Comprehensive Annual Financial Report - 2007-2008CITY OF CLERMONT
FLORIDA
Chi Al Comprehensive Annual
Financial Report
Fiscal Year Ended September 30, 2008Fiscal Year Ended September 30, 2008
The Fire Station 1 Administration Building Addition, which was
completed in September 2008, provided 5,856 square feet of offices,
conference rooms, training rooms and storage to accommodate the
expanding Fire Department. Also included in the addition is a 30 by
30 foot training room equipped with computer terminals and main
viewing screens. The training room will double as an Emergency
Operations Center for all City departments during crisis events.
City of Clermont, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2008
Prepared by: Administrative Services Department
i
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2008
Page
I. Introductory Section:
Table of Contents i
Letter of Transmittal iii
GFOA Certificate of Achievement ix
List of Principal Officials x
Organizational Chart xi
II. Financial Section:
Independent Auditor’s Report 1
Management’s Discussion and Analysis 3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets 15
Statement of Activities 16
Fund Financial Statements:
Balance Sheet - Governmental Funds 17
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds 18
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of
Activities
19
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - General Fund
20
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual – Infrastructure Special Revenue Fund
22
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual – Community Redevelopment
Special Revenue Fund
23
Statement of Net Assets - Proprietary Funds 24
Statement of Revenues, Expenses and Changes in
Fund Net Assets - Proprietary Funds
27
Statement of Cash Flows – Proprietary Funds 28
Statement of Fiduciary Net Assets - Fiduciary Funds 30
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 31
Notes to Financial Statements 33
Required Supplementary Information 59
Other Governmental Funds:
Combining Balance Sheet – Other Governmental Funds 62
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Other Governmental Funds 64
Schedule of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual:
Special Revenue Funds 66
Debt Service Fund 70
Capital Project Fund 71
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CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2008
Page
II. Financial Section - Continued:
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets 73
Combining Statement of Changes in Fiduciary Net Assets 74
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Function and Activity 75
III. Statistical Section:
Net Assets by Component 78
Changes in Net Assets 80
Fund Balances of Governmental Funds 82
Changes in Fund Balances of Governmental Funds 84
Governmental Activities Tax Revenues by Source 86
Assessed Value and Estimated Actual Value of Taxable Property 87
Property Tax Rates – Direct and Overlapping Governments 88
Principal Property Taxpayers 89
Property Tax Levies and Collections 90
Ratios of Outstanding Debt by Type 91
Direct and Overlapping Governmental Activities Debt 92
Pledged-Revenue Coverage 93
Demographic and Economic Statistics 96
Principal Employers 97
Principal Water Customers 98
Principal Sewer Customers 99
Full-time Equivalent City Government Employees by Function 100
Operating Indicators by Function 102
Capital Asset Statistics by Function 104
IV. Other Reports:
Report on Compliance and on Internal Control over Financial
Reporting Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards 107
Affidavit of Impact Fee Compliance 109
Report on Compliance with Requirements Applicable to Each Major
Federal Program and State Project and Internal Control Over
Compliance in Accordance with OMB Circular A-133 110
Schedule of Expenditures of Federal Awards and State Financial Assistance 112
Notes to Schedule of Expenditures of Federal Awards and State Financial
Assistance 113
Schedule of Findings and Questioned Costs – Federal Programs
And State Projects 114
CITY OF CLERMONT
P.O. BOX 120219 · CLERMONT, FLORIDA 34712-0219 · PHONE: 352-241-7360 · FAX: 352-394-4082
www.CityofClermontFL.com
March 31, 2009
To the Honorable Mayor and City Council and Citizens of the City of Clermont, Florida:
We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the
City of Clermont, Florida, for the fiscal year ended September 30, 2008. State law
requires that every general-purpose local government publish within six months of the
close of each fiscal year a complete set of audited financial statements. This report is
published to fulfill that requirement for the fiscal year ended September 30, 2008.
Management assumes full responsibility for the completeness and reliability of the
information presented in this report. To provide a reasonable basis for making these
representations, management of the City of Clermont has established a comprehensive
internal control framework that is designed both to protect the government’s assets from
loss, theft, or misuse and to compile sufficient reliable information for the preparation of
the City of Clermont’s financial statements in conformity with accounting principles
generally accepted in the United States of America (GAAP). Because the cost of
internal controls should not outweigh their benefits, the City of Clermont’s
comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief,
this financial report is complete and reliable in all material respects.
The City of Clermont’s financial statements have been audited by McDirmit Davis &
Company, LLC, a firm of licensed certified public accountants. The goal of the
independent audit was to provide reasonable assurance that the financial statements of
the City of Clermont for the fiscal year ended September 30, 2008, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified opinion that the City of Clermont’s financial statements for the fiscal year
ended September 30, 2008, are fairly presented in conformity with accounting principles
generally accepted in the United States of America. The independent auditor’s report is
presented as the first component of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent
auditor’s report and provides narrative introduction, overview, and analysis of the basic
financial statements. The MD&A provides “financial highlights” and interprets the
financial reports by analyzing trends and by explaining changes, fluctuations and
variances in the financial data. In addition, the MD&A is intended to disclose any known
significant events or decisions that affect the financial condition of the City. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with
it.
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Profile of the City of Clermont
The City was founded in 1884 and incorporated in 1916. The City currently has a land
area of 14.42 square miles and population of approximately 23,476. The City is located
in south Lake County, approximately twenty-two miles west of the City of Orlando and
about twenty-five miles northwest of Walt Disney World. Clermont, known as “The Gem
of the Hills”, is truly the crossroads of Florida, at the intersection of State Road 50 that
runs east and west across the state and U.S. Highway 27, which runs north and south
through the center of the state. Clermont is on a chain of 15 lakes connected by the
winding Palatlakaha River in the Ocklawaha Basin of tributaries of the St. Johns River,
the only river system in the United States of America that flows north. The lakes offer
residents the opportunity for excellent fishing, boating, swimming and other water sports
including competitive skiing and wakeboarding offered by world-class instructional
schools.
The City of Clermont is known for its scenic beauty, relaxed lifestyle, recreational
facilities and temperate climate. Residents have a wide variety of housing and property
ownership opportunities, including lakefront and lake access property, golf course
communities, homes in existing neighborhoods, residential retirement communities and
new subdivisions. The City of Clermont Parks and Recreation Department operates 22
parks, 5.7 miles of scenic paved trails, 4 piers measuring a total of 840 feet, 1-612 foot
boardwalk, 4 special purpose buildings and a boat ramp.
The City of Clermont provides a full range of services as directed by its charter. These
include police and fire protection; streets and sidewalk maintenance, planning and
development, code enforcement, mosquito control, recreational facilities and programs,
cemetery and general administrative functions. The City also provides potable water,
wastewater collection and treatment, reclaimed water production and distribution,
stormwater treatment, solid waste collection and recycling services.
The City operates according to a Council/Manager form of government, with an
appointed City Manager, four elected City Council members and an elected Mayor. The
governing body has legislative responsibilities including setting policy, passing
ordinances, adopting the budget, appointing committees, and hiring the City’s Manager.
The City Manager is responsible for carrying out the policies and ordinances of the
governing body, for overseeing the day-to-day operations of the government, and for
hiring the directors of the various departments.
The annual budget serves as the foundation the City of Clermont’s financial planning
and control. All departments of the City of Clermont are required to submit requests for
appropriations to the City Manager. The City Manager then uses these requests as the
starting point for developing a proposed budget. The City Manager then presents this
proposed budget to the Council for review. The City Council is required to hold public
hearings on the proposed budget and to adopt a final budget by no later than September
30, the close of the City of Clermont’s fiscal year. The appropriated budget is prepared
by fund (e.g. general fund), and department (e.g. fire department). The City Manager
may make transfers of appropriations within departments; however, any revisions that
alter the total appropriations of a department must be approved by City Council. Original
and final amended budget-to-actual comparisons are provided in this report for each
individual governmental fund. The General Fund is presented on pages 20-21, the
Infrastructure Special Revenue Fund is presented on page 22 and the Community
v
Redevelopment Special Revenue fund is presented on page 23 as part of the basic
financial statements for the governmental funds. For other governmental funds, these
comparisons are presented in the other governmental funds subsection of this report,
which starts on page 62.
The information presented in the financial statements is perhaps best understood when
it is considered from the broader perspective of the specific environment within which the
City of Clermont operates.
Local economy. The City of Clermont is essentially residential in character and its
economy is centered in retail, real estate, personal services and healthcare. At
September 30, 2008, Lake County’s unemployment rate was 6.5%. This is an increase
of 1.8% over 2007 and is slightly lower than the state’s average of 6.9% and slightly
higher than the national average rate of 6.2%. Educational institutions in Clermont such
as Lake-Sumter Community College and the University of Central Florida assist in
supplying a skilled labor force. South Lake Hospital, one of the City’s largest employers,
is a significant economic presence that provides employment to 1,000 healthcare
professionals and staff. The hospital has also attracted many new medical offices to the
area.
The cost of living for the region is below the national average. There is no personal
income tax, either locally or state-wide. Sales tax, currently at 7%, is not charged on
food or medicine. One cent of the sales tax charged within the county is limited to $50
per transaction (1% of $5,000). As discussed in the MD&A, this additional penny sales
tax must be used for infrastructure including roads, buildings, land, land improvements
and certain equipment.
The national housing market decline affected Clermont during Fiscal Year 2008 in the
form of reduced building permits and impact fee collections. The total of these
collections decreased nearly 16% from Fiscal Year 2007. The decrease in these
collections is continuing in Fiscal Year 2009.
Major initiatives. The following items are capital projects that are currently planned for
the City:
• The planning/design phase for the construction of Fire Station No. 3 was
completed during Fiscal Year 2008. The new station to be located in the eastern
portion of the City will enable quicker response times to the growing population
base in the area. The new station is estimated to cost approximately $1.5 million
and will be funded from infrastructure sales taxes.
• Planning for the construction of a new community center located on Lake
Minneola near Waterfront Park is ongoing. Currently estimated to cost $9 million,
the planned facility will accommodate weddings, meetings, and various
community functions. This project is anticipated to be funded from infrastructure
sales taxes, recreation impact fees and General Fund reserves.
• Currently under construction, the East Water Reclamation Facility Expansion
project includes construction of processes to upgrade the treatment capacity
from two million gallons per day to four million gallons per day. Other
improvements in the project include the addition of reclaimed water storage and
vi
distribution piping to deliver reclaimed water to existing customers. The total
budget for the improvements is $19,900,000. The project is being funded from
sewer utility reserves and sewer impact fees.
• The Greater Hills Water Treatment Plant expansion project includes construction
of a one million gallon ground storage tank and a bank of high service pumps to
deliver potable water to the distribution system. Also included in the project is a
new potable well and associated piping. The total budget for the improvements
is $6,100,000. The project is anticipated to be funded from water utility reserves
and water impact fees.
• The City continued making installment payments on the purchase of 220 acres of
land known as the Inland Groves property. The land is undeveloped and will be
used for a passive park. Development is not scheduled to begin for several
years. The price of the property purchased in 2006 was $16.5 million. The note
provides payments to be made over the next four (4) years from infrastructure
sales taxes, recreation impact fees and grants.
Long-term financial planning. The City uses an extensive water and sewer master
plan to manage growth in the water and sewer utility systems. The plan outlines water
and sewer line size requirements for planned development with rough cost estimates.
The plan also has benchmarks for plant expansions and additional well requirements.
Slowed building permits for new home construction are being monitored closely since
impact fee revenue is directly impacted by the housing market. This slowed growth also
impacts the growth of ad valorem, utility tax and franchise fee revenues in future years.
The slowdown in revenue growth may change the need for future borrowing in order to
complete planned projects. However, through careful short and long range planning,
conservative budgeting and sound management practices, most projects noted in the
major initiatives section are anticipated to be accomplished without incurring any
additional debt.
The City also monitors state legislation regarding ad valorem taxes. Changes approved
during the 2007 and 2008 legislative sessions affected the Fiscal Year 2009 budget and
will continue to affect future years. There are also a number of other changes being
proposed during 2009 that could have far reaching implications on how government
operates and the revenue sources available to fund them. Due to these circumstances,
we are actively monitoring expansion projects and limiting additional personnel that will
require multi-year funding commitments. Clermont City Council and management are
committed to budgeting and managing all resources in the most cost-effective manner.
Relevant financial policies. The City regularly reviews revenues and expenditures
throughout the fiscal year. During the course of the year, if actual revenues are
expected to fall short of the budgeted amount, expenditures are reduced to ensure that a
shortage of funds or a significant use of fund balance does not occur.
The City administers a cash management and investment program that seeks to
maximize, in order of priority, the preservation of funds, liquidity and interest earnings
over its cash and investments. Cash resources of the individual funds are combined to
form a pool of cash and investments. The average cash and investment pool balance
during the year (not including pension funds) was $55,063,724 and the average
vii
investment earnings rate was 5.3%. Investment income includes the change in the fair
value of investments. During the year monies were invested in accordance with the
City’s investment policy. Pension fund assets were invested in accordance with the
City’s Investment Policy for Retirement Funds. The total pension fund assets at year
end were $11,595,781 and the average investment income was -12.9%.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Clermont for its comprehensive annual financial report for the fiscal year ended
September 30, 2007. This was the twentieth consecutive year that the City has received
this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program’s requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and
dedicated services of the staffs in the City Manager’s office, Planning Department and
Administrative Services Department. We would like to express our appreciation to all
members of these departments who assisted and contributed to the preparation of this
report. A special note of appreciation is due Regina Frazier and Rita Edwards in
Finance for their hard work and dedicated efforts in the preparation of this report. Credit
also must be given to the Mayor and the City Council for their support in maintaining the
highest standards of professionalism in the management of the City of Clermont’s
finances.
Respectfully submitted,
ix
x
CITY OF CLERMONT, FLORIDA
LIST OF ELECTED AND APPOINTED OFFICIALS
SEPTEMBER 30, 2008
ELECTED OFFICIALS
Mayor Harold Turville, Jr.
Mayor Pro-Tem Keith Mullins
Council Member Ray Goodgame
Council Member Jack Hogan
Council Member Steve Berlinsky
APPOINTED OFFICIALS
City Manager Wayne Saunders
Assistant City Manager Darren Gray
City Attorney Dan Mantzaris
Administrative Services Director Joseph Van Zile
Public Services Director Preston Davis
Chief of Police Stephen Graham
Fire Chief Carle Bishop
Utility Director/City Engineer Tamara Richardson
Planning Director James Hitt
City Clerk Tracy Ackroyd
City of Clermont, Florida
Organizational Chartg
Citizens
CityAttorney
ClermontCity
Council
Committees
CityManagerAssistantCity
Manager
City Clerk Planning Recreation Police Fire PublicServices Administrative
Services
Utilities/
Engineering
Records Management
Website Management
Permitting
Occupational Licenses
Zoning
Criminal Investigations
Traffic Enforcement
Road Patrol
Fire Suppression
Special Operations
Emergency Medical
Services
Transportation
Parks
Animal/Mosquito
Control
Services
Finance
Utility Billing
Human Resources
Engineering
Inspections
Mapping
Water System
Improvements
Code Enforcement
Building Services
Communications
Community Relations
Fire Inspection and
Prevention
Volunteer and Reserve
Program
Fleet Maintenance
Stormwater Drainage
Sanitation
Risk Management
Budgeting
Information
Technology
Wastewater System
Improvements
Stormwater
Management
Water Treatment and
Distribution
Facility Maintenance Sewer Collection and
Treatment
Reclaimed Water
Water Conservation
xi
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Clermont, Florida
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Clermont, Florida, as of and for the year ended September 30, 2008, which collectively
comprise the City’s basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Clermont, Florida, as of
September 30, 2008 and the respective changes in financial position and cash flows, where
applicable, thereof and the respective budgetary comparison for the general fund, infrastructure
special revenue fund and the community redevelopment fund for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
1
In accordance with Government Auditing Standards, we have also issued a report dated March
19, 2009 on our consideration of the City of Clermont, Florida's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts
and grants agreements and other matters. The purpose of that report is to describe the scope
of our testing of internal control over financial reporting and compliance and the result of that
testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit preformed in accordance with
Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
The Management’s Discussion and Analysis is not a required part of the basic financial
statements but is supplemental information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the supplemental information. However, we did not audit the information and
express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Clermont, Florida basic financial statements. The introductory
section, combining and individual fund financial statements and statistical section are presented
for purposes of additional analysis and are not a required part of the basic financial statements.
The accompanying schedule of expenditures of federal awards and state financial assistance is
presented for purposes of additional analysis as required by U. S. Office of Management and
Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and
Chapter 10.550, Rulesof the Auditor General and is also not a required part of the basic
financial statements of the City of Clermont, Florida. The schedule of expenditures of federal
awards and state financial assistance and the combining and individual nonmajor fund financial
statements and schedules have been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we express no opinion on them.
March 19, 2009
2
MANAGEMENT’S DISCUSSION AND ANALYSIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Clermont, Florida we offer readers of the City of Clermont’s (the City)
financial statements this narrative overview and analysis of the financial activities of the City of
Clermont for the fiscal year ended September 30, 2008. 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 iii through vii of this report.
Financial Highlights
• The City of Clermont’s assets exceeded its liabilities at September 30, 2008 by
$126,937,864 (net assets). Of this amount, $30,049,284 (unrestricted net assets) may
be used to meet the City’s ongoing obligations to citizens and creditors.
