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Comprehensive Annual Financial Report - 2004-2005mob-- --.- City of Clermont, Florida For The Year Ended September 30, 2005 Prepared by: Administrative Services Department This page intentionally left blank. 04 CITY OF CLERMONT Year Ended September 30, 2005 I. Introductory Section: Table of Contents Letter of Transmittal GFOA Certificate of Achievement List of Principal Officials Organizational Chart II. Financial Section: Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — Infrastructure Special Revenue Fund Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows — Proprietary Funds Statement of Fiduciary Net Assets - Fiduciary Funds Statement of Changes in Fiduciary Net Assets - Fiduciary Funds Notes to Financial Statements 1-2 3-14 15 16 17 18 19 20 21 22-23 24 25-26 27 28 29-52 CITY OF CLERMONT Year Ended September 30, 2005 IV. Other Reports: Report on Compliance and on Intemal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 91-92 Page II. Financial Section - Continued: Nonmajor Governmental Funds: Combining Balance Sheet — Nonmajor Governmental Funds 53-54 Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds 55-56 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual: Special Revenue Funds 57-60 Debt Service Fund 61 Capital Project Fund 62 Fiduciary Funds: Combining Statement of Fiduciary Net Assets 63 Combining Statement of Changes in Fiduciary Net Assets 64 Capital Assets Used in the Operation of Governmental Funds: Schedule by Function and Activity 65 III. Statistical Section: General Governmental Expenditures by Function 66-67 General Governmental Revenues by Source 68-69 General Governmental Expenditures by Function 70-71 General Governmental Revenue by Source 72-73 Property Tax Levies, Tax Collections and Assessed Valuations 74-75 Property Tax Rates — Direct and All Overlapping Governments 76-77 Computation of Direct and Overlapping General Obligation Debt 78 Demographic Statistics 79 Property Value, Construction, and Bank Deposits 80-81 Water and Sewer Customer Data 82 Principal Taxpayers 83 Miscellaneous Statistical Data 84-85 Utility Revenue Bond Coverage - All Utility Revenue Bonds 86-87 Largest Employers 88 Schedule of Insurance Coverages 89-90 IV. Other Reports: Report on Compliance and on Intemal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 91-92 00 pit PEO PW �&Vo 04 Ono Ono on$ Ono 0, on$ No# 04 moo F" moo owl 00[l NOR 04 ww' ww� CITY OF CLERMONT February 15, 2006 Office of the City Manager To the Honorable Mayor and City Council and Citizens of the City of Clermont, Florida: 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, 2005. 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. OR The City of Clermont's financial statements have been audited by McDirmit Davis & Company, Mal LLC, a firm of licensed certified public accountants. The goal of the independent audit was to pal provide reasonable assurance that the financial statements of the City of Clermont for the fiscal year ended September, 30, 2005, are free of material misstatement. The independent audit W" involved examining, on a test basis, evidence supporting the amounts and disclosures in the 04 financial statements; assessing the accounting principles used and significant estimates made 0d% 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 ado unqualified opinion that the City of Clermont's financial statements for the fiscal year ended od% September 30, 2005, 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 00 first component of the financial section of this report. W" 1014 Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial Id[4 statements. The MD&A provides "financial highlights" and interprets the financial reports by moo analyzing trends and by explaining changes, fluctuations and variances in the financial data. In 0014 addition, the MD&A is intended to disclose any known significant events or decisions that affect the financial condition of the City. This letter of transmittal is designed to complement the MD&A dA and should be read in conjunction with it. 004 P.O. BOX 120219 • CLERMONT, FLORIDA 34712-0219 • PHONE: 352/394-4081 FAX: 352/394-1452 Profile of the Government The City was founded in 1884 and incorporated in 1916. The City currently has a land area of 12.45 square miles and a population of approximately 20,017. The City is located in south Lake County, approximately twenty-two miles west of the City of Orlando and about twenty-five miles northwest of Walt Disney World. Clermont, known as "The Gem of the Hills", is truly the crossroads of Florida, at the intersection of State Road 50 that runs east and west across the state and U.S. Highway 27, which runs north and south through the center of the state. Clermont is on a chain of 15 lakes connected by the winding Palatlakaha River in the Ocklawaha Basin of tributaries of the St. Johns River, the only river system in the United States of America that flows north. The lakes offer residents the opportunity for excellent fishing, boating, swimming and other water sports including competitive skiing and wakeboarding offered by world-class instructional schools. The City of Clermont is known for its scenic beauty, relaxed lifestyle, recreational facilities and temperate climate. Residents have a wide variety of housing and property ownership opportunities, including lakefront and lake access property, golf course communities, homes in existing neighborhoods, residential retirement communities and new subdivisions. The City of Clermont Parks and Recreation Department operates 22 parks, 3.5 miles of scenic paved trail, 4 fishing piers and a boat ramp. Clermont is home to the USA Triathlon National Training Center. This training center, which is part of South Lake Hospital, is a place where local residents and national and international athletes of all levels can pursue their individual health, wellness and fitness goals. Clermont is proud to be known internationally for hosting many triathlon events. 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, animal/mosquito control, recreational facilities and programs, cemetery and general administrative functions. The City also operates and maintains water, wastewater treatment, stormwater and sanitation utilities. The Clermont Police Department is proud to be recognized by The Commission on Accreditation for Law Enforcement Agencies as a state accredited agency. The Clermont Fire Department has evolved from a volunteer fire department in 1999 to its current status of 71 personnel positions, which include 20 full-time personnel. Advanced Life Support emergency medical service was implemented in 2001 and there are currently 3 Advanced Life Support units running out of two fire stations. The City's Utilities Department provides potable water service, wastewater collection and treatment services and reclaimed water production and distribution services to our utility customers. Both the Utility and Engineering Departments were selected by the Central Florida Section of the Society of Women Engineers as the Public Organization of the Year. This award was based on five areas: engineering projects benefiting the public, employees active in professional organizations, community involvement, promoting education and programs to respond to citizens concerns. The City operates according to a Council/Manager form of government, with an appointed City Manager, four elected City Council members and a separately elected Mayor. The governing body is responsible, among other things, for 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 heads of the various departments. The annual budget serves as the foundation for the City of Clermont's financial planning and control. All departments of the City of Clermont are required to submit requests for appropriation 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 iv Iu p� 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 on department (e.g., fire department). The City Manager may make transfers of appropriations In within departments, however, any revisions that alter the total appropriations of a department must be approved by City Council. Original and final amended budget -to -actual comparisons are provided in this report for each individual governmental fund. The General Fund is presented on page 20 and the Infrastructure Special Revenue Fund is presented on page 21 as part of the basic financial statements for the governmental funds. For other governmental funds these comparisons are presented in the governmental fund subsection of this report, which starts on page 57. Factors Affecting Financial Condition 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. N" Local Economy. The City of Clermont is essentially residential in character and its economy is sdl� primarily centered in retail trade as well as lodging, food and beverage establishments, which are tourism oriented. The City's total assessed valuation for real and personal property increased on 30.9% from the previous year. The expanding tax base has provided increased revenue enabling pa the City to fund necessary projects and personnel needed to maintain the adopted levels of d service while maintaining a property tax rate of 3.729 mills. This rate has remained the same for the past five years and is one of the lowest in Central Florida. The economic outlook for the City is positive. The coming year should be similar to the past year unless we experience a major national economic change that would affect the construction industry or current business r� expansion trends. 01-� Cash management policies and practices. The City administers a cash management and am 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 a combined to form a pool of cash and investments. The average cash and investment pool dr balance during the year (not including pension funds) was $47,446,784 and the average 011� investment earnings rate was 1.9%. Investment income includes the change in the fair value of investments. During the year monies were invested in Federal Instrumentalities and the State per! Board Administration Local Government Investment Pool in accordance with the City's Investment Policy. Pension fund assets were invested mainly in mutual funds in accordance with the City's Investment Policy for Retirement Funds. The average total pension fund assets during Ism the year were $7,895,440 and the average investment income was 7.6% due to an increase in the fair value of investments. dA Risk Management. During the ordinary course of its operations, the City is exposed to various PON& risks of losses. The City maintains commercial insurance coverage in amounts management e�* feels is adequate to protect and safeguard the assets of the City. In the opinion of the City's legal counsel, legal claims and litigation are not anticipated to have a material impact on the financial position of the City. 011� The City of Clermont maintains a healthcare self-insurance program which was established 011� during fiscal year 1990 for the payment of employee health and dental claims. The program provides for the payment of City and employee contributions into a self-insurance fund, which is 0* managed by the City, a third party administrator, and a local insurance agent. The City's specific stop loss coverage provides that claims in excess of $40,000, up to a maximum of $1,000,000 per covered individual per year, are paid by the reinsurer. Additional information on the City's risk d management can be found in the notes to the financial statements on page 50. v Pension and other postretirement benefits. The City of Clermont sponsors three single - employer defined benefit pension plans and a defined contribution plan for its employees. Each year, an independent actuary engaged by the pension plan calculates the amount of the Annual Required Contribution that the City of Clermont must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. In addition, police officers are required to contribute 3% of their salary, firefighters are required to contribute 1% of their salary to the plan and the State contributes funds collected from insurance premium excise taxes. General employees do not contribute to the plan. The City of Clermont also provides postretirement health and dental care benefits for retirees and their dependents. At the end of the current fiscal year, there were 4 retired employees receiving these benefits. The cost of the premiums is paid totally by the retirees. 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, 2004. This was the seventeenth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the staffs in the City Manager's office, Planning Department and Administrative Services Department. We would like to express our appreciation to all members of these departments who assisted and contributed to the preparation of this report. A special note of appreciation is due Lisa Strickland, Accountant for her 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 unfailing support for maintaining the highest standards of professionalism in the management of the City of Clermont's finances. Respectfully submitted, Waylle aunders City IN4&iager .-") J eph Van Zile dministrative e s Director oil me. Mil 0 Mr 0 POP on ow FW pa pe on PW oft on PM oft pa OR MA Certificate of Achievement for Excellence in Financial Reporting Presented to City of Clermont, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. E Wit STA AA1gN President Sad0s^ Spar• Executive Director vii CITY OF CLERMONT, FLORIDA LIST OF ELECTED AND APPOINTED OFFICIALS SEPTEMBER 30, 2005 ELECTED OFFICIALS Mayor Harold Turville, Jr. Mayor Pro -Tem Keith Mullins Council Member Ray Goodgame Council Member Gail Ash Council Member Elaine Renick APPOINTED OFFICIALS City Manager Wayne Saunders City Attorney Dan Mantzaris Administrative Services Director Joseph Van Zile Public Services Director Preston Davis Chief of Police Stephen Graham Fire Chief Carle Bishop Utility Director/City Engineer Tamara Richardson Planning Director James Hitt City Clerk Tracy Ackroyd City of Clermont, Florida Organizational Chart I Citizens I City Attorney Clermont City Council Committees Recreation H er City Manager Assistant I I City Manager Police I Fire I Public Services I I Administrative ! Planning I I Utilities/ Services Engineering Criminal Investigations Fire Suppression Transportation Traffic Enforcement Special Operations Parks Road Patrol Emergency Medical Animal/Mosquito Services Control Communications Fire Inspections and Fleet Maintenance Prevention Community Relations Public Education Stormwater Drainage Volunteer and Reserve Program Financial Reporting Permitting Inspections Utility Billing Code Enforcement Mapping Accounts Payable Zoning Water System Improvements Personnel/Payroll Wastewater System Improvements Risk Management Stormwater Management Water Treatment and Distribution Sewer Collection and Treatment Reclaimed Water Water Conservation Sanitation Budgeting Information Facility Maintenance Technology ix City Clerk Records Management Occupational Licenses Website Management This page intentionally left blank. Af 00 go we we 04 oft ON ON we me we rl� r� wo in No is is Ili MCDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Clermont, Florida Clermont, Florida We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Clermont, Florida, as of and for the year ended September 30, 2005, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Clermont, Florida, as of September 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparisons for the general fund and the infrastructure special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. MCDIRMIT DAVIS & COMPANY, LLC 605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32801 TELEPHONE 407-843-5406 • FAx 407-649-9339 • EMAIL: INFO l7 MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION • AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS In accordance with Government Auditing Standards, we have also issued a report dated December 21, 2005 on our consideration of the City of Clermont, Florida's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and 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 result of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management's Discussion and Analysis starting on page 3 is not a required part of the basic financial statements but is supplemental information required by the accounting principals generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Clermont's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. December 21, 2005 K, 04) No 00 MANAGEMENT'S DISCUSSION AND ANALYSIS me 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, 2005. 