Comprehensive Annual Financial Report - 2012-2013CITYOF CLERMONT
FLORIDA
Comprehensive Annual Financial ReportComprehensive Annual Financial Report
Fiscal Year Ended September 30, 2013
Clermont Community Center
The Clermont Community Center had its grand opening on April 17, 2013.
The $2.2-million building has been a welcome addition to the City of
Clermont and the site of hundreds of weddings, receptions, quinceaneras
and civic meetings in addition to its use by the City. The stunning 3,935-
square-foot banquet and event venue offers the community everything
from rentals for the entire building to small-to-medium meeting spaces, a
patio, board room and commercial kitchen. This versatile, popular
addition to our City includes Wi-Fi and is home to the South Lake
Chamber of Commerce.
City of Clermont, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2013
Prepared By
Finance
Regina M. Frazier Lacy Smith-Castillo
Assistant Finance Director Accountant
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CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2013
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 Position 15
Statement of Activities 16
Fund Financial Statements:
Balance Sheet - Governmental Funds 17
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds 18
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of
Activities
19
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - General Fund
20
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual – Infrastructure Special Revenue Fund
22
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual – Community Redevelopment
Special Revenue Fund
23
Statement of Net Position - Proprietary Funds 24
Statement of Revenues, Expenses and Changes in
Fund Net Position - Proprietary Funds
27
Statement of Cash Flows – Proprietary Funds 28
Statement of Fiduciary Net Position - Fiduciary Funds 30
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 31
Notes to Financial Statements 33
Required Supplementary Information 65
Major Governmental Funds: 69
Capital Projects Fund 70
Debt Service Fund 71
Other Governmental Funds: 73
Combining Balance Sheet – Other Governmental Funds 74
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CITY OF CLERMONT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2013
Page
II. Financial Section - Continued:
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Other Governmental Funds 76
Schedule of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual:
Special Revenue Funds 78
Fiduciary Funds: 82
Combining Statement of Fiduciary Net Position 83
Combining Statement of Changes in Fiduciary Net Position 84
III. Statistical Section:
Net Position by Component 86
Changes in Net Position 88
Fund Balances of Governmental Funds 92
Changes in Fund Balances of Governmental Funds 94
Governmental Activities Tax Revenues by Source 96
Assessed Value and Estimated Actual Value of Taxable Property 97
Property Tax Rates – Direct and Overlapping Governments 98
Principal Property Taxpayers 99
Property Tax Levies and Collections 100
Ratios of Outstanding Debt by Type 101
Direct and Overlapping Governmental Activities Debt 102
Pledged-Revenue Coverage 103
Demographic and Economic Statistics 105
Principal Employers 106
Principal Water Customers 107
Principal Sewer Customers 108
Full-time Equivalent City Government Employees by Function 109
Operating Indicators by Function 111
Capital Asset Statistics by Function 113
IV. Other Reports:
Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance and Other Matters based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards 115
Management Letter 117
Response to Management Comments 120
Communication with those Charged with Governance 123
CITY OF CLERMONT
P.O. BOX 120219 · CLERMONT, FLORIDA 34712-0219 · PHONE: 352-241-7360 · FAX: 352-394-4082
www.CityofClermontFL.com
March 28, 2014
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, 2013. 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, 2013.
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, 2013, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unmodified opinion that the City of Clermont’s financial statements for the fiscal year
ended September 30, 2013, 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
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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 14.95 square miles and population of approximately 30,201. 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 Recreation and Events Department operates 23
parks, 5.7 miles of scenic paved trails, 5 piers measuring a total of 996 feet, 1-612 foot
boardwalk, 7 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
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and final amended budget-to-actual comparisons are provided in this report for each
individual governmental fund. The General Fund is presented on pages 20-21, the
Infrastructure Fund is presented on page 22 and the Community Redevelopment Special
Revenue fund is presented on page 23 as part of the basic financial statements for the
governmental funds. The Capital Projects Fund is presented on page 70 and the Debt
Service Fund is presented on page 71, followed by the other governmental funds, which
start on page 76.
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, 2013, Lake County’s unemployment rate was 6.9%, which is a decrease
of 2% from 2012. Clermont’s unemployment rate was below the County average for the
3rd year in a row at 5.8% for 2013. This is lower than both the state’s average of 7.1%
and the national average of 7.4%. Educational institutions in Clermont such as Lake-
Sumter State 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 in the
planning/design phase for the City:
The purchase of a new City facility (yet to be named) - In December 2013 a
69,000 square foot facility on 45 acres with recreational and entertainment
amenities was purchased and is scheduled to open in June 2014. The total cost
to purchase, renovate and open the facility is anticipated to be $6.5 million. The
purchase was funded by a bank loan with repayment to come from the general
fund, recreation impact fees, and police impact fees. Renovations are being
funded primarily by the general fund.
The replacement of the existing Police Station – Along with the purchase of the
new facility, the City has decided to move the construction of the new police
station from the property we originally purchased to this new site. This change
requires new plans that are currently in the design phase. Administrative
personnel will occupy 10,000 square feet of the existing building and an
additional 16,000 square feet will be constructed. The project is now anticipated
to cost $4.5 million (a savings of $1.8 million) and will be funded from police
impact fees and infrastructure sales taxes.
Lake Hiawatha Preserve - The development of the 220-acre passive park located
on Lake Hiawatha and Lake Minneola. The first phase of the project is
vi
anticipated to cost $2.76 million and will be funded from grants and recreation
impact fees.
The construction of the East-West Water System Interconnects – The connection
of the two water systems at multiple locations to improve water quality, system
hydraulics and reliability. The project is anticipated to cost $1.25 million 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.
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 $52,709,167.47 and the average
investment earnings rate was 0.41%. 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 $26,011,990 and the average investment income was
11.98%.
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, 2012. This was the twenty-fifth 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.
vii
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 and Finance Department.
We would like to express our appreciation to all members of these departments who
assisted and contributed to the preparation of this report. 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.
Respectfully submitted,
_____________________________ _____________________________
Darren Gray Joseph Van Zile
City Manager Finance Director
xi
CITY OF CLERMONT, FLORIDA
LIST OF ELECTED AND APPOINTED OFFICIALS
SEPTEMBER 30, 2013
ELECTED OFFICIALS
Mayor Harold Turville, Jr.
Mayor Pro-Tem Ray Goodgame
Council Member Keith Mullins
Council Member Rick VanWagner
Council Member Timothy Bates
APPOINTED OFFICIALS
City Manager Darren Gray
Assistant City Manager Scott Blankenship
City Attorney Dan Mantzaris
City Clerk Tracy Ackroyd
Economic Development Director James Hitt
Environmental Services Director James Kinzler
Finance Director Joseph Van Zile
Fire Chief Carle Bishop
Human Resources Director Susan Irby
Information Technology Director Don Dennis
Planning Director Barbara Hollerand
Police Chief Charles Broadway
Public Works Director Stoney Brunson
CITY OFCLERMONT
CITIZENS
CLERMONTCITY COUNCIL
COMMITTEESCITYATTORNEY
CITYMANAGER
POLICE FIRE HUMANRESOURCES INFORMATIONTECHNOLOGY FINANCE
ASSISTANTCITY MANAGER
ENVIRONMENTALSERVICES ECONOMICDEVELOPMENT PLANNING ANDZONING PARKS ANDRECREATION PUBLICWORKSCITY CLERK
- Records Management
- Cemetery
- Election Qualifying
- Agenda Development
- Criminal Investigations
- Traffic Enforcement
- Road Patrol
- Community Relations
- Fire Suppression
- Special Operations
- Emergency Medical Services
- Fire Inspection and Prevention
- Volunteer and Reserve Programs
- Recruitment
- Benefits
- Employee Relations
- Safety
- GIS
- Network Administration
- Website management
- Application Support
- Telecommunication
- Security Systems
- Finance
- Utility Billing
- Risk Management
- Budget
- Purchasing
- Water
- Sanitation
- Sewer
- Stormwater
- CRA
- Economic Development
- Program Development
- Permitting
- Occupational Licenses
- Zoning
- Code Enforcement
- Building Services
- Program Development
- Program Management
- Event Planning
- Facility Scheduling
- Capital Improvements
- Construction
- Inspections
- Transportation
- Fleet
- Facilities
- Property Maintenance
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Clermont, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Clermont, Florida, as
of and for the year ended September 30, 2013, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
City of Clermont’s management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
MCDIRMIT DAVIS & COMPANY, LLC
934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
1
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund, and
the aggregate remaining fund information of City of Clermont, as of September 30, 2013, and the respective
changes in financial position and, where applicable, cash flows thereof and the respective budgetary
comparison for the General Fund Infrastructure Special Revenue Fund, and Community Redevelopment
Special Revenue Fund for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
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 page 3 through
13 and 65 through 67 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise City of Clermont’s basic financial statements. 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 financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and related directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements
as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated March 27, 2014 on
our consideration of City of Clermont’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering City of Clermont’s internal control over financial reporting
and compliance.
March 27, 2014
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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, 2013. 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 and deferred outflows of resources exceeded its liabilities
at September 30, 2013 by $148,753,079 (net position). Of this amount, $31,914,535
(unrestricted net assets) may be used to meet the City’s ongoing obligations to citizens
and creditors.
The City’s total net position increased by $5,679,872 (or 4%) over the previous fiscal
year.
At September 30, 2013, the City of Clermont’s governmental funds reported combined
ending fund balances of $19,323,399 a decrease of $1,199,729 from the previous fiscal
year. Of this amount $8,878,429 (unassigned fund balance) is available for spending at
the government’s discretion.
The General Fund, the City’s primary operating fund, reported an unassigned fund
balance of $8,878,429, which represents 50.3% of total General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Clermont’s
basic financial statements. The City’s basic financial statements are comprised of three
components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This report also contains other supplementary information in addition to
the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Clermont’s financial position, in a
manner similar to a private-sector business. They include a Statement of Net Position and a
Statement of Activities. These statements appear on pages 15 and 16 of the report.
The Statement of Net Position presents information on all of the City’s assets and liabilities and
deferred inflows/outflows of resources, with the difference between the two reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Clermont that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City of Clermont
include general government, public safety, physical environment, transportation, economic
environment, and culture and recreation. The business-type activities of the City of Clermont
include water, sewer, sanitation, and stormwater utilities.
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, Capital Projects
Fund, Infrastructure Fund, Community Redevelopment Fund and the Debt Service Fund, all of
which are considered to be major funds. Data from the other five 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 20-21), the
Infrastructure Fund (page 22) and the Community Redevelopment Fund (page 23) to demonstrate
compliance with budgets. Other major and nonmajor funds comparisons can be found beginning
on page 69.
The basic governmental fund financial statements can be found on pages 17 - 23 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 24-29 of this report.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City of Clermont uses enterprise funds to account for
water, sewer, sanitation and stormwater utilities. Internal service funds are an accounting tool used
to accumulate and allocate costs internally among various functions. The City utilizes an internal
service fund for its health insurance. Because services accounted for in the internal service fund
predominately benefit governmental rather than business-type functions, it has been included
within the governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for water, sewer and sanitation which are all considered to be major funds. Data for the
Stormwater Fund is also included since it is the only nonmajor fund.
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 30 - 31 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements. The
notes to financial statements can be found on pages 33 - 63 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 70 -
84 of this report.
Government-Wide Financial Analysis
The following is a summary of the City’s net position for governmental and business-type activities
for the current year as compared to the prior year. For more detail see the Statement of Net
Position on pages 15 and 16.
2012-132011-122012-132011-122012-132011-12
Assets:
Current and other assets 20,829,483$ 22,237,315$ 36,020,100$ 32,577,071$ 56,849,583$ 54,814,386$
Capital assets 42,562,445 39,691,706 72,841,377 71,859,641 115,403,822 111,551,347
Total assets 63,391,928 61,929,021 108,861,477 104,436,712 172,253,405 166,365,733
Deferred Outflows of Resources:
Deferred charge of refunding - - 580,436 - 580,436 -
Total deferred outflows of resources - - 580,436 - 580,436 -
Liabilities:
Long‐term liabilities outstanding 5,527,257 5,384,288 16,045,238 15,802,194 21,572,495 21,186,482
Other liabilities 701,362 1,355,270 1,806,905 1,480,326 2,508,267 2,835,596
Total liabilities 6,228,619 6,739,558 17,852,143 17,282,520 24,080,762 24,022,078
Invested in capital assets,
Net of related debt 39,950,445 36,611,706 57,862,471 57,241,409 97,812,916 93,853,115
Restricted 9,489,732 8,877,028 9,535,896 9,477,232 19,025,628 18,354,260
Unrestricted 7,723,132 9,700,729 24,191,403 20,435,551 31,914,535 30,136,280
Total net position 57,163,309$ 55,189,463$ 91,589,770$ 87,154,192$ 148,753,079$ 142,343,655$
Net Position
Governmental ActivitiesBusiness‐type ActivitiesTotal
The City’s total net position at September 30, 2013 was $148,753,079. Of the City’s total net
position $97,812,916 (65.8%) 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.
5
An additional portion of the City’s total net position, $19,025,628 (12.8%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of the City’s
total net position, $31,914,535 (21.4%) is unrestricted. These assets may be used at the City’s
discretion in meeting its ongoing obligations to citizens and creditors.
The City’s net position increased by $5,679,872 during the current fiscal year. Major components
of this increase are discussed in the Governmental and Business-Type Activities sections to follow.
Restricted reserves represent the accumulation of impact fee funds for upcoming and ongoing
capital projects.
The following is a summary of the City’s governmental and business-type activities for fiscal year
2012-13, including revenues and expenses, with a comparison to the prior year. For more detail
see the Statement of Activities on page 16.
2012-132011-122012-132011-122012-132011-12
Revenues:
Program revenues -
Charges for services 4,419,357$ 2,703,623$ 14,209,383$ 13,829,412$ 18,628,740$ 16,533,035$
Operating grants and
contributions 895,725 1,190,851 - - 895,725 1,190,851
Capital grants and
contributions 112,089 27,477 3,429,673 1,751,977 3,541,762 1,779,454
General revenues -- -
Property Taxes 5,349,583 5,535,397 - - 5,349,583 5,535,397
Business Taxes 111,195 113,140 - - 111,195 113,140
Franchise Fees 2,122,797 2,188,928 - - 2,122,797 2,188,928
Utility Taxes 2,490,461 2,430,440 - - 2,490,461 2,430,440
Intergovernmental 5,801,871 5,062,701 - - 5,801,871 5,062,701
Investment income and
miscellaneous 378,401 388,167 149,251 288,699 527,652 676,866
Gain on sale of capital
assets - - 17,815 - 17,815 -
Total revenues 21,681,479 19,640,724 17,806,122 15,870,088 39,487,601 35,510,812
Expenses:
General government 3,258,417 4,211,118 - - 3,258,417 4,211,118
Public safety 12,685,206 12,167,658 - - 12,685,206 12,167,658
Physical environment 303,130 248,457 - - 303,130 248,457
Transportation 1,724,824 1,718,598 - - 1,724,824 1,718,598
Economic environment 199,676 115,692 - - 199,676 115,692
Culture and recreation 1,927,632 1,045,549 - - 1,927,632 1,045,549
Interest on long-term debt 87,287 136,817 - - 87,287 136,817
Water - - 4,153,922 4,051,369 4,153,922 4,051,369
Sewer - - 6,105,933 5,752,342 6,105,933 5,752,342
Sanitation - - 2,464,867 2,567,157 2,464,867 2,567,157
Stormwater - - 896,835 939,087 896,835 939,087
Total expenses 20,186,172 19,643,889 13,621,557 13,309,955 33,807,729 32,953,844
Increase (Decrease) in Net
Position Before Transfers 1,495,307 (3,165) 4,184,565 2,560,133 5,679,872 2,556,968
Transfers 478,539 452,558 (478,539) (452,558) - -
Increase in Net Position 1,973,846 449,393 3,706,026 2,107,575 5,679,872 2,556,968
Net Position – Beginning, as
restated 55,189,463 54,740,070 87,883,744 85,046,617 143,073,207 139,786,687
Net Position – Ending 57,163,309$ 55,189,463$ 91,589,770$ 87,154,192$ 148,753,079$ 142,343,655$
Governmental Activities
Changes in Net Position
Business-type Activities Total
6
Governmental activities - Governmental activities increased the City of Clermont’s net position by
$1,973,846, which is primarily due to increased general government revenues.
