenue bonds and notes payable -current
324,000
576,000
91,354
296,644
1,287,998
-
Total current liabilities
1,443,001
1,203,635
855,341
693,037
4,195,014
207,428
Noncurrent liabilities:
Compensated absences
158,469
182,624
88,599
24,225
453,917
-
Other post employment benefits
1,279,373
1,106,221
893,028
409,108
3,687,730
Notes payable
-
-
1,056,385
3,430,309
4,486,694
Revenue bonds payable
2,880,000
5,120,000
-
-
8,000,000
Total noncurrent liabilities
4,317,842
6,408,845
2,038,012
3,863,642
16,628,341
-
Totalliabilities
5,760,843
7,612,480
2,893,353
4,556,679
20,823,355
207,428
Deferred Inflows of Resources:
Deferred inflows related to OPEB
20,959
10,343
14,714
4,515
50,531
Total deferred inflows of resources
20,959
10,343
14,714
4,515
50,531
-
Net Position:
Net investment in capital assets
30,609,919
40,513,311
3,109,682
12,433,761
86,666,673
Restricted for capital improvements
7,912,314
22,360,608
-
-
30,272,922
-
Unrestricted
13,658,016
12,986,898
3,593,007
(418,864)
29,819,057
1,196,924
Total net position
$ 52,180,249
$ 75,860,817 $
6,702,689
$ 12,014,897
146,758,652 $
1,196,924
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. (131,313)
Total Net Position per Government -Wide Financial Statements $ 146,627,339
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 39
n
Page 40
City of Clermont, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Year Ended September 30, 2022
Governmental
Business -type Activities -Enterprise
Funds
Activities -
Internal Service
Water
Sewer
Sanitation
Stormwater
Total
Fund
Operating Revenues:
Charges for services $
8,450,799 $
8,577,903 $
4,019,607
$ 1,879,538 $
22,927,847
$ 6,463,076
Miscellaneous
374,874
3,127
65
-
378,066
43,123
Total operating revenues
8,825,673
8,581,030
4,019,672
1,879,538
23,305,913
6,506,199
Operating Expenses:
Personnel services
2,136,802
2,245,759
1,653,670
772,386
6,808,617
73,203
Utilities
696,217
1,034,435
1,907
12,719
1,745,278
-
Dump fees
572
309,052
589,566
17,914
917,104
Administrative services
529,390
510,826
257,360
162,945
1,460,521
Repairs and maintenance
2,346,020
180,259
232,680
48,657
2,807,616
Depreciation and amortization
2,295,584
3,911,945
400,969
1,172,237
7,780,735
-
Professional services
326,565
221,574
195,159
48,132
791,430
58,192
Insurance claims and expenses
163,426
205,849
57,060
50,154
476,489
6,021,659
Other supplies and expenses
537,978
401,322
588,547
84,853
1,612,700
-
Total operating expenses
9,032,554
9,021,021
3,976,918
2,369,997
24,400,490
6,153,054
Operating income (loss)
(206,881)
(439,991)
42,754
(490,459)
(1,094,577)
353,145
Nonoperating Revenues (Expenses):
Investment income (loss)
(185,966)
(280,319)
(9,157)
3,601
(471,841)
(4,623)
Interest expense
(106,309)
(189,685)
(30,586)
(99,283)
(425,863)
Gain (loss) on disposal of capital assets
775
775
Total nonoperating revenue (expenses)
(292,275)
(470,004)
(38,968)
(95,682)
(896,929)
(4,623)
Income (loss) before contributions and transfers
(499,156)
(909,995)
3,786
(586,141)
(1,991,506)
348,522
Capital contributions
2,730,663
4,351,032
-
196,732
7,278,427
-
Transfers in
455,622
364,528
410,420
1,230,570
409,127
Transfers out
(1,204,007)
(1,286,686)
-
-
(2,490,693)
-
Change in net position
1,483,122
2,518,879
3,786
21,011
4,026,798
757,649
Total Net Position - Beginning
50,697,127
73,341,938
6,698,903
11,993,886
439,275
Total Net Position - Ending $
52,180,249 $
75,860,817 $
6,702,689
$ 12,014,897
$ 1,196,924
Change in Net Position, per above
4,026,798
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.
105,698
Change in Business -Type Activities in Net Position per Government -Wide Financial
Statements
$
4,132,496
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 41
City of Clermont, Florida
Statement of Cash Flows
Proprietary Funds
Year Ended September 30, 2022
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:
Transfers in
Transfers out
Net cash provided (used) by non -capital financing.
activities
Cash Flows from Capital and Related Financing Activities:
Acquisition of capital assets
Sale of capital assets
Interest paid on long-term debt
Principal paid on debt
Capital grants
Fees and assessments received
Net cash provided (used) by capital and related financing
activities
Governmental
Activities -
Business -Type Activities -Enterprise Funds
Internal Service
Water
Sewer
Sanitation
Stormwater
Total
Fund
$ 8,870,634 $
8,307,829 $
4,005,455 $
1,852,389 $
23,036,307
$ -
-
-
-
-
-
6,504,779
(4,848,356)
(2,974,111)
(1,347,392)
(522,928)
(9,692,787)
(6,204,639)
(2,048,224)
(2,149,211)
(1,558,439)
(724,476)
(6,480,350)
(77,027)
1,974,054
3,184,507
1,099,624
604,985
6,863,170
223,113
455,622
364,528
-
410,420
1,230,570
409,127
(1,204,007)
(1,286,686)
-
(2,490,693)
-
(748,385)
(922,158)
410,420
(1,260,123)
409,127
(1,059,114)
(1,284,533)
(1,662,256)
(554,977)
(4,560,880)
-
775
775
(80,021)
(142,259)
(31,371)
(101,815)
(355,466)
(316,440)
(562,560)
(88,971)
(288,897)
(1,256,868)
-
-
428
117,418
117,846
2,641,538
4,402,513
-
-
7,044,051
1,185,963
2,413,161
(1,781,395)
(828,271)
989,458
The accompanying Notes to Financial Statements are an integral part of these statements.
Page 42
Cash Flows from Investing Activities:
Sale (purchase) of investments
(1,717,110)
(2,589,309)
962,133
(3,344,286)
200,417
Investment income (loss)
97,430
143,569
(62,479)
3,601
182,121
(13,129)
Net cash provided by investing activities
(1,619,680)
(2,445,740)
899,654
3,601
(3,162,165)
187,288
Net Increase (Decrease) in Cash and Cash Equivalents
791,952
2,229,770
217,883
190,735
3,430,340
819,528
Cash and Cash Equivalents - beginning
8,807,821
13,040,502
2,009,566
648,027
24,505,916
164,029
Cash and Cash Equivalents - end
$
9,599,773
$
15,270,272
$
2,227,449
$
838,762
$
27,936,256
$
983,557
Classified As:
Cash and cash equivalents
$
8,331,706
$
13,829,326
$
2,034,479
$
210,601
$
24,406,112
$
983,557
Restricted cash and cash equivalents
1,268,067
1,440,946
192,970
628,161
3,530,144
-
Total
$
9,599,773
$
15,270,272
$
2,227,449
$
838,762
$
27,936,256
$
983,557
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities
Operating income (loss)
$
(206,881)
$
(439,991)
$
42,754
$
(490,459)
$
(1,094,577)
$
353,145
Adjustments Not Affecting Cash:
Depreciation and amortization
2,295,584
3,911,945
400,969
1,172,237
7,780,735
-
Change in Assets and Liabilities:
Decrease (Increase) in accounts receivable
22,356
(273,201)
(14,217)
(27,149)
(292,211)
(1,448)
Increase in unearned revenue
-
-
28
Increase in customer deposits
22,605
-
-
22,605
-
Decrease in prepaid costs
2,166
2,902
(2,826)
2,134
4,376
4,585
Decrease (Increase) in inventory
(12,475)
-
-
-
(12,475)
-
Increase (Decrease) in accounts payable
(237,879)
(113,696)
577,713
(99,688)
126,450
(129,373)
Increase in OPEB
133,763
150,046
111,275
59,320
454,404
Increase in accrued liabilities
(45,185)
(53,498)
(16,044)
(11,410)
(126,137)
(3,824)
Total adjustments
2,180,935
3,624,498
1,056,870
1,095,444
7,957,747
(130,032)
Net Cash Provided (Used) by Operating Activities
$
1,974,054
$
3,184,507
$
1,099,624
$
604,985
$
6,863,170
$
223,113
Noncash Investing, Capital, and Financing Activities:
Contributed assets
$
530,612
$
238,374
$
-
$
196,731
$
965,717
$
-
Increase (Decrease) in Fair Value of Investments
$
(290,668)
$
(434,765)
$
52,020
$
-
$
(673,413)
$
The accompanying Notes to Financial Statements are an integral part of these statements.
Page 43
City of Clermont, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2022
Assets:
Cash and cash equivalents
Investments at fair value:
U.S. Government & other debt securities
Equities
Real estate
Total investments
Accounts receivable
Total assets
Liabilities:
Refunds payable and other
Pending trades payable
Total liabilities
Net Position Restricted for Pensions
Total Employee
Pension Funds
1,829,482
16,837,628
32,538,638
2,114,028
51,490,294
5,582
53,325,358
6,865
20,687
27,552
53,297,806
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 44
City of Clermont, Florida
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended September 30, 2022
Total Employee
Pension Funds
Additions:
Contributions:
Employer
$ 2,034,260
Plan members
694,846
State
1,355,821
Total contributions
4,084,927
Investment earnings
Net increase (decrease) in fair value of investments (12,388,267)
Interest and dividends 1,952,450
Less: Investment expense (46,948)
Total net investment earnings (10,482,765)
Total additions (6,397,838)
Deductions:
Benefits/distributions
1,632,507
Administrative
178,284
Total deductions
1,810,791
Change in Net Position
(8,208,629)
Net Position - beginning
61,506,435
Net Position - ending
$ 53,297,806
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 45
n
Page 46
NOTES TO FINANCIAL STATEMENTS
Page 47
n
Page 48
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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.
Page 49
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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.
ARPA Special Revenue Fund accounts for the proceeds of the City's American Rescue Plan Act ("ARPA") funding.
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.
Page 50
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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".
Page 51
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Advances between funds, as reported in the fund financial statements, are offset by a non -spendable fund balance in applicable
governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to
the City. City property tax revenues are recognized when levied to the extent that they result in current receivables.
All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of
each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December,
2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes
become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year,
certificates are sold for all delinquent taxes on real property.
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 52
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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 53
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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 2022, the City implemented GASB Statement No. 87, Leases. The statement requires the City to recognize certain lease
assets and liabilities for leases that were previously classified as operating leases and recognized as inflows of resources or outflows
of resources based on the contract's payment arrangement. Under this statement, a lessor is required to recognize a lease receivable
and a deferred inflow of resources, in doing so enhancing the relevance and consistency of information about the City's leasing
activities. As a result of implementation, the City reclassified capital leases to financed purchases. There was no change to beginning
fund balances or net position.
