HomeMy WebLinkAboutComprehensive Annual Financial Report 2024-2025
CITY OF CLERMONT, FLORIDA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2025
Prepared by:
Finance Department
City of Clermont, Florida
Table of Contents
INTRODUCTORY SECTION
Table of Contents
Transmittal Letter. .......................................................................................................... 1
Certificate of Achievement for Excellence in Financial Reporting………………………………. 5
City Officials .................................................................................................................... 6
Organization Chart. ......................................................................................................... 7
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................................ 8
Management’s Discussion and Analysis ......................................................................... 12
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position ........................................................................................... 25
Statement of Activities ................................................................................................ 27
Fund Financial Statements
Balance Sheet – Governmental Funds ......................................................................... 28
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position ............................................................................. 29
Statement of Revenues, Expenditures and Changes
in Fund Balances – Governmental Funds ................................................................. 30
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities ............... 32
Statement of Net Position – Proprietary Funds .......................................................... 33
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds ..................................................................................................... 35
Statement of Cash Flows – Proprietary Funds ............................................................ 36
Statement of Fiduciary Net Position – Fiduciary Funds ............................................... 38
Statement of Changes in Fiduciary Net Position – Fiduciary Funds ............................ 39
Notes to Financial Statements ........................................................................................ 40
Required Supplementary Information
Budgetary Comparison Schedule – General Fund ......................................................... 84
Budgetary Comparison Schedule – Infrastructure Special Revenue Fund ..................... 86
Budgetary Comparison Schedule – Building Services Special Revenue Fund ................ 87
Budgetary Notes to Required Supplementary Information ........................................... 88
Schedule of Changes in Net Pension Liability and Related Ratios –
General Employees ........................................................................................................ 89
Schedule of Contributions and Investment Returns – General Employees………… ........ 91
Schedule of Changes in Net Pension Liability and Related Ratios – Police .................... 92
Schedule of Contributions and Investment Returns – Police …………………. .................... 94
Schedule of Changes in Net Pension Liability and Related Ratios – Fire ........................ 95
Schedule of Contributions and Investment Returns – Fire…………………. ........................ 97
Schedules of Methods and Assumptions-Pension Funds……………………………… .............. 98
Schedule of Changes in Total OPEB Liability and Related Ratios .................................... 99
City of Clermont, Florida
Table of Contents (Continued)
Other Supplementary Information
Combining Financial Statements
Balance Sheet – Nonmajor Governmental Funds ....................................................... 100
Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds ............................................................................... 101
Budgetary Comparison Schedule – ARPA Fund ............................................................. 102
Budgetary Comparison Schedule – Capital Projects Fund .............................................. 103
Budgetary Comparison Schedule – Debt Service Fund……. ............................................ 104
Budgetary Comparison Schedule – Recreation Impact Fee Special Revenue Fund ....... 105
Budgetary Comparison Schedule – Police Impact Fee Special Revenue Fund ............... 106
Budgetary Comparison Schedule – Fire Impact Fee Special Revenue Fund ................... 107
Budgetary Comparison Schedule – Community Redevelopment Special Revenue Fund 108
Budgetary Comparison Schedule – Cemetery Special Revenue Fund ............................ 109
Budgetary Comparison Schedule – Tree Replacement Special Revenue Fund .............. 110
Budgetary Comparison Schedule – Police Asset Forfeiture Special Revenue Fund ....... 111
STATISTICAL SECTION. ................................................................................................... 112
Financial Trends
Net Position by Component......................................................................................... 114
Changes in Net Position ............................................................................................... 115
Fund Balance – Governmental Funds .......................................................................... 117
Changes in Fund Balances – Governmental Funds ...................................................... 118
Revenue Capacity
Governmental Activities Tax Revenues by Source ...................................................... 119
Assessed Value and Estimated Actual Value of Taxable Property .............................. 120
Property Tax Rates – Direct and Overlapping Governments ...................................... 121
Principal Property Taxpayers ....................................................................................... 122
Property Tax Levies and Collections ............................................................................ 123
Debt Capacity
Ratios of Outstanding Debt by Type ............................................................................ 124
Direct and Overlapping Governmental Activities by Debt .......................................... 125
Pledged-Revenue Coverage ......................................................................................... 126
Demographic Information
Demographic and Economic Statistics ......................................................................... 131
Principal Employers ..................................................................................................... 132
Principal Water Customers .......................................................................................... 133
Principal Sewer Customers .......................................................................................... 134
Operating Information
Full-time Equivalent City Government Employees by Function .................................. 135
Operating Indicators by Function/Program ................................................................. 136
Capital Asset Statistics by Function/Program .............................................................. 137
Impact Fees Collected .................................................................................................. 138
City of Clermont, Florida
Table of Contents (Continued)
REPORTS ON INTERNAL CONTROL AND COMPLIANCE MATTERS
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 ......... 139
Independent Auditor’s Report on Compliance for Each Major Federal Program
Report on Internal Control Over Compliance; and Report on the Schedule of
Expenditures Federal Awards Required by the Uniform Guidance ......................... 141
Schedule of Expenditures of Federal Awards ................................................................. 144
Notes to the Schedule of Expenditures of Federal Awards ............................................ 145
Schedule of Findings and Questioned Costs ................................................................... 146
Independent Auditor’s Management Letter ................................................................... 148
Independent Auditor’s Report on Compliance with Local Government
Investment Policies ...................................................................................................... 152
Letter of Transmittal
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City of Clermont, Florida
Certificate of Achievement for Excellence
in Financial Reporting
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City of Clermont, Florida
City Council and Officials
As of September 30, 2025
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City of Clermont, Florida
Organizational Chart
As of September 30, 2025
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INDEPENDENT AUDITOR’S
REPORT
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INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and Members of the City Council
City of Clermont, Florida
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of
Clermont, Florida (hereafter the City), as of and for the year ended September 30, 2025, 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 financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City, as of September 30, 2025, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. 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
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.
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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 generally
accepted auditing standards and Government Auditing Standards 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 in accordance with generally accepted auditing standards and Government
Auditing Standards, 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.
• 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 judgment, 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.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, and other required
supplementary information, as listed in the table of contents, 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 of Clermont, Florida’s basic financial statements. The accompanying
combining nonmajor fund financial statements, budgetary comparison schedules, other
supplementary information as listed in the table of contents, and schedule of expenditures of federal
awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for
purposes of additional analysis and are not a required part of the basic 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 combining
nonmajor fund financial statements, budgetary comparison schedules and other supplementary
information as listed in the table of contents, and the schedule of expenditures of federal awards are
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 included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic 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 basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic 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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 31, 2026 on our consideration of the City of Clermont, Florida’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 the City’s 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.
CARR, RIGGS & INGRAM, L.L.C.
Orlando, Florida
March 31, 2026
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MANAGEMENT’S DISCUSSION
&
ANALYSIS (MD&A)
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City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
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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, 2025. 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 1 through 4 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, 2025 by $358,179,362 (net position). Of this amount
$100,733,339 (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 $33,970,030 (or 10.5%) during fiscal year 2025. Among
the factors were an increase in operating grants and contributions within governmental
activities, as well an increase in charges for services partly due to continued increases in
customers served.
• At September 30, 2025, the City of Clermont’s governmental funds reported combined ending
net position of $129,756,360 an increase of $9,423,151 from the previous fiscal year. Business-
type activities reported an ending net position of $228,423,002 an increase of $24,546,879 from
the previous year.
• The General Fund, the City’s primary operating fund, reported an unassigned fund balance of
$36,605,499 which represents 40.7% of total General Fund total 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 required supplementary information, other supplementary
information, and an unaudited statistical section 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 25 to
27 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.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
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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 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 Agency).
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.
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.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
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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 (page 84), the
Infrastructure Special Revenue Fund (page 86), and the Building Service Special Revenue Fund (page
87) 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 28-30 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 33-36 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 37-40 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 40-83 of this report.
Other Information
The combining statements referred to earlier in connection with other governmental and proprietary
funds are presented in Other Supplementary Information. Combining and individual fund statements
and schedules can be found on pages 100-111 of this report.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
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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.
2025 2024 2025 2024 2025 2024
Assets
Current and other assets 110,369,830$ 106,319,857$ 84,285,597$ 70,258,845$ 194,655,427$ 176,578,702$
Capital assets 99,022,856 98,118,792 162,882,240 154,821,517 261,905,096 252,940,309
Total assets 209,392,686 204,438,649 247,167,837 225,080,362 456,560,523 429,519,011
Deferred outflows
of resources 4,807,405 8,233,905 605,187 750,382 5,412,592 8,984,287
Liabilities
Other liabilities 10,958,993 13,935,591 6,099,307 7,639,781 17,058,300 21,575,372
Long-term liabilities 57,348,887 63,176,335 12,277,500 13,603,730 69,626,387 76,780,065
Total liabilities 68,307,880 77,111,926 18,376,807 21,243,511 86,684,687 98,355,437
Deferred inflows
of resources 16,135,851 15,227,418 973,215 711,110 17,109,066 15,938,528
Net Position
Net investment in
capital assets 50,440,069 60,015,650 152,536,793 142,093,556 202,976,862 202,109,206
Restricted 40,205,030 32,015,263 14,264,131 27,867,176 54,469,161 59,882,439
Unrestricted (deficit)39,111,261 28,302,297 61,622,078 33,915,391 100,733,339 62,217,688
Total net position 129,756,360$ 120,333,210$ 228,423,002$ 203,876,123$ 358,179,362$ 324,209,333$
Governmental Activities Business-type Activities Total
The City’s total net position at September 30, 2025 was $358,179,362. Of the City’s total net position
$202,976,862 (56.7%) reflects its investment in capital assets (e.g., land, buildings, improvements,
infrastructure and equipment) less any related debt used to acquire those assets that is still outstanding.
The City uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City of Clermont’s investment in its capital assets is reported
net of related debt, it should be noted that the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s total net position, $54,469,161 (15.2%) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of the City’s total net
position, $100,733,339 (28.1%) 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 $33,9790,029 during the current fiscal year. Major components of
this increase are discussed in the Governmental and Business-Type Activities sections to follow.
Restricted reserves represent the accumulation of impact fee funds for upcoming and ongoing capital
projects.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
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The following is a summary of the City’s governmental and business-type activities for fiscal year 2024-
25, including revenues and expenses, with a comparison to the prior year. For more detail see the
Statement of Activities.
2025 2024 2025 2024 2025 2024
Revenues
Program revenues:
Charges for Services 11,965,787$ 11,486,777$ 40,949,428$ 40,591,991$ 52,915,215$ 52,078,768$
Operating grants and
contributions 3,953,646 1,763,258 - - 3,953,646 1,763,258
Capital grants and
contributions - - 5,655,979 21,996,089 5,655,979 21,996,089
General revenues:
Property taxes 27,775,342 24,868,557 - - 27,775,342 24,868,557
Business taxes 2,099,327 2,048,547 - - 2,099,327 2,048,547
Franchise fees 5,083,997 4,329,889 - - 5,083,997 4,329,889
Utility taxes 6,681,437 5,532,765 - - 6,681,437 5,532,765
Intergovernmental revenues 13,451,135 13,960,972 - - 13,451,135 13,960,972
Contributions of nonfinancial assets 1,776,563 1,332,253 - - 1,776,563 1,332,253
Investment income and miscellaneous 5,018,983 5,395,167 2,524,004 2,895,887 7,542,987 8,291,054
Proceeds from insurance - - - 263,061 - 263,061
Gain on sale of capital assets (166,629) 105,013 673 1,530 (165,956) 106,543
Total revenues 77,639,588 70,823,198 49,130,084 65,748,558 126,769,672 136,571,756
Expenses
General government 8,144,775 5,802,628 - - 8,144,775 5,802,628
Public safety 36,070,081 34,477,736 - - 36,070,081 34,477,736
Physical environment 4,404,003 4,003,890 - - 4,404,003 4,003,890
Transportation 3,611,521 2,380,983 - - 3,611,521 2,380,983
Econcomic environment 165,089 132,436 - - 165,089 132,436
Culture and recreation 4,365,885 4,412,068 4,365,885 4,412,068
Interest on long-term debt 1,549,829 1,016,289 - - 1,549,829 1,016,289
Water - - 13,302,965 11,826,344 13,302,965 11,826,344
Sewer 12,605,078 11,531,345 12,605,078 11,531,345
Sanitation - - 5,642,665 4,703,790 5,642,665 4,703,790
Stormwater - - 2,937,751 2,837,311 2,937,751 2,837,311
Total expenses 58,311,183 52,226,030 34,488,459 30,898,790 92,799,642 83,124,820
Increase (decrease) in net
position before transfers 19,328,405 18,597,168 14,641,625 34,849,768 33,970,030 53,446,936
Transfers (9,905,254) (13,917,472) 9,905,254 13,917,472 - -
Change in net position 9,423,151 4,679,696 24,546,879 48,767,240 33,970,030 53,446,936
Net position - beginning 120,333,209 115,653,514 203,876,123 155,108,883 324,209,332 270,762,397
Net position - ending 129,756,360$ 120,333,210$ 228,423,002$ 203,876,123$ 358,179,362$ 324,209,333$
Governmental Activities Business-type Activities Total
Governmental Activities
Governmental activities increased the City of Clermont’s net position by $9,423,151. While revenues
increased 8.8% to $77.6 million, expenses increased at a faster 10.4% rate to a total of $58.3 million.
Nevertheless, the position change in net position can partly be attributed to an increase in operating
grants and contributions, as well as solid growth in general revenues.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
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Revenue growth is primarily due to additional residents and increasing property valuations. For
instance, the Total Taxable Assessed Value of property increased 13.7% or $778 million in FY25.
Despite a reduction in the millage rate, the city still realized an increase in receipts of approximately
$2.9 million. Detail on the history of assessed valuation and millage can be found within the statistical
section. Growth in utility taxes is also related to population increase.
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.
Expenses and Program Revenues -Governmental Activities
Program Revenues Expenses
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
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The following pie chart illustrates the composition of governmental activities revenue and its percent
in relation to total governmental activities revenues.
35.62%
11.26%
5.07%
15.35%
6.44%
17.25%
6.52%
2.28%
Revenues by Source -Governmental Activities
Property Taxes
Other Taxes
Operating Grants and Contributions
Charges for Services
Investment Income & Miscellaneous
Intergovernmental
Franchise Fees
Contributions of nonfinancial assets
Gain on sale of capital assets
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
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Business-Type Activities
Business-type activities increased the City of Clermont’s net position by $24.5 million. The primary
factor resides within capital projects, which included the continuation of a multi-year $55 million
waste-water treatment plant expansion. The increase in charges for services is a continuation of the
trend of increased customers and modified rates for service to support capital projects.
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.
Water Sewer Sanitation Stormwater
Expenses and Program Revenues -Business Type Activities
Program Revenues Expenses
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
- 20 -
The following pie chart illustrates the composition of business-type activities revenue and its percent
in relation to total business-type activities revenues.
83%
12%
5%
Revenues by Source -Business Activities
Charges for Services
Capital Grants and Contributions
Investment Income & Miscellaneous
Gain on sale of capital assets
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, 2025, the City of Clermont’s governmental funds reported combined ending
fund balances of $84,814,249 an increase of $3,978,678 in comparison with the prior year. This
increase is primarily due to additional cash balances, coupled with decreased liabilities in comparison
to the previous year. Of the governmental funds combined ending fund balances, $36,605,499
represents unassigned fund balance, which is available for spending at the City’s discretion. An
additional $3,156,212 (assigned fund balance) has been set aside for planned project expenditures.
Restricted fund balances totaling over $45.0 million include funds required for debt service, as well
as funds collected for specific purposes such as impact fees and community redevelopment. The
remaining fund balance of $4,781,252 is nonspendable to indicate that it is not available for spending
because it has already been committed to prepaids and inventories.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
- 21 -
The General Fund is the chief operating fund of the City of Clermont. As of September 30, 2025, the
fund balance in the General Fund was $44,558,125 an increase of $9,172,537. Reasons for the
increase included increases in ad valorem tax receipts, franchise fees, and charges for services all
surpassing the 2024 amounts. The net change in fund balance was more than the anticipated amount
of the original budget by $9,615,825. Revenues were higher than budgeted by $2,242,322 due to an
increase in revenue categories that included intergovernmental, which was higher due to better than
anticipated state projections on sales and gas taxes. Departmental expenditures came in $4.8 million
less than anticipated, resulting in no use of reserves in 2025. Of the total fund balance in the General
Fund, $36,605,499 (82.2%) 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 71.1% of total General Fund expenditures, while
total fund balance represents 86.5% of that same amount.
The City has a Capital Projects Fund that is considered a major fund and is used to account for the
acquisition of capital assets or construction of major capital projects not being financed by
proprietary funds. Funds have accumulated so projects can be completed on a pay-as-you-go basis.
The fund balance in this fund increased by $226,100 in fiscal year 2025. Interest and investment
income accounts for the entire change, as no project expenditures were incurred during the fiscal
year.
The City has an Infrastructure Fund that is considered a major fund and 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 $622,273 in fiscal year 2025 despite a slight decrease of $57,345 in sales tax
collections.
The purpose of the Debt Service fund is to accumulate resources and account for activity related to
debt service payments. During 2025 the fund balance decreased $11.9 million following the spend-
down of debt issuance proceeds from the previous year.
The Building Services fund accounts for activity related to permits and development. The proceeds
and interest accrued are restricted by law towards activity related to building services. The fund
balance in this fund increased by $779,529.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
- 22 -
The $5.1 million remainder of the change 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 $4,149,909 in fiscal year 2025 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 Tree Replacement Fund and the Police Asset Forfeiture 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.
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, 2025, the City of Clermont’s Water Fund reported total net position of $68,387,154 an increase
of $3,078,971 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, 2025, the City of
Clermont’s Sewer Fund reported total net position of $138,046,448 an increase of $21,034,783 in
comparison with the prior year. This increase in net position was primarily due to ongoing capital
improvement projects, and 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, 2025, the City of Clermont’s Sanitation Fund reported
total net position of $9,451,944, an increase of $772,711 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, 2025, the City of Clermont’s Stormwater Fund reported total net position of $12,258,959, a
decrease of $339,586 in comparison with the prior year. Though lower than the previous year, this
decrease was primarily due to an operating loss of $294,435.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
- 23 -
General Fund Budgetary Highlights
During the year there was a $3,633,078 net increase in appropriations between the original and final
amended budget, representing a 6.4% change.
General Fund budgeted revenues increased by $3,997,900 between the original and final budget.
Significant components of the increase were related to higher than originally anticipated
intergovernmental revenues, investment income, and licenses/permits.
Considering the above noted increases in General Fund budgeted appropriations, actual expenditures
were less than budgeted by $4,828,673.
Capital Assets
The following is a summary of the City of Clermont’s capital assets, net of depreciation for
governmental and business-type activities for the current year with a comparison to the prior year.
Additional information on the City of Clermont’s capital assets can be found in Note 4 of this report.
2025 2024 2025 2024 2025 2024
Land 28,794,922$ 28,494,923$ 1,573,290$ 1,511,807$ 30,368,212$ 30,006,730$
Buildings 25,743,370 27,137,843 4,101,795 4,308,060 29,845,165 31,445,903
Infrastructure 31,506,417 30,356,863 91,749,456 93,800,564 123,255,873 124,157,427
Machinery and Equipment 10,270,158 9,012,921 5,291,586 5,548,736 15,561,744 14,561,657
Intangibles 59,092 69,350 556,041 708,786 615,133 778,136
Construction in Progress 2,648,897 3,046,892 59,610,072 48,848,031 62,258,969 51,894,923
Total 99,022,856$ 98,118,792$ 162,882,240$ 154,725,984$ 261,905,096$ 252,844,776$
Governmental Activities Business-type Activities Total
(net of depreciation)
The City of Clermont’s investment in capital assets for its governmental and business-type activities
as of September 30, 2025, amounts to $261,905,096 (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 $9,060,320. As displayed in the Capital Assets table the primary categories of buildings,
infrastructure, and machinery and equipment all realized an increase in net depreciation totals. This
results from additions exceeding accumulated depreciation and/or disposals during the year.
However, the construction in progress category of capital assets increased 16.6% due to a number of
ongoing projects within the City, including an expansion of the city’s wastewater treatment facility.
City of Clermont, Florida
Management’s Discussion and Analysis
As of September 30, 2025
- 24 -
Debt Administration
The following is a summary of the City’s long-term debt for governmental and business-type activity
for the current year with a comparison to the prior year. Additional information on long-term debt
can be found in Note 4 of this report.
2025 2024 2025 2024 2025 2024
Revenue bonds payable 27,652,000$ 28,152,000$ 6,137,000$ 7,080,000$ 33,789,000$ 35,232,000$
Notes payable 18,322,132 20,774,745 3,679,834 4,088,541 22,001,966 24,863,286
Financed purchases 2,608,655 2,018,110 - - 2,608,655 2,018,110
Total 48,582,787$ 50,944,855$ 9,816,834$ 11,168,541$ 58,399,621$ 62,113,396$
Governmental Activities Business-type Activities Total
As of September 30, 2025, total outstanding debt was $58,399,621. Following the revenue bond
issuance for a public works project the previous year, no new debt issuances were executed during
2025. As a result, due to payment activity during the year, the outstanding debt balances amount
was $3.7 million lower than the previous year.
Next Year’s Budgets and Rates
The fiscal year 2026 budget was approved with the use of $10.5 million in reserves to balance the
General Fund budget. In addition to the purposeful use of reserves for capital purchases, the budget
included the anticipated launch of a new public safety service. For the second year in a row, the City
Council authorized a reduced millage rate of 4.5900. This rate remains one of the lowest of
comparable cities in the region. Taxable assessed value of property in Clermont continued to increase
in 2025, at the rate of 13.7%.
Pursuant to a utility rate study performed by a private consulting firm, the Clermont City Council
adopted a resolution in March 2023 that provided for an increase to water and wastewater rates at
the beginning of the fiscal year. This resolution also provided for inflation-based increases to the
sanitation rates at the start of each fiscal year beginning in October 1, 2018. The increase is based on
the Florida Public Service Commission Annual Price Index and are necessary, primarily to provide
funding for future planned capital projects. The 2026 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.
THIS PAGE INTENTIONALLY LEFT BLANK
BASIC FINANCIAL STATEMENTS
The basic financial statements include the government-wide financial statements,
fund financial statements and notes to the financial statements. The government-
wide financial statements present financial information about the reporting
government as a whole. The fund financial statements present financial
information about major funds individually and non-major funds in the aggregate,
if applicable. The notes to the financial statements present information essential
for a fair presentation of the financial statements not displayed on the face of the
financial statements.
THIS PAGE INTENTIONALLY LEFT BLANK
City of Clermont, Florida
Statement of Net Position
The notes to the financial statements are an integral part of this statement.
- 25 -
Governmental Business-type
September 30, 2025 Activities Activities Total
Assets
Cash and cash equivalents 70,223,433$ 46,614,853$ 116,838,286$
Investments 19,697,137 18,290,721 37,987,858
Accounts receivable, net 1,407,196 3,547,935 4,955,131
Due from other governments 1,529,483 212,615 1,742,098
Other receivables 44,753 - 44,753
Prepaid items and other assets 4,814,380 332,048 5,146,428
Inventory 33,128 26,514 59,642
Lease receivables 3,327,443 - 3,327,443
Interest receivable - 76,904 76,904
Net pension asset 9,292,877 - 9,292,877
Restricted assets
Cash and cash equivalents - 1,731,286 1,731,286
Investments - 13,452,721 13,452,721
Capital assets, net
Nondepreciable 31,443,819 61,183,362 92,627,181
Depreciable 67,579,037 101,698,878 169,277,915
Total assets 209,392,686 247,167,837 456,560,523
Deferred Outflows of Resources
Deferred outflows on refunding - 403,424 403,424
Deferred outflows related to pensions 4,391,308 - 4,391,308
Deferred outflows on OPEB 416,097 201,763 617,860
Total deferred outflows of resources 4,807,405 605,187 5,412,592
Primary Government
(Continued)
City of Clermont, Florida
Statement of Net Position (Continued)
The notes to the financial statements are an integral part of this statement.
- 26 -
Governmental Business-type
September 30, 2025 Activities Activities Total
Liabilities
Accounts payable 3,163,006 2,333,329 5,496,335
Accrued liabilities 1,024,295 216,292 1,240,587
Retainage payable - 932,037 932,037
Interest payable 313,389 80,955 394,344
Unearned revenues 434,483 85,323 519,806
Other liabilities 5,500 - 5,500
Customer deposits 2,435,634 988,428 3,424,062
Non-current liabilities
Due within one year
Compensated absences 333,228 78,686 411,914
Notes payable 2,383,821 419,257 2,803,078
Bonds payable 500,000 965,000 1,465,000
Financed purchases 365,637 - 365,637
Due in more than one year
OPEB liability 9,016,511 3,136,745 12,153,256
Compensated absences 2,999,047 708,178 3,707,225
Notes payable 15,938,311 3,260,577 19,198,888
Bonds payable 27,152,000 5,172,000 32,324,000
Financed purchases 2,243,018 - 2,243,018
Total liabilities 68,307,880 18,376,807 86,684,687
Deferred Inflows of Resources
Deferred inflows related to leases 3,327,443 - 3,327,443
Deferred inflows related to pensions 7,843,091 - 7,843,091
Deferred inflows related to OPEB 4,965,317 973,215 5,938,532
Total deferred inflows of resources 16,135,851 973,215 17,109,066
Net Position
Net investment in capital assets 50,440,069 152,536,793 202,976,862
Restricted for:
Capital improvements 16,648,319 14,264,131 30,912,450
Public safety 7,838,052 - 7,838,052
Housing and urban improvement 4,077,555 - 4,077,555
Economic development 2,037,538 - 2,037,538
Recreation improvement 9,603,566 - 9,603,566
Unrestricted 39,111,261 61,622,078 100,733,339
Total net position 129,756,360$ 228,423,002$ 358,179,362$
Primary Government
City of Clermont, Florida
Statement of Activities
The notes to the financial statements are an integral part of this statement.
