Comprehensive Annual Financial Report - 2009-2010CITYOF CLERMONT FLORIDA
Comprehensive Annual
Financial Report
Fiscal Year Ended
September 30, 2010September 30, 2010
Celebrating Clermont’s 125th Anniversary
1884-2009
Commemorating Clermont’s history through
photographs of downtown Clermont over the years.
City of Clermont, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2010
Prepared By
Finance
Regina M. Frazier Lacy Smith-Castillo
Finance Manager Accountant
i
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2010
Page
I. Introductory Section:
Table of Contents i
Letter of Transmittal iii
GFOA Certificate of Achievement ix
List of Principal Officials xi
Organizational Chart xii
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 13
Statement of Activities 14
Fund Financial Statements:
Balance Sheet - Governmental Funds 15
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds 16
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of
Activities
17
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - General Fund
18
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual – Community Redevelopment
Special Revenue Fund
21
Statement of Net Assets - Proprietary Funds 22
Statement of Revenues, Expenses and Changes in
Fund Net Assets - Proprietary Funds
25
Statement of Cash Flows – Proprietary Funds 26
Statement of Fiduciary Net Assets - Fiduciary Funds 28
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 29
Notes to Financial Statements 31
Required Supplementary Information 61
Other Governmental Funds:
Combining Balance Sheet – Other Governmental Funds 66
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Other Governmental Funds 68
Schedule of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual:
Special Revenue Funds 70
Debt Service Fund 75
Capital Project Fund 76
ii
CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2010
Page
II. Financial Section - Continued:
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets 78
Combining Statement of Changes in Fiduciary Net Assets 79
III. Statistical Section:
Net Assets by Component 82
Changes in Net Assets 84
Fund Balances of Governmental Funds 88
Changes in Fund Balances of Governmental Funds 90
Governmental Activities Tax Revenues by Source 92
Assessed Value and Estimated Actual Value of Taxable Property 93
Property Tax Rates – Direct and Overlapping Governments 94
Principal Property Taxpayers 95
Property Tax Levies and Collections 96
Ratios of Outstanding Debt by Type 97
Direct and Overlapping Governmental Activities Debt 98
Pledged-Revenue Coverage 99
Demographic and Economic Statistics 102
Principal Employers 103
Principal Water Customers 104
Principal Sewer Customers 105
Full-time Equivalent City Government Employees by Function 106
Operating Indicators by Function 108
Capital Asset Statistics by Function 110
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 113
Affidavit of Impact Fee Compliance 115
Management Letter 117
Current Year Comments 119
Status of Prior Year Comments 120
Response to Management Comments 121
Audit Findings 122
CITY OF CLERMONT
P.O. BOX 120219 · CLERMONT, FLORIDA 34712-0219 · PHONE: 352-241-7360 · FAX: 352-394-4082
www.CityofClermontFL.com
March 31, 2011
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, 2010. 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, 2010.
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, 2010, 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, 2010, 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
iv
transmittal is designed to complement the MD&A and should be read in conjunction with
it.
Profile of the City of Clermont
The City was founded in 1884 and incorporated in 1916. The City currently has a land
area of 14.7560 square miles and population of approximately 28,742. 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
v
and final amended budget-to-actual comparisons are provided in this report for each
individual governmental fund. The General Fund is presented on pages 18-19, the
Community Redevelopment Special Revenue fund is presented on page 21 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 65.
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, 2010, Lake County’s unemployment rate was 12.4%. This is an increase
of 0.98% over 2009 and is slightly higher than the state’s average of 11.9% and the
national average of 9.6%. Educational institutions in Clermont such as Lake-Sumter
Community College and the University of Central Florida assist in supplying a skilled
labor force.
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.
Major initiatives. The following items are capital projects that are currently planned for
the City:
• The planning/design phase for the expansion of the existing Police Station. The
project consists of expanding the existing Police Station and demolishing the
building previously occupied by the Lake County Sheriff’s office. The expansion
is anticipated to cost $3,750,000 and will be funded from police impact fees.
• The planning/design phase for the replacement of Jenkins Auditorium. The
replacement building will be built on vacant City owned property and will include
meeting space, kitchen area and office area. The new facility is anticipated to
cost $2,091,500 and is proposed to be funded from infrastructure sales taxes.
• The planning/design phase of the construction of the West Water Treatment
Plant. The plant will include a one million gallon ground storage tank, a sodium
hypochlorite feed system for disinfection and a bank of high service pumps to
deliver potable water to the distribution system. The construction is anticipated
to cost $8,000,000 and will be funded from water utility reserves.
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.
vi
Slowed building permits and declining home values are being monitored closely since
they are directly impacted by the current recession. The recession also affects the
growth of impact fees, ad valorem taxes, utility service taxes and franchise fee revenues
in future years. Due to these circumstances, the City is actively monitoring all expansion
projects and limiting any costs that will require multi-year funding commitments. The
Clermont City Council and management through careful short and long range planning
and sound management practices are committed to budgeting and managing all
resources in the most cost effective manner.
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 $52,919,009 and the average
investment earnings rate was 2.38%. 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 cash and
investments at year end were $14,810,025 and the average investment income was
9.2%.
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, 2009. This was the twenty-second 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 Lacy Smith-Castillo 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.
Re
s
p
e
c
t
f
u
l
l
y
s
u
b
m
i
t
t
e
d
,
A
^
^
^
j
<
z
3
^
^
L
^
^
/
W
a
^
h
j
^
S
a
u
n
d
e
r
s
Jo
s
e
p
^
A
/
a
n
Z
i
l
e
Cil
^
K
/
l
a
n
a
g
e
r
Ad
m
i
n
i
s
t
r
a
t
i
v
e
S
e
i
^
i
c
e
s
J
3
i
r
e
c
t
o
r
<
VI
I
Ce
r
t
i
f
i
c
a
t
e
o
f
A
c
h
i
e
v
e
m
e
n
t
f
o
r
E
x
c
e
l
l
e
n
c
e
in
F
i
n
a
n
c
i
a
l
Re
p
o
r
t
i
n
g
Pr
e
s
e
n
t
e
d
t
o
Ci
t
y
o
f
C
l
e
r
m
o
n
t
F
l
o
r
i
d
a
Fo
r
i
t
s
C
o
m
p
r
e
h
e
n
s
i
v
e
A
n
n
u
a
l
Fi
n
a
n
c
i
a
l
R
e
p
o
r
t
fo
r
t
h
e
F
i
s
c
a
l
Y
e
a
r
E
n
d
e
d
Se
p
t
e
m
b
e
r
3
0
,
2
0
0
9
A
C
e
r
t
i
f
i
c
a
t
e
o
f
A
c
h
i
e
v
e
m
e
n
t
f
o
r
E
x
c
e
l
l
e
n
c
e
m
F
m
a
u
c
i
a
l
Re
p
o
r
t
i
n
g
i
s
p
r
e
s
e
n
t
e
d
b
y
t
h
e
G
o
v
e
r
n
m
e
n
t
F
i
n
a
n
c
e
O
f
f
i
c
e
r
s
As
s
o
c
i
a
t
i
o
n
o
f
t
h
e
U
n
i
t
e
d
S
t
a
t
e
s
a
n
d
C
a
n
a
d
a
t
o
go
v
e
r
n
m
e
n
t
u
n
i
t
s
a
n
d
p
u
b
U
c
e
m
p
l
o
y
e
e
r
e
t
i
r
e
m
e
n
t
sy
s
t
e
m
s
w
h
o
s
e
c
o
m
p
r
e
h
e
n
s
i
v
e
a
n
n
u
a
l
f
i
n
a
n
c
i
a
l
re
p
o
r
t
s
(
C
A
F
R
s
)
a
c
h
i
e
v
e
t
h
e
h
i
g
h
e
s
t
st
a
n
d
a
r
d
s
i
n
g
o
v
e
r
n
m
e
n
t
a
c
c
o
u
n
t
m
g
an
d
f
i
n
a
n
c
i
a
l
r
e
p
o
r
t
i
n
g
.
^
^
^
«
y
@
^
&>
y&
\
^
SM
I
T
E
S
)
m
m
\
^
<A
O
%
»1
^
Pr
e
s
i
d
e
n
t
U
S
A
D
A
t
o
?
>
^
^
^
ft
i
i
^
o
<f
c
.
Ex
e
c
u
t
i
v
e
D
i
r
e
c
t
o
r
xi
CITY OF CLERMONT, FLORIDA
LIST OF ELECTED AND APPOINTED OFFICIALS
SEPTEMBER 30, 2010
ELECTED OFFICIALS
Mayor Harold Turville, Jr.
Mayor Pro-Tem Keith Mullins
Council Member Ray Goodgame
Council Member Jack Hogan
Council Member Robert Thompson
APPOINTED OFFICIALS
City Manager Wayne Saunders
Assistant City Manager Darren Gray
City Attorney Dan Mantzaris
Administrative Services Director Joseph Van Zile
City Clerk Tracy Ackroyd
Engineering Director Tamara Richardson
Fire Chief Carle Bishop
Planning Director James Hitt
Police Chief Stephen Graham
Public Services Director Preston Davis
Utilities Director James Kinzler
1
In accordance with Government Auditing Standards, we have also issued a report dated March
23, 2011 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 performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the pension and other postemployment benefits
disclosures on pages 3 through 12 and 61 through 64 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
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 as a whole. The
introductory section, combining and individual fund financial statements and schedules and
statistical section are presented for purposes of additional analysis and are not a required part
of the basic financial statements. The combining and individual nonmajor fund financial
statements and schedules are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole. The introductory and statistical sections have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
March 23, 2011
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, 2010. 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, 2010 by
$138,738,180 (net assets). Of this amount, $25,394,764 (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 $2,136,336 (or 1.6%) over the previous fiscal
year. There was also a decrease in net assets of $542,000 due to a change in
accounting principle in relation to Other Post Employment Benefits (OPEB) reporting.
• At September 30, 2010, the City of Clermont’s governmental funds reported combined
ending fund balances of $22,177,725 an increase of $1,418,528 over the previous fiscal
year. Of this amount $19,174,018 (unreserved fund balance) is available for spending
at the government’s discretion.
• The General Fund, the City’s primary operating fund, reported an unreserved fund
balance of $11,357,752, which represents 65% 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 13 and 14 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).
Both of the government-wide financial statements distinguish functions of the City of Clermont that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City of Clermont
include general government, public safety, physical environment, transportation, economic
environment, and culture and recreation. The business-type activities of the City of Clermont
include water, sewer, sanitation, and stormwater utilities.
3
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 Community
Redevelopment Fund, both of which are considered to be major funds. Data from the other eight
governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of these 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 (pages 18-19) and
the Community Redevelopment Fund (page 21) to demonstrate compliance with budgets. Other
nonmajor funds comparisons can be found beginning on page 70.
The basic governmental fund financial statements can be found on pages 15 - 21 of this report.
Proprietary funds. The City of Clermont maintains two types of proprietary funds: enterprise and
internal service, which can be found on pages 22-27 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.
4
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 28 - 29 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 31 - 59 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 66 -
76 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 13.
2009-10 2008-09 2009-102008-09 2009-10 2008-09
Assets:
Current and other assets 25,017,023$ 22,052,573$ 31,214,772$ 30,475,440$ 56,231,795$ 52,528,013$
Capital assets 37,856,800 38,470,822 71,173,655 70,782,742 109,030,455 109,253,564
Total assets 62,873,823 60,523,395 102,388,427 101,258,182 165,262,250 161,781,577
Liabilities:
Long-term liabilities outstanding*5,449,961 5,518,938 16,570,095 16,609,064 22,020,056 22,128,002
Other liabilities 2,925,470 1,330,442 1,578,544 1,721,289 4,504,014 3,051,731
Total liabilities 8,375,431 6,849,380 18,148,639 18,330,353 26,524,070 25,179,733
Net assets:
Invested in capital assets,
Net of related debt 33,816,797 33,937,745 55,539,792 54,834,359 89,356,589 88,772,104
Restricted 6,693,736 6,525,848 17,293,091 10,436,763 23,986,827 16,962,611
Unrestricted 13,987,859 13,210,422 11,406,905 17,656,707 25,394,764 30,867,129
Total net assets 54,498,392$ 53,674,015$ 84,239,788$ 82,927,829$ 138,738,180$ 136,601,844$
*Note: Fiscal Year 2009 balances have been restated to include adjustment of OPEB obligation recorded.
CITY OF CLERMONT’S Net Assets
Governmental Activities Business-type Activities Total
The City’s total net assets at September 30, 2010 were $138,738,180. Of the City’s total net
assets $89,356,589 (64.4%) 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, $23,986,827 (17.3%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of the City’s
total net assets, $25,394,764 (18.3%) is unrestricted. These assets may be used at the City’s
discretion in meeting its ongoing obligations to citizens and creditors.
5
The City’s net assets increased by $2,136,336 during the current fiscal year. Major components of
this increase are discussed in the Governmental and Business-Type Activities sections to follow.
Restricted reserves represent the accumulation of impact fee funds for upcoming and ongoing
capital projects. Unrestricted reserves represent increases in investment cash in governmental
funds.
The following is a summary of the City’s governmental and business-type activities for fiscal year
2009-10, including revenues and expenses, with a comparison to the prior year. For more detail
see the Statement of Activities on page 14.
2009-102008-092009-102008-092009-102008-09
Revenues:
Program revenues -
Charges for services3,393,971$ 3,156,087$ 13,111,848$ 12,925,275$ 16,505,819$ 16,081,362$
Operating grants and
contributions 1,162,255 921,314 - - 1,162,255 921,314
Capital grants and
contributions 134,200 3,306,855 1,543,638 2,137,323 1,677,838 5,444,178
General revenues -- -
Property Taxes 6,844,084 7,600,966 - - 6,844,084 7,600,966
Franchise Fees 2,373,096 2,151,258 - - 2,373,096 2,151,258
Utility Taxes 2,558,282 2,151,318 - - 2,558,282 2,151,318
Intergovernmental 4,503,416 4,458,162 - - 4,503,416 4,458,162
Investment income and
miscellaneous 525,178 1,049,971 359,711 1,005,498 884,889 2,055,469
Total revenues 21,494,482 24,795,931 15,015,197 16,068,096 36,509,679 40,864,027
Expenses:
General government*4,286,713 4,828,177 - - 4,286,713 4,828,177
Public safety*12,458,811 11,014,677 - - 12,458,811 11,014,677
Physical environment*318,878 384,185 - - 318,878 384,185
Transportation*1,767,731 1,178,032 - - 1,767,731 1,178,032
Economic environm ent 50,328 101,567 - - 50,328 101,567
Culture and recreation*2,055,568 2,125,129 - - 2,055,568 2,125,129
Interest on long-term debt174,858 325,682 - - 174,858 325,682
Water*- - 4,316,170 4,054,390 4,316,170 4,054,390
Sewer*- - 5,927,529 4,525,197 5,927,529 4,525,197
Sanitation*- - 2,168,794 2,118,553 2,168,794 2,118,553
Stormwater*- - 847,963 544,458 847,963 544,458
Total expenses 21,112,887 19,957,449 13,260,456 11,242,598 34,373,343 31,200,047
Increase (Decrease) in Net
Assets Before Transfers 381,595 4,838,482 1,754,741 4,825,498 2,136,336 9,663,980
Transfers 442,782 468,571 (442,782) (468,571) - -
Increase in Net Assets 824,377 5,307,053 1,311,959 4,356,927 2,136,336 9,663,980
Net Assets – Beginning53,674,015 48,366,962 82,927,829 78,570,902 136,601,844 126,937,864
Net Assets – Ending 54,498,392$ 53,674,015$ 84,239,788$ 82,927,829$ 138,738,180$ 136,601,844$
*Note: Fiscal Year 2009 balances have been restated to include adjustment of OPEB obligation recorded.
Governmental Activities
CITY OF CLERMONT’S Changes in Net Assets
Business-type Activities Total
6
Governmental activities - Governmental activities increased the City of Clermont’s net assets by
$824,377. Additional revenues associated with fee based services as well as higher collections of
franchise fees and utility taxes and reduced general government expenditures contributed to this
change.
The following graph is a comparison of program revenues and program expenses for all
governmental activities. This chart is intended to give the reader an idea of the degree to which
governmental activities are self-supporting.
The following pie chart illustrates the composition of governmental activities revenue and its
percent in relation to total governmental activities revenues.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
General governmentPublic safetyTransportation/public
works
Culture & recreationPhysical environment
and other
Interest on long‐term
debt
$4,286,713
$12,458,811
$1,767,731 $2,055,568
$369,206 $174,858
$1,856,807 $1,547,679
$414,288
$871,652
$0 $0
Expenses and Program Revenues -Governmental Activities
Expenses
Program revenues
Intergovernmental,
21%
Charges for services,
16%
Operating grants and
contributions, 5%
Investment income &
miscellaneous , 2%
Other taxes, 23%
Capital grants and
contributions, 1%
Property taxes, 32%
Revenues by Source -Governmental Activities
Intergovernmental Charges for services Operating grants and contributions
Investment income & miscellaneous Other taxes Capital grants and contributions
Property taxes
7
Business-type activities - Business-type activities increased the City of Clermont’s net assets by
$1,311,959. This change was due to capital contributions totaling $1,543,638. 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 West Side Force Main, the
Equilization Wastewater Basin, Lift Station Improvements and the Reclaim Water System
Expansion.
The following graph is a comparison of program revenues and program expenses for all business-
type activities. This chart is intended to give the reader an idea of the degree to which business-
type activities are self-supporting.
The following pie chart illustrates the composition of business-type activities revenue and its
percent in relation to total business-type activities revenues.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Water SewerSanitationStormwater
$4,316,170
$5,927,529
$2,168,794
$847,963
$5,348,924
$5,863,937
$2,613,375
$829,250
Expenses and Program Revenues -Business Type Activities
Expenses
Program Revenue
Investment income &
miscellaneous , 2.4%
Charges for Services,
87.3%
Capital Grants and
Contributions, 10.3%
Revenues by Source -Business Activities
Investment income & miscellaneous Charges for Services Capital Grants and Contributions
8
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, 2010, the City of Clermont’s governmental funds reported combined
ending fund balances of $22,177,725 an increase of $1,418,528 in comparison with the prior
year. Of the governmental funds combined ending fund balances, $19,174,018 (86%)
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,
2010, the fund balance in the General Fund was $11,603,535 an increase of $529,168 in
comparison with the prior year. This increase is due to current revenues exceeding current
expenditures. Revenue increases are mainly attributed to tax receipts coming in higher than
anticipated due to additional collections of delinquent taxes as well as fewer taxpayers taking
advantage of the early payment discounts. Additional donations, reimbursements, surplus
property sales, and investment earnings also contributed to this increase in fund balance.
Expenditures in general government, public safety, and transportation also came in less than
anticipated creating additional surplus funds. Of the total fund balance in the General Fund,
$11,357,752 (98%) is 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 65.2% of total General Fund expenditures,
while total fund balance represents 66.7% of that same amount.
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, 2010,
the fund balance was $1,472,734 an increase of $292,038 over the prior year. This increase is
due to unanticipated delays in the streetscape improvements project.
The remainder of the change $597,322 to the governmental fund balance was from the non-
major governmental funds. The Infrastructure Fund and Capital Projects Fund balances
decreased by $29,732 and $293,408, respectively. Recreation, Police and Fire Impact Fee fund
balances combined increased a total of $747,253 due to impact fees coming in higher than
anticipated. The fund balances in the remaining non-major funds increased a total of $173,209.
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.
9
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, 2010, the City of Clermont’s Water Fund reported total net assets of $28,469,022, an
increase of $773,693 in comparison with the prior year. This increase in net assets was a result
of surplus operating income primarily due to lower than anticipated operating expenses.
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, 2010, the
City of Clermont’s Sewer Fund reported total net assets of $47,306,383, an increase of
$112,262 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 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, 2010, the City of Clermont’s Sanitation
Fund reported total net assets of $3,858,362, an increase of $468,606 in comparison with the
prior year, which is primarily due to surplus operating income.
General Fund Budgetary Highlights
During the year there was a $1,411,406 increase in appropriations between the original and
final amended budget. Following are the main components of the increase:
• $247,830 for upfront costs associated with the transfer of police dispatching services to the
Sheriff’s Office. The analysis of the consolidation of dispatch services was not complete
until after the beginning of the fiscal year and in order to complete the transfer in fiscal year
2011, preparation needed to begin in 2010.