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
10,440,224
(4,417,336)
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ 6,022,888
Page 54
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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 $ 2,254,704
Net adjustment to de crease net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ 2,254,704
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 $ (123,680)
Other Post Employment Benefits (1,484,184)
Accrued Interest Payable 19,333
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ (1,588,531)
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 55
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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 56
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Investments made by the City of Clermont at September 30, 2022 are summarized below. Defined benefit pension plan investments,
other than $32,538,638 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
$ 966,882
AA+
1.10 years
Federal Agency Mortgage -Backed Securities
388,825
AA+
8.59 years
Federal Agency Commercial Mortgage -Backed Securities
468,465
AA+
1.85 years
Federal Agency Collateralized Mortgage Obligation
241,553
AA+
3.03 years
US Treasury Notes
8,453,991
AA+
2.06 years
Supra -National Agency Bond/Note
1,142,458
AAA
1.6 years
Corporate Note
4,966,695
BBB+/AA
1.97 years
Asset Backed Security
3,426,275
AAA/NR
3.5 years
Municipal Bonds
907,954
AAA
.96 years
FL Palm
39,140,754
AAAm
80 days
Pension Fixed Income Securities
16,837,628
various
2 - 8 years
$ 76,941,480
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, 2022, 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, 2022, 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 57
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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, 2022:
Investments Valued by Fair Value Level
Federal Agency Bond $
Federal Agency Collateralized 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
Significant Other
Identical Assets
Observable Inputs
(Level1)
(Level2)
966,882
$ -
$ 966,882
241,553
241,553
468,465
468,465
388,825
-
388,825
8,453,991
8,453,991
-
1,142,458
-
1,142,458
4,966,695
4,966,695
3,426,275
3,426,275
907,954
-
907,954
16,837,628
16,837,628
-
32,538,638
32,538,638
-
70,339,364
$ 57,830,257
$ 12,509,107
Page 58
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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
$3,036,250
$117,436 $ 906,925
$ (2,983,725)
$1,076,886
Infrastructure Special Revenue Fund
-
- 1,075
-
1,075
Water Fund
434,101
- 77,186
(44,955)
466,332
Sewer Fund
935,065
- 29,993
(148,941)
816,117
Sanitation Fund
263,862
- 4,330
(52,446)
215,746
Stormwater Fund
171,125
- 494
(25,562)
146,057
Nonmajor Governmental Funds
-
- 6,270
-
6,270
Internal Service Fund
- 4,937
-
4,937
$4,840,403
$117,436 $1,031,210
$ (3,255,629)
$2,733,420
NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2022 was as follows:
Beginning Balance Increases Decreases Ending Balance
Governmental Activities:
Capital Assets, not being depreciated:
Land $ 25,851,030 $ - $ - $ 25,851,030
Construction in progress 4,105,340 8,807,897 (281,010) 12,632,227
Total capital assets, not being depreciated 29,956,370 8,807,897 (281,010) 38,483,257
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 $
31,625,370
-
31,625,370
39,191,548
546,783
(999,823)
38,738,508
18,366,050
1,362,059
(423,664)
19,304,445
522,068
4,495
526,563
89,705,036
1,913,337
(1,423,487)
90,194,886
(13,271,634)
(1,028,017)
-
(14,299,651)
(15,129,318)
(1,637,389)
23,013
(16,743,694)
(11,615,889)
(1,734,614)
263,470
(13,087,033)
(451,699)
(17,316)
-
(469,015)
(40,468,540)
(4,417,336)
286,483
(44,599,393)
49,236,496
(2,503,999)
(1,137,004)
45,595,493
79,192,866
$ 6,303,898
$(1,418,014) $
84,078,750
Page 59
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
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 9,688,823 2,896,857 (1,320,424) 11,265,256
Total capital assets, not being depreciated 11,200,630 2,896,857 (1,320,424) 12,777,063
Capital Assets, being depreciated:
Buildings
989,780
18,338
1,008,118
Improvements/infrastructure
141,347,219
2,055,041
(8,500)
143,393,760
Machinery and equipment
11,903,766
1,016,231
(9,982)
12,910,015
Intangibles
403,266
898,188
1,301,454
Total capital assets being depreciated
154,644,031
3,987,798
(18,482)
158,613,347
Less Accumulated Depreciation for:
Buildings
(153,935)
(37,180)
(191,115)
Improvements/infrastructure
(58,490,490)
(6,594,661)
(65,085,151)
Machinery and equipment
(6,569,776)
(1,108,681)
(7,678,457)
Intangibles
(209,365)
(59,365)
(268,730)
Total accumulated depreciation
(65,423,566)
(7,799,887)
(73,223,453)
Total capital assets being depreciated, net
89,220,465
(3,812,089)
(18,482)
85,389,894
Business -type activities capital assets, net
$100,421,095
$ (915,232)
$(1,338,906) $
98,166,957
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:
General government
$ 244,038
Public safety
1,672,197
Physical env ironment/transportation
1,255,877
Economic environment
697,296
Culture and recreation
547,928
Total Depreciation Expense - governmental activities $ 4,417,336
Business -type Activities
Water
$ 2,295,584
Sewer
3,911,945
Sanitation
400,969
Stormwater
1,172,237
Total Depreciation Expense - business -type activities $ 7,780,735
Depreciation expense for business type activities does not equal increases in accumulated depreciation due to depreciation of
$19,152 on transfers in from governmental activities.
Page 60
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 7 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 $9,885,892. For the fiscal
year, principal and interest paid on this series was $1,101,280 and total pledged revenue was $5,094,372.
The original amount of revenue bonds issued in prior years is described below. Revenue bonds outstanding at year end are as
follows:
Business -Type Activities
Water and Sewer Revenue
Refunding Bonds,
Series 2017
Balance
Interest Rates Original September 30,
and Dates Maturity Amount 2022
2.38% 12/1/2018
to
(6/1 & 12/1) 12/1/2030 $ 10,817,000 $ 8,900,000
$ 8,900,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending September 30,
2023
2024
2025
2026
2027
2028-2031
Total
Business - Type Activities
Principal
Interest
900,000 $
201,110
920,000
179,452
943,000
157,283
965,000
134,578
986,000
111,360
4,186,000
202,109
8,900,000 $ 985,892
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 $3,334,661. For the fiscal year, principal and interest paid on
this series was $476,732 and total pledged revenue was $6,098,926. 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 $3,764,168. For the fiscal year, principal and interest paid on this
series was $418,648 and total pledged revenue was $5,337,140. 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.
Page 61
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 7 LONG-TERM DEBT (CONTINUED)
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 $26,604,586. For the fiscal year, principal and interest
paid on this series was $2,422,212. 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.
Revenue notes outstanding at year end are as follows:
Interest Rates
Governmental Activities
and Dates
Maturity
Public Improvement Refunding
2.03%
12/1/2016
Revenue Note, Series 2016
(6/1 & 12/1)
to
12/1 /2028
Infrastructure Sales Surtax
2.12%
12/1/2016
Revenue Note, Series 2016
(6/1 & 12/1)
to
12/1 /2030
Master Plan Capital Projects
2.63%
12/1/2018
Revenue Note, Series 2017
(6/1 & 12/1)
to
12/1 /2032
Business -Type Activities
Master Plan Capital Projects 2.63% 12/1/2018
Revenue Note, Series 2017 (6/1 & 12/1) to
12/1 /2032
Annual debt service requirements to maturity for revenue notes are as follows:
Year Ending September 30,
2023
2024
2025
2026
2027
2028-2033
2033
Total
Governmental Activities
Principal
Interest
$ 2,218,409 $
588,188
2,272,175
533,471
2,327,849
477,405
2,383,858
419,962
2,442,577
361,103
11,240,173
919,418
1,881,054
24,735
$ 24,766,095 $ 3,324,282
Original
Amount
$ 5,331,196
$ 5,300,000
$ 23,670,559
Balance
September 30,
2022
3,108,716
3,427,071
18,230,308
$ 24,766,095
$ 6,329,441 $ 4,874,692
Business -Type Activities
Principal
Interest
$ 387,995 $
123,103
398,122
112,765
408,671
102,156
419,220
91,269
430,402
80,097
2,327,336
222,342
502,946
6,614
$ 4,874,692 $ 738,346
Page 62
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 7 LONG-TERM DEBT (CONTINUED)
Financed Purchases
The City has entered into an agreement for financing the acquisition of communications equipment. Payments are due annually. The
loan period is for 10 years with an interest rate of 3.3%.
Annual debt service requirements to maturity for financed purchases are as follows:
Year Ending September 30
2023
2024
2025
2026
2027
2028
Governmental Activities
Principal
Interest
$ 91,492 $
11,277
93,282
9,487
95,107
7,662
96,967
5,802
98,864
3,905
100,798
1,970
$ 576,510 $ 40,103
Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2022 was as follows:
Beginning
Balance Additions Deductions
Governmental Activities
Public improvement revenue notes
Infrastructure revenue notes
Capital Projects revenue notes
Financed purchases
Other post employment benefits
Net pension liability
Compensated absences
Governmental activity long-term
liabilities
Business -type Activities
Bonds payable -
Revenue bonds
Capital Projects revenue notes
Other post employment benefits
Compensated absences
Business -type activity long-term
liabilities
Ending Due Within
Balance One Year
$ 3,518,185
$
$ (409,469)
$ 3,108,716
$ 417,781
3,769,436
(342,365)
3,427,071
349,623
19,643,440
(1,413,132)
18,230,308
1,451,002
666,248
(89,738)
576,510
91,493
10,181,736
1,423,602
-
11,605,338
-
-
1,698,152
1,698,152
-
1,575,644
281,244
(157,564)
1,699,324
169,932
$ 39,354,689
$ 3,402,998
$ (2,412,268)
$40,345,419
$ 2,479,831
$ 9,779,000 $ $ (879,000) $ 8,900,000 $ 900,000
5,252,560 (377,868) 4,874,692 387,998
3,251,873 435,857 - 3,687,730 -
465,262 85,615 (46,526) 504,351 50,434
$ 18,748,695 $ 521,472 $ (1,303,3941 $17,966,773 $ 1,338,432
For governmental activities, compensated absences, net pension obligations, and net other postemployment benefit obligations
are generally liquidated by the general fund.
Page 63
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 8 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Interfund transfers for the year ended September 30, 2022 consisted of the following:
Transfers In
Internal
General
Capital
Nonmajor
Water Sewer
Stormwater
Service
Transfers Out:
Fund
Projects
Govt
Fund Fund
Fund
Fund
Total
General Fund
$
$ 8,121,558
$ 218,472
$ - $
$
$ 228,588
$ 8,568,618
Infrastructure Fund
190,000
2,030,616
-
2,220,616
ARPA Fund
10,000,000
-
-
455,622 364,528
410,420
180,539
11,411,109
Water Fund
1,204,007
-
- -
-
-
1,204,007
Sewer Fund
1,286,686
-
-
1,286,686
Nonmajor
-
Governmental
-
584,376
584,376
$12,490,693
$ 8,311,558
$2,833,464
$455,622 $364,528
$ 410,420
$ 409,127
$25,275,412
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.
The composition of interfund advances as of September 30, 2022 is as follows:
Receivable Fund
Sewer Fund
Sanitation Fund
Payable Fund Amount
Stormwater Fund $ 275,000
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 9 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.
Page 64
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
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, 2021 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.