• The City’s total net assets increased by $16,214,605 (or 15%) over the previous fiscal
year. There was also an increase in net assets of $453,886 due to a prior period
adjustment.
• At September 30, 2008 the City of Clermont’s governmental funds reported combined
ending fund balances of $21,502,836 a decrease of $1,084,841 over the previous fiscal
year. Of this amount $19,382,803 (unreserved fund balance) is available for spending
at the government’s discretion. There was also a decrease in fund balances of
$250,769 due to a prior period adjustment.
• The General Fund, the City’s primary operating fund, reported an unreserved fund
balance of $9,572,280, which represents 30% of total general fund expenditures.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Clermont’s
basic financial statements. The City’s basic financial statements are comprised of three
components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This report also contains other supplementary information in addition to
the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Clermont’s financial position, in a
manner similar to a private-sector business. They include a Statement of Net Assets and a
Statement of Activities. These statements appear on pages 15 and 16 of the report.
The Statement of Net Assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The Statement of Activities presents information showing how the City’s net assets changed during
the most recent fiscal year. All changes in net assets 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).
3
MANAGEMENT’S DISCUSSION AND ANALYSIS - CONTINUED
Both of the government-wide financial statements distinguish functions of the City of Clermont that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City of Clermont
include general government, public safety, physical environment, transportation, economic
environment, human services, and culture and recreation. The business-type activities of the City
of Clermont include water, sewer, sanitation, and stormwater utilities.
The government-wide financial statements include only the City of Clermont itself (known as the
primary government) and one blended component unit (The City of Clermont Community
Redevelopment Trust Fund).
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Clermont, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City of Clermont can be
divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating the City’s
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City of Clermont maintains ten individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the General Fund, and the Infrastructure
Fund and the Community Redevelopment Fund, all of which are considered to be major funds.
Data from the other seven governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major governmental funds is provided in
the form of combining statements elsewhere in this report.
The City of Clermont adopts an annual appropriated budget for all of its governmental funds.
Budgetary comparison statements have been provided for the General Fund to demonstrate
compliance with this budget at page 20. Budgetary comparison schedules have been provided for
the Infrastructure Fund and the Community Redevelopment Fund on pages 22-23. Other
nonmajor funds comparisons can be found beginning on page 66.
The basic governmental fund financial statements can be found on pages 17 - 23 of this report.
4
MANAGEMENT’S DISCUSSION AND ANALYSIS - CONTINUED
Proprietary funds. The City of Clermont maintains two types of proprietary funds: enterprise and
internal service, which can be found on pages 24-29 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 and sanitation which are all considered to be major funds. Data for the
Stormwater Fund is also included since it is the only nonmajor fund.
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 30 - 31 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 33 - 57 of this report.
Other information. The combining statements referred to earlier in connection with other
governmental and proprietary funds are presented immediately following the notes to the financial
statements. Combining and individual fund statements and schedules can be found on pages 62 -
71 of this report.
Government-Wide Financial Analysis
The following is a summary of the City’s net assets for governmental and business-type activities
for the current year as compared to the prior year. For more detail see the Statement of Net
Assets on page 15.
5
MANAGEMENT’S DISCUSSION AND ANALYSIS - CONTINUED
CITY OF CLERMONT’S Net Assets
Governmental Activities Business-type Activities Total
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
Assets:
Current and other assets $ 23,365,386 $ 23,914,752 $ 35,551,637 $ 53,538,468 $ 58,917,023 $ 77,453,220
Capital assets 38,254,015 26,543,013 63,171,994 41,767,574 101,426,009 68,310,587
Total assets 61,619,401 50,457,765 98,723,994 95,306,042 160,343,009 145,763,807
Liabilities:
Long-term liabilities
outstanding 11,319,769 11,144,514 16,872,313 16,954,473 28,192,082 28,098,987
Other liabilities 1,932,670 1,199,517 3,280,416 5,742,044 5,213,086 6,941,561
Total liabilities 13,252,439 12,344,031 20,152,729 22,696,517 33,405,168 35,040,548
Net assets:
Invested in capital assets,
Net of related debt 27,462,150 15,824,872 46,568,955 24,836,899 74,031,105 40,661,771
Restricted 8,958,624 7,829,950 13,898,851 36,931,532 22,857,475 44,761,482
Unrestricted 11,946,188 14,458,912 18,103,096 10,841,094 30,049,284 25,300,006
Total net assets $ 48,366,962 $ 38,113,734 $ 78,570,902 $ 72,609,525 $126,937,864 $110,723,259
The City’s total net assets at September 30, 2008 were $126,937,864. Of the City’s total net
assets $74,031,105 (58%) 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 assets, $22,857,475 (18%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of the City’s
total net assets, $30,049,284 (24%) 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 assets increased by $16,214,605 during the current fiscal year. Almost half of this
increase was due to the construction in progress of the East Side and Greater Hills Water
Treatment Plants and a reclaimed water plant, which significantly increased capital assets.
Restricted reserves represent the accumulation of impact fee funds for upcoming and ongoing
capital projects. Unrestricted reserves represent increases in investment cash in governmental
funds. The increase is due to actual revenues exceeding anticipated revenues, which is the result
of growth in the City’s tax base.
The following is a summary of the City’s governmental and business-type activities for fiscal year
2007-08, including revenues and expenses, with a comparison to the prior year. For more detail
see the Statement of Activities on page 16.
6
MANAGEMENT’S DISCUSSION AND ANALYSIS – CONTINUED
CITY OF CLERMONT’S Changes in Net Assets
Governmental Activities Business-type Activities Total
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
Revenues:
Program revenues -
Charges for services $ 3,318,136 $ 3,103,384 $13,356,193 $12,875,170 $ 16,674,329 $ 15,978,554
Operating grants and
contributions 1,047,030 922,836 700,000 38,261 1,747,030 961,097
Capital grants and
contributions 7,329,269 2,517,692 1,479,537 3,675,902 8,808,806 6,193,594
General revenues -
Property Taxes 7,749,126 7,452,155 - - 7,749,126 7,452,155
Franchise Fees 1,912,399 1,807,878 - - 1,912,399 1,807,878
Utility Taxes 1,990,457 1,881,092 - - 1,990,457 1,881,093
Intergovernmental 4,776,028 4,952,062 - - 4,776,028 4,952,061
Investment income and
miscellaneous 901,255 1,215,447 1,852,522 2,612,266 2,753,777 3,827,713
Total revenues 29,023,700 23,852,546 17,388,252 19,201,599 46,411,952 43,054,145
Expenses:
General government 4,204,200 3,297,326 - - 4,204,200 3,297,326
Public safety 10,329,913 8,782,773 - - 10,329,913 8,782,773
Physical environment 513,364 469,591 - - 513,364 469,591
Transportation 1,544,426 1,254,792 - - 1,544,426 1,254,792
Economic environment 47,687 51,766 - - 47,687 51,766
Human services 106,890 130,244 - - 106,890 130,244
Culture and recreation 2,060,547 2,440,608 - - 2,060,547 2,440,608
Interest on long-term
debt 459,883 226,090 - - 459,883 226,090
Water - - 3,737,133 2,987,239 3,737,133 2,987,239
Sewer - - 4,520,756 3,895,501 4,520,756 3,895,501
Sanitation - - 2,122,675 1,816,156 2,122,675 1,816,156
Stormwater - - 549,873 427,070 549,873 427,070
Total expenses 19,266,910 16,653,190 10,930,437 9,125,966 30,197,347 25,779,156
Increase (Decrease) in
Net Assets Before Transfers 9,756,790 7,199,356 6,457,815 10,075,633 16,214,205 17,274,989
Transfers 496,438 509,440 (496,438) (509,440) - -
Increase in Net Assets 10,253,228 7,708,796 5,961,377 9,566,193 16,214,605 17,274,989
Net Assets – Beginning,
As Restated
38,113,734
30,404,938
72,609,525
63,043,332
110,723,259
93,448,270
Net Assets – Ending $ 48,366,962 $ 38,113,734 $ 78,570,902 $ 72,609,525 $ 126,937,864 $ 110,723,259
7
Governm
$10,253,2
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MAN
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Capital grants
County grant
Charges for s
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The most sign
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ental activitie
ental activitie
0
0
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General gover
$4,204,20
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Exp
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$10,32
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’S DISCUSS
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City’s tax rate
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fire impact
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d Program
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296,971 (4%
3,946 (6%).
e structure.
reased by $
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214,752 prim
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eled inflation
observed in
el in both the
program re
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sportation/Public
works
C
4,426
$2,06
$1,503,16
Revenues
ANALYSIS - C
ased the City
:
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These incre
$4,811,577 p
n land.
marily due to
s represents
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police and fi
venues and
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Culture and recreation
60,547
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$6,738,720
- Governm
CONTINUED
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year. Franc
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and other
$513,364
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ajority
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$0
8
MANAGEMENT’S DISCUSSION AND ANALYSIS - CONTINUED
The following pie chart illustrates the composition of governmental activities revenue and its
percent in relation to total governmental activities revenues.
Business-type activities - Business-type activities increased the City of Clermont’s net assets by
$5,961,377. Key elements of this increase are as follows:
• Charges for services for business-type activities increased by $1,099,816 (11%), primarily
due to increase in demand.
• Capital contributions totaled $1,479,537. These contributions are water and sewer impact
fees paid by developers. The fees were adopted by the City to require new development to
pay its proportionate share of the capital costs necessary to accommodate new
development impacts on the City’s water and sewer system. The City is using this revenue
for large capital projects that are currently under construction such as the Sunburst Lane
and Greater Hills Water Treatment Plants and a Water Reclamation Plant.
Intergovernmental, 16%
Charges for services,
11%
Operating grants and
contributions, 4%
Investment income &
miscellaneous , 3%
Other taxes, 13%
Capital grants and
contributions, 25%
Property taxes, 27%
Revenues by Source - Governmental Activities
Intergovernmental Charges for services Operating grants and contributions
Investment income & miscellaneous Other taxes Capital grants and contributions
Property taxes
9
The follow
type activ
type activ
The follo
percent in
$1,00
$2,00
$3,00
$4,00
$5,00
$6,00
$7,00
$8,00
MAN
wing graph i
vities. This c
vities are self
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n relation to t
$0
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00,000
00,000
00,000
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$3,73
Inv
Cha
AGEMENT’
s a comparis
chart is inten
f-supporting.
hart illustrate
total busines
Water
37,133
$6,214,213
Expenses a
Cap
Con
Revenu
vestment income
arges for Service
S DISCUSS
son of progra
nded to give
.
es the com
ss-type activi
Sewe
$4,520,756
3
$
and Progra
pital Grants and
ntributions, 9%
es by Sou
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s
SION AND A
am revenues
e the reader
position of
ities revenue
er
$2,1
5,341,030
am Revenue
Investmen
miscellan
Charge
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s Ope
Capi
NALYSIS –
s and progra
an idea of th
business-typ
es.
Sanitation
22,675
$2,514,6
es - Busine
nt income &
neous , 11%
Opera
cont
es for Services,
77%
ness Activ
rating grants and
tal Grants and C
CONTINUE
am expenses
he degree to
pe activities
Stormw
$549,873
686
ss Type Ac
Expenses
Program R
ating grants and
tributions, 4%
vities
d contributions
ontributions
D
s for all busin
o which busin
revenue an
water
$1,465,801
ctivities
Revenue
ness-
ness-
nd its
10
MANAGEMENT’S DISCUSSION AND ANALYSIS – CONTINUED
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, unreserved 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, 2008, the City of Clermont’s governmental funds reported combined
ending fund balances of $21,502,836 a decrease of $1,084,841 in comparison with the prior
year. Of the governmental funds combined ending fund balances, $19,382,803 (90.1%)
represents unreserved fund balance, which is available for spending at the City’s discretion.
The remainder of fund balance is reserved to indicate that it is not available for spending
because it has already been committed for debt service, inventories and prepaid expenses, or it
is being held in a non-expendable trust fund.
The general fund is the chief operating fund of the City of Clermont. As of September 30, 2008,
the fund balance in the General Fund was $9,780,786 an increase of $345,472 in comparison
with the prior year. Of the total fund balance in the General Fund, $9,572,280 (99%) was
unreserved fund balance. As a measure of the general fund’s liquidity, it may be useful to
compare both unreserved fund balance and total fund balance to total fund expenditures.
Unreserved fund balance represents 30% of total general fund expenditures, while total fund
balance represents 30% of that same amount. Contributing to this increase in fund balance is a
grant received from the County which partially offset a recreation land purchase made in the
prior year.
The City also has an Infrastructure Special Revenue Fund that is considered a major fund under
criteria set forth by GASB Statement #34. This fund is used to account for the City’s share of
the Local Government Infrastructure Surtax. The surtax, which represents a countywide one-
cent increase in the state sales tax, was authorized for an additional fifteen years by the voters
of Lake County in November, 2001. The surtax may only be used for infrastructure projects or
public safety equipment with a useful life in excess of five years or on debt issued to finance the
above. During fiscal year 2007-08, the fund balance of the infrastructure fund decreased by
$2,874,894. This decrease is due to the transfer of funds to the Capital Projects Fund for
expenses associated with the construction of the Fire Administration facility as well as funding
for the future construction of a community center.
The Community Redevelopment Special Revenue fund is considered a major fund in order for
our external auditors to express an opinion on this fund as required by Florida Statutes chapter
163.387(8). This fund was created in 1997 as a dependent taxing district. The incremental
annual increase in tax over the base years is used to fund projects. As of September 30, 2008,
the fund balance was $907,346 an increase of $303,744 over the prior year. Currently, phase II
of the streetscape improvements in this district is being engineered.
The remainder of the change ($1,140,837) to the governmental fund balance was from the non-
major governmental funds. Recreation, police and fire impact fee fund balances combined
decreased a total of $2,610,482. The capital projects fund balance increased by $3,652,722.
The fund balances in the remaining non-major funds increased a total of $98,597.
11
MANAGEMENT’S DISCUSSION AND ANALYSIS – CONTINUED
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 and sanitation.
As of September 30, 2008, the City of Clermont’s proprietary funds reported total net assets of
$78,570,902 an increase of $5,961,377 in comparison with the prior year. Total net assets also
increased by $704,655 due to a prior period adjustment. Of the proprietary funds total net
assets, $18,103,096 (23%) represents unrestricted net assets. Restricted assets of
$13,898,851 (18%) are reserved for capital improvements.
The Water Fund accounts for the provision of potable water service 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, 2008, the City of Clermont’s water fund reported total net assets of $27,174,724, an
increase of $2,546,166 (10%) in comparison with the prior year. This increase is partially due to
servicing an expanded customer base. The residential customer base has increased from
16,394 customers in September 2007 to 16,959 as of September 2008. Approximately 54% of
the increase in net assets was operating income. The remainder was from impact fee
collections that are accumulating for large capital projects that will expand the current water
system.
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, 2008, the
City of Clermont’s sewer fund reported total net assets of $44,036,686, an increase of
$2,165,787 in comparison with the prior year. This increase is primarily due to impact fee
collections. Much of the money collected for impact fees is accumulating for large capital
projects that will expand the current sewer system. The remainder of the increase is due to
servicing an expanded customer base. The residential customer base has increased from
11,554 customers in September 2007 to 11,913 in September 2008.
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, 2008, the City of Clermont’s sanitation fund
reported total net assets of $2,942,867, an increase of $438,329 in comparison with the prior
year. This was primarily due to operating income.
General Fund Budgetary Highlights
During the year there was a $1,659,279 increase in appropriations between the original and
final amended budget. Following are the main components of the increase:
• $160,000 increase for a FEMA grant to purchase a Fire Simulator Trailer.
• $ 26,780 increase for the demolition of the Cooper Memorial Library Building.
• $960,000 increase for the Legends Way road extension and the Lake Winona Bridge.
12
MANAGEMENT’S DISCUSSION AND ANALYSIS - CONTINUED
Actual revenues were $210,973 more than budgeted revenue and actual expenditures were
$1,308,702 less than budgeted expenditures.
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 7 on
pages 47 - 48 of this report.
CITY OF CLERMONT’S Capital Assets
(net of depreciation)
Governmental Activities Business-type Activities Total
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
Land $21,652,809 $12,943,998 $ 1,464,129 $ 1,464,129 $23,116,938 $14,408,127
Buildings 5,823,494 4,760,998 304 426 5,823,798 4,761,424
Improvements/
Infrastructure 5,505,263 4,120,723 32,790,570 27,881,360 38,295,833 32,002,083
Machinery and Equipment 3,771,884 3,612,628 2,160,564 2,352,221 5,932,448 5,964,849
Construction in progress 1,500,565 1,104,666 26,756,427 10,069,438 28,256,991 11,174,104
Total $ 38,254,015 $ 26,543,013 $ 63,171,994 $ 41,767,574 $ 101,426,008 $ 68,310,587
The City of Clermont’s investment in capital assets for its governmental and business-type
activities as of September 30, 2008, amounts to $101,426,008 (net of accumulated
depreciation). This investment in capital assets includes land, buildings,
improvements/infrastructure, and machinery and equipment. The total increase in the City’s
investment in capital assets for the current fiscal year was $33,115,421 (48%). Major capital
asset events during the current fiscal year included the following:
• Acquisition of the Inland Grove recreational property for $8,250,000.
• Completion of the Fire Administration building for $1,344,000.
• Completion of Legends Way road extension for $1,143,000.
• Completion of the Lake Winona bridge and culvert for $630,000.
• Purchase of a Typhoon Fire truck for $262,500.