• $456,157 for increased contributions to the Police and Fire Pension Funds. The
actuarial reports, which were not completed until after the beginning of the fiscal year,
resulted in a much higher than anticipated increase in pension contributions.
• $15,759 for the purchase of software for fire vehicle laptop computers. Funding was
requested in order to take advantage of early implementation discounts for a software
interface with the CAD and navigation systems used by Lake-Sumter EMS, our dispatch
provider.
• $247,163 for expenditures associated with several public safety grants. These grants
had not yet been awarded at the start of the fiscal year.
• $210,000 for a contribution to the National Training Center (NTC) for construction of
permanent stadium seating as well as fencing and irrigation for a fifth field. This request
was presented to City Council early in the fiscal year in an effort to attract more
tournaments and boost tourism by adding the permanent seating and fifth field
necessary for larger events. The timing of the project allowed the NTC to solicit
tournaments for the upcoming season.
• $103,381 for expenditures associated with the City’s 125th Anniversary Celebration.
These expenditures were partially offset by donations as well as vendor booth rentals,
profit sharing and merchandise sales. Planning and scope of this event was not
determined until after the beginning of the fiscal year.
10
• $22,895 for expenditures associated with the completion of the historic village project.
Additional items were completed in preparation for the City’s anniversary celebration.
• $8,000 for architectural services for the Jenkins Replacement Facility project. Due to
repair and maintenance issues, City Council requested that a study be completed to
determine whether the facility should be replaced rather than renovated as originally
planned.
General Fund revenue increases totaling $234,159 were due to the following:
• $191,657 to budget the receipt of several public safety grants, which were awarded after
the beginning of the fiscal year.
• $42,502 to budget the receipt of various donations for the City’s 125th Anniversary
Celebration. Additional resources were solicited in order to help promote and fund this
one-time event.
Even considering the above noted increases in General Fund budgeted appropriations, actual
expenditures were less than budgeted by $884,796. In addition, actual revenues exceeded
actual expenditures by $529,168.
Capital Assets
The following is a summary of the City of Clermont’s capital assets, net of depreciation for
governmental and business-type activities for the current year with a comparison to the prior
year. Additional information on the City of Clermont’s capital assets can be found in Note 7 on
pages 45 - 46 of this report.
2009-102008-092009-102008-092009-102008-09
Land 22,128,032$ 21,776,552$ 1,457,973$ 1,457,973$ 23,586,005$ 23,234,525$
Buildings 7,723,916 6,025,822 76 228 7,723,992 6,026,050
Improvements/ Infrastructure 4,206,113 4,801,673 60,468,734 53,856,205 64,674,847 58,657,878
Machinery and Equipment1,992,930 2,708,533 1,579,181 1,819,305 3,572,111 4,527,838
Intangibles 324,821 410,925 - 28,722 324,821 439,647
Construction in progress 1,480,988 2,747,317 7,667,691 13,620,309 9,148,679 16,367,626
Total 37,856,800$ 38,470,822$ 71,173,655$ 70,782,742$ 109,030,455$ 109,253,564$
CITY OF CLERMONT’S Capital Assets
(net of depreciation)
Governmental ActivitiesBusiness-type Activities Total
The City of Clermont’s investment in capital assets for its governmental and business-type
activities as of September 30, 2010, amounts to $109,030,455 (net of accumulated
depreciation). This investment in capital assets includes land, buildings,
improvements/infrastructure, machinery and equipment and intangibles. The total change in the
City’s investment in capital assets for the current fiscal year was ($223,109). Major capital
asset events during the current fiscal year included the following:
• Completion of the Historic Village – $183,653 was added and prior years Construction in
Progress in the amount of $120,528 was moved to Infrastructure/Improvements for a
total project cost of $304,181.
• Completion of the Fire Station #3 – $29,636 was added and prior years Construction in
Progress in the amount of $1,772,773 was moved to Infrastructure/Improvements for a
total project cost of $1,802,409.
• Completion of the Sunnyside Drive Drainage – $18,403 was added and prior years
Construction in Progress in the amount of $373,475 was moved to
Infrastructure/Improvements for a total project cost of $391,878.
11
• Completion of the Greater Hills Water Treatment Plant – $35,931 was added and prior
years Construction in Progress in the amount of $8,089,745 was moved for a total
project cost of $8,125,706.
• Construction in progress includes construction of the West Side Force Main, the
Equilization Wastewater Basin, Lift Station Improvements, 3rd Street Improvements,
Waterfront Pavilion construction, West Park construction, Water and Sewer Security
Improvements and Reclaim Water System Expansion.
Debt Administration
The following is a summary of the City’s long-term debt for governmental and business-type
activity for the current year with a comparison to the prior year. Additional information on long-
term debt can be found in Note 8 on pages 47 - 49 of this report.
2009-102008-092009-102008-092009-102008-09
Revenue bonds payable4,040,000$ 4,495,000$ 16,640,000$ 16,655,000$ 20,680,000$ 21,150,000$
Notes payable- 38,077 - - - 38,077
Total 4,040,000$ 4,533,077$ 16,640,000$ 16,655,000$ 20,680,000$ 21,188,077$
CITY OF CLERMONT’S Outstanding Debt
Governmental ActivitiesBusiness-type Activities Total
At the end of the current fiscal year, the City of Clermont had total debt outstanding of
$20,680,000. This debt includes revenue bonds payable. During fiscal year 2009-2010, the
City paid off a note issued in 1999 for the purchase of a fire truck.
Economic Factors and Next Year’s Budgets and Rates
• The annual unemployment rate for Lake County in 2010 was 12.4%, which is an
increase of 0.98% over 2009. It is higher than both the state’s average of 11.9% and the
national average of 9.6%.
• The taxable value of commercial and residential property decreased 14.0% from fiscal
year 2008-09 to fiscal year 2009-10 due to declining home values and foreclosures.
• Population increased 18.8% from 24,199 in 2009 to 28,742 in 2010.
As of September 30, 2010, the General Fund unreserved fund balance was $11,357,752. The
City appropriated $1,521,802 of this amount for spending in the 2010-11 fiscal year budget.
The same property tax rate is included for the General Fund for the 2010-11 fiscal year budget.
However, property tax revenue is projected to be nearly $835,397 lower in fiscal year 2010-11
due to continued declining home values and foreclosures.
No utility rate adjustments were proposed for the 2010-11 fiscal year with the exception of the
sewer rate structure. The sewer rates increased 0.56% on October 1, 2010 pursuant to a
required adjustment in accordance with the Florida Public Service Commission Annual Deflator
Index previously adopted by the Clermont City Council.
Requests for Information
This financial report is designed to provide a general overview of the City of Clermont’s finances
for all those with an interest in the government’s finances. Questions concerning any of the
information should be addressed to the office of the Administrative Services Director, City of
Clermont, P.O. Box 120219, Clermont, Florida 34712.
12
BASIC FINANCIAL STATEMENTS
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET ASSETS
September 30, 2010
Primary Government
Governmental
Activities
Business-type
Activities Total
Assets:
Cash and cash equivalents 12,388,712$ 9,173,708$ 21,562,420$
Investments 11,496,873 10,904,164 22,401,037
Receivables, net 304,678 1,230,378 1,535,056
Inventories 13,859 410,110 423,969
Due from other governments 363,311 1,370 364,681
Internal balances 122,610 (122,610) -
Prepaid costs 232,290 118,223 350,513
Restricted assets:
Cash and cash equivalents - 1,377,693 1,377,693
Investments - 7,655,546 7,655,546
Interest receivable 94,690 84,022 178,712
Bond issuance costs - 382,168 382,168
Capital assets not being depreciated 23,609,0209,125,664 32,734,684
Capital assets being depreciated, net of
accumulated depreciation 14,247,780 62,047,991 76,295,771
Total assets 62,873,823 102,388,427 165,262,250
Liabilities:
Accounts payable and accrued expenses 2,925,4701,578,5444,504,014
Noncurrent liabilities:
Due within one year 530,286 561,218 1,091,504
Due in more than one year 4,919,675 16,008,877 20,928,552
Total liabilities 8,375,431 18,148,639 26,524,070
Net Assets:
Invested in capital assets, net of related debt 33,816,797 55,539,792 89,356,589
Restricted for:
Capital improvements 3,935,812 17,293,091 21,228,903
Community redevelopment 1,472,734 - 1,472,734
Debt service 488,330 - 488,330
Perpetual care:
Nonexpendable 796,860 - 796,860
Unrestricted 13,987,859 11,406,905 25,394,764
Total net assets 54,498,392$ 84,239,788$ 138,738,180$
The accompanying Notes to Financial Statements are an integral part of this statement.
13
CI
T
Y
O
F
C
L
E
R
M
O
N
T
,
F
L
O
R
I
D
A
ST
A
T
E
M
E
N
T
O
F
A
C
T
I
V
I
T
I
E
S
Fu
n
c
t
i
o
n
s
/
P
r
o
g
r
a
m
s
:
Ex
p
e
n
s
e
s
Ch
a
r
g
e
s
f
o
r
Se
r
v
i
c
e
s
Op
e
r
a
t
i
n
g
G
r
a
n
t
s
an
d
C
o
n
t
r
i
b
u
t
i
o
n
s
Ca
p
i
t
a
l
G
r
a
n
t
s
an
d
Co
n
t
r
i
b
u
t
i
o
n
s
Go
v
e
r
n
m
e
n
t
a
l
Ac
t
i
v
i
t
i
e
s
Bu
s
i
n
e
s
s
-
t
y
p
e
ActivitiesTotal
Go
v
e
r
n
m
e
n
t
a
l
A
c
t
i
v
i
t
i
e
s
:
Ge
n
e
r
a
l
g
o
v
e
r
n
m
e
n
t
4,
2
8
6
,
7
1
3
$
1,
8
5
6
,
8
0
7
$
-
$
-
$
(2
,
4
2
9
,
9
0
6
)
$
-
$
(2,429,906)$
P
u
b
l
i
c
s
a
f
e
t
y
12
,
4
5
8
,
8
1
1
6
6
5
,
5
1
2
8
4
0
,
2
9
2
4
1
,
8
7
5
(
1
0
,
9
1
1
,
1
3
2
)
-
(
1
0
,
9
1
1
,
1
3
2
)
Ph
y
s
i
c
a
l
e
n
v
i
r
o
n
m
e
n
t
31
8
,
8
7
8
-
-
-
(3
1
8
,
8
7
8
)
-
(318,878)
Tr
a
n
s
p
o
r
t
a
t
i
o
n
/
p
u
b
l
i
c
w
o
r
k
s
1,
7
6
7
,
7
3
1
-
32
1
,
9
6
3
92
,
3
2
5
(1
,
3
5
3
,
4
4
3
)
-
(1,353,443)
Ec
o
n
o
m
i
c
e
n
v
i
r
o
n
m
e
n
t
50
,
3
2
8
-
-
-
(5
0
,
3
2
8
)
-
(50,328)
Cu
l
t
u
r
e
a
n
d
r
e
c
r
e
a
t
i
o
n
2,
0
5
5
,
5
6
8
87
1
,
6
5
2
-
-
(1
,
1
8
3
,
9
1
6
)
-
(1,183,916)
In
t
e
r
e
s
t
o
n
l
o
n
g
-
t
e
r
m
d
e
b
t
17
4
,
8
5
8
-
-
-
(1
7
4
,
8
5
8
)
-
(174,858)
To
t
a
l
g
o
v
e
r
n
m
e
n
t
a
l
a
c
t
i
v
i
t
i
e
s
21
,
1
1
2
,
8
8
7
3,
3
9
3
,
9
7
1
1,
1
6
2
,
2
5
5
13
4
,
2
0
0
(1
6
,
4
2
2
,
4
6
1
)
-
(16,422,461)
Bu
s
i
n
e
s
s
-
t
y
p
e
a
c
t
i
v
i
t
i
e
s
Wa
t
e
r
4,
3
1
6
,
1
7
0
4
,
8
1
7
,
0
7
6
-
5
3
1
,
8
4
8
-
1
,
0
3
2
,
7
5
4
1
,
0
3
2
,
7
5
4
Se
w
e
r
5,
9
2
7
,
5
2
9
4
,
8
5
2
,
1
4
7
-
1
,
0
1
1
,
7
9
0
-
(
6
3
,
5
9
2
)
(
6
3
,
5
9
2
)
Sa
n
i
t
a
t
i
o
n
2,
1
6
8
,
7
9
4
2,
6
1
3
,
3
7
5
-
-
-
4
4
4
,
5
8
1
444,581
St
o
r
m
w
a
t
e
r
84
7
,
9
6
3
8
2
9
,
2
5
0
-
-
-
(
1
8
,
7
1
3
)
(
1
8
,
7
1
3
)
To
t
a
l
b
u
s
i
n
e
s
s
-
t
y
p
e
a
c
t
i
v
i
t
i
e
s
13
,
2
6
0
,
4
5
6
13
,
1
1
1
,
8
4
8
-
1
,
5
4
3
,
6
3
8
-
1
,
3
9
5
,
0
3
0
1,395,030
To
t
a
l
p
r
i
m
a
r
y
g
o
v
e
r
n
m
e
n
t
34
,
3
7
3
,
3
4
3
$
16
,
5
0
5
,
8
1
9
$
1,
1
6
2
,
2
5
5
$
1,
6
7
7
,
8
3
8
$
(1
6
,
4
2
2
,
4
6
1
)
1,395,030
(15,027,431)
Ge
n
e
r
a
l
r
e
v
e
n
u
e
s
:
Pr
o
p
e
r
t
y
t
a
x
e
s
6,
8
4
4
,
0
8
4
-
6,844,084
Fr
a
n
c
h
i
s
e
f
e
e
s
2,
3
7
3
,
0
9
6
-
2,373,096
U
t
i
l
i
t
y
t
a
x
e
s
2,
5
5
8
,
2
8
2
-
2,558,282
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
-
u
n
r
e
s
t
r
i
c
t
e
d
4,
5
0
3
,
4
1
6
-
4,503,416
Un
r
e
s
t
r
i
c
t
e
d
i
n
v
e
s
t
m
e
n
t
e
a
r
n
i
n
g
s
37
8
,
7
9
1
359,711
738,502
Mi
s
c
e
l
l
a
n
e
o
u
s
14
6
,
3
8
7
-
146,387
Tr
a
n
s
f
e
r
s
44
2
,
7
8
2
(442,782)
-
To
t
a
l
g
e
n
e
r
a
l
r
e
v
e
n
u
e
s
a
n
d
t
r
a
n
s
f
e
r
s
17
,
2
4
6
,
8
3
8
(83,071)
17,163,767
Ch
a
n
g
e
i
n
n
e
t
a
s
s
e
t
s
82
4
,
3
7
7
1,311,959
2,136,336
Ne
t
a
s
s
e
t
s
-
b
e
g
i
n
n
i
n
g
54
,
0
7
2
,
0
6
0
83,071,784
137,143,844
Adj
u
s
t
m
e
n
t
-
c
h
a
n
g
e
i
n
a
c
c
o
u
n
t
i
n
g
p
r
i
n
c
i
p
l
e
(3
9
8
,
0
4
5
)
(143,955)
(542,000)
Ne
t
a
s
s
e
t
s
-
e
n
d
i
n
g
54
,
4
9
8
,
3
9
2
$
84,239,788
$
138,738,180$
Ye
a
r
E
n
d
e
d
S
e
p
t
e
m
b
e
r
3
0
,
2
0
1
0
Pr
o
g
r
a
m
R
e
v
e
n
u
e
C
h
a
n
g
e
s
i
n
N
e
t
A
s
s
e
t
s
Pr
i
m
a
r
y
G
o
v
e
r
n
m
e
n
t
Ne
t
(
E
x
p
e
n
s
e
)
R
e
v
e
n
u
e
a
n
d
Th
e
a
c
c
o
m
p
a
n
y
i
n
g
N
o
t
e
s
t
o
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
r
e
a
n
i
n
t
e
g
r
a
l
p
a
r
t
o
f
t
h
i
s
s
t
a
t
e
m
e
n
t
.
14
General
Community
Redevelopment
Special Revenue
Other
Governmental
Funds
Total
Governmental
Funds
Assets:
Cash and cash equivalents 1,374,255$ 1,472,721$ 9,482,736$ 12,329,712$
Investments 11,496,873 - - 11,496,873
Receivables, net 392,485 - 6,855 399,340
Inventories, at cost 13,859 - - 13,859
Due from other funds 230,957 - - 230,957
Due from other governments 241,013 - 122,298 363,311
Prepaid costs 231,924 13 353 232,290
Total assets 13,981,366$ 1,472,734$ 9,612,242$ 25,066,342$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 1,728,308$ -$ 505,794$ 2,234,102$
Deferred revenue 128,054 - - 128,054
Accrued liabilities 521,469 - 4,992 526,461
Total liabilities 2,377,831 - 510,786 2,888,617
Fund balances:
Reserved for:
Inventories and prepaid costs 245,783 - - 245,783
Community redevelopment - 1,472,734 - 1,472,734
Debt service - - 488,330 488,330
Perpetual care - - 796,860 796,860
Unreserved, reported in:
General fund 11,357,752 - - 11,357,752
Special revenue funds - - 4,838,644 4,838,644
Capital projects funds - - 2,977,622 2,977,622
Total fund balances 11,603,535 1,472,734 9,101,456 22,177,725
Total liabilities and
fund balances 13,981,366$ 1,472,734$ 9,612,242$
37,856,800
(56,971)
128,054
(157,255)
(5,449,961)
54,498,392$
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.
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds.
Net Assets of Governmental Activities in the Statement of Net Assets
CITY OF CLERMONT, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2010
Amounts reported for governmental activities in the Statement of Net
Assets are different because:
Other long-term assets are not available to pay for current period
expenditures and, therefore are not reported in the funds
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.
Accrued interest payable is not due in the current period and therefore is
not reported in the funds.
The accompanying Notes to Financial Statements are an integral part of this statement.
15
General
Community
Redevelopment
Special Revenue
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:
Taxes 11,491,000$ 284,462$ -$ 11,775,462$
Licenses and permits 212,627 - 465,537 678,164
Intergovernmental revenues 3,953,179 - 1,780,177 5,733,356
Charges for services 977,169 - 58,853 1,036,022
Fines and forfeitures 188,428 - - 188,428
Impact fees/special assessments - - 1,130,971 1,130,971
Investment earnings 311,752 9,001 58,038 378,791
Miscellaneous 445,665 - 76,250 521,915
Total revenues 17,579,820 293,463 3,569,826 21,443,109
Expenditures:
Current:
General government 3,152,768 - 928,884 4,081,652
Public safety 11,106,772 - 104,929 11,211,701
Physical environment 308,946 - - 308,946
Transportation 1,082,810 - 536,949 1,619,759
Economic environment 48,903 1,425 - 50,328
Culture and recreation 1,707,459 - 170,649 1,878,108
Debt Service:
Principal retirement - - 493,077 493,077
Interest and fiscal charges - - 180,720 180,720
Capital Outlay:
Public safety - - 30,427 30,427
Culture and recreation - - 612,645 612,645
Total expenditures 17,407,658 1,425 3,058,280 20,467,363
Excess (Deficiency) of Revenues
Over Expenditures 172,162 292,038 511,546 975,746
Other Financing Sources (Uses):
Transfers in 447,648 - 1,639,962 2,087,610
Transfers out (90,642) - (1,554,186) (1,644,828)
Total other financing sources (uses)357,006 - 85,776 442,782
Net Change in Fund Balances 529,168 292,038 597,322 1,418,528
Fund Balances - Beginning 11,074,367 1,180,696 8,504,134 20,759,197
Fund Balances - Ending 11,603,535$ 1,472,734$ 9,101,456$ 22,177,725$
Year Ended September 30, 2010
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
The accompanying Notes to Financial Statements are an integral part of this statement.
16
CITY OF CLERMONT, FLORIDA
Net change in fund balances - total governmental funds:1,418,528$
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.(543,581)
The net effect of sales of capital assets is to decrease net assets.(70,441)
Governmental funds do not present revenues that are not available to pay current
obligations. In contrast, such revenues are reported in the Statement of Activities
when earned. 61,437
Revenue reported in the funds must be eliminated from the statement of activities
since revenue was recognized in a prior year (10,064)
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 repayments exceeded proceeds. 493,077
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.(418,238)
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.(106,341)
Change in net assets of governmental activities 824,377$
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Year Ended September 30, 2010
The accompanying Notes to Financial Statements are an integral part of this statement.