- 27 -
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government:
Governmental activities:
General government 8,144,775$ 7,263,556$ 3,828,742$ -$ 2,947,523$ -$ 2,947,523$
Public safety 36,070,081 2,111,320 124,904 - (33,833,857) - (33,833,857)
Physical environment 4,404,003 2,590,911 - - (1,813,092) - (1,813,092)
Transportation 3,611,521 - - - (3,611,521) - (3,611,521)
Econcomic environment 165,089 - - - (165,089) - (165,089)
Culture and recreation 4,365,885 - - - (4,365,885) - (4,365,885)
Interest on long-term debt 1,549,829 - - - (1,549,829) - (1,549,829)
Total governmental activities 58,311,183 11,965,787 3,953,646 - (42,391,750) - (42,391,750)
Business-type activities:
Water 13,302,965 16,829,157 - 741,610 - 4,267,802 4,267,802
Sewer 12,605,078 15,338,181 - 4,914,369 - 7,647,472 7,647,472
Sanitation 5,642,665 6,214,136 - - - 571,471 571,471
Stormwater 2,937,751 2,567,954 - - - (369,797) (369,797)
Total business-type activities 34,488,459 40,949,428 - 5,655,979 - 12,116,948 12,116,948
Total primary government 92,799,642$ 52,915,215$ 3,953,646$ 5,655,979$ (42,391,750) 12,116,948 (30,274,802)
General revenues:
Property taxes 27,775,342 - 27,775,342
Franchise fees based on gross receipts 5,083,997 - 5,083,997
Business taxes 2,099,327 - 2,099,327
Intergovernmental revenues 13,451,135 - 13,451,135
Utility service taxes 6,681,437 - 6,681,437
Miscellaneous and other taxes 2,092,224 - 2,092,224
Interest and investment income 2,926,759 2,524,004 5,450,763
Contribution of nonfinancial asset 1,776,563 - 1,776,563
Gain (loss) on sale of capital assets (166,629) 673 (165,956)
Transfers, net (9,905,254) 9,905,254 -
Total general revenues 51,814,901 12,429,931 64,244,832
Change in net position 9,423,151 24,546,879 33,970,030
Net position, beginning of year 120,333,209 203,876,123 324,209,332
Net position, end of year 129,756,360$ 228,423,002$ 358,179,362$
Program Revenues
Net (Expense) Revenue and Changes in Net Position
For the year ended September 30, 2025 Primary Government
City of Clermont, Florida
Balance Sheet – Governmental Funds
The notes to the financial statements are an integral part of this statement.
- 28 -
Capital Infrastructure Debt Building Services Nonmajor
September 30, 2025 General Projects Special Revenue Service Special Revenue Funds
Assets
Cash and cash equivalents 31,308,728$ 2,121,158$ 5,444,952$ 1,907,167$ 5,378,935$ 17,884,253$ 64,045,193$
Investments 9,753,160 2,714,912 629,583 1,644,843 1,216,287 3,390,095 19,348,880
Accounts receivable, net 1,406,926 - - - 270 - 1,407,196
Interest receivables 26,635 - 1,541 - 1,823 7,165 37,164
Lease receivable 3,327,443 - - - - - 3,327,443
Due from other governments 843,731 - 684,696 - - 1,056 1,529,483
Prepaid items 4,763,286 - 5,500 - 36,538 9,056 4,814,380
Inventory 33,128 - - - - - 33,128
Total assets 51,463,037$ 4,836,070$ 6,766,272$ 3,552,010$ 6,633,853$ 21,291,625$ 94,542,867$
Liabilities and Fund Balances
Liabilities
Accounts payable 2,143,708$ -$ 210,903$ -$ 61,774$ 88,840$ 2,505,225$
Due to other governments 5,180 - - - - 5,180
Accrued liabilities 995,640 - - - 22,352 4,203 1,022,195
Unearned revenue 427,441 - - - - - 427,441
Other liabilities 5,500 - - - - - 5,500
Deposits - - - - 2,435,634 - 2,435,634
Total liabilities 3,577,469 - 210,903 - 2,519,760 93,043 6,401,175
Deferred inflows:
Deferred inflows related to leases 3,327,443 - - - - - 3,327,443
Total deferred inflows 3,327,443 - - - - - 3,327,443
Fund balances
Nonspendable
Inventory 33,128 - - - - - 33,128
Prepaid items 4,763,286 - 5,500 - 36,538 9,056 4,814,380
Restricted for -
Capital improvements - 4,836,070 6,549,869 3,552,010 - 1,710,370 16,648,319
Public safety - - - - - 7,838,052 7,838,052
Housing and urban improvement - - - - 4,077,555 - 4,077,555
Economic development - - - - - 2,037,538 2,037,538
Transportation improvement - - - - - - -
Recreation improvement - - - - - 9,603,566 9,603,566
Assigned 3,156,212 - - - - - 3,156,212
Unassigned 36,605,499 - - - - - 36,605,499
Total fund balances 44,558,125 4,836,070 6,555,369 3,552,010 4,114,093 21,198,582 84,814,249
Total liabilities and fund balances 51,463,037$ 4,836,070$ 6,766,272$ 3,552,010$ 6,633,853$ 21,291,625$ 94,542,867$
Total
Governmental
Funds
City of Clermont, Florida
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position
The notes to the financial statements are an integral part of this statement.
- 29 -
September 30, 2025
Total fund balances - governmental funds 84,814,249$
Governmental capital assets 158,425,469
Less accumulated depreciation 59,402,613 99,022,856
5,872,343
(313,389)
9,292,877
(9,016,511)
Notes payable (45,974,132)
Financed purchases (2,608,655)
Compensated absences (3,332,275) (51,915,062)
4,807,405
(12,808,408)
129,756,360$
Amounts reported for governmental activities in the statement of net position are
different because:
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
OPEB liability are not recognized in the governmental funds, however, they are recorded
in the statement of net position under full accrual accounting.
Net position of governmental activities
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds.
Net pension asset is not a financial resource, and is not reported in the funds.
Deferred outflow of resources related to pension earnings and other post employment
benefits are not recognized in the governmental funds;however,they are recorded in
the statement of net position under full accrual accounting.
Accrued interest payable is not due in the current period, and therefore, is not reported
in the funds.
Deferred inflow of resources related to pension earnings and other post employment
benefits are not recognized in governmental funds;however,they are recorded in the
statement of net position under full accrual accounting.
Long-term liabilities, including compensated absences, are not due and payable in the
current period and, therefore, are not reported in the funds.
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
The notes to the financial statements are an integral part of this statement.
- 30 -
Total
Capital Infrastructure Debt Building Services Nonmajor Governmental
For the year ended September 30, 2025 General Projects Special Revenue Service Special Revenue Funds Funds
Revenue
Taxes 35,678,769$ -$ -$ -$ -$ 877,337$ 36,556,106$
Franchise fees 5,083,997 - - - - - 5,083,997
Intergovernmental 8,380,530 - 5,899,881 - - 3,124,370 17,404,781
Licenses and permits 845,612 - - - 2,375,508 - 3,221,120
Charges for services 3,665,783 - - - 6,561 171,501 3,843,845
Fines and forfeitures 113,231 - - - - 85,360 198,591
Impact fees - - - - - 4,702,231 4,702,231
Interest and investment income 1,453,872 226,100 164,037 335,978 202,648 544,124 2,926,759
Miscellaneous and other taxes 1,909,069 - 4,695 - 714 177,746 2,092,224
Total revenues 57,130,863 226,100 6,068,613 335,978 2,585,431 9,682,669 76,029,654
Expenditures
General government 6,821,906 - - - - 295,400 7,117,306
Public safety 32,126,593 - 10,082 - 1,746,547 24,135 33,907,357
Physical environment 3,403,044 - - - - 181,380 3,584,424
Transportation 1,991,619 - 1,619,902 - - - 3,611,521
Econcomic environment 148,089 - - - - - 148,089
Culture and recreation 3,798,403 - - - - 1,138 3,799,541
Debt service:
Principal 354,389 - - 2,827,813 - 124,800 3,307,002
Interest and other related charges 116,138 - - 1,465,946 - - 1,582,084
Capital outlay 2,755,856 - 1,806,241 - 59,625 1,530,564 6,152,286
Total expenditures 51,516,037 - 3,436,225 4,293,759 1,806,172 2,157,417 63,209,610
Excess (deficiency) of revenues
over (under) expenditures 5,614,826 226,100 2,632,388 (3,957,781) 779,259 7,525,252 12,820,044
(Continued)
City of Clermont, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds (Continued)
The notes to the financial statements are an integral part of this statement.
- 31 -
Total
Capital Infrastructure Debt Building Services Nonmajor Governmental
For the year ended September 30, 2025 General Projects Special Revenue Service Special Revenue Funds Funds
Other Financing Sources (Uses)
Transfers in 4,003,116 - - 4,293,775 - 1,291,907 9,588,798
Transfers out (1,508,372) - (2,010,115) (12,304,591) - (3,670,974) (19,494,052)
Proceeds from sale of capital assets 118,084 - - - 270 - 118,354
Proceeds from financed purchases 944,934 - - - - - 944,934
Total other financing sources (uses)3,557,762 - (2,010,115) (8,010,816) 270 (2,379,067) (8,841,966)
Net change in fund balances 9,172,588 226,100 622,273 (11,968,597) 779,529 5,146,185 3,978,078
Fund balance, beginning of year 35,385,537 4,609,970 5,933,096 15,520,607 3,334,564 16,052,397 80,836,171
Fund balance, end of year 44,558,125$ 4,836,070$ 6,555,369$ 3,552,010$ 4,114,093$ 21,198,582$ 84,814,249$
City of Clermont, Florida
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
The notes to the financial statements are an integral part of this statement.
- 32 -
For the year ended September 30, 2025
Net change in fund balances - total governmental funds 3,978,078$
Amounts reported for governmental activities in the statement of activities
are different because:
(872,498)
32,255
1,776,563
Increase in compensated absences payable (1,353,141)
Newly issued debt (944,934)
Principal paid 3,307,002 2,362,068
1,332,532
Change in net pension asset 5,072,021
Decrease in deferred outflows related to pensions (3,094,077)
Decrease in deferred inflows related to pensions 636,590 2,614,534
Change in OPEB liability 1,235,835
Decrease in deferred outflows related to pensions (332,423)
Increase in deferred inflows related to pensions (1,350,652) (447,240)
9,423,151$
Pension expense is reported in the Statement of Activities, which differs from pension expenditures as reported
in governmental funds.
Change in net position of governmental activities
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.This is the
amount by which depreciation capitalized ($6,739,801)exceeded capital outlay ($6,152,286)and loss on
disposals ($284,983) in the current period.
Some expenses reported in the statement of activities do not provide (or do not require) the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
Interest on long-term debt in the statement of activities differs from the amount reported in the governmental
funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of
current financial resources. In the statement of activities, however, interest expense is recognized as the
interest accrues, regardless of when it is due.
Contributions of capital assets are not reported as revenues in the governmental funds.
Issuance of long-term debt provides current financial resources to governmental funds, while repayment of
principal on long-term debt consumes resources of the governmental funds. Neither transaction, however, has
any effect on the change in net position.
Internal service funds are used by management to charge the costs of certain activities, such as health
insurance, to individual funds. The net revenue (expense) of certain internal service funds is reported with
governmental activities.
Other post employment beneift (OPEB) expense is reported in the Statement of Activities, which differs from
OPEB expenditures as reported in governmental funds.
City of Clermont, Florida
Statement of Net Position -
Proprietary Funds
The notes to the financial statements are an integral part of this statement.
- 33 -
Internal Service
September 30, 2025 Water Sewer Sanitation Stormwater Total Fund
Assets
Current assets
Cash and cash equivalents 16,652,102$ 25,954,376$ 2,681,049$ 1,327,326$ 46,614,853$ 6,178,240$
Investments 9,268,857 6,051,783 2,970,081 - 18,290,721 348,257
Accounts receivable, net 1,257,725 1,441,181 583,590 265,439 3,547,935 -
Due from other governments - - - 212,615 212,615 -
Prepaid items 202,651 68,831 41,618 18,948 332,048 -
Other receivables - - - - - 7,589
Inventory 26,514 - - - 26,514 -
Restricted assets
Cash and cash equivalents 989,057 742,229 - - 1,731,286 -
Investments 2,231,417 11,221,304 - - 13,452,721 -
Total current assets 30,628,323 45,479,704 6,276,338 1,824,328 84,208,693 6,534,086
Noncurrent assets
Interest receivable 28,752 43,006 5,146 - 76,904 -
Capital assets
Non-depreciable 8,322,986 51,790,466 423,750 646,160 61,183,362 -
Depreciable, net 34,458,891 48,660,436 5,333,642 13,245,909 101,698,878 -
Total capital assets, net 42,781,877 100,450,902 5,757,392 13,892,069 162,882,240 -
Total noncurrent assets 42,810,629 100,493,908 5,762,538 13,892,069 162,959,144 -
Total assets 73,438,952$ 145,973,612$ 12,038,876$ 15,716,397$ 247,167,837$ 6,534,086$
Deferred outflows of resources
Deferred outflows on refunding 143,988$ 259,436$ -$ -$ 403,424$ -$
Deferred outflows related to OPEB 56,211 90,398 22,658 32,496 201,763 -
Total deferred outflows of resources 200,199$ 349,834$ 22,658$ 32,496$ 605,187$ -$
Business-type Activities - Enterprise Funds
Governmental
Activities
City of Clermont, Florida
Statement of Net Position -
Proprietary Funds (Continued)
The notes to the financial statements are an integral part of this statement.
- 34 -
Internal Service
September 30, 2025 Water Sewer Sanitation Stormwater Total Fund
Liabilities
Current liabilities
Accounts payable 554,529$ 1,503,115$ 517,760$ 36,422$ 2,611,826$ 374,104$
Accrued payroll and related liabilities 71,616 71,364 46,873 26,439 216,292 2,100
Retainage payable - 932,037 - - 932,037 -
Interest payable 17,527 31,160 7,604 24,664 80,955 -
Accrued liabilities - - - - - -
Current portion of compensated absences 22,495 28,196 6,095 21,900 78,686 -
Current portion of note payable - - 98,754 320,503 419,257 -
Current portion of bond payable 347,400 617,600 - - 965,000 -
Unearned revenue 54,011 31,296 - 16 85,323 7,042
Customer deposits 988,428 - - - 988,428 -
Total current liabilities 2,056,006 3,214,768 677,086 429,944 6,377,804 383,246
Noncurrent liabilities
OPEB liability 867,687 1,246,663 579,197 443,198 3,136,745 -
Compensated absences 202,459 253,760 212,907 39,052 708,178 -
Note payable - - 767,577 2,493,000 3,260,577 -
Bond payable 1,861,920 3,310,080 - - 5,172,000 -
Total noncurrent liabilities 2,932,066 4,810,503 1,559,681 2,975,250 12,277,500 -
Total liabilities 4,988,072$ 8,025,271$ 2,236,767$ 3,405,194$ 18,655,304$ 383,246$
Deferred inflows of resources
Deferred inflows related to OPEB 263,925$ 251,727$ 372,823$ 84,740$ 973,215$ -$
Total deferred outflows of resources 263,925$ 251,727$ 372,823$ 84,740$ 973,215$ -$
Net Position
Net investment in capital assets 40,716,545$ 95,850,621$ 4,891,061$ 11,078,566$ 152,536,793$ -$
Restricted for capital projects 3,692,007 10,572,124 - - 14,264,131 -
Unrestricted 23,978,602 31,623,703 4,560,883 1,180,393 61,343,581 6,150,840
Total net position 68,387,154$ 138,046,448$ 9,451,944$ 12,258,959$ 228,144,505 6,150,840$
Adjustment to reflect the consolidation of internal service fund activities
Related to enterprise funds for prior years 278,497
228,423,002$
Governmental
ActivitiesBusiness-type Activities - Enterprise Funds
City of Clermont, Florida
Statement of Revenues, Expenses and
Changes in Fund Net Position-Proprietary Funds
The notes to the financial statements are an integral part of this statement.
- 35 -
Governmental
Activities
Internal Service
For the year ended September 30, 2025 Water Sewer Sanitation Stormwater Total Fund
Operating Revenues
Charges for services 14,878,247$ 12,557,313$ 6,208,606$ 2,353,519$ 35,997,685$ 7,619,951$
Other charges and fees 357,138 67,154 5,530 1,820 431,642 417,619
Impact fees 1,593,772 2,713,714 - - 4,307,486 -
Intergovernmental - - - 212,615 212,615 -
Total operating revenues 16,829,157 15,338,181 6,214,136 2,567,954 40,949,428 8,037,570
Operating Expenses
Personnel services 3,086,101 2,979,050 2,146,506 1,075,964 9,287,621 77,255
Utilities 911,804 1,288,787 429,439 1,547 2,631,577 -
Dump fees - 410,425 1,061,041 23,561 1,495,027 -
Administrative services - 536,369 270,229 171,094 977,692 -
Repairs and maintenance 3,817,353 501,904 339,262 43,982 4,702,501 -
Professional services 415,062 163,294 104,022 84,145 766,523 59,252
Insurance claims and expenses 188,023 249,407 116,383 63,420 617,233 6,728,664
Other supplies and expenses 1,503,017 985,954 556,053 115,191 3,160,215 -
Depreciation and amortization 3,298,879 5,342,128 596,509 1,283,485 10,521,001 -
Total operating expenses 13,220,239 12,457,318 5,619,444 2,862,389 34,159,390 6,865,171
Operating income 3,608,918 2,880,863 594,692 (294,435) 6,790,038 1,172,399
Nonoperating revenues
Investment income 940,438 1,352,115 201,240 30,211 2,524,004 160,133
Interest expense (82,726) (147,760) (23,221) (75,362) (329,069) -
Proceeds from sale of capital asset 590 83 - - 673 -
Total nonoperating revenues 858,302 1,204,438 178,019 (45,151) 2,195,608 160,133
Income before contributions
and transfers 4,467,220 4,085,301 772,711 (339,586) 8,985,646 1,332,532
Capital contributions 741,610 4,914,369 - - 5,655,979 -
Transfers in - 15,396,920 - - 15,396,920 -
Transfers out (2,129,859) (3,361,807) - - (5,491,666) -
Change in net position 3,078,971 21,034,783 772,711 (339,586) 24,546,879 1,332,532
Net position- beginning of year 65,308,183 117,011,665 8,679,233 12,598,545 203,597,626 4,818,308
Net position - end of year 68,387,154$ 138,046,448$ 9,451,944$ 12,258,959$ 228,144,505$ 6,150,840$
Business-type Activities - Enterprise Funds
City of Clermont, Florida
Statement of Cash Flows-Proprietary Funds
The notes to the financial statements are an integral part of this statement.
- 36 -
Governmental
Activities
Internal Service
For the year ended September 30, 2025 Water Sewer Sanitation Stormwater Total Fund
Operating Activities
Cash received from customers 17,195,135$ 15,150,897$ 6,202,746$ 2,348,970$ 40,897,748$ 8,038,103$
Cash payments to suppliers for goods and services (8,193,250) (5,206,037) (2,690,362) (500,911) (16,590,560) (6,728,125)
Cash payments to employees for services (2,960,303) (2,835,727) (2,005,868) (1,037,659) (8,839,557) (76,468)
Net cash provided by operating activities 6,041,582 7,109,133 1,506,516 810,400 15,467,631 1,233,510
Noncapital Financing Activities
Transfers in from other funds - 15,396,920 - - 15,396,920 -
Transfers out to other funds (2,129,859) (3,361,807) - - (5,491,666) -
Net cash provided by (used in) noncapital financing activities (2,129,859) 12,035,113 - - 9,905,254 -
Capital and Related Financing Activities
Acquisition and construction of capital assets (1,868,926) (15,675,338) (444,868) (460,347) (18,449,479) -
Payments on long-term debt (339,480) (603,520) (96,269) (312,438) (1,351,707) -
Interest paid on long-term debt (85,419) (152,548) (24,060) (78,101) (340,128) -
Proceeds from capital contributions 741,610 4,914,369 - - 5,655,979 -
Net cash used in capital and related financing activities (1,552,215) (11,517,037) (565,197) (850,886) (14,485,335) -
Investing Activities
Sale of investments 2,262,304 3,400,507 618,726 - 6,281,537 69,512
Interest income 947,403 1,362,533 202,486 30,211 2,542,633 160,133
Net cash provided by investment activities 3,209,707 4,763,040 821,212 30,211 8,824,170 229,645
Net increase (decrease) in cash and cash equivalents 5,569,215 12,390,249 1,762,531 (10,275) 19,711,720 1,463,155
Cash and cash equivalents, beginning of year 12,071,944 14,306,356 918,518 1,337,601 28,634,419 4,715,085
Cash and cash equivalents, end of year 17,641,159$ 26,696,605$ 2,681,049$ 1,327,326$ 48,346,139$ 6,178,240$
Business-type Activities - Enterprise Funds
(Continued)
City of Clermont, Florida
Statement of Cash Flows-Proprietary Funds (Continued)
The notes to the financial statements are an integral part of this statement.
- 37 -
Internal Service
Water Sewer Sanitation Stormwater Total Fund
Reconciliation of operating income to
change in net position provided by operating activities
Operating income 3,608,918$ 2,880,863$ 594,692$ (294,435)$ 6,790,038$ 1,172,399$
Adjustment to reconcile operating income to
net cash provided by operating activities:
Depreciation 3,298,879 5,342,128 596,509 1,283,485 10,521,001 -
Change in assets, deferred outflows, liabilities and -
deferred inflows
Accounts receivable (50,271) (187,284) (11,390) (6,369) (255,314) 533
Inventory 1,013 - - - 1,013 -
Prepaid expenses (66,566) 13,822 (3,659) 3,654 (52,749) -
Intergovernmental - - - (212,615) (212,615) -
Deferred outflows related to OPEB 17,486 16,481 25,006 5,537 64,510 -
Accounts payable (1,032,648) (603,810) 352,955 (1,641) (1,285,144) 60,136
Accrued payroll and related liabilities 12,852 12,785 1,310 3,381 30,328 787
Retainage payable (290,521) (562,209) (163,229) - (1,015,959) -
Compensated absences 89,421 108,365 105,685 27,474 330,945 -
Unearned revenue 1,933 30,413 - 16 32,362 (345)
Customer deposits 416,249 - - - 416,249 -
OPEB liability (65,008) (61,268) (92,965) (20,583) (239,824) -
Deferred outflows on refunding 28,798 51,887 - - 80,685
Deferred inflows related to OPEB 71,047 66,960 101,602 22,496 262,105 -
Total adjustments 2,432,664 4,228,270 911,824 1,104,835 8,677,593 61,111
Net cash provided by operating activities 6,041,582$ 7,109,133$ 1,506,516$ 810,400$ 15,467,631$ 1,233,510$
Business-type Activities - Enterprise Funds
Governmental
Activities
City of Clermont, Florida
Statement of Fiduciary Net Position -
Fiduciary Fund
The notes to the financial statements are an integral part of this statement.
- 38 -
Total Pension
September 30, 2025 Trust Funds
Assets
Investments, at fair value 86,696,952$
Receivables 107,676
Total assets 86,804,628
Liabilities
Accounts payable 18,116
Pending trades payable 66,587
Total liabilities 84,703
Net Position
Restricted for pension benefits 86,719,925$
City of Clermont, Florida
Statement of Changes in Fiduciary Net Position -
Fiduciary Fund
The notes to the financial statements are an integral part of this statement.
- 39 -
Total Pension
For the year ended September 30, 2025 Trust Funds
Additions
Contributions
State of Florida 1,135,529$
City 3,683,460
Plan members 996,329
Total contributions 5,815,318
Investment earnings
Interest and dividends, net of investment expense 2,625,903
Other income 16,233
Net appreciation in fair value of investments 5,924,187
Total investment earnings 8,566,323
Total additions 14,381,641
Deductions
Benefit payments including refunds of contributions 1,356,482
Administrative expenses 180,888
Total deductions 1,537,370
Change in net position 12,844,271
Net position restricted for pension benefits, beginning of year 73,875,654
Net position restricted for pension benefits, end of year 86,719,925$
THIS PAGE INTENTIONALLY LEFT BLANK
NOTES TO THE
FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
City of Clermont, Florida
Notes to the Financial Statements
- 40 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Clermont (City) is a political subdivision of the State of Florida founded under the Laws of
Florida 7664 in 1916, which act was superseded by Chapter 29224, Special Acts 1953, and
incorporated under the authority of Chapter 165, Florida Statutes. The legislative branch of the City
is composed of a five-member elected Council. The City Council is responsible for the establishment
and adoption of policy. The execution of such policy is the responsibility of a Council-appointed City
Manager.