• Purchase of communication software system for Police for $397,000.
• Completion of the Sunburst water treatment plant for $4,145,000.
• Completion of the Bloxam Avenue drainage improvement project for $1,228,000.
• Construction in progress includes construction of the Greater Hills Water Treatment
Plant, the East Reclaimed Water Plant and the Lift Station Telemetry project.
13
MANAGEMENT’S DISCUSSION AND ANALYSIS – CONTINUED
Debt Administration
The following is a summary of the City’s long-term debt for governmental and business-type
activity for the current year with a comparison to the prior year. Additional information on long-
term debt can be found in Note 8 on pages 48 - 50 of this report.
CITY OF CLERMONT’S Outstanding Debt
Governmental Activities Business-type Activities Total
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
Revenue bonds payable $ 4,935,000 $ 5,360,000 $ 17,065,000 $ 17,455,000 $ 22,000,000 $ 22,815,000
Notes payable 5,856,865 5,358,141 - - 5,856,865 5,358,141
Total $ 10,791,865 $ 10,718,141 $ 17,455,000 $ 17,455,000 $ 28,246,865 $ 28,173,141
At the end of the current fiscal year, the City of Clermont had total debt outstanding of
$28,246,865. This debt includes revenue bonds payable and notes payable. The City of
Clermont issued a note payable during fiscal year 2007-2008 for the purchase of recreation
land.
Economic Factors and Next Year’s Budgets and Rates
• The annual unemployment rate for Lake County in 2008 was 6.5%, which is an increase
from a rate of 4.7% in 2007. This is an increase of 1.8% over 2007 and is slightly lower
than the state’s average of 6.9%, however, it is slightly higher than the national average
rate of 6.2%.
• The taxable value of commercial and residential property increased 23% from fiscal year
2006-07 to fiscal year 2007-08.
• Population increased 2.6% from 22,882 in 2007 to 23,476 in 2008.
As of September 30, 2008, the General Fund unreserved fund balance was $9,572,280. The
City appropriated $308,655 of this amount for spending in the 2008-09 fiscal year budget. The
same property tax rate is included for the general fund for the 2008-09 fiscal year budget.
However, property tax revenue is projected to be nearly $255,000 lower in fiscal year 2008-
2009 due to the approval of Amendment 1 by voters in January 2008.
No utility rate adjustments were proposed for the 2008-09 fiscal year with the exception of the
sewer rate structure. The sewer rates increased 2.39% on October 1, 2008 pursuant to a
required adjustment in accordance with the Florida Public Service Commission Annual Deflator
Index previously adopted by the Clermont City Council.
Requests for Information
This financial report is designed to provide a general overview of the City of Clermont’s finances
for all those with an interest in the government’s finances. Questions concerning any of the
information should be addressed to the office of the Administrative Services Director, City of
Clermont, P.O. Box 120219, Clermont, Florida 34712.
14
BASIC FINANCIAL STATEMENTS
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET ASSETS
September 30, 2008
Primary Government
Governmental
Activities
Business-type
Activities Total
Assets:
Cash and cash equivalents 5,254,453$ 2,293,732$ 7,548,185$
Investments 16,154,811 9,370,350 25,525,161
Receivables, net 250,602 1,202,102 1,452,704
Inventories 31,304 48,259 79,563
Due from other governments 1,447,389 2,396 1,449,785
Internal balances 49,625 (49,625) -
Prepaid costs 177,202 92,413 269,615
Restricted assets:
Cash and cash equivalents - 1,112,054 1,112,054
Investments - 21,032,749 21,032,749
Interest receivable - 150,605 150,605
Bond issuance costs - 296,602 296,602
Capital assets not being depreciated 23,153,374 28,220,556 51,373,930
Capital assets being depreciated, net of
accumulated depreciation 15,100,641 34,951,438 50,052,079
Total capital assets 38,254,015 63,171,994 101,426,009
Total assets 61,619,401 98,723,631 160,343,032
Liabilities:
Accounts payable and accrued expenses 1,932,670 3,280,416 5,213,086
Noncurrent liabilities:
Due within one year 528,800 436,927 965,727
Due in more than one year 10,790,969 16,435,386 27,226,355
Total liabilities 13,252,439 20,152,729 33,405,168
Net Assets:
Invested in capital assets, net of related debt 27,462,150 46,568,955 74,031,105
Restricted for:
Capital improvements 7,047,097 13,898,851 20,945,948
Community redevelopment 907,346 - 907,346
Debt service 360,936 - 360,936
Other projects 643,245 - 643,245
Unrestricted 11,946,188 18,103,096 30,049,284
Total net assets 48,366,962$ 78,570,902$ 126,937,864$
The accompanying Notes to Financial Statements are an integral part of this statement.
15
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16
CITY OF CLERMONT, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2008
General
Infrastructure
Special
Revenue
Community
Redevelopment
Special Revenue
Other
Governmental
Funds
Total
Governmental
Funds
Assets:
Cash and cash equivalents -$ -$ 907,346$ 3,940,511$ 4,847,857$
Investments 10,239,983 5,914,828 - - 16,154,811
Receivables, net 250,602 - - - 250,602
Inventories, at cost 31,304 - - - 31,304
Due from other funds - - - 4,487,001 4,487,001
Due from other governments 1,319,362 128,027 - - 1,447,389
Prepaid costs 177,202 - - - 177,202
Total assets 12,018,453$ 6,042,855$ 907,346$ 8,427,512$ 27,396,166$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 832,212$ 500$ -$ 163,730$ 996,442$
Due to other funds 995,568 3,491,433 - - 4,487,001
Accrued liabilities 409,887 - - - 409,887
Total liabilities 2,237,667 3,491,933 - 163,730 5,893,330
Fund balances:
Reserved for:
Inventories and prepaid costs 208,506 - - - 208,506
Community redevelopment - - 907,346 - 907,346
Debt service - - - 360,936 360,936
Perpetual care - - - 643,245 643,245
Unreserved, reported in:
General fund 9,572,280 - - - 9,572,280
Special revenue funds - 2,550,922 - 2,763,426 5,314,348
Capital projects funds - - - 4,496,175 4,496,175
Total fund balances 9,780,786 2,550,922 907,346 8,263,782 21,502,836
Total liabilities and
fund balances 12,018,453$ 6,042,855$ 907,346$ 8,427,512$
Amounts reported for governmental activities in the Statement of Net Assets are
different because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in this fund financial statement, but are reported in the
governmental activities of the Statement of Net Assets. 38,254,015
Accrued interest payable is not due in the current period and therefore is not reported
in the funds.(111,835)
The assets and liabilities of certain internal service funds are not included in the fund
financial statement, but are included in the governmental activities of the Statement
of Net Assets. 41,715
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds.(11,319,769)
Net Assets of Governmental Activities in the Statement of Net Assets 48,366,962$
The accompanying Notes to Financial Statements are an integral part of this statement.
17
CITY OF CLERMONT, FLORIDA
GOVERNMENTAL FUNDS
General
Infrastructure
Special Revenue
Community
Redevelopment
Special Revenue
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:
Taxes 11,361,074$ -$ 290,908$ -$ 11,651,982$
Licenses and permits 273,663 - - 561,543 835,206
Intergovernmental revenues 9,926,370 1,900,640 - 150,000 11,977,010
Charges for services 556,166 - - 87,240 643,406
Fines and forfeitures 320,842 - - - 320,842
Impact fees/special assessments - - - 1,209,360 1,209,360
Investment earnings 333,582 154,537 19,566 179,251 686,936
Miscellaneous 1,529,021 - - 153,730 1,682,751
Total revenues 24,300,718 2,055,177 310,474 2,341,124 29,007,493
Expenditures:
Current:
General government 3,020,731 - - 619,459 3,640,190
Public safety 10,033,536 - - 964,788 10,998,324
Physical environment 497,188 - - - 497,188
Transportation 2,953,710 22,552 - - 2,976,262
Economic environment 40,957 - 6,730 - 47,687
Human services 104,944 - - - 104,944
Culture and recreation 10,004,114 - - 19,862 10,023,976
Debt Service:
Principal retirement 5,781,435 - - 2,394,841 8,176,276
Interest and fiscal charges 41,112 - - 423,697 464,809
Capital outlay:
Public safety - - - 1,371,050 1,371,050
Culture and recreation - - - 538,066 538,066
Total expenditures 32,477,727 22,552 6,730 6,331,763 38,838,772
Excess (Deficiency) of Revenues (8,177,009) 2,032,625 303,744 (3,990,639) (9,831,279)
Over Expenditures
Other Financing Sources (Uses):
Notes issued 8,250,000 - - - 8,250,000
Transfers in 515,819 - - 5,951,780 6,467,599
Transfers out (243,338) (4,907,519) - (820,304) (5,971,161)
Net other financing sources (uses) 8,522,481 (4,907,519) - 5,131,476 8,746,438
Net Change in Fund Balances 345,472 (2,874,894) 303,744 1,140,837 (1,084,841)
Fund Balances - Beginning, as previously reported 9,686,083 5,425,816 603,602 7,122,945 22,587,677
Prior Period Adjustment (250,769) - - - (250,769)
Fund Balances - Beginning, as restated 9,435,314 5,425,816 603,602 7,122,945 22,336,908
Fund Balances - Ending 9,780,786$ 2,550,922$ 907,346$ 8,263,782$ 21,502,836$
Year Ended September 30, 2008
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
The accompanying Notes to Financial Statements are an integral part of this statement.
18
CITY OF CLERMONT, FLORIDA
Net change in fund balances - total governmental funds:(1,084,841)$
Amounts reported for Governmental Activities in the Statement of Activities are different
because:
Governmental funds report outlays for capital assets as expenditures because such
outlays use current financial resources. In contrast, the Statement of Activities
reports only a portion of the outlay as expense. The outlay is allocated over the
assets' estimated useful lives as depreciation expense for the period.
This is the amount by which capital outlays $13,561,862 exceeded depreciation
$1,844,646 in the current period.
The net effect of sales of capital assets is to decrease net assets.(6,214)
Governmental funds report bond proceeds as current financial resources. In contrast,
the Statement of Activities treats such issuance of debt as a liability. Governmental
funds report repayment of bond principal as an expenditure, In contrast, the
Statement of Activities treats such repayments as a reduction in long-term liabilities.
This is the amount by which proceeds exceeded repayments. (73,724)
Some expenses reported in the statement of activities do not require the use of
current financial resources and these are not reported as expenditures in
governmental funds: (96,605)
Internal service funds are used by management to charge the costs of certain
activities, such as fleet maintenance and information technology, to individual funds.
The net revenue (expense) of certain internal service funds is reported with
governmental activities.(202,604)
Change in net assets of governmental activities 10,253,228$
11,717,216
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
19
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual Amounts,
Budgetary Basis
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Taxes 11,198,902$ 11,198,902$ 11,361,074$ 162,172$
Licenses and permits 414,200 289,200 273,663 (15,537)
Intergovernmental revenues 9,538,209 9,729,492 9,462,280 (267,212)
Charges for services 443,095 469,595 556,166 86,571
Fines and forfeitures 141,250 141,250 320,842 179,592
Investment earnings 427,600 427,600 333,582 (94,018)
Miscellaneous 716,119 1,369,616 1,529,021 159,405
Total revenues 22,879,375 23,625,655 23,836,628 210,973
Expenditures:
Current:
General government:
City council 26,795 26,795 24,182 2,613
City clerk 249,020 249,020 223,775 25,245
City manager 444,520 444,520 436,216 8,304
Administrative services 1,041,286 1,073,648 992,519 81,129
Legal services 117,570 117,570 92,258 25,312
Planning & zoning 799,270 814,015 738,621 75,394
Engineering 387,875 387,875 357,002 30,873
Other general government 176,600 209,127 156,158 52,969
3,242,936 3,322,570 3,020,731 301,839
Public Safety:
Law enforcement 5,190,255 5,224,914 4,977,718 247,196
Fire control 4,253,408 4,732,823 4,591,728 141,095
9,443,663 9,957,737 9,569,446 388,291
Physical environment / Transportation 2,712,221 3,679,134 3,450,898 228,236
Economic environment / Human Services 171,860 175,185 145,901 29,284
Culture and recreation 2,002,380 2,123,500 1,754,114 369,386
Debt Service:
Principal 5,630,000 5,814,213 5,781,435 32,778
Interest and other charges 210,000 - 41,112 (41,112)
Total expenditures 23,413,060 25,072,339 23,763,637 1,308,702
GENERAL FUND
Year Ended September 30, 2008
CITY OF CLERMONT, FLORIDA
The accompanying Notes to Financial Statements are an integral part of this statement.
20
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL (CONTINUED)
Over Expenditures (533,685) (1,446,684) 72,991 1,519,675
Other Financing Sources (Uses):
Transfers in 550,600 550,600 515,819 (34,781)
Transfers out (201,865) (231,865) (243,338) (11,473)
Total other financing sources (uses) 348,735 318,735 272,481 (46,254)
Net Change in Fund Balance (184,950) (1,127,949) 345,472 1,473,421
Fund Balance - Beginning, as previously reported 9,686,083 9,686,083 9,686,083 -
Prior Period Adjustment - - (250,769) (250,769)
Fund Balance - Beginning, as restated 9,686,083 9,686,083 9,435,314 (250,769)
Fund Balance - Ending 9,501,133$ 8,558,134$ 9,780,786$ 1,222,652$
Excess (Deficiency) of Revenues
CITY OF CLERMONT, FLORIDA
GENERAL FUND
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
21
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Intergovernmental revenues 2,000,000$ 2,000,000$ 1,900,640$ (99,360)$
Investment earnings 110,000 110,000 154,537 44,537
Total revenues 2,110,000 2,110,000 2,055,177 (54,823)
Expenditures:
Transportation:
Roads & streets 33,000 33,000 22,552 10,448
Total expenditures 33,000 33,000 22,552 10,448
Excess (Deficiency) of Revenues Over
Expenditures 2,077,000 2,077,000 2,032,625 (44,375)
Other Financing Sources (Uses):
Transfers out (6,981,180) (6,981,180) (4,907,519) 2,073,661
Total other financing sources (uses) (6,981,180) (6,981,180) (4,907,519) 2,073,661
Net Change in Fund Balance (4,904,180) (4,904,180) (2,874,894) 2,029,286
Fund Balances - Beginning 5,425,816 5,425,816 5,425,816 -
Fund Balances - Ending 521,636$ 521,636$ 2,550,922$ 2,029,286$
CITY OF CLERMONT, FLORIDA
INFRASTRUCTURE SPECIAL REVENUE FUND
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
22
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Taxes 321,365$ 321,365$ 290,908$ (30,457)$
Investment earnings 16,000 16,000 19,566 3,566
Total revenues 337,365 337,365 310,474 (26,891)
Expenditures:
Economic environment:
Economic development 900,175 900,175 6,730 893,445
Total expenditures 900,175 900,175 6,730 893,445
Excess (Deficiency) of Revenues
Over Expenditures (562,810) (562,810) 303,744 866,554
Net Change in Fund Balances (562,810) (562,810) 303,744 866,554
Fund Balances - Beginning 603,602 603,602 603,602 -
Fund Balances - Ending 40,792$ 40,792$ 907,346$ 866,554$
CITY OF CLERMONT, FLORIDA
COMMUNITY REDEVELOPMENT SPECIAL REVENUE FUND
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
23
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25
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29
CITY OF CLERMONT, FLORIDA
STATEMENT OF FIDUCIARY NET ASSESTS
FIDUCIARY FUNDS
September 30, 2008
Total Employee
Pension Funds
Assets:
Cash and cash equivalents $ 231,472
Receivables:
Employer contribution receivable 21,761
Due from other governments 48,391
Total receivables 70,152
Investments:
U.S. Government & other debt securities 3,543,188
Equities 7,750,969
Total investments 11,294,157
Total assets 11,595,781
Liabilities:
Accounts payable -
Total liabilities -
Net Assets Held in Trust
for Pension Benefits 11,595,781$
30
CITY OF CLERMONT, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Year Ended September 30, 2008
Total Employee
Pension Funds
Additions:
Contributions:
Employer 1,316,263$
Plan members 106,365
State 464,090
Total contributions 1,886,718
Investment earnings:
Net increase (decrease) in fair value of investments (1,501,581)
Total net investment earnings (1,501,581)
Total additions 385,137
Deductions:
Benefits/distributions 244,259
Administrative 50,386
Total deductions 294,645
Change in Net Assets 90,492
Net Assets - Beginning 11,505,289
Net Assets - End 11,595,781$
31
32
NOTES TO FINANCIAL STATEMENTS
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2008
Note 1 - Summary of Significant Accounting Policies:
A. Reporting Entity
The City of Clermont, Florida (the City) is a political subdivision of the State of Florida located in
Lake County. The City of Clermont was incorporated under State law in December 1916 and
operates under the council-manager form of government under its charter adopted pursuant to
H.B. 2223, Ch.67-1217 Special Acts, of the State of Florida. The legislative branch of the City is
composed of a Mayor and four (4) members elected Council. The City Council is responsible
for the establishment and adoption of policy. The execution of such policy is the responsibility
of the Council appointed City Manager.