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
$3,258,417
$12,685,206
$1,724,824 $1,927,632
$502,806 $87,287
$2,117,222 $1,658,283
$279,843
$1,371,823
$0 $0
Expenses and Program Revenues -Governmental Activities
Expenses
Program revenues
Intergovernmental,
26.8%
Charges for services,
20.4%
Operating grants and
contributions, 4.1%Investment income &
miscellaneous , 1.7%
Other taxes, 21.8%
Capital grants and
contributions, 0.5%
Property taxes, 24.7%
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 position by
$3,706,026. This change was due to increased revenue from services totaling $379,971 and
capital contributions totaling $3,417,415. 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 Reclaim Water System Expansion and the Supplemental
Well.
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
$4,153,922
$6,105,933
$2,464,867
$896,835
$6,335,756
$7,782,050
$2,802,771
$885,545
Expenses and Program Revenues -Business Type Activities
Expenses
Program Revenue
Investment income &
miscellaneous , 1%
Charges for Services,
80%
Capital Grants and
Contributions, 19%
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, unassigned fund balance
may serve as a useful measure of a government’s net resources available for spending at the
end of the fiscal year.
As of September 30, 2013, the City of Clermont’s governmental funds reported combined
ending fund balances of $19,323,399 a decrease of $1,199,729 in comparison with the prior
year. This decrease is primarily due to the use of accumulated funds for general fund
operations including costs of insurance increases, a departmental reorganization and a property
purchase. Of the governmental funds combined ending fund balances, $8,878,429 (45.9%)
represents unassigned fund balance, which is available for spending at the City’s discretion. An
additional $764,848 (assigned fund balance) has been set aside for encumbrances and Fiscal
Year 2014 expenditures. Restricted fund balances totaling over $8.55 million include funds
required for debt service, as well as funds collected for specific purposes such as impact fees
and community redevelopment. The remainder of fund balance is non spendable ($1,128,579)
to indicate that it is not available for spending because it has already been committed for
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,
2013, the fund balance in the General Fund was $10,089,442 a decrease of $1,112,864 in
comparison with the prior year. This decrease is due to current expenditures exceeding current
revenues and is $78,597 more than originally budgeted, however it is just over $1.5 million less
than the revised budget. Revenues exceeded budget by $1,064,720 mainly attributable 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 and miscellaneous
revenue and reimbursements such as p-card rebates, rental fees, and sales of assets.
Departmental expenditures also came in less than anticipated reducing the amount of reserves
used. Of the total fund balance in the General Fund, $8,878,429 (88%) is unassigned fund
balance. As a measure of the General Fund’s liquidity, it may be useful to compare both
unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents 50.3% of total General Fund expenditures, while total fund balance
represents 57.2% of that same amount.
The City has a Capital Projects Fund that is considered a major fund under criteria set forth by
GASB Statement No. 34. This fund is used to account for the acquisition of capital assets or
construction of major capital projects not being financed by proprietary funds. Funds have been
accumulated so projects can be completed on a pay-as-you-go basis. During fiscal year 2012-
13, the fund balance of the capital projects fund decreased by $667,880 due to construction of
planned capital projects.
The City has an Infrastructure Fund that is considered a major fund under criteria set forth by
GASB Statement No. 34. This fund was established to account for the proceeds of the Local
Government Infrastructure Surtax. The proceeds and interest accrued thereto, by law are only
to be used to finance, plan and construct infrastructure. The fund balance in this fund
decreased by $204,047 in FY 2013, which is $1,300,591 less than the revised budget. This
decrease was lower than anticipated due to both higher than budgeted revenues ($484,666) as
well as reduced expenditures and transfers ($815,925). Planned expenditures for a fiber optic
network are being rolled over to FY 2014 due to the delay in construction.
9
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, 2013,
the fund balance was $707,675, a decrease of $595,795 over the prior year. This decrease is
due to the completion of the underground utilities project in conjunction with the streetscape
improvements project as well as additional grants for downtown business owners.
The City has a Debt Service Fund that is considered a major fund under criteria set forth by
GASB Statement No. 34. This fund was established to account for the accumulation of
resources and payment of bond principal and interest from governmental resources. The fund
balance as of September 30, 2013, is $491,071, which decreased by $8,171 due to refunding
costs. The City issued Public Improvement Refunding Revenue Note, Series 2012 which
resulted in an economic gain of $194,354 and a reduction of $201,148 in future debt service
payments,
The remainder of the change $1,389,028 to the governmental fund balance was from the non-
major governmental funds. Recreation and Police Impact Fee fund balances combined
increased a total of $939,790 due to both an increase in revenues as well as a delay in the
planned use of funds for capital projects. The fund balances in the remaining nonmajor funds
increased a total of $449,238.
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.
The Water Fund accounts for the provision of potable water and reclaimed irrigation services to
City and non-City residents. All activities necessary to the provision of these services are
accounted for in this fund, including, but not limited to administration, plant and line
maintenance. As of September 30, 2013, the City of Clermont’s Water Fund reported total net
position of $31,822,029, an increase of $1,644,299 in comparison with the prior year. This
increase in net position is primarily due to an increase in capital contributions.
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, 2013, the
City of Clermont’s Sewer Fund reported total net position of $50,167,992, an increase of
$1,627,817 in comparison with the prior year. This increase is primarily due to capital
contributions.
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, 2013, the City of Clermont’s Sanitation
Fund reported total net position of $4,666,180, an increase of $325,886 in comparison with the
prior year, which is primarily due to surplus operating income primarily due to lower than
anticipated operating expenses.
10
General Fund Budgetary Highlights
During the year there was a $1,973,796 increase in appropriations between the original and
final amended budget. Following are the main components of the increase:
$788,654 to amend the Police and Fire Department budgets for pension costs funded by
the state excise tax on insurance policies.
$341,201 to restore the cut in City contributions to the Group Self Insurance Fund.
$291,029 to provide pay increases and lump sum payments.
$281,797 to amend the City Manager Department budget for actual cost associated with
the previous city manager voluntary retirement agreement.
$130,619 for the purchase of property on Lake Minneola.
$128,760 to amend the Fire Department budget to reflect actual costs.
$85,900 for the demolition of Jenkins Auditorium.
$82,506 for departmental reorganization plan.
$70,069 to amend the legal services budget to reflect actual costs.
General Fund revenue increases totaling $394,327 were due to the receipt of several public
safety grants, which were awarded after the beginning of the fiscal year.
Considering the above noted increases in General Fund budgeted appropriations, actual
expenditures were less than budgeted by $403,053. In addition, actual revenues exceeded the
budget by $1,064,720.
Capital Assets
The following is a summary of the City of Clermont’s capital assets, net of depreciation for
governmental and business-type activities for the current year with a comparison to the prior
year. Additional information on the City of Clermont’s capital assets can be found in Note 7 on
pages 49 - 50 of this report.
2012‐132011‐122012‐132011‐122012‐132011‐12
Land 23,502,470$ 23,327,351$ 1,861,820$ 1,861,820$ 25,364,290$ 25,189,171$
Buildings 11,305,671 8,056,278 - - 11,305,671 8,056,278
Infrastructure 5,351,729 4,415,572 65,574,169 62,527,239 70,925,898 66,942,811
Machinery and Equipment1,522,646 1,084,064 1,502,411 1,861,528 3,025,057 2,945,592
Intangibles 25,002 110,025 - - 25,002 110,025
Construction in Progress854,927 2,698,416 3,902,977 5,609,054 4,757,904 8,307,470
Total 42,562,445$ 39,691,706$ 72,841,377$ 71,859,641$ 115,403,822$ 111,551,347$
Capital Assets
Governmental ActivitiesBusiness‐type Activities Total
(net of depreciation)
11
The City of Clermont’s investment in capital assets for its governmental and business-type
activities as of September 30, 2013, amounts to $115,403,822 (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 $3,852,475. Major capital
asset events during the current fiscal year included the following:
Completion of the Community Center - $2,037,163 was added and prior years
Construction in Progress in the amount of $1,746,906 was moved to Buildings for a total
project cost of $3,784,069.
Completion of the AMR Water Meter Replacement Project - $449,579 was added and
prior years Construction in Progress in the amount of $2,464,633 was moved to
Infrastructure/Improvements for a total project cost of $2,914212.
Completion of Disston Avenue Stormwater Project - $3,625 was added and prior years
Construction in Progress in the amount of $630,024 was moved to
Infrastructure/Improvements for a total project cost of $633,649.
Purchase of an aerial fire truck for $599,295.Construction in progress includes
construction of the Lake Hiawatha Development, Police Headquarters, , Water and
Sewer Security Improvements, East-West Water System Interconnects, and Reclaimed
Water Storage Tank.
Completion of Hook Street Reclaim Expansion - $179 was added and prior years
Construction in Progress in the amount of $193,057 was moved to
Infrastructure/Improvements for a total project cost of $193,236.
Construction of the KaBoom! Playground and Nature Explorer Center at West Beach -
$164,617.
Purchase of land on Lake Minneola for $133,119.
Construction in progress includes construction of the Police Headquarters, Lake
Hiawatha Preserve, East-West Water System Interconnects, Water and Sewer Security
Improvements and West Water Treatment Facility, and Reclaimed Water Storage Tank.
Debt Administration
The following is a summary of the City’s long-term debt for governmental and business-type
activity for the current year with a comparison to the prior year. Additional information on long-
term debt can be found in Note 8 on pages 51 - 52 of this report.
2012‐132011‐122012‐132011‐122012‐132011‐12
Revenue bonds payable -$ 3,080,000$ 14,930,000$ 15,525,000$ 14,930,000$ 18,605,000$
Note payable 2,612,000 - - - 2,612,000 -
Total 2,612,000$ 3,080,000$ 14,930,000$ 15,525,000$ 17,542,000$ 18,605,000$
Outstanding Debt
Governmental ActivitiesBusiness‐type Activities Total
12
At the end of the current fiscal year, the City of Clermont had total debt outstanding of
$17,542,000, which includes revenue bonds payable and a note payable.
Economic Factors and Next Year’s Budgets and Rates
The annual unemployment rate for Lake County in 2013 was 6.9%, which is a decrease
of 2.0% from 2012. Clermont’s unemployment rate was below the County average for
the 4th year in a row at 5.8% for 2013. This is lower than both the state’s average of
7.1% and the national average of 7.4%.
The taxable value of commercial and residential property decreased 3.2% from fiscal
year 2011-12 to fiscal year 2012-13 due to declining home values and foreclosures.
Population increased 1.3% from 29,827 in 2012 to 30,201 in 2013.
As of September 30, 2013, the General Fund unassigned fund balance was $8,878,429. In
addition, the City appropriated $759,225 for spending in the 2013-14 fiscal year budget. The
property tax rate included for the General Fund for the 2013-14 fiscal year budget increased by
0.587 mills to 3.729, the City’s first increase since 2001. Property tax revenue is projected to be
$909,104 higher in fiscal year 2013-14 due to the increase in the millage rate. This increase will
help the City to complete repairs that have been put off due to the revenue reductions as well as
implementing new initiatives.
No utility rate adjustments were proposed for the 2013-14 fiscal year with the exception of the
sewer rate structure. The sewer rates increased 1.63% on October 1, 2013 pursuant to a
required adjustment in accordance with the Florida Public Service Commission Annual Deflator
Index previously adopted by the Clermont City Council.
Requests for Information
This financial report is designed to provide a general overview of the City of Clermont’s finances
for all those with an interest in the government’s finances. Questions concerning any of the
information should be addressed to the office of the Finance Director, City of Clermont, P.O.
Box 120219, Clermont, Florida 34712.
13
14
BASIC FINANCIAL STATEMENTS
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET POSITION
September 30, 2013
Primary Government
Governmental
Activities
Business-type
Activities Total
Assets:
Cash and cash equivalents 16,019,976$ 18,097,892$ 34,117,868$
Investments 3,953,993 7,389,121 11,343,114
Receivables, net 500,175 1,259,790 1,759,965
Inventories 23,072 335,580 358,652
Due from other governments 348,747 - 348,747
Internal balances (200,099) 200,099 -
Prepaid costs 167,947 120,986 288,933
Restricted assets:
Cash and cash equivalents - 1,480,877 1,480,877
Investments - 7,105,608 7,105,608
Interest receivable 15,672 30,147 45,819
Bond issuance costs - - -
Capital assets not being depreciated 24,357,397 5,764,797 30,122,194
Capital assets being depreciated, net of
accumulated depreciation 18,205,048 67,076,580 85,281,628
Total assets 63,391,928 108,861,477 172,253,405
Deferred Outflows of Resources:
Deferred charge on refunding - 580,436 580,436
Total deferred outflows of resources - 580,436 580,436
Liabilities:
Accounts payable and accrued expenses 701,362 1,806,905 2,508,267
Noncurrent liabilities:
Due within one year 632,605 639,147 1,271,752
Due in more than one year 4,894,652 15,406,091 20,300,743
Total liabilities 6,228,619 17,852,143 24,080,762
Net Position:
Net investment in capital assets 39,950,445 57,862,471 97,812,916
Restricted for:
Capital Improvements - 9,535,896 9,535,896
Community redevelopment 707,675 - 707,675
Public safety 3,335,576 - 3,335,576
Culture and recreation 1,671,643 - 1,671,643
Infrastructure 2,346,207 - 2,346,207
Debt service 491,071 - 491,071
Perpetual care:
Nonexpendable 937,560 - 937,560
Unrestricted 7,723,132 24,191,403 31,914,535
Total net position 57,163,309$ 91,589,770$ 148,753,079$
The accompanying Notes to Financial Statements are an integral part of this statement.
15
CITY OF CLERMONT, FLORIDA
STATEMENT OF ACTIVITIES
Functions/Programs:Expenses
Charges for
Services
Operating Grants
and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-type
Activities Total
Governmental Activities:
General government 3,258,417$ 2,117,222$ -$ -$ (1,141,195)$ -$ (1,141,195)$
Public safety 12,685,206 1,040,312 615,882 2,089 (11,026,923) - (11,026,923)
Physical environment 303,130 - - - (303,130) - (303,130)
Transportation/public works 1,724,824 - 279,843 - (1,444,981) - (1,444,981)
Economic environment 199,676 - - - (199,676) - (199,676)
Culture and recreation 1,927,632 1,261,823 - 110,000 (555,809) - (555,809)
Interest on long-term debt 87,287 - - - (87,287) - (87,287)
Total governmental activities 20,186,172 4,419,357 895,725 112,089 (14,759,001) - (14,759,001)
Business-type activities
Water 4,153,922 5,215,188 - 1,038,052 - 2,099,318 2,099,318
Sewer 6,105,933 5,356,632 - 2,379,363 - 1,630,062 1,630,062
Sanitation 2,464,867 2,775,223 - - - 310,356 310,356
Stormwater 896,835 862,340 - 12,258 - (22,237) (22,237)
Total business-type activities 13,621,557 14,209,383 - 3,429,673 - 4,017,499 4,017,499
Total primary government 33,807,729$ 18,628,740$ 895,725$ 3,541,762$ (14,759,001) 4,017,499 (10,741,502)
General revenues:
Property taxes 5,349,583 - 5,349,583
Business taxes 111,195 - 111,195
Franchise fees 2,122,797 - 2,122,797
Utility taxes 2,490,461 - 2,490,461
Intergovernmental - unrestricted 5,801,871 - 5,801,871
Unrestricted investment earnings 113,537 149,251 262,788
Miscellaneous 264,864 - 264,864
Gain on sale of capital assets - 17,815 17,815
Transfers 478,539 (478,539) -
Total general revenues and transfers 16,732,847 (311,473) 16,421,374
Change in net position 1,973,846 3,706,026 5,679,872
Net position - beginning, as restated 55,189,463 87,883,744 143,073,207
Net position - ending 57,163,309$ 91,589,770$ 148,753,079$
Year Ended September 30, 2013
Program Revenue
Changes in Net Position
Primary Government
Net (Expense) Revenue and
The accompanying Notes to Financial Statements are an integral part of this statement.
16
General Capital Projects
Infrastructure
Special Revenue
Community
Redevelopment
Special Revenue Debt Service
Other
Governmental
Funds
Total
Governmental
Funds
Assets:
Cash and cash equivalents 5,882,631$ 8,060$ 2,191,086$ 713,591$ 491,071$ 5,722,361$ 15,008,800$
Investments 3,953,993 - - - - - 3,953,993
Receivables, net 514,423 - - - - - 514,423
Inventories, at cost 23,072 - - - - - 23,072
Due from other governments 178,409 - 170,338 - - - 348,747
Prepaid costs 166,294 - - 629 - 1,024 167,947
Total assets 10,718,822$ 8,060$ 2,361,424$ 714,220$ 491,071$ 5,723,385$ 20,016,982$
Liabilities:
Accounts payable 287,854$ 8,060$ 15,217$ 6,545$ -$ 34,381$ 352,057$
Accrued liabilities 277,764 - - - - - 277,764
Total liabilities 565,618 8,060 15,217 6,545 - 34,381 629,821
Deferred Inflows of Resources:
Unavailable revenue - liens and forfeitures 63,762$ -$ -$ -$ -$ -$ 63,762$
Total deferred inflows of resources 63,762 - - - - - 63,762
Fund Balances:
Nonspendable 189,366 - - 629 - 938,584 1,128,579
Restricted 256,799 - 2,346,207 707,046 491,071 4,750,420 8,551,543
Assigned 764,848 - - - - - 764,848
Unassigned 8,878,429 - - - - - 8,878,429
Total fund balances 10,089,442 - 2,346,207 707,675 491,071 5,689,004 19,323,399
Total liabilities, deferred inflows
of resources, and fund balances 10,718,822$ 8,060$ 2,361,424$ 714,220$ 491,071$ 5,723,385$
42,562,445
(9,490)
63,762
750,450
(5,527,257)
57,163,309$
Accrued interest payable is not due in the current period and therefore is not reported in the funds.