Plan Membership - At September 30, 2022 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
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2022, 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, 2022 were as follows:
Total Pension Liability $ 227,221
Plan Fiduciary Net Position (221,006)
Sponsor's Net Pension Liability (Asset) $ 6,215
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 97.26%
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2021, updated September 30, 2022 using
the following actuarial assumptions:
Inflation 2.62%
Salary Increases 0.00%
Investment Rate of Return 7.00%
Page 65
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
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, 2022 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
25%
4.60%
U.S. Small Cap Equity
14%
5.50%
Non-U.S. Equity
21%
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, 2021
$ 247,282
$ 286,556
$ (39,274)
Changes Due to:
Service Cost
-
-
Expected interest growth
15,382
18,979
(3,597)
Unexpected investment income
-
(53,132)
53,132
Demographic experience
-
-
-
Employer contributions
5,582
(5,582)
Benefit payments and refunds
(35,443)
(35,443)
-
Administrative expenses
-
(1,536)
1,536
Assumption changes
-
-
-
Balance at September 30, 2022
$ 227,221
$ 221,006
$ 6,215
Page 66
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
1 % Decrease
6.00%
General Pension Plan Net Pension Liability $ 16,829
Current Discount
Rate 1 % Increase
7.00% 8.00%
$ 6,215 $ (3,509)
Deferred outflows and inflows of resources
For the year ended September 30, 2022 the City will recognize a pension expense of $3,425. On September 30, 2022 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 $
Net Difference Between Projected and actual Earnings on Pension Plan
Investments
25,127
25,127 $
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
$ 5,927
2023
4,583
2024
3,989
2025
10,628
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 11.26%. 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 $815,574 in 2022 and were recorded as revenue and
expenditures in the general fund.
Page 67
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
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, 2022 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 26
Inactive Plan Members Entitled to but Not Yet Receiving Benefits 35
Active Plan Members 82
143
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2022, 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, 2022 were as follows:
Total Pension Liability $ 25,528,150
Plan Fiduciary Net Position (24,704,716)
Sponsor's Net Pension Liability (Asset) $ 823,434
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 96.77%
* 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, 2021, updated September 30, 2022 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.
Page 68
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
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, 2022 are summarized in the following table:
Long Term
Expected Real Rate
Asset Class
Target Allocation
of Return
Domestic Equity
40%
7.10%
International Equity
10%
3.10%
Bonds
25%
2.00%
Convertibles
10%
6.40%
Private Real Estate
10%
6.40%
Infrastructure
5%
5.60%
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, 2021
$ 23,763,682
$ 28,938,693
$ (5,175,011)
Changes Due to:
Service Cost
1,497,597
-
1,497,597
Expected interest growth
1,743,942
2,050,915
(306,973)
Unexpected investment income
-
(7,017,456)
7,017,456
Demographic experience
(610,237)
-
(610,237)
Employer contributions
-
1,380,471
(1,380,471)
Employee contributions
-
293,891
(293,891)
Benefit payments and refunds
(866,834)
(866,834)
-
Administrative expenses
-
(74,964)
74,964
Assumption changes
-
-
-
Balance at September 30, 2022
$ 25,528,150
$ 24,704,716
$ 823,434
Page 69
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
1 % Decrease
6.00%
Police Pension Net Pension Liability (Asset) $ 4,463,663 $
Current Discount
Rate 1 % Increase
7.00% 8.00%
823,434 $ (2,135,910)
Deferred outflows and inflows of resources
For the year ended September 30, 2022 the City will recognize a pension expense of $1,785,273. On September 30, 2022 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 $ 186,740 $ 891,584
Changes of assumptions 818,671 -
Netdifference between projected and actual earnings on pension plan
investments 3,260,932
$ 4,266,343 $ 891,584
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:
2023 $ 824,078
2024 605,244
2025 647,223
2026 1,389,007
2027 (8,440)
Thereafter (82,353)
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, 2022 is $0.
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, 2021 actuarial valuation was 14.45%. 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 $540,247 in 2022 and were recorded as revenue and
expenditures in the general fund.
Page 70
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
Benefits Provided
The plan provides retirement, disability, and pre -retirement death benefits. Normal retirement is defined as the attainment of age 55
and 10 years of service, or 20 years of service, regardless of age. The normal retirement benefit is the number of years of credited
service prior to October 1, 2002 multiplied by 2.25%, and the number of years of credited service after October 1, 2002 multiplied by
3%, and multiplied by the average final monthly compensation. Volunteer firefighters earn a minimum benefit of $5 for each year of
service. Early retirement is defined as attainment of age 50 and 10 years of service; however, the early retirement benefit is reduced
by 3% for each year before the normal retirement date. Employees are 50% vested after five years of service, increasing at the rate
of 10% per year, up to 100% vesting after 10 years of service. Disability benefits are the larger of the basic pension formula or 42%
of average earnings for service connected disabilities. For non -service connected disabilities, benefits are the larger of the basic
pension formula or 25% of average earnings, and require 10 years of service. Disability pension is offset as necessary to preclude
the total of the participant's worker's compensation, disability pension, and other City -financed disability or salary continuation benefit
(excluding social security benefits) from exceeding average earnings. Pre -retirement death benefits for vested members are the
vested portion of the basic pension formula, reduced for payment prior to normal retirement age (payable for 10 years certain to the
beneficiary of a vested participant). For non -vested participants, the benefit is the return of accumulated employee contributions.
Plan Membership
At September 30, 2022 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 6
Inactive Plan Members Entitled to but Not Yet Receiving Benefits 69
Active Plan Members 79
154
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2022, 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, 2022 were as follows:
Total Pension Liability
Plan Fiduciary Net Position
Sponsor's Net Pension Liability (Asset)
26,871,032
(25,996,314)
874,718
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 96.74%
* 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, 2022 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.
Page 71
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
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, 2022 are summarized in the following table:
Long Term
Expected Real Rate
Asset Class
Target Allocation
of Return
Domestic Equity
40%
7.10%
International Equity
10%
3.10%
Bonds
25%
2.00%
Convertibles
10%
6.40%
Private Real Estate
10%
6.40%
Infrastructure
5%
5.60%
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, 2021
$ 23,825,081
$ 29,191,362
$ (5,366,281)
Changes Due to:
Service Cost
1,700,162
-
1,700,162
Expected interest growth
1,768,108
2,106,397
(338,289)
Unexpected investment income
-
(7,132,455)
7,132,455
Demographic experience
(231,493)
-
(231,493)
Employer contributions
-
1,799,505
(1,799,505)
Employee contributions
-
324,115
(324,115)
Benefit payments and refunds
(190,826)
(190,826)
-
Administrative expenses
-
(101,784)
101,784
Assumption changes
-
-
-
Balance at September 30, 2022
$ 26,871,032
$ 25,996,314
$ 874,718
Page 72
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
1% Decrease
6.00%
Fire Pension Net Pension Liability (Asset) $ 4,688,587 $
Current Discount
Rate 1 % Increase
7.00% 8.00%
874,718 $ (2,220,715)
Deferred outflows and inflows of resources
For the year ended September 30, 2022 the City will recognize a pension expense of $2,242,258. On September 30, 2022 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 $ 101,093 $ 351,598
Changes of assumptions 1,454,102 -
Net difference between projected and actual earnings on pension plan
investments 3,410,514
$ 4,965,709 $ 351,598
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
$ 1,114,512
2023
1,008,424
2024
1,029,242
2025
1,481,081
2026
(31)
Thereafter
(19,117)
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, 2022 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 2022 was $9,762,009; the City's total payroll for City employees was $23,698,878.
Page 73
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 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 2022 was $975,293.
Aggregate Amounts of All Pension Plans
The aggregate amounts for all of the City's defined benefit pension plans at September 30, 2022 are as follows:
Governmental Activities
Net Pension
Asset (Liability)
Deferred Inflows
Deferred Outflows
Expense
General Employees Pension Plan $ (6,215)
$ -
$ 25,127
$ 3,425
Police Pension Plan (823,434)
(891,584)
4,266,343
1,785,273
Firefighters Pension Plan (874,718)
(351,598)
4,965,709
2,242,258
$ (1,704,367)
$ (1,243,182)
$ 9,257,179
$ 4,030,956
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, 2022
Assets:
Cash and cash equivalents
Investments:
U.S. Government& other debt securities
Equities
Real estate
Total Investments
Receivables
Total assets
Liabilities:
General Police
Employees Officers Firefighters Total
Defined Pension Pension Employee
Benefit Trust Trust Pension Funds
$ 2,154 $ 546,166 $ 1,281,162 $ 1,829,482
63,335
8,244,580
8,529,713
16,837,628
149,935
16,256,290
16,132,413
32,538,638
-
1,057,014
1,057,014
2,114,028
213,270
25,557,884
25,719,140
51,490,294
5,582
-
-
5,582
221,006
26,104,050
27,000,302
53,325,358
Refunds payable and other
3,443
3,422
6,865
Pending trades payable
10,013
10,674
20,687
Total liabilities
- 13,456
14,096
27,552
Net Position Restricted for Pensions
$ 221,006 $ 26,090,594
$ 26,986,206
$ 53,297,806
Page 74
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 9 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, 2022
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benefit
Trust
Trust
Pension Funds
Additions:
Contributions:
Employer
$ 5,582
$ 769,420
$ 1,259,258
$ 2,034,260
Plan members
-
293,891
400,955
694,846
State
-
815,574
540,247
1,355,821
Total contributions
5,582
1,878,885
2,200,460
4,084,927
Investment earnings:
Net increase (decrease) in fair value of
investments
(34,152)
(6,183,700)
(6,170,415)
(12,388,267)
Interest and dividends
981,627
970,823
1,952,450
Investment expense
(24,874)
(22,074)
(46,948)
Total net investment earnings
(34,152)
(5,226,947)
(5,221,666)
(10,482,765)
Total additions
(28,570)
(3,348,062)
(3,021,206)
(6,397,838)
Deductions:
Benefits/distributions
35,443
1,221,334
375,730
1,632,507
Refund of contributions
-
-
-
-
Administrative expenses
1,536
74,964
101,784
178,284
Total deductions
36,979
1,296,298
477,514
1,810,791
Change in Net Position
(65,549)
(4,644,360)
(3,498,720)
(8,208,629)
Net Position Restricted for Pensions
Beginning of Year
286,555
30,734,954
30,484,926
61,506,435
End of Year
$ 221,006
$ 26,090,594
$ 26,986,206
$ 53,297,806
NOTE 10 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 75
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 10 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
As of October 1, 2021, the valuation date, there were 361 active employees and 10 inactive employees currently receiving
benefits. The OPEB liability of $15,293,068 was measured as of September 30, 2022 and was determined by the actuarial
valuation. The covered payroll was $22,813,150, and the ratio of Net OPEB liability as a percentage of covered payroll was
67.04%.
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
7.50%
4.54%
Fiscal year 2090
October 1, 2021
Entry Age Normal
4.02%
3.10%
4%
NA
22,813,150
67.04%
* 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, 2022.
Page 76
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 10 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Below are the details regarding the Total OPEB liability for the measurement period from October 1, 2021, to September 30,
2022.