Reporting Entity
The City provides a variety of governmental services to residents including public works (streets and
roads), law enforcement, fire protection, parks, transportation, community development and culture
and recreation. Additionally, the City has a business-type operation that offers services associated
with water and sewer utilities, garbage and stormwater management. The financial statements have
been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for
governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial reporting principles.
The accompanying financial statements present the government and its component units, entities
for which the government is considered to be financially accountable. The blended component unit,
although a legally separate entity is, in substance, part of the government’s operations described
below.
The City of Clermont Community Redevelopment Fund:
The City of Clermont created the Community 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 City 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 City 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 (CRA) is presented as a blended component
unit. The CRA is governed by a board of seven with 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 substantially 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.
City of Clermont, Florida
Notes to the Financial Statements
- 41 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes, intergovernmental
revenues, and other nonexchange transactions, are reported separately from business-type
activities, which rely to a significant extent on fees and charges to external customers for support.
Likewise, the primary government is reported separately from certain legally separate component
units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function. 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. 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 are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus
and basis of accounting. Measurement focus indicates the type of resources being measured such as
current financial resources or economic resources. The basis of accounting indicates the timing of
transactions or events for recognition in the financial statements.
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. 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 and timing requirements imposed by the provider have
been met.
City of Clermont, Florida
Notes to the Financial Statements
- 42 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The 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. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance
of long-term debt and acquisitions under leases are reported as other financing sources.
Property taxes, sales 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. Entitlements are recorded as revenues when all eligibility requirements are met,
including any time requirements, and the amount is received during the period or within the
availability period for this revenue source (within 60 days of year-end). Expenditure-driven grants are
recognized as revenue when the qualifying expenditures have been incurred and all other eligibility
requirements have been met, and the amount is received during the period or within the availability
period for this revenue source (within 60 days of year-end). All other revenue items are considered
to be measurable and available only when cash is received by the City.
The proprietary and pension funds are reported using the economic resources measurement focus
and the accrual basis of accounting.
Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated.
The governmental activities column incorporates governmental funds, while business-type activities
incorporate the City’s enterprise funds. 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.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. An exception to this general rule is charges between the City’s water and sewer
function and various other functions of government. Elimination of these charges would distort the
direct costs and program revenues reported for the various functions concerned.
City of Clermont, Florida
Notes to the Financial Statements
- 43 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including its fiduciary funds.
Separate statements for each fund category—governmental, proprietary, and fiduciary—are
presented. The emphasis of fund financial statements is on major governmental and enterprise funds,
each displayed in a separate column. Major individual governmental and enterprise funds are
reported as separate columns in the fund financial statements.
The City reports the following major governmental funds:
The General fund is the City’s primary operating fund. It accounts for all financial resources except
those accounted for in another fund.
The Capital Projects fund accounts for financial resources segregated for the acquisition or
construction of major capital facilities.
The 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.
The Debt Service fund was established to account for the accumulation of resources and payment of
bond principal and interest from governmental resources.
The Building Services Special Revenue 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.
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 City reports the following 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.
City of Clermont, Florida
Notes to the Financial Statements
- 44 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Financial Statements (Continued)
Sanitation fund is used to account for the fiscal activities of the City’s refuse collection and disposal
operation.
Stormwater 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.
The City reports the following fiduciary fund:
The Pension Trust Fund accounts for funds in the same manner as the proprietary funds, using the
same measurement focus and basis of accounting. The trust fund accounts for the accumulation of
resources for pension benefit payments to qualified City police officers, firefighters and general
employees.
During the course of operations, the City has activity between funds for various purposes. Any
residual balances outstanding at year end are reported as due from/to other funds. While these
balances are reported in fund financial statements, certain eliminations are made in the preparation
of the government-wide financial statements. Balances between the funds included in governmental
activities (i.e., the governmental and internal service funds) are eliminated so that only the net
amount is included as internal balances in the governmental activities column.
Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds)
are eliminated so that only the net amount is included as internal balances in the business-type
activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In
fund financial statements these amounts are reported at gross amounts as transfers in/out. While
reported in fund financial statements, certain eliminations are made in the preparation of the
government-wide financial statements.
Transfers between the funds included in governmental activities are eliminated so that only the net
amount is included as transfers in the governmental activities column.
Similarly, balances between the funds included in business-type activities are eliminated so that only
the net amount is included as transfers in the business-type activities column.
City of Clermont, Florida
Notes to the Financial Statements
- 45 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgetary Information
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. A separate City
board meeting is also held to approve the budget. 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, capital projects fund, debt service fund and special revenue
funds on a basis consistent with generally accepted accounting principles, except as described below
under Budgetary Basis of Accounting. 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.
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.
City of Clermont, Florida
Notes to the Financial Statements
- 46 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity
Cash and Cash Equivalents
The City’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
Investments for the City are reported at fair value (generally based on quoted market prices) except
for the position in the State Treasurer’s Investment Pool (Pool). The State Treasurer’s Investment
Pool meets all of the specified criteria in Section I50: Investments to qualify to elect to measure their
investments at amortized cost. Accordingly, the fair value of the City’s position in the pool is equal to
the value of the pooled shares.
Receivables and Payables
Unbilled receivables – An amount for unbilled revenue is recorded in the proprietary funds for
services rendered, but not yet billed as of the end of the fiscal year. The receivable is derived from
the cycle billings generated subsequent to fiscal year end and prorated for usage in September.
Allowance for doubtful accounts – Accounts receivable have been reported net of the allowance for
doubtful accounts. Accounts receivable in excess of 120 days are subject to being considered as
uncollectible.
Lease receivables - The City’s lease receivables are measured at the present value of lease payments
expected to be received during the least term.
Unearned revenue – Unearned revenue recorded on the governmental fund and proprietary fund
balance sheet represents amounts received before eligibility requirements are met.
Interfund Activities and Transactions
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. These receivables and payables are classified as “due from other
funds” or “due to other funds” within the fund financial statements. Long-term borrowings between
funds are classified as “advances to other funds” or “advances from other funds” in the fund financial
statements. These amounts are eliminated in the governmental and business-type activities columns
of the statement of net position, except for any residual balance outstanding.
City of Clermont, Florida
Notes to the Financial Statements
- 47 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity (Continued)
Interfund Activities and Transactions (Continued)
Interfund transactions are reflected as services provided, reimbursements, or transfers. Services
provided, deemed to be at or near market rates, are treated as revenues and expenditures/expenses.
Reimbursements are when a fund incurs a cost, charges the appropriate benefitting fund, and
reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers.
Transfers between governmental or business-type funds are netted as part of the reconciliation to
the government-wide presentation.
Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of expendable
supplies and vehicle repair parts. The cost of such inventories is recorded as expenditures/expenses
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 the government-wide and fund financial statements. The cost of prepaid
items is recorded as expenditures/expenses when consumed rather than when purchased.
Restricted Assets
Certain assets of the City are classified as restricted assets on the statement of net position because
their use is limited by law through constitutional provisions or enabling legislation; or by restrictions
imposed externally by creditors, grantors, contributors or laws or regulations of other governments.
Special restricted asset accounts have been established to account for the sources and uses of these
limited use assets as follows:
Customer and developer deposit accounts – Deposited in non-interest bearing accounts and refunded
upon termination of service with the City and satisfaction of all obligations due.
Capital Assets
Capital assets, which include property, plant, and equipment, 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
government as assets with an initial, individual cost of $5,000 and an estimated useful life in excess
of one year. For infrastructure assets, the same estimated minimum useful life is used.
City of Clermont, Florida
Notes to the Financial Statements
- 48 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity (Continued)
Capital Assets (Continued)
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities), the City chose to include all such items regardless of their acquisition date
or amount. The City was able to estimate the historical cost for the initial reporting of these assets
through back trending (i.e., estimating the current replacement cost of the infrastructure to be
capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or
estimated acquisition year). As the City constructs or acquires additional capital assets each period,
including infrastructure assets, they are capitalized and reported at historical cost. The reported value
excludes normal maintenance and repairs which are essentially amounts spent in relation to capital
assets that do not increase the efficiency of the item or increase its estimated useful life. Donated
capital assets are recorded at their estimated acquisition value at the date of donation.
Land and construction in progress are not depreciated. The other property, plant, equipment, and
infrastructure of the primary government are depreciated using the straight line method over the
following estimated useful lives:
Capital asset classes Lives
Buildings 10-50
Equipment and machinery 3-15
Improvements 15-50
Infrastructure 30-50
Intangible assets 3-15
Deferred outflows/inflows of resources
In addition to assets, the statement of net 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 as deferred outflows of resources, the deferred
outflows related to pensions, deferred outflows related to OPEB and deferred charge on refunding,
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.
City of Clermont, Florida
Notes to the Financial Statements
- 49 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity (Continued)
Deferred outflows/inflows of resources (Continued)
In addition to liabilities, the statement of net 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 two items that qualify for
reporting as deferred inflows of resources. The deferred inflows related to pensions are an aggregate
of items related to pensions, reported in the government-wide statement of net position and
statement of net position-proprietary funds. The City also has deferred inflows related to OPEB
reported in the government-wide statement of net position. The deferred inflows related to leases
are associated with amounts owed to the City, as lessor, by entities leasing the City’s capital assets.
Compensated Absences
The City’s policy permits employees to accumulate earned but unused paid time off benefits, which
are eligible for payment upon separation from government service. The liability for compensated
absences includes salary-related benefits, where applicable. During the current fiscal year, the City
implemented the provisions of Governmental Accounting Standards Board Statement No. 101,
Compensated Absences. GASB Statement No. 101 establishes a single model for accounting and
financial reporting for compensated absences and replaces the previous guidance provided in GASB
Statement No. 16. Under GASB Statement No. 101, compensated absences are recognized as
liabilities to the extent that leave is attributable to past service and meets the criteria for recognition.
The City elected to apply the Days Used Approach, which recognizes a liability for compensated
absences based on the amount of leave that is expected to be used during the subsequent fiscal year,
rather than leave that is earned or accumulated.
Long-term Obligations
In the government-wide financial statements, and proprietary fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental
activities or business-type activities statement of net position.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, pension expense, information about the fiduciary net
position, and additions to/deductions from the plan’s fiduciary net position have been determined
on the same basis as they are reported by the plan. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
City of Clermont, Florida
Notes to the Financial Statements
- 50 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity (Continued)
Other Post-Employment Benefits (OPEB) Liability
For purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to
OPEB, and OPEB expense, information about the fiduciary net position and additions to/deductions
from fiduciary net position have been determined on the same basis as they are reported by the plan.
For this purpose, benefit payments are recognized when due and payable in accordance with the
benefit terms. The City’s proportionate share of OPEB amounts were further allocated to each
participating employer based on the contributions paid by each employer. There are no investments
as this is a pay-as you-go plan and all cash is held in a cash account.
Categories and Classification of Net Position and Fund Balance
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 City’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.
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 provisions of GASB Section 1800, Classification and Terminology, specifies the following
classifications:
Nonspendable fund balance – Nonspendable fund balances are amounts that cannot be spent
because they are either (a) not in spendable form or (b) legally or contractually required to be
maintained intact.
City of Clermont, Florida
Notes to the Financial Statements
- 51 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Categories and Classification of Fund Equity (Continued)
Restricted fund balance – Restricted fund balances are restricted when constraints placed on the use
of resources are either: (a) externally imposed by creditors, grantors, contributors, or laws or
regulations of other governments; or (b) imposed by law through constitutional provisions or
enabling legislation.
Committed 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. City Council (Council) is the highest level of decision-making authority for
the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance.
Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken
(the adoption of another ordinance) to remove or revise the limitation.
Assigned fund balance – Amounts in the assigned fund balance classification are intended to be used
by the City for specific purposes but do not meet the criteria to be classified as committed. The
Council is the only body that may 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.
Unassigned fund balance – Unassigned fund balance is the residual classification for the General
Fund.
Revenues and Expenditures/Expenses
Program revenues - Amounts reported as 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 (including special assessments) that are
restricted to meeting the operational or capital requirements of a particular function or segment. All
taxes, including those dedicated for specific purposes, and other internally dedicated resources are
reported as general revenues rather than as program revenues.
Property taxes - The City levied a millage rate of $4.8800 per $1,000 of assessed value for the fiscal
year ended September 30, 2025. Lake County, Florida bills and receives payment for all ad valorem
taxes levied by the City. Payments are then remitted to the City. All property is assessed according
to its fair market value on January 1 of each year, and at that time a lien is placed on the property for
the taxes. The tax levy of the City is established by the City Council prior to October 1 of each year.
City of Clermont, Florida
Notes to the Financial Statements
- 52 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenues and Expenditures/Expenses
Property Taxes (Continued)
All taxes are billed on November 1 of each year or as soon thereafter as the assessment roll is certified
and delivered to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year
in which they are assessed. 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 not discounted.
Proprietary funds operating and nonoperating revenues and expenses – 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 Utility Fund
are charges to customers for sales and services. 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.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
expenditure of monies are recorded as reservations of budget, is employed as an extension of the
statutory required budgetary process. At year-end, outstanding encumbrances represent material
purchase commitments for goods and services which were ordered, budgeted, and appropriated, but
had not been received or completed at date. Although encumbrances lapse at year-end, it is the
intention to substantially honor these encumbrances under authority provided in the subsequent
year’s budget. Encumbrances as of September 30, 2025 were as follows:
General Fund 169,059$
Building Services 6,377
Infrastructure 242,478
Nonmajor governmental funds 821,342
Water 357,541
Sewer 8,153,111
Sanitation 338,372
Total 10,088,280$
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make various estimates. Actual results could differ from those estimates.
Estimates that are particularly susceptible to significant change in the near term are related to
allowance for doubtful accounts, depreciable lives and estimated residual value of capital assets, fair
value of investments, actuarial valuations, compensated absences, and pension liability.
City of Clermont, Florida
Notes to the Financial Statements
- 53 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Subsequent Events
Management has evaluated subsequent events through the date that the financial statements were
available to be issued, March 31, 2026. See Note 8 for relevant disclosures. No subsequent events
occurring after this date have been evaluated for inclusion in these consolidated financial statements.
Recently Issued and Implemented Accounting Pronouncements
GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the
information needs of financial statement users by updating the recognition and measurement guidance
for compensated absences. That objective is achieved by aligning the recognition and measurement
guidance under a unified model and by amending certain previously required disclosures.
The implementation of GASB Statement No. 101 did not result in a material change to the City’s
financial statements. Any adjustments to beginning net position resulting from the adoption of this
standard were determined to be immaterial and, therefore, no restatement of prior-period financial
statements was required.
GASB Statement No. 102, Certain Risk Disclosures. This Statement was issued in December 2023 to
provide users of government financial statements with essential information about risks related to a
government’s vulnerabilities due to certain concentrations or constraints. This statement defines
concentration as a lack of diversity related to an aspect of a significant inflow of resources our outflow
of resources. A constraint is a limitation imposed on a government by an external party or by formal
action of the government’s highest level of decision-making authority. Concentrations and constraints
may limit a government’s ability to acquire resources or control spending.
This Statement requires a government to assess whether a concentration or constraint makes the
primary government reporting unit or other reporting units that report a liability for revenue debt
vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to
assess whether an event or events associated with a concentration or constraint that could cause the
substantial impact to have occurred, have begun to occur, or are more likely than not to begin to occur
within 12 months of the date the financial statements are issued. If a government determines that those
criteria for disclosure have been met for concentration or constraint, it should disclose information in
notes to financial statements in sufficient detail to enable users of financial statements to understand
the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial
impact. There were no significant impacts of implementing this Statement.
The Government Accounting Standards Board has issued statements that will become effective in future
years. These statements are as follows:
GASB Statement 103, Financial Reporting Model Improvements. This Statement was issued April 2024
to improve key components of the financial reporting model to enhance its effectiveness in providing
City of Clermont, Florida
Notes to the Financial Statements
- 54 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recently Issued and Implemented Accounting Pronouncements (Continued)
information that is essential for decision making and assessing a government’s accountability. This
Statement also addresses certain application issues.
This establishes new accounting and financial reporting requirements—or modifies existing
requirements—related to Management’s discussion and analysis (MD&A); unusual or infrequent
items; presentation of the proprietary fund statement of revenues, expenses, and changes in fund
net position; information about major component units in basic financial statements; budgetary
comparison information; and financial trends information in the statistical section. This Statement
will supersede and amend portions of GASB Statements 34 and 37. This Statement further amends
portions of GASB Statements 14, 41, 42, 44, 49, 56, 58, 61, 62 and 69. Related guidance will also be
superseded or amended upon implementation. Statement 103 will be effective for the fiscal year
ending September 30, 2026.
GASB Statement 104, Disclosure of Certain Capital Assets. This Statement was issued September
2024 to provide users of government financial statements with essential information about certain
types of capital assets.
This requires certain types of capital assets to be disclosed separately in the capital assets note
disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87,
Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-
Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed
separately by major class of underlying asset in the capital assets note disclosures. Subscription assets
recognized in accordance with Statement No. 96, Subscription-Based Information Technology
Arrangements, also should be separately disclosed. In addition, this Statement requires intangible
assets other than those three types to be disclosed separately by major class. This Statement also
requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for
sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable
that the sale will be finalized within one year of the financial statement date. Governments should
consider relevant factors to evaluate the likelihood of the capital asset being sold within the
established time frame. This Statement requires that capital assets held for sale be evaluated each
reporting period. Governments should disclose (1) the ending balance of capital assets held for sale,
with separate disclosure for historical cost and accumulated depreciation by major class of asset, and
(2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for
each major class of asset. Statement 104 will be effective for the fiscal year ending
September 30, 2026.
The City is currently evaluating the requirements of the above statements and the impact on
reporting.
City of Clermont, Florida
Notes to the Financial Statements
- 55 -
Note 2: CHANGE IN ACCOUNTING PRINCIPLE AND ERROR CORRECTION
The City’s fiscal year 2025 financial statements incorporate a change in accounting principle and a
change within the financial reporting entity, and reflect the correction of an error in previously issued
financial statements. GASB Statement No. 100, Accounting Changes and Error Corrections, requires
disclosure of their nature and effect on amounts reported in the financial statements.
The American Rescue Plan Act (ARPA) Fund, a special revenue fund, was presented as a major fund
in the City’s fiscal year 2024 governmental fund financial statements. However, in fiscal year 2025
the fund did not meet the quantitative threshold that requires major fund presentation. The City
consequently reclassified the fund as nonmajor and presented it in the nonmajor governmental fund
financial statements. This had no effect on the fund balance or net position of the fund.
Note 3: DETAILED NOTES ON ALL FUNDS
Deposits and Investments
The cash deposits are held by a bank that qualifies as a public depository under the Florida Security
and Public Deposits Act, as required by Chapter 280, Florida Statutes, and are considered fully
insured. In the event of a default or insolvency of a qualified public depositor, the State Treasurer
will implement procedures for payment of losses according to the validated claims of the City
pursuant to Section 280.08, Florida Statutes.
The investment program is established in accordance with the City’s investment policy, pertinent
bond resolutions and Section 218.415, Florida Statutes, which allows the City to invest in the Florida
State Board of Administration intergovernmental investment pool or any intergovernmental
investment pool authorized pursuant to the Florida Interlocal Cooperation Act of 1969, direct
obligations of the United States Government, obligations of the different agencies of the Federal
Government, registered money market funds and accounts of state qualified public depositories.
The Florida Public Assets for Liquidity Management (FL Palm) is a common law trust organized under
the laws of the State of Florida as an intergovernmental investment pool authorized pursuant to the
Florida Interlocal Cooperation Act, as provided in Section 163.01 of the Florida Statutes. The fair value
of the City’s position in the pool is equal to the value of the pooled shares or net asset value.
Under GASB Codification I50: Investments, if a participant has an investment in a qualifying external
investment pool that measures for financial reporting purposes all of its investments at amortized
cost, it should disclose the presence of any limitations or restrictions on withdrawals (such as
redemption notice periods, maximum transaction amounts, and the qualifying external investment
pool’s authority to impose liquidity fees or redemption gates) in notes to the financial statements. As
of September 30, 2025, there were no redemption fees or maximum transaction amounts, or any
other requirements that serve to limit the City’s access to 100 percent of their account value in the
external investment pool.
City of Clermont, Florida
Notes to the Financial Statements
- 56 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Deposits and Investments (Continued)
Custodial credit risk – Custodial credit risk for deposits is the risk in the event of the failure of a
depository financial institution, a government may not be able to recover deposits. Monies placed on
deposit with financial institutions in the form of demand deposits, time deposits or certificate of
deposits are defined as public deposits. The financial institutions in which the City places its deposits
are certified as “qualified public depositories,” as required under the Florida Security for Public
Deposits Act. For an investment, this is the risk that, in the event of the failure of the counterparty,
the City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party.
Interest rate risk – Interest rate risk is the possibility that interest rates will rise and reduce the fair
value of an investment. The City’s investment policy does not specifically address interest rate risk,
however, the general investment policy is to apply the prudent-person rule, which states 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.
Credit risk – Section I50: Investments of the GASB Codification requires that governments provide
information about credit risk associated with their investments by disclosing the credit rating of
investments in debt securities as described by nationally recognized statistical rating organizations.
The City’s investment policy limits investments to securities with specific ranking criteria.
Foreign currency risk – The City’s investments are not exposed to foreign currency risk and the City’s
investment policy does not address foreign currency risk.
Concentration risk – Section I50: Investments of the GASB Codification requires disclosures of
investments in any one issuer that represents five percent or more of total investments, excluding
investments issued or explicitly guaranteed by the U.S government, investments in mutual funds,
external investments pools and other pooled investments. The City’s investment policy does not
address concentration risk.
Fair Value – GASB Codification Section 3100: Fair Value Measurements establishes a framework for
measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements).
City of Clermont, Florida
Notes to the Financial Statements
- 57 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Deposits and Investments (Continued)
The three levels of the fair value hierarchy under the codification are described as follows:
Level 1 (L1): Inputs to the valuation methodology are unadjusted quoted prices for identical assets
or liabilities in active markets that the City has the ability to access.
Level 2 (L2): Inputs to the valuation methodology include:
• quoted prices for similar assets or liabilities in active markets;
• quoted prices for identical or similar assets or liabilities in inactive markets;
• inputs other than quoted prices that are observable for the asset or liability;
• inputs that are derived principally from or corroborated by observable market data
by correlation or other means.
Level 3 (L3): Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
The asset or liability’s fair value measurement level within the fair value hierarchy is based on the
lowest level of any input that is significant to the fair value measurement. Valuation techniques used
need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Investment Type
Primary government
FL Palm AAAm 36,225,008$ 43 days
Federal Agency Mortgage-Backed Securities AA++148,300 2.50
Federal Agency Commercial Mortgage-Backed SecuritiesAA++1,267,178 4.32
Federal Agency Collateralized Mortgage ObligationAA++18,450 1.58
US Treasury Notes AA+6,082,560 4.02
Corporate Note BBB+/A-/A/A+/AA-/AA/AA+/AAA/NR4,532,110 4.64
Asset Backed Security AAA/NR 3,166,973 4.57
Total primary government 51,440,579
Fiduciary Funds
Real Estate Investment Funds NR 1,758,618 N/A
Pension Fixed Income Securities various 30,232,726 2-8 years
Pension Equity Securities various 54,705,607
Total fiduciary funds 86,696,952
Total investments 138,137,531$
Credit Quality Rating NAV
Weighted
Average Maturity
City of Clermont, Florida
Notes to the Financial Statements
- 58 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Deposits and Investments (Continued)
The following table sets forth by level, within the fair value hierarchy, the City’s assets at fair value as
of September 30, 2025:
Fair Value Level 1 Level 2
Primary government
Federal Agency Mortgage-Backed Securities 148,300$ -$ 148,300$
Federal Agency Commercial Mortgage-Backed Securities1,267,178 - 1,267,178
Federal Agency Collateralized Mortgage Obligation 18,450 - 18,450
US Treasury Notes 6,082,560 6,082,560 -
Corporate Note 4,532,110 - 4,532,110
Asset Backed Security 3,166,973 - 3,166,973
Total primary government 15,215,571 6,082,560 9,133,011
Fiduciary Funds
Real Estate Investment Funds 1,758,618 - 1,758,618
Pension Fixed Income Securities 30,232,726 30,232,726 -
Pension Equity Securities 54,705,607 54,705,607 -
Total fiduciary funds 86,696,952 84,938,334 1,758,618
Total investments measured by fair value level 101,912,523 97,103,454$ 20,024,640$
Investments measured at the net asset value
Primary government
FL PALM 36,225,008
Total investments 138,137,531$
The following is a description of the valuation methodologies used for assets measured at fair value.
There have been no changes in the methodologies used at September 30, 2025.
Treasury note – Treasury notes are classified in Level 1 of the fair value hierarchy and are valued using
quoted market prices for those investments.
City of Clermont, Florida
Notes to the Financial Statements
- 59 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Deposits and Investments (Continued)
Federal securities, bank and corporate notes, asset backed security, municipal bonds and fixed income
securities – All are classified in Level 2 of the fair value hierarchy and are valued using quoted market
prices for those securities.
Mutual funds and equity securities – Mutual funds and equity securities are classified in Level 1 of the
fair value hierarchy and are valued using quoted market prices for those investments.
Real estate – Real estate classified in Level 2 of the fair value hierarchy are valued using pricing models
maximizing the use of observable inputs for similar assets. This includes basing value on yields
currently available on comparable on comparable real estate assets.
The methods described above may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. Furthermore, although the City believes its valuation
methods are appropriate and consistent with other market participants, the use of different
methodologies or assumptions to determine the fair value of certain financial instruments could result
in a different fair value measurement at the reporting date.