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 vi of this report. Financial Highlights • The City of Clermont's assets exceeded its liabilities at September 30, 2005 by $78,112,332 (net assets). Of this amount, $21,538,549 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net assets increased by $13,854,942 (or 21.5%) over the previous fiscal year. • At September 30, the City of Clermont's governmental funds reported combined ending fund balances of $12,993,461, an increase of $4,314,281 over the previous fiscal year. Most of this total amount is available for spending at the government's discretion (unreserved fund balance). • The General Fund, the City's primary operating fund, reported an unreserved fund balance of $5,757,841, which represents 48% of total general fund expenditures. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Clermont's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Clermont's financial position, in a manner similar to a private -sector business. They include a Statement of Net Assets and a Statement of Activities. These statements appear on pages 15 and 16 of the report. The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in M future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). 3 MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED Both of the government -wide financial statements distinguish functions of the City of Clermont that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Clermont include general government, public safety, physical environment, transportation, economic environment, human services, and culture and recreation. The business -type activities of the City of Clermont include water, sewer, sanitation, and stormwater utilities. The government -wide financial statements include only the City of Clermont itself (known as the primary government) and one blended component unit (The City of Clermont Community Redevelopment Trust Fund). Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Clermont, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of Clermont can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Clermont maintains nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, and the Infrastructure Fund, both of which are considered to be major funds. Data from the other seven governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Clermont adopts an annual appropriated budget for all of its governmental funds. Budgetary comparison statements have been provided for the General Fund to demonstrate compliance with this budget at page 20. Budgetary comparison schedules have been provided for the Infrastructure Fund and the nonmajor funds at pages 21 and 57-62. The basic governmental fund financial statements can be found on pages 17 - 21 of this report. W 00 00 per, MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED 00 Proprietary funds. The City of Clermont maintains two types of proprietary funds: enterprise and 0M intemal service, which can be found on pages 22-26 of this report. 00 Enterprise funds are used to report the same functions presented as business -type activities in the 0M government -wide financial statements. The City of Clermont uses enterprise funds to account for WL 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 go service fund for its health insurance. Because services accounted for in the internal service fund 00 predominately benefit governmental rather than business -type functions, it has been included 00 within the govemmental activities in the government -wide financial statements. on Proprietary funds provide the same type of information as the government -wide financial 00 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 OR Stormwater Fund is also included since it is the only non major fund. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City of Clermont's own programs. The accounting used for fiduciary funds is much like that used for the proprietary funds. The basic fiduciary fund financial statements can be found on pages 27 - 28 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. M The notes to financial statements can be found on pages 29 - 52 of this report. 0" Other information. The combining statements referred to earlier in connection with nonmajor 04 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 53 - 65 of this report. Government -Wide Financial Analysis The following is a summary of the City's net assets for governmental and business -type activities for the current year as compared to the prior year. For more detail see the Statement of Net Assets on page 15. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED CITY OF CLERMONT'S Net Assets Liabilities: Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, Net of related debt Restricted Unrestricted Total net assets 7,140,195 7,854,119 17,257,343 17,318,778 24,397,538 25,172,897 563,131 609,329 1,143,760 1,328,585 1,706,891 1,937,914 7,703,326 8,463,448 18,401,103 18,647,363 26,104,429 27,110,811 12,118,268 10,959,108 12,082,297 12,054,471 24,200,565 23,013,579 4,799,779 3,120,830 27,573,439 22,601,007 32,373,218 25,721,837 8,124,628 5,619,304 13,413,921 . 9,902,670 21,538,549 15,521,974 The City's total net assets at September 30, 2005 was $78,112,332. Of the City's total net assets $24,200,565 (31%) reflects its investment in capital assets (e.g., land, buildings, improvements, infrastructure and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Clermont's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's total net assets, $32,373,218 (41%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City's total net assets, $21,538,549 (28%) is unrestricted. These assets may be used at the City's discretion in meeting its ongoing obligations to citizens and creditors. The City's net assets increased by $13,854,942 during the current fiscal year. Both restricted and unrestricted net assets grew almost equally to comprise this total increase. Restricted reserves represent the accumulation of impact fee funds for upcoming capital projects. Unrestricted reserves represent increases in investment cash in both governmental funds and utility funds. The increase is due to actual revenues exceeding anticipated revenues, which is the result of growth in both the City's tax base and utility customer base. The following is a summary of the City's governmental and business -type activities for fiscal year 2004-05, including revenues and expenses, with a comparison to the prior year. For more detail see the Statement of Activities on page 16. M Governmental Activities Business -type Activities Total 2004-05 2003-04 2004-05 2003-04 2004-05 2003-04 Assets: Current and other assets $ 13,843,039 $ 9,564,313 $ 42,131,120 $ 33,832,262 $ 55,974,159 $ 43,396,575 Capital assets 18.902.962 18.598.377 29,339.640 29.373,249 48.242.602 47.971.626 Total assets 32,746.001 28.162,690 71,470.760 63.205.511 104.216.761 91.368.201 Liabilities: Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, Net of related debt Restricted Unrestricted Total net assets 7,140,195 7,854,119 17,257,343 17,318,778 24,397,538 25,172,897 563,131 609,329 1,143,760 1,328,585 1,706,891 1,937,914 7,703,326 8,463,448 18,401,103 18,647,363 26,104,429 27,110,811 12,118,268 10,959,108 12,082,297 12,054,471 24,200,565 23,013,579 4,799,779 3,120,830 27,573,439 22,601,007 32,373,218 25,721,837 8,124,628 5,619,304 13,413,921 . 9,902,670 21,538,549 15,521,974 The City's total net assets at September 30, 2005 was $78,112,332. Of the City's total net assets $24,200,565 (31%) reflects its investment in capital assets (e.g., land, buildings, improvements, infrastructure and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Clermont's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's total net assets, $32,373,218 (41%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City's total net assets, $21,538,549 (28%) is unrestricted. These assets may be used at the City's discretion in meeting its ongoing obligations to citizens and creditors. The City's net assets increased by $13,854,942 during the current fiscal year. Both restricted and unrestricted net assets grew almost equally to comprise this total increase. Restricted reserves represent the accumulation of impact fee funds for upcoming capital projects. Unrestricted reserves represent increases in investment cash in both governmental funds and utility funds. The increase is due to actual revenues exceeding anticipated revenues, which is the result of growth in both the City's tax base and utility customer base. The following is a summary of the City's governmental and business -type activities for fiscal year 2004-05, including revenues and expenses, with a comparison to the prior year. For more detail see the Statement of Activities on page 16. M MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED Revenues: Program revenues Charges for services Operating grants and contributions Capital grants and contributions General revenues - Property Taxes Franchise and utility taxes Intergovernmental Investment income and miscellaneous Gain on sale of capital assets Total revenues Expenses: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Interest on long-term debt Water Sewer Sanitation Stormwater Total expenses Increase (Decrease) in Net Assets Before Transfers Transfers Increase in Net Assets Net Assets - Beginning Net Assets - Ending CITY OF CLERMONT'S Changes in Net Assets Governmental Activities Business -type Activities Total 2004-05 2003-04 2004-05 2003-04 2004-05 2003-04 $ 2,453,764 $ 3,029,359 $ 10,329,231 $ 9,555,497 $ 12,782,995 $ 12,584,856 511,853 591,189 138,500 104,798 650,353 695,987 1,643,898 - 6,287,105 7,095,189 7,966,157 7,095,189 4,416,962 3,371,172 - 4,416,962 3,371,172 3,973,884 3,420,112 - - 3,973,884 3,420,112 2,857,999 2,369,020 2,822,845 2,369,020 326,486 185,620 824,99E 389,456 1,151,482 575,076 854,233 - - - 854,233 _._. 12,778 17,039,079 12,966,472 17,579,832 17,144,940 34,618,911 30,111,412 2,617,095 2,336,912 - - 2,617,095 2,336,912 5,772,697 4,687,907 - 5,772,697 4,687,907 278,063 421,297 278,063 421,297 1,172,233 1,055,914 - - 1,172,233 1,055,914 12,778 31,791 - - 12,778 31,791 148,994 131,633 - 148,994 131,633 1,816,477 1,742,527 1,816,477 1,742,527 254,725 350,146 - - 254,725 350,146 - - 3,015,322 2,707,082 3,015,322 2,707,082 - 3,572,120 3,423,209 3,572,120 3,423,209 - 1,816,868 1,616,487 1,816,868 1,616,487 286,597 265,645 286,597 265,645 12,073,062 10,758,127 8,690,907 8,012,423 20,763,969 18,770,550 4,966,017 2,208,345 8,888,925 9,132,517 13,854,942 11,340,862 377,416 384,944 (377,416) (384,944) - 5,343,433 2,593,289 8,511,509 8,747,573 13,854,942 11,340,862 19,699,242 17,105,953 44,558,148 35,810,575 64,257,390 52,916,528 $ 64,257,390 $ $ 332 $ 25 042 675 S19,69%242 7 $ 53,069,657 44,558,148 78 112 MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED Governmental activities - Governmental activities increased the City of Clermont's net assets by $5,343,433. Key elements of this increase are as follows: • Property tax revenue increased by $1,045,790 (31.0%) during the year. Franchise fee revenue increased $229,501 (20.4%) and utility tax revenue increased $324,271 (14.1%). These increases are the result of growth and not a change in the City's tax rate structure. ® Capital grants for governmental activities increased by $1,643,898. This was money received from Lake County for the reimbursement of the construction of Oakley Seaver Blvd. • Charges for services decreased primarily due to slower collections of recreation, police and fire impact fees. Growth is still occurring, but the pace of residential construction has slowed from fiscal year 2003-04. • Increases in expenses closely paralleled inflation and growth in the demand for services. The most significant increase can be observed in the public safety category. The majority of this increase is additional personnel in both the police and fire departments. The following graph is a comparison of program revenues and program expenses for all governmental activities. This chart is intended to give the reader an idea of the degree to which governmental activities are self-supporting. Expenses and Program Revenues - Governmental Activities $6,000,000- $5,000,000 $4.000,000 = $3,000,000 I--." $Z$i 7,095 $2,000.000 1,11n,a�� $1 $0 $1,172A3� j ,072,735 I ■ ,001 $439,835 $254.725 General government Public safety Transportation Pu blic Culture and recreation Physical environment Interest on long-term works and other debt ❑Expenses Program revenues I 00 ado OR 09 NOR M" we 04 14 00 04 WIN oil 04 we 001 Mal wal No No MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED The following pie chart illustrates the composition of governmental activities revenue and its percent in relation to total governmental activities revenues. Revenues by Source - Governmental Activities ❑ Intergovernment ® Charges for services ❑ Operating grants and contributions ❑ Capital grants and contributions 1:1Investment income & miscellaneous 11Other taxes Property taxes ❑ Sale of capital assets Property taxe 26% Sale of capital assets 5% Intergovernment uuiei td b 23% Charges for services 14% Operating grants and contributions 3% 1 grants and contributions 10% Investment income & miscellaneous 2% Business -type activities - Business -type activities increased the City of Clermont's net assets by $8,511,509. Key elements of this increase are as follows: • Charges for services for business -type activities increased by $773,734 (8.1%), primarily due to increase in demand. • Capital contributions totaled $6,287,105. These contributions are water and sewer impact fees paid by developers. Although this total was a decrease of $808,084 from the previous fiscal year, this amount contributes to the majority of the increase in net assets. 