17
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 10,506,069$ 10,506,069$ 11,491,000$ 984,931$
Licenses and permits 211,900 211,900 212,627 727
Intergovernmental revenues 3,340,895 3,532,552 3,555,685 23,133
Charges for services 948,217 948,217 977,169 28,952
Fines and forfeitures 179,000 179,000 188,428 9,428
Investment earnings 225,000 225,000 311,752 86,752
Miscellaneous 266,462 308,964 445,665 136,701
Total revenues 15,677,543 15,911,702 17,182,326 1,270,624
Expenditures:
Current:
General government:
City council 27,233 27,233 27,216 17
City clerk 201,596 201,596 197,367 4,229
City manager 444,193 444,193 439,916 4,277
Administrative services 1,174,750 1,174,750 1,113,571 61,179
Legal services 113,000 113,000 77,778 35,222
Planning & zoning 579,258 579,258 578,503 755
Engineering 154,073 154,073 152,639 1,434
Other general government 228,935 573,211 565,778 7,433
2,923,038 3,267,314 3,152,768 114,546
Public Safety:
Law enforcement 5,748,862 6,384,678 6,003,142 381,536
Fire control 4,499,699 4,924,513 4,706,136 218,377
10,248,561 11,309,191 10,709,278 599,913
Physical environment 315,778315,778308,946 6,832
Transportation 1,200,3421,206,8421,082,810124,032
Economic environment 65,185 65,185 48,903 16,282
Culture and recreation 1,730,650 1,730,650 1,707,459 23,191
Total expenditures 16,483,554 17,894,960 17,010,164 884,796
GENERAL FUND
Year Ended September 30, 2010
CITY OF CLERMONT, FLORIDA
The accompanying Notes to Financial Statements are an integral part of this statement.
18
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL (CONTINUED)
Budgeted Amounts
Actual
Amounts,
Budgetary
Basis
Variance with
Final Budget -
Positive
(Negative)
Original Final
Over Expenditures (806,011) (1,983,258) 172,162 2,155,420
Other Financing Sources (Uses):
Transfers in 450,000 450,000 447,648 (2,352)
Transfers out (75,710) (90,643) (90,642) 1
Total other financing sources (uses)374,290 359,357 357,006 (2,351)
Net Change in Fund Balance (431,721) (1,623,901) 529,168 2,153,069
Fund Balance - Beginning 11,074,367 11,074,367 11,074,367 -
Fund Balance - Ending 10,642,646$ 9,450,466$ 11,603,535$ 2,153,069$
Excess (Deficiency) of Revenues
CITY OF CLERMONT, FLORIDA
GENERAL FUND
Year Ended September 30, 2010
The accompanying Notes to Financial Statements are an integral part of this statement.
19
20
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts
Actual
Amounts
Variance with Final
Budget - Positive
(Negative)
OriginalFinal
Revenues:
Taxes285,440$ 285,440$ 284,462$ (978)$
Investment earnings 5,500 5,500 9,001 3,501
Total revenues 290,940 290,940 293,463 2,523
Expenditures:
Economic environment:
Economic development 1,500,5001,500,500 1,425 1,499,075
Total expenditures 1,500,500 1,500,500 1,425 1,499,075
Excess (Deficiency) of Revenues
Over Expenditures (1,209,560) (1,209,560) 292,038 1,501,598
Net Change in Fund Balances (1,209,560) (1,209,560) 292,038 1,501,598
Fund Balances - Beginning 1,180,696 1,180,696 1,180,696 -
Fund Balances - Ending (28,864)$ (28,864)$ 1,472,734$ 1,501,598$
CITY OF CLERMONT, FLORIDA
COMMUNITY REDEVELOPMENT SPECIAL REVENUE FUND
Year Ended September 30, 2010
The accompanying Notes to Financial Statements are an integral part of this statement.
21
Governmental Activities-
Wa
t
e
r
S
e
w
e
r
S
a
n
i
t
a
t
i
o
n
S
t
o
r
m
w
a
t
e
r
T
o
t
a
l
Internal Service Fund
As
s
e
t
s
:
Cu
r
r
e
n
t
a
s
s
e
t
s
:
Ca
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
1,
2
7
8
,
2
3
8
$
3,
2
3
8
,
3
8
5
$
2,
7
9
5
,
2
6
4
$
1,
8
6
1
,
8
2
1
$
9,
1
7
3
,
7
0
8
$
59,000$
In
v
e
s
t
m
e
n
t
s
10
,
9
0
4
,
1
6
4
-
-
-
1
0
,
9
0
4
,
1
6
4
-
Re
s
t
r
i
c
t
e
d
c
a
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
70
1
,
7
3
8
67
5
,
9
5
5
-
-
1
,
3
7
7
,
6
9
3
-
Ac
c
o
u
n
t
s
r
e
c
e
i
v
a
b
l
e
,
n
e
t
46
5
,
6
0
4
44
5
,
7
7
9
24
1
,
1
4
5
77
,
8
5
0
1,
2
3
0
,
3
7
8
28
Re
c
e
i
v
a
b
l
e
s
f
r
o
m
o
t
h
e
r
g
o
v
e
r
n
m
e
n
t
s
-
-
1,
3
7
0
-
1,370
-
In
v
e
n
t
o
r
i
e
s
38
1
,
5
7
4
28
,
5
3
6
-
-
4
1
0
,
1
1
0
-
Pr
e
p
a
i
d
e
x
p
e
n
s
e
s
42
,
0
0
0
51
,
5
2
9
19
,
0
6
4
5,
6
3
0
11
8
,
2
2
3
-
To
t
a
l
c
u
r
r
e
n
t
a
s
s
e
t
s
13
,
7
7
3
,
3
1
8
4,
4
4
0
,
1
8
4
3,
0
5
6
,
8
4
3
1,
9
4
5
,
3
0
1
23
,
2
1
5
,
6
4
6
59,028
No
n
-
c
u
r
r
e
n
t
a
s
s
e
t
s
:
R
e
s
t
r
i
c
t
e
d
i
n
v
e
s
t
m
e
n
t
s
-
7
,
6
5
5
,
5
4
6
-
-
7
,
6
5
5
,
5
4
6
-
I
n
t
e
r
e
s
t
r
e
c
e
i
v
a
b
l
e
63
,
4
8
8
20
,
5
3
4
-
-
84
,
0
2
2
-
B
o
n
d
i
s
s
u
a
n
c
e
c
o
s
t
s
13
7
,
5
8
1
24
4
,
5
8
7
-
-
3
8
2
,
1
6
8
-
Ca
p
i
t
a
l
a
s
s
e
t
s
:
La
n
d
,
b
u
i
l
d
i
n
g
s
a
n
d
e
q
u
i
p
m
e
n
t
26
,
4
2
8
,
5
0
5
49
,
7
3
0
,
1
8
5
2,
2
6
2
,
6
1
0
3,
6
1
9
,
7
7
3
82
,
0
4
1
,
0
7
3
-
Co
n
s
t
r
u
c
t
i
o
n
i
n
p
r
o
g
r
e
s
s
1,
1
7
3
,
8
4
9
6,
4
2
0
,
2
6
5
-
73
,
5
7
7
7,
6
6
7
,
6
9
1
-
Le
s
s
a
c
c
u
m
u
l
a
t
e
d
d
e
p
r
e
c
i
a
t
i
o
n
(6
,
2
3
7
,
1
6
7
)
(1
0
,
2
1
6
,
4
3
0
)
(1
,
2
7
7
,
0
5
4
)
(8
0
4
,
4
5
8
)
(1
8
,
5
3
5
,
1
0
9
)
-
To
t
a
l
c
api
t
a
l
a
s
s
e
t
s
(
n
e
t
o
f
ac
c
u
m
u
l
a
t
e
d
d
e
p
r
e
c
i
a
t
i
o
n
)
21
,
3
6
5
,
1
8
7
45
,
9
3
4
,
0
2
0
98
5
,
5
5
6
2,
8
8
8
,
8
9
2
71
,
1
7
3
,
6
5
5
-
To
t
a
l
n
o
n
-
c
u
r
r
e
n
t
a
s
s
e
t
s
21
,
5
6
6
,
2
5
6
53
,
8
5
4
,
6
8
7
98
5
,
5
5
6
2,
8
8
8
,
8
9
2
79
,
2
9
5
,
3
9
1
-
To
t
a
l
a
s
s
e
t
s
35
,
3
3
9
,
5
7
4
58
,
2
9
4
,
8
7
1
4,
0
4
2
,
3
9
9
4,
8
3
4
,
1
9
3
10
2
,
5
1
1
,
0
3
7
59,028
CI
T
Y
O
F
C
L
E
R
M
O
N
T
,
F
L
O
R
I
D
A
ST
A
T
E
M
E
N
T
O
F
N
E
T
A
S
S
E
T
S
PR
O
P
R
I
E
T
A
R
Y
F
U
N
D
S
Se
p
t
e
m
b
e
r
3
0
,
2
0
1
0
Bu
s
i
n
e
s
s
-
t
y
p
e
A
c
t
i
v
i
t
i
e
s
-
E
n
t
e
r
p
r
i
s
e
F
u
n
d
s
Th
e
a
c
c
o
m
p
a
n
y
i
n
g
N
o
t
e
s
t
o
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
r
e
a
n
i
n
t
e
g
r
a
l
p
a
r
t
o
f
t
h
i
s
s
t
a
t
e
m
e
n
t
22
Li
a
b
i
l
i
t
i
e
s
:
Cu
r
r
e
n
t
l
i
a
b
i
l
i
t
i
e
s
:
Ac
c
o
u
n
t
s
p
a
y
a
b
l
e
36
4
,
3
7
2
38
8
,
6
4
9
55
,
8
8
8
25
,
9
3
8
83
4
,
8
4
7
107,936
Sa
l
a
r
i
e
s
p
a
y
a
b
l
e
84
,
5
3
1
70
,
5
9
0
37
,
4
0
4
22
,
2
1
9
21
4
,
7
4
4
-
Ac
c
r
u
e
d
i
n
t
e
r
e
s
t
p
a
y
a
b
l
e
74
,
6
7
8
13
2
,
7
6
2
-
-
2
0
7
,
4
4
0
-
Co
m
p
e
n
s
a
t
e
d
a
b
s
e
n
c
e
s
12
,
2
8
4
7,
8
4
5
2,
4
1
5
3,
6
7
4
26
,
2
1
8
-
Du
e
t
o
o
t
h
e
r
f
u
n
d
s
-
-
-
-
-
230,957
Pa
y
a
b
l
e
t
o
o
t
h
e
r
g
o
v
e
r
n
m
e
n
t
s
-
-
-
-
-
-
Ot
h
e
r
a
c
c
r
u
e
d
e
x
p
e
n
s
e
s
32
1
,
5
1
3
-
-
-
3
2
1
,
5
1
3
-
Re
v
e
n
u
e
b
o
n
d
s
p
a
y
a
b
l
e
-
c
u
r
r
e
n
t
19
2
,
6
0
0
34
2
,
4
0
0
-
-
5
3
5
,
0
0
0
-
To
t
a
l
c
u
r
r
e
n
t
l
i
a
b
i
l
i
t
i
e
s
1,
04
9
,
9
7
8
94
2
,
2
4
6
95
,
7
0
7
51
,
8
3
1
2,
1
3
9
,
7
6
2
338,893
No
n
-
c
u
r
r
e
n
t
l
i
a
b
i
l
i
t
i
e
s
:
Co
m
p
e
n
s
a
t
e
d
a
b
s
e
n
c
e
s
11
0
,
5
5
1
70
,
6
0
0
21
,
7
3
1
33
,
0
6
9
23
5
,
9
5
1
-
Ot
h
e
r
p
o
s
t
e
m
p
l
o
y
m
e
n
t
b
e
n
e
f
i
t
s
13
0
,
8
9
1
73
,
7
4
3
66
,
5
9
9
20
,
6
6
2
29
1
,
8
9
5
-
Re
v
e
n
u
e
b
o
n
d
s
p
a
y
a
b
l
e
5,
5
7
9
,
1
3
2
9,
9
0
1
,
8
9
9
-
-
1
5
,
4
8
1
,
0
3
1
-
To
t
a
l
n
o
n
-
c
u
r
r
e
n
t
l
i
a
b
il
i
t
i
e
s
5,
82
0
,
5
7
4
10
,
0
4
6
,
2
4
2
88
,
3
3
0
53
,
7
3
1
16
,
0
0
8
,
8
7
7
-
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
6,
87
0
,
5
5
2
10
,
9
8
8
,
4
8
8
18
4
,
0
3
7
10
5
,
5
6
2
18
,
1
4
8
,
6
3
9
338,893
Net
A
s
s
e
t
s
:
In
v
e
s
t
e
d
i
n
c
a
p
i
t
a
l
a
s
s
e
t
s
,
n
e
t
o
f
r
e
l
a
t
e
d
d
e
b
t
1
5
,
7
3
1
,
0
3
6
35
,
9
3
4
,
3
0
8
98
5
,
5
5
6
2,
8
8
8
,
8
9
2
55
,
5
3
9
,
7
9
2
-
Re
s
t
r
i
c
t
e
d
f
o
r
c
a
p
i
t
a
l
i
m
p
r
o
v
e
m
e
n
t
s
8,
3
7
8
,
3
7
4
8,
9
1
4
,
7
1
7
-
-
1
7
,
2
9
3
,
0
9
1
-
Un
r
e
s
t
r
i
c
t
e
d
4,
3
5
9
,
6
1
2
2,
4
5
7
,
3
5
8
2,
8
7
2
,
8
0
6
1,
8
3
9
,
7
3
9
11
,
5
2
9
,
5
1
5
(279,865)
To
t
a
l
n
e
t
a
s
s
e
t
s
28
,
4
6
9
,
0
2
2
$
47
,
3
0
6
,
3
8
3
$
3,
8
5
8
,
3
6
2
$
4,
7
2
8
,
6
3
1
$
84
,
3
6
2
,
3
9
8
(279,865)$
(1
2
2
,
6
1
0
)
To
t
a
l
n
e
t
a
s
s
e
t
s
p
e
r
G
o
v
e
r
n
m
e
n
t
-
W
i
d
e
f
i
n
a
n
c
i
a
l
s
t
a
t
e
m
e
n
t
s
84
,
2
3
9
,
7
8
8
$
Th
e
a
s
s
e
t
s
a
n
d
l
i
a
b
il
i
t
i
e
s
o
f
c
e
r
t
a
i
n
i
n
t
e
r
n
a
l
s
e
r
v
i
c
e
f
un
d
s
a
r
e
n
o
t
i
n
c
l
u
d
e
d
i
n
t
h
e
f
u
n
d
f
i
n
a
n
c
i
a
l
st
a
t
e
m
e
n
t
,
b
u
t
a
r
e
i
n
c
l
u
d
e
d
i
n
t
h
e
B
u
s
i
n
e
s
s
A
c
t
i
v
i
t
i
e
s
o
f
t
h
e
S
t
a
t
e
m
e
n
t
o
f
N
e
t
A
s
s
e
t
s
.
Th
e
a
c
c
o
m
p
a
n
y
i
n
g
N
o
t
e
s
t
o
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
r
e
a
n
i
n
t
e
g
r
a
l
p
a
r
t
o
f
t
h
i
s
s
t
a
t
e
m
e
n
t
23
24
CI
T
Y
O
F
C
L
E
R
M
O
N
T
,
F
L
O
R
I
D
A
ST
A
T
E
M
E
N
T
O
F
R
E
V
E
N
U
E
S
,
E
X
P
E
N
S
E
S
A
N
D
C
H
A
N
G
E
S
I
N
F
U
N
D
N
E
T
A
S
S
E
T
S
PR
O
P
R
I
E
T
A
R
Y
F
U
N
D
S
Governmental Activities-
Wa
t
e
r
Se
w
e
r
Sa
n
i
t
a
t
i
o
n
S
t
o
r
m
w
a
t
e
r
TotalInternal Service Fund
Op
e
r
a
t
i
n
g
R
e
v
e
n
u
e
s
:
Ch
a
r
ges
f
o
r
s
e
r
v
i
c
e
s
4,
5
0
8
,
0
2
0
$
4,
8
5
2
,
1
4
7
$
2,
6
0
9
,
3
0
4
$
82
8
,
7
6
1
$
12,798,232
$
2,706,089$
Mi
s
c
e
l
l
a
n
e
o
u
s
30
9
,
0
5
6
-
4,
0
7
1
4
8
9
313,616
159,212
To
t
a
l
o
p
e
r
a
t
i
n
g r
e
v
e
n
u
e
s
4,
8
1
7
,
0
7
6
4
,
8
5
2
,
1
4
7
2,
6
1
3
,
3
7
5
82
9
,
2
5
0
13,111,848
2,865,301
Op
e
r
a
t
i
n
g
E
x
p
e
n
s
e
s
:
Pe
r
s
o
n
a
l
s
e
r
v
i
c
e
s
1,
6
7
4
,
9
7
1
1
,
3
4
8
,
5
7
5
78
4
,
7
4
0
41
9
,
4
6
8
4,227,754
-
Ut
i
l
i
t
i
e
s
50
7
,
2
7
0
7
1
8
,
7
7
6
51
6
-
1,226,562
-
Du
m
p
f
e
e
s
-
15
2
,
5
8
1
51
1
,
7
7
6
26
,
6
4
7
691,004
-
Adm
i
n
i
s
t
r
a
t
i
v
e
s
e
r
v
i
c
e
s
33
1
,
1
3
3
3
1
0
,
9
0
3
14
6
,
6
4
6
38
,
3
6
0
827,042
-
Re
p
a
i
r
s
a
n
d
m
a
i
n
t
e
n
a
n
c
e
57
5
,
3
7
3
2
7
4
,
2
8
9
13
3
,
6
1
5
24
,
3
2
6
1,007,603
-
De
p
r
e
c
i
a
t
i
o
n
a
n
d
a
m
o
r
t
i
z
a
t
i
o
55
7
,
8
4
0
1,
9
1
8
,
0
7
6
29
1
,
9
8
3
27
4
,
0
9
5
3,041,994
-
Pr
o
f
e
s
s
i
o
n
a
l
s
e
r
v
i
c
e
s
79
,
4
6
8
3
7
6
,
3
5
5
2,
6
4
6
2
8
,
4
7
6
486,945
-
In
s
u
r
a
n
c
e
c
l
a
i
m
s
a
n
d
e
x
p
e
n
s
e
s
82
,
8
9
5
1
7
0
,
2
0
7
36
,
5
4
9
5,
5
2
0
295,171
3,010,101
Ot
h
e
r
s
u
p
p
l
i
e
s
a
n
d
e
x
p
e
n
s
e
s
22
2
,
4
5
7
17
3
,
8
4
3
25
0
,
6
6
6
28
,
3
4
9
675,315
-
To
t
a
l
o
p
e
r
a
t
i
n
g e
x
p
e
n
s
e
s
4,
0
3
1
,
4
0
7
5
,
4
4
3
,
6
0
5
2,
1
5
9
,
1
3
7
84
5
,
2
4
1
12,479,390
3,010,101
Op
e
r
a
t
i
n
g i
n
c
o
m
e
(lo
s
s
78
5
,
6
6
9
(59
1
,
4
5
8
)
45
4
,
2
3
8
(15
,
9
9
1
)
632,458
(144,800)
No
n
-
O
p
e
r
a
t
i
n
g
R
e
v
e
n
u
e
s
(
E
x
p
e
n
s
e
s
)
:
In
v
e
s
t
m
e
n
t
i
n
c
o
m
e
16
6
,
7
5
7
1
6
5
,
8
5
6
15
,
2
5
0
11
,
8
4
8
359,711
-
In
t
e
r
e
s
t
e
x
p
e
n
s
e
(26
7
,
9
7
2
)
(47
7
,
0
0
9
)
-
-
(744,981)
-
Ga
i
n
(
l
o
s
s
)
o
n
d
i
s
p
o
s
a
l
o
f
c
a
p
i
t
a
l
a
s
s
e
t
s
45
5
2
,
8
0
1
(
8
8
2
)
-
2,374
-
To
t
a
l
n
o
n
-
o
p
e
r
a
t
i
n
g r
e
v
e
n
u
e
(ex
p
e
n
s
e
s
(10
0
,
7
6
0
)
(30
8
,
3
5
2
)
14
,
3
6
8
1
1
,
8
4
8
(382,896)
-
In
c
o
m
e
(lo
s
s
) b
e
f
o
r
e
c
o
n
t
r
i
b
u
t
i
o
n
s
a
n
d
t
r
a
n
s
f
e
r
68
4
,
9
0
9
(89
9
,
8
1
0
)
46
8
,
6
0
6
(4,
1
4
3
)
249,562
(144,800)
Ca
p
i
t
a
l
c
o
n
t
r
i
b
u
t
i
o
n
s
53
1
,
8
4
8
1
,
0
1
1
,
7
9
0
-
-
1,543,638
-
Tr
a
n
s
f
e
r
s
i
n
-
28
2
-
-
282
-
Tr
a
n
s
f
e
r
s
o
u
t
(44
3
,
0
6
4
)
-
-
-
(443,064)
-
Ch
a
n
ge
i
n
n
e
t
a
s
s
e
t
s
77
3
,
6
9
3
1
1
2
,
2
6
2
46
8
,
6
0
6
(4,
1
4
3
)
1,350,418
(144,800)
To
t
a
l
N
e
t
A
s
s
e
t
s
-
B
e
g
i
n
n
i
n
g
27
,
7
5
9
,
8
8
1
4
7
,
2
3
0
,
4
8
9
3,
4
2
2
,
6
0
1
4,
7
4
2
,
9
6
4
(135,065)
Ad
j
u
s
t
m
e
n
t
-
c
h
a
n
g
e
i
n
a
c
c
o
u
n
t
i
n
g
p
r
i
n
c
i
p
l
e
(64
,
5
5
2
)
(36
,
3
6
8
)
(32
,
8
4
5
)
(10
,
1
9
0
)
-
To
t
a
l
N
e
t
A
s
s
e
t
s
-
E
n
d
i
n
g
28
,
4
6
9
,
0
2
2
$
4
7
,
3
0
6
,
3
8
3
$
3,
8
5
8
,
3
6
2
$
4,
7
2
8
,
6
3
1
$
(279,865)$ (38,459)
Ch
a
n
ge
i
n
B
u
s
i
n
e
s
s
-
T
ype
A
c
t
i
v
i
t
i
e
s
i
n
N
e
t
A
s
s
e
t
s
p
e
r
G
o
v
e
r
n
m
e
n
t
-
W
i
d
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
1,311,959
$
In
t
e
r
n
a
l
s
e
r
v
i
c
e
f
u
n
d
s
a
r
e
u
s
e
d
b
y
m
a
n
a
g
e
m
e
n
t
t
o
c
h
a
r
g
e
t
h
e
c
o
s
t
s
o
f
c
e
r
t
a
i
n
a
c
t
i
v
i
t
i
e
s
t
o
i
n
d
i
v
i
d
u
a
l
f
u
n
d
s
.