In evaluating how to define the government, for financial reporting purposes, the City has
considered all potential component units. The definition of the reporting entity is based primarily
on the notion of financial accountability. A primary government is financially accountable for the
organizations that make up its legal entity. It is also financially accountable for legally separate
organizations if its officials appoint a voting majority of an organization’s governing body, and
either it is able to impose its will on that organization or there is a potential for the organization
to provide specific financial benefits to, or to impose specific financial burdens on, the primary
government. A primary government may also be financially accountable for governmental
organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects or activities of, or the level of services performed or provided
by, the organization. A financial benefit or burden relationship exists if the primary government
(a) is entitled to the organizations’ resources; (b) is legally obligated or has otherwise assumed
the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is
obligated in some manner for the debt of the organization. In applying the above criteria, the
City has one blended component unit as follows:
The City of Clermont Community Redevelopment Fund
The City of Clermont created the Downtown Redevelopment Agency in May of 1997. This is a
dependent taxing district established in accordance with Chapter 163, Part III, Florida Statutes.
Notification to affected taxing agency was done in compliance with Chapter 163.346, Part III,
Florida Statutes. The incremental annual increase in tax over the base years will be used to
fund projects designed to enhance and improve the described area. The City Council, being
the duly elected governmental body for the designated area, passed Resolution 97-950, which
established the City of Clermont as the Redevelopment Agency for the purpose of carrying out
the community redevelopment programs and plans within the area. Through Ordinance 359-M
the City established the Community Redevelopment Trust Fund to account for all transactions
generated by this special revenue fund.
33
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 1 - Summary of Significant Accounting Policies (Continued):
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the
statement of changes in net assets) report information on all of the nonfiduciary activities of
the City. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon enough thereafter
to pay liabilities of the current period. For this purpose, the government considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
34
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available
only when cash is received by the City.
The government reports the following funds:
Major Governmental Funds
The General Fund is the government’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
The Infrastructure Special Revenue Fund was established to account for the
proceeds of the Local Government Infrastructure Surtax. The proceeds and interest
accrued thereto, by law are only to be used to finance, plan and construct
infrastructure.
The Community Redevelopment Fund was established as a dependent taxing
district. The incremental annual increase in tax over the base years will be used to
fund projects designed to enhance and improve the described area.
Non-Major Governmental Fund Types
Special Revenue Funds account for specific revenue sources that are restricted by
law or administrative action to expenditures for specific purposes.
Debt Service Fund is used to account for the accumulation of resources for the
payment of principal and interest on certain long-term debt.
Capital Projects Fund account for financial resources segregated for the acquisition
or construction of major capital facilities.
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.
35
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Major Proprietary Funds (Continued)
Sewer Fund is used to account for the operations of the City’s sewer system, which
is financed in a manner similar to private business enterprises, where the costs,
including depreciation, of providing services to the general public on an ongoing
basis are financed primarily through user charges.
Sanitation Fund is used to account for the fiscal activities of the City’s refuse
collection and disposal operation.
Non-Major Proprietary Funds
Stormwater Fund (Enterprise Fund) is used to account for the fiscal activities of the
City’s stormwater drainage operation, as well as the funding and payment of related
debt.
Internal Service Fund is used to account for the costs of group insurance which are
charged to other departments on a cost reimbursement basis.
Fiduciary Funds
Pension Trust Funds account for activities of police officers, firefighters and general
employees retirement plans which accumulate resources for pension benefit
payments to qualified employees.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of
the Governmental Accounting Standards Board. Governments also have the option of
following subsequent private-sector guidance for their business-type activities and
enterprise funds, subject to this same limitation. The government has elected not to follow
subsequent private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are other charges between the
City’s water and sewer function and various other functions of the government. Elimination
of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
36
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than as program revenues. Likewise, general revenues
include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the City’s water, sewer, sanitation and stormwater utility
funds are charges to customers for sales and services. The City also recognizes as
operating revenue the meter fees intended to recover the cost of connecting new customers
to the system. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government’s
policy to use restricted resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
The government’s cash and cash equivalents are considered to be cash on
hand, demand deposits, and short-term investments with original maturities of
three months or less from the date of acquisition.
Investments of the City are reported at fair value. The City’s investments consist
of investments authorized per their investment policy adopted in accordance with
Section 218.415, Florida Statutes. The City has implemented Government
Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment
Risk Disclosures.
2. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either “due to/from
other funds” (i.e., the current portion of interfund loans) or “advances to/from
other funds” (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as “due to/from other funds.”
37
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
2. Receivables and Payables - (Continued)
Any residual balances outstanding between the governmental activities and
business-type activities are reported in the government-wide financial statements
as “internal balances”.
Advances between funds, as reported in the fund financial statements, are offset
by a fund balance reserve account in applicable governmental funds to indicate
that they are not available for appropriation and are not expendable available
financial resources.
All receivables are shown net of an allowance for uncollectables. The County
bills and collects property taxes and remits them to the City. City property tax
revenues are recognized when levied to the extent that they result in current
receivables.
All property is reassessed according to its fair value on the lien date, or January
1 of each year. Taxes are levied on October 1 of each year. Discounts are
allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January, and 1% in the month of
February. The taxes paid in March are without discount. All unpaid taxes
become delinquent on April 1 following the year in which they are assessed. On
or around May 31 following the tax year, certificates are sold for all delinquent
taxes on real property.
3. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method.
Inventories of governmental funds are recorded as expenditures when consumed
rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items in both government-wide and fund financial
statements.
4. Restricted Assets
Certain proceeds of the City’s enterprise fund revenue bonds, as well as certain
resources set aside for their repayment, are classified as restricted assets on the
balance sheet because they are maintained in separate bank accounts and their
use is limited by applicable bond covenants. Assets so designated are identified
as restricted assets on the balance sheet.
38
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
5. Capital Assets
Capital assets, which include property, plant, 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 City as assets with
an initial, individual cost of $750 or more and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated capital assets are recorded at estimated
fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of
business-type activities is included as part of the capitalized value of the assets
constructed.
Capital assets of the City are depreciated using the straight line method over the
following estimated useful lives:
Assets Years
Buildings 10-50
Improvements 15-50
Infrastructure 30-50
Equipment & machinery 3-15
39
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
6. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused
vacation and sick pay benefits. All vacation pay is accrued when incurred in the
government-wide and proprietary financial statements. A portion of sick pay is
accrued for employees with at least ten (10) years of service. A liability for these
amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements. For
governmental activities, compensated absences are generally liquidated by the
general fund.
7. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the
fund financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities, business-type
activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of
the bonds using the effective interest method. Bonds payable are reported net of
the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond
premiums and discounts, as well as bond issuance costs, during the current
period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
8. Fund Equity
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally
restricted by outside parties for use for a specific purpose. Designations of fund
balance represent tentative management plans that are subject to change.
40
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 2 - Prior Period Adjustment
Beginning net assets in the water, sewer and stormwater funds have been adjusted for the
effects of certain construction in progress related costs that were incorrectly expensed in the
prior year. As a result, prior year operating income was understated by $583,994 in the water
fund, $54,817 in the sewer fund, and $65,844 in the stormwater fund.
Beginning fund balance of the General fund has been adjusted for removing an expenditure
twice that did not belong in the prior fiscal year. The effect was to overstate the change in fund
balance in the prior year by $250,769.
Note 3 - Reconciliation of Government-Wide and Fund Financial Statements:
A. Explanation of Certain Differences Between the Governmental Fund Statement of
Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide
Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances
includes a reconciliation between net changes in fund balances - total governmental funds
and changes in net assets of governmental activities as reported in the government-wide
statement of activities. One element of that reconciliation explains that “Governmental
funds report capital outlays as expenditures. However, in the statement of activities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation
expense.” The details of this $11,717,216 difference are as follows:
Capital outlay 13,561,862$
Depreciation expense (1,844,646)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net assets of governmental
activities 11,717,216$
Another element of that reconciliation states that “the issuance of long-term debt (e.g.,
bonds, leases) provides current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net assets.” The
details of this $73,724 difference are as follows:
Debt issued or incurred:
Loan proceeds (8,250,000)$
Principal repayment 8,176,276
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of governmental
activities (73,724)$
41
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 3 - Reconciliation of Government-Wide and Fund Financial Statements (Continued):
A. Explanation of Certain Differences Between the Governmental Fund Statement of
Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide
Statement of Activities (Continued)
Another element of that reconciliation states that “Some expenses reported in the statement
of activities do not require the use of current financial resources and therefore are not
reported as expenditures in governmental funds.” The details of this difference are as
follows:
Compensated absences 101,531$
Accrued interest payable (4,926)
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of governmental
activities 96,605$
Note 4 - Stewardship, Compliance, and Accountability:
Budgetary Information -
The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
(1) 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.
(2) Budget workshops are scheduled as needed.
(3) The general summary of the budget and notice of public hearing is published in
the local newspaper.
(4) Public hearings are conducted to obtain taxpayer comments.
(5) Prior to October 1, the budgets are legally enacted through passage of a
resolution.
(6) 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.
(7) The level of classification detail at which expenditures may not legally exceed
appropriations is the department level.
42
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 4 - Stewardship, Compliance, and Accountability (Continued):
Budgetary Information - (Continued)
(8) Appropriations lapse at the close of the fiscal year to the extent they have not
been expended. Encumbrance accounting is not used by the City.
(9) Budgets are adopted for the general fund, special revenue funds, debt service
funds and the capital projects fund on a basis consistent with generally accepted
accounting principles, except as described below under Budget Basis of
accounting. Budgets are also adopted for the enterprise funds: however, these
data are not presented under generally accepted accounting principles.
(10) 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. The City
does not budget for capital outlay expenditures and other financing sources related to the
acquisition of assets through notes payable. Also, the City does not budget for the state
pension contributions that must be recorded as intergovernmental revenue and public
safety expenditures in the General Fund GAAP financial statements.
For the fiscal year ended September 30, 2008 the following adjustments are necessary to
convert General Fund revenues, expenditures, and other financing sources on the GAAP
basis to the budgetary basis:
Revenues Expenditures
Other Financing
Sources (Uses)
General Fund:
GAAP Basis 24,300,718$ 32,477,727$ 8,522,481$
Nonbudgeted state pension amounts (464,090) (464,090) -
Nonbudgeted notes issued - (8,250,000) (8,250,000)
Budgetary basis 23,836,628$ 23,763,637$ 272,481$
43
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 5 - Cash and Investments:
Deposits
At year-end, the carrying amount of the City's deposits was $154,424 and the bank balance
was $366,645. Fiduciary fund cash held by the pension fund is not in the City’s bank. All
bank deposits were fully covered by federal depository insurance or by collateral held in
banks that are members of the State of Florida's Collateral Pool as specified under Florida
law. Florida Statutes provide for collateral pooling by banks and savings and loans. This
limits local government deposits to "authorized depositories".
Investments
Investments in all fund types are stated at fair value, which is the amount for which an
investment could be exchanged in a current transaction between willing parties, other than
in a forced liquidation sale. Fair value is based on quoted market prices. Changes in the
fair value of investments are recognized as revenue and included in investment income.
The City’s investment policies are governed by state statute and city ordinance. Authorized
investments are:
(a) The Local Government Surplus Funds Trust (SBA).
(b) SEC registered money market funds.
(c) Interest-bearing time deposits or savings accounts in qualified public depositories.
(d) Direct obligations of the U.S. Treasury.
(e) Federal agencies and instrumentalities.
(f) Securities of, or other interests in, any open-end or closed-end management-type
investment company or investment trust registered under the Investment Company
Act of 1940.
(g) Repurchase Agreements.
(h) Other investments authorized by ordinance.
The assets of the City’s police and firefighters pension funds, as well as the general
employees defined benefit pension fund, are invested in the pooled investment fund for
the Florida Municipal Pension Trust Fund (FMPTF). Investments held in this fund
consist of corporate bonds and stocks and cash equivalents. The fund is stated at fair
value, and investment earnings are allocated to participants in the fund based on their
equity in this pooled investment account is stated at fair value as provided by the Florida
Municipal Pension Fund.
44
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 5 - Cash and Investments (Continued):
Investments - (Continued)
Investments made by the City of Clermont at September 30, 2008 are summarized below.
Defined benefit pension plan investments, other than $7,750,969 in mutual funds investing
in equity securities, are included below. In accordance with GASB 31, investments are
reported at fair value.
Investment Type Fair Value Credit Rating
Weighted
Average
Maturity
Federal Agency Bond 15,191,442$ AAA
US Treasury Bond 3,931,314 TSY
Federal Agency Discount Note 27,435,153 A-1+
Repurchase Agreements 8,505,815 Unrated <90 days
Pension fixed income securities 3,543,188 AA/V4 5.04 years
55,063,724$
Credit Risk:
The City’s investment policy limits credit risk by restricting authorized investments to
those described above.
Custodial Credit Risk:
In the case of deposits, this is the risk that in the event of a bank failure, the City’s
deposits may not be returned to it. The City’s investment policy requires that bank
deposits be secured as provided by Chapter 280, Florida Statutes. This law requires
local governments to deposit funds only in financial institutions designated as qualified
public depositories by the Chief Financial Officer of the State of Florida, and creates
the Public Deposits Trust Fund, a multiple financial institution pool with the ability to
assess its member financial institutions for collateral shortfalls if a default or
insolvency has occurred. At September 30, 2008, all of the city’s bank deposits were
in qualified public depositories.
45
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 5 - Cash and Investments (Continued):
Investments - (Continued)
For an investment, this is the risk that, in the event of the failure of the counterparty,
the government will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. At September 30, 2008,
none of the investments listed are exposed to custodial credit risk because their
existence is not evidenced by securities that exist in physical or book entry form.
Concentration of Credit Risk:
The City’s investment policy requires diversification, but does not specify limits on
types of investments.
Interest Rate Risk:
The City’s investment policy does not specifically address interest rate risk, however
the general investment policy is to apply the prudent-person rule: Investments are
made as a prudent person would be expected to act, with discretion and intelligence,
to seek reasonable income, preserve capital, and in general, avoid speculative
investments. The City manages its exposure to declines in fair values by investing
primarily in pooled investments that have a weighted average maturity of less than
three months.
Note 6 - Receivables:
Receivables as of year end for the City’s individual major funds and non-major funds, including
the applicable allowances for uncollectible accounts, are as follows:
Nonmajor
General Water Sewer Sanitation Enterprise
Fund Fund Fund Fund Fund Total
Receivables:
Accounts 856$ 339,439$ 410,360$ 241,724$ 77,026$ 1,069,405$
Taxes 37,326 - - - - 37,326
Other 212,947 67,008 285 - 126,397 406,637
Less allowance for
uncollectible accounts (527) (19,982) (22,221) (13,377) (4,557) (60,664)
250,602$ 386,465$ 388,424$ 228,347$ 198,866$ 1,452,704$
46
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 7 - Capital Assets:
Capital asset activity for the year ended September 30, 2008 was as follows:
Beginning Balance
(as restated) Increases Decreases Ending Balance
Governmental Activities:
Capital assets, not being depreciated:
Land 12,943,998$ 8,708,811$ -$ 21,652,809$
Construction in progress 1,104,666 3,512,901 (3,117,002) 1,500,565
Total capital assets, not being depreciated 14,048,664 12,221,712 (3,117,002) 23,153,374
Capital assets, being depreciated:
Buildings 9,006,091 1,376,273 (457,051) 9,925,313
Improvements/infrastructure 11,346,732 1,837,726 - 13,184,458
Machinery and equipment 7,914,527 1,243,153 (74,629) 9,083,051
Total capital assets being depreciated 28,267,350 4,457,152 (531,680) 32,192,822
Less accumulated depreciation for:
Buildings (4,245,093) (313,777) 457,051 (4,101,819)
Improvements/infrastructure (7,226,009) (453,186) - (7,679,195)
Machinery and equipment (4,301,899) (1,077,683) 68,415 (5,311,167)
Total accumulated depreication (15,773,001) (1,844,646) 525,466 (17,092,181)
Total capital assets being depreciated, net 12,494,349 2,612,506 (6,214) 15,100,641
Governmental activities capital assets, net 26,543,013$ 14,834,218$ (3,123,216)$ 38,254,015$
Business-type activities:
Capital assets, not being depreciated:
Land 1,464,129 -$ -$ 1,464,129$
Construction in progress 10,069,438 22,059,691 (5,372,702) 26,756,427
Total capital assets, not being depreciated 11,533,567 22,059,691 (5,372,702) 28,220,556
Capital assets, being depreciated:
Buildings 41,324 - - 41,324
Improvements/infrastructure 39,384,221 5,996,355 - 45,380,576
Machinery and equipment 4,386,815 271,720 (16,738) 4,641,797
Total capital assets being depreciated 43,812,360 6,268,075 (16,738) 50,063,697
Less accumulated depreciation for:
Buildings (40,898) (122) - (41,020)
Improvements/infrastructure (11,502,861) (1,087,145) (12,590,006)
Machinery and equipment (2,034,594) (463,377) 16,738 (2,481,233)
Total accumulated depreication (13,578,353) (1,550,644) 16,738 (15,112,259)
Total capital assets being depreciated, net 30,234,007 4,717,431 - 34,951,438
Business-type activities capital assets, net 41,767,574$ 26,777,122$ (5,372,702)$ 63,171,994$
47
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 7 - Capital Assets (Continued):
Depreciation expense was charged to functions/programs as follows:
General government 580,100$
Public safety 718,040
Physical environment/transportation 187,398
Culture and recreation 359,108
Total depreciation expense - governmental activities 1,844,646$
Water 383,453
Sewer 770,122
Sanitation 307,725
Stormwater 89,344
Total depreciation expense - business-type activities 1,550,644$
Governmental activities:
Business-type activities
Note 8 - Long-Term Debt:
Bonds Payable
The City issues bonds to provide funds for the acquisition and construction of major capital
assets. Bonds have been issued for both governmental and business-type activities. The
original amount of revenue bonds issued in prior years is described below. Revenue bonds
outstanding at year end are as follows:
Governmental Activities
Interest Rates
and Dates Maturity Original Amount
Balance
September 30,
2008
Public Improvement 1.75 - 4.6%12/1/2003
Revenue Bonds,to
Series 2002 (6/1 & 12/1)12/1/2017 6,965,000$ 4,935,000$
Business-Type Activities
Water and Sewer Revenue 4.4 - 5.25%12/1/2004
and Refunding Bonds,to
Series 2000 (6/1 & 12/1)12/1/2030 17,935,000$ 17,065,000$
48
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 8 - Long-Term Debt (Continued):
Bonds Payable - (Continued)
Year ending September 30,Principal Interest Principal Interest
2009 440,000$ 202,806$ 410,000$ 892,688$
2010 455,000 187,406 430,000 873,725
2011 470,000 170,913 450,000 853,837
2012 490,000 152,700 470,000 832,363
2013 510,000 133,100 490,000 810,363
2014-2018 2,570,000 325,910 2,855,000 3,658,750
2019-2023 - - 3,675,000 2,834,563
2024-2028 - - 4,765,000 1,740,963
2029-2031 - - 3,520,000 384,848
Total 4,935,000$ 1,172,835$ 17,065,000$ 12,882,100$
Governmental Activities Business - Type Activities
Notes Payable
The City has notes payable for governmental activities only. During 2008, the City entered into
two new note payable agreements to finance the acquisition of additional property for Inland
Groves. Notes payable outstanding at year end are as follows:
Balance
Governmental Activities Original Amount
September 30,
2008
Inland Groves South Note, due to individual in
quarterly interest only payments of $52,500 (4%).