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 accumulating this revenue for large capital projects such as the Sunburst Lane and Greater Hills Water Treatment Plants and a Water Reclamation Plant. • Grant revenue ($114,000) was realized for the Center Lake Stormwater project. I MANAGEMENT'S DISCUSSION AND ANALYSIS — CONTINUED The following graph is a comparison of program revenues and program expenses for all business - type activities. This chart is intended to give the reader an idea of the degree to which business - type activities are self-supporting. Expenses and Program Revenues - Business -Type Activities $9,000,000— $8,000,000-' 9,000,000 $8,000,000-' ' $7,000,000-1' / $s,000,000,� 55,980,1,46 I J -- $5,000,000,1 $3,572,1 $4,000,000-i S3.D15 $3,000,000--'� $2,000,000 $1,000,000 F . $8,454,113 $1,816,868 52,091-895 -$74"22--- $206,597 Water Sewer Sanitation Stormwater IN Expenses eProgram Revenue The following pie chart illustrates the composition of business -type activities revenue and its percent in relation to total business -type activities revenues. Revenues by Source - Business -type Activities ❑ Investment income & miscellaneous ® Operating grants and contributions 13 Charges for Services OCapital Grants and Contributions Investment income & miscellaneous 5% Operating grants and contributions F� 1% Capital Grants and Contributions 36% 10 Charges for Services 58% MANAGEMENT'S DISCUSSION AND ANALYSIS — CONTINUED Financial Analysis of the City's Funds As noted earlier, the City of Clermont uses fund accounting to ensure and demonstrate compliance with finance -related requirements. Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Clermont's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of September 30, 2005, the City of Clermont's governmental funds reported combined ending fund balances of $12,993,461, an increase of $4,314,281 in comparison with the prior year. Of the governmental funds combined ending fund balances, $11,712,402 (90%) represents unreserved fund balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved to indicate that it is not available for spending because it has already been committed for debt service, inventories and prepaid expenses, or it is being held in a non -expendable trust fund. The general fund is the chief operating fund of the City of Clermont. As of September 30, 2005, the fund balance in the General Fund was $5,956,128, an increase of $1,581,057 in comparison with the prior year. Of the total fund balance in the General Fund, $5,757,841 (97%) was unreserved fund balance. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 48% of total general fund expenditures, while total fund balance represents 49% of that same amount. This increase to fund balance is primarily because actual revenues were higher than budgeted and expenditures were less than budgeted. The City also has an Infrastructure Special Revenue Fund that is considered a major fund under criteria set forth by GASB Statement #34. This fund is used to account for the City's share of the Local Government Infrastructure Surtax. The surtax, which represents a countywide one - cent increase in the state sales tax, was authorized for an additional fifteen years by the voters of Lake County in November, 2001. The surtax may only be used for infrastructure projects or public safety equipment with a useful life in excess of five years or on debt issued to finance the above. During fiscal year 2004-05, the fund balance of the infrastructure fund increased by $1,054,275. This increase is due to intergovernmental revenue being higher than anticipated. Expenditures were also less than budgeted because some projects were carried forward into fiscal year 2005-06. The City is accumulating money in this fund for the future purchase of recreation land and the construction of a community center. The remainder of the increase to the governmental fund balance was from the non -major government funds. Recreation, police and fire impact fee fund balances combined increased a total of $562,967. The capital projects fund balance increased by $926,750. This increase was revenue from the sale of the City's old city hall building. These funds are to be used for the construction of a new community center. 11 MANAGEMENT'S DISCUSSION AND ANALYSIS — CONTINUED Proprietary Funds. Proprietary Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City's major proprietary funds are water, sewer and sanitation. As of September 30, 2005, the City of Clermont's proprietary funds reported total net assets of $53,069,657, an increase of $8,511,509 in comparison with the prior year. Of the proprietary funds total net assets, $13,247,380 (25%) represents unrestricted net assets. Restricted assets of $27,573,439 (52%) are reserved for capital improvements. The Water Fund accounts for the provision of potable water service to City and non -City residents. All activities necessary to the provision of these services are accounted for in this fund, including, but not limited to administration, plant and line maintenance. As of September, 30, 2005, the City of Clermont's water fund reported total net assets of $17,337,944, an increase of $2,332,110 (15.5%) in comparison with the prior year. This increase is primarily due to servicing an expanded customer base. The residential customer base has increased from 12,751 customers in September 2004 to 15,205 as of September 2005. Nearly 70% of the increase in net assets was operating income. The remainder was from impact fee collections that are accumulating for large capital projects that will expand our current water system. The Sewer Fund accounts for the provision of sewer services to City and non -City residents. All activities necessary to the provision of these services are accounted for in this fund, including, but not limited to administration, plant and line maintenance. As of September 30, 2005, the City of Clermont's sewer fund reported total net assets of $31,610,075, an increase of $5,317,145 in comparison with the prior year. This increase is primarily due to impact fee collections. Much of the money collected for impact fees is accumulating for large capital projects that will expand our current sewer system. The remainder of the increase is due to servicing an expanded customer base. The residential customer base has increased from 9,217 customers in September 2004 to 11,059 in September 2005. 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, 2005, the City of Clermont's sanitation fund reported total net assets of $1,273,399, an increase of $291,820 in comparison with the prior year. This was primarily due to capital equipment purchases that were carried forward to fiscal year 2005-06. General Fund Budgetary Highlights Differences between the original budget and the final amended budget can be briefly summarized as follows: • As mentioned above in the governmental activity discussion, property tax revenue, franchise fee revenue and utility tax revenue increased significantly. These increases are the result of growth and not a change in the City's tax rate structure. Intergovernmental revenues, primarily half cent sales tax and state revenue sharing were higher than originally anticipated. Also included in this revenue was reimbursement from FEMA and the state for expenses incurred related to the hurricanes in August and September 2004. 12 MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED • General government expenditures were less than anticipated because of staff vacancies, the old Cooper Library restoration that was carried forward to fiscal year 2005-06 and transportation master plan that was not completed. • Culture and recreation expenditures were less than budgeted primarily due to staff vacancies. During the year, actual revenues were $1,352,117 more than budgeted revenue and actual expenditures were $707,332 less than budgeted expenditures. Capital Assets The following is a summary of the City of Clermont's capital assets, net of depreciation for governmental and business -type activities for the current year with a comparison to the prior year. Additional information on the City of Clermont's capital assets can be found in Note 6 on pages 42 - 43 of this report. CITY OF CLERMONT'S Capital Assets (net of depreciation) The City of Clermont's investment in capital assets for its governmental and business -type activities as of September 30, 2005, amounts to $48,242,602 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements/infrastructure, and machinery and equipment. The total increase in the City's investment in capital assets for the current fiscal year was $270,976 (0.6%). Major capital asset events during the current fiscal year included the following: • Land was acquired adjacent to Fire Station No. 1 for future expansion and parking needs. • Infrastructure improvements increased in governmental activities with the completion of a new road, Oakley Seaver Blvd. The total cost of this project was $1,813,402. • Infrastructure improvements increased in business -type activities with the completion of Center Lake stormwater improvements ($248,122) and Sunburst Lane water well ($2,096,014). • Construction in progress includes the expansion of Fire Station No. 2, rehab of sewer Lift Station E-9, Bloxam Ave. and Downtown Clermont stormwater improvements and the Sunburst Lane water treatment plant expansion. 13 Governmental Activities Business -type Activities Total 2004-05 2003-04 2004-05 2003-04 2004-05 2003-04 Land $ 4,380,524 $ 4,274,427 $ 1,464,129 $ 1,464,129 $ 5,844,653 $ 5,738,556 Buildings 5,780,569 6,372,786 1,739 3,681 5,782,308 6,376,467 Improvements/ 5,857,817 4,974,043 26,663,943 25,113,699 32,521,760 30,087,742 Infrastructure Machinery and Equipment 2,876,402 2,977,121 640,618 728,111 3,517,020 3,705,232 Construction in progress 7.650 - 569.211 2.063.629 576.861 2.063.629 Total $ 18,902,962 18,598,377 5_29332-M $ 29,373,249 $ 48,242-602 $ 47 971 626 The City of Clermont's investment in capital assets for its governmental and business -type activities as of September 30, 2005, amounts to $48,242,602 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements/infrastructure, and machinery and equipment. The total increase in the City's investment in capital assets for the current fiscal year was $270,976 (0.6%). Major capital asset events during the current fiscal year included the following: • Land was acquired adjacent to Fire Station No. 1 for future expansion and parking needs. • Infrastructure improvements increased in governmental activities with the completion of a new road, Oakley Seaver Blvd. The total cost of this project was $1,813,402. • Infrastructure improvements increased in business -type activities with the completion of Center Lake stormwater improvements ($248,122) and Sunburst Lane water well ($2,096,014). • Construction in progress includes the expansion of Fire Station No. 2, rehab of sewer Lift Station E-9, Bloxam Ave. and Downtown Clermont stormwater improvements and the Sunburst Lane water treatment plant expansion. 13 MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED MMW Debt Administration The following is a summary of the City's long-term debt for governmental and business -type activity for the current year with a comparison to the prior year. Additional information on long- term debt can be found in Note 7 on pages 44 - 46 of this report. CITY OF CLERMONT'S Outstanding Debt gap Governmental Activities Business -type Activities Total VW 2004-05 2003-04 2004-05 2003-04 2004-05 2003-04 NW Revenue bonds payable $ 6,180,000 $ 6,575,000 $ 17,835,000 $ 17,935,000 $ 24,015,000 $ 24,510,000 900 Notes payable 604,694 1.064.269 - - 604.694 1,064.269 ro Total $ 6 784 694 3 7 639 269 17 835 000 $ 17,935,000 $ 24,619 694 25 574 69 SION ro At the end of the current fiscal year, the City of Clermont had total debt outstanding of iW $24,619,694. This debt includes revenue bonds payable and notes payable. The City of VW Clermont did not issue any new debt during fiscal year 2004-05. mom Economic Factors and Next Year's Budgets and Rates Pon Wo • The annual unemployment rate for Lake County in 2005 was 3.8%, which is a decrease #no from a rate of 4.0% in 2004. This compares favorably to the state's average of 3.9% and the national average rate of 5.1 %. • The taxable value of commercial and residential property increased 28.6% from fiscal year 2004-05 to fiscal year 2005-06. vow • Population increased 13.4% from 17,654 in 2004 to 20,017 in 2005. Based on the vow state's 2004 population estimates, Clermont has become the largest city in Lake County. Illy As of September 30, 2005, the General Fund unreserved fund balance was $5,757,841. The POO City did not appropriate any of this amount for spending in the 2005-06 fiscal year budget. No P-00tax increases were proposed for the general fund for the 2005-06 fiscal year budget. Wo No utility rate adjustments were proposed for the 2005-06 fiscal year with the exception of the Now sewer rate structure. The sewer rates increased 2.17% on October 1, 2005 pursuant to a required adjustment in accordance with the Florida Public Service Commission Annual Deflator Index previously adopted by the Clermont City Council. Requests for Information This financial report is designed to provide a general overview of the City of Clermont's finances for all those with an interest in the government's finances. Questions concerning any of the information should be addressed to the office of the Administrative Services Director, City of Clermont, P.O. Box 120219, Clermont, Florida 34712. 14 '� GOVERNMENT -WIDE FINANCIAL STATEMENTS This page intentionally left blank. CITY OF CLERMONT, FLORIDA STATEMENT OF NET ASSETS September 30, 2005 Assets: Cash and cash equivalents Investments Receivables, net Inventories and prepaid costs Due from other governments Internal balances Prepaid costs Restricted assets: Cash and cash equivalents Investments Interest receivable Bond issuance costs Capital assets not being depreciated Capital assets being depreciated, net of accumulated depreciation Total assets Liabilities: Accounts payable and other current liabilities Liabilities payable from restricted assets Noncurrent liabilities: Due within one year Due in more than one year Total liabilities Net Assets: Invested in capital assets, net of related debt Restricted for: Capital improvements Community redevelopment Debt service Perpetual care-nonexpendable Unrestricted Total Net Assets Primary Government Governmental Business -type 239,246 Activities Activites Total 493,870 - 493,870 8,124,628 $ 2,179,964 $ 1,084,347 $ 3,264,311 10,728,752 11,011,015 21,739,767 63,418 997,357 1,060,775 24,930 18,177 43,107 839,159 - 839,159 (166,541) 166,541 - 173,357 78,992 252,349 - 1,093,216 1,093,216 - 27,250,258 27,250,258 - 94,476 94,476 - 336,741 336,741 4,388,174 2,033,340 6,421,514 14,514,788 27,306,300 41,821,088 32,746,001 71,470,760 104,216,761 563,131 618,202 1,181,333 - 525,558 525,558 857,562 150,000 1,007,562 6,282,633 17,107,343 23,389,976 7,703,326 18,401,103 26,104,429 12,118,268 12,082,297 24,200,565 3,717,007 27,573,439 31,290,446 239,246 - 239,246 349,656 - 349,656 493,870 - 493,870 8,124,628 13,413,921 21,538,549 $ 25,042,675 $ 53,069,657 $ 78,112,332 The accompanying Notes to Financial Statements are an integral part of these statements. 