T
h
e
n
e
t
r
e
v
e
n
u
e
(e
x
p
e
n
s
e
)
o
f
c
e
r
t
a
i
n
i
n
t
e
r
n
a
l
s
e
r
v
i
c
e
f
u
n
d
s
i
s
r
e
p
o
r
t
e
d
w
i
t
h
B
u
s
i
n
e
s
s
A
c
t
i
v
i
t
i
e
s
.
Bu
s
i
n
e
s
s
-
t
y
p
e
A
c
t
i
v
i
t
i
e
s
-
E
n
t
e
r
p
r
i
s
e
F
u
n
d
s
Ye
a
r
E
n
d
e
d
S
e
p
t
e
m
b
e
r
3
0
,
2
0
1
0
Th
e
a
c
c
o
m
p
a
n
y
i
n
g
N
o
t
e
s
t
o
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
r
e
a
n
i
n
t
e
g
r
a
l
p
a
r
t
o
f
t
h
i
s
s
t
a
t
e
m
e
n
t
.
25
Governmental Activities-Internal Service
Wa
t
e
r
Se
w
e
r
Sa
n
i
t
a
t
i
o
n
S
t
o
r
m
w
a
t
e
r
T
o
t
a
l
Fund
Ca
s
h
F
l
o
w
s
f
r
o
m
O
p
e
r
a
t
i
n
g
A
c
t
i
v
i
t
i
e
s
:
R
e
c
e
i
p
t
s
f
r
o
m
c
u
s
t
o
m
e
r
s
4,
7
5
2
,
5
9
6
$
5,
2
1
8
,
6
9
0
$
2,
5
9
9
,
6
9
4
$
82
6
,
8
4
0
$
13
,
3
9
7
,
8
2
0
$
-$
R
e
c
e
i
p
t
s
f
r
o
m
i
n
t
e
r
n
a
l
s
e
r
v
i
c
e
s
p
r
o
v
i
d
e
d
-
-
-
-
-
2,865,273
P
a
y
m
e
n
t
s
t
o
s
u
p
p
l
i
e
r
s
(1
,
7
7
4
,
1
5
4
)
(2
,
4
5
1
,
1
2
9
)
(1
,
1
4
0
,
7
2
8
)
(2
2
8
,
3
3
5
)
(5
,
5
9
4
,
3
4
6
)
(3,067,879)
P
a
y
m
e
n
t
s
t
o
e
m
p
l
o
y
e
e
s
(1
,
5
9
0
,
3
9
6
)
(1
,
2
9
1
,
0
2
9
)
(7
3
8
,
2
3
6
)
(3
7
4
,
0
0
7
)
(3
,
9
9
3
,
6
6
8
)
-
N
e
t
c
a
s
h
p
r
o
v
i
d
e
d
(
u
s
e
d
)
b
y
o
p
e
r
a
t
i
n
g
a
c
t
i
v
i
t
i
e
s
1,
3
8
8
,
0
4
6
1,
4
7
6
,
5
3
2
72
0
,
7
3
0
22
4
,
4
9
8
3,
8
0
9
,
8
0
6
(202,606)
Ca
s
h
F
l
o
w
s
f
r
o
m
N
o
n
-
C
a
p
i
t
a
l
F
i
n
a
n
c
i
n
g
A
c
t
i
v
i
t
i
e
s
:
I
n
c
r
e
a
s
e
d
u
e
t
o
o
t
h
e
r
f
u
n
d
s
-
-
-
-
-
230,957
D
e
c
r
e
a
s
e
i
n
d
u
e
f
r
o
m
o
t
h
e
r
g
o
v
e
r
n
m
e
n
t
s
-
-
(1
,
0
5
1
)
-
(1,051)
-
T
r
a
n
s
f
e
r
s
o
u
t
(4
4
2
,
7
8
3
)
-
-
-
(
4
4
2
,
7
8
3
)
-
N
e
t
c
a
s
h
p
r
o
v
i
d
e
d
(
u
s
e
d
)
b
y
n
o
n
-
c
a
p
i
t
a
l
f
i
n
a
n
c
i
n
g
a
c
t
i
v
i
t
i
e
s
(4
4
2
,
7
8
3
)
-
(1
,
0
5
1
)
-
(4
4
3
,
8
3
4
)
230,957
Ca
s
h
F
l
o
w
s
f
r
o
m
C
a
p
i
t
a
l
a
n
d
R
e
l
a
t
e
d
F
i
n
a
n
c
i
n
g
A
c
t
i
v
i
t
i
e
s
:
A
c
q
u
i
s
i
t
i
o
n
o
f
c
a
p
i
t
a
l
a
s
s
e
t
s
(9
5
8
,
9
5
1
)
(2
,
2
3
4
,
8
5
0
)
(1
,
5
5
6
)
(2
3
9
,
9
0
7
)
(3
,
4
3
5
,
2
6
4
)
-
S
a
l
e
o
f
c
a
p
i
t
a
l
a
s
s
e
t
s
45
5
4,
2
7
7
4,732
-
I
n
t
e
r
e
s
t
p
a
i
d
o
n
l
o
n
g
-
t
e
r
m
d
e
b
t
(4
0
6
,
1
9
0
)
(7
2
2
,
1
1
3
)
-
-
(
1
,
1
2
8
,
3
0
3
)
-
P
r
i
n
c
i
p
a
l
p
a
i
d
o
n
d
e
b
t
(8
7
6
,
5
8
9
)
86
1
,
5
8
9
(15,000)
-
F
e
e
s
a
n
d
a
s
s
e
s
s
m
e
n
t
s
r
e
c
e
i
v
e
d
53
1
,
8
4
8
1,
0
1
1
,
7
9
0
-
-
1
,
5
4
3
,
6
3
8
-
N
e
t
c
a
s
h
p
r
o
v
i
d
e
d
(
u
s
e
d
)
b
y
c
a
p
i
t
a
l
a
n
d
r
e
l
a
t
e
d
f
i
n
a
n
c
i
n
g
a
c
t
i
v
i
t
i
e
s
(1
,
7
0
9
,
4
2
7
)
(1
,
0
7
9
,
3
0
7
)
(1
,
5
5
6
)
(2
3
9
,
9
0
7
)
(3
,
0
3
0
,
1
9
7
)
-
Bu
s
i
n
e
s
s
-
T
y
p
e
A
c
t
i
v
i
t
i
e
s
-
E
n
t
e
r
p
r
i
s
e
F
u
n
d
s
CI
T
Y
O
F
C
L
E
R
M
O
N
T
,
F
L
O
R
I
D
A
ST
A
T
E
M
E
N
T
O
F
C
A
S
H
F
L
O
W
S
PR
O
P
R
I
E
T
A
R
Y
F
U
N
D
S
Ye
a
r
E
n
d
e
d
S
e
p
t
e
m
b
e
r
3
0
,
2
0
1
0
Th
e
a
c
c
o
m
p
a
n
y
i
n
g
N
o
t
e
s
t
o
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
r
e
a
n
i
n
t
e
g
r
a
l
p
a
r
t
o
f
t
h
e
s
e
s
t
a
t
e
m
e
n
t
s
.
26
Ca
s
h
F
l
o
w
s
f
r
o
m
I
n
v
e
s
t
i
n
g
A
c
t
i
v
i
t
i
e
s
:
S
a
l
e
(
P
u
r
c
h
a
s
e
)
o
f
i
n
v
e
s
t
m
e
n
t
s
(2
,
5
1
4
,
8
1
0
)
2,
3
3
4
,
6
7
3
-
-
(
1
8
0
,
1
3
7
)
-
I
n
v
e
s
t
m
e
n
t
i
n
c
o
m
e
10
9
,
8
1
2
25
7
,
3
6
2
15
,
2
5
0
11
,
8
4
8
394,272
-
N
e
t
c
a
s
h
p
r
o
v
i
d
e
d
b
y
i
n
v
e
s
t
i
n
g
a
c
t
i
v
i
t
i
e
s
(2
,
4
0
4
,
9
9
8
)
2,
5
9
2
,
0
3
5
15
,
2
5
0
11
,
8
4
8
214,135
-
Ne
t
I
n
c
r
e
a
s
e
(
D
e
c
r
e
a
s
e
)
i
n
C
a
s
h
a
n
d
C
a
s
h
E
q
u
i
v
a
l
e
n
t
s
(3
,
1
6
9
,
1
6
2
)
2,
9
8
9
,
2
6
0
73
3
,
3
7
3
(3
,
5
6
1
)
549,910
28,351
Ca
s
h
a
n
d
C
a
s
h
E
q
u
i
v
a
l
e
n
t
s
-
B
e
g
i
n
n
i
n
g
5,
1
4
9
,
1
3
8
92
5
,
0
8
0
2,
0
6
1
,
8
9
1
1,
8
6
5
,
3
8
2
10
,
0
0
1
,
4
9
1
30,649
Ca
s
h
a
n
d
C
a
s
h
E
q
u
i
v
a
l
e
n
t
s
-
E
n
d
1,
9
7
9
,
9
7
6
$
3,
9
1
4
,
3
4
0
$
2,
7
9
5
,
2
6
4
$
1,
8
6
1
,
8
2
1
$
10
,
5
5
1
,
4
0
1
$
59,000$
Cl
a
s
s
i
f
i
e
d
A
s
:
C
a
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
1,
2
7
8
,
2
3
8
$
3,
2
3
8
,
3
8
5
$
2,
7
9
5
,
2
6
4
$
1,
8
6
1
,
8
2
1
$
9,
1
7
3
,
7
0
8
$
59,000$
R
e
s
t
r
i
c
t
e
d
c
a
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
70
1
,
7
3
8
67
5
,
9
5
5
-
-
1
,
3
7
7
,
6
9
3
-
T
o
t
a
l
1,
9
7
9
,
9
7
6
$
3,
9
1
4
,
3
4
0
$
2,
7
9
5
,
2
6
4
$
1,
8
6
1
,
8
2
1
$
10
,
5
5
1
,
4
0
1
$
59,000$
Re
c
o
n
c
i
l
i
a
t
i
o
n
o
f
O
p
e
r
a
t
i
n
g
I
n
c
o
m
e
(
L
o
s
s
)
t
o
N
e
t
C
a
s
h
P
r
o
v
i
d
e
d
B
y
O
p
e
r
a
t
i
n
g
A
c
t
i
v
i
t
i
e
s
O
p
e
r
a
t
i
n
g
i
n
c
o
m
e
(
l
o
s
s
)
78
5
,
6
6
9
$
(5
9
1
,
4
5
8
)
$
45
4
,
2
3
8
$
(1
5
,
9
9
1
)
$
632,458
$
(144,800)$
Ad
j
u
s
t
m
e
n
t
s
N
o
t
A
f
f
e
c
t
i
n
g
C
a
s
h
:
D
e
p
r
e
c
i
a
t
i
o
n
a
n
d
a
m
o
r
t
i
z
a
t
i
o
n
55
7
,
8
4
0
1
,
9
1
8
,
0
7
6
29
1
,
9
8
3
27
4
,
0
9
5
3
,
0
4
1
,
9
9
4
-
Ch
a
n
g
e
i
n
A
s
s
e
t
s
a
n
d
L
i
a
b
i
l
i
t
i
e
s
:
D
e
c
r
e
a
s
e
(
I
n
c
r
e
a
s
e
)
i
n
a
c
c
t
s
r
e
c
e
i
v
a
b
l
e
(7
9
,
7
9
1
)
36
6
,
5
4
3
(1
3
,
6
8
1
)
(2
,
4
1
0
)
270,661
(28)
D
e
c
r
e
a
s
e
(
I
n
c
r
e
a
s
e
)
i
n
c
u
s
t
o
m
e
r
d
e
p
o
s
i
t
s
15
,
3
1
1
-
-
-
15,311
-
D
e
c
r
e
a
s
e
(
I
n
c
r
e
a
s
e
)
i
n
p
r
e
p
a
i
d
c
o
s
t
s
(3
,
0
0
7
)
3,
2
4
5
3,
3
9
8
(3
7
8
)
3,258
-
D
e
c
r
e
a
s
e
(
I
n
c
r
e
a
s
e
)
i
n
i
n
v
e
n
t
o
r
y
(2
2
7
,
6
9
1
)
(2
8
,
5
3
6
)
-
-
(
2
5
6
,
2
2
7
)
-
I
n
c
r
e
a
s
e
(
d
e
c
r
e
a
s
e
)
i
n
a
c
c
o
u
n
t
s
p
a
y
a
b
l
e
25
5
,
1
4
0
(2
4
8
,
8
8
4
)
(6
1
,
7
1
2
)
(7
6
,
2
7
9
)
(1
3
1
,
7
3
5
)
(57,778)
I
n
c
r
e
a
s
e
(
d
e
c
r
e
a
s
e
)
i
n
a
c
c
r
u
e
d
l
i
a
b
i
l
i
t
i
e
s
84
,
5
7
5
57
,
5
4
6
46
,
5
0
4
45
,
4
6
1
234,086
-
T
o
t
a
l
a
d
j
u
s
t
m
e
n
t
s
60
2
,
3
7
7
2,
0
6
7
,
9
9
0
26
6
,
4
9
2
24
0
,
4
8
9
3,
1
7
7
,
3
4
8
(57,806)
Ne
t
C
a
s
h
P
r
o
v
i
d
e
d
(
U
s
e
d
)
b
y
O
p
e
r
a
t
i
n
g
A
c
t
i
v
i
t
i
e
s
1,
3
8
8
,
0
4
6
$
1,
4
7
6
,
5
3
2
$
72
0
,
7
3
0
$
22
4
,
4
9
8
$
3,
8
0
9
,
8
0
6
$
(202,606)$
No
n
c
a
s
h
i
n
v
e
s
t
i
n
g
,
c
a
p
i
t
a
l
,
a
n
d
f
i
n
a
n
c
i
n
g
a
c
t
i
v
i
t
i
e
s
:
De
c
r
e
a
s
e
i
n
f
a
i
r
v
a
l
u
e
o
f
i
n
v
e
s
t
m
e
n
t
s
19
,
9
4
9
$
(6
9
,
0
7
5
)
$
-
$
-
$
(
4
9
,
1
2
6
)
$
-$
Tr
a
n
s
f
e
r
o
f
c
a
p
i
t
a
l
a
s
s
e
t
s
(2
8
2
)
28
2
-
-
-
-
Th
e
a
c
c
o
m
p
a
n
y
i
n
g
N
o
t
e
s
t
o
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
a
r
e
a
n
i
n
t
e
g
r
a
l
p
a
r
t
o
f
t
h
e
s
e
s
t
a
t
e
m
e
n
t
s
.
27
CITY OF CLERMONT, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2010
Total Employee
Pension Funds
Assets:
Cash and cash equivalents $ 128,028
Receivables:
Employer contribution receivable 1,310,482
Total receivables 1,310,482
Investments:
U.S. Government & other debt securities 4,000,866
Equities 10,681,131
Total investments 14,681,997
Total assets 16,120,507
Liabilities:
Accounts payable -
Total liabilities -
Net Assets Held in Trust
for Pension Benefits 16,120,507$
The accompanying Notes to Financial Statements are an integral part of this statement.
28
CITY OF CLERMONT, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Year Ended September 30, 2010
Total Employee
Pension Funds
Additions:
Contributions:
Employer 1,767,102$
Plan members 112,727
State 397,494
Total contributions 2,277,323
Investment earnings:
Net increase in fair value of investments 1,171,151
Total net investment earnings 1,171,151
Total additions 3,448,474
Deductions:
Benefits/distributions 340,110
Administrative 67,977
Total deductions 408,087
Change in Net Assets 3,040,387
Net Assets - Beginning 13,080,120
Net Assets - End 16,120,507$
The accompanying Notes to Financial Statements are an integral part of this statement
29
30
NOTES TO FINANCIAL STATEMENTS
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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. The City of Clermont Community Redevelopment
Fund is presented as a blended component unit, since the City Council is the governing board.
31
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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.
32
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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 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.
33
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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.
34
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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.”
35
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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. These are recorded as expenditures when consumed rather than
when purchased.
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 accounts and their use is
limited by applicable bond covenants. Assets so designated are identified as
restricted assets on the balance sheet.
36
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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, intangible and
infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are
reported in the applicable governmental or business-type activities columns in
the government-wide financial statements. Capital assets are defined by the City
as assets with an initial, individual cost of $1,000 or more and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are
recorded at 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 & machiner y 3-15
Intangible assets3-15
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.
37
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
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.
Note 2 - Adjustment for Change in Accounting Principle:
Beginning net assets in the Water Fund, Sewer Fund, Sanitation Fund and Stormwater
Fund have been restated to record other post employment benefit (OPEB) obligation at
transition. The effect on beginning net assets of Water, Sewer, Sanitation and Stormwater
Funds was to reduce net assets by $64,552; $36,368; $32,845 and $10,190 respectively.
Beginning net assets for governmental activities has also been restated to record OPEB
obligation at transition in the amount of $398,045. See note 11 for further discussion.
38
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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 $543,581 difference are as follows:
Capital outlay 1,622,781$
Depreciation expense (2,166,362)
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities (543,581)$
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 $493,077 difference are as follows:
Debt issued or incurred
Principal repayment 493,077$
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities 493,077$
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 (15,040)$
Other post employment benefits (409,060)
Accrued interest payable 5,862
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities (418,238)$
39
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 4 - Stewardship, Compliance, and Accountability:
A. 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.
(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.