Total OPEB
Liability
Balance as of 9/30/2021
$ 13,433,609
Changes for the year:
Service Cost
1,137,810
Interest
594,122
Difference Between Expected & Actual Experience
107,807
Changes of Assumptions and Other Inputs
180,141
Benefit Payments �'�
(160,421)
Other Changes
-
NetChanges
$ 1,859,459
Balance as of 9/30/2022
$ 15,293,068
(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
3.02% 4.02% 5.02%
Total OPEB Liability $ 17,850,653 $ 15,293,068 $ 13,209,564
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 $ 12,946,613 $ 15,293,068 $ 18,209,104
For the fiscal year ended September 30, 2022, 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
Resources
$ 516,237
1,481,716
$ 1,997,953
Deferred Inflows of
Resources
465,674
$ 465,674
Page 77
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 10 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,
2023
$ 367,077
2024
367,077
2025
332,959
2026
316,162
2027
65,032
Thereafter
83,972
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 11 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 $205,245 represents claims processed through October 2022 which were applicable to the current fiscal
year and any additional claims are deemed immaterial. Changes to the current claims liability are as follows:
2022 2021
Claims Liabilities, beginning of year $ 334,618 $ 206,017
Incurred Claims 6,021,659 5,962,564
Payments on Claims (6,151,032) (5,833,963)
Claims Liabilities, end of year $ 205,245 $ 334,618
Page 78
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 12 COMMITMENTS AND CONTINGENCIES
Litigation
The City is engaged in various liability claims incidental to the conduct of its general government operations at September 30,
2022. 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 13 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 79
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2022
NOTE 13 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, 2022, 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
$ 462,586
$
$
$ 10,275
$ 472,861
Spendable
Restricted for:
Police
70,496
1,112,851
1,183,347
Fire
-
2,488,103
2,488,103
Transportation
24,742
24,742
Tree replacement
322,516
322,516
Building Services
-
2,394,163
2,394,163
Culture and recreation
-
4,316,085
4,316,085
Community redevelopment
-
502,606
502,606
Infrastructure
-
4,037,993
-
4,037,993
Debtservice
-
-
1,862,888
1,862,888
Cemetery
-
1,547,880
1,547,880
Assigned for:
Capital projects
-
11,197,852
-
11,197,852
Police/fire donations
9,287
9,287
Subsequent year expenditures
1,358,379
-
1,358,379
Unassigned
17,840,316
-
-
17,840,316
$ 20,088,322
$11,197,852
$ 4,037,993
$ 14,234,851
$49,559,018
Page 80
REQUIRED SUPPLEMENTAL INFORMATION
Page 81
n
Page 82
City of Clermont, Florida
Schedule of Changes in Net OPEB Liability and Related Ratios
Last 10 Fiscal Years
9/30/2022
9/30/2021
Total OPEB Liability
Service cost
$ 1,137,810 $
760,368 $
Interest
594,122
333,917
Differences between expected and actual experience
107,807
-
Changes of assumptions
180,141
-
Benefit Payments (2)
(160,421)
(213,932)
Other changes
-
-
Net change in total OPEB liability
1,859,459
880,353
Total OPEB liability, beginning (1)
13,433,609
12,553,256
Total OPEB liability, ending
$ 15,293,068 $
13,433,609 $
Plan fiduciary net position as a percentage of total OPEB liability
0.00%
0.00%
Covered payroll
$ 22,813,150 $
19,075,627 $
Net OPEB liability as a percentage of covered payroll
67.04%
70.42%
Notes to Schedule:
(1) Fiscal Year 2016 results calculated one year later using a 3.35%
Discount Rate index as of9/30/2017.
(2) Includes the Implicit Rate Subsidy.
Prior year information not available, will be updated when information is available
9/30/2020
740,666 $
309,219
(242,837)
807,048
11,746,208
12,553,256 $
0.00%
19,075,627 $
65.81 %
9/30/2019
721,475 $
288,724
181,592
2,106,772
(236,545)
3,062,018
8,684,190
11,746,208 $
0.00%
18,701,595 $
62.81 %
9/30/2018
496,316
312,754
(662,223)
(109,600)
37,247
8,646,943
8,684,190
0.00%
14,293,247
60.76%
Page 83
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - General Employees
Year Ended September 30, 2022
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
9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014
15,382 21,619 21,619 21,414 23,435 22,569 22,224 29,060 28,229
(29,410) - - 33,131 - 17,118 12,118 40,676 -
- - - 28,462 31,161 (10,549)
(35,443) (49,982) (49,982) (53,410) (51,013) (57,338) (61,435) (63,484) (56,412)
(49,471) (28,363) (28,363) 1,135 (27,578) 10,811 4,068 (4,297) (28,183)
276,692 305,055 333,418 332,283 359,861 349,050 344,982 349,279 377,462
$227,221 $276,692 $305,055 $333,418 $332,283 $359,861 $349,050 $344,982 $ 349,279
5,582 5,582 11,018 11,018 8,767 8,767 - - -
(34,153) 51,033 16,320 14,396 24,889 44,469 29,829 2,613 40,560
(35,443) (38,315) (42,156) (53,410) (57,338) (57,338) (61,435) (63,484) (66,212)
(1,536) (5,235) (5,271) (1,597) (1,681) (5,457) (1,757) (6,508) (3,136)
(89) - -
(65,639) 13,065 (20,089) (29,593) (25,363) (9,559) (33,363) (67,379) (28,788)
286,645 273,580 293,669 323,262 348,625 358,184 391,547 458,926 487,714
$221,006 $286,645 $273,580 $293,669 $323,262 $348,625 $358,184 $391,547 $ 458,926
$ 6,215 $ (9,953) $ 31,475 $ 39,749 $ 9,021 $ 11,236 $ (9,134) $ (46,565) $(109,647)
97.26% 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 N/A
Page 84
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - Police
Year Ended September 30, 2022
9/30/2022
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
$ 1,497,597
$ 1,335,386
$ 1,048,755
$ 1,048,755
$ 941,659
$ 941,659
$ 836,661
$ 560,680
$ 524,531
Interest
1,743,942
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
(610,237)
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
(866,834)
(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
1,764,468
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
23,763,682
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)
$25,528,150
$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
1,380,471
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
293,891
268,568
238,416
175,526
120,269
116,332
108,806
99,188
95,733
Net Investment Income
(4,966,541)
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
(866,834)
(550,996)
(446,562)
(403,441)
(381,207)
(640,378)
(342,697)
(298,559)
(334,599)
Administrative Expense
(74,964)
(59,823)
(61,414)
(102,202)
(51,400)
(49,645)
(30,651)
(54,494)
(31,851)
Other
-
-
-
-
-
-
-
-
Net Change in Plan Fiduciary Net Position
(4,233,977)
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
28,938,693
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)
$24,704,716
$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)
$ 823,434
$ (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
96.77%
121.78%
111.24%
106.49%
103.78%
102.57%
100.31 % 127.13% 137.69%
Covered Payroll
$ 5,341,730
$ 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
15.42%
-109.40%
-61.58%
-32.31%
-19.82%
-12.25%
-1.32%-88.40%-142.50%
Page 85
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - Fire
Year Ended September 30, 2022
Total Pension Liability
Service Cost
Interest
Changes in Excess State Money
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, including refunds of employee
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
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)
9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014
$ 1,700,162 $ 1,555,175 $ 1,313,842 $ 1,313,842 $ 1,025,516 $ 1,025,516 $ 784,710 $ 524,325 $ 596,543
1,768,108
1,542,677
1,272,336
1,141,847
996,576
782,004
515,458
553,753
530,089
(231,493)
(18,454)
(158,435)
(121,553)
633,143
(208,729)
(67,286)
294,977
1,079,623
634,356
2,505,255
-
(190,826)
(283,350)
(288,092)
(99,705)
(25,120)
(4,513)
(1,324)
(945)
(81,466)
3,045,951
3,091,025
2,298,086
3,277,172
1,875,419
3,070,506
3,595,370
1,009,847
1,045,166
23,825,081
20,734,056
18,435,970
15,158,798
13,283,379
10,212,873
6,617,503
5,607,656
4,562,490
$26,871,032 $23,825,081 $20,734,056 $18,435,970 $15,158,798 $13,283,379 $10,212,873 $ 6,617,503 $ 5,6075656
1,799,505
1,606,558
1,649,080
1,585,514
1,278,757
797,699
491,818
646,065
438,902
-
-
-
-
-
-
-
181,292
175,931
324,115
316,273
220,098
231,935
200,118
238,785
279,064
141,632
86,520
(5,026,058)
4,864,047
2,267,101
1,240,965
1,063,078
1,599,687
858,136
(32,699)
704,467
(190,826)
(283,350)
(288,092)
(99,705)
(25,120)
(4,513)
(1,324)
(945)
(756)
(101,784)
(83,741)
(65,477)
(98,170)
(35,839)
(49,761)
(28,346)
(40,885)
(24,109)
(3,195,048)
6,419,787
3,782,710
2,860,539
2,480,994
2,581,897
1,599,348
894,460
1,380,955
29,191,362
22,771,575
18,988,865
16,128,326
13,647,332
11,065,435
9,466,087
8,571,627
7,190,672
$25,996,314
$29,191,362
$22,771,575
$18,988,865
$16,128,326
$13,647,332
$11,065,435
$ 9,466,087
$ 8,571,627
$ 874,718 $ (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 96.74% 122.52% 109.83% 103.00% 106.40% 102.74% 108.35% 143.05% 152.86%
Covered Payroll $ 5,633,189 $ 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 15.53%-105.44%-45.91%-12.46%-26.91%-10.10%-30.47%-101.81%-105.93%
Page 86
City of Clermont, Florida
Schedule of Contributions and Investment Returns — General Employees
Year Ended September 30, 2022
9/30/2022 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 $ 5,582 $ 11,018 $ 11,018 $ 8,767 $ 8,767 $ - $ - $ -
Contributions in Relation to the
Actuarially Determined Contribution 5,582 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 N/A N/A
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
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 9/30/2022 9/30/2021 9/3012020 9130/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 913012014
Annual money -weighted rate of return, net of
investment expenses -12.61% 5.92% 4.23% 4.23% 7.00% 4.08% 4.08% 5.48% 8.55%
Page 87
City of Clermont, Florida
Schedule of Contributions and Investment Returns — Police
Year Ended September 30, 2022
9/30/2022 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
$ 661,843 $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
1,380,471 1,084,478
943,063
891,380
944,540
756,302
632,411
522,208
670,126
Contribution Deficiency (Excess)
$ (718,628) $ -
$ 42,548
$ 45,454
$ (39,311)
$ 119,291
$ 7,728
$ 61,351
$ (40,520)
Covered Payroll $ 5,341,730 $ 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 25.84% 22.93% 24.73% 23.37% 28.06% 22.46% 18.78% 16.80% 21.56%
Notes to Schedule
Valuation Date 10/1/2021
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% stage 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
Annual money -weighted rate of return,
net of investment expenses
9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014
-17.83% 21.40% 4.23% 4.23% 7.00% 4.08% 4.08% 5.48% 8.55%
Page 88
City of Clermont, Florida
Schedule of Contributions and Investment Returns — Fire
Year Ended September 30, 2022
9/30/2022
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
$1,170,865
$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
1,799,505
1,606,558
1,649,080
1,585,514
1,278,757
797,699
491,818
827,357
668,800
Contribution Deficiency (Excess)
$ (628,640)
$ (58,792)
$ (406)
$ -
$ 5,498
$ 315,396
$ 155,658
$ (224,357)
$ (53,967)
Covered Payroll
5,633,189
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
31.94%
31.57%
37.15%
35.72%
35.49%
22.14%
17.58%
29.57%
23.90%
Notes to Schedule
Valuation Date
10/1/2021
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 from4.30% atage 20 to 0.00% atage 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 1.75% to account for non-investTent expenses
Future Contributions
Contributions from the employer and employees are assumed to be made as legally required.