15 Functions/Programs Governmental activities: General government Public safety Physical environment Transportation/public works Economic environment Human services Culture and recreation Interest on long-term debt Total governmental activities Business -type activities: Water Sewer Sanitation Stormwater Total business -type activities Total primary government CITY OF CLERMONT, FLORIDA STATEMENT OF ACTIVITIES For The Year Ended September 30, 2005 General revenues: Property taxes Franchise fees and utility taxes Intergovernmental - unrestricted Investment income and miscellaneous Gain on sale of capital assets Transfers Total general revenues and transfers Change in net assets Net assets, beginning Net assets, ending 4,416,962 - 4,416,962 3,973,884 Net (Expense) Revenue and 3,973,884 Program Revenues Changes in Net Assets 2,857,999 326,486 Operating Capital Primary Government - Charges for Grants and Grants and Governmental Business -type 447,580 Expenses Services Contributions Contributions Activities Activities Total $ 2,617,095 $ 1,042,400 $ 68,089 $ - $ (1,506,606) $ - $ (1,506,606) 5,772,697 911,777 160,958 - (4,699,962) (4,699,962) 278,063 - - - (278,063) - (278,063) 1,172,233 36,042 275,350 1,643,898 783,057 783,057 12,778 - - (12,778) (12,778) 148,994 - - (148,994) - (148,994) 1,816,477 463,545 7,456 - (1,345,476) - (1,345,476) 254,725 - - (254,725) - (254,725) 12,073,062 2,453,764 511,853 1,643,898 (7,463,547) - (7,463,547) 3,015,322 4,319,806 6,626 1,133,674 - 2,444,784 2,444,784 3,572,120 3,295,142 5,540 5,153,431 - 4,881,993 4,881,993 1,816,868 2,087,630 4,265 - 275,027 275,027 286,597 626,653 122,069 - 462,125 462,125 8,690,907 10,329,231 138,500 6,287,105 - 8,063,929 8,063,929 20,763,969 12,782,995 650,353 7,931,003 (7,463,547) 8,063,929 600,382 General revenues: Property taxes Franchise fees and utility taxes Intergovernmental - unrestricted Investment income and miscellaneous Gain on sale of capital assets Transfers Total general revenues and transfers Change in net assets Net assets, beginning Net assets, ending 4,416,962 - 4,416,962 3,973,884 3,973,884 2,857,999 - 2,857,999 326,486 824,996 1,151,482 854,233 - 854,233 377,416 (377,416) - 12,806,980 447,580 13,254,560 5,343,433 8,511,509 13,854,942 19,699,242 44,558,148 64,257,390 $ 25,042,675 $ 53,069,657 $ 78,112,332 The accompanying Notes to Financial Statements are an integral part of these statements. ��f�t�1t11111111111111611111111111�111�111�11 FUND FINANCIAL STATEMENTS This page intentionally left blank. rel CITY OF CLERMONT, FLORIDA Assets: Cash and cash equivalents Investments Receivables, net Inventories, at cost Due from other governments Prepaid costs Total assets Liabilities and Fund Balances: Accounts payable Accrued liabilities Retainage payable Deferred revenue Total liabilities Fund balances: Reserved: Inventories and prepaid costs Community redevelopment Debt service Perpetual care Unreserved, reported in: General fund Special revenue funds Capital projects fund Total fund balances Total liabilities and fund balances BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2005 198,287 - - 198,287 239,246 239,246 349,656 349,656 493,870 493,870 5,757,841 - - 5,757,841 - 2,237,554 2,790,257 5,027,811 - - 926,750 926,750 5,956,128 2,237,554 4,799,779 12,993,461 $ 6,273,358 $ 2,238,316 $ 4,803,826 Amounts reported for governmental activities in the statement of net Infrastructure Other Total Capital assets used in governmental activities are not financial resources Special Governmental Governmental General Revenue Funds Funds of the internal service funds are included in governmental activities in the statement of net assets. 366,103 $ 315,190 $ 302,511 $ 1,376,883 $ 1,994,584 4,983,266 1,809,843 3,426,943 10,220,052 63,418 - - 63,418 24,930 - - 24,930 713,197 125,962 - 839,159 173,357 - - 173,357 $ 6,273,358 $ 2,238,316 $ 4,803,826 $ 13,315,500 $ 119,175 $ 762 $ 4,047 $ 123,984 198,055 - - 198,055 322,039 4,047 762 317,230 198,287 - - 198,287 239,246 239,246 349,656 349,656 493,870 493,870 5,757,841 - - 5,757,841 - 2,237,554 2,790,257 5,027,811 - - 926,750 926,750 5,956,128 2,237,554 4,799,779 12,993,461 $ 6,273,358 $ 2,238,316 $ 4,803,826 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore are not reported in the funds 18,902,962 Internal service funds are used by management to charge the costs of medical insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. 366,103 Accrued interest payable is not due in the current period and therefore is not reported in the funds (79,656) Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds (7,140,195) Net assets of governmental activities $ 25,042,675 The accompanying Notes to Financial Statements are an integral part of these statements. 17 CITY OF CLERMONT, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For The Year Ended September 30, 2005 Other Financing Sources (Uses) Sale of capital assets 6,695 Infrastructure Other Total Transfers in 390,348 Special Governmental Governmental Transfers out General Revenue Funds Funds Revenues: Taxes $ 8,295,323 $ $ 95,523 $ 8,390,846 Licenses and permits 484,161 - - 484,161 Intergovernmental revenues 3,677,341 1,538,498 - 5,215,839 Charges for services 389,041 - - 389,041 Fines and forfeitures 164,065 - - 164,065 Impact fees/special assessments - - 1,152,335 1,152,335 Investment income 133,216 44,476 89,269 266,961 Miscellaneous 278,259 - 31,600 309,859 Total revenues 13,421,406 1,582,974 1,368,727 16,373,107 Expenditures: Current: General government 2,186,223 - - 2,186,223 Public safety 5,731,567 - 88,857 5,820,424 Physical environment 318,811 - - 318,811 Transportation 2,513,506 5,915 - 2,519,421 Economic environment 32,793 - 32,793 Human services 156,380 - - 156,380 Culture and recreation 1,157,294 63,514 - 1,220,808 Debt service: Principal retirement 9,506 - 845,068 854,574 Interest and fiscal charges 1,830 - 255,694 257,524 Capital outlay: General government - - 150 150 Total expenditures 12,107,910 69,429 1,189,769 13,367,108 Excess (Deficiency) of Revenues Over Expenditures 1,313,496 1,513,545 178,958 3,005,999 Other Financing Sources (Uses) Sale of capital assets 6,695 - 924,171 930,866 Transfers in 390,348 - 690,812 1,081,160 Transfers out (129,482) (459,270) (114,992) (703,744) Net other financing sources (uses) 267,561 (459,270) 1,499,991 1,308,282 Net Change in Fund Balances 1,581,057 1,054,275 1,678,949 4,314,281 Fund Balances - Beginning 4,375,071 1,183,279 3,120,830 8,679,180 Fund Balances - Ending $ 5,956,128 $ 2,237,554 $ 4,799,779 $ 12,993,461 The accompanying Notes to Financial Statements are an integral part of these statements. 18 00 00 OR do an CITY OF CLERMONT, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended September 30, 2005 Amounts reported for the governmental activities in the statement of activities (page 15) are different because: Net change in fund balances - total governmental funds (page 17) $ 4,314,281 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 381,218 The net effect of sales of capital assets is to decrease net assets. (76,633) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in the treatment of long-term debt and related items. 854,574 FEMA revenue reported in the funds in the current year must be eliminated from the statement of activities since revenue was recognized in the prior year. (202,089) Internal service funds are used by management to charge the cost of medical insurance to individual funds. Net revenue of certain activities of internal service funds is reported with governmental activities. 209,933 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. (137,851) Change in net assets of governmental activities (page 15) $ 5,343,433 The accompanying Notes to Financial Statements are an integral part of these statements. We CITY OF CLERMONT, FLORIDA For The Year Ended September 30, 2005 Revenues: Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) 2,366,754 2,470,338 2,186,223 Variance With 5,501,675 5,800,955 5,731,567 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 7,709,547 $ 7,709,547 $ 8,295,323 $ 585,776 414,700 414,700 484,161 69,461 3,104,917 3,104,917 3,677,341 572,424 389,665 389,665 389,041 (624) 133,000 133,000 164,065 31,065 118,100 118,100 133,216 15,116 199,360 199,360 278,259 78,899 12, 069,289 12,069,289 13,421,406 1,352,117 2,366,754 2,470,338 2,186,223 284,115 5,501,675 5,800,955 5,731,567 69,388 372,070 376,072 318,811 57,261 2,601,220 2,604,234 2,513,506 90,728 34,250 34,250 32,793 1,457 172,325 173,602 156,380 17,222 1,332,750 1,339,575 1,157,294 182,281 14,139 14,139 9,506 4,633 872 2,077 1,830 247 12,396,055 12,815,242 12,107,910 707,332 (326,766) (745,953) 1,313,496 2,059,449 Sale of capital assets - - 6,695 6,695 Transfers in 420,050 420,050 390,348 (29,702) Transfers out (129,884) (129,884) (129,482) 402 Net other financing sources (uses) 290,166 290,166 267,561 (22,605) Net Change in Fund Balance (36,600) (455,787) 1,581,057 2,036,844 Fund Balances - Beginning 4,375,071 4,375,071 4,375,071 - Fund Balances - Ending $ 4,338,471 $ 3,919,284 $ 5,956,128 $ 2,036,844 The accompanying Notes to Financial Statements are an integral part of these statements 20 CITY OF CLERMONT, FLORIDA INFRASTRUCTURE SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Revenues: Intergovernmental revenues Investment income Total revenues Expenditures: General government Physical environment Transportation Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Net other financing sources (uses) Net Change in Fund Balance Fund Balances - Beginning Fund Balances - Ending The accompanying Notes to Financial Statements are an integral part of these statements. 21 Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 1,235,000 $ 1,235,000 $ 1,538,498 $ 303,498 9,900 9,900 44,476 34,576 1,244,900 1,244,900 1,582,974 338,074 20,000 20,000 5,915 14,085 70,000 70,000 63,514 6,486 90,000 90,000 69,429 20,571 1,154,900 1,154,900 1,513,545 358,645 (458,615) (459,271) (459,270) 1 (458,615) (459,271) (459,270) 1 696,285 695,629 1,054,275 358,646 1,183,279 1,183,279 1,183,279 - $ 1,879,564 $ 1,878,908 $ 2,237,554 $ 358,646 The accompanying Notes to Financial Statements are an integral part of these statements. 21 Assets Current assets: Cash and cash equivalents Investments Restricted cash and cash equivalents Receivables, net Inventories Due from other funds Prepaid costs Total current assets Noncurrent assets: Restricted investments Interest receivable Bond issuance costs Capital assets: Land, buildings and equipment Construction in progress Less accumulated depreciation Total capital assets (net of accumulated depreciation) Total noncurrent assets Total assets CITY OF CLERMONT, FLORIDA STATEMENT OF NET ASSETS - PROPRIETARY FUNDS September 30, 2005 Governmental Activities - Business -Type Activities -Enterprise Funds Internal Service Water Sewer Sanitation Stormwater Total Fund $ 385,906 $ 237,041 $ 230,800 $ 230,600 $ 1,084,347 $ 185,380 7,292,083 2,301,972 739,719 677,241 11,011,015 508,700 367,078 726,138 - - 1,093,216 340,139 303,673 184,780 168,765 997,357 - 18,177 - - - 18,177 965,064 - - - 965,064 22,420 39,810 13,144 3,618 78,992 - 9,390,867 3,608,634 1,168,443 1,080,224 15,248,168 694,080 7,157,520 20,092,738 - - 27,250,258 - 2,778 91,698 - - 94,476 121,226 215,515 - - 336,741 - 12,697,445 24,842,054 966,367 1,640,178 40,146,044 111,278 242,349 - 215,584 569,211 - (4,441,655) (5,971,382) (740,269) (222,309) (11,375,615) - 8,367,068 19,113,021 226,098 1,633,453 29,339,640 - 15,648,592 39,512,972 226,098 1,633,453 57,021,115 - 25,039,459 43,121,606 1,394,541 2,713,677 72,269,283 694,080 22 111.4141 t1.1- I I I 1 -1111 A I A A A I A 1��11�1111\1N�\1 ��®�®��7��®��iii+�i►i�iiii iiii'iii Liabilities Current liabilities: Accounts payable Accrued liabilities Retainage payable Due to other funds Customer deposits payable Revenue bonds payable -current Accrued interest payable Total current liabilities Noncurrent liabilities: Revenue bonds payable Total noncurrent liabilities Total liabilities Net Assets Business -Type Activities -Enterprise Funds Water Sewer Sanitation Stormwater Total Governmental Activities - Internal Service Fund 150,293 87,837 89,585 6,722 334,437 161,436 129,555 91,519 31,557 12,256 264,887 - - 5,877 - 13,001 18,878 - 965,064 - 965,064 - 216,316 - - 216,316 - 51,000 99,000 - 150,000 111,327 197,915 - - 309,242 - 658,491 1,447,212 121,142 31,979 2,258,824 161,436 7,043,024 10,064,319 - - 17,107,343 7,043,024 10,064,319 - - 17,107,343 7,701,515 11,511,531 121,142 31,979 19,366,167 161,436 Invested in capital assets, net of related debt 1,273,044 8,949,702 226,098 1,633,453 12,082,297 - Restricted 7,058,031 20,515,408 - - 27,573,439 - Unrestricted 9,006,869 2,144,965 1,047,301 1,048,245 13,247,380 - Total net assets $ 17,337,944 $ 31,610,075 $ 1,273,399 $ 2,681,698 52,903,116 $ 532,644 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 166,541 Net assets of business -type activities $ 53,069,657 The accompanying Notes to Financial Statements are an integral part of these statements. 23 This page intentionally left blank. OF IL a 9 ow 01.41 WIL J CITY OF CLERMONT, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUNDS Operating Revenues User charges Miscellaneous Total operating revenues Operating Expenses Personal services Utilities Dump fees Administrative services Repairs and maintenance Depreciation and amortization Professional services Insurance Other expenses Total operating expenses Operating income (loss) Nonoperating Revenue (Expenses) Grant revenue Investment income Interest expense Total nonoperating revenue (expense) Income (loss) before contributions and transfers Capital contributions -fees and assessments Transfers out Change in net assets Total Net Assets - Beginning Total Net Assets - Ending For The Year Ended September 30, 2005 Business -Type Activities -Enterprise Funds Water Sewer Sanitation Stormwater Total Governmental Activities - Internal Service Fund $ 4,089,660 $ 3,295,142 $ 2,053,175 $ 626,653 $ 10,064,630 $ - 230,146 - 34,455 - 264,601 1,579,392 $ 4,319,806 $ 3,295,142 $ 2,087,630 $ 626,653 $ 10,329,231 $ 1,579,392 1,065,446 1,041,627 360,603 156,326 2,624,002 - 282,418 407,650 - - 690,068 - 52,682 229,714 14,341 296,737 125,475 156,895 37,775 25,720 345,865 579,941 403,258 136,778 14,840 1,134,817 - 319,518 603,510 69,213 41,046 1,033,287 82,727 85,141 903,897 7,970 1,079,735 68,489 102,388 24,678 16,063 211,618 - 175,502 144,000 59,040 10,291 388,833 1,298,563 2,699,516 2,997,151 1,821,698 286,597 7,804,962 1,298,563 1,620,290 297,991 265,932 340,056 2,524,269 280,829 6,626 5,540 4,265 122,069 138,500 - 298,384 481,405 21,623 23,584 824,996 13,829 (349,448) (621,222) - - (970,670) - (44,438) (134,277) 25,888 145,653 (7,174) 13,829 1,575,852 163,714 291,820 485,709 2,517,095 294,658 1,133,674 5,153,431 - - 6,287,105 - (377,416) (377,416) - 2,332,110 5,317,145 291,820 485,709 8,426,784 294,658 15,005,834 26,292,930 981,579 2,195,989 $ 17,337,944 $ 31,610,075 $ 1,273,399 $ 2,681,698 Adjustment to reflect the consolidation internal service fund activities related to enterprise funds. Change in net assets of business -type activities 84,725 $ 8,511,509 The accompanying Notes to Financial Statements are an integral part of these statements. 