40
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 4 - Stewardship, Compliance, and Accountability (Continued):
B. Appropriations in Excess of Funds Available -
Appropriations for the Community Redevelopment Special Revenue Fund were in
excess of anticipated revenue and prior years’ fund balance.
C. Deficit Net Assets -
The Internal Service Fund has a deficit net asset balance of $279,865 at September 30,
2010.
D. Budgetary Basis of Accounting -
The city includes a portion of the prior year’s fund balances represented by unappropriated
liquid assets remaining in the fund as budgeted revenue in the succeeding year. The
results of operations on a GAAP basis do not recognize the fund balance allocation as
revenue as it represents prior periods’ excess of revenues over expenditures. The City
does not budget for capital outlay expenditures and other financing sources related to the
acquisition of assets through notes payable. Also, the City does not budget for the state
pension contributions that must be recorded as intergovernmental revenue and public
safety expenditures in the General Fund GAAP financial statements.
For the fiscal year ended September 30, 2010 the following adjustments are necessary to
convert General Fund revenues and expenditures on the GAAP basis to the budgetary
basis:
Revenues Expenditures
General Fund:
GAAP Basis17,579,820$ 17,407,658$
Nonbudgeted state pension amounts(397,494) (397,494)
Budgetary basis 17,182,326$ 17,010,164$
41
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 5 - Cash and Investments:
Deposits
At year-end, the carrying amount of the City's deposits was $22,940,113 and the bank
balance was $22,392,813. 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 as provided by the Florida Municipal Pension
Fund.
42
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 5 - Cash and Investments (Continued):
Investments - (Continued)
Investments made by the City of Clermont at September 30, 2010 are summarized below.
Defined benefit pension plan investments, other than $10,681,131 in mutual funds investing
in equity securities, are included below. In accordance with GASB 31, investments are
reported at fair value.
Investment Type Fair ValueCredit Rating
Weighted
Average
Maturity
Certificates of Deposit 12,000,000$ Unrated23 days
Federal Agency Bond 10,305,379 AAA 1.19 years
US Treasury Notes 5,340,988 TSY 1.32 years
Corporate Note 804,817 AA+2.15 years
Municipal Bond 504,425 AA+2.76 years
Government supported corporate debt 1,100,974 AAA 0.92 years
Pension fixed income securities 4,000,866 AA/V44.90 years
34,057,449$
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,
2010, all of the city’s bank deposits were in qualified public depositories.
For an investment, this is the risk that, in the event of the failure of the counterparty, the
government will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. At September 30, 2010, 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.
43
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 5 - Cash and Investments (Continued):
Investments - (Continued)
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 yearend for the City’s individual major funds and non-major funds, including
the applicable allowances for uncollectible accounts, are as follows:
Nonmajor InternalNonmajor
General Water Sewer Sanitation EnterpriseServiceGovernmental
Fund Fund Fund Fund Fund Fund Funds Total
Receivables:
Accounts909,130$ 424,063$ 479,079$ 262,512$ 84,737$ 28$ 6,855$ 2,166,404$
Taxes25,937 - - - - - - 25,937
Other 305,489 59,443 4,276 27 - - - 369,235
Less
allowance for
uncollectible
accounts (848,071) (17,902) (37,576) (21,394) (6,887) - - (931,830)
392,485$ 465,604$ 445,779$ 241,145$ 77,850$ 28$ 6,855$ 1,629,746$
44
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 7 - Capital Assets:
Capital asset activity for the year ended September 30, 2010 was as follows:
Beginning
BalanceIncreasesDecreases
Ending
Balance
Governmental Activities:
Capital assets, not being depreciated:
Land 21,776,552$ 351,480$ -$ 22,128,032$
Construction in progress 2,747,317 840,261 (2,106,590) 1,480,988
Total capital assets, not being
depreciated 24,523,869 1,191,741 (2,106,590) 23,609,020
Capital assets, being depreciated:
Buildings10,451,062 2,310,111 (162,453) 12,598,720
Improvements/infrastructure 11,631,044 73,139 - 11,704,183
Machinery and equipment 8,042,989 168,554 (276,560) 7,934,983
Intangibles 512,188 134,584 (14,291) 632,481
Total capital assets being
depreciated 30,637,283 2,686,388 (453,304) 32,870,367
Less accumulated depreciation for:
Buildings(4,425,240) (494,256) 44,692 (4,874,804)
Improvements/infrastructure (6,829,371) (678,344) 9,645 (7,498,070)
Machinery and equipment (5,334,456) (773,074) 165,477 (5,942,053)
Intangibles (101,263) (220,688) 14,291 (307,660)
Total accumulated depreicati on (16,690,330) (2,166,362) 234,105 (18,622,587)
Total capital assets being
depreciated, net 13,946,953 520,026 (219,199) 14,247,780
Governmental acti vities capital
assets, net 38,470,822$ 1,711,767$ (2,325,789)$ 37,856,800$
45
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 7 - Capital Assets (Continued):
Beginning
BalanceIncreasesDecreases
Ending
Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,457,973$ -$ -$ 1,457,973$
Construction in progress 13,620,309 2,570,511 (8,523,129) 7,667,691
Total capital assets, not being
depreciated 15,078,282 2,570,511 (8,523,129) 9,125,664
Capital assets, being depreciated:
Buildings 37,178 - - 37,178
Improvements/infrastructure 67,198,024 9,199,268 - 76,397,292
Machinery and equipment 3,833,116 228,104 (18,522) 4,042,698
Intangibles 136,777 - (30,845) 105,932
Total capital assets being
depreciated 71,205,095 9,427,372 (49,367) 80,583,100
Less accumulated depreciation for:
Buildings(36,950) (152) - (37,102)
Improvements/infrastructure (13,341,819) (2,586,739) - (15,928,558)
Machinery and equipment (2,013,811) (465,870) 16,164 (2,463,517)
Intangibles (108,055) (4,730) 6,853 (105,932)
Total accumulated depreicati on (15,500,635) (3,057,491) 23,017 (18,535,109)
Total capital assets being
depreciated, net 55,704,460 6,369,881 (26,350) 62,047,991
Business-type activities capital
assets, net 70,782,742$ 8,940,392$ (8,549,479)$ 71,173,655$
Increases in accumulated depreciation for business-type activities includes depreciation on
assets transferred from governmental, as well as reclassifications and adjustments. This
difference is $15,497.
Depreciation expense was charged to functions/programs as follows:
General government 406,771$
Public safety 1,093,739
Physical environment/transportation 376,326
Culture and recreation 289,526
Total depreciation expense - governmental activities 2,166,362$
Water 557,840$
Sewer 1,918,076
Sanitation 291,983
Stormwater274,095
Total depreciation expense - business-type activities 3,041,994$
Governmental activities:
Business-type activities
46
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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 2002 Public Improvement Revenue Bonds are secured by Public Service Tax,
Communication Service Tax and Half Cent Sales Tax revenue. The total principal and
interest remaining to be paid on this series is $4,822,623. For the fiscal year, principal and
interest paid on this series was $634,159 and total pledged revenue was $4,551,972.
The 2009 Water and Sewer Revenue and Refunding Bonds are secured by net revenue of
the water and sewer system. The total principal and interest remaining to be paid on this
series is $24,539,734. For the fiscal year, interest paid on this series was $528,208 and
total pledged revenue was $3,002,740.
The original amount of revenue bonds issued in prior years is described below. Revenue
bonds outstanding at year end are as follows:
Governmental Activities
Interest Rates
and Dates Maturity Original Amount
Balance
September 30,
2010
Public Improvement 1.75 - 4.6%12/1/2003
Revenue Bonds,to
Series 2002 (6/1 & 12/1)12/1/2017 6,965,000$ 4,040,000$
Business-Type Activities
Water and Sewer Revenue3.0 - 4.6%12/1/2010
Refunding Bonds,to
Series 2009 (6/1 & 12/1)12/1/2030 16,640,000$ 16,640,000$
47
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 8 - Long-Term Debt (Continued):
Bonds Payable - (Continued)
Annual debt service requirements to maturity for revenue bonds are as follows:
Year ending September 30,Principal Interest Principal Interest
2011 470,000$ 170,913$ 535,000$ 614,298$
2012 490,000 152,700 580,000 597,573
2013 510,000 133,100 595,000 579,948
2014 530,000 112,700 615,000 561,798
2015 550,000 90,440 630,000 543,123
2016-2020 1,490,000 122,770 3,455,000 2,408,375
2021-2025 - - 4,105,000 1,745,025
2026-2030 - - 4,995,000 823,606
2031 - - 1,130,000 25,990
Total4,040,000$ 782,623$ 16,640,000$ 7,899,736$
Governmental Activities Business - Type Activities
Current Refunding of Bonds Payable
The City issued Water and Sewer Revenue Refunding Bonds, Series 2009, to refund the
Water and Sewer Revenue and Refunding Bonds, Series 2000. The refunding was
undertaken to reduce total future debt service payments. The reacquisition price exceeded the
net carrying amount of the old debt by $545,101. This amount is being netted against the new
debt and amortized over the new debt’s life, which is the same as the refunded debt. This
transaction resulted in an economic gain of $1,716,044 and a reduction of $2,517,776 in future
debt service payments.
48
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 8 - Long-Term Debt (Continued):
Changes in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2010 was as follows:
Restated
Beginning
BalanceAdditionsDeductionsEnding Balance
Due Within
One Year
Governmental activities
Bonds payable-
Revenue Bonds 4,495,000$ -$ (455,000)$ 4,040,000$ 470,000$
Notes payable-
Revenue note, Series 1999 38,077 - (38,077) - -
Other post employment
benefits398,045 409,060 - 807,105 -
Compensated Absences 587,816 73,822 (58,782) 602,856 60,286
Governmental activity long-
term liabilities 5,518,938$ 482,882$ (551,859)$ 5,449,961$ 530,286$
Business-type activities
Bonds payable-
Revenue Bonds16,655,000$ 16,640,000$ (16,655,000)$ 16,640,000$ 535,000$
Less deferred amounts:
(discount)(261,879) 59,540 259,753 57,414 -
Loss on refunding (161,516) (706,619) 186,752 (681,383) -
Total bonds payable16,231,605 15,992,921 (16,208,495) 16,016,031 535,000
Other post employment
benefits143,955 147,940 - 291,895 -
Compensated Absences 233,504 52,016 (23,351) 262,169 26,218
Business-type activity long-
term liabilities 16,609,064$ 16,192,877$ (16,231,846)$ 16,570,095$ 561,218$
Note 9 - Interfund Receivables, Payables and Transfers:
The composition of interfund balances as of September 30, 2010 is as follows:
Receivable Fund Payable Fund Amount
General Fund Internal Service Fund 230,957$
230,957$
The amount payable to the general fund represents funding of required imprest balance of
internal service fund bank account and to cover funding shortfall to internal service fund.
49
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 9 - Interfund Receivables, Payables and Transfers (Continued):
Interfund transfers for the year ended September 30, 2010 consisted of the following:
GeneralSewerNonmajor
Transfers Out:FundFundGovernmentalTotal
General Fund -$ -$ 90,642$ $ 90,642
Nonmajor governmental4,866 1,549,320 1,554,186
Water fund 442,782 282 - 443,064
447,648$ 282$ 1,639,962$ 2,087,892$
Transfer In
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 their share of general fund expenses.
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 and benefits of the defined contribution plan are administered
by the Florida League of Cities.
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.
50
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 10 - Retirement Plans (Continued):
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.
Plan Descriptions and Contribution Information -
Membership of each of the defined benefit pension plans consisted of the following at
October 1, 2009, the date of the latest actuarial valuation:
General
EmployeesPolice OfficersFirefighters
Retirees and beneficiaries
currently receiving benefits 10 7 1
Terminated plan members entitled to,
but not yet receiving, benefits - 20 48
Active plan members - 50 58
Total10 77 107
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.
51
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 10 - Retirement Plans (Continued):
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, 2009
actuarial valuations is $3,051 for general employees, 28.7% for police officers and 24.16%
for firefighters. Police officers make a minimum mandatory contribution of 3% and
firefighters make a minimum mandatory contribution of 1%, in order to take advantage of the
insurance premium tax rebate provided for in the statutes. Administrative costs are
deducted from the net assets of the plan.
Annual Pension Cost and Net Pension Obligation - The City’s annual pension cost and net
pension obligation for the current year were as follows:
General
EmployeesPolice Officers Firefighters
Annual Required Contribution (ARC)3,051$ 713,188$ 616,742$
Interest on the Net Pension Obligation (Asset)- - 1,766
Adjustment to ARC - - (1,017)
Annual Pension Cost 3,051$ 713,188$ 617,491$
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
Fiscal
Year
Ending
Annual Pension
Cost (APC)
Percentage of APC
Contributed
9/30/2010 3,051$ 100%
9/30/2009 - 100%
9/30/2008 - 100%
9/30/2010 713,188$ 100%
9/30/2009 570,869 100%
9/30/2008 541,697 100%
9/30/2010 617,491$ 100%
9/30/2009 420,790 100%
9/30/2008 410,350 100%
General Employees
Police Officers
Firefighters
52
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 10 - Retirement Plans (Continued):
Funded Status and Funding Progress – Pension Plans
The funded status of each plan as of October 1, 2009, the most recent actuarial valuation
date, is as follows:
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
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 Employees573,379$ 566,885$ -$ 101.2%-$ N/A
Police Officers 5,288,822 6,163,934 875,112 85.8%2,485,033 35.2%
Fifefighters 2,609,047 2,596,659 - 100.5%2,552,427 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 10/1/2009 10/1/2009 10/1/2009
Actuarial Cost Method Aggregate Cost Aggregate Cost Aggregate Cost
Amortization Method N/A Level Percentage, openLevel Percentage, open
Remaining Amortization Period N/A 30 years 30 years
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%
Cost of living adjustment 0.0%0.0%0.0%
Mortality table RP-2000 Mortality TableRP-2000 Mortality TableRP-2000 Mortality Table
53
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 10 - Retirement Plans (Continued):
Plan changes in the October 1, 2009 actuarial valuations of all three plans included
changing from the 1983 Group Annuity Mortality Table to the one indicated above. The
minimum required contribution increased for Police Officers and Firefighters in the October
1, 2009 actuarial valuation by 5.71% and 4.5% respectively, of covered payroll. This
increase was due to investment losses, as well as the previously mentioned assumption
change in the mortality table.
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 2010 was $5,700,434; the City’s total payroll for
City employees was $11,439,557.
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 2010 was $464,790.
Note 11 - Other Post Employment Benefits:
In accordance with Florida Statutes Section 112.0801, the City makes continued group
health and dental insurance through the city’s current provider available to retirees and
eligible dependents provided certain service requirements and normal age retirement
requirements have been met. This plan is a single employer plan. The City is self insured
with respect to these benefits and provides an explicit subsidy for coverage to retirees and
their spouses based on the coverage selected. The City has eight retirees currently
receiving benefits. The City has chosen pay-as-you-go funding, but is recording the liability
in the government wide financial statements. This plan does not issue stand-alone financial
statements.
54
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 11 - Other Post Employment Benefits (Continued):
The first actuarial report for the City’s Retiree Continuation Insurance plan was prepared as
of May 1, 2009 for the year ended September 30, 2009. At that point in time, the unfunded
actuarial accrued liability (UAAL) for benefits was $2,413,000 and funded ratio was 0%. The
covered payroll was $10,764,000 and the ratio of the UAAL to covered payroll was 22.4
percent. However, the city was not required to implement GASB No. 45 for other post
employment benefits (OPEB) until the year ended September 30, 2010. The City elected to
record its Net OPEB obligation at transition retroactively, as allowed by GASB No. 45. The
OPEB obligation at transition was $542,000 and has been reflected in the accompanying
financial statements.
The annual required contribution and Net OPEB Obligation for the fiscal year ended
September 30, 2010 is as follows:
Annual required contribution 611,000$
Interest on net OPEB Obligation 22,000
Adjustment to annual required contribution(47,000)
Annual O PEB Cost 586,000
Employer Contributions (28,000)
Interest on Employer Contributions (1,000)
Increase in Net OPEB Obligation 557,000
Net OPEB Obligation (beginning of year)542,000
Net OPEB Obligation (end of year)1,099,000$
Three Year Trend Information-
Fiscal
Year
Ending
Annual
Required
Contribution
(ARC)
Percentage
of ARC
Contributed
Net OPEB
Obligation
9/30/2009571,000$ 5.0%542,000$
9/30/2010611,000 5.0%1,099,000
Summary of Actuarial Methods & Assumptions:
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, normally presents multi-year trend information about
whether the actuarial value of the plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits. The schedule of funding progress includes
only one year so multi-year comparison is not available for this period.
55
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 11 - Other Post Employment Benefits (Continued):
Summary of Actuarial Methods & Assumptions (Continued)
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
Actuarial Cost Method- The projected unit credit cost method was used to determine all
liabilities, with the liability for each active employee assumed to accrue over his working
lifetime based on elapsed time from his date of hire until retirement.
Amortization Method- The level-dollar payment with a 15 year open period amortization
method was used.
Decrements-
Mortality- Sex-distinct mortality rates set forth in the RP-2000 mortality table for annuitants
and non-annuitants; no deaths were assumed to be service-related.
Disability- Sex-distinct disability rates set forth in the Wyatt 1985 Disability Study; Class 4
rates were used for police officers and firefighters, Class 1 rates were used for all other
employees.
Permanent Withdrawal from Active Status- Sex-distinct withdrawal rates set forth in the
Scale 155 table.
Retirement- Retirement was assumed to occur as follows:
1.For police officers:Age 55 with at least 10 years of service, or
Age 52 with at least 20 years of service
2.For firefighters:Age 55 with at least 10 years of service, or
Age 52 with at least 25 years of service
3.For all others:Age 62 with at least 10 years of service
Investment Return (Discount Rate)- 4.0% per annum (includes inflation at 2.75% per
annum)
56
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 11- Other Post Employment Benefits (Continued):
Summary of Actuarial Methods & Assumptions (Continued)
Health Care Costs Trend Rates-The cost of covered medical services has been assumed
to increase in accordance with the following rates, compounded annually:
YearIncreaseYear IncreaseYear Increase
201010.00%20148.00%20186.00%
20119.50%20157.50%2019 5.00%
20129.00%20167.00%and later
20138.50%20176.50%
Per Capita Annual Claim Cost-The assumed per capita annual claim cost for a 62-year
old participant during the period May 1, 2009 through April 30, 2010 is $8,850. Medicare is
assumed to cover 80% of the healthcare claim cost after age 65.
Retiree Premiums-During the period May 1, 2009 through April 30, 2010, retirees under
age 65 have been assumed to make a contribution equal to $293.70 per month for
themselves plus $282.70 per month for their spouses. During the same period, retirees
over age 65 have been assumed to make a contribution equal to $176.22 per month for
themselves plus $169.62 per month for their spouses. All amounts are assumed to
increase thereafter in accordance with the healthcare cost trend rates.
Dental Subsidy-Dental costs are not assumed to increase with age. Therefore, this
valuation only reflects explicit dental subsidy that is provided by the City. For the period
May 1, 2009 through April 30, 2009, the dental subsidy is $15.95 per month for retired
employees and $49.82 per month for spouses of retirees, with both amounts assumed to
increase at the rate of 2.5% per annum thereafter.
Age-Related Morbidity-The cost of covered medical services has been assumed to
increase with age at the rate of 3.5% per annum.
Future Participation Rates-One third of eligible employees are assumed to elect coverage
upon retirement or disability and, of those electing coverage for themselves, one-third were
assumed to elect coverage for their spouses as well. Coverage for current retirees and
their spouses was assumed to continue for life.
Marriage & Dependent Assumption-Solely with respect to active employees, husbands
are assumed to be three years older than wives. Active employees were not assumed to
have any dependent children upon retirement or disability.
COBRA Assumption-Future healthcare coverage provided solely pursuant to COBRA was
not included in the OPEB valuation; because the COBRA premium is determined
periodically based on plan experience and is then loaded for administrative expenses, we
assumed that the COBRA premium to be paid by the participant fully covers the cost of
providing healthcare coverage during the relevant period.
57
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
Note 11 - Other Post Employment Benefits (Continued):
Summary of Benefits
Other Post-Employment Benefits (OPEBs)-The City of Clermont provides optional post-
employment healthcare and dental coverage to eligible individuals. The City is self-insured
with respect to both benefits and provides an explicit subsidy for such coverage to retirees
and their spouses.