Schedule of Investment Returns
9/30/2022 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
-16.90% 20.90% 4.23% 4.23% 7.00% 4.08% 4.08% 5.48% 8.55%
Page 89
n
Page 90
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Page 91
n
Page 92
City of Clermont, Florida
Major Governmental Funds
Year Ended September 30, 2022
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 93
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Capital Projects Fund
Year ended September 30, 2022
Revenues:
Intergovernmental revenues
Investment earnings
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Capital Outlay:
General government
Physical environment
Economic environment
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Sources:
Transfers in
Total other financing sources
Net Change in Fund Balance
Fund Balances - beginning
Fund Balances - ending
Budgeted Amounts Actual Amounts
Original Final
500,000 $ - $ - $
18,000 18,000 70,912
518,000 18,000 70,912
1,019
3,000,000
3,001,019
(2,483,019)
(2,483,019)
11,215,232
8,732,213 $
R
10,891,083
7,752,465
18,644,567
(18,626,567)
8,471,492
8,471,492
(10,155,075)
11,215,232
1,060,157 $
Variance with
Final Budget -
Positive
(Negative)
52,912
52,912
R
4,004,785
6,886,298
4,395,065
3,357,400
8,399,850
10,244,717
(8,328,938)
10,297,629
8,311,558
8,311,558
(17,380)
11,215,232
11,197,852 $
(159,934)
(159,934)
10,137,695
10,137,695
Page 94
City of Clermont, Florida
Other Governmental Funds
Year Ended September 30, 2022
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 95
City of Clermont, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2022
Special Revenue
Recreation
Police Impact
Fire Impact
Building
Impact Fees
Fees
Fees
Services
Assets:
Cash and cash equivalents
$ 2,689,330
$ 675,506
$ 1,437,799 $
1,715,605
Investments
1,660,199
440,946
1,065,009
1,418,220
Other receivables
1,336
764
887
1,272
Due from other governments
-
-
-
-
Prepaid costs
-
-
-
6,327
Total assets
$ 4,350,865
$ 1,117,216
$ 2,503,695 $
3,141,424
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ 34,780
$ 4,365
$ 15,592 $
36,969
Accrued liabilities
-
-
-
20,423
Deposits
683,542
Due to other funds
-
-
-
-
Totalliabilities
34,780
4,365
15,592
740,934
Fund balances:
Nonspendable - - - 6,327
Restricted 4,316,085 1,112,851 2,488,103 2,394,163
Total fund balances 4,316,085 1,112,851 2,488,103 2,400,490
Total liabilities and fund balances $ 4,350,865 $ 1,117,216 $ 2,503,695 $ 3,141,424
Page 96
Special Revenue
Community
Total Nonmajor
Redevelopment
Total Special
Governmental
Special Revenue
Cemetery
Revenue Funds
Debt Service
Funds
$ 282,504 $
445,600
$ 7,246,344
$ 1,807,840
$ 9,054,184
328,393
1,103,200
6,015,967
55,048
6,071,015
572
1,439
6,270
-
6,270
3,714
234
10,275
-
10,275
$ 615,183 $
1,550,473
$ 13,278,856
$ 1,862,888
$ 15,141,744
$ 106,797
$ 443
$ 198,946
$ $ 198,946
2,066
1,916
24,405
24,405
-
-
683,542
683,542
108,863
2,359
906,893
906,893
3,714
234
10,275
10,275
502,606
1,547,880
12,361,688
1,862,888 14,224,576
506,320
1,548,114
12,371,963
1,862,888 14,234,851
$ 615,183
$ 1,550,473
$ 13,278,856
$ 1,862,888 $ 15,141,744
Page 97
City of Clermont, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended September 30, 2022
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Impact fees/special assessments
Investment earnings (loss)
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
2,171,633
-
-
-
129,531
2,068,218
515,142
685,604
-
(5,652)
(7,564)
(4,399)
(7,498)
2,062,566
507,578
681,205
2,293,666
218,116 138,282 1,886,084
306,182
306,182
218,116
138,282
1,886,084
1,756,384
289,462
542,923
407,582
(569,616)
(14,760)
(569,616)
(14,760)
-
-
1,186,768
274,702
542,923
407,582
3,129,317
838,149
1,945,180
1,992,908
$ 4,316,085 $
1,112,851 $
2,488,103 $
2,400,490
Page 98
Community
Total Nonmajor
Redevelopment
Total Special
Governmental
Special Revenue
Cemetery
Revenue Funds
Debt Service Funds
$ 502,346 $
$ 502,346
$ $ 502,346
-
2,171,633
2,171,633
145,800
275,331
275,331
-
3,268,964
3,268,964
(5,873)
(13,358)
(44,344)
2,266 (42,078)
-
4,270
4,270
- 4,270
496,473
136,712
6,178,200
2,266 6,180,466
-
2,242,482
2,242,482
-
120,025
120,025
120,025
497,359
-
497,359
497,359
-
306,182
-
306,182
-
2,164,966
2,164,966
-
-
-
641,573
641,573
497,359
120,025
3,166,048
2,806,539
5,972,587
(886)
16,687
3,012,152
(2,804,273)
207,879
-
-
-
2,833,464
2,833,464
(584,376)
-
(584,376)
-
-
(584,376)
2,833,464
2,249,088
(886)
16,687
2,427,776
29,191
2,456,967
507,206
1,531,427
9,944,187
1,833,697
11,777,884
$ 506,320 $
1,548,114
$ 12,371,963
$ 1,862,888
$ 14,234,851
Page 99
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Recreation Impact Fees
Year ended September 30, 2022
Revenues:
Impact fees/special assessments
Investment earnings (loss)
Total revenues
Expenditures:
Current:
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Uses
Transfers out
Total other financing uses
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Budgeted Amounts Actual Amounts
Original Final
Variance with
Final Budget -
Positive
(Negative)
$ 1,500,000 $
2,000,000 $
2,068,218 $
68,218
7,000
5,000
(5,652)
(10,652)
1,507,000
2,005,000
2,062,566
57,566
186,680
819,655
306,182
513,473
186,680
819,655
306,182
513,473
1,320,320
1,185,345
1,756,384
571,039
(569,618)
(569,618)
(569,616)
2
(569,618)
(569,618)
(569,616)
2
750,702
615,727
1,186,768
571,041
3,129,317
3,129,317
3,129,317
-
$ 3,880,019 $
3,745,044 $
4,316,085 $
571,041
Page100
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Police Impact Fees
Year ended September 30, 2022
Revenues:
Impact fees/special assessments
Investment earnings (loss)
Total revenues
Expenditures:
Current:
Public Safety:
Law enforcement
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
340,000 $ 500,000 $ 515,142 $ 15,142
4,000 2,000 (7,564) (9,564)
344,000 502,000 507,578 5,578
277,532
817,244
218,116
599,128
277,532
817,244
218,116
599,128
66,468
(315,244)
289,462
604,706
(14,763)
(14,763)
51,705
838,149
889,854 $
(14,763)
(14,763)
(330,007)
838,149
508,142 $
(14,760)
(14,760)
274,702
838,149
1,112,851 $
3
3
604,709
604,709
Page 101
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Impact Fees
Year ended September 30, 2022
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Impact fees/special assessments
$ 405,000 $
630,000
$ 685,604 $
55,604
Investment earnings (loss)
5,000
2,000
(4,399)
(6,399)
Total revenues
410,000
632,000
681,205
49,205
Expenditures:
Current:
Public safety:
Fire control
386
238,269
138,282
99,987
Total expenditures
386
238,269
138,282
99,987
Excess (deficiency) of revenues over expenditures
409,614
393,731
542,923
149,192
Net Change in Fund Balances
409,614
393,731
542,923
149,192
Fund Balances - beginning
1,945,180
1,945,180
1,945,180
-
Fund Balances - ending
$ 2,354,794 $
2,338,911
$ 2,488,103 $
149,192
Page102
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Building Services
Year ended September 30, 2022
Revenues:
Licenses and permits
Charges for services
Investment earnings (loss)
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
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 1,421,000 $ 1,921,000 $ 2,171,633 $ 250,633
60,200 104,200 129,531 25,331
7,000 2,000 (7,498) (9,498)
1,488,200 2,027,200 2,293,666 266,466
1,900,249
2,100,969
1,886,084
214,885
1,900,249
2,100,969
1,886,084
214,885
(412,049)
(73,769)
407,582
481,351
(412,049) (73,769) 407,582 481,351
1,992,908 1,992,908 1,992,908 -
$ 1,580,859 $ 1,919,139 $ 2,400,490 $ 481,351
Page103
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Community Redevelopment Special Revenue
Year ended September 30, 2022
Revenues:
Taxes
Intergovernmental revenues
Investment earnings (loss)
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
510,271 $ 502,346 $ 502,346 $
3,000 2,000 (5,873)
513,271 504,346 496,473
533,433
533,433
(20,162)
(20,162)
507,206
487,044 $
1,011,555
1,011,555
(507,209)
(507,209)
507,206
(3) $
497,359
497,359
(886)
(886)
507,206
506,320 $
Variance with
Final Budget -
Positive
(Negative)
(7,873)
(7,873)
514,196
514,196
506,323
506,323
506,323
Page104
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Cemetery
Year ended September 30, 2022
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual Amounts
(Negative)
Original
Final
Revenues:
Charges for services
$ 150,000 $
150,000
$ 145,800 $
(4,200)
Investment earnings (loss)
7,000
2,000
(13,358)
(15,358)
Miscellaneous
2,000
2,000
4,270
2,270
Total revenues
159,000
154,000
136,712
(17,288)
Expenditures:
Current:
Physical environment
163,272
191,711
120,025
71,686
Total expenditures
163,272
191,711
120,025
71,686
Excess (deficiency) of revenues over expenditures
(4,272)
(37,711)
16,687
54,398
Net Change in Fund Balances
(4,272)
(37,711)
16,687
54,398
Fund Balances - beginning
1,531,427
1,531,427
1,531,427
-
Fund Balances - ending
$ 1,527,155 $
1,493,716
$ 1,548,114 $
54,398
Page105
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Debt Service
Year ended September 30, 2022
Revenues:
Investment earnings
Total revenues
Expenditures:
Current:
General government
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Sources:
Transfers in
Total other financing sources
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Variance with
Final Budget -
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
$ 1,000 $ 1,000 $ 2,266 $ 1,266
1,000 1,000 2,266 1,266
500
500
2,164,934
2,164,934
2,164,966
(32)
641,573
641,573
641,573
-
2,806,507
2,807,007
2,806,539
468
(2,805,507)
(2,806,007)
(2,804,273)
1,734
2,833,462
2,833,462
2,833,464
2
2,833,462
2,833,462
2,833,464
2
27,955
27,455
29,191
1,736
1,833,697
1,833,697
1,833,697
-
$ 1,861,652 $
1,861,152 $
1,862,888 $
1,736
Page106
City of Clermont, Florida
Fiduciary Funds
Year Ended September 30, 2022
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.