24 237,986 $ 532,644 Cash Flows from Operating Activities: Receipts from customers Receipts from internal services provided Payments to suppliers Payments to employees Net cash provided (used) by operating activities Cash Flows from Non -Capital Financing Activities: Decrease in due from other funds Decrease due to other funds Decrease in due from other governments Grant revenues Transfers out Net cash provided (used) by non -capital financing activities Cash Flows from Capital and Related Financing Activities: Acquisition of capital assets Interest paid on long-term debt Fees and assessments received Net cash provided (used) by capital and related financing activities CITY OF CLERMONT, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended September 30, 2005 Cash Flows from Investing Activities: Purchase of investments (1,917,002) (5,495,419) (214,797) (67,447) (7,694,665) (307,820) Investment income 298,384 431,992 21,623 23,584 775,583 13,829 Net cash provided by investing activities (1,618,618) (5,063,427) (193,174) (43,863) (6,919,082) (293,991) 25 ■ 1 111 11i Governmental Activities - Business -Type Activities -Enterprise Funds Internal Service Water Sewer Sanitation Stormwater Total Fund $ 4,334,981 $ 3,250,763 $ 2,065,897 $ 658,153 $ 10,309,794 $ - - - - - 1,579,392 (1,278,288) (1,341,543) (1,474,363) (133,706) (4,227,900) (1,214,420) (1,056,066) (1,036,163) (360,809) (158,505) (2,611,543) - 2,000,627 873,057 230,725 365,942 3,470,351 364,972 38,707 - - - 38,707 - (38,707) - - (38,707) 25,171 51,540 28,087 7,691 112,489 - 6,626 5,540 4,265 122,069 138,500 - (377,416) - - - (377,416) - (306,912) 18,373 32,352 129,760 (126,427) - (716,754) (94,421) (609) (292,359) (1,104,143) (368,255) (651,914) - - (1,020,169) 1,133,674 5,153,431 6,287,105 - 48,665 4,407,096 (609) (292,359) 4,162,793 Cash Flows from Investing Activities: Purchase of investments (1,917,002) (5,495,419) (214,797) (67,447) (7,694,665) (307,820) Investment income 298,384 431,992 21,623 23,584 775,583 13,829 Net cash provided by investing activities (1,618,618) (5,063,427) (193,174) (43,863) (6,919,082) (293,991) 25 ■ 1 111 11i Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - End Classified As: Cash and cash equivalents Restricted cash and cash equivalents Total Reconciliation of Operating Income (Loss) to Net Cash Provided By Operating Activities Operating income Adjustments Not Affecting Cash: Depreciation and amortization Change in Assets and Liabilities: Decrease (increase) in accts receivable Decrease (Increase) in prepaid costs Decrease in inventory Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase in customer deposits Total adjustments Net Cash Provided by Operating Activities 123,762 235,099 69,294 159,480 587,635 70,981 629,222 728,080 161,506 71,120 1,589,928 114,399 $ 752,984 $ 963,179 $ 230,800 $ 230,600 $ 2,177,563 185,380 $ 385,906 237,041 $ 230,800 $ 230,600 $ 1,084,347 $ 185,380 367,078 726,138 - - 1,093,216 - $ 752,984 $ 963,179 $ 230,800 $ 230,600 $ 2,177,563 $ 185,380 $ 1,620,290 $ 297,991 $ 265,932 $ 340,056 $ 2,524,269 $ 280,829 319,518 603,510 69,213 41,046 1,033,287 - (19,394) (44,379) (21,733) 31,500 (54,006) (3,225) (2,912) 1,030 (441) (5,548) - 51,264 - - - 51,264 - (11,775) 13,383 (83,511) (44,040) (125,943) 84,143 9,380 5,464 (206) (2,179) 12,459 - 34,569 - - - 34,569 - 380,337 575,066 (35,207) 25,886 946,082 84,143 $ 2,000,627 $ 873,057 $ 230,725 $ 365,942 $ 3,470,351 $ 364,972 The accompanying Notes to Financial Statements are an integral part of these statements. 26 This page intentionally left blank. CITY OF CLERMONT, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS September 30, 2005 Assets: Cash Investments (at fair value): Equity Funds Bond Funds Total Assets: Liabilities: Accounts payable Net Assets: Held in trust for pension benefits Total Employee Pension Funds $ 279,298 4,981,374 3,254,498 8,515,170 $ 8,515,170 The accompanying Notes to Financial Statements are an integral part of these statements. 27 CITY OF CLERMONT, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended September 30, 2005 Additions: Contributions: Employer Plan members State Total contributions Investment income: Net increase in fair value of investments Less investment expense Net investment income Total additions Deductions: Benefits/distributions Administrative expenses Total deductions Change in Net Assets Net Assets - Beginning Net Assets - End Total Employee 411111 Pension Funds 291,106 W. $ 509,722 4P 58,494 255,963 824,179 dw 706,388 ow 706,388 i00 1,530,567 spa 250,227 40,879 291,106 1,239,461 w- 7,275,709 40 40 $ 8,515,170 so 4" go so 40 go go so as The accompanying Notes to Financial Statements are an integral part of these statements. 28 00 00 NOTES TO FINANCIAL STATEMENTS I! Pill 04 ok This page intentionally left blank. A �I CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2005 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 Wk operates under the council-manager form of government under its charter adopted pursuant to OR H.B. 2223, Ch.67-1217 Special Acts, of the State of Florida. The legislative branch of the City OR 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 0% responsibility of the Council appointed City Manager. 0 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 Cityof 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. 29 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 1 - Summary of Significant Accounting Policies (Continued): B. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are 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. 30 00 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 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 �1 only when cash is received by the City. The government reports the following funds: The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Infrastructure Special Revenue Fund was established to account for the proceeds of the Local Government Infrastructure Surtax. The proceeds and interest accrued thereto, by law are only to be used to finance, plan and construct infrastructure. Special Revenue Funds account for specific revenue sources that are restricted by law or administrative action to expenditures for specific purposes. Debt Service Fund is used to account for the accumulation of resources for, and the payment of principal and interest on certain long-term debt. Capital Projects Fund account for financial resources segregated for the acquisition or construction of major capital facilities. Major Proproetant 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. 31 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Ma;or Pro rin etary Funds (Continued) Sewer Fund is used to account for the operations of the City's sewer system, which is financed in a manner similar to private business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are financed primarily through user charges. Sanitation Fund is used to account for the fiscal activities of the City's refuse collection and disposal operation. 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. 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. 32 04 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) A Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's water, sewer, sanitation and stormwater utility funds are charges to customers for sales and services. The City also recognizes as operating revenue the meter fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Assets or Equity 1. Deposits and Investments IN 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. 0191 OR 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 implemented Government Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosures, for fiscal year 2005. The effect of this statement is the inclusion of new disclosures for deposit and investment risks. M 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other "due outstanding balances between funds are reported as to/from other funds." 33 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity - (Continued) 2. Receivables and Payables - (Continued) Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All receivables are shown net of an allowance for 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. 4. Restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet. 34 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 0# Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity - (Continued) A 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government - wide financial statements. Capital assets are defined by the City, in accordance r; with Chapter 274.02, Florida Statutes, as assets with an initial, individual cost of �# $750 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value w at the date of donation. map) Infrastructure acquired prior to October 1, 2003 has not been recorded for governmental activities. GASB Statement No. 34 requires the reporting and deprecation of new infrastructure expenditures effective with the beginning of the implementation year (October 1, 2003). 00P The costs of normal maintenance and repairs that do not add to the value of the pop asset or materially extend asset lives are not capitalized. on Major outlays for capital assets and improvements are capitalized as projects are Oft constructed. Interest incurred during the construction phase of capital assets of oft 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: oft Assets Buildings Years 10-50 Improvements 15-50 Infrastructure 30-50 Equipment 3-15 map an 35 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity - (Continued) 6. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay is accrued when incurred in the government -wide and proprietary financial statements. A portion of sick pay is accrued for employees with at least ten (10) years of service. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated absences are generally liquidated by the general fund. 7. Long -Term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. AW Am 36 P" 04 04 OR an CITY OF CLERMONT, FLORIDA September 30, 2005 Note 2 - 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 govemmental funds and changes in net assets of govemmental 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 $381,218 difference are as follows: Capital outlay $ 2,492,253 Depreciation expense (2.111,035) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of govemmental activities Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets." The details of this $854,574 difference are as follows: Debt issued or incurred: Loan proceeds $ - Principal repayment 854,574 Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of govemmental activities 8$524 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 $(140,650) Accrued interest payable 2,799 Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities 137 R51) 37 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 3 - Stewardship, Compliance, and Accountability: Budgetary Information - The City follows these procedures in establishing the budgetary data reflected in the financial statements: (1) Prior to the end of the fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. (2) Budget workshops are scheduled as needed. (3) The general summary of the budget and notice of public hearing is published in the local newspaper. (4) Public hearings are conducted to obtain taxpayer comments. (5) Prior to October 1, the budgets are legally enacted through passage of a resolution. (6) The City Manager is authorized to transfer budgeted amounts within and between departments; however, any revisions that alter the total appropriations of any fund must be approved by the City Council. (7) The level of classification detail at which expenditures may not legally exceed appropriations is the department level. (8) Appropriations lapse at the close of the fiscal year to the extent they have not been expended. Encumbrance accounting is not used by the City. (9) Budgets are adopted for the general fund, special revenue funds, debt service funds and the capital projects fund on a basis consistent with generally accepted accounting principles. 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. M IW IW tW tW tW IW tW lW !W 4W OW OW IW 0W CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENT_Continued September 30, 2005 Note 4 - Cash and Investments: Deposits At year-end, the carrying amount of the City's deposits was $(411,850) and the bank balance was $205,141. Fiduciary fund cash of $279,298 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 epositoriesInv stm nt 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 investment company or investment trust registered Act of 1940. (g) Repurchase Agreements. (h) Other investments authorized by ordinance. or closed-end management -type under the Investment Company The assets of the City's police and firefighters pension funds, as well as the general employees defined benefit pension fund, are invested in the pooled investment fund for the Florida Municipal Pension Trust Fund (FMPTF). Investments held in this fund consist of corporate bonds and stocks and cash equivalents. The fund is stated at fair value, and investment earnings are allocated to participants in the fund based on their equity in this pooled investment account is stated at fair value as provided by the Florida Municipal Pension Fund. 39 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 4 - Cash and Investments (Continued): Investments - (Continued) Most of the City's investments besides pension funds are invested in the SBA, an investment pool administered by the State of Florida. Investments held in the State Board Administration Fund (SBA) consist of short-term federal agency obligations, treasury bills, repurchase agreements and commercial paper. The SBA is not a registrant with the Securities and Exchange Commission (SEC); however, the SBA has adopted operating procedures consistent with the requirements for a 2a-7 like pool and the fair value of the position in the pool is equal to the fair value of the pool shares. Such investments are stated at amortized cost in the accompanying financial statements. Investment income is recognized as earned and is allocated to the participating funds based on their equity participation. Investments made by the City of Clermont at September 30, 2005 are summarized below. Defined benefit pension plan investments, other than $4,981,374 in mutual funds investing in equity securities, are included below. In accordance with GASB 31, investments are reported at fair value. Weighted Average Maturity Investment TvT Fair Value Credit Rating (Yew State Board of Administration $25,195,344 Unrated < 90 days Federal Agency Bond 18,768,125 AAA 0.994 FHLMC Disc. Note 2,541,987 A-1+ 0.274 US Treasury Bond 2,484,570 TSY 0.328 Repurchase Agreements 4,769,376 Unrated <90 days Pension Plan Investments: FMIVT Broad Market High Quality Bond Portfolio 3,254,498 $ 3,954,40 AA / V4 5.7 The City's investment policy limits credit risk by restricting authorized investments to those described above. 40 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 4 - Cash and Investments (Continued): Investments - (Continued) 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 06 ability to assess its member financial institutions for collateral shortfalls if a default or 04 insolvency has occurred. At September 30, 2005, all of the city's bank deposits were 00 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, 2005, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk: The City's investment policy requires diversification, but does not specify limits on types of investments. Interest Rate Risk: IIS 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 M 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. 