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City of Clermont, Florida
Table of Contents
Page
Introductory Section
Letter of Transmittal 3
Organization Chart 8
List of Elected and Appointed Officials 9
Financial Section
Independent Auditor's Report
13
Management's Discussion and Analysis
17
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
29
Statement of Activities
30
Fund -Financial Statements:
Balance Sheet - Governmental Funds
31
Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds
32
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
33
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
General Fund
34
Statement of Revenues, Expenditures, and 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
Statement of 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 Govemmental 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 -
Tree Replacement Special Revenue Fund
106
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Police Asset Forfeiture Special Revenue Fund
107
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
Debt Service Fund
108
Fiduciary Funds
Combining Statement of Fiduciary Net Position - Fiduciary Funds
110
Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds
111
Statistical Section
Financial Trends:
Net Position by Component
116
Changes in Net Position
118
Fund Balance - Governmental Funds
122
Changes in Fund Balances - Governmental Funds
124
Revenue Capacity:
Governmental Activities Tax Revenues by Source
126
Assessed Value and Estimated Actual Value of Taxable Property
127
Property Tax Rates - Direct and Overlapping Governments
128
Principal Property Taxpayers
129
Property Tax Levies and Collections
130
Debt Capacity:
Ratios of Outstanding Debt by Type
131
Direct and Overlapping Governmental Activities by Debt
132
Pledged -Revenue Coverage
133
Demographic and Economic Information:
Demographic and Economic Statistics
138
Principal Employers
139
Principal Water Customers
140
Principal Sewer Customers
141
City of Clermont, Florida
Table of Contents
Page
Operating Information:
Full-time Equivalent City Government Employees by Function 142
Operating Indicators by Function 144
Capital Asset Statistics by Function 146
Impact Fees Collected 148
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 151
Independent Auditor's Report on Compliance for Each Major Federal Program and State
Project and Report on Internal Control Over Compliance in Accordance with the Uniform
Guidance and Chapter 10.550, Rules of the Auditor General 153
Schedule of Expenditures of Federal Awards and State Financial Assistance 155
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 156
Schedule of Findings and Questioned Costs- Federal Programs and State Projects 157
Management Letter 158
Independent Auditor's Report on Compliance with the Requirements of Section 218.415, Florida
Statutes 160
INTRODUCTORY SECTION
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Page12
WONT
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Choice of Champions'
November 15, 2024
Honorable Mayor Tim Murry,
Council Members and Citizens of the City of Clermont, Florida
BRIAN M. BULTHUIS
CITY MANAGER
352-241-7358
BBulthuis@Clermontfl.org
Dear Mayor Murry, Council Members and the Citizens of the City of Clermont, Florida:
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Clermont,
Florida, for the fiscal year ended September 30, 2023. 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, 2023.
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, 2023 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, 2023 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 13
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
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Local Economy
The City of Clermont is essentially residential in character and its economy is centered in retail, real
estate, personal services and healthcare. During the last 5 years, Clermont's population has increased
by 6,706 residents or 16.5%. Clermont's economic factors for FY 2023 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
$8,871 or 27.5% over the last 5 years. The City's unemployment rate increased from 2.8% to 3.4% over
the last 5 years, yet 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 12.0% increase in taxable property values. Primarily due
to this increase in property values, Clermont has maintained a property tax-millage rate (5.0600) within
the bottom half 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 prepares a Five -Year Capital Plan as part of the annual budget process. The
Capital Plan is a multi -year prioritized schedule that identifies future capital outlay by the year it is
intended to be purchased or commenced, the amount to be spent per year, and the funding source.
Relevant Financial Policies
The City regularly reviews revenues and expenditures throughout the fiscal year. Quarterly budget
reports are prepared and presented to the City Council. The reports show budget -to -actual for the city's
top 10 revenues, total fund revenues, total fund expenditures, departmental expenditures and various
department performance indicators. Through this process, if actual revenues are expected to fall short of
the budgeted amount, expenditures are reduced to ensure that a shortage of funds or a significant use of
fund balance does not occur.
685 W. Montrose Street + Clermont, FL 34711 www.ClermontFL.gov
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Major Initiatives
The completion of several capital projects included in the award -winning Downtown Waterfront Master
Plan continues to be the major emphasis of the City. The Master Plan offers an exciting view of the future
of Clermont and how to protect the very charms that have drawn hundreds of thousands to this
internationally recognized city that is one of the nation's top places to live, as well as a training ground for
the world's elite athletes. The following capital projects are included in the Master Plan and are expected
to be completed within the next two years. The listed projects below are being funded primarily from
several grants and a loan. It is important to note that no General Fund reserves are being used to fund
the construction of these projects.
The Downtown Waterfront District area includes Montrose Street, Minneola Street and
Osceola Street between 7th and 8th streets. The proposed improvements consist of
streetscapes, landscaping, bathrooms, lighting, upgrades for event lighting and music, banners
and beautification. A focal point will be created at City Hall Park to anchor downtown visitors,
creating a destination and meeting point in the heart of downtown Clermont. In addition, the
city plans to demarcate the halfway point of the Coast -to -Coast Trail. Phase one of the project
was completed in 2021. Phase two of the project is under construction with expected
completion in 2024. Phase three design is also underway with construction starting in 2023.
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 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 has not submitted a report since that period.
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
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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 "ul'th s
City Manager
Scott E. Borror
Finance Director
685 W. Montrose Street Clermont, FL 34711 www.ClermontFL.gov
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Citizens of
Clermont
City Council
City
Attorney
City Manager
Economic
Development
Building
cl
Finance
re
Human
esourcE
Committees
Public
Information
Parks and
Recreation
Planning and
Development
Police
Public
Service
Information
Technology
Procuremen
k Services
City of Clermont, Florida
List of Elected and Appointed Officials
For the Fiscal Year Ended September 30, 2023
Elected Officials
Tim Murry
Mayor
Jim Purvis
Mayor Pro- Tem
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
Scott Borror
Interim Finance Director
Michael Gonzalez
Council Member
Michele Pines
Council Member
David Ezell
Fire Chief
Nadine Ohlinger
Human Resources Director
Wayne Fountain
Information Technology Director
Brian Forman
Parks and Recreation Director
Charles Broadway
Police Chief
Stoney Brunson
Public Works Director
Freddy Suarez
Purchasing Director
Page 19
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FINANCIAL SECTION
Page I11
Page112
I 1
McDirmit Davis
I MJ
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Clermont, Florida
1800 Pembrook Drive, Suite 170
Orlando, Florida 32810
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, 2023,
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, 2023, 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
Page113
• 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
83 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 and State Financial Assistance (the "Schedule"), as required by 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), 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 November 18, 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
November 18, 2024
Page114
MANAGEMENT'S DISCUSSION AND
ANALYSIS
Page115
Page116
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, 2023. 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, 2023 by $270,762,397 (net position). Of this amount, $51,539,132 (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 $20,455,794 (or 8%) during fiscal year 2023 primarily due to an increase in total
revenues. The most significant factor was the increase in property taxes, which changed from $15.3 million to $20.8 million.
This was primarily due to the increase in property values and a millage rate adjustment.
• At September 30, 2023, the City of Clermont's governmental funds reported combined ending fund balances of $54,086,541
an increase of $4,527,523 from the previous fiscal year. Of this amount $22,022,754 (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 $22,022,754, which represents
56% of total General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Clermont's basic financial statements. The City's
basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements,
and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a broad overview of the City of Clermont's financial
position, in a manner similar to a private -sector business. They include a Statement of Net Position and a Statement of Activities. These
statements appear on pages 29 and 30 of the report.
The Statement of Net Position presents information on all of the City's assets and liabilities and deferred inflows/outflows of resources,
with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether
the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Clermont that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of
their costs through user fees and charges (business -type activities). The governmental activities of the City of Clermont include general
government, public safety, physical environment, transportation, economic environment, and culture and recreation. The business -type
activities of the City of Clermont include water, sewer, sanitation, and stormwater utilities.
The government -wide financial statements include only the City of Clermont itself (known as the primary government) and one blended
component unit (The City of Clermont Community Redevelopment Trust Fund).
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities
or objectives. The City of Clermont, like other state and local governments, uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements. All of the funds of the City of Clermont can be divided into three categories: governmental funds,
proprietary funds and fiduciary funds.
Page117
City of Clermont, Florida
Management's Discussion and Analysis
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide
financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -
term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating the City's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government -wide
financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in
fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Clermont maintains thirteen 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 nine
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 -
111 of this report.
Page118
City of Clermont, Florida
Management's Discussion and Analysis
Government -Wide Financial Analysis
The following is a summary of the City's net position for governmental and business -type activities for the current year as compared to
the prior year. For more detail see the Statement of Net Position.
Net Position
Governmental Activities
Business -Type Activities
Total
2022.23
2021-22
2022.23
2021-22
2022.23
2021.22
Assets:
Current and other assets
$ 67,944,177 $
63,295,511
$ 70,464,789 $
68,008,090
$ 138,408,966 $
131,303,601
Capital assets
93,316,285
84,078,750
106,136,270
98,166,957
199,452,555
182,245,707
Total assets
161,260,462
147,374,261
176,601,059
166,175,047
337,861,521
313,549,308
Deferred Outflows of Resources:
Deferred outflow of pension and OPEB earnings
9,166,283
10,594,352
346,165
405,698
9,512,448
11,000,050
Deferred charge of refunding
-
-
564,794
645,480
564,794
645,480
Total deferred outflows of resources
9,166,283
10,594,352
910,959
1,051,178
10,077,242
11,645,530
Liabilities:
Long-term liabilities outstanding
42,328,345
40,351,634
16,990,747
17,966,773
59,319,092
58,318,407
Other liabilities
11,479,463
12,534,561
5,384,776
2,581,582
16,864,239
15,116,143
Total liabilities
53,807,808
52,886,195
22,375,523
20,548,355
76,183,331
73,434,550
Deferred Inflowof Resources:
Deferred inflow of pension and OPEB earnings
Net Position:
Net investment in capital assets
Restricted
Unrestricted
Total net position
965,423 1,403,154
70,283,583 58,736,145
22,152,813 18,690,598
23,217,118 26,252,521
$ 115,653,514 $ 103,679,264
27,612 50,531
96,286,430 86,666,673
30,500,439 30,272,922
28,322,014 29,687,744
$ 155,108,883 $ 146,627,339
993,035 1,453,685
166,570,013 145,402,818
52,653,252 48,963,520
51,539,132 55,940,265
$ 270,762,397 $ 250,306,603
The City's total net position at September 30, 2023 was $270,762,397.Of the City's total net position $166,570,013 (61.5%) 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, $52,653,252 (19.5%) represents resources that are subject to external restrictions
on how they may be used. The remaining balance of the City's total net position, $51,539,132 (19.0%) 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 $20,455,794 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 2022-23, including revenues and
expenses, with a comparison to the prior year. For more detail see the Statement of Activities.
Page119
City of Clermont, Florida
Management's Discussion and Analysis
Changes in Net Position
Governmental Activities
Business -Type Activities
Total
2022-23
2021-22
2022-23
2021-22
2022-23
2021-22
Revenues:
Program revenues -
Charges for services
$ 10,793,910
$ 10,068,644
$ 25,605,783
$ 23,305,913
$ 36,399,693
$ 33,374,557
Operating grants and contributions
5,088,676
14,583,447
-
-
5,088,676
14,583,447
Capital grants and contributions
1,534,504
23,375
7,282,211
6,312,708
8,816,715
6,336,083
General revenues -
PropertyTaxes
20,882,299
15,349,735
-
-
20,882,299
15,349,735
Business Taxes
156,163
144,528
156,163
144,528
Franchise Fees
4,535,983
3,812,938
4,535,983
3,812,938
UtilityTaxes
5,353,571
4,684,059
5,353,571
4,684,059
Intergovernmental
12,711,481
12,179,646
12,711,481
12,179,646
Investment income and miscellaneous
1,828,423
290,322
1,751,850
(471,841)
3,580,273
(181,519)
Gain on sale of capital assets
93,710
42,372
10
775
93,720
43,147
Total revenues
62,978,720
61,179,066
34,639,854
29,147,555
97,618,574
90,326,621
Expenses:
General government
6,475,508
5,322,105
-
-
6,475,508
5,322,105
Public safety
32,141,074
28,925,227
32,141,074
28,925,227
Physical environment
3,603,315
3,772,739
3,603,315
3,772,739
Transportation
2,335,156
1,927,707
2,335,156
1,927,707
Economic environment
1,279,364
1,337,164
1,279,364
1,337,164
Culture and recreation
3,987,873
4,227,083
3,987,873
4,227,083
Interest on long-term debt
588,228
635,273
588,228
635,273
Water
-
-
9,783,665
9,107,744
9,783,665
9,107,744
Sewer
10,491,389
9,175,803
10,491,389
9,175,803
Sanitation
3,925,453
3,993,702
3,925,453
3,993,702
Stormwater
2,551,755
2,443,406
2,551,755
2,443,406
Total expenses
50,410,518
46,147,298
26,752,262
24,720,655
77,162,780
70,867,953
Increase (Decrease) in Net Position
Before Transfers
12,568,202
15,031,768
7,887,592
4,426,900
20,455,794
19,458,668
Transfers
(593,952)
294,404
593,952
(294,404)
-
-
Increase in Net Position
11,974,250
15,326,172
8,481,544
4,132,496
20,455,794
19,458,668
Net Position - Beginning
103,679,264
88,353,092
146,627,339
142,494,843
250,306,603
230,847,935
Net Position -Ending
$ 115,653,514
$ 103,679,264
$ 155,108,883
$ 146,627,339
$ 270,762,397
$ 250,306,603
Governmental Activities
Governmental activities increased the City of Clermont's net position by $11,974,250. The increase in governmental activity net
position is due to revenues increasing at a rate faster than expenses. While revenues increased 2.9% to $62.98 million, expenses
increased at a 9.2% rate to $50.4 million.
Page120
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. For instance, the Total Taxable Assessed Value of property increased 12.0% or
$527 million in FY23. Combined with a millage rate adjustment this led to an increase in receipts of approximately $5.5 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.
$35,000,000
$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
Generalgovernment Pubic safety Transportation/pub,,,c,tr,&recreation Phy5icai environment ks aoqst on longterm gebt
other
The following pie chart illustrates the composition of governmental activities revenue and its percent in relation to total governmental
activities revenues.
Revenues by Source - Governmental Activities
■ Intergovernmental ■ Charges for services Operating grants and contributions
■ Investment income and miscellaneous ■ Other taxes Capital grants and contributions
Property taxes
Property taxes, 33.2
Capital grants and
contributions, 2.4%
Other taxes, 16.(
Investment income and
miscellaneous, 3.1%
Intergovernmental,
20.2
harges for services,
17.1%
Operating grants and
contributions, 8.1%
Page 121
City of Clermont, Florida
Management's Discussion and Analysis
Business -Type Activities
Business -type activities increased the City of Clermont's net position by $8,481,544. This change is primarily due to a combination of
rate adjustments to support capital projects and 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
$16,000,000
$14, 000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
99
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 Services
73.9%
Capital Grants and
:ontributions, 21.0%
Investment income and
miscellaneous , 5.1%
Operating grants and
contributions, 0.0%
Page122
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, 2023, the City of Clermont's governmental funds reported combined ending fund balances of $54,086,541 an
increase of $4,527,523 in comparison with the prior year. This increase is primarily due to additional cash balances resulting from
the ARPA distributions received but not yet spent during FY23, and an increase in ad valorem revenue. Of the governmental funds
combined ending fund balances, $22,022,754 (41 %) represents unassigned fund balance, which is available for spending at the
City's discretion. An additional $8,064,002 (assigned fund balance) has been set aside for planned master plan project
expenditures. Restricted fund balances totaling over $22.1 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
($1,860,474) 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, 2023, the fund balance in the General
Fund was $25,541,561 an increase of $5,453,239 primarily from an increase in revenues; property taxes, franchise fees, licenses
and permits, and charges for services all surpassed the 2022 amounts. The change in fund balance was more than the anticipated
amount of the original budget by $5,468,247 and $5,606,223 more than the revised budget. Revenues were more than budgeted
by $2,719,268, 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, $22,022,754 (86.2%) 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 55.9% of total General Fund expenditures, while total fund balance represents 64.8% of that same amount.
The City has a Capital Projects Fund that is considered a major fund under criteria set forth by GASB Statement No. 34. This fund
is used to account for the acquisition of capital assets or construction of major capital projects not being financed by proprietary
funds. Funds have been accumulated so projects can be completed on a pay-as-you-go basis. The fund balance in this fund
decreased by $4,780,942 in fiscal year 2023, 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 $439,628
in fiscal year 2023 primarily due to an increase of $800,000 in sales tax collections.
The remainder of the change of $3,415,598 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 $2,799,186 in fiscal year 2023 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.
Page123
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, 2023, the City of Clermont's Water Fund reported total net position of
$55,058,996, an increase of $2,878,747 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, 2023, the City of Clermont's Sewer Fund reported total net position of $80,140,784, an increase of $4,279,967 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, 2023, the
City of Clermont's Sanitation Fund reported total net position of $7,133,389, an increase of $430,700 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, 2023, the City of Clermont's Stormwater Fund
reported total net position of $12,497,217, an increase of $482,320 in comparison with the prior year. This increase is primarily
due to capital contributions and internal transfers to offset capital expenditures.
General Fund Budgetary Highlights
• During the year there was a $325,958 net increase in appropriations between the original and final amended budget,
representing a 0.8% change.
General Fund budgeted revenues increased by $2,666,618 between the original and final budget. Significant components of the
increase were related to higher than originally anticipated intergovernmental revenues, investment income, and franchise fees.
Considering the above noted increases in General Fund budgeted appropriations, actual expenditures were less than budgeted
by $2,225,483.
Page 124
City of Clermont, Florida
Management's Discussion and Analysis
Capital Assets
The following is a summary of the City of Clermont's capital assets, net of depreciation for governmental and business -type
activities for the current year with a comparison to the prior year. Additional information on the City of Clermont's capital assets
can be found in Note 6 of this report.