Final principal payment due on July 14, 2008. $ 5,250,000 $ -
Capital Improvement Notes, Series 1999 due to
SunTrust Bank in ten annual installments of $40,264
(including interest) beginning December 2000. The
notes bear an interest rate of 5.742%. The loan was
obtained to purchase a fire truck. 300,000 74,087
Inland Groves North Note, due to individual in
quarterly interest only payments of $57.828 (4%).
Final principal payment due on July 14, 2011. 6,000,000 5,782,778
Pool Property North Note, due to individual in
quarterly interest only payments of $90,000 (4%).
Final principal payment due on July 14, 2011. 2,250,000 -
Total $ 13,800,000 $ 5,856,865
49
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 8 - Long-Term Debt (Continued):
Notes Payable - (Continued)
Annual requirements to amortize outstanding notes payable for governmental activities as of
September 30, 2008 are as follows:
Year ending
September 30,Principal Interest
2009 36,010$ 234,531$
2010 38,077 232,404
2011 5,782,778 231,311
Total 5,856,865$ 698,246$
Governmental Activities
Changes in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2008 was as follows:
Beginning
Balance Additions Deductions Ending Balance
Due Within
One Year
Governmental activities
Bonds payable-
Revenue Bonds 5,360,000$ -$ (425,000)$ 4,935,000$ 440,000$
Notes payable-
Inland Groves South 5,250,000 - (5,250,000) - -
Revenue note, Series 1999 108,141 - (34,054) 74,087 36,010
Pool Property North - 2,250,000 (2,250,000) - -
Inland Groves North - 6,000,000 (217,222) 5,782,778 -
Total notes payable 5,358,141 8,250,000 (7,751,276) 5,856,865 36,010
Compensated Absences 426,373 101,531 - 527,904 52,790
Governmental activity long-
term liabilities 11,144,514$ 8,351,531$ (8,176,276)$ 11,319,769$ 528,800$
Business-type activities
Bonds payable-
Revenue Bonds 17,455,000 - (390,000) 17,065,000 410,000
Less deferred amount:
Issuance discount (500,527) - 38,566 (461,961) -
Total bonds payable 16,954,473 - (351,434) 16,603,039 410,000
Compensated Absences 169,720 99,554 - 269,274 26,927
Business-type activity long-
term liabilities 17,124,193$ 99,554$ (351,434)$ 16,872,313$ 436,927$
50
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 9 - Interfund Receivables, Payables and Transfers:
The composition of due to/from other funds at September 30, 2008 is as follows:
Receivable Fund Amount Payable Fund Amount
Capital Projects 995,568$ General Fund 995,568$
Capital Projects 3,491,433 Infrastructure 3,491,433
Water 7,599,616 Sewer 7,599,616
Stormwater 1,000,000 Sewer 1,000,000
13,086,617$ 13,086,617$
The above due to/from is to record the effect of the amount paid on 2000 series revenue bonds
by the water fund for the sewer fund, and to eliminate negative cash balances.
Interfund transfers for the year ended September 30, 2008 consisted of the following:
Transfer In
General Nonmajor
Transfers Out: Fund Governmental Total
General Fund $ - $ 243,338 $ 243,338
Infrastructure Special -
Revenue Fund - 4,907,519 4,907,519
Nonmajor governmental 19,381 800,923 820,304
Water fund 496,438 - 496,438
$ 515,819 $ 5,951,780 $ 6,467,599
Most of the transfers above are to cover debt service payments for the 2002 Public
Improvement Revenue Bonds and also to cover costs of various capital projects. The
transfer out of the Water Fund is to cover non-operating expenditures.
51
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 10 - Retirement Plans:
The City maintains three separate single-employer, defined benefit plans for general
employees, sworn police officers and firefighters, as well as a defined contribution plan for
general employees. The investment and administrative agent for the defined benefit plans is
the Florida Municipal Pension Trust Fund, an agent of the multiple-employer Public Employee
Retirement System. The assets of the defined contribution plan is administered by Met Life.
Defined Benefit Pension Plans - Each plan is independently governed by separate boards of
trustees. Assets may not be transferred between plans, or used for any purpose other than to
benefit each plan’s participants as defined in their authorizing ordinances. Each board
contracts with the Florida Municipal Pension Trust Fund (FMPTF), a private, not-for-profit
corporation established by the Florida League of Cities (FLC) for FLC members who wish to
use its services. The FMPTF acts as a common investment and administrative agent for its
members, contracting with a bank custodian, investment manager and actuary to provide a
commingled investment fund and plan valuation services. These plans are included as part of
the City’s reporting entity in Pension Trust Funds. The Clermont City Council adopted and
may amend plan provisions by resolution.
Stand-alone audited financial statements of the FMPTF are maintained on file at the FLC
offices in Tallahassee, Florida, and are available upon request to the Pension Services
Division.
Summary of Significant Accounting Policies
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 and refunds
are recognized when due and payable in accordance with the terms of each plan.
Method Used to Value Investments - Investments are reported at fair value. Short-term
investments are reported at 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. There are no investments that exceed 5% of the plan net assets.
Publicly available financial reports for each plan, that include detailed actuarial data, can be
obtained from the City’s Administrative Services Department.
52
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 10 - Retirement Plans (Continued):
Plan Descriptions and Contribution Information -
Membership of each of the defined benefit pension plans consisted of the following at
October 1, 2007, the date of the latest actuarial valuation:
General
Employees Police Officers Firefighters
Retirees and beneficiaries
currently receiving benefits 12 6 1
Terminated plan members entitled to,
but not yet receiving, benefits - 20 54
Active plan members - 49 43
Total 12 75 98
Plan Descriptions- The general employees defined benefit pension plan is for general
employees hired prior to September 30, 1985. The police officers’ and firefighters’ defined
benefit pension plans are both local law, single employer, defined benefit pension plans as
defined under Florida Statutes, Chapters 175 and 185, which covers all sworn police officers
and firefighters. Employees are eligible to participate in the plan immediately upon
employment with the City, and they are vested in the plan after ten years of service.
The normal retirement date for firefighters is the attainment of age 55 and 10 years of service,
or earlier attainment of age 52 and 25 years of service. The normal retirement date for police
officers is the attainment of age 55 and 10 years of service, or 20 years of service, regardless
of age. The normal retirement benefit is the number of years of credited service prior to
October 1, 2002 multiplied by 2.25%, and the number of years of credited service after
October 1, 2002 multiplied by 3%, and multiplied by the average final monthly compensation.
Early retirement is available after age 50 and 10 years of service; however, the early
retirement benefit is reduced by 2% for each year before the normal retirement date.
Contributions - The City’s actuarially determined contribution rate per the October 1, 2007
actuarial valuations is 0% for general employees, 22.99% for police officers and 19.66% for
firefighters. Police officers make a minimum mandatory contribution of 3% and firefighters
make a minimum mandatory contribution of 1%, in order to take advantage of the insurance
premium tax rebate provided for in the statutes. Administrative costs are deducted from the
net assets of the plan.
53
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 10 - Retirement Plans (Continued):
Annual Pension Cost and Net Pension Obligation - The City’s annual pension cost and net
pension obligation for the current year were as follows:
General Police
Employees Officers Firefighters
Annual Required Contribution (ARC) $ - $ 541,697 $ 410,350
Adjustment to ARC - - -
Annual Pension Cost $ - $ 541,697 $ 410,350
The City has always contributed the ARC and thus has never been required to report a net
pension obligation. Below is the required three-year trend information on annual pension cost.
Three-Year Trend Information
General Employees
Annual
Fiscal Year
Ending
Pension
Cost (APC)
Percentage of
APC Contributed
9/30/08 $ - 100%
9/30/07 19,697 100
9/30/06 19,697 100
Police Officers
9/30/08 $ 541,697 100%
9/30/07 376,518 100
9/30/06 291,677 100
Firefighters
9/30/08 $ 410,350 100%
9/30/07 199,989 100
9/30/06 189,164 100
54
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 10 - Retirement Plans (Continued):
Funded Status and Funding Progress – Pension Plans
The funded status of each plan as of October 1, 2007, the most recent actuarial valuation
date, is as follows:
Actuarial
Value of
Assets (a)
Actuarial
Acrued
Liability
(AAL) - Entry
Age (b)
Unfunded
AAL (UAAL)
(b - a)
Funded
Ratio
(a / b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b - a) / c)
General Employees 822,401$ 822,401$ -$ 100.0% -$ N/A
Police Officers 4,905,071 4,905,071 - 100.0% 2,356,375 0.0%
Fifefighters 1,972,299 1,972,299 - 100.0% 2,031,236 0.0%
The schedules of funding progress, presented as required supplementary information (RSI)
following the notes to the financial statements, present multiyear trend information about
whether the actuarial values of plan assets are increasing or decreasing over time relative to
the AALs for benefits.
The City uses the aggregate actuarial cost method to value its pension plans, which does
not identify or separately amortize unfunded actuarial liabilities. Information about the plan’s
funded status and funding progress has been prepared using the entry age actuarial cost
method for that purpose, and the information presented is intended to serve as a surrogate
for the funded status and funding progress of the plan.
Additional information as of the latest actuarial valuation follows:
General Employees Police Officers Firefighters
Valuation date 10/1/2007 10/1/2007 10/1/2007
Actuarial Cost Method Aggregate Cost Aggregate Cost Aggregate Cost
Amortization Method N/A N/A N/A
Remaining Amortization Period N/A N/A N/A
Asset Valuation Method Market Value Market Value Market Value
Actuarial Assumptions:
Investment rate of return 7.5% 7.5% 7.5%
Projected salary increases (including
inflation of 3.5%)0.0% 5.5% 5.5%
55
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 10 - Retirement Plans (Continued):
General Employee Defined Contribution Pension Plan - The defined Contribution
Pension Plan for General Employees of the City of Clermont was established October 1,
1985, as defined in Chapter 16, Article IV, of the Clermont Code, and is available to all
permanent general employees of the City, once they have completed one year of
employment. Employees are fully vested in the plan after ten years of service.
In a defined contribution plan, benefits depend solely on amounts contributed to the plan,
plus investment earnings. Contributions for, and interest forfeited by, employees who
terminate employment before five years of service are used to reduce the City’s current
period contributions.
Covered payroll for this Plan for fiscal year 2008 was $4,440,059; the City’s total payroll for
City employees was $9,699,959.
The City contributes annually to the pension account of each active participant an amount
equal to ten percent (10%) of the employee’s annual compensation. No contribution is
required by employees. The City of Clermont City Council adopted and may amend plan
provision by resolution.
The actual contribution made by the City for fiscal year 2008 was $444,309.
Note 11 - Post-Retirement Benefits:
Retired employees have the option of continuing the same type of health and dental
insurance coverage available to them while they were employed with the City. The cost of
the premiums is shared by the City and the retirees.
Note 12 - Risk Management:
During fiscal year 1990, the City established an internal service fund to account for its
uninsured risk of loss for employee medical and dental coverage. Under this program, the
fund provides coverage for the first $50,000 per year in medical, dental, or prescription
claims for each covered employee. The City purchases commercial insurance for claims in
excess of coverage provided by the fund with a total aggregate stop-loss of $2,000,000.
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.
56
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2008
Note 12 - Risk Management (Continued):
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.
2008 2007
Claims liabilities, beginning of year $ 272,165 $ 153,177
Incurred claims 2,138,680 1,714,624
Payments on claims (1,996,339) (1,595,636)
Claims liabilities, end of year $ 414,506 $ 272,165
Note 13 - Commitments and Contingencies:
Litigation - The City is engaged in various liability claims incidental to the conduct of its
general government operations at September 30, 2008. While the ultimate outcome of the
litigation cannot be determined at this time, management believes that any amounts not
covered by insurance, if any, resulting from these lawsuits would not materially affect the
financial position of the City.
Risk Management - The City is exposed to various risks of loss related to torts; theft of,
damage to and destruction of assets; errors and omissions; and natural disasters for which
the City carries commercial insurance. The City has obtained excess insurance coverage
with varying retentions and limits to further limit exposure to large losses. There have been
no significant reductions in insurance coverage from the prior year and settlements have not
exceeded insurance coverage during the past three years.
57
58
REQUIRED SUPPLEMENTAL INFORMATION
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2008
Schedules of Funding Progress
Actuarial Valuation Date
Actuarial
Value of
Assets
(a)
Actuarial
Acrued
Liability
(AAL) - Entry
Age (b)
Unfunded
AAL
(UAAL)
(b - a)
Funded
Ratio
(a / b)
Covered
Payroll
(c)
General Employees
10/1/2002 852,955 852,955 - 100.0% -
10/1/2003 863,029 863,029 - 100.0% -
10/1/2004 863,278 863,278 - 100.0% -
10/1/2005 816,972 816,972 - 100.0% -
10/1/2006 794,277 794,277 - 100.0% -
10/1/2007 822,401 822,401 - 100.0% -
Police Officers
10/1/2001 2,392,277 2,392,277 - 100.0% 714,709
10/1/2002 3,268,335 2,368,335 - 100.0% 1,042,972
10/1/2003 2,762,688 2,762,688 - 100.0% 1,279,696
10/1/2004 3,032,203 3,032,203 - 100.0% 1,424,568
10/1/2005 3,571,295 3,571,295 - 100.0% 1,534,254
10/1/2007 4,905,071 4,905,071 - 100.0% 2,356,375
Fire Fighters
10/1/2002 861,722 861,722 - 100.0% 512,906
10/1/2003 814,097 814,097 - 100.0% 597,364
10/1/2004 974,966 974,966 - 100.0% 901,980
10/1/2005 1,256,347 1,256,347 - 100.0% 1,047,097
10/1/2006 1,345,093 1,345,093 - 100.0% 1,257,860
10/1/2007 1,972,299 1,972,299 - 100.0% 2,031,230
59
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2008
Schedules of Employer Contributions
Year Ended
9/30
Annual Required
Contribution
Percentage
Contributed
Annual Required
Contribution
Percentage
Contributed
Annual Required
Contribution
Percentage
Contributed
2003 7,897$ 100% 179,838$ 100% 83,472$ 100%
2004 5,454 100% 249,332 100% 103,481 100%
2005 7,897 100% 277,060 100% 160,454 100%
2006 19,697 100% 291,677 100% 189,164 100%
2007 19,697 100% 376,518 100% 199,989 100%
2008 - 100% 541,697 100% 410,350 100%
General Employees Police Officers Firefighters
Employer Contributions
60
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
OTHER GOVERNMENTAL FUNDS
Special Revenue Funds
Recreation Impact Fees Fund This fund was established to account for recreation
impact fees collected from new developments
constructed in the City.
Police Impact Fees Fund This fund was established to account for police
impact fees collected from new developments
constructed in the City.
Fire Impact Fees Fund This fund was established to account for fire impact
fees collected from new developments constructed in
the City.
Building Services Fund This fund was established to account for the
operations of the City’s building and other permits
department.
Debt Service Fund
Debt Service Fund This fund was established to account for the
accumulation of resources and payment of bond
principal and interest from governmental resources.
Capital Projects Fund
Capital Projects Fund This fund was established to account for the
acquisition of capital assets or construction of major
capital projects not being financed by proprietary
funds.
Permanent Fund
Cemetery Perpetual Care Fund This fund is used to account for monies provided by
people buying lots in the City cemetery. The
principal must be kept separate and apart from all
other funds, but the interest may be transferred to the
General Fund to defray the cost of cemetery
operation and maintenance.