The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are
included in the governmental activities of the Statement of Net Position.
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.
Net Position of Governmental Activities in the Statement of Net Position
CITY OF CLERMONT, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2013
Amounts reported for governmental activities in the Statement of Net Position are different because:
Other long-term assets are not available to pay for current period expenditures and, therefore are deferred in the
funds.
Capital assets used in governmental activities are not financial resources and are not reported in the funds.
The accompanying Notes to Financial Statements are an integral part of this statement.
17
General Capital Projects
Infrastructure
Special Revenue
Community
Redevelopment
Special Revenue Debt Service
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:
Taxes 7,769,274$ -$ -$ 181,965$ -$ -$ 7,951,239$
Franchise fees 2,122,797 - - - - - 2,122,797
Licenses and permits 113,582 - - - - 770,546 884,128
Intergovernmental revenues 4,369,222 - 2,359,456 - - - 6,728,678
Charges for services 943,032 - - - - 141,676 1,084,708
Fines and forfeitures 172,414 - - - - - 172,414
Impact fees/special assessments - - - - - 1,908,770 1,908,770
Investment earnings 48,366 3,546 15,710 8,602 1,939 30,160 108,323
Miscellaneous 574,006 - - - - 48,174 622,180
Total revenues 16,112,693 3,546 2,375,166 190,567 1,939 2,899,326 21,583,237
Expenditures:
Current:
General government 3,017,424 59,888 70,927 - - - 3,148,239
Public safety 11,022,892 - 809,510 - - 747,013 12,579,415
Physical environment 306,808 - - - - - 306,808
Transportation 1,174,495 - 88,294 - - - 1,262,789
Economic environment 134,865 - - 587,362 - - 722,227
Culture and recreation 1,984,394 - 29,951 - - - 2,014,345
Debt Service:
Principal retirement - - - - 3,080,000 - 3,080,000
Interest and fiscal charges - - - - 122,164 - 122,164
Capital Outlay:
General government - 2,037,163 - - - - 2,037,163
Public safety - 353,772 - - - - 353,772
Culture and recreation - 246,583 - - - - 246,583
Total expenditures 17,640,878 2,697,406 998,682 587,362 3,202,164 747,013 25,873,505
Excess (Deficiency) of Revenues
Over Expenditures (1,528,185) (2,693,860) 1,376,484 (396,795) (3,200,225) 2,152,313 (4,290,268)
Other Financing Sources (Uses):
Refunding bonds issued - - - - 2,612,000 - 2,612,000
Transfers in 484,927 2,025,980 - - 580,054 - 3,090,961
Transfers out (69,606) - (1,580,531) (199,000) - (763,285) (2,612,422)
Total other financing sources (uses)415,321 2,025,980 (1,580,531) (199,000) 3,192,054 (763,285) 3,090,539
Net Change in Fund Balances (1,112,864) (667,880) (204,047) (595,795) (8,171) 1,389,028 (1,199,729)
Fund Balances - Beginning 11,202,306 667,880 2,550,254 1,303,470 499,242 4,299,976 20,523,128
Fund Balances - Ending 10,089,442$ -$ 2,346,207$ 707,675$ 491,071$ 5,689,004$ 19,323,399$
Year Ended September 30, 2013
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.
18
Net change in fund balances - total governmental funds:(1,199,729)$
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.2,760,739
Governmental funds do not report capital asset contributions. In contrast, the
Statement of Activities reports capital asset contributions as revenue.110,000
Revenue reported in the funds must be eliminated from the statement of activities
since revenue was recognized in a prior year (16,972)
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. 468,000
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.(576,092)
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.427,900
Change in net position of governmental activities 1,973,846$
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
Year Ended September 30, 2013
CITY OF CLERMONT, FLORIDA
STATEMENT OF ACTIVITIES
The accompanying Notes to Financial Statements are an integral part of this statement.
19
Budgeted Amounts
Actual
Amounts,
Budgetary
Basis
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Taxes 7,501,906$ 7,501,906$ 7,769,274$ 267,368$
Franchise fees 2,091,400 2,091,400 2,122,797 31,397
Licenses and permits 61,100 61,100 113,582 52,482
Intergovernmental revenues 3,422,807 3,817,134 4,369,222 552,088
Charges for services 987,903 987,903 943,032 (44,871)
Fines and forfeitures 127,000 127,000 172,414 45,414
Investment earnings 111,800 111,800 48,366 (63,434)
Miscellaneous 349,730 349,730 574,006 224,276
Total revenues 14,653,646 15,047,973 16,112,693 1,064,720
Expenditures:
Current:
General government:
City council 27,238 27,238 24,877 2,361
City clerk 198,834 218,172 212,662 5,510
City manager 361,813 650,639 648,787 1,852
Finance 1,085,750 880,533 879,225 1,308
Legal services 113,000 183,069 180,349 2,720
Planning & zoning 440,763 468,474 465,600 2,874
Information technology - 217,934 216,234 1,700
Human resources - 140,582 140,506 76
Other general government 256,842 256,842 249,184 7,658
2,484,240 3,043,483 3,017,424 26,059
Public Safety:
Law enforcement 5,690,386 6,153,424 5,931,450 221,974
Fire control 4,670,391 5,174,581 5,091,442 83,139
10,360,777 11,328,005 11,022,892 305,113
Physical environment 270,763 295,669 306,808 (11,139)
Transportation 1,190,816 1,212,690 1,174,495 38,195
Economic environment 56,480 159,944 134,865 25,079
Culture and recreation 1,707,059 2,004,140 1,984,394 19,746
Total expenditures 16,070,135 18,043,931 17,640,878 403,053
GENERAL FUND
Year Ended September 30, 2013
CITY OF CLERMONT, FLORIDA
BUDGET AND ACTUAL
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
The accompanying Notes to Financial Statements are an integral part of this statement.
20
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL (CONTINUED)
Budgeted Amounts
Actual
Amounts,
Budgetary
Basis
Variance with
Final Budget -
Positive
(Negative)
Original Final
Over Expenditures (1,416,489) (2,995,958) (1,528,185) 1,467,773
Other Financing Sources (Uses):
Transfers in 458,170 458,170 484,927 26,757
Transfers out (75,948) (75,948) (69,606) 6,342
Total other financing sources (uses)382,222 382,222 415,321 33,099
Net Change in Fund Balance (1,034,267) (2,613,736) (1,112,864) 1,500,872
Fund Balance - Beginning 11,202,306 11,202,306 11,202,306 -
Fund Balance - Ending 10,168,039$ 8,588,570$ 10,089,442$ 1,500,872$
Excess (Deficiency) of Revenues
CITY OF CLERMONT, FLORIDA
GENERAL FUND
Year Ended September 30, 2013
The accompanying Notes to Financial Statements are an integral part of this statement.
21
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Intergovernmental revenues 1,879,000$ 1,879,000$ 2,359,456$ 480,456$
Investment earnings 11,500 11,500 15,710 4,210
Total revenues 1,890,500 1,890,500 2,375,166 484,666
Expenditures:
General government - 578,351 70,927 507,424
Public safety:
Police 135,000 137,078 137,077 1
Fire control 598,000 672,433 672,433 -
733,000 809,511 809,510 1
Transportation:
Roads & streets 315,000 315,000 88,294 226,706
Culture and recreation:
Recreation programs 54,000 72,706 29,951 42,755
Total expenditures 1,102,000 1,775,568 998,682 776,886
Excess (Deficiency) of Revenues
Over Expenditures 788,500 114,932 1,376,484 1,261,552
Other Financing Uses:
Transfers out (1,300,628) (1,619,570) (1,580,531) 39,039
Total other financing uses (1,300,628) (1,619,570) (1,580,531) 39,039
Net Change in Fund Balances (512,128) (1,504,638) (204,047) 1,300,591
Fund Balances - Beginning 2,550,254 2,550,254 2,550,254 -
Fund Balances - Ending 2,038,126$ 1,045,616$ 2,346,207$ 1,300,591$
CITY OF CLERMONT, FLORIDA
INFRASTRUCTURE SPECIAL REVENUE FUND
Year Ended September 30, 2013
The accompanying Notes to Financial Statements are an integral part of this statement.
22
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Taxes 189,933$ 189,933$ 181,965$ (7,968)$
Investment earnings 9,800 9,800 8,602 (1,198)
Total revenues 199,733 199,733 190,567 (9,166)
Expenditures:
Economic environment:
Economic development 828,783 830,029 587,362 242,667
Total expenditures 828,783 830,029 587,362 242,667
Excess (Deficiency) of Revenues
Over Expenditures (629,050) (630,296) (396,795) 233,501
Other Financing Uses:
Transfers out (199,000) (199,000) (199,000) -
Total other financing uses (199,000) (199,000) (199,000) -
Net Change in Fund Balances (828,050) (829,296) (595,795) 233,501
Fund Balances - Beginning 1,303,470 1,303,470 1,303,470 -
Fund Balances - Ending 475,420$ 474,174$ 707,675$ 233,501$
CITY OF CLERMONT, FLORIDA
COMMUNITY REDEVELOPMENT SPECIAL REVENUE FUND
Year Ended September 30, 2013
The accompanying Notes to Financial Statements are an integral part of this statement.
23
Governmental
Activities-
Water Sewer Sanitation Stormwater Total
Internal Service
Fund
Assets:
Current assets:
Cash and cash equivalents 5,464,498$ 7,332,722$ 3,727,456$ 1,573,216$ 18,097,892$ 1,011,176$
Investments 7,389,121 - - - 7,389,121 -
Restricted cash and cash equivalents 781,663 699,214 - - 1,480,877 -
Accounts receivable, net 432,848 494,845 252,453 79,644 1,259,790 1,424
Inventories 305,401 29,421 - 758 335,580 -
Prepaid expenses 47,691 51,088 12,510 9,697 120,986 -
Total current assets 14,421,222 8,607,290 3,992,419 1,663,315 28,684,246 1,012,600
Noncurrent assets:
Restricted investments - 7,105,608 - - 7,105,608 -
Interest receivable 12,641 17,506 - - 30,147 -
Capital assets:
Land, buildings and equipment 30,639,891 59,872,419 2,964,471 4,822,795 98,299,576 -
Construction in progress 1,655,127 2,217,231 - 30,619 3,902,977 -
Less accumulated depreciation (8,591,198) (17,170,261) (1,905,743) (1,693,974) (29,361,176) -
Total capital assets (net of
accumulated depreciation)23,703,820 44,919,389 1,058,728 3,159,440 72,841,377 -
Total non-current assets 23,716,461 52,042,503 1,058,728 3,159,440 79,977,132 -
Total assets 38,137,683 60,649,793 5,051,147 4,822,755 108,661,378 1,012,600
Deferred Outflows of Resources:
Deferred charge on refunding 203,879 376,557 - - 580,436 -
Total deferred outflows of resources 203,879 376,557 - - 580,436 -
CITY OF CLERMONT, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2013
Business-type Activities-Enterprise Funds
The accompanying Notes to Financial Statements are an integral part of this statement
24
Liabilities:
Current liabilities:
Accounts payable 192,521 796,725 142,699 9,622 1,141,567 62,051
Salaries payable 33,030 31,361 16,147 6,105 86,643 -
Accrued interest payable 68,522 121,818 - - 190,340 -
Compensated absences 11,628 7,971 3,568 980 24,147 -
Customer deposits payable 388,355 - - - 388,355 -
Revenue bonds payable-current 221,400 393,600 - - 615,000 -
Total current liabilities 915,456 1,351,475 162,414 16,707 2,446,052 62,051
Noncurrent liabilities:
Compensated absences 104,655 71,739 32,114 8,815 217,323 -
Other post employment benefits 328,416 242,244 190,439 63,763 824,862 -
Revenue bonds payable 5,171,006 9,192,900 - - 14,363,906 -
Total non-current liabilities 5,604,077 9,506,883 222,553 72,578 15,406,091 -
Total liabilities 6,519,533 10,858,358 384,967 89,285 17,852,143 62,051
Net Position:
Net investment in capital assets 18,311,414 35,332,889 1,058,728 3,159,440 57,862,471 -
Restricted for capital improvements 1,096,752 8,439,144 - - 9,535,896 -
Unrestricted 12,413,863 6,395,959 3,607,452 1,574,030 23,991,304 950,549
Total net position 31,822,029$ 50,167,992$ 4,666,180$ 4,733,470$ 91,389,671 950,549$
200,099
Total net position per Government-Wide financial statements 91,589,770$
The assets and liabilities of certain internal service funds are not included in the fund financial statement,
but are included in the Business Activities of the Statement of Net Position.
The accompanying Notes to Financial Statements are an integral part of this statement
25
26
CITY OF CLERMONT, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
Governmental
Activities-
Water Sewer Sanitation Stormwater Total
Internal Service
Fund
Operating Revenues:
Charges for services 4,940,623$ 5,343,152$ 2,773,181$ 861,229$ 13,918,185$ 3,028,033$
Miscellaneous 274,565 13,480 2,042 1,111 291,198 58,334
Total operating revenues 5,215,188 5,356,632 2,775,223 862,340 14,209,383 3,086,367
Operating Expenses:
Personnel services 1,643,493 1,486,333 855,335 343,751 4,328,912 -
Utilities 405,007 664,227 1,963 795 1,071,992 -
Dump fees - 132,000 508,215 25,374 665,589 -
Administrative services 284,421 324,099 166,060 57,742 832,322 -
Repairs and maintenance 270,641 167,296 107,333 101,885 647,155 -
Depreciation and amortization 791,412 2,291,305 467,140 320,364 3,870,221 -
Professional services 138,922 288,488 34,310 13,682 475,402 3,500
Insurance claims and expenses 124,165 163,475 74,529 19,263 381,432 2,507,804
Other supplies and expenses 336,753 248,454 262,000 47,042 894,249 -
Total operating expenses 3,994,814 5,765,677 2,476,885 929,898 13,167,274 2,511,304
Operating income (loss)1,220,374 (409,045) 298,338 (67,558) 1,042,109 575,063
Nonoperating Revenues (Expenses):
Investment income 70,033 46,055 22,961 10,202 149,251 5,214
Interest expense (218,104) (388,556) - - (606,660) -
Gain (loss) on disposal of capital assets 12,483 - 4,587 745 17,815 -
Total nonoperating revenue (expenses)(135,588) (342,501) 27,548 10,947 (439,594) 5,214
Income (loss) before contributions and transfers 1,084,786 (751,546) 325,886 (56,611) 602,515 580,277
Capital contributions 1,038,052 2,379,363 - 12,258 3,429,673 -
Transfers out (478,539) - - - (478,539) -
Change in net position 1,644,299 1,627,817 325,886 (44,353) 3,553,649 580,277
Total Net Position - Beginning, as Restated 30,177,730 48,540,175 4,340,294 4,777,823 370,272
Total Net Position - Ending 31,822,029$ 50,167,992$ 4,666,180$ 4,733,470$ 950,549$
Change in net position, per above 3,553,649
152,377
Change in Business-Type Activities in Net Position per Government-Wide Financial Statements 3,706,026$
Internal service funds are used by management to charge the costs of certain activities to individual funds. The
net revenue (expense) of certain internal service funds is reported with Business Activities.
Business-type Activities-Enterprise Funds
Year Ended September 30, 2013
The accompanying Notes to Financial Statements are an integral part of this statement.