Capital Assets
(net of depreciation)
Governmental Activities
Business -Type Activities
Total
2022.23
2021.22
2022.23
2021.22
2022.23
2021.22
Land
$ 26,601,001 $
25,851,030
$ 1,511,807 $
1,511,807
$ 28,112,808 $
27,362,837
Buildings
16,735,437
17,325,719
796,624
817,003
17,532,061
18,142,722
Infrastructure
22,353,930
21,994,814
73,855,477
78,308,609
96,209,407
100,303,423
Machineryand Equipment
7,060,388
6,217,412
4,942,130
5,231,558
12,002,518
11,448,970
Intangibles
83,549
57,548
869,181
1,032,724
952,730
1,090,272
Construction in Progress
20,481,980
12,632,227
24,161,051
11,265,256
44,643,031
23,897,483
Total
$ 93,316,285 $
84,078,750
$ 106,136,270 $
98,166,957
$ 199,452,555 $
182,245,707
The City of Clermont's investment in capital assets for its governmental and business -type activities as of September 30, 2023,
amounts to $199,452,555 (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 $17,206,818. 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 86.8% 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
2022-23
2021-22
2022-23
2021-22
2022-23
2021-22
Revenue bonds payable
$ -
$ -
$ 8,000,000
$ 8,900,000
$ 8,000,000 $
8,900,000
Notes payable
22,547,685
24,766,095
4,486,698
4,874,692
27,034,383
29,640,787
Financed purchases
485,017
576,510
-
-
485,017
576,510
Total
$ 23,032,702
$ 25,342,605
$ 12,486,698
$ 13,774,692
$ 35,519,400 $
39,117,297
As of September 30, 2023, total outstanding debt was $35,519,400, which includes both revenue bonds payable and notes
payable. The outstanding debt amount decreased $3,597,897 over the previous year.
Page125
City of Clermont, Florida
Management's Discussion and Analysis
Next Year's Budgets and Rates
The fiscal year 2024 budget was approved with the use of $297,628 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 second consecutive year
adopting a millage 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 2024 in the amount of 13.8%.
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 2024 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.
Page126
BASIC FINANCIAL STATEMENTS
Page127
Page128
City of Clermont, Florida
Statement of Net Position
September 30, 2023
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
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 satety
Culture and recreation
Intrastructure
Uebt service
Building services
I ransportation
Cemetery
Unrestricted
Total net position
Primary Government
Governmental
Business -Type
Activities
Activities
Total
$ 41,212,424
$ 28,153,377
$ 69,365,801
18,938,897
20,756,476
39,695,373
1,287,547
796,939
2,084,486
30,095
23,701
53,796
1,770,543
-
1,770,543
(345,624)
345,624
-
1,830,395
223,607
2,054,002
-
3,008,546
3,008,546
3,174,316
17,064,299
20,238,615
45,584
92,220
137,804
47,082,981
25,672,858
72,755,839
46,233,304
80,463,412
126,696,716
161,260,462
176,601,059
337,861,521
8,006,076
-
8,006,076
1,160,207
346,165
1,506,372
-
564,794
564,794
9,166,283
910,959
10,077,242
6,890,986
5,384,776
12,275,762
4,588,477
-
4,588,477
2,560,244
1,371,775
3,932,019
39,768,101
15,618,972
55,387,073
53,807,808
22,375,523
76,183,331
872,876
-
872,876
92,547
27,612
120,159
965,423
27,612
993,035
70,283,583
96,286,430
166,570,013
-
30,500,439
30,500,439
614,611
-
614,611
4,813,211
4,813,211
6,315,198
6,315,198
4,477,621
4,477,621
1,897,822
1,897,822
2,601,374
2,601,374
24,742
24,742
1,408,234
-
1,408,234
23,217,118
28,322,014
51,539,132
$ 115,653,514
$ 155,108,883
$ 270,762,397
The accompanying Notes to Financial Statements are an integral part of this statement. Page 129
City of Clermont, Florida
Statement of Activities
Year Ended September 30, 2023
Net(Expense)Revenue and
Changes in Net Position
Program Revenue Primary Government
Charges for
Operating Grants
Capital Grants and
Governmental
Business -Type
Fun ctions/Proarams:
Expenses Services
and Contributions
Contributions
Activities
Activities
Total
Governmental Activities:
General government
$ 6,475,508 $ 4,537,641
$ 2,877,463
$
$ 939,596
$ $
939,596
Public safety
32,141,074 2,805,285
1,461,645
(27,874,144)
(27,874,144)
Physical environment
3,603,315 -
-
1,486,554
(2,116,761)
(2,116,761)
Transportation/public works
2,335,156
599,568
-
(1,735,588)
(1,735,588)
Economic environment
1,279,364 -
-
-
(1,279,364)
(1,279,364)
Culture and recreation
3,987,873 3,450,984
150,000
47,950
(338,939)
(338,939)
Interest on long-term debt
588,228 -
-
-
(588,228)
(588,228)
Total governmental activities
50,410,518 10,793,910
5,088,676
1,534,504
(32,993,428)
(32,993,428)
Business -Type Activities
Water
9,783,665 10,068,465
-
2,062,735
2,347,535
2,347,535
Sewer
10,491,389 9,320,663
5,189,476
4,018,750
4,018,750
Sanitation
3,925,453 4,267,856
-
342,403
342,403
Stormwater
2,551,755 1,948,799
30,000
(572,956)
(572,956)
Total business -type activities
26,752,262 25,605,783
-
7,282,211
6,135,732
6,135,732
Total primary government
$ 77,162,780 $ 36,399,693
$ 5,088,676
$ 8,816,715
(32,993,428)
6,135,732
(26,857,696)
General Revenues:
Property taxes
20,882,299
-
20,882,299
Business taxes
156,163
156,163
Franchise fees
4,535,983
4,535,983
Utility taxes
5,353,571
5,353,571
Intergovernmental - unrestricted
12,711,481
-
12,711,481
Unrestricted investment earnings
1,198,727
1,751,850
2,950,577
Miscellaneous
629,696
-
629,696
Gain on sale of capital assets
93,710
10
93,720
Transfers
(593,952)
593,952
-
Total general revenues and transfers
44,967,678
2,345,812
47,313,490
Change in net position
11,974,250
8,481,544
20,455,794
Net Position - beginning
103,679,264
146,627,339
250,306,603
Net Position - ending
$ 115,653,514
$ 155,108,883 $
270,762,397
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 130
City of Clermont, Florida
Balance Sheet
Governmental Funds
September 30, 2023
Infrastructure
Other
Total
Capital
Special
ARPA Special
Governmental
Governmental
General
Projects
Revenue
Revenue Fund
Funds
Funds
Assets:
Cash and cash equivalents
$ 13,896,571
$ 4,040,764
$ 3,591,391
$ 4,464,200
$ 12,265,559
$ 38,258,485
Investments
11,649,928
-
750,241
-
6,124,228
18,524,397
Receivables, net
1,313,144
1,848
10,779
1,325,771
Inventories, at cost
30,095
-
-
30,095
Due from other governments
1,443,926
326,617
1,770,543
Due from other funds
-
-
-
Prepaid costs
1,816,878
-
13,501
1,830,379
Restricted Investments
-
3,174,316
-
-
-
3,174,316
Total assets
$ 30,150,542
$ 7,215,080
$ 4,670,097
$ 4,464,200
$ 18,414,067
$ 64,913,986
Liabilities:
Accounts payable
$ 3,704,997
$ 798,170
$ 192,476
$ -
$ 177,787
$ 4,873,430
Due to other funds
67,127
-
-
-
67,127
Accrued liabilities
626,685
22,130
648,815
Deposits
-
-
563,701
563,701
Unearned revenue
117,618
-
-
4,464,200
-
4,581,818
Total liabilities
4,516,427
798,170
192,476
4,464,200
763,618
10,734,891
Deferred Inflows of Resources:
Unavailable revenue - liens, forfeitures and rents
92,554
-
-
-
-
92,554
Total deferred inflows of resources
92,554
-
92,554
Fund Balances:
Nonspendable
1,846,973
-
13,501
1,860,474
Restricted
24,742
-
4,477,621
17,636,948
22,139,311
Assigned
1,647,092
6,416,910
-
-
8,064,002
Unassigned
22,022,754
-
-
-
22,022,754
Total fund balances
25,541,561
6,416,910
4,477,621
17,650,449
54,086,541
Total liabilities, deferred inflows of
resources, and fund balances
$ 30,150,542
$ 7,215,080
$ 4,670,097
$ 4,464,200
$ 18,414,067
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. 93,316,285
Accrued interest payable is not due in the current period and, therefore, is not reported in the funds. (196,537)
Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. 92,554
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. 8,200,860
Net pension assets are not current financial resources and, therefore, are not reported in the funds. (4,050,169)
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. 2,482,156
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. (38,278,176)
Net Position of Governmental Activities in the Statement of Net Position. $ 115,653,514
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 131
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2023
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 Special
Other
Total
Capital
Special
Revenue
Governmental
Governmental
General
Projects
Revenue
Fund
Funds
Funds
$ 25,738,772 $
$
$
$ 653,261
$ 26,392,033
4,535,983
-
4,535,983
606,300
1,772,557
2,378,857
9,417,764
5,538,802
2,875,340
16,201
17,848,107
3,205,083
-
-
348,733
3,553,816
153,585
-
153,585
-
-
3,993,627
3,993,627
639,513
163,551
51,879
316,442
1,171,385
1,333,705
-
-
-
7,502
1,341,207
45,630,705
163,551
5,590,681
2,875,340
7,108,323
61,368,600
5,862,699
98,629
743 -
5,962,071
25,110,613
1,298,066
- 2,452,496
28,861,175
2,722,345
192,047
401,385
3,315,777
1,578,459
600,767
-
2,179,226
128,946
-
559,010
687,956
4,000,932
828,254
143,012
4,972,198
-
91,493
2,218,410
2,309,903
8,581
11,277
588,178
608,036
6,328,369
6,328,369
-
1,116,124 -
- -
1,116,124
39,412,575
7,444,493 3,120,533
743 6,362,491
56,340,835
6,218,130
(7,280,942)
2,470,148 2,874,597
2,280,645
2,500,000
- -
(3,139,246)
-
(2,030,520) (2,874,597)
93,710
-
(764,891)
2,500,000
(2,030,520) (2,874,597)
5,453,239
(4,780,942)
439,628
20,088,322
11,197,852
4,037,993
$ 25,541,561
$ 6,416,910
$ 4,477,621 $
745,832 5,027,765
3,254,118
8,034,763
(584,352)
(8,628,715)
-
93,710
2,669,766
(500,242)
3,415,598
4,527,523
14, 234, 851
49, 559, 018
$ 17,650,449
$ 54,086,541
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 132
City of Clermont, Florida
Reconcliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
Year Ended September 30, 2023
Net Change in Fund Balances - total governmental funds: $ 4,527,523
Amounts reported for Governmental Activities in the Statement of Activities are different because:
uovernmentai Tunas report outiays Tor capital assets as expendtures oecause sucn outiays
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. 7,811,009
The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-
ins and disposals) is to decrease net position. (60,028)
Contributions of capital assets are not reported as revenues in the governmental funds. 1,486,554
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. 2,514
Cash pension contributions reported in the funds were more than the calculated pension
expense on the statement of activities, and therefore increased net position. (3,226,689)
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
repayments exceeded proceeds.
2,309,903
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. (2,030,455)
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. 1,153,919
unange in ivet rosiuon oT uovernmentai Activities $ 11,974,250
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 133
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original
Final
Revenues:
Taxes
$ 25,008,079
$ 25,392,769
$ 25,738,772 $
346,003
Franchise fees
3,420,000
4,091,351
4,535,983
444,632
Licenses and permits
456,000
606,300
606,300
-
Intergovernmental revenues
7,603,550
8,246,308
9,417,764
1,171,456
Charges for services
2,885,245
3,174,762
3,205,083
30,321
Fines and forfeitures
102,500
67,768
153,585
85,817
Investment earnings (loss)
40,000
15,000
639,513
624,513
Miscellaneous
729,445
1,317,179
1,333,705
16,526
Total revenues
40,244,819
42,911,437
45,630,705
2,719,268
Expenditures:
Current:
General government:
City council
50,637
58,436
55,655
2,781
City clerk
432,483
490,574
466,127
24,447
City manager
869,129
860,244
810,939
49,305
Finance
1,340,944
1,348,981
1,287,387
61,594
Legal services
147,300
165,000
139,284
25,716
Planning & zoning
934,937
1,069,325
1,030,834
38,491
Information technology
1,020,020
999,112
918,473
80,639
Human resources
592,488
524,201
510,086
14,115
Purchasing
363,608
400,308
396,547
3,761
Other general government
255,565
262,628
247,367
15,261
6,007,111
6,178,809
5,862,699
316,110
Public safety
Law enforcement
12,710,033
11,993,571
12,372,070
(378,499)
Fire control
13,370,237
14,749,044
12,738,543
2,010,501
26,080,270
26,742,615
25,110,613
1,632,002
Physical environment
2,951,077
2,856,136
2,722,345
133,791
Transportation
1,787,488
1,630,437
1,578,459
51,978
Economic environment
134,918
116,393
128,946
(12,553)
Culture and recreation
4,351,236
4,113,668
4,000,932
112,736
Debt Service:
Interest and fiscal charges
-
-
8,581
(8,581)
Total expenditures
41,312,100
41,638,058
39,412,575
2,225,483
Excess (deficiency) of revenues over
expenditures
(1,067,281)
1,273,379
6,218,130
4,944,751
The accompanying Notes to Financial Statements are an integral part of this statement.
Page134
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original
Final
Other Financing Sources (Uses):
Transfers in
2,250,750
1,863,645
2,280,645
417,000
Transfers out
(1,218,475)
(3,383,718)
(3,139,246)
244,472
Sale of general capital assets
20,000
93,710
93,710
-
Total other financing sources (uses)
1,052,275
(1,426,363)
(764,891)
661,472
Net Change in Fund Balance
(15,006)
(152,984)
5,453,239
5,606,223
Fund Balance - beginning
20,088,322
20,088,322
20,088,322
-
Fund Balance - ending $
20,073,316 $
19,935,338
$ 25,541,561 $
5,606,223
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 135
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Infrastructure Special Revenue Fund
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original Final
Revenues:
Intergovernmental revenues
$ 4,600,000 $ 5,210,000
$ 5,538,802 $
328,802
Investment earnings (loss)
2,000 2,000
51,879
49,879
Total revenues
4,602,000 5,212,000
5,590,681
378,681
Expenditures:
Current:
General government
169,320
99,621
98,629
992
Public safety:
Law enforcement
609,300
681,100
656,188
24,912
Fire control
-
642,132
641,878
254
609,300
1,323,232
1,298,066
25,166
Physical Environment
300,000
202,205
192,047
10,158
Transportation
753,800
669,193
600,767
68,426
Culture and recreation
1,400,000
839,977
828,254
11,723
Debt Service:
Principal
91,505
91,505
91,493
12
Interest
11,285
11,285
11,277
8
102,790
102,790
102,770
20
Total expenditures
3,335,210
3,237,018
3,120,533
116,485
Excess (deficiency) of revenues over expenditures
1,266,790
1,974,982
2,470,148
495,166
Other Financing (Uses):
Transfers out
(2,030,520)
(2,030,520)
(2,030,520)
-
Total other financing uses
(2,030,520)
(2,030,520)
(2,030,520)
-
Net Change in Fund Balances
(763,730)
(55,538)
439,628
495,166
Fund Balances - beginning
4,037,993
4,037,993
4,037,993
-
Fund Balances - ending
$ 3,274,263 $
3,982,455 $
4,477,621 $
495,166
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 136
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
ARPA Special Revenue Fund
Year ended September 30, 2023
Revenues:
Intergovernmental revenues
Total revenues
Expenditures:
Current:
General government
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
Actual Amounts,
Budgeted Amounts Budgetary Basis
Original Final
Variance with
Final Budget -
Positive
(Negative)
$ $ $ 2,875,340 $ 2,875,340
2,875,340 2,875,340
744 743 1
744 743 1
(744) 2,874,597 2,875,341
(3,000,000) (2,874,597) 125,403
(3,000,000) (2,874,597) 125,403
(3,000,744) 3,000,744
$ $ (3,000,744) $ - $ 3,000,744
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 137
City of Clermont, Florida
Statement of Net Position
Proprietary Funds
September 30, 2023
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
$ 10,723,790
$ 16,559,404
$ 412,594
$ 457,589
$ 28,153,377 $
2,953,939
11,045,676
7,240,228
2,470,572
-
20,756,476
414,500
929,011
742,224
314,554
1,022,757
3,008,546
-
167,116
366,243
179,651
83,929
796,939
6,399
23,701
-
-
-
23,701
-
99,523
79,782
25,464
18,838
223,607
16
22,988,817
24,987,881
3,402,835
1,583,113
52,962,646
3,374,854
2,664,570
13,350,422
1,049,307
-
17,064,299
-
-
275,000
67,127
342,127
-
34,478
51,571
6,171
-
92,220
961
52,427,099
83,234,182
5,796,491
21,884,054
163,341,826
-
5,571,021
13,306,567
3,558,022
1,725,441
24,161,051
(23,229,313)
(45,745,266)
(4,247,327)
(8,144,701)
(81,366,607)
34,768,807
50,795,483
5,107,186
15,464,794
106,136,270
-
37,467,855
64,472,476
6,229,791
15,464,794
123,634,916
961
60,456,672
89,460,357
9,632,626
17,047,907
176,597,562
3,375,815
201,584
363,210
-
-
564,794
-
95,353
127,289
78,633
44,890
346,165
296,937
490,499
78,633
44,890
910,959
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 138
Liabilities:
Current liabilities:
Accounts payable
Salaries payable
Accrued interest payable
Due to other funds
Compensated absences
Customer deposits payable
Unearned revenue
Revenue bonds and notes payable -current
Total current liabilities
Noncurrent liabilities:
Compensated absences
Other post employment benefits
Notes payable
Revenue bonds payable
Total noncurrent liabilities
Total liabilities
Deferred Inflows of Resources:
Deferred inflows related to OPEB
Total deferred inflows of resources
Net Position:
Net investment in capital assets
Restricted for capital improvements
Unrestricted
Total net position
949,098
2,914,951
452,452
300,053
4,616,554
607,037
57,380
43,907
30,292
13,714
145,293
1,466
22,848
40,619
9,266
30,071
102,804
-
-
-
-
275,000
275,000
16,755
21,876
12,189
2,833
53,653
511,524
-
-
-
511,524
-
5,724
2,779
79
19
8,601
6,659
331,200
588,800
93,740
304,382
1,318,122
-
1,894,529
3,612,932
598,018
926,072
7,031,551
615,162
150,795
196,883
109,696
25,494
482,868
-
1,092,883
1,458,904
901,240
514,501
3,967,528
-
-
962,644
3,125,932
4,088,576
2,548,800
4,531,200
-
-
7,080,000
3,792,478
6,186,987
1,973,580
3,665,927
15,618,972
-
5,687,007
9,799,919
2,571,598
4,591,999
22,650,523
615,162
7,606
10,153
6,272
3,581
27,612
7,606
10,153
6,272
3,581
27,612
-
32,090,391
46,038,693
5,100,109
13,057,237
96,286,430
7,704,662
22,795,777
-
-
30,500,439
-
15,263,943
11,306,314
2,033,280
(560,020)
28,043,517
2,760,653
$ 55,058,996
$ 80,140,784
$ 7,133,389
$ 12,497,217
154,830,386 $
2,760,653
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.