61
Special Revenue
Recreation
Impact Fees
Police Impact
Fees
Fire Impact
Fees
Building
Services
Special
Revenue
Total
Assets:
Cash and cash equivalents 574,379$ 2,019,960$ 139,784$ 75,386$ 2,809,509$
Due from other funds - - - - -
Total assets 574,379$ 2,019,960$ 139,784$ 75,386$ 2,809,509$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 98$ -$ -$ 45,985$ 46,083$
Total liabilities 98 - - 45,985 46,083
Fund balances:
Reserved for:
Debt service - - - - -
Ptl
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
September 30, 2008
Perpetual care - - - - -
Unreserved 574,281 2,019,960 139,784 29,401 2,763,426
Total fund balances 574,281 2,019,960 139,784 29,401 2,763,426
Total liabilities and
fund balances 574,379$ 2,019,960$ 139,784$ 75,386$ 2,809,509$
62
Debt Service Capital Projects
Permanent Fund -
Cemetery
Perpetual Care
Total Nonmajor
Governmental
Funds
360,936$ 126,821$ 643,245$ 3,940,511$
- 4,487,001 - 4,487,001
360,936$ 4,613,822$ 643,245$ 8,427,512$
-$ 117,647$ -$ 163,730$
- 117,647 - 163,730
360,936 - - 360,936
643 245 643 245- - 643,245 643,245
- 4,496,175 - 7,259,601
360,936 4,496,175 643,245 8,263,782
360,936$ 4,613,822$ 643,245$ 8,427,512$
63
Special Revenue
Recreation
Impact Fees
Police Impact
Fees
Fire Impact
Fees
Building
Services
Special Revenue
Total
Revenues:
Licenses and permits -$ -$ -$ 561,543$ 561,543$
Intergovernmental - - - - -
Charges for services - - - 87,240 87,240
Impact fees/special assessments 656,908 340,442 212,010 - 1,209,360
Investment earnings 67,323 56,540 12,705 77 136,645
Miscellaneous - - - - -
Total revenues 724,231 396,982 224,715 648,860 1,994,788
Expenditures:
Current:
General government - - - 619,459 619,459
Public safety - 497,144 467,644 - 964,788
Culture and recreation 19,862 - - - 19,862
Debt Service
Principal 1,935,787 - 34,054 - 1,969,841
Interest and other charges 208,321 - 5,320 - 213,641
Capital Outlay:-
Public safety - - - - -
Culture and recreation - - - - -
Total expenditures 2,163,970 497,144 507,018 619,459 3,787,591
Excess (Deficiency) of Revenues (1,439,739) (100,162) (282,303) 29,401 (1,792,803)
Over Expenditures
Other Financing Sources (Uses):
Transfers in 12,645 - - - 12,645
Transfers out (500,000) - (300,923) - (800,923)
Total other financing sources (uses) (487,355) - (300,923) - (788,278)
Net Change in Fund Balances (1,927,094) (100,162) (583,226) 29,401 (2,581,081)
Fund Balances - Beginning 2,501,375 2,120,122 723,010 - 5,344,507
Fund Balances - Ending 574,281$ 2,019,960$ 139,784$ 29,401$ 2,763,426$
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
OTHER GOVERNMENTAL FUNDS
For the Year Ended September 30, 2008
AND CHANGES IN FUND BALANCES
64
Debt Service Capital Projects
Permanent Fund -
Cemetery Perpetual
Care
Total Nonmajor
Governmental
Funds
-$ -$ -$ 561,543$
- 150,000 - 150,000
- - - 87,240
- - - 1,209,360
9,756 13,469 19,381 179,251
- 90,000 63,730 153,730
9,756 253,469 83,111 2,341,124
- - - 619,459
- - - 964,788
- - - 19,862
425,000 - - 2,394,841
210,056 - - 423,697
- 1,371,050 - 1,371,050
- 538,066 - 538,066
635,056 1,909,116 - 6,331,763
(625,300) (1,655,647) 83,111 (3,990,639)
630,766 5,308,369 - 5,951,780
- - (19,381) (820,304)
630,766 5,308,369 (19,381) 5,131,476
5,466 3,652,722 63,730 1,140,837
355,470 843,453 579,515 7,122,945
360,936$ 4,496,175$ 643,245$ 8,263,782$
65
CITY OF CLERMONT, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Impact fees/special assessments 820,000$ 820,000$ 656,908$ (163,092)$
Investment earnings 59,000 59,000 67,323 8,323
Total revenues 879,000 879,000 724,231 (154,769)
Expenditures:
Current:
Culture and recreation 25,000 25,000 19,862 5,138
Debt Service:
Principal 470,000 1,910,000 1,935,787 (25,787)
Interest and other charges - 234,107 208,321 25,786
Total expenditures 495,000 2,169,107 2,163,970 5,137
Excess (Deficiency) of Revenues
Over Expenditures 384,000 (1,290,107) (1,439,739) (149,632)
Other Financing Sources (Uses)
Transfers in - - 12,645 12,645
Transfers out (500,000) (500,000) (500,000) -
Total other financing sources (uses) (500,000) (500,000) (487,355) 12,645
Net Change in Fund Balances (116,000) (1,790,107) (1,927,094) (136,987)
Fund Balances - Beginning 2,501,375 2,501,375 2,501,375 -
Fund Balances - Ending 2,385,375$ 711,268$ 574,281$ (136,987)$
RECREATION IMPACT FEE SPECIAL REVENUE FUND
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
66
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Impact fees/special assessments 250,000$ 250,000$ 340,442$ 90,442$
Investment earnings 90,000 90,000 56,540 (33,460)
Total revenues 340,000 340,000 396,982 56,982
Expenditures:
Current:
Public Safety:
Law enforcement 636,135 1,014,532 497,144 517,388
Total expenditures 636,135 1,014,532 497,144 517,388
Excess (Deficiency) of Revenues
Over Expenditures (296,135) (674,532) (100,162) 574,370
Net Change in Fund Balances (296,135) (674,532) (100,162) 574,370
Fund Balances - Beginning 2,120,122 2,120,122 2,120,122 -
Fund Balances - Ending 1,823,987$ 1,445,590$ 2,019,960$ 574,370$
POLICE IMPACT FEE SPECIAL REVENUE FUND
CITY OF CLERMONT, FLORIDA
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
67
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Impact fees/special assessments 150,000$ 150,000$ 212,010$ 62,010$
Investment earnings 9,500 9,500 12,705 3,205
Total revenues 159,500 159,500 224,715 65,215
Expenditures:
Current:
Public safety:
Fire control 5,910 496,012 467,644 28,368
Debt Service:
Principal retirement 34,055 34,055 34,054 1
Interest and fiscal charges 5,235 5,235 5,320 (85)
Total expenditures 45,200 535,302 507,018 28,284
Excess (Deficiency) of Revenues
Over Expenditures 114,300 (375,802) (282,303) 93,499
Other Financing Sources (Uses):
Transfers out (302,485) (302,485) (300,923) 1,562
Total other financing sources (uses) (302,485) (302,485) (300,923) 1,562
Net Change in Fund Balances (188,185) (678,287) (583,226) 95,061
Fund Balances - Beginning 723,010 723,010 723,010 -
Fund Balances - Ending 534,825$ 44,723$ 139,784$ 95,061$
CITY OF CLERMONT, FLORIDA
FIRE IMPACT FEE SPECIAL REVENUE FUND
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
68
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Licenses and permits -$ 561,500$ 561,543$ 43$
Charges for services - 65,200 87,240 22,040
Investment earnings - - 77 77
Total revenues - 626,700 648,860 22,160
Expenditures:
Current:
General government - 626,700 619,459 7,241
Total expenditures - 626,700 619,459 7,241
Excess (Deficiency) of Revenues
Over Expenditures - - 29,401 29,401
Net Change in Fund Balances - - 29,401 29,401
Fund Balances - Beginning - - - -
Fund Balances - Ending -$ -$ 29,401$ 29,401$
CITY OF CLERMONT, FLORIDA
BUILDING SERVICES SPECIAL REVENUE FUND
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
69
CITY OF CLERMONT, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
Original Final
Revenues:
Investment earnings 9,000$ 9,000$ 9,756$ 756$
Total revenues 9,000 9,000 9,756 756
Expenditures:
Debt Service:
Principal 425,000 425,000 425,000 -
Interest and fiscal charges 210,057 210,057 210,056 1
Total expenditures 635,057 635,057 635,056 1
Excess (Deficiency) of Revenues
Over Expenditures (626,057) (626,057) (625,300) 757
Other Financing Sources (Uses):
Transfers in 640,530 640,530 630,766 (9,764)
Total other financing sources (uses) 640,530 640,530 630,766 (9,764)
Net Change in Fund Balances 14,473 14,473 5,466 (9,007)
Fund Balances - Beginning 355,470 355,470 355,470 -
Fund Balances - Ending 369,943$ 369,943$ 360,936$ (9,007)$
DEBT SERVICE FUND
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
70
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENDTURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Intergovernmental revenues 1,000,000$ 1,000,000$ 150,000$ (850,000)$
Investment earnings 31,000 31,000 13,469 (17,531)
Miscellaneous - 100,000 90,000 (10,000)
Total revenues 1,031,000 1,131,000 253,469 (877,531)
Expenditures:
Capital outlay:
Public safety 3,320,000 3,320,000 1,371,050 1,948,950
Culture and recreation 825,000 925,000 538,066 386,934
Total expenditures 4,145,000 4,245,000 1,909,116 2,335,884
Excess (Deficiency) of Revenues
Over Expenditures (3,114,000) (3,114,000) (1,655,647) 1,458,353
Other Financing Sources (Uses):
Transfers in 7,345,000 7,375,000 5,308,369 (2,066,631)
Total other financing sources (uses) 7,345,000 7,375,000 5,308,369 (2,066,631)
Net Change in Fund Balances 4,231,000 4,261,000 3,652,722 (608,278)
Fund Balances - Beginning 843,453 843,453 843,453 -
Fund Balances - Ending 5,074,453$ 5,104,453$ 4,496,175$ (608,278)$
CAPITAL PROJECTS FUND
Year Ended September 30, 2008
The accompanying Notes to Financial Statements are an integral part of this statement.
71
FIDUCIARY FUNDS
Pension Trust Funds
General Employees’ Pension Trust Fund This fund is used to account for the accumulation of
resources to be used for retirement annuity payments at
the appropriate amounts and times in the future.
Resources are contributed at rates in accordance with
an actuarial study, whereas, a fixed percentage of
employees salaries is used in determining the annual
contribution to the defined contribution plan.
Police Officers’ Pension Trust Fund This fund is used to account for the accumulation of
resources to be used for the retirement annuities of all
police officers. The state contributes an amount
determined by an actuarial study.
Firefighters’ Pension Trust Fund This fund is used to account for the accumulation of
resources to be used for the retirement annuities of all
firefighters. The state contributes money based upon the
number of firefighters and the City contributes an amount
determined by an actuarial study.
72
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2008
Police
Officers Firefighters Total
Defined Defined Pension Pension Employee
Benefit Contribution Trust Trust Pension Funds
Assets:
Cash and cash equivalents 18,099$ $ - 143,696$ 69,677$ $ 231,472
Receivables:
Employer contribution receivable - 21,761 - - 21,761
Due from other governments - - - 48,391 48,391
Total receivables - 21,761 - 48,391 70,152
Investments:
U.S. Government & other debt securities 277,049 - 2,199,582 1,066,557 3,543,188
Equities 351,257 3,258,740 2,788,738 1,352,234 7,750,969
Total Investments 628,306 3,258,740 4,988,320 2,418,791 11,294,157
Total assets 646,405 3,280,501 5,132,016 2,536,859 11,595,781
Liabilities:
Accounts payable - - - - -
Total liabilities - - - - -
Net Assets Held in Trust
for Pension Benefits 646,405$ 3,280,501$ 5,132,016$ 2,536,859$ 11,595,781$
General Employees
73
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Year Ended September 30, 2008
Police
Officers Firefighters Total
Defined Defined Pension Pension Employee
Benefit Contribution Trust Trust Pension Funds
Additions:
Contributions:
Employer 11,898$ 547,182$ 420,052$ 337,131$ 1,316,263$
Plan members - - 68,663 37,702 106,365
State - - 218,263 245,827 464,090
Total contributions 11,898 547,182 706,978 620,660 1,886,718
Investment earnings:
Net increase (decrease) in fair value of investments (95,689) (403,649) (684,471) (317,772) (1,501,581)
Total net investment earnings (loss) (95,689) (403,649) (684,471) (317,772) (1,501,581)
Total additions (83,791) 143,533 22,507 302,888 385,137
Deductions:
Benefits/distributions 75,537 30,825 135,868 2,029 244,259
Administrative expenses 4,770 12,332 20,030 13,254 50,386
Total deductions 80,307 43,157 155,898 15,283 294,645
Change in Net Assets (164,098) 100,376 (133,391) 287,605 90,492
Net Assets Held in Trust
for Pension Benefits:
Beginning of Year 810,503 3,180,125 5,265,407 2,249,254 11,505,289
End of Year 646,405$ 3,280,501$ 5,132,016$ 2,536,859$ 11,595,781$
General Employees
74
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL FUNDS
Improvements/ Machinery/
Land Buildings Infrastructure Equipment Total
General government 170,116$ 5,592,288$ 1,580,752$ 1,750,270$ 9,093,426$
Public safety 885,513 3,090,307 - 5,887,871 9,863,691
Physical environment/
transportation 119,494 728,159 5,399,593 777,239 7,024,485
Culture & recreation 20,288,186 499,779 5,938,653 667,671 27,394,289
Older assets not
maintained by function 189,500 14,780 265,460 - 469,740
Total 21,652,809$ 9,925,313$ 13,184,458$ 9,083,051$ 53,845,631$
Deletions
Balance and Balance
09/30/07 Additions Transfers 09/30/08
General government 8,989,485$ 103,941$ -$ 9,093,426$
Public safety 7,017,199 2,921,121 74,629 9,863,691
Physical environment/
transportation 5,220,258 1,804,227 - 7,024,485
Culture & recreation 19,514,666 8,336,674 457,051 27,394,289
Older assets not
maintained by function 469,740 - - 469,740
Total 41,211,348$ 13,165,963$ 531,680$ 53,845,631$
CITY OF CLERMONT, FLORIDA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
For The Year Ended September 30, 2008
SCHEDULE BY FUNCTION AND ACTIVITY
75
76
STATISTICAL SECTION
Statistical Section
This part of the City of Clermont’s comprehensive annual 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
government’s overall health.
Contents Page
Financial Trends 78
These schedules contain trend information to help the reader understand
how the government’s financial performance and well-being have
changed over time.
Revenue Capacity 86
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property tax.
Debt Capacity 91
These schedules present information to help the reader assess the
affordability of the government’s current levels of outstanding debt and
the government’s ability to issue additional debt in the future.
There are no limitations placed upon the amount of debt the City of
Clermont may issue by either the City Charter or the City’s Code of
Ordinances or by Florida Statutes.
The City of Clermont has no general obligation bonds outstanding.
Demographic and Economic Information 96
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government’s
financial activities take place.
Operating Information 100
These schedules contain service and infrastructure data to help the
reader understand how the information in the government’s financial
report relates to the services the government provides and the activities it
performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual reports for the relevant year.
77
1999 2000 2001 2002
Governmental activities
Invested in capital assets, net of related debt ****
Restricted ****
Unrestricted ****
Total governmental activities net assets ****
Business-type activities
Invested in capital assets, net of related debt ****
Restricted ****
Unrestricted ****
Total business-type activities net assets ****
Primary government
Invested in capital assets, net of related debt ****
Restricted ****
Unrestricted ****
Total primary government net assets ****
* Data not available prior to the implementation of GASB Statement 34.
Fiscal Year
City of Clermont, Florida
Net Assets by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
78
2003 2004 2005 2006 2007 2008
* 10,959$ 12,118$ 15,777$ 15,825$ 27,462$
* 3,121 4,800 5,935 7,830 8,959
* 5,619 8,125 8,693 14,459 11,946
* 19,699$ 25,043$ 30,405$ 38,114$ 48,367$
* 12,054$ 12,082$ 15,864$ 24,837$ 46,569$
* 22,601 27,573 33,732 36,931 13,899
* 9,903 13,414 13,447 10,841 18,103
* 44,558$ 53,069$ 63,043$ 72,609$ 78,571$
* 23,013$ 24,200$ 31,641$ 40,662$ 74,031$
* 25,722 32,373 39,667 44,761 22,858
* 15,522 21,539 22,140 25,300 30,049
* 64,257$ 78,112$ 93,448$ 110,723$ 126,938$
Fiscal Year
79
Expenses 2004 2005 2006 2007 2008
Governmental activities:
General government 2,337$ 2,617$ 3,232$ 3,297$ 4,204$
Public safety 4,688 5,773 7,109 8,783 10,330
Physical environment 421 278 382 470 514
Transportation/public works 1,056 1,172 1,322 1,255 1,544
Economic environment 32 13 181 52 48
Human services 132 149 77 130 107
Culture and recreation 1,742 1,816 1,851 2,441 2,061
Interest on long-term debt 350 255 285 226 459
Total governmental activities expenses 10,758 12,073 14,439 16,654 19,267
Business-type activities:
Water 2,707 3,015 3,427 2,987 3,737
Sewer 3,423 3,572 4,024 3,896 4,521
Sanitation 1,617 1,817 1,731 1,816 2,123
Stormwater 266 287 316 427 549
Total business-type activities expenses 8,013 8,691 9,498 9,126 10,930
Total primary government expenses 18,771$ 20,764$ 23,937$ 25,780$ 30,197$
Program Revenues
Governmental activities:
Charges for services:
General government $963 $1,042 $1,037 $1,116 1,582$
Public safety 807 912 1,158 1,105 975
Transportation/public works 250 36 - - -
Culture and recreation 1,009 463 1,566 882 761
Operating grants and contributions 591 512 523 923 1,047
Capital grants and contributions - 1,644 105 2,518 7,330
Total governmental activities
program revenues 3,620 4,609 4,389 6,544 11,695
Business-type activities:
Charges for services:
Water 4,342$ 4,320$ 4,839$ 5,502$ 5,654$
Sewer 2,832 3,295 3,784 4,242 4,422
Sanitation 1,811 2,088 2,236 2,402 2,515
Stormwater 571 627 689 729 766
Operating grants and contributions 105 138 11 38 70
Capital grants and contributions 7,095 6,287 6,408 3,676 1,480
Total business-type activities
program revenues 16,756 16,755 17,967 16,589 14,907
Total primary government program revenues 20,376$ 21,364$ 22,356$ 23,133$ 26,602$
* Fiscal Years 1999 through 2003 - information not available prior to implementation of GASB Statement 34.