41 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 5 - Receivables: 4P Receivables as of year end for the City's individual major funds and nonmajor funds, including W the applicable allowances for uncollectible accounts, are as follows: Receivables: Accounts Taxes and Licenses Other Less allowance for uncollectible accounts Note 6 - Capital Assets: Capital asset activity for the year ended September 30, 2005 was as follows: W Governmental activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements/infrastructure Machinery and equipment Total capital assets, being depreciated Beginning Ending Baan .g. Increases DP -r_ easps $mar 011111 so $ 4,274,427 $ 106,097 $ - $ 4,380,524 00 7,650 - 7,650 No on 8,993,938 - (95,676) 8,898,262 so 9,548,744 1,733,516 - 11,282,260 1s 55,056-1y59 644,990 (235,676) 5,465,473 ON 23-598,841 2,378.5M 31352) 25,645,995 so Ild Less accumulated depreciation for: Buildings (2,621,152) Improvements/infrastructure (4,574,701) Machinery and equipment (2,079,038) Total accumulated depreciation (9,274891) Total capital assets, being depreciated, net Governmental activities capital assets, net 42 OM (574,111) 77,570 (3,117,693) (849,742) - (5,424,443) (687 82) 177,149 (2,589,071) ( 111,0355) 254,71 (11,131,207) � 267,471 (76,6) 14,514,788 PW 10 381.218 $�6 _3) $18-909969 ow wo General Water Sewer Sanitation Nonmajor W Eund Fund Eund Eund Funds Total W $20,168 $338,021 $317,015 $193,846 $172,283 $1,041,333 No 35,651 - - - - 35,651 IP 7,897 19,838 - - - 27,735 qs Capital asset activity for the year ended September 30, 2005 was as follows: W Governmental activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements/infrastructure Machinery and equipment Total capital assets, being depreciated Beginning Ending Baan .g. Increases DP -r_ easps $mar 011111 so $ 4,274,427 $ 106,097 $ - $ 4,380,524 00 7,650 - 7,650 No on 8,993,938 - (95,676) 8,898,262 so 9,548,744 1,733,516 - 11,282,260 1s 55,056-1y59 644,990 (235,676) 5,465,473 ON 23-598,841 2,378.5M 31352) 25,645,995 so Ild Less accumulated depreciation for: Buildings (2,621,152) Improvements/infrastructure (4,574,701) Machinery and equipment (2,079,038) Total accumulated depreciation (9,274891) Total capital assets, being depreciated, net Governmental activities capital assets, net 42 OM (574,111) 77,570 (3,117,693) (849,742) - (5,424,443) (687 82) 177,149 (2,589,071) ( 111,0355) 254,71 (11,131,207) � 267,471 (76,6) 14,514,788 PW 10 381.218 $�6 _3) $18-909969 ow CITY OF CLERMONT, FLORIDA Note 6 - Capital Assets (Continued): September 30, 2005 Beginning Ending Balance Increases Decreases $alapce, Business -type activities: Capital assets, not being depreciated: Land $ 1,464,129 $ - $ - $ 1,464,129 Construction in progress 2,3,629 - (1.494,418) 569,211 Total capital assets, not being depreciated 3,527,75858 - (1.494,418) 2,033,340 Capital assets, being depreciated: Buildings Improvements Machinery and equipment Total capital assets, being depreciated Less accumulated depreciation for: 41,324 - - 33,856,594 2,400,642 - 2,476�701 93,475 (1866,821) 36374,619 2j494,117 (186,821) Buildings (37,643) (1,942) - Improvements (8,742,895) (850,398) - Machinery and equipment (1,748,,0 (180,968) 186821 Total accumulated depreciation (10,529,28) (1.033,,0 186,821 41,324 36,257,236 2383355 (39,585) (9,593,293) (,742,737) (11,375,515) Total capital assets, being depreciated, net 25,845491 1,460,809 - 7,306-3x00 Business -type activities capital assets, net $99 373 249 1 460 809 $(1494418) 129 339 640 Depreciation expense was charged to functions/programs as follows: Governmental activities: General government $ 502,354 Public safety 536,488 Physical environment/transportation 336,992 Culture and recreation 735,E Total depreciation expense - governmental activities $2,111,05 Business -type activities: Water $ 319,518 Sewer 603,510 Sanitation 69,213 Stormwater 41,046 Total depreciation expense - business -type activities $1,033,287 43 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 7 - Long -Term Debt: The City issues bonds to provide funds for the acquisition and construction of major capital assets. Bonds have been issued for both governmental and business -type activities. The original amount of revenue bonds issued in prior years is described below. Revenue bonds outstanding at year end are as follows: Balance Interest Rates Original September 30, Governmental Activities and Dates Maturmly Amount 21?45 Public Improvement Revenue Bonds, Series 2002 Water and Sewer Revenue and Refunding Bonds, Series 2000 1.75-4.6% 12/01/2003 to (6/1 & 12/1) 12/01/2017 $ 6,96.-nn0 4.4-5.25% 12/01/2004 to (6/1 & 12/1) 12/01/2030 [governmental Activities Principal Interest 2006 $ 405,000 $ 238,969 $ 150,000 $ 924,352 2007 415,000 228,338 230,000 915,802 2008 425,000 216,406 390,000 901,657 2009 440,000 202,806 410,000 883,207 2010 455,000 187,406 430,000 863,781 2011-2015 2,550,000 659,853 2,465,000 3,984,031 2016-2020 1,490,000 122,770 3,155,000 3,275,063 2021-2025 - - 4,080,000 2,324,228 2026-2030 - - 5,290,000 1,072,581 2031 - - 1,235,000 33,191 44 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Rift 04 Note 7 - Long -Term Debt (Continued): Notes Payable The City has notes payable for governmental activities only. During 2005, the City entered into no new note payable agreements. Notes payable outstanding at year end are as follows: Balance �Original Amount September.30, 2005 Capital Improvement Notes, Series 1998A due to �! SunTrust Bank in five annual calendar year installments of $80,829 (including interest) and two annual installments of $22,979 starting December 1999. The notes bear an interest rate of 3.95%. The loan was obtained to upgrade the e� City's computer system and purchase a fire truck. $397,000 $ 22,106 WN Capital Improvement Notes, Series 1999 due to NOD SunTrust Bank in ten annual installments of $40,264 (including interest) beginning December Mal 2000. The notes bear an interest rate of 5.742%. NOD The loan was obtained to purchase a fire truck. 300,000 170,802 Mob Note payable to GMAC in twelve quarterly moo installments of $2,440 each, starting July 2003, 001 including interest at 4.65%, secured by vehicle. 27,500 11,786 aw-0 Note payable dated November 21, 2003, due in owl two annual installments of $400,000 each, starting OWI November 21, 2004, secured by land. 800,000 400,000 ON Total: wtj W, nes W11 Mel M101 Wo MOD end nol Mel 45 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 7 - Long -Term Debt (Continued): Annual requirements to amortize outstanding notes payable for governmental activities as of September 30, 2005 are as follows: Year Ending 2006 $464,349 $ 4,221 2007 32,205 7,134 2008 34,054 5,232 2009 36,009 3,220 2010 38,077 1,093 Total: fiII4 - (400,000) 400,000 400,000 Changes in Long -Term Liabilities Long-term liability activity for the year ended September 30, 2005 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bond payable - Revenue bonds T, 6,575,000 $__ s(nm 000) s 6180,000 S9;405 000 Notes payable - Library Note 4,979 - (4,979) - - Parks Mortgage Note 800,000 - (400,000) 400,000 400,000 Revenue Note, Series 1999 199,605 - (28,802) 170,802 30,456 Notes Payable 59,685 - (25,793) 33,892 22.106 Total notes payable 1,064,269 - X459,574) 604,694 452,562 Compensated absences 214,850 140,650 - 355,500 - Governmental activity long-term liabilities $ 7�9 $i4D-650 4_5Z4) 7140194 $857562 Business -type activities: Bonds payable - Revenue bonds 17,935,000 - (100,000) 17,835,000 150,000 Less deferred amount: Issuance discount (6,16,222) - 38E (,577,657) - Business -type activity long-term liabilities $61,4. 35 X17,2-97,343 50 46 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 8 - Advance Refunding: In prior years, the City defeased its 1972 and 1988 bond issues by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. On September 30, 2005, $1,420,000 of bonds outstanding are considered defeased. Note 9 - Interfund Receivables, Payables and Transfers: The composition of due to/from other funds at September 30, 2005 is as follows: Water Fund $ Sewer Fund 96 Interfund transfers for the year ended September 30, 2005 consisted of the following: Transfer In Non -major General Governmental Fund Funds Total Transfer Out: General Fund $ - $129,482 $ 129,482 Infrastructure Fund - 459,270 459,270 Non -major Governmental Funds 12,932 102,060 114,992 Water Fund 377,416 - 377,416 Sewer Fund - - - Sanitation Fund - - - Nonmajor Business - Type Funds - - - Total6.9D�812 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) move receipts restricted to debt service from the funds as debt service payments become due. 47 dog CITY OF CLERMONT, FLORIDA September 30, 2005 Note 10 - Retirement Plans: The City maintains three separate single -employer, defined benefit plans for general employees, sworn police officers and firefighters, as well as a defined contribution plan for general employees. The investment and administrative agent for the defined benefit plans is the Florida Municipal Pension Trust Fund, an agent of the multiple -employer Public Employee Retirement System. The assets of the defined contribution plan were administered by Citistreet. 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. 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. Publicly available financial reports for each plan, that include detailed actuarial data, can be obtained from the City's Administrative Services Department. 48 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 10 - Retirement Plans (Continued): In 1997 the City adopted GASB Statement No. 25 on pension accounting and reporting. This Statement requires the disclosure of any investments in any one organization that represents 5% or more of plan net assets. All investments in the police officers' retirement trust fund and the firefighters' pension fund are invested in the Principal Financial Group's various investment portfolios. There are no investments that exceed 5% of plan net assets. None of the plans held securities issued by the employer. Description of Plans - 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. l 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. Membership in each of the defined benefit pension plans at September 30, 2005 was as follows: General Police Provisions Employees Officers Firefighters Membership and Members Retirees and beneficiaries currently receiving benefits 12 4 1 Vested terminated employees - 4 7 Active participating employees = 34 3a Total 12 42 41 Funding Policy - The City's actuarially determined contribution rate per the October 1, 2004 actuarial valuations is 0% for general employees, 20.4% for police officers and 17.8% for firefighters. Police officers make a minimum mandatory contribution of 3% and firefighters make a minimum mandatory contribution of 1 %, in order to take advantage of the insurance premium tax rebate provided for in the statutes. Administrative costs are deducted from the net assets of the plan. 49 CITY OF CLERMONT, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 9 - Defined Benefit Retirement Plans (Continued): Annual Pension Cost and Net Pension Obligation - The City has contributed the Annual Required Contribution (ARC) each year, since plan inception and has not had, or had need to report, a Net Pension Obligation (NPO). In accordance with GASB Statement No. 27, the City calculated the potential for a net pension liability (asset) and reaffirmed that none existed at September 30, 2005. State law requires that actuarial valuations of the Police and Fire Plan be performed at least every three years. An actuarial valuation was performed as of October 1, 2004. The actuarial and census information contained herein, unless otherwise indicated, reflects the status of the Plan as of the actuarial valuation date. Required supplementary information is as follows: Schedule of Contributions from the Employer and Other Contributing Entities Police Officers Firefighters General Employees Annual Percentage Annual Percentage Annual Percentage Year Ended September 30 Required Contribution of ARC Contributed Required Contribution of ARC Contributed Required Contribution of ARC Contributed 2005 $7,346 100% $302,069 100% $166,264 100% 2004 5,500 100% 271,682 100% 101,291 100% 2003 8,091 100% 170,345 100% 83,365 100% 2002 5,301 100% 87,526 100% 10,283 100% 2001 10,022 100% 100,216 100% 10,252 100% 2000 9,936 100% 80,737 100% 9,097 100% 1999 5,341 100% 70,318 100% 5,397 100% 50 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 10 - Retirement Plans (Continued): Notes to the Required Supplementary Information - The information presented in the required supplementary schedule was determined as part of the actuarial valuation at October 1, 2004. Additional information applies as follows: ■ Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Actuarial Assumptions: Investment rate of return Projected salary increases (including inflation of 3.5%) Cost of living adjustment General Employees Aggregate Cost N/A N/A Market Value 7.5% 6.0% N/A Police Officers Aggregate Cost N/A N/A Market Value 7.5% 5.5% N/A Aggregate Cost N/A N/A Market Value 7.5% 5.5% N/A As noted above, all of the plans use the aggregate actuarial cost method, which does not identify or separately amortize unfunded actuarial liabilities. Therefore, presentation of a schedule of funding progress is not required. 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 2005 was $3,499,102; the City's total payroll for City employees was $4,410,694. 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. 51 CITY OF CLERMONT, FLORIDA September 30, 2005 Note 10 - Retirement Plans (Continued): The actual contribution made by the City for fiscal year 2005 was $349,489. Note 11 - Post-retirement Benefits: Retired employees have the option of continuing the same type of health and dental insurance coverage available to them while they were employed with the City. The cost of the premiums is paid totally by the retirees. Note 12 - Risk Management: During fiscal year 1990, the City established an internal service fund to account for its uninsured risk of loss for employee medical and dental coverage. Under this program, the fund provides coverage for the first $40,000 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 $1,000,000. 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. 2= Claims liabilities, beginning of year $ 77,293 Incurred claims 1,034,594 Payments on claims (A50,451) Claims liabilities, end of year $ 161,436 Note 13 - Commitments and Contingencies: 2!?Q4 2= $ 62,770 $ 142,709 894,015 931,951 (879,49) (1,011,890) 77.2q3 $ 69.7 Litigation - The City is engaged in various liability claims incidental to the conduct of its general government operations at September 30, 2005. 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. 