Fair Value of Investments in Entities that Use Net Asset Value (NAV) – The following table summarizes
investments measured at fair value based on NAV per share as of September 30, 2025:
Primary Government
Fair Value
FL PALM 36,225,008$ N/A 1 day
Redemption
Notice Period
Unfunded
Commitments
Accounts Receivable
For the Water, Sewer, Sanitation and Stormwater funds, operating revenues are generally recognized
on the basis of cycle billings rendered monthly. The amount of services delivered for the period from
the last billing date to September 30, 2025 (unbilled receivable), is estimated and accrued at year
end. The City deems all amounts over 120 days uncollectable therefore an allowance for doubtful
accounts has been established equivalent to the last four months of billing. If payments are not
received from customers, services are shut off and deposits are applied against negative balances.
City of Clermont, Florida
Notes to the Financial Statements
- 60 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Accounts Receivable (Continued)
All account receivables are shown net of allowances for uncollectible accounts for governmental
funds. The accounts receivable and allowance for uncollectible accounts at September 30, 2025, were
as follows:
Accounts Unbilled Allowance for
Receivable Receivables Uncollectible Total
General Fund 5,179,453$ 26,011$ (3,798,268)$ 1,407,196$
Enterprise Funds
Water 749,639 643,986 (135,900) 1,257,725
Sewer 1,043,049 644,676 (246,544) 1,441,181
Sanitation 412,448 281,421 (110,279) 583,590
Stormwater 186,704 118,708 (39,973) 265,439
Total receivables, net 7,571,293$ 1,714,802$ (4,330,964)$ 4,955,131$
Property taxes are considered fully collected during and prior to the end of the fiscal year. Therefore,
no material amounts of property taxes are receivable as of September 30, 2025. There are no other
reserves for receivables recorded by the City as of September 30, 2025.
Leases- Lessor
The City accounts for leases in accordance with GASBC Section L20, Leases. The City’s operations
consist of agreements for use of equipment and space. The agreements are made up of various non-
cancelable agreements, which expire between the years 2031 and 2039. The City recognized $66,504
of lease revenue principal and $118,721 of lease interest for the year ended September 30, 2025.
City of Clermont, Florida
Notes to the Financial Statements
- 61 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets
The following is a summary of changes in capital assets during the year ended September 30, 2025:
Beginning Balance Additions Deletions Ending Balance
Governmental activities
Capital assets not being depreciated
Land 28,494,922$ 300,000$ -$ 28,794,922$
Construction in progress 3,046,892 1,969,380 (2,367,375) 2,648,897
Total capital assets not being depreciated 31,541,814 2,269,380 (2,367,375) 31,443,819
Capital assets, being depreciated
Buildings 44,239,334 382,017 (71,564) 44,549,787
Equipment and machinery 25,165,223 3,548,383 (1,835,481) 26,878,125
Improvements/infrastructure 51,216,021 4,096,444 (319,267) 54,993,198
Intangibles 577,511 - (16,971) 560,540
Total capital assets, being depreciated 121,198,089 8,026,844 (2,243,283) 126,981,650
Less accumulated depreciation for
Buildings 17,101,491 1,722,594 (17,668) 18,806,417
Equipment and machinery 16,152,302 2,170,113 (1,714,448) 16,607,967
Improvements/infrastructure 20,859,158 2,832,385 (204,762) 23,486,781
Intangibles 508,161 14,709 (21,422) 501,448
Total accumulated depreciation 54,621,112 6,739,801 (1,958,300) 59,402,613
Total capital assets being depreciated, net 66,576,977 1,287,043 (284,983) 67,579,037
Governmental activities capital assets, net 98,118,791$ 3,556,423$ (2,652,358)$ 99,022,856$
City of Clermont, Florida
Notes to the Financial Statements
- 62 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets (Continued)
Business-type activities
Capital assets not being depreciated
Land 1,511,807$ 61,483$ -$ 1,573,290$
Construction in progress 48,848,031 10,762,041 - 59,610,072
Total capital assets not being depreciated 50,359,838 10,823,524 - 61,183,362
Capital assets being depreciated
Buildings 4,798,897 - (26,703) 4,772,194
Equipment and machinery 15,538,482 1,303,527 (216,795) 16,625,214
Improvements/infrastructure 173,038,250 8,479,636 (1,913,710) 179,604,176
Intangibles 1,301,509 - - 1,301,509
Total capital assets being depreciated 194,677,138 9,783,163 (2,157,208) 202,303,093
Less accumulated depreciation for
Buildings 490,837 206,266 (26,704) 670,399
Equipment and machinery 9,989,746 1,503,808 (159,926) 11,333,628
Improvements/infrastructure 79,237,685 8,658,182 (41,147) 87,854,720
Intangibles 592,723 152,745 - 745,468
Total accumulated depreciation 90,310,991 10,521,001 (227,777) 100,604,215
Total capital assets being depreciated, net 104,366,147 (737,838) (1,929,431) 101,698,878
Business-type activities capital assets, net 154,725,985$ 10,085,686$ (1,929,431)$ 162,882,240$
Beginning Balance Additions Deletions Ending Balance
Depreciation expense was allocated to the governmental functions in the statement of activities as
follows:
Governmental activities:
General government 1,006,860$
Public safety 4,330,018
Physical environment/transportation 819,579
Economic environment 17,000
Culture and recreation 566,344
Total 6,739,801$
Business-type activities:
Water 3,298,879$
Sewer 5,342,128
Stormwater 1,283,485
Sanitation 596,509
Total 10,521,001$
City of Clermont, Florida
Notes to the Financial Statements
- 63 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Long-Term Liabilities
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.
Bonds Payable-Public Offering
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. The bond is secured by the net revenue of the water and sewer system.
The City issued Water and Sewer Revenue Bond, Series 2024 in the amount of $28,152,000 with
interest 3.40% to finance costs of the water and sewer improvement projects. The bond is secured
by the net revenue of the water and sewer system.
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. 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 costs of the acquisition and construction of a new municipal police
station. This note is secured by the infrastructure sales surtax. In the event of default, the lender may
seek enforcement of all remedies available under the law. Any amounts due on the note that remain
unpaid shall bear interest at the default rate until all amounts then due are paid in full.
The City issued Master Plan Capital Projects Revenue Note, Series 2017 in the amount of $30,000,000
with interest of 2.63% to fund master plan projects, Victory Pointe, Boat Ramp Relocation, Downtown
Waterfront District Revitalization, Legacy Loop Trail Spur, Public Wi-Fi Network, Public Works
Complex, and City Limits Entryway Signs. This note is secured by a covenant to budget and
appropriate. 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.
The City entered into a promissory note for purchase of real property in the amount of $499,200 with
zero interest rate. In the event of default, past due payment charges not yet received remain due and
payable.
City of Clermont, Florida
Notes to the Financial Statements
- 64 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Long-Term Liabilities (Continued)
Financed Purchases
The City has entered into an agreement for financing the acquisition of communications equipment.
Payments are due annually. The loan period is for 10 years with an interest rate of 3.3%.
Compensated absences will be liquidated in future periods primarily by the General Fund for
governmental activities. Business-type activities compensated absences will be liquidated by the
respective proprietary fund.
Long-term liability activity for the year ended September 30, 2025 was as follows:
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Governmental activities
Notes payable
Infrastructure revenue note 2,720,413$ -$ (364,605)$ 2,355,808$ 372,334$
Public Improvement revenue note 2,264,673 - (434,915) 1,829,758 443,744
Capital Improvement Note 15,290,459 - (1,528,293) 13,762,166 1,567,743
Promissory note 499,200 - (124,800) 374,400 -
Bonds payable-revenue bonds 28,152,000 - (500,000) 27,652,000 500,000
Financed purchases 2,018,110 944,934 (354,389) 2,608,655 365,637
Total notes from direct
borrowings 50,944,855 944,934 (3,307,002) 48,582,787 3,249,458
OPEB Liability 10,252,346 - (1,235,835) 9,016,511 -
Compensated absences, net*1,979,134 1,353,141 3,332,275 333,228
Governmental activity
long-term liabilities 63,176,335$ 2,298,075$ (4,542,837)$ 60,931,573$ 3,582,686$
Additions Reductions
Business-type activities
Notes payable-capital projects 4,088,541$ -$ (408,707)$ 3,679,834$ 419,257$
Bonds payable-revenue bonds 7,080,000 - (943,000) 6,137,000 965,000
Total notes from direct borrowings 11,168,541 - (1,351,707) 9,816,834 1,384,257
OPEB Liability 3,376,569 - (239,824) 3,136,745 -
Compensated absences, net*455,919 330,945 786,864 78,686
Business-type activity
long-term liabilities 15,001,029$ 330,945$ (1,591,531)$ 13,740,443$ 1,462,943$
*The change in the compensated absences liability is presented as net change.
Beginning
Balance
Ending
Balance
Due Within
One Year
City of Clermont, Florida
Notes to the Financial Statements
- 65 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Long-Term Liabilities (Continued)
Annual debt service requirements to maturity are as follows:
Governmental Activities
For the years ending
December 31,Principal Interest Principal Interest Principal Interest Principal Interest
2026 2,383,821$ 544,766$ 500,000$ 940,168$ 365,637$ 67,299$ 3,249,458$ 612,065$
2027 2,442,539 485,908 500,000 923,168 279,998 59,332 3,222,537 545,240
2028 2,501,609 425,596 500,000 906,168 281,752 51,259 3,283,361 476,855
2029 2,562,612 239,002 500,000 889,168 166,205 42,009 3,228,817 281,011
2030 2,144,671 387,315 500,000 872,168 173,867 34,347 2,818,538 421,662
2031-2033 6,286,880 430,595 25,152,000 3,210,892 1,341,196 53,452 32,780,076 484,047
Total 18,322,132 2,513,182 27,652,000 7,741,732 2,608,655 307,698 48,582,787 2,820,880
Current portion (2,383,821) (544,766) (500,000) (940,168) (365,637) (67,299) (3,249,458) (612,065)
Payable after one year 15,938,311$ 1,968,416$ 27,152,000$ 6,801,564$ 2,243,018$ 240,399$ 45,333,329$ 2,208,815$
Notes Payable Financed Purchases TotalBonds Payable
Business-type Activities
For the years ending
December 31,Principal Interest Principal Interest Principal Interest
2026 419,257$ 91,266$ 965,000$ 134,577$ 1,384,257$ 225,843$
2027 430,440 80,093 986,000 111,360 1,416,440 191,453
2028 441,623 68,625 1,009,000 87,620 1,450,623 156,245
2029 453,228 56,858 1,036,000 63,284 1,489,228 120,142
2030 465,255 779,795 1,060,000 578,842 1,525,255 1,358,637
2031 1,470,031 103,476 1,081,000 553,364 2,551,031 656,840
Total 3,679,834 1,180,113 6,137,000 1,529,047 9,816,834 2,709,160
Current portion (419,257) (91,266) (965,000) (134,577) (1,384,257) (225,843)
Payable after one year 3,260,577$ 1,088,847$ 5,172,000$ 1,394,470$ 8,432,577$ 2,483,317$
Bonds PayableNotes Payable Total
The City has notes outstanding at September 30, 2025, for which revenues of the City have been
pledged for repayment. Revenues pledged to repay these obligations are as follows:
Future Current Current Year Current
Amount Principal and Pledged Principal Percentage
Issued Interest Revenue and Interest of Revenue
Governmental activities
Infrastructure revenue note 5,300,000$ 3,659,156$ 5,957,226$ 418,492$ 7.02%
Public Improvement revenue note 5,331,196 2,947,178 7,393,204 476,561 6.45%
Capital Improvement Note 30,000,000 17,008,046 16,269,674 2,421,462 14.88%
Bonds payable-revenue bonds 28,152,000 35,393,732 9,634,470 1,440,168 14.95%
Business-type activities
Revenue bonds 10,817,000 7,666,047 9,634,470 1,099,577 11.41%
City of Clermont, Florida
Notes to the Financial Statements
- 66 -
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
Interfund Receivables, Payables And Transfers
The City had no interfund receivables or payables as of September 30, 2025. The transfers between
funds is as follows:
Transfers out:Total
General fund $ - 216,465$ -$ -$ 72,616$ 1,219,291$ 1,508,372$
Infrastructure Fund - 2,010,115 - - - - 2,010,115
ARPA Fund - - - 3,092,329 - - 3,092,329
Debt Service - - 12,304,591 - - 12,304,591
Recreation Impact Fees - 564,015 - - - - 564,015
Police Impact Fees - 14,630 - - - - 14,630
Water 2,129,859 - - - - - 2,129,859
Sewer 1,873,257 1,488,550 - - - - 3,361,807
Total $ 4,003,116 $ 4,293,775 $ - $ 15,396,920 $ 72,616 $ 1,219,291 24,985,718$
General fund
Transfers in:
Debt Service
Fund Water Sewer
Police Asset
Forfeiture Fire Impact Fees
The majority of the transfers were to fund other capital projects and debt service payments. Transfers
from the Water and Sewer fund to the General fund were based on a percentage of water and sewer
sales.
Net Investment In Capital Assets
The elements of this calculation are as follows:
Activities Activities Total
Capital assets (net)99,022,856$ 162,882,240$ 261,905,096$
Deferred outflows on refunding - 403,424 403,424
Less retainage payable - (932,037) (932,037)
Less construction and bond payable related to capital assets (48,582,787) (9,816,834) (58,399,621)
Net investment in capital assets 50,440,069$ 152,536,793$ 202,976,862$
Note 4: RETIREMENT PLANS
Employee Retirement Plans and Pension Plans
The City maintains three separate single-employer, defined benefit plans (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.
City of Clermont, Florida
Notes to the Financial Statements
- 67 -
Note 4: RETIREMENT PLANS (Continued)
Defined Contribution Plans
The defined contribution pension plan for general employees of the City 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 five 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.
The City contributes annually to the pension account of each active participant an amount equal to
10% of the employee’s annual compensation. No contribution is required by employees. The City
Council adopted and may amend plan provision by resolution.
Since these plans qualify as defined contribution plans, the assets, liabilities, net position and
operations are not recorded within the City’s financial statements.
The employer’s contributions for both plans was $1,299,728 for the year ended September 30, 2025.
Description of 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. Each plan is administered by a separate board of trustees comprised of
five members, two of whom are appointed by the City Council, two of whom are full-time participants
of the respective employee group (General, Police, or Fire) and one is chosen by a majority of the
previous four members. Each board of trustees is empowered to hire its own attorneys and
consultants at the pension fund’s expense, and to bring and defend lawsuits. Stand-alone audited
financial statements are avialble upon request to the Pension Services Division.
Summary of Significant Accounting Policies (All Plans)
Basis of Accounting
The Plans’ financial statements are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period in which the contributions are due. Employer contributions
to each plan are recognized when due and the employer has made a formal commitment to provide
the contributions. Benefits, refunds, and administrative costs are recognized when due and payable
in accordance with the terms of each plan. On-behalf payments, made by the state totaling $625,632
and $408,047 for the Fire Employees and Police Employees plans, respectively, were recognized as
revenues and expenditures in the General Fund during the year ended September 30, 2025.
City of Clermont, Florida
Notes to the Financial Statements
- 68 -
Note 4: RETIREMENT PLANS (Continued)
Summary of Significant Accounting Policies (All Plans)
Method Used to Value Investments
Investments are reported at fair value. Short-term investments are reported at amortized cost, which
approximates fair value. Securities traded on a national or international exchange are valued at the
last reported sales price at current exchange rates. Investments that do not have an established
market are reported at estimated fair value.
Funding Requirements
The City uses the entry age normal actuarial cost method (EAN) to determine required contributions.
This method provides a stable pattern of minimum required contributions at a level dollar amount
(for each plan) and allows a more transparent analysis of the changes experienced from one year to
the next.
City contributions are actuarially determined sufficient to pay current costs and amortize unfunded
past service costs, if any, as provided in Chapter 112, Florida Statutes.
Florida Statutes, Chapters 175 and 185, require members to contribute not less than .5% of their
annual salary. The Police Employees and Fire Employees plans, as approved by the City Council,
require members to contribute 5% and 5.5%, respecitvely of their basic compensation. The City is
required to contribute at an actuarially determined rate, which includes the state’s premium tax
proceeds. Employer contributions for police officers and firefighters include on-behalf payments from
the state of Florida related to state excise taxes collected on homeowners’ insurance policies.
The current required employer contribution rate is 18.18% of annual covered payroll for police
officers and 39.63% of covered payroll for firefighters. The City contributed $1,097,940 and
$2,585,520 for Police Employees and Fire Employees plans, respectively, for the year ended
September 30, 2025. Municipalities that have established pension plans complying with the
provisions of Chapters 175 and 185, Florida Statutes, and that have enacted appropriate taxing
legislation are eligible to receive revenues generated from excise taxes on gross receipts of certain
insurance premiums from policyholders covering property within the City limits.
These state premium tax proceeds are the Firefighters’ Pension Fund Excise Tax, which is imposed on
the gross receipts of property insurance policy premiums, and the Police Officers’ Pension Fund Excise
Tax, which is imposed on the gross receipts of casualty insurance policy premiums.
City of Clermont, Florida
Notes to the Financial Statements
- 69 -
Note 4: RETIREMENT PLANS (Continued)
Plans Membership and Benefits
The makeup of plan participants as of the September 30, 2025, valuation was as follows:
General Police Fire
Plan Membership Employees Employees Employees
Inactive plan members or beneficiaries currently
receiving benefits 1 35 11
Inactive plan members entitled to, but not yet receiving benefits - 45 77
Active plan members - 85 74
Total plan membership 1 165 162
The plans provide retirement, termination, disability, and death benefits. A summary of those
benefits, by plan, is outlined below.
General Employees Police Employees Fire Employees
Normal Retirement Not applicable
Early Retirement Not applicable Age 50 and 10 years of service, reduced at 3% per year.Age 50 and 10 years of service, reduced at 3% per year.
Termination of Employment Not applicable
Disability Benefits Not applicable
Pre-Retirement Death Benefits Not applicable
Disability Benefits Not applicable
Not applicable
Employees eligible at normal retirment age. Accrued
benefit frozen but earns interest until DROP exit (no
more than 5 years later).
Age 55 and 10 years of service or 20 years of service,
regardless of age. Benefit equials 2.25% x Avg Monthly
Comp x credited service (if hired prior to 10/1/02, after
is 3%).
Line of duty benefit is larger of basic pension formula or
42% of average earnings; Non line of duty is 25% of
average earnings.
Employees eligible at normal retirment age. Accrued
benefit frozen but earns interest until DROP exit (no
more than 5 years later).
Age 55 and 10 years of service or 20 years of service,
regardless of age. Benefit equials 2.25% x Avg
Monthly Comp x credited service (if hired prior to
10/1/02, after is 3%).
Vested employees receive full benefits upon
retirement age. Nonvested are entitlted to return of
employee contributions.
Line of duty benefit is larger of basic pension formula
or 42% of average earnings; Non line of duty is 25% of
average earnings.
Survivor benefit is 10 years certain amount adjusted
for vesting status at time of death of plan member.
Survivor benefit is 10 years certain amount adjusted for
vesting status at time of death of plan member.
Vested employees receive full benefits upon retirement
age. Nonvested are entitlted to return of employee
contributions.
Deferred Retirement Option (DROP)
City of Clermont, Florida
Notes to the Financial Statements
- 70 -
Note 4: RETIREMENT PLANS (Continued)
Pension Plan Investments
Each plan’s investment policy was adopted by the respective Pension Board of Trustees, which has
the authority for establishing and amending investment policy decisions for each of the plans that
they administer. The policy outlines suitable, authorized investments along with asset allocations.
Each plan’s investments are reported at fair value. Securities traded on a national exchange are
valued at the last reported sales price at current exchange rates. Independent investment managers
and an independent custodian handle all pension investments and disbursements.
Annual Money-Weighted Rate of Return
For the fiscal year ended September 30, 2025, the annual money-weighted rate of return, net of
investment expense on the Plans was as follows:
General Police Fire
Employees Employees Employees
Annual money-weighted rate of return
net of investment expenses 4.30%11.59%11.37%
Net Pension Liability, Significant Assumptions, And Discount Rate
The plans’ fiduciary net position as a percentage of the total pension liability as of
September 30, 2025, were as follows:
General employees
179.42%
Police employees
111.57%
Fire employees
113.09%
Plan fiduciary net position as a percentage of the total
pension liability at September 30, 2025
Plan fiduciary net position as a percentage of the total
pension liability at September 30, 2025
Plan fiduciary net position as a percentage of the total
pension liability at September 30, 2025
City of Clermont, Florida
Notes to the Financial Statements
- 71 -
Note 4: RETIREMENT PLANS (Continued)
Net Pension Liability, Significant Assumptions, And Discount Rate (Continued)
The total pension liability was determined by an actuarial valuation using the following actuarial
assumptions applied to all measurement periods for each plan:
Valuation date 10/1/2024 10/1/2024 10/1/2024
Inflation 2.75%2.50%2.50%
Salary Increases Not applicable 5.5% per annum 5.5% per annum
Discount Rate 6.75%7.00%7.00%
Investment Rate of Return 6.75%7.00%7.00%
Mortality rates were based on the July 1, 2018 FRS special risk actuarial valuation for all plans.
Disabled tables were used for disabled lives.
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
plans’ target asset allocation as of September 30, 2025, are summarized in the following table:
Long-Term Long-Term Long-Term
Target Expected Real Target Expected Real Target Expected Real
Asset Class Allocation Rate of Return Allocation Rate of Return Allocation Rate of Return
Core Bonds 15.00%1.60%N/A N/A N/A N/A
Core Plus 15.00%2.10%N/A N/A N/A N/A
US Large Cap Equity 25.00%4.60%N/A N/A N/A N/A
US Small Cap Equity 14.00%5.50%N/A N/A N/A N/A
Foreign Equity 21.00%6.70%10.00%3.75%10.00%3.75%
Private Real Estate 10.00%5.00%10.00%5.35%10.00%5.35%
Domestic Equity N/A N/A 40.00%7.83%40.00%7.83%
Convertibles N/A N/A 10.00%6.30%10.00%6.30%
Global Infrastructure N/A N/A 5.00%6.39%5.00%6.39%
Fixed Income N/A N/A 25.00%1.81%25.00%1.81%
General Employees Police Employees Fire Employees
City of Clermont, Florida
Notes to the Financial Statements
- 72 -
Note 4: RETIREMENT PLANS (Continued)
Net Pension Liability, Significant Assumptions, And Discount Rate (Continued)
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 actuarially determined contribution rates and the
member rate. Based on those assumptions, each 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 net pension liability.
Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions
On September 30, 2025, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources Resources Resources
Differences between Expected and Actual Experience -$ -$ 374,214$ (797,136)$ 950,418$ (103,518)$
Changes of assumptions - - 87,105 - 138,960 -
Net difference between Projected and Actual Earnings
on Pension Plan investments 10,628 (16,455) 1,403,492 (3,265,653) 1,426,491 (3,660,329)
Employer and State contributions subsequent to the
measurement date - - - - - -
Total 10,628$ (16,455)$ 1,864,811$ (4,062,789)$ 2,515,869$ (3,763,847)$
General Employees Police Employees Fire Employees
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:General Police Fire
2026 4,944$ 406,944$ 312,924$
2027 (5,683) (996,548) (1,113,568)
2028 (4,913) (972,880) (1,103,364)
2029 (175) (299,677) (329,830)
2030 - - -
Thereafter - - -
Total (5,827)$ (1,862,161)$ (2,233,838)$
City of Clermont, Florida
Notes to the Financial Statements
- 73 -
Note 4: RETIREMENT PLANS (Continued)
Changes in Net Pension Liability and Sensitivity to Changes in Discount Rate
General Employees
The following schedule displays the components of the net pension asset as of the City’s
measurement date of September 30, 2025.
Total Plan Net Pension
Pension Fiduciary
Liability Net Position
Balances at September 30, 2024 182,554$ 240,531$ (57,977)$
Changes for the year
Service cost - - -
Interest 11,722 871 10,851
Differences between expected and
actual experience (49,817) - (49,817)
Changes of assumptions 1,433 - 1,433
Changes of benefit terms - - -
Contributions - employer - - -
Contributions - employee - - -
Net investment income - 15,635 (15,635)
Benefit payments, including refunds of
employee contributions (18,176) (18,176) -
Administrative expense - (9,714) 9,714
Net changes (54,838) (11,384) (43,454)
Balances at September 30, 2025 127,716$ 229,147$ (101,431)$
Increase (Decrease)
Liability (Asset)
City of Clermont, Florida
Notes to the Financial Statements
- 74 -
Note 4: RETIREMENT PLANS (Continued)
Changes in Net Pension Liability and Sensitivity to Changes in Discount Rate (Continued)
The sensitivity of the net pension liability (asset) to changes in the discount rate is shown below.
Current
0.01 Discount 0.01
Decrease Rate Increase
(5.75%)(6.75%)(7.75%)
City's net pension asset-
General Employees ($95,387)($101,431)($106,987)
Police Employees
The following schedule displays the components of the net pension asset as of the City’s
measurement date of September 30, 2025.