Page107
City of Clermont, Florida
Combining Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2022
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benefit
Trust
Trust
Pension Funds
Assets:
Cash and cash equivalents
$ 2,154 $
546,166 $
1,281,162
$ 1,829,482
Investments at fair value:
U.S. Government & other debt securities
63,335
8,244,580
8,529,713
16,837,628
Equities
149,935
16,256,290
16,132,413
32,538,638
Real estate
1,057,014
1,057,014
2,114,028
Total Investments
213,270
25,557,884
25,719,140
51,490,294
Accounts receivable
5,582
-
-
5,582
Total assets
221,006
26,104,050
27,000,302
53,325,358
Liabilities:
Refunds payable and other
-
3,443
3,422
6,865
Pending trade payables
10,013
10,674
20,687
Total liabilities
-
13,456
14,096
27,552
Net Position Restricted for Pensions
$ 221,006 $
26,090,594 $
26,986,206
$ 53,297,806
Page108
City of Clermont, Florida
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended September 30, 2022
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benefit
Trust
Trust
Pension Funds
Additions:
Contributions:
Employer
$ 5,582 $
769,420 $
1,259,258
$ 2,034,260
Plan members
-
293,891
400,955
694,846
State
-
815,574
540,247
1,355,821
Total contributions
5,582
1,878,885
2,200,460
4,084,927
Investment earnings:
Net increase (decrease) in fair value of
investments
(34,152)
(6,183,700)
(6,170,415)
(12,388,267)
Interest and dividends
981,627
970,823
1,952,450
Less: Investment expense
(24,874)
(22,074)
(46,948)
Total net investment earnings
(34,152)
(5,226,947)
(5,221,666)
(10,482,765)
Total additions
(28,570)
(3,348,062)
(3,021,206)
(6,397,838)
Deductions:
Benefits/distributions
35,443
1,221,334
375,730
1,632,507
Refund of contributions
-
-
-
-
Administrative expenses
1,536
74,964
101,784
178,284
Total deductions
36,979
1,296,298
477,514
1,810,791
Change in Net Position
(65,549)
(4,644,360)
(3,498,720)
(8,208,629)
Net Position Restricted for Pensions
Beginning of Year
286,555
30,734,954
30,484,926
61,506,435
End of Year
$ 221,006 $
26,090,594 $
26,986,206
$ 53,297,806
Page109
n
Page110
STATISTICAL SECTION
Page111
n
Page112
City of Clermont, Florida
Statistical Section
Year Ended September 30, 2022
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 114
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 124
These schedules contain information to help the reader assess the government's most significant
local revenue source, the property tax.
Debt Capacity 129
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 136
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 140
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.
Page113
City of Clermont, Florida
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Fiscal Year
2014 2015 2016
$ 44,116 $ 47,718 $ 52,064
9,918 9,400 6,402
5,719 11,649 11,182
$ 59,753 $ 68,767 $ 69,648
Business -type activities
Net investment in capital assets
56,680
56,586
60,150
Restricted
10,217
12,135
13,959
Unrestricted
27,054
26,943
26,050
Total business -type activities net position
$ 93,951 $
95,664
$ 100,159
Primary government
Net investment in capital assets
100,796
104,304
112,214
Restricted
20,135
21,535
20,361
Unrestricted
32,773
38,592
37,232
Total primary government net position
$ 153,704 $
164,431
$ 169,807
Page114
Fiscal Year
2017
2018
2019
2020
2021
2022
$ 31,918
$
35,262
$
40,318
$
44,045
$
51,596
$
58,736
7,815
8,547
9,589
12,479
14,910
18,691
30,117
27,925
24,795
23,874
21,847
26,252
$ 69,850
$
71,734
$
74,702
$
80,398
$
88,353
$
103,679
63,131
69,322
66,104
68,310
88,520
86,667
17,127
16,904
20,362
24,195
25,420
30,273
26,667
23,959
28,286
28,728
28,555
29,688
$ 106,925
$
110,185
$
114,752
$
121,233
$
142,495
$
146,628
95,049
104,584
106,422
112,355
140,116
145,403
24,942
25,451
29,951
36,674
40,330
48,964
56,784
51,884
53,081
52,602
50,402
55,940
$ 176,775
$
181,919
$
189,454
$
201,631
$
230,848
$
250,307
Page115
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
2013
2014
2015
2016
$ 3,258
$ 3,407 $
3,848
$ 4,157
12,685
14,117
14,326
17,381
303
350
453
788
1,725
2,202
2,094
2,185
200
363
567
209
1,928
3,096
4,018
5,460
87
236
193
355
20,186
23,771
25,499
30,535
4,154
6,106
2,465
897
13,622
$ 33,808
4,589
6,437
2,472
1,016
14,514
$ 38,285
4,823
6,571
3,133
1,080
15,607
$ 41,106
4,719
6,866
2,925
1,142
15,652
$ 46,187
$ 2,117
$ 2,429
$ 2,356
$ 2,914
1,040
1,366
1,684
1,574
1,262
956
1,317
1,552
896
939
1,598
1,822
112
1,718
498
163
5,427
7,408
7,453
8,025
5,215
5,362
5,726
6,162
5,357
5,585
5,809
6,183
2,775
2,869
2,917
2,984
862
881
905
955
-
-
276
24
3,430
2,417
3,219
4,026
17,639
17,114
18,852
20,334
$ 23,066
$ 24,522
$ 26,305
$ 28,359
Page116
Fiscal Year
2017
2018
2019
2020
2021
2022
$ 4,240
$ 2,870
$ 5,023
$ 5,678
$ 5,918
$ 5,322
20,297
20,306
22,104
22,733
23,713
28,925
805
2,104
863
2,470
2,763
3,773
2,009
2,255
2,387
1,843
2,264
1,928
1,197
385
532
847
665
1,337
4,491
5,752
5,954
3,722
4,044
4,227
434
839
836
753
687
635
33,473
34,511
37,699
38,046
40,054
46,147
5,199
5,634
6,215
6,425
7,110
9,108
6,909
6,849
7,373
7,742
8,172
9,176
2,869
3,073
3,027
3,294
3,467
3,994
1,190
1,360
1,614
1,901
1,991
2,443
16,167
16,916
18,229
19,362
20,740
24,721
$ 49,640
$ 51,427
$ 55,928
$ 57,408
$ 60,794
$ 70,868
$ 3,180
$ 3,874
$ 3,590
$ 3,377
$ 4,250
$ 4,884
1,506
1,344
1,593
1,854
1,778
2,211
2,003
1,697
1,801
2,088
2,319
2,973
1,456
2,233
2,061
3,307
2,026
14,583
309
428
625
625
2,206
23
8,454
9,576
9,670
11,251
12,579
24,674
6,516
6,461
6,868
7,631
8,466
8,826
6,507
6,625
6,989
7,573
8,074
8,581
3,089
3,178
3,264
3,562
3,785
4,020
1,004
1,378
1,598
1,695
1,783
1,880
-
-
2,109
1
-
-
6,906
4,535
5,316
6,575
22,094
6,313
24,022
22,177
26,144
27,037
44,202
29,620
$ 32,476
$ 31,753
$ 35,814
$ 38,288
$ 56,781
$ 54,294
Page117
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenues and Other Changes in
Net Position
Governmental Activities:
Taxes:
Property taxes
Business taxes
Franchise taxes
Utility taxes
I ntergovernmental-unrestricted
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Miscellaneous
Transfers in/out
Special item
Total governmental activities
Business -type Activities:
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Miscellaneous
Transfers in/out
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
Fiscal Year
2013 2014 2015 2016
$ (14,759) $ (16,363) $ (18,045) $ (22,510)
4,018 2,600 3,245 4,683
$ (10,741) $ (13,763) $ (14,800) $ (17,827)
$ 5,350
$ 6,533
$ 7,193
$ 8,998
111
126
130
140
2,123
2,379
2,502
2,712
2,490
2,887
2,953
3,406
5,802
6,110
6,645
6,923
114
104
135
134
-
-
-
122
265
374
420
387
479
439
557
568
16,734
18,952
20,535
23,390
149
198
272
18
2
(1,248)
(479)
(439)
(557)
(312)
(239)
(1,533)
$ 16,422
$ 18,713
$ 19,002
$ 1,975
$ 2,589
$ 2,490
3,706
2,361
1,712
$ 5,681
$ 4,950
$ 4,202
'Business taxes previously reported as General Government Charges for Services
260
120
(568)
(188 )
$ 23,202
$ 880
4,495
$ 5,375
Page118
Fiscal Year
2017
2018
2019
2020
2021
2022
$ (25,019)
$
(24,935)
$
(28,029)
$
(26,795)
$
(27,477)
$
(21,472)
7,855
5,260
5,230
7,675
23,462
4,898
$ (17,164)
$
(19,675)
$
(22,799)
$
(19,120)
$
(4,015)
$
(16,574)
$ 9,748
$
10,747
$
11,945
$
13,090
$
14,354
$
15,350
133
160
157
162
144
145
2,619
2,817
3,142
3,203
3,360
3,813
3,328
3,446
3,873
4,202
4,467
4,684
7,257
7,864
8,139
8,403
9,969
12,180
197
458
1,089
632
70
(143)
86
289
193
-
-
42
486
342
352
623
721
433
1,367
2,013
2,106
2,177
2,346
294
25,221
28,136
30,996
32,492
35,431
36,798
255
379
1,295
953
106
(472)
24
31
150
29
40
1
(1,367)
(2,013)
(2,106)
(2,177)
(2,346)
(294)
(1,088)
(1,603)
(661)
(1,195)
(2,200)
(765)
$ 24,133
$
26,533
$
30,335
$
31,297
$
33,231
$
36,033
$ 202
$
3,202
$
2,968
$
5,697
$
7,954
$
15,326
6,767
3,657
4,568
6,480
21,262
4,133
$ 6,969
$
6,859
$
7,536
$
12,177
$
29,216
$
19,459
Page119
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2013
2014
2015
2016
General Fund
Nonspendable
$
189
$
53
$
1,300
$
548
Restricted
257
312
247
259
Assigned
765
1,202
304
-
Unassigned
8,878
7,669
7,014
7,886
Total general fund
$
10,089
$
9,236
$
8,865
$
8,693
All other governmental funds