Changes in Net Assets
City of Clermont, Florida
Fiscal Year
(amounts expressed in thousands)
(accrual basis of accounting)
Last Five Fiscal Years*
80
Changes in Net Assets
City of Clermont, Florida
(amounts expressed in thousands)
(accrual basis of accounting)
Last Five Fiscal Years*
2004 2005 2006 2007 2008
Net (expense)/revenue
Governmental activities (7,138)$ (7,464)$ (10,050)$ (10,110)$ (7,572)$
Business-type activities 8,743 8,064 8,469 7,463 4,605
Total primary government net expense 1,605$ 600$ (1,581)$ (2,647)$ (2,967)$
General Revenues and Other Changes
in Net Assets
Governmental activities:
Taxes
Property taxes 3,371$ 4,417$ 5,665$ 7,452$ 7,749$
Franchise fees 1,128 1,357 1,714 1,808 1,911.00
Utility taxes 1,382 1,552 1,782 1,881 1,992.00
Unrestricted intergovernmental revenues 3,279 3,923 4,953 4,952 4,776.00
Unrestricted investment earnings
and miscellaneous revenues 186 1,181 835 1,216 901.00
Transfers 385 377 464 509 496.00
Total governmental activities 9,731 12,807 15,413 17,818 17,825
Business-type activities:
Investment earnings 390 825 1,968 2,612 1,853$
Transfers (385) (377) (464) (509) (496)
Total business-type activities 5 448 1,504 2,103 1,357
Total primary government 9,736$ 13,255$ 16,917$ 19,921$ 19,182$
Change in Net Assets
Governmental activities 2,593$ 5,343$ 5,363$ 7,708$ 10,253$
Business-type activities 8,748 8,512 9,973 9,566 5,961
Total primary government 11,341$ 13,855$ 15,336$ 17,274$ 16,214$
* Fiscal Years 1999 through 2003 - information not available prior to implementation of GASB Statement 34.
Fiscal Year
81
1999 2000 2001 2002
General fund
Reserved 43$ 54$ 97$ 162$
Unreserved 736 1,407 2,120 2,559
Total general fund 779$ 1,461$ 2,217$ 2,721$
All other governmental funds
Reserved 393$ 409$ 430$ 512$
Unreserved, reported in:
Special revenue funds 458 1,291 793 1,003
Capital projects fund - 1,088 669 4,423
Total all other governmental funds 851$ 2,788$ 1,892$ 5,938$
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
82
2003 2004 2005 2006 2007 2008
167$ 168$ 198$ 233$ 307$ 209$
3,110 4,207 5,758 4,857 9,128 9,572
3,277$ 4,375$ 5,956$ 5,090$ 9,435$ 9,781$
760$ 894$ 1,083$ 1,189$ 1,539$ 1,912$
2,318 3,410 5,028 7,767 10,771 5,314
106 - 926 780 843 4,496
3,184$ 4,304$ 7,037$ 9,736$ 13,153$ 11,722$
Fiscal Year
83
1999 2000 2001 2002
Revenues
Taxes 3,184$ 3,939$ 4,931$ 5,752$
Licenses and permits 150 189 211 253
Intergovernmental revenue 872 960 930 1,408
Charges for services 44 60 37 367
Fines and forfeitures 109 174 146 112
Impact fees/special assessments 240 996 945 1,314
Investment income 88 151 243 141
Miscellaneous 71 261 212 177
Total revenues 4,758 6,730 7,655 9,524
Expenditures
General government 737 808 874 1,117
Public Safety 1,551 1,868 2,247 3,118
Physical environment 114 134 197 42
Transportation 376 404 454 622
Economic environment 7 24 27 44
Human services 26 25 20 58
Culture and recreation 735 876 1,011 1,162
Capital outlay 1,231 2,417 2,882 3,205
Debt service
Principal 185 200 257 396
Interest 68 54 99 92
Other charges - - 1 211
Total expenditures 5,030 6,810 8,069 10,067
Excess of revenues
over (under) expenditures (272) (80) (414) (543)
Other financing sources (uses)
Transfers in 536 1,328 551 1,468
Transfers out (385) (1,037) (302) (1,378)
Debt issuance 397 2,390 - 6,965
Sale of capital assets - - - -
Payments to refunded bond escrow agent - - - (2,000)
Total other financing sources (uses) 548 2,681 249 5,055
Net change in fund balances 276$ 2,601$ (165)$ 4,512$
Debt service as a percentage of noncapital
expenditures 6.7% 5.8% 6.9% 10.2%
Changes in Fund Balances of Governmental Funds
City of Clermont, Florida
Fiscal Year
(amounts expressed in thousands)
(modified accrual basis of accounting)
Last Ten Fiscal Years
84
2003 2004 2005 2006 2007 2008
6,794$ 6,791$ 8,391$ 10,327$ 11,141$ 11,652$
277 467 484 456 491 835
1,152 2,758 5,216 4,211 8,340 11,977
378 381 389 407 462 643
114 125 164 226 175 321
1,424 1,592 1,152 2,444 1,717 1,209
145 107 267 738 1,101 687
219 541 310 505 391 1,683
10,503 12,762 16,373 19,314 23,818 29,007
1,338 1,432 2,053 2,694 3,079 3,640
3,606 4,274 5,285 6,452 9,141 10,999
35 278 318 343 461 497
806 1,055 917 967 1,189 2,976
39 32 33 38 48 48
89 122 139 75 129 105
1,316 1,009 1,025 1,259 1,556 10,024
5,351 2,752 2,484 10,235 94 1,909
236 507 855 868 449 8,176
257 268 258 244 440 465
- - - - - -
13,073 11,729 13,367 23,175 16,586 38,839
(2,570) 1,033 3,006 (3,861) 7,232 (9,832)
1,182 1,217 1,081 1,676 1,265 6,468
(863) (832) (704) (1,212) (756) (5,971)
27 800 - 5,250 - 8,250
- - 931 - - -
- - - - - -
346 1,185 1,308 5,714 509 8,747
(2,224)$ 2,218$ 4,314$ 1,853$ 7,741$ (1,085)$
6.4% 8.6% 10.2% 9.3% 7.1% 37.0%
Fiscal Year
85
Fiscal Property Franchise Utility
Year Tax Fees Tax Total
1999 838 560 1,027 2,425
2000 1,205 654 1,248 3,107
2001 1,594 806 1,552 3,952
2002 2,038 806 1,855 4,699
2003 2,592 922 1,981 5,495
2004 3,305 1,128 2,292 6,725
2005 4,321 1,357 2,617 8,295
2006 5,488 1,714 2,948 10,150
2007 7,155 1,808 3,138 12,101
2008 7,749 1,911 1,992 11,652
Fiscal Sales State Revenue Local Option
Year Tax Sharing Gas Tax Total
1999 336 151 199 686
2000 381 169 206 756
2001 416 187 213 816
2002 464 192 226 882
2003 541 207 243 991
2004 781 242 268 1,291
2005 930 328 275 1,533
2006 1,157 368 286 1,811
2007 1,210 388 325 1,923
2008 1,139 356 300 1,795
Taxes Included in Unrestricted Intergovernmental Revenues
City of Clermont, Florida
Governmental Activities Tax Revenues by Source
(amounts expressed in thousands)
Last Ten Fiscal Years
(accrual basis of accounting)
86
Fiscal Total Estimated Assessed
Year Less: Total Taxable Direct Actual Value as a
Ended Real* Personal Tax Exempt Assessed Tax Taxable Percentage of
Sep 30 Property Property Real Property Value Rate Value Actual Value
1999 317,940 55,962 82,258 291,644 2.979 373,902 78.00%
2000 384,836 60,922 88,777 356,981 3.479 445,758 80.08%
2001 491,701 64,111 105,297 450,515 3.729 555,812 81.06%
2002 626,840 72,610 128,222 571,228 3.729 699,450 81.67%
2003 793,583 92,764 166,209 720,138 3.729 886,347 81.25%
2004 1,041,341 112,546 238,373 915,514 3.729 1,153,887 79.34%
2005 1,363,931 133,687 299,162 1,198,456 3.729 1,497,618 80.02%
2006 1,771,503 153,086 382,885 1,541,704 3.729 1,924,589 80.11%
2007 2,466,549 171,470 620,750 2,017,269 3.142 2,638,019 76.47%
2008 2,975,139 186,835 676,311 2,485,663 3.142 3,161,974 78.61%
Source: Lake County Property Appraisers Office
* Information on breakdown of residential and commercial property is not available.
City of Clermont, Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
87
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 Authority District Rates
1999 2.9790 4.7330 0.0000 0.2680 9.1900 2.0000 0.3840 0.4820 20.0360
2000 3.4790 4.7330 0.0000 0.3160 8.7420 1.0000 0.5000 0.4820 19.2520
2001 3.7290 5.1170 0.0000 0.5500 8.4950 1.0000 0.5000 0.4720 19.8630
2002 3.7290 5.1170 0.0000 0.5289 8.2020 1.0000 0.5000 0.4620 19.5389
2003 3.7290 5.9170 0.0000 0.5289 8.3950 1.0000 0.4819 0.4620 20.5138
2004 3.7290 5.9170 0.0000 0.5289 8.4400 1.0000 0.4080 0.4620 20.4849
2005 3.7290 5.8170 0.0000 0.5289 7.9900 1.0000 0.3831 0.4620 19.9100
2006 3.7290 5.7970 0.0000 0.5289 7.9810 1.0000 0.3370 0.4620 19.8349
2007 3.1420 4.7410 0.2000 0.4651 7.6980 0.8666 0.2130 0.4158 17.7415
2008 3.1420 4.6511 0.1101 0.4651 7.5170 0.8666 0.2130 0.4158 17.3807
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.
Lake County
Overlapping Rates
City of Clermont, Florida
Property Tax Rates
Direct and Overlapping1 Governments
Last Ten Fiscal Years2
(per $1,000 of assessed value)
88
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
John P. Adams & Ann D. 34,051$ 1 1.69%
Adams Family LP
Fountains at Clermont LLC 21,400 2
South Lake Hospital, Inc. 21,059 3 1.04% 5,115 3 2.07%
Lennar Homes, Inc. 18,206 4 0.90% 6,888$ 2 2.78%
Citrus Tower Development 17,822 5
Sundance Clermont LLC 16,349 6 0.81%
Village at East Lake 12,780 7
Lowe's 12,699 8 0.63%
Wal-Mart Stores East LP 12,511 9 0.62%
Lost Lake Reserve LC 11,616 10 0.58%
CPF Property Investments, Inc. 8,144 1 3.29%
Hurtak, Family Partnership Ltd. 5,087 4 2.06%
Health Care Reit, Inc. 4,135 5 1.67%
Mercator Properties, Inc. 3,865 6 1.56%
Lakeworth MHP, LTD 3,122 7 1.26%
Lake Highlands Assoc, Inc. 2,966 8 1.20%
Grand View Garden Homes, LC 2,218 9 0.90%
Indian Shores Development 1,693 10 0.68%
TOTAL 178,493$ 8.85% 43,233$ 17.47%
Source: Lake County Property Appraiser
2008 1999
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Ten Years Ago
(amounts expressed in thousands)
89
Fiscal
Year Total Tax Collections in
Ended Levy for Percentage Subsequent Percentage
September Fiscal Year Amount of Levy Years Amount of Levy
1999 869 836 96.2% 2 838 96.4%
2000 1,242 1,201 96.7% 4 1,205 97.0%
2001 1,680 1,607 95.7% 14 1,621 96.5%
2002 2,130 2,054 96.4% 10 2,064 96.9%
2003 2,685 2,586 96.3% 9 2,595 96.6%
2004 3,414 3,293 96.5% 10 3,303 96.8%
2005 4,469 4,310 96.4% 5 4,315 96.6%
2006 5,749 5,544 96.4% - 5,544 96.4%
2007 7,518 7,155 95.2% 17 7,155 95.2%
2008 7,749 7,425 95.8% 15 7,425 95.8%
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.
Fiscal Year of the Levy
City of Clermont, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Total Collections to Date
Collected within the
90
Business-Type
Fiscal Activities
Year Water & Sewer Total Percentage
Ended Revenue Notes Line of Refunding Primary of Personal
Sept Bonds Payable Credit Revenue Bonds Government Income Per Capita
1
1999 765 424 - 10,960 $12,149 * 1,371
2000 565 744 2,000 10,780 $14,089 6.87% 1,490
2001 355 630 2,000 17,935 $20,920 * 1,979
2002 6,965 459 - 17,935 $25,359 * 1,849
2003 6,965 381 - 17,935 $25,281 * 1,643
2004 6,575 1,064 - 17,935 $25,574 * 1,449
2005 6,180 605 - 17,835 $24,620 * 1,230
2006 5,775 5,392 - 17,685 $28,852 5.66% 1,312
2007 5,360 5,358 - 17,455 $28,173 5.63% 1,231
2008 4,935 5,857 - 17,065 $27,857 4.00% 1,187
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 See the Schedule of Demographic and Economic Statistics on page 85 for personal income and population data.
* Information is not available.
Governmental Activities
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
91
Percentage Amount
Total Applicable to Applicable to
Outstanding City of Clermont City of Clermont
Direct:
City of Clermont 10,792$ 100% 10,792$
Overlapping:
Lake County 32,310 11% 3,554
Total direct and overlapping debt
payable from ad valorem taxes 43,102$ 14,346$
Estimated Population 23,476
Total direct and overlapping debt per capita 611.10$
Note: The City of Clermont has no legal debt margin.
Sources: Lake County Clerk Finance Office
Lake County Property Appraiser's Office
(amounts expressed in thousands, except population and per capita amount)
City of Clermont, Florida
Direct and Overlapping Governmental Activities Debt
September 30, 2008
92
Public Communications Total Revenue
Fiscal Service Service Half-Cent Available for
Year Taxes Tax Sales Tax Debt Service Principal Interest Coverage
1999 1,027,025 - 335,509 1,362,534 - - -
2000 1,247,966 - 380,646 1,628,612 - - -
2001 1,551,762 - 416,036 1,967,798 - - -
2002 1,054,652 800,177 464,290 2,319,119 -1 254,188 9.12
2003 1,172,270 808,813 540,717 2,521,800 390,000 250,775 3.94
2004 1,381,779 910,725 780,863 3,073,367 395,000 243,166 4.82
2005 1,552,000 1,063,454 929,740 3,545,194 405,000 233,653 5.55
2006 1,781,626 1,163,971 1,156,694 4,102,291 415,000 222,372 6.44
2007 1,559,824 1,253,425 1,209,748 4,022,997 415,000 228,338 6.25
2008 1,678,227 1,279,653 1,139,315 4,097,195 425,000 209,606 6.46
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 No principal payments were scheduled in this the period in which the debt was issued.
Public Improvement Revenue Bonds, Series 2002
Debt Service
City of Clermont, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years
93
State Total Revenue
Fiscal Infrastructure Available for
Year Tax Debt Service Principal Interest Coverage
1999 547,480 547,480 185,000 65,983 2.18
2000 598,313 598,313 200,000 53,310 2.36
2001 708,636 708,636 210,000 39,510 2.84
2002 752,740 752,740 225,000 24,915 3.01
2003 996,162 996,162 130,000 9,165 7.16
2004 1,233,598 1,233,598 - 1 - 1 - 1
2005 1,538,498 1,538,498 - 1 - 1 - 1
2006 1,934,455 1,934,455 - 1 - 1 - 1
2007 1,920,486 1,920,486 - 1 - 1 - 1
2008 1,900,640 1,900,640 - 1 - 1 - 1
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 All outstanding revenue bonds were paid in full as of June 1, 2003.
Debt Service
Last Ten Fiscal Years
Sales Tax Revenue Bonds, Series 1989
City of Clermont, Florida
Pledged-Revenue Coverage
94
Water and Water and
Sewer Sewer Net Revenue
Fiscal Operating Operating Available for
Year Revenues
1 Expenses2 Debt Service Principal Interest Coverage
1999 2,803,192 1,737,216 1,065,976 175,000 553,085 1.46
2000 3,619,767 2,122,938 1,496,829 180,000 530,069 2.11
2001 4,326,638 2,236,146 2,090,492 -3 543,741 3.84
2002 5,124,778 2,952,556 2,172,222 -3 932,128 2.33
2003 5,901,907 3,461,216 2,440,691 -3 932,128 2.62
2004 7,261,239 4,339,959 2,921,280 -3 932,128 3.13
2005 7,841,830 4,773,639 3,068,191 100,000 929,928 2.98
2006 9,421,834 5,456,689 3,965,145 150,000 924,353 3.69
2007 12,875,170 8,820,932 4,054,238 230,000 915,802 3.54
2008 10,075,706 7,192,314 2,883,392 390,000 892,688 2.25
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.