Total Plan Net Pension
Pension Fiduciary
Liability Net Position
Balances at September 30, 2024 30,909,283$ 33,089,319$ (2,180,036)$
Changes for the year
Service cost 1,733,463 - 1,733,463
Interest 2,240,354 2,352,273 (111,919)
Differences between expected and
actual experience 61,657 - 61,657
Changes of assumptions - - -
Changes of benefit terms - - -
Contributions - employer - 1,527,796 (1,527,796)
Contributions - employee - 508,159 (508,159)
Net investment income - 1,498,385 (1,498,385)
Benefit payments, including refunds of
employee contributions (897,228) (897,228) -
Administrative expense - (91,854) 91,854
Net changes 3,138,246 4,897,531 (1,759,285)
Balances at September 30, 2025 34,047,529$ 37,986,850$ (3,939,321)$
Liability (Asset)
The plan fiduciary net position does not include Share Plan balances of $1,827,683.
City of Clermont, Florida
Notes to the Financial Statements
- 75 -
Note 4: RETIREMENT PLANS (Continued)
Changes in Net Pension Liability and Sensitivity to Changes in Discount Rate (Continued)
The sensitivity of the net pension liability (asset) to changes in the discount rate is shown below.
Current
0.01 Discount 0.01
Decrease Rate Increase
(6.0%)(7.0%)(8.0%)
City's net pension asset-
Police Employees $879,701 ($3,939,321)($7,751,261)
Fire Employees
The following schedule displays the components of the net pension asset as of the City’s
measurement date of September 30, 2025.
Total Plan Net Pension
Pension Fiduciary
Liability Net Position
Balances at September 30, 2024 35,730,596$ 37,713,439$ (1,982,843)$
Changes for the year
Service cost 1,759,914 - 1,759,914
Interest 2,574,720 2,751,889 (177,169)
Differences between expected and
actual experience 436,485 - 436,485
Changes of assumptions 473 - 473
Changes of benefit terms - - -
Contributions - employer - 3,072,337 (3,072,337)
Contributions - employee - 646,818 (646,818)
Net investment income - 1,649,150 (1,649,150)
Benefit payments, including refunds of
employee contributions (386,296) (386,296) -
Administrative expense - (79,320) 79,320
Net changes 4,385,296 7,654,578 (3,269,282)
Balances at September 30, 2025 40,115,892$ 45,368,017$ (5,252,125)$
Increase (Decrease)
Liability (Asset)
The plan fiduciary net position does not include Share Plan and DROP balances of $1,620,380.
City of Clermont, Florida
Notes to the Financial Statements
- 76 -
Note 4: RETIREMENT PLANS (Continued)
Changes in Net Pension Liability and Sensitivity to Changes in Discount Rate (Continued)
The sensitivity of the net pension liability (asset) to changes in the discount rate is shown below.
Current
0.01 Discount 0.01
Decrease Rate Increase
(6.0%)(7.0%)(8.0%)
City's net pension asset-
Fire Employees $111,901 ($5,252,125)($9,903,995)
Pension Plan Financial Statements
The City does not issue separate financial statements for the General Employees, Police Employees
or the Fire Employees pension plans. The basic financial statements of the City include a statement
of net position and a statement of changes in fiduciary net position that presents a single column for
each fund type for all pension trust funds.
Combining Fund Information
The following tables present the combined pension trust funds fiduciary net position activity as of
September 30, 2025:
General Employees Police Pension Fire Pension Total Employee
September 30, 2025 Defined Benefit Trust Fund Trust Fund Pension Trust Funds
Assets
Investments, at fair value 208,740$ 39,754,621$ 46,733,591$ 86,696,952$
Receivables 5,582 102,094 - 107,676
Total assets 214,322 39,856,715 46,733,591 86,804,628
Liabilities
Accounts payable - 12,138 5,978 18,116
Pending trades payable - 30,044 36,543 66,587
Total liabilities - 42,182 42,521 84,703
Net Position
Restricted for pension benefits 214,322$ 39,814,533$ 46,691,070$ 86,719,925$
City of Clermont, Florida
Notes to the Financial Statements
- 77 -
Note 4: RETIREMENT PLANS (Continued)
Pension Plan Financial Statements (Continued)
Combining Fund Information (Continued)
The pension trust funds change in fiduciary net position activity for the year ended
September 30, 2025 was as follows:
General Employees Police Pension Fire Pension Total Employee
For the year ended September 30, 2025 Defined Benefit Trust Funds Trust Fund Pension Trust Funds
Additions
Contributions
State of Florida -$ 648,712$ 486,817$ 1,135,529$
City - 1,097,940 2,585,520 3,683,460
Plan members - 392,515 603,814 996,329
Total contributions - 2,139,167 3,676,151 5,815,318
Investment earnings
Interest and dividends, net of investment expense - 1,205,134 1,420,769 2,625,903
Other income - 16,233 - 16,233
Net appreciation in fair value of investments 16,506 2,795,224 3,112,457 5,924,187
Total investment earnings 16,506 4,016,591 4,533,226 8,566,323
Total additions 16,506 6,155,758 8,209,377 14,381,641
Deductions
Benefit payments including refunds of contributions 18,176 952,010 386,296 1,356,482
Administrative expenses 9,714 91,854 79,320 180,888
Total deductions 27,890 1,043,864 465,616 1,537,370
Change in net position (11,384) 5,111,894 7,743,761 12,844,271
Net position restricted for pension benefits, beginning of year 225,706 34,702,639 38,947,309 73,875,654
Net position restricted for pension benefits, end of year 214,322$ 39,814,533$ 46,691,070$ 86,719,925$
Note 5: POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
Plan Description
The City of Clermont, Florida administers a single-employer defined benefit healthcare plan (the Plan)
that provides medical insurance to its employees and their eligible dependents. Pursuant to Section
112.0801 Florida Statutes, the City is required to provide eligible retirees (as defined in the City’s
pension plans) the opportunity to participate in this Plan at the same cost that is applicable to active
employees. The City does not issue stand-alone financial statements for this Plan. All financial
information related to the Plan is accounted for in the City’s basic financial statements.
City of Clermont, Florida
Notes to the Financial Statements
- 78 -
Note 5: POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Continued)
Funding Policy
The City is funding the post employee benefits on a pay-as-you-go basis. Contribution rates for the
Plan are established by City Council annually during the budget process. The City does not pay for
health insurance premiums for retirees. Blended premium rates for active and retired employees
combined provide an implicit subsidy for retirees because on an actual basis, their current and future
claims are expected to result in higher costs to the Plan than those of active employees. The current
year contributions are determined as annualized claims incurred based on the retiree age at the
beginning of the fiscal year and the claims table used for liability determination offset by the annual
premium paid by the retiree for such coverage. City contributions are assumed to be equal to benefits
paid.
Plan Membership
At the valuation date October 1, 2024, OPEB membership consisted of the following:
Inactive members 5
Active members 385
Total 390
Actuarial Assumptions and Other Inputs
At the September 30, 2025 measurement date, the actuarial assumptions and other inputs, applied
include the following:
Salary Increases 3.50 % including inflation
Discount rate 4.90% investment rate of return
Health care cost trend rates 2024 - 2025 Trend (OAP / HDP) -6.38% / -4.56%
Retirees' share of benefit-related costs 100.00 % of projected health insurance premiums
The discount rate was selected based on a 20-year tax-exempt high-quality general obligation
municipal bond yield of index. The Bond Buyer 20-Bond General Obligation Index is the average rating
of 20 bonds that are grade ‘Aa2’ (Moody’s) or grade ‘AA’ (S&P 500). The Bond Buyer 20-Bond General
Obligation Index at September 30, 2025 was 4.90%.
Mortality rates were based on the RP-00 Annuitant Mortality Tables for Males and Females as
appropriate with both rates, fully generational with adjustments for mortality improvements based
on Scale BB. RP-00 Disabled Retiree Mortality Tables set back 4 years for males and forward 2 years
for females, with no projected improvement used for disabled employees.
City of Clermont, Florida
Notes to the Financial Statements
- 79 -
Note 5: POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Continued)
Actuarial Assumptions and Other Inputs (Continued)
The actuarial assumptions used in the October 1, 2024 valuation were not based on the results of an
actuarial experience study.
At September 30, 2025, the City of Clermont, Florida reported a total OPEB liability of $12,153,256.
The information has been provided as of the September 30, 2025 measurement date.
Total OPEB Plan Fiduciary Total OPEB
Liability Net Position Liability (Asset)
(a)(b)(a) - (b)
Balances at September 30, 2024 13,628,915$ -$ 13,628,915$
Changes for the year
Service cost 777,143 - 777,143
Interest 573,390 - 573,390
Changes of assumptions (2,582,236) - (2,582,236)
Difference between expected and
actual experience - - -
Changes in benefit terms - - -
Contributions - employer (243,956) 243,956 (487,912)
Net investment income - - -
Benefit payments - (243,956) 243,956
Administrative expenses - - -
Net changes (1,475,659) - (1,475,659)
Balance as of September 30, 2025 12,153,256$ -$ 12,153,256$
Increase (Decrease)
There were no changes in assumptions and other inputs from the October 1, 2022 valuation. The
methods, assumptions, and participant data used are detailed in the actuarial valuation report dated
October 1, 2024, except that these calculations are based in the Entry Age Normal cost method
required by GASB P52: Postemployment Benefits Other Than Pensions.
City of Clermont, Florida
Notes to the Financial Statements
- 80 -
Note 5: POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Continued)
Sensitivity of the Net OPEB Liability
The following table represents the City’s total and net OPEB liability calculated using the discount
rate of 4.90%, as well as what the City’s net OPEB liability would be if it were calculated using a
discount rate that is one percentage point lower (3.90%) or one percentage point higher (5.90%)
than the current rate:
Current
1% Decrease Discount Rate 1% Increase
3.90%4.90%5.90%
Net OPEB Liability 13,966,630$ 12,153,256$ 10,647,714$
The following table represents the City’s total and net OPEB liability calculated using the health care
cost trend rate of 5.00%, as well as what the City’s net OPEB liability would be if it were calculated
using a health care cost trend rate that is one percentage point lower (4.00%) or one percentage
point higher (6.00%) than the current rate:
Ultimate
Trend
1% Decrease Baseline 1% Increase
Net OPEB Liability 10,315,163$ 12,153,256$ 14,415,090$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the fiscal year ended September 30, 2025, the City of Clermont, Florida reported deferred inflows
of resources related to the OPEB plan from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual experience 81,750$ (1,356,483)$
Change of assumptions 536,110 (4,582,049)
Net difference between projected and actual
earnings on OPEB plan investments - -
Contributions subsequent
to the measurement date - -
Total 617,860$ (5,938,532)$
City of Clermont, Florida
Notes to the Financial Statements
- 81 -
Note 5: POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
the OPEB plan will be recognized in the expense as follows:
For the years ending December 31,
2026 (589,342)$
2027 (840,472)
2028 (871,508)
2029 (871,508)
2030 (907,625)
Thereafter (1,240,217)
Total (5,320,672)$
Note 6: RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of
property and other assets; errors and omissions by employees; and natural disasters, particularly
during the hurricane season of June through November. The City has purchased various types of
insurance to protect itself. There have been no changes in insurance coverage during the current or
previous fiscal year. The City does not participate in a risk pool and does not retain any of the risks of
loss.
Note 7: COMMITMENTS AND CONTINGENCIES
During the ordinary course of its operation, the City is party to various claims, legal actions, and
complaints. While the ultimate effect of such litigation cannot be ascertained at this time, in the
opinion of counsel for the City, the liabilities which may arise from such actions would not result in
losses which would exceed the liability insurance limits in effect at the time the claim arose or
otherwise materially affect the financial condition of the City or results of activities.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state governments. Any disallowed claims, including amounts
already collected, may constitute a liability of the applicable fund(s). The amount, if any, of
expenditures from current or prior years which may be disallowed by the grantor cannot be
determined at this time although the City expects such amounts not recorded, if any, to be
immaterial.
City of Clermont, Florida
Notes to the Financial Statements
- 82 -
Note 7: COMMITMENTS AND CONTINGENCIES (Continued)
The City has active construction projects as of September 30, 2025. At year-end, the City’s
commitments by project are as follows:
Fire Station #2 129,378$
Lower Floridian Aquifer Exploratory 28,523
Wastewater Treatment Facility Expansion 7,280,611
Hartwood Marsh Relocation 30,397
Lakeshore Drainage 154,562
Cemetary Expansion 8,240
Meet Us in the Middle/8th St Docks 582,371
Total commitments 8,214,082$
The commitments are being financed by governmental and enterprise revenues and from awarded
grants.
Note 8: SUBSEQUENT EVENTS
On February 24, 2026, a resolution was approved for funding from Florida Department of
Environmental Protection through Drinking Water State Revolving Fund for $15,660,000, which
includes $7,830,000 in principal forgiveness.
On January 9, 2026, the City was notified of an arbitrage rebate liability from the Water and Sewer
Revenue Bond, Series 2024 of $247,522 as of December 31, 2025, to be due no later than 60 days
after May 16, 2029 installment computation date.
Note 9: RISK MANAGEMENT – SELF-INSURANCE
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 $200,000 per year in medical, dental or prescription claims for each covered
employee. The City purchases commercial insurance for claims in excess of $200,000 coverage
provided by the fund with a total aggregate stop-loss of $6,896,045.
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.
City of Clermont, Florida
Notes to the Financial Statements
- 83 -
Note 9: RISK MANAGEMENT – SELF-INSURANCE (Continued)
The claims liability of $374,104 represents claims processed through October 2025 which were
applicable to the current fiscal year and any additional claims are deemed immaterial. Changes to
the current claims liability are as follows:
For the years ended December 31, 2025 2024
Balance, beginning of year 313,968$ 607,037$
Current year claims and changes in estimate 6,728,664 6,067,197
Claims payments (6,668,528) (6,360,266)
Balance, end of year 374,104$ 313,968$
REQUIRED SUPPLEMENTARY
INFORMATION
THIS PAGE INTENTIONALLY LEFT BLANK
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual - General Fund
- 84 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Ad valorem taxes 34,722,409$ 35,422,409$ 35,678,769$ 256,360$
Franchise fees 4,385,000 4,385,000 5,083,997 698,997
Intergovernmental revenues 6,571,200 7,297,400 8,380,530 1,083,130
Licenses and permits 500,150 935,150 845,612 (89,538)
Charges for services 3,163,537 3,636,137 3,665,783 29,646
Fines and forfeitures 111,000 111,000 113,231 2,231
Interest and investment income 350,000 1,358,500 1,453,872 95,372
Contributions and other income 1,087,345 1,742,945 1,909,069 166,124
Total revenues 50,890,641 54,888,541 57,130,863 2,242,322
Expenditures
General government
City council 76,802 76,802 69,712 7,090
City clerk 541,216 629,406 540,139 89,267
City manager 977,936 1,060,860 987,918 72,942
Finance 1,622,119 1,675,019 1,620,799 54,220
Legal services 170,000 240,000 200,939 39,061
Planning and zoning 1,278,800 1,316,153 990,075 326,078
Information technology 1,398,378 1,399,678 1,117,836 281,842
Human resources 673,178 678,254 625,665 52,589
Purchasing 489,546 486,170 455,579 30,591
Other general government 273,410 273,410 213,244 60,166
Total general government 7,501,385 7,835,752 6,821,906 1,013,846
Public safety
Law enforcement 14,618,734 14,970,800 14,632,333 338,467
Fire control 16,585,687 18,141,311 17,494,260 647,051
Total public safety 31,204,421 33,112,111 32,126,593 985,518
Physical environment 3,668,294 3,877,806 3,403,044 474,762
Transportation 2,172,575 2,389,107 1,991,619 397,488
Economic environment 130,000 150,300 148,089 2,211
Culture and recreation 4,578,480 4,655,010 3,798,403 856,607
Debt service:
Principal payments 92,400 333,695 354,389 (20,694)
Interest and fiscal charges 11,170 118,600 116,138 2,462
Capital outlay 3,352,907 3,872,329 2,755,856 1,116,473
Total expenditures 52,711,632 56,344,710 51,516,037 4,828,673
Excess of revenues over expenditures (1,820,991) (1,456,169) 5,614,826 7,070,995
Budgeted Amounts
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual - General Fund (Continued)
- 85 -
(continued)
Variances
Final Budget
Positive/
For the year ended September 30, 2024 Original Final Actual Amounts (Negative)
Other Financing Sources
Transfers in 3,127,500 3,877,500 4,003,116 125,616
Transfers out (1,766,746) (3,059,746) (1,508,372) 1,551,374
Proceeds from sale of capital assets 17,000 73,000 118,084 45,084
Proceeds from financed purchases - 945,000 944,934 (66)
Total other financing sources 1,377,754 1,835,754 3,557,762 1,722,008
Net change in fund balances (443,237) 379,585 9,172,588 8,793,003
Fund balance, beginning of year 35,385,537 35,385,537 35,385,537 -
Fund balance, end of year 34,942,300$ 35,765,122$ 44,558,125$ 8,793,003$
Budgeted Amounts
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual – Infrastructure
- 86 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Sales taxes 5,500,000$ 5,500,000$ 5,899,881$ 399,881$
Interest income 5,000 94,600 164,037 69,437
Rental and other income - - 4,695 4,695
Total revenues 5,505,000 5,594,600 6,068,613 474,013
Expenditures
Public safety - 16,000 10,082 5,918
Transportation 2,075,000 1,875,000 1,619,902 255,098
Capital outlay 2,138,830 2,882,906 1,806,241 1,076,665
Total expenditures 4,213,830 4,773,906 3,436,225 1,337,681
Excess of revenues over expenditures 1,291,170 820,694 2,632,388 1,811,694
Other Financing Sources
Transfers out (2,010,115) (2,010,115) (2,010,115) -
Total other financing sources (2,010,115) (2,010,115) (2,010,115) -
Net change in fund balances (718,945) (1,189,421) 622,273 1,811,694
Fund balance, beginning of year 5,933,096 5,933,096 5,933,096 -
Fund balance, end of year 5,214,151$ 4,743,675$ 6,555,369$ 1,811,694$
-
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual – Building Services
- 87 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Licenses and permits 2,110,000$ 2,110,000$ 2,375,508$ 265,508$
Charges for services 4,200 4,200 6,561 2,361
Interest income 50,000 121,000 202,648 81,648
Rental and other income - - 714 714
Total revenues 2,164,200 2,235,200 2,585,431 350,231
Expenditures
Public safety 2,043,121 2,205,908 1,746,547 459,361
Capital outlay 49,500 72,500 59,625 12,875
Total expenditures 2,092,621 2,278,408 1,806,172 472,236
Excess of revenues over expenditures 71,579 (43,208) 779,259 822,467
Other Financing Sources
Proceeds from sale of capital assets - - 270 270
Total other financing sources 270 270
Net change in fund balances 71,579 (43,208) 779,529 822,737
Fund balance, beginning of year 3,334,564 3,334,564 3,334,564 -
Fund balance, end of year 3,406,143$ 3,291,356$ 4,114,093$ 822,737$
-
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
City of Clermont, Florida
Budgetary Notes to Required Supplementary Information
- 88 -
Note 1: BUDGETARY INFORMATION
The City adheres to the following 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.
• A separate City board meeting is also held to approve the budget.
• 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 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.
City of Clermont, Florida
Schedules of Changes in Net Pension Liability and Related Ratios
General Employees’ Pension Fund
- 89 -
Schedule of Changes in Net Pension Liability (Asset) and Related Ratios
Last 10 Fiscal Years
2025 2024 2023
Total Pension Liability
Service cost -$ -$ -$
Interest 11,722 4,935 14,823
Differences between expected
and actual experience (49,817) - (14,983)
Changes of assumptions 1,433 - -
Benefit payments, including refunds of
employee contributions (18,176) (22,026) (27,416)
Net change in total pension liability (54,838) (17,091) (27,576)
Total pension liability, beginning 182,554 199,645 227,221
Total pension liability, ending (a)127,716$ 182,554$ 199,645$
Plan Fiduciary Net Position
Contributions - Employer -$ 7,413$ 7,413$
Contributions - Employee - - -
Net investment income 16,506 38,410 18,592
Benefit payments, including refunds of
employee contributions (18,176) (22,026) (27,416)
Other
Administrative expense (9,714) (1,424) (1,437)
Net change in plan fiduciary net position (11,384) 22,373 (2,848)
Plan fiduciary net position, beginning 240,531 218,158 221,006
Plan fiduciary net position, ending (b)229,147 240,531 218,158
Net pension liability (asset) - ending (a) - (b)(101,431)$ (57,977)$ (18,513)$
Plan fiduciary net position as a percentage of
the total pension liability 179.42%131.76%109.27%
Covered payroll -$ -$ -$
Net pension asset as a percentage of
covered payroll N/A N/A N/A
City of Clermont, Florida
Schedules of Changes in net Pension Liability and Related Ratios
General Employees’ Pension Fund (Continued)
- 90 -
2022 2021 2020 2019 2018 2017 2016
-$ -$ -$ -$ -$ -$ -$
15,382 21,619 21,619 21,414 23,435 22,569 22,224
(29,410) - - 33,131 - 17,118 12,118
- - - - - 28,462 31,161
(35,443) (49,982) (49,982) (53,410) (51,013) (57,338) (61,435)
(49,471) (28,363) (28,363) 1,135 (27,578) 10,811 4,068
276,692 305,055 333,418 332,283 359,861 349,050 344,982
227,221$ 276,692$ 305,055$ 333,418$ 332,283$ 359,861$ 349,050$
5,582$ 5,582$ 11,018$ 11,018$ 8,767$ 8,767$ -$
- - - - - - -
(34,153) 51,033 16,320 14,396 24,889 44,469 29,829
(35,443) (38,315) (42,156) (53,410) (57,338) (57,338) (61,435)
(89)
(1,536) (5,235) (5,271) (1,597) (1,681) (5,457) (1,757)
(65,639) 13,065 (20,089) (29,593) (25,363) (9,559) (33,363)
286,645 273,580 293,669 323,262 348,625 358,184 391,547
221,006 286,645 273,580 293,669 323,262 348,625 358,184
6,215$ (9,953)$ 31,475$ 39,749$ 9,021$ 11,236$ (9,134)$
97.26%103.60%89.68%88.08%97.29%96.88%102.62%
-$ -$ -$ -$ -$ -$ -$
N/A N/A N/A N/A N/A N/A N/A
City of Clermont, Florida
Schedules of Contributions and Investment Returns-
General Employees’ Pension Fund
- 91 -
Schedule of Contributions
Last 10 Fiscal Years
Contribution
in Relation to Percentage
Actuarially Actuarially Contribution of Covered
Year Determined Determined (Excess)Covered Payroll
Ended Contribution Contribution Deficiency Payroll Contributed
September 30 (a)(b)(a-b)(c)(b/c)
2025 -$ -$ -$ -$ N/A
2024 7,413 7,413 - - N/A
2023 7,413 7,413 - - N/A
2022 5,582 5,582 - - N/A
2021 5,582 5,582 - - N/A
2020 11,018 11,018 - - N/A
2019 11,018 11,018 - - N/A
2018 8,767 8,767 - - N/A
2017 8,767 8,767 - - N/A
2016 - - - - N/A
Notes to Schedule
Valuation Date: 10/1/24
Note 1: Actuarially determined contribution rates are calculated as of October 1, two years
prior to the end of the fiscal in which contributions are reported.