Eligible Individuals-Eligible individuals include all regular employees of the City of
Clermont who retire from active service and are eligible for retirement or disability benefits
under the general employee, fire, and police pension plans. Under certain conditions,
eligible individuals for healthcare coverage also include spouses and dependent children.
Required Monthly Premium for Post-Employment Healthcare Coverage-Retirees must
pay a monthly premium as determined periodically by the City. The premium varies
depending on whether the retiree elects single, single plus spouse, or family coverage and
whether the retiree or his spouse is eligible for Medicare.
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.
Effective April 1, 2010, the re-insurance deductible was changed to $100,000.
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.
The general, water, sewer, sanitation and stormwater funds participate in the program and
make payments to the internal service fund based on the number of employees budgeted in
each fund.
The claims liability of $107,936 represents claims processed through November 2009 which
were applicable to the current fiscal year and any additional claims are deemed immaterial.
Changes to the current claims liability are as follows:
20102009
Claims liabilities, beginning of year165,714$ 414,506$
Incurred Claims 2,865,3012,838,872
Payments on Claims (2,923,079) (3,087,664)
Claims liabilities, end of year 107,936$ 165,714$
58
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
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, 2010. While the ultimate outcome of the
litigation cannot be determined at this time, management believes that any amounts not
covered by insurance, if any, resulting from these lawsuits would not materially affect the
financial position of the City.
Risk Management - The City is exposed to various risks of loss related to torts; theft of,
damage to and destruction of assets; errors and omissions; and natural disasters for which
the City carries commercial insurance. The City has obtained excess insurance coverage
with varying retentions and limits to further limit exposure to large losses. There have been
no significant reductions in insurance coverage from the prior year and settlements have not
exceeded insurance coverage during the past three years.
Note 14 - Evaluation of Events:
The City has evaluated subsequent events through March 23, 2011, the date the financial
statements were available to be issued.
59
60
REQUIRED SUPPLEMENTAL INFORMATION
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2010
Schedules of Funding Progress - Pension Plans
Actuarial Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability
(AAL) -
Entry Age
(b)
Unfunded
AAL
(UAAL)
(b - a)
Funded
Ratio
(a / b)
Covered
Payroll
(c)
General Employees
10/1/2003863,029 863,029 - 100.0%-
10/1/2004863,278 863,278 - 100.0%-
10/1/2005816,972 816,972 - 100.0%-
10/1/2006794,277 794,277 - 100.0%-
10/1/2007822,401 822,401 - 100.0%-
10/1/2009573,379 566,885 - 101.2%-
Police Officers
10/1/20023,268,335 2,368,335 - 100.0%1,042,972
10/1/20032,762,688 2,762,688 - 100.0%1,279,696
10/1/20043,032,203 3,032,203 - 100.0%1,424,568
10/1/20053,571,295 3,571,295 - 100.0%1,534,254
10/1/20074,905,071 4,905,071 - 100.0%2,356,375
10/1/20095,288,822 6,163,934 875,112 85.8%2,485,033
Fire Fighters
10/1/2003814,097 814,097 - 100.0%597,364
10/1/2004974,966 974,966 - 100.0%901,980
10/1/20051,256,347 1,256,347 - 100.0%1,047,097
10/1/20061,345,093 1,345,093 - 100.0%1,257,860
10/1/20071,972,299 1,972,299 - 100.0%2,031,230
10/1/20092,609,047 2,596,659 - 100.5%2,552,427
61
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2010
Schedules of Employer Contributions - Pension Plans
Year Ended
9/30
Annual
Required
Contribution
Percentage
Contributed
Annual Required
Contribution
Percentage
Contributed
Annual
Required
Contribution
Percentage
Contributed
20057,897$ 100%277,060$ 100%160,454$ 100%
200619,697 100%291,677 100%189,164 100%
200719,697 100%376,518 100%199,989 100%
2008 - 100%541,697 100%410,350 100%
2009 - 100%570,869 100%420,790 100%
20103,051 100%713,188 100%616,742 100%
General Employees Police Officers Firefighters
Employer Contributions
62
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2010
Schedule of Funding Progress – Retiree Continuation Insurance Plan
Actuarial
Valuation
Actuarial Value
of Assets
Actuarial
Accrued Liability
(AAL) Entry Age
Unfunded AAL
(UAAL)
Funded
RatioCovered Payroll
UAAL as a
% of
Covered
Payroll
Date (a)(b)(b-a)(a/b)( c)(b-a) / c
5/1/2009 -$ 2,413,000$ 2,413,000$ 0.0%10,764,000$ 22.4%
** initial valuation date
Schedule of Employer Contributions - Retiree Continuation Insurance Plan
Annual Required
Percenta ge
of ARC
Fiscal Year EndingContribution (ARC)Contributed
9/30/2009 571,000$ 5.0%542,000$
9/30/2010 611,000 5.0%1,099,000
Net OPEB
Obligation
63
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information
September 30, 2010
Note 1
The following plan changes have been implemented in conjunction with the October 1, 2009
actuarial valuation for the General Employees Pension Plan.
1. The mortality basis was changed from the 1983 Group Annuity Mortality Table to the
RP-2000 Mortality Table to reflect updated life expectancy. The net effect of the change
in mortality rates was to decrease the total projected liability by $70,040 and to decrease
the normal cost rate by $855.
2. An administrative expense assumption has been added equal to a 5% loading of plan
liabilities. The new expense assumption results in $3,749 of assumed administrative
expenses for the 2009-10 plan year. In addition, expenses are assumed to increase in
proportion to plan liabilities during later years.
Note 2
The following plan changes have been implemented in conjunction with the October 1, 2009
actuarial valuation for the Police Officers Pension Plan.
1. The mortality basis was changed from the 1983 Group Annuity Mortality Table to the
RP-2000 Mortality Table to reflect updated life expectancy. The net effect of the change
in mortality rates was to increase the total projected liability by $178,387 and to increase
the normal cost rate by 0.71% of payroll.
2. The administrative expense assumption has been changed from a flat $10,500 per year
to a 1.5% loading of plan liabilities. The new expense assumption results in $20,013 of
assumed administrative expenses for the 2009-10 plan year. In addition, expenses are
assumed to increase in proportion to plan liabilities during later years.
Note 3
The following plan changes have been implemented in conjunction with the October 1, 2009
actuarial valuation for the Firefighters Pension Plan.
1. The mortality basis was changed from the 1983 Group Annuity Mortality Table to the
RP-2000 Mortality Table to reflect updated life expectancy. The net effect of the change
in mortality rates was to increase the total projected liability by $374,084 and to increase
the normal cost rate by 1.17% of payroll.
2. The administrative expense assumption has been changed from a flat $8,000 per year to
a 1.75% loading of plan liabilities. The new expense assumption results in $14,437 of
assumed administrative expenses for the 2009-10 plan year. In addition, expenses are
assumed to increase in proportion to plan liabilities during later years.
64
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
OTHER GOVERNMENTAL FUNDS
Special Revenue Funds
Recreation Impact Fees Fund This fund was established to account for recreation
impact fees collected from new developments
constructed in the City.
Police Impact Fees Fund This fund was established to account for police
impact fees collected from new developments
constructed in the City.
Fire Impact Fee Fund This fund was established to account for fire impact
fees collected from new developments constructed
in the City.
Building Services Fund This fund was established to account for the
operations of the City’s building and other permits
department.
Infrastructure Fund This fund was established to account for the
proceeds of the Local Government Infrastructure
Surtax. The proceeds and interest accrued thereto,
by law are only to be used to finance, plan and
construct infrastructure.
Debt Service Fund
Debt Service Fund This fund was established to account for the
accumulation of resources and payment of bond
principal and interest from governmental resources.
Capital Projects Fund
Capital Projects Fund This fund was established to account for the
acquisition of capital assets or construction of major
capital projects not being financed by proprietary
funds.
Permanent Fund
Cemetery Perpetual Care Fund This fund is used to account for monies provided by
people buying lots in the City cemetery. The
principal must be kept separate and apart from all
other funds, but the interest may be transferred to
the General Fund to defray the cost of cemetery
operation and maintenance.
65
Special Revenue
Recreation
Impact Fees
Police Impact
Fees
Fire Impact
Fees
Building
Services
Infrastructure
Special
Revenue
Assets:
Cash and cash equivalents 1,343,061$ 2,359,705$ 119,059$ 102,407$ 1,003,997$
Other receivables - - - - -
Due from other governments - - - - 122,298
Prepaid expenses - - - 353 -
Total assets 1,343,061$ 2,359,705$ 119,059$ 102,760$ 1,126,295$
Liabilities and Fund Balances:
Liabilities:
Accounts payable -$ -$ -$ 39,139$ 168,105$
Accrued liabilities - - - 4,992 -
Total liabilities - - - 44,131 168,105
Fund balances:
Reserved for:
Debt service - - - - -
Ptl
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
September 30, 2010
Perpetual care - - - - -
Unreserved 1,343,061 2,359,705 119,059 58,629 958,190
Total fund balances 1,343,061 2,359,705 119,059 58,629 958,190
Total liabilities and
fund balances 1,343,061$ 2,359,705$ 119,059$ 102,760$ 1,126,295$
66
Special
Revenue
TotalDebt ServiceCapital Projects
Permanent Fund -
Cemetery
Perpetual Care
Total Nonmajor
Governmental
Funds
4,928,229$ 488,330$ 3,269,292$ 796,885$ 9,482,736$
- - 6,855 - 6,855
122,298 - - - 122,298
353 - - - 353
5,050,880$ 488,330$ 3,276,147$ 796,885$ 9,612,242$
207,244$ -$ 298,525$ 25$ 505,794$
4,992 - - - 4,992
212,236 - 298,525 25 510,786
- 488,330 - - 488,330
796860 796860- - - 796,860 796,860
4,838,644 - 2,977,622 - 7,816,266
4,838,644 488,330 2,977,622 796,860 9,101,456
5,050,880$ 488,330$ 3,276,147$ 796,885$ 9,612,242$
67
Special Revenue
Recreation
Impact Fees
Police Impact
Fees
Fire Impact
Fees
Building
Services
Revenues:
Licenses and permits -$ -$ -$ 465,537$
Intergovernmental - - - -
Charges for services - - - 58,853
Impact fees/special assessments 779,827 207,402 143,742 -
Investment earnings 7,146 14,220 706 638
Miscellaneous - - - -
Total revenues 786,973 221,622 144,448 525,028
Expenditures:
Current:
General government - - - 550,809
Public safety - - 5,779 -
Transportation - - - -
Culture and recreation 19,032 - - -
Debt Service:
Principal - - 38,077 -
Interest and fiscal charges - - 1,111 -
Capital Outlay:
Public safety - - - -
Culture and recreation - - - -
Total expenditures 19,032 - 44,967 550,809
Excess (Deficiency) of Revenues
Over Expenditures 767,941 221,622 99,481 (25,781)
Other Financing Sources (Uses):
Transfers in - - - -
Transfers out (196,026) (24,909) (120,856) -
Total other financing sources (uses)(196,026) (24,909) (120,856) -
Net Change in Fund Balances 571,915 196,713 (21,375) (25,781)
Fund Balances - Beginning 771,146 2,162,992 140,434 84,410
Fund Balances - Ending 1,343,061$ 2,359,705$ 119,059$ 58,629$
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
Year Ended September 30, 2010
68
Infrastructure
Special
Revenue TotalDebt ServiceCapital Projects
Permanent Fund -
Cemetery
Perpetual Care
Total Nonmajor
Governmental
Funds
-$ 465,537$ -$ -$ -$ 465,537$
1,780,177 1,780,177 - - - 1,780,177
- 58,853 - - - 58,853
- 1,130,971 - - - 1,130,971
8,810 31,520 1,997 19,655 4,866 58,038
- - - - 76,250 76,250
1,788,987 3,467,058 1,997 19,655 81,116 3,569,826
- 550,809 - 378,075 - 928,884
74,241 80,020 - 24,909 - 104,929
536,949 536,949 - - - 536,949
- 19,032 - 151,617 - 170,649
- 38,077 455,000 - - 493,077
- 1,111 179,609 - - 180,720
- - - 30,427 - 30,427
- - - 612,645 - 612,645
611,190 1,225,998 634,609 1,197,673 - 3,058,280
1,177,797 2,241,060 (632,612) (1,178,018) 81,116 511,546
- - 755,352 884,610 - 1,639,962
(1,207,529) (1,549,320) - - (4,866) (1,554,186)
(1,207,529) (1,549,320) 755,352 884,610 (4,866) 85,776
(29,732) 691,740 122,740 (293,408) 76,250 597,322
987,922 4,146,904 365,590 3,271,030 720,610 8,504,134
958,190$ 4,838,644$ 488,330$ 2,977,622$ 796,860$ 9,101,456$
Special Revenue
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:
Impact fees/special assessments 205,200$ 205,200$ 779,827$ 574,627$
Investment earnings 6,000 6,000 7,146 1,146
Total revenues 211,200 211,200 786,973 575,773
Expenditures:
Current:
Culture and recreation 35,000 35,000 19,032 15,968
Total expenditures 35,000 35,000 19,032 15,968
Excess (Deficiency) of Revenues
Over Expenditures 176,200 176,200 767,941 591,741
Other Financing Sources (Uses)
Transfers out (700,000) (700,000) (196,026) 503,974
Total other financing sources (uses)(700,000) (700,000) (196,026) 503,974
Net Change in Fund Balances (523,800) (523,800) 571,915 1,095,715
Fund Balances - Beginning 771,146 771,146 771,146 -
Fund Balances - Ending 247,346$ 247,346$ 1,343,061$ 1,095,715$
RECREATION IMPACT FEE SPECIAL REVENUE FUND
Year Ended September 30, 2010
70
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 43,200$ 43,200$ 207,402$ 164,202$
Investment earnings 14,000 14,000 14,220 220
Total revenues 57,200 57,200 221,622 164,422
Expenditures:
Current:
Public Safety:
Law enforcement 696,435 696,435 - 696,435
Total expenditures 696,435 696,435 - 696,435
Excess (Deficiency) of Revenues
Over Expenditures (639,235) (639,235) 221,622 860,857
Other Financing Sources (Uses)
Transfers out - (24,909) (24,909) -
Total other financing sources (uses)- (24,909) (24,909) -
Net Change in Fund Balances (639,235) (664,144) 196,713 860,857
Fund Balances - Beginning 2,162,992 2,162,992 2,162,992 -
Fund Balances - Ending 1,523,757$ 1,498,848$ 2,359,705$ 860,857$
POLICE IMPACT FEE SPECIAL REVENUE FUND
CITY OF CLERMONT, FLORIDA
Year Ended September 30, 2010
71
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 30,000$ 143,741$ 143,742$ 1$
Investment earnings 1,800 1,800 706 (1,094)
Total revenues 31,800 145,541 144,448 (1,093)
Expenditures:
Current:
Public safety:
Fire control 4,200 4,200 5,779 (1,579)
Debt Service:
Principal retirement 38,077 38,077 38,077 -
Interest and fiscal charges 3,220 3,220 1,111 2,109
Total expenditures 45,497 45,497 44,967 530
Excess (Deficiency) of Revenues
Over Expenditures (13,697) 100,044 99,481 (563)
Other Financing Sources (Uses):
Transfers out (100,945) (120,857) (120,856) 1
Total other financing sources (uses)(100,945) (120,857) (120,856) 1
Net Change in Fund Balances (114,642) (20,813) (21,375) (562)
Fund Balances - Beginning 140,434 140,434 140,434 -
Fund Balances - Ending 25,792$ 119,621$ 119,059$ (562)$
CITY OF CLERMONT, FLORIDA
FIRE IMPACT FEE SPECIAL REVENUE FUND
Year Ended September 30, 2010
72
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 304,650$ 450,668$ 465,537$ 14,869$
Charges for services 92,175 92,175 58,853 (33,322)
Investment earnings 100 100 638 538
Total revenues 396,925 542,943 525,028 (17,915)
Expenditures:
Current:
General government 431,282 555,397 550,809 4,588
Total expenditures 431,282 555,397 550,809 4,588
Excess (Deficiency) of Revenues
Over Expenditures (34,357) (12,454) (25,781) (13,327)
Net Change in Fund Balances (34,357) (12,454) (25,781) (13,327)
Fund Balances - Beginning 84,410 84,410 84,410 -
Fund Balances - Ending 50,053$ 71,956$ 58,629$ (13,327)$
CITY OF CLERMONT, FLORIDA
BUILDING SERVICES SPECIAL REVENUE FUND
Year Ended September 30, 2010
73
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:
Intergovernmental revenues 1,700,000$ 1,700,000$ 1,780,177$ 80,177$
Investment earnings 29,000 29,000 8,810 (20,190)
Total revenues 1,729,000 1,729,000 1,788,987 59,987
Expenditures:
Current:
Public safety:
Fire control 103,000 103,465 74,241 29,224
Transportation:
Roads & streets 355,000 601,609 536,949 64,660
Total expenditures 458,000 705,074 611,190 93,884
Excess (Deficiency) of Revenues
Over Expenditures 1,271,000 1,023,926 1,177,797 153,871
Other Financing Sources (Uses):
Transfers out (1,706,254) (1,207,529) (1,207,529) -
Total other financing sources (uses)(1,706,254) (1,207,529) (1,207,529) -
Net Change in Fund Balances (435,254) (183,603) (29,732) 153,871
Fund Balances - Beginning 987,922 987,922 987,922 -
Fund Balances - Ending 552,668$ 804,319$ 958,190$ 153,871$
CITY OF CLERMONT, FLORIDA
INFRASTRUCTURE SPECIAL REVENUE FUND
Year Ended September 30, 2010
74
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)
OriginalFinal
Revenues:
Investment earnings3,700$ 3,700$ 1,997$ (1,703)$
Total revenues3,700 3,700 1,997 (1,703)
Expenditures:
Debt Service:
Principal 455,000 455,000 455,000 -
Interest and fiscal charges 179,609 179,609 179,609 -
Total expenditures 634,609 634,609 634,609 -
Excess (Deficiency) of Revenues
Over Expenditures (630,909) (630,909) (632,612) (1,703)
Other Financing Sources (Uses):
Transfers in 630,909 630,909 755,352 124,443
Total other financing sources (uses)630,909 630,909 755,352 124,443
Net Change in Fund Balances - - 122,740 122,740
Fund Balances - Beginning 365,590 365,590 365,590 -
Fund Balances - Ending 365,590$ 365,590$ 488,330$ 122,740$
DEBT SERVICE FUND
Year Ended September 30, 2010
75
CITY OF CLERMONT, FLORIDA
SCHEDULE OF REVENUES, EXPENDTURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with
Final Budget -
Positive
(Negative)
OriginalFinal
Revenues:
Investment earnings 6,000$ 6,000$ 19,655$ 13,655$
Miscellaneous 96,830 96,830 - (96,830)
Total revenues 102,830 102,830 19,655 (83,175)
Expenditures:
Current:
General government - 383,451 378,075 5,376
Culture and recreation - - 151,617 (151,617)
Public safety:
Fire control - 24,909 24,909 -
Capital outlay:
Public safety - 30,429 30,427 2
Culture and recreation 1,886,630 1,387,905 612,645 775,260
Total expenditures 1,886,630 1,826,694 1,197,673 629,021
Excess (Deficiency) of Revenues
Over Expenditures (1,783,800) (1,723,864) (1,178,018) 545,846
Other Financing Sources (Uses):
Transfers in 1,952,000 1,478,184 884,610 (593,574)
Total other financing sources (uses)1,952,000 1,478,184 884,610 (593,574)
Net Change in Fund Balances 168,200 (245,680) (293,408) (47,728)
Fund Balances - Beginning 3,271,030 3,271,030 3,271,030 -
Fund Balances - Ending 3,439,230$ 3,025,350$ 2,977,622$ (47,728)$
CAPITAL PROJECTS FUND
Year Ended September 30, 2010
76
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.