27
Governmental
Activities-
Internal Service
Water Sewer Sanitation Stormwater Total Fund
Cash Flows from Operating Activities:
Receipts from customers 5,211,812$ 5,318,505$ 2,772,611$ 863,249$ 14,166,177$ -$
Receipts from internal services provided - - - - - 3,084,943
Payments to suppliers (1,292,598) (1,490,846) (1,100,681) (265,937) (4,150,062) (2,495,547)
Payments to employees (1,556,289) (1,403,523) (799,333) (332,293) (4,091,438) -
Net cash provided (used) by operating
activities 2,362,925 2,424,136 872,597 265,019 5,924,677 589,396
Cash Flows from Non-Capital
Financing Activities:
Transfers out (478,539) - - - (478,539) -
Net cash provided (used) by non-capital
financing activities (478,539) - - - (478,539) -
Cash Flows from Capital and Related
Financing Activities:
Acquisition of capital assets (1,034,704) (2,584,820) - (158,456) (3,777,980) -
Sale of capital assets 12,483 - 4,587 745 17,815 -
Grant revenues - - - 12,258 12,258 -
Interest paid on long-term debt (209,448) (372,350) - - (581,798) -
Principal paid on debt (214,200) (380,800) (595,000) -
Fees and assessments received 1,038,052 2,379,363 - - 3,417,415 -
Net cash provided (used) by capital and
related financing activities (407,817) (958,607) 4,587 (145,453) (1,507,290) -
Business-Type Activities-Enterprise Funds
CITY OF CLERMONT, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended September 30, 2013
The accompanying Notes to Financial Statements are an integral part of these statements.
28
Cash Flows from Investing Activities:
Sale (Purchase) of investments 557,727 272,680 - - 830,407 -
Investment income 96,746 39,745 22,961 10,202 169,654 5,214
Net cash provided by investing activities 654,473 312,425 22,961 10,202 1,000,061 5,214
Net Increase (Decrease) in Cash and
Cash Equivalents 2,131,042 1,777,954 900,145 129,768 4,938,909 594,610
Cash and Cash Equivalents - Beginning 4,115,119 6,253,982 2,827,311 1,443,448 14,639,860 416,566
Cash and Cash Equivalents - End 6,246,161$ 8,031,936$ 3,727,456$ 1,573,216$ 19,578,769$ 1,011,176$
Classified As:
Cash and cash equivalents 5,464,498$ 7,332,722$ 3,727,456$ 1,573,216$ 18,097,892$ 1,011,176$
Restricted cash and cash equivalents 781,663 699,214 - - 1,480,877 -
Total 6,246,161$ 8,031,936$ 3,727,456$ 1,573,216$ 19,578,769$ 1,011,176$
Reconciliation of Operating Income
(Loss) to Net Cash Provided
By Operating Activities
Operating income (loss)1,220,374$ (409,045)$ 298,338$ (67,558)$ 1,042,109$ 575,063$
Adjustments Not Affecting Cash:
Depreciation and amortization 791,412 2,291,305 467,140 320,364 3,870,221 -
Change in Assets and Liabilities:
Decrease (Increase) in accts receivable (31,554) (38,127) (3,181) 909 (71,953) (1,424)
Decrease in due from other governments - - 569 - 569 -
Decrease (Increase) in customer deposits 28,178 - - - 28,178 -
Decrease (Increase) in prepaid costs (2,010) (5,193) 7,743 (2,648) (2,108) -
Decrease (Increase) in inventory 526,140 (13) - 387 526,514 -
Increase (Decrease) in accounts payable (256,819) 502,399 45,986 2,107 293,673 15,757
Increase (Decrease) in accrued liabilities 87,204 82,810 56,002 11,458 237,474 -
Total adjustments 1,142,551 2,833,181 574,259 332,577 4,882,568 14,333
Net Cash Provided (Used) by Operating
Activities 2,362,925$ 2,424,136$ 872,597$ 265,019$ 5,924,677$ 589,396$
Noncash investing, capital,
and financing activities:
Increase (Decrease) in fair value of investments (25,008)$ 1,513$ -$ -$ (23,495)$ -$
The accompanying Notes to Financial Statements are an integral part of these statements.
29
CITY OF CLERMONT, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
September 30, 2013
Total Employee
Pension Funds
Assets:
Cash and cash equivalents $ 267,387
Receivables:
Employer contribution receivable 20,464
Total receivables 20,464
Investments:
U.S. Government & other debt securities 7,980,474
Equities 17,764,129
Total investments 25,744,603
Total assets 26,032,454
Liabilities:
Refunds payable and other 219,702
Total liabilities 219,702
Net Position Held in Trust
for Pension Benefits 25,812,752$
The accompanying Notes to Financial Statements are an integral part of this statement.
30
CITY OF CLERMONT, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
Year Ended September 30, 2013
Total Employee
Pension Funds
Additions:
Contributions:
Employer 1,524,957$
Plan members 120,127
State 396,400
Total contributions 2,041,484
Investment earnings:
Net increase in fair value of investments 2,786,765
Total net investment earnings 2,786,765
Total additions 4,828,249
Deductions:
Benefits/distributions 1,346,322
Administrative 89,722
Total deductions 1,436,044
Change in Net Position 3,392,205
Net Position - Beginning 22,420,547
Net Position - Ending 25,812,752$
The accompanying Notes to Financial Statements are an integral part of this statement
31
32
NOTES TO FINANCIAL STATEMENTS
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
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.
33
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
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 position and the
statement of changes in net position) report information on all of the nonfiduciary activities of
the City. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon enough thereafter
to pay liabilities of the current period. For this purpose, the government considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
34
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
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.
Capital Projects Fund accounts for financial resources segregated for the acquisition
or construction of major capital facilities.
Infrastructure Special Revenue Fund accounts for the proceeds of the Local
Government Infrastructure Surtax. The proceeds and interest accrued thereto, by
law are only to be used to finance, plan and construct infrastructure.
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.
Debt Service Fund is used to account for the accumulation of resources for the
payment of principal and interest on certain long-term debt.
Nonmajor Governmental Fund Types
Special Revenue Funds account for the proceeds of specific revenue sources that
are legally restricted or committed to expenditures for specified purposes other than
debt service or capital projects.
Cemetery Perpetual Care accounts for activities of the City relative to cemetery
maintenance at specified locations. Fund resources are restricted. Only earnings on
invested resources may be used to support these activities.
35
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued):
Major Proprietary Funds
Water Fund is used to account for the operations of the City’s water system, which is
financed in a manner similar to private business enterprises, where the costs,
including depreciation, of providing services to the general public on an ongoing
basis are financed primarily through user charges.
Sewer Fund is used to account for the operations of the City’s sewer system, which
is financed in a manner similar to private business enterprises, where the costs,
including depreciation, of providing services to the general public on an ongoing
basis are financed primarily through user charges.
Sanitation Fund is used to account for the fiscal activities of the City’s refuse
collection and disposal operation.
Nonmajor Proprietary Funds
Stormwater Fund (Enterprise Fund) is used to account for the fiscal activities of the
City’s stormwater drainage operation, as well as the funding and payment of related
debt.
Internal Service Fund is used to account for the costs of group insurance which are
charged to other departments on a cost reimbursement basis.
Fiduciary Funds
Pension Trust Funds account for activities of police officers, firefighters and general
employees retirement plans which accumulate resources for pension benefit
payments to qualified employees.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of
the Governmental Accounting Standards Board. Governments also have the option of
following subsequent private-sector guidance for their business-type activities and
enterprise funds, subject to this same limitation. The government has elected not to follow
subsequent private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are other charges between the
City’s water and sewer function and various other functions of the government. Elimination
of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
36
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
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, Deferred Outflows/Inflows and Net Position/Fund Balance:
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 noncurrent portion of interfund loans). All other outstanding
balances between funds are reported as “due to/from other funds.”
37
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(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 non-spendable fund balance in applicable governmental funds to indicate
that they are not available for appropriation and are not expendable available
financial resources.
All receivables are shown net of an allowance for uncollectibles. The County bills
and collects property taxes and remits them to the City. City property tax
revenues are recognized when levied to the extent that they result in current
receivables.
All property is reassessed according to its fair value on the lien date, or January
1 of each year. Taxes are levied on October 1 of each year. Discounts are
allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January, and 1% in the month of
February. The taxes paid in March are without discount. All unpaid taxes
become delinquent on April 1 following the year in which they are assessed. On
or around May 31 following the tax year, certificates are sold for all delinquent
taxes on real property.
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.
38
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(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 & machinery 3-15
Intangible assets 3-15
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, net pension obligations, and net
other postemployment benefit obligations are generally liquidated by the general
fund.
39
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(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 position. Bond premiums and
discounts are deferred and amortized over the life of the bonds using the
effective interest method. Bonds payable are reported net of the applicable bond
premium or discount.
In the fund financial statements, governmental fund types recognize bond
premiums and discounts during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt
issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses.
8. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a
separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of
net position that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/expenditure) until then. The City only has one item
that qualifies for reporting in this category. It is the deferred charge on refunding
reported in the government-wide statement of net position and the statement of
net position – proprietary funds. A deferred charge on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This
amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial
statement element, deferred inflows of resources, represents an acquisition of
net position that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The City has only one type of item,
which arises only under a modified accrual basis of accounting, that qualifies for
reporting in this category. Accordingly, the item, unavailable revenue, is reported
only in the governmental funds balance sheet. The governmental funds report
unavailable revenues from one source: liens and forfeitures. These amounts are
deferred and recognized as an inflow of sources in the period that the amounts
become available.
40
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(Continued):
9. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted
(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to
calculate the amounts to report as restricted - net position and unrestricted - net
position in the government-wide and proprietary fund financial statements, a flow
assumption must be made about the order in which the resources are considered
to be applied. It is the City’s policy to consider restricted - net position to have
been depleted before unrestricted - net position is applied.
10. Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted
and unrestricted resources (the total of committed, assigned, and unassigned
fund balance). In order to calculate the amounts to report as restricted,
committed, assigned, and unassigned fund balance in the governmental fund
financial statements a flow assumption must be made about the order in which
the resources are considered to be applied. It is the government’s policy to
consider restricted fund balance to have been depleted before using any of the
components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund
balance is depleted first, followed by assigned fund balance. Unassigned fund
balance is applied last.
11. Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on
the nature of any limitations requiring the use of resources for specific purposes.
The City itself can establish limitations on the use of resources through either a
commitment (committed fund balance) or an assignment (assigned fund
balance).
The committed fund balance classification includes amounts that can be used
only for the specific purposes determined by a formal action of the City’s highest
level of decision-making authority. The Council is the highest level of decision-
making authority for the City that can, by adoption of a resolution prior to the end
of the fiscal year, commit fund balance. Once adopted, the limitation imposed by
the resolution remains in place until a similar action is taken (the adoption of
another resolution) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by
the City for specific purposes but do not meet criteria to be classified as
committed. The council has maintained authority to assign fund balance.
41
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, Deferred Outflows/Inflows and Net Position/Fund Balance
(Continued):
11. Fund Balance Policies - (Continued)
The council may also assign fund balance as it does when appropriating fund
balance to cover a gap between estimated revenue and appropriations in the
subsequent year’s appropriated budget. Unlike commitments, assignments
generally only exist temporarily. In other words, an additional action does not
normally have to be taken for the removal of an assignment. Conversely, as
discussed above, an additional action is essential to either remove or revise a
commitment.
E. New GASB Statements Implemented:
GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance
Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This
Statement classifies all sources of generally accepted accounting principles for state and
local governments so that the authoritative accounting and financial reporting literature
will be together in a single source, with that guidance modified as necessary to
appropriately recognize the governmental environment and the needs of governmental
financial statement users. The City elected to include all pre-November 30, 1989 FASB
pronouncements which are now codified in GASB 62.
GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources,
Deferred Inflows of Resources, and Net Position. This statement provides guidance for
deferred outflows of resources and deferred inflows of resources. It further identifies net
position as the residual of all elements presented in a statement of financial position.
This Statement redefines certain assets and liabilities as “deferred outflows of
resources” or “deferred inflows of resources”. It further requires the “capital assets, net
of related debt” now be titled “net investment in capital assets” and that the last line of
the statements, previously called “net assets” now be titled “net position.”
GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. This
statement provides additional guidance for the items listed in GASB 63 and includes
additional changes in accounting and financial reporting standards that reclassify, as
deferred outflows of resources of deferred inflows of resources, certain items that were
previously reported as assets and liabilities. This Statement requires that debt issuance
costs be expensed in the period the debt was issued. This Statement also requires that
taxes and lease revenues received prior to the period to which they relate to be
classified as Unavailable Revenue) a deferred inflow). A prior period adjustment was
made in the proprietary funds for bond issuance costs.
42
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 2 - Accounting Changes and Correction of an Error:
Beginning net positions of the Water Fund and Sewer Fund have been adjusted for the
effects of implementation of GASB Statement No. 65 (GASB No. 65), Items Previously
Reported as Assets and Liabilities. GASB Statement No. 65 now requires bond issuance
costs be expensed when incurred and not capitalized. As a result, net positions of the
Water Fund and Sewer Fund were decreased by $123,993 and $220,432, respectively. In
addition, the net position of the Sewer Fund has been adjusted to reflect a prior year
infrastructure contribution and corresponding accumulated depreciation for $1,612,638
and $(538,661), respectively, for a net change of $1,073,977. Net position of business-
type activities at the beginning of the year was increased by $729,552, as follows:
Business-Type Activities
Net Position, October 1, 2012, Previously Stated 87,154,192$
Decrease for Accounting Change - GASB 65 (344,425)
Increase for Correction of Error 1,073,977
Net Position, October 1, 2012, Restated 87,883,744$
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 position of governmental activities as reported in
the government-wide statement of activities. One element of that reconciliation explains
that “Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful lives
and reported as depreciation expense.” The details of this $2,760,739 difference are as
follows:
Capital outlay 4,439,129$
Depreciation expense (1,678,390)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position of
governmental activities 2,760,739$
43
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 3 - Reconciliation of Government-Wide and Fund Financial Statements (Continued):
A. Explanation of Certain Differences Between the Governmental Fund Statement of
Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide
Statement of Activities (Continued)
Another element of that reconciliation states that “The issuance of long-term debt (e.g.,
bonds, leases) provides current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position.” The
details of this $468,000 difference are as follows:
Debt issued or incurred (2,612,000)$
Principal repayment 3,080,000
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position of
governmental activities 468,000$
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 54,245$
Other post employment benefits (665,214)
Accrued interest payable 34,877
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net position of
governmental activities (576,092)$
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.
44
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 4 - Stewardship, Compliance, and Accountability (Continued):
A. Budgetary Information (Continued) -
(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 employed in governmental funds.
Encumbrances (e.g., purchase orders and contracts) outstanding at year end are
reported as assigned fund balances and do not constitute expenditures or
liabilities because the commitments will be re-appropriated and honored during
the subsequent year.
(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.
B. 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.
45
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 4 - Stewardship, Compliance, and Accountability (Continued):
C. Appropriations in Excess of Funds Available -
Appropriations for the Recreation Impact Fee Special Revenue Fund were in excess of
anticipated revenue and available fund balance.
Note 5 - Cash and Investments:
Deposits
At year-end, the carrying amount of the City's deposits was $35,598,745 and the bank
balance was $35,991,343. 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.
46
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 5 - Cash and Investments (Continued):
Investments (Continued)
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.
Investments made by the City of Clermont at September 30, 2013 are summarized below.
Defined benefit pension plan investments, other than $15,219,733 in mutual funds,
investing in equity securities, are included below. In accordance with GASB 31,
investments are reported at fair value.
Investment Type Fair ValueCredit Rating
Weighted
Average
Maturity
Federal Agency Bond 7,805,440$ AA+1.48 years
US Treasury Notes 6,799,184 AA+1.95 years
Corporate Note 2,457,794 AA+/AA-/AA2.08 years
Commercial Paper 514,306 A-1 .50 years
Municipal Bond 871,998 AA+/AA1.62 years
Pension fixed income securities 7,980,474 AA/V4 5.54 years
26,429,196$
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,
2013, 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, 2013, 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.
47
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 5 - Cash and Investments (Continued):
Investments (Continued)
Concentration of Credit Risk:
The City’s investment policy requires diversification, but does not specify limits on types of
investments.
Interest Rate Risk:
The City’s investment policy does not specifically address interest rate risk, however the
general investment policy is to apply the prudent-person rule: Investments are made as a
prudent person would be expected to act, with discretion and intelligence, to seek
reasonable income, preserve capital, and in general, avoid speculative investments. The
City manages its exposure to declines in fair values by investing primarily in pooled
investments that have a weighted average maturity of less than three months.