Total Net Position per Government -Wide Financial Statements
The accompanying Notes to Financial Statements are an integral part of this statement.
278,497
$ 155,108,883
Page 139
Page140
City of Clermont, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Year Ended September 30, 2023
Governmental
Business -Type Activities -Enterprise Funds Activities -
Internal Service
Water Sewer Sanitation Stormwater Total Fund
Operating Revenues:
Charges for services $
9,685,579 $
9,320,663 $
4,267,856 $
1,948,759 $
Miscellaneous
382,886
-
-
40
Total operating revenues
10,068,465
9,320,663
4,267,856
1,948,799
Operating Expenses:
Personnel services
2,039,181
2,859,252
1,778,420
917,634
Utilities
897,831
1,286,457
1,888
14,092
Dump fees
7,370
455,670
601,126
19,656
Administrative services
555,861
536,369
270,229
171,094
Repairs and maintenance
2,779,213
207,368
250,011
33,428
Depreciation and amortization
2,437,959
4,118,342
410,141
1,187,537
Professional services
305,829
279,964
43,939
60,112
Insurance claims and expenses
129,018
191,572
74,552
44,150
Other supplies and expenses
584,450
578,501
550,930
79,604
Total operating expenses
9,736,712
10,513,495
3,981,236
2,527,307
Operating income (loss)
331,753
(1,192,832)
286,620
(578,508)
Nonoperating Revenues (Expenses):
Investment income
627,631
945,759
172,082
6,378
Interest expense
(98,626)
(176,029)
(28,007)
(91,709)
Gain (loss) on disposal of capital assets
(6,886)
(2,065)
5
5
Total nonoperating revenue (expenses)
522,119
767,665
144,080
(85,326)
Income (loss) before contributions and transfers
853,872
(425,167)
430,700
(663,834)
Capital contributions
2,062,735
5,189,476
-
30,000
Transfers in
1,067,785
690,658
1,116,154
Transfers out
(1,105,645)
(1,175,000)
-
-
Change in net position
2,878,747
4,279,967
430,700
482,320
Total Net Position - Beginning
52,180,249
75,860,817
6,702,689
12,014,897
Total Net Position - Ending $
55,058,996 $
80,140,784 $
7,133,389 $
12,497,217
Change in Net Position, per above
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.
Change in Business -Type Activities in Net Position per Government -Wide Financial
Statements
$
25,222,857 $
382,926
25,605,783
7,594,487
2,200,268
1,083,822
1,533,553
3,270,020
8,153,979
689,844
439,292
1,793,485
26,758,750
(1,152,967)
1,751,850
(394,371)
(8,941)
1,348,538
195,571
7,282,211
2,874,597
(2,280,645)
8,071,734
8,071,734
409,810
8,481,544
7,890,478
51,507
7,941,985
83,993
58,021
6,263,584
6,405,598
1,536,387
27,342
27,342
1,563,729
1,563,729
1,196,924
2,760,653
The accompanying Notes to Financial Statements are an integral part of this statement. Page 141
City of Clermont, Florida
Statement of Cash Flows
Proprietary Funds
Year Ended September 30, 2023
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
$ 10,401,606 $
9,740,544 $
4,300,362 $
2,010,286 $
26,452,798
$ -
-
-
-
-
-
7,944,440
(4,746,975)
(2,902,376)
(2,042,734)
(193,532)
(9,885,617)
(5,919,813)
(2,179,640)
(2,509,841)
(1,735,189)
(816,979)
(7,241,649)
(82,527)
3,474,991
4,328,327
522,439
999,775
9,325,532
1,942,100
1,067,785
690,658
-
1,116,154
2,874,597
-
(1,105,645)
(1,175,000)
-
-
(2,280,645)
(37,860)
(484,342)
220,000
1,116,154
813,952
(3,097,775)
(5,737,478)
(2,260,673)
(1,119,778)
(12,215,704)
20
70
5
5
100
(72,399)
(128,710)
(28,803)
(94,311)
(324,223)
(324,000)
(576,000)
(91,355)
(296,639)
(1,287,994)
-
-
(349)
30,000
29,651
1,394,845
3,556,610
-
-
4,951,455
(2,099,309)
(2,885,508)
(2,381,175)
(1,480,723)
(8,846,715)
The accompanying Notes to Financial Statements are an integral part of these statements.
Page142
Cash Flows from Investing Activities:
Sale (purchase) of investments
245,947
364,004
(56,826)
553,125
(2,267)
Investment income (loss)
469,259
708,875
195,261
6,378
1,379,773
30,549
Net cash provided by investing activities
715,206
1,072,879
138,435
6,378
1,932,898
28,282
Net Increase (Decrease) in Cash and Cash Equivalents
2,053,028
2,031,356
(1,500,301)
641,584
3,225,667
1,970,382
Cash and Cash Equivalents - beginning
9,599,773
15,270,272
2,227,449
838,762
27,936,256
983,557
Cash and Cash Equivalents - end
$ 11,652,801 $
17,301,628 $
727,148 $
1,480,346 $
31,161,923 $
2,953,939
Classified As:
Cash and cash equivalents
$ 10,723,790 $
16,559,404 $
412,594 $
457,589 $
28,153,377 $ 2,953,939
Restricted cash and cash equivalents
929,011
742,224
314,554
1,022,757
3,008,546 -
Total
$ 11,652,801 $
17,301,628 $
727,148 $
1,480,346 $
31,161,923 $ 2,953,939
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities
Operating income (loss)
$ 331,753 $
(1,192,832) $
286,620 $
(578,508) $
(1,152,967) $ 1,536,387
Adjustments Not Affecting Cash:
Depreciation and amortization
2,437,959
4,118,342
410,141
1,187,537
8,153,979
Change in Assets and Liabilities:
Decrease (Increase) in accounts receivable
279,164
419,881
32,506
62,128
793,679
(2,021)
Increase in unearned revenue
-
-
-
(641)
(641)
4,476
Increase in customer deposits
53,977
-
-
53,977
-
Decrease in prepaid costs
(3,862)
(13,950)
(332)
(3,581)
(21,725)
Decrease (Increase) in inventory
5,776
-
-
-
5,776
-
Increase (Decrease) in accounts payable
510,683
647,475
(249,727)
232,185
1,140,616
401,792
Increase in OPEB
(150,554)
332,964
30,971
103,031
316,412
-
Increase in accrued liabilities
10,095
16,447
12,260
(2,376)
36,426
1,466
Total adjustments
3,143,238
5,521,159
235,819
1,578,283
10,478,499
405,713
Net Cash Provided (Used) by Operating Activities
$ 3,474,991 $
4,328,327 $
522,439 $
999,775 $
9,325,532 $
1,942,100
Noncash Investing, Capital, and Financing Activities:
Contributed assets
$ 532,360 $
1,342,406 $
- $
- $
1,874,766 $
-
Increase (Decrease) in Fair Value of Investments
$ 143,946 $
215,306 $
(25,761) $
- $
333,491 $
The accompanying Notes to Financial Statements are an integral part of these statements.
Page143
City of Clermont, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2023
Total Employee
Pension Funds
Assets:
Cash and cash equivalents $ 1,389,059
Receivables:
Accounts receivable 975,355
Total receivables 975,355
Investments, at fair value:
U.S. Government & other debt securities 20,120,958
Equities 35,110,086
Real estate 1,924,016
Total investments 57,155,060
Total assets 59,519,474
Liabilities:
Refunds payable and other 19,443
Pending trades payable 33,568
Total liabilities 53,011
Net Position:
Net position restricted for pensions $ 59,466,463
The accompanying Notes to Financial Statements are an integral part of this statement.
Page 144
City of Clermont, Florida
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended September 30, 2023
Total Employee
Pension Funds
Additions:
Contributions:
Employer
$ 1,710,650
Plan members
693,070
State
883,912
Total contributions 3,287,632
Investment earnings
Net increase (decrease) in fair value of investments
2,591,408
Interest and dividends
1,450,916
Uther income
128,411
Less: Investment expense
(58,090)
Total net investment earnings
4,112,645
Total additions
7,400,277
Deductions:
Benefits/distributions
1,045,020
Refund of contributions
23,158
Administrative expenses
163,442
Total deductions
1,231,620
Change in Net Position
6,168,657
Net Position - beginning
53,297,806
Net Position - ending
$ 59,466,463
The accompanying Notes to Financial Statements are an integral part of this statement.
Page145
Page146
NOTES TO FINANCIAL STATEMENTS
Page147
Page148
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Clermont, Florida (the City) is a political subdivision of the State of Florida located in Lake County. The City of Clermont
was incorporated under State law in December 1916 and operates under the council-manager form of government under its charter
adopted pursuant to H.B. 2223, Ch.67-1217 Special Acts, of the State of Florida. The legislative branch of the City is composed of a
Mayor and four (4) members elected Council. The City Council is responsible for the establishment and adoption of policy. The
execution of such policy is the responsibility of the Council appointed City Manager.
In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units.
The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially
accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its
officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or
there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary
government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on
it.
A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or
activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the
primary government (a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to
finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the
organization. In applying the above criteria, the City has one blended component unit as follows:
The City of Clermont Community Redevelopment Fund.,
The City of Clermont created the Downtown Redevelopment Agency in May of 1997. This is a dependent taxing district established in
accordance with Chapter 163, Part III, Florida Statutes. Notification to affected taxing agency was done in compliance with Chapter
163.346, Part III, Florida Statutes. The incremental annual increase in tax over the base years will be used to fund projects designed to
enhance and improve the described area. The City Council, being the duly elected governmental body for the designated area,
passed Resolution 97-950, which established the City of Clermont as the Redevelopment Agency for the purpose of carrying out the
community redevelopment programs and plans within the area. Through Ordinance 359-M the City established the Community
Redevelopment Trust Fund to account for all transactions generated by this special revenue fund. The City of Clermont Community
Redevelopment Fund is presented as a blended component unit. The CRA is governed by a board of seven- the five members of the
Clermont City Council and two individuals appointed by the City Council. On December 8, 2015, Ordinance No. 2015-77 passed and
modification of the Community Redevelopment Plan was approved. Because the governing body of the CRA is substantively the same
as the City and the City has operational responsibility for the CRA, the CRA is presented as a blended component unit of the City.
Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information
on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter
are excluded from the government -wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Page149
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 150
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 employee's 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 151
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 $5,000 or more and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not
capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets
constructed.
Capital assets of the City are depreciated using the straight line method over the following estimated useful lives:
Assets
Years
Buildings
10-50
Improvements
15-50
Infrastructure
30-50
Equipment&Machinery
3-15
Intangible Assets
3-15
Page 152
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 assets
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 assets that
applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only
one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds
report unavailable revenues from several sources: liens, forfeitures and rental income. These amounts are deferred and
recognized as an inflow of sources in the period that the amounts become available. The City also has deferred inflows of
pension earnings and OPEB reported in the government -wide statement of net position.
Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and
unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the
government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the
resources are considered to be applied. It is the City's policy to consider restricted net position to have been depleted before
unrestricted net position is applied.
Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of
committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed,
assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about
the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to
have been depleted before using any of the components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund
balance. Unassigned fund balance is applied last.
Page 153
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 2023, the City has not implemented any new accounting standards with a material effect on the City's financial
statements.
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
12,373,082
(4,562,073)
Net adjustment to increase net changes in fund balances - total
governmental tunds to arrive at changes in net position of governmental activities $ 7,811,009
Page 154
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 $ 2,309,903
Net adjustment to de crease net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ 2,309,903
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 $ (248,546)
Other Post Employment Benefits (1,801,716)
Accrued Interest Payable 19,808
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ (2,030,454)
NOTE 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
• Prior to the end of the fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following October 1. The operating budget includes proposed expenditures and the means of
financing them.
• Budget workshops are scheduled as needed.
• The general summary of the budget and notice of public hearing is published in the local newspaper.
• Public hearings are conducted to obtain taxpayer comments.
• Prior to October 1, the budgets are legally enacted through passage of a resolution.
• The City Manager is authorized to transfer budgeted amounts within departments; however, any revisions that alter the total
appropriations of any department must be approved by the City Council.
• The level of classification detail at which expenditures may not legally exceed appropriations is the department level.
• Appropriations lapse at the close of the fiscal year to the extent they have not been expended. Encumbrance accounting is
employed in governmental funds. Encumbrances (e.g., purchase orders and contracts) outstanding at year end are reported
as assigned fund balances and do not constitute expenditures or liabilities because the commitments will be re -appropriated
and honored during the subsequent year.
• Budgets are adopted for the general fund, special revenue funds, debt service funds and the capital projects fund on a basis
consistent with generally accepted accounting principles, except as described below under Budget Basis of Accounting.
Budgets are also adopted for the enterprise funds: however, budgetary comparisons are not presented since they are not
required under generally accepted accounting principles.
• The City Council, by Ordinance or Resolution, may make supplemental appropriations in excess of those originally
estimated for the year up to the amount of available revenues. Budgeted amounts presented in the accompanying financial
statements have been adjusted for legally authorized revisions.
Page 155
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, Debt Service Fund and Police Impact Fee Fund.
These excess expenditures were funded by greater than anticipated revenues and available fund balance.
NOTE 4 CASH AND INVESTMENTS
Deposits
All bank deposits were fully covered by federal depository insurance or by collateral held in banks that are members of the State of
Florida's Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans.
This limits local government deposits to "authorized depositories".
Investments
Investments in all fund types are stated at fair value, which is the amount for which an investment could be exchanged in a current
transaction between willing parties, other than in a forced liquidation sale. Fair value is based on quoted market prices. Changes in the
fair value of investments are recognized as revenue and included in investment income.
The City's investment policies are governed by state statute and city ordinance. Authorized investments are:
• The Local Government Surplus Funds Trust (SBA).
• SEC registered money market funds.
• Interest -bearing time deposits or savings accounts in qualified public depositories.
• Direct obligations of the U.S. Treasury.
• Federal agencies and instrumentalities.
• Securities of, or other interests in, any open-end or closed -end management -type investment company or investment trust
registered under the Investment Company Act of 1940.
• Repurchase Agreements.
• Other investments authorized by ordinance.
The assets of the City's general employees defined benefit pension fund, are invested in the pooled investment fund for the
Florida Municipal Pension Trust Fund (FMPTF). Investments held in this fund consist of corporate bonds and stocks and cash
equivalents. The fund is stated at fair value, and investment earnings are allocated to participants in the fund based on their
equity in this pooled investment account as provided by the Florida Municipal Pension Fund.
Page 156
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Investments made by the City of Clermont at September 30, 2023 are summarized below. Defined benefit pension plan investments,
other than $35,110,086 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 Mortgage -Backed Securities
$ 288,322
AA+
7.75 years
Federal Agency Commercial Mortgage -Backed Securities
463,760
AA+
1.73 years
Federal Agency Collateralized Mortgage Obligation
220,063
AA+
1.78 years
US Treasury Notes
8,773,112
AA+
2.06 years
Supra -National Agency Bond/Note
452,085
AAA
0.98 years
Corporate Note
4,696,971
BBB+/AA
1.87 years
Asset Backed Security
3,841,302
AA tNR
3.57 years
Municipal Bonds
157,633
AA/AA+
1.04 years
FL Palm
41,040,740
AAAm
76 days
Real Estate Investment Funds
1,924,016
NR
N/A
Pension Fixed Income Securities
20,120,958
various
2 - 8 years
$ 81,978,962
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, 2023, 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, 2023, none of the
investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or
book entry form.
Concentration of Credit Risk:
The City's investment policy requires diversification but does not specify limits on types of investments.
Interest Rate Risk:
The City's investment policy does not specifically address interest rate risk, however the general investment policy is to apply the
prudent -person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek
reasonable income, preserve capital, and in general, avoid speculative investments. The City manages its exposure to declines in fair
values by investing primarily in pooled investments that have a weighted average maturity of less than three months.