Nonspendable
$
939
$
1,064
$
1,466
$
1,922
Restricted
8,295
8,604
7,659
4,310
Assigned
-
-
-
1,226
Unassigned
-
-
-
-
Total all other governmental funds
$
9,234
$
9,668
$
9,125
$
7,458
Page120
Fiscal Year
2017 2018 2019 2020 2021 2022
$ 578
$
641
$
283
$
356
$
453
$
462
266
228
205
359
448
418
3
3
18
3,227
1,390
1,368
7,137
7,104
8,182
7,859
11,617
17,840
$ 7,984
$
7,976
$
8,688
$
11,801
$
13,908
$
20,088
$ 1,683
$
4
$
7
$
9
$
13
$
10
5,885
8,361
9,376
12,111
14,450
18,263
22,621
21,720
18,700
15,476
11,215
11,198
$ 30,189
$
30,085
$
28,083
$
27,596
$
25,678
$
29,471
Page 121
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
2013
2014
2015
Revenues
Taxes
$ 7,951
$ 9,546
$ 10,275
Franchise fees
2,123
2,379
2,502
Licenses and permits
884
941
788
Intergovernmental
6,729
8,796
8,772
Charges for services
1,085
1,212
1,312
Fines and forfeitures
172
589
757
Impact fees/special assessments
1,909
1,401
1,858
Investment Earnings
108
99
131
Miscellaneous
622
915
1,047
Total revenues
21,583
25,878
27,442
Expenditures
Current:
General government
3,148
3,776
Public safety
12,579
13,571
Physical environment
307
423
Transportation
1,263
1,635
Economic environment
722
365
Human services
-
-
Culture and recreation
2,014
2,948
Capital outlay
2,638
9,381
Debt service:
Principal
3,080
571
Interest
122
177
Total expenditures
25,873
32,847
Excess (deficiency) of revenues
over expenditures
(4,290)
(6,969)
Other financing sources (uses)
Transfers in
3,091
9,337
Transfers out
(2,612)
(8,788)
Refunding and new bonds issued
2,612
6,000
Capital Leases
-
-
Sale of capital assets
-
-
Total other financing sources (uses)
3,091
6,549
Net change in fund balances
$ (1,199)
$ (420) $
Debt service as a percentage of noncapital
expenditures
14.9%
3.5%
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
3,600
14,844
744
1,635
564
3,725
2,695
884
198
28.889
(1,447)
3,857
(3,323)
534
(913)
4.5%
2016
$ 12,544
2,712
1,298
8,790
1,652
703
1,702
131
1,007
30,539
4,070
17,520
777
1,878
482
5,038
8,514
6,280
342
44,901
(14,362)
11,897
(11,329)
10,631
1,321
12,520
(1,842)
20.2%
Page122
2017 2018
$ 13,208
$ 14,353
2,619
2,817
1,594
2,249
9,054
10,559
1,746
2,103
358
204
2,341
1,738
192
446
1,122
971
32,234
35,440
Fiscal Year
2019
2020
$ 15,974 $
17,453
3,142
3,202
1,927
1,691
10,860
12,342
2,188
2,483
230
241
1,959
2,530
1,065
615
965
978
38,310
41,535
2021 2022
$ 18,964 $ 20,178
3,360
3,813
2,259
2,791
12,245
26,786
2,825
3,213
176
186
2,457
3,269
69
(138)
1,370
1,051
43,725
61,149
3,911
3,948
4,609
4,892
5,750
5,060
18,488
19,750
21,618
21,452
24,291
26,626
869
881
982
2,550
2,748
2,832
1,687
1,927
2,165
1,546
2,072
1,957
324
343
372
786
608
618
5,996
5,199
6,302
2,901
3,027
3,838
2,112
4,085
3,846
4,070
4,517
8,400
1,077
979
2,096
2,147
2,202
2,255
272
805
829
772
711
655
34,736
37,917
42,819
41,116
45,926
52,241
(2,502)
(2,477)
(4,509)
419
(2,201)
8,908
26,725
7,697
4,937
5,152
5,179
23,636
(25,957)
(6,332)
(2,834)
(2,974)
(2,833)
(22,785)
23,670
-
-
-
-
-
-
-
919
-
-
-
86
1,000
198
29
44
214
24,524
2,365
3,220
2,207
2,390
1,065
$ 22,022
$ (112)
$ (1,289)
$ 2,626
$ 189
$ 9,973
4.6%
5.7%
8.3%
8.2%
7.2%
6.2%
Page123
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
2013
5,350
2,490
111
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
2022
15,350
4,684
145
3,813
Taxes Included in Unrestricted Intergovernmental Revenues
Fiscal
Sales
State Revenue
Local Option
Year
Tax
Sharing
Gas Tax
Total
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
2022
3,333
1,930
574
5,837
Total
10,074
11,925
12,598
15,053
15,618
16,972
18,918
20,447
22,325
23,992
Page124
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
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%
2022
4,396,812
258,785
937,103
3,718,493
4.2061
4,655,597
79.87%
Source: Lake County Property Appraisers Office
* Information on breakdown of residential and commercial property is not available.
Page125
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
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
2022
4.2061
5.0529
0.0918
0.4629
6.5920
-
0.3229
0.2189
16.9475
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
Page126
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
2022
2013
Percentage of
Percentage of
Taxable
Total Taxable
Taxable
Total Taxable
Assessed
Assessed
Assessed
Assessed
Taxvaver
Value
Rank
Value
Value
Rank
Value
Vista at Lost Lake TIC I LLC
58,304
1
1.70%
BR Citrus Tower LLC
46,171
2
1.34%
Advenir at Castle Hill LLC
44,860
3
1.31 %
John P. Adams & Ann D. Adams
Family LP
40,419
4
1.18%
24,625
1
1.43%
US 27-Clermont LLC
38,514
5
1.12%
South Lake Hospital, Inc.
38,506
6
1.12%
11,861
7
0.69%
Palisades of Clermont LLC
33,131
7
0.96%
Westdale Sundance LTD
29,494
8
0.86%
16,372
3
0.95%
Clermont LL LLC
23,655
9
0.69%
Weingarten 1-4 Clermont Landing
21,064
10
0.61%
12,370
5
0.72%
Fountains at Clermont LLC
18,251
2
1.06%
MRP Lost Lake LLC
15,844
4
0.92%
Village at East Lake
12,296
6
0.71 %
Progress Energy Florida, Inc
10,022
9
0.58%
Wal-Mart Stores East LP
10,065
8
0.58%
Target Corporation
9,198
10
0.53%
TOTAL
$ 374,118
10.89%
$ 140,904
8.16%
Source: Lake County Property Appraiser
Page127
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
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%
2022
15,640
14,827
94.8%
3
14,830
94.8%
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.
Page128
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Business -Type
Fiscal
Governmental Activities
Activities
Year
Total
Percentage
Ended
Revenue Capital
Notes
Revenue
Notes
Outstanding
of Personal
Sept
Bonds Leases
Payable
Bonds
Payable
Debt
Income'
Per Capita'
2013
$ $
$ 2,612
$ 14,979
$
$ 17,591
$ 582
2014
-
8,041
14,361
22,402
2.74%
706
2015
-
7,157
13,728
20,885
2.45%
646
2016
-
11,509
13,075
24,584
2.40%
709
2017
-
34,102
12,403
6,329
52,834
4.87%
1,476
2018
-
33,123
12,268
6,329
51,720
4.22%
1,329
2019
- 838
31,109
11,467
5,980
49,394
3.76%
1,212
2020
- 754
29,045
10,634
5,621
46,054
3.45%
1,040
2021
- 666
26,930
9,779
5,253
42,628
3.03%
954
2022
- 577
24,766
8,800
4,875
39,018
2.30%
852
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 136 for personal income and population data.
Page129
City of Clermont, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2022
(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
$ 107,408
14.09%
$ 15,134
Lake County School District
148,494
12.65%
$ 18,784
Subtotal, overlapping debt
33,918
City of Clermont, direct debt
25,343
100.00%
25,343
Total direct and overlapping debt
$ 93,179
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.
Page130
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
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
**
**
**
2022
4,684,059
1,414,867
3,333,085
9,432,011
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
Page 131
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
2022
4,684,059
1,414,867
6,098,926
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
409,469
67,263
12.79
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.
Page132
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
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
2022
5,337,140
342,365
76,283
12.75
Note: Details regarding the city's outstanding debt can be found in the notes
to the financial statements.
Page133
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
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
2022
5,337,140
2,068,218
1,879,538
4,019,607
13,304,503
1,791,000
631,213
5.49
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Page134
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
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
2022
16,940,418
11,846,046
5,094,372
879,000
222,280
4.63
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.
Page135
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
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%
2022
45,812
1,699,579
37,099
42.4
14.1
9,668
2.6%
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
Page136
Emplover
Total City Employment
South Lake Hospital, Inc.