Note 6 - Receivables:
Receivables as of year end for the City’s individual major funds and nonmajor funds,
including the applicable allowances for uncollectible accounts, are as follows:
InternalNonmajor
General Water Sewer Sanitation ServiceEnterprise
FundFundFundFundFundFund
Receivables:
Accounts556,821$ 406,336$ 576,008$ 290,538$ -$ 92,120$
Taxes74,486 - - - - -
Other 409,162 59,216 - - 2,923 -
Less allowance
for uncollectible
accounts (526,046) (32,704) (81,163) (38,085) (1,499) (12,476)
514,423$ 432,848$ 494,845$ 252,453$ 1,424$ 79,644$
48
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 7 - Capital Assets:
Capital asset activity for the year ended September 30, 2013 was as follows:
Beginning
Balance IncreasesDecreases
Ending
Balance
Governmental Activities:
Capital assets, not being depreciated:
Land 23,327,351$ 175,119$ -$ 23,502,470$
Construction in progress 2,698,416 3,273,672 (5,117,161) 854,927
Total capital assets, not being
depreciated 26,025,767 3,448,791 (5,117,161) 24,357,397
Capital assets, being depreciated:
Buildings 14,040,686 3,809,708 (243,023) 17,607,371
Improvements/infrastructure 12,979,131 1,457,680 - 14,436,811
Machinery and equipment 7,069,128 936,755 (54,460) 7,951,423
Intangibles 661,352 13,356 - 674,708
Total capital assets being
depreciated 34,750,297 6,217,499 (297,483) 40,670,313
Less accumulated depreciation for:
Buildings (5,984,408) (560,315) 243,023 (6,301,700)
Improvements/infrastructure (8,563,559) (521,523) - (9,085,082)
Machinery and equipment (5,985,064) (498,173) 54,460 (6,428,777)
Intangibles (551,327) (98,379) - (649,706)
Total accumulated depreciation (21,084,358) (1,678,390) 297,483 (22,465,265)
Total capital assets being
depreciated, net 13,665,939 4,539,109 - 18,205,048
Governmental activities capital
assets, net 39,691,706$ 7,987,900$ (5,117,161)$ 42,562,445$
49
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 7 - Capital Assets (Continued):
Restated
Beginning
Balance IncreasesDecreases
Ending
Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,861,820$ -$ -$ 1,861,820$
Construction in progress 5,609,054 2,718,232 (4,424,309) 3,902,977
Total capital assets, not being
depreciated 7,470,874 2,718,232 (4,424,309) 5,764,797
Capital assets, being depreciated:
Buildings 37,178 - - 37,178
Improvements/infrastructure 86,019,218 5,228,517 - 91,247,735
Machinery and equipment 4,837,487 255,540 (46,116) 5,046,911
Intangibles 105,932 - - 105,932
Total capital assets being
depreciated 90,999,815 5,484,057 (46,116) 96,437,756
Less accumulated depreciation for:
Buildings (37,178) - - (37,178)
Improvements/infrastructure (22,418,002) (3,255,564) - (25,673,566)
Machinery and equipment (2,975,959) (614,657) 46,116 (3,544,500)
Intangibles (105,932) - - (105,932)
Total accumulated depreciation (25,537,071) (3,870,221) 46,116 (29,361,176)
Total capital assets being
depreciated, net 65,462,744 1,613,836 - 67,076,580
Business-type activities capital
assets, net 72,933,618$ 4,332,068$ (4,424,309)$ 72,841,377$ Beginning balance for business-type activities includes restatement for contributed
infrastructure amounting to $1,612,638 and corresponding accumulated depreciation
amount to $(538,661) for a total net change of $1,073,977.
Depreciation expense was charged to functions/programs as follows:
General government 233,599$
Public safety 785,523
Physical environment/transportation 424,884
Culture and recreation 234,384
Total depreciation expense - governmental activities 1,678,390$
Water 791,412$
Sewer 2,291,305
Sanitation 467,140
Stormwater 320,364
Total depreciation expense - business-type activities 3,870,221$
Governmental activities:
Business-type activities
50
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
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 business-type activities.
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 $21,037,919. For the fiscal year, principal and interest paid on this series was
$1,174,948 and total pledged revenue was $3,996,654.
The original amount of revenue bonds issued in prior years is described below. Revenue
bonds outstanding at year end are as follows:
Business-Type Activities
Interest Rates
and Dates Maturity Original Amount
Balance
September 30,
2013
Water and Sewer Revenue3.0 - 4.6%12/1/2010
Refunding Bonds,to
Series 2009 (6/1 & 12/1)12/1/203016,640,000$ 14,930,000$
Annual debt service requirements to maturity for revenue bonds are as follows:
Year ending September 30,PrincipalInterest
2014 615,000$ 561,798$
2015 630,000 543,123
2016 650,000 523,922
2017 670,000 504,123
2018 690,000 483,723
2019-2023 3,815,000 2,038,688
2024-2028 4,605,000 1,226,604
2029-2031 3,255,000 225,938
Total14,930,000$ 6,107,919$
Business - Type Activities
Current Refunding
The City issued Public Improvement Refunding Revenue Note, Series 2012, in the
amount of $2,612,000 with interest of 1.09%. The refunding was undertaken to reduce
total future debt service payments. The proceeds were used to currently refund
$3,080,000 of outstanding Public Improvement Revenue Bonds, Series 2002 which had
interest rates ranging from 1.75% - 4.6%. This transaction resulted in an economic gain
of $194,354 and a reduction of $201,148 in future debt service payments.
51
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 8 - Long-Term Debt (Continued):
Notes Payable
Public improvement revenue notes outstanding at year end are as follows:
Governmental Activities
Interest Rates
and Dates Maturity Original Amount
Balance
September 30,
2013
Public Improvement Refunding1.09%12/1/2013
Revenue Note,to
Series 2012 (6/1 & 12/1)12/1/20172,612,000$ 2,612,000$
Annual debt service requirements to maturity for revenue bonds are as follows
Year ending September 30,PrincipalInterest
2014 570,599$ 25,361$
2015 577,959 19,101
2016 585,609 12,760
2017 591,692 6,344
2018 286,141 1,559
Total2,612,000$ 65,125$
Governmental Activities
Changes in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2013 was as follows:
Beginning
Balance AdditionsDeductions
Ending
Balance
Due Within
One Year
Governmental activities
Public improvement revenue bonds3,080,000$ -$ (3,080,000)$ -$ -$
Public improvement revenue note - 2,612,000 - 2,612,000 570,599
Other post employment benefits1,629,979 665,214 - 2,295,193 -
Compensated absences 674,309 13,186 (67,431) 620,064 62,006
Governmental activity long-term
liabilities 5,384,288$ 3,290,400$ (3,147,431)$ 5,527,257$ 632,605$
Business-type activities
Bonds payable-
Revenue bonds 15,525,000$ -$ (595,000)$ 14,930,000$ 615,000$
Premium 51,742 - (2,836) 48,906 -
Total bonds payable 15,576,742 - (597,836) 14,978,906 615,000
Other post employment benefits585,021 239,841 - 824,862 -
Compensated absences 254,516 12,406 (25,452) 241,470 24,147
Business-type activity long-term
liabilities 16,416,279$ 252,247$ (623,288)$ 16,045,238$ 639,147$
52
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 9 - Interfund Receivables, Payables and Transfers:
Interfund transfers for the year ended September 30, 2013 consisted of the following:
GeneralCapital ProjectsDebt Service
Transfers Out:Fund Fund Fund Total
General Fund -$ -$ 69,606$ $ 69,606
Infrastructure Special Revenue Fund - 1,162,892 417,639 1,580,531
Community Redevelopment Special -
Revenue Fund - 199,000 - 199,000
Nonmajor Governmental 6,388 664,088 92,809 763,285
Water Fund 478,539 - - 478,539
484,927$ 2,025,980$ 580,054$ 3,090,961$
Transfer In
The majority of the transfers above were to cover various capital projects and debt service
payments. 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.
53
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
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 position.
Publicly available financial reports for each plan, that include detailed actuarial data, can be
obtained from the City’s Finance Department.
Plan Descriptions and Contribution Information -
Membership of each of the defined benefit pension plans consisted of the following at
October 1, 2011 for general employees and October 1, 2012 for police officers and
firefighters, the dates of the latest actuarial valuations:
General
Employees Police OfficersFirefighters
Retirees and beneficiaries
currently receiving benefits 9 12 1
Terminated plan members entitled to,
but not yet receiving, benefits - 25 63
Active plan members - 53 49
Total 9 90 113
Plan Descriptions- The general employees defined benefit pension plan is for general
employees hired prior to September 30, 1985. The police officers’ and firefighters’ defined
benefit pension plans are both local law, single employer, defined benefit pension plans as
defined under Florida Statutes, Chapters 175 and 185, which covers all sworn police officers
and firefighters. Employees are eligible to participate in the plan immediately upon
employment with the City, and they are vested in the plan after ten years of service.
The normal retirement date for firefighters is the attainment of age 55 and 10 years of service,
or earlier attainment of age 52 and 25 years of service. The normal retirement date for police
officers is the attainment of age 55 and 10 years of service, or 20 years of service, regardless
of age. The normal retirement benefit is the number of years of credited service prior to
October 1, 2002 multiplied by 2.25%, and the number of years of credited service after
October 1, 2002 multiplied by 3%, and multiplied by the average final monthly compensation.
Early retirement is available after age 50 and 10 years of service; however, the early
retirement benefit is reduced by 2% for each year before the normal retirement date.
54
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 10 - Retirement Plans (Continued):
Contributions - The City’s actuarially determined contribution rate per the October 1, 2011
for general employees and October 1, 2012 for police officers and firefighters actuarial
valuations is $0 for general employees, 19.73% for police officers and 20.35% for
firefighters. The City is no longer obligated to make contributions for general employees.
Police officers make a minimum mandatory contribution of 3% and firefighters make a
minimum mandatory contribution of 1%, in order to take advantage of the insurance
premium tax rebate provided for in the statutes. Administrative costs are deducted from the
net position of the plan.
Annual Pension Cost and Net Pension Obligation - The City’s annual pension cost and net
pension obligation for the current year were as follows:
General
Employees Police Officers Firefighters
Annual Required Contribution (ARC)-$ 478,414$ 563,291$
Interest on the Net Pension Obligation (Asset)- (22,294) (9,700)
Adjustment to ARC - 12,839 5,587
Annual Pension Cost -$ 468,959$ 559,178$
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
9/30/2013 -$ N/A
9/30/2012 N/A
9/30/2011 3,051 100%
9/30/2013 468,959$ 100%
9/30/2012 661,002 100%
9/30/2011 749,038 100%
9/30/2013 559,178$ 100%
9/30/2012 650,379 100%
9/30/2011 650,789 100%
General Employees
Police Officers
Firefighters
55
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 10 - Retirement Plans (Continued):
Funded Status and Funding Progress - Pension Plans
The funded status of each plan as of October 1, 2011 for general employees and October 1,
2012 for police officers and firefighter, the most recent actuarial valuation dates, 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 Employees488,225$ 412,730$ -$ 118.3%-$ N/A
Police Officers9,291,324 8,632,023 - 107.6%2,424,191 0.0%
Firefighters 5,898,932 5,068,853 - 116.4%2,767,580 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 EmployeesPolice Officers Firefighters
Valuation date 10/1/2011 10/1/2012 10/1/2012
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
56
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 10 - Retirement Plans (Continued):
General Employee Defined Contribution Pension Plan - The defined Contribution
Pension Plan for General Employees of the City of Clermont was established October 1,
1985, as defined in Chapter 16, Article IV, of the Clermont Code, and is available to all
permanent general employees of the City, once they have completed one year of
employment. Employees are fully vested in the plan after ten years of service.
In a defined contribution plan, benefits depend solely on amounts contributed to the plan,
plus investment earnings. Contributions for, and interest forfeited by, employees who
terminate employment before five years of service are used to reduce the City’s current
period contributions.
Covered payroll for this Plan for fiscal year 2013 was $5,087,353; the City’s total payroll for
City employees was $12,112,210.
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 2013 was $508,546.
Note 11 - Other Post Employment Benefits:
In accordance with Florida Statutes Section 112.0801, the City makes continued group
health and dental insurance through the city’s current provider available to retirees and
eligible dependents provided certain service requirements and normal age retirement
requirements have been met. This plan is a single employer plan. The City is self insured
with respect to these benefits and provides an explicit subsidy for coverage to retirees and
their spouses based on the coverage selected. The City has eleven retirees currently
receiving benefits. The City has chosen pay-as-you-go funding, but is recording the liability
in the government wide financial statements. This plan does not issue stand-alone financial
statements.
57
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 11 - Other Post Employment Benefits (Continued):
The most recent actuarial report for the City’s Retiree Continuation Insurance Plan was
prepared as of April 1, 2013. The annual required contribution and Net OPEB Obligation for
the fiscal year ended September 30, 2013 is as follows:
Annual required contribution 1,112,968$
Interest on net OPEB Obligation 88,600
Adjustment to annual required contribution(191,557)
Annual OPEB Cost 1,010,011
Employer Contributions (104,956)
Increase in Net OPEB Obligation 905,055
Net OPEB Obligation (beginning of year)2,215,000
Net OPEB Obligation (end of year)3,120,055$
Three Year Trend Information-
Fiscal
Year
Ending
Annual
OPEB Cost
Percentage
of Cost
Contributed
Net OPEB
Obligation
9/30/2011598,000$ 7.0%1,650,000$
9/30/2012614,000 8.0%2,215,000
9/30/20131,010,011 10.0%3,120,055
Funded Status and Funding Progress - OPEB
The funded status of the plan as of April 1, 2013, 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)
-$ 5,563,664$ 5,563,664$ 0.0%10,854,391$ 51.00%
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.
58
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 11 - Other Post Employment Benefits (Continued):
Summary of Actuarial Methods & Assumptions (Continued)
The schedule of funding progress, presented as required supplementary information
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 actuarial accrued liabilities for benefits.
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.
Benefits Not Included - None.
Discount Rate - 4.00%.
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
2014 8.00%2018 6.67%2022 5.33%
2015 7.67%2019 6.33%2023 5.00%
2016 7.33%2020 6.00%and later
2017 7.00%2021 5.67%
Retiree Contribution Trend - Same as Health Care Trend.
Mortality - RP-2000 Combined Mortality Table for males and females with mortality
improvement projected to 2013 using Scale AA.
Disability Rates - None.
59
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 11 - Other Post Employment Benefits (Continued):
Morbidity:
Age
Rate Per
Age
Under 65 3.50%
65 - 69 3.00%
70 - 74 2.50%
75 - 85 1.50%
86 and older0.00%
Election at Retirement - One-third of future retirees will elect medical and dental coverage
at retirement.
Participation - Actual coverage status is used. Active employees are assumed to continue
at the current participation and coverage level in the active plan into retirement. If an
employee waived active coverage, they are assumed to elect the OAP Plan.
Marital Status - One-third of active employees who elect retiree coverage are assumed to
elect coverage for their spouse. Males are assumed to be three years older than females.
Actual spouse data was used for current retirees.
60
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
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 $100,000 per year in medical, dental, or prescription
claims for each covered employee. The City purchases commercial insurance for claims in
excess of coverage provided by the fund with a total aggregate stop-loss of $2,000,000.
There has been no reduction in insurance coverage from that carried in the prior year.
Claims provided have not exceeded insurance coverage in any of the past three fiscal
years.
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 $62,051 represents claims processed through October 2013 which
were applicable to the current fiscal year and any additional claims are deemed immaterial.
Changes to the current claims liability are as follows:
20132012
Claims liabilities, beginning of year113,599$ 113,599$
Incurred Claims 2,507,8042,859,648
Payments on Claims (2,559,352) (2,926,953)
Claims liabilities, end of year 62,051$ 46,294$
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, 2013. 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.
61
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 13 - Commitments and Contingencies (Continued):
Encumbrances - At September 30, 2013, the City had encumbrance commitments in the
Governmental Funds consisting of $830 for the General Fund.
Note 14 - Fund Balances:
The City classifies the components of fund balance based on the classifications described
below:
Nonspendable
Nonspendable funds include fund balance amounts that are (a) not in spendable form or (b)
legally or contractually required to be maintained intact.
Spendable Fund Balance
Restricted - includes fund balance amounts that can be spent only for specific purposes
stipulated by (a) external resource providers such as creditors (by debt covenants), grantors,
contributors, or laws and regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation.
Committed - includes fund balance amounts that can be used only for the specific purposes
determined by formal action of the City Council, the City’s highest level of decision making
authority, with formal action occurring prior to the fiscal year end. Commitments may be
changed or lifted only by the City Council taking the same formal action (Resolution) that
imposed the constraint originally.
Assigned - includes spendable fund balance amounts that are intended to be used for
specific purposes that are neither considered restricted or committed. The City Council is
authorized to assign amounts for a specific purpose.
Unassigned - includes residual positive fund balance within the General Fund which has not
been classified within the other above mentioned categories. Unassigned fund balance may
also include negative balances for any governmental fund if expenditures exceed amounts
restricted, committed, or assigned for those specific purposes.
The City considers restricted amounts to be spent first when both restricted and unrestricted
fund balance is available unless there are legal documents/contracts that prohibit doing this,
such as in grant agreements requiring dollar for dollar spending. Additionally, the City would
first use committed, then assigned, and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.