52 14 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Pw PO This page intentionally left blank. OW pow PO Pw Cleo so on ell sill on we oft on on sol an NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Recreation Impact Fees Fund This fund was established to account for recreation impact fees collected from new developments constructed in the City. Police Impact Fees Fund This fund was established to account for police impact fees collected from new developments constructed in the City. Fire Impact Fees Fund This fund was established to account for fire impact fees collected from new developments constructed in the City. Community Redevelopment Fund This fund is used to account for funds administered by Downtown Clermont Redevelopment Agency. The agency is authorized to use the funds to finance community redevelopment projects within the downtown area. Debt Service Fund Debt Service Fund This fund was established to account for the accumulation of resources and payment of bond principal and interest from governmental resources. Capital Projects Fund Capital Projects Fund This fund was established to account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. Cemetery Perpetual Care Fund Permanent 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. CITY OF CLERMONT, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2005 53 00 go F- r L AM on am 00 r r r Special Revenue Recreation Police Fire Impact Impact Impact Community Fees Fees Fees Redevelopment Assets: Cash and cash equivalents $ 349,771 $ 297,609 $ 201,789 $ 86,766 Investments 685,786 956,197 303,152 152,480 Total assets $ 1,035,557 $ 1,253,806 $ 504,941 $ 239,246 Liabilities and Fund Balances: Liabilities: Accounts payable $ 192 $ - $ 3,855 $ - Totalliabilities 192 - 3,855 - Fund Balances: Reserved - - - 239,246 Unreserved 1,035,365 1,253,806 501,086 - Total fund balances 1,035,365 1,253,806 501,086 239,246 Total liabilities and fund balances $ 1,035,557 $ 1,253,806 $ 504,941 $ 239,246 53 00 go F- r L AM on am 00 r r r $ 4,047 $ - $ - $ - $ 4,047 4,047 - - - 4,047 239,246 2,790,257 349,656 - 926,750 3,029,503 349,656 926,750 493,870 1,082,772 3,717,007 493,870 4,799,779 $ 3,033,550 $ 349,656 $ 926,750 $ 493,870 $ 4,803,826 54 Permanent Fund Total Special Cemetery Nonmajor Revenue Debt Capital Perpetual Governmental Total Service Projects Care Funds $ 935,935 $ 349,656 $ - $ 91,292 $ 1,376,883 2,097,615 - 926,750 402,578 3,426,943 $ 3,033,550 $ 349,656 $ 926,750 $ 493,870 $ 4,803,826 $ 4,047 $ - $ - $ - $ 4,047 4,047 - - - 4,047 239,246 2,790,257 349,656 - 926,750 3,029,503 349,656 926,750 493,870 1,082,772 3,717,007 493,870 4,799,779 $ 3,033,550 $ 349,656 $ 926,750 $ 493,870 $ 4,803,826 54 CITY OF CLERMONT, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2005 55 Special Revenue Recreation Police Fire Impact Impact Impact Community Fees Fees Fees Redevelopment Revenues: $ - $ - $ - $ 95,523 Taxes impact fees/special assessments 425,469 395,316 331,550 - Investment income 23,204 28,834 11,657 5,454 Miscellaneous - - - Total revenues 448,673 424,150 343,207 100,977 Expenditures: Current: Public safety - 33,807 55,050 - Culture and recreation - - - - Debt service: Principal retirement 400,000 - 50,068 - Interest and fiscal charges - - 12,078 - Capital outlay: General government - - - _ Total expenditures 400,000 33,807 117,196 - Excess (Deficiency) of Revenues Over Expenditures 48,673 390,343 226,011 100,977 Other Financing Sources (Uses): Sale of capital assets - - - Transfers in - - - 52,936 Transfers out - - (102,060) - Total other financing sources (uses) - - (102,060) 52,936 Net Change in Fund Balances 48,673 390,343 123,951 153,913 Fund Balances - Beginning 986,692 863,463 377,135 85,333 Fund Balances - Ending $ 1,035,365 $ 1,253,806 $ 501,086 $ 239,246 55 Permanent Fund Total Special Cemetery Nonmajor Revenue Debt Capital Perpetual Governmental Total Service Projects Care Funds $ 95,523 $ - $ $ $ 95,523 1,152,335 - - - 1,152,335 69,149 4,609 2,579 12,932 89,269 - - - 31,600 31,600 1,317,007 4,609 2,579 44,532 1,368,727 88,857 - - - 88,857 450,068 395,000 - 845,068 12,078 243,616 - - 255,694 - - 150 150 551,003 638,616 150 1,189,769 766,004 (634,007) 2,579 44,382 178,958 - - 924,171 - 924,171 52,936 637,876 - - 690,812 (102,060) - - (12,932) (114,992) (49,124) 637,876 924,171 (12,932) 1,499,991 716,880 3,869 926,750 31,450 1,678,949 2,312,623 345,787 - 462,420 3,120,830 $ 3,029,503 $ 349,656 $ 926,750 $ 493,870 $ 4,799,779 CITY OF CLERMONT, FLORIDA RECREATION IMPACT FEES SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Revenues: Taxes Impact fees/special assessments Investment income Total revenues Expenditures: Current: Public safety Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) 500,000 500,000 425,469 (74,531) 3,900 3,900 23,204 19,304 503,900 503,900 448,673 (55,227) 680,000 680,000 400,000 280,000 680,000 680,000 400,000 280,000 (176,100) (176,100) 48,673 224,773 Other Financing Sources (Uses): Sale of capital assets - Transfers in - Transfers out - Total other financing sources (uses) - (176,100) (176,100) 48,673 224,773 986,692 986,692 986,692 - $ 810,592 $ 810,592 $ 1,035,365 $ 224,773 Net Change in Fund Balance Fund Balances - Beginning Fund Balances - Ending 57 58 9 CITY OF CLERMONT, FLORIDA POLICE IMPACT FEES SPECIAL REVENUE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 1 Variance with Budgeted Amounts Final Budget - Original Final Actual Amounts Positive (Negative) Revenues: Taxes g $ ' Impact fees/special assessments Investment income 230,000 230,000 395,316 165,316 Total revenues 9,500 9,500 239,500 239,500 28,834 424,150 19,334 184,650 Expenditures: Current: Public safety Culture and recreation 53,515 53,515 33,807 19,708 Debt service: - - Principal retirement Interest and fiscal charges Capital outlay: ` General government Total expenditures 53,515 53,515 33,807 19,708 Excess (Deficiency) of Revenues Over Expenditures 185,985 185,985 390,343 204,358 Other Financing Sources (Uses): Q Sale of capital assets _ Transfers in _ - - Transfers out Total other financing sources (uses) - _ " - C Net Change in Fund Balance 185,985 185,985 390,343 204,358 G Fund Balances - Beginning 863,463 863,463 863,463 _ Q Fund Balances - Ending $ 1,049,448 $ 1,049,448 $ 1,253,806 $ 204,358 C 58 9 CITY OF CLERMONT, FLORIDA FIRE IMPACT FEES SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2005 i Variance with l� OEM Is CM 59 Budgeted Amounts Final Budget- i Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ - $ - $ _ $ Impact fees/special assessments 215,000 215,000 331,550 116,550 Investment income 3,000 3,000 11,657 8,657 Total revenues 218,000 218,000 343,207 125,207 Expenditures: Current: Public safety 55,360 59,160 55,050 4,110 Culture and recreation _ _ to Debt service: Principal retirement 49,260 49,260 50,068 (808) to Interest and fiscal charges 11,928 11,928 12,078 (150) 00 Capital outlay: General government - - _ ON Total expenditures 116,548 120,348 117,196 3,152 00 Excess (Deficiency) of Revenues Over Expenditures 101,452 97,652 226,011 128,359 Other Financing Sources (Uses): Sale of capital assets - _ _ _ Transfers in Transfers out (101,914) (101,914) (102,060) (146) Total other financing sources (uses) (101,914) (101,914) (102,060) (146) OWN Net Change in Fund Balances (462) (4,262) 123,951 128,213 00 fa Fund Balances - Beginning 377,135 377,135 377,135 - Fund Balances - Ending $ 376,673 $ 372,873 $ 501,086 $ 128,213 l� OEM Is CM 59 CITY OF CLERMONT, FLORIDA COMMUNITY REDEVELOPMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Revenues: Taxes Impact fees/special assessments Investment income Total revenues Expenditures: Current: Public safety Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 98,238 $ 98,238 $ 95,523 $ (2,715) 300 300 5,454 5,154 98,538 98,538 100,977 2,439 190,000 190,000 - 190,000 190,000 190,000 - 190,000 (91,462) (91,462) 100,977 192,439 Other Financing Sources (Uses): Sale of capital assets - - - - Transfers in 53,448 53,448 52,936 (512) Transfers out - - - - Total other financing sources (uses) 53,448 53,448 52,936 (512) Net Change in Fund Balances (38,014) (38,014) 153,913 191,927 Fund Balances - Beginning 85,333 85,333 85,333 - Fund Balances - Ending $ 47,319 $ 47,319 $ 239,246 $ 191,927 CITY OF CLERMONT, FLORIDA 2002 PUBLIC IMPROVEMENT DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Revenues: Taxes Impact fees/special assessments Investment income Total revenues Expenditures: Current: Public safety Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) 1,200 1,200 4,609 3,409 1,200 1,200 4,609 3,409 395,000 395,000 395,000 - 243,616 243,616 243,616 - - - - 638,616 638,616 638,616 (637,416) (637,416) (634,007) 3,409 Other Financing Sources (Uses): Sale of capital assets - - - - Transfers in 636,965 636,965 637,876 911 Transfers out - - - - Total other financing sources (uses) 636,965 636,965 637,876 911 Net Change in Fund Balances (451) (451) 3,869 4,320 Fund Balances - Beginning 345,787 345,787 345,787 - Fund Balances - Ending $ 345,336 $ 345,336 $ 349,656 $ 4,320 WOW SIM ow No so 61 y CITY OF CLERMONT, FLORIDA CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Final Variance with Final Budget - Actual Positive Amounts (Negative) Revenues: Taxes $ - $ - $ - $ - Impact fees/special assessments - - - Investment Income - - 2,579 2,579 Total revenues - - 2,579 2,579 Expenditures: Current: Public safety - - - - Culture and recreation - - - - Debt service: Principal retirements - - - - Interest and fiscal charges - - - Capital outlay: General government -- - Total expenditures - - - - Excess (Deficiency) of Revenues Over Expenditures - - 2,579 2,579 Other Financing Sources (Uses): Sale of capital assets - - 924,171 924,171 Transfers in - - - - Transfers out - -- - Total other financing sources (uses) - - 924,171 924,171 Net Change in Fund Balances 926,750 926,750 Fund Balances - Beginning - - - - Fund Balances - Ending $ - $ - $ 926,750 $ 926,750 62 This page intentionally left blank. Af to I� M� Wo Wo Io 00 is so No we 14 00 pe as we me OR I� FIDUCIARY FUNDS Pension Trust Funds General Employees' Pension This fund is used to account for the accumulation of Trust Fund 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 This fund is used to account for the accumulation of Trust Fund resources to be used for the retirement annuities of all police officers. The state contributes an amount determined by an actuarial study. Firefighters' Pension This fund is used to account for the accumulation of Trust Fund 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. This page intentionally left blank. CITY OF CLERMONT, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS Assets: Cash Investments Total Assets: Liabilities: Accounts payable Net Assets Held in Trust for Pension Benefits September 30, 2005 General Employees Police Defined Defined Officers Firefighters Benefit Contribution Pension Trust Pension Trust $ 26,797 $ 82,900 $ 123,529 $ 46,072 790,175 2,444,532 3,642,605 1,358,560 816,972 2,527,432 3,766,134 1,404,632 $ 790,175 $ 2,444,532 $ 3,642,605 $ 1,358,560 63 CITY OF CLERMONT, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS Additions: Contributions: Employer Plan members State Total contributions Investments income: Net increase in fair value Less investment expense Net investment income Total additions Deductions: Benefits/distributions Administrative expenses Total deductions Change in Net Assets Net Assets Held in Trust for Pension Benefits: Beginning of Year End of Year For The Year Ended September 30, 2005 General Employees Police 311,431 Total Defined Defined Officers Firefighters Employee Benefit Contribution Pension Trust Pension Trust Pension Funds $ 7,100 $ 349,910 $ 152,712 - $ 509,722 - - 47,278 11,216 58,494 - - 183,852 72,111 255,963 7,100 349,910 383,842 83,327 824,179 77,903 197,811 311,431 119,243 706,388 77,903 197,811 311,431 119,243 706,388 85,003 547,721 695,273 202,570 1,530,567 96,585 72,540 80,658 444 250,227 5,388 13,200 13,225 9,066 40,879 101,973 85,740 93,883 9,510 291,106 (16,970) 461,981 601,390 193,060 1,239,461 833,942 2,065,451 3,164,744 1,211,572 7,275,709 816,972 $ 2,527,432 $ 3,766,134 $ 1,404,632 $ 8,515,170 64 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS This page intentionally left blank. A# No Illi �i Ir�1 ■ni MD lob IAi no Iri Ono of on ag® w� N® W* allb we 00 Old No 00 00 me so 00 00 CITY OF CLERMONT, FLORIDA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY General Government Public Safety Physical Environment/ Transportation Culture & Recreation Older Assets not Maintained by Function Total General Government Public Safety Physical Environment/ Transportation Culture & Recreation Older Assets not Maintained by Function Total For The Year Ended September 30, 2005 Improvements/ Machinery/ Land Buildings Infrastructure Equipment Total $ 170,115 $ 5,553,681 $ 289,555 1,644,812 119,494 728,159 3,611,860 956,830 8,534 $ 1,105,518 $ 6,837,848 - 3,239,314 5,173,681 5,683,414 506,715 7,037,782 5,443,939 592,492 10,605,121 189,500 14,780 146,373 21,434 372,087 $ 4,380,524 $ 8,898,262 $ 11,282,260 $ 5,465,473 $ 30,026,519 Balance 09-30-04 Additions $ 6,893,957 $ 79,468 $ 4,739,666 535,115 5,353,582 1,708,385 10,443,486 161,635 Deletions and Balance Transfers 09-30-05 135,577 $ 6,837,848 101,100 5,173,681 24,185 7,037,782 10,605,121 442,577 70,490 372,087 $ 27,873,268 $ 2,484,603 $ 331,352 $ 30,026,519 65 This page intentionally left blank. ro pop Now goo goo Poo Opp 00 0-0 Ow fm so am so �l �I STATISTICAL INFORMATION Comments Relative to Statistical Section The following statistical tables that are recommended for inclusion by the Government Finance Officers Association are not included for the reasons stated below: A. Ration of Net General bonded Debt to Assessed Value and Net Bonded Debt per Capita - Last Ten Fiscal Years - The City has not had any general bonded debt over the past ten fiscal years. B. Ratio of Annual Debt Service for General bonded Debt to Total General Expenditures - Last Ten Fiscal Years - The City has not had any general bonded debt over the past ten fiscal years. C. Florida Statutes and the Charter of the City of Clermont, Florida, set no legal debt margin. M I M� CITY OF CLERMONT, FLORIDA GOVERNMENT -WIDE EXPENSES BY FUNCTION LAST TEN FISCAL YEARS Fiscal Transportation Economic Year General Public Ended Government Safety 1996 1997 1998 1999 2000 2001 2002 $1,055,914 $31,791 2003 278,063 1,172,233 2004 $2,336,912 $4,687,907 2005 2,617,095 5,772,697 Physical Transportation Economic Human Environment Public Works Environment Services $421,297 $1,055,914 $31,791 $131,633 278,063 1,172,233 12,778 148,994 I� * Data not available prior to the implementation of GASB 34. wo OWN IW IW pw MNO 000 66 Iw po A Interest on Culture & Long-term Recreation Debt Water Sewer Sanitation Stormwater Total ® $1,742,527 $350,146 $2,707,082 $3,423,209 $1,616,487 $265,645 $18,770,550 1,816,477 254,725 3,015,322 3,572,120 1,816,868 286,597 $20,763,969 67 CITY OF CLERMONT, FLORIDA GOVERNMENT -WIDE REVENUES LAST TEN FISCAL YEARS Program Revenues * Data not available prior to the implementation of GASB 34. 60 ON Io wo go wo so go General Revenues 90 Taxes $6,791,284 00 OW 8,390,846 IW !w'G OW iW OW tW t� E� Operating Capital Fiscal Year Charges Grants and Grants and Ended For Services Contributions Contributions 1996 1997 1998 1999 2000 2001 2002 2003 2004 $12,584,856 $695,987 $7,095,189 2005 12,782,995 650,353 7,966,157 * Data not available prior to the implementation of GASB 34. 60 ON Io wo go wo so go General Revenues 90 Taxes $6,791,284 00 OW 8,390,846 IW !w'G OW iW OW tW t� E� General Revenues Investment Gain on Income $ Sale of Intergovernmental Miscellaneous Capital Assets Total * * * * * * $2,369,020 $575,076 $0 $30,111,412 2,822,845 1,151,485 854,233 34,618,914 ! 