Publix Supermarkets
Lake County Sheriffs Office
Lake County School System
City of Clermont
Walmart
Lowe's
Target Corporation
Senningers
Clermont Health & Rehab
Crotthall Laundry Services
Winn Dixie
Senninger Irrigation
Clermont Health & Rehab Ctr
TOTAL
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
2022
Number
Percentage of
of
Total City
Employees
Rank
Employment
20,189
1,784
1
8.84%
991
2
4.91 %
762
3
3.77%
714
4
3.54%
418
5
2.07%
392
6
1.94%
356
7
1.76%
334
8
1.65%
182
9
0.90%
180
10
0.89%
6,113 30.28%
2013
Number
Percentage of
of
Total City
Employees
Rank
Employment
23,532
1,045
1
4.44%
610
2
2.59%
340
4
1.44%
253
7
1.08%
316
5
1.34%
310
6
1.32%
520
3
2.21 %
207
8
0.88%
190
9
0.81 %
175
10
0.74%
3,966 16.85%
Source: Various employers in city limits & Bureau of Labor Statistics (BLS) of the U.S. Department of Labor
Page137
Emplover
Kings Ridge South
SLMH
Kings Ridge North
Orlando VP LLC
Vista at Lost Lake TIC I LLC
Clermont TT, LLC
Sandpiper Orlando Clermont, LLC
Carwash Headquarters, Inc DBA Mister
Senniger Irrigation
Taylor Morrison
City of Clermont
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
2022
2013
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
75,111
1
1.98%
242,120
1
10.12%
30,481
2
0.80%
33,259
3
1.39%
26,544
3
0.70%
22,866
4
0.60%
12,915
5
0.34%
13,532
6
0.57%
11,907
6
0.31 %
10,971
7
0.29%
10,727
8
0.28%
9,584
9
0.25%
54,485
10
1.44%
51,140
2
2.14%
26,315
4
1.10%
17,026
5
0.71 %
13,267
7
0.55%
11,820
8
0.49%
11,646
9
0.49%
9,287
10
0.39%
265,591
7.01 %
429,412
17.95%
The City of Clermont had a total metered water flow of approximately 3,789,411 gallons for the
12-month period ending September 30, 2022
Page138
Emplover
Orlando VP LLC
Town of Oakland
SLMH
Vista at Lost Lake West
Clermont TT LLC
Carwash Headquarters
Senniger Irrigation
Emerald Lakes of Clermont
Vista at Lost Lake East
Pinecrest Lakes Academy
Lake County Schools
Westminster Comm Care Service
Villages at East Lake
City of Clermont
Mister Car Wash
Oak Ridge Apartments
Liberty Value Place
TOTAL
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
2022
2013
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
33,837
1
2.90%
33,284
2
2.86%
30,481
3
2.62%
33,262
1
2.46%
10,315
4
0.89%
11,907
5
1.02%
10,727
6
0.92%
9,584
7
0.82%
9,017
8
0.77%
7,496
6
0.56%
8,675
9
0.74%
13,532
4
1.00%
8,342
10
0.72%
17,715
2
1.31%
16,191
3
11,646
5
0.86%
7,285
7
0.54%
5,445
8
0.40%
4,093
9
0.30%
3,851
10
0.29%
166,169
14.26%
120,516
8.93%
The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,164,883
gallons for the 12-month period ending September 30, 2022
Page139
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Full-time Equivalent Employees as of September 30
Function
2013
2014
2015
2016
General Government
26.66
31.56
36.00
36.00
Public Safety:
Police
Sworn personnel
57.00
61.00
61.00
66.00
Non sworn personnel
6.00
6.00
6.00
6.00
Fire
Firefighters
47.80
56.80
56.80
59.80
Other personnel
2.00
5.20
4.20
4.20
Building Services
0.60
6.00
6.00
7.00
Physical Environment
4.95
4.70
7.45
8.70
Transportation
14.65
12.95
12.85
12.60
Human Services
0.00
0.00
0.00
0.00
Culture & Recreation
21.10
27.25
33.35
35.35
Water
29.66
30.61
29.35
29.65
Sewer
23.78
23.88
24.15
26.45
Stormwater
6.72
6.87
6.65
7.75
Sanitation
17.08
17.18
18.20
18.50
Total
258.00
290.00
302.00
318.00
Source: City of Clermont Finance Department
Page 140
Full-time Equivalent Employees as of September 30
2017 2018 2019 2020 2021 2022
38.70 41.45 49.50 48.90 49.90 54.06
70.00
79.00
81.00
86.00
88.00
92.00
6.00
7.00
7.00
7.00
8.00
9.00
66.50
74.20
81.00
81.00
81.00
82.00
6.50
8.80
8.00
8.00
8.00
7.00
11.30
11.55
12.30
13.55
14.55
13.78
10.70
10.70
10.70
9.65
9.65
9.65
14.60
16.60
11.9
11.73
11.73
11.73
0.00
0.00
0.00
0.00
0.00
0.00
39.35
40.60
37.50
39.22
39.22
39.22
29.15
30.45
30.55
32.70
36.70
35.63
26.95
31.25
31.40
32.50
34.50
35.13
10.25
10.10
13.85
13.95
13.95
14.98
21.00
21.30
21.30
20.80
20.80
20.82
351.00
383.00
396.00
405.00
416.00
425.00
Page141
City of Clermont, Florida
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
Function
2013
2014
2015
2016
2017
General Government
Municipal boundary (square miles)
14.95
15.18
16.65
16.78
16.78
Business Tax Receipts issued
2,483
1,955
1,701
1,639
1,633
A/P Checks issued
2,288
3,529
2,747
3,276
3,651
Commercial construction (units)
20
15
16
20
14
- value in thousands
34,268
17,288
8,625
42,241
13,302
Residential construction (units)
327
572
323
740
433
- value in thousands
53,055
62,117
55,178
103,423
87,873
Multi Family construction (units)
-
-
-
-
-
- value in thousands
-
-
-
-
-
Public Safety:
Police
Auto accidents
1,402
1,357
1,573
1,909
1,909
Physical arrests
886
631
652
589
593
911 calls received
6,352
6,643
7,618
6,397
6,809
Evidence processed (pieces)
2,930
2,384
989
674
1,165
Parking violations
252
379
144
181
385
Traffic violations
7,225
4,623
6,879
7,421
6,713
Fire
Volunteer firefighters
-
-
-
-
-
Fire inspections completed
1,240
3,766
3,813
4,468
2,586
Emergency calls answered
3,414
4,127
4,202
6,001
6,828
Non -emergency calls answered
447
987
523
806
925
Water
Residential accounts
19,399
19,670
13,242 •
13,561
14,339
Commercial accounts
1,232
1,234
1,211
1,220
1,235
Annual water usage
(thousands of gallons)
2,392,022
2,406,183
2,521,397
2,572,852
2,743,657
Sewer
Residential accounts
13,407
13,718
13,578
13,860
14,619
Commercial accounts
1,194
1,055
1,074
1,091
1,106
Sources: Various government departments.
• Decrease in accounts due to software conversion combining multi -metered services
Page 142
Fiscal Year
2018
2019
2020
2021
2022
17.12
19.00
19.10
19.20
19.34
1,623
1,585
1,572
1,968
1,752
3,872
3,859
3,543
3,846
3,905
20
15
10
16
26
42,042
30,862
13,695
52,737
61,307
387
377
428
591
673
104,394
87,927
92,541
110,912
134,829
-
-
-
-
301
-
-
-
-
31,945
1,802
2,082
1,780
1,673
2,209
569
663
632
590
548
7,943
9,185
8,703
9,880
9,124
1,040
1,821
1,331
1,787
2,107
147
101
319
403
522
4,676
4,790
4,340
3,394
3,576
2,203
2,493
2,445
3,112
2,154
5,689
5,367
6,199
6,549
6,977
989
1,493
814
1,593
1,847
14,805
15,311
15,882
16,283
16,919
1,498
1,283
1,283
1,344
1,353
2,687,665
2,816,071
3,090,626
3,568,993
3,789,411
15,198
15,669
16,330
17,670
19,160
1,107
1,126
1,135
1,342
1,425
Page 143
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
Pickleball 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
2013 2014 2015
2016 2017
1
1
1
1
1
55
57
79
95
98
4
4
3
4
5
3
3
3
4
4
2,120
2,146
2,200
2,646
2,646
8
8
12
6
7
5
5
3
6
6
4
4
3
1
6
173.91
191.52
202.38
210.00
210.60
3,103
3,127
3,158
3,160
1,309
23
23
23
23
24
349.5
349.5
378.0
443.9
443.9
5.7
5.7
5.7
7.5
7.5
9
9
9
9
9
5
5
10
11
11
1
1
1
1
1
243.14
222.75
230.28
229.44
297.00
160.42
161.25
167.60
168.57
220.00
109.05
133.70
48.22
47.63
47.56
Page144
Fiscal Year
2018
2019
2020
2021
2022
1
1
1
1
1
104
106
107
106
116
5
5
5
5
5
4
4
4
4
4
2,646
2,456
2,456
2,456
2,475
9
9
9
9
9
7
7
7
7
7
6
7
7
9
9
210.60
210.60
210.60
210.60
202.00
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
8.0
8.0
8.0
8.0
8.0
9
9
9
9
9
-
-
-
-
6
9
9
9
9
9
1
1
1
1
1
297.81
331.86
334.98
354.16
359.18
224.00
236.34
238.58
254.61
354.95
48.36
50.38
50.38
51.46
72.89
Page 145
n
Page 146
OTHER REPORTS
Page 147
n
Page 148
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, the business -type activities, each major fund, and the aggregate
remaining fund information of the City of Clermont, Florida (the "City"), as of and for the year ended September 30, 2022, 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 1, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City'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 the
City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
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 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 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 22-01 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 cash, 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
Page 149
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City'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.
ML 22-02- 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
Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the findings
identified in our audit and described 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 it.
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 1, 2024
Page150
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
Opinion on Each Major Federal Program
We have audited the City of Clermont, Florida's (the City) compliance with the types of compliance requirements identified as
subject to audit 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, 2022. 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.
In our opinion, the City complied, in all material respects, with the 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, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America
(GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States (Government Auditing Standards); and 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's
Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the
City's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and
maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and
provisions of contracts or grant agreements applicable to the City's federal programs.
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements
referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit
conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial
likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on
compliance about the City's compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit
procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the
City's compliance with the compliance requirements referred to above and performing such other procedures as we
considered necessary in the circumstances.
the trusted partner
Page 151
• Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit
procedures that are appropriate in the circumstances 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 the
City's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified
during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for
the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that
might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our
audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as
defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were
not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, no such opinion is expressed.
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.
1,_
Orlando, Florida
April 1, 2024
Page152
City of Clermont, Florida
Schedule of Expenditures of Federal Awards
Year Ended September 30, 2022
Federal Grantor
Assistance
Pass -Through Grantor
Listing
Agency or Pass -through
Grantor program title
Number
Entity Grant Number
Expenditures
U.S. Department of Justice (DOJ)
Equitable Sharing
16.922
56,546
Bulletproof Vest Partnership
16.607
5,490
State of Florida, Department of Law Enforcement
Byrne Memorial Justice Assistance Grants Program
16.738
2021-JAGC-LAKE-4-3B-057
7,215
Byrne Memorial Justice Assistance Grants Program
16.738
2022-JAGD-LAKE-1-4B-027
5,653
State of Florida, Office of the Attorney General
Victims of Crime Act
16.575
VOCA-2021-CLERMONT
1,117
Lake County
Mobile Crisis Response Officer
16.745
BJA-2018-13605/13907
2,758
Total U.S. Department of Justice (DOJ)
78,779
U.S. Department of Treasury
Coronavirus State and Local Fiscal Recovery Funds
21.027
12,016,535
Total Department of Treasury
12,016,535
Executive Office of the President -Office of National Drug Control Policy
Seminole County Sheriff Office
High Intensity Drug Trafficking Areas
95.001
G18CF0008A
19,645
Total Executive Office of the President -Office of National Drug Control Policy
19,645
U.S. Department of Homeland Security (DHS)
State of Florida, Department of Emergency Management
Assistance to Firefighters Grant
97.077
EMW-2020-FP-00259
4,381
Assistance to Firefighters Grant
97.077
EMW-2020-FG-15036
71,404
Total U.S. Department of Homeland Security (DHS)
75,785
Total Expenditures of Federal Awards
$ 12,190,744
Denotes a major program
See accompanying Notes to Schedule of Expenditures of Federal Awards.
Page153
City of Clermont, Florida
Notes to Schedule of Expenditures of Federal Awards
Year Ended September 30, 2022
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, 2022. 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, 2022, even if grant or loan was received subsequent to that date.
Federal expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of
expenditures are not allowed or are limited as to reimbursement. 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.
Page154
City of Clermont, Florida
Schedule of Findings and Questioned Costs
Year Ended September 30, 2022
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
Assistance Listing No. Coronavirus State and Local Fiscal Recovery
21.027 Funds
$750,000
X Yes
None
None
No
There were no audit findings for the year ended
September 30, 2021.
Page155
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,
2022, and have issued our report thereon dated April 1, 2024.
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 1, 2024, 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 # 2020-21 FY Finding # 2019-20 FY Finding ##
ML 22-01 ML 21-01 ML 20-01
ML 22-02 ML 21-02 ML 20-02
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.
the trusted partner
Page 156
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.
Additional Matters
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 noted on finding
of noncompliance.
ML22-03 Investment Policy
During the audit, we noted that the required continuing education courses were not taken and properly documented by the
designated individual as required by the City's investment policy and Florida Statutes. We recommend that the City implement
procedures to ensure the proper continuing education courses are taken and documented each year as required by Florida Statutes.
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.
�I 1Y •
Orlando, Florida
April 1, 2024
Page157
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, 2022. 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, 2022, except for the noncompliance disclosed in management comment 22-03.
Orlando, Florida
April 1, 2024
the trusted partner
Page158