62
CITY OF CLERMONT, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
Note 14 - Fund Balances (Continued):
At September 3, 2013, the City’s governmental fund balances were as follows:
General
Fund
Infrastructure
Special
Revenue Fund
Community
Redevelopment
Special Revenue
Debt
Service
Other
Governmental
Funds Total
Fund Balances
Nonspendable
Inventory/prepaids 189,366$ -$ 629$ -$ 1,024$ $ 191,019
Cemetery - - - - 937,560 937,560
Spendable
Restricted for:
Public safety 256,799 - - - 3,078,777 3,335,576
Culture and recreation - - - - 1,671,643 1,671,643
Community redevelopment - - 707,046 - - 707,046
Infrastructure - 2,346,207 - - - 2,346,207
Debt service - - - 491,071 - 491,071
Assigned for:
General government 830 - - - - 830
Police and fire donations4,793
Subsequent year
expenditures 759,225 - - - - 759,225
Unassigned 8,878,429 - - - - 8,878,429
10,089,442$ 2,346,207$ 707,675$ 491,071$ 5,689,004$ 19,318,606$
Note 15 - Evaluation of Events:
The City has evaluated subsequent events through the date of this report, the date the
financial statements were available to be issued.
Subsequent to year end, the City purchased property for $6,300,000 and financed the
purchase with a $6,000,000 loan.
63
64
REQUIRED SUPPLEMENTAL INFORMATION
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2013
Schedules of Funding Progress - Pension Plans
Actuarial Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability
(AAL) -
Entry Age
(b)
Unfunded
AAL
(UAAL)
(b - a)
Funded
Ratio
(a / b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b - a) / c)
General Employees
10/1/2004863,278 863,278 - 100.0%- N/A
10/1/2005816,972 816,972 - 100.0%- N/A
10/1/2006794,277 794,277 - 100.0%- N/A
10/1/2007822,401 822,401 - 100.0%- N/A
10/1/2009573,379 566,885 - 101.2%- N/A
10/1/2011488,225 412,730 - 118.3%- N/A
Police Officers
10/1/20043,032,203 3,032,203 - 100.0%1,424,568 0.0%
10/1/20053,571,295 3,571,295 - 100.0%1,534,254 0.0%
10/1/20074,905,071 4,905,071 - 100.0%2,356,375 0.0%
10/1/20095,288,822 6,163,934 875,112 85.8%2,485,033 35.2%
10/1/20117,341,114 7,908,270 567,156 92.8%2,548,993 22.3%
10/1/20129,291,324 8,632,023 - 107.6%2,424,191 0.0%
Fire Fighters
10/1/20051,256,347 1,256,347 - 100.0%1,047,097 0.0%
10/1/20061,345,093 1,345,093 - 100.0%1,257,860 0.0%
10/1/20071,972,299 1,972,299 - 100.0%2,031,230 0.0%
10/1/20092,609,047 2,596,659 - 100.5%2,552,427 0.0%
10/1/20114,284,079 4,224,986 - 101.4%2,792,489 0.0%
10/1/20125,898,932 5,068,853 - 116.4%2,767,580 0.0%
65
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2013
Schedules of Employer Contributions - Pension Plans
Year
Ended
9/30
Annual
Required
Contribution
Percentage
Contributed
Annual
Required
Contribution
Percentage
Contributed
Annual
Required
Contribution
Percentage
Contributed
2008 -$ 100%541,697$ 100%410,350$ 100%
2009 - 100%570,869 100%432,919 100%
2010 3,051 100%713,188 100%616,742 100%
2011 3,051 100%752,413 100%650,663 100%
2012 - 100%668,084 100%653,186 100%
2013 - 100%478,414 100%563,291 100%
General Employees Police Officers Firefighters
Employer Contributions
66
CITY OF CLERMONT, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2013
Schedule of Funding Progress - Retiree Continuation Insurance Plan
Actuarial
Valuation
Actuarial Value
of Assets
Actuarial
Accrued Liability
(AAL) Entry Age
Unfunded AAL
(UAAL)
Funded
Ratio Covered 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%
4/1/2011 -$ 2,909,000$ 2,909,000$ 0.0%10,342,000$ 28.1%
4/1/2013 -$ 5,563,664$ 5,563,664$ 0.0%10,854,391$ 51.0%
*initial valuation date
Schedule of Funding Progress
Schedule of Employer Contributions - Retiree Continuation Insurance Plan
Annual Required
Percentage
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
9/30/2011 649,000 7.0%1,650,000
9/30/2012 691,000 7.0%2,215,000
9/30/2013 1,112,968 10.0%3,120,055
Net OPEB
Obligation
67
68
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
Capital Projects Fund
Capital Projects Fund This fund was established to account for financial
resources segregated for the acquisition or
construction of major capital facilities.
Debt Service Fund This fund was established to account for the
accumulation of resources and payment of bond
principal and interest from governmental resources.
69
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 200,000$ 200,000$ -$ (200,000)$
Investment earnings 12,200 8,503 3,546 (4,957)
Miscellaneous - 110,000 - (110,000)
Total revenues 212,200 318,503 3,546 (314,957)
Expenditures:
Current:
General government 59,825 84,713 59,888 24,825
Culture and recreation - 42,673 - 42,673
Public safety:
Police 311,683 311,683 - 311,683
Capital Outlay:
General government 1,724,970 2,015,327 2,037,163 (21,836)
Public safety 2,408,227 2,408,227 353,772 2,054,455
Culture and recreation 990,118 1,057,445 246,583 810,862
Total expenditures 5,494,823 5,920,068 2,697,406 3,222,662
Excess (Deficiency) of Revenues Over
Expenditures (5,282,623) (5,601,565) (2,693,860) 2,907,705
Other Financing Sources:
Transfers in 4,379,336 4,698,278 2,025,980 (2,672,298)
Total other financing sources 4,379,336 4,698,278 2,025,980 (2,672,298)
Net Change in Fund Balance (903,287) (903,287) (667,880) 235,407
Fund Balances - Beginning 667,880 667,880 667,880 -
Fund Balances - Ending (235,407)$ (235,407)$ -$ 235,407$
CITY OF CLERMONT, FLORIDA
CAPITAL PROJECTS FUND
Year Ended September 30, 2013
70
CITY OF CLERMONT, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Budgeted Amounts Actual Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Investment earnings 2,500$ 2,500$ 1,939$ (561)$
Total revenues 2,500 2,500 1,939 (561)
Expenditures:
Debt Service:
Principal 510,000 3,080,000 3,080,000 -
Interest and fiscal charges 123,350 165,350 122,164 43,186
Total expenditures 633,350 3,245,350 3,202,164 43,186
Excess (Deficiency) of Revenues
Over Expenditures (630,850) (3,242,850) (3,200,225) 42,625
Other Financing Sources:
Refunding bonds issued - 2,612,000 2,612,000 -
Transfers in 632,900 632,900 580,054 (52,846)
Total other financing sources 632,900 3,244,900 3,192,054 (52,846)
Net Change in Fund Balances 2,050 2,050 (8,171) (10,221)
Fund Balances - Beginning 499,242 499,242 499,242 -
Fund Balances - Ending 501,292$ 501,292$ 491,071$ (10,221)$
DEBT SERVICE FUND
Year Ended September 30, 2013
71
72
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 which are restricted for use in
funding capital facilities and equipment directly
related to new growth.
Police Impact Fees Fund This fund was established to account for police
impact fees collected from new developments
constructed in the City which are restricted for use in
funding capital facilities and equipment directly
related to new growth.
Fire Impact Fee Fund This fund was established to account for fire impact
fees collected from new developments constructed
in the City which are restricted for use in funding
capital facilities and equipment directly related to
new growth.
Building Services Fund This fund was established to account for the
operations of the City’s building and other permits
department which are restricted for use in funding
capital facilities and equipment directly related to
new growth.
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.
73
Recreation
Impact Fees
Police Impact
Fees
Fire Impact
Fees
Building
Services Total
Assets:
Cash and cash equivalents 1,671,643$ 2,605,689$ 286,533$ 220,541$ 4,784,406$
Prepaid costs - - - 1,024 1,024
Total assets 1,671,643$ 2,605,689$ 286,533$ 221,565$ 4,785,430$
Liabilities and Fund Balances:
Liabilities:
Accounts payable -$ -$ -$ 33,986$ 33,986$
Total liabilities - - - 33,986 33,986
Fund balances:
Nonspendable - - - 1,024 1,024
Restricted 1,671,643 2,605,689 286,533 186,555 4,750,420
Total fund balances 1,671,643 2,605,689 286,533 187,579 4,751,444
Total liabilities and
fund balances 1,671,643$ 2,605,689$ 286,533$ 221,565$ 4,785,430$
Special Revenue
CITY OF CLERMONT, FLORIDA
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
September 30, 2013
74
Permanent Fund -
Cemetery
Perpetual Care
Total Nonmajor
Governmental
Funds
937,955$ 5,722,361$
- 1,024
937,955$ 5,723,385$
395$ 34,381$
395 34,381
937,560 938,584
- 4,750,420
937,560 5,689,004
937,955$ 5,723,385$
75
Recreation
Impact Fees
Police Impact
Fees
Fire Impact
Fees
Building
Services Total
Revenues:
Licenses and permits -$ -$ -$ 770,546$ 770,546$
Charges for services - - - 141,676 141,676
Impact fees/special assessments 1,186,699 395,913 326,158 - 1,908,770
Investment earnings 6,083 15,183 1,246 1,260 23,772
Miscellaneous - - - 374 374
Total revenues 1,192,782 411,096 327,404 913,856 2,845,138
Expenditures:
Current:
Public safety - - - 747,013 747,013
Total expenditures - - - 747,013 747,013
Excess (Deficiency) of Revenues
Over Expenditures 1,192,782 411,096 327,404 166,843 2,098,125
Other Financing Uses:
Transfers out (310,316) (353,772) (92,809) - (756,897)
Total other financing uses (310,316) (353,772) (92,809) - (756,897)
Net Change in Fund Balances 882,466 57,324 234,595 166,843 1,341,228
Fund Balances - Beginning 789,177 2,548,365 51,938 20,736 3,410,216
Fund Balances - Ending 1,671,643$ 2,605,689$ 286,533$ 187,579$ 4,751,444$
Year Ended September 30, 2013
Special Revenue
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
76
Permanent Fund -
Cemetery
Perpetual Care
Total Nonmajor
Governmental
Funds
-$ 770,546$
- 141,676
- 1,908,770
6,388 30,160
47,800 48,174
54,188 2,899,326
- 747,013
- 747,013
54,188 2,152,313
(6,388) (763,285)
(6,388) (763,285)
47,800 1,389,028
889,760 4,299,976
937,560$ 5,689,004$
77
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 375,300$ 375,300$ 1,186,699$ 811,399$
Investment earnings 5,000 5,000 6,083 1,083
Total revenues 380,300 380,300 1,192,782 812,482
Expenditures:
Current:
Culture and recreation 265,000 265,000 - 265,000
Total expenditures 265,000 265,000 - 265,000
Excess (Deficiency) of Revenues
Over Expenditures 115,300 115,300 1,192,782 1,077,482
Other Financing Uses
Transfers out (745,396) (745,396) (310,316) 435,080
Total other financing uses (745,396) (745,396) (310,316) 435,080
Net Change in Fund Balances (630,096) (630,096) 882,466 1,512,562
Fund Balances - Beginning 789,177 789,177 789,177 -
Fund Balances - Ending 159,081$ 159,081$ 1,671,643$ 1,512,562$
RECREATION IMPACT FEE SPECIAL REVENUE FUND
Year Ended September 30, 2013
78
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 83,600$ 83,600$ 395,913$ 312,313$
Investment earnings 19,800 19,800 15,183 (4,617)
Total revenues 103,400 103,400 411,096 307,696
Expenditures:
Current:
Public Safety:
Law enforcement - - - -
Total expenditures - - - -
Excess (Deficiency) of Revenues
Over Expenditures 103,400 103,400 411,096 307,696
Other Financing Sources (Uses)
Transfers out (2,590,000) (2,590,000) (353,772) 2,236,228
Total other financing sources (uses)(2,590,000) (2,590,000) (353,772) 2,236,228
Net Change in Fund Balances (2,486,600) (2,486,600) 57,324 2,543,924
Fund Balances - Beginning 2,548,365 2,548,365 2,548,365 -
Fund Balances - Ending 61,765$ 61,765$ 2,605,689$ 2,543,924$
POLICE IMPACT FEE SPECIAL REVENUE FUND
CITY OF CLERMONT, FLORIDA
Year Ended September 30, 2013
79
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 66,000$ 66,000$ 326,158$ 260,158$
Investment earnings 800 800 1,246 446
Total revenues 66,800 66,800 327,404 260,604
Expenditures:
Current:
Public safety:
Fire control - - - -
Total expenditures - - - -
Excess (Deficiency) of Revenues
Over Expenditures 66,800 66,800 327,404 260,604
Other Financing Uses:
Transfers out (101,264) (101,264) (92,809) 8,455
Total other financing sources (101,264) (101,264) (92,809) 8,455
Net Change in Fund Balances (34,464) (34,464) 234,595 269,059
Fund Balances - Beginning 51,938 51,938 51,938 -
Fund Balances - Ending 17,474$ 17,474$ 286,533$ 269,059$
CITY OF CLERMONT, FLORIDA
FIRE IMPACT FEE SPECIAL REVENUE FUND
Year Ended September 30, 2013
80
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 282,000$ 770,546$ 770,546$ -$
Charges for services 50,000 62,098 141,676 79,578
Investment earnings 200 200 1,260 1,060
Miscellaneous - - 374 374
Total revenues 332,200 832,844 913,856 81,012
Expenditures:
Current:
Public safety 331,195 759,241 747,013 12,228
Total expenditures 331,195 759,241 747,013 12,228
Excess (Deficiency) of Revenues
Over Expenditures 1,005 73,603 166,843 93,240
Net Change in Fund Balances 1,005 73,603 166,843 93,240
Fund Balances - Beginning 20,736 20,736 20,736 -
Fund Balances - Ending 21,741$ 94,339$ 187,579$ 93,240$
CITY OF CLERMONT, FLORIDA
BUILDING SERVICES SPECIAL REVENUE FUND
Year Ended September 30, 2013
81
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.
82
CITY OF CLERMONT, FLORIDA
September 30, 2013
Police
Officers Firefighters Total
Defined Defined Pension Pension Employee
Benefit Contribution Trust Trust Pension Funds
Assets:
Cash and cash equivalents 6,340$ $ - 156,411$ 104,636$ $ 267,387
Receivables:
Employer contribution receivable - 18,391 - 2,073 20,464
Due from other governments - - - - -
Total receivables - 18,391 - 2,073 20,464
Investments:
U.S. Government & other debt securities 189,233 - 4,668,269 3,122,972 7,980,474
Equities 292,141 5,443,757 7,206,942 4,821,289 17,764,129
Total Investments 481,374 5,443,757 11,875,211 7,944,261 25,744,603
Total assets 487,714 5,462,148 12,031,622 8,050,970 26,032,454
Liabilities:
Refunds payable and other - - 153,991 65,711 219,702
Total liabilities - - 153,991 65,711 219,702
Net Position Held in Trust
for Pension Benefits 487,714$ 5,462,148$ 11,877,631$ 7,985,259$ 25,812,752$
General Employees
FIDUCIARY FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
83
CITY OF CLERMONT, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
Year Ended September 30, 2013
Police
Officers Firefighters Total
Defined Defined Pension Pension Employee
Benefit Contribution Trust Trust
Pension
Funds
Additions:
Contributions:
Employer -$ 508,546$ 475,318$ 541,093$ 1,524,957$
Plan members - - 90,850 29,277 120,127
State - - 211,000 185,400 396,400
Total contributions - 508,546 777,168 755,770 2,041,484
Investment earnings:
Net increase (decrease) in fair value of
investments 56,009 649,169 1,242,472 839,115 2,786,765
Total net investment earnings 56,009 649,169 1,242,472 839,115 2,786,765
Total additions 56,009 1,157,715 2,019,640 1,594,885 4,828,249
Deductions:
Benefits/distributions 66,212 621,228 262,748 396,134 1,346,322
Administrative expenses 1,985 27,206 32,043 28,488 89,722
Total deductions 68,197 648,434 294,791 424,622 1,436,044
Change in Net Position (12,188) 509,281 1,724,849 1,170,263 3,392,205
Net Position Held in Trust for Pension Benefits
Beginning of Year 499,902 4,952,867 10,152,782 6,814,996 22,420,547
End of Year 487,714$ 5,462,148$ 11,877,631$ 7,985,259$ 25,812,752$
General Employees
84
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 86
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 96
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property tax.
Debt Capacity 101
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 105
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 111
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.