Last 10 Fiscal Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
4.3%4.3%4.3%-12.6%-12.6%5.9%4.2%4.2%7.0%4.1%
Annual money-weighted rate of return net of investment expense
General Employees
City of Clermont, Florida
Schedules of Changes in Net Pension Liability and Related Ratios
Police Officers’ Pension Fund
- 92 -
Schedule of Changes in Net Pension Liability (Asset) and Related Ratios
Last 10 Fiscal Years
2025 2024 2023
Total Pension Liability
Service cost 1,733,463$ 1,601,699$ 1,613,394$
Interest 2,240,354 2,094,104 1,867,082
Differences between expected
and actual experience 61,657 (778,346) 475,621
Changes of assumptions - - -
Benefit payments, including refunds of
employee contributions (897,228) (877,712) (614,709)
Net change in total pension liability 3,138,246 2,039,745 3,341,388
Total pension liability, beginning 30,909,283 28,869,538 25,528,150
Total pension liability, ending (a)34,047,529$ 30,909,283$ 28,869,538$
Plan Fiduciary Net Position
Contributions - Employer 1,527,796$ 937,728$ 1,125,138$
Contributions - State - - -
Contributions - Employee 508,159 515,620 304,306
Net investment income 3,850,658 5,294,213 1,872,682
Benefit payments, including refunds of
employee contributions (897,228) (877,712) (614,709)
Administrative expense (91,854) (84,991) (87,672)
Net change in plan fiduciary net position 4,897,531 5,784,858 2,599,745
Plan fiduciary net position, beginning 33,089,319 27,304,461 24,704,716
Plan fiduciary net position, ending (b)37,986,850 33,089,319 27,304,461
Net pension liability (asset) - ending (a) - (b)(3,939,321)$ (2,180,036)$ 1,565,077$
Plan fiduciary net position as a percentage of
the total pension liability 111.57%107.05%94.58%
Covered payroll 6,038,952$ 5,594,545$ 5,515,877$
Net pension (asset) liability as a percentage of
covered payroll (65.23%)(38.97%)28.37%
City of Clermont, Florida
Schedules of Changes in Net Pension Liability and Related Ratios
Police Officers’ Pension Fund (Continued)
- 93 -
2022 2021 2020 2019 2018 2017 2016
1,497,597$ 1,335,386$ 1,048,755$ 1,048,755$ 941,659$ 941,659$ 836,661$
1,743,942 1,535,299 1,300,909 1,290,431 1,170,292 1,049,633 749,652
(610,237) 260,114 - (610,614) (108,041) (204,387) (211,987)
- 295,495 - 1,209 - 576,133 3,155,202
(866,834) (550,996) (446,562) (403,441) (381,207) (640,378) (342,697)
1,764,468 2,875,298 1,903,102 1,326,340 1,622,703 1,722,660 4,186,831
23,763,682 20,888,384 18,985,282 17,658,942 16,036,239 14,313,579 10,126,748
25,528,150$ 23,763,682$ 20,888,384$ 18,985,282$ 17,658,942$ 16,036,239$ 14,313,579$
1,380,471$ 1,084,478$ 943,063$ 891,380$ 944,540$ 756,302$ 632,411$
- - - - - - -
293,891 268,568 238,416 175,526 120,269 116,332 108,806
(4,966,541) 4,959,439 2,346,071 1,330,033 1,245,288 1,908,188 1,115,432
(866,834) (550,996) (446,562) (403,441) (381,207) (640,378) (342,697)
(74,964) (59,823) (61,414) (102,202) (51,400) (49,645) (30,651)
(4,233,977) 5,701,666 3,019,574 1,891,296 1,877,490 2,090,799 1,483,301
28,938,693 23,237,027 20,217,453 18,326,157 16,448,667 14,357,868 12,874,567
24,704,716 28,938,693 23,237,027 20,217,453 18,326,157 16,448,667 14,357,868
823,434$ (5,175,011)$ (2,348,643)$ (1,232,171)$ (667,215)$ (412,428)$ (44,289)$
96.77%121.78%111.24%106.49%103.78%102.57%100.31%
5,341,730$ 4,730,329$ 3,813,876$ 3,813,876$ 3,366,613$ 3,366,613$ 3,366,613$
15.42%(109.40%)(61.58%)(32.31%)(19.82%)(12.25%)(1.32%)
City of Clermont, Florida
Schedules of Contributions and Investment Returns
Police Officers’ Pension Fund
- 94 -
Schedule of Contributions
Last 10 Fiscal Years
Contribution
in Relation to Percentage
Actuarially Actuarially Contribution of Covered
Year Determined Determined (Excess)Covered Payroll
Ended Contribution Contribution Deficiency Payroll Contributed
September 30 (a)(b)(a-b)(c)(b/c)
2025 1,830,507$ 1,527,796$ 302,711$ 6,038,952$ 25.30%
2024 1,226,031 937,728 288,303 5,594,545 16.76%
2023 685,294 1,125,138 (439,844) 5,515,877 20.40%
2022 661,843 1,380,471 (718,628) 5,341,730 25.84%
2021 1,084,478 1,084,478 - 4,730,329 22.93%
2020 985,611 943,063 42,548 3,813,876 24.73%
2019 936,834 891,380 45,454 3,813,876 23.37%
2018 905,229 944,540 (39,311) 3,366,613 28.06%
2017 875,593 756,302 119,291 3,366,613 22.46%
2016 640,139 632,411 7,728 Not available Not available
Notes to Schedule
Valuation Date: 10/1/24
Note 1: Actuarially determined contribution rates are calculated as of October 1, two years
prior to the end of the fiscal in which contributions are reported.
Last 10 Fiscal Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
11.59%19.3%7.6%-17.8%21.4%4.2%4.2%7.0%4.1%4.1%
Police Employees
Annual money-weighted rate of return net of investment expense
City of Clermont, Florida
Schedules of Changes in Net Pension Liability and Related Ratios
Firefighters’ Pension Fund
- 95 -
Schedule of Changes in Net Pension Liability (Asset) and Related Ratios
Last 10 Fiscal Years
2025 2024 2023
Total Pension Liability
Service cost 1,759,914$ 1,729,559$ 1,911,603$
Interest 2,574,720 2,309,401 1,992,088
Change of benefit terms 473 - 400,717
Differences between expected
and actual experience 436,485 184,072 954,081
Changes of assumptions - - -
Benefit payments, including refunds of
employee contributions (386,296) (323,711) (298,246)
Net change in total pension liability 4,385,296 3,899,321 4,960,243
Total pension liability, beginning 35,730,596 31,831,275 26,871,032
Total pension liability, ending (a)40,115,892$ 35,730,596$ 31,831,275$
Plan Fiduciary Net Position
Contributions - Employer 3,072,337$ 2,314,763$ 1,419,744$
Contributions - State - - -
Contributions - Employee 646,818 447,118 388,764
Net investment income 4,401,039 6,003,465 1,920,155
Benefit payments, including refunds of
employee contributions (386,296) (323,711) (298,246)
Administrative expense (79,320) (80,594) (74,333)
Net change in plan fiduciary net position 7,654,578 8,361,041 3,356,084
Plan fiduciary net position, beginning 37,713,439 29,352,398 25,996,314
Plan fiduciary net position, ending (b)45,368,017 37,713,439 29,352,398
Net pension liability (asset) - ending (a) - (b)(5,252,125)$ (1,982,843)$ 2,478,877$
Plan fiduciary net position as a percentage of
the total pension liability 113.09%105.55%92.21%
Covered payroll 6,524,398$ 6,239,422$ 6,384,519$
Net pension asset as a percentage of
covered payroll (80.50%)(31.78%)38.83%
City of Clermont, Florida
Schedules of Changes in Net Pension Liability and Related Ratios
Firefighters’ Pension Fund (Continued)
- 96 -
2022 2021 2020 2019 2018 2017 2016
1,700,162$ 1,555,175$ 1,313,842$ 1,313,842$ 1,025,516$ 1,025,516$ 784,710$
1,768,108 1,542,677 1,272,336 1,141,847 996,576 782,004 515,458
- - - - - - -
(231,493) (18,454) - (158,435) (121,553) 633,143 (208,729)
- 294,977 - 1,079,623 - 634,356 2,505,255
(190,826) (283,350) (288,092) (99,705) (25,120) (4,513) (1,324)
3,045,951 3,091,025 2,298,086 3,277,172 1,875,419 3,070,506 3,595,370
23,825,081 20,734,056 18,435,970 15,158,798 13,283,379 10,212,873 6,617,503
26,871,032$ 23,825,081$ 20,734,056$ 18,435,970$ 15,158,798$ 13,283,379$ 10,212,873$
1,799,505$ 1,606,558$ 1,649,080$ 1,585,514$ 1,278,757$ 797,699$ 491,818$
- - - - - - -
324,115 316,273 220,098 231,935 200,118 238,785 279,064
(5,026,058) 4,864,047 2,267,101 1,240,965 1,063,078 1,599,687 858,136
(190,826) (283,350) (288,092) (99,705) (25,120) (4,513) (1,324)
(101,784) (83,741) (65,477) (98,170) (35,839) (49,761) (28,346)
(3,195,048) 6,419,787 3,782,710 2,860,539 2,480,994 2,581,897 1,599,348
29,191,362 22,771,575 18,988,865 16,128,326 13,647,332 11,065,435 9,466,087
25,996,314 29,191,362 22,771,575 18,988,865 16,128,326 13,647,332 11,065,435
874,718$ (5,366,281)$ (2,037,519)$ (552,895)$ (969,528)$ (363,953)$ (852,562)$
96.74%122.52%109.83%103.00%106.40%102.74%108.35%
5,633,189$ 5,089,447$ 4,438,530$ 4,438,530$ 3,602,745$ 3,602,745$ 2,798,049$
15.53%(105.44%)(45.91%)(12.46%)(26.91%)(10.10%)(30.47%)
City of Clermont, Florida
Schedules of Contributions and Investment Returns
Firefighters’ Pension Fund
- 97 -
Schedule of Contributions
Last 10 Fiscal Years
Contribution
in Relation to Percentage
Actuarially Actuarially Contribution of Covered
Year Determined Determined (Excess)Covered Payroll
Ended Contribution Contribution Deficiency Payroll Contributed
September 30 (a)(b)(a-b)(c)(b/c)
2025 3,458,182$ 3,072,337$ 385,845$ 6,524,398$ 47.09%
2024 2,820,813 2,314,763 506,050 6,239,422 37.10%
2023 1,025,431 1,419,744 (394,313) 6,384,519 22.24%
2022 1,170,865 1,799,505 (628,640) 5,633,189 31.94%
2021 1,547,766 1,606,558 (58,792) 5,089,447 31.57%
2020 1,648,674 1,649,080 (406) 4,438,530 37.15%
2019 1,585,514 1,585,514 - 4,438,530 35.72%
2018 1,284,255 1,278,757 5,498 3,602,745 35.49%
2017 1,113,095 797,699 315,396 3,602,745 22.14%
2016 647,476 491,819 155,657 2,798,049 17.58%
Notes to Schedule
Valuation Date: 10/1/24
Note 1: Actuarially determined contribution rates are calculated as of October 1, two years
prior to the end of the fiscal in which contributions are reported.
Last 10 Fiscal Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
11.37%19.3%7.5%-16.9%20.9%4.2%4.2%7.0%4.1%4.1%
Fire Employees
Annual money-weighted rate of return net of investment expense
City of Clermont, Florida
Schedule of Methods and Assumptions -Pension Funds (All)
- 98 -
Methods and assumptions used to determine contribution rates:
General Employees Police Employees Fire Employees
Actuarial cost method Aggregate Aggregate Aggregate
Amortization method N/A Level % of pay Level % of pay
Remaining amortization
period 30 years 30 years 30 years
Asset valuation method Market value Market value Market value
Inflation 2.75%2.5%2.5%
Payroll increases N/A 5.5% per year 5.5% per year
Salary increases N/A 6% per year 6% per year
*Interest rate 6.75%7.0%7.0%
Retirement age
N/A
Normal retirement
age, except those who
are eligible for early
retirement at ages 52-
54 assumed at rate of
20% per year
Normal retirement
age, except those who
are eligible for early
retirement at ages 52-
54 assumed at rate of
20% per year
Mortality Sex-distinct rates set
forth in the PUB 2010
Mortality Table, with
full generational
improvements in
mortality using Scale
MP-2018
Sex-distinct rates set
forth in the PUB 2010
Mortality Table, with
full generational
improvements in
mortality using Scale
MP-2018
Sex-distinct rates set
forth in the PUB 2010
Mortality Table, with
full generational
improvements in
mortality using Scale
MP-2018
*Interest rate is compounded annually, net of investment-related expenses, including inflation.
City of Clermont, Florida
Schedule of Changes in Total OPEB Liability and Related Ratios
- 99 -
As of and for the year ended December 31, 2025 2024 2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 777,143$ 992,853$ 1,205,574$ 1,137,810$ 760,368$ 740,666$ 721,475$ 496,316$
Interest 573,390 504,534 681,746 594,122 333,917 309,219 288,724 312,754
Changes of benefit term - - - - - -
Difference between expected and
actual experience - (1,798,333) - 107,807 - - 181,592 -
Changes of assumptions or other inputs (2,582,236) (3,099,300) 255,171 180,141 - - 2,106,772 (662,223)
Benefit payments (243,956) (235,970) (170,428) (160,421) (213,932) (242,837) (236,545) (109,600)
Net change in total OPEB liability (1,475,659) (3,636,216) 1,972,063 1,859,459 880,353 807,048 3,062,018 37,247
Total OPEB liability - beginning 13,628,915 17,265,131 15,293,068 13,433,609 12,553,256 11,746,208 8,684,190 8,646,943
Total OPEB liability - ending 12,153,256 13,628,915 17,265,131 15,293,068 13,433,609 12,553,256 11,746,208 8,684,190
Plan Fiduciary Net Position
Contributions - employer 60,258 60,258 60,258 60,258 60,258 60,258 60,258 60,258
Benefit payments (60,258) (60,258) (60,258) (60,258) (60,258) (60,258) (60,258) (60,258)
Net change in plan fiduciary net position - - - - - - - -
Plan fiduciary net position - beginning - - - - - - - -
Plan fiduciary net position - ending - - - - - - - -
Total OPEB liability 12,153,256$ 13,628,915$ 17,265,131$ 15,293,068$ 13,433,609$ 12,553,256$ 11,746,208$ 8,684,190$
Plan fiduciary net position as a percentage
of total OPEB liability 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Covered payroll 27,847,881$ 26,906,165$ 23,611,610$ 22,813,150$ 19,075,627$ 19,075,627$ 18,701,595$ 14,293,247$
Total OPEB liability as a percentage of
covered payroll 43.64%50.65%73.12%67.04%70.42%65.81%62.81%60.76%
only for those years which information is available.
* The following discount rate changes:
Increased rate from 3.81% to 4.90% in 2025
* GASB Codification P52 requires an employer to disclose a 10-year history. However, until a full 10-year trend is compiled, information will be presented
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OTHER SUPPLEMENTARY INFORMATION
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City of Clermont, Florida
Combining Balance Sheet – Nonmajor Governmental Funds
- 100 -
Total
Police Fire Police Total Nonmajor
Recreation Impact Impact Community Tree Asset Special Revenue Governmental
September 30, 2025 Impact Fees Fees Fees Redevelopment Cemetary Replacement Forfeiture Funds Funds
Assets
Cash and cash equivalents -$ 8,196,580$ 1,782,741$ 4,480,638$ 1,460,235$ 603,395$ 1,048,411$ 312,253$ 17,884,253$ 17,884,253$
Investments - 1,430,695 361,584 916,409 269,143 412,264 - - 3,390,095 3,390,095
Other receivables - 1,915 1,095 1,272 820 2,063 - - 7,165 7,165
Prepaid items - - 8,358 - 350 348 - - 9,056 9,056
Due from other governments - - - - - - - 1,056 1,056 1,056
Total assets -$ 9,629,190$ 2,153,778$ 5,398,319$ 1,730,548$ 1,018,070$ 1,048,411$ 313,309$ 21,291,625$ 21,291,625$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ 25,624$ 22$ 18,974$ 19,828$ 24,233$ 159$ -$ 88,840$ 88,840$
Accrued liabilities - - - - - 4,203 - - 4,203 4,203
Total liabilities - 25,624 22 18,974 19,828 28,436 159 - 93,043 93,043
Fund balances
Non-spendable - - 8,358 - 350 348 - - 9,056 9,056
Restricted
Capital improvements - - - - 1,710,370 - - - 1,710,370 1,710,370
Public safety - - 2,145,398 5,379,345 - - - 313,309 7,838,052 7,838,052
Economic development - - - - - 989,286 1,048,252 - 2,037,538 2,037,538
Recreation improvement - 9,603,566 - - - - - - 9,603,566 9,603,566
Total fund balances - 9,603,566 2,153,756 5,379,345 1,710,720 989,634 1,048,252 313,309 21,198,582 21,198,582
Total liabilities and fund balances -$ 9,629,190$ 2,153,778$ 5,398,319$ 1,730,548$ 1,018,070$ 1,048,411$ 313,309$ 21,291,625$ 21,291,625$
Special Revenue Funds
(Formerly
major)
ARPA
City of Clermont, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Governmental Funds
- 101 -
Police Fire Police Total
Total
Nonmajor
For the year ended Recreation Impact Impact Community Tree Asset Special Revenue Governmental
September 30, 2025 Impact Fees Fees Fees Redevelopment Cemetary Replacement Forfeiture Funds Funds
Revenues
Taxes -$ -$ -$ -$ 877,337$ -$ -$ -$ 877,337$ 877,337$
Intergovernmental 3,092,329 - - - - - - 32,041 3,124,370 3,124,370
Charges for services - - - - - 171,501 - - 171,501 171,501
Fines and forfeitures - - - - - - - 85,360 85,360 85,360
Impact fees - 2,590,911 660,566 1,450,754 - - - - 4,702,231 4,702,231
Interest and other - 251,080 59,699 125,679 45,007 38,370 20,273 4,016 544,124 544,124
Miscellaneous and other taxes - - - - 56 - 177,690 - 177,746 177,746
Total revenues 3,092,329 2,841,991 720,265 1,576,433 922,400 209,871 197,963 121,417 9,682,669 9,682,669
Expenditures
Current
General government - - - - 295,400 - - - 295,400 295,400
Public safety - - 13,789 906 - - - 9,440 24,135 24,135
Physical environment - - - - - 181,380 - - 181,380 181,380
Culture and recreation - 1,138 - - - - - - 1,138 1,138
Debt service
Principal - 124,800 - - - - - - 124,800 124,800
Capital outlay - 540,222 365,386 583,185 1,942 39,670 159 - 1,530,564 1,530,564
Total expenditures - 666,160 379,175 584,091 297,342 221,050 159 9,440 2,157,417 2,157,417
Excess (deficiency) of revenues
over (under) expenditures 3,092,329 2,175,831 341,090 992,342 625,058 (11,179) 197,804 111,977 7,525,252 7,525,252
Other Financing Sources (Uses)
Transfers in - - 1,219,291 - - - 72,616 1,291,907 1,291,907
Transfers out (3,092,329) (564,015) (14,630) - - - - - (3,670,974) (3,670,974)
Total other financing sources (uses)(3,092,329) (564,015) (14,630) 1,219,291 - - - 72,616 (2,379,067) (2,379,067)
Net change in fund balances - 1,611,816 326,460 2,211,633 625,058 (11,179) 197,804 184,593 5,146,185 5,146,185
Fund balances, beginning of year - 7,991,750 1,827,296 3,167,712 1,085,662 1,000,813 850,448 128,716 16,052,397 16,052,397
Fund balances, end of year -$ 9,603,566$ 2,153,756$ 5,379,345$ 1,710,720$ 989,634$ 1,048,252$ 313,309$ 21,198,582$ 21,198,582$
Special Revenue Funds
(Formerly major)
ARPA
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual – ARPA
- 102 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Intergovernmental revenues -$ -$ 3,092,329$ 3,092,329$
Total revenues - - 3,092,329 3,092,329
Expenditures
Total expenditures - - - -
Excess of revenues over expenditures - - 3,092,329 3,092,329
Other Financing Sources
Transfers out - (3,092,329) (3,092,329) -
Total other financing sources - (3,092,329) (3,092,329) -
Net change in fund balances - (3,092,329) - 3,092,329
Fund balance, beginning of year - - - -
Fund balance, end of year -$ (3,092,329)$ -$ 3,092,329$
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
Budgeted Amounts
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual – Capital Projects
- 103 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Interest income 20,000$ 105,600$ 226,100$ 120,500$
Total revenues 20,000 105,600 226,100 120,500
Expenditures
Capital outlay - 32,783 - 32,783
Total expenditures - 32,783 - 32,783
Excess of revenues over expenditures 20,000 72,817 226,100 153,283
Other Financing Sources
Transfers out - - - -
Total other financing sources - - - -
Net change in fund balances 20,000 72,817 226,100 153,283
Fund balance, beginning of year 4,609,970 4,609,970 4,609,970 -
Fund balance, end of year 4,629,970$ 4,682,787$ 4,836,070$ 153,283$
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
Budgeted Amounts
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual – Debt Service
- 104 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Interest income 200,000$ 271,500$ 335,978$ 64,478$
Total revenues 200,000 271,500 335,978 64,478
Expenditures
Debt service:
Principal 2,827,815 2,827,815 2,827,813 2
Interest and other related charges 1,465,965 1,465,965 1,465,946 19
Total expenditures 4,293,780 4,293,780 4,293,759 21
Excess of revenues over expenditures (4,093,780) (4,022,280) (3,957,781) 64,499
Other Financing Sources
Transfers in 5,193,775 5,193,775 4,293,775 (900,000)
Transfers out (7,000,000) (14,000,000) (12,304,591) 1,695,409
Total other financing sources (1,806,225) (8,806,225) (8,010,816) 1,695,409
Net change in fund balances (5,900,005) (12,828,505) (11,968,597) 1,759,908
Fund balance, beginning of year 15,520,607 15,520,607 15,520,607 -
Fund balance, end of year 9,620,602$ 2,692,102$ 3,552,010$ 1,759,908$
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
Budgeted Amounts
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Recreation Impact Fee
Special Revenue Fund
- 105 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Impact fees 4,628,816$ 2,400,000$ 2,590,911$ 190,911$
Interest income 90,000 142,500 251,080 108,580
Total revenues 4,718,816 2,542,500 2,841,991 299,491
Expenditures
Culture and recreation - 1,200 1,138 62
Debt service:
Principal - 124,800 124,800 -
Capital outlay - 1,108,494 540,222 568,272
Total expenditures - 1,234,494 666,160 568,334
Excess of revenues over expenditures 4,718,816 1,308,006 2,175,831 867,825
Other Financing Sources
Transfers out (564,015) (564,015) (564,015) -
Total other financing sources (564,015) (564,015) (564,015) -
Net change in fund balances 4,154,801 743,991 1,611,816 867,825
Fund balance, beginning of year 7,991,750 7,991,750 7,991,750 -
Fund balance, end of year 12,146,551$ 8,735,741$ 9,603,566$ 867,825$
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual -Police Impact Fee
Special Revenue Fund
- 106 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Impact fees 733,650$ 733,650$ 660,566$ (73,084)$
Interest income 25,000 25,000 59,699 34,699
Total revenues 758,650 758,650 720,265 (38,385)
Expenditures
Public safety 5,000 25,000 13,789 11,211
Capital outlay 410,000 390,000 365,386 24,614
Total expenditures 415,000 415,000 379,175 35,825
Excess of revenues over expenditures 343,650 343,650 341,090 (2,560)
Other Financing Sources
Transfers out (14,630) (14,630) (14,630) -
Total other financing sources (14,630) (14,630) (14,630) -
Net change in fund balances 329,020 329,020 326,460 (2,560)
Fund balance, beginning of year 1,827,296 1,827,296 1,827,296 -
Fund balance, end of year 2,156,316$ 2,156,316$ 2,153,756$ (2,560)$
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Fire Impact Fee
Special Revenue Fund
- 107 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Impact fees 1,242,000$ 1,765,500$ 1,450,754$ 314,746$
Interest income 40,000 64,000 125,679 61,679
Total revenues 1,282,000 1,829,500 1,576,433 376,425
Expenditures
Public safety - 1,350 906 444
Capital outlay - 983,726 583,185 400,541
Total expenditures - 985,076 584,091 400,985
Excess of revenues over expenditures 1,282,000 844,424 992,342 777,410
Other Financing Sources
Transfers in - 1,220,000 1,219,291 (709)
Total other financing sources - 1,220,000 1,219,291 (709)
Net change in fund balances 1,282,000 2,064,424 2,211,633 776,701
Fund balance, beginning of year 3,167,712 3,167,712 3,167,712 -
Fund balance, end of year 4,449,712$ 5,232,136$ 5,379,345$ 776,701$
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Community Redevelopment
Special Revenue Fund
- 108 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Ad valorem taxes 437,000$ 878,000$ 877,337$ (663)$
Interest income 8,000 45,000 45,007 7
Miscellaneous revenue - - 56 56
Total revenues 445,000 923,000 922,400 (600)
Expenditures
General government 845,281 845,281 297,342 547,939
Total expenditures 845,281 845,281 297,342 547,939
Excess of revenues over expenditures (400,281) 77,719 625,058 547,339
Other Financing Sources
Transfers in 400,281 - - -
Total other financing sources 400,281 - - -
Net change in fund balances - 77,719 625,058 547,339
Fund balance, beginning of year 1,085,662 1,085,662 1,085,662 -
Fund balance, end of year 1,085,662$ 1,163,381$ 1,710,720$ 547,339$
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Cemetery
Special Revenue Fund
- 109 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Charges for services 175,000$ 175,000$ 171,501$ (3,499)$
Interest income 20,000 20,000 38,370 18,370
Total revenues 195,000 195,000 209,871 14,871
Expenditures
Physical environment 182,315 187,880 181,380 6,500
Capital outlay 90,000 86,317 39,670 46,647
Total expenditures 272,315 274,197 221,050 53,147
Excess of revenues over expenditures (77,315) (79,197) (11,179) 68,018
Net change in fund balances (77,315) (79,197) (11,179) 68,018
Fund balance, beginning of year 1,000,813 1,000,813 1,000,813 -
Fund balance, end of year 923,498$ 921,616$ 989,634$ 68,018$
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Tree Replacement
Special Revenue Fund
- 110 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Interest income -$ 6,000$ 20,273$ 14,273$
Rental and other income - 120,000 177,690 57,690
Total revenues - 6,000 197,963 191,963
Expenditures
Capital outlay - 19,000 159 18,841
Total expenditures - 19,000 159 18,841
Excess of revenues over expenditures - (13,000) 197,804 210,804
Net change in fund balances - (13,000) 197,804 210,804
Fund balance, beginning of year 850,448 850,448 850,448 -
Fund balance, end of year 850,448$ 837,448$ 1,048,252$ 210,804$
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
City of Clermont, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Police Asset Forfeiture
Special Revenue Fund
- 111 -
Variances
Final Budget
Positive/
For the year ended September 30, 2025 Original Final Actual Amounts (Negative)
Revenue
Intergovernmental revenues -$ 22,400$ 32,041$ 9,641$
Fines and forfeitures - 16,000 85,360 69,360
Interest income 1,000 1,000 4,016 3,016
Total revenues 1,000 39,400 121,417 82,017
Expenditures
Public safety - 14,500 9,440 5,060
Total expenditures - 14,500 9,440 5,060
Excess of revenues over expenditures 1,000 24,900 111,977 87,077
Other Financing Sources
Transfers in - 73,000 72,616 (384)
Total other financing sources - 73,000 72,616 (384)
Net change in fund balances 1,000 97,900 184,593 86,693
Fund balance, beginning of year 128,716 128,716 128,716 -
Fund balance, end of year 129,716$ 226,616$ 313,309$ 86,693$
Budgeted Amounts
Note that this schedule is prepared on a budgetary basis, but is not different from Generally Accepted Accounting
Principles (GAAP) in the presentation.