Page 157
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, 2023:
Investments Valued by Fair Value Level
Federal Agency Collateralized Mortgage Obligation
Federal Agency Commercial Mortgage -Backed Securities
Federal Agency Mortgage -Backed Securities
US TreasuryNotes
Supra -National Agency Bond/Note
Corporate Note
Asset Backed Security
Municipal Bonds
FL Palm
Pension Fixed Income Securities
Real Estate Investment Funds
Pension Equity Securities
220,063
463,760
288,322
8,773,112
452,085
4,696,971
3,841,302
157,633
41,040,740
20,120,958
1,924,016
35,110,086
$ 117,089,048 $
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
8,773,112
20,120,958
35,110,086
64,004,156 $
Significant Other
Observable Inputs
(Level 2)
220,063
463,760
288,322
452,085
4,696,971
3,841,302
157,633
41,040,740
1,924,016
53,084,892
Page 158
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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
$ 3,548,800 $ 157,258
$ 1,068,361
$ (3,461,275)
$ 1,313,144
Infrastructure Special Revenue Fund
- -
1,848
1,848
Water Fund
160,837
85,712
(44,955)
201,594
Sewer Fund
515,184
51,571
(148,941)
417,814
Sanitation Fund
232,097
6,171
(52,446)
185,822
Stormwater Fund
109,491
-
(25,562)
83,929
Nonmajor Governmental Funds
-
10,779
10,779
Internal Service Fund
- -
7,360
7,360
$ 4,566,409 $ 157,258
$ 1,231,802
$ (3,733,179)
$ 2,222,290
NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2023 was as follows:
Beginning
Balance
Increases
Decreases
Ending Balance
Governmental Activities:
Capital Assets, not being depreciated:
Land
$ 25,851,030
$ 749,971 $
-
$ 26,601,001
Construction in progress
12,632,227
8,944,726
(1,094,973)
20,481,980
Total capital assets, not being depreciated
38,483,257
9,694,697
(1,094,973)
47,082,981
Capital Assets, being depreciated:
Buildings
31,625,370
473,689
32,099,059
Improvements/infrastructure
38,738,508
2,148,546
40,887,054
Machineryand equipment
19,304,445
2,545,179
(82,595)
21,767,029
Intangibles
526,563
42,924
569,487
Total capital assets being depreciated
90,194,886
5,210,338
(82,595)
95,322,629
Less Accumulated Depreciation for:
Buildings
(14,299,651)
(1,063,971)
(15,363,622)
Improvements/infrastructure
(16,743,694)
(1,789,430)
-
(18,533,124)
Machineryand equipment
(13,087,033)
(1,691,749)
72,141
(14,706,641)
Intangibles
(469,015)
(16,923)
-
(485,938)
Total accumulated depreciation
(44,599,393)
(4,562,073)
72,141
(49,089,325)
Total capital assets being depreciated, net
45,595,493
648,265
(10,454)
46,233,304
Governmental activities capital assets, net
$ 84,078,750
$ 10,342,962 $
(1,105,427)
$ 93,316,285
Page 159
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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
11,265,256
12,897,805
(2,010)
24,161,051
Total capital assets, not being depreciated
12,777,063
12,897,805
(2,010)
25,672,858
Capital Assets, being depreciated:
Buildings
1,008,118
16,800
1,024,918
Improvements/infrastructure
143,393,760
2,269,731
(10,420)
145,653,071
Machineryand equipment
12,910,015
947,947
(7,441)
13,850,521
Intangibles
1,301,454
55
1,301,509
Total capital assets being depreciated
158,613,347
3,234,533
(17,861)
161,830,019
Less Accumulated Depreciation for:
Buildings
(191,115)
(37,179)
-
(228,294)
Improvementsfinfrastructure
(65,085,151)
(6,719,997)
7,554
(71,797,594)
Machineryand equipment
(7,678,457)
(1,233,205)
3,271
(8,908,391)
Intangibles
(268,730)
(163,598)
-
(432,328)
Total accumulated depreciation
(73,223,453)
(8,153,979)
10,825
(81,366,607)
Total capital assets being depreciated, net
85,389,894
(4,919,446)
(7,036)
80,463,412
Business -type activities capital assets, net $
98,166,957
$ 7,978,359
$ (9,046)
$ 106,136,270
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:
General government
$
244,479
Public safety
1,653,908
Physical environment/transportation
1,390,361
Economic environment
668,967
Culture and recreation
604,358
Total Depreciation Expense -governmental activities
$ 4,562,073
Business -type Activities
Water $ 2,437,959
Sewer 4,118,342
Sanitation 410,141
Stormwater 1,187,537
Total Depreciation Expense - business -type activities $ 8,153,979
Page160
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 $8,784,782. For the fiscal
year, principal and interest paid on this series was $1,101,110 and total pledged revenue was $7,128,971.
The original amount of revenue bonds issued in prior years is described below. Revenue bonds outstanding at year end are as
follows:
Balance
Interest Rates and
September 30,
Business -Type Activities
Dates
Maturity Original Amount
2023
Water and Sewer Revenue
2.38%
12/1/2018
Refunding Bonds,
to
Series 2017
(6/1 & 12/1)
12/1/2030 $ 10,817,000
$ 8,000,000
$ 8,000,000
Annual debt service requirements
to maturity for revenue bonds are as follows:
Business - Type Activities
Year Ending September 30,
Principal
Interest
2024
$ 920,000
$ 179,452
2025
943,000
157,283
2026
965,000
134,578
2027
986,000
111,360
2028
1,009,000
87,619
2029-2031
3,177,000
114,490
Total
$ 8,000,000
$ 784,782
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 $2,858,014. For the fiscal year, principal and interest paid on
this series was $476,647 and total pledged revenue was $6,996,465. 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 $3,345,597. For the fiscal year, principal and interest paid on this
series was $418,571 and total pledged revenue was $5,538,802. 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 161
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 $24,182,109. For the fiscal year, principal and interest
paid on this series was $2,422,479. 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:
Balance
Interest Rates and
September 30,
Governmental Activities
Dates
Maturity
Original
Amount
2023
Public Improvement Refunding
2.03%
12/1/2016
Revenue Note, Series 2016
(6/1 & 12/1)
to
12/1/2028
$
5,331,196
$
2,690,935
Infrastructure Sales Surtax
2.12%
12/1/2016
Revenue Note, Series 2016
(6/1 & 12/1)
to
12/1/2030
$
5,300,000
3,077,448
Master Plan Capital Projects
2.63%
12/1/2018
Revenue Note, Series 2017
(6/1 & 12/1)
to
12/1/2032
$
23,670,559
16,779,302
$
22,547,685
Business -Type Activities
Master Plan Capital Projects
2.63%
12/1/2018
Revenue Note, Series 2017
(6/1 & 12/1)
to
12/1/2032
$
6,329,441
$
4,486,698
Annual debt service requirements to maturity for revenue notes are as follows:
Governmental Activities
Business
-Type Activities
Year Ending September 30,
Principal
Interest
Principal
Interest
2024
$ 2,272,175 $
533,471
$
398,122
$
112,765
2025
2,327,849
477,405
408,671
102,156
2026
2,383,858
419,962
419,220
91,269
2027
2,442,577
361,103
430,402
80,097
2028
2,501,648
300,791
441,584
68,630
2029-2033
10,619,578
643,362
2,388,699
160,326
Total
$ 22,547,685 $
2,736,094
$
4,486,698
$
615,243
Page162
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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
2024
2025
2026
2027
2028
Governmental Activities
Principal
Interest
$ 93,282 $
9,487
95,107
7,662
96,967
5,802
98,864
3,905
100,797
1,970
$ 485,017 $
28,826
Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2023 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
$ 3,108,716 $
3,427,071
18,230,308
576,510 -
11,605,338 1,692,265
1,704,367 2,345,802
1,699,324 418,479
$ 40,351,634 $ 4,456,546
Ending Due Within
Balance One Year
$ (417,781) $ 2,690,935 $ 426,262
(349,623)
3,077,448
357,035
(1,451,006)
16,779,302
1,488,878
(91,493)
485,017
93,282
13,297,603
-
4,050,169
-
(169,932)
1,947,871
194,787
$ (2,479,835) $ 42,328,345 $ 2,560,244
$ 8,900,000 $ $ (900,000) $ 8,000,000 $ 920,000
4,874,692 (387,994) 4,486,698 398,122
3,687,730 279,798 3,967,528 -
504,351 82,604 (50,434) 536,521 53,653
$ 17,966,773 $ 362,402 $ (1,338,428) $ 16,990,747 $ 1,371,775
For governmental activities, compensated absences, net pension obligations, and net other postemployment benefit obligations
are generally liquidated by the general fund.
Page 163
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
NOTE 8 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Interfund transfers for the year ended September 30, 2023 consisted of the following:
Transfers In
Capital Nonmajor Stormwater
Transfers Out: General Fund Projects Govt Water Fund Sewer Fund Fund
Total
General Fund $ $ 2,500,000 $ 639,246 $ $ $
$ 3,139,246
Infrastructure Fund - 2,030,520
2,030,520
ARPA Fund - 1,067,785 690,658 1,116,154
2,874,597
Water Fund 1,105,645 - - -
1,105,645
Sewer Fund 1,175,000 -
1,175,000
Nonmajor -
Governmental - 584,352
584,352
$ 2,280,645 $ 2,500,000 $ 3,254,118 $ 1,067,785 $ 690,658 $ 1,116,154
$ 10,909,360
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, 2023 is as follows:
Receivable Fund Payable Fund
Amount
Sewer Fund Stormwater Fund $
275,000
Sanitation Fund General Fund
62,127
$ 337,127
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 164
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, 2022 actuarial valuations is $7,413 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, 2023 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits
Inactive Plan Members Entitled to but Not Yet Receiving Benefits
Active Plan Members
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2023, 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, 2023 were as follows:
Total Pension Liability $ 216,960
Plan Fiduciary Net Position (210,745)
Sponsor's Net Pension Liability (Asset) $ 6,215
Plan Fiduciary Net Position as Percentage of Total Pension Liability (Asset) 97.14%
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2021, updated September 30, 2023 using
the following actuarial assumptions:
Inflation 2.62%
Salary Increases 0.00%
Investment Rate of Return 7.00%
Page165
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, 2023 are summarized in the following table:
Long Term Expected
Asset Class
Target Allocation
Real Rate 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)
Plan Fiduciary Net
Total Pension Liability
Position
Net Pension Liability
(a)
(b)
(a) - (b)
Balance at September 30, 2022
$ 227,221
$ 221,006
$ 6,215
Changes Due to:
Service Cost
-
-
-
Expected interest growth
17,155
18,592
(1,437)
Unexpected investment income
-
-
Employer contributions
-
Benefit payments and refunds
(27,416)
(27,416)
-
Administrative expenses
(1,437)
1,437
Assumption changes
-
-
-
Balance at September 30, 2023
$ 216,960
$ 210,745
$ 6,215
Page166
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
NOTE 9 RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
1 % Decrease Current Discount Rate
6.00% 7.00%
General Pension Plan Net Pension Liability $ 16,829 $ 6,215 $
1% Increase
8.00%
(3,509)
Deferred outflows and inflows of resources
For the year ended September 30, 2023 the City will recognize a pension expense of $5,927. On September 30, 2023 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 19,290 -
$ 19,290 $
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:
2024
$ 4,583
2025
3,989
2026
10,718
2027
-
2028
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, 2022 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 $489,524 in 2023 and were recorded as revenue and
expenditures in the general fund.
Page167
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, 2023 plan membership consisted of the following:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 31
Inactive Plan Members Entitled to but Not Yet Receiving Benefits 41
Active Plan Members 76
148
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2023, 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, 2023 were as follows:
Total Pension Liability $ 28,869,538
Plan Fiduciary Net Position (27,304,461)
Sponsor's Net Pension Liability (Asset) $ 1,565,077
Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) 94.58%
* 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, 2022, updated September 30, 2023 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.
Page168
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, 2023 are summarized in the following table:
Long Term Expected
Asset Class
Target Allocation
Real Rate of Return
Domestic Equity
40%
7.16%
International Equity
10%
2.92%
Bonds
25%
1.67%
Convertibles
10%
5.88%
Private Real Estate
10%
5.94%
Infrastructure
5%
5.06%
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
Balance at September 30, 2022
Changes Due to:
Service Cost
Expected interest growth
Unexpected investment income
Demographic experience
Employer contributions
Employee contributions
Benefit payments and refunds
Administrative expenses
Assumption changes
Balance at September 30, 2023
Increase (Decrease)
Plan Fiduciary Net
Total Pension Liability Position
(a) (b)
$ 25,528,150 $ 24,704,716 $
Net Pension Liability
(a) - (b)
823,434
1,613,394
-
1,613,394
1,867,082
1,754,347
112,735
-
118,335
(118,335)
475,621
-
475,621
-
1,125,138
(1,125,138)
304,306
(304,306)
(614,709)
(614,709)
-
(87,672)
87,672
$ 28,869,538 $
27,304,461 $
1,565,077
Page169
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
NOTE 9 RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
1 % Decrease Current Discount Rate 1 % Increase
6.00% 7.00% 8.00%
Police Pension Net Pension Liability (Asset) $ 5,671,561 $ 1,565,077 $ (1,771,079)
Deferred outflows and inflows of resources
For the year ended September 30, 2023 the City will recognize a pension expense of $2,386,372. On September 30, 2023 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 $ 549,208 $ 633,235
Changes of assumptions 327,847 -
Net difference between projected and actual earnings on pension plan
investments 2,611,348 -
$ 3,488,403 $ 633,235
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:
2024 $ 658,043
2025 700,022
2026 1,441,806
2027 44,359
2028 (3,285)
Thereafter 14,223
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, 2023 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, 2022 actuarial valuation was 14.45%. Employees must
contribute 5.5% of pensionable earnings (4% prior to January 24, 2023). 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 $394,388 in 2023 and were
recorded as revenue and expenditures in the general fund.
Page170
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, 2023 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 72
Active Plan Members 81
159
Net Pension Liability of the City
The City's net pension liability was measured as of September 30, 2023, 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, 2023 were as follows:
Total Pension Liability $ 31,831,275
Plan Fiduciary Net Position (29,352,398)
Sponsor's Net Pension Liability (Asset) $ 2,478,877
Plan Fiduciary Net Position as a Percentage ofTotal Pension Liability (Asset) 92.21%
* 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, 2022, updated September 30, 2023 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 171
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, 2023 are summarized in the following table:
Long Term Expected
Asset Class
Target Allocation
Real Rate of Return
Domestic Equity
40%
7.16%
International Equity
10%
2.92%
Bonds
25%
1.67%
Convertibles
10%
5.88%
Private Real Estate
10%
5.94%
Infrastructure
5%
5.06%
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
Balance at September 30, 2022
Changes Due to:
Service Cost
Expected interest growth
Unexpected investment income
Demographic experience
Employer contributions
Employee contributions
Benefit payments and refunds
Administrative expenses
Changes in benefit terms
Assumption changes
Balance at September 30, 2023
Increase (Decrease)
Plan Fiduciary Net
Total Pension Liability Position
(a) (b)
$ 26,871,032 $ 25,996,314 $
1,911,603
1,992,088
954,081
(298,246)
400,717
$ 31,831,275 $
1,869,149
51,006
1,419,744
388,764
(298,246)
(74,333)
29,352,398 $
Net Pension Liability
(a) - (b)
874,718
1,911,603
122,939
(51,006)
954,081
(1,419,744)
(388,764)
74,333
400,717
2,478,877
Page 172
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
NOTE 9 RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability to changes in the Discount Rate
1 % Decrease Current Discount Rate 1 % Increase
6.00% 7.00% 8.00%
Fire Pension Net Pension Liability (Asset) $ 6,882,684 $ 2,478,877 $ (1,095,716)
Deferred outflows and inflows of resources
For the year ended September 30, 2023 the City will recognize a pension expense of $3,379,272. On September 30, 2023 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 $ 812,366 $ 239,641
Changes of assumptions 911,100
Net difference between projected and actual earnings on pension plan
investments 2,774,917
$ 4,498,383 $ 239,641
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:
2024
$ 1,152,356
2025
1,173,174
2026
1,625,013
2027
143,900
2028
135,016
Thereafter
29,283
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, 2023 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 2023 was $10,314,566; the City's total payroll for City employees was $26,199,001.
Page 173
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 2023 was $1,030,679.
Aggregate Amounts of All Pension Plans
The aggregate amounts for all of the City's defined benefit pension plans at September 30, 2023 are as follows:
Governmental Activities
Net Pension Asset
(Liability)
Deferred Inflows
Deferred Outflows
Expense
General Employees Pension Plan
$ (6,215)
$ -
$ 19,290
$ 5,927
Police Pension Plan
(1,565,077)
(633,235)
3,488,403
2,386,372
Firefighters Pension Plan
(2,478,877)
(239,641)
4,498,383
3,379,272
$ (4,050,169)
$ (872,876)
$ 8,006,076
$ 5,771,571
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,
2023
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benefit
Trust
Trust Pension Funds
Assets:
Cash and cash equivalents
$ 2,872
$ 468,081 $
918,106 $
1,389,059
Investments:
U.S. Government & other debt securities
57,856
9,680,731
10,382,371
20,120,958
Equities
144,435
17,182,555
17,783,096
35,110,086
Real estate
-
962,008
962,008
1,924,016
Total Investments
202,291
27,825,294
29,127,475
57,155,060
Receivables
5,582
575,385
394,388
975,355
Total assets
210,745
28,868,760
30,439,969
59,519,474
Liabilities:
Refunds payable and other
-
13,543
5,900
19,443
Pending trades payable
16,030
17,538
33,568
Total liabilities
-
29,573
23,438
53,011
Net Position Restricted for Pensions
$ 210,745
$ 28,839,187 $
30,416,531 $
59,466,463
Page 174
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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, 2023
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benefit
Trust
Trust
Pension Funds
Additions:
Contributions:
Employer
$ $
685,294
$ 1,025,356
$ 1,710,650
Plan members
304,306
388,764
693,070
State
489,524
394,388
883,912
Total contributions
1,479,124
1,808,508
3,287,632
Investment earnings:
Net increase (decrease) in tair value of
investments
18,592
1,290,354
1,282,462
2,591,408
Interest and dividends
-
711,337
739,579
1,450,916
Other income
-
128,411
-
128,411
Investment expense
-
(30,445)
(27,645)
(58,090)
Total net investment earnings
18,592
2,099,657
1,994,396
4,112,645
Total additions
18,592
3,578,781
3,802,904
7,400,277
Deductions:
Benefits/distributions
27,416
742,516
275,088
1,045,020
Refund of contributions
-
-
23,158
23,158
Administrative expenses
1,437
87,672
74,333
163,442
Total deductions
28,853
830,188
372,579
1,231,620
Change in Net Position
(10,261)
2,748,593
3,430,325
6,168,657
Net Position Restricted for Pensions
Beginning of Year
221,006
26,090,594
26,986,206
53,297,806
End of Year
$ 210,745
$ 28,839,187
$ 30,416,531 $
59,466,463
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 175
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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 $17,265,131 was measured as of September 30, 2023 and was determined by the actuarial
valuation. The covered payroll was $23,611,610, and the ratio of Net OPEB liability as a percentage of covered payroll was
73.12%.
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 (FiduciaryNet Position as a percentage of Total OPEB Liability)
Covered Payroll
NetOPEB Liabilityas a Percentage of Covered Payroll
7.50%
4.54%
Fiscal year 2090
October 1, 2021
EntryAge Normal
4.09%
3.10%
4%
NA
23,611,610
73.12%
* The discount rate was based on the index provided by Bond Buyer 20-Bond General Obligation Index based on the
20 yearAAmunicipal bond rate as of September 30, 2023.
Page 176
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
NOTE 10 OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Below are the details regarding the Total OPEB liability for the measurement period from October 1, 2022, to September 30,
2023.