3 On November 21, 2000, the City defeased its 1972 and 1988 bond issues and paid off a 1996 Bond
Anticipation note that was due December 1, 2000. Principal payments were not due until December 1, 2004.
Water and Sewer Revenue and Refunding Bonds
Debt Service
City of Clermont, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years
95
Personal Education
Income Level in
(amounts Per Capita Years of
Fiscal expressed in Personal Median Formal School Unemploy-
Year Population
1 thousands) Income
2 Age2 Schooling2 Enrollment3 ment Rate4
1999 8,861 * * * * 3,683 2.7%
2000 9,455 204,937 21,675 37.6 13.2 3,841 3.6%
2001 10,571 * * * * 4,500 4.4%
2002 13,718 * * * * 4,616 5.6%
2003 15,391 * * * * 4,630 5.0%
2004 17,654 * * * * 5,219 4.3%
2005 20,017 * * * * 5,165 3.6%
2006 21,986 509,987 23,196 35.9 13.5 5,375 3.1%
2007 22,882 500,338 21,866 36.8 13.6 5,411 4.7%
2008 23,476 696,040 29,649 39.6 13.2 4,208 6.5%
Sources:1 College of Business Administration, University of Florida - Bureau of Economic and
Business Research
2 Metro Orlando Economic Development Commission
3 Lake County School Board
4 U.S. Department of Labor, Bureau of Labor Statistics
Note: Unemployment rate information is available on a countywide basis only.
* Information is not available.
City of Clermont, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
96
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment
1 Employees Rank Employment
Walmart 1,930 1 16.43%
South Lake Hospital, Inc. 1,000 2 8.51% 216 2 *
Publix Supermarkets 777 3 6.61% 83 6 *
Lake County School System 503 4 4.28% 221 1 *
Target Corporation 309 5 2.63%
Ford of Clermont 300 6 2.55% 65 9 *
Winn Dixie 291 7 2.48% 50 10 *
City of Clermont 276 8 2.35% 113 4 *
Progressive Plumbing Inc 220 9 1.87%
Westminister Care of Clermont 175 10 1.49% 120 3 *
CBS Builders Supply Inc. 104 5 *
Kmart 83 7 *
Exceletech, Inc. 65 8 *
TOTAL 5,781 81.37% 1,120 *
Source: Florida Agency for Workforce Innovation, Labor Market Statistics Center
1 The City of Clermont has an estimated daytime population of 13,104 with approximately 1,810 business
establishments as of 9/30/2008.
* Information is not available.
2008 1999
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
97
Usage Percentage of Usage Percentage of
(thousands Total City (thousands Total City
Employer of gallons) Rank Metered Flow
1 of gallons) Rank Metered Flow
South Lake Hospital, Inc. 28,177 1 1.01% * * *
Heritage Hills of Clermont 26,272 2 0.94% * * *
Lennar Homes 20,999 3 0.75% * * *
Lake County Schools 19,303 4 0.69% * * *
KB Homes 15,731 5 0.56% * * *
City of Clermont 14,642 6 0.52% * * *
Sundance Clermont LLC 9,995 7 0.36% * * *
Osprey Ridge Apartments Ltd 9,808 8 0.35% * * *
Westminister Community Care 8,628 9 0.31% * * *
Emerald Lakes of Clermont 7,727 10 0.28% * * *
TOTAL 161,282 6.08% * *
1 The City of Clermont had a total metered water flow of approximately 2,589,664,000 gallons for the
12-month period ending September 30, 2008
* Information is not available.
2008 1999
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
98
Usage Percentage of Usage Percentage of
(thousands Total City (thousands Total City
Employer of gallons) Rank Metered Flow
1 of gallons) Rank Metered Flow
South Lake Hospital 24,789 1 2.83% * * *
Lake County Schools 19,205 2 2.19% * * *
Blue Water Express Car Wash 16,342 3 1.86% * * *
Gardens at Citrus Tower 11,599 4 1.32% * * *
Osprey Ridge Apartments LTD 10,731 5 1.22% * * *
Westminster Comm Care Service 10,078 6 1.15% * * *
Heritage Hills of Clermont 9,977 7 1.14% * * *
City of Clermont 9,758 8 1.11% * * *
Lennar Homes 7,607 9 0.87% * * *
King's Ridge 1,970 10 0.22% * * *
TOTAL 122,056 13.92% * *
1 The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 877,105,000
gallons for the 12-month period ending September 30, 2008
* Information is not available.
2008 1999
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
99
Function 1999 2000 2001 2002
General Government 15.50 19.50 17.50 17.00
Public Safety:
Police
Sworn personnel 24.00 25.00 27.00 29.00
Non sworn personnel 10.00 10.00 10.00 10.00
Fire
Firefighters 5.00 5.00 11.00 12.00
Other personnel - 1.00 1.00 1.00
Physical Environment 4.00 4.00 5.00 -
Transportation 7.09 7.87 8.21 11.35
Human Services 0.50 0.50 0.50 1.00
Culture & Recreation 14.50 17.50 19.50 20.75
Water 11.84 12.59 14.12 18.72
Sewer 9.84 13.09 14.82 19.02
Stormwater 2.07 2.29 2.49 2.20
Sanitation 8.66 8.66 8.86 8.96
Total 113.00 127.00 140.00 151.00
Source: City of Clermont Administrative Services Department.
Full-time Equivalent Employees as of September 30,
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
100
2003 2004 2005 2006 2007 2008
23.00 22.50 25.50 27.50 30.50 30.50
31.00 34.00 38.00 45.00 51.00 51.00
11.00 12.00 16.00 16.00 16.00 16.00
13.00 19.00 22.00 38.00 45.00 45.00
1.00 1.00 1.00 2.00 2.00 2.00
0.50 7.50 7.50 10.00 10.00 10.00
13.16 13.25 13.25 13.70 15.20 15.20
1.75 2.25 2.25 2.00 2.00 2.00
23.50 19.45 19.45 22.20 26.20 26.20
20.32 22.90 23.40 25.40 26.90 26.90
19.22 25.80 25.30 26.30 27.80 27.80
4.49 4.65 4.65 7.20 8.70 8.70
9.06 8.70 8.70 8.70 14.70 14.70
171.00 193.00 207.00 244.00 276.00 276.00
Full-time Equivalent Employees as of September 30,
101
Function 1999 2000 2001 2002
General Government
Municipal boundary (square miles) 11.26 11.26 11.29 11.18
Occupational licenses issued * * 1,202 1,290
A/P Checks issued 3,024 3,757 4,481 4,808
Commercial construction (units) 5 11 17 39
Commercial construction
(value in thousands) 17,725 22,396 17,264 52,343
Residential construction (units) 492 711 884 829
Residential construction
(value in thousands) 34,375 58,830 82,040 77,470
Public Safety:
Police
Auto accidents 305 392 374 390
Physical arrests 318 397 462 465
911 calls received * * * *
Evidence processed (pieces) 123 229 311 1,123
Parking violations * * 8 36
Traffic violations 2,220 4,562 3,489 3,623
Fire
Volunteer firefighters 33 34 34 34
Fire inspections completed 319 266 279 494
Emergency calls answered 579 831 1,556 2,271
Non-emergency calls answered 64 54 65 77
Human Services
Animals captured * 231 488 521
Water
Residential customers 5,009 5,992 7,303 8,461
Commercial customers 490 531 579 644
Annual water usage
(thousands of gallons) 1,146,663 1,394,359 1,365,196 1,299,701
Sewer
Residential customers 3,328 3,928 5,001 6,243
Commercial customers 443 458 511 581
Sources: Various government departments.
* Data not available.
** Program was discontinued in FY 07-08
Fiscal Year
City of Clermont, Florida
Operating Indicators by Function
Last Ten Fiscal Years
102
2003 2004 2005 2006 2007 2008
11.88 11.97 12.45 14.13 14.37 14.42
1,468 1,551 1,795 1,985 2,141 2,263
4,940 4,967 5,415 5,664 6,023 6,440
22 24 23 38 24 42
18,758 14,272 7,115 17,534 24,433 18,859
959 1,155 673 635 324 301
124,837 158,458 103,672 186,189 136,477 56,578
489 541 671 625 1,192 1,272
449 414 500 707 933 842
* 5,580 6,262 7,008 6,317 6,046
1,075 1,054 1,127 1,610 1,585 1,300
48 87 71 161 140 145
2,713 2,394 2,855 5,259 5,164 5,103
34 34 27 27 9 8
441 483 457 625 414 880
2,506 3,093 3,321 3,132 3,048 3,177
86 143 143 189 198 234
364 562 445 495 652 0 **
10,529 12,751 14,284 15,733 16,394 16,959
723 817 921 993 1,069 1,156
1,338,818 1,655,203 1,788,337 2,121,588 2,654,352 2,589,664
7,650 9,217 10,176 11,125 11,554 11,913
673 767 883 955 1,031 1,120
Fiscal Year
103
Function 1999 2000 2001 2002
General Government
Public Safety:
Police
Police stations 1 1 1 1
Patrol units 24 25 27 29
Fire
Fire stations 1 1 3 3
Staffed fire stations 1 1 2 2
Fire hydrants 642 657 840 940
Fire apparatus 5 6 7 6
Staffed fire apparatus 0 1 2 2
ALS non-transport units 0 0 1 1
Transportation
Streets paved (miles) 48.00 52.00 77.00 88.74
Streetlights 775 825 875 1,056
Culture & Recreation
Number of parks 22 22 22 22
Parks acreage 101.5 101.5 101.5 101.5
Scenic linear trail (miles) ** ** 3.5 3.5
Tennis courts 4 4 6 6
Fishing piers ** ** 4 4
Boat ramp 1 1 1 1
Libraries 1 1 1 1
Water
Miles of water mains * * * 88.74
Miles of sanitary sewers * * 34.00 39.05
Miles of storm sewers * * 8.50 9.11
Sources: Various government departments.
* Data not available.
** Asset was not in service.
Fiscal Year
City of Clermont, Florida
Capital Asset Statistics by Function
Last Ten Fiscal Years
104
2003 2004 2005 2006 2007 2008
111111
31 34 38 45 45 45
333333
222233
1,064 1,200 1,431 1,630 1,896 2,140
778999
223455
233333
92.90 97.00 101.39 109.94 122.93 126.16
1,056 1,106 1,131 1,231 1,256 1,331
22 22 22 22 22 22
101.5 101.5 101.5 230.5 230.5 230.5
3.5 3.5 5.7 5.7 5.7 5.7
688888
444444
111111
111111
88.74 92.94 97.23 104.52 115.02 115.98
39.05 41.15 44.26 49.51 56.98 59.40
9.11 9.53 10.27 11.13 18.07 20.88
Fiscal Year
105
106
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and City Council
City of Clermont, Florida
We have audited the financial statements of City of Clermont, Florida, as of and for the year
ended September 30, 2008, and have issued our report thereon dated March 19, 2009. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow
management of employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A significant deficiency is a control
deficiency, or combination of control deficiencies, that adversely affects the City’s ability to
initiate, authorize, record, process, or report financial data reliably in accordance with
generally accepted accounting principles such that there is more than a remote likelihood
that a misstatement of the City’s financial statements that is more than inconsequential will
not be prevented or detected by the City’s internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies,
that results in more than a remote likelihood that a material misstatement of the financial
statements will not be prevented or detected by the City’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all
deficiencies in internal control that might be significant deficiencies and accordingly would
not necessarily disclose all significant deficiencies that are also considered to be material
weaknesses. We did not identify any deficiencies in internal control over financial reporting
that we consider to be material weaknesses, as defined above.
107
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
We noted certain matters that we reported to management of the City of Clermont, Florida,
in a separate letter dated March 19, 2009. We did not audit the City’s response, and
accordingly, we express no opinion on it.
This report is intended solely for the information and use of management, the City Council
and the Auditor General of the State of Florida, and is not intended to be, and should not be
used by anyone other than these specified parties.
March 19, 2009
108
109
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR
FEDERAL PROGRAM AND STATE PROJECT AND INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Honorable Mayor and City Council
City of Clermont, Florida
Compliance
We have audited the compliance of the City of Clermont, Florida with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement and the requirements described in the Executive Office of the Governor's
State Projects Compliance Supplement, that are applicable to each of its major federal programs
and state projects for the year ended September 30, 2008. The City of Clermont, Florida’s major
federal programs and state projects are identified in the summary of auditor’s results section of
the accompanying Schedule of Findings and Questioned Costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major federal
programs and state projects is the responsibility of the City of Clermont, Florida’s management.
Our responsibility is to express an opinion on the City of Clermont, Florida’s compliance based on
our audit.
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; OMB
Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter
10.550, Rules of the Auditor General. Those standards, OMB Circular A-133 and Chapter
10.550, Rules of the Auditor General require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program or state
project occurred. An audit includes examining, on a test basis, evidence about the City of
Clermont, Florida’s compliance with those requirements and performing such other procedures as
we considered necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion. Our audit does not provide a legal determination on the City of Clermont,
Florida’s compliance with those requirements.
In our opinion, the City of Clermont, Florida, complied, in all material respects, with the
requirements referred to above that are applicable to each of its major federal programs and state
projects for the year ended September 30, 2008.
Internal Control Over Compliance
The management of the City of Clermont, Florida is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts and
grants applicable to federal programs and state projects.
110
In planning and performing our audit, we considered the City of Clermont, Florida’s internal control
over compliance with requirements that could have a direct and material effect on a major federal
program or state project in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the City of Clermont, Florida’s internal control over compliance.
A control deficiency in an entity’s internal control over compliance 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 noncompliance with a type of compliance
requirement of a federal program on a timely basis. A significant deficiency is a control deficiency,
or a combination of control deficiencies, that adversely affects the entity’s ability to administer a
federal program such that there is more than a remote likelihood that noncompliance with a type
of compliance requirement of a federal program that is more than inconsequential will not be
prevented or detected by the entity’s internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that material noncompliance with a type of compliance
requirement of a federal program will not be prevented or detected by the entity’s internal control.
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies
in internal control over compliance that we consider to be a material weaknesses, as defined
above.
This report is intended solely for the information and use of management, of the City, the Auditor
General of the State of Florida and federal or state awarding agencies and is not intended to be
and should not be used by anyone other than these specified parties.
March 19, 2009
111
CITY OF CLERMONT, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE
Year Ended September 30, 2008
Federal Grantor/Pass-through
Grantor/Program Title
CFDA No.
CFSA No.
Grant
Number
Reimbursable
Expenditures
Federal Awards
U. S. Department of Housing
And Urban Development
Passed through Florida
Department of Community Affairs:
Community Development 07DB-3R-06-
Block Grant* 14.228 45-02-N30 $ 700,000
U. S. Department of Homeland Security
FEMA Assistance to Firefighters 97.044 EMW-2007-FO-12036 145,310
U. S. Department of Justice
Passed through Florida Department
of Law Enforcement:
2008-JAGC-LAKE-
Justice Assistance Grant 16.738 4-Q9-090 19,538
2008-JAGD-LAKE
Justice Assistance Grant 16.738 5-Q0-063 9,121
28,659
Total Federal Awards $ 873,969
State Financial Assistance
Florida Department of Community Affairs
Florida Communities Trust Grant* 52.002 07-056-FF7 $3,314,213
Total State Financial Assistance $3,314,213
*Denotes a major program.
112
CITY OF CLERMONT, FLORIDA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE
FINANCIAL ASSISTANT
Year Ended September 30, 2008
Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance
includes the federal grant activity of the City of Clermont, Florida and is presented on the
accrual basis of accounting. The information in the schedule is presented in accordance with
the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. This schedule also includes state financial assistance activity of the City of
Clermont, Florida and is presented on the accrual basis of accounting. This information is
presented in accordance with the requirements of Section 215.97, Florida Statutes. Therefore,
some accounts presented in this schedule may differ from amounts presented in, or used in the
preparation of, the basic financial statements.
113
CITY OF CLERMONT, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS -
FEDERAL PROGRAMS AND STATE PROJECTS
For the Year Ended September 30, 2008
A. Summary of Auditor’s Results
1. The auditor's report expresses an unqualified opinion on the financial statements of the
City of Clermont, Florida.
2. No significant deficiencies relating to the audit of the financial statements are reported in
the 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.
3. No instance of noncompliance material to the financial statements of the City of
Clermont, Florida were disclosed during the audit.
4. No significant deficiencies relating to the audit of the major federal award programs and
state projects are reported in the Report on Compliance with Requirements Applicable to
Each Major Federal Program and State Project and on Internal Control Over Compliance
in accordance with OMB Circular A-133.
5. The auditor’s report on compliance for the major federal programs and state projects for
the City of Clermont, Florida, expresses an unqualified opinion.
6. The programs/projects tested as major programs/projects included in the following:
Federal Program Federal CFDA No.
U. S. Department of Housing and Urban
Development - Community Development
Block Grant
14.228
State Project State CSFA No.
Florida Department of Community Affairs-
Florida Communities Trust Grant
52.002
7. The threshold for distinguishing Type A and Type B programs/projects was $300,000 for
major federal programs and for major state projects.
8. The City of Clermont, Florida was determined to be a low-risk auditee pursuant to OMB
Circular A-133. (This does not apply to state programs.)
B. Findings - Financial Statements Audit
None
C. Findings and Questioned Costs – Major Federal
Award Programs and State Projects
None
114