85
2004 20052006 2007
Governmental activities
Net investment in capital assets 10,959$ 12,118$ 15,777$ 15,825$
Restricted 3,1214,8005,935 7,830
Unrestricted 5,6198,1258,69314,459
Total governmental activities net position 19,699$ 25,043$ 30,405$ 38,114$
Business-type activities
Net investment in capital assets 12,054$ 12,082$ 15,864$ 24,837$
Restricted 22,60127,57333,73236,931
Unrestricted 9,90313,41413,44710,841
Total business-type activities net position 44,558$ 53,069$ 63,043$ 72,609$
Primary government
Net investment in capital assets 23,013$ 24,200$ 31,641$ 40,662$
Restricted 25,72232,37339,66744,761
Unrestricted 15,52221,53922,14025,300
Total primary government net position 64,257$ 78,112$ 93,448$ 110,723$
Fiscal Year
City of Clermont, Florida
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
86
2008 2009 2010 2011 2012 2013
27,462$ 33,938$ 33,817$ 34,894$ 36,612$ 39,950$
8,959 6,526 6,693 7,381 8,876 9,490
11,94613,60813,98812,465 9,701 7,723
48,367$ 54,072$ 54,498$ 54,740$ 55,189$ 57,163$
46,569$ 54,834$ 55,540$ 56,430$ 57,241$ 57,863$
13,89910,43717,293 9,241 9,477 9,536
18,10317,80111,40719,37620,43624,191
78,571$ 83,072$ 84,240$ 85,047$ 87,154$ 91,590$
74,031$ 88,772$ 89,357$ 91,324$ 93,853$ 97,813$
22,85816,96323,98616,62218,35319,026
30,04931,40925,39531,84130,13731,914
126,938$ 137,144$ 138,738$ 139,787$ 142,343$ 148,753$
Fiscal Year
87
Expenses 2004200520062007
Governmental activities:
General government 2,337$ 2,617$ 3,232$ 3,297$
Public safety 4,6885,7737,1098,783
Physical environment 421 278 382 470
Transportation/public works 1,0561,1721,3221,255
Economic environment 32 13 181 52
Human services 132 149 77 130
Culture and recreation 1,7421,8161,8512,441
Interest on long-term debt 350 255 285 226
Total governmental activities expenses 10,75812,07314,43916,654
Business-type activities:
Water 2,7073,0153,4272,987
Sewer 3,4233,5724,0243,896
Sanitation 1,6171,8171,7311,816
Stormwater 266 287 316 427
Total business-type activities expenses 8,0138,6919,4989,126
Total primary government expenses 18,771$ 20,764$ 23,937$ 25,780$
Program Revenues
Governmental activities:
Charges for services:
General government 963$ 1,042$ 1,037$ 1,116$
Public safety 807 9121,1581,105
Transportation/public works 250 36 - -
Culture and recreation 1,009 4631,566 882
Operating grants and contributions 591 512 523 923
Capital grants and contributions - 1,644 1052,518
Total governmental activities
program revenues 3,6204,6094,3896,544
Business-type activities:
Charges for services:
Water 4,342$ 4,320$ 4,839$ 5,502$
Sewer 2,8323,2953,7844,242
Sanitation 1,8112,0882,2362,402
Stormwater 571 627 689 729
Operating grants and contributions 105 138 11 38
Capital grants and contributions 7,0956,2876,4083,676
Total business-type activities
program revenues 16,75616,75517,96716,589
Total primary government program revenues20,376$ 21,364$ 22,356$ 23,133$
Fiscal Year
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
88
200820092010201120122013
4,204$ 4,747$ 4,287$ 3,643$ 4,211$ 3,258$
10,33010,77512,45912,53112,16812,685
514 364 319 279 248 303
1,5441,1641,7681,6611,7191,725
48 101 50 102 116 200
107 - - - - -
2,0612,0822,0551,8221,0451,928
459 326 175 156 137 87
19,26719,55921,11320,19419,64420,186
3,7373,9904,3164,4614,0524,154
4,5214,4895,9276,0225,7526,106
2,1232,0862,1692,3642,5672,465
549 534 848 955 939 897
10,93011,09913,26013,80213,31013,622
30,197$ 30,658$ 34,373$ 33,996$ 32,954$ 33,808$
1,582$ 1,854$ 1,857$ 1,695$ 1,649$ 2,117$
975 1,203 665 355 450 1,040
- - - - - -
761 99 872 539 604 1,262
1,047 921 1,162 1,237 1,191 896
7,330 3,307 134 129 27 112
11,6957,3844,6903,9553,9215,427
5,654$ 4,909$ 4,817$ 5,377$ 5,099$ 5,215$
4,422 4,655 4,852 5,065 5,154 5,357
2,515 2,560 2,613 2,688 2,721 2,775
766 801 829 855 855 862
700 - - - - -
1,480 2,137 1,544 999 1,752 3,430
15,53715,06214,65514,98415,58117,639
27,232$ 22,446$ 19,345$ 18,939$ 19,502$ 23,066$
Fiscal Year
89
City of Clermont, Florida
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2004200520062007
Net (expense)/revenue
Governmental activities (7,138)$ (7,464)$ (10,050)$ (10,110)$
Business-type activities 8,7438,0648,4697,463
Total primary government net expense 1,605$ 600$ (1,581)$ (2,647)$
General Revenues and Other Changes
in Net Position
Governmental activities:
Taxes
Property taxes 3,371$ 4,417$ 5,665$ 7,452$
Business taxes ****
Franchise fees 1,1281,3571,7141,808
Utility taxes 1,3821,5521,7821,881
Unrestricted intergovernmental revenues 3,2793,9234,9534,952
Unrestricted investment earnings
and miscellaneous revenues 1861,181 8351,216
Transfers 385 377 464 509
Total governmental activities 9,73112,80715,41317,818
Business-type activities:
Investment earnings 390$ 825$ 1,968$ 2,612$
Transfers (385)(377)(464)(509)
Total business-type activities 5 4481,5042,103
Total primary government 9,736$ 13,255$ 16,917$ 19,921$
Change in Net Position
Governmental activities 2,593$ 5,343$ 5,363$ 7,708$
Business-type activities 8,7488,5129,9739,566
Total primary government 11,341$ 13,855$ 15,336$ 17,274$
*Business taxes previously reported as General Government Charges for Services
Fiscal Year
90
200820092010201120122013
(7,572)$ (12,175)$ (16,422)$ (16,240)$ (15,721)$ (14,759)$
4,6053,9641,3951,1822,2714,018
(2,967)$ (8,211)$ (15,027)$ (15,058)$ (13,450)$ (10,741)$
7,749$ 7,601$ 6,844$ 5,966$ 5,535$ 5,350$
****113111
1,9112,1512,3732,2852,1892,123
1,9922,1522,5582,5682,4302,490
4,7764,4584,5034,6645,0635,802
9011,050 525 478 388 378
496 469 443 520 453 479
17,82517,88117,24616,48116,17116,733
1,853$ 1,005$ 360$ 145$ 289$ 167$
(496) (469) (443) (520) (453) (479)
1,357 536 (83)(375)(164)(312)
19,182$ 18,417$ 17,163$ 16,106$ 16,007$ 16,421$
10,253$ 5,706$ 824$ 241$ 450$ 1,974$
5,9614,5001,312 8072,1073,706
16,214$ 10,206$ 2,136$ 1,048$ 2,557$ 5,680$
Fiscal Year
91
2004 2005 2006
General fund
Reserved 168$ 198$ 233$
Unreserved 4,207 5,758 4,857
Total general fund 4,375$ 5,956$ 5,090$
All other governmental funds
Reserved 894$ 1,083$ 1,189$
Unreserved, reported in:
Special revenue funds 3,410 5,028 7,767
Capital projects fund - 926 780
Total all other governmental funds 4,304$ 7,037$ 9,736$
2011 2012 2013
General fund
Nonspendable 335$ 195$ 189$
Restricted 175 224 257
Assigned 912 1,039 765
Unassigned 10,048 9,744 8,878
Total general fund 11,470$ 11,202$ 10,089$
All other governmental funds
Nonspendable 848$ 890$ 939$
Restricted 6,359 7,763 8,295
Assigned 2,854 668 -
Unassigned (1)- -
Total all other governmental funds 10,060$ 9,321$ 9,234$
Post GASB 54
Fiscal Year
City of Clermont, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
92
2007 2008 2009 2010
307$ 209$ 214$ 246$
9,128 9,57210,86011,358
9,435$ 9,781$ 11,074$ 11,604$
1,539$ 1,912$ 2,267$ 2,758$
10,771 5,314 4,147 4,839
843 4,496 3,271 2,978
13,153$ 11,722$ 9,685$ 10,575$
Fiscal Year
93
20042005 2006 2007
Revenues
Taxes 6,791$ 8,391$ 10,327$ 11,141$
Franchise Fees ****
Licenses and permits 467484 456 491
Intergovernmental revenue 2,7585,2164,2118,340
Charges for services 381389 407 462
Fines and forfeitures 125164 226 175
Impact fees/special assessments 1,5921,1522,4441,717
Investment income 107267 7381,101
Miscellaneous 541310 505 391
Total revenues 12,76216,37319,31423,818
Expenditures
General government 1,432$ 2,053$ 2,694$ 3,079$
Public Safety 4,2745,2856,4529,141
Physical environment 278318 343 461
Transportation 1,055917 9671,189
Economic environment 32 33 38 48
Human services 122139 75 129
Culture and recreation 1,0091,0251,2591,556
Capital outlay 2,7522,48410,235 94
Debt service
Principal 507855 868 449
Interest 268258 244 440
Other charges - - - -
Total expenditures 11,72913,36723,17516,586
Excess of revenues
over (under) expenditures 1,033$ 3,006$ (3,861)$ 7,232$
Other financing sources (uses)
Refunding bonds issued -$ -$ -$ -$
Transfers in 1,2171,0811,6761,265
Transfers out (832)(704)(1,212)(756)
Debt issuance 800 - 5,250 -
Sale of capital assets - 931 - -
Payments to refunded bond escrow agent - - - -
Total other financing sources (uses)1,1851,3085,714 509
Net change in fund balances 2,218$ 4,314$ 1,853$ 7,741$
Debt service as a percentage of noncapital
expenditures8.6%10.2%9.3%7.1%
* Note: Franchise Fees previously reported as Taxes.
**Note: Increase in % due to refunding of 2002 bonds. Without the refunding the % would be 2.8%
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)
94
2008 2009 2010 2011 2012 2013
11,652$ 11,903$ 11,775$ 10,819$ 8,079$ 7,951$
****2,1882,123
835 674 678 528 455 884
11,9778,6665,7336,0596,3106,729
6431,1031,0361,0131,0111,085
321 178 189 186 215 172
1,209 9031,131 582 6791,909
687 848 379 148 244 108
1,683 444 522 612 474 622
29,00724,71921,44319,94719,65521,583
3,640$ 3,654$ 4,081$ 3,272$ 3,080$ 3,148$
10,99910,27511,21211,62511,35212,579
497 490 309 275 247 307
2,9761,1291,6201,4721,3401,263
48 102 50 102 641 722
105 - - - - -
10,0241,8931,8781,7921,7692,014
1,9091,738 6431,9232,0732,638
8,1766,259 493 470 4903,080
465 375 181 162 143 122
- - - - - -
38,83925,91520,46721,09321,13525,873
(9,832)$ (1,196)$ 976$ (1,146)$ (1,480)$ (4,290)$
-$ -$ -$ -$ -$ 2,612$
6,4686,6842,0883,2741,1183,091
(5,971)(6,232)(1,645)(2,776)(644)(2,612)
8,250 - - - - -
- - - - - -
- - - - - -
8,747 452 443 498 4743,091
(1,085)$ (744)$ 1,419$ (648)$ (1,006)$ (1,199)$
23.4%28.9%3.6%3.3%3.5%14.9%**
Fiscal Year
95
FiscalPropertyUtilityBusinessFranchise
YearTaxTaxTaxFeesTotal
20043,3052,292*1,1286,725
20054,3212,617*1,3578,295
20065,4882,948*1,71410,150
20077,1553,138*1,80812,101
20087,7491,992*1,91111,652
20097,6012,152*2,15111,904
20106,8442,558*2,37311,775
20115,9662,568*2,28510,819
20125,5352,4301132,18910,267
20135,3502,4901112,12310,074
FiscalSalesState RevenueLocal Option
YearTaxSharingGas TaxTotal
20047812422681,291
20059303282751,533
20061,1573682861,811
20071,2103883251,923
20081,1393563001,795
20091,0333022891,624
20101,0532993221,674
20111,1003283061,734
20121,2963832961,975
20131,4195352802,234
* Business Tax Receipts previously reported under Licenses
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)
96
Fiscal TotalEstimatedAssessed
Year Less:Total TaxableDirectActualValue as a
EndedReal*PersonalTax ExemptAssessedTaxTaxablePercentage of
Sep 30PropertyPropertyPropertyValueRateValueActual Value
2004793,58392,764166,209720,1383.729 886,34781.25%
20051,041,341112,546238,373915,5143.7291,153,88779.34%
20061,363,931133,687299,1621,198,4563.7291,497,61880.02%
20071,771,503153,086382,8851,541,7043.7291,924,58980.11%
20082,466,549171,470620,7502,017,2693.1422,638,01976.47%
20092,975,139186,835676,3712,485,6033.1423,161,97478.61%
20103,022,925195,808792,9972,425,7363.1423,218,73375.36%
20112,592,111211,950599,8212,204,2403.1422,804,06178.61%
20122,171,815209,726598,1871,783,3543.1422,381,54174.88%
20132,124,017206,870605,1141,725,7733.1422,330,88774.04%
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)
97
Direct Rate
City ofLakeSouthLakeSt. JohnsTotal
ClermontCountyLakeCountyRiver WaterDirect &
FiscalOperatingOperatingVotedAmbulanceSchoolHospitalWaterManagementOverlapping
YearMillageMillageDebt ServiceMSTUDistrictDistrictAuthorityDistrictRates
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
20113.14204.73090.11010.38537.52300.86660.24050.415817.4142
20123.14204.73090.11010.38537.39400.80000.24050.331317.1341
20133.14204.73090.19000.38537.32000.80000.25540.331317.1549
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 $1,000 of assessed value)
98
Percentage of Percentage of
Taxable Total TaxableTaxable Total Taxable
Assessed AssessedAssessed Assessed
Taxpayer ValueRankValueValueRankValue
John P. Adams & Ann D. 24,625$ 11.43%8,42480.92%
Adams Family LP
Fountains at Clermont LLC18,25121.06%
Westdale Sundance LDT 16,37230.95%
MRP Lost Lake LLC 15,84440.92%
Weingarten I-4 Clermont Landing 12,37050.72%
Village at East Lake 12,29660.71%9,54961.04%
South Lake Hospital, Inc.11,86170.69%16,486$ 11.80%
Wal-Mart Stores East LP 10,06580.58%0.00%
Progress Energy Florida Inc.10,02290.58%0.00%
Target Corporation 9,198100.53%11,91731.30%
Lennar Homes Inc.16,06521.75%
Sundance Clermont LLC 11,90041.30%
Clermont Center LTD 11,25751.23%
Lucas Clermont Ltd Partnership 8,98170.98%
Sprint Florida Inc 7,96790.87%
Chester C Fosgate Co 7,178100.78%
TOTAL 140,904$ 8.16%109,724$ 11.98%
Source: Lake County Property Appraiser
2013 2004
City of Clermont, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
99
Fiscal
YearTotal TaxCollections in
EndedLevy forPercentageSubsequentPercentage
SeptemberFiscal YearAmountof LevyYearsAmountof Levy
20043,4143,29396.5%103,30396.8%
20054,4694,31096.4%54,31596.6%
20065,7495,54496.4%- 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%
2011 6,0015,69895.0%15 5,71395.2%
2012 5,6035,32595.0%5 5,33095.1%
2013 5,4225,15395.0%8 5,16195.2%
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
100
Business-Type
FiscalActivities
YearWater & SewerTotalPercentage
EndedRevenueNotesRefundingPrimaryof Personal
SeptBondsPayableRevenue BondsGovernmentIncome1 Per Capita1
20046,5751,064 17,93525,574 *1,449
20056,180605 17,83524,620 *1,230
20065,7755,392 17,68528,852 5.66%1,312
20075,3605,358 17,45528,173 5.63%1,231
20084,9355,857 17,06527,857 4.00%1,187
20094,495 38 16,65521,188 2.95%876
20104,040 - 16,64020,680 2.84%720
20113,570 - 16,10519,675 2.63%670
20123,080 - 15,52518,605 2.49%634
2013 - 2,612 14,93017,542 2.19%581
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 104 for personal income and population data.
* Information is not available.