69 CITY OF CLERMONT, FLORIDA GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS Fiscal General Public Physical Year Government Safety Environment 1996 $561,876 $1,257,255 $112,794 1997 636,895 1,299,427 126,409 1998 808,901 1,633,630 152,476 1999 1,059,558 1,733,444 137,219 2000 942,498 3,049,106 134,486 2001 1,098,769 3,349,348 211,801 2002 2,143,890 3,397,986 41,611 2003 5,802,367 3,968,244 35,237 2004 2,062,832 4,681,145 292,898 2005 2,186,373 5,820,424 318,811 (1) Includes General, Special Revenue, and Capital Projects Funds. Excludes Debt Service. (2) Community Development Block Grant expenditures were included in the 1996, 1997, 1998 and 1999 Fiscal Years. 70 71 (2) Economic Human Culture and Transportation Environment Services Recreation Total $448,615 $89,101 $20,191 $1,145,205 $3,635,037 912,130 247,422 20,974 1,205,642 4,448,899 589,385 416,930 24,150 743,864 4,369,336 437,386 36,111 25,794 1,347,959 4,777,471 494,953 25,586 24,914 1,733,423 6,404,966 639,780 102,323 19,573 2,242,733 7,664,327 640,053 1,118,029 69,479 1,936,273 9,347,321 809,642 346,544 88,638 1,516,317 12,566,989 1,064,503 31,791 139,378 2,681,840 10,954,388 2,519,421 32,793 156,380 1,220,808 12,255,010 71 CITY OF CLERMONT, FLORIDA mm— ova GENERAL GOVERNMENTAL REVENUE BY SOURCE (1) go LAST TEN FISCAL YEARS Now upw Licenses Charges &VO Fiscal and Inter- for Year Taxes Permits Governmental Services saw son 1996 $2,377,962 $84,260 $665,899 1997 2,497,102 97,347 988,581 1998 2,769,826 133,595 1,012,582 1999 3,171,446 149,702 872,081 2000 3,911,066 188,517 959,751 2001 4,873,847 211,101 930,028 2002 5,677,448 252,702 1,407,363 2003 6,733,867 277,264 1,152,050 2004 6,791,284 466,422 2,758,120 2005 8,390,846 484,161 5,215,839 (1) Includes General, Special Revenue, Debt Service and Capital Projects Funds. 72 $32,537 No 46,354 ow 42,459 44,336 ow 60,148 ow 36,613 io 367,279 378,425 son 380,669 ONO 389,041 Sam saw Fines and Investment Impact Forfeitures Income Fees Miscellaneous Total 151,879 102,405 98,751 244,904 3,758,597 128,047 81,605 127,284 224,626 4,190,946 160,522 85,140 200,960 293,853 4,698,937 108,720 86,799 240,412 311,494 4,984,990 174,044 148,136 996,145 1,258,318 7,696,125 145,564 241,756 944,819 1,157, 372 8,541,100 111,517 140,425 1,314,171 177,322 9,448,227 114,013 144,130 1,424,349 218,885 10,442,983 124,755 107,363 1,592,057 541,208 12,761,878 164,065 266,961 1,152,335 309,859 16,373,107 73 CITY OF CLERMONT, FLORIDA PROPERTY TAX LEVIES, TAX COLLECTIONS AND ASSESSED VALUATIONS LAST TEN FISCAL YEARS (2) Estimated (1) (4) Fiscal Tax Actual Assessed Tax Year Year Value Valuation Rate 1996 1995 $228,727,934 $205,855,141 2.979 1997 1996 236,824,197 213,141,778 2.979 1998 1997 274,964,642 247,468,178 2.979 1999 1998 324,049,311 291,644,380 2.979 2000 1999 396,645,279 356,980,751 3.479 2001 2000 500,572,450 450,515,205 3.729 2002 2001 634,697,383 571,227,645 3.729 2003 2002 800,152, 736 720,137,462 3.729 2004 2003 1,017,237,491 915,513,742 3.729 2005 2004 1,331,617,610 1,198,455,849 3.729 (1) Final gross taxable assessed valuation per Lake County Property Appraiser's form DR -422. (2) The Florida Department of Revenue has certified the Lake County tax rolls as being at least 90% of the estimated actual value of property within the County. Therefore, the estimated actual values shown are calculations based on the 90% certification. (3) Outstanding delinquent taxes are not available from the Lake County Property Appraiser's office. (4) Tax rate per $1,000 of taxable valuation. 74 75 Ratio Ratio of Current Tax (3) Total Tax Collections Delinquent Total Collections Tax Current Tax to Total Tax Tax to Total Levy Collections Levy Collections Collections Tax Lew $613,242 $592,529 96.6% $2,406 $594,935 97.0% 634,949 608,205 95.8% 9,224 617,429 97.2% 737,207 700,112 95.0% 9,841 709,953 96.3% 868,809 836,304 96.3% 1,604 837,908 96.4% 1,241,936 1,200,779 96.7% 4,492 1,205,271 97.0% 1,679,971 1,606,686 95.6% 9,190 1,615,876 96.2% 2,130,108 2,022,265 94.9% 16,263 2,038,529 95.7% 2,685,393 2,583,380 96.2% 7,995 2,591,375 96.5% 3,413,951 3,290,066 96.4% 14,666 3,304,731 96.8% 4,469,042 4,303,551 96.3% 17,889 4,321,439 96.7% 75 CITY OF CLERMONT, FLORIDA PROPERTY TAX RATES - DIRECT AND ALL OVERLAPPING GOVERNMENTS (1) LAST TEN FISCAL YEARS (2) Lake County Fiscal Tax Lake MSTU Year Year City County Stormwater 1996 1995 2.979 4.927 0.000 1997 1996 2.979 4.909 0.000 1998 1997 2.979 4.733 0.000 1999 1998 2.979 4.733 0.000 2000 1999 3.479 4.733 0.100 2001 2000 3.729 5.117 0.200 2002 2001 3.729 5.117 0.300 2003 2002 3.729 5.917 0.400 2004 2003 3.729 5.917 0.500 2005 2004 3.729 5.817 0.500 (1) Information was obtained from the City of Clermont tax rolls, as prepared by the Lake County Property Appraiser's office. (2) Tax rate per $1,000 of taxable valuation. 76 Lake County Lake County South Lake St. Johns River School Water Hospital Water Management District Authority District District Total 9.678 0.3840 2.0000 0.482 20.4500 9.228 0.3840 2.0000 0.482 19.9820 9.100 0.3840 2.0000 0.482 19.6780 9.190 0.3840 2.0000 0.482 19.7680 8.742 0.5000 1.0000 0.482 19.0360 8.495 0.5000 1.5500 0.472 20.0630 8.202 0.5000 1.5289 0.462 19.8389 8.395 0.4819 1.5289 0.462 20.9138 8.440 0.4080 1.5289 0.462 20.9849 7.990 0.3831 1.5289 0.462 20.4100 77 CITY OF CLERMONT, FLORIDA COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT September 30, 2005 The City of Clermont did not have any overlapping debt at the above fiscal year end. 78 CITY OF CLERMONT, FLORIDA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS DATA SOURCES: (1) College of Business Administration, University of Florida - Bureau of Economic and Business Research. (2) Figures represent grades K-9 in public schools. Source - Lake County School Board (3) Information available on countywide basis only. Data was obtained from the Florida Agency for Workforce Innovation, Labor Market Statistics, Local Area Unemployment Statistics Program, in cooperation with the U.S. Department of Labor, Burieau of Labor Statistics. we (2) (3) Fiscal (1) School Unemployment Year Population Enrollment Rate 1996 7,291 2,381 5.2% 1997 7,582 2,180 3.1% 1998 8,202 2,412 2.2% 1999 8,861 3,683 2.7% 2000 9,455 3,841 2.6% 2001 10,571 4,500 3.4% 2002 13,718 4,616 4.7% 2003 15,391 4,630 4.6% 2004 17,654 5,219 4.0% 2005 20,017 5,165 3.8% DATA SOURCES: (1) College of Business Administration, University of Florida - Bureau of Economic and Business Research. (2) Figures represent grades K-9 in public schools. Source - Lake County School Board (3) Information available on countywide basis only. Data was obtained from the Florida Agency for Workforce Innovation, Labor Market Statistics, Local Area Unemployment Statistics Program, in cooperation with the U.S. Department of Labor, Burieau of Labor Statistics. we CITY OF CLERMONT, FLORIDA PROPERTY VALUE CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS (1) Commercial Construction Fiscal # of Year Units Value (1) Residential Construction # of Units Value 1996 17 $6,735,881 157 $10,386,535 1997 14 3,340,805 289 17,797,703 1998 13 24,686,500 333 21,414,385 1999 5 17,725,000 492 34,375,122 2000 11 22,396,000 711 58,829,964 2001 17 17,264,099 884 82,040,352 2002 39 52,342,866 829 77,470,156 2003 22 18,757,595 959 124,837,420 2004 24 14,271,550 1,155 158,457,544 2005 23 7,115,156 673 103,671,837 DATA SOURCES: (1) City of Clermont zoning clearances. (2) Information available on countywide basis only. Data was obtained from the Federal Deposit Insurance Corporation (FDIC) (3) Taxable assessed valuation per Lake County Property Appraiser's form DR -422. (4) Non-taxable assessed valuation per Lake County Property Appraiser's office. :a 81 Assessed Taxable (2) Property Value Bank (3) (4) Deposits Taxable Nontaxable $1,776,670,000 $205,855,141 $58,399,561 2,035,941,000 213,141,778 65,771,140 2,421,416,000 247,468,178 75,608,647 2,563,111,000 291,644,380 82,258,004 2,793,537,000 356,980,751 88,776,967 3,011,000,000 450,515,205 105,296,517 3,158,000,000 571,227,645 128,221,920 3,411,000,000 720,137,462 166,209,240 3,613,000,000 915,513,742 238,373,202 4,091,000,000 1,198,455,849 299,161,939 81 Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 goo CITY OF CLERMONT, FLORIDA VON e00 WATER AND SEWER CUSTOMER DATA low LAST TEN FISCAL YEARS 001� Water Residential 3483 3987 4549 5009 5992 7303 8461 10529 12751 15205 Annual Number of Customers Water Commercial 391 439 447 490 531 579 644 723 817 921 Sewer Usage Residential Commercial Gal 2334 358 630,763,000 2770 386 833,834,000 3099 388 1,087,078,000 3328 443 1,146,663,000 3928 458 1,394,359,000 5001 511 1,365,196,000 6243 581 1,299,701,000 7650 673 1,338,818,000 9217 767 1,655,203,000 11059 883 1,788,337,000 Source: Water and Sewer Customer Data Reports as of September 30 82 p� CITY OF CLERMONT, FLORIDA PRINCIPAL TAXPAYERS Percentage Assessed of Total Valuation Assessed Taxpayer as of January 1, 2005 Valuation 1� John P. Adams & Ann D. Adams Family LP $22,667,653 1.89% PO Box 1667 Winter Haven, FL 33882 South Lake Hospital, Inc. 20,240,658 1.69% C/O Orlando Regional Healthcare PO Box 562008 ip Orlando, FL 32856 010 Lennar Homes, Inc. 14,636,004 1.22% 00 151 S Wymore Rd Ste 4000 00 Altamonte Springs, FL 32714 is Sundance Clermont LLC 11,898,472 0.99% im 11200 Rockville Pike Rockville, MD 20852 Corporation 11,764,377 0.98% 00 PO Box 9456 PO Minneapolis, MN 55440 Clermont Center LTD 10,372,650 0.87% 18205 Biscayne Blvd #2202 Aventura, FL 33160 Village at East Lake Ltd Partnership 9,538,019 0.80% _ 300 East Lombard St Ste 1200 Baltimore, MD 21202 Lost Lake Reserve LC 9,370,630 0.78% 33 E Wall St Pik Frostproof, FL 33843 040 oil KB Home Orlando LLC 9,291,419 0.78% 8403 South Park Cir Ste 670 Orlando, FL 32819 Lucas Clermont Limited Partnership 9,053,797 0.76% 401 N Cattleman Rd Ste 108 Sarasota, FL 34232 TOTAL $128,833,679 10.75% Source: 2005 City of Clermont Tax Roll, prepared by the Lake County Property Appraiser's office. 83 CITY OF CLERMONT, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 2005 Date of Incorporation Present Charter Adopted Form of Government Number of Council Members Term of Office Mayor/Council Members City Manager Area of City Municipal Boundaries Miles of Streets Number of Streetlights Cemetery Fire Protection Number of Stations Number of Volunteer Firefighters Number of Part-time Firefighters Number of Full-time Firefighters Number of Fire Hydrants Police Protection Number of Stations Number of Sworn Personnel Education Number of Schools: Elementary Middle Number of Teachers Number of Students Municipal Water Department Number of Customers Average Daily Consumption Miles of Water Mains Wastewater and Sanitary Sewers Miles of Sanitary Sewer Lines Miles of Storm Sewer Lines 84 1916 1962 Council -Manager Five (5) Two Years (2) Appointed 12.45 square miles 101.39 - 1,131 1 3 27 6 22 1,431 2 38 3 2 350 5,165 15,205 4,899,553 gallons 97.23 44.26 10.27 CITY OF CLERMONT, FLORIDA MISCELLANEOUS STATISTICAL DATA -CONTINUED SEPTEMBER 30, 2005 Recreation and Culture Number of Parks Scenic Linear Trail Fishing Piers Number of Libraries City Employees Full -Time Part -Time 0 Kok �I 00 No 00 00 M 85 22 with 101.5 acres 5.7 miles 4 1 207 14 CITY OF CLERMONT, FLORIDA UTILITY REVENUE BOND COVERAGE - ALL UTILITY REVENUE BONDS LAST TEN FISCAL YEARS Total (1) Fiscal System Operating Year Revenues Expenses 1996 $1,997,673 $1,038,809 1997 2,277,479 1,240,707 1998 2,641,987 1,514,280 1999 2,968,098 1,737,216 2000 3,832,369 2,122,938 2001 5,082,750 2,236,146 2002 5,473,607 21,952,556 2003 6,178,579 3,461,216 2004 7,546,012 4,339,959 2005 8,394,737 4,773,639 (1) Excludes interest expense and depreciation. (2) Maximum debt service in any subsequent year is $1,304,315 87 (2) Debt Net Service Revenues Requirements Coverage $958,864 $509,3550 1.88/o 1,036,772 708,660 1.46% 1,127, 707 711,2501.59% 1.59/o 1,230,882 726,858 1.69% 1,709,431 724,400 2.36% 2,846,604 932,127 3.05% 2,521,051 932,128 2.70% 2,717,363 1,007,128 2.70% 3,206,053 1,066,328 3.01% 3,621,098 1,132,665 3.20% 87 This page intentionally left blank. CITY OF CLERMONT, FLORIDA LARGEST EMPLOYERS Employer South Lake Hospital Lake County School System Target Publix - Citrus Tower Village CBS Builders Supply Inc. City of Clermont Home Depot Westminister Care of Clermont Publix - Kings Ridge Winn Dixie No :: Number of Industry Employees Health Care 929 Education 557 Retail 321 Grocery 250 Construction Supplies 230 Municipality 221 Retail 187 Retirement and Nursing 169 Grocery 144 Grocery 130 CITY OF CLERMONT, FLORIDA SCHEDULE OF INSURANCE COVERAGES SEPTEMBER 30, 2005 Policy Expiration Type of Coverage & Insurer Number Date Liability Florida Municipal Liability WIT 101 9/30/2005 Self Insurer's Program Workers Compensation Florida Municipal Self FMIT 101 9/30/2005 Insurers Fund Fire and Extended Coverage Florida Municipal Property WIT 101 9/30/2005 Self -insurers Program Details Limits General Liability $100,000/Person Bodily Injury Liability $200,000/Occurrence Auto Liability Law Enforcement Liability Specific Excess Liability $1,500,000/Occurrence Public Officials Errors $1,500,000/Occurrence and Omissions Liability Finance Director -Bond $100,000 Public Employees Blanket Bond $5,000 Accidental Death-Police/Fire $50,000 Statutory Workers Compensation $100,000/500,000 per Schedule Blanket Building and Property $38,405,700 •11 This page intentionally left blank. w' do so so wo so so ON ON w MCDIRMIT DAVIS Is CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED I IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and City Council City of Clermont, Florida We have audited the basic financial statements of the City of Clermont, Florida, as of and for the year ended September 30, 2005, and have issued our report thereon dated December 21, 2005. owl We conducted our audit in accordance with auditing standards generally accepted in the United Ne States of America and the standards applicable to financial audits contained in Government Nn) Auditing Standards, issued by the Comptroller General of the United States. OP Compliance and Other Matters - As part of obtaining reasonable assurance about whether the NFRi City of Clermont, Florida's basic financial statements are free of material misstatement, we 08 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 NO determination of financial statement amounts. However, providing an opinion on compliance with 09 those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be 08 reported under Government Auditing Standards. However, we noted certain immaterial instances 06 of noncompliance that we have reported to management of the City of Clermont, Florida in a OT� separate letter dated December 21, 2005. NP Internal Control Over Financial Reporting - In planning and performing our audit, we om considered the City of Clermont, Florida's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving the internal control over financial reporting that we have reported to management of the City of Clermont, Florida in a separate letter dated December 21, 2005. MCDIRMIT DAVIS & COMPANY, LLC 605 E. ROBINSON STREET, SUITE 635 - ORLANDO, FLORIDA 32801 TELEPHONE 407-843-5406 - FAx 407-649-9339 - EMAIL: INFO q MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION - AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS - FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 91 This report is intended solely for the information and use of management, the City Council and the Auditor General of the State of Florida and is not intended to be, and should not be used by anyone other than these specified parties. �l1�G!.i��rzit lid & Cern�Daru� LLC December 21, 2005 i� i� i� i� i� r Ow 11d 92