THIS PAGE INTENTIONALLY LEFT BLANK
STATISTICAL SECTION
- 112 -
STATISTICAL SECTION
This part of the City of Clermont, Florida's Annual Comprehensive Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the City's overall financial health.
Table of Contents
A. Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Schedule A1 Net Position by Component
Schedule A2 Changes in Net Position – Governmental Funds
Schedule A3 Fund Balances – Governmental Funds
Schedule A4 Changes in Fund Balances – Governmental Funds
B. Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local own-
source revenues - ad valorem property taxes, occupational license taxes, and building permits
revenues.
Schedule B1 Tax Revenues by Source Governmental Funds
Schedule B2 Assessed Value and Estimated Actual Value of Taxable Property
Schedule B3 Direct and Overlapping Property Tax Rates
Schedule B4 Principal Property Taxpayers
Schedule B5 Property Tax Levies and Collections
- 113 -
Statistical Section (Continued)
C. Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current
levels of debt outstanding and the City's ability to issue additional debt in the future, as necessary.
Schedule C1 Ratios of Outstanding Debt by Type
Schedule C2 Direct and Overlapping Governmental Activities by Debt
Schedule C3 Pledged Revenue Coverage
D. Demographic and Economic Information Financial Trends
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Schedule D1 Demographic and Economic Statistics
Schedule D2 Principal Employers
Schedule D3 Principal Water Customers
Schedule D4 Principal Sewer Customers
E. Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the activities it
performs.
Schedule E1 Full-time Equivalent Employees
Schedule E2 Operating Indicators by Function/Program
Schedule E3 Capital Asset Statistics by Function/Program
Schedule E4 Impact Fees Collected
Additional Notes
Unless otherwise noted, the information in these schedules is derived from the City’s Annual
Comprehensive Financial Report (ACFR) for the relevant year.
City of Clermont, Florida
Net Position by Component
- 114 -
Schedule A1
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net investment in capital assets 52,064$ 31,918$ 35,262$ 40,318$ 44,045$ 51,596$ 58,736$ 70,284$ 60,016$ 50,440$
Restricted 6,402 7,815 8,547 9,589 12,479 14,910 18,691 22,153 32,015 40,205
Unrestricted 11,182 30,117 27,925 24,795 23,874 21,847 26,252 23,217 28,302 39,111
Total net position 69,648 69,850 71,734 74,702 80,398 88,353 103,679 115,654 120,333 129,756
Business-type activities
Net investment in capital assets 60,150$ 63,131$ 69,322$ 66,104$ 68,310$ 88,520$ 86,667$ 96,286$ 142,094$ 152,537$
Restricted 13,959 17,127 16,904 20,362 24,195 25,420 30,273 30,500 27,867 14,264
Unrestricted 26,050 26,667 23,959 28,286 28,728 28,555 29,688 28,322 33,915 61,622
Total net position 100,159 106,925 110,185 114,752 121,233 142,495 146,628 155,108 203,876 228,423
Primary government
Net investment in capital assets 112,214 95,049 104,584 106,422 112,355 140,116 145,403 166,570 202,110 202,977
Restricted 20,361 24,942 25,451 29,951 36,674 40,330 48,964 52,653 59,882 54,469
Unrestricted 37,232 56,784 51,884 53,081 52,602 50,402 55,940 51,539 62,217 100,733
Total primary government net position 169,807$ 176,775$ 181,919$ 189,454$ 201,631$ 230,848$ 250,307$ 270,762$ 324,209$ 358,179$
(accrual basis of accounting)
(amounts expressed in thousands)
Accounting standards require that net position be reported in three components in the financial statements: net investment in capital assets; restricted; and unrestricted. Net position is considered
restricted only (a) when an external party, (b) a constitutional provision, (c) or enabling legislation imposes legally enforceable limits on how they may be used.
Fiscal Year
City of Clermont, Florida
Change in Net Position-Governmental Activities
- 115 -
Schedule A2
Last Ten Fiscal Years
Expenses 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities:
General government 4,157$ 4,240$ 2,870$ 5,023$ 5,678$ 5,918$ 5,322$ 6,476$ 5,803$ 8,145$
Public safety 17,381 20,297 20,306 22,104 22,733 23,713 28,925 32,141 34,478 36,070
Physical environment 788 805 2,104 863 2,470 2,763 3,773 3,603 4,004 4,404
Transportation/public works 2,185 2,009 2,255 2,387 1,843 2,264 1,928 2,335 2,381 3,612
Economic environment 209 1,197 385 532 847 665 1,337 1,279 132 165
Culture and recreation 5,460 4,491 5,752 5,954 3,722 4,044 4,227 3,988 4,412 4,366
Interest on long-term debt 355 434 839 836 753 687 635 588 1,016 1,549
Total governmental activities expenses 30,535 33,473 34,511 37,699 38,046 40,054 46,147 50,410 52,226 58,311
Business-type Activities:
Water 4,719 5,199 5,634 6,215 6,425 7,110 9,108 9,784 11,827 13,303
Sewer 6,866 6,909 6,849 7,373 7,742 8,172 9,176 10,491 11,531 12,605
Sanitation 2,925 2,869 3,073 3,027 3,294 3,467 3,994 3,925 4,704 5,643
Stormwater 1,142 1,190 1,360 1,614 1,901 1,991 2,443 2,552 2,837 2,937
Total business-type activities expenses 15,652 16,167 16,916 18,229 19,362 20,740 24,721 26,752 30,899 34,488
Total primary government expenses 46,187$ 49,640$ 51,427$ 55,928$ 57,408$ 60,794$ 70,868$ 77,162$ 83,125$ 92,799$
Program Revenues
Governmental Activities:
Charges for services:
General government 2,914$ 3,180$ 3,874$ 3,590$ 3,377$ 4,250$ 4,884$ 4,538$ 7,029$ 7,264$
Public safety 1,574 1,506 1,344 1,593 1,854 1,778 2,211 2,805 1,904 2,111
Culture and recreation 1,552 2,003 1,697 1,801 2,088 2,319 2,973 3,451 - -
Physical environment - - - - - - - - 2,553 2,591
Operating grants and contributions 1,822 1,456 2,233 2,061 3,307 2,026 14,583 5,089 1,763 3,954
Capital grants and contributions 163 309 428 625 625 2,206 23 1,535 - -
Total governmental activities program revenues 8,025 8,454 9,576 9,670 11,251 12,579 24,674 17,418 13,249 15,920
Business-type Activities:
Charges for services:
Water 6,162 6,516 6,461 6,868 7,631 8,466 8,826 10,068 15,756 16,829
Sewer 6,183 6,507 6,625 6,989 7,573 8,074 8,581 9,321 16,709 15,338
Sanitation 2,984 3,089 3,178 3,264 3,562 3,785 4,020 4,268 5,753 6,214
Stormwater 955 1,004 1,378 1,598 1,695 1,783 1,880 1,949 2,374 2,568
Operating grants and contributions 24 - - 2,109 1 - - - - -
Capital grants and contributions 4,026 6,906 4,535 5,316 6,575 22,094 6,313 7,282 21,996 5,656
Total business-type activities program revenues 20,334 24,022 22,177 26,144 27,037 44,202 29,620 32,888 62,588 46,605
Total primary government program revenues 28,359$ 32,476$ 31,753$ 35,814$ 38,288$ 56,781$ 54,294$ 50,306$ 75,837$ 62,525$
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
City of Clermont, Florida
Change in Net Position-Governmental Activities (Continued)
- 116 -
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net (Expense)/Revenue
Governmental activities (22,510)$ (25,019)$ (24,935)$ (28,029)$ (26,795)$ (27,477)$ (21,472)$ (32,993)$ (38,976)$ (42,391)$
Business-type activities 4,683 7,855 5,260 5,230 7,675 23,462 4,898 6,136 31,689 12,117
Total primary government net expense (17,827) (17,164) (19,675) (22,799) (19,120) (4,015) (16,574) (26,857) (7,287) (30,274)
Net Position
Governmental Activities:
Taxes:
Property taxes 8,998 9,748 10,747 11,945 13,090 14,354 15,350 20,882 24,869 27,775
Business taxes 140 133 160 157 162 144 145 156 2,049 2,099
Franchise taxes 2,712 2,619 2,817 3,142 3,203 3,360 3,813 4,536 4,330 5,084
Utility taxes 3,406 3,328 3,446 3,873 4,202 4,467 4,684 5,354 5,533 6,681
Intergovernmental-unrestricted 6,923 7,257 7,864 8,139 8,403 9,969 12,180 12,711 13,961 13,451
Interest and investment income 134 197 458 1,089 632 70 (143) 1,199 3,243 2,927
Gain (loss) on sale of capital assets 122 86 289 193 - - 42 94 105 (167)
Miscellaneous and other taxes 387 486 342 352 623 721 433 630 2,152 2,092
Contribution of nonfinancial asset - - - - - - - - 1,332 1,777
Transfers in/out 568 1,367 2,013 2,106 2,177 2,346 294 (594) (13,917) (9,905)
Total governmental activities 23,390 25,221 28,136 30,996 32,492 35,431 36,798 44,968 43,657 51,814
Business-type Activities:
Unrestricted investment earnings 260 255 379 1,295 953 106 (472) 1,752 2,896 2,524
Gain (loss) on sale of capital assets 120 24 31 150 29 40 1 - 2 -
Proceeds from insurance - - - - - - - - 263 -
Transfers in/out (568) (1,367) (2,013) (2,106) (2,177) (2,346) (294) 594 13,917 9,906
Total business-type activities (188) (1,088) (1,603) (661) (1,195) (2,200) (765) 2,346 17,078 12,430
Total primary government 23,202 24,133 26,533 30,335 31,297 33,231 36,033 47,314 60,735 64,244
Change in Net Position
Governmental activities 880 202 3,202 2,968 5,697 7,954 15,326 11,974 4,680 9,423
Business-type activities 4,495 6,767 3,657 4,568 6,480 21,262 4,133 8,482 48,767 24,547
Total primary government 5,375$ 6,969$ 6,859$ 7,536$ 12,177$ 29,216$ 19,459$ 20,456$ 53,447$ 33,970$
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
City of Clermont, Florida
Fund Balances-Governmental Funds
- 117 -
Schedule A3
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Unreserved - - - - - - - - - -
Nonspendable 548 578 641 283 356 453 462 1,847 3,865 4,796
Restricted 259 266 228 205 359 448 418 437 - -
Assigned - 3 3 18 3,227 1,390 1,368 1,647 3,665 3,156
Unassigned 7,886 7,137 7,104 8,182 7,859 11,617 17,840 22,023 27,856 36,606
Total general fund 8,693 7,984 7,976 8,688 11,801 13,908 20,088 25,954 35,386 44,558
All other governmental funds
Reserved - - - - - - - - - -
Unreserved, reported in:
Nonmajor funds - - - - - - - - -
Major funds - - - - - - - - -
Nonspendable 1,922 1,683 4 7 9 13 10 13 104 51
Restricted 4,310 5,885 8,361 9,376 12,111 14,450 18,263 21,702 45,347 40,205
Assigned 1,226 22,621 21,720 18,700 15,476 11,215 11,198 6,417 - -
Unassigned - - - - - - - - - -
Total all other governmental funds 7,458$ 30,189$ 30,085$ 28,083$ 27,596$ 25,678$ 29,471$ 28,132$ 45,451$ 40,256$
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
City of Clermont, Florida
Change in Fund Balances-Governmental Funds
- 118 -
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes 12,544$ 13,208$ 14,353$ 15,974$ 17,453$ 18,964$ 20,178$ 26,392$ 32,450$ 36,556$
Franchise fees 2,712 2,619 2,817 3,142 3,202 3,360 3,813 4,536 4,330 5,084
Intergovernmental 8,790 9,054 10,559 10,860 12,342 12,245 26,786 17,848 15,724 17,405
Licenses and permits 1,298 1,594 2,249 1,927 1,691 2,259 2,791 2,379 1,051 3,221
Charges for services 1,652 1,746 2,103 2,188 2,483 2,825 3,213 3,554 5,821 3,844
Fines and forfeitures 703 358 204 230 241 176 186 153 169 199
Impact fees/special assessments 1,702 2,341 1,738 1,959 2,530 2,457 3,269 3,994 4,446 4,702
Investment Earnings 131 192 446 1,065 615 69 (138) 1,171 3,242 2,927
Contributions and other income 1,007 1,122 971 965 978 1,370 1,051 1,341 2,153 2,092
Total revenues 30,539 32,234 35,440 38,310 41,535 43,725 61,149 61,368 69,386 76,030
Expenditures
Current:
General government 4,070 3,911 3,948 4,609 4,892 5,750 5,060 5,962 6,944 7,117
Public safety 17,520 18,488 19,750 21,618 21,452 24,291 26,626 28,861 29,925 33,907
Physical environment 777 869 881 982 2,550 2,748 2,832 3,316 3,283 3,584
Transportation 1,878 1,687 1,927 2,165 1,546 2,072 1,957 2,179 2,381 3,612
Economic environment 482 324 343 372 786 608 618 688 117 148
Culture and recreation 5,038 5,996 5,199 6,302 2,901 3,027 3,838 4,972 3,914 3,800
Capital outlay 8,514 2,112 4,085 3,846 4,070 4,517 8,400 7,444 9,401 6,153
Debt service:
Principal 6,280 1,077 979 2,096 2,147 2,202 2,255 2,310 2,639 3,307
Interest 342 272 805 829 772 711 655 608 775 1,582
Total expenditures 44,901 34,736 37,917 42,819 41,116 45,926 52,241 56,340 59,379 63,210
Excess (deficiency) of revenues
over expenditures (14,362) (2,502) (2,477) (4,509) 419 (2,201) 8,908 5,028 10,007 12,820
Other financing sources (uses)
Transfers in 11,897 26,725 7,697 4,937 5,152 5,179 23,636 7,614 5,080 9,589
Transfers out (11,329) (25,957) (6,332) (2,834) (2,974) (2,833) (22,785) (8,208) (18,998) (19,494)
Refunding and new bonds issued 10,631 23,670 - - - - - - - -
Proceeds from financed purchases - - - 919 - - - .1,770 945
Sale of capital assets 1,321 86 1,000 198 29 44 214 94 109 118
Proceeds from issuance of debt - - - - - - - - 28,782 -
Total other financing sources (uses)12,520 24,524 2,365 3,220 2,207 2,390 1,065 (500) 16,743 (8,842)
Net change in fund balances (1,842)$ 22,022$ (112)$ (1,289)$ 2,626$ 189$ 9,973$ 4,528$ 26,750$ 3,978$
Debt service as a percentage of noncapital
expenditures 18.2%4.1%5.3%7.5%7.9%7.0%6.6%6.0%6.8%8.6%
*
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
Schedule A4
*Note: Increase in % due to refunding of 2013 bonds. Without the refunding the % would be 4.9% in 2016
City of Clermont, Florida
Tax Revenues by Source Governmental Funds
- 119 -
Last Ten Fiscal Years
Fiscal Property Utility Business Franchise
Year Tax Tax Tax Fees Total
2016 8,795$ 3,406$ 140$ 2,712$ 15,053$
2017 9,538 3,328 133 2,619 15,618
2018 10,549 3,446 160 2,817 16,972
2019 11,747 3,872 157 3,142 18,918
2020 12,880 4,202 162 3,203 20,447
2021 14,354 4,467 144 3,360 22,325
2022 15,350 4,684 145 3,813 23,992
2023 20,882 5,354 156 4,536 30,928
2024 24,869 5,533 2,049 4,330 36,781
2025 27,775 6,681 2,099 5,084 41,639
Fiscal Sales State Revenue Local Option
Year Tax Sharing Gas Tax Total
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
2024 3,344 1,968 598 5,910
2025 3,378 2,039 680 6,097
(amounts expressed in thousands)
Taxes Included in Unrestricted Intergovernmental Revenues
Schedule B1
(accrual basis of accounting)
City of Clermont, Florida
Assessed Value and Estimated Actual Value of Taxable Property
- 120 -
Total Estimated Assessed
Fiscal Less:Total Taxable Direct Actual Value as a
Year Ended Real Personal Tax Exempt Assessed Tax Taxable Percentage of
September 30 Property Property Property Value Rate Value Actual Value
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%
2024 5,649,897 333,706 1,090,731 4,892,872 5.0600 5,983,603 81.77%
2025 6,452,549 364,666 1,146,378 5,670,837 4.8800 6,817,215 83.18%
Source: Lake County Property Appraisers Office
(amounts expressed in thousands)
Schedule B2Last Ten Fiscal Years
City of Clermont, Florida
Direct and Overlapping Property Tax Rates
- 121 -
Last Ten Fiscal Years
Direct Rate
City of Lake South Lake St. Johns Total
Clermont 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
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
2024 5.0600 5.0364 0.0918 0.0463 6.2060 -0.2940 0.1793 16.9138
2025 4.8800 5.0364 0.0918 0.4629 6.1220 -0.2940 0.1793 17.0664
Source: Lake County Property Appraisers Office
1 Overlapping rates are those of local and county governments that apply to property owners within the City of Clermont.
2 Taxes levied for the fiscal year are based on the prior year taxable value.
Operating millage is the only component of the City's direct rate
3 South Lake Hospital Tax District dissolved, effective Fiscal Year 2021.
(per $1,000 of assessed value)
Schedule B3
Lake County
Overlapping Rates
City of Clermont, Florida
Principal Property Taxpayers
- 122 -
Fiscal Year Ended September 30, 2025
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Advenir@Castle Hill LLC 61,355 1 1.08%
BR Citrus Tower LLC 51,898 2 0.92%
PKY Clermont MF, LLC 48,904 3 0.86%
CC Clermont LLC 48,847 4 0.86%
US 27-Clermont LLC 44,000 5 0.78%
VR Clermont Limited Partnership 38,654 6 0.68%
Westdale Sundance LTD 38,522 7 0.68%19,456 6 0.91%
Vista at Lost Lake TIC I LLC ET AL 37,078 8 0.65%
Advenir@Clermont, LLC 33,104 9 0.58%
Plaza Collina Apartments Venture, LLC 32,404 10 0.57%
South Lake Hospital Inc 29,149 1 1.36%
Citrus Tower FL Phase I LLC 27,141 2 1.27%
John P Adams & Ann D Adams Family LP 26,815 3 1.25%
US 27-Clermont LLC 26,018 4 1.22%
Centennial Citrus Tower LLC 25,155 5 1.18%
Citrus Tower FL Phase II LLC 19,454 7 0.91%
Taylor Morrison of Florida Inc 17,979 8 0.84%
IP9 MF Clermont LLC 17,941 9 0.84%
Weingarten I-4 Clermont Landing LLC 14,123 10 0.66%
TOTAL 434,766$ 7.67%223,231$ 10.44%
Source: Lake County Property Appraiser
(amounts expressed in thousands)
2025 2016
Schedule B4
City of Clermont, Florida
Property Tax Levies and Collections
- 123 -
Last Ten Fiscal Years
Fiscal
Year Total Tax Collections in
Ended Levy for Percentage Subsequent Percentage
September Fiscal Year Amount of Levy Years Amount of Levy
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 21,306 20,201 94.8%2 20,203 94.8%
2024 24,763 23,411 94.5%14 23,425 94.6%
2025 27,797 25,831 92.9%406 26,237 94.4%
(amounts expressed in thousands)
Note: Property taxes become due and payable on November 1st 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.
Collected within the
Fiscal Year of the Levy Total Collections to Date
Schedule B5
City of Clermont, Florida
Ratios of Outstanding Debt by Type
- 124 -
Last Ten Fiscal Years Schedule C1
Fiscal Year Total Percentage
Ended Revenue Capital Notes Line of Revenue Notes Outstanding of Personal
Sept Bonds Leases Payable Credit Bonds Payable Debt Income1 Per Capita1
2016 -$ -$ 11,509$ -$ 13,075$ -$ 24,584$ 2.40%709.147027
2017 - - 34,102 - 12,403 6,329 52,834 4.87%1475.52155
2018 - - 33,123 - 12,268 6,329 51,720 4.22%1329.35794
2019 - 838 31,109 - 11,467 5,980 49,394 3.76%1212.1227
2020 - 754 29,045 - 10,634 5,621 46,054 3.45%1039.57021
2021 - 666 26,930 - 9,779 5,253 42,628 3.03%954
2022 - 577 24,766 - 8,900 4,875 39,118 2.30%852
2023 - 485 22,547 - 8,000 4,487 35,519 1.82%748
2024 28,152 2,018 20,775 - 7,080 4,089 62,114 1.41%1265
2025 27,652 2,609 18,322 - 6,137 3,680 58,400 1.32%1185
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 See the Schedule of Demographic and Economic Statistics on page 132 for personal income and population data.
(amounts expressed in thousands, except per capita amount)
Business-Type
Governmental Activities Activities
City of Clermont, Florida
Direct and Overlapping Governmental Activities by Debt
- 125 -
For year ended September 30, 2025 Schedule C2
Estimated Amount
Debt Percentage Applicable to
Government Unit:Outstanding Applicable (1)City of Clermont
Lake County 90,069$ 14.10%12,700$
Lake County School District 118,965 12.62%15,013
Subtotal, overlapping debt 27,713
City of Clermont, direct debt 60,932 100.00%60,932
Total direct and overlapping debt 88,645$
Sources: Lake County 2024 Annual Comprenhesive Financial Report, Lake County School
District 2024 Annual Comprenhesive Financial Report, and Lake County Property Appraiser's Office
(1) 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.
(amounts expressed in thousands, except population and per capita amount)
City of Clermont, Florida
Pledged – Revenue Coverage
- 126 -
Last Ten Fiscal Years Schedule C3
Public Communications Total Revenue
Fiscal Service Service Half-Cent Available for
Year Taxes Tax Sales Tax Debt Service Principal Interest Coverage
2016 3,405,642$ 1,138,032$ 1,848,294$ 6,391,968$ 585,609$ 12,760$ 10.68
2017 3,328,087 1,122,258 1,945,237 6,395,582 591,692 6,345 10.69
2018 3,446,407 1,112,440 2,172,025 6,730,872 286,141 1,559 23.40
2019 3,872,099 1,131,382 2,235,693 7,239,174 ******
2020 4,201,714 1,232,777 2,344,875 7,779,366 ******
2021 4,466,642 1,327,089 2,806,160 8,599,891 ******
2022 4,684,059 1,414,867 3,333,085 9,432,011 ******
2023 5,353,571 1,642,894 3,330,323 10,326,788 ******
2024 5,512,337 1,880,867 3,344,435 10,737,639 ******
2025 6,069,764 1,914,057 3,123,724 11,107,545 ******
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
Public Improvement Revenue Refunding Note, Series 2012
Debt Service
City of Clermont, Florida
Pledged – Revenue Coverage (Continued)
- 127 -
Public Communications Total Revenue
Fiscal Service Service Available for
Year Taxes Tax Debt Service Principal Interest Coverage
2016 3,405,642$ 1,138,032$ 4,543,674$ 5,694,228$ *195,148$ 0.77
2017 3,328,087 1,122,258 4,450,345 255,000 105,635 12.34
2018 3,446,407 1,112,440 4,558,847 377,841 99,212 9.56
2019 3,872,099 1,131,382 5,003,481 385,511 91,464 10.49
2020 4,201,714 1,232,777 5,434,491 393,337 83,558 11.40
2021 4,466,642 1,327,089 5,793,731 401,322 75,493 12.15
2022 4,684,059 1,414,867 6,098,926 409,469 67,263 12.79
2023 5,353,571 1,642,894 6,996,465 417,781 58,866 14.68
2024 5,512,337 1,880,867 7,393,204 426,262 50,299 15.51
2025 6,069,764 1,914,057 7,983,821 434,915 41,558 16.76
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.
Public Improvement Revenue Refunding Note, Series 2016
Debt Service
City of Clermont, Florida
Pledged – Revenue Coverage (Continued)
- 128 -
Infrastructure
Fiscal Sales
Year Surtax Principal Interest Coverage
2016 2,964,966$ -$ 27,466$ 107.95
2017 3,115,549 230,716 109,914 9.15
2018 3,397,707 314,809 104,132 8.11
2019 3,474,813 321,483 97,387 8.30
2020 3,603,194 328,298 90,499 8.60
2021 4,182,726 335,258 83,466 9.99
2022 5,337,140 342,365 76,283 12.75
2023 5,538,802 349,623 68,948 13.23
2024 5,957,226 357,035 61,457 14.23
2025 5,215,185 364,605 53,808 12.46
Infrastructure Sales Surtax Revenue Note, Series 2016
Debt Service
Note: Details regarding the city's outstanding debt can be found in the notes to the
financial statements.