City of Clermont, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Governmental Activities
101
Percentage Amount
Total Applicable toApplicable to
OutstandingCity of Clermont (1)City of Clermont
Direct:
City of Clermont2,612$ 100%2,612$
Total Direct Debt2,612$ 2,612$
Overlapping:
Lake County 25,705 11%2,828
School District of Lake County - 11%-
Total Overlapping Debt 25,705$ 2,828$
Total direct and overlapping debt
payable from ad valorem taxes 28,317$ 5,440$
Estimated Population 30,201
Total direct and overlapping debt per capita 180.11$
(1) Estimates based on ratio of assessed taxable values.
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, 2013
102
PublicCommunications Total Revenue
FiscalServiceServiceHalf-CentAvailable for
YearTaxesTaxSales TaxDebt ServicePrincipalInterestCoverage
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
20112,568,1411,233,7891,100,1254,902,055470,000161,8067.76
20122,430,4401,257,2171,295,6874,983,344490,000143,3507.87
20132,490,4611,349,9291,418,7105,259,100510,000133,1008.18
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Public Improvement Revenue Bonds, Series 2002
Debt Service
City of Clermont, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years
103
Water andWater and
SewerSewerNet Revenue
FiscalOperatingOperatingAvailable for
YearRevenues1 Expenses2 Debt ServicePrincipalInterestCoverage
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
201110,561,2957,080,5923,480,703535,000660,6402.91
201210,496,5356,377,6954,118,840580,000643,3073.37
201310,687,9086,677,7744,010,134595,000579,9483.41
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
104
Personal Education
Income Level in
(amountsPer Capita Years of
Fiscal expressed inPersonalMedianFormalSchoolUnemploy-
YearPopulation1 thousands)Income2 Age2 Schooling2 Enrollment3 ment Rate4
200315,391****4,6305.4%
200417,654****5,2194.6%
200520,017****5,1654.0%
200621,986509,98723,19635.913.55,6403.3%
200722,882500,33821,86636.813.65,9153.8%
200823,476696,04029,64939.613.25,4367.1%
200924,199717,59729,65439.713.24,90012.3%
201028,742727,00025,29436.813.65,0249.8%
201129,358748,48225,49540.913.65,1169.3%
201229,827784,36126,29746.813.65,1587.0%
201330,201802,80326,58241.513.85,1535.8%
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 was only available on a countywide basis through 2009.
* Information is not available.
City of Clermont, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
105
Percentage of Percentage of
Total City Total City
Employer EmployeesRankEmploymentEmployeesRankEmployment
Total City Employment 23,532 8,114
South Lake Hospital, Inc.1,04514.44%815110.04%
Publix Supermarkets 61022.59%20052.46%
Crotthall Laundry Services 52032.21%
Lake County School System 34041.44%53726.62%
Walmart 31651.34%
Target Corporation 31061.32%3153
City of Clermont 25371.08%20542.53%
Winn Dixie 20780.88%1259
Senninger Irrigation 19090.81%
Clermont Health & Rehab Ctr 175100.74%18982.33%
Kmart 100101.23%
CBS Builders Supply Inc.20072.46%
Home Depot 20062.46%
TOTAL 3,966 16.85%1,871 23.06%
Source: Florida Agency for Workforce Innovation, Labor Market Statistics Center
2013 2004
City of Clermont, Florida
Principal Employers
Current Year and Nine Years Ago
106
Usage Percentage ofUsage Percentage of
(thousands Total City(thousands Total City
Employer of gallons)RankMetered Flow1 of gallons)RankMetered Flow
Kings Ridge242,120110.12%* * *
City of Clermont51,14022.14%* * *
South Lake Hospital33,25931.39%* * *
Lake County Schools26,34541.10%* * *
Westminster Comm Care Service17,02650.71%* * *
The Vista at Lost Lake13,53260.57%* * *
Gardens at Citrus Tower13,26770.55%* * *
Sundance Clermont Apartments11,82080.49%* * *
Village at East Lake Apartments11,64690.49%* * *
Osprey Ridge Apartments LTD9,287100.39%* * *
TOTAL429,44217.95%* *
1 The City of Clermont had a total metered water flow of approximately 2,392,022,000 gallons for the
12-month period ending September 30, 2013
* Information is not available.
2013 2004
City of Clermont, Florida
Principal Water Customers
Current Year and Nine Years Ago
107
Usage Percentage ofUsage Percentage of
(thousands Total City(thousands Total City
Employer of gallons)RankMetered Flow1 of gallons)RankMetered Flow
South Lake Hospital33,26212.46%* * *
Lake County Schools17,71521.31%* * *
Westminster Comm Care Service16,19131.20%* * *
The Vista at Lost Lake13,53241.00%* * *
Village at East Lake11,64650.86%* * *
Emerald Lakes of Clermont7,49660.56%* * *
City of Clermont7,28570.54%* * *
Mister Car Wash5,44580.40%* * *
Oak Ridge Apartments**4,09390.30%* * *
Liberty Value Place 3,851100.29%* * *
TOTAL120,5168.93%* *
1 The City of Clermont had a total metered water flow for wastewater billing purposes of approximately 1,349,871,000
gallons for the 12-month period ending September 30, 2013
* Information is not available.
** Formerly reported as Empirian Property Management
2013 2004
City of Clermont, Florida
Principal Sewer Customers
Current Year and Nine Years Ago
108
Function 2004 2005 2006 2007
General Government 22.5025.5027.5030.50
Public Safety:
Police
Sworn personnel 34.0038.0045.0051.00
Non sworn personnel 12.0016.0016.0016.00
Fire
Firefighters 19.0022.0038.0045.00
Other personnel 1.00 1.00 2.00 2.00
Physical Environment 7.50 7.5010.0010.00
Transportation 13.2513.2513.7015.20
Human Services 2.25 2.25 2.00 2.00
Culture & Recreation 19.4519.4522.2026.20
Water 22.9023.4025.4026.90
Sewer 25.8025.3026.3027.80
Stormwater 4.65 4.65 7.20 8.70
Sanitation 8.70 8.70 8.7014.70
Total 193.00207.00244.00276.00
Source: City of Clermont Finance Department.
Full-time Equivalent Employees as of September 30,
City of Clermont, Florida
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
109
2008 2009 2010 2011 2012 2013
30.5031.0028.0027.0025.8525.85
53.0053.0057.0057.0057.0057.00
17.0017.0016.00 5.00 5.00 5.00
49.0047.8548.0048.0047.8047.80
2.00 2.00 2.00 2.00 2.00 2.00
10.0011.6510.90 5.40 4.60 4.60
15.6015.6015.3513.5014.8014.80
2.00 0.00 0.00 0.00 0.00 0.00
26.6025.6021.1022.0021.2021.20
29.4029.4029.1529.1529.4529.28
26.3026.3026.0525.8524.5024.34
8.80 8.80 9.15 9.40 7.95 7.78
16.8016.8016.3016.7016.8517.35
287.00285.00279.00261.00257.00257.00
Full-time Equivalent Employees as of September 30,
110
Function 2004 2005 2006 2007
General Government
Municipal boundary (square miles)11.9712.4514.1314.37
Business Tax Receipts issued1,5511,7951,9852,141
A/P Checks issued4,9675,4155,6646,023
Commercial construction (units)24233824
Commercial construction
(value in thousands)14,2727,11517,53424,433
Residential construction (units)1,155673635324
Residential construction
(value in thousands)158,458103,672186,189136,477
Public Safety:
Police
Auto accidents5416716251,192
Physical arrests414500707933
911 calls received5,5806,2627,0086,317
Evidence processed (pieces)1,0541,1271,6101,585
Parking violations8771161140
Traffic violations2,3942,8555,2595,164
Fire
Volunteer firefighters3427279
Fire inspections completed483457625414
Emergency calls answered3,0933,3213,1323,048
Non-emergency calls answered143143189198
Human Services
Animals captured**562445495652
Water
Residential accounts12,75114,28415,73316,394
Commercial accounts8179219931,069
Annual water usage
(thousands of gallons)1,655,2031,788,3372,121,5882,654,352
Sewer
Residential accounts9,21710,17611,12511,554
Commercial accounts7678839551,031
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
111
2008 2009 2010 2011 2012 2013
14.4214.4314.7614.9014.9514.95
2,2631,7711,8331,8432,2372,483
6,4406,0425,7224,8752,3362,288
42 19 10 3 8 20
18,85913,2238,35718,02015,20334,268
301 204 305 151 173 327
56,57856,09253,20223,55825,88253,055
1,272 972 9551,1211,2591,402
842 949 854 699 644 886
6,0466,8285,2305,5875,9116,352
1,3001,6521,3491,2971,4132,930
145 107 137 378 201 252
5,1034,5534,9816,3125,3897,225
810666-
880 9792,121 896 6621,240
3,1773,1553,1123,8223,3203,414
234 434 352 805 934 447
- - - - - -
16,95917,37517,88418,24018,61919,399
1,1561,2011,2061,2101,2071,232
2,589,6642,312,9622,054,2362,275,9362,391,4852,392,022
11,91312,15412,50812,72212,93613,407
1,1201,1581,1581,1671,1661,194
Fiscal Year
112
Function 2004 2005 2006 2007
General Government
Public Safety:
Police
Police stations 1111
Patrol units 34 38 45 45
Fire
Fire department facilities 3333
Staffed fire stations 2223
Fire hydrants 1,200 1,431 1,630 1,896
Fire apparatus 7899
Staffed fire apparatus 2345
ALS non-transport units 3333
Transportation
Streets paved (miles)97.00101.39109.94122.93
Streetlights 1,106 1,131 1,231 1,256
Culture & Recreation
Number of parks 22 22 22 22
Parks acreage 101.5 101.5 349.5 349.5
Scenic linear trail (miles)3.5 5.7 5.7 5.7
Tennis courts 8888
Fishing piers 4444
Boat ramp 1111
Water
Miles of water mains 92.94 97.23104.52115.02
Sewer
Miles of sanitary sewers 41.15 44.26 49.51 56.98
Miles of storm sewers 9.53 10.27 11.13 18.07
Sources: Various government departments.
Fiscal Year
City of Clermont, Florida
Capital Asset Statistics by Function
Last Ten Fiscal Years
113
2008 2009 2010 2011 2012 2013
111111
45 45 45 46 46 55
334444
333333
2,140 2,140 2,012 2,016 2,048 2,120
998788
555555
344444
126.16131.72133.20133.20133.20173.91
1,331 1,331 1,352 1,352 3,103 3,103
22 22 22 23 23 23
349.5 349.5 349.5 349.5 349.5 349.5
5.7 5.7 5.7 5.7 5.7 5.7
999999
444445
111111
115.98122.83124.11197.40242.36243.14
59.40 65.18 66.19132.02156.81160.42
20.88 24.61 26.32 89.80105.38109.05
Fiscal Year
114
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and City Council
City of Clermont, Florida
We have audited, in accordance with auditing standards generally accepted in the United states
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of
the governmental activities, business-type activities, each major fund, and the aggregate
remaining fund information of the City of Clermont, Florida, as of and for the year ended
September 30, 2013, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements and have issued our report thereon dated March
27, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of
Clermont, Florida’s internal control over financial reporting (internal control) to determine the
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of city of Clermont’s internal control. Accordingly, we do not express an opinion
on the effectiveness of the City’s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be preven ted,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies
in internal control over financial reporting that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
MCDIRMIT DAVIS & COMPANY, LLC
934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
115
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Clermont’s financial
statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The result of our
tests disclosed no instances of noncompliance, or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
March 27, 2014
116
MANAGEMENT LETTER
Honorable Mayor and City Council
City of Clermont, Florida
We have audited the financial statements of the City of Clermont, Florida, as of and for the fiscal
year ended September 30, 2013, and have issued our report thereon dated March 27, 2014.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and Chapter
10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor’s Report
on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an
Audit of the Financial Statements Performed in Accordance with Government Auditing
Standards. Disclosures in that report, which is dated March 27, 2014, should be considered in
conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State
of Florida. This letter includes the following information, which is not included in the
aforementioned auditor’s report:
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address significant findings and recommendations made
in the preceding annual financial audit report. See Appendix B to this report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, we determined that the City of Clermont, Florida complied with
Section 218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. See Appendix A
to this report.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address noncompliance
with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to
have occurred, that have an effect on the financial statements that is less than material but
which warrants the attention of those charged with governance. In connection with our audit,
we did not have any such findings.
MCDIRMIT DAVIS & COMPANY, LLC
934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
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Section 10.554(1)(i)5., 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)6.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.
Sections 10.554(1)(i)6.b., Rules of the Auditor General, requires that we determine whether the
annual financial report for the City of Clermont, Florida for the fiscal ended September 30, 2013,
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, 2013. We determined that these two reports are in agreement.
Pursuant to Sections 10.554(1)(i)6.c. and 10.556(7), Rules of the Auditor General, 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.
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the
Florida Auditor General, Federal and other granting agencies, and applicable management, and
is not intended to be and should not be used by anyone other than these specified parties.
March 27, 2014
118
CITY OF CLERMONT, FLORIDA
APPENDIX A - RECOMMENDATIONS TO IMPROVE FINANCIAL MANAGEMENT
Year Ended September 30, 2013
ML13-1- Establishing Minimum Fund Balance Policy
Criteria - It is recommended that local governments determine and establish in their fund balance
policy a desired minimum level of unrestricted fund balance to maintain in their general fund and
other significant governmental funds.
Condition - The City of Clermont currently does not have a minimum fund balance policy for the
general fund or the other significant governmental funds.
Cause - Establishing a minimum fund balance policy is recommended by Governmental
Accounting Standards Board Statement No. 54.
Effect - Not having a minimum fund balance policy could result in overspending.
Recommendation - We recommend that the City of Clermont establish a minimum fund
balance policy based on policies of comparable cities in the State of Florida.
119
12
0
CITY OF CLERMONT, FLORIDA
APPENDIX B - STATUS OF PRIOR YEAR COMMENTS
Year Ended September 30, 2013
No.Prior Year's Observations
Observation
is Still
Relevant
Observation
Addressed or
No Longer
Relevant
ML 12-1Pay Rate Review X
121
122
Honorable Mayor and City Council
City of Clermont, Florida
We have audited the financial statements of City of Clermont as of and for the year ended
September 30, 2013, and have issued our report thereon dated March 27, 2014. Professional
standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated July 14, 2011, our responsibility, as described
by professional standards, is to form and express an opinion(s) about whether the financial
statements that have been prepared by management with your oversight are presented fairly, in
all material respects, in conformity with accounting principles generally accepted in the United
States of America. Our audit of the financial statements does not relieve you or management of
your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are
free of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered
the internal control of City of Clermont solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in
our professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
We have provided our findings regarding significant control deficiencies over financial reporting
and material noncompliance, and other matters noted during our audit in a separate letter to you
dated March 27, 2014.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have
complied with all relevant ethical requirements regarding independence.
MCDIRMIT DAVIS & COMPANY, LLC
934 N MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
123
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A
summary of the significant accounting policies adopted by City of Clermont is included in Note 1
to the financial statements. As described in Note 1 to the financial statements, during the year,
City of Clermont changed accounting policies related to the adoption of Statement of
Governmental Accounting Standards (GASB Statement) No. 62, 63, and 65. No matters have
come to our attention that would require us, under professional standards, to inform you about
(1) the methods used to account for significant unusual transactions and (2) the effect of
significant accounting policies in controversial or emerging areas for which there is a lack of
authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management’s current judgments. Those judgments are
normally based on knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive
because of their significance to the financial statements and because of the possibility that
future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
Management’s estimate for the allowance for doubtful accounts is based on historical loss
levels, and an analysis of the individual accounts. We evaluated the key factors and
assumptions used to develop the allowance in determining that it is reasonable in relation to the
financial statements taken as a whole.
Management’s estimation for the allowance for depreciation is based on the estimated useful
lives of the capital assets. We evaluated the reasonableness of the useful lives as well as the
depreciation methods in determining that it is reasonable in relation to the financial statements
taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly
sensitive because of their significance to financial statement users. The most sensitive
disclosures affecting City of Clermont, Florida’s financial statements relate to revenue
recognition as described in Note 1.
Significant Difficulties Encountered During the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
124
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe 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 matter, whether or not resolved to our satisfaction, concerning a financial accounting,
reporting, or auditing matter, which could be significant to City of Clermont, Florida’s financial
statements or the auditor’s report. No such disagreements arose during the course of the
audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
attached letter dated March 27, 2014.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with City of Clermont, Florida , we generally
discuss a variety of matters, including the application of accounting principles and auditing
standards, operating and regulatory conditions affecting the entity, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed
resulted in a condition to our retention as City of Clermont, Florida’s auditors
This report 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 27, 2014
125
126