77
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2010
Police
OfficersFirefightersTotal
Defined Defined PensionPensionEmployee
BenefitContributionTrustTrustPension Funds
Assets:
Cash and cash equivalents6,527$ $ - 77,981$ 43,520$ $ 128,028
Receivables:
Employer contribution receivable 3,051 - 689,472 617,959 1,310,482
Total receivables 3,051 - 689,472 617,959 1,310,482
Investments:
U.S. Government & other debt securities203,958 - 2,436,9161,359,992 4,000,866
Equities 333,404 4,141,048 3,983,5452,223,134 10,681,131
Total Investments 537,362 4,141,048 6,420,461 3,583,126 14,681,997
Total assets 546,940 4,141,048 7,187,914 4,244,605 16,120,507
Liabilities:
Accounts payable - - - - -
Total liabilities - - - - -
Net Assets Held in Trust
for Pension Benefits 546,940$ 4,141,048$ 7,187,914$ 4,244,605$ 16,120,507$
General Employees
78
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Year Ended September 30, 2010
Police
OfficersFirefightersTotal
DefinedDefinedPensionPensionEmployee
BenefitContributionTrustTrustPension Funds
Additions:
Contributions:
Employer 3,051$ 464,790$ 689,473$ 609,788$ 1,767,102$
Plan members - - 84,889 27,838 112,727
State - - 214,298 183,196 397,494
Total contributions 3,051 464,790 988,660 820,822 2,277,323
Investment earnings:
Net increase in fair value of investments48,093 284,666 539,568 298,824 1,171,151
Total net investment earnings 48,093 284,666 539,568 298,824 1,171,151
Total additions 51,144 749,456 1,528,228 1,119,646 3,448,474
Deductions:
Benefits/distributions 73,214 98,389 150,757 17,750 340,110
Administrative expenses 4,369 18,535 25,909 19,164 67,977
Total deductions 77,583 116,924 176,666 36,914 408,087
Change in Net Assets (26,439) 632,532 1,351,562 1,082,732 3,040,387
Net Assets Held in Trust for Pension Benefits
Beginning of Year 573,379 3,508,516 5,836,352 3,161,873 13,080,120
End of Year 546,940$ 4,141,048$ 7,187,914$ 4,244,605$ 16,120,507$
General Employees
79
80
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 82
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 92
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property tax.
Debt Capacity 97
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 102
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 106
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.
81
200120022003 2004
Governmental activities
Invested in capital assets, net of related debt***10,959$
Restricted ***3,121
Unrestricted ***5,619
Total governmental activities net assets ***19,699$
Business-type activities
Invested in capital assets, net of related debt***12,054$
Restricted ***22,601
Unrestricted ***9,903
Total business-type activities net assets ***44,558$
Primary government
Invested in capital assets, net of related debt***23,013$
Restricted ***25,722
Unrestricted ***15,522
Total primary government net assets ***64,257$
* Data not available prior to the implementation of GASB Statement 34.
Net Assets by Component
City of Clermont, Florida
Fiscal Year
(amounts expressed in thousands)
(accrual basis of accounting)
Last Ten Fiscal Years
82
2005 2006 2007 2008 2009 2010
12,118$ 15,777$ 15,825$ 27,462$ 33,938$ 33,817$
4,800 5,935 7,830 8,959 6,526 6,693
8,125 8,693 14,459 11,946 13,608 13,988
25,043$ 30,405$ 38,114$ 48,367$ 54,072$ 54,498$
12,082$ 15,864$ 24,837$ 46,569$ 54,834$ 55,540$
27,573 33,732 36,931 13,899 10,437 17,293
13,414 13,447 10,841 18,103 17,801 11,407
53,069$ 63,043$ 72,609$ 78,571$ 83,072$ 84,240$
24,200$ 31,641$ 40,662$ 74,031$ 88,772$ 89,357$
32,373 39,667 44,761 22,858 16,963 23,986
21,539 22,140 25,300 30,049 31,409 25,395
78,112$ 93,448$ 110,723$ 126,938$ 137,144$ 138,738$
Fiscal Year
83
Expenses 2001200220032004
Governmental activities:
General government ***2,337$
Public safety ***4,688
Physical environment ***421
Transportation/public works ***1,056
Economic environment ***32
Human services ***132
Culture and recreation ***1,742
Interest on long-term debt ***350
Total governmental activities expenses***10,758
Business-type activities:
Water ***2,707
Sewer ***3,423
Sanitation ***1,617
Stormwater ***266
Total business-type activities expenses ***8,013
Total primary government expenses ***18,771$
Program Revenues
Governmental activities:
Charges for services:
General government ***963$
Public safety ***807
Transportation/public works ***250
Culture and recreation ***1,009
Operating grants and contributions ***591
Capital grants and contributions ***-
Total governmental activities
program revenues ***3,620
Business-type activities:
Charges for services:
Water ***4,342$
Sewer ***2,832
Sanitation ***1,811
Stormwater ***571
Operating grants and contributions ***105
Capital grants and contributions ***7,095
Total business-type activities
program revenues ***16,756
Total primary government program revenues***20,376$
* Data not available prior to the implementation of GASB Statement 34 in 2004.
City of Clermont, Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
84
200520062007200820092010
2,617$ 3,232$ 3,297$ 4,204$ 4,747$ 4,287$
5,7737,1098,78310,33010,77512,459
278 382 470 514 364 319
1,1721,3221,2551,5441,1641,768
13 181 52 48 101 50
149 77 130 107 0 0
1,8161,8512,4412,0612,0822,055
255 285 226 459 326 175
12,07314,43916,65419,26719,55921,113
3,0153,4272,9873,7373,9904,316
3,5724,0243,8964,5214,4895,927
1,8171,7311,8162,1232,0862,169
287 316 427 549 534 848
8,6919,4989,12610,93011,09913,260
20,764$ 23,937$ 25,780$ 30,197$ 30,658$ 34,373$
1,042$ 1,037$ 1,116$ 1,582$ 1,854$ 1,857$
9121,1581,105 975 1,203 665
36 - - - - -
4631,566 882 761 99 872
512 523 9231,047 921 1,162
1,644 1052,5187,330 3,307 134
4,6094,3896,54411,6957,3844,690
4,320$ 4,839$ 5,502$ 5,654$ 4,909$ 4,817$
3,2953,7844,2424,422 4,655 4,852
2,0882,2362,4022,515 2,560 2,613
627 689 729 766 801 829
138 11 38 700 - -
6,2876,4083,6761,480 2,137 1,544
16,75517,96716,58915,53715,06214,655
21,364$ 22,356$ 23,133$ 27,232$ 22,446$ 19,345$
Fiscal Year
85
City of Clermont, Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
200120022003 2004
Net (expense)/revenue
Governmental activities ***(7,138)$
Business-type activities ***8,743
Total primary government net expense ***1,605$
General Revenues and Other Changes
in Net Assets
Governmental activities:
Taxes
Property taxes ***3,371$
Franchise fees ***1,128
Utility taxes 1,382
Unrestricted intergovernmental revenues***3,279
Unrestricted investment earnings
and miscellaneous revenues ***186
Transfers ***385
Total governmental activities ***9,731
Business-type activities:
Investment earnings ***390$
Transfers ***(385)
Total business-type activities ***5
Total primary government ***9,736$
Change in Net Assets
Governmental activities ***2,593$
Business-type activities ***8,748
Total primary government ***11,341$
* Data not available prior to the implementation of GASB Statement 34 in 2004.
Fiscal Year
86
200520062007200820092010
(7,464)$ (10,050)$ (10,110)$ (7,572)$ (12,175)$ (16,422)$
8,0648,4697,4634,6053,9641,395
600$ (1,581)$ (2,647)$ (2,967)$ (8,211)$ (15,027)$
4,417$ 5,665$ 7,452$ 7,749$ 7,601$ 6,844$
1,3571,7141,8081,9112,1512,373
1,5521,7821,8811,9922,1522,558
3,9234,9534,9524,7764,4584,503
1,181 8351,216 9011,050 525
377 464 509 496 469 443
12,80715,41317,81817,82517,88117,246
825$ 1,968$ 2,612$ 1,853$ 1,005$ 360$
(377)(464)(509)(496) (469) (443)
4481,5042,1031,357 536 (83)
13,255$ 16,917$ 19,921$ 19,182$ 18,417$ 17,163$
5,343$ 5,363$ 7,708$ 10,253$ 5,705$ 824$
8,5129,9739,5665,9614,5011,312
13,855$ 15,336$ 17,274$ 16,214$ 10,206$ 2,136$
Fiscal Year
87
2001 2002 2003 2004
General fund
Reserved 97$ 162$ 167$ 168$
Unreserved 2,120 2,559 3,110 4,207
Total general fund 2,217$ 2,721$ 3,277$ 4,375$
All other governmental funds
Reserved 430$ 512$ 760$ 894$
Unreserved, reported in:
Special revenue funds 793 1,003 2,318 3,410
Capital projects fund 669 4,423 106 -
Total all other governmental funds 1,892$ 5,938$ 3,184$ 4,304$
Fiscal Year
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
88
2005 2006 2007 2008 2009 2010
198$ 233$ 307$ 209$ 214$ 246$
5,758 4,857 9,128 9,57210,86011,358
5,956$ 5,090$ 9,435$ 9,781$ 11,074$ 11,604$
1,083$ 1,189$ 1,539$ 1,912$ 2,267$ 2,758$
5,028 7,76710,771 5,314 4,147 4,839
926 780 843 4,496 3,271 2,978
7,037$ 9,736$ 13,153$ 11,722$ 9,685$ 10,575$
Fiscal Year
89
2001 2002 2003 2004
Revenues
Taxes 4,931$ 5,752$ 6,794$ 6,791$
Licenses and permits 211 253 277 467
Intergovernmental revenue 9301,4081,1522,758
Charges for services 37 367 378 381
Fines and forfeitures 146 112 114 125
Impact fees/special assessments 9451,3141,4241,592
Investment income 243 141 145 107
Miscellaneous 212 177 219 541
Total revenues 7,6559,52410,50312,762
Expenditures
General government 874$ 1,117$ 1,338$ 1,432$
Public Safety 2,2473,1183,6064,274
Physical environment 197 42 35 278
Transportation 454 622 8061,055
Economic environment 27 44 39 32
Human services 20 58 89 122
Culture and recreation 1,0111,1621,3161,009
Capital outlay 2,8823,2055,3512,752
Debt service
Principal 257 396 236 507
Interest 99 92 257 268
Other charges 1 211 - -
Total expenditures 8,06910,06713,07311,729
Excess of revenues
over (under) expenditures (414)$ (543)$ (2,570)$ 1,033$
Other financing sources (uses)
Transfers in 551$ 1,468$ 1,182$ 1,217$
Transfers out (302)(1,378)(863)(832)
Debt issuance - 6,965 27 800
Sale of capital assets - - - -
Payments to refunded bond escrow agent - (2,000)- -
Total other financing sources (uses)2495,055 3461,185
Net change in fund balances (165)$ 4,512$ (2,224)$ 2,218$
Debt service as a percentage of noncapital
expenditures 6.9%10.2%6.4%8.6%
Fiscal Year
City of Clermont, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
90
2005 2006 2007 2008 2009 2010
8,391$ 10,327$ 11,141$ 11,652$ 11,903$ 11,775$
484 456 491 835 674 678
5,2164,2118,34011,9778,6665,733
389 407 462 6431,1031,036
164 226 175 321 178 189
1,1522,4441,7171,209 9031,131
267 7381,101 687 848 379
310 505 3911,683 444 522
16,37319,31423,81829,00724,71921,443
2,053$ 2,694$ 3,079$ 3,640$ 3,654$ 4,081$
5,2856,4529,14110,99910,27511,212
318 343 461 497 490 309
917 9671,1892,9761,1291,620
33 38 48 48 102 50
139 75 129 105 - -
1,0251,2591,55610,0241,8931,878
2,48410,235 941,9091,738 643
855 868 4498,1766,259 493
258 244 440 465 375 181
- - - - - -
13,36723,17516,58638,83925,91520,467
3,006$ (3,861)$ 7,232$ (9,832)$ (1,196)$ 976$
1,081$ 1,676$ 1,265$ 6,468$ 6,684$ 2,088$
(704)(1,212)(756)(5,971)(6,232)(1,645)
- 5,250 - 8,250 - -
931 - - - - -
- - - - - -
1,3085,714 5098,747 452 443
4,314$ 1,853$ 7,741$ (1,085)$ (744)$ 1,419$
10.2%9.3%7.1%23.4%28.9%3.6%
Fiscal Year
91
Fiscal PropertyFranchise Utility
Year Tax Fees Tax Total
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
2009 7,601 2,151 2,152 11,904
2010 6,844 2,373 2,558 11,775
Fiscal SalesState RevenueLocal Option
Year Tax Sharing Gas Tax Total
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
2009 1,033 302 289 1,624
2010 1,053 299 322 1,674
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)
92
Fiscal TotalEstimatedAssessed
Year Less:Total TaxableDirectActualValue as a
EndedReal*PersonalTax ExemptAssessedTaxTaxablePercentage of
Sep 30PropertyPropertyPropertyValueRateValueActual Value
2001491,70164,111105,297450,5153.729 555,81281.06%
2002626,84072,610128,222571,2283.729 699,45081.67%
2003793,58392,764166,209720,1383.729 886,34781.25%
20041,041,341112,546238,373915,5143.7291,153,88779.34%
20051,363,931133,687299,1621,198,4563.7291,497,61880.02%
20061,771,503153,086382,8851,541,7043.7291,924,58980.11%
20072,466,549171,470620,7502,017,2693.1422,638,01976.47%
20082,975,139186,835676,3712,485,6033.1423,161,97478.61%
20093,022,925195,808792,9972,425,7363.1423,218,73375.36%
20102,592,111211,950599,8212,204,2403.1422,804,06178.61%
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)
93
Direct Rate
City of LakeSouthLakeSt. JohnsTotal
Clermont CountyLakeCountyRiver WaterDirect &
FiscalOperatingOperatingVotedAmbulanceSchoolHospitalWaterManagementOverlapping
YearMillageMillageDebt ServiceMSTUDistrictDistrictAuthorityDistrictRates
20013.72905.11700.00000.55008.49501.00000.50000.472019.8630
20023.72905.11700.00000.52898.20201.00000.50000.462019.5389
20033.72905.91700.00000.52898.39501.00000.48190.462020.5138
20043.72905.91700.00000.52898.44001.00000.40800.462020.4849
20053.72905.81700.00000.52897.99001.00000.38310.462019.9100
20063.72905.79700.00000.52897.98101.00000.33700.462019.8349
20073.14205.74700.20000.52897.64801.00000.25300.462018.9809
20083.14204.74100.20000.46517.69800.86660.21300.415817.7415
20093.14204.65110.11010.46517.51700.86660.21300.415817.3807
20103.14204.65110.11010.46517.53200.86660.21300.415817.3957
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 Years 2
(per $1,000 of assessed value)
94
Percentage of Percentage of
Taxable Total TaxableTaxable Total Taxable
Assessed AssessedAssessed Assessed
Taxpayer ValueRankValueValueRankValue
John P. Adams & Ann D. 27,458$ 11.25%
Adams Family LP
Fountains at Clermont LLC17,44820.79%
South Lake Hospital, Inc.14,14230.64%
Sundance Clermont LLC13,41040.61%
Citrus Tower Development13,12250.60%
Clermont Landing LLC 12,67360.57%
Lennar Homes, Inc.13,82070.63%10,641$ 22.36%
Village at East Lake 11,63480.53%5,83381.29%
Wal-Mart Stores East LP10,57390.48%
Lowe's Home Centers Inc.9,773100.44%
Clermont Center LTD 11,30612.51%
Lennar Land Partners 8,52331.89%
Lucas Clermont Ltd Partnership 6,16141.37%
Sprint Florida Inc 7,66951.70%
Levitt Homes, Inc.6,96161.55%
Florida Power Corporation 5,91871.31%
Hurtak, Family Partnership Ltd.5,40991.20%
Mercator Properties, Inc.5,331101.18%
TOTAL 144,053$ 6.54%73,752$ 16.37%
Source: Lake County Property Appraiser
2010 2001
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
95
Fiscal
YearTotal Tax Collections in
EndedLevy for PercentageSubsequent Percentage
SeptemberFiscal YearAmountof LevyYearsAmountof Levy
2001 1,6801,60795.7%14 1,62196.5%
2002 2,1302,05496.4%10 2,06496.9%
2003 2,6852,58696.3%9 2,59596.6%
2004 3,4143,29396.5%10 3,30396.8%
2005 4,4694,31096.4%5 4,31596.6%
2006 5,7495,54496.4%- 5,54496.4%
2007 7,5187,15595.2%17 7,17295.4%
2008 7,8107,42595.1%15 7,44095.3%
2009 7,6227,24395.0%22 7,26595.3%
2010 6,8146,53695.9%5 6,54196.0%
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
96
Business-Type
Fiscal Activities
Year Water & SewerTotalPercentage
EndedRevenueNotesLine ofRefundingPrimaryof Personal
SeptBondsPayableCreditRevenue BondsGovernmentIncome1 Per Capita1
20013556302,000 17,935$20,920*1,979
20026,965459- 17,935$25,359*1,849
20036,965381- 17,935$25,281*1,643
20046,5751,064- 17,935$25,574*1,449
20056,180605- 17,835$24,620*1,230
20065,7755,392- 17,685$28,8525.66%1,312
20075,3605,358- 17,455$28,1735.63%1,231
20084,9355,857- 17,065$27,8574.00%1,187
20094,49538- 16,655$21,1882.95%876
20104,0400- 16,640$20,6802.84%720
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 See the Schedule of Demographic and Economic Statistics on page 85 for personal income and population data.
* Information is not available.
Governmental Activities
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
97
Percentage Amount
Total Applicable toApplicable to
OutstandingCity of ClermontCity of Clermont
Direct:
City of Clermont 4,533$ 100%4,533$
Overlapping:
Lake County 29,820 11%3,280
Total direct and overlapping debt
payable from ad valorem taxes 34,353$ 7,813$
Estimated Population 28,742
Total direct and overlapping debt per capita 271.84$
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, 2010
98
PublicCommunications Total Revenue
FiscalServiceServiceHalf-CentAvailable for
YearTaxesTaxSales TaxDebt ServicePrincipalInterestCoverage
20011,551,762 - 416,0361,967,798 - - -
20021,054,652800,177464,2902,319,119 -1 254,1889.12
20031,172,270808,813540,7172,521,800390,000250,7753.94
20041,381,779910,725780,8633,073,367395,000243,1664.82
20051,552,0001,063,454929,7403,545,194405,000233,6535.55
20061,781,6261,163,9711,156,6944,102,291415,000222,3726.44
20071,881,0921,253,4251,209,7484,344,265415,000228,3386.75
20081,992,0181,279,6531,139,3154,410,986425,000209,6066.95
20092,151,3181,257,3441,033,1414,441,803440,000195,1066.99
20102,558,2811,266,6961,053,0734,878,050455,000179,1597.69
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
99
StateTotal Revenue
FiscalInfrastructureAvailable for
Year Tax Debt ServicePrincipalInterestCoverage
2001 708,636 708,636210,000 39,510 2.84
2002 752,740 752,740225,000 24,915 3.01
2003 996,162 996,162130,000 9,165 7.16
2004 1,233,5981,233,598 - 1 - 1 - 1
2005 1,538,4981,538,498 - 1 - 1 - 1
2006 1,934,4551,934,455 - 1 - 1 - 1
2007 1,920,4861,920,486 - 1 - 1 - 1
2008 1,900,6401,900,640 - 1 - 1 - 1
2009 1,764,9491,764,949 - 1 - 1 - 1
2010 1,780,1771,780,177 - 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
100
Water andWater and
SewerSewerNet Revenue
FiscalOperatingOperatingAvailable for
YearRevenues1 Expenses2 Debt ServicePrincipalInterestCoverage
20014,326,6382,236,1462,090,492 -3 543,7413.84
20025,124,7782,952,5562,172,222 -3 932,1282.33
20035,901,9073,461,2162,440,691 -3 932,1282.62
20047,261,2394,339,9592,921,280 -3 932,1283.13
20057,841,8304,773,6393,068,191100,000929,9282.98
20069,421,8345,456,6893,965,145150,000924,3533.69
200712,875,1708,820,9324,054,238230,000915,8023.54
200810,075,7067,192,3142,883,392390,000892,6882.25
200910,561,9496,511,4874,050,462410,000883,2063.13
201010,001,8366,999,0963,002,740430,000744,892 4 2.56
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.