City of Clermont, Florida
Pledged – Revenue Coverage (Continued)
- 129 -
Infrastructure Recreation Total Revenue
Fiscal Sales Impact Stormwater Sanitation Available for
Year Surtax Fees Fees Fees Debt Service Principal Interest Coverage
2016 -$ -$ -$ -$ -$ -$ -$ N/A
2017 3,115,549 1,495,242 1,002,859 3,087,701 8,701,352 - -N/A
2018 3,397,707 1,047,736 1,375,516 3,176,721 8,997,680 - 749,550 12.00
2019 3,474,813 1,157,840 1,596,720 3,263,253 9,492,626 1,657,000 767,210 3.92
2020 3,603,194 1,529,037 1,695,361 3,550,386 10,377,978 1,701,000 723,053 4.28
2021 4,182,726 1,661,798 1,782,926 3,784,598 11,412,048 1,746,000 677,725 4.71
2022 5,337,140 2,068,218 1,879,538 4,019,607 13,304,503 1,791,000 631,213 5.49
2023 5,538,802 2,299,151 1,948,759 4,267,856 14,054,568 1,839,000 583,479 5.80
2024 5,957,226 2,553,445 2,265,366 5,493,637 16,269,674 1,887,000 534,482 6.72
2025 5,215,185 2,590,911 2,353,519 6,208,606 16,368,221 1,937,000 484,196 6.76
Master Plan Capital Projects Revenue Note, Series 2017
Debt Service
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
City of Clermont, Florida
Pledged – Revenue Coverage (Continued)
- 130 -
Water and Water and
Sewer Sewer Net Revenue
Fiscal Operating Operating Available for
Year Revenues1 Expenses2 Debt Service Principal Interest Coverage
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
2024 25,296,348 15,661,878 9,634,470 920,000 179,452 8.76
2025 27,859,852 17,036,550 10,823,302 1,443,000 4 1,145,832 4.18
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 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.
payoff of the original bonds.
Water and Sewer Revenue and Refunding Bonds
Debt Service
4 Wastwater Treatment Plant Expansion Project 2024 Debt Issuance.
3 Water and Sewer Revenue Refunding Bonds, Series 2009 was partially refunded in 2017, this includes the
City of Clermont, Florida
Demographic and Economic Statistics
- 131 -
Last Ten Fiscal Years Schedule D1
Education
Level in
Median Per Capita Years of
Fiscal Household Personal Median Formal School Unemploy-
Year Population1 Income1 Income1 Age1 Schooling1 Enrollment2 ment Rate1
2016 34,667 60,498 29,537 42.1 13.4 8,278 4.4%
2017 35,807 61,736 30,329 41.6 13.3 8,533 3.1%
2018 38,906 64,685 31,536 42.3 13.4 8,563 2.7%
2019 40,750 59,994 32,211 42.5 13.9 8,567 2.8%
2020 44,301 63,723 30,135 42.1 14.0 8,543 6.7%
2021 44,687 68,756 31,442 42.2 14.0 8,423 3.7%
2022 45,812 76,111 37,099 42.4 14.1 7,386 2.6%
2023 47,456 88,425 41,082 42.7 14.3 8,896 3.4%
2024 49,092 89,043 43,926 45.7 14.3 9,246 2.8%
2025 49,266 88,109 44,239 45.8 14.3 9,636 2.8%
Sources:1 Metro Orlando Economic Development Commission
2 Lake County School Board ACFR
City of Clermont, Florida
Principal Employers
- 132 -
Businesses
by SIC Codes Number Percent Number Percent Number Percent Number Percent
Services 1,142 48.0%1,132 46.4%985 43.8%1,017 43.6%
Retail Trade Businesses 485 20.4%469 19.2%441 19.6%468 20.1%
Finance, Insurance, Real Estate 273 11.5%276 11.3%273 12.1%266 11.4%
Construction 130 5.5%125 5.1%116 5.2%125 5.4%
Government 28 1.2%25 1.0%28 1.2%33 1.4%
Manufacturing 29 1.2%30 1.2%26 1.2%28 1.2%
Transportation 52 2.2%51 2.1%45 2.0%44 1.9%
Agriculture & Mining 30 1.3%28 1.1%23 1.0%27 1.2%
Wholesale Trade 32 1.3%34 1.4%27 1.2%31 1.3%
Communication 11 0.5%12 0.5%9 0.4%9 0.4%
Utility 5 0.2%4 0.2%3 0.1%3 0.1%
Unclassified Establishments 160 6.7%254 10.4%272 12.1%279 12.0%
2,377 100.0%2,440 100.0%2,248 100.0%2,330 100.0%
Employees
by SIC Codes Number Percent Number Percent Number Percent Number Percent
Services 20,004 65.1%9,576 46.1%8,559 44.2%8,557 45.0%
Retail Trade Businesses 6,508 21.2%7,001 33.7%6,610 34.1%6,381 33.6%
Finance, Insurance, Real Estate 1,627 5.3%1,661 8.0%1,676 8.6%1,490 7.8%
Construction 849 2.8%753 3.6%865 4.5%928 4.9%
Government 497 1.6%612 2.9%569 2.9%641 3.4%
Manufacturing 460 1.5%414 2.0%397 2.0%392 2.1%
Transportation 344 1.1%248 1.2%224 1.2%219 1.2%
Agriculture & Mining 146 0.5%142 0.7%116 0.6%128 0.7%
Wholesale Trade 103 0.3%122 0.6%89 0.5%102 0.5%
Communication 51 0.2%63 0.3%44 0.2%46 0.2%
Utility 99 0.3%85 0.4%83 0.4%83 0.4%
Unclassified Establishments 18 0.1%96 0.5%146 0.8%42 0.2%
30,706 100.0%20,773 100.0%19,378 100.0%19,009 100.0%
Source: Orlando Economic Partnership (OEM)
Note: Change in reporting methodology and source beginning in 2022.
2024
Businesses
Employees
2025
Businesses
Employees
Schedule D2
Employees
2022
Businesses
Employees
2023
Businesses
City of Clermont, Florida
Principal Water Customers
- 133 -
Usage Percentage of Usage Percentage of
(thousands Total City (thousands Total City
Employer of gallons)Rank Metered Flow1 of gallons)Rank Metered Flow
KINGS RIDGE SOUTH 135,507 1 3.34%
SLMH 43,368 2 1.07%38,258 2 1.49%
KINGS RIDGE NORTH 31,135 3 0.77%
WINDY HILL MIDDLE SCHOOL 15,724 4 0.39%
VISTA AT LOST LAKE TIC I LLC 14,797 5 0.37%
ADVENIR @ CLERMONT, LLC 11,535 6 0.28%
VR CLERMONT LIMITED PARTNERSHIP 10,579 7 0.26%
VISTA AT LOST LAKE TIC I LLC 8,859 8 0.22%
SLMH 8,788 9 0.22%
EMERALD LAKES OF CLERMONT 8,290 10 0.20%
Kings Ridge 175,549 1 6.82%
Lake County School System 35,358 3 1.37%
Taylor Morrison of Florida 29,958 4 1.16%
Living Well Lodges Clermont 26,575 5 1.03%
City of Clermont 21,499 6 0.84%
Citrus Tower FL Phase I&II LLC 20,468 7 0.80%
Lennar Homes 20,236 8 0.79%
Westminster Comm Care Svcs 17,661 9 0.69%
Meritage Homes 14,467 10 0.56%
TOTAL 288,582 7.12%400,029 15.55%
1 The City of Clermont had a total metered water flow of approximately 4,051,367,000 gallons for the
12-month period ending September 30, 2025.
Schedule D3
2025 2016
City of Clermont, Florida
Principal Sewer Customers
- 134 -
Usage Percentage of Usage Percentage of
(thousands Total City (thousands Total City
Employer of gallons)Rank Metered Flow1 of gallons)Rank Metered Flow
Town of Oakland 47,835 1 3.38%
Southlake Medical Hospital 43,368 2 3.06%34,778 1 2.32%
Windy Hill Middle School 15,724 3 1.11%
Vista at Lost Lake TIC I LLC 14,797 4 1.04%
Advenir @ Clermont, LLC 11,535 5 0.81%
VR Clermont Limited Partnership 10,579 6 0.75%
Vista at Lost Lake TIC I LLC 8,859 7 0.63%
Emerald Lakes of Clermont 8,290 8 0.59%
Town of Montverde 8,199 9 0.58%
Carwash Headquarters, Inc 7,240 10 0.51%
Lake County Schools 27,578 2 1.84%
Living Well Lodges Clermont LLC 26,575 3 1.77%
Citrus Tower FL Phase 1&II LLC 20,468 4 1.37%
Westminster Comm Care Service 17,105 5 1.14%
Centennial Citrus Tower LLC 13,957 6 0.93%
Sundance Apartments 12,913 7 0.86%
Village at East Lake 11,075 8 0.74%
Osprey Ridge Apartments 10,947 9 0.73%
Oak Ridge Apartments 7439 9,266 10 0.62%
TOTAL 176,426 12.45%184,662 12.33%
1 The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,416,654,000
gallons for the 12-month period ending September 30, 2025.
Schedule D4
2025 2016
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
- 135 -
Last Ten Fiscal Years Schedule E1
Full-time Equivalent Employees as of September 30
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government 36.00 38.70 41.45 49.50 48.90 49.90 54.06 53.00 51.50 46.00
Public Safety:
Police
Sworn personnel 66.00 70.00 79.00 81.00 86.00 88.00 92.00 95.00 86.50 93.00
Non sworn personnel 6.00 6.00 7.00 7.00 7.00 8.00 9.00 10.00 10.00 11.00
Fire
Firefighters 59.80 66.50 74.20 81.00 81.00 81.00 82.00 80.00 86.00 99.00
Other personnel 4.20 6.50 8.80 8.00 8.00 8.00 7.00 5.00 6.00 10.00
Building Services 7.00 11.30 11.55 12.30 13.55 14.55 13.78 13.50 14.00 28.00
Physical Environment 8.70 10.70 10.70 10.70 9.65 9.65 9.65 10.00 13.00 21.00
Transportation 12.60 14.60 16.60 11.90 11.73 11.73 11.73 14.00 17.00 16.00
Culture & Recreation 35.35 39.35 40.60 37.50 39.22 39.22 39.22 33.00 34.00 31.00
Water 29.65 29.15 30.45 30.55 32.70 36.70 35.63 36.00 38.00 38.00
Sewer 26.45 26.95 31.25 31.40 32.50 34.50 35.13 48.00 49.00 39.00
Stormwater 7.75 10.25 10.10 13.85 13.95 13.95 14.98 16.00 17.00 11.00
Sanitation 18.5 21.00 21.30 21.30 20.80 20.80 20.82 25.00 21.00 21.00
Totals 318 351 383 396 405 415.995 425 438.5 443 464
Source: City of Clermont Finance Department.
City of Clermont, Florida
Operating Indicators by Function/Program
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Schedule E2
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government
Municipal boundary (square miles)17 17 17 19 19 19 19 20 20 20
Business Tax Receipts issued 1,639 1,633 1,623 1,585 1,572 1,968 1,752 1,375 1,867 -
A/P Checks issued 3,276 3,651 3,872 3,859 3,543 3,846 3,905 4,452 5,018 4,819
Commercial construction (units)20 14 20 15 10 16 26 32 33 18
- value in thousands 42,241 13,302 42,042 30,862 13,695 52,737 61,307 65,156 73,336 49,428
Residential construction (units)740 433 387 377 428 591 673 420 530 590
- value in thousands 103,423 87,873 104,394 87,927 92,541 110,912 134,829 69,691 80,055 154,886
Multi Family construction (units)------301 210 283 17
- value in thousands ------31,945 30,047 48,388 79,064
Public Safety:
Police
Auto accidents 1,909 1,909 1,802 2,082 1,780 1,673 2,209 2,093 2,181 2,325
Physical arrests 589 593 569 663 632 590 548 816 828 788
911 calls received 6,397 6,809 7,943 9,185 8,703 9,880 9,124 10,969 9,488 10,062
Evidence processed (pieces)674 1,165 1,040 1,821 1,331 1,787 2,107 2,250 1,891 1,828
Parking violations 181 385 147 101 319 403 522 696 871 305
Traffic violations 7,421 6,713 4,676 4,790 4,340 3,394 3,576 3,448 3,725 5,761
Fire
Volunteer firefighters - - - - - - - - - -
Fire inspections completed 4,468 2,586 2,203 2,493 2,445 3,112 2,154 3,338 3,308 5,715
Emergency calls answered 6,001 6,828 5,689 5,367 6,199 6,549 6,977 7,633 8,144 8,547
Non-emergency calls answered 806 925 989 1,493 814 1,593 1,847 1,222 954 -
Water
Residential accounts *13,561 14,339 14,805 15,311 15,882 16,283 16,919 17,474 18,126 18,767
Commercial accounts 1,220 1,235 1,498 1,283 1,283 1,344 1,353 1,379 1,432 1,471
Annual water usage
(thousands of gallons)2,572,852 2,743,657 2,687,665 2,816,071 3,090,626 3,568,993 3,789,411 4,210,416 4,528,006 4,432,707
Sewer
Residential accounts 13,860 14,619 15,198 15,669 16,330 17,670 19,160 19,721 18,726 19,373
Commercial accounts 1,091 1,106 1,107 1,126 1,135 1,342 1,425 1,455 1,511 1,555
Sources: Various government departments.
Last Ten Fiscal Years
Fiscal Year
City of Clermont, Florida
Capital Assets by Function/Program
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Last Ten Fiscal Years
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government
Public Safety:
Police
Police stations 1 1 1 1 1 1 1 1 1 1
Patrol units 95 98 104 106 107 106 116 116 128 147
Fire
Fire department facilities 4 5 5 5 5 5 5 5 5 5
Staffed fire stations 4 4 4 4 4 4 4 4 4 4
Fire hydrants 2646 2646 2646 2456 2456 2456 2475 2503 2503 2419
Fire apparatus 6 7 9 9 9 9 9 9 10 13
Staffed fire apparatus 6 6 7 7 7 7 7 7 7 7
ALS non-transport units 1 6 6 7 7 9 9 9 9 6
Transportation
Streets Paved (miles)1 210 210.6 210.6 210.6 210.6 210.6 202 202 106 108
Streetlights 3160 1309 1309 1309 1309 1309 1309 1309 1309 1309
Culture & Recreation
Number of parks 23 24 24 24 24 24 24 24 24 24
Parks acreage 443.92 443.92 443.9 443.9 443.9 443.9 443.9 443.9 443.9 443.9
Scenic linear trail (miles)7.48 7.5 7.99 7.99 7.99 7.99 8 8 8 8
Tennis courts 9 9 9 9 9 9 9 9 9 9
Pickleball courts ------6 6 6 12
Piers 11 11 9 9 9 9 9 9 9 5
Boat ramp 1 1 1 1 1 1 1 1 1 1
Water
Miles of water mains 229.44 297 297.81 331.86 334.98 354.16 334.98 366.71 372 380.16
Sewer
Miles of sanitary sewers 168.57 220 224 236.34 238.5767 254.61 238.58 250.85 194.2 271.9
Miles of Storm Sewers2 47.63 47.56 48.36 50.38 50.38 51.46 50.38 53.57 54.29 55.79
* Data not available.
** Asset was not in service.
Changed from Lane miles to center line miles method in FYE 2024.
Does not include private systems.
Reuse
Water Mains (miles)
Storage Capacity (gallons)
Wastewater
Sewers-Force Mains/Gravity (miles)
Permited Treatment Capacity (gallons/day)
Lift Stations
Schedule E3
Fiscal Year
City of Clermont, Florida
Impact Fees Collected
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Last Ten Fiscal Years
Recreation Police Fire Water Sewer Total
Fiscal Impact Impact Impact Impact Impact Impact
Year Fees Fees Fees Fees Fees Fees
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 1,513,680 3,847,070 9,354,377
2024 2,553,445 665,576 1,226,903 1,452,106 4,558,485 10,456,515
2025 2,590,911 660,566 1,450,754 1,593,772 2,713,714 9,009,717
Schedule E4
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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 Members of the City Council
City of Clermont, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information of the City of Clermont, Florida (the City), as of and for the year ended
September 30, 2025, and the related notes to the financial statements, which collectively comprise
the City’s basic financial statements and have issued our report thereon dated March 31, 2026.
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 or significant deficiencies may exist that were not identified.
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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 financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
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.
CARR, RIGGS & INGRAM, L.L.C.
Orlando, Florida
March 31, 2026
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR THE MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and Members of the City Council
City of Clermont, Florida
Report on Compliance for the Major Federal Program
Opinion on the Major Federal Program
We have audited City of Clermont, Florida’s compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on the City of Clermont, Florida’s major federal program for the year ended September 30, 2025.
City of Clermont, Florida’s major federal program is identified in the summary of auditor’s results section
of the accompanying schedule of findings and questioned costs.
In our opinion, City of Clermont, Florida complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on its major federal program
for the year ended September 30, 2025.
Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of City of Clermont, Florida 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 the major federal program. Our audit does not provide a legal determination of City of
Clermont, Florida’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to City of
Clermont, Florida’s federal programs.
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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 City of Clermont, Florida’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 generally accepted auditing standards, Government Auditing Standards, and the Uniform
Guidance will always detect material noncompliance when it exists. The risk of not detecting material
noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about City of Clermont, Florida’s compliance with the
requirements of the major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on
a test basis, evidence regarding City of Clermont, Florida’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 City of Clermont, Florida’s internal control over compliance relevant
to the audit in order to design audit procedures that are appropriate in the circumstances and to
test and report on internal control over compliance in accordance with the Uniform Guidance,
but not for the purpose of expressing an opinion on the effectiveness of City of Clermont, Florida’s
internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with
a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
- 143 -
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
CARR, RIGGS, INGRAM, L.L.C.
Orlando, Florida
March 31, 2026
City of Clermont, Florida
Schedule of Expenditures of Federal Awards
September 30, 2025
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Federal or State Grantor/Identifying Grant/Loan Assistance Listing
Pass-Through Grantor/Program Number Number Expenditures Subrecipients
U.S. Department of Justice
Bulletproof Vest Partnership Program 16.607 36,918$ -$
Equitable Sharing Program FL0350300 16.922 8,445 -
Passed through FL Office of the Attorney General
Crime Victim Assistance VOCA-2021-Clermont Police 16.575 24,030 -
Passed through Florida Dept. of Law Enforcement (FDLE)
Edward Byrne Memorial Justice Assistance Grant Program 15PBJA-23-GG-02972-MUMU 16.738 13,398 -
Total U.S. Department of Justice 82,791 -
U.S. Department of Treasury
COVID 19-Coronavirus State and Local Fiscal Recovery Fund CFDA 21.027 21.027 3,092,329 -
U.S. Department of Transportation
Passed through Florida Department of Transportation
Highway Safety Cluster
State and Community Highway Safety G3837 20.600 49,341 -
Department of Homeland Security
Passed through Florida Dept. of Emergency Management
Hazard Mitigation Grant H0917; 4486-0430-R 97.039 253,885 -
Disaster Grants - Public Assistance DR4673-FL-Z3386 97.036 178,091 -
Disaster Grants - Public Assistance DR4680-FL-Z3649 97.036 21,818 -
Disaster Grants - Public Assistance DR4734-FL-Z4004 97.036 45,555 -
Disaster Grants - Public Assistance DR4834-FL-Z4720 97.036 164,588 -
97.036 Total 410,052 -
Total Passed through Florida Dept. of Emergency Management 663,937 -
Total Department of Homeland Security 663,937 -
Total of Federal Awards 3,888,398$ -$
City of Clermont, Florida
Notes to the Schedule of Expenditures of Federal Awards
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A. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal
award activity of the City of Clermont, Florida, under programs of the federal government for the
year ended September 30, 2025. 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. Because the Schedule presents only a selected portion of the
operations of the City of Clermont, Florida, it is not intended to and does not present the financial
position, changes in net assets, or cash flows of the City of Clermont, Florida.
B. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable, either the cost principles contained in the
Uniform Guidance, wherein certain types of expenditures are not allowable, or are limited as to
reimbursement.
C. Sub-recipients
The City of Clermont, Florida had no sub-recipients of federal awards in the fiscal year ended
September 30, 2025.
D. Indirect Cost Rate
The City of Clermont, Florida has elected not to use the 15‐percent de minimis indirect cost rate
allowed under the Uniform Guidance.
E. Noncash Awards
The City of Clermont, Florida received no non‐cash awards in the fiscal year ended
September 30, 2025.
City of Clermont, Florida
Schedule of Findings and Questioned Costs
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PART I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor’s report issued: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified? ___ yes X no
• Significant deficiency(ies) identified? _ yes X none noted
Noncompliance material to financial statements noted? ___ yes X no
Federal Awards
Internal control over major federal program:
• Material weakness(es) identified? ___ yes X no
• Significant deficiency(ies) identified? ___ yes X none noted
Type of auditor’s report issued on compliance for major
federal program: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR Part 200.516(a) of OMB
Compliance Supplement? ___ yes X none noted
Identification of major federal program:
Federal ALN Federal Program or Cluster
21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Dollar threshold used to distinguish between type A and B programs was $1,000,000 for major
federal program.
Auditee qualified as a low-risk auditee for federal purposes? _ yes X_ no
City of Clermont, Florida
Schedule of Findings and Questioned Costs (Continued)
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PART II – FINANCIAL STATEMENT FINDINGS
None noted.
PART III – FEDERAL AWARD FINDINGS
None noted.
PART IV – PRIOR AUDIT FINDINGS
2024-01 Internal Control on Financial Reporting (Significant Deficiency): The unbilled revenue for
utilities was not properly reflected as revenue in the proper period. GASB 87 for leases was not
properly implemented and reflected as a receivable and deferred inflow. Reconciliation of accounts
were not completed at year end, to include pension investment activity.
Status: Corrective action has been taken and this matter has been fully resolved.
- 148 -
MANAGEMENT LETTER REQUIRED BY
CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
Honorable Mayor and Members of the City Council
City of Clermont, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Clermont, Florida (the City) as of and for
the fiscal year ended September 30, 2025, and have issued our report thereon dated June 30, 2025.
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; and Chapter 10.550, Rules of the
Auditor General.
Other Reporting Requirements
We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting
and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government Auditing Standards, and Independent Accountants’ 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 September 30, 2025, should be
considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires 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.
- 149 -
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.
The legal authority of the City of Clermont, Florida and its component unit are disclosed in the
footnotes.
Financial Condition and Management
Section 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 has met
one of more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the
specific conditions met. In connection with our audit, we determined that the City 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. It is management’s responsibility to monitor the City’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.
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.
Property Assessed Clean Energy (PACE) Programs
As required by Section 10.554(1)(i)6.a., Rules of the Auditor General, the City of Clermont did not
operate a PACE program pursuant to Section 163.081 or Section 163.082, Florida Statutes, within the
City's geographical boundaries during the fiscal year under audit.
Specific Information (unaudited)
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7-9, Rules of the Auditor
General, the City of Clermont, Florida Community Redevelopment Agency reported the information
below. This information has not been subjected to the auditing procedures applied in the audit of the
financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor
General, the City of Clermont, Florida Community Redevelopment Agency reported:
a. The total number of Agency employees compensated in the last pay period of
the Agency’s fiscal year as: None
b. The total number of independent contractors to whom nonemployee
compensation was paid in the last month of the Agency's fiscal year as: None
c. All compensation earned by or awarded to employees, whether paid or
accrued, regardless of contingency: $15,538
- 150 -
d. All compensation earned by or awarded to nonemployee independent
contractors, whether paid or accrued, regardless of contingency:
$51,898
e. Each construction project with a total cost of at least $65,000 approved by the
Agency that is scheduled to begin on or after October 1 of the following fiscal
year being reported, together with the total expenditures for such projects as: None, $0
f. A budget variance based on the budget adopted under Section 189.016(4),
Florida Statutes, before the beginning of the fiscal year being reported if the
Agency amends a final adopted budget under Section 189.016(6), Florida
Statutes: See Page 108
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor
General, the City of Clermont, Florida Community Redevelopment Agency reported:
a. The millage rate or rates imposed by the Agency: 4.8800
b. The total amount of ad valorem taxes collected by or on behalf of the Agency: $877,387
c. The total amount of outstanding bonds issued by the Agency and the terms of
such bonds: None
Information required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)9, Rules of the
Auditor General: The City of Clermont, Florida Community Redevelopment Agency has not imposed
any special assessments and therefore no reporting is required by Section 218.39(3), Florida Statutes.
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 did not note any such
findings.
- 151 -
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, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
CARR, RIGGS & INGRAM, L.L.C.
Orlando, Florida
March 31, 2026
THIS PAGE INTENTIONALLY LEFT BLANK
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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH LOCAL
GOVERNMENT INVESTMENT POLICIES
The Honorable Mayor and Council
City of Clermont, Florida
We have examined the City of Clermont, Florida (the City) compliance with the requirements of
Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended
September 30, 2025. Management of the City is responsible for the City’s compliance with the
specified requirements. Our responsibility is to express an opinion on the City’s compliance with the
specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the AICPA.
Those standards require that we plan and perform the examination to obtain reasonable assurance
about whether the City complied, in all material respects, with the specified requirements referenced
above. An examination involves performing procedures to obtain evidence about whether the City
complied with the specified requirements. The nature, timing, and extent of the procedures selected
depend on our judgment, including an assessment of the risks of material noncompliance, whether
due to fraud or error. We believe that the evidence obtained is sufficient and appropriate to provide
a reasonable basis for our opinion.
We are required to be independent and to meet our ethical responsibilities in accordance with
relevant ethical requirements relating to the examination engagement.
Our examination does not provide a legal determination on the City’s compliance with specified
requirements.
In our opinion, the City complied, in all material respects, with the requirements of Section 218.415,
Florida Statutes, Local Government Investment Policies, for the year ended September 30, 2025.
- 153 -
This report is intended solely for the information and use of the City’s Board, management and the
State of Florida Auditor General and is not intended to be and should not be used by anyone other
than these specified parties.
Orlando, Florida
March 31, 2026