Total OPEB
Liability
Balance as of 9/30/2022
$ 15,293,068
Changes for the year:
Service Cost
1,205,574
Interest
681,746
Difference Between Expected & Actual Experience
-
Changes of Assumptions and Other Inputs
255,171
Benefit Payments
(170,428)
Other Changes
-
Net Changes
$ 1,972,063
Balance as of 9/30/2023
$ 17,265,131
(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
3.09% 4.09% 5.09%
Total OPEB Liability $ 20,073,201 $ 17,265,131 $ 14,968,965
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:
Total OPEB Liability
Decrease Health Care Increase
1% Trend 1%
$ 14,546,303 $ 17,265,131 $ 20,651,040
For the fiscal year ended September 30, 2023, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Difference between expected and actual experience
Changes of assumptions
Total
Deferred Outflows of Deferred Inflows of
Resources Resources
$ 339,859 $ -
1,166,514 120,159
$ 1,506,373 $ 120,159
Page 177
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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,
2024
$ 401,236
2025
367,118
2026
350,321
2027
99,191
2028
152,531
Thereafter
15,817
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 $607,037 represents claims processed through October 2023 which were applicable to the current fiscal
year and any additional claims are deemed immaterial. Changes to the current claims liability are as follows:
2023 2022
Claims Liabilities, beginning of year $ 205,245 $ 334,618
Incurred Claims 6,263,584 6,021,659
Payments on Claims (5,861,792) (6,151,032)
Claims Liabilities, end of year $ 607,037 $ 205,245
Page 178
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
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,
2023. 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.
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.
Page 179
City of Clermont, Florida
Notes to Financial Statements
Year Ended September 30, 2023
NOTE 13 FUND BALANCES (CONTINUED)
At September 30, 2023, the City's governmental fund balances were as follows:
Fund Balances
Nonspendable
Inventory/prepaids
Spendable
Restricted for:
Police
Fire
Transportation
Tree replacement
Building Services
Culture and recreation
Community redevelopment
Infrastructure
Debt service
Cemetery
Assigned for:
Capital projects
Police/fire donations
Subsequent year expenditures
Unassigned
Infrastructure
Capital Special Revenue
General Fund Projects Fund
$ 1,846,973 $
24,742
6 416 910
Other
Governmental
Funds
Total
- $ 13,501 $ 1,860,474
4,477,621
6,073
1,641,019
22,022,754
$ 25,541,561 $ 6,416,910 $ 4,477,621
1,357,729
1,357,729
3,455,481
3,455,481
-
24,742
320,016
320,016
2,594,138
2,594,138
5,995,182
5,995,182
608,560
608,560
-
4,477,621
1,897,822
1,897,822
1,408,020
1,408,020
6,416,910
6,073
1,641,019
22,022,754
$ 17,650,449 $ 54,086,541
NOTE 14 SUBSEQUENT EVENTS
Subsequent to year end, the City issued $28,000,000 Water and Sewer Revenue bonds. The bonds have an interest rate of
3.4%, and principal is due annually from December 1, 2024 through December 1, 2043.
Subsequent to year end, the City entered into a promissory note agreement with the County School board for $499,200, with no
interest to finance the purchase of property. Payments are due annually from August 2024 through August 2027.
Page 180
REQUIRED SUPPLEMENTAL INFORMATION
Page181
Page 182
City of Clermont, Florida
Schedule of Changes in Total OPEB Liability and Related Ratios
Last 10 Fiscal Years*
Total OPEB Liability
Service cost
Interest
Differences between expected and actual experience
Changes of assumptions
Benefit Payments (2)
Other changes
Net change in total OPEB liability
Total OPEB liability, beginning (1)
Total OPEB liability, ending
Plan fiduciarynet position as a percentage of total OPEB liability
9/30/2023
9/30/2022
9/30/2021
9/30/2020
9/30/2019
9/30/2018
$ 1,205,574 $
1,137,810 $
760,368 $
740,666 $
721,475 $
496,316
681,746
594,122
333,917
309,219
288,724
312,754
-
107,807
-
-
181,592
-
255,171
180,141
2,106,772
(662,223)
(170,428)
(160,421)
(213,932)
(242,837)
(236,545)
(109,600)
1,972,063
1,859,459
880,353
807,048
3,062,018
37,247
15,293,068
13,433,609
12,553,256
11,746,208
8,684,190
8,646,943
$ 17,265,131 $
15,293,068 $
13,433,609 $
12,553,256 $
11,746,208 $
8,684,190
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Covered payroll $ 23,611,610 $ 22,813,150 $ 19,075,627 $ 19,075,627 $ 18,701,595 $ 14,293,247
Net OPEB liabilityas a percentage of covered payroll 73.12% 67.04% 70.42% 65.81 % 62.81 % 60.76%
Notes to Schedule:
(1) Fiscal Year 2016 results calculated one year later using a 3.35% Discount Rate index as of 9/30/2017.
(2) Includes the Implicit Rate Subsidy.
* Prior year information not available, will be updated when information is available
Page 183
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - General Employees
Last 10 Fiscal Years*
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 -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
9/30/2023
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
17,155
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)
(27,416)
(35,443)
(49,982)
(49,982)
(53,410)
(51,013)
(57,338)
(61,435)
(63,484)
(56,412)
(10,261)
(49,471)
(28,363)
(28,363)
1,135
(27,578)
10,811
4,068
(4,297)
(28,183)
227,221
276,692
305,055
333,418
332,283
359,861
349,050
344,982
349,279
377,462
$ 216,960
$ 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
-
-
-
18,592
(34,153)
51,033
16,320
14,396
24,889
44,469
29,829
2,613
40,560
(27,416)
(35,443)
(38,315)
(42,156)
(53,410)
(57,338)
(57,338)
(61,435)
(63,484)
(66,212)
(1,437)
(1,536)
(5,235)
(5,271)
(1,597)
(1,681)
(5,457)
(1,757)
(6,508)
(3,136)
(89)
-
(10,261)
(65,639)
13,065
(20,089)
(29,593)
(25,363)
(9,559)
(33,363)
(67,379)
(28,788)
221,006
286,645
273,580
293,669
323,262
348,625
358,184
391,547
458,926
487,714
$ 210,745
$ 221,006
$ 286,645
$ 273,580
$ 293,669
$ 323,262
$ 348,625
$ 358,184
$ 391,547
$ 458,926
$ 6,215 $ 6,215 $ (9,953) $ 31,475 $ 39,749 $ 9,021 $ 11,236 $ (9,134) $ (46,565) $ (109,647)
97.14% 97.26% 103.60%
NIA N/A NIA
89.68% 88.08% 97.29% 96.88% 102.62% 113.50% 131.39%
NIA NIA N/A N/A NIA N/A N/A
Page 184
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - Police
Last 10 Fiscal Years*
9/30/2023
9/30/2022
9/30/2021
9/30/2020
9/30/2019
9/30/2018
9/3012017
9/30/2016
9/30/2015
9/30/2014
Total Pension Liability
Service Cost
$
1,613,394
$
1,497,597
$
1,335,386
$
1,048,755
$
1,048,755
$
941,659
$
941,659
$
836,661
$
560,680
$
524,531
Interest
1,867,082
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
475,621
(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
(614,709)
(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
3,341,388
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
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
8,451,606
Total Pension LiabiliVending (a)
$
28,869,538
$
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
1,125,138
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
304,306
293,891
268,568
238,416
175,526
120,269
116,332
108,806
99,188
95,733
Net Investment Income
1,872,682
(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
(614,709)
(866,834)
(550,996)
(446,562)
(403,441)
(381,207)
(640,378)
(342,697)
(298,559)
(334,599)
Administrative Expense
(87,672)
(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
2,599,745
(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
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
11,218,444
Plan Fiduciary Net Position - ending (b)
$
27,304,461
$
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)
$
1,565,077
$
823,434
$
(5,175,011)
$
(2,348,643)
$
(1,232,171)
$
(667,215)
$
(412,428)
$
(44,289)
$
(2,747,819)
$
(3,454,563)
Plan FiduciaryNet Position as Percentage of Total
Pension Liability
94.58%
96.77%
121.78%
111.24%
106.49%
103.78%
102.57%
100.31%
127.13%
137.69%
Covered Payroll
$
5,515,877
$
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 Liabilityas a Percentage of Covered
Payroll
28.37%
15.42%
-109.40%
-61.58%
-32.31%
-19.82%
-12.25%
-1.32%
-88.40%
-142.50%
Page 185
City of Clermont, Florida
Schedule of Changes in Net Pension Liability and Related Ratios - Fire
Last 10 Fiscal Years*
Total Pension Liability
Service Cost
Interest
Changes in Excess State Money
Differences Between Expected and Actual Experience
Changes of Assumptions
Changes in benefit terms
Benefit Payments, including refunds of employee
Net Change in Total Pension Liability
Total Pension Liability -beginning
Total Pension Llablllty-endmg (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 FiduciaryNet Position
Plan FiduciaryNet Position - beginning
Plan FiduciaryNet Position - ending (b)
Net Pension Liability- ending (a) - (b)
Plan FiduciaryNet Position as a Percentage of Total
Covered Payroll
Net Pension Liabilityas a Percentage of Covered Payroll
9/30/2023
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
$ 1,911,603
$ 1,700,162
$ 1,555,175
$ 1,313,842
$ 1,313,842
$ 1,025,516
$ 1,025,516
$ 784,710 $
524,325 $
596,543
1,992,088
1,768,108
1,542,677
1,272,336
1,141,847
996,576
782,004
515,458
553,753
530,089
954,081
(231,493)
(18,454)
(158,435)
(121,553)
633,143
(208,729)
(67,286)
-
294,977
1,079,623
634,356
2,505,255
400,717
-
-
-
-
-
(298,246)
(190,826)
(283,350)
(288,092)
(99,705)
(25,120)
(4,513)
(1,324)
(945)
(81,466)
4,960,243
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
26,871,032
23,825,081
20,734,056
18,435,970
15,158,798
13,283,379
10,212,873
6,617,503
5,607,656
4,562,490
$ 31,831,275 $ 26,871,032 $ 23,825,081 $ 20,734,056 $ 18,435,970 $ 15,158,798 $ 13,283,379 $ 10,212,873 $ 6,617,503 $ 5,607,656
1,419,744
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
388,764
324,115
316,273
220,098
231,935
200,118
238,785
279,064
141,632
86,520
1,920,155
(5,026,058)
4,864,047
2,267,101
1,240,965
1,063,078
1,599,687
858,136
(32,699)
704,467
(298,246)
(190,826)
(283,350)
(288,092)
(99,705)
(25,120)
(4,513)
(1,324)
(945)
(756)
(74,333)
(101,784)
(83,741)
(65,477)
(98,170)
(35,839)
(49,761)
(28,346)
(40,885)
(24,109)
3,356,084
(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
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
7,190,672
$ 29,352,398
$ 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
$ 2,478,877
$ 874,718
$ (5,366,281)
$ (2,037,519)
$ (552,895)
$ (969,528)
$ (363,953)
$ (852,562)
$ (2,848,584)
$ (2,963,971)
92.21%
96.74%
122.52%
109.83%
103.00%
106.40%
102.74%
108.35%
143.05%
152.86%
$ 6,384,519
$ 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
38.83%
15.53%
-105.44%
-45.91%
-12.46%
-26,91%
-10.10%
-30,47%
-101.81%
-105.93%
Page 186
City of Clermont, Florida
Schedule of Contributions and Investment Returns - General Employees
Last 10 Fiscal Years*
9/30/2023 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
N/A N/A N/A
Notes to Schedule
Valuation Date
10/1/2020
Actuariallydetermined 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
Inflation
2.77%
Salary Increases
N/A
Interest Rate
7% per year, compounded annually, net of investment expenses
Schedule of Investment Returns
9/30/2023 9/30/2022
9130/2021
9/30/2020
9/30/2019
9/30/2018
9/30/2017
9/30/2016 9/30/2015 9/3012014
Annual money -weighted rate of return, net
of investment expenses
-12.61 % -12.61 %
5.92%
4.23%
4.23%
7.00%
4.08%
4.08% 5.48% 8.55%
Page 187
City of Clermont, Florida
Schedule of Contributions and Investment Returns - Police
Last 10 Fiscal Years*
9/30/2023
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
$ 685,294
$ 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
1,125,138
1,380,471
1,084,478
943,063
891,380
944,540
756,302
632,411
522,208
670,126
Contribution Deficiency (Excess)
$ (439,844)
$ (718,628)
$ -
$ 42,548
$ 45,454
$ (39,311)
$ 119,291
$ 7,728
$ 61,351
$ (40,520)
Covered Payroll
$ 5,515,877
$ 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
20.40%
25.84%
22.93%
24.73%
23.37%
28.06%
22.46%
18.78%
16.80%
21.56%
Notes to Schedule
Valuation Date 10/1/2022 10/1/2022
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 em ployment 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% at age 20 to 0.18% at age 50; 75% of disabilities are assumed to be service -connected
Mortality
Sex -distinct rates set forth in the PUB-2010 MortalityTable, with full generational improvements in mortality using Scale MP-2018
Non -investment Expenses
Liabilities have been loaded by 1.50% to account for non -investment expenses
Future Contributions
Contributions from the employer and employees are assumed to be made as legally required.
Schedule of Investment Returns
9/30/2023 9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/3012016 9/30/2015 9/3012014
Annual money -weighted rate of return,
netof investment expenses
7.60%-17.83% 21.40% 4.23% 4.23% 7.00% 4.08% 4.08% 5.48% 8.55%
Page 188
City of Clermont, Florida
Schedule of Contributions and Investment Returns - Fire
Last 10 Fiscal Years*
9/30/2023
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
$ 1,025,431
$ 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
1,419,744
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)
$ (394,313)
$ (628,640)
$ (58,792)
$ (406)
$ -
$ 5,498 $
315,396
$ 155,658
$ (224,357)
$ (53,967)
Covered Payroll
6,384,519
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
22.24%
31.94%
31.57%
37.15%
35.72%
35.49%
22.14%
17.58%
29.57%
23.90%
Notes to Schedule
Valuation Date
10/1/2022
10/1/2022
Actuariallydetermined contribution rates are
calculated as of October 1, two years prior to the end of the fiscal year
in which contributions are reported
Methods and assumptions used to determine contribution rates
Actuarial Cost Method
Aggregate
Amortization Method
Level Percentage of Pay, Open
Remaining Amortization Period
30 Years
Asset Valuation Method
Market Value
Salary Increases
5.50% per annum
Interest Rate
7% per annum (2.5% per annum is attributable to long-term inflation); this rate was used to discount all future benefit payments
Retirement
20% of eligible participants are assumed to retire at each of ages 52 through 54 and 100% of eligible participants are assumed to retire at normal retirement age
Other Decrements
Assumed employment termination is based on age and ranges from 4.30% at age 20 to 0.00% at age 50
Assumed disabilityis based on age and ranges from 0.03% at age 20 to 0.18% at age 50; 75% of disabilities are assumed to be service -connected
Mortality
Sex -distinct rates setforth in the PUB-2010 MortalityTable, with full generational improvements in mortality using Scale MP-2018
Non -investment Expenses
Liabilities have been loaded by 1.75% to account for non -investment expenses
Future Contributions
Contributions from the employer and employees are assumed to be made as legally required.
Schedule of Investment Returns
9/30/2023 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
7.50%-16.90% 20.90% 4.23% 4.23% 7.00% 4.08% 4.08% 5.48% 8.55%
Page 189
Page 190
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Page191
Page 192
City of Clermont, Florida
Major Governmental Funds
Year Ended September 30, 2023
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 193
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Capital Projects Fund
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original Final
Revenues:
Investment earnings (loss)
$ $
$ 163,551 $
163,551
Total revenues
163,551
163,551
Expenditures:
Current:
Capital Outlay:
Physical environment
7,182,187
6,328,369
853,818
Economic environment
1,243,036
1,116,124
126,912
Total expenditures
8,425,223
7,444,493
980,730
Excess (deficiency) of revenues over expenditures
(8,425,223)
(7,280,942)
1,144,281
Other Financing Sources:
Transfers in
- 2,500,000
2,500,000
-
Total other financing sources
2,500,000
2,500,000
-
Net Change in Fund Balance
(5,925,223)
(4,780,942)
1,144,281
Fund Balances - beginning
11,197,852 11,197,852
11,197,852
-
Fund Balances - ending
$ 11,197,852 $ 5,272,629
$ 6,416,910 $
1,144,281
Page 194
City of Clermont, Florida
Other Governmental Funds
Year Ended September 30, 2023
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
Community Redevelopment Fund
Cemetery Fund
Tree Replacement Fund
Police Asset Forfeiture 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 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.
This fund was established to account for restricted activity related to
fees paid in lieu of replacement per city code sec 123-102(d)(6)
This fund was established to account for restricted activity related to
the City's participation in the U.S. Department of the Justice Asset
Forfeiture Program
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 195
City of Clermont, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2023
Assets:
Cash and cash equivalents
Investments
Other receivables
Prepaid costs
Total assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits
Total liabilities
Fund balances:
Nonspendable
Restricted
Total fund balances
Total liabilities and fund balances
Special Revenue
Recreation
Police Impact
Fire Impact
Building
Impact Fees
Fees
Fees
Services
$ 4,319,811
$ 933,195
$ 2,373,632 $
1,763,561
1,689,334
432,939
1,082,523
1,438,078
2,297
1,313
1,526
2,186
-
-
-
7,236
$ 6,011,442
$ 1,367,447
$ 3,457,681 $
3,211,061
$ 16,260 $ 101,885 $ 2,200 $ 26,102
- - - 19,884
- - - 563,701
16,260 101,885 2,200 609,687
- - - 7,236
5,995,182 1,265,562 3,455,481 2,594,138
5,995,182 1,265,562 3,455,481 2,601,374
$ 6,011,442 $ 1,367,447 $ 3,457,681 $ 3,211,061
Page 196
Special Revenue
Community
Total Nonmajor
Redevelopment
Tree
Police Asset
Total Special
Governmental
Special Revenue
Cemetery
Replacement
Forfeiture
Revenue Funds
Debt Service
Funds
$ 297,095
$
325,064
$
320,016
$
93,083
$
10,425,457
$
1,840,102
$
12,265,559
322,305
1,101,329
-
-
6,066,508
57,720
6,124,228
983
2,474
10,779
-
10,779
6,051
214
-
-
13,501
-
13,501
$ 626,434
$
1,429,081
$
320,016
$
93,083
$
16,516,245
$
1,897,822
$
18,414,067
$ 11,037
$
19,387
$
-
$
916
$
177,787
$
-
$
177,787
786
1,460
-
22,130
22,130
-
-
-
563,701
563,701
11,823
20,847
916
763,618
763,618
6,051
214
-
-
13,501
-
13,501
608,560
1,408,020
320,016
92,167
15,739,126
1,897,822
17,636,948
614,611
1,408,234
320,016
92,167
15,752,627
1,897,822
17,650,449
$ 626,434
$
1,429,081
$
320,016
$
93,083
$
16,516,245
$
1,897,822
$
18,414,067
Page 197
City of Clermont, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended September 30, 2023
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
1,772,557
-
-
-
145,433
2,299,151
732,566
961,910
-
92,550
21,726
57,655
74,091
2,391,701
754,292
1,019,565
1,992,081
586,821 52,187 1,791,197
143,012
143,012
586,821
52,187
1,791,197
2,248,689
167,471
967,378
200,884
(569,592)
(14,760)
(569,592)
(14,760)
-
-
1,679,097
152,711
967,378
200,884
4,316,085
1,112,851
2,488,103
2,400,490
$ 5,995,182 $
1,265,562
$ 3,455,481
$ 2,601,374
Page 198
Community
Redevelopment
Special Revenue
$ 653,261 $
14,040
667,301
Cemetery
203,300
48,203
7,502
259,005
Tree
Replacement
Police Asset Total Special
Forfeiture Revenue Funds
$ 653,261 $
1,772,557
16,201 16,201
- 348,733
- 3,993,627
(1) 308,264
- 7,502
16,200 7,100,145
- - 22,291 2,452,496
- 398,885 2,500 - 401,385
559,010 - - 559,010
- 143,012
398,885
(139,880)
559,010
108,291
108,291 (139,880)
506,320 1,548,114
614,611 $ 1,408,234 $
2,500
(2,500)
322,516
322,516
320,016
320,016 $
Total Nonmajor
Governmental
Debt Service Funds
$ 653,261
1,772,557
16,201
348,733
3,993,627
8,178 316,442
- 7,502
8,178 7,108,323
2,452,496
401,385
559,010
143,012
'L=i y
`ci'
`i'8
41
Page 199
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Recreation Impact Fees
Year ended September 30, 2023
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
Actual Amounts,
Budgeted Amounts Budgetary Basis
Original Final
Variance with
Final Budget -
Positive
(Negative)
$ 1,750,000 $ 2,299,151 $ 2,299,151 $ -
4,000 4,000 92,550 88,550
1,754,000 2,303,151 2,391,701 88,550
3,300,585
146,929
143,012
3,917
3,300,585
146,929
143,012
3,917
(1,546,585)
2,156,222
2,248,689
92,467
(569,605)
(569,605)
(569,592)
13
(569,605)
(569,605)
(569,592)
13
(2,116,190)
1,586,617
1,679,097
92,480
4,316,085
4,316,085
4,316,085
-
$ 2,199,895 $
5,902,702 $
5,995,182 $
92,480
Page1100
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Police Impact Fees
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original Final
Revenues:
Impact fees/special assessments
$ 450,000 $ 732,572
$ 732,566 $
(6)
Investment earnings (loss)
2,000 2,000
21,726
19,726
Total revenues
452,000 734,572
754,292
19,720
Expenditures:
Current:
Public Safety:
Law enforcement
186,408
521,619
586,821
(65,202)
Total expenditures
186,408
521,619
586,821
(65,202)
Excess (deficiency) of revenues over expenditures
265,592
212,953
167,471
(45,482)
Other Financing (Uses):
Transfers out
(14,765)
(9,865)
(14,760)
(4,895)
Total other financing uses
(14,765)
(9,865)
(14,760)
(4,895)
Net Change in Fund Balances
250,827
203,088
152,711
(50,377)
Fund Balances - beginning
1,112,851
1,112,851
1,112,851
Fund Balances - ending
$ 1,363,678 $
1,315,939 $
1,265,562 $
(50,377)
Page1101
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Impact Fees
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original
Final
Revenues:
Impact fees/special assessments
$ 535,000 $
961,914
$ 961,910 $
(4)
Investment earnings (loss)
2,000
2,000
57,655
55,655
Total revenues
537,000
963,914
1,019,565
55,651
Expenditures:
Current:
Public safety:
Fire control
390
62,714
52,187
10,527
Total expenditures
390
62,714
52,187
10,527
Excess (deficiency) of revenues over expenditures
536,610
901,200
967,378
66,178
Net Change in Fund Balances
536,610
901,200
967,378
66,178
Fund Balances - beginning
2,488,103
2,488,103
2,488,103
-
Fund Balances - ending
$ 3,024,713 $
3,389,303
$ 3,455,481 $
66,178
Page1102
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Building Services
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original Final
Revenues:
Licenses and permits
$ 1,700,000 $ 1,772,748
$ 1,772,557 $
(191)
Charges for services
100,200 144,450
145,433
983
Investment earnings (loss)
2,000 2,000
74,091
72,091
Total revenues
1,802,200 1,919,198
1,992,081
72,883
Expenditures:
Current:
Public safety
2,113,948
1,810,824
1,791,197
19,627
Total expenditures
2,113,948
1,810,824
1,791,197
19,627
Excess (deficiency) of revenues over expenditures
(311,748)
108,374
200,884
92,510
Net Change in Fund Balances
(311,748)
108,374
200,884
92,510
Fund Balances - beginning
2,400,490
2,400,490
2,400,490
-
Fund Balances - ending
$ 2,088,742 $
2,508,864 $
2,601,374 $
92,510
Page1103
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Community Redevelopment Special Revenue
Year ended September 30, 2023
Revenues:
Taxes
Investment earnings (loss)
Total revenues
Expenditures:
Current:
Economic environment
Total expenditures
Excess (deficiency) of revenues over expenditures
Net Change in Fund Balances
Fund Balances - beginning
Fund Balances - ending
Actual Amounts,
Budgeted Amounts
Budgetary Basis
Original Final
624,923 $ 653,260
$ 653,261 $
2,000 2,000
14,040
626,923 655,260
667,301
626,923
626,923
506,320
$ 506,320 $
1,162,444
1,162,444
(507,184)
(507,184)
506,320
(864) $
559,010
559,010
108,291
108,291
506,320
614,611 $
Variance with
Final Budget -
Positive
(Negative)
1
12,040
12,041
603,434
603,434
615,475
615,475
615,475
Page1104
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Cemetery
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original
Final
Revenues:
Charges for services
$ 100,000 $
203,300
$ 203,300 $
-
Investment earnings (loss)
2,000
2,000
48,203
46,203
Miscellaneous
2,000
7,502
7,502
-
Total revenues
104,000
212,802
259,005
46,203
Expenditures:
Current:
Physical environment
248,052
452,466
398,885
53,581
Total expenditures
248,052
452,466
398,885
53,581
Excess (deficiency) of revenues over expenditures
(144,052)
(239,664)
(139,880)
99,784
Net Change in Fund Balances
(144,052)
(239,664)
(139,880)
99,784
Fund Balances - beginning
1,548,114
1,548,114
1,548,114
-
Fund Balances - ending
$ 1,404,062 $
1,308,450
$ 1,408,234 $
99,784
Page1105
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Tree Replacement
Year ended September 30, 2023
Revenues:
Investment earnings (loss)
Total revenues
Expenditures:
Current:
Physical environment
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
Actual Amounts,
Budgeted Amounts Budgetary Basis
Original Final
Variance with
Final Budget -
Positive
(Negative)
2,500
2,500
2,500
2,500
(2,500)
(2,500) -
- 322,516
322,516 -
322,516
322,516 -
320,016
320,016 -
$ $ 320,016 $
320,016 $
Page1106
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Police Asset Forfeiture
Year ended September 30, 2023
Revenues:
Intergovernmental
Fines and forfeitures
Investment earnings (loss)
Total revenues
Expenditures:
Current:
Public Safety
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
Actual Amounts,
Budgeted Amounts Budgetary Basis
Original Final
Variance with
Final Budget -
Positive
(Negative)
$ $ 16,200 $ 16,201 $ 1
78,913 - (78,913)
(1) (1)
95,113 16,200 (78,913)
46,790
22,291
24,499
46,790
22,291
24,499
48,323
(6,091)
(54,414)
- 92,727
98,258
5,531
92,727
98,258
5,531
141,050
92,167
(48,883)
$ $ 141,050 $
92,167 $
(48,883)
Page1107
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Debt Service
Year ended September 30, 2023
Variance with
Final Budget -
Actual Amounts,
Positive
Budgeted Amounts
Budgetary Basis
(Negative)
Original
Final
Revenues:
Investment earnings (loss)
$ 750 $
750
$ 8,178 $
7,428
Total revenues
750
750
8,178
7,428
Expenditures:
Current:
Debt Service:
Principal
2,218,385
2,218,385
2,218,410
(25)
Interest and fiscal charges
588,195
588,195
588,178
17
Total expenditures
2,806,580
2,806,580
2,806,588
(8)
Excess (deficiency) of revenues over expenditures
(2,805,830)
(2,805,830)
(2,798,410)
7,420
Other Financing Sources:
Transfers in
2,833,355
2,833,355
2,833,344
(11)
Total other financing sources
2,833,355
2,833,355
2,833,344
(11)
Net Change in Fund Balances
27,525
27,525
34,934
7,409
Fund Balances - beginning
1,862,888
1,862,888
1,862,888
-
Fund Balances - ending
$ 1,890,413 $
1,890,413
$ 1,897,822 $
7,409
Page1108
City of Clermont, Florida
Fiduciary Funds
Year Ended September 30, 2023
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.
Page1109
City of Clermont, Florida
Combining Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2023
Assets:
Cash and cash equivalents $
Receivables:
Accounts receivable
Total receivables
Investments, at fair value:
U.S. Government & other debt securities
Equities
Real estate
Total investments
Total assets
Liabilities:
Refunds payable and other
Pending trade payables
Total liabilities
Net Position:
Net position restricted for pensions $
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benetft
Trust
Trust
Pension Funds
2,872 $
468,081 $
918,106
$ 1,389,059
5,582
575,385
394,388
975,355
5,582
575,385
394,388
975,355
57,856
9,680,731
10,382,371
20,120,958
144,435
17,182,555
17,783,096
35,110,086
-
962,008
962,008
1,924,016
202,291
27,825,294
29,127,475
57,155,060
210,745
28,868,760
30,439,969
59,519,474
_
13,543
5,900
19,443
16,030
17,538
33,568
29,573
23,438
53,011
210,745 $ 28,839,187 $ 30,416,531 $ 59,466,463
Page1110
City of Clermont, Florida
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended September 30, 2023
General
Police
Employees
Officers
Firefighters
Total
Defined
Pension
Pension
Employee
Benetit
Trust
Trust
Pension Funds
Additions:
Contributions:
Employer
$ $
685,294 $
1,025,356
$ 1,710,650
Plan members
304,306
388,764
693,070
State
489,524
394,388
883,912
Total contributions
1,479,124
1,808,508
3,287,632
Investment earnings:
Net increase (decrease) in tair value of
investments
18,592
1,290,354
1,282,462
2,591,408
Interest and dividends
-
711,337
739,579
1,450,916
Other income
128,411
-
128,411
Less: Investment expense
-
(30,445)
(27,645)
(58,090)
Total net investment earnings
18,592
2,099,657
1,994,396
4,112,645
Total additions
18,592
3,578,781
3,802,904
7,400,277
Deductions:
Benefits/distributions
27,416
742,516
275,088
1,045,020
Refund of contributions
-
-
23,158
23,158
Administrative expenses
1,437
87,672
74,333
163,442
Total deductions
28,853
830,188
372,579
1,231,620
Change in Net Position
(10,261)
2,748,593
3,430,325
6,168,657
Net Position Restricted for Pensions
Beginning of Year
221,006
26,090,594
26,986,206
53,297,806
End of Year
$ 210,745 $
28,839,187 $
30,416,531
$ 59,466,463
Page1111
Page1112
STATISTICAL SECTION
Page1113
Page1114
City of Clermont, Florida
Statistical Section
Year Ended September 30, 2023
This part of the City of Clermont's comprehensive annual financial report presents detailed information as a context for
understanding what the information says about the government's overall financial health.
Contents
Page
Financial Trends 116
These schedules contain trend information to help the reader understand how the government's
financial performance and well-being have changed over time.
Revenue Capacity 126
These schedules contain information to help the reader assess the government's most significant
local revenue source, the property tax.
Debt Capacity 131
These schedules present information to help the reader assess the affordability of the government's
current level of outstanding debt and the government's ability to issue additional debt in the future.
Note: there are no limitations placed upon the amount of debt the City of Clermont may issue either
by the City Charter of the City's Code of Ordinances or by Florida Statutes.
Note: The City of Clermont has no general obligation bonds outstanding.
Demographic and Economic Information 138
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government's financial activities take place.
Operating Information 142
These schedules contain service and infrastructure data to help the reader understand how the
information in the government's financial report relates to the services the government provides and
the activities it performs.
Sources: Unless otherwise noted, the information in these schedules are derived from the comprehensive annual reports for the
relevant year.
Page1115
City of Clermont, Florida
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2014
2015
2016
Governmental activities
Net investment in capital assets
$
44,116
$
47,718
$
52,064
Restricted
9,918
9,400
6,402
Unrestricted
5,719
11,649
11,182
Total governmental activities net position
$
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
Page1116
Fiscal Year
2017
2018
2019
2020
2021
2022
2023
$ 31,918
$
35,262
$
40,318
$
44,045
$
51,596
$
58,736
$
70,284
7,815
8,547
9,589
12,479
14,910
18,691
22,153
30,117
27,925
24,795
23,874
21,847
26,252
23,217
$ 69,850
$
71,734
$
74,702
$
80,398
$
88,353
$
103,679
$
115,654
63,131
69,322
66,104
68,310
88,520
86,667
96,286
17,127
16,904
20,362
24,195
25,420
30,273
30,500
26,667
23,959
28,286
28,728
28,555
29,688
28,322
$ 106,925
$
110,185
$
114,752
$
121,233
$
142,495
$
146,628
$
155,108
95,049
104,584
106,422
112,355
140,116
145,403
166,570
24,942
25,451
29,951
36,674
40,330
48,964
52,653
56,784
51,884
53,081
52,602
50,402
55,940
51,539
$ 176,775
$
181,919
$
189,454
$
201,631
$
230,848
$
250,307
$
270,762
Page1117
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Governmental Activities:
General government
Public safety
Physical environment
Transportation/public works
Economic environment
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
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
2014 2015 2016
$ 3,407
$ 3,848
$ 4,157
14,117
14,326
17,381
350
453
788
2,202
2,094
2,185
363
567
209
3,096
4,018
5,460
236
193
355
23,771
25,499
30,535
4,589
4,823
4,719
6,437
6,571
6,866
2,472
3,133
2,925
1,016
1,080
1,142
14,514
15,607
15,652
$ 38,285
$ 41,106
$ 46,187
$ 2,429
$ 2,356
$ 2,914
1,366
1,684
1,574
956
1,317
1,552
939
1,598
1,822
1,718
498
163
7,408
7,453
8,025
5,362
5,726
6,162
5,585
5,809
6,183
2,869
2,917
2,984
881
905
955
-
276
24
2,417
3,219
4,026
17,114
18,852
20,334
$ 24,522
$ 26,305
$ 28,359
Page1118
Fiscal Year
2017
2018
2019
2020
2021
2022
2023
$ 4,240
$ 2,870
$ 5,023
$ 5,678
$ 5,918
$ 5,322
$ 6,476
20,297
20,306
22,104
22,733
23,713
28,925
32,141
805
2,104
863
2,470
2,763
3,773
3,603
2,009
2,255
2,387
1,843
2,264
1,928
2,335
1,197
385
532
847
665
1,337
1,279
4,491
5,752
5,954
3,722
4,044
4,227
3,988
434
839
836
753
687
635
588
33,473
34,511
37,699
38,046
40,054
46,147
50,410
5,199
5,634
6,215
6,425
7,110
9,108
9,784
6,909
6,849
7,373
7,742
8,172
9,176
10,491
2,869
3,073
3,027
3,294
3,467
3,994
3,925
1,190
1,360
1,614
1,901
1,991
2,443
2,552
16,167
16,916
18,229
19,362
20,740
24,721
26,752
$ 49,640
$ 51,427
$ 55,928
$ 57,408
$ 60,794
$ 70,868
$ 77,162
$ 3,180
$ 3,874
$ 3,590
$ 3,377
$ 4,250
$ 4,884
$ 4,538
1,506
1,344
1,593
1,854
1,778
2,211
2,805
2,003
1,697
1,801
2,088
2,319
2,973
3,451
1,456
2,233
2,061
3,307
2,026
14,583
5,089
309
428
625
625
2,206
23
1,535
8,454
9,576
9,670
11,251
12,579
24,674
17,418
6,516
6,461
6,868
7,631
8,466
8,826
10,068
6,507
6,625
6,989
7,573
8,074
8,581
9,321
3,089
3,178
3,264
3,562
3,785
4,020
4,268
1,004
1,378
1,598
1,695
1,783
1,880
1,949
-
-
2,109
1
-
-
-
6,906
4,535
5,316
6,575
22,094
6,313
7,282
24,022
22,177
26,144
27,037
44,202
29,620
32,888
$ 32,476
$ 31,753
$ 35,814
$ 38,288
$ 56,781
$ 54,294
$ 50,306
Page1119
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
2014 2015 2016
$ (16,363) $ (18,045) $ (22,510)
2,600 3,245 4,683
$ (13,763) $ (14,800) $ (17,827)
$ 6,533
$
7,193
$
8,998
126
130
140
2,379
2,502
2,712
2,887
2,953
3,406
6,110
6,645
6,923
104
135
134
-
-
122
374
420
387
439
557
568
18,952
20,535
23,390
198
272
260
2
(1,248)
120
(439)
(557)
(568)
(239)
(1,533)
(188)
$ 18,713
$
19,002
$
23,202
$ 2,589
$
2,490
$
880
2,361
1,712
4,495
$ 4,950
$
4,202
$
5,375
'Business taxes previously reported as General Government Charges for Services
Page1120
Fiscal Year
2017
2018
2019
2020
2021
2022
2023
$ (25,019)
$ (24,935)
$ (28,029)
$ (26,795)
$ (27,477)
$ (21,472)
$ (32,993)
7,855
5,260
5,230
7,675
23,462
4,898
6,136
$ (17,164)
$ (19,675)
$ (22,799)
$ (19,120)
$ (4,015)
$ (16,574)
$ (26,857)
$ 9,748
$
10,747
$
11,945
$
13,090
$
14,354
$
15,350
$
20,882
133
160
157
162
144
145
156
2,619
2,817
3,142
3,203
3,360
3,813
4,536
3,328
3,446
3,873
4,202
4,467
4,684
5,354
7,257
7,864
8,139
8,403
9,969
12,180
12,711
197
458
1,089
632
70
(143)
1,199
86
289
193
-
-
42
94
486
342
352
623
721
433
630
1,367
2,013
2,106
2,177
2,346
294
(594)
25,221
28,136
30,996
32,492
35,431
36,798
44,968
255
379
1,295
953
106
(472)
1,752
24
31
150
29
40
1
-
(1,367)
(2,013)
(2,106)
(2,177)
(2,346)
(294)
594
(1,088)
(1,603)
(661)
(1,195)
(2,200)
(765)
2,346
$ 24,133
$
26,533
$
30,335
$
31,297
$
33,231
$
36,033
$
47,314
$ 202
$
3,202
$
2,968
$
5,697
$
7,954
$
15,326
$
11,974
6,767
3,657
4,568
6,480
21,262
4,133
8,482
$ 6,969
$
6,859
$
7,536
$
12,177
$
29,216
$
19,459
$
20,456
Page1121
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
General Fund
Nonspendable
Restricted
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Assigned
Unassigned
Total all other governmental funds
Fiscal Year
2014
2015
$ 53
$ 1,300 $
312
247
1,202
304
7,669
7,014
$ 9,236
$ 8,865 $
1,064 $
8,604
9,668 $
1,466 $
7,659
9,125 $
2016
548
259
7,886
8,693
1,922
4,310
1,226
7,458
Page1122
Fiscal Year
2017
2018
2019
2020
2021
2022
2023
$ 578
$
641
$
283
$
356
$
453
$
462
$
1,847
266
228
205
359
448
418
25
3
3
18
3,227
1,390
1,368
1,647
7,137
7,104
8,182
7,859
11,617
17,840
22,023
$ 7,984
$
7,976
$
8,688
$
11,801
$
13,908
$
20,088
$
25,542
$ 1,683
$
4
$
7
$
9
$
13
$
10
$
13
5,885
8,361
9,376
12,111
14,450
18,263
22,114
22,621
21,720
18,700
15,476
11,215
11,198
6,417
$ 30,189
$
30,085
$
28,083
$
27,596
$
25,678
$
29,471
$
28,544
Page1123
City of Clermont, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2014
2015
2016
Revenues
Taxes
$ 9,546
$ 10,275 $
12,544
Franchise fees
2,379
2,502
2,712
Licenses and permits
941
788
1,298
Intergovernmental
8,796
8,772
8,790
Charges for services
1,212
1,312
1,652
Fines and forfeitures
589
757
703
Impact fees/special assessments
1,401
1,858
1,702
Investment Earnings
99
131
131
Miscellaneous
915
1,047
1,007
Total revenues
25,878
27,442
30,539
Expenditures
Current:
General government
3,776
3,600
4,070
Public safety
13,571
14,844
17,520
Physical environment
423
744
777
Transportation
1,635
1,635
1,878
Economic environment
365
564
482
Culture and recreation
2,948
3,725
5,038
Capital outlay
9,381
2,695
8,514
Debt service:
Principal
571
884
6,280
Interest
177
198
342
Total expenditures
32,847
28,889
44,901
Excess (deficiency) of revenues
over expenditures
(6,969)
(1,447)
(14,362)
Other financing sources (uses)
Transfers in
9,337
3,857
11,897
Transfers out
(8,788)
(3,323)
(11,329)
Refunding and new bonds issued
6,000
-
10,631
Capital Leases
-
-
Sale of capital assets
-
-
1,321
Total other financing sources (uses)
6,549
534
12,520
Net change in fund balances
$ (420)
$ (913) $
(1,842)
Debt service as a percentage of noncapital
expenditures
3.5%
4.5%
20.2%
Note: Franchise Fees previously reported as Taxes.
**Note: Increase in % due to refunding of 2002 bonds.
Without the refunding the
% would be 3.4 % in 2013
***Note: Increase in % due to refunding of 2013 bonds.
Without the refunding the % would be 4.9% in 2016
Page1124
Fiscal Year
2017
2018
2019
2020
2021
2022
2023
$ 13,208
$ 14,353
$ 15,974
$ 17,453
$ 18,964
$ 20,178
$ 26,392
2,619
2,817
3,142
3,202
3,360
3,813
4,536
1,594
2,249
1,927
1,691
2,259
2,791
2,379
9,054
10,559
10,860
12,342
12,245
26,786
17,848
1,746
2,103
2,188
2,483
2,825
3,213
3,554
358
204
230
241
176
186
153
2,341
1,738
1,959
2,530
2,457
3,269
3,994
192
446
1,065
615
69
(138)
1,171
1,122
971
965
978
1,370
1,051
1,341
32,234
35,440
38,310
41,535
43,725
61,149
61,368
3,911
3,948
4,609
4,892
5,750
5,060
5,962
18,488
19,750
21,618
21,452
24,291
26,626
28,861
869
881
982
2,550
2,748
2,832
3,316
1,687
1,927
2,165
1,546
2,072
1,957
2,179
324
343
372
786
608
618
688
5,996
5,199
6,302
2,901
3,027
3,838
4,972
2,112
4,085
3,846
4,070
4,517
8,400
7,444
1,077
979
2,096
2,147
2,202
2,255
2,310
272
805
829
772
711
655
608
34,736
37,917
42,819
41,116
45,926
52,241
56,340
(2,502)
(2,477)
(4,509)
419
(2,201)
8,908
5,028
26,725
7,697
4,937
5,152
5,179
23,636
7,614
(25,957)
(6,332)
(2,834)
(2,974)
(2,833)
(22,785)
(8,208)
23,670
-
-
-
-
-
919
-
-
-
86
1,000
198
29
44
214
94
24,524
2,365
3,220
2,207
2,390
1,065
(500)
$ 22,022
$ (112)
$ (1,289)
$ 2,626
$ 189
$ 9,973
$ 4,528
4.6%
5.7%
8.3%
8.2%
7.2%
6.2%
6.6%
Page1125
City of Clermont, Florida
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal
Property
Utility
Business
Franchise
Year
Tax
Tax
Tax
Fees
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
2023
20,882
5,354
156
4,536
Taxes Included in Unrestricted Intergovernmental Revenues
Fiscal
Sales
State Revenue
Local Option
Year
Tax
Sharing
Gas Tax
Total
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
2023
3,330
2,012
600
5,942
Total
11,925
12,598
15,053
15,618
16,972
18,918
20,447
22,325
23,992
30,928
Page1126
City of Clermont, Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Total
Estimated
Assessed
Year
Less:
Total Taxable
Direct
Actual
Value as a
Ended
Real*
Personal
Tax Exempt
Assessed
Tax
Taxable
Percentage of
Sep 30
Property
Property
Property
Value
Rate
Value
Actual Value
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%
2023
4,923,776
296,466
1,009,657
4,210,585
5.0600
5,220,242
80.66%
Source: Lake County Property Appraisers Office
* Information on breakdown of residential and commercial property is not available.
Page1127
City of Clermont, Florida
Property Tax Rates
Direct and Overlapping' Governments
Last Ten Fiscal YearS2
(per $1,000 of assessed value)
Direct Rate
Overlapping Rates
City of
Lake
South
Lake
St. Johns
Total
Clermont
Lake County
County
Lake
County
River Water
Direct $
Fiscal
Operating
Operating
Voted
Ambulance
School
Hospital
Water
Management
Overlapping
Year
Millage
Millage
Debt Service
MSTU
District
District 3
Authority
District
Rates
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
2023
5.0600
5.0364
0.0918
0.4629
6.2480
-
0.3083
0.1974
17.4048
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
Page1128
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
2023
2014
Percentage of
Percentage of
Taxable
Total Taxable
Taxable
Total Taxable
Assessed
Assessed
Assessed
Assessed
Taxoaver
Value
Rank
Value
Value
Rank
Value
Advenir@Castle Hill LLC
96,739
1
2.30%
BR Citrus Tower LLC
93,590
2
2.22%
US 27-Clermont LLC
77,264
3
1.83%
Vista at Lost Lake TIC I LLC ET AL
70,602
4
1.68%
Palisades of Clermont, LLC
66,553
5
1.58%
Westdale Sundance LTD
63,663
6
1.51 %
16,336
4
0.92%
South Lake Hospital Inc
57,418
7
1.36%
12,791
7
0.72%
Clermont LL LLC
52,041
8
1.24%
Vista at Lost Lake TIC I LLC ET AL
48,230
9
1.15%
Weingarten 1-4 Clermont Landing LLC
46,299
10
1.10%
13,279
6
0.75%
John P Adams & Ann D Adams Family LP
24,602
1
1.38%
Centennial Citrus Tower LLC
22,487
2
1.26%
MRP Lost Lake LLC
21,439
3
1.20%
IP9 MF Clermont LLC
13,572
5
0.76%
Taylor Morrison of Florida Inc
10,937
8
0.61%
Duke Energy
9,788
9
0.55%
Wal-Mart Stores East LP
9,146
10
0.51%
TOTAL
$ 672,399
15.97%
$ 154,377
8.67%
Source: Lake County Property Appraiser
Page1129
City of Clermont, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Collected within the
Year
Total Tax
Fiscal Year
of the Levy
Collections in
Total Collections to Date
Ended
Levy for
Percentage
Subsequent
Percentage
September
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
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%
2023
21,290
20,201
94.9%
2
20,203
94.9%
Note: Property taxes become due and payable on November 1 st of each year. A four (4) percent
discount is allowed if the taxes are paid in November, with the discount declining by one (1)
percent each month thereafter. Accordingly, taxes collected will never be 100 percent of the
tax levy.
Page1130
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Business -Type
Fiscal
Governmental Activities
Activities
Year
Total
Percentage
Ended
Revenue Financed
Notes
Revenue
Notes
Outstanding
of Personal
Sept
Bonds Purchases
Payable
Bonds
Payable
Debt
Income'
2014
$ $
$ 8,041
$ 14,361
$ -
$ 22,402
2.74%
2015
- -
7,157
13,728
20,885
2.45%
2016
- -
11,509
13,075
24,584
2.40%
2017
- -
34,102
12,403
6,329
52,834
4.87%
2018
- -
33,123
12,268
6,329
51,720
4.22%
2019
- 838
31,109
11,467
5,980
49,394
3.76%
2020
- 754
29,045
10,634
5,621
46,054
3.45%
2021
- 666
26,930
9,779
5,253
42,628
3.03%
2022
- 577
24,766
8,900
4,875
39,118
2.30%
2023
- 485
22,547
8,000
4,487
35,519
1.82%
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics on page 138 for personal income and population data.
Per Capita'
$ 706
646
709
1,476
1,329
1,212
1,040
954
852
748
Page1131
City of Clermont, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2023
(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
$ 100,041
13.87%
$ 13,873
Lake County School District
148,494
12.24%
18,171
Subtotal, overlapping debt
32,044
City of Clermont, direct debt
23,032
100.00%
23,032
Total direct and overlapping debt
$ 55,076
Sources: Lake County 2023 Comprenhesive Annual Financial Report, Lake County School
Board 2022 Comprenhesive Annual Financial Report, and Lake County Property Appraiser's Office
The percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of Lake County's taxable assessed
value that is within the City of Clermont's boundaries and dividing it by Lake County's total taxable
assessed value.
Notes: Overlapping governments are those that coincide, at least in part, with geographic boundaries
of the city. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is borne by the property taxpayers of the City of Clermont. This
process recognizes that, when considering the government's ability to issue and repay long-term
debt, the entire debt burden borne by the property taxpayers should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for
repaying the debt, of each overlapping government.
The City of Clermont has no legal debt margin.
Page1132
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Public Improvement Revenue Refunding Note, Series 2012
Public
Communications
Total Revenue
Fiscal
Service
Service
Half -Cent
Available for
Year
Taxes
Tax
Sales Tax
Debt Service
2014
$ 2,887,161
$ 1,216,076
$ 1,567,249
$ 5,670,486
2015
2,952,785
1,161,566
1,819,909
5,934,260
2016
3,405,642
1,138,032
1,848,294
6,391,968
2017
3,328,087
1,122,258
1,945,237
6,395,582
2018
3,446,407
1,112,440
2,172,025
6,730,872
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
2023
5,353,571
1,642,894
3,330,323
10,326,788
Debt Service
Principal
Interest
Coverage
$ 570,599 $
25,361
9.51
577,959
19,101
9.94
585,609
12,760
10.68
591,692
6,345
10.69
286,141
1,559
23.40
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Public Improvement Revenue Note, Series 2002 was refunded in 2012, this includes the payoff of the original bonds.
** This Note was paid off in fiscal year 2018
Page1133
Fiscal
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Public Improvement Revenue Refunding Note, Series 2016
Public
Service
Taxes
2,887,161
2,952,785
3,405,642
3,328,087
3,446,407
3,872,099
4,201,714
4,466,642
4,684,059
5,353,571
Communications
Service
Tax
$ 1,216,076
1,161,566
1,138,032
1,122,258
1,112,440
1,131,382
1,232,777
1,327,089
1,414,867
1,642,894
Total Revenue
Available for
Debt Service
$ 4,103,237
4,114,351
4,543,674
4,450,345
4,558,847
5,003,481
5,434,491
5,793,731
6,098,926
6,996,465
Debt Service
Principal
Interest
$ -
$ 82,350
305,772
178,337
5,694,228
195,148
255,000
105,635
377,841
99,212
385,511
91,464
393,337
83,558
401,322
75,493
409,469
67,263
417,781
58,866
Coverage
49.83
8.50
0.77
12.34
9.56
10.49
11.40
12.15
12.79
14.68
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Public Improvement Revenue Note, Series 2013 was refunded in 2016, this includes the payoff of the original bonds.
Page1134
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Infrastructure Sales Surtax Revenue Note, Series 2016
Infrastructure
Fiscal
Sales
Year
Surtax
2014
$ -
2015
-
2016
2,964,966
2017
3,115,549
2018
3,397,707
2019
3,474,813
2020
3,603,194
2021
4,182, 726
2022
5,337,140
2023
5,538,802
Debt Service
Principal Interest
230,716
314,809
321,483
328,298
335,258
342,365
349,623
27,466
109,914
104,132
97,387
90,499
83,466
76,283
68,948
Note: Details regarding the city's outstanding debt can be found in the notes
to the financial statements.
Coverage
N/A
N/A
107.95
9.15
8.11
8.30
8.60
9.99
12.75
13.23
Page1135
Infrastructure
Fiscal
Sales
Year
Surtax
2014
$ -
2015
2016
-
2017
3,115,549
2018
3,397,707
2019
3,474,813
2020
3,603,194
2021
4,182,726
2022
5,337,140
2023
5,538,802
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Master Plan Capital Projects Revenue Note, Series 2017
Recreation
Total Revenue
Impact
Stormwater
Sanitation
Available for
Debt Service
Fees
Fees
Fees
Debt Service
Principal
Interest
Coverage
$ -
$ -
$ -
$ -
$
$
N/A
N/A
-
-
-
-
N/A
1,495,242
1,002,859
3,087,701
8,701,352
N/A
1,047,736
1,375,516
3,176,721
8,997,680
749,550
12.00
1,157,840
1,596,720
3,263,253
9,492,626
1,657,000
767,210
3.92
1,529,037
1,695,361
3,550,386
10,377,978
1,701,000
723,053
4.28
1,661,798
1,782,926
3,784,598
11,412,048
1,746,000
677,725
4.71
2,068,218
1,879,538
4,019,607
13,304,503
1,791,000
631,213
5.49
2,299,151
1,948,759
4,267,856
14,054,568
1,839,000
583,479
5.80
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Page1136
City of Clermont, Florida
Pledged -Revenue Coverage
Last Ten Fiscal Years
Water and Sewer Revenue and Refunding Bonds
Water and
Water and
Sewer
Sewer
Net Revenue
Fiscal
Operating
Operating
Available for
Debt Service
Year
Revenues'
Expenses2
Debt Service
Principal
Interest
Coverage
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
17,406,703
11,846,046
5,560,657
879,000
222,280
5.05
2023
19,389,128
13,693,906
5,695,222
900,000
201,110
5.17
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.
2 Operating expense is computed per bond resolution requirements. Depreciation expense is not included.
3 Water and Sewer Revenue Refunding Bonds, Series 2009 was partially refunded in 2017, this includes the payoff of the
original bonds.
Page1137
Fiscal
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Population'
31,745
32,348
34,667
35,807
38,906
40,750
44,301
44,687
45,812
47,456
City of Clermont, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Income
(amounts
expressed in
thousands)
816,926
854,020
1,023,959
1,085,991
1,226,940
1,312,598
1,335,011
1,405,049
1,699,579
1,949,587
Per Capita
Personal
Income
25,734
26,401
29,537
30,329
31,536
32,211
30,135
31,442
37,099
41,082
Median
Agee
41.9
42.1
42.1
41.6
42.3
42.5
42.1
42.2
42.4
42.7
Education
Level in
Years of
Formal
Schooling2
13.7
13.7
13.4
13.3
13.4
13.9
14.0
14.0
14.1
14.3
School
Enrollment3
5,198
8,436
8,712
8,761
8,841
8,745
8,625
9,040
9,668
9,588
Unemploy-
ment Rate
5.6%
4.8%
4.4%
3.1 %
2.7%
2.8%
6.7%
3.7%
2.6%
3.4%
Sources: ' College of Business Administration, University of Florida - Bureau of Economic and Business Research
2 Metro Orlando Economic Development Commission
3 Lake County School Board
4 U.S. Department of Labor, Bureau of Labor Statistics
Page1138
EmDlover
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
2023*
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%
2014
Number
Percentage of
of
Total City
Employees
Rank
Employment
14,278
1,143
1
8.01 %
625
2
4.38%
350
4
2.45%
290
7
2.03%
320
5
2.24%
315
6
2.21 %
523
3
3.66%
212
8
1.48%
210
9
1.47%
185
10
1.30%
4,173
29.23%
Source: Various employers in city limits & Bureau of Labor Statistics (BLS) of the U.S. Department of Labor
* 2023 data not avaiable, and thus presented the same as 2022.
Page1139
Emplover
Kings Ridge South
SLMH
Kings Ridge North
Windy Hill Middle School
Vista at Lost Lake TIC I LLC
Vista at Lost Lake TIC I LLC
Heritage Hills of Clermont HOA
Emerald Lakes of Clermont
SLMH
Clermont LL, LLC
MRP at Lost Lake
Village at East Lake Apartments LTD
Westminster Comm Care Svcs
City of Clermont
Lake County School System
Mister Car Wash
TOTAL
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
2023
2014
Usage
Percentage of
Usage
Percentage of
(thousands
Total City
(thousands
Total City
of gallons)
Rank
Metered Flow'
of gallons)
Rank
Metered Flow
64,594
1
2.14%
228,206
1
9.48%
33,110
2
1.10%
31,720
2
1.32%
24,195
3
0.80%
11,704
4
0.39%
11,606
5
0.39%
10,294
6
0.34%
9,665
7
0.32%
15,259
6
0.63%
9,582
8
0.32%
10,890
8
0.45%
8,956
9
0.30%
8,933
10
0.30%
192,639
6.40%
The City of Clermont had a total metered water flow of approximately 3,012,191 gallons for the
12-month period ending September 30, 2023.
24,009
21,424
16,066
11,158
7,861
6,068
372,661
3
4
5
7
9
10
1.00%
0.89%
0.67%
0.46%
0.33%
0.25%
15.49 %
Page1140
Emplover
Town of Oakland
SLMH
Vista at Lost Lake TIC I LLC
Vista at Lost Lake TIC I LLC
Emerald Lakes of Clermont
Clermont LL, LLC
Windy Hill Middle School
Vineyards at Hammock Ridge
Vineyards at Hammock Ridge
Town of Montverde
Oak Ridge Apartments
MRP at Lost Lake
Lake County Schools
Westminster Comm Care Service
Village at East Lake
City of Clermont
Mister Car Wash
BJ Wholesale Club
TOTAL
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
2023
Usage Percentage of
(thousands Total City
of gallons) Rank Metered Flow
41,825
1
3.34%
33,110
2
2.64%
11,606
3
0.93%
10,294
4
0.82%
9,582
5
0.76%
8,933
6
0.71 %
5,368
7
0.43%
5,098
8
0.41 %
4,478
9
0.36%
3,534
10
0.28%
133,828
10.68%
2014
Usage Percentage of
(thousands Total City
of gallons) Rank Metered Flow
31,744 2 2.85%
0.00%
7,861 7 0.71 %
0.00%
0.00%
42,080
1
3.78%
16,066
3
1.44%
15,367
4
1.38%
14,400
5
1.29%
11,158
6
1.00%
7,502
8
0.67%
5,929
9
0.53%
3,835
10
0.34%
155,942
14.00%
The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,252,894
gallons for the 12-month period ending September 30, 2023.
Page1141
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Function
General Government
Public Safety:
Police
Sworn personnel
Non sworn personnel
Fire
Firefighters
Other personnel
Building Services
Physical Environment
Transportation
Human Services
Culture & Recreation
Water
Sewer
Stormwater
Sanitation
Total
Source: City of Clermont Finance Department.
Full-time Equivalent Employees as of September 30
2014 2015 2016 2017
31.56 36.00 36.00 38.70
61.00
61.00
66.00
70.00
6.00
6.00
6.00
6.00
56.80
56.80
59.80
66.50
5.20
4.20
4.20
6.50
6.00
6.00
7.00
11.30
4.70
7.45
8.70
10.70
12.95
12.85
12.60
14.60
0.00
0.00
0.00
0.00
27.25
33.35
35.35
39.35
30.61
29.35
29.65
29.15
23.88
24.15
26.45
26.95
6.87
6.65
7.75
10.25
17.18
18.20
18.50
21.00
290.00
302.00
318.00
351.00
Page1142
Full-time Equivalent Employees as of September 30
2018 2019 2020 2021 2022 2023
41.45 49.50 48.90 49.90 54.06 53.00
79.00
81.00
86.00
88.00
92.00
95.00
7.00
7.00
7.00
8.00
9.00
10.00
74.20
81.00
81.00
81.00
82.00
80.00
8.80
8.00
8.00
8.00
7.00
5.00
11.55
12.30
13.55
14.55
13.78
13.50
10.70
10.70
9.65
9.65
9.65
10.00
16.60
11.90
11.73
11.73
11.73
14.00
0.00
0.00
0.00
0.00
0.00
0.00
40.60
37.50
39.22
39.22
39.22
33.00
30.45
30.55
32.70
36.70
35.63
36.00
31.25
31.40
32.50
34.50
35.13
48.00
10.10
13.85
13.95
13.95
14.98
16.00
21.30
21.30
20.80
20.80
20.82
25.00
383.00
396.00
405.00
416.00
425.00
438.50
Page1143
City of Clermont, Florida
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
Function
2014
2015
2016
2017
General Government
Municipal boundary (square miles)
15.18
16.65
16.78
16.78
Business Tax Receipts issued
1,955
1,701
1,639
1,633
A/P Checks issued
3,529
2,747
3,276
3,651
Commercial construction (units)
15
16
20
14
- value in thousands
17,288
8,625
42,241
13,302
Residential construction (units)
572
323
740
433
- value in thousands
62,117
55,178
103,423
87,873
Multi Family construction (units)
-
-
-
-
- value in thousands
-
-
-
-
Public Safety:
Police
Auto accidents
1,357
1,573
1,909
1,909
Physical arrests
631
652
589
593
911 calls received
6,643
7,618
6,397
6,809
Evidence processed (pieces)
2,384
989
674
1,165
Parking violations
379
144
181
385
Traffic violations
4,623
6,879
7,421
6,713
Fire
Volunteer firefighters
-
-
-
-
Fire inspections completed
3,766
3,813
4,468
2,586
Emergency calls answered
4,127
4,202
6,001
6,828
Non -emergency calls answered
987
523
806
925
Water
Residential accounts
19,670
13,242 •
13,561
14,339
Commercial accounts
1,234
1,211
1,220
1,235
Annual water usage
(thousands of gallons)
2,406,183
2,521,397
2,572,852
2,743,657
Sewer
Residential accounts
13,718
13,578
13,860
14,619
Commercial accounts
1,055
1,074
1,091
1,106
Sources: Various government departments.
. Decrease in accounts due to software conversion combining
multi -metered services
Page1144
Fiscal Year
2018
2019
2020
2021
2022
2023
17.12
19.00
19.10
19.20
19.34
19.78
1,623
1,585
1,572
1,968
1,752
1,375
3,872
3,859
3,543
3,846
3,905
4,452
20
15
10
16
26
32
42,042
30,862
13,695
52,737
61,307
65,156
387
377
428
591
673
420
104,394
87,927
92,541
110,912
134,829
69,691
-
-
-
-
301
210
-
-
-
-
31,945
30,047
1,802
2,082
1,780
1,673
2,209
2,093
569
663
632
590
548
816
7,943
9,185
8,703
9,880
9,124
10,969
1,040
1,821
1,331
1,787
2,107
2,250
147
101
319
403
522
696
4,676
4,790
4,340
3,394
3,576
3,448
2,203
2,493
2,445
3,112
2,154
3,338
5,689
5,367
6,199
6,549
6,977
7,633
989
1,493
814
1,593
1,847
1,222
14,805
15,311
15,882
16,283
16,919
17,474
1,498
1,283
1,283
1,344
1,353
1,379
2,687,665
2,816,071
3,090,626
3,568,993
3,789,411
4,210,416
15,198
15,669
16,330
17,670
19,160
19,721
1,107
1,126
1,135
1,342
1,425
1,455
Page1145
Function
General Government
Public Safety:
Police
Police stations
Patrol units
Fire
Fire department facilities
Staffed fire stations
Fire hydrants
Fire apparatus
Staffed fire apparatus
ALS non -transport units
Transportation
Streets paved (miles)
Streetlights
Culture & Recreation
Number of parks
Parks acreage
Scenic linear trail (miles)
Tennis courts
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
2014 2015 2016
2017 2018
1
1
1
1
1
57
79
95
98
104
4
3
4
5
5
3
3
4
4
4
2,146
2,200
2,646
2,646
2,646
8
12
6
7
9
5
3
6
6
7
4
3
1
6
6
191.52
202.38
210.00
210.60
210.60
3,127
3,158
3,160
1,309
1,309
23
23
23
24
24
349.5
378.0
443.9
443.9
443.9
5.7
5.7
7.5
7.5
8.0
9
9
9
9
9
5
10
11
11
9
1
1
1
1
1
222.75
230.28
229.44
297.00
297.81
161.25
167.60
168.57
220.00
224.00
133.70
48.22
47.63
47.56
48.36
Page1146
Fiscal Year
2019 2020 2021 2022 2023
1
1
1
1
1
106
107
106
116
116
5
5
5
5
5
4
4
4
4
4
2,456
2,456
2,456
2,475
2,503
9
9
9
9
9
7
7
7
7
7
7
7
9
9
9
210.60
210.60
210.60
202.00
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
6
9
9
9
9
9
1
1
1
1
1
331.86
334.98
354.16
334.98
366.71
236.34
238.58
254.61
238.58
250.85
50.38
50.38
51.46
50.38
53.57
Page1147
City of Clermont, Florida
Impact Fees Collected
Last Ten Fiscal Years
Recreation
Police
Fire
Water
Sewer
Total
Fiscal
Impact
Impact
Impact
Impact
Impact
Impact
Year
Fees
Fees
Fees
Fees
Fees
Fees
2014
$ 859,387
$ 278,653
$ 262,582
$ 839,836
$ 1,576,921
$ 3,817,379
2015
1,977,768
339,370
440,443
747,183
2,082,252
5,587,016
2016
1,092,976
266,100
343,111
1,156,797
2,160,897
5,019,881
2017
1,495,242
382,728
463,227
1,245,792
2,767,003
6,353,992
2018
1,047,736
300,132
389,730
1,063,577
2,588,642
5,389,817
2019
1,157,840
350,125
450,801
1,152,077
3,139,024
6,249,867
2020
1,529,037
436,670
564,447
1,620,076
4,954,474
9,104,704
2021
1,661,798
359,313
435,991
1,374,379
2,658,918
6,490,399
2022
2,068,218
515,142
685,604
2,178,315
4,112,658
9,559,937
2023
2,299,151
732,566
961,910
1,532,237
3,869,193
9,395,057
Page1148
OTHER REPORTS
Page 1149
Page 1150
I 1
McDirmit Davis
1800 Pembrook Drive, Suite 170
Orlando, Florida 32810
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, the aggregate discretely presented
component units, 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, 2023, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements and have issued our report thereon dated November 18, 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. Given these
limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
ML 23-01 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, and delays in the prior yearend audit, account reconciliations were not performed timely during the fiscal year. 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. We noted
improvement during the current fiscal year and noted that reconciliations were completed prior to the audit.
Management Response
As noted, the city has improved the timeliness of account reconciliations. Additional procedure improvements, staffing changes,
and staffing stability have enabled continued improvement during the current fiscal year. The Finance Department is well -
positioned to meet these procedures in a regular and timely manner going forward.
the trusted partner
Page1151
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 results 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 23-02- 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 prior years, 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 FYE 2018 audit was the most recent audit completed prior to the state required deadline. Completion of this FYE 2023 audit
marks the third audit completed during the past 18 months. The Finance Department is well -positioned to meet the deadline for
FYE 2024.
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
November 18, 2024
Page1152
McDirmit Davis
I J
1800 Pembrook Drive, Suite 170
Orlando, Florida 32810
407-843-5406
www.mcdirmitdavis.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT
AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND
CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
Honorable Mayor and City Council
City of Clermont, Florida, Florida
Report on Compliance for Each Major Federal Program and State Project
Opinion on Each Major Federal Program and State Project
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, and the requirements described in the Department of Financial Services
State Projects Compliance Supplement, and Chapter 10.550, Rules of the Auditor General, that could have a direct and material
effect on each of the City's major federal programs and state projects for the year ended September 30, 2023. The City's major
federal programs and state projects 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 types of compliance requirements referred to above that could
have a direct and material effect on each major federal program and state project for the year ended September 30, 2023.
Basis for Opinion on Each Major Federal Program and State Project
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), and Chapter 10.550, Rules of the Auditor General. 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 and state project. 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, rules and provisions of
contracts or grant agreements applicable to the City's federal programs and state projects.
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, the Uniform Guidance, and Chapter 10.550, Rules of the
Auditor General 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 and state project 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.
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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.
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 and Chapter 10.550, Rules of the Auditor General, 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 or state project 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 or state project 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 or state project 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 have
not been 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 and Chapter 10.550, Rules of
the Auditor General. Accordingly, this report is not suitable for any other purpose.
WI IM f
Orlando, Florida
November 18, 2024
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City of Clermont, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance
Year Ended September 30, 2023
Award Type
Assistance
Grantor
Listing/
Pass -Through Grantor
CSFA
Agency or Pass -through
Grantor program title
Number
Entity Grant Number
Expenditures
Federal Awards
U.S. Department of Justice
Bulletproof Vest Partnership
16.607
$ 1,888
Equitable Sharing Program
16.922
2,141
State of Florida, Department of Law Enforcement
Edward Byrne Memorial Justice Assistance Grant Program
16.738
8C074
6,608
Edward Byrne Memorial Justice Assistance Grant Program
16.738
8C201
13,544
State of Florida, Office of the Attorney General
Victims of Crime Act
16.575
VOCA-2021-CLERMONT
14,171
U.S. Department of Transportation
State of Florida, Department of Transportation
State and Community Highway Safety (Highway Safety Cluster)
20.600
G2G67
44,712
U.S. Department of Treasury
Coronavirus State and Local Fiscal Recovery Funds *
21.027
2,875,340
Executive Office of the President - Office of National Drug Control Policy
Seminole County Sheriffs Office
High Intensity Drug Trafficking Areas Program
95.001
G23CF0008A
8,270
U.S. Department of Homeland Security
State of Florida, Division of Emergency Management
Disaster Grants - Public Assistance (Hurricane Ian)
97.036
Z3386
37,798
Assistance to Firefighters Grant
97.044
EMW-2021-FG-08137
4,657
Total federal awards
$ 3,009,129
State Awards
Florida Executive Office of the Governor
Urban Search and Rescue Sustainment Program
31.078
T0242
12,000
Florida Department of Environmental Protection
Statewide Water Quality Restoration Projects *
37.039
LPA0153
3,000,000
Florida Department of State and Secretary of State
General Program Support - Cultural and Museum Grants
45.061
23.c.ps.180.286
150,000
Total state awards
$ 3,162,000
* Denotes a major program or project
See accompanying Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance.
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City of Clermont, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Financial Assistance
Year Ended September 30, 2023
NOTE 1 BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal
and state grant award activity of the City of Clermont, Florida (the City) under programs and projects of the federal and state
government for the year ended September 30, 2023. 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), and Section 215.97, Florida Statues. 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, 2023, even if grant or loan was received subsequent to that date.
Federal and state expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.550,
Rules of the Auditor General 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
Indirect cost rate is dictated by its federal contract terms. The 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance is not in effect nor is available under its contracts.
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City of Clermont, Florida
Schedule of Findings and Questioned Costs
Federal Programs and State Projects
Year Ended September 30, 2023
Section I - Summary of Independent Auditor's Results:
Financial Statements
Type of auditors' report issued: Unmodified
Internal control over financial reporting:
• Material weakness identified? Yes X No
• Significant deficiency identified X Yes _ None reported
Noncompliance material to financial
Statements noted? X Yes No
Federal Awards and State Projects
Type of auditors' report issued on compliance for major Unmodified
federal programs and state projects:
Internal control over major federal programs and state
projects:
• Material weakness identified? Yes X No
• Significant deficiency identified Yes X None reported
Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a) of the Uniform Guidance Yes X No
and Chapter 10.550?
Identification of Major Federal Programs and State Projects
Assistance Listing No. 21.027
CSFA No.
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 and State Project Findings and
Questioned Costs:
Section IV - Federal Award and State Project Summary
Schedule of Prior Year Findings:
37.039
Federal
$750,000
X Yes
None
None
Coronavirus State and Local Fiscal Recovery
Funds
Statewide Water Quality Restoration Projects
State
$750,000
No
There were no audit findings for the year ended
September 30, 2022.
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McDirmit Davis
I MJ
MANAGEMENT LETTER
Honorable Mayor and City Council
City of Clermont, Florida
1800 Pembrook Drive, Suite 170
Orlando, Florida 32810
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,
2023, and have issued our report thereon dated November 18, 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 Report on Internal Control over Compliance;
Schedule of Findings and Questioned Costs; and Independent Auditor's Report on an examination conducted in accordance with
AICPA 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 November 18, 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 # 2021-22 FY Finding # 2020-21 FY Finding #
ML 23-01 ML 22-01 ML 21-01
ML 23-02 ML 22-02 ML 21-02
ML 23-03 ML 22-03 NIA
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
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to 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 to identify of the specific condition(s) met. In connection with our audit, we determined that
the City of Clermont, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment
procedures for the City. It is management's responsibility to monitor the City of Clermont, Florida's financial condition, and our
financial condition assessment was based in part on representations made by management and the review of financial information
provided by same.
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Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial
management. In connection with our audit, we did not have any such recommendations.
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 warrants the attention of those charged with governance. In connection with our audit, we noted on finding of
noncompliance.
ML23-03 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. The former finance director left in August
2023, and documentation of investment CPE was not maintained. 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.
Orlando, Florida
November 18, 2024
Page1159
1800 Pembrook Drive, Suite 170
McDirmit Davis Orlando, Florida 32810
407-843-5406
www.mcdirmitdavis.com
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, 2023. 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, 2023, except for the noncompliance disclosed in management comment 23-03.
Orlando, Florida
November 18, 2024
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