4 Includes interest paid on the 2000 and 2009 Refunding Bonds
Water and Sewer Revenue and Refunding Bonds
Debt Service
City of Clermont, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years
101
Personal Education
Income Level in
(amountsPer Capita Years of
Fiscal expressed inPersonalMedianFormalSchoolUnemploy-
YearPopulation1 thousands)Income2 Age2 Schooling2 Enrollment3 ment Rate4
200110,571****4,5003.9%
200213,718****4,6165.8%
200315,391****4,6305.4%
200417,654****5,2194.6%
200520,017****5,1654.0%
200621,986509,98723,19635.913.55,3753.3%
200722,882500,33821,86636.813.65,4113.8%
200823,476696,04029,64939.613.24,2087.1%
200924,199717,59729,65439.713.24,24412.3%
201028,742727,00025,29436.813.64,20512.4%
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
102
Percentage of Percentage of
Total City Total City
Employer EmployeesRankEmploymentEmployeesRankEmployment
Total City Employment18,3146,965
Publix Supermarkets 61413.35%7761.11%
Lake County Sheriff's Office 60023.28%
Walmart 59533.25%
Department of Corrections 42042.29%
Lowe's 32051.75%
Target Corporation 31261.70%
Ford of Clermont 30071.64%7671.09%
Winn Dixie 29481.61%
Darden Restaurants Inc.28891.57%
Lake County School System 250101.37%34624.97%
South Lake Hospital, Inc.45416.52%
Westminister Care of Clermont 16032.30%
City of Clermont 14042.01%
CBS Builders Supply Inc.11051.58%
Exceletech, Inc.7081.01%
Kmart 7091.01%
Sonny's Real Pit Bar-B-Q 52100.75%
TOTAL 3,993 21.80%1,555 22.33%
Source: Florida Agency for Workforce Innovation, Labor Market Statistics Center
2010 2001
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
103
Usage Percentage ofUsage Percentage of
(thousands Total City(thousands Total City
Employer of gallons)RankMetered Flow1 of gallons)RankMetered Flow
Kings Ridge 277,700113.52%* * *
Lake County Schools 31,42421.53%* * *
City of Clermont 26,25531.28%* * *
South Lake Hospital 25,16341.22%* * *
Westminster Comm Care Service15,49750.75%* * *
Gardens at Citrus Tower 12,16560.59%* * *
The Vista at Lost Lake 11,52670.56%* * *
Sundance Clermont Apartments9,70380.47%* * *
Emerald Lakes of Clermont 7,76490.38%* * *
Osprey Ridge Apartments LTD7,601100.37%* * *
TOTAL 424,798 20.68%* *
1 The City of Clermont had a total metered water flow of approximately 2,054,236,000 gallons for the
12-month period ending September 30, 2010
* Information is not available.
2010 2001
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
104
Usage Percentage ofUsage Percentage of
(thousands Total City(thousands Total City
Employer of gallons)RankMetered Flow1 of gallons)RankMetered Flow
South Lake Hospital 22,60611.65%* * *
Lake County Schools 16,96021.24%* * *
Westminster Comm Care Service14,64331.07%* * *
The Vista at Lost Lake 11,52640.84%* * *
Emerald Lakes of Clermont 7,76450.57%* * *
Village at East Lake 7,13960.52%* * *
Empirian Property Management5,77170.42%* * *
John Sandargas 4,20880.31%* * *
Clermont Dialysis LLC 3,42690.25%* * *
Red Lobster 3,410100.25%* * *
TOTAL 97,453 7.11%* *
1 The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,370,600,000
gallons for the 12-month period ending September 30, 2010
* Information is not available.
2010 2001
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
105
Function 2001 2002 2003 2004
General Government 17.5017.0023.0022.50
Public Safety:
Police
Sworn personnel 27.0029.0031.0034.00
Non sworn personnel 10.0010.0011.0012.00
Fire
Firefighters 11.0012.0013.0019.00
Other personnel 1.00 1.00 1.00 1.00
Physical Environment 5.00 - 0.50 7.50
Transportation 8.2111.3513.1613.25
Human Services 0.50 1.00 1.75 2.25
Culture & Recreation 19.5020.7523.5019.45
Water 14.1218.7220.3222.90
Sewer 14.8219.0219.2225.80
Stormwater 2.49 2.20 4.49 4.65
Sanitation 8.86 8.96 9.06 8.70
Total 140.00151.00171.00193.00
Source: City of Clermont Administrative Services Department.
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Full-time Equivalent Employees as of September 30,
106
2005 2006 2007 2008 2009 2010
25.5027.5030.5030.5031.0028.00
38.0045.0051.0053.0053.0057.00
16.0016.0016.0017.0017.0016.00
22.0038.0045.0049.0047.8548.00
1.00 2.00 2.00 2.00 2.00 2.00
7.5010.0010.0010.0011.6510.90
13.2513.7015.2015.6015.6015.35
2.25 2.00 2.00 2.00 0.00 0.00
19.4522.2026.2026.6025.6021.10
23.4025.4026.9029.4029.4029.15
25.3026.3027.8026.3026.3026.05
4.65 7.20 8.70 8.80 8.80 9.15
8.70 8.7014.7016.8016.8016.30
207.00244.00276.00287.00285.00279.00
Full-time Equivalent Employees as of September 30,
107
Function 2001 2002 2003 2004
General Government
Municipal boundary (square miles)11.2911.1811.8811.97
Business Tax Receipts issued 1,2021,2901,4681,551
Commercial construction (units)17 39 22 24
Commercial construction
(value in thousands)17,26452,34318,75814,272
Residential construction (units)884 829 9591,155
Residential construction
(value in thousands)82,04077,470124,837158,458
Public Safety:
Police
Auto accidents 374 390 489 541
Physical arrests 462 465 449 414
911 calls received * * * 5,580
Evidence processed (pieces)3111,1231,0751,054
Parking violations 8 36 48 87
Traffic violations 3,4893,6232,7132,394
Fire
Volunteer firefighters 34 34 34 34
Fire inspections completed 279 494 441 483
Emergency calls answered 1,5562,2712,5063,093
Non-emergency calls answered 65 77 86 143
Human Services
Animals captured**488 521 364 562
Water
Residential customers 7,3038,46110,52912,751
Commercial customers 579 644 723 817
Annual water usage
(thousands of gallons)1,365,1961,299,7011,338,8181,655,203
Sewer
Residential customers 5,0016,2437,6509,217
Commercial customers 511 581 673 767
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
108
2005 2006 2007 2008 2009 2010
12.4514.1314.3714.4214.4314.76
1,7951,9852,1412,2631,7711,833
23 38 24 42 19 10
7,11517,53424,43318,85913,2238,357
673 635 324 301 204 305
103,672186,189136,47756,57856,09253,202
671 6251,1921,272 972 955
500 707 933 842 949 854
6,2627,0086,3176,0466,8285,230
1,1271,6101,5851,3001,6521,349
71 161 140 145 107 137
2,8555,2595,1645,1034,5534,981
27 27 9 8 10 6
457 625 414 880 9792,121
3,3213,1323,0483,1773,1553,112
143 189 198 234 434 352
445 495 652 0 0 0
14,28415,73316,39416,95917,37511,376
921 9931,0691,1561,2011,033
1,788,3372,121,5882,654,3522,589,6642,312,9622,054,236
10,17611,12511,55411,91312,15411,583
883 9551,0311,1201,158 944
Fiscal Year
109
Function 20012002 2003 2004
General Government
Public Safety:
Police
Police stations 1 1 1 1
Patrol units 27 29 31 34
Fire
Fire stations 3 3 3 3
Staffed fire stations 2 2 2 2
Fire hydrants 840940 1,064 1,200
Fire apparatus 7 6 7 7
Staffed fire apparatus 2 2 2 2
ALS non-transport units 1 1 2 3
Transportation
Streets paved (miles)77.0088.74 92.90 97.00
Streetlights 8751,056 1,056 1,106
Culture & Recreation
Number of parks 22 22 22 22
Parks acreage 101.5101.5 101.5 101.5
Scenic linear trail (miles)3.5 3.5 3.5 3.5
Tennis courts 6 6 6 8
Fishing piers 4 4 4 4
Boat ramp 1 1 1 1
Libraries 1 1 1 1
Water
Miles of water mains *88.74 88.74 92.94
Miles of sanitary sewers 34.0039.05 39.05 41.15
Miles of storm sewers 8.509.11 9.11 9.53
Sources: Various government departments.
* Data not available.
Fiscal Year
City of Clermont, Florida
Capital Asset Statistics by Function
Last Ten Fiscal Years
110
2005 2006 2007 2008 2009 2010
111111
38 45 45 45 45 45
333334
223333
1,431 1,630 1,896 2,140 2,140 2,012
899998
345555
333344
101.39109.94122.93126.16131.72133.20
1,131 1,231 1,256 1,331 1,331 1,352
22 22 22 22 22 22
101.5 230.5 230.5 230.5 230.5 230.5
5.7 5.7 5.7 5.7 5.7 5.7
888888
444444
111111
111111
97.23104.52115.02115.98122.83124.11
44.26 49.51 56.98 59.40 65.18 66.19
10.27 11.13 18.07 20.88 24.61 26.32
Fiscal Year
111
112
113
We noted certain matters that we reported to management of the City of Clermont, Florida,
in a separate letter dated March 23, 2011. The City’s response to our findings identified in
our audit is included in this report. 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 23, 2011
114
^^
^
^
C
I
T
y
O
F
C
L
E
R
M
O
N
T
Af
f
i
d
a
v
i
t
o
f
I
m
p
a
c
t
F
e
e
C
o
m
p
l
i
a
n
c
e
Im
p
a
c
t
f
e
e
c
o
l
l
e
c
t
i
o
n
s
,
e
x
p
e
n
d
i
t
u
r
e
s
a
n
d
a
c
c
o
u
n
t
i
n
g
a
r
e
p
r
o
v
i
d
e
d
f
o
r
in
s
e
p
a
r
a
t
e
a
c
c
o
u
n
t
i
n
g
f
u
n
d
s
a
n
d
c
o
m
p
l
y
w
i
t
h
F
l
o
r
i
d
a
S
t
a
t
u
t
e
1
6
3
.
3
1
8
0
1
.
J
o
s
e
p
h
V
a
il
e
Di
r
e
c
t
o
r
A
is
t
r
a
t
i
v
e
S
e
r
v
i
c
e
s
.
T^
e
f
o
r
e
g
o
i
n
g
i
n
s
t
r
u
m
e
n
t
w
a
s
a
c
k
n
o
w
l
e
d
g
e
d
b
e
f
o
r
e
m
e
t
h
i
s
^
Q
d
a
y
o
f
pr"
:
I
,
2
0
1
1
b
y
J
o
s
e
p
h
V
a
n
Z
i
l
e
.
.
.
.
.
.
B
""
"
I
;
"
^
.
"
"
"
-
"
.
.
.
.
.
^
Co
m
m
#
D
D
0
8
1
0
0
7
1
|
II.
BE
C
K
f
-
C
-
V
o
-
u
-
N
-
G
-
"
.
.
.
.
.
.
.
r
n
VII
I
,
.
'}'
,
"
.
y
<.!
'%
S
j
^
%
®J»
^
=
Ex
p
i
r
e
s
1
0
/
3
1
/
2
0
1
2
s
e
.
'*
.
a
s
No
t
a
r
y
S
i
g
n
a
t
u
r
e
&
p
Flo
r
i
d
a
N
o
t
a
i
y
A
s
s
n
.
.
l
n
c
;
'.
.
«
.
.
.
.
;
."
.
.
.
.
.
"
.
"
"
"
""
"
.
.
.
«
.
.
.
"
"
"
;
^
Pe
r
s
o
n
a
l
l
y
K
n
o
w
n
or
P
r
o
d
u
c
e
d
I
d
e
n
t
i
f
i
c
a
t
i
o
n
Ty
p
e
o
f
I
d
e
n
t
i
f
i
c
a
t
i
o
n
P
r
o
d
u
c
e
d
P
.
O
.
B
O
X
1
2
0
2
1
9
-
C
L
E
R
M
O
N
T
,
F
L
O
R
I
D
A
3
4
7
1
2
-
0
2
1
9
P
H
O
N
E
:
3
5
2
-
2
4
1
-
7
3
6
0
F
A
X
:
3
5
2
-
3
9
4
-
4
0
8
2
»
w
w
w
.
C
i
t
v
o
f
C
l
e
r
m
o
n
t
F
L
.
c
o
m
11
5
116
117
• Section 10.554(1)(i)5., Rules of the Auditor General, requires based on professional
judgment, the reporting of the following matters that are inconsequential to the financial
statements, considering both quantitative and qualitative factors: (1) violations of laws,
rules, regulations, and contractual provisions or abuse that have occurred, or were likely
to have occurred, and would have an immaterial effect on the financial statements; (2)
improper expenditures or illegal acts that would have an immaterial effect on the
financial statements; and (3) control deficiencies that are not significant deficiencies,
including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the
omission of required disclosures from the financial statements); (b) failures to properly
record financial transactions; and (c) other inaccuracies, shortages, defalcations, and
instances of fraud discovered by, or that come to the attention of, the auditor. This
information has been disclosed in Appendix A to this report.
• Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official
title and legal authority for the primary government and each component unit of the
reporting entity be disclosed in this management letter, unless disclosed in the notes to
the financial statements. This information has been disclosed in the notes to the
financial statements.
• Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included
as to whether or not the local governmental entity has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific
condition(s) met. In connection with our audit, we determined that the City of Clermont,
Florida did not meet any of the conditions described in Section 218.503(1), Florida
Statutes.
• Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the City of Clermont, Florida for the fiscal year
ended September 30, 2010 filed with the Florida Department of Financial Services
pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual
financial audit report for the fiscal year ended September 30, 2010. We determined that
these two reports are in agreement.
• Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, require that we
apply financial condition assessment procedures. In connection with our audit, we
applied financial condition assessment procedures. It is management’s responsibility to
monitor the entity’s financial condition, and our financial condition assessment was
based in part on representations made by management and the review of financial
information provided by same.
This management letter is intended solely for the information of the City of Clermont, Florida
and management, and the Florida Auditor General, and is not intended to be and should not be
used by anyone other than these specified parties.
March 23, 2011
118
CITY OF CLERMONT, FLORIDA
APPENDIX A – CURRENT YEAR VIOLATIONS OF LAWS,
RULES, REGULATIONS, AND CONTRACTUAL PROVISIONS
Year Ended September 30, 2010
ML 10-1 – Appropriations in Excess of Funds Available
Criteria – Appropriations budgeted in a fund may not be in excess of anticipated revenue and
available fund balance.
Condition – The Community Redevelopment Special Revenue Fund has appropriations in
excess of anticipated revenue and available fund balance.
Cause – The available fund balance was less than originally budgeted and the budget was
not amended within 60 days of year end as required by Florida Statutes.
Effect – A deficit fund balance could result.
Recommendation – We recommend that the budget be amended within 60 days of year end.
ML 10-2 Deficit Net Assets
Criteria - The city should establish sufficient cost allocation to fully cover the cost of claims
paid.
Condition – At September 30, 2010 the Internal Service Fund had a deficit net asset balance
of $279,865.
Cause - The amount charged to each fund is not sufficient to cover the cost of claims paid.
Effect - The fund requires loans from the general and enterprise funds for paying claims.
Recommendation – We recommend that management evaluate the amount charged to each
fund for insurance, and increase the allocation to fully cover the cost of claims paid.
119
CITY OF CLERMONT, FLORIDA
APPENDIX B – PRIOR YEAR RECOMMENDATIONS
Year Ended September 30, 2010
No.Prior Year's Observations
Observation
is Still
Relevant
Observation
Addressed or
No Longer
Relevant
ML 09-01Budget Amendments X
ML 09-02Deficit Net Assets X
120
^^
h
,
d
C
N
T
Y
O
F
C
L
E
R
M
O
N
T
R
E
S
P
O
N
S
E
T
O
M
A
N
A
G
E
M
E
N
T
C
O
M
M
E
N
T
S
A
u
d
i
t
o
r
G
e
n
e
r
a
l
St
a
t
e
o
f
F
l
o
r
i
d
a
Th
i
s
l
e
t
t
e
r
c
o
n
t
a
i
n
s
r
e
s
p
o
n
s
e
s
t
o
t
h
e
m
a
n
a
g
e
m
e
n
t
l
e
t
t
e
r
a
s
r
e
q
u
i
r
e
d
b
y
t
h
e
Au
d
i
t
o
r
G
e
n
e
r
a
l
o
f
t
h
e
S
t
a
t
e
o
f
F
l
o
r
i
d
a
.
AD
p
r
o
p
r
i
a
t
i
o
n
s
i
n
E
x
c
e
s
s
o
f
F
u
n
d
s
A
v
a
i
l
a
b
l
e
Th
e
C
i
t
y
w
i
l
l
a
m
e
n
d
t
h
e
b
u
d
g
e
t
w
i
t
h
i
n
6
0
d
a
y
s
o
f
y
e
a
r
e
n
d
t
o
e
n
s
u
r
e
ap
p
r
o
p
r
i
a
t
i
o
n
s
d
o
n
o
t
e
x
c
e
e
d
a
n
t
i
c
i
p
a
t
e
d
r
e
v
e
n
u
e
a
n
d
a
v
a
i
l
a
b
l
e
f
u
n
d
b
a
l
a
n
c
e
.
I
n
ad
d
i
t
i
o
n
,
i
t
i
s
i
m
p
o
r
t
a
n
t
t
o
n
o
t
e
t
h
a
t
t
h
e
o
r
i
g
i
n
a
l
b
u
d
g
e
t
a
p
p
r
o
v
e
d
b
y
t
h
e
C
i
t
y
d
i
d
no
t
p
r
o
v
i
d
e
f
o
r
a
p
p
r
o
p
r
i
a
t
i
o
n
s
i
n
e
x
c
e
s
s
o
f
a
n
t
i
c
i
p
a
t
e
d
f
u
n
d
s
a
n
d
t
h
a
t
a
d
e
f
i
c
i
t
fu
n
d
b
a
l
a
n
c
e
d
i
d
n
o
t
o
c
c
u
r
d
u
e
t
o
t
h
e
b
u
d
g
e
t
e
d
p
r
o
j
e
c
t
b
e
i
n
g
p
u
t
o
n
h
o
l
d
.
De
f
i
c
i
t
N
e
t
A
s
s
e
t
s
Th
e
C
i
t
y
h
a
s
m
a
d
e
a
d
d
i
t
i
o
n
a
l
c
h
a
n
g
e
s
t
o
t
h
e
I
n
s
u
r
a
n
c
e
P
l
a
n
t
h
a
t
w
i
l
l
r
e
d
u
c
e
ex
p
e
n
d
i
t
u
r
e
s
a
n
d
h
a
s
i
n
c
r
e
a
s
e
d
t
h
e
c
o
n
t
r
i
b
u
t
i
o
n
s
t
o
t
h
e
f
u
n
d
.
M
a
n
a
g
e
m
e
n
t
w
i
l
l
co
n
t
i
n
u
e
t
o
e
v
a
l
u
a
t
e
t
h
e
f
u
n
d
t
o
e
n
s
u
r
e
t
h
a
t
t
h
e
a
m
o
u
n
t
c
h
a
r
g
e
d
f
u
l
l
y
c
o
v
e
r
s
t
h
e
co
s
t
o
f
c
l
a
i
m
s
p
a
i
d
.
<^
^
p
Ma
r
c
h
2
9
,
2
0
1
1
Ph
n
e
A
d
m
i
n
i
e
S
e
r
v
i
c
e
s
D
i
r
e
c
t
o
r
Ci
t
y
o
f
C
l
e
r
m
o
n
t
,
F
l
o
r
i
d
a
P
.
O
.
B
O
X
1
2
0
2
1
9
C
L
E
R
M
O
N
T
,
F
L
O
R
I
D
A
3
4
7
1
2
-
0
2
1
9
P
H
O
N
E
:
3
5
2
-
2
4
1
-
7
3
6
0
F
A
X
:
3
5
2
-
3
9
4
-
4
0
8
2
w
w
w
.
C
i
t
v
o
f
C
l
e
n
n
o
n
t
F
L
.
c
o
m
12
1
122
123
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level
of management. Management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were
material, either individually or in the aggregate, to the financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction,
that could be significant to the financial statements or the auditor’s report. We are pleased to
report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated March 23, 2011.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a
consultation involves application of an accounting principle to the governmental unit’s financial
statements or a determination of the type of auditor’s opinion that may be expressed on those
statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the governmental unit’s
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
This information is intended solely for the 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.
Very truly yours